[ ]stage 1 stage2 [ ]surveillance assessment report ...ecological and social specialist. he was...

PT MUTUAGUNG LESTARI

ASSESSEMENT REPORT

Sustainable Palm Oil Certification

[ ]Stage 1 [√]Stage2 [ ]Surveillance Assessment Report

Plantation Manager/Owner

:

MINAMAS Plantation - SIME DARBY Group

Plantation Name : PT Guthrie Pecconina Indonesia

Region and Country : Sub District of Babat Toman

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 16th, 2017

Assessment

date

Report finalization

date

PT Mutuagung Lestari

Auditor Checked by Approved by

ST1 25-29/04/2011 04/05/2011

Taufik Margani; Doni; Marsudi Eko

Santoso

Tony

Arifiarachman

Tony

Arifiarachman

ST2 20-25/06/2011 08/09/2011

Deni A. Novendi; Doni; Marsudi Eko

Santoso

Reny

Rustianingsih

Tony

Arifiarachman

S1

S2

S3

S4

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

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

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

MUTU Certification • Approved by RSPO Secretariat on June 2008

Submitted to RSPO on: Reviewed by RSPO on: CB Responds on: Approved by RSPO on:

02/16/2012 02/24/2012 03/05/2012 03/14/2012

http://www.mutucertification.com/


ASSESSEMENT REPORT

SPO – 4006a.3 i Prepared by Mutuagung Lestari forGuthrie Pecconina Indonesia

TABLE OF CONTENT

FIGURE

Location Map of

Operational Map of

1

2

1.0 SCOPE of the CERTIFICATION ASSESSMENT

1.1 National Interpretation Used 3

1.2 Organization Information 3

1.3 Type of Assessment 3

1.4 Location of Plantations, Mill and Hectare Statement 3

1.5 Description of Supply Base 5

1.6 Dates of Plantings and Cycles 5

1.7 Approximate 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 Lead Auditor and Auditor Team 8

2.3 Assessment Methodology, Progress, and Site Visit 8

2.4 Stakeholder Consultation and List of Stakeholder Contacted 11

2.5 Determining Next Visit 11

3.0 ASSESSMENT RESULT

3.1

3.2

Summary of Assessment Report of the RSPO Certification

Summary of Assessment Report of Supply Chain Requirement

12

36

3.3 Checklist Conformity of Certificate and Logo Use 41

3.4 Summary of Time Bound Plan Verification of the RSPO Certification 42

3.5 Summary of Non Conformance, Correction Action Required, Observation and Noteworthy

Positive Components

43

3.6 Summary of Arising Issues from Public, Organization and Auditor Response 61

4.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Sign-off of Assessment Findings 64

ANNEXES

1. Peer Review Report 65

2. Result of RSPO Committee - RSPO Certification 66

3. List of Stakeholder Contacted in the RSPO Certification Process 67

4. Glossary 71


ASSESSEMENT REPORT

SPO – 4006a.3 Page 1 Prepared by Mutuagung Lestari forGuthrie Pecconina Indonesia

Figure 1. Map of Location PT Guthrie Pecconina Indonesia

PT. GPI


ASSESSEMENT REPORT

SPO – 4006a.3 Page 2 Prepared by Mutuagung Lestari forGuthrie Pecconina Indonesia

Figure 2. Operational Map PT Guthrie Pecconina Indonesia

NAE

MJE

KRE

BYE RJE

POM


ASSESSEMENT REPORT

SPO – 4006a.3 Page 3 Prepared by Mutuagung Lestari for Guthrie Pecconina Indonesia

1.0 CERTIFICATION SCOPE

1.1 National Interpretation Used National Interpretation, Principles and Criteria of RSPO

for Sustainable Palm Oil Production, Republic of

Indonesia - RSPO INA-NIWG, May 2008 and Supply

Chain Certification System.

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 The Plaza Lt. 36

Jl MH Thamrin Kav. 28-30

Jakarta 10350

1.2.4 Tel +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 Private

1.2.9 Management Representative who completed the application for

certification

Mohamad Pirabaharan

(Head of PSQM Minamas Plantation)

1.2.10 Date of Being Registered as RSPO member 08 December 2004

1.2.11 Number of employee

1.2.12 Contractor/Community/other workers 2.122 People

Contractors 49 People

Daily Freelancers -

1.3 Type of Assessment

1.3.1 Scope of Assessment Palm Oil Mill and Estate

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 Plantations, Mill and Hectarage Statement

1.4.1 Location of estate

Estate(s) 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' 3.28" - 20 57' 0.61"

S

1030 42' 9.95" - 1030 47'

17.02"E

mailto:[email protected]

http://www.simedarby.com/


ASSESSEMENT REPORT


Bumi Ayu

Estate

Village of Bumi Ayu, Sub District of Babat


of South Sumatera

20 50' 35.35" - 20 55'

2.39" S

1030 38' 16.79" - 1030 42'

25.42"E

Karang Ringin

Estate

Village of Karang Ringin II, Sub district of

Babat Toman, District of Musi Banyuasin,

Province of South Sumatera

20 46' 2.88" - 20 49'

46.84" S

1030 35' 53.18" - 1030 39'

21.38"E

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

District of Musi Banyuasin, Province of South

Sumatera

20 49' 25.41" - 20 52'

27.88" S

1030 37' 36.33" - 1030 41'

16.48"E

Mangun Jaya

Estate

Village of Mangun Jaya, Sub District of Babat


of South Sumatera

20 48' 55.6" - 20 53'

54.65" S

1030 33' 21.96" - 1030 38'

10.54"E

1.4.2 Location of Mill

Mill Location

GPS

Latitude Longitude

Rantau Panjang

POM

Village of Rantau Panjang, District of

Babat Toman, District of Musi Banyuasin,

Province of South Sumatera

020 54’59” S

103044’52.17” E

1.4.3 Maps Figure 1 & Figure 2

1.4.4 Country Indonesia

1.4.5 Region South East Asia

1.4.6 Village/Sub Regency/Regency/Province Village of Rantau Panjang, Karang Anyar, Bumi Ayu,

Napal, Rantau Kasih, Karang Ringin II and Mangun

Jaya / Sub District of Babat Toman / District of Musi

Banyuasin / Province of South Sumatera.

1.4.7 Tenure

Private -

State 10.139,91 ha (HGU Certificate No. 664/2003, 552/2003)

1.570 ha (HGU is in process, application Letter to BPN

No. 122/GPI/UM/PSD/VI/2011 and

123/GPI/UM/PSD/VI/2011)

1.843 ha (HGU is in process, application Letter to BPN

No. 004/GPI/UM/PSD/II/10)

Unplantable are : 408.445 ha

Community -

1.4.8 Hectarage Statement

Total area 13,961.355 Ha

Mature area 9,657.70 Ha

Immature area 881.09 Ha

Mill 12.88 Ha


ASSESSEMENT REPORT


Infrastructure 339.81 Ha

Land Clearing 679.25 Ha

Occupation 1,927.24 Ha

HCV 55.38 Ha

Unplantable area 408.445 Ha

1.5 Description of Supply Base

1.5.1 Estate(s)

Estate(s) Total Area

(Ha)

Planted Area

(Ha)

FFB

(ton/year)

Yield

(ton/year)

% Supplied to

Mill

Rantau Panjang Estate 3,388.26 3,136.60 54,079.41 17.24 30.45

Bumi Ayu Estate 2,476.96 2,400.24 43,825.11 18.25 24.68

Karang Ringin Estate 2,066.95 1,922.12

34,441.47 17.91 19.40

Napal Estate 2,182.25 1,687.90 24,632.38 14.59 13.87

Mangun Jaya Estate 1,557.47 1,391.92

20,576.03 14.78 11.59

Total 11,671.89 10,538.78 177,554.40

1.5.2 Smallholder(s) and others

Smallholder(s) Number of

Member(s)

Location Total Area

(Ha)

FFB

(ton/year)

% Supplied to

Mill

- - - - - -

1.5.3 Description of Mill

Mill

Capacity

(tones/ hour)

CPO (ton) PK (ton) PKO (ton)

Out put OER Out put OER Out put OER

Rantau Panjang

POM

80 40,393.626

22.75 % 8,877.72

5 % - -

1.5.4 Product categories FFB/CPO/PK

1.5.5 Annual Yield – Average (Period 2005-2010) 13.6 Tonnes/Ha/Year

1.5.5 Annual Yield - Actual 16.55 Tonnes/Ha/Year

1.6 Dates of Plantings and Cycles

1.6.1 Age profile of planted palms*


ASSESSEMENT REPORT


Planting Year Hectarage (hectares) Age (year)

1998 2,486.01 13

1999 3,276.36 12

2000 2,003.14 11

2001 894.12 10

2002 517.26 9

2003 180.55 8

2004 132.11 7

2005 168.13 6

2006 541 5

2007 153.41 4

2008 185.97 3

Total 10,538.06

Average Year 10.86

1.6.2 Area planting after 2005 - Ha

1.6.3 New planting area after November 2005 – extension

- Ha

1.6.4 Cycle

7-9 Days

1.7 Approximate Tonnage Certified

1.7.1 Production recovery of FFB 22.75 %

1.7.2 Production recovery of Palm Kernel 5 %

1.7.3 FFB 198,993.44 Tonnes/Year

1.7.4 Crude Palm Oil 45,271 Tonnes/Year

1.7.5 Palm Kernel 9,949.67 Tonnes/Year

1.8 Other Certifications

1.9.1 ISO 9001:2008/ISO 14001: 2004 None

1.9.2 OHSAS 18001:2007 None

1.9.3 HACCP None

1.9.4 Others Zero Accident certificate from RI Department of Labor (No. Kep

82/Men/V/2010.tanggal 4/5/2010)

1.9 Time Bound Plan for Other Management Units

Time bound plan for other Management Units of MINAMAS PLANTATION - SIME DARBY Group per December 2011

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.


ASSESSEMENT REPORT


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

Audited 0 5 3rd party audit or external audit completed on July 2011.

Total SOUs 39 24


ASSESSEMENT REPORT


2.0 ASSESSMENT PROCESS

2.1 Certification Body

PT Mutuagung Lestari

Jl. Raya Bogor Km 33,5 No. 19

Cimanggis - Depok 16953

Telp. +62-21-8740202

Fax +62-21-87740745/46

Website: www.mutucertification.com

Email : [email protected]

2.2 Lead Auditor and Auditor Team

2.2.1 Assessment Team

ST2 1) Deni A. Novendi (Lead auditor). A Bachelor of Forestry Science Majoring in Natural Resources Conservation.

Ecological and Social Specialist. He was involved in socio-economic study of River Basin community - Citanduy -

Cisanggarung in Ciamis District, West Java, and has over 13 years experience in the field of Planning and

Conservation of Forests on forest concessions in Indonesia. Since 2003, he has been working for an Independent

Certification Institute as an Auditor of Forest Management Certification System (FSC and LEI systems); Chain of

Custody, ISO 9001, and the RSPO. He has also conducted several audits for each of these certification systems. In

this assessment he assessed on environmental, legal compliance, and OHS (Occupational Health and Safety)

aspects.

2) Doni (Auditor). Master of Rural Sociology. Have been following the certification of Sustainable Production Forest

Management (SFM) from Indonesia Ecolabel Institute (LEI) in 2008 and Training Up-Grading of SFM in the

Gunung Batu Training Center Bogor in 2010. Since 2003 he has been conducting several audit certifications of

SFM in some companies. he has free lance job in The Nasional Development Planning Body, Ministry of

Acceleration Development Backward Regions (KPDT) and the Ministry of Public Works as the evaluation team

since 2005 till now. In 2006-2007 he worked in JICA and UN-HABITAT, UNDP. In this Stage 2 Assessment

activities he assessed on employment and social aspects.

3) Marsudi Eko Santoso (Auditor Under trainee), A Bachelor of Agricultural Science Majoring in Agro-technology.

He had attended auditor training for ISO 9001-2008 System Management certification, HACCP certification, RSPO

certification system understanding and RSPO Lead Auditor Training. He was also involved in RSPO assessment in

several companies as an observer. Currently he has been working in an independent Certification Body. In this

assessment process, he assessed on Best Practices, IPM, OHS (Occupational Health and Safety) aspects.

2.3 Assessment Methodology, Progress, and Site Visit

2.3.1 Assessment Dates

ST2 20 – 25 Juni 2011

2.3.2 Estimate of person days to implement assessment

ST2 Number of participated auditors: 3 persons

Number of days for on-site assessment activity: 6 days

Number of person-days for on-site assessment activity: 18 day

http://www.mutucertification.com/


ASSESSEMENT REPORT


2.3.3 Detail process of assessment

ST2 Stage-2 (Main assessment) aimed at measuring the achievement reached by the company (PT GPI) in implementing

the requirements of the National Interpretation of the Republic of Indonesia from the Principles and Criteria (P&C) of

RSPO for the Sustainable Palm Oil Production (RSPO INA-NIWG, May 2008).

The assessment was conducted in three methods, i.e.: (1) document review, to assess the adequacy of the type and

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

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

the data of review result and information specified in the document.

A number of improvement recommendations as a result of the Stage-2 activities were submitted by auditors of MUTU to

PT GPI management unit, and the improvement results would be taken as verification for the Surveillance (S-1). All

information obtained were recorded in the Checklist of PT Mutuagung Lestari and become the main attachment to the

Assessment Report. In detail, the second stage assessment process is as follows:

June 20, 2011. In the morning the team traveled from Jakarta to the location. In the afternoon the team conducted

the opening meeting in the RJE Meeting Room, which was attended by GM of PT GPI, head of SOU 22 (Manager of

RJE), Manager of KRE, Manager of NAE, Manager of BYE, Manager of KRE, and Manager of MJE, Manager of

PSQM, Manager of Research, Senior Assistant of PSQM, Senior Assistant of MJE, Senior Assistant of KRE, Senior

Assistant of BYE, RJE Senior Assistant, Senior Assistant of NAE, Field Assistant, Head of Administration, and other

related personnel. Then documents review was conducted.

Auditors focused on doing a review of documents concerning the legality, documentation of environmental

governance, social governance documentation, and documentation practices plantations. The auditors were divided

into three groups based on aspects of assessment as follows:

Team I (Deni): reviewing related aspects of soil and water conservation; practices to maintain and improve soil

fertility; the management of HCV; environmental management, Occupational Safety and Health.

Team II (Doni): reviewing related to the legality of land tenure; management of social environments, and

employment.

Tim III (Eko): reviewing related to employment; reviewing related to the implementation of OSH; soil and water

conservation; Best Agriculture practices and Integrated Pest Management.

June 21, 2011. The auditors’ team continued documents review activities.

June 22, 2011. In the morning the team conducted public consultation where stakeholders are asked to give their views and opinions as to whether the applicant’s certification units comply with the requirements of the applicable National Interpretation. Public consultation was conducted in two ways in which the team was divided into 2 groups. Group I (Deni) visited and consulted stakeholders directly to the district level. While Group II (Doni and Eko) conducted a public consultation in the Atlit Sekayu homestead in a meeting with a stakeholders of sub district and village level. In the afternoon, team auditors joined to verify to the company related the results of public consultation. The results of the verification regarding to the public consultation and document review, then determined the location for site visits.

June 23, 2011. Field visits. The visits was conducted at locations that were considered critical issues related to

environmental, social, employment, and best practices in the estates and mill based on the results of verification issues

from stakeholders and the results of document review. At the site visits, team was divided into 2 groups. Group I (Deni)

conducted field visits to sites of estates and Mill to take a look the field conditions related to the aspects of best practices

for estate and mill employment and the environment. While Group II (Doni and Eko) conducted field visits to the estates

and around the villages to take a look at the field conditions of social aspects including following up verification result

to the company related to the results of public consultation and environmental aspects.


ASSESSEMENT REPORT


June 24, 2011. In the morning, the team conducted further verification relating to the document review and field visits

followed by a discussion relating to the assessment results to determine the nonconformity results of the assessment

findings.

In the afternoon, closing meeting was conducted in RJE Meeting Room, which was attended by GM of PT GPI, head

of SOU 22 (Manager of RJE), Manager of KRE, Manager of NAE, Manager of BYE, Manager of KRF and Manager of

MJE, Manager of PSQM, Manager of Research, Senior Assistant of PSQM, Senior Assistant of MJE, Senior Assistant

of KRE, Senior Assistant of BYE, Senior Assistant of RJE, Senior Assistant of NAE, Field Assistant, Head of

Administration and other related personnel. In the Closing Meeting, the audit team presented the tentative audit

findings allowing the management unit to have RSPO certification as no major non conformance is found. The final

report will be prepared by the audit team and reviewed by internal reviewers and RSPO’s reviewers. Based on the

reviewers’ review results, especially reviewers of RSPO including auditor recommendations, the RSPO Certification

Committee would decide whether the RSPO certificate would be issued or not.

June 25, 2011. The audit team traveled to Jakarta.

2.3.4 Location of Assessment

ST2 Location 1 - village of Rantau Panjang: Interviewing Head of Village and Pengemin (The person allowed to manage

the river). The interview related to the traditional rights over the management of the river; impact of company operations

on the river.

Location 2 - Sub district of Lawang Wetan: Interviewing the secretary of the head district regarding the existence

of auction of the river; known companies using river water and has paid taxes of water usage.

Location 3 - Block A 002 of RJE: Observations and visits in the riparian zone of Piase river which was indicated had

been cleared by the company. Based on the results of site visits, the riparian zone of Piase river was the riparian

shrubs.

Location 4 - Block O54 of KRE: Observations in the company’s area bordered with community’s rice fields. Based

on this observation, it was known that the company built a 2-3 meter-high embankment and drainage channels to

prevent flooding in the area, it was done because that area was close to the Musi river. While the community seemed

has no drainage water channels in their rice fields thus it had a tendency to be flood-prone area.

Location 5 - Block E60 of MJE: Observations and interviews with traditional oil miners on the management of

traditional mines in the area of the company.

Location 6 - Home of Rantau Kasih Villagers (Mr. Kemis): Interview with villagers (Mr. Kemis) regarding the

history of the existence and management of traditional oil mining area. It was known that if the land had been agreed

to be submitted to the company for damages, however wells of oil refineries still owned by the villagers.

Location 7 - Hazardous Waste and Non Hazardous Material Warehouse of Napal Estate: Observations and

interview regarding the storage and management, waste of hazardous and non hazardous material, including the

feasibility of Hazardous material waste storage, waste monitoring records, the application of symbols hazardous

material waste, MSDS, and prevention of direct contamination to the environment (waste storage building watertight

and equipped reservoirs).

Location 8 - Block Q57 of KRE: Observations and interviews about the peat land management performed, including

monitoring of water level and peat soil subsidence.

Location 9 - River Senaro of KRE: Water River Senaro taken as an example for testing water quality inlet and

outlet.

Location 10 - The Pingei river (R Block 49 of RJE): The application observation of water gate to water level

management.


ASSESSEMENT REPORT


Location 11 – Block L24 BYE: Observations and interviews with foreman and employees regarding the OSH

implementation to personnel of chemicals users, chemical usage, and routine health checks.

Location 12 – Rantau Panjang POM. Observation and interview with employees was done concerning the practices

of FFB processing, OSH implementation, liquid and solid waste treatment, temporary warehouse for B3 waste, swift

emergency response, etc.

2.4 Stakeholder Consultation and List of Stakeholders Contacted

2.4.1 A meeting with several stakeholders in the district was conducted directly by visiting & consulting directly and having

public consultation with local stakeholders (village and sub district level). This was done by a meeting in Wisma Atlit

Sekayu.

2.4.2 List of stakeholder contacted

See Annex 3

2.5 Determining Next Visiting

The time of the next activity (Surveillance) will be determined after this report has been approved by RSPO secretariat

and / or 12 months after the certificate is issued.


ASSESSEMENT REPORT


3.0 ASSESSMENT RESULT

3.1 Summary of Assessment Report of the RSPO Certification

Ref Std. VERIFICATION RESULT of MUTU-Certification

PRINCIPLE #1 COMMITMENT TO TRANSPARENCY

1.1

Plantation and Palm Oil Factory have to give adequate information for stakeholders in appropriate language and

forms, to ensure the effective participation of stakeholders in decision-making.

The Company has recorded a record of information from the stakeholders. The records are available for all estates, including

palm oil mills in the form of log book which identifies information related to the parties i.e.: the date, name / external agencies,

the response, the met parties, completion date, status, description.

Here are some examples of recordings of incoming mail from related parties:

1. Bumi Ayu Estate (BYE); requested for examination and counting the number of bunches of oil palm FFB, Action taken: the

examination and counting bunches by the authorized officer, dated 06/04/2010

2. Napal Estate (NAE): requested for help of transporting the bridge material, village of Karang Ringin I, dated on June 16,

2010

Companies responded all information requests. The form of these responses can be either a pro Postal or a letter that goes into the Company which was then reviewed by the leadership (Manager) to take a decision. In some cases, managers discuss with the foreman to explore the determination to take the decision. All requests from the public submitted to the Company while the realizations of the responses are stored in a Log book file of outgoing mail.

Log book file of incoming mail and outgoing mail are stored with a shelf life of 5 years, at the end of the storage of personal

authority (Head of Administration) will review the expiry and if necessary provide advice on methods destruction of records or

stored in a 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.

Company’s documents related to the applicable national regulations are made in the form of lists and controlled. For legal

documents such as: enterprise license certificate (No. 107/1996), tax ID, Regent and Governor Recommendation (No.

593/04535/I), permit of BPN’s location (No. 17/SK-IL/MUBA/1997), Permit plantation (No. 336/T/Pertanian Industrial), Land

Use Permit (No. 644/2003, 552/2003). For environmental documents, such as: SK Regents approval RKL and RPL (No.1198

yr 2010), permits of surface water usage (No. 026/SK/Tamben/2009), permits of taking and utilization of surface water (No.

4166 of 2005), permit of the accumulation of fuel (No, 003/KTR/Tamben/2009). In principle, the Company provided

information and responses associated with a document that is owned and available to the public. Available SOP Access

Rights Information / Documents (RSPO/1.2.1/PI) presents the types of information that can be accessed by stakeholders, i.e.:

HGU, SIUP / IUP / SITU. Licensing, HCVA, SIA, wastewater applications, documents, O occupational Safety and Health.

Documents accessible information is available in more stakeholders in Annex 2 Information Access Rights SOP document.

Records of the request and response of information is stored and regulated in the SOP control records, recording is set

according to the needs and nature, namely:

1. need for audit inspection / assessment for 2 years;

2. reference needs for 10 years;


ASSESSEMENT REPORT


3. legal / government legislation until there is a revision;

4. Customer demand for 1 year;

5. Policy agency, until there is a revision;

6. Records of land restitution, not limited.

At the end of the storage expiry, the authorized personal will review and if necessary provide recommendations or methods culling

records stored in the warehouse. Destruction or storage method is recommended to those who are responsible in all departments.


PRINCIPLE #2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

2.1

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

There is some evidence of legal compliance that includes:

1. Provide social security workers, according to the form of Social Security Law. 3 in 1992.

2. Provide equipment Occupational Safety and Health program (K3) for all employees in accordance with Law No. 1 the

1970s.

3. Develop environmental management documents (RKL / RPL) and has been endorsed by the Ministry of Agriculture

according to Law no. 23 in 1997.

4. The company also completed Permit Boiler (Boiler), Steam Turbines, Electrical Installation and Compressor from the

Department of Labor Musi Banyuasin.

Compliance evaluation conducted by the Company for each estate that indicates compliance with applicable legal requirements

and relevant. Examples of evaluation and evidence of fulfillment of compliance follows: Compliance of the company on with the

legality of land tenure, the implementation of environmental and social governance, labor protection, as well as the submission of

the report of several related agencies (e.g. Environment Agency Musi Banyuasin, and Agency of plantation and Forestry District

Musi Banyuasin) states that the GPI is quite obedient and consistent with the regulations. SOP is available: record (No.

010/GPI-PC/II/11) which explains that the company evaluates the completeness and validation rules and regulations that is done

every 6 months'. This statement is intended to ensure that all referred regulations are still valid and updated. There is evidence of

updating the regulations.

Regulatory evaluation dated March 31, 2011, a Compliance Evaluation Matrix of Laws and Regulations that indicates some

companies’ effort of making an adjustments to existing the regulations, e.g.: Adjustment of wages of employees refers to the

Decision of the Governor of South Sumatra Province on Wage No.902/KPTS/DISNAKERTRAN/2010 Sectoral Minimum Prov.

South Sumatra in 2011, the minimum wage in 2011 amounted to Rp. 1,048,440.

Regulatory and legal requirements are recorded and documented in the form of a list of rules and compliance evaluation.

Procedure (SOP) Requirements of Law governs the a updated list of the rules every six months on page 3 at section 6.3.

The company has a mechanism to evaluate the rules and regulations presented in the form of a matrix 'Evaluation of

Compliance Regulations', contains information on legal requirements that must be fulfilled, chapter must be fulfilled,

Compliance indicators, compliance status, and details that indicates material of compliance. There are 19 types of the Act, 6

types of Presidential Decree, 18 types of government regulation, 16 types of Ministers Regulation, 25 types of decisions of the

Minister, and 5 types of Ministerial Decree which are evaluated by the company, including the Law no. 41 of 1999 on Forestry;

Regulation No. 150 of 2000 on Land Degradation Control for the Biomass production, and Presidential Decree No. 32 of 1990

regarding to the Management of Protected Areas; Regulation of Minister of Agriculture No. 14 of 2009 regarding to Peat Land

Utilization for the Oil Palm Cultivation; Law no. 13 of 2003 regarding to the Employment.

The implementation evaluation of regulatory compliance, conducted by examining all the requirements of applicable law


ASSESSEMENT REPORT


(chapter by chapter) compared with the implementation in the company. The study results set forth in the Regulatory

Compliance Evaluation results matrices. Unfulfilled requirements followed up by scheduling for the fulfillment.


2.2

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

demonstrable rights

Companies can show documents tenure of oil palm plantations cultivated in accordance with statutory regulations. The

document is intended for areas of estates and mill of PT Guthrie Pecconina Indonesia (GPI) is as follows:

Land Use Permit (HGU): No. 8 of 2003 covering an area of 10,139.91 ha (Rantau Panjang, Bumi Ayu, Napal and

Karang ringin). Stages of the process of HGU (Letter No. 122/GPI/UM/PSD/VI/2011 and 123/GPI/UM/PSD/VI/2011) in

Mangun Jaya area of 1,519.49 ha; Submission of process HGU (No Letter: 004/GPI / UM/PSD/II/10) covering 1,843 ha

Certificate Company License No. 107 of 1996

Tax ID No.PEM-00177/WPJ.07/KP.06.03/2007 Company

Recommendations Availability of Land by the Regents / Governor No.593/04535/I

Location Permit of BPN No.17/SK-IL/MUBA/1997

GPI EIA was finalized in December 1998, and ratified on February 8, 1999 (No. 01/ANDAL/RKL-RPL/BA/II/1999) by the

Agency of Agribusiness Ministry of Agriculture. Then as the last condition, there were the revised document contained RPL

/ RKL plantation activities and MCC Indonesia PT Guthrie Pecconina November 5, 2010 (No. 1198 of 2010) a total area of

15,425.32 ha

Plantation Business Permit (IUP) No.336/T/PERTANIAN INDUSTRIAL / 2004

HGU Map Scale 1: 100,000

SK HGU No.11/HGU/BPN/2003

Approval in Principle Enterprises Palm Oil 6000 Ha No.350/E5.531/07.95

Corporate Registry No.160/KPTS/TDP-PT/2007.

Legal evidence of boundary marks PT GPI’s area can be shown with a map of parcels of land issued by BPN South Sumatra

Scale 1: 20,000 with Mobile Mapping Boundaries (HGU) GPI and there is a list of coordinates boundaries pole of BPN in all

estate including a temporary limit on area pal HGU in the process. there is a map of boundaries pole of BPN and BPN

boundaries pole data collection has been attempted in every estate, including the coordinates. Evidence of recording

companies has performed the procedure or in a participatory conflict resolution mechanisms (accepted by all parties) have

been available. For example, Block 22 in the name of A. Rafi Bin Rozak, village of Karang Anyar, compensable on

Wednesday, March 26, 1997, valued at Rp. 4 million (four million rupiahs), a transcript of compensation available (No.

146/BIK 22/GPI-I/1997). Photo documentation of the submission compensation and invoices is available. The value of land

compensation is determined by the Local Government District. Musi Banyuasin together communities and companies.

There is some evidence of conflict resolution at the site, which include invoices of compensation payments, land Waiver

Letter, Statement does not dispute, and photo handover compensation. For collective settlement witnessed by the Head of

Village, head of sub district, and other local government authorities. In the Statement stated that removing the right of land

owner (First Party) on behalf of himself receiving compensation for the land and plants on it with the 'no compulsion'.

There is Procedures (SOPs) of Conflict Resolution (RSPO/2.2/PK) available. Conflict resolution procedures in the SOP

describes: (1) PSD personnel responsible for handling the problem of land claim settlement, (2) personnel assigned to record

the issue of land claims in the book registers, (3) verification results are reported to the manager of the local unit, (4) manager

forms a team for the complete the verification of land claims, (5) if the land claims are not legally proven, they will be t

rejected, (6) if there is legal evidence of the claim managers communicate the problems to the PSD Pekanbaru and provide a

solution. Companies can


ASSESSEMENT REPORT


show evidence of action taken in land conflict resolution in a participatory that is acceptable by the parties. Land conflict

resolution mechanisms (Settlement Konflik-SOP.SPO/2.2/PK) have been socialized and consult with communities around the

estates are: (1) Talang Piase Village of (May 14, 2011), (2) Talang iIlo Village (May 27, 2011); (3) Napal Village (29 May 20

110), (4) Karang Ringin II Village (May 26, 2011), (5) Rantau Kasih Village (May 13, 2011). Records of socialization and

consultation activities available include: (a) The type of activity, (b) Place of execution, (c) Materials provided; (d)

Documentation of photo; (e) A list of attendees. GPI in the work area also identified the existence of tenure by the miners of oil

that is traditionally done by the local community so that on June 21, 2011, GPI did effort making some agreement with the

owner of the oil mining, including: (1) For smooth operation and mutual interest in order to coordinate / report to the security /

staff Mangun Jaya Estate when the miners intend to pass portal, (2) for the sake of protecting the environment to be more

attention to the rest of the oil that spilled into the soil, so it will not cause contamination in the soil / trenches around it, (3) not

interfere the estates operations, (4) Any risk arising from the management of oil wells the above is fully the responsibility of

managing the oil wells.


2.3

Use of the land for oil palm does not diminish the legal rights, or customary rights, of other users, without their

free, prior and informed consent.

Based on the document review PT. GPI (EIA and Social Impact Assessment) and the result of interview with corporate social

workers and community leaders Karang Ringin II Village, River Medak, Mangun Jaya, Tanjung Keputran and personal of

Plantations Department District of Musi Banyuasin, areas in / around the working area of oil palm plantation PT. GPI does not

have a traditional land ownership. However at the public consultation, it is known that Musi Banyuasin Local Government has

published Regulation No. 18 of 2005 concerning the Lebak Lebung, which in essence was traditionally regulate the use of the

river through an auction system to the public. . Winner of the auction is called "Pengemin", is allowed to collect fish and other

aquatic biota from certain parts of the river and all rivers in the District Musi Banyuasin unless the Musi River is managed and

owned by pengemin. Related to traditional rights, the GPI has shown the results of identification documents Conservation

High Value (HCV) areas in 2010 which put the river as HCV-5 (the area that people used to meet the necessities of life).

Documents HCV has consulted with the stakeholders, including representatives from the surrounding community (public

consultation records available). To improve social and environmental management systems, it is recommended that the

contents of appeal / warning on the sign board placed in the river are controlled pengemin (traditional use rights to the river)

and managed by GPI as HCV-5, to include Regulation of Musi Banyuasin No. 18 of 2005 about Lebak Lebung.

All areas traditionally controlled by pengemin, identified as HCV-5 and have been mapped clearly in the map scale

1: 47,500.

The agreement between GPI with pengemin about the use of the river is available. The essence of the agreement is both

PT GPI and pengemin should protect the environment, do not interfere each other and if any problems occurred it will be

resolved by consultation.

2.3.1 Status: See CAR No. 2011.33 with the Category Comment For action.

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.

The company has shown the availability of operational cost management plan and the oil palm industry in the form of

presentation of the Budget year 2010/2011 and the projected year 2012-2014. 2010/2011 Budget Document Control


ASSESSEMENT REPORT


Planning & Projection 2012 to 2014. The area of which describes the crop yield; immature area; financial indicators such as

fixed cost and direct cost; funds for social activities, and completion of safety and health. For example: for Mangun Jaya

estate plan crop production (tons) Year 2011/2012: 17.5 tons / ha; year 2012/2013: 20.35 tons / ha; Year 2013/2014: 21.48

tons / ha. Also shown the cost plan (budget) in detail for each estate that describes the details of the cost of activities to

increase productivity. In the document, the work plan document also informed the origin of seeds used for planting year 1998

to 2006 came from GIPAS; Based on a work plan was made a target and examined by the Corporate Assurance Indonesian

Region about each action taken by the Company. In general, GPI presented by management that the results of development

work plan is still in accordance with planned targets and expected according to the projection years 2012 to 2014.

The company has not had a replanting plan, the oldest palm trees planted in 1998, so the actual replanting is 7 to 12 years into

the future. In accordance with SOP Agricultural Reference Manual section 3 (replanting) mentioned that there is a criteria

estate that will be replanted if: a) the year of planting estate is more than 20 years and an average production in a year is less

than 20 tons / ha and / or the average height of plants is more than 15.1 meters b) age of plants more than 25 years and an

average production in a year is less than 18 tons / ha and / or have an average height of 15.1 meters. Based on these criteria

GPI plantation conditions do not apply because the initial crop of oil palm age was 13 years old.

Status : Full compliance

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

4.1

Operating procedures are appropriately documented and consistently implemented and monitored

The company has shown such estate SOP: Standard Operation Procedure Minamas Plantation Indonesia, agronomy No.

Reference Manual. Policy: 110/EST-ARM/08 endorsed by the CEO, GM Legal and Corporate, Controller MRC, HPO, Senior

GM, GM Area Region on August 19, 2008 of which consists of: part 1 operational standards for plant material (Planting

material), part 2 techniques nursery (nursery technique), part 3 replanting (replanting), part 4 the preparation of land (land

preparation), part 5 of the population of plants (planting density), part 6 age begin to harvest (maturity age), part 7 plant

maintenance (field upkeep), part 8 fertilizing plant oil palm, part 9 management of the canopy (canopy management), part 10

water management in coastal soil / peat, ablation part 11, part 12 Standards of maturity, section 13 centrifugal harvesting

(harvesting interval) , section 14: picking loose fruit, section 15 Protection of oil palm plantations (plant protection) No.

30/11/08 Copy and Date Distribution December 22, 2008.

The company has shown technical guidelines mills part I - Minamas Plantation. No. Policy: 110/POD-FAC/07 is known by

Rusli Ujang; Group head plantation Indonesia contains the basics of palm oil processing. There is also guidelines palm

plant engineering part II Minamas Plantation, No. Policy 120/POD-FAC/07. In addition the Company also has a technical

guideline Administrative Procedure of Minamas Palm Oil Plantation and Product Traceability SOPs are also available.

Operational assessment conducted by the Plantation estate adviser evidenced by the available Report Plantation Adviser

for each estate. For example: report of plantation advisor of Rantau Panjang Estate for the period of July 2008 - April 2009

(Minamas / GPI-1/02/08-09) and plantation advisor of Rantau Panjang Estate for the period of July 2010-November 2010

(Minamas/RJE- (GPI-1) / 01 / 2010-11) By Plantation Advisor (Sio Kin Heng). Assessments performed every 6 months.

Operational assessment activities conducted by the mill factory adviser, evidenced by the availability Adviser Mill - Mill Visit

Report Rantau Panjang POM, conducted on December 10 to 11 June 2010 (No. SOU Minamas / GPI / PRT NO. 03/09-10);

visit Mill Adviser conducted again on 13 to 15 February 2011. Financial monitoring was also conducted by Corporate

Assurance. It stated on the Corporate Assurance Audit Report Region, for each estate that is done every 6 months for

example: Corporate Assurance Report MJE (No. PL_0910_I0149_MJE.P_RTN2_FR) dated March 23, 2010.


ASSESSEMENT REPORT


Records of the results of operations estate contained in the Estate Unit Report for each estate (RJE, MJE, BYE, NAE and

KRE) the last document of monthly period was update on May 2011, for example: MJE Estate Unit Report (containing about

short reviewed the Monthly Report); Area Statement: the structure of the Company, Personally and Population; Housing,

building, facilities and infrastructure; Rainfall; Production FFB; Plants produce; Plants Not to Produce (TBM); New Plants;

nurseries; Traction / Transport; SPK Local Employment Advancement; Capita; Economic And Social Security Employees.

Records of the results of the monthly plant operations are recorded in the Monthly Report of RPF, the update document is in

March. For example Monthly Report of March of RPF which contains Production statistics; Production Capacity; Extraction

Rate; Quality; Data Acceptance; Statistics Production and Extraction of May 2011; Daily Production Data; Quality of

Production: Production losses FFB; Mill Pro-cost equipped with the comments of the management related the things that

cause something did not fit the target. Evaluation and analysis related to monthly reports conducted by SOU and Meetings

Monthly meetings are conducted every month.


4.2

Practices maintain soil fertility at, or where Possible improve soil fertility to, a level that ensures optimal and

sustained yield.

Semi-detailed soil survey conducted in November 2008 by Param Agricultural Soil Surveys (M) SDN. BHD. Surveys

conducted regarding the soil types; soil structure; Characteristics of Soil / soil limitations. For example Group A Soil

Management, Soil Map Unit Batang Merbau (BMU / 3), Key Characteristics / Limitations: texture of clay, soil erosion Steeper

slope; level fertility (Low fertility); Management Practices conducted (mitigation and monitoring of erosion: Planting cover

crops, terracing, Frond stacking, good fertilizer Programmed); presence in each estate; Total (ha) in the GPI and the

percentage of the land. From the results of semi-detailed survey conducted in the PT GPI has marginal land in the form of peat

(soil management group E composted of Erong (Erg) / Terric Histosol Gali (GLI) / fibric Histosol and Gondang (GDG) / fibric

Histosol soil series). Peat land area of 1180.03 hectares, spread in 3 (three) estate: RJE (179.6 ha), BYE (59.9 ha), KRE

(940.8 ha). And analysis of leaves was held on September 9, 2009, and on August 4, 2010. For leaves analysis on 2011 will

be conducted on July 2011, up to stage2 analysis activities entered the stage of leaves sampling in each estate. For

example in the RJE conducted sampling leaves on 08/06/2011-19/06/2011, BYE (09/06/2011-21/06/2011), NAE

(22/06/2011-02/07/2011), KRE (23.06.2011 - 02.07.2011), and MJE (24/06/2011 - 07/02/2011). The results contained in the

analyst leaves, leaves analysis report. Example: Leaves Analysis Report dated August 4, 2010 in Karang ringin Estate

Division II Block D008; LSU No. KRE-2D008 (198.86 Ha); Plant in 1999; in Dry Matter (ASH = 7.77; N2, 51, P 0.142; K

1.061; Mg 0.258 ;); PPM On Dry Matter (Fe 86.6; Cu 7.0; Zn 14.4; B 17.5).

The company has SOPs of Palm Oil Plants Fertilization (No. 110/EST-ARM/08 Policy Section 8.1). SOP of Empty bunch

Applications, (No. 110/EST-ARM/08 Policy Section 8.3 Point 2), for example Empty Bunch Application in Block A05 of KRE

and SOP of applications Wastewater (POME) (Policy No. 110/EST-ARM/08 Section 8.3 Point 3), for example Land Aplication

in Block A012 and A013 of KRE. Available estate fertilizer application records that describe information on the type of fertilizer,

Recommendations of each semester and the realization of applications each semester. Fertilizer recommendation based on

the results of soil analysis and leaves analysis. An example based on the results of soil analysis is recommended for fertilizer

micro elements B and in accordance with the documents Estate Fertilizer Application HGFB recommended fertilization

(fertilizer Unsure B) was applied as much as 3638 kg and 3230 kg. Based on the testimony of Assistant Estate realization

causes fertilization has not been in accordance with the recommendation because of fertilizer shortages but still applied in the

next period.



ASSESSEMENT REPORT


4.3

Practices minimize and control erosion and degradation of soils.

From the data clarification semi detailed soil survey results conducted by the MRC (Minamas Research Center) noted that

in the PT GPI has marginal land in the form of peat (Soil Management Group E) consists of a series of Land of Erong (Erg),

Gali (GLI) and Gondang (GDG) area of 1180.3 ha. Available marginal land maps with 1:100,000 scale and PT GPI

Topographic maps with a scale of 1:20,000.

Sloping area including land management into groups A and B. The group was treated using terracing and silt pit which is an

action of a sloping area management strategy that had shown the consistency of the realization development. For example

in the Mangun Jaya Estate (GPI V) Block E009. Based on the data U-Shape, Silt Pit and Nephrolepis in MJE, the large area

become : U-Shape Front Stacking is 1,333.68 hectares, Silt Pits is 19,768 holes, and Terrace is 29 Ha.

Road maintenance program own by each estates in the form of plans and realization of road hardening (hardening,

hoarding, and the formation of a new road). For example: in the estates RJE 2010/2011 fiscal year (July 2010 - June 2011)

until May 2011 the realization of a long road that had been improved to 16.49 KM was on progressed (plan 17 KM).

Peat lands identified in RJE, BYE, and KRE. For water level monitored and managed in every land and estates, the peat and

mineral soil. PT GPI have a program and the realization of 2010/2011 for each estate that have been identified the peat lands

of making water gate and flap gate that aims to maintain the water level. The company also conducted measurements of

water level that is monitored and managed every month.

The company has made efforts of peat soil measurements by installing Piezometer, in the block areas for example in KRE 27

April 2011. The results of the peat soil degradation is monitored every 3 months, according to documents the program and the

realization of measurements planned peat 2011/2012 monitoring conducted in July 2011. However, the GPI still need to

review the amount of subsidence measurements of peat samples by considering the broad representation and the type of

peat, as well as the need to map the distribution and extent of peat which have a depth> 300 cm.

4.3.4 Status: See CAR-2011.05 with the category Comment For Action.

4.4

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

The river management is done by keeping the buffer zone of the river. Management of buffer zone rivers in PT GPI is

evidenced by several things: memorandum from Head Plantation Officer (HPO) dated March 8, 2010 about HCV, which the

buffer zone areas marked in yellow paint; no application inorganic fertilizer, weed control was not done chemically but

manually. Buffer zone area of the left and right along the 50 meters and gradually some trees such as mahogany,

Tengkawang and others, and were planted but new palm oil trees were not planted as a recommendation of HCVC

consultant. Matrix Realization Program and Buffer Zone had been available at the site which each estate informed the long

time frame and water river areas by type of activity, such as: marking boundaries, Installation of sign boards, socialization,

Rengas tree planting, and maintenance of sign board.

The Company had recorded evidence of groundwater and river water quality monitoring which represents the whole area of

estate in the form of river water testing results, and housing wells equipped with quality standards in accordance with

regulation (Permenkes No. 492/MENKES/PER/IV/2010).

Recordings could be shown by the GPI of the test results Sekayu Health Office last March 21, 2011 for clean water in

reservoirs, wells MJE staff, and CSR to public wells, land application of monitor wells, control wells and community wells

(housing) in the area of RJE, with results still accordance with water quality standards (No. Permenkes.

492/MENKES/PER/IV/2010).

BOD routine monitoring conducted every month by the Company is tested by UPTB Environmental Laboratory (BLH) South

Sumatra. The test results are still below the quality standard for land application that is only in average of 1000 mg/l


ASSESSEMENT REPORT


(according to Minister of Environment Decree No. 28/2003 and 29/2003 which is below 5000 mg BOD / l).

The use of water (M3) for each processed of FFB is monitored and recorded. Monitor the results of water usage for the

processing of FFB is still below the specified budget of 1.6 M3/ton given by the company, while the average usage is 0.93

M3/Ton FFB.


4.5

Pests, diseases, weeds and invasive introduced species are effectively managed using appropriate Integrated Pest

Management (IPM) techniques.

PT GPI has an Oil Palm Protection SOP (No. Policy: 110/EST-ARM/08) related to Integrated Pest Management program

include:

a. Control of horns beetle (Oryctes rhinoceros) in the SOP Manual agronomic practices (No. 9xx/PTK-HPT/2004 Policy)

b. Control of leaf caterpillar (No. Policy: 110/EST-ARM/08 section 16.2), Use of Beneficial Plant (Tunera Subulata and

Cassia cobanensis) to controlling and preventing leaf caterpillar pests naturally (Policy No.: 110/EST-ARM/08 section

16.2.1)

c. Control rats in oil palm (No. Policy: 110/EST-ARM/08 section 16.3) Utilization of owls for pest control rats, on oil palm

(No. Policy: 110/EST-ARM/08 section 16.3.1).

The company has a document Implementation and Integrated Pest Management Program for each estate that contains the

program and the realization of planting Beneficial Plant and Making of Nest Box. The company has a realization of the

program documents and evaluation of Integrated Pest Management. IPM programs are based on the results of evaluations

and monitoring pest.

The Company has IPM development document which describe the Integrated Pest Management implementation for each

estate in including: the implementation beneficial plant and the construct of Nest Box. For example: based on the realization

of the documents in the IPM program Mangun Jaya Estate known that until May, planting beneficial plan (Cassia cobanensis

and Turnera subulata 6,005 M2 and 5,357 M2) and the development of 30 units Nest Box with occupational level of 16.67%.

There is also training in Integrated Pest Management. Examples: Training of leaf-eating caterpillars in Karang Ringin Estate,

which was attended by 18 participants (team spray and Staff HPT) on April 4, 2011 and Census Training Owls on January 19,

2011 in RJE, followed by Team Owl Census.

The company has a data of pesticides usage for each estate for one year period that contains of a matrix type of Pesticides,

No. Registration, use of pesticides, use of pesticides / ha, the total active ingredients used, Ton FFB and Active Ingredients /

Ton FFB which informs about the toxicity of pesticides (active ingredient / ton FFB and Active ingredient / hectare). Example:

Pesticide usage in MJE Garlon 480 EC; Number Registration RI.695/9-2008/T; Butoc Ethil Active ingredient Triclopyr Ester;

use per hectare (0.67 l / ha); toxicity of pesticides (Active ingredient / ha = 0.24 l / ha and Active Ingredients / ton

FFB = 0.0000001 l / ton FFB).


4.6

Agrochemicals are used in a way that does not endanger health or the environment. There is no prophylactic use

of pesticides, except in specific situations identified in national Best Practice guidelines. Where agrochemicals are

used that are categorized as World Health Organization Type 1A or 1B, or are listed by the Stockholm or Rotterdam

Conventions, growers are actively seeking to identify alternatives, and this is documented

The company has a list of documents which inform about the use of Herbicides Number registration to the relevant agencies.

Agro chemicals are used such as:


ASSESSEMENT REPORT


• Garlon 480 EC Active ingredient of Triclopyr Butoxy Ethyl Ester, Registration RI. No. 695/9-2008/T

• Audit 486 AS, Active ingredient of Glyphosate isopropylamine. Registration RI. No. 1863/9-2008/T

• Trap 20 WP, Active Ingredients of Metsulfuron-Methyl, Registration No. RI. 1797/11.2007/T

The company had Document Use of Herbicides in each estate which informs the active ingredient used and the amount of use

per hectare. There are also the use of herbicides records and realization of plan documents path chemist spraying; Circle

chemist and FFB Collections Place, period of 2010-2011 in every estate. The document inform the amount of pesticides used,

the amount of pesticides used, the applied area, and frequency of once every 4 months. For use of other pesticides

(Insecticides, Rodenticide and Fungicide) are not available because based on the results of monitoring the level of rats

infestation is below the economic threshold, and even for this type of caterpillar pests and termites as well as disease

(Ganoderma and others) there are no attacks.

The company has the use of herbicides in each estate documents informing producer Dose / ha (dose determined in

accordance with the pesticide label) and the Use of the substance per ha. For example Herbicides Starane in Mangun Jaya

Estate dose producer / Ha 0.25 liters to 1.00 liters and the use of materials / ha: 0.33 liters / Ha. Sprayer and fertilizer is a

personal duty to apply the type of agro-chemicals (pesticides and fertilizers). Related to this, PT GPI has conducted training

with OSH agenda, HIRAC spray team, HIRAC fertilizer, technical work including the determination of dose or doses of

pesticides and fertilizers. Socialization done in each estate accompanied with a list of attendees e.g. NAE April 5; 2011,

RJE: April 4, 2011; MJE dated November 22, 2010 and April 5, 2011; BYE April 5, 2011; KRE April 5, 2011.

Every trace of pesticide waste package is stored in a warehouse of hazardous waste that is available in every estate and sent

to RJF (mill) for some types of waste. Any hazardous waste that goes in the warehouse accounted for in / out and sent to the

supplier, CV Bumi Khatulistiwa that is licensed by the Ministry of Environment (Ministry of Environment Decree No. 323 in

2010). Permit is valid from 28 December 2010 up to December 28, 2015. PT GPI also has permit of a temporary hazardous

waste storage from the Ministry of Environment (No. 73 of 2009 dated March 13, 2009) for the locations of RJF, RJE, KRE,

BYE, NAE and MJE, District Babat Toman and Sekayu, District of Musi Banyuasin, South Sumatra. Based on a visit in NAE

Hazardous waste storage and the results of consultation with the Head Office of Environment and Head of the Environmental

Impact Analysis found that hazardous waste was stored more than 90 days would not be a problem in condition it should be

isolated and certainly would not out to contaminate the environment.

Types of chemicals used are detailed and made in the form of a list. The use of chemicals is not an active ingredient

prohibited, the type of chemicals used including garlon / kenlon (triklopir), Basta (ammonium glufosinat), starane (fluoroxipir),

Audit / Prima ups (iso prophil glyphosate amine), Trap / Meta Prima (metsulfuron metyl), Metafuron (metsulfuron metyl),

Amyfosat (glyfosat). The company had a documentation policy not to use chemicals that are categorized WHO as type 1A and

1B. Pesticides klerat (Active Ingredients Brodifacum) and Decis (Active ingredient deltamethrin) in the form of a Memorandum

of chairman SOU 22 (PT GPI) are in the know by GM (No. 01/Ket-SOU/05/2011) concerning Termination of Use of Material

On Type Klerat (active ingredients Brodifacum) and Decis (deltamethrin active ingredient). Next control rats and leaf

caterpillars performed by applying Integrated Pest Management with Owls and Planting Beneficial Plant.

Team sprayer and fertilizer for each estate get a medical checkup by a doctor and cooperate with the Prodia laboratory that

showed the health condition of each worker and the recommendations. Medical checkup conducted periodically every 6

months. Implementation of Health Inspection conducted last 22-25 March 2011 for all estates and RJF. Medical checkup

includes check of the skin, eye, ear, respiratory, heart rate and blood pressure. Based on the results of the medical checkup

the workers had good health and no complaints.

Company have workers treated registry book compiled by the doctor of estate. It informed regarding to the registration

treatment for the workers, including prenatal care estate worker. For example: based on the book registers, workers who

had medical treatment in May, no. 268, an examinations on behalf of Sutarni, care / sprayers were known that the person

concerned was breastfeeding so it should move to other jobs that were not associated with chemicals. The company also has


ASSESSEMENT REPORT


a policy that workers who are in a state of pregnancy do not work on the job-related chemicals, including pesticides (sprayer’s

team). For example: Letter of recommendation nurse estate dated on February 7, 2011, addressed to the senior assistant

employees on behalf of estate describe Arina (Employee Maintenance / fertilizer) declared pregnant, so that the Senior

Assistant recommend the Foreman 1 to move the worker to get a job that was not related to chemicals and types of jobs that

were not at risk of womb (Path Care Manually).


4.7

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

The company suggests the program policy documentation including SOPs OSH Occupational Health and Safety Policy No.:

711/TQEM-P2K3/07 Minamas TQEM passed by the Manager, GM HRM, Operations and Head Plantation. No. 30.15.01

Copy distribution date 31 December 2007 which contains:

Occupational Safety and Health Policy (724/TQEM-SPMS/09 passed in date 1 April 2010 by the Head Executive

Officer).

The company's commitment to the OSH

Policy Statement Health and Safety

Administration and Management Procedures

Procedures of Committee for Occupational Safety and Health (OSH)

Procedure of Hazard Identification Risk assessment and Control (HIRAC)

Procedures of Accident reports, Investigation and Follow-up

Communication and Media Communication Procedures

Personal Protective Equipment Procedure

There is also available a Program and Realization of Occupational Health and Safety and Environmental Protection every one

year for example the period of July 2010-June 2011 for each estate in the form of a data matrix containing the description,

performed by, the period of review / examination, Schedule. Examination of the implementation of safety and Health (OSH),

conducted by Field Asisiten PSQM accordance with SOP guidelines PSQM Field Work Assistant (Policy No.

721/TQEM-PKA/08) involved examining the socialization of OSH policies to employees; check the condition of equipment;

check procedure safe working; check the availability of active fire protection and First aid kid box; checking the

implementation of emergency response programs contained in safety reports Check list of valid until December 2010. Since

January 2011 charging Check list of safety report by the Assistant PSQM replaced with Observation Card Hazards / Safety

(Safety Hazard Observation Cards) and for charging Check list safety report still be conducted by each estate.

There were Occupational Safety and Health Committee in each estate, for example in the NAE with the duties June 27, 2010

until June 26, 2012 approved by the Department of Social Welfare, Labor and Transmigration District of Musi Banyuasin

decisions approved in accordance Number: 11/SK-P2K3/DINSOSNAKERTRANS / VI/2010. There were also the minutes of

OSH Committee meeting, NAE:

Meeting dated March 26, 2011 at NAE on understanding of SOPs, OSH socialization, and socialization of Hazardous

waste.

Meeting dated 25 November 2010 regarding PPE, compliance with safety signs.

Meeting dated August 28, 2010 regarding environmental cleanliness and housing; socialization of OSH

Medical checks conducted by a doctor and cooperate with the Prodia laboratory that shows the health condition of each

worker and the recommendations. Medical check conducted periodically every 6 months. Medical check includes check of the

skin, eye, ear, respiratory, heart rate and blood pressure. This was evidence with available of RJF employee screening data


ASSESSEMENT REPORT


showing the results of periodic checking every 6 months. For example: checking of workers on behalf of Eriansyah (NIK 43

455 part workshop) equipped with the results of checking in October 2010 and March 2011 (22-25 March 2011), result of

medical check was good health. Employee Screening Data Estate that showed the results of periodic checking every 6

months. For example: Checking of employees on behalf of Erna (age 36 years, Sprayer) equipped with the results of

checking in October 2010 and March 2011, result of medical check was good health.

The company has Document of Hazard Identification Risk Control (HIRAC) in the estate. HIRAC includes activities of each

work. For example: the work of Harvest (Block Harvesting System) - Setting length of harvest tools, Hazard (finger pinch),

effect (finger injury), Risk (Effect = Law, Potency = Law, Risk = Law). There are also Risk Control and Document HIRAC to

the factory (RJF) for each job at each station. Such as Job Checking and cleaning of the fan impeller at the station Nut and

Kernel, Hazard hit impeller fan,-effect (broken hand), Risk (Effect = High, Potency = Law, Risk = Medium) Risk Control:

(Lock Out - Tag Out System, a sign was no improvement, supervision, SOP Operations, Safety Training Awareness, Use

the appropriate PPE), PIC of Assistant.

Available training records for the OSH include:

Training Spray procedures relating to safe working in RJE on May 28, 2011 attended by 20 participants (sprayers and

foreman).

Training fertilization procedures relating to safe working in RJE on May 26, 2011 attended by 20 participants (fertilizer and

fertilizer foreman).

Training in the use of PPE RJE on 25 April 2011 attended by 22 participants (harvester and foreman)

Training in use of Fire Extinguisher date 25 March 2011 attended by 41 participants in BYE (Team Extinguisher, Estate

workers, and staff).

Workers Training for Crane operator and Heavy Equipment Operators and implementedby the Department of Social

Welfare, Manpower and Transmigration in collaboration with CV EMCO Medan on 9 to 11 March 2011 which was followed

by 9 workers Estate furnished with a certificate of evidence.

Boiler operator training and certification conducted by the Department of Social Welfare, Manpower and Transmigration in

collaboration with CV EMCO Medan to factory workers in the form of certificates for example certificates for Purnawan,

Boiler Operators have been trained on 10 to 15 November 2010.

The company had an emergency response SOPs, such as:

Fire Prevention and Control SOP

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

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

SOP Flood Prevention and Control (006/GPI-11) dated March 15, 2011

Emergency Response Teams: The organization also had an Emergency Response Team Structure for each estate and mill

for example in Bumi Ayu Estate Emergency Response Team were chaired by Bambang Sulistyo, Commander team of

Hennry Simatupang, Chairman of the Response Team Alpian Hasan. Available Training and Fire Control/ emergency

response Simulation, dated on April 23, 2011 followed by 46 participants in RJE.

The company has a map of the location of water sources for each of the estate include: rivers, reservoirs and ditches. The

company also has an inventory list of equipment the Fire Department of the matrix type and number of fire extinguishers fire

extinguishers is equipped with the evaluation of adequacy fire extinguishers compatible with the level of its vulnerability.

The company has a data inventory of fire extinguisher for each estate that contained the data availability of fire extinguishers

for each Estate. The number of fire-fighting equipment such as: 1 Unit of Pump Robin, 5 Meter of Suction Hose, 20 Meter of

exhaust hose,6 pieces of bucket, pieces of hoes, 6 pieces of Helmet, 6 pieces of gloves, 6 pieces of glass eyes, 1 unit of

water tank, and APAR 56 units. Inventory of the number of fire extinguisher is also available in the Mill, Lay Out of fire

extinguisher; There is also a Lay Out Hydrant in the Mill with a number of 7 pieces. Layout Available First aid kid box


ASSESSEMENT REPORT


placement is based on box numbers that can inform the location and number of box in each estate. The company provides

PPE for workers evidenced by the minute of handover PPE to workers, for example minute of handover Apron (27 pieces),

Woven Gloves (28 pieces), Ember (27 pieces) and Masks (28 pieces) for workers of fertilizer NAE on the date March 21,

2011.

Training First aid kid last on March 26, 2011 which was attended by 83 participants equipped with a photo of activities,

training materials delivered by Doctor estate (Dr. Waluyo) and comes with a list of attendees in mind that the Estate and mill

workers have been trained.

Available records of work accidents in each estate form documents the results of monitoring occupational accidents in the

garden was done every month and then reported to the Department of PSQM / ESH and stored in each estate in the

document Safety and Health Report. In the document describes the results of such monitoring on the date of the incident, the

victim's name, gender, workers status, place of accident, type of accident, number of people, lost workdays, categories of

accidents, causes of accidents and accident analysis was then performed by ESH Manager recapitulation, in the report ESH

Region Sumatra and distributed to all unit was equipped with the evaluation. Examples: in case of work accidents in March

2011 in BYE, cause of accident is "Crushed by a Chisel", and then analyzed the cause of the accident was careless work.

But it was recommended, so that companies could be more careful in distinguishing 'Work Accident Cause' with 'type of work

accidents' that can determine precisely and corrective actions to prevent the same events.

4.7.10 Status: See CAR-2010.13 with the category Comment For Action.

4.8

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

The company has a continuous training program for staff, workers and contractors for a period of one year that described the

training program based on training requirements for each position with a target date based on the training schedule.

Examples: Training procedures required by the foreman of harvest and harvesters was programmed on May 2011 and

implemented on May 26, 2011 at RJE.

The company has an Employee Training Summary document for each estate and mill, explained the Employee name,

Employee Identification Number, Position, type of training, years of training and the existence of a certificate. Realization of

training appropriate to the training program based on training requirements workers to increase the capabilities of each worker

in accordance with its competence.

The company required contractors who were trained in the Letter of Agreement work contractor. For example, for a driver

might have a driver's license. Selection of contractor based on tenders and work experience. For local contractors are

programmed to follow the training in accordance with the training program each estate for example training in the use of PPE,

First aid kid and simulation and safe driving techniques to contractors transport FFB.


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.

GPI EIA was finalized in December 1998, and ratified on February 8, 1999 (No. 01/ANDAL/RKL-RPL/BA/II/1999) by the

Agency of Agribusiness Ministry of Agriculture. Then as the last condition, there were the revised document contained RPL /

RKL plantation activities and MCC Indonesia PT Guthrie Pecconina November 5, 2010 (No. 1198 of 2010). Preparation of


ASSESSEMENT REPORT


RKL / RPL was based on Regulation of Environmental Ministers (No. 8 of 2006 concerning the guidelines EIA). Information

last condition for the area is the area of GPI: GPI (RJE): 3,534.79 ha, GPII (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 or a total area of 15,425.32 ha; and factory with engine capacity of 80

Ton / hour, with production of 60 tones FFB per hour in the area of RJE.

The report of RKL and RPL presented information of the company's identity, location of activities, descriptions of activities,

the development of the surrounding environment. Implementation and evaluation include: air quality / noise, water quality,

effluent quality / solid, the potential for fires, disturbed flora and fauna and public unrest. The Company had provided

procedures for monitoring flora and fauna Number: 01/GPI-SOU/11 that explains the frequency of monitoring of flora in the

area of HCV was done once in 5 (five) years, fauna monitoring once a year. Section 4.0 described the fauna monitoring

transects made through the system, and observation of flora conducted through a system of sample plots with the

provisions of 2x2 m for seedlings, 5x5 m of saplings, small trees 10x10m and 20x20m tree level. Last monitoring of flora

and fauna conducted on April 2011. Monitoring of public unrest is done once a year through questioner methods.

Records of environmental management reports available in the form of documents Management Implementation Report

and Environmental Monitoring (RKL / RPL) are submitted to relevant agencies on a regular basis per 6 months. Results of

interviews with Head of the Analysis and Control of Environmental Impacts of Environmental Agency Office in

Musibanyuasin District, stated that the GPI regularly submit the realization of RKL / RPL report and always coordinates on

any environmental problems.

The Company has revised the EIA document in the form of documents RKL and RPL performed on November 5, 2010 (No.

1198 of 2010). The document covered the operational area and the activities of the Company which includes 5 estates and a

palm oil mill.


5.2

The status of rare, threatened or endangered species and high conservation value habitats, if any, that exist in the

plantation or that could be affected by plantation or mill management, shall be identified and their conservation

taken into account in management plans and operations.

The Company has conducted an assessment of HCV assisted by consultants covers an area manager of PT Guthrie

Pecconina Indonesia (GPI). Implementation of the assessment conducted on November 4 to 13, 2009. References used for

endangered species identified were the IUCN Red Data list, Appendix I of CITES. Based on the results HCV identification

for the plant was Kempas (Koompasia malaccensis), beehive (Koompasia excelsa), Tampuy (Baccaurea macrocatpa),

Bungur (Lagerstomia speciosa) and Trembesu (Fragrae fragrans). For the Animals, root tiger (Felis bangalensis), kingfisher

birds (Alceda atthis), monitor lizard (Varanus nebulosus) were identified (HCV document PT GPI January 2010). Then

habitats with high conservation value areas identified in the GPI: HCV 1.1. Areas that had or provided support functions for

protected areas or biodiversity conservation, HCV 1.2. Endangered species, HCV 1.3. Areas with populations species

habitats endangered, or protected or limited deployment to survive (viable population), HCV 4.1. Region or ecosystem are

important for water supply and flood control for downstream communities. HCV 5 areas that have important functions for

the fulfillment of basic local society (fisheries, revenue compliance, rivers or lakes or springs to life). HCV 6 areas with

important functions for local communities’ identity (tomb).

Based on the results of the identification of high conservation value in GPI areas where rare and endangered species

identified in the document assessment matrix described HCV management plans and monitoring of HCV in PT GPI.

Furthermore, GPI has made HCV management programs for each estates (2010-2011), detail the management of HCV

program in period of July 2010-June 2011 have been provided for each estate (Bumi Ayu, Rantau Panjang, Napal, Karang

ringin, and Mangun jaya) explained detailed type of HCV, in charge of implementation, review period, and time frame


ASSESSEMENT REPORT


implementation. There are still some activities that have not been implemented according to planned target date. For

example, enrichment planting in HCV 1.1, 1.4, 5 at Bumi Ayu Estate, but the company has made plans again (reschedule).

Rehabilitation program of buffer zone for 2011/2012 will begin on July 2011.

To manage HCV at some estates have been carried out direct action or applied in the field e.g. HCV 1.1. and 4.1. Signboard

mounted on the river as a riparian area buffer areas and protected areas for endangered species in the sample: RJE Piase

river; HCV 5 (spring) in the MJE in the fence and given a nameplate mounted HCV Protection 5. The steps undertaken are not

fully shown in accordance with the action plan or program monitoring and management of HCV identified in accordance with

the documents the results of HCV assessment in January 2010.

To manage HCV at some estates had been carried out direct action or applied in the field such as: installation of the sign on

the river as a riparian area buffer areas and protected areas for endangered species; installation of signboard surrounding

of HCV Protection 5 (spring). Form of warning signs was an appeal to all parties, employees and the community. The

company also had to socialize with HCV, for workers in each estate through briefing for example: maintenance foreman

briefing to should not to spray in the area of the buffer zone and through notice boards they should not to hunt protected

species, a program and the realization buffer zone in 2010/2011 was available and the proof of socialization on May 2011

including minutes of socializing with people around the estate for the entire estate, photos, and attendance lists.

Socialization material includes program management company HCV, protective measures taken (information boards,

fencing springs, etc.).

GPI had shown HCV to each estates officers with the decree implementing the task manager on the establishment of

monitoring programs and the HCV:

NAE dated 6 April 2011 Bp. Arianto

MJE dated 1 April 2011 Bp. Sularno

KRE dated 2 April 2011 Bp. Herianto

BYE dated 8 April 2011 Bp. Asep Raidon

RJE dated 8 April 2011 Bp. Abdul Arpan

HCV internal training has been done to each person in charge, on 8 April 2011 and 10 May 2011.


5.3

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

The company has identified sources of waste are documented in each Estate. The document also identified waste in the mill

that contains a matrix of type of waste (B3 Waste, Domestic Waste, Clinical Waste and Waste mill), waste type, and waste

and resource management. For example: Type of Domestic Waste (waste paper, plastic, bottles, organic waste), waste

resources (housing, offices, workshops and warehouses), and their management in accordance with the reuse and disposal

regulations. In addition the Company showed identification documents of Exhaust Emissions for MCC RJF form of a matrix

that described the category of Air Pollution and Emissions, Noise; origin of emission and pollution control set a For example,

air pollution and emissions arising from Boilers chimneys and smoke generator, and the control it through a measurement of

Gas Emissions in boiler 2 (two) times a year/ per semester.

In the waste identification documents there is an attempt to reduce the waste such as reuse of waste, empty bunch and

Palm oil mill effluent as organic fertilizers. Regarding the waste management of hazardous materials, the Company has a

procedure (SOP) Handling of Hazardous Waste (7307/GPI/11) which includes the registration of waste, packaging criteria

of Hazardous Waste Storage, required packaging, storage of hazardous waste, hazardous waste monitoring. Handling of

Non-Hazardous waste has been regulated in the SOP (No. 7307/GPI/11 document) dated May 15, 2011. Section 6.8 of

SOP states that Non-B3 waste that has been collected will be sold to third parties. Field observations indicate that there has


ASSESSEMENT REPORT


been implementation of appropriate regulations, such as:

1. Hazardous waste is stored in a warehouse that has a permit from the Ministry of Environment.

Waste will be sent to the processing of hazardous waste that is licensed.

2. The liquid waste used for land applications and was granted permission from the Head of the Environment Agency (BLH)

Musi banyuasin District.

3. Bunch of empty solid waste, used as material for land application of organic fertilizer.

4. Fiber and shell waste as a renewable energy source, used for power generation (boiler)

Handling of Hazardous Waste SOP (7307/GPI/11) is available which includes registration of hazardous waste, packaging

criteria of hazardous waste, storage of packaging required, method of storage of hazardous waste, packaging and handling

flow charts including Pesticides Used in charge (Section Head, Warehouse officer Hazardous Waste Materials, and Related

Units).

In the flow chart, are the stages of work including pesticide packaging sent to the washing place, rinsed thoroughly

packaging (minimum rinsed for 3 times and the used water stored tp be used for spraying), bottled minced into 6 pieces and

then put in a drum, the packaging is managed in accordance with the regulations. Hazardous waste recordings have been

available to the entire estate, the type of waste is monitored / recorded covers, packaging herbicides, used motor oil,

drums, Knap sack, accumulator, and ex filters, the water cleaner. Observations to the warehouse storage of hazardous

waste NAE, and KRE, there are evidence that the symbols of hazardous materials and hazardous waste materials have

been implemented in accordance with Kep-01/Bapedal/09 / 1995, concerning Procedures and Technical Requirements for

Storage and Collection of Waste Materials hazardous. Based on the explanation of the Head of Analysis and Environmental

Impact Management of Environmental Agency Office of Musi Banyuasin District, the storage of waste which is more than 90

days in the warehouses is permitted as long as Possible be isolated so as not to contaminate the environment. But still

there is a program of waste management of hazardous materials and hazardous materials that are in the process, among

others:

1. Applications for temporary waste storage permit for the entire estate of Hazardous Materials (Number

044/GM-GPI/UM-Ex/IV/11 April 2, 2011).

2. Construction of a canopy in KRE diesel tank.

There is a recording monitoring the monitoring of waste including hazardous waste materials, waste empty bunch, Palm Oil mill

effluent, Waste Fiber and Shell. Monitoring of waste such as: Monitoring of Hazardous waste in the Hazardous Waste Warehouse

Card.

5.3.3 Status : See CAR -2011.34 With the category Minor

5.4

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

The Company has recorded a fuel consumption monitoring fiber (Ton) and shell (Ton) per month which is used to treat signs

of Fresh Fruits (Ton) and produce energy. Records of monitoring and analysis of renewable energy use efficiency (fiber and

shell) and the results of the analysis are available, where the average use of fiber and shell the period 2010/2011, of 0.46

tones / tone of CPO (higher than plans to use 0.44 tones / ton CPO) so increasing use of fiber and shell to reduce the use of

diesel fuel.

The Company has recorded the use of fuel oil (diesel) each month in the mill and estates. Records of diesel fuel usage and

analysis have been available for the period 2009/2010 and 2010/2011. Monitoring results showed the use of diesel as

follows: The use of solar period July 2009-June 2010 was 8.72 l / tone of CPO and the use of solar period July 2010 - May

2011 are 6.45 l / tone of CPO. This shows the efficiency of diesel by 26.03%.



ASSESSEMENT REPORT


5.5

Use of fire for waste disposal and for preparing land for replanting is avoided except in specific situations, as

identified in the ASEAN guidelines or other regional best practice.

PT GPI has a policy not to burn a new land clearing activities and replanting in accordance with applicable SOPs land clearing

in Minamas Plantation.

SOPs related to land preparation of PT GPI include:

Plantation Management Guidelines No. continuity. 724/TQE-SPMS/09 points 5.7.2 Policy Regarding Technique Without

fuel (Zero Burning)

The company's policy is contained in Oil Palm Agronomy Reference Manual Part 4: Preparation of Land (Land

Application) Points 3.1.B stating that the disclosure shall be in accordance with a decree of the Director General of

Plantation (No. KB.110/SK/DJ BUN/05.95 ), dated May 30, 1995 concerning the technical guidelines for land clearing

without burning plantation development as land preparation guidelines without fuel, then the land Opening activities (land

clearing) should be guided by the contents of the letter.

There are report formats land preparation, where there are no stages of burning for land to be done planting (preparation)

for example, blocks (D015 and D022) KRE; Block (C010 and C011) NAE, which is the planting of embroidery for the year of

planting 2006, which submerged in water / flooding planned to be implemented in 2012/2013 and 2013/2014 according to

projections. And based on field visits found no burned.

Available land fire prevention procedures include preventive activities (prevention), action, and administrating. The

procedure has been described the stages of fire prevention and control activities are adequate. Examples preventive

actions: mapping fire-prone areas carry out patrols with a frequency appropriate level of vulnerability; make the sign

warning of fire in fire-prone areas, etc.

The company has a firehouse in each of estates and has done an inventory of fire extinguisher for every estate which is a

fire-fighting facilities and infrastructure fields. For example in NAE, among others, has: 1 Robin Pump Unit, Suction Hose 5

Meter, 20 Meter exhaust hose, bucket 6 pieces, hoes 5 pieces, 6 pieces Helmet, gloves 6 pieces, 6 pieces of glass eyes, a

water tank unit, and APAR: 56 pieces. The company also has to evaluate the adequacy of fire equipment in accordance with

the Emergency Fire Response SOP. All the equipment has been tested in a simulated fire fighting.


5.6

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

monitored.

Available documents on identification of control potential hazards (Hazard Identification Risk Assessment Control - HIRAC)

for each station and processing activities GPI Oil palm Oil Mill. i.e.: presents a concise source of pollution and emissions

(stations); dangers Posted (including pollutants, emissions and noise); and handling. Available reports document ambient air

quality monitoring and emissions, the document presents the monitoring of air quality, air quality monitoring methods and

monitoring results. The test result at 7 May 2011 has shown the Particulate: 89.5 Mg/Nm3 and the opacity (dark smoke):

<20%. In the document Draft Report of RKL / RPL during the period I (January-June) of 2011 explained that the

implementation of air quality and emissions monitoring is done periodically every month, air samples taken were analyzed in

an accredited laboratory.

Quality of emissions is periodically controlled from pollution sources in the regular environmental monitoring reports every

semester, examples of second Quarter 2010 (July - Dec 2010). The results of monitoring and measurement of emissions

released by the boiler and generator sets (the last data 6 to 7 May 2010) and measuring the results are still below the threshold


ASSESSEMENT REPORT


or the quality standard (emission quality standards are not moving according to regulations gubernatorial south Sumatra No. 15,

dated May 15, 2005).

Based on the results of monitoring and measurement of air emissions conducted each semester, are evaluated in the report of

management plans and environmental monitoring. Evaluations conducted by the Company and are still below the quality

standard (Regulation of Local Government No. 15 dated May 15, 2005). Because test results are still below the quality

standard, the Company tried retaining emissions and pollution that arise under the quality standard. The company has shown

record to reduce the emissions and pollution through the construction of the furnace in the dust collector is cleaned every day;

and preventive maintenance efforts to boilers and generators every week in the form of: cleaning the boiler, generator

cleaning, maintenance (e.g. periodic replacement Ollie).

Wastewater ponds owned by PT GPI has used anaerobic pond system with 7 pools (4 pools anaerobic) and the last pool

utilized for land with an area of 97.29 ha application in block A007, A008, A 012, A013 with a number of flat bed 8158. Every

month conducted an analysis of liquid waste (effluent) that is sent to the BLH South Sumatra (last data carried out testing of

wastewater ponds 7 on March 15, 2011 with results still below the quality standard (Minister of Environment Decree Number:

28/2003 and 29/2003) where the pH between 6 -9 and BOD for land application under the 5000 mg / l.


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.

Social impact assessment report of oil palm plantation management of PT. GPI is available for 2010 includes information on

negative and positive potential effect caused by the operation of oil palm estate and palm oil mills PT.GPI, preparation of

documents involving the affected communities. The positive impact of company PT. GPI including: local employment in estate

or in the mill number of 861 persons. The formation of micro-businesses such as shops, stalls and mobile vendors, availability

of basic educational institutions, healthcare facilities available (clinic) and doctors.

In addition, the existence of the company also affects the accessibility of transportation facilities open and public roads

constructed and maintained by the company making it easier for public transportation. While the negative impact of the

existence of PT. GPI including: the occurrence of damage to the river so that water quality and discharge decreased,

society cannot utilize the most of that river as a source of income of the population (declining fish), the source of irrigation

fields (paddies many are dry), reduction of discharge of river water due to canal by the company, demands of the people

that have the land to be included as a plasma besides that it cause the land claims, currently (April 2011) it has been

completed.

Management plans and monitoring of social impacts contained in the report Environmental Management Plan (RKL) and

Environmental Monitoring Plan (RPL) e.g.: reports RKL / RPL from July to December of 2010. In the RKL document explained

that the activity of PT. GPI has caused the differences level between workers and the public welfare. To prevent this problem,

the company recruits workers and conduct community development programs (community development). RPL documents

from July to December of 2010 reported the results of monitoring the public unrest, through direct observation and approach

to community leaders around the plantation. The company has a logbook to record incoming and outgoing mail as well as

complaints of negative impacts caused by corporate activities. Received complaints will be processed and monitored

according to applicable procedures, for example procedures for handling complaints (Documents: RSPO/6.3/KKM). In

handling the negative environmental and social impacts, doing consultations with the affected parties and coordination with


ASSESSEMENT REPORT


relevant agencies, for example the Environment Agency and the Government of Musi Banyuasin.

There was a document revision of RPL / RKL regarding the activities of plantation and mill of PT GPI on November 5, 2010

(No. 1198 of 2010). Preparation of RKL / RPL was based on the Minister of Environment Regulation No. 8 in 2006 concerning

the preparation of EIA guidelines. Revision of environmental governance documents includes work area of GPI and the

impact on the environment and social activities.

EIA reporting was done by GPI in the form of the results of monitoring reports and environmental management (RPL / RKL)

reported regular (routine) every 6 months, for example: reports RKL / RPL first semester (January-June 2010) and the second

was the period of July to December 2010. In the report RKL / RPL includes the social impact such as public unrest and

evaluated.

The company has a particular concern with the scheme KKPA smallholders, but this scheme has not been entered because

the scope of the RSPO certification up to now still in the preparatory stage where several agreements between farmers and

companies are still in the process of agreement between the parties. The following general information KKPA schemes that

have not been included in the RSPO certification:

A. Permit the location of stage I (one) area of 2,000 ha

A.1 planting acreage in 2005 covering an area of 344.74 ha

A.2 acreage planted in 2006 covering an area of 107.27 ha

A.3 planting acreage in 2009 covering an area of 559.34 ha

A.4 TB area s / d in March 2011 covering an area of 164.10 ha

A.5 plan next plant 824.55 ha

B. Permit the location of stage II (two) covering an area of 4,000 hectares

B.1 Plan 2011/12 planting budget - 2,000 ha

B.2 Plan 2012/13 planting budget - 2,000 ha

KKPA Location is: Gajah Mati Village, Sub district of sungai keruh, district of Musi Banyuasin; Serasan Jaya Village and

Kayuara village, Sub district of Sekayu, and district of Musi Banyuasin.


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.

Communication procedures and consultation with communities around the estate is in the SOP of Communication /

Consultation with the Community (RSPO/6.2/KKM) PT. GPI Minamas Plantation. The SOPs are arranged if there is

something to be communicated and consulted with the community; manager of the unit provides a letter through the village

head. Communication and consultation with the public should not be more than 10-days for the public to respond and then

the manager will solve it. Records of consultation and communication with the public are available in the log book. The

company has tried to do documentation of all consultation and communication with communities and other stakeholders.

The Company has conducted socialization and consultation on Communication Procedures / Consultation with local

communities (SOP: RSPO/6.2/KKM), among others: (1) Talang Piase Village (May 14, 2011), (2) Dusun III Talang Ilo (May

27, 2011), (3) village of Napal (29 May 20 110), (4) village of Karang Ringin II (May 26, 2011), (5) village of Love Overseas

(May 13, 2011). Records of socialization activity consist of time of activity, place of the implementation, the material

provided, photo documentation and a list of attendees.

There is a list of stakeholders has been prepared and is available consisting of name / agency, job title, address, phone /

office / hp. The list contains information for the central level stakeholders (stakeholders in Jakarta), Provincial, District,

District, Village, Community leaders every village; contractors, suppliers and customer PT. GPI; School; Hospitals,


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Insurance; Banking.

Records of people's aspirations and responses regarding the follow-up of the company have been documented in the form of

log book and any aspirations have been followed up, for example: Application for the Village Head (KRE), regarding funding

construction of mosques of Al-Muhajirin, approved in the form of material assistance, the harmonica wire fence on March 6,

2011.

The company already has person in charge for consultation and communication with the community, Mr. Ahmad Yani, a

PSD Staff, stated in decree (No. 001/Mgr-SK/III/2011) on March 31, 2011. The Jobs description of him, such as: (1) Dealing

with the social field, (2) Dealing with land issues, (3) Public Relations.


6.3

There is a mutually agreed and documented system for dealing with complaints and grievances, which is

implemented and accepted by all parties.

Complaint resolution mechanisms (dissatisfaction can be derived from the internal / employee and external) are available:

1. SOP Handling Employee Complaints (RSPO/6.5/PKK). The sequence of events of this SOP that the complaint proposed

by the Supervisor and then forwarded to assistant to manager, manager provide feedback or submit it to department and

the Department to respond to manager to be forwarded to employee.

2. SOP Communication / Consultation with the Community (RSPO/6.2/KKM); complaints submitted to the manager by

sending a letter (from the village head) and through the manager provide feedback or submit it to department, then the

department responded for manager to be forwarded to the public.

3. Public Complaint Handling SOP (RSPO/6.3/PKM); Head of administration was recorded public complaint and submit to

manager and then manager provide feedback or submit it to department and department members respond to manager to

be forwarded to the public.

Mechanisms for resolving complaints (grievances of the internal / employee and external) have been available. The

Company has conducted socialization and consultation of Procedures (SOP): Consultation and Communication with the

Public (RSPO/6.2/KKM), Public Complaints Handling (RSPO/6.3/PKM); Handling Employee Complaints (RSPO/6.5/PKK) and

Conflict Resolution (RSPO/2.2/PK) in a participatory manner to communities around the garden, done at: (1) Talang Piase

village of (May 14, 2011), (2) Dusun III Talang Ilo (May 27, 2011), (3) Napal Village (May 29 20 110 ), (4) Karang Ringin Village

II (May 26, 2011), (5) Rantau Kasih Village (May 13, 2011). Records of dissemination activities consist of the activity, place of

the implementation, the material provided, photo documentation and a list of attendees. Complaints from workers can be

completed for about two days (calculated from complaints into management until completion of realization), whereas the

handling time of complaints from the public on the type of complaints, if the complaints are easy and the facilities available

can be solved approximately in three days, but if the complaint is difficult enough, it needs to be consulted to the central

management and take around a week.

Recording information handling complaints / objections is well documented. This can be seen in the log book of complaints

for each estate. One example of handling employee complaints were found on April 6, 2010 on behalf of employees Ahmad

Saihu, home repair problems (wooden houses were weathered), then the company had executed the procurement of wood

on April 7, 2010. Sample handling public complaints on May 3, 2010 on behalf of Ali Siarnu (Mangun Jaya Village Head)

asked for help repairing roads, responded by sending graders and road repairs at KM 4 Mangun Jaya.

The Company has a scheme of settlement of land claims case. This scheme explains the source of community claims

cases, community groups and individuals, submitted to the estate manager, and the manager will forward it for Manager of

the PSD, then the examination / review of documents conducted. The documents to be checked or examined, such as:

a. Legal documents, and then conducted discussions / negotiations to agreement and realized payment


ASSESSEMENT REPORT


b. Documents are not valid claims (speculation), conducted deliberation until consensus, and then the realization of

payments made in the community development program or plasma / KKPA. If it was not until the agreement is legally

resolved. Calculation of compensation made between the companies with claimers (peoples which claim the land) and

involves Musi Banyuasin District Government, especially the Department of Plantation.


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 review of the documents in the PT. GPI and interviews with social officers and prominent corporate community

Karang Ringin village II, Village of Sungai Medak, Mangun Jaya, Tanjung Keputran and Department of Plantation of Musi

Banyuasin, in or around area of oil palm plantation of PT. GPI does not have the traditional rights of land owners.


6.5

Pay and conditions for employees and for employees of contractors always meet at least legal or industry

minimum standards and are sufficient to provide decent living wages.

The human resources department memorandum on January 20, 2011 (No. 045/HRM-13/I/2011 about Daily Wages and

monthly salary structure of the workers, the lowest wage of workers of GPI in 2011 was Rp. 1.133.500/bulan) is available.

The structure of workers’ wages consist of wages, overtime / premium, company expense, allowance of rice, THR, bonus.

Based on the payroll, it is known that the minimum wage given to workers is Rp. 1,228,980 that is more than the minimum

wage of South Sumatra province, Rp. 1,048,440 as the Decision of the Governor of South Sumatra Province

(No.902/KPTS/DISNAKERTRAN/2010)

There is a Labor Agreement between the Co-operation Agency of Sumatra Plantation (BKS-PPS) and Riau Branch GAPKI

with DPD Federation of Agriculture and Plantation Workers Union All Indonesian Workers Union (SPSI-PD.F.SP.PP).

The company has provided shelter, education, clean water, health, and public facilities, include:

RJE and housing Mess: 1 unit of mess staff of; 6 units of home assistant; 14 units of G1 house; 200 units of G2 house.

Public buildings, 1 unit of elementary school building; 1 unit of secondary school building; 1 unit of Polyclinic;1 unit of

Mosque; 1 unit of Store Rations; 3 units of Security room;1 unit of Domestic Water Pump.

BYE, 1 unit of house manager, 3 units of House Assistant, 7 units of House G2 7; 90 units of House G2 (houses Workers),

2 units of Elementary school building, 1 unit of the Mosque, 2 units of the security room, 1 unit of Golf Badminton.

NAE, 3 units of House Manager, House Assistant / KTU, 3 Unit of Domestic Assistant, 187 G2 units of Domestic

Employees 187 G2 units, 1 unit of daycare, 1 unit of kindergarten school, 1 unit of Mosque.

KRE, 1 unit of G1 houses of manager, 3 units of assistant house, 32 units of G2 foreman's house, 160 units of G2 of house

of workers, 1 unit of Polyclinic, 1 unit of daycare,1 unit of kindergarten, 1 unit of Mosque.

MJE, 1 unit of house of manager,3 units of house of assistant, 7 units of G1 house, 40 units of G2 house, 1 unit of

polyclinic, 1 unit of mosque, 1 unit of water pump house,1 unit of barracks.

RJF, 1 unit of house of manager, 1 unit of assistant house, 4 units of G2 foreman's house G2, 10 units of G2 workers’

houses, 1 unit of Mill GM’s house mill GM.

There are also wells in housing which is used as a source of clean water.


ASSESSEMENT REPORT


The Company has instructed the parties to cooperate in this case, the contractor to comply with applicable laws in terms of

employment as stipulated in the letter agreement. For example, the employment agreement (No.

194/SPK-Lokal/KRE/VI/2010) between PT. GPI with CV. Dewa Sawit Mandiri for the rental of heavy equipment excavator

type of long arm Brand Komatsu, the clause of the agreement stated that the Second Party (CV. Dewa Sawit Mandiri) shall

comply with applicable laws in terms of employment as stipulated in the letter agreement


6.6

The employer respects the right of all personnel to form and join trade unions of their choice and to bargain

collectively. Where the right to freedom of association and collective bargaining are restricted under law, the

employer facilitates parallel means of independent and free association and bargaining for all such personnel.

The Company has a Code for Sustainable Plantation Management (No. Policy 724/TQEM-SPMS/09 dated August 27, 2010)

which covers Social Policy Plantation Upstream Indonesia to commit to the RSPO principles and criteria. The company is

expected to respect the rights of all employees to form and join unions in the community as their choice and negotiate

together. Companies that make the memorandum (recording) state to allowed the workers to accompany the unity of workers

as enshrined in the Law No. 13 Year 2003 on Manpower, in Article 104 (1) "every worker / workers' right to form and join trade

unions / labor unions". The name of the union to employees is "SPSI" and for the staff is "Staff Union of Plantation and Mill of

PT. GPI.

Recording of meetings of the workers and staff with the unions well documented that consists of meeting participants, meeting

place, the problems discussed and the results of the meeting. For example, meeting minutes of negotiation settlement of

industrial disputes / change payments Rice Supply of salary payments through for payment slip to the natural in PT. GPI

Karang Ringin Estate on March 14, 2011.


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 exPosted to hazardous working conditions.

The company has a policy regarding the requirement of worker's age stated in Jakarta Head Office Memorandum (No.

POD-UM-052/III/2010), the Prohibition statements in using underage labor according to the labor law, there is no labor who

works under (18 years).

Based on document review GPI, employment data shows that the company does not employ underage workers. It is stated in

the document check roll (employee master) which includes the initial start working age; all workers have fulfilled the

requirements including workforces age are over 18 years.


6.8

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

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

The Company has guidelines for Sustainable Plantation Management (No. Policy 724/TQEM-SPMS/09 dated 08/27/2010)

which listed in Social Policy. Upstream Plantation of Indonesia committ to the principle: All staff / workers should be treated

reasonably and fairly in case of recruitment, advancement, conditions and job description, regardless of race, degree,

ethnicity, gender, skin color, imperfections (disability), sexual orientation, and membership of the Company, political views,

religion and age.


ASSESSEMENT REPORT


The company provides opportunities and equal treatment in employment. This can be seen in the personnel data of

employees of PT. GPI included sex (male and female), occupation, last education (elementary-university), place / date of

birth, marital status (married / not married) and religion (Islam, Christianity, Hinduism).


6.9

Policy to prevent sexual harassment and all other forms of violence against women and to protect their

reproductive rights is developed and applied.

The Company has guideline for Sustainable Plantation Management (No. Policy 724/TQEM-SPMS/09 dated 08/27/2010)

which listed in Social Policy. Upstream Plantation Indonesia is committed to the principle: Develop and implement policies

to protect women workers from crime and sexual harassment; protect the rights relating to reproductive women. There is

also a gender committee formed in each estate to protect women.

GPI Central Clinic issued a policy on reproductive rights of women workers on July 1, 2010:

1. Provision leave of absence H1 (menstruation) for 2-day results of the examination administered by doctors and nurses;

2. Provision leave of absence H2 (pregnancy leave of absence) is calculated based on the end of H1 by a medical officer /

paramedic, leave of absence provisions H2: With gestational age 7.5 months for 1.5 months, after giving birth for 1.5

months, giving birth due to miscarriage will granted leave of 1.5 months after miscarriage / pregnancy;

3. For pregnant and lactating women workers, workers who are known as a pregnant or lactating in accordance with the

regulations and the examination the doctor / nurse then the woman worker ca not perform the work associated with the

use of chemicals, such as spraying pesticides and cultivate;

4. Workers must be protected women from sexual harassment.

The Company has conducted socialization mechanisms or procedures for the prevention of sexual harassment and employee

staff in the briefing. Sexual harassment policy is placed on the bulletin board so easy to read employees.

The company has implemented a policy protection of reproductive rights. For example in the Book Attendance of employees

in March of 2011 listed the name Suhaila, H2 given leave (maternity leave), 1.5 and 1.5 months before giving birth after birth

and the company of PT. GPI continue to pay wages accordingly.

The company has a complaints procedure regarding gender in the Gender Policy Implementation guidelines Minamas

Plantation (SOP No. 700/PD-KG/10 Policy) describes the reporting or fill out a complaint form and Members of Committee

for Gender, gender committee member which receives a complaint to the complaints committee chairman gender and

related unit manager, Chairman of the Committee for gender will form an internal investigation team, investigation of the

event should not exceed 2 working days after receipt of complainant or victim), the investigation report would reported and

forwarded to the local manager, the investigation report should contain the following topics: detailed data event, background

and chronology, fact finding, if the objective evidence of harassment that occurred enough then the unit manager will take

disciplinary action to the offender.


6.10

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

The supply base FFB for Palm oil mill come from the Estate. The scheme of KKPA small holders not included in the scope

of RSPO certification. Because the agreement between company with the farmers in the negotiations process.

Available contract with a local contractor which has agreed, some agreement regarding: payment no later than 30 days

since the first party (the company) received a written bill of the second party (contractor); both parties are willing to obey

signs K3, and existing traffic in the company.



ASSESSEMENT REPORT


6.11

Growers and millers contribute to local sustainable development wherever appropriate.

Companies can show footage contribution to the local governments and communities around the estate in a structured and is

divided into two categories (tax and CSR). The types of contributions are: (1) Land and Building tax (2) the vehicle tax, (3) tax

heavy equipment, (4) income tax, (5) implementation of CSR programs that include education, clean water, social, religious,

days great the independence of Indonesia and assistance with personal care / development of infrastructure. The preparation

of the CSR program in 2011 has been consulted and communicated with the village of Talang Piase (May 14, 2011), (2)

Dusun III Talang Ilo (May 27, 2011), (3) village of Napal (29 May 20 110), (4) village of Karang ringin II (May 26, 2011), (5)

village of Rantau Kasih (May 13, 2011). But It is recommended that in preparing the plan of Corporate Social Responsibility

(CSR)-related contributions to local development company, should be based on the identification of people's basic needs

(basic need identification) participatory so it produces a clear assistance and CSR budget by taking the scale of priorities. but

to improve the performance of the company issued the CAR-2011.35 as follows: It is recommended that in preparing the plan

of Corporate Social Responsibility (CSR)-related contributions to local development company, to be based on the

identification of people's basic needs participatory resulting the form of aid and budget CSR clearly by considering the scale

of priorities.

6.11.1 Status : see CAR-2011.35 with the category Comment for Action

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.

In the revised document RPL / RKL operations PT Guthrie Pecconina Indonesia, November 5, 2010 (No. 1198 of 2010) has

covered the entire area of GPI and palm oil mill. In the area of PT GPI that includes the 5 (five) estate there is no development

of new plantations. GPI area of 13961.35 ha has been set according to the statement area.

Status : Not Applicable

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.

In the area of PT GPI that includes the 5 (five) estate there is no development of new plantations. GPI area of 13961.35 ha has

been set according to the statement area.


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.




7.4

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





ASSESSEMENT REPORT


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.




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.

The company has been doing some direct action on the field associated with the environmental impact assessment:

- Reduced use of chemicals (pesticides) (criterion 4.6) e.g. integrated pest management,

- Minimizing the environmental impact (criterion 5.1) e.g.: growers types vertifer grass and Neprolephis for erosion

Mitigation,

- Reduction of waste (criterion 5.3) e.g.: utilization of waste (shells, Fiber, slender blanks and liquid wastes).

- Pollution and emissions (criterion 5.6) with routine care such as machinery,

- The social impact (criterion 6.1) e.g.: CSR program,

The Company has provided 2 (two) types of documents for monitoring environmental and social parameters, namely: of

documents Environmental Management and Monitoring Plan (RKL / RPL), and HCV Management Program of documents

(High Conservation Value). RKL / RPL plan also includes monitoring of pollution and emissions, water quality, and

development of wildlife. While of documents management program HCV include: monitoring the implementation of the

boundary, forest planting, and monitoring wildlife.



ASSESSEMENT REPORT


3.2. Summary of Assessment Report of Supply Chain

Clause Requirements Supply Chain Model

IP SG MB

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) Complete and up to date records and reports that demonstrate compliance with

these requirements (See 5 for more details) and are 100% verifiable by auditor.

c) 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.

Yes Yes Yes

a) PT Guthrie Pecconina Indonesia (GPI) has a standard operational procedure (SOP)

Product Traceability which includes all elements required at each stage of the process

from receipt of the fruit (FFB), the production process, dispatch, and sales (bulking

station) to delivery the product. Based on these procedures in clause 5.3.3, claims

supply chain is controlled through Mass Balance model in which the amount and origin

of RSPO certified FFB received can be identified on the form SPB (Letter of Acceptance

Fruit) and Daily Production Reports.

b) RJF has been providing and implementing revenue and expenditure recording material

at all stages of palm oil production process, from receipt of FFB (Fresh Fruits Bunch) to

dispatch. The recording process is done every day activities, while recapitulation is

poured into a weekly report, monthly report, Report of Three Monthly, and Annual

Report.

c) The Company has established Mr. Paido Tua Tumanggor (Factory Manager) as the

person responsible and have authority for the implementation of supply chain

requirements to conform with all applicable requirements (source: SOP Traceability of

Products). There is evidence in the form of Attendance and training materials that show

that Mr. Paido Tua Tumanggor have been trained in the recognition and understanding

of systems and standards for Supply Chain on June 20, 2011.

√



ASSESSEMENT REPORT


2 Purchasing and goods in

2.1

The facility shall ensure that RSPO certified palm oil is identified. This shall include at

minimum the following:

(a) Order of RSPO certified palm oil product shall specify the requirement for RSPO

certification in purchase orders. It shall be ensured that the origin of the material until

the previous processing facility in the supply chain can be verified.

(b) The facility receiving RSPO certified palm oil shall confirm that the RSPO certified

palm oil delivered is the same as that specified in the purchase order and the

accompanying trade and shipping documentation from the supplier and that has been

shipped by the supplier.

(c) The facility receiving RSPO certified palm oil shall ensure that the validity of

accompanying trade and shipping documentation is verified prior to accepting the

RSPO certified palm oil

Yes Yes Yes

a) RJF is a palm oil mill so it does not make purchase oil and palm oil products from the

outside. The relevant activities to this indicator are palm oil shipments, which was from the

factory (RJF) to the loading point (bulking station) and from the loading point to the

customer. Stated in clause 5.5.6 of the Product Traceability Procedure, that every CPO

which was sent to bulking comes with a Letter of Delivery (SPB), among others, contain

information about the categories of material that must be verified by the receiving officer

CPO bulking. However, this procedure cannot be implemented because RJF have not had

RSPO certificates.

b) RJF do not buy crude palm oil, material received only a of FFB. At each receiving of FFB,

according to product traceability procedures, implemented inspection mechanism Letter

Fruit by the designated officer, to ensure the source of the fruit (Estate, Division, and

Block) and other information required.

c) Bulking in GPI is only used to hold crude palm oil production of the GPI. Every palm oil

shipments from the factory to bulking included SPB (Cargo Letter) informing the company

name, name of Mill, net weight, quality CPO, vehicle number, driver's name, seal numbers

and hours set out from MCC (SOP Product Traceability Item 5.5. 6)

√


2.2

A mechanism for handling non-conforming material

Yes Yes No

Contained in, Product Traceability procedures, item 5.3.7 which states that, every FFB which

received have been checked for quality. If the RSPO certified of FFB received is not in

accordance with the SPB (Letter of delivery), these materials will be set aside and confirmed

to the Division of the estate that send or categorized as non-certified material.

√



ASSESSEMENT REPORT


3 Sales and goods out

3.1

The facility shall ensure that all sales invoices issued for RSPO palm oil delivered include

the following information:

(a) The name and address of the buyer

(b) The date on which the invoice was issued

(c) A description of the product

(d) The quantity of the product delivered

(e) Reference to related transport documentation

Yes Yes Yes

Based on the example: Delivery Order (No. 00170/00165/06/11/L-GPI-MKS), issued on June

21, 2011, proved that the RJF had included all information of required, except the category of

material. The auditor understood that the categories of material was not included on invoices

and documents transport of crude palm oil, because GPI had not been certified RSPO.

However, to encourage them to do after RJF get the RSPO certification, issued

noncompliance CAR-2011.36

X

Status : See CAR-2011.36 with the category Minor

4 Processing

4.1

The facility shall only choose a supply chain model in case where the RSPO certified palm

oil has been verified to meet the intent and the requirements of the supply chain model at

the previous stage of the supply chain.

Identity Preserved → Segregated → Mass Balance → Non RSPO Certified Palm Oil

Yes Yes Yes

Described in clause 5.3.3 of the traceability procedures, that RJF will implement traceability

systems by using the Mass Balance Supply Chain Model. See also explanation in 1.1.a.

Percentage of RSPO-certified material used for the production process, can be identified on

the Daily Production Report which records information of FFB, FFB sources of received and

used for the production process, the number and quality of CPO produced, and OER (Oil

Extraction Ratio).

√


4.2

The facility shall ensure that the RSPO certified palm oil is uniquely identifiable to the mill

and its supply base and is kept physically isolated from all other oil palm sources in its

facility.

Yes No No

Not Applicable for Mass Balance System. NA



ASSESSEMENT REPORT


4.3

The facility shall ensure 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 and

necessary measures to ensure the objective of 100% segregated material is reached.

The system should guarantee the minimum standard of 95% segregated physical material.

Yes,

see 4.2

Yes No



5 Record keeping

5.1

The facility shall maintain accurate, complete, up-to-date and accessible records and

reports covering all aspects of these requirements.

Yes Yes Yes

The company already has a record and report daily, weekly, monthly, quarterly, and yearly,

which among others includes information about the number of receiving FFB, FFB sources,

the number FFB processed, and the number palm oil produced and sold. All types of reports

is an important analysis tool for decision makers within the internal scope of the company,

and as the basis for the preparation of reports for government agencies related to the

accuracy, completeness, and will always be up to date.

√


5.2

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

Yes Yes Yes

Described in Section IV Product Traceability Procedure that all documentary evidence from

receipt of the fruit to the CPO and the KERNEL sales recorded for 5 (five) years.

√


5.3

(a) The facility shall record and balance the volume of RSPO certified palm oil on a

three-monthly basis.Used in processing

(b) When the Mass Balance model is used, a facility can only deliver Mass Balance sales

from a Postitive stock. However, a facility is allowed to sell short

The Company has implemented the Three Monthly Report to record all receipts and

expenditures of RSPO-certified materials including palm oil.

√


5.4

The following trade names should be used and specified in purchase and sales contracts.

IP SG MB

Available Daily of Process Control received which record number of FFB, FFB processed,

capacity, and delivery.

√



ASSESSEMENT REPORT


5.5

The facility shall provide documented proof that the RSPO certified palm oil can be traced

back entirely to the palm oil mill.

Yes No No



5.6

The facility shall provide documented proof that the RSPO certified palm oil can be traced

back to only certified segregated material

No Yes No



6 Training

6.1

The facility shell specifies and provides the training for all staff as required to implement the

requirements of the Supply Chain Certification Systems.

Yes Yes Yes

There is evidence Chain System Certification training for key personnel RSPO supplies.

√


6.2

The facility shall keep records of the training provided to staff in relation to implementation

of these requirements.

Yes Yes Yes

Records of training are available in the form of supply chain Attendance List dated June 20,

2011, followed by five key personnel including Paido Tua Tumangga (Manager of RJF),

Parulian Sinaga (Assistant of PSQM), Datok Chairullah (Assistant of Process), Juliana

Damanik (Assistant of Maintenance), and Eko Purwanto (Head of Administration RJF).

Instructor: Khosiin (Staff of PSQM)

√


7 Claims

7.1

The facility shall only make claims regarding the use of or support of RSPO certified palm

oil that are in compliance with the RSPO Guidelines for Communication and Claims (see

Annex 10).

Yes Yes Yes

Products that claimed to be RSPO-certified products by GPI are only products that have

met the production process according to the procedure RJF product traceability.

√



ASSESSEMENT REPORT


3.3 Checklist Conformity of Certificate and Logo Use (Only apply for Surveillance Assessment Report)

1. Evidence of permission or approval certificate and logo from Certification Body which

submitted by Client X or√

Not Applicable

2. Implementation of certificate and logo used by Client comply with size and type (shape)

against Guideline of Logo Use X or√

Not Applicable

3. Implementation of Certificate and Logo is not used on product

X or√

Not Applicable

4. Controlling of Certificate and Logo, including withdrawing inappropriate logo.

X or√

Not Applicable


ASSESSEMENT REPORT


3.4 Summary of Time Bound Plan Verification of the RSPO Certification (Only apply for Surveillance

Assessment Report)

Total companies visited (0.8 √Y) Where Y is the total of one holding company

The company name :

1.

2.

3.

Visit date :

2.1

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

regulations.

Not Applicable

2.2

The right to use the land can be demonstrated, and is not legitimately contested by local

communities with demonstrable rights.

Not Applicable

6.3

There is a mutually agreed and documented system for dealing with complaints and

grievances, which is implemented and accepted by all parties.

Not Applicable

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.

Not Applicable

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

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.

Not Applicable

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.

Not Applicable


ASSESSEMENT REPORT


3.5

3.5.1

Summary of Non Conformance and Noteworthy Positive Components

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

No Ref

Std

Non Conformance Grade Area Corrective Action

Request

Time

Limits

Date and Observation Status Closing

Date

2011.01 1.2.1 Consideration should be

given, the Company

determines or specifies the

type of information or

documents that can and

cannot be accessed by the

public related to

commercial confidentiality

or where disclosure of

information would result in

negative environmental or

social.

CFA Office Companies should

determine the type of

information or documents

that can and cannot be

accessed by the public

related to commercial

confidentiality or where

disclosure of information

will result in negative

environmental or social.

Before

ST2

21/06/2011

The company has been providing

Information Access Rights SOP /

Documents (RSPO/1.2.1/PI)

presents the types of information

that can be accessed by

stakeholders, including: HGU,

SIUP / IUP / SITU. Licensing,

HCVA, SIA, wastewater

applications, documents,

Occupational Safety and Health

(Annex 2).

Closed 21/06/2011

2011.02 2.1.2 Evaluation period

stipulated regulations and

regulatory changes in the

minimum period of 6

months, but the recordings

of the evaluation and

adjustment of the changes

have not been updated.

Companies need to clarify

the time updating and

evaluation on the list of

rules and evaluation of

compliance with relevant

regulations.

CFA Office Companies should create

record of evaluation and

adjustment of regulatory

changes in accordance with

specified period of at least

6 months.

Before

ST2

21/06/2011

The company revised Section E

point 7 of SOP No.

010/GPI-PC/II/11 Control Notes -

'evaluation of regulations and laws

conducted 6-month'. This

statement is intended to ensure

that all regulations referred are still

valid (current).

There is evidence of the last

updating regulations, dated March

31, 2011 Matrix Evaluation of

Legal and Regulatory Compliance.

Closed 21/06/2011


ASSESSEMENT REPORT


2011.03 2.2.3

2.2.4

The company has

completed or is completing

land issues with the parties’

relevant stakeholders

including through

compensation. It has not

fully shown the evidence of

action taken in land conflict

resolution in a participatory

accepted by the parties,

including evidence of

settlement of land

acquisition by the Free Prior

and Informed Consent.

NC Office

and

estates

The Company shall have the

recorded evidence and

maintain records of actions

taken in the resolution of

land conflicts in a

participatory accepted by the

parties, including records of

land acquisition act to Free

Prior and Informed Consent

Before

ST2

20/06/2011

The company has shown evidence

of compensation (compensation)

of land, including land claims on

behalf of Rafi bin Rozak (the

villagers of Karang Anyar - file

folder 321), compensable in 1997,

a statement of charges, handover

photos, map the location of land

compensation , and Minutes of

compensation, and evidence Land

Ownership Handover.

Conflict resolution process is done

through several stages, including

stages of the negotiation process

to establish the types and amounts

of compensation.

Closed 20/06/2011

2011.04 2.2.5 Procedure or conflict

resolution mechanisms that

are available have not been

shown have been accepted

by the parties, although the

settlement of the conflict

have been undertaken by the

Company

NC Office

dan

Estates

The company must provide

evidence of conduct or

procedure of conflict

resolution mechanisms that

are available based on

acceptance of the parties.

Before

ST2

22/06/2011

There is evidence that the

company has performed the

procedure or mechanism of

conflict resolution that is

acceptable to all parties; invoices

of payment, the handover photos,

map locations, and Minutes of

indemnity, and evidence of Land

Ownership Handover is known by

the village or district.

Example: proof of the claim

settlement date of March 26, 1997

Closed 22/06/2011


ASSESSEMENT REPORT


on land in Block 22 in the name of

A. Rafi Bin Rozak - the villagers of

Karang Anyar. The amount of

compensation worth Rp.

4,000,000 (four million rupiah), a

transcript of compensation

available (No. 146/BIK

22/GPI-I/1997), photo

documentation of damages, and

the invoices of compensation.

2011.05 4.3.4 Peat land management

does not specifically

describe the measurement

results subsidence peat

soils, although all the results

of measurements water

level monitored and

managed.

NC to

be

CFA

Office

and

Estates

The company must conduct

the management of peat

lands with peat soil

subsidence measurements,

although all the results of

measurements of water level

monitored and managed, in

an effort to drink decreased

the soil surface.

S1 21/06/2011.

The company has made efforts

peat soil measurements by

installing Piezometer, in block

work area such as in KRE 0f 8

units on April 27, 2011. The

results of peat soil degradation

will be monitored every 3

months. However, it is

recommended to review the

number of samples specified

locations to consider widely

representative and peat type.

Open

2011.06 4.4.1 The company do not have a

program for the

management and

realization the buffer zone

on each estate to inform the

time frame, and the length

of the river area, although

NC Office

and

Estates

The company must make

the program and the

realization of the Buffer zone

management in each estate

to inform the time frame, and

the length of the river area,

for the protection of water

Before

ST2

21/06/2011.

Available programs and

realization Buffer Zone to each

estate which informs the time

frame, and the length of the area

of the river water.

Closed 21/06/2011


ASSESSEMENT REPORT


there are some policies

such as the activities

marking the buffer zone

boundary and installation of

sign boards

flow and wetlands, including

maintaining, and maintain

riparian areas of the river.

2011.07 4.4.2 Have not available evidence

represented the area of

water quality monitoring, to

the other areas outside the

RJE and MJE, is associated

with the test results of river

water and groundwater, in

the area of NAE, KRE, and

BYE, and the results of

water quality measurements

should be complemented

with quality standard as a

reference standard.

NC Office,

Estates

and Mill

The Company shall have the

recorded evidence of water

quality monitoring of rivers

and ground water (water

management) that

represents the entire area of

the garden and water quality

measurements should be

complemented with quality

standard as a reference

standard.

Before

ST2

21/06/2011.

Already available evidence testing

results of River Water and Wells

employee housing, conducted by

the Environmental Laboratory

UPTB BLH South Sumatra. Test

results compared with standard

(Permenkes No.492/MENKES /

PER / IV / 2010). Example: The

results of measurements of water

quality Sei Senaro in Block P48

and Block R 49.

Closed 21/06/2011

2011.08 4.5.1 The evidence has not

available IPM program

evaluation, to determine the

effective action related with

controlling pests and Plant

Diseases.

CFA Office

and

Estate

The Company is

recommended conduct of

evaluate IPM programs to

determine effective

measures relating on Pest

and Plant Disease Control,

as the basis for updating the

IPM programs.

Before

ST2

21/06/2011.

The company has shown

evidence of the IPM program

evaluation

includes the results of control:

leaf-eating caterpillar pests, rats,

ganoderma, termites, and oryctes

in each estate, it is aims to ensure

the effectiveness of control

Closed 21/06/2011

2011.09 4.6.5 There is the use of

chemicals (pesticides) are

limited to types of klerat

NC Office

and

Estates

The company must have

documentation of policies to

reduce or eliminate the use

Before

ST2

21/06/2011.

The company has a policy to stop

the use of chemicals classified as

Closed. 21/06/2011


ASSESSEMENT REPORT


(Active Ingredients

Brodifacum) it shows The

company has not been

consistency abide by the

rules applicable, related to

the use of chemicals

classified as hazardous

pesticides that WHO type

1A and 1B

of chemicals that are

classified as WHO type 1A

and 1B is Klerat (Active

Ingredients Brodifacum).

WHO type 1A and 1B,it is Klerat

and Ratgone (contain active of

Brodifacum) form of Memorandum

chairman SOU 22 (PT GPI) is in

the know by GM (No.

01/Ket-SOU/05/2011), about

Usage of Materials Active

Brodifacum. Based on document

review and field visits are not

found use Klerat and Ratgone.

2011.10 4.6.2 Some of the estate have

not been able to show

information area and the

frequency of the applied

chemical pesticides, such

as RJE and MJE

NC Office

and

Estates

The company should have a

recording that informs the

use of chemicals related

pesticides active ingredients

used, the area that was

applied, the amount of use

per hectare and the

frequency of the applied

chemical pesticides.

Before

ST2

There is a document recording the

use of herbicides, weed control

plan and the realization of the

Chemical Spraying (Chemical

Spraying of : path, road harvesting

and Collection place results) in the

period 2010-2011 in each estate

that inform the amount of

pesticides used, the applied area,

and frequency of every 4 months.

Closed 21/06/2011

2011.11 4.6.3 Dose herbicides used have

not been compared with the

reference dose for every

types of chemical

herbicides.

NC Office

dan

Estates

The company must have

documented evidence that

the herbicides used in

accordance with the

reference dose for every type

of chemical herbicides, such

as directions on product

labels.

Before

ST2

21/06/2011. The company has the use of herbicides each estate documents informing producers Dose / ha (dose determined in accordance with the pesticide label) and the Use of the substance per ha. For example Herbicides Starene in Mangunjaya Estate dose manufacturer / Ha 0.25 to 1.00 and use of materials / ha: 0.33 liters / ha.

Closed 21/06/2011


ASSESSEMENT REPORT


2011.12 4.6.4 Hazardous waste found in a

temporary storage area (B3

Waste Warehouse NAE) is

still kept more than 90 days.

NC Office;

Estates

and Mill

Companies must

consistently perform waste

shipping hazardous

materials in the collection

area of the company to

licensed hazardous waste

materials, before exceeding

the shelf life for 90 days. And

well done recording of such

activities in accordance with

legislation and regulations.

Before

ST2

21/06/2011.

The company has showed

evidence of handover Dangerous

waste to a licensed collector (CV

Bumi Khatulistiwa) in Tanjung

Enim, South Sumatra - among

others: No.024/GPI-BYE/VI/2011

Letter dated June 3, 2011 (type of

waste cans, pesticide packaging ,

used oil, knap sack, the former

Fire extinguisher, battery, air

cleaner, oil drums), and Letter No.

015/BYE/III/2011 April 11, 2011

(jerry cans, packaging herbicides,

used oil, drums, knap sack, flat,

battery, air cleaner).

Based in a visit on NAE of

Hazardous waste storage, and the

results of consultation with the

Head Office of Environment and

Head of the Environmental Impact

Analysis found that hazardous

waste is stored more than 90 days

is not be a problem with the terms

isolated and certainly not out to

contaminate the environment.

Closed 21/06/2011

2011.13 4.7.10 Available data on

monitoring of work

accidents each estate and

CFA Office;

Estetes

and Mill

The company should have

to review the results of

monitoring work accidents

S1 23/06/2011

The company has made efforts to

identify causes of work accidents

Open


ASSESSEMENT REPORT


mill for every month,

including evaluation, but

need to be reviewed the

root causes of the causes of

occupational injuries, so

that remedial action for the

incidents of work accidents

do not happen again.

Examples of occupational

accidents in the BYE on

03/03/2011 the victim

affected by Chisel.

related to the root causes of

accidents so that corrective

action for the incidents of

work accidents do not

happen again.

is poured into the form Work

Accident Monitoring. However, it

is recommended, that The

company can be more careful in

distinguishing 'Work Accident

Cause' with 'type of work

accidents' that can recommend

appropriate corrective action, and

to can prevent the same events.

Example: in case of work

accidents in March 2011 in BYE,

cause of accident is "exposed

Chisel", should have it was a 'type

of accident'

2011.14 4.8.1 There is no evidence that

the company has a training

program for employees and

contractors, outside the

jOSH training programs and

training for farmers KKPA.

NC Office;

Estetes

and Mill

Companies should provide

continuous training program

document for staff,

employees, contractors and

farmers KKPA accordance

with their respective

competence.

Before

ST2

23/06/2011

The Company has Matrix Training

Program for staff and employees;

contractors and farmers that is

based on the identification of

training needs (competence

Positions).

Closed 23/06/2011

2011.15 4.8.2 The company has made a

training record that has

been followed by

employees, but training is

not in accordance with the

employee training program

based on competence.

CFA Office;

Estetes

and Mill

The company should record

the training that has been

followed in accordance with

the employee and employee

training programs based on

their competence.

Before

ST2

The company has showed the

realization of the implementation

of employee training record in

accordance with a program which

has been prepared.

Example: Training on behalf of

Reni (Nurses - KRE), P3K training

in March 2011.

Closed 23/06/2011


ASSESSEMENT REPORT


2011.16 5.1.1 In the evaluation report RKL

/ RPL described the efforts

by Company, but the

methods of monitoring and

analysis of the disturbed

flora / fauna and public

unrest still is not enough to

be monitored, analyzed and

evaluated to demonstrate

continuous progress

(continual improvement).

NC Office;

Estetes

and Mill

Companies should review

the methods of monitoring

and analysis of the disturbed

flora / fauna and public

unrest so inadequate to be

monitored, analyzed and

evaluated to demonstrate

continuous progress

(continual improvement)

Before

ST2

23/06/2011

The company has provided

procedures for monitoring of flora

and fauna Number:

01/GPI-SOU/11 explains the

frequency monitoring of flora in the

area of HCV is done once in 5

(five) years, fauna monitoring once

a year.

Section 4.0 describes the fauna

monitoring transects made

through the system, and

observation of flora conducted

through a system of sample plots.

The last monitoring of flora and

fauna conducted in April 2011.

Monitoring of public unrest is done

once a year using the method

questioner.

Closed 23/06/2011

2011.17 5.2.2

5.2.3

GPI has made HCV

management programs for

each estate (2010-2011),

but the program is

presented by category of

HCV has not been identified

in each of estates according

to HCV-assessment

document 2010 or matrix

management plans and

monitoring, for example:

NC Office

and

Estates

PT GPI should present the

HCV management program

for each estate (2010-2011)

with the steps that

correspond to categories of

HCV identified in each

document according to

estates and HCV

assessment 2010 or matrix

management plans and

monitoring.

Before

ST2

21/06/2011.

The program details the

management of HCV period July

2010-June 2011 have been

provided for each estate (Bumi

Ayu, Rantau Panjang, Napal,

Karang ringin, and Mangun jaya)

describes in detail the type of

HCV, the person in charge, review

period, and procedure execution

time.

Closed 23/06/2011


ASSESSEMENT REPORT


HCV5 (springs) in Mangun

jaya Estate, HCV 1.1. / 4.1

riparian reserve in the RJE

Still there are some activities that

have not been implemented

according to planned target date.

For example, in the forest planting

HCV 1.1, 1.4, 5 at Bumi Ayu

Estate, but the company has

made a reschedule, buffer zone

year 2011/2012 rehabilitation

program which will begin in July

2011.

2011.18 5.2.4 Management of HCV in

some Estates have been

carried out direct action in

the field of applied, e.g.

installation of sign boards;

and performed HCV

socialization to employees

in each estate by means of

briefings in the morning, for

example: maintenance

foreman morning briefing,

employees should not be

sprayed in the area of the

buffer zone; Facility bulletin

board not be hunt protected

species, however evidence

of socialization to the

community for the treatment

of HCV is not yet available.

NC Office

dan

Estate

Management of HCV in

some estates have been

carried out direct action in

the field of applied, e.g.

installation of sign boards;

and performed HCV

socialization to employees in

each estate by means of

briefings in the morning, for

example: maintenance

foreman morning briefing,

employees should not be

sprayed in the area of the

buffer zone; Facility bulletin

board not be hunt protected

species, however companies

should also conduct

socialization to the

community for the

management of HCV and

Before

ST2

21/06/2011

Available records and the

realization of the buffer zone

program year 2010/2011 and

evidence implementation of

socialization in May 2011 include:

minutes of socialization with

people around plantation for the

entire estate, photos, and

attendance lists.

Socialization material includes

program management of HCV,

protection efforts taken

(information boards, fencing

springs, etc.).

Closed 23/06/2011


ASSESSEMENT REPORT


activities are recorded and

the records are maintained

2011.19 5.2.5 GPI has set the officer

executing a monitoring

program HCV, and HCV has

conducted internal training

for every person in charge

of each estate on April 8,

2011, but not yet enough

evidence to charge of HCV

in the RPE have been

trained in HCV, as a

requirement for the

competence of officers

HCV.

NC Office

dan

Estates

PT GPI should conduct

training for all officers in

charge of HCV and then

training was recorded and

records maintained of

training activities, as

evidence that specialized

and trained personnel

available in monitoring the

management of HCV

Before

ST2

21/06/2011

Evidence of implementation of

training for all officers HCV in

each estate has been available,

for example on behalf of Abdul

Arpan, the implementation of the

training on May 10, 2011.

Closed 21/06/2011

2011.20 5.3.2 The company has identified

waste and manages waste

through the waste matrix

identification and

identification of exhaust

emissions.

During a visit to the field in

the Napal Estates, the

Company has made plans

waste handling of

hazardous materials, but

related with some of the

handling of waste is not

hazardous materials, such

as scrap metal and old tires,

NC Office

dan

Estates

The company should

manage a waste

management plan

documented in the form of

SOP and implemented for

the handling of waste is not

hazardous materials such as

scrap metal and old tires.

Before

ST2

21/06/2011

Handling of Hazardous waste is

not set in SOP Number:

7307/GPI/11 dated May 15, 2011.

Section 6.8 of the SOP states that

the waste is not hazardous

materials that have been collected

will be sold to third parties.

Closed 23/06/2011


ASSESSEMENT REPORT


the Company has not

manage in SOP handling of

hazardous waste is not

waste.

2011.21 5.3.3 Based on the results of the

visit in the warehouse of

hazardous materials in the

NAE there are some things

that have not been in

accordance with the SOP

include: Enumeration

packaging of pesticides has

not been done, the

completeness of the sign /

symbol on the package

based on its characteristics.

In addition, there is still

Dangerous waste materials

stored more than 90 days

and has not been sent to the

POM Warehouse Waste

storage and sent to licensed

suppliers (CV Bumi

Khatulistiwa).

NC Estates The company should have

consistently implement

SOPs Hazardous waste in

accordance with reference

materials applicable, for

example: do enumeration

pesticide packaging

complement sign / symbol

flammable store used oil in

place, do not store more

than 90 days of Hazardous

Waste

Before

ST2

23/06/2011

The company has showed

evidence of handover Dangerous

waste to a licensed collector (CV

Bumi Khatulistiwa) in Tanjung

Enim, South Sumatra - among

others: No.024/GPI-BYE/VI/2011

Letter dated June 3, 2011 (type of

waste cans, pesticide packaging ,

used oil, knap sack, the former

Fire extinguisher, battery, air

cleaner, oil drums), and Letter No.

015/BYE/III/2011 April 11, 2011

(jerry cans, packaging herbicides,

used oil, drums, knap sack, flat,

battery, air cleaner).

Based in a visit on NAE of

Hazardous waste storage, and the

results of consultation with the

Head Office of Environment and

Head of the Environmental Impact

Analysis found that hazardous

waste is stored more than 90 days

is not be a problem with the terms

isolated and certainly not out to

contaminate the environment.

Closed 23/06/2011


ASSESSEMENT REPORT


Observations to the waste storage

warehouse Dangerous Materials;

there is evidence that the symbols

Dangerous Materials and waste

dangerous materials have been

implemented in accordance with

the Kep-01/Bapedal/09 / 1995 on

the Procedures and Technical

Requirements for Waste Storage

and Collection of Dangerous

Materials and waste dangerous

materials.

2011.22 5.4.1 There are records of fuel

consumption of fibers (Ton)

and shells (Ton) each

month are used to process

the FFB (Ton). However the

records of renewable

energy fiber and shell (Ton)

has not been analyzed by

comparing the efficiency

standard or budget set, i.e.

energy per tone of CPO or

energy per tone of FFB.

NC Mill Company should provide

proof of recordings

monitoring and analysis of

energy efficiency renewable

fiber, and shell (Ton) per

tone of CPO or per ton FFB.

Before

ST2

22/06/2011

Records of monitoring and

analysis of renewable energy

efficiency (fiber and shell) and the

results of the analysis have been

available, the average use of fiber

and shell 2010/2011 period of 0.46

tons / tons of CPO (higher than the

budget of 0.44 tons / tons) so

increasing use of fiber and shell to

reduce the use of diesel fuel.

Closed 22/06/2011

2011.23 5.4.2 The company has been

taking notes or recording

the use of diesel fuel for the

generators of each month at

Mill and estates, but have

not provided evidence

NC Mill and

Estates

The company has been

taking notes or recording the

use of diesel fuel for the

generators of each month at

Mill and estates, but have

not provided evidence

Before

ST2

23/06/2011

Records of diesel fuel usage and

analysis have been available for

the period 2009/2010 and

2010/2011. Monitoring results

showed the use of diesel fuel as

Closed 23/06/2011


ASSESSEMENT REPORT


analyzed by comparing the

fuel efficiency of productivity

(Ton CPO or Ton FFB)

analyzed by comparing the

fuel efficiency of productivity

(Ton CPO or Ton FFB)

follows:

2009-2010: 8.72 l / tons of CPO

2010-2011: 6.45 l / tons of CPO

so that the level of efficiency

reached 26.03% (reduced use of

diesel 2:27 l / tons CPO)

2011.24 5.6.3 Need to be considered by

the Company to make the

effort and improvement

efforts against pollution and

emissions arising though

still below the quality

standard

CFA Office The company should have a

record to make the effort for

improvement of the pollution

and emissions arising

though still below the quality

standard.

Before

ST2

22/06/2011

The company has shown record to

reduce the emissions and pollution

through the construction of the

furnace in the dust collector are

cleaned every day; and preventive

maintenance efforts to boilers and

generators every week in the form

of: cleaning the boiler, generator

cleaning, maintenance (including

oil changes at regular intervals)

Closed 22/06/2011

2011.25 6.1.2 Based on reports the

Environmental Management

Plan (RKL) and

Environmental Monitoring

Plan (RPL), yet available

evidence of the Company

has record management

plan and monitoring of

social impacts with the

participation of affected

communities periodically.

NC Office Company should be able to

show record management

plan and monitoring of social

impacts with the

participation of affected

communities periodically.

Before

ST2

23/06/2011

The company has a logbook to

record incoming and outgoing mail

as well as complaints of negative

impacts caused by corporate

activities. Complaints received will

be processed and monitored

according to applicable

procedures, such as procedures

for handling complaints Number:

RSPO/6.3/KKM.

Closed 23/06/2011

2011.26 6.2.1 SOP consultation and

communication with the

NC Office Procedures of consultation

and communication with the

Before

ST2

22/06/2011


Closed 23/06/2011


ASSESSEMENT REPORT


community are available,

but its formulation or the

application has not been

made to involvement of

local communities and the

parties affected or other

interested parties.

community should be

prepared or implemented

with the involvement of local

communities and the parties

affected or other interested

parties.

of socialization Procedure

Communication / Consultation with

the Community (SOP:

RSPO/6.2/KKM) around the

estates, including: (1) Talang

Piase Village (May 14, 2011), (2)

Talang Ilo (May 27, 2011) (3)

Napal Village (29 May 20 110), (4)

Karang Ringin II Village (May 26,

2011), (5) Village Love Overseas

(May 13, 2011).

Records of socialization activities

consist of the minutes, the material

provided, photo documentation,

and list of attendees.

2011.27 6.2.2 List of stakeholders has

been available which

consists of name / agency,

job title, address, phone /

office / hp. However, record

the complete address of

stakeholders is still

incomplete especially

address the village level

stakeholders

CFA Office The company should

complete the list of

stakeholders that have been

prepared with the full

address of the identity of

stakeholders especially at

village level

Before

ST2

22/06/2011

The Company has completed all

stakeholders address listed in full.

Example: Head of village Karang

Ringin II, on behalf of Marzuki,

addresses Dusun 2, No. 87

Village of Karang Ringin II,

sub-district of Lawang Wetan,

District of Musi Banyuasin, and

Phone Number to call.

Closed 22/06/2011


ASSESSEMENT REPORT


2011.28 6.2.4 The Company has

appointed or have a social

worker is responsible for

consultation and


community, namely Ahmad

Yani, but personally have

either not able to show

proof of the appointment /

establishment (Decree

letter) and the job

description not yet available

CFA Office Companies should consider

personal responsibility for

consultation and


community can show

evidence of the appointment

/ establishment (Decree

Letter) and the available job

description.

Before

ST2

22/06/2011

The company has shown Decree

Letter No. 001/Mgr-SK/III/2011 on

March 31, 2011 concerning the

appointment of personnel

responsible for consultation and


community on behalf of Ahmad

Yani. The letter describes the

duties and responsibilities of

personnel, among others: (1)

Handles the aspect of social; (2)

Handles land issues, (3) Public

Relations of PT. GPI.

Closed 22/06/2011

2011.29 6.3.1 Complaint resolution

mechanisms (dissatisfaction

can be derived from the

internal / employee and

external) have been

available, but have not

available evidence of that

the mechanism is arranged

and / or received with

communities around the

affected for example:

complaints mechanisms

that can be resolved

through joint consultative

mechanisms (Joint

Consultative Committees.

NC Office Company should prove the

grievance and dispute

settlement mechanisms

developed and / or accepted

by all parties and resolve

disputes in an effective,

timely, and settlement

measures

Before

ST2


of compensation (compensation)

of land, including land claims on

behalf of Rafi bin Rozak (the

villagers of Karang Anyar - file

folder 321) are compensable in

1997, a statement of charges,

handover photos, map the location

of the compensable, and Minutes

of indemnity, and Proof of Land

Ownership Handover signed by all

parties to the conflict and

witnessed by local government

officials (Village Head or Head of

sub district). Conflict resolution

process is done through several

Closed 20/06/2011


ASSESSEMENT REPORT


stages, including stages of the

negotiation process to establish

the types and amounts of

compensation.

2011.30 6.11.1 Records of the company's

contribution to regional

development has not been

recorded properly

NC Office The company should

prepare record company's

contribution to regional

development in a structured

Before

ST2

22/06/2011

Companies can show record

contribution to the local

governments and communities

around the garden in a structured

and is divided into two categories

(tax and CSR). The types of

contributions are: (1) The tax on

land and building, (2) vehicle tax,

(3) tax heavy equipment, (4)

Income Tax, (5) implementation of

CSR programs.

Closed 22/06/2011

2011.31 8.1.1 The company has taken action directly related to the reduction in the use of certain chemicals (criterion 4.6), environmental impacts (criterion 5.1), waste reduction (criterion 5.3), Pollution and emissions (criterion 5.6), social impacts (criterion 6.1), but the Company not create an action plan and timeframes for the minimization of the impact on business is happening.

NC Office,

Mill and

Estates

Company should make a

clear action plan (action

plan) and the procedure time

to attempt minimization of

environmental impacts and

social impacts of plantation

and mill operations

Before

ST2

23/06/2011

Plan activities related to

environmental management and

pollution emissions, social impact,

and environmental impacts have

been set forth in the report

documents the implementation of

the RKL / RPL

Closed 23/06/2011


ASSESSEMENT REPORT


2011.32 8.1.2 RSPO certification of

internal audit activities has

been done, but need to be

made of internal audit

activities and reports

(checklists, summary

reports and follow-up) are

related with the RSPO P &

C reference.

CFA Office Need to be made record the

activities of internal audit

reports and follow-up related

directly with reference to the

requirements of the RSPO P

& C for continuous

operational improvement.

Before

ST2

23/06/2011

There is monitoring the corrective

action matrix of discrepancies

stage 1 assessment RSPO

includes reference information,

noncompliance, status, and follow

up.

Closed 23/06/2011

3.5.2 Summary of Non Conformance, Correction Action Required and Observation at Stage 2 Assessment

No Ref

Std

Non Conformance Grade Area Corrective Action

Request

Time

Limits

Date and

Observation

Status Closing

Date

2011.33 2.3.1 Management of traditional

rights -The company

advised that the content of

appeals / warnings on the

sign board placed in the

river are controlled

pengemin (traditional use

rights to the river) and

managed by GPI as HCV-5,

to include legislation of Musi

Banyuasin District No. 18 of

2005

CFA Estate S1

2011.34 5.3.3 Hazardous materials and

waste management of

hazardous materials -There

is still a hazardous materials

management programs and

hazardous waste materials

Minor Estate GPI must ensure that the

Hazardous waste

materials management

program and Hazardous

materials can be

completed on time.

S1


ASSESSEMENT REPORT


that are proceeds, among

others: (1) Application for

temporary storage permit,

Hazardous waste to all

estate (No.

044/GM-GPI/UM-Ex/IV/11

April 2, 2011). (2)

Construction of the canopy

in KRE diesel fuel tank.

2011.35 6.11.1 Company contributions to the community - It is recommended that in preparing the plan of Corporate Social Responsibility related contributions to local development company, to be based on the identification of people's basic needs (basic need identification) participatory, resulting in the form of assistance, and budget with clearly CSR the scale of priorities.

CFA S1

2011.36 3.1

SCCS

Supply Chain - The identity

of the material category

(Identity Preserved,

Segregated or Mass

Balance) on the invoice or

transport document CPO

cannot be listed.

Minor Office Companies must ensure

that the material category

on the invoice and

transport document other

CPO sales have been

listed.

S1


ASSESSEMENT REPORT


3.5.3 Summary of Noteworthy Positive Components

No Ref

Std

Descriptions

1. 1.1 The company already has a recording requests for information are well maintained within Log Book Incoming Mail

2. 1.2 The company has a record of information request responses are well maintained within log Book Outgoing Mail

3. 2.2.5 The Company has a conflict resolution mechanism that accepted the parties.

4. 4.5 The Company has implemented an Integrated Pest control including control mice with owls and planting beneficial plants as a habitat for predatory caterpillar

leaves, and reduced use of pesticides.

5. 5.1 The company has conducted environmental management.

6. 5.3 The Company has made the management of waste in accordance with existing regulations and waste reduction efforts.

7. 5.4 The company has been using renewable energy with the use of shells and fiber as a boiler fuel.

8. 6.1 The company has conducted social management

9. 6.3 The company has a grievance mechanism, the mechanism of communication and consultation with the community, and conflict resolution mechanisms that are

known by all parties.


ASSESSEMENT REPORT


3.6

Summary of Arising Issues from Public, Organization and Auditor Response

Public Issues

(Institution/ NGO/Community)

Organization Response Auditor Response

1. Department of Plantation Musi Banyuasin District

The company continues to attempt settle land conflict issues. There has been land claim in 2005 by the villagers of

Transmigration C1, C2, C3, C4, C5, C6, C7, B4 and B5 in

the RJE and NAE on the basis of land claims in the form of

land certificates issued by BPN.

The Company has been settled with compensation in the

years 2009-2010 in stages and is now the process of

HGU, the hearing committee stage B. Total settlement of

land claims in the RJE and NAE, covering an area of

2,405 plots with Rp 18,280,000,000 compensation value.

Citizens request to serve smallholders. There is a process of plasma plantation schemes KKPA The company has a development program with the

plasma plantation schemes of KKPA

The company has complied with applicable regulations,

especially licensing issues.

The Company is complies with applicable regulations.

The company has evaluated compliance with

regulations for each estate that indicates compliance

with legal requirements and related

The company is less of local employment. The company has using local communities as workers in

mill and estates.

The Social Impact Assessment Report Management of

Oil Palm Plantations PT. GPI South Sumatra on 2010

includes the Postitive and negative impact on existence

of the company. The Positive impact of company PT.

GPI, for example: to absorb local labor in the estates

and mill number of 861 people.

1. Community Leader of Babat Toman Village

There is community land compensation by PT GPI There has been land claim in 2005 by the villagers of

Transmigration C1, C2, C3, C4, C5, C6, C7, B4 and B5 in

the RJE and NAE on the basis of land claims in the form

of land certificates issued by BPN.

The Company has been settle with compensation in the years 2009-2010 in stages and is now the process of HGU, the hearing committee stage B. Total settlement of land claims in the RJE and NAE, covering an area of 2,405 plots with Rp 18,280,000,000 compensation value.


ASSESSEMENT REPORT


There are the community that willing and not willing

compensable

It is true, there are the community that willing and that not

compensable willing compensable

The company has / is completing the land issue with

the parties’ relevant stakeholders including through

compensation.

The existence of a company have resulted in environmental

impacts that is after a company making the drainage canals,

resulting in the community rice fields of drought, and floods

so that fields cannot be planted.

The company made drainage canals and embankments

to prevent flooding in areas adjacent to large rivers

Based on observations in the garden area adjacent to

the fields of citizens, for example in Block O54 KRE

known that the company did make drainage canals and

embankments to prevent flooding caused by

overflowing of the river of Musi.

2. Community Leader of Karang Ringin II Village

Done CSR programs in PT GPI form of assistance the

school fence.

PT GPI has done a good CSR program Available recording is complete realization of CSR

activities that inform the types of CSR programs,

objectives, month / date of realization and photo

documentation. Contribution to local community based

consultations with the community.

3. Community Leader of B5 Tanjung Keputran Village.

There are land compensation processes, facilitated by

Department of Plantation Musi Banyuasin.

There are land compensation processes, facilitated by

Department of Plantation Musi Banyuasin.

Prices of land for each plots of compensation in

accordance with Regent Decree Musi Banyuasin.

Number: 1179 of 2007 concerning the payment process

through the community attorney witnessed by the local

government, BPN, Department of Plantation, State

Court, for example, compensation for the land

certificate No. 889 on behalf of Amir Hamsyah

Communities are not willing compensable request, to be

used as plasma.

The company has program to development plasma

plantation, for the community.

PT GPI has a plasma plantation development program

with KKPA scheme.

4. Secretary of Lawang Wetan Sub district

The company has contribute Positively to the use of local

labor

The company uses a lot of the labor from the surrounding

community.

The company made the local community as an

employee


ASSESSEMENT REPORT


The company less attention to the management of river The company has determined Buffer zone of the river

areas as HCV 4.1 area and will be managed in

accordance with applicable regulations.

The company has made the river buffer zone area, as areas of HCV 4.1 and managed. And the company has implemented several treatment related to the protection of buffer zone area of the river, in the form of marking areas that should not be applied to chemicals, installation of information boards and socialization Buffer zone of the river.

Based on reports from villagers indicated the company

made changes to river bodies.

The company never did change the river, but the

company is only ever to do a little cleanup of the river

area, where the water is used for the processing of FFB.

Based on the results of the visit location Block A002 which is buffer zone area Pingei river, ever cleared by the company, but the current state of the visit has become a thicket. The company doing the cleaning area of the river as a source of water for the processing of FFB in the mill.

5. Head of Rantau Kasih Village

The company has not realizing Plasma plantation

development

Associated with the manufacture of plasma demands of

local communities that the name of Lawang wetan Sub

district comunity, PT. GPI had taken following steps:

1. PT. GPI operates according Location Regent Permit

No. 17/SK/II/97 dated October 14, 1997 with 19,885 ha

area located in the village of Rantau Panjang, Rantau

Kasih Village, Ulak Paceh Village, Karang Anyar

Village, Karang Waru Village, Mangun Jaya Village.

Subdistrict of Babat Toman and district of Sekayu is

only obliged to build the core estate.

2. Based on the permit: (a) an area of 10,139 ha has

certified HGU, (b) an area of 1843 hectares on land

PT.GPI LU-2 obtained by way of compensation and are

now in the process of HGU, (c) an area of 1570 ha

(GPI-5) obtained PT. GPI has of compensation is now

in the process of HGU.

3. The company continues to make progress to build

plasma plantation.

Associated with the manufacture of plasma demands of

local communities that the name of the local villagers

district. Wetan mace, PT. GPI has taken steps that

better handling. Provide an explanation to the District

government. Musi Banyuasin and community that

demands the manufacture of plasma clearance of

chronological PT. GPI that based on the rules and show

evidence of land acquisition to the parties concerned.

The company also continues to make progress to build

plasma.


ASSESSEMENT REPORT


4.0 CERTIFIED ORGANISATION'S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal sign-off of assessment findings

Hereunder sign by management representative from inspected company to acknowledge a field assessment

and agree for all content explained in this assessment report, included of non-compliance findings.

Signed on behalf of:

Head of PSQM

Mutuagung Lestari

Minamas Plantation

Lead Auditor

Mohamad Pirabaharan

Deni. A. Novendi

Date : Saturday, 24/06/2011

Date : Saturday, 24/06/2011


ASSESSEMENT REPORT


Annex 1. Peer Review Report

Name of Reviewer:

I. General comments on the evaluation

No Issues and Comments Clarification/explanation

TO BE FILLED IN BY MUTU

II. General comments on the inspection report



III. Specific comments on the proposed certification decision, including any reconditions, conditions or recommendations




ASSESSEMENT REPORT


Annex 2. Result of RSPO Committee - RSPO Certification

No Input and Responses


ASSESSEMENT REPORT


Annex 3. List of Stakeholder Contacted in the RSPO Certification Process

No Institution/Department Address Phone/Email Form of Contact Date of Contact

1. Head of Environment

Agency, Musi Banyuasin

Jl. Kol Wahid Udin,sekayu

Post 14/11/ 2011

2. Head of Labor Agency of

Musi Banyuasin district


Post 14/11/ 2011

3. Natural Resource

Conservation Bodies, Musi

Banyuasin


Post 14/11/ 2011

4. Head of Plantation Agency of

Musi Banyuasin


Post 14/11/ 2011

5. Head of Forestry Agency of

Musi Banyuasin district


Post 14/11/ 2011

6. Head of Regional Revenue,

Financial & Asset

Management Office of Musi

Banyuasin District


Post 14/11/ 2011

7. Head of National Land

Agency of Musi Banyuasin


Post 14/11/ 2011

8. Head of Health Agency of

Musi Banyuasin


Post 14/11/ 2011

9. WALHI NGo of South

Sumatera

Jl Sumatera 1 No. 771, 26 Ilir,

Sub district of Ilir Barat,

Palembang

Post 14/11/ 2011

10. Lawang Wetan subdistrict

Chief

Jln Kol Wahid Udin, Sekayu

Email:femmy.chandra

@simedarby.com

14/11/ 2011

11. Babat Toman Sub district

Police Chief

Jln Jaya Sempurna, Sub

district of Babat Toman

Email:femmy.chandra

@simedarby.com

14/11/ 2011

12. Commander Military of Babat

Toman

Jln Sekayu-Babat, Sub

district of Babat Toman

Email:femmy.chandra

@simedarby.com

14/11/ 2011

13. Head Karang Ringin II

Village

Dusun 2, No 87, Karang

Ringin II Village

Email:femmy.chandra

@simedarby.com

14/11/ 2011

14. Head of Karang Ringin I

Villag

Karang Ringin I Village Email:femmy.chandra

@simedarby.com

14/11/ 2011

15. Head of Ulak Teberau

Village

Dusun 2, No 21, Ulak

Teberau village

Email:femmy.chandra

@simedarby.com

14/11/ 2011

16. Head of Kasmaran Village Dusun 1, No 121, Kasmaran

Village

Email:femmy.chandra

@simedarby.com

14/11/ 2011

17. Head of Karang Anyar

Village

Jln Sekayu-Babat, Karang

Anyar Village

Email:femmy.chandra

@simedarby.com

14/11/ 2011


ASSESSEMENT REPORT


18. Head of Rantau Panjang

Village

Jln Sekayu-Babat, Rantau

Panjang Village

Email:femmy.chandra

@simedarby.com

14/11/ 2011

19. Head of Bumi Ayu Village Dusun 2, Bumi Ayu Village Email:femmy.chandra

@simedarby.com

14/11/ 2011

20. Head of Rantau Kasih

Village

Dusun 1, No 36, Rantau

Kasih Village

Email:femmy.chandra

@simedarby.com

14/11/ 2011

21. Head of B5 Village Jln Sekayu Plakat Tinggi,

Tanjung Keputren Village

Email:femmy.chandra

@simedarby.com

14/11/ 2011

22. Head of Mangun Jaya

Village

Mangunjaya Village, Babat

Toman

Email:femmy.chandra

@simedarby.com

14/11/ 2011

23. Head of Napal Village Napal Village, Lawang

Wetan Sub District

Email:femmy.chandra

@simedarby.com

14/11/ 2011

24. Head of Suka damai (SP2)

Village

Dusun 5, Suka damai

Village, Plakat Tinggi sub

district

Email:femmy.chandra

@simedarby.com

14/11/ 2011

25. Head of Sidomukti (SP1)

Village

Dusun 5, Sido mukti

Village, Plakat Tinggi sub

district

Email:femmy.chandra

@simedarby.com

14/11/ 2011

26. Head of Sukajaya (SP3)

Village

Dusun 1, Sukajaya village,

Plakat Tinggi Sub district

Email:femmy.chandra

@simedarby.com

14/11/ 2011

27. Head of SPSI RJE Housing of RJE Email:femmy.chandra

@simedarby.com

14/11/ 2011

28. Head of SPSI BYE Housing of BYE Email:femmy.chandra

@simedarby.com

14/11/ 2011

29. Head of SPSI NAE Housing of NAE Email:femmy.chandra

@simedarby.com

14/11/ 2011

30. Head of SPSI KRE Housing of KRE Email:femmy.chandra

@simedarby.com

14/11/ 2011

31. Head of SP.SPP GPI Housing of BYE Email:femmy.chandra

@simedarby.com

14/11/ 2011

32. Community Leader of

Mangun Jaya Village

Dusun 1, Mangun Jaya

village

Email:femmy.chandra

@simedarby.com

14/11/ 2011

33. Community Leader of Bumi

Ayu Village

Dusun 2, Bumi Ayu village,

Lawang Wetan sub district

Email:femmy.chandra

@simedarby.com

14/11/ 2011


Karang Ringin I Village

Dusun 2, Karang Ringin I

village

Email:femmy.chandra

@simedarby.com

14/11/ 2011

35. Babat Toman subdistrict

Chief

Babat Toman sub district Email:femmy.chandra

@simedarby.com

14/11/ 2011


Rantau Kasih Village

Dusun 3, Rantau Kasih

village, Lawang Wetan sub

district

Email:femmy.chandra

@simedarby.com

14/11/ 2011


ASSESSEMENT REPORT


37. Community Leader of piase

Village

Dusun 2, Talang Piase

Village, Lawang Wetan sub

district

Email:femmy.chandra

@simedarby.com

14/11/ 2011

38. Head of YP.GPI 2 Primary

School

Housing of BYE Email:femmy.chandra

@simedarby.com

14/11/ 2011

39. Teacher of YP.GPI 2

Primary School

Housing of BYE Email:femmy.chandra

@simedarby.com

14/11/ 2011

40. Head of Karang Ringin II

Primary School

Sekayu Email:femmy.chandra

@simedarby.com

14/11/ 2011

41. Kepala Sekolah SDN Piase

RJE

Talang Piase Village, Lawang

Wetan sub district

Email:femmy.chandra

@simedarby.com

14/11/ 2011

42. Head of Lawang Wetan

Secondary School

Housing of KRE Email:femmy.chandra

@simedarby.com

14/11/ 2011


ASSESSEMENT REPORT


Annex 4. Glossary

EIA : Environmental Impact Analysis

PPE : Personal Protective Equipment

PFFT : Portable Fire Fighting Tools

B3 : Hazardous Waste

BAPEDALDA : Regional Environmental Impact Management Agency

BLH : Environmental Affairs Agency

BOD : Biological Oxygen Demand

BPN : National Land Agency

BSS : Block Spraying System

BYE : Bumi Ayu Estate

CITES : Convention On International Trade Endanger Species

COD : Chemical Oxygen Demand

CPO : Crude Palm Oil

CSR/CD : Corporate Social Responsibility/ Community Development

FFB : Fresh Fruit Bunches

FIRST AID : First Aid

GPI : Guthrie Pecconina Indonesia

HCV/HCV : High Conservation Value

HGU : Land Exploitation Rights

HIRAC : Hazard Identification Risk Assessment Control

IPM : Integrated Pest Management

JAMSOSTEK : Jaminan Sosial Tenaga Kerja (Social Security Plan for Workers)

OHS : Occupational Health & Safety

KAN : Komite Akreditasi Nasional (National Accreditation Committee)

KKPA : Kredit Koperasi Primer Anggota (Primary Cooperatives Credit

Members)

KRE : Karang Ringin Estate

LC : Land Clearing

LD50 : Lethal Dosage (Certain dosage that can kill 50% of total population)

MSDS : Material Safety Data Sheet

NAE : Napal Estate

NGO : Non-Governmental Organization

Permentan : Regulation of Minister for Agriculture

P2K3 : Committee for Occupational Health and Safety Development

PK : Palm Kernel


ASSESSEMENT REPORT


POM : Palm Oil Mill

POME : Palm Oil Mill Effluent

PP : Government Regulation

PSD : Plantation Service department

PUK : Working Unit Head

PSQM : Plantation Sustainability Quality Management

RJE : Rantau Panjang Estate

RKL : Environmental Management Plan

RPL : Environmental Monitoring Plan

RSPO P&C : Roundtable on Sustainable Palm Oil Principle and Criterion

S1 : Surveillance 1

SKU : Business Unit

SOP : Standard Operating Procedures

SPSI : Indonesian Trade Union

ST2 : Stage 2 (Main Assessment)

UMR : Regional Minimum Wage

UU : Laws

WWTP : Waste Water Treatment Point