roundtable on sustainable palm oil - tÜv rheinland · the operations of pt dharma satya nusantara...

Roundtable on Sustainable Palm Oil

Supply Chain Certification Audit Report Report no.: SCCS - 15017

Assessment against RSPO Supply Chain Certification Systems 2014

PT Dharma Satya Nusantara Tbk

Labanan-Storage Facility Sapta Mulia Building, Jl. Rawa Gelam V Kav.OR/3B, Jakarta Industrial Estate Pulogadung (Kawasan Industri

Pulogadung), DKI Jakarta Province.

Date of assessment: May 28 to 29; 2015 Report prepared by: Dian S. Soeminta

(RSPO Lead Auditor)

Certification decision by: (Abdul Qohar )

Head of Certification Body of PT TUV Rheinland Indo nesia)

Certification Body: PT TUV Rheinland Indonesia

Menara Karya, 10th Floor Jl. H.R. Rasuna Said Block X-5 Kav.1-2

Jakarta 12950,Indonesia Tel: +62 21 57944579 Fax: +62 21 57944575

www.tuv.com/id

TABLE OF CONTENTS

1.0 SCOPE OF SUPPLY CHAIN CERTIFICATION ASSESSMENT ........................... 3

1.1 Executive Summary and Scope of Assessment .......................................................................... 3 1.2 Certification Details ...................................................................................................................... 3 1.3 Organisational Information / Contact Person ............................................................................... 3 1.4 Actual production volumes and projected outputs. ...................................................................... 4 1.5 Summary of Previous Assessment .............................................................................................. 4

2.0 ASSESSMENT PROCESS .................................................................................... 5

2.1 Certification Body ......................................................................................................................... 5 2.2 Qualifications of Lead Assessor and Assessment Team ............................................................ 5 2.3 Assessment Methodology & Agenda ........................................................................................... 5

3.0 ASSESSMENT FINDINGS ..................................................................................... 6

3.1 Description of Supply Chain Management System ................................................................ 6 3.2 Identified Non-conformances against RSPO SCCS Requirements, Corrective Actions Taken and Auditors Conclusions................................................................................................................. 12 3.3 Conclusion and Recommendation for RSPO Supply Chain Certification ................................. 14

4.0 CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF INT ERNAL

RESPONSIBILITY .................................... ........................................................... 15

4.1 Date of Next Surveillance Visit ................................................................................................... 15 4.2 Acknowledgements of Internal Responsibility and Formal Sign-Off by Client .......................... 15

APPENDICES ............................................................................................................ 16

Appendix 1: Details of Supply Chain Certification Certificate .......................................................... 16 Appendix 2: List of Abbreviations ..................................................................................................... 18 Appendix 3: Observations and Opportunities for Improvement ....................................................... 18 Appendix 4: Supply Chain Certification Audit Closing Meeting Summary ...................................... 19 Appendix 5: List of Certified Suplier and Buyer ............................................................................ 20

RSPO SCCS Certification Audit Report

- PT Dharma Satya Nusantara Tbk – Labanan Storage F acility- East Kalimanan Indonesia-

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QMF: RSPO-007c-13 rev.2

1.0 SCOPE OF SUPPLY CHAIN CERTIFICATION ASSESSMENT

1.1 Executive Summary and Scope of Assessment

The operations of PT Dharma Satya Nusantara Tbk were assessed against Module B and C of the RSPO Supply Chain Certification Systems (SCCS) document (November 2014). The scope of the Supply Chain Certification System assessment covers the implementation of the Segregation and Mass Balance supply chain model of PT Dharma Satya Nusantara Tbk. This is not a multi-site certification. The certification audit was carried out on May 28 to 29, 2015 and SCCS system es-tablished by the facility has been complied, there is no non-conformitiy found during 1st certification audit.

1.2 Certification Details The details of RSPO certification of PT Dharma Satya Nusantara are as per the table below Table 1: RSPO Supply Chain Certification details of PT Dharma Satya Nusantara Tbk

Refer to Appendix 1 for further details of the RSPO Supply Chain certificate.

1.3 Organisational Information / Contact Person

Contacts details of the company are as follows:

RSPO Membership no.: 1-0135-12-000-00

RSPO Certificate no.: 824 503 15017

Date of RSPO certificate & validity: June 10, 2015 to June 09, 2020

Date of RSPO certification audit: May 28 to 29, 201 5

Company Name: PT Dharma Satya Nusantara Tbk - Laban an Storage Facility

Address: Head Office : Sapta Mulia Building, Jl. Rawa Gelam V Kav.OR/3B, Jakarta Industrial Estate Pulogadung (Kawasan Industri Pulogadung), DKI Jakarta Province.

Facility : Jl. Petani 2, Labanan Village, Teluk Bayur Sub District, Berau Dis-trict, East Kalimantan Province

Contact Person: Agustinus Triwibowo

Position: Management Representative

Telephone: Head Office : Tel : +62 21 4618135, Fax : +62 21 4606942

Facility : 0813 4631 8158

Email: [email protected]; [email protected]



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1.4 Actual production volumes and projected outputs .

Table 3: Certified tonnages claimed, certified tonn ages purchased or sold of PT Dharma Satya Nusantara Bulking Station.

*Data from Note: * this is 1st certification audit

Table 4: Records of Certified Material Recived/ Pu rchased Period may 2015 to May 2016

Supplier RSPO Certificate Number

Product UTZ Number

Volume*

PT Dharma Satya Nusantara Tbk (PKS2)

MUTU-RSPO/56 CPO RSPO-PO1000000939 0

PT Dharma Satya Nusantara Tbk (PKS 3)

MUTU-RSPO/55 CPO RSPO- PO1000000950 0

Table 5: Records of Palm Oil Product Sold Period M arch 2014 to March 2015

Buyer RSPO Certificate Number

Product UTZ Number Volume

PT Dermaga Kencana In-donesia

824 503 14008 CPO RSPO_PO1000001844 0

PT LDC Indonesia 824 503 15010 CPO RSPO_PO1000001712 0 PT Smart Tbk SGS-RSPO/SC-

MY14/01549 CPO RSPO_PO1000000698 0

PT Sumber Indahperkasa SGS-RSPO/SC-MY15/01678

CPO RSPO_PO1000002035 0

1.5 Summary of Previous Assessment

This is first certification audit. There is no audit before for PT Dharma Satya Nusantara Tbk . During the certification audit the system to implement of RSPO supply chain certification was well. The company

Amount (MT)

Certified tonnages claimed* -

Certified tonnages sold* -

Certified tonnage sold under (Green Palm and UTZ System) -

Certified tonnages purchased* -

Total Storage capacity according to licensed from government

28,000 MT oil storage

Actual Certified Product Storage for year 2014 1 22,543.753

Projected total output for yeah 2015 400,000



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could demonstrate the system has fulfilled the RSPO requirements and was recommended as SCCS certified company.

2.0 ASSESSMENT PROCESS

2.1 Certification Body PT TUV Rheinland Indonesia is member of Group TÜV Rheinland Group, a global leader in independent testing and assessment services. The TÜV Rheinland Group was established in 1872 with offices located in over 490 locations in 62 countries on all five continents. PT TUV Rheinland Indonesia offers certifica-tion for a wide range of management systems according to established international standards including ISO 9001, ISO 14001, OHSAS 18001, SA 8000, as well as CDM Validations and Verifications, RSPO (RSPO-ACC-013 dated on June 06, 2014) and ISPO (LS-P&K-005-ISPO dated on May 10, 2012). PT TUV Rheinland Indonesia’s office is located in Jakarta, Indonesia.

2.2 Qualifications of Lead Assessor and Assessment Team

Name Position Qualifications / Experience

Dian Su-santy Soeminta

Lead Audi-tor

Education: Bachelors Degree in Forestry - Bogor Agriculture Institute. In-donesia, (1990 to 1995). Trainings attended : ISO 9001:2000 lead assessor course 1996 - Neville Clark; ISO 14001 lead assessor course - PE International; OSHAS: 2007 training, Sustainable Forest Management (SFM) - Forest Stewardship Council (FSC) system training; Chain of Custody training for FSC System. RSPO lead Auditor training year 2010 by Pro Forest and Wild Asia. SCCS training by David Ogg Consulting. ISPO Lead Auditor training Working experience: Professional forester since 1995 to 2000. Lead Au-ditor for Forest Stewardship Council (FSC), Sustainable Forest Certifica-tion (SFC) and Chain of Custody (COC) Certification. Lead auditor for En-vironmental Management System (EMS) and Quality Management System (QMS) audits. Conducted sustainable forest management certification au-dits on FSC and Indonesian Ecolabel Institute (Lembaga Ecolabel Indone-sia - LEI) standards for 20 companies, 50 COC FSC/LEI audits, and EMS and QMS audits at more than hundred companies for TUV Rheinland In-donesia. Instrumental in the preparation of TUV Rheinland Indonesia for Sustainable Forest Management Certification System and TUV Rheinland Malaysia for RSPO Certification. Member of Task Force for Indonesian National Interpretation (Guidance on scheme smallholder RSPO certifica-tion). Developed TUV Rheinland RSPO Gap Assessment Checklist and report template.

2.3 Assessment Methodology & Agenda The supply chain certification audit was conducted between May 28 & 29, 2015 as per the assessment program below. The assessment was carried out in accordance PT TUV Rheinland Indonesia’s RSPO audit procedure as well as the RSPO Supply Chain Certification document. An on-site assessment was conducted and the assessment team carried out field and document as-sessments of compliance to RSPO Supply Chain Certification System requirements. The company proposed the correction and corrective action for all identified non conformities raised to the certification body 30 days after the closing meeting. Certification Audit Agenda



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3.0 ASSESSMENT FINDINGS PT Dharma Satya Nusantara Tbk is a group of oil palm plantation and palm oil mills companies. PT DSN sale CPO, PK and PKO product to their buyer. PT Dharma satya Nusantra Tbk rent storage tank from PT Swakarsa Sinarsentosa to store CPO before shipped to appropriate buyer. PT Swakarsa Sinarsen-tosa - Labanan is a bulking station owned by PT Swakarsa Sinarsentosa (the land use right no. 09 dated on July 11, 2008 with total area of 24,937 m2 at Labanan Jaya village with validity until July 10, 2028 and the land use right No.01 dated on December 23, 2003 with total area of 13,140 m2 at Labanan Jaya vil-lage with validity until December 15, 2023). The facility was commissioned in year 2007 with CPO storage units as much as 8 unit (capacity for each tank/storage unit: 2,000 MT) and palm kernel oil (PKO) storage units as much as 2 unit (capacity for each tank/storage: 2,000 MT) PT Dharma Satya Nusantara Labanan Storage Facility apply to TUV Rheinland Indonesia to certify SCCS with selected Module B (Segregation) and Mass Balance refer to RS PO SCCS year 2014.

In year 2014, total CPO received by Labanan Bulking Unit on behalf of PT Dharma Satya Nusantara Tbk were 173,955.730 MT consist of 122,543.753 MT certified with MB claim and 51,411.977 MT with non certi-fied claim from all palm oil mills under PT Dharma Satya Nusantara Tbk.. All palm oil mills under DSN group has been certified with MB claim at the moment, however two palm oil mills under PT DSN i.e. Mill 2 and Mill 3 are ongoing to changes their certiciate scope from MB model to IP model.

According to “Laporan Penerimaan, Penjualan dan Stock CPO total product sold from Labanan Buking on behalf PT Dharma satya Nusantara Tbk were 262,949.300 MT both certified and non certified product.

The following is a description of the company’s supply chain management system according to the RSPO SCCS requirements.

3.1 Description of Supply Chain Management System The following is a description of the findings pertaining to the company’s supply chain management sys-tem according to the RSPO SCCS requirements, including status of compliance of the company and their outsourced third parties to RSPO SCCS requirements:

Section 5: General Chain of Custody System Requirements for the Supply Chain

5.1. Applicability of the General Chain of Custody System Requirements for the supply chain

Findings: Since PT Dharma Satya Nusantara Tbk – Labanan Storage Facility decided to implement RSPO SCCS, the company has established supply chain management system refer to RPSO SCCS satandard year 2914. Considering the nature of incoming material, company decided to implement Segregation (SG with Modul B) with physical separation.

To support implementation of RSPO Supply Chain, PT Dharma Satya Nusantara Tbk – Labanan Stor-age Facility has a complete standard operation manual and standard operation procedure about supply

Date Location/ Main sites Main activities May 28, 2015 Bulking Office Opening Meeting

Company Profile Presentation regarding company current situa-tion Document check for SCCS System Incoming material CPO Storage

May 29, 2015 Bulking Facilities Sales Department

Plant Tour Product Processing Finished Good Packing

S Sales and Export Document C Closing Meeting



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chain for all strategic operation units.

Labanan Bulking Unit is a bulking station owned by PT Swakarsa Sinarsentosa a subsidiary of Dharma Satya Nusantara group. At time of audit, the company has prepared all docuemted system following reference standard it was verify the system quite well and the implementation will be verified during next surveillance audit. . PT DSN is RSPO member with membership number 1-0135-12-000-00 Compliance status: Full Compliance

5.2. Supply Chain Model

Findings: PT DSN Labanan Storage Facilty select RSPO SCCS with SG model. Company implement physical segregation for incoming purchased IP material. Compliance status: Full Requirement.

5.3.Documented Procedure

There is a set of existing standard operation procedure since incoming material (CSPO) until product dispatch. The company has a procedure for implementation of SCCS requirements. There are a set of existing procedures consisting of : • Procedure for Labanan Bulking (SOP-AGR-004-R00, dated on February 15, 2013); • Working Instruction for reception and weighbridge of raw material CPO/CSPO (IK-AGR-LBN-01-

R00, dated on May 01, 2014); • Working Instruction for Loading /CSPO (IK-AGR-LBN-03-R00 dated May 1, 2014); • Working Instruction for traceability of CPO and PK production (IK-AGR-MS-08-R01, dated on June

01, 2015);

All activities from CPO recived, storage until dispatch were recorded on “working sheet oil stocking for-mat” everyday. Company also makes monthly report for CPO received and sold. All records are keep maintained properly, some records was sight during main aduit such as weighbridge (WB) and expedi-tion slip records, Unloading material (CPO) book, Bill of Landing. There is product transfer document and summary of weighbridge notes including the manifest and invoice documents to inform about all transaction from Labanan Bulking.

The name of the person having overall responsibility for and authority over the implementation of these requirements and compliance with all applicable requirements has been assigned at the audit time. There is Memorandum No. 0002/DIR/JKT/VI/15 dated May 29 , 2015 about Management Representa-tive (MR) assignment letter for RSPO (P&C and SCCS), ISPO, ISCC, and ISO i.e. Mr. Agustinus Triwi-bowo assited by Bulking Head (based on internal correspondence No. 0065/MS/VIII/2013 dated on Ju-ly 1, 2013) for implementation of SCCS in Labanan Storage Unit. Compliance status: Full Compliance

5.4. Purchasing and goods in

Findings:

Currently Incoming certified material for PT Dharma Satya Nusantara Tbk – Labanan Storage Facility come from certified palm oil millls subsidiary of DSN group. There are 2 potential certified suppliers i.e. PT Dharma Satya Nusantara Tbk Mill 2 and Mill 3 which are now ongoing to be certified with IP model. Labanan Storage Facility has mechanism to receive certified material (IK-AGR-LBN-01-R00 and IK-AGR-MS-08-R01). The documents to be verified from certified sources are weighbridge and expedition



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slip/note (FM-DIS-01-Rxx). Security tim will check conformity all information in the delivery notes includ-ing including wet stamp (selection model IP) from the origin palm oil mill, check the mill name in the memorandum to ensure certificate status The company assigned a person that has responsibility to check and ensure certified material both quality and quantity as per weighbridge and expedition. Com-mercial Departement will checking the validity of supplier’s certificate via the list of RSPO SCC facilities on the RSPO website (www.rspo.org) or the RSPO IT system within a reasonable timeframe.

When receiving RSPO certified material, weighbridge operators will verify the claimed category of the material under IP model, name of supplier (supplier has RSPO certificate or not), ensure quality and quantity of products, ensure number of seal (red and yellow). Weight bridge operator give instruction to the driver regarding defined storage tank (i.e. storage tank no 3,4 or 5) for CSPO from certified mill (Mill 2 & 3 PT DSN Tbk, following to the company’s working instruction of reception and weighbridge of CPO (IK-AGR-COM-01-R00) and working instruction of traceability for CPO and PK production (IK-AGR-MS-08-R01) including mechanism for handling of non-conforming material/documents.

In year 2014, total CPO received by PT Dharma Satya Nusantara Tbk – Labanan Storage Facility is 122,543.753 MT certified material from Mill 2 & 3 PT Dharma Satya Nusantara Tbk which is still with MB claim which is 60,828.351 Mt from Mill 2 and 61,715.402 Mt from Mill 3.

All weighbridge (WB) and delivery note were keep maintained by administration section. Commercial depatement will update material stock information to monitor the product. The company has been established mechanism to inform CB immediately if there is a projected over-production. Compliance status: Full Complaince

5.5. Outsourcing activities

Findings: There is no outsourced activity for Labanan Storage Facility. This requirement is not applicable for this Labanan Storage Facility . Compliance status: Not Applicable

5.6. Sales and goods out

Findings: The sales and goods out mechanism of the company are described in their procedure of sales of palm oil. Comercial department issue “ pembagian BL” document to Labanan Bulking. together with “Permintaan verifikasi muat bongkar (PVMB)” document. Information stated on both documents are product quantity, buyer name and address, loading place and time, estimation time arrival, Bill of lad-ing number and quantity, discharge port and trading contract document. All products will be sold through vessel. Certified product from dedicated storage tank will be dispatched through dispatch pipe directly to the the vessel, certified product from dedicated storage will be pumped using pipe line to compant’s own jetty. Information for outgoing certified product will be recorded in several type of records depend on the transfer method used such as: Vessel: CPO Transfer notes (“Berita Acara Serah terima): Shipping Instruction (SI); Bill of lading (B/L); Certificate of Analysis; and Commercial invoice. Product weight report (Laporan Hasil Timbang Per Transport) /analysis. Bulking head receive information about volume and product claim (including selction model) from commercial department to be sold according to the contract with the buyer. Bulking head will review-ing conformity of loading instruction with product stock report (material balance) before issue loading



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instruction to loading staff and verify with transfer notes to the balance tanks(called Two Bin). Pipe lines cleaning will be conducted before loading CPO to the vessel using blowing dan pigging as stat-ed on working instruction no IK –AGR-019-00 (IK Loading process). Bulking administration staff will input information about outgoing CPO according to information on “Laporan Hasil Timbang (Product Balance report)” to Working Sheet Oil Stocking. All certified product transaction documents shall in-clude information about selection supply chain model as well as on Balance report per product tran-port, and minutes of product transfer (Berita Acara Serah Terima/ BAST) CSPO shall state certified SG” stamp. Bulking staff records total CSPO loaded to the vessel from specified storage tank (3,4 or 5 with claimed SG) for it traceability. There are two balance tanks, even both tanks will be cleaned before CPO loading to the vessel, no clear information which balance tank will be used for SG prod-uct since the bulking also has non SG products. This is company’s opportunity for improvement to make proceses separation at balance tank (BIN) clearer. All product dispatched to buyer for every certified product delivered has information about: Reference Number, Date of issued, Delivery Order number, Contract Number, buyer name including the address of buyer, the quantity of the products delivered and Reference to related transport documentation. In-formation about the name and address of the seller has been attached on every delivery documents e.g. letter head and information inside documents, including information about loading/delivery date. The company has implemented this system for their regular products while the company will include certified product claim and SCC certificate number on each delivery document i.e. will be changes from IP to SG. The company will use certification number in all docs once certified by TUV Rhein-land. The implmenatation will be verify during surveillance audit. Compliance status: Compliance with Observation

5.7. Registration & Transaction

Findings: PT DSN Labanan Storage Facility has register on RSPO IT System (Etrace) with registration number ID RSPO-P010000002605. It is explained on IK_AGR-MS-08-R)1 section VI C, commercial departe-ment responsible for E trace transaction for every certified palm oil transaction both receiving confir-mation and Sale announcement.. Trasaction begin after RSPO SCCS certificated awareded. Im-plementation of procedure will be check on the next surveillance audit. During certification audit, it was proved that commercial head can explain procedure of E Trace transaction clearly, but not for other staff this is raised as observation to be check after certificate awarded. Compliance status: Compliance with observation.

5.8. Training

Findings: PT DSN Labanan Storage Facility has training plan for year 2015 as stated on FM-HRD-19-R01. There are 14 training plan for year 2015 including Refresh training for SCCS and training for loading & unload-ing CPO & PK.

SCCS training was conducted on April 09, 2015 atteded by 8 training participant. And RSPO SCCS SG training on May 15, 2015 attended by 26 staffs Labanan Bulking. During the audit, it was sight training evidence such as training plan, training material and attendance list.

Commercial staffs conducted Etrace training through RSPO website. Compliance status: Full Compliance

5.9. Records Keeping



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Findings: As stated on Documents and records control procedure (SOP-AGR-036-R03) the company stated the retention time of records related SCCS RSPO implementation shall be at least five (5) years. The storage and maintenance of documents is the responsibility of the respective departments. This procedure and documentation will be applied after the company get SCCS certificate and pro-duces certified product. The company will clearly indicate the supply chain model used with trade names in relevant docu-ments, e.g. purchase and sales contracts with *product name*/ “IP or SG” Segregation. Labanan Bulking record all volume of RSPO certified oil palm products purchased and claimed over on DSN Mass Balance SG reporting, the information stateds on the report is daily updated consist of infor-mation about incoming CPO with claime SG or not SG; Outgoing CPO with claim SG, MB and non SG, stock position, Contract number, Volume, Buyer name, Vessel name and claim product sold, actual im-plementation will be check during next surveillance audit. Compliance status: Full Compliance

5.10. Conversion Factor

Findings: Labanan Bulking is only product storage facility, There is no product processing in storage tank. Amount of incoming material will be sold 100% without losess. This reqruirement is not applicable for Labanan Bulking. to set their own conversion rates because. 100% incoming product can be sold match Compliance status: Full Compliance

5.11. Claims

Findings: The company has not yet prepared a procedure for certified product communication and claim accord-ing to RSPO requirements as they have not made any claims yet. According to product traceability in-struction, the facility will only make claims regarding the use of or support of RSPO certified material that are in compliance with the RSPO Rules for Communication and Claims if they sale end product. PT DSN has sale CPO which is categorized as intermediate product.. Compliance status: Full compliance

5.12. Complaints

Findings: The organization established standard Operation procedure for Communication & Complaint Handling i.e. SOP_AGR-004-R)). The SOP determine all inclong complaints from stakeholders received by DSN staff including complaint about disatisfaction to PT DSN staff performance. Incoming complaints will be recorded on “Complaint Form (Form Laporan Penangan Keluhan) FM_STD-29-R00. Verbal and written complaint will have written responses from Legal Departement together with CSR and Operation Departement Head and will be documented as stated on Document Control procedure. All process will be monitored on “ List of Monitoring of external Complaint” (Daftar Monitoring Per-mintaan Informasi atau Daftar Monitoring Keluhan Eksternal) i.e. FM-STD-30-R01 until the case fin-ished. Compliance status: Full Compliance

5.13. Management review

Findings:



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There is SOP for Managemnet Review i.e. SOP-ADR-041-R00 issued on February 15, 2013. Man-agement review was conducted on April 29, 2015. The Management review agenda that were discus-es during the meeting were:

- Effectifity implementation of RSPO, ISPO and quality Management System implementation. - Internal Audit result, there are 8 non confmormities including 1 nonconformity related to

RSPO SCCS. - Customer complaint - Process performance and product conformity. There are 5 new standard operation proce-

dures and 2 new working instructions. - Improvement and recommendation for sustainibility. Regarding certification for new palm oil

mill i.e. PKS 4. - Correction and preventive action

The output from the management review has been include any decisions and actions related to: Improvement of the effectiveness of the management system and its processes such as all company’s estate will be certified to RSPO certificate. There will be scope extention from SCCS Model MB to SCCS Model IP for palm oil Mill and SG for bulking station Information about reources needed to implement review output as required by RSPO SCCS year 2014 and as stated on attchement of SOP –AGR-041-ROO and minutes management review meeting (FM-STD-14-R01) has been stated on the minutes meeting. It was sight the output from management review still not inline with the input although the action plan for the management review output has been decided. This is opportunity for company’s improvement to make better management meeting notes. Compliance status: Compliance with observation.

Section 2: Modular Requirements: Module B Segregation

B.2 Supply chain requirements

Findings: PT DNS Tbk Labanan Storage Facility decides to select Segregation model fro RSPO SCCS certified claimed. All RSPO certified plam oil will be distinguished with non certified palm oil, from incoming product until outgoing product. The company will not mix their RSPO certified palm oil with non certified material. The mixing process allowed only for certified product with IP claime from PT DSN mill 2 and PT DSN mill 3. Compliance status: Full Compliance

B.2 Processing

Findings: To kept segregated from non certified material/product along the bulking facilities, company estab-lish Tracebility procedure i.e. working Instruction for traceability of CPO and PK production (IK-AGR-MS-08-R01, dated on June 01, 2015. The objective is for 100% segregated material to be reached. Since incoming CSPO, storage process and outgoing CSPO. At the entry gate, security tim will check conformity all information in the delivery notes including wet stamp (selection model IP) from the origin palm oil mill, check the mill name in the memo to ensure certificate status. After security checked the truck will go to the weighbridge to check the product quantity, weighbridge operators will verify the claimed category of the material under IP model, name of supplier (supplier has RSPO cer-tificate or not), ensure quality and quantity of products, ensure number of seal (red and yellow).



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Weight bridge operator give instruction to the driver regarding defined storage tank (i.e. storage tank no 3,4 or 5) for CSPO from certified mill (Mill 2 & 3 PT DSN, following to the company’s working in-struction of reception and weighbridge of CPO (IK-AGR-COM-01-R00) and working instruction of traceability for CPO and PK production (IK-AGR-MS-08-R01) including mechanism for handling of non-conforming material/documents Certified product from dedicated storage tank will be dispatched through dispatch pipe directly to the the vessel, certified product from dedicated storage will be pumped using pipe line to compant’s own jetty. The company assigned a person that has responsibility to check and ensure certified material both quality and quantity as per weighbridge and expedition. Pipe lines cleaning will be conducted before loading CPO to the vessel using blowing dan pigging as stated on working instruction no IK –AGR-019-00 (IK Loading process). Before product transferred to the vessel, The CSPO volumes will be balanced though balance tanks. All process will be monitored and records into specified documents. However the facility still not clearly determined mechanism to distinguishing between RSPO SG rec-ords and Non SG. Compliance status: Compliance with observation

Section 2: Modular Requirements: Module C Mass Balance

C.1 Definition

Findings: Beside will implement Segergation, Labanan Storage Facility also will implements the mass balance system for incoming MB material. For Mass Balance (MB) supply chain model administration Labanan Storage Facility monitors the storage of RSPO certified oil palm products throughout the entire supply chain, as a driver for mainstream trade in sustainable palm oil. Compliance status: Full Compliance

C.2. Record keeping

Findings: As stated in their RSPO Manual, the company stated the retention time of records related SCCS RSPO implementation shall be at least five (5) years. The storage and maintenance of documents is the responsibility of the respective departments. As stated on documents and records control procedure (SOP-AGR-036-R03) the company stated the retention time of records related SCCS RSPO implementation shall be at least five (5) years. The storage and maintenance of documents is the responsibility of the respective departments. This procedure and documentation will be applied after the company get SCCS certificate and pro-duces certified product The company has been indicate the supply chain model used clearly with trade names in relevant documents, e.g. purchase and sales contracts with *product name*/ “SG” Segregation or “MB” Mass Balance. Compliance status: Full Compliance

C.3. Processing



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Findings: Labanan Storage Facility has a monitoring system to ensure that the quantity of physical RSPO mass balance material inputs and outputs (volume or weight) are processed following the standard opera-tion procedure and RSPO SCCS requirement. All input material that processed will be recorded on Material Balance Report every 3 months to en-sure that the output of RSPO mass balance material supplied to customers from the physical site does not exceed the input of RSPO certified material received at the physical site with 3 months in-ventory period. Compliance status: Full Compliance C.4. Continuous accounting system Findings: Labanan Storage Facility will record quantities of MB material inputs and become MB outputs, total storage material are monitored on a real-time basis. The company implement a continuous accounting system is in operation, it was sighted the format to be used after the certificate awareded. The data will be recorded in the material accounting system. All volumes of palm oil that are delivered are deducted from the material accounting system according to actual daily conversion ratios. All volumes of palm oil fractions and derivatives that are delivered are deducted from the material ac-counting system according to conversion ratios stated by RSPO, and the record are keep maintained by the document controller. Compliance status: Full Compliance

C.5. Fixed Inventory Periods

Findings: Labanan Storage Facility will implements 3 monthly fixed inventory period is in operation, The com-pany has records that the quantity of RSPO mass balance material inputs and outputs (volume or weight) are balanced within a fixed inventory period which does not exceed 3 (three) months. The implementation will be checked during next surveillance audit. Compliance status: Full Complaince

C.6. Conversion Ratios

Findings: Since there is no material processing in Labanan Storage Facility. The activities only receiving mate-rial, storage and outgoing material, this requirement is not aplicable for Labanan Storage Facility Compliance status: Not Applicable

C.7.Yield Scheme

Findings: Since there is no material processing in Labanan Storage Facility. The activities only receiving mate-rial, storage and outgoing material, this requirement is not aplicable for Labanan Storage Facility Compliance status: Full Compliance



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3.2 Identified Non-conformances against RSPO SCCS Requirements, Corrective Actions Taken and Auditors Conclusions

There is nonconformities raised during certification audit.

3.3 Conclusion and Recommendation for RSPO Supply C hain Certification

The auditor has confirmed through the audit process that PT Dharma Satya Nusantara Tbk – Labanan Storage Facility has established and maintains an effective system to ensure compliance with the RSPO Supply Chain Certification System requirements (dated November 2014). For consistency, the implemen-tation of RSPO SCCS system will be verified during next surveillance audit. .

TUV Rheinland Indoneisa confirms that PTDharma Satya Nusantara Tbk – Labanan Storage Facility com-plies with the RSPO Supply Chain Certification System requirements.



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4.0 CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF INT ERNAL RESPONSIBILITY

4.1 Date of Next Surveillance Visit

The next surveillance visit is planned for May, 2016.

4.2 Acknowledgements of Internal Responsibility and Formal Sign-Off by Client

It is acknowledged that the assessment visit was carried out as described in this report and we accept the assessment findings and report content. Signed on behalf of DSN Labanan Storage Facility.

Signed on behalf of PT TUV Rheinland Indonesia

AgustinusTriwibowo Dian S. Soeminta Management Representative Lead Auditor



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APPENDICES

Appendix 1: Details of Supply Chain Certification C ertificate



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Appendix 2: List of Abbreviations

B/L Bill of Lading CPO Crude Palm Oil CB Certification Body CSPO Certified Sustainable Palm Oil DO ISPO

Delivery Order Indonesia Sustainable Palm Oil

MT Metric Tonnes MB ISCC

Mass Balance International Sustainable and Carbon Certification

POM Palm Oil Mill PKO Palm Kernel Oil RSPO Roundtable on Sustainable Palm Oil SO Sales Order SCCS Supply Chain Certification System SOP Standard Operating Procedure WB Weighbridge

Appendix 3: Observations and Opportunities for Impr ovement

1. 5.8 PT DSN should provide Etrace training for all relevant staff delaing with RSPO product transaction.

2. B.2. Labanan Bulking should define clearly which bin tanks to be used for RSPO SG product.

3. 5.9 Labanan Bulking should practice all template formats to record all RSPO SG product for better RSPO SCCS SG implementation.

4. 5.13 Management review output should inline with the input.

5. Mechanism to distinguishing between RSPO SG records and Non SG should defined clearly.



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Appendix 4: Supply Chain Certification Audit Closin g Meeting Summary



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Appendix 5: List of Certified Suplier and Buyer List of potential certified Supplier

No. Name of Sup-

plier Address Telephone

no. Contact Person

Certificate No.

Supply chain model

Expiry Date

1 PT Dharma Satya Nusantara Tbk (PKS2)

Desa Puhus, Muara Wahau , Kalimantan Timur

021 4618135 Sudarmo ongoing IP

2

PTDharma-Satya Nusanta-ra Tbk (PKS3)

Desa Long Keji-ak,Muara Wahau, Kalimantan Timur. 021 4618135 Sudarno

ongoing

IP

List of certified buyer

No. Name of Buyer Address

Telephone no.

Contact Person

Certificate No.

Supply chain model

Expiry Date

1

PT Dermaga Kencana Indonesia

Jl. Sungai Tempen-dung RT 009, Ke-lurahan Keriangau Kecamatan Balikpa-pan, provinsi Kaliman-tan Timur

+62(21) 57273535-36 + 62 (542872

Mr. Roy Martin Silalahi

824 503 14008

SG & MB

Valid from 2015-01-25 to 2020-01-24

2. PT Jl. LDC Indonesia

Jl. Soekarno Hatta, Km 10 RT 23 LK 2, Kelurahan Way Lunik, Kecamatan Panjang, Bandar Lampung 35133, Provinsi Lam-pung, Indonesia

+62()) 8117238822

Mr. Ariel Rizki

82450315010

SG & MB

Valid from 2014-12-10 until 2019-12-09

3 PT Smart Tbk

Desa tarjun, Kecama-tan Kelumpang Hilir, Kabupaten Kotabaru Kalimantan Selatan, 72161

021 2150333888

Mrs. Suwita Anoinette

SGS-RSPO/SC-MY14/01549

SG & MB

Valid from 18 sep-tember 2014 to 17 Septem-ber 2019

4. PT Sumber Indahper-kasa

Dusun Sukamaju, Desa Rangai tritung-gal Kecamatan Kati-bung, Kabupaten Lampung

021 50333888

Mrs. Suwita Antoi-nette

SGS-RSPO/SC-MY15/01678

SG & MB

Valid from January 23, 2015 until Jan-uary 22, 2020