· PT. MUTUAGUNG LESTARI ASSESSMENT REPORT SPO – 4006a.5 Page 3 by Mutuagung Lestari for Gunung Aru POM- PT Bersama Sejahtera Sakti - SIME DARBY Plantation 1.0 SCOPE OF THE CERTIFICATION

PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT

Roundtable on Sustainable Palm Oil Certification

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

Plantation Management : SIME DARBY Plantation Sdn Bhd

Plantation Name : Gunung Aru POM, Gunung Aru Estate, Gunung Kemasan Estate, Laut Timur Estate and Pantai Timur Estate (PT Bersama Sejahtera Sakti, Minamas Plantation)

Location :

Betung Village, Sub District of Pulau Laut Timur, District of Kotabaru, Province of Kalimantan Selatan.

Certificate Code : MUTU-RSPO/005

Date of certificate issue : July 05, 2011

Date of expiry of certificate : July 04, 2016

Assessment Assessment

Date PT. Mutuagung Lestari

Auditor Checked

by Approved

by

ST-2 4-9 October 2010 ARYO GUSTOMO; MUHAMMAD NOOR

EFANSYAH; HENRY MARPAUNG; MARSUDI EKO SANTOSO

TAUFIK MARGANI TONY

ARIFIARACHMAN

S-1 18-23 March 2012 OCTO HPN NAINGGOLAN; IBNU SATRIA PRABUDI; OKTOVIANUS RUSMIN; RUDI

RAMDANI

RENY RUSTINIANINGSIH

TAUFIK MARGANI

S-2 23-26 April 2013 DENI A. NOVENDI; MARSUDI EKO

SANTOSO; YUDWI WISNU RAHMANTO; SITI JAMILLAH

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-2 5 – July - 2013 - 17 – May - 2013

http://www.mutucertification.com/


ASSESSMENT REPORT

SPO – 4006a.5 ii Prepared by Mutuagung Lestari for Gunung Aru POM- PT Bersama Sejahtera Sakti - SIME DARBY Plantation

TABLE OF CONTENT

FIGURE

Figure 1. Location Map of PT BERSAMA SEJAHTERA SAKTI Figure 2. Operational Map of PT BERSAMA SEJAHTERA SAKTI

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 9

2.2 Assessment Team 9

2.3 Assessment Methodology, Assessment Process and Locations of Assessment 9

2.4 Stakeholder Consultation and List of Stakeholders Contacted 12

2.5 Date of Next Surveillance Visit 12

3.0 ASSESSMENT FINDINGS

3.1 3.2

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

13 39

3.3 Conformity Checklist of Certificate and Logo Use 43

3.4 Summary of RSPO Partial Certification 44

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

46

3.6 Summary of Arising Issues from Public, Management and Auditor Responses 52

4.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Signing of Assessment Findings 54

APPENDICES

1. List of Stakeholders Contacted in the RSPO Certification Process 55

2. Assessment Program 56

3. Glossary 57

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 1 Prepared by Mutuagung Lestari for Gunung Aru POM- PT Bersama Sejahtera Sakti - SIME DARBY Plantation

Figure 1. Location Map of PT BERSAMA SEJAHTERA SAKTI

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 2 Prepared by Mutuagung Lestari for Gunung Aru POM- PT Bersama Sejahtera Sakti - SIME DARBY Plantation

Figure 2. Operational Map of PT BERSAMA SEJAHTERA SAKTI


ASSESSMENT REPORT

SPO – 4006a.5 Page 3 by Mutuagung Lestari for Gunung Aru POM- PT Bersama Sejahtera Sakti - SIME DARBY Plantation

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 SIME DARBY Plantation Bhd

1.2.2 Contact person Mohamad Pirabaharan

1.2.3 Company address and site address Office :

The Plaza Office Tower Lt. 36

Jl MH Thamrin Kav. 28-30, Jakarta 10350

Site :

Betung village, Pulau Laut Timur subdistrict, District of

Kotabaru, Province of South Kalimantan

1.2.4 Telephone +62-21-29926000

1.2.5 Fax +62-21-29922686

1.2.6 E-mail [email protected]

1.2.7 Web page address www.simedarby.com

1.2.8 Company status Private

1.2.9 Management Representative who completed the application for certification

Mohamad Pirabaharan

(Head of PSQM Minamas Plantation)

1.2.10 Registered as RSPO member 1-0008-04-000-00 date of 07 September 2004

1.3 Type of Assessment

1.3.1 Scope of Assessment Palm oil Mill and Estate

1.3.2 Type of certificate Single

1.3.3 Company names listed in the certificate PT.Bersama Sejahtera Sakti

1.3.4 Number of management unit 1 (one) unit of Palm Oil Mill (Gunung Aru POM) which

receives FFB supply from 4 (Four) unit estates: they

are, Gunung Aru Estate (GAE), Gunung Kemasan

Estate (GKE), Laut Timur Estate (LTE) and Pantai

Timur Estate (PTE).

1.4 Locations of Mill, Plantations and Area Statement

1.4.1 Location of Mill

Name of Mill Location

GPS

Latitude Longitude

Gunung Aru POM Village of Betung, Sub District of Pulau Laut Timur, District of Kotabaru, Province of South Kalimantan

3° 30' 13,178" 116° 09' 46,728"

mailto:[email protected]

http://www.simedarby.com/


ASSESSMENT REPORT


1.4.2 Location of Supply Base

Name of Supply Base

Location GPS

Latitude Longitude

Gunung Aru Estate Village of Betung, Sub District of Pulau Laut Timur, District of Kotabaru, Province of South Kalimantan

3° 30' 13"- 3° 38' 6" LS

116° 09' 48" – 116° 15' 39"BT

Gunung Kemasan Estate

Sub District of Pulau Laut Timur, District of Kotabaru, Province of South Kalimantan

3° 30' 13"- 3° 38' 6" LS

116° 09' 48" – 116° 15' 39" BT

Laut Timur Estate Sub District of Pulau Laut Timur, District of Kotabaru, Province of South Kalimantan

3° 30' 13"- 3° 38' 6" LS

116° 09' 48" – 116° 15' 39" BT

Pantai Timur Estate Sub District of Pulau Laut Timur, District of Kotabaru, Province of South Kalimantan

3° 30' 13"- 3° 38' 6" LS

116° 09' 48" – 116° 15' 39" BT

1.4.3 Tenure

Private - Ha

State 13,775.33 Ha

Community - Ha

1.4.4 Area Statement

Total area 13,775 Ha

Mature area 11,584 Ha

Immature area 998 Ha

Mill 35 Ha

Infrastructure 463 Ha

Emplacement 128 Ha

Nursery 20 Ha

Ocupation 71 Ha

Others 476 Ha

HCV area 983 Ha

1.5 Description of Supply Base

1.5.1 Description of Mill

Name of Mill Capacity

(tonnes/ hour)

FFB Processed

(tonnes/ year)

CPO Palm Kernel PKO

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Gunung Aru Mill 40 245,922 56,050 22.79 11,560 4.70 - -

*Source Production Data on April 2012 –March 2013

1.5.2 Description of Estate(s)

Name of Estate(s) Total Area

(Ha)

Planted Area (Ha)

FFB (tonnes/year)

Yield (tonnes/ha/year)

Supplied to Mill

FFB (tonnes/year)

%

Gunung Aru 3,233 2,952.12 38,979 13.2 38,979 100

Gunung Kemasan 3,726 3,267.55 52,576 16.1 52,576 100

Laut Timur 3,478 3,268.41 78,798 24.1 78,798 100

Pantai Timur 3,338 3,093.49 75,569 24.4 75,569 100

Total 13,775 12,581.57 245,922 19.5 245,922 100

*Source Production Data on April 2012 –March 2013


ASSESSMENT REPORT


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)

%

N/A N/A N/A N/A N/A N/A N/A

*Gunung Aru POM does not received FFB from other sources or smallholders

1.5.4 Product categories FFB/CPO/PK/PKO

1.6 Dates of Plantings and Cycles

1.6.1 Age profile of planted palms*

Tahun Tanam LUAS

Gunung Aru (Ha)

Gunung Kemasan (Ha)

Laut Timur (Ha)

Pantai Timur (Ha) Total (Ha)

1987 409.34 - 409.34

1988 247.34 - 247.34

1989 449.11 150,22 599.33

1990 417.53 622,24 1,039.77

1991 387.25 865,01 1,252.26

1992 266,11 543,76 809.87

1993 144,07 163,70 307.77

1994 20.58 141,24 777,89 939.71

1995 - 122,33 540.11 662.44

1996 188,98 1.128,44 1.088.08 2,405.50

1997 49,61 253.91 303.52

1998 45,43 421,15 466.58

1999 217,12 217,12

2000 258,23 106.17 364.40

2003 - 16,53 121.21 137.74

2005 72,20 54,62 104.78 231.60

2006 - 452.56 452.56

2007 - 426.67 426.67

2010 270.55 - 270.55

TOTAL 2,201.65 3,020.45 3,268.41 3,093.49 11,584.07

1.6.2 New Planting area after November 2005 - Ha

1.6.3 Planting Cycle 1st and 2nd Cycle (25) Years

1.7 Approximate Tonnage Certified

1.7.1 Past Annual Claim Certified Product

FFB Production 245,922 Tonnes/year

CPO Production 56,050 Tonnes/year


ASSESSMENT REPORT


Palm Kernel (PK) Production 11,560 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)

Gunung Aru 3,233 2,952.12 31,723 10.75

Gunung Kemasan 3,726 3,267.55 47,542 14.55

Laut Timur 3,478 3,268.41 76,432 23.39

Pantai Timur 3,338 3,093.49 70,972 22.94

Total 13,775 12,581.57 226,669 18.02

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 (%)

Gunung Aru POM 40 226,669 52,700.62 23.25 11,333.47 5.0 - -

1.8 Other Certifications

1.8.1 ISO 9001:2008/ISO 14001: 2004 -

1.8.2 OHSAS 18001:2007 -

1.8.3 HACCP -

1.8.4 Others -

1.9 Time Bound Plan for Other Management Units

Time Bound Plan MINAMAS Plantation – SIME DARBY Group, status as per December 2011

MINAMAS Plantation – SIME DARBY Group has committed to make time bound plan for other units under the

management in implementing P&C standard or acquiring RSPO certificate. Auditor team has considered the plan in

accordance with RSPO Certification System documents - June 2007 for partial certification. Progress and follow-up of

this plan will be verified and reported in the annual routine visit.

Certification Status Number of Strategic Operating Units (SOUs) Remark/Details

Malaysia Indonesia

Certified 33 15 Certified

EB Review 6 5 EB Review

Audited 0 5 Audited

Total SOUs 39 22 Total SOUs

Management Unit Location

Hectarage (Ha)

Time Bound Plan

Status Mills Estates

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

7,734.60 2009 Certified

2010

Manggala PT. Tunggal Mitra District of Rokan Hilir – Province of Riau 13,836.00 2009 Certified


ASSESSMENT REPORT


Plantations 2010

Bukit Ajong PT. Sime Indo Agro District of Sanggau – Province of West Kalimantan

11,652.00 2009 Certified

2010

Teluk Siak PT. Aneka Inti Persada

City of Pekanbaru and District of Siak – Province of Riau

11,134.00 2010 Certified

2011

Sungai Pinang

PT. Bina Sains Cemerlang

District of Musi Rawas – Province of South Sumatera

6,513.00 2010 Certified

2012

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

14,779.92 2010 Certified

2011

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

16,601.66 2010 Certified

2011

Alur Dumai PT. Lahan Tani Sakti District of Rokan Hilir – Province of Riau 3,759.02 2010

Certified 2012

Teluk Bakau PT. Bhumireksa Nusasejati

District of Indra Giri Hilir – Province of Riau

25,662.00 2010

Certifed 2011

Mandah 2013 -

Mustika PT. Sajang Heulang District of Tanah Bumbu – Province of South Kalimantan

7,794 2012

Certified 2011

Angsana Mini Full Manage Plasma (KKPA)

16,000 2010

Certified 2011

2013

Audited 2013

Angsana PT. Ladangrumpun Suburabadi

District of Tanah Bumbu – Province of South Kalimantan

6,077.00 2010 Certified

2011

Gunung Aru PT. Bersama Sejahtera Sakti

District of Kotabaru – Province of South Kalimantan

12,704.54 2010 Certified

2011

Ladang Panjang

PT. Bahari Gembira Ria

District of Muaro Jambi – Province of Jambi 1,202.04 2010

Certified 2012

Bebunga PT. Langgeng Muaramakmur


16,361.77 2011 Certified

2012

Pondok Labu PT. Paripurna Swakarsa


14,892.00 2011 Certified

2012

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

10,361.18 2011 Certified

2012

Rantau

PT. Laguna Mandiri

District of Kotabaru – Province of South Kalimantan 15,299.80

2011 Certified

2011

Betung 2013 -

Ungkaya PT. Tamaco Graha Krida

District of Morowali – Province of Central Sulawesi

4,145.00 2011 Certified

2012

Rantau Panjang

PT. Guthrie Pecconina Indonesia

District of Musi Banyuasin – Province of South Sumatera

10,139.91 2011 Certified

2012

Lembiru PT. Sandika Natapalma

District of Ketapang – Province of West Kalimantan

8,406.21 2011 Audited

2011

PT. Budidaya Agrolestari

District of Ketapang – Province of West Kalimantan

2011

Audited 2011

MAS PT. Mitra Austral Sejahtera

District of Sanggau – Province of West Kalimantan

8,741.29 2011 Audited

2011

Blang SImpo PT. Perkasa Subur Sakti PT. Padang Palma Permai PT. Perusahaan Sri Kuala

District of Aceh Tamiang and District of Aceh Timur- Province of Nanggroe Aceh Darussalam 6,451.99

1,128.90 2011

Certified 2013

Sime Darby has been certified on all 39 units management in Malaysia and 21 units management in Indonesia. There is a change Time Bound Plan that caused the company delay the certification process as follow :

1. PT Mitra Austral Sejahtera. There are unresolved problems (issues) social. Palm Oil Farmers Union (SPKS)


ASSESSMENT REPORT


Sanggau have not yet agreed the demands of society and improvement of conflict resolution in accordance with RSPO principles and criteria.

2. PT Sandika Natapalma and PT Agro Lestari have been assessed in June 2011, but there are some noncompliance that must be resolved related to regulatory compliance.

Sime Darby has informed the Time Bound Plan and Mutuagung has considered that Sime Darby still meet the requirements of the RSPO for Partial Certification


ASSESSMENT REPORT


2.0 ASSESSMENT PROCESS

2.1 Certification Body

PT Mutuagung Lestari

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

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

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

2.2 Assessment Team

2.2.1 Lead Assessor and Assessment Team

ST-2 1. Aryo Gustomo (Lead Assessor). 2. Muhammad Noor Efansyah (Assessor). 3. Henry Marpaung (Assessor). 4. Marsudi Eko Santoso (Assessor).

S-1 1. Oktovianus Rusmin (Lead Assessor Witnessed). 2. Octo H.P.N Nainggolan (Lead Assessor). 3. Ibnu Satria Prabudi (Assessor). 4. Rudi Ramdani (Observer).

S-2 1. Deni A. Novendi (Lead Auditor). Bachelor of Forestry majority for Natural Resources Conservation special in ecology and social. He involved in study of social economy of Citanduy-Cisanggarung watershed, Ciamis District, Province of West 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 Custody, ISO 9001 and RSPO. He had audited of each certification scheme for several companies in Indonesia. In this assessment surveillance 2, he focused on environmental aspects, peat management and HCV management.

2. Marsudi Eko Santoso (Auditor) was in the previous assessment team member 3. Yudwi Wisnu Rahmanto (Auditor). Bachelor of Forestry with sivil culture background. He has attended in

selected training, such as Auditor/Lead Auditor Course Quality Management System (QMS) ISO 9001:2008, Timber Legality Assurance System (SVLK), Verification Organization Training C.A.F.E Practices (Starbucks), Organic Standard (EU, NOP, JAS), Forest Stewardship Council (FSC), Program Endorsement of Forest Certification (PEFC) and Organic Exchange for Textile. He also has experience as an auditor and involved in certification program auditing, such as Sustainable Forest Management by FSC FM/COC Scheme, Coffee And Farmer Equity (C.A.F.E Practices) Starbucks, Sustainable Palm Oil by RSPO Scheme, Organic Standard (EU, NOP, JAS) for Coffee Farmer and Organic Exchange for Textile. Currently, he worked at Professional Certification Body and assigned to verify in Social aspect during this Assessment (S2).

4. Siti Jamilah (Observer). Master of Agribusiness Management, Bogor Agricultural University. She had experience as quality control in Food Manufacture, export supervisor in agriculture trading and technical expert in Consultant company. She had followed training such as Awareness RSPO, Indonesian Sustainable Palm Oil auditor, food safety – HACCP and enterprise risk management.

2.3 Assessment Methodology, Assessment Process and Locations of Assessment

2.3.1 Figure of person days to implement assessment

S2 Number of auditors : 3 auditors Number of days for S-2 at site : 4 days Number of working days for S-2 at site : 12 Working days

2.3.2 Detail process of assessment

S1 The assessment was conducted by measuring the sufficiency of implementation with the consistency done by the Bersama Sejahtera Sakti (BSS) 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 Supply Chain

http://www.mutucertification.com/

mailto:[email protected]


ASSESSMENT REPORT


Requirement for CPO Mill. The assessment was conducted in three methods: (1) document review, aiming to observe the sufficiency of types or substances from required documents; (2) interview, aiming to obtain more detailed information and cross check the information; and (3) field check, aiming to observe directly the sufficiency of implementation on site. All information obtained was recorded in Check List of PT Mutuagung Lestari (MUTU) and became the main annex of Assessment Report.

S2 The assessment was conducted by measuring the sufficiency of implementation with the consistency done by the PT.Bersama Sejahtera Sakti 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 information; and (3) field observation, aiming to observe directly the sufficiency of implementation on site. Some opportunities for improvement of the results S-2 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-2 assessment. All information obtained was recorded in Check List of PT Mutuagung Lestari (MUTU) and part of S-2. The assessment program please find Appendix 2

2.3.3 Locations of Assessment

S-1 1. Location 1, Gunung Aru Palm Oil Mill. Observes the FFB processing and OHS implementation, hazardous and hazardous waste warehouse.

2. Location 2, Waste Water Treatment Plant. Observes the land application and waste water processing. 3. Location 3, HGU pole No.16 at block KK47 and pole No.61 at block JJ47, Pantai Timur estate.

Observes related to land use right pole maintenance. 4. Location 4, Hazardous waste warehouse at Laut Timur estate. Observes and interview with

warehouse officer related hazardous waste management. 5. Location 5, Chemical warehouse at Laut Timur estate. Observes and interview with warehouse officer

related to material safety implementation. 6. Location 6, Workshop and Diesel fuel tank at Laut Timur estate. Observes related to OHS

implementation and contamination management. 7. Location 7. Replanting at block C3 and D3 at Gunung Aru estate. Observes related to replanting

method and zero burning implementation. 8. Location 8, Fire Brigade and emergency response team at Laut Timur estate. Observes and

interview with firefighting officer related to preparedness of emergency response equipment. 9. Location 9. Bukit Kemasan HCV area at block D36 and D40, Gunung Aru estate. Observes and

interview with HCV officer regarding HCV 1.1 management and monitoring. 10. Location 10. Sungai Batak HCV area at block HH47, Pantai Timur estate. Observes and interview

with HCV officer regarding HCV 4 (riparian and buffer zone) management and monitoring. 11. Location 11. Sajakah village at Laut Timur estate. Interview with village peoples of Sajakah village

related to company social responsibility, work opportunity to village community, communication mechanism and customary rights.

12. Location 12. Tanjung Pengharapan village at Pantai Timur estate. Interview with village peoples of Tanjung Pengharapan village related to company social responsibility, work opportunity to village community, communication mechanism and customary rights

S-2 The locations in this certification activity are 1 POM with four Estates, which supply the raw material (FFB), namely the Gunung Aru Estate, Gunung Kemasan Estate, Laut Timur Estate and Pantai Timur Estate. In conducting the


ASSESSMENT REPORT


assessment, the team of auditors used the 0.8√y formula to determine the management units sampling to be focused on and also considered the issues raised by stakeholder. Based on this formula, the team of auditors determined that the estates sampling locations are two estates which are Gunung Aru POM, Gunung Kemasan Estate and Pantai Timur Estate. 1. Location 1 - Hazardous Waste Storage Gunung Aru Factory. Observation, recording and symbol of

hazardous waste. Interview with officers regarding to clinical and domestic waste handling

2. Location 2 - Diesel Tank Gunung Aru Factory. Observation of handling and and prevention of contamination of

into environment. Diesel tank at POM is under construction of canopy installation.

3. Location 3. Waste Water Treatment Plant. Observation of handling and utilization liquid waste. Interviews with

officers WWTP about recording, pond capacity control, environmental parameters control, and prevention of

leakage or seepage uncontrolled.

4. Location 4- Block O3 Gunung Kemasan Estate. Observation of soil erosion monitoring sites. Interview with

Assistant Division and HCV Officer about monitoring and recording according frequency set.

5. Location 5 – Block V 02 Pantai Timur Estate . Observation of riparian management as HCV area. Interview

with Assistant Division Officer HCV about rehabilitation effort through continuous planting, and make sure there

are no chemical applications in surrounding area.

6. Location 6 - Block II 39 Pantai Timur Estate. observation of areas management that have slopes greater than

40%. Interview with Assistant Division with regard to management and conservation measures in the area.

7. Location 7 . Block Q3 and Q 4 Gunung Kemasan Estate. Observation in replanted areas related with zero

burning and efforts of covering land to prevent soil erosion. Interview with Assistant Division related to the

duration of the land clearing and the efforts to prevent soil damage during land clearing.

8. Location 8. Workshop Central PTE, Office PTE Division II. Observations related OHS (Occupational Health

& Safety) , PPE (Personal Protective Equipment), availability Oil Trap, firefighting facilities, logo / symbol and Oil

Waste management of vehicle repair.

9. Location 9- Genset Storage, Office PTE Division II. Observations related to the availability Oil Trap that

managed responsibly and use of PPE (ear muff) for the operator.

10. Location 10 - Block Spraying System (BSS), Division II PTE. Observation of chemical management, spray

equipment, facility and infrastructure spraying, washing of spray equipment and laundering the water and the use

of symbol and logo hazardous waste

11. Location 11 - Emplacement and Child Care, Division II PTE. Observations of employees emlacement (old

and new) and Child Care.

12. Location 12 - Polyclinic unit, Division II PTE. Observations related to the handling of infectious waste /

medical clinic and eligibility conditions.

13. Location 13 - Waste Landfill (TPAS) Domestic, Block E39 or D025 Division II PTE. Observation of domestic

waste management.

14. Location 14 - Diesel tank and Chemicals storage, PTE. Observations related to logos and symbols hazardous

waste, early detection equipment of emergency conditions and chemical disposition.

15. Location 15 – BPN Boundaries Pole No 17 Block Z33Division II and No. 8 Block W3 Division III GKE.

Observation of maintenance and availability of the boundaries around PT BSS area.

16. Location 16 - Block Q4 GKE. Observation of low areas with drainage management system CECT (Closed

Ended Conservation Trenches).

17. Location 17 - Blok O3 GAE. Observation and interviewt about land application

18. Location 18 - Block W11 GKE. Observations of riparian area management Bekambit river that have managed

well (perennials planted and Buffer zone area 50 M).

19. Location 19 - Block W16 GKE. Observation and interviews with senior assistant about erosion rate

measurements with pole erosion. Observation oblique area management with selective weeding, Neprolephis

and midrib.


ASSESSMENT REPORT


20. Location 20 - Block W13 GKE. Observation and interviews about the use of PPE, riparian areas that should not

be sprayed (for example in block W 11), training spray (specific pesticides), safety training, health checks, first

aid emergency box, handling poisoning emergencies, wages, reproductive rights, protection sexual harassment,

gender committee and workers' insurance.

21. Location 21 - Block V 4 GKE. Observation and interviews with foremen and workers about crops technique and

use of PPE, wages, premiums harvest, fines for raw and left fruit, harvest quality by the foreman and office clerk,

SPSI, employee grievance, risk labor and accidents.

22. Location 22 - Block R 5 GKE. Observations and interviews with drivers and loaders about OHS implementation

and driver's license (SIM). Suh as on driver's license Type II, on behalf of Hermami No. 860 618 200 24

23. Location 23 Block R 17. Observation of low areas with drainage management system CECT (Closed Ended

Conservation Trenches).

24. Location 24 Block R10. Observation of owl nests. At the time of observation found an owl.

25. Location 25 Batu Tunau village , interviews with community leaders regarding the benefits of the company's

existence, social issues, land conflicts and CSR

26. Location 26 Sejakah village, interviews with community leaders regarding the benefits of the company's


27. Location 27 Bekambit village, interviews with community leaders regarding the benefits of the company's


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.Bersama Sejahtera Sakti 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.Bersama Sejahtera Sakti

2.4.2 List of stakeholder contacted

Please find appendix 3

2.5 Determining Next Visiting

The next visit (S-3) will be determined one year after this S-2 (March 2013).


ASSESSMENT REPORT


3.0. ASSESSMENT RESULT

3.1. Summary of Assessment Report of the RSPO Certification

MUTUAGUNG LESTARI has conducted an assessment of Gunung Aru POM - PT Bersama Sejahtera Sakti, MINAMAS Plantation – SIME DARBY Plantation operation consisting of one (1) mill and four (4) oil palm estates. During the assessment, there were one (1) nonconformity was assigned against Major Compliance Indicator one (1) nonconformity was assigned against Minor Compliance and eleven (11) opportunities 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 actions taken that consist of one (1) Major non-conformity and one (1) Minor non-conformity had been closed out shall be verified during next assessment.

MUTUAGUNG LESTARI found that Gunung Aru POM - PT Bersama Sejahtera Sakti, MINAMAS Plantation – SIME

DARBY Plantation Sdn Bhd 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 .

Therefore MUTUAGUNG LESTARI Recommends RSPO Certification of compliance is maintained.

Ref Std.

VERIFICATION RESULT of MUTU-Certification

PRINCIPLE #1 COMMITMENT TO TRANSPARENCY

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

Referring to SOP No. 034/BSS-SOP/10 on April 1st, 2010, the company uses Register book of Incoming Mail to record information order and Outgoing Mail Register to record all responses to information orders. This document specifies date, subject, from/to, and statement of follow-up. Based on this document, in April 2012-March 2013 (after surveillance-2), there was no incoming mail about information order. Most of the received incoming mails were order for assistant, notification, or invitation. “Statement of Follow-up” column in Incoming Mail Register document was used to record company’s responses to received incoming mail. However, the given information was insufficient to track its letter of response which recorded in Outgoing Mail Register. The example of incoming mails that could not be traced in Outgoing Mail Register are listed below:

On 4/13/2013 – No. B/220/04012 – concerning Follow Up of Work Accident Report – from JAMSOSTEK(Social Assurance of Labor);

On 7/31/2012 – No. 24/IX/KDB/PLT/12 – concerning Heavy Equipments (Grader and Compactor) Loan Application – from Bekambit Village, Pulau Laut Timur Sub District;

On 10/7/2012 –– Head LT Kindergarten– Premium teacher application;

On 1/25/2013 – Number DBT/plt/I/2013 – Batu Tunau Village–Transportation Loan Application;

On 1/15/2013 – Number 094/Kp-TP/I/2013 – Tanjung Pengharapan Village – Application for stone road spreading.

SOP No 034/BSS-SOP/2010 point 5.8 explains that the shelf life of order document and information responses is five years. It has been implemented, proved by retrieval document that can be represented, as follow:

Incoming Mail Number: 003 TK-TA/XI/2009 dated November 28th, 2009 – concerning Application for


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Operational Fund in Education – from Tunas Asri Kindergarten;

Incoming Mail Number 089/DSJ/VIII/2009 dated August 27th, 2009 – concerning Application for Material Donation for the Construction of Multipurpose Building and Mosque – from Sejakah Village, Pulau Laut Timur Sub District.

Letter Number 37/IX/KDB/2010 dated May 2nd, 2010 – concerning Heavy Equipments Assistant– from Bekambit Village, Pulau Laut Timur Sub District.

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.

Point 4 in SOP No. Policy: 301/BSS – DOC-01/11 explains that the type of information provided for public is legal document (such as Location Permit, IUP/ Plantation Operation License, Certificate of HGU/ Land Use Permit), environmental management (such as EIA document, Environmental Management Plan/ Environment Monitoring Plan, HCV/High Conservation Value management), Policy and Manual of Company employment (such as Occupational Health and Safety Program), and social management program. Routine information submissions according to the valid regulation (reporting to related institution) have conducted, such as:

- Monthly report of employment insurance realization to JAMSOSTEK (Social Assurance of Labor) of Kota Baru Regency – Last report for March 2013 was submitted on 4/15th/2013;

- Quarterly report of employment (Occupational Health and Safety Guiding Committee) – to the Labor Agency of Kota Baru District – Last report through the letter number 01/P2K3/IV/2013 dated 15/4/2013 was submitted on 4/15th/2013;

- Quarterly report of B3 (Hazardous Material Waste) Evaluation to Environmental Agency of Kota Baru Regency – Last report was submitted on April 23rd, 2013 through the letter number 385/GAF-BLHD/IV2013;

- Semester report of RKL/RPL Implementation to Environmental Agency of Kota Baru Regency–First semester report was submitted on 9/20th/2012 and Second semester report was submitted on 4/17th/2013.

SOP No 034/BSS-SOP/2010 Chapter 5.8 determine that the shelf life of order and information response is five years (for at least) and the company able to show its implementation evidence such as report which similar with above document for period of June 2009.


PRINCIPLE #2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

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

PT BSS has document entitled “The Summary of Rules and Regulations which Related with Company”, which specify the evaluation result of article of each valid rule and regulation related with the operation of plantation and palm oil plant. It covers the rule of land tenure legality, environmental management rule, employment rule and rule of palm oil cultivation. This document has been improved on April 23rd, 2013 by adding several related rules, such as:

(1) Social, Manpower, and Transmigration Agency Rule Number 560/092/Disosnakertrans dated January 16th, 2013 concerning Sectoral Minimum Wage; and

(2) Government Regulation (PP) No. 50 year 2012 concerning the Implementation of Management System of Occupational Health and Safety.

A number of implementation evidences to the valid rules and regulations such as valid HGU document, document of test result and environmental parameter monitoring, document of management licensing, and the use of waste, the use of Personal Protective Equipment (PPE) and record of work accident, social security payment, and evidence of proper wage payment can be shown during the audit process.


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

PT BSS has the legality of land control and concessions namely a total of HGU (Land Use Permit) as many as 12,740.54 Ha. In 2006 and 2009, PT BSS applied for revision of area circumferential measurement of 1,180 Ha. This area is in included in HGU (Land Use Permit) Certificate number 62, year 2004 which covers 1,100 ha and it valid to December 10th, 2039. However, until the implementation of second surveillance, there was no response yet from BPN (National Land Agency) of South Kalimantan Province related with this Application of Measurement Revision. PT BSS has legal evidence/legal area boundary signs which demarcated clearly and well maintained. Gunung Kemasan Estate (GKE):

A memorial book of HGU (Land Use Permit) of PT BSS for GKE in Bekambit Villageand Sejakah Village, Pulau Laut Timur Sub District, Pulau Laut Regency, South Kalimantan Province was issued by BPN (National Land Agency) of South Kalimantan Province, Measurement and Mapping Survey Sector in 2007. In addition, map of HUG stakes installation layout with the scale of 1:60,000 shows that HGU boundary markers are distributed in GKE area. There are 14 large stakes and 84 small stakes, total stakes is 98. This memorial book also list the coordinate point of HGU stakes location that have been measured, calculated, and legally determined.

GKE has a program of HGU boundary markers maintenance for 2012-2013period. There are several activities in this maintenance program such as: manual and chemical cleaning of area around boundary markers, repainting and renovation. Up to the second surveillance process, there were 14 large stakes and 84 small stakes (total 98 stakes) have been maintained. The documentation evidence in the form of photograph and inventory data of boundary markers maintenance showed that all boundary markers in this area were in good condition and well maintained. There were only 2 small stakes in oblique condition (BSS 48 and BSS 50).

Pantai Timur Estate (PTE):

A memorial book of HGU (Land Use Permit) of PT PTE for GKE in Batu Tunau Village and Tanjung Harapan Village, Pulau Laut Timur Sub District, Pulau Laut Regency, South Kalimantan Province issued by BPN (National Land Agency) of South Kalimantan Province, Measurement and Mapping Survey Sector in 2007. In addition, map of HUG stakes installation layout with the scale of 1:60,000 shows that HGU boundary markers are distributed in PTE area. There were 18 large stakes and 108 small stakes (total 125 stakes). This memorial book also list the coordinate point of HGU stakes location that have been measured, calculated, and legally determined.

PTE has a program of HGU boundary markers maintenance for 2012-2013 periods. There are several activities in this maintenance program such as: manual and chemical cleaning of area around boundary markers, repainting and renovation. Up to the second surveillance process, there were 33 large stakes and 161 small stakes (total 194 stakes) have been maintained. The documentation evidence in the form of marker boundaries maintenance photograph and inventory data of marker boundary showed that 4 large stakes and 51 small stakes were gone. PTE management plan to replace these gone stakes in May and 2013.

PT BSS has procedure and mechanism of conflict resolution to the third party both related with land owner and other, those are:

1. SOP of Conflict Resolution (No. 43/SOP-PK/BSS/12,dated February 12th, 2011). 2. SOP Land Claim (No. 035/BSS/-SOP/10, dated October 5th, 2010).

Based on the minutes of meeting in 02/2012 about the progress of work and problem of palm oil smalholders plantation project development by PT BSS, there was a claim from Hj. Alfisah who own 221 Ha areas in PTE. For this case, according to the result of deliberation process, team recommended that that ex-gratia and replacement area (221 Ha) will be given to her. This replacement area will also be involved in smallholders program. On January 31st, 2013, there was a meeting about Palm Oil Plantation Development Project held by PT BSS and KUD BSM. One of the meeting results is: PT BSS should immediately solve Hj. Alfisah’s case in PTE so the permit for smallholders’ development can be immediately signed by the Regent of Kotabaru Regency. There was a reply from the Regent of Kotabaru Regency


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number 525/138/DISBUN/2013 dated March, 19th, 2013 concerning Follow Up of Land Problem which contains:

1. PT BSS should immediately pay the compensation to this replaced land (221 Ha) in accordance with the agreement.

2. PT BSS should immediately report the development of this replaced land (221 Ha)

In addition of this dispute land, PT BSS also still keep the land clearing documents on behalf of Darkasi Latif. These documents consist of:

Minutes of meeting of deliberation on May 17th, 2004 between Darkasi Latif and PT. BSS noticed by the Head of Pulau Laut Timur Sub District and Head of Batu Tunau Village.

Statements on behalf of Darkasi Latif on May 17th, 2004 concerning the agreement of PT BSS to solve the compensation of this land case and plants on it (15 Ha) which situated at DD. 42 – 43. This statement was noticed and signed by the Head of Pulau Laut Timur Sub District and Head of Batu Tunau Village.

A receipt of compensation payment worth Rp. 52.000.000 for the finishing of land case and plant in 15 ha area which situated in Batu Tunau Village, Pulau Laut Timur Sub District, Kotabaru Regency.

A receipt of payment form PT. BSS to Darkasi worth Rp. 52.000.000 for the compensation of 15 Ha land, in July 2004.

ID card (KTP) on behalf of Darkasi Latif who live inTunau Village, Pulau Laut Timur Sub District, Kotabaru Regency.


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.

In the area of PT. BSS plantation, there was no tenure land. It is also proved by the letter from National Land Agency of Kota Baru Regency on June 23th, 2010that land in Kota Baru Regency does not have a regulation that regulate the status of communal land right/tenure right. Related to this point, all HGU (Land Use Permits) which issued by National Land Agency and/or during the process of its right, do not have communal land right/tenure right.

Based on the document of HCV (High Conservation Value) Identification by PT. BSS, palm oil plantation area owned by PT. BSS has important function for the identification of local community culture such as the Grave of Ancestor of Community in Sungkai Village. This area is used for HCV 6.


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.

PT BSS shown financial plan for budget 2013/2014 and projection for 3 years in 2014/2018. Company also has a financial management policy that valid for all estate in PT BSS. The plan has consider financial indicator both internal and external factor, as follow : a. Internal factor

Fixed cost include production cost for estate admin , roads & bridges and labor

Direct cost include production cost for mature upkeep, manuring, harvesting & collection and transport

Capital expenditure include production cost for maintain immature and new / re planting, and nursery.

b. External factor

Price increase includes commodity, diesel fuel, gasoline, wages and transportation.

Investation both new and replace

Exchange rate of dollar and ringgit

New planting for mature plant until July 2015


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Determining HCV area

As an example in Pantai Timur estate, budgeting plan year 2012/13 and projection 2014/2014 was made by estate manager and approved by General Manager. In the report described production projection (ton), yield (ton), nursery and production cost. Production trends in 3 years are decrease but nursery is increase. It cause the company have replanting programs. Company has long range replanting program period 2010-2030. The seeds for replanting had been supplied from Marihat Palm Research Center but nursery location in Pantai Timur Estate, after that the seed distribute to all estate.

a. In Gunung Aru Estate, replanting program has begun in 2009. There is available annually projection until 2018/2019 and map of replanting program. In 2010/2011, thre is no replanting because realization replanting program in 2009/2010 had late so the program continued in 2010/2011.

b. In Gunung Kemasan estate, replanting program began in 2012/2013. There is available annually projection until 2023/2024 and map of replanting program. Progress of replanting until March are 198 Ha and 29,12 pokok. It will be finish at May 2013.

c. In Pantai Timur estate, replanting program will begin in 2014/2015. There is available annually projection until 2022/2023 and map of replanting program.

d. In Laut timur estate, replanting program will begin in 2014/205. There is available annually projection until 2027/2028 and map of replanting program.

Years Gunung Aru

estate (Ha)

Gunung kemasan estate (Ha)

Pantai Timur estate

(Ha

Laut Timur Estate (Ha)

2009/2010 270.56

2010/2011 No replanting

2011/2012 326.62

2012/2013 423.47 247.10

2013/2014 400.48 489.22

2014/2015 250.21 363.87 252 372.53

2015/2016 449.11 383.95 276 402.28

2016/2017 417.52 349.56 276 369.38

2017/2018 270.57 383.12 256 341.16

2018/2019 137.26 115.35 234 185.25

2019/2020 231.21 192 266.54

2020/2021 224.39 250 238.32

2021/2022 357.48 210 128.82

2022/2023 235.09 164 164.14

2023/2024 120.50 189.25

2024/2025 188.10

2025/2026 78.45

2026/2027 178.98

2027/2028 165.22

Total 2,945.80 3,500.84 2,109 3,268.41


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

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

Gunung Aru POM, PT.BSS has procedures from Fresh Fruit Bunch entrance, processing, to dispatch CPO (Crude Palm Oil) & PKO (Palm Kernel Oil) for operational activity of Palm Oil Plant which approved on July 26th, 2010 by Head


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Plantation Operations (HPO). These procedures contain:

1. SOP No.110/POD-FAC/07, Chapter I concerning The Basics of Palm Oil Processing such as Fruit Acceptance (1.1), Sterilization (1.2), Striping (1.3), Digesting (1.4), Pressing (1.5), Clarification (1.6), Separation of Seed and Fiber (1.7), Kernel Station (1.8), Chapter II. Hoarding of Oil and Kernel Oil. Palm Oil Stockpiling (2.1), Laboratory Management (5.9), Steam Boiler (6.1), Power Plant Engine (6.2), Types of Machines (6.3), Occupational Health and Safety(6.10), etc.

2. SOP No.130/POD-FAC/07. Chapter I, concerning The Basics of Palm Oil Processing such as General Explanation (I), Organization of Palm Oil Mill (II), Administration Procedure of Palm Oil Mill Operation (III), Administration Procedure of Palm Oil/Crude Palm Oil or IKS/Palm Kernel Oil Delivery (3.3).

There are several operational management and monitoring conducted by BSS, such as: 1. Plantation Adviser’s Report in GKE, monitoring was conducted on August 11th – 13th, 2012 No.

MINAMAS/GKE/01/2012-13. Next visit will be in May 2013. 2. Plantation Adviser’s Report in PTE monitoring was conducted on October 27th – 29th, 2012 no.

PAR/MINAMAS/PTE/01/2012-13. Next visit will be in June 2013. 3. Mill Advisory Report in Gunung Aru POM on September 26th – 28th, 2012 No. Minamas/GAF/01/12-13, which

explains issue and observation of mill operation activity and recommendation of repairmen as well as follow up repairmen. On March 11th-14th, 2013 (based on the Performance Quality Report in Gunung Aru POM 2012/2013 and signed by Yeo Chai Seng).

The company also periodically records all operational activities both in plantation or mill. It is conducted every month and the result of this operational activity is written in Monthly Report of Plantation Unit made by Estate Manager and Report of Mill Unit made by Palm Oil Mill manager. For example: 1. Monthly Report Document of Palm Oil Mill in March 2013 explains the achievement process, maintenance

management, quality management, cost management and inventory stock approved by Gunung Aru Factory/GAF Manager.

2. Report of Management Meeting in March 2013 at GKE and PTE, explains about: Areal statement, structure of organization, crop production, FFB/Fresh Fruit Bunch Production, road maintenance, plant maintenance, fertilizing, replanting, Integrated Pest Control, recapitulation of operational cost and work accident monitoring.


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

Record of Soil Analysis: There is record of soil analysis in the form of Final Report of Soil Survey and Palm Oil Land Suitability Evaluation at Pantai Timur Estate/PTE, in 2010. Based on the result of soil analysis, the type of soil, slope, boundary factor, and management strategy can be identified. Record of Leaf Analysis: Leaf sampling is conducted every year in plantation area. It is intended for analysis. There is a record of routine leaf analysis result in the form of Leaf Analysis Test Report by PT BSS - Gunung Kemasan Estate and Pantai Timur Estate, Period of 2012/2013. The sample was taken in March 2013 while at PTE sample was taken on March 11th, 2013). This document explains about the division, block, number of LSU, wide area, ,year of planting, the number of trees per hectare, type of soil, percentage of Ash, N, P,K ,Mg, CA, and N content. Visual Observation: It is conducted during leaf sampling activity and pest & disease observation activity. BSS has a record of activity implementation to maintain and increase the level of soil fertility, such as: a. Palm oil fertilization is conducted according to the recommendation of fertilization by MRC. Fertilizer used in this

activity is NPK, Kieserite, Rock Phosphate, HBFG (Borate), CCM, dose per tree and wide area of fertilizing at PTE. For example, wide area of DD 32 Block/Field D018 is 30.19 (4,139 palm), NK Blend fertilizer was given according to the recommendation by MRC. The dose is 2.75Kg/palm in the second semester of 2012 (August 2012) while in


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the first semester of 2013, the recommended dose per semester was 2.5Kg/pal and it had been conducted in April 2013.

b. Palm oil fertilization is conducted according to the recommendation of fertilization by MRC. Fertilizer used in this activity is NPK, Kieserite, Rock Phosphate, HBFG (Borate), CCM, dose per tree and wide area of fertilizing atGKE. For example, at Blok B038 (8.07 ha/1,098 palm tree) NK Blend fertilizer was given according to the recommendation by MRC. The dose was2.5Kg/palm (2.745 Kg) in the second semester of 2012 (November 2012) the recommended dose in the first semester of 2013 was 2.5Kg/palm (2.745 Kg) and it had been conducted in April 2013.

c. Land Application at Gunung Aru Estate for 75.6 Ha. Based on the Permit of Land Application number 188.45/296/KUM/2011 dated August 8th, 2011-2016, permitted wide area is 115 ha and block for this application is similar as stipulated in the Permit of Land Application such as Application at Block N3 as many as 683 Flat Bad.

d. Empty fruit bunch application, such as: o Pantai Timur estate Field D002 PTE, planting year in 1996, JJK application was implemented in March

2013 with a doze of 250 kg/palm. o GKE Field B021, planting year in 2005,JJK application was implemented in September 2012 with a doze

of 250 kg/palm.


4.3 Practices minimize and control erosion and degradation of soils.

There is a land map for each plantation unit of PT BSS, such as:

Land Map Unit of Pantai Timur Esate is completed with scale of 1: 25,000; and legend explains the level of soil fertility (S2 – N1 Class). Marginal land is stated with N1 Class suitability (boundary factor is slope/erosion), for example at Block II 39 and HH39 with slope class is 50%. It is determined as conservation area according to the letter from manager dated September 07th, 2012 on No. 034/PTE/GM.Est/IX/2012. Based on the result of measurement in Mature Plant Area wide area of HCV (High Conservation Value) is 29.86 Ha

There is a Map of Marginal Area at GKE with scale of 1: 100,000 which figure the distribution of marginal land (wide area of low –lying area is 978.44 ha).

BSS already has management strategy or area with specific case, such as:

- To minimize erosion and surface run off by maintaining the vegetation through selective weeding, terracing, U shape frond stacking, mulch application by using empty fruit bunches, and crops planting for terrace strengthen (Vetiver).

- Soil fertility improvement by adding mulch in empty fruit bunch for the growth and development of Nephrolepis and soil pH management by adding dolomite.

- Based on the field survey at Block Q02 and Q03 GKE, there was a proof of mining area management such as terracing, JJK application, and legume cover crops cultivation.

- Based on the field survey at Block W17 GKE, there was Siltpit.

BSS also has monitored erosion rate as the evidence in erosion and degradation monitoring effort. It has been effectively conducted accordance with the valid regulation (Government Regulation number 150 year 2000). This monitoring activity is conducted by measuring land erosion by using Erosion Stakes which installed at several sampling points in entire plantation area. Monitoring is conducted every month to record land subsidence by using a tool which installed at this stake. BSS measured this land erosion since August 2010 and its monitoring record has been provided. For example, at Block W.16 with topography of 15 – 30%, there was a decreasing as many as 3 mm (critical value is 9 – 12 mm/10 years) until March 2013. Based on the field observation result, erosion stakes at Block W.16 can be reviewed related with the model of stake. BSS has program of road maintenance. For example, there was road maintenance at PTE Blok AA 42/Field D008 in July 2012 and March 2013 as long as 1,322 meter. Based on the field observation result, the condition of PT. BSS road was good and well maintained. Road was completed with good drainage channel to avoid water inundation. Based on the result of land survey, there was no peat in the working area of PT BSS. Marginal Land and Critical Land in BSS area is sloping land and flooded area. Area with high slope need several


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management actions such as:

- To minimize erosion and surface run off by maintaining the vegetation through selective weeding, terracing, U shape frond stacking, mulch application by using empty fruit bunches, and crops planting for terrace strengthen (Vetiver).


- Based on the field survey at Block Q02 GKE there was a proof of mining area management such as terracing, JJK application, and legume crops cultivation.

- Based on the field survey at Block W17 GKE there was Siltpit

Flooding area with water management (drainage channel construction) was conducted Block R17/ Field B052 GKE and Q04 GKE. Based on the observation result at these two blocks, water management was well conducted so palm oil can grow well. BSS has protected water channel and wet land including riparian such as: the Determination of Riparian Buffer Zone as long as 50 meter, routine monitoring of river water quality and liquid waste from mill, and water monitoring for processing activity at the mill. The organization has a policy to avoid chemical material contamination (pesticide and fertilizer) at the buffer zone and water channel (such as trench). It can be conducted by not spraying pesticide and applying fertilizer around this area. Riparian area should be maintained as Buffer Zone and it should not be opened during replanting.


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

The type of surface water source in area owned by PT. BSS is river water monitoring (Upstream, Middle, and Downstream) at PTE (Batak River and Api-Api River) and at GKE (Bekambit River and Sejakah River). There was no wet area ecosystem like swamp and peat area. This river flow protection has been conducted through:

Determination of riparian area.

Plant planting for erosion barriers, planting in riparian area by using perennials (Sungkai). The sample of record during Sungkai Tree plantation can be found in the document of Planting Realization at High Conservation Value/NKT area. Based on the observation, it was in good and well maintained condition such as Block D032 (Batak River).

Monitoring of river water quality, well used by workers, monitoring well of Land Application. There was a document of river water sampling delivery in the second semester for water in Api-Api River, Batak River, Sejakah River and Bekambit River (inlet, middle area of river and outlet), well used by staffs, monitoring well of Land Application to the Manager of POD Banjarbaru on April 8th, 2013 (No. 033/PTE-POD BJB/IV/2013) an mail delivery to the Laboratory of the Center of Research and Industrial Standardization and Trading on April 3rd, 2013 by covering letter number 152/PO-MGG/IV/2013 (receipt is available).

Receipt of river water monitoring is available (upstream, middle, and downstream) at PTE (Batak River and Api-Api River) and at GKE (Bekambit River and Sejakah River) for the Second Semester of 2012. There is also a data of analysis result. Several parameters were above measuring standard as stipulated in the Government Regulation number 82 year 2001. Class of water I (drinking water), for example is in Batak River, BOD parameter (upstream: was 3.3 mg/l; middle was 3.1 mg/l and downstream was 3.3 mg/l) while the value of NAB was 2 mg/l. It has been evaluated. It might be caused by the initial condition in the upstream area of river that it has BOD index above its measuring standard. When river water flow to plantation area, water quality protection has been conducted (determination of riparian area, prohibition of organic and inorganic fertilizer application in buffer zone, and woody plants planting). Based on the result of field survey at W11 GKE (Riparian of Bekambit River), the company has managed buffer zone well.

The record of this protection is available in good condition. The quality standard used for river water testing has been ensured that it referred to the valid regulation. Currently, river water testing at GKE has been analyzed by using standard as stipulated in SNI.01-0220-1987 (Drinking Water Standard). Meanwhile, standard for PTE and POM was different because it referred to the Government Regulation number 82 year 2001 concerning Appendix for Water Class IITesting (Drinking Water)


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Gunung Aru POM has 5 pools at Wastewater Treatment Plant. Monitoring to BOD of waste water from plant has been conducted by taking its sample of water. Monitoring is conducted every month by the Center of Research and Standardization of Kotabaru Regency, South Kalimantan Province, for example test on March 20th, 2013 in the fifth pool (outlet). This pool is used for water before being flowed to application land. The result of test showed that it still under the standard or regulation (Decree of Environmental Minister number 51 year 1995 concerning Quality Standard of Liquid Waste for Palm Oil Industry). The use of water at Gunung Aru POM is monitored every day and it is written in the document of the Detail of Water Supply Allocation. The monthly budget of water usage is 1,9 M3/ton FFB. BSS use water at Palm Oil Mill for processing activity (boiler and processing) as much as 1,193 M3/ton Fresh Fruit Bunches. In March 2013, Fresh Fruit Bunches processing activity at Palm Oil Mill used water as much as 25,152 M3and there were 19,616 ton of Fresh Fruit Bunches processed. The average use of water is 0.8 M3/ton Fresh Fruit Bunches and it still below planned budget (1.1 M3/Ton).


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

There is a plan to plant beneficial plant. For example, planting plan at PTE in 2013 is Turnera (7,175.3 meter), Cassia 21,525.90 Meter), Antigonon (7,175.30 M). The realizations of planting in July 2012 – March 2013 were Turnera (6,257 meter), Cassia (13,948 Meter), Antigonon (50 M). Based on the SOP, the need of nest box is 1:20 Ha, its occupancy rates is above 50%. As of April 2013, there are 108 nest boxes at PTE. Its occupancy rate was only 30% so nest box has not been added. The monitoring record of Integrated Pest Management/PHT and its training: 1. The document of beneficial plant planting data which describe the realization of planting in July 2012 – March 2013

such as Turnera (6,257 meter), Cassia (13,948 Meter), and Antigonon (50 M). 2. The document of Nest Box Data which describe about Monitoring, the Number of Nest Box, the Number of Egg, the

Number of chicks and Occupancy. For example, in April 2013, the number ofNest Boxes were 108, the number of egg was 10, the number of chick was 5, and occupancy rate (nest box is occupied, it is shown by the mark of prey, bird feathers, dung of bird, egg, and chicks) was 34 nest boxes (31%).

3. The report of fire caterpillar survey by census officers on March 27th, 2013 showed that its attack rate at Block D036 was still below its quality standard.

4. The report of rats survey by census officers on March 4th, 2013 at Block DD 42, the number of tree was 151, the number of attack was 7, and the percentage of attack was 4.64% (still below its economic measuring standard: 5%).

5. The company also shows that the officers have been trained with Integrated Pest Management(PHT) such as Lasmi, Sapiah and Junaidi. They were trained on July 13th – 14th, 2010 at Minamas Research Center.

6. Integrated Pest Management training would be conducted in May 2013 and it was implemented on February 6th, 2013. The participants were 8 census officers and supervisor (recording and photos of this activity are available).

A document of pesticide usage at PTE is available. It inform the toxicity level of pesticide, such as:

The use of Prima Up in July – March 2013 was 1,609.9 Liter, its active material is Glyphosate 480 g/liter, wide area of application was 7,062 Ha, doze was 0.22 l/ha; active material/Ha was 0.11 Kg/ha.

The use of Decis in July – March 2013 was 319 Liter, its active material is Delta metrin as much as 25 g/liter, wide area of application was 1,241 Ha, the use per hectare (0.25 liter), active material/Ha was 6. 42 g/l.


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.


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Based on the result of document study and field survey at chemical warehouse in Pantai Timur Estate and Gunung Kemasan Estate, agrochemical materials used by the company have been registered in the Commission of Pesticide. It was proved by the information in its registration number, such as:

1. Meta-Prima 20 WDG, active material: Metil Metsulfuron; registration number: RI. 1897/8-2008/T 2. BASTA 15 WSC, active material: Ammonium glufosinat. registration number: RI. 1113/1-2008/T 3. Dejavu,active material: Fluroksipir. registration number: RI. 0103012010382.

There is a record on the use of pesticide in the form of program recording and recapitulation of pesticide usage in 2012/2013 at Pantai Timur Estate. In this document, there is information of area where pesticide is applied, wide area of application, rotation of application, type of pesticide, and amount of pesticide. For example: type of activity: spray dish was conducted by Division I in area 1,059.88 Ha. Rotation was conducted for three times in a year (September, December and April),Prima up pesticide was used in this activity and its doze was 0.23 l/Ha. There is a record of spraying team training, for example, spraying team from GKE was trained on April 19th, 2013 subjected MSDS (Safety of Herbicide Usage) and proper spraying technique (right way and right doze). It was attended by 27 participants. There is also another record of spraying team training, for example spraying team from PTE. It was conducted on March 22nd, 2013 subjected Safety of Herbicide Usage and proper spraying technique according to the SOP (Right Way, Right Type, and Right Doze). It was attended by 10 participants. The result of field survey at Gunung Kemasan Estate showed that workers had sprayed according to right doze and target weeds as recommended in the labels. Based on the interview with workers, they were trained about spraying technique PT BSS also has SOP concerning B3 waste and non B3 waste management. This SOP regulates procedure to manage B3 waste and non B3 waste including waste of used pesticide package. PT BSS only manage used pesticide package by temporary store it before being delivered to collector. PT BSS has two licensed B3 waste disposal sites (Number 188.45/449/KUM/2011 and Number 188.45/192/KUM/2010) from the Regent of Kotabaru Regency. Based on the field survey, auditor team assessed that B3 waste management especially used pesticide package was in accordance with the regulation. For example, storage area regulation and arrangement according to its type. In accordance with the policy of company to not use herbicide with Paraquat active material, the company then use herbicide with Glufoosinate ammonium as its active material in accordance with the memo from Head Plantation Operation to all general managers and area manager at Minamas Plantation (Memo No: POD-UM-128/X/2008, dated November 4th, 2008). In the report of pesticide/herbicide usage and storage area in warehouse, there was no herbicide which contain paraquat as its active material and Group 1B pesticide according to WHO. For example Ratgone (Rodenticide has Brodifacum as its active material). Weeds control is conducted by using systemic herbicide such as Prima up (Glyphosate active material) and rats control is conducted by using owls and their natural enemies (snakes and eagles). The company checks the medical health condition of spraying officers every year. There is a record of spraying officers’ medical checkup. Based on the notification from the company doctor, medical checkup will be conducted every 6 months since 2013. The company also has a policy to prohibit pregnant women or breastfeeding women work in area related with chemical material such as spraying and fertilizing. Based on the field study and interview with female workers, they had received socialization about this policy and they understood it. There is a record about prenatal record, for example Marmi (sprayer). She got pregnant on April 6th, 2013 and she is recommended to move to manual maintenance work. There is an approval from assistant to move her. Based on the field survey at Block W13 and interview with all spraying workers at GKE, there was no pregnant women and breastfeeding women work in area related with chemical material.


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

The company has determined and socialized Occupational Health and Safety policy approved by the CEO of Minamas Plantation onJuly5th, 2008, which state: Commitment of company to be responsible to implement Occupational Health and Safety program in all operational


ASSESSMENT REPORT


area in plantation and mill. To realize this goal, the company has determined the procedure of operational activity in all plantation area and mill. It is manifested in the form of regulation for worker Occupational Health and Safety and continuously & sustainable improvement so it can be used to control any risk and management of company business activities. Goals and Targets 1) To protect everyone who get involved in the company activity (Zero accident) and to protect company’s assets. 2) To realize safe and healthy business activity and to improve the awareness of staff for Safety culture. 3) To conduct Law of the Republic of Indonesia about Occupational Health and Safety

There is a committee of Occupational Health and Safety .Development, such as:

Occupational Health and Safety Guiding Committee of Pantai Timur Estate were approved on December03rd, 2012 by Labor Agency through the Decree of Labor Agency KEP-143/P2K3/XII/Disosnakertrans, the Head is Mr. Totok Ariono and secretary is Mr. Nazwir.

Occupational Health and Safety Guiding Committee of Gunung Kemasan Estate were approved on March23rd, 2013 by Labor Agency through the Decree of the Head of Labor Agency. KEP-421/P2K3/III/Disosnakertrans, the Head is Mr. Andreas Bubun and secretary is Mr. Suwaryo.

Occupational Health and Safety Guiding Committee of POM was approved on March15th, 2013 by Labor Agency through the Decree of the Head of Labor Agency number KEP-355/P2K3/III/Disosnakertrans the Head is Mr. Febrizal and secretary is Mr. Dian Fitrianto Nugroho

The company has expert of Occupational Health and Safety such as Mr. Dian Fitrianto Nugroho (Licensed Expert of Occupational Health and Safety Number of Registration is 2585/PK3/AJ/62/2012/PO valid to October 25th, 2015).

There is also Training Program for Occupational Health and Safety expert for PTE in May 2013

Occupational Health and Safety Guiding Committee Reports which routinely submitted to the Labor Agency are:

Occupational Health and Safety Guiding Committee Report for the First Quarter of 2013(January– March 2013) at PTE. It was submitted on April 15th, 2013 with cover letter number 01/P2K3/IV/2013.

Occupational Health and Safety Guiding Committee Report for the First Quarter of 2013 (January – March 2013) at GKE. It was submitted on April 24th, 2013 with cover letter number No. 01/P2K3/IV/2013. First Quarter Report is not available yet.

Occupational Health and Safety Guiding Committee Report for the First Quarter of 2013 (January – March 2013) at POM.It was submitted on April 15th, 2013 with cover letter number 382/GAF-Disosnakertrans/IV/2013.

There is minutes of meeting of Occupational Health and Safety Guiding Committee, such as:

Minutes of meeting of Occupational Health and Safety Guiding Committee on April 12th, 2013 discussed about the discipline on the use of Personal Protective Equipment, appointment of personal safety officer, checking of P3K/First Aid Emergency box and the need of APAR (Fire Extinguisher) training.

Minutes of meeting of Occupational Health and Safety Guiding Committee on April 18th, 2013 discuss about restructuring, Sime Card and transportation of harvesting machines.

Minutes of meeting of Occupational Health and Safety Guiding Committee on March 30th, 2013 discuss about safety briefing, mandatory use of PPE (Personal Protective Equipment), cover for Electromotor, mandatory to turn the light on and to use National Standard Helmet for motorcycle driver.

There is Social Assurance of Labor for all workers of PT.BSS such as at PTE. There were 480 workers completed with Social Assurance of Labor program on April 4th, 2013. Assurance was paid for March 2013 worth Rp. 46,707,339 through BNI Kotabaru, The example of accident claim on behalf of Zainal Abidin who got accident at POM (he was hit by loader so his leg gets injured) in January 2012. Claim was then given inJanuary2013 as much as Rp. 25,360,686. There is also a document which clarifies about Medical Check Up activity of staffs and the result of Medical Checkup every year. A routine checkup in 2011 – 2012 was conducted by company doctor named dr. David Terny Tumbel. Since 2013, dr. David Terny Tumbel was replaced by dr. Abdulatif Kurniawan (Certificate of Company Hygiene &


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Occupational Health Training and Occupational Safety for Company Doctor on December 18th-29th, 2011 from the Labor Ministryof the Republic of Indonesia, number of certificate is 27.118/DH-IV/11). Based on the Letter number 04/PS-GAE/III/2013 from the company doctor, medical checkup will be conducted every 6 months. Medical checkup will be conducted according to the type of job risk (Non Conformance CAR 2012.01 was closed). BSS has risk identification document (HIRARC) at estate made by staff of PT.BSS on December 1st, 2011which explain about the risky activities, potential hazards, risk, monitoring, level of risk, and recommendation of monitoring. There is also a record of risk analysis for Occupational Health and Safety program in the form of HIRARC (Hazard Identification Risk Analysis And Risk Control) document at Gunung Aru POM. For example: Processing Department, Loading Ramp Section: trolley pulling activity; potential hazards or hit by trolley or pulling sling; serious injury on the ody; stand controlling in a safe place and using Personal Protective Equipment), and work in accordance with the procedures. There is Occupational Health and Safety training program for expert by HRM division. They plan to send expert of Occupational Health and Safety for training program as the representative of GKE and PTE in May 2014. The record of Occupational Health and Safety Training program:

1. Socialization of HIRAC, participants (Supervision, staff, process, lab, and workshop). It was held on April 6th, 2012 and attended by 28 participants (list of attendance).

2. Simulation of fire emergency response. It was planned in March 2013 and it was finally held on March 30th, 2013. It was attended by 22 POM staffs (list of attendance and picture of activity are available).

3. Simulation of oil spill emergency response. It was planned on January9th, 2013. It was attended by11 POM staffs (list of attendance and picture of activity are available).

4. Briefing Department Maintenance was planned in February 2013 and it was finally held in January11th, 2013.It was attended by 32 staffs (maintenance staffs) discussed about preventive maintenance activity, 3 month work program and mandatory to use PPE(Personal Protective Equipment).

5. Lift aircraft operator’s license such as the operator of crane on behalf of Syahrudin, number of license is.1427/OTC/KK/VII/2010 valid to August 2015.

6. There is a certificate of Boiler operator training such as operator on behalf of Nanang Iswan, No. 528/BNK3-PUBT/OB-I/IV/08 dated April 29th, 2008.

7. Certificate for welder on behalf of Abdul Rohim who attended training on January11-12, 2013, the number of certificate is 566/052/Disosnakertrans.

BSS has procedure of Occupational Health and Safety for Fire Emergency Response SS-02, dated May 20th, 2010 made by Manager, Sr.Assistant, and Assistant. Fire Fighting Unit Formation, duties and responsibilities (firemen, fire prevention team, coordinator, Occupational Health and Safety specialist, evacuation team, first aid emergency team), the potential location of fire, facilities for fire protection, location for emergency situation assembly point (form up point) and emergency signs (for example bells). BSS has completed Occupational Health and Safety equipments and first aid emergency box such as at Laut Timur Estate own 39 units of APAR (Fire Extinguisher) placed in residential area of staff, office area, employee housing, 24 units of first aid emergency/P3K boxes at traction office, elementary schools, day care, office, and brought by all foremen. At GKE, there are 46 Fire Extinguishers spread in the main office (plantation office, workshop, warehouse, residential area of staff, Pondok I and Pondok II. There are 10 first aid emergency/P3K boxes which scattered at 8 locations (office, workshop, office of division, day care, and school). At POM, there are 15 Fire Extinguishers/APAR spread in 12 locations and 7 Hydrant spread in 7 different locations (in the front of office, storage tank, fuel tank, loading ramp, sterilizer, ding, and press). There is a document of spraying worker hand over of Division I GKE on April 18th, 2013. Based on the field survey at GKE, spraying workers use Personal Protective Equipment (mask, gloves, glasses, apron/safety clothes, and shoes); supervisors (foremen) bring first aid emergency boxes during spraying activity. The company needs to ensure that all workers have first aid emergency service in accordance with the level of their job risk without regardless their employment status.


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BSS has placed trained workers for first aid emergency in working area of Gunung Kemasan Estate namely foreman 1, harvesting foreman, maintenance foreman, transport porters. The workers have been trained about first aid emergency/P3K by company doctor on November 14th, 2011. Gunung Aru POM held a training of first aid emergency/P3K on July 9th, 2011 and lead by doctor and clinic nurse. It was attended by 14 workers from the mill operational activity. Based on the interview with the Head of Warehouse at Gunung Aru POM, he has been trained in first aid emergency/P3K held by the company on November14th, 2011. There is work accident monitoring in the form of monthly report which inform the identity of workers, the cause of accident, and time of accident). For example, in March 2013, there was no accident at GKE – and three accidents at PTE. There is document of work accident evaluation at each management unit. For example, there was an accident on March 27th, 2013 at D032, eyes irritation, loss of two working days (@ HOK), the cause of accident (right eye was exposed by palm leaves), recommendation for accident prevention is socialization/training how to conduct safe and right harvesting technique.


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

Palm Oil Mill Training Program 2012/2013, explain the type of training. The participant was in accordance with the training need, plan, and realization. For example:

1. Simulation of fire emergency response. It was planned in March 2013 and it was finally held on March 30th, 2013. It was attended by 22 POM staffs (list of attendance and picture of activity are available).

2. Simulation of oil spill emergency response. It was planned on January 9th, 2013. It was attended by 11 POM staffs (list of attendance and picture of activity are available).

3. Briefing Department Maintenance was planned in February 2013 and it was finally held in January 11th, 2013. It was attended by 32 staffs (maintenance staffs) discussed about preventive maintenance activity, 3 month work program and mandatory to use Personal Protective Equipment

Human Resources Training Program in 2012/2013 at Pantai Timur Estate (PTE) explains the type of training. The participant was in accordance with the training need, plan, and realization. For example

1. Occupational Health and Safety Training for harvesting and proper harvesting technique in accordance with the SOP. It was planned to be conducted in April 2013 and it was then conducted on March14th, 2013. It was attended by 62 harvesting workers and harvesting foremen (recording and picture of activity are available).

2. Occupational Health and Safety Training for proper spraying technique in accordance with the SOP. It was planned to be conducted in April 2013 and it was then conducted on March 22nd, 2013. It was attended by 10 spraying workers and foremen (recording and picture of activity are available).

3. Integrated Pest Management training would be conducted in May 2013 and it was implemented on February 6th, 2013. The participants were 8 census officers and supervisor (recording and photos of this activity are available).

There is an evidence of skilled contractor selection to the several samples of contracts with contractor. For example: in Letter of Agreement with CV Setya Putra (contractor for fruit transportation) No. PTE/SPK-LKL/III/13/041-SWTR in section 9 subsection 5 which state that the operation/driver should be completed with skill/driving license in accordance with the operated unit


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.

BSS has a number of environmental management documents which itemize the identification result of positive and negative impact prediction caused by the operation of plantation and palm oil processing mill. These documents consist of:


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(1) EIS Document that has been approved by the Ministry of Agriculture number No. 036/ANDAL/BA/II/1996 Cq. Head of Agribusiness Agency –itemize the impact prediction of erosion, flora and fauna disturbance, air and water source pollution, community restlessness.;

(2) RKL/RPL Document has been approved by the Ministry of Agriculture number 010/RKL-RPL/BA/IV/1997 Cq. Head of Agribusiness Agency – itemize the management and monitoring method of each impact;

(3) Document of HCV/High Conservation Value identification result in 2009 – itemize the presence of species and habitat that must be protected;

(4) Document of Social Impact Study in 2009 – itemize the social impact and its management; Document of RKL/RPL revision in 2011 – including impact prediction and conservation effort that must be conducted at replanting activity.

At the location, there is an evidence of report submission of routine RKL/RPL implementation per semester - to the Head of District Environment Body of Kota Baru Regency of South Kalimantan Province. Report of First Semester was accepted by BLHD/District Environment Body on 9/20/2012 and Report of Second semester was accepted on 4/17/2013.


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.

HCV/High Conservation Value identification result in 2009 showed the presence of protected species in BSS area, as follow:

13 species of birds are in the Red list Data Book IUCN;

2 (two) species of protected bird as regulated in UURI Number 7 year 1999 and Appendix II CITES, such as: alap-alap nipon (Accipiter guleris) and meninting king of shrimp (Alcedo meninting).

3 (three) speciesof mammals are in the Red list Data Book IUCN, such as coconut squirrel (Callosciurus notatus), chipmunk(Tupaia tana), lemur(Cynophalus variegatai);

1 (one) species of mammal protected by Law number No. 7/1999, lemur (Cynophalus variegatai).

The record of routine monitoring result (monthly) to flora and fauna at each estate can be shown at the location. However, the format of report in presenting the information was not similar so the dynamic of flora and fauna presence at all BSS working area were difficult to be evaluated. Last monitoring was conducted in February 2013 at PTE and March 2013 at GKE. There was a species of protected bird successfully recorded. It was meninting shrimp (Alcedo meninting).During field survey, there were several other protected species such as Accipiter guleris, Callosciurus notatus, and Tupaia tana. They were directly encountered by the MUTU auditor at the entire block as the object of observation. Field survey was also conducted at Block II 39 Pantai Timur Estate (conservation area) and V 02 Gunung Kemasan Estate (HCV 1 and 4). It can be seen that BSS proved several efforts to protect several protected species and habitat such as HCV/High Conservation Value boundaries marking and rehabilitation of HCV area through the planting of forest tree species. However, there were no posters, warning signs or other publications that can be accessed by workers and community. It informs the presence of protected species in BSS workarounds and its management – CAR 2013.01 The supervisors of HCV have been available at each estate, namely: Edi Purnomo – Gunung Kemasan Estate (GKE); Hendri Siburian – Pantai Timur Estate (PTE); Topan Sinaga – Laut Timur Estate (LTE); and Faizin – Gunung Aru Estate (GAE).

Minor Status: see CAR 2013.01 OPEN

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

There are two types of produced waste by BSS namely Hazardous Material Waste (clinical waste, used oil, used cans, pesticide residue, used batteries, used light bulb, used gloves, and used filter); and non Hazardous Material


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Waste(domestic waste). BSS has SOP Number 709/TQEM-ESH/10 which explains the mechanism of B3/Hazardous Material Waste storage and its disposal by referring to the Decree number Kep-01/Bapedal/09/1995;B3/Hazardous Material Waste should be delivered to the licensed collector. There is Waste Balance to keep all produced wastes and delivered to the licensed collector. Up to April 22nd, 2013, there were 25 drates of waste in the form of pesticide residue (such as klerat and azodrin that have been prohibited) and 40 liter of used oil. Meanwhile, there was no other type of waste (NIL). BSS showed the proof of B3/Hazardous Material Wastedelivery to CV Barokah (license number is 660.4/410/APDL/Bapedalda/2011) on May 31st, 2011. It consist of used oil, used cans, used batteries, used light bulbs, used gloves, and used oil filter. Clinical waste destruction was conducted by Public Hospital of Kota Baru Regency which completed by incinerator. Meanwhile, domestic wastes were disposed by buried them in palm oil plantation area by separating its organic waste and inorganic waste. One of the waste disposal areas is Block EE 40 Pantai Utara Estate. Most of the used of pesticide containers was 20 L - jerry can. Once it washed, it will be reused as trash bin and plant containers. Meanwhile, most of the used fertilizer container can be reused to retain soil erosion. Liquid waste and empty fruit bunch from Palm Oil Mill can be used as organic waste at 58 Blocks and land application. Meanwhile, its fibers and shells can be used as boiler fuel. Based on the recording of solid waste in July 2012-March 2012, there were processed FFB as many as206.000.249 kg; empty fruit bunch as many as – 46,836,642 kg; Fiber as many as – 12,914,267 kg; shell as many as – 9,454,717 kg.


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

BSS shows the Renewable Fuel Monitoring document in July 2012-March 2013, as follow :

Shell: actual was 9,123,531.00 kg – produced energy was 0.19 kwh/ton. Budget of June 2012-March 2013 was 9,541,050 kg – produced energy was 1.56 kwh/ton.

Fiber: actual was 35,089,862 kg – produced energy was 1.03 kwh/ton; Budget was 36,043,967 kg – produced energy was 1.51kwh/ton.

BSS also has recording of fossil fuel use. Based on this recording, actual use of fuel in July 2012-March 2013 was 138,430 or only 15% of the budget at the same period (932,360 lt). The difference of budget and actual rate is the efficiency of the company due to shell and fiber usage.


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.

The company has established zero burning policy in the Agricultural Reference Manual of Palm Oil section 4 (Land Preparation). The Decree of Directorate General of Estate Crop No. KB 110/SK/DJ BUN/05.95, on May 30th 1995 explains the technical guidance for land clearing without burning for plantation development as the guidance for land preparation with no burning. The result of field survey at Block Q3 and Q4 - Gunung Kemasan Estate, replanting activity in April 2013, showed that there was no land clearing signs by burning. At the location, chopped palm oil log and leftover tree stumps were stacked to form a path between two rows of staple plants. Replanting daily report is also available at the location. It explains all replanting activity in detail from land clearing to planting activity with clear schedule. At this phase, there was no burning activity. There was a Structure of Organization of Land Fire Emergency Response, fire extinguisher, and the implementation of land fire emergency response simulation, in the form of list of attendance and pictures of activity on 02/15/2013. Even


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though it had been attended by 16 personnel’s (assistant level)and staffs, most of the determined personnel name were not included as the person in charge in the Structure of Organization of Land Fire Emergency Response Fire extinguisher is available at each estate, the composition is: 1 unit of water pump, 250 meter of suction hose and sprayer, and 7 pieces of burlap sacks.


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

Hazard Identification Assessment Control (HIRAC) document is available. It explains the potential dangers in detail including the danger of pollution and emission at each palm oil mill station, and action plan to eliminate pollution and its emission. Based on this document, there are several stations potentially become the source of pollution and emission, such as: Press Station – oil spill/droplet during worm screw replacement, hydraulic power repair, and sludge separator

operation – by using containers; Clarification Station – oil spill at the operation of vacuum dryer, coupling sludge separator repair; noise from the

operation of machine – by using containers; Kernel Station – dust and noise caused by the operation of machine – by using earplug. Boiler Station – dust, black smoke, noise from the operation of machine – routine maintenance of dust filter, by

using earplug; Machine chamber – lubricant leaks, diesel fuel spill, black exhaust fumes and noise from the operation of machine

– by using container, masks, and earplug Warehouse – fuel spill, radiation of electric welding, Scrapgram from the operational of drilling machine – by

eyeshade; WWTP Pool – smell from the processed waste – masks, pool maintenance for aerobe and anaerobe process.

. The results of routine monitoring to air emission and ambient air (first semester and second semester of 2012) were available. It was conducted by Occupational Health Agency and Work Safety in Banjarmasin. However, several testing implementations were late, such as :

The quality standard of boiler (boiler chimney) which use fiber and/or shell biomass as its fuel – Report of First Semester on May 23rd, 2012 and Second Semester on April 18th, 2013;

Emission Air Quality of other type of activity (generator chimney) - Report of First Semester on May 23rd, 2012 and Second Semester on April 18th, 2013;

Ambient Air - Mess management, in front of the Gunung Aru Elementary School, Residential area at POM – Report of First Semester on May 23rd, 2012 and Second Semester on April 18th, 2013;

The report of other monitoring result is also available, as follow: Intensity of noise at each palm oil mill station – date of report is May 23rd, 2012; intensity if noise at engine

room (95.3 dBA) and boiler (88.3 dBA). It exceeded its quality standard (85 dBA). Waste water parameter– January-December 2012; River water quality – Report on April 04th, 2012; Drinking water quality – Report on May 29th, 2012; August 2012; Monitoring well water quality – Report on February 5th, 2013.]

All sampling results showed that they were below their quality standards. BSS has a record of repair and maintenance for several stations, such as cleaning of main hole dust collector every two weeks, cleaning of feed water pump every month, and cleaning of main hole dust collector.


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


ASSESSMENT REPORT


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.

Social impact management and monitoring plan through the participation of community is described in the Matrix of Management and Monitoring of PT BSS at each RKL/RPL document for the type of Community Restlessness impact. The source of impact is plantation area and mill. Period and frequency of monitoring is every 6 months. A routine meeting with community was also conducted.

One of the realizations of social impact monitoring by PT BSS is direct social donation (fund, direct main needs, and education). It was recorded as the CSR program realization in 2011/2012 and 2012/2013. In addition, there are several meetings with local people, instead of direct donation of CSR program realization.

Gunung Kemasan Estate (GKE):

Minutes of meeting about the Discussion of Palm Oil Plantation Development Project between PT BSS with KUD Bersama Sejakah Makmur. The meeting was held on January 31st, 2013 attended by 9 people such as: Estate Manager GKE, Head of Sejakah Village, Head of KUD-BSM, Head of BPD Sejakah Village, Community Figure/youth, Head ofBekambit Village, Head of Bekambit Sub Village, and Head of BPD of Bekambit Villageand administrator of smallholders.


A routine meeting at PTE was conducted during the socialization ofHigh Conservation Value /HCV on March18th, 2012 inTanjung Pengharapan Village. It was attended by 30 people. Based on the Final Report of Social Impact Study composed by CV POLLITO in January 2010, the scope of study was 8 villages around the company such as Langkang Baru Village, Langkang Lama Village, Bekambit Asri Village, Bekambit Village, Betung Village, Sajakah Village, Tanjung Pengharapan Village and Batu Tunau Village. Meanwhile, according to the Main Report of EIS in 1995, Meanwhile, according to the Main Report of EIS in 1995, social restlessness possibly happen were social jealousy related with employment, overlapping of land ownership, Mill waste was potentially pollute Bekambit River and potency of culture acculturation between local people and immigrant. According to the information from the document and explanation by the person in charge of PT BSS, there was no revision or change in company operational scope of study to social aspect. .

First Period of RKL/RPL Report in 2012 (January – June 2012) has been submitted to the District Environment Body/BLHD of Kotabaru Regency. The number of receipt was 082/GAF-BLHD/IX/2012 on September 20th, 2009. Meanwhile, the Second Period of RKL/RPL Report in 2012 (July – December 2012) has been submitted and the number of receipt was No: 383/GAF-BLHD/IV/2013 on April 17th, 2013.

The results of activity realization in order to minimize social impact at the company have been presented/integrated in RKL/RPL report in the form of realization of CSR program for each unit such as 1 mill and 4 estates. The donation was in the form of fund, heavy equipment allocation, and road management and education program.

PT BSS plan to develop smallholders plantation with KUD Bersama Sejakah Makmur (KUD-BSM) for three villages namely Bekambit Village, Sejakah Village andBatu Tunau Village. The minutes of meeting on January31st, 2013 was attended by 9 people such as Estate Manager GKE, Head of Sejakah Village, Head of KUD-BSM, Head of BPD Sejakah Village, Community Figure/youth, Head of Bekambit Village, Head of Bekambit Sub Village, and Head of BPD of Bekambit Village and administrator of smallholders.

There was an agenda of meeting to discuss about the supporting and commitment of village head and community figure from three villages, the member or Maju Bersama smallholders (MBP). It discussed about the permit of MBP (3.643 Ha)

Based on the progress of MBP assessment report in 2012, PT BSS has provided 60,000 seedlings and nursery area to support the development of smallholders. Up to the implementation of surveillance-2, audit of MPB, it has not been implemented yet because permit from Kotabaru Regent has not been received yet.



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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.

PT BSS has a mechanism to accept and respond information order from stakeholders in the form of SOP No. 034/BSS-SOP/10 on April 1st, 2010. The list of stakeholders name are listed below:

Gunung Kemasan Estate

There was minutes of meeting related with the Discussion of Palm Oil Plantation Development Project between PT BSS with KUD Bersama Sejakah Makmur. The meeting was held on January 31st, 2013 attended by 9 people such as: Estate Manager GKE, Head of Sejakah Village, Head of KUD-BSM, Head of BPD Sejakah Village, Community Figure/youth, Head of Bekambit Village, Head of Bekambit Sub Village, and Head of BPD of Bekambit Village and administrator of smallholders.

Aspirations from outsiders were written in Incoming Mail and Outgoing Mail Books. These books contains: date, number of incoming mail, subject, from, sample of community aspiration order., for example

Aspiration: January12th, 2013 No: 03/IX/KDB/PLT/2013. Letter from the community in Bekambit Village related with heavy equipments allocation order (compactor) to compress the road as long as 1,200 meter.

Response: January 16th, 2013 No: 03/1/GKE/2013. The letter of response from GKE management related with heavy equipment order. The company stated that they cannot meet this order (in due date) because this heavy equipment was not available. It still in bidding process.

Head of Public Administration, Mr Supardi is responsible to perform a consultation and communication with the community.

List of stakeholders:

1. Non Government Organization/NGO (3 NGOs): Lamas NGO, Gasak NGO, and Anak Kaki Gn. Sebatung. NGO. 2. Government (14 institutions): Department of Agriculture, Department of Transportation, Department of Health and

Social Welfare, National Land Agency, Department of Labor and Transmigration, Kotabaru Hospital, Kotabaru Jamsostek/Social Assurance of Labor, BNI 46 of Kotabaru, Perlindo II of Kotabaru, Environmental and Investment Agency, Harbor Administration, Directorate General of Taxation, POLRES of Kotabaru, Central Statistical Agency of Kotabaru.

3. Community figures (12 people): Head of Pulau Laut Timur Sub District, Head of Sejakah Village, Head of Bekambit Kampung Village, Head of Batu Tunau Village, Head of Tanjung Pengharapan Village, Head of Betung Village, Head of Bekambit Asri Village, Head of Langkang Baru Village, Head of Langkang Lama Village, Head of Karang Sari Indah Village, Head of Kulipak, Village, Head of Selaru Village.

4. Contractors (7 contractors): Fresh Fruit Bunches Transportation Contractor, Hardening, Box Culvert and Ditch Cleaning.

5. CPO Buyers, Kernel and Transporter (3 companies).


At PTE, routine meeting was conducted during the socialization of HCV on March 16th, 2012 in Tanjung Pengharapan Village. It was attended by 30 people. All community aspirations were recorded in Book of External Incoming Mail Register of PTE. This register book contains: date of achievement, number, date of letter, from, subject, file, and follow up note. The sample of community aspiration at PTE is described below:

Aspiration: On February 20th, 2013, Letter from resident of Batu Tunau Villagerelated with road cleaning and paving as long as 2 km.

Response: On February 22nd, 2013, No. 024/PTE-Ds Batu Tunau/II/2013. This letter responded that the company could not meet the community aspiration because of bad weather (rain) so heavy equipment would not work for maximal in its operation.

Head of Public Administration, Mr Asdian Lapata is responsible to perform a consultation and communication with the community .


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List of stakeholders:

1. Muspida/Local Leader Deliberation: consist of 12 related institutions 2. Muspika/Sub District Head Deliberation: consist of 7 institutions 3. Supplier: consist of 11 suppliers 4. Contractor: consist of 19 contractors for fresh fruit bunches transportation, JJK, heavy equipment, bridge, and

rocks transportation.


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

PT BSS has Information Order Procedure (034/BSS-SOP/10). Information order should be responded in 15 days, for at least, since the acceptance of information order or complaint by the company Based on the information from field survey in Sejakah Village, Bekambit Village and Batu Tunau Village, so far PT BSS is quite open in communication.

a) Gunung Kemasan Estate (GKE): Aspirations from outsiders were written in Incoming Mail and Outgoing Mail Books for GKE. These books contains: date, number of incoming mail, subject, from, note. In.2012 and up to the implementation of Surveillance-2 audit, there was no complaint from the community.

b) Pantai Timur Estate (PTE): All community aspirations and complaints were recorded in Book of External Incoming Mail Register of PTE. This register book contains: date of achievement, number, date of letter, from, subject, file, and follow up note. In.2012 and up to the implementation of Surveillance-2 audit, there was no complaint from the community.

Procedure No. 035/BSS-SOP/10 about SOP of Land Claim onOctober5th, 2010. This document explain the mechanism of: a. Land Clearing Implementation b. Land Clearing Principle c. Research Phase, Verification, and Land Inventory d. Submission Phase and Compensation Payment e. Verification Phase of Payment Document f. Compensation Payment Phase g. Service Storage Phase


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.

Procedure No. 035/BSS-SOP/10 about SOP of Land Claim on October 5th, October 2010. This document explain the mechanism of: a. Land Clearing Implementation b. Land Clearing Principle c. Research Phase, Verification, and Land Inventory: point 7. Measurement of land and the result was written in the

Document of Blend Map known by Surveyor/BM and POU, Head of Sub Village, Head of Village, old people, Head of Sub District. Point 8. Legal aspect research on the land ownership, land owner should have Statement of Waiver of Land known by the Head of Sub Village, Head of Village, Traditional Leader, and Head of Sub District.

d. Submission Phase and Compensation Payment e. Verification Phase of Payment Document f. Compensation Payment Phase: point 3.b) Payment is conducted after the submission to the company in the form of

original letter of land ownership/a document certifying land right releasing. Please note that land owner should have


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a document certifying land right releasing known by the Head of Sub Village, Head of Village, Traditional Leader, and Head of Sub District.

g. Service Storage Phase: point 4. Payment of Compensation to the Removed Land/Crops should be registered to Land Agency of Regency.

Standard Operating Procedure (SOP) of Occupational Land Acquisition (No. Policy: 343/PSD-OKUP/11) on February 23rd, 2012. At the Chapter IV General Information point 4) negotiation occupational land acquisition with land owner (based on the legal document) was conducted by Plantation Services-Region Manager and Estate Manager. It was witnessed by village officers and stakeholders/related parties. There are several documents of identification process who received land compensation in the form of document of Land Claim Case Phase, PT BSS - Minamas Plantation. This document cover the names of people/group, phase of land claim case, the location of land claim case, and its solving or compensation payment. Since 2004, all process of compensation had been finished


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.

List of staffs’ income is available at each estate both Gunung Kemasan Estate (GKE) and Pantai Timur Estate (PTE). The change of sectoral minimum wage of South Kalimantan Province in 2013 was based on the Decree of Dissosnakertrans (Social, Labor, and Transmigration Agency) Number 560/092/Dissosnakertrans onJanuary16th, 2013. Wage was Rp. 1,250,000.00 and change toRp. 1,365,000.00 – actual wage in 2013 is based on the Payroll March 2013, earned full wage without any an absent is Rp. 1,365,000.00 (GKE on behalf of Endangsari – Maintenance; Idris Fadila – General; Martina – Fertilizing); Yulianus – Supervisor at PTE Div 2; Paiman – harvesting porter PTE Div 2; Wakiman –transporting porter PTE Div 2. PT BSS has company regulation for the period of 2010-2012 approved by the Labor and Transmigration Agency of Kotabaru in March 2010. According to the section XXII in this Government Regulation, this regulation is valid for two years since its establishment. No later than 3 months before its end of date, this regulation should be reviewed and approved by the Labor and Transmigration Agency Decree of Labor and Transmigration Agency Number 560.568/KEP-907/PP/HI/X/DISOSNAKERTRANS/2010 concerning the Ratification of Government Regulation on October 12th, 2012. The second decision of high authority: the Government Regulation (PP) will valid from October12th, 2010 to October 11th, 2012

During the implementation of Surveillance-2 activity (April 2013), PT BSS did not have renewable Government Regulation and there was no statement that this Government Regulation was still valid. However, the company has draft of Joint Working Agreement as legal certainty bond between the company and staffs.

There is a Consideration and Advice Letter number: 29/HRM-KPW/X/2012 dated October 1st, 2012 concerning the application and consideration of suggestion from the representative of staffs related with the text of Government Regulation that will be extended in accordance with the Section 6 of the Decree of Labor and Transmigration Agency of the Republic of Indonesia number 48/MEN/IV/2004.

The representative of staffs responded through letter on October 12th, 2012. This letter stated that the staffs agreed to the text of proposed Government Regulation because it contains material that meet the valid manpower regulation. However, there was no statement indicating that old government regulation is still valid. PT BSS does not have certainty in relationship with staffs/workers since November 2012 to March 2013, because Government Regulation has expired (October 2012). CAR 2013.02:

April 29th, 2013

The evidence of Agreement between Independent Workers Union (SPM) that all estates are under the management of PT BSS related with the regulation of company. It has been submitted on April 25th, 2013. There are 4 Independent Workers Unions (SPM), such as:


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- SPM Gunung Aru Estate: Head (Mr. Alfianur) and Secretary (Mr. Karsono) - SPM Gunung Kemasan Estate: Head (Mr. L. Mahyudin) and Secretary (Mr. Akhmad Maulana) - SPM Laut Timur Estate: Head (Mr. Nursiyo) and Secretary (Mr. Tiopan Sinaga) - SPM Pantai Timur Estate: Head (Mr. Victor Marpaung) and Secretary (Mr. Juni Winarto)

In this agreement letter, all SPM board also agrees to use Company Regulation period of 2010-2012 as the base in the implementation of manpower relationship between the company and staffs. It is conducted because new PP/PKB is still in the ratification process at the Labor and Transmigration Agency of Kotabaru. Therefore, Non Compliance CAR 2013.02 was CLOSED

The company provides housing, education, clean water, health, and adequate public facilities. a) Gunung Kemasan Estate (GKE):

Mosque (2 units); Housing at G1 (30 units); Housing of employee at G2 (150 units); Housing of staffs (6 units); Guest House (1 unit); kindergarten (1 unit); elementary school (1 unit); Day care (3 unit); church (1 unit); Employees Hall (1 unit); Football Field (1 unit); Volleyball Field (2 units); Badminton Field (2 units); Table tennis (2 unit); Central Policlinic (1 unit); Drilling Well for Clean Water (3 units).

b) Pantai Timur Estate (PTE): Mosque (3 units); Housing at G1 (9 units); Housing of employee at G2 (150 units); Housing of staffs (5 units); Guest House (1 unit); kindergarten (1 unit); elementary school (1 unit); Day care (3 unit);s church (1 unit); Employees Hall (1 unit); Football Field (3 units); Volleyball Field (3 units); Badminton Field (2 units); Branch Policlinic (3 units); Drilling Well for Clean Water (3 units).

PT BSS has agreement/contract with contractor. The contractor should compliance the valid regulation in employment. In section 9 – Discipline and Responsibility, the second party (contractor) must use PPE (Personal Protective Equipment) during work.


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

The company is committed to be a responsible company in giving employees freedom to organize in plantation area of mill. This commitment is implemented in the form of:

Policy of freedom in union state that each staff is free to join in association, gathering, or sharing opinion as long as it is not against company regulation. Each staff has a right to establish workers union. .

Code of conduct No 440/HRM-COC/07 in business ethics and commitment of company to staffs by allowing staffs to share their opinions and aspirations to the company.

The establishment of Independent Workers Union of PT Bersama Sejahtera Sakti Pantai Timur Estate has been recorded and registered to the Labor Agency. Its number is 568/101/SP/Dissosnakertrans dated April 15th, 2013. The board of workers union is available and it is led by Victor Marpaung.

The establishment of Independent Workers Union of PT Bersama Sejahtera Sakti, Gunung Kemasan Estate has been recorded and registered to the Labor Agency. Its number 568/096/SP/Dissosnakertrans dated August 13th, 2012. The board of workers union is available and it is led by L Mahyudin. Minutes of meeting is available, as follow:

a. Meeting of workers union establishment on July11th, 2012. It was attended by 18 people (list of attendance is attached).

b. Internal meeting of Independent Workers Union of Gunung Kemasan Estate’s Workers onDecember22nd, 2012.It was attended by 24 people (list of attendance is attached).

Internal meeting of Independent Workers Union of Pantai Timur Estate’s Workers on April 12th, 2013.It was attended by 24 people (list of attendance is attached).



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

The policy of company :

Social policy that Plantation Upstream Indonesia does not allow to take advantage of labor in a forcible manner or to employ under age labor (children). This activity was approved by the Head of Plantation Upstream Indonesia in December 2011

SOP of New Staffs Recruitment (SKU) onJuly10th, 2009 general policy clausal states that the minimum age of staffs is 18 years old and not more than 40 years old.

Based on the master list of employee of PT BSS, there is no underage staffs (less than 18 years old) when staffs start to work at PT BSS.

Status: Full compliance

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

The company has a social policy that each staff/worker should be treated fairly during the recruitment process, promotion, restriction, and job conditions without regard to personal issues such as race, degree, sex, ethnic, color of skin, physical condition (defective/imperfect), membership of organization, political views, religion, and/or age. This policy was approved by the Head of Plantation Upstream Indonesia in December 2011. Based on the master list of staff, the distribution of staffs can be seen. Staffs are coming from Javanese, Bugis, Batak, and Tator. Their religions are Mouslim, Christian, and Hindu. Their marital status is single and married. It is showed that the company is transparent to give similar opportunity and equal treatment in employment.


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.

The company committed to be a responsible company in protecting female workers from sexual harassment. This policy was signed by manager of each estate and mill. The contents of this policy are described below:

A pregnant woman will be placed in proper area of job and still can be done by pregnant woman to 8 months of pregnancy. H2 (maternity leave) will be then given for 45 days before giving birth and 45 days after giving birth.

Each female staffs who work at field will have a rest period (H1) for a maximum two consecutive days in each month.

After birth, female employee who have come to work can breastfeed her baby at working hours up to 3 month old baby.

In the implementation of gender policies, PT BSS has conducted these following efforts: a. The establishment of gender committee. b. To establish structure of gender committee for the period of January19th, 2012 -January19th, accompanied by

a letter of appointment and lead by Ernawati (appointment letter number 01/SP-PTBSS/2012). In addition, each estate has gender coordinator.

c. To create activity and program include the objective, policy directions, program, events, and indicator. d. The committee of gender conducts monthly meeting to discuss about the working program. The minutes of

meeting, pictures of activity, and achievement of activity are available.

In the timesheet list of employee in March 2013, each female worker had H1 period leave for 2 days and H2 leave. Based on the field observation result, female worker know the procedure of H1 and H2 leaves to get permit from the company. Based on the payroll data, their income is fully paid.


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Social policy number 701/TQEM-ESH/10 explains the mechanism of complaint submission and its form. 1. Informant or victim fills complaint form. 2. To deliver this complaint form to the local member of Gender Committee. 3. Head of gender committee set investigation team. 4. Report of investigation team is delivered to victim, informant, and related parties. 5. If objective evidence of sexual harassment is adequate, manager unit will give disciplinary action to perpetrator.


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

Until the implementation of Surveillance 2, PT. BSS did not receive fresh fruit bunches from other smallholders plantation. However, PT BSS coordinate with local contractor for several projects, such as: Gunung Kemasan Estate (GKE):

Letter of agreement for Replanting Activities of Plant Stake (No: GKE/SPK-Intern/Divisi I/IV/2013/061 on April 11th, 2013. The name of contractor is AMAT. The period of activity implementation is 15-25 April 2013

Minutes of Meeting of Payment Checking on behalf of contractor/AMAT (No: GKE/SPK-Intern/Divisi I/IV/2013/061) for stake activity on April 15th, 2013 is available


Letter of Agreement for Fresh Fruit Bunches transportation (No: PTE/SPK-LKL/III/13/042-SWTR) on December28th, 2012. The name of contractor is: MUSRIFIN. The period of activity implementation isJanuary1st –March31st, 2013.

Minutes of Meeting of Payment Checking on behalf of contractor/MUSRIFIN (No: PTE/SPK-LKL/III/13/042-SWTR) for Fresh Fruit Bunches transportation on April 15th, 2013


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

PT BSS contributed to the local development in the form of routine taxes and retribution payment paid to local government. In addition, there is CSR programs. Land and Building Taxes Payment by PT BSS for 2012 had been conducted in November 7th, 2012 as much as Rp.1,866,908,206. The receipt of payment is in the form of remittance and Voucher Bank to all BNI 46 of Kotabaru Regency Gunung Kemasan Estate (GKE):

Based on the Data in Document, CSR Program Realization worth Rp.2,348,340,897. It was used for: Community Empowerment, Social Activities, Roads Repairmen, and Village Development. Dana.

Meanwhile, CSR Program Implementation in 2013 up to March 2013 worth Rp.399,352,862. It was used for: Community Empowerment, Education, Social Activities, Village Development, and Praying House Repairmen.


Community Development/Corporate Social Responsibility in July 2011 s/d February 2013 was conducted in several activities:

- Community Empowerment in Surrounding Area worth Rp. 6,734,828,819 - Community Development in Surrounding Area worth : Rp. 114,333,936 - Social Activity around the Company: Rp. 63,347,715 - Health Activity: Rp. 7,400,000 - Education: Rp. 11,400,000

Total Community Development/Corporate Social Responsibility fund in July 2011 - September 2013 was


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Rp. 6,931,310,470. Meanwhile, the plan of Community Development/Corporate Social Responsibility Program in 2013/2014 consists of several programs such as: Developed Village (Batu Tunau Village, Tanjung Pengharapan Village); Education (The Welfare of Teachers in Batu Tunau Village); Basic Needs for Elderly (Batu Tunau Village, Tanjung Pengharapan Village). Total budget for Community Development/Corporate Social Responsibility fund in July2013 - June 2014 is Rp. 63,600,000


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.

There is a study document about the influence of replanting activity to environmental and social aspects by Aksenta consultant. This study was intended to ensure that environmental management activity has followed conservation rules. Replanting monitoring activity has also been described in RKL/RPL First Semester and Second Semester of 2011. It was approved by the Environmental Agency of Kotabaru. The impact of replanting activity has been scoped in RKL/RPL document and its implementation was reported periodically (6 months) to the Environmental Agency of Kota Baru Regency. Smallholders program has not been implemented yet because permit from the Regent of Kota Baru has not been approved.


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.

The records of land suitability analysis in replanting area in January21st-23rd, 2013 for 237.10 Ha showed the actual level of suitability (94.52% = 224.1 ha), N1 (4.60% = 11 Ha) such as at Block Q04 Field C02. N1 is physical boundary factor: deficit water potency, flooding/poor drainage system, erosion potency, chemical boundary factor: (status of nutrient availability was low specially alkali cation except K, pH, C Organic, C/N Ratio and P very low availability There is a record of plantation development according to the land suitability such as Block Q04 Field C02. N1 is physical boundary factor: deficit water potency, flooding/poor drainage system, erosion potency, chemical boundary factor: (status of nutrient availability was low specially alkali cation except K, pH, C Organic, C/N Ratio and very low availability of P). Based on the daily report related with Land Preparation and field observation at Q04, the company has managed flooding area by using water management CECT system (Closed Ended Conservation Trenches)


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.

BSS has data of Area Statement in 2012-2013. It specifies the distribution of land use which scope main tree area, HCV area, facilities/infrastructure, and settlement area. Tree area is specified according to its planting year, area of replanting implementation, and replanting tree after 2005. There is also environmental study document in 2011 for replanting activity. This study was conducted by AKSENTA Consultant. It specified about the type of impact potency (to environment of social), and provide recommendation for its management and monitoring. All environmental parameter monitoring recommendations in the form of land erosion prevention, fauna disturbance prevention, and community restlessness have been accommodated in the Report of RKL/RPL Implementation. The result of superimpose of working area map and Map of Forest and Waters Area Designation of South Kalimantan Province–Decree of Forestry Minister No. 432/Menhut-II/2009, on 07/22/2009 –all BSS area are in other usage area.


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There is Map of HCV identification result in 2010. It clearly shows the location of HCV and area that can be used as main crops area. Field observation was conducted to Block Q3 and Q4 GKE (replanting in March 2013), Block II 39 PTE and Block V 02 PTE. Based on this field survey, a clear delineation boundary between the main crops and HCV area can be identified.


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

There is a land map for each plantation unit of PT BSS, such as:

Land Map Unit of Pantai Timur Esate is completed with scale of 1: 25,000; and legend explains the level of soil fertility (S2 – N1 Class). Marginal land is stated with N1 Class suitability (boundary factor is slope/erosion), for example at Block II 39 and HH39 with slope class is 50%. It is determined as conservation area according to the letter from manager dated September 07th, 2012 on No. 034/PTE/GM.Est/IX/2012. Based on the result of measurement in Mature Plant Area wide area of HCV (High Conservation Value) is 29.86 Ha

There is a Map of Marginal Area at GKE with scale of 1: 100,000 which figure the distribution of marginal land (wide area of low lying area is 978.44 ha).

PT BSS already has management strategy or area with specific case, such as:

- To minimize erosion and surface run off by maintaining the vegetation through selective weeding, terracing, U shape frond stacking, mulch application by using empty fruit bunch and crops planting for terrace strengthen (Vetiver).


- Based on the field survey at Block Q02 and Q03 GKE, there was a proof of mining area management such as terracing, JJK application, and legume cover crops cultivation.

- Based on the field survey at Block W17 GKE, there was Siltpit.

PT BSS also has monitored erosion rate as the evidence in erosion and degradation monitoring effort. It has been effectively conducted accordance with the valid regulation (Government Regulation number 150 year 2000). This monitoring activity is conducted by measuring land erosion by using Erosion Stakes which installed at several sampling points in entire plantation area. Monitoring is conducted every month to record land subsidence by using a tool which installed at this stake. BSS measured this land erosion since August 2010 and its monitoring record has been provided. For example, at Block W.16 with topography of 15 – 30%, there was a decreasing as many as 3 mm (critical value is 9 – 12 mm/10 years).


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.

In the area of PT. BSS plantation, there was no tenure land. It is also proved by the letter from National Land Agency of Kota Baru Regency on June 23th, 2010 that land in Kota Baru Regency does not have a regulation that regulate the status of communal land right/tenure right. Related to this point, all HGU (Land Use Permits) which issued by National Land Agency and/or during the process of its right, do not have communal land right/tenure right


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.

PT BSS still keep the land clearing documents on behalf of Darkasi Latif. These documents consist of :

Minutes of meeting of deliberation on May 17th, 2004 between Darkasi Latif and PT. BSS noticed by the Head of Pulau Laut Timur Sub District and Head of Batu Tunau Village.

Statements on behalf of Darkasi Latif on May 17th, 2004 concerning the agreement of PT BSS to solve the compensation of this land case and plants on it (15 Ha) which situated at DD. 42 – 43. This statement was noticed


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and signed by the Head of Pulau Laut Timur Sub District and Head of Batu Tunau Village.

A receipt of compensation payment worth Rp. 52.000.000 for the finishing of land case and plant in 15 ha area which situated in Batu Tunau Village, Pulau Laut Timur Sub District, Kotabaru Regency.

A receipt of payment form PT. BSS to Darkasi worth Rp. 52.000.000 for the compensation of 15 Ha land, in July 2004.

ID card (KTP) on behalf of Darkasi Latif who live in Tunau Village, Pulau Laut Timur Sub District, Kotabaru Regency.


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.

The company has established zero burning policy in the Agricultural Reference Manual of Palm Oil section 4 (Land Preparation). The Decree of Directorate General of Estate Crop No. KB 110/SK/DJ BUN/05.95, on May 30th 1995 explains the technical guidance for land clearing without burning for plantation development as the guidance for land preparation with no burning. The result of field survey at Block Q3 and Q4 - Gunung Kemasan Estate, replanting activity in April 2013, showed that there was no land clearing signs by burning. At the location, chopped palm oil log and leftover tree stumps were stacked to form a path between two rows of staple plants. Replanting daily report is also available at the location. It explains all replanting activity in detail from land clearing to planting activity with clear schedule. At this phase, there was no burning activity. There was a Structure of Organization of Land Fire Emergency Response, fire extinguisher, and the implementation of land fire emergency response simulation, in the form of list of attendance and pictures of activity on 02/15/2013. Even though it had been attended by 16 personnel’s (assistant level) and staffs, most of the determined personnel name were not included as the person in charge in the Structure of Organization of Land Fire Emergency Response

Status:

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.

Monitoring plan that considers environmental and social impact analysis is written in RKL/RPL document 2011 HCV 2010 Identification Result, and Social Impact Analysis (SIA) 2010. It is in the form of recommendations that must be followed up by the company, such as:

(1) Monthly monitoring to the presence of protected flora and fauna; (2) Quarterly monitoring to the pollution and air emission; (3) Monthly monitoring to the use of chemical material; (4) Quarterly monitoring to the river water quality; (5) Monthly monitoring to the B3 waste; (6) Monthly monitoring to the use of liquid waste and solid waste from palm oil mill. (7) Monthly monitoring to the community restlessness.

All results of monitoring and evaluation are written in the Document of RKL/RPL Implementation Report which periodically submitted to the Environmental Agency of Kota Baru Regency. There are also evidences to revise the result of mismatch report from the former RSPO audit and all mismatch reports have been “closed” by auditor. These mismatch points are related with indicators:

(1) Minor 4.7.4 – Regular checking to high risk workers; (2) MB-SC 3.4 – Supply chain model in sales contract; (3) MB-SC 4.1 – Supply chain model and certified CPO in invoice; (4) MB-SC 6.1 –CPO Claim RSPO Certified


3.2. Summary of Assessment Report of Supply Chain


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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.

PT Bersama Sejahtera Sakti has the procedure for Identification and Traceability of Product at Minamas Plantation Palm Oil Mill (No. Policy: RSPO/65/SCPP/BSS, Rev. 01, dated 6th April 2013). The document contains: 1) Objectives; 2) Scope; 3) Definition; 4) General Information; 5) Responsible Person; 6) Procedure; 7) Special Condition; 8) Administrative Tools; 9) Annexes; 10) Declaration. This procedure used for handling discrepancies if any documents of raw material received was invalid and also for product traceability.

Responsible person against the procedure applied is clearly mentioned on this document. All the elements specified in the Supply Chain requirements are covered in the procedure. Reference of this procedure:

- Technical Guidelines for Palm Oil Mills – I Minamas Plantation - Procedure of Records Handling - Working Guidelines for Field Assistant TQEM - Supply Chain Certification Requirements - RSPO Supply Chain Certification Standard, Final Document November 25th, 2011


1.2

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

Documented procedure to separate of raw materials products (certified and non-certified) following are:

Procedure of Raw Materials Identification: Raw materials of POM were FFB’s sourced from Core Plantation, Smallholder Plantation or External Plantation, identified through documents: FFB Delivery (RSPO certified/non-certified mark, Seal nr, Estate, Division, Delivery Date, Quantity and Quality FFB) appropriate with No. Policy: 721/TQEM-PKA/08; Inspection of FFB quality.

Product Identification including: Shell; Fiber; Palm Kernel (No. Silo/Label, No. Lot, No. Serial Product, RSPO certified/non-certified Mark); CPO (based on Serial Number or grade specification, RSPO certified/non-certified mark).

Product Traceability started from FFB receiving up to CPO storage process. FFB processing with RSPO certified and non-certified marked must be separated within production line, from entering Sterilizer until Storage Tank and Bulking.


2 Purchasing and goods in

2.1

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

PT BSS only receiving and processing of all FFB’s from their own certified plantation, there is no outside/external or non-certified product was processed in Gunung Aru Factory POM.

Sample document of receiving FFB certified dated 23rd April 2013.

FFB Delivery Document (SPB) No. Serial: 411.13.0000.50149, No. Vehicle: DA 9621 BG, Harvesting Block: D030; Amount of Bunches: 800 FFB, Division: 2, RSPO certified mark/chop is available.

Weight Bridge Slip (No. Ticket: 106376), FFB Quality Inspection Report & CPO Processing Report/Daily Production


ASSESSMENT REPORT


Report has been mark/chop with RSPO certified.


2.2

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

This clause was stated in the procedure for Identification and Traceability of Product at Minamas Plantation Palm Oil Mill (No. Policy: RSPO/65/SCPP/BSS, Rev. 01, dated 6th April 2013). If the monthly production of FFB certified or non-certified processed is over projection, POM should be inform to the Certification Body immediately. CPO and Kernel product must be recorded in the report, then it will be known whether tonnage is excess of budget or not.


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.

Under the procedure for Identification and Traceability of Product at Minamas Plantation Palm Oil Mill (No. Policy: RSPO/65/SCPP/BSS, Rev. 01, dated 6th April 2013).

DECLARATION-5: PT Bersama Sejahtera Sakti stated will keep an accuracy, completeness, updating record and report access which include of all these Supply Chain Certification requirements able to reported periodically. Retention time of all records and reports should be at least five (5) years.

Based on document verification, all documents covering of these aspects (Supply Chain) are well recorded and updated since 2012 (after certified).


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

Under the procedure for Identification and Traceability of Product at Minamas Plantation Palm Oil Mill (No. Policy: RSPO/65/SCPP/BSS, Rev. 01, dated 6th April 2013).

DECLARATION-5: PT Bersama Sejahtera Sakti stated will keep an accuracy, completeness, updating record and report access which include of all these Supply Chain Certification requirements able to reported periodically. Retention time of all records and reports should be at least five (5) years.

Based on document verification, all documents covering of these aspects (Supply Chain) are well recorded and updated since 2012 (after certified).


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.

Gunung Aru Factory POM has the records and balancing sheet of FFB’s RSPO certified and delivery of certified CPO/Kernel every month (Monthly Summary of Sustainable FFB, CPO & Kernel April 2012 - March 2013) and three (3) monthly period (quarterly). These entire documents specify of material category as Sustainable Products with Segregated


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.

Since PT Bersama Sejahtera Sakti has certified on July 5th, 2011, there is no request/selling of product with RSPO certified claimed. Nonetheless the company has a relevant document for demonstrable (such as: Sales Contract), if in the case of later on they have request for claim certified product, according to this requirement clause.

Sample document:


ASSESSMENT REPORT


Sales Contract No. 00086/BSS/KTR-IKS/LOK/XII/2013 (for Nut Kernel delivery), dated February 22nd, 2013. Invoice No: 00287/BSS/II/2013, dated 28th February 2013.

Sales Contract No. 00164/BSS/KTR-MKS/LOK/XII/2013 (for CPO delivery), dated February 1st, 2013. Invoice No: 00288/BSS/III/2013, dated 4th March 2013.

The code of RSPO Certified Segregation is available on the document.


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

(e) Reference to related transport documentation

Since PT Bersama Sejahtera Sakti has certified on July 5th, 2011, there is no request/selling of product with RSPO certified claimed. Nonetheless the company has a relevant document for demonstrable (such as: Sales Contract), if in the case of later on they have request for claim certified product, according to this requirement clause. Sample document:

Sales Contract No. 00164/BSS/KTR-MKS/LOK/XII/2013 (for CPO delivery), dated February 1st, 2013. The code of RSPO Certified Segregation is available on the document.

The document contains of:

a. Name and address of buyer: PT. WAHANA CITRA NABATI, Gedung Sudirman Plaza, Plaza Marien Lantai 12, Jl. Jend. Sudirman Kav 76-78 Setiabudi Jakarta Selatan, DKI Jakarta 12910.

b. Date of invoice issued: March 4th, 2013.

c. Product: CPO (Crued Palm Oil In Bulk); Quality: FFA (AS Palmitic): 5.00% max, Moisture and Impurities: 0.50% max; RSPO Certified Segregation.

d. Quantity: 2,000,000 Kg.

e. Annexes: Invoice No: 00288/BSS/III/2013, dated 4th March 2013, Delivery Order (DO) No: 00256/00164/02/13/L-BSS-

MKS and No: 00258/00164/03/13/L-BSS-MKS, Tax Invoice No: 010.000-13.00000022.


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.

Procedure: Identification and Traceability of Product at Minamas Plantation Palm Oil Mill (No. Policy: RSPO/65/SCPP/BSS, Rev. 01, dated 6th April 2013). Declaration-6 stated:

PT Bersama Sejahtera Sakti states able to perform a physical separation of FFB product between RSPO certified and non-certified. Segregation will started from the beginning of process up to storage tank and will not blended it all or make sure that contamination allowed is less than 5%. Thus the buyers know that product purchased is appropriate with Clause 5.1 on this SCC requirements, at least 95% of its product is certified.

Production data in the Monthly Summary of Sustainable FFB, CPO & Kernel April 2012 - March 2013 and three (3) monthly


ASSESSMENT REPORT


period (quarterly), shows that the Gunung Aru Factory POM receiving, processing and produces of 100% certified sources.


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 the Monthly Summary of Sustainable FFB, CPO & Kernel April 2012 - March 2013 and three (3) monthly period (quarterly), shows that the Gunung Aru Factory POM receiving, processing and produces of 100% certified sources.

Production Daily reports can be traced back to source suppliers of certified estates within PT Bersama Sejahtera Sakti. Traceability document includes: Production Daily Report, Report of Analysis Laboratory, FFB Grading Reports, Weight Bridge Slip, FFB Delivery Slip and Division/Afdeling Daily 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

The crush is covered through a signed and enforceable agreement

Installation of processing line at Gunung Aru Factory POM, from CPO until Nut Cracker process are integrated in one line management, there is no palm kernel crush separately managed.


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

SCC training has been conducted on April 13th, 2013 at Gunung Aru Factory POM Office. Training material: Matrix of SCCS training Module D – CPO Mill Segregation, attended by 20 persons from Mill and Estates. Minutes of training event is available and well recorded by the organization.


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.

On the procedure: Identification and Traceability of Product at Minamas Plantation Palm Oil Mill (No. Policy: RSPO/65/SCPP/BSS, Rev. 01, dated 6th April 2013). Declaration-7 CLAIM stated:

PT Bersama Sejahtera Sakti states that all products (CPO and PK) with RSPO certified claim is appropriate to the RSPO Guideline for Communications and Claims.

Since PT Bersama Sejahtera Sakti has certified on July 5th, 2011, there is no request/selling of product with RSPO certified claimed



ASSESSMENT REPORT


3.3. Conformity Checklist of Certificate and Logo Use

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

X or√

S-2 PT BSS have Guidelines To The Use Of Certification Marks that explain about usage of logo

RSPO and Mutu Certification

√


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

X or√

S-2 PT BSS use loga RSPO in all document and logo RSPO and MUTU CERTIFICATION without

certification number in all off product. It is allowed as the guidelines to the use of certification

Marks.

√


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

X or√

S-2 PT BSS use RSPO logo in all documents and off product as guidelines to the use of certification

Marks.

√


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

X or√

S-2 PT BSS use RSPO logo in all documents and off product as guidelines to the use of certification

Marks.

√



ASSESSMENT REPORT


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.

X or√

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 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 Labor 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.

X or√

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).

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

√


ASSESSMENT REPORT


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.

X or√

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.

X or√

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.

X or√

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.

√


7.5

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

X or√

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

√


ASSESSMENT REPORT


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.

X or√

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.

√



ASSESSMENT REPORT


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

3.5.1 Identification of Findings, Corrective Actions and Observations at Surveillance-1 Assessment

CAR No

Ref Std

Finding Area Grade Time

Limits Corrective Action Observation Status

Closing Date

2012.01 Minor 4.7.4

Periodic checks for high risk workers. There is a periodic health examination data to 10 workers of Gunung Aru Mill on February 4, 2012 by a company doctor, such as, workers boiler operator, the operator of the cooking station, press operators, mechanics, but the results of health examination just concluded as healthy and sick. Periodic medical examination is carried out over a year since the last inspection in October 2010 and is advised to conduct periodic health examinations in accordance with the Minister of Labour Regulation 2 of 1980 and corresponding inspection requirements of high-risk occupations.

Mill Minor S-2 BSS must conduct periodic medical examinations in accordance with the Minister of Labor Regulation no.2 of 1980 and corresponding inspection requirements of high-risk occupations

The company has shown records examination periodically in 2011, 2012 and 2013 by a doctor who has a certificate Hyperkes, on schedule for all workers who at risk. example:

16 and 20 December 2011,

examination for workers traction,

sprayers, and fertilizers

9 and 13 March 2012 for spray and

fertilizer workers;

9 February 2012 for warehouse

and traction workers

2 April 2013 - examination of

sprayer and fertilizer workers

24 April 2013 for traction and

warehouse workers.

Closed 24/4/2013

2012.02 MB-SC 3.4

Supply chain model in the sales contract. BSS has shown Sales Confirmation document No.00132/BSS/KTR-MKS/LOK/II/2012 on February 1, 2012 which describes the trade name of the CPO (Crude Palm Oil) and Sales Contract documents

Mill Minor S-2 BSS must explain the supply chain model used in the sales contract documents in accordance with standard operating procedures that set Gunung Aru Palm Oil Mill Mass Balance models in the supply chain.

Based on declaration-2 MINAMAS dated 6 April 2013, model of supply chain system converted from Mass balance into segregation. BSS has shown sales contract and invoice documents that stated supply chain model used, a stamp "RSPO Certified Segregation" refers to a

Closed 24/4/2013


ASSESSMENT REPORT


CAR No

Ref Std



Closing Date

No.00060/BSS/KTR-IKS / LOK/II/2012 on February 22, 2012 which describes the trade name of Palm Kernel, but does not explain the supply chain model that is used in accordance with standard operating procedures that set Gunung Aru Mill Mass Balance models in the supply chain.

memorandum from the Head PSQM Number 002/PSQM-UM/II/2013 dated February 27, 2013. Example Sales Confirmation No. 00164/BSS//KTR-MKS/LOK/II/2013 dated 01 February 2013 – Invoice No. 00288/BSS/III/2013 dated 04 March 2013 – sales CPO 2.000.000 kg – to PT Wahana Citra Nabati – stamp “RSPO Certified Segregation”; Sales Contract No. 00086/BSS/KTR-IKS/LOK/II/2013 dated 22 February 2013 – Invoice No. 00287/BSS/II/2013 dated 28 February 2013 – sales 250.000 kg Kernel to PT Sinar Mas Agro Resources and Technology Tbk – stamp “RSPO Certified Segregation”.

2012.03 MB-SC 4.1

Supply chain models and CPO certified in the invoice. BSS has to make sure all invoices are issued for shipments of palm oil contains the necessary information such as invoice No.PDN/00226/BSS/III/2012 for CPO products that describe The name and address of purchaser, date of issuance of invoice, a description of the product, the amount of product shipped , references to documents relating to transportation. However, the invoice does not describe

Mill Minor S-2 BSS must explain the information in the invoice and supply chain model RSPO certified products are used in accordance with standard operating procedures that set Gunung Aru Mill Mass Balance models in the supply chain.

BSS has shown claim of segregation system in any sales documents (Invoice and Tax Invoice) in the form of stamp "RSPO Certified Segregation Example Sales Confirmation No. 00164/BSS//KTR-MKS/LOK/II/2013 dated 01 February 2013 – Invoice No. 00288/BSS/III/2013 dated 04 March 2013 – sales CPO 2.000.000 kg – to PT Wahana Citra Nabati – stamp “RSPO Certified Segregation”; Sales Contract No. 00086/BSS/KTR-IKS/LOK/II/2013 dated 22 February

Closed 24/4/2013


ASSESSMENT REPORT


CAR No

Ref Std



Closing Date

information about the proficiency level supply chain models are used and that the product is RSPO certified.

2013 – Invoice No. 00287/BSS/II/2013 dated 28 February 2013 – sales 250.000 kg Kernel to PT Sinar Mas Agro Resources and Technology Tbk – stamp “RSPO Certified Segregation”.

2012.04 MB-SC 6.1

RSPO certified palm oil claims. Gunung Aru Mill, PT.BSS not able to show the use of claims to support the RSPO certified palm oil in both sales and purchase documents, according to the RSPO Guidelines for Communication and Claims.

Mill Minor S-2 Gunung Aru Mill, PT.BSS uses the claim to support the RSPO certified palm oil in both sales and purchase documents, according to the RSPO Guidelines for Communication and Claims

Company make claims regarding of RSPO certified oil palm in products and sales documents (Invoice and Tax Invoice) bu stamp of “RSPO Certified Segregation”. Example Sales Confirmation No. 00164/BSS//KTR-MKS/LOK/II/2013 dated 01 February 2013 – Invoice No. 00288/BSS/III/2013 dated 04 March 2013 – sales CPO 2.000.000 kg – to PT Wahana Citra Nabati – stamp “RSPO Certified Segregation”; Sales Contract No. 00086/BSS/KTR-IKS/LOK/II/2013 dated 22 February 2013 – Invoice No. 00287/BSS/II/2013 dated 28 February 2013 – sales 250.000 kg Kernel to PT Sinar Mas Agro Resources and Technology Tbk – stamp “RSPO Certified Segregation”.

Closed 24/4/2013


ASSESSMENT REPORT


3.5.2

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

CAR No

Ref Std


Limits Corrective Action Observation Status Closing Date

2013.01 Minor 5.2.1

Posters and warning signs of protected species. Organizations cannot able to show posters and warning signs of protect protected species in PT BSS area

PTE and GKE

Minor S-3 Company must make Posters and warning signs of protected species, publish, distribute and socialize to all employees and public, as well as information handling

Open

2013.02 Major 6.5.2

Company Regulations. BSS cannot show revision of Company Regulations that has been expired since March 2012.

PTE Major 25 June 2013

Company must show valid Company Regulations and have approved by Manpower Agency

29 April 2013 Evidence of agreement between worker union (SPM) and PT BSS management regarding to Company Regulations dated 25 April 2013, such as : - SPM Gunung Aru Estate: chief

(Mr. Alfianur) and secretary (Mr. Karsono)

- SPM Gunung Kemasan Estate: chief (Mr. L. Mahyudin) and secretary (Mr. Akhmad Maulana)

- SPM Laut Timur Estate: chief (Mr. Nursiyo) and secretary (Mr. Tiopan Sinaga)

- SPM Pantai Timur Estate: chief (Mr. Victor Marpaung) and secretary (Mr. Juni Winarto)

Closed 29 April 2013


ASSESSMENT REPORT


3.5.3 Opportunity for Improvement

No Ref.Std Descriptions

1. 1.1

Information Record Systems - Companies should establish a system to record requests and responses (Incoming letter and Outgoing letter) more

simple and uniform in all estate, to ensure traceability of incoming mail (information request) against outgoing letter (information response).

2. Major 2.2.2 Maintenance of boundary poles - Maintenance and replacement of the missing boundary poles according to plan.

3. Major 2.2.3 Land issues - Company have to follow-up Regents letter No. 525/138/Disbun/2013 dated March 19, 2013 about Land Conflict.

4. Minor 4.3.2 Erosion measurement methods - Company should review the method to measure soil erosion by common instrument

5. 4.4

Reference quality standards - Standard quality used for testing of river water and wastewater for land application, should reference to certain

regulations.

6. Major 4.7.2 OHSAS Expert Training – OHSAS Training programs for PTE and GKE should implement according to the schedule

7. Minor 4.7.6 First Aid Emergency Facilities - All employees should get First Aid Emergency services regardless of employment status.

8. Major 5.2.2 Monitoring of flora and fauna - Format recording and monitoring of flora and fauna should be uniform for all estates

9. Minor 5.5.1 Simulation fire handling - Company should ensure that all fire fighting personnel have followed appropriate training.

10. Major 5.6.2 Emissions test - Company should have a system to monitor emissions testing implement in a timely manner.

Minor 6.5.2

Employment contract - Company should review the Article 9 of Contracts, so it is not only limited to the fulfillment of PPE, but also include all

applicable labor laws.

11. 6.9 Gender Policies - Company should ensure the gender policy and grievance mechanism has been socialized to all women workers.

3.5.4 Noteworthy Positive Components

No. Ref. Std. Descriptions

1 Providing and supporting documents are well available

2 Relevant personnel understand and know the fulfillment and implementation of RSPO standards.


ASSESSMENT REPORT


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

Public Issues (Institution/ NGO/Community)

Management Responses Auditor Responses

Desa Batu Tunau (Community Leaders)

1. Companies provide assistance for villages such as road repair, compensation widows and transportation of schoolchildren. But the CSR deemed to be lacking, the community had proposed assistance but not responded for example: 1. assistance Kindergarten equipment 2. Assistance Al-Qur'an Kindergarten 3. Proposals for lighting

2. Smalholders socialization only for officials first , not yet until society

3. FFB from villagers who have palm plantation is not

accepted by the company and company never give training to farmers.

4. Related activities of replanting, there is no socialization.

1. Assistance equipment for kindergarten (Desks / Furniture) has not been realized due to Proposal dated 22 April 2013 while the Manager (limit of Authority) are not in place (Leaves). Proposal will resubmit after his return Company have given Rp.300.000/month for Al-Qur'an Kindergarten according to the approved budget, so if there is an increase submission must be approved by management and budgeted for the following year.

2. The company has made nurseries in August 2012 for smalholders, but postponed because permission has not been signed by the Regent.

3. Replanting program in the new PTE is planned in 2017/2018 so there has not yet socialized to society,

Development of communities surrounding PT BSS is dynamic, company need more communicative and responsive to any information submitted by society so that the social negative impact can be managed

Desa Sejakah (Community Leaders)

1. The existence of companies have a positive impact such as local employment and roads maintenance

2. Coaching and support from companies deemed to be lacking. Assistance is limited to the mosque and widows; there is no assistance for other activities such Independence Day, sports and arts activities.

3. Development of smallholders have socialized since 5 years ago, and the people have to cooperate , but until

1. Company provided the assistance based on the proposals from the Village, so if there is no proposal, company cannot give the assistance.

2. Assistance realized refers to LOA and CSR program, so if a proposal exceeds of the limit budget, it must obtain approval from the Management.

The company has plans for social programs such as CSR. CSR implemented based on a budget. PT BSS needs need more communicative with local communities so information can be understood both sides, such as regular meetings to explain progress of smallholders and CSR program.


ASSESSMENT REPORT


Public Issues (Institution/ NGO/Community)

Management Responses Auditor Responses

now there is no realization

3. The company has made nurseries in August 2012, but it postponed because permission has not signed by the Regents.

Desa Bekambit (Community Leaders)

1. Community feel Assistance perceived are less, only rice every 3 month for poor people and widows, and there is no community empowerment.

2. Local people who work in the company was very little, society realize their less education, but they expected company give training, or salary support for teachers

3. The community complained of frequent flooding that

makes roads damaged cause clogged river where companies dump waste into the river. In addition, roads are often impassable by vehicle operations, so that the company should contribute to repair it.

4. Society has been socialized since 5 years ago and is

willing to join in smallholders, but there is no realization.

1. The assistances are refer to annual CSR by management. So if there is proposal beyond the budget, it it must obtain approval from the Management.

2. Work opportunity in estate mostly is harvester while most people unable so company recruit from other village. based on observation, river siltation have occurred by sedimentation . Natural river washing is not recommended as it will damage the ecosystem and the environment. In addition, Estate and factory have manage waste

3. FFB transportation did not passed the access road through the village. It might be other contractor

4. The company has made nurseries in August 2012, but it

postponed because permission has not signed by the Regents.

5. Society has submitted a letter to ask the progress of smallholders dated April 6, 2013, but there is no response from the management.

CSR programs should not only be limited of financial, but it needs community empowerment (social empowerment) to be more productive, such as counseling / technical agricultural cultivation training more intensive. So society can independent.

Communication and socialization environmental impact of plantation operations to society, need regularly and intensively, so people can understand about environmental management undertaken by the company.


ASSESSMENT REPORT


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:

Minamas Plantation – SIME DARBY

Mutuagung Lestari

Head of PSQM

Lead Auditor

Mohamad Pira Baharan

Deni A Novendi

17 May 2013

17 May 2013


ASSESSMENT REPORT


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

Date of Contact

1 Batu Tunau Village

Kota baru district, South Kalimantan province

Interviews 24 April 2013

2 Sejakah Village


Interviews

24 April 2013

3 Bekambit Village


Interviews

24 April 2013

4 Badan Pertanahan Nasional Kabupaten Kotabaru

Jl. Veteran No. 15 Kotabaru 72116 Interview 24 April 2013

5 Badan Lingkungan Hidup Daerah Kabupaten Kotabaru

Jl. Transmigrasi No. 94 KM. 3,5 Kecamatan Simpang 4 72271

Interview 24 April 2013

6 Dinas Perkebunan Kabupaten Kotabaru

Jl. Dharma Praja No. 2 Gunung Tinggi 05186076051 Interview 24 April 2013

7 Dinas Kehutanan Kabupaten Kotabaru

Jl. P. Kesuma Negara Kotabaru 72116 KalSel

Interview 24 April 2013

8 Dinas Sosial, Tenaga Kerja dan Transmigrasi Kabupaten Kotabaru

Jl. Dharma Praja No. 4 Gunung Tinggi, Kecamatan Batu Licin

05186076012 Interview 24 April 2013

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

Appendix 2. Assessment Program


ASSESSMENT REPORT


DATE 23 – 26 April 2013

TIME PROCESSES / CLAUSES TO BE AUDITED AUDITOR

23/04/2013 08.00 –10.00 13.30 – 14.00 14.00 – 16.00 16.00 – 17.00

Travelling Travelling from Jakarta to Banjarmasin Travelling from Banjarmasin to Kotabaru Travelling from Kotabaru to PT BSS Opening Meeting

All TEAM

24/04/2013 08.00 – 12.00 13.00 – 17.00

Field Observation Gunung Kemasan Estate Legal boundaries, housing complex and facilities (clean water, electric, worship buildings, health clinic, school, landfill and emergency response), harvesting activity, spraying activity, conservation area, IPM implementation, chemical storage (mixing and handling mechanism), workshop and interviews (payments, sexual and racial harassment, child labor, religious, complaints procedures)

Stakeholders Consultations (Villagers) and Government Institution Lunch & Pray

Documentation Review e.g.

Public Consultation clarification

Field Observation Gunung Aru P.O.M

Documentation, workers interview (payment, training, facilities, racial harassment), safe working practices, safety and health equipments, fuel, water usage, process station, waste water treatment plant, workshop, hazardous waste storage and handling.

MES / WSN

DEN

WSN

DEN / MES

25/04/2013 08.00 – 12.00 13.00 – 17.00

Field Observation Pantai Timur Estate Legal boundaries, housing complex and facilities (clean water, electric, worship buildings, health clinic, school, landfill and emergency response), harvesting activity, spraying activity, conservation area, IPM implementation, chemical storage (mixing and handling mechanism), workshop and interviews (payments, sexual and racial harassment, child labour, religious, complaints procedures)

Stakeholder consultaton (internal stakeholders) Lunch/Pray

Continue document review

Field observation and Stakeholders consultation clarification

DEN / MES

WSN

MES / WSN

DEN

26/04/2013 08.00 – 09.00 09.00 – 11.00 12.30 – 13.00 15.30 – 17.00

Clossing meeting Travelling Travelling from PT BSS to Kotabaru Travelling from Kotabaru to Banjarmasin Travelling from Banjarmasin to Jakarta

ALL TEAM


ASSESSMENT REPORT


Appendix 3. Glossary

AMDAL : Analisis Mengenai Dampak Lingkungan (Social and Environmental Impact Assessment)

APAR : Alat Pemadam Api Ringan (Fire Extinguisher)

APD (PPE) : Alat Perlindungan Diri (Personal Protective Equipment)

B3 : Bahan Beracun and Berbahaya (Hazardous Material Waste)

BLHD : Badan Lingkungan Hidup Daerah (District Environment Body)

BOD : Biological Oxygen Demand

BPN : Badan Pertanahan Nasional (National Land Agency)

BSS : PT. Bersama Sejahtera Sakti

CD : Community Development

CPO : Crude Palm Oil

CSR : Coorporate Social Responcibility

GAE : Gunung Aru Estate

GAF : Gunung Aru Factory

GKE : Gunung Kemasan Estate

HACCP : Hazard Analysis Critical Control Point

HCV : High Conservation Value (Nilai Konservasi Tinggi)

HGU : Hak Guna Usaha. (Land Use Permit)

IUP : Izin Usaha Perkebunan. (Plantation Operation Licence)

IPAL (WWTP) : Instalasi Penyaluran Air Limbah (Wastewater Treatment Plant)

JAMSOSTEK : Jaminan Sosial Tenaga Kerja (Social Assurance of Labor)

K3 (OHS) : Keselamatan dan Kesehatan Kerja. (Occupational Health and safety)

KLH : Kementrian Lingkungan Hidup (Environment Ministry)

LC : Land Clearing

LTE : Laut Timur Estate

OER : Oil Extraction Rate

P2K3 : Panitia Pelaksana Keselamatan and Kesehatan Kerja ( Occupational Health and safety Guiding Committee)

PHT : Pengendalian Hama Terpadu (Integrated Pest Management)

PK : Palm Kernel

PKO : Palm Kernel Oil

PKS (POM) : Pabrik Kelapa Sawit (Palm Oil Mill)

PP : Peraturan Pemerintah (Government Regulation)

PTE : Pantai Timur Estate

POM : Palm Oil Mill

RKL/RPL : Rencana Kelola Lingkungan/ Rencana Pemantauan Lingkungan (Environmental Management Plan/ Environment Monitoring Plan)

PSD : Plantation Services Departement

PSQM : Plantation Sustainability and Quality Management

SOP : Standard Operating Procedure

SP : Serikat Pekerja (Worker Union)

SPK : Surat Perjanjian Kerja (Minutes of Agreement)

TBS (FFB) : Tandan Buah Segar (Fresh Fruit Bunches)

UKL/UPL : Upaya Kelola Lingkungan/ Upaya Pemantauan Lingkungan (Environmental Management Efforts/ Environmental Monitoring Efforts)

Documents

· PT. MUTUAGUNG LESTARI ASSESSMENT REPORT SPO – 4006a.5 Page 3 by Mutuagung Lestari for Gunung Aru POM- PT Bersama Sejahtera Sakti - SIME DARBY Plantation 1.0 SCOPE OF THE CERTIFICATION