RSPO ANNUAL SURVEILLANCE ASSESSMENT 2 PUBLIC … · 3.2.2 Resume of Audit Results ... Bina Sawit...

PT. TÜV NORD Indonesia

Audit Report

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ASA-2 AUDIT REPORT AEK TARUM 250713ASA1 of 49

RSPO ANNUAL SURVEILLANCE ASSESSMENT 2

PUBLIC SUMMARY REPORT


System Certification Management

Has assessed

PT. AEK TARUM - SAMPOERNA AGRO

Belida Mill and its Supply Bases

for Compliance to RSPO Principles and Criteria

for Sustainable Palm Oil Production

Date of assessment:

May 28-31, 2013

Report Number: P&C-E-132

Head Office

System Certification Management

Perkantoran Hijau Arkadia Tower F,

7th Fl Suite 706

Jl. Let. Jend. TB Simatupang Kav. 88

Jakarta 12520 – Indonesia

Tel : +6221 7883 7338

Fax : +6221 7883 7336

Laboratory Division

Jl. Jababeka XVII E Blok U No. 27B

Kawasan Industri Jababeka I Cikarang Bekasi 17530 – Indonesia

Tel : +6221 898 403 18 – 19

Fax : +6221 898 403 20

Branch Office

Intiland Tower 11th

Fl, Suite 1E

Jl. Panglima Sudirman 101-103

Surabaya 60271 - Indonesia

Tel : +6231 53 444 54

Fax : +6231 53 4 44 82

President Director:

Mr. Robert Napitupulu

Email: [email protected]

Website: www.tuv-nord.com or www.tuev-nord.de

mailto:[email protected]

http://www.tuv-nord.com/

http://www.tuev-nord.de/


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List of Contents

1 Scope of The Certification Assessment .......................................................... Error! Bookmark not defined.4

1.1 Type of Assessment (Mill, Estate and Mill, etc.) ................................. Error! Bookmark not defined.4

1.2 Location, mill, and or hectare statement ............................................ Error! Bookmark not defined.4

1.3 Description of Mills and Its Supply Bases (Fruit Sources) ................................................................... 5

1.3.1 Description of Mill(s) .............................................................................................................. 6

1.3.2 Description of Estate (Fruit Sources) ..................................................................................... 6

1.4 Date of Planting and Cycle ...............................................................Error! Bookmark not defined.14

1.4.1 Replanting Program for Each Estate ....................................Error! Bookmark not defined.14

1.4.2 Time-bound Plan (for other management units and justifications). ......................................... 6

1.5 Other Certifications Held (ISO, etc.) .................................................Error! Bookmark not defined.15

1.6 Organizational Information/Contact Person ........................................................................................ 9

1.7 Tonnages Certified ............................................................................................................................. 9

2 Assessment Process .................................................................................................................................... 10

2.1 Assessment Methodology (Program, Site Visits) .............................................................................. 10

2.1.1 General Overview ................................................................................................................ 10

2.2 Date of Next Surveillance Visit ......................................................................................................... 11

2.3 Lead Assessor/Assessment Team ................................................................................................... 11

2.3.1 Lead Assessor: Anita Masduki ............................................................................................. 11

2.3.2 Assessment Team Members ............................................................................................... 13

2.4 Certification Body ............................................................................................................................. 15

2.5 Outline of How Stakeholder Consultation Was Managed .................................................................. 16

2.5.1 Summary ............................................................................................................................. 16

2.5.2 List of Contacted Stakeholders ............................................................................................ 17

3 Assessment Findings .................................................................................................................................... 17

3.1 Summary of the Findings by Criteria ................................................................................................. 19

3.2 Identified Non Conformances ...........................................................Error! Bookmark not defined.46

3.2.1 Detail of Non Conformity ...................................................................................................... 34

3.2.2 Resume of Audit Results ..................................................................................................... 35

3.3 Issues Raised by Stakeholders ........................................................................................................ 16

4 Certified Organization’s Acknowledgement of Internal Responsibility ............Error! Bookmark not defined.48

4.1 Formal Sign-off of Assessment Findings ..........................................Error! Bookmark not defined.48


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1 Scope of the Certification Assessment

1.1 Type of Assessment (Mill, Estate and Mill, etc.)

The standard requirements of the Indonesian National Interpretation of RSPO Principles and

Criteria (RSPO INA-NIWG) version May 2008 were used to assess the operations of the Palm Oil

Mill and the supply base of FFB for PT. AEK Tarum Sampoerna Agro (herein after as ATSA).

1.2 Location of Mill and Estates

Code

Unit

Location

GPS coordinates

Longitude (E)

Latitude (S)

BLDM

Belida Mill

Desa Sumber Baru C1, Kecamatan Mesuji,

Kabupaten Ogan Komering Ili, Province

South Sumatera

104º 58' 09,82"

03º 50' 13,93"

BLDE

Belida Estate

Desa Sumber Baru C1, Kecamatan Mesuji, Kabupaten Ogan Komering Ilir, Province South Sumatera

105º 01' 27,4" 03º 49' 42,7"

MSJE

Mesuji Estate

Desa Surya Adi, Kecamatan Mesuji, Kabupaten Ogan Komering Ilir, Province

South Sumatera

105º 01' 36,5" 04º 02' 59,7"


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Figure 1-1 Map of Location of PT ATSA


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Figure 1-2 Map of Belida Mill and its Supply Base

CITRA SATELIT LANDSAT PANKROMATIK PT. AEK TARUM SAMPOER NA


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Code Name of Mill and Estate Location

GPS

Longitude (E) Latitude (S)

BLDM

Belida Mill

Desa Sumber Baru C1, Kecamatan

Mesuji, Kabupaten Ogan Komering Ili,

Province South Sumatera

104º 58' 09,82"

03º 50' 13,93"

BLDE

Belida Estate

Desa Sumber Baru C1, Kecamatan Mesuji, Kabupaten Ogan Komering Ilir, Province South Sumatera

105º 01' 27,4" 03º 49' 42,7"

MSJE

Mesuji Estate

Desa Surya Adi, Kecamatan Mesuji, Kabupaten Ogan Komering Ilir, Province South Sumatera

105º 01' 36,5" 04º 02' 59,7"

1.3 Description of Mill and Its Supply Bases (Fruit Sources)

1.3.1 Description of Mill

Name

of mill

Mill Capacity

(ton/hour)

Certification volume

2010 (ton)

Actual production

In 2011 (ton)

Actual production

in 2012 (ton)

Actual production

up to Apr 2013 (ton)

Budget production

up to Apr 2013(ton)

CPO PK CPO PK CPO PK CPO PK CPO PK

Belida Mill 60

20,937 5,457 24,807 6,228 22,559

6,022

2,558.70 621.9

The actual production in 2013 was decreased since the supply based was allocated to the other mill within in the group

1.3.2 Description of Supply Bases (Fruit Sources)

Table 0-1 Description of supply base (fruit sources)

Estates

Certification volume in 2010 (ton)

Actual production in 2011 (ton)

Actual production in 2012

Sent to Belida mill (ton)

Actual production

up to Apr 2013

Sent to Belida mill (ton)

Budget production

up to Apr 2013(ton)

Belida Estate 58,678 51,373 6,400 7,523 -

Mesuji Estate 40,547 41,309 6,292 987.4 -

Smallholders (Plasma) 66,016 43,061 12,692 - 136,535

Inti Permata Bunda Satu 8, 483.8 1,855.9 12,544


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1.3.3 Time-bound Plan

Company Mill/ Estate Unit Proposed Year for certification

PT. Aek Tarum Mesuji Smallholder 2014

Belida Smallholder 2014

PT. Mutiara Bunda Jaya Permata Bunda POM 2014

Permata Bunda Satu Estate 2014

Permata Bunda Dua Estate 2014

Permata Bunda Smallholder 2014

Harapan Dua Smallholder 2014

PT. Gunung Tua Abadi Sumber Sawit POM 2014

Sumber Sawit Estate 2014

Balian Sawit Estate 2014

PT. Bina Sawit Makmur Surya Adi Estate 2014

PT. Sampoerna Agro Selapan Jaya POM 2014

Gading Jaya Estate 2014

Limau Mungkur Smallholder 2014

Limau Manis Smallholder 2014

Limau Sundai Smallholder 2014

Sungai Indah Samllholder 2014

Sungai Pangeran Smallholder 2014

Gading Jaya Smallholder 2014

PT. Telaga Hikmah Telaga Hikmah POM 2016

Hikmah 1 Estate 2016






KKPA Smallholder 2016

PT. Sungai Rangit Sungai Rangit POM 2015

Baboti Estate 2015

Rauk Naga Estate 2015

Ranggam Estate 2015


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Sungai Sagu Estate 2015

Waringin Estate 2015

Sukamara Estate 2015

Telaga Bintang Estate 2015

Prestasi Estate 2015

Sungai Rangit Smallholder 2015

Note: As planned previously, the time bond for certification was in 2013, but according to the business condition, the company postponed the the bond. See the Letter of Statement in Attachment

1.4 Year of Planting and Replanting Program

1.4.1 Planting profile for each estate

Year of Planting Planted Area (ha) Total Planted Area (ha)

Belida Estate Mesuji Estate

1989 1,726.9 1840.1

1990 710.3 710.6

1991 1641.2 101.5 1742.7

1992 108.0 47.9 155.9

1993 139.6 139.6

1995 66.5 66.5

1996 51.0 51.0

2002 30.3 44.0 74.3

2005 44.6 44.6

2007 10.6 10.6

2009 57.4 57.4

2010 (replanting) 7.7 27.6 35.3

2011 (replanting) 89.2 89.2

2012 (replanting) 19.2 19.2

2013 (replanting) 107.4 107.4

TOTAL 2,749.7 2,281.2 5,300.9


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1.4.2 Five year replanting program for Each Estate from 2013 to 2017

Year of Replanting

Planted Area (ha) Total Area to be planted (ha) Belida Estate Mesuji Estate

2013 500.00 500.00

2014 500.00 500.00 1,000.00

2015 710.30 601.50 1,311.8

2016 608.00 431.90 1,039.90

2017 639.60 639.60

2018 141.20 141.20

TOTAL 2,599.10 2,033.40 4,632.50

1.5 Other Certifications Held (ISO, etc.)

Certification Name Certification

Num. Date of

Certification Valid until

ISO 9001:2008 (Re Certification) 16 100 0936 2009-05-10 2012-05-09

ISO 14001:2004 (Re Certification) 08 104 0105 2009-05-10 2012-05-09

1.6 Organizational Information/Contact Person

Organizational Information

Principle Contact Person Mr. H. Indra Pangasian

Position QES Senior Manager

Business Address PT. Aek Tarum – Sampoerna Agro (PT. ATSA), Jl. Basuki Rahmat No. 788, Palembang

Group Name (If applicable) Sampoerna Agro

Office Telp/Fax +62711-813388/ +62711-811585

E-mail address [email protected]

Web site www. sampoernaagro.co.id

1.7 Tonnages Certified in 2013*

Tonnages Certified

Name of Mill Belida Mill

Location Desa Sumber Baru C1, Kecamatan Mesuji, Kabupaten Ogan Komering Ili, Province South Sumatera

CPO Production (ton) 2,558.70

PK Production (ton) 621.9

mailto:[email protected]


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2 Assessment Process

2.1 Assessment Methodology (Program, Site Visits)

2.1.1 General Overview

The assessment was carried out by referring to TÜV NORD Indonesia Certification Procedure, PRSPO-

TNI-01 Rev. 0, dated 01.06.2008. This procedure described the assessment processes, which consist of

several stages, such as contract review and offer preparation, audit preparation, certification audit,

certificate issuance, and surveillance audit. Audit preparation included off site review of client document’s

such as RSPO manual, procedures, and working instructions. The surveillance audit was conducted on

May 27-31, 2013.

Table 2-1 Audit Schedule

Date Location P&C Main Activities

Day. 1

28.05.2013

Belida Estate - 1.1, 1.2

- 2.1, 2.2, 2.3, 3

- 4.1 – 4.8

- 5.1-5.6

- 6.1-6.11

- Request of info and respons

- Regulation compliance, land-use right, customary right, actual and budgeted production

- SOP, Soil Control, Errosion Control,Water Mgt, IPM, Chemical Mgt

- EIA, HCV, Burning Issues, Waste Mgt, Agrochem.

- Wages,Trade Union, Anti Child Labour/ Discrimination/Sexual Harrasment, Payment to Outgrower, CSR

Day. 2

29.05.2013

Mesuji Estate - 1.1, 1.2

- 2.1, 2.2, 2.3, 3

- 4.1 – 4.8

- 5.1-5.6

- 6.1-6.11



- SOP, Soil Control, Errosion Control,Water Mgt, IPM, Chemical Mgt

- EIA, HCV, Burning Issues, Waste Mgt, Agrochem.


Day. 3

30.05.2013

Belida Mill

- 1.1, 1.2

- 2.1, 2.2, 2.3, 3

- 4.1 – 4.8

- 5.3, 5.4,5.6

- 6.1-6.11



- SOP, Water Mgt

- Waste Mgt, Agrochem.


Day 4

31.05.2013

Belida Office All Closing Meeting

Chaired by the assessment team leader.

Presentation of findings by the assessment team.

Questions and answers.

Final summary by team leader.


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2.2 Date of Next Surveillance Visit

The next annual surveillance audit (ASA-3) will be scheduled on June 2014. Surveillance audit is

conducted once a year for a 5-year period of validity certificate..

2.3 Lead Assessor/Assessment Team

2.3.1 Lead Assessor: Anita Masduki

Qualification Compliance

Educational Background

A minimum of post high school (post secondary school) training in, and either agriculture/ forestry, environmental science or social science;

Chemical Engineer, Bandung Institute of Technology-Indonesia, passed 1987

Diploma of Biological Treatment Management, Name of University etc. Hiroshima University-Japan, 1991-1992

Diploma of Environmental Management, Institute of Environmental Management and Assessment, London- United Kingdom, 1999

Magister of Social Education, Ibnu Khaldun University, Bogor-Indonesia, 2007-200

Candidate Doctoral Program of Education Management, Ibnu Khaldun University,Bogor-Indonesia, 2010-present

Yes (Y)

Working Experience

At least 5 years experience in area of work relevant with the audit (e.g., oil palm management; agriculture, ecology; social science);

Environmental/ ecological , safety and health assessment

1992-1995: Assessment the environmental impact for several industries of pulp and paper, wood product, pharmacy, at Java, Sumatera, and Kalimantan

1996: Cleaner Production Division for GTZ-Germany and Environmental Impact Control Agency - Indonesia) and Swiss Contact; responsible for research and develop program to integrate cleaner production in the strategic planning of industrial development program, including identifying candidates for implementing cleaner production program in Indonesia. The project include of information dissemination, assist on pilot projects, develop guidance manual for cleaner production integration, develop cleaner production training workshops, deliver training for trainer, etc. This project based on social services provided by GTZ-Germany and Environmental Impact Control Agency of Indonesia as Awareness for Indonesian Cleaner Production Program.

1997- 1998: Global Climate Division of State Ministry of Environment, Jakarta and World Bank – Washington; responsible for preparing Investment Project Proposal for Ozone Depleting Substances Phaseout in Indonesia to be granted by Montreal Protocol Multilateral Fund through World Bank. This project focused on research in identifying industries as candidates for investment project. The project covered dissemination of information, assist on pilot projects, develop guidance manual for cleaner production integration, develop investment project proposal, delivered training, workshops for trainer, public training, etc.

1998-2011: Audit and consultancy experiences for more than 80 companies for ISO 9001, ISO 14001, OHSAS 18001, SA 8000, since 1996 up to 2011 in wide range of audit scope, such as estates, oil and gas, pulp and paper, electronic manufacturing, school and university, contractors, etc.

Y

RSPO Training:

Trained in practical application of the RSPO criteria, and RSPO Certification System;

Certified RSPO Lead Auditor Training by Wild Asia, May 2011, Kuala Lumpur, Malaysia

Workshop on Indonesia Sustainable Palm Oil, February 2012, Indonesia Palm Oil Community, Jakarta

Y

Completed ISO 9001/ 14001/18001 Lead Auditor course and audit experiences.

ISO 9001:2000 Advanced Lead Auditor Training Course, by SGS International Certification Services, 2002, Jakarta-Indonesia

Certified Auditor Training of Environmental Management System (ISO 14001:1996) EARA -RIET - REDECON Jakarta

Occupational Safety and Health Audit Scheme (OSHAS) 18001, SGS-Jakarta 2002

Y


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Experience related to RSPO:

A supervised period of training in practical assessment against the RSPO criteria or similar sustainability standards, with a minimum of 15 days assessment experience at least 3 assessments at different organisations

Having more than 15 days of audit in more than palm oil companies (Feb 2011 – June 2012)

1. RSPO PNC Auditor for Main Audit of Mill and Estates London Sumatera Musi

Banyuasin, Palembang-Indonesia, Feb. 21-25, 2011 (5 days)

2. RSPO PNC Auditor for Pre Audit-1 of Salim Ivomas Perkasa Mill and Estate, Riau-

Indonesia, April 25-28, 2011 (4 days)

3. RSPO Supply Chain Lead Auditor for Main Audit of Wilmar Group, 2 mills and 2

refineries, Sumatera and Kalimantan-Indonesia, May 23-25,June 13-17, 2011 (7 days)

4. RSPO PNC Auditor for Main Audit of Mill and Estates London Sumatera, Site North

Sumatera-Indonesia, June 20-28, 2011 (9 days)

5. RSPO PNC Auditor for Tapian Nadenggan-SMART Group, July 4-8, 2011 (5 days)

6. RSPO PNC Lead Auditor for Pre Audit of PT ANJA Agri Binanga Mill and Estates, Site

ANJA Binanga & Tungkal Ulu, North Sumatera -Indonesia, Juli 18-20, 2011 (3 days)

7. RSPO PNC Lead Audit for Main Audit of Inti Indosawit Plasma Estates, Site ANJA

Binanga and Tungkal Ulu-Indonesia, Sep 12-14, 2011 (3 days)

8. RSPO PNC Lead Auditor for Pre Audit -2 of Salim Ivomas Perkasa Mill and Estates,

Riau-Indonesia, September 26-30, 2011 (5 days)

9. RSPO PNC Lead Auditor for Main Audit of PT ANJA Binanga Mill and Estates, Site

ANJA Binanga & Tungkal Ulu, North Sumatera -Indonesia, October 11-14, 2011 (4

days)

10. RSPO Supply Chain Lead Auditor for Main Audit of Dr. Oetker Foods Industry,

Oerlinghosen-Germany, November 7-11, 2011 (5 days)

11. RSPO PNC Lead Auditor for Pre Audit of Austindo Nusantara Jaya Agri Mill and

Estates, Site Binanga, North Sumatera -Indonesia, November 28-December 2, 2011 (5

days)

12. RSPO PNC Lead Auditor for Main Audit of Salim Ivomas Perkasa Mill and Estates,

Riau-Indonesia, December 19-23, 2011 (5 days)

13. RSPO PNC Lead Auditor for Pre Audit of ATSA Thailand, Feb 8-9, 2012 (2 days) and

June 2012 (6 days)

14. RSPO PNC Lead Auditor for Pre Audit of Perkebunan Nusantara !V Mill and Estates,

North Sumatera -Indonesia, Feb. 20- 24, and May 28-31, 2012 (10 days)

15. RSPO PNC Lead Auditor for Main Audit of Austindo Nusantara Jaya Agri Mill and

Estates, Site Binanga, North Sumatera -Indonesia, March 5-9, 2012 (5 days)

16. RSPO Supply Chain Lead Auditor for pre audit of Lam Soon Thailand, March 13-15,

2012 (5 days)

17. RSPO Supply Chain Lead Auditor for Main Audit of Lam Soon Thailand, April 29-May 5,

2012 (6days)

18. RSPO PNC Lead Auditor for Surveillance Audit of PT Aek Tarum Mill and Estates,

South Sumatera -Indonesia, May, 2012 (5 days)

19. Lead Auditor for RSPO New Planting Procedure of First Resources Group, PT Borneo

Persada Energy Jaya and Citra Agro Kencana, Indonesia, May, 2012 (4 days)

20. RSPO PNC Lead Auditor for Main Audit of ATSA Thailand, May-June 2012 (6 days)

21. RSPO PNC Lead Auditor for Surveillance Audit of PT Sahabat Mewah Sejahtera Mill

and Estates, Belitung Island -Indonesia, July, 2012 (6 days)

22. Lead Auditor for RSPO New Planting Procedure of First Resources Group, PT Borneo

Surya Mining Jaya and Maha Katya Bersamaa, Indonesia, September, 2012 (4 days)

Y


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2.3.2 Assessment Team Members

1. Wieke Savitri

Qualification


Bachelor degree of forestry (1998-2002) and Magister Science (2010-2012) from Bogor Agricultural University

Working Experience

August 2011-January 2012, PT. Mutu Certification International, Auditor ISO 9001:2008

July 2010-July 2011, PT. Ecosindo Laboranusa, consultant for environmental aspect

July 2005-July 2010, PT. Sucofindo (Persero), Surveyor, Verificator, Auditor, Quality & Environmental Officer

Dec 2002 – June 2005, PT. Putra Sumber Utama Timber-Hasko Group, Engineering Staff (R & D)

May 2002 – Dec 2002, PT. Musi Hutan Persada (Barito Pacific Timber Group), Engineering Staff (R & D)for Industrial plantation forest company

1999-2001, Bina Madani Education Centre, Education counsellor

RSPO Training - 05-10 Maret 2012: Indonesia Sustainable Palm Oil (ISPO) Lead Auditor Training

- January 2012: Indonesia Sustainable Palm Oil (ISPO) Inhouse Training

Other Training August 2009: Personnel competence certification for Environmental Impact Assessment (EIA) Compiler, Indonesian Consultant Expertise Assosciation (INTAKINDO), Jakarta Certificate No. 000037

- May 2009: Contract Management and Negotiation Training, Mandiri Consultant, Jakarta

May 2009: Lead Auditor ISO 9001 : 2008 Training, Sucofindo International Certification Services (SICS), Jakarta.Indonesia

2. Technical Expert : Supijatno (SY)

Qualification


- Doctoral degree in agriculture environment from Bogor Agriculture Institute (IPB).

Working Experience

Verivication of burned PT. Nabatindo Windu Lestari estate Central Kalimantan. Cooperation between Departement of Agronomy and Hortikulture IPB with PT. Asuransi Takaful Umum, 2012

Development of Minapolitan Regency Tojo Una-una Central Sulawesi Province. Cooperation between P4W LPPM IPB with Fishery and Sea Agency of Tojo Una-una Regency

Third Surveilence of PT. Pohon Emas Lestari Plasma, Nunukan Regency, East Kalimantan Province. PT. Primakelola, 2012

Due Deligent of palm oil estate PT Delima Makmur, Singkil

Regency Aceh Nangroe Darusalam province . PT. Sucofindo. 2012

Due Deligent of palm oil estate PT Muting Hijau Permai Merauke. URS International, 2008

Preliminary study of palm oil estate establishment PT. Dendymarker Indah Lestari Musi Rawas Regency , South Sumatera Province. PT Primakelola. 2011


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3. T

echnical Expert : Ujang Sheha

4. Faroby Faletehan (FF)

1 Qualification


Lecturer in Departement of Resources Economics and Environment, Faculty of Economics and Management, Bogor Agricultural University

Working Experience Evaluation of PNPM Green Program in South Sulawesi, North Sulawesi, North Sumatera and Bengkulu Province, World Bank – LPM Equator, 2012

Agricultural Economic and Social expert for RSPO Audit at PTPN IV North Sumatera, PT ANJ Belitung, PT Aek Tarum Sampoerna Agro South Sumatera, RSPO Audit at PT Inti Indosawit Subur, Jambi, 2011-2012

Agricultural Economic and Social expert for Monitoring and Evaluation of SRI Paddy Farm Models in Five Province with Ministry of Agriculture and Bogor Agricultural University, 2011

Agricultural Economic and Social expert for National Board of Climate Change Assessment with PT. Sucofindo, 2011

Agricultural Economic and Social expert for Mapping of Climate Change Vulnerability in North Sumatera Province with National Board of Climate Change and PT. Sucofindo, 2010

Agricultural Economic and Social expert for Problem Identification and Solution of Cocoa Estate Development in North Luwu District, South Sulawesi Province Ministry of National Education- Bogor Agricultural University

Establishment of estate development plan in Musi Rawas Regency. Cooperation P4W LPPM IPB with Musi Rawas Regency Government, 2010

Studi on land suitability for palm oil estate establishment PT. Daya Agro Lestari Musi Rawas Regency, South Sumatera Province. Cooperation between LPPM IPB with PT. Daya Agro Lestari. 2010

Pre Feasibility study on PT. Palmina palm oil estate in Banjar Regency, South Kalimantan. PT. Prima Kelola, 2009

Post Audit on palm oil estates of PT. Asian Agri Cooperation between IPB with PT. Asian AgrI. 2008

Feasibility study on rubber HTI and palm oil estate establishment in East Kutai Regency, East Kalimantan Province. PT. Prima Kelola. 2008

Preliminary study on establishment palm oil PT. Grand Mitra Utama dan PT. Grand Mitra Bakti, Sintang Regency, West Kalimantan Province. Cooperation between PT. Prima Kelola and ZTE, 2008

Appraisal of palm oil estate PT. Tahtulindo Agroyaman, PT. Aditarwan, PT. Duta Inti Palma Perkasa Sarolangun regency Jambi and PT. Ekajaya Multi Perkasa, PT. Arta Prigel, Musi

Rawas regency South Sumatera Selatan. PT. Prima Kelola. 2008

Study of PT. Agroraya Gematrans Land potential for palm oil plantation establishment in Keritang, Indragiri Hilir

regency Riau province PT. Prima Kelola, 2007

PT. Era Mitra Agro Lestari and PT. Jambi Agro Wijaya palm oil plantation appraisal , Sarolangun regency, Jambi province PT. Prima Kelola. 2007

Appraisal of PT. Solegna Group palm oil plantation, Lahat regency, South Sumatera province. PT. Prima Kelola. 2007


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1.1 Certification Body

PT. TÜV NORD Indonesia is a subsidiary of the German TÜV NORD Group. Our company is a market

leader in Indonesia for inspection, testing and certification services. Through more than 800 clients, we

offer not just a high added value service but also the trust and confidence embedded in our issued

certificates / reports. We satisfy not only our direct customers but also other stakeholders, like regulators

and interested society including NGOs, through our competent auditors, inspectors and analysts. In this

assessment, PT. TÜV NORD Indonesia was collaborated with TUV NORD Thailand.

Under its HQ in Germany, PT. TUV NORD Indonesia is a member of International Accreditation Forum

(IAF) and accredited by DAR–Germany, and locally accredited by the Indonesian Accreditation Committee

(KAN). Services provided by the Strategic Business Unit Systems Certifications are: Food Safety

RSPO REQUIREMENT ASSESSOR QUALIFICATIONS COMPLIANCE

Fluent in local languages and English. Local language is Indonesia

All asessor Fluent in Indonesia language and English Y

Field working experience in the palm oil sector, or a demonstrable equivalent.

AM, WS Having experience in RSPO P&C Certification audit as well as RSPO Supply chain audit as a trainee.

Y

Good agricultural practices(GAP), integrated pest management (IPM), pesticide and fertilizer use.

SY Y

Health and Safety assessment on the farm and in processing facilities. (For example OHSAS 18001 or occupational. Health and safety assurance system).

AM Having experience in audit OHSAS 18001 Y

Workers welfare issues and social assessment experience. (For example with SA8000 or related social or ethical accountability codes).

FF Having experience as agricultural social and economic expert in various assessment

Y

Environmental and ecological assessmenting. (For example experience with organic agriculture, ISO 14001 or environmental management systems).

SY

AM

Having experience for auditing of technical and environmental aspect of palm oil plantation

More than 15 years for preparing the environmental impact assessment and ISO 14001. Preparing ISO 14001 for estates, contractors, power plant, etc. Having experience in lots of Environmental Impact Assessment Project while working in one of environmental consultancy company in 2008

Y

Economic issues AM Having experience in feasibility study of several projects with The World Bank, UNDP, UNIDO

Y


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Management System ISO 22000, GMP, HACCP, Information Security Management System ISO 27001,

Social Accountability SA 8000, Medical Device Directive MDD ISO 13485, Occupational Health and Safety

OHSAS 18001, Product Certification: GS-Marking, CE-Marking, SNI Marking, Inspection for ISPS Code,

Clean Development Mechanism (CDM) Validation & Verification, British Retail Consortium, BRC Issue 5.

1.2 Outline of How Stakeholder Consultation Was Managed

1.2.1 Summary

As part of document review, auditor team has reviewed list of stakeholder meeting provided by ATSA. The letter were sent to all stakeholders including the agenda of the meeting. They were invited to give any comments on several issues related to them, such as:

Information about RSPO to the public and stakeholders Company approach to community development. Environmental protection. Biodiversity conservation. Opportunities for employment. Provision of housing, sanitation, amenities and educational support. Participation in decision making. If there any complaints and grievance, land conflict Any other issue, both positive and negative that relevance to the assessment.

1.2.2 Issues Raised by Stakeholders

According to the minute of meeting, auditor found that most of stakeholders agreed that ATSA and estates have had a positive influence in the area.

Did ATSA and estates provide information on the RSPO certification exercise including plans for safety and health to the public and stakeholders?

Does ATSA and estates hold regular meetings on community development?

Does ATSA and estates respond well to complaints in respect of RSPO P&C implementation?

Is there a clear grievance and complaints procedure in the company?

Are there still any complaints on land acquired by estates for planting oil palm?

Is there any environment impact caused by the operations of either ATSA or 7 estates?

Are there any conflicts not yet solved satisfactorily?

Is there a procedure for settlement of conflicts communicated to the local community?

Does ATSA and estates meet with stakeholders regularly to discuss on issues on community development?

Are the workers paid in accordance with government regulations?

Is there a system to disseminate information quickly in emergencies to the local communities around the palm oil mills and supply bases?

Are there any flora and fauna found in estates or even nearby estates?

Have stakeholder ever asked for any information and data to ensure the transparency for the estate and mill? If yes, what kind of document did you review?

Result of the public consultation with stakeholders are reported under the principle 6 above.


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1.2.3 List of Contacted Stakeholders

No Stakeholder

Alamat No HP

Jabatan Pejabat Saat Ini

1 Camat Mesuji M. Denin Desa Pematang Panggang 0813 68764000

2 Camat Mesuji Raya Karsudin Aguscik S.Sos Desa Kemang Indah 0812 7152421, 0813 68090800

3 Kapolsek Mesuji AKP Amriawan Pematang Panggang 0815 33833052

4 Kapolsek Mesuji Raya Aiptu Zulkarnain Desa Sumbu Sari 0815 32970400

5 Danramil Mesuji Kap. Inf. Usman Pematang Panggang 0813 73290685

6 Kepala Desa Kali Deras Kadek Arya Desa Kali Deras 0828 80604336

7 Ketua KUD Bina Sawit Utama

Totok Susanto Desa Kali Deras 0828 7292635, 0813 67780830

8 Kades Sumber Deras Singgih Desa Sumber Deras 0828 80477087

9 Ketua KUD Citra Sawit Mandiri

Marzuki Desa Sumber Deras 0828 80112969

10 Kepala Desa Cahya Mulya H. Cikwan Desa Cahya Mulya 0813 73889973

11 Ketua KUD Jaya Bersama Marwin Hasibuan Desa Cahya Mulya 0821 75125271

12 Kepala Desa Kembang Jajar

Nurhadi Desa Kembang Jajar 0828 80453221

13 Ketua KUD Mekar Sawit Hidayat Desa Kembang Jajar 0828 80499290, 0852 67983470

14 Kepala Desa Suryakarta Purnomo Desa Suryakarta 0857 58517444

15 Ketua KUD Tunas Harapan Herijono S.P. Desa Suryakarta 0828 7053653

16 Kepala Desa Surya Adi Thompson Desa Surya Adi 0812 73315555

17 Ketua KUD Surya Adi Sutiono Desa Surya Adi

18 Kepala Desa Margo Bhakti Supardi Desa Margo Bhakti 0813 7760008

19 Ketua KUD Surya Bakti Mulyono Desa Margo Bhakti 0852 73082881

20 Kepala Desa Makarti Mulya

H. M. Jakfar Shodik Desa Makarti Mulya 0813 73800641

21 Ketua KUD Marga Mulya Sugeng Desa Makarti Mulya 0877 96600080

22 Kepala Desa Jaya Bhakti Lamidi Desa Jaya Bhakti 0812 72188820

23 Ketua KUD Sinar Jaya Joko Windiono Desa Jaya Bhakti

24 Dokter Puskesmas Mesuji dr. Pendi Blok D Surya Adi

25 Kepala Desa Sumber Baru Suradi Desa Sumber Baru 0852 73114838

26 Ketua KUD Rahayu Bhakti Andi Agus Kuncoro Desa Sumber Baru

27 Kepala Desa Mulya Jaya Amroni Desa Mulya Jaya 0813 73981110

28 Ketua KUD Mulya Jaya Darmadi Desa Mulya Jaya 0852 73503752


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No Stakeholder

Alamat No HP


29 Kepala Desa Mekar Wangi Totok Arif Riswanto Desa Mekar Wangi 0856 69273296

30 Ketua KUD Mekar Sari Wakri Desa Mekar Wangi

31 Kepala Desa Karya Mukti Iwan Desa Karya Mukti 0852 73022710

32 Ketua KUD Sumber Rejeki Rejani Desa Karya Mukti 0813 67342650

33 Kepala Desa Sumbu Sari Supriyadi Desa Sumbu Sari 0858 32410899

34 Ketua KUD Karya Makmur Kostalani Desa Sumbu Sari 0819 30679797

35 Kepala Desa Kemang Indah

Edi Sucipto Desa Kemang Indah 0858 38047584

36 Ketua KUD Tekad Mandiri H Kamilin Desa Kemang Indah 0858 32521621

37 Kepala Desa Balian Makmur

Mulkan HR Desa Balian Makmur 0858 32775600

38 Ketua KUD Panca sawit Makmur

Nur Kawan Desa Balian Makmur

39 Kepala Desa Bumi Arjo Didik Wan Nugroho Desa Bumi Arjo 0813 3648 6819

40 Kepala Desa Sungai Sodong

Maonah Sungai Sodong

41 Kepala Desa Pagar Dewa Kunci Rahman Desa Pagar Dewa

42 Kepala Desa Dabuk Makmur

Marzuki H. R. Desa Dabuk Makmur

43 KUD Makmur Bersama Sindu raharjo Desa Makmur Bersama

44 Kepala Desa Suka Mukti Sutamar Desa Suka Mukti

45 Dokter Puskesmas Mesuji Raya

dr. Heri Desa Sumbu Sari 0812 7832870

46 Kepala Sekolah SDN 1 Sumbu Sari

Yuncik, S.Pd I Desa Sumbu Sari

47 Kepala Sekolah SDN 2 Sumbu Sari

Desa Sumbu Sari 0813 67674205

53 Kepala Sekolah SMP N Mesuji Raya

Desa Mesuji Raya

54 Kepala Sekolah SMA N Mesuji Raya

Desa Mesuji Raya

55 Kepala SMK Negeri Mesuji Raya

Desa Mesuji Raya

56 Kepala Sekolah SMP N 1 Surya Adi

Desa Surya Adi

57 Kepala Sekolah SD N 3 Surya Adi

Desa Surya Adi

58 LSM Peduli Lingkungan NURDIN Desa Surya Adi Kecamatan Mesuji Raya, Kabupaten Oki, Sumsel

0812 71262139

59 CV. RUPALESTA Dra Ir. HERTANTI KUSTINI

PALEMBANG 0813 67283408


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No Stakeholder

Alamat No HP


60 CV. INDAH MAKMUR Sri Surani Desa Makarti Mulya

61 CV. CAHAYA BINTANG AHMAD WARSITO DESA DABUK REJO, email [email protected]

0812 27570004, 0852 88684578

62 CV. PUTRA MUSTIKA

63 PT. BUMI INDAH MULTI PERKASA

RIPIN L JL. RESIDEN ABDUL ROZAK NO.D3 KEL. SEI SELAYUR PALEMBANG

0812 7104870

64 CV. TUNAS ERA ABADI ANDY KOSASIH PALEMBANG, email [email protected]

0812 63950000

65 KOPKAR SELAPAN JAYA DARUL KUTNI JLN.BASUKI RAHMAD 788 PLG

0812 71290526

67 SERIKAT PEKERJA SAMPOERNA AGRO

Budi Nugraha Desa Sumber Baru, Kec. Mesuji Raya

085366748108

2 Assessment Findings

2.1 Summary of the Findings by Criteria

Objective evidences were obtained separately for each of the indicators for mills and estates in the certification assessment. The information was comprehensively asked from 1 mill and 2 estates. The results for each indicator from the different operational areas were aggregated to assess to assess the overall conformances of the company’s operations to each criterion. A statement is made for each indicator on the finding. A detailed description of the Non-Conformities is given in Section 3.2.

The following is a summary of the findings for compliance with the RSPO Principles & Criteria for Indonesia (INA)

Table 2-1 Summary of Findings by Criteria

FINDINGS/COMMENTS COMP- LIANCE

Criterion 1.1 (C.1.1) Provide adequate information to other stakeholders on environmental social and legal issues relevant with RSPO Criteria, in appropriate languages and forms to allow for effective participation in decision-making

ATSA still maintain a procedure for communicating with stakeholders (Prosedur Komunikasi, Partisipasi dan Konsultasi (P-SAG-RO-QES-07), or Communication, Participation and Consultation) and a mechanism to resolve conflicts (Prosedur Mekanisme Penanganan Konflik (P-SAG-RO-CAS-03), or Mechanism to Resolve Conflict dated 1 September 2010). No revision so far to these procedures. The reord of communication was recorded in the Stakeholders Communication, form LB-SAG-RO-QES-070001. During the annual surveillance audit , ASA-2, it was observed 30 letter from stakeholders asking proposal for social helps. Most of them ask for help of road greader, school and social building renovation. The responses of social help was prepared by the General Affair Department and all of them was recorded and resumed in Master List of Record, FM-SAG-RO-QES-0200001. These records shall be kept for 5 (five) years.

Yes


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Criterion 1.2 (C.1.2) Management documents are publicly available, except where these are prevented by commercial confidentiality or where disclosure of information would result in negative environmental or social outcomes

All management documents on legal, environmental, health safety and social issues are the responsibility of CAS (Corporate Affair Service) Department in Head Office. The legal documents, include Izin Lokasi (Site Permit), Izin Usaha Perkebunan (Plantation Operation Permit), HGU (Land Use Title) and the environmental documents for ANDAL (Environmental Impact Analysis) approved by Badan Lingkungan Hidup Daerah (BAPEDALDA) Tingkat II (Regional Environmental Body Kabupaten Ogan Komering Ilir (OKI)). Various environmental parameters are measured and reported six- monthly in Laporan Pelaksanaan Rencana Pengelolaan Lingkungan Hidup dan Rencana Pemantauan Lingkungan Hidup (RKL & RPL). All the records are properly kept in the CAS Department in Head Office or General Affairs Department in each unit for the proper periods, e.g., safety, health and environment reports for 5 years, social records 10 years and legal records indefinitely (1.2.2), and are available on request. The environmental and social data are presented during the yearly public consultation with stakeholders as part of its CSR program. The assintances from ATSA to the community such as renovation aid for schools, roads, bridges,, e.g., Posyandu (integrated healthcare service post and health education to promote human hygiene), sanitation, fogging, agricultural skills training for the locals (estate workers and smallholders), skills training for school teachers, scholarships available, tree planting, waste treatment for land application such as EFB for plasma estates. The HCV areas are also informed to stakeholders to ask their cooperation in protecting them (HCV areas).

Yes

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

ATSA and estates have established procedure to review any updates related to laws and regulations in P-SAG-RO-SUS-07, Identification and Evaluation of Legal Aspect (Identifikasi dan Evaluasi Aspek Hukum dan Persyaratan Lainnya) Rev.01 dated 01.10. 2012. Sustainable Departement officer in the mill of the corporate is responsible for the update laws and regulations, including validating / renewing licenses and permits, and makes sure that they are comply and updated in every 6 months. Identification and evaluation of legal compliance are recorded in format FM-SAG-RO-SUS-070001. List of relevant laws and regulations in Indonesia applicable for both mill and estate was available, included the land right, environment, agriculture on the use of chemical, waste disposal, boiler inspector license, health and safety, and other releted legal requirement.

Yes

Criterion 2.2 (C.2.2) The right to use the land can be demonstrated and is not legitimately contested by local communities with demonstrable rights ATSA mill and estates have full the right to use the land for palm oil estate. SMM has license or land permit from the governmental concern such as Tanda Daftar Perusahaan, Daftar Ijin Lokasi, Sertifikat HGU, Ijin Usaha Perkebunan, (Company Registration Location Permit, Certificate of HGU, and Plantation Permit ). Auditor cheked the validity all of them, and found the compliance to the government regulation. The boundaries of ATSA land were easily identified being demarcated and their identification numbers corresponding with points in the maps in HGU (Land Use Title) registered with BPN Kabupaten Ogan Komering Ilir (National Land Agency of Ogan Komering Ilir). Scattered boundary stones were encountered along the legal boundaries of all the estates. Most of them were observed to be properly maintained. List and photograph of boundary stones were available and they appeared properly maintained. The legal status of boundary stones was approved by Badan Pertanahan Nasional (National Land Body). General Affairs Department and Legal Department in Head Office is responsible for resolving any conflict over land. Currently, there are no claims on ATSA land by anyone.

Yes

Criterion 2.3 (C.2.3) Use of land for oil palm does not diminish the legal rights or customary rights of other users, without their free, prior and informed consent. As far as could be ascertained, there is no customary right of other users because all area of land has hold by the facility.

Yes


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

The company is committed to economic and financial sustainability of the palm oil business. An annual plan is outlined in the five years financial projections, the annual management plan, and annual budget plan for 2013 - 2017. Annual budget plan include production forecast, operating cost production cost. For mill budget includes FFB received and processed, CPO and PKO production details, crop yield projections and income. Replanting program was available and projected for 5 years, 2013-2017, and reviewed on yearly basis.

Yes

Criterion 4.1 (C.4.1) Operating Procedures are appropriately documented and consistently implemented and monitored

The company has Standard Operating Procedures with the best practices for its mill and estate operations. The mill and estates have been certified to QMS ISO 9001, EMS ISO 14001 and HSE management SMK3 for their management systems by TUV NORD and the Ministry of Labour of Indonesia. Most of the Standard Operation Procedures are incorporated in the SM-K3 management system. The following procedures have been implemented for sustainable palm oil production:

a. SOP for Oil Palm (nursery practices, land preparation, planting, upkeep, harvesting, waste management, HCV and management of hazardous wastes, e.g., agrochemical containers);

b. SOP for Palm Oil Mill [fruit processing, boiler operations, power generation, water treatment, electrical systems, quality (including monitoring of CPO parameters), dispatch and laboratory inspection of incoming fresh fruit bunches]; and

c. Manual for Health & Safety (SM-K3).

There are also SOPs on safe working practices, both in the mill and estates, e.g., application of pesticides, use of PPE, emergency preparedness and response. iThe company also developed ntegrated management system procedure for the plasma smallholders (P-SAG-KBN-PLS-01), the procedure already socialized to KUD Bina Sawit Utama, KUD Citra Sawit Mandiri, KUD Jaya Bersama and KUD Mekar Sari

Updated SOPs are sent to the Mill / Estate Managers whenever there are changes made, and then submitted to the Quality Environmental System in Head Office for approval. The obsolete procedures are withdrawn. Monitoring records from inspections are kept with proper identification. Some of updated procedures such as :

P-SAG-KBN-PML-24/ 16 Maret 2012/ Rev 1 Prosedur Pemangkasan dan Pembersihan : potongan pelepah disusun dengan membentuk huruf U.

P-SAG-KBN-PRD-02/16 Maret 2012/ Rev 1 Prosedur Panen Tandan Buah Segar:

P-SAG-KBN-OPA-02 Prosedur Pemeriksaan Panen TBS

P-SAG-RO-PCR-05, Rev.01, dated 01.10.2012

P-SAG-RO-HRS-05, Rev.01, dated 01.10.2012

P-SAG-KBN-LMB-01, Rev.01, dated 01.10.2012, P-SAG-PKS-LMB-01, Rev.00, dated 01.10.2012

The performance of each mill / estate work station is monitored for each shift and recorded daily and the result is summarized in monthly activity report As the company has been implemented QMS, there is internal audit conducted annually. However, quality inspection was not conducted consistenly as required by Procedure P-SAG-KBN-PRD-02. It was found in Mesuji Estate Division III Block 10B harvested the day before that loose fruit were scattered > 40 pieces in harvesting point areas and there was ripe FFB left on the palm while loose fruit scattered around the tree > 40

No NCR-AT-001)


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pieces. A minor NC was issued.(NCR-AT-001)

Corrective action with documented evidence has been submitted and accepted by auditor.

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

The company fertilizes its palms annually to the recommendations of an independent laboratory based on leaf and soil analysis data. Frond sampling is done in each blocks yearly for N, P, K, Ca, Mg, B and Cu. The last LSU was conducted in April 2012The analysis showed that the nutrient status of N (2:53), P (0158), K (0.96), Mg (0.29), Ca (0.70) and B (17) in general are in optimum condition.The soil analysis test is carried out every 5 years for N, P, K, Ca, Mg, B, Cu, Zn and Fe. The last soil analysis was done in 2005.

Fertilization in Belida Estate using NPK 12,12,17,2 TE 1.5 -2.0 kg / plant / year; Urea 1.50 to 3.25 kg / plant / year, RP 2,25 kg / plant / year, MOP 2 0.50 to 3, 00 kg / plant / year, Borate 0.2 -0.3 kg / plant / year and Dolomite 0.50 kg / plant / year) while in Mesuji Estate using NPK B 0.25 kg / plant / year; Urea 1.25 to 3.00 kg / plant / year, RP 1.0 to 2.75 kg / plant / year, MOP 1.50 to 3.25 kg / tan / year, Borate 0.2 -0.3 kg / plant / yr, Borate 0:10 kg / plant / year and Dolomite 0.50 to 1.0 kg / plant / year) has been conducted in accordance with the dosage recommendations given.

As part of the agronomic practice to improve soil fertility and reduce waste, EFB is applied as mulching for oil palms at Belida Estate, .especially for immature plants in Block 01, 07 ABC, 20,10, 17 and 23 with the dosage 30 ton/ha/year. Some blocks in Mesuji Estate also get EFB application but not much as in Belida Estate due to the transportation..

Yes

Criterion 4.3 (C.4.3) Practices to minimize and control erosion and degradation of soils

Data of soil type and topography maps in Belida Estate and Mesuji Estate are available. The entire area of land in Belida Estate is classified as mineral soil (Typic Endoaquepts, Plinthic kanhapluduls). The entire area of land in Mesuji Estate is classified as mineral soil (Typic Endoaquepts, Aquickanhapudult, Plinthic kanhapludults). According to USDA classification, the soil type is Ultisols, according to FAO/ UNESCO, it is classified as Acrisols.

Belida Estate has land slope dominated by 0-12% covering 74% of the total area of the estate, the rest have a 4-24% slope covering 26% of the total area of the estate. The land slope in Mesuji Estate mostly flat.

Since the land slope is generally flat to gently rolling both in Belida Estate and Mesuji Estate, the soil and water conservation measures undertaken are planting LCC and the addition of organic material by EFB application. From the ANDAL done (based on data in 2005) the average soil erosin loss is 10 t / ha / year, or equal with 0,84 mm/year, given the soil bulk density of 1.19 g/cm

3.

This is a low figure indicative of good erosion control. The soil erosion level was calculated according to USLE method (Universal Soil Loss Equation).

Regular road maintenance is carried out according to Budget 2013 and the realization in Program Perbaikan Jalan. consist of main road, production road and collecting road and also maintenace of ditches. The road maintenance program conducted manually or by mechanical such as compacting, grading, compacting and cambering and also ditch or just adding mixture of grave and sand.

Yes Yes


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As the soil type in Belida Estate and Mesuji Estate is mineral and there are no fragile soils (including peat) the company does not have any plan to manage them in both estates.

Criterion 4.4 (C.4.4) Practices to maintain the quality and availability of surface and ground water

To avoid the contamination of river water, the company does not apply fertilizer and pesticides to its oil palm in the riparian zones – a 50 meter belt along the river banks - and no replanting of oil palm will be done along all 13 km of river banks in Blocks 16, 17, 20, 24 and 25. The riparian zones are clearly demarcated by sign boards, and has been planted intensively with rows of bamboos var. Striata (bambu ampel kuning), Bambusa vulgaris var.vitata (bambu ampel hijau) and Bambusa bambos (L.) Voss (bambu duri liar).along the river banks since 2011.

The company has established a standard for water requirement to process FFB. The daily water consumption is recorded in Form Monitoring Penggunaan Air, including water consumption by the mill and employee housing complex. Checks on the records of water consumption found that they complied with Izin Penggunaan Air Tanah (Ground water consumption permit by Province South Sumatra).

Monitoring of BOD is done monthly by UPT Laboratorium Lingkungan-Badan Lingkungan Hidup Sumatra Selatan. The BOD levels and other parameters must comply with the local requirements in the Liquid Waste regulations in environmental decree by Province of South Sumatra No. 18/ 2005. The BOD data are submitted six-monthly in RKL/ RPL to BAPEDALDA (Regional Environmental Monitoring Body). The last report on semester II 2012 showed the level was below the maximum standard (100 mg/l).

Yes

Criterion 4.5 (C.4.5) Pests, diseases, weeds and invasively-introduced species are effectively managed using appropriate Integrated Pest Management (IPM) Techniques

The company has formulated an Integrated Pest Management (IPM) Program with an Early Warning System (EWS) (Prosedur Monitoring Hama (P-SAG-KBN-PML-15) and Pengendalian Hama Daun (P-SAG-KBN-PML-16)). IPM is practiced incorporating cultural, biological, mechanical or physical methods to minimize the use of chemicals, e.g., planting beneficial plants (cultural method), such as Bunga pukul delapan (Turnera subulata) and air mata pengantin (Antigonom leptosus) to harbour predators of the crop pests. Eradication of outbreaks of leaf-eating bagworm (ulat api, especially Setora nitens) is by biological control using a virus taken from the insects themselves. The barn owl (Burung hantu, scientifically Tyto alba) is protected and encouraged as a natural predator of rats.

Regular census is carried out on the pest situation by monitoring their occurrence on palm fronds, and the data recorded in Ringkasan Sensus Hama Daun (FM-SAG-KBN-PML-150201). Census of Tyto Alba is conducted monthly in Belida Estate, of the 113 existing nest boxes in Belida Estate most of which were inhabited and 22 were damaged, however in Mesuji Estate was not conducted consistenly.

Procedure P-SAG-KBN-PML-18 stated that installation rat bait in mature palms will be conducted if there is no introduction and development of Tyto alba in those areas. In Rat Cencus Summary Report in Mesuji Estate Division II Block 12A, 12B, 23A, 23B, 23C, 24B, 24C, 25A, 25C, 25D, 26A, 26B, 26C, 26D, 27C during April 2013 the rat attack was above threshold of 25%, however, no control action had been taken while there was no information of Tyto alba cencus and no location

No

NCR-AT-002


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maps of bird cages/ nest boxes.

A minor NC was issued. (NCR-AT-002).

Corrective action with documented evidence has been submitted and accepted by auditor. There is monitoring record of pesticide toxicity available on site. Criterion 4.6 (C.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 company has a procedure on how to apply agrochemicals, according to Peraturan Menteri Pertanian No. 07/Permentan /SR.140/ /2007, or Regulation No. 07/ Permentan /SR.140/ 2/2007 Ministry of Agriculture Republic of Indonesia). All the agrochemicals used are registered and approved by Pusat Perizinan dan Investasi Sekertariat Jenderal Departemen Pertanian 2008, or Invesation and Permit Center, Agriculture Department, Republic of Indonesia

The pesticides use in 2012 mostly herbicides such as: Round Up, Ally, Wedrol, Trendy, Agristik, Gramoxone, Garlon., since no severe attack of insects in both estates. Checks on the records of agrochemicals used found that they complied with the regulation.

Regular training for female chemical sprayers was conducted by field foremen, supervised by the estate assistant managers. The foremen and assistant managers had themselves been trained by the agrochemical supplier,

For handling restricted pesticide such as paraquat, the training have to be conducted by Pesticide Commitee Body, there were only 5 of 15 spraying workers in Belida Estate and 5 of 19 spraying workers in Mesuji Estate who had Restricted Pesticide Applicator Certificate, it’ s against the Decree of Agriculture Ministry No. 434.1/Kpts/TP.270/2001.

A major NC was issued. (NCR-AT-003).

Corrective action with documented evidence has been submitted that restricttive pesticide training has been conducted for all workers who contacted with paraquat on 27 June 2013 by PT. Syngenta (supplier), in cooperation with Pesticide Commitee of North Sumatra. Auditor has reviewed the corrective action and accept it.

The company has a procedure to store agrochemical wastes and empty containers in a secured area – a B3 (hazardous and toxic materials) waste warehouse - before collection by a licensed contractor (Prosedur Pengendalian Limbah B3(P-SAG-KBN-LMB-01). Records of the hazardous wastes stored are kept in Laporan Berita Acara Pengembalian karung (FM-SAG-KBN-PML-040001 in compliance with the Material Safety Data Sheet (MSDS) in Government Regulation (PP) No. 74 of 2001.

A written policy regarding reduction of restricted pesticide such as paraquat had not been established yet, it was found in Belida Estate that use of paraquat shows increasing trend, in 2011 as many as 0 liters, in 2012 as many as 442.87 liters and up to April 2013 as many as 210.40 liters.


Corrective action has been submitted with evidence a Memorandum Letter from Managing

No

NCR-AT-003

NCR-AT-004


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Director dated on June 20, 2013 regarding restricted use of paraquat. In 2014, no budget of paraquat in Belida Estate. Auditor has reviewed the corrective action and accepted it.

There was evidence of regular medical check-ups for workers involved in handling hazardous chemicals; the last records showed that ATSA carried out the follow-up action recommended by the Regional Hospital in Ogan Komering Ilir for workers who needed further medical treatment.

The company has policy that pregnant and breast-feeding women are prohibited from working with pesticides, interview with women workers confirmed that they understood the policy and they could have substitute works.

Criterion 4.7 (C.4.7) An occupational health and safety plan is documented, effectively communicated and implemented. ATSA has established a Safety, Health and Environmental (HSE) policy dated October 1

st 2010. the

socialization has been done on December 23rd

2010 involving all workers from Belida Mill, Belida Estate, Mesuji Estate, contractor and supplier. To implement the policy, the management of ATSA appointed the Steering Committee on Occupational Health and Safety or Panitia Pembina K3 (P2K3), Dinas Tenaga Kerja No. 1358/D.Naker-Trans/BW/2011, dated April 18. 2011 for Belida Mill and Estate, and No. 1369/D.Naker-Trans/BW/2011 for Mesuji Estate, dated April 18. 2011. A safety engineer on a daily basis does monitor and inspect all facilities of mill operation relating to emergency conditions. Records of mill facilities and its operation are kept properly and identified and retrievable in the safety engineer’s room. If there is an accident in the mills caused by the workers violating a working procedure or other instructions, investigation of the accident is to be conducted and distributed to mill manager as of the agenda in safety meeting. In one of the mills which should conducted safe practices in accordance with environment safety. Assessor found that all Fire extinguisher in pump house was regularly checked. There was HIRAC (Hazard Identification and Risk Assessment Control) available for mill and estates, updated on November 2012. All function both in mill and estate has completed this asessment Auditor observed that the estates show their implementation on Safety and Health with the identification of risk source objectives, targets and programs . The estates report to Safety and Health Coordinator regarding the progress of programs on monthly basis. Training plan program 2013 for identification hazard and control of risk was documented and recorded to consider set of safety program for all workers. Record of training, socialization of OHS, morning meeting, certificate of training, use of safety equipment such as fire extinguisher were available. OHS There was procedure deal with accident and emergency preparedness, P-SAG-QES-15, Emergency Respond Procedure ( Prosedur Penanganan Kecelakaan dan Kesiagaan dan Tanggap Darurat ), Training record includes:Emergency Responds dated on 22.05.2012, for Emergency Team, First Aid training for Belida Estate and Mill was held in 24.05.2012, for supervisor and medical team, conducted by doctor and nurses of estate clinic. The emergency drills and evacuation practice are regularly performed in December 2012 for Belida Mill Evaluation of the effectivity of the procedure, emergency team preparedness, and emergency instrument was available . For Mesuji Estate was performed in 23 November 2013. The mill workers which have potentially impact of noise are provided with ear muff or ear plug. So far these worker exposed to high noise levels have sent yet for Audiometric tests in December 2012 and the result there was no employees having problem with their hearance. Auditor has interviewed the employees exposed to high noise levels and found there was no complaints raised. Auditor verified that the usage of PPE both in mill and estates was regularly monitored by Safety Officer.

Workers that exposed to highrisk were identified and regular health examination was conducted as stated in SOP Perobatan dan Perawatan, P-SAG-RO-HRS-07 which all employees, especially those in high risk work shall have an annual health examination held by Balai Hiperkes Dan Keselamatan Kerja Provinsi Sumatera Selatan (Berau of Occupational Health and Company Hygiene, Province of South Sumatra). The results recorded in Laporan Hasil Pemeriksaan Kesehatan Berkala Tenaga Kerja. The latest report was on Medical

Check Up performed by Hiperkes, September 2012, for all worker in mill and estate. During audit it was

No

NCR-AT-005


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found fertilizer packaging workers in Mesuji Estate didn’t wear appropriate PPE, i.e: masks, gloves as requiredi WI_SAG-KBN-PML-2102 Aplikasi Pupuk Anorganik.

During audit it was found that first aid box in spraying vehicle was empty, the condition of cotton and gauze brought by foremen in Belida Estate was unsuitable.


Corrective action with documented evidence has been submitted and accepted by auditor.

Criterion 4.8 (C.4.8) All staff, workers, smallholders and contractors are appropriately trained.

Management of AEK TARUM SAMPOERNA AGRO mill and estate still maintain the procedure to improve

the competency for its worker through procedure P-SAG-RO-HRS-02 dated on September 01, 2009, as well

as for its subcontractor. The procedure mentioned the training mechanism for its staff, worker,

subscontractor, and outgrower farmer in accordance with workers’ positions and competences. Training

programmes are formulated on yearly basis. There are several training programmes for workers, suppliers,

and contractor, inisiated by Aek Tarum Head Office such as.:

1. Integrated Sustainability Management Training in Palembang (January 10, 2012)

2. Basic Training of Agronomy (February 27, 2012)

3. Emergency Response Training in Belida and Mesuji Estate (September 18-21, 2012)

4. Hazardous/Toxic Material and Waste (September 4-5, 2012)

5. Application of Restricted Pesticide in AEK TARUM SAMPOERNA AGRO Training Center (May 9, 2012)

6. ISCC and GHGi (11-15 September 2012)

8. Awarenes and Gap Assessment RSPO and ISPO in AEK TARUM SAMPOERNA AGRO (June 14, 2012)

All training record are documented in FM-SAG-RO-HRS-020001, Record of Training (Rekaman Pelatihan). The training records for 2012, including attendance lists, photographs, and training material were available and maintained properly. There was evaluation of the effectiveness of the training for all those trained participants and recorded in FM-SAG-RO-HRS-020003 Training Evaluation (Evaluasi Pelatihan) . Interviews with staffs and workers of mill and plantations showed that they are aware of the risk of their job, to environment and safety and health. The auditor found that the training was evaluated and confermed that the training was effective and improve the competence of worker. The evidence that operator of hazardous waste storage in Belida was available

The employees who exposed to high noise levels are provided with appropriate information about the risk. Interviews with worker in mill and estate showed that they understand the important of personnel protection equipment (PPE) and its purpose, and about sustainable palm oil management in general.

Yes

Criterion 5.1 (C.5.1) Environment aspects of estate and mill management, including replanting, that have environmental impacts are identified, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continuous improvement.

Aek Tarum Sampoerna Agro Mill and Estate has performed first Environmental Impact Assessment

(AMDAL/RKL-RPL) based on Deree of Pemerintah Propinsi Sumatera Selatan qq Bapedalda no

594/KPTS/BAPEDALDA/2005, dated on 28.10. 2005. The report was updated each semester in Laporan

Pengelolaan dan Pemantauan Lingkungan Hidup / RKL-RPL (Monitoring Report of Environmental

Management and Monitoring Program. The content of RKL-RPL report including the monitoring of physical

aspect such as waste water, air emission, and noise level. The last update was in September 2012. This

document was submitted to the Bapedalda in Biro LH SUmsel 16 Mei 2013.

Yes


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Criterion 5.2 (C.5.2) The status of rare, threatened or endangered species and High Conservation Value habitats, if any, that exist in the estate or that could be affected by estate or mill management, shall be identified and their conservation taken into account in management plans and operations.

The company had am internal HCV assessment done in June 2010 by Quality and Environmental System (QES) Department, which was trained by Yayasan Kelapa Sawit Berkelanjutan Indonesia (YASBI) and the Forestry Faculty of Bogor Agricultural University.

It is strongly recommended that the HCV assessment report should be revised and peer review by approved HCV assessor should be conducted since the content of the report was not relevant anymore (OFI).

There was no evidence of weekly patrol by foremen in form FM-SAG-KBN-NKT-020002 to prevent violation in HCV area in Belida Estate as stated in Procedure P-SAG-KBN-NKT-02 Pengelolaan dan Pemantauan KBKT. A major NC was raised. (NCR-AT-006)

The company has submitted corrective action and evidence that weekly patrol in HCV area now regularly conducted.

No

NCR-AT-006

Criterion 5.3 (C.5.3) Waste is reduced, recycled, re-used and disposed of in an environmentally and socially responsible manner Waste and pollution sources have been listed in Metoda Identifikasi dan Evaluasi Aspek Lingkungan (FM-SAG-HO-QES-090001) in accordance with its related procedure, Prosedur Identifikasi Aspek Lingkungan (P-SAG-RO-QES-09). ATSA has a licence to store the hazardous and toxic wastes in accordance with decree Ijin Bupati OKI no 66.1/14/KEP/BLH/2012 dated 29.10.2012 until 20.10.2015 before collection by a licensed waste collector. ATSA has a procedure to store agrochemical wastes and empty containers in a secured area – a B3 (hazardous and toxic materials) waste warehouse – before collection by a contractor (prosedur pengendalian limbah di kebun P-SAG-KBN-LMB-01). Records of the hazardous wastes stored are kept in Laporan Berita Acara Limbah B3 (FM-SAG-KBN-PML-040001). There was waste management and disposal plan to avoid or reduce pollution through procedur P-SAG-PKS-LMB-01, dated 01.01.2011, Prosedur Pengendalian Limbah Non B3 DAN Limbah B3 and P-SAG-PKS-LMB-01, dated 01.01.2011. Prosedur Pengendalian The company has disposed hazardous and toxic waste (medical waste, used lamps, used chemical container) to licenced waste collector, i.e PT Nirmala Tipar Sesama, which has the permit for collecting the hazardous wastes through Ministry of Environmental Decree (Keputusan Menteri Lingkungan Hidup) no. 128 tahun 2010, dated 17.06.2010, valid until 2015. There is Memorandum of Undersatanding (MoU) between Aek Tarum Sampoerna Agro and PT Nirmala Tipar Sesama was also available, MoU no 034/SA/SPK/1/2013. Last disposed of hazardous and toxic waste to Nirmala Tipar was dated 15,05 2013 for Belida Mill and Estate, and in 07.05.2013 for Mesuji Esstate.The waste balance and waste manifest were available at warehouse. Potential for Improvement:

Resume of all hazardous waste should be available.

Working instruction for hazardous waste should be available at site, such at solid waste warehouse, and clinic

Signboard for temporary warehouse of hazardous waste should be completed with its validity of the license.

Identification for fresh sand and used sand for oil and chemical absorbent should be avaialble

Yes

Criterion 5.4 (C.5.4)


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

ATSA estates have planned to use of renewable energy in which it continually strives to improve energy efficiency and use more renewable energy. The company committed to reduce the use of fossil fuel by managing the operation and transportation. Pressed fiber of empty FFB and palm kernel shell will be used to fire in the boiler to generate steam for electricity generation. The use of oil or fossil fuel in 2012 was about 90 kilo liters for the purposes of genset start up FFB transport vehicles and any transportation. Fibre and shells used as energy source in the mill (bio fuel) .Records of fibre and shells used as renewable energy used were recorded as “Laporan operasional Turbin , laporan Penggunaan Cangkang” and “Laporan penggunaan BBM Solar dan Vehicle” and monitored in the manager’s Monthly Report on the mill. Efficiency analysis was available and records on energy used was maintained properly.

Yes

Criterion 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. ATSA has a zero burning policy, and has a procedure P-SAG-KBN-PML-03 for Palm Felling And Land Clearing (Prosedur Penebangan dan Pembersihan ). ATSA management has high commitment to do zero burning policy. This zero burning policy was supported by managing director of ATSA. There is a procedure established for emergency response to land burning (prosedur Kesiagaan dan Tanggap darurat di kebun P-SAG-KBN-DRR-01). Records of its implementation were sighted Assessor observed during surveillance assessment that mobile fire brigade for quick response to fire emergency has been established by memorandum on June 2012

Yes

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

AEK TARUM SAMPOERNA AGRO UNIT has procedure P-SAG-PKS-01, on identification of all waste

and pollutions sources. Identification of waste was conducted during implementation of Environmental

Management System ISO 14001:2004, and it was recorded in format FM-SAG-RO-SUS-080001

Identifikasi Aspek dan Dampak Lingkungan dan Bahaya Risiko K3(Environmental Aspect and Impact

Assessment) . There was identification of the sources of pollution. At mill, air pollution was from boiler

and generator. The effluent (POME) was disposed to waste water treatment plant , through the procedure

P-SAG-PKS-PRS-11, dated 01.09.2009. Liquid wastes, e.g. POME, are processed through series of

settling ponds where anaerobic bacteri was used to digest wastes and reduce BOD. The treated effluent

was discharged to public sewer. Auditor checked and verified that all waste water, hazardous waste, and

emissions complied to applicable regulation and reported in Laporan RKL-RPL (Monitoring

Environmental Report) every six month and submitted to the Environmental Agency of North Sumatera

Province. The boilers equipped with smoke density monitors and the monitoring of emission from boiler

in accordance with the Regulation of the Minister of the Environment No.13 of 1995 on the testing of

static emission test.

Yes

Criterion 6.1 Aspects of estate 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 continuous improvement. ATSA mill and estates have established the social impact assessment report integrated in the Environmental Impact Assessment (AMDAL/RKL-RPL) There was not many information about social impact assessment for estates and mill in this assessment. The social impact assessment noted the positive impacts on activities related to labour vacancy and increase in community wages. The data on social and economic analysis and impacts were collected through questionnaire surveys. There was regular monitoring and management of social impact recorded in Laporan Monitoring Aspek Social, Social Aspect Monitoring Report, Social impact

Yes


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of company was discussed during stakeholder meeting on May 24 , 2013. There were records of Corporate Social Responsibility (CSR) activities for year 2011. The program covered such as training on best practices for palm oil to farmer and smallholder, contribution given to community, such as road repair, school contribution In 2012 PT. Sampoerna Agro has done some CSR activities, such as assisting the government in the construction of the police station Mesuji, contibute to build a mosque in Mesuji, roadwork, computer assistance to SD Surya Adi and others. Moreover, the company also helps community around mills and estate to sprinkled water on the road that traversed by trucks, because of dust. In 2012 also, at November, the results of Social Environment Impact Assessment Analysis of PT. Aek Tarum, has been accomplished. This analysis is cooperated with Faculty of Forestry, Bogor Agricultural University. Criterion 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

ATSA have an effective communication and consultation procedure, P-SAG-RO-QES-07 (Communication, Participationand Consultation Procedure. The procedure covers the scope, purpose of the procedure, internal and external communication method, documentation and follow-up action. Based on the consultation procedure, the public consultation meeting is done yearly. Last meeting was on May 25, 2012 in Belida Estate.Based on the attendance list records for each estate, the invited stakeholders include the head of village surrounding the estate, whereas regent, sub-regency chief, local and antional NGOs (LSM PeduliLingkungan, LembagaBantuanHukumPalembang, and Yayasan Lembaga Konsumen Palembang (YLKP) Records of minute’s meetings were available. Indeed, the topic was only concerned to the local communities surround the estate, thus one session meeting with more general topic has to be conducted and all stakeholders within the list have to be involved.However, there was no record of minute of meeting of the stakeholders meeting and the follow up action taken for the meeting as well. For this reason the auditor issued the non conformity, NC# 3/3

The company has made correction for this NC by providing the minute of meeting of stakeholders meeting which has been conducted on May 25, 2012.

To avoid the occurance of non conformity, the company has made the corrective action by revising procedure, P-SAG-RO-QES-07 (Communication,ParticipationandConsultation Procedure which mention the obligation to collect all records of communication and consultation with the communities or stakeholders in the relevant. The auditor has verified the evidences of the revision of the procedure and the records of stakeholder/public consultation meeting and its photographs.

In surveillance at May, 23, 2013, there is a communication and consultation between millers, local communities and other affected or interested parties. There are many stake holder came to this meeting, such as from mills, secretary of district, TNI, police, community, partner, academician and other stakeholders. There is a minute meeting from this activity (CSR activity). According to this meeting, mills have many CSR activities in area around the mills, but mills should increase publication of his activities to government, community, media and NGO. Meanwhile, when mill gave support CSR to community, mills should involve many stakeholders to maintain sustainability of this activities.

Yes

Criterion 6.3 There is a mutually agreed and documented system for dealing with complaints and grievances, which is implemented and accepted by all parties. ATSA still maintain and implement a procedure integrated in the procedure Communication and Handling of Conflict, P-SAG-RO-CAS-03 dated 1.9.2010 (Mekanisme Penanganan Konflik)) for handling complaints, grievance and dispute. Internal complaints and grievances are resolved according the Mutual Working Agreement (Perjanjian Kerja Bersama). These procedures have been communicated to all stakeholders at each mill and estates. It was noted that the responses from stakeholders have been positive. During public consultation, the audit team confirmed that there were no serious complaints, grievances, and disputes at the

Yes


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moment. Local communities and stakeholders obey and respect the company legal rights, reciprocated by the company’s respect for their traditional rights.

In surveillance at May, 23, 2013, there is a mutually agreed and documented system for dealing with complaints and grievances, which is implemented and accepted by all parties. In this meeting, the company should more active to maintain cooperation. This action is a good activity to make CSR getting better.

For additional information, based on the results of discussions with Village Apparatus Surya Adi (Secretary), there had been an issue related to the negative impact of mill's truck which often passed the community area around mills/estate. Peoples complain about the dust caused by the truck. Further, peoples ask apparatus to complain this problem to mills, then apparatus write a complaining letter to mills through management. It turns out that feedback from mills/state is positive. the company with a positive , the company was apparently already has a program to address this problem by deploying the company truck to pour water on the road. So the problem was solved. Criterion 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 stake-holders to express their views through their own representative institutions. During the surveillance audit, the audit team studied the whole compensation mechanism, and found it satisfactory with no legal action being taken by any party against another. The mechanism has been communicated to the stakeholders. Checks on the records and interviews with the local communities confirmed that there is no current claim on any land although there are some dissatisfied locals with questionable cases, possibly trying to dig gold from ATSA. A check with the Chief of Local Community confirmed that they have no customary rights. Nevertheless, ATSA is ready to hear them out.

The current condition is in good condition, there are no problems with the local community and other stakeholders regarding legal rights, particularly the land issues. This is because the company, PT. Sampoerna Agro has been established a long time ago, before the registration of the RSPO, besides, this company is a company that does not build estates from beginning, but bought from other companies, so that when the displacement from previous owner to the PT. Sampoerna Agro, the legality of land tenure has been checked.

Yes

Criterion 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.

Wage payment is the common term that the company needs to follow as it is compulsory required by South Sumatera Governor’s Decree inSK Gubernur No. 825/KPTS/Disnakertrans/2011, tentangUpah Minimum SektoralProvinsi Sumatera Selatan Tahun 2012, tanggal 2 Desember 2011.

There was also the There Labour Agreement between PT Sampoerna Agro TbkSampurna Agro Union, established by decree of Manpower and Transmigration No. province of South Sumatra. 146/Nakertrans/2010 (in accordance with Law 13 in 2003) which contains the rights and obligations of employees.

Auditor assessed the list of workers, complete with the wage amount, date of birth, date of joining SMM, basic salary, fringe benefit or premi, additional, overtime, allowance, gross, deduction, nett), dan signature, payment slip, detailed with all allowance and deduction is available. The receipt of payment was gave to all workers on the payment day.

Each worker has their contract works, based on Decree of Working Agreement (so called Surat Keputusan Penetapan Perjanjian Kerja Bersama) oleh Kepala Dinas Sosial, Tenaga Kerja dan Transmigrasi about registration of Perjanjian Kerja Bersama PT AekTarumSampoerna Agro (ATSA), dated November 17, 2011 which was signed by ATSA and Labour Union (PUK FSP KepMigasdanUmum PT ATSA), and approved by The Officer of Worker Affair. A labor policy such as non discriminatory practices and forces labor either full time employee or contractors are socialized in agreement with those people. Worker and contractor are required by the terms of their contract/agreement to have their fair compensation.

Yes


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All employees even contractor have been provided with the suitable housing, water supplies, medical care (clinic, including doctor, nurses and medicines and bed) and welfares by the company. Worker housing receive piped potable water which is tested regularly to ensure that it safe for human use. The facility provided the huge water jar to store the rainfall for being used as drinking water. It is also tested regularly to ensure it is always safe for human consumption. All workers housing are also provided with free electricity. Meanwhile, there’s a new facility for employees, day care for their kids.It is free, the parents is recommended to bring groceries and vegetable for their kids then it is cooked by the nanny in day care.

Meanwhile for salary/wage, according to Memorandum of this company, no 0015/MD/II/2013, there is increasing of salary since February, 1 2013, from Rp 50.247 to Rp 57.440. This memorandum based on Decree of South Sumatra Governor No. 745/KPTS/DISNAKERTRANS/2012 about Minimum Wage of South Sumatra Province 2013.

For labour law, this company has a socket book about agreement between company and labor union refer to Law No 13/2003 about Labour. In this socket book, there was rules about contract between company and labour, working hours, deductions, overtime, sickness, holiday entitlement, maternity leave, reasons for dismissal, period of notice, etc. Criterion 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. ATSA has policy regarding the recognizing freedom of association under internal memorandum. The policy includes freedom of association, respect for every worker to have the righ tto form and to be a member of labour union. The Union and management of ATSA negotiate the Perjanjian Kerja Bersama, or Mutual Working Agreement, every 2 years, according Surat Keputusan Dinas Tenaga Kerja dan Transmigrasi No. 146/Nakertrans/2011 dated 01.01.2011 This Agreement allow them to establish a labour union in accordance with national legislation UU No. 13 2003. There was a regular meeting between minutes of some meetings were checked and the meetings found to be properly conducted.

Latest information from the Labour Unions, they held a meeting on May 18, 2013, one focus of the discussion is about adjustment of the wage to management of Sampurna Agro Ltd, related to increase of fuel prices. Other discussed at this meeting was the fulfillment of the rights of workers and families by the company.

Potential for Improvement: The person in charge of Worker Association in Mesuji should be well informed about his responsibility.

Yes

Criterion 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 programs. Children are not exposed to hazardous working conditions.

ATSA has a policy on child and female workers (Memorandum No. 0016/DMD/XII/2010” on 9.12.2010) signed by a Director and socialized in agreements with suppliers / contractors (6.7.1). No one under 18 years of age is to be employed. Records of personal data of employees - age, marital status, position and rank, location of work, date of commencing employment - are kept. Checking the records confirmed that no one under 18 years old has been employed - in compliance with Indonesian national legislation UU RI No. 13 Tahun 2003, article 68.

Yes

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

ATSA is an equal opportunity employer, with promotion mainly based on merit. The Human Resources Regional Head identifies and recommends candidates for promotion to a selection board at ATSA Head Office. ATSA is also committed to providing jobs for the locals, even though they are reluctant to accept due

Yes


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to their increased affluence brought about by the operation of ATSA. Vacancies are posted on notice boards in the mill/estates, and also advertised in the local newspaper. A policy on equal rights regardless of race, caste, national origin, religion has been established and also socialized in agreements with suppliers/ contractors. Estate manager, environmental officer and sprayer for example. However, all estate managers are male. Meanwhile, in surveillance 2013, there is a woman with position as a head of administration.

In addition, based on the book of Mutual Working Agreement, the company must provide religious on leave allowance to their workers to celebrate religious holidays. Another case, in this rule is transparancy system of holiday for workers if they need on leave (Chapter V, Article 20), as well as to obtain permission to leave the task relating with religious (Chapter V, Article 21). Criterion 6.9 A policy to prevent sexual harassment and all other forms of violence against women and to protect their reproductive rights is developed and applied.

The Human Resources Regional Head of ATSA has established a policy on prevention of sexual harassment and protection of reproductive rights of its female workers (Kebijakan Pencegahan Pelecehan Seksual, Perlindungan Hak Reproduksi dan Mekanisme Penanganan Keluhan dated 13.7.2010). The policy is displayed at various locations in the mill / estate offices and socialized to the workers in each unit - in Belida Mill and Mesuji Estate on 4.11.2010, and Belida Estate on 6.11. 2010.The rules have been explained to all workers to ensure their understanding.

The policy also contains rules for enforcements which are a part of CSR program. Rules for enforcement have been given though the training for workers according to Indonesia’s labor standard to ensure their understanding. Records of the training done during 10, 11 and 31 August 2011 are kept and maintained. A gender has been appointed using announcement letter number 031/2554 dated December 28, 2011, signed by the managing director. This committee consists of 11 members. The rule of this committee will responsible any concern to woman and report these concerns to the top management of company directly. Female employees are entitled to pregnant and childbirth leave of 3 months for each instance and also allowed to breastfeed for up to 6 months at least 30 minutes everyday. In case of any violation to women, the procedures to deal with the violation case have been trained to women employees in order to ensure that they understand the grievance mechanism. Based on the result of interview women employees, it confirmed that that they understood the policy and knew the grievance mechanism for complaints such as go to any members of gender committee.

Meanwhile, based on the book Collective Bargaining Agreement, Article 20 of Chapter V are the rules regarding on leave for menstruation, pregnancy, childbirth / miscarriage. While the rules of menstruation leave, apparently based on the results of the meeting, it is stated that menstruation leave for a while is suspended, this is due to some workers who use this excuse to not work.

Regarding baby delivery cost, according SPSA meeting with management at May, 18 2013, it is decided that management will provide guarantee letter for worker or his family which baby delivery with normal or caezar to hospital.

Yes

Criterion 6.10 Growers and mills deal fairly and transparently with smallholders and other local businesses. ATSA keep maintained an fair, legal and transparent agreements with its suppliers/subcontractors and independent farmers. Even though there are no purchase contracts to bind the smallholders they will be informed by the mill on the daily FFB price through phone and the daily price of FFB will be posted at the mill gate. A list of FFB smallholders is kept and updated for the purpose of informing the daily FFB price. The smallholders are free to decide where to sell their FFB. The price of FFB is determined by the purchasing department of SMM, based on to the procedure FFB price calculation ATSA has fair, legal and transparent agreements with its suppliers / contractors and plasma smallholders. There are transactions and purchase contracts with contractors and local companies on sale and purchase of FFB, FFB transport and service, maintenance and repair of mill equipment. The price for FFB is determined by the Head of Regional Plantation Section, Agriculture Department of Province South Sumatera via a mechanism based on the CPO price, kernel price (index K) from all palm oil producers and palm oil estates in South Sumatra every two weeks. The FFB price is set at a meeting

Yes


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attended by the representatives of KUDs, or of the plasma smallholders themselves. The minutes of the last meeting are given in Surat 005/185-VI.3/BUN dated 17 December 2010. Checks with KUD Belida and KUD Mesuji confirmed that they had copies. Documents were sighted and interviews with some contractors confirmed that they understood the terms of their contracts well and thought them fair, legal and transparent. Any grievance can be brought up through IMS Prosedur : Mekanisme Penanganan Konflik (P-SAG-RO-CAS-03) dated 01.9.2010. Interviews with the contractors and some plasma smallholders found no grievance about the price

Currently, the pattern of payments to farmers is through cooperatives that have collaborated with companies, or cooperatives where farmers are members, such as Adi Surya KUD, KUD Belida and KUD Mesuji.

After payment is made by the company to KUD, and cooperatives that distribute the payments to farmers according to the amount and value of production the plasma farmers.

For information, the appointment of a third party to perform activities in the garden / plant, the appointment of the company / supplier is dependent on the value of his work, if the value of project is under Rp100 million, the contract made by the estate/mills, while if the value of project is over Rp 100 million, the appointment of the company decided by branch / office Palembang. Criterion 6.11 Grower and mills contribute to local sustainable development wherever appropriate.

The ATSA management has strong commitment to contribute to community development and documented in Quality, Safety and Health Environmental, for Sustainable Policy (QSHES Policy), signed by the President Director. The Social Impact Assessment Report was issued. The activities planned were varied, such as socialization of shareholders program for the locals, aids for local teachers, free medical treatment for the locals, making a well for locals, etc. There was the activities planned during September 2012 until April 2013 were mostly realized as per schedule with some ignorable delays, except for making a well program which was planned on May 2012, have not been realized yet, thus has to be rescheduled. Example of contribution of ATSA :

1. Tax of surface water usage 2. Land & Building tax 3. CSR program report such as roadworking, lending a heavy equipment, health aid, etc.)

This record is kept in appropriate room under controlled General Affairs Department.

There is a minute meeting from this activity (CSR activity). According to this meeting, mills has many CSR activities in area around the mills, but mills should increase publication of his activities to government, community, media and NGO. The company should involve many stakeholders to maintain sustainability of this activities.

Alternatively about contribution of sustainable development to local mills are holding stakeholder meetings once every year. At this meeting, all stakeholders are given the discretion to exclude ideas and the problem about impact of the existence of the company. Some contribution has been awarded by company is through CSR, whose program is constitute the adjustment between desire of society with company. Then, if there is a problem, it can be resolved by win win solution. In addition the company also helped provide training to the plasma in order to benefit both parties. No significant improvement.

Yes

Criterion7.0 No new planting planned on any estate included in the scope of this assessment. Principle 7 is not applicable to this assessment. Criterion 8.1 Growers and mills regularly monitor and review their activities and develop and implement action plans that allow demonstrable continuous improvement in key operations. ATSA management has committed in order to continuous improvement throughout RSPO principles and criteria. Concerning prevention of emission (release of carbon emission to environment generated from palm estate and methane capture by CDM program), the environmental impact assessment was adopted to ensure vehicles and operating boiler emissions for uncontrolled parameters were detected. Reduced

Yes


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consumption of dangerous agrochemicals (paraquat) was inspected and confirmed in accordance with top management‘s of ATSA QSHES policy. The used agrochemical jars or containers have been handled and stored in proper chemicals warehouse. Record of reducing consumed paraquat (gramoxone) inspected for year 2007 (0.26 litre/ha), 2008 (0.13 litre/ha), and 2009 (0.01029 liter/ha) and no longer used in 2010, 2011, and 2012. Another improvement has been made and found during the surveillance are shower house for the chemical sprayers and Identification, segregation, and providing warehouse of hazardous waste.

3.2 Identified Non Conformances

This section gives an over view of new or revised non-conformities raised during this assessment and of action taken to close out non-conformities rose during the previous assessments.

3.2.1 Resume of Audit Results

See Error! Reference source not found.Table 3-2 below.

Table 2-2 Resume of Audit Results

Indonesian National Interpretation of RSPO Principles and Criteria

P&C 1.1 1.2 2.1 2.2 2.3 3.1 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 5.1 5.2 5.3 5.4 5.5 5.6 6.1 6.2 6.3 6.4 6.5 6.7 6.8 6.9 6.10 6.11 7 8.1 # NC

Status

1 1 1 1 1 1 2 1 1 1 2 2/3 2 1 1 3 1 1 1 1 1 1 1 1 1 1 1 1 1 1 NA 1 -

#NC 0 0 0 0 0 0 1 0 0 0 1 2 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 - 0 6

NOTE: Audited:

“1” Conforming; “2” Minor Non-Conformity; “3” Major Non-Conformity; “NA” not applicable, “#NC” : Number of Non-Conformities found

AUDIT OUTCOME

2 Non-Conformities MAJOR 4 Non-Conformities MINOR


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3.2.2 Detail of Non Conformity


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3.3 List of Potential for Improvement

During the audit, the auditor found some are for improvement as listed below

No Potential for Improvement PNC

1 There is SOP and Working Instruction for handling of hazardous material, P-SAG-RO-PCR-05, Rev.01, dated 01.10.2012 and P-SAG-RO-HRS-05, Rev.01, dated 01.10.2012 and P-SAG-KBN-LMB-01, Rev.01, dated 01.10.2012, P-SAG-PKS-LMB-01, Rev.00, dated 01.10.2009 for handling hazardous wastes. These Working Instructions shall be available in fuel tank, chemical and hazardous waste storage

Resume of all hazardous waste should be available at waste storage



4.1 jo 5.3

2 The emergency drills and evacuation practice are regularly performed in December 2012 for Belida Mill Evaluation of the effectivity of the procedure, emergency team preparedness, and emergency instrument was available . For Mesuji Estate was performed in 23 November 2013

4.7

3 . Working instruction for hazardous waste should be available at site, such at solid waste warehouse, and clinic



5.3

4 The procedure should be mentioned the agenda of stakeholder meeting. The the records of minutes meetings was available and should mentioned about the all meeting agenda activities.

The company should increase publication of his activities to government, community, media and NGO.

The Non Governmental Orgaization/ NGOs (LSM Peduli Lingkungan, Lembaga Bantuan Hukum Palembang, and Yayasan Lembaga Konsumen Palembang (YLKP) should be attend the meeting

6.2, jo

5 In the meeting with stakeholders regarding handling of conflict , the company should more active to maintain cooperation with the stakeholders

6.3

6 The person in charge of Worker Association and in Mesuji should be well informed about his responsibility

6.6

7 The meeting should be clear and mentioned the CSR program. 6.11


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APPENDIX 1 List of Abbreviations

BOD Biological Oxygen Demand NC Non Conformity

OER Oil Extraction Rate

CPO Crude Palm Oil

CSR Corporate Social Responsibility OSHAS Occupational Safety and Health Assessment Scheme

EFB Empty Fruit Bunch P&C Principle and Criteria

EMS Environmental Management System

FFB Fresh Fruit Bunch PK Palm Kernel

GPS Global Positioning System PKB Perjanjian Kerja Bersama (Collective Agreement)

HCV High Conservation Value POME Palm Oil Mill Effluent

HCVF High Conservation Value Forest PPE Personal Protective Equipment

R&D Research and Development

IPM Integrated Pest Management

RSPO Roundtable on Sustainable Palm Oil

RSPO NI Roundtable on Sustainable Palm Oil National Interpretation

SA8000 Social Accountability 8000

MOU Memorandum of Understanding SIA Social Impact Assessment

SOP Standard Operating Procedure

MSDS Material Safety Data Sheet


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Attachment B: Corporate Social Responsibility

PERMOHONAN DARI STEKEHOLDER PERMOHONAN DARI STEKEHOLDER

No. Surat Tgl.

Surat Asal

Pemohon Perihal

No. Surat

Tgl. Surat

Nama Unit

Kebun/PKS

Perihal Tgl. Surat

Tanggapan Berupa

1

140/061/MW-Mes/2012

02-04-2012

Kades Mekar Wangi

Permohonan bantuan bantuan alat berat untuk penimbunan jalan poros Desa Mekar Wangi Kec. Mesuji Raya

022/BL/IV/2012

14 April 2012

Kebun Belida

Permohonan bantuan alat berat

21-04-2012

Koord. Dengan BC Untuk Penimbunan & Rekrap Jalan

2

140/10/Mj-Mes-Ry/III/2012

31-03-2012

Kades Mulya Jaya

Permohonan Bantuan Pengerasan Jalan Menuju PKS Belida Desa Mulya Jaya

017/BL/III/20

12

31 Maret 2012

Kebun Belida

Permohonan bantuan pengerasan jalan

3

140/122/KI/Mes-ra/2012

20-03-2012

Sekdes Kemang Indah

Permohonan bantuan alat berat untuk pemasangan gorong-gorong Desa Kemang Indah

018/BL/III/20

12

31 Maret 2012

Kebun Belida


Koord. Dengan BC untuk memberikan bantuan

4

420/001/TK A SB/Mesra/2012

26-01-2012

Kepala TK Anggrek

Permohonan bantuan dana pembangunan gedung TK Anggrek Desa Sumber Baru

019/BL/III/20

12

31 Maret 2012

Kebun Belida

Permohonan bantuan dana

5

024/Plasma-Will-II/III/2012

20-03-2012

Asist. Plasma wil. III

Permohonan pemakaian alat berat untuk perawatan jalan alternatif C1 Desa Sumber Baru belakang warung PKS Belida

020/BL/III/20

12

20 Maret 2012

Kebun Belida

Prmohonan pemakaian alat berat

6

140/112/MS.LP.Jaya/2012

07-03-2012

Kades Mukti Sari

Permohonan bantuan alat berat untuk perbaikan jembatan, jalan, dan lapangan Desa Mukti Sari Kec. Lempuing Jaya

014/BL/III/20

12

12 Maret 2012

Kebun Belida


7 - 10-03-2012

Kepsek SMAN1 Mesuji Raya

Permohonan pengerjaan alat berat ( Greader ) untuk perataan lapangan SMA Negeri 1 Mesuji Raya

013/BL/III/20

12

12 Maret 2012

Kebun Belida


16-03-2012

Koord. Dengan BC U/memberikan bantuan grader

8

420/39/SMP N 7 / MESRA/D-DIK/2012

10-01-2012

Kepsek SMPN7 Mesuji Raya

Proposal permohonan bantuan pembangunan gedung kantor SMPN 7 Mesuji Raya

012/BL/III/20

12

12 Maret 2012

Kebun Belida

Permohonan pembangunan gedung

9

140/02/BA.Lemp/III/2012

12-03-2012

Kades Bumi Arjo

Permohonan perbaikan gorong-gorong/ cor bock dan rehabilitasi jalan poros desa Bumi Arjo

015/BL/III/20

12

17 Januari

2012 Kebun Belida

Permohonan perbaikan gorong-gorong

10

140/078/MS.LP.Jaya/2012

10-02-2012

Kades Mukti Sari

Permohonan pinjam alat berat untuk memasang gorong-gorong Desa Mukti Sari Kec. Lempuing Jaya

023/BL/IV/2012

14 April 2012

Kebun Belida


21-03-2012

Koord. Dengan BC untuk pasang gorong''


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No. Surat Tgl.

Surat Asal

Pemohon Perihal

No. Surat

Tgl. Surat

Nama Unit

Kebun/PKS

Perihal Tgl. Surat

Tanggapan Berupa

11

140/27/Kec.MesRy/2012

20-02-2012

Camat Mesuji Raya

Permohonan perbaikan jalan poros arah portal Bambu kuning s/d Kantor Camat Mesuji Raya

Belum

Dikirim

Permuhonan perbaikan jalan poros

12

114/ 140/SB.MR/I/2012

25-01-2012

Kades Sumber Baru

Permohonan bantuan alat berat untuk perbaikan jalan poros kebun IPBS s/d PKS Belida yang melalui Desa Sumber Baru

Belum

dikirim


13

140/01/SBS/Mes-Ra/2012

16-01-2012

Kades Sumbu Sari

Proposal pengajuan bantuan alat berat untuk penimbunan dan penyekrapan lahan calon stadion mini Desa Sumbu Sari Kec. Mesuji Raya

005/BL/I/201

2

19 Januari

2012 Kebun Belida


Koord. Dengan BC Untuk penyekrapan lahan

14 04/KI/Mes-ra/I/2012

09-01-2012

Kades Kemang indah

Permohonan bantuan alat berat dan pembangunan gorong-gorong RT 01, Dusun 1 Blok Pasar Desa Kemang Indah Kec. Mesuji Raya

004/BL/I/201

2

13 Januari

2012 Kebun Belida


Koord. Dengan BC untuk memberikan bantuan

15

420/12/PM.SS/KI/MesRy/2012

13 Maret 2012

Ketua Panitia PPM Sauqus salam

Permohonan Dana Pembangunan Masjid Sauqus Salam Pasar Kemang Indah

024/BL/IV/2012

14 April 2012

Kebun Belida


Koord. Dengan BC Untuk memberikan bantuan

16

140/101/SB. MESRA/IV/2012

7 April 2012

Kades Sumber Baru

Permohonan bantuan alat berat untuk penimbunan pondasi musholla dusun III dan desa sumber baru

021/BL/IV/2012

11 April 2012

Kebun Belida


17

140/14/Mj-Mes-Ry/2012

17 Mei 2012

Kades Mulya Jaya

Permohonan bantuan alat berat compact dan tangki air

026/BL/V/2012

21 Mei 2012

Kebun Belida


11 Juni 2012


18

140/68/Perm/MS-LPJ/2012

21 Mei 2012

Kades Lempuing indah


027/BL/V/2012

23 MEI 2012

Kebun Belida


28 Juni 2012


19

01/Pan.HUT.RI.I/Mj-Mes-Ry/2012

25 Juni 2012

Ketua Karang Taruna Mulya Jaya

Permohonan bantuan Dana HUT RI

029/BL/VII/2012

04 Juli 2012

Kebun Belida

Permohonan bantuan Dana HUT RI

2 Agustus 2012

Diberikan bantuan Rp 1.000.000


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No. Surat Tgl.

Surat Asal

Pemohon Perihal

No. Surat

Tgl. Surat

Nama Unit

Kebun/PKS

Perihal Tgl. Surat

Tanggapan Berupa

20

140/22/MJ-MES-RY/2012

13 Juli 2012

Kepala Desa Mulya Jaya


030/BL/VII/2012

17 Juli 2012

Kebun Belida


8 Agustus 2012

Sudah pernah diberikan bantuan dan alat juga masih digunakan di tempat lain

21

140/89/SB-MES-RY/2012

3 Juli 2012

Kepala Desa Sumber Baru

Permohonan bantuan alat berat untuk penyekrapan Jalan

031/BL/VII/2012

17 Juli 2012

Kebun Belida


6 Agustus 2012

Sudah pernah diberikan bantuan u/jalan alternatif C1

22

420/018/SDN 2 SBS/ UPTD-Mes-Ry/2012

22 Oktober 2012

Kepsek SDN 2 Sumbu Sari

Permohonan bantuan pengadaan komputer dan proyektor

017/BL/XI/2012

8-Nov-

12 Kebun Belida

Pengajuan proposal bantuan pengadaan komputer & proyektor

28-Nov-12

belum dapat dibantu

23

140/35/MJ-MI-S-Ry/2012

2-Nov-12

Kades Mulya Jaya

Permohonan bantuan alat nerat untuk perkerasan jalan poros

018/BL/XI/2012

6-Nov-

12 Kebun Belida


8-Nov-12

Koord.dengan BC untuk memeberikan bantuan

24

140/103/SB-MR/II/2012

9-Nov-12

Kades Sumber baru

Permohonan bantuan alat berat untuk pengerasan jalan

019/BL/XI/2012

14-Nov-

12 Kebun Belida


20-Nov-12


25

421/KI/Mes-Ra/XI/2012

24-Nov-

12

Kades Kemang indah

Permohonan bantuan alat berat untuk timbun parkiran masjid

Belum

dikirim

26

420/210/SMAN1-Mesra/D.Dik/2012

13 Desember 2012

Kepsek SMAN1 Mesuji Raya

Permohonan bantuan alat berat untuk meratakan halaman sekolah

Belum

dikirim

27

6 Desember 2012

Ka Sub Sektor Mesuji Raya

Permohonan bantuan alata berat untuk meratakan tanah

021/BL/XII/2012

14 Desember 2012

Kebun Belida


14 desember 2012


28

034/V/O.B/TS/06/2013

25 Maret 2013

Pimcab. Tapak suci lempuing


235/BL/IV/2013

4-Apr-

13 Kebun Belida



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No. Surat Tgl.

Surat Asal

Pemohon Perihal

No. Surat

Tgl. Surat

Nama Unit

Kebun/PKS

Perihal Tgl. Surat

Tanggapan Berupa

29

140/104/SB-MR/V/2013

25-Apr-13

Kades Sumber baru

Permohonan bantuan alat berat untuk membuat embung

296/BL/V/2013

10 Mei 2013

Kebun Belida



30 26-

Apr-13

Panitia Pelepasan TK Sampoerna Agro

Permohonan bantuan dana untuk pelepasan TK

301/BL/V/2013

13 Mei 2013

Kebun Belida


13 Mei 2013


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Attachment C: Module E – Mass Balance RSPO Supply Chain for Mill

STANDARD SOP/Policy/Others Records/Evidence

.1.1

E.1.Documented Procedure

a) Complete and up to date

procedures covering the

implementation of all the

elements in these

requirements.

√ There is a set of SOP developed to ensure the implementation of supply chain mechanism at mill, from receiving FFB, processing, storage, and despatch CPO, in Traceability and Mass Balance Procedure P-SAG-PKS-PR-14:

b) The name of the person

having overall responsibility

for and authority over the

implementation of these

requirements and

compliance with all

applicable requirements. This

person shall be able to

demonstrate awareness of

the facilities procedures for

the implementation of this

standard.

√ RSPO coordinator is in charge and have the authority to monitor the implementation of supply chain procedure, including the recording of incoming and outgoing of sustainable and non-sustainable oil.

There is a letter of Apointment from President Director to RSPO coordinator and its job desciption as well.

Job Description for RSPO

Coordinator), and Job Decription for

Mill Manager)

1.2 The facility shall have documented

procedures for receiving and

processing certified and non-

certified FFBs.

√ All recording of incoming and outgoing certified and non-certified FFB are documented in the Mill Daily Report (Laporan Harian Pabrik). The weighbridge ticket for transporting FFBs to the mills has indicated status of FFBs to identify and differentiate between non-sustainable and sustainable FFBs.

Implementation of the mechanism shall be

checked and verified in the surveilance

audit

Sampel of Daily and Monthly

Production Report, February 2012)

E.2 Purchasing and goods in

2.1 The facility shall verify and

document the volumes of certified

and non-certified FFBs received.

√ All documents and records of volumes of certified and non-certified FFBs received will be recorded in the Daily Production Report (Laporan Harian Pabrik)

RSPO procedure will be followed

up accordingly upon certification.

This will be checked during

surveillance audit

Sample of Daily Production Report, March 3,

2012

Sample of Monthly Production Report,

February, 2012

2.2 The facility shall inform the CB

immediately if there is a projected

overproduction.

√ This is not applicable as the mill has not yet received RSPO certification. Sales of

CSPO has not applicable yet.

E.3 Record keeping


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3.1 The facility shall maintain

accurate, complete, up-to-date

and accessible records and

reports covering all aspects of

these requirements.

√ Upon certification, all records will be maintained accordingly.

There will be a daily, monthly and 3 monthly basis report to monitor the incoming and outgoing oil based on the mass balance requirements. There was procedure to maintain records in PRS – SDV – 001 and PRS – SDV – 002, rev.00, dated September 01, 2009 regarding Document and Record Control, and Rev 01, December 17,2011

There was Master Lits of Record, dated

December 17,2011 that figure out all

relevant RSPO records, including for mass

balance supply chain

3.2 Retention times for all records and

reports shall be at least 10 (ten)

years.

√

3.3 a) The facility shall record and

balance all receipts of RSPO

certified FFB and deliveries

of RSPO certified CPO, PKO

and palm kernel meal on a

three-monthly basis.

√ a) There was mechanismon how

to calculate mass balance of FFB purchased as well as the CPO and PK to be despatch through the table Dayly Production Report. Standard operating procedure was in progress to be developed.

In the form Daily Production Report, and

Monthly Production Report, it has been

separate calculation between certified and

non certified FFB puchased

The record of implementation of the mass

balance calculation shall be checked and

verfied in the next surveilance audit.

b) All volumes of palm oil and

palm kernel oil that are

delivered are deducted from

the material accounting

system according to

conversion ratios stated by

RSPO.

√ NA NA

c) The facility can only deliver

Mass Balance sales from a

positive stock. However, a

facility is allowed to sell

short.

√ This statement will be elaborated in

the procedure of mass balance

calculation

The evidence of this will be checked and

verified in the nex surveilance audit.

3.4 The following trade names should

be used and specified in relevant

documents, e.g. purchase

√ This statement will be elaborated in

the procedure of mass balance

calculation

The evidence of this will be checked and

verified in the nex surveilance audit.

E.4 Sales and good out

4.1 The facility shall ensure that all

sales invoices issued for RSPO

certified products delivered

include the following information:

a) The name and address of the

buyer; b) The date on which the

invoice was issued; c) A

description of the product,

including the applicable supply

chain model (Segregated) d) The

quantity of the products delivered;

e) Reference to related transport

√ There was standar operating procedure/ SOP, ANJA-F&A-SOP-06, CPO and Palm Kernel Sales. In this SOP, it was confirmed that all sales invoices issued for RSPO certified products to be despatced include the information of:

- The name and address of the buyer;

- The date on which the invoice was issued

- Description of the product, including the applicable supply

There was no records available since the

mass balance supply chain mechanisme not

implemented yet. However, the SOP was

completed with format of invoice that include

all requirements mentioned in the procedure.


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documentation. chain model (IP/SG/MB) - The quantity of the products

delivered - Reference to related transport

documentation.

E.5 Training

5.1 The facility shall provide the

training for all staff as required to

implement the requirements of the

Supply Chain Certification

Systems.

√ There was training policy issued by

ANJA’ management

No.014/HR&GA/Training/07-2007

dated Juli 31,2007

There was no training records on mass

balance calculation to related staffs, but the

training program was available and the

implementation will be checked and verified

on surveillance audit

E.6 Claims

6.1 The facility shall only make claims

regarding the use of or support of

RSPO certified palm oil that are in

compliance with the RSPO Rules

for Communication and Claims.

√ The procedure will be followed up

accordingly upon certification. This

will be checked during surveillance

audit

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