Stage-1 [ ] Stage-2 [ ] SIME DARBY Plantation Sdn. Bhd. PT ......Prepared by Mutuagung Lestari for...

PT. MUTUAGUNG

LESTARI

ASSESSMENT REPORT

Roundtable on Sustainable Palm Oil Certification

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

Plantation Management/Owner : SIME DARBY Plantation Sdn. Bhd.

Plantation Name : PT GUTHRIE PECCONINA INDONESIA

Location :

Subdistrict of Lawang Wetan/Babat Toman/Sekayu, District of Musi Banyuasin, Province of South Sumatera , Indonesia

Certificate Code : MUTU-RSPO/017

Date of certificate issue : March 16th, 2012

Date of expiry of certificate : March 15th, 2017

Assessment Assessment

Date PT. Mutuagung Lestari

Auditor Checked

by Approved

by

ST-2 20 – 25 June 2011 Deni A. Novendi; Doni; Marsudi Eko

Santoso

Reny

Rustianingsih

Tony

Arifiarachman

S-1 29 January – 01 February 2013 13 February 2013

Deni A. Novendi; Bukti Bagja;

Marsudi Eko Santoso; Rudi

Ramdani

Octo HPN Nainggolan

Taufik Margani

S-2 16-20/12/2013 Bukti Bagja; Marsudi Eko Santoso; Rudi Ramdani; Sofyan Hadi Lubis

dan Andi Pratama Pasaribu

Octo HPN Nainggolan

Taufik Margani

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:

S-2 17 March 2014 - 17 February 2014

http://www.mutucertification.com/

PT. MUTUAGUNG

LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 1 Prepared by Mutuagung Lestari for PT Guthrie Pecconina Indonesia – Rantau Panjang POM

TABLE OF CONTENT

FIGURE

Figure 1. Location Map of PT Guthrie Pecconina Indonesia Figure 2. Operational Map of PT Guthrie Pecconina Indonesia

1 2

1.0 SCOPE of the SURVEILLANCE ASSESSMENT

1.1 National Interpretation Used 3

1.2 Organization Information 3

1.3 Type of Assessment 3

1.4 Location of Plantations, Mill and Area Statement 3

1.5 Description of Supply Base 4

1.6 Dates of Plantings and Cycles 5

1.7 Tonnage Certified 6

1.8 Other Certifications 6

1.9 Time-Bound Plan for Other Management Units 6

2.0 ASSESSMENT PROCESS

2.1 Certification Body 8

2.2 Assessment Team 8

2.3 Assessment Methodology, Assessment Process and Locations of Assessment 8

2.4 Stakeholder Consultation and List of Stakeholders Contacted 12

2.5 Date of Next Surveillance Visit 13

3.0 ASSESSMENT FINDINGS

3.1 3.2

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

11 32

3.3 Conformity Checklist of Certificate and Logo Use 36

3.4 Summary of RSPO Partial Certification 37

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

40

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

4.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Signing of Assessment Findings 51

APPENDICES

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

2. Assessment Program 52

3. Glossary 53

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT


Figure 1. Location Map of PT Guthrie Pecconina Indonesia

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT


Figure 2. Operational Map of PT Guthrie Pecconina Indonesia

PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 Page | 3

Prepared by Mutuagung Lestari for PT Guthrie Pecconina Indonesia – Rantau Panjang POM

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 MINAMAS Plantation – SIME DARBY Group

1.2.2 Contact person Mohamad Pirabaharan

1.2.3 Company address and site address The Plaza Lt. 36 Jl MH Thamrin Kav. 28-30 Jakarta 10350

1.2.4 Telephone +62-21-2992650

1.2.5 Fax +62-21-5711652

1.2.6 E-mail [email protected]

1.2.7 Web page address www.simedarby.com

1.2.8 Company status Swasta

1.2.9 Management Representative who completed the application for certification

Mohamad Pirabaharan (Head of PSQM)

1.2.10 Registered as RSPO member 1-0008-04-000-00 date of 08 September 2004

1.3 Type of Assessment

1.3.1 Scope of Assessment Palm Oil Mill and supply base

1.3.2 Type of certificate Single

1.3.3 Company names listed in the certificate PT Guthrie Pecconina Indonesia

1.3.4 Number of management unit 1 (one) palm oil mill unit (POM Rantau Panjang) with

FFB from 5 (five) estates unit, i.e.: Rantau Panjang

Estate (RJE), Bumi Ayu Estate (BYE), Karang Ringin

Estate (KRE), Napal Estate (NAE), and Mangun Jaya

Estate (MJE)

1.4 Locations of Mill, Plantations and Area Statement

1.4.1 Location of Estates

Name of Estates Location

GPS

Latitude Longitude

Rantau Panjang

Estate

Village of Rantau Panjang, Sub District Babat

Toman, District of Musi Banyuasin, Province of

South Sumatera

20 51' 3" - 20 57' 0"

S

1030 42' 9" - 1030 47' 1"

E

Bumi Ayu Estate Village of Bumi Ayu, Sub District of Babat


South Sumatera

20 50' 35" - 20 55' 2"

S

1030 38' 16" - 1030 42' 25"

E

mailto:[email protected]

http://www.simedarby.com/


ASSESSMENT REPORT

SPO – 4006a.5 Page | 4


Karang Ringin

Estate

Village of Karang Ringin II, Sub district of

Babat Toman, District of Musi Banyuasin,

Province of South Sumatera

20 46' 2" - 20 49' 46"

S

1030 35' 53" - 1030 39' 21"

E

Napal Estate Village of Napal, Sub District of Babat Toman,

District of Musi Banyuasin, Province of South

Sumatera

20 49' 25" - 20 52' 27"

S

1030 37' 36" - 1030 41' 16"

E

Mangun Jaya

Estate

Village of Mangun Jaya, Sub District of Babat


South Sumatera

20 48' 55" - 20 53' 54"

S

1030 33' 21" - 1030 38' 10"

E

1.4.2 Location of Mill

Name of Mill Location

GPS Latitude Longitude

Rantau Panjang

POM

Village of Rantau Panjang, Sub District of

Babat Toman, District of Musi Banyuasin,

Province of South Sumatera

020 54’ 59”

S

1030 44’ 52.17”

E

1.4.3 Tenure

Private

State - 10,139.91 ha (HGU Certificate No. 664/2003,

552/2003). - 1,569.16 ha (HGU in the application process to

BPN: Letter No. 122/GPI/UM/PSD/VI/2011, and 123/GPI/UM/PSD/VI/2011).

- 1,843 ha (HGU Application process to BPN: Letters No. 004/GPI/UM/PSD/II/10).

- Total Size of Land Use Permit and Land Use Permit in process = 13,552.91 ha.

- The reserve area is 531.24 ha.

Community

1.4.7 Area Statement

Total area 13.401,63 Ha

Planted area 10.074,07 Ha

Mill/ Emplasment/ Infrastructure (Road, Bridge and Drainage) 459,76 Ha

Unplanted area 4,27 Ha

Occupation 2.762,36 Ha

Others (reserve area) 45.79 Ha

HCV/ Conservation area (Hills, Valleys and swamps) 55,38 Ha

1.5 Description of Supply Base

1.5.1 Description of Mill

Name of Mill Capacity (tonnes/

hour)

FFB Processed

(tonnes/ year)

CPO Palm Kernel PKO

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Rantau Panjang 80 171,576.3 36,843.13 21.47 7,899.34 4.60 - -

* Source: Production realisation November 2012 - October 2013.


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SPO – 4006a.5 Page | 5


1.5.2 Description of Estate(s)

Name of Estate(s) Total Area

(Ha) Planted Area

(Ha) FFB

(tonnes/year) Yield

(tonnes/ha/year)

Supplied to Mill

FFB (tonnes/year)

%

Rantau Panjang Estate 3,534.79 2,857.21 58,166.13 20.36 51,320.55 88.23

Bumi Ayu Estate 2,960.95 2,226.02 44,649.22 20.06 39,262.99 87.94

Karang Ringin Estate 2,586.14 1,687.32 37,247.63 20.44 32,942.87 88.44

Napal Estate 2,762.28 1,822.23 28,177.41 16.70 21,792.10 77.34

Mangun Jaya Estate 1,557.47 1,481.29 22,517.39 16.53 18,799.94 83.49

Total 13,401.63 10,074.07 190,757.78 18.94 164,118.45 86.03

* Source: Production realisation November 2012 - October 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)

%

Ladang Panjang Estate

- PT. Bahari Gembira Ria, Kab. Muaro Jambi, Jambi

2,144.77 2,144.77 100

KKPA – SJE

- Kec. Sungai Keruh dan Sekayu, Kab. MUBA, Sumatera Selatan.

5,313.08 5,313.08 100

Total 7,457.85 100

*Source: FFB Receipt Data on November 2012 - October 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*

Tahun Tanam

Estate (Ha)

TOTAL Rantau Panjang Estate

Bumi Ayu Estate

Napal Estate

Karang Ringin Estate

Mangun Jaya Estate

1998 1,574.70 757.18 61,84 91.23

2,484.95

1999 611.48 687.37 1.322,73 428..94 225.85 3,276.36

2000 184.16 455.93 246,21 682.16 410.11 1,978.58

2001 174.98 - 142,80

559.84 877.62

2002 211.33 139.56

166.37 517.26

2003 - - 48,65 131.90

180,55

2004 - -

132.11

132.11

2005 100.56 -

67.57

168.13

2006 - -

-

2007 - -

153.41

153.41

2008 - 185.98

185.98

2009

-

2010

29.25 29.25

2011

89.87 89.87

Total Area Tertanam

2,857.21 2,226.02 1,822.23 1,687.32 1,481.29 10,074.07

1.6.2 New Planting area after November 2007 305.100 Ha


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SPO – 4006a.5 Page | 6


1.6.3 Planting Cycle 1s tCycle 25 Years

1.7 Approximate Tonnage Certified

1.7.1 Past Annual Claim Certified Product

FFB Production 186,004.88 Tonnes/year

CPO Production 43,040.35 Tonnes/year

Palm Kernel (PK) Production 8,913.36 Tonnes/year

Palm Kernel Oil (PKO) Production - Tonnes/year

1.7.2 Claim Certified Tonnage of FFB

Name of Estate(s)

Total Area (Ha)

Planted Area (Ha)

FFB (tonnes/year)

Yield (tonnes/ha/year)

Rantau Panjang Estate 3,534.79 2,857.21 62,237.76 21.78

Bumi Ayu Estate 2,960.95 2,226.02 47,774.67 21.46

Napal Estate 2,586.14 1,882.23 39,854.96 21.87

KarangRingin Estate 2,762.28 1,687.32 30,149.83 17.87

Mangun Jaya Estate 1,557.47 1,481.29 24,093.61 17.69

Total 13,401.63 10.074.07 204,,110.83 20.50

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 (%)

Rantau Panjang 80 204,110.83 46,946 23.0 9,185 4.5 - -

1.8 Other Certifications

1.8.1 ISO 9001:2008/ISO 14001: 2004 -

1.8.2 OHSAS 18001:2007 -

1.8.3 HACCP -

1.8.4 Others Zero Accident certificate from Labor Ministry of Indonesia (No. Kep 82/Men/V/2010.tanggal 4/5/2010)

1.9 Time Bound Plan for Other Management Units MINAMAS Plantation-SIME DARBY Group committed to prepare a time bound plan for all of other management units in order to adopt the P&C standard or to obtain RSPO certificate. And the audit team has considered it accordance to the RSPO Certification System documents – June 2007 for Partial Certification. Progress and follow up of the plan will be verified and reported on annual routine visit.

Certification Status Number of Strategic Operating

Units (SOUs)

Remark/Details

Malaysia Indonesia

Certified 33 14 Certified until December 2011

EB Review 6 5 It has been reviewed by Executive Board RSPO


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SPO – 4006a.5 Page | 7


Audited 0 5 3rd party audit or external audit completed on

July 2011.

Total SOUs 39 24

Management Unit

Address Hectarage

(Ha) *) Time Bound

Plan Status

PT. Indoturba Tengah Kab. Seruyan dan Kotawaringin Barat – Kalimantan Tengah

7.734,60 2010

Certified

PT. Tunggal Mitra Plantations

Kab. Rokan Hilir – Riau 13.836,00 2010 Certified

PT. Aneka Inti Persada Kab. Kotamadya Pekanbaru dan Siak – Riau 11.134,00 2011 Certified

PT. Bina Sains Cemerlang

Kab. Musi Rawas – Sumatera Selatan 6.513,00 2012 Certified

PT. Kridatama Lancar Kab. Seruyan dan Kotawaringin Timur – Kalimantan Tengah

14.779,92 2011 Certified

PT. Teguh Sempurna Kab. Seruyan dan Kotawaringin Timur – Kalimantan Tengah

16.601,66 2011 Certified

PT. Lahan Tani Sakti Kab. Rokan Hilir – Riau 3.759,02 2011 Certified

PT. Bhumireksa Nusa Sejati

Kab. Indra Giri Hilir – Riau 25.662,00 2011 Certified

PT. Sajang Heulang Kab. Tanah Bumbu – Kalimantan Selatan

7.794,00 2011 Certified

PT. Ladangrumpun Suburabadi

Kab. Tanah Bumbu – Kalimantan Selatan 6.077,00 2011 Certified

PT. Bersama Sejahtera Sakti

Kab. Kotabaru – Kalimantan selatan 12.704,54 2011 Certified

PT. Bahari Gembira Ria Kab. Muaro Jambi – Jambi 1.202,04 2012 Certified

PT. Langgeng Muaramakmur

Kab. Kotabaru – Kalimantan Selatan 16.361,77 2012 Certified

PT. Guthrie Pecconina Indonesia

Kab. Kotabaru – Kalimantan Selatan 14.892,00 2012 Certified

PT. Swadaya Andika Kab. Kotabaru – Kalimantan Selatan 10.361,18 2012 Certified

PT. Laguna Mandiri Kab. Kotabaru – Kalimantan Selatan 15.299,80 2011 Certified

PT. Tamaco Graha Krida Kab. Morowali – Sulawesi Tengah

4.145,00 2012 Certified

PT Sandika Natapalma / PT. Budidaya Agrolestari

Kab. Ketapang – Kalimantan Barat 1.002,21 8, 406.21

2011 Review by RSPO

PT. Mitra Austral Sejahtera

Kab. Sanggau – Kalimantan Barat 8.741,29 2013 2020

PT. Padang Palma Permai / PT. Perusahaan Sri Kuala/ Perkasa Subur Sakti (PKS Blang Simpo)

Kab. Aceh Tamiang dan Aceh Timur-Aceh 6.451,99/ 1.128,906

2011 Certified

PT. Guthrie Pecconina Indonesia

District of Musi Banyuasin – Sumatera Selatan 10.139,91 2012 Certified


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SPO – 4006a.5 Page | 8


2.0 ASSESSMENT PROCESS

2.1 Certification Body

PT Mutuagung Lestari

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

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

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

2.2 Assessment Team

2.2.1 Lead Assessor and Assessment Team

S-2 1. Bukti Bagja (Lead Auditor). Indonesian citizen, Master of Science in the field of Environmental Sciences, University of Indonesia. Training he has followed are: awarness of RSPO certification system. He has followed several activities GAP Analysis of the RSPO Principles and Criteria implementation in several oil palm plantations in Indonesia as assessor. Besides that he is also involved in several assessments HCV / HCV as an assessor with the specifications in the field of GIS (mapping). He has expertise in mapping such as ArcGIS, MapInfo, Global Mapper, ER Mapper, Erdas Imagine. In this activity, he has assessed for environment aspect, land conservation, water conservation and management of waste. In surveillance 1, he assessed on legal aspect, Erotion & Land Degradation, High Conservation Value, Environment Aspect.

2. Marsudi Eko Santoso (Auditor). Bachelor of Agriculture, Agro technology department. He attended in training of Management system ISO 9001-2008 and Roundtable sustainable palm oil lead auditor. And also he involved in several companies for RSPO assessment. Now, he works in independent certification body. In surveillance 1, he focused on verifying the best practices, manpower aspect, Occupational Safety and Health.

3. Rudi Ramdani (Auditor). Bachelor of Agriculture, Department of Agriculture. Program Agronomy, Faculty of Agriculture, Bogor Agricultural University. He has experience working as an Operations Staff plantation; work experience in corporate finance and has assessed the RSPO and ISPO. Training that have is the Awareness RSPO for Auditor; ISPO Auditor Training and ISO 9001 QUALITY. In surveillance 1, he focused on verifying on the technical aspects of cultivation.

4. Sofyan Hadi Lubis (Auditor). Master’s Program in Environmental and Natural Resource Management, Institutut Pertanian Bogor (IPB) and Bachelor of Social Economic Agriculture, Gadjah Mada University (UGM). Participated in several environmental management workshops, climate change mitigation training and adaptation for agricultural productivity in Southeast Asia, Carbon Forum Asia Update and EIA lecture. He has also been involved as a research team at the Centre for Research, Development and Climate Change Policy (Puspijak) Ministry of Forestry of Indonesia - Bogor and Research Team in cooperation program IPB - ETH Zurich Switzerland - NUS Singapore. He has followed Auditor training ISPO, ISO 9001-2008 and Awareness RSPo. Furthermore, he also worked as a staff environmental/agricultural in consulting firm and done the preparation of EIA (KA-ANDAL). In Surveillance 1, he focused on the environmen aspects and Sosial.

5. Andi Pratama Pasaribu (Observer). Bachelor of Agriculture, Department of Socioeconomic Aspect, Program Agribisnis Fakulty of Agricultural, Jember Universitas. He has experience as an operationals staff plantation. Training that have is the Awareness RSPO for Auditor and ISPO. In surveillance 1, he focused on the technical aspects of cultivation.

2.3 Assessment Methodology, Assessment Process and Locations of Assessment

2.3.1 Figure of person days to implement assessment

S-2 Number of auditors : 4 auditor Number of days for S-2 at site : 5 days Number of working days for S-2 at site : 20 Working days

2.3.2 Detail process of assessment

http://www.mutucertification.com/

mailto:[email protected]


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SPO – 4006a.5 Page | 9


S-2 The assessment was conducted by measuring the sufficiency of implementation with the consistency done by the PT Guthrie Pecconina Indonesia 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 S-2 delivered by the auditor MAL to the management unit and the results are the subject will be verified at the next assessment phase (S-3). Improvement of findings from main assesment findings were observed by auditors at this S-2 assessment. All information obtained was recorded in Check List of PT Mutuagung Lestari (MUTU) and part of S-2. The assessment program please find Appendix 2

2.3.3 Locations of Assessment

S-2 Here are field location visited by auditor team during 2nd Surveillance Estate Blok B021, 1st division (BYE): Observation and interviewing supervisor and harvester relate to harvesting activity. Harvesting personnel understands the standard of FFB ripeness. Supervisor is equipped with first aid box and also understand about how to give first aid. Harvesting personnel is equiped with PPE of harvesting (Helm, boot, sickle (one of harvesting tools), etc). Based on interview, it’s known that the salary has been fullfiling the regional minimum wages, personnel have been registered in labour social assurance. Personnel have known about the rule of prohibition to bring child to working area. Supervisor has conducted SIME Card mechanism in order to supervise the implementation occupational health and safety in estate operational. Blok K25-26, 3rd division (BYE): Observation and interviewing with FFB loading personnel. Personnel equipped with PPE (Helm and boot). Based on interwiew, it is known that salary has been fullfiling regional minimum wages, and personnnel have been registered in labour social assurance. Block B029, 1st Division (BYE): Observation and interviewing with supervisor and spraying personnel. Spraying personnel have been equipped with PPE (Glasses, masker, gloves, apron, boot). Based on interview, it’s known that BSS house has been well functions, personnel have known the policy of riparian spray boundary and get medical check up. Salary has been fullfilling the regional minimum wages, then personnel have been registered in labour sosial assurance. Personnel have understood the risk of chemical substance and also knows about leave entitlement (1st day & 2nd day) and existence of gender commitee. Block K22, 3rd Division(BYE): Observation and interviewing with personnel of empty fruit bunch application. Empty fruit bunch application is conducted manually. Personnel have known how to arrange empty fruit bunch application. Based on interview, it is known that salary has been fullfiling regional minimum wages, personnel are registered in labour social assurance. Block L19, 3rd Division (BYE): Observation of owl nests. Owl nest is in active condition,it’s habited by owl. Block L22, 3rd Division (BYE): Observation of Turnera Subulata cultivation and Antigonon leptosos as host plant to controll pests and diseases.


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House of BSS (BYE): Observation about the existence of spraying laundry, spraying container, spraying personnel showering area, processing of laundry waste to be reuse and work procedure of spraying team. Child Care (BYE) : Observation and interviewing with baby sitter relate to child care facility for personnel. There is no spraying and fertilizer personnel left their breastfeeding baby in child care. There is first aid box and training how to use first aid box. Sallary has been fullfiling regional minimum wages. Central Housing (BYE) : Observation and interviewing with personnel’s wife about house facility provided by company, such as emergency respond, management of domestic wasted, clean water facility (artesian well), respond to complaint about any damage in housing and the existence of mosque. Final Landfill (Block L19 BYE) : Observation and interviewing with NAE assistant relate to the existence of final landfill. Workshop (BYE). Observation and interviewing about the implementation of occupational health and safety, waste management and vehicle maintenance. Elementry School YP – GPI 2. Observation and interviewing with head master relate to company contribution in education field. Based on data from head master, there are 196 personnel’s children that studying in school and 53 students from community nearby. Central Warehouse (BYE) Observation and interviewing about keeping harzadous waste according to inventory safety list sheet, emergency facility and hazardous symbol installation, separate Non – Harzadous material management, implementation of occupational health and safety/ OHS (existence of fire extinguisher, first aid box, water tank truck, robin machine, fire extinguisher hose, existence of PPE, record of PPE out and use). Supporting Clinic (BYE) : Observation and interviewing with paramedic relate to health facilities for personnel and clinic waste management. Generator Hub (BYE): Observation of hazardous material management (used oil) is in accordance with the existing procedure, there are occupational health and safety signs and generator operator has used PPE standard. Block K Div. 1 (BYE) : Checking boundary poles ( Poles number BPN 58, BPN 59, BPN 60). Block K 19 – 20, Block K-14, Block J17-18 and Block AA – 32 – E03 (BYE) : Checking of HCV area and springs. Block K-27 (BYE) : Checking by using Viezometres and peatland checking. Block E012 (MJE) : Observation and interviewing with supervisor and spraying personnel. Spraying personnel have been equipped with PPE (Glasses, masker, gloves, apron, boot). Based on interview, it’s known that BSS house has been well functions, personnel have known the policy of riparian spray boundary and get medical check up. Salary has been fullfilling regional minimum wages, then personnel have been registered in labour sosial assurance. Personnel have understood the risk of chemical substance and also knows about leave entitlement (1st day & 2nd day) and existence of gender commitee. Supervisor has conducted SIME Card mechanism in order to supervise the implementation occupational health and safety in estate operational. Block B006 (MJE): Observation of Turnera subulata cultivation


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Block B006 (MJE) : Observation and interviewing with empty fruit bunch personnel and owl nest observation. Personnel have understood how to arrange empty fruit bunch in block. Owl nest is in active condition. It was found mouse bone in nest. Block M25 (MJE): Observation Boundary poles BPN No. 88, pole is in well maintain condition. Block M25 next to community’s rubber land, and the border of estate is trench. Blok M26 (MJE): Observation boundary poles BPN No. 87, poles is in well maintain condition. Block M25 next to community’s rubber land, the border of estate is trench. BSS House (MJE) : Observation about the existence of spraying laundry, spraying container, spraying personnel showering area, processing of laundry waste to be reuse and work procedure of spraying team. Child Care (BYE) : Observation and interviewing with baby sitter relate to facility of child care for personnel. There is no spraying and fertilizer personnel left their breastfeeding baby in child care. There is first aid box and training how to use first aid box. Sallary has been fullfiling regional minimum wages. Observing teaching and learning activities in kindergarten,and also observing playing and learning facilities for kids. Central Housing (BYE) : Observation and interviewing with personnel’s wife about house facility provided by company, such as emergency respond, processing domestic wasted, clean water facility (artesian well), respond to complaint about any damage in housing and the existence of mosque. Workshop (BYE). Observation and interviewing about the implementation of occupational health and safety, waste management and vehicle maintenance. Central Warehouse (MJE): Observation and interviewing about keeping harzadous waste according to inventory safety lists sheet, emergency facility and hazardous signs installation, separate Non – Harzadous material management, implementation of occupational health and safety (existence of fire extinguisher, first aid box, water tank truck, robin machine, fire extinguisher hose, existence of PPE, record of PPE out and use. Supporting Clinic (MJE) : Observation and interviewing with paramedic relate to health facilities for personnel and clinic waste management. Generator Hub (MJE): Observation of hazardous waste processing (used oil) is in accordance with existing procedure, there are occupational health and safety signs and generator operator has used PPE standard. Block E008 (MJE): Checking boundary poles (Poles number BPN 158) Block E005 (MJE): Checking boundary poles (Poles number BPN 53 and BPN 54) Block F8 dan F9: Checking Land Application (LA) area. Palm Oil Mill (POM) Processing room of POM Rantau Panjang : Observation and interviewing POM personnel and other related staff regard to FFB processing and implementation of OHSAS in POM. Hazardous Waste Warehouse of POM Rantau Panjang :


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Observation and interviewing with warehouse personnel relate to infrastructure of hazardous waste warehouse and management of that hazardous waste in PT. GPI. Central Clinic – NAE : Observation and interviewing with paramedic relate to health facilities for personnel, periodic medical check up and management of clinic waste. Monitoring Well LA- Block E8 : Observing management of LA well monitoring. Community and Stakeholders Block O-25 dan M-25 (BYE): Checking conflict area that has been solved completely. Meeting with Head of Indonesia labor union at MJE : Based on interview, it’s known :

1. There is lack of reimbursement of rice allowance as fixed allowance for personnel who absent without permission for period of January – December 2013. Company hasn’t implemented result of bipartite agreement.

2. Forming of Bipartite cooperation institution is still in process. The association hasn’t choose their representative due to committee replacement.

Research Development and Environment Bodies District of Musi Bayuasin : Interviewing with related official regard to managemeSnt of environment. Based on interview, company already has comitment to environmental management, such as measuring of liquid waste, management of hazardous material, and periodically report. Beside that, there is no complaint from community relate to polution. Labour and Transmigration Agency Musi Banyuasin District : Interviewing with head of labour supervision. Bassed on interview result, company has good commitment in employment field, such as : there is no child labour, existence of expert in occupation health and safety, conducting training for personnel competency, salary has been fullfilling regional minimum wage. Plantation Agency Distric of Musi Banyuasin : Interviewing with head of plantation inventory section. Based on interview result, company has good commitment in estate, such as reporting the improvement of estate periodically, there is no land conflict with community, and there is a plasma. Karang Ringin 2 Villages, Sub-District of Lawang Wetan, District of Musi Banyuasin: Interviewing with head of village, its topic relate to community. Based on interview result, company has good commitment to community, such as : conducting CSR program and local community empowerment. Rantau Kasih Village, Sub-District of Lawang Wetan, District of Musi Banyuasin: Interviewing with community leader, its topic relate to community. Based on interview result, company already has good commitment to community, such as : conducting CSR program, and local community empowerment. Talang Latas Hamlet, Bumi Ayu Village, District of Musi Banyuasin: Based on interview result, company already has good commitment to community, such as: conducting CSR program, and local community empowerment.

2.4 Stakeholder Consultation and List of Stakeholders Contacted

2.4.1 Summary of stakeholder consultation process.

Summary of stakeholder consultation process Consultation of stakeholders for PT Guthrie Pecconina Indonesia was held by public consultation meeting with internal stakeholders by interviews and local stakeholders conducted by visits to villages and interviews with local


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peoples. Numbers of input from stakeholders were clarified by PT Guthrie Pecconina Indonesia

2.4.2 List of stakeholder contacted

Please find appendix 3

2.5 Determining Next Visiting

The next visit (S-3) will be determined one year after this S-2 (December- 2014).


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

MUTUAGUNG LESTARI has conducted an assessment of PT Guthrie Pecconina Indonesia – Rantau Panjang POM, operation consisting of one (1) mill and 5 (five) oil palm estates. During the assessment, there were two (2) Nonconformities were assigned against Major Compliance Indicators and two (2) Nonconformities were assigned against Minor Compliance Indicators 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) Those corrective action(s) taken that consist of two (2) Major non-conformities and wo (2) Minor non-conformities had been closed out and shall be verified during next assessment.

MUTUAGUNG LESTARI found that PT Guthrie Pecconina Indonesia – Rantau Panjang POM , MINAMAS Plantation -

SIME DARBY Group, 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.

Therefore MUTUAGUNG LESTARI Recommends RSPO Certification of compliance is continued.

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.

Field Verification with stakeholder indicated that company records all information request from stakeholder and also its

response. Record of information request available in every estate include mill, represented as Logging incoming mail

books which is consist of : date, name/external institution, response, the intended division, finishing date, status, and

explanation.

For instance, there is a letter from PT. Anton Jaya dated on Mei 11, 2013, it’s about request for quotation of “Breker 160

A”. Company had responded that letter by approval from management, then make purchasing order No. 004/PO-

Intrn/BYE/V/2013, Dated Mei 11, 2013.

In Estate MJE, there is a letter from Labour Agency No. 48/Sisnakertrans/2013, Dated January 14, 2013, it relates to

existence of certified employee and certified training quotation for turbine operator,generator operator, conveyances tools

(Heavy Equipment) operator. Company responded that through a letter from Manager MJE No. 11/MJE/II/2013. It’s about

sending 2 participants to join training for heavy equipment operator and generator operator. That response letter was

completed by sending curriculum vitae of 2 participants to PT. Emco as implementer, and payment of training fee

(receipts available).

Expiration of document storage, and document destruction “request and response of information”, is adjusted accordance

with needs and SOP relate to “Records Management”, those are :


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The needs of auditing/assesment for 2 years.

The needs of reference for ten years

Law/ goverment regulation till there is revision.

Customer request for 1 year

Company revision, till there is a revision.

Land compensation records, unlimited time.

At the end period of document storage, authorized officer will review the end period of document expiration and

recommended document destruction method. If it is still needed, it will be kept in warehouse. Destruction and storage

method depend on person in charge in each department. For instance, document for financial audit on 2011 in form of

Cash Voucher, it was kept in Cash Voucher Folder (Including evidence of response about information request and proof

of payment for contractor). It’s kept in file cabinet, located in archive warehouse.

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 accessible information list for stakeholder as stated in SOP-008/GPI/2012 Dated December 1, 2012, it’s about

right of access to information. Before delivered to applicant, request of document and information by stakeholder have to

be approved by manager first. Some documents are available to the public : Building Use Title (BUT), SIUP (estate

business license)/Plantation Business Permit (PBP)/SITU,permitting, HCVA, SIA, liquid waste application, occupation

health and safety document. Complete accesable document/information list for stakeholder is available in 2nd Appendix of

SOP. It’s about Right of access to information.

Expiration of document storage, and document destruction “request and response of information”, is adjusted accordance

with needs and SOP relate to “Records Management”, those are :

The needs of auditing/assesment for 2 years.

The needs of reference for ten years

Law/ goverment regulation till there is revision.

Customer request for 1 year

Company revision, till there is a revision.

Land compensation records, unlimited time.


PRINCIPLE #2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

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

In general , the company has demonstrated compliance with laws and regulations , especially in the aspect of legality ,

environmental and labor as indicated by :

1. The existence of legal documents, such as Certificate of Land Use Title No. 664/2003 , 552/2003 for an area of

10139.91 ha corresponding with statue No. 5 of 1960 on Agrarian Principles . Land Use Title document also

accompanied with proof of community land compensation.


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2. Proposed Plantation Business Permit In accordance with the Regulation of the Minister of Agriculture No. 27 of 2008

jo . No. Permentan . 68 in 2013 . ( Until the year 2013, proposing Plantation BUsiness permit has not been

completed so the company needs to ensure the process of proposing Plantation Business Permit runs as the

procedure should be).

3. Provide Social Assurance , such as Labour Social Assurance, it is in accordance with statue No . 3 of 1992 .

4. Provide equipment of Occupational Safety and Health program ) for all employees in accordance with Statue No. 1

in1970.

5. Develop environmental management documents ( Environmental Management Plant / Environmental monitoring

PLan ) in accordance with Statue no. No. 23 of 1997 jo 32 of 2009 about the Protection and Management of the

Environment.

6. Do not perform clearing land by burning in accordance with statue no. 18 of 2004.

7. No discrimination against employees in accordance with Statue. 21, 1999 - ratification of the ILO anti- discrimination

as statedin the Collective Labour Agreement .

8. Company have permitt of a hazardous material management in accordance with the PP. 18 in 2009 .

9. Allocate most of the area as a conservation area according to Presidential Decree No. 32 of 1990 and Statue no.

41 of 1999 about Forestry.

10. Perform peat soil subsidence control, that was conducted through the water surface elevation settings as

Government Regulation No. 150 of 2000 about the ground of damage control for the production of biomass

11. The company has had worker union in accordance with the Statue 13 of 2003 about Employment

Public consultation to relevant agencies in Banyuasin particularly the Environment Bodies, Plantation and Forestry

Agency and Labour Agency stated that PT. GPI has been obedient and consistent towards existing regulations.

In addition, there is evidence of the company's efforts to adjust the estate operational to the changes of regulatory and

policy . such as:

1. Adjustment of labour wages in every year. It refers to the decision of the Governor of South Sumatra Province

about Sectoral Minimum Wages Prov. South Sumatra in 2013.

2. Revision of Environmental Management Effort – Environmental monitoring Effort in order to accommodate the

implementation of the Land Application permit according Ministerial Decree 28 and 29 LH 2003.

3. Perform peat soil subsidence control, that was conducted through the water surface elevation settings as

Government Regulation No. 150 of 2000 about the ground of damage control for the production of biomass and

Regulation of Agricultural Ministry No.14 of 2009 about the use of peat land for oil palm cultivation.

4. Equipping workers with PPE in accordance with Regulation of Labour Ministry No. 8 in 2010.

5. Implementation of OHSAS refers to the Government Regulation No. 50 in 2012.

6. The participation of the company in ISPO auditing, in accordance with Regulation of Agricultural Ministry No. 19 in

2011, etc.

As a guide, the company also has a list of rules and regulations in Indonesia that have to be fulfilled by estate.,as stated

in the List of Legislation" and "Summary Evaluation of Legal Compliance". The list contained in the regulations including:

statue, Government Regulation, Presidential Decree/ Presidential Directive, Regulation of the Minister (Minister of

Agriculture, Minister of Labour, Minister of Environment, Minister of Public Works), as well as other regulations such as

the Convention which has ratified by the Government. Beside that it also included an explanation of articles that must be

met, compliance indicators, compliance status, and information that shows the material fulfillment.


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SOP is available for the evaluation of the implementation of legal requirements compliance in the document No.. SOP-

003/GPI/2012 about "Legal Requirements" dated December 1, 2012. Evaluations are conducted regularly by appointed

officer. As a result there are tables and graphs "regulation compliance" and "Scoring Status of Compliance Legal

Requirements" which shows that the company has complied almost all existing regulations (97%).


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

There is evidence of ownership/commercial operation for estate, which is represented as Land Use Title for PT GPI, issued by national land agency No 8 year 2003 which covers an area of 10.139,91 ha, including RJE, BYE, NAE, and KRE. In addition, there is an area of 5661.72 hectares which is under the concession filing on behalf of PT. GPI so that the total concession is 15801.63. In accordance with the scope of the audit, there is an excluding to Sungai Jernih estate (2400 ha) that still in proposing Land Use Tittle. so the scope of the audit in accordance with Statement of 2013 area is 13,401.63 hectares.

There are 3261.72 hectares of estate that still in land use tittle submision process, in details: 1) an area of 1843.73 ha in accordance with the letter of request from PT. GPI No. 017/GPI/UM/PSD/IV/10. 2) An area of 1417.9916 ha which is in the process of filing cadastral. The total area of Land Use Title and the Land Use Title that still in submission processing is in accordance with the plantation area in the scope of the audit. By These explanations, the CAR 2012.01 was closed.

As the land business permit, there are Approval letter of Plantation Business Principle (SPUP) from the Ministry of

Agriculture of the Republic of Indonesia No.. HK.350/E5.531/07.95 dated July 25, 1995. It is for an area of 60,000 ha that

is integrated with 5 Palm Oil Processing units with a capacity of 60 tonnes FFB / hour. There Plantation Business Permit

issued by the Investment Coordinating Board no. 336/T/Agriculture/Industry /2004 dated October 27, 2004 about

business permit. The area that has got plantation business permit is 10.139.91 hectares in accordance with Land Use

Title that had been published. Latest, it’s also provided request letter for Plantation Business Registration No.

092/GPI/UM/PSD/IV/2012 dated 25 April 2012. It is for an area of 13553.63 ha.

Field investigation in Estate BYE and MJE show that the company has made a physical demarcation between the estate

area and community’s area in the form of ditches or embankments. However, the sample visits on the block "K" Division

1 BYE estate shows that some legal boundaries in the form of boundary poles was not found, particularly for BPN 58,

BPN 59, BPN 60. The sample in Block E008 showed catasdral pole BPN 158 was lost. The company has not been able

to show evidence of boundary poles maintenance in the form of an inventory of boundary poles condition, so there is

non-conformance between the standard and practice in the field (No. CAR. 2013.2 with major nonconformance).

Observation February 15, 2014.

Company showed improvement evidence in reinstallation of boundary poles that has been dissapear or broken. Reinstallation conducted based on Boundary poles map from National Land Agency, as indicated in documentation of poles installation number 57,58,59,60,61,62. Based on internal analysis, non-conformance happened because poles monitoring system hasn’t run consistently. As preventive step, company made schedule of poles monitoring for personnel in each estate and also monitoring form as reporting tools. Major non-conformance CAR No. 2013.2 is closed.

Based on interview with commmunity leader around the estate and verification with local goverment institution (Plantation

Agency, environment bodies and labour agency), there is no land confilct between estate and community. Land conflict

in PT GPI estate happened in some locations and whole conflict have been solved by giving compensation. For example,

land conflicts in the area of real BYE Ø25 block in the form of claims on farm land that has been built between PT. GPI


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with the public on behalf of Abel. The completion of the case has been continued up to the courts and won by Abel.

Examples of such cases has been completed legally and there is documentation for this case.

There are compensation evidences for land use title area, those are compensation receipt, compensation detail records

(Berita Acara Ganti Rugi), photo documentation. Compensation rate was determined by local goverment of Musi

Banyuasin District along with community and company.

Based on data and map of areal statement, there is PT. GPI’s area that can not be cultivated because it was community’s

land that has been cultivated before PT. GPI obtained land use title. All community’s land has been noted so that there is

accurate data about ownership. Base on PT. GPI internal mechanism, management will not conduct land clearing without

compensation agreement with land owner.

In general, the company had has participatory conflict resolving mechanism, that has been accepted by many parties in

SOP.SPO/2.2/PK. That mechanism has been socialized and consulted to the community arround the estate. There is

agreement record for those land conflicts that have been solved and in progress of solving.

Major 2.2.1

Status: CAR No. 2013.01 with Major Category (Closed with Observation)

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 information from community leaders around the estate and also verification toward the relevant government

agencies, it is known that there is no traditional right and indigenous people in community. River management system

through a contract or "pengemin" is not a traditional management system.


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.

Company have annual budget planning document for 2013/2014 and projection towards 3 years a head , 2015 – 2018 in

each estate. It is consist of estate activity projection, including areal statement, production planning, yield planning,

mature plant and immature plant, other sector (nursery, mild, housing, road, bridge, and trench), reserve area land

clearing , occupational, enclave. Non Plant Cost : road and bridge, building site, admint cost including ESH, labor cost..

Plants maintenance cost (immature plants, mature plants, land preparation, water management, cultivation, manuring,

sanitation, weeding, census, land conservation), harvesting and transporting. Company also has annual budget planning

document 2013/2014 and projection towards 3 years a head for mill which contsist of information about : Incoming FFB,

Extraction Rate (CPO and kernel), Production (CPO and PK), maximum processing capacity and stock palm product.

Company have document of Long Range Replanting Programme for period 2010 – 2030, its content is about next

replanting programme. Here are replanting criteria :

Plant life > 25 years

Yield < 18 ton/ha

Tall Plant > 15,1 m

Replanting is conducted systematically.


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For instance :

- BYE = replanting programme is planed on 2019-2029. Such as, Block B004 TT 2008 with 65,56 hectars of area,

ton/ha 11,30, sph 76 trees/ha.

- MJE = replanting program planed on 2019-2029. Such as, Block E001 TT 2001 with 102 hectars of area, ton/ha

16, sph 119 trees/ha.


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

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

Company already has had estate SOP, those are : SOP of Minamas Indonesia plantation, Reference manual of

agronomy No. Policy : 11/EST-ARM/08 endorsed by CEO on August 19, 2008, the content is description about : (1)

Operational standar for planting material, 2) Nursery Technique, 3) Replanting, 4) Land preparation, 5) Planting density,

6) Maturity age, 7) Field upkeep, 8) Manuring, 9) Canopy management, 10) Water management in peat area, 11)

Abration, 12) maturity standard, 13)Harvesting interval, 14) loose fruit collection, 15) Plant protection, (No Policy.

110/EST-ARM/13. No copy 30.11.09, Distribution date 16 September 2013).

The company already has documents for POM operational, those are : 1) Guidelines of POM operational techniques

Part I, Minamas Plantation No. Policy : 110/POD-FAC/07 which consist of basic guide fo palm oil processingr, 2)

Guidelines of POM techniques part II Minamas Plantation No. Policy 120/POD-FAC/07, 3) Guidelines of POM

administration procedure, Minamas Plantation 4) SOP of Product Traccebility

In order to monitor estate and POM operational, company carry out internal audit at least once in a year for mill and

estate. It’s conducted by Plantation Advisory and Mill Advisory. The results of internal audit are reported regularly as

report of Plantation Advisory Visit and POM Rantau Panjang Visit Report. That report discusses about estate activity :

cultivation, weeds, road, pruning, organic and anorganic manuring, harvesting and transporting, harvesting interval, water

management, pest and disease controlling (mouse and carterpillars). The scope of Mill internal audit report : non

comformance, Mill Up Keep, Production Efficienfy, Production cost, and implementation of maintenance system .

Example of document is Plantation Advisory of Bumi Ayu Estate period July2013, visiting date July 28-29, 2013; Mill Visit

Report (Minamas/RPF/02/12-13), visiting date May 13-15, 2013

Record of mill operational activity noted in RJF Monthly Report. For example, RJF monthly report for November 2013

consist of : production statistic; production capacity; extraction rate; quality; incoming data; production and extraction

statistic for December 2013; daily production data; Production Quality; Losses Againts FFB production; Mill Procost is

completed with management comments relate to things that cause any thing didnot meet the target.

Recording of estate operational activity is explained in Estate Unit Report (RJE,MJE, BYE, NAE, and KRE). For example estate unit report (BYE and MJE) on November 2012. These reports consist of : Areal statement; Organization Strusture; Personnel and community. That estate monthly report is monthly recapitulation from all estate operational activity. Before that report have been noted by supervisor and harvesting clerk in daily basis in each division, such as harvesting activity has been noted regularly by harvesting supervisor and harvesting clerk in Block B021, Division 1 BYE. Based on field observation, it is known that estate operational have been run based on existing procedure, for example empty fruit bunch implementation in Block K22 Division 3 BYE, it’s known that personnel have understood arrangement technique and implemented doses for each hectare.



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

Document of semi detailel soil survey is available. It’s conducted by PARAM AGRICULTURAL SOIL SURVEY, on

November 2008. Based on survey, it can be conclude that there is no marginal land in Area of PT. GPI. Soil analysis will

be conducted for every 5 years, meanwhile leaf analysis will be conducted in every year. In order to peat management,

on 2013, company through MRC’s Research Departmen has conducted survey of peat depth in whole area of PT. GPI.

Here are the area : RJE, BYE, NAE will be surveyed on February 2014, meanwhile KRE, MJE, and KKPA will be

surveyed on March 2014. (OFI.04.2013).

Here are evidence of leaf analysis on 2013 in order to prove an effort to maintain soil fertility :

1. There is document of leaf analysis in Bumi Ayu Estate, it was reported on August 29, 2013 (Sample taken on

May 14, 2013). Analysis result : Deficiency of Phospor (P), others elements , like K, Mg, Ca, B generally in

optimum condition. Example of result analysis in Block B017 : (5 On Dry Matter) P 0,136; K 0,924; Mg 0,319; Ca

0,614; B 20 ppm Dry Matter.

2. Document of leaf analysis for Mangun Jaya Estate (MJE) reported on August 29 2013 (Sample taken on May 15, 2013). Analysis result : Deficiency of P, eexmple of result analysis in Block E017 : (% on dry matter) ash 8,68; N 2,49; P 0,127; K 0,845; Mg 0,319; Ca 0,563; B 12,2.

Based on manuring program arranged by company, manuring for P element will be conducted on November 2013.

Here are recording of activity to improve soil fertility :

1. Manuring based on recommendation of soil and leaf analysis as indicated by documents of Oil Palm Fertilizer

for period January – June 2013 in whole estate of PT. GPI. Those documents contains information about block,

planting year, number of trees, broad of every block, implementation frequency, kind of applicated fertilizer (NK

Blend, RP, Kieserite, HGFB). For example, Mangun Jaya Estate (MJE) Division 1 (Planting year 199, 225, 85

hectare of area, number of trees 27.520), recommended doses of RP fertilizer is 1,5 kg/tree. Recommendation

has been implemented on November 2013 in 225,85 hectare of area, amount of applicated fertilizer 41.280 kg.

2. Application of empty fruit bunch as indicated in Evaluation Document of Application empty fruit bunch. For

example, in estate BYE Block N20 (Block area 20.52 Ha) for period 2012-2013. Untill November 2013, it have

been applicated 616,5 tons in 17,69 Ha of area. Empty fruit bunch application programme is stiil going on.

Based on obsevation and interview with supervisor and personnel of empty fruit bunch application in Block 029,

Division 1 BYE and Block B006 MJE, it iss known that palm empty fruit bunch application is in accordance with

existing programme and company procedure.


4.3 Practices minimize and control erosion and degradation of soils.

It has been available soil maps of semi-detailed soil survey, conducted by Param Agricultural Soil Surveys in Scale 1 : 100.000.

Survey was conducted on 2008. Based on that map, there are 31 types of soil (Malaysia Soil Nomenclature). Those types of soil

were classified in 4 group “soil management”, ie Group A, B, C and E. In essence the entire soil groups were not marginal soil, but

those soil group A, B, C, E are included as low fertility soil. It requires treatment to improve productivity. That soil map indicated that,

there are 1.180,03 Ha of peat area in PT GPI area. It was located in three estates : RJE (179,6 Ha), BYE (59,9 Ha), KRE (940,8 Ha),

that is categorized as marginal land.

In general there is no area that has steep slopes. However there is still strategy and hints for water and soil conservation in SOP of

agronomic practices. It was applied by Minimas Plantation since December 1, 2004. Those document manage how to make tools to


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prevent erosion, such as conservation trench, continued terrace, individual terrace, drainage trench and its maintenance, isolation

trench. Instruction in SOP is completed with illustration and related mathematic calculation.

Road maintanance programme has been explained in detain in SOP of manual agronomic practices, particularly in chapter 4

regarding to Building and maintenance of road /bridge. As implementation, there are document of road maintanance realization July

2012 – June 2013 in whole estate. The document informed about length of the road and its cost. There is no new road construction

budget in 2012-2013, it’s only budget for road maintenance. Based on field visit and interview with community leaders, company has

repaired broken road at jl pegadang,Karang Ringin 2 Village and repaired trench in Talang Latas Village.

Semidetail soil survey by Param Agricultural Soil Survey on 2008 indicated existence of peat area in area of PT. GPI. In order to

clarify that semi detail survey, it had been conducted survey of peat depth in three estates on August 28 till September 1, 2013 by

Minimas Research Center. Survey result showed that 82% of sampling point in RJE have peat depth < 3 metres, 95% of sampling

point in BYE have peat depth < 3 metres, and 98% ampling point in KRE have peat depth > 3 metres.

Programme of water surface and peatland management was conducted in accordance with SOP. Those are : 1) Building canal and

trench, 2) Building water gate (screw gate, flap gate, box culvert and other facilities), 3) Building zone in accordance with altitude, 4)

Installation of 46 viezometres that well distributed in all estate., 5)Installation peatland subsidence measurement poles in each zone,

6) Installation of water level monitoring in all peatland. The standard interval of peatlan water surface to trench side is about 50 – 60

centimetres, in order to make sure the availability of water in block.

Generally, there is no marginal soil in area of PT. GPI, however there is a strategy to manage marginal soil in those documents : 1)

Manual of peatland management, as mentioned in SOP of agronomic Practices Oil Palm 2004, Agronomy division. It consist of

information about land management, including peat land, 2) Semi-detailed soil survey on November 2008, conducted by Param

Agricultural Soil Surveys (M) SDN. BHD. Document of survey result informed about types of soil, soil management and slope class,

and also recommended soil management based on approriate condition.


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

It has been available soil maps of semi-detailed soil survey, conducted by Param Agricultural Soil Surveys in Scale 1 :

100.000. Survey was conducted on 2008. Based on that map, there are 31 types of soil (Malaysia Soil Nomenclature).

Those types of soil were classified in 4 group “soil management”, ie Group A, B, C and E. In essence the entire soil

groups were not marginal soil, but those soil group A, B, C, E are included as low fertility soil. It requires treatment to

improve productivity. That soil map indicated that, there are 1.180,03 Ha of peat area in PT GPI area. It was located in

three estates : RJE (179,6 Ha), BYE (59,9 Ha), KRE (940,8 Ha), that is categorized as marginal land.

In general there is no area that has steep slopes. However there is still strategy and hints for water and soil conservation

in SOP of agronomic practices. It was applied by Minimas Plantation since December 1, 2004. Those document manage

how to make tools to prevent erosion, such as conservation trench, continued terrace, individual terrace, drainage trench

and its maintenance, isolation trench. Instruction in SOP is completed with illustration and related mathematic calculation.

Road maintanance programme has been explained in detain in SOP of manual agronomic practices, particularly in

chapter 4 regarding to Building and maintenance of road /bridge. As implementation, there are document of road

maintanance realization July 2012 – June 2013 in whole estate. The document informed about length of the road and its

cost. There is no new road construction budget in 2012-2013, it’s only budget for road maintenance. Based on field visit

and interview with community leaders, company has repaired broken road at jl pegadang,Karang Ringin 2 Village and

repaired trench in Talang Latas Village.


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Semidetail soil survey by Param Agricultural Soil Survey on 2008 indicated existence of peat area in area of PT. GPI. In

order to clarify that semi detail survey, it had been conducted survey of peat depth in three estates on August 28 till

September 1, 2013 by Minimas Research Center. Survey result showed that 82% of sampling point in RJE have peat

depth < 3 metres, 95% of sampling point in BYE have peat depth < 3 metres, and 98% ampling point in KRE have peat

depth > 3 metres.

Programme of water surface and peatland management was conducted in accordance with SOP. Those are : 1) Building

canal and trench, 2) Building water gate (screw gate, flap gate, box culvert and other facilities), 3) Building zone in

accordance with altitude, 4) Installation of 46 viezometres that well distributed in all estate., 5)Installation peatland

subsidence measurement poles in each zone, 6) Installation of water level monitoring in all peatland. The standard

interval of peatlan water surface to trench side is about 50 – 60 centimetres, in order to make sure the availability of

water in block.

Generally, there is no marginal soil in area of PT. GPI, however there is a strategy to manage marginal soil in those

documents : 1) Manual of peatland management, as mentioned in SOP of agronomic Practices Oil Palm 2004, Agronomy

division. It consist of information about land management, including peat land, 2) Semi-detailed soil survey on November

2008, conducted by Param Agricultural Soil Surveys (M) SDN. BHD. Document of survey result informed about types of

soil, soil management and slope class, and also recommended soil management based on approriate condition.


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

The Company has an IPM program in each estate, as shown by the following records:

Estate BYE and MJE: based on interviews with staff of PT GPI, it is known that the IPM program has been carried out

every month that began with the census. If there is a census result that exceeds the threshold, then it will be conducted

controlling and monitoring the effectiveness of countermeasures for every 2 weeks until normal conditions achieved. IPM

program include:

(1) Census of carterpillars and its controlling

(2) Census of ganoderma attack

(3) Census of termites control

(4) Census of owl BOB monitoring

There are also realization recordings of Integrated Pest Management Program for each estate that informs about the plan

and the realization of the beneficial plant cultivation in 2012, monitoring owl nest box and its effectiveness evaluation. For

example, for Bumi Ayu Estate:

1. Census beetle horns and mice, as shown in November 2013, Census has been conducted by Officer A. Warli in

block B021 on November 16, 2013. The result is that no pest attack. Mice attack 26 of 70 palm trees. There

was 5 bittens for each tree.

2. Census of nettle caterpillars, for example census in block B024 dated December 10, 2013. The result is no

nettle caterpillars attack to 85 palm trees.

3. Planting and treatment of beneficial plant: The company has a program and the realization of the beneficial

plant for the year 2013/2014. Examples of implementation in the field B028 TT 1998, planted with Turnera

subulata. It has been embedded along the 70 m. The planting target is 138 m untill 2013


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4. Monitoring BOB Census: BYE owl census documents are available on October 2013. The results: available

28 bob with the monitoring results 28 BOB, inhabited 9, 19 uninhabited, and there are 2 eggs (32.14%

occupation rate). For the period of 2014 the company has budgeted manufacture BYE BOB in as many as 46

pieces. Ratio BOB / ha for 1 BOB: 40 ha and it is still not achieved.

Pesticide Usage Data is also available for each estate over a period of one year . It’s inform about: Type of Pesticide,

Registration Number, use of pesticides, the use of pesticides / ha, the total active ingredients used, Tons of FFB and

Active Ingredients / Hectare which informs about the toxicity of pesticides (active ingredient / ton FFB and Active

ingredient / hectare). For example, the use of pesticides in Bumi Ayu Estate: pesticide Starane 200 EC; Reg No.

RI.854/7-2009/T; Active Ingredients Fluoroksipir; usage per hectare (0:04 l / ha); toxicity of pesticides (Active Ingredients /

ha = 0:04 l / ha).


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

Company already has list of herbicides used in 2012, which is consist of 9 kinds of pesticides: Starane 200 EC

(Flouroksipir), Audit 486 As (Glyphosate), Kenlon 480 AS (Triclopyr butoxy ethyl ester), Metaprima ( methyl metsulfuron),

Trap 20 WP (Metyl metsulfuron), Trendy 20 WP (Methyl metsulforon). Nine types of those herbicides do not contain of

prohibited active ingredients Type 1 A & 1 B, and it has been registered in Indonesia Agriculture Department. Based on

field observation, it is known that spraying in circle and harvesting path at block B029 division 3 BYE had used registered

pesticide : brand audit (Active ingredients Isopropyl Amine Glyphosat) and Metaprima (active ingredient : Metyl

metsulfuron).

Document of herbicide usage in each estate that inform about active ingredients used, aplication area, amount of usage

/hectare, and also recommended dosage. There is no over dosage of pesticide usage. For example : Bumi Ayu Estate

(BYE), in period 2012 – 2013 have used herbicide Starane 200 EC 0.04l/ha; Metaprima 20 WP 0,004 kg/ha. There is

also records the use of herbicides for period 2012-2013 in each estate,including document of planning and realization of

circle and harvesting path. it informed about amount of used pesticide, application area.

Spraying personnel have got training about chemical usage. Training document of spraying team available in all estate of

PT. GPI. It consist of : Spraying SOP, PPE usage, HIRAC, discipline on the road. Training details :

a. Bumi Ayu Estate : safety briefing for spraying team on October 15, 2012 attended by 24 participants.

b. Mangun Jaya Estate: Documentation of SOP training, HIRAC and MSDS spray, attended by 13 participants on 13

july 2013 in Block E016, topic : Description of spraying SDOP< Hirac spraying, MSDS herbicide component.

Based on hazardous material management, pesticide packaging waste was kept in hazardous waste warehouse, POM

Rantai Panjang. In order to monitor in and out of hazardous waste, PT. GPI already have monitoring document like

hazardous waste balance sheet, that is renewed in every month accordance in actual data of in and out hazardous

waste, include waste of pesticide packaging. Based on field visit to BYE and MJE, it is known that there is no waste of

pesticide packaging. There is manifest document of hazardous waste dated December 6, 2013, in order to handover

593,2 kg of good contamination from hazardous waste temporary warehouse RJF to PT. PRIMANRU JAYA branch


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Jambi, No. BC0013411, plat number of vehicle B 9405 NQA.

Memorandum from head plantation operation number : POD-UM-127/X/2008 dated November 4, 2008 relate to

recommendation about substitution of active ingredients Paraquat-Gramoxone in Minimas area. Based on study to the

list of herbicide usage in 2012 at PT. GPI, there is no paraquat active ingredients in herbicide usage.

Based on field observation and study of recapitulation document in 2013, there is no over control pest attack in PT. GPI.

Using of beneficial plant and owl is quite effective to control pest.

Periodically medical check up for high risk personnel (Sprayer personnel and manuring personnel) have been conducted

for every 6 month by a physician company ( Certified No. 20.275/DH-XVII/08 and decree appointing letter No. Kep

35/PPK-PNK3/KK/II/2009). There is document of check up result in second semester of 2013, conducted on November

4 till December 20, 2013. Based on field observation result to spraying personnel in block B029 BYE and block E012

MJE, it is known that there is no spraying personnel who are pregnant and breastfeeding.

Company has registration book of employee medical treatment, who managed by physician in estate. That document

informed about number of personnel who got medical treatment in estate clinic, including pregancy checking for woman

personnel. As evidence of prohibiton for pregnant woman personnel to work in division that dealing with chemical, here

are documents :

1. Attendance document of woman employee in BYE, period Janury November 2013. For Example, On November 16,

2013 which shows that a pregnant employee on behalf Dasminilawati (Manuring Worker) has taken 1 day off D1, and

the workers on behalf Winarsih (care workers) who take leave pregnant starting on December 23, 2013 till March 24,

2014 (passes were known / approved by the midwife clinic Company).

2. Documents from midwife MJE dated October 8, 2013 who noted result of the medical examinationon behalf

Purwanti (workers fertilization) were confirmed pregnant. The workers have been transferred to the treatment. Based

on a review of attendance documents for fertilization worker in November 2013, it showed that she has moved to

care section.


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

Health and Safety policies approved by the Head Plantation Upstream Indonesia, in December 2011, which states that

the Indonesian Upstream Plantaion (Minamas Plantation) is committed to providing and maintaining a safe and healthy

work environment by applying effective management to prevent accidents and un healthy environment for staff /

employees, contractors and guests / visitors.

OHS program realization and Environmental Protection PT GPI, Period July 2013 - June 2014, those are: Daily

Inspectionof OHS and environment, health examination every 6 months, meeting OHS every 3 months, Inspection OHS

Equipment every month and ESH Assesssment every 6 months, examination cleanliness of the housing / daycare /

school and clinic every month.

Examples of realization of programs and OHS policies :

1. Daily Inspection of OHS-E, as indicated by PPE checklist during the safety briefing and SIME CARD.

2. ESH Assessment by ESH Manager on December 6, 2013 at Mangunjaya Estate, in RTF and BYE on

December 3, 2013.

3. Examination of the cleanliness of the housing / daycare / school and polyclinic on November 2013.


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4. Sime observation Card filled out by supervisor (Manger 2/month; Assistant 2/month; supervisor 5/month).

5. The Company has in any health care in each estate led by the company physician (Dr. Waluyo), nurses and

midwives (8 person)

6. There are also guiding committee of occupational safety and health which has been endorsed by the Head of

Agency of Labour and Transmigration Musi Banyuasin. Each management unit (Estate and POM), guiding

committee of occupational safety and health conduct regular meetings and submit a report to the labour agency

for every 3 months.

Based on the verification of documents and payment of Labour Social Assurance dues and employee list, note that the

entire workforce has been included in the labour social assurance. Based on interviews with employees and the worker

unions it’s known that all employees have registered as members of Labour Social Assurance

Refering to the periodic inspection of documents in Second Half of 2013 and document of high-risk workers identification

by OHS Expert, it was found that there are high-risk workers who do not get regular medical check up. Minor Non -

Conformance CAR.2013.03.

Observation of December 23, 2013.

Periodic medical check up for high-risk workers have done every 6 months for estate workers (Spray, fertilizer,

warehouses) and POM (Process, Maintenance, Warehouse and laboratory) by the company physician (Certificate No.

20.275/DH-XVII/08 and appointment letter No. Kep 36/PPK-PNK3/KK/II/2009). There is documents of medical check up

result period the second half of 2013 conducted on November 4 till December 20, 2013 to 274 high risk workers in

estate and 20 high-risk workers in POM. Miinor Non- ConformanceCAR No. 2013.3 is closed.

The company has HIRAC document in each estate as shown by documents in Karang Ringin, socialized on April 4, 2011.

HIRAC documents in the estate explain about OHS aspects for each activity in estate. For example on the type of

Harvesting work (Block Harvesting System) there is an analysis as follows: length harvesting activities adjust to the pole,

there is a hazard of finger pinch, there is efect of injured finger, the risk (E = L, P = L; R = L), risk control by practisingf the

use of harvesting Pole to all workers.

Document HIRAC for Rantau Panjang Factory (RJF) which describes OHS for each job at each station. For example:

Checking and cleaning the fan impeller in Kernel and Nut station. The analysis are as follows: Hazard caused by hitting

theimpeller fan, efect of hand broke, Risk (E = H, P = L, R = M), Risk Control through "Lock Out - Tag Out System ", the

installation of the sign “there are repairment”, supervision, Drafting of SOP, Safety Training Awerenes, and use of

appropriate PPE.

Training records are available in order to support the worker competencies regard to the implementation of OHS, those

are :

1. Certificate of Boiler Operator Class I, for example, on behalf of Datuk Chairulloh (Certificate No. 10.1721/PNK3-

PUBT/OB-I/XII/10) and Purnawan (Certificate No. 10.1721/PNK3-PUBT/OB-I/XII/10).

2. Boiler Operator Certificate, for example on behalf of Hafiz Sobri (No. 889/PL/KK/OB-I/IX/04 certificate ) .

3. Certificate of OHS operator loader on behalf of Sanro CH Sirait (No. 11.10190-OPK3-PAA/VII/2011).

4. Steam Turbine Operator Certificate on behalf Mesran Sumedi (No. 11.065/OPD/KK-M/VII/2011).

5. Environmental Safety and Health Training for supervisor, conducted by PT. Indosafe Primary, for example, on

behalf of Zaherudin (No. IP/ESH/37182/2012) and Zulfikar (No. IP/ESH/37178/2012).


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6. Certificate for welder, from Industrial Training Center. For example, on behalf of Zulfikar, the certificate No.

000/3208/UPTD.BLKI/NAKERTRANS/2010, skills trainingfor Non Institutional Welders, conducted on June 28 -

June 30, 2010 (30 Hour learning).

7. Certificate for Welders on behalf of Zulfikar, issued by the Director General of Oil and Gas No.

759/38.01/DJM/2001 with qualifications (Standard ASME Section IX; SMAW welding process; No. WPS

TBP/SMAW/WPS/PTK/001) dated February 10, 2001.

8. Certificate Hiperkes and safety training for paramedics in Company, On Dec 20 - December 24, 2008 certificate

No.Sket.24/SJ-PK3/X/08.

9. Records of training for OHS skilled workers, attendaed by 6 participants from PT GPI which conducted on

March 11- March 23, 2013 at Ibis Hotel Pekanbaru .

The Company has SOP of emergency response system including:

1. SOP Preparedness and Response and Recovery state (No.7309/GPI/11) enacted on February 10, 2011 and

distributed on February 19, 2011.

2. SOP of Fire Prevention and Control include fire prevention; Countermeasures fire with a fire extinguisher and

hydrant; Countermeasures fires land (preparation, extinguishing the fire by squads Fire, prevention of fire

expansion)

3. Evacuation SOP (7301/GPI/11) dated February 10, 2011, distribution date of February 19, 2011

4. Earthquake SOP (7312/GPI/11) dated February 10, 2011, distribution date of February 19, 2011

5. SOP of Flood Prevention (006/GPI-11) dated March 15, 2011

6. Standard of fire extnguisher includes the installation of the fire extinguisher.

The company also has formed Emergency Response Teams in every estate. For example in RJF, team commander was

Datuk Chairullah. Response Team headed by Zulfikar with 4 members; Evacuation Team led by Furman Gusalam with 4

Members, Transport and Fund team led by Syarpani with 3 members.

To improve the competence of the team, it have done such a Emergency Response Team Training: Training emergency

response for thunder struck, earthquakes and fires (use of fire extinguisher , hidrant and fire blanket) , conducted on

January 19, 2013 attended by 22 participants from the mill and estate (squad commander and representatives of

member 2 people).

Evidence of PPE distribution document is available, for example:

1. Document expenditures in BYE warehouse with No. Bon Request Item 19/BPB/XII/2013 dated December 17,

2013 for 20 pieces of goods helmets for harvesting; 13 pieces fabric gloves for loading and 7unit of Aprons for

spraying.

2. PPE handover document in MJE, 1st Division dated on July 29, 2013, it’s about distributing18 units of the

apron to the sprayer and 8 helmets for supervisor dated onOctober 12, 2013.

Based on of field visits result at several locations, such as: warehouse, daycare, workshops, POM, and Schools, the

company has provided First Aid box and fire extinguisher in sufficient quantities and it ‘s monitored every month (see

OFI# 6). Companies are encouraged to evaluate the adequacy of the number of First Aid boxes at POM.

The Company has conducted First Aid Training for personnel in estate and POM, those are:

1. First Aid Training in RJE , attended by officers, conducted on November 21, 2012.


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2. First Aid Training in NAE, attended by OHS officers, conducted on December 19, 2012.

3. First AidTraining on March 26, 2011 which was attended by 83 participants . Docoment was completed with

photo ofactivities and attendance list. Training materials presented by the Physiacian in esate (Dr. Waluyo) and

equipped with a list of attendees (estate and POM personnel.)

Based on field visits and interviews in estate and POM, it is known that there is personnel who had got OHS training in

each work activity, particularly supervisor.

Data of occupational accidents have been reported in the Periodic Reports to Guding Committe of occupation safety and

health. It was reported to Labour and Transmigration Agency every 3 months. Recommended corrective actions on the

monitoring form of occupational accidents has been filled and implemented in order to prevent the simillar cases

happened again. Data of Guiding Committee shows that during 2013 there were no occupational accidents.


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

The company has had a continuous training program for staff, employees and contractors. An example is the existence of

a training program for annual period July 2013 - June 2014 which provide a description of training programs based on

training needs for each position, completed with detail schedule.

As evidence of the implementation, the company has a record of training that has been carried out in the document

Recapitulation Employee Training (staff) at each estate and also in the factory. The document contains information about

the name of employees, number of employees holding, job title, type of training, years of training and the existence of the

certificate. Training records stored properly at the HRM and Kasie. For example, the realization that training has been

conducted in accordance with the training program and the identification of training needs, are:

1. Training of Suplay Chain Certification Systems on December 19, 2013 was attended by 9 participants (new

employees in POM).

2. First AidsTraining for 49 officers in estate and POM, conducted on November 26, 2013 in the Central Clinic by

physician and paramedics in company.

3. Training in the use of fire extinguisher at MJE on September 7, 2013, it was attended by 20 employees.

4. Training of HIRAC for drivers, heavy equipment operators and contractors in MJE. It was attended by 16

participants.

5. Training of Standard Operation Procedure and tasks for operators in the POM, conducted on November 8,

2013. It was attendedProcessing Assiatant and 10 operators from procesing division.

For non-employee workers (contractors), the company has been made requirement as stated in the Letter of Agreement.

It obligates contractor to employ trained personnel, for example for a driver , he must have a driver's license. Selection of

contractors was chosen based on tender and work experience consideration. Conducted training for local contractors in

accordance with the training program in each estate. For instance, Training for Contractor and assistant of Karang

Ringin estate on January 3, 2013 followed by 6 contractor employees of CV Dewa Sawit Mandiri and Arton Jaya. The

training covers topic about potential hazards, prevention of occupational accident , the importance of OHS, PPE use and

allocation of work.

Companies need to create a system of evaluation for the contractor to ensure the consistency of the contractor

competence eligibility (OFI # 07).


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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.

PT GPI has EIA document that has been approved by Department of Agriculture. No. 01/ANDAL/RKL-RPL/BA/II/1999

dated February 8, 1999 include 87,000 ha study area, and revision document of RPL (Environmental Monitoringt Plan) /

RKL (Environmental Management Plan) plantation activities. POM of PT Guthrie Pecconina approved by the

Environment Body, District. Musi Banyuasin, No. 1198 Year 2010 Dated on November 5, 2010. Study area covers an

area of 15,425.32 ha consist of GPI (RJE): 3,534.79 ha, GPI II (BYE): 2,669.86 ha, GPI III (NAE): 3,576.54 ha, GPI IV

(KRE): 4,085.53 ha and GPV (MJE) 1,558.50 ha. POM have 80 tons/hour engine capacity and FFB production 60 Tons

per hour. Based on those study results and field observation during Surveillance-2, it was not found thr change in terms

of the area of operations and company activities so that there is no revision of environmental management (EIA

document).

Regular reports RKL / RPL First Half of 2013 has been reported to 1) Environmental Bodies of South Sumatra Province

dated 09.06.2013 and received by Ms. Yanti, 2) Environment ministry dated 09/05/2013 and environment bodies District.

Musi Banyuasin - Sekayu dated 09/01/2013, includes: 1) Public Unrest, 2) Air Quality and Noise, Groundwater Quality,

River Quality, 3) Liquid Waste Quality & Hazardous Material, 4) Potency of Fire and 5) Flora & Fauna. However,

monitoring of erosionlevel has not been recorded in the Implementation Report RKL / RPL 1st half of 2013 according to

the EIA document. Major Non- Conformance CAR No. 2013.04.

Observation February 10, 2014.

The company has shown a corrective action records, represented as the measurement results of erosion rate on

December 2013 using a measuring instrument in accordance with the standard of Environment Minister Regulation No.

7 in 2006. The results of these measurements have been included in the RKL-RPL Report for 2nd Semester in 2013. It

was sent toEnvironment Bodies District Musi Banyuasin on January 16. By this measuremen results of erosion rate.

Major non- Conformance CAR No. 2013.04 is closed.

Based on the interview with the Head of Environmental Impact Control Analysis and Environmental Bodies of District.

Musi Banyuasin, it is known that PT GPI has conducted regular RKL/RPL reporting and coordination in the case of

environmental problems.

Status Non Compliance : CAR No. 2013.04 was closed

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

PT. GPI has identified ERTs and HCV on November 2009. The results of identification show an important plant such as:

Kempas (Koompasia malaccensis), Beehive (Koompasia excelsa), Tampuy (Baccaurea macrocatpa), Lagerstroemia

(Lagerstomia speciosa) and tembesu (Fragrae fragrans). Important animals such as: root tiger (Felis bangalensis),

kingfisher bird (Alceda atthis), and lizard (Varanus nebulosus). Habitats of high conservation value were identified as

HCV 1.1, HCV 1.2., HCV 1.3, 4.1 HCV, HCV 5 and HCV 6 with an area of 784.77 hectares.


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In order to manage the area of HCV, HCV management program is available for each estate (Bumi Ayu, Rantau

Panjang, marl, Karang Ringin, and Mangunjaya). It describes theactivities plan for area stabilization of HCV, Socialization

of HCV Area existence, the security of HCV Area, inventory and rehabilitation damaged areas of HCV, institutional

strengthening, Drafting of SOP and guidelines of human resources improvement, Procurement of infrastructure, as well

as monitoring. To monitor the management, It have been made the annual report for evaluating the implementation of

the HCV management in PT.GPI in 2012. It contains the progress of HCV activities such as planting, patrols, installation

and maintenance signboard, socialization, and so forth. In general, the steps that have been taken in accordance with

existing regulations such as the Presidential Decree No. 32 of 1990 About Protected Areas and Statues No. 5 of 1990

about Conservation of Natural Resources and Ecosystems and deri vative regulations

Regards to the management of HCV, sign has been installed on the riparian area as a buffer area and conservation area

for endangered species. Installation of conservation sign around the HCV 5 (spring). The warning signs is an appeal to all

parties, both the employees and the community. Socialization protection of flora and fauna have been carried out by PT.

GPI to the internal, community, the village/subdistric/district goverment officer. Socialization material is provided by

PT.GPI in form of printed material and warning sign board inform about prohibition of illegal hunting. (there are 52

warning sign board scattered throughout the area of PT. GPI). In 2013, the condition of warning boards are still in good

condition and well maintained.

For HCV management, PT. GPI has had appointed officer who has a task to manage HCV in each estate. Each officer

has received HCV training.

Status : Full Compliance

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

Regard to waste management, PT. GPI has identified the sources of waste through: 1) EIA documents prepared in

December 1998, 2) Document of waste identification resources (waste type, waste resources and waste management),

3) identification matrices of Exhaust Emission for POM RJF which explains category of Air Pollution and emissions,

Noise; emissions source and pollution control.

In accordance with field verification, company perform and implement the company's waste management plan, such as:

hazardous waste stored in a licensed warehouse and shipped to the legal hazardous waste processor. Liquid waste is

used for land application and it has obtained a license from thehead of Environment Agency District. Musi Banyuasin,

solid waste in the form of empty fruit bunch, is used as a material for organic fertilizer,etc.

Hazardous waste management plans are listed in document of waste resources and SOP of hazardous waste

management, SOP-25/GPI/2012 entitled "Standard Operating Procedure for hazardous material, compiled on

December 1, 2012 and was approved by the management.. Plann of Hazardous waste management will be in

accordance with existing statue and regulations in Indonesia. SOP of hazardous management includes : registration of

hazardous waste, hazardous packaging criteria, packaging storage required, hazardous waste storage in the storage

facilities, flow diagram that describes handling process of used pesticide packaging.

Company have Records of monitoring and analysis of solid and liquid waste utilization. Listing of solid waste is done

periodically in to monitor the use of solid waste in empty fruit bunch, fiber, shells, and liquid waste that was flowed into

the Application Land. For monitoring in and out of hazardous waste , PT. GPI has had a balance sheet of hazardous

waste. it is updated every month based on actual data regards to in and out of hazardous waste. Balance sheet of

Hazardous Waste are reported periodically to Environment Bodies of Musi Banyuasin District.


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

Waste used as a renewable energy source is fiber and shell for boiler combustion. The Company has recorded a

fuel consumption of fiber and shell as well as the energy that is generated periodically. Records analysis of eficiency

of renewable energy used is compiled in the form of a comparative analysis between the use of renewable energy

(fiber and shell) with CPO production in tonnes of fiber and shell / tonne of CPO. Such as :

Month Processed

FFB ProducedCPO Fibre Shell Ttl KwH

KwH/Ton

FFB

KwH/Ton

CPO

Sep 2013 21,576,588 4,521,010 2,589,191 861,064 521,600 0,02 0,12

Okt 2013 21,882,062 4,824,273 2,625,847 875,282 594,560 0,03 0,12

Nov 2013 22,582,002 4,745,565 2,709,840 903,280 589,200 0,03 0,12

The company also has to monitor the use of diesel fuel on a regular basis, for example:

September 2013: 0.40 liters / tonne of FFB (budget) and the realization of 1.00 liters / tonne of FFB; October 2013:

0.35 liters / tonne of FFB (budget) and the realization of 0.76 liters / tonne of FFB; November 2013: 0.73 liters /

tonne of FFB (budget) and the realization of 0.61 liters / tonne of FFB. Total average - average in 2013: 0.49 liters /

tonne of FFB (Budget) and the realization of 2.43 liters / tonne of FFB. Average - average diesel consumption in

2013 amounted to 2.43 MCC liters / tonne of FFB, higher than the budget 0.49 liters / tonne of FFB. This is because

the high breakdown hours , that is 117.41% of the standard which should be only 2.5%. But this time in the context

of the efficiency of the use of diesel fuel, the company has sought to repair Boiler and Long Conveyor Fibre.


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.

PT GPI' has policy is not to burn during land clearing and replanting (replanting), in accordance with existing SOP of

land clearings in Minamas Plantation, those are:

1. Manual of continued plantation management, No. Policy 724/TQE-SPMS/09 points 5.7.2 regards to Zero

Burning Technique.

2. The company's policy is contained in the Reference Manual of Palm Oil Agronomy Part 4: Preparation of

Land (Land Application) Points 3.1.b Stating that land clearing must be in accordance with the decree of the

Director General of Plantation No.. KB.110/SK/DJ BUN/05.95, dated May 30, 1995 concerning the technical

manual of land clearing without burning. as a guideline for the development of plantation land preparation

without burning, then the Clearing activities (Land Clearing) should be based on the contents of the letter.

In the Reference Manual of agronomy No. 110/EST-ARM/08 section 4 of the land preparation, explained that land

preparation is done in a way without combustion (zero burning). This is evidenced also by the land preparation

report, in which there is no combustion stage.

There are Procedure of land fire extinguishers (No.SOP-17/GPI/2012) approved on December 1, 2012 include

preventive activities (prevention), curative (action), and administrating. In such procedures have described the

stages of fire prevention and adequate fire countermeasures. Examples of preventive measures that have been

done are: mapping the fire-prone areas, carry out patrols with frequency according to the level of vulnerability,


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twarning sign in fire-prones areas, etc.

Facilities and infrastructure of PT GPI fire extinguishers are in RJE and KRE:

1. RJE: Robin Engines (1 unit), Honda water pump machine 1 unit, 2 pieces suction hose, flashlight 2 pieces,

4 pairs of safety shoes, mask 10 pieces; bucket 2 pieces, Fire blanket 2 pieces, 2 pieces of machetes, hoes

1 piece , 2trailer trank with capacity 2000 litres, 8 glasses, 10 pieces waterpack.

2. KRE: Sihabura 1 unit, 1 unit of 5M suction hose, exhaust hose 20M (5 pieces), 1 water tank unit, Bucket 5

pieces, 5 pieces of masks, Apron 5 pieces, Nozzle 1 piece, 5 pieces Helmet, Mask 5 pieces, gloves 5

pieces, 5 glasses , 1 piece of fire blanket.


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

The Company has identified sources of pollution and emissions in palm oil mill, which is as follows:

Category Source Explanation

Air POlution & Emission

Boiler Chimney

The impact of production activities resulted in the smoke

released from the boiler containing chemical substances: NO2,

SO2, H2S, particulates, Ipasitas, CL2, and Ammonia

Generator Chimney

The impact of production activities generate smoke released

from Genset containing chemical substances: NO2, SO2,

particulate matter and opacity

Air Polution Vehicle Smoke Dirty air caused by smoke in motor vehicles

Noise Turbine, Generator, Boiler

The sound generated from all production activities sourced from

the engine in mill.

In addition, the company also has conducted periodic monitoring of air quality and emissions every six months and report

the test results to relevant agencies: Here are the results of air quality and emissions testing are documented in the

Report on the Implementation of RKL / RPL Semester 1.

Ambient Air Quality Testing Results Date 01/18/2013 (Certificate No. 660/03/SPPC-UA/I/2013)

Parameter s Denomination

Result Maximum level of

standard quality In front of

office Housing

CO µg/Nm3 2.290 1.145 30.000

SO2 µg/Nm3 183 118 900

NO2 µg/Nm3 109 101 400

NH3 Ppm 0,040 0,071 2.0

TSP µg/Nm3 33.1 14,3 230

Noise dB 55,1 43,5 55 (housing)

70 (industry)


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Description:

References Quality Standards: South Sumatra Governor Regulation No.. 17 of 2005

Laboratory Tests: Environmental Laboratory of Environment Bodies, South Sumatra Province (accredited)

Generator Emissions Testing Date 03/08/2013 (Certificate No. 660/04/SPPC-UE/II/2013)

Parameters Denomination

Result Maximum level of

standard quality In front of

office Housing

NO2 µg/Nm3 143 87,2 10.000

SO2 µg/Nm3 249 133 800

H2S µg/Nm3 0,128 0,116 -

Particulate µg/Nm3 12 14 150

Opacity % 10 10 20

Description:

Quality Standard reference: Ministry Rgulation LH No. 21/2008 about Quality Standard Source Emissions (Annex

IV.a). Laboratory Tests: Environmental laboratory of Environment Bodies, South Sumatra Province.

Boiler Emission Testing Date 08/03/2013 (Certificate No. 660/41/SPPC-UE/II/2013)

Parameters Denomination Result Maximum level of

Standard Quality Boiler 1 Boiler 2

NO2 µg/Nm3

Tidak Beroperasi

52,3 800

SO2 µg/Nm3 212 600

H2S µg/Nm3 0,23 -

Particulate µg/Nm3 55 300

Opacity % < 20 30

Cl2 µg/Nm3 0,015 5

NH3 µg/Nm3 0,25 1

HF µg/Nm3 0,33 8

Description:

Reference of Quality Standard: Ministry Regulation LH No. 07/2007 (Annex I)

Laboratory Tests: Environmental Laboratory of Environment Bodies, South Sumatra Province

Ambient Air Testing

No. Certificate 660/41/SPPC-UA/II/2013

Parameter s Denomination

Analysis Result Maximum Level

of Standard

Quality

Boiler

Station

Power

station in

House

Kernel

Station

Press

Station

Vibration n/dt2 10,2 8,6 7,0 6,6 40

Noise dBA 89,7 93 97,9 89,7 55


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Description:

Quality Standard References: MInistry Decree No. LH. 49 In 1996

Laboratory Tests: Environmental Laboratory of Environment Agency, South Sumatra Province

Based on the above test, the noise parameter is above the standard. However, the company has made efforts to

reduce / control, including:

• Noise-proofing in the mill / occupational environment at least 6 months

• Perform maintenance on plant machinery

• Strive to do the cleaning and checking the machine at least 6 months

• All employees are required to use PPE (earplug)

• Planting trees around the mill

Certificate holder has made efforts to reduce pollution and emissions, those are recorded in the report of Exhaust Emission Identification POM PT GPI, signed by the Mil Managerl:

Category Sources Reduction Efforts

Air Pollution and

emission

Boiler Chimney 1. Examination of the boiler exhaust emissions as much as 2

times a year

2. Cleaning the boiler at least once in 6 months

3. All workers in the boiler area use PPE

4. Boiler Maintenance

5. Perform greening around the mill and housing

Generator Chimney

1. Examination of the exhaust emissions in generator

2. Cleaning the generator at least once 6 months

3. All workers in the area Genset use PPE

4. Generator Maintenance

5. Perform greening around the mill and housing

Noise Turbine, Generator and

Boiler

1. Noise-proofing in the mill / occupational environment at least 6

months

2. Perform maintenance on plant machinery

3. Strive to do the cleaning and checking the machine at least 6

months

4. All employees are required to use PPE (earplug)

Air Polution Vehicle Smokes Maintenance of motor vehicle engines at least once in 6 months

The company has made efforts to reduce pollution and emissions as recorded in the Exhaust Emission Identification

Report POM PT GPI signed by the Manager Mill. Records of reduction effort are available as mentioned in the table

above.

PT GPI has a Liquid Waste Utilization Permit on land (land application), published by Regent of Musi Banyuasin through

letter No.. 601 of 2011 dated May 18, 2011. Permit valid for 5 years, it is until 2016. That permit describes about the

location of the Land Application includes Rantau Panjang Estate (RJE) Block A006 is covering 46 hectares, Block A011

is covering 57 hectares, Block A012 is covering an area of 56 hectares and Block A013 is covering 41 hectares. The total


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SPO – 4006a.5 Page | 34


land area is permitted for Land Application is 200 hectares.

Before POME could be utilized on land application, It should be managed in WWTP that consists of 8 pool: 1) 1stCooling

pond, volume 3600 m3 2) 2ndCooling Pond, volume 4800 m3, 3) 3rd Cooling Pond, volume 4800 m3, 4) 4th anaerobic

Pond, volumes of 10 114 m3, 5) 5th anaerobic Pond Volume 10. 114 m3 6) 6thAerobic Pond volume of 48 510 m3 7) 7th

Aerobic Pond volume 48 510 m3 8) Collection Pond.

Monitoring the management of POME has been conducted periodically by PT GPI include: 1) conduct regular monitoring

of liquid waste quality, 2) checking the liquid waste flow, 3) reporting liquid water quality to relevant agencies.


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 had document of a positive and negative impact analysis of estate development to community

documents in the EIA document that has been approved by the Agribusiness Bodies, Department of Agriculture.

01/ANDAL/RKL-RPL/BA/II/1999 dated February 8, 1999. In addition to the EIA, Social Impact Assessment is also

available (SIA) for Oil Palm Plantations PT. GPI South Sumatra in 2010. It includes information on positive and negative

impacts caused by the operation of estate and POM. The positive impact of the presence of PT. GPI are: local

employment either in the estate or in the mill, establishment of micro enterprises such as shops, stalls and mobile

merchant, availability of basic educational institutions, health care facilities (clinic and doctors).

The Company has established and periodically report on the implementation of the RKL and RPL, including social

impacts in the form of social unrest. Records of environmental management reports are available in the document RKL /

RPL. those are submitted to the relevant agencies.

In accordance with the analysis of the document, the company has had EIA was approved by the Agribusiness Bodies,

Department of Agriculture. 01/ANDAL/RKL-RPL/BA/II/1999 dated February 8, 1999 include 87,000 ha study area. The

change specifications especially Land estates Application causing the company conduct revision regards to additional

coverage of RPL / RKL, approved by environment agency District Musi Banyuasin No. 1198 Year 2010 November 5,

2010. Preparation of documents RKL / RPL compiled based on Environment Minister Regulation No. 8 of 2006

concerning draftingof EIA guidelines. Revision of environmental management documents includes working area of PT

GPI and the impact on the environment and social activities.

Reporting EIA conducted by PT GPI in the form of RPL/ RKL that was reported regularly every 6 months, for example

RKL / RPL report, 1st half of 2013 which includes the social impact that is social unrest. However, the social impact in

that reports has not included evidence of participatory monitoring as required by the EIA document. Therefore,

companies must be able to show evidence of participatory social impact monitoring. Minor non-conformance CAR No.

2013.05.

Observation February 13, 2014. On February 13, 2014, the company has shown a recording of corrective action as indicated in RKL/RPL, second semester. In the report there is evidence of participatory monitoring of social impacts, one of the participatory technique is by the help of the community questionnaire. Minor nonconformance CAR No. 2013.05 is closed.


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The company has a plasma to the surrounding community with a cooperative credit scheme (CCS) that is run in full

manage. Plasma are not included in the scope of the RSPO certification. It is planned to be included in the 3rd

Surveillance activity in 2015. CCS was built based Cooperative agreement with Sinar Delima Village Cooperative Unit

(VCU) No. 001/Plasma/GPI-KUD/I/2012 about Palm oil estate development through CSS mechanism (Primary

Cooperative Credit for Members).

Status : Non compliance CAR No. 2013.5 is closed

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

The company has revised procedure of communication and consultation with community, SOP Number. 007/GPI/2012

dated 12/01/2012 and signed by each estate manager. This SOP has been consulted and socialized to community

around esstate, those are: 1) Karang Ringin 2 Village dated Nov 27, 2013; 2) Talang Latas Hamlet dated Nov 27,2013,

and 3) Rantau Kasih Village dated January 9 , 2013. Based on interview , village communities understood the

procedure that has been socialized to them, for example: how to deliver complaint, the deadline of complaints responses,

the tool used to deliver a complaint, etc.

The company has a list of stakeholders, consisting of name, position, address and telephone number. List of

stakeholders consisting of: 1) Local Government, 2) the Central Government, 3) NGOs, 4) Community leaders, 5)

Contractor, Supplier and costumer PT GPI, 6) School, 7) Hospitals, Insurance, Banking.

Aspirations of the community that have been responded by the company , for example :

1. Village Community of Talang Latas (Bumi Bayu Estate) on 11/27/2013 due to clogged in company’s trench. It will

makes water spilled into community land when rain comes. The company has responded it on November 13, 2013.

The response was by providing 3 pieces of Pipe size 6 inches ( aspiration recorded in the book of BYE

community / employee complaint) and it is also provided evidence of internal purchase request No. .

009/BYE/XII/2013 dated 05/12/2013).

2. Community of Karang Ringin 2 ( Karang Ringin Estate ) on June 5, 2013 complaint about repairment of broken

roads in Jl. Penggadang, Karang Ringin 2 Village. The company has responded by sending heavy equipment and 1

unit Compactor & Road greader (aspiration recorded in inbox of community complaints) and it is also available

evidence of a request for roads repairment that was approved by Estate Manager dated June 5, 2013.

3. May 5, 2013 regards to Permission for the use of road for transporting Community’s FFB. The company has

allowed the community to use the road and opened the estate gate (aspiration recorded in the books of incoming

mail 2013).

Company has determined the officer to conduct consultation and communication with the community, they are : 1) Mr.

Ahmad Yani through Estate Manager Decree No. 001/Mgr-SK/III/2011 on March 31, 2011 and 2) Mr. Heriadi, Estate

Manager Decree No. 223/Mgr-SK/XII/2013 on December 14, 2013. The tasks performed are: 1) Handle CSR; 2)

Addressing land issues, and 3) PR of PT GPI.


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 revised procedure of communication and consultation with community, SOP Number. 007/GPI/2012


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dated 12/01/2012 and signed by each estate manager. Examination of complaints records indicates the number of

complaints from the community and has been responded by the company, such as: 1) a complaint regarding

Kindergarten Building by villagers in Rantau Kasih (MJE) in April 2013. The company response is to provide a grant of

IDR 207.000.000,00 and 2) the complaints about road and trench by Talang Atas Community (Bumi Ayu Estate dated

November 27, 2013. The company has responded it on November 13, 2013. The response was by providing 3 pieces of

Pipe size 6 inches.

The company has revised SOP conflict solving with community in the SOP document number. SPO-004/GPI/2012 dated

December 1, 2012. SOP is equipped with an illustration (Flow Chart) Gradually Conflict Resolution that was ended with

the legal process if an agreement is not reached. Based on the results of field observation there is no land conflicts in the

area of the company.


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.

Based on a review of documents, interviews with the community and field observation, there was no compensation for

the loss of traditional/ legal rights . It was conducted in 2012-2013.


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.

Available evidence of consultations with Labour Agency, regard to the determination wages in 2013 in PT GPI dated July

3, 2013 in the form of letter No.. 560/713/Sosnakertrans/HIPK/2013 point 4 stated that when allowances are applied that

should be as a fixed allowance, and the consequences of that are:

1. Fixed Payment in for each month, and not affected by presence. It is still be paid while on leave, unable to work

during illness or injury, are absent from work due to a valid license, etc stipulated in existing legislation.

2. As a basis for the calculation of overtime wages, Social Assurance dues, compensation for occupational

accidents, death benefits, health care benefits, severance pay, termination, or any THR payment calculation is

based on a wage (basic wage + fixed allowances).

OFI # 09: Companies should follow up the implementation of an agreement with workers unions regards to wage

payments in 2013 are currently in the process of approval from headquarters.

Cooperative agreement between representatives of company and employees dated July 30, 2013 related to the

implementation of the payment of wages refers to the UMP South Sumatra Province in 2013 according to Governor

Decree. 560/1104/DISNAKERTRANS/2013 ,as much as Rp 1,63 million. Agreements made were:

1. The provisions of the prevailing wage for 2013 is as follows;

• Wages money paid Rp. 1,510,000

• Natura for workers (15Kg/bulan) is a fixed allowance.

• Natura for dependents (family) is not fixed allowance.

2. This provision shall become effective in January 2013, if there is a difference for the payment of the new wage. it will

be recalculated by the company and it will be accumulated. Time and implementation will be managed and implemented

by the company.


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Based on example of employee paychecks document dated December 1, 2013, the rice supply payment data, example

of overtime document, it is known that the company has implemented agreement for workers employed full one month,

but for workers who are absent (some times do not come to work) rice has not been paid fully (15 Kg). Available evidence

submission process of changes in calculation system of rice supply from management unit to the HRM. Based on the

letter management request that payment of rice allowance conducted before December 2013.

There are two types of company rules that apply to PT GPI, which is defined by theRegulation BKS-PPS (Agency for

Cooperation - Sumatera Plantations Company) with the central Board SPSI (Indonesia Workers Union) Agriculture and

Plantations in Indonesia (enacted on May 10 July 2012), applies to employees of monthly and daily SKU (effective from

10 July 2012 s / d 09 July 2014) As for Staff using the Collective Labour Agreement (CLA) between Minamas Plantation

Minamas Plantation with bipartite cooperation institution and Chairman of 40 PT) which has been signed by the relevant

parties on the date of June 7, 2012 in accordance with the decision of the Director General of Industrial Relations and

Labor and Social Assurance No.. Kep. 98/PHIJSK-PKKAD/PKB/VI/2012 dated June 19, 2012. Effective as of February

24, 2012 until 23 February 2014.

Public facilities and infrastructure provided by the company, those are :

- MJE: 1 unit House of Manager, Assistant House 2 units, 47 units House of G2 Employee, 3 units house of

Employee G6 3 units, 1 unit Home Bss / BMS G2 1, child care and 1 unit early childhood school, 1 unit

mosque, cl 1 unit clinic. Wells are also available in each housing, as a source of clean water.

- BYE: 1 Unit house of manager G1, 1 unit house of assitants, 180 unit house G2, 9 units of G10 (90 doors), 1

unit clinic, daycare 1 unit, 1 unit Mosque, Kindergarten and 1 unit Primary school (6 rooms). Some workers live

in surrounding villages. Wells are also available in each housing, as a source of clean water.

- POM: 1 unit house of manager , 1 unit house of assistant, assistant house 4 units, 8 doors of G2 supervisor

house ,20 doors house of G2 employees, 1 unit GM mill house and mill 1 unit. Most employees of RJF occupy

RJE home. sSource of water comes from the Water Treatment Plant which is distributed to employees through

the pipeline system.

Based on observations and interviews with some workers iit is known that public facilities are provided, for example

housing, places of worship, sports facilities, schools and infrastructure (roads, bridges, water and light) have been

available in adequate amount and good condition.

The company has obligated any stakeholders, in this case is the contractor to comply existing regulations in terms of

employment as stated in the letter agreement. For example: Working Agreement No 058/SPK/LKL/PT. GPI-RJF/X/2013

between PT. GPI with CV. Chiba Construction (Contractor Repair Services of Loading ramp), in clause stated that the

second parties (CV. Chiba Construction) fullfiled mandatory regards to OHS provisions, Labour Social Assurance and

approriate wages.

OFI # 10: Companies need to create a system of evaluation for the contractor to ensure the consistency of the contractor

to compliance existing regulations in terms of employment.


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.


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The company has a policy that gives the freedom to worker to have association in Guideliness of continued Plantation

Management (No.Policy 724/TQEM-SPMS/09 dated 27/08/2010).

There are records of union meetings, those are:

- Documentation of the agreement / bipartite collective bargaining dated July 3, 2013 between representatives of

PT GPI with PUK SPSI FSPPP BPE, SPF, RJF, SPE, GPI, NAE, KRE, BYE. The conclusions are: the prevailing

wage provisions in 2013: money wages Rp.1.510.000; natura of labor is fixed allowance of 15 kg; natura for

dependents (family) is not fixed allowance. The meeting was attended by representatives of the four companies

and 13 representatives of the workers.

- Documentation of the minutes of meeting and attendance list in inauguration activities of worker Union units.

Agriculture and Plantation Workers, Indonesia Workers Union PT. GPI Mangun Jaya Estate period 2013-2018,

which was held on December 10, 2013, for position : Chairman, Vice Chairman, Secretary, Vice Secretary,

Treasurer, Vice Treasurer, Public Relations. The meeting was attended by 33 participants, company

representatives, 3 representatives of Labour and Transmigration Agency District . Muba. Available

documentation of Instruction Letter number 946/Sosnakertrans/HIPK/2013 war dated December 10, 2013 to:

Purson, SH (Planner / III / c); H. UMardin, S. Pd (Plannet I), and Faezal Primary A, SH . M.Si (Young Planner I )

to attend the inauguration of Workers Union Boarding, Agriculture and Plantation Workers Union, SPSI PT GPI

Mangun Jaya Estate.


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.

Policy about worker age requirements contained in point 6 in Guidelines for Sustainable Plantation Management (Policy

No. 724/TQM-SPMS/09 date August 27, 2010) determined by the Chief Executive Officer dated April 4, 2010, and point 3

of Memorandum about Child Protection Policy (POD-UM-052/III/2010 dated March 24, 2010), as follows: "Prohibited to

employ underage labor according to statue of labour". In addition, it is also stated in PKB document in the years 2012-

2014 Article 16 related to worker recruitment, paragraph 1.1.2.1.2.2 states that the general requirements that must be

met in enrollment is workers at least 18 years old.

Age of workers recorded in the Employee List, identified by date of birth of each employee and there are no workers

under the age of 18 years. Based on the Employee List in November 2013, the total employees of BYE 351 employees,

MJE 254 workers and POM Rantau Panjang 147 workers .

Available documentation socialization of Memorandum to Employees and employee, staff and PUK SPSI BYE dated

December 17, 2013, Number 451/EM/BYE/XII/2013 regarding the prohibition to children to go work. Socialization was

attended by 50 harvester from Division 1, 20 workers from Dvision 2, 61 workers from Division 3.


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

There were no changes in policy related opportunities and equal treatment of workers - the same as the results of

previous audits . The policy is stated in item 1 Sustainable Plantation Management Guidelines ( Policy No. 724/TQM-

SPMS/09 date 27/08/2010 ) determined by the Chief Executive Officer dated 1/4/2010, as follows : " All the staff /

employees must be treated fair and equitable in term of recruitment , advancement , working conditions and regardless

of race , degree , ethnicity , gender , skin color , imperfection ( disability ) , sexual orientation , membership organizations

, political views , religion , and age " .


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There are carriers planning mechanism to be followed by any personnel in order to be promoted to higher position or a

higher level , through evaluation . There is Records of evaluation for promoted personnel. Nomination made by the

Estate Manager , approved by GM Operations SGM Operation of Sumatra , and verified by GM HRM ( Human

Resources Management ) .

There are examples of employee appraisal in 2013 as follows:

BYE: document proposed increase in class / promotional of employee SKUs PT GPI 2013, a total of 51 proposals, and

approved by 22 workers. For example, on behalf Sukadi / welding machine operator / of class G5 to G6.


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

There were no changes in policy related to sexual harassment and violence against women - same with the results of

previous audits. The policy described in the Social Policy in Guideline of sustainable plantation Management No. B

724/TQEM-SPMS/09 dated 27/08/2010, as stated completely : 'Develop and implement policies to protect workers and

women from the crimes of sexual abuse and protect the rights associated with female reproduction', that is by forming the

Committee of Gender .

There is a Gender Committee in each estate and socialized to employees. Based on interviews with women workers and

the management board gender committee known that women workers had been aware of the existence and function of

the gender committee. Routine activities carried out by the Committee include: weekly lectures and posyandu once in

month.

Available documentation on gender socialization Committee dated November 27, 2013 at BYE office complex and was

attended by 32 participants. There is document of border structure in gender commision, as follows: Patron; Chairman;

secretary; Treasurer, and Members.

Based on absenteeism documents note that the rights of women workers who leave because of feminine reasons /

reproductive rights has been applied by the company. Field interviews with women workers in the maintenance section

BYE and sprayer workerin MJE have known leave entitlements (H1 and H2) .

Available documents BYE employee attendance period from January to November of 2013, for example, to the date of

16 November 2013 on behalf of Dasminilawati / fertilization workers, take one day off and working on behalf of H1:

Winarsih / care workers to take maternity leave start date of December 23, 2013 s / d March 24, 2014. (letter known

known by the midwifein company clinic ).

Mechanism of Employee Complaint described in the SOP of Handling Employee Complaints (SOP-006/GPI/2012 dated

01/12/2012) which describes the sequence of complaints handling, those are : Complaints shall be submitted in writing to

the assistant supervising respectively, recorded by an assistant into the register book , and responded. Based on field

interviews with women workers in BYE and MJE, it is known that during the year 2013 there were no complaints related

to the incidence of sexual harassment of women workers.


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


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Certified FFB sent to POM , comes from 5 supplier Estate. In addition the company also purchases fruit from plasma is

CCS GPI - SJE full managed. In accordance with a cooperative agreement between the company and CCS, the

purchase price of FFB from CCS refers to the FFB price set by the Government District. Musi Banyuasin, as indicated in

copy of the recording pricing decisions by the Government District. Musi Banyuasin and Estate Management Reports of

CCS period of January to December 2013.

The Company also entered into transactions with local business entities for certain jobs such as :

- Payment of local contractors dated 11/10/2013 ( SPK No . 025/SPK-Lokal/BYE/X/203 ) to do any work related to

Empty Fruit Bunch Application . The payment is Rp 44,582,748 . Signed by the contractor and approved by the

manager BYE .

- Payment of local contractors dated 30/11/2013 (SPK No . 005/SPK-Lokal/Angkt TBS-JJK/BYE/VI/2013 ) to

transports FFB. The cost is Rp 44,582,748 . signed by the contractor and approved by the manager BYE .

- Payment of local contractors ( SPK No. 058/SPK-LKL/PT . GPI-RJF/X/2013 ) amounting to Rp 4.78 million Date

30 Oct , 2013, signed by the contractor and Mill manager .

- Payment of local contractors dated 11/02/2013 (SPK No. 136/SPK-LKL/KRE/X/203 ) the cost is Rp 47,730,109

, signed by the contractor and are known by the Manager KRE

- Payment of local contractors dated 26/11/2013 (SPK No . 007/SPK-LKL/MJE/X/2013 ) the cost is Rp 60,289,364

, signed by the contractor and the Estate Manager .

There are examples of payment transactions with local contractors .


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

Company can show records relate to contributes to local governments and communities around the estate in a structured

and has been divided into two categories (taxes and CSR programs). The types of contributions are as an example

below :

- Earth and building Tax Rantau Panjang in 2013 is Rp 1,686,833,560 paid on 12/05/2012.

- Vehicles Tax year 2013 vehicles eg car L-200, It’s Rp 4,771,525 , paid on 10/07/2013.

- Tax of heavy equipment in 2013;

- PPh 21;

- Submission of sacrificial animals to the village dated 12.10.2013 Ulak Paceh (No. 006/NAE/Sumatra/PT.

GPI/Oct/2013 and Napal Village No. 005/NAE/Sumatra/PT. GPI/OCT/2013.

- Delivery of Daily Needs to the Poor, Elderly and Orphan No.. 048/Int/PSD-GPI/VII/2013.

Based on interviews with villagers, the general view in the community surrounding the village (smaple in Karang Rantau

Kasih Ringin II, village and hamlet of Talang Latas) showed relatively good perception to the company. People feel

sufficiently helped by social programs provided by the company.


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.

Not Applicable - no new development outside the area. It is similiar with previous audits (13,961.35 ha).


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

Not Applicable - there is no new development outside the areas that have been cultivated (13961.35 ha).


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.

Not Applicable. There is Identification result of HCV, conducted on January 2010. Those documents ensure none of HCV area counted as planted area. As additional information, there is no new development in statement area of PT. GPI.


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

Not Applicable - there is no new development outside the areas that have been cultivated (13,961.35 ha).


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.



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.

Not Applicable. There is no new land clearing and replanting. For land preparation GPI's policy is not to clear land by burning or non-burning techniques (Reference Manual procedures and guidelines Agronomy point 3.1.b sustainable plantation management No Policy 724/TQEM-SPMS/09 points Policy 5.7.2). PT GPI does not opening new areas to develop.


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.

To make improvements on an ongoing basis, PT. GPI applying the 6-month periodic internal audits conducted by the

Office of Pekan Baru. The report details the results of an internal audit conclusions and opinions of internal auditor and

auditee opinion.

Examples of the results of the last internal audit on June 2012:

- Stacks of empty Fruit Bunch application Block C018 NAE does not match the quantity (less than 3 wheel


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barrows + 250 kg) - was the addition of up to 250 kg.

- There is a demolition of empty fruit so that cover collection road in Block C018 NAE - has been trimmed.

The entire corrective actions documented in the form of a Memorandum Estate Manager. Example, Memorandum

Rantau Panjang Estate Manager (RJE) No. POD-RJE-IA-001/XI/2012 dated November 27, 2012 regards to the follow-up

audit finding that explain detailing issue and corrective action.

PT. GPI also has shown improvement over the results of corrective action of 6 (six) non - conformance and advice issued

by RSPO audit in 2010, consists of: peat land management, OHS program, traditional rights management, management

of hazardous material and hazardous waste, company's contribution to society, and implementation supply chain (chain

traceability).

The results of repair of the two (2) non-comformance (NC # NC # 2011.34 and 2011.36) and 4 (four) OFI (OFI # 2011.05;

OFI # 2011.13; OFI # 2011.33, and OFI # 2011.35) has been followed up on previous audits and it was Closed . All the

evidence has shown improvement actions and verified by auditors Mutuagung Lestari.

The company has demonstrated improvement in OHS monitoring implementation efforts by making Sime Observation

Card.

Company through ESH PSQM Department, have Assessment program that is routinely performed at least 1 time a year.

There are examples of documents ESH Assessment BYE Summary Report dated 4, 5, 6, 13, and December 16, 2013

with 19 findings, for example: shower and eye wash in BSS is not ready for use, and is fixed on December 6, 2013.

Beside that there is an example of improvement in OHS areas through a Memorandum dated December 3, 2013 from

Head PSQM Indonesia Number 013/PSQM-UM/XII/2013 to All GM Mill, Estate, PSQM and others for policy use wedges

on a vehicle that is being stopped in the POM and Estate.

Based on the audit results of S1 RSPO, it was found 1 non - conformance regarding the area of statement that is not in

accordance with the Land Use Title. In the audit S2, estate of PT GPI has to take corection action with clarification

statement area conformance to Land Use Tite area accompanied by supporting legal evidence.



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3.2. Summary of Assessment Report of Supply Chain

Clause (Module D) CPO Mills - Segregation Requirements

1 Documented Procedures

1.1 The facility shall have written procedures and/or work instructions to ensure the implementation of all the elements specified in these requirements. This shall include at minimum the following: a) Complete and up to date procedures covering the implementation of all the elements in these requirements. b) The name of the person having overall responsibility for and authority over the implementation of these requirements

and compliance with all applicable requirements. This person shall be able to demonstrate awareness of the facilities procedures for the implementation of this standard.

a) The Company has SOP Supply Chain Product Segregation System (SOP-027/GPI/2013) Rev. 1 dated January 30, 2013 approved by ESH Manager.

b) Personnel who responsible for these requirements are:

Mill manager keep and maintain all documents and records of raw materials usage, additional materials used in production process and the quality product, shipments.

Assistant Manager makes recapitulation / daily reports.

Laboratory Assistant / PSQM analysis and check quality of raw materials and products in all stages of production process. Supervision delivery and loading

Assissten process control process in mill

Assistant / Sr. Assistant / Logistics Manager control CPO and PKO transport from mill to bulking station.

Marketing Department control sales.


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

Company has a mechanism of FFB acceptance. The driver must show FFB courier letter from each estates and contractors thet describe origin and quantity of FFB. There is SOP palm oil mill approved by Mill Controller in December 2011 include SOP for weighbridge stations, loading ramp, cooking stations, Trippler and Thresher, digester stations, press station, oil station room, Depericarper station, Nut Cracer Station, Kernel Silo, Despatch CPO, Despech Palm Kernel, Boiler House, Power Plant. There is also available laboratory Instruction tests approved by the Senior Manager Mill on 1 April 2011.


2 Purchasing and goods in

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

Company has a mechanism of FFB acceptance. The driver must show FFB courier letter from each estates and contractors thet describe origin and quantity of FFB. There is Dailly and Annual Summary Of Sustainable FFB, CPO and PK (Ton) and , describe production of certified and un certified product

Status:

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

The claims have not exceeded actual production of certified products. Until December 2012, total production of CPO is


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39,683.60 tonnes and PK is 9,129.20 tons. While claims certified products (corresponding certificate No.MUTU-RSPO/017 for CPO is 45.271 Tons CPO and PK is 9,949.67 tons. There is a letter from Head of PSQM Minamas Plantation No. 002/MP/I/2013 dated January 31, 2013 about amendment of Supply Chain Model from Mass Balance turned into Segregation.


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.

Recording and full report can be shown by the company contain of:

Daily Report and Monthly Report describes the CPO production quality, CPO Stock Quality, PK Productions quality, Empty Bunch, oil looses, press and Ripple Mill / Nut Cracer Efficiency.

All recording and reporting has been created and stored. Document storage system such as SAP system (computerized) and hard copy (print out), it stored in manager and document room

Noncompliance CAR-2011.36 stated Closed.


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

Appendix 10.2 SOP Supply Chain Product Segregation System (SOP-027/GPI/2013) All recording and reporting has been created and stored. Document storage system such as SAP system (computerized) and hard copy (print out), it stored in manager and document room


3.3 The facility shall record and balance all receipts of RSPO certified FFB and deliveries of RSPO certified CPO, PKO and palm kernel meal on a three-monthly basis.

Company have Summary of Production and Despach Record for Month, describes data received buah, prosessed, Rainfall, 0il (Produced oil, Extraction Rate, Technical Specification (FFA), process hours, Trough Put, Weith per cage), Kernel (Produced, Extraction Rate, Technical Specification(Moisture, Dirt and shell)), Despatched oil, stock oil, Despatch kernel, Stock kernel dan Ready Stock - update September 2012.


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.

Supply chain model has been shown clearly in documents, for example: Sales Contract No. 00227/GPI/KTR-MKS/LOK/X/2012 dated 24 october 2012


4 Sales and goods out

4.1 The facility shall ensure that all sales invoices issued for RSPO palm oil delivered include the following information: (a) The name and address of the buyer (b) The date on which the invoice was issued (c) A description of the product, including the applicable supply chain model (Segregated) (d) The quantity of the product delivered (e) Reference to related transport documentation

All invoices are issued for RSPO certified products have included the following information (a) Name and address of buyer


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(b) Date of issue invoices; (c) description of product; include supply chain model that applies (Segregation) (d) quantity of shipped products (e) Reference to the relevant transport documentation

Examples of documents: Invoice No. 00323/GPI/XI/2012 inform about: (a) Buyer’s Name PT. Sumber Indah Perkasa, address Plaza BII Towers II LT.30 Jl. MH. Thamrin. Kav 51 22.

Gondangdia, Menteng, Central Jakarta (b) Date of issue invoices: 19 November 2012 (c) Commodities: CPO (Palm Oil In Bulk Crued); Quality: FFA (AS Palmitic): 5.00% max, Moisture and Impurities:

0.50% max; RSPO Certified Segregation. (d) Quantity: 1,500,000 Kg.

Attached document Sales Contract No. 0027/GPI/KTR-MKS/LOK/X/2012 and Delivery Order No. 00231/00227/10/12/L-GPI-

MKS


5 Processing

5.1 The facility shall assure and verify through clear procedures and record keeping that the RSPO certified palm oil is kept segregated from non certified material including during transport and storage and be able to demonstrate that is has taken all reasonable measures to ensure that contamination is avoided. The objective is for 100 % segregated material to be reached. The systems should guarantee the minimum standard of 95 % segregated physical material9; up to 5 % contamination is allowed.

Product Identification and Product traceability in GPI mill (SOP Supply Chain Product Segregation System (SOP-027/GPI/2013). Declaration-6 declare: PT. Guthrie Pecconina Indonesia can separation of products physicaly for uncertified FFB and certified FFB. The separation begin from enter up to storage tank and will not mix with uncertified products more than 5%. So buyers know the products compile with clause 5.1 D at least 95% RSPO certified or uncertified RSPO at all. Production data in Monthly Summary of Sustainable FFB, CPO and Kernel (Jan - Dec 2012) shows Rantau Panjang mill produce FFB certified as many 179,756,043 Kg (97.98%) and 38,869,667 (2.02%) uncertified from KKPA.


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

Production data in Monthly Summary of Sustainable FFB, CPO and Kernel (Jan - Dec 2012) shows Rantau Panjang mill produce FFB certified as many 179,756,043 Kg (97.98%) and 38,869,667 (2.02%) uncertified from KKPA Production Daily reports can trace back until suppliers of certified estates within PT. GPI. Document traceability include: Production Daily Report, Analysis Laboratory Report, FFB Grading Reports, Weight Bridge Slip, FFB courier letter and Afdeling Report.


5.3 In cases where a mill outsources activities to an independent palm kernel crush, the crush still falls under the responsibility of the mill and does not need to be separately certified. The mill has to ensure that:

The crush operator conforms to these requirements for segregation

The crush is covered through a signed and enforceable agreement

in Rantay Panjang mill, Palm oil processing installation to nut cracker, integrated in one line processing and there is kernel oil is processed by independent contractor.


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Cernel sell to another party, for example, PT. SAP (Sinar Alam Permai) according to Sales Contract No. 00074/GPI/KTR-IKS/LOK/X/2012.


6 Training

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

There is records of training for all staff associated with the technical work to support the traceability produst (process, office and laboratory). Staff and employees also had been trained and the records well maintain SCCS Segregation training records on January 29, 2013 was attended by 21 participants (Mill Manager, Senior Assistant, Assistant and administration). There is attendance list, material and photo. The speaker is ESH Manager (Training Lead auditor RSPO No.. 004/SEK.JEN.KAN/01/2011).


7 Claims

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

The product is claimed as RSPO certified by GPI, are only product that compile production process according to the procedure traceability RJF product (the maximum 95% of products certified and non-certified products 5%). PT GPI states all claims against the CPO and PK RSPO certified, in accordance with RSPO Guidelines for Communications and Claims.



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3.3. Conformity Checklist of Certificate and Logo Use

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

√

S-1 PT Guthrie Pecconina Indonesia have approval / permission to use the certificate No MUTU-

RSPO/017


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

√

S-1 The Company does not use logo neither on the product nor off-product in the scope of PT Guthrie

Pecconina Indonesia.


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

√




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

√





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3.4. Summary of RSPO Partial Certification.

Total companies observed (0.5 √Y) Where Y is the total of uncertified RSPO registered company. The Management Unit name : PT Guthrie Pecconina Indonesia (KKPA Sungai Jernih). Date of Observation: 29 January 2013 – 2 February 2013

2.1

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

√

There is evidence of law fulfillment include:

1. Tenure of land compile with UU. 5 year 1960 on Agrarian Principles, namely HGU Certificate

No. 664/2003, 552/2003 for an area of 10139.91 ha.

2. Providing social security such as labour social assurance (Jamsostek) compile with UU No.

3 year 1992.

3. Providing equipment Occupational Safety and Health program (K3) for all employees compile

with UU No.. 1 year 1970.

4. Environmental management document preparation progress (RKL / RPL) compile with UU

no. 23 year 1997.

5. No land clearing by burning compile with UU No.. 18 year 2004.

6. No discrimination against employees compile with UU No. 21 years 1999 - ratification of the

ILO's anti-discrimination stated in Collective Labour Agreement.

7. Allocating some of the area as a protected area compile with Presidential Decree No.. 32

year 1990 and UU No. 41 year 1999 about Forestry. (Identification of HCV by Aksenta in July

2012).

8. Giving wages above the minimum wage.

Corporate compliance to legality of land tenure, the implementation of environmental and social governance, labor protection, as well as the submission of the report to agencies (eg Environment Agency, Government, and the Department of Forestry and Plantations Musi Banyuasin) stated that the GPI is quite obedient and consistent with the rules.


2.2

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

√

Company shown the documents of :

1. location Permit compile with Regent of Musi Banyuasin decree No 262 year 2011

covering area of 4,000 ha

2. location Permit compile with Regent of Musi Banyuasin decree No 0217 year 2011

covering area of 2,000 ha

3. Determination of smallholder as 262 Candidates compile with Regent of Musi Banyuasin

decree No. 0258 year 2010.

4. Cooperation Agreement with KUD Sinar delima No.001/Plasma/GPI-KUD/I/2012 about

development of Oil Palm Plantation with KKPA Partnership (Cooperative Credit Scheme)

5. Plantation business permit (IUP) smallholder based on regent decree No. 0265 of 2010

(Core 800 ha and smallholder 1200 ha in Gajah Mati village, Sungai keruh subdistrict)

and IUP based on regent decree No.. 282/KPTS/IUP/DISBUN/2011 (Core 1600 ha and

smallholders 2400 ha).


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6. Distribution plan had already plots, is waiting approval from village cooperative unit

(KUD) distribute to smallholders

There is statement of the land handover from land owners such as pedestal Business Right and letter of recognition. For example, land handover statement on behalf of Aziz Ali with pedestal Business Rights and letter of recognition dated July 9, 2007 for an area of 2.8 ha approved by Head of Gajah mati Village and a letter of recognition on behalf of Aziz Alifor land area of 2.8 hectares in Gajah Mati Village on February 24, 2008 and registered in Subdistrict Office No.593/126/2009/XII/2008 dated December 3, 2008.


6.3

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

√

There is Consultation and Communication procedures to Community (RSPO/6.2/KKM), Society

Complaint Handling (RSPO/6.3/PKM), Employee Complaints Handling (RSPO/6.5/PKK) and

conflict resolution (RSPO/2.2/PK) . It had socialize to communities around the estate are (1)

Talang Piase Village (May 14, 2011), (2) Talang Ilo III village (May 27, 2011), (3) NAPAL Village

(May 29 20 110) and (4) Karang Ringin Village II (May 26, 2011), (5) Rantau Kasih Village (May

13, 2011). The socialization Record consist of time, place, material, photo and attendees list.

Technical of disputes solution as effective, timely and correct manner describe in mechanism (flow chart) the complaints handling as follow : Complaints from internal / external received by Kasie and note it, then delivered to the manager to make decision or if needed to consult with head department and last made decision. Complaints from workers can solve in two days (counting from the complaint entered into management until realization decision), while society complaints handling is depending on the type of complaints, if the complaint was mild and the facilities available, it can solve more or less three days, but if complaints is significant and need consultation with head office management, approximately one week.


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.

√

Procedures to identify and calculate the compensation for loss of legal or customary rights over

the land covered by procedure (SOP) Conflict Resolution (RSPO/2.2/PK) and have been

socialized

All proof related with conflict resolution is available in form of statement of the land handover from

land owners such as pedestal Business Right and letter of recognition.For example land

handover statement on behalf of Aziz Ali with pedestal Business Rights and letter of recognition

dated July 9, 2007 for an area of 2.8 ha approved by Head of Gajah mati Village and a letter of

recognition on behalf of Aziz Alifor land area of 2.8 hectares in Gajah Mati Village on February

24, 2008 and registered in Subdistrict Office No.593/126/2009/XII/2008 dated December 3, 2008.


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.

√

There is identification of HCV conducted in July 2011 by AKSENTA. These documents ensure


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that no area of HCV is used for development of new KKPA plantations.

Status:

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.

√

Procedures to identify and calculate the compensation for loss of legal or customary rights over

the land covered by procedure (SOP) Conflict Resolution (RSPO/2.2/PK).There is no contents

revisions or mechanisms of compensation calculation. It is similar to previous audits.

There is statement of the land handover from land owners such as pedestal Business Right and

letter of recognition. For example, land handover statement on behalf of Aziz Ali with pedestal

Business Rights and letter of recognition dated July 9, 2007 for an area of 2.8 ha approved by

Head of Gajah mati Village and a letter of recognition on behalf of Aziz Alifor land area of 2.8

hectares in Gajah Mati Village on February 24, 2008 and registered in Subdistrict Office

No.593/126/2009/XII/2008 dated December 3, 2008.

Development of smallholder based on agreement between KUD Sinar delima with PT GPI in

accordance of Cooperation Agreement No.001/Plasma/GPI-KUD/I/2012 about development of Oil

Palm Plantation with KKPA Partnership (Cooperative Credit Scheme). Determination of

smallholder as 262 Candidates compile with Regent of Musi Banyuasin decree No. 0258 year

2010.


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.

√

There is statement of the land handover from land owners (pedestal Business Right and letter of

recognition) that voluntarily agreed. For example, land handover statement on behalf of Aziz Ali

with pedestal Business Rights and letter of recognition dated July 9, 2007 for an area of 2.8 ha

approved by Head of Gajah mati Village and a letter of recognition on behalf of Aziz Alifor land

area of 2.8 hectares in Gajah Mati Village on February 24, 2008 and registered in Subdistrict

Office No.593/126/2009/XII/2008 dated December 3, 2008.



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

3.5.1 Identification of Findings, Corrective Actions and Observations at ST-2 Assessment

CAR No

Ref Std Finding Area Grade Time

Limits Corrective Action Observation Status

Closing Date

2011.

05

4.3. Peat land management does not

specifically describe the

measurement results subsidence peat

soils, although all the results of

measurements water level have been

monitored and managed.

Office

and

Estates

OFI S1 Company must conduct the

management of peat lands

with peat soil subsidence

measurements, although all

the results of

measurements of water

level have been monitored

and managed as an effort

to minimize decreased of

soil surface.

02/02/2013

Total sample for measurements of peat soil

subsidence has considered the broad (25

ha) that refer to SOP.

There are peat depth measurement plan

(March 2013).

Subsidence measurements use 2-inch

PVC also itu use to measure ground water

levels.

Closed 02/02/2013

2011.

13

4.7. Available monitoring data of work

accidents in each estates and mill

every month include the evaluation,

but need to be reviewed the causes of

the occupational injuries and take

preventive action.

Example, occupational accidents in

the BYE on 03/03/2011 the victim

affected by Chisel.

Office;

Estetes

and Mill

CFA S1 The companyhave to

review the results of

monitoring accidents

related to the causes and

take corrective action to

avoid work accidents.

02/02/2013

Recommendations for corrective action to

the Accident Monitoring form is appropriate

to to prevent similar accidents.

Example: Work accident on 19.12.2012,

victim’s name of Asnan - harvesters NAE,

location Block B34, the number of lost

workdays 1 day, cause (struck down by

frond), evaluation (negligent) and

recommendations (set at a safe distance

while put down frond)

Closed 02/02/2013

2011.33 2.3 Management of traditional rights

In warning sign board did not state

Estate OFI S1 It is recommended to state

Musi Banyuasin District

02/02/2013

Information board in riparian area that

Closed 02/02/2013


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CAR No



Closing Date

Musi Banyuasin District regulation

No. 18 year 2005

Regulation No. 18 year

2005 about Lelang Lebak

Lebung on signboard and

placed in the river

controlled by pengemin and

managed by GPI as HCV-5.

controlled by pengemin have included law

No. 18 year 2005.

2011.34 5.3 Hazardous materials and waste

management

The management of hazardous

materials and waste programs are

processing, such

1. Application for Hazardous waste

temporary storage permit, to all

estate (No. 044/GM-GPI/UM-

Ex/IV/11 April 2, 2011).

2. Construction of diesel tank

canopy in KRE.

Estate Mior S1 GPI must ensure the

Hazardous materials and

waste management can

complete on time.

01/02/2013

ESH Manager explained that the request

for Hazardous waste temporary storage

permit for all Estate is discontinued, and

all the waste will be stored in RJF

Based on observation, - diesel tank canopy

have been made.

Closed 02/02/2013

2011.35 6.11 Company,s contributions to

community

Preparing Corporate Social

Responsibility plan have to based on

basic need identification and

participatory, to result the aid and

budget of CSR clearly and focus to

priority

Estate OFI S1 The company's contribution

to society – It is

recommended, the planning

of Corporate Social

Responsibility (CSR) based

on basic needs

identification results and

participatory so will produce

the aid and budget CSR

clearly and focus topriority.

01/02/2013 There is an annual CSR program, divided into four programs are social charity, health charitiy, educational and sports charity, and incidential and sustainable CSR. Realization in 2012 are Blood Donor involving 57 employees, mass circumcision for 90 children in surrounding villages, and KKPA covering 2,211 ha (2 ha per person). Site visits and interviews with community leaders S. Medak village and Air putih Ulu

Closed 01/02/2013


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CAR No



Closing Date

village, the community are quite capable of self, and the assistance has been appropriate.

2011.36 3.1

SCCS

Supply Chain

There are no Identity Preserved,

Segregated or Mass Balance on the

invoice or delivery document CPO

Marketing Mior S1

Companies must ensure

the material category on the

invoice and delivery

document of CPO sales

have been listed.

01/02/2013

invoice and delivery;s document, have

been marked with stampel in according to

category of material (Segregated).

Closed 02/02/2013


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3.5.2 Identification of Findings, Corrective Actions and Observations at S-1 Assessment

CAR No

Ref Std Finding Area Grade Time Limit

s Corrective Action Observation Status

Closing Date

2013.01

RSPO 2.2.1

Land rights. There is a difference of 408.52 ha, between total area of Statement Data Areas (13,961.34 ha) with HGU documents and HGU proposed (13,552.82 ha). GPI did not able to show evidence of BPN measurement results for HGU area in the process and operations map of the HGU area.

Estate and mill

major 60 day

Company must have clear rights (HGU and / or HGU in process) for entire operations area .

13/02/ 2013. Director of Legal (Head Office, Jakarta) stated that areal statement PT GPI is 16,361.34 Ha contain of 13,961.34 Ha (based on Exsa International measurement) and 2,400 ha SJE area (Core of KKPA), while the GPI area according to HGU certificates is 10,139.91 Ha contain of HGU in the process of 1,843.73 Ha and 1,417.99 Ha. President Director of GPI explained that the difference is due to differences of measurement results between PT. Exsa International (consultant) with BPN (National Land Agency). 02/04/ 2013. Company shown the evidence

of progress HGU application such as Map of Land from National Land Agency, South Sumatra Province. No. 36/MB/2009 scale of 1:10,000 dated December 15, 2009 with an area of 988.68 Ha and Map of land No. 37/MUBA/2009 scale of 1:10,000 for mapping an area 814.99 Ha, 15.36Ha, 13.09 Ha and 11.61 Ha (total 855.05 Ha) so the total area has been measured by the BPN is 1,843.73 Ha.

14/04/ 2013 There is also evidence of HGU submission progress for area 1,569.16 hectares, as follow:

Closed With

Observation

14 March 2013


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CAR No

Ref Std Finding Area Grade Time Limit

s Corrective Action Observation Status

Closing Date

The Letter with Number: 123/GPI/UM/PSD/VI/11 about land roving measurement application for area 667.49 ha and Number: 122/GPI/UM/PSD/VI/11 about cadastral measurement application for area 901.69 Ha.

Response from BPN related cadastral measurement application are deposite warrant letter No. 15/SPS/2011 about the cost of measurement for area 667.49 ha and Deposit Warrant No.14/SPS/2011 about the cost of measurement for area of 667.49 ha.

Letter of measurements of charge transfer request for HGU GPI area covering 1,569.18 HA based on GM PSD memorandum No. 057/GPI/PSD.JKT/09.11.

The Company has documents of fixing the boundaries for HGU area covering 1,569.16 hectares (No. 2630/6.16/VIII/2011 and 2631/6.16/VIII/2011).


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3.5.3 Identification of Findings, Corrective Actions and Observations at S-2 Assessment

CAR No



Closing Date

2013.02

Major 2.2.2

Area Legal Boundary Company had installed physically boundary between estate and community land .But there is still legal boundary in form of boundary poles that hasn't been well maintain yet

Estate Major 20/Feb /2014

The Company must show the evidence of demarcated and it has been well maintained

Root of the problem: Monitoring system of boundary poles hasn't been run consistently Problem solving: Company has reinstalled all the broken and lost boundary poles. It was done based on land use title map from Land Nationa Agency , as shown in poles install document no. 57,58, 59, 60,61, 62. Preventive Action: Company showed list of pole inventory and scheduled of poles monitoring for personnel in each estate. Observasion auditor:

Company has demonstrated corrective actions by reinstalling the broken poles and also conducted preventive action through poles monitoring sheet and made regular schedule of poles monitoring for each estate.

Closed 15 February

2014

2013.3

Minor 4.7.2

Periodically Medical Check Up for High Risk workers Refers to periodic monitoring documents for 2nd semester of 2013 and i document of high risk workers identification, compiled by OHS expert. It was found that there is still high risk worker who

Mill & Estate

Minor S-3 Company have to showed evidence of periodic medical check up to high risk workers

Root of the problem : There is a delay in the implementation of periodic health examinations due to lack of coordination between the management units with the physician in company. Problem Solving:

Closed 23 December

2013


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CAR No



Closing Date

haven't got regular medical check up. December 23, 2013. The company conduct periodic medical examinations for all high risk workers on the date of December 20, 2013. it was conducted to 274 higherisk workers in estate and 20 high-risk workers in POM. Preventive Action: Doctors will always coordinate with the company's management unit to implement periodic health examinations in accordance with a predetermined schedule. Observation Auditor: The company showed evidence of second semester examination results in 2013 conducted on November 4 till December 20, 2013 to 274 high risk workers in estate and 20 high-risk workers in POM. So the non – conformance was closed

2013.4

Major 5.1.2

Report of RKL/RPL document of RKL/RPL implementation report for 1st half of 2013 haven't yet include monitoring of erosion rates as requested in the EIA document

Estate Major 60 hari Companies must be able to demonstrate evidence of environmental management and monitoring reports covering all aspects of the document requested by the EIA

Root of the problem: RPL/RKL report hasn't been completely refers to EIA Document Problem solving: On February 10, 2014, the company has shown a corrective action records through the measurement results of erosion rate on December 2013. It was conducted by using a measuring instrument in

Closed 10 February

2014


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SPO – 4006a.5 Page | 58


CAR No



Closing Date

accordance with the standard of environment ministry No. 7 in 2006. The results of these measurements have been included in the RKL-RPL report 2 nd Semester in 2013. It was sent to Environment Agency District. Musi Banyuasin on January 16, 2014. Preventive Action Explanation to person in charge that they should complie RKL/RPL reportsi n accordance with EAI. Observasion auditor: By stating measurement of erosion rate.

CAR No. 2013.04. was closed.

201.5 Minor 6.1.3

Social impacts monitoring report these reports have not included evidence regards to implementation of participatory monitoring of social impacts

Estate

Minor S-3 The Company must show evidence of social impact monitoring report, containing evidence of i participatory monitoring

Root of the problem: Social reports have not included evidence of participatory monitoring of social impacts. Problem Solving: On February 13, 2014, the company has shown a recording of corrective action reports that was RKL / RPL report in second half of 2013. In the report there is already evidence of participatory monitoring of social impacts, one through the help of the community questionnaire. Preventive Action: Explanation to the officer who responsible for monitoring to conduct participatory

Cloused 13 February

2014


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SPO – 4006a.5 Page | 59


CAR No



Closing Date

monitoring of social impact. It should be recorded on the RKL-RPL report in accordance with the EIA. Observasion auditor: The company has shown evidence of community questionnaire as a way of monitoring the social impact in participatory manner. Non - Conformance CAR No. 2013.05. was closed.


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SPO – 4006a.5 Page | 60


3.5.3 Opportunity for Improvement

No Ref Std Descriptions

1 Major 2.2.1 PT GPI can coordinate with relevant agencies to complete process of registration plantation permit No.092/GPI/UM/PSD/IV/2012 to Musi Banyuasin Regent

dated 25 April 2012 for an area of 13,553.63 ha.

2 Minor 4.4.3 PT. GPI needs to ensure repaired sources of leakage in the valve drains water, boiler station, in order to avoid inefficiencies.

3 Major 5.2.2 PT. GPI needs to review the achievement of enrichment activities and rehabilitation in riparian, since the program had been delayed from plan in 2011.

4 Minor 5.4.1 PT GPI have to present the renewable energy utilization efficiency unit "calorie / tons CPO".

5 Minor 5.4.2 PT GPI have to present data efficiency of fuel decrease as a result of financial analysis derived from renewable energy (fiber and shell).

3.5.4 Noteworthy Positive Components

No Ref Std Descriptions

1 The company's commitment to apply the principles of sustainable management of oil palm and show seriousness to maintain RSPO certificates. It has been obtained through the evidence of all the non-conformance corrective actions as issued in the previous audit

2 The company has been providing adequate infrastructure for workers such as health facilities, educational facilities, places of worship, residential facilities, and provide benefits to the surrounding community

Succeed in obtaining “blue” grade in PROPER appraisal , conducted by Environment Ministry, 2008 – 2013


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SPO – 4006a.5 Page | 61


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

Public Issues (Institution/ NGO/Community)

Management Responses Auditor Responses

Agency of Environment, Research and Development District. Musibanyuasin (Head of Preventive Section)

Positive and Negative Impact: PT. GPI already had have good commitments towards environment management, such as 1. Conducted measurement of liquid waste and it's reported in every three months. 2. Hazardous material have been well managed, and reported in every three months 3. Reporting the implementation of RKL/RPL in each semester 4. There is no complaint from community regards to pollutant 5. There is no abnormal grade of environment quality standard 6. Request of information by Agency of Environment, Research and Development

regards to environment. Then it was responded by company quickly.

1. Keep Maintained 2. Keep Maintained 3. Keep Maintained 4. Keep Maintained 5. Keep Maintained 6. Keep Maintained

In general, the Environment Bodies assume PT. GPI has demonstrated compliance with the provisions of laws and regulations. No objection to procceed RSPO Certificate.

Labour and Transmigration Agency, District. Musi Banyuasin (Head of Monitoring Section)

Positive and Negatrive Impact : PT GPI has demonstrated good commiment in term of labour and transmigration, such as :

1. There is no underage worker 2. Company already has OHS Expert. 3. Company has already conducted training regards to workers competence, such

as First aid training for OHS personnel 4. Regional Minimum Wages is Rp 1,630,000,-, Meanwhile the company

determined Wages Rp 1,510,000,- + 15 Kg of Rice as fix allowances for personnel (based on agreement between workers union and company).

5. Company hasn't reported Boarding of Cooperative Bipartite Institution to Labor and Transmigration Agency.

6. Company has checked POM equipment but hasn't check estate equipment yet. Suggestion: Agency of Labor and Transmigration suggested company to reported agreement between company and workers union relate to worker wages

1. Keep Maintained 2. Keep Maintained 3. Keep Maintained 4. Company has determined workers wages based on Minimum Regional Wages and lack of fix allowance payment (Rice Allowance) for workers who do not come to work. It will retroactive per January 2013 and realized at the end of December 2013. 5. Estate Management coordinate with HRM in order to issue assignment letter from director 6. Compressor have got permit, and there will be medical check up for generator operator Suggestion will be responded immediately

In general, Labour and transmigration agency assume PT. GPI has demonstrated compliance with the provisions of laws and regulations. No objection to procceed RSPO Certificate. Regards to suggestion from agency, company should immediately reported Boarding of Cooperative Bipartite Institution.


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SPO – 4006a.5 Page | 62




Plantation Agency, District, Musi Banyuasin (Head of Plantation Inventory Section)

PT. GPI had have commitment regards to plantations, such as : 1. Plantation Development has been reported regularly 2. There is no land conflict with community in 2013. 3. Management already has CCS

1. Keep Maintained 2. Keep Maintained 3. Keep Maintained

In general, Plantation agency PT. GPI has demonstrated compliance with the provisions of laws and regulations. No objection to procceed RSPO Certificate.

Karang Ringin II Village, Subdistrict. Lawang Wetan, District. Musi banyuasin (Intervie with Head of Village ):

Positive and Negatrive Impact : 1. In General, community in Karang Ringin II Village have a good perception to

company. By the existence of company , road is in better condition , and generate the level of community welfare

2. Company has conducted CSR program, such as road repairment, massal circumcision, and sacrificial animal.

3. There is no land conflict with community 4. Socialization has been conducted, such as: 1). Community complaint,

communication, conflict. 2) Socialization of prohibition to hunt protected animal and land burning.

Aspiration

Supposed that company could build kindergarten, mosque, and contributions in traditional events.

Head of Village feels that it's hard for villagers to work in that company.

1. Keep Maintained 2. Keep Maintained 3. Keep Maintained 4. Keep Maintained

Aspirations :

Kindergarten has been built in Rantau Kasih Village on November 28, 2013.

Most of personnel are local community. Company willing to communicate with village leaders

Company should improve communication quality with community and consistently monitored the social impact. It should be really noticed by the company.

Rantau Kasih Village, SubDistrict. Lawang Wetan, District. Musi banyuasin (Interview with Community Leaders):

Positive and Negative Impact : 1. In General, community in Rantau Kasih Village have a good perception to

company. 2. Company has conducted CSR program, such as road repairment, massal

circumcision, sacrificial animal. 3. There is no land conflict with community

Socialization has been conducted, such as : 1). Community complaint, communication, conflict. 2) Socialization of prohibition to hunt protected animal and land burning.


In general, the Community of Rantau Kasih Village assume PT. GPI has demonstrated compliance with the provisions of laws and regulations. No objection to procceed RSPO Certificate.


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SPO – 4006a.5 Page | 63




Talang Latas Hamlet, Bumi Ayu Village, District. Musi banyuasin (Interview with Community Leaders):

Positive and Negative Impact : 1. In General, community in Rantau Kasih Village have a good perception to

company. 2. Company has conducted CSR program, such as road repairmen, circumcision,

sacrificial animal.

3. There is no land conflict with community Socialization has been conducted, such as: 1). Community complaint, communication, conflict. 2) Socialization of prohibition to hunt protected animal and land burning.


In general, the Community of Rantau Kasih Village assume PT. GPI has demonstrated compliance with the provisions of laws and regulations. No objection to procceed RSPO Certificate.

Head of Indonesia Workers Union MJE, Bapak Efran Hanson (December 18, 2013)

1. On June 19, 2013, there was an agreement between PT. GPI and Workers Union to established Cooperative Bipartite Institution. Due to new structure of boarding in Indonesia Workers Union, That Union hasn't appointed representative in Cooperative Bipartite Institution.

2. Company hasn’t meet the agreement Dated June 30, 2013 relate to rice allowance as fix allowance. Till now, ther will be reduction of rice allowance for workers who do not come to work without any notification.

1. Estate Managemnet coordinate with HRM in order to issue letter of assignmet from director

2. Company has determined workers wages based on Minimum Regional Wages and lack of fix allowance payment (Rice Allowance) for workers who do not come to work. It will retroactive per January 2013 and realized at the end of December 2013.

Auditor has verified the problem and there is aggrement between company and Indonesia Worker Union to realized the agreement

NGO Sawit Watch and Walhi emailed NGO named Sawit Watch and Walhi on December 11, 2013, but there is still no response until now


ASSESSMENT REPORT

SPO – 4006a.5 Page 64 Prepared by Mutuagung Lestari for PT Guthrie Pecconina Indonesia – Rantau Panjang POM

4.0 CERTIFIED ORGANISATION'S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Sign-off of Assessment Findings

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

Signed on behalf of:

PT Guthrie Pecconina Indonesia

Mutuagung Lestari

Head of PSQM of Minamas Plantation SIME DARBY

Lead Auditor

Mohamad Pirabaharan

Bukti Bagja

Thursday, 20 Febuary 2014

Monday, 17 Febuary 2014


ASSESSMENT REPORT


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

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

Date of Contact

1. Environment Agency of Musi Banyuasin

Jalan Kolonel Wahid Udin, Subdistrict of Sekayu, South Sumatera.

0714-321486 Direct Consultation

13 December 2013

2. Labour and Transmigration Agency of Musi Banyuasin

Jalan Kolonel Wahid Udin, Subdistrict of Sekayu, South Sumatera.

0714-321322 Direct Consultation

13 December 2013

3 Plantation Agency of Musi Banyuasin

Direct Consultation

13 December 2013

4 Karang Ringin 2 Village Karang Ringin Village, Subdistrict of Lawang Wetan, District of Musibanyuasin

Direct Consultation

12 Desember 2013

5 Rantau Kasih Village Karang Ringin Village, Subdistrict of Lawang Wetan, District of Musibanyuasin

Direct Consultation

12 Desember 2013

6. Talang Latas Village Bumi Ayu Village, District of Musibanyuasin

- Direct Consultation

12 Desember 2013

7. Head of SPSI MJE - - Direct Consultation

12 Desember 2013

8 Sawit Watch and Walhi Bogor & Jakarta - Email 11 Desember 2013


ASSESSMENT REPORT


DATE / TANGGAL 16 – 20 December 2013

PLANNED TIME RENCANA WAKTU

ACTUAL DURATION DURASI AKTUAL

PROCESSES / CLAUSES TO BE AUDITED PROSES / HAL YANG DIAUDIT

AUDITOR

Monday/Senin, 16 December 2013

06.00 - 08.00 08.00 – 12.00

14.00 – 14.00

14.30 – 17.00

06.00 - 08.00 08.00 – 12.00

14.00 – 14.00

14.30 – 17.00

Jakarta - Palembang Palembang – PT.GPI Opening Meeting Document Review and Review of Previous Visit Non-conformance (surveillance-1 and Stage-2)

BB / MES / RR / SHL

BB / MES / RR / SHL

Tuesday/Selasa, 17 December 2013

08.00 – 12.00

08.00 – 12.00

14.00 – 17.00

08.00 – 12.00

08.00 – 12.00

14.00 – 17.00

Stakeholders consultation to Related Government Institution (Musi Banyuasin District Government and local NGO)

Field Observation: Bumi Ayu Estate

Legal operational and Conservation Area

Manuring, Spraying, Harvesting, best agricultural practices

Worker facilities (housing, health clinic, clean water, etc)

Land Fire facilities, Storage, ect..

Continue Field Observation

BB / SHL

MES / RR

BB / MES / RR / SHL

Wednesday/Rabu, 18 December 2013

08.00 – 12.00

08.00 – 12.00

Stakeholders consultation to Nearest village andd community leader

Field Observation: Mangun Jaya Estate

Legal operational and Conservation Area

Manuring, Spraying, Harvesting, best agricultural practices

Worker facilities (housing, health clinic, clean water, etc)

Land Fire facilities, Storage, ect..

BB / SHL

MES / RR

12.00 – 14.00 12.00 – 14.00 BREAK

14.00– 17.00 14.00 – 17.00 Continue Field Observation Continue checklist

BB / SHL / MES / RR

Thursday/Kamis, 19 December 2013

08.00 – 17.00 08.00 – 17.00 Stakeholders consultation to Nearest village andd community leader

Rantau Panjang POM : WWTP (IPAL), Operational, K3

(OHS), Supply Chain

MES / RR

BB / SHL

12.00 – 14.00 12.00 – 14.00 BREAK

14.00– 17.00 14.00 – 17.00 Field Observation Verification audit finding preparation

BB / SHL / MES / RR

Friday/Jumat, 20 December 2013

11.00 – 13.00 08.00 – 10.30 10.00 – 17.00 19.00 – ……

Closing Meeting

PT.GPI Palembang

Palembang Jakarta

BB / SHL / MES / RR

Appendix 2. Assessment Program


ASSESSMENT REPORT


Appendix 3. Glossary

AMDAL : Analisis Dampak Lingkungan (Social and Environmental Inpact Assesment)

APD : Alat Pelindung diri (Personal Protection Equipment)

APAR : Alat Pemadam Api Ringan

BAPEDALDA : Badan Penanggulangan Dampak Lingkungan Daerah

BBM : Bahan Bakar Minyak

BLH : Badan Lingkungan Hidup (Environmental Agency)

BOD : Biological Oxygen Demand

BPN : Badan Pertanahan Nasional (National Land Agency)

BSS : Blok Spraying Sistem

BYE : Bumi Ayu Estate

CITES : Confention On International Trade Endanger Species

COD : Chemical Oxygen Demand

CPO : Crude Palm Oil

CSR/CD : Corporate Social Responsibility/ Community Development

HCV/NKT : High Conservation Value / Nilai Konservasi Tinggi

HGU : Hak Guna Usaha (Land Use Permit)

HIRAC : Hazard Identification Risk Assessment Control

IPAL/WWTP : Instalansi Pengelolaan Air Limmbah (Wastewater treatment Plantation)

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

K3 : Kesehatan dan Keselamatan Kerja (Occupational Health and Safety)

KAN : Komite Akreditasi Nasional (National Agreditation Committee)

KRE : Karang Ringin Estate

LC : Land Clearing

LD50 : Lethal Dosage (Dosis tertentu yang dapat membunuh 50% dari jumlah populasi)

LSM : Lembaga Swadaya Masyarakat

MSDS : Material Safety Data Sheet

NAE : Napal Estate

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

NAE : Napal Estate

P3K : Pertolongan Pertama Pada Kecelakaan

PBB : Pajak Bumi dan Bangunan

Permentan : Peraturan Menteri Pertanian

PHT : Pengendalian Hama Terpadu

PK : Palm Kernel

PKB : Perjanjian Kerja Bersama

PKS : Pabrik Kelapa Sawit (Palm Oil Mill)

POME : Palm Oil Mill Effluent


ASSESSMENT REPORT


PP : Peraturan Pemerintah

PSD : Plantation Service departement

PUK : Pimpinan Unit Kerja

PSQM : Plantation Sustainablity Quality Management

RJE : Rantau Panjang Estate

RJF : Rantau Panjang Factory

RKL : Rencana Kelola Lingkungan (Environmental Managenem Plan)

RPL : Rencana Pemantauan Lingkungan (Environmen Monitoring Plan)

RSPO P&C : Roundtable on Sustainable Palm Oil Principle and Criterion

S1 : Survaillance 1

S2 : Survaillance 2

S3 : Survaillance 3

S4 : Survaillance 4

SKU : Satuan kerja Usaha

SOP : Standar Oprasional Prosedur

SPSI : Serikat Pekerja seluruh Indonesia

ST1 : Stage 1 (Pre-Assesssment)

ST2 : Stage 2 (Main Assesssment)

TBS : Tandan Buah Segar (Fresh Fruit Bunches)

UMR : Upah Minimum Regional

UU : Undang – Undang

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