stage-1 [ ] stage-2 [ ] minamas plantation - sime …. mutuagung lestari assessment report spo –...

PT. MUTUAGUNG

LESTARI

ASSESSMENT REPORT

Roundtable on Sustainable Palm Oil Certification

[ ]Stage-1 [ ] Stage-2 [√] Surveillance [ ] Re-Assessment

Plantation Management/Owner : MINAMAS Plantation - SIME DARBY Group

Plantation Name : PT GUTHRIE PECCONINA INDONESIA

Location :

Subdistrict Lawang Wetan, Babat Toman dan Sekayu/ District Musi Banyuasin/ Province South Sumatera

Certificate Code : MUTU-RSPO/017

Date of certificate issue : March 16th, 2012

Date of expiry of certificate : March 16th, 2017

Assessment Assessment

Date PT. Mutuagung Lestari

Auditor Checked

by Approved

by

ST-2 20 – 25 June 2011 Deni A. Novendi; Doni; Marsudi Eko

Santoso

Reny

Rustianingsih

Tony

Arifiarachman

S-1 29 January – 01 February, 13 February 2013

Deni A. Novendi; Bukti Bagja;

Marsudi Eko Santoso; Rudi

Ramdani

Octo HPN Nainggolan

Taufik Margani

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

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

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

MUTU Certification • Approved by RSPO Secretariat on June 2008

Assessment Submitted

to RSPO on: Approved

by RSPO on: Approved

by MUTUAGUNG LESTARI on:

S-1 - 15 April 2013

http://www.mutucertification.com/

PT. MUTUAGUNG

LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 1 Prepared by Mutuagung Lestari for PT Guthrie Pecconina Indonesia – Rantau Panjang POM

TABLE OF CONTENT

FIGURE

Figure 1. Location Map of PT Guthrie Pecconina Indonesia Figure 2. Operational Map of PT Guthrie Pecconina Indonesia

1 2

1.0 SCOPE of the SURVEILLANCE 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 8

2.4 Stakeholder Consultation and List of Stakeholders Contacted 10

2.5 Date of Next Surveillance Visit 10

3.0 ASSESSMENT FINDINGS

3.1 3.2

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

11 32

3.3 Conformity Checklist of Certificate and Logo Use 36

3.4 Summary of RSPO Partial Certification 37

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

40

3.6 Summary of Arising Issues from Public, Management and Auditor Responses 48

4.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Signing of Assessment Findings 51

APPENDICES

1. List of Stakeholders Contacted in the RSPO Certification Process 51

2. Assessment Program 52

3. Glossary 53

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT


Figure 1. Location Map of PT Guthrie Pecconina Indonesia

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT


Figure 2. Operational Map of PT Guthrie Pecconina Indonesia

PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 Page | 3

Prepared by Mutuagung Lestari for PT Guthrie Pecconina Indonesia – Rantau Panjang POM

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 The Plaza Lt. 36 Jl MH Thamrin Kav. 28-30 Jakarta 10350

1.2.4 Telephone +62-21-2992650

1.2.5 Fax +62-21-5711652

1.2.6 E-mail [email protected]

1.2.7 Web page address www.simedarby.com

1.2.8 Company status Swasta

1.2.9 Management Representative who completed the application for certification

Mohamad Pirabaharan (Head of PSQM)

1.2.10 Registered as RSPO member 1-0008-04-000-00 date of 08 September 2004

1.3 Type of Assessment

1.3.1 Scope of Assessment Palm Oil Mill and supply base

1.3.2 Type of certificate Single

1.3.3 Company names listed in the certificate PT Guthrie Pecconina Indonesia

1.3.4 Number of management unit 1 (one) palm oil mill unit (POM Rantau Panjang) with

FFB from 5 (five) estates unit, i.e.: Rantau Panjang

Estate (RJE), Bumi Ayu Estate (BYE), Karang Ringin

Estate (KRE), Napal Estate (NAE), and Mangun Jaya

Estate (MJE)

1.4 Locations of Mill, Plantations and Area Statement

1.4.1 Location of Mill

Name of Mill Location

GPS

Latitude Longitude

Rantau Panjang

Estate

Village of Rantau Panjang, Sub District

Babat Toman, District of Musi Banyuasin,

Province of South Sumatera

20 51' 3.28" - 20 57' 0.61" S 1030 42' 9.95" - 1030 47'

17.02"E

Bumi Ayu Estate Village of Bumi Ayu, Sub District of Babat

Toman, District of Musi Banyuasin,


20 50' 35.35" - 20 55' 2.39"

S

1030 38' 16.79" - 1030

42' 25.42"E

Karang Ringin Estate Village of Karang Ringin II, Sub district of 20 46' 2.88" - 20 49' 46.84" 1030 35' 53.18" - 1030

mailto:[email protected]

http://www.simedarby.com/


ASSESSMENT REPORT

SPO – 4006a.5 Page | 4




S 39' 21.38"E

Napal Estate Village of Napal, Sub District of Babat

Toman, District of Musi Banyuasin,


20 49' 25.41" - 20 52' 27.88"

S

1030 37' 36.33" - 1030

41' 16.48"E

Mangun Jaya Estate Village of Mangun Jaya, Sub District of



20 48' 55.6" - 20 53' 54.65"

S

1030 33' 21.96" - 1030

38' 10.54"E

1.4.2 Location of Supply Base

Name of Supply Base Location

GPS

Latitude Longitude

Rantau Panjang

POM

Village of Rantau Panjang, District of



020 54’59” S

103044’52.17” E

1.4.3 Tenure

Private

State 10,139.91 ha (HGU Certificate No. 664/2003, 552/2003) 1,569.16 ha (HGU in the application process to BPN: Letter No. 122/GPI/UM/PSD/VI/2011, and 123/GPI/UM/PSD/VI/2011) 1,843 ha (HGU Application process to BPN: Letters No. 004/GPI/UM/PSD/II/10) Total Size of Land Use Permit and Land Use Permit in process = 13,552.91 ha. The reserve area is 531.24 ha include location permit’s area

Community

1.4.7 Area Statement

Total area 13,961.355 Ha

Mature area 9,954.950 Ha

Immature area 119.120 Ha

Mill 12.880 Ha

Emplashment 48.030 Ha

Infrastructure (Road, Bridge and Drainage) 293.900 Ha

Nursery 0 Ha

Occupation 2,790.870 Ha

Enclave 45.79 Ha

HCV/ Conservation area (Hills, Valleys and swamps) 164.60 Ha

Others (reserve area) 531.240 Ha

1.5 Description of Supply Base

1.5.1 Description of Mill


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SPO – 4006a.5 Page | 5


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 (%)

Rantau Panjang 80 183,684.02 39,683.60 21.66 9,129.20 4.98 - -

*Source Monthly Summary of Sustainable EFB, CPO & PK on 2012

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)

%

Rantau Panjang Estate 3,534.79 2,857.21 55.299,42 19.35 51.802,66 93,68

Bumi Ayu Estate 2,960.98 2,226.02 42.917,06 19.28 39.205,43 91,35

Karang Ringin Estate 3,321.99 1,687.32 35.280,82 20.91 31.590,37 89,54

Napal Estate 2,586.14 1,822.23 26.698,20 14.65 22.514,01 84,33

Mangun Jaya Estate 1,557.47 1,481.29 23.043,46 15.56 20.325,84 88,20

Total 13,961.38 10,074.07 183.138,96 18.18 165.438,31 -

* Source : Production realisation Jan – Dec 2012 dan TBS Receipt Data on Jan- Dec 2012.

1.5.3 Smallholder(s) and other source

Name of

source(s) Member(s) Location

Total Area (Ha)

FFB (tonnes/year)

Supplied to Mill

FFB (tonnes/year)

%

Sungai Pinang Estate

- PT. Bina Sains Cemerlang, Kab. Musirawas, Sumatera-Selatan

- - 5.021,05 -

Bukit Pinang Estate

- PT. Bina Sains Cemerlang, Kab. Musirawas, Sumatera-Selatan

- - 3.927,41 -

Ladang Panjang Estate

- PT. Bahari Gembira Ria, Kab. Muaro Jambi, Jambi

- - 5.305,78 -

KKPA – SJE 262

Kec. Sungai Keruh dan Sekayu, Kab. MUBA, Sumatera Selatan.

6.000 3.951,95 3.951,95 -

Total 18.206,19

*Source TBS Receipt Data on Jan- Dec 2012

1.5.4 Product categories FFB/CPO/PK/PKO

1.6 Dates of Plantings and Cycles

1.6.1 Age profile of planted palms*

Planting Year Hectarage (Ha) Age (year)

1998 2,484.96 13

1999 3,276.36 12

2000 1,978.57 11

2001 877.62 10


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SPO – 4006a.5 Page | 6


2002 517.26 9

2003 180.55 8

2004 132.11 7

2005 168.13 6

2007 153.41 5

2008 185.98 4

2010 29.25 3

2011 89.87 2

TOTAL 10,074.07

1.6.2 New Planting area after November 2007 305.100 Ha

1.6.3 Planting Cycle 1s tCycle 25 Years

1.7 Approximate Tonnage Certified

1.7.1 Past Annual Claim Certified Product

FFB Production - Tonnes/year

CPO Production - Tonnes/year

Palm Kernel (PK) Production - Tonnes/year

Palm Kernel Oil (PKO) Production - Tonnes/year

1.7.2 Claim Certified Tonnage of FFB

Name of Estate(s)

Total Area (Ha)

Planted Area (Ha)

FFB (tonnes/year)

Yield (tonnes/ha/year)

Rantau Panjang Estate 3,534.79 2,857.21 64,287.16 22.50

Bumi Ayu Estate 2,960.98 2,226.02 50,086.19 22.50

Karang Ringin Estate 3,321.99 1,687.32 41,000.18 24.30

Napal Estate 2,586.14 1,822.23 36,277.42 19.91

Mangun Jaya Estate 1,557.47 1,481.29 27,243.59 18.39

TOTAL 13,961.38 10,074.07 218,894.53 21.73

Source: Data of TBS Budget 2012/2013

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 (%)

Rantau Panjang 80 223,338 51,368 23 11,167 5 - -

Source: Data of TBS Budget 2012/2013

1.8 Other Certifications

1.8.1 ISO 9001:2008/ISO 14001: 2004 -

1.8.2 OHSAS 18001:2007 -

1.8.3 HACCP -


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1.8.4 Others -

1.9 Time Bound Plan for Other Management Units MINAMAS Plantation-SIME DARBY Group committed to prepare a time bound plan for all of other management units in order to adopt the P&C standard or to obtain RSPO certificate. And the audit team has considered it accordance to the RSPO Certification System documents – June 2007 for Partial Certification. Progress and follow up of the plan will be verified and reported on annual routine visit.

Certification Status Number of Strategic

Operating Units (SOUs)

Remark/Details

Malaysia Indonesia

Certified 33 14 Certified until December 2011

EB Review 6 5 It has been reviewed by Executive Board RSPO

Audited 0 5 3rd party audit or external audit completed on

July 2011.

Total SOUs 39 24

Management Unit

Address Hectarage

(Ha) *) Time Bound

Plan Status

PT. Indoturba Tengah Kab. Seruyan dan Kotawaringin Barat – Kalimantan Tengah

7.734,60 2010

Certified

PT. Tunggal Mitra Plantations

Kab. Rokan Hilir – Riau 13.836,00 2010 Certified

PT. Aneka Inti Persada Kab. Kotamadya Pekanbaru dan Siak – Riau 11.134,00 2011 Certified

PT. Bina Sains Cemerlang

Kab. Musi Rawas – Sumatera Selatan 6.513,00 2012 Certified

PT. Kridatama Lancar Kab. Seruyan dan Kotawaringin Timur – Kalimantan Tengah

14.779,92 2011 Certified

PT. Teguh Sempurna Kab. Seruyan dan Kotawaringin Timur – Kalimantan Tengah

16.601,66 2011 Certified

PT. Lahan Tani Sakti Kab. Rokan Hilir – Riau 3.759,02 2011 Certified

PT. Bhumireksa Nusa Sejati

Kab. Indra Giri Hilir – Riau 25.662,00 2011 Certified

PT. Sajang Heulang Kab. Tanah Bumbu – Kalimantan Selatan

7.794,00 2011 Certified

PT. Ladangrumpun Suburabadi

Kab. Tanah Bumbu – Kalimantan Selatan 6.077,00 2011 Certified

PT. Bersama Sejahtera Sakti

Kab. Kotabaru – Kalimantan selatan 12.704,54 2011 Certified

PT. Bahari Gembira Ria Kab. Muaro Jambi – Jambi 1.202,04 2012 Certified

PT. Langgeng Muaramakmur

Kab. Kotabaru – Kalimantan Selatan 16.361,77 2012 Certified

PT. Guthrie Pecconina Indonesia

Kab. Kotabaru – Kalimantan Selatan 14.892,00 2012 Certified

PT. Swadaya Andika Kab. Kotabaru – Kalimantan Selatan 10.361,18 2012 Certified

PT. Laguna Mandiri Kab. Kotabaru – Kalimantan Selatan 15.299,80 2011 Certified

PT. Tamaco Graha Krida Kab. Morowali – Sulawesi Tengah

4.145,00 2012 Certified


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PT Sandika Natapalma / PT. Budidaya Agrolestari

Kab. Ketapang – Kalimantan Barat 1.002,21 8, 406.21

2011 audit

PT. Mitra Austral Sejahtera

Kab. Sanggau – Kalimantan Barat 8.741,29 2013 Review by RSPO

PT. Padang Palma Permai / PT. Perusahaan Sri Kuala/ Perkasa Subur Sakti (PKS Blang Simpo)

Kab. Aceh Tamiang dan Aceh Timur-Aceh 6.451,99/ 1.128,906

2011 Audit

PT. Guthrie Pecconina Indonesia

District of Musi Banyuasin – Sumatera Selatan 10.139,91 2012 Certified


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2.0 ASSESSMENT PROCESS

2.1 Certification Body

PT Mutuagung Lestari

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

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

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

2.2 Assessment Team

2.2.1 Lead Assessor and Assessment Team

S-1 1. Deni A. Novendi (Lead Auditor). Bachelor of Forest. Natural Resources conservation department special in ecology and social. He involved in study of social economy of Citanduy-Cisanggarung watershed, Ciamis district, and East java. And also have experience within 13 years in forest planning and conservation on forest concession at Indonesia. Since 2003, he worked for independent certification body as auditor for forest sustainable certification (FSC and LEI scheme); Chain of study, ISO 9001 and RSPO. He audited for several companies. In Surveillance, he focused on environmental aspects, legality, land dispute, social and Plantation Management.

2. Marsudi Eko Santoso (Auditor). Bachelor of Agriculture, Agro technology department. He attended in training of Management system ISO 9001-2008 and Roundtable sustainable palm oil lead auditor. And also he involved in several companies for RSPO assessment. Now, he works in independent certification body. In surveillance 1, he focused on verifying the best practices, manpower aspect, Occupational Safety and Health.

3. Bukti Bagja (Auditor). Indonesian citizen, Master of Science in the field of Environmental Sciences, University of Indonesia. Training he has followed are: awarness of RSPO certification system. He has followed several activities GAP Analysis of the RSPO Principles and Criteria implementation in several oil palm plantations in Indonesia as assessor. Besides that he is also involved in several assessments HCV / HCV as an assessor with the specifications in the field of GIS (mapping). He has expertise in mapping such as ArcGIS, MapInfo, Global Mapper, ER Mapper, Erdas Imagine. In this activity, he has assessed for environment aspect, land conservation, water conservation and management of waste.

4. Rudi Ramdani (Auditor). Bachelor of Agriculture, Department of Agriculture. Program Agronomy, Faculty of Agriculture, Bogor Agricultural University. He has experience working as an Operations Staff plantation; work experience in corporate finance and has assessed the RSPO and ISPO. Training that have is the Awareness RSPO for Auditor; ISPO Auditor Training and ISO 9001 QUALITY. At 1 RSPO Surveillance activities this time observation assessment on the technical aspects of cultivation.

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 : 4 auditor Number of days for S-1 at site : 5 days Number of working days for S-1 at site : 20 Working days Number of working days for S-1 at Head Office : 2 Working days

2.3.2 Detail process of assessment

S-1 The assessment was conducted by measuring the sufficiency of implementation with the consistency done by the PT Guthrie Pecconina Indonesia to 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

http://www.mutucertification.com/

mailto:[email protected]


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SPO – 4006a.5 Page | 10


information; and (3) field observation, aiming to observe directly the sufficiency of implementation on site. Some opportunities for improvement of the results S-1 delivered by the auditor MAL to the management unit and the results are the subject will be verified at the next assessment phase (S-2). Improvement of findings from main assesment findings were observed by auditors at this S-1 assessment. All information obtained was recorded in Check List of PT Mutuagung Lestari (MUTU) and part of S-1. The assessment program please find Appendix 2

2.3.3 Locations of Assessment

S-1 Location has visited by team auditors, as follow : 1. Manpower and transmigration Agency, Musi Banyuasin District : Interview with head of emplacement and

development trasmigration related to over land tenure II from trasmigran Sungai Medak village and Air Putih Ulu village to PT GPI

2. Environtment Bodies and ResearchDevelopment, Musi Banyuain District : interview with the authorities regarding the management / handling of hazardous waste.

3. Sungai Medak village : interview with community leaders (Mr Eded and Mr. Herman) related to process of land tenure II to PT GPI, the presence of PT GPI for community and local wisdom

4. Air Putih Ulu village : interview with community leader (Mr Iwan) related to process of land tenure II to PT GPI, traditional existence and local wisdom

5. IPAL Rantau Panjang Mill : Observation and interview with mill staffs related to handling, using and controlling of waste water treatment plant (IPAL)

6. Process room in Rantau Panjang Mill : Observation and interview with mill staffs related to FFB Processing and implementation of occupational health & safety management system in mill

7. Hazardous waste warehouse in Rantau Panjang Mill : Observation and interview with mill staffs related with facilities, infrastructure and handling of hazardous waste.

8. Land Aplication in hazardous waste warehouse: Observation site suitability for effluent applications and interviews with estate staff related to management and utilization of effluent from IPAL

9. Blok E14 Rantau Panjang Estate (RJE) : Observation of existence and maintenance boundary markers No.10 on ex Land II Sungai Medak Village.

10. Clinik Rantau Panjang Estate (RJE) : Observation and interview with paramedics related to health facilities, periodic inspection and clinical waste management

11. Blok G14 Rantau Panjang Estate (RJE) : observation of existence and maintenance boundary markers No 7 Rantau Panjang estate

12. Blok D004 Karang Ringin Estates (KRE) : Observations and interviews with the Estate Manager related to peat areas are planted and water gate / water management, monitoring water level of peat soil surface, and embankments to retaining water.

13. Blok D013 Division 1 Karang Ringin Estates (KRE) : Observation main road maintenance activities such as drainage maintenance and scrapping the road using beckhoe loaders and graders.

14. Blok D014 and D22 Karang Ringin Estate (KRE) : Observations and interviews with Assistant estate, foreman IPM, and workers related to program and realization of Integrated Pest Management (IPM) include benificial Plant, Owl Monitoring, Pests Monitoring and IPM training.

15. Blok D022 Karang Ringin Estate (KRE) : Observations harvesting activities. Interviews with workers and supervisors regarding crop technique, laying palm sheat, use of personal protective equipment, safety training, wages, rules and insurance.

16. Office and Warehouse in Karang Ringin Coral Estate (KRE): Observation availability of fire fighting facilities and canopy diesel tank.

17. Blok C007 Napal Estate (NAE) : Observation and interviews with foremen and harvesting workers related to crop technique, use of personal protective equipment, wages, premium harvest, fines for raw fruit and left fruit, harvest quality, SPSI dues, employee grievance through SPSI, risk and handling work accidents.

18. Blok C014 Napal Estate (NAE) : Observation existence Turnera subulata.and Antigonon leptosus


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19. Spray Equipment Storage In Napal Estate (NAE): Observations of wash spray equipment, spray equipment storage, a place to wash up after spray, handling of waste water used for reuse and step of spray.Baby Care Centers in Napal Estate (NAE): Observations and interviews with babysitters related to facilities, the baby are older than 2 years, first aid emergency and the training in use it, and wages.

20. Central Empacement Napal (NAE): Observation and interview with worker’s wife related to facilities, handling emergencies, domestic waste management, water facilities such as boreholes, complaint if there is damage and facilities for worship (mosques).

21. Land fill in Napal Estate (NAE): Observations and interviews with NAE assistant related to Landfills end (waste management).

22. Central Warehouse Napal Estate (NAE): Observation and interview with warehouse chief related to health inspection, hazardous waste warehouse, MSDS, existence and stock of personal protective equipment.

23. Fire Fighting Secretariat Napal Estate (NAE): Observations and interviews with firemen leaders related to training,fire fighting facilities and the condition .

24. Medang river & Medak river Rantau Panjang (RJE): Observations and interviews with Estate Manager related to riparian area is conserved as HCV 4.1 that are Medang river & Medak river.

25. Latas river & Mampo river Napal Estate (NAE): Observations and interviews with Estate Manager related to riparian area is conserved as HCV 4.1 that are Medang river & Medak river.

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 Guthrie Pecconina Indonesia 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 PT Guthrie Pecconina Indonesia

2.4.2 List of stakeholder contacted

Please find appendix 3

2.5 Determining Next Visiting

The next visit (S-2 ) will be determined one year after this S-1 (February- 2013).


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3.0. ASSESSMENT RESULT

3.1. Summary of Assessment Report of the RSPO Certification

MUTUAGUNG LESTARI has conducted an assessment of PT Guthrie Pecconina Indonesia – Rantau Panjang POM, operation consisting of one (1) mill and 5 (five) oil palm estates. During the assessment, there were one (1) Nonconformities were assigned against Major Compliance Indicator(s) and four (4) opportunity(s) for improvement were identified. Further explanation of the non-conformities raised and corrective actions taken by the company are provided in section 3.5. The company has already prepared and implemented the corrective action(s) that had been reviewed and accepted by Auditor(s) in form of documentation evidence(s) e.g. (document record/photographic) Those corrective action(s) taken that consist of one (1) Major non-conformity(s) had been closed out shall be verified during next assessment.

MUTUAGUNG LESTARI found that PT Guthrie Pecconina Indonesia – Rantau Panjang POM , MINAMAS Plantation -

SIME DARBY Group, complied with the requirements of RSPO Principles & Criteria and National Interpretation, RSPO

Principles and Criteria (P&C) for Sustainable Palm Oil Production, Republic of Indonesia - RSPO INA-NIWG, May 2008

and/or Scheme Smallholders, October 2009*) .

Therefore MUTUAGUNG LESTARI Recommends RSPO Certification of compliance is Continued

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.

Company have information records from stakeholders and also the responses. Those records are available for each estates include mill in form of internal Log book that describes date, name/institution, parties encountered, completion date, status, description. Example letter from related parties are :

1. Based on verification of information request book (internal letter), there is no information request from stakeholders. The incoming letter is about complaint and request for assistance. For example : request for fence and gate for Napal village ((Maqodomin Amin Mosque) dated May 18, 2011 has responsed on May 18, 2012 with the aid of cement.

2. Rantau Panjang estate (RJE): Inquiry from BPS No.05330.006 dated January 5, 2012 information request about the electricity generated by the company. No later than May 2012 has responded with sen Data calculation Electricity Summary in 2011. Provided delivery receipt to Statistics Directorate of Mines and Energy, Directorate of Industrial Statistics BPS Jl. Dr. Sutomo No. 6-8 Jakarta.

Validity period and extermination records (requests and responses) describe in SOP of record control, PT. Guthrie Pecconina Indonesia Minamas Platantion. It arranged based rne need and tne nature as follow :

a. Need for audit examination / assessment for 2 years; b. Reference needs for 10 years; c. Legal / governmental legislation until there is a revisions d. Customer demand for 1 year; e. Company policy until there is a revision;


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f. Records of land compensation, not limited. At the end of limit time, the authorized personal will review expiry and if necessary give recommendations method to extermination records or stored in warehouses. Extermination or storage methods are suggested to the authorities in each department. Based on document review is known that the company still keep the records and responses in accordance with storage time limit. For example log book for incoming letter is available for period 2011 - 2013, records of land compensation stored in division Plantation Services Department.

Status: Full Compliance

1.2 Management documents are publicly available, except where this is prevented by commercial confidentiality or where disclosure of information would result in negative environmental or social outcomes.

List information that can be accessed by stakeholders are available in SOP Information access right No SOP-008/GPI/2012 dated December 1, 2012 signed by Manager in appendix 2. It presents information that can access with manager approval such as : HGU, SIUP / IUP / SITU. permits, HCVA, SIA, effluent applications, documents of Occupational Safety and Health.


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 shown compliance with applicable regulations both locally and nationally, namely: 1. Legal tenure of land in accordance with with UU No. 5 year 1960 about Agrarian Principles, namely the HGU

Certificate No. 664/2003, 552/2003 for an area of 10139.91 ha. 2. Provide social security, in the form of JAMOSTEK in accordance with UU No.. 3 of 1992. 3. Provide equipment Occupational Safety and Health program for all employees in accordance with Law No.. 1

1970. 4. Document for environmental management (RKL / RPL) and has been endorsed by the Ministry of Agriculture in

accordance with Law No.. 23, 1997. 5. Not clearing land by burning in accordance with Law No.. 18 of 2004. 6. Not discriminate against employees in accordance with Law No.. 21 years 1999 - ratification of the ILO in form

of COLLECTIVE LABOUR AGREEMENT 7. Hazardous waste permit in accordance with the PP. 18 in 2009. 8. Allocate some areas that protected as high conservation area in accordance with Presidential Decree No. 32

in accordance with 1990 and UU no. 41 in accordance with 1999 about Forestry. 9. Controlling subsidence of peat soils through water level setting in accordance with Government Regulation No.

150 year 2000 about land damage control to biomass production Related compliance to legal tenure, environment and social management, labour protection and reports to institutions (e.g. Environment bodies, government district and plantation adn forestry agency, Musi Banyuasin district) stated PT GPI obedient and consistent with the rules There is evidence of regulations updating (updating) li in matrix 'Evaluation of Regulatory Compliance'. It shows adjustments to the regulations, for example:

1. Adjustment of employees wages refers to Governor of South Sumatra province Decree No.. 825/KPTS/DISNAKERTRANS/2011 about Sectoral Minimum Wage for 2012, the agricultural sector minimum wage is Rp. 1,256,175 and company sets the lowest wage Rp. 1.38,945.

2. Development of riparian buffer zone refers to the UU. 41 of 1999 on Forestry, associated with the regulation in


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Article 3 "Improving Capability of Watershed", the company has implemented with following activities: (1) Program and the realization bufferzone in November to December 2010 and February to May 2011; (2 ) Develop Buffer Zone rehabilitation program in 2011/2012, to mark buffer zone border, signboard and socialization to local community.

3. Monitoring of peat soil subsidence refer to Government Regulation No.. 150 year 2000 about land damage control for biomass production and Permentan No.. 14 of 2009 about the use of peat land for oil palm plantation.

4. Personal protective equipment for workers in accordance with Permenaker No.. 8 year 2010. 5. Application of occupational health & safety system refers to the PP. 50 in 2012.

Companies have a mechanism to evaluate the rules and regulations that presented in matrix 'Evaluation of Regulatory Compliance' that contains information about legal requirements,law requirements, compliance indicators, compliance status, and information indicating material compliance .


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

Evidence of land tenure show in HGU certificate No. 8 year 2003 covering of 10,139.91 ha. In addition, there is also 3,412.91 Ha in HGU process to national land agency (BPN) Regional Office of South Sumatra and was still waiting for establishment Committee B to conduct a study, The.detail as follow :

Letterr No. 122/GPI/UM/PSD/VI/2011 and 123/GPI/UM/PSD/VI/2011, the measurement area requested for 667.49 Ha and 901.69 Ha

letter No. 004/GPI/UM/PSD/II/10 April 5, 2010, the requested area of 1,843 ha located in Babatoman village

The total areaPT GPI is 13,552.82 ha. It does not compile with the land tenure areas in the document Area Statement year 2012-2013 (13,961.34 ha), so there is a difference, data HGU is lower than the 408.52 ha compare with scope area in the Statement Area - CAR.2013.01. Observation on February 13, 2013. Director of Legal (Head Office, Jakarta) stated that areal statement PT GPI is 16,361.34 Ha contain of 13,961.34 Ha (based on Exsa International measurement) and 2,400 ha SJE area (Core of KKPA), while the GPI area according to HGU certificates is 10,139.91 Ha contain of HGU in the process of 1,843.73 Ha and 1,417.99 Ha. President Director of GPI explained that the difference is due to differences of measurement results between PT. Exsa International (consultant) with BPN (National Land Agency).

Observation on Apri 2 , 2013. Company shown the evidence of progress HGU application such as Map of Land from National Land Agency, South Sumatra Province. No. 36/MB/2009 scale of 1:10,000 dated December 15, 2009 with an area of 988.68 Ha and Map of land No. 37/MUBA/2009 scale of 1:10,000 for mapping an area 814.99 Ha, 15.36Ha, 13.09 Ha and 11.61 Ha (total 855.05 Ha) so the total area has been measured by the BPN is 1,843.73 Ha. Observation on April 14, 2013 There is also evidence of HGU submission progress for area 1,569.16 hectares, as follow :

The Letter with Number: 123/GPI/UM/PSD/VI/11 about land roving measurement application for area 667.49 ha and Number: 122/GPI/UM/PSD/VI/11 about cadastral measurement application for area 901.69 Ha.

Response from BPN related cadastral measurement application are deposite warrant letter No. 15/SPS/2011 about the cost of measurement for area 667.49 ha and Deposit Warrant No.14/SPS/2011 about the cost of measurement for area of 667.49 ha.

Letter of measurements of charge transfer request for HGU GPI area covering 1,569.18 HA based on GM PSD memorandum No. 057/GPI/PSD.JKT/09.11.

The Company has documents of fixing the boundaries for HGU area covering 1,569.16 hectares (No. 2630/6.16/VIII/2011 and 2631/6.16/VIII/2011).

Based on observations, CAR 2013.01 is declared to Closed With Observation.


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Plantation Business Permit Approval from the Minister of Agriculture of the Republic of Indonesia is available . Decree No. HK.350/E5.531/07.95 dated July 25, 1995. For an area of 60,000 ha integrated with Palm Oil mill as 5 units with each capacity 60 tons FFB / hour. There is also regostration letter for Plantation Business Permit No. 092/GPI/UM/PSD/IV/2012 dated 25 April 2012 for an area of 13553.63 ha. Boundary markers found in good condition. It restrictive between HGU definitive area and HGU proposed area (ex Land II Transmigration Sungai Medak Village), the entire boundary markers which be sample found, namely: No. Pal. 10 in Block E 14 RJE; Pal No.. 7 in Block G14 RJE; Pal No. 56 in Block F 14 RJE. Based on the statement area 2012-2013 signed by GM Plantation, SGM POD Sumatra, Head Plantation Operations, and Head Plantation Upstream land on 31/08/2012 - Identified occupied area of 3322.07 ha spread across RJE (424.88 ha ), BYE (658.20 ha), NE (705.86 ha), KRE (1495.41 ha), MJE (37.70 ha), SJE (00). The identified Areas declared as occupied land are small farming belong to community and small villages (talang). Map of re-inventory results of the occupied areas has been shown (Road and Block Map). PSD staff explained that the entire occupied area was in the re-inventory process to ensure broad and ownership status. PT GPI will conduct compensation agreement to the owners who willing to be compensated, or do enclave to not willing.

Status: See CAR No. 2013.01 with Major Category (Closed with Observation)

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 information from community leaders in Sungai Medak village and Air Putih Ulu village, explained that there is no traditional rights in PT GPI. Pengemin is not traditional management system. Based on documents review and observation, khown that information board in riparian that dominated by pengemin has listed Perda No 18 year 2005. Thus Noncompliance CAR 2011.33 stated Closed


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.

Company has a budget presentation document 2012/2013 and Projection 2014-2016 for each estate, desribe as follow :

Projection plantation activities include Areal statement, production estimates, yield estimates, (mature and Immature Plants), other areas (nursery, mill, emplacement, road , bridge and ditch) reserve land clearing area, backup plan land clearing area, occupational enclaves.

Non-plant costs include roads, bridges, Building site, Admin Costs including ESH, Labor Costs.

Plant costs (Mature and immature plants, land preparation, water management, planting, fertilizing, sanitation, weeding, census, land conservation), harvesting and transport.

The company also has a budget presentation document 2012/2013 and Projection 2013-2015 fo Factory that descibe FFB entered, Extraction Rate (CPO and Kernel), Production (CPO and PK), maximum capacity and Stock Palm Product. Audit financial statements is available. It show the feasibility of business (Liabilities 63.80% and Profit 64% from the previous year) for period July 2011 - June 2012. It was held on 10 September 2012 by Public Accountant Tanudiredja, Wibisana and Partners (License No. KEP-151/KM.1/2010) Company does not have replanting plan becouse the oldest palm trees planted in 1998 (age of the plant is 15 years), so the actual replanting is in next 5 to 10 years. In SOP Agricultural Reference Manual section 3 (replanting) mentioned that replanting criteria are a) the age of plant more than 20 years and an average production for a year is less than 20 T/


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ha and/or the average height of plants over 15.1 meters b).plantation is more than 25 years and an average production for a year is less than 18 T / ha and / or have an average height of 15.1 meters. Based on these criteria, condition of GPI plantation does not apply because the palm oil plant’s age was 13 years.


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

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

The company have SOP for estate : Standard Operation Procedure Minamas Plantation Indonesia, agronomy Manual Reference. No: 110/EST-ARM/08 approved by CEO, GM Legal and Corporate, Controller MRC, HPO, Senior GM, GM Region Area on August 19, 2008. It describe in part 1 operational standards for Planting material, part 2 nursery technique, part 3 replanting, part 4 land preparation, part 5 plant population (planting density), part 6 maturity age, part 7 field upkeep, part 8 manuring, part 9 canopy management, part 10 water management in coastal / peat soil, part 11 ablation, part 12 Standards of maturity, part 13 harvesting interval,part 14 loose fruit collection, part 15 plant protection. Copy No.. 30/11/08 and distribution Date December 22, 2008. The company shown mill technical guidelines Minamas Plantation. Part I - No: 110/POD-FAC/07 and part II. No 120/POD-FAC/07. It had known by Rusli Ujang; Group head plantation Indonesia describe the basics of palm oil processing. Company also has the mill technical guidelines for Administrative Procedure Minamas Plantation and SOP Product Traceability. Operational inspection of mill and estates conducted and reported regularly at least 1 year by Plantation Advisor and Mill Advisor in the form of Plantation Advisory visits reports in every estate and Mill Rantau Panjang. The report discusses the activities of maintenance, weeds, roads, pruning, organic and inorganic fertilization, harvest and transport, crop rotation, water management, plant diseases pest control (mice and caterpillars), while for mill are non comformance, Mill Up Keep, Production Efficiency, Production cost, maintenance system. For example: Plantation Advisory Rantau Panjang estate period of January untilin June 2012, date visit 17-19 September 2011; Mill Visit Report (Minamas/RPF/02/11-12), date visit October 12, 2012. Record of mill operations every month are recorded in RPF Monthly Report were reported every month. For example monthy Report RPF December 2012 includes: Production statistics; Production Capacity; Ekstraction Rate; Quality; Data Acceptance; Statistics Production and Extraction in December 2012; Daily Production; Quality Production; Production Losses Against FFB; Mill Procost and management comments related the things couse not apropriate with target . Record of estate operations are recorded in estate unit report(RJE, MJE, BYE, NAE and KRE), the last periode is December 2012 Example: Unit Report of RJE and NAE in December 2012. The report describe Areal Statement; Structure; Personnel and Residents. For maintain soil fertility, PT. GPI has conducted land surveys, soil and leaf analysis at regular intervals. Semi-detailed for soil survey carried out by Param Agricultural Soil Survey in November 2008. Soil analysis conducted every 5 years, while leaf analysis conducted every year. All records is available Record for maintain soil fertility practices is available, such as palm oil fertilizer documents period July 2012-June 2013 which showed that fertilization done based on leaf and soil analysis, EFB evaluation documents show applicationof empty fruit bunch, documents of effluent mill applications in land application and so forth.


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


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Semi-Detailed Survey documents from Param Agricultural Soil Survey period November 2008 is available. Based on the document concluded that marginal land located at PT. GPI area of 1,180.3 ha is peat soil with types of Erong (PPT version, 1983: sapric Organosol), Gali (Hemic Organosol, Gondang (Hemic Organosol). Soil Analysis conducted every 5 years and leaf analysis every year. Leaf analysis in 2012 was conducted in June-August 2012, for example:

1. Rantau panjang Estate (RPE) leaf sampling was completed on June 26, 2012, and the results known in leaf analysis on July 11, 2012 are Re-Block A001/Eks Block C13; broad = 26.58 Ha; Planting Year = 2000; soil type: Mineral (% On Dry Matter): Ash = 8.67, N = 2.72, P = 0.158; K 0.878; Mg = 0.236; Ca = 0.652; B = 15.

2. Karang Ringin Estate (KRE) leaf sampling was completed on August 10, 2012, and the results known in leaf analysis on September 12, 2012 are Re-Block D022/Eks Block R56; Area = 42.04 Ha; Planting Year = 2000; soil type: peat; (% On Dry Matter): Ash = 8.69, N = 2.77, P = 0163; K = 0.82; Mg = 0.223; Ca = 0.446; (PPM On Dry Matter ): Fe = 95.871; Cu = 12.398; Zn = 14.541; B = 18.7.

Company can show recording activities to improve soil fertility, as follow: 1. Fertilization based on soil and leaf analysis, as indicated by oil palm fertilizer documents period July 2012-June

2013 for entire Estate in PT. GPI which contains information about the block, planting year, the principal amount, wide each block, frequency of application, type of fertilizer applied (NK Blend, RP, Kieserite, HGFB). Example, for Napal Estate period July 2012, planned fertilization program covering 1822.23 ha much as 24 tons, then realized in July 2012 were 24 tons covering 1822.23 ha. Progress fertilizer evaluation specificly describe comparison between target and achievement of fertilization each month that contain in each estate operational documents / manager report.

2. Applications EFB as evidenced by EFB evaluation documents. Example, Napal estate period 2011-2012 for blocks L28, N28, O28, P28, N33 with note that neprolephis has grown in those block. It has applied as much Ha 5822.250 kg covering an area of 158.98 Ha. There are also documents of EFB application in Napal Estate period 2012-2013 as much 2092.300 kg covering an area of 56.55 Ha.

3. Regular monitoring of distribution effluents to land in RKL / RPL year 2012.


4.3 Practices minimize and control erosion and degradation of soils.

Soil maps from semi-detailed soil survey by Param Agricultural Soil Surveys with 1:100,000 scale is available. Based on the map, identified marginal land. PT. GPI uses the maps conducted in 2008 that shows in the area contain peat soil 1,180.03 ha in 3 estate: RJE (179.6 ha), BYE (59.9 ha), KRE (940.8 ha) which classified as marginal land. For the peat soil, PT. GPI have procedures / technical guidance through SOP soil conservation and Water Conservation in the SOP Agronomic Practices - Minamas Plantation were arranged in 2004. The documents control step of land and water conservation on a particular slope and the facilities and infrastructure to prevent erosion, creating -ditch drainage and maintenance, ditch isolation, and maintenance of waterways. PT. GPI use vizometer to monitor water level in peat land periodically. In field, there have 40 units measurements with standard 1 piece vizometer to 25 ha based on ARM. For example measurement results october 2012 in peg no 32, block R.60 = 0.8 cm; peg no 1, block P55 = 0.3 cm. The effort to measure water level and depth of peat land, Noncompliance CAR-2011.05 stated closed. PT. GPI have program and realization of road Maintenance, as indicated by SM report period July to December 2012, which informs the length and the type of road (MR & CR), the realization of improved roads, etc.. Marginal land management strategy has been prepared in the following documents 1) User management of peatlands in the SOP Agronomic Practices 2004 Oil Palm Agronomy Division, which describe land management, include peatlands are regarded as marginal land 2) Semi-detailed soil survey in November 2008 by Param Agricultural soil Surveys (M) SDN. BHD. The document


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contain soil types, Soil Management and Slope Class and land management recommendations.


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

Type of surface water resources in areal PT. GPI are river and peat lands. It protected by determine riaparian belt, plant cultivation for retaining erosion, water quality monitoring, water wells monitoring that used by employees, and groundwater monitoring in Land Application. Peat land management conducted by monitoring the water level, the depth of peat, and water arrangements with develop canals and water gates. In general, the record of water resource protection activities is available, that are :

Letter to determine riparian area as 50 m for small river and 100m for large rirer

Document of riparian protectionproram

Monitoring results of signboard condition report every month,

Protection socialization to spraying workers

Water quality monitoring periodically (every 6 months in the area upstream and downstream)

Peat depth survey,

Water level monitoring

Protection fountains as +56 ha

Water quality testing periodically Specifically for efflluent aplication to land, is aim to improve land fertility , PT. GPI have permits from local government and conducted water quality monitoring of effluent for land application periodically every six months. Based on the documents, PT. GPI has monitored water usage for processing FFB in Rantau Panjang mill. From these data were known, generally the realization water usage still above the estimated budget. The high water consumption due to transport of water to emplacement during the dry season, leaks in boiler valve, and usage in the hydrocyclone.


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

GPI have SOP Plant Protection (No.: 110/EST-ARM/08) associated with the Integrated Pest Management program include:

Control of horn beetle (Oryctes rhinoceros) in SOP Manual agronomic Practices (No. 9xx/PTK-HPT/2004)

Control of bag worms and caterpillars fire (No.: 110/EST-ARM/08 section 16.2), planting beneficial plants for natural pest control (No.: 110/EST-ARM/08 section 16.2.1)

Control of rats in palm oil (No.: 110/EST-ARM/08 section 16.3), Owls for pest control (No.: 110/EST-ARM/08 section 16.3.1)

There is also record of realization Integrated Pest Management Program for each estate that inform the plan and the realization planting beneficial plants in 2012, monitoring owl nest box and its effectiveness evaluation. For example, in Rantau Panjan estates :

Data of Beneficial plant nurseries: 2010 = Turnera subulata 4000, in 2011 Turnera subulata 3000, Cassia sp = 3000 : in 2012 = Cassia sp 1500, Turnera subulata 1000, Antigonon sp 30 : 2013 : Cassia sp 1500, Turnera subulata 1000, Antigonon sp 30

Actual planting of Beneficial plant : in 2011 Turnera subulata 3000, Cassia sp = 3000 : in 2012 = Turnera subulata 1000, Antigonon sp 1500.

Document nest boxes monitoring in 2012 as many as 40 gupon, puppies as 36.


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Pesticide Usage in each estate are available for one year periode. It describe matrix type of Pesticides, No. Registration, use of pesticides, the use of pesticides / ha, the total active ingredients used, tons FFB and Active Ingredients Ton / Tons TBS that informed about pesticides toxicity (active ingredient / ton FFB and Active ingredient / hectare). Example: Use of Pesticides in Rantau Panjang Estate are Starane 200 EC; Reg No. RI.854/7-2009/T; Active Ingredients Fluoroksipir; usage per hectare (0.02 L/ha); toxicity pesticides (Active ingredient / ha = 0.0039 L/ha and Active Ingredients / Ton TBS = 0.0000001 L/ton FFB).


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

The company has list of herbicides used in 2012. It contains 9 kinds of pesticides are Starane 200 EC (Flouroksipir), Audit 486 AS. (Glyphosate), Kenlon 480 AS (Triclopyr butoxy ethyl ester), Garlon 670 ES (Triclopyr butoxy ethyl ester), Metaprima (Metil metsulfuron), Dejavu 288 EC (Fluoroksipir), Trendy 20 WP (Methyl metsulfuron), Amiphosate 480 AS (Glyfosat), Metafuron 20 WP (Metil metsulfuron). Those herbicide do not contain active ingredients that prohibited type 1A and 1B WHO, and has registered at Ministry of Agriculture. There is a document of Herbicides usage in each estate that inform the active ingredient used, the range of applications, the amount of use per hectare, as well as dosage recommendations. There is no herbicide use morethan manufacture's recommendations. Example for rantau panjan estate (RJE) period 2011-2012 has used herbicides Starane 200 EC as much 0.020 liters / ha; Metaprima 20 WP 0.013 liters / ha. There is also available, the records of herbicides usage in documents of plans and realization in stacking chemis, circle of harvest road and TPH chemist periode 2011-2012 period in each estate that informed the type and amount of pesticide used and applied area. Personal (spraying team) involved in chemicals usage have received training. It is available documents of spraying team training for all estate in PT. GPI with material such as SOP Spray, use of PERSONAL protective equipment, HIRAC, road manners. Details training are :

1. Division III KRE: safety briefing for chemists employee in stacking on May 14, 2012 which was attended 12 participants.

2. Rantau Pnjang estate: safety briefing for BSS employee (Block spraying System) on 09 July 2012. 3. Bumi Ayu Estate: safety briefing for spraying team on October 15, 2012 which was attended 24 participants. 4. Mangun Jaya Estate: implementation of team building spraying on march 17, 2012 which was attended by 12

spraying workers and 14 foreman. Based on the mechanism of hazardous waste handling, waste of pesticide package storage in hazardous waste warehouse Rantau Panjang mill. Monitoring in and out of hazardous waste by hazardous waste balance that update every month based on actual data, include for waste pesticide package. Hazardous waste balance is reported regularly to BLH Musi Banyuasin (3 monthly). Company showhazardous waste balance for October - December and has been reported to BLH Musi Banyuasin on January 7, 2013 (available for delivery receipt). There are memorandum documents FROM Head Operation (number: POD-UM-127/X/2008, November 4, 2008) about recommendations to substitute active ingredients Paraquat Gramoxone in Minamas. Based on document review of herbicides usage lists in 2012, not found herbicide usage with paraquat as active ingredient. Based on field observations and documents review of recapitulation leaf caterpillar pests and pest rodents in 2012, there is no attack exceeds the threshold. Use of beneficial plant and owls gave effective results. PT. GPI has conducted regular health checks for workers, example:

Workers at high risk performed checks every 6 months that is estate workers (Spray, fertilizer, warehouses)


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and PKS (Process, Maintenance, Warehouse, heavy equipment operators and laboratory). Health Examination in RTF on June 29, 2012 by doctor and cooperate with Prodia clinic laboratorium that shows worker health inspection and recommendations.

Examination for Estate workers (blood pressure monitor, weight, health complaints, x-rays and blood) and for mill workers include (audiometry and spirometry), cooperate with Sekayu hospitals Medical examination at KRE for sparaying workers conducted in October 2012 and Employe fertilizing workers in September 2012

Company have Registry Book for treated employees, compiled by doctor, inform the registration of employees who treatment in clinic include the pregnance. As evidence that pregnant workers are not employed in area relating to chemicals, there are examples of documents :

Clinic statement letter No NAE/17/01/2013 treatment (Medical NAE: Susi Asmarani) dated January 17, 2013 on behalf of Susie, age 27 years (spraying teams) stated that she still breastfeeding 18-month-old son, so she was working on maintenance manual.

Recommendation to move spraying/fertilizing workers to manual area in the form of a letter from doctor Waluyo dated February 23, 2012 on behalf of Kartini (fertilizing / spraying worker) which move due to the maintenance manual because she was pregnant.


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

Companies shows occupational Health and Safety policies are approved by the Head Plantation Upstream Indonesia, in December 2011, states that Plantation Indonesia (Minamas Plantation) committed to providing and maintaining safe work environment and healthy by applying effective management to prevent accidents and unhealthy environment in the staff / employees, contractors and guests / visitors. The Policy also involved SPSI representatives (Mr. Kamali, chairman of SPSI Minamas). There is realization of occupational Health and Safety program and Environmental Protection in PT GPI, Periode July 2012 - June 2013 that are Inspection K3L (Daily), health checks (every 6 months), meeting K3L (3 months), check occupational Health and Safety Equipment (3month) and ESH Audit (6 months). The Company have health care in each estate conducted by a company doctor (Dr. Waluyo). There also P2K3 that has been endorsed by Head of Social, Manpower and transmigration agency, Musi Banyuasin;

1. P2K3 RJE (sesuai SK No. 07/SK-P2K3/DISIOSNAKERTRANS/III/2012) chairman Tomi Parikesit and secretary is Hasan Basri (No. 137/AK3/U/2006)

2. P2K3 RJF (sesuai SK No. 02/SK-P2K3/DISIOSNAKERTRANS/I/2012) chairman Paido Tua Tumanggor and secretary Eko purwanto (117/AK3/U/2006)

3. P2K3 MJE (sesuai SK No. 01/SK-P2K3/DISIOSNAKERTRANS/I/2012) chairman Widoyo and secretary Hasan Basri(No. 137/AK3/U/2006)

4. P2K3 KRE (sesuai SK No. 11/SK-P2K3/DISIOSNAKERTRANS/XI/2012) chairman Lili and secretary Hasan Basri (No. 137/AK3/U/2006)

5. P2K3 BYE (sesuai SK No. 02A/SK-P2K3/DISIOSNAKERTRANS/IV/2012) chairman Bambang Sulistyo and secretary Hendri PH Simatupang (Sertifikat Ahli K3 Umum No. 10.3957/AK3-U/DJPPK-P2K/III/2010).

6. P2K3 meetings conducted every 3 months, NAE last meeting on December 21, 2012 (attendance list and minutes of meetings are available), RJEE last meeting on December 17, 2012 (attendance list and minutes of meetings are available).

There are examples of labour social assurance (JAMSOSTEK) card on behalf of. Siran No. 11028739073. Based on documents review of details jamsostek Payment and employees list showed that all workers were participated in Social Assurance program. For example:

1. NAE; September 2012. No.NPP (4663) for 316 workers and Payroll data, there were 318 workers and 2


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workers have been out. Sent to Bank Mandiri Account 113.009.0001706 dated October 23, 2012. 2. RJE; September 2012. NPP (GG001968) for 514 workers and Payroll data, there were 517 employees and 3

workers have been out. Sent to Bank Mandiri. Account 113.009.0001706 dated October 17, 2012. 3. RJF; December 2012. No NPP (GG001968) for 137 workers and Payroll data in September 2012 there were

126 SKU workers and 11 contract employees. Sent to Bank Mandiri. Account 113.009.0001706 dated October 17, 2012.

Periodic checks for high-risk workers performed every 6 months for estate workers (Spraying, fertilizing, warehouses) and PKS (Process, Maintenance, Warehouse, heavy equipment operators and laboratory). Medical examination in RTF on June 29, 2012 by doctor and cooperate with the Prodia clinic laboratory, shows worker health inspection results and recommendations. Examination for workers in Estate include blood pressure monitor, weight, health complaints, x-rays and blood, cooperate with Sekayu hospitals while for mill workers include audiometry and spirometry. Medical examination in KRE, for fertilizing workers conducted in October 2012 and spraying workers in September 2012 Examples of medical examination on behalf Wiyono (spraying workers), the results examination of Sekayuq Hospital No 734/RS/MCU/XII/201, include Personal Data, complaint, medical history, family medical history, physical examination (height, weight, blood pressure, respiration and pulse, skin and hair, mucus membranes, fingers and nails) ; eye examination, ENT examination, thorax, abdomen extrimitas, and laboratory tests (hematology - CBC and Hematology - Calculate the cell type). On behalf of Sandro CH. Sirait. No Lab 1206290103, Patient ID 0224-1206.01298 results of audiometry (Normal), spirometry (normal), weight 61 kg and height 162 cm. Company have HIRAC document in each estate, for example HIRAC in Karang Ringin state is socialized on April 4, 2011, which is HIRAC for each work activity, such as Harvest work (Block Harvesting System) - Customize the length Harvesting pole, Hazard are pinched fingers, finger-effect injured, Risk (E = L, P = L; R = L), Risk Control, Training use of harvesting Pole to all workers. Document HIRAC Rantau Panjang (RJF) Mill for each job in each station, such as Checking and cleaning impeller fan in Kernel and Nut station, Hazard are hit the fan impeller, efect broken hand, Risk (E = H, P = L, R = M) Risk Control Lock Out - Tag Out System, signs repairing , supervision, SOP Operations, Safety Training Awerenes, use personal protective equipment, Residual Risk Nile, PIC Assistant. Company show Employee training records to improve K3 workers competency , as follow

1. Steam Aircraft Operator Certificate Class I, for example, on behalf of Datuk Chairulloh (Certificate No. 10.1721/PNK3-PUBT/OB-I/XII/10) and Purnawan (Certificate No.. 10.1721/PNK3-PUBT/OB-I/XII/10)

2. Boiler Operator Certificate, for example on behalf of Hafiz Sobri (No. 889/PL/KK/OB-I/IX/04 certificate). 3. K3 loader operator certificate on behalf of Sanro CH Sirait (No. 11.10190-OPK3-PAA/VII/2011). 4. Steam Turbine Operator certificate on behalf Mesran Sumedi (No. 11.065/OPD/KK-M/VII/2011). 5. Environmental Safety and Health Training to supervision by the PT. Indosafe Primary, for example, on behalf of

Zaherudin (No. IP/ESH/37182/2012) and Zulfikar (No. IP/ESH/37178/2012). 6. Certificate of UPTD. Industrial Training Center (BLKI) for Welders, for example, on behalf of Zulfikar No..

000/3208/UPTD.BLKI/NAKERTRANS/2010, skills training Non Institutional Welders on from 28 - 30 June 2010 (30 hour lessons).

7. Certificate Welders on behalf of Zulpikar from the Director General of Oil and Gas No.. 759/38.01/DJM/2001 with qualifications (standards used ASME Section IX; SMAW welding process; No.. WPS TBP/SMAW/WPS/PTK/001) dated February 10, 2001

8. Aircraft Operator Certificate Lift and Transport, for example on behalf of Saman as Tractor Operator No. K3. 11.1792-OPK3-PAA/III/2011 certificate; Alimutaqim as Operator Grader certificate No. K3. 11.1787-OPK3-PAA/III/2011; Samson as operator K3 Dump truck, Certificate No. 11.1791 - OPK3-PAA/III/2011.

9. Certificate Hyperkes (company hygiene & occupational health) and safety training for paramedics certificate No. Sket.24/SJ-PK3/X/08 dated 20 to 24 December 2008..

10. Certificate Hyperkes and safety training for doctors certificate No. 20.275/DH-XVII/08 dated 20 to 24 December 2008 and Decree appointment No.. 36/PPK-PNK3/KK/II/2009 and No. reg.1184/DP/KLK/2009 from Director General of Labour Supervision.


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11. P3K training at RJE on November 21 2012 and NAE on December 19, 2012 by Nurse (Ida Royani have followed Hyperkes).

Companies have SOP related emergency response system include:

SOP Preparedness, Response and Recovery state (No.7309/GPI/11) approved on February 10, 2011 and the distribution date on February 19, 2011

SOP Prevention and Control of fire include fire prevention, fire fighting with extinguishers and hydrant; fires fighting in platation (preparation, fire extinguishing by a squad of Fire Department, Prevention of expansion of fire conditions)

SOP Evacuation (7301/GPI/11) dated February 10, 2011, distribution date of February 19, 201

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

SOP Prevention and tackling flood (006/GPI-11) dated March 15, 2011

Standard of installation and set fire extinguisher Emergency Response Team, as follow :

1. RJE, Coordinator Pandu Wilantoro; Response Team (Chairman Efrizal M with 4 members); Evacuation Team (Chairman Zulkifli with 5 members), and Transport and Cost Team (Chairman Cendra with 4 members

2. NAE, Commander Luhut P. Hutabarat; Response Team (Chairman Rizal with 6 members); Evacuation Team (Chairman Nasrul Madian with 6 members), and Transport and cash Team (Chairman Wayan Jeroning with 7 members )

3. RJF, commander Datuk Chairullah. Hutabarat; Response Team (Chairman Zulfikar with 4 members); Evacuation Team (Chairman Furman Gusalam with 4 members), and Transport and cash Team (Chairman Syarpani with 3 members).

Emergency Response training: Light attack, Earthquake and Fire (fire extinguisher use, hydrant and gunny Wet) dated January 19, 2013 attended by 22 participants from mill and estates (Commander squads and 2members representative). The evidence of compliance with health and safety equipment program and first-aid equipment (P3K) in the workplace, are :

1. Fire extinguisher Layout that show location and number of fire extinguisher for example in BYE 18 pieces and KRE 57 pieces; RJF 37 pieces; NAE 68 pieces; MJE 47 pieces; RJE 72 pieces. Examination conducted every month. Fire equipment inventory stored at RJE and KRE

2. RJE: Robin Engines (1 unit), engine water pump Honda 1 unit, 2 pieces suction hose, flashlight 2 pieces, 4 pairs of safety shoes, mask 10 pieces; bucket 2 pieces, Gunnyi 2 pieces, machetes 2 pieces with, hoes 1 piece, tank trailer 2000 liters 2 pieces, glasses 8 pieces, waterpack 10 pieces.

3. KRE: Sihabura 1 unit, 1 unit 5M suction hose, exhaust hose 20M (5 pieces), water tanks 1 unit, buckets 5 pieces, masks 5 pieces, Apron 5 pieces, Nozzle 1 piece, Helm 5 pieces, Mask 5 pieces, Gloves hand 5 pieces, glasses 5 pieces,gunny 1 pieces

4. RJF: 8 Hydrant. Ccompany provides personal protective equipment for workers. It proof by report of PPE transfer to employees such as Apron (27 pieces), Cloth Gloves (28 pieces), bucket (27 pieces) and Masks (28 pieces) to fertilizing workers March 21, 2011. Based on field visits known that all workers wear PPE in accordance with occupational risk. The company conducted first aid emergency (P3K) training for mill and estates workers as follow :

1. P3K training for officers in RJ, planned in November 2012 and realized on November 21, 2012. 2. P3K training for officers in NAE P3K planned in December 2012 and realized on December 19, 2012. 3. P3K training on March 26, 2011 was attended by 83 participantscomplete with photo, list of attendees training

materials presented by Doctor (Dr. Waluyo)


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Based on field visits and interviews in the mill and estates known that in in each unit have employees who have received P3K training, for example all foreman. Company show Monitoring accidents every month, explained incident date, the name of victim, location , working days lost, cause and evaluations. for example:

1. NAE on 12/19/2012, the victim’s name Asnan, location in Block B34, working days lost 1 day, cause struck down by midrib and evaluation is recommended to arrange a safe distance when put down the midrib)

2. RJE on 12/08/2012, the victim's name Heri Sulistiyolocation in plantation, working days lost 1 day, cause accident is stab wound in the right leg because chisel and evaluation is aware foot position during wear chisel

3. RJF on 09/02/2012, the victim's name Alex Rusli Bin, location in Sterilizer station, working days lost 12 days, cause accident is slipping on stairs cantilever sterilizer and evaluation is giving socialization of good work, adequate lighting and maintain the neat in working place

The Accident data are reported in the P2K3 submitted to Manpower and Transmigration office every 3 months. Recommendation of corrective action in Accident Monitoring form is appropriate to prevent same accident. Example: Accidents dated 19/12/2012, victim’s name Asnan - harvester NAE,location in Block B34 , working days lost 1 day, cause (struck down by midrib) and evaluation (negligent), recommendations (set at a safe distance while put down midrib). Thus, Noncompliance CAR-2011.13 stated closed.


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

Company have an ongoing training program for staff, employees and contractors for one period (July 2012 - June 2013), describes the training program based on training needs for each position with target based on the training schedule. For example:

1. Training Application of Early Warning System and Integrated Pest Management, leaf samples and plan deseases and pest in Bumi Ayu Estate, Block J23, Division I, planned for census team in June 2012 and realized on 8th June 2012 . It was attended by 11 participant (census workers and foreman).

2. P3K training for officers in RJE, planned in November 2012 and realized on November 21, 2012. 3. P3K training for officers in NAE P3K planned in December 2012 and realized on December 19, 2012. 4. Training of Emergencies responses Earthquake and Fire (fire extinguisher use, hydrant and gunny wet)

needed for emergency response officer planned in January 2013 and is on January 19, 2013 attended by 22 participants from the mill and estates (Commander squads and 2 members representative).

Company have Employee Training Summary document for each estate and mill, describes the employe’s name, Employee ID number, Position, type of training, years of training and the existence of the certificate. For example, the name Mirlansyah, NIK (44 763), Position Assistant, training follow Motivation courses year 1999 in Palembang, the certificate is not available, the tidal Management Training at Hotel Sanjaya Palembang year 2000 certificate is not available, efective in Leadership Skill Hotel Grand Zuri Pekanbaru year 2009 certificate is available. There is training realization in accordance with programs and the identification needs. for example:

1. Documents of Mass Balance SCCS training dated January 29, 2013 was attended by 21 participants (Mill Manager, Senior Assistant, Assistant and administration). Available list of attendees, the material activities and photo) submitted by the ESH Manager (Training RSPO. Lead auditor No. 004/SEK.JEN.KAN/01/2011).

2. Environmental Safety and Health Training to supervisor by the PT. Indosafe Primary, for example, the name Zaherudin (Certificate No.. IP/ESH/37182/2012) and Zulfikar (Certificate No. IP/ESH/37178/2012).

3. Certificate of Basic Training Security No.. IJ/493/V/2010 to security, for example, the name of Asnawi Bin Dahlan.

4. Certificate of UPTD. Industrial Training Center (BLKI) for Welders, such as the name of the certificate No. Zulfikar. 000/3208/UPTD.BLKI/NAKERTRANS/2010, skills training Non Institutional Welders on from 28 - 30 June 2010 (30 hour lessons).

5. Certificate of Aircraft Operator Lift and Transport in March 2011, for example the name of Saman as Operator


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Training at RJE P3K on November 21, 2012 and in the NAE on December 19, 2012 by Nurse (Ida Royani Certificate No. Hiperkes. Sket.24/SJ- PK3/X/08).

Companies require contractors who are trained in the contract agreement such asfor a driver must have a driver's license. Contractor selection based on tender and work experience. Conducted training for local contractors in accordance with the training program in each such estate , for example Contractor Trainingby AssistantKarang Ringin Estate on January 3, 2013 followed by 6 workers from CV Palm Dewa Jaya Mandiri and Arton. The training covers potential hazards, accident prevention, the importance of OHS, the use of PPE and work allocation. Welders


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.

There is AMDAL documents have been approved by the Agribusiness Department of Agriculture. No 01/ANDAL/RKL-RPL/BA/II/1999 dated February 8, 1999 covering 87,000 ha study area, and revision of documents RPL / RKL plantation and mill PT Guthrie Pecconina have been approved by the Environment Agency Musibanyuasin District No. 1198 year 2010 dated 5 November 2010. The area covers 15,425.32 ha consists of GPI (RJE): 3,534.79 ha, GPII (BYE): 2,669.86 ha, GPI III (NAE): 3,576.54 ha, GPI IV (KRE): 4,085 .53 ha and GPV (MJE) 1,558.50 ha, and mill capacity 80 tons / hour and FFB production of 60 tons per hour. Compared with the previous audits, there was no change in type impacts and monitoring method caused by estate operation. There is regular reports of RKL / RPL until semester II of 2012. First semester report has been submitted to the Environment Bodies, South Sumatra (09/26/2012) and Musi Banyuasin (09/17/2012). Second semester report of 2012 has been drafted and still on process of review by the ESH Manager in Pekan baru Office. The results of environmental monitoring until first semester of 2012 was not found conditions that document RKL / RPL should be revised.


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.

According to available documents reports, PT. GPI has identified rare, threatened, or endangered species, and habitats with high conservation value in November 2009. The identified plants species are Kempas (Koompasia malaccensis), Sialang (Koompasia excelsa), Tampuy (Baccaurea macrocatpa), Bungur (Lagerstomia speciosa) dan Tembesu (Fragrae fragrans). The identified animals species are long tail monkey (Macaca fascicularis), tiger (Felis bangalensis), kingfisher bird (Alceda atthis), lizards (Varanus nebulosus). Habitats with high conservation value were identified as HCV 1.1, HCV 1.2., HCV 1.3, 4.1 HCV, HCV 5 and HCV 6 with an area of 784.77 hectares. HCV management program for each estate (Bumi Ayu, Rantau Panjang, Napal, Karang Ringin, and Mangunjaya) are available. It describes the plan stabilization activity of HCV, Socialization HCV areas, the security of HCV, inventory and rehabilitation HCV damaged areas, institutional strengthening, SOP development and operational guidelines, human resource, procurement facilities and infrastructure, and monitoring. However, field inspection showed that rehabilitation planned in 2011/2012 did not realize and pushed back to July 2013. Refer to audit stage-2 and stage-1. the steps have been taken compile with regulations such as Presidential Decree 32 year 1990 and Law on Protected Areas. No. 5 year 1990 on Conservation of Natural Resources and Ecosystems. Socialize to protection flora and fauna has been done by PT. GPI internal, community, the village government, the sub


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district government and the district government. Documentation is available. PT. GPI has also socialization in the form of printed material and warning signs prohibiton to hunting in the wild. There are 52 warning signpost throughout PT GPI area. For HCV management, PT. GPI have special officer who have been trained to manage HCV in each estate.


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

PT. GPI has identified the sources of waste through AMDAL documents prepared in December 1998, Matrix identifying sources of waste (type, source and manage), as well as the identification of Exhaust Emission Matrix in mill that describes category Air Pollution and Emissions, Noise; emision source, polution and control. Based on action manage plan, waste management have been implemented by: utilization of POME (effluent) to land application, use of Empty Fruit Bunch (EFB) for estates, fiber and shells for boilers, the management air pollution through zero burning policy, open burning to specific activities and and controlled, the management of factory air pollution. Hazardous waste management plan included in the Waste Source Identification documents and SOP waste management with SOP-25/GPI/2012 on December 1, 2012 and was approved by management. The documents compile with laws and regulations in Indonesia. During visit was known that PT GPI has made canopy for solar tank in KRE and the hazardous waste temporary license No. LB3. 73 year 2009, Noncompliance CAR-2011.34 stated Closed. For monitoring in and out of Hazardous waste, PT. GPI has Hazardous waste balance document which updated every month based on actual data. The documents reported regularly to the Environmrnt bodies Musi Banyuasin (3-month). The company also showed schedule of Clinical Hazardous waste Investigation and the Log on January 31, 2013 and storage time limit until March 30, 2013. There have planox test 1 pieces, sewing needles and Hazardous waste Clinic 0,5 kg that stored in Hazardous waste warehouse of Rantau Panjang Mill.


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

The waste used as renewable energy source are fibers and shells for boiler. Record of shells and fibers utilization are available periodically. Records of energy-efficiency analysis are available in the form of comparative analysis between renewable energy (fiber and shell) with CPO production in units ”fiber and shell tons/ CPO tons ". PT. GPI has been also monitored diesel fuel usage periodically, including for period 2010/2011 and 2011/2012. Results of analysis is graphics of trend ratio between diesel usage and CPO production.


5.5 Use of fire for waste disposal and for preparing land for replanting is avoided except in specific situations, as identified in the ASEAN guidelines or other regional best practice.

PT GPI have no-burn policy for land clearing activities and replanting in accordance with SOP land clearings in Minamas Plantation, as follow : Continuity Plantation Management Guidelines. No724/TQE-SPMS/09 points 5.7.2 Zero Burning Policy. Company policy in Reference Manual Palm oil Agronomy Section 4: Land Application Points 3.1.b stated that land clearing must compile with Director General of Plantation decree No.. KB.110/SK/DJ BUN/05.95, dated May 30, 1995 about the technical manual land clearing without burning as a guideline for plantation development and land preparation


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without burning, then the Land clearing activities should be based on the letter. In the Agronomy Manual Reference document No.. 110/EST-ARM/08 section 4 of the land preparation, explained that land preparation is done without burning (zero burning). It is proofed by land preparation report, where there is no burning. Procedures of fire extinguishers are available (No.SOP-17/GPI/2012) valid on December 1, 2012 include preventive activities (prevention), action and administration. In the procedures describe the stages of fire prevention and control activities that adequate. Examples of preventive action are mapping the fire-prone areas, carry out patrols with appropriate frequency level of vulnerability, warning sign board in vulnerable areas, etc.. Fire prevention facilities and infrastructure in PT GPI ( RJE and KRE) area, are:

1. RJE: Robin Engines (1 unit), engine water pump Honda 1 unit, suction hose 2 pieces, flashlight 2 pieces, safety shoes 4 pairs, mask 10 pieces; bucket 2 pieces, Gunny 2 pieces, machetes 2 pieces, hoes 1 piece, tank trailer 2000 liters 2 pieces, glasses 8 pieces, waterpack 10 pieces.

2. KRE: Sihabura 1 unit, suction hose 5M 1 unit, exhaust hose 20M 5 pieces, water tanks1 unit, buckets 5 pieces, masks 5 pieces , Apron 5 pieces, Nozzle 1 piece, Helm 5 pieces, Mask 5 pieces, Gloves hand 5 pieces, glasses 5 pieces, burlap 1 piece

Based on field visits in RJE, firefighting equipment in good condition.


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

Sources of pollution and emissions in Palm Oil Mill has been identified and stated in the Hazard Identification Risk Assessment Control (HIRAC) document. The sources are generator room, fuel tanks, production process, turbine (boiler), pome, workshops, and others. monitoring of air quality and emissions conducted every month, air samples were analyzed in an accredited laboratory. Emission measurement data are available for second semester of 2012 which was held on 19 September 2012. The results show that the air quality measurements below low threshold as follows: results boiler measurements:

Parameter Units Measurement Threshold

(Permen LH 07/2007 lampiran 1)

Boiler-01 Boiler- 02

NO2 mg/NM3 221 230 600 SO2 mg/NM3 112 136 800 Partikulat mg/NM3 81.5 89 300 Opasitas % 20 20 30 Hidroklorida mg/NM3 0.42 0.15 5 Klorine (Cl2) mg/NM3 0.033 0.017 - Amoniak (NH3) mg/NM3 0.43 0,45 1 Hidrofluorida (Hf) mg/NM3 0.116 0.33 8

Emision from Generator measurements :

Parameter Units Measurements Threshold

(Permen LH 21 / 2008, lampiran I)

Genset 01 Genset 02 Genset 03

NO2 mg/NM3 216 43.1 80.7 1000 SO2 mg/NM3 661 40.1 40.1 800 H2S mg/NM3 0.036 0.25 0.016 -


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Partikulat mg/NM3 41.5 33.5 31.5 150 Opasitas % 10 10 20 20

Air quality ambient :

Parameter Units Location Threshold

(Pergub SS No. 17/2005, Lampiran I)

Emplacement Front Office

Karbon monoksida (CO) µm/NM3 1.145 2.290 30,000 Sulfur Dioksida (SO3) µm/NM3 <0.003 0.010 900 Nitrogen Dioksida (NO3) µm/NM3 <0.002 <0.002 400 Amoniak (NH3) ppM 0.57 0.33 2.0 TSP µm/NM3 0.33 1.27 230 Kebisingan dB

52.9 68.33 55 (emplacement)

70 (industry)

Program to reduce emissions and pollution is consistently performed through the construction of furnace in the dust collector which was cleaned every day, and the preventive maintenance to boilers and generators every week by cleaning the boiler and generator and maintenance (replacement Olie periodically ). Examination report has shown. There is also liquid and solid wastes generated by the production process for land application (liquid waste and empty bunch and used as fuel (fibers and shells). PT. GPI have effluent Utilization Permit for land application issued by Regent Musi Banyuasin No. 601 year 2011 dated 18 May 2011, valid for 5 years until 2016. It describes the location of land application include Rantau Panjang Estate (RJE) mainly Block A006 covering 46 Ha, A011 Block covering 57 Ha, Block A012 covering 56 Ha and Block A013 covering 41 Ha, so total area is permitted for land application are 200 Ha. Until January 2013, actual land application area of 53.2 ha (25%) consists 32.7 Ha in block A12, and 20.5 Ha in block A013. land application Map and plan rotation matrixof effluent location Rantau Panjang Estate for period 2011 - 2012 has been shown.


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 have Environmental Impact Assessment document year 2010 and the Environmental Impact Analysis documents describes information of positive and negative impacts caused by operation from mill and estates of PT GPI There is a revision document of RPL / RKL for mill and estates of PT Guthrie Pecconina Indonesia No1198 year 2010 dated 5 November 2010. Organization has conducted monitoring and reporting 6 monthly of environmental management (RKL / RPL) periodically.


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.

Company have communications procedures / Consultation with Community (SOP (RSPO/6.2/KKM) and it has consulted and socialized to community around estates are (1) Talang Piase Village (May 14, 2011), (2) Talan Ilo III village (May 27,


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2011), (3) Napal Village (May 29 20 110), (4) Karang Ringin II Village (May 26, 2011), (5) Rantau Kasih Village (May 13, 2011). Te records explained time, plac, material, photo and a attendees list. List of stakeholders are available include full identity such as name, complete address, phone number / mobile. There is no change in the number of registered stakeholders compared to previous audit (stage 2), consisting of 29 personnel representing local government, 5 personel representing central government personnel representing 5, 8 personnel representing organizations / NGOs, community leaders 11, 60 personnel representing the contractor partner, 11 personnel representing educational institutions, and 8 represent the local health personnel, insurance, and banking. Ahmad Yani has been established as a clerk for consultation and communication with the public in accordance Estate Manager Decree No.001/Mgr-SK/III/2011 on March 31, 2011.


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

There is no change in the procedure type, disclosure mechanism and complaint handling. It is similar to previous audits. The procedure consists of Community Consultation and Communication (RSPO/6.2/KKM), Society Complaint Handling (RSPO/6.3/PKM), Employee Complaints Handling (RSPO/6.5/PKK) and conflict resolution (RSPO / 2.2/PK). It had socialize to communities around the estate are (1) Talang Piase Village (May 14, 2011), (2) Talang Ilo III village (May 27, 2011), (3) NAPAL Village (May 29 20 110) and (4) Karang Ringin Village II (May 26, 2011), (5) Rantau Kasih Village (May 13, 2011). The socialization Record consist of time, place, material, photo and attendees list. Technical of disputes solution as effective, timely and correct manner describe in mechanism (flow chart) the complaints handling as follow : Complaints from internal / external received by Kasie and note it, then delivered to the manager to make decision or if needed to consult with head department and last made decision. Complaints from workers can solve in two days (counting from the complaint entered into management until realization decision), while society complaints handling is depending on the type of complaints, if the complaint was mild and the facilities available, it can solve more or less three days, but if complaints is significant and need consultation with head office management, approximately one week. Log Book of community complaint (BYE/KM.H/01/2011) record grievances and aspirations.

2011 - there are 3 requests related to transport (Irin - Talang Dilo), examination of harvested palm plantations (Rudiyansyah - Bumiayu), and assistance electricity connection (Hajar - Talang Dilo).

2012 - there were 2 requests related to bridge repairs in Talang Dilo (Bumiayu); contruction of of flow of water in estate (Sirot - Bumiayu).

All requests have been responded no more than 10 days since request. Procedures to identify and calculate the compensation for loss of legal or customary rights over the land covered by procedure (SOP) Conflict Resolution (RSPO/2.2/PK). There is no contents revisions or mechanisms of compensation calculation. It is similar to previous audits. It is similar to previous audits.


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.

Procedures to identify and calculate the compensation for loss of legal or customary rights over the land covered by the procedure (SOP) Conflict Resolution (RSPO/2.2/PK) and have been socialized.


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All the evidence are available such receipt of compensation payment, land Waiver Letter, Statement is not disputed and photo of submission compensation. For collective settlement were witnessed by head of village, sub-district, and other local government officials. The Statement stated that the rights of the landowner (First Party) on its own behalf receive compensation for the land and plant on it with 'no compulsion'. there is no compensation process carried out in the period 2010-2012.


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.

There is payroll refer to GM HRM Memorandum No.. 045/HRM-i3/IV/2012 dated 2 April 2012 about wages and salary structure for employees of PT. GPI. It set the lowest wage is Rp. 1,389,450 and the lowest Structure Monthly Salary G1 is Rp. 1,443,440 while Minimum Wage of South Sumatra Governor in according to Decree. No 825/KPTS/DISNAKERTRANS/2011 for agricultural sector is Rp. 1,256,175. Based on interviews with workers, such as harvesting workers, mill operators, warehouse keepers and baby sitters, have known that the company provide adequate compensation to the workers. There are two types of company rules in PT GPI are the Companies Regulations set by the BKS-PPS (Cooperation Agency - Sumatera Plantations Company) with a central Board SPSI (All Indonesian Workers Union) for Agriculture and Plantation in Indonesia (approved on July 10, 2010). It be valid to monthly and daily SKU employees (effective from 10 July 2010 until 9 July 2012) and based on HRM explanation, collective labour agreement still in process and reffer to low Article 25 paragraph 3 stated that if before the agreement ended, there is new agreement, the old collective collective labour agreement is valid until a new agreement issued. While for staff use Collective Labour Agreement of Minamas Plantation as agreed between the Minamas Plantation with Bipartite Cooperation Agency and Chairman of worker union in each company (40 company), which has been signed by the parties on June 7, 2012 in accordance with Director-General Industrial Relations and Labor Social Security Decree No. Kep. 98/PHIJSK - PKKAD/PKB/VI/2012 dated June 19, 2012. Effective on February 24, 2012 until 23 February 2014. Public facilities and infrastructure were provided by company include:

NAE, Manager House I unit, Assistant House / KTU 3 units, employee house G2 190 units, G3 2 G10 2 units, BSS / BMS housing G2 1 unit, daycare 1 unit, preschool 1 unit, Mosque 1 unit, clinics1 unit. There are wells as source in every empalcements.

RJE, manager House G1 1 unit, assistant house G16 units, G2 200 units, Polyclinic 1 unit, daycare 1 unit, preschool G2 1 unit, Mosque 1 unit. There are wells as source in every empalcements

MCC, manager House 1 unit, assistant house 8 units, foreman house G28 units, employee houses G2 20 units, GM mill house 1 unit and mill 1 unit. Sources of clean water is water Treatment Plant which is distributed to employees through pipeline system.

Based on observations and interviews with workers are known that public facilities are provided such as emplacement, worship, sports facilities, schools and infrastructure (roads, bridges, water and light) have been available in good condition and adequate. Company has required the parties (contractor) to cooperate to comply with labour regulations that contained in the letter of agreement. For example: the agreement. No 194/SPK-Lokal/KRE/VI/2010 between PT. GPI with CV. Dewa sawit Mandiri in rental of heavy equipment with type exavator long arm Brand Komatsu, the clause stated that the Second Party (CV. Dewa sawit Mandiri) must comply all provisions regarding to occupational health & safety, Insurance, and wages.



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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.

Company have a policy that gives freedom of workers to organize in Plantation Sustainable Management Guidelines (No. 724/TQEM-SPMS/09 dated 27.08.2010). There is recording of union meetings, as follow :

1. worker union PT GPI meetings on 26 January 2013 discuss the purposes of cooperatives establishment, attended by 15 officers cooperative and members (available list of attendees; minutes of meetings and photo).

2. worker union RJE meeting on 14 January 2013 discuss the cooperative establishment attended by 7 officers cooperative and members (available list of attendees; minutes of meetings and photo).

3. worker union NAE meeting on 15 January 2013 discuss the cooperative establishment attended by 14 officers cooperative and members (available list of attendees; minutes of meetings and photo).

4. worker union RJF meeting on 28 January 2013 discuss the cooperative establishment attended by 8 officers cooperative and members (available list of attendees; minutes of meetings and photo).


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.

There are no changes in policy related to worker's age requirements . It is similar to previous audit. Policy of worker's age requirements contained in paragraph 6 Sustainable Plantation Management Guidelines (No. 724/TQM-SPMS/09 date 27/08/2010) approved by the Chief Executive Officer dated 01/04/2010, and items 3 Memorandum of children Protection Policy (POD-UM-052/III/2010 dated March 24, 2010), declared "Banning use of labor under age refer to Manpower regulations". Age worker recorded in the Register of Employees thet identified by date of birth. Based on employee list in December 2012, there were 1,899 employees (total) in all estate. The youngest employee is 18 years old on behalf of Cahyono, harvesters NAE, and on behalf of Epriyanto - harvesters RJE.


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.

There are no changes in policy related opportunities and equal treatment of workers. It is similar to previous audits. The policy stated in point 1 Sustainable Plantation Management Guidelines (No. 724/TQM-SPMS/09 date 27/08/2010) approved by the Chief Executive Officer dated 01.04.2010, declared "All the staff / employees should be treated reasonable and fair in matters relating to recruitment, advancement, working conditions and job description, regardless of race, degree, ethnicity, gender, skin color, imperfection (disability), sexual orientation, membership organizations, political views, religion, and age. ". There are carriers planning mechanism must follow by all personnel to get promoted to higher position, through evaluation. The Records are available. Proposal made by Estate Manager, approved by GM Estate and SGM Operations Sumatra, and verified by GM HRM (Human Resources Management). For example : Promotion of 25 personnel SKU Monthly Employee in Rantau Panjang Estate Number: 308/GM-Mgr/XI/2012 dated November 12, 2012. Evaluation records period 2011-2012 describe employee's name, education, current position, date started work, salaried, aspects of assessment, the cumulative value, and the proposed promotion.


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Payment of wages refers to GM HRM Memorandum No.. 045/HRM-i3/IV/2012 dated 2 April 2012 about wages and salary structure for the employees PT. GPI set the lowest wage is Rp. 1,389,450 and the lowest Structure Monthly Salary G1 is Rp. 1,443,440 while Minimum Wage of South Sumatra Governor in according to Decree. No 825/KPTS/DISNAKERTRANS/2011 for agricultural sector is Rp. 1,256,175.


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.

There were no changes in policy related to sexual harassment and violence against women It is similar to previous audits. The policy described in the Social Policy Sustainable Plantation Management Guidelines (No. 724/TQEM-SPMS/09 dated 27/08/2010), declared: 'Develop and implement policies to protect women workers from sexual harassment and crime and protecting rights associated with female reproduction ', by form the Gender Committee. there have Gender Committee in each estates unit and socialized to employees. One of Gender Committee program is counseling HIV / AIDS prevention and periodic screening health and have been realized on December 22, 2012 was attended by 10 sprayers. The other program is religious approach (monthly recitation) which emphasizes women to dress neatly to their self. Attendence books recorded permit on behalf woman workers every month. The reason are giving birth and menstruation, but 'menstruation' not made explicit becouse it are considered 'taboo'. Example, permits 2 days on behalf of wati (sprayer) in March, April, June, and August 2012 without any reduction in wages mechanism of employee grievance handling described in SOP Employee Complaints Handling (SOP-006/GPI/2012 dated 01/12/2012), explains the sequence of complaints handling as follow : Complaints submitted in writing to the their assistant supervisor, recorded by an assistant into a register book then it will be responded.


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

There are no smallholder farmers in PT. GPI. There are examples of local contractors payment on January 1, 2013, on behalf of CV. Mulia Indah Lestari (No. SPK. 0113/SPK-LKL/PT. GPI-RJF/VIII/2012) to work assembling conveyor feeder thresher line 01 as Rp. 17,073,000.


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

There is an annual CSR program, divided into four programs are social charity, health charitiy, educational and sports charity, and incidential and sustainable CSR.

(a) Social charity is given to the villagers in the form of 2 cows at Eid al-Adha, gifts Eid al-Fitr and support facilities for worship

(b) Health charity is given in the form of mass circumcision, blood donor and free medical treatment. (c) Education and sport charity is given in the form of sports facilities, educational facilities, and training for

teachers and youths. (d) Incidential & sustainable CSR is given in the form of provision of clean wells and smallholders plantation

(KKPA). Realization in 2012 are Blood Donor involving 57 employees, mass circumcision for 90 children in surrounding villages, and KKPA covering 2,211 ha (2 ha per person). Noncompliance CAR-2011.35 stated Closed.


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Site visits and interviews with community leaders S. Medak village and Air putih Ulu village, the community are quite capable of self, and the assistance has been appropriate.


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.

Not Applicable - no new development outside the area. It is similiar with previous audits (13,961.35 ha).


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.

Not app[licable – see explanation in 7.1


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

Not Applicable. There is HCV identification, conducted in January 2010. The Document ensure no HCV area include the planting area. For additional information, no development of new planting in the GPI statement area.


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

Not applicable


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

Not applicable


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

Not applicable


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.

Not Applicable. There is no new land clearing and replanting. For land preparation GPI has a land clearing policy by non-burning techniques (Reference Manual procedures point 3.1.b and guidelines sustainable Agronomy plantation management. No. 724/TQEM-SPMS/09 point 5.7.2). There is no development of new planting



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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.

All plan and monitoring of environmental parameters, include integrated pest management, water quality monitoring, air quality monitoring, and social conditions, described in the RKL / RPL, and the realization delivered periodically (per semester) to the relevant agencies. PT. GPI implement periodic 6-month internal audit were conducted by pekan Baru Office. The reports details describe conclusions and opinions of internal auditor and auditee opinion. Result of internal audit activity in June 2012, as follow :

the quantity of application EFB in Block C018 NAE does not match (less than 3 rickshaw or + 250 kg) - addition up to 250 kg.

There are demolition EFB that cover collection road in Block C018 NAE - has been trimmed. The entire corrective actions are documented in Memorandum Estate Manager. Example, Memorandum Manager in rantau panjang estate (RJE) No POD-RJE-IA-001/XI/2012 dated 27 November 2012 about follow-up audit finding that describe the issue and an explanation of corrective actions. PT. GPI has also shown improvement over 6 noncompliances and advice issued by RSPO audit in 2010, consisting of peat land management, occupational health & safety program, management of traditional rights, hazardous waste management, the company's contribution to society, and implementation supply chain. The improvement of 2 (two) noncompliance (NC 2011.34 and NC 2011.36) and 4 (four) OFI (OFI 2011.05, 2011.13, 2011.33, and 2011.35) has followed up on previous audit and stated CLOSED.All evidence of corective actions have been shown and verified by auditor MUTU.



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3.2. Summary of Assessment Report of Supply Chain

Clause (Module D) CPO Mills - Segregation 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.

a) The Company have SOP Supply Chain Product Segregation System (SOP-027/GPI/2013) Rev. 1 dated January 30, 2013 approved by ESH Manager.

b) Personnel who responsible for these requirements are:

Mill manager keep and maintain all documents and records of raw materials usage, additional materials used in production process and the quality product, shipments.

Assistant Manager make recapitulation / daily reports.

Laboratory Assistant / PSQM analysis and check quality of raw materials and products in all stages of production process. Supervision delivery and loading

Assissten process control process in mill

Assistant / Sr. Assistant / Logistics Manager control CPO and PKO transport from mill to bulking station.

Marketing Department control sales.


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

Company has a mechanism of FFB acceptance. The driver must show FFB courier letter from each estates and contractors thet describe origin and quantity of FFB. There is SOP palm oil mill approved by Mill Controller in December 2011 include SOP for weighbridge stations, loading ramp, cooking stations, Trippler and Thresher, digester stations, press station, oil station room, Depericarper station, Nut Cracer Station, Kernel Silo, Despatch CPO, Despech Palm Kernel, Boiler House, Power Plant. There is also available laboratory Instruction tests approved by the Senior Manager Mill on 1 April 2011.


2 Purchasing and goods in

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

Company has a mechanism of FFB acceptance. The driver must show FFB courier letter from each estates and contractors thet describe origin and quantity of FFB. There is Dailly and Annual Summary Of Sustainable FFB, CPO and PK (Ton) and , describe production of certified and un certified product


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


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The claims have not exceeded actual production of certified products. Until December 2012, total production of CPO is 39,683.60 tonnes and PK is 9,129.20 tons. While claims certified products (corresponding certificate No.MUTU-RSPO/017 for CPO is 45.271 Tons CPO and PK is 9,949.67 tons. There is a letter from Head of PSQM Minamas Plantation No. 002/MP/I/2013 dated January 31, 2013 about amendment of Supply Chain Model from Mass Balance turned into Segregation.


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.

Recording and full report can be shown by the company contain of:

Daily Report and Monthly Report describes the CPO production quality, CPO Stock Quality, PK Productions quality, Empty Bunch, oil looses, press and Ripple Mill / Nut Cracer Efficiency.

All recording and reporting has been created and stored. Document storage system such as SAP system (computerized) and hard copy (print out), it stored in manager and document room

Noncompliance CAR-2011.36 stated Closed.


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

Appendix 10.2 SOP Supply Chain Product Segregation System (SOP-027/GPI/2013) All recording and reporting has been created and stored. Document storage system such as SAP system (computerized) and hard copy (print out), it stored in manager and document room


3.3 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.

Company have Summary of Production and Despach Record for Month, describes data received buah, prosessed, Rainfall, 0il (Produced oil, Extraction Rate, Technical Specification (FFA), process hours, Trough Put, Weith per cage), Kernel (Produced, Extraction Rate, Technical Specification(Moisture, Dirt and shell)), Despatched oil, stock oil, Despatch kernel, Stock kernel dan Ready Stock. update until September 2012.


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.

Supply chain model has been shown clearly in documents, for example : Sales Contract No. 00227/GPI/KTR-MKS/LOK/X/2012 dated 24 october 2012


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) (d) The quantity of the product delivered


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(e) Reference to related transport documentation

All invoices are issued for RSPO certified products have included the following information (a) Name and address of buyer (b) Date of issue invoices; (c) description of product; include supply chain model that applies (Segregation) (d) quantity of shipped products (e) Reference to the relevant transport documentation

Examples of documents: Invoice No. 00323/GPI/XI/2012 inform about: (a) Buyer’s Name PT. Sumber Indah Perkasa, address Plaza BII Towers II LT.30 Jl. MH. Thamrin. Kav 51 22.

Gondangdia, Menteng, Central Jakarta (b) Date of issue invoices: 19 November 2012 (c) Commodities: CPO (Palm Oil In Bulk Crued); Quality: FFA (AS Palmitic): 5.00% max, Moisture and Impurities:

0.50% max; RSPO Certified Segregation. (d) Quantity: 1,500,000 Kg.

Attached document Sales Contract No. 0027/GPI/KTR-MKS/LOK/X/2012 and Delivery Order No. 00231/00227/10/12/L-GPI-

MKS


5 Processing

5.1 The facility shall assure and verify through clear procedures and record keeping that the RSPO certified palm oil is kept segregated from non certified material including during transport and storage and be able to demonstrate that is has taken all reasonable measures to ensure that contamination is avoided. The objective is for 100 % segregated material to be reached. The systems should guarantee the minimum standard of 95 % segregated physical material9; up to 5 % contamination is allowed.

Product Identification and Product traceability in GPI mill (SOP Supply Chain Product Segregation System (SOP-027/GPI/2013). Declaration-6 declare: PT. Guthrie Pecconina Indonesia can separation of products physicaly for uncertified FFB and certified FFB . The separation begin from enter up to storage tank and will not mix with uncertified products more than 5%. So buyers know the products compile with clause 5.1 D at least 95% RSPO certified or uncertified RSPO at all. Production data in Monthly Summary of Sustainable FFB, CPO and Kernel (Jan - Dec 2012) shows Rantau Panjang mill produce FFB certified as many 179,756,043 Kg (97.98%) and 38,869,667 (2.02%) uncertified from KKPA


5.2 The facility shall provide documented proof that the RSPO certified palm oil can be traced back to only certified segregated material.

Production data in Monthly Summary of Sustainable FFB, CPO and Kernel (Jan - Dec 2012) shows Rantau Panjang mill produce FFB certified as many 179,756,043 Kg (97.98%) and 38,869,667 (2.02%) uncertified from KKPA Production Daily reports can trace back until suppliers of certified estates within PT. GPI. document traceability include: Production Daily Report, Analysis Laboratory Report, FFB Grading Reports, Weight Bridge Slip, FFB courier letter and Afdeling Report.


5.3 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 operator conforms to these requirements for segregation


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The crush is covered through a signed and enforceable agreement

in Rantay Panjang mill, Palm oil processing installation to nut cracker, integrated in one line processing and there is kernel oil is processed by independent contractor. Kernel sell to another party, for example, PT. SAP (Sinar Alam Permai) according to Sales Contract No. 00074/GPI/KTR-IKS/LOK/X/2012.


6 Training

6.1 The facility shall provide the training for all staff as required to implement the requirements of the Supply Chain Certification Systems

There is records of training for all staff associated with the technical work to support the traceability produst (process, office and laboratory). Staff and employees also had been trained and the records well maintain SCCS Segregation training records on January 29, 2013 was attended by 21 participants (Mill Manager, Senior Assistant, Assistant and administration). There is attendance list, material and photo. The speaker is ESH Manager (Training Lead auditor RSPO No.. 004/SEK.JEN.KAN/01/2011).


7 Claims

7.1 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.

The product is claimed as RSPO certified by GPI, are only product that compile production process according to the procedure traceability RJF product (the maximum 95% of products certified and non-certified products 5%). PT GPI states all claims against the CPO and PK RSPO certified, in accordance with RSPO Guidelines for Communications and Claims.



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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

S-1 PT Guthrie Pecconina Indonesia have approval / permission to use the certificate No MUTU-

RSPO/017 √


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

S-1 Not Applicable The Company does not use logo neither on the product nor off-product in the scope of PT Guthrie

Pecconina Indonesia.

√


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



√


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



√



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3.4. Summary of RSPO Partial Certification.

Total companies observed (0.5 √Y) Where Y is the total of uncertified RSPO registered company. The Management Unit name : PT Guthrie Pecconina Indonesia (KKPA Sungai Jernih). Date of Observation: 29 January 2013 – 2 February 2013

2.1

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

√

There is evidence of law fulfillment include:

1. Tenure of land compile with UU. 5 year 1960 on Agrarian Principles, namely HGU

Certificate No. 664/2003, 552/2003 for an area of 10139.91 ha.

2. Providing social security such as labour social assurance (Jamsostek) compile with UU

No. 3 year 1992.

3. Providing equipment Occupational Safety and Health program (K3) for all employees

compile with UU No.. 1 year 1970.

4. Environmental management document preparation progress (RKL / RPL) compile with

UU no. 23 year 1997.

5. No land clearing by burning compile with UU No.. 18 year 2004.

6. No discrimination against employees compile with UU No. 21 years 1999 - ratification of

the ILO's anti-discrimination stated in Collective Labour Agreement.

7. Allocating some of the area as a protected area compile with Presidential Decree No..

32 year 1990 and UU No. 41 year 1999 about Forestry. (Identification of HCV by

Aksenta in July 2012).

8. Giving wages above the minimum wage.

Corporate compliance to legality of land tenure, the implementation of environmental and social governance, labor protection, as well as the submission of the report to agencies (eg Environment Agency, Government, and the Department of Forestry and Plantations Musi Banyuasin) stated that the GPI is quite obedient and consistent with the rules.


2.2

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

√

Company shown the documents of :

1. location Permit compile with Regent of Musi Banyuasin decree No 262 year 2011

covering area of 4,000 ha

2. location Permit compile with Regent of Musi Banyuasin decree No 0217 year 2011

covering area of 2,000 ha

3. Determination of smallholder as 262 Candidates compile with Regent of Musi Banyuasin

decree No. 0258 year 2010.

4. Cooperation Agreement with KUD Sinar delima No.001/Plasma/GPI-KUD/I/2012 about

development of Oil Palm Plantation with KKPA Partnership (Cooperative Credit Scheme)

5. Plantation business permit (IUP) smallholder based on regent decree No. 0265 of 2010

(Core 800 ha and smallholder 1200 ha in Gajah Mati village, Sungai keruh subdistrict)

and IUP based on regent decree No.. 282/KPTS/IUP/DISBUN/2011 (Core 1600 ha and

smallholders 2400 ha).


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6. Distribution plan had already plots, is waiting approval from village cooperative unit

(KUD) distribute to smallholders

There is statement of the land handover from land owners such as pedestal Business Right and letter of recognition. For example, land handover statement on behalf of Aziz Ali with pedestal Business Rights and letter of recognition dated July 9, 2007 for an area of 2.8 ha approved by Head of Gajah mati Village and a letter of recognition on behalf of Aziz Alifor land area of 2.8 hectares in Gajah Mati Village on February 24, 2008 and registered in Subdistrict Office No.593/126/2009/XII/2008 dated December 3, 2008.


6.3

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

√

There is Consultation and Communication procedures to Community (RSPO/6.2/KKM), Society

Complaint Handling (RSPO/6.3/PKM), Employee Complaints Handling (RSPO/6.5/PKK) and

conflict resolution (RSPO/2.2/PK) . It had socialize to communities around the estate are (1)

Talang Piase Village (May 14, 2011), (2) Talang Ilo III village (May 27, 2011), (3) NAPAL Village

(May 29 20 110) and (4) Karang Ringin Village II (May 26, 2011), (5) Rantau Kasih Village (May

13, 2011). The socialization Record consist of time, place, material, photo and attendees list.

Technical of disputes solution as effective, timely and correct manner describe in mechanism (flow chart) the complaints handling as follow : Complaints from internal / external received by Kasie and note it, then delivered to the manager to make decision or if needed to consult with head department and last made decision. Complaints from workers can solve in two days (counting from the complaint entered into management until realization decision), while society complaints handling is depending on the type of complaints, if the complaint was mild and the facilities available, it can solve more or less three days, but if complaints is significant and need consultation with head office management, approximately one week.


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.

√

Procedures to identify and calculate the compensation for loss of legal or customary rights over

the land covered by procedure (SOP) Conflict Resolution (RSPO/2.2/PK) and have been

socialized

All proof related with conflict resolution is available in form of statement of the land handover from

land owners such as pedestal Business Right and letter of recognition.For example land

handover statement on behalf of Aziz Ali with pedestal Business Rights and letter of recognition

dated July 9, 2007 for an area of 2.8 ha approved by Head of Gajah mati Village and a letter of

recognition on behalf of Aziz Alifor land area of 2.8 hectares in Gajah Mati Village on February

24, 2008 and registered in Subdistrict Office No.593/126/2009/XII/2008 dated December 3, 2008.


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.

√


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There is identification of HCV conducted in July 2011 by AKSENTA. These documents ensure that no area of HCV is used for development of new KKPA plantations.

Status:

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.

√

Procedures to identify and calculate the compensation for loss of legal or customary rights over

the land covered by procedure (SOP) Conflict Resolution (RSPO/2.2/PK).There is no contents

revisions or mechanisms of compensation calculation. It is similar to previous audits.

There is statement of the land handover from land owners such as pedestal Business Right and

letter of recognition. For example, land handover statement on behalf of Aziz Ali with pedestal

Business Rights and letter of recognition dated July 9, 2007 for an area of 2.8 ha approved by

Head of Gajah mati Village and a letter of recognition on behalf of Aziz Alifor land area of 2.8

hectares in Gajah Mati Village on February 24, 2008 and registered in Subdistrict Office

No.593/126/2009/XII/2008 dated December 3, 2008.

Development of smallholder based on agreement between KUD Sinar delima with PT GPI in

accordance of Cooperation Agreement No.001/Plasma/GPI-KUD/I/2012 about development of Oil

Palm Plantation with KKPA Partnership (Cooperative Credit Scheme). Determination of

smallholder as 262 Candidates compile with Regent of Musi Banyuasin decree No. 0258 year

2010.


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.

√

There is statement of the land handover from land owners ( pedestal Business Right and letter of

recognition) that voluntarily agreed. For example, land handover statement on behalf of Aziz Ali

with pedestal Business Rights and letter of recognition dated July 9, 2007 for an area of 2.8 ha

approved by Head of Gajah mati Village and a letter of recognition on behalf of Aziz Alifor land

area of 2.8 hectares in Gajah Mati Village on February 24, 2008 and registered in Subdistrict

Office No.593/126/2009/XII/2008 dated December 3, 2008.



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

3.5.1 Identification of Findings, Corrective Actions and Observations at ST-2 Assessment

CAR No

Ref Std Finding Area Grade Time

Limits Corrective Action Observation Status

Closing Date

2011.

05

4.3. Peat land management does not

specifically describe the measurement

results subsidence peat soils, although all

the results of measurements water level

have been monitored and managed.

Office

and

Estat

es

OFI S1 Company must conduct the

management of peat lands

with peat soil subsidence

measurements, although all

the results of

measurements of water

level have been monitored

and managed as an effort

to minimize decreased of

soil surface.

02/02/2013

Total sample for measurements of peat soil

subsidence has considered the broad (25

ha) that refer to SOP. .

There are peat depth measurement

plan(March 2013).

Subsidence measurements use 2-inch

PVC also itu use to measure ground water

levels.

Closed 02/02/2013

2011.

13

4.7. Available monitoring data of work

accidents in each estates and mill every

month include the evaluation, but need to

be reviewed the causes of the

occupational injuries and take preventive

action.

Example, occupational accidents in the

BYE on 03/03/2011 the victim affected by

Chisel.

Office

;

Estet

es

and

Mill

CFA S1 The company have to

review the results of

monitoring accidents

related to the causes and

take corrective action to

avoid work accidents.

02/02/2013

recommendations for corrective action to

the Accident Monitoring form is appropriate

to to prevent similar accidents.

Example: Work accident on 19.12.2012,

victim’s name of Asnan - harvesters NAE,

location Block B34, the number of lost

workdays 1 day, cause (struck down by

midrib), evaluation (negligent) and

recommendations (set at a safe distance

while put down midrib)

Closed 02/02/2013

2011.

33

2.3 Management of traditional rights

In warning sign board did not state Musi

Estat

e

OFI S1 It is recommended to state

Musi Banyuasin District

02/02/2013

Information board in riparian area that

Closed 02/02/2013


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CAR No



Closing Date

Banyuasin District regulation No. 18 year

2005

Regulation No. 18 year

2005 about Lelang Lebak

Lebung on signboard and

placed in the river

controlled by pengemin and

managed by GPI as HCV-5.

controlled by pengemin have included law

No. 18 year 2005.

2011.

34

5.3 Hazardous materials and waste

management

The management of hazardous materials

and waste programs are processing,

such

1. Application for Hazardous waste

temporary storage permit, to all

estate (No. 044/GM-GPI/UM-Ex/IV/11

April 2, 2011).

2. Construction of diesel tank canopy in

KRE.

Estat

e

Min

or

S1 GPI must ensure the

Hazardous materials and

waste management can

complete on time.

01/02/2013

ESH Manager explained that the request

for Hazardous waste temporary storage

permit for all Estate is discontinued, and

all the waste will be stored in RJF

Based on observation, - diesel tank canopy

have been made.

Closed 02/02/2013

2011.

35

6.11 Company,s contributions to

community

Preparing Corporate Social Responsibility

plan have to based on basic need

identification and participatory, to result

the aid and budget of CSR clearly and

focus to priority

Estat

e

OFI S1 The company's contribution

to society –

It is recommended, the

planning of Corporate

Social Responsibility (CSR)

based on basic needs

identification results and

participatory so will produce

the aid and budget CSR

clearly and focus to priority.

01/02/2013 There is an annual CSR program, divided into four programs are social charity, health charitiy, educational and sports charity, and incidential and sustainable CSR. Realization in 2012 are Blood Donor involving 57 employees, mass circumcision for 90 children in surrounding villages, and KKPA covering 2,211 ha (2 ha per person). Site visits and interviews with community leaders S. Medak village and Air putih Ulu

Closed 01/02/2013


ASSESSMENT REPORT

SPO – 4006a.5 Page | 44


CAR No



Closing Date

village, the community are quite capable of self, and the assistance has been appropriate.

2011.

36

3.1

SCCS

Supply Chain

There are no Identity Preserved,

Segregated or Mass Balance on the

invoice or delivery document CPO

Marke

ting

Min

or

S1

Companies must ensure

the material category on the

invoice and delivery

document of CPO sales

have been listed.

01/02/2013

invoice and delivery;s document, have

been marked with stampel in according to

category of material (Segregated).

Closed 02/02/2013

3.5.2 Identification of Findings, Corrective Actions and Observations at S-1 Assessment

CAR No



Closing Date

2013.01

RSPO2.2.

Land rights. GPI did not able to show progress of land use permit (HGU) submission

Estate and mill

major 60 day Company must show evidence of land use permit (HGU) in process for entire operations area .

13/02/ 2013. Director of Legal (Head Office, Jakarta) stated that areal statement PT GPI is 16,361.34 Ha contain of 13,961.34 Ha (based on Exsa International measurement) and 2,400 ha SJE area (Core of KKPA), while the GPI area according to HGU certificates is 10,139.91 Ha contain of HGU in the process of 1,843.73 Ha and 1,417.99 Ha. President Director of GPI explained that the difference is due to differences of measurement results between PT. Exsa International (consultant) with BPN (National Land Agency).

02/04/ 2013. Company shown the evidence of progress HGU application such as Map of Land from National Land Agency, South Sumatra Province. No. 36/MB/2009 scale of

Closed With Observation

14/04/2013


ASSESSMENT REPORT

SPO – 4006a.5 Page | 45


CAR No



Closing Date

1:10,000 dated December 15, 2009 with an area of 988.68 Ha and Map of land No. 37/MUBA/2009 scale of 1:10,000 for mapping an area 814.99 Ha, 15.36Ha, 13.09 Ha and 11.61 Ha (total 855.05 Ha) so the total area has been measured by the BPN is 1,843.73 Ha. 14/04/ 2013 There is also evidence of HGU submission progress for area 1,569.16 hectares, as follow

The Letter with Number: 123/GPI/UM/PSD/VI/11 about land roving measurement application for area 667.49 ha and Number: 122/GPI/UM/PSD/VI/11 about cadastral measurement application for area 901.69 Ha.

Response from BPN related cadastral measurement application are deposite warrant letter No. 15/SPS/2011 about the cost of measurement for area 667.49 ha and Deposit Warrant No.14/SPS/2011 about the cost of measurement for area of 667.49 ha.

Letter of measurements of charge transfer request for HGU GPI area covering 1,569.18 HA based on GM PSD memorandum No. 057/GPI/PSD.JKT/09.11.

The Company has documents of fixing the boundaries for HGU area covering 1,569.16 hectares (No. 2630/6.16/VIII/2011 and 2631/6.16/VIII/2011).


ASSESSMENT REPORT

SPO – 4006a.5 Page | 46


3.5.3 Opportunity for Improvement

No Ref Std Descriptions

1 Major 2.2.1 PT GPI can coordinate with relevant agencies to complete process of registration plantation permit No.092/GPI/UM/PSD/IV/2012 to Musi Banyuasin Regent

dated 25 April 2012 for an area of 13,553.63 ha.

2 Minor 4.4.3 PT. GPI needs to ensure repaired sources of leakage in the valve drains water, boiler station, in order to avoid inefficiencies.

3 Major 5.2.2 PT. GPI needs to review the achievement of enrichment activities and rehabilitation in riparian, since the program had been delayed from plan in 2011.

4 Minor 5.4.1 PT GPI have to present the renewable energy utilization efficiency unit "calorie / tons CPO".

5 Minor 5.4.2 PT GPI have to present data efficiency of fuel decrease as a result of financial analysis derived from renewable energy (fiber and shell).

3.5.4 Noteworthy Positive Components

No Ref Std Descriptions

1 Company's commitment to implement the principles of sustainable oil palm and show seriousness to maintain RSPO certificate that has been acquired through improvement action for all non-conformances issued in previous audits.

2 Company has been provided adequate infrastructure for workers such as health facilities, educational facilities, worship facilities, emplacement and benefit to community around.


ASSESSMENT REPORT

SPO – 4006a.5 Page | 47


3.6 Summary of Arising Issues from Public, Management and Auditor Response

Public Issues (Institution/ NGO/Community)

Management Responses Auditor Responses

Environment Agency, Development & Research (BLHPP) Musi banyuasin District Head of Licensing BLHPP)

PT. GPI has fulfill the environmental documents, mainly : revised RKL / RPL, land application permit from the Regents, and hazardous waste temporary storage from the Ministry of Environment. A few years ago, there was a problem of land application because land application does not include items that are planned in the EIA (AMDAL Documents). The problem has been solved by revising the RKL-RPL and Land application permits. PT. GPI also has submitted Environment reports regulary such as RKL-RPL, Land application and hazardous waste balance Hazardous waste management must comply with existing regulations, particularly storage of licensed warehouse for all hazardous waste and clinic waste. Specifically, for medical waste required more attention because it has the potential for outbreaks of infection and haphazardly. Currently there are no complaints from community or cases of environmental pollution caused by PT GPI operations. A few years ago, there have complaints related to water quality. But company had responded, after that there is no complaint from the community.

PT. GPI has revised RKL / RPL on November 5, 2010 No. 1198 year 2010. PT. GPI has periodically provided reports of RKL / RPL, for example, RKL / RPL Semester I in 2012 reported to environment agency, South Sumatera on September 26, 2012. Balance Sheet of hazardous waste periodically repoerted to BLH Musi Banyuasin (3 months). The balance sheet period October to December can be shown and has been reported to BLH Banyuasin on January 7, 2013 (available delivery receipt). PT GPI have temporary storage permit from the Ministry of Environment No. B3. 73 of 2009 dated March 13, 2009 for RJF, RJE, Kre, BYE, NAE and MJE location. Babat Toman and Sekayu subdistrict. Musi Banyuasin district, South Sumatra. PT. GPI have monitoring document of hazardous waste balance sheet that updated every month based on actual data in and out. PT. GPI has conducted environmental management in accordance matrix RKL / RPL so there are no complaints from community

The Company has completed environmental management permits and provided environmental management reports periodically to relevant agencies.


ASSESSMENT REPORT

SPO – 4006a.5 Page | 48




Manpower and Transmigration office Musi Banyuasin. (Head of Emplacement & Development Transmigration).

Manpower and Transmigration office Musi Banyuasin. (Head of Emplacement & Development Transmigration). Related to transfer of land tenure transmigration II in Sungai Medak village and Air putih ulu village to PT GPI. Mr Fauzan and Mr Marzuki (Transmigration Agency, Musi District) explained that the overlapping area of the PT. GPI with LU II, essentially remain as violations of the law, but it was an Extraordinary case where transmigrants give the land to PT GPI through the process of buying and selling.

It is available land compensation process of LU II were facilitated by Plantation Agency. The price of land compensation for each persil in accordance with Musi Banyuasin Regent decree No.1179 year 2007 about the payment process through community lawyer and witnessed by Musi Banyuasin Government. BPN, Plantation agency, Muba Court. For example, the National Land Agency Certificate in Musi Banyuasin No. 889 on behalf of Amir Hamsyah have the land of 7,500 m2 in Karang Ringin village Babat Toman subdistric. The compencation has been paid by PT. GPI.

The compensation of transmigration land conducted with fair (FPIC) in accordance to Musi Banyuasin regent decree No.1179 Banyuasin 2007.

Sungai Medak Village, Sekayu Sub District, Musi Banyuasin. (Interview with community leaders)

lated with transmigration land transfer to PT GPI II. Mr Eded and Mr Herman (transmigrants C7 - Sungai Medak Village Leaders) explained that the transfer is do on their own for several reasons:

The condition of the land is swamp and impossible cultivated by migrants with manual

Location of land is far away from residential locations

The condition of transmigrants at that time, were lack of clothing / food after the expiration of government assistance.

The presence of PT. GPI have given positif impact for community, They are able to independentlyand the assistance is appropriate.

It is available LU II land compensation process were facilitated by Plantation Agency. PT. GPI have implemented CSR.. It is available, realization records contain program type, target, month / date of realization, photo and documentation. Contribution to local communities have been based on consultation with the community and encourage people to identify priority needs.

PT. GPI has done the process of trasnsmigran land compensation in accordance with the Musi Banyuasin Regent decree No.1179 year 2007 concerning the payment process through community lawyer, were witnessed by Banyuasin Banyuasin government. In Social Impact Assessment Report PT. GPI South Sumatra in 2010 described the positive and negative impact of the company's existence. The positive impact include recruit local employment either in estates and mill


ASSESSMENT REPORT

SPO – 4006a.5 Page | 49




Air Putih Ulu Village, Babat Toman Sub District, Musi Banyuasin (Interview with community leaders).

In connection with land LU II transfer to PT GPI, Mr Iwan (Transmigrants C1 – Air putih ulu leader) have same opinion with comunity leaders in Sungai Medak village. He confirmed that the transfer is do on their own for several reasons:

The condition of the land is swamp and impossible cultivated by migrants with manual

Location of land is far away from residential locations

The condition of transmigrants at that time, were lack of clothing / food after the expiration of government assistance.

The presence of PT. GPI have given positif impact for community, They are able to independently and the assistance is appropriate.

It is available LU II land compensation process were facilitated by Plantation Agency. PT. GPI have implemented CSR.. It is available, realization records contain program type, target, month / date of realization, photo and documentation. Contribution to local communities have been based on consultation with the community and encourage people to identify priority needs.

PT. GPI has done the process of trasnsmigran land compensation in accordance with the Musi Banyuasin Regent decree No.1179 year 2007 concerning the payment process through community lawyer, were witnessed by Banyuasin Banyuasin government. In Social Impact Assessment Report PT. GPI, described the positive and negative impact of the company's existence. The positive impact include recruit local employment either in estates and mill


ASSESSMENT REPORT

SPO – 4006a.5 Page 50 Prepared by Mutuagung Lestari for PT Guthrie Pecconina Indonesia – Rantau Panjang POM

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:

PT Guthrie Pecconina Indonesia

Mutuagung Lestari

Head of PSQM

Lead Auditor

Mohamad Pirabaharan

Deni A. Novendi

Wenesday, 13 February 2013

Wenesday, 13 February 2013


ASSESSMENT REPORT


Appendix 1. List of Stakeholder Contacted in the RSPO Certification Process

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

Date of Contact

1. Environment Agency of Musi Banyuasin

Jalan Kolonel Wahid Udin, Subdistrict of Sekayu, South Sumatera.

0714-321486 Direct Consultation

31 January 2013

2. Labour Agency of Musi Banyuasin

Jalan Kolonel Wahid Udin, Subdistrict of Sekayu, South Sumatera.

0714-321322 Direct Consultation

31 January 2013

3. Head of Sungai Medak Village Sungai Medak Village, Subdistrict of Babatoman, Musi Banyuasin

- Direct Consultation

1 February 2013

4. Head of Air Putih Ulu Village Sungai Medak Village, Subdistrict of Sekayu, Musi Banyuasin

- Direct Consultation

1 February 2013


ASSESSMENT REPORT


TANGGAL 29 Januari – 2 Februari 2013 AUDITOR

ALOKASI WAKTU AKTUAL PROSES / HAL YANG DIAUDIT

DN MES RR BB

Kegiatan

Tuesday 29/Jan/2013 06.00-08.00 08.00-11.00 11.00-12.00 12.00-14.00 14.00-17.00

06.00-08.00 08.00-11.00 11.00-12.00 12.00-14.00 14.00-17.00

Jakarta - Palembang Palembang - PT. GPI Opening Meeting ISHOMA

Document Observation:

Commitment to transparency (1.1;1.2)

Compliance with applicable laws and regulations (2.1;2.2;2.3)

Commitment to long-term economic and financial viability (3.1)

√ √ √ √

Wednesday, 30 – 31 /Jan/2013

08.00-12.00

12.00-14.00 14.00-17.00

08.00-12.00

12.00-14.00 14.00-17.00

Public Consultation Document observation:

Use of appropriate best practices by growers and millers (4.1; 4.2; 4.3; 4.4; 8.1; 8.2)

Responsible consideration of employees and of individuals and communities affected by growers and mills (6.1; 6.2; 6.3; 6.4; 6.5)

ISHOMA

Document observation:

Environmental responsibility and conservation of natural resources and biodiversity (5.1; 5.2; 5.3; 5.4; 5.5; 5.6)

Responsible consideration of employees and of individuals and communities affected by growers and mills (6.1; 6.2; 6.3; 6.4; 6.5; 6.6; 6.7; 6.8; 6.9; 6.10; 6.11)

DN

MES/RR/BB

Thursday, 1/Feb/2013 07.30-12.00 12.00-14.00 14.00-17.00

07.30-12.00 12.00-14.00 14.00-17.00

Field Observation ISHOMA Field Observation

ALL TEAM

Friday, 2/Feb/2013 10.00-12.00 12.00-14.00 14.00-18.00

10.00-12.00

12.00-14.00

14.00-18.00

Closing Meeting

ISHOMA

PT GPI – Palembang - Jakarta

ALL TEAM

Appendix 2. Assessment Program


ASSESSMENT REPORT


Appendix 3. Glossary

AMDAL (SEIA) : Social and Environmental Impact Assessment

APD (PPE) : Personal Protective Equipment

BYE : Bumi Ayu Estate

LB3 : Hazardous Material Waste

BOD : Biological Oxygen Demand

CPO : Crude Palm Oil

CSR : Corporate Social Responsibility

GPI : Guthrie Pecconina Indonesia

HCV : High Conservation Value

HGU : Land Use Permit

IUP : Plantation Operation Licence

IPAL (WWTP) : Wastewater Treatment Plant

JAMSOSTEK : Social Assurance of Labor

Jankos / EFB : Empty Fruit Bunch

K3 (OHS) : Occupational Health and safety

KER : Kernel Extarction Rate

KRE : Karang Ringin Estate

LC : Land Clearing

MJE : Mangunjaya Estate

MRC : Minamas Research Center

NAE : Napal Estate

OER : Oil Extarction Rate

P2K3 : Guiding Committee of Occupational Safety & Health

PHT (IPM) : Integrated Pest Management

PK : Palm Kernel

PKS (POM) : Palm Oil Mill

POME : Palm Oil Mill Effluent

RJE : Rantau Panjang Estate

RJF : Rantau Panjang Factory

RKL/RPL : Environmental Management Plan/ Environment Monitoring Plan

RSPO : Roundtable on Sustainable Palm Oil

SIA : Social Impact Assessment

SOP : Standard Operating Procedure

ST-1 : Stage 1

ST-2 : Stage 2

S1 : Surveillance 1

TBS (FFB) : Fresh Fruit Bunch