[]st-1 [ ] st-2[] [ ] - rspo · st-1 [ ] st-2[] s-1 √] s-2 [ ] s-3 ... certificate code :...

PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT

Roundtable on Sustainable Palm Oil Certification

[]ST-1 [ ] ST-2[] S-1[√] S-2 [ ] S-3 [ ] S-4 [ ] Re-Assessment

Plantation Management/Owner : SIME DARBY Plantation Sdn Bhd

Plantation Name : Bebunga Factory – PT. Langgeng

Muaramakmur

Location :

Sub District of Pamukan Utara and Pamukan Selatan District of Kotabaru, Province of South Kalimantan

Certificate Code : MUTU-RSPO/014

Date of certificate issue : 16– 03 – 2012

Date of expiry of certificate : 15 –03 – 2017

Assessment Assessment

Date

Report Finalization

Date

PT. Mutuagung Lestari Auditor

Checked by

Approved by

ST2 29/05/2011 – 04/06/2011

Taufik Margani; Faruk Ahmad Nasir; Oktovianus Rusmin; Marsudi Eko

Santoso

Reny Rustianingsih

Tony Arifiarachman

S1 17 – 19 January

2013

Taufik Margani, Oktovianus Rusmin, Ardiansyah, Moh Arif

Yusni, Yudwi Wisnu R.

Octo H.P.N Nainggolan

Tony Arifiarachman

S2 28 February – 3 March 2014

Taufik Margani, Muardi Marwas, Bukti Bagja, Sandra Purba, Brigitta

Pritta

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

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

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

MUTU Certification • Approved by RSPO Secretariat on June 2008

Submitted to RSPO on:

Approved by RSPO on:

Approved by Certification Body on:

03 April 2013 - 16 March 2013

http://www.mutucertification.com/


ASSESSMENT REPORT

SPO – 4006a.5 ii Prepared by Mutuagung Lestari for Bebunga Factory – PT. Langgeng Muaramakmur

TABLE OF CONTENT

FIGURE

Figure 1. Location Map of PT. Langgeng Muaramakmur Figure 2. Operational Map of PT. Langgeng Muaramakmur

1 2

1.0 SCOPE of theSURVEILLANCE ASSESSMENT

1.1 National Interpretation Used 3

1.2 Organization Information 3

1.3 Type of Assessment 3

1.4 Location of Plantations, Mill and Area Statement 3

1.5 Description of Supply Base 4

1.6 Dates of Plantings and Cycles 5

1.7 Tonnage Certified 6

1.8 Other Certifications 6

1.9 Time-Bound Plan for Other Management Units 6

2.0 ASSESSMENT PROCESS

2.1 Certification Body 8

2.2 Assessment Team 8

2.3 Assessment Methodology, Assessment Process and Locations of Assessment 9

2.4 Stakeholder Consultation and List of Stakeholders Contacted 11

2.5 Date of Next Surveillance Visit 11

3.0 ASSESSMENT FINDINGS

3.1 3.2

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

12 39

3.3 ConformityChecklist of Certificate and Logo Use 43

3.4 Summary of RSPO Partial Certification 44

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

45

3.6 Summary of Arising Issues from Public, Management and Auditor Responses 65

4.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Signing of Assessment Findings 73

APPENDICES

1. List of Stakeholders Contacted in the RSPO Certification Process 74

2. Assessment Program 75

3. Glossary 77

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 1 Prepared by Mutuagung Lestari for Bebunga Factory – PT. Langgeng Muaramakmur

Figure 1. Location Map ofPT. Langgeng Muaramakmur

Source: http://www.wri.org/applications/maps/forest-cover-analyzer/

PT Langgeng Muaramakmur

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 2 Prepared by Mutuagung Lestari for Bebunga Factory – PT. Langgeng Muaramakmur

Figure 2. Operational Map of PT. Langgeng Muaramakmur


ASSESSMENT REPORT

SPO – 4006a.5 Page 3 Prepared by Mutuagung Lestari for Bebunga Factory – PT. Langgeng Muaramakmur

1.0 SCOPE OF THE CERTIFICATION ASSESSMENT

1.1 National Interpretation Used National Interpretation, RSPO Principles and Criteria (P&C) for Sustainable Palm Oil Production, Republic of Indonesia - RSPO INA-NIWG, May 2008 and RSPO Supply Chain Certification Standard November 2011.

1.2 Organization Information

1.2.1 Company name MINAMAS Plantation – SIME DARBY Group

1.2.2 Contact person Mohamad Pirabaharan

1.2.3 Company address and site address Company Addres :The Plaza Office Tower Lantai 36 Jl MH Thamrin Kav. 28-30 Jakarta 10350 Site Address : Sub District of Pamukan UtaraandPamukan Selatan District ofKotabaru, Province ofSouth Kalimantan

1.2.4 Telephone +62-21-29926000

1.2.5 Fax +62-21-29922686

1.2.6 E-Letter [email protected]

1.2.7 Web page address www.simedarby.com

1.2.8 Company status Swasta

1.2.9 Management Representative who completed the application for certification

Mohamad Pirabaharan (Head of PSQM Minamas Plantation)

1.2.10 Registered as RSPO member 08 Desember 2004

1.3 Type of Assessment

1.3.1 Scope of Assessment Mill and Estate

1.3.2 Type of certificate Single

1.3.3 Company names listed in the certificate PT. Langgeng MuaraMakmur

1.3.4 Number of management unit 1 (one) palm oil mill unit (POMBebunga) with FFBfrom 3 (three) estate unit, i.e.: Bebunga Estae (BBE), Sungai Cengal Estate (SCE), and Bakau Estate (BKE)

1.4 Locations of Mill, Plantations and Area Statement

1.4.1 Location of Mill

Name of Mill Location

GPS

Latitude Longitude

BebungaFactory Binturung Village, Pamukan Utara Sub District, Kotabaru District, South

Kalimantan Province

020 22 ’25,8” S 1160 19’ 47,00” E

1.4.2 Location of Supply Base

Name of Supply Base Location

GPS

Latitude Longitude

Sungai Cengal Estate Binturung Village, Pamukan Utara Sub District, Kotabaru District, South Kalimantan Province

20 24' 12" - 20 28' 14" S 1160 19' 39" - 1160 23' 30"E

http://www.simedarby.com/


ASSESSMENT REPORT


Bebunga Estate Binturung Village, Pamukan Utara Sub District, Kotabaru District, South Kalimantan Province

2020' 00" - 2024' 14" S 1160 19' 42" - 1160 23' 47"E

Bakau Estate Balimea Village, Pamukan Utara Sub District, Kotabaru District, South Kalimantan Province

2019' 25" - 2025' 14" S 1160 14' 47" - 1160 19' 42"E

1.4.3 Tenure

Private -

State 17.523,99 Ha

Community -

1.4.7 Area Statement

Total area of PT.LMR 17.523,99 Ha

The area which is not covered in the scope of certification (Lanting Estate)14

3.249,27 Ha

Total area Total Area (BBE, BKE & SCE) 14.274,72 Ha

Area of Replanting 192,61 Ha

Mature areas 10,109.00 Ha

Immarture areas 0 Ha

Factory (Mill) 32,42 Ha

Infrastructure areas 155,83 Ha

Occupied areas (if any) 574,51 Ha

HCV 958,28 Ha

Port 12,57 Ha

Replanting areas 127.91 Ha

Road, Bridge and drainages Jalan, JembatandanParit 358,37 Ha

Rivers, valley and hilly 794,53 Ha

Enclave) 470,41 Ha

Reserves areas) 488,28 Ha

1.5 Description of Supply Base

1.5.1 Description of Mill

Name of Mill Capacity

(tonnes/ hour)

FFB Processed

(tonnes/ year)

CPO Palm Kernel PKO

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Bebunga Factory

60 159,178.

75 36.760.0

9 23.09 8,667.49 5.45 - -

*Source Production Data on February 2013 – January 2013

1.5.2 Description of Estate(s)

Name of Estate(s) Total Area

(Ha)

Planted Area (Ha)

FFB (tonnes/year)

Yield (tonnes/ha/year)

Supplied to Mill

FFB (tonnes/year)

%

Bebunga Estate 3,891 2,871 43,031 14.99 43,023 100

Bakau Estate 5,350 3,159 51,491 16.24 51,314 100


ASSESSMENT REPORT


Sungai Cengal Estate 4,974 4,079 60,003 14.71 60,020 100

Total 14,215 10,109 154,525 10.87 154,357 100


1.5.3 Smallholder(s) and other source

Name of sources

Members Location Total Area

(Ha) FFB

(tonnes/year)

Supplied to Mill

FFB (tonnes/year)

%

SYE - Desa Sekayu - 192.09 192.09 2

BTE - Desa Betung - 50.28 50.28 0.6

BNE - Desa Binturung - 1,025.19 1,025.19 11.7

KKPA 260 KK Desa Binturung 383 3,466.42 3,466.42 39.42

Total 4,734 4,734 53.72


1.5.4 Product categories FFB/CPO/PK

1.6 Dates of Plantings and Cycles

1.6.1 Age profile of planted palms*

Year of Planting

Luas (Ha)

BBE BKE SCE Total

1992 192 192

1993 58 60 118

1994 205 177 54 436

1995 350 543 168 1,061

1996 947 1,165 1,216 3,328

1997 1,005 1,205 811 3.021

1998 77 69 182 328

1999 276 276

2000 348 348

2005 375 375

2006 22 181 203

2007 426 426

2008 15 15

TOTAL 2.871 3.159 4,079 10,109

1.6.2 New Planting area after November 2007 - Ha

1.6.3 Planting Cycle 1stCycle 25 Years

1.7 Approximate Tonnage Certified

1.7.1 Past Annual Claim Certified Product


ASSESSMENT REPORT


FFB Production 193,344 Tonnes/year

CPO Production 45,919.2 Tonnes/year

Palm Kernel (PK) Production 9,667.2 Tonnes/year

Palm Kernel Oil (PKO) Production - Tonnes/year

1.7.2 Claim Certified Tonnage of FFB

Name of Estates Total Area

(Ha) Planted Area

(Ha) FFB

(tonnes/year) Yield

(tonnes/ha/year)

Bebunga Estate 3,891 2,667 51,040 13.12

Bakau Estate 5,350 3,111 55,941 10.46

Sungai Cengal Estate 4,974 3,949 80,106 16.10

Total 14,215 9,727 187,085 13.16

*Data Source Production Budget January 2014 to December 2014

1.7.3 Claim Certified Tonnage of Palm Product

Name of Mill Capacity

(tonnes/ hour)

FFB Processed

(tonnes/ year)

CPO Palm Kernel PKO

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Bebunga factory 60 187,085 48,486 23.51 10,208 5 - -

*Data Source Production Budget January 2014 to December 2014

1.8 Other Certifications

1.8.1 ISO 9001:2008/ISO 14001: 2004 -

1.8.2 OHSAS 18001:2007 -

1.8.3 HACCP -

1.8.4 Others -

1.9 Time Bound Plan for Other Management Units

Management Unit Location

Hectarage (Ha) *)

Time Bound Plan

Status Mils Estates

Sekunyir PT. Indotruba Tengah District of Seruyan and Kotawaringin Barat – Province of Central Kalimantan

7,734.60 2009 Certified

2010

Manggala PT. Tunggal Mitra Plantations

District of Rokan Hilir – Province of Riau

13,836.00 2009 Certified

2010 Bukit Ajong PT. Sime Indo Agro District of Sanggau –

Province of West Kalimantan

11,652.00 2009 Certified

2010

Teluk Siak PT. Aneka Inti Persada

City of Pekanbaru and District of Siak – Province of Riau

11,134.00 2010 Certified

2011

Sungai Pinang PT. Bina Sains Cemerlang

District of Musi Rawas – Province of South Sumatera

6,513.00 2010 Certified

2012

Sukamandang PT. Kridatama Lancar District of Seruyan and Kotawaringin Timur – Province of Central

14,779.92 2010 Certified

2011


ASSESSMENT REPORT


Kalimantan

Pemantang PT. Teguh Sempurna District of Seruyan and Kotawaringin Timur – Province of Central Kalimantan

16,601.66 2010 Certified

2011

Alur Dumai PT. Lahan Tani Sakti District of Rokan Hilir – Province of Riau

3,759.02 2010 Certified

2012 Teluk Bakau

PT. Bhumireksa Nusasejati

District of Indra Giri Hilir – Province of Riau

25,662.00 2010

Certifed 2011

Mandah 2013

Audited 2013

Mustika PT. Sajang Heulang

District of Tanah Bumbu –Province of South Kalimantan

7,794 2012 Certified

2011

Angsana Mini

Full Manage Plasma (KKPA)eulang

16,000

2010 Certified

2011

2013 Certified

2013 Angsana

PT. Ladangrumpun Suburabadi

District of Tanah Bumbu – Province of South Kalimantan

6,077.00 2010 Certified

2011

Gunung Aru PT. Bersama Sejahtera Sakti

District of Kotabaru – Province of South Kalimantan

12,704.54 2010 Certified

2011

Ladang Panjang PT. Bahari Gembira Ria

District of Muaro Jambi – Province of Jambi

1,202.04 2010 Certified

2012 Bebunga PT. Langgeng

Muaramakmur District of Kotabaru – Province of South Kalimantan

16,361.77 2011 Certified

2012

Pondok Labu PT. Paripurna Swakarsa


14,892.00 2011 Certified

2012

Selabak PT. Swadaya Andika District of Kotabaru – Province of South Kalimantan

10,361.18 2011 Certified

2012

Rantau

PT. Laguna Mandiri


15,299.80 2011

Certified 2011

Betung 2013

Audited 2013

Ungkaya PT. Tamaco Graha Krida

District of Morowali – Province of Central Sulawesi

4,145.00 2011 Certified

2012

Rantau Panjang PT. Guthrie Pecconina Indonesia

District of Musi Banyuasin – Province of South Sumatera

10,139.91 2011 Certified

2012

Lembiru PT. Sandika Natapalma

District of Ketapang – Province of West Kalimantan

8,406.21 2011 Audited

2011

PT. Budidaya Agrolestari

District of Ketapang – Province of West Kalimantan

2011

Audited 2011

MAS PT. Mitra Austral Sejahtera

District of Sanggau – Province of West Kalimantan

8,741.29 2011 Audited

2011

Blang Simpo PT. Perkasa Subur

Sakti

PT. Padang Palma

Permai

PT. Perusahaan Sri

District of Aceh Tamiang and District of Aceh Timur- Province of Nanggroe Aceh Darussalam

6,451.99

1,128.90 2011

Certified 2013


ASSESSMENT REPORT


Kuala

Sime Darby has achieved 39 managament units in Malaysia and 21 Management Units in Indonesia RSPO certified. There was change of the Time Bound Plan under Sime Darby cause the Sime Darby postpone the others certification process. Change of the Time Bound Plan explaination: PT Mitra Austral Sejahtera. There are social issue still unresolved from the Serikat Petani Kelapa Sawit (SPKS) Sanggau, however the improvement are in progress. Sime Darby has informed the Time Bound Plan progress, MUTUAGUNG has consider that Sime Darby still comply with the RSPO requirement for partial certification.


ASSESSMENT REPORT


2.0 ASSESSMENT PROCESS

2.1 Certification Body

PT Mutuagung Lestari

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

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

Website: www.mutucertification.comELetter : [email protected]

2.2 Assessment Team

2.2.1 Lead Assessor and Assessment Team

S-1 1) Taufik Margani(Lead Auditor Witnesser). 2) Oktovianus Rusmin (Lead Auditor Witnessed). Bachelor’s Degree in Social&Political SciencesDepartment of

Anthropology. Specialistsinthe field ofSocial and Cultural(Social Impact &Conflict Resolution) andHCVF. Followed theForestManagementAuditorTraining(FSC Standard), ISO 14001EnvironmentalManagement SystemTraining&SVLK (wood legality) auditors, Indonesian Sustainable Palm Oil (ISPO) Auditor, Management System Certification (ISO 9001-2008/SNI 19-9001:2008) and RSPO Lead Auditor Training by Proforest & Wild Asia in Kualumpur. He wasseveraltimesinvolved in theassessment ofSustainable Forest ManagementCertification(Standard LEI). Had workedat the Center forthe studyof Anthropology, University of Indonesia; and expertstothefieldof SocialTropicalForest Trust(TFT) Indonesia. He was numerously involved theSocialImpactStudyand Identification HCVinOil Palm Plantationsandnaturalforestconcessions. In this assessment activity, he conducted assessment of social and land concession.

3) Yudwi Wisnu Rahmanto (Auditor). Bachelor of Forestry with Silviculture background. He has attended in

selected training, such as Auditor/Lead Auditor Course Quality Management System (QMS) ISO 9001:2008, Timber Legality Assurance System (SVLK), Verification Organization Training C.A.F.E Practices (Starbucks), Organic Standard (EU, NOP, JAS), Forest Stewardship Council (FSC), Program Endorsement of Forest Certification (PEFC) and Organic Exchange for Textile. He also has experience as an auditor and involved in certification program auditing, such as Sustainable Forest Management by FSC FM/COC Scheme, Coffee And Farmer Equity (C.A.F.E Practices) Starbucks, Sustainable Palm Oil by RSPO Scheme, Organic Standard (EU, NOP, JAS) for Coffee Farmer and Organic Exchange for Textile. Currently, he worked at Professional Certification Body and assigned to verify in Social aspect during this Assessment.

4) Ardiansyah (Auditor)Bachelor of Forest ResourcesConservation, Departmentof Forestry, Bogor Agricultural

University. Hehas followedseveralactivitiessuch aspreparingEIA documentfor Palm Oil Plantation and Industrial Plantation Forests, assistance in the GAP analysis, and helped draft the HCV document. It has beenseveraltimes followingauditactivitiesrelated tosustainablepalm oilcertification systemas anauditor. Inthis Surveillance-1 assessedtheenvironmental aspects, soil and water conservation..

5) Moh. Arif Yusni (Auditor) A bachelor of Agriculture, majoring of Plant Pest and Deseases (Plant Protection). He has a working experience for 2 (two) years in oil palm Plantation Company in Indonesia. Trainings attended namely: Indonesian Sustainable Palm Oil (ISPO) Lead Auditor training course. Now he worked at Professional Certification Body. he has beenseveraltimes followingauditactivitiesrelated tosustainablepalm oilcertification systemas an obeserver and auditor. In the assessment activity, he assessed on, best practices, environment aspect, and workers welfare

S2 1. Taufik Margani(Lead Auditor Witnessed).A bachelor of Forestry, Majoring in Forest Management. A specialist in Environment. He had led a number of audits for Sustainable Forest Management in Indonesia (under the scheme of LEI-Lembaga Ekolabel Indonesia/Indonesia Ecolabel Body and FSC-Forest Stewardship Council) and Lead Auditor for FSC Chain of Custody. Other experiences: He was the certified Lead Auditor of IRCA for Environmental Management System and Quality Management System. Since 1999, he had worked for an independent certification body and had conducted a number of Audits of Environmental Management System, Quality Management System and RSPO in Malaysia and Indonesia. Currently, he works as General Manager of Resources Management Certification Division.

http://www.mutucertification.com/

mailto:[email protected]


ASSESSMENT REPORT


2. Bukti Bagja (Lead Auditor Witnesser). Master of Science majoring environment, Indonesia University. He had involved in RSPO assessment and HCV for GIS. The training he has followed namely .ArcGIS, MAPInfo, Global Mapper, ER MAPPER, ERDAS Imagine, Indonesian Sustainable Palm Oil auditor and Awareness RSPO, and Auditor/Lead auditor Management System Certification (ISO 9001-2008)

3. Muardi Marwas (Auditor). Bachelor of Agriculture Bogor Agriculture Institute. Attended RSPO and ISPO Assessment in Indonesia. Hehad been trainedAuditor/Lead auditor Management System Certification (ISO 9001-2008), Awareness HACCP certification, training of RSPO auditor and training of RSPO Lead Auditor, ISPO Lead auditor training, awareness green house gas and WittenessDistributionQualityManagementProcess(DQMP) APMEA. Currently he works for Independent Certification Body.He had involved activities RSPO and ISPO certification assessment as an auditor.

4. Sandra Purba (Auditor). Bachelor of Forestry, Department of Forest Products Technology, Faculty of Agriculture, University of North Sumatra. Have experience working in oil palm plantations Company. She had attended such training: Training Expert of OHSAS General, Training ISPO Auditor, Awareness RSPO, training ISO 22000-2009 andAuditor/Lead auditor Management System Certification (ISO 9001-2008). Currently he worked as an auditor at Certification Body.

5. Brigitta Pritta (Auditor Trainee). Bachelor of Forestry, Department of Forest Resources Conservation and Ecotourism, Bogor Agricultural University. Attended training ISPO Auditor training and certification of ISO 9001:2008 quality management system (QMS).

2.3 Assessment Methodology, Assessment Process and Locations of Assessment

2.3.1 Figure of person days to implement assessment

S-1 Number of auditors : 4persons Number of days for S-1 at site : 3 days Number of working days for S-1 at site : 12 Man days

S-2 Number of auditors : 4persons Number of days for S-2 at site : 3.5 days Number of working days for S-2 at site : 14 Man days

2.3.2 Detail process ofassessment

S-2 The assessment was conducted by measuring the sufficiency of implementation with the consistency done by the PT LMRto the requirements of National Interpretation of the Republic of Indonesia from RSPO Principles and Criteria for Sustainable Palm Oil Production (RSPO INA-NIWG, May 2008 and Scheme Smallholders October 2009) and Supply Chain Requirement for CPO Mill The assessment was conducted in three methods: (1) document review, aiming to observe the sufficiency of types or substances from required documents; (2) interview, aiming to obtain more detailed information and cross check the information; and (3) field observation, aiming to observe directly the sufficiency of implementation on site. Some opportunities for improvement of the results. Surveillance-1 delivered by the auditor MAL to the management unit and the results are the subject will be verified at the next assessment phase (Surveillance-2). Improvement of findings from main assesment findings were observed by auditors at this first surveillance assessment. All information obtained was recorded in Check List of PT Mutuagung Lestari (MUTU) and part of Surveillance report. The assessment program please find Appendix 2

2.3.3 Locations of Assessment

S2 Field visit was conducted at location that has an issue related to company operational. Location is determined

according to result of public consult and result of document review. Determination of location sample refer to

provision of the formula (x= 0,6 √y). Locations which visited on S2 activity are following.

Location 1. Fertilizing at Bebunga Estate, Divisi III, Block F34. To interview an enricher related to compliance of Personal Protective Equipment (PPE), health and safety insurance and area which will be applied with fertilizer. Company has completed the PPE, health and safety insurance and also labors has already


ASSESSMENT REPORT


understand about places which can be applied with fertilizer.

Location 2. Spraying at BBE, Divisi III, Block E45: To interview spraying worker related to compliance of Personal Protective Equipment (PPE), labor health and safety insurance and area that applied with chemist.

Location 3. Spraying at SCE, Divisi I, Block C7: To interview spraying worker related to compliance of Personal Protective Equipment (PPE), labor health and safety insurance and area that applied with chemist.

Location 4. Pabrik Pengolahan Kelapa Sawit (PKS) Bebunga Factory. Field observation related to mill operation from weight bridge, TBS grading on loading ramp, processing mechanism. To survey application of SMK3 at processing station, such as , Thresher, Digester, Nut Cracker, Engine Room, Boiler.

Location 5. Block G/H 24 Boundaries No. 18, condition good. Sungai lintang riparian zone and wetland plant with ferns species and Gelam at bebunga Estate

Location 6. Block B 002, Bebunga Estate. Sungai Lintang Riparian zonedefinedasHCV-4

Location 7. Block B 002, Bebunga Estate.observation HGU boundaries No. LMR 1,condition is goodand the condition of mark has damaged

Location 8. Block B 007, Bebunga Estate. Danum Bolum spring, There aresignswarning aboutHCVandspringsas well ashavethe bufferarea of 8hectares. Thereenrichmentplant with speciesof mahogany

Location 9. Block G8 Well as well of seven well with an area of 3.10 ha planted with plants of Sungkai, ironwood, guava

forest.

Location 10. Block J 56.Bebunga river riparian zone, width ofriver beetwen 4-5 meters, vegetation types is mangrove and Nipah.

Location 11. Block C 064. Observation HGU boundaries No. LMR 16. Boundaries heaped up in the ground, marker still exist.

Location 12. Block C 046. Observation HGU boundaries No. LMR 12, boundaries mark doesn’t exist. Corrosion occurs with swamp water.

Location 13. TPSA Bebunga Block H24. Field observation about waste management

Location 14. Worker Housing Complex (BBE dan SCE). Observation related to health facilities and infrastructure and medical waste controlling. Medical waste is sent to third parties that have a licence to destroy medical waste.

Location 15. Desa Binturung. Interview with society leader regarding to program DC/CSR PT. LMR, social interaction between company and society around plantation area

Location 16. Desa MulyoharjoInterview with society leader regarding to program DC/CSR PT. LMR, social interaction between company and society around plantation area

Location 17. Desa Segendang Interview with society leader regarding to program DC/CSR PT. LMR, social interaction between company and society around plantation area

Location 18. Desa Lintang Jaya Interview with society leader regarding to program DC/CSR PT. LMR, social interaction between company and society around plantation area

Location 19. Sungai Bebunga di Block C 55-56 Sungai Cengal Estate (SCE). Observation and interview with LMR staff regarding to water management and riparian zone.

Location 20. Pintu air di sekitar Block C 64, Div IV Sungai Cengal Estate (SCE). Observation and interview with LMR staff regarding to low land management and surface water is affected by tidal river.

Location 21. Pintu air di sekitar Block C 48 (pintu 36). Sungai Cengal Estate (SCE). Observation and interview with LMR staff regarding to low land management and low and height of water surface wich set by the band wall, water level gauges is avaliable

Location 22. Block C 18-19-20 tahun kegiatan replanting 2013/2014 dan Block C21/22 tahun tanam 2012/2013. Sungai Cengal Estate (SCE). Observation and interview with LMR staff regarding to replanting


ASSESSMENT REPORT


programme, slope area trough terracing and Mucuna planted to minimize degradation and erotion.

Location 23. Block B 020, kegiatan replanting 2013/2014. Bebunga Estate (BBE). Observation and interview with LMR staff regarding to replanting programme, slope area trough terracing to minimize degradation and erotion

Location 24. Desa Binturung (Kepala Desa, Bp. Arhat) dan Tokoh Masyarakat Ds Binturung (Bp. Iwas). To interview village chief II regarding to program DC/CSR PT. LMR, social interaction between company and society around plantation area

Location 25. Desa Segendang (Kepala Desa, Bp. Arjansah).To interview society leader regarding to program DC/CSR PT. LMR, social interaction between company and society around plantation area..

2.4 Stakeholder Consultation and List of Stakeholders Contacted

2.4.1 Summary of stakeholder consultation process.

Summary of stakeholder consultation process Consultation of stakeholders for PT Langgeng Muara Makmur was held by public consultation meeting with internal stakeholders by interviews and local stakeholders conducted by visits to villages and interviews with local peoples. Numbers of input from stakeholders were clarified by

There are 7 (seven) parties are contacted to provide information.

Stakeholder public consultation of PT Langgeng Muaramakmur was held by:

1) Publik Announcement at website RSPO.

2) Sent a letter of invitation to comment andpublic consultation meeting with internal stakeholders by interviews and

local stakeholders conducted by visits to villages and interviews with local peoples

Public consultation meeting with internal stakeholders held on Februari 28th, 2014 and March 02nd, 2014. According

to the result of the meeting, auditors accept verbal input wich will then be verified to the company.

2.4.2 List of stakeholder contacted

Please findappendix1

2.5 Determining Next Visiting

The next visit (Surveillance 3) will be determined one year after this surveillance-2


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3.0. ASSESSMENT RESULT

3.1. Summary of Assessment Report of the RSPO Certification

MUTUAGUNG LESTARI has conducted the 2ndAnnual Surveillance Assessment (S2)at PT Langgeng Muaramakmur –

Bebunga POM,Sime Darby Operation consisting of 1 (one) POM dan 3 (three) Palm Oil Estates. MUTUAGUNG

LESTARI auditors recommended that PT Langgeng Muaramakmurstill was continued the RSPO Certificate and

complied with RSPO Principles and Criteria (P&C) for Sustainable Palm Oil Production, Republic of Indonesia - RSPO

INA-NIWG, May 2008 and RSPO Supply Chain Certification System, November 2011; andrelated to recommendation

there were subjects that the corrective action requests shall be addressed and completed in accordance with the time

frame 30 days for SCCS non compliances, 60 days for Major and next surveillance visit for Minors.

Therefore MUTUAGUNG LESTARI recommends a certificate of compliance is maintained.

Ref Std.

VERIFICATION RESULT of MUTU-Certification

PRINCIPLE #1 COMMITMENT TO TRANSPARENCY

1.1 Plantation and Palm Oil Factory have to give adequate information for stakeholders in appropriate language and forms, to ensure the effective participation of stakeholders in decision-making.

There is an SOP for information request; document number 050/LMR-INF/C11 on 1st December 2010. The entire information requests, which are submitted to the operation unit manager will be recorded, the regular information will be kept based on their standard shelflife & the information requests with no expiration date will be kept for 5 years. The categorization on accessible and non-accessible information for stakeholders is refer to the Law No. 14 in 2008, regarding the transparance of public information. Stakeholders information request and response from the company are recorded in the Stakeholder’s Log Book. For instance the information request and response in 2013-2014, such as: a. Bebunga Estate

Letter from village regarding the invitation for the third the commemoration (2013) ofindependence day inKeladen village by conducting football and volley ball match (13rd September 2013) has been responded by Bebunga estate manager with a letter No. 075/BBE-psgt/IX/2013/S by permitting personnel to participated on that event at non-working hour(from 14.00 Wita) (on 17th September 2013).

b. Sungai Cengal Estate

Letter from Head of Binturung village number 590/005/KD-BNT/II/2013 regarding the request for re-planting socialization on 5th February 2013 which has beenresponded by Sungai Cengal manager with a letter number 02/SCE-psd/II/2013/S by conducted the socialization on 15-16 February 2013 with a resource person from PSD and SCE staff (14th February 2013).

c. Bebunga Mill

Letter from head of Mulyoharjo village, number 03/I/KD-MHJ/2014 regarding the invitation for Musrenbang (Musyawarah rencana pembangunan desa) with 2015 budget plan, which located in Mulyoharjo village hall (7th January 2014) and has been responded by the company by attended the musrenbang event.

Letter from the university of Lambung Mangkurat Faculty of Technicnumber 033/UN8.131.6/SP/2014 regarding the request for internship (29th January 2014) has been responded by the Bebunga mill’s manager by approved the request for intership (07th February 2014).

Status: Full Compliance

1.2 Management documents are publicly available, except where this is prevented by commercial confidentiality or


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where disclosure of information would result in negative environmental or social outcomes.

SOP for information request (050/LMR-INF/C11) points out the categorization on accessible and non-accessible information for public.Document’s shelf life that mentioned in the SOP for information request (050/LMR-INF/C11)is for5 years. Hereby the accessible information for public (stakeholders):

1. Broad of Land Clearing 2. Jamsostek payment receipt 3. Payment receipt for personnel medical treatment 4. Public facilityfor personnel 5. Data of pest and disease attack 6. Data of light vehicle and heavy equipment 7. Data of supporting machines 8. Data of CSR program that has been implemented 9. Data of bridges 10. Data of the length of the road 11. Data of work’s building 12. Data of public’s building 13. Data of school’s building 14. Type of applied/used fertilizer 15. Type ofapplied/used Agrochemical 16. Data of SKU personnel 17. Data of students

Meanwhile the non-accessible information for public(stakeholder) are:

1. Data of company’s financial balance sheet 2. Data of company’s business strategy 3. Data, which related to state confidentiality 4. Data of company’s personnel 5. Company’s permits 6. Technical SOP 7. Personnel’s medical related data


PRINCIPLE #2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

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

Company has followed the regulation, which can be proof withthe regulation list (up date) form dated 1st December 2012 as well as the evaluation. The evaluation points out the compliance on the regulation and complete it with evidences. For instance:

1. The company has complied the regulation No.5 in 1960 with an evidence of HGU certificate (No. 12 15.533 ha, No.4 828,774 ha, Total 16.361,77 ha), and for an area of ± 1.100 ha there is a legal evidence of the location permit and HGU. This information is stated in the permit document.

2. RKL and RPL report, which related to Government Regulation (PP) 27 in 1999, have been submittedevery six monthseven though there was a delay. The company has taken the intensive internal communication in order to speed-upthe finishing of the report. Organization can present the delivery note of the RKL and RPL report to the Plantation Service Department (PSD) in Banjarbaru.

3. The usage of Parakuat has been stopped since March 2011, which is in accordance withPermentan No. 7/Permentan/SR- 140/2/2007and internal policy of Minamas management.

4. The usage of chemical material - which refers to Type I A or B chemical material under WHO’s classification - is not used in the estate.


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5. Compliance on riparian area is in accordance with field evaluation, which already more than 50 meters distance that in accordance with the Law No 41 in 1999.

In case there is a change on the regulation, the company will make a revision or periodic evaluation toward the existing regulation. Evaluation on the compliance toward regulation is by revising the regulation list, which has been conducted on 1 December 2012. The evidence on compliance toward regulation such as:

1. Minimum wage for South Kalimantan Province in 2013 is in accordance with South Kalimantan Governor Decision Letter No.188.44/0502/KUM/2012 on 22nd October 2012. Based on this decision letter, PT. LMR personnel wage will follow the provincial minimum wage and start into effect in January 2013.

2. Government regulation No. 27 in 2012 regarding the environment permit. The change on the environment permit is mandatory to be submitted if there is a change on business’s type. Until now, there is no business type’s change in PT. Langggeng Muara Makmur.

There is a regulation compliance evaluation form for Estate and mill. The company has completed the compliance evidence(document/program), for instance Law No 5 in 1960 article 28 regarding the HGU. It is mentioned that the HGUevidenceis HGU certificate No. 12 (15.533 Ha), No 4 (828.774 ha) with a total area of 16.361,77 ha. There is regulation compliance evidence in a form of regulation list (up date) on 1st December 2012 along with its evaluation. The evaluation points out the compliance on every regulation and completeit withevidence. The compliance evidence toward local and national regulation, such as:

Plantation Business License/ Izin usaha perkebunan (IUP), which is in accordance with the Decision letter No. 188.45/386/KUM/2009 for an estate with an area of 15.533 ha in Pamukan Utara sub district, Kotabaru district, Kalimantan Selatan andmill with a capacity of 60 tones/hour.

Registration letter for plantation business No. HK.350/795/Dj.Bun.5/XI/2001 for an estate with an area of 828,7741 ha inPaser District.

Semester (6 months) report regarding the Plantation Business License (IUP), monitoring report/environment management. PUP report toplantation agency on 12nd February 2014.

Land ownership is in accordance with Law 5 in 1960. Broad of thecertified HGU 12 is 15.533 ha. Broad of HGU No 4 covers an areaof 828,774 ha.

Quality standard monitoring for vibration is in accordance with ministryof environmental regulation No. 49 in 1996

Quality standard monitoring for smell is in accordance with ministry of environmental regulation No. 50 in 1996.

Quality standard monitoring for noise is in accordance with ministry of environmental regulation No. 48 in 1996.


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

Based on field visit in Segendang village and interview with PSD PT. LMR staff, there is a land dispute in Bebunga Estate, which is under the resolution process. The area of land dispute is ± 594 Ha,including some villager from Kladen village Tanjung Aru sub district& Segendang village Batu Engau sub district Paser district Kalimantan Timur province. The management ofPT. Langgeng Muara Makmur has stopped the operational activity on the dispute area since 18th May 2009 (areal with status quo). During the surveillance, the company has taken sufficient steps to settle the conflict by conducting dialogue and mediation with assistance from local government, such as: On 15th May 2013 has been conducted the opinion hearing between Segendang community and government of

Batu Engau, which mediated by Paser resort police. Community’s request is to solve the conflict without bring it to the court.

On 05 June 2013 has been conducted the further meeting to discuss the land and plantation compensation in the location permit for an area of 1.162 Ha.


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On 27 June 2013 there was a meeting, which mediated by Paser resort police and the result of the meeting was to conduct the measurement by the independent team as a guidelines for further process.

On 06 July 2013 has been conducted the measurement by Baplan Samarinda, which accompanied by police officers.

On 17 July 2013 has been conducted the further meeting between PT. LMR and segendang villagers On 30 July has been conducted the further meeting between PT. LMR through PSD and Lawyer and community

which represented by head of village and head of sub district as well as the police department. The result of the meeting was the agreement from head of Segendang village to build the plasma plantation scheme and the company offered compensation amountIdr. 250.000.000,-

On 03 August 2013 head of village and community leader states that community in Segendang village is not agree on the compensation amount, which is Idr. 250.000.000 with a reason that amount of money is too small and community stick to request the compensation amount Idr. 2.500.000 per Ha.

Beside the Segendang village, there is a record on conflict resolution with other communities, such as Binturung and Lintang Jaya village as highlighted in minute of meeting between Binturung community, Lintang Jaya community with PT.Langgeng Muaramakmur and witnessed by the government of Pamukan Utara sub district for the land conversion resolution in the Lintang Jaya transmigration area.By the above agreement, the land conversion conflict betweenPT. Langgeng Muaramakmur and community in Binturung and Lintang Jaya village is closed. The minute of meeting is signed by head of Binturung and Lintang Jaya village, representative from PT. LMR and government staff from Pamukan Utara sub district (head of sub district).The meeting held on 16th January 2013, there are also attendance sheet and photos.

In general, for community’s plantation that located inside company’s HGU estate area, the company has taken the FPIC (Free and Prior Informed Consent) mechanism, as below records: 1. Location permit on 5th March 2008 from government of Kotabaru district, which has been follow up with an area

assessment by “B”committee and involved several institutions as well as community’s representative.

2. In the process of gaining the HGU certificate, company has identified their areas which located inside company’s location permit and conducted negotiation to take these area through land compensation

3. After the land compensation for some areas, the company got the HGU certificate, which covers an area of 14.892 Ha (No. 137/HGU/BPN/97 on 31st October 1997) that valid until 22nd Nov 2032 (35 years).For an area that still under the HGU process, there iscommunity’s compensation document dated 06/08/1996 with an area of 71.96 Ha to 42 people, meanwhile the LC area has been compensated in 2007 with an area of 557 ha for 41 people, covering the 326 ha land, which belong to segendang community with 24 land owners and 231 ha,which belong to Keladen community with 17 land owners and during the measurement in the field, there is an additional area that belong to the company for about 594 Ha from the total compensated area of 557 Ha. The additional area is 37 Ha.

The document’s verification shows that the company has the SOP for land conflict resolution, which stated in document No. 056/LMR-PKC/C12. This procedure has included the categorization of conflict type (mild, medium and heavy) and temporary shut down the operation activity in conflicted area by following an advice from local government and management in the field. This SOP has been socialized to surrounding community by points out in the socialization record in 2012 and 2013,which has been conducted in the entire local villages. There is a Buku Tugu (Tugu Book) as an evidence that the boundary management has been carried out (boundary stake installation / boundary Pal) in the entire estate area of PT Langgeng Muara Makmur, which consist of:

Bebunga Estate (in the process of HGU admission)= 1.100 Ha (main pal 29 units, secondary pal 145 units); 30th July 2002.

Sungai Cengal Estate = 4.974,20 Ha (main pal 23 units, secondary pal 64 units);

Bakau Estate = 5.349,91 Ha (main pal 58 units, secondary pal 234 units); There is also an SOP for BPN stake’s maintenance (057/LMR-PPBC/C13), monitoring result for BPN stake & follow up actions for BPN stakes maintenance. The maintaining steps that have been carried out such as cleaning the area


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surround the stakes& painting the stakes. Other documents such as:

1. Stake’s maintaining program for period 2013/2014 in Bakau Estate 2. HGU Stake’s assessmentprogram for period February 2014 in Bebunga Estate

Total conversion area of PT. Langgeng Muara Makmur is 17.461,77Ha;while the owneship document such as the existing HGU certificatejust covers an area of 16.361,77meanwhile another ±1.100 Ha has no ownership certificate. The legal land ownership document, such as:

(1) HGU CertificateNo. 133/HGU/BPN 1997 was issued by land agency of Kota Baru District, Kalimantan Selatan province with an area of 15.533 Ha.

(2) HGU CertificateNo. 77/HGU/BPN/97 was issued by land agency of Paser District, Kalimantan Timur province with an area of828,7741 Ha.

(3) The final progress of HGU certificate registration for an area of 1.162,22is available. For instance: letter from the Chief Director &Director of PT. Langgeng Muara Makmur (Number: 203/LMR/UM/PSDS/X/12, on 23rd October 2012 tohead of Paser district, regarding the request to extend the location permit of PT. LMR as well as the carbon copy and receipt to each and every relevant agencies (BPN of Paser district, agriculture and plantation agency of Paser District & Secretary of Paser District). There are also other documents such as: - Letter fromagriculture and plantation agency Tanah Grogot Number 525/93.2/PUPP-BUN on 13rd June

2012 to chief director of PT. Langgeng Muara Makmur regarding the incomplete documents for the HGU certificate registration.

- Letter from land agency of Paser District number 04/400.9/64.01/IX/2012 on 3rd September 2012 to Paser Reagent regarding the request for location permit recommendation to prepare the registration of PT. Langgeng Muara Makmur IUP.

Hearing with national land agency mentions that there is no indigenous land and traditional right within the concession area. Community in Mulyoharjo village mentioned that there is no conflict between Mulyoharjo village and the company.


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

Based on official letter from Kotabaru district, Kalimantan Selatan Province, No. 000/03/KP-10, on 2nd September 2010 regarding the status of indigenous right, has been stated that so far there is no indigenous land in the area of Kotabaru district.

In another hand, based on Social Impact Assessment (SIA) that carried out by the company, it’s known that in general there is no indigenous land over the area. Land ownerships area usually belong to individual right from a heritance, land trade, forest opening etc. for the land with a status of private ownership, the company has showed the evidence of compensation as mentioned in the previous criteria 2.2.

Confirmation result in public consultation with villages surround the PT. LMR area such as Mulyoharjo, Lintang Jaya, Segendang, Binturung and Sakadoyan shows that there is no violation on traditional right and right based on law from the company. Land ownership in plantation location and private land that become a plantation area has been compensated in accordance with agreement, except for lands that still under the negotiation process.


PRINCIPLE #3 Commitment to long-term economic and financial viability

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

LMR able to show the budget document for period 2013/2014 and the projection for 2015-2019 or company’s work planfor 3 years ahead. This document consists the information about personnel, building location, SKU wage for daily payment/monthly payment, salary/ wage component, the history of fertilization, analysis/ evaluation on the need of FFB transportation, plantation cost analysis including the long range replanting and the annual yield projection. The budget document has been prepared and available in each estate such as Bebunga Estates (BBE), Bakau Estates (BKE) and


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Sungai Cengal Estate (SCE). Yield projection per ha for each estate,such as:

Year Yield Per ha (Tones/ha)

BBE

Yield Per ha (Tones/ha)

SCE

Yield Per ha (Tones/ha)

BKE

2013/14 20.91 21.82 22.68

2014/15 20.56 21.00 21.00

2015/16 20.41 19.56 18.17

2016/17 18.75 20.06 17.67

2017/18 17.60 20.33 16.64

2018/19 16.68 19.84 15.70

For Bebunga mill, the projection for production is available from 2014/2015 to 2017/2018, which describes the incoming FFB from each estates and FFB from outsideestate (KKPA Sungai Cengal), processed FFB, extraction rate (%) and CPO target 23.50% (OER) and Palm Kernel 5% and FFA 5%. It’s explained by the BBE and SCE estate manager that the replanting activity is based on the plantation’s SOP (Agricultural Reference Manual No. 110/EST-ARM/08) with a replanting criteria: the age of plantation is above 20 years old and the average production is less than 20 tones/ha or has an average height of 15.1 meters. Moreover, the used replanting guideline is the Memorandum from Head Plantation Operations (HPO) on 29th March 2011. The replanting program is conducted based on planting year, number of broad block (Ha) and yield (tones per ha) starting from 2010 -2011to 2013-2014. The purposes of this policy are for the sustainable production and to ensure the supply of FFB to the mill. LMR party with 3 estates has prepared the 5 years replanting projection (long range replanting), which can be seen in 2013/2014 and 2025/26, for instance: - BBE in 2013/2014 - 200,56 ha, 2014/15 – 217.59 ha, 2015/16 – 187.19 ha, 2016/17 - 253.39 ha, 2017/18 – 255.18

ha, 2018/19 – 226.45 ha and so on. - SCE in 2013/2014 - 169.80 ha, 2014/15 –260.09 ha, 2015/16 –258.5 ha, 2016/17 – 234.36 ha, 2017/18 –267.35 ha,

2018/19 –281.75 ha and so on. - BKE in 2013/2014 - 305.86 ha, 2014/15 – 304.51 ha, 2015/16 –229.50 ha, 2016/17 –216.43ha, 2017/18 –223.61

ha, 2018/19 –234.48 ha and so on. For each estate, the replanting is explained in the work plan document, which related to preparation and nursery activity, with a total annual nursery of 146,040 seeds from 2013/14 to 2018/19. For the replanting work, every LMR period can show the replanting map for each projected estate.


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

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

There is no significant change in PT. LMR plantation operation’s procedure from LC to harvest and transportation.The entire procedure remains the same such as the Main Assessment (ST2) and still eligible.

Meanwhile for the existing procedure in the mill of Bebunga Factory, there is one (1) new document, consist ofproduct identification procedure and product traceability in Minamas Plantation mill No. Policy: RSPO/501/SCCS/LMR) Rev. 01, on1st November 2012. This procedure is set to fulfill PT. LMR supply chain system model, which is a Mass Balance.

The evaluation activity and monitoring toward the operation activity has been carried out regularly with a period of: daily, weekly, monthly and annually by the internal monitoring department.

(1) Internal audit 4 (four) months, conducted by internal auditor fromRegion Office, (2) Monthly Safety Officer, conducted by Safety Officer.


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(3) Monthly quality evaluation, conducted by PSQM. (4) Comprehensive audit every 6 (six) months, conducted by Mill Advisory and Plantation Advisory from

Kualalumpur.

Type of annual monitoring is work accident report in 2012 in each plantation and mill’s operation unit.

Record over the entire plantation and mill’s activity has been well documented, such as: daily production report on 16thJanuary 2013, where the entire operation activity is well monitored (CPO/Kernel processing. Summary of Sustainable Product.

The company has had adocumented procedureand it’s well implemented and monitored periodically. The procedure for estate operation is started from land clearing, replanting to harvesting, shich stated in the Agriculture Manual reference agronomi

a. Agricultural reference manual documentNo. 110/EST-ARM/13, endorsed on 16th September 2013 by Mohd Ghozali Yahaya, which regulates the planting material, nursery technique,replanting, land preparation, the density of harvesting, harvesting age, area maintenance, fertilization, fertilization over the young plantation, the application of empthy fruit bunches, mill’s liquid waste application, canopy management, water management in beach and cultivation in peat area, ablasi, criteria of ripe fruit, harvesting spins, collection ofbrondolan, plantation protection, weed control, the establishment of cover plantation like nut’s plant and the record of rainfall.

b. Agricultural Reference Manual, 110/EST-ARM/08, Minamas Plantation, endorsed on 19thAugust 2008 by the CEO (Franky Anthony). No Copy: 20.11.12, distributed on 22nd December 2008. Consist of: nursery technique, replanting, land preparation, plantation maintenance, fertilization, fertilization over the young plantation, TBM fertilization with empthy fruit bunche, ablasi, criteria of ripe fruit, harvesting spins, collection of brondolan.

Palm oil mill has a controlled procedure from accepting the FFB to the CPO dispatch, starting from accepting fruit (Doc110/POD-FAC/07), sterilization (dok.110/POD-FAC/07), Striping (dok. 110/POD-FAC/07), Digesting (dok.110/POD-FAC/07),Pressing (dok.110/POD-FAC/07), clarification(dok. 110/POD-FAC/07), the separation of nut from fiber (dok.110/POD-FAC/07), kernel station(dok.110/POD-FAC/07), oil palm collection (dok.110/POD-FAC/07). Regarding the traceability of the CPO origins, the company has a Supply Chain Procedure for product’s traceability (058/LMR-KP/C13), which issued on 1st December 2010. The purpose of this document is to identify raw material and end product in order to find out the correlation between raw material and product quality. Internal audit over the mill and estate’s operation activity is conducted every year. The estate operation’s evaluation is conducted by Plantation advisory, while mill’s operation by the Mill Advisory. Evaluation/monitoring over the quality and compliance to the existing SOP.The evaluation/monitoring result is stated in written report that submitted to the management and Head of Office for the performance evaluation. The report has been done with an on-line procedure. The plantation advisory evaluation over the Sungai Cengal estate on 26thand 27th November 2013, meanwhile for Bebunga estate on 17th – 18th December 2013 by Mr. Mahmood Bakar. Theoperation’s evaluation covers the quality evaluation, FFB evaluation, productivity evaluation, fertilization evaluation, and water management evaluation, replanting evaluation and line site management’s evaluation.

The evaluation over mill advisory for Bebunga mill on 28thand 29th November 2013 by Mr. Shahar abd. Kadir. The operation’s evaluationfor safety standard in sterilizer station, sludge oil di waste ponds. Some findings/comments/issues has been revised.


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

Company has conducted the soil analysis every 5 (five) years and leaf analysis every 1 (one) year. The company has had the record for these activities, for instance:

1. Final report of Semi-Detail soil survey in Cengal Estate (in 2008), Bebunga Estate (in 2009) and Bakau Estate (in 2009). In every reports is attached the laboratory analysis result for soil sample in each SPL, meanwhile the measured parameter, such as: the texture, acidity (pH), the C, N, P, K, Mg, Ca, Na, BS, CEC, Al and Hunsure. Based on information from MRC’s personnel, the semi-detail soil survey has been carried out every


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5 years. 2. Report of Leaf sample analysis, which conducted by Minamas Research Centre in 2012, the available

information is based on the soil survey result, including block codeand planting year of the sample as well as mineral composition in the leaf (Ash, N, P, K, Mg, Ca& B).

Result from the soil and leaf analysis is a guideline to set the fertilization’s reccomendation (organic and un-organic)as an effort to maintain soil fertility within the area of PT. LMR. This is presented by the existing of fertilization’s reccomendation document in 2012 – 2013 for Bebunga estate, Sungai Cengal and Bakau estate. Records for the above activity, such as:

1. in Sungai Cengal Estate until December 2012 for budget period 2012 -2013 the NK blend fertilization has been implemented for about 777.441 kg from the first plan of 2.324.896 kg and the HGFb fertilization of 20.407 kg from the plan of 20.407.kg. Meanwhile, for the empthy fruit buches application in division 2 has been implemented for about 1.617 tones from the first plan of 4.534 tones.

2. In Bakau Estate until December 2012 for budget period 2012 -2013 the NK blend fertilization has been implemented for about 494.198 kg from the first plan 1.670.006 kg and the HGFb fertilization of 11.357 kg from the first plan 18.621kg.

Based on information from company’s personnel, the fertilization activity for 2012-2013 was a bit delayed due to high rain fall in the first end of year (July – December 2012), even though the company has had the action plan to finish the fertilization program. The company conducted the soil analysis every 5 (five) years and leaf analysis every 1 (one) year. The company has had the activity records, for instance:

1. Final report of Semi-Detail soil survey in Cengal Estate (in 2008), Bebunga Estate (in 2009) and Bakau Estate (in 2009). In every reports is attached the laboratory analysis result for soil sample in each SPL, meanwhile the measured parameter, such as: the texture, acidity (pH), the C, N, P, K, Mg, Ca, Na, BS, CEC, Al and H unsure. Based on information from MRC’s personnel, the semi-detail soil survey has been carried out every 5 years.

2. Leaf analysis by the research team in June 2012 has been carried out for fertilization recommendation analysis

in 2013/2014.

a. Fertilization recommendation is drafted based on the soil and leaf analysis in order to sustain and to improve soil fertility. The research team recommended the un-organic fertilization in 2013/2014 such as the HGFB/Borate, Rock Phosphate, NK Blend and kieserite. Borate doze is 0,1 – 0,12 kg/tree, Rock Phosphate 1,5 – 2-kg/trees, NK blend 2,5 – 4-kg/trees and kieserite 1 – 1,25 kg/tree. To maintain and to improve soil fertility through the un-organic and organic fertilization. The realization of un-organic fertilization is under the process and in accordance with the recommendation. The realization is 499.353 tones.

b. Realization in February 2014: NK Blend program 815.570 tones and the realization is 205.920 tones. Realization of Rock Phosphateis 50.015 tones. Realization of HGFB is 21.629 tones. Realization of Kieseriteis 40.558 tones. RPfertilization, HGFB, kieserite remains conducted, even though the program/planis in March. The company is trying to optimize the timeand personnel.

In addition to the un-organic fertilization, the organic (empty fruit bunches) is applied to the estate area. Theempty fruit bunches (FFB) is about 668 tones (in January) and 478 tones (in February).


4.3 Practices minimize and control erosion and degradation of soils.

There is identification over the marginal and less fertile soil by using the visual method such as the observation on the leaf’s appearance; furthermore, the company has conducted the annual leaf analysis related to soil fertility indicator and recommendation for fertilization. The actual identification over the marginal soil in a form of map is not done yet and required further consideration to complete or draft the marginal or less fertile soil map based on visual method such as the color of leaf, low productivity to separate the erosion control and land degradation by applies the empty fruit bunches


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or other treatments. (OFI#2) PT LMR semi-detailed soil survey reference for every estates, which issued by the Minamas research department in 2008 explains that the land with a sloping area more than 15% or hilly up to mountainis recommended to establish the terrace ring management, U shape front staking and silt pit. There is no peat area being identified within the PT LMR’s area. Based on interview with personnel from each estates, it’s known that land management, which related to land degradation and erosion for silt pit installation and water management already exist, nevertheless this activity was carry out by the maintaining method. For the empty fruit bunches application, midrib, Neprolephis cultivation, establishing the terrace ring andtapak kudaare continue to be installed and to be maintained. Based on field visit in Block C18-19 (SCE) and Block B020 (BBE) Replanting with an average sloping area more than 15% was done by establishing the terrace ring based on the contour in order to control the erosion and to make the harvesting process easier. Moreover, in each side of terrace is cultivatedwith nut tree like Mucuna and Pularia Javanica in order to control the erosion. For narrow or slope area (0-3%) is recommended to apply the water management or the installation of water gate in order to manage the level of surface water to prevent the land from sunken as well as to maintain soil fertility, for instance: observation during the field visit such as water gate in Block C-48 (SCE) and in Block C-64 Div IV (SCE). LMR presents the road maintenanceprogram within its plantation area. This data explains the plan and the implementation of monthly road construction within a year, which consists of road access, main road, fruit collection road and batu/pinggan road. LMR activity is emphasizing on the maintenance and road pavement. Based on field visit, the condition of road access, main road, and collection road and batu/pingganroad are well maintained where the harvested FFB is easy to access.


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

Protection over water flows and wet land including to protect and to maintain riparian area during and before Replanting. Based on field visit toBlock C55-56 S Bebunga (Sungai Cengal Estate), the riparian area has been cultivated with trees with planting year above 5 years old, which are proved by periodic monitoring and the LMR has conducted the maintenance activity by installing the ban board to keep the riparian area, not to undertake spraying activity near and inside the riparian area, periodic inventory on the existence of wildlife and flora. Furthermore, based on field observation and interview over the replanting activity - in Block C 18-20 in 2013/2014 in Sungai Cengal Estates that side by side with water source HCV 4,- explains that the replanting activity is considering the high conservation value area (HCV) for instance: riparian area, water source or other sites, which being identified as an HCV area. Replanting also consider the HCV buffer area to keep this area as a part of protected HCV area. The company has made a boundary for area along the river and reservoir; as well as periodically conducted the river’s water quality testing (every 6 months) in 3 locations, such as Tamiang river, Bebunga river and Lintang river. PT LMR also conducted reservoirs’s water testing in 7 locations such as 1 reservoir in bebunga factory, 3 reservoirs in Cengal Estate and 3 reservoirs in Bakau Estate.Water management within the water source area has been set as an NKT area with a broad of 8 ha and has been built a water reservoir from water source; in addition, water source area has been cultivated with some trees such as mahoni. In environment monitoringreport (three-month IV) for periodOctober – December 2013, the measurement result in December 2013 are: for inlet pond, BOD 35.880 Mg/L and for outlet pond, BOD 1.245 Mg/L and are under the threshold of ministry of environment decision/ Kepmen LH 28/2003 (5000 mg per liter) and there is an evidence for the report deliverer to BLHD Kotabaru, which dated 24-2-2014. Liquid waste examination is carry out by the laboratory of commodity’s examination and environment, research center and standardization, Badan Pengkajian Kebijakan Iklim dan Mutu Industri Banjar Baru Kalimantan Selatan The company has showed the record on water usage for FFB management and mill’s cleaning process for period


ASSESSMENT REPORT


January–December 2013. With a monthly average usage is 16,200 m3 and water/FFB average usage is 0.9 m3/tones.


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

The company has taken several pests and diseases control program, such as: 1. Holystic pests and disease control practice, which covers several steps such as: census, implemenation BOB

(Barn Owl Box), Benificial Plant, Pheromone; monthy schedule for every year; and evaluation. 2. There is also an SOP for palm oil plantation protection (No. Policy: 110/EST-ARM/08), which regulates pests’s

prevention and control by using biological or chemical material. For instance: a. Prevent the Baculovirus oryctes’s attack by cultivating the Mucuna SPnut on a right and left side of palm

oil tree (older tree) as well as on theintersection of old trees b. Control the pocket caterpillar and fire catterpilar by monitor and evaluate the sign of attack; and use

beneficial plantation to control the pest naturally and to increase the predator and parasite of pocket caterpillar and fire catterpilar

c. Rat control by detection and census the rat’s attack with a 3-months interval; as well as to utilize the owls.

There is a record on pest and disease control activity which carried out by the company, for instance:

1. Bakau Estate Based on verification in 2012, there are pest attack above the economic threshold such as fire catterpillar attack (the economic threshold is 5 catterpillars/midrib) in September 2012 (the average catterpillars/midrib is 19,93), in October (the average catterpillars/midrib is 29,90) and in December (the average catterpillars/midrib is 36,2), meanwhile for other pests attack is still under the economic threshold. Based on document’s verification and field visit, the pest controlling efforts has been carried out for blocks with the attacks above the economic threshold. The company has conducted the owl monitoring, based on observation in December 2012, from 66 owl huts, there are 29 owls, 19 owletsand 40 eggs.

2. Sungai Cengal Estate Based on document’s verification in 2012, there are pest attack, which above the economic threshold, such us the fire catterpillar attack (the average economic threshold is 5 catterpillars/midrib) in September (average economic threshold is 98,38 catterpillars/midrib), in October (average economic threshold is 15,17 catterpillars/ midrib) in December (average economic threshold is 32,20 catterpillars/midrib), meanwhile for other pests attack are still under the economic threshold. Based on document’s verification and field visit, the controlling efforts have been carried out for blocks with the number of attack above the economic threshold. The company has conducted the owl monitoring, based on observation in December 2012 from 56 owl huts, there are 16 owls, and 1 owlet.

The company has conducted monthly pesticide toxicity monitoring, for instance the pesticide toxicity monitoring in December 2012

Pesticide The usage of active material (L)

Active material per Ha

(L/ha)

Active material pertonesFFB L/tonesFFB

Prima up 887,76 0,281 0,0214

Touch down 453,93 0,1437 0,0109

Decis 84,70 0,0268 0,0020

Meta prima 75,81 0,024 0,0018

Starane 20 0,0063 0,0005

Kenlon 53 0,0168 0,0013

Dejavu 109,9 0,o348 0,0026

The identifiedpests are rats and leaf-eater caterpillars. Using an adequate holistic pest control has effectively controlled


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the pest. The census over leaf-eater caterpillars has been continuing with a 2-weeks rotation. The development of beneficial plant (Turnera subulata, Casia cobanensis, Antigonon leptosus) in estate with a slow attack. For about 1245,66 ha (prime data in January 2014) from Division 1 and 2 of Bebunga estate has been attacked by the leaf-eater caterpillarsSethotosea assigna. Thecontrolling has been conducted in an area of 1740,46 ha. After the controlling, the census will be carrying out again. The rate of attack is declining after the fogging to 243,48 ha. Three method of monitoring, like detection, census and control have been adopted. The attacked area is identified inside the estate map to make the monitoring and controlling easier. The development of beneficial plant in the attacked estate is continue, for instance Field B003 514 meters, Field B005 110 meters, Field B006 400 meters, Field B007 200 meters, Field B023 248 meters, Field B029 244,56 meters, Field B031 260,88 meters. BOB (Barn owl Boxes) monitoring is being managed and being monitored every month. The entire 53 BOB are spread out in Division 1, 2 and 3 Bebungaestates. The entire BOB are identified in the estate map in order to make the monitoring and maintaining easier. The rat’s census has been running. The census result in January 2014 showed that there was no rat’s attack.

Toxicity monitoring has been carrying out every month in accordance with the number of used pesticide. Below is the usage of active material (liter of active material/ ha) for period July 2013 – January 2014.

Pesticide Sungai Cengal Estate

Usage of active material (L/kg)

active material per ha

(L/ha)

Active material per tones FFB L/tones

TBS

Glyhosat 2455 0,016 0,013

Fluroksipir (supremo) 381 0,006 0,005

Metil metsulfuron 161 0,003 0,002

Triklopir 1698 0,011 0,009

Amonium glufosinat 172 0,006 0,000


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

The used agrochemicals areMetaprima (Methyl metsulfuron), Decis/Matador (Delthametrin), Prima up (Isopropilamna glyposat). Visit to agrochemical warehouse in Bebunga and Sungai Cengal, some storedagrochemicals have been registered and licensed. The company no longer using the paraquatto control the weed as well as brodifakum to control rats. The pesticides are controlled and are documented, including their active material, number of active material being used, total usage per Ha. Thatch control, gawangan maintenance, piringan, pasar rintis, and leaf-eater caterpillar’s control. The actual doze is below the recommended doze as stated in the product package. For instance: Delthametrin to control leaf-eater caterpillars. Glyphosat to control broad-leaf and narrow-leaf weed, Glyphosat with an active 0,016 liter/ha or 0,013 liters/tonesFFB. Fluroksipir with an active material 0,006 liters/ha or 0,005 liters/tonesFFB, Methyl metsulfuron 0,003 liters/ha or 0,002 liters/tonesFFB, Triklopir 0,011 liters/ha or 0,009 liters/tonesFFB, Amonium glufosinat 0,006 liters/ha. The monitoring data inJuly2013 – January 2014. Spraying officers have been trained; they understand the method of using chemical material. PT Dharma Guna Wibawa carried out the spraying trainingon 21st April 2011. Interview with spraying officers shows that their competence is quite good. They understand type of used pesticide; they not spray within the conservation area/ riparian area/HCV. The company used several agrochemical type to control pests and diseases. But the audit team found the chemical material type Kenlon (with an active Triklopirmaterial) and Metafuron (with an active Metil Metsulfuronmaterial), which


ASSESSMENT REPORT


have not been registered to related institution, such as chemical warehouse in Sungai Cengal Estate and Bebunga Estate. Non-compliance CAR No. 2014.01 with mayor nonconformity Verification,19th March 2014 Agrochemical, type Kenlon (with an active Triklopir and Metafuron material as well as the Metsulfuron have been registered in pesticide commission book of the ministry of agriculture 2012. Both of these agrochemicals are eligible to used in Indonesia. The company shows improvement, for instance: - Reccomendation letter for pesticide usage and storage from manpower and transigration department for Kenlon and

Metafuron, on 1st April 2014. - Copy of distribution permit for kenlon and Metafuron material from theDirectorate of fertilizer and pesticide in 2012. Non-compliance CAR 2014.01 is closed The mechanism for handling the agrochemical waste is available(Doc001/SOP/LMR/2013, on 15th October 2013). The pesticide packages were rinse, be destructed and sent to the temporary hazardous waste landfill. Field verification shows:

a. There are pesticide package that have not been managed in accordance with the pesticide package handling mechanism (001/SOP/LMR/2013, on 15 October 2013) where the empthy packages should be cleaned/ rinsed, be destructed and sent to temporary hazardous waste landfill.

b. Identification shows that there is a former pesticide packages that have beenstored more than 15 days in Sungai Cengal Estate’s warehouse (BLH reccomendation letter No. 660/416/BLHD on 16 Nov 2012). For instance: duration of former pesticide package delivery in September 2013 and in February 2014 from Sungai Cengal estate to Bebunga mill.

Non-compliance CAR No 2014.02 with mayor nonconformity Verification on 19th March 2014 The company has delivered the hazardous waste every 2 weeks and has washed the packages in accordance with company’s SOP. The company presents improvement evidence, such as:

1. Hazardouse waste delivery has been regularly conducted every 2 weeks. The delivery day is every Saturday. 2. Improvement evidence such as packages washing photos and minutes of hand over arein accordance with the

existing SOP. Non-compliance CAR 2014.02 is fulfilled. There is a medical examination for spraying and watering personnel in SCE and BBE, the medical examination conducted by Prodia clinic and Healthy Care on 14 December. Number of BBE personnel is 16 officersand SCE 15 officers, and based on document’s review, it’s known that personnel are in a normal medical condition and are fit to work. There is also a paramedic evaluation to check medical condition of spraying personnel. Based on interview with spraying personnel and document’s review in PRE and SSE, there is no pregnant or lactating spraying officer.


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

The company has had the policy over the occupational health and safety (KE) program, which stated in the sustainable plantation management guidelines No. Policy 724/TQEM-SPMS/09 on 27/8/2010. The company has periodically delivered the report of guiding committee of occupational health and safety activity to related institutions every 3 months, company able to shows the receipt of report delivery, for instance the guiding committee of occupation health and safety (P2K3)three-months reportnumber 4 on 4thJan 2014, the delivered report consist of P2K3 report, organogram, recapitulation report over work incident, recommendation from P2K3, chemical work environment, cleaning and illuminating assessment report, safety tools evaluation report and minute of P2K3 meeting. The company has conducted the identification toward people in charge on the occupational health and safety (K3) field.There is a propose letter for latest P2K3organogram to manpower and transmigration department of Kota Baru. The company shows the request letter to change the structure of P2K3 through letter No. 250/LMR-Disnakertrans/III/2014/S on 3rd March 2014 with a secretaryon behalf of Mr. Benhard Manurung, K3 expert certificate for


ASSESSMENT REPORT


P2K3 secretary is available with a registration No Reg. 6197/PK3/AJ/31/2013/PO on 4th July 2013. P2K3 has a monthly periodicmeeting and the company shows the minutes of P2K3 periodic meeting, for instance meeting on 10th Dec 2013. The hyperkes certified paramedic is available and in charge in treatment room, for instance Ms. Surianti AMD. Keb, Certificate No. 15.698/PM-XV/13. Company has registered its employee in social insurance program (Jamsostek), company presents the payment receipt of jamsostek monthly contribution, for instance: payment receipt for jamsostek monthly BBF for SKU personnel (daily and monthly) for about 122 personnel and PKWT for 4 personnel, which paid through Bank Mandiri on 5th February 2013 Voucher ref No: 003/BBF/II/2014 and bilyet no GFK958599. Based on field visit, its known that the entire personnel have been registered in jamsostek program. There is a periodic medical examination program for personnel. The examination is conducted every 6 months, where personnel is divided into 12 groups and get their medical examination schedule, for instance: medical examination for spraying officer in December 2013, boiler operator and mechanic inMay 2013. The company presents the result of periodic medial examination; the medical examination was conducted in collaboration with prodia clinic and mandiri healthy care clinic. A number of personnel that have been examined forestate (BBE dan SCE) are 31 personneland millare 7 personnel. Based on medical examination toward mill’s personnel, there are 5 personnel that were required further examination or need to have a consultation with company’s physician, such as: Mr. Hasnadi (has a obstructive and hearing impairement), but the company not able to presents the evaluation evidence or further action to be effectively implemented. The examination by the prodia clinic has been conducted in December 2013 for 2 personnel and the examination result is normal. Non-compliance CAR No. 2014.03 with minor nonconformity. The company has conducted socialization to each and every personnel regarding their periodic medical examination. HIRAC or hazard identification risk assessment and control has been implemented for every estates and mills. HIRAC document explains every steps of activity or identified hazard activity, hazard risk, risk type, risk control and person in charge regarding the risk control. Based on field visit its known that the entire activities have been analyzed and identified as well as implemented in the field and are in line with the recommendation stated in risk analysis report. The company has conducted the socialization by stick the report in the information board in each stations and warehouses. Trainings related to occupational heath and safety (K3) have been implemented in mill and estate, the company presents the report of trainings implementation, such as:

- PT LMR P3K training, which conducted with a collaboration with social, manpower and transmigration agency and hyperkes agency in kotabaru on 17-20 July 2013 with a number of participant are 44 people (paramedic, field officer, foreman and teacher), minutes of training and attendance sheet are available.

- Certificate for BBE and SCE operators available as an evidence that the operators have received the K3 training, for instance: certificate on behalf ofMr. Sarifudin No Reg 25386-OPK3-PAA/VIII/2013 as an operator for K3 tractor, certificate on behalf ofMr. Samin No Reg 25362-OPK3-PAA/VIII/2013 as an operator for K3 Compactor, certificate issued by manpower and transmigration ministry of republic of Indonesia on 30thAugust 2013.

Company able to presents the emergency response SOP with a document number 062/LMR-TPD-E9 on 1st Dec 2010, which explains the steps, such as preventive steps, monitoring and emergency response. Company has fulfilled the first aid kits in work site and able to present first aid kits’ hand over note, for instance hand over on 15th Jan 2013 for Bebunga Factory, BBE capital office, SCE capital office and BBE division office and SCE division office, which handed to company’s physician. Content of the first aid box are in accordance with the applicable regulation. There is also a report on PPE (personal protective equipment) hand over, for instance: PPE hand over note on 2ndAugust 2013 for glasses, mask,earplugand glove to 19 personnel in workshop division. Based on field visit, the audit team found in-consistence on the implementation of first aid, for instance in Mill, personnel un-wearing the PPE when they are working, like welder not wearing the apron, generator operator not wearing the ear muff/ ear plug. Non-compliance CAR No. 2014.04 with minor nonconformity Company shows the minutes of P3K training, which conducted in collaboration with social, manpower and transmigration agency and hiperkes agency in kotabaru on 17-20 July 2013 with 44 participants (paramedic, field officer, foreman and teacher), minutes of training and attendance sheet area available. There is a list of rank for the


ASSESSMENT REPORT


participants, which attached in the annex. There is an inauguration for the P3K officer, for instance Mr. Tulasmi Dwi Saputra No: SK/PT HGU-BBE/22?I/2013 on 2ndJan 2013. Interview with P3K officer in the field showed that the officer able to explains first aid procedure in case of an accident. PT LMR has working accidents reportwhich submitted every three-months to institution along with the P2K3 report. Based on the last three-months report, its known that a number of work accident are 4 times with a number of working-hour lose are15 working days. There is a report over the work accident investigation dated 21st Dec 2013 on behalf of Mr. Andeanus Leo;the report explains the chronology of the accident, cause and the explanation of accident type. The company presents the report of work accident stage I (KK2 form) on 25th December 2013, which reported within 2x24 hours to PT Jamsostek as a work accident on behalf ofMr. Andreanus Loe. The P2K3 team has discussed the work accident in the P2K3meeting; P2K3 gave a recommendation to increase the number of socialization about K3, PPE application and increase the supervision by foreman and supervisor.


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

There is amatrix and training program for PT LMR,period 2013/2014. Type of programmed training is the socialization of palm oil, harvesting management, block manuring systems, block spraying system, canopy management, plantation, pest and disease, KKPA management, Workshop and maintenance, occupationalhealth and safety. The realization of this training is planned in 2013-2014. The company collects and maintains every training record for personnel, company presents the documents such as minute of workshop on fire-caterpillar control on 9-10 Jan 2013, the training was about fire-caterpillar handling, harvesting, rainfall and fertilizer’s sample. The training also completed with field practice, photos and attendance sheet area available, number of participants were 58 people. There is an SOP for Tender No Policy 312/PUR on 1stMay 2012, this procedure explains the steps of selecting the contactor through tender process, the tender was conducted in Minamas capital office. Company has established a tender committee who will execute the contractor selection process. SOP also explains the required specification for every bidders, for instancefor material/service will require technical specification, the user should responsible to provide the required documents and make a recommendation. The company shows one of the SPK (working agreement) with the contractor Number SPK BBE/SPK-LKL/VIII/2013-2014/023 regarding the rent for construction service and body repair fabrication, dated 27th August 2013. The requirements and procedure for the contractor is available in the annexes, one of them is stated in the manpower and environment regulation.


PRINCIPLE #5 Environmental responsibility and conservation of natural resources and biodiversity

5.1 Aspects of plantation and mill management, including replanting, that have environmental impacts are identified, and plans to negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continuous improvement.

PT LMR has environment documents, which consist of:

Environment impact analysis (ANDAL) for palm oil plantation and mill (collective) on behalf of PT. Langgeng Muara Makmur, which endorsed by head of planning, secretary commission, agriculture department No. 008/ANDAL/BA/II/1995 on 27th February 1995.

Environment management document (DPLH) and the issued letter from environment agency (BLH) Paser, Paser district No.: 660.1/210/DPLH/BLH2011, on 24th May 2011 regarding the recommendation over DPLH palm oil plantation activity, which covers an area of 1.213 ha that located in Batu Engau and Tanjung Harapan sub district, Paser district, Kalimantan Timur province. There are 11 aspects that should be monitored based on endorsed DPLHdocument.


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There is also a document for the identification area with a high conservation value (HCV) and social impact analysis document in 2010.

There is a report for the implementation of environment management plan (RKL) and environment monitoring plan (RPL), which conducted periodically (every 6 months), for instance the implementation of RKL and RPL period II in 2013 (July – December2013) that has been submitted with a cover letter No. 009/BBE-BLHD/II/2014 and accepted by BLHD Kalimantan Selatan province (marked) on 17thFebruary 2014. The implementation of RKL and RPL contain the entire aspect that stated in the AMDAL document as well as contain the ongoing replanting activityin Sungai Cengal Estate and Bakau Estate. Based on environment impact analysisdocument’s review (ANDAL, RKL and RPL) and the implementation of RKL and RPL report for period II in 2013, there is no difference on the operational activity and scope, so there is no need to make a revision over the RKL and RPL documents.


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

Protective, rare and endangered wildlife identification report is available, as well as the habitat with a high conservation value in PT. Langgeng Muaramakmur area. The identification was carried out by YASBI foundation (Yayasan Kelapa Sawit Berkelanjutan Indonesia). Protective, rare and endangered wildlife identification as well as the habitat with a high conservation value records have been explained in the assessment result during the ST1 stage. Based on HCV analysis in PT. LMR area, there are some area, which categorized as high conservation value area, such us:

- NKT 1 : Bakau (26,84 ha), Bebunga (54,20 ha) and Sungai Cengal (236,76 ha) - NKT 2 : Sungai Cengal (222,66 ha) - NKT 3 : Bakau (26,84 ha), Bebunga (29,00) and Sungai Cengal (233,27 ha) - NKT 4 : Bebunga (51,17 ha) and Sungai Cengal (225,76 ha) - NKT 5 : Bebunga (25,20 ha) and Sungai Cengal (3,10) - NKT 6 : Sungai Cengal (3,40 ha)

The management of PT. Langgeng Muaramakmur has carried some efforts, such as: 1. The SOP is available: 1 wildlife management (No. 033/LMR-4-PSL/C7, on 01st December 2010), which endorsed by

head of SOU 2) DAS/riparian protection (No. 031/LMR-DAS/C7, on 1st December 2010 has been approved by head of SOU.

2. There is NKT/HCV monitoring document of PT. LMR in Bebunga Estate, Sungai Cengal Estate and Bakau Estate area. In the document is stated type of activity related to NKT management, which completed with a timeline.

3. Activity to protect species and NKT has been conducted, such as set the area and isntallation of name board in accordance with type of existing NKT and there are evidences for instance attendance sheet, photos, copy of the material that strongly prove that the company has implemented the socialization activity related to rare or endangered wildlife or the habitat with a high conservation value to personnel as well as surrounding community.

There is also a report for the follow-up programon enriching the danger and protective plantation such as Ulin, Gaharuand other type of plantations in riparian area and other places. Based on field visit to Mulyoharjo village, Lintang Jaya, Segendang, and Binturung, it’s known taht surrounding community not entirely understood about the existing and managing the HCV in plantation area. Non-compliance CAR No 2014.5 with minor nonconformity The company had pointed special officer to supervise the implementation NKT management, such as:


ASSESSMENT REPORT


1. Hamid Isrohaedi with a letter No : SK/Pt.HCV-BBE/01/I/2012 2. Shendy Ismayana with a letter No : SK/Pt.HCV-SCE/IX/2013 3. Urip Prihadi with a letter No : SK/HCV-BKE/02/XI/2013

Based on attendance sheet of the HCV training (internal) on 28th September 2012, participant of the trainingwas Mr. Hamid from BBE, meanwhile the HCV officer for SCE and BKE has no evidence ever participating in HCV training (internal) Non-compliance No 2014.06 with minor nonconformity


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

PT LMRhas identified the sources of waste and pollution in mill and estate. The produced waste is classified into hazardous waste and non-hazardous waste. The hazardous waste is managed through cooperation with licensed third party mean while hazardous waste is managed by considering the health and environment aspects. The waste management is based on the identification result over the sources of waste in order to avoid pollution and has been documented, for instance:

Documentation of hazardous waste is stated in warehouse card – central, which consist of date, received from/ used for, in, out and left over. The hazardous waste is managed and stored for maximum 90 days in hazardous waste landfill, further to be delivered to licensed collector.

Documentation of liquid waste application and empty fruit bunches application area stated in the Management Committee Meeting. Liquid waste and empty fruit bunches are utilized for land application.

The Domestic Waste Management

Based on field visit to final landfill in Block H24 Bebunga Estate, its known that the un-organic and organic domestic waste have not been managed in accordance with the SOP of domestic waste management, for instance: separation between organic and un-organic waste, the un-organic waste should be burried, etc. Non Complaince CAR No. 2014.08 with mayor nonconformity Verification on 20 May 2014 Root of the problem: Lack of socialization over the mechanism/ SOP for domestic waste management to personnel. The domestic waste has not been managed in accordance with the SOP. Corrective Actions:

SOP revision regarding to domestic waste on 4th March 2014, especially in Point 5.2.1 the management in operation unit.

Waste storage in final landfill Block H24 and the establishment of new hole for waste.

Preventive Actions: Conducting periodic monitoring. CAR No. 2014.08: fulfilled PT LMR has carry out several management efforts, such as:

PT LMR has a temporary hazardous waste in BBF that based on decision letter of Kotabaru reagent (Number 188.45/125/KUM/2011 on 08th March 2011), that valid until 5 (five) years. The hazardous waste is stored for 90 days (maximum duration)in BBF hazardous waste landfill.

The hazardous waste management in each estate is based on information letter No. 660/416/BLHD, which issued by the environment agency of Kotabaru government on 19th November 2012 that explains the permit for temporary hazardous waste storage is 15 days in Bebunga Estate, Sungai Cengal Estate and Bakau Estate.

Hazardous waste hand over to licensed buyer. PT LMR had a cooperation with PT Maju Asri Jaya Utama and have had the permit letter from the ministry of environment based on ministry decision letter SK Men LH No.37 in


ASSESSMENT REPORT


2011, on21st February 2011, which valid for 5 years. PT Maju Asri Jaya Utama also has licensed vehicles that in accordance with recommendation letter from Dirjenhub which have a permit to transport specific goods/materials No. B/22/Dep.IV/LH/01/2011, on 3rd January 2011

Waste monitoring, such as:

Documentation over warehouse’s card – central in BBF (temporary hazardous waste landfill), which consist of used oil, used accumulator, bulb boxes, bulb, majun fiber, oil filter, used air cleaner and used pesticide packages.

Monitoring of effluentapplication 223,207 m3 in land application area.

Monitoring on solid waste, such as in December 2013 JJK=2.903.520 kg Solid 512.700 kg and boiler dust 73,090 kg

PT LMR also reported the waste monitoring result (B3, empty fruit bunches andeffluent) to environment agency of Kotabaru district and there is a receipt from BLHD Kotabaru. Latest report that has been sent were the RKL andRPL semester II report of periodJune - December 2013 and have been received by the BLHD Kotabaru on 17 December 2014. The company has sent the hazardous waste to licensed collector on 2nd March 2014, for instance: in temporary hazardous waste landfill(mill), but the storage is over the established shelf life (PP No.18/1999) – 180 days. Non-compliance CAR No 2014.07 with minor nonconformity

Status: Not Compliance (CAR 2014.07)

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

There is a saving data on diesel fuel usage, which replaced by fiber and shell. Period of July 2012 – June 2013 with detail as below:

Total electricity energy that has been used: 4.517.903 KWH

The total of used oil: 138,260 liters

Average Kwh/liter oil: 1.85

Total used fiber+ shell: 52,859.608 kg

Average KWH /Kg (fiber + shell): 0.08

Total saving of the oil: 2,318.148 liters PeriodJuly 2013 - January 2014

Total electricity energy that has been used: 1,905.157 KWH

The total of used oil: 108,544 liters

Average Kwh/liter oil: 1.82

Total used fiber + shell. 19.113.881 kg

Average KWH /Kg (fiber + shell): 0.09

Total saving of the oil: 936.026 liters


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.

There is a memorandum from Head of Plantation Operation NO POD-UM-044/III/2010 on 9th March 2010 regarding the replanting program in 2010-2030 based on new block, which explains the replanting program in 2010-2030 for minamas plantation. The company also has theReferenceAgronomyManual No. 110/EST-ARM/08,in which part4 land preparation in article 3.1 point (b) stated that the land clearing should be based on the decision letter from directorate of agriculture No. KB.110/SK/DJ BUN/05.95 on 30th May1995. The company has presented the work agreement No. 011/Replanting/LMR-BBE/VII/2013 dated 1st July 2013, for


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replanting tender, in the annex 1 of the agreement states type of works that carry out by the contractor are pancang activity, tumbling and chopping, digging and coverthe planting hole, establishing new trench, establishing new road, establishing terrace, establishing the planting hole by using the mechanical way, establishing the guludan and leveling of harvesting path. The entire activity carries out by the mechanical way and based on field visit in the replanting area, it’s known that there is no burning on land clearing process. The land preparation/land clearing for replanting in B025 Div. 2 BBE is available. In thememorandumof Minamas Plantation - Head office Jakarta No. POD-UM-010/I/2009 on22nd January 2009 regarding the prevention of fire and dry in estate, the company has made the map for fire-troubled area in each estates and map of water sources. Furthermore, there are monthly reports on fire monitoring, which based on the document’s verification from 2011 to 2012 thre is no single fire occur within the PT Langgeng Muara Makmur area. The SOP for fire management is available, with a document No 064/LMR-PK/E9, on 1st December 2010, which explains the reference, procedure (preparation and controlling), the responsible team, controlling as well as the administration of the reporting. The facility and infrastructure for fire control in PT Langgeng Muaramakmur such as water mechine, hoze, Water trailer, mattock, machete, Flaper, bucket/container, fire-proof clothes, boots, plastic glasses, fire-proof gloves, smoke mask, Helmet, sackand heavy equipment in the estate and fire extinguisher (APAR) as well as Hydrant in mill are available. Based on field observation, its known that the entire equipment’s area in a good condition and ready to use.


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

Identification on source of pollution and emission inthe mill and estate has been documented in the inventory procedure &Emission identification GRK (No. Policy: 700/PSQM-GRK-01/12). Source of pollution and emission from estate operation such as: the changes in land cover, fertilizer application, cultivation in peat land, the usage of oil for generator and heavy equipment, FFB transportation activity. Meanwhile the source of emission in mill such as: the usage of oil for generator, firing activity in the boiler, electricity usage, kernel separation process, throwing the liquid waste (POME) and transportation of CPO to bulking/refinery.

Monitoring on emission quality that comes from pollution source is taking place in Bebunga mill by responsible agency. The responsible agency is HIPERKES and occupational safety of Banjarbaru kalimantan Selatan

Test result on air in work place Test result on the intensity of noise

No Location Intensity (dBA)

Regulation from manpower and transmigration ministry

No.13/MEN/X/2011

Remark

1 In front of the office 55,6 85 <NAB

2 Loading ramp 74,4 85 <NAB

3 Press 88,8 85 >NAB

4 Engine room 92,1 85 >NAB

5 Boiler 86,2 85 >NAB

The analysis result in the mill shows a compliance toward environment standard, except for the noise near Boiler is above the standard threshold and need to follow up by using the mandatory usage of ear plug (in a work place). Test result in the un-waving emission sources in PT. LMR, 4th April 2012.

No Station NH3

(mg/m3) Cl2

(mg/m3) HCL (mg/m3)

HF (mg/m3)

NO2

(mg/m3) SO2

(mg/m3) Opas. (%)

Particle (mg/m3)

1 Chimney ofgenerator 1

0,01 0,01 0,01 0,02 13,58 6,7 17 34

2 Chimney of generator 2

- - - - - - - -


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3 Chimney of generator 3

0,01 0,01 0,01 0,02 13,22 00.96 15 210,98

4 Boiler Chimney No. 3

0,01 0,01 0,01 0,01 4,30 7,62 18 146,16

Guideline: Governor of Kalimantan Selatan Regulation No. 070 in 2008 regarding the standard of un-waving emission sources and emission threshold from vehicle smoke. The entire test parameters are under the standard threshold. The unit management is taking actions to reduce pollution and emission, such as:

a. Installation and operation ofDust Collectorin Boilers, which automatically installed during the development of the mill.

b. Cleaning the office both indoor and outdoor and on the entire instruments in a daily basis, for instance: Dust removing in Boiler room, cleaning the Boiler’s hose by using automatic system called Sonic Shoot Blower, which already installed in boiler hose. Meanwhile for dust cleaning below the boiler is conducted once in a 2 days Field observation: cleaning schedule are every Tuesday, Thursday and Saturday (in the morning before work activity started)

c. Monitoringand evaluation on the usage of fiber and shell as fuel sources and monitoring the usage of fossil fuel for the generators.

POME management from the Bebunga mill is using the IPAL ponds, which consist of 10 ponds, in detail: 2 Cooling Pondswith 2,400 m3/ponds capacityand 8 sediment ponds with 7,200 m3/ponds capacity per each pond. The POME sedimentation process is using the un-aerobe system and has one pumpmachine to transfer thewaste application. From the IPAL pond will be pumped to land application of liquid waste with a permit from Kotabaru Reagent No 188.45/446/KUM/21 regarding the permit to utilize the liquid waste for PT Langgeng Muara Makmur land. The soil’s water quality monitoring is conducted by examining the quality of well’s water by Baristan (Research center and industry standardization) Banjarbaru that is reported every 3 (three) months to the BLHD of kotabaru.


PRINCIPLE #6 Responsible consideration of employees and of individuals and communities affected by growers and mills

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

The company has conducted the analysis on positive and negative impact from the plantation activity toward surrounding community through:

1) Environment impact analysis (AMDAL) for PT Langgeng Muara Makmur (LMR) that endorsed by the agriculture agency on 27th February 1995. This document states several positive and negative impacts toward social environment that is managed and monitored by the company.

2) Social Impact Assessment Report that carried out by the company with collaboration with third party in 2010 has several recommendations for the social impact management.

Both documents have an evidence of the implementation of participatory Social Impact Assessment by involving local community in plantation area and other stakeholders.

Document’s verification shows that the company has had the record on the environment management and monitoring, which was periodically drafted and reportedas presented in the RKL-RPL document for semester 1 and 2 in 2013. In general, the RKL-RPL document for second semester in 2013 thas expalins the social impact management and monitoring, nevertheless te evidance that this activity was carried out in a participatory ways by involving local


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community and other stakeholders is limited. To reduce community’s worries such as a rumor that there will be no plasma scheme, the rumor that company will owned the plantation after the replanting activity in Binturung village, rumor about social contribution in Lintang Jaya and Mulyoharjo village. Noncompliance CAR No 2014.10 with minor nonconformity. As a part of fulfilling the standard indicator 6.1.2.The company needs to presents evidences that the social impact has been managed and monitored in a participatory way that in accordance with the AMDAL document.

Based on specific verification over plantation and industry during audit S2, it’s known that there is no significant change in the AMDAL document. Furthermore, there is no need to revise the RKL and RPL document.

Environment management and monitoringreport is periodically submitted to relevant agency. There is a copy of the RKL/RPL implementation report, semester 1 and 2 in 2013 andreceipt note of its delivery to relevant agency as the evidences. Report for period semester 2 in 2013 is in drafting process. Further explanation can be seen in indicator 5.1.2.

As a part of community empowerment commitment, the company has established the plasma scheme in Binturung village, Segendang andSakadoyan village that include in the special management of KKPA Sungai Cengal. In general, the entire plasma smallholders from Binturung village are 260 households, Segendang village is160households and Sakadoyan village is 120households. The development realization report over plasma scheme in KKPA – ASC (Sungai Cengal) with a progress of the development until 25th February 2014 are:

1. Plasma scheme in Binturung village is 383,56 hectarethat has been developed in 2006 – 2008.

2. Plasma scheme in Segendang village has not developed and still under the preparation stage.

3. Plasma scheme in Sakadoyan village is + 150 hektar.

During the audit process, PT. LMR is conducting the HCV analysis and As part Social Impact Assessment (SIA) in entire area of KKPA Sungai Cengal with a collaboration with Bogor Agriculture Institute (IPB) to identify the environment and social aspect from the KKPA Sungai Cengal. This activity is part of PT. LMR awareness toward plasma scheme.


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.

There is an SOP for community complaint management; document no 053/LMR-PKM/C11 on 01st December 2010. Below is the procedure for handling cummnity’s complaint:

1. The entire coming letters or complain/suggestion/aspiration will go to unit operation and are addressed to the manager of unit operation.

2. The entire letters or complain/suggestion/aspiration will be documented in community aspiration book and store in capital office

3. complaints/ aspirations will be reviewed and be responded as well as be followed up by the unit operation manager.

4. In case it requires an approval from head departemen or another depatment, it will be reported in written. 5. Tehe entire answer over the community’s complaints/ aspirations should be signed by the unit operation

manager. 6. Answers for the complaints/ aspirations have had an approval from head departemen within 2 weeks (14 days)

notice. List of stakeholders is stated in a matrix that contains some information like name and address of the stakeholderfor village and sub district, district, province level. The registered names of stakeholders include the community’s leader, local government from village up to ptovincial level, related agencies and CSO. The company has the community’s inspiration record, which stakeholder log book, for instance: Bebunga Estate

Letter from head of Lintang Jaya village, number II.16/03/KD-LTJ/2013 regarding the request for village road improvement (8th February 2013) that has been responded by the manager of Bebunga estate with a letter number 248/BBE-ltg/II/2013/S by lending heavy equipment (grader) and compactor (9th February 2013).


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Bebunga Mill

Letter from head of Mulyoharjo village, number 03/I/KD-MHJ/2014 regarding the musrenbang invitation (meeting for village planning and development) for budget period 2015 in Mulyoharjo village hall (7th January 2014).

Letter from The Universitas of Lambung Mangkurat – Technical Faculty, number 033/UN8.131.6/SP/2014 regarding the requets for internship (KP) (29th January 2014).

Sungai Cengal Estate

Letter from head of Tamiang village, number 061/KD-TMG/2013 regarding the request for TLB tools to clean the location for student dormitory of Madrasyah in Tamiang village (31st May 2013). The company has given support to Tamiang village onsunday, 9th June 2013 witha letter number 04/SCE-psd./VI/2013/S (3rdJune 2013).

Special officer who incharge for cummunity consultation is Mr. Sriyatno for Pamukan area (PT PSA and PT LMR). Based on interview with Mr. Sriyatno, its known that head of administration is understand his responsibility to conduct the consultation and communication with the community.


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

The SOP for identification and compensation standard over the land (001/PSD-L&AS) on 3rd June 2011 is available and covers information about the stage of compensation and the calculation, which is in accordance with a standard from Kota Baru district government.


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.

Consisten with theprevious audit S1 result, The SOP for identification and compensation standard over the land (001/PSD-L&AS) on 3rd June 2011 is available and covers an information about the stage of compensation and the calculation which is in accordance with a standard from Kota Baru district government.

Company presents the document of identification record for parties who received the compensation for the land clearing of HGU, such as: 1) minutes of the assessment of committee “B” in HGU, which indicates compensation for community’s land that located inside the area for the HGU; AND 2) Minutes of compensation meeting, which explains compensated parties as well as the amount of the compensation.

Consistent with previous audit, company is able to present the evidence of the negotiation for land clearing in a form of minutes of the compensation meeting to discuss the calculation of compensation in village level. For private land, there is a record of land compensation that has been approved by both parties and was witnessed by community leader, head of neighborhood and head of village.

Confirmation with local community in the plantation area (Segendang, Binturung, Mulyoharjo, and Lintang Jaya village) shows that the company has conducted the socialization and negotiation with the landowner to discuss the land acquisition with collaboration with village administrator. The company not insisted the landowner who didn’t want to sale their land.

Land compensation for HGU of PT. LMR has been done and for some conflicted areas in Segendangare still ongoing processes. The remaining disputes over the land compensation with some community in Segendang village are under settlement with a significant progress like explaines in indicator 2.2.3.


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The document of land compensation for the HGU area are available in a form of land letter, which signed by land owner and known by related head of village, id card of the owner, invoice of land compensation, as well as photos of land hand over.


6.5 Pay and conditions for employees and for employees of contractors always meet at least legal or industry minimum standards and are sufficient to provide decent living wages.

The company sets sectoral minimum wage for Kalimantan Selatan in 2014, which based on the decision letter from Kalimantan Selatan governor, No. 188.44/0595/KUM/2013 amountIdr 1.675.000, -. this decision letter starts to be implemented on 1st January 2014 until 31st December 2014. Company has a collective work agreement (PKB) for period 2012-2014, which approved by the ministry of manpower and transmigration of Republic of indonesia, Directorate general of Pembinaan Hubungan Industrial dan Jaminan Sosial Tenaga Kerjawith a letter No: B.98/PHIJSK-PKKAD/PP&PKB/VI/2012 (on 19th June 2012). Company provides facilities for personnel and documented in housing inventory document, building, facilitied and infrastructure, which contain the dormitory group and housing matrix as well as the type (public dormitory, Pamukan Resort, management dormitory, Club House, GM house, Manager house, Askep house, Asistent/head of section/KTU house, G1 house, G2 house, G3 house); public type building (GM office, capital office, Division office, warehouse, workshop, meeting room, school building: kindergarten, basic shool, junior high school, senior high school, SMK, junior high schooldormitory, polyclinic, library, laboratory, employee hall, mosque, child care, church, food store, security post, sports building, swimming pool, soccer field, badminton field, volley ball field. Based on field visit, these location are well maintained and the sanitation is well maintained. In the work agreement, the company requires the contractor to comply the applicable manpower regulation, for instance in mutual work agreement with PT. Catur Manunggal Jaya Abadi with the mutual work agreement No SPK 008/Replanting/LMR-SCE/VI/2012 with a Replanting, activity in article 12 regaridng the secury, safety, occupational healt and environment, in point 7, its states that the secodn party (contractor) is mandatory to comply the entire regulations such as law, governemnt regulation, company’s regulation etc especially which has a relation with occupational health and safety as well as environment when perform their duties. Based on feld observation and interview with workers note that the company has to pay the wages of employees always meet at least legal or industry minimum standards.


6.6 The employer respects the right of all personnel to form and join trade unions of their choice and to bargain collectively. Where the right to freedom of association and collective bargaining are restricted under law, the employer facilitates parallel means of independent and free association and bargaining for all such personnel.

The policy to give freedom for personnel to join a union is stated in mutual work agreement, article 8 point 1 regarding the acknowledgement of worker union by the company and that the worker union is a legal representative for the entire personnel and has a parralel position with the company as a partner. In chapter II article 6 point 2 regarding company’s responsibility toward worker union, mentions that the board and member of worker union have an opportunity to perform its work in accordance with mutual agreement from both party and or in accordance with the applicable regulation. The worker union has been recorded to social, manpower and transmigration agency with a BBE No. 560.568/24/Naker on 21st Feb 2013, SP record BBF No 560.568/32/manpower and transmigration agency of Kotabaru, andSCE No 568/52/manpower and transmigration agency to social agency on 2nd Feb 2012. Periodic meeting between the company and worker union is conducted when there is a need to discuss manpower issue. Company able to present the meeting report, for instance: meeting between company and worker union on 16th November 2012 regaridng the discussion over duties and responsibilities of the worker union, discussion over the PPH deduction, discussion over generator issue in Pondok II (attendance sheet, documentation/photos and minutes of the meeting area available).


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

The company has a policy that requires minimum age for personnel; the Memorandum Head Office- Jakarta (No. POD-UM-052/III/2010), which states the restriction to hire under-age personnel (under 18 years old) that in accordance with the manpower law. This policy also stated in mutual work agreement article 16 regarding the recruitment Point 1.2.2, which states that the minimum age for hiring personel is at least 18 years old. Based on personnel data inFebruary 2014 in Bebunga mill, Bebunga estate, Sungai Cengal estate, the youngest staff is 20 years old, namedMr. Ade Javas Virgiawan, date of birth 03rd August 1994. Dring the field visit and interview with fertilizer officer in division 2 Block J07 (SCE) there is no personnel under 18 years old, the youngest staff is 20 years old. Based on field observation and interview with workers, there is no children exploitation practices.


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

The company has anSOP for sustainable plantation management, which issued by Minamas Plantation Indonesia (No. Policy: 724/TQEM-SPMS/09)page 13, on 27th August 2010, covers company’s policy on opportunity and fair treatment on work point 1 that explains: the entire personnel/ staff should be fairly and normal treated regarding the recruitment process, promotion, work condition and description, no discrimination againts race, social status, sthnicity, sex, skin color, disability, sexual orientation, organizational membership, political view, religion anf age. Mutual work agreement is available, article 16 explains the recruitment of personnel, such as:

1. Personnel selection: conducted by the company in accordance with the qualification for the applied position.

2. General Requirements: indonesian nationality, minimum age is 18 years old during the hiring or have been married, fit to work both physically and mentally, has a required requirement, has no relation with illegal company, not under trial, has no work agreeemnt with another party, willing to be placed in any places.

Probation period is 3 months, the performance evaluation will be conducted during the probation period. Based on personnel data in February 2014 (Checkroll), shows that personnel bacgroud is varied like from different ethnicity, religion and origin. Based on feld observation and interview with workers, there is no any form of discrimination based on race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliation or age is prohibited.


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

Company presents the policy to establish gender comission through Gender Policy, which signed byExecutive Vice President (April 2008). The objective of this policy is to guarantee the rights, prevent sexual harrasment and violation againt women, personnel and group. In addition, there is also a geder policy guideline No. Policy 701/TQEM-ESH/10 byMinamas plantation on 27thAugust 2010 in social policy for the entire personnel/ staff that should be fulfilled in a normal and fair in regards to recruitment, promotion, work description and condition, no discrimination againts race, social status, sthnicity, sex, skin color, disability, sexual orientation, organizational membership, political view, religion anf age. Company has had the gender committe organigram, suhc as:

1. Chairman of gender committee: Didiyanti (decision letter for hiring No.001/BPH.KG/SCE/2014 2. Secretary : Resti M (SK Pengangkatan No. 001/BPH.KG/SCE/2014) 3. Treasury : Blandina (SK pengangkatan No. 001/BPH.KG/SCE/2014) 4. Children and mother health care division: Dwi Hastuti


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5. Domestic violance division: Sumarsih and Etik Utami 6. Sport division: Astuti and Yuyun 7. Art division: Evi and Erni 8. Religy division : Sugianti, Muyati, and Ratna.

There is a program of gender committe on 08thMarch 2013 at 15.00-18.00 WITA with a resource person from medical team of Puskesmas Bakau sub district, physician from Pamukan area, EM Bebunga and staf PSQM PT LMR and attended by personnel and female staffs, completed with attendance sheet and photos. Below are the list of materi:

1. Socialization regarding the gender committee and its organigram. 2. Mother and children health as well as healthy lifestyle socialization

Special procedure for complaint management is stated in Minamas Plantation SOP of gender policy guideline (No. Policy 700/PD-KG/10) that explains the report or victim should fill the complaint form and membership of the gender committee, the member of gender committee who receives the compalint will deliver the complaint to gender committee chairman and related unit manager. Gender committee chairman will point internal invetigation team, this team will work within 2 daysafter received the complaint, the investigation report will be sent to manager. The report should containt a topic such as detail information of the case, background and chronology, fact finding, if the evidance is objective and sufficient, the unit manager will take a diciplinary action. Based on interview with fertilizer foreman and staff in division 2 Block J07 SCE, personnel have known about the complaint procedure especially for gender related complain that should be reported to gender committee (Ms. Didiyanti). Company’s policy regarding reproduction right is stated in mutual work agreement article 33 point 34, such as pregnancy leave for 1,5 months before labor and 1,5 months after labor and the staff still receive her full right over salary and has a right to rest for 1,5 months after miscarriage, which should be supported with a physician or midwive’s letter. Based on interview with fertilizer staff in division 2 Block J7 SCE, personnel understand the reproduction rights. H1 for 2 daysevery month, the staff should report to the poliklinik, follow by examination by midwive/nurse and fill the H1 formulir. The evidance of implementation over reproduction right protection. For instance: pregnancy letter (H2) number 022/poly-sentral/XII/2013/SKH on behalf of Fidayah, staff of bebunga estate is reccomended to take H2 leave from 3rd January 2014 to 1st April 2014.


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

PT Langgeng Muaramakur (LMR) has work agreement with Bina Swadaya Karya (BSK) cooperative to build and manage the palm oil plantation with a partnership nucleolus scheme - Plasma or KKPA Sungai Cengal with PT LMR. The agreement is made on 11th August 2008 (No 001/PK-LMR/X/2008)and valid until 25 years old or 30 years old. Community that involves in BSK cooperative and further will be managed by nucleolus plantation or KKPA in Binturung Estates owns the land. Board of KKPA-nucleus, Plasma is about 1,750 ha in Kota Baru area, Kalimantan Selatan province and has been cultivated since 2008 and some of the area can be harvested for about 96 ha and the FFB will be delivered to mill. In the agreement, both party agreed to manage the palm oil plantation in accordance to the right and responsibility of each party The agreement regulates that the entire production of cooperative member will accept and buy LMR with an appropriate price that based on government regulation that has been agreed by both parties.

Board of KKPA Inti-Plasma Sungai Cengal that managed by nucleusable to present the agreed price, which based on regulation from plantation agency, Kalimantan Selatan province with an agreement mechanism and known by other parties. The minutes of meeting to set the FFB price among KKPA smallholders, independent smallholdersand other parties including local plantation agency is available. For instance: FFB price in September 2013 amount Idr. 1,060


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(planting age is 3 years old) and Idr, 1,448 (planting age is 13 years old) Based on agreement between Bina Swadaya Karya (BSK) cooperative with KKPA Sungai Cengal as leading management (nucleus), there is a mechanism where the KKPA is mandatory to report the realization of palm oil plantation development every semester; and the payment over the production by both parties is regulated by decision letter from plantation director general No. 29/KB.03/SK/DJ-BUN/04/93 on 7th April 1993 regarding the technical guidelines to set the extraction (rendemen)and production quality as well as the procedure for trade and payment. The agreement also regulates that the production should sale to member everydate 3rd (three) of the next month after deducted with debt and its interest, maintenance cost including harvesting, transportation and in-direct cost. Interview with KKPA Sungai Cengal explains that the management over plasma scheme plantation is consist of production activity (sale) and production cost and KKPA debt cost. Forthis moment, KKPA Sungai Cengalhas no payment over palm oil production that directly paid to member, because the production cost is higher that the sale income, but the FFB price for processing in mill will be recorded and be calculated and be reported to member.


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

Company has documentation over its contribution toward local development, such as: 1. Company’s involvement in a process of musrenbang (village Musrenbang) andsub disrict Musrenbang. Attendance

sheet and minutes of meeting in Mulyoharjo and Lintang jaya village in January 2014 are the evidance of company’s involvement. Result of the Musrenbang in 2014 are list of village development in 2015 and company’s contribution plan toward village development.

2. Record over plasma scheme development for local community in Binturung, Segendang, and Sakadoyan village. 3. CSR program in a form of facilities and infrastructure contribution, like road maintenance and improvement through

lending heavy equipment, contribution on establishing school building (SMP & SMK) inBebunga Estate, contribution for religious facilities, etc.

4. Documentation for CSR contribution like meat grant for idul adha, monthly support amount Idr. 600,000, - for village operation cost, rice grant for widowers and old people in each village, grant to support religious celebration and social celebration, etc.

5. Hiring local people to work in plantation especially in Sesulung village. Most of people in Sesulung village are working for the company.

6. Record over tax payment to government for PBB tax, income tax (PPh), PPN taxand other cost that set by the government.


PRINCIPLE #7 Responsible development of new plantings

7.1 A comprehensive and participatory independent social and environmental assessment is undertaken prior to establishing new plantings or operations, or expanding existing ones, and the results incorporated into planning, management and operations.

Company has conducted the environment impact assessment, which approved by head of planning bureau secretary of,general commission, agriculture department No. 008/ANDAL/BA/II/1995 on 27th February 1995. Document of environment management (DPLH) and the issued letter from environment agency (BLH) Paser, Paser district No. 660.1/210/DPLH/BLH2011, on 24th May 2011 regarding the recommendation over DPLH of palm oilplantation that covers an area of 1.213 ha, which located in Batu Engau and Tanjung Harapan sub district, Paser district, Kalimantan Timur province. There is a document of the implementation of RKL and RPL for period II in 2013 (July 2013 – December 2013) and periodthree-months IV in 2013 (October - December 2013). The hand over note over the document of the implementation of RKL and RPL, for instance: Periodthree-months IV in 2013 with a cover letter No. 09/BBF-BLHD/II/2014 on 17th February 2014 and is accepted by BLHD Kotabaru district on 24th February 2014. As part of company’s commitment toward community development, the company has develop a plasma scheme


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plantation in Binturung, Segendang andSakadoyan village, which include in special management for KKPA Sungai Cengal. In general, the number of smallholders includes in the plasma scheme in Binturung village is 260 households, Segendang village is 160households and inSakadoyan village is 120households. The development realization report over plasma scheme in KKPA – ASC (Sungai Cengal) with a progress of the development until 25th February 2014 are: Plasma scheme in Binturung village is 383,56 hectare that has been developed in 2006 – 2008.

Plasma scheme in Segendang village has not developed and still under the preparation stage.

Plasma scheme in Sakadoyan village is + 150 hektar.


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.

Reference on semi-detailed soil Survey of PT LMR for every estates, which issued by the Minamas research department in 2008 explains that the land with a sloping area that more than 15% or hilly up to mountain is recommended to undertake the management by establishing the terrace ring, U shape front staking and silt pit. For narrow or slope area (0-3%) is recommended to apply the water management or the installation of water gate in order to manage the level of surface water to prevent the land from sunken as well as to maintain soil fertility, for instance: observation during the field visit such as water gate in block C-48 (SCE) and in Block C-64 Div IV (SCE).


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.

Protective, rare and endangered wildlife identification report is available, as well as the habitat with a high conservation value in PT. Langgeng Muaramakmur area. The identification was carried out by YASBI foundation (Yayasan Kelapa Sawit Berkelanjutan Indonesia). Based on field observation and interview over the replanting activity in Block C 18-20 in 2013/2014 in Sungai Cengal Estates that side by side with water source HCV 4, explains that the replanting activity is considering the high conservation value area (HCV) for instance: riparian area, water source or other sites, which being identified as an HCV area. Replanting also consider the HCV buffer area to keep this area as a part of protected HCV area.


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

The LMR explains that using the visual method such as the observation on the leaf’s appearance carried out the marginal and less fertile soil identification; furthermore, the company has conducted the annual leaf analysis related to soil fertility indicator and recommendation for fertilization. Reference on semi-detailed soil Survey of PT LMR for every estates, which issued by the Minamas research department in 2008 explains that the land with a sloping area that more than 15% or hilly up to mountain is recommended to undertake the management by establishing the terrace ring, U shape front staking and silt pit. Based on interview with personnel from each estates, it’s known that land management, which related to land degradation and erosion for silt pit installation and water management already exist, nevertheless this activity was carry out by the maintaining method. For the empty fruit bunch application, midrib, Neprolephis cultivation, establishing the terrace ring and tapak kuda are continue to be installed and to be maintained.



ASSESSMENT REPORT


7.5 No new plantings are established on local peoples’ land without their free, prior and informed consent, dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions.

Social Impact Assessment Report that carried out by the company with a collaboration with third party in 2010 states aboutseveral positive impacts during the plantation development by PT. Langgeng Muara Makmur. That report has evidences that the social impact assessment was carried out in a participatory way by involving local community surround the plantation area and other stakeholders.

Based on document’s review and field visit, the replanting area is inside the HGU area that owned by PT LMR. Consistent with previous audit, there are evidences of the negotiation for land clearing in a form of minutes of the compensation meeting to discuss the calculation of compensation in village level.


7.6 Local people are compensated for any agreed land acquisitions and relinquishment of rights, subject to their free, prior and informed consent and negotiated agreements.

Land compensation for HGU of PT. LMR has been done and for some conflicted areas in Segendang is still ongoing process. The remaining disputes over the land compensation with some community in Segendang village are under settlement Company presents the document of identification record for parties who received the compensation for the land clearing of requested HGU:

- Minutes of the assessment of committee “B” in HGU, which indicates compensation for community’s land that located inside the area for the requested HGU

- Minutes of compensation meeting, which explains compensated parties as well as the amount of the compensation.

The document of land compensation for smallholders inside the HGU area are available as presents in compensation documents, which consist of: land letter, which signed by land owner and known by related head of village, id card of the owner, invoice of land compensation, as well as photos of land hand over.

Local community in the planation area is given the opportunity to work with company in accordance with their skills (maintenance, harvesting & office work). Based on document’s review and field visit, its known that the replanting area is inside the HGU area that owned by PT LMR.

Based on document’s review and field visit, its known that the replanting area is inside the HGU area that owned by PT LMR.


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.

Company was not undertaken burning activity during the replanting process. Company presents the Head Plantation Operation memorandum No POD-UM-044/III/2010 on 9th March 2010 regarding the replanting program 2010-2030 based on new block, which explains the replanting program 2010-2030 for minamas plantation. The company has had agroculture manual reference No. 110/EST-ARM/08,part 4 land preparationarticle 3.1 point (b) states that land clearing should comply the decision letter from directorate general of agricultural No. KB.110/SK/DJ BUN/05.95 on 30th May1995. The company has presented the work agreement No. 011/Replanting/LMR-BBE/VII/2013 dated 1st July 2013, for replanting tender, annex 1 of the mutual work agreement states type of works that carry out by the contractor are


ASSESSMENT REPORT


pancang activity, tumbling and chopping, digging and cover the planting hole, establishing new trench, establishing new road, establishing terrace, establishing the planting hole by using the mechanical way, establishing the guludan and leveling of harvesting path. The entire activity carries out by the mechanical way and based on field visit in the replanting area, it’s known that there is no burning on land clearing process.

Fire extinguisher management No 064/LMR-PK/E9, on 1st December 2010 is available. This document explains the reference, procedure (preparation and control), responsible team, controlling as well as administration of the reporting.

The facility and infrastructure for fire control in PT Langgeng Muaramakmur such as water mechine, hoze, Water trailer, mattock, machete, Flaper, bucket/container, fire-proof clothes, boots, plastic glasses, fire-proof gloves, smoke mask, Helmet, sack and heavy equipment are available. Based on field observation, its known that the entire equipment’s are in a good condition and ready to use.


PRINCIPLE #8 Commitment to continuous improvement in key areas of activity

8.1 Growers and millers regularly monitor and review their activities and develop and implement action plans that allow demonstrable continuous improvement in key operations.

The company has carried out the annual internal audit to ensure the consistence over the RSPO standard in mill and estate operation (in term of sustainable improvement). The company also presents the improvement on company internal audit’s findings.



ASSESSMENT REPORT


3.2. Summary of Assessment Report of Supply Chain

Clausal (Module E) CPO Mills - Mass Balance Requirements

1 Documented Procedures

1.1

The facility shall have written procedures and/or work instructions to ensure the implementation of all the elements specified in these requirements. This shall include at minimum the following:

a) Complete and up to date procedures covering the implementation of all the elements in these requirements.

b) The name of the person having overall responsibility for and authority over the implementation of these requirements and compliance with all applicable requirements. This person shall be able to demonstrate awareness of the facilities procedures for the implementation of this standard.

Interview withMr. Lomo Sarigih (Mill’s assistant PKS) and Mr. Murjani (Mill’s manager).

Mill explains that the implementation over supply chainmodel is not segregation but Mass Balance and only present s the SOP that related to SCCS No. Policy: RSPO/501/SCCS/LMR, Rev. 01, on 1st November 2012 and refers to SCCS RSPO Supply Chain Certification Standard, Final Document in November 25th, 2011, and Mass Balance standard. The procedure regulates the raw material identification, mill’s product identification (such as CPO, Palm Kernel, Fiberand shell), product traceability for every stages up to CPO and CPO dispatch to bulking station as well as CPO delivery to buyer.

Furthermore, the responsible parties in part 5 SOP SCCS are Factory Manager, PSQM assistant, foreman/laboratory assistant, As/ Sr. As/ Bulking manager with duties and responsibility related to SCCS requirements.

Status : Compliance

1.2

The facility shall have documented procedures for receiving and processing certified and non-certified FFBs.

Procedure 6.1.Regulates the raw material and product identification, which consist of:

1. Raw material identification (fruit delivery note and fruit assessment in the mill)

2. Mill’s product identification, covers (shell, fiber, palm kernel and CPO)

Furthermore the traceability of product is regulated in a documented procedure. Product traceability such as CPO and Palm Kernel traceability from fruit acceptance in mill; consist of several stages like sterilizer process, press and cyclone station, nut station, clarification station, CPO transportation from mill to Bulking Station. Bulking Station in Sekumbang village, Bakau sub district, Pamukan Utara district, Kalimantan Selatan province and Palm Kernel delivery to Bulking station inSungai Durian village, S Durian Kota Baru district, Kalimantan Selatan province), CPO storage especially LMR has 2 (two) containers in Bulking station and CPO dispatch to buyer.

Mill present some evidences and samples related to certified and non-certified FFB receiving and processing, such as:

- FFB receipt note (SPB), is marked with BERSERTIFIKAT RSPO and NON SERTIFIKAT RSPO stamp, for instance: on 27th February 2014 from BBE for amount 5,070 Kg (Certified FFB) and KKPA Sungai Cengal (non-certified FFB) amount 4,160 kg

- Daily production report, start from receiving fruit up to become CPO, for instance: on 28th Feb 2014 certifiedFFB was 11,068,100 kgand non-certified FFB was 12,560 kg,for produced CPO was 2,735,279 kg.

Monthly summary report of Sustainable FFB, CPO and Kernel report or documentation are prepared in monthlybasis and can be summarized every three-months.

Status: Compliance

2 Purchasing and goods in

2.1

The facility shall verify and document the volumes of certified and non-certified FFBs received.


ASSESSMENT REPORT


LMR start from 1st July 2013 to Feb 2014 is accepting nut from the certified fruit amount 104,690 Tones and fruit from non-nucleus or plasma plantation (KKPA or non-certified) amount 2,372 Tones. Both FFB are accepted but separated by using the BERSERTIFIKAT RSPO and NON BERSERTIFIKAT stamp in record form of weight card and fruit delivery note. Verification is undertaken and separated from fruit origin such, as nucleus is known from BBE, SCE and BKE; and FFB from non-nucleus is non-certified. This FFB origin can be identified infruit delivery note as well as in the production daily report.

For instance: the acceptance of certifiedFFB on 27th Feb 2014 was 10.870 Tonesfrom SSE Block T004; and acceptance of non-certified FFB on 25th Feb 2014 was 2.292 Toned from KKPA-ASC Div IV Block F050.

Status: Compliance

2.2

The facility shall inform the CB immediately if there is a projected overproduction.

As stated in declaration-1 inSCCS procedureNo. Policy: RSPO/501/SCCS/LMR, Rev. 01, on 1st November 2012 that the entire LMR fulfill the required criteria in SCCS standard, including to inform the certification body directly in case the production is exceeding the projected amount.

Mill fromJan to Dec 2013 produce CPO amount 35,952 Tonesand in Feb 2014 amount 41,680 Tonesfrom certified CPO amount45,919 Tones or still under the projected amount.

Status: Compliance

3 Record keeping

3.1

The facility shall maintain accurate, complete, up-to-date and accessible records and reports covering all aspects of these requirements.

SCCS procedure (RSPO/501/SCCS/LMR, Rev. 01, on 1st November 2012) part 4.2regulates the shelf life of record is at least for 5 years period. Interview with head of mill’s administration division, its known that fruit acceptance record is received, fruit further be processed and become CPO and be delivered to buyer.

All relevant document with certified and non-certified fruit acceptance, production process until become CPO and goes to bulking station will be recorded and stored including the daily production report in mill office documentation room. Mill presents the record for these report as well as last year report (2012, 2013 until Feb 2014) in an updated condition.

Status: Compliance

3.2 Retention times for all records and reports shall be at least five (5) years.

Mill presents the record forcertified and non-certified fruit acceptance, production process until become CPO and goes to bulking station from last year report (2012, 2013 until Feb 2014) in an updated condition, these documents are stored for at least 5 years (in accordance with SCCS procedure (RSPO/501/SCCS/LMR, Rev. 01, on 1st November 2012) part 4.2, which regulates the shelf life of record is at least for 5 years period

Status: Compliance

3.3 (a) The facility shall record and balance all receipts of RSPO certified FFB and deliveries of RSPO certified CPO, PKO and

palm kernel meal on a three-monthly basis. (b) All volumes of palm oil and palm kernel oil that are delivered are deducted from the material accounting system

according to conversion ratios stated by RSPO. (c) The facility can only deliver Mass Balance sales from a positive stock. However, a facility is allowed to sell short.

a. Mill presents the balance record over the accepted RSPO certified FFB from nucleus estate (Bebunga Estate, Sungai Cengal Estate and Bakau Estate), which is processed in mill and became CPO and send to Bulking Station (delivery). The data of the balance is prepared every month within one year, for instance: period 2012, and 2013

b. The balance for certified-FFB, CPO and kernel in Bebunga estate shows the entire CPO volume, kernel production from certified and non-certified FFB. The volume of this production is calculated based on ratio between certified FFB and


ASSESSMENT REPORT


OER (%) or oil recovery. The OER data over the average of CPO in 2013 is 23.09% and Palm Kernel is 4.80%. Monthly production volume presents the delivery data over CPO and PK and become the deduction over the stock of previous month.

c. CPO sale with a supply chain Mass balance (MB) model is calculated based on certified and non-certified FFB ratio and is sent in accordance with the existing positive stock (sent to bulking station) and to buyer.

Mill shows the record and balance for the entire certified and non-certified FFB, CPO and kernel production as well as monthly delivery and three-month summary. The balance data is prepared every month within a year period, for instance: in 2012, and 2013.

Status: Compliance

3.4 The following trade names should be used and specified in relevant documents, e.g. purchase and sales contracts, e.g. *product name*/MB or Mass Balance. The supply chain model used should be clearly indicated.

Bebunga mill will process the certified and non-certified FFB in order to get oil palm by using the supply chain Mass Balance(MB) model. Mill presents the summary data over the accepted FFB (total), processed and delivered for the period 2012-2013 and 2013-2014. But the sales contract points out that the supply chain is not in line with the SCCS supply chain model, which is the Mass balance model. It is stated in sales contract that the SCCS Segregation model (stated RSPO Certified Segregation), for instance Sales Contract No. 0028.1/LMR/KTR-MKS/LOK/XII /2013 on 5th December 2013. Noncompliance CAR No. 2014.10 SCCS

Verification on 1st April 2014

Organization has conducted training on 21st March 2014, which attended by important personnel in mill and estate (the attendance sheet is available); there is a memorandum from head of PSQM on 17th March 2014 that states the supply chain model is mass balance (copy of memorandum from head PSQM is available); there is a revision on the sales contract document that states the supply chain model is mass balance, for instance sales contract on 18 th March 2014, No: 00293-LMR-KTR/MKS/LOK/III/2014. Non-compliance CAR No 2014.10 SCCS is closed

Status: Compliance

3.5 In cases where a mill outsources activities to an independent palm kernel crush, the crush still falls under the responsibility of the mill and does not need to be separately certified. The mill has to ensure that the crush is covered through a signed and enforceable agreement.

NA - Bebunga mill has no KCP (Kernel Crushing Plant) and not send the Palm Kernel to get the palm kernel oil (PKO). The produced palm kernel is sent to bulking station (Sahang island, Durian river district, Kota Baru district, Kalimantan Selatan Province).

Status: Compliance

4 Sales and goods out

4.1

The facility shall ensure that all sales invoices issued for RSPO palm oil delivered include the following information:

(a) The name and address of the buyer

(b) The date on which the invoice was issued

(c) A description of the product, including the applicable supply chain model (Segregated or Mass Balance)

(d) The quantity of the product delivered

(e) Reference to related transport documentation

Bebunga mill process the certified and non-certified FFB to get oil palm by using the supply chain Mass Balance (MB) model and mill present the summary data over the accepted FFB, processed and sent for period 2012-2013 and 2013-2014. LMR shows the invoice regarding the RSPO certified product, but the invoice over CPO sale shows the supply chain Mass balance model, but in the Segregation (stated RSPO Certified Segregation), for instance, Invoice No.00526/LMR/XII/2013 on 18th December 2013 (for Sales contract number: 0028.1/LMR/KTR-MKS /LOK/XII /2013 on 5th December 2013).


ASSESSMENT REPORT


CAR 2014.11 SCCS Verification on 1th April 2014 Organization has conducted training on 21st March 2014, which attended by important personnel in mill and estate (the attendance sheet is available); there is a memorandum from head of PSQM on 17th March 2014 that states the supply chain model is mass balance (copy of memorandum from head PSQM is available); there is a revision on the sales contract document that states the supply chain model is mass balance, for instance sales contract on 21st March 2014, No: 00543/LMR/III/2014. Non-compliance CAR No. 2014.11 SCCS is closed However, the above invoice documents state below information:

- Buyer name and address: PT Golden Hope Nusantara

- Date of invoice is 18th December 2013

- MKS product name with supply chain segregation model (stamp) RSPO Segregation Certified; should state the Mass Balance.

- The delivered quantity or volume

Tax invoice as annex

Status: Compliance

5 Training

5.1

The facility shell specifies and provides the training for all staff as required to implement the requirements of the Supply Chain Certification Systems.

The latest SCCS training was conducted on 3rd November 2012 and attended by 25 participants from every Estates andmill in Bebunga capital office. SCCS training material, which presented by the assistantof PSQM Bebunga Factory.

SCCS training has not been conducted periodically after 3rd Nov 2012 to guarantee personnel’s understanding over the standard requirement(period 2013); and during the visit in Bebunga mill, some important personnel in Bebunga mill (BBF) can not present their evidence that they had attended the SCCS training, for instance: Factory Manager, and Factory assistant. Noncompliance CAR 2014.12 SCCS Verification on 1st April 2014 Organization has conducted training on 21st March 2014, which attended by important personnel in mill and estate (the attendance sheet is available); non-compliance CAR 2014.12 SCCS is closed

Status: Compliance

6 Claims

6.1 The facility shall only make claims regarding the use of or support of RSPO certified oil palm products that are in compliance with the RSPO Rules for Communications and Claims.

As stated in declaration-6 annex in SCCS (RSPO/501/SCCS/LMR, Rev. 01) on 1st November 2012 that the entire certified CPO product refers to the RSPO Guideline for Communication and Claim regulation.

However, as a reference on RSPO guidelines for Communication and Claims regulation, if the LMR (Bebunga Mill) using RSPO symbol on its product, should use the latest version per 30thNovember 2011. OFI#2. SCCS

Status: Opportunities For Improvement


ASSESSMENT REPORT


3.3. Conformity Checklist of Certificate and Logo Use

1. Evidence of permission or approval certificate and logo from Certification Body which submitted by Client

X or√

S-2 Since earning the certificate, PT. Langgeng Muaramakmur never sales product with a certified claim

Status: Not Applicable

2. Implementation of certificate and logo used by Client comply with size and type (shape) against Guideline of Logo Use

X or√



3. Implementation of Certificate and Logo is not used on product

X or√



4. Controlling of Certificate and Logo, including withdrawing inappropriate logo.

X or√




ASSESSMENT REPORT


3.4. Summary of RSPO Partial Certification.

Total companies visited (0.8 √Y) Where Y is the total of one holding company The company name : Mustika POM and PT Sajang Heulang full manage scheme smallholders (KKPA)

2.1

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

X or√

Pustika POM and PT Sajang Heulang full manage scheme smallholders are compliance with applicable laws and regulations.

√

2.2

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

X or√

PT Sajang Heulang scheme smallholders has demonstrated land use and not legitimately contested by local communities.

√

6.3

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

X or√

PT Sajang Heulang scheme smallholders has documented system for dealing with complaints and grievances, which is implemented and accepted by all parties

√

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.

X or√

PT Sajang Heulang scheme smallholders has SOP of Land Compensation Standard and Identification No. 001/PSDS-L&AS, describe Land identification, settlementpatterns, ConsultativeProcessClaims, Payment andReportingProcedures.

√

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.

X or√

PT Sajang Heulang scheme smallholders have not replaced primary forest or any area required to maintain or enhance one or more High Conservation Values

√

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.

X or√

Nolandcompensation processduethe entire smallholders’ scheme plantationlandisthe property oftheir respectivemember smallholders(land tenure is aCertificate ofOwnership). PT Sajang Heulang operating the operational activity (full manage scheme smallholders)

√

7.6

Local people are compensated for any agreed land acquisitions and relinquishment of rights, subject to their free, prior and informed consent and negotiated agreements.

X or√

Nolandcompensation processduethe entire smallholders’ scheme plantationlandisthe property oftheir respectivemember smallholders(land tenure is aCertificate ofOwnership). PT Sajang Heulang operating the operational activity (full manage scheme smallholders)

√


ASSESSMENT REPORT


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

3.5.1 Identification of Findings, Corrective Actions andObservations at ST2 Assessment

During the ST-2assessment, there were 11(eleven) Nonconformities were assigned against Minor Compliance Indicators, 16 (sixteen) opportunities for improvement were identified. Further explanation of the non-conformities raised and corrective actions taken by the company are provided in this section. The company prepared a corrective action that was reviewed and accepted by MUTU and corrective actions taken to close all non-conformities shall be verified during next assessment.

CAR No

Ref Std

Finding Area Grade Time

Limits Corrective Action Observation Status

Closing Date

2011.04 1.2.1 Types of public information–There is no documented procedure or policy of classification of information that can be published, or excluded (treated confidential) which refers to the prevailing laws and regulations (eg: Law no. 14 of 2008 on Public Information Transparency).

Estate &POM

NC To be CFA

Prior to Stage 2

LMR should provide information management procedures that explicitly classify the types of information/data that can be published and those that should be kept confidential by referring to the Law no. 14 of 2008.

There is revised version of SOP for Request for Information (050/LMR-INF/C11) which specifies/classifies documents that may be notified to the stakeholders, but dod not yet specify / classify documents that are not allowed to be given to the stakeholders.

January 17, 2013

Available SOP Request for Information has been revised (050/LMR-INF/C11) \ and has been listed / grouped the list of documents that should and should not be given to stakeholders.

Closed January 18 2013

2011.22 4.7.10 Record of accidents–The company is encouraged to more accurately define 'Occupational Accident Causes' (in the Accident Monitoring form) so as appropriate corrective actionscan be taken and the same event can be avoided. For example: an accident taking

POM CFA Prior to Stage 2

Company must determine the causes of accident and corrective actions in order to avoid recurring of the accident in the record.

Company has record of occupational accidents and reported it in the montly Safety Officer report. For POM,no occupational accident takes place during 2011. Likewise, the occupational incidences in estates are also recorded, for example: In Bakau Estates during 2011 (till April



ASSESSMENT REPORT


CAR No

Ref Std



Closing Date

place at the POM in January 2011, it is stated that the cause of the accident is "contact with the surface of hard object".

2011), occupational accidents are recorded ranging from abrasion up stab wound totalling 14 incidents and lost work time incident of 16 days. These events are analyzed, but root of causes and corrective actionshave not been set (safety officer monthly report)

January 17, 2013 The Company has recorded every work accident event in the Accident Investigation Report Form, and the root cause and corrective action. All data related accidents are examined and reported every month in the form of Safety Officer report.

2011.23 4.8.2 Record of training–The company is encouraged to provide training record that has been followed by all employees, including those followed by the foreman.

Estate Minor Prior to Stage 2

Company must provide record of trainings that have been attended by its workers (certified or not certified)

Company has prepared records of training for structural level, but focusing on trainings with certification or trainings without certification are not recorded. For example, HCV training in the name of Hendri Nardes (Estate’s Senior Assistant).

January 17, 2013

There is a record of training that has been participated by all employees, including the type of training that has been participated and has been certified or not.


2011.25 5.1.2 6.1.4

Records of environmental management report - LMR has

Estate dan

CFA Prior to Stage 2

LMR should review the policy of preparation and submission

Company has sent its RKL / RPL Report according to the internal PSD



ASSESSMENT REPORT


CAR No

Ref Std



Closing Date

presented RKL / RPL Report covering POM and estate areas (South Kalimantan), but has not been consistently communicated to the relevant agency. For example: Report II period 2010 whose documented delivery to relevant agency is not available.

POM of RKL / RPL report that can be delivered to the relevant agency more timely.

policy to the relevant agency, but it is still in formal submission process.

January 17, 2013

Provided Report of RKL / RPL Implementation Period II in 2012 cover all aspects recommended in the approved Environmental Management including replanting activities.

2011.26 5.1.2 6.1.3

Revised environmental management document - RKL / RPL Report has not been fully in accordance with EIA (Environmental Impact Analysis) results.

Estate &POM


RKL / RPL records should be adjusted with the EIA results

Company has not fully followed up the adjustment of RKL / RPL document with EIA outputs.

January 17, 2013

PT. LMR has conducted environmental management and monitoring activity in accordance with the passed RKL / RPL document. All aspects are monitored and managed in accordance with the EIA document.. All aspects are monitored and managed in accordance with the AMDAL Document.


2011.29 5.2.5 Trained personnel dealing with species protection–The company has appointed a dedicated supervisory officer of HCVA (Buffer Zone) for each estate, but there is no evidence of training for such personnel.


LMR must show documented evidence of HCV management training attended by its dedicated officer dealing with HCV management.

Company was unable to demonstrate that the dedicated officer responsible for HCV management is a well-trained person, although the Company has planned to organize a HCVtraining in cooperation with BKSDA.



ASSESSMENT REPORT


CAR No

Ref Std



Closing Date

January 17, 2013

Has provided evidence of record that person in charge for the management of NKT have been trained.

2011.33

5.3.4

Waste monitoring records - Monitoring of hazardous waste, as recorded on the Card Warehouse in the POM, yet includes all the waste referred to in the SOP No. 700/IK-TQEMESH/10 regarding Quality Standard of Hazardous Waste & Non-hazardous Waste and Government Regulation No. 18/1999. In conjunction with Government Regulation No. 85/1999. For example: Record of Hazardous Waste in the POM just specifies used oil and batteries.

CFA POM Prior to Stage 2

Company shall review its documented policy of hazardous waste monitoring by including all types of hazardous waste.

Monitoring of waste is carried out in the POM with complete records, but an analysis should be conducted in order to ensure that the organization will reduce the volume of waste and more efficient use of materials

January 17, 2013

Provided waste monitoring document, such as the Central Warehouse Card Documentation (TPS LB3) in PALM OIL MILL Bebunga including used oil, filters, light scrap, cloth rags, packaging and other pesticides.


2011.35 6.1.1

Social impactanalysis - social impact assessment has been carried out in January 2010 covering both positive and negative impacts of the operation of the company. However, the company is encouraged to present quantitative data, for example, data related to contributions made by company to improve household incomes of local people.

Estate & POM


Company must expolicitly specify the positive and negative impacts arising from its plantation operations in the Social Impact Analysis document.

The company’s social impact analysis report has not explicitly presented the positive and negative impacts arising from the estate operations.

January 17, 2013

Provided report of Proceedings Social Impact Study Result that has presented data about positive and negative effects on society.


2011.36

6.1.2

Public participation in environmental management -

Estate & POM


Company must invite the local people to actively involve in

Community has not actyively been involved in the management and



ASSESSMENT REPORT


CAR No

Ref Std



Closing Date

The social impact assessment results indicate the existence of community involvement as information giver. The company is encouraged that in the next monitoring process, the community is actively involved in the management and monitoring of social impacts.

the periodical management and monitoring of social impacts

periodic monitoring of social impacts.

January 17, 2013

Has provided evidence of record for social impact study in 2011 and 2012 involving the public in filling out the questionnaire, and the integration between the Regional Development Plan council with Social Impact Assessment 2012 has been implemented in the form of CD / CSR program in 2012.

2011.38

7.2.1, 7.2.2;

7.4

Soil survey - Record of soil suitability for development of HGU land is unavailable.


Company must provide record of soil suitability survey for the developed HGU areas.

There are still 594 hectares of land that has not been surveyed. But the company has a land survey program as indicated in a request letter addressed to the MRC for semi-detailed survey conducted in the Division IV of BBE.

January 17, 2013

The company has condected surveys of land in the area Bebunga Estate area of 1.162 Ha, but still there are area 594 Ha of land survey has not been done since the area is an area that is included in the deal "status quo" by agreement between PT. LMR with the Segendang village residents. Condition of the area is not a new opening or replanting.



ASSESSMENT REPORT


CAR No

Ref Std



Closing Date

2011.41

2.2.5 6.3.1

Company was unable to present a prove that the Revised SOP for Conflict Resolution prepared in June 2011 is acceptable to the relevant parties

Minor Prior to S1

Company must prove that the Revised SOP for Conflict Resolution drawn up in June 2011 can be accepted by the parties

January 17, 2013

There is record evidence of socialization SOP Conflict Resolution to employees and communities surrounding the plantation.


2011.42 4.4.2

Company was unable to present records of water treatment activities in the estate including water quality monitoring records. But the Company has prepared a monitoring plan in the second semester of 2011.

Estate Minor Prior to S1

Company must be able to demonstrate documented record of POM’s water management activities including records of the water quality monitoring activities

January 17, 2013

Company has conducted testing for river water periodically at 3 locations (S.Tamiang, S. Bebunga & S. Lintang) and conducted testing at 7 locations reservoir (1 reservoir at Sungai Cengal, and 3 reservoirs at Bakau Estate).


2011.43

4.6.5 Chemicals categorized as Type 1A or 1B WHO, among others, Pesticide with active ingredients of Delthametrin (Decis) and active ingredient Brodifakum (Klerat and Ratgon) are found but not applied by the company.

Estate CFA Prior to S1

To ensure that the chemicals categorized as 1 A and 1 B WHO are not used, the company is recommended to have a commitment to reduce or eliminate their use.

January 17, 2013

A review of document and field visits found no pesticide Group 1 A & 1 B WHO used by company.


2011.44

4.7.8 Inspection of First Aid kits has not been fully carried out for several activities in the garden or in the POM. For example: FIRST AID kit available in FFB harvesting activities, all first aid kits in POM area.

Mill and Estate

CFA Prior to S1

Company should complete its inspection of FIRST AID kits at the work site, eg: FIRST AID box in FFB harvesting activities and all first aid boxes in POM area.

January 18, 2013

The result of field observation in S. Cengal Estate, Bakau Estate &PALM OIL MILL Bebunga, all K3 equipment (PPE, fire extinguisher & Hidrant to PALM OIL MILL) monitored regularly every month in good condition. As for the completeness of the equipment box P3K monitored every week.


2011.45 4.8.1 Training for staff and contractors Estate CFA Prior Company is recommended to January 17, 2013 Closed January 18


ASSESSMENT REPORT


CAR No

Ref Std



Closing Date

7.1.3 has been identified, including RSPO training program attended by the company in both estate and POM. But the audit team did not find the documented identification of training programs for KKPA or plasma farmers in which the KKPA and the Company (LMR) have interest in the activities undertaken by the farmers.

toS1 identify and create training programs for the KKPA or plasma.

Identification Matrix Training has been provided to the farmers KKPA or Plasma, among others; harvesting, general K3, ISPO, RSPO, Integrated Pest Disease.

2013

2011.46

5.2.2 5.2.3

Program created by the Company have not fully refer to the HCV management document. For example effort to enrich rare and protected flora species, such as Ulin, Gaharu.

Office and Estate

CFA Prior to S1

Company is recommended to review the management program in accordance with the directives of HCV management set forth in the HCV documents.

January 17, 2013

There is record evidence that the company has conducted action enrichment program as recommended by the Report of Identification of NKT.


2011.47

6.1.2 The company’s social impact analysis document has not explicitly specified more relevant quantitative data.

Office and Estate

CFA Prior to S1

The company managmenet unit is recommended to establish a plan for Social Impact Analysis for the next period which presents more relevant quantitative data.

January 17, 2013

Has provided further evidence of the results of the Study of Social Impact Assessment of 2010 in the form of Social Aspects of Economic PT. Langgeng Muaramakmur. In 2012Social ImpactAssessmenthas beenconductedand the results have been integrated well with the results of the Council of the Regional Development Plan. The result of the integration between the Council of the Regional Development Plan for the Social Impact Assessment 2012 program has been implemented in the form of CD / CSR in 2012.



ASSESSMENT REPORT


CAR No

Ref Std



Closing Date

2011.48

6.1.5 Company has no sufficient evidence of identification of social impacts (positive and negaitf) on the smallholder scheme including management or actions to be taken.


Company must identify the social impacts (positive and negaitf) on the smallholder scheme including management or actions the company should perform.

January 17, 2013

Has provided advanced reporting Social Impact Study 2011 & 2012 for the main plant and Plasma plant explaining the negative and positive impact on society.


2011.49

6.3.2 Thehandling ofcomplaintsin addition tothe landclaim, conductedintemporarybecausethe complaintis notpublicsubmittedin writingso thatthe companyhas norecord.

Office CFA Prior to S1

The company is recommended to socialized the community complaint can be submitted in writing so the company can make record for the complaints

January 17, 2013

Has provided communication log book in each estate that contains all incoming Letter (including if any public complaints).


2011.50

6.11.1 CD / CSR programs already done by the company are not fully in accordance with the Basic Need of the local community.

POM and Estate

CFA Prior to S1

Company is recommended to prepare CD/CSR Program in accordance with the Basic Need the surrounding community.

January 17, 2013

Provided evidence of record contribution to local development in the form of payment of tax (PBB), Implementation of CD / CSR has been adapted to the needs of surrounding community.


2011.51

7.5.2 The company should conduct socialization of its planting plan for land cleared in 2008 covering 141 Ha.

Estate CFA Prior to S1

Company is advised to have documented socialization of plantation opening plan including the planting plan of land cleared in 2008 covering 141 Ha.

January 17, 2013

Not found new development areas or replanting at local land


2011.52

8.1.1 Company has not fully made an action plan based on the outputs of evaluation of monitoring and assessment of environmental and social impacts such as the outputs of monitoring and assessment of reservoir water quality that exceeds


Company/organization must establish an action plan based on evaluation of monitoring and assessment of environmental and social impacts such as results of monitoring and assessment of

January 17, 2013

The Company has evaluated the test results related to reservoir water that exceeds the quality standards and have performed acts such as Water Treatment Plan.



ASSESSMENT REPORT


CAR No

Ref Std



Closing Date

the standard parameter of TSS, such as in Bakau Estate

reservoir water quality that exceeds the quality standard for parameter of TSS for example in Bakau Estate

2011.53

SCCS 2.2 (2009)

2.1 (2011)

In practice, any documents inconsistent with the received or incoming FFB, LMR confirms it to the driver by verifying the garden (SPB maker). Mechanism or procedure to handle documents inconsistent with raw materials is unavailable.

Mill Minor Prior to Stage 1

Company must create a mechanism or procedure to address non conformance raw materials (documents)

January 18, 2013

PALM OIL MILL Bebunga has mechanism / procedure in handling mismatche of raw material by separating receipt document are certified and not certified to use a different stamp.


2011.54

SCCS 3.1 (2009)

4.1 (2011)

There is no a procedure for sale and delivery of certified CPO which details category of raw material mentioned in the minutes and invoice of CPO to be dispatched.


Company must make arrangements by mentioning raw material category (Massbalance) on the minutes and invoice of CPO to be sent

January 18, 2013

In the procedure Number: RSPO/501/SCCS/LMR Revision o1 dated 1 November 2012 stated that the delivery of product to the buyer (CPO & Kernel) and selling of product include model informationSupply Chain Mass Balance


2011.55

SCCS 5.2 (2009)

3.2 (2011)

The retaining period of records on the supply chain production of CPO for 5 years has not been fixed, for example of daily production report, monthly production statistic, grading recapitulation in Pondok Labu POM.

Mill CFA Prior to Stage 1

Organization is recommended to set the retaining time of records and reports of at least 5 years relevant to SCCS.

January 18, 2013

In the procedure Number: RSPO/501/SCCS/LMR Revision 01 dated 1 November 2012 explained that the shelf life of the entire record / records or reports of TBS receiving in PALM OIL MILL, CPO processing, product storage (CPO, Palm Kernel) following delivery to the buyer is 5 years.


2011.56

SCCS 5.3.a

There is data or record of FFB accepted and CPO produced and

Mill CFA Prior to Stage 1

The POM unit is recommended to prepare a

January 18, 2013

PALM OIL MILL Bebunga has Closed January 18

2013


ASSESSMENT REPORT


CAR No

Ref Std



Closing Date

5.3.b(2009) 3.3.a 3.3.b (2011)

sold and the remaining stock on a monthly basis, but still not in the form of a monthly balance sheet recapitulation.

monthly balance sheet of the acceptance and delivery of certified CPO and the remaining stock.

recorded and balancing all certified and non-certified TBS production, and the delivery of CPO and Kernel in the Monthly Summary of Sustainable Report FFB, CPO and Kernel. There are also reports Monthly Period 3.

2011.57

SCCS 6.1 7.1 (2009) 5.1 6.1 (2011)

The company has implemented the SCCS implementation supporting system, in the form of Sime Weight System, SPB and related procedures, but a specific SCCS training has not been conducted, although the relevant training plan has been prepared to be held on the middle of June 2011.


POM should conduct a specific training on SCCS in accordance with the training plan.

January 18, 2013

The Company has conducted training SCCS on 3 November 2012 that locatedi in big office Bebunga Estate. The training was attended by 24 participants with the material presented in the form:TrainingMatrixSCCS and RSPO/501/SCCS/LMR Revision 01. In the Declaration-6 (1 November 2012) stated that the claims of the product (CPO & PK) RSPO certified in compliance with RSPO Guideline for Communication and Claims.



ASSESSMENT REPORT


3.5.2 Identification of Findings, Corrective Actions andObservations at S1Assessment

During the S1assessment, there were 1(one) Nonconformity (ies) were assigned against Major Compliance Indicators, and 6 (six)opportunities for improvement were identified. Further explanation of the non-conformities raised and corrective actions taken by the company are provided in this section. The company prepared a corrective action that was reviewed and accepted by MUTU and corrective actions taken to close all non-conformities shall be verified during next assessment.

CAR No

Ref Std Non Conformity Location Grade Time Limit

Corrective Action Observation Status Tanggal Closed

2013.01

Major 6.2.1

Socialization SOP regarding the relationship with the Society. Provided SOP Communication and Consultation Communication with the public following record evidence of communication with the public. However, based on field visits in 3 Villages (Desa Lintang Jaya, Desa Balaimae and Desa Segendang) obtained information that the public has not been getting socialization about procedur above.

Kebun &

Pabrik

Major 19 Maret 2013

The company must submit / Communication and Consultation Procedure socialize with transparent methods to local communities and affected other groups.

January 23, 2013

Provided record in the form of Attendance, Socialization Material & socialization implementation pictures, SOP regarding the relationship with the community in the Desa Tamiang, Binturung, Lintang Jaya, Segendang, Kladen & Mulyoharjo/Sebang-au.

Closed 23 Jan 2013

3.5.3 Findings identification, corrective actionsand Observation during the Assessment of Surveillance 2

CAR No.

Ref. Std.

Findings Location Grade Deadline Corrective

Actions Observation Status

Closing date

2014.01

Major 4.6.1

Ensure the registered and licensed agrochemical in relevant agency. Company using several agrochemicals to control plantation pest and disease. However, the audit team found agrochemical type kenlon

plantation Major 2 May 2014 Company is mandatory to ensure the used agrochemicalsare licensed and registered in

19th March 2014 Root cause: Herbicide with kenlon and metafuron have been registered in fertilizer and herbiside directorate, however,

Closed 2nd April 2014


ASSESSMENT REPORT


(with an active Triklopir) and Metafuron (with an active Metil Metsulfuron), which have not licensed yet and have not registered in relevant agency, for instance: chemical warehouse in Sungai Cengal Estate and Bebunga Estate

relevant agency. the company has no proof whether this type of herbiside has been licensed or registered yet. Corrective Action: - Reccomendation letter for

using and storing the pesticide from manpower and transmigration agency for herbiside type kenlon and Metafuron, on 1st April 2014.

- Copy of permit for herbiside type kenlon and Metafuron from fertilizer and herbiside directorate in 2012.

Preventive Actions: Always updating the latest information about perticide permit in case the company using new brand of pesticide Auditor conclusion: Based on the evidence of corrective action, nonconformities stated fulfilled

2014.02

Major 4.6.4

Managing waste (former pesticide packages).

Audit team found former pesticide package that has not been managed in accordance with existing regulation of pesticide

Major Plantation 2nd May 2014

Company must manage former pesticide package in accordance with existing regulation, for

Root of the problem: 1. Lack of socialization on the

SOP of former pesticide package management in plantation. The SOP has set the maximum storing period

Closed 20th March 2014


ASSESSMENT REPORT


waste management (001/SOP/LMR/2013, on 15th October 2013), where the former pesticide packages should wash, be damaged and send to temporary hazardous waste landfill.

It was identified the storage period for former pesticide packages are more than 15 working days in the warehouse of Sungai Cengal Estate (reccomendation letter from BLH No. 660/416/BLHD on 16th Nov 2012). for instance: duration of delivery for former pesticide package in September 2013 dan February 2014 from Sungai Cengal estate to Bebunga mill.

instance: should be based on reccomendation from environment agency.

is 15 working days. Corrective Actions:

The reguler 2-weeks delivery of hazardouse waste has been routinely implemented. Delivery day is on saturday.

Improvement evidences such as washing activity’s photos and minutes of handover are already in accordance with the existing SOP

Preventive Actions: 1. pointedMr. Suprapto Isup

as officer in charge to monitor the delivery of hazardouse waste.

2. It was agreed, the delivery day is on saturday

Auditor conclusion: Based on the evidence of corrective action, nonconformities stated fulfilled

2014.03

Minor 4.7.2

Periodic medical examination Medical examination for personnel is conducted by health care clinic. For instance: medical examination on 10th May 2013 with the result that there are 3 personnel should get further examination by company’s

Mill Minor Surveillance 3

Company should conduct periodic medical examination for personnel especially for high risk personnel.

-


ASSESSMENT REPORT


physician, such as Mr. Hasnadi (has obstructive and mild hearing impairment), however, the company can not present an evidance of the evaluation as well as effective follow up actions over this case

The medical examination should be performed by licensed physician and be implemented in an effective way and completed with an evaluation.

2014.04

Minor 4.7.6

Working Tools, PPEandfirst aid kits Company provides occupational health and safety tools as well as personnel protective equipments (PPE). From field visit, its known that the implementation of occupational health and safety in the company is in-consistent, for instance: - In mill, personnel unwearing the

PPE when they work, such as welder unwearing apron, the operator of generator unwearing ear muff/ear plug

Mill Minor Surveillance 3

Company must have sufficient evidance on occupational health and safety compliance in work place and effectively implement it.

-

2014.05

Minor 5.2.1

HCV socialization

Based on field visit to Mulyoharjo, Lintang Jaya, Segendang, and Binturung village, it known that local community not fully understand about the existing HCV and its management in plantation area.

Plantation Minor

Surveillance 3

Company needs to socialize the existing HCV and its management to personnel and local community.

-

2014.06

Minor 5.2.2

Special officer who is well trained to monitor and to manage the HCV No sufficient evidance on the existance of special officer who is well

Plantation Minor

Surveillance 3

Company must points out special officer who is well trained to monitor

-


ASSESSMENT REPORT


trained to monitor and to manage the HCV in SCE and BKE

and manage the HCV in SCE and BKE

2014.07

Minor 5.3.1

Hazardous Waste Management Company has delivered the hazardouse waste to licenced collector on 2nd March 2014, for instance: in hazardouse waste landfill (mill), however, the duration was exceeding the allowed duration based on regulation (PP No.18/1999) – 180 days.

Plantation Minor

Surveillance 3

The company should implement the hazardouse waste management plan in accordance with applicable regulation.

-

2014.08

Major 5.3.2

Domestic Waste Management Based on field visit to final landfill in Block H24 Bebunga Estate, its known that the un-organic and organic domestic waste have not been managed in accordance with the SOP of domestic waste management, for instance: separation between organic and un-organic waste, the un-organic waste should be burried, etc.

Plantation Major 2nd May 2014

Company should have the management plan for domestic waste in order to avoid and reduce the pollution through the SOP of domestic waste management.

Root of the problem: Lack of socialization over the mechanism/ SOP for domestic waste management to personnel. The domestic waste has not been managed in accordance with the SOP. Corrective Actions:

SOP revision regarding to domestic waste on 4th March 2014, especially in Point 5.2.1 the management in operation unit.

Waste storage in final landfill Block H24 and the establishment of new hole for waste.

Preventive Actions: Conducting periodic

Closed 20th March 2014


ASSESSMENT REPORT


monitoring. Auditor conclusion: Based on the evidence of corrective action, nonconformities stated fulfilled

2014.09

Minor 6.1.1

Social impact monitoring.

Company periodically monitors the social impact by involving local community participation - with questioner -howeverbased on field visit to Binturung, Mulyoharjo and Lintang Jaya village, the social impact monitoring not including community’s concern, such as: community’s perception over replanting, company’s contibution on improvement of village infrastructure; company’s response and its type of communication, the management of negative impact and improvement over positive impact of the plantation, etc.

Plantation Minor Surveillance 3

Company should implement the social impact management and monitoring plan by involving local community through sustainable development and improvement.

-

2014.10

Butir 3.4 SCCS Versi Nov 2011 (Modul E)

The usage of supply chain model in sales contract. BBE mill process the certified and non-certified FFB in order to get oil palm by using the Mass Balance (MB) supply chain model and mill presents the summary data over total accepted FFB, which was processed and was delivered for period 2012-2013 and 2013-2014. However, sales contract states the Segregation supply chain

Mill NC 2nd April 2014

Organization is mandatory to explain data likeproduct name, */MB or Mass Balance supply chain model in related document.

Root of the problem: Bebunga mill not using the Mass Balance supply chain model on processing the FFB, even though the sales contract states the segregation supply chain model due to lack of understanding on the requirements of mass balance supply chian model. Corrective Actions:

Closed 1 April 2014


ASSESSMENT REPORT


model (states RSPO Certified Segregation), for instance Sales Contract No. 0028.1/LMR/KTR-MKS/LOK/XII /2013 on 5th December 2013.

Organization has conducted training on 21st March 2014, which attended by plantation and mill’s important officers(attendance sheet is available); there is a memorandum from head PSQM on 17th March 2014 that states the existing supply chain model is the mass balance supply chain model (copy of memorandum from head PSQM is available); there is a revision over the sales contract document, which states the supply chain model is mass balance supply chain model, sample of sales contract on 18th March 2014, No.: 00293-LMR-KTR/MKS/LOK/III/2014. Preventive actions: Periodic review over mass balance supply chain model and coordination with all party including the marketing team. Auditor conclusion: Based on the evidence of corrective action, nonconformities stated fulfilled


ASSESSMENT REPORT


2014.11

Point 4.1 SCCS Version Nov 2011 (ModuleE)

Invoice with supply chain model. BBE mill process the certified and non-certified FFB in order to get oil plam by using the Mass Balance (MB) supply chain model and mill presents the summary data over total accepted FFB, which was processed and was delivered for period 2012-2013 and 2013-2014. However, sales contract states the Segregation supply chain model (states RSPO Certified Segregation), for instance Sales Contract No. 0028.1/LMR/KTR-MKS/LOK/XII /2013 on 5th December 2013.


Facility should ensure the entire invoice for RSPO certified product states information such as product’s supply chain model, which is the mass balance supply chain model.

Root of the problem: Bebunga mill uses the mass balance supply chain model in processing FFB, nevertheless the invoice states segregation supply chain model due to limited knowledge on the requirement of mass balance supply chain model’s. Corrective Actions: Organization conducted training on 21st March 2014, which attended by important personnel in plantation and mill (attendance sheet is available), there is memorandum from head of PSQM on 17th March 2014 that states the supply chain model is mass balance (copy of memorandum from head of PSQM is available); there is a revision over the sales contract, which states the supply chain model is the mass balance, for instance sales contract on 21th March 2014, No.: 00543/LMR/III/2014. Preventive Actions: Periodic review over mass balance supply chain model

Closed 1st April 2014


ASSESSMENT REPORT


and coordination with all party including the marketing team. Auditor conclusion: Based on the evidence of corrective action, nonconformities stated fulfilled

2014.12

Butir 5.1 SCCS Versi Nov 2011 (Modul E)

The latest SCCS training was conducted on 3rd November 2012 and attended by 25 participants from every Estates and mill

SCCS training has not been conducted periodically after 3rd Nov 2012 to guarantee personnel’s understanding over the standard requirement (period 2013); some important personnel in Bebunga mill (BBE) can not present their evidence that they had attended the SCCS training, for instance: Factory Manager, and Factory assistant.


Organization should conduct the training for all personnel as required by the SCCS’ requirement and can be proofed.

Root of the problem: SCCS training has not been conducted periodicallyand some important personnel in Bebunga mill (BBE) can not present their evidence that they had attended the SCCS training Corrective Actions: Organization conducted training on 21st March 2014, which attended by important personnel in plantation and mill (attendance sheet is available), Preventive Actions: Conducting periodic SCCS training as a remedy/ refreshment to related personnnel. Auditor conclusion: Based on the evidence of corrective action, nonconformities stated fulfilled.

Closed 1stApril 2014


ASSESSMENT REPORT


3.5.4 Opportunity for Improvement

No Ref.Std Description (Penjelasan)

1 Minor 4.3.1

Marginal Soil’s Map

Company needs to consider to complete or to draft the marginal or less fertile soil map, which identified by using the visual method, for instance:the color of leaf, low productivity to separate the minimizing approach and erosion control and land degradation by applies the empty fruit bunches or other treatments.

2 Minor 6.1.1

Social Impact Monitoring

Company needs to increase the social impact monitoring in order to anticipate the rumors over community’s concerns like: 1. Perception on the replanting activity, 2. Company’s contribution toward the improvement of village’s infrastructure, 3. Company’s respons and communication typecan be anticipated.

2 Point 6.1. SCCS Period

Nov 2011

As a reference toward the RSPO guidelines for Communication and Claims, the LMR (Bebunga mill) will present and use the latest version of RSPO symbol (on 30th November 2011) on its product.

3.5.5 Noteworthy Positive Components

No Ref.Std Description

1 - Committed to implement the sustainable palm oil managementprinciples with below actions:

- Enthusiasm on demonstrating the compliance toward RSPO principle’s requirements.

- improvement actions over the entire non-compliance findings in previous audit.

- Team cooperation between party and department.

- Personnel competency and skill based on their expertise.


ASSESSMENT REPORT


3.6 Summary of the rising-rumors from community, management response and auditor response. Public consultationon 24th February 2014 and 2nd March 2014

Rising-rumors from community Management’s responses Auditor’s responses

1. Environment agency, Kotabaru district – Kalimantan Selatan (pollution and hazardouse waste sub division)

Company has submitted periodic report regarding the environment management like RKL andRPL report every 6 months, as well as the three-months reportof waste management.

Company has had the environment license, such as land application permit and temporary hazardous waste landfill.

There is no report or complaint from local community regarding the environment pollution.

BLH conducting routine monitoring to company and the latest monitoring mentions that there is no violation.

Company has undertaken several positive activities to manage environment, and committed to maintain and improve these activities.

Company needs to ensure its compliance toward regulations and law’s requirement, which related to sustainable palm oil plantation management

2. Manpower Agency,Kotabaru District – Kalimantan Selatan

1. CP: Fuad Zaki (personnel’s supervisor)

- In general, PT LMRis one of company that obeys the law and regulation. Related to UMSP revision, company should comply the UMSP 2014. At present there is no visit from social, manpower and transmigration agency to ensure the implementation of UMSP 2014.

- Administratively speaking, Minamas Plantation was on time to send its routine report to agency, the delay of report submission due to distance, but company always sent the soft file through email before sent the copy of mandatory

Company’s possitive activities toward manpower will be monitored and be improved. Company commits to comly the man power regulation. Company will ensure the submission of report to related agency be on time. At present, the entire secretaies of P2K3 are having the occupational healt and safety expertise.



ASSESSMENT REPORT


reports.

- At present, P2K3 structure has got the endorsement from related agency. But social, manpower and transmigration agency requests the company to ensure the entire P2K3 secretaries have the occupational health and safety expertise.

2. CP: Yanti Rosalinda (Mediator for industrial relation)

- At present, independent worker union (SPM) has been registered in social, manpower and transmigration agency), the relation and communication with social, manpower and transmigration agency runs well, no urgent issue related to manpower.

3. Desa Mulyoharjo Ahmad (head of village) and village administrators

a. Possitive Aspects

In general, relation with company runs well in term there is no “big-scale” conflict.

There is no land conflict between local community and plantation

No indication of water pollution because the village is located in headwater.

Company came to Musrenbang meeting and is representedby officer from mill because Mulyoharjo village is company’s guided village.

There are some CSR grants such as: road pavement, meat grant and periodic grant amount Idr. 500,000,-

b. Negative Aspects

For routine grants will continue to be implemented such as CD/CSR through musrenbang meeting and through district’s bappeda.

Will improve its communication line with village and coordinate with each units so there is no overlap in communication net.

Continue to empower local community on company’s infrastructure development such as by involving local community in biding/tender.

Permission or leave request from staff will be based on need and the urgency of the event.



ASSESSMENT REPORT


The CSR grant is considered limited especially for village operational cost.

There are several effort to communicate this issue with company through letter or spoken, but company’s respons is slow, complicated and not sure. Some disappoinment from community rises because their grant request not well reponded by the company, such as: request for truck to transport community to establish KTP, request for road improvement has been submitted to Bakau Estate but was rejected by company with a reason – wrong address- instead of submitted the letter to mill. Proposals and letters have no response like letter on March 2013 regarding request to collect sand from monitoring, letter in 2012 regarding the request for bomax support, to help elder people, request for new year celebration, grant request for supporting the“Gerbang Sa’ajian”,activity, etc.

The guided-village concept is not clear enough and make community more confuse because adding beurocracy and seems to seems to prevent the communication.

Company’s representative in musrenbang not able to give decision. The realization of musrenbang result also slow.

Compare to other companies in east part of kalimantan (PT. Nusa lestari), CSR PT. LMR is very limited and complicated.

Staff of company who become the village board also experiences comlication when ask permission to attedn village event.

No empowerment on local bussiness in Mulyoharjo village, in term of purchasing, biding or contractor service.


ASSESSMENT REPORT


Payment disbursement usually conducted in night and it considers not female personnel friendly.

If staffs fall sick, they have to take treatment in company’s clinic. Letter from puskesmas is not accepted by company.

5. Lintang Jaya Village (Head of village)

a. Possitive Aspects

Work opportunity in company.

CSR activity such as meat grant, but the meat is not fresh anymore.

There are response letters to answer letters from community, but the realization of the letter statement is limited.

Cast grant Idr. 600,000 per month, but this grant will disburse every 3 months.

Company attends the musrenbang meeting but its representativeshave limited response.

c. Negative Aspects

Company’s response toward community’s aspiration is relatively slow, especially for the road condtruction

Communication with company runs quite un-smoothly and became more rarely especially after community received company’s unwell response.

Budget for village operation is considered limited and to small for a big company like Minamas

The offering for service contract is considered disciminative. well-paid service usually will be contracted to internal company.

Grant for elderly people ever exist, but now has been deleted.

For routine grants will continue to be implemented such as CD/CSR through musrenbang meeting and through district’s bappeda

Will improve its communication line with village and coordinate with each units so there is no overlap in communication


Company will conduct routine socialization for wildlife and flora protection and adequate communication mechanism to local community.



ASSESSMENT REPORT


There is no significant conpaint over environment pollution due to company’s mill and estate operation, the community only comlaints about the noise.

There is no socialization about wildlife and floral’s protection or adequate communication mechanisme been conducted

6 Segendang Village Arjansyah (Head of village)

PT. LMR has been established since 1992 and in 2006-2007 expanded its area. Even though there is an area of 300 ha that still in a conflict. Some community mentions taht they have not received fair compensation. However, this issue has been settled by the aggrement, which states that company will give compensation, nevertheless there are 3 people who not agree with this agreement yet. Community also considers that the company should allocate its area for plasma scheme, as required by the local regulation from district government. This regulation requires company to alllocate 20% of its area for plasma scheme. Regarding the replanting, there is no rising-rumors in Segendang, but neighbouring village thinks that after the replanting program is over, the area will return to the community. a. Positive Aspects

Before, recruitment is considered high, but now decrease because lot of personnel are resign or pension.

Company has established plasma plantation for 160 households, even though there is a conflict remaining with some people.

Company assists the establishment of harvesting road in community’s estate and this support really

For routine grants will continue to be implemented such as CD/CSR through musrenbang meeting and through district’s bappeda



Company will try to attend periodic musrenbang meeting



ASSESSMENT REPORT


help community.

There is no pollution indication, however there is a concern over river pollution. Community expects there is an improvement on water gate from nanga river to community’s residance.

The conflict resolutions by dialogue and constructive meeting.

b. Negative aspects

There is no socialization about wildlife and flora or HCV management.

Local empowerment over purchase or biding/ tender is very limited.

The impact of CSR activity is minor, but this situation is not a big deal since the community also benefited by the plasama scheme.

Company is not periodically attending the musrenbang.

7 Head of Binturung village (Mr. Arhat) and community leader(Mr. Iwas)

Interview with local community in Binturung village regarding the positive and negative impact from estate and mill’s operation,including gaining the information about social and landing issues. Positive issues: - There is no degradation or impact on the environment

due to estate and mill’s operation. - Increasing livelihood - No land disputes - There is cooperation between company and local

community to develop palm oil plantation (KKPA).



Estate still empower local community as its personnel, from SKU daily worker to supervisor level for monthly SKU, which regard to their skill, moreover next recruitment is not taken place yet because it needs time to consider company’s need.

Refers to CAR 2014.09 (Minor 6.1.1) Company periodically monitors the social impact by involving local community’s participation - with questioner - however based on field visit to Binturung, Mulyoharjo and Lintang Jaya village, the social impact monitoring not including community’s concern, such as: community’s perception over replanting, company’s contibution on improvement of village infrastructure; company’s response and its type of communication, the management of negative impact and improvement over positive impact of the plantation, etc.


ASSESSMENT REPORT


Negativeissues: - Limited work opportunity for community from mill’s area - Regarding the replanting activity, its not explaining the

status of HGU and previous land status (before PT LMR arrive) or conflict potency.

- There is a speculation that Binturung river been polluted because estate and mill’s operation.

- There is no guarantee that the HCV socialization has been implemented.

- Community from Binturung village requests their FFB to be processed in Bebunga mill

- Some complaints from local community are not responded yet, for instance: school transportation, road damage in village, etc.

8 Head of Segendang village (Mr. Arjansah)

Interview with local community in Segendang village regarding the positive and negative impacts from estate and mill’s operation; including to gain the information about social, land, environment as well as HCV issues Positive issue is relatively the samewith the information from binturong village and there are no environment degradation and indigenous land within the company’s plantation area. Negative issues:

- There is an area of ± 400 ha that not been managed by PT. LMR. There is a meeting that facilitated with local government to discuss this issue.

- Limited work opportunity for local community to work in mill

- Limited information over the status of HGU related



Estate still empower local community as its personnel, from SKU daily worker to supervisor level for monthly SKU, which regard to their skill, moreover next recruitment is not taken place yet because it needs time to consider company’s need.

Refers to CAR 2014.09 (Minor 6.1.1)


ASSESSMENT REPORT


to replanting activity - HCV management is not clear yet, for instance:

HCV are Gn. Peninjau (Donum Bolum)

9 Independent worker union (PT LMR)

Company never ban its personnel to join worker union, company provides facilities to establish worker union and provides facilities for SPM to conduct its activity. Company always allocates its time for meeting I case there is a manpower issue arise. At present, all personnel with working duration more that 3 months are automatically became the member of SPM and are mandatory to pay monthly cost amount Idr. 3.000 to support the SPM activity. There is no important issue regarding manpower.

Company will continue to comply the existing manpower’s regulation



ASSESSMENT REPORT

SPO – 4006a.5 Page 75

Prepared by Mutuagung Lestari for Bebunga Factory – PT. Langgeng Muaramakmur

4.0 CERTIFIED ORGANISATION'S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Sign-off of Assessment Findings

Hereunder sign by management representative from inspected company to acknowledge a field assessment and agree for all content explained in this assessment report, included of non-compliance findings.

Signed on behalf of:

Company Name

Mutuagung Lestari

Management Representative

Lead Auditor

Mohamad Pirabaharan

Taufik Margani

March, 2014

March, 2014


ASSESSMENT REPORT

SPO – 4006a.5 Page 76


No Institution/NGO/Community Address Phone/ELetter Form of Contact

Date of Contact

1 Environment Agency Kotabaru South, kalimantan - Interview February 28th,

2014

3 National Land Agency Kotabaru, South kalimantan - Interview February 28th,

2014

4 Labor and Transmigration Agency

Kotabaru, South kalimantan - Interview February 28th,

2014

5 Village leader of Mulyoharjo

Village

Village of Mulyoharjo, Subdistrict of pamukan utara, District Of Kotabaru, South kalimantan

- Interview March 02nd,

2014

6 Village leader of Lintang Jaya

Village

Village of Lintang jaya, Subdistrict of pamukan utara, District Of Kotabaru, South kalimantan


2014

7 Village leader of Segendang

Village

Village of Segendang, Subdistrict of pamukan utara, District Of Kotabaru, South kalimantan


2014

Village leader of Binturung

Village (Bp. Arhat) dan Tokoh

Masyarakat (Bp. Iwas)

Village of Binturung Subdistrict of pamukan utara, District Of Kotabaru, South kalimantan


2014

Village leader of Segendang

Village

Village of Segendang, Subdistrict of pamukan utara, District Of Kotabaru, South kalimantan


2014

Labour organization (Serikat

Pekerja Mandiri)

Subdistrict of pamukan utara, District Of Kotabaru, South kalimantan


2014

Appendix1. List of Stakeholder Contacted in the RSPO Certification Process


ASSESSMENT REPORT

SPO – 4006a.5 Page 77


DATE 28 February– 3March 2014 AUDITOR

PLANNED TIME

RENCANA WAKTU

ACTUAL DURATION

DURASI AKTUAL

PROCESSES / CLAUSES TO BE AUDITED

PROSES / HAL YANG DIAUDIT MM TM BB SP BP Y

Evaluasi

RSPO

Friday 28Feb

11.00-12.00 14.00-17.00

Opening Meeting Tim Audit

Documentation Review and verification and completing checklist:

Infirmation Records and Response

1.1; 1.2

√

√

Legal and requirements Compliances

2.1 √ √ √ √

Legality, permits and land status 2.2; 2.3 √ √

Feasibility economic planning in long term

3.1 √

Best Management Practices 4.1; 4.6 √ √ √ √

Conservation of Soil and water 4.2; 4.3; 4.4; 7.2; 7.4

√ √ √

Intergtrated Pest and Disease 4.5 √

Occupational Health and Safety 4.7; 4.8 √

Resp to environment and social 5.1; 6.1; 7.1; 7.7

√ √ √ √

Fire management and Prevention 7.7; 5.5 √ √ √

HCV and Protected areas 5.2; 7.3; √ √ √

Waste ad poluution and emission management and

5.3; 5.4; 5.6 √ √ √

Respo to development and social 6.7; 6.8; 6.9; 6.10; 6.11

√ √

Respo to workers 6.5; 6.6 √

Openness Communication, information and consultation to community

6.2; 6.3; 6.4; 7.5; 7.6

√ √

Continuous Improvement 8.1 √

Supply Chain S.C.C.S √ √

Saturday 1 March

08.00 – 12.00

14.00 – 16.30

Filed visit

Tim Audit

Sunday 2 March

08.00 – 12.00

Field Visit Tim Audit

Appendix 2. Assessment Program


ASSESSMENT REPORT

SPO – 4006a.5 Page 78


14.00 – 16.30

Completing Checklist

Monday 3 March

08.00 – 12.00

15.00 – 16.30

Kajian Dokumen / Auditor Review

Closing Meeting

Tim Audit

AUDIT LANGUAGE MAY DIFFERENT FROM THE LANGUAGE OF THE AUDITOR OR AUDITEE.

PENGGUNAAN BAHASA AUDIT MUNGKIN BERBEDA DARI BAHASA DARI AUDITOR ATAU AUDITEE


ASSESSMENT REPORT

SPO – 4006a.5 Page 79


Appendix 3. Glossary

EIA : Environmental Impact Analysis

PPE : Personal Protective Equipment

PFFT : Portable Fire Fighting Tools

B3 : Hazardous Waste

BAPEDALDA : Regional Environmental Impact Management Agency

BBE : Bebunga Estate

BBF : Bebunga Factory

BBM : Fuel Oil

BKE : Bakau Estate

BLH : Environmental Affairs Agency

BOD : Biological Oxygen Demand

BPN : National Land Agency

BSS : Block Spraying System

CITES : Confention On International Trade Endanger Species

COD : Chemical Oxygen Demand

CPO : Crude Palm Oil

CSR/CD : Corporate Social Responsibility/ Community Development

HCV : High Conservation Value

HGU : Land Exploitation Rights

HIRAC : Hazard Identification Risk Assessment Control

WWTP : Waste Water Treatment Point

JAMSOSTEK : Jaminan Sosial Tenaga Kerja (Social Security Plan for Workers)

KAN : Komite Akreditasi Nasional (National Accreditation Committee)

KKPA : Kredit Koperasi Primer Anggota(Primary Cooperatives Credit Members)

LC : Land Clearing

LD50 : Lethal Dosage (Certain dosage that can kill 50% of total population)

LMR : Langgeng Muara Makmur

NGO : Non-Governmental Organization

MSDS : Material Safety Data Sheet

P2K3 : Committee for Occupational Health and Safety Development

PBB : Land and Building Taxes

Permentan : Regulation of Minister for Agriculture

IPM : Integrated Pest Management


ASSESSMENT REPORT

SPO – 4006a.5 Page 80


PK : Palm Kernel

CLA : Collective Labor Agreement

POM : Palm Oil Mill

POME : Palm Oil Mill Effluent

PP : Government Regulation

PSD : Plantation Service departement

PUK : Working Unit Head

PSQM : Plantation Sustainablity Quality Management

RKL : Environmental Management Plan

RPL : Environmental Monitoring Plan

RSPO P&C : Roundtable on Sustainable Palm Oil Principle and Criterion

SCE : Sungai Cengal Estate

SKU : Business Unit

SOP : Standard Operating Procedures

SPSI : Indonesian Trade Union

ST1 : Stage 1 (Pre-Assesssment)

ST2 : Stage 2 (Main Assesssment)

S-1 : Surveillance 1

FFB : Fresh Fruit Bunches

UMR : Regional Minimum Wage

UU : Laws

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