rspo recommendation report

SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES

Sucofindo ICS FRM 14.05 Issue 00 Rev. 1 1of 144

RSPO

Recommendation Report PUBLIC SUMMARY

PT. Poliplant Sejahtera

This public summary has been prepared in accordance with RSPO requirements and the information included is the result of a full RSPO assessment of the Mills and supply base as included in the scope of the certificate. Prepared by: Nuzwardi Syahwil (Lead Assessor) Certification decision made by: Triyan Aidilfitri (Technical Reviewer) PT. SUCOFINDO (Sucofindo International Certification Services – SICS) Graha Sucofindo B1 Floor, Jl. Raya Pasar Minggu Kav. 34, Jakarta 12780 Indonesia Contact Person: Tuti Suryani Sirait Phone: (62-21) 7983666; Fax: (62-21) 7987015 Email: [email protected]



List of Contents Page

A Scope of the Certification Assessment ................................................................. 4

A.1. National Interpretation Used ................................................................................ 4

A.2. Assessment Type (Estate and Mill) ...................................................................... 4

A.3. Location Map ....................................................................................................... 4

A.3.1. Location Address of the Mill and Approximate Tonnages Certified

(CPO and PKO) ................................................................................................... 5

A.4. Description of Supply Base .................................................................................. 6

A.4.1. General Description ............................................................................................. 6

A.4.2. Location of Supply Base ...................................................................................... 6

A.4.3. Statistic of Supply Base ....................................................................................... 6

A.5. Other Certifications Held ...................................................................................... 7

A.6. Organizational Information and Contact Person ................................................... 7

A.6.1 Audit Againstthe Rules for Partial Certification ..................................................... 7

A.7. Date Certificate Issued and Scope of Certificate .................................................. 10

B. Assessment Process ........................................................................................... 11

B.1. Certification Body ................................................................................................. 12

B.2. Qualifications of the Assesment Team ................................................................. 12

B.2.1. Qualifications of the Lead Assessor and Assessment Team ................................ 12

B.3. Assesment Methodology ...................................................................................... 14

B.3.1. General Overview ................................................................................................ 14



B.4. Stakeholder Consultation ..................................................................................... 20

B.4.1. Summary of How Stakeholder Consultation was Organized ................................ 20

B.5. Date of Next Surveillance Visit ............................................................................. 24

C. Assessment Findings ........................................................................................... 24

C.1. Lead Assessor’s Summary and Recommendation for Certification ...................... 24

C.2. Summary of the Findings by Criteria .................................................................... 26

C.3. Identified Non-conformances and Noteworthy Positive Components ................... 89

D. Certified Organization’s Acknowledgement of Internal Responsibility................... 93

D.1. Formal Sign-Off the Assessment Findings ........................................................... 93

D.2. Statement by the Certifier Body on Behalf of PT. Sucofindo SBU-SICS ............... 94

List of Abbreviation ............................................................................................................ 95

Appendix-1 Map .............................................................................................................. 98

Appendix-2 NCR.................................................................................................................102



A. Scope of the Certification Assessment

A. 1. National Interpretation Used

The management of the Palm Oil Mill(s) and associated suppliers of Fresh Fruit Bunches (FFB) were

assessed for compliance against the International RSPO Principle and Criteria 2013 Generic and

RSPO Certification Systems and RSPO Suply Chain Certification Systems 2014.

A. 2. Assessment Type (Estate and Mill)

Certification Unit : PT.Poliplant Sejahtera – Siriham Mill and Siriham Estate located at Desa Siriham,

Kecamatan Air Upas, Kabupaten Ketapang, West Kalimantan

A.3. Location map



A. 3. 1. Data of the Mill, certified tonnages (CPO, PK, FFB), and Certified Area

Name Of Mill Siriham Mill

Location Address Desa Siriham, Kecamatan Air Upas, Kabupaten Ketapang, West Kalimantan

GPS Reference Latitude (S) : 01o25’12” – 01o59’04”

Longitude (E) : 110o40’24” – 110o57’53”

Capacity 60 mt/hr

Actual Production (2015) CPO : 16,611.00 mt ; PK : 3,473.00 mt FFB : 77,009.00 mt

Certified tonnages claimed (2016)

CPO : 16,632.00 mt ; PK : 3,326.00 mt FFB : 97,835.29 mt

Certified Area 4,004.5 ha

Planted Area 3,794.46 ha

Certified tonnages sold CPO : - mt, PK : - mt.

Certified tonnages purchased

CPO : - ; PK : -



A.4. Description of Supply Base

A. 4. 1. General description

Raw materials for PT.Poliplant Sejahtera are supplied from Siriham estate. Poliplant Sejahtera also

receives TBS supply from external parties such as from KUD Subur Makmur, Bukit Selendang Jaya,

Budi Asih, Titian Makmur, Mitra Sejahtera, and Karya Jaya. There is no plan to expand land area

and therefore Principles 7 does not apply to this assesment.

PT. Poliplant Sejahtera operates one oil palm mill to process the products of the estate and all

estates located in Desa Siriham, Kecamatan Air Upas, Kabupaten Ketapang, West Kalimantan,

INDONESIA. PT. Poliplant Sejahtera is a member of RSPO and implements a program to achieve

RSPO Palm Oil Certificate for the entire production.

A. 4. 2. Location of the supply base

No. Estate Name Location

GPS

Latitude (S) Longitude (E)

1 Siriham Estate Desa Siriham, Kecamatan

Air Upas, Kabupaten

Ketapang

01o25’12”–

01o 59’04”

110o40’24”–

110o57’53”

A. 4. 3. Statistic of supply base (actual 2015)

No. Estate

Name

Planting

Year

Area/Planting

Year (Ha)

Age/Planting

Year

FFB/Year

(ton/year)

CPO/Year

(tones)

PK/Year

(tones)

1 Siriham

Estate

1993 745.40 23 16,089.00 3,470.00 726.00

1994 2200.55 22 44,244.00 9,544.00 1995.00

1995 848.51 21 16,676.00 3,597.00 752.00

Total 3794.46 77,009.00 16,611.00 3,473.00



Projected 2016

Supply Bases Hectare (Ha) FFB (tonnes) CPO (tonnes) PK (tonnes)

Own Supply base 3794.46 97,835.29 16,632.00 3,326.00

Small Holder 8,914.00 175,802.50 29,886,52 5,976,58

Total 12,708.46 273,637.80 46,518.52 9,302.58

A.5. Other Certifications Held

ISO 14001, ISO 9001

A. 6. Organizational Information and Contact Person

1. The Company Name PT. Poliplant Sejahtera

2. Personal Contact Yunita Widiastuti

3. Vice Management Anthony Yeow

4. The Company Address Cargill Tropical Palm : PT Hindoli, JL. Palembang – Jambi, DesaTelukKemang, Kecamatan Sungai Lilin,Kabupaten,Banyuasin 30755, Provinsi Sumatera Selatan, Indonesia.

5. The Company Status Foreign Investor (PMA)

6. Phone/ Fax 62-21-57891873

7. E-mail [email protected]

8. Website www.cargill.co.id

9. RSPO membership number 1-0199-16-000-00

A.6.1 Audit against the Rules for Partial Certification

1. Introduction

http://www.cargill.co.id/



The partial audit was conducted during the certification audit of RSPO P&C at PT. Poliplant Sejahtera on 12 January 2016. The team found that the company complies with the RSPO requirements for partial certification as stated in the final RSPO certification Systems documents, June 2007, section 4.2.4. 2. Assessment agenda (partial Certification Audit)

Date Location Agenda

12 January 2016 PT. Polipant Sejahtera

Desa Siriham, Kecamatan Air Upas, Kabupaten Ketapang, West Kalimantan

Partial audit

3. Audit Team Findings in Correlation to the Rules Partial Certifications a. The Organization is a member of RSPO

Alpha Capital Limited has confirmed membership of the RSPO with no. 1-0199-16-000-00

b. A Time Bound Plan for achieving certification within relevant entities

No Name of Mill Supply Base Company Location Estimate time of

Certification

1 Manis Mata 1. Manis Mata

Estate 2. Bagan Kusik

Estate 3. Betivau Estate 4. Kemuning

Estate

PT. Harapan Sawit Lestari

Desa Manis Mata, Kecamatan Manis Mata Kabupaten Ketapang Kalimantan Barat – Indonesia

Certified in 2014

2 Paku Juang 1. Paku Juang Estate

2. Kebanteng Estate

3. Keluwin Estate 4. Sungai Dabo

Estate

PT. Harapan Sawit Lestari

Desa Air Upas, Kecamatan Air Upas, Kabupaten Ketapang Kalimantan Barat Indonesia

Certified in 2014

3 River view 1. River View Estate

2. Lake View Estate

PT. Indo Sawit Kekal

Dewa Danau Buntar Kecamatan Kendawangan Kabupaten Ketapang

Certified in 2014



Kalimantan Barat Indonesia

4 Mukut Mill 1. Mukut Estate 2. Penuguan

Estate 3. Pulau Berayun

Estate 4. Sungai Nipah

Estate 5. KKPA Mukut

Estate 6. KKPA

Penuguan Estate

PT. Hindoli

Desa Mukut Kecamatan Pulau Rimau Kabupaten Banyuasin Sumatera Selatan Indonesia

Certified in 2016

1. Sungai Lilin

2. Tanjung Dalam

1. Sungai Pelepah Estate

2. Sungai Tungkal Estate

3. Tanjung Dalam Sri Gunung Estate

4. KUD Karya Makmur Estate

5. KUD Sumber Barokah Estate

6. KUD Jaya Usaha Mandiri Estate

7. KUD Mulyo Mandiri Estate

PT. Hindoli

1. Desa Teluk Kemang, Kecamatan Sungai Lilin KabupatenMusi Banyuasin Sumatera Selatan Indonesia

2. Desa Dawas, Kecamatan Keluang KabupatenMusi Banyuasin Sumatera Selatan Indonesia

Certified in 2008

5.

Kedipi Mill

1. Kedipi Estate 2. Pulailaman Estate 3. Jelamu Estate

PT. Maya Agro Investama

Desa Air Dekakah, Kecamatan Manismata, Kabupaten Ketapang

2017

1. Sei Tempayak Estate

2. Danau Ratu Estate

PT.Andes Sawit Mas

Kecamatan Marau dan Jelai Hulu ,Kabupaten Ketapang

2017

6. Sei Kerandi

1. Air Merah Estate

PT. Andes Agro

Desa Kedondong dan

2017



Mill 2. Sei Resak Estate

3. Sei Kerandi Estate

Investama Bangkal Serai , Kec. Kendawangan, Kab. Ketapang

1. Sei Nenas Estate

2. Sei Repin Estate

3. Belangeran Estate

PT.Andes Sawit Lestari

Desa Bangkal Serai, Seriam dan Banjarsari , Kec.Kendawangan, Kab. Ketapang

2017

The company has made the self declaration for partial certification rule and signed by management. The self declaration stated as belows (a-d) :

a. Significant Conflicts We believe our company must work with employees, suppliers, partners, customers, and

governmental, non-governmental and community organizations to protect and enhance

environment, health & safety, product quality, food and feed safety.

b. No replacement of primary forest and or area with HCV’s since November 2005 or year 2007 (National Interpretation) N/A, PT. Poliplant Sejahtera was developed before 2005.

c. No labor disputes that are not being resolved through an agreed process Provide the resources and support necessary to enable our employees to fulfill this responsibility .

d. No evidence of non-compliance with law in any of the non-certified holdings Meet or exceed all applicable legal and corporate requirements.

The company has comply with the applicable law and regulation refers to RSPO criteria 2.1.which

stated no evidence of non-compliance with the applicable regulation. Supporting documents are

copies of SK AMDAL, SK HGU, IUP and IMB.

A.7. Date Certificate Issued and Scope of Certificate

Name of Client PT. Poliplant Sejahtera

Client Number RSPO 00010

Certificate Number RSPO 00010

Certification Decision Date September 01, 2016



B. Assessment Process

B. 1. Certification Body

SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES (SUCOFINDO ICS), which was

formed in 1994, is one of the strategic business unit that provides certification services for leading

The Company. Sucofindo Certification by International Certification Services is recognized nationally

and international. Quality Management System Certification by SUCOFINDO ICS has obtained

accreditation from National Accreditation Committee (KAN-Indonesia).

Lead Auditors and Auditors of SUCOFINDO ICS are trained professionals in the field of international

Issued by PT. Sucofindo, SBU SICS

Address Graha Sucofindo, SBU SICS Jl. Raya Pasar Minggu Kav.

34, Jakarta 12780 Indonesia

Telephone /Fax Telp : (62-21) 7983666 / Fax : (62-21) 7987015

Email [email protected]

Website www.sucofindo.co.id

Scope :

Mill Siriham Mill

Estate Siriham Estate

Projected mass balance CPO & PK CPO : 16,632.00 mt and PK : 3,326.00 mt

Certification Registration Code RSPO 00010

Type of Certification Single site

Certifier Triyan Aidilfitri

Signed

mailto:[email protected]

http://www.sucofindo.co.id/



standards, auditing and management systems and are registered in the IRCA (International Register

of Certified Auditors) and IEMA (Institute of Environmental Management & Assessment), UK.

SUCOFINDO ICS certification process is supported by experts at PT. SUCOFINDO who understand

the industry sectors and services in Indonesia.

SUCOFINDO ICS Operational is supported by a network of branch and representative offices of PT.

SUCOFINDO spread in 45 cities across Indonesia.

The services provided by International Certification Services Sucofindo are:

Quality Management System Certification

Environmental Management System

ISO 22000 :2005

OHSAS 18000 Certification

Hazard Analytical Critical and Control Point (HACCP) Certification

Good Manufacturing Practice (GMP) Audit

Product Certification

Sustainable Forest Management Certification

Products Organic Food Certification

RSPO certification

ISPO Certification

Certification of Integrated Management System Certification (SMT)

Training

B. 2. Qualifications of the Assessment Team

B. 2. 1. Qualifications of the Lead Assessor and Assessment Team

Nuzwardi Sjahwil (Lead Auditor) :

He graduated from Institute Agriculture of Bogor (IPB).

He has more than 5 years audit experiences in OSHAS and SMK3. He has successfully completion

from Lead auditor for SMK3, Lead Auditor for OHSAS and Lead Auditor for ISO 9001. He has

successfully completion training RSPO by Komisi RSPO, Jakarta, ISPO Lead Auditor Training by

Komisi ISPO, Jakarta, and Supply Chain Training

Tuti Suryani Sirait (Auditor) :

Graduated from Institute Agriculture in Bogor (IPB), 1991



She has more than 10 years audit experiences in auditing HACCP, GMP, ISO 9001:2008, ISO

22000:2005, ISPO and RSPO.

She has successfully completion training RSPO by Komisi RSPO, Jakarta, SCC Standard Training

by David Ogg & Partner – Jakarta, ISPO Lead Auditor Training by Komisi ISPO, Jakarta, Lead

Auditor Training of ISO 9000/19011 organized by SICS – Sucofindo, ISO 22000 : 2005 FSMS

Auditor / Lead Auditor by Moody International, Singapore; Lead Assessor for Food Safety

Management System (HACCP&GMP) by QAS Sydney, Australia and Social Lead Auditor Training

(SA 8000) from Social International Audit (SIA), Turkey.

She is actively participated in RSPO meeting to discuss RSPO P & C and also as a trainer in ISPO

Lead auditor training.

Amelia Rizky R (Auditor):

She graduated from Airlangga University, Surabaya.

She has successfully completion Lead Auditor Training ISPO by Komisi ISPO, Jakarta, Awareness

Hazard Analysis Critical Control Point (HACCP) by PT. Sucofindo, Lead Auditor IRCA Training of ISO

9001:2008 by PT. Sucofindo, and Lead Auditor Training IRCA ISO 14001: 2004 by PT. Sucofindo.

Warsid Sumarlin (Auditor)

He graduated from Institute Agriculture of Bogor (IPB) majoring Economic and Social.

He has more than 5 years audit experiences in OSHAS and SMK3. He has successfully completion

from Lead auditor for SMK3, Lead Auditor for OHSAS and Lead Auditor for ISO 9001. He has

successfully completion training RSPO by Komisi RSPO, Jakarta, ISPO Lead Auditor Training by

Komisi ISPO, Jakarta.

Ronald E Butar-Butar (Auditor)

S1 graduated from Catholic University Faculty of Agriculture.

Work Experience (Best Practice Estates) in oil palm estates for 6 years. He has successfully

completion Lead Auditor Training ISPO by Komisi ISPO. He has completion In House Training

RSPO for 4 days.

Hidayat Pramudiyanto (Auditor):

He graduated from University of Diponegoro, Semarang.

He has the training AMDAL A at Universityy of Gadjah Mada Yogyakarta, April 1994, AMDAL

B at University of Diponegoro, Semarang, October 1998, Monitoring of environment quality and



waste, IRCA Environmental Management Systems Auditor / Lead Auditor Course

Noor Rakhmat Danumiharja (Technical Expert)

He graduated from Academy of Forestry in Bandung in 1980 and Universitas Nusa Bangsa Faculty

Of Forest Management in 1998.

He worked in Ministry of Forestry from 1982 – 2013 with the latest position as Section Head of

investigation. He has successfully completed training of Wildlife Conservation and Management

Training Program, basic of environmental impact analysis, wildlife captivity, wildlife conservation

management, Lead Auditor Training by Komisi ISPO, Jakarta,

B.3. Assessment Methodology

B. 3. 1. General Overview

The assessment was carrying out in conformity with the SBU SICS RSPO manual and procedures

for auditor and certifier. The assessment was conducted by qualified auditors and referred to RSPO

standard. Partial certification audit conducted during compliance audit to check compliance with

Final RSPO Certification System for partial certification.

The opening and closing meeting for both pre eliminary audit and final audit was conducted at the

office of Siriham Estate and then continue in Mill’s and estate’s offices. Stakeholders meeting was

conducted once, during compliance audit.

Actual Audit Programme

Phase I : Preliminary Audit

Number of assessor participating: 4 auditors

Number of days spent for the assessment on site : 4 days

Total number of mandays used for the assessment on site :16 days

Date/Time Functions/areas/Department/activities to be audited (include related requirements)

Auditor(s)

18/08/2015 Day I

14.50-16.00 Departure from Soetta - Jakarta to Pangkalan Bun Team

16.00-22.00 Departure from Pangkalan Bun to PT. Poliplant



19/08/2015 Day II

08.00-12.00 Opening meeting

Company profile presentation

Arrangement of audit schedule (Auditor vs Auditee)

All

Stakeholders information (1.1;1.2/2.5), Transparency (6.2), Ethical Conduct (1.3) & Management, include internal audit & management review meeting (3.1;8.1/2.1;7)

WS/NR

SCCS, Partial Audit, Compliance of Regulation (2.1), High Conservation Value and Biodiversity (5.2/4.6;4.8;4.9)

AMR/NR

Legal (2.2/1.1;1.2;1.3;1.4;1.6;1.7;1.9;2.3;3), Land Use (2.4) and Best Practices Mill (4.1/2.2.2.1-2.2.2.3)

RB

08.00-12.00 Management Representatives, Internal audit, Document controller (14001)

HDY, AMR

General Requirements (4.1), Manual, Documentation and Record System, Risk Management, Policy, Legal Requirement, Management Review, Audit Internal, Objective, Program. (4.2, 4.3.1, 4.3.2, 4.3.3, 4.6, 4.5.5)

Corrective and Preventive (4.5.2; 4.5.3)

Control of production (4.4.6); Monitoring & Measurement of process (4.5.1), Control of Non Conforming product (4.5.3)

12.00-14.00 Break All

14.00-17.00 Continue from previous audit Team

17.00 End of day II Team

20/08/15 Day III

08.00-12.00 CSR programme & Indigenous people (6.11/6.1,6.2), SIA (6.1), Worker Welfare (6.5;6.7;6.12/5.2), Discrimination (6.8;6.13/5.3), Sexual Harassment (6.9) Trade Union (6.6/5.4); Training (4.8)

Land Conflict and Compensation (6.4/1.8), Smallholder Scheme, Local contractor and Supplier (6.10/1.5;6.3), FPIC (2.3), Compliance & Grievances (6.3)

WS/NR

Environment (4.4;4.6;5.1;5.3;5.4;5.6/2.2.2.4;2.2.2.5;4.1;4.2;4.3;4.4;4.7;4.10)

AMR

Koperasi (5.5), Best Practice Estate (4.1;4.2;4.3;4.5/2.2.1.1-2.2.1.7) & NPP (7.1-7.8)

RB

K3/OHS Aspects (4.7;5.5/4.5;5.1) HDY

12.00-14.00 Break All



14.00-17.00 Continue from previous audit Team

17.00 End of day III

21/08/15 Day IV

08.00-10.00 Site Visit (Mill and Estate)

Continue from documentation audit

Team

10.00-11.30 Reporting Team

11.30-14.00 Break All

14.00-15.00 Reporting Team

15.00-16.30 Closing Meeting All

16.30-22.00 Departure from PT. Poliplant to Pangkalan Bun (stay in Pangkalan Bun)

Team

22/08/15 Day V

12.50 Departure from Pangkalan Bun to Jakarta Team

Certification Audit

Number of assessor participating: 4 auditors

Number of days spent for the assessment on site : 4 days

Total number of mandays used for the assessment on site :16 days

Date/Time Functions / areas / Department / activities to be audited (include related requirements)

Auditor(s)

11 Jan 2016 Day 1st (Monday)

14.05-15.30 Trip form Jakarta to Pangkalan Bun

15:30-20:00 Trip from Pangkalan Bun to sites

12 Jan 2016 Day 2nd (Tuesday)

08:00 Opening Meeting All

08:30 Document audit

Check completeness of previous NCR minor and observation

NS



Partial Certification NS

Land dispute and conflict

(2.2.3, 2.2.4, 2.2.5, 2.2.6)

Compensation to legal and

customary right (6.4)

FPIC (2.3)

NPP (7)

NS

Worker welfare

Check completeness of previous NCR minor and observation

TSS

Worker welfare (6.5)

Water for worker (4.4.1) TSS

Anti discrimination (6.8)

Child labour (6.7)

Complaint handling 6.3

TSS

Legality regarding land

(2.2.1, 2.2.2) & 1.2.1 regarding land title

RB

Best practice at estate (4.1)

Erosion control and peat (4.3)

Pest management (4.5)

Pesticide (4.6.1 – 4.6.4)

RB

Check completeness of previous NCR minor and observation TSS/ND

NKT/HCV (5.2) and 1.2.1 regarding HCV

Protection of water courses and wetlands (4.4.2)

Environmental impact assessment (5.1) and 1.2.1 regarding EIA

HDY

HDY

HDY

POME for land application (4.4.3)

Waste management (5.3)

12.00 Break

14:00

Business plan (3.1) TSS

Social responsibility (6.1.1 – 6.1.4) NS/ND



Development of local businesses (6.11)

Occupational health and safety and legal requirement regarding heath and safety (4.7)

NS

Safety in pesticide (4.6.5 – 4.6.12)

GHG mitigation (5.6) HDY

Schemed Smallholder (6.1.5)

FFB reception from small holder and local business (6.10)

TSS

Practices maintain soil fertility (4.2)

Water management at estate (4.4.1)

RB

17.00 End of audit day 2

13 Jan 2016 Day 3rd (Wednesday])

07:30 Visit estate

Visit to harvesting, spraying and manuring NS/RB

Visit to HCV location TSS/ND

Visit to housing facility, warehouses, bathing facility, day care NS

Visit to BPN Pole TSS/ND

Visit to land application HDY

09:30 Visit to mill HDY

POME (4.4.3)

12:00 Break

14:00 Visit Mill

SCCS RSPO NS

Best practice mill (4.1)

FFB reception from small holder and local business (6.10) TSS



Worker welfare (6.5)

Occupational health and safety and legal requirement regarding heath and safety (4.7)

NS

Renewable energy (5.4)

Water management at mill (4.4.1)

Water efficiency at mill (4.4.4)

HDY

At Estate

Continue audit on pending agenda

ND

14 Jan 2016 Day 4th

(Thursday)

08:00 Stake holder consultation NS/ND

Trade Union (6.6) RB

Continous improvement (8.1) RB

Use of fire for preparing land or replanting (5.5) RB

Training 4.8

Sexual harassment (6.9)

TSS

10:00 Compliance to regulation (2.1) TSS

Information provision (1.1, 1.2)

Consultation and communication 6.2, NS

12:00 Break

14:00 Ethical conduct (1.3)

Forced labour (6.12)

Human right (6.13)

NS

17:00 End of audit day 4

15 Jan 2016 Day 5th (Friday)

08:00 RSPO reporting

ISPO reporting

11:30 Break



B. 4. Stakeholder Consultation

B. 4. 1. Summary of How Stakeholder Consultation was Organized

Stakeholders Consultation and The Company Responses

Issue The Company Responses Assessor Findings

1. Suparman, SP-6 Village

- The Company has not complied with the obligations of CSR, especially in order to provide free health care, wells and electrics

- Village of Bekayas loses land of village for public facilities about 10 Ha which was originally obtained from Ketapang regency, then It sued again by the first landowner.

The process of lawsuit related to claim against the public to treasury land of Bekayas Village is prosecuted and extends to the Supreme Court and have got the verdict from the Supreme Court. Result show that village of Bekayas declared lose in this case

Conform

2. Tatang (Management of Village Cooperation of Lembah Mukiti)

Farmers of Lembah Mukti Village about 67 families have received SK as Candidate Plasma (CPP) and since January 2012 have started saving 30% of its oil crops with a value of installment Rp.807 million, but untill now are not carried out credit agreement yet. Villagers of Lembah Mukti called immediately to execute the contract.

Delays in the signing of the contract because the company wants the contract is executed simultaneously with the CPP from other villages that they still waiting for the issuance SK of CPP from Ketapang Regent

Conform

3. Nur Kalim, locals at Air Upas

PT. PSA respond local residents problem too slow. It is related to broken

Request of local residents about suggest of repairing road

Conform

15:00 Closing meeting

17:00 Trip to Pangkalan Bun

16 Jan 2016 Day 6th

08:00 Trip to Jakarta



road and bridge whereas they are the important access for transporting fruit from local estate to mill of PT. PSA.

and bridge, has been accepted by Company Leader. But at this time, the Company is reforming the management so the Company respond is a bit slow. Repairing of water-channel will be conducted on February 2016.

4. Agus Purwanto, young generation in SP-6 Village

- Plasma farmer in SP-6 Village has not registered as CPP for conducting agronomy activity in estate independently without any technical support from PT. PSA and there are 16 farmers of oil palm that sale the FFB to Koperasi Bukit Selendang Jaya. The farmer also repair the bridge independently.

- Hope that CSR Program – new management of PT Poliplant is better than previous Company.

PT. PSA will be have a Training Plan for Plasma Farmers. Repairing of Infrastructure is part of CSR Plan 2016.

The implementation will

be checked during the

next surveillance audit

5. Silo Utomo, local resident at SP-4 Village

PT. PSA act discriminatively in order to recruit worker (Aloysius Lada, local resident of SP-5 Village) but, this matter is protested by local residents and state that PT. PSA is not act discriminatively not only in around estate but also in mill.

There is no discrimination in the worker recruitment. a procedure for a recruitment has been in place.




6. Yusuf Effendi, management of koperasi SP-3 Village.

- Application of penalty about 3 – 4% towards FFB from local farmer consider that it was too high.

This matter has been set by Government of Ketapang.

Conform

- Suggests that the Company provided heavy equipment for improving infrastructure in SP 3 for road repairing

Repairing of Infrastructure will be revised and conformed with CSR Plan 2016

Conform

- So far there has been no CSR program in SP 3, while road is damaged since it went across by transport truck of FFB

Repairing of Infrastructure will be revised and conformed with CSR Plan 2016

Conform

- Local residents ask company to Refer to replanting plan, it is The implementation will



donate seedlings for their replanting

depend on the scheme that will

be conducted



7. Alosyus Lada

- Socialization of HCV has been conducted twice in Harapan Jaya village but there is still no pangolin and deer trading.

- There is still discrimination in the recruiting of Aryawan, because there are college student from Flores are rejected while college student from Pontianak are accepted.

There is no discrimination in the worker recruitment. a procedure for a recruitment has been in place.




8. Works union: SP/SB: SP Mandiri Perkebunan Poliplant Bersatu (SPMPPB)

- A new union is formed - Granting leave (cuti) is

appropriate, 12 working days every year.

- Hours of work are appropriate, starting at 06:00 am and finish at 13:00 in the noon

- Extrafooding was not provided to the workers everyday

- PPE for workers was not adequately provided by the company

This Issue will be followed up and rectified with related section




9. Camat Air Upas (Drs.

Sugiarto)

Things are presented as follows:

- Location of oil palm plantations

PT. Poliplant as much as 90% is

located in the Air Upas district

while the remaining 10% is

located in the District of Manis

mata.

- PT. Poliplant has built village

estates in the Village of Air Upas

about 6 Ha.

- Development of independent

smallholdings in village of

Sengkuang and village of

Company has prepared all

necessary documents

(HCV, SIA, HCS) for

RSPO New Planting

Procedure application for

extension of PT.PSA

Plasma Mandiri with total

area 785.3 Ha. Public

notification has over and

completed and RSPO

Observation,

implementation will be

seen in the nest

surveillance audit.



Harapan Baru already completed

the preparatory stage and waiting

for its implementation.

- The realization of plasma phase-

1 for 700 ha not yet started

- Subdistrict Head received reports

of complaints from some of the

villagers around the estates PT

Poliplant who claim that their land

is used by the company and was

not received compensation. The

parties who filed the complaint

are:

1. Madin, Air Upas village

residents, said the land has not

been compensated by

hundreds of hectares wide.

2. Cicilia Ucut, claimed to have

area of 2 Ha located around the

office of previous PT. Poliplant,

has not been compensated by

the company.

3. Sanar, claimed to have a

land area of 40 Ha located

around the office of previous

PT. Poliplant, has not been

compensated by the company.

confirmed that land

clearing activities can be

started on 09th May 2016.

All areas claimed by

claimants are within

PT.Poliplant HGU

consession. PT.Poliplant

HGU was issued by the

National Land Agency No:

139/HGU/BPN/ 1997 in

Ketapang District, West

Kalimantan Province

covering of 4,004.5 Ha

with a validity period for 35

years untill February 19,

2034.

Company has proper SOP

to handle all land claim

and acquisition process:

SOP Pembebasan Lahan

NO:

LCP/PPG/HUMAS/01/SOP

last revision 13 Jan 2016.

10. Head of Sector Police (Kapolsek)

Air Upas which is represented by

Kapospol Air Upas / Marau

(Brigadir Polisi Harahap).

- In 2008, according to reports of

locals received by the police,

once, there is contamination of

the river derived from waste of

PT. Poliplant has a procedure for waste management. Prevention pollution should be in place. For current condition, there is no case related to river

Will be checked to the

environmental local

government



PT Poliplant and there has been

a settlement. After that, the police

never received a report related to

river pollution.

- Land claim by local residents,

was not significant but land

issues was still potential for

conflict and might be appear at

the time of replanting.

pollution.

B. 5. Date of Nexts Surveillance Visit

One (1) year after date of certification

C. Assessment Findings

C. 1. Lead Assessor’s Summary and Recommendation for Certification

The audit is conducted jointly Roundtable on Sustainable Palm Oil (RSPO) Certification Scheme and

Indonesian Sustainable Palm Oil (ISPO) Certification Scheme. There are 1 (one) mill and 1 (one)

estate has been audited at the same time during preliminary audit (19 – 22 August 2015) and

certification audit (January, 11th-15th 2015). Some of the issues between ISPO and RSPO are mainly

same such as commitment to transparency, compliance with applicable laws and regulations,

commitment to long-term economic and financial viability, environmental requirements, social

aspects, best practices of estates and mill and continuous improvement. The significant differences

which is only for RSPO requirements such as term of findings, HCV’s issue, SIA, sexual harassment

requirement, specific requirements of contractor (should be meet with manpower regulation and well

trained), NPP requirement and Supply Chain Certification System.

The Mill and estates has been visited during preliminary and certification audit (no sampling).

The management (Mill and estate) showed the commitment to the implementation of the principles

and criteria of the RSPO 2013 and RSPO SCCS 2014. The assessment has been carried out

through field visit to mill and estate.

The public announcement for certification has published on RSPO website prior 30 days from the



audit certification to give the opportunity to stakeholders for comments and feedback. Public

Announcement has been sent to client, RSPO, andSucofindodated 16 November 2015, with letter

no. 10614/SERCO-XI/RSPO/2015. In the letter stated that certification audit on date December 14 –

18 2015 but revised to be dated January 19-22, 2016 to adjust with ASI schedule for witness

accreditation.

There is no a grievance or complaints received from the stakeholders during 30 days of public

consultation period. Team auditors also conducted meeting with village head, local community, union

labor team, and government official representatives. There is some clarification received regarding

the HCV issue, conflict land, Socialization of Rare and endangered flora and fauna, transparancies,

charity, etc.

There are 14 NCR majors, 10 NCR minors, and 3 observations issued during certification audit.

There is commitment of management to make corrective action and for continuous improvement. So

far, there are 5 minors and 7 observations that will be seen in the next surveillance audit. There is

also improved plan for social and environmental area.

The audit team found that PT. Poliplant Sejahtera – Siriham Mill and Siriham Estate are complying

against RSPO P & C 2013 and SCCS 2014 Module E. Therefore the recommendation of the Lead

Auditor that Certificate of RSPO is awarded to PT. Poliplant Sejahtera – Siriham Mill and Siriham

Estate.

Signed by:

Nuzwardy Sjahwil

August 2016

C.2. Summary of the Findings by Criteria

1 COMMITMENT TO TRANSPARENCY

1.1 Oil palm growers and millers provide adequate information to other stakeholders on environmental, social and legal issues relevant to RSPO Criteria, in appropriate languages & forms to allow for effective participation in decision making.

1.1.1 Evidence should be provided that information is received in appropriate form(s) and



Minor language(s) by relevant stakeholders. Information will include information on the RSPO mechanisms for stakeholder involvement, including information on their rights and responsibilities.

The Company has had Document of “Principles of Our Guidance” consist of the Company policies

regarding to provision of information policy, available on page 26. “We safeguard the information,

assets and Cargill’s interest”. The letters of request and respond of the Company to information

request from stakeholders are available.

The Company has had list of relevant stakeholders.

The Company has not had :

a. System for setting frequency to update stakeholders list

b. The type of information that available for each stakeholders

c. The Company has not yet identified type of information specifically that needs to be provided

periodically to relevant institutions. SOP just attached periodic reports regarding to

environment aspects.

d. SOP is not consist of explanation/process about sharing and socialization of types of

information to relevant stakeholders.

e. At meeting with stakeholders that represent the cooperatives, local man, religious and village

chief, it was found that they did not know the type of information that can be accessedand

procedure in accessingthe information.

In SOP and meeting with stakeholders, it was found that during this day, information is not acquired

and information request did not obtain time assurance for answering the information request.

Sampling of incoming letter dated 10 September 2015 Registration No. 05/TAD-AU/IX/2015 from

Temenggung Adat Dayak. It contains notification about settlement as Dayak Tradition regarding to

dispute between Div 1 Assistant and workers. The settlement of dispute by paying fine of 36 dishes

to Div 1 Assisstant and 12 dishes to workers. All dishes have been distributed to Government and

the Company representatives.

Conclusion : Minor, NCR No.13

1.1.2 Records of requests for information and responses shall be maintained.

Major

The Company has been recorded all requests and responses information from stakeholders. In SOP

and its implementation, the Company has not yet set the periode of time to give the answer towards

the information request. At the time meeting with stakeholders, information was obtained that they



are never given the certainty of time to any request for information submitted to the company. For

example : related to demand of repairing roads, bridges and water-channel that delivered to

representative of plasma SP3, SP5, SP6. Plasma does not procure the answer and certainty of time

on paper of that request. So that, the conclusion become Major Nonconformity No. 14.

The Company has conducted corrective action through procedure No. COM/PPC/CA/01/SOP:

Receive information and complain and conflic settlement. Procedure has been established hierarchy

of response and durationof information response not longer than 14 workdays. This finding then

degraded as observation pending the implementation that will be seen in the upcoming surveillance

audit.

Conclusion : Observation, NCR No.14

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

1.2.1 Publicly available documents shall include, but are not necessarily limited to:

(Criteria 5.1, 6.1, 7.1 and 7.8);

ollution prevention and reduction plans (Criterion 5.6);

Major



The Company could not show SOP about request and information response, which include:

information that is allowed to be accessed by the public, how to provide the information, and officer

who received and answered letters. Availability of List of Documents to the public and authority

approval document Rev.01-12/08/15 was prepared by the Sustainability Manager (Yogi Wicaksono)

and approved by the President Director (Anthony Yeow). Records of information requests and

responses are available.

Conclusion : Conform

1.3 Grower and millers commit to ethical conduct in all business operation and transaction

1.3.1 There shall be a written policy committing to a code of ethical conduct and integrity in all operations and transactions, which shall be documented and communicated to all levels of the workforce and operations.

Minor

The Company has had a code of ethical conduct policy in a code of conduct book 3rd edition 2012.

The contents of this book include business ethics, prevention of corruption and briberyin the guiding

principles no. 2. Socialization is conduct through the signing of Cargill Codeof Conduct Certification

by the Estate Manager Assistant division on August 15, 2015


2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

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

2.1.1 Evidence of compliance with relevant legal requirements shall be available.

Major

Organization has processed the compliance towards laws and regulations of K3 as indicated on the

record of re-testing of K3 equipment that was conducted such as 2 boilers with a capacity of 30

ton/hour and 40 ton/hour, Sterilizer, Steam turbines, Diesel motors, Pressure vessels, Static craine,

Hoisting craine, Forklifts, Wheel loaders. But, for the certification of electrical installations since

October 1, 2007 there has been no check on reset. Because of that the organization is conducted a

test check on November 3, 2015 for electrical installations and also permission boiler, stew, BPV,

steam turbines, diesel motors, static cranes, hoisting cranes, pressure vessels. Currently,

submission of test is being taken care by K3 controller of Disnakertrans Ketapang (Djaswadi)

The Company has had health clinic, but there was no operational permit from the District Health

Office Ketapang (Still on Management Process). The Company doctor yet appointed Hyperkes

doctors from the Ministry of Labor (Permenaker no. 03 1982 chapter 5).



So, organization has submitted permit of clinic to the Office of Integrated Services of Ketapang, by

letter no. 601/0/018/KPT/2016 dated January 7 of the instutition that the organization is taking care

of permit application pratama clinic. Dr. Ali Hinduan, doctor’s Company, regarding to a certificate

from Balai Hiperkes Yogyakarta no. 566.1/3540 on October 2, 2015 has been conducted Hiperkes

and K3 training for The Company doctors on September 28 to October 3, 2015. The doctor has been

filed the petition as The Company doctors based on information from Dinsosnakertrans Ketapang

no. 560/78/STKT-C/2016 on January 11, 2016. Ulfa Ariyani Am.Keb, a midwives, has been did

Hiperkes training on 7 to 11 December 2015 in Disnakertran Jakarta. Also, there was Hiperkes

certificates for Dimas Rodiansah A.M.K., paramedics of the Company.

The Company carried out an internal audit at least once a year that is set in the Internal Audit

procedures (PPG/MR/009/SOP-Internal Audit). SOP Internal Audit state that all the elements RSPO

has been audited and it includes regulatory compliance. Evaluation of the fulfillment of the last rules

carried out on December 2015. Review of the fulfillment of regulatory is firmed the structuring in the

management review. Final management review conducted on August, 2015.

Sampling associated with government regulations for BPJS. The results of the audit conducted on

29-31 July 2015, in it identified number of employees who are already registered for BPJS about 320

people and BHL employees have not been included.

Preferably, in SOP regulate matters that need to be updated as soon as possible (do not wait untill

six months) towards regulations should be implemented as soon as possible, for example, the

application of UMK or prohibition for using of certain chemicals.


2.1.2 A documented system, which includes written information on legal

requirements, shall be maintained. Minor

There is a procedure for identification of legal and other requirement and evaluation of compliance,

The Company has identified and evaluated compliance of the applicable legislation and its change

periodically (1 year).


2.1.3 A mechanism for ensuring compliance shall be implemented.

Minor

The Company has documented procedure for identification of legal, other requirement and

evaluation of compliance. The Company has conducted evaluation to the compliance of the



applicable legislation


2.1.4 A system for tracking any changes in the law shall be implemented.

Minor

In order to identify and tracking any change in the regulation, The Company has documented it in a

procedure for identification of legal and other requirement and evaluation of compliance, the

Company identifies and evaluates compliance of the applicable legislation.

SOP waste management No. PAS/PPG/EHS/32/SOP should be revised, related to reference of Law

regulation that has been expired such as PP 18/1999, PP 85/1999 and BAPEDAL decree 05/1995.

This finding was raised as minor nonconformity no. 10. As corrective action the Company has

updated law regulation on February 2016 about PP 18/1999, PP 85/1999, and BAPEDAL decree No.

05/1995. It was replaced with PP No. 101/2014, and Permen LH No.14/2013 respectively. This

corrective action has been considered adequate.


2.2 The right to use the land is demonstrated, and is not legitimately contested by local people who can demonstrate that they have legal, customary or user rights

2.2.1 Documents showing legal ownership or lease, history of land tenure and the actual legal use of the land shall be available.

Major

Site Permit

The Company already has a location permit issued by the Governor of First Level Head of

West Kalimantan Province No. 155 of 1990 about reserve and location permit, totaled 39,700

Ha for Palm Oil Plantation with PIR TRANS system on behalf of PT POLIPLANT SEJAHTERA

in Manis Mata and Murau Subdistrict, Subdistrict of Second Level Region of Ketapang, West

Kalimantan Province.

The Company has Extension Permit Site for the purposes of the Palm estates project with PIR-

TRANS system on behalf of PT POLIPLANT SEJAHTERA No. 3793/1993, totaled 39,000Ha.

IUP (Estates Business Permit)

The Company has Estates Business Registration License (SPUP) No. 198/Menhutbun-

VII/2000 which states that the designation of area for Palm Oil Plantation with an area of



4004.5 ha and 1 unit PKS with 60 Tons capacity of FFB/ hour. This is raised as Major Non

Conformity no. 01 (appendix 2) and corrective action taken as written in the appendix 2

(column 8) is considered adequate therefore this major NC finding can be closed

Permanent Business License

The Company has a permanent business license issued by the Head of the Investment

Coordinating Board No: 884/T/PERTANIAN/INDUSTRI/2007 with capacity of 95,200 ton/year.

At the time of thestage II audit there was difference of capacity between installed capacity

SPUP No. 198/Menhutbun-VII/2000 (60 Tons of FFB/hour) with a Permanent Business

License about 95,200 tons/year and The Companyhad gave responses by presenting the

Industrial business permit from Department Industry and Trade of Kab.Ketapang No.

353/002/Kop.UKM.Perindag-C/KBLI.15144/I/2013 with capacity of 60 tons/hour.

Release of Forest Area

Based on Padu Serasi Map and RTRWP of West Kalimantan (Kalbar Regulation No. 1/1995) is an

area of cultivation of food crops and plantations.

The Company already has a Minister Decree No. 50/ Kpts-II/1996 about release of some forest

areas located in Forest Group Sarang Membuluh and Silat River, Level II of District of Ketapang with

number of 16,418 on behalf of PT POLIPLANT SEJAHTERA. In letter of release of forest area was

decided to give HGU (Land Use Permit) for 35 years to PT POLIPLANT SEJAHTERA with area of

4004.5 Ha.

Hak Guna Usaha (HGU)

HGU Decree

The Company has SK HGU issued by the National Land Agency No: 139/HGU/BPN/97 about

granting of HGU of land in Ketapang District, West Kalimantan Province,covering area of 4004.5 Ha.

HGU Certificate

The Company has HGU certificate No.6 located in the village of Sarang Membuluh and Silat River in

Manis Mata Subdistrict, Ketapang, West Kalimantan Province (NIB: 1407060000188). Stated in the

certificate area of 4004.5 Ha with a validity period for 35 years untill February 19, 2034.

Conclusion: Conform



2.2.2 Legal boundaries shall be clearly demarcated and visibly maintained.

Minor

The Company already has a list of coordinates HGU stakes as much as 20. The Company also had

SOP for inspection BPN stakes that conducted once every 6 months. SOP aims to ensure that the

boundaries of the Company tracked and monitored properly, so that the actions is required for

maintaining can be determined appropriately.


2.2.3 Where there are or have been disputes, additional proof of legal acquisition of title and evidence that fair compensation has been made to previous owners and occupants shall be available, and that these have been accepted with free, prior and informed consent (FPIC).

Minor

Based on evidences that documented, there was Land lawsuit that has not finished such Anang Dari

case. This case has been discussed in meeting with Department of Agriculture of Ketapang district

on September 21, 2011. Based on the information from Air Durian Village in meeting’s note that land

was transfered from Maicam, Mencalang, Galis, Galing.


2.2.4 There shall be an absence of significant land conflict, unless requirements for acceptable conflict resolution processes (see Criteria 6.3 and 6.4) are implemented and accepted by the parties involved.

Major

The case described above on clause 2.2.3, does not prevent the company from operating normally

and harvesting operation still can be conducted normally and therefore cannot be categorized as

significant conflict.


2.2.5 For any conflict or dispute over the land, the extent of the disputed area shall be mapped out in a participatory way with involvement of affected parties (including neighbouring communities where applicable). Minor

Organization has created Land Map. Organization has been conducted Land investigation and

growing plant on September 27, 2011. From Land investigation result is known that the location

separated from HGU kernel location. Location of K34-36 has banned by Air Durian Society as

location that transfered by Anang Dari.


2.2.6 To avoid escalation of conflict, there shall be no evidence that palm oil

operations have instigated violence in maintaining peace and order in their

current and planned operations. Major



The SOP No. COM/PPG/CA/01/SOP (Receiving Information Complain and Conflict Settlement)

already eliminates the role of the Police/Army if there is anarchy in the society. Instead of using

police/army the Company will take legal action.

From survey at the field, The Company was not place Military Manpower in estate. Estate Security

has been conducted by security guard.


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

2.3.1 Maps of an appropriate scale showing the extent of recognised legal, customary or user rights (Criteria 2.2, 7.5 and 7.6) shall be developed throughparticipatory mapping involving affected parties (including neighbouringcommunities where applicable, and relevant authorities).

Major

Organization has not have SOP FPIC. On the land acquisition procedure LCP/PPG/PR/02/SOP

there was no FPIC. There was map of estates which also drew the lands that are not controlled by

the organization as illustrated in the map of HCV in report on October 12 and SIA conducted by

Daemeter on November 6, 2015 report, but the map is still too small, less than 1: 10,000. This

evidence has been raised as major nonconformity no. 3 in appendix 2. The company has made

corrective action as written in appendix 2 no. 3 columns 8 which is considered adequate by auditor

and closed.

PT. PSA Palm Oil plantation was built with the PIR Trans referring to Presidential Decree No.

1/1996. PIR Trans Participants consists of migrant communities and local communities. By that

rules, acquistion of plantation land did not apply process of GRTT. The locals who hand over their

land (through the Government of Ketapang) to built the estate will become priority of PIR trans

participant.

There are document of migrant placement about 3,938 of families in the area of smallholdings PT

PSA based on the Minister of Transmigration and Forest Encroachment, Ministers of Agriculture,

Forestry is agriculture ministerial decree No. 541/Kpts/KB.510/7/90 about project implementation

plan PIR-TRANS palm oil in S. Merau and Manis Matta, Ketapang district, West Kalimantan on July

31, 1990, Decree No. 46/MEN/1993 dated July 21, 1993 about Implementation of PIR-TRANS

permit at the location S. Maraud and Manis Mata. Approval of Palm Oil Development PIR-TRANS

principles No. KB.320/ 701/Ministry of Agriculture/XII/89 dated 5 December 1989.




2.3.2 Copies of negotiated agreements detailing the process of free, prior and informed consent (FPIC) (Criteria 2.2, 7.5 and 7.6) shall be available and shall include:

a) Evidence that a plan has been developed through consultation and discussion with all affected groups in the communities, and that information has been provided to all affected groups, including information on the steps that shall be taken to involve them in decision making;

b) Evidence that the Company has respected communities’ decisions to give or withhold their consent to the operation at the time that this decision was taken;

c) Evidence that the legal, economic, environmental and social implications for permitting operations on their land have been understood and accepted by affected communities, including the implications for the legal status of their land at the expiry of the Company’s title, concession or lease on the land.

Minor

This land was acquired long before the implementation of RSPO. Based documentation audit, this

land was acquired based on the Minister of Transmigration and Forest Encroachment, Ministers of

Agriculture, Forestry is agriculture ministerial decree No. 541/Kpts/KB.510/7/90 about project

implementation plan PIR-TRANS palm oil in S. Merau and Manis Matta, Ketapang district, West

Kalimantan on July 31, 1990, Decree No. 46/MEN/1993 dated July 21, 1993 about Implementation

of PIR-TRANS permit at the location S. Maraud and Manis Mata. Approval of Palm Oil Development

PIR-TRANS principles no. KB.320/701/Ministry of Agriculture/XII/89 dated December 5, 1989.


2.3.3 All relevant information shall be available in appropriate forms and languages, including assessments of impacts, proposed benefit sharing, and legal arrangements.

Minor

This land was acquired long before the implementation of RSPO. Based on documentation audit,

this land was acquired based on the Minister of Transmigration and Forest Encroachment, Ministers

of Agriculture, Forestry is agriculture ministerial decree No. 541/Kpts/KB.510/7/90 about project




PIR-TRANS principles No. KB.320/701/Ministry of Agriculture/XII/89 dated December 5, 1989.


2.3.4 Evidence shall be available to show that communities are representedthrough institutions or representatives of their own choosing, including legal counsel.

Major

This land was acquired long before the implementation of RSPO. Based on documentation audit,

this land was acquired based on the Minister of Transmigration and Forest Encroachment, Ministers



of Agriculture, Forestry is agriculture ministerial Decree No. 541/Kpts/KB.510/7/90 about project




PIR-TRANS principles No. KB.320/701/Ministry of Agriculture/XII/89 dated December 5, 1989.


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

3.1.1 A business or management plan (minimum three years) shall be documented that includes, where appropriate, a business case for scheme smallholders.

Major

The Company has had long periode plan 2015/2016 untill 2021. In the plan has been consisted of

Replanting plan of core and plasma, yield, CPO volume and PK, OER, scheme smallholder. The

Company has had plan for 3 years. Start from 2016-2018 to do mechanism of harvest activities and

fertilization. In the plan, contained of total worker and application area.

The Company has not have long periode plan regarding to : Forecast pricest, cost of production,

financial indicators, and projected expansion.

The Company has been had replanting plan in 2018-2021. On previous Planting year’s data was

3794.6 Ha for core and 7746 for Plasma. Replanting plan still in the same vest (area) and has not

contained area deficiency that can be planted because it is appropriate with HCV category.

The Company has had system regarding to technology maintanance and information about repairing

process activity that is communicate on management meeting observation.

The Company did not have peat land in area that divised.

The Company has had replanting plan by putting reduction of previous HCV that planted is 3794.6

Ha become 3524.44 Ha (Reduction is about 270.01 Ha for HCV area).


3.1.2 An annual replanting programme projected for a minimum of five years (but longer where necessary to reflect the management of fragile soils, see Criterion 4.3), with yearly review, shall be available. Minor

Annual Review consisted of production such as TM area, FFB, Yield, Fertilization, harvest,

Transport, Field infirect. There were eveluation towards deviation between budget and realization.

Fertilize realization was a bit more than that of the budget. Based on eveluation, it said that



realization more little because of delay of fertilization arrival so that it was not appropriate with

fertilization schedule. Result of evaluation should be consisted of remedial action for prevent the

problem in the further time.


4 USE OF APPROPRIATE BEST PRACTICES BY GROWERS AND MILLERS

4.1 Operating procedures are appropriately documented and consistently implemented and monitored

4.1.1 Standard Operating Procedures (SOPs) for estates and mills shall be

documented. Major

The Company has had SOP cultivation of land clearing until replanting. It was recorded in

PPG/GMO/ASD/01/SOP-PPG/GMO/ASD/80/SOP documents. In SOP, The Company also set about

clearing land without burning that arrange in PPG/GMO/ASD/11/SOP.

The Company has had SOP that recorded in Poliplant Integrated Management System (PIMS)

Procedure. The Company has the SOP for section work units (stations) of each, such as:

• PIMS Loading Ramp (No. P-PIMS-PRS-01)

• PIMS Sterilizer (No. P-PIMS-PRS-02)


4.1.2 A mechanism to check consistent implementation of procedures shall be in place.

Minor

The Company did harvesting up to 18 days. From the data of harvesting workerof PT PSA contained

amount of harvesting worker as many as 164 people, but in the extent of harvest labor

requirements,it should harvest 182 people, so it causing shortages of 18 harvest labor. The

Company should meet the shortage of harvest immediately so that the production target has been

determined can be achieved and anticipatethe crop rotation is not too long.

The Company has a monitoring mechanism for each activity, as in the implementation of rotational

harvesting that have been defined in SOP about <15 days and no past of 20 days. The Company

has monitoring crop rotation, such as harvesting that conducted in Blok K48 up to 18 days, so that it

is still accordance with SOP.


4.1.3 Records of monitoring and any actions taken shall be maintained and available, as appropriate.

Minor



The company has recorded the operational monitoring both at estate and mill. For example

harvesting, manuring, spraying acvities at estate and the pressure of sterilizer, temperature of

digester at mill, as well as maintenance records.


4.1.4 (M) The mill shall record the origins of all third-party sourced Fresh Fruit Bunches (FFB).

Major

The Company already had data for each FFB origin that enter PKS and documented in Mill

Operation Summary Crop and Production, the following below is a documentation of FFB Origin (Kg)

in 2015:

Supplier FFB (Kg)

Plasma &

PKRG

175,802.50

MAI 8,455,280

ASM 5,244,120

AAI 9,308,850

ASL 4,559,830

Total 203,370.58


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

4.2.1 There shall be evidence that good agriculture practices, as contained in Standard Operating Procedures (SOPs), are followed to manage soil fertility to a level that ensures optimal and sustained yield, where possible.

Minor

The Company already had SOP for soil sampling procedure (PPG/GMO/ASD/08/SOP) and

withdrawal procedure LSU (PPG/GMO/ASD/07/SOP). The frequency of the soil sampling conducted

once in five years, while for sampling leaf (LSU) that used for fertilizer recommendations is

conducted once a year. The Company has taken a leaf sample to be analize.




4.2.2 Records of fertiliser inputs shall be maintained.

Minor

The Company has had SOP manual fertilization No.PPG/GMO/ASD/45/SOP to support optimal

production by improving nutrient in the soil.The Company already had a realization of fertilization

from January untill July 2015:

Type of Fertilizer Realization (Kg) Jan-

Juli 2015

Realization (T)

Agust-Des 2015

NPK 13-6-27-4+TE 643,750 -

CIRP 152,650 -

HGF-B 1,680 -

Urea - 2,011.5

RP - 2,415

KCL - 1,809.8

TSP - 163

Kiesrite - 1,479.2

Borate - 51.3


4.2.3 There shall be evidence of periodic tissue and soil sampling to monitor changes in nutrient status.

Minor

The Company has conducted soil sampling for analysis of the availability of nutrient elements in the

soil. The Company sent a sample of 104 soil samples on October 1, 2015 to PT Central Alami

Resources Lestari with No Ref. 218/poly/asd/12/2015.


4.2.4 A nutrient recycling strategy shall be in place, and may include use of Empty Fruit Bunches (EFB), Palm Oil Mill Effluent (POME), and palm residues after replanting.

Minor

To improve soil fertility, The Company also conducted empty fruit bunches (Tankos) application at a



dose of 50 tons/Ha. The realization of jankos application for each division as follows:

Division 2015 (Kg)

I 3,074,750

II 5,023,170

III 2,242,230

IV 3,102,773

V 1,607,780

TOTAL 15,050,703


4.3 Practices minimize and control erosion and degradation of soils.

4.3.1 Maps of any fragile soils shall be available.

Major

The Company has had map of land conditions that appropriate among land with palm oil plant by

scale of 1: 60,000. In the land condition map, PT PSA is divided into 3 parts:

1. Mineral = 3,084 Ha

2. Sand = 668.05 Ha

3. Swamp = 42,4 Ha


4.3.2 A management strategy shall be in place for plantings on slopes above a certain limit (this needs to be soil and climate specific).

Minor

The Company has had SOP of manufacture individual core and contour core as a management

strategy for planting in slopes area with the aim for providing optimal space and potential soil fertility

that can be maintained in a long period of time and prevent erosion. The standard already

established by The Company to the slopes area as follows:

• The slope of 3-8% is made for hooves or individual terraces



• The slope of 8-10% is made for contour core/terraces

• Piling is conducted to whole cultivable area.

• The distance between plants in North-South is 9.21 Meter

The Company has SOP for road maintenance with Doc.No. PPG/GMO/ASD/34/SOP. As for the

timing of road maintenance is conducted before peak harvest and during the dry season.


4.3.3 A road maintenance programme shall be in place.

Minor

The Company has had road improvement plan 2015 and in 2015 has conducted road maintenance

by piling up 23,131 metres road with 16,810 M3.


4.3.4 Subsidence of peat soils shall be minimised and monitored. A documented water and ground cover management programme shall be in place.

Major

The Company does not have peat areas, it is based on the identification of type of The Company soil

that has mineral soil types, Sand and Swamp.


4.3.5 Drainability assessments shall be required prior to replanting on peat to determine the long-term viability of the necessary drainage for oil palm growing.

Minor

The Company does not have peat areas, it is based on the identification of type of The Company soil

that has mineral soil types, Sand and Swamp.


4.3.6 A management strategy shall be in place for other fragile and problem soils (e.g. sandy, low organic matter, acid sulphate soils).

Minor

The Company has strategy to overcome soils frail such assandy areal in PT PSA that used for

strategy of using empty fruit bunches (Tankos). It is useful to improve the structure of nutrients in the

soil contained in SOP PPG/GMO/ASD/66/SOP.


4.4 Practices maintain the quality and availability of surface and groundwater.



4.4.1 An implemented water management plan shall be in place.

Minor

Water Management Plan of estate and mill has included in SOP Water Management Plan

PAS/PPG/EHS/21/SOP. Water management is conducted through the protection of riparian areas,

regular water quality testing, water treatment in WTP for water demand in mills & domestic around

the mill.

The water resource for operational activities in the Siriham PKS and domestic activities around PKS

from Siriham River surface water which is collected in a reservoir. Water from reservoir is processed

in Water Treatment Plan and distributed to processes needs and domestic. Tests on water quality

WTP for domestic needs is conducted every 6 months with reference to the Permenkes 416/1990 to

clean water. Tests were conducted on October 2015, showed results that meet The Company quality

standards. The Company has had a permit retrieval and utilization of surface water from Decree of

Regent of Ketapang No. 616.4/83/Distamben-D/2013 dated February, 19 2013 that is valid for 3

years. Volume of water is allowed to be taken is 332,886 m3/year. Based on water usage data in

2014 was 332,949 m3, it exceeds the permitted volume of water to be taken. Based on finding of

stage I above, The Company had made additional submissions for water needs to Distamben

agencies in West Kalimantan province and has been approved with no. 540/842/ Distamben B. 2

about changes the quantity of surface water.

Data of water usage during December 2015 for boiler water and mill process amounted to 25,641 m3

and compared with FFBmanagement data on December 2015 about 20,599.32 tons, water use

efficiency was found about 1.24 m3 /ton of FFB. Based on data from January until December 2015,

the efficiency of water usage is 1.04 to 1.33 m3/ton of FFB.

Aside from the water surface, the water needs for domestic activities taken from underground water

and wellsprings. As form of monitoring of the quality water usage, The Company tested water wells

located in the div 1 employee inn, div 2 employee inn , div 3 employee inn, div 4 employee inn, div 5

employee inn and G 36 wellspring every 6 months. Results of testing is conducted on October 2015

by PT. Unilab Perdana accordance with Permenkes 416/1990. The Company plans to carry out

further processing of the underground water with Reverse Osmosis System.

Identification of other water sources located in the plantation area of PT. PSA has conducted through

NKT/HCV report. There are several rivers around the estates areas such as Garu River, Siriham

River, Silat River, and River Kendawangan. The Company did periodical testing every 6 months as



one of monitoring form of river water quality. Results of testing conducted by PT. Unilab Perdana on

May 2015 and sampling site located in upstream of Garu river, downstream of Garu river, Batar river,

Siriham river, Silat Tengah river, upstream of Silat river, downstream Silat river and Kendawangan

river accordance with the quality standards that set in PP 82/2001 grade 2.

Conclusion: Conform

4.4.2 Protection of water courses and wetlands, including maintaining and

restoring appropriate riparian and other buffer zones (refer to national best

practice and national guidelines) shall be demonstrated. Major

For maintaining water sources, The Company has decided Work Instruction Markings Buffer Zone

Area & Protected Local Area No. PAS/PPG/EHS/42/INK.06. Dated 27 November 2015 which set the

scope of work, person in charge of work, activity stage, determination of the width of the border

(rivers, streams, lakes), shape and size of boundary markers and step of maintenance buffer zone.

Based on the survey on the field to Sungai Garu in block D43 encountered riparianwide about 10 m,

while according to Presidential Decree 32 of 1990 on Article 16 letter a it is stated that criteria river

border at least 100 m on either side of the great river and 50 m on either side of the creek that is

outside the settlement. While under PP 38/2011 about river states that small riparian river (DAS

<500 km2) width of 50 m either side of the river. This finding was raised as major non conformity no.

18 in annex 2 of this report.

The Company already conducted corrective action by revising the width of riparian river that should

not be any chemical treatment. Revisions include: Garu River, previous width 6 meters to 50 meters,

river batar become 75 meters, and river siriham become 50 meters. This corrective action was

degraded as observation pending the surveillance audit visit.

Oil crops that already planted in riparian rivers and springs have been marked with red paint and did

not allow any treatment of plant that contains chemicals. Each location of NKT/HCV has installed

sign board containing information of the last of tree that is allowed to perform chemical applications

(spraying and fertilization).


4.4.3 Appropriate treatment of mill effluent to required levels and regular monitoring of discharge quality, especially Biochemical Oxygen Demand (BOD), shall be in compliance with national regulations (Criteria 2.1 and 5.6).

Minor

Liquid waste is produced from the processing of FFBin PKS and used as land application through

first managing process in WWTP (POME). The Company has obtained permission of utilization of



waste water on land with an area of 600.21 through Regent Ketapang decree no. 660/232/KLH-

B/2013. Permission set in Ketapang, April 24, 2013 and valid for 5 years. The monitoring of waste

quality is conducted by testing the wastewater once a month in an anaerob 6 reservoir before being

streamed to LA land. The test results of the July-December 2015 is conducted by PT. Unilab

Perdana accordance with LA permit and Kep Men LH 28/2003, BOD5 parameter and pH is still

below the quality standard. Internal measurements were also conducted for discharge waste and pH.

But, results of laboratory analysis of BOD5 parameter on land aplication wastewater that is

conducted every month by Unilab laboratory has not been accredited and raised as minor non

conformity no. 09. The Company has conducted laboratory analyze measurement of BOD5

parameter on 5 February 2016 and carried out by Baristan Pontianak Laboratory that has been

acredited. This corrective action has been considered as adequate.

To monitor the waste that can contaminate ground water due to land application, The Company

monitors it every 6 months at wells-monitor location no. 1, no. 2, no. 3 and no.4.

Management of soil quality in land control, rorak, and inter rorak is conducted every year where the

testing in 2015 is conducted by PT. Unilab Perdana.

Management of the buffer zone can be seen on the principles and criteria 5.2

Conclusion: Conform

4.4.4 Mill water use per tonne of Fresh Fruit Bunches (FFB) (see Criterion 5.6) shall be monitored.

Minor

The Company has/ conducted recording towards monitoring of waste water debit everyday and

counting use of water for FFB process. Based on data from January – December 2015, water use

efficiency was 1.04-1.33 m3/ton of FFB


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

4.5.1 Implementation of Integrated Pest Management (IPM) plans shall be monitored.

Major

The Company has had EWS census (ASD/GMO/04/SOP) SOP to determine the intensity of attacks

and extensive fire of caterpillar pest, caterpillar bags and rats. As the census that was done on July

2015 for detection of mice was conducted at First Division. The average intensity of the attacks



about 0.09% (Light category) so no need for further action.


4.5.2 Training of those involved in IPM implementation shall be demonstrated.

Minor

The Company has had census workers for each Division that are coordinated by foreman of each

division. The Company also has census workers who already chosen as EWS team. The Company

has socialized about SOP of HPT Control on July 7, 2015. The Company also plants host plants

natural enemies such as Turnera subulata and Antigonon.


4.6 Pesticides are used in a way that do not endanger health or the environment.

4.6.1 Justification of all pesticides used shall be demonstrated. The use of selective products that are specific to the target pest, weed or disease and which have minimal effect on non-target species shall be used where available. Major

Has provided a recording of pesticide that was used includes active ingredients contained in it,

LD50, the target area of application, as well as the dosage. The active ingredient used in the

eradication of plant pests, such as deltamethrin, glyphosate isopropyl amine, and methyl metsilfuron.


4.6.2 Records of pesticides use (including active ingredients used and their LD50, area treated, amount of active ingredients applied per ha and number of applications) shall be provided.

Major

There is Non Paraquat Herbicide Use Policy that set by President Director on 15 April 2015. The

results of the monitoring of pesticide used between January and June 2015 are likely to fluctuate.

The Company has established SOP Integrated Pest Management Guidelines No.

PPG/GMO/ASD/03/SOP which includes the use of PPE in the handling of chemicals and adequate

working equipment to avoid environmental pollution.

Mechanism handling of chemicals/pesticides have been set in SOP Chemical Hazards

Communication no. PAS/PPG/EHS/28/SOP rev 0. These procedures include procedures for

handling chemicals, first aid in case of accidents related to chemicals/pesticides, MSDS, labeling

packaging chemicals/pesticides, training for workers who are dealing with substance

chemicals/pesticides, as well as, procedures for storage of chemicals/pesticides.



The Company is in the process of filing for training of handling of chemicals/pesticides to Syngeta for

training by the Pesticide Commission.

Old pesticide containers did not reuse but directly stored in TPS LB3. Management of used pesticide

containers have been set in SOP Waste Management no. PAS/PPG/EHS/32/SOP. Consistency in

the implementation of SOP will be verified during the field visit. There were usage of amount of

active ingredient/Ha as methyl Metsufuron 0.01 Ltr/Ha, Isopropyl Glyphosate Amine with doses of

active ingredient/Ha about 5.05 Ltr.


4.6.3 Any use of pesticides shall be minimised as part of a plan, and in accordance with Integrated Pest Management (IPM) plans. There shall be no prophylactic use of pesticides, except in specific situations identified in national Best Practice guidelines.

Major

The Company has had list of pesticides used. The Company also minimize the use of pesticides for

preventing disease on plant except the level of pests and diseases over the threshold that has been

set. Since February 2015, The Company was no longer using the pesticide Paraquat dichloride.


4.6.4 Pesticides that are categorised as World Health Organisation Class 1A or 1B, or that are listed by the Stockholm or Rotterdam Conventions, and paraquat, are not used, except in specific situations identified in national Best Practice guidelines. The use of such pesticides shall be minimised and eliminated as part of a plan, and shall only be used in exceptional circumstances.

Minor

The Company had a complete list of chemicals that classified as WHO 1A, 1B, and Stockholm

conventions. Currently, The Company is not using paraquat. Non Paraquat Herbicide Use Policy has

been set by the President Director on April 15, 2015.


4.6.5 Pesticides shall only be handled, used or applied by persons who have completed the necessary training and shall always be applied in accordance with the product label. Appropriate safety and application equipment shall be provided and used. All precautions attached to the products shall be properly observed, applied, and understood by workers (see Criterion 4.7).

Major



Mechanism handling of chemicals/pesticides have been set in SOP Chemical Hazards

Communication no. PAS/PPG/EHS/28/SOP rev 0. These procedures include procedures for

handling chemicals, first aid in case of accidents related to chemicals/pesticides, MSDS, labeling

packaging chemicals/pesticides, training for workers who are dealing with substance

chemicals/pesticides, as well as, procedures for storage of chemicals/pesticides

Limited training has been conducted in the use of limited pesticides (GRAMOXON) on 17 September

2015 against 19 people TUS.

Estates provide spray shed facilities such as bathroom and washing facility and room for keeping

PPE and Overalls /appron after used and assigned person for PPE cleaning after work. This is to

ensure all pesticide workers come and go home are clean and safely.


4.6.6 Storage of all pesticides shall be according to recognised best practices. All pesticide containers shall be properly disposed off and not used for other purposes (see Criterion 5.3).

Major

Old pesticide containers did not reuse but directly stored in TPS LB3. Management of used pesticide

containers have been set in SOP Waste Management no. PAS/PPG/EHS/32/SOP. Consistency in

the implementation of SOP will be verified during the field visit.


4.6.7 Application of pesticides shall be by proven methods that minimise risk and impacts.

Minor

Organization has had written procedures related to use pesticide substance in SOP

PPG/GMO/ASD/28/SOP “Procedure of weeds control chemically” and conducted training as for this

SOP.


4.6.8 Pesticides shall be applied aerially only where there is documented justification. Communities shall be informed of impending aerial pesticide applications with all relevant information within reasonable time prior to application.

Major

There is no record that shows the company has conducted pesticide application aerially. The

company does not have equipments and facility to apply pesticide aerially (aeroplane, airfield)


4.6.9 Maintenance of employee and associated smallholder knowledge and skills on



Minor pesticide handling shall be demonstrated, including provision of appropriate information materials (see Criterion 4.8).

The company has yearly planning and has conducted training to the Plasma Farmer in pesticide

handling in 2015.


4.6.10 Proper disposal of waste material, according to procedures that are fully understood by workers and managers shall be demonstrated (see Criterion 5.3).

Minor

Pesticide waste management procedures PPG/GMO/ASD/22/SOP. Pesticide packaging waste did

not reuse but directly returned to the warehouse by warehouse clerk then handed to TPS B3 waste.


4.6.11 Specific annual medical surveillance for pesticide operators, and documented action to treat related health conditions, shall be demonstrated.

Major

List of workers related to pesticides have been provided about 24 workers. Pesticides workers have

gained general medical examination annually on July 29-August 1, 2015. The last special medical

examination was conducted on December 2014. From the conclusion of the cholinesterase, it were

found 11 people affect by light cholinesterase and is recommended by doctors for using (Personal

Protection Equipment) PPE, while 3 people have light-moderate levels of cholinesterase. They were

Yatinem, Turkini, and Zainal. Currently, that worker has not worked in related to pesticides. Further

medical examination was planned on September 7, 2015.

Has conducted spirometry and cholinesterase examination for chemical handlers on November 3,

2015 towards TUP 47 people, TUS 23 people. Based on data from examination report dated 2

January, TUP 7 people experience a mild downturn, one person experience a medium downturn.

One person (Hana Sijoi) moved to another side, are not contact with the chemical. In TUS mild in 8,

15 normal.


4.6.12 No work with pesticides shall be undertaken by pregnant or breast-feeding women.

Major

Employed women who are pregnant and breastfeeding prohibited from doing work related to

chemical pesticides as defined in Procedure Weed Control Chemist No.PPG/GMO/ASD/28/SOP and

Pregnant and Breastfeeding Workers Determination HRD/PPG/MED/04/SOP, especially



emphasized in clause 4.2.1 which imposed a ban on working with chemicals up to 2 years for

women who are breastfeeding up to 2 years. The mechanism ensure that no woman worker doing

work with chemical pesticides in pregnant condition. The Company conducts pregnancy tests every

4 months but in the procedure stipulated once in 3 months. In the stage II of audit has been

conducted medical examination once every month starting from August 2015 to December 2015. On

the results of pregnancy tests on December 2015 note 1 person pregnant. Based on letter of

Midwives Ulfa Aryani on December 4, 2015 state that start on December 7, 2015 was transferred to

another division that is not related to chemicals.


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

4.7.1 A health and safety policy shall be in place. A health and safety plan covering all activities shall be documented and implemented, and its effectiveness monitored.

Major

The Company has set a policy that is integrated Environment, Health and Safety, Quality and Safety

of Food, corporately signed by the Chief Executive Officer and President Director of PT. Poliplant

Group, on April 1, 2015. K3 policy already contains a commitment to improve the performance of K3,

communicate policies and procedures to all employees and stakeholders, obey laws, identifying and

assessing, and controlling all the risks and perform continuous improvement to prevent workplace

accidents and occupational diseases.

K3 policy communication was conducted through various ways such as through the morning master,

induction of new employees and contractors, P2K3 monthly meetings, management meetings, or

display in workplaces. The Company also has established a work program of K3 part in form of

P2K3 Work Program.


4.7.2 All operations where health and safety is an issue shall be risk assessed, and procedures and actions shall be documented and implemented to address the identified issues. All precautions attached to products shall be properly observed and applied to the workers.

Major

The Company has established procedures to conduct assessment of operational risks that could

threaten the safety and health, that is SOP Identification and Evaluation of Environmental Aspects



and K3 (PPG/MR/001/SOP revision 0, dated June 1, 2015). Indentify list of aspects of environmental

impact and K3 has been set, dated June 1, 2015 are the list of aspects of K3 environmental impact

from all the activities there. However Hazard Identification and Risk Control aspects K3 were set and

need to do reconsideration because of labor accidents when maintained spinning objects were not

according to the excisting control.

However, there were hazards that have not been identified in several activities, for example when

transporting sprayer using chemicals tanks trucks. There were of a chemical leaking or chemical

spilling that may impacted sprayers when when the truck tumbled. This evidence was raised as

major non conformity no. 07 in appendix 2 and has been adequately addressed by the auditee.

To calculate the risk of the Company's working environment, has been monitored and measured

work environment in accordance with Permenaker no. 13/2011 about value of the threshold factor of

physics, chemistry, and biology in each work area. Environmental measurement of work was

conducted on May 11, 2015. That were noise, vibration, lighting, ISBB, and Dust. The measurement

results of the work environment addressed in several areas such as Generator Set, Boiler, Loading

ramp showed the value of noise above 85 dBA.

Measurements were also performed on November 3, 2015. They were noise, vibration, lighting,

ISBB, and Dust. The measurement results of the work environment addressed in several areas such

as Generator, Boiler, Sterilizer, Engine room and Pressing shows the value of noise above 85 dBA.

The Company has been measured the health of audiometric on 3 November 2015 about 3 people for

estate officers and 24 for officers at the Mill on the Boiler, Sterilizer, Kernel, Engine room,

Clarification, Pressing station. Examination was conducted by Pontianak Hiperkes.

From the examination results, there were 7 people exposed hearingloss disorders due to disease at

work. The Company doctor has investigated and recommended the work rotation during 3 months

and also conducted socialization about the importance of using PPE as well as periodic of re-

examination.

Conclusion : Conform (Major Conformity has been adequately addressed)

4.7.3 All workers involved in the operation shall be adequately trained in safe working practices (see Criterion 4.8). Adequate and appropriate protective equipment shall be available to all workers at the place of work to cover all potentially hazardous operations, such as pesticide application, machine operations, and land preparation, harvesting and, if it is used, burning.

Major



By visiting factory, it appears that the noisy and dusty regions have been warned and given signs of

PPE use. Workers who work at the mill in general have been using PPE in a place that requires

using of PPE such as noisy and dusty boiler, seed stations and the engine room.

There were evidence of APD handover, as example handover of APD to do fertilizer on September

1, 2015, handover boots for harvesting workers in Division I on May 20, 2015 and September 8,

2015

Spinning objects have been given the cover and boilers operated at allowable pressure are 20

kg/cm2, the kitchen door boiler has been equipped with a lock and the pressure in the kitchen boiler

was safe with minus 10 mmH2O

Organization has set job description and standard on functions and positions. It has been set in a

matrix of competencies in order to get a gap for every function. However, the identification of training

that was conducted referring to competency gaps and proposals of each part about necessary

training. Then they created a training program. In the procedure of the provisions about employee

training no. PPG/MR/003/SOP has accommodated assessment of training effectiveness of

evaluation results by the direct supervisor for 6 month and there were forms application. To

accommodate the training needs of the employees, it has established training programs related to

the environment, K3, ISPO and RSPO year 2015.

Recording of the equipment operator is SIO for Boiler officer class II about four people, some lifting

and transport Craine equipment officer has been certified (Craine, forklift, dump trucks, loaders,

wheel loaders) and K3 electricity technicians was not available and this is raised as Major Non

conformity as detailed in appendix 2 no. 5. The respective corrective action taken by company as

written in appendix 2 no. 5 column 8 is considered adequate and closed.

In the Phase I, audit found that the Company did not have workers that has equipped with K3

certified training such as P3K, fire class A, B, C and D, as well as K3 electricity. Therefore, The

Company has conducted tackling of training of fire class D by PT. Upaya Riksa Patra on 29-30

October and for training P3K was conducted by Medika Plaza on 27 October and 4 November 2015

(attendance: 32 people 8 person from PSA)


4.7.4 The responsible person/persons shall be identified. There shall be records of



Major regular meetings between the responsible person/s and workers. Concerns of all parties about health, safety and welfare shall be discussed at these meetings, and any issues raised shall be recorded.

The Company has set up a committee which will be responsible for the K3 problems. At each SOP

and IK that have been issued and has been assigned the duties and responsibilities accordance with

process flow of activities. Meanwhile, in order to meet the provisions of national legislation, in this

case Permenaker No. 04/MEN/1987. The Company has formed a team P2K3 and all have been

ratified by the Social Service Manpower and Transmigration Kab. Ketapang. The endorsement of

data is as follows:

No. 83/2014 dated June 1, 2014 for the P2K3 Estate. The Chairman Bp. Eko Sugiyanto (estate

manager) and the secretariat P2K3: Togar M Tampubolon (already certified General AK3).

No. 84/2014 dated June 1, 2014 for the P2K3 Mill. With Hendri Wibowo as chief (Chief Assistant of

Engineering) and the secretariat Zulkarnaen (already certified General AK3).

But the P2K3's organizational structure needs to be revised related to state that Chief is not the

highest commander and secretary had moved. In the second stage of audit was found that the

chairman of the P2K3 been replaced by Mr. Ardyan DS which served as the plant manager, as the

Decree of the Regent of Ketapang no. 79/NAKER/ 2015 on September 11, 2015

P2K3 monthly meetings have been conducted by the Estate and Mill, which has been reported to the

P2K3 reporting agencies Social Service Manpower and Transmigration Ketapang. Reporting P2K3

recently was performed on the first quarter (January-March 2015) and the second quarter (April-June

2015).


4.7.5 Accident and emergency procedures shall exist and instructions shall be clearly understood by all workers. Accident procedures shall be available in the appropriate language of the workforce. Assigned operatives trained in First Aid should be present in both field and other operations, and first aid equipment shall be available at worksites. Records of all accidents shall be kept and periodically reviewed.

Minor

The Company has established some procedures and work instructions related to face work

accidents and emergencies situation. Procedures and work instructions applies to all units under PT.

Poliplant Group. Here are some procedures (SOPs) and work instructions (IK) that have been made:



- SOP Incident Investigation (PAS/PPG/EHS/37/SOP).

- SOP First Aid (PIMS/HSE-07).

- SOP Emergency Response Plan ((PAS/PPG/EHS/43/SOP)

- SOP Medical Services (PAS/PPG/EHS/23/SOP).

- Flow chart Medical Emergency Plan (PAS/PPG/EHS/43/F.07)

- Decision-making matrix when medical emergencies (PAS/PPG/EHS/43/F.04)

- Matrix hospital capability (PAS/PPG/EHS/43/F.05).

- Emergency Transport Approval Requirement Matrix (PAS/PPG/EHS/43/F.05)

Related P3K, all units have had P3K officers who have did internal training from Hiperkes Company

doctors. But, training P3K have a license from the new Employment agency that was made its

training program.

P3K box has provided in each division or unit that is class A accordance with Permenaker no.

15/2008. While for field operations foreman have provided a P3K bag for class A. In addition there

are other tools to support the emergency response preparedness such 1 Ambulance car and

complete tools and there is a paramedic who accompanied the patient.

There is footage of the accident at the mills, dated 10 April 2015 14:15 (Indonesia West Time) that

mechanical workshop employee named Adi Santosa where the ring finger and middle finger of his

right hand hit Van belt motor shell pneumatic transport fan. The Company has recorded the reporting

of Jamsostek 2 x 24 hours. The Company has made the investigation report that conducted by

Togar T (K3 estate expert and Hendri Wibowo (chief of P2K3 Mill), Bp. Manicam N as Senior

Manager. In the report the investigation of accidents are RCA and CA plan, has been discussed at

the mill workshop to employees.

For checking list of ambulance regularly is needed when anytime accident happened. The Company

has been cooperating with the nearest referral hospital (RS Fatima Ketapang, RS Imanudin

Pangkalanbun).

During the visit, it was found that one hydrant box was equipped properly and this is raised as minor

non conformity in appendix 5 no. 5. The respective corrective action proposed by the company to



equip hydrant box with nozzle and will do hydrant box inspection to whole Mill is not considered

adequate by the auditor which therefore the status of this finding remain minor.

Conclusion : Minor, NCR No.5

4.7.6 All workers shall be provided with medical care, and covered by accident insurance.

Minor

The Company had policy about social worker assurance inThe Company rules article 19. It stated

that The Company covered against every employee towards risk of accident of theirselves.

By implementation doing, at this time, according to Government policies, The Company gave social

assurance in form of BPJS health assurance and BPJS Manpower. Employees that got facility were

at any levels such PHL, SKU-H, PB, PI, and Staff.

The Company has paid BPJS health assurance for employees in estate and mill.


4.7.7 Occupational injuries shall be recorded using Lost Time Accident (LTA) metrics.

Minor

The Company has calculated the frequency rate (FR) and the severity rate (SR) from the incident

conducted every 3 months. Calculations refer to the provisions in Ministerial Regulation No.

03/MEN/1998, and had counted lost working days (Lost Time Accident). Calculation results were

recorded in Form SR/FR Monthly. There are Guidance of Procedure Charging FR Format - SR.


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

4.8.1 A formal training programme shall be in place that covers all aspects of the RSPO Principles and Criteria, and that includes regular assessments of training needs and documentation of the programme.

Major

The Company has had SOP about Competence, Awareness and Training. The Company has been

made training plan annually and last training plan is June 2015 - July 2016. there was training form

needs assessment that will be compiled by each of HRD section/unit before it is made into training

plan. All training plan period of June 2015 to December 2015 had been realized 100%. In the plan

already contained aspects of K3, environment, best practice, and management aspects. Training is

conducted both internally and externally.

Harvesting Safety: Training of harvesting is carried out every week. The training material is



appropriate to ensure a safe harvesting methods. Training associated with the incidence of

harvesting (first aider) schedule on August 2015 by doctors Hiperkes. There were training material

and evidence of presence about 37, consisting of harvesting workers and harvest foreman. Post test

associated with the material provided. The training has been adapted to the specific type of work

mainly related to the potential hazards and how to handle it.

Evidence of emergency response training has not found towards the harvesting worker when there is

an incident/accident. Results of interviews in the field, harvesting worker stated that they have not

received the training. Harvesting worker is equipped with whistle to call colleagues if the accident

occurred. The ascertainment in the field, harvesting workers sounded the whistle but no foreman or

other colleagues approached. This finding was raised as major non conformity no. 17.

The Company has been taken corrective action to this major nonconformity by providing appropriate

training material to the field conditions. Evidence in the form of training and simulation when workers

bitten by a rattlesnake and or fall of FFB. The training was conducted on March 29-31 ,2016 and

April 1- 2, 2016. The training was attended by assistants, foremen, clerks and harvest employees

about 152 people. This corrective action is considered adequate.

Spray Training

There are training materials for spraying. The last training was conducted on May 25, 2015 for a total

of 27 workers. There are post-training results that ensure a level of understanding training material.

Existing training materials are still using many with scientific terms and words. The training material

has been adapted to the level of understanding and are made specifically to ensure retention of

materialso that it can be applied in the work as sprayers.

The Company has been conducted meetings and training every month to the plasma. Last training

was conducted on August 18, 2015 about 43 person. So far the training material is related to

K3/safety.Training materials have not found in accordance with the requirements that set in RSPO

standard 4.8.1. for example related to handle of pesticides and hazards to workers and their families.

The Company has been conducted corrective action by conducting training to plasma farmer that

represent all KUD. The training is not only related to K3/Safety but also associated with handling

hazardous chemicals such as spraying and fertilizing.


4.8.2 Records of training for each employee shall be maintained.

Minor



At the mill and estate level, records of training are kept based on the training programme

attendance. A competence test is conducted to evaluate the participant achievement. HR has

responsibility for maintaining training records using software program.


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 mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate

5.1.1 An environmental impact assessment (EIA) shall be documented.

Major

There was a validation document about environmental feasibility of PT. Poliplant Sejahtera and got

approval and validation from Assessment Commitee of EIA of West Kalimantan province with no.

660.1/03/BAPEDALDA - A dated June 11, 2005.

EIA document have mill capacity about 60 tons FFB/hour with kernel area is 4,004.5 Ha and plasma

estate is 7,746 Ha.

Area of kernel estate has included area of land that plant with palm oil, river, HCV/NKT, roads,

housing emplacement and mills.

Beside that, there is recommendation document about assessment results of utilization of waste

water from palm oil industry in palm estates plantations with no. 660.1/13/KLH - B from Regent of

Ketapang, dated January 23, 2013.

In December 2014 PT. Cargill Indonesia managed the estate operational and palm oil mill.

The organization has applied for an environmental permit changes, related to changes in business

ownership in accordance with Regulation RI no. 27/2012 article 50 clause 2 letter a.

EIA documents consist of Environmental Impact Assessment (EIA), an executive summary,

Environmental Management Plan (RKL) and Environmental Monitoring Plan (RPL)

There are matrices of environmental management and monitoring In RKL and RPL that should be

done by the Company and report the implemantation result of RKL RPL every 6 months to BLH

Ketapang district and KLH of West Kalimantan Province.

Conclusion: Observation, NCR No.8

5.1.2 Where the identification of impacts requires changes in current practices, in order to mitigate negative effects, a timetable for change shall be developed and implemented within a comprehensive management plan. The management plan

Minor



shall identify the responsible person/persons.

The Company has identified aspects of environmental impact (ISO 14001) of the whole activities in

the estate and mill and also other facilities to support operations such as warehouse, workshop etc.

The identification of environmental impact needs to be conducted for the environmental

management and monitoring activities that impact negatively to the environment, but there is no

statement in documents RKL RPL such as flue gas emissions from boilers and Generator Set.

Report of RKL/RPL Implementation on first semester 2015 has reported to BLH District of Ketapang

and West Kalimantan Province.

Conclusion: Conform

5.1.3 This plan shall incorporate a monitoring protocol, adaptive to operational changes, which shall be implemented to monitor the effectiveness of the mitigation measures. The plan shall be reviewed as a minimum every two years to reflect the results of monitoring and where there are operational changes that may have positive and negative environmental impacts.

Minor

Environmental monitoring plan has been set in the Matrix Environmental Monitoring and

Performance Measurement, that included monitoring and measurement parameters, refference

rules, location of measurement, coordinate, frequency of monitoring, implementation of compliance

evidence, testing laboratory, PIC.

The Company reported that environmental management is conducted every six months to BLH

district and KLH West Kalimantan Province. Monitoring environmental management that is reported

including test of wastewater, groundwater, soil physical and chemical, ambient air,

generatoremissions, boiler emissions, odor, surface water/river, water biota, clean water, noise,

emission of moving vehicles.

For reporting of monitoring balance B3 waste have conducted on October untill December 2015 to

BLH District of Ketapang and BLH Province of West Kalimantan.

At the time of audit stage II is conducted, there was analyze result of laboratory testing, but The

Company has not reported to the BLH of Second Level of Ketapang District and First Level of West

Kalimantan province about result of RKL RPL implementation of second semester in 2015. This

finding has been raised as minor nonconformity no.11 in annex 2 of this report.

As corrective action, the Company has been completed report and submited implementation report

of RKL RPL of second semester in 2015 to second level of BLH and First level of province. This

corrective acton has been considered adequate.

Conclusion: Conform.



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 operations managed to best ensure that they are maintained and/or enhanched

5.2.1 Information shall be collated in a High Conservation Value (HCV) assessment that includes both the planted area itself and relevant wider landscape-level considerations (such as wildlife corridors). Major

Based on identification result of HCV in HGU area of PT. PSA was reported there were types of

HCV :

Type of HCV

Area (ha) HCV Atribute Location Information

1.1

1.2

1.3

145

Manis javanica

Place for species that in danger, limited/protected (15 type of birds), 2 type of plants and 34 type of mammals)

Local Protected Region

Some of HCV area is in outside work area of PT.PSA

3 145 Rare Ecosystem or extinct.

4.1 780 Important region as water capture.

S. Siriham, S. Batar, S. Garu dan S. Gahang

Estate of PT PSA and Plasma of PIR Trans

4.2 36 Important region as erossion controller

Block G/H/I 47, G49 and G50

5 881 Natural resources function is important for society needs basis

S. Siriham, S. Silat, S. Tutung, S. Priuk, S. Telakup, S. Batar, S. Luwak

Harapan Baru Village and Mekar Jaya Village (estate of PT PSA and Plasma)

6 - The area is important for culture identity

Estate of PT PSA and Plasma PIR Trans

HCV assessment was conducted by Daemeter Consulting address of Jl. Tangkuban Perahu 1,

Bogor, West Java, Lead Assessor : Jules Crawshaw (ALS14006JC) expert of landscape ecology,

forestry, enviromental services and Felicia Lasmana (ALS14007FL) expert of biodiversity,



landscape ecology, conservation.

The Company has showed HCV Map that indicate to spreading each HCV that has identified in

whole area of HGU at PT PSA estate.

In HCV file has been set NKT 4.1 about 780 Ha, such as Riparian river (Batar River, Siriham River,

Silat River, Garu River dan Gahang River) and swamp.There was wellspring in G36 that used by

local society and estate worker in rainy season and dry season. At survey in wellspring location, The

Company has conducted protection by bounding wellspring area about 200 m and remark palm oil

rod for ensuring there was no activity of chemical use (spraying dan manuring). In documentation

report of HCV assessment and Map of HCV, the wellspring was not set as HCV area.

The Company has been taken corrective action to this major nonconformity by sent a revised map

which have included the mark / sign (area HCV) in the spring G36. HCV Map sent by the company is

clear, there is the identification of HCV types in the Map and Legend. This corrective action has been

considered as adequate


5.2.2 Where rare, threatened or endangered (RTE) species, or HCVs, are present or are affected by plantation or mill operations, appropriate measures that are expected to maintain and/or enhance them shall be implemented through a management plan.

Major

The Company has SOP Identification, Management and Monitoring KBKT No.

PAS/PPG/42/S0P prepared and signed by the Sustainability Manager (Yogi Wicaksono) and

checked/approved by the Group EHS Manager (Richard Tan)

TheCompany has followed up the recommendations Assessor Program

Management/Monitoring that contained HCV criteria, source of the threat, type of threat,

threat categories, NKT location, effort management/monitoring, PIC and schedule of

management/monitoring.

Based on the study results from HCV Assessor team, it is known that around the estate area

of PSA found Wild Fauna and Flora (TSL) as follows:

TSL Category

Conservation Status

IUCN P 77/1999

CITES Endemik Explanation



Plantation Vul. (1 jenis - - - Found in Plasma Area PIR-TransPT. PSA

Bird - 10 types 5 types 2 types Directly Found

Mammals Vul. (15 types)

NT (2 types)

EN (4 types)

LC (11 types)

CR (1 types)

DD (1 types)

App. 1(7 types)

App. 2 (12 types)

App. 3(1 types)

7 types Directly found, biota places, and information from locals

HCV document has been established HCV 4.1 about 780 Ha, riparian river (S. Batar, S.

Siriham, S. Silat, Garu S. and S. Gahang), swamp. There are springs in G36 that used by

residents of surrounding communities and estate workers both during the rainy season and

the dry season. At the time of survey in location of the spring, The Company has made

efforts to bound the springs with a radius of 200 m and mark the palm trunks to make sure no

chemical usage activities (spraying and manuring) .On the HCV documentation assessment

reports and HCV maps, springs will not be defined as HCV areas.


5.2.3 There shall be a programme to regularly educate the workforce about the status of these RTE species, and appropriate disciplinary measures shall be instigated in accordance with The Company rules and national law if any individual working for the Company is found to capture, harm, collect or kill these species.

Minor

There were recording/evidence of socialization to all stakeholders about 15 units of sign board with

the picture of the species identified by the assessment team HCV as well as information about the

legal basis for the protection of wildlife, ban hunting/killing/protecting and punishment for those who

break these rules.

There were materials/training materials and public consultation about HCV. Public Consultation was

conducted on 10 Juni 2015 with attendants from government officials in district level , village level,

community organisation (Dewan Adat Dayak), police, farmers, village elders, school teacher, credit



unions (KUD/Koperasi Unit Desa), and company staffs.

The Company appointed Wiji JTDF Napitupulu as a special officer to supervise the activities of HCV

with a position as Program Assurance Officer Conservation (PAOC) based on Decree No.

024/HRD/SKKT/VIII/2015 dated August 14, 2015 signed by the President Director (Anthony Yeow).

There were evidences about HCV officer training which was held on May 20 - June 9, 2015 at the

KBK PT HSL with On Job Training PAO materials, informant PAC Conservation PT HSL

(Acressendo Park).


5.2.4 Where a management plan has been created there shall be ongoing

monitoring:

The status of HCV and RTE species that are affected by plantation or mill operations shall be documented and reported;

Outcomes of monitoring shall be fed back into the management plan.

Minor

The Company has been showed activity plan and evidence (record) of activity result that relevence

with plant protection effort and wild animal and also HCV area. Such as:

HCV/HBKT Inspection and buffer zone

HCV/KBKT Patrol and buffer zone

Station Inspection of River monitoring, reservoir, and wellspring

Erosion Rate Monitoring

Society Perception Monitoring


5.2.5 Where HCV set-asides with existing rights of local communities have been identified, there shall be evidence of a negotiated agreement that optimally safeguards both the HCVs and these rights. Minor

Activity of identification and HCV document arrangement was conducted through FGD process and

public consultation, but The Company has not showed written evidence about aggreement result

between The Company with local people for protecting HCV and did not use HCV area for cultivation

activity or other matters.

Conclusion : Minor NCR No.21

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

5.3.1 All waste products and sources of pollution shall be identified and documented.



Major

The Company has made the identification of sources of waste and pollution that are contained in

SOP Waste Management with the number: PAS/PPG/EHS/32/ SOP. In point 4.2.The source of

waste is from estate operation and mill site. Production of waste consists of :

1. Non B3 waste liquid from palm oil mill, palm oil mill effluent (POME) which is processed into IPAL

reservoir, domestic waste water and dirty waste from toilet that threw directly to specific pipe into

septic tank.

2. Organic Waste from specific waste for empty fruit bunch/EFB, decanter cake, fiber, kernel shells,

boiler ash also other organic waste such as wood, paper/cardboard, leaves.

3. Inorganic waste: fertilizer plastic bags, beverage/food plastic packaging, drink cans, zinc, glass,

remaining metal from cutting gas output, used tires, scrap/large scrap metal.

4. Waste Gas Emission: boiler emission gas, emission gas of generator, emission gas of heavy

equipment vehicles, and methane emission from IPAL.


5.3.2 All chemicals and their containers shall be disposed of responsibly.

Major

B3 waste liquid is used oil lubrication, used solar, waste water from analysis laboratory. B3 Solid is

used of chemicals packaging such as pesticides, herbicides, fungicides, insecticides, used batteries

of vehicles, used filter oil and diesel fuel, cloth rags, gloves that contaminated by

oil/diesel/grease,used packaging contaminated (used sacks, used oil ,used cans), used battery

calculator/flashlight/clocks, fluorescent light bulbs, cans of paint and thinner, toner / photocopy

machine cartridge, toner printer machine, printer, medical waste (syringes, cotton or gloves mixed

with blood).

Conclusion: Conform

5.3.3 A waste management and disposal plan to avoid or reduce pollution shall be documented and implemented.

Minor

There is no pesticide packaging waste reused but directly returned to the warehouse by stock clerk

then handed to TPS B3 waste. There were handover notes from B3 waste from each section and

then it was submitted to TPS B3 waste.

The Company has had temporary Storage LB3 licence to PT. Poliplant Sejahtera No. 394/KLH-

B/2013 includes PKS and estate. Licence has been approved by Regent of Ketapang with dated

August 19, 2013 which includes the origin of waste from used oil, filters, used batteries, light bulbs,



expired pharmaceutical products, syringes, chemicals, used chemicals packaging and toner. Used

duster contained oil has been identified in that license including combustible solid waste.

In the case of B3 waste management, The Company working with PT. RAN that gained

recommendation from the Ministry of the Environment to transport LB3,

B4910/Dep.IV/LH/PDALs/05/2014. There is an agreement letter by PT. RAN with contract No.

021/PSA-RAN/SPK/X/2014. The Last transportation was conducted on May 2015 by AD 1325 LC

trucks. The transport vehicle has got permission from Department of Land Transportation for

transporting hazardous materials, No. SK.2401/AJ309/DJPD/2014/ 330100684BB-0003 with a

validity period untill 27 April 2016. B3 waste is transported include medical waste, used filter, used

package in contamination of B3, used duster, used oil, used batteries and used TL lamps. The

manifest has been provided for each type of the B3 waste. Based on data from the manifest that

indicated and verified by the relevant legal documents, B3 waste organizer of PT. PSA has obtained

permission from the Ministry of Environment about line application and B3 waste that can be

managed. In addition the Company has a partnership with PPLI as B3 waste processing and

destruction with SPK no. 013/PPLI - LD/I - 2016, dated January 1, 2016.

Solid wastes such as shells and fiber is used as a substitute of fossil fuels for turbines and some of

the shells resale to outsiders. While the empty bunch is used to replace fertilizer that made from

chemicals. Liquid waste is also used as fertilizer in the Land Application management methods.

In general, domestic waste has been managed adequately and evidenced by the existence of

segregation bins for organic and inorganic garbage in some places. For organic and inorganic

domestic waste is transported by truck separetedly, but truck is not weighed and then the garbage is

planted in the landfill, respectively. It was not appropriate way for management of domestic waste if

the Company using that way (the truck is not weighed.)

The Company has been managed accommodate plastic waste (inorganic) and working with third

parties. Besides that plastic package is replaced with a drink cans.

The product of domestic solid waste has not recorded and there is no documentation of program

efforts and long-term targets for reducing domestic solid waste, reduction of emissions and reduction

of water use. Matrix program attempts, schedule and person in charge for reducing domestic solid

waste, reduction of emissions, water use reduction also have no corrective action.

The monitoring of effluent quality is conducted by testing the wastewater once in 1 month in an

abnaerob reservoir No. 6 before being discharged to land LA. The test results of the July-Desember

2015 conducted by PT. Unilab Perdana accordance with LA permit and Kep Men LH 28/2003, BOD

parameters and pH is still below the quality standard. Internal measurements were also conducted to



discharge waste and pH.

The monitoring of air emissions carried out once in 6 months and testing of the second semester of

2015 is conduct on October by PT. Unilab Perdana. The test results for each emission source can

be described as follows:

• ambient air. Test site in front of PKS, div 1 of employee mess, div 2 of the employee mess , RO

Ketapang. The test results in accordance with PP RI 41/1999

• Testing of boiler emissions 1 and 2 also KJBS boiler. The test results in accordance with Per-

07/MENLH/2007.

• Testing of div 2 SHME generator emissions, div 3 SHME generators, chimney SHMM generators 1,

2, and 4, SHME generator div 4 & 5, KJBS generators No. 2 and 3. Test results according to Kep

Men LH 13 2009

The Company also tested domestic wastewater periodically. From testing result of October 2015,

domestic waste water that will be throw still meet quality standards of Kep Men LH 122 2003.

Destruction of waste through incineration is not applied in accordance with the policy banning waste

disposal by burning and it is issued by the President.

Conclusion: Minor NCR No.12

5.4 Efficiency of fossil fuel use and the use of renewable energy is optimized

5.4.1 A plan for improving efficiency of the use of fossil fuels and to optimise renewable energy shall be in place and monitored.

Minor

The Company has determained energy efficiency program as stipulated in OTP in 2015. The

program was planned in order to maximize the energy efficiency, such as monitoring fuel usage for

tools and vehicles, calculate fuel consumption and not proper vehicles. Monitoring of usage fossil

fuels at the plant are made daily. Based on data from January 2015 until now, the energy used for

operation is 578,550 kCal /ton FFB (heat) and the power is 20.38 kwh power - hr / ton FFB.


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

5.5.1 There shall be no land preparation by burning, other than in specific situations as identified in the ‘Guidelines for the Implementation of the ASEAN Policy on Zero Burning’ 2003, or comparable guidelines in other regions. Major

The Company has not been doing land clearing or re-planting since 1995. The Company has had



land clearing SOP No. PPG/GMO/ASD/11/SOP stating that no land clearing used burning.


5.5.2 Where fire has been used for preparing land for replanting, there shall be evidence of prior approval of the controlled burning as specified in ‘Guidelines for the Implementation of the ASEAN Policy on Zero Burning’ 2003, or comparable guidelines in other regions.

Minor

The Company also has replanting plan that will be starting on January 2018 until January 2021 by

using system of open land without burning.


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

5.6.1 An assessment of all polluting activities shall be conducted, including gaseous emissions, particulate/soot emissions and effluent (see Criterion 4.4)

Major

The Company has set GHG Mitigation SOP and GHG Emissions Calculation No.

PAS/PPG/EHS/40/SOP. GHG inventory in the estate and mill have been recorded in the Data Form

of GHG Emissions Inventory and Mitigation No. PAS/PPG/EHS/40/F.01. Inventory source of GHG

emissions for the estate starting from the stage of land clearing, seeding, planting, TM and TBM,

compost applications, diesel engines, and LA. While the inventory of GHG emission sources for the

millconducted from mill operational phase to IPAL reservoir.


5.6.2 An assessment of all polluting activities shall be conducted, including gaseous emissions, particulate/soot emissions and effluent (see Criterion 4.4.)

Major

The Company has conducted monitoring of liquid waste, as described in the principle and criteria 4.4

The monitoring of air emissions carried out once in 6 months, in which the first semester of 2015

testing was conducted on May by PT. Unilab Perdana. The test results for each emission source can

be described as follows:

• Ambient air. Test site in front of PKS office, employee div 1inn, the employee 2 inn, RO Ketapang.

The test results in accordance with Regulation RI 41 1999.

• Odor. The test site in mess of employees 2, the test results in accordance with the LH Decree 50



1996.

• Noise. The test site in outside yard in front of PKS office, employee mess div 1, employee mess 2.

The test results in accordance with the LH Decree No. 48/1996

• Testing of boiler emissions 1 and 2 as well as the boiler KJBS. The test results in accordance with

Per-07/MENLH/2007.

• Testing of generator emissions SHME div 2, div 3 SHME generators, generator set chimney SHMM

1, 2, and 4, generator set of SHME div 4 & 5, generator set of KJBS No. 2 and 3. Test results

according to Kep Men LH 13/2009

Monitoring emission of generator chimneywas conducted by Unilab Laboratories use Permen LH No.

13/2009 but non conformity with SOP waste management: Permen LH no. 21/2008 Appendix IV A.

Corrective action was conducted by revising the SOP that refers to Permen LH No. 13/2009.

GHG mitigation programs in the region of Siriham Estate have been set in the OTP dated July 7,

2015. OTP has been covering objectives/goals, targets and indicators of achievement, programs,

personnel responsible and the target time of achievement. Some programs that was conducted such

as fuel consumption efficiency through monitoring and calculation of fuel consumption, application of

fertilizer and pesticides with the appropriate dose, and reduce the use of chemicals for fertilization

and spraying in the area of buffer zone.

GHG mitigation programs in PKS Siriham area set in OTP dated June 1, 2015.

Programs that set were reduction in fuel consumption by making energy efficiency, monitoring fuel

consumption, replacement of AC CFC to non-CFC gradually, monitoring the use of water, coverage

the quality standard of waste water for LA activities, power efficiency, and monitoring of GHG

emissions.

GHG emission reports using RSPO palm GHG calculator has been implemented, this is part of

ACOP reporting requirements. Under Technical Balance Score Card – monthly monitoring, volume

of pesticide, N fertilizer application, diesel used are being tracked and reported regularly. Mill utilize

boiler and turbine for generating renewable energy to power and supply electricity to all mill

operation and housing/office complex.




5.6.3 A monitoring system shall be in place, with regular reporting on progress for these significant pollutants and emissions from estate and mill operations, using appropriate tools.

Minor

Organization has been calculated GreenHouse Gas (GHG) using RSPO Calculator, based on the

calculation of GHG RSPO palm by 2015, greenhouse gas emissions about 23,754,082.46 ton Coe.

However, there still have errors when input data such as reception FFB data about 68,142,540 mt

while actual reception FFB data about 68,142,54 mt and this is raised minor nonconformity as written

in appendix 2 no. 08.

Conclusion: Minor NCR No.7

6 RESPONSIBLE CONSIDERATION OF EMPLOYEES AND OF INDIVIDUALS AND COMMUNITIES AFFECTED BY GROWERS AND MILLS

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

6.1.1 A social impact assessment (SIA) including records of meetings shall be documented.

Major

The Company has been showed the result of Sosial Impact Assessment (SIA) and recommendation

that has been issued by President Director of Cargill Poliplant Group on November 6, 2015.


6.1.2 There shall be evidence that the assessment has been done with theparticipation of affected parties.

Major

The Company has been showed evidence about social study activity that conduct by Daemeter

Consulting on April-Mei 2015 and on the progress of the activity involving society participation

arround the estate through 6 times of FGD’s activity.


6.1.3 Plans for avoidance or mitigation of negative impacts and promotion of thepositive ones, and monitoring of impacts identified, shall be developed inconsultation with the affected parties, documented and timetabled, includingresponsibilities for implementation.

Major

The Company has been showed long period program and annual program regarding to effort for

reducting social negative impact i.e. long periode program (6 years forwards) and CSR fiscal annual



program 2015/2016 as from June 2015 until May 2016.


6.1.4 The plans shall be reviewed as a minimum once every two years and updated asnecessary, in those cases where the review has concluded that changes shouldbe made to current practices. There shall be evidence that the review includesthe participation of affected parties.

Minor

The Company has been showed society perception on monitor work instruction as tool for reviewing

policy and practice that has been conducted by The Company to become material for program

revision/ plan in the future year.


6.1.5 Particular attention shall be paid to the impacts of smallholder schemes (wherethe plantation includes such a scheme).

Minor

The Company has had smallholdings and cooperative with the nearby village community.

Based on the results of meetings with stakeholders in the village of Sari Bekayas, according to

Tatang (cooperative management of Karya Jaya Cooperation from Mukti Rural Valley). There are 67

families who have not been members of the cooperation and have not had credit agreement and has

not been registered as a candidate for Smallholder.

According to the Head of Air Upas Subdistrict (Drs. Sugiarto) reached on the phone, stated that

there are 700 Ha smallholder candidate in Dusun Sengkuang Harapan Baru Village is waiting for

constructing as realization of the Company's commitment.

Plasma plant will replant at year of 2018 until 2021. Plasma through the cooperation have started

saving for replanting since June 2013 but the numbers are still far from the target. Plasma saving

data per December 2015 was Rp. 303,550,000 while the target is Rp. 9.1093 billion, -

The Company should develop the concept related to the financing plan for the replanting of plasma

which will begin in 2018.

The Company did not receive fruit from outside since January 2016 due to a contract with an outside

party is used up on December 2015 and the capacity of the fruit of kernel and the plasma has

sufficed so that contracts are not renewed.


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



parties

6.2.1 Consultation and communication procedures shall be documented.

Major

Communication Procedure and stakeholders consultation was documented on PK-3.00-03

procedure.


6.2.2 A management official responsible for these issues shall be nominated.

Minor

PT PSA Management has been determined PIC for CSR or public consultation on behalf of Pamela

Runtu equipped with job description and PIC that was assigned to convey the response are

excecutive boards, district managers and estate managers.


6.2.3 A list of stakeholders, records of all communication, including confirmation of receipt and that efforts are made to ensure understanding by affected parties, and records of actions taken in response to input from stakeholders, shall be maintained.

Minor

Community list or other interested party contained in stakeholders list as explained on clausal 1.1

such as Air Upas Subdistric head, Head of Village, Chief of BPD, chief of custom, religious figure

and young men figure from Harapan Baru Village, Air Upas, Mekar Jaya, Sukaria, Sari Bekayas,

Banda Sari, Air Durian Jaya, Membuluh Baru, Gahang, Manis Mata Distict , Desa Mekar Jaya, Bukit

Gajah and Lembah Mukti

The Company has been documented request and information response of incoming and outgoing

letters but It was not enough evidence showed that the documentation was conducted well and

detail.

There was record (file) information request letter (incoming letter) and response record of The

Company towards information request from stakeholders, but it still manually managed (has not

conducted as computer basis) so it was difficult to trace the document/letter.


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

6.3.1 The system, open to all affected parties, shall resolve disputes in an effective,timely and appropriate manner, ensuring anonymity of complainants andwhistle-blowers, where requested.

Major



The Company had procedures for handling complaints Internal (ER/PPG/HR/05/SOP). It provides

stipulate of employees to complain and handling complaints from complainer to level of

management. It did not regulate in detail about complaints mechanism that is confidential. In the

ascertainment in the field, the workers did not understand the mechanisms to make complaint and

did not know about mechanism of complaint and unware about box facilities and confidential

complaints mechanism. This finding was raised as major non conformance no. 22.

The Company has conducted corrective action about socialization of internal complaint handling and

complaint mechanism and also technical of internal complaint handling in accordance with the

procedure No. ER/PPG/HR/05/SOP. The Company has socialized it on February 9, 2016. This

considered as adequate to close out the NC finding.

In the SOP and its implementation did not provide a complaint stipulate to the RSPO when problem

resolution is not satisfy to one of the party.

The Company also has a procedure for external (Receiving Information and Complain and Conflict

Settlement: COM/PPG/CA/01/SOP). It has contained a provision by prioritizing consensus, but it

contained when there is anarchy, they asked for help to the police/military.The military should not be

related to the public.

There has been no mechanism to convey to RSPO (RSPO Complaint System) if solving problems

does not satisfy either party and also has not include a mechanism to complaints confidentially.

The Company had taken corrective action to improve SOP No.COM/PPG/CA/01/SOP (Receiving

Information Complain and Conflict Settlement). It was eliminating the role of the Police/Army if there

is anarchy in the society, the Company will take legal action.


6.3.2 Documentation of both the process by which a dispute was resolved and the outcome shall be available.

Major

The case of Land lawsuit that has not finished such Anang Dari case. This case has been discussed

in meeting with Department of Agriculture of Ketapang district on September 21, 2011. Based on the

information from the meeting’s note, the land was transfered from Maicam, Mencalang, Galis,

Galing.




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

6.4.1 A procedure for identifying legal, customary or user rights, and a procedure for identifying people entitled to compensation, shall be in place.

Major

The Land compensation is set in Land procedure (LCP/PPG/PR/01/SOP). For indigenous land has

been covered in this procedure at point 6 about "other thing" which states that Land Indigenous

Rights set in local rules and or through participatory mapping of indigenous territories by customary

law communities that recognized by customary law communities that refers to Pemendagri no.

52/2014 about guidelines recognition and protection of indigenous people and Minister of Agriculture

regulations No. 5/1999 about guidelines for problem solving of community land rights

Based on information from SIA results, there were no customary law communities referring to

Pemendagri No. 52/2014


6.4.2 A procedure for calculating and distributing fair compensation (monetary orotherwise) shall be established and implemented, monitored and evaluated in aparticipatory way, and corrective actions taken as a result of this evaluation. Thisprocedure shall take into account: gender differences in the power to claimrights, ownership and access to land; differences of transmigrants and longestablishedcommunities; and differences in ethnic groups’ proof of legal versuscommunal ownership of land.

Minor

The calculation of compensation in the land acquisition is set in Land procedure

(LCP/PPG/PR/01/SOP).


6.4.3 The process and outcome of any negotiated agreements and compensation claims shall be documented, with evidence of the participation of affected parties, and made publicly available. Major

PT PSA Palm Oil Estates was built with PIR Trans that refer to President Information No.1/1996. PIR

Trans participant consist of migrant people and local people. By that rule, Acquisition of Estate Land

did not apply GRTT process (claim of land and plant). Native people transfer the land (through

Ketapang Government district) to build estates will become priority to be PIR Trans participant.

Conclusion : Observation, NCR NO.27

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

6.5.1 Documentation of pay and conditions shall be available.

Major

On survey to the place of harvesting in block of K-48 division I, Auditor interviewed a harvesting

worker. This harvesting worker status is permanent worker with the daily wage about Rp. 66,000.00.

If the harvest reaches the base so, the harvesting worker will receive an additional wage of Rp.

15,000.00 and if there was a surplus of harvest, the harvesting worker receive about Rp. 1500.00

per bunch. The average weight of bunch at harvest location is 14 kg.

At survey to the location of fertilization in G46, section 1, interview was conducted with three

workers. Their status are as casual workers. The workers said that they start to work at 05:00 until

13:00 with daily wage about Rp. 66,000.00 and target of fertilization about 450 kg/day. They get paid

about Rp. 146/kg, if there is additional fertilize. Based on information from them, they have worked

more than one year and never worked less than 21 days each month.

On a visit to the location of the daycare (TPA), there are 2 caregivers. Caregivers are permanent

workers. Based on the information, they get paid about Rp. 66,000.00 per day and get overtime pay

about Rp. 5,000.00 per day.


6.5.2 Labour laws, union agreements or direct contracts of employment detailing payments and conditions of employment (e.g. working hours, deductions, overtime, sickness, holiday entitlement, maternity leave, reasons for dismissal, period of notice, etc.) shall be available in the languages understood by the workers or explained carefully to them by a management official.

Major

Officers of childcare in Division I, Based on their statements, they began working on 04:30 until

13:00 or 14:00 depending on the return of the parents of each child.

The Company has had Decree about wage of employees increase in 2015 No. 002A/PD-PPG/I/2015

includes provisions of wage structure and class status stipulation. SKU lowest daily wage is Rp.

1,980,000 and details of the daily wage is Rp. 66.000. The Company determined the daily wage by

dividing UMK Rp. 1,980,000/30 days in a month.

This is not appropriate with Government stipulation of 25 working days/daily so that minimum daily

wage should Rp. 79,200 so that the difference in the daily wage about Rp. 13,200 per mandays



The Company had conducted corrective action by applying the rules in accordance with 25 working

days per 1 January 2016 (SK Issuance of Management No.003/PPG-HRGA/I/2016). It has revised

the previous administration of daily wage of Rp. 66,000 into Rp.84,500 for the lowest class (working

age <1 year).

The Company has made a contract in person with workers that has BHL status. Sampling on behalf

of Iran with contract No. 300/SK/PSA-SHMM/X/2013, and also Fransiskus Ligo with contract No.

263/SK/PSA-SHMM/IV/2013 which contains UMK stipulation, But the contract has expired and UMK

per 2016 has not been updated against these workers. In the field, the sprayers in the estate and

sorting in the PKS did not know the Government provisions relating to the application of UMK in

2016.

The Company had conducted corrective action by issuing a decree No.031/SK/PSA-SHMM/I/2016

on behalf of Fransiskus Ligo and Decree No.032/SK/PSA-SHMM/I/2016 on behalf of Iran.

The Company has established overtime pay to BHL workers about Rp. 9,900 per hour based on the

calculation of the provision for overtime pay is (Rp. 66,000/40 hours x 6 days) = Rp. 9,900, -. This is

not appropriate with the provisions of the government for overtime pay is (1/173 x Rp. 1,980,000) =

Rp. 11.445 per hour so in this case there is difference / shortfall about Rp. 1.545 per hour.

The Company had conducted corrective action by setting bonus about Rp.13,425 which are in

accordance with government regulations.

The Company makes decision about bonus payment: example for harvesting workers about

Rp.1,800 – 2,000/FFB. while its base is 75-90 FFB/HK. In this case the Company can not sure

whether the overtime bonus is appropriate with overtime bonus by government's resolve.

The Company had conducted corrective action to make the calculations to ensure the payment of

bonus not smaller than overtime payment. Previous base about 202 FFB/HK for planting year 1993

and now become 149 FFB/HK.

There are many BHL workers about 183 people that are still be casual workers and has been

worked for many years. In Government regulations, when working for 21 days respectively for 3

months, They shall became permanent workers.

The Company has conducted corrective actions by appointment of 147 workers that have BHL

status into BHT on January 26, 2016.



The Company has paid BPJS health assurance for employees in estate and mill but not every

employee has included.

The Company has conducted corrective action to register all workers who originally registered about

2446 workers become 2719 workers per month on February 2016. This corrective action is

considered adequate.


6.5.3 Growers and millers shall provide adequate housing, water supplies, medical, educational and welfare amenities to national standards or above, where no such public facilities are available or accessible. Minor

Organization has been provided child care for families whose parents work and have very young

children. The TPA is equipped with 2 bathrooms and there was water for toilets. When survey in the

field to the TPA Afdelling I, it appears that the water supplied to MCK has translucent color and

toilets were in a clean state.

Landfill (TPA) was provided a thin mattress, pillow and hanging cradle. Food and drinks are provided

by the parents of each child. Play equipment has not been provided during the audit survey.

Residential house facilities that auditor visited were good houses in Division I-type house G6 and

G10. Each house is equipped with 2 rooms and one toilet. For the type of housing G6, water for

toilets is taken from the reservoir, but the water reservoir can not be used for cooking and drinking.

For cooking and drinking, the G6 residents have to buy water. The company has provided drinking

Water Treatment Using Reverse Osmosis (RO) for employees, this RO located in company housing

complexto supply free drinking water to all employee and their family, effective April 2016.

Electricity is provided free by the organization. House in section I, the electricity is on throughout the

day.

In the interview in the PKS and estate, it was found that worker get rice allowance in accordance

with the status of workers which are single or married. At the time of the interview on the field, the

workers complained about the quality of rice and the rice smelled foul.

It were found complaints from workers who are Catholics, in which they did not get facilities such as

chapels or bus transportation to the place of worship. This finding was raised as minor nonconformity

no. 24.



The Company had conducted the respective corrective action by providing transportation to the

church and made a formal notice to the employee (SK No.001 / EM-SHME / 01/2016) dated January

24, 2016. This corrective action is considered adequate.


6.5.4 Growers and millers shall make demonstrable efforts to monitor and improve workers’ access to adequate, sufficient and affordable food.

Minor

As an efforts to improve workers’ access to adequate, sufficient and affordable food, The Company

has established cooperation by name of Cooperation Employee “Poliplant Lestari” This cooperative

provide daily needs for worker in the mill and estate


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

6.6.1 A published statement in local languages recognising freedom of association shall be available.

Major

The Company provides the opportunity for all workers to unionize. It is stated in the Policy of

Association signed by the President Director. One of the contents of this policy is that Poliplant

Management Group is committed to provide equal rights to all employees to be a member/union

officer.


6.6.2 Minutes of meetings with main trade unions or workers representatives shall be documented.

Minor

At this time, United Workers is formed in PT. Poliplant Sejahtera. There is documentary evidence in

the form of SK Kadinsonakertrans of Ketapang Distict No. 64 A 2015 about Registration of SP

Mandiri Perkebunan Poliplant Bersatu PT Poliplant Sejahtera, dated May 25, 2015. Name of SP/SB:

SP Mandiri Perkebunan Poliplant Bersatu (SPMPPB). Address PT. Poliplant Sejahtera Harapan

Baru Village Air Upas subdistrict Ketapang district, No. registration: 83/OP-SPSB/SPM-

PT.PS/DFT/2015. The board consists of: Agus Suryadi (Chairman) Suyadi (WKL. Chairman), Darma

Setiawan (Sekr.1), Sufriyanto (Sekr.2) Suhandri (Treasurer 1), and Akhyar (Treasurer 2). They

already had AD/ART. While PKB still in draft form.

The Company also has established LKS Bipartit, PT. PSA and has been recorded in accordance



with Kadinsonakertran decree of Kab. Ketapang No. 135/2014 dated 07.11.2015. about Registration

of LKS Bipartit of PT. Poliplant Sejahtera of Ketapang district, in which the second dictum,

mentioned that LKS Bipartit of PT PSA was recorded with Reg. No: 071/LKS-BI/STKT-C/XI/2014.

On attachment 1 there was Membership Structure of LKS Bipartit which consists of 60 members,

each of them are 31 workers 'representatives and 29 enterpreneurs' representatives. This amount is

not accordance with the provisions of laws regulating with ratio of 1:1.

Since its builded, the recent meeting of the management denfan is just once. There is evidence form

Meeting’s note, dated July 24, 2015 between SPMPPB with management to discuss the provision of

facilities, forming secretariat, structure of sosialization plan, the establishment of management plans

in additional units in each work unit (divisions and offices), and plans to form PKB. Note is signed by

the Chairman, Secretary, SHME EM and SHMS EM (Plasma).

There are a list of workers and employees who are members of cooperatives about 132 people

(estate employees and mill employees). The Articles of Association of Cooperatives section 6 is set

for the amount of principal for each member about Rp. 200,000 and mandatory savings of Rp.

20,000/Members/Month.

The Company provide facility support that consist of: room for SP office such as G6 houses located

in D6/01, area of Division 1. The equipment consist of: carpet, desks, chairs, file cabinets.

There was no construction in training form or seminar occasion, however, permission has been

granted by The Company.


6.7 Children are not employed or exploited.

6.7.1 There shall be documentary evidence that minimum age requirements are met.

Major

The Company has a commitment to do implementation of rules regarding to the worker's age. This is

demonstrated by policies and procedures which stressed that recruitment activities do not break the

minimum age as stipulated in the rules.

There are age Limits of Recruitment Policy, signed by the President Director. The Commitment are:

1). Conduct recruitment process regard to the protection of underages children in accordance with

Law No. 13/2003 about Employment (2). Requires is at least 18 years and received as an



employee.

Recruitment Procedure (REK/PPG/HR/08/SOP, Published on June 2015). In point 3.4 stated that the

criteria of selection and hiring worker is minimum of 18 years.

The Company has the documentation related to employee data in Mill and Estate. Employee data is

recorded in Employee Master Data, data formats note include: Employee Identification Number

(NIK), KPJ Number, Name of Worker, Gender, Occupation, Dateof Job, Grade, Status, Place of

Birth, Date of Birth, Age, Religion, Provenance, other Description.

Based on existing data in SHME and in SHMM, there are no workers under 18 years old.

Data shows that total number of workers is 515 people and worker at 18-19 years old consisting of 2

people and a majority were 31-40 years old about 187 people (36.31%)


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

6.8.1 A publicly available equal opportunities policy including identification of relevant/affected groups in the local environment shall be documented.

Major

The Company has set a policy about discrimination in getting Equal Opportunities Policy. This policy

was signed by the President Director. Policy contains a commitment that The Company provides

rights to equal opportunities for: (1). Self Improvement and improve careers regardless of gender,

ethnicity/race, religion, and class. (2). To support employee in assessing the interest and talent so

the employee can do self-development. This policy has limitations because it does not include a

statement to grant equal opportunities to communities in the affected neighborhood/local.

The Company has the evidence related to the implementation of the policyabove, Such as:

1. Determination Recruitment Procedures (REK/PPG/HR/08/SOP), dated June 2015. In point 3.4

stated that the criteria of selection and hiring only: indonesian citizen, minimum age 18 years old,

health in mind and spirit, willing to obey the rules and regulations of The Company, not involved in

political party , not associated with other legal subjects. It was seen that the criteria do not mention

the ethnicity/race, religion, gender, or group.

2. The composition of the workforce of each unit, The Company received a labor of various ethnic,



religious, and men and women. In Unit Mill, women are less in numbers due to the characteristics of

work more suited to male. Employment data views by gender, religion, and ethnicity that show

diversity.Related to the selection, recruitment and promotion, the Company did it by reference to the

following policies:

- Recruitment Procedure (REK/PPG/HR/08/SOP, published on June 2015, described in indicator

6.8.2.

- Selection is based on the results of several test stages, such: the first interview, potential test

(capability and psychology, English), interviews with users and grouped into Very Good, Good,

Enough, and Less), and a final interview.

- Procedure Probation (ADM/PPG/HR/ 03/SOP, on June 2015), which states that all new employees

(without mentioning race / ethnicity, religion, gender, etc.), should follow probation period, during 3

month.

- Procedure Career System (CDV/PPG/HR/11/SOP), and Performance Appraisal (form

CDV/PPG/HRD/ 11/F.02), form Employees Promotion (CVD/PPG/HR/11/F.03), which indicates that

the promotion is only based on performance evaluation results and not to other factors.

The Company's data showed a composition based on ethnic, in which Batak ethnic (2 people/

0:39%), the majority was Dayak ethnic about 180 people (3.95). In this case it showed that the

Company already provides jobs to the priority (indigenous people)


6.8.2 Evidence shall be provided that employees and groups including local communities, women, and migrant workers have not been discriminated against.

Major

Company does not conduct discrimination againts local community, and women in career system, as

documented in Procedure Career System (CDV/PPG/HR/11/SOP), and Performance Appraisal

(form CDV/PPG/HRD/ 11/F.02), form Employees Promotion (CVD/PPG/HR/11/F.03), which

indicates that the promotion is only based on performance evaluation results and not to other factors.

The Company's data showed a composition based on ethnic, in which Batak ethnic (2 people/

0:39%), the majority was Dayak ethnic about 180 people (3.95). In this case it showed that the

Company already provides jobs to the priority (locals people)




6.8.3 It shall be demonstrated that recruitment selection, hiring and promotion are based on skills, capabilities, qualities, and medical fitness necessary for the jobs available. Minor

Procedure Career System (CDV/PPG/HR/11/SOP), and Performance Appraisal (form

CDV/PPG/HRD/ 11/F.02), form Employees Promotion (CVD/PPG/HR/11/F.03), which indicates that

the promotion is only based on performance evaluation results and not to other factors.


6.9 There is no harassment or abuse in the work place, and reproductive rights are protected

6.9.1 A policy to prevent sexual and all other forms of harassment and violence shall be implemented and communicated to all levels of the workforce.

Major

The Company has a policy related to the prevention of abuse and sexual violence in the form of

Policy about Sexual Violence and Crime, signed by the President Director. It contained aspects of

sexual harassment and violence.

The Company has conducted socialization to this policy. There is evidence of attendance lists dated

July 8, 2015 about Sexual Violence and Crime Policy. But from the list of attendees, there are about

174 people.

The Company has a policy regarding the protection of reproductive rights on Policy Reproductive

Rights of Women, signed by the President Director. The Company has conducted socialization about

this policy. There is evidence of attendance lists dated 08.07.2015 about Policy Reproductive Rights

of Women, but from the attendance list that is only attended by 78 people.

The Company has implemented this policy related to grant of leave of absence for women who are

menstruating or pregnant. In SHME there were evidences of maternity leave that is Leave Request

on behalf of Tarmi (office employee) dated August 7, 2015 until November 7, 2015. (2). Certificate of

Illness was given by paramedics to Mrs. Tarmi (30 th Div. II). It granted maternity leave for 90 days

(3 months) since 7/8/2015 until 15-7 / 11/2015. This letter was copied to the KTU. For in SHMM,

there is no evidence, because during the period of January until the audit is conducted, there were

no maternity leave or apply for menstruation leave permit.

The Company has had daycare about 2 spot. This is a proof of protection against the women and

the necessity to earn a living to support her husband or themself.



The Company in SHME Unit has supplied evident of complaint records, but there were no

title/identity. Data recorded includes: No, Employee Name (the person whom complaining), Date,

Reporting, Division, Employment, Complaints, Solutions, Follow Up, Status, and Description.

There are some complaints and it was recorded on the report form Complaints Handling and book

recap. Sampling is conducted in cases of complaints: (1). a/n. Katno (Division 1, harvest

employees), request volleyball field with fence. In the column of official report I : It was included the

management response "using existing volleyball field and will be fenced." (2). An. Darmawan

Setiawan, the contents of the complaint: the roof leaked because of heavy rain and water come to

room , and (3) a/n. Sri Utami / Masyanto, the contents of the complaint: the tub leaked, but has

made improvements. In that three cases, it has been declared final or finished, but it did not

supported by sufficient evidence and official report also the notification of completion to the

applicant, as stipulated in the procedure.

The Company already has a gender committee that the board of management chaired byDominica

Pauniawhen ascertaining in the field against the sprayer, they did not have an understanding of what

are the criteria/parameters of sexual harassment. This finding was raised as major non conformity

no. 23.

The Company already has a gender committeethat the board of management chaired. The

Companyhas had as well conducted corrective action to disseminate prevention of harassment in

the workplace on February 9, 2016 with participants about 54 people.This corrective action is

considered adequate.


6.9.2 A policy to protect the reproductive rights of all, especially of women, shallbe implemented and communicated to all levels of the workforce.

Major

The Company has a policy regarding the protection of reproductive rights on Policy Reproductive

Rights of Women that forbid pregnant woman employee to do work that related to chemical material

and pesticide as set in chemist weeds restraint procedure No.PPG/GMO/ASD/28/SOP.

The Company sure that no woman employee that be contact with chemical pesticide in pregnant

condition. The Company conducted pregnant check every month but in procedure it stated every 3

months. In audit stage II, has been conducted medical check up every month started from August

2015 untill December 2015. In pregnant check result on December 2015 is known there was 1



pregnant woman. Based on SK from Ulfa Aryani, a midwife, on 4 December 2015 state that start

from December 7, 2015, the pregnant woman will be transfered to another divison that no related

with chemicals.


6.9.3 A specific grievance mechanism which respects anonymity and protectscomplainants where requested shall be established, implemented, andcommunicated to all levels of the workforce.

Minor

The Company has had procedures that organize complaints and grievances of workers, It was

Internal Complaint Handling Procedure (ER/PPG/HR/05/SOP, on June 2015). The procedure is used

both for internal and external complaints. In paragraph 5 contained provisions on "Guaranteeing

Anonymity Reporting complaints ". To record a complaint, The Company has been supplied form of

Report Handling Complaints (ER/PPG/HR/05/SOP).


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

6.10.1 Current and past prices paid for Fresh Fruit Bunches (FFB) shall be publicly available.

Minor

The price of FFB is publicly available by posting in the Mill and all KUD. The price is determined

every month and base on local government regulation, Province of West Kalimantan. Any dispute of

price and payment system will be handled in a regular meeting between company and KUD and also

refers to SOP No. COM/PPG/CA/01/SOP : Receiving Information, Complain and Conflict Settlement


6.10.2 Evidence shall be available that growers/millers have explained FFB pricing,and pricing mechanisms for FFB and inputs/services shall be documented (wherethese are under the control of the mill or plantation).

Major

The company has recorded every incoming FFB from smallholder in Sortation form and makes the

recapitulation every month in Form of Summary FFB Production Plasma Divison. The recapitution

form is signed by each party (KUD and company).

During the public consultation, the representative of plasma asked regarding the “K- factor “ which

also as element in determining for FFB price. The company explained that the “K-factor” determined

by local government for each company in Ketapang Region base on the quality of FFB for esch

estate. The plasma has the objection that the “K-factor” for poliplant plasma is not suitable (penalty



3-4%) since the quality of their FFB is the highest in the West Kalimantan Region. The company

explained that the regulation is set up by local government and used by all companies in West

Kalimantan Region.

Sampling of FFB price, in November 2015 that the pricedetermined by Local government, Ketapang

Region was range from Rp. 942.45 (under 3 years old) – Rp 1.281.03 (highest, 10-20 years old).


6.10.3 Evidence shall be available that all parties understand the contractual agreements they enter into, and that contracts are fair, legal and transparent.

Minor

The Company cooperated with 5 cooperatives: 1. KUD Subur Makmur, 2. KUD 3. Bukit Selendang

Jaya, 4. Koptan Budhi Asih, 5. Kopbun Mitra Sejahtera.

The Company has a partnership with the Cooperative of Subur Makmur. There are SPK between

The Company with plasma No. 019/PSA-SPK/II/2005. SPK has been included cooperation such as

sales of FFB to The Company. The deal has not been found evidence of time payment.

The Company did not have SPK related to the cooperation with five other co-operatives. Generally,

all SPK did not include a payment agreement, the provisions of penalty/sorting. In SOP Sorting FFB

(LAB/BSA/SHMM/13SOP) found a discrepancy on the provision of penalties for example for a long

stalk in the SOP which stated that stalk <2 cm hit penalty while government provision stated that

stalk above 2.5 cm will hit penalty. This finding was raised as minor nonconformity no. 26.

The company has made the corrective action by revising all Contract agreements with all

Cooperatives. The corrective action maed such as :

- The sortation methods will be refer to Government Regulation No.

14/Permentan/OT.140/2013.

- The sortation process will be witnessed by all parties (company and KUD) and sortation form

will be signed by both parties

- The price of FFB will be referred to local Government regulation (West Kalimantan)

- The payment will be conducted every month, latest 19 days after closed book/upon the

completion of invoice by supplier.

- The methods in handling of complaints with deliberation and consensus

The company has submiited the evidences such as new contract with all KUD (KUD Karya Jaya,

KUD Budi Asih, KUD Mitra Sejahtera, KUD Titian Makmur, KUD Bukit Salendang Jaya). Evidence of

KUD Karya Jaya with contract number 006/PS-KOP/II/2016 signed by chairman of KUD and



President Director of Poliplant.

The company has made the corrective action by revising the procedure No.Lab/PSA/SHMM/SOP

SORTASI TBS. The SOP has set up the mthods of sortation, pilanty and price system.


6.10.4 Agreed payments shall be made in a timely manner.

Minor

All payments made to the smallholders have been set up in each MOU between company and each

KUD.

The mode of recording/documenting transactions between millers with smallholders from Form of

daily FFB, Sortation Form for penalty, Summary FFB production Plasma division and slip payment to

each KUD.

The payment will be delivered by Cheque every month, latest 19 days after closed book/upon the

completion of invoice by supplier.


6.11 Growers and millers contribute to local sustainable development where appropriate

6.11.1 Contributions to local development that are based on the results of consultation with local communities shall be demonstrated.

Minor

The Company has been delivered help for society around the mills such as natural support, repairing

infrastructure, national and traditional celebration support, but it were still responsive action.

The Company could not show short term plan and longterm plan regarding to CSR program based

on SIA

No evidence about mechanism of evaluation of CSR implementation.

The Company explained that the SIA reports indicated at the time of the audit is not final(still in

draft). The Company (CSR Team) has not made an overall social mapping that according to the

draft report SIA.

The Company already conducted social mapping, not only for the PSA, but for all Group Poliplant

and create special SOP for CSR. The company has already made a short-term and long-term

program planning for CSR based on a report of SIA.




6.11.2 Where there are scheme smallholders, there shall be evidence that efforts and/or

resources have been allocated to improve smallholder productivity. Minor

To increase plasma production, The Company has been conducted meetings and training every

month with the plasma. Last training was conducted on August 18, 2015 about 43 person. So far the

training material is related to K3/safety.Training materials have not found in accordance with the

requirements that set in RSPO standard 4.8.1. for example related to handle of pesticides and

hazards to workers and their families.


6.12 No form of forced or trafficked labour are used

6.12.1 There shall be evidence that no forms of forced or trafficked labour are used.

Major

There is no worker forced based on worker data result and field survey. Organization has been

documented policy for employing worker forced on Cargill etic code in principle guide No. 5 “ We

employing people prestigely and honorly” as for human right.


6.12.2 Where applicable, it shall be demonstrated that no contract substitution has occurred.

Minor

There is no worker contract that subtitute by other contract.


6.12.3 Where temporary or migrant workers are employed, a special labour policy and procedures shall be established and implemented.

Major

There is no migrant worker that was employed by the Company


6.13 Growers and millers respect human rights.

6.13.1 A policy to respect human rights shall be documented and communicatedto all levels of the workforce and operations (see Criteria 1.2 and 2.1).

Major

Respect human rights was attached in principles of Cargill in Principle No.5 “We employed people



prestigely and honorly” as for human rights

Principle has been published on March 26, 2015.


7 RESPONSIBLE DEVELOPMENT OF NEW PLANTINGS

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

7.1.1 An independent social and environmental impact assessment (SEIA), undertaken through a participatory methodology including the relevant affected stakeholders, shall be documented.

Major

Land acquisition in development of estate organization through PIR – TRANS was President

Instruction No.1/1986 about PIR related to Transmigration Program, Ministry of Domestic Affairs

No.1/1986 about Land supply and Puchasing right of Land in order to Palm estate development with

PIR that related to Transmigration program. Land acquisition for Palm Oil estate from Governor on

November 1989, Governor decree about Land subtitute and Location permit of 39,700 Ha, Decree of

Ministry of Agriculture No. KB.320/701/Menteri/XII/89 about Agreement of Palm Oil development

principle with PIR-TRANS, Decree of Ministry of Transmigration No. KEP.46/MEN/1993 about permit

implementation of transmigration PIR-TRANS to PT. Poliplant Sejahtera, Letter of Decree of Ministry

of Agriculture No. 541/KPTS/KB.510/7/1990 about implementation plan PIR-TRANS of Palm Oil in

Marau and Manis Mata, Ketapang District.

There is no new plantings, based on data in document “Area detail and KK of Plasma Estate”.

Rehabilitation of estate was conducted in 2007 in SP 7 withplant year 1995 about 302 Ha (before :

936 Ha) and SP 10 with plant year 1995 was rehabilitated about 130 ha (before : 810 ha). There is

reporting of insert of location in SP 7 and SP 10.


7.1.2 Appropriate management planning and operational procedures shall be developed and implemented to avoid or mitigate identified potential negative impacts.

Minor

There is no new plantings after November 2005


7.1.3 Where the development includes an outgrower scheme, the impacts of the scheme



Minor and the implications of the way it is managed shall be given particular attention.



7.2 Soil surveys and topographic information are used for site planning un the establishment of new planting and result are incorporated into plans and operations.

7.2.1 Soil suitability maps or soil surveys adequate to establish the long-term suitability of land for oil palm cultivation shall be available and taken into account in plans and operations.

Major



7.2.2 Topographic information adequate to guide the planning of drainage and irrigation systems, roads and other infrastructure shall be available and taken into account in plans and operations. Minor



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

7.3.1 There shall be evidence that no new plantings have replaced primary forest, or any area required to maintain or enhance one or more High Conservation Values (HCVs), since November 2005. New plantings shall be planned and managed to best ensure the HCVs identified are maintained and/or enhanced (see Criterion 5.2).

Major



7.3.2 A comprehensive HCV assessment, including stakeholder consultation, shall be conducted prior to any conversion or new planting. This shall include a land use change analysis to determine changes to the vegetation since November 2005. This analysis shall be used, with proxies, to indicate changes to HCV status.

Major



7.3.3 Dates of land preparation and commencement shall be recorded.

Minor





7.3.4 An action plan shall be developed that describes operational actions consequent to the findings of the HCV assessment, and that references the grower’s relevant operational procedures (see Criterion 5.2).

Major



7.3.5 Areas required by affected communities to meet their basic needs, taking into account potential positive and negative changes in livelihood resulting from proposed operations, shall be identified in consultation with the communities and incorporated into HCV assessments and management plans (see Criterion 5.2).

Minor



7.4 Extensive planting (to be determined by SEIA) in steep terrain, and/or on marginal and fragile soils, including peat, is avoid.

7.4.1 Maps identifying marginal and fragile soils, including excessive gradients and peat soils, shall be available and used to identify areas to be avoided.

Minor



7.4.2 Where limited planting on fragile and marginal soils, including peat, is proposed, plans shall be developed and implemented to protect them without incurring adverse impacts.

Major



7.5 No. New Planting are estabilished on local people’land where it can be demonstrated that there are egal, customary or user rights, without their free, prior and informed consent. This is dealt with through a documented system that enables these and other stakeholders to express their views through their own representative institutions.

7.5.1 Evidence shall be available that affected local peoples understand they have the right to say ‘no’ to operations planned on their lands before and during initial discussions, during the stage of information gathering and associated consultations, during negotiations, and up until an agreement with the grower/miller is signed and ratified by these local peoples.

Major



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



7.6.1 Documented identification and assessment of demonstrable legal, customary and user rights shall be available.

Major



7.6.2 A system for identifying people entitled to compensation shall be in place.

Major



7.6.3 A system for calculating and distributing fair compensation (monetary or

otherwise) shall be in place. Major



7.6.4 Communities that have lost access and rights to land for plantation expansion shall be given opportunities to benefit from plantation development.

Minor



7.6.5 The process and outcome of any compensation claims shall be documented and made publicly available

Minor



7.6.6 Evidence shall be available that the affected communities and rights holders have access to information and advice, that is independent of the project proponent, concerning the legal, economic, environmental and social implications of the proposed operations on their lands.

Minor



7.7 No use of fire the preparation of new plantings other than in specific situations, as identified in the ASEAN guidlines or other regional best practice.

7.7.1 There shall be no land preparation by burning, other than in specific situations, as identified in the ‘Guidelines for the Implementation of the ASEAN Policy on Zero Burning’ 2003, or comparable guidelines in other regions. Major





7.7.2 In exceptional cases where fire has to be used for preparing land for planting, there shall be evidence of prior approval of the controlled burning as specified in ‘Guidelines for the Implementation of the ASEAN Policy on Zero Burning’ 2003, or comparable guidelines in other regions.

Minor



7.8 New Plantation developments are designed to minimaze net greenhouse gas emissions.

7.8.1 The carbon stock of the proposed development area and major potential sources of emissions that may result directly from the development shall be identified and estimated.

Major



7.8.2 There shall be a plan to minimise net GHG emissions which takes into account avoidance of land areas with high carbon stocks and/or sequestration options.

Minor



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

8.1.1 The action plan for continual improvement shall be implemented, based on a consideration of the main social and environmental impacts and opportunities of the grower/mill, and shall include a range of Indicators covered by these

Principles and Criteria.

As a minimum, these shall include, but are not necessarily be limited to:

• Reduction in use of pesticides(Criterion 4.6);

• Environmental impacts (Criteria 4.3, 5.1 and 5.2);

• Waste reduction (Criterion 5.3);

• Pollution and greenhouse gas (GHG) emissions (Criteria 5.6 and 7.8);

Social impacts (Criterion 6.1);

• Optimising the yield of the supply base.

Major

To measure the level of application in integration management system of LK3MKP such as

environmental, K3, quality, ISPO and RSPO for once a year, appropriate with internal procedures

audit no. PPG/MR/009/SOP revisions 0. Organization has conducted internal audit in an integrated

manner that is ISO 14001, ISPO, RSPO dated July 29 to 31, 2015 carried out by the internal audit



who has had training as many as 12 people from PT. Hindoli and PT. Harapan. In an internal audit

had found evidence of audit plan or schedule of audit realization, audit list check, audit scope and

audit methods.

In implementation of an integrated internal audit ISO 14001, ISPO and RSPO are found non

conformities about 136 NCR. Findings of 107 estates has been closed, 29 status is still open. While

for PKS, about 63 is closed and 7 status is open.

Non Conformity report/audit NCR dated July 29 to 31, 2015 has been closed, followed by recording

of corrective and preventive actions.

To review the effectiveness of system, maintenance suitability LK3MKP Integrated management

system, organization with ISO 9001, 14001, ISPO, RSPO conducted management reviews, which

was attended by the heads of sections and led by the Top Management and review held at least

once a year. The last management Review Meeting conducted on August 14, 2015

Management review results are recorded and documented in the procedure (PPG/MR/10/SOP).

The Company has been conducted a changes. One of them can be seen from land visit in Loading

Ramp. Good coordination among estates and Pal Oil mill with fraction determination, making reverse

osmosis house for drink water needs of employee.

Organization has conducted internal audit integratedly for ISPO, RSPO and ISO 14001 system on

July 29-31 2015. Non comfomities are found during internal audit and has been followed up with

corrective action based on notes in corrective action request form.


C.3 Identified Non-Conformances and Noteworthy Positive Components

The company shows good intention and has high commitment to implement RSPO, it can be seen

from the intention of the company to correct the daily wages of cassual worker according to

regulation, widening the riparian zone according to local regulation that may decrease the plantation

area.

The company has also shows commitment to safety and health of its workers by providing

appropriate PPE, health surveillance to chemical handler and workers exposed to high noise,



prohibition to pregnant and breasfeeding female worker to work with chemical.

RSPO SUPPLY CHAIN CHECKLIST – MODUL

PT. Poliplant Sejahtera has implemented the supply chain system procedures as required

in RSPO certification. The Company has set the supply chain system categorized as

module E scheme (CPO Mill – Mass Balance).

E.3 Documented Procedure

E.3.1

A. SOP RSPO Mass Balance No. SCS/PPG/EHS/01/SOP, September 1, 2015 (RSPO

supply chain certification for CPO mill - mass balance): The procedure set suppy

chain system that adopted by the Company is mass balance. The procedure set that

mill receives FFB from kernel, smallholdings, as well as outdoor estates.

B. The person in charge who has authority over the supply chain is identified: In the SOP

has been set person in charge who has authority over the supply chain, namely: Yogi

Wicaksono as Sustainability Manager who is responsible for ensuring the

implementation of RSPO supply chain system in PSA. Mr. Yogi Wicaksono have

obtained internal training on September 11, 2015.

Socialization procedure No.SCS/PPG/EHS/01/SOP, 1 September 2015 (RSPO supply

chain certification for CPO mill - mass balance) is also conducted to the KTU, grading

operator, operator scales, process assisstant, lab assistant by Mr. Yogi Wicaksono on 12

September 2015, but there are other relevant officers have not included in this socialization,

such as weigh bridge operator named Mr. Eliyudin and Miss. Maryati. This finding was

raised as major non conformity no. 3. As corrective action, the mill has conducted

socialization to several personnel relating to the implementation of RSPO SCCS. This

corrective action is considered adequate.

E.3.2



TBS acceptance procedures certified and non certified is documented in procedure

No.SCS/PPG/EHS/01/SOP, 1 September 2015 (RSPO supply chain certification for CPO

mill - mass balance) 4.4 b

E.4 Purchasing Goods In

E.4.1

Procedure No. SCS/PPG/EHS/01/SOP, 1 September 2015 (RSPO supply chain certification

for CPO mill - mass balance) points 4.4 b explained that under normal circumstances, the

identification label RSPO certification and logo MB certified automatically through the

application of scales and in a state of abnormal. Identification use the manual stamp with

the logo "certified MB"

Today the use of system above has not been conducted, but on the weigh ticket of fruit that

comes from the core and non-core are separated. Weigh ticket of the fruit core named

"SHME" and weigh tickets from plasma marked "SHMS". That would make it easier to

distinguish the fruit certified or that are not certified. Currently certified fruit is the kernel fruit.

E.4.2

Organizations has sets procedures No.SCS/PPG/EHS/01/SOP, 1 September 2015 (RSPO

supply chain certification for CPO mill - mass balance) clause 4.8.2 that will inform the

management immediately if there is an excess of CB projections input/output certified.

E.5 Record Keeping

E.5.1

a) Currently, the organization has not made a record in real terms, but it only made the

simulation of real data reception of TBS which is split between the core (certified) and non-

core (non-certified). These records module created in excel format that is filled manually

from the proceeds of FFB and CPO/PK expenditure. From the test results of this module,

there is still a formula error in the calculation of the quarterly balance in last stock.

Organization needs to reexamine this module to ensure that all the formulas used correctly.

This finding has raised as major non conformity no. 3. As corrective action, mill has

conducted correction to the calculation manual. This finding is degraded as observation

pending to the evidence of the implemention in the upcoming surveillance audit.



b) Based on the examination results of testing the use of mass balance calculation module,

CPO expenses derived from certified and non-certified products have reduced the stock

correctly according to the type of CPO issued

c) Although allowed by RSPO SCCS 2014 to deliver certified product before sell short, but

the procedure No.SCS/PPG/EHS/01/SOP, 1 September 2015 (RSPO supply chain

certification for CPO mill - mass balance) item 4.3.2 C. Organisations must send positive

stock.

E.5.2

There are no processes or activities that are outsourced to the third party



D.2. Statement by the Certifier Body on Behalf of PT. Sucofindo SBU-SICS

We, the undersigned declare that the information and conclusions included in this report have been

prepared in accordance with rule and standard of RSPO, P&C, and that the certification decision has

been based upon this information.

Verified and Reviewed by:

Name Tuti Suryani Sirait

Position Senior Lead Auditor

Signature

Date 12th August 2016

Approval

Name Triyan Aidilfitri

Position Senior Manager

Signature

Date 12th August 2016



List of Abbreviation

AMDAL Analisa Mengenai Dampak Lingkungan (Environment Impact Study

Report)

ANDAL Analisa Dampak Lingkungan (Environment Impact Analysis Report)

BOD Biological Oxygen Demand

BPJS Badan Penyelenggara Jaminan Sosial (Social security Agency)

BPN Badan Pertanahan Nasional (National Land Agency)

COD Chemical Oxygen Demand

CPO Crude Palm Oil

CSR Corporate Social Responsibility

DOE Department of Environment

EFB Empty Fruit Bunch

EIA Environment Impact Assessment

FFA Free Fatty Acid(s)

FFB Fresh Fruit Bunch

FSMS Food Safety Management System

GMP Good Manufacturing Practice

GPS Global Positioning System

Ha Hectare(s)

HACCP Hazard Analysis and Critical Control Point

HCV High Conservation Value

HGU Hak Guna Usaha (Land Use Title)

HSE Health Safety Environment

IEMA Institute of Environmental Management and Assessment

IPB Institut Pertanian Bogor

IRCA International Register of Certified Auditor



K3 Keselamatan dan Kesehatan Kerja (Occupational Safety and Health)

KAN Komite Akreditasi Nasional (The Indonesian Accreditation

Committee)

KKPA Kredit Kepada Koperasi Primer

KLH Kementerian Lingkungan Hidup (Ministry of Environment)

LCC Legume Cover Crop

LSM Lembaga Swadaya Masyarakat (NGO(s))

MOU Memorandum of Understanding

MSDS Material Safety Data Sheet

MSJA Mesuji Estate

NC Non Conformity

NCR Non Conformity Register

OER Oil Extraction Rate

OSH Occupational Safety and Health

OSHAS Occupational Safety and Health Assessment Scheme

P&C Principle and Criteria

PHT Pengendalian Hama Terpadu ( Integrated Pest Management/IPM)

PK Palm Kernel

PKO Palm Kernel Oil

POM Palm Oil Mill

POME Palm Oil Mill Effluent

PPE Personal Protective Equipment

PSA Poliplant Sejahtera

RSPO Roundtable on Sustainable Palm Oil

RKL-RPL Rencana Kelola Lingkungan dan Rencana Pemantauan Lingkungan

(Environment Management Plan – Environment Monitoring Plan)



SA8000 Social Accountability 8000

SIA Social Impact Assessment

SIO Surat Izin Operator

SOP Standard Operating Procedure

SMK3 Sistem Manajemen – Keselamatan dan Kesehatan Kerja

(Management System of Occupational Safety and Health)

TTD Tim Tanggap Darurat (Emergency Response and Preparedness)

UKL Upaya Pengelolaan Lingkungan (Environmental Management

Efforts)

UPL Upaya Pemantauan Lingkungan (Environmental Monitoring Efforts)

WWTP Waste Water Treatment Plant

WHO World Health Organization



APPENDIX -1

MAP



HCV MAP



TOPOGRAPHY MAP



PLANTING YEAR MAP



APPENDIX- 2

NCR



Non Conformity Register Audit Stage 1

No Category Clause Std Auditor

Description Root Cause Investigation*

Corrective Action &

Evidence*

Audit Team Review

(1) (2) (3) (4) (5) (6) (7) (8) (9)

1 Major

5.1

RSPO HDY The Company has not change environmental permit related to business ownership changing in accordance with Peraturan Pemerintah no 27 2012 article 50, paragraph 2.a.

The Company has not received any information or instruction from local authorities regarding to PP 27 2012 if there is a change of ownership should change the environmental permit.

Clarify this matter to the Government through Kantor Lingkungan Hidup/ Local Government Office of Environmental Ketapang Regency (August 31, 2015).

OPEN. Response is not adequate.

2 Major 4.6 RSPO HDY/AMR

Cholinesterase examination for pesticide workers has not been done every 6 months in accordance with Peraturan Menteri Tenaga Kerja no. 03 1986, article 7.

Special examination has not been conducted for the first semester since the company has not get the provider to carry out the examination.

Looking for provider to carry out the special examination, then asking for cost agreement. (Target: 7 Sept 2015)

OPEN



3 Minor 2.1

RSPO HDY/AMR

- There are regulation that have expired in the list of regulation, such as PP RI no. 18 1999 has been replaced with PP no. 101 2014, Keputusan Menteri Lingkungan Hidup no. 51 1995 has been replaced with Peraturan Menteri Lingkungan Hidup np 05 2014. - There are regulations that have not been identified, such as Peraturan Menteri Lingkungan Hidup no. 112 2013, local regulations, and licenses that owned by Company.

The regulations have not updated regularly

Regulatory updates will be conduct periodically, minimum every 6 months. (August 31, 2015)

Obs. Licences that owned by Company still not registered in the list of regulation

4 Minor 5.6 RSPO HDY/AMR

Objective environmental target was not specific and measurable so its difficult to monitor its achievement.

Objective environmental target was not specific and measurable.

Establish environmental objective and target specifically and measurably. Target : First week of Sept '15

CLOSED (AMR. 8 Okt 2015)

5 Major 4.7.2 RSPO HDY Hazard Identification and Risk Control K3 need to be reviewed following the occupational accident when performing maintenance to rotating objects which was not conducted according to excisting control

Hazard identification was not detail

Conduct a HIRAC review to aspects of all relevant activities (week II Sept 2015)

CLOSED



6 Major 4.7.3 RSPO HDY Company does not have a workforce that is equipped K3 certified training field among others P3K, fire class A, B, C and D

In progress of proposing

Training will be conducted on 15 September 2015 onward

OPEN

7 Minor 4.7.5 RSPO HDY 1. Company has a clinic, but it has not obtained operational license from Ketapang District Health Office. 2. The company doctor has not been appointed as Hiperkes doctor by the Ministry of Labor (Permenaker no. 03 of 1982 Article 5)

Clinic permit has been submitted to the integrated services and district health offices of Ketapang, but the permit can not be issued because there is no recommendation of health centers and license of paramedic. Doctor had only letter of appointment for the previous company

Compani's legal department in ketapang, has proposed recommendations from health centers. It was estimated to be completed within two months. Submitted a letter of appointment of Manpower (October 2015)

CLOSED

8 Major 4.8 RSPO HDY Company never conducted training in the use of PPE to the personnels who were exposed to the hazard of noise and polluted air in their working place

Training of noise and air Hazard Risk and its relating Control never been

Conducting training to the employees who were exposed to hazard of noise and polluted air

CLOSED



conducted to the exposed employee

Target : Week I September 2015

9 Major

4.7.5

RSPO HDY Company has not documented specific instructions work instructions according to the identified potential emergencies i.e land fires, fire factories, chemical spills

Work instructions on the counter measures against mill land fire emergencies, as well as chemical spillagel was not available

Documenting work instruction on the emergency planning against mill and land fire as well as spillage Target : 01 September 2015

CLOSED

10 Minor 4.7.5 RSPO HDY Infrastructure and equipment of fire-fighting owned by company was indadequate according to the guidelines of land fire control from the Directorate General of Plantation

Infrastructure and equipment of fire-fighting owned by company was indadequate according to the guidelines of land fire control from the Directorate General of Plantation

Completing the infrastructure and equipment for controlling land fire according to the guidelines from Directorate General Of Plantation. Target : 27 August 2015

OPEN



11 Major

2.1

RSPO HDY/AMR

1.The percentage achievement of compliance with laws and regulations is not available. 2. The Company do not have permit to utilize underground water.

1. The evaluation has been done, but the percentage achievement of compliance has not been established. 2. The Company has not made arrangement to get permit of underground water.

1. Evaluate the achievement of regulatory compliance (September 2, 2015) 2.Coordinate with the government regarding the procedure for requesting permission of underground water (August 31, 2015)

1. OPEN 2. CLOSED. (AMR. 8 Okt 2015)

12 Obs

8.1

RSPO HDY Minutes of the meeting of the management review dated August 14, 2015 did not include the achievement of targets and objectives, the status of corrective and preventive actions, regulatory compliance evaluation and did not take up the RSPO P & C 8.1

In the management review have been discussed regarding the achievement of targets, the status of corrective actions and result of evaluation of compliance, but the information was documented in the attached

Minutes of meeting will be added with the achievement of targets and objectives, the status of corrective and preventive actions, regulatory compliance evaluation and did not take up the RSPO P & C 8.1 (5 September 2015)



separate file during the presentation.

13 Major 4.7.4 RSPO HDY The organizational structure of Safety Commitee in Mill need to be revised. This is because the chairman of Safety Commitee is not top management and the secretary is no longer active

Mutation and movement of key person

Submit a letter of notification regarding the change of safety commitee personnel and request approval from Local Manpower authority of Ketapang (Minggu I Sept 2015)

CLOSED

14 Minor 4.7.3 RSPO HDY There was no renewal of legal inspection to electrical installation which was certified since October 1, 2007

Letter of renewal legal inspection of electrical instalation has been submitted to local manpower authority on 08 Auguts 2014

Follow up to local manpower authority (Sept 2015)

Closed, there was no requirement for legal inspection to electrical instalation



15 Minor

4.4

RSPO AMR The volume of surface water withdrawal exceeds the provision as specified in the permit Izin Pengambilan dan Pemanfaatan Air Permukaan No. 616.4/83/Distamben-D/2013 with amount of 332.949 m3.

Actual water consumption based on usage of surface water

Review the water consumption and apply for additional permit, if required. (first week of September, 2015).

OPEN. It will be seen in Stage 2 (AMR. 8 Okt 2015)

16 Minor 4.6.10 RSPO AMR Training on proper waste disposal has not been done to all manager.

Training on management of waste disposal has not been done to the manager level.

Conduct training of waste management to all manager in PSA Target : First week of September 2015

CLOSED. (AMR. 8 Okt 2015)

17 Minor

5.3

RSPO AMR Hazardous material waste, rags contaminated has not been included in temporary storage permit of hazardous waste material / Izin Penyimpanan Sementara LB3 PT. Poliplant Sejahtera No. 394/KLH-B/2013.

This permit has been evaluated by environmental government, as the result of the evaluation by PROPER team in 2015, the permit eligible which is contaminated rags is included in the category of hazardous waste material

Clarify this matter with local government of environment in Ketapang

OPEN. The evidence of corrective action is not avaliable. (AMR. Oct 8, 2015)



which could be stored in the TPS LB3.

18 Minor 5,6 RSPO AMR Calculation of GHG emission do not yet reported to the RSPO Working Group.

GHG emission calculation has been done, but not yet reported to the ISPO WG

Submit GHG emission calclation to RSPO WG. (September, 10 2015)

OPEN. The evidence of corrective action is not avaliable. (AMR. Oct 8, 2015)

19 Major 3.1.1 RSPO Cert System 4.2.3

RSPO AMR The Company has not established management plan to ensure 100% of farmers and smallholders implement RSPO P & C certification standard within 3 years.

The company has not established the management plan in writing by signing of the management, but this management plan has submitted in ACOP report 2014.

Will be made an update of the Management Plan for Time Bound Plan RSPO's Smallholder (Sept 5, 2015)

CLOSED. (AMR. 8 Okt 2015)

20 Major Supply Chain Audit: Module E Mass Balance

RSPO AMR a. The personnel who is responsible to implement SCC standard has not received RSPO SCCS 2014 training. b. The Company has not implemented a system that separates RSPO MB-certified palm oil products and uncertified palm oil.

a. The Company has not conducted RSPO SCC training. b. The Company has not establised mechanism/procedure to separate certified

a. Conduct SCC training (second week of Sept, 2015) b. Establish procedure to separate certified and uncertified sustainable palm oil. (first week of Sept, 2015)

Will be checked in stage II audit



sustainable palm oil.

21 Obs Supply Chain Audit: Module E Mass Balance

RSPO AMR It is suggested that refferencee in supply chain procedure refer to the latest standard, i.e RSPO SCCS 2014 and applied module is a module E.

Reference in SCCS procedure still use old procedure.

Using RSPO SCCS 2014 standard as reference in procedure. (first week of Sept, 2015)

22 Minor

2.2

RSPO RB The Company already has a list of coordinates peg HGU as many as 20, but the company does not have mechanism of peg treatment monitoring.

Closed : Company has had SOP for peg inspection BPN No:PAS/PPG/EHS/44/SOP

23 Major

3.1

RSPO RB The Company could not show the long-term plan (CPR) on the viability and long-term financial.

The Company has not established detail of replanting plan.

Establish the 5th Annual CPR. The plan includes replanting plan, production project, projected yield, price forecasts and financial indicators including smallholder development plans (12 Sept 2015)

Closed: Company has had long-term plan including viability and financial.



24 Obs 4.5

RSPO RB The Company has had a census worker for each Division, coordinated by the foreman in each division, but census workers do not have a letter of appointment as EWS team. The company should have a team of EWS that has been appointed by the Decree (SK) as EWS team and been given training of HPT.

Cencus workers have not had letter of appointment (SK) as EWS team.

Make SK for EWS workers after given training of HPT. Target (Week I on Sept 2015)

Closed: Company has established EWS workers with SK No: 251/EM/PSA-SHME/SKK-EWS/VIII/2015

25 Obs 4.1

RSPO RB The Company should immediately meet the shortage of harvester so that the production target can be achieved and anticipate the crop rotation is not too long.

Harvest worker has not met as needed

Meet the shortages of harvest worker as needed. Target : Week IV in September 2015

Open

26 Minor

6.5.3 4.4.1

RSPO WS/AMR

Tests of water from the WTP process and water resources in the location of the spring G36, employee inn div 2, employees inn 2, employee inn div 3, 4, and 5 exceeded the quality standard of Permenkes 416 1990 for turbidity and coliform. Example: - turbidity value of water reservoir is 10 NTU (quality standard is 5 NTU) and total coliform is 3 mpn / 100 ml (quality standard is 0 mpn/100ml).

Clean water exceed the quality standard of Permenkes 416 1990 for parameter of turbidity and coliform.

1. Re-testing in the laboratory. 2. Make internal memo to suggest that drinking water must be cooked to temperature 100⁰ C in order Coli bacteria die and conducted socialization during the morning briefing. Target: Week I Sept 2015

OPEN. The test results of water quality after the installation of RO will be seen during the audit stage 2.



- Clean water of springs G 36, the total value of colifom 43 mpn / 100 ml, fecal coliform is 23 mpn/100 ml. - Clean water in the employee inn div 2, the total value of coliforms is 43 mpn / 100 ml, fecal coliform is 23 mpn/100 ml .

3. Installation RO (Riverse Osmosis) in Emplacement.

27 Obs 6.5.3 5.2.3

RSPO WS a. The Company provides two buses to transport children to school. The thing to note is the condition of one of the buses are quite old and do not have the air conditioner (AC) so they must be open the bus window. It is quite risky to the health of children in the dry season when dust pollution is very high. Efforts need to be sought to overcome this matter. b. On the list of facilities provided in the area of SHME and SHMM unit, sports facilities is not available.

School buses is not provided Air Conditioner

Create Job Request for AC instalation

Form of Job Request for AC instalation is available no. 051 dan 052 date 28/8/2015, but the evidence has not realized yet. Status: OPEN

28 Major

6.5.2

RSPO WS a. The labor agreement for the casual worker (PHL) both in SHME and SHMM yet been made. This is not in accordance with the provisions Kemenaker No.

a. There are no agreements form for PHL b. Socialization is not available

KTU make labor agreement with the assistant. Askep socialize PHL rights and obligations,

Response evidence regarding to this finding is not available. Status: OPEN



100/2004 on PKWT Implementation Provisions of Article 10 and 12. b. In addition, there is no documented evidence that an explanation of the payment and working conditions has been explained to them.

including wages and the type of work (Week I Sept 15)

c. The Company carries out Report Obligatory (Act No. 7 of 1981), once a year. Last performed on October 31, 2014. There is no evidence that the company had reported PHL labor in SHME and SHMM, while they are already working more than 7 days. This is not in accordance with the provisions of Decree No. 100 / MEN / VI / 2004 Article 10 and Article 12.

PHL labor is yet to be reported 7 days after labor PHL work, but the company reported it to reports of notifiable labor (laporan wajib lapor tenaga kerja).

PHL Labor reported periodically in accordance with Decree No. 100 / MEN / VI / 2004. Evaluate PHL labor to be appointed as permanent employees (Week II on Sept '15)

Response evidence regarding to this finding is not available. Status: OPEN

29 Major

6.8.1

RSPO WS Getting Equal Opportunities Policy, simply stated "respect and rights of employees in equal opportunities", did not include a statement granting equal opportunities to affected neighborhood / local.

The point of this matter is not included in policy

Policy Review (Week I Sept 2015)

There is evidence of a policy revision that already put in "equal opportunities for the local society", rev.01 / 27/08/2015. Status: CLOSE

30 Major 6.9.1 RSPO WS a. The Company has a policy related to the prevention of all forms of

The point of this matter is not included in

Policy Review (Week I Sept 2015)

There is evidence of a policy revision that already put in



abuse and sexual violence, in the form of Policy on Sexual Violence and Crime, signed by the President Director. The policy still inadequancy because it did not include aspects of sexual harassment, only related sexual violence.

policy "element of prevention sexual harassment" (rev.01/27/08/2015). Status: CLOSE

b. Gender Committee that would bridge and address the issue of women's rights have not been established

Gender committee is not available

Form the Gender Committee. Target: Week II on September 2015

Evidence OK Status: CLOSE

31 Minor 6.9.1 6.9.2 6.9.3

RSPO WS The Company has not shown that it provides socialization to all workers and all levels, related to the following: (a). policies reproductive rights of women, (b). prohibition of harassment and sexual assault, and (c). internal complaint resolution procedures

There has been no evidence of socialization to all workers and all levels, related to: (a). policies reproductive rights of women, (b). prohibition of harassment and sexual assault, and (c). internal complaint resolution procedures

Conduct re-socializing to all employees and all levels regarding to policy and document it. Target: Week IV Sept 2015

There is evidence of attendance list of meeting on tgl.8 / 9/2015 attended by around 130 woman workers. Status: CLOSE



32 Minor

6.9.3

RSPO WS a. In the recording internal complaint handling activities, there is a settlement that is not supported by sufficient evidence and Berita Acara as well as the settlement notification to the applicant. b. Mill has not made a recapitulation book / record of incoming complaints.

Completion of the complaint was not supported by sufficient evidence and Berita Acara as well as the settlement notification to the applicant.

Change the internal complaint form by completing Berita Acara. Target: Week III Sept 2015.

No response/ evidence Status: OPEN

33 Minor

4.7.6

RSPO WS Related BPJS program, for PHL level: (a). Registration per date 14/08/2015 to BPJS Ketenagakerjaan in SHME still in the process, as many as 306 people. (B). As for BPJS Kesehatan still in the preparatory process for the registration data completeness. (C). BPJS program has not been registered in SHMM

a. Registration of BPJS Ketenagakerjaan is in the process b. Registration BPJS Kesehatan also in the process of registration.

Complete registration of BPJS ketenagakerjaan and BPJS kesehatan (Week III Sep 2015)


34 Minor

6.2.2

RSPO WS Job description (Position Description) is created and recorded in the form JD-ESTATE-01 Rev. 0, Effective June 1, 2015. It consists of : Senior Manager, Estate Manager SHME and SHMS (Smallholder), Askep, KTU, Askep EHS (= Askep PAC, Assistant Agronomy, nurse, assistant EHS (Assistant

Jobdesc of CSR officers and the receipts have not been made

Make sure all of job descriptions and lists provided and signed by the staff / employees who work in office from Manager level until Foreman/Supervisor level (Week III Sept 2015)




PAO), Assistant IT. Things need to be improved are: (a). jobdesc for CSR officers can not be shown. (b). Jobdesc in SHME is no record of receipt and signature of workers / staff who work in office.

35 Minor 6.10.3

RSPO WS Cooperate Agreement No. 006 / PSA-MKJ / SPK / IV / 2014 dated 10.04.2014 between PT. PSA with PT. Mandiri Kapital Jaya on sale and purchase of oil palm FFB, was over per 31.12.2014. But until July 2015 there is still a supply activities of FFB and new contracts are not in the place.

Addendum document is already available, but during audit it can not be demonstrated.

Addendum document is available (28/8/2015)

Revision Evidence of Agreement / Addendum has been attached. Valid until 31/12/2015. CLOSE. But when the stage-2, it already expired. CHECK AGAIN.

36 Major 5.2.1 RSPO AMR/NR

The Company could not show the documents (reports) the identification of HCV in PT PSA that has approved by the management.

HCV report was finalized but has not been bound (dijilid) and signed by Management

The report has been bound and signed by Management (Week II Sept 2015)

HCV reports already approved by management but can not be shown - OPEN

37 Major 5.2.2 RSPO AMR/NR

a. The Company has HCV management plan but has not referring to the results of the identification of HCV. b. Evidence of implementation of monitoring the HCV habitat is available but has not

Plan Management and Monitoring of HCV are still referring to the standard management of HCV in

Revise Plan for Management and Monitoring of HCV compliance with HCV Report that already approved by management (8

a. HCV management program which refers to the identification of HCV results can be demonstrated. (CLOSE)



referring to the results of identification of HCV.

general. Sept 2015) b. Evidence of Implementation of monitoring / security HCV habitat which refers to the identification of HCV has not been demonstrated. (OPEN)

38 Minor 5.2.3 RSPO AMR/NR

Work instructions (INK) of Management and Monitoring of HCV is not yet available.

SOP Management and Monitoring of HCV has been available but has not arrange the INK.

The INK will be made according to the SOP Management and Monitoring of HCV (10 Sept 2015)

Work instructions (INK) of Management and Monitoring of HCV can be demonstrated --CLOSE

39 Minor

5.2.3

RSPO AMR/NR

a. Coordination with BKSDA West Kalimantan related handling wild animals have not been conducted. b. The results of animal and plant monitoring is available but has not been referred to the results of the identification of HCV.

Result Assessment of HCV has not been reported to the BKSDA

Reported the presence of rare plants and animals around PT. PSA to BKSDA Kalbar (8 Sept 2015)

a. Evidence of coordination with the BKSDA West Kalimantan has been associated with the presence of HCV. It can be demonstrated (CLOSE) b. Results of monitoring animals and plants which refers to the identification of HCV can not be shown (OPEN)



40 Obs 5.2 4.6

RSPO AMR/NR

The Company has made and installed the HCV sign boards at strategic locations to known by employees and the community in estates. The content are appeal and ban ; include a ban on hunting of felling trees, burning forests, fish poison and damage the protected areas, but writing the names of plants and animals is not appropriate with the rules of correct writing.

Rules of correct writing has not been checked

Writing rules will be checked, and the signboard will be repaired (12 Sep 2015)

Corrective actions need to be done by checking the in field (OPEN)

41 Major 6.1.1 RSPO WS/NR

a. The company could not show documents results of SIA studies that have been approved by the management b. SOP Donations / sponsorship No. CSR / PPG / CA / 01 / SOP is available, but has not set the procedure of preparation of CSR programs based participatory planning according to the results of social mapping. c. CSR activity plan that refers to the SIA study results are not yet available. d. Record of meeting with stakeholders in order to

- At the time of audit, SIA report is still in draft - Whole Social mapping , including the PSA, which refers to the draft SIA report has not been made by CSR team

Conduct social mapping, not only for the PSA, but for all companies, create special SOP for CSR and short-term and long-term program planning based on the SIA report for CSR.

The Company has not shown evidence of SIA document, SOP of CSR, CSR activity plan, the record-making CSR participatory planning, program control negative impacts, management plans and monitoring of social impacts. (OPEN)



make CSR participatory planning is not yet available. e. Program created by the Company to cope the negative impacts are not yet available. f. Company did not have a management plan and monitoring of social impact through community participation which is done regularly.

42 Major

6.2.1

RSPO WR/NR

a. The Company has documented the request and response information in the incoming and outgoing mail, but not enough evidence shown that documentation is well done and detailed.

There is no evidence that the documentation is well done and detailed.

Documenting the information requests and responses in detail. Target Week II sept 2015

Company has not shown evidence of corrective requests and feedback information (OPEN)

b. Footage (archive) of request for information (incoming mail) and response record of the company to request information from the stakeholders is available, but it still managed manually (not computer based) so it is difficult to trace the letters / documents. c. The Company has not been able to show a list of

b. Footage (archive) of request for information (incoming mail) and record the response of the company to request information from the stakeholders is available, but it

b. Footage (archive) of request for information (incoming mail) and record the response of the company to request information from the stakeholders is conducted with computer-based. c. Register the list



stakeholders in the areas of the company, including religious leaders, traditional leaders, village heads, members of plasma, cooperatives, local police, contractors, suppliers, and related instances. But they are equipped with name and address.

still managed manually (not computer based) so it is difficult to trace the letters / documents. c. List of stakeholders in the areas of the company, including religious leaders, traditional leaders, village heads, members of plasma, cooperatives, local police, contractors, suppliers, and related agencies is not recorded.

of stakeholders in the area of the company, including religious leaders, tokohadat, village heads, members plasma, cooperatives, local police, contractors, suppliers, and related agencies are equipped with name and address. Target: the first week of Sept 2015

43 Obs

6.2.2

RSPO WS/NR

Log book monitoring letter or request for information has been available, but the management and monitoring is conducted manually.

Log book monitoring letter or request for information is conducted manually.

Carry out monitoring of letter/ log book manually and using computer. Target : 29 Agst 2015

Company has not shown evidence of corrective requests and feedback information (OPEN)



44 Major

6.3.1

RSPO WS/NR

The Company has had SOP on receipt of information, complaint and dispute resolution No. COM / PPG / CA / 01 / SOP, but It still general (not specific) on the handling complaints and the settlement of disputes effectively, timely and by the correct way.

Specific findings by the auditor regarding the SOP that specifically deal with land disputes, but it can be integrated into existing SOP communication, and added more specific clauses.

Communication with the legal and related departments to SOP revision.

Company has not shown yet SOP that specifically deal with land disputes (OPEN)

45 Major

6.3.2

RSPO WS/NR

a. The Company has made a claim settlement of local people on land were built for core estate PT PSA to promote consultation and involvement of stakeholders including indigenous and government agencies, but not yet equipped with a chronological record handling. b. There are recordings of land acquisition through the development procedure of estates with the PIR Trans. but has not yet include records of all participants and other supporting documents.

a. Chronological recording has not completed b. The recording of all participants and supporting documents has not completed

a. Will be completed chronological settlement (August 31, 2015). b. Provides recorded of all participants and documents (August 31, 2015)

The company could not show the chronological settlement of claims that have been completed also recording of its supporters (OPEN)



Stage II Audit No Category Clause Std Audi

tor Description Root Cause

Investigation* Corrective Action & Evidence*

Audit Team Review

(1) (2) (3) (4) (5) (6) (7) (8) (9)

46 Major 6.4.1 RSPO WS/NR

Company can not indicate chronological record background in acquisition of land to develop estates of PT PSA through the PIR Trans.

Chronological already exists but is not yet complete and documented

Chronological will be made and signed by the management (10 Sep 2015)

The company has demonstrated chronological

acquisition of land (CLOSE)

47 Minor

6.11

RSPO WS/NR

a. The Company has been providing support to communities around the estate in the form of donations, improved infrastructure, contribution to national and traditional celebrations but the submission / proposal is still being responsive from the parties. b. The Company could not show documents short-term plans and long-term regarding to CSR programs based on the results of the social assessment (SIA). c. Evidence of evaluation mechanism of implementation of CSR is not available.

- At the time of audit, SIA report is still in draft. - Whole social mapping, including the PSA, which refers to the draft SIA report has not been made by CSR team

Conduct social mapping, not only for the PSA, but for all companies, create special SOP for CSR, short-term and long-term program planning based on the SIA report for CSR.

Company has not shown evidence of social mapping as the SOP material compiler and CSR programs. (OPEN)



1 Major 2.2.1 RSPO RB There is the difference of capasity permition process between capasity in SPUP No. 198/Menhutbun-VII/2000 (60 Ton FFB/Hour) with Permanent Business Permit about 95,200 Ton/Year.

There is revision of Industrial Business Permit in 2013

The Company showed Industrial Business Permit issued in 2013 with production capacity 60T/Hour.

Closed. The Company has had Letter of Industrial Business Permit from Department of Industry and Trade Ketapang district No.353/002/Kop.UKM.Perindag-C/KBLI.15144/I /2013

2 Major 2.3.1 RSPO NS There was Estate Map that shows land wich is not authority of the Organization as illustrated on HCV Map in Report dated 12 October and SIA conducted by Daemeter in Report No. 06/November 2015. But, the map scale was less than 1:10.000 as per RSPO general check list

Map on Report size of A4 can not use 1:10,000 of scale.

Prepare softcopy of Map and Print out with scale of 1:10,000.

Closed

Organization did not have SOP for FPIC. On procedure of Land dispute LCP/PPG/HUMAS/02/SOP, there was no requirement of FPIC.

SOP is not input FPIC yet completely

Need Review and revision of SOP

Closed

3 Major SCCS Module E : Mass balance

RSPO NS a. Procedure of socialization No. SCS/PPG/EHS/01/SOP, 1 September 2015 (RSPO supply chain certification for

Socialization is not conducted yet to Eliyudin and Maryati.

Socialization has conducted to Eliyudin and Maryati dated 16 January 2016.

Closed.



CPO mill – mass balance) also conducted to KTU, gading operator, balance operator, assistant of process, lab assistant by Yogi Wicaksono on September 12, 2015, But it is still related to officers that is not followed the socialization yet i.e operator of weighing-bridge on behalf of Eliyudin and Maryati.

b. Module Balance Test of SCCS still has wrong formula in 3 months balance on last stock counting. Organization should test the modul to ensure that all formula getting right.

There is typo in formula.

Recheck and do correction of table modul of mass-balance.

Observation

c. Organization is not conducted simulation of SCCS module balance yet for Kernel Palm Oil product.

Modul Balance simulation is not conducted yet.

Modul Balance simulation for kernel palm oil will be conducted

Closed

4 Major 4.7.3 RSPO NS Total of boiler operator that have good quality still not sufficient. Organization only has 1 boiler operator class 1, while PKS operate for 2 shift time.

Operator has had qualification but is not certified yet.

The Operator will follow the training of Boiler operator class 1. The operators name are Oktavianus Mada and Juventus

Degraded as observation, will be checked during the next surveillance audit



5 Minor 4.7.5 RSPO NS Organization should make sure the whole hydrant box consist of appropriate equipment. On removal of hydrantbox in general warehouse, there was no equipped with nozzle

There has a nozzle but it was stored in warehouse.

Hydrant box will be equipped with nozzle and will do hydrant box inspection to whole Mill.

Open, corrective action is not sufficient yet, Organization has not submitted yet the form for routine hydrant box inspection

6 Major 4.7.2 RSPO NS a. The hazard identification, risk assesment and control has not been made for all activities e.g carrying chemical tank by using truck with employees.

The activity is not identified yet

Do identification and risk control towards this activity and how to control it.

Closed

b. There was no technical specification about masker that used by sprayer.

Specification was not supplied by supplier.

Masker that used by sprayer was standardized by using chemical respirator 3M 3100 series

Closed

7 Minor 5.6.3 RSPO NS Organization has calculated greenhouse gas using RSPO calculator. But, It still had error when inputing data i.e. FFB receipt data about 68.142.540 mt, using of urea about 220.293 mt

There still have errors when input data such as reception FFB data about 68,142,540 mt while actual reception FFB data is about 6,814,254 mt

Open, There is no corrective action submitted yet.

8 Observation

5.1.1 RSPO HDY Company is still making progress on arrangement of

Open, There is no corrective action



Environmental permit change in relation to the change of the ownership of the company according to PP RI no. 27 2012 article 50 clause 2. It was advised that company to focus on working until the issuance of the permit

submitted yet.

9 Minor 4.4.3

RSPO

HDY The laboratory used to analyze BOD5 has not been accreditation yet.

BOD5 parameter has not been accredited.

BOD5 analysis will be conducted in Baristand Laboratory, which has been accredite for BO5 analysis

Closed. Organization has conducted corrective action and had evidence.

10 Minor 2.1.4

RSPO

HDY SOP of waste management no. PAS/PPG/EHS /32/SOP should be revised because the underlying regulation that has expired i.e. PP 18/1999, PP 85/1999 dan Kep.Bapedal 05/1995

List of Regulation on SOP has not updated

SOP has been updated and revised

Closed

11 Minor 5.1.3

RSPO HDY The RKL RPL report for second semester of 2015 to BLH level 2 of Ketapang district and level 1 of West Kalimantan Province has not been conducted , but there is result analysis from laboratory.

RKL RPL report was processed on last stage.

Organization will finish report and send it to Level 2 of BLH instance and Level 1 of Province.

Closed. Organization has conducted corrective action and had evidence.



12 Minor

5.3.3

RSPO

HDY 1. Inorganic Domestic landfill waste management was not applied according to SOP of waste management No. PAS/PPG/EHS/32 / SOP point 4.4.1 2. There was no program and long term target to reduce domestic solid waste, reduce exhaust gas emission, and reduce water consumption.

1. Waste Anorganic management is not found yet around Ketapang district of West Kalimantan 2. Company has conducted it, but it was not significant to reduce waste, emission, and water used.

1. Conduct utilization of Anorganic waste ouside of Ketapang district 2. Conduct review towards effort to reduce waste effort (PIC Mill : Wahyu ; PIC Estate : Irmus)

1. Closed. The Company has conducted management of plastic waste (inorganic) with third parties. Besides that plastic package is replaced with cans. (Evidence). So, no more inorganic waste to be piled in the soil. 2. Open There was no program, schedules and person in charge to reduce domestic solid waste, emissions, and water consumption.

13 Minor 1.1.1 RSPO TSS a. There was no mechanism for regular updating and verification of stakeholder data


b. There was no stake holder list and related information obtained from them


Company already determines the provision of information / report related to the environment but has




not identified spesifically the type of information that needs to be provided periodically to relevant institutions. In related SOP only mentions periodic reports related to environment.

d. There has been no SOP for a description / process to the sharing and dissemination of various information to relevant stakeholders


14 Major 1.1.2

RSPO TSS Company has been recorded all request and response information from stakeholders. In SOP and its implementation, Company has not set the time periode to give the answer towards the information request. At the time meeting with stakeholders, information is obtained that they never given certainty of time to any support request/information that delivered to Company. For example : related to demand of repair of roads, bridges and water-channel that delivered to representative of plasma

Time frame in SOP has not been determined.

Company will set Time Frame in SOP

Degraded as Observation. Procedure has been stated the hierarchy of respone and duration of information response no longer than 14 workdays.



SP3, SP5, SP 6, plasma does not get the answer on paper and certainty of time of that request.

15 Observation

2.1.2 RSPO TSS It was advised that SOP regulate matters regarding the regulations which should be implemented as soon as possible to be updated as soon as possible (do not wait until six months), for example, the application of UMK or banning the application of certain chemicals


16 Major 3.1.1

RSPO TSS The Company has been had replanting plan in 2018-2021. On previous Planting year’s data is 3794.6 Ha for core and 7746 for Plasma. Replanting plan still in the same area and is not contained area deficiency yet that can be planted because it is appropriate with HCV category.

Reducing of HCV Area has not input yet.

The Company has had replanting plan by putting reduction of previous HCV that planted is 3794.6 Ha become 3524.44 Ha (Reduction is about 270.01 Ha for HCV area).

Closed

17 Major 4.8.1 RSPO TSS a. Evidence of emergency response training towards the harvesting worker when there is an incident/accident is not found yet. Results of interviews in the field, harvesting worker showed

There is still lack of harvesting worker’s conprehension about emergency

The Company has taken corrective action by providing appropriate training material to the field

Closed



that they never undertake the training. Harvesting worker is equipped with whistle to call colleagues in case of the accident. The ascertainment in the field, showe that when harvesting worker blew the whistle, no foreman or other colleagues appeared.

situation. conditions. Evidence in the form of training and simulation when worker was bitten by a rattlesnake and struck down by the falling FFB. The training was conducted on March 29-31, 2016 and April 1- 2, 2016. The training was attended by assistants, foremen, clerks and harvest employees for about 152 people.



b. The Company has conducted meetings and training every month to the plasma. Last training was conducted on August 18, 2015 about 43 people. So far the training material is related to K3/safety. Training materials was not in accordance with the requirements that set in RSPO standard 4.8.1. For example training of pesticides handling and hazards to workers and their families.

No training program to plasma

The Company has conducted corrective action by conducting training to plasma farmer that represent all KUD. The training was not only related to K3/Safety but also with hazardous chemicals handling such as spraying and fertilizing.

Closed,



18 Major 4.4.2

RSPO

TSS/NRD

Based on the results of field survey to Sungai Garu in block D43 encountered wide riparian 10 m, while according to Presidential Decree 32 of 1990 on Article 16 letter a stated that the criteria river border at least 100 m on either side of the great river and 50 m on both sides of the creek which is outside the settlement. While under PP 38 of 2011 on the River stated that, a small river border (DAS <500 km2) as wide as 50 m from either side of the river.

Making decision about riparian river based on HCV recomendation Assessment Report.

The Company already conducted corrective action by revising the width of riparian river that should not be treated using any chemical treatment. Revisions include: Garu River, previous width is 6 meters to 50 meters, river batar become 75 meters, and river siriham become 50 meters.

Degraded as Observation. Implementation evidences will be seen at the next surveillance.



19 Observation

4.8.1 RSPO TSS Existing training materials were still in scientific language. Training materials should be adjusted to the level of understanding and are made specifically to ensure the trainee understand the material so that they are able to apply it as sprayers.

The training material has been adapted to the level of understanding and are made specifically to ensure retention of materialso that it can be applied in the work as sprayers.

Closed

20 Major 5.2.1

RSPO TSS In HCV file has been set NKT 4.1 about 780 Ha, such as Riparian river (Batar River, Siriham River, Silat River, Garu River dan Gahang River) and swamp.There was wellspring in G36 that used by local society and estate worker in rainy season and dry season. At survey in wellspring location, The Company has conducted protection by bounding wellspring area about 200 m and marking palm oil rod for ensuring there was no activity of chemical use (spraying dan manuring). In documentation report HCV assessment and Map of

Assessment Result from Daemeter Consulting

The map has been revised by the one which shows HCV 4.1

Closed



HCV, the wellspring was not set as HCV area.

21 Minor 5.2.5 RSPO TSS The Company could not show documented evidence of the agreement with the public to not to use HCV land for farming activities.

Open

22 Major 6.3.1

RSPO TSS a. Ascertainment in the field, the workers did not understand the mechanisms to make complaint and did not know about mechanism of complaint also not aware about box facilities and confidential complaints mechanism.

Complaint mechanism is not sosialized yet.

The Company has conducted corrective action about socialization of internal complaint handling and complaint mechanism and also technical of internal complaint handling in accordance with the procedure No. ER/PPG/HR/05/SOP. The Company has socialized it on February 9, 2016

Closed

b. In SOP and its implementation is not put regulation to complaint to RSPO (RSPO Complaint System) if solving problems does not satisfy either party

RSPO Complaint System did not input in SOP.

SOP revision will be conducted.

Closed



and also has not include a mechanism to confidential complaints

c. It has contained a provision by prioritizing consensus. But in it, when there is an anarchy, they asked for help to the police/military. The military should not be related to the public.

The Company has conducted corrective action about socialization of internal complaint handling and complaint mechanism and also technical of internal complaint handling in accordance with the procedure No. ER/PPG/HR/05/SOP. The Company has socialized it on February 9, 2016.

Closed

23 Major 6.5.2

RSPO TSS a. The Company has had Decree about wage of employees increase in 2015 No. 002A/PD-PPG/I/2015 includes provisions of wage structure and class status stipulation. SKU lowest daily wage is Rp. 1,980,000 and details of the daily wage is Rp. 66,000. The Company determined the daily wage by dividing UMK

Working days of 25 days has not applied in regulation.

The Company had conducted corrective action by applying the rules in accordance with 25 working days per 1 January 2016 (SK Issuance of Management No.003/PPG-

Closed



Rp. 1,980,000/30 days in a month. This is not appropriate with Government stipulation of 25 working days/daily so that minimum daily wage should Rp. 79,200. Hence, the difference in the daily wage about Rp. 13,200 per working day.

HRGA/I/2016). It has revised the previous administration of daily wage of Rp. 66,000 into Rp. 84,500 for the lowest class (working age <1 year).

b. The Company has made a direct contract with casual workers. Sampling on behalf of Iran with contract No. 300/SK/PSA-SHMM/X/2013, and also Fransiskus Ligo with contract No. 263/ SK/PSA-SHMM/IV/2013 which contains daily wage minimum (UMK) stipulation, But the contract has expired and UMK per 2016 has not been updated against these workers. In the field, the sprayers in the estate and sortation in the Oil palm mill (PKS) did not know the Government provisions relating to the application of UMK in 2016.

Contract of employees for year 2016 has not renewable.

The Company had conducted corrective action by issuing a decree No.031/SK/PSA-SHMM/I/2016 on behalf of Fransiskus Ligo and Decree No.032/SK/PSA-SHMM/I/2016 on behalf of Iran.

Closed



c. The Company has established overtime pay to casual workers about Rp. 9,900 per hour based on the calculation of the provision for overtime pay is (Rp. 66,000/40 hours x 6 days) = Rp. 9,900, -. This is not appropriate with the provisions of the government for overtime pay is (1/173 x Rp. 1,980,000) = Rp. 11.445 per hour so in this case there is difference / shortfall about Rp. 1.545 per hour.

The Company still apply daily salary based on one month salary divided to 30 days.

The Company had conducted corrective action by setting bonus about Rp.13,425 which are in accordance with government regulations.

Closed

d. The Company makes decision about bonus payment: example for harvesting workers about Rp.1,800 – 2,000/FFB. While its base is 75-90 FFB/HK. In this case the Company can not be sure whether the overtime pay is appropriate with overtime pay set by government.

Simulation of counting has not been conducted.

The Company had conducted corrective action to make the calculations to ensure the payment of bonus not smaller than overtime payment. Previous base about 202 FFB/HK for planting year 1993 and now become 149 FFB/HK.

Closed



e. There were 183 casual workers who have been working for several years. According to Government regulations, non permanent worker who has worked at least 21 days for 3 consecutive months, shall become permanent workers.

Casual workers could not meet requirement of administration. (Identity Card and Family’s Identity Card). There were also casual workers who worked less than 3 months.

The Company has conducted corrective actions by appointment of 147 casual daily workers as permanent daily workers (BHT) on January 26, 2016.

Closed

f. The Company has paid BPJS health for workers in the estates and miles but not for all workers.

Some of casual workers could not meet administration requirements (Identity Card and Family’s Identity Card)

The Company has conducted corrective action to register all workers who originally registered about 2446 workers become 2719 workers per month on February 2016.

Closed

24 Minor 6.5.3

RSPO

TSS It was found complaints from workers who are Catholics, in which they did not get facilities such as chapels or bus transportation to the place of worship.

There were many churches around Company that most of conggregation was from Poliplant

Supplying transportation to church and the Company publish official annoucement to employees

Closed. Bus has supplied by Company to drop and pick the employees up to church.



employee.

25 Major 6.9 RSPO TSS The Company already has a gender committee that the board of management chaired by Dominica Paunia when ascertaining in the field against the sprayer, they did not have an understanding of what are the criteria/parameters of sexual harassment.

Employee has understood the example of sexual harassment

Expand employees undertanding about criteria of sexual harassment by Poster and Sosialization.

Closed. Material, present list, and evaluation has been conducted.

26 Minor 6.10.3

RSPO TSS The Company cooperated with 5 cooperatives : 1. KUD Subur Makmur, 2. KUD 3. Bukit Selendang Jaya, 4. Koptan Budhi Asih, 5. Kopbun Mitra Sejahtera. The Company did not have SPK related to the cooperation with five other co-operatives. Generally, all SPK did not include a payment agreement, the provisions of penalty / sorting. In SOP Sorting FFB (LAB/BSA/SHMM/13SOP) found a discrepancy on the provision of penalties for example for a long stalk in the SOP which stated that stalk <2 cm hit penalty while government provision stated that stalk above 2.5 cm will expose to penalty.

Not all Cooperation/WKAK has the work agreement because it still part of KUD Subur Makmur

5. The Company has made the corrective action by revising all Contract agreements with all Cooperatives. The corrective action made such as :

- The sortation methods will be refer to Government Regulation No. 14/Permentan/OT.140/2013.

- The sortation process will be witnessed by all parties (company and KUD) and

Observation



sortation form will be signed by both parties

- The price of FFB will be referred to local Government regulation (West Kalimantan)

- The payment will be conducted every month, latest 19 days after closed book/upon the completion of invoice by supplier.

- The methods in handling of complaints with deliberation and consensus

6. The company has made the corrective action by revising the procedure No.Lab/PSA/SHMM/SOP SORTASI TBS. The SOP has set up the methods



of sortation, pilanty and price system.

27 Major 6.4.3 RSPO TSS Subdistrict Head received

reports of complaints from

some of the villagers

around the estates PT

Poliplant who claim that

their land is used by the

company and was not

received compensation.

The parties who filed the

complaint are:

1. Madin, Air Upas village

residents, said the land

has not been

compensated by

hundreds of hectares

wide.

2. Cicilia Ucut, claimed to

have area of 2 Ha

located around the office

of previous PT. Poliplant,

has not been

compensated by the

company.

3. Sanar, claimed to have a land area of 40 Ha located around the office of previous PT. Poliplant

All areas

claimed by

claimants are

within PT.

Poliplant HGU

consession.

PT. Poliplant

HGU was

issued by the

National Land

Agency No:

139/HGU/BPN/

1997 in

Ketapang

District, West

Kalimantan

Province

covering of

4,004.5 Ha

with a validity

period for 35

years untill

February 19,

2034.

Company has

proper SOP to

Observation, implementation will be seen in the next surveillance



has not been compensated by the company.

handle all land

claim and

acquisition

process: SOP

Pembebasan

Lahan NO:

LCP/PPG/HU

MAS/01/SOP

last revision 13

Jan 2016.