Stage-1 Stage-2 [ ] PT IVO MAS TUNGGAL - RSPO · Prepared by Mutuagung Lestari for Ujung Tanjung...

PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 Prepared by Mutuagung Lestari for Ujung Tanjung Mill – PT Ivo Mas Tunggal

Roundtable on Sustainable Palm Oil Certification

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

Plantation Management/Owner : PT IVO MAS TUNGGAL

Plantation Name : Ujung Tanjung POM; Ujung Tanjung Estate,

Location :

Sub District of Kandis, District of Siak, Province

of Riau, Indonesia

Certificate Code : MUTU-RSPO/030

Date of certificate issue : 13 September 2013

Date of expiry of certificate : 12 September 2018

Assessment Assessment

Date PT. Mutuagung Lestari

Auditor Checked

by Approved

by

ST 1 22 – 25 April, 2013 Octo HPN Nainggolan; Marsudi Eko Santoso; Rudi Ramdani; Sandra

Purba Taufik

Margani

Tony

Arifiarachman ST 2 May 29 – June 8, 2013 Octo HPN Nainggolan; M. Syarip Lambaga; Ardiansyah; Rudi

Ramdani; Sandra Purba

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

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

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

MUTU Certification • Approved by RSPO Secretariat on June 2008

Assessment Submitted

to RSPO on: Approved

by RSPO on: Approved

by MUTUAGUNG LESTARI on:

ST 2 31 Juli 2013 10 September 2013 13 September 2013

http://www.mutucertification.com/


ASSESSMENT REPORT

SPO – 4006a.5 Prepared by Mutuagung Lestari for Ujung Tanjung Mill – PT Ivo Mas Tunggal

TABLE OF CONTENT

FIGURE

Figure 1. Location Map of PT Ivo Mas Tunggal Figure 2. Operational Map of PT Ivo Mas Tunggal

i ii

1.0 SCOPE of the SURVEILLANCE ASSESSMENT

1.1 National Interpretation Used 01

1.2 Organization Information 01

1.3 Type of Assessment 01

1.4 Location of Plantations, Mill and Area Statement 01

1.5 Description of Supply Base 02

1.6 Dates of Plantings and Cycles 03

1.7 Tonnage Certified 03

1.8 Other Certifications 04

1.9 Time-Bound Plan for Other Management Units 04

2.0 ASSESSMENT PROCESS

2.1 Certification Body 06

2.2 Assessment Team 06

2.3 Assessment Methodology, Assessment Process and Locations of Assessment 07

2.4 Stakeholder Consultation and List of Stakeholders Contacted 10

2.5 Date of Next Surveillance Visit 10

3.0 ASSESSMENT FINDINGS

3.1 3.2

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

11 43

3.3 Summary of RSPO Partial Certification 49

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

51

3.5 Summary of Arising Issues from Public, Management and Auditor Responses 56

4.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Signing of Assessment Findings 61

APPENDICES

1. List of Stakeholders Contacted in the RSPO Certification Process 62

2. Assessment Program 63

3. Glossary 65


ASSESSMENT REPORT

SPO – 4006a.5 Page i Prepared by Mutuagung Lestari for Ujung Tanjung Mill – PT Ivo Mas Tunggal

Figure 1. Location Map of PT IVO MAS TUNGGAL

PT Ivo Mas Tunggal


ASSESSMENT REPORT

SPO – 4006a.5 Page ii Prepared by Mutuagung Lestari for Ujung Tanjung Mill – PT Ivo Mas Tunggal

Figure 2. Operational Map of PT IVO MAS TUNGGAL


ASSESSMENT REPORT

SPO – 4006a.5 Page 1 Prepared by Mutuagung Lestari for Ujung Tanjung Mill – PT Ivo Mas Tunggal

1.0 SCOPE OF THE CERTIFICATION ASSESSMENT

1.1 National Interpretation Used National Interpretation, RSPO Principles and Criteria (P&C) for Sustainable Palm Oil Production, Republic of Indonesia - RSPO INA-NIWG, May 2008 and RSPO Supply Chain Certification Standard November 2011.

1.2 Organization Information

1.2.1 Company name IVO MAS TUNGGAL

1.2.2 Contact person Ismu Zulfikar

1.2.3 Company address and site address Plaza BII Tower 2, 30th Floor

JL. MH Thamrin No 51 Kav 22 Jakarta 10350 Indonesia

1.2.4 Telephone +6221 50338899 ext 1184

1.2.5 Fax +6221 50389999

1.2.6 E-mail [email protected]

1.2.7 Web page address www.smart-tbk.com

1.2.8 Company status Private

1.2.9 Management Representative who completed the application for certification

Ismu Zulfikar

1.2.10 Registered as RSPO member Registration Number: 1– 0056 – 08 – 000 – 00

Date : 17 June 2008

1.3 Type of Assessment

1.3.1 Scope of Assessment 1 Mill & 1 Supply Base

1.3.2 Type of certificate Single

1.3.3 Company names listed in the certificate PT Ivo Mas Tunggal

1.3.4 Number of management unit One (1) Palm Oil Mill (UJUNG TANJUNG Mill) with FFB Supply from Ujung Tanjung Estate

1.4 Locations of Mill, Plantations and Area Statement

1.4.1 Location of Mill

Name Mill Lokasi

GPS

Latitude Longitude

Ujung Tanjung Mill Kandis Kota village, Sub District Kandis, District Siak, Province of Riau

0° 58’ 11.85” N 101° 15’ 53.66” E

1.4.2 Location of Supply Base

Name of Estate Location

GPS

Latitude Longitude

Ujung Tanjung Estate Jambai Makmur village, Sub District Kandis, District Siak, Province of Riau

0° 58’ 10.54” N 101° 17’ 50,64” E

mailto:[email protected]

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


ASSESSMENT REPORT


1.4.3 Tenure

Private -

State 3,621.23 Ha

Community -

1.4.4 Area Statement

Total area 3,621.23 Ha

Mature area 3.601,66 Ha

Immature area - Ha

Mill 3.32 Ha

Emplashment 16.25 Ha

LC Programme - Ha

Occupation - Ha

HCV* 110.56 Ha

Others - Ha

* HCV area has been included into area that is managed

1.5 Description of Supply Base

1.5.1 Description of Mill

Name of Mill

Capacity

(tones/ hour)

FFB

(tones/ hour)

CPO Kernel PKO

Out put (tones)

extraction (%)

Out put (tones)

extraction (%)

Out put (tones)

extraction (%)

Ujung Tanjung Mill

60 256,685 49,060 19.11 13,204 5.15 - -

* Data source: Ujung Tanjung Mill Period May 2012 – April 2013

1.5.2 Description of estate

Name of Estate(s) Total Area

(Ha)

Planted Area (Ha)

FFB (tonnes/year)

Yield (tonnes/ha/year)

Supplied to Mill

FFB (tonnes/year)

%

Ujung Tanjung Estate 3,621.23 3,601.66 89,916.77 24.97 52,907.87 58.84

* Data source: Ujung Tanjung Mill Period May 2012 – April 2013

1.5.3 Smallholder(s) and other source

Name of source(s)

Member(s) Location Total Area

(Ha) FFB

(tonnes/year)

Supplied to Mill

FFB (tonnes/year)

%

Palapa estate District of Siak 69,441.50 910 1.31

Libo estate District of Siak 88,835.72 5,461 6.15

Sei rokan estate District of Siak 93,292.09 7,454 7.99

Kandista estate District of Siak 100,108.54 85 0.09

Samsam estate District of Siak 60,674.50 14 0.02


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Nenggala estate District of Siak 40,162.89 22,640 56.37

Rama bakti estate

District of Kampar - 23.011 -

Naga mas estate

District of Kampar - 21 -

Kirana Sumber Gemilang

- - - - 513 -

Timur Jaya Indomakmur

- - - - 733 -

Plasma Sei Tapung

2,768 District of Kampar - - 374 -

TBS LUAR 8 District of Siak - - 143,806 -

* Data source Ujung Tanjung Mill Period May 2012 – April 2013

1.5.4 Product categories FFB/CPO/PK/PKO

1.6 Dates of Plantings and Cycles

1.6.1 Age profile of planted palms*

Planting Year

Hectarage (Ha)

Name of Estare Ujung Tanjung

Total

1986 946.95 946.95

1988 782.81 782.81

1989 1,278.20 1,278.20

1992 230.46 230.46

1993 363.24 363.24

TOTAL 3.601,66 3.601,66

1.6.2 New Planting area after November 2007

Ha

1.6.3 Planting Cycle 1st/2nd Cycle Years

1.7 Approximate Tonnage Certified

1.7.1 Past Annual Claim Certified Product

FFB Production - Tonnes/year

CPO Production - Tonnes/year

Palm Kernel (PK) Production - Tonnes/year

Palm Kernel Oil (PKO) Production - Tonnes/year

1.7.2 Claim Certified Tonnage of FFB


ASSESSMENT REPORT


Name of Estate(s) Total Area

(Ha) Planted Area

(Ha) FFB

(tonnes/year) Yield

(tonnes/ha/year)

Ujung Tanjung Estate 3,621.23 3,601.66 89,916.77 24.97

TOTAL 3,621.23 3,601.66 89,916.77 24.97

1.7.3 Claim Certified Tonnage of Palm Product

Name of Mill Capacity

(tonnes/ hour)

FFB Processed

(tonnes/ year)

CPO Palm Kernel PKO

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Ujung Tanjung Mill

60 89,916.77 17,183.09 19.11 4,630.71 5.15 - -

1.8 Other Certifications

1.8.1 ISO 9001:2008/ISO 14001: 2004 -

1.8.2 OHSAS 18001:2007 -

1.8.3 HACCP -

1.8.4 Others -

1.9 Time Bound Plan Management Units

GROUP Mill Company Region Mill Estate (FFB Supplier) Certification Remark (Estate Entity)

IMT PT. IVOMAS TUNGGAL

SIAK-RIAU SSMM Samsam Mill

SSME Samsam Estate 2012 Certified

KNDE Kandista Estate 2012 Certified

PLPE Palapa Estate 2012 Certified


SIAK-RIAU LIBM Libo Mill LIBE Libo Estate 2012 Certified

NGLE Nenggala Estate

2012 Certified

SRKE Sungai Rokan Estate

2012 Certified


SIAK-RIAU UTJM Ujung Tanjung Mill

UTNE Ujung Tanjung Estate

2012 Certified

STPA Sungai Tapung Setate

2012 Certified

IMT PT. BUANA WIRALESTARI MAS

KAMPAR-RIAU

NSAM Naga Sakti Mill

NMAE Naga Mas Estate

2012 Certified

NSAE Naga Sakti Estate

2012

Certified

RBKE Rama Bakti 2012 Certified


KAMPAR-RIAU

KJNM Kijang Mill KJGE Kijang Mas Inti Estate

2012 Certified

KJNP Kijang Kencana 2012 Certified


ASSESSMENT REPORT


Plasma

IMT PT. RAMAJAYA PRAMUKTI

KAMPAR-RIAU

RRMM Ramarama Mill

RRME Ramarama Estate

2012 Certified

AYJP Amartajaya Plasma

2012 Certified


INDRAGIRI-RIAU

IDSM Indra Sakti Mill

IDLE Indra Lestari Estate

2012 Audited

IDSE Indra Sakti Estate

2012 Audited

INDA Indragiri Plasma 2012 Audited

IDSA Indrasakti Plasma

2012 Audited

IMT PT. BUMIPALMA LESTARI PERSADA

INDRAGIRI-RIAU

BPLM Bumipalma Mill

BPLE Bumi Lestari Estate

2012 Audited on July 2013

BPME Bumi Palma Estate


BSNE Bumi Sentosa Estate


IMT PT SAWITA KARYA MANUNGGUL

South Kalimantan

SWTM Sawita Mill SWTE Sawita Estate 2015

PMKE Pamukan Estate 2015

SWTA KKPA Sawita 2015

All unit under PT Ivo Mas Tunggal has been audited according to time bond plan, but there is 1 (one) unit that planned will be audited on 2015.


ASSESSMENT REPORT


2.0 ASSESSMENT PROCESS

2.1 Certification Body

PT Mutuagung Lestari

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

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

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

2.2 Assessment Team

2.2.1 Lead Assessor and Assessment Team

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

2. Marsudi Eko Santoso (Auditor). Bachelor of Agriculture, majoring in Agro technology. Followed Auditor/Lead auditor Management System Certification (ISO 9001-2008), Awareness HACCP certification, training of RSPO auditor and training of RSPO Lead Auditor, ISPO Lead auditor training, awareness green house gas and OHSAS technical expert. Currently he works for Independent Certification Body.He had involved activities RSPO and ISPO certification assessment as an auditor. In Stage-1 actifity he is assess the aspects of best management practices, Integrated Pest Management, Worker welfare and Occupational Health and Safety.

3. Rudi Ramdani (Auditor). Bachelor of Agriculture Majoring in Agronomy, Agriculture Faculty of Bogor Agricultural University. He has experienced more than two years as an operational staff in a private oil palm plantation company in Indonesia. He also followed training he namely: Indonesian Sustainable Palm Oil auditor, Awareness RSPO, Management System Certification (ISO 9001-2008) training and awareness OHSAS. Currently he works for Independent Certification Body.He had involved activities RSPO and ISPO certification assessment as an auditor. In this stage-1 he is assess for cultivation techniques .

4. Sandra Purba (Trainee Auditor) Bachelor of Forestry, Department of Forest Products Technology, Faculty of Agriculture, University of North Sumatra. Have experience working in oil palm plantations Company. She had attended such training: Training Expert of OHSAS General, Training ISPO Auditor and Auditor/Lead auditor Management System Certification (ISO 9001-2008). In this stage-1 activity she is assess on Occupational Health and Safety and Employment aspects.

ST 2 1. Octo H.P.N Nainggolan (Lead Auditor Witness). Indonesian citizen, Bachelor of Agriculture, majoring of Social Economics of Agriculture (Agribusiness). Seven years working experience since 2004 at oil palm Plantation Company in Indonesia and followed several trainings namely: Training of Conservation of Natural and Biological Resources in supporting HCV, Basic Plantation Management Program, Plantation Integrated Pest Management training, Management System Certification (ISO 9001-2008/SNI 19011-9001:2008), Environment Management System (ISO 14001:2004), SMK3 based on OHSAS, RSPO Lead Auditors Training Course endorsed by Proforest and Wildasia, Indonesian Sustainable Palm Oil (ISPO) Lead Auditor training course, supply chain certification system training and

http://www.mutucertification.com/

mailto:[email protected]


ASSESSMENT REPORT


RSPO Renewable Energy Directive Lead Auditor training. Currently he worked as an auditor at Certification Body.. In stage-2 he is as Lead Auditor Witnesser.

2. M. Syarip Lambaga (Lead Auditor). Bachelor of Agriculture from UNHAS, Master of Science Program Post Harvest Technology of IPB, trainings have been followed among others, Lead auditor training RSPO, In House Training for ISO 9000 and 14001 Lead Auditor Training SFM as Social Expert, ISO 22000 Lead Auditor Training, ISPO Lead Auditor Training, and Malcolm Baldrige Training. Having experience in the plantation of more than 5 years, and experience as a food safety auditor for more than 5 years, team members evaluator SNI BSN Awards, and as a team member for socialization RSPO smallholder and large estates conducted by DMSI 2006-2009. In Stage-2 he is assess the legality and environmental aspect(s).

3. Ardiansyah (Auditor). Indonesian citizen, Bachelor of Forest Resources Conservation, Department of Forestry, Bogor Agricultural University. He has involved activities such as preparation of EIA document and industrial wood plantations (HTI) and training such as awareness RSPO, Lead Auditor ISPO, awareness OHSAS, land cover crop mapping and Auditor/Lead auditor Management System Certification (ISO 9001-2008), He has several times following audit activities related to sustainable palm oil certification system as an auditor. In stage-2 he is asses for HCV, social, environmental and soil & water conservation aspect(s).

4. Rudi Ramdani (Auditor). Bachelor of Agriculture Majoring in Agronomy, Agriculture Faculty of Bogor Agricultural University. He has experienced more than two years as an operational staff in a private oil palm plantation company in Indonesia. He also followed training he namely: Indonesian Sustainable Palm Oil auditor, Awareness RSPO, Management System Certification (ISO 9001-2008) training and awareness OHSAS. Currently he works for Independent Certification Body.He had involved activities RSPO and ISPO certification assessment as an auditor. In this stage-2 he is assess for cultivation techniques .

5. Sandra Purba (Trainee Auditor) Bachelor of Forestry, Department of Forest Products Technology, Faculty of Agriculture, University of North Sumatra. Have experience working in oil palm plantations Company. She had attended such training: Training Expert of OHSAS General, Training ISPO Auditor and Auditor/Lead auditor Management System Certification (ISO 9001-2008). In stage-2 activity she is assess on OHS, Employment, Freedom of Union, Mechanisms for FFB pricing, Equality of Opportunity, Gender Equality and CSR.

2.3 Assessment Methodology, Assessment Process and Locations of Assessment

2.3.1 Figure of person days to implement assessment

ST 1 Number of auditors: 4 auditors Number of days for Stage-1 at site: 2 days Number of working days for Stage-1 at site: 8 working days

ST 2 Number of auditors: 5 auditors Number of days for Stage-1 at site: 3 days Number of working days for Stage-1 at site: 15 working days

2.3.2 Detail process of assessment

ST 1 The assessment was conducted by measuring the sufficiency of implementation with the consistency done by the PT Ivo Mas Tunggal – Ujung Tanjung Mill to the requirements of National Interpretation of the Republic of Indonesia from RSPO Principles and Criteria for Sustainable Palm Oil Production (RSPO INA-NIWG, May 2008 and Scheme Smallholders October 2009) and Supply Chain Requirement for CPO Mill. The assessment was conducted in three methods: (1) document review, aiming to observe the sufficiency of types or substances from required documents; (2) interview, aiming to obtain more detailed information and cross check the information; and (3) field observation, aiming to observe directly the sufficiency of implementation on site. Some opportunities for improvement of the results ST 1 delivered by the auditor MAL to the management unit and the results are the subject will be verified at the next assessment phase (ST 2).


ASSESSMENT REPORT


Improvement for nonconformity of the findings will be observed on ST 2. All information obtained is recorded and is part of the Mutuagung Lestari (MUTU) ST 1 report.

ST 2 Stage-2 (Main assessment) aimed for measuring the achievement reached by the company (PT GPI) in implementing the requirements of the National Interpretation of the Republic of Indonesia from the Principles and Criteria (P&C) of RSPO for the Sustainable Palm Oil Production (RSPO INA-NIWG, May 2008) and Supply Chain Requirement for CPO Mill. The assessment was conducted in three methods, i.e: (1) review of documents, to assess the adequacy of the type and

substance of the required documents, (2) interview with management unit’s personnel, to obtain cross check more

detailed information; and (3) field visit, to assess the adequacy of the actual implementation in the field compared with the

data of review result and information specified in the document.

A number of improvement recommendations as the resulted of the Stage-2 activities were submitted by auditors of MUTU to PT Ivo Mas Tunggal management unit, and the improvement results would be taken as verification for the Surveillance (S-1). All information obtained were recorded in the Checklist of PT Mutuagung Lestari and become the main attachment to the Assessment Report. In detail, the second stage assessment process is as follows:

June 4th , 2013. Team departed from Jakarta to Pekanbaru, then travelled a trip to the location PT. Ivomas Tunggal in Siak. Later in the day, the team conducted opening meeting in Ujung Tanjung Estate Training Center, which was attended by: Regional Controller & Production Controller Siak, Factory Manager of Libo, Ujung Tanjung and sam sam, estate Manager of Libo, Sei Rokan, Nenggala, Ujung Tanjung, Samsam, Kandista and Palapa, HR staff Region and Center, Legal staff and Mapping, Senior Assistant, Mill Assistant and estate Assistant and other related personnel. Furthermore, it continued review of legal documents and Basic information mill and estate.

June 5th , 2013. In the morning, team divided into 2 teams. : Team 1 (Mr. Syarif Lambaga, Mr Rudi and Mr Octo) conducted Focus Group Discussion with stakeholders PT. Ivomas Tunggal in the hall of Ujung Tanjung Training Center and Team 2 (Mr.Ardiansyah and Miss.Sandra Purba) conducted public consultation to government agencies in Siak. During the day, all members teams have continued review documents in the Hall of Ujung Tanjung Training Center. Later, in evening, based on the results of the documents review and public consultation, Team determined sample locations that would be visited and presented to the management of PT. Ivomas Tunggal.

June 12th , 2013. In the morning, the team conducted field visits in Ujung Tanjung POM. The afternoon, team conducted documents review of Ujung Tanjung POM and Ujung Tanjung Estate.

June 13th , 2013. In the morning, team continued documents review of Ujung Tanjung POM and Ujung Tanjung Estate. The afternoon, team conducted Closing Meeting in the Hall of Ujung Tanjung Training Center which was attended by: Regional Controller & Production Controller Siak, Factory Manager of Libo, Ujung Tanjung and Samsam, Estates Manager of Libo, Sei Rokan, Nenggala, Ujung Tanjung, Samsam, Kandista, Palapa, HR staff for Region and Center, Legal staff and Mapping, Senior Assistant, Mill Assistant, Estate Assistant and other related personnel.

June 14th 2013. Team departed from Pekan Baru to Jakarta.

2.3.3 Locations of Assessment

ST2 Sample location have determined by auditors team based on the location should represent each operational area (it used formula 0.8 √ y) that are Ujung Tanjung POM and the supply base Ujung Tanjung Estate.

Ujung Tanjung estate

Location. 1. Block D19 & D21 Division 4: Observation harvest activities and interviews with harvesters, loaders and


ASSESSMENT REPORT


harvest foreman about working safely, the use of personal protective equipment (helmet, goggles, boots), emergency first aid, wages, freedom of association , health care and gender commission.

Location. 2. Blocks A19 Division 2: Observation activities of empty fruit bunch application and interviews with workers related with working safety, the use of personal protective equipment for farmtraktor operator, emergency first-aid, wages, freedom of association and health care.

Location. 3. Blocks A19 Division 2: Observation management / utilization of owls as rat control and plant of biological control agents (Turnera subulata and Cassia cobanensis). The owl box is active condition and habitable for adult owls.

Location. 4. Blocks A18 Division 2: Observation spraying activities and interviews with workers and harvest foreman about working safely, use of personal protective equipment (boots, apron, gloves and goggles masks), inspection, service and health insurance, wages, emergency first aid, the freedom of association, health care and job health insurance..

Location. 6. Blocks E8 Division 4 : Interviews with workers and foremen of land application

Location. 7. Block BC 22 Division II: Management of HCV 4.1 (riparian). Based on field visit, is known that the company has set a border area as HCV, there is a marking on the palm oil trees prohibit of chemis treated (5 trees every left-right of main river). The Company also planted riparian planting such as vertiver grass, bamboo and Guatemala.

Location. 8. Block A19 Div II: Observation maintenance BPN boundaries pole (BM 03). Based on field visits is known that the boundaries pole in good condition and well maintained. The poles are borderline between PT Ivo Mas Tunggal with Jambai Makmur village.

Location. 9. Block A20 Div II: Observation maintenance auxiliary BPN boundaries pole (BMI 12): Based on field visits is known that the maintenance in good condition and well maintained. The poles are borderline between PT Ivo Mas Tunggal with Jambai Makmur village.

Location. 10. Emplacement of Employees Ujung Tanjung Estate: Based on field visits and interviews with several families of employees, is known that the facilities was provided by the company such as clean water, lighting, medicine, education, home care, transportation of unorganic waste every 2 times in a week.

Location. 11. Hazardous Waste Warehouse Ujung Tanjung Estate: Based on field visits is known that before enter to warehouse, personnel should wear PPE and PPE boxes has available in the warehouse area. For emergency response is available fire extinguisher, emergency first aid boxs. In addition, there are MSDS for every type of hazardous waste in the warehouse. Symbol used in accordance with applicable regulations.

Location. 12. Fuel Tank Ujung Tanjung Estate: Based on field observations and interviews with workers is known that prior to fuel filling, the vehicle must in its proper place that is the areas that have been cemented. In the area has been a trap charging to avoid contamination directly into the ground. In the area of the fuel tank has been marked in accordance with applicable regulations.

Location. 13. Hazardous Waste Warehouse Ujung Tanjung Estate: Based on field visits is known that there are emergency equipment such as fire extinguisher, trap if spill occurs and eye shower. hazardous waste has been prepared in accordance with the type and symbol of hazardous waste in accordance with applicable regulations.

Location. 14. Fire Fighting Equipment Ujung Tanjung Estate: Based on field observations and simulation equipment is known that the condition of equipments in good condition and well function.

Ujung Tanjung Mill

Location. 15. FFB Acceptance / Grading Ujung Tanjung Mill, Through the interviews, the personals were understood SOP of FFB acceptance . Based on observations is known that the company has completed a OHS warnings and conduct waste management according to SOP.


ASSESSMENT REPORT


Location. 16. Processing areas, Based on interviews with workers is known that workers were understood the SOP in accordance with their stations, based on observations is known that the company has completed OHS warnings.

Location 17. workshop Based on interviews with workers is known that workers were understood the SOP and based on observations is known that the company has completed OHS aspects emergency first aid box. The welder operators have received training and have a certificate of welder competence and managed waste in accordance to SOP.

Location. 18. Dispatch Ujung Tanjung Mill, Based on observation is known that the company has completed OHS warnings and managed waste in according to SOP.

Location. 19. Warehouse Ujung Tanjung Mill, Based on interviews is known that the officers were understood the SOP and got health examination. Based on observations is known that the company has completed OHS warnings and managed waste in according to SOP.

Location. 20. Waste Water Treatment Plant. Based on observation is known that the company has completed OHS warnings and managed waste in accordance to SOP and based interviews with officer is known that the officers has understood SOP.

2.4 Stakeholder Consultation and List of Stakeholders Contacted

2.4.1 Summary of stakeholder consultation process

Conduct a public announcement on the RSPO website (www.rspo.org) a minimum of 30 days prior to the Stage 2 audit and a meeting with several stakeholders in the district was conducted directly by visiting & consulting directly and Focus Grup Discussion on June 5, 2013.

2.4.2 List of stakeholder contacted

Please find appendix 3

2.5 Determining Next Visiting

The time of the next activity (Surveillance) will be determined after 12 months after the certificate is issued.


ASSESSMENT REPORT


3.0. Assesment Result 3.1. RIngkasan Penilaian Sertifikasi RSPO

MUTUAGUNG LESTARI has conducted an assessment of Ujung Tanjung Mill (PT Ivo Mas Tunggal) operation consisting of one (1) mill and one (1) oil palm estates.

During the assessment, there were two (2) Nonconformities were assigned against Major Compliance Indicator(s); four (4)

nonconformity(s) were assigned against Minor Compliance Indicators; and one (1) nonconformance(s) against supply chain

requirement for CPO mill and seven (7) opportunity(s) for improvement were identified.

Further explanation of the non-conformities raised and corrective actions taken by the company are provided in section 3.5.

The company has already prepared and implemented the corrective action(s) that had been reviewed and accepted by

Auditor(s) in form of documentation evidence(s) e.g. (document record/photographic/etc...). Those corrective action(s) taken

that consist of two (2) Major non-conformity(s); four (4) Minor non-conformity(s) and one (1) nonconformance(s) against

supply chain requirement for CPO mill had been closed out shall be verified during next assessment.

MUTUAGUNG LESTARI found that Ujung Tanjung Mill (PT Ivo Mas Tunggal) complied with the requirements of RSPO

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

Republic of Indonesia - RSPO INA-NIWG, May 2008 dan untuk Scheme Smallholders, October 2009.

Therefore MUTUAGUNG LESTARI Recommends RSPO Certification of compliance is Issued/Continued/suspended*).

Ref Std. VERIFICATION RESULT of MUTU-Certification

PRINCIPLE #1 COMMITMENT TO TRANSPARENCY

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

Based on the Communication Book of PT. Ivo Mas Tunggal, further called as company (External and Internal Communication/Office of Riau Area) that describe about incoming information and its response, at each management unit (POM and Estate). Based on the explanation from the Manager of Communication, information order should be submitted in writing. The officer who recording the information at the POM is office clerk of SMK3 and at the estate is the office clerk of bookkeeping. The document is stored in document room. The mechanism of information order is described as follows: Information order is received by Head of Administration Department and then delivered to Manager Unit. If needed, Manager Unit consults with related unit. The period of communication response is 1 month. There is also a mail box to deliver aspiration (according to the SOP of Communication and Consultation, number of document is SOP/SOP/SMART/LH-19).

Based on the verification of Communication Book of PT. Ivo Mas Tunggal, there was no information order from the stake holders. However, there was a request about fund donation from the community. All incoming mails had been responded in accordance with the procedures. For example, about fund donation for the construction of gate from the Head of Jabal Nur Islamic School has been responded through minutes of meeting of fund donation for the construction of gate given to the Campus of Taqwalloh Mental Development Institute (Jabal Nur Islamic School) on March 26th, 2013.

The record of information orders and responses is stored in accordance with the SOP of Document Management. The shelf life of document is ±5 years in accordance with the SOP (SOP/SPO/SMART/LH-02 dated July 1st, 2010) in the secretarial of


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each unit SPO.

The company has provided adequate information to other stakeholders, such as:

The delivery of waste management report (liquid waste and Hazardous and Toxic Waste) Quarter I of 2013 PT Ivo

Masa Tunggal (Estate and POM) to the Environmental Agency Siak Regency, received by public staff (Pertiwi) on

May 1st, 2013.

The delivery of Guiding Committee of Occupational Safety & Health Quarterly report to the Ministry of Manpower and Transmigration First Period January 2013-March 2013.

Status: Full Compliance

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

There is a list Information Document And Related Stakeholder (information can be accessed by the public) was approved by the Manager, namely:

1. Number of Employees 2. Employee Wage List 3. List of Employees, Personal Tax and Information for building tax calcualtion 4. EIA study, RKL / RPL and land application permit. 5. Quarterly reports guiding committee of occupational safety & health 6. Social Impact Assessment report 7. Document Social Work 8. Ownership License/Permits such as HGU certificate (land use title).


PRINCIPLE #2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

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

The company has shown several evidences about valid legal requirements compliance such as :

There is a Permit of Area Allocation according to the Decree of Riau Governor number Kpts.532/XII/1984 dated

December 7th, 1984 concerning Land Allocation covering 41,870 Ha in Bagan Sinembah Village, Kubu Sub District

and Simpang Libo Village, Mandau Sub District, Bengkalis Regency for the COMPANY.

There is a Permit of Location according to the Decree of Riau Governor number Kpts.543/X/1986 dated October 8th,

1986 concerning Permit of Location and Right Acquisition/Land Purchasing of approximately 45,870 Ha in Mandau

Sub District and Kubu Sub District, Bengkalis Regency for Palm Oil Estate managed by the COMPANY. It has been

following Regulation of Agrarian Minister, Head of National Land Agency Number 2 year 1993 according the

procedure to obtain location permit and land rights for the company in order to capital investment.

There is an approval of Palm Oil Estate business principle of 23.477 ha area from Agricultural Minister No

HK.350/E5.790/12.94 December 2nd, 1994. It has been following Regulation of Agricultural Minister Number 26 year

2007 concerning the procedure of plantation business permit.

There is an approval of principle: Letter from Agricultural Minister Number HK.350/E5.790/12.94 dated December

2nd, 1994 concerning approval of Palm Oil Estate business principle for 23.477 Ha areas in Mandau Sub District,


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Bengkalis Regency, Riau Province for 23,477 Ha area and POM capacity of 120 Ton FFB/Hour. It has been

following Regulation of Agricultural Minister Number 26 year 2007 concerning the procedure of plantation business

permit.

There is an Application Letter of Plantation Business Number 756/Menhutbun-VII/2000 dated June 29th, 2000 palm

oil cultivation area as many as 25,053 Ha area for 2 mills of product processing units and completed with capacity of

120 ton/hours. It has been following Regulation of Agricultural Minister Number 26 year 2007 concerning the

procedure of plantation business permit.

There is an evidence of worker’s Jamsostek/Labor Social Assurance payment in April 2013. It has been following

Law Number 13 year 2003 concerning matters pertaining to manpower.

There is a worker’s Collective Labor Agreement in 2013 with the number of Decree is 191/PHIJSK-

PKKAD/PKB/XII/2012 between BKS-PPS with the Executive Committee of Agriculture and Plantation Workers Union

of Indonesia Workers Union in Jakarta on December 17th, 2012, valid for two years..

There is a list of certificates and license Ujung Tanjung Mill consists of license of Operator (license of Thresher

Machine, Boiler, Wheel Loader, Engine Room, Workshop, and Staff). For example:

License of Boiler Operator on behalf of: Suriadi (NIK 98216) valid to November 26th, 2017.

License of Machine Room Operator on behalf of: Saut Bungaran Saragih (NIK 97166) valid to December 7th,

2017.

License of Wheel Loader on behalf of: Edy Yatno (NIK 99216) valid to October 28th, 2016.

There is a list of machine permits at the estate and Ujung Tanjung POM in the document of Machine and Equipment

Checking Schedule as well as Permit which contains information about: type of machine, number of permit, date of

permit, period of permit, periodic checking, last implementation, and rechecking. For example for machine:

Boiler Number 2; Number of permit is 03/A.0351 date of permit is January 25th, 1996; period of permit

checking is every 2 years, checking schedule is every two years, last checking is March 14th, 2012 by

Manpower Agency. There is checking evidence by Ir. H. Asmizal (Manpower Agency of Riau Province).

Compressor number of permit 13/BT/DTK/IX/2008, date of permit April 28th, 2008, period of permit checking is

every 5 years, checking schedule was conducted on March 14th, 2012, there is an evidence of last checking on

March 14th, 2012 by Ir. H. Asmizal with the conclusion that machines can be well used.

Generator Number 04/MD-MEK/DTK/IX/2006, period of permit checking is every 1 year and last checking on

March 13th, 2013 by Agustiawirma. ST from Manpower Agency Siak Regency with the conclusion that

machines can be well used.

There is a list of heavy equipments operator’s license for Ujung Tanjung Estate (UTNE which consist of 8 license of

Operator (tractor, generator, tractor, grader, vrane, and welding). It has following the Regulation of Manpower and

Transmigration Minister Number 05 year 1985 concerning lift transport aircraft. For example:

License of Farm Tractor on behalf of: Sumardi; Number SIO = 11.11788-OPK3-PAA/X/2011; valid to October

28th, 2016.

License of Farm Tractor Operator Number WTR4/23 on behalf of Sardi: Number SIO = 11.11770-OPK3-


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PAA/IX/2011; valid to October 28th, 2016.

License of Farm Tractor Number 126/PM/DISSOSNAKERTRANS/WAS/2013 hold by operator on behalf of

Sardi in the form of Endorsement Permit of Lift Transport Aircraft Usage, type of tractor is Messy Fergusson

Number of Series: CE31244U168175/JG in 2000. Last checking by Ir. H. Asmizal on March 27th, 2013.

License of Farm Tractor Number 57/PA/DISOSNAKER/8/2011 for lift and transport facility type of tractor, the

name of brand is Massey Fergusson Number Series U768032B manufactured in 1989, it is used to lift and

transport FFB, last checking was August 11th, 2011.

There is a permit of waste water use produced by palm oil industry from the Environmental Agency of Siak Regency

(Number 04/BLH-S/KPYS/2010 for 171 Ha area, on January 2010 and valid for 5 years

Tri Prasetyo (worker at Grading UTNE) has the newest Employment Agreement for Specific Time Periods (PKWT)

with the company from April 24th, 2013 to October 24th, 2013. The last Employment Agreement for Specific Time

Periods (PKWT) was signed on April 23rd, 2013 and starts to work as Freelance on July 23rd, 2012 - 23 October

2012, and then signed as worker Employment Agreement for Specific Time Periods for 6 months from October 23rd,

2012 - April 23rd, 2013 and then extended from April 24th, 2013 - October 24th, 2013. This is in accordance with the

Regulation of Manpower Minister Number 100 year 2004 concerning Employment Agreement for Specific Time

Periods.

Based on the interview result with worker at Ujung Tanjung Estate, Division III on behalf of Ponijem, it is known that Personal Protective Equipment such as boots is not provided by the company. This is not in accordance with the Regulation of Manpower Minister Number 8 Year 2010 section 2. Please see Noncompliance Mayor CAR No 2013.03

Verified on June 13th, 2013

The company has shown improvement evidence in the form of minutes of meeting of handover on June 3rd, 2013 concerning Provision of Personal Protective Equipment such as boots to the workers at Ujung Tanjung Estate as many as 40 boots, one of them was given to Ponijem.

Noncompliance Mayor CAR No 2013.03 is closed.

The company has document of Compliance Evaluation to the Regulation PT. Ivomas Tunggal Estate (on January 5th, 2013, by Division Head & Environment Sustainability). It regulates several regulations that must be met by the company. There is an evidence of evaluation to the newest regulation, such as: additional Government Regulation Number 50 year 2012 concerning The Implementation of Occupational Health & Safety Management System to the document of Compliance Evaluation to the Regulation on January 2013 for Ujung Tanjung Estate.

There is a list of regulation compliance in 2013, for example at UTNE :

Document of compliance evaluation to the regulation related with the permit that has been renewed on March

1st, 2913 and the number of regulation is 27 regulations.

Document of compliance evaluation to the regulation related with environment that has been renewed on

February 7th, 2013, consist of: 22 regulations.

Document of compliance evaluation to the regulation related with matters pertaining to manpower that has

been renewed on February 5th, 2013 as many as 38 regulations.

Document of compliance evaluation to the regulation related with Occupational Health & Safety as many as 41

regulations that have been renewed on February 5th, 2013.


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The mechanism of compliance evaluation to the regulation is written in the SOP of Regulation and other Requirements (SOP/SPO/SMART/LH-03 by Division Head and Sustainability on July 1st, 2010). In the Chapter 6, action steps have been discussed, such as: assistant/controller of document is help by staff of department related with the routine identification and verification every 6 months to related regulations, with sustainable palm oil production principle and criteria. There is also an evidence of evaluation to the newest regulation, such as Government Regulation Number 50 year 2012 concerning the Implementation of Occupational Health & Safety Management System in the document of Compliance Evaluation to the Regulation, completed with hardcopy of this regulation document. The company has an opportunity to further study wage calculation proportionally (working time) of freelance. It can be reviewed in accordance with the applicable regulations.


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

The company has ownership and use of land for plantation development and POM, based on these following permits:

In 1984, the company has a Permit of Area Allocation according to the Decree of Riau Governor Number Kpts.532/XII/1984 on December 7th, 1984 concerning Land Allocation for 41,870 Ha in Bagan Sinembah Village Kubu Sub District and Simpang Libo Village Mandau Sub District Bengkalis Regency. Areal in Simpang Libo Village is currently used as Samsam Estate (2,846.076 Ha), Kandista Estate (3,884.89 Ha) and Palapa Estate 3.074.89 Ha).

In 1986, the company has a Permit of Area according to the Decree of Riau Governor Number Kpts.543/X/1986 on October 8th, 1986 concerning Location Permit and Right Acquisition/Land Purchasing for 45,879 Ha area in Mandau Sub District and Kubu Sub District, Bengkalis Regency for Palm Oil Estate managed by the COMPANY. Samsam Estate, Kandisa Estate and Palapa Estate are situated at Location 1 in Mandau Sub District (Libo I/12.370 Ha and Libo II/14.000 Ha). This decree is completed with Map of Location Permit, scale 1:100.000.

Approval of the Directorate General of Plantation through Letter Number HK.350/E4.516/10.88 on October 11th, 1988 concerning Approval of Palm Oil Estate Company Development in Riau Province.

In 1990, the company conducted Forest Area Clearing according to the Decree of Forestry Minister Number 036/Kpts-II/90 on January 20th, 1990 concerning Clearing of Some Forest Area S. Tentara – Minda for ± 13,595 Ha, Forest Area S. Kandis – S. Penyalar for ± 14,500 Ha, Forest Area S. Basar – S. Rumbia for ± 9,398 Ha and Forest Area S. Dua – S. Bangko for 10,975 Ha in Bengkalis Regency, Riau Province for plantation area on behalf of company. Samsam Estate, Kandisa Estate, and Palapa Estate are situated in the Forest of Kandis River - Penyalar River.

In 1994, there was a separation of land management of PT. Ivomas Tunggal into PT. Salim Ivomas Pratama (Salim Group) and PT. Ivomas Tunggal (SMART Group) through the Letter of Plantation Agency, Riau Province Number IV/1045/SD.01/11/94 on November 12th, 1994 concerning Principle Permit Support to the Separation of Company Plantation Management, was initially has 53.370 Ha area with the following distribution:

a. Salim Group through PT Salim Ivomas Pratama taken and managed the plantation area in Kubu Sub District, Bengkalis Regency for 27,000 Ha.

b. SMART Group through PT Ivo Mas Tunggal in Mandau Sub District, Bengkalis Regency for 26,370 Ha areas.

Approval of Principle: Letter of Agricultural Minister Number HK.350/E5.790/12.94 on December 2nd, 1994 concerning the Approval of Palm Oil Estate Business Principle for 23,477 Ha areas in Mandau Sub District, Bengkalis Regency, Riau Province with net area is 23,477 Ha and capacity of POM is 120 Ton FFB/Hour.

Decree of Land Use Title : Certificate of Land Use Title Number 1 Year 1994 on August 18th, 1994 for 13,432.087 Ha area and valid to December 31st, 2028 and get extension and renewal of Land Use Title through the Decree of the Head of National Land Agency Number 150/HGU/BPN/2004 concerning Extension and Renewal of Land Use Title of land in Siak Regency, Riau Province, for 13,432.087 Ha area and extend for 25 years since December 31st,


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2028 and Renewal Term for 35 Years since the end of extension period of the Decree of the Head of National Land Agency Number 150/HGU/BPN/2004.

Certificate of Land Use Title Number 1 Year 1994 on August 18th, 1994 for 13,432.087 Ha area and valid to December 31st, 2028 and get extension and renewal of Land Use Title through the Decree of the Head of National Land Agency number 150/HGU/BPN/2004 concerning Extension and Renewal of Land Use Title of land in Siak Regency, Riau Province, for 13,432.087 Ha area and extend for 25 years since December 31st, 2028 and Renewal Term for 35 Years since the end of extension period of the Decree of the Head of National Land Agency Number 150/HGU/BPN/2004. Its Operational Area according to the Decree of Land Use Title Number 1 Year 1994 is Sam-Sam Estate, Palapa Estate, Kandista Estate, Ujung Tanjung Estate, Sam Sam POM and Ujung Tanjung POM.

Certificate of Land Use Title Number 02 on August 12th, 1997 for 11,621.2 Ha valid to August 12th, 2032 (35 Years), with the operational area is Libo Estate, Sungai Rokan Estate, Nenggala Estate and Libo POM.

Area that has been controlled and used by PT. Ivo Mas Tunggal has been well demarcated and delineated both in map and field. Based on the Map of Stakes Inventory and Management, the company identified 3 BM stakes and 6 IMT stakes at Ujung Tanjung Estate.

Based on the result of verification to boundary markers in the field, that has been randomly conducted, BM03 border at Block A 19 and IMT 12 at Block A20 are directly sharing the same borders with Jambei Makmur Village. The boundary marker is in the form of concrete poles 30 x 30 cm and height 60cm, red painted and clear identity marked.

In addition of National Land Agency’s stakes, the border of company’s working area has also been made in the form of trench. Its wide is ± 4 meter and depth of ± 3 meter along working area boundary.

Based on the Map of Special Situation (Map of GS) Number 67/1988 (signed by the Head of Sub Directorate of Terrestrial Measurement and Mapping on behalf of the Director General of Agriculture, Director of Land Registration, area of PT IMT is situated in Mandau Sub District Bengkalis Regency Riau Province for 9,183.8 Ha. This Map of GS was then revised in accordance with Land Use Title publishing Number 2 on August 12th, 1997 for 11,621.2 Ha. It is published by National Land Agency, Bengkalis Regency (project area of PT. CPI for 2,858 Ha has been added, consist of PT. CPI I, PT. CPI 2, and PT CPI 3).

In 2004, there was a claim by a group of people from Sakai Ethnic. However, This claim has been negotiated and settled by both parties that facilitated by local government. The company has submitted Care Program Funds to Sakai Ethnic Community.

Based on the FGD result on May 30th, 2013 attended by village heads, community figures, elder people from Sakai Ethnic, traditional leaders from Malay Ethnic, youth leaders, NGO, representative of government, member of parliament, there was no conflict on land between local citizens/community groups/residents and the company.

The company has solved land clearing problem by conducting two methods, such as:

1. Land and Crops Compensation.

Land and crops compensation was given to community who has cultivated land and/or yard in the permitted location. This land and crop compensation process was conducted by negotiation and agreement process between the company and land and/or crops owners. For example :

Set of beam compensation for several plots of land in the company’s working area. Land compensation is gradually conducted in 1980 – 1995. Land compensation is completed with approval letter of agreement and witnessed by village and sub district.

Statement of cultivated land hand over in Sam-sam/Belutu/Kandis Village for 26,370 ha area. Negotiation was conducted on November 3rd, 1986 on behalf of Sam-sam Village. There is name list of compensation beneficiaries.


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2. Sagu Hati Giving

Sagu hati is given to community around the plantation area who do not have any cultivated land and/or crops in the permitted location. This given is intended as company’s concern to the community in surrounding. For example : There was a document of sagu hati giving to several community groups around the plantation area November 1986.

All documents of compensation payment and capital assistantship have been recorded and well stored by the company and available in the Representative Office in Pekanbaru.

The record of land right has been documented in Legal and Land Acquisition Document, consist of:

1. Statement Letter from land owner.

2. Statement Letter of Land Right Acquisition which is known by village head, representative of sub district.

3. Receipt of land/plant compensation payment.

4. Minutes of Meeting of land/plant compensation payment known by representative of sub district, village head, traditional leaders, Islamic leaders, community figures, and smart people.

5. Map of compensated land.

There is a mechanism of dispute solving:

SOP of Land Conflict Solving, Number of document: SOP/SPO/SMART/LH-04. Its scoping area is all activities related with land conflict solving activities in the plantation area and its processing unit.

SOP of Claim and Unsatisfaction Solving, Number of document: SOP/NP/SMART/XII/MCA/2011, valid from August 1st, 2010.

The implementation of this SOP can be realized by providing Complaint Book at each estate. It can be used to record and monitor each complaint from many parties that potentially become source of conflict.


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

Based on the information from management of PT. Ivomas Tunggal, HCV identification, FGD results on May 30th , 2013 and information from the Government of Siak District, is known that in the estate area and / or operational area of PT. Ivomas Tunggal, there is no areas under the traditional rights and / or ninik mamak rights and / or communal land.

Status: Full Complience

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

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

There is a working plan for 3 years by PT. Ivo Mas Tunggal period of 2013 – 2015. In this working plan composing, FFB receiving projection from 7 Estate has been calculated, production cost in the estate and POM, capacity of POM, Trend of Palm Product (FFB, CPO, PKO), CPO price estimation, replanting plan, general cost and profitability. There is a trend of profit decreasing because of wider replanting area and FFB production decreasing. There are accounting departement, Audit Agronomy & Advisory (AAA) for Estate, MAA (Mill Audit & Advisory) for Mill, and Operational Internal Audit for Estate & Mill to control cost do not overrun from targeted projections.

There is plan of replanting program in 2013-2017 at several plantation units of PT. Ivomas Tunggal such as Libo Estate, Sungai Rokan Estate, Nenggala Estate, Ujung Tanjung Estate, Palapa Estate, and Kandista Estate as follow:


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Estate 2013 2014 2015 2016 2017 Total

LIBE 295,70 421.24 497.10 225.82 1,439.86

SRKE 584.37 548.41 810.57 1,943.35

NGLE 457,47 221.35 738.64 547.66 1,965.12

UTNE 466.16 793.26 1,259.42

PLPE 559.35 254.75 227.57 731.81 2,177.70

KNDE 561.17 561.17

Total 1,267.99 1,905.88 1,999.59 3,094.87 2,851.77 11,120.10

Each replanting program is always reviewed every year through budgeting meeting and management meeting.

All documents and replanting program have been available in all management units.


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

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

The company as several operational procedures, such as:

1. SOP – IK Palm Tree Cultivation Technique (MCAR, 2012) discuss about the activity from land clearing to harvesting activity, as follow :

• Chapter 1: SOP New Development Planning Area. • Chapter 2: SOP replanting Planning. • Chapter 3: SOP Nurseries. • Chapter 4: SOP Land Clearing. • Chapter 5: SOP Planting. • Chapter 6: SOP replanting. • Chapter 7: SOP Control of Pest and Plant Disease. • Chapter 8: SOP Weed Control. • Chapter 9: SOP Fertilization. • Chapter 10: SOP Maintenance Immature plants • Chapter 11: Pathways Toward the Harvest. • Chapter 12: SOP Maintenance Mature plants. • Chapter 13: SOP Harvest. • Chapter 14: SOP Loading and Transportation FFB. • Chapter 15: SOP Precipitation Measurement with Ombrometer.

2. Operational procedures at mill can be found in Management Committee Manufacturing Division (MCMD) Revision 4, Number of Reference: 01-02/MAA-MCMD/1 per February 14th, 2012). It describe about the SOP of palm oil processing from: FFB receiving station, boiling/sterilization stations, threshing station, pressing station, clarification station, nut and kernel station, boiler and machine room station, water treatment station, final effluent station, and tank storage station.


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3. Procedure for Dispatch CPO & PKO can be found in: SOP of CPO and Kernel Production Delivery (PT. IMT-UTJM/SOP/07) per July 1st, 2011. It describe about: purpose, scoping, duty and responsible, definition, description of receiving procedure (Delivery Order), CPO tank truck and kernel truck loading, CPO tank truck and kernel truck loading unloading, appendix, and controlling of document.

4. SOP’s related to safe working practice and application of pesticiedes, such as: Document/SOP of hazard identification & risk control (number DP-01-01, since July 14th 2012) for every activity in estate & mill.

5. SOP Riparian zone protection No. SOP/SPO/SMART/LH-06, July 1st 2010

Monitoring and checking to estate and mill operational has been routinely conducted once a year in the form of operational internal audit activity, audit agronomy & advisory of estate, mill audit & advisory of POM. There is a sample of monitoring and checking activity as follow:

Operational Internal Audit :

1. Report of Operational Internal Audit UTNE: on March 29th - April 5th, 2013 with 6 findings. It has been finished on May 2nd, 2013, such as related with damaged road in Division 2. It was then responded by adding financial budget for hardening and inserting.

2. Report of Operational Internal Audit UTJM: There was a document of recapitulation of Operational Internal Audit Meeting Number 10/V-UTJM/12 on 3, 5, 14, 25, 27 March 2012 and 25 Mei 2012, the finding was 10, about: unused goods offer to other units. All findings had been responded.

Agronomy Audit & Advisory and Mill Audit & Advisory :

1. There was a document of Main Report of Audit Ujung Tanjung POM based on the visit on 04 - 07 March 2013 (Semester 1), it describes several information such as: finding during visitation, comment from manager and PC related with the improvement, such as boiling liner job number 2 was completely finished on 16 March 2013 in accordance with the initial plan.

2. Agronomy Audit & Advisory: on 14-15 February 2013, there were 4 findings and all findings had been responded in March 2013.

There is a record of operational activity report at Samsam Estate and Palapa Estate in the form of monthly production report, fertilization report, spraying report. There is also a record of activity report at Ujung Tanjung POM in the form of Monthly Processing Report such as in March 2013, it describe: log sheet process and throughput, processing obstacle, need of shell, FFB intake, manager report, etc.


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

The company has routinely analyzing soil and leaves in accordance with the program. There is a sample of result of soil and leaves analysis, such as:

Soil analysis :

Ujung Tanjung Estate: There was a document on 8 December 2011 for the result of soil sample analysis (Reference

number is 287/TANAH/LAB-SMARTRI/XII/2011). The parameters measured include: texture, acidity (pH), content of

C, N, P, K, Mg, Ca, Na, BS, CEC, Al and H

Leaves analysis:

Ujung Tanjung Estate: There is a result of leaves analysis on 13 April 2012 (Number of references is 111/DAUN/LAB-


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SMARTRI/IV/2012) for 11 samples from Ujung Tanjung Estate (N, P, K, Mg, Ca, B, Fe, Cl).

These two analyses can be used as the consideration base in determining recommendation for fertilization.

There are several conducted actions to maintain soil fertility such as selective spraying, soft fern letting as cover crops, empty fruit bunches application and land application, and fertilization according to the recommendation of fertilization program from R&D Department. There are several samples about these activities at Ujung Tanjung Estate as follow:

Legume cover crops: at Ujung Tanjung Estate, replanting activity has not been conducted yet so there is no LCC

planting activity. However, there are several LCC planting at early stage in the form of PJ, CM and CC. At replanted

estate, Mucuna bracteata is used. Other actions to maintain the fertility of soil are: selective spraying, soft fern letting

as cover crops.

The use of empty fruit bunches in January 2013 = 3,564 ton; February 2013 = 2,758 ton; March 2013= 2,366 ton;

April 2013 = 2,128 ton application of empty fruit bunches of total production of empty fruit bunches at POM as much

as 12,634 ton. Based on field visit at Blok A19, Division 2 Ujung Tanjung Estate, note that there are the use of EFB

aplication for soil fertility.

There is a document of production volume and liquid waste application - April 2013 started from January - April 2013,

as many as 55,049 ton has been applied in April 2013 as many as 9,672 ton. Before being used, liquid waste was

previously managed at 8 ponds. Routine checking to liquid waste quality (every month) was also conducted to avoid

pollution in soil. The newest result of waste quality test (March 2013) was BOD: 2,005 mg/l (DoE requirement for

BOD: 5,000 mg/l) and pH: 7.6 (BM: 6-9).

The company has fertilization program in Semester 1 of 2013 and it is used for guidance in the fertilization realization

of running semester. The fertilization activity is also conducted by concerning rainfall in a week. It should reach 50 ml

(minimum) for 5 days in a row. There is a sample of MOP fertilization realization until April 2013, as many as 19.44

ton for 21.75 Ha areas.


4.3 Practices minimize and control erosion and degradation of soils.

The company had conducted Semi Detail Soil Survey in 2006 at each estate. The information describes about the map of topography, soil texture, depth, marginal land, rainfall data and land conformity class.

Management strategy for planting in area with certain slope is described in the document of Land Clearing SOP (SMA/MCAR/05/05-07). This procedure describe about land management strategy (land conservation). Based on the result of field survey to Ujung Tanjung Estate, the area of Ujung Tanjang Estate does not have certain/specific sloping area.

The company has road maintenance program in 2013 and it has been realized. Based on the field survey to Ujung Tanjung Estate, road was in good and well maintained condition.

Management strategies of marginal land and other critical lands are described in MCAR, such as:

Area with topography 15 – 40%, is managed by making conservation terrace, contour terrace, horse-shoe with silt - pit,

conservation plant planting such as vetiver grass and legume.

Blocked drainage area is managed by ditch or drainage channel making.

Sandy area (based on the land texture classification of more than 70% of sand and less than 20% of clay) is managed


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by empty fruit application.


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

Water management and water source maintenance according to the Implementation Report of Environmental Management Plan - Environmental Monitoring Plan (RKL - RPL) semester 2 of 2012 such as; Monitoring water fall every day. Waste water utilization in plantation area (Land Application) Housekeeping at the mill. Making waste water channel from mill to Waste Water treatment Pond so there is no waste waste contamination in

water body. Isolation in area around workshop, warehouse, and generator to avoid spill of fertilizer, pesticide, diesel, and used oil

that potentially able to directly contaminate the environment. Management of Hazardous and Toxic Waste. Reuse of waste water from used pesticide packaging containing Hazardous and Toxic Waste; re-dissolve in the next

pesticide mixing. Scrap metal pile on the water resistant floor and complete it with roof. Natural vegetation conservation in low area that always flooded by water as catchment area. Natural vegetation conservation in radius 50 m in the left and right of tributary as green belt. To make biologically water pollutant control pond such as water vegetation maintenance.

To conduct several efforts to prevent erosion and sedimentation such as: Technical cultivation conservation by applying cover crops such as empty fruit application, midrib on sloping land,

vetiver grass planting Vetiveria zizanoides, in cliff area and trenches area, bamboo/quatemala grass planting along the riparian area.

Technical civil conservation building such as terracing, horse-shoe/hooves, silt - pit, cerucuk, and dike with bags filled with soil.

Planting and enriching natural vegetation as wide as 50 m in the right and left tributary and river as greenbelt and help to clean sedimented river lane.

Water quality monitoring in; Ground water every six month. Waste treatment pond every month. Surface water of Angek Tapuak River as the nearest flow from Samsam POM (before and after POM location) every

six month. Surface water of Bekalar River (inlet and outlet) every six month. Water source (well) in the housing area of worker.

The company have done ground water monitoring test every six month. There are ground water monitoring test result dated November 16 2012 & March 26 2013 by SMARTRI Labolatory. The result was still in accordance with regulation of health minister number 416/1990. The implementation of water management program has been recorded, documented, and reported to the related parties in the government. For example, water quality monitoring of surface water and monitoring ground water has described in the document of Environmental Management Plan - Environmental Monitoring Plan (RKL - RPL) of PT. Ivomas Tunggal. It was conducted and reported every 6 months to the Local Environmental Agency of Siak Regency. Surface water monitoring referred to the water quality standard Class II as stipulated in the Government Regulation Number 82 Year 2001. For example, the result of surface water quality monitoring was conducted by SMARTRI Laboratory (accredited by KAN on 27 March 2013) at 3 sampling points before Ujung Tanjung POM, beside Ujung Tanjung POM and after Ujung Tanjung POM


ASSESSMENT REPORT


showed that it still met quality standard as stipulated in the Government Regulation Number 82 Year 2001 for water quality Class II. There is monitoring of outgoing water into main naturalways every 6 month. There are result of main natural waterways quality test which done by SMATRI Labolatory , dated November 16 2012 at Block E-06 (before Ujung Tanjung Mill), Block C-06 (inlet to Ujung Tanjung Mill), Block B-08 (after Ujung Tanjung Mill). The result is still suitable with Government Regulation Number 82/2001 for water quality standard class II. BOD monitoring of liquid waste at Ujung Tanjung POM has been tested every month at SMARTRI Laboratory Research Institute (SMARTRI) that has been accredited by KAN showed that BOD still met its quality standard < 5,000 mg/l as stipulated in the Regulation of Riau Governor Number 35 Year 2007 concerning quality standard of liquid waste and Decree of Environmental Minister Number 29 year 2003 Guideline of Requirement and Method of Waste Water Use Permit from Palm Oil Industry in soil of Palm Oil Estate. The result of BOD Period January – April 2013 was: January 2013 was 3,257 mg/L, February 2013 was 2,255 mg/L, March 2013 was 2,005 mg/L, and April 2013 was 402 mg/L. The company has recorded water use for processing need and non processing (housing, office, and laboratory), and calculate the ratio of water use per ton FFB, such as ratio of water use in 2011 was 1.04 m3/ton FFB and in 2012 was 1.02 m3/ton FFB. Even though there is water use efficiency, Ujung Tanjung POM has analyzed water use increasing at the cafeteria. Ujung Tanjung POM has recorded the use of water every day and it was well recorded.


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

The company has implemented an integrated pest and disease control. It was started with the detection, census, and evaluation as well as natural enemies of plant disease and pest. There are some samples of integrated pest control at Ujung Tanjung Estate (UTNE) such as:

Program of palm leaves eating caterpillar’s pest control: detection is conducted every odd month (1, 3, 5, 7, 9, and 11); census is conducted by following the result of detection. Until April 2013, there was no detection result that exceeded its quality standard and there was no chemical pest control. In case of pest attack that need chemical control, it will be conducted if this attack reach 30 ha area and the condition of natural enemies below 50% of its attack. Light trap for imago, pupa or chrysalis will also be conducted. There was a document of pest control detection program at Ujung Tanjung Estate (UTNE).

Rat pest control: there is a plan of rat census at Libo Estate 4 times a year such as January, April, July, October 2013.

Program of Tyto alba monitoring: every month in one year.

Planting and maintenance of beneficial plant such as: Turnera subulata and Antigonon leptosus is conducted every month in one year. Turnera at CR (Collection Road) was planted in 30 plots. The size of plot is 2x1 meter; Antigonon leptosus in 1 Block (30 ha) was planted in 6 plots. The size of plot is 2x1 meter at every corner of the block.

Plan and Realization of Ganoderma Census Program in 2013 at Division 2 Block B19 (32.90), Division 3 E14 (30.06 Ha), D17 (28.08 Ha), and Division 7 Block A29 (23.31 Ha) and plan at Block B31 (20.35 Ha) is two times a year (June and December 2013).

Realization of Disease Program such as :

Rat pest control: program 4 rotation in a year; for example at Division 2 Ujung Tanjung Estate (UTNE) with the result in 863.13 Ha; the number of tree is 112,279 trees; the number of censured tree 11,033; the number of attacked tree: 127 (1.15%).

Detection of UPDKS: budget 6 rotation in a year; for example at Division 2 UTNE in April 2013 with the result: wide area = 863.13 ha; the number of tree is 112,279 trees; attack: caterpillar attack such as MC (Mahasena corbeti) in 57 trees (light); Metisa plana (MP) in 221 trees (light).

Monitoring of Gupon/owl cage at Ujung Tanjung Estate (UTNE) in March 2013 at Division 2 active 38; non active 4; repairing: 15 owl cages. There were 84 sires and 5 eggs. Based on the field survey to Block A19 Division 2 Ujung Tanjung Estate (UTNE), cages were in active condition and inhabited by owls.


ASSESSMENT REPORT


Program of host plant maintenance is conducted every month in a year. For example: host plant maintenance activity at Division 2 in January 2013 for 863.13 Ha areas; realization was 863.13 Ha areas.

Report of spraying activity at Ujung Tanjung Estate (UTNE) - April 2013 for spraying activity at circle and harvesting path it was planned in 3,601.66 Ha area, the realization was 3,601.66 Ha area; the amount of material use: roll up (glyphosate) 947.49 liter (dose is 0.245 liter/ha); active ingredient is 0.007145 liter/ha: Paraquat (Rolixone) the amount of use is 138 liter; dose is 0.036 liter/ha and active ingredient is 0.007145 liter/ha: Metil metsulfuron (Erkafuron) the amount of use is 53.61 kg; dose is 0.014 liter/ha and active ingredient per ha is 0.002776 kg/ha. Spraying activity at circle and harvesting path is conducted by kep RB15 (for spraying activity by using contact herbicide) and CDA (Roll Up and Erkafuron for systemic herbicide), for example, there was a spraying activity by using systemic herbicide in January 2013 for 298.99 Ha area at Division III Ujung Tanjung Estate (UTNE) and contact herbicide in May for 180.53 Ha.

There is a list of attendance in Training of Integrated Pest Management on 5 September 2012 at Sungai Rokan Training Center, attended by 20 Assistant of Division from all Estates in the company and worker. The theme of this Integrated Pest Management Training was: Integrated Pest Management UPDKS (Nettle Caterpillars and Bagworms), Rat Concerning: the understanding of life cycle and its control, Tyto Alba breeding and release as well as its maintenance in the field. There is also a record of Training of Limited Pesticide Use in 2013 on 28 March 2013. It was attended by all members from the representative estates. There was a document of Toxicity Pesticide Data at Ujung Tanjung Estate (UTNE) in 2013 Ujung Tanjung Estate May 2013 (active ingredient/ton FFB or active ingredient/Ha) :

Product’s Name

Active Ingredients

% Aplication

number (Liter or Kg)

Total Active Ingredients

(Liter or Kg)

FFB Production

(kg)

Pesticide Unit

Erkafuron Metil Metsulfuron

0.6% 10.28 kg 6.17 6,289,190 0.000001

Rolixone 276 SL

Parakuat diclorida

0.42% 93.47 liter 39.26 6,289,190 0.0000062

Roll Up 480 SL

Isopropil amina glifosat

0.41% 116.26 liter 47.67 6,289,190 0.0000076


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 have list pesticide used as follow :

NO Name Active Ingredients Type

Pesticide License Date License Number

1. Erkafuron Methyil Metsulfuron Systemic 23 June 2016 RI.0103200620062405

2. Rollixone 276 Exel Paraquat diklorida Contact 23 June 2016 RI.01030120062467

3. Roll Up 480 SL Isopropil amina glyphosat

Systemic 30 April 2014 RI.2133/4-2009/T

4. Basta 150 SL Amonium Glufosinat Systemic 15 January 2014

RI.1113/12-2008/T


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5. Garlon 670 EC Triclopir Systemic 16 October 2016

RI.695/9-2006/T

The company has a document of Agrochemical Use Recapitulation and Division Working Program Recapitulation Document. It describes wide area of application, volume, working day, use material, dose per hectare, and rotation per chemist type activity per year. For example, spraying at the circle and harvesting path for wide leaves weeds and grasses control at Ujung Tanjung Estate for 455.22 Ha by using roll up with glyphosate as the active ingredient as much as 0.25 liter/Ha. Dose of roll up use is 0.25 liter/Ha. Rotation of spraying is two times a year. The company has conducted training on the proper use of pesticide (right way, right type, and right target), for example Training of Limited Pesticide Use by Pesticide Commission of Pekanbaru cooperated with PT ROLIMEX for spraying worker at Region Siak (PT IMT). It was attended by 146 participants. pesticide packaging waste is managed according to the SOP of Waste Management (SOP/SPO/SMART/LH-09). Based on procedure pesticide packaging waste was washed three times, then stored at ware house and then returned to manufacturer. Used waste water can be reused for the next pesticide mixing process . According the Letter from the Environmental Ministry Number B-3020/Dep.IV/LH/PDAL/02/2012 on 21 March 2012 as well as minutes of meeting with the representative of Environmental Minister (Amsor) on 13 April 2012, used pesticide packaging can be washed so it does not contain Hazardous and Toxic Waste. The company has a policy to decrease the use of paraquat harmoniously with the decreasing effort of its amount every year. This policy is signed by Vice President of Agronomy (VPA) of Sinar Mas Plantation (PSM) 5. There is a record of paraquat use since 2011 to 2013, it can be seen that the use of paraquat was 224.1 liter (17%) at Ujung Tanjung Estate from 2011 to 2012. Medical checkup program for spraying operator is regularly conducted two times a year. Checking was conducted by company’s doctor and laboratory test was conducted by Thamrin Clinical Laboratory in Pekanbaru. Last checking was conducted in December 2012 for spraying operator at Ujung Tanjung Estate (7 people). The medical checkup result showed that the condition of workers were good and able to work. Based on the interview result with spraying workers at Ujung Tanjung Estate, medical checkup had been conducted for physical checkup, blood test, urine test, and x-rays. Based on interview and field visit, note that the supervisi equipped with first aid kit based on Regulation of Labor Ministry No. 15 on 2008. The first aid kit for handling highly toxic pesticide is fuller earth and norit. There are sign board on the area that applied pesticides. Records of pesticides that used and work hour recorded at supervisor book. The company has a policy not to employ pregnant woman and breastfeeding mom in spraying section in accordance with the Letter of PSM 5 Number 001/SE-VPA-5/SPO/07/2011 on 8 July 2011. Based on the interview result with spraying operator at Ujung Tanjung Estate, there was no pregnant woman and breastfeeding mom in this area. The workers have understood about prohibition for pregnant woman and breastfeeding mom to work as spraying worker.


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

The company has shown a document of policy on Occupational Health & Safety program, as follow: 1. Policy of Occupational Health & Safety in PT. Ivo Mas Tunggal, valid from on 1 August 2012 (it describes about the

decree of each worker responsibility such as The Responsibility of Management and Responsibility of Worker). 2. Occupational Health & Safety Management System, published on 1 August 2012 and approved on 7 September

2012 by Guiding Committee of Occupational Safety & Health of PT. Ivo Mas Tunggal (Change of Guiding Committee of Occupational Safety & Health Structure), number of document is SPK-01.

In addition of policy on Occupational Health & Safety, the company also showed related SOPs Document with Occupational


ASSESSMENT REPORT


Health & Safety, for example: SOP of Determination, Maintenance, and Communication of Policy of Occupational Health & Safety, SOP of Hazard Source Identification, Assesment and Control, SOP of Occupational Health & Safety Program, etc (there are 26 SOPs related with Occupational Health & Safety). These policies have been displayed in the office of each unit either in estate or in the factory and socialized every day during the morning briefing. The company has shown the evidence of implementation of Occupational Health & Safety policy in the form of routine Report of Guiding Committee of Occupational Safety & Health to the Ministry of Manpower and Transmigration Siak Regency, minutes of meeting of Personal Protective Equipment hand over to workers in accordance with the type of work and an audit (checking) to the use of Personal Protective Equipment was conducted by HSE Officer (at Mill and Site) every week and reported every month. Based on the result of field survey and observation at Ujung Tanjung POM and Ujung Tanjung Estate, there were workers who did not wear their Personal Protective Equipment such as:

Observation result on 30 May 2013, there were two harvesting worker at Ujung Tanjung Estate, Division III, Block E07 who did not wear their Personal Protective Equipment.

Dispatch CPO Personal at Ujung Tanjung Mill did not wear helmet during his work.

Grading Personal on behalf of Rumain did not wear gloves during his work. Please see Noncompliance Mayor CAR No 2013.04

Verified on June 13th, 2013 The company has conducted several improvements related with the implementation of Occupational Health & Safety policy, such as:

The company has published and socialized a Letter number 02/RC-PC/Region Siak/June/2013 on 5 June 2013 concerning obligation to use Personal Protective Equipment at each operational activity.

To technically modify the helmet for dispatch personal by adding a strap.

To socialize IK Grading and firmness on the use of Personal Protective Equipment, Noncompliance Mayor CAR No 2013.04, is closed

The company appoint people who are responsible in Occupational Health & Safety, program. There are Guiding Committee of Occupational Safety & Health for two visited units and it has been approved by the Ministry of Manpower and Transmigration Siak Regency, Structure of Guiding Committee of Occupational Safety & Health for Ujung Tanjung Mill was Decree of Head of Social and Manpower Agency of Siak Regency Number 560/Dissosnaker/SK-P2K3/669 on 8 August 2012 and Structure of Guiding Committee of Occupational Safety & Health for Ujung Tanjung Estate is was Decree of Head of Social and Manpower Agency of Siak Regency Number 560/Dissosnaker/SK-P2K3/1075 December 2012. The appendix of decree describe about the management board such as trustees, chairman, vice chairman, secretary, evaluation department (5 people), monitoring department (6 people), research department (6 people), education department (5 people), and health department (5 people). In addition, the company also has licensed central clinic and company’s doctor who has Doctor Practice Permit (SIP) and has attended Occupational Health training. There was a document of Occupational Health certification on behalf of dr. Yossi Purba, Number: 9256/DH-I/99, on 11 September 1999 and Temporary Recertification Process on behalf of dr. Yossy Purba from the Executive Board of Indonesian Doctors Association number 1122/PB/A.3/05/2013, on 22 May 2013 to get the extension of Doctor Practice Permit. Minutes of meetings of monthly Occupational Health & Safety meetings descrubed the review of Occupational Health & Safety activity at Ujung Tanjung Mill in April (the completeness of KTD equipment, completeness of First Aid Emergency, completing of activity report of the Head of Guiding Committee of Occupational Safety & Health Department, ensuring all boiler safety equipments are in good condition). The company has a policy to provide Labor Social Assurance program including temporary worker as stipulated in the


ASSESSMENT REPORT


document of Collective Labor Agreement that has been registered in the Directorate General of Industrial Relations Number 191/PHIJSK-PKKAD/PKB/XII/2012 on 17 December 2012 valid from 14 Nov 2012 - 13 Nov 2014, in section XIV concerning Social Security and Social Assistance, the company showed the receipt of payment for Labor Social Assurance for example the receipt of payment for Labor Social Assurance for Ujung Tanjung POM worker on 1 May 2013, for payment of April 2013 to the office of Labor Social Assurance/Jamsostek in Duri Branch Office for 147 permanent workers. The company showed SOP of Medical Checkup number: SOP/SMK3/SMART/LH-23, valid from 1 July 2010, there is an early checking, routine, and special. Routine health checking is conducted one a year gradually. Physical checking is gradually conducted every month and checking to Cholinesterase, Spirometer and Audiometry in June and December. Medical checkup is conducted to physical test, blood test, urine test, audiometry, and x-rays. Routine medical checkup is conducted for workers, there are two types such as general check up (at plantation clinic by certified doctor from Occupational Health on behalf of dr. Yossy Purba) and special check up cooperated with the Laboratory of Thamrin Clinic in Pekanbaru. Medical check up conducted based on a risk analysis report has been compiled by the safety officer in each of unit and based on state laws concerning medical examination of labor. The history of medical testing (include audiometric test) at the clinic and report on Ocupational Health and Safety was stored in Mill office. Based on interviews with sprayer is known that there are no symptoms of toxic reactions such as skin disorders or rashes, breathing difficulties or nail problems. Based on interview and document check on engine room operator, is known that there were no hearing defect problem with the operator. The company showed the report of risk analysis result such as Identification of Hazard and Risk Assessment at Ujung Tanjung Mill and Ujung Tanjung Estate valid from January – December 2013 composed by the secretary of Guiding Committee of Occupational Safety & Health, and study of document. Based on this document of identification of hazard and risk assessment, several facts were identified such as type of activity (routine, non routine, and emergency), source of activity, impact, control and initial risk analysis (probability level, severity level, and risk level). The level of risk is divided into E: Extreme, H: High, M: Moderate and L: Low. It is analyzed according to its probability and severity. The company also showed the follow-up form of risk analysis, for example as Identification of Hazard and Risk Assessment of Ujung Tanjung Estate valid from January-December 2013. Based on the field survey at Waste Water Treatment Pond / Disposal Site at Ujung Tanjung Mill, the implementation of risk identification has not finished yet because it can be accessed by someone other than officer. Please see Noncompliance Minor CAR No 2013.05. Verified on June 13th, 2013 The company has conducted several improvement related with the implementation of risk identification at Waste Water Treatment Pond / Disposal such as barrier making in the entry area of Waste Water Pond / Disposal, site, addition of a prohibition sign warning for unauthorized party. There is minutes of meeting of the barrier installation in the entry gate on 3 June 2013, Noncompliance Minor CAR No 2013.05, is closed. The company showed training program for 2013 such as worker training program at Ujung Tanjung Estate in 2013: training for spraying worker was planned in March, Control of Hazardous and Toxic Waste was planned in April, simulation of land and housing fire was planned in June, training of First Aid Emergency and emergency response plan. These training were composed according to the matrix of training need for staff and worker in 2013. There was a document of training realization in the form of training report, such as: training report of First Aid Emergency conducted by dr. Yossi on 26 March 2013 at club house room of Samsam Estate. The material of training was First Aid Emergency and attended by 90 workers. The documentation is showed by pictures of training for the company in Siak. There is also a certificate of technical counseling of occupational health and safety of lift and transport section on behalf of Muhammad Yusuf (Operator of Tractor) from the Minister of Manpower and Transmigration of the Republic of Indonesia 28


ASSESSMENT REPORT


October 2011, number of registration is 6980-OPK3/PAA/X/2011, Certificate of competence from professional certification national agency on behalf of Panut number of registration is LOG 004 015442 2011, for the qualification/competence of mill on 13 Dec 2011 (valid for 3 Year). The company showed Procedure of Emergency Response, number of document is SOP/SMK3/SMART/LH-09, on 1 July 2010. There is also a document of organization structure of emergency response team, the structure of management consist of: trustees, chairman, secretary, head of fire team, group of fire poison, group of sand/mud, group of wet burlap, group of gaff hooks, security group, removal group, connecting group, and evacuation group. The company provides First Aid Emergency boxes at the field and high risk buildings. The company showed document of Map of First Aid Emergency Boxes Location, Minutes of meeting of boxes and medicines for First Aid Emergency and monthly monitoring report of First Aid Emergency boxes are available. The company can reevaluate the completion of equipment for First Aid Emergency in accordance with the guidebooks of First Aid Emergency. Based on the field survey at the Workshop of Ujung Tanjung POM, there were several equipment of First Aid Emergency that did not meet the list (for example, glass for eye washing was replaced with mineral water bottle and aquades was replaced with mineral water. Please see Noncompliance Minor CAR No 2013.06. Verified on June 13th, 2013 The company also showed the evidence of improvement on the completeness of equipments for First Aid Emergency at the working area: Handover of equipment box for First Aid Emergency such as aquades and bottle for eyes washing to the officer of First Aid Emergency was conducted at the Workshop of Ujung Tanjung POM on 4 June 2013, Noncompliance Minor CAR No 2013.06, is closed. The company conducted training of First Aid Emergency for workers; there is a report of First Aid Emergency training conducted by dr. Endang AW on 26 March 2013 at Club House, Samsam Estate. The company has also pointed officer who responsible to the box of First Aid Emergency in the buildings and fields. For example, there is a Decree of Officer for First Aid Emergency at Ujung Tanjung Estate on behalf of Hikmatul Fadillah number 01/UTNE/08/2011 on 11 August 2011, certificate of first aid training on behalf of Hikmatul Fadillah on 8 July 2013, Number 503/P3K/VII/11 from the Ministry of Manpower and Transmigration of the Republic of Indonesia. The company has a possibility to increase the understanding of trained workers related with first aid emergency. The company has documented and stored the accidents. The document of accident recording is reported in the form of monthly FR and SR recapitulation report in one year. The company has also investigated every accident. Every accident is periodically monitored in the meeting of Guiding Committee of Occupational Safety & Health, for example, there was an accident on behalf of Sopiyan P (Harvesting personal at Division 4) and it has been evaluated in the monthly meeting with the Guiding Committee of Occupational Safety & Health at Ujung Tanjung Estate on 25 January 2013, such as: to increase the understanding of workers to the SOP of harvesting and risk of job. The assistant must check the use of Personal Protective Equipment every day.


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

The company has a matrix of training identification for staff and worker such as: understanding of RSPO/ISPO, ISCC, GHG, environmental aspect, SAP, sexual harassment, SOP of plantation, High Conservation Value, BMDP, SMDP, MMDP, Integrated Pest Management, OUR SHARE VALUE, balance making, payroll, effective briefing, Leaf Sampling Unit (LSU)/Soil Sampling Unit (SSU). Training for worker of POM such as: Bearing workshop, operator of steamer, generator, turbines, welder, heavy equipment, SOP of loading ramp management, SOP of sterilizer station, SOP of hoist craft and tresher, SOP of Pressing, SOP of clarification station, engine room, SOP of boiler station, water treatment, welder, SOP and PCM of


ASSESSMENT REPORT


laboratory, SOP of grading station, SOP of dispatch oil and kernel, understanding of SOP ISPO.

Based on the matrix of training identification, training program in 2013 was then formulated such as Program at Ujung Tanjung POM that has been verified, there are several training programs in 2013, such as:

Positive working Action was planned in April and June

Public speaking was planned in January

Train the trainer was planned in February

For example, the realization of training in 2013 such as training of public speaking taht was conducted at Sei Rokan Training Centre on 16 January 2013. It was attended by 11 representatives of all company units in Siak. There were several training material and documentation.

The company committed to use trained contractor. The company has SOP of contractor controller with the number of SOP is SOP/SMK3/SMART/LH-26, that regulate the requirement of contractor in section 6, part a: contractor selection should concern Occupational Health & Safety Aspect, Permit, Use of Heavy Equipment, and Operator Permit. For example, choosing of PT Minasam Surya Mandala Putra as the contractor to collect Hazardous and Toxic Waste. It consider its company profile that has been incorporated and has permit of Hazardous and Toxic Waste collector according to the Decree of Environmental Minister number 294 year 2010


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

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

The company has Environmental Document that consist of:

a. Environmental Evaluation Study (SEL) that has been approved by the Commission of Environmental Impact

Assessment (EIA), Agricultural Department through Approval Letter Number RC.220/1052/B/VI/93 on 22 June 1993.

b. Environmental Management Plan (RKL) of Palm Oil Estate and Palm Oil Processing Company that have been

approved by the Commission of Environmental Impact Assessment (EIA), Agricultural Department through Letter

Number 129/RKL-RPL/BA/XII/94 on 08 December 1994.

c. Environmental Monitoring Plan (RPL) of Palm Oil Estate and Palm Oil Processing Company that have been


Number 129/RKL-RPL/BA/XII/94 on 08 December 1994.

The wide area of study location in the Environmental Evaluation Study was 46,000 Ha (included PT Salim Ivomas) and four POMs: 3 POMs have capacity of 30 Ton FFB/Hour that can be developed into 50 Ton FFB/Hour and 1 POM capacity of 30 Ton FFB/Hour.

There was also revised environmental document namely Environmental Management Plan - Environmental Monitoring Plan (RKL - RPL) based on the Recommendation of Revision in Environmental Management Plan - Environmental Monitoring Plan (RKL - RPL) and Environmental Impacts Management Agency (Bapedal) of Riau Province Number 660.1/Bapedal Prop.AM/232 on 3 May 2006 and its scoping area is 2 Land Use Title for 25,053.287 ha and 3 Palm Oil Mills, respectively has the capacity of 60 Ton FFB/Hour.


ASSESSMENT REPORT


The company routinely compose Implementation Report of Environmental Management Plan - Environmental Monitoring Plan (RKL - RPL) report it every semester for example; Implementation Report of Environmental Management Plan - Environmental Monitoring Plan (RKL - RPL) semester 2 Year 2012 reported to Environmental Agency of (Environmental Agency) Siak Regency and received by Environmental Agency (Ms. Tanti) on 10 April 2013. Related institution explain that there was no complaint about the environmental pollution caused by the company both liquid waste and solid waste. Liquid waste from the company is flowed as land application. Environmental Management Plan - Environmental Monitoring Plan (RKL - RPL) were also submitted to the Center of Sumatera Eco region Management, the Environmental Ministry of the Republic of Indonesia. It had been received by Ms. Yeni (the secretary of the Head of Cultivation and Preservation of the Environment of Sumatera Region) on 22 May 2013 and the Head of Deputy Assistant of Agroindustry Pollution Control, the Ministry of Environment, received by Mr. Wahyu (Staff of Deputy Assistant) on 4 April 2013. The result of FGD on 30 May 2013 attended by stakeholders showed that there was no complaint about the environmental pollution caused by PT. Ivomas Tunggal.

In the operational area of company, there is no change in wide area of estate and capacity of palm oil estate processing


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

The company had identified HCV in 2009 conducted by HCV Identification Team, Environmental Department of PT SMART Tbk by using the Guideline of High Conservation Value Area Identification in Indonesia published by the Consortium of HCV Revision toolkit Indonesia June 2008. There were 5 people who conduct HCV Identification activity. There were 3 people including head of team who have been approved by RSPO. The result of HCV identification was reviewed by Purwo Susanto (Approval of RSPO). Based on the result of HCV identification, there were several protected animal according to the Government Regulation Number 7 Year 1999, such as Termminck's Cat (Felis temmincki) and black eagle (Ictinaetus malayensis), area that provide environmental services (riparian) and area that functioned as the natural divider (Swamp Forest). Document of HCV identification and HCV Management Plan was made with involving of goverment stakeholder, academics & NGO.

There were several management actions conducted by the company, such as:

1. Socialization to the worker, staff, and community in surrounding.

a. Socialization to the worker, and staff on 8 June 2012 at the Main Office of Palapa Estate, attended by 13 participants.

The purposes were:

Recognition to the worker concerning the important meaning of protection to endangered species.

Reaffirmation concerning prohibition of hunting to wildlife endangered species.

The management of company suggested to the community and workers to participate in endangered wildlife

conservation efforts.

b. Socialization to the community through public consultation activity conducted at the Office of Garud Village, Kandis

Sub District, Siak Regency on 23 September 2009 and attended by 22 participants.

2. The making of prohibition signs for animal protection such as a warning sign installation about hunting prohibition, fish

poisoning prohibition, etc.

3. To install the marker for HCV border area, such as installation of prohibition sign on the use of chemical material in the

riparian area, to set stakes in 50 meter from the river mouth, etc.


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4. Monitoring animals in HCV area.

PT Ivo Mas Tunggal - Ujung Tanjung Estate has pointed HCV Officer on behalf of Rizki Kamain according to the Decree Number 002/UTNE/Int/11/2012 on 1 November 2012 for HCV management. Based on the interview with Mr. Rizki Kamain, he did not receive any notification to attend HCV management training. Please see Noncompliance Minor Car No 2013. 07.


The company has showed the evidence of training implementation to all HCV personal including Mr. Rizki Kamain. The training was conducted on 3 June 2013 at the Meeting Room of RC/PC Siak Region. The training material was HCV introduction material, HCV management procedures, and field survey. The trainer was Mr. Tonni Asmawan. Noncompliance Minor CAR Number 2013. 07 is closed. The record of material is available and well stored by the company.


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

The company has SOP Waste Management (SOP/SPO/SMART/LH-09, 1 July 2010) which describe about the identification of waste source and its management. Based on the procedure, the company has managed Hazardous and Toxic Waste in accordance with the permit, land application for liquid waste from POM, empty fruit bunch was applied to the plantation area, smoke and dust was periodically monitored, used metal was sold to the used metal collector, domestic waste was disposed at the Temporary Waste Disposal Site at each division and infectious waste was managed together with the Local Hospital– Bangkinang.

The company has implemented Waste Management in accordance with the procedure and records it such as solid waste in the form of shell and fiber as boiler fuel. In March 2013, as many as 579.69 Ton shell and 1,260.21 ton fiber were used.

The management of Hazardous and Toxic Waste is explained in the SOP of Hazardous and Toxic Waste Management (Number of document: SOP/SPO/SMART/LH-18) Revision 1 on 01 October 2011. Hazardous and Toxic Waste produced from the estate and mill was temporary stored at the licensed Temporary Waste Disposal Site of Hazardous and Toxic Waste. Please see Noncompliance Minor CAR Number 2013.01.


For the final collector of Hazardous and Toxic Waste, the company cooperated with PT BINASAMSURYA Mandalaputra that has been licensed by the government of Indonesia in accordance with the Decree of Environmental Minister Number B-8016/MENLH/10/2008. All produced Hazardous and Toxic Waste from the company have been recorded in the balance of Hazardous and Toxic Waste and routinely reported every three months to the government. Noncompliance Minor CAR Number 2013.01 is closed.

Based on the field survey to the Temporary Waste Disposal Site at Ujung Tanjung Estate and Temporary Waste Disposal Site at Ujung Tanjung POM, waste has been placed in area in accordance with the valid regulation.

Waste Management of used pesticide packaging was conducted by washing it in special area. The water from this washing was then reused for the next pesticide mixing process and washed packaging container can be stored at specific warehouse to be then delivered to supplier.

Minor 5.3.1 Status: Full Compliance

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

The company has conducted several efforts for the efficiency of energy use by converting renewable energy use such as the use of fiber and shell as the fuel to replace diesel in order to operate boiler.

Based on conversion of fiber and shell against diesel fuel that was made by Ujung Tanjung POM, there is data as follow :


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NO. Description Unit 2011 2012 2013

1. FFB Kg 328,800 270,088 60,183

2. Total Fiber&Shell Kg 60,006 49,291 10,980

3. Calori KKal 286,754,892 235.550,105 52,469,534

4. Power Kw 11,470,196 9,422,004 2,098,782

5. Efficiency Rp 11,316,059,756 10,446,190,620 2,513,541,678

6. Conversion Rp/Ton ffb 34,416,240 38,676,989 41,764,978

Source : Ujung Tanjung POM Data until April 2013.

Based on the above analysis, there was an increasing of energy efficiency every year. It can be seen from the higher saving conversion per ton FFB. In 2011, the company succeeded to save Rp. 34,416,240/ton FFB or Rp. 34,416/Kg FFB and continuously increasing in 2012 as much as Rp. 38,676,989/ton FFB or Rp. 38,677/Kg FFB. Until April 2013, the company has succeeded to save the use of fuel as much as Rp. 41,764,978/ton FFB or Rp. 41,765/Kg FFB.


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

The company does not use fire for land clearing. However, it is conducted in accordance with the SOP of Land Clearing (SMA/MCAR/05/05-07, revision 02) approved on 18 April 2007. Land clearing phase is conducted by making spatial planning, blocking path, road construction, land clearing, (imas/cutting small logs diameter < 15 cm, uprooted, mechanical stacking, stack of wood path, implementation of mechanical stacking, chopping block, etc.

The company also conducts a socialization to prohibit waste burning through warning sign in the housing area of workers. Based on the field survey and interview, workers and their families have known about the prohibition of waste burning.

The procedure of prevention and handling of fire is described in the SOP of Emergency Response (SOP/SMK3/SMART/LH-09, on 1 July 2010) and SOP of Land Fire Handling (SOP/NP/SMART/XI/L-H002 on 1 July 2010). Each management unit (estate and mill) has trained fire extinguisher team. There is a record of land and housing fire emergency response simulation on 6 September 2012 at Pondok 6 SSME. This simulation was conducted by the representative of fire extinguisher officers from all estates and mills in PT IMT.

Facilities and infrastructures for fire prevention/handling are available at each management unit (estate and mill). Owned facilities and infrastructures such as fire extinguisher, water tank, water machine, hose, and nozzle. The company has routinely checked facilities and infrastructures to prevent fire (one in a month). Based on the result of simulation to facilities and infrastructure for fire prevention/handling at Ujung Tanjung Estate, all equipments were well functioned.


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

To decrease pollution and emission, the company has identify the source of pollution and emission and their management actions as described in the SOP of Waste Management (SOP/SPO/SMART/LH-09, 1 July 2010) and SOP of mitigation to


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greenhouse gas emission (SOP/IMT/GRK, 5 April 2012).

As the evidence in the implementation to decrease pollution and emission, the company has conducted preventive maintenance periodicly for working equipment and monitored emission quality (every 6 months) such as Emission Test, Ambient Air Test, Noise, Light, and Vibration. Besides that, the company also completed the boiler with smoke density to reduce air pollution.

The test was conducted by Occupational Health and Safety Agency in Medan. Based on the last test result (November 2012), there was noise level exceeded its quality standard. It was controlled by asking (obligation) workers to wear Personal Protective Equipment (ear plug/ear muff) at the working area. Meanwhile, other parameter met their required quality standards. The last test result for decibel level wich exceeded its quality standard shown on the table of below:

RESULT OF DECIBEL TEST FOR UTJM NOVEMBER 2012

Location NAB (dBA) Result (dBA) Management

Genset 85 97

Wearing Personal Protective Equipment (ear plug/ear muff) at the working area and preventive maintenance for equipment

Boiller 85 88.5


Pressing 85 86.2


The example of monitoring emission for boiler and genset:

Result of monitoring genset emission at Ujung Tanjung Mill on Nov 6th 2012

Parameter Regulation of the Minister of

the Environment No.13 of 1995 Unit

Ujung Tajung Mill

Genset 1 Boiler 1

Opasitas 35 % 11.62 26.87

Total Partikel 350 mg/Nm3 122.31 258.82

SO2 800 mg/Nm3 508.56 438.02

NO2 1000 mg/Nm3 678.28 507.67

The company has conducted several efforts to decrease pollution and emission such as routine checking and maintenance of working equipment, to use solid waste (shells and fibers) as the fuel of boiler and to use liquid waste in land. Before being used, liquid waste was previously managed at 8 ponds (6 active ponds) by using multi feeding system. In addition, routine checking to waste water quality (every month) was also conducted to avoid pollution in soil. The record of waste water quality test result and record of waste use have been well stored. The newest result of waste quality test (March 2013) was BOD: 2,005 mg/l (DoE requirement of BOD: 5,000 mg/l) and pH: 7.6 (DoE requirement of pH: 6-9).

Based on the result of field visit at Ujung Tanjung Estate, Division IV, Block D21 there was an operational vehicle such as tractor grabber WTR4-23, its oil was leak in its hose connection. It cause oil spill to the soil and it potentially contaminate the water. Please see Noncompliance Minor CAR Number 2013.08.



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The company has conduct several efforts to avoid any pollution caused by the operational of activities, such as:

To evaluate oil leakage and to make repairmen plan

To replace hose tractor ford WTR4-23.

To socialize IK Tractor Ford to the operator of farm tractor on 5 June 2013, attended by 19 operators. This procedure

describe about the regulation that must be conducted by operator before doing his job such as checking of working

equipment condition and if it is damaged/broken, it should be reported.

It will be used as observation material for auditor team in the next visit. Noncompliance Minor CAR Number 2013.08 is closed.

Minor 5.6.1 Status: Closed with observation

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

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

The company has identify social impacts as described in:

a. Environmental Evaluation Study (SEL) that has been approved by the Commission of Environmental Impact

Assessment (EIA), Agricultural Department through Approval Letter Number RC.220/1052/B/VI/93 on 22 June 1993,

Environmental Management Plan (RKL) of Palm Oil Estate and Palm Oil Processing Company that have been


Number 129/RKL-RPL/BA/XII/94 on 08 December 1994, Environmental Monitoring Plan (RPL) of Palm Oil Estate

and Palm Oil Processing Company that have been approved by the Commission of Environmental Impact

Assessment (EIA), Agricultural Department through Letter Number 129/RKL-RPL/BA/XII/94 on 08 December 1994

and revision of Environmental Management Plan - Environmental Monitoring Plan (RKL - RPL) according to the

Recommendation of Environmental Management Plan - Environmental Monitoring Plan (RKL - RPL) Revision from

Environmental Impacts Management Agency (Bapedal) of Riau Province Number 660.1/Bapedal Prop.AM/232 on 3

May 2006 and its coverage area is 2 Land Use Title for 25,053.287 ha and 3 Palm Oil Processing Mill, respectively

has the capacity of 60 Ton FFB/Hour.

b. Report of Social Impact Identification Study of Palm Oil Estate Company by internal staffs (Untung Sukaedi and Tomi

Hendartomo) in August 2012 by using participative method by involving stakeholders such as community figures,

youth leaders, and village heads in order to decrease negative impact and to increase position impact in the

community. The result of this social impact study describe about derived impacts, action plan proposal, and target to

be achieved. There are several negative impacts such as lack of local worker recruitment and less optimal

community economic development. Meanwhile, positive impact is active participation in education quality increasing

in Kandis Sub District and regulation of Sakai Ethnic community

The company routinely compose Implementation Report of Environmental Management Plan - Environmental Monitoring Plan (RKL - RPL) report it every semester for example; Implementation Report of Environmental Management Plan - Environmental Monitoring Plan (RKL - RPL) semester 2 Year 2012 reported to Environmental Agency of (Environmental Agency) Siak Regency and received by Environmental Agency (Ms. Tanti) on 10 April 2013. Related institution explain that there was no complaint about the environmental pollution caused by the company both liquid waste and solid waste. Liquid


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waste from the company is flowed as land application. Environmental Management Plan - Environmental Monitoring Plan (RKL - RPL) were also submitted to the Center of Sumatera Eco region Management, the Environmental Ministry of the Republic of Indonesia. It had been received by Ms. Yeni (the secretary of the Head of Cultivation and Preservation of the Environment of Sumatera Region) on 22 May 2013 and the Head of Deputy Assistant of Agroindustry Pollution Control, the Ministry of Environment, received by Mr. Wahyu (Staff of Deputy Assistant) on 4 April 2013. The result of FGD on 30 May 2013 attended by stakeholders showed that there was no complaint about the environmental pollution caused by PT. Ivomas Tunggal.

There is a periodic record of social impact management and monitoring in the document of Implementation Report of Company Social Impact Management, Siak Regency Period December 2011 to December 2012 published by the Department of Corporate Social Responsibility. Negative impact management was conducted by recruiting local worker to work at PT. Ivo Mas Tunggal and scholarship for excellent student and recruited as an assistant at PT. Ivo Mas Tunggal. In order to increase community economic, the company has trained blacksmith and coaching of tailor.

In the operational of company, there was no big change of area or capacity of palm oil mill. The company-Ujung Tanjung POM does not have scheme smallholders.


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

There is a SOP of Response to Information Order (SOP/SOP/SMART/LH-01, approved on 1 July 2010), its scoping area is

activity related with information order to the stakeholder at Palm Oil Estate and its management. The purpose is to provide

right and transparant information to the stakeholder in accordance with the regulation, rules, and decree related with the

principle and criteria of sustainable palm oil.

There is also SOP of Communication and Consultation (SOP/SPO/SMART/LH-19) on 1 July 2010 by Division of Head

Environment & Sustainability. It regulates about the determination of activity, type of activity, description of activity,

implementation of activity, and related document. All written communications are recorded in the document of Communication

and Consultation Book.

The evidence of implementation of this SOP is communication book at the plantation area and Ujung Tanjung POM. For

example, at Ujung Tanjung POM in 2013, there are 6 fund proposals and all of them have been responded soon. There is no

information order from the community.

There was a document of List of Personal Contact and Institutions of PT. Ivomas Tunggal that consist of Government

Institution (16 institution) and community figures (12 people), and 1 NGO Sakai Kandis Lestari Survivor Group in Kandis.

The company has recorded the communication with internal and external parties in communication book. Based on the study to the Communication Book of PT. Ivo Mas Tunggal, there are several records of communication and response by the company, as follow:

UTJM: there is a communication book for UTJM, for example, funds proposal from Sakai youth leaders on 19 April

2013 for communication with the community as much as Rp. 800,000, received by the Head of Administration at

UTJM (Amin H). This order was responded by giving funds as much as Rp.800.000. There is an evidence of

approval from the PC (Herry Prasetyo) to provide funds for Sakai youth leaders as much as Rp.900.000 at Ujung

Tanjung POM on 19 May 2013.

UTNE: for example on 26 March 2013, there was funds proposal for the construction of entry gate as much as Rp.


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300.000. There is an evidence of minutes of meeting for funds donation as much as Rp.300.000 on 26 March 2013

from EM. UTNE.

Based on the information from the Manager of Estate (Mr. Edi), personal who responsible to conduct consultation and communication with the community at each estate is Manager of Estate. The manager able to delegate this task to his staff below him. This is in accordance with the job description of company’s manager.


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

The company has a procedure of workers’ complaint delivery with the name of: SOP of Complaint and Unsatisfaction Management (number of document: SOP/NP/SMART/XII/MCAR001 on 1 July 2010) concerning internal and external complaint management. For internal complaint, solving of complain and unsatisfaction from the worker must be delivered to the supervisor of working unit – Workers Union (PUK-SP) by making a letter to the head of unit. For external complaint, phase is described below: unit receives written or oral complaint and then verified at the field by related head unit and staff of department. If the complaint is true, related unit report it and ask for suggestion and consideration from the sub division of head before response it. Response is addressed within a month to the external party, if it is not satisfied, deliberation process will be conducted with third party. Special complaint related with female worker has been facilitated by establishing female worker association. In addition, the company has also provided 4 mail boxes (1 in the head quarter, 1 in the office of district division, and 1 at each housing area) The company also has provided complain book to record the complaint and its response. Based on this book until April 2013, there was no complaint from external party of complaint between the management and SPSI related with worker’s complaint.

There is a mechanism of dispute problem solving:

SOP of Land Conflict Solving, number of document is SOP/SPO/SMART/LH-04. its coverage area is all activities related

with land conflict solving activity around the plantation area and its management unit.

SOP of Conflict and Unsatisfaction Handling, number of document is SOP/NP/SMART/XII/MCA/2011, valid from 1

August 2010.

Based on the consultation result with stakeholders on 30 May 2013, there was no land conflict between the company and community in surrounding.


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

The company has mechanism for dispute problem solving, such as:

SOP of Land Conflict Solving, number of document is SOP/SPO/SMART/LH-04. its coverage area is all activities related

with land conflict solving activity around the plantation area and its management unit.

SOP of Conflict and Unsatisfaction Handling, number of document is SOP/NP/SMART/XII/MCA/2011, valid from 1

August 2010.

There is a record of land right acquisition that has been documented in the Document of Legal and Land Acquisition, consist of:


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Statement Letter of Land Owner.

Statement Letter of Land Right Acquisition known by village head and representative of sub district.

Receipt of land/crop compensation payment.

Minutes of meeting of land/crop compensation payment known by representative of sub district, village head,

traditional leaders, Islamic leaders, community figures, and smart people.

Map of compensated land.

The company also has record of project site compensation payment of Kandista Estate in 1992 to the community in Belutu Village as many as ± 200 family heads represented by the village head. The amount of compensation was Rp. 26,000,000 on 11 March 1992 completed with;

Minutes of meeting project site compensation payment of Kandista Estate which received by the Village Head of

Belutu Village (Mr. Abdul Mansur) and witnessed by the Secretary of Belutu Village (M. Yunus), traditional leader of

Belutu Village (Linggin), Islamic leaders in Belutu Village (Hamzah Kesud), community figure of Belutu Village (H.

Anang), professional/smart people of Belutu Village (Khoba Khoiri), Head of Minas Sub District (Drs. Wan Achmad

Syaiful), Head of Governance Affairs (Amrul Amp)

Map of Kandista Estate Project Site that will be paid has scale 1 : 40.known by the village head of Belutu Village and

management of company.

Receipt of compensation payment as much as Rp. 26,000,000 received by the village head of Belutu Village (Mr.

Abdul Mansur) on 11 March 1992.

The implementation of this SOP is realized by providing Complaint Book at each estate. It is intended to record and monitor complaints from many parties that potentially become source of conflict. Based on the consultation result with stakeholder of PT. Ivomas Tunggal on 30 May 201, there was no land conflict between the company and community in surrounding.


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.

The company has showed following documents that used as the base for the determination of worker’s wage:

Document of Regulation of Riau Governor No 67 Year 2012 concerning Minimum Waste in 12 Regencies of Riau

Province in 2013, there is an appendix that stated minimum wage for Siak Regency is Rp 1,600,000,-

Document of Decree of monthly SKU worker’s wage determination by the company in 2013 which based on the

worker’s group, the lowest wage is Rp. 1,566,350,-

Document of Decree of monthly SKU H worker’s wage determination number 066/CEO5/HR PSM 5/04/13 as much as

Rp 1,511,500,-

Document of Decree of monthly BHL worker’s wage determination number 065/CEO5/HR PSM 5/04/13 as much as Rp

65,040,-

The company also showed list of worker’s wage payment, for example list of worker’s wage payment in April 2013 at Ujung Tanjung Estate “Detail List of SKU Wage” Period in April 2013. Based on the study of data, there was no wage payment below its determined standard by the government.


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The company also showed Collective Labor Agreement in 2012 that there was no application; number of Decree is 191/PHIJSK-PKKAD/PKB/XII/2012, published by the Directorate General of Industrial Relation Guiding and Worker Social Security on 17 December 2012, valid within 14 Nov 2012 - 13 Nov 2014.

The company showed List of facilities/infrastructure for worker’s prosperity such as housing/residential area, central polyclinic, mosque, church, schools (elementary school, junior high school, preschool, kindergarten, and Islamic elementary school), sport hall, school bus, ambulance, worker hall, day care, and clean water facilities.

The company require contractor to comply valid manpower regulations as stipulated in the Collective Labor Agreement between the contractor and company such as Collective Labor Agreement Number 001/UTJM/LKL/01/2012 – dismantling ex oil tank written in the section 6 (working facilities) Sub section 9: concerning occupational safety and compliance of Personal Protective Equipment, Section 4 sub section 7 concerning provision of Labor Social Assurance for contractor’s worker.

The company always evaluation their contractors periodically to ensure that the contractor is follow to the rule by government that the salary for the workers must comply with the regional minimum wage. Based on letter of agreement between the company and contractors. The requirement are the contractors must experiences and comply with occupational safe and healthy and all of requirement on Labor Law in Indonesia (Act Number 13 year 2003), included the Jamsostek.


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

The company showed a document of policy to be free to join organization/union through Letter of CEO 5 Number 045/CEO5-SE/11/2010 concerning alliance deliberacy in workers/labors organization on 16 November 2010.

There is a document of Collective Labour Agreement () between Cooperation Agency of Sumatera Plantation Company (BKS-PPS) with the Central Management of Agricultural and Plantation Worker Union – Indonesian Workers Union (PP FSPPP-SPSI) in 2010 – 2012. It was published in Jakarta by the Directorate General of Working Requirement, Working Prosperity, and Discrimination Analysis on 4 August 2010. In Section II, Organization Confession

sub section 1 concerning Employer Confession and Workers Union at point a,b,c,d,e, ;

sub section 2 concerning General Sags for the Management of FSP. PP-SPSI at point a,b,c ;

sub section 3 concerning Special Sags for PUK SP-SPSI point a and b ; and

sub section 4 concerning Implementation of contribution quotation of the member of FSP.PP.SPSI .

Routine meeting of Workers Union was documented. The company showed a sample of meeting invitation of “Continuation of UMSP Meeting 2013” number 163/PC/F-SPPP SPSI/Siak/03/2013 to PUK F.SPPP SPSI Se PT Ivo Mas Tunggal Siak region, on 4 March 2013 and 6 March 2013.


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

The company showed a policy not to employ under age workers according to the Letter on 31 March 2009; concerning border of minimum age with the number of letter is 002/SE-HRDV/03/09 from the HR Director. This letter is subjected to SMD Operations, DMD Agronomy etc that states: related with the implementation of Law Number 13 year 2003 concerning Matters pertaining to manpower section 68 about prohibition to employ kids, it is stated that during worker recruitment process, the minimum age is 18 years old.


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In addition, in Chapter II. Working Relation section 5 sub section 2 also state that worker candidate must be 18 years old for the minimum.

The company also showed the list of workers in 2013. Based on the data study, the company did not recruit workers below 18 years old. The youngest worker is Luki Irwansyah who was born on 22 August 1994 and based on interviews with workers note that there are no underage workers


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

The company showed the Policy/SOP concerning similar opportunity and treatment in worker recruitment (Policy of Non Discrimination in SARA/Ethnic – Religion –- Racial - Intergroup) as written in the Chapter II, Working Relation section 5: Procurement and placement of worker sub section 1 that state each worker candidate should be given with similar opportunity to get job with no differentiation/discrimination.

There is also a Letter from CEO 5 concerning the Implementation of Industrial Relation at the Unit, the number is 003/CEO5-SE/06/2009, on 24 June 2009, to all unit heads, in order to realize harmonious, dynamic, and fear industrial relationship, each operational working unit should not differentiate ethnic, religion, racial, and sex in all working units.

The company showed a List of workers at Ujung Tanjung Mill that there were 190 workers while the number of workers at Ujung Tanjung Estate in April 2013 was 462 workers. Based on the data study of worker, the company has recruited workers without differentiate ethnic, religion, or home area and based on interviews with workers note that there are no discrimination in the recruitment of workers.


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

The company showed policies and SOPs concerning prevention to sexual harassment and criminality as follow:

1. SOP Gender Committee Number of Document is SOP/SPO/SMART/LH-15 valid from 1 July 2010

2. Document of Letter from CEO 5 number 001/CEO5-SE/02/2009 concerning socialization of sexual harassment valid

from on 20 February 2009 that all workers and staffs are forbidden in sexual harassment and this prohibition must be

socialized.

The company showed document of company’s policy concerning reproduction rights protection as follow:

1. SOP Gender Committee, Number of Document is SOP/SPO/SMART/LH-15 valid from 1 July 2010

2. Memorandum VPA PSM 5 Number 001/SE/VPA5/12/08 concerning prohibition for pregnant woman and breastfeeding

mom to work as spraying personal.

3. Document of Letter of CEO 5 number 002/CEO5-SE/03/2009 concerning granting for period permit valid from on 2

March 2009

There is a record of the implementation of company’s policy concerning sexual harassment prevention and reproduction rights protection such as the formation of gender committee structure and socialization of sexual harassment prohibition and reproduction rights protection. The company also showed recapitulation report of H1 leave (paid leave due to period/menstruation) and H2 (paid leave due to maternity).

The company showed Letter from CEO 5 number 001/CEO5-SE/02/2009 on 20 February 2009 that regulates prevention and


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handling of sexual harassment.

There is flow chart of sexual harassment problem handling, as follow:

1. The victim report the complaint to the management board of female (SPSI) orally or in writing.

2. The management boards of female (SPSI) report it to the head of unit.

3. Head of unit check the report and accompanied by the board of PIRSI.

4. The board of unit decides whether sanction can be punished or not.

5. If the victim does not accept the decision or sanction given by the head of unit, victim can solve it through legal way and

the company is not involved. There is a list of attendance of socialization participant on this sexual harassment on 27

August 2009. The number of participant was 45.


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

The company showed the Decree of the Determination of FFB Price from the government of Riau Province, Team of Palm Fresh Fruit Bunches (FFB) Price Determination, Riau Province, Number 22/TPh FFB-V/2013, Period 29 May-04 June 2013, the lowest price of 3 years old plant was Rp 1,059.71,- and the highest of 10 years old plant and above was Rp. 1,481.44,-. Ujung Tanjung Mill can evaluate the mechanism of FFB price announcement to the third party in transparent way.

The price of FFB is determined by the Team of Palm Fresh Fruit Bunches (FFB) Price Determination, Riau Province and based on the meeting result with all stakeholders (determination of price is conducted once a week) at the meeting room of Plantation Agency of Riau Province.

The company paid in accordance with the time that has been agreed. There was a document of Collective Labor Agreement with the contractor signed by two parties (representative of company and contractor), for example Collective Labor Agreement. 046/UTNE/IMTL/03/2012-BGN for Box Culvert, there was signs from two parties as the statement of collective agreement. There is also a sample of minutes of meeting for checking of job number Collective Labor Agreement.046/UTNE/IMTL/03/2012-BGN for Box Culvert. There is also a sample of Statement Letter of FFB supplier at Ujung Tanjung POM, holder of Delivery Order (DO) SMGX, to the Manager of UTJM, stated their availability to supply FFB to UTJM, on 1 June 2012, the payment receipt is available.


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

The company showed Company’s CSR strategic plan in 2013-2017 for all units. The proposal of CSR program in 2013 contains:

- Scholarship for poor excellent student,

- assessment glasses,

- Program of 5 km is free cataracts,

- Hernia and cleft lip,

- Demonstration plots,

- Assisstance livestock 100 cow,


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- free Interest loans for small traders,

- Built 8 meter bridge,

- Interest-free loan to small traders,

- Making of 8 meter bridge,

- Provision of automatic light bulb for the roads.

- Making of brojong road.

- Making of vehicles parking area.

- Making of drilling well, mosque development, and waqf land acquisition.

The company showed a report about the realization of CSR plan that has been made, such as:

- Social work for the provision of glasses in Siak Timur. Total was 536 people for all units of Siak on 17 January 2013

from Budha tzu Chi Indonesia Foundation (representative of Sinar Mas). There is a list of participant in this social

work for the provision of glasses and documentation of implementation activity (pictures).


PRINCIPLE #7 Responsible development of new plantings

7.1 A comprehensive and participatory independent social and environmental assessment is undertaken prior to establishing new plantings or operations, or expanding existing ones, and the results incorporated into planning, management and operations.

Company has analyzed environmental impacts (See Criterion 5.1.1) and identification of social impacts (see Criterion 6.1.1). There is no expansion estates and improvement mill capacity


7.2 Soil surveys and topographic information are used for site planning in the establishment of new plantings, and the results are incorporated into plans and operations.

The last planting was in 1993, there were no new developments planting in the company area until an audit is conducted


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

The company has identified HCV, made HCV management plan and implement HCV programs (See criterion 5.2).

The last planting was in 1993, there were no new developments planting in the company area until an audit is conducted.


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



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



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

Compensation has been given since the land clearing in 1984 (See Criterion 2.2)


7.7 Use of fire in the preparation of new plantings is avoided other than in specific situations, as identified in the ASEAN guidelines or other regional best practice.



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

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

PT Ivo Mas Tunggal as part of SMART, Tbk group has a SMARTRI research institute that work on the research and

development of sustainable production technique. This SMARTRI consist of Plant Breeding Department; Agronomy

Department; Crop Protection Department; Sustainability Department; and Field Operation & Training Department. Several

research results by SMARTRI have been socialized and applied in the field, such as:

1. The application of S4 spraying technique (Selective Spraying Site Specific): Special for spraying in circle and harvesting

path, it is sprayed by using budget 25% of total area. S4 spraying technique can be used if the weeds in circle are above

20%. The implementation of this S4 spraying technique can be proved by the decreasing of herbicide, for example at

Division 5, Kandistasari Estate: the use of herbicide Roll Up for budget rotation 1, in 2012, total application was 504.39 ha

as many as 126.098 liter into 120.4 liter. There was a saving on the use of Roll Up herbicide as many as 5.697 liters.

2. The research on mother palm seedling at Palapa Estate Block F6-F8 and G8.

The company has also evaluated replanting activity in the annual budgeting of company. Monitoring plan and operational improvement at the estate and mill is realized in the form of annual routine checking activity, at least once a year such as internal audit operational activity, audit agronomy & advisory and mill audit & agronomy.

The company as part of Sinar Mas plantation has improvement program in technical through innovation competition for

assistant every 2 years and innovation competition for manager every 4 years. Below is the sample of inovation:

1. Wheelbarrows bearing change with bearing from bike ace.


ASSESSMENT REPORT


2. The change of owl nest frame made of wood to owl nest frame made of iron..

3. The increasing of efficiency and effectivity of herbicide spraying by using tricycle motor as the vehicle for spraying activity.

4. The making of SECO for sickle safety from Samsam Estate to replace the use of sickle safety Kingoya brand.

5. The use of Scissor Lift in FFB loading activity, a mechanical arm set in the trailer with capasity of 2 tons.

The company has internal audit team RSPO and there is a report of RSPO Internal Audit Report on 25 February - 2 March 2013 conducted by internal team of RSPO SMART (5 Auditors) for all units (Ujung Tanjung, and Ujung Tanjung Mill), and the number of finding is 3. These findings have been followed up by the estate and POM as stated in the. Document of Corrective Action and Management Review of RSPO Internal Audit Report PT. Ivomas Tunggal on 13 April 2013. For example:

Finding at UTJM concerning: a record of information order and response that have not been updated; follow up: has

been completed with note in accordance with the current month; conducted every end of month through update

record book.

Finding of indicator 1.2 & 6.2 at UTJM concerning: unavailability of socialization evidence of SOP Communication

and Consultation; improvement action: socialization of SOP Communication and Consultation; target date 9 March

2012. Verification of improvement action in the form of invitation letter on 7 January about socialization of SOP

Communication and Consultation to the community in Libo Jaya Village, conducted on 8 January 2013

The company plan to make canopy at the gas station to avoid environmental pollution. Until the implementation of this audit,

poles of roof have been set and floor has been cemented.



ASSESSMENT REPORT


3.2 Summary of Assessment Report of Supply Chain

Clause (Module D) CPO Mills - Segregation Requirements

1 Documented Procedures

1.1

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

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

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

There are procedures and instructions for application RSPO supply chain requirements, such as:

a. SOP Identification and traceability. Number : PT IMT/SOP/01

b. Duties and responsibilities of personnel on application of supply chain requirements, namely:

Weigh krani (weight Bridge Officer).

- Ensure the scales and Weight bridge program was working properly before weight

- Checking completeness all vehicle documents that will be weighed, including ensuring input vehicle

number equal with number of vehicles weighed

- Ensure the vehicle has been in correct position, the vehicle has been turned off, and all the passengers

including the driver had got out of the vehicle

- Separating and recording FFB / CPO claim certified documents product from FFB / CPO non-certified

product. documents

Assistant

- To supervise FFB received in accordance with standards and criteria.

- To supervise the processing of FFB

- To supervise analysis process of quality products.

Head of Administration

- Recording and reporting the quantity and quality of products routinely

- Supervising administration FFB received and delivery products

- Supervising the essential equipments in Supply Chain in good condition, accurate, licensed and

maintained

- Performing Mass Balance calculation based on the amount of product that can be claimed as a Certified


ASSESSMENT REPORT


Product

Manager

- Responsible for all Supply Chain process can well accomplished

- Ensure the Mass Balance calculations have been done correctly in order to know the number of

Certified Product.

- Provide information to the relevant parties related with the number of Certified Product.

Production Controller

- Ensure and guarantee the product can be traced to the sources, delivery product is acceptable

according to quantity and quality.


1.2

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

The Company's procedures for receiving and processing certified and non-certified FFBs, namely:

a. SOP Identification and traceability. Number : PT IMT/SOP/01

b. Duties and responsibilities of personnel on the application of supply chain requirements, for example :

Weigh krani (weight Bridge Officer).

- Ensure the scales and Weight bridge program was working properly before weight

- Checking completeness all vehicle documents that will be weighed, including ensuring input vehicle

number equal with number of vehicles weighed

- Ensure the vehicle has been in correct position, the vehicle has been turned off, and all the passengers

including the driver had got out of the vehicle

- Separating and recording FFB / CPO claim certified documents product from FFB / CPO non-certified

product. documents


2 Purchasing and goods in

2.1

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

Company verify the volumes of certified and non-certified FFBs received in according to procedures traceability and Evaluation every monthly and quarterly.


ASSESSMENT REPORT



2.2

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

Company have Mass Balance calculations and procedure if there is a projected overproduction, as follow :

1. Informing to RSPO Certification, CB and RSPO IT System.

2. Re-analyze production data and Mass Balance reports that have been made

3. Calibration and re-checking the weigh bridge and its supporting tools

4. Determine a new certified product projection and considering maximum error rate 5% of the total projection set.


3 Record keeping

3.1

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

The company maintain accurate, complete, up-to-date and accessible records and reports covering all aspects of these

requirements, such as:

1. FFB delivery Ticket from core estates, smallholders estates and Supplier (individual farmers)

2. Weigh tickets from core estates, smallholders estates and Supplier (individual farmers)

3. weigh Tickets of Product (CPO and Kernel)

4. Product delivery Ticket (CPO and Kernel)

5. Daily Production Reports

6. SOP Acceptance

7. SOP Grading

8. SOP Processing

9. SOP Process Control Manual

10. SOP Dispatch

All relevant documents are controlled by the controller unit document

If documents need appropriate changes (revisions), the controller will coordinate with representatives of

management and are approved by top management



ASSESSMENT REPORT


3.2

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

Recording documents related to identification and traceability should keep at least in 5 years for RSPO in the factory office in accordance with procedures control documents and records.

3.3 a. The facility shall record and balance all receipts of RSPO certified FFB and deliveries of RSPO certified CPO, PKO and palm

kernel meal on a three-monthly basis. b. All volumes of palm oil and palm kernel oil shipped are reduced from the material accounting system in accordance with the

conversion ratio specified by the RSPO c. Facility can only send sales of Mass Balance from a positive stock. Facilities can sell lower

a. The Company has recorded and balance all receipts of RSPO certified FFB and non certified on monthly and three-

monthly basis that presented in the document of Mass balance calculation and was supported by computerized

Weight bridge Program.

b. All volumes of certified products have been calculated computerized by Weight bridge program.

c. Mass Balance sales from a positive stock was monitored by Weight bridge program.


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

The Company does not sale certified product, but only delivery of products to Bulking (Storage after in Mill). Certified product acceptance documents are recorded in the Delivery Order that describe DO number, date of issue DO, product number, destination and transportation .


3.5 In cases where a mill to outsource activities to an independent palm kernel crusher, the crusher are still falls under the responsibility of the mill and does not have to be certified separately. The mill should ensure the crusher is covered through a signed and enforceable agreement.

Kernel product was produced by Ivomas Tunggal, sent to Kernel Crushing Plant in Libo (LIOK).


4 Penjualan dan pengeluaran material

4.1


ASSESSMENT REPORT


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

(a) The name and address of the buyer

(b) The date on which the invoice was issued

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

(d) The quantity of the product delivered

(a) Reference to related transport documentation

The Company does not sale certified product, but only the delivery of products to Bulking (Storage after in POM).

Certified product acceptance documents are recorded in the Goods Receipt Weigh Ticket that informed:

a. Name of the recipient (Dumai Bulking Station)

b. Date of weighing

c. Delivered product name (CPO) and supply chain model that used (Mass Balance)

d. The number of products shipped

e. Documentation Delivery of Goods by with delivery letter


5 Trainning

5.1

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

There are training records related with Supply Chain Certification Systems conducted on March 2nd , 2013 by team ENVD -JKTO and attended by 32 participants.

However, based on document observation, is known that the training conducted for staff estate and not attended by factories staff in Ivomas Single (Samsam, Libo and Ujung Tanjung), so there in nonconformity (Noncompliance CAR No 2013.02).

Verified on Mei 8, 2013.

Ivomas tunggal (Samsam POM, Libo POM and Ujung Tanjung POM) has conducted training of Supply Chain Certification Systems on May 8th , 2013 by Team ENVD-JKTO and attended by 42 staff that responsible with the implementation of RSPO Supply Chain (Mill Manager , Assistant, Head of Administration , krani weigh and other staff).

Training records is available and well keep by the company.

Understanding related to implementation of RSPO Supply Chain will verify in the next assessment. Based on the above statement CAR No 2013.02 is Closed.



ASSESSMENT REPORT


6 Claims

6.1

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

Ivomas Tunggal’s procedure have stated make claims regarding the use of or support of RSPO certified oil palm products that are in compliance with the RSPO Rules for Communications and Claims

.



ASSESSMENT REPORT


3.3. Summary of RSPO Partial Certification.

There are 5 management unit are included in Ivomas tunggal, Management units belonging to the Ivomas Tunggal are: 1. PT. Ivomas Tunggal 2. PT. Buana Wiralestari Mas 3. PT. Meganusa Intisawit 4. PT. Bumipalma Lestaripersada 5. PT. Sawitkarya Manunggal

Total company that used for sample are (0.5 √Y) where Y is the number of companies incorporated into the same holding. Location sample for assessment are: PT. BUMIPALMA LESTARI PERSADA. Verification Date: 14 May 2013

2.1

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

X or√

Companies comply with the law and regulations related to the environment and prevailing land tenure. No complaints from stakeholders to the company. Based on the results of verification on unit is an example of the assessment,there were no non-compliance with regulations. The company has evaluated the implementation of legal compliance every year. It is available the results ofan evaluation of regulatory compliance:

1. Occupational Health and Safety (173 rule, 9 Not Applicable and 100 % comply ) 2. Plantation licenses (51 rule, 9 Not Aplicable and 100 % comply) 3. Environment (59 rule, 2`1 Not Aplicable and 100 % comply) 4. Labor (100 rule, 2 Not Applicable and 100 % comply).

√


2.2

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

X or√

There is availabble documents of : - Location Permit and Permitof Exemption Rights / Purchase of Land in the Sub district

of Peteh, Emok and Keritang,Indragiri Hilir District for Palm Oil, Coconut Hybrid and cacao on Behalf PT Bumipalma Lestaripersada. were issued by the Regional Investment Agency-Pekanbaru through Riau Governor's Decree Number: KPTS.40/IL-X/1990, dated October 22, 1990. There are also Appendix Location Map, Area ± 8,200 Ha Scale 1: 100,000.

- Decree of the Minister of Forestry Number: 136/Kpts-II/92, dated November 10,1995 about Release of Some Forests area in Forests Group, Reteh-S, excavation, Indragiri Hilir District, Riau Province, Covering an area of 11,562.5 Hectares for palm oil Cultivation on Behalf of PT Bumipalma Lestaripersada.

- Land use title No. 01 covering area 6.690 Ha, certificate of regestry dated 30 March 1995 No 02/1995 and map (scale 1 : 25,000), based on decree of Agraria Ministry/ Head of National Land Agency. Number: 73/HGU/BPN/95/ dated 10 November 1995 were issued by Head of National Land Agency dated 20 April 1996. Location in Mumpa, Pusaran, Baganjaya, Sungai Rukam, Pengalihan, Pebenaan, Sungai Gergaji. Land use title is valid until 31 December 2030.

- Building permits of factory covering 3,645.5 m based on decree of Indragiri Hilir Regent Number : B-0/HK/1995, dated 30 November 1995.

√


ASSESSMENT REPORT



6.3

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

X or√

Company have SOP grievance and complain (SOP/NP/SMART/XII/MCAR001), Revised July 1, 2010, and have been socialized on 9 February 2013 and March06, 2013

√

Status: Full compliance

6.4

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

X or√

Company have SOP/NP/SMART/VII/D&L002 about Land Compensation, revised July 1, 2010 Some land restitution process has been done and recorded. The process of land acquisition was conducted thorugh mapping, land owners identifying, negotiations between land owner and involving community representatives for land compensation.

√


7.3

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

X or√

There are no new planted in primary forest area since November 2005 or every areal which required for maintain or improve the one or more HCV).

√


7.5

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

X or√

There are no new planted in primary forest area since November 2005 or every areal which required for maintain or improve the one or more HCV).

√


7.6

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

X or√

There is no development of new planting area at PT. BPLP Based on verification of documents statement area, Plantatatio map and information from managemen that until now has not been identified or there are no problems with the stakeholders area currently managed by PT Bumipalma Lestaripersada

√



ASSESSMENT REPORT


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

3.4.1 Summary of Non Conformance, Correction Action Required and Observation at Pre Assessment (Stage 1)

CAR No

Ref Std Finding Area Grade Time

Limits Corrective Action Observation Status

Closing Date

2013.01 Minor 5.3.1

Reporting / Logbook of hazardous waste Estate. There is not enough evidence record / logbook of hazardous waste Estate has reported periodically (every 3 months) to the relevant agencies in accordance with obligations in the decree permits of hazardous waste temporary warehouse and PP 1999 No 18 clause 11 Paragraph 2.

Estate Potential NC

Before Stage

2

The company must show evidence of record / log book hazardous waste Estate has reported periodically to the relevant agencies.

The company has reported regularly of logbook hazardous waste to relevant agencies such as the delivery of a report to Environment agency Siak District and it received on May 1st , 2013.

Closed 13 June 2013

2013.02 SC.MB.5.1 Training Supply Chain. Not all staff associated with implementation supply chain certification system, have been trained such as krani weigh, assistant, head of administration.

POM Potential NC

Before Stage

2

The company must show evidence of training related to implementation of supply chain certification system requirements.

8 Mei 2013. PT Ivomas Tunggal (Samsam POM, Libo POM and Ujung Tanjung POM) has conducted awareness training of Supply Chain Certification system on May 8th , 2013 by Team ENVD-JKTO and attended by 42 staff associated with the implementation of the RSPO Supply Chain number (Mill Manager , Assistant, Head of Administration krani weigh and

Closed 8 Mei 2013


ASSESSMENT REPORT


other staff). Training records is available and well keep by the company. Understanding related to implementation of RSPO Supply Chain will verify in the next assessment

3.4.2 Summary of Non Conformance, Correction Action Required and Observation at Main Assessment (Stage 2)

CAR No

Ref Std

Finding Area Grade Time

Limits Corrective Action Observation Status

Closing Date

2013.03 Major 2.1.1

Regulatory Compliance Based on interviews with workers of Ujung Tanjung Estate, Division III, is known that personal protective equipment such as Boat shoes are not provided by the company. This is not comply with Permenaker. No 8 year 2010 Article 2.

Estate Major Before Certificate

Issued

Companies must personal protective equipment for free to workers.

13 June 2013 There is available evidence handover on June 3rd, 2013 the provision of PPE such as boots to workers of Ujung Tanjung Estate. Given for 40 people and one of is on behalf of Ponijem.

Closed 13 June 2013

2013.04 Major 4.7.1

Implementation OHS Policy

Based on field visits and

observations in Ujung Tanjung

Tanjung Mill and Estate, There

is workers do not use PPE

such as:

Observations on May 30th,

POM and

Estate

Major Before Certificate

Issued

Companies must perform in accordance with policy implementation K3 which has been owned.

13 June 2013 The company has

improvemed related to

implementation OHS policy,

such as:

The Company

publishes and socialize

Closed 13 June 2013


ASSESSMENT REPORT


2013, 2 harvesters who

are harvesting in Ujung

Tanjung Estate, Division

III, Block E07 did not use

PPE (Helmet, Safety

shoes).

Personnel dispatch CPO

Ujung Tanjung Mill did not

use a helmet when doing

the job

Grading worker on behalf

of Rumain did not use

gloves when doing the

job.

letter No 02/RC-

PC/Region

Siak/Juni/2013 dated

June 5th , 2013 about

mandatory use of PPE

in all operational

activities.

Perform engineering

techniques in helmets

of dispatch officers with

add straps.

Socializing IK Grading

and affirmation PPE

usage.

2013.05 Minor 4.7.3

Implementation of Risk Identification Based on the results of field visits in Ujung Tanjung Mill WWTP ponds known that the implementation of risk identification is not appropriate, because it can still be accessed by someone other than the officer.

POM Minor S-1 Companies should ensure implementation of risk identification has been carried out in accordance with the recommendation of risk identification.

13 June 2013 The company has made improvements in the identification of risks related to the implementation of the WWTP as a barrier making entered dijalur WWTP area, the addition of a prohibition sign warnings for unauthorized entry. There are minutes of installing the barrier of entry dated June 3, 2013.

Closed 13 June 2013

2013.06 Minor 4.7.6

First Aid Emergency Box Based on field visits in Workshop, Ujung Tanjung POM P3K found first aid emergency box did not appropriate with a list of owned (glass eye wash

POM Minor S-1 Companies must ensure all equipment in first aid emergency box appropriate with the list.

13 June 2013 The company has shown evidence of improvement completeness first aid emergency box at the site such as:

Closed 13 June 2013


ASSESSMENT REPORT


and distilled water replaced with mineral water )

Handover of equipment first aid emergency box such as eye wash cups and distilled water to officers in Workshop Ujung Tanjung POM dated June 4th , 2013.

2013.07 Minor 5.2.2

HCV officers Based on interviews with HCV officers in Ujung Tanjung Estate on behalf Mr. Rizki Karnain, is known that the officers have not been trained HCV.

Estate Minor S-1 Officers must ensure that the designated HCV officer have been trained .

13 June 2013 The Company has conducted training for HCV officers in Siak region conducted on June 3rd , 2013 in the RC / PC Office Siak Region.

Closed 13 June 2013

2013.08 Minor 5.6.1

Pollution Reduction Efforts Based on field visits in Ujung Tanjung Estate Division IV Block D21 is known that there is a farm tractor No. WTR4/23 have oil leakagein the hose that cause oil droplets to the ground.

Estate Minor S-1 The company must demonstrate an effort to avoid pollution due to operational activities.

13 June 2013 The company has made

efforts to avoid pollution due

to operational activities

through the following

activities:

Replacement hose

tractor ford WTR4-23.

Socialization IK Tractor

Ford to farma tractor

operator on June 5th ,

2013 which followed 19

operators.

Evaluate the leakagethat

occurred and make

preventive plans

It will observe in the next visit.

Closed 13 June 2013


ASSESSMENT REPORT


3.4.3 Opportunity for Improvement

No Ref.Std Descriptions

1 Major 2.1.1 Regulations Compliance Calculation of wages proportionally (working time) of the Free Daily Worker should be reviewed in accordance with applicable regulations.

2 Minor 4.4.1 Water Management Program The Company should consider to test surface water quality at the point before enter the estate.

3 Minor 4.6.1 Reducing the use of pesticides of active Paraquat. Reduction of chemicals categorized as Type 1A (Brodifacum) and the pesticide active ingredient paraquat in order to follow up.

4 Minor 4.7.6 First Aid Emergency Equipment The Company should evaluate the completeness of first aid equipment in accordance with emergency first aid manual.

5 Minor 4.7.7 Understanding Of First Aid Emergency For Officers The Company should increase understanding of the workers who have been trained of first aid emergency.

6 Major 5.1.2 Minor 6.1.3

Reporting RKL and RPL (environmental management plan and environmental monitoring plan) The Company should synchronize data between RKL - RPL with SIA report.

7 Major 6.10.1 FFB Price Ujung Tanjung POM should re-evaluate mechanisms FFB delivery to third parties in transparency.

3.4.3

Noteworthy Positive Components

No Ref Std Descriptions

1 The company committed to apply the principles of sustainable palm oil (RSPO and ISPO).

2 Personal competence in their respective fields.

3 The provision of audit documents.

4 Implementation of Corporate Social Responsibility (CSR / Community Development) that has empowered some groups of people.

5 Had obtained several certificates related sustainable plantation management


ASSESSMENT REPORT


3.5 Summary of Arising Issues from Public, Organization and Auditor Response

Public Issues (Institution/ NGO/Community)

Management Responses Auditor Responses

Labor Agency – Siak District On behalf Mr. Izza CNT (Head of Work Norm): Company’s administration has submitted reports regularly to the Manpower and Transmigration agency – Siak District, such as: guiding committee of occupational safety & health report quarterly, wage reports, labour social assurance reports and routine report related with workers

Coordination with the Manpower and Transmigration Agency will be maintained and increased

The company can comply applicable regulations and obligations related to employment and acceptable to local communities and other parties.

Forestry and Plantation Agency - Siak District on Behalf Mr. Iyus Rizal (Secretary): The company has reported regularly related to the development of the plantation business to Forestry. Department . Plantation area is not a forest.

Coordination with Forestry and Plantation Agency y will be maintained and increased

The company can comply applicable regulations and obligations related to plantation operation and palm oil mill management

Kelompok Pencinta Alam Sakai Kandis Lestari – Local NGO

Mr. Mawardi (Chairman):

Communication and information procedures have been

socialized by the staff. It explained the stages and

requirements of proposal submission.

Companies together with KPA Sakai Kandis have

planting program in riparian and have socialized

protected animals around company area.

There is no pollution in the river.

There is assistance glasses for Sakai citizens

There is a mass circumcision program that will be held on

June 30th, 2013.

The company will maintain and coordinate with

Mountaineering Club of Sakai Kandis Lestari regarding

socialize of company programs and other social

activities, including activities concern to surrounding

community.

Company will increase participation of local contractors in the procurement of materials, equipment, labor and other facilities.

Company should improve and evaluate environmental programs. PT Ivomas Tunggal have CSR Plan 2013 which arrange based on basic needs identification in communities around, includes education, health, social and local business development.


ASSESSMENT REPORT


The company should pay more attention to the existence

and conduct training programs to improve the

competence of entrepreneurs / local contractors to

improve the competitiveness to get the project in PT.

Ivomas Tunggal, such as: gravel supply projects, housing

construction, and others.

Police Chief of Kandis Subdistrict

On behalf of Mr. Suparno ( Head of Police Siak)

The relationship with the company is harmonious. The

company constantly communicate and resolve problems

that occur under applicable law.

There is no conflict of land and environmental pollution.

Company should assist operational patrol vehicle in the

form of grants or leases vehicle.

The company will maintain and coordinate with police

officers in order to create a conducive situation

between the company and the surrounding community.

The Company has already facilitated the vehicle and

for a grant will be considered.

The company can improve communication and relationships with government officials.

Sakai tribal youth

On behalf of : Mr. Joni Saputra (Youth leaders Sakai Kandis)

In general, community support the existence of the company due

to considerable economic impact to community.

Most of Sakai people have low education, graduate from

elementary school so it hard to get job or position it the company.

Sakai tribal youth have proposed education scholarships for

citizens of Sakai tribe in 2013 and still waiting follow up from the

company.

The company has improved public education through the provision of eyeglasses, medical check up, scholarships (Diploma Smart, SMART Engineer), and currently consider about scholarships for elementary, middle and high school. Until now, there are 2 units smart houses in SRKE and SSME and has been used by the community around company.

Companies implemented CSR programs in accordance with the priority needs of local villagers. PT Ivomas Tunggal have CSR Plan 2013 which arrange based on basic needs identification in communities around, For example:

CSR program for Palapa Estate that includes

education, health and social services as much

Rp.61,060, 000.

Scholarship program for 9 Villagers of

Simpang Belutu village as much

Rp.12,600,000.


ASSESSMENT REPORT


Indigenous Institution of Melayu, Kandis On behalf of Mr. Haji Hasan Basri (Chairman of Indigenous Institution of Melayu) Existence PT Ivomas Tunggal have developed Kandis region. Company has build Indigenous Institution of Melayu building. In particular, Indigenous Institution of Melayu expects that the company can participate in the effort to preserve and develop the melayu culture. In addition, community also expects the company have scholarship program for citizens in all levels education from elementary school until college.

The company has improved public education through the provision of eyeglasses, medical checkup, scholarships (Diploma Smart, SMART Engineer), and currently consider about scholarships for elementary, middle and high school. Until now, there are 2 units smart houses in SRKE and SSME and has been used by the community around company.




Rp.61,060, 000.



Rp.12,600,000.

Local Contractor

On behalf of Mr. Aldi (Workshop contractor)

He is contractors who get assistance and guidance from

the company.

Mechanism from contract until payment both servces

work and good supply can accept it.

process payment should be accelerated.

Companies have paid payments according to the agreement that refers to the stage of work.

The Company should evaluate the effectiveness of the mechanism of agreements with contractors.

Bekalar village On behalf of Mr. Ussay (Head of Bekalar Village) In general, relationship with company is going well. Company well respond of requests such as borrowing heavy equipment for road repairs.

The company concern to improve of welfare surrounding community..

Companies implemented CSR programs in accordance with the priority needs of local villagers.


ASSESSMENT REPORT


There is a special program for 54 Sakai people in form of 10 kg of rice, 1 kg of sugar and 1 bottle of syrup every year since 2007. The company should have programof improvement or development appropriate housing for tribal Sakai people.

Proposed of appropriate housing for Sakai people will consider. Currently the company has built 1 building of Sakai youth and economic building for Sakai community

PT Ivomas Tunggal have CSR Plan 2013 which arrange based on basic needs identification in communities around, For example:



Rp.61,060, 000.



Rp.12,600,000.

Samsam Village On behalf of Mr. Panut ( village officer) Samsam villagers in KM.19 and Simpang Tales through the village officer expects the company can help construction / addition of classrooms for junior high school and build a high school. There is a livestock program from government , but community do not have the land to build cage so it cannot be realized. Community expect can be given 1 or 2 location for calf shed construction site.

In Samsam village, the Company has build 4 classrooms at SMK 01 Kandis. The company also have program of Etawa breeding for citizens around the company. For the pilot project, it was building stables for 100 Etawa located in Libo. Community proposal will be considered.




Rp.61,060, 000.



Rp.12,600,000.

Sakai Village On behalf of Mr. Muhammad Anwar (Sakai community leaders) In general, relationship with company is going well. There is no

The company concern to improve of welfare

Companies implemented CSR programs in


ASSESSMENT REPORT


environmental pollution and complaints. Sakai tribal people that total 54 families expect that the company can provide housing assistance, scholarship programs and more job opportunities, for example re planting work

surrounding community.. Proposed of appropriate housing for Sakai people will consider. Currently the company has hired Sakai community, especially in the replanted areas with total 117 people.

accordance with the priority needs of local villagers. PT Ivomas Tunggal have CSR Plan 2013 which arrange based on basic needs identification in communities around, For example:



Rp.61,060, 000.



Rp.12,600,000.

Region legislators Siak & Kandis Community Leaders

on behalf of : Mr. Mester Hamzah

Approximately 60% of the population Kandis are employees of PT.

Ivomas Tunggal .

PT Ivomas Tunggal have better waste management than

other companies.. There is no complaints from the public

related to environmental pollution.

Workers facility (housing, etc.) also better than other

companies.

There is no land conflicts.

There is no scholarships for top students in Kandis every

level of education and outside the children of company

employees. Though the company assessed the ability for it.

Community empowerment programs still responsive of

requests from local communities and indigenous (Sakai

tribal).

Waste management will be maintained so that no environmental pollution. The company's facilities will be maintained primarily for employee housing. The company is arrange scholarship program for local community from elementary school until collage for top students and less capable. The company conducted community empowerment without responsive elements such as empowerment blacksmiths, tailors, local contractors, workers loading and unloading as well as programs of improve skills through smart home




Rp.61,060, 000.



Rp.12,600,000.


ASSESSMENT REPORT


4.0 CERTIFIED ORGANISATION'S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Sign-off of Assessment Findings

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

Signed on behalf of:

Ivo Mas Tunggal Mutuagung Lestari

Head of Environment Department Lead Auditor

Izmu Zulfikar M. Syarip Lambaga

Friday: 31/July/2013 Friday: 31/July/2013


ASSESSMENT REPORT


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

No Institution/Department Address Phone/Email Form of

Contact

Date of

Contact

1 Labour Agency, Siak District

(Izza CNT)

Komplek Perkantoran

Pemda Siak-Tanjung

Betung, Siak Sri Indrapura,

Siak District

- Consultation June 5, 2013

2 Forestry and Plantation

Agency, Siak District (Iyus

Rizal)

Komplek Perkantoran

Pemda Siak-Tanjung

Betung, Siak Sri Indrapura,

Siak District

-

Consultation

June 5, 2013

3 National Land Agency, Siak

District

Jl. Prona-Siak Indrapura,

Siak District -

Consultation June 5, 2013

4 Environment Agency, Siak

District

Komplek Perkantoran

Pemda Siak, Tanjung

Agung, Siak District

-

Consultation June 5, 2013

5 Kelompok Pencinta Alam

Sakai Kandis Lestari – Local

NGO (Bp. Mawardi)

Sub District of Kandis

- Focus Grup

Discussion

June 5, 2013

6 Kandis Sub district Police

Chief (Bp. Suparno) Sub District of Kandis - Focus Grup

Discussion

June 5, 2013

7 Youth Leader of Sakai Kandis

(Bp. Joni Saputra)

Sub District of Kandis -

Focus Grup

Discussion

June 5, 2013

8 Indigenous Institution of

Melayu, Kandis (Bp. H. Hasan

Basri)


- Focus Grup

Discussion

June 5, 2013

9 Workshop Ivomas Tunggal

Lestari (Bp. Aldi)

Sub District of Kandis -

Focus Grup

Discussion

June 5, 2013

10 Head of Bekalar Village (Bp.

Ussay)

Bekalar Village, Sub District

of Kandis -

Focus Grup

Discussion

June 5, 2013

11 Village official of Samsam

village (Bp. Panut)

Samsam Village, Sub

District of Kandis -

Fokus Grup

Discussion

June 5, 2013

12 Community Leader of Sakai

(Muhamad Anwar)

Bekalar Village, Sub District

of Kandis -

Fokus Grup

DIscussion

June 5, 2013

13 Parliament Member Siak

District & Community Leader

of Kandis (Bp. Mester

Hamzah)


- Fokus Grup

Discussion

June 5, 2013


ASSESSMENT REPORT


DATE TANGGAL

4, 5, 12, 13 June 2013

PLANNED TIME

RENCANA WAKTU

ACTUAL DURATION

DURASI AKTUAL

PROCESSES / CLAUSES TO BE AUDITED PROSES / HAL YANG DIAUDIT

AUDITOR

Tuesday, 4 June 2013

06.00 - 08.00

08.30 - 11.30

11.30 – 12.00

06.00 - 08.00

08.30 - 11.30

11.30 – 12.00

Jakarta - Pekanbaru Pekanbaru – PT IVOMAS TUNGGAL Opening Meeting

SL / ARD / RR / SP / ON



Wednesday, 5 June 2013

08.00 - 12.00

08.00 - 12.00

Public Consultation

Public meeting (related community and villages) – IVOMAS

Related Govermnet Institution and NGO (SIAK)

SL / RR / ON

ARD / SP

Thursday, 6 June 2013

08.00 - 17.00

08.00 - 17.00

Collecting Audit Documentation and Preparation


Wednesday, 12 June 2013

08.00 - 12.00

14.00 – 17.30

08.00 - 12.00

14.00 – 17.30

Field Observation:

UJUNG TANJUNG POM: WWTP (IPAL), Operational, K3 (OHS), Supply Chain

UJUNG TANJUNG Estate: BMP aspect and sosial: Harvesting, Upkeep (spraying, fertilizing, EFB application) Worker Facilities (Housing, clean water, et..) Legal: Operational boundary and utilization Environment: Conservation area

Document Review of UJUNG TANJUNG POM and Supply Base (Ujung Tanjung Estate)

Basic Information

Principle 1 (Information request & Response)

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

Principle 3 (Company Working Plan and Replanting program)

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

SL / SP

ARD / RR / ON


Friday, 13 June 2013

08.00 – 10.30

08.00 – 10.30

Document Review of UJUNG TANJUNG POM and Supply Base (Ujung Tanjung Estate)

Principle 5 (Environment report, HCV area)

Principle 6 (Worker Contracts, Payment & Conditions, External Stakeholders Communications, Labor welfare and


Appendix 2. Assessment Programme


ASSESSMENT REPORT


DATE TANGGAL

4, 5, 12, 13 June 2013

PLANNED TIME

RENCANA WAKTU

ACTUAL DURATION

DURASI AKTUAL

PROCESSES / CLAUSES TO BE AUDITED PROSES / HAL YANG DIAUDIT

AUDITOR

10.30 – 14.00

15.00 – 16.30

17.30 – 20.00

10.30 – 14.00

15.00 – 16.30

17.30 – 20.00

facilities, local contributions)

Principle 7 (new planting or replanting implementation)

Principle 8 (Continuous Improvement) Audit Finding Conclusion Preparation (persiapan hasil kesimpulan audit) Closing Meeting PT IVOMAS TUNGGAL - PEKANBARU



Saturday, 14 June 2013

08.00 – 10.30

12.00 – 14.00

08.00 – 10.30

12.00 – 14.00

Audit Report Preparation Pekanbaru - Jakarta


Noted : Lunch and Break on 12.00 – 14.00 WIB.

SL: M.Syarip Lambaga ARD:Ardiansyah RR: Rudi Ramdan SP: Sandra Purba ON: Octo Nainggolan

The audit is based upon a representative sampling method therefore there may be non-conformances within the system that have not been identified during this audit.

Please inform Mutu Certification if you object to the appointment of the auditor or team members stated in this audit plan prior to the audit date

Kegiatan Audit ini berdasarkan metode pengambilan lokasi sample yang representative, oleh karena itu adanya kemungkinan

ketidaksesuaian yang tidak teridentifikasi di dalam sistem saat audit sertifikasi ini berlangsung


ASSESSMENT REPORT


Appendix 3. Glossary

EIA : Environmental Impact Analysis

APAR : Alat Pemadam Api Ringan (Fire Extingusher)

PPE : Personal Protective Equipment

B3 : Hazardous Waste

BAST : Berita Acara Serah Terima

BLH : Badan Lingkungan Hidup (Environment Agency)

BOD : Biological oxygen demand

BPN : National Land Agency

CD Chemical Oxygen Demand

CPO Crude Palm Oil

CSR/CD Corporate Social Responsibility/ Community Development

FFA Free Fatty Acid

FFB : Fresh Fruit Bunch

HGU : Hak Guna Usaha

HIRAC : Hazardous Identification of Risk Analysis & Control

IPM : Integrated Pest Management

IPAL : Instalasi Pengolahan Air Limbah

ISBPR : Identifikasi Sumber Bahaya dan Pengendalian Resiko (Source of Danger and Risk Control Identification)

ISPO : Indonesia Sustainable Palm Oil

IUP : Izin usaha perkebunan

Jamsostek : Jaminan Sosial Ketenagakerjaan

KCP : Kernel Crushing Plant

LC : Land Clearing

LCC : Legume Cover Crop

LSU : Leaf Sampling Unit

OSH : Occupational Health and Safety

PK : Palm Kernel

PKO : Palm Kernel Oil

POME : Palm Oil Mill Effluent

P2K3 : Panitia Pembina Keselamatan dan Kesehatan Kerja (Guiding Committee of Occupational Safety & Health)

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

RTRWP : Rencana Tata Ruang Wilayah Provinsi

RTRWK : Rencana Tata Ruang Wilayah Kabupaten/Kota

SEL : Studi Evaluasi Lingkungan (Environment Evaluation Study document)

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

SPSI : Serikat Pekerja Seluruh Indonesia (Indonesian Workers Union)


ASSESSMENT REPORT


SOP : Standar Operational Procedure

SSU : Soil Sampling Unit

UTJM : Ujung Tanjung Estate

UTNE : Ujung Tanjung Estate

UPDKS : Ulat Pemakan Daun Kelapa Sawit (Caterpillar Palm Leaf Eater)

VPA : Vice President Agronomy

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