pt mutuagung lestari sustainable palm oil certification ... · pdf filecompany name pt...

PT MUTUAGUNG LESTARI

Sustainable Palm Oil Certification Main-Assessment Report

Company Name : MINAMAS Plantation – SIME DARBY Group

: PT BINA SAINS CEMERLANG

Nationality : Indonesia

Location : Musi Rawas District, South Sumatera Province

Code of Certificate : -

Certificate issued date : -

Expired Date : -

Date of

Assessment

Date of Finalization

Report

Auditor PT Mutuagung Lestari

Checked by Approved

by

PA 07-12/03/2010 17/07/2010 Deni A. Novendi; Aryo Gustomo Taufik Margani

Tony Arifiarachman

MA 22-27/11/2010 01/05/2011

Aryo Gustomo; Pudji

Mulyono; Muardi Marwas; M. Eko Santoso

Taufik Margani Tony

Arifiarachman

S1

S2

S3

S4

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

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

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

MUTU Certification • Approved by RSPO Secretariat on June 2008

Submitted to

RSPO on:

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

on:

23/07/2011 24/07/2012 04/09/2012 05/09/2012

LIST OF CONTENT

Page

Figure

1 Location Map of PT Bina Sains Cemerlang 1

2 Area Statement of PT Bina Sains Cemerlang 2

1.0 Certification Scope

1.1 National Interpretation Used 3

1.2 Organization Information 3

1.3 Assessment Type 3

1.4 Locations of estate, mill and area statement 3

1.5 Description of Land Use 4

1.6 Cycle and Planting year 4

1.7 Approximate Tonnage Certified 4

1.8 Other certificate 5

1.9 Time-Bound Plan for other Management Units 5

2.0 Assessment Process

2.1 Certification Body 6

2.2 Lead Auditor and Team Auditor 6

2.3 Assessment Methodology, progress and Field Visits 7

2.4 Public Consultation and List of Stakeholders Contacted 11

2.5 Determining Next Visit 12

3.0 Assessment Finding 14

3.1 Summary of Non-Conformances, Corrective Action Requirements, and Observations on Pre Assessment

14

3.2 Summary of Non-Conformances, Corrective Action Requirements, and Observations on Main Assessment

23

3.3 Issues raised from public consultation, Organization Response and Auditor Response 35

4.0 Certified Organization’s Acknowledgment of Internal Responsibility 47

4.1 Formal Signing of Assessment Finding 47

Annex

1 Checklist of Main Assessment Result of PT Bina Sains Cemerlang 48

2 Stakeholders contacted list 122

3 Glossary 123

Prepared by Mutuagung Lestari for Bina Sains Cemerlang Page 1 of 123

Figure 1. Location Map of PT Bina Sains Cemerlang


Figure 2. Area Statement of PT Bina Sains Cemerlang


1.0 Scope of Certification

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

1.2 Organization Information

1.2.1 Company Name MINAMAS Plantation - SIME DARBY Group

1.2.2 Contact Person Mohamad Pirabaharan

1.2.3 Company Address The Plaza Office Tower, 36th Floor, M.H. Thamrin Street Kav. 28-30, Jakarta 10350

1.2.4 Phone +62-21-29926000

1.2.5 Fax +62-21-29922686

1.2.6 E-mail [email protected]

1.2.7 Website www.simedarby.com

1.2.8 Company Status Private

1.2.9 Certification Information Completed by Management Representative

Mohamad Pirabaharan (Head of PSQM Minamas Indonesia)

1.2.10 RSPO Member Registered September, 8th 2004

1.2.11 Number of employees 1,098

1.2.12 Number of contractors -

S

1.3 Type of Assessment

1.3.1 Scope Mill and Estate

1.3.2 Type of Certificate Single

1.3.3 Name of company covered by certificate

PT Bina Sains Cemerlang

1.3.4 Numbers of Management Unit 1 Mill (Sungai Pinang Mill) which FFB supplied from 2 estates - Sungai Pinang Estate (SPE) and Bukit Pinang Estate (BPE).

1.4 Locations of Estates, Mill and Area Statement

1.4.1 Bukit Pinang Estate

Latitude 2° 57’ 329” – 3° 02’ 03” S

Longitude 103° 23’ 31” – 103° 25’ 44” E

Sungai Pinang Estate

Latitude 2° 55’ 59” – 3° 01’ 03” S

Longitude 103° 19’ 49” – 103° 25’ 44” E

1.4.2 Mill

1.4.2.1 Latitude 2O 59’ 8” South

Longitude 103O 24’ 21” East

1.4.3 Maps Figures 1 and 2

1.4.4 Nation Indonesia

http://www.simedarby.com/


1.4.5 Region South East Asia

1.4.6 Village/Sub-District/District/Province Sungai Pinang, Anyar, Semangus Lama, Semangus Baru and Muara Lengas/Muara Lakitan/Musi Rawas/Sumatera Selatan

1.4.7 Land ownership

Private 0 Ha

State 6,821 Ha*

Community - Ha

* Based on HGU Certificate 17/HGU/BPN/1999 There are 308 ha on HGU Process application to National Land Agency but this is not included in the 6,821 ha

1.5 Land Use

1.5.1 Total Area 6,821 Ha

1.5.2 Mature Area 6,355.8 Ha

1.5.3 Immature Area 140.0 Ha

1.5.4 Other Uses 237.4 Ha

1.5.5 Land Clearing - Ha

1.5.6 Occupation 83.5 Ha

1.5.7 High Conservation Value 877.9 Ha

1.5.7 Type of Product FFB, CPO, PK

1.5.7 Yield (2005-2009) 17.43 tonnes/ha/year

1.5.8 Actual Production (2010) 17.91 tonnes/ha/year

1.6 Cycle and Planting year

1.6.1 Planting Year

Planting Year Area (ha) Age

1991 1,020.33 20

1992 1,016.94 19

1993 1,198.90 18

1994 448.78 17

1995 51.51 16

1996 765.25 15

1997 324.23 14

1998 1,059.40 13

2000 275.70 11

2005 194.73 6

2009 58.00 2

2010 81.98 1

Total 6,495.75

Simple Average of Planting Year 16

1.6.2 Replanting area after November 2005 - Ha

1.6.3 New planting area after November 2005

139.98 Ha

1.6.4 Harvesting cycle 7-10 Days


1.7 Approximate tonnage certified

Oil Extraction Rate 23.61 %

Kernel Extraction Rate 4.99 %

Fresh Fruit Bunch 138,009 tonnes/year

Crude Palm Oil 32,546 tonnes/year

Palm Kernel 6,900 tonnes/year

1.8 Other Certifications held

1.8.1 ISO 9001:2008/ISO 14001: 2004 None

1.8.2 OHSAS 18001:2007 None

1.8.3 HACCP None

1.8.4 Others None

s

1.9 Time Bound Plan for SIME DARBY Plantation

1.9.1 Time-Bound Plan for certification of other Management Units of Sime Darby Plantation Sdn Bhd

Sime Darby has a time-bound plan to certify all its palm oil production units. The plan is given below and is considered sufficiently challenging to be accepted. Progress made on the plan will be monitored on regular annual visits.

Sime Darby has 22 management units in Indonesia, of which 18 are already certified. Four already audited and awaiting approvals by RSPO.

Certification Status as at November 2010

Number of Strategic Operating Units (SOUs)

Remark/Details

Malaysia Indonesia

Certified 33 18 Certified until December 2011

EB Review 6 2 Awaiting approvals by RSPO

Audited 0 2 3rd party audit or external audit

completed on July 2011.

Total Units 39 22


2.0 ASSESSMENT PROCESS

2.1 Certification Body

PT Mutuagung Lestari

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

Phone +62-21-8740202

Fax +62-21-87740745/46

Website: www.mutucertification.com

Email : [email protected]

2.2 Lead Auditor and Auditor Team

2.2.1 Assessment Team

The Assessment Team are:

PA 1) Deni A. Novendi (Lead auditor). Bachelor of Forestry Science, majoring in Conservation of Natural Resources. Specialist in the Ecology and Sociology. He was involved in a socio-economic study of society activity Daerah Aliran Sungai (DAS)

Citanduy-Cisanggarung in Ciamis District- East Java; and has 13 years’ experience in Planning and Forest Conservation on Forest Utilization Right in Indonesia. Since 2003, he has been working for Independent Certification Bodies as Auditor Certification of Sustainable Forest Management system (FSC and LEI system), Chain of Custody, ISO 9001, and RSPO. He has conducted several audits for each of these certification systems. In the pre-assessment, he assessed on the legal, social and environmental aspects.

2) Aryo Gustomo (Auditor); Bachelor of Agricultural Science majoring in Agronomy, Specialist in Oil Palm Plantation. He had worked in one of the oil palm seed producers in Malaysia as a Plant Breeder / Agronomist; and as Field Assistant in an oil palm plantation company in Indonesia. Currently, he works with independent certification bodies as an auditor. His training includes: Lead Auditor for ISO 14001, Identification and Management of HCV Area, Awareness ISO 9001, and Lead Auditor of RSPO. He has done several assessments for ISO 9001 certification as a technical expert, and RSPO certification as an auditor. In the pre-assessment, he was responsible for the environment, agronomic practices and occupational health and safety.

MA 1) Aryo Gustomo (Lead auditor). Bachelor of Agricultural Science majoring in Agronomy. Specialist in Oil Palm Plantation. He worked with an oil palm seed producer in Malaysia as a Plant Breeder / Agronomist, and also as a Field Assistant in an oil palm plantation company in Indonesia. Currently, he works with independent certification bodies as an auditor and has done several audits for RSPO certification - 14 pre-assessments, one trial audit of scheme smallholders and 3 main assessments as Lead Auditor. In the main assessment, he was responsible for best practices, environment and safety practices.

2) Pudji Muljono (Auditor); Bachelor of Agricultural Science, majoring in Pests and Plant Diseases; Masters in Library Science; and Doctorate in Education Technology. He has lectured in Archive Management, Social Research Methods, Social Psychology and Sociology Public in an Indonesian state university; as well as being on the Expert Panel II Social Sector Programme on Sustainable Plantation Forest Management Certification. His training includes: Assessor Training in Social Affairs for Sustainable Production of Forest

http://www.mutucertification.com/

mailto:[email protected]


Certification, Library Management at JIS Jakarta, and Training of Gradual Certification process. He has participated in several assessments in Sustainable Plantation Forest Management Certification, PHPL and PHPT, and has also been involved in the Social Audit System Development of the Ministry of Social Affairs. In the main assessment, he focussed on the social aspects.

3) Muardi Marwas (Auditor); Bachelor of Agricultural Science, majoring in Agronomy and Horticulture sciences. He has been involved in several RSPO audits as an observer and trainee auditor. Currently, he works with an independent certification body as an auditor responsible for best practices, work safety and workers’ welfare.

4) Marsudi Eko Santoso (Observer); Bachelor of Agriculture Science, majoring in Agro-technology science. Currently, he works with an independent certification body as an auditor.

The Curriculum Vitae (CV) of members of the Assessment Team are available in the Office of PT. Mutuagung Lestari.

2.3 Assessment Methodology, Progress, and Field Visits

2.3.1 Assessment Date

Pre-assessment: 07-12 March 2010

Main Assessment : 22-27 November 2010

2.3.2 Estimated person-days for this assessment

PA 10 work days

MA Number of participating auditors: 4

Number of days for on-site assessment: 4

Number of person-days for on-site assessment: 16

2.3.3 Details of Assessment Process

PA The assessment was conducted in 2 (two) phases: Phase I was a Pre-Assessment (PA) focused on the review document - availability, legality, consistency and substance. Some activities were also observed for concordance between the stated and field practice. Suggestions for improvement were submitted to them, the implementation will be verified in the main assessment. Details of Assessment process.

PA 07 March 2010. Travelling to site

08 March 2010. Opening meeting conducted at the Meeting Room of Bukit Pinang Estate; was attended by Suheri (Assistant Total Quality and Environmental Management), Robert MT (Assistant Mill), Elvian (Head of Administration Sungai Pinang Estate), and some related personal. Then auditors continued reviewed document. Auditors focused on doing a documents review concerning on the legality, environmental management, social management, and best management practices. Auditors are divided into two teams based on the aspects of assessment as follows:

Team 1 (Deni – Assessed on social and legal aspects); reviewed the land tenure and conflict management; securing the area; employment and remuneration; CSR (Corporate Social Responsibility) implementation; and management of stakeholders complaints. Team 2 (Aryo - Assessed on environmental, agronomic practices and working safety); conducted documents review on long-term working plan; design area; soil and water conservation; practice of maintaining and improving soil fertility; the use and control of chemicals; hazardous waste management, and health and safety implementation.


09 March 2010. The team continuing the document review. Based on the results of the study, the team determines the sample sites to be visited on the next day and presented to the BSC management.

10 March 2010. The team visited locations that are considered critical issues related to environmental and social aspects. The team I made visits to areas of conflict and the boundaries of the BSC working area. Team II visited the Mill to verify the implementation of working safety, Hazardous materials and Hazardous waste management’s.

11 March 2010. Closing meeting held at the Meeting Room of Bukit Pinang Estate, attended by Rinno Ferryno (Manager of Environmental Safety and Health), Elvian (Chief Administrative Sungai Pinang Estate), Khosiin (Assistant TQEM), Budi Utomo (Estate Manager of Bukit Pinang), and several other related personnel.

12 March 2010. The team returns to Jakarta.

MA The Main Assessment was done by assessing adherence to the requirements of the National Interpretation: Principles and Criteria (P & C) for Sustainable Palm Oil Production (RSPO INA-NIWG, May 2008), Republic of Indonesia. The assessment was in

three parts: 1) documents review, assess their adequacy and substance; 2) Interviews with stakeholders to obtain more detailed information to cross check findings, and 3) Field visits, Observe directly proper implementation of the RSPO P & C.

Some recommendations for improvement were made to them, the implementation would be considered in recommending the company to be certified as a producer of sustainable palm oil. The information obtained is recorded in the Checklist for PT Mutuagung Lestari and attached in the Main Assessment Report. The audit itinerary completed of assessment process, as follows:

22 November 2010. Travelling to location; Team continuing an opening meeting in the Meeting Room of Sungai Pinang Estate, attended by Bustanudin (Head of SOU 19), Rhino Ferryno (ESH Manager), Nowo Dwi Priyono (Pjs Mill Manager), Robinson (senior Assistant of SPE), Suyatno (General Manager Staff), Suheri (Assistant Total Quality and Environmental Management), Elvian (Head of Administration Sungai Pinang Estate), and several other related personnel. Then team proceeding review documents. Auditors focused on doing a documents review concerning on the legality, documentation of environmental management, social management, and documentation of Estates and Mill practices. Auditors were divided into three teams based on aspects of assessment as follows:

Team 1 (Aryo - Assessed on legal, agronomic practices and working safety) reviewing the document on regulatory compliance; land tenure; soil and water conservation; practices to maintain and improve soil fertility; hazardous waste management and implementation of working safety; identification and management of HCV; planning and continuous improvement efforts. Team 2 (Pudji – Assessed on Social Aspect) conducted review document the commitment of transparency; land tenure; social impacts of the company; communications and stakeholder consultation; settlement of complaints and dissatisfaction; CSR; estate planning and continuous improvement efforts. Team 3 (Muardi and Eko - Assessed on the best practices and workers welfare) reviewed economic feasibility documents, best agronomic practices; integrated pest management; agro-chemical use; training of the workers; employee wages; labour union; children protection; gender policy; and continuous improvement efforts.


23 November 2010. Public consultation with stakeholder. Auditor team was divided into two teams, team I (Aryo and Eko) was conducting stakeholders consultations with the Governments and NGOs at the Abadi Hotel, Lubuk Linggau, South Sumatra; while the team II (Muardi and Pudji) conducted stakeholders consultations with local community, labour unions, and representatives of local government (district and village) held in Meeting Room of Sungai Pinang Estate. Public consultation was carried out in parallel from early morning until noon. On the afternoon, the audit teams discuss the results of public consultation meetings and then the auditor team verifies to the company regarding positive and negative issues that appears during the public consultation meetings.

24 November 2010. Documentation review. Auditor team fully one day focused on documents review concerning the legality of the company, documentation of environmental management, social management, and documentation of best practices on Sungai Pinang Estate meeting room; in the afternoon the audit team communicated to the BSC management regarding determining the location that will be check on the next day.

25 November 2010. . The team visited locations that are considered critical issues related to best practices, environmental and social issues. The auditor team was divided into two teams; where Team I (Pudji and Eko) visits to conflict area and the boundaries of the working area, district offices and village heads around the BSC area. While Team II visited Estates and mill to verify the implementation on working safety, hazardous materials and hazardous waste management, observation on slopes area, spraying activities, fertilizing and harvesting, the management of HCV areas, land application practices, and workers medical checks.

26 November 2010. Closing meeting held at the Meeting Room of Bukit Pinang Estate, attended by Bustanudin (Chairman SOU 19), Rhino Feryno (ESH Manager), Nowo Dwi Priyono (Pjs Mill Manager), Robinson (Senior Assistant SPE), Suyatno (Staff General Manager), Suheri (Assistant Total Quality and Environmental Management), Elvian (Chief of Administrative Sungai Pinang Estate), and several other related personnel.

27 November 2010. Team returned to Jakarta


2.3.4 Sample Location of Assessment

PA Sample Location on Pre Assessment:

Location – BPE Office, is the central document storage. Auditors reviews the documents related to employment, occupational safety and health, land conflict resolution, social management, workers training, long-term corporate plans, operational procedures, environmental monitoring, monitoring records of IPM, fertilizing, and spraying as well as production data.

Location 2 – SPE Office. Interview with Head of Administration (Elvian) and Senior Assistant Manager (Irwansyah) related to land tenure and conflict resolution processes.

Location 3 - Block C 43, 44, 45 SPE. Observation of marking the boundaries and ex-conflict areas since 2008

Location 4 - Block K 46, 47 SPE. Observations on occupied area by Jamani which are in the process of settlement through legal approach.

Location 5 - Block K 46, 47 SPE. Observation on estate boundaries with oil palm plantations owned within neighbourhood company (PT London Sumatra plasma scheme).

Location 6 - Sungai Pinang POM. Observation on hazardous materials storage, warehouse and diesel tank; Assessing the implementation of working safety and environmental management practices within mill activities.

MA Sample Location on Main Assessment:

Location 1 - Anyar Village. Observations regarding the circumstances complained by the community drainage for causing flooding when the rainy season.

Location 2 - Block J. Observation of new planting areas.

Location 3 - Block L. Observations regarding the presence of boundary poles of BSC working area near the Pinang river.

Location 4 – Sub district Office of Muara Lakitan. Interviews head of sub district regarding land conflict settlement process and program CD / CSR for the local community.

Location 5 - The house of former head of Anyar village. Interview about land conflict resolution process that has ever happened in PT BSC area.

Location 6 - SPE Housing. Observations regarding housing facilities and clean water facilities for employees and ways of handling complaints from employees about the facilities provided.

Location 7 - Landfill Trash SPE. Observations on the location and circumstances of Final Disposal of household waste that comes from employees of the SPE.

Location 8 - Block F8 SPE. Observation of the existence of land occupation in the PT BSC.

Location 9 - Blok C13. Observation of the presence of slopes area.

Location 10 - SPE / BPE. Observations and interviews with several workers regarding activities of spraying, fertilizing and harvesting.

Location 11 - Sungai Pinang. Observations concerning the existence and management of HCV area (HCV 1.1; HCV 4.1 and HCV 5).

Location 12 - Block D7 and E8. Observations regarding the existence and management HCV areas 1.2; and HCV 1.3

Location 13 - Block F18. Observations regarding the existence and management of


HCV 6 areas.

Location 14 – Workshop and Warehouse. Observations regarding the management of hazardous waste (waste oil, used oil filter, used pesticide container, etc.) derived from workshop and estate.

Location 15 - SPE. Observations on Land Application area.

Location 16 - Central Clinic BSC. Observation of the medical checks programs for employees.

Location 17 – Sungai Pinang POM. Observations of the hazardous waste and management, FFB processing, POME methods, and the implementation of occupationally health and safety.

2.4 Public consultation and list the parties who contacted

2.4.1 Summary of public consultation process

Public consultation with stakeholders was carried out within 3 methods: 1) Public Announcement on the RSPO website. 2) Sending invitation letter to stakeholders in order to provide comments and feedback from related parties. 3) The public consultation meetings with stakeholders were conducted parallel in two places on November 23, 2010 where the locations are at Abadi Hotel, Lubuk Linggau and at the Meeting Room Sungai Pinang Estate. There are 55 parties contacted to provide input information.

2.4.2 List of stakeholders contacted

See Attachment 2

2.4.3 Summary of issues arising from the public consultation and auditor responds.

2.4.3.1 Positive Issue

Some positive issues received from the stakeholders related to the performance of PT BSC as follows:

The local communities and the companies have been agreed regarding boundaries.

The relationship between company with the contractor are running well. The company has build and involved in public health services. BSC has involved in a medical of mass circumcision for the local communities. Local people find it helpful by PT BSC.

Communications between local government and BSC has been well established. local people were helped with the road made by the company. The liquid waste testing already performed every 6 months. BSC already have a special doctor who has a permit to carry out workers medical

checks.

The local governments are very welcome at the presence of investors, including PT BSC.

BSC has regularly submitted the labour report. PT BSC already have work agreements (PKB). Wages are in accordance with provincial minimum salary.

Monthly employment report on time. CSR program is available.

2.4.3.2 Negative Issue

Negative issues that appears as follows:


There is a puddle in the ditch through 1 km near the crossing at the Anyar village. Compensation in 2008 has not been clear where there are some landowners did

not get a proper reimbursement, while occupiers were received land compensation process with no participatory ways.

Local people judged PT BSC are too slow to shuttle workers and they do not have a plasma scheme.

In some cases decision was made unilaterally without consultation to all. The lack of responses to requests from the stakeholders.

Sungai Pinang POM does not receive the FFB from the local community. The road conditions within estates area are less maintenance thus inhibiting the

transport of cargo for the locals. CSR programs are still a charity, not lead to community empowerment program. Community asked why the company did not develop a plasma scheme.

The riparian area of the river is still planted with palm oil. Report of Environmental monitoring plan are often delayed to submitted to

related institution. Empty fruit bunch application is caused flies into the residential community. Inadequate waste management.

The capacity of the waste pond incompatible with volume produced of waste water.

The use of PPE for the workers are not discipline. Physical inspection of water has been well established but does not include

inspection of bacteriology test. Medical checks of workers have done routinely but did not cover in detail such as

Inspection of pesticides in the blood on the sprayer employees.

According Act 25 of 2007 regarding concerning investment. The company has not done the LKPM (Investment Progress Report) conducted once every 6 months

The Company has not provided the requested company profile to Investment Coordinating Board, Musi rawas District.

BSC has not made a report as required in Keppres 4 in 1980. BSC has labour union and Biparted institutions but have not reported to the

Labour Department in accordance with Act 13 of 2003. The Company has not consistently did works accident report maximum of 2x24-

hour.

2.4.3.3 Other issues

Do not exist

2.5 Determination of Next Visit

The time of Surveillance visit would be determine after the report has been approved by the RSPO secretariat and/or not later than 12 months after certificate issued.


3.0. Assessment Findings 3.1. Details of Non-conformance, Corrective Action, and Observation on Pre Assessment

CAR No.

Ref Std Non-conformance Grade Requests for Corrective action

Time Limit Observation and Date

Status Closed Date

2010.01 1.1; 1.2; 6.2; 6.3

The mechanism of transparency and communication - The organization had some type of information that can be published, including legal documents (Certificate of Land Use Rights of 1999), environmental Revision Document of Environmental Management Plan/ Environmental Monitoring Plan that has been approved by the Head of Musi Rawas District), social activities in the form of the company's contribution to the surrounding community, and health and safety programs in the form of management policy of Occupational Health and Safety (OHS). However, there is no enough evidence that the information is accessible to the public.

NC The organization must provide an open mechanism that enables communication, consultation, and complaints between growers and / or mills with local communities, and other affected groups or stakeholders. The mechanism must determine the retention time of the record based on its interests.

Main Assessment

See observation results and details of Main Assessment non-conformance

Closed 26/11/2011

2010.02 2.1; 4.4; 5.3; 5.6

The fulfilment of legal requirements - There is some evidence of implementations that the organization has sought to comply the requirements of applicable laws and amendments related to the land used, remuneration and provision of social security to workers, the company

NC Organizations must provide a list of applicable regulations and legal requirements that must be complied and also the evaluation of fulfilment. Such as, submitting regular reports to the relevant institution in accordance

Main Assessment


Closed 26/11/2011


CAR No.



Status Closed Date

has documents of environmental management and monitoring plans, and best plantation practices. However, the organization has not been able to show the documents of information on all legal requirements that must be complied by plantation companies and implementation of mechanisms evaluation.

with Act 18 of 2004 on Plantation; Routine reporting of liquid waste monitoring in accordance with Article 5 Decree of Environmental Minister 29 of 2009, Implementing job training in accordance with Article 11 of Act 13 of 2003 concerning employment; Performing delineation of protected areas according to the provisions of Presidential Decree 32 of 1990.

2010.03 2.2 Boundary pole maintenance - Organization has been able to demonstrate documents of land tenure in Land Use Rights Certificate 17/HGU/BPN/99 dated February 29, 1999 for the area of 6,513 ha; The company could show the boundary demarcation on the field area in trench as wide as 4 meters. However, boundary pole conditions at the site are not well maintained.

NC The organization shall provide boundary maintenance program periodically.

Main Assessment


Closed, Published

Minor-

2010.05

26/11/2011


CAR No.



Status Closed Date

2010.04 2.3 The existence of traditional rights – The organization has conducted Social Impact Assessment of PT BSC, but it has not a clear reference to determine whether there is the ownership of traditional rights in the work area.

CFA It is advisable to ensure whether there is ownership of traditional rights on the land in accordance with legal reference.

Main Assessment


Closed 26/11/2011

2010.05 4.1 Documentation and implementation of the procedures - Organization has documented, implemented, and monitored operational procedures of estates and mills, but Mill’s SOP has not been ratified, as well as insufficient evidence of any follow-up of evaluation of the inspection or internal audit.

CFA It is advisable to validate the mill operational procedures, and it should be considered to make a follow-up of evaluation on the internal audit.

Main Assessment

See observation

results and details

of Main

Assessment non-

conformance

Closed 26/11/2011

2010.06 4.2 Analysis of soil and leaf – The organization has not been able to show the results of soil and leaf analysis as basis to make efforts in maintaining and improving soil fertility.

NC The organization shall provide results of soil and leaf analysis as a basis to make an effort in maintaining and improving soil fertility.

Main Assessment

See observation

results and details

of Main

Assessment non-

conformance

Closed, Published Minor-2010.08

26/11/2011


CAR No.



Status Closed Date

2010.07 4.3 7.4

Map of marginal land – The company has not been able to provide marginal land map and there is no sufficient evidence of management strategies of marginal land and other critical lands as efforts to minimize and control erosion and soil degradation.

NC The organization shall provide marginal land map with adequate scale as a basis to minimize and control erosion and soil degradation.

Main Assessment

See observation

results and details

of Main

Assessment non-

conformance

Closed 26/11/2011

2010.08 4.5 IPM Document– The company has implemented and developed the Integrated Pest Management biologically and reduces the use of chemicals, but some of the documentation associated with the IPM is not yet available. For example: beneficial plants planting program, rat monitoring records, IPM training, and pesticide toxicity monitoring records.

CFA The organization is advised to document all IPM activities including trainings.

Main Assessment

See observation

results and details

of Main

Assessment non-

conformance

Closed 26/11/2011

2010.09 4.6; 5.3 Hazardous waste management – the company has used agricultural chemicals which not endanger health and the environment, and it has performed the management of hazardous waste. It is not yet available hazardous waste management procedures in accordance with the existing reference in the product label and applicable regulations.

NC The organization must consistently use the chemicals and manage hazardous waste in an environmentally responsible manner, and makes hazardous waste management procedures in accordance with the existing reference in the product label and applicable regulations.

Main Assessment

See observation

results and details

of Main

Assessment non-

conformance

Closed 26/11/2011


CAR No.



Status Closed Date

2010.10 4.7 Occupational Health and Safety program documentation – The company has a occupational health and safety program policy, established the committee in charge of OHS, provided accident insurance, and safety equipment. However, there is no enough evidence that the occupational health and safety programs in the form of training programs, emergency response procedures, and emergency response simulations have been available, documented and distributed.

NC The organization must plan, implement, and documented the OHS program completely.

Main Assessment

See observation

results and details

of Main

Assessment non-

conformance

Closed 26/11/2011

2010.11 4.8 Training – There was no enough evidence that staff, workers, farmers and contractors had been trained adequately.

NC The organization must provide continuous training programs for staffs, workers and farmers, according to the competence of each position and those are well documented, including the training of the RSPO standard.

Main Assessment

See observation

results and details

of Main

Assessment non-

conformance

Closed 26/11/2011

2010.12 5.1; 8.1 Documents Report of Environmental Management Plan / Environmental Monitoring Plan – The organization has not consistently made reports of Environmental Management Plan/Environmental Monitoring Plan and reports it to

NC The organization must regularly and consistently made statements of Environmental Management Plan / Environmental Monitoring Plan and report it to relevant agencies.

Main Assessment

See observation

results and details

of Main

Assessment non-

conformance

Open, with Minor-2010.13

Before surveillance


CAR No.



Status Closed Date

relevant agencies. For example: Reports of Environmental Management Plan / Environmental Monitoring Plan period of Semester I year 2008 and 2009 were not available.

2010.13 5.2 HCV area management plan - The company has identified protected, rare or endangered species and habitats of high conservation value. There were no measures taken to protect rare or endangered species and their habitats in accordance with relevant regulations, and to appoint special officers who are trained to monitor these activities.

NC Organizations must take method to protect rare or endangered species and their habitats in accordance with relevant regulations, and appoint special officers who are trained to monitor these activities.

Main Assessment

See observation

results and details

of Main

Assessment non-

conformance

Closed 26/11/2011

2010.14 5.4 Records of monitoring of renewable energy - The company has been monitoring the fossil fuels for operational used but record’s has not been provided.

NC The organization must provide records of monitoring the use of renewable energy and conduct its efficiency analysis

Main Assessment

See observation

results and details

of Main

Assessment non-

conformance

Closed 26/11/2011


CAR No.



Status Closed Date

2010.15 6.1 Social impact management programs - The company has conducted Social Impact Assessment of PT BSC in January 2010, including the identification of the positive and negative impacts caused by the management of oil palm estates and mill. However, the results of studies have not been followed up with the preparation of the impact management and monitoring program in accordance with the recommendations

NC The organization shall develop a negative social impact management program refers to the results of social impact assessment that has been done.

Main Assessment

See observation

results and details

of Main

Assessment non-

conformance

Open, Changed with Minor-2010.17

2010.16 6.2 List of stakeholders – The organization has not list of stakeholders who have an interaction in PT BSC.

NC The organization shall provide list of stakeholders from local and national level.

Main Assessment

See observation

results and details

of Main

Assessment non-

conformance

Closed 26/11/2011


CAR No.



Status Closed Date

2010.17 6.4; 2.2 Records of land compensation agreement - The organization has resolved a number of land claims cases that occurred within the work area. However, not all the documentation process of land conflicts resolution can be shown (example: for documents of evidence of land conflicts settlement in the blocks 43, 44, and 45 in SPE), and conflict resolution procedures have not included the calculation and compensation involving community representatives and agencies related.

CFA The organization shall provide records of land conflict resolution process is completely, and disseminate conflict resolution procedures to the parties.

Main Assessment

See observation

results and details

of Main

Assessment non-

conformance

Closed 26/11/2011

2010.18 6.5; 6.6 Company Regulation - There are 2 types of Collective Labour Agreement, namely Collective Labour Agreement between Sumatra Plantation Companies Cooperation Agency (BKS-PPS) with the Central Board of the Federation of Agriculture and Plantation Workers, Indonesian Labour Union in 2008 that has been set by the Director General of Assistance of Industrial Relations and Labour and Social Security KEP.75/PHIJSK/PKKAD/2008 dated July 10, 2008 - validity period of July 10, 2008 to July 9, 2010, applicable to the workers level: and also collective labour

CFA The company is advised to revised collective labour agreements on staff level up and record the process of meetings during the drafting.

Main Assessment

See observation

results and details

of Main

Assessment non-

conformance

Closed 26/11/2011


CAR No.



Status Closed Date

agreements between the company and employee representatives on January 25, 2007 for staff and managerial where the validity period has been expired (the validity period of 2007-2009).

2010.19 6.7 Consistency of implementation PKB - Based on the Collective Labour Agreement of 2007-2009, Article 16 paragraph 1.2.2: the organization defined the minimum age of employees is 18 years old at the time of admission. However, the implementation has not been consistent, where one of the announcements for Harvesting Workers (note: Applications were submitted not later than April 10, 2007) stated the age requirements of 17-35 years.

NC The organization shall implement company regulations consistently in accordance with Act 13 of 2003 about Minimum age requirement

Main Assessment

See observation

results and details

of Main

Assessment non-

conformance

Closed 26/11/2011

2010.20 6.8 Discrimination – Collective Labour Agreement Article 16 (2007-2009): Recruitment of Workers, paragraph 1.2 general requirements that must be met in the recruitment of candidates clearly did not mention races, castes, religion, disability, gender, sex, union membership, and political affiliation. However, the terms should include "Citizen of Indonesia."

NC The organization shall review the policy of nationality requirements in employee recruitments.

Main Assessment

See observation

results and details

of Main

Assessment non-

conformance

Closed 26/11/2011


CAR No.



Status Closed Date

2010.21 6.11 Company contributions - There are some verbal information’s related to the company's contribution in surrounding community, Such as: provision of bulls for Eid al-Adha celebration, the construction of religious facilities, and road improvements in Anyar Village. However, there is no enough evidence that it has been documented and can be demonstrated.

CFA The organization must make records (recapitulation) of the company's contribution to local development at least the following information: the type of contribution, purpose, recipient, the value.

Main Assessment

See observation

results and details

of Main

Assessment non-

conformance

Closed, Change with CFA-2010.201

26/11/2011

2010.22 7 Development of new areas - There are plans of development of new area covering 308 hectares, which is in the process to obtain Land Use Rights since 2008.

CFA It is advisable to provide the documents - the following documents: EIA, Land Survey, Identification of HCV management plan, and mechanisms for land compensation.

Main Assessment

See observation

results and details

of Main

Assessment non-

conformance

Open, Change with Minor-2011.12

Before surveillance


3.2 Summary of Non-conformance, Corrective Action Request and Observation in Main Assessment.

CAR No. Ref Std Non-conformance Grade Requests for Corrective action


Status Closed Date

2010.01 Major 1.1.3 Major 1.2.2

The retention time of the document - The organization has determined the retention time of the document based on the type of document that is owned but there is no retention and disposition of record. Retention time make the document more controlled.

CFA It is considering that organization make retention and disposition of record that aims to make the document more controlled.

Surveillance I

2010.02 Major 1.2.1 Environmental documents - environmental documents are available as EIA and Environmental Management Plan / Environmental Monitoring Plan period I year 2010 and period II year 2009; the company has not been able to show the Environmental Management Plan / Environmental Monitoring Plan reports of previous period.

Minor Organizations must be able to provide all documents that can be accessed by the public fully, including documents related to the environment.

Surveillance I

2010.03 Major 2.1.1 Evidence of compliance with regulations – It is found evidence that some of the company's operations do not meet the requirements of applicable and related law, for example: the reporting of Environmental Management Plan / Environmental Monitoring Plan periodically in accordance

Minor The organization must provide evidence of compliance with all legal requirements related to operational of the company.

Surveillance I




Status Closed Date

with the Environmental Ministerial Decree 45 of 2005; OHS license for tractor operators in the estates for example in SPE in accordance with Regulation of Labour Minister 9 of 2010 Articles 3, 4, 5, 11 and 13 regarding the Crane operators; Land Application Permit has not been extended in accordance with Head of Musi Rawas District Decree 128a/KTPS/IV/2007; Hazardous material symbol in storage not complies in accordance with Regulation of Environmental Minister No. 3 year 2008.-.

2010.04 Major 2.2.1 Legal documents of land tenure - The organization has land tenure documents in Land Use Rights certificate 07 of 1999, which covers 6,513 ha. Based on the statement area data owned by PT BSC, the work area reaches 6,821 hectares thus there is still an area of 308 hectares which has not had a clear legal document.

Minor The organization must be able to demonstrate clear legal evidence and follow up the licensing process of the addition of 308 Ha areas that has been submitted to National Land Agency.

Surveillance I




Status Closed Date

Until main assessment the area is still in the process of applying site licenses to the National Land Agency that has been done since 2008; and based on field visits, the audit team found that some of 308 hectares has been planted with oil palm.

2010.05 Major 2.2.2 Legal documents of boundary pole - The organization could show boundary pole and has maintenance it, but the organization could not provide legal document as clear references for the boundary poles.

Minor Organization must be able to show evidence of legal document for boundary poles as a clear reference in land tenure.

Surveillance I

2010.06 Major 2.2.3 Occupation land – It is found evidence that in Land Use Rights areas there is still occupation land by the community (in the name of Zakaria and Kadenan) that have not provided evidence of completion or progress of the resolution received by the parties.

Major The organization must provide evidence of completion or progress of the resolution received by the parties to the occupation case of community in the Land Use Rights area.

Before certificate issued

Verification on 18

April 2011:

BSC can show evidences of the completion of the process and progress of land settlement by all parties (owner of the lands are Zacharias and Kadengan). More land settlement process as follows: 1) On December 3rd and 4th, 2010;

Open (Minor)

Verify on Surveillance I




Status Closed Date

meeting was held which was involved landowners, local governments, and the company representatives. The result of the meeting was community has willing land settlement with compensation. Attendance list is available. 2) On December 9, 2010; both parties visited the location to be settled. The area is a productive rubber and an old rubber plantation. 3) On 15 to 17 December 2010, both parties are willing to settle the land with compensation. The local land owner makes a statement that they are willing to release. The land that has been willing to release names are




Status Closed Date

Nang Ali (54 years old) covering 10 ha, Agus Tiwan (30) covering 15 ha, Nawi (48) covering 10 ha, Dina / Tarigan (62) covering 15 ha, Burlian (52) covering 25 ha, Erwandi (30) covering an area of 4 ha, Ahmad Yani (40) covering 14 ha and Nawawi (41) covering an area of 7 ha. An agreement between both parties available. For Land Case of Jamani located in Block 46/47 have to show proof of authentic 'court' which establishes the disputed land is owned by the company. Auditor considers this corrective action, and will be further verified




Status Closed Date

during subsequent surveillance visit.

2010.07 Minor 2.2.2 Major 6.3.1

Conflict resolution procedures - Conflict resolution mechanisms (Conflict Resolution SOP 007/BSC-PK/I4/2009) owned by the company has not been prepared in a participatory manner by involving the parties.

Minor The organization must provide evidence of the involvement of stakeholders in preparing the conflict resolution mechanisms that have been made.

Surveillance I

2010.08 Minor 4.2.1 A record of soil analysis - soil analysis records owned by PT BSC has not explained the analysis of soil fertility (nutrient content of the soil).

Minor The organization must provide evidence of soil analysis records that explains the soil fertility analysis.

Surveillance I

2010.09 Minor 4.4.1 Records of water quality test – There was evidence of water quality monitoring and records of the quality testing of control wells and river water conducted every six months. But there is no enough evidence that parameters tested are in accordance with quality standards that have been set by the government.

Minor The organization must provide evidence that water quality monitoring results are in accordance with quality standards that have been set by the government.

Surveillance I




Status Closed Date

2010.10 Major 4.6.4 Minor 5.3.1

Hazardous waste storage – It is found evidence that hazardous waste was not stored in storage licensed in accordance with regulations such as Government Regulation 18 of 1999: Used oil and diesel fuel filter (in SPE workshop) including used pesticide packaging produced by the estate.

Minor The company shall keep the hazardous waste in the location licensed in accordance with Government Regulation 18 of 1999.

Surveillance I

2010.11 Major 4.7.2 Minor 6.5.2

Advisory Committee of Occupational Health and Safety (P2K3) - The organization has Advisory Committee of Occupational Health and Safety (P2K3) endorsed by Manpower and Transmigration agency, Musi Rawas and also there have been records of Advisory Committee of Occupational Health and Safety activities such as meetings. But there has not been enough evidence that company has reported the results of Advisory Committee of Occupational Health and Safety activities in accordance with the requirements endorsement letter by the Department of Manpower and Transmigration.

CFA It is advisable that the results of Advisory Committee of Occupational Health and Safety) activities was report in accordance with the requirements endorsement letter by the Agency of Manpower and Transmigration.

Surveillance I




Status Closed Date

There are contracts between company and contractors that not require to comply with man power regulations especially safety and healthy aspect, for example contracts BPE/LKL/IX/0/14 on FFB transportation occupations.

2010.12 Major 5.1.1 Minor5.1.1 Major 6.1.1 Minor 6.1.2 Major 7.1.1 Minor 7.1.1

Environmental and social impact assessment - There is no enough evidence that additional area outside Land Use Rights (308 ha) that are still in the process to obtain location permit is supported by the document of the environmental and social impact assessment results.

Minor The organization shall ensure that additional area outside Land Use Rights (308 ha) are still in the process of location permit is supported by the document of the environmental and social impact assessment results, whenever the EIA documents that have been previously owned are revised.

Surveillance I

2010.13 Major 5.1.2 Minor 6.1.3

Environmental Management Plan / Environmental Monitoring Plan Report – There was no evidence that Environmental Management Plan / Environmental Monitoring Plan reports have been conducted periodically and scheduled. For example Environmental Management Plan / Environmental Monitoring Plan reports to the period before semester II year 2009

Minor The organization must provide evidence that Environmental Management Plan / Environmental Monitoring Plan reports have been done periodically and scheduled.

Surveillance I




Status Closed Date

are not available.

2010.14 Major 5.2.1 HCV Identification – There is no enough evidence that the public hearing process in the identification of HCV that has been done, already involved NGOs and the University as required in High Conservation Value Areas Identification Guide in Indonesia, published by a consortium of HCV Toolkit revision of Indonesia, in June 2008.

Minor Organizations should review the documents of Identification of HCV that have been made by ensuring that the public hearing stage has involved all stakeholders (NGOs and Universities).

Surveillance I

2010.15 Major 5.2.1 Major 7.3.1 Major 7.3.2 Major 7.5.1

HCV Identification– There has been no enough evidence that HCV identification of additional area outside Land Use Rights (308 ha) which included planting areas after November 2005 have been carried out; documents of HCV Identification owned by the company are only within the scope of the Land Use Rights area study boundaries (6,513 Ha).

Minor The organization must provide evidence that HCV identification of additional area outside Land Use Rights (HGU) (308 ha) have been carried out.

Surveillance I




Status Closed Date

2010.16 Minor 5.2.2 HCV Supervisor – The company has approved Yasirman to monitor HCV activity plan, but there has been no evidence that the assigned officer is trained and understands the concept of HCV well.

Minor The organization must provide training and a better understanding about the management of HCV to the supervisory officer who has been appointed.

Surveillance I

2010.17 Minor 6.1.1 Social impacts monitoring and management plans - The company has not involved public participation in developing social impacts monitoring and management plans.

Minor Companies should involve community participation in developing social impacts monitoring and management plans.

Surveillance I

2010.18 Minor 6.2.3 Consultation and communication officer - The company has appointed Ahmad Yani as a special officer to conduct communication and consultation with the community in which the officer is responsible covering the villages not only in surrounding of PT BSC but also other PT under Minamas Plantation.

CFA It is strongly advisable to review the scope of the special officer appointed to conduct communication and consultation with the community to focus on PT BSC area so that the officer will be more effective in carrying out the duties.

Surveillance I




Status Closed Date

2010.19 Minor 6.9.1 Sexual harassment prevention policies - The organization has developed a sexual harassment prevention policy, but the distribution is considered less effective based on interviews with women spray operators who do not understand and know the policy of sexual harassment prevention.

CFA It is advisable that the company socialize the policy of sexual harassment prevention to all workers more effectively.

Surveillance I

2010.20 Minor 6.11.1 CSR Program - CSR programming is still a charity and does not consider the identification of the needs of the community aiming to empower local communities sustainably.

CFA It is advisable that CSR programming considers the identification of the needs of the community sustainably aiming to empower local communities.

Surveillance I

2010.21 Major 7.3.2 Map of new land clearing plan and realization - There is no records of map plan and the realization of land clearing for planting year after November 2005 based on the identification of HCV.

Minor Companies must provide records of map plan and realization of land clearing for planting year after November 2005 based on the identification of HCV.

Surveillance I

2010.22 Major 8.1.1 Minor 8.1.1

Social impact management action plan - The company has a social impact management action plan aiming at reducing the impact that may arise against or suffered by the relevant stakeholders in

CFA It is recommended for the company to monitor the achievement of the target of action plans in accordance with a predefined schedule.

Surveillance I




Status Closed Date

accordance with the specified target date. But monitoring of the achievement of those targets has not been conducted.


3.3 Issues arising from public, auditor finding, and response from Mutuagung

Issues from public Positive/Negative Auditor findings Response from Mutuagung

Head of BPD of Anyar Village

There is puddle in the trench that is 1 km away from the pontoon crossing at Anyar village. There has been puddle for two years when it rains hard. The location is near the workshop. Puddle can become a place for mosquito breeding. They hoped it is immediately repaired if possible permanently.

Negative The company has helped repairing the trench with heavy equipment, but the water still does not flow well.

Considered to be verified on criteria 6.2

CSR programs are available such as IDR 9 million mosques rehabilitation, madrasahs’ (religious school for children) operational costs of IDR 500,000 / month, qurban animal donation of a cow per year (for 3 years), scholarships for 1 (one) high school graduate to continue his study to IPB undergraduate program, however CSR programs but is still considered not enough by the community.

Negative The company has already made the system and provide an opportunity for community to submit proposals for CSR programs in accordance with the policy agreed by the chairman of the company

Explained on criteria 6.11

Compensation in 2008 has not been resolved clearly where there are landowners who have not received the compensation, while the growers have got, and the compensation process was less participatory.

Negative The company has done an inventory and involved the community, village and Muara Lakitan district officials in the process of compensation




Swamp areas called "Payalebar" are overgrown with rattan and screwpine plants which can be sold or made mats as a source of livelihood for local residents.

Positive The company has been delineated these area to HCV 5.


Residents consider that PT BSC is slow handling shuttle of workers and does not have plasma for management of oil palm.

Negative Transportation for workers limited.

Explained on minor indicator 6.5.1

Head of Anyar Village

There are 25% of the residents who become employees in PT BSC

Positive Based on labour data it is found that 54% of the employees are from local residents.


Decision was made unilaterally without consultation. For example there was a case in which an elementary school student took loose oil palm fruit, and then he was processed into the police station and arrested for a half month.

Negative The company has tried to secure the location of oil palm estates by referring to the applicable rules. If there is a theft committed by children or teenagers, security officer will coordinate with village officials and police. Currently oil palm theft cases have been reduced.


Communities and the company have agreed company’s boundaries for example trenches of 4 meters in some areas near the villages e.g. Anyar Village boundaries.

Positive Explained in criteria 2.2



Lack of company responses to public demands, for example in April 2010 the community demanded the improvement of roads but the company response was less satisfactory.

Negative The company has responded the community request to repair the roads by sending grader.


Contractors of Empty bunch transportation of Muara Rengas Village

Relationship between the company and contractors runs well. For example on time payments.

Positive Explained in minor indicator 6.5.2

Sungai Pinang Mill does not accept FFB from community.

Negative There are no agreements of buying FFB from other party.

Explained on major indicator 4.1.2

School superintendent

The company has conducted public health services

Positive Explained on minor indicator 4.7.2

Mass circumcision has been conducted in PT BSC

Positive Company's CSR program, are among others, conducting a mass circumcision in 2006 in schools of PT BSC and in 2008 at the meeting hall of PT BSC


FFB contractor The condition of estate roads are not well-maintained so that it obstructs FFB transportation

Negative The company has road maintenance program of 2010/2011. See indicator Minor 4.3.3.




Head of Muara Lakitan Sub district

Community is supported by the existence of company

Positive Sub district government officials consider that they are supported by the company’s support in implementation of development programs in their areas such as district elections and other development programs.


Communication between the company and government agencies runs well.

Positive The company has established good communication and cooperation with the village and sub district government officials

Explained in criteria 1.1 and 6.2

Head of Sungai Pinang Village

CSR programs are still a grant but it has not lead to community empowerment programs.

Negative In 2010 the company already allocated CSR funds for education programs in colleges but it was limited to only two participants.


It is proposed to hold weekly market. The company welcomes to the proposal if the community can take the advantages optimally. Weekly market development has ever initiated by the company in the plantations and Muara Rengas village but it did not run smoothly because traders do not want to occupy the market due to the many street vendors around the site.


Community is supported by the road constructed by the company.

Positive Explained in criteria 6.11



Village road demonstration problem has been resolved.

Positive The company has fulfilled the demands of community for the improvement of village roads, the improvements in 2010 were performed five times, namely in January, April, May, June and October


Head of Semangus Baru Village

The company has not had a role in community empowerment.

Negative In 2010 the company had allocated CSR funds for education programs in colleges but it was limited only for two participants


Community questioned why the company did not develop plasma pattern

Negative The company in the beginning has been developed for core estates and there is no allocation for plasma estates.

Explained on criteria 6.2 and 6.10

Forest Agency of Musi Rawas District

River side are still planted with oil palm trees.

Negative The company has delineated HCV area including Riparian. These areas do not sprayed and fertilized.

There was planting in river side before 2005. The company has stated these areas to be conservation area. In the buffer zone which is has been planted palm oil marked with yellow sign. No fertilizing and spraying in these areas. The conservation area has established by an installation as wide as 50 m to left and right of the river.



License of the release of forest area according to the data is questionable because there is an area of 320 ha of BSC belongs to the forest conservation area

Negative BSC has been proposed a location permit to related parties since 2008, however it has not been issued until nowadays.


Environmental body of Musi Rawas District

Liquid waste test has been carried out every 6 months.

Positive Explained in minor indicator 4.4.2

Environmental management plan and Environmental Monitoring Plan Reports does not run well.

Negative The company has not routinely reported the RKL/RPL to relevant institution. See NC. Minor.2010.13.


Plantation Agency of Musi Rawas District

The Government will implement Regulation of Agriculture Minister 26 of 2009 and Regulation of Agriculture Minister 07 of 2009 regarding the assessment requirements and assessment guidelines of plantation business

Positive The company will concern regarding the newest regulation.

The regulation put in order about guidelines of plantation business permit (Permentan 26; 2007). The plantation agency shared with us – auditor and also community - about how to implement these regulations. The government except more community and grower has same perception regarding this regulation.



Police Station of Musi Rawas District

Districts Police and the company have a good relationship, for example four police officers are assigned in the area of PT BSC.

Positive In the framework of regional security, the company collaborated with the Musi Rawas district police station to provide security around the company.

Explained on criteria 6.2.2

BSC already has Land Use Rights (HGU) No.17 year 1999 and there is a letter proposing a new land area of 308 ha that is still in the area of provisioning permits of the release of land rights of PT BSC.

Positive An area of 308 ha is located outside Land Use Rights (HGU) No.7 year 1999 covering an area of 6,513 hectares and the social and environmental impacts have not been evaluated according to RPL and RKL document year 2006 which was approved on October 30, 2007 No. 128b/KPTS/IV/2007.


There was a law court case concerning the conflict area of 16.6 ha (claimed by Jamani) that has been decided that the company won the case.

Positive The company has won the case in court and the claimant of land has been sentenced to 10 months by district court of Lubuk Linggau but the company has not obtained the photocopy of the court's decision about it.




Health Agency of Musi Rawas District

Empty bunch application resulted in many flies coming into the residential community

Negative The company has made efforts to address the empty bunch to be oil palm tree fertilizing material in the specified location of the estate area so it does not cause pollution to the surrounding community. Locations of empty bunch applications are far away from residential areas, for example in Block K39, which is about 3 km from the settlement.


Garbage handling is not adequate Negative Based on observations in the Final Garbage Disposal it is demonstrated adequate handling of waste with Final Garbage Disposal in good condition and appropriate.


The capacity of the waste ponds are not in accordance with the volume of waste water production

Negative The company has monitored the pond mill in order not over capacity. There are records covered of the number and area of land application.


Indiscipline Personal Protective Equipment (PPE) use.

Negative Based on the field visit, workers had used helmet, safety shoes and avron.

Explained on indicator 4.7.6

Water physical testing is good enough but it does not include bacteriology testing

Negative The company has analyzed control and community well. The analyzing conducted by environmental agency which covered bacteriology




analyzes.

The company has conducted the fogging, wells and toilets constructions

Positive Company's CSR programs, are such as, conducting mosquito fogging in 2009, while for the construction of wells and toilets has never been done


Medical check up of workers has been done but it has not covered in details such as pesticides screening in the blood of spray workers.

Negative The company has checked up the sprayer on 29 October 2010.

Explained on minor indicators 4.7.2 and 4.6.2

Hapsari Medika Hospital

BSC has had special certified doctors Positive The company has had a special doctor, who is dr. Waluyo (NPA IDI: 220605.000162), certified by a letter of recommendation from the Indonesian Doctors Association endorsed on 24 April 2010 by the Chairman of Indonesian Doctors Association of Lubuk Linggau Branch of Musi Rawas (dr. H.P Asastiansyah, SpOG).


Investment Coordinating Board, Musirawas District

Local Government welcomed investors well including PT BSC

Positive The company is committed to develop the area through the management of oil palm estates and mills.

Explained in indicator 6.11



As per Act no. 25 year 2007 the company has not done LKPM (Investment Progress Report) reporting every 6 months.

Negative The company has not delivered Investment Progress Report every 6 months.


The Company has not provided the company profile requested by BPMPTP

Negative Headquarters of PT BSC company Jakarta has fulfil this demand through centre of BKPM Jakarta based on a receipt dated September 2, 2010, related documents have been submitted on August 12, 2010.

Explained on criteria 1.1 and 6.2

Local government has made a team of CSR, which in the future the whole company including BSC will need to create and communicate CSR program to local government CSR team and it will need to be discussed with local government and communities.

Positive CSR programs are synchronized and facilitated by local government of Musi Rawas. So far the coordination has been conducted by the local government and plantation companies in Musi Rawas district. According to Head of sub district it is planned to make Head of District decree related to the matter.


Transportation and Communication Agency of Musi Rawas District

BSC should contribute to the development and maintenance of public roads between Muara Rengas with Anyer villages.

Positive The company has done street improvements and paving since 2004 regularly every year with a total cost of IDR 1,022,043,012.

Explained on minor indicator 4.3.3 and criteria 6.2



Vehicles Supplier Contractors

The relationship between the company and the contractor runs well. For example on time payments.


Transmigration and Labour Agency of Musi Rawas District

BSC has submitted employment report routinely.

Positive Explained on criteria 2.1

BSC has not done report obligation of job vacancy according to Presidential Decree No. 4 year 1980.

Negative The company has not done report obligation of job vacancy according to Presidential Decree No. 4 year 1980.

Explained in indicator 2.1.1

PT BSC already has Collective Labour Agreement

Positive Explained in major indicator 6.5.2

Employees’ wages are in accordance with provincial minimum wage

Positive Explained in major indicator 6.5.1

BSC already has Indonesian Labour Union and Beparted institutions but the company has not reported those activities to Labour Ministry in accordance with Act No. 13 year 2003.

Negative Employment Reporting to Department of Labour in accordance with Act no. 13 year 2003.

Explained in major 2.1.1

All monthly workers have joined JAMSOSTEK but Labour Agency has not known whether besides the monthly workers already has Employee Social Security (JAMSOSTEK).

Negative BSC has been registered all the workers to JAMSOSTEK including staff and non staff.




JAMSOSTEK Bengkulu Branch office

Monthly labour report submitted on time.

Positive Explained on criteria 2.1

The Company has not consistently reported work accidents in maximum of 2x24 hours.

Negative For the next time, the company will report work accident which can be claim to Jamsostek. There was a template for this report.

BSC has been appointed a person who report to JAMSOSTEK. All accidents to be reported within 48 hours. There is a template of form of report available on site.

Heavy Machinery Supplier Contractors

The company has a good relationship with the contractors.



4.0 ACKNOWLEDGEMENT OF CERTIFIED ORGANISATION'S INTERNAL RESPONSIBILITY

4.1 Official acknowledgement of the assessment findings

The representative of the management of the company being assessed hereby acknowledged the result of the assessment and description in the report in its entirety, including the non conformance findings.

Signed on behalf of:

PT BINA SAINS CEMERLANG PT MUTUAGUNG LESTARI

Head of PSQM Minamas Plantation Lead Auditor

Mohammad Pirabaharan Aryo Gustomo


Annex 1. Checklist of Main-Assessment of RSPO Certification at PT. Bina Sains Cemerlang

Ref. Stand

RESULTS OF MUTU-Certification VERIFICATION STATUS

PRINCIPLE #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.

Major

1.1.1 Records of Information Requests.

PA Records of Information Requests are not yet available. Non-conformance in this indicator is NC-2010.01

X

MA To provide guidance in the making of information requests answer from the stakeholders, which addressed to operational unit, PT. BSC has owned SOP No. 008/BSC-PI/III/2009 Dated on March 4, 2009 regarding Information Requests (RSPO/1.1/PI). The unit in charge of this procedure implementation is Operational Management Unit, Department Heads and Departments related in Minamas Plantation. In addition the company also has: 1. SOP of communication and consultation with communities No. 006/BSC-

KKM/IV/010 dated April 2, 2009; 2. SOP of Public Complaints Handling No.004/BSC-PKK/IV/09 dated on April 2,

2009; 3. SOP of Employee Complaints handling dated on April 2, 2009; 4. SOP of Conflict Resolution No.007/BSC-PK/I4/2009 dated on April 2, 2009; 5. SOP of mechanism and evaluation of the effectiveness of loss of legal and

traditional rights No.009/BSC-PK/IV/2009 dated April 2, 2009.

The company has documented the records of information requests in logbook, among others are information requests book, records of public complaints, Records of Employee Complaints, Records of Government Information and book of complaints for stakeholders. Non-conformance status of NC-2010.01 is declared closed.

√

S1

S2

S3

S4


1.1.2 Records of Responses to Information Requests.

PA Records of Responses to Information requests are not yet available. Non-conformance status in this indicator is NC-2010.01

X

MA In order to ensure the identification, collection, storage, maintenance and destruction of notes or records were performed well and for ease of retrieval, the company already has SOP No. 011/BSC-PC/VIII/10 on records control. All records related to RSPO including Occupational Safety, Health, and environment, which are the results/evidence of RSPO implementation, records on hard disc and electronic media in Minamas Plantation. The company has documented the records of Information requests in logbook, among others are Information requests book, records of public complaints, Records of Employee Complaints, Records of Government Information and book of complaints for stakeholders. Non-conformance status of NC-2010.01 is declared as closed.

√

S1

S2

S3

S4

1.1.3 The records mentioned in 1 and 2 must be maintained for a period of time determined by the company, taking into account their relative importance.

PA There was no evidence that the organization has set the retention time of Information Requests and Responses. Non-conformance in this indicator is NC-2010.01

X

MA The company has set the retention time of records and records destruction, among others: (a) Audit Document/ Assessment: 5 years. (b) The need of Reference: Until there are changes. (c) Law/Government Act: Until there are changes. (d) Costumer Demand: 3 years. (e) The Company’s Policy: Until there are changes. (f) Records of Land Compensation: unlimited. However, the organization is advised to make archival retention time schedule so that the documents owned would be more controlled in their storage. Non-conformance status of NC-2010.01 is declared as closed, but at the time of

main assessment the non-conformance of CFA-2010.01 was published with CFA

category.

X

S1

S2

S3

S4

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.

Major


1.2.1 Information and responses must include any relevant or required documentation, in accordance with applicable national laws, such as:

Legal: Land titles/user rights (Site Permit), Plantation Operation Permit, Land Use Title or other documentation relating to application for Land Use Title in accordance with relevant. Environment: Environmental and Social Impact Assessment and environmental management and monitoring reports Social: Documentation of social activities and community programs. Health and Safety Program. Continuous Improvement Program.

PA The organization has owned several types of Information which can be published including legal document (Land Use Rights Certificate 17/HGU/BPN/99 with an area of 6,513 hectares dated on February 29, 1999. Certificate of Land Rights 07/99 dated on June 12, 1999), Environment Activities (EIA 128.B/Kpts/IV/2006 dated on October 31, 2007 which has been approved by Regional Environmental Impact Management Agency, Musi Rawas District). Social activities in the form of company’s contribution to surrounding community, and Occupational Health and Safety Program in the form of management’s policy regarding Occupational Health and Safety (OHS) and its implementation. However, documented mechanism to ensure the availability of public access to document is not available. Mechanism of public access should include procedures to receive and respond to information requests from the public, including from government and Non Governmental Organizations (NGOs), clear response schedules and establish the retention time of records of information requests and responses based on their interests.

X

Non-conformance in this indicator is NC-2010.01.

MA The company has owned several types of Information which can be published, including: - Legal Document (Land Use Rights Certificate 17/HGU/BPN/99 with an area of

6,513 hectares dated on February 29, 1999; Plantation Business Permit 105/Mentanhut-VII/2000 issued by Directorate General of Plantation, minister of Agriculture and Plantation dated on October 9, 2000).

- Environment (EIA No. 128.B/Kpts/IV/2006 dated on October 31, 2007 approved by Regional Environmental Impact Management Agency of Musi Rawas).

- Social activities in the form of company’s contribution to surrounding community.

- Occupational Health and safety program in the form of management’s policy regarding Occupational Health and Safety (OHS) and its implementation.

- The company has owned the documented SOP (Standard Operational Procedure) to ensure the availability of public access to document. Non-conformance Status of Pre Assessment NC-2010.01 is declared closed.

√

S1

S2

S3

S4


1.2.2 The records must be maintained for a period of time determined by the company, taking into account their relative importance.

PA BSC has not determined the retention time of information request records. See major indicator 1.2.1 above. Non-conformance in this indicator is NC-2010.01

X

MA The company has owned the SOP of Records Control, which aims for identification, storage, maintenance and destruction of records; However the implementation of information retention time has not been done in appropriate retention schedule. Several existing documents (e.g. Report of Environmental Management Plan / Environmental Monitoring Plan in 2008 and 2009, semester I) at present are not properly stored, so it can’t be accessed quickly. However the organization is advised to make the archival retention time schedule so the storage of documents will be more controlled. Non-conformance status of NC-2010.01 is declared as closed and at the main assessment the non-conformance of CFA-2010.01 is published with category

CFA.

X

S1

S2

S3

S4

PRINCIPLE #2 COMPLYING WITH APPLICABLE LAWS AND REGULATION.

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

Major

2.1.1 Evidence of compliance with relevant legal requirements

PA The organization has demonstrated an effort to meet several local, national, and international laws relating to the operation of plantations in Indonesia, among others: 1. Land use Rights published by National Land Agency in accordance with Act 18

year 2004. 2. Pay employee’s wages according with Regional Minimum Wages based on the

requirement of Act 13 year 2003. 3. Provide employee social security to all employees in accordance with the

requirements of Act 13 year 2003. 4. Prepare documents of environment management (Environmental

Management Plan / Environmental Monitoring Plan) and has been approved by Head of Musi Rawas District.

5. The license of Hazardous Waste management in accordance with Government Regulation 18 year 1999.

X


However, still there are some regulations that haven’t been fulfilled, for example: the organization has not implemented the management of Protected Area in accordance with Presidential Decree 32 year 1990, and several reports have consistently Submitted to relevant institution, such as: report of realization of environment management and monitoring to Regional Environmental Impact Management Agency (Bapedalda) Musi Rawas, Annual Report of Plantation Development Progress, Employments records, etc. Non-conformance in this indicator is NC-2010.02

MA Follow-up at the time of main assessment is the organization has shown progress in regulatory compliance; based on some audited regulations, some fulfilled regulations and some others haven’t been fulfilled. Examples of related regulations which have been fulfilled: - The management of protected area at riparian by installation of buffer zone

as wide as 50 m to left and right of the river in accordance with Presidential decree 32 year 1990.

- Employment Reporting to Department of Labour in accordance with Act 13 year 2003.

Evidence of several operational of company which haven’t complied the applicable regulations was found, such as: - Periodic reporting of Environmental Management Plan / Environmental

Monitoring Plan in accordance with Decree of Minister of Environment LH 45 year 2005;

- Occupational Health and Safety (OHS) license for tractor operator in estate (for example, in SPE) in accordance with Regulation of Minister of Labour 9 year 2010 Article 3, 4, 5, 11 and 13 regarding the operator officer of lift and transport airplane.

- Land Application License which was expired and has not been renewed in accordance with the Decree of Musi Rawas District Head No. 128a/KTPS/IV/2007;

- Provision of Hazardous material symbol at Hazardous material packaging storage in accordance with Regulation of Minister of Environment 3 of 2008.

- Act 25 of 2007 the company has not done LKPM (Investment Progress Report) reporting every 6 months.

- BSC has not done report obligation of job vacancy according to Presidential Decree 4 of 1980

Based on the observation, some of the causes of non-compliance with relevant regulations such as those mentioned above because the organization has not been giving special attention to it. For the future the organization has demonstrated evidence of efforts to comply with, for example: Environmental Management Plan – Environmental Monitoring Plan reporting every 6 months, submitting the Occupational Health and Safety (OHS) license for the tractor operator, submitting an extension of the Land Application to the Head of Musi Rawas District, and providing hazardous material symbol at the hazardous material storage room. This will be further verified during the surveillance. Non-conformance NC-2010.02 at Pre Assessment is declared closed and replaced by non-conformance NC-2010.03 with Minor category.

X

S1

S2

S3

S4


2.1.2 Evidence of efforts made to comply with changes in the regulations.

PA There is some evidence that the company has made efforts to comply with existing regulations, such as labour payment adjustment based on changes in Regional Minimum Wage, which is annually set by the Governor of South Sumatra. However, records of the adjustment efforts of other regulatory changes are not yet available. There are no Lists of Regulatory Compliance Evaluation that contain information about applicable regulations referred to, the articles of every regulation that must be complied with, and evidence of company compliance efforts against the articles of the regulation mentioned. Non-conformance in this indicator is NC-2010.02.

X

MA The organization has made the regulatory compliance evaluation mechanisms related to the document of Compliance Evaluation of PT BSC Regulations. These documents include: a list of regulations, articles that must be complied with, compliance status (yes / no), and evidence of compliance. Non-conformance status NC-2010.02 is declared as closed

√

S1

S2

S3

S4

Minor

2.1.1 A documented system, which includes written information on legal requirements that the palm oil company should comply with.

PA Not yet available. See major indicator 2.1.2 above. Non-conformance in this indicator is NC-2010.02

X

MA Available. See major indicator 2.1.2 above. Non-conformance status NC-2010.02 is declared as closed

√

S1

S2

S3

S4

2.1.2 A mechanism for ensuring that compliance with relevant legal requirements is implemented.

PA The organization does not have a documented procedure to conduct the evaluation of compliance with applicable and relevant legal requirements, for example:

Implementation of the Environmental Minister Decree No. 29 year 2003; Terms and procedures for License Waste Water Utilization

Implementation of Presidential Decree 32 year 1990; Management of Protected Areas,

Implementation of Act no. 18 year 2004; Plantation, Implementation of Act no. 13 year 2003; Labour, and others.

See also major indicator 2.1.2 above. Non-conformance in this indicator is NC-2010.02.

X

MA The organization has made the regulatory compliance evaluation mechanisms related to the document of Compliance Evaluation of PT BSC Regulations. These

√


documents include: a list of regulations, articles that must be complied with, compliance status (yes / no), and evidence of compliance. Non-conformance status NC-2010.02 at Pre Assessment is declared as closed.

S1

S2

S3

S4

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

Major

2.2.1 Documents showing ownership or lease of the land in accordance with relevant laws.

PA The organization has already had land tenure documents as stipulated in Article 9 of Act no. 18 year 2004 on Plantation, Land Use Rights No. 17/HGU/BPN/99 dated February 29, 1999 of 6,513 ha. Land rights certificate No. 07/99 dated June 12, 1999 issued by the National Land Agency (BPN). Land Use Rights documents are kept by Plantation Services Department (PSD), which is located in Pekanbaru - Riau, while at the location is not available.

√

MA The company has already had land tenure documents as stipulated in Article 9 of Act no. 18 year 2004 on Plantation, Land Use Rights No. 17/HGU/BPN/99 dated February 29, 1999 of 6,513 ha. Land rights certificate No. 07/99 dated June 12, 1999 issued by the National Land Agency (BPN) for land tenure. Based on the area data statement of PT BSC, work area reached 6,821 ha, so there are still areas of 308 ha without clear legal document in which up to the main activity of this assessment, it is still in the process of applying location license to National Land Agency that has been done since 2008. Based on a field visit Auditors team found that some of 308 ha have been planted with oil palm. The organization must be able to demonstrate clear legal evidence and follow up the licensing process of the additional area of 308 ha that has been submitted to the National Land Agency. Non-conformance in this indicator is NC-2010.04 with Minor category.

X

S1

S2

S3

S4

2.2.2 Evidence that legal boundaries are clearly demarcated and visibly maintained.

PA There are Situation Maps depicting boundaries of the working area of PT BSC, which is an attachment of Land use Rights Decree, signed by the Chairman of national Land Agency No. 36/1991. Based on the results of field visits to Block 47 SPE, it was found a clear demarcation of boundaries in the form of a trench of 4 meters wide, but there was no evidence that boundary pole maintenance has been carried out on the field. Non-conformance in this indicator in Pre-Assessment is NC-2010.03

X

MA The Company has Situation Maps depicting boundaries of the working area of PT BSC that is an attachment of Land use Rights Decree, signed by the Chairman of national Land Agency No. 36/1991. Based on observations in the field to Block A003, it was found a clear demarcation of boundaries in the form of main pole

X


located on the side of Sungai Pinang and two auxiliary blue-painted poles located on either side of the company's road bordering public lands. Based on the explanation given by staff of the company it is stated that the company has done the monitoring of boundary pole maintenance in the field periodically. The results of the boundary pole assessment in BPE in September and October 2010, out of 26 poles which are 15 concrete poles and 9 modified poles, there were two (8%) poles lost. Non-conformance status in pre assessment NC-2010.03 is declared as closed. However, the company has not been able to show evidence of legal documents concerning the boundaries poles owned as a clear reference in the monitoring and maintenance of boundary poles of land tenure. For example: The book of Land Use Rights poles issued by National Land Agency as a complementary of Situation Map documents. Non-conformance in this indicator is NC-2010.05 with Minor category.

S1

S2

S3

S4

2.2.3 Where there are, or have been, disputes, proof of resolution or progress towards resolution by conflict resolution processes acceptable to all parties are implemented.

PA The organization has identified the existence of land claims in its working area and are documented in the form of Land Claims Data - SPE, where in the working area of planting year 2005 the occupational area of 61.15 ha by other parties was identified, as follows: No. Block Occupants Village Area 43 Kadar Anyar 7.06 ha 43 Helmi Anyar 16.43 ha 44 Mahyudin Anyar 4.87 ha 44 Amran Anyar 4.31 ha 45 Johan Anyar 10.04 ha 46/47 Jamani Anyar 18.44 ha

√

Based on interviews with Assistant of SPE, from all occupied land currently only the area occupied by Jamani (Block 46/47) is still in the process of resolution in court. However, the company has not been able to show evidence of the resolution progress. The results of field observations indicate that condition of Block 46/47 occupied by Jamani has been planted with oil palm with an age range of 4 years, and there are no activities until the process in the court is completed.

MA The company has documented recapitulation of compensation of crops in the area of Sungai Pinang Estate in period of 1990 to 1999 covering an area of 4,945.82 hectares as much as 884 plots, total compensation cost as much as IDR 1,640,762,010 and legalization and administrative costs of IDR 104,284,052


According to interviews with some local residents, not all land occupiers in Anyar village accommodated in the process of compensation as the case of M. Ruyin and Herman, both of them stated that they did not get compensation. At that time according to residents there is a Special Team (from villages and sub districts) to facilitate the process of compensation of land and crops. Management unit considers that the compensation is in conformity appropriately and if any parties or community would re-claim they may conduct it in accordance with applicable law. In association with cases of M. Ruyin and Herman, according to the company staff their land has been included in the area of arable land in the name of Rusli Arba'a of 25.19 ha which the land was compensable with the value of IDR 125,950,000. Regarding the case of Herman who has been hindering the activities of the plantation as they relate to land claims, the case has been reported to the authorities. The interview results with former Head of Anyar Village, he stated that the area claimed by M. Ruyin and Herman are included in land tenure of Arba'a with evidence of SKT which was originally an area of approximately 66 hectares and is compensable by the company so there is no problem anymore. Referring to the statement letter dated 17 November 2003 signed by local government (Head of Sungai Pinang Village, BPD Sungai Pinang, Head of Anyar village, BPD Anyar and acknowledged by the Head of Muara Lakitan Sub district) that: (1) The area of Sungai Pinang village and Anyar village located in Sawah Lebar area Width field and within the location of PT BSC there is no longer left or left behind, everything has been measured; (2) By the completion of Sawah Lebar area measurement in PT BSC location, Sungai Pinang Plantation, then all the residents no longer entitled to claim damages, and the statements ever made by the residents, government agencies and PT BSC company and PT Lonsum are no longer valid. Recapitulation of compensation of PT BSC period November 2003 covering an area of 230.04 hectares with a total compensation valued at IDR 440,985,000 Associated with the case of Jamani (Block 46/47), according to SPE staff and information from National Land Agency staff of Musi Rawas, at that time the case has already decided by the court where the court has decided that the company won the case, but the company has not received authentic evidence of documents of the court's decision. It is still found evidence in the Land Use Rights area of PT BSC there is land occupation by the residents there (Zakaria and Kadenan) that the evidence or resolution progress has not been available. Verification on 18 April 2011:

BSC can show evidences of the completion of the process and progress of land settlement by all parties (owner of the lands are Zacharias and Kadengan). More land settlement process as follows: 1) On December 3rd and 4th, 2010; meeting was held which was involved landowners, local governments, and the company representatives. The result of the meeting was community has willing land settlement with compensation.

X


Attendance list is available. 2) On December 9, 2010; both parties visited the location to be settled. The area is a productive rubber and an old rubber plantation. 3) On 15 to 17 December 2010, both parties are willing to settle the land with compensation. The local land owner makes a statement that they are willing to release. The land that has been willing to release names are Nang Ali (54 years) covering 10 ha, Agus Tiwan (30 years) covering 15 ha, Nawi (48 years) covering 10 ha, Dina / Tarigan (62 years) covering 15 ha, Burlian (52 years) covering 25 ha, Erwandi (30 years) covering an area of 4 ha, Ahmad Yani (40 years) covering 14 ha and Nawawi (41 years) covering an area of 7 ha. Available documents of an agreement between both parties. For Land Case of Jamani located in Block 46/47 have to show proof of authentic 'court' which establishes the disputed land is owned by the company. Auditor considers this corrective action taken, and will be further verified during subsequent surveillance visit. Non-conformance NC-2010.06 is considering Open with Minor category.

S1

S2

S3

S4

Minor

2.2.1 Evidence of land acquisition resolution with free prior and informed consent.

PA The organization has been able to demonstrate some evidence of resolution of land acquisition in the form of Minutes of Compensation and Payment Receipt, for example: Minutes of Compensation for an area of 66.76 ha to 8 residents of Anyar village in 2008 in Block 39 and 40, namely: Arba'a, Baiduri, Cek Aleh / Kuripto, Cik Mun, Goni / Hasbullah, Madian Mesih, Sugian, and Syarkowi. However, evidence of resolution progress for of occupational cases mentioned in 2.2.3 above, cannot be demonstrated. Non-conformance in this indicator is pre assessment NC-2010.03 and CFA 2010.17

X

MA According to interviews with some local residents, not all land cultivators in Anyar village accommodated in the process of compensation as the case of Mr. M. Ruyin and Mr. Herman, both of them stated that they did not get compensation. At that time according to residents there is a Special Team (from villages and districts) to facilitate the process of compensation of land and crops. Management unit considers that the compensation is in conformity appropriately and if any parties or community would re-claim they may conduct it in accordance with applicable law. In association with cases of M. Ruyin and Herman, according to the company staff their land has been included in the area of arable land in the name of Rusli Arba'a of 25.19 ha which the land was compensable with the value of Rp. 125,950,000 Regarding the case of Herman who has been hindering the activities of the plantation as they relate to land claims, the case has been reported to the authorities.

√

The interview results with former Head of Anyar Village (Kuripto), he stated that the area claimed by M. Ruyin and Herman are included in land tenure of Arba'a with evidence of SKT which was originally an area of approximately 66 hectares


and is compensable by the company so there is no problem anymore. Non-conformance status NC-2010.03 and CFA 2010.17 are declared as closed

S1

S2

S3

S4

2.2.2 A mechanism to resolve conflict which is accepted by all parties

PA There is conflict resolution mechanisms draft in the form of Land Cases Handling Structures prepared by Plantation Services Department (PSD). However, it has not been endorsed by top management and there has been no evidence socialized to the parties. Non-conformance in this indicator is NC-2010.03

X

MA The company already has a conflict resolution SOP No.007/BSC-PK/I4/2009 dated 2 April 2009, which aims to provide guidance in resolving problems or conflicts with communities in their respective operational units. The responsible parties for the implementation of this procedure are the Operational Management Unit, Head Department and the Departments related to the Minamas Plantation. SOP on the conflict was prepared by the company without involving the parties (stakeholders) in developing this SOP. Non-conformance status Pre Assessment NC-2010.03 is declared as closed and Non-conformance in Main Assessment is NC-2010.07 with Minor category.

X

S1

S2

S3

S4

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.

Major

2.3.1 Records of any negotiated agreements between traditional owners of land and plantation companies (if any), supplemented with maps in appropriate scale.

PA The organization has a document of Social Impact Assessment Results of Oil Palm Estates Management of PT BSC in January 2010. However, the substance of the document is not explicitly stated whether or not there is ownership of land based on traditional rights in BSC working area. Land ownership based on traditional rights (e.g. customary rights) is protected by Act no. 5 year 1960, Article 22, which shall be stipulated by Government Regulation. In this regard, then to ensure whether or not there is ownership of the traditional rights of in the area of BSC, is needed legal reference from the relevant agencies (e.g. National Land Agency). Non-conformance in this indicator is CFA-2010.04

X

MA Based on the explanation of BSC company and stakeholders, so far it is not found the ownership of traditional rights in the area of oil palm estates of the company. Non-conformance status pre Assessment CFA-2010.04 is declared as closed.

√

S1


S2

S3

S4

2.3.2 Maps of an appropriate scale showing extent of recognised customary rights.

PA The company has not identified the existence of traditional rights. See major indicator 2.3.1. Non-conformance in this indicator is CFA-2010.04

X


√

S1

S2

S3

S4

2.3.3 Copies of negotiated agreements detailing process of consent.

PA The company has not identified the existence of traditional rights. See major indicator 2.3.1. Non-conformance in this indicator is CFA-2010.04

X


√

S1

S2

S3

S4

PRINCIPLE #3 COMMITMENT TO LONG-TERM ECONOMIC AND FINANCIAL FEASIBILITY

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

Major

3.1.1 A documented working plan of the company for a minimum of 3 years period.

PA There are company’s long-term work plans, which are 2010/2011 Budget Presentation & 2010- 2014 Projection. Coverage included are: calculating the estimated production, estimated production costs, plant maintenance costs, general costs, the cost of social activities, training costs, as well as the cost of environmental and Occupational Health & Safety activities.

√


MA Budget presentation of 2010-2011 and 2012-2014 projection documents for Sungai Pinang POM that includes the calculation of the cost of the production process, estimates of production processing, the amount of labour and mills costs. Revised final document statistical and cost data No. 2011/2011 budget. 037/MP-ALL/08/2010. Coverage area includes the area, the amount of production, harvesting costs, plant maintenance costs for activities generating weeding circle, Strip weeding, spot weeding manual, census counting Palms, supplying, upkeep road, upkeep bridge, upkeep culvert, path/foot bridges, water management, boundaries/trenching, beneficial plant P and D, P and D Pest, manuring P and D barn owl, EFB transport, individual terrace maintenance, etc.

√

S1

S2

S3

S4

Minor

3.1.1 Annual replanting programme, where applicable, projected for a minimum of 5 years with yearly review.

PA BSC planting areas has not yet entered a period of replanting within the next five years, so the annual replanting program has not been made.

√

MA BSC planting areas has not yet entered a period of replanting within the next five years, so the annual replanting program has not been made.

√

S1

S2

S3

S4

PRINCIPLE #4 USE OF APPROPRIATE BEST PRACTICES BY GROWER AND MILLERS

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

Major

4.1.1 Standard Operating Procedures (SOPs) for estates, from land clearing to harvesting.


PA There is plantation operational SOP No: 110/EST-ARM/08 dated August 19, 2008, which contains such as: Seeding, Land preparation, planting, maintenance (fertilizing, spraying, pest and disease control, etc.), and harvesting. For example:

Guidelines for land clearance according to the applicable rules and regulations including the RSPO principles and criteria, such as: feasibility study, preliminary surveys, licensing, zero-burning, etc.

Guidelines for weed control on the circle manually and chemically, but the procedures for controlling weeds in the harvesting road cannot be demonstrated.

Fertilization for mature plants based on the recommendation of the R & D MRC, is generally performed routinely in one year. For the type of fertilizer N and K it is done twice a year, while for fertilizer P, MG, MN, Cu, ZN, and B, it is applied not more than once a year. - Standard of bunch ripeness, Unripe 0-4 loose fruit, Under ripe 5-9 loose fruits,

Ripe > 10 loose fruit and Empty bunch Non-conformance in this indicator is CFA-2010.05.

X

MA Same with PA. Weed control in harvesting road listed in the SOP Agronomy Reference Manual of oil palm section 16.5 regarding general weed control that are included weeds in the circle and the pioneered market for mature plants and already productive. Non-conformance status pre assessment CFA-2010.05 is declared as closed.

√

S1

S2

S3

S4

4.1.2 Standard Operating Procedures (SOPs) for mills, from reception of FFB to dispatch of Crude Palm Oil and Palm Kernel Oil.

PA SOP for Mill 110/POD-FAC/07 is available, which covered Reception of fruit – Boiling – Peeling – Stirring – Pressing – Clarification - Separation of Seeds & Fibre - Kernel Station - Palm oil and Palm Kernel Storage. The document has no endorsement from the authorities. SOP for mill administration 130/POD-FAC/07 is available containing administrative of palm oil and palm kernel dispatch. Non-

conformance in this indicator is CFA-2010.05

X

MA There are SOP for Mill, which is separated into: 1) Technical guidance part I No. 110/POD-FAC/07 covered the mill process, from Reception of fruit, Boiling, Peeling, Stirring, Pressing, Clarification, Separation of Seeds & Fibber, Kernel Station, Palm oil and Palm Kernel Storage. And also waste water treatment, Water treatment, Laboratory Analysis. 2) Technical guidance part II No. 120/POD-FAC/07 covered machine operation that is:

- Boilers - Power Engine - Synchronization - Operation and maintenance of electrical panels - Network Supply - Electric motor and control circuit - Speed reducer - Grounding and lightning rod

√


- Occupational Security and safety. The SOP document has been approved by the Ibrahim bin Abdul Majid (Head Plantation Operation) on July 26, 2010. Non-conformance status pre-assessment CFA-2010.05 is declared as closed.

S1

S2

S3

S4

Minor

4.1.1 Records of checking or monitoring of operations. Minimum requirement: once a year

PA Inspection of operational activities is available, including: Inspection of CPO & Palm Kernel production and the delivery period July 2007 - December 2008, conducted on May 11, 2009. The results of the inspection include: data presentation and administration of the mill are well-presented, there are over processing cost in July - December 2008 due to several things such as high employee overtime, the allocation of transit power and water supply, service cost of boiling, kernel, and threshers stations; and high usage of spare parts material in all stations in July to December 2009. But the Action Plan has not been demonstrated.

√

MA Inspection of MA (Mill advisory) is performed every 6 months Inspection of PA (Plantation advisory) is performed every 6 months Inspection by internal audit of supplies and purchasing semester I 2009/2010. The results of the inspection are: empty bunch supplies had accumulated under a inclined bunch conveyor which causes the environment around the mill area dirty; the mill capacity in the period 2009/2010 was under the target due to a malfunction of the machine that causes the mill breakdown occurred at all stations so that sustainable maintenance repairs are necessary.

√

S1

S2

S3

S4

4.1.2 Records of operational results

PA There are records of operational activities in the Report Manager period of December 2009, including: 1. Recapitulation of FFB grading at the POM on February 5, 2010; Ripe (88.7%),

Unripe (5.32%), under ripe (1.82%), over ripe (4.16%) and Empty Bunch (0%).

2. Monitoring of monthly maintenance circle spraying , Year 2009/2010; 3. Mill production Daily Report dated March 9, 2010. Fruit coming is 312,280 kg;

total fruit in the mill is 411,746 kg; processed fruit is 327,351 kg; 84,395 kg left today, the number of process hours is 12.58 hours; the capacity is 26.01 tons per hour.

1. Recapitulation of Plate Spray Achievements and Pioneer Markets in period of July to December 2009 - Bukit Pinang Estate.

√

MA Estates and mills operational activities are recorded completely in the Report Manager documents that are created every month. The company has stored all

√


Report Manager documents well. The activities covered in the document include: the use of the workforce, achieving production of FFB to the budget, the production of CPO and palm kernel, the result of plant maintenance activities (fertilizer, spray).

S1

S2

S3

S4

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

Minor

4.2.1 Records of regular soil, leaf and visual analysis.

PA According to information from the staff of the estate, soil analysis activities were carried out in 2008. However, records of the results of soil and leaf analysis have not been able to be demonstrated because it is still stored in Minamas Research Centre (MRC) Teluk Siak - Riau Non-conformance in this indicator is NC-2010.06

X

MA The organization has been able to show the results of soil and leaf analysis. For example: 1) Documents of Soil of PT Bina Sains Cemerlang (BSC) Plantation, Sungai Pinang and Bukit Pinang Estates. This document includes Soil series, slope class, map symbols, description of soil series, area. The results of soil analysis are used as a basis for fertilizer recommendation. 2) Documents of Leaf Analysis Report of Bukit Pinang and Sungai Pinang Estate, Period of April 2009. This document includes blocks number, LSU number, area, planting year, soil type, number of plants, % on dry matter, and PPM on dry matter. Leaf analysis activities are conducted annually by taking leaf samples in each block. Results of leaf analysis are used as the basis for determining fertilizer dosage recommendations. Leaf analysis activities are conducted by the Laboratory of Minamas Research Centre.

X

Auditor team judged that the organization has been able to show records of results of soil and leaf analysis so that non-conformance status in pre-

assessment NC 2010.06 is declared as closed. However documents of the results of soil fertility analysis owned by the BSC has not sufficiently explained the analysis of soil fertility based on soil sampling in location; the organization must be able to provide evidence of the records of soil analysis describing soil fertility. Non-conformance in this indicator is NC-2010.08 with Minor category.

S1

S2

S3

S4


4.2.2 Records of efforts to maintain and increase soil fertility (e.g. the use of fertilizer, legume cover crops, compost, and land applications of POME or EFB) based on the results of analysis carried out as in Point 1 above.

PA Records of efforts to maintain soil fertilizer such as: • Fertilization program period 2010/2011 Bukit Pinang Estate. Urea

recommendation 2.38 kg/tree/year; total 1,005.713 ton in a year. MOP recommendation 2.54 /tree/year; total 1,071.617 ton in a year.

• Empty bunch application period July 2009 - February 2010. Dose given was as much as 33 tons/ha. Empty bunch application area is based on visual observation, such as: the ease of road access and slope.

• Land application is conducted by flowing effluent into the flat bed in the estate with a dose of 750 tons / ha / year. Consideration of site selection is based on visual observations, such as: it is near from mill.

√

MA The organization has documented the maintaining soil fertility such as fertilizing, empty bunch application, and land application. Fertilizer recommendation is based on leaf analysis.

√

S1

S2

S3

S4

4.3 Practices minimise and control erosion and degradation of soils.

Minor

4.3.1 Maps of fragile soils must be available

PA BSC has not demonstrated the evidence of marginal land existence identification results. Non-conformance in this indicator is NC-2010.07

X

MA There are land maps included in the documents of PT Bina Sains Cemerlang (BSC) Plantation, Sungai Pinang and Bukit Pinang Estates. The map describes the soil series (soil type), slope classes and the area. Non-conformance status NC-2010.07 is declared as closed

√

S1

S2

S3

S4

4.3.2 A management strategy should exist for planting on slopes above a certain limit (needs to be soils and climate specific).

PA Management efforts for planting on sloping land, among others: • Making the horse shoe. The number of horse shoe that have been made in

Bukit Pinang Estate (BPE) through February 2010 is 7,172 covering an area of 105.5 ha. In the year 2010 - 2011 horse shoe making program has been done as much as 28,414 horse shoe in 2010 and 28,524 horse shoe in 2011.

• Making silt pit. The number of silt pit that has been made in the BPE until February 2010 is 13,971 covering an area of 517.4 hectares out of planned area of 2,956 ha.

√


• Preparation of U-shape frond stacking on sloping areas. • Planting Nephrolepis plants in harvesting path on sloping areas. • Planting Vertiver plants in steep areas.

MA The strategy of planting on sloping land has been done well, for example: the making of horse shoe, silt pit, and preparation of the U-shaped midrib frond stacking, Nephrolepis and Vertiver planting. Based on field visits (Block C13), there were horse shoe and silt pit building on the sloping area. The organization is doing construction of horse shoe and silt pit in the owned sloping areas.

√

S1

S2

S3

S4

4.3.3 Presence of a road maintenance program.

PA The road maintenance program is available in the form of documents of Road Hardening Plan and Realization, which consists of: • Hardening of main road using 5:7 split stones within 2004 - June 2009 of

17,117 m long out of 37,125 m. • Hardening of collection road using stone within 2004 - June 2009 of 10,253 m

long out of 156,555 m. • Hardening of the main road using asphalt type TX 355 and T 355

√

MA The organization has a road maintenance program of 2010-2011. The planned road maintenance program includes: road hardening using stones; in some point of the area it is planned to be hardened using the asphalt type TX 355 and T 355.

√

S1

S2

S3

S4

4.3.4 Subsidence of peat soils should be minimised under an effective and documented water management programme

PA BSC has not been able to demonstrate evidence of peat land existence identification results in its work area. Will be further verified in the main assessment. See minor indicator 4.3.1.

MA Based on soil analysis documents (document of Soil of PT BSC), there is no peat land in PT BSC management area.

NA

S1

S2

S3

S4

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


PA Identification of marginal land existence has not been done, so that there is no enough evidence of management strategy. See minor indicator 4.3.1.a Non-conformance in this indicator is NC-2010.07.

X

MA Based on the documents the Soil of PT BSC, areas that have marginal or critical characteristics (crop limiting factors) are planned to be managed with the technique of additional nutrients such as: application of empty bunch, planting of Nephrolepis, appropriate dosage fertilizing techniques, etc. Based on field visits, the organization has conducted activities in accordance with the recommendations of the soil analysis done. Non-conformance status of pre-assessment NC-2010.07 is declared as closed.

√

S1

S2

S3

S4

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

Major

4.4.1 Protection of watercourses and wetlands, including maintaining and restoring appropriate riparian buffer zones at or before replanting.

PA BSC has been doing efforts to protect the watershed and wetlands that is not doing the spraying and fertilizing activities along the riparian and ditches since January 2010 with coverage area (buffer zone) of 5 oil palm trees on the left and right. But there has been no documentations or records that demonstrate it, so it is advisable to make policy or specific instructions in order to make the efforts become realization and as a form of commitment from management. The organization needs to review the activities related to the protection of waterways and wetlands in accordance with Presidential Decree 32 of 1990. Will be verified at the time of main assessment activity. Non-conformance in this indicator is NC-2010.02

X

MA The efforts to protect waterways and wetlands have been started by the organization. For example: defining the buffer zone as wide as 50 meters on the left and right sides of river; buffer zone areas that have been planted with oil palm marked with yellow paint as much as 5 trees on the left and right of the river; in the buffer zone area has no chemicals (spraying and fertilization). The organization acknowledges that it is based on the recommendation of the identification of HCV as well as government regulation (Presidential Decree 32 of 1990). Team visited the Pinang river flow that is across the operational area of PT BSC; the area of Pinang River is also defined as HCV 4.1 area. Non-conformance status of NC-2010.02 is declared as closed.

√

S1

S2

S3


S4

Minor

4.4.1 An implementation water management plan

PA SOP 110/POD-FAC/07, Chapter 4.1 regarding Water Treatment. Water source is the Pinang river, which is used for domestic purposes, Fresh Fruit Bunch processing, etc. The water used is first given treatments of cleaning and sedimentation of dissolved materials. Moreover, monitoring of water quality is done daily by the labouratory department of the mill and is done every semester by consultant agency, however it was not yet reported periodically to related agencies. Non-conformance of this indicator is NC-2010.02.

X

MA The organization has done periodical water analysis. The water samples tested come from monitoring wells and residential well. There are records of water analysis results done by the Environmental Labouratory UPTB – Environmental Agency of South Sumatera Province, in forms of Test Results Certificates No. 660/539/SHU-LAB/VII/2010 and No. 660/712/SHU-LAB/VIII/2010. Analysis was done in June and August 2010. The parameters tested are, among others: color, odor, acidity, clarity, concentrations of metal, BOD, COD, chlorine, E. coli, and the coliform total. The water analysis results are given on the Environmental Management Plan/ Environmental Monitoring Plan to be reported to related agencies every semester. Non-conformance status NC-2010.02 is declared as

closed.

However, the auditor team thought that there were no sufficient evidence of the tested parameters were in accordance with the quality control values set by the government. The organization has to provide evidence that the water quality monitoring results are in accordance with the quality control values set by the government. For instance: conducting water quality monitoring results evaluation. Non-conformance of this indicator is NC-2010.09 with Minor category.

X

S1

S2

S3

S4

4.4.2 Monitoring of effluent BOD

PA There are records of mill liquid waste BOD measurement conducted by the Environmental Agency of South Sumatera Province, which is consisted from: - period June - July 2009, Inlet measurement results is 584.8 mg/l, Outlet measurement results is 437.8 mg/l - period May 2009, Inlet 1383 mg/l, Outlet 523.4 mg/l - period April 2009, Inlet 2644 mg/l, Outlet 136.2 mg/l The monitoring results has been reported to the Environmental Ministry of South Sumatera Province, however the mailing evidence has not been able to be presented.

X


Records of BOD monitoring for the periods of August, October, November and December 2009 could not be shown on site. Non-conformance of this indicator is NC-2010.02

MA The organization has shown complete records of liquid waste BOD monitoring. Liquid waste BOD monitoring is done monthly by sending samples of waste water to the Environmental Labouratory UPTB – Environmental Agency of South Sumatera Province. Records of Certificate of Oil Palm Industry Waste Water Evaluation Results for periods January – December 2009 and January – October 2010. The average evaluation results show that the waste BOD is still below the quality control values set by the government (Governorial Regulation No.18 year 2005). The liquid waste BOD evaluation results are given on the Environmental Management Plan/ Environmental Monitoring Plan to be reported to corresponding agencies every semester. Non-conformance status of Pre-Assessment non-

conformance NC-2010.02 is declared as closed.

√

S1

S2

S3

S4

4.4.3 Monitoring of mill water use per tonne of FFB

PA There are documents of mill water usage monitoring, in forms of: POM Monthly Report Document, December 2009. The total realized water

usage for domestic and processing is 2.46 m3 per ton FFB.

POM Monthly Report Document, February 2010. The total realized water usage for domestic and processing is 2.3 m3 per ton FFB.

√

MA The organization has conducted monthly monitoring recording the mill water usage. The recording of water usage is documented within the Manager Report

document. The water usage data is stated in units of m3 per ton FFB.

The trend of water using in Sungai Pinang mill is lower than previous year. Period

of 2009/2010 water use as 228,196 m3 and also period of 2010/2011 water use

as 147,390 m3

√

S1

S2

S3

S4

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

Major

4.5.1 An IPM plan is docummented and current


PA BSC has a number of IPM program, among which are: a. Beneficial plants implantation to control neetle caterpillar biologically. The

plants used are: Turnera subulata, Cassia cobanensis, and Antigonon leptosus. There are realization of beneficial plants implantation in February 2010, in Bukit Pinang Estate. However the implantation program was not available. If the census results shows that the caterpillar attack was over the normal threshold (more than 5 caterpillars per oil palm midrib), a chemical control method will be conducted.

b. Barn owl (Tyto alba) breeding as rat control method. Each 30 ha of land is given 1 nest box, this is not in accordance with the SOP stating that each 10 ha should be given 1 nest box. BSC has a program to increase the number of nest boxes that it will reach 1 nest box per 20 ha in 2010 and 1 nest box per 10 ha in 2011. The IPM Program is listed within the Budget Presentation of 2010 and 2011 – Cost Analysis of Mature Plants Maintenance.

Non-conformance of this indicator is CFA-2010.08

X

MA BSC has implemented Integrated Pest Management (IPM) techniques, among them are: a. The company is no longer implanting beneficial plants; maintenance of the

plants is done. The plants used are: Turnera subulata, Cassia cobanensis, and Antigonon leptosus.

b. Barn owl (Tyto alba) breeding as rat control method. The company provided barn owl nest boxes to keep the barn owl population around the plantation area. The Tyto alba monitoring data of BPE in September 2010: 7 eggs, 6 nestlings, 9 fledglings. There is also status monitoring of BPE Nest Boxes, currently there are 103 nest boxes; 38 of which are made from wood and 65 of which are made from iron.

c. Neetle caterpillar census is done twice a year. In the event of massive attack, the monitoring will be done twice a week until the caterpillar existance is diminishing. BPE monitoring data of October 2010 states that there was no neetle caterpillar attack within the company operation area.

Non-conformance status of Pre-Assessment CFA-2010.08 is declared as closed.

√

S1

S2

S3

S4

Minor

4.5.1 Monitoring extent of IPM implementation including training


PA There are a number of IPM monitoring records, among them are:

Beneficial plants implantation monitoring of February 2010. Turnera subulata planted on the main path is 11,412 m and on the harvesting path is 14,400 m; Cassia cobanensis planted on the main path is 9,756 m and on the harvesting path is 13,398 m; Antigonon leptosus planted on the main path is 285 m and on the harvesting path is 230 m.

Rat control monitoring is done simultaneously with grading activity in loading ramp. However the records evidence of rat control monitoring either in the grading or in the field.

IPM Training has been done for the workers every beginning of the pest census activity, beneficial plants implantation, detecting method of barn owl, etc. But the IPM training records are not available.

Non-conformance of this indicator is CFA-2010.08

X

MA There are a number of IPM monitoring records, among them are:

Beneficial plants implantation monitoring of October 2010 in BPE. Turnera subulata planted on the main path is 11,412 m and on the harvesting path is 14,400 m; Cassia cobanensis planted on the main path is 9,756 m and on the harvesting path is 13,398 m; Antigonon leptosus planted on the main path is 285 m and on the harvesting path is 230 m. The company is no longer conducting area addition for beneficial plants.

Rat control monitoring is done with attack census towards harvested FFB at the TPH. Census data of August 23, 2010 at SPE Division I: the number of rat attack is 2 bunches (1.6% of the total sample) where that value is still below the production loss threshold of 5%.

Neetle caterpillar existance recapitulation of October 2010 in BPE. Based on the mentioned census, there were no attacks at Divisions I, II and III. The company was able to present records of integrated pest management trainging conducted on December 15, 2009 which was held together with Minamas Research Centre. The training materials discussed the techniques of rat control, neetle caterpillar and bagworm census. The attendance list is available.

Non-conformance status of Pre-Assessment CFA-2010.08 is declared as closed.

√

S1

S2

S3

S4

4.5.2 Monitoring of pesticide toxicity units (a.i. /LD 50 per tonne FFB or per hectare)

PA Unavailable. Non-conformance of this indicator is CFA-2010.08

X


MA Records of herbicide and insecticide usage of BPE in 2009/2010 are available. The records contain information of the pesticide type, active ingredients, quantity of usage and pesticide toxicity. For example:

Ally 20 WDG; active ingredient Metil Metsulfuron; quantity of usage 9.85 kg; area sprayed 3,176 ha; pesticide toxicity 0.00000016 mg/kg FFB.

Audit 486 g/l; active ingredient Iso propilamina glifosat; quantity of usage 3,545.18 liter; dosage 1.12 l/ha; pesticide toxicity 0.000005889 g/kg FFB.

Kenlon 480 g/l; active ingredient Triklopir butoksi Etil Ester; quantity of usage 1,470 liter; dosage 0.46 l/ha; pesticide toxicity 0.000002442 g/kg FFB.

Agristick; active ingredient Alkilaril poligikol eter; quantity of usage 247 l; dosage 0.08 l/ha ; pesticide toxicity 0.0000041 g/kg FFB.

MA Records of herbicide and insecticide usage of SPE in 2010/2011 are also available. For instance: Metafuron; active ingredient Metil metsulfuron; quantity of usage 178 kg;

pesticide toxicity 0.00000258 mg/kg FFBAmiphosat; active ingredient Iso propilamina glifosat; quantity of usage 3,253.45 l; pesticide toxicity 0.00004724 g/kg FFB.

Starane; active ingredient Fluroksipir; quantity of usage 159 kg; toxicity 0,00000581 g/kg FFB.

Kenlon; active ingredient triklopir butoksi etil ester; quantity of usage 702 l; toxicity 0.00001019 g/kg FFB.

Basta; active ingredient Amonium glufosinat; quantity of usage 1,441 l; toxicity 0.00002093 g/kg FFB.

Decis; active ingredient Deltametrin; quantity of usage 56 kg; toxicity 0.00002093 g/kg.

Non-conformance status of Pre Assessment CFA-2010.08 is declared as closed.

√

S1

S2

S3

S4

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

Major

4.6.1 Evidence of use of only approved and registered agrochemicals permitted by the relevant authorities.


PA The agrochemical products used, among them are:

TRAP 20WP; active ingredient metsulfuron methyl; Registration No.: RI 1797/11-2007/T.

DECIS 2,5EC; active ingredient deltametrin; Registration No.: RI.387/11-2002/T.

AUDIT 486 SL; active ingredient Isopropilamina glisofat; Registration No.: RI. 1836/9 - 2008/T.

KENLON 480EC; active ingredient triklopir butoksil etil ester; Registration No.: RI.2433/5-2006/T.

METAFURON 20WP; active ingredient Metil metsulfuron; Registration No.: RI.1224/5-2006/T.

STARANE 200EC; active ingredient Fluroksipir; Registration No.: RI. 854/5-2004/T.

√

MA Similar with PA. The agrochemical products used, among them are:

Metafuron 20 WP; active ingredient metsulfuron methyl; Registration No. RI. 1224/5-2006/T

Trap 20 WP; active ingredient metsulfuron methyl; Registration No. RI.1797/11-2007/T.

AGRISTICK 400 ml/l; Alkilaril poligikol eter; Registration No.: RI. 270/4-2003/T Basta; active ingredient Atropin; Registration No.: RI. 1113/1-2004/T Garlon 480 EC; active ingredient Triklopir 480g/l; Registration No RI. 2433/5-

2006/T.

√

S1

S2

S3

S4

4.6.2 Records of pesticide use (including active ingredients used, area treated, amount applied per ha and number of applications).

PA Records of pesticide usage are available, in forms of Work Achievements Book and Product Usage Book, which consist of:

AUDIT 486 SL; active ingredient Isopropilamina glisofat; application area 15 Ha; dosage 0.8 L/Ha; single application.

KENLON 480EC; active ingredient triklopir butoksil etil ester; application area 16 Ha; dosage 0.3 L/Ha; single application.

STARANE 200EC; active ingredient Fluroksipir; application area 25 Ha; dosage 0.06 L/Ha; single application.

√

MA See indicator minor 4.5.2 Records of pesticide usage of SPE in 2010/2011 are available, which consist of the active ingredient, application area, quantity of usage per hectare and the number of application. For instance:

ALLY 20 WDG; active ingredient Metil metsulfuron; quantity of usage 178 kg; dosage 0,05 kg/ha; for wood weed and broadleaf control.

AUDIT 486 SL; active ingredient Isopropilamina glifosat; quantity of usage 3,253.45 l; dosage 0.87 lt/ha; for thatch and general weed control.

GARLON; active ingredient Triklofir butoksil etil ester; quantity of usage 702 lt; dosage 0.19 lt/ha; for wood weed control.

DECIS; active ingredient deltametrin; quantity of usage 156 lt; dosage 0.04 lt/ha; for rat control.

√


S1

S2

S3

S4

4.6.3 Documentary evidence that usage of agrochemicals is appropriate for the target species, given at correct dosage and applied by trained personnel in accordance with the product label and storage instructions.

PA See indicator major 4.6.2. Evidence of spray worker training was not yet available. Will be verified further on the main assessment phase. Non-conformance of this indicator is NC-2010.09.

X

MA In December 2009 in BPE Division II, training towards BPE spray workers had been conducted on the introduction of general weed of oil palm plants. Attendance list and materials are available. The company has composed training program for SPE employees including spray workers. The training is planned to be conducted in November 2010. Non-conformance status of Pre Assessment NC-2010.09 is declared as closed.

√

S1

S2

S3

S4

4.6.4 Waste material from agrochemicals including pesticides containers are properly disposed in accordance with laws and regulations.

PA BSC has procured storage permit for hazardous materials based on Decree of Environmental Affairs Minister No. 284 year 2009, dated July 6, 2009. Pesticide packagings are stored in a temporary storage for hazardous materials located within the mill area. However the procedure of handling hazardous materials could not be presented. Non-conformance of this indicator is NC-2010.09

X

MA Handling Hazardous material SOP 020/BSC-ESH/10 of August 2 2010 is available. That procedure stated hazardous materials including pesticide packagings should be stored in the licensed temporary storage. The company has licence for storing hazardous material only in Mill. Hazardous materials (including used oil, chemical packagings from the mill) should be stored there. Non-conformance status of Pre-Assessment NC-2010.09 is declared as

closed.Based on field visit, there were used oil and diesel fuel filter stored at the Sungai Pinang Estate workshop).. The company has to store the hazardous waste produced in a storage with license in accordance with Government Regulation 18 of 1999, which is in the mill. Non-conformance of this indicator is NC-2010.10 with Minor category.

X


S1

S2

S3

S4

Minor

4.6.1 Documentary evidence that use of chemicals categorised as World Health Organisation Type 1A or 1B, or listed by the Stockholm or Rotterdam Conventions, and paraquat, is reduced and/or eliminated.

PA BSC does not use Paraquat pesticide. See indicator major 4.6.1

√

MA See indicator 4.6.1 The company does not use Paraquat. Managerial Memorandum on December 11, 2009 regarding the termination of paraquat pesticide usage in SPE. In September 2009, there were gramoxone usage (active ingredient Paraquat) for 400 lt.

√

S1

S2

S3

S4

4.6.2 Records of the results of health check-up for those who apply agrochemicals.

PA Will be verified further on the main assessment phase.

MA There are medical screening records for employees including BSC spray workers. In that document, there are reports of immunization, pregnant women examinations, the number of mothers giving birth and recapitulation of diseases commonly experienced by employees. The medical screening for the spray workers was conducted on October 29, 2010 at the central clinic, 52 estate employees were participating.

√

S1

S2

S3

S4

4.6.3 Records showing that no work with pesticides for pregnant and breastfeeding women.

PA Will be verified further on the main assessment phase.

MA Recommendation letter from the clinic midwife so that pregnant employees or even breastfeeding ones are to be transferred to work unrelated with chemicals. A recommendation letter for Mrs. Mutmainah on August 4, 2010 is listed. Field inspection and interview with the central clinic officer have confirmed the existance of such policy.

√

S1

S2


S3

S4

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

Major

4.7.1 Evidence of a documented occupational safety and health (OSH) policy and its implementation.

PA There is a OHS policy signed by the CEO Minamas Plantation dated on July 5, 2008, which consisted of: Commitment: The company is obliged to execute OHS program in all the operational activities in the plantation and factories. The company has made Plantation and Mills SOP to achieve that goal. The commitment is fulfilled by the complying of OSH regulation, and the continuous improvement that it becomes the risk management means and company activities management. Purposes and Goals: 1. Protecting everyone involved in the company activity (zero accident) and protecting company assets. 2. Creating a safe and healthy work activities, and also improving the workers' conscience towards the safety culture. 3. Complying the Acts of Republic of Indonesia regarding OHS. There is an OHS Procedure No: 711/TQEMS-P2K3/07, Minamas Plantation. Signed on December 14, 2007 by the Head Plantation Operation.

√

MA The organization keeps the document of OHS Policy and tries to implement and monitor its implementation.

√

S1

S2

S3

S4

4.7.2 Responsible person for health and safety programmes are to be identified and records of regular meetings to discuss health, safety and welfare issues must be kept.

PA Advisory Committee of Occupational Health and Safety at the mill is the responsibility of the mill manager, with the: Chairman (Manager), Secretary (Head of Administration Division), Members (Mill Assistants, TQEM Assistants).

√


MA There are Advisory Committees of Occupational Health and Safety, which are: - Advisory Committee of Occupational Health and Safety at BPE based on the

Decree of Labour and Transmigration Agency Chairman for Musi Rawas District No. 560/533/NAKERTRANS/IV/2010 untuk Bukit Pinang estate. Chairman is Budi Utomo. Tinggi Aman Purba acting as secretary.

- Advisory Committee of Occupational Health and Safety di SPE based on the Decree of Labour and Transmigration Agency Chairman for Musi Rawas District No. 560/121/NAKERTRANS/IV/2010 untuk Sungai Pinang Estate. Chairman is Bustanuddin, and secretary is Arif Rusdinata.

- Advisory Committee of Occupational Health and Safety di SPF POM based on the Decree of Labour and Transmigration Agency Chairman for Musi Rawas District No. 560/400/NAKERTRANS/IV/2009.

Advisory Committee of Occupational Health and Safety meetings are done once every 3 months. Record example: Advisory Committee of Occupational Health and Safety Sungai Pinang Estate meeting on August 13, 2010 was attended by members of the Advisory Committee of Occupational Health and Safety SPE, discussing the Advisory Committee of Occupational Health and Safety stucture after it was formed, although not yet ratified by the Labour and Transmigration Agency; Advisory Committee of Occupational Health and Safety Sungai Pinang Estate meeting on May 7, 2010 was attended by 17 participants, members of the Advisory Committee of Occupational Health and Safety, discussing work accident. However the auditor team found that there were not enough evidence that the organization had reported their Advisory Committee of Occupational Health and Safety activities in accordance with the requirements of Advisory Committee of Occupational Health and Safety validation by Labour and Transmigration Agency; which is why it is advisable to report Advisory Committee of Occupational Health and Safety activities in accordance with the requirements of Advisory Committee of Occupational Health and Safety validation by Labour and Transmigration Agency. Non-conformance of this indicator is CFA-2010.11.

X

S1

S2

S3

S4

Minor

4.7.1 Provision for accident insurance for workers.

PA Work accidents insurance is available for the workers, in forms of: - Employee Social Security: work accident and death insurance (staff and

employees) - Takaful Fulmedicare: hospital treatment insurance (staff)

√

MA There are insurance for employees: Staff Takaful fulmedicare for treatment cost (hospital treatment).

Employee Social Security in form of claims for death, work accidents and retirement fund (employee and staff).

In cooperation with clinic and hospital. The company guarantees employee medical screening costs.

√


S1

S2

S3

S4

4.7.2 Regular health examination by a doctor for workers in station or exposed to high risk work.

PA BSC has done medical screening towards mill workers conducted annually. There are documents of Periodical Medical Screening Result of PT BSC Oil Palm Processing Employees, 2009 Period. The screening was done by UPTD Occupational Health and Safety Division – Labour and Transmigration Agency, South Sumatera Regional government.

√

MA BSC has done medical screening towards mill workers conducted annually. There are documents of Periodical Medical Screening Result of PT BSC Oil Palm Processing Employees, 2009 Period. The screening was done by UPTD Occupational Health and Safety Division – Labour and Transmigration Agency, South Sumatera Province No. 070/28/UPTD/BPH/2009. The screening results specify screened employee names, age, work division, tenure, overall health, and health improvement suggestion. Examples of screening results are as follows: Hasun Anwar, 30 years of age, working in the workshop division with 6 years of tenure, having mild anemia, suggested to have nutrition improvement, and Pujiono, 31 years of age, working in the workshop division with 8 years of tenure, good health, suggested to undergo a low fat diet.

√

S1

S2

S3

S4

4.7.3 A documented risk assessment for Occupational Health and Safety (OHS).

PA There are documents of OHS program risk analysis at each station in the mill in form of Hazard Identification Risk Assessment Control. For instance:

Boiling station; Potential Hazards: steam preessure exposure and steamer door contact; Risk: burns and death; Recommendation: ensuring steam pressure on the manometer is off before the steamer doors are open, using personal safety equipment and working as described in the SOP.

Beating station; Potential Hazard: stuck at the lorry hooks; Risk: bruises or amputated arms; Recommendation: using leather gloves, lorry hooks improments and working as described in the SOP.

Boiler station; Potential Hazard: input pipe clogging in the feed tank; Risk: boiler could explode due to lack of water; Recommendation: doing periodical inspection towards water tanks.

√

MA Similar with the pre-assessment; There are risk analysis documents in form of Hazard Identification Risk Assessment Control document. Each estate unit and mill has composed the HIRAC document for every activity, for instance: spraying, fertilizing, boiler station, etc. Review towards the HIRAC document is done annually.

√

S1


S2

S3

S4

4.7.4 Record of OHS Training.

PA There are records of mill worker training, among them are: Steam engine operator training certificate by the name of Robert M.T.H

dated October 6, 2000

Exemplary Employee Charter for OHS in 2006, by the name of R. Hasibuan, dated January 6, 2007. However the OHS training program has not been presented.

Non-conformance of this indicator is NC-2010.10

X

MA OHS training program is available within the document of Occupational Health and Safety Program and Environmental Health and Protection for July 2010 – June 2011 period, PT BSC. The trainings programmed are: OHS in-house and external training, fire fighting training, oil spill countermeasures, and emergency response simulation. Non-conformance status of NC-2010.10 is declared as closed

√

S1

S2

S3

S4

4.7.5 Accident and emergency prepareness procedure.

PA The organization has composed a prodecure regarding emergency response in form of Emergency Response Procedure document of Sungai Pinang POM, PT BSC. The emergency response steps are as follows:

Emergency situation potential source identification. Planning; developing a system to respond, prevent and handle the potential

environmental impacts in the events of work accident or emergency situations. For instance: hazard sign instalation, providing personal protection equipment, providing emergency response quipments, composing emergency response team.

Countermeasures in the event of work accidents or emergency situations. Recovery from work accidents or emergency situations, for instance: area

inspection, damage inspection due to incident, recovering all infrastructure damaged due to the accident or emergency situation.

X

The organization has provided evacuation spot for emergency situation, however there were no signs around the estate office building and the housing complex to help reach the evacuation spot. Will be verified further on the main assessment phase. Non-conformance of this indicator is NC-2010.10.

MA Emergency response procedure was made and implemented. Evacuation sign are now available, in forms of arrows on each building, directing towards the

√


evacuation spot. Non-conformance status of NC-2010.10 is declared as closed Based on the Occupational Health and Safety Program and Environmental Health and Protection document, emergency response simulation will be conducted in March 2011.

S1

S2

S3

S4

4.7.6 Evidence of OHS and first aid equipments available at worksites.

PA Based on field inspection, mill workers have used personal protection equipment such as helmets, safety shoes and clothes. First Aid boxes are available in easily reached locations, such as mill office, processing office in the mill, estate office.

√

MA OHS and First Aid equipments have been provided by the organization, for instance: personal protection equipment for spray workers, fertilizing workers and mill workers; small fire extinguishers are provided in every building with a potential fire hazard, such as: chemical warehouse, diesel fuel tank and in the mill. First Aid boxes are available in easily reached locations by the workers, for instance: mill labouratory, workshop, and chemical warehouse.

√

S1

S2

S3

S4

4.7.7 Workers trained in first aid should be present in both field and mill operations.

PA There has not been enough evidence that workers have received First Aid training Non-conformance of this indicator is NC-2010.10

X

MA First Aid training was conducted on November 12-13, 2010 which involves nursery division, division head, division assistant, workshop operator, clerk, etc. Minutes and attendance list are available. Non-conformance status of NC-2010.10 is declared as closed.

√

S1

S2

S3

S4


4.7.8 Records of occurrence of any work accidents are maintained and regularly reviewed.

PA There are records of work accidents in form of Work Accidents at Estate/POM Monitoring Document. For instance:

July 2009; accident: overturned tractor; 5 workers injured; accident category: receiving doctor’s order to rest for more than 5 days

September 2009; accident: head wound; 1 worker injured; accident category: receiving doctor’s order to rest for more than 5 days; accident cause: falling off of a motorcycle

November 2009; accident: leg wound; 2 harvesting workers injured; accident category: receiving doctor’s order to rest for 1 - 4 days; accident cause: oil palm midrib thorn. There is a periodical evaluation conducted towards work accident monitoring, in form of document of Occupational Safety & Health Report Sumatera Region, July 2009 - January 2010.

√

MA The organization has conducted work accident monitoring, documented them and keep them well-documented. The monitoring is done as a monthly routine, whenever accidents occurred, they are written on the work accident monitoring form. Monitoring data evaluation is done every semester by the ESH Manager.

√

S1

S2

S3

S4

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

Major

4.8.1 A documented training programme for staff, employee and scheme smallholders in accordance with workers' positions and competence.

PA Could not be presented Non-conformance of this indicator is NC-2010.11

X

MA There is a training schedule for Sungai Pinang Mill for 2010-2011 period. There is a result of employee training needs identification for Sungai Pinang

Mill Unit in 2010-2011 period for all mill, which includes: Managers, Senior Assistants, Assistants, Foremen, machinery operators, drivers, workshop personnel, Advisory Committee of Occupational Health and Safety members, security officers, and warehouse supervisor.

There is a training program for SPE in 2010/2011 period, covering trainings of: chemical potential hazard and damage control, HIRAC and Risk Assessment, work accidents and hazard reporting, Advisory Committee of Occupational Health and Safety function and responsibility, forest and animal conservation, harvesting procedure, spraying and fertilizing, First Aid and simulation, safety driving techniques, pesticide handling, emergency situation countermeasures, hazardous waste management and labelling, MSDS, fire extinguisher usage, workplace inspection, health and hygiene, spraying equipment maintenance and calibration, personal protection equipment training, and vehicle maintenance.

Non-conformance status of NC-2010.11 is declared closed

√


S1

S2

S3

S4

4.8.2 Records of training for each employee are kept.

PA There are records of mill worker training results, among them are:

Steam engine operator training certificate by the name of Robert M.T.H dated October 6, 2000

Exemplary Employee Charter for OHS in 2006, by the name of R. Hasibuan, dated January 6, 2007.

However, not all employee training results are well documented. Non-conformance of this indicator is NC-2010.11

X

MA There are complete records for every employee. The records are the documentation of every training employees have attended. The records are kept in the Human Resources Department at the Pekanbaru office. Non-conformance status of NC-2010.11 is declared as closed

√

S1

S2

S3

S4

4.8.3 Evidence that the company uses experienced or trained contractors.

PA There is a mutual work agreement between PT BSC and CV Mulia Indah Lestari regarding the Canopy Construction at the Diesel Fuel Station No.077/LKL/PT.BSC.SPF/X/2009. Within the contract, the construction requirements of the building, worker health and safety conditions, and emergency situations conditions are all listed. There was no evaluation conducted towards the contractor’s performance. Non-conformance of this indicator is NC-2010.11

X

MA For every contractor whose work is finished, the organization evaluate the contractor’s performance, for instance: work results is in accordance with the specifications given, Personal Protection Equipments for workers. Records example: Work Inspection Minutes BPE/SPK-LKL/IX/10/014 regarding FFB transportation. Non-conformance status of NC-2010.11 is declared as closed.

√

S1

S2

S3

S4


PRINCIPLE #5 ENVIROMENTAL RESPONSIBILITY AND 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 continuous improvement.

Major

5.1.1 Documentation of Impact Analysis.

PA Documentation of Impact Analysis is available in Environment Management Plan and Environment Monitoring Plan at Muara Rakitan Sub District, Musi Rawas District, width area 6,513 hectares, mill capacity20-60 tons FFB/Hour, dated on October 2006. The document approved by the Head of Musi Rawas District no. 128B/KPTS/IV/2007, dated on October 30, 2007. Actual capacity is 30 ton/hour. Scope: PT Bina Sains Cemerlang, width of reserve area as a whole is 24,000 hectares, has been planted with oil palm as many as 6,513 hectares. In 1995 mill has been built with capacity 30 tons FFB/hour (can be increased into 60 tons FFB/hour). The social limit consists of Anyar, Semangus Baru and Sungai Pinang village, Muara Lakitan Sub District, Musi Rawas District - Sumatera Selatan. This revision document is as changes towards the previous Environmental Impact Analysis (EIA) document where liquid waste management through waste pond was drained into the river, while PT. BSC makes use the liquid waste by not throwing them into the river, but for land application.

√

MA The organization has owned the impact analysis document in Environment Management Plan and Environment Monitoring Plan revision documents for Oil Palm estate and mill at Muara Lakitan Sub District, Musi Rawas District, the area is 6,513 hectares, mill capacity 20-60 tons FFB/Hour, dated on October 2006, approved by the Head of Musi Rawas District no. 128B/KPTS/IV/2007, dated on October 30, 2007. The variable capacity was not the real capacity, but it minimum and maximum range which could fulfilled based on the production area. The Actual capacity is 30 ton/hour. Based on the document review and field visit at the time of main assessment, there were additional areas beside the Land Use Rights area (308 hectares) that were still ongoing location license, it was also supported with the document of social and environment impact study result. Non-conformance, which appeared in this indicator at the time of main

assessment, is NC-2010.12 with Minor category.

X

S1

S2

S3

S4


5.1.2 Records of regular report on environment management in accordance with the relevant regulations.

PA The reporting of environment management is available is the form of Implementation Report of Environment management plan (RKL) and Environment monitoring plan (RPL) for PT. Bina Sains Cemerlang, semester II in year 2009, but they haven’t been reported to the related institution. Implementation Report of Environment Management Plan/Environment Monitoring Plan for the period of semester I year 2008 and semester I year 2009, haven’t been made nor reported to the related institutions. The non-conformance in this indicator is NC-2010.12

X

MA As equal to pre assessment, the organization can only show the evidence of records of the Environment Management Plan/Environment Monitoring Plan implementation reports for the semester 2 year 2009 and semester I year 2010; also can’t show that that records has been reported to related institutions. Auditor team has evaluated that the organization was not yet prepare the Environment Management Plan/Environment Monitoring Plan which have been made and should be reported to related institutions periodically (every six months) The non-conformance status of NC-2010.12 at the time of main assessment is stated as open and during main assessment was replaced by NC-2010.13 with

Minor category.

X

S1

S2

S3

S4

Minor

5.1.1 Revision to Environment Management document if there are changes in companies operating area or activities.

PA PT BSC has performed a revision towards the previous Environmental Impact Analysis (EIA) document in year 1994, which was listed that liquid waste management through waste pond was drained into the river, while PT. BSC made use of it by not throwing them into river but using it for plantation land.

√

MA See explanation at major indicator 5.1.1; There weren’t such adequate evidence for additional area outside the Land Use rights (HGU) (308 hectares), which were still in the process of location licensing and supported by the document of social and environment impact study result. The non-conformance in this indicator is NC-2010.12 with Minor category

X

S1

S2

S3

S4

5.2 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.


Major

5.2.1 Records of results of identification of any protected, rare, threatened or endangered species, and HCV habitat.

PA BSC has performed identification to protected, rare, scarce and endangered species and habitat with high conservation value, which was implemented by consultant institution in the month of January 2010. Their types are as follow: Kayu Ara (Ficus fistulosa), Kondang (Picus), Merbulan (Rhodamnia cinerea), Anakan Medang (Aglaia tomentosa), Macan Akar (Felidae), Siamang (Hylobatidae), Beruang Madu (Ursidae), Armadillo (Manidae), Landak (Hytricidae), Monyet Ekor Panjang (Cercopithecidae), Musang (Viverridae), Simpai (Bufonidae), Lutung Kelabu, Beruk (Macaca nemestrina), Burung Raja Udang (Alcedo atthis), Burung Madu (Anthreptes malacensis), Burung Daun (Chloropsis sonnerati), Elang Hitam (Ictinaetus malayanensis), Biawak (Varanus nebulosus), and Kobra (Naja sp).

√

MA Records of identification result of high conservation value area are available in the form of HCVA Identification Report document for PT Bina Sains Cemerlang, which was implemented by independent Consultant Foundation (CV.POLLITO). Areas which were identified as HCV area are as follow: - Pinang, Durian, Selingsing, and Hitam River; with total of river length ± 49.2

km; in accordance with the regulation of Presidential decree no. 32 year 1990, were stated as protected area with 50 meters width at the left and right side of the river or equal with ± 492 hectares. These areas were planted by oil palm since 1991 until 2006. This area was categorized as HCV 1.1, which is area that has or gives biodiversity to protected area or conservation area; There was field checking in Pinang River were used by local community as source of water and for their local society . This area categorized as HCV 4.1 and 5.

- Enclave of BSC area with 365.58 hectares width was in the form of society rubber plants and other forest plants; this area was categorized as HCV 1.2 which is endangered species; and HCV 1.3 which is area as the habitats for the population of threatened, limited distribution or protected species which survive (Viable Population).

- Funeral area (cemetery) with 0.003 hectare width which was categorized as

HCV 6 is an area that has important role for the identity of local community traditional culture.

However, the audit team assessed that there wasn’t enough evidence that the process of public hearing during HCV identification activity has been implemented, participation of NGOs and University have been involved in accordance with the guide of high value conservation areas in Indonesia which was published by Consortium of Indonesian Toolkit HCV revision, June 2008. The non-conformance in this indicator is NC-2010.14 with Minor category.

X

There wasn’t enough evidence that additional areas outside the Land use Rights (HGU) (308 hectares), which inside there were plants areas after November 2005, where Identification of HCV has been implemented, Document of HCV identification owned by the company, was limited to the scope of Land Use Rights study (6,513 Ha). Non-conformance in this indicator is NC-2010.15 with Minor category.

S1


S2

S3

S4

5.2.2 If, rare, threatened or endangered species, or high conservation value habitats are present, appropriate measures to preserve them are to be taken.

PA BSC has acknowledged recommendation from HCV identification result by the consultant institution to the management plan of HCV areas, but the BSC has not made the appropriate planned program in order to protect such areas. Non-conformance in this indicator is NC-2010.13

X

MA BSC has developed some steps to protect areas with high conservation value; records are available in the form of the Management Work Program of HCV Area, PT BSC. Examples of the contents of the program are:

- Management of riparian areas including the installation of a bulletin board, the socialization of the existence of HCV areas, marking the boundary buffer zone with 50 m width to the left and right side of the river; planned monitoring plan including monitoring of wildlife that often appeared in this area.

- Management of the enclave area which covers 365.58 hectares areas done with the installation of warning boards and enriching forest crops in accordance with the types that have been set by the consultants; this area are also planned for the periodic monitoring of wildlife.

Based on field visits, (i.e. Pinang River flow, and Block D7 and E8), the organization has shown the progress of the plan that has been made, for example, installation of warning signs (sign board) in areas identified as areas of HCV 1.1 and 41. On Pinang river, and HCV 1.2 and 1.3 in Block D7 and E8. Until the main assessment activity, the BSC was in the stage of implementing the periodic monitoring to wildlife. So that, the non conformance status of NC-

2010.13 is declared as closed.

√

S1

S2

S3

S4

5.2.3 Measures taken for protecting species and their habitats must be in accordance with relevant laws and included actions to control any illegal or inappropriate hunting fishing or collecting activities.

PA See major indicator 5.2.2. Steps to protect the rare and endangered species and their habitats are not available. Non-conformance in this indicator is NC-2010.13

X

MA See Explanation in major indicator 5.2.2; The non-conformance status of NC-2010.13 declared as closed.

√

S1

S2

S3


S4

Minor

5.2.1 Posters and signs warning of the presence of protected species are to be produced, distributed, and made visible to all workers and the community, including guidelines in handling them

PA Posters and warning boards of the protected species haven’t been made. Non-conformance in this indicator is NC-2010.13

X

MA See the major indicator 5.2.2. Organization has installed some warning boards (signs) in areas, which are identified as HCV area, and until the implementation of main assessment activity, organization was in the stage of socialization to employees and surrounding communities. The non-conformance status of NC-2010.13 declared as closed.

√

S1

S2

S3

S4

5.2.2 Companies are to appoint dedicated and trained officers to monitor any plans and activities as above.

PA Special and trained officer has not been appointed. Non-conformance in this status is NC-2010.13

X

MA The organization has appointed Yasirman to oversee the plan of HCV activity in accordance with the letter of appointment of HCV monitoring officers by Estate Manager No. 001/BSC-RSPO/IX/2010 dated on September 18, 2010, however there was no evidence that those appointed officers have been trained and acknowledged the understanding of HCV concept well. The non-conformance status of NC-2010.13 at the time of main assessment

was declared as closed and replaced by Non-conformance of NC-2010.16 with Minor category.

X

S1

S2

S3

S4

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

Major

5.3.1 All waste and pollutions sources are identified and documented.


PA HIRAC (Hazard Identification Risk Assessment) document for mills is available as the identification of sources of pollution to the environment, which are :

Subtle dusts at the station of Nut, Kernel and Boiler.

Noise sound in the engine room station. The smell of waste at the waste management station. Sound of engine at Nut and Kernel stations.

Therefore, it hasn’t included the sources of waste, such as: used oil, packaging container of chemical materials, etc. Non-conformance in this indicator is NC-2010.09

X

MA The company has identified source of waste, which consist of emplacement/domestic, operational Mill, clinics. The Kind of waste was produced such as used oil, used pesticide packaging, plastic, bottles, organic wastes, wastewater, shells, and fibber. These wastes has been recorded and managed according to the regulation. The result of waste monitoring has been recorded into waste identification document of BSC. Hazardous waste had been stored in licensed store, and then delivered to the licensed receiver Liquid waste was re-used as organic fertilizer. Domestic waste was buried. Records of waste sources identification in the form of waste identification document at PT Bina Sains Cemerlang, which consists of the sources of waste (hazardous waste, domestic, clinics, and mills waste), the type of waste (used filters, used oil, used pesticide packaging, plastic, bottles, organic wastes, wastewater, shells, and fibber), and their management plan (stored in hazardous waste, re-use) The Non-conformance status of NC-2010.09 is declared as closed.

√

S1

S2

S3

S4

5.3.2 Estates and mills waste management and disposal are implemented to avoid or reduce pollution.

PA Waste Management Plan was not available. See major indicator 5.3.1 above Non-conformance in this indicator is NC-2010.09

X

MA Waste management plan is presented in the document of waste identification at PT Bina Sains Cemerlang. See explanation at indicator 5.3.1. The non-conformance status of NC-2010.09 is declared as closed

√

S1

S2

S3

S4


Minor

5.3.1 Management plan of hazardous waste and instruction of disposal of agrochemicals and their containers waste in accordance with the product label and existing regulations.

PA BSC has had the license of hazardous waste storage in accordance with the Decree of the Minister of Environment No. 284 year 2009 on License of Hazardous Waste Storage for PT. Bina Sains Cemerlang dated on June 29, 2009. BSC has made a temporary storage room of hazardous waste which located within the mill area. Work instructions have been made; the recording has also been implemented in the form of Recapitulation of Reception and Usage of used oil (Hazardous Material) document. However the hazardous material management procedure was not yet available. Non-conformance in this indicator is NC-2010.02 and NC-2010.09

X

MA Hazardous waste management procedure is available in the form of Hazardous waste management procedure document, PT BSC, No: 020/BSC-ESH/10. This procedure includes the identification of types: Type of Hazardous waste, stored procedures, monitoring of hazardous waste, as well as the retention time of hazardous waste in temporary storage. Based on field visits, the whole hazardous waste (e.g.: used Oil, diesel filter, packaging of pesticides used) have been collected in a temporary storage area of hazardous waste that has been licensed. Recording of hazardous wastes has also been implemented. The non-conformance status of NC-2010.02 and NC-2010.09 are declared as closed.

√

S1

S2

S3

S4

5.3.2 Records of waste monitoring/analysis.

PA Records of the BOD measures of mill liquid waste which was conducted by Ministry of Environment of South Sumatera Province, consists of:

- The period of June to July 2009, inlet management result 584.8 mg/l, Outlet 437.8 mg/l

- Period of May 2009, Inlet 1,383 mg/l, Outlet 523.4 mg/l - Period of April 2009, Inlet 2,644 mg/l, Outlet 136.2 mg/l

Results of monitoring have been reported to Ministry of Environment of South Sumatera Province; however the evidence of delivery can’t be presented yet.

X

BSC has not been able to show evidence of the reporting of monitoring / analysis records of waste such as BOD relevant agencies periodically in accordance with the applicable regulations. Non-conformance in this indicator is NC-2010.02

MA The organization has conducted the monitoring of waste: BOD liquid waste monitoring, hazardous waste monitoring. All results were in the stage of reported gradually reporting to relevant agencies in the form of report document of the

√


implementation of Environment Management plan (RKL)/Environment Monitoring Plan (RPL). Non-conformance status of NC-2010.02 is declared as closed.

S1

S2

S3

S4

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

Minor

5.4.1 Records of monitoring renewable energy use and its efficiency analysis (energy/ton CPO, or energy/ton palm product). X

PA Records were not available yet. Non-conformance in this indicator is NC-2010.14

MA The organization has provided the records of renewable energy monitoring in the form of document of fibber fuel and shells usage monitoring, Sungai Pinang unit mills, period of January – December 2009 and January – September 2010. Monitoring data was presented in the form of fibber and shells usage as fuel of boiler (ton) and the resulting energy (Kwh/ton of FFB). There is also evidence of its efficiency evaluation. The Non-conformance status of NC-2010.14 is declared

as closed.

√

S1

S2

S3

S4

5.4.2 Records of monitoring of fossil fuels use for operational reason and its efficiency analysis.

PA Records of fossil fuels usage are available, such as: The use of diesel fuel for mill and domestic operations in December 2009, as many as 0.38 litre/KWH (budget 0.2 L/KWH). However its efficiency analysis has not been implemented. Non-conformance in this indicator is NC-2010.14.

X

MA Records of fossil fuels use (diesel) were presented in the document of Fibber and shells fuels monitoring, period of January – December 2009 and January – September 2010. Diesel fuel is recorded in the form of monthly usage (litter). Results of efficiency analysis, which has been made is the use of diesel fuel per month which exceed the predetermined budget; this is because the use of generator tools is longer than the use of turbine. The use of turbine is shorter than generator due to the capacity of processed fruit is not too much, so that the processing activity in mill uses generator more. Non-conformance status of NC-

2010.14 is declared as closed.

√

S1

S2

S3

S4


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.

Major

5.5.1 Documented assessment where fire has been used for preparing land for replanting.

PA BSC has policy not to perform burning in the preparation of land at the opening of new areas and replanting. It is listed in SOP document No. 110/EST-ARM/08. √

MA The organization already has a policy on Zero-burning. √

S1

S2

S3

S4

5.5.2 Records of implementation of zero burning policy.

PA BSC has policy not to perform burning in the preparation of land at the opening of new areas and replanting. It is listed in SOP document No. 110/EST-ARM/08. √

MA The organization already has a policy on Zero-burning. √

S1

S2

S3

S4

5.5.3 Procedures and records of emergency responses to land burning (Tanggap Darurat Kebakaran Lahan).

PA See major indicator 5.5.1 √

MA Land fire emergency response procedures have been made in the form of the document of fire prevention and handling procedures (RSPO/P&C/PPK) No: 014/BC-ESH/10, PT BSC. Steps in standby emergency response are as follow:

Person in charge of Land fires. Procedures of fire prevention. Terms of evacuation routes. Prevention of fire using fire extinguisher. Planning; develop a system for responding, preventing, and addressing the

potential environmental impacts of the accident or emergency situation. For example: the installation of danger signs, provision of PPE, provision of emergency response equipments, the establishment of emergency response team.

Selection which is caused by an accident or emergency situation, such as: checking the area, checking the damage caused by the incident, the restoration of all infrastructure damaged by accident or emergency.

√

S1

S2

S3


S4

Minor

5.5.1 Presence of appropriate fire extinguishers and facilities, depending on the risks assessment.

PA Will be verified further at the time of main activity assessment √

MA Facilities and infrastructure provided by the organization to cope with fires include: a tractor unit equipped with a water tank, hose, nozzle, clothing vests for fire fighting team, and a team of fire fighters. Based on field visits, the audit team asked the firemen to practice how to extinguish land fires based on procedures that have been made, and the audit team considered that the fire brigade has been trained and understand how to extinguish fire properly.

√

S1

S2

S3

S4

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

Major

5.6.1 Evidence of identification of pollution and emissions sources at mills.

PA Evidence of identification to sources of pollution and emissions at mill, which are listed in HIRAC document of Sungai Pinang POM. Among them are:

Boiler Station; potential hazards of subtle dust; the risk of respiratory diseases; recommendation to use PPE, use of conveyor safety belt.

Platform area in Boilers; potential hazards of subtle dust; the risk of respiratory diseases; advice on the use of PPE (masks, goggles, and ear plugs), periodic cleaning of the platform area.

√

MA Records of pollution and emissions sources identification at PT Bina Sains Cemerlang, which consists of waste sources, waste types (boiler smoke, generators smoke, smoke of steam treatment, fumes, road dust, waste odours, noise of turbine engines and generators), as well as the management plan (periodic monitoring every 6 months, the program of machinery maintenance, etc.).

√

S1

S2

S3

S4


5.6.2 Monitoring of pollution and emission quality of the sources identified.

PA Measurements of air and dust are available in the form of Dust and working environment air testing document, in may 2009, at each processing station of fresh fruit bunch (boiled, boiler kitchen, mill fence). Result of measurements showed that in overall, were still below the threshold. (Circular letter of Minister of Labour SE.01/MEN/1997). Noise measurements are available in the form of Noise Test document, in May 2009, at each processing station of FFB (weigh bridge, loading ramp, stew, Tipler, pressing). Result of measurement showed that in overall, it was still below the required threshold. (Decree of the Minister of Labour no. 51 year 1999). Records of monitoring/analysis to air quality and noise haven’t been reported periodically to relevant institution in accordance with the applicable regulations. Non-conformance in this indicator is NC-2010.02

X

MA The organization has implemented periodic monitoring to the quality of air emission and pollution. Monitoring activities were conducted by taking several sampling points to test their level of pollution and emission, for example: mill yard, engine room, generator and turbine and housing yard. Records of air quality monitoring result which was conducted by UPTD Occupational Health and safety and company hygiene agency, Palembang, South Sumatera, for example for the period of March 2010; parameters tested include: gas of CO, SO2, NH3, H2S, HCL, HF, HC, Pb, particulate opacity, dust, noise levels, climate/temperature, also light/lighting. Especially for air emissions, point samples were taken from the boiler flue and generator at the plant. Based on test results it is obtained information that the majority of the tested parameters are within the limits set of the required quality standards (threshold), except for the parameter of noise that exceed the threshold for the generators engine room station and kernel station. Follow-up of parameters that exceed the threshold, the organization provides personal protective equipment for workers in the form of ear plugs, which can reduce noise levels and protect workers from exposure to noise. Results from the quality of air emissions measurement are in the process of reporting to relevant agencies, results of measurement were listed on report document of the implementation of Environmental Management Plan / Environmental Monitoring Plan which were periodically reported to environmental body every six months. The non-conformance status of NC-2010.02 declared as

closed.

√

S1

S2

S3

S4

Minor

5.6.1 Records of efforts and strategies employed to reduce pollution and emissions.

PA Will be verified further at the time of main assessment.

MA The efforts made in reducing pollution and air emissions such as: - It is planned to install a smoke density meter on the boiler station - Cleaning and maintenance of boiler according to schedule, including the

disposal of dust collector ash on a regular basis.

√


- Perform generators engine maintenance according to schedule. - Operators at the stations with high noise level will be given personal

protective equipment which was provided in the form of ear plugs. - Monitoring the quality of air pollution and emission on a regular basis

(every six month).

S1

S2

S3

S4

5.6.2 Records of identification, monitoring, and treatment methodology for POME.

PA Document of Mill effluent land application map which contains the blocks applied, the year of planting, the applied area, the number of flat bed, and layout design of flat bed in the area. The number of flat bed owned by BSC is as many as 7,559 pieces which included in 67 hectares area that were applied. However, the monitoring of POME management is not yet available and not yet reported to the relevant agencies on a regular basis in accordance with applicable regulations. Non-conformance in this indicator is NC-2010.02

X

MA Monitoring of POME management has been carried out; the available records are in the form of Liquid waste (effluent) application report, Sungai Pinang Estate. These records include the amount of effluent (tons), the number of flatbed, and the extent of the area applied with waste water. The non-conformance status of NC-2010.02 is declared as closed.

√

S1

S2

S3

S4


PRINCIPLE #6 RESPONSIBLE CONSIDERATIONS OF EMPLOYEES AND INDIVIDUALS AND COMMUNITIES AFFECTED BY GROWERS MILLS.

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

Major

6.1.1 Documentation environmental and social impact assessment, including details of positive and negative effect that may be caused by plantations and mills, and documented participation of affected parties and local communities.

PA Report of the study to social impacts of Oil Palm management – January 2010 was conducted by POLLITO. The contents of the report consists of 54 pages includes a description 5.2.3 (a) Public perception of the company; and 5.2.3 (b) a negative perception of public towards corporate activities.

The results of the study have been carried out consultation to local residents surrounding that represented by each Head of the village. Detailed information of the impact caused by the activities of oil palm plantations and mills of BSC, the parties affected, and the involvement of affected parties in the preparation of the impact management programs, will be further verified at the time of assessment. During the pre-assessment, there was no personnel of BSC mastered and understood the contents of the appraisal reports.

Non-conformance in this indicator is NC-2010.15

X

MA The Company has conducted and allocated funds for social programs, it's just still a charity and temporary, yet there are no indications that the program is done with plan and directed to refer to the principle of community empowerment. These Social programs conducted do not meet the sustainability community development principle (sustainable community empowerment). The society in general is still expecting the company even greater role in building communities and villages. Stakeholders from local authorities (Department of Forestry and Plantation, Social Service, Health Department, sub district officials and village officials) expect a better and continuous communication between the company and them. Non-conformance status of NC-2010.15 stated as open and at the time of main

assessment was replaced by NC-2010.16 with Minor category.

X

S1

S2

S3

S4


Minor

6.1.1 Regular monitoring and management of social impact, with the participation of local communities.

PA Records of management plans and the social impact monitoring which involve the community, not yet available. BSC has not made a plan of action to follow up the study of social impacts that have been done Non-conformance in this indicator is NC-2010.15

X

MA The Company has conducted and allocated funds for social programs, it's just still a charity and temporary , yet there are no indications that the program is done in a plan and directed to refer to the principle of community empowerment. These Social programs conducted do not meet the sustainability community development principle (sustainable community empowerment). The Company has not involved the community in preparing management plans and monitoring of social impacts. Non-conformance status of NC-2010.15 stated as open and at the time of main

assessment was replaced by NC-2010.17 with Minor category.

X

S1

S2

S3

S4

6.1.2 Results of revision of environmental management document that encompasses social impact assessment in the event there are changes to company’s operational scope, in accordance with existing regulations.

PA Will be verified further at the time of main assessment.

MA The company has already owned revisions of Environmental Management Plan (RKL) and Environmental Monitoring Plan (RPL) for Oil palm estates and mills at Muara Lakitan Sub District, Musi Rawas District with 6,513 hectares which have been approved by the Head of Musi Rawas District on October 30, 2010 No. 128b/KPTS/IV/2007. The company has also conducted the study of social impact of Oil Palm Estate management in the year 2010, which was performed by POLLITO. But as for the new additional area with 308 hectares, there was no analysis study for social and environment impacts. Non-conformance in this indicator is NC- 2010.12

X

S1

S2

S3

S4

6.1.3 A regular and scheduled environmental management and monitoring Report.

PA Not yet available Non-conformance in this indicator is NC-2010.15

X

MA There were not enough evidence of reports of environmental management and monitoring on a regular basis and scheduled. Reports of environment

X


management and monitoring were not completely provided. The company has only owned the documents of Environment Management Plan (RKL) and Environment Monitoring Plan (RPL) report at semester II year 2009 and semester I year 2010. Documents of Environment Management Plan (RKL) and Environment Monitoring Plan (RPL) of previous period were not available. Non-conformance Status of NC-2010.15 stated as open and at the time of main

assessment will be replaced by NC-2010.13 with Minor category

S1

S2

S3

S4

6.1.4 Particular attention paid to the impacts of out grower schemes (where the plantation includes such a scheme).

PA BSC doesn’t have management area with plasma scheme. N/A

MA BSC doesn’t have management area with plasma scheme. N/A

S1

S2

S3

S4

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

Major

6.2.1 Documented procedures and records of communication and consultation with the communities.


X

MA The company has owned the SOP of communication and consultation with the

local community No.006/BSC-KKM/IV/010 dated on April 2, 2009; and SOP of

Local community complains handling No.005/BSC-PKM/IV/09 dated on April 2,

2009.

Since July up to November 2010, the company has accommodated seven local

community complaints, and all of them have been considered and fulfilled by the

company. Non-conformance in this indicator declared closed.

√

S1

S2

S3

S4

Minor


6.2.1 Maintenance of a list of stakeholders.


X

MA PT BSC has owned the list of stakeholders containing name of stakeholders, name

of official staffs, address and telephone number.

Non-conformance status of NC-2010.16 is declared as closed.

√

S1

S2

S3

S4

6.2.2 Records of local communities’ aspiration and responses or follow up actions by companies to these requirements.

PA Records of local community’s aspiration and responses are not available. Based on the interview with the Head of Administration, during this time, aspiration were submitted verbally and not recorded. For example: Request of local community to repair the transportation’s roadwork which crosses Anyar Village approximately 2 km. Request was submitted by Head of the village and the Secretary, further Manager gave instruction to send tractors to the appointed location, which needs to be repaired. During the time of assessment, the company appointed the location of roadwork where maintenance was conducted.

√

MA The company in year of 2010, has documented, accommodated and responded

the aspiration of local community and the handling, as follow:

Giving the assistance of fish cages installation at Pinang Small River.

Fulfilling the request of empty bunch as much as 40 tons to the local

community of Anyar village.

Performing the cleaning of trench at Anyar village

Maintenance of road, office’s route, Village Health Centre at Sukamaju

Village (SP5)

Assistance of trench cleaning and land clearing at Anyar village.

√

S1

S2

S3

S4


6.2.3 A dedicated person responsible for consulting and communicating with local communities.

PA Based on the interview with Estate Manager, Head of Administration and personnel of PSD (Plantation Services Department) Pekanbaru, the company has appointed Ahmad Yani who is responsible for conduct consultation and communication with the community covering the villages around PT. BSC and PT. GPI. His position is at PT. GPI. Visit to PT. BSC is very rare and only when it is requested. Mechanism and effectiveness of consultation and communication with the local community performed by the appointed officer will be verified further at the time of main assessment. During pre-assessment time, Ahmad Yani wasn’t in location. Non-conformance in this indicator is NC-2010.01.

X

MA The company has owned an officer who is given authority to perform consultation and communication with the local community as according to condition and context faced, which is Head of Section Official or Head of Administration at PT. BSC. In addition to that the company has assigned Ahmad Yani (PSD staff) who is in charge of implementing consultation and communication with the local community, which includes villages that reside around PT. BSC (Musi Rawas), PT GPI (Sekayu) and PT BGR (Jambi). Auditor Team evaluated that the affectivity of the special officer performance was not maximum because the scope of working area was too wide. Non-conformance status of NC-2010.01 is stated as open and at the time of main assessment it is replaced by CFA-2010.18 (Comment For Action)

X

S1

S2

S3

S4

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

Major

6.3.1 An open system, which is accepted by affected parties, to receive complaints and to resolve dispute in an effective, timely and appropriate manner.

PA The company (PSD) has shown the draft of flowchart process of the completion of disagreement and objection (including land conflict), but there were no sufficient evidence that the draft has been agreed by all parties, including local society and top management. There was not sufficient evidence that draft of complaint handling procedure has been socialized to all parties, including impacted local community. Non-conformance in this indicator is NC-2010.01

X


MA The company has owned: (a) SOP of communication and consultation with the local community No. 006/BSC-KKM/IV/010 dated on April 2, 2009; (b) SOP of local community complaints handling No.005/BSC-PKM/IV/09 dated on April 2, 2009; (c) SOP of Conflict completion No.007/BSC-PK/I4/2009 dated on April 2, 2009. Based on those owned SOPs, the company has made an effort to deal with and handle all conflicts faced. For types of complaint in year 2010, all were strived to be handled by the company, but as for conflict and land claim has not been solved until now. Based on Total Statement Area Map (Land Use Rights or Non Land use rights) at PT. BSC, it is known at the present that from total area of 6,821 ha, there were 83.5 hectares areas occupied by local community. The non-conformance status of NC-2010.01 is stated as open and at the time of

main assessment will be replaced by the non-conformance of NC-2010.07 with Minor category.

X

S1

S2

S3

S4

Minor

6.3.1 Records of handling of the complaints.

PA From the interview with the head of SPE Administration (Sungai Pinang Estate), it is obtained an information that almost all types of complaints/objection received by the company were only in the form of land claim (objection on overlapped land use), which was handled by PSD personnel by implementing identification on fields, measurements of width and submitted them to PSD Manager at Pekanbaru. Other complaints, such as those related with relevant environment issues, employment, etc. haven’t been received yet. Part of records of land conflict completion is available, for example the land conflict completion in year 2008 at Block K-43, K-44, an K-45 of SPE (Sungai Pinang Estate), in the form of results of identification and measurement, mapping and agreement of compensation. But the chronology for each land claim process started from claim submission by the parties, negotiation process until agreement, has not been fully documented. Non-conformance in this indicator is CFA-2010.17

1

MA Refer to owned SOPs, the company has documented and response all types of complaints/objection faced. As related to land conflict, the company has also documented the resolution of compensation and destroyed plants in year 1990-1999, 2003 and 2008. The company has also accommodated and handled all types of complaints/objection from local community and performed follow up action in order to overcome those complaints/objection. The non-conformance status of CFA-2010.17 at the time of Pre Assessment is declared as closed.

√

S1

S2

S3


S4

6.3.2 Procedures for the identification and calculation of fair compensation for the loss of legal or customary right of the land, with the involvement of local community representatives and relevant agencies and made publicly available.

PA Procedure to identify and calculate fair compensation was not available yet. Non-conformance in this indicator is NC-2010.01

X

MA The company has identified and calculated fair compensation as according to agreement with community/parties who performed claim and compensation demands. Non-conformance status of NC-2010.01 at the time of Pre Assessment is declared as closed.

√

S1

S2

S3

S4

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

Major

6.4.1 Procedures for the identification, calculation and compensation for the loss of legal or customary rights of the land, with the involvement of local community representatives and relevant agencies.

PA Procedures to identify the existence of legal and traditional rights, which involve representative of society and relevant agencies, are not available. Non-conformance in this indicator is CFA-2010.17

X

MA The company has owned the SOP of mechanism and effectively evaluation towards the loss of legal and traditional rights on land No.009/BSC-PK/IV/2009 dated on April 2nd, 2009. The units in charge of this procedure implementation are Management Unit Operational, Head Department and relevant departments at Minamas Plantation. Based on result of interview with the Head of Muara Lakitan Sub District, The sub district will give full support to procedures and process implemented by the company in resolving conflict of land and compensation in accordance with the applicable regulations. Non-conformance status of CFA-2010.17 Pre Assessment is declared as closed.

√

S1

S2

S3

S4

Minor

6.4.1 Records of identification of people entitled to receive compensation.


PA The organization has been able to show records of parties who receive compensation of claim for land, which located within the area of estate at block 43, 44, and 45.

√

MA The company has documented the recapitulation of compensation and plants to grow in area of Sungai Pinang estate at period of 1990 up to 1999 which includes the area of 4,945.823 Hectares as many as 884 plots, total of compensation as much as IDR 1,640,762,010 with legalization and administration fee as much as IDR. 104,284,052. Recapitulation of compensation budget of PT. BSC period of November 2003 which includes the area with 230.04 hectares with total of compensation as much as IDR 440,985,000,-. The company has been able to show some evidence of land acquisition resolution in the form of minutes of compensation and payment receipt, for example Minutes of compensation for an area of 66.76 ha to eightAnyar villagers in the year 2008 at block 39 and 40, who are Arba'a, Baiduri, Cek Aleh/Kuripto, Cik Mun, Goni/Hasbullah, Madian Mesih, Sugian, and Syarkowi.

√

S1

S2

S3

S4

6.4.2 Records of negotiations processes and/or the details of compensation settlements.

PA Records of negotiation process can’t be shown yet. Non-conformance in this indicator is CFA-2010.17

X

MA One of the examples of negotiation records and result of compensation agreement was a statement letter dated on November 17, 2003, which was signed by the Head of Sungai Pinang village, Sungai Pinang BPD, Anyar BPD and acknowledged by Head of Muara Lakitan sub district, that: (1) Area of community of Sungai Pinang village and Anyar village which are located at Sawah Lebar area and within PT BSC location is no longer left or remained, all are already measured. (2) With the measurement of Sawah Lebar area inside of PT. BSC’s location, Sungai Pinang Estate area has been implemented, so all communities related are no longer have rights to demand for compensation and statement letter which was made by local community, related government and PT. BSC and PT Lonsum is stated as expired and no longer valid. Non-conformance status of CFA-2010.17 Pre Assessment is declared as closed.

√

S1

S2

S3

S4

6.4.3 Records of the implementation of compensation payment.

PA All evidence has not been able to be showed yet. Compensation payment is available at block 43, 44, and 45. Non-conformance in this indicator is CFA-2010.17

X


MA The company has owned documentation of compensation payment for year 1990-1999, 2003 and 2008. The company has also documented the recapitulation of compensation and destroyed plants in area of Sungai Pinang estate at period of 1990 up to 1999 which includes the area of 4,945.823 Ha as many as 884 plots, total of compensation as much as IDR 1,640,762,010 with legalization and administration fee as much as IDR. 104,284,052 Recapitulation of compensation budget of PT. BSC period of November 2003 which includes the area of 230.04 hectares with total of compensation as much as IDR 440,985,000. The company has been able to show some evidence of land liberation completion in the form of minutes of compensation and payment slip, for example Minutes of compensation for land with 66.76 hectares width to 8 of Anyar Village citizens at year 2008 at block 39 and 40. Non-conformance status of CFA-2010.17 Pre Assessment is declared as closed.

√

S1

S2

S3

S4

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.

Major

6.5.1 Documentation of employees’ pay rates

PA Payroll of employee’s wages for employee (non-staff) which informs name of employee, basic wages and benefits received (including social security) are available.

√

MA Payroll of employee’s wages for employee (non-staff) which informs name of employee, basic wages and benefits received (including social security) are available. There is also a memorandum from HRM General Manager No. 043/HRM-13/I/2010 dated on January 19, 2010 stating that the daily and monthly Work Effort Units (SKU) wages is as much as IDR 1,038,000. Salary of employees will be reduced as much as IDR 41,520 for absence without prior notice. The employees have getting salary according to Regional Minimum Standard 2010 (IDR 927,825), South Sumatra Province. And also the company gave incentive and social assurance.

√

S1

S2

S3

S4


6.5.2 A company working regulations and work contracts, in accordance with existing regulations

PA BSC has 2 types of Collective Labour Agreement, namely:

1. Collective Labour Agreement that applies to employees (Daily and monthly Work Effort Units (SKU) employees) agreed between Sumatra Plantation Company Cooperation Agency (BKS-PPS) with the Central Board of Federation of Agriculture and Plantation Workers Unions – Indonesian Labour Union (PP-FSPPP-SPSI) in 2008. Stipulated by the Directorate General of Industrial Relations Development and Employee’s Social Security No. KEP.75/PHIJSK/PKKAD/2008 dated on July 10, 2008 – validity period of July 10, 2008 – July 9, 2010; and

2. Collective Labour Agreement that applies to level of staff (Officer), which was Collective Labour Agreement in year 2007-2009 which agreed by the Company (Minamas Group) and representative of employee dated on January 25, 2007. Both CLAs have been expired and all parties related with CLA are still negotiating a new CLA ratification.

Non-conformance in this indicator is CFA-2010.18

X

MA Until the time of assessment implementation, Collective Labour Agreement for year 2010 – 2012 is still in the process of ratification in Jakarta. Centre of Minamas Plantation has appointed CLA’s socialization Team for period of 2010 – 2012, which was acknowledged by Hero Djajakusumah, HRM General Manager on October 27, 2010. Will be verified further at the time of main assessment. Non-conformance status of CFA-2010.18 is declared as closed.

√

S1

S2

S3

S4

Minor

6.5.1 Growers and millers provide adequate housing, water supplies, medical, educational, and other facilities for employees where such facilities are not available or accessible.

PA In accordance with CLA in year 2007-2009: - Article 49: The company provides facility of service of vehicles to staff at level F until D and non-staff employee (mail carrier) who works at headquarters. The company provides housing for all employees, lights, water supply, education facilities (1 unit kindergarten for each cottage; 1 Elementary School unit in the Division 2 SPE, 1 junior high school unit in the Division-2 SPE), Clinics in each Division (BPE), central clinic for the SPE, a unit of the School Bus for each estate, religious facilities (1 unit for each Division).

√


MA Based on field visit (Housing complex at Sungai Pinang Estate) noted that the company provided a semi-permanent housing facility with supporting facilities such as toilets which are not sufficient and the physical condition of the housing that already damaged, but according to company budget, the development of employees housing will be implemented in year 2011. For clean water facility, each house has a well as a source of clean water and in hot season, the company provides wells, which are equipped with pumps, water reservoir and pipelines. At each house also provided a garbage dump made from old packaging paint bucket so that the housing hygiene is maintained. There is also a mechanism to facilitate complaints of employee on housing to company delivered through foreman 1.

√

S1

S2

S3

S4

6.5.2 Agreements entered into with contractors are to specify that contractors abide by labour laws.

PA Contractors only are for harvesting, transportation, heavy equipments (maintenance of road, Land Clearing). The company has required contractor to meet manpower regulation. The requirement listed on the work agreement article 3 and 7. The contractor must consent about employees’ safety and health. for example: (1) Local Work Agreement (SPK) No. BPE/SPK-TBS/GPF/VII/09/009 dated on July 14, 2009 for FFB transportation work between PT. BSC and Antoni Irwadi. (2) Local Work Agreement BPE/SPK-BRG/VIII/09/025 dated on August 1, 2009 between PT. BSC and Leo on harvesting work. The Local Work Agreement stated that all contractors had to comply on health and safety working condition as said on article 3 paragraph 3.019 of work agreement.

√

MA Contractor personnel are used to transport the work pieces, leases heavy equipment for road maintenance, ditch and drainages. Agreement with the contractor required the contractor to wear personal protective equipments, registered as the member of Employee Social Security, and supervisor. For example, as listed on Local Work Agreement (SPK) No: BPE/SPK-BRG/VII/10/004 on behalf of Rudi Hartono, shredding, harvesting path and plate jobs. However, there are agreements / contracts that do not require contractors to comply with regulations, for example SPK BPE/LKL/IX/0/14 on FFB transportation occupations.

X

S1

S2

S3

S4

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.


Major

6.6.1 Documented company policy recognizing freedom of association.

PA Recognition of Company towards the worker association, stated in CLA 2007-2009 Article 8 paragraph 1: "Employers recognize that the Labour Union is a legitimate labour organization in representing and acting on behalf of all workers who become members and have relationships with employers as equal partners". However, there was no policy or statement showing that the company gives freedom to workers to form an association. Non-conformance in this indicator is CFA-2010.18

X

MA Recognition of the company to give freedom to workers to form an association is listed on Social Policy No. Policy 724/TQEM-SPM/09. Listed also in CLA 2007 – 2008 Article 8 paragraph 1: "Employers recognize that the worker association is a legitimate labour organization in representing and acting on behalf of all workers who become members and have relationships with employers as equal partners". The company has been able to show improved draft of CLA for year 2010 – 2012, which has been prepared in Jakarta. Non-conformance status of CFA-2010.18 Pre Assessment is declared as closed.

√

S1

S2

S3

S4

Minor

6.6.1 Documented Minutes of Meeting with Any Labour Union (if any)

PA Not yet shown. X

MA Records of meeting between Indonesian Labour Union and the company on November 4, 2010 are available. Agenda of the meeting was to discuss changes in working day to holiday for the date of November 5, 2010.

√

S1

S2

S3

S4

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

Major

6.7.1 Documented company policy on worker age requirement, in accordance with national laws.


PA Act 13 year 2003 specifically defined a minimum age of employment is 18 years old or already married. It has been adopted by the BSC which boldly set forth in CLA Article 16, paragraph 1.2.2 where the minimum worker’s age requirement is 18 years old at the time of admission, or already married. The policy is also contained in BPE Manager memorandum BPE/EM-Int/069/XI/2006 dated on November 04, 2006 on Female Workers and Children under age. Point 1: Division Assistant, Head of Section and Traction Assistant are not justified to accept/employ children under age.

√

MA There is a policy regarding worker’s minimum age according to Act No. 12 year 2003 as stated in BPE Manager memorandum No. BPE/EM-Int/069/XI/2006 dated on November 04, 2006 on

√

S1

S2

S3

S4

Minor

6.7.1 Records of implementation of company policy on worker age requirements.

PA The company has not been consistently pursuing the policy of minimum worker’s age requirements in accordance with Act No. 13 year 2003 and Collective labour Agreement, which is 18 years old. It can be proved from the announcement of job vacancy for Fruit-Cut personnel it was listed requirement of minimum age of 17 years old. Non-conformance in this indicator is NC-2010.19

X

MA The company has published a memorandum of PJS of BPE Manager 03/BPE/BSC/III/2010 regarding the changing minimum age for harvester which previously required a 17 years old minimum age. Minimum age for all applicants is 18 years old or already married. The company adopted local regulation act 13 about man power. Non-conformance status of NC-2010.19 is declared as closed.

√

S1

S2

S3

S4

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.

Major

6.8.1 A documented equal opportunities policy.


PA One of the company's anti-discrimination policy set forth in the CLA Article 16 (2007-2009): Recruitment of Workers, paragraph 1.2 General Requirements, which must be met in the Recruitment of candidates did not mention race, caste, religion, disability, gender, sex, union membership, and political affiliation. However one of the items still required the candidate’s nationality as “Citizen of Indonesia”. Non-conformance in this indicator is NC-2010.20

X

MA Social Policy No. Policy 724/TQEM-SPMS/09 point 1 regarding non-discrimination on race, degree, ethnic, gender, skin colour, imperfections disability, sexual orientation, membership organizations, political views, religion and age. CLA article 16 (2007-2009) is a limitation for citizen in order to protect local workers applied for Group D (Senior Manager), E (Manager), F (Senior Assistant) and G, H (Assistant of estate, mill and Head of Administration). The non-conformance status of NC-2010.20 Pre Assessment is declared as

closed.

√

S1

S2

S3

S4

Minor

6.8.1 Evidence of equal treatment in working opportunities for workers.

PA There is evidence of jobs provision in the form of job vacancy; however some requirements are not in accordance with the CLA 2007-2009 article 16. For example, job vacancy for nurse and harvester. Requirement for fruit-cut employee, point ‘a” stated that: Minimum age is 17 years old and Maximum 35 years old.

√

MA Document reviewed showed that the company give equal treatment in working opportunities for community. In the worker list, workers come from different district and can be worked in BSC, Such as Bustomi (South Sumatera), Daryatun Midi (Central Java) and Ahmadi (East Java).

√

S1

S2

S3

S4

6.9 A policy to prevent sexual harassment and other forms of violence against women and to protect their reproductive rights are developed and applied.

Major

6.9.1 A documented company policy on sexual harassment and violence.


PA Company policy on the prevention of sexual harassment and violence set forth in the CLA Staff 2007-2009 Article 30 Sections; paragraph 2.4.4 Phase IV Violation gets third Warning Letter and the last, if: conduct immoral activities such as adultery, affair or gambling attack, persecute, threaten, or intimidate co-workers on the working area; .

√

MA There is a company policy on the prevention of sexual harassment and violence set forth in the CLA Staff 2007-2009 Article 30 Sections; paragraph 2.4.4 Phase IV Violation Gets Third Warning Letter and the last, if: conduct immoral activities such as adultery, affair or gambling attack, persecute, threaten, or intimidate co-workers on the working area; . Based on interviews with Sprayer Team at Block C13, socialization effort of sexual harassment prevention policy to employees is considered less effective so it needs to be improved. Non-conformance in this indicator is NC-2010.19.

X

S1

S2

S3

S4

6.9.2 A documented company policy on the protection of reproductive rights.

PA CLA 2007-2009 Article 33 Break for Pregnancy and Miscarriage: Female workers can have maternity leave and received full wages for 1.5 month before and 1.5 month after giving birth. Article 34 paragraph 1.6. Female workers might be granted permission to leave work for 2 days with full wages due to menstruation.

√

MA CLA 2007-2009 Article 33 Break for Pregnancy and Miscarriage: Female workers are entitled to have a break and received full wages for 1.5 month before and 1.5 month after giving birth. Article 34 paragraph 1.6. Female workers might be granted permission to leave work for 2 days with full wages due to menstruation There is also memorandum of the Chairman of SOU Sungai Pinang No. BSC – Int/0018/XI/10 regarding the treatment of female workers, which include the granting of menstruation, pregnancy and maternity leaves.

√

S1

S2

S3

S4

Minor

6.9.1 Evidence of implementation of sexual harassment policy.

PA Evidence of sexual harassment prevention policy implementation including the existence of gender committee. X


MA To accommodate the policy of sexual harassment prevention, then BSC gender committee was formed, chaired by Rumiati and Vice Chairman is Emilia. On November 20, 2010, there was a meeting with female workers regarding the socialization of sexual harassment policy, which was attended by 22 participants at Bukit Pinang estate. Thereafter, there was also a socialization, which was conducted on November 6, 2010, which was attended by 15 participants.

√

S1

S2

S3

S4

6.9.2 Proof of implementation of reproductive rights policy.

PA Evidence of the implementation of maternity leave, on behalf of the Sri Mulyani (Plant Maintenance) with payment of full wages according to the applicable provisions; Based on the Certificate of Birth No. 013/BPE/KIK/IX/2009 September 12, 2009, Sri Mulyani has carried out on leave since June 26 to September 26, 2009 (List of Monthly Attendance, 2009).

√

MA Evidence of the implementation of maternity leave, on behalf of the Sri Mulyani (Plant Maintenance) with payment of full wages according to the applicable provisions; Based on the Certificate of Birth No. 013/BPE/KIK/IX/2009 September 12, 2009, Sri Mulyani has carried out on leave since June 26 to September 26, 2009 (List of Monthly Attendance, 2009). Based on interview with Rismiati (Spray Worker), pregnant and lactating women are not allowed to work as a sprayer but they will be diverted to maintenance work.

√

S1

S2

S3

S4

6.9.3 Specific grievance mechanism is available.

PA CLA 2007-2009 Article 58, the resolution of complaints, paragraph 1: Any complaints or grievance come from workers are tried to be solved between workers and their supervisor. Paragraph 3: if it is unresolved, complaints may proceed through Labour Union.

√

MA CLA 2007-2009 Article 58, the resolution of complaints, paragraph 1: Any complaints or grievance come from workers are tried to be solved between workers and their supervisor. Paragraph 3: if it is unresolved, complaints may proceed through Labour Union.

√

S1

S2

S3

S4

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


Major

6.10.1 Current and past prices paid for FFB shall be publicly available.

PA Based on the reception data of FFB in the POM, it is proved that PT. BSC didn’t have plasma and didn’t buy the FFB from local community. FFB production data from estate and the reception of FFB at mill in the period of 2009 will be verified further at the time of main assessment to ensure there is no reception of FFB from outside (the farmers).

N/A

MA There was no plasma scheme in this unit. N/A

S1

S2

S3

S4

6.10.2 Pricing mechanisms for FFB and inputs/services shall be documented (where these are under the control of the mill or plantation)

PA See Major indicator 6.10.1 N/A

MA There was no plasma scheme in this unit. Pricing Mechanism for contractor has been agreed by all parties and also that is covered in Mutual Agreement documents, Such as SPE/SPK/BRG/7/2010/026 for manual weeding and planting. That contracts covered salary if the contractor has finished. They would be paid IDR 612,000/ha for manual weeding, IDR Planting IDR 7,140/tree.

N/A

S1

S2

S3

S4

Minor

6.10.1 Evidence shall be available that all parties understand the contractual agreements they enter into, and that contracts are fair, legal and transparent.


MA No plasma scheme The company and contractor agreed the contractual agreement they enter into. There was the agreement 077/LKL/PT BSC SPF/X/2009 for roof construction, that contracts are sign each other by fair and transparent. And also agreement SPE/SPK/BRG/7/2010/026 for manual weeding and planting. That contracts covered salary if the contractor has finished. They would be paid IDR 612,000/ha for manual weeding, IDR Planting IDR 7,140/tree.

N/A

S1

S2

S3

S4

6.10.2 Agreed payments must be made in a timely manner.



MA No plasma scheme N/A

S1 The company and contractor agreed the contractual agreement they enter into. There was the agreement 077/LKL/PT BSC SPF/X/2009 for roof construction, that contracts are sign each other by fair and transparent. And also agreement SPE/SPK/BRG/7/2010/026 for manual weeding and planting. That contracts covered salary if the contractor has finished. They would be paid IDR 612,000/ha for manual weeding, IDR Planting IDR 7,140/tree. There was bank voucher or receipt in order to Bayu Samudera (07/02/2011) IDR 1,138,500 for sand supplying. He has been paid after finished.

S2

S3

S4

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

Minor

6.11.1 Records of company’s contribution to the local development.

PA There is verbal information related to the company's contribution to the surrounding community, among others: provision of qurban animal, the construction of religious facilities, and maintenance of road at Anyar Village. However, there wasn’t enough evidence that it has been documented and can be shown. Non-conformance in this indicator is CFA-2010.21

X

MA The company gives contribution to local development through CSR program, such as Diploma Scholarship Education at IPB and facilities of IPB student apprenticeship at location of plantations and mills. The value of a company's CSR assistance since 2001-2008 is IDR 1,280,258,396 which includes maintaining the roads and ditches cleaning, the village gate and mosque construction, “qurban” animal aid, aid for flood victims, village anniversary activities, assistance to the Kodim and local governments, etc. The preparation of CSR is still a charity and does not consider the identification of community needs aimed at local communities. In addition the company also pays regular taxes and retribution in accordance with applicable regulations. Corporate tax payment data are documented in the head quarter in Jakarta. Based on the description above CFA-2010,21 declared as closed, and replaced by the non-conformance of CFA-2010.20

X

S1

S2

S3

S4


PRINCIPLE #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 existing ones, and the results incorporated into planning, management and operations.

Major

7.1.1 Social and environmental impact assessments (AMDAL), which include details of both positive and negative social and environmental impacts, made with the participation of affected parties (local communities).

PA EIA Document No. 128.b/Kpts/IV/2007 dated on October 30, 2007, but has not included the addition of 308 hectares. See major indicator 5.1.1 and 6.1.1 Non-conformance in this indicator is CFA-2010.22

X

MA Based on the company data, the new addition area of 308 hectares are included in area of 24,000 hectares, which has been assessed through the EIA in year 1994. But the assessment of social and environmental impact analysis for an additional area of 308 hectares has not been done if the document refers to the Revised Environmental Management Plan (RKL) and Environmental Monitoring Plan (RPL) of oil palm estates and processing mills of PT BSC in the area of 6,513 hectares in 2006 which was approved by the environmental body of Musi Rawas District on October 30, 2007 No. 128b/KPTS/IV/2007. Non-conformance status of CFA-2010.22 is stated as open and replaced by the non-conformance NC-2010.12 Minor category.

X

S1

S2

S3

S4

Minor

7.1.1 Appropriate management plan and operational procedures (RKL/RPL).

PA Not yet available Non-conformance in this indicator is CFA-2010.22

X

MA See Major 7.1.1 The documents of the results of environment and social impact assessment for additional area besides 308 hectares Land Use Rights (HGU) area. Non-conformance status of CFA-2010.22 is stated as open and replaced by non-conformance NC-2010.12 with Minor category at the time of main assessment.

X

S1

S2

S3

S4


7.1.2 Where there are schemed smallholders, records of development program for smallholders are kept, in accordance with the scheme and relevant laws.

PA Not applicable. BSC does not apply the plasma scheme. N/A

MA Not applicable. BSC does not apply the plasma scheme. N/A

S1

S2

S3

S4

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

Major

7.2.1 Results of land surveys to determine suitability of soil are to be provided, including information on topography, climate, soil type, soil fertility, water table depth and drainage.

PA Not yet available. See major indicator 4.2.1. Non-conformance in this indicator is CFA-2010.22

X

MA See Minor indicator 4.2.1 Document of results of soil analysis owned by BSC has not sufficiently explain the analysis of soil fertility based on soil sampling at the location of an additional area of 308 hectares. Non-conformance status of CFA-2010.22 is stated as open and published. New

non-conformance at the time of main assessment is NC-2010.12 with Minor category.

√

S1

S2

S3

S4

Minor

7.2.1 Evidence that plantations are developed in accordance with the suitability of the land.

PA Not yet available. Non-conformance in this indicator is CFA-2010.22

X

MA The company has been able to show the results of soil analysis activities in soil document of PT. BSC Plantation, Sungai Pinang and Bukit Pinang Estate. This document includes a series of soil, slope class, map symbols, an explanation of land series, area. New additional area is of 308 hectares, including reserve area which covers 24,000 hectares which has been assessed through EIA in year 1994. Development of estate based on soil type. Soil analysis document which owned by BSC has not sufficiently explain the analysis of soil fertility based on soil sampling at the location of additional area of 308 hectares. Non-conformance status of CFA-2010.22 stated as open and non-conformance published at the time of main assessment is NC-2010.12 with Minor category.


S1

S2

S3

S4

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

Major

7.3.1 New plantings within Nov 05 and Nov 07 must be in compliance with existing regulatory requirements that relate to social and environmental impacts management, and with the legalized land spatial planning.

PA Based on data of planting years, there were 194 hectares of planted area in year 2005. See criteria 2.1 and major indicator 5.1.1 Non-conformance in this indicator is CFA-2010.22

X

MA There has been no enough evidence that HCV identification of additional area outside Land Use Rights (HGU) (308 ha) which included planting areas after November 2005 have been carried out; documents of HCV Identification owned by the company are only within the scope of the Land Use Rights (HGU) area study boundaries (6,513 Ha). The organization must provide evidence that HCV identification of additional area outside Land Use Rights (HGU) (308 ha) have been carried out. Non-conformance CFA-2010.22 is declared Open, and during

main assessment has changed with NC-2010.15 with Minor category

X

S1

S2

S3

S4

7.3.2 Maps showing plan and realization of land clearing in accordance with HCV identification.

PA Identification of HCV has been implemented in year 2009. The company has not shown the evidence that the opening of the new area (See Major Indicator 7.3.1) has considered the results of HCV Identification. Non-conformance in this indicator is CFA-2010.22

X

MA See major indicator 7.3.1; Organisation has not been provided a document of HCV Identification on new development area (308 ha), thus it has not been available a map showing plan and realization of land clearing in accordance with HCV identification. Non-

conformance CFA-2010.22 is declared Open, and during main assessment has

changed with NC-2010.15 with Minor category

X

S1

S2

S3

S4


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

Minor

7.4.1 Maps identifying marginal and fragile soils, including excessive gradients and peat soils, should be available.

PA Not yet identified. See criteria 4.3 Non-conformance in this indicator is NC-2010.07 X

MA There are land maps included in the documents of PT Bina Sains Cemerlang Plantation, Sungai Pinang and Bukit Pinang Estates. The map describes the soil series (soil type), slope classes and the area; including new development area (308 ha). Non-conformance status NC-2010.07 is declared as closed.

√

S1

S2

S3

S4

7.4.2 Where limited planting on fragile and marginal soils is proposed, plans shall be developed and implemented to protect them without incurring adverse impacts.

PA Not yet available. See minor indicator 7.4.1 Non-conformance in this indicator is NC-2010.07

X

MA Some of the new development area (308 ha) have been planted with oil palm; and some existing area were planted on slope area. The strategy of planting on sloping land has been done well, for example: the making of horse shoe, silt pit, and preparation of the U-shaped midrib frond stacking, Nephrolepis and Vertiver planting. Non-conformance status NC-2010.07 is declared as closed.

√

S1

S2

S3

S4


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

Major

7.5.1 Social and environmental impact assessment document which include analysis of both positive and negative environmental and social impacts, and made with the participation of affected parties.

PA See major indicator 5.1.1 and 6.1.1 Non-conformance in this indicator is CFA-2010.22

X

MA The Company has not conducted an analysis of social and environmental impact analysis that includes the positive and negative aspects of social and environmental aspects in a new planting area covering 308 ha. Non-conformance in this indicator is CFA-2010.22 stated as open and replaced by the non-conformance of NC-2010.15 with Minor category.

X

S1

S2

S3

S4

7.5.2 Documented socialization programs prior to new plantings.

PA Not yet available. Non-conformance in this indicator is CFA-2010.21

X

MA The company has asked the measurement of 308 hectares area, which measured by National Land Agency and obtained a picture of situation for the area. Related to that, the company has coordinated with stakeholders regarding the opening of that new area. Non-conformance status of Pre Assessment CFA-2010.22 is declared as closed.

√

S1

S2

S3

S4

7.5.3 Proof of payment to land owners and proper handing-over of the land for new plantings.

PA See major indicator 2.2.3; minor 2.2.4; and minor 6.3.3 Non-conformance in this indicator is CFA-2010.22

X

MA The company has conducted the process of compensation on an area of 308 hectares in year 1997 and 1998. Non-conformance status of Pre Assessment CFA-2010.22 is declared as closed.

√

S1

S2

S3

S4


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

Major

7.6.1 Documented identification and assessment of customary and legal rights with the involvement of relevant government agencies and local communities.

PA See criteria 2.3 and 6.4 Non-conformance in this indicator is CFA-2010.22

X

MA The Company has conducted the identification and compensation process by involving the local government and communities. Non-conformance status of Pre

Assessment CFA-2010.22 is declared as closed. √

S1

S2

S3

S4

7.6.2 Procedures to identify people entitled to receive compensation.


X

MA The company has done identification to parties who receive compensation based on facts in field, which is the cultivation of land in area of 308 hectares. Non-conformance status of Pre Assessment CFA-2010.22 is declared as closed.

√

S1

S2

S3

S4

Minor

7.6.1 Records of negotiation process and/or compensation settlements are available.


X

MA The company has an agreement of compensation to 25 persons in 1998 (on behalf of Rustam, Yusuf, Sardika, Elyas, Balakia, Erlan, Hartawan, Jemaat, Ibrahim, Ahmad Nuh, Epot Nuris, Samaan, Saman Arifin, Heriyanto Uju, Ahmad Cilid, Suaka Acon, Zuli, Rausmawi Acon, Damiri, Samaula, Dungcik, Somad, Ibrahim Rozali) with total area of 224.04 Hectares and 1 person with an area of 83.41 hectares on behalf of Hartawan Yazid in year 1997. Non-conformance status of Pre Assessment CFA-2010.22 is declared as closed.

√

S1

S2

S3

S4


7.6.2 Documentation of calculation and payment for compensation.


X

MA The value of compensation or loss payments in 1997 for Hartawan Yazid is as much as IDR 29,193,500 and in the year of 1998 is as much as IDR 189,499,250 to compensate the area of 224.04 hectares owned by 25 persons. Non-conformance status of CFA-2010.22 Pre Assessment is declared as closed.

√

S1

S2

S3

S4

7.6.3 Communities that have lost access and rights to land for plantation expansion are given opportunities to benefit from plantation development.

PA Not yet available. Will be verified further at the time of main assessment. Non-conformance in this indicator is CFA-2010.22

X

MA Based on information obtained by PSD staff, the company has conducted the survey of community who have access (as arable land) in the area that utilized by the company for the expansion of plantation in an area of 308 Hectares. They still have the opportunity to get benefits of the development of plantations managed by PT BSC through social empowerment programs. Non-conformance status of

Pre Assessment CFA-2010.22 is declared as closed.

√

S1

S2

S3

S4

7.6.4 The process and outcome of any compensation claims should be documented and made publicly available.

PA Some evidence of compensation has been able to be demonstrated; however it is not available for the public. Non-conformance in this indicator is -2010.22

X

MA The company has documented the process and results of handling compensation claims in 1998 with the policy that the document can be accessed by certain parties if there are interests which can be reliable. Non conformance status of Pre

Assessment CFA-2010.22 is declared as closed.

√

S1

S2

S3

S4

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

Major


7.7.1 Documented assessment where fire has been used for preparing land for planting.

PA See criteria 5.5 √

MA BSC has zero burning policy in the preparation of land at the opening of new areas and replanting. It is listed in the document of SOP 110/EST-ARM/08.

√

S1

S2

S3

S4

7.7.2 Records of implementation of zero burning policy.


MA BSC has a policy to not set fire (combustion) in the preparation of land at the opening of new areas and replanting. It is stated in the document of SOP 110/EST-ARM/08.

√

S1

S2

S3

S4

7.7.3 Procedures and records of emergency responses to land burning (Tanggap Darurat Kebakaran Lahan).


MA Procedure of land fire emergency response has been made in the form of document of fire prevention and handling (RSPO/P&C/PPK) No: 014/BC-ESH/10, PT BSC. Steps in emergency preparedness are as follow:

Person in charge of land fire Procedure of fire prevention. Terms of evacuation routes. Prevention of fire using fire extinguisher. Planning: to develop a system for responding, preventing and handling

environmental impacts which are potential for accident or emergency condition. For example: Installation of danger signs, provision of PPE, provision of emergency response equipments, establishment of emergency response team.

Selection of an accident or emergency, such as: checking the area, checking the damage caused by the incident, the restoration of all infrastructures damaged by accident or emergency.

√

S1

S2

S3

S4

Minor

7.7.1 Presence of appropriate fire extinguishers and facilities, depending on the fire risks.

PA It will be verified further at the time of main assessment activities. √


MA Facilities and infrastructure provided by the organization to cope with fires include: a unit of tractor equipped with a water tank, hose, nozzle, clothing vests for fire fighter team, and a team of fire fighters. Based on field visits, the audit team asked the fire fighters to practice how to extinguish fires based on procedures that have been made, and the audit team considered that the fire fighters has been trained and understand how to handle fire properly.

√

S1

S2

S3

S4

PRINCIPLE #8 COMMITMENTS 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.

Major

8.1.1 A monitoring action plan based on the social environmental impact assessment, and regular evaluations of plantation and mill operations. As a minimum, these must include, but not necessarily be limited to: - Reduction in use of certain chemicals (criterion 4.6). - Environmental Impacts (criterion 5.1). - Waste Reduction (criterion 5.3). - Pollution and Emission (criterion 5.6). - Social Impacts (criterion 6.1).

PA BSC has not been able to show documented evidence of efforts to minimize environmental and social impacts caused by its operations. Non-conformance in

this indicator is NC-2010.02; NC-2010.12 and NC-2010.15.

X

MA The company has developed an action plan towards social impacts of community, which aims to minimize possible impacts, which might rise on employees, contractors, suppliers, communities and neighbour’s estate. The action plans among others are related to access road and conditions, housing, health and safety, FOA, environmental pollution, procedure of complaints, Gender Committee, education, religious and wages/earnings. However the monitoring of achievement of those targets has not been conducted. The non-conformance status of Pre Assessment NC-2010.02, NC-2010.12 and

NC-2010.15 is declared as closed. And at the time of main assessment is

replaced by the non-conformance CFA-2010.22

X

S1

S2

S3

S4


Minor

8.1.1 Records of follow-up actions taken against RSPO audit findings, if any.

PA RSPO audit activities are only implemented at Pre Assessment. N/A

MA Action plans among others are related with access road and conditions (Target accomplished on 30/10/2010), housing (target accomplished on January 2011), Health and Safety (target accomplished on November 2010), FOA (Target accomplished on October 2010), Environmental Pollution (Target accomplished on October 2010), procedure of complaints (Target accomplished on October 2010), Gender Committee (Target accomplished on December 2010), education (Target accomplished at new school year), Religious (Target for every religious celebration) and wages/earnings (Target every month). The company has not been able to show the results of monitoring towards the achievement of the action plan follow-up. Non conformance in this indicator is CFA-2010.22 with

Comment For Action category.

X

S1

S2

S3

S4


ANNEX 2. Stakeholders contacted List

No Institution/Department No Institution/Department

1 Executive Director of Indonesian Palm Oil Association

25 Man Power and Transmigration, Musi Rawas District.

2 Sawit Watch Indonesia 26 Environmental Agency, Musi Rawas District

3 Green Peace Indonesia 27 Musi Rawas Police

4 WWF Indonesia 28 Secretary of Musi Rawas District

5 Executive Director of WALHI 29 Transportation Agency, Musi Rawas

6 Governoor of South Sumatera 30 Health and Welfare Agency, Musi Rawas District

7 Forest Agency, South Sumatera Province 31 Capital Investment and integrated service agency, Musi Rawas District.

8 Plantation Agency, South Sumatera Province

32 Hospital of Hapsari Medika

9 Man Power and Transmigration Agency, South Sumatera Province

33 JAMSOSTEK Bengkulu

10 Health Department, South Sumatera Province

34 Mandiri Bank Lubuk linggau

11 Head of Cooperative, Small and Medium Entrepreuners, Capital Investment, South Sumatera Province

35 Sriwijaya University

13 National Land Agency, South Sumatera Province

36 KODIM 0406 Musi Rawas

14 Environment Agency, South Sumatra Province

37 Central Statistical Agency, Musi Rawas

15 Head of Musi Rawas District 38 Head of Muara Lakitan Sub district

16 Head of National Land Agency, Musi Rawas District

39 Head of Semeteh Village

17 Head of Finance and Asset Management, Musi Rawas District

40 Head of Sungai Pinang Village

18 Head of Forest agency, Musi Rawas District

41 Empty Bunch Transporter Contractor

19 Head of Rengas Village 42 Supllier

20 Head of Anyar Village 43 Head of FPR

21 Head of Semangus Lama Village 44 Sumatera Eksekutif (NGO)

22 Head of Semangus Baru Village

23 FFB Transporter Contractor

24 Heavy equipment Contractor


Annex 3. Glossary

ANDAL : Environmental Impact Analysis

BPE : Bukit Pinang estate

BSC : Bina Sains Cemerlang

B3 : Hazardous Material

BOD : Biological oxygen demand

CD : Community development

CPO : Crude palm oil

CFA : Comment for action

FFB : Fresh Fruit Bunches

HCV : High conservation value

HGU : Land Use Rights

IUP : Plantation Operation License

K3 : Occupational Health and Safety/OHS

RKL : Environmental Management Plan

RPL : Environment Monitoring Plan

SPE : Sungai Pinang estate

SPF : Sungai Pinang factory

PSD : Plantation Support Department

PKB : Work Agreement

PKS : Palm Oil Mil

POME : Palm Oil Mill Effluent

P3K : First Aid