[ ]Stage 1 Stage2 [ ]Surveillance - rspo.org · PT. MUTUAGUNG LESTARI ASSESSMENT REPORT SPO –...

PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT

Roundtable on Sustainable Palm Oil Certification

[ ]Stage 1 [√]Stage2 [ ]Surveillance

Plantation Management/Owner : SCHEME SMALLHOLDER of PT. Ramajaya Pramukti, Rama Rama Mill, IVOMAS TUNGGAL

Plantation Name : Amartha Jaya Plasma and Sungai Tapung Plasma

Location : Distirict of Kampar, Province of Riau

Certificate Code : MUTU-RSPO/010

Date of certificate issue : 12 January 2012

Date of expiry of certificate : 12 January 2017

Assessment Type

Assessment Date

Report Finalization

Date

PT. Mutuagung Lestari Auditor

Reviewed by

Approved by

ST1 04-05 April

2012 30 July 2012

Octo HPN Nainggolan; Oktovianus Rusmin; Doni; Ibnu Satria Prabudi

Taufik Margani

Tony Arifiarachman

ST2 11, 13, 16-20

June 2012

Nanang Mualib; Octo HPN Nainggolan; Marsudi Eko Santoso

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:


ASSESSMENT REPORT

SPO – 4006a.4 i

Prepared by Mutuagung Lestari for Scheme Smallholder of PT Ramajaya Pramukti

TABLE OF CONTENT

FIGURE

Figure 1. Location Map of PT Ramajaya Pramukti Scheme Smallholder

1

1.0 SCOPE of the CERTIFICATION ASSESSMENT

1.1 National Interpretation Used 2

1.2 Organization Information 2

1.3 Type of Assessment 2

1.4 Location of Plantations, Mill and Area Statement 2

1.5 Description of Supply Base 3

1.6 Dates of Plantings and Cycles 3

1.7 Approximate Tonnage Certified 4

1.8 Other Certifications 4

1.9 Time Bound Plan for Other Management Units 4

2.0 ASSESSMENT PROCESS

2.1 Certification Body 6

2.2 Lead Assessor and Assessment Team 6

2.3 Assessment Methodology, Assessment Process and Locations of Assessment 7

2.4 Stakeholder Consultation and List of Stakeholder Contacted 10

2.5 Determine Next Visit 10

3.0 ASSESSMENT RESULT

3.1 Summary of Assessment Report of the RSPO Certification 11

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

37

3.3 Summary of Arising Issues from Public, Management and Auditor Responses 39

4.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Sign-off of Assessment Findings 41

APPENDICES

1. List of Stakeholder Contacted in the RSPO Certification Process 42

2. Assessment Program 44

3. Glossary 45

4. Peer Review Report 47

5. Result of RSPO Committee - RSPO Certification 48

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.4 Page 1


Figure 1. Location Map of Amartha Jaya Plasma and Sungai Tapung Plasma


ASSESSMENT REPORT

SPO – 4006a.4 Page 2 Prepared by Mutuagung Lestari for Scheme Smallholder of PT Ramajaya Pramukti

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-SWG,Scheme Smallholders October 2009.

1.2 Organization Information

1.2.1 Company name PT Ramajaya Pramukti - IVO MAS TUNGGAL

1.2.2 Contact person Ismu Zulfikar

1.2.3 Company address Plaza BII Tower 2, 30th Floor JL. MH Thamrin No 51 Kav 22 Jakarta 10350 Indonesia

1.2.4 Tel (+62-21) 318 1388

1.2.5 Fax (+62-21) 318 1389

1.2.6 E-mail [email protected]

1.2.7 Web page address www.smart-tbk.com

1.2.8 Company status Private

1.2.9 Management Representative who completed the application for certification

Ismu Zulfikar (Head of Environmental Departement)

1.2.10 Registered as RSPO member 17 June 2008

1.3 Type of Assessment

1.3.1 Scope of Assessment

Ramarama Palm Oil Mill which processed the production from PT Ramajaya Pramukti scheme smallholders.

1.3.2 Type of certificate Single

1.3.3 Company names listed in the certificate PT RAMAJAYA PRAMUKTI – Rama Rama Mill

1.3.4 Number of management unit Amarta Jaya Plasma consist of 5 (five) Village Cooperative Unit (KUD) which are: Makmur Lestari, Sibuak Jaya, Muara Mahat, Mekar Jaya, Mukti Lestari

Sungai Tapung Plasma consist of 5 (five) Village Cooperative Unit (KUD) which are: Karya Tani, Tunas Makmur, Cinta Damai, Bangun Desa, Berkat Lestari

1.4 Locations of Plantations, Mill and Area Statement

1.4.1 Location of estate

Name of Estate(s) Location

GPS

Latitude Longitude

Amarta Jaya Plasma Village of Kenantan, Subdistrict of Tapung Hilir, District of Kampar, Province of Riau

00 32’ 02.64” N 1010 04’ 47.42” E

Sungai Tapung Plasma Village of Suka Maju, Subdistrict of Tapung Hilir, District of Kampar, Province of Riau

00 45’ 03.49” N 1010 14’ 44.94” E

1.4.2 Maps ( Figure 1 )

mailto:[email protected]

http://www.smart-tbk.com/


ASSESSMENT REPORT


1.4.3 Country Indonesia

1.4.4 Region South East Asia

1.4.5 Village/Sub District/District/Province Subdistrict of Tapung and Tapung Hilir, District of Kampar, Province of Riau

1.4.6 Tenure

1.4.6.1 Private 10,011 Ha

1.4.6.2 State -

1.4.6.3 Community -

1.4.7 Area Statement Amartha Jaya Plasma (Ha) Sungai Tapung (Ha)

Total area 4,426 5,585

Mature area 4,426 5,585

Immature area - -

Mill 49.30 (Within land title area of PT RJP)

Infrastructure - -

Land Clearing (if any) - -

Occupation (if any) - -

HCV 117.03 154.48

Other area - -

1.5 Description of Supply Base (scheme smallholder production to Rama Rama Mill)

Name of Smallholder Cooperative

(KUD)

Member(s) Total Area

(Ha)

Planted Area (Ha)

FFB (tonnes/year)

Yield (tonnes/ha/year)

Supplied to Mill

FFB (tonnes/year)

%

Sungai Tapung Plasma

Berkat Lesatri* 318 656.50 656.50 22,242.92 33.88 - -

Cinta Damai * 620 1,257.50 1,257.50 39,414.50 31.34 - -

Bangun Desa* 830 1,671.00 1,671.00 53,987.17 32.31 - -

Karya Tani 420 840.00 840.00 28,455.30 33.88 28,455.30 100

Tunas Makmur 580 1,160.00 1,160.00 44,268.70 38.16 44,268.70 100

Amarta Jaya Plasma

Makmur Lestari

500 1,000.00 1,000.00 28,476.73 28.48 28,476.73 100

Sibuak Jaya 533 1,066.00 1,066.00 31,792.19 29.82 31,792.19 100

Muara Mahat Sejahtera

457 914.00 914.00 27,138.69 29.69 27,138.69 100

Mekar Jaya 482 964.00 964.00 27,428.77 28.45 27,428.77 100

Mukti Lestari 240 482.00 482.00 14,326.40 29.72 14,326.40 100

TOTAL 4,980 10,011.00 10,011.00 317,531.37 31.72 201,886.78 63.58

*FFB supplied to LIBO POM (Ivomas Tunggal Group) on June 2011 – May 2012

1.6 Dates of Plantings and Cycles

1.6.1 Age profile of planted palms*


ASSESSMENT REPORT


Planting Year

Hectarage (Ha)

Sungai Tapung Plasma Amartha Jaya Plasma Total

1991 - 400 400

1992 - 1,666 1,666

1993 - 2,350 2,350

1995 3,076 - 3,076

1996 2,509 - 2,509

2001 - 10 10

TOTAL (Ha) 5,585 4,426 10,011

1.6.2 New Development area after November 2005 - Ha

1.6.3 Planting Cycle 25 Years

1.7 Approximate Tonnage Certified

1.7.2 Approximate FFB Production (1 June 2012 – 31 May 2013)

Name of Estate(s) Total Area

(Ha) Planted Area

(Ha) FFB

(tonnes/year) Yield

(tonnes/ha/year)

Rama Rama Estate 4,082.11 3,879.40 117,235 30.22

Scheme Smallholder 10,011.00 10,011.00 317,532 31.72

TOTAL 14,093.11 13,890.40 434,767 31.3

1.7.3 Approximate Palm Product Production (Rama Rama Mill production 1 June 2012 – 31 May 2013 )

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 (%)

Rama Rama Mill 60 319,122 64,526 20.22 16,818 5.27 7,139 42.45

*FFB supply from Rama Rama Estate (100%), Amartha Jaya Plasma (100%) and Sungai Tapung Plasma (38.6%)

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 ISCC (International Sustainability and Carbon Certification): 1. STPA (central office), Certificate Number: EU-ISCC-Cert-DE104-

14101219, Valid: 01 Feb 2012-31 Jan 2013, CB: GUT Cert. 2. AJYP (central office), Certificate Number: EU-ISCC-Cert-DE104-

14101225, Valid: 01 Feb 2012-31 Jan 2013, CB: GUT Cert.

1.9 Time Bound Plan for Other Management Units

IVO MAS TUNGGAL has committed to make time bound plan for all the other management units in implementing the P&C standard or to gain the RSPO certificate. The auditor team had put this plan into consideration in accordance with the RSPO Certification System for Partial Certification. The development and follow up of the plan will be verified and reported in the annual visits.


ASSESSMENT REPORT


Mill Company Region Mill Estate (FFB Supplier) Time Bound

Plan Complete

Audit

PT. IVOMAS TUNGGAL

SIAK-RIAU SSMM Samsam Mill

SSME Samsam Estate 2009 Certified

KNDE Kandista Estate 2009 Certified

PLPE Palapa Estate 2009 Certified

PT. IVOMAS TUNGGAL

SIAK-RIAU LIBM Libo Mill LIBE Libo Estate 2009 Certified

NGLE Nenggala Estate 2009 Certified

SRKE Sungai Rokan Estate 2009 Certified

PT. IVOMAS TUNGGAL

SIAK-RIAU UTJM Ujung Tanjung Mill

UTNE Ujung Tanjung Estate 2009 Certified

STPA Sungai Tapung Plasma

2011 Certified

PT. BUANA WIRA LESTARI MAS

KAMPAR- RIAU

NSAM

Nagasakti Mill

NMAE Nagamas Estate 2010 Certified

NSAE Nagasakti Estate 2010

Certified

RBKE Rama Bakti 2010 Certified


KAMPAR- RIAU

KJNM Kijang Mill KJGE Kijang Mas Inti Estate

2010 Certified

KJNP Kijang Kencana Scheme smallholder

2012 2012

PT. RAMAJAYA PRAMUKTI

KAMPAR- RIAU

RRMM Rama Rama Mill

RRME Rama Rama Estate 2010 Certified

AJYP Amartajaya Scheme smallholder

2012 2012


INDRAGIRI-RIAU

IDSM Indra Sakti Mill

IDLE Indra Lestari Estate 2012

IDSE Indra Sakti Estate 2012

INDA Indragiri Scheme smallholder

2012

IDSA Indrasakti Scheme smallholder

2012

PT. BUMIPALMA LESTARI PERSADA

INDRAGIRI-RIAU

BPLM Bumipalma Mill

BPLE Bumi Lestari Estate 2012

BPME Bumi Palma Estate 2012

BSNE Bumi Sentosa Estate 2012


ASSESSMENT REPORT


2.0 ASSESSMENT PROCESS

2.1 Certification Body

PT Mutuagung Lestari

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

Telp. +62-21-8740202

Fax +62-21-87740745/46

Website: www.mutucertification.com

Email : [email protected]

2.2 Assessment Team

ST1

The assessment team was consisted of: 1. Octo H.P.N Nainggolan (Lead Auditor). A bachelor of Agriculture, Department of Social Economics of

Agriculture (Agribusiness). He has a working experience from year 2004 to 2011 as an Operational Staff in a private oil palm plantation company in Indonesia. Trainings attended namely: Training of Conservation of Natural and Biological Resources in supporting HCV, Basic Plantation Management Program, Plantation Integrated Pest Management training, Followed the Management System Certification (ISO 9001-2008/SNI 19-9001:2008), Lead Assessor Training RSPO Lead Auditors Training Course and supply chain certification system training by BM Trada. He has conducted several audit activities related to certification system of sustainable oil palm plantation as an auditor. In the assessment activity, he conducted assessment on Waste Management, Implementation of OHS, FFB Processing, best practices, social welfare, environment aspect and legality.

2. Oktovianus Rusmin (Auditor). Bachelor’s Degree in Social & Political Sciences Department of Anthropology. Specialists in the field of Social and Cultural (Social Impact & Conflict Resolution) and HCVF. Training attended: Forest Management Auditor Training (FSC Standard), ISO 14001 Environmental Management System, SVLK Auditor (wood legality) & Indonesian Sustainable Palm Oil (ISPO) Auditor. He was several times involved in the assessment of Sustainable Forest Management Certification (Standard LEI). Had worked at the Center for the study of Anthropology, University of Indonesia; and experts to the field of Social Tropical Forest Trust (TFT) Indonesia. He was numerously involved the Social Impact Study and Identification HCV in Oil Palm Plantations and natural forest concessions. In this Stage-1 activity, he conducted assessment of social aspect, worker welfare and land concession.

3. Doni (Auditor). Master Degree in Rural Sociology. He has been followed Sustainable Forest Management (SFM) certification from the Indonesian Ecolabelling Institute (LEI) year 2008 and SFM Up-Grading Training in Gunung Batu Forestry Training Centre Bogor Year 2010. Since year 2003 he has made several SFM certification audits, including: PT. Teluk Bintuni Mina Agro Utama West Papua Province year 2010 PT. ITCIKU East Kalimantan Province year 2009, Koperasi Meranti Tumbuh Indah Cooperative Bodies at East Kalimantan Province year 2008, PT Memberamo Agro Indan Mandiri year 2008, PT. Arara Abadi at Riau Province year 2005, PT. INHUTANI III (Nanga Pinoh) East Kalimantan, year 2003. Since year 2005 until now he worked as a freelancer at BAPPENAS, Ministry of Underdeveloped Regions Development (Kementrian Pembangunan Daerah Tertinggal) and Ministry of Public Works at Dirjen Cipta Karya as an evaluation team. Year 2006-2007 he worked at JICA and UN-HABITAT-UNDP. In this Stage-1 he conducted the assessment on employment and social aspects.

4. Ibnu Satria Prabudi (Auditor). A Bachelor of Agriculture Majoring in Agro-technology, Agriculture Faculty of Instiper

Yogyakarta. Currently he has been working with an independent certification agency as auditor. Training he has followed are: Lead Auditor RSPO, Auditor ISPO, Awareness HACCP certification, Awareness SQMS Mc Donald, In House Training Green House Gas and Awareness ISO: 9001. He has followed several audit activities related to

certification system of sustainable palm oil (RSPO certification) as observer and Auditor. He has been working with an independent certification body as auditor. In this Stage-1 activity he assessed best agronomic practices and social.

ST2 The assessment team was consisted of: 1. Nanang Mualib (Lead Auditor). Bachelor of Forestry Majoring in Forest Products Technology, Forestry Faculty

of Bogor Institute of Agriculture (IPB). He has work experience in forestry companies (HPH) since 2000 to 2004 as technical assistance in application of Sustainable Forest Management; and a joint program between the Forestry Faculty of IPB and WWF-Indonesia since December 2006 to present. His professional experiences are, among other: HCV social study in monitoring the implementation of Sustainable Forest Management, and had been involved in the identification of HCV in the three oil palm plantation companies in Indonesia. Currently he

http://www.mutucertification.com/


ASSESSMENT REPORT


works as a professional consultant and assessor HCV. In this Stage-2 activity, he assessed social, legal, HCV management, and employment aspects.

2. Octo H.P.N Nainggolan (Auditor). A bachelor of Agriculture, Department of Social Economics of Agriculture (Agribusiness). He has a working experience from year 2004 to 2011 as an Operational Staff in a private oil palm plantation company in Indonesia. Trainings attended namely: Training of Conservation of Natural and Biological Resources in supporting HCV, Basic Plantation Management Program, Plantation Integrated Pest Management training, Followed the Management System Certification (ISO 9001-2008/SNI 19-9001:2008), Lead Assessor Training RSPO Lead Auditors Training Course and supply chain certification system training by BM Trada. He has conducted several audit activities related to certification system of sustainable oil palm plantation as an auditor. In the assessment activity, he conducted assessment on Waste Management, Implementation of OHS, FFB Processing, best practices, social aspect, environment aspect and legality.

3. 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 activity, he conducted assessment on best practices, Soil and water conservation, Integrated Pest Management and workers welfare.

2.3 Assessment Methodology, Assessment Process and Locations of Assessment

2.3.1 Assessment Dates

ST1 Stage-1 Assessment date at 4-5 April 2012

ST2 Stage-2 Assessment date at 11, 13, 15, 16, 17, 18, 19, 20 July 2012

2.3.2 Estimate of person days to implement assessment

ST1 Number of auditors : 4 persons Number of days for assessment at Location : 2 days Number of working days for assessment at Location : 8 Days

ST2 Number of auditors : 3 persons Number of days for assessment at Location : 6 days Number of working days for assessment at Location : 18 Days

2.3.3 Detail process of assessment

ST1

Stage 1 activity aims to measure the company’s readiness in implementing standards of RSPO for scheme smallholders, personal understanding concerning standards of RSPO implementation for scheme smallholders, state location, approaching process of certification aspects, identifying stakeholders, to evaluate internal audit and management in planning and the performance to the RSPO implementation for scheme smallholders, and to see the smallholders readiness to enter Stage-2. Assessment is conducted by measuring adequacy of implementation with the efforts performed by smallholders groups to the requirements of National Interpretation of Republic of Indonesia from RSPO Principle and Criteria (P&C) for scheme smallholders for Sustainable Palm Oil Production (RSPO INA-SWG, October 2009). Assessment is conducted in two methods: Method 1 is document review, aiming to observe the adequacy of either types or substances of the documents required; and Method 2 is interview, aiming to obtain more detailed information and cross check. Several directions of improvement of Stage-1 result are presented by auditors to the management, and the result becomes verification material for the actual assessment stage (stage-2). All information obtained is recorded in the Check List of Mutuagung Lestari and becomes the main attachment of Assessment Result Report. Complete assessment process is as follows: 02 April 2012. The auditor team traveled to the location. In the afternoon the auditor team conducted an opening meeting in Naga Mas Estate, attended by the VPA of Kampar Region, PC of Kampar Region, RC of Kampar Region, RC of Scheme smallholders, managers of scheme smallholders and other personnel that represented their own departments.


ASSESSMENT REPORT


04 April 2012. auditor team reviewed documents related to the scope of the Ramarama Mill that obtains supplies of FFB from Amartha Jaya Plasma and Sungai Tapung Plasma concerning the environmental, social, legal, and economic aspects 05 April 2012. The auditor team continued reviewing documents for Amartha Jaya Plasma and Sungai Tapung Plasma. The auditor team conducted a closing meeting in Sinar Mas Representative Office of Pekan Baru Regional, attended by VPA PSM 5, RC Scheme smallholders PSM 5, Manager of Amarta Jaya Plasma, Manager of Kijang Plasma, and Manager of Sungai Tapung Plasma.

ST2 Stage-2 activity (main assessment) aims to measure the adequacy of implementation with the efforts performed by smallholder groups concerning the requirements of National Interpretation of Republic of Indonesia from the RSPO Principle and Criteria (P&C) for scheme smallholders for the Sustainable Palm Oil Production (RSPO INA-SWG, October 2009) There are 3 (three) methods of assessment, which are: (1) company documents review, aims to observe the completeness, validity, and the substance adequacy from the documents required; (2) interview, aims to obtain more detailed information; and (3) field observation, aims to directly observe the adequacy of implementation in the field comparing to the data result of the interview and information stated in the documents. Several directions for improvement from Stage 2 assessment result is presented by MUTU auditor to the management (Amartha Jaya Plasma and Sungai Tapung Plasma, KUD and Smallholder Groups), and the result becomes verification materials for Surveillance Stage (S1). All information obtained is recorded in the Check List of Mutuagung Lestari and becomes the main attachment of Assessment Result Report. Complete assessment process as follows: 11 June 2012. The auditor team traveled to location. In the afternoon, the auditor team conducted an opening meeting in Naga Mas Estate Mess, attended by VPA Kampar Region, PC Kampar Region, RC Kampar Region, RC scheme smallholders, manager of scheme smallholders, chairman of KUD, and other personnel that represented their own departments. At the same time, an opening meeting was also conducted by Amartha Jaya Plasma and Sungai Tapung Plasma. 13 June 2012. The auditor team held a public consultation with the local stakeholders (Plantation Agency, cooperative agency, head of sub-district, head of village, and community leaders) along with the public consultation of PT. Buana Wiralestari Mas Scheme Smallholders and followed with document observation at Sibuak Jaya cooperative. 15 June 2012. The auditor team reviewed documents for Mukti Lestari and Berkat Lestari cooperatives. 16 June 2012. The auditor team conducted a field visit to observe the P&C RSPO implementation of smallholder groups included in Sibuak Jaya cooperative and followed with document observation at Bangun Desa cooperative. 17 June 2012. Auditor team analized the collected data. 18 June 2012. The auditor team conducted a field visit to observe the P&C RSPO implementation of smallholder groups included at Mukti Lestari and Berkat Lestari cooperatives. 19 June 2012. The auditor team conducted a field visit to observe the P&C RSPO implementation of smallholder groups included at Bangun Desa cooperative. 20 June 2012. The auditor team held a closing meeting in Naga Mas Estate Mess, attended by VPA Kampar Region, PC Kampar Region, RC Kampar Region, RC scheme smallholders, manager of scheme smallholders, chairman of KUDs, and other personnel that represented their own departments. Closing meeting was also held at the same time with Kijang Kencana Plasma.

2.3.4 Locations of Assessment

ST1

Currently the auditor team only conducted documents observation of Amartha Jaya Plasma and Sungai Tapung Plasma which was performed at the office of Buana Wiralestari Mas.

ST2 Mutuagung Audit team conducted an assessment of the scheme smallholders operation of 10 (ten) smallholder

cooperatives by sampling 4 (four) cooperatives based on the RSPO sampling formula (0.8 √Y whereby Y is number

of cooperatives). This sampling strategy was developed based on the RSPO sample size, the geographical location

of the cooperatives and number of smallholder members. The RSPO sampling formula also used for the selection of

members to be assessed. The cooperatives (KUD) sampled were Sibuak Jaya, Berkat Lestari, Bangun Desa and


ASSESSMENT REPORT


Mukti Lestari.

The locations visited by the auditor at the time of assessment include:

1. Office of Sibuak Jaya cooperative, the implementation of documents review and interview with the cooperative

officials related to P&C RSPO.

2. Office of Mukti Lestari cooperative, the implementation of documents review and interview with the cooperative


3. Office of Berkat Lestari cooperative, the implementation of documents review and interview with the cooperative


4. Office of Bangun Desa cooperative, the implementation of documents review and interview with the cooperative


5. Block C16 of Sibuak Jaya cooperative.

Observation and interview with a harvester (Mr. Slamet) regarding the safe harvesting techniques, criteria of

ripe FFBs, the use of PPE, workers welfare and remuneration.

Interview with a smallholder (Mr. Subhan) regarding potential hazards of occupational accident, handling

procedures of occupational accidents, fire-burning area handling and efforts to prevent fire-burning area, the

presence of protected animals such as white throated kingfisher and leopard cat (macan akar).

6. Block E of Sibuak Jaya cooperative. Interview with a smallholder (Mr. Pepen Supendi) regarding potential

hazards of occupational accidents, handling procedures of occupational accidents, fire-burning area handling

and efforts to prevent fire-burning area, the presence of protected animals such as white throated kingfisher and

leopard cat.

7. Block C13 of Sibuak Jaya cooperative.

Interview with a smallholder (Mr. Abdul Jalil) regarding potential hazards of occupational accidents, handling


presence of protected animals such as white throated kingfisher and leopard cat.

Interview with a spray worker (Suryadi) regarding periodical check-up to spray workers, PPE provided by the

company, workers welfare and remuneration.

8. Block L3 of Mukti Lestari cooperative.

Interview with a smallholder (Mr. Kusni) regarding potential hazards of occupational accidents, handling



Observation on the sign board of protected animals (HCV 4.1).


Interview with smallholders (Mr. Hendar Suparman and Mr. Catur Yunanto) regarding potential hazards of

occupational accidents, handling procedures of occupational accidents, fire-burning area handling and

efforts to prevent fire-burning area, the presence of protected animals such as white-throated kingfisher and

leopard cat.


Interview with a smallholder (Mr. Mulikan) regarding potential hazards of occupational accidents, handling



11. Block H25 Bangun Desa cooperative.

Interview with a smallholder (Mr. Sangkot) regarding the IPM, potential hazards of occupational accidents,

handling procedures of occupational accidents, fire-burning area handling and efforts to prevent fire-burning

area, the presence of protected animals such as white throated kingfisher and leopard cat, agrochemical

waste management such as used packaging of pesticide and waste water of spray equipment washing.

Interview with the Harvest Supervisor (Mr. Jimun) regarding potential hazards of occupational accidents,


ASSESSMENT REPORT


handling procedures when occupational accidents occur, the obligation of using PPE, fruit quality control.

Observation and interview regarding the presence of owl nests that are still active marked by the remains of

rats bones, bird droppings, bird feathers and there are also owls found.

Observation and interview with a harvest worker (Mr. Watirin) regarding the safe harvesting techniques,

criteria of ripe fruit, the use of PPE, workers welfare and remuneration.

12. Block G6 of Sibuak Jaya cooperative.

Interview with smallholders (Mr. Trimono, Sahroni, and Nartin) regarding the IPM, potential hazards of

occupational accidents, handling procedures of occupational accidents, fire-burning area handling and

efforts to prevent fire-burning area, the presence of protected animals such as white throated kingfisher and

leopard cat, agrochemical waste management such as used packaging of pesticide and waste water of

spray equipment wash.

Observation and interview with a harvester (Mr. Nursaid) regarding the safe harvesting techniques, criteria of

ripe fruit, the use of PPE (it was found that some harvesters still wore damaged boots), workers welfare and

remuneration.

Interview with the spray workers (Susanto and Joni) regarding periodical check-up for the spray workers,

procedures on pesticide waste management (used packaging of pesticide and waste water of spray

equipment washing), frequent health complaints, the PPE provided by the company.

13. Block H7 of Sibuak jaya cooperative. Observation and interview regarding the planting of Turnera subulata.

14. Block H5/I5 of Amarta Jaya Plasma. Observation and interview regarding the former manuring that is not in

accordance with the policy and management of HCV 4.1.

The scheme smallholders assessment was based on random samples and therefore nonconformities may exist which have not been identified.

2.4 Stakeholder Consultation and List of Stakeholders Contacted

2.4.1 Stakeholders public consultation was conducted in the following ways:

1) Public Announcement in the RSPO website.

2) Stakeholders were contacted by invitation letter and telephone to arrange the meetings. Public consultation

meeting with the internal and external stakeholders was held at the same time with public consultation of scheme

smallholders (Kijang Kencana Plasma) of PT Buana Wiralestari Mas on 13 June 2012. PT Ramaja Pramukti staff

were not present at any of the meetings with smallholders or external stakeholders

2.4.2 List of stakeholder contacted (List of stakeholder contacted at the assessment)

Appendix 1

2.5 Determining Next Visiting

The annual surveillance is planned to be carried out within 12 (twelve) month after the initial certification approved by RSPO.


ASSESSMENT REPORT


3.0 ASSESSMENT RESULT MUTUAGUNG LESTARI has conducted an assessment of PT Ramajaya Pramukti Smallholders Operation

consisting a sample of 4 (four) KUDs. MUTUAGUNG LESTARI found that PT Ramajaya Pramukti Smallholders

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

Criteria (P&C) for Sustainable Palm Oil Production, Republic of Indonesia - RSPO INA-SWG, Scheme

Smallholders October 2009. MUTUAGUNG LESTARI recommends PT Ramajaya Pramukti scheme smallholders

as expansion of certified mill’s scope from existing certificate of Rama Rama Mill - PT Ramajaya Pramukti.

3.1 Summary of Assessment Report of the RSPO Certification

Ref Std. VERIFICATION RESULT of MUTU-Certification

PRINCIPLE #1 COMMITMENT TO TRANSPARENCY

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

Records on Information Request and Responses to the stakeholders are available in the communication books which include dates, names, complete addresses, problems and solutions. For example, on 12 February 2012 workers requested leaky pipes to be repaired. In addition, there are suggestion boxes placed in the staff housing, division office, head office, generator office, G-1 housing, security station, car wash, badminton court, archives warehouse and fertiliser warehouse. Information request is set in the SOP of Information Request and Responses (SOP/SPO/SMRT/LH-02). In general, the working stages in the SOP are: (1) Responding to the information request and relevant stakeholders in accordance with the principle and criteria of

sustainable palm oil production. (2) In the case that the request from stakeholders that is not contained in the information and relevant stakeholders, it

is necessary to ask for consideration and approval of the top management by consulting with the relevant departments first.

Procedure of document retention time is set in the SOP of Document Control and Retention Time 9SOP/SPO/SMRT/LH-02). It is stated in the SOP that the retention time of the documents in the SPO secretariat is 5 years. If the documents and records are not kept in SPO, the document controller is allowed to keep them in the company archives warehouse by making storage minutes and complying with the applicable provisions. “Communication Book” is available in the office of Berkat Lestari KUD which elaborates Date of Incoming/Outgoing mail, Name of the Applicant, Institution name, Request, For Purposes, Disposition, Initial of Decision Maker, No. Ref. Verdict (BA/TT/kwitansi) and Status. In 2010 there were 5 requests in 2011 there were 8 requests. Physical documents of information letter are documented in the files of incoming/outgoing mail, for example Request of Funding from Pemuda Pancasila Branch Leader of Kampar District No. 012/MPC-PP/V/2012 on 16 May 2012 and have been granted by Berkat Lestari KUD in the amount of IDR 200,000 on 16 May 2012 (Payment Receipt).

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.

Documents are available in each of smallholders institutional office at the time of assessment, such as at the Sibuak Jaya KUD, namely: 1. Legal Document.

a. Deed of Cooperative Establishment No. 68 dated 6 February 2012 regarding Copies of Articles of Association Amendment Deed of Sibuak Jaya KUD.


ASSESSMENT REPORT


b. Company Registration Certificate (TDP) No. 04 825200080 dated 2 March 2009 valid until 2 March 2013. c. Operational License/Business Allocation License in accordance with Decree of Kampar Head District No.

180/HK/08005 dated 24 February 2009 valid for 5 years from the issuance. d. Letter of Medium Commerce Business Permit in accordance with the Letter of Head of Industry of Commerce

Agency of Kampar District no. 34/perindag-PP/04-08/SIUP dated 27 February 2009 valid until 27 February 2013.

e. Taxpayer Registration Number: 01.701.368.1-221.000 dated 14 February 1995. Validation of Sibuak Jaya KUD is in accordance with Letter of Head of Regional Office of Cooperative Department and PPK Riau No. 114/KEP/KWK.4/5.1/XII/1993 dated 18 December 1993.

f. In accordance with Decree of Kampar Head of District No. 412.3/DISKOP/287/2009 dated 12 October 2009; the rank of Sibuak Jaya Cooperative belongs to the class of “Moderate Qualified” cooperatives.

g. Building Construction Permit of Sibuak Jaya Cooperative is in accordance with Decree of Kampar Head of District No. 650/CKTR/IMB/0360 dated 30 November 2009.

h. Member list of Sibuak Jaya KUD which elaborates the Names of Smallholders, Names of Smallholder Groups, Blocks, and Plots Number.

i. All plots belong to smallholders have obtained certificate of ownership (SHM) issued by National Land Agency of Kampar District, for example; Land Certificate No. 767 (SK.07/PIR/KW.24-KR/95) dated 25 September 1995 on behalf of Iding, Petapahan Village covering 20,000 M²; Land Certificate No. 823 (SK.07/PIR/KW.24-KR/95) dated 25 September 1995 on behalf of Anang B. Sardi, Petapahan Village covering 20,000 M²; Land Certificate No. 782 (SK.07/PIR/KW.24-KR/95) dated 25 September 1995 on behalf of Ajun Junaedi, Petapahan Village covering 20,000 M².

2. Environmental Documents. a. EIA of oil palm plantation-PIR Trans and the plan of processing mill in Siak Hulu Sub district, Kampar District,

Riau Province year 1993 (approved by Agricultural Ministry according to Decree of Agricultural Ministry No. RC.220/497/B/III/94 dated 18 March 1994).

b. Environmental Monitoring Plan (RPL) of Oil Palm PIR-Trans and The Processing Mill in Siak Hulu Sub district, Kampar District, Riau Province year 1995 (approved by Agricultural Ministry according to Decree of Agricultural Ministry No. 092/RKL-RPL/BA/IV/96 dated 30 April 1996)

c. Environmental Management Plan (RKL) of Oil Palm Plantation and Processing Mill of PT. Buana Wiralestari-Sikijang Estate in Siak Hulu Sub district, Kampar District of Riau Province in 1996 (approved by Agricultural Ministry in accordance with Decree of Agricultural Ministry No. 092/RKL-RPL/BA/IV/96 dated 30 April 1996).

d. HCV Document performed by the internal party in 2010 is compiled by Dr. Kunkun J. Gurmaya (Approved RSPO HCV Assessor), Dede M. Nasir (Approved RSPO HCV Assessor), Firmansyah (HCV Network Participant), Yosaphat AR. (Approved RSPO HCV Assessor), and Laurentinus V. Baskoro and has been reviewed by Dr. Ir. Nyoto Santoso. Types of HCV found are HCV 1.1 (Potential), HCV 1.2 (White throated kingfisher; Halycon smyrnensis, Leopard cat; Felis bengalinsis), HCV 4.1 (Potential) and HCV 6.

3. Social Documents. a. Document of Social Impact Analysis was compiled by the Internal Team (Siti Amanah, Tomi Hendartomo,

Yosaphat Ardilla R, and Nazyla Syahputri) in the form of Survey Document of Social, Economic, and Cultural Condition and also Community Perception in the village around the Plantation/Mill of RJP year 2010.

b. Accountability Report of the Officials year 2011 and Work Program & Revenue and Expenditure Budget Plan (RAPB) of Sibuak Jaya KUD year 2012 at the Annual Member Meeting on 31 March 2012 indicates that in 2011 social assistance has been implemented for Mosque Development in the amount of IDR 63,960,000 and contribution to the Village (Pemdaker) of 2.5 % dividend in the amount of IDR 5,869,396.43. Periodical fee for the development of MDA (Madrasah Diniyah Awliyah/Islamic Primary School) approved is IDR 50,000/plot for 6 (six) months in 2012.

Full Compliance

PRINCIPLE #2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

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

Documents of regulatory compliance available at the office of Amarta Jaya Plasma and Sungai Tapung Plasma are relevant as a compliance evidence, for example; 1. Inventory of the relevant and recent regulations. For example, list of applicable and current regulations available

that was made on 14 November 2011.


ASSESSMENT REPORT


2. Scheme smallholders’ management has conducted dissemination to the cooperative units within the operational area.

3. Evaluating the compliance with the rules, regulations and other requirements such as Occupational Health and Safety (OHS). Evaluation methods consist of regulations, the articles being evaluated, requirements and implementations in the field.

Based on the result of the visit at the Sibuak Jaya KUD, Mukti Lestari Oil Palm Smallholders Cooperative (KOPSA), Berkat Lestari KUD, and Bangun Desa KUD, Statute No. 25 Year 1992 is available concerning Cooperatives along with the Government Regulation issued by the Cooperative Management Institution as follow; 1. Statute No. 25 Year 1992 on Cooperatives. 2. Government Regulation No. 4 Year 1994 concerning Requirements and Procedures on Ratification of Deed and

Cooperative Articles of Association Amendments. 3. Government Regulation No. 17 Year 1994 on the Dissolution of the Cooperatives by the Government. 4. There is Regulation of Riau Governor No. 22 year 2006 regarding Guidelines for Purchasing Price Determination of

FFB of Oil Palm Produced by the Growers in Riau Province dated 29 August 2006.

Full Compliance

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

All land owned by smallholders have obtained Certificate of Ownership (SHM) issued by National Land Agency (BPN) of Kampar District, for example; 1. Land Certificate No. 767 (SK. 07/PIR/KW.24-KR/95) dated 25 September 1995 on behalf of Iding, Petapahan

Village covering 20,000 M²; 2. Land Certificate No. 823 (SK. 07/PIR/KW.24-KR/95) dated 25 September 1995 on behalf of Anang B. Sardi,

Petapahan Village covering 20,000 M²; 3. Land Certificate No. 782 (SK. 07/PIR/KW.24-KR/95) dated 25 September 1995 on behalf of Ajun Junaedi,

Petapahan Village covering 20,000 M²; 4. Land Certificate No. 230 (SK. 04/PIR/KW.24-KR/98) dated 09 April 1998 on behalf of Sangkot, Sawah Village

covering 20,000 M²; 5. Land Certificate No. 270 (SK. 04/PIR/KW.24-KR/98) dated 09 April 1998 on behalf of Rachmat, Sawah Village

covering 20,000 M²; 6. Land Certificate No. 354 (SK. 04/PIR/KW.24-KR/98) dated 09 April 1998 on behalf of Syafi’i, Sawah Village

covering 20,000 M²; Based on interviews with the officials of Sibuak Jaya KUD, KOPSA Mukti Lestari, Berkat Lestari KUD and Bangun Desa KUD, it is stated that until the implementation of ST-2 (Assessment) there are no objection of other parties associated with land ownership within the work area of AJYP and STPA. Should there be an objection on the level of smallholders, it will be resolved also on the levels of either smallholder groups or KUDs. And should there be problems related to the main company, it will be resolved on the level of either KUDs or Scheme smallholders Communication Forum. There is a suggestion box in every KUD; however there are not any incoming mails yet. Regular meeting of smallholders group is conducted periodically depends on each KUD in determining the meeting frequency, for example Sibuak Jaya KUD holds a members meeting every 6 (six) months.

Full Compliance

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

Based on the observation of documents and interviews with the cooperative officials (Sibuak Jaya KUD, KOPSA Mukti Lestari, Berkat Lestari KUD and Bangun Desa KUD) and the scheme smallholders (KT Sejahtera, KT Mulya Tani, KT Gemi Karya, KT Suka Maju, KT Tani Makmur, KT Sumber Rejeki) mentioned that there are no traditional rights ownership taken over by the smallholder institutional/scheme smallholders. All scheme smallholder areas have obtained Certificate of Ownership (SHM) from National Land Agency (BPN) of Kampar District.

Full Compliance

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.


ASSESSMENT REPORT


There are documents of Production Plan for the Next 3 Years of Amarta Jaya Plasma’ Estates and Sungai tapung Plasma as the projection of production data at each KUD as follows:

Smallholder Scheme

Name of KUD Area (Ha) Projection of FFB Production (Kg)

2012 2013 2014

Amarta Jaya Makmur Lestari 1,000 28,318,000 27,610,050 27,057,849

Sibuak Jaya 1,066 29,971,000 29,221,721 28,637,291

Muara Mahat Sejahtera

914 26,506,000 25,843,350 25,326,483

Mekar Jaya 964 26,992,000 26,317,200 25,790,856

Mukti Lestari 482 14,350,000 14,024,500 13,781,155

TOTAL 4,426 126,137,000 123,016,825 120,593,634

Sungai Tapung Karya Tani 840 26,334,000 25,280,640 24,294,695

Bangun Desa 1,671 51,629.500 49,564,320 47,631,312

Cinta Damai 1,257.5 38,641,250 37,095,600 35,648,872

Tunas Makmur 1,160 35,860,000 34,425,600 33,083,002

Berkat Lestari 656.5 20,679,750 19,852,560 19,078,310

TOTAL 5,585 173,144,500 166,218,720 159,736,190

1. RJP provides guidance to AJYP and STPA scheme smallholders by forming the Scheme smallholders Agronomy

Department. 2. RJP assign 6 (six) scheme smallholder’ assistants for each KUD at AJYP and 5 (five) assistants for each

Cooperative at STPA in order to improve service and guidance to the smallholders and Cooperatives. 3. The Scheme Smallholders Assistant performs daily activities such as monitoring Cooperative targets and work

programs, monitoring FFB production and quality, rotating daily harvesting, monitoring manuring, dissemination to the smallholder groups, taking records of daily or weekly meeting.

4. RJP performs regular meeting or coordination with the Cooperative party at AJYP and STPA every 3 (three) months which is attended by Scheme smallholder Manager, Scheme Smallholder Assistant, Smallholder Groups and cooperative officials concerning operational plans that will be performed in 3 (three) months and being monitored every day.

5. Every cooperative has plans and annual budget projections that include; Projections of the production potential of FFB from 2012-2014 whose determination is guided by Department of Scheme Smallholders with monthly allocation and related Cooperatives.

6. Cooperatives have monitoring records and supervision on the revenue and expenditure costs for operational activities such as saving for Replanting activity, payment to Bank loan, etc.

7. Every Cooperative through smallholder groups responsible for coordinating the harvesting activities such as FFB weighing result, coordinating FFB transportation, arrangement of harvesting plots (hancak panen), quality of FFB until the weighing at the mill.

8. Cooperatives perform transporting activities of FFB managed by contract with the owner of transportation unit which is reinforced in Work Agreement Letter (SPK).

9. FFB price information is monitored and updated that refers to the Meeting Result of FFB Price Determination of Plantation Agency, the representative of Plantation Company and Plantation Association PIR-Trans (ASPEKPIR) of Riau Province every week, as conducted on 5 June 2012 and established, such as in the period of 6 – 12 June 2012 which explains the classification of age of the plants with the price range from IDR 1,151.92 to IDR 1,610.25.

Full Compliance

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

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

RJP has prepared guidelines of activity procedures of oil palm plantation to smallholders in AJYP and STPA based on the manual of Good Agriculture Practice, document of Guideline of Cultivation Techniques (Oil Palm) of Sinarmas Agribusiness and Food No. Policy SMA/MCAR/MEI 2007 which is applicable since 1 May 2007. It explains the Planting Plan (such as types and the number of certified seed of high quality), Nursery, Pre-planting Preparation, Road and Bridge, Land Clearing and Planting, Pest, Diseases and Weeds (such as pest and diseases in Immature Plant and


ASSESSMENT REPORT


Mature Plant and their control, general instructions about safety in working with pesticide), Manuring (such as nutrient elements and deficiency symptoms in plants, the type and characteristics of some fertilisers), Immature Plant Upkeep, Pra-Harvesting Activities, Mature Plant Upkeep, Harvesting and Transportation, Environmental Management (includes Environmental management, Implementation of Environmental management System and Environmental Conflict Resolution), SOP of OHSAS which includes Maintaining Determination and OHS Policy Communication, Hazard Identification, Risk Assessment and Risk Control (HIRARC), Emergency Handling, Occupational Accidents Handling, Hazardous Material and Hazardous Waste Management and its transportation and is applicable since 1 July 2010. The SOP describes the duties and responsibilities, preparation of facilities and infrastructures, the use of PPE, OHS which is also used as training material in the form of training to scheme smallholders with the aims of implementation similar to the procedures from RJP. Amarta Jaya Plasma (Sibuak Jaya KUD, KOPSA Mukti Lestari) and Sungai Tapung Plasma (Bangun Lestari KUD and Berkat Lestari KUD) have documents of technical guidelines from RJP coaching result in all cooperative units as stated in documents of RSPO certification of each cooperative unit which explain:

16 circular letters of KUDs, such as: waste management appeal, agronomical technical guidance letter, the minimum age limit, working hour setting, riparian protection, livestock prohibited spraying areas, etc. There is a circular letter to all cooperative officials at Kampar Plasma of RJP and BWL issued by Regional Controller of Kampar - Plasma with no. 01/SE-RC Kampar Plasma1/2012 dated 3 January 2012 that explains the use of certified quality seeds for scheme smallholder estates.

12 work instructions of KUDs (TK-KUD) which describe activities, such as: fruit-cutting activity, manuring and transporting the FFB, washing and cleaning the used pesticide and fertiliser sacks, manufacturing spray solution, plant pest management, etc.

9 Standard Operational Procedures (SOP) of KUDs which explains the communication and stakeholder consultation, contractors control, waste management, replacement of members and changes in ownership of plots in KUDs, etc.

14 documents of workflow/working procedures which among others describe the flow of members replacement and changes in ownership of plots in KUDs, flow of communication, flow of washing of used fertiliser sacks and used pesticide, procedures of spray solution at the KUDs, etc.

There are evidence of activities in cooperative operations, such as: 1. Sibuak jaya KUD has documents of Division Work Program which explains operational work as follow:

a. Activities of circle and harvesting path spraying in 2012 since January until May 2012 with the planned rotation of spraying 2 (two) times a year, as in May 2012 the spraying was conducted in 4 smallholder groups (Mawar Sari, Setia Sari, Sido Mulyo, and Sumber Rejeki) covering 140 hectares with the use of 35 liters of herbicide materials (dose of 0.25 liter/hectare).

b. Pruning activity is conducted once a year, as in May 2012 covering 204 hectares in 10 smallholder groups. c. Weeding activity is conducted in May 2012 in 10 smallholder groups covering 193 hectares.

2. KOPSA Mukti Lestari has documents of Division Work Program which explains operational work such as: a. Documents of harvesting activities, such as monitoring crop rotation of KOPSA Mukti Lestari in May 2012 that

describe determination of harvesting location (block/smallholder groups) with rotation after every 7 (seven) days the block will be harvested again. There is a Crop result Book of 14 June 2012 that describes Mawar Indah Smallholder Group, Harvesting Block M-4, 21 smallholders, the number of FFB is 1,066 bunches weighing 119,180 kgs. This document was made by field officers from KOPSA Mukti Lestari and the leader of smallholder groups. There is a document of weighing note from Ramarama Palm Oil Mill which supports the result of weighing FFB harvested from the smallholders.

b. Integrated Pest Management (IPM) activity which is stated in the document of Monitoring Gupon Tyto Alba that explains 13 (thirteen) owl nests (Barn Owl Box) in active condition that are regularly checked by upkeep supervisors of KOPSA Mukti Lestari. There is a document of Detection Data of Oil Palm Leaves Eater Caterpillar (UPDKS) conducted by smallholder supervisor and acknowledged by Scheme Smallholder Assistant, for example, from the observation activity conducted on 24 April 2012 there were no attacks from fire caterpillar.

c. Activities of circle and harvesting path spraying in 2012 since January until April 2012 with the planned rotation of spraying 2 (two) times a year, as in April 2012 the spraying was conducted covering 161 hectares with the use of 40 liters of herbicide materials (dose of 0.25 liter/hectare).


ASSESSMENT REPORT


d. Pruning activity is conducted once a year, as in May 2012 covering 40 hectares in 2 smallholder groups (Tani Makmur and Tunas Harapan).

e. Manual weeding activity is conducted in May 2012 in 2 smallholder groups (Setia Jaya and Saiyo) covering 67 hectares.

3. Berkat Lestari KUD has documents of Division Work Program which describe operational works such as: a. Activities of circle and harvesting path spraying in 2012 since January until May 2012 with the planned rotation

of spraying 3 (three) times a year, as in May 2012 the spraying was conducted covering 163 hectares with the use of 81.5 liters of herbicide materials (dose of 0.5 liter/hectare).

b. Pruning is conducted 2 (two) times a year, as in March 2012 covering 2,800 hectares in 8 smallholder groups (Teguh Tirta Kencana, Mekar Sari).

c. Manual weeding activity is conducted in May 2012 in 2 smallholder groups (Sumber Rejeki and Gemi karya) covering 111 hectares.

4. Bangun Desa KUD has documents of Division Work Program which describe operational works such as: a. Activities of circle and harvesting path spraying in 2012 since January until May 2012 with the planned rotation

of spraying 3 (three) times a year, as in May 2012 the spraying was conducted covering 416 hectares with the use of 208 liters of herbicide materials (dose of 0.5 liter/hectare).

b. Monitoring owl cages (Barn Owl Box) of Bangun desa KUD what describe locations and the activity of owl cages. There are 41 owl nests and 3 damaged cages. Based on the monitoring data in May 2012, there are 56 barn owls in Bangun Desa KUD.

c. There are records of harvesting activities in the form of harvest section, harvest book that describes smallholder groups, harvest blocks, number of bunches, weight. Bangun desa KUD has not been able to show the result of harvest quality monitoring (rare fruits, poles, rotten fruits) as a function of harvested FFB quality control.

Based on the assessment result in Block H25 of Bangun Desa KUD, it is acknowledged that there are harvesting activities by applying predetermined procedures include how to work safely. Harvest result is recorded in a grading document carried out by the Scheme smallholders Management, witnessed by representatives of smallholder groups.

Full Compliance

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

RJP through SMART Research Institute (SMARTRI) performes an analysis of leaves sampled in several blocks and performed annually in each Cooperative Unit in order to support the use of fertiliser counseling program according to the needs based on the identification of nutritional needs of oil palm planted in AJYP and STPA, such as Sibuak Jaya KUD performed Leaf Sample Analysis on 21 January – 4 February 2012, in the document of LSU Sample Tree Measurement that describes leaf sampling locations, sampling dates, sampling time/hour, records of visual condition of nutrient element deficiency and performed by scheme smallholders assistant. RJP recommends manuring with reference to the type of fertilisers and dose needed according to the leaf analysis to smallholders through their cooperatives. Each cooperative manages fertiliser distribution provided by RJP and the fertilisers are distributed to smallholders as indicated in the document of Manuring Consumption in every KUD in 2011 such as: 1. Sibuak Jaya KUD, AJYP in 2011 there are several types of fertiliser used such as Urea in the amount of 191.05

tonnes, TSP in the amount of 80.3 tonnes, Rock Phosphate in the amount of 221.65 tonnes, MOP in the amount of 443.9 tonnes, Kieserite Granular in the amount of 161.7 tonnes, Super Dolomite 105.9 tonnes, HGFB in the amount of 8.5 tonnes.

2. KOPSA Mukti Lestari, AJYP in 2011 there are several types of fertiliser used such as Urea in the amount of 111.73 tonnes, Rock Phosphate in the amount of 82.85 tonnes, MOP in the amount of 218.15 tonnes, Kieserite Granular in the amount of 161.7 tonnes, Super Dolomite 102.8 tonnes, HGFB in the amount of 3.1 tonnes.

3. Berkat Lestari KUD, STPA buys fertiliser from the third party (fertiliser supplier) and partner Company (RJP) provides assistance in the form of fertiliser analysis result from SMARTRI laboratory in 2011. There are several types of fertiliser used such as Urea in the amount of 241.7 tonnes, TSP in the amount of 97.8 tonnes, Rock Phosphate in the amount of 130.4 tonnes, MOP in the amount of 347 tonnes, Super Dolomite in the amount of 195.6 tonnes, Borate in the amount of 8.15 tonnes.


ASSESSMENT REPORT


4. Bangun Desa KUD, STPA buys fertiliser from the third party (fertiliser supplier) and partner Company (RJP) provides assistance in the form of fertiliser analysis result from SMARTRI laboratory such as analysis result to the MOP fertiliser on 20 March 2011 by analyzing water content, K2O, Cl. Based on the data in 2011 there are several types of fertiliser used such as Urea in the amount of 438 tonnes, TSP in the amount of 496.8 tonnes, MOP in the amount of 496.8 tonnes, Super Dolomite in the amount of 579.6 tonnes, Borate in the amount of 20.7 tonnes.

Every KUD in AJYP and STPA has records of harvest activity in every smallholder group as a payment base to the owner. AJYP has FFB production monitoring for the latest 3 (three) years for every smallholder group and Cooperative that is always updated and compared the achievement based on the budget projection of FFB production as in the data from 2009 – 2011. There are productivity data for the latest 3 years such as:

1. Sibuak Jaya KUD, AJYP in 2009 produced 13,910.96 tonnes (28.86 tonnes/hectare), in 2010 produced 12,247.57 tonnes (25.4 tonnes/hectare), in 2011 produced 13,956.88 tonnes (28.96 tonnes/hectare).

2. KOPSA Mukti Lestari, AJYP in 2009 produced 13,910.96 tonnes (28.86 tonnes/hectare), in 2010 produced 12,247.57 tonnes (25.4 tonnes/hectare), in 2011 produced 13,956.88 tonnes (28.96 tonnes/hectare).

3. Berkat Lestari KUD, STPA in 2009 produced 13,950.22 tonnes (30.38 tonnes/hectare), in 2010 produced 19,645.5 tonnes (29.92 tonnes/hectare), in 2011 produced 22,364.09 tonnes (34.06 tonnes/hectare).

4. Bangun Desa KUD, STPA in 2009 produced 49,248.52 tonnes (29.47 tonnes/hectare), in 2010 produced 48,373.06 tonnes (28.95 tonnes/hectare), in 2011 produced 55,436.58 tonnes (33.18 tonnes/hectare).

Based on the observation of documents and interview with the scheme smallholders, it is known that AJYP and STPA do not perform activity of empty bunch application or dung fertiliser application.

Full Compliance

4.3 Practices minimize and control erosion and degradation of soils.

Based on the Map of Soil Observation (Peta Tanah Tinjau) in area of RJP AJYP and STPA in 2011, there are locations of AJYP and STPA that do not have slope areas more than 22% (90) or steep so there is no terracing implementation and there are no peat areas. The map is based on: 1. Desk Study of Kijang Plasma Area of PT. Buana Wiralestari Mas, September 2011. 2. Shuttle Radar Topography Mission (SRTM) 3. Citra Landsat 7 path/row, 127/059, recorder, 26 April 2000 in the area of Kampar District and its surroundings. 4. Data of Field Survey on 14 – 19 November 2011, PNPM Division. Based on field visit there are activities to reduce or minimize soil erosion and degradation i.e. Neprolephis planting and u shape frond stacking. On the location of AJYP and STPA, There are no immature plantings in AJYP and STPA as both plasmas were planted in 1995. The topography map for the whole of AJYP and STPA shows that there are peat areas with depth of < 1 meter, however: 1. Sibuak Jaya KUD, AJYP has neither low lying nor peat areas. 2. KOPSA Mukti Lesatri, AJYP has a drainage in Block L-5 (Tunas Harapan). 3. Bangun desa KUD, STPA has neither low lying nor peat areas. 4. Berkat Lestari KUD, STPA has neither low lying nor peat areas.

Full Compliance

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

There is minutes of the of HCV Identification Implementation Presentation report conducted by HCV Section – Environment Department of PT. SMART to Makmur Lestari KUD on 17 November 2011 at the office of Amarta Jaya Plasma, attended by 18 persons from Chairman of KUD, secretary, smallholder groups, customary head, scheme smallholders staff that describe the HCV 1.1 and 4.1 areas (riparian) whose management will be assisted by Scheme Adviser in managing the riparian. Document of HCV Management Plan is available which is programmed by AJYP Smallholder Scheme Adviser and acknowledged by KUDs such as bamboo planting as many as 50 clumps and vetiver grass as many as 50 clumps in


ASSESSMENT REPORT


Block E8 Kouk Riparian of Makmur Lestari KUD of Kenantan Village on 30 December 2011, and document of HCV Management Plan that is programmed by STPA Smallholder Scheme Adviser and acknowledged by Bangun Desa KUD in Felambayan Riparian at Block I23/DIV 4 covering 39 hectares, the planting on 5 February 2012 is 10 clumps of Vetiver Grass and 60 clumps of king grass. There is a statement issued on 9 November 2011 concerning HCV management area by smallholders of Makmur Lestari KUD of AJYP and on 8 March 2011 concerning HCV management area by smallholders of Cinta Damai KUD of STPA acknowledged by Head of Kenantan and Cinta Damai Village which describe the following: 1. In efforts to maintain the quality of river water which can be used, smallholders are willing to manage the oil palm

plantation manually (non-chemical) with no spraying in riparian as wide as 50 meters. 2. In the efforts to prevent erosion at the riparian, smallholders are willing to plant erosion preventing plants (such as

bamboo, sugar cane (Saccharum officinarum), and other plants).

Based on the observation and interview at the Block H5/15 AJYP, in Lembu riparian there are warnings not to conducted any chemical application (spraying and fertilizing) and found bamboo and sugar cane planting to erosion preventing, however there was found that fertiliser application is not accordance with the smallholders cooperative policy (KUD) and HCV 4.1 management recommendation which is no fertilizer application along the riparian to preserve natural water source. Non-conformance CAR.2012.01. The organization has documents of division work program with the type of circle and harvesting path spraying, for example at the division 4 of STPA-Bangun Desa KUD which informs the use of pesticide each block. Based on the data, at the Block I23 (Tekat Maju Smallholder Group) with 40 Ha area, the circle and harvesting path spraying are conducted covering 39 hectares, from the information obtained from the chairman of KUDs and scheme smallholders assistant. It is because the difference of 1 hectare is a riparian area with manual control. Documents of fertilizer monitoring of first semester year 2012 are available which inform the use of fertilizers, for example at Block I23 covering 39 hectares accordance with fertilizer recommendation.

Minor 4.4.1

Non conformance, see CAR.2012.01 with Minor category

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

The pest control work stage document (Document No. TK/KUD-BD/TM/12) point 1; regarding the detection of pests and diseases by performing detection in all areas and the observations of pests and diseases attack level is available The EWS system is available at Amarta Jaya Plasma, for example: 1. The detection data of UPDKS (Oil Palm Leaves Eater Caterpillar) which was conducted through 2 (twice)-a-month

observation. The monitoring datas on February and April 2012 are available. For example at Block H8; area of 33 Hectares, year of planting 1992 which was observed on 30 April 2012 stated no attacks were found and observations on 09 February 2012 also showed results of no attacks.

2. There were attacks of rats based on the results of grading at RamaRama POM in point 3.3 concerning the criterias of damaged fruits due to rats attacks, up to present there’s no findings of rats attacks that exceeded the economic threshold (>20% FFBs are affected).

3. The documents of Ganoderma sp Census Recapitulation at Division 1 Makmur Lestari KUD period 2010 and 2011 are available, and actions to prevent the spread of diseases through eradication and activities of affected plants isolation have been conducted and in year 2012, there’s no findings of new attacks.

Efforts of biological pest control by utilizing the natural enemies are available, such as: 1. Increasing the number of nettle caterpillar host plants (Tunera subulata). Based on the data of Tunera planting at SP

2 year 2011, for example in Block 26 planned there are beneficial plant nursery and realisation in the month of May for 166 Tunera seeds, planting in July by the method of planting is 2 Tunera (3x1 M) of each block, and the upkeep planned in September - December 2012.

2. Barn Owl boxes (gupon) monitoring is available, for example the monitoring at Block L5, Gupon No. 9 is conducted every month and data of monitoring in June (02/06/2012) showed proper condition result, there were findings of


ASSESSMENT REPORT


owl’s feathers and the owl’s eggs thus it is stated that the Owl nests is in the active state. The worker observing the owl nests is Tunut (supervisor)

3. Establishing trench isolation and sowing fungicide which contains Trikorderma into it. The eradication of Ganoderma is conducted through the exposure of sunlight (Ganoderma Fungi from the diseased plants was taken to be exposed into the sunlight further)

The implementation of Integrated Pest Management was coordinated by the Supervisor (Mr. Tunut, records of IPM training on 14 February 2012 at Amarta Jaya Plasma’s office which was attended by 20 participants is available (1 participant from KOPSA Mukti Lestari, Kayu Aro village on behalf of Tunut Effendi). Based on interviews with the smallholders at Block H 25 Bangun Desa KUD (Mr. Sangkot) Block G6 (Mr. Trimono, Sahroni and Nartin), it was acknowledged that the smallholders were capable in giving explanation about integrated pest management for example by using owls to control rats, turnera plant as the neetle caterpillar host plant and picking neetle caterpillar’s coocon.

Full Compliance

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.

The records of the recapitulation of agrochemical material use in year 2009-2011 is available. Information such as trade mark, active materials, active materials content, active material characteristic, registration number, target weeds/organisms are available in this document, for example at Mukti Lestari Village Coopertive Unit, it was known that the company has used pesticides:

No Trade Mark Active

Material Content

(%) Characteristic Registration No. Target Weeds

1. Ally 20 WG Methyl metsulfuron

20 Systemic RI. 837/4-2009/T wide-leaves weeds

2. Gramoxone 276 SL

Paraquat dichloride

27.6 Contact 800/Kompes/2011 1548/Kpts/SR.1403/2011

Narrow-leaves weeds, wide-leaves and young oil palm

Based on that document, it is known that the scheme smallholders group still use pesticides that contain paraquat active material until 2011, however, the use of this paraquat pesticide material tends to decline. For example in year 2009, total of use was 1,121 liter/year; in year 2010 total of use was 1,116 liter/year; in year 2011 total of use was 1,108 liter/year. There was a training of Oil palm Upkeep at Sibuak Jaya KUD, which has been realized on 12 April 2012 and was attended by 13 participants (The Head of SP2 KUD, the Secretary and The Treasurer, 9 Smallholder Group Officials and 1 Smallholder). Equipped training materials: Circle and harvesting path Spraying training which includes how to apply the pesticides correctly and properly. (the right time, the right tools, the right type, the right dose, the right target and obligation of the use of PPEs). The correct Spraying Workflow is tacked on the bulletin board of KUD. Concerning the use of pesticides, one of the scheme managers acknowledged that the company has persuasively invites the scheme smallholders to use agrochemicals materials from the company such as what has been done to other agrochemicals (fertiliser), however this effort is still continuously performed by the company along with this effort, the company will continue to monitor the use of pesticide with contains paraquat active material through the supervision of trainings regarding the procedures of the applicator safety use and the environment. The scheme smallholders group in cooperation with the company have compiled the list of pesticides which provides the information of target weeds/pest, dosage, procedure and time of use. In addition to it, the company and the scheme smallholders group have also compiled the program of training on integrated pest management to the community. Prior to storaging, the used pesticide packaging will be washed first according to the rules listed on the label. After washing, this packaging waste is transported into the hazardous waste storage of the smallholders’ estates, then further it will be returned to the suppliers, for example the submission of packaging waste from Sibuak Jaya on 29 May 2012 in


ASSESSMENT REPORT


the form of: Gramoxone cans (20 liter) 4 pieces, Ally bottles 13 pieces. The minutes of the submission of pesticides packaging to PT. Rolimex Pekan Baru on 4 June 2012 in the form of Gramoxone cans (20 liter) 59 pieces, Ally bottles 257 pieces, Round up 39 pieces, Starene 329 bottles from KUDs at Sungai Tapung Plasma and Amarta Jaya Plasma is available. Based on fields and documents observations, it was known that the case of pesticide poisoning has never been known to occur in the work area of AJYP and STPA. Results of periodic examinations for pesticide applicator which at least be conducted once in a year is available. Check up is conducted by the company’s doctor. This Check up includes the examination of weight, height, blood pressure, pulse rate, the worker’s complaints, result of check up, and recommendations. For example check up of November 2011 on behalf of Riswadi, Weight 45 Kg, Height 161 Cm, Blood Pressure 120/70 mmHg, pulse rate 60/minute, worker’s complaint (none), result of check-up Fit, recommendations (none) by Doctor Aurora Rizky B. Check-up in year 2011 which is based on the Medical Check-Up of Bangun Desa KUD’s workers, compiled by the Secretary of Guding Commitee of Occupational Health and Safety and endorsed by the Chairman of KUD and STPA Manager which was scheduled to be done in December 2012 for the spraying workers is available. Based on the interview with the spraying workers (Susanto and Joni) at Block G6 Sibuak Jaya, it was acknowledged that latest medical check-up was conducted in November 2011. Evidence of limited pesticides training which was conducted by the Commission of Pesticide of Pekan Baru Province in 09 November 2011 and attended by 121 participants from all KUDs (Susanto and Joni Ardiansyah who are Sibuak Jaya’s spraying operators) is available. Certificate of training on behalf of Suryadi No. 893.3/Set-KP3/364/2012 which issued by the Daily Chairman of Pesticide and Fertiliser Monitoring Commission on 2 February 2012 and the evidence of the trainings of limited pesticide usage, fit and proper pesticide usage, pesticide storage and disposal of waste, pesticide waste minimizing by the Commission of Pesticide of Riau Province on 10 April 2012 in the form of attendance list are available. Attended by 150 participants including the representatives of all KUD (the spraying operators of Sibuak Jaya KUD: Alfian, Sakirman, Sarip and Bambang Suryo Priyono; Mukti Lestari’s operator: Margiso, Karsono, Catur Yunanto, Suyetno and Suparman). KUDs obtain those pesticides from agricultural facilities shops, for example in Mukti Lestari KUD: Purchase from Yudinda Shop Bangkinang – Petapahan Km. 19 on 2/04/2012, type of goods: Gramoxone 40 liters (2 cans) and Ally as much as 2 Kg (8 bottles) and and purchase to Sahabat Abadi shop on 17/02/2012, type of goods Gramoxone 20 liters (1 can) and Ally 1 Kg (1 bottle). There are minutes of personal protective equipments submission for spraying workers on 1 November 2011 which was held at Mukti Lestari KUD in the form of Apron, Goggles, Mask, Boots, Rubber gloves to 5 workers. Based on field visits to spraying team’s personal protective equipments storage, these equipments were found in a proper condition.

Full Compliance

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

In AJYP and STPA, documents on procedures for the handling and control of various occupational accident risks are available, such as: 1. FFB harvesting procedures contained in Document No. TK/KUD-ML/TM/01 which describes the environmental and

OHS aspects regarding incident of being hit by FFB/frond, electrocution, strike by spines, strike by sickle and the ways these accidents can be controlled by the use of Personal Protective Equipment, e.g boots, gloves/rubber grip.

2. Document No. TK/KUD-ML/TM/07 which describes the cleaning and washing processes in the management of used pesticides packaging and used fertilizer sacks.

3. First Aid Emergency with document No. TK/KUD-ML/TM/08 that describes the occupational accident and its management e.g accidents resulting in injury/fracture.

4. The safety work procedures of circle and harvesting path upkeep as contained in document TK/KUD-ML/TM/04 which describes how spraying should be carried out in the direction of the wind, how to evenly spray the palm circle to a 2 meter radius with knapsack spraying equipment, environmental and OHS aspects with emphasis for not contaminating the water source with the sprayed chemicals, PPEs to be used, such as, mask, goggles, gloves, apron and boots.

Oil palm upkeep Training is available, among others:

At Sibuak Jaya KUD, counseling was planned in February and was realized on 12 April 2012, attended by The


ASSESSMENT REPORT


Head of SP2 KUD, the Secretary and The Treasurer, 9 Smallholder Group officials and 1 Smallholder). Equipped with training materials such as Circle and Harvesting path Spraying which includes how to apply the pesticides correctly and properly. (The right time, the right tools, the right type, the right dose, the right target and obligation of the use of PPEs), Manuring Methods (Right method, right time, right type and right dosage), fertiliser lacking symptoms and photos of activities documentation are also available.

Records of Oil Plam Upkeep training is available: 1. Manuring Methods (Right method, right time, right type and right dosage), fertiliizer lacking symptoms, on 07

December 2011, attended by 12 smallholders and photos of activities documentation are available. 2. Oil Palm Upkeep Counseling at Bangun Desa KUD, was planned in May 2012 and was already realized on

15/03/2012, attended by 10 smallholders and equipped with training material that includes the spraying of harvesting path and circle and fit-and-proper TPH, requirements of pruning, frond stacking.

3. FFB quality improvement was planned to be done in March 2012 and was already realized on 04 January 2012, attended by 15 participants (attended by 2 KUD Officials, 11 Smallholders, and 1 Supervisor). Equipped with training material that includes the disadvantage of unripe FFB harvesting, raw fruit criteria, too-ripe fruit, ripe fruit and empty bunch, suitable and proper harvesting and photos of activities documentation are available.

The Structure of Emergency Response Activities which is chaired by Mr. M.N Singgih that consists of evacuation team (Mr. Tholib and Bambang), Emergency Response Handling Team (8 members), Identification team (Mr. Faisal Nasution), Security (Mr. Yadi and Suratmin), Transportation (Mr. Bejo and Doni), First Aid Emergency (Mr. Surahman and Mrs. Siti), Communication (Mr. Zainal Abidin and Mrs. Fatimah) is available. Procedures of fire emergency response, earth quake and occupational accidents which is put on the bulletin board of KUD and accessible for public use are available. The Lay Out of Emergency Response is available at KUD office and evacuation routes. Based on field visits and interview with smallholders at Block G6 (Mr. Trimono) member of Sibuak Jaya KUD and at Block H25 (Mr. Sangkot), it was known that the smallholders understand the handling of occupational accidents by making use the available first aid boxes and conduct further aid to the nearest clinic. The RJP scheme smallholders advisor has initiatively conducted the supervision of Occupational Accident Report Form (1 x 24 hours), the Accidents Investigation Report, Recapitulation of Accident Reports and Follow-Up Recommendation of the results of Occupational Accident Reports have been given to each KUD to be filled according to accidents that occur in the workplace of each KUDs. Yearly recapitulation that records the incidents per month is available, for example at Mukti Lestari KUD in May 2012, number of worker, column c states the number of accident (zero) and the number of days lost (0) day. Records of Occupational Health and Safety Officers P2K3 (Secretary of the Guiding Commitee of Occupational Health and Safety) meeting to deliver the socialization of proper and safety work, flowchart and stage of work on 09 July 2011 at Mukti Lestari KUD which was attended by 5 smallholder group officials, 1 smallholder and 2 KUD officials and 1 supervisor (Foreman) and presented by the Secretary of P2K3 (Faisal Nasution) is available. The invitation of KUD and P2K3 meeting for 14 April 2012 is available and the document of meeting results No. doc 02/P2K3/AJYP-KUD/IV/2012 that discusses 8 topics (P2K3 Work Program, PPE, Environmental Hygiene, Safety Work, Work Stages, First Aid Bag completeness and Training of fire emergency response which was attended by 19 participants (assistant of scheme, KUD Official and P2K3 Secretary) is available. Minutes of PPE submission are available, as in Bangun Desa KUD, among others: 1. Submission to transportation workers and chemical spraying workers on 11 July 2010 at Bangun Desa KUD in the

form of Safety shoes and gloves to 42 transportation workers and Apron, Goggles, Mask, Boots, Rubber Gloves to 7 chemical spraying workers.

2. Submission to loose fruit workers and harvester on 4 July 2010 at Bangun Desa KUD in the form of Safety Shoes and Gloves to 41 loose fruit workers and Goggles, Safety shoes, Safety cover abd Helmet to 41 harvesting workers.

3. Submission to transport workers on 09 July 2010 at Bangun Desa KUD in the form of Safety Shoes and Gloves to 33 workers


ASSESSMENT REPORT


4. Monthly checklist of First Aid boxes is available, latest update in May 2012. 5. Minutes of First Aid boxes supervision to 8 Supervisors on 02 November 2011 at AJYP office is available. During the field visit to Block G-06 (Sibuak Jaya KUD), a harvester was found wearing boots that were already damaged and this could be a potential risk of accident at work. Non-Conformance see CAR.2010.02

Minor 4.7.4 Non-Conformance see CAR.2010.02 with Minor Category.

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

Agronomy Tehnical Counseling Request Letter No. 02/KUD-SJ/I/2012 to RJP from the Head of KUD on 08 January 2012 concerning the trainings needed by the smallholders, tehnical understanding of FFB tranportation road upkeep, understanding of Replanting Fund, FFB quality improvement, plants upkeep is available. The training participants identification data created on 13/04/2012, examined by the Assistant of training and approved by the Scheme Manager is available, among others: The Identification of Plants Upkeep Training with recommended number of participants is 13 (KUD management, smallholder group official and smallholder) Counseling program between Sibuak Jaya KUD with RJP partner company in year 2012 that describes the types of training is available, such as: 1. Road upkeep: Counseling was planned in May 2012 and has been realized on 17 May 2012 at the hall of Sibuak

Jaya KUD which was attended by 15 participants (The Head of SP2 KUD, the Secretary, the Treasurer, 10 Smallholder Group Official, Upkeep Supervisor and Production Supervisor). Equipped with training material that includes the manual and tehnical road upkeep training, photos of training documentation are also available.

2. Oil Palm Upkeep Counseling at Sibuak Jaya KUD was planned to be done in February 2012 and has been realized on 12 April 2012 which was attended by The Head of SP2 KUD, the Secretary, the Treasurer, 10 Smallholder Group Official, and 1 Smallholder. Equipped with training material that includes the Harvesting path and Circle Spraying which covers the fit and proper pesticide application (the right time, the right tools, the right type, the right dose, the right target and obligation of the use of PPEs), Manuring methods (the right time, the right tools, the right type, the right dose), fertiliser lacking symptoms, and photos of activities documentation are available.

3. Replanting program was planned to be done in April 2012 and has been realized on 12 April 2012, attended by KUD management, smallholder group official and smallholder. Equipped with training materials that include fund raising scheme, product requirements (replanting savings), the implementation of agreement, the legal aspect of replanting program, role of each party (Company, KUD, Insurance and Bank), estimation of saving value per plots, amount of saving deduction and photos of activities documentation are available.

4. FFB quality improvement was planned to be done in March 2012 and has been realized on 09 March 2012, attended by 16 participants (attended by 1 KUD Official, 13 Smallholder Group Officials, and 2 Smallholders) equipped with training material that includes the disadvantages of rare fruit harvesting, raw fruit criteria, too-ripe fruit, ripe fruit and empty bunch, fit and proper harvesting and photos of activities documentation are available.

The Occupational Health and Safety related Counseling Request Letter No. 01/KUD-SJ/I/2012 from the Head of KUD on 05 January 2012 to RJP concerning the trainings required by the smallholders is available, inter alia:

1. First Aid Emergency Response 2. Oil palm Manuring 3. Integrated Pest Management 4. Fire Fighting Training 5. Trainings held by the Commission of Pesticide.

The Occupational Health and Safety Training at Sibuak Jaya AJYP with RJP patner company in year 2012 is available, with types of training inter alia:

1. The First Aid Emergency Response training was planned to be done in March 2012. 2. Oil palm manuring was planned to be done in September 2012 3. Integrated Pest Management was planned to be done in January 2012 and was already realized on 14

February 2012, attended by 20 participants.


ASSESSMENT REPORT


4. The Fire Fighting Training/Simulation was planned to be done on February 2012 and was already realized on 08 March 2012, attended by 20 participants (3 representatives from Sibuak Jaya/SP2 KUD, equipped with Land Fire Simulation Scheme, the understanding of Land Fire Handling, availability of equipments, fire handling, evacuation handling and investigation.

5. Trainings held by The Commission of Pesticide was planned to be done in April 2012 and was already realized on 10 April 2012 at Bangun Desa and was attended by 150 participants (4 Representatives from Sibuak Jaya KUD).

6. Occupational Health and Safety Expert Training for Amarta Jaya Plasma on behalf of Faisal Nasution as AJYP Agronomy Assistant who attended the training on 15-24 February 2010 held by PT. Arparindo Pratama equipped by General OHS Expert Certificate from the Directorate General of Labour Supervision Development No. 10.3937/AK3-U/DJPPK-P2K/III/2010.

7. Company Hygiene and Occupational Health (Hyperkes) certificate of Dr. Mahadi Damanik from the Head of Research Development and Information of RI Labour Ministry for the training on 20 until 30 2005, No. 14400/DH-I/05.

8. Company Hygiene and Occupational Health (Hyperkes) certificate of Dr. Noverma T. L. Manik from the Head of Research Development and Information of RI Labour Ministry for the training on 19 until 23 April 2012, No. 22.835/DH-I/10.

Full Compliance

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.

The document that describes the assessment of institutional and environment impact related to the presence of PIR – TRANS of PT. Ramajaya Pramukti which was integrated in the EIA document of PT. Ramajaya Pramukti in year 1993 is available. That EIA documentis also available at Amartha Jaya Plasma. Estate Development and Management with PIR Trans pattern has also been socialized to the smallholders among others through integrated trainings and continuous coaching and counseling. There were also survey documents of the condition of Social, Economy, Culture and the Perceptions of people who live around RJP plantation/mill, location: Petapahan village, Pantai Cermin village, Sari Galuh Village, Sukamaju Village, Koto Bangun village, Cinta Damai Village, Kotabaru village, Beringin Lestari village, Sibuat village, Sei Lembu Makmur village, Kinantan village and Muara Mahat Baru village. These documents have been socialized to the smallholder groups on 29 July 2010 (List of Paricipants is available). There was also EIA Document of RJP year 2011, based on the Decree of the Head of Environment Body of Kampar District No. Kpts/BLH/Dok/2011/139, on 29 September 2011 which has integrated the PIR Trans scheme activities of Sungai Tapung Plasma (STPA). In the preparation of its EIA Document, RJP has involved the community/smallholders. In data collecting process related to the aspects of Social-Economic-cultural, the community/smallholder has been involved as the source of information. Information from the community is collected by using semi-structured questionares and method of Rapid Rural Appraisal. In the preparation of its EIA document in year 2011, RJP has involved the community as the source of information for data of Social-Economic-Culture Environment and Community’s Health Components through interviews. Similarly, the survey documents of condition of Social, Economic, Culture and Community’s perception in villages around RJP, Location: Petapahan village, Pantai Cermin village, Sari Galuh Village, Sukamaju Village, Koto Bangun village, Cinta Damai Village, Kotabaru village, Beringin Lestari village, Sibuat village, Sei Lembu Makmur village, Kinantan village and Muara Mahat Baru village have involved not only the community but also the smallholders and


ASSESSMENT REPORT


these documents were already socialized to the smallholder groups on 29 July 2012 (List of attendance is available). The Document of the Implementation Report of Environmental Management Plan and Environmental Monitoring Plan Period Semester II/2011 of PT. Rajamaya Pramukti – Tapung Hilir Sub-District, Kampar District, Riau Province is available. This document is also available at the Scheme Smallholder Institution at Amartha Jaya Plasma office, Kenantan village, Tapung Sub-District and Sungai Tapung Plasma (STPA) office, Baru village, Tapung Hilir Sub-district, Kampar District, Riau Province. The Matrix of Social Impact Monitoring Plan in Year 2011 and Social Management Plan (RKS) year 2011 at RJP are available. The records of implementation and reporting of environment impact management at smallholder institution are also available at the office of Amartha Jaya Plasma, Kenantan village, Tapung Sub-district, Kampar District, Riau Province and the office of Sungai Tapung Plasma (STPA), Baru village, Tapung Hilir Sub-district, Kampar District, Riau Province.

Full Compliance

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.

Based on results of interview with scheme smallholders at Sibuak Jaya KUD (Block G9), Mukti Lestari KUD, Berkat Lestari KUD and Bangun Desa KUD (Block H25 with Mr. Sangkot) showed that this smallholder was able to mention types of protected fauna for example: white throated kingfisher and leopard cat. Posters of protected fauna were installed at public places e.g at KUD’s office. Each KUD has 1 officer who is responsible to hold training to his/her members related to the management of protected species including its conflict mitigation. The Decree of HCV management officer assignment – at Amartha Jaya Plasma (AJYP) area for 5 officers which were issued by each of KUD’s Head, on 3 December 2011 is available. There was also Decree of HCV Management Officer assignment – at Sungai Tapung Plasma area for 5 officers issued by each KUD’s Head on 3 December 2011. There is an availability of a quarterly program from RJP regarding the socialization to the community, while the officers at each KUD do it incidentally. The HCV Identification Report Document of RJP (Sungai Tapung Plasma) which was held by the internal party in 2011 and compiled by Dr. Kunkun J Gurmaya (Approved RSPO HCV Assessor), Dede M. Nasir (Aproved RSPO HCV Assessor), Firmansyah (Participant HCV Network), Yosaphat AR. (Approved RSPO HCV Assessor) and Laurentinus V. Baskoro and has been reviewed by Dr. Ir. Nyoto Santoso is available. Types of HCV found were HCV 1.1 (Potential), HCV 1.2 (white throated kingfisher; Halycyon smyrnensis, leopard cat; Felis bengalinsis), HCV 4.1 (Potential) and HCV 6. The Management and Monitoring Plan of High Conservation Value for Sungai Tapung Plasma Unit year 2012 includes the activities of installation/upkeep of warning boards, Installation and Upkeep of HCV boundary poles, Socialization to employee and community, rehabilitation of riparian (Plantation and Upkeep), Species Monitoring and Patrol. The Realization of HCV Area Monitoring in year 2012 that includes the HCV 1.1 and 4.1 areas (Block I23 Palambeyan River, Block D10 Sepakat River, Block F20 Bangso River is available.

Full Compliance

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

The agrochemical waste management plan which is listed in the Stages of Fertiliser Sacks and Used Pesticides Packaging Cleaning and Washing with document No. TK/KUD-BD/TM/07 and the Flowchart which describes the handling of fertiliser sacks and used pesticides packaging are available. Stages of Fertiliser Sacks and Used Pesticides Packaging Cleaning and Washing: collect all the packaging, use the PPEs, wash at the places that have been provided, wash them until clean (3-time washing for pesticide and 1-time washing for fertiliser sack), the washing waste water is stored and will be re-used for spraying process, the cleaned pesticide packaging will be sent to Sungai Tapung Estate every 2 months to be distributed to the pesticides suppliers, for example the submission of pesticides packaging from Berkat Lestari KUD on 4 June 2012 in the form of Graxomone used cans (20 liters) 17 pieces, Ally bottle 68 pieces, Round Up Can 10 pieces and starene bottle 100 pieces. Fertiliser sacks semester 1 year 2012, the total of fertiliser sack


ASSESSMENT REPORT


3,782 pieces which have been cleaned were re-used as fruit loose layer. Based on the interviews with the smallholders at Block H25 STPA Bangun Desa KUD and G6 AJYP Sibuak Jaya KUD, it was known that those smallholders understood the agrochemical waste disposal methods by performing the 3-time packaging washing and the washing waste water is re-used for field application. Based on field visits and Interviews with one of the spraying workers at the place of used pesticide packaging and spraying equipments washing (Bangun Desa KUD), it was known that the workers were able to perform the fit and proper pesticide packaging washing method according to the guidance listed on the label (3-time cleaned wash) and the used water is chanelled into reservoir to be used for field application further. Based on interview with AJYP and STPA Scheme smallholders Staff, there was no complaint for the community regarding the disposal of waste and its completion. If there are complaints from the community regarding those matters, all will be recorded in communication book.

Full Compliance

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

Based on observations at field, all STPA and AJYP smallholders have used the wheelbarrows at every harvesting activity to transport FFB to collection point. The KUD has maximized the FFB transport management from collection point to Palm Oil Mill efficiently.

Full Compliance

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.

Based on the age of the plants, replanting plan will be carried out in 2018 for Sibuak Jaya KUD, 2023 for Bangun Desa KUD and Mukti Lestari KUD. The company and scheme smallholder institution has developed “replanting saving” program for the members of smallholder groups began in December 2010. The implementation of this replanting program technically will be done by the scheme partner (RJP). In accordance with the Technical Guidelines of Oil Palm Cultivation of Sinar Mas (Management Committee Agronomy and research) point 5 regarding the land clearing and planting document No. SMA/MCAR/05/05-07 stated that land clearing must use the zero-burning principle The Land Fire Handling Flow Chart is available with procedures as follow: Any employee who finds out the spots of fire will directly perform the initial fire fighting, if it is not successful then reporting to the KUD officials will be conducted, contacting the emergency response team and relevant agencies, the emergency response team prepares the team and the equipments and directly goes to the fire location, the team coordinate regarding the location area, methods of firefighting, the division of personnel, after the fire is put off, they will perform an investigation and report the case to the relevant agencies. The flow chart of fire handling has been socialized to the community by sticking the procedures at the KUD’s bulletin board, as seen at Sibuak Jaya KUD. Based on results of interview with the smallholders at Block G6 Sibuak Jaya KUD (Mr. Trimono, Mr. Sahroni and Mr. Nartin) and a smallholder at Block H25 Bangun Desa KUD (Mr. Sangkot), it was known that those smallholders are capable in understanding the procedures of fire handling and prohibited things that may caused fires such as trash burning and dispose of cigarette stub carelessly. Based on List of inventory and fire fighting equipments checklist and field observations, it was known that findings at Sibuak Jaya KUD and Berkat Lestari KUD showed some fire fighting equipments such as: fire striker, spray keff, axe, hoe, bucket, burlap sacks, shovel and fire extinguisher were in properly-functioned condition.

Full Compliance

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

The STPA and AJYP has owned the list of results document of Environment Aspects Identification and Its handling at the smallholder’s estate which conducted together by the Scheme Smallholders Assistant, RJP Environments staffs and KUD officials, this document describes the operational activities such as the activities of spraying equipments washing


ASSESSMENT REPORT


that produces the pesticide spraying equipments washing waste water and causes the soil contamination impact. Documents and plans to reduce pollution such as the installation of reservoir of spraying equipments washing waste available at each KUD of AJYP and STPA scheme smallholders’ estate. Based on visits to Sibuak Jaya KUD, there were findings of agrochemical packaging and spraying equipments washing location which are equipped by tank for agrochemical packaging washing waste water.

Full Compliance

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.

There were also survey documents of the condition of Social, Economy, Culture and the Perceptions of people who live around RJP estate/mill, location: Petapahan village, Pantai Cermin village, Sari Galuh Village, Sukamaju Village, Koto Bangun village, Cinta Damai Village, Kotabaru village, Beringin Lestari village, Sibuat village, Sei Lembu Makmur village, Kinantan village and Muara Mahat Baru village. These documents were already socialized to the smallholder groups on 29 July 2010 (List of Participants is available). Available documents; 1. Environmental Management and Monitoring Plan year 2012, includes the repairment of damaged roads at

Sarigaluh village and Plasma village, Environment Parameters Examination (Waste and Pollution) at Pantai Cermin village and Petapahan village, Improvement of Communication at Pantai Cermin, Sei Lembu, Makmur, Sibuak and Cinta Damai villages and also the development of Dragon Fruit business through CD program at Kayu Aro village.

2. The Social Management Realization which consists of company Heavy Equipments Support Recapitulation year 2010 and daily monitoring of sand and rocks (sirtu) support program year 2010.

3. Report of Social Management Plan (RKS) and Social Impact Monitoring Plan (RPS) of RJP (RRMM, RRME, RBKE, STPA, AJYP) year 2011.

The implementation of Impact Management in accordance with the EIA document is described the Report of Implementation Monitoring of Environmental Management Plan & Environmental Monitoring Plan. The Report of PT. Ramajaya Pramukti Semester II/2011 period is available. The Environmental Evaluation Document (DELH) of PT. Ramajaya Pramukti year 2011 is available, in accordance with the Decree of the Head of Environment Body of Kampar District No: Kpts/BLH/Dok/2011/139, on 29 September 2011. STPA has obtained the Environmental Evaluation Document (DELH) as the replacement of EIA document in year 2011 in accordance with the Decree of the Head of Environment Body of Kampar District No: Kpts/BLH/Dok/2011/139 regarding the Environmental Evaluation Document of Oil Palm of Smallholders Pattern and Scheme Smallholders of Rama Bhakti Estate I at Cinta Damai, Kota Bangun, Beringin Lestari, Kota Baru and Suka Maju villages, Tapung Hilir Sub-district, Kampar District by PT. Ramajaya Pramukti on 29 September 2011, The DELH scope of study is 8,488.79 ha which consists of RJP estate 2,903.79 Ha and Scheme Smallholders 5,585 Ha, however Sungai Tapung Plasma has compiled the Environmental Management and Monitoring Plan year 2012 which refers to the survey documents of the condition of Social, Economy, Culture and the Perceptions of people who live around PT. RJP plantation/mill in year 2010, that includes the repairment of damaged roads at Sarigaluh village and Plasma village, Environmental Parameters Examination (Waste and Pollution) at Pantai Cermin village and Petapahan village, Improvement of Communication at Pantai Cermin, Sei Lembu, Makmur, Sibuak and Cinta Damai villages and also the development of Dragon Fruit business through CD program at Kayu Aro village.

Full Compliance

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.

The procedure of conducting the communication and consultation with local community is regulated in the Document No 4/1/2009 of Communication and Consultation with the Stakeholders. This procedure is conducted both externally and internally. The external communication and consultation are involving all respective stakeholders including the people


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living in the area around the estate, local authorities, respective institutions, workers’ union, and Non-Government Organization (NGO). The communication and consultation activity done internally is covering the following subject matters: setting up the process and communication, both regularly and incidentally, of the meeting with smallholders groups; the meeting with all employees; the meeting with workers unions; training handbook, video, notice board; monthly and weekly reports, including financial report; and suggestion box. These communication and consultation activities are built to work both ways. The following documentations serve as the record evidences of the communication and consultation activity conducted with the community: 1. Annual Meeting of the Members (RAT) held on March 2011 by the Sibuak Jaya KUD (KUD) of Amarta Jaya Plasma

Estate, in which the Accountability Report for the Fiscal Year of 2011 was delivered by the board members. 2. The Annual Meeting of the Members of Cinta Damai KUD of Sungai Tapung Plasma Estate for the Fiscal Year of

2011 was held on 25 February 2012. 3. The counseling and dissemination activities, both formally and non formally, are conducted periodically. The records of the activities done periodically between smallholders’ institutions and their respective members in Berkat Lestari KUD are as follow; 1. Regular meetings are held bi-monthly. List of attendance is documented in the Attendance List Log Book for

Meetings for the year 2007 up to 2011, kept by Berkat Lestari KUD. 2. The Annual Meeting of Members is held every year to deliver the management’s accountability report, the

preparation of action plans for the following year, and the distribution of dividend (SHU) of the current year. The respective event for year 2012 was held on 31 March 2012.

The records of the activities done periodically between smallholders’ institutions and their respective members in Bangun Desa KUD are as follow; 1. The regular meetings are held monthly by the Bangun Desa KUD, such as the one held on 1 June 2012 (attended

by 40 participants, as documented in the List of Attendance of the Meeting). 2. The Annual Meeting of the Members (RAT) is held every year to deliver the management’s accountability report, the

preparation of the action plans for the following year, and the distribution of the KUD dividend (SHU) of the current year. The respective event for year 2012 was held on 29 March 2012.

The records are available as the evidence of the communities aspirations and their follow-ups that have been made available in the following forms: 1. Suggestion boxes that are placed in every KUD office. 2. Complaints Log Book, for example there was a document showing that on 17 July 2011 Amarta Jaya Plasma has

received an application for funding supports in relation to the commemoration of the 66th Anniversary of Indonesian Independence Day. A funding support of IDR 500,000 granted on 16 August 2011 served as an answer to that request. Another sample case available for reference was the one submitted to the management of Sungai Tapung Plasma, requesting for an electrical installation repair, dated 6 January 2012.

The assigned officials responsible for preparing and conducting the consultation and communication activities with the stakeholders are the Heads of each KUDs (KUD), the following tasks: 1. Preparing the Operational Action Plans. 2. Initiating monthly regular action meetings. 3. Assuring that every decision resulted from all members’ agreement is being adhered to as planned. 4. Working closely with both the company and other parties, and coordinating the actions respectively. 5. Agreeing and signing the working agreement with the company. 6. Providing financial support to other parties when necessary depending on their needs. The Procedure for Communication and Problem Management in Bangun Desa, Sibuak Jaya, Berkat Lestari and Mukti Lestari KUDs (point 4; Duty and Responsibility) is describing the following matters: 1. The Secretary of KUD is assigned to monitor the suggestion box and to compile the suggestions submitted in the

communication logbook. He/she is also responsible for setting up the response plan for all incoming suggestions/communications, as well as preparing for a meeting plan whenever necessary, to deal with all


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suggestions/petitions/complaints by coordinating it with the board members of KUD. Another task assigned for the secretary is to facilitate and to keep a documentation of the meetings and negotiations conducted for problem settlement.

2. The Head of KUD is responsible for formulating, ensuring, and assuring the responses are available to accommodate every suggestion/petition/complaint received and to also do the same for the actions taken to settle all the problems, both internally and externally.

Full Compliance

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

There is a Procedure for Communication and Problem Management for Bangun Desa KUD, issued on 27 December 2009, in which it is stated that the Flow of Communication and Problem Management is as follow

Incoming letters are received (information queries, aspirations/request for assistance, and all incoming letters other than complaints)

Recording them in communication logbook.

Supply them with the corresponding response collected from the person-in-charge of communication of KUD. The responses may come in one of the following two forms: (a) Information query is granted following an agreement reached by all respective and authorized parties, among others are the regulatory body/cooperatives agency, relevant government institutions, Partner Company, and other entities. (b) Unable to supply responses.

Response letter. The complaints received were summarized and documented in the Complaint Log Book of Bangun Desa KUD that is detailing that the Incoming Report will specify the Date of the Letter, Name of the Complainant, Address, Content of Letter, the person receiving it, the follow-up, date, action taken, progress status, and the Person in Charge. For example, there was a document specifying a complaint addressed by Mr. Suradi regarding the ditch water that overflowed into the street when raining. This complaint was received by M. Nuh, and it was then taken care of by cleaning up the ditch on 11 May 2012, overseen by the person-in-charge from the officials of KUD. There is a mechanism of conflict settlement in the Smallholders’ Institution, in which it is specified that there are several stages of settlement, which are on the level of Smallholders’ Group, KUDs, and Communication Forum of Plasma Smallholders. A sample case of conflict settlement available for reference is the one occurred between the harvesters and the land owner over the volume of harvest in Block B15 (Mr. Riaman), which was put into an end in the assistance of the Security Initiatives of Berkat Lestari KUD on April 2012.

Full Compliance

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 result of the interview with the smallholders, KUD officials, and also the result of public consultation both confirmed that there was no case of the loss of legal rights or traditional rights for the plasma development, there has also never occurred the claim of plasma land by other party and the smallholders are already receiving their respective shares of the land (plots), confirmed in the Certificate of Ownership (SHM).

Full Compliance

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

Based on the interview with the manager of RJP scheme smallholders, it was revealed that the KUDs (KUD) in Amarta Jaya Plasma and in Sungai Tapung Plasma are employing the administration clerks under the Specified Time Employment Agreement (PKWT), whose wages are determined based on the decision of Annual Meeting of Members (RAT), such as the wages payment for May 2012; 1. Sibuak Jaya KUD employed 9 people to each work as Coordinator for Fertilization and Upkeep for IDR 1,000,000;

as Grading Witness (FFB quality sorting process) for IDR 1,300,000; and as Book Keeper for IDR 1,300,000. 2. KOPSA Mukti Lestari employed 9 people for the positions of production administration clerk for IDR 1,000,000;

Computer Operator for IDR 1,000,000; and the Security Guard for IDR 1,000,000. 3. Berkat Lestari KUD employed 13 people for the positions of Book Keeper for Ro 1,000,000; Road Upkeep Worker


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for IDR 850,000; and Transport Supervisor for IDR 1,000,000. 4. There is a document of payroll list for the officials and employees in Bangun Desa KUD that lists down the payment

for 18 workers, including the one for production clerk of IDR 1,400,000; and for grading clerk of IDR 1,300,000. Each KUD in STPA area is not employing people full time, instead, Specified Time Employment Agreement (PKWT) is applied, as seen in the following cases: 1. Sibuak Jaya KUD, that employed Fajar Muttaqin using PKWT document no. 08/KUD SIBUAK JAYA/PWT/01/2011,

for the position of coordinator for fertilization and upkeep with employment period from 6 January 2011 until 31 December 2013. The benefits and the amount of wages are referring to the result of Annual Meeting of the Members (RAT) of Sibuak Jaya KUD.

2. KOPSA Mukti Lestari, employed Joko Nursuswanto using PKWT document No.04/KUD MUKTI LESTARI/PWT/12/2011, dated 4 January 2011, for the position of Road Upkeep worker, starting from 4 January 2011 until 31 December 2013.

3. Bina Lestari KUD, that employed Erni Pujiati using PKWT document No.03/KUD-BL/PKWT/I/201, issued on 2 January 2011 for the position of Book Keeper, with employment period started on 2 January 2011 and will end upon completion of its period on 31 December 2013.

4. Bangun desa KUD, that employed Wahyudi using the PKWT document No.02/KUD-BD/SPK/I/2011 issued on 10 May 2011, for the position of production office clerk (bookkeeping record for production process). The PKWT is valid from 10 May 2011 until 10 May 2013.

Full Compliance

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.

Available evidence showed that workers in Sibuak Jaya KUD, such as Grading workers, are joining sports club and youth organization (karang taruna) in Sibuak Village, in which some of them are even sitting as officials. There is a Circular Letter issued by the Head of Mukti Lestari KUD No. 4/KUD MLL-SE/01/2011 dated 1 January 2011 that is explaining the freedom of association, assembly and of speech for all members and employees of KOPSA Mukti Lestari. There is a Circular Letter issued by the Head of Berkat Lestari KUD No.4/KUD BL-SE/01/2011 dated 2 January 2011 that is explaining the freedom of association, assembly and of speech for all members and employees of Berkat Lestari KUD. The result of the interview with Grading workers in Bangun desa KUD also confirmed that there are no restrictions for all workers to be joining a workers’ union.

Full Compliance

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.

A circular letter specifying the minimum age requirement is issued by the KUD and is addressed to every smallholder group leader. For example; Mukti Lestari KUD of Amarta Jaya Plasma issued the same letter on 1 January 2011 No. 3/KUD MLL-SE/01/2011 specifying the minimum age requirement addressed to all smallholder group leaders, all members and employees of KUD. The letter stated that in compliance with the Statute No. 13 Year 2003 on Employment, regarding the restrictions on employing minors, it has been decided that for every worker and employee recruitment process in Makmur Lestari KUD, the minimum age requirement is set to be 18 years old. For example; the 2011 list of employees’ biodata in Sungai Tapung Plasma Estate showed that a worker named Suhemi was 18 years old when being employed on 2 January 2011. Another sample case is of a worker named R. Guntur Sumarlin, who was 24 years old when being employed by Amarta Jaya Plasma Estate on 4 January 2011.

Full Compliance

6.8 Any form of discrimination based on race, caste, national origin, religion, disability, gender, sexual orientation,


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union membership, political affiliation, or age, is prohibited.

A circular letter specifying on the equal opportunity and treatment in employment was issued by KUD and was addressed to all smallholder group leaders. For example, Makmur Lestari KUD Amarta Jaya Plasma issued the letter regarding the equal opportunity and treatment in employment on 1 January 2011 No. 2/KUD MLL-SE/01/2011 that was addressed to all smallholder group leaders, members and employees of KUD. The letter specified the following: 1. Equal opportunity and treatment in employment shall be applied to all types of work regardless of ethnic origin,

religion, racial, and gender. 2. Fair and equitable treatment in all aspects of personnel management in and around Makmur Lestari KUD

workplace. There are documents available for reference to show that Amarta Jaya Plasma has applied this equal treatment policy, such as recorded in the list of employee biodata in Mukti Lestari KUD on 3 January 2012, the detail of which showed that employees are of different origin, e.g. Aswani Edi S from Tebing Tinggi, Suwelo Ardi from Yogyakarta, and Edi Dwi Susanto from Riau.

Full Compliance

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.

A circular letter specifying on the prevention of sexual harassment and all forms of violent behavior against women, as well as on the protection of women’s reproduction was issued by the KUD and was address to all smallholders’ group leaders. For example; Makmur Lestari KUD of Amarta Jaya Plasma issued the same letter on 2 January 2011 No. 14/KUD ML-SE/01/2011regarding the prevention of sexual harassment and all forms of violent behavior against women, as well as the protection of women’s reproduction and addressed it to all smallholder group leaders, members, and employees of KUD. The letter has put it clearly that Makmur Lestari KUD and its elements have all committed to providing the workplace that is harmonious and free from all kinds if discrimination, including sexual harassment and violent behavior against women. This has been, therefore, the reason why Makmur Lestari KUD has applied such policy. Sample on how to handle any reported sexual harassment is listed down as follows; A. The procedures to handling reported sexual harassment in Sibuak Jaya Village, Amarta Jaya estate:

1. In any case of sexual harassment, the injured party may file a report to KUD or to head of neighborhood (RT/RW), both in written and in verbal form. The report is then analyzed to decide what action should be taken upon it.

2. Assistant, supervisor, head of neighborhood, head of village, or KUD officials may offer necessary assistance to the victim.

3. Head of village, head of neighborhood and KUD shall file a report to the village authority as a follow-up to the aforementioned report of abuse.

4. The village authority shall then conduct an investigation and gather all related evidence. 5. Once the offender is proven guilty, necessary and appropriate sanction shall be taken by the village authority,

based on village regulations or based on the applicable law.

Full Compliance

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

As recorded in the Complaint Log Book kept by Amarta Jaya Plasma Office for the period of January 2010 – April 2012, there were 3 complaints filed, processed and settled accordingly and no repetitive complaints are found. As recorded in the Complaint Log Book kept by Sungai Tapung Plasma Office for the period of January 2009 – April 2012, there were 18 complaints filed, processed and settled and no repetitive complaints are found. The gathered information and the interview done with the management of partner company (RJP) also confirmed that there are no repetitive complaints being filed. The FFB price information is monitored and updated closely using as reference the Result of Weekly Meeting FFB Price Determination held by Plantation Agency with the representatives from Companies, and Plantation Association of PIR -


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Trans (ASPEKPIR) of Riau Province. For example the meeting held on 5 June 2012 was to set up the period of 6 – 12 June 2012 and to expose the age classification of plants with price ranging from IDR 1,151.92 to IDR 1,610.25. There is an FFB payment receipt available for reference in the document of Payment for FFB of Scheme Smallholders Conversion Purchase in AJYP (Sibuak Jaya KUD and KOPSA Mukti Lestari) and in STPA (Berkat Lestari KUD and KUD) for the period of 21 April to 20 May 2012. The document is putting into details the cooperative name, weekly price setting, tonnage/weight for current period, gross income, smallholder income, debt (credit), the amount received (net income) and the payee account number. There are agreement documents available in two Scheme Smallholders Estates, i.e. Amartha Jaya Plasma (AJYP) and Sungai Tapung Plasma (STPA) in RJP work area. The samples are as follow: Amartha Jaya Plasma (AJYP)

A document of Mutual Working Agreement between PT. Ramajaya Pramukti and Participating Smallholders Cooperative in the area of Amartha Jaya Plasma (AJYP) in a Framework of Business Smallholder scheme of PIR Trans of PT. Ramajaya Pramukti. The agreement is, at its core, regulating the activities of estate management, estate upkeep, harvesting, and crops marketing system for oil palm FFB. All of these activities are interrelated and cannot be separated from one another (Article 1 paragraph 2). This agreement also sets out the rights and obligations of each party respectively.

An addendum to the Mutual Working Agreement between PT. Ramajaya Pramukti and Participating Smallholders Cooperative in a Framework of Business Smallholder scheme of PIR Trans of PT. Ramajaya Pramukti Number 01/SPK-RP/DL/V/2001, dated 9 September 2003. The essence of the agreement is to continue the cooperation or partnership in sale and purchase of FFB since smallholders’ bank loan has been fully paid.

Oil Palm Fertiliser Sale and Purchase Agreement for Scheme Smallholders Estate in Semester 1 Year 2012 No. 04/SPK/AJYP/KUD-MJ/II/2012.

An agreement on Replanting Savings Program in Smallholders Cooperatives of Sibuak Jaya, Sibuak Village, Number 016/PBR-328/RPLT/XII/2010, dated 9 December 2010. This agreement was signed by company representatives, KUD officials, Bank representative, and was witnessed by Head of Village.

A Document of FFB Transport Working No.029/SPK/KUD-SJ/V/2011 on 20 May 2011 between Sibuak Jaya KUD and the transporter company (CV Kabayan Bangkit) is valid from 20 May 2011 until 20 May 2014, covering the terms and conditions required for transport equipments used to deliver the FFB and loose fruits, contract payment, labor employment, sanctions, and dispute settlement.

A Document of Mutual Working Agreement No.001/KUD MUKTI LESTARI/3/2011/Trans TBS dated 1 March 2011 between KOPSA Mukti Lestari and the FFB transporter agent named Sugeng, residing in Kayu Aro Village, Tapung Subdistrict, Kampar District. The document describes the FFB is transported from Collection Point (TPH) to Ramarama POM; transporting terms and conditions and its provisions, and the payment period which is before the date 5th every month.

Sungai Tapung Plasma (STPA)

There is a sample document of Mutual Working Agreement between PT. Ramajaya Pramukti and Participating Smallholders Cooperative in the area of Sungai Tapung Plasma (STPA) in the Framework of Business Scheme smallholders of PIR Trans Project of PT. Ramajaya Pramukti, Number 01/SPK-RP/DL/IV/97, dated May 2001. The agreement is, at its core, regulating the activities of estate management, estate upkeep, harvesting, and marketing system for oil palm FFB. All of these activities are interrelated and cannot be separated from one another (Article 1 paragraph 2). This agreement also sets out the rights and obligations of each party respectively.

An addendum to the Mutual Working Agreement between PT. Ramajaya Pramukti and Participating Smallholders Cooperative in a Framework of Business Scheme smallholders of PIR Trans of PT. Ramajaya Pramukti Number 01/SPK-RP/DL/V/2007, dated 10 January 2007. The essence of the agreement is to continue the cooperation or Scheme smallholders in sale and purchase of FFB since smallholders’ bank loan has been fully paid.

There is sample of Sale and Purchase Agreement for Plasma Estate Oil Palm Fertiliser for Semester 1 Year 2012 No. 02/SPKSTPA/KUD-KT/I/2012, dated 2 January 2012 between PT. Ramajaya Pramukti and Mrl. Darmaji and Mr. Cahyono, the head and treasurer of Karya Tani KUD respectively.

An agreement on Replanting Savings Program in Karya Tani Oil Palm Smallholders Cooperative in Suka Maju Village, Number 334/BH/KDK.4/I/XI/1999, dated 23 June 2010.

A Mutual Working Agreement Document for FFB Transporting, No. 01/KBL/SPK/I/2011 on 3 January 2011 between


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Berkat Lestari KUD and the transporter agent (goes by the name Wendri Zein) is valid from 3 January 2011 until 31 December 2012, covering the terms and conditions required for transport equipments used to deliver the FFB and loose fruits, contract payment, labor employment, sanctions, and dispute settlement.

A Mutual Working Agreement Document for FFB Transporting, No. 01/KBL/SPK/I/2011 on 21 August 2011 between Bangun Desa KUD and the transporter coordinator (goes by the name of Suparman) is valid from 21 August 2011 until 21 February 2012, covering the terms and conditions required for transport equipments used to deliver the FFB and loose fruits, contract payment, labor employment, sanctions, and dispute settlement.

There are payment receipts available as written evidences for the contracts made by cooperatives in AJYP and STPA, such as:

Payment receipt for the mutual working agreement between Sibuak Jaya KUD and FFB transporter, as in the receipt dated 4 May 2012 for the period of 21 March 2012 until 20 April 2012, and receipt for payment done on 5 June 2012 for the period of 21 April 2012 until 20 May 2012. The payments were made on schedule to the business partners of Sibuak Jaya KUD.

Payment receipt for the mutual working agreement between KOPSA Mukti Lestari and FFB transporter, as in the receipt dated 7 May 2012 for the period of 21 March 2012 until 20 April 2012, and receipt for payment done on 6 June 2012 for the period of 21 April 2012 until 20 May 2012. The payments were made on schedule to the business partners of KOPSA Mukti Lestari.

Berkat Lestari KUD in STPA kept the documents of Payment Receipt for FFB Transport, which is payable monthly on schedule, such as the document for the period of January – May 2012. Sample of receipt available is the payment for FFB transport on 3 May 2012 for the amount of IDR 19,760,200.

There is a payment receipt for FFB transport on 3 May 2012 for payment period of 21 March – 20 April 2012, payable to transporter coordinator by the name of Suparman, specifying the transport load of 3,475.45 tonnes.

There is a document of credit installment scheme paid by the smallholders of Sibuak Jaya KUD, in Amartha Jaya Plasma (AJYP) to PT. Ramajaya Pramukti, such as the one made on May 2012 that covered the payment for multi-purpose loans given by a state-owned bank, payment for fertiliser discount of IDR 267,760,000; and replanting fee discount of IDR 991,124,732.

There is a document of credit installment scheme paid by the smallholders of KOPSA Mukti Lestari in Amartha Jaya Plasma (AJYP) to PT. Ramajaya Pramukti, such as the one made for the payment period of May 20122 that covered the payment for multi-purpose loan given by the state-owned bank, payment for fertiliser discount of IDR 4,227,220; and replanting fee discount of IDR 61,750,000.

There is a document of credit installment paid by the smallholders of Berkat Lestari KUD, Sungai Tapung Plasma (STPA) to PT. Ramajaya Pramukti, such as the one made for the payment period of May 2012 that covered the payment for replanting discount fee of IDR 65,200,000.

There is a document of a credit installment paid by the smallholders of Sungai Tapung Plasma (STPA) to PT. Ramajaya Pramukti, covering the following components; a) Fertilisers, b) Bailout funds for plants upkeep treatment, c) Re-planting Savings, d) Heavy machinery use (grader & bulldozer). The payment to PT. Ramajaya Pramukti is made by doing several cutouts in the components at the time of FFB price payment was made by PT. Buana Wiralestari to Kijang Mas KUD.

A budget cut in the road upkeep and transportation was made during the cost calculation for the sales income of KUD FFB paid by Funding Department in Jakarta by putting into consideration the heavy machinery loan (grader & bulldozer) by KUD to smallholder estates, inter alia:

Credit payment receipt for road upkeep using grader as the working tools, made on May 2012 in Sibuak Jaya KUD for the amount of IDR 16,603,333.

Road upkeep evidence in Berkat Lestari KUD; i.e. the workers were doing road upkeep every day by joining harvesting activity.

Based on the field visit, it was revealed that the roads in STPA area and in Amarta Jaya Plasma are in good condition. The replanting activity in Amarta Jaya shall be done in Sibuak Jaya KUD area, in Sibuak Lestari Village, on an area of 800 Ha (1992 planting year) and is planned to be done on the year of 2020. The replanting activity will also be done in Sungai Tapung Plasma Berkat Lestari KUD, Beringin Lestari Village on an area of 564.5 Ha (Gemi Karya smallholders group, Karya Bersama smallholders group, Sida Mulya smallholders group,


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Sumber Tani smallholders group, for 1995 planting year), and is planned to be done in the year of 2022. There are documents to prove that the replanting strategy is supplied with the investment scheme plan, and that the activity has already been disseminated and agreed upon by the plasma smallholders groups. The documents are as follow:

Mutual Working Agreement on Savings Management of Oil Palm Replanting between PT. Bank Sinarmas and Sibuak Jaya KUD with PT. Ramajaya Pramukti, document No. 016/PBR-328/RPLT/XII/2010 dated 9 December 2010, and in KOPSA Mukti Lestari under the document 016/PBR-331/RPLT/XII/2010 dated 9 December 2010. The agreement was agreed and signed by all respective parties; i.e. nucleus company, KUD Officials, Bank representative, and was witnessed by the Head of Village.

A Statement Letter issued by Sibuak Jaya KUD Officials, stating the confirmation to participate in the replanting program conducted by PT. Ramajaya Pramukti on 24 Novemver 2010, and the replanting savings program in Sibuak Jaya KUD that was set off on January 2011 and in KOPSA Mukti Lestari on January 2011. A list of attendance of the dissemination gathering is available and listed down 27 members of Sibuak Jaya KUD as the participants.

Full Compliance

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

Each KUD has reached the realization of several development in its area, both directly and that have been budgeted for in Annual Meeting of Members (RAT), for example; 1. Accountability Reports of the officials for fiscal year of 2011. Action Plan and Work Program & Revenue and

Expenditure Budget plan (RAPB) Sibuak Jaya KUD year 2012, in the Annual Meeting of members held on 31 March 2012, showed that during the year 2011 there has been an assistance given for Mosque Construction for around IDR 63,960,000 and a contribution given to Village (Work Area Development/Pemdaker) for the amount of 2.5% of the Dividend worth IDR 5,869,396.43. The fee for the construction of MDA (religious school, elementary level) that was agreed to be around IDR 50,000/plot for 6 months ahead.

2. Accountability Report of the Officials for fiscal year of 2011 and to show that on 2011 it has been realized the contribution to the Village (Work Area Development/Pemdaker) for the amount of 2,5 % of SHU. There is also a document of funding assistance for development in Village, for example; Funding Assistance for Religious Days Celebration, youth activities and the school inauguration.

3. The Accountability Report of Bangun Desa KUD officials for fiscal year of 2011 reported in the annual member meeting on 29 March 2012 shows that in 2011 the contribution has been realized to the village (work area development/Pemdaker) as much as 2.5% (cash expenses evidence No. 208 dated 7 April and Payment Receipts dated 7 April 2012 amounting to IDR 41,345,598.00) from the dividend (SHU), the Village Social Fund of 2.5% of total dividend, (cash expenses evidence No. 262 dated 7 April and Payment Receipts dated 7 April 2012 amounting to IDR 41,345,598.00). The mosque building construction as much as IDR 100,000.00 / household / month until construction is completed. Activities of religious holidays and national KUDs also help to realize them.

4. Accountability Report of Officials for fiscal year 2011 and Work Program & Berkat Lestari KUD’s Revenue and Expenditure Budget Plan (RAPB) year 2012 in the annual member meeting on 31 March 2012 show that in the year 2011 the contribution has been realized to the Village (Work area development) as much as 2.5% from the dividend, the Village Social Fund of IDR 5,000/month/Plot, Religious Facilities Construction fund amounting to IDR 25,000/Plot/month until the construction is completed. In fiscal year 2011 work area development funds available was of IDR 64,892,253, Social Fund amounting to IDR 73,838,567. Both of these funds can be realized according to the request of the parties concerned. Documents of financial assistance for Village development are available, such as the funds for religious day celebration, youth activities and school inauguration

Full Compliance

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.

Up to now, there has been no expansion of plantations or replanting in the KUD area of Amartha Jaya Plasma (AJYP) and Sungai Tapung Plasma (STPA) PT Ramajaya Pramukti.

Full Compliance


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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.

RJP has topographic survey which is available in the document of In-depth Soil Observation Map (Peta Tanah Tinjau) of PT.Ramajaya Pramukti Amarta Jaya Plasma (AJYP) and Sungai Tapung Plasma (STPA) which is based on following data sources: 1. Plantation Monitoring and Planning (PMNP) Division Partner Company - Sinarmas which was conducted based on

a field survey on 14 to 19 November 2011. 2. Landsat Image 7 path/row recording of 26 April 2000 Kampar District 3. Shuttle Radar Topography Mission (SRTM) 4. Desk study of Kijang Plasma area, PT. RJP Kampar District, Riau Province, September 2011 Characteristics of soil maps and Assessment of Land Suitability Class for Oil Palm of Amarta Jaya Plasma Area of PT. RJP such as Soil classification (Humic Endoaquepts, Typic Endoaquepts, Typic Dystrupdepts), slope (0-160), the top soil texture (Saprik, sandy loam, sandy clay loam), the bottom soil texture (sandy loam, sandy clay, sandy loam), effective depth >100m, solum depth> 120 cm, Drainage (rather bad, good), Class of land suitability (S3-suitable marginal area of 1,726.33 Hectares/ 39%, S2-suitable medium area of 2,699.66 Hectares / 61%). Topographical survey conducted in Amarta Jaya plasma area is of 4,426 Hectares. Characteristics of soil maps and Assessment of Land Suitability Class for Oil Palm of Sungai Tapung Area of PT.RJP such as Soil classification (Humic Endoaquepts, Typic Endoaquepts, Typic Dystrupdepts), slope (0-160), the top soil texture (Saprik, sandy loam, sandy clay loam), the bottom soil texture (sandy loam, sandy clay, sandy loam), effective depth >100m, solum depth >120 cm, Drainage (rather bad, good), Class of land suitability (S3-suitable marginal area of 1,087.2 Hectares/ 19.4%, S2-suitable medium area of 4,497.8 Hectares / 80.6%). Topographical survey conducted in Amarta Jaya plasma area is of 5,585 Hectares. At the location of Amarta Jaya plasma PT.RJP, there are no peat areas, but at the location of Sungai Tapung plasma there are peat areas whose depth is less than 3 meters with specification of Humic maturity covering 16.09 Hectares or 0.3% of the total area of the Sungai Tapung Plasma. Up to now, there has been no expansion of plantations or replanting in the KUD area of Amartha Jaya Plasma (AJYP) and Sungai Tapung Plasma (STPA).

Full Compliance

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.

PIR Trans of Sungai Tapung Plasma was started in 1994, the oldest planting year is 1995 and the youngest planting year is 1996. Based on the Statement Area document - Budget of STPA KUD 2012, there have been no new plantings since November 2012. Status of land managed by KNJP KUD at the present is Private Plantation (PBS), each of which has been owned by the landowner as evidenced by the Certificate of Ownership (SHM). Those areas are from the Decree of Kampar District Land Office Number: KPTS. 12/KP/VIII/1994, dated 30 August 1994 regarding the Granting of Location Permits For Oil Palm Plantation of PT. Ramajaya Pramukti on the Transmigration Area of UPT Tebing Tinggi SKPE with PIR Integration. PIR Trans of Amartha Jaya Plasma KUD was started in 1991, the oldest planting year is 1991 and the youngest planting year is 2001. Based on the Statement Area document - Budget of AJYP KUD 2012, there have been no new plantings since November 2005. Status of land managed by AJYP KUD at the present is Private Plantation (PBS), each of which has been owned by the landowner as evidenced by the Certificate of Ownership (SHM). Those areas are from the Decree of Forestry Ministry No. 248/Kpts-II/1991 dated 6 May 1991 regarding the Release of Some of Forest Group of Sungai Tapung Kiri Covering 8,355.9 Hectares which is located in Kampar District, Riau Province for Plantation Cultivation on behalf of PT. Ramajaya Pramukti. There is a document of Decree of Riau Governor Number: Backup KPTS.04/PT-VIII/1991 on Land Provisioning covering approximately 12,400 hectares in the Petapahan Village, Siak Hulu Sub-district & Kampar Sub-district, Kampar District for Oil Palm Plantation of PIR-Trans scheme on behalf of PT. Ramajaya Pramukti, dated 5 August 1991. Up to now, there has been no expansion of plantations or replanting in the area of Amartha Jaya Plasma (AJYP) and Sungai Tapung Plasma (STPA) KUDs.


ASSESSMENT REPORT


Full Compliance

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


Full Compliance

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.


Full Compliance

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.


Full Compliance

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.

Based on the age of the plants, replanting plan will be carried out in 2018 for Sibuak Jaya, in 2023 for Bangun Desa and Mukti Lestari. The company and scheme smallholder institutions develop a “replanting savings” program for members of smallholder groups started in December 2010. Technical implementation replanting will be done by Scheme smallholders’ partner (PT. Ramajaya Pramukti). In accordance with the Technical Guidelines of Oil Palm Cultivation of Sinar Mas (Management Committee of Agronomy and Research) Point 5 regarding the land clearing and planting Document No. SMA/MCAR/05/05-07, it is stated that the land clearing must use Zero Burning principle. The Land Fire Handling Flow Chart is available with procedures as follow: Any employee who finds out the spots of fire will directly perform the initial fire fighting, if it is not successful then he must report it to the KUD officials, contact the emergency response team and relevant agencies, the emergency response team prepares the team and the equipments and directly goes to the fire location, the team coordinate the location area, methods of firefighting, the division of personnel, after the fire is put off, they will perform an investigation and report the case to the relevant agencies. The flowchart of fire handling has been socialized to the community by sticking the procedures at the KUD’s bulletin board, as seen at Sibuak Jaya KUD. Based on results of interview with the smallholders at Block G6 Sibuak Jaya KUD (Mr. Trimono, Mr. Sahroni and Mr. Nartin) and a smallholder at Block H25 Bangun Desa KUD (Mr. Sangkot), it is known that those smallholders are capable in understanding the procedures of land fire handling and prohibited things that may caused fires such as trash burning and dispose of cigarette butts carelessly. There is a list of inventory and fire fighting equipment checklist in all KUDs, based on field check to KUDs showing the fire fighting equipments were in good condition and ready to use. The replanting will technically be done by PT. Ramajaya Pramukti (Sinarmas Group). Based on the Technical Guidelines of Oil Palm Cultivation of Sinar Mas (Management Committee Agronomy and research) Point 5 regarding land clearing and planting process under document number SMA/MCAR/05/05-07 where it is stated that a zero burning policy must be applied during land clearing process. Up to now, there has been no expansion of plantations or replanting in the area of Amartha Jaya Plasma (AJYP) and Sungai Tapung Plasma (STPA) PT Ramajaya Pramukti.

Full Compliance


ASSESSMENT REPORT


PRINCIPLE #8 Commitment to continuous improvement in key areas of activity

8.1 Growers and millers regularly monitor and review their activities and develop and implement action plans that allow demonstrable continuous improvement in key operations.

There is a document of Continuous Improvement (Innovation) of Amarta Jaya Plasma, such as the Construction of Owl’s Nests (Gupon) using a ferrocement system (type of thin wall reinforced concrete made of wire mesh, sand, water and cement) and use of sickle safety cover. There is a sustainable operational improvement between PT. RJP and the smallholders, which was stated in the document of Agronomy and Advisory Audit year 2011 for Amarta Jaya Plasma (AJYP) o 28 January 2011, and there is Audit of Sungai Tapung Plasma (STPA) on 15 – 16 February done by audit team from Scheme smallholders advisers of PT. RJP explaining on the improving the scheme smallholder estate operational activity, such as to complete Owl’s Nests in Berkat Lestari KUD applying a ratio of 1 owl nest per 62.1 Hectares that would be increased into the standardized 1 owl nest to 30 Hectares. There is an Appeal concerning of waste management in the Karya Tani KUD area of Suka Maju Village on 19 October 2010 explaining to dispose of waste in a place that has been available, separation organic and non-organic waste, to make a pit for organic waste and to not burn the domestic waste.

Full Compliance


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SPO – 4006a.4 Page 37


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

During the assessment 2 (two) nonconformities were assigned against Minor Compliance indicators and 2 (two) opportunities for improvement were identified. Further explanation of the non-conformities raised and corrective actions taken by the company are provided in this section. Corrective actions taken to close all non-conformities shall be verified during next assessment.

3.2.1 Identification of Findings, Corrective Actions and Observations at Assessment

CAR No

Ref Std Finding Area Grade Time

Limits Corrective Action Observation Status

Closing Date

2012.01

Minor 4.4.1

Natural water reserve preservation effort. Field observation done in Block H5/I5 Lembu Riparian found a fertiliser application not in compliance with the policy of smallholders institution (KUD).

Amarta Jaya

Plasma

Minor S-1 The company shall consistent carry out the program of preservation of water resources (no applied chemcila around riparian) related to practices to protected water quality and availability of water surface and soil water

Open

2012.02

Minor 4.7.4

Occupational Safety Equipment. A filed observation done in Block G-06 (Sibuak Jaya KUD) found a harvester on duty wearing unappropriate Personal Protection Equipment (broken pair of boots).

KUD Sibuak Jaya

Minor S-1 The company shall provide the PPEs related to the plan and of Health and Safety, documented, and implemented effectively.

Open


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SPO – 4006a.4 Page 38


3.2.2 Opportunity for Improvement

No Ref Std Descriptions

1 Major 1.1.1 Smallholders’ institution (KUD) potentially improving of update any pending letters of inquiry

2 Minor 4.7.4 Smallholders’ institution is entitled to making any necessary corrections by re-evaluating all the equipments and the supplies of first aid kit to meet the number of active workers (harvester and upkeep worker) each day.

3.2.3 Noteworthy Positive Components

No Ref Std Descriptions

1 Major 4.2.2 The production yields from scheme smallholders’ estate are considered high in quantity so as to reach the same level as that of the smallholders’ estates.

2 6.10 The mutual relationship occurs between the smallholder scheme adviser and the smallholders’ institution is well handled.

3 Minor 6.10.2 The payments for all activities conducted as a compliance with what is listed down in the mutual working agreement (e.g. FFB payment) are made on schedule and transparent for everyone.


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SPO – 4006a.4 Page 39


3.3 Summary of Arising Issues from Public, Management and Auditor Responses

Public Issues (Institution/ NGO/Community)

Management Responses Auditor Responses

Plantation Agency of Kampar District: Sinarmas Scheme Smallholders in Kampar Region has well complied with the cultivation technics. This is made possible by the assistance that the Plantation Agency has been given since the beginning of the development.

PT. RJP Sinar Mas Agrobisnis is committed to providing a sustainable assistance for the smallholders and still putting into account the advancement of agricultural technology, environmental sustainability, occupational health and safety, the continuous social welfare, and the transparency in assigning a professional staff in the right position according to their competency.

The evaluation resulted from field study on the oil palm cultivation technics showed that the assistance given by the mentor has been a major help, resulting in a high FFB production (yield/year)

Cooperatives Agency of Kampar Dissstrict: The cooperatives included in Kampar Sinarmas Scheme Smallholders have been submitting the annual report to the Head of Cooperatives Agency and has also implemented all terms listed in the cooperative regulation.

PT. RJP Sinar Mas Agrobisnis is providing continuous coaching and counseling on the standard and correct principles of cooperative’s administration matters, and the compliance with the applicable cooperative laws.

The field observation showed that the required report of annual cooperative’s work performance is well submitted on a regular basis.

Head of Village and the Respective Residents A scheme smallholder has contributed to give people positive impact to enhance the community welfare.

PT. RJP Sinar Mas Agrobisnis has committed to provide the correct technical coaching and assistance on oil palm cultivation to the smallholders, making it possible to ensure high productivity and to enhance the welfare of the smallholders in general and of the people living around the area of plasma.

The field visit and the interview with scheme smallholders revealed that the partnership program provided by RJP has given positive impact in relation to the welfare enhancement of people living in villages nearby.

Subhan, Abdul Jalil (Smallholders) Sibuak Jaya KUD Kusni, Hendar Suparman, Catur Yunanto and Mulikan (Smallholders) Mukti Lestari KUD Sangkot (Smallholder) Bangun Desa KUD Trimono, Sahroni and Martin (Smallholders) Sibuak Jaya KUD For every activity held, KUD has provided the Personal Protection Equipment, First Aid Kit Box given to every supervisor. There are also the Land Fire Emergency Response Procedure and pest management efforts using pest predator. Agrochemical packaging waste is cleaned

The commitment kept by PT. RJP Sinar Mas Agrobisnis is to provide a continuous coaching assistance for KUD and the smallholders on the importance of: 1. Occupational safety aspect and Personal Protection Equipment

(PPE) 2. Environmental preservation and endangered animals protection 3. Oil palm cultivating technics and integrated pest management in oil

palm plantation. 4. The correct use of herbicides, in compliance with the regulations and

the packaging handling management. 5. The correct use of First Aid Kit.

Based on the field visit as well as on the document analysis, it was revealed that KUD has provided the Personal Protection Equipment (PPE) for all workers, the procedure of land fire emergency response. It was also found that there has been planted the host plant of leaf-eating worm predator (Turnera subulata and the construction of owl nests), agrochemical packaging waste is cleaned according to the label request then it is sent to temporary


ASSESSMENT REPORT

SPO – 4006a.4 Page 40


according to the label request then it is sent to temporary hazardous waste storage to be sent back to Agrochemical Suppliers. It was also found protected animals in the areas of Amartha Jaya Plasma and Sungai Tapung Plasma, namely White throated kingfishers and Leopard cats.

hazardous waste storage to be sent back to Agrochemical Suppliers. It was also found protected animals in STPA & AJYP area, namely White throated kingfishers and Leopard cats.


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:

IVOMAS TUNGGAL

Mutuagung Lestari

Head of Environment Department

Lead Auditor

Ismu Zulfikar

Nanang Mualib

30/July/2012

30/July/2012


ASSESSMENT REPORT


No Institution/NGO/Community Address Form of Contact Date of Contact

1. Plantation Agency of Kampar District Jln. M. Yamin Bangkinang

Public Consultation Meeting 13 June 2012

2. Cooperative Agency of Kampar District Public Consultation Meeting 13 June 2012

3. Tapung Hilir Subdsitrict Head (Marzali) Tapung Hilir Public Consultation Meeting 13 June 2012

4. Tapung Subdistrict Head (Khaerudin) Tapung Public Consultation Meeting 13 June 2012

5. Cinta Damai Village Head Desa Cinta Damai, Kec. Tapung Hilir


6. Bangun Desa Village Head (Nefrizal Pili) Desa Bangun Desa, Kec. Tapung Hilir


7. Beringin Lestari Village Head (Tugimin) Desa Beringin Lestari, Kec. Tapung Hilir


8. Kota Baru Village Head (Jonter Sihombing)

Desa Kota Baru, Kec. Tapung Hilir


9. Suka Maju Village Head (Kasrun) Desa Suka Maju, Kec. Tapung Hilir


10. Community leader of Tapung Lestari Village (Katimo)

Desa Sukamaju Kec Tapung Hilir


11. Community leader of Tapung Lestari Village (M. Sitorus)

Desa Kota Bangun Kec Tapung Hilir


12. Ketua KUD Bangun Desa (Eko Susanto) Desa Bangun Desa, Kec. Tapung Hilir


13. Berkat Lestari Cooperative Head (Dedeng Suparman)

Desa Beringin Lestari, Kec. Tapung Hilir


14. Karya Tani Cooperative Head (Darmaji) Desa Suka Maju, Kec. Tapung Hilir


15. Tunas Makmur Cooperative Head (Marudut Sitinjak)

Desa Kota Baru, Kec. Tapung Hilir


16. Kenantan Village Head (Hery. S) Desa Kenantan Kec. Tapung


17. Kayu Aro Village Head (Gunawan) Desa Kayu Aro Kec. Air Tiris


18. Community leader of Sari Galuh Village (Eko Widodo)

Desa Sari Galuh Kec. Tapung


19. Sibuak jaya Cooperative Head (M.N. Singggih)

Desa Kenantan Kec. Tapung


20. Mekar jaya Cooperative Head (Slamet) Desa Muara Mahat Baru Kec. Tapung


21. Mukti Lestari Cooperative Head (Sangkot)

Desa Sei Lambu Makmur Kec. Tapung


22. Kijang Jaya Village Head (Sugiman) Desa Kayu Aro Kec. Air Tiris


23. Kijang Makmur Village Head (Rabi’in) Desa Kijang Jaya. Tapung Hilir


24. Tanah Tinggi Village Head(Untung Sujarwo/Sekdes)

Desa Tebing Lestari Kec. Tapung Hilir


25. Gerbang Sari Village Head(Supono) Desa Tanah Tinggi, Kec. Tapung Hilir


26. Tandan Sari Village Head(Sukandar) Desa Gerbang Sari Kec. Tapung Hilir



ASSESSMENT REPORT


27. Tapung makmur Villlage Head (H.M Sumendi)

Desa Tandan Sari Kec. Tapung Hilir


28. Tapung Lestari Village Head(Ponimin) Desa Sari Galuh Kec. Tapung Hilir


29. Community leader of Tanah Tinggi Village(Yuli Pramono)

Desa Tebing Lestari Kec. Tapung Hilir


30. Community leader of Tandan Sari Village(Hariri)

Desa Gerbang Sari Kec. Tapung Hilir


31. Community leader of Tapung Makmur Village (H. Ramli)

Desa Tandan Sari Kec. Tapung Hilir


32. Kijang Mas Cooperative Head(H. Wiji) Desa Kijang Makmur Kec. Tapung Hilir


33. Budi Karya Cooperative Head (Sumino) Desa Gerbang Sari Kec. Tapung Hilir


34. Lestari Jaya Cooperative Head (Masduki) Desa Tandan Sari Kec. Tapung Hilir


35. Manunggal Abadi Cooperative Head (Sutrisno)

Desa Sari Galuh Kec. Tapung Hilir


36. Community leader (Wahyudin) Public Consultation Meeting 13 June 2012

37. Community leader (Khairun) Public Consultation Meeting 13 June 2012

38. Youth organization leader (Indrawan) Public Consultation Meeting 13 June 2012

39. Community leader (Subariadi) Public Consultation Meeting 13 June 2012

40. Community leader (Sularno) Public Consultation Meeting 13 June 2012


ASSESSMENT REPORT


Appendix 2. Assessment Program

11, 13, 16-20 June 2012

Date and Time PROCESSES / CLAUSES TO BE AUDITED AUDITOR

Monday, 11 June 2012

13.30-14.30 Opening Meeting (smallholders and Management Representative)

finalisation of the planned visit to the KUDs.

NM, ON, MES

Wednesday, 13 June 2012

09.00-12.30 Public Consultation NM, ON, MES

13.30-17.30 Observation of KUD Documentation at KUD Sibuak Jaya.

Observation of KUD Storage Facilities and interviews with KUD management

Friday, 15 June 2012

08.00-12.00 Observation of KUD Documentation at KUD Mukti Lestari.


NM, ON, MES

13.30-17.30 Observation of KUD Documentation at KUD Berkat Lestari.


NM, ON, MES

Saturday, 16 June 2012

08.00-12.00 Field Check to Smallholder blocks and interviews to KUD Sibuak Jaya members and workers.

NM, ON, MES

13.30-17.30 Observatiof KUD Documentation for KUD Bangun Desa.


NM, ON, MES

Sunday, 17 June 2012

08.00-12.00 Analize the collected data NM, ON, MES

Monday, 18 June 2012

08.00-12.00 Field Check to Smallholder blocks and interviews to KUD Mukti Lestari members and workers.

NM, ON, MES

13.30-17.30 Field Check to Smallholder blocks and interviews to KUD Berkat Lestari members and workers.

NM, ON, MES

Tuesday, 19 June 2012

13.30-17.30 Field Check to Smallholder blocks and interviews to KUD Bangun Desa members and workers.

NM, ON, MES

Wednesday, 20.06.2012

09.00-12.00 Closing Meeting (smallholders and Management Representative) NM, ON, MES


ASSESSMENT REPORT


Appendix 3. Glossary

AJYP : Amarta Jaya Plasma

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

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

ASPEKPIR : Asosiasi Perkebunan Petani Inti Rakyat (Association of Smallhoders Plantation Community)

B3 : Bahan Beracun dan Berbahaya (Hazardous Material Waste)

BWL : PT. Buana Wiralestari Mas

BPN : Badan Pertanahan Nasional (National Land Agency)

CAR : Corrective Action Request

CEO : Chief Executive Officer

CPO : Crude Palm Oil

ENDV : Environment Division

EWS : Early Warning System

HGFB : High Grade Fertiliser Borate

HCV / NKT : High Conservation Value (Nilai Konservasi Tinggi)

HGU : Hak Guna Usaha (Land Use Title)

ISBPR / HIRARC :

Identifikasi Sumber Bahaya, Penilaian, dan Pengendalian Resiko / Hazard Identification Risk Assessment and Risk Control

IUP : Izin Usaha Perkebunan (Plantation Operation Licence)

Jankos / EFB : Janjangan Kosong (Empty Fruit Bunch)

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

KER : Kernel Extarction Rate

KJNP : Kijang Kencana Plasma

KUD : Koperasi Unit Desa (VillageUnit Cooperative Unit)

KOPSA : Koperasi Petani sawit (Smallholder Oil Palm Cooperative)

KPSR : Koperasi Petani Sawit Rakyat (Smallholder Oil Palm Cooperative)

KT : Kelompok Tani (Smallholders Group)

LC : Land Clearing

OER : Oil Extarction Rate

PC : Production Controller

P2K3 :

Panitia Pembinaan Keselamatan dan Kesehatan Kerja (Guiding Committee of Occupational Safety & Health)

P3K : Pertolongan Pertama Pada Kecelekaan (First Aid)

PIR-Trans : Perkebunan Inti Rakyat-Transmigrasi (Smallholders Inti Plantation-Transmigration)

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

PK : Palm Kernel

PKS / POM : Pabrik Kelapa Sawit / Palm Oil Mill

PKWT : Perjanjian Kerja Waktu Tertentu (Specified Time Employment Agreement)

PSM : Perkebunan Sinarmas

RBKE : Rama Bhakti Estate

RC : Region Controller

RJP : PT. Ramajaya Pramukti

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

RRME : Ramarama Estate

RRMM : Ramarama Mill

RSPO : Roundtable on Sustainable Palm Oil

SHM : Sertifikat Hak Milik (Certificate of Ownership)

SHU : Sisa Hasil Usaha (Dividend of KUD)


ASSESSMENT REPORT


SIUP : Surat Izin Usaha Perdagangan (Business Operational Permit)

SMART : PT. Sinarmas Agro Resources and Technology Tbk.

SMARTRI : SMART Research Institute

SMK3 : Sistem Manajemen Keselamatan dan Kesehatan Kerja (Occupational Health and Safety management System)

SOP : Standart Operational and Procedure

SPO : Sustainable Palm Oil

S-1 : Surveillance-1

ST 1 : Stage 1

ST 2 : Stage 2

STPA : Sungai Tapung Plasma

TBS / FFB : Tandan Buah Segar / Fresh Fruit Bunches

TPH : Tempat Pemungutan Hasil (FFB Collection Point)

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

VPA : Vice President Agronomy

VPM : Vice President Manufacture


ASSESSMENT REPORT


Appendix 4. 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 5. Result of RSPO Committee - RSPO Certification

No Input and Responses

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