· 1.2.10 Registered as RSPO member 1-0096-11-000-00, 31 March 2004 ... (ISO 9001-2008/SNI...

PT. MUTUAGUNG

LESTARI

ASSESSMENT REPORT

Roundtable on Sustainable Palm Oil Certification

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

Plantation Management/Owner : GOLDEN AGRI RESOURCES Ltd.

Plantation Name : Tanjung Kembiri Mill,

PT FORESTALESTARI DWIKARYA

Location :

Village of Kembiri, Sub district of Membalong,

District of Belitung, Province of Bangka Belitung,

Indonesia

Certificate Code : MUTU-RSPO/037

Date of certificate issue : 21 April 2014

Date of certificate expiry : 20 April 2019

Assessment Assessment

Date PT. Mutuagung Lestari

Auditor Checked

by Approved

by

ST1 10 – 12 June 2013 Oktovianus Rusmin, Muardi

Marwas, Moh. Arif Yusni, Isyana Dewi Taufik

Margani Tony

Arifiarachman

ST2 15 – 19 July 2013

Bukti Bagja, Octo HPN Nainggolan,

Oktovianus Rusmin, Muardi

Marwas, Naila Karima

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:

ST2 29 October 2013 14 April 2014 21 April 2014

http://www.mutucertification.com/

PT. MUTUAGUNG

LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 ii Prepared by Mutuagung Lestari for Tanjung Kembiri POM – PT Forestalestari Dwikarya, Golden Agri Resources Ltd.

TABLE OF CONTENT

FIGURE

Figure 1. Location Map and Operational Map

1

1.0 SCOPE of the SURVEILLANCE ASSESSMENT

1.1 National Interpretation Used 2

1.2 Organization Information 2

1.3 Type of Assessment 2

1.4 Location of Plantations, Mill and Area Statement 2

1.5 Description of Supply Base 3

1.6 Dates of Plantings and Cycles 4

1.7 Tonnage Certified 4

1.8 Other Certifications 4

1.9 Time-Bound Plan for Other Management Units 4

2.0 ASSESSMENT PROCESS

2.1 Certification Body 6

2.2 Assessment Team 6

2.3 Assessment Methodology, Assessment Process and Locations of Assessment 6

2.4 Stakeholder Consultation and List of Stakeholders Contacted 8

2.5 Date of Next Surveillance Visit 9

3.0 ASSESSMENT FINDINGS

3.1 3.2

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

10 34

3.3 Conformity Checklist of Certificate and Logo Use 38

3.4 Summary of RSPO Partial Certification 39

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

40

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

4.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Signing of Assessment Findings 61

APPENDICES

1. List of Stakeholders Contacted in the RSPO Certification Process 62

2. Assessment Program 63

3. Glossary 65

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 1 Prepared by Mutuagung Lestari for Tanjung Kembiri POM – PT Forestalestari Dwikarya, Golden Agri Resources Ltd.

Figure 1. Location and Operational Map of PT Forestalestari Dwikarya

PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 Page 2 Prepared by Mutuagung Lestari for Tanjung Kembiri POM – PT Forestalestari Dwikarya, Golden Agri Resources Ltd.

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 Golden Agri Resources Ltd

1.2.2 Contact person Ismu Zulfikar

1.2.3 Company address and site address Head Office : Sinar Mas Land Plaza, Tower II, 30th Floor Jl. MH Thamrin No. 51, Jakarta 10350, Indonesia Phone: +62-21-5033 8899. Fax: +62-21-5038 9999 Site : Kembiri Village, Membalong Sub district, Belitung District, Bangka-Belitung Province, Indonesia.

1.2.4 Telephone (+62-21) 318 1388

1.2.5 Fax (+62-21) 318 1389

1.2.6 E-mail [email protected]

1.2.7 Web page address www.smart-tbk.com

1.2.8 Company status Private

1.2.9 Management Representative who completed the application for certification

Ismu Zulfikar (Head of Environmental Departement)

1.2.10 Registered as RSPO member 1-0096-11-000-00, 31 March 2004

1.3 Type of Assessment

1.3.1 Scope of Assessment Palm Oil Mill and supply base

1.3.2 Type of certificate Single

1.3.3 Company names listed in the certificate PT Forestalestari Dwikarya

1.3.4 Number of management unit One (1) mill Tanjung Kembiri Mill with FFB supply from two (2) estates which are Tanjung Kembiri Estate and Tanjung Rusa Estate

1.4 Locations of Mill, Plantations and Area Statement

1.4.1 Location of Mill

Name of Mill Location

GPS

Latitude Longitude

Tanjung Kembiri Mill (TKMM)

Kembiri Village, Membalong Sub District, Belitung District, Bangka-Belitung Province, Indonesia.

03º 01' 52.55" N

107º 46' 18.60" E

1.4.2 Location of Supply Base

Name of Supply Base Location

GPS

Latitude Longitude

mailto:[email protected]

http://www.smart-tbk.com/


ASSESSMENT REPORT


Tanjung Kembiri Estate (TKME)

Kembiri Village, Membalong Sub District, Belitung District, Bangka Belitung Province, Indonesia

03º 00' 54.58"

107º 46' 08.19"

Tanjung Rusa Estate (TRSE)

Kembiri Village, Membalong Sub District, Belitung District, Bangka Belitung Province, Indonesia

03º 02' 38.05" 107º 45' 15.56"

1.4.3 Tenure

Private -

State 11,337.58 Ha

Community -

1.4.7 Area Statement

Total area 11,337.58 Ha

Mature area 10,484.67 Ha

Immature area - Ha

Mill 9.53 Ha

Emplacement 77.17 Ha

Infrastructure 366.80 Ha

Nursery - Ha

Occupation - Ha

Others area 354.96 Ha

HCV 466.13 * 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 (%)

Tanjung Kembiri Mill

60 253,018.85 54,777.40 21.50 1,214.07 5.77 - -

*Production data on July 2012 –June 2013

1.5.2 Description of Estates

Name of Estates Total Area

(Ha)

Planted Area (Ha)

FFB (tonnes/year)

Yield (tonnes/ha/year)

Supplied to Mill

FFB (tonnes/year)

%

Tanjung Kembiri Estate 6,086.31 5,839.11 142,558.87 24.41 142,558.87 100

Tanjung Rusa Estate 5,251.27 4,645.56 110,459.98 23.78 110,459.98 100

TOTAL 11,337.58 10,484.67 253,018.85 24.13 253,018.85 100

* Production data on July 2012 –June 2013

1.5.3 Smallholders and other source

Name of sources Members Location

Total Area (Ha)

FFB (tonnes/year)

Supplied to Mill

FFB (tonnes/year)

%

- - - - - -

*Tanjung Kembiri Mill does not received FFB from other source

1.5.4 Product categories FFB/CPO/PK


ASSESSMENT REPORT


1.6 Dates of Plantings and Cycles

1.6.1 Age profile of planted palms*

Planting Year Hectarage

Tanjung Kembiri Estate (Ha)

Tanjung Rusa Estate (Ha)

Total (Ha)

1995 1,726.48 - 1,726.48

1996 2,080.89 1,203.24 3,284.13

1997 1,878.19 3,157.15 5,035.34

1998 153.55 285.17 438.72

TOTAL 5,839.11 4,645.56 10,484.67

1.6.2 New Planting area after November 2007 - Ha

1.6.3 Planting Cycle 1st/2nd Cycle 25 Years

1.7 Approximate Tonnage Certified

1.7.1 Past Annual Claim Certified Product

FFB Production - Tonnes/year

CPO Production - Tonnes/year

Palm Kernel (PK) Production - Tonnes/year

Palm Kernel Oil (PKO) Production - Tonnes/year

1.7.2 Claim Certified Tonnage of FFB

Name of Estates Total Area

(Ha) Planted Area

(Ha) FFB

(tonnes/year) Yield

(tonnes/ha/year)

Tanjung Kembiri Estate 6,086.31 5,839.11 145.978 25

Tanjung Rusa Estate 5,251.27 4,645.56 111,493 24

TOTAL 11,337.58 10,484.67 257,471 24.56

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 (%)

Tanjung Kembiri Mill

60 257.471 56.644 22 15.448 6,00 - -

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 ISCC (International Sustainability Carbon Certification) on 2012

1.9 TIME BOUND PLAN

MANAGEMENT UNIT LOCATION Time Bound Status

P O M Estate (Supply Base)


ASSESSMENT REPORT


Pangkalan Panji PT Sawit Mas Sejahtera South Sumatera 2013 2013

Bumi Sawit PT Bumi Sawit Permai South Sumatera 2013 2013

Muara Kandis PT Djuanda Sawit Lestari South Sumatera 2013 2013

Smallholder (KKPA Pandawa)

South Sumatera 2013 2013

Smallholder (Pandawa Plasma)

South Sumatera 2013 2013

Sungai rungau PT Sumber Indah Perkasa and PT Binasawit Abadi Pratama

Central Kalimantan 2013 Certified

Bukit Perak PT Bumi Permai Lestari Bangka Belitung 2013 Audited

Tanjung Kembiri PT Forestalestari Dwikarya Bangka Belitung 2013 Audited

Sungai Buaya PT Sumber Indah Perkasa Lampung 2014 2014

Smallholder (KKPA Gedung AJi Lama)

Lampung 2014 2014

Smallholder (KKPA Mesuji) Lampung 2014 2014

Sungai Merah PT Sumber Indah Perkasa Lampung 2014 Audited

Smallholder (KKPA Gedung AJi Baru)

Lampung 2014 2014

Kasuari PT Sinar Kencana Inti Perkasa

Papua 2014 2014

Smallholder (KKPA Sungai Panci)

Papua 2014 2014

PT Sumber Indah Perkasa (Mambruk Estate)

Papua 2014 2014

Senakin PT Purimas Sasmita & PT Sinar Kencana Inti Perkasa (Senakin Estate)

South Kalimantan 2014 2014

Pekawai PT Agrolestari Mandiri West Kalimantan 2014 2014

Smallholder (Kayung Plasma)

West Kalimantan 2014 2014

Kenanga PT Kencana Graha Permai West Kalimantan 2014 2014

PT Cahaya Nusa Gemilang West Kalimantan 2014 2014

Smallholder (Kencana Plasma)


Smallholder (Kenanga Plasma)


Ketayang PT Mitra Karya Agrindo Central Kalimantan 2015 2015

PT Agrolestari Sentosa Central Kalimantan 2015 2015

PT Aditunggal Mahajaya Central Kalimantan 2015 2015

Perdana PT Binasawit Abadi Pratama

Central Kalimantan 2015 2015

Kuayan PT Agrokarya Prima Lestari Central Kalimantan 2015 2015

PT Buana Adhitama Central Kalimantan 2015 2015

Belian PT Paramitra Internusa Pratama


PT Bangun Nusa Mandiri West Kalimantan 2014 2014

PT Kartika Prima Cipta West Kalimantan 2014 2014

PT Persada Graha Mandiri West Kalimantan 2014 2014

PT Buana Artha Sejahtera Central Kalimantan 2013 Certified

Golden Agri Resources Ltd run 17 mills and 54 estates in Indonesia and has achieved RSPO certified for 1 (one) mills and supply base in Indonesia. Golden Agri Resources Ltd has informed the Time Bound Plan progress, MUTUAGUNG has considered that Golden Agri Resources Ltd is comply with the RSPO requirement for Time Bound Plan.


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

ST2 1. Bukti Bagja (Lead Auditor Witnessed). Master of Science majoring environment, Indonesia University. He had involved in RSPO assessment and HCV for GIS. The training he has followed namely ArcGIS, MAPInfo, Global Mapper, ER MAPPER, ERDAS Imagine, Indonesian Sustainable Palm Oil auditor and Awareness RSPO, and Auditor/Lead auditor Management System Certification (ISO 9001-2008)

2. Octo HPN Nainggolan (Lead Auditor Witness) Indonesian citizen, Bachelor of Agriculture, majoring of Social Economics of Agriculture (Agribusiness). Seven years working experience since 2004 at oil palm Plantation Company in Indonesia and followed several trainings namely: Training of Conservation of Natural and Biological Resources in supporting HCV, Basic Plantation Management Program, Plantation Integrated Pest Management training, Management System Certification (ISO 9001-2008/SNI 19011-9001:2008), Environment Management System (ISO 14001:2004), SMK3 based on OHSAS, RSPO Lead Auditors Training Course endorsed by Proforest and Wildasia, Indonesian Sustainable Palm Oil (ISPO) Lead Auditor training course, supply chain certification system training and RSPO Renewable Energy Directive Lead Auditor training. Currently he worked as an auditor at Certification Body.

3. Oktovianus Rusmin (Auditor). Bachelor’s Degree in Social & Political Sciences Department of Anthropology. Specialists in the field of Social and Cultural (Social Impact & Conflict Resolution) and HCVF. Followed the Forest Management Auditor Training (FSC Standard), ISO 14001 Environmental Management System Training & SVLK (wood legality) auditors. He was several times involved in the assessment of Sustainable Forest Management Certification (Standard LEI). Had worked at the Center for the study of Anthropology, University of Indonesia; and experts to the field of Social Tropical Forest Trust (TFT) Indonesia. He was numerously involved the Social Impact Study and Identification HCV in Oil Palm Plantations and natural forest concessions. In this assessment activity, he conducted assessment of legal and social.

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

5. Naila Karima (Auditor). Bachelor of Public Health, Department of Occupational Health and Safety. Faculty of Public Health, University of Indonesia. She had experience working in private oil palm plantation companies in Indonesia. She had followed training such as ISPO Lead Auditor, awareness training the RSPO certification system, awareness training Occupational Health and Safety Management System (PP No. 50 tahun 2012), and Integrated Management System (OHSAS 18001:2007, ISO 14001:2004, and ISO 9001:2008).

2.3 Assessment Methodology, Assessment Process and Locations of Assessment

2.3.1 Figure of person days to implement assessment

ST2 Number of auditors : 4 auditor Number of days for ST-2 at site : 4.5 days Number of working days for ST-2 at site : 18 Working days

2.3.2 Detail process of assessment

ST2 Assessment is conducted to measure adequacy of implementation and consistency performed by PT Forestalestari Dwikarya – Tanjung Kembiri Mill to the requirement of National Interpretation of Republic of Indonesia from RSPO

http://www.mutucertification.com/



ASSESSMENT REPORT


Principle and Criteria for Sustainable Palm Oil Production (RSPO INA-NIWG, May 2008 and Supply Chain Requirement for CPO Mill)I. Assessment is performed in three methods: (1) Document review, aims to observe the adequacy of documentation; (2) Interview with the internal stakeholders (workers, worker union, management representatives) and external stakeholders (government, NGOs, and relevant village community) to obtain more detailed information to the company performance, and (3) field observation, aims to directly observe the adequacy of implementation in the plantation unit to meet the required standard. Some of the opportunities for improvement from ST2 are presented by MUTU auditor to the management unit and the result is the part that will be observed on the next visit of Surveillance-1 (S-1). All information obtained is recorded and becomes a part of Mutuagung Lestari (MUTU). Please find the assessment program in Annex 2.

2.3.3 Locations of Assessment

ST-2 The selection of sample location conducted by Auditor team is based on: 1. Minimal amount of sample location is determined by the formula of 0.8 √y. 2. Locations are chosen to represent each operational area. 3. Consideration of issues arising from the result of document review that are fundamental, important, and the

result of public consultation.

Sample locations selected namely: Location 1 Tanjung Kembiri Mill

1. Processing (from loading ramp to dispatch). Observation related to the processing of FFB into crude palm oil (CPO), means of fire emergency response, means of first aid emergency, and the implementation of Occupational Health and Safety (OHS).

2. Supporting Facilities. Observation is conducted with supporting facilities, such as workshop, material warehouse, hazardous waste warehouse, chemicals warehouse, Water Treatment Plant.

3. Installation of Wastewater Management. Observation of liquid waste management of the mill, aerobic and anaerobic ponds.

4. Mill Workers Public Facilities. Observation of the workers’ housing, clean water, places of worship, and sport facilities provided by the company.

Location 2 Tanjung Kembiri Estate

1. Land Use Title Poles. Located in Block M68, BT 32 in Block J66, BT35 in Block H64. 2. HCV Area. The riparians of Block H52, the tomb of KA Rahat in Block H60. 3. Land Application. The flatbed for Land application in Block K51 of Tanjung Kembiri Estate. 4. Monitoring Wells of Land Application. Located in the housing of Tanjung Kembiri workers in Block L57 and

Block L55. 5. Spraying at Block B31. The result of the interview with Spray Supervisor (Susilowati). All workers need to

understand the efforts of protecting riparian area by not applying chemicals (pesticide) in 5 staples on the left and on the right side of the river. Spraying team consists of 11 women and 1 man. All workers are equipped with personel protection equipment (avron, goggles, and gloves). There are no pregnant or breastfeeding women in the spray team. When a female worker is detected pregnant or breastfeeding, she will be transferred immediately to another work unit.

6. Pest and Disease Control in Block B35. Rats can be controlled biologically by using their natural enemy (tyto alba). There are nest boxes provided for the owls to breed. An active nest box is characterized by the existence of owlet and remaining food under the nest box.

7. Harvesting in Block H34. Interview with the Harvest Supervisor and harvest workers. All workers need to understand the techniques of good harvesting, the calculation of wages and working premiums have been systemized. Harvesters should avoid harvesting raw fruit in order to maintain quality. Company has provided penalties for workers if the harvest does not conform to the quality standards that have been set. Harvest workers are equipped with personal protection equipment (goggles), and working tools (wheel loaders and


ASSESSMENT REPORT


sickels). 8. Supporting Facilities in Division I. There is a place for washing the used packaging of pesticide, protectors

and knapshack. There are diesel warehouse, Hazardous Waste symbols are listed clearly, there are light fire extinguishers provided. There is a fertilizer warehouse, MSDS (occupational health/safety sheets for phosphate and Kieserite fertilizers), mats at the bottom of the fertilizers are provided so there will be no contamination with the floor. Processs of nesr box-making (owl nest) has been conducted. Hazardous waste warehouse with hazardous waste symbols are provided, as well as building insulation from the reach of the workers who are not concerned.

9. Public Facilities for Workers in Division I, II, and III. The visit to this location was focused on the observation of the housing and other supporting facilities.It showed that there are several supporting facilities around the housing complex of the workers, such as: places of worship, sports field. Based on the iformation obtained from local security guard, in this area there are 98 housing units. Eacof the unit has power supply (at 04:00 to 06:00 in the morning and at 17:30 to 22:00 in the evening). The company also provides clean water. Interview with the caretakers in the Daycare was also conducted and it is known that children of the workers who work in the estate were brought to the Daycare starting at 05:30 a.m to 14:00 p.m. There is only one nurse in the Daycare.

Location 3 of Tanjung Rusa Estate

1. Land Use Title Poles. Located in Block BT138 in Block S31, BT 135 in Block S32, BT138 in Block S33, BT133 in Block T33.

2. HCV Area. Restricted forest in the Block R34, low-lying area in N09, and riparian in Block P11. 3. Harvesting in Block S034. Based on the observation of harvesting and interview with the harvest workers, it

is known that the harvesters have been equipped with PPE (shoes, helmet, and goggles), working tools (Wheel loaders, sickels, axes, and sickle case), harvesting criterias, terms and contition of the penalties, and harvesting premiums.

4. Interview with Spray Workers in Block R032. Workers are provided with PPE (goggles, masks, aprons, gloves, and shoes), and periodic medical screening. The screening conducted currently is physical examination.

5. Interview with a worker (Manuring Supervisor). The result of the interview showed that the person concerned knows that their wages are in compliance with the Regional Minimum Wage issued by local government. The nominal of the wages is above the Regional Minimum Wage standard. There is also addition from their overtime and premiums, and rice benefits for the family (wife and 2 children, in IDR).

6. Supporting Facioities in Division I, II, and III. Waste warehouse, hazardous waste warehouse, and diesel warehouse in Division 3. Hazardous symbols have been installed according to the regulation. There is a verification of the recapitulation materials of pesticide in and out; the warehouses are insulated from the reach of children and unauthorized workers. There are warnings/MSDS.

7. PPE Warehouse and Place of Pesticide Mixing. Observation of the working equipment washing and the PPE of spray workers which is equipped with tanks.

8. Generator Set Room. Observation of the preventive activity of genset maintenance, verification of hazardous waste management (used lubricant) as the result of genset engine exile. The engine operator is equipped with personal protection equipment (earmuff and mask), the building is equipped with light fire extinguisher, oil trap, and the ground floor is made watertight to prevent the spills of used oil directly to the ground.

9. Clinic. Observation of clinical activities and interviews with the paramedics about health program, medical screening, integrated health service (posyandu) and management of infectious waste.

10. Public Facilities for Estate Workers in Division I and II. Observation of the workers’ housing, clean water, religious facilities, and sport facilities provided by the company.

11. Roda/Bridge Maintenance. Road/bridge maintenance is now taking place in Block RS 35 which is located on the border with people’s rice fields, in Block RS 32, and Block L11-12 of Tanjung Rusa Estate.

12. Public plantations belonged to the community of Perpat Village which is on the border with the company’s area around Block R 30.

2.4 Stakeholder Consultation and List of Stakeholders Contacted

2.4.1 Summary of stakeholder consultation process.

Public consultation have been carried out through the following methods:


ASSESSMENT REPORT


1. Meeting with the village officials and representatives that live around the company’s area on 16 July 2013. 2. Meeting with the internal stakeholders of the company namely the employees/workers, workers unions, and

women’s commission on 16 July 2013. 3. Meeting with relevant governmental institution in Belitung District such as: Agriculture and Forestry Agency,

Social, Manpower, and Transmigration Agency, National Land Agency, and Environment Bodies on 16 July 2013. 4. Correspondence with NGOs in the scope of Belitung District and Bangka Belitung Province such as: WALHI of

Bangka Belitung and Sawit Watch. A range of inputs from the result of the public consultation has been submitted to PT Forestalestari Dwikarya and has been clarified.

2.4.2 List of stakeholder contacted

Please find appendix 1

2.5 Determining Next Visiting

The next visit (Surveillance-1) will be determined nine month after RSPO certified.


ASSESSMENT REPORT


3.0. ASSESSMENT RESULT

3.1. Summary of Assessment Report of the RSPO Certification

MUTUAGUNG LESTARI has conducted an assessment of Tanjung Kembiri POM – PT Forestalestari Dwikarya, Golden Agri Resources Ltd. operation consisting of one (1) mill and two (2) oil palm estates. During the assessment, there were three (3) Nonconformities were assigned against Major Compliance Indicators; three (3) nonconformies were assigned against Minor Compliance Indicators and ten (10) 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 Auditors in form of documentation evidences (document record/photographic). Those corrective actions taken that consist of three (3) Major non-conformities and two (2) Minor non-conformities had been closed out shall be verified during next assessment. MUTUAGUNG LESTARI found that Tanjung Kembiri POM – PT Forestalestari Dwikarya, Golden Agri Resources Ltd. 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 issued.

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.

The management of PT Forestalestari Dwikarya already has a mechanism to receive and provide information to all parties. The incoming and outgoing information or responses are recorded in the Record Book of Information Request and Responses. Several examples of information requests and responses recorded are, among others:

Information request from Head of Labour Social Assurance (Jamsostek) Branch of Pangkal Pinang (Office of Provincial jamsostek) on 19 February 2013 on the Reconciliation Confirmation of Labour Social Assurance (Jamsostek) Contribution for the period of 1 January to 31 December 2012 which has been responded on 25 February 2013. There is an evidence in the form of Document of Reconcilitation Confirmation of Jamsostek Contribution of Tanjung Kembiri Mill for the period of January to December 2012.

Request for information from Agriculture and Forestry Agency has been responded by the management of PT Forestalestari Dwikarya through Letter No. 058/FLD/EM-TKME/VII/2013 that the company is preparing Location Map of Land Use Title and Map of Work Area which will be delivered when the document is complete. There is an evidence of receipt of the Letter No. 058/FLD/EM-TKME/VII/2013 to the Agriculture and Forestry Agency of Belitung District on 19 July 2013.

There is no enough evidence of responses to requests for information from the Agriculture and Forestry Agency of Belitung District through letter No. 525/123/DPK/2013 dated 7 February 2013 regarding requests for information of PT. Forestalestari Dwikarya’s Land Use Title (HGU). Major non conformance raised (CAR.2013.05) Root cause: 1. Communication and consultation letters register was not fully recorded by the management units of PT FLD concerned. 2. Some communication and consultation letters of relevant stakeholders (government and society) were coming through the representative office and were not recorded in PT FLD units concerned. 3. The letters addressed by the representative office directly to the head office in Jakarta, without any responses and were not recorded in PT FLD’s units, so the units did not know and had no records of the letter registration. Corrective Actions: 1. The Company updates books of requests for information and books of communication and consultation on the incoming mail from Plantation and Forestry Agency with letter numbers of 525/123/DPK/II/2013 and 522/264/DPK-VI/2013 addressed to the


ASSESSMENT REPORT


Chairman of PT Forestalestari Dwikarya and to the Director of PT Forestalestari Dwikarya. 2. Company on behalf of the Tanjung Kembiri Estate Unit has responded to the letter from the Agriculture and Forestry Agency with letter number of 058/FLD/EM-TKME/VII/2013 addressed to the Head of Agriculture and Forestry Agency of Belitung. Preventive Actions: The company makes Memorandum on Letter of Communication and Consultation from Stakeholders with letter number 006/RC-BB/MEMO/VII/2013 addressed to the Chief of Tanjung Pandan Representative Office, All Manager, KTU PT FLD, RC Staff, SPO Officer, and D & L TPNO. Auditors observations: Vdrification 23 July 2013 The company has shown evidence of delivery of responses to requests for information from the Agriculture and Forestry Agency of Belitung District on requests for information of PT. Forestalestari Dwikarya’s HGU through submission of a response letter dated 19 July 2013. Major non condormance closed. Records of request for information and responses along with the documents (letters) archived are stored in the Secretariate of Sustainable Palm Oil of PT Forestalestari Dwikarya – Tanjung Kembiri Estate (Head Office). Based on the Standard Operating Procedure (SPO) of Control and Document Retention Time (SOP/SPO/SMART/LH-02), documents of the records of request for information and responses as well as other documents related to Sustainable Palm Oil (SPO), such as: SOPs, Work Instructions and modules, are legal documents and records stored in the Secretariate of SPO in order to stay in the relevant and controlled area. Retention time for documents in Secretariate of SPO is 5 years and thereafter if the documents are no longer possible to be stored at the Secretariate of SPO, the documents controller can store them in the company’s archives storehouse then prepare minutes of storage in accordance with the regulation applied in the company. Obsolete yet still required documents for other legal purposes are stored in the Secretariate of SPO and marked “Obsolete Documents”. Documents that are obsolete and no longer needed will be destroyed by burying them. A minutes of Document Destruction is prepared for it. Based on the information obtained from staff of Document and Legal, documents related to legal and law are stored according to the validity of the documents.

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.

Based on the document of Information List for Stakeholders of PT Forestalestarii Dwikarya, the information that can be accessed by all parties are:

The number of employees and list of employees’ basic salary.

List of employees and information related to the Land and Building Tax calculation.

Payment of local taxes/levies

Number of employees.

Study of EIA, Environmental Management Plan/Environmental Monitoring Plan and Land Application permit.

Certificate of establishment and amendments, data of area and production as well as data of manuring application.

Evidence of land ownership such as Certificate of Land Use Title.

Social assessment report

Documentation of social activities

Quarterly report of Guiding Committee of Occupational Health and Safety, accident report.

Data of Jamsostek.


PRINCIPLE #2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

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

Company has demonstrated efforts in compliance with the requirements of law, among others:

Plantation Business Permit (525/00525/IUP-KEB/IV/2003) dated on 24 March 2003 from Head of Belitung District. The permit valids for oil palm cultivation covering 12,232.43 hectares and for oil pam processing with the capacity of 60 tons per hour.

Temporary storage permit for hazardous and toxic waste of PT Foreastalestari Dwikarya (188.45/241/kep/blhd/2012) dated on 24 July 2012 from Head of Belitung District. Period of validity is 2 years.

Waste water treatment license on the plantation (188.45/234/kep/blhd/2012) dated on 29 June 2012. The license valids


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for 2 years. The waste water resulted is used to water plantation area covering 439.9 hectares in Kembiri Village, Membalong Subdistrict of Belitung District. Company is obliged to report the monitoring result of the waste water quality every month, water quality of monitoring wells every 6 month and the quality of soil every year.

In cooperation with PT Primanru Jaya as the licensed company of hazardous and toxic waste collector. The permit of Hazardous and Toxic Waste collection of PT Primanru Jaya (No. 234 Year 2011) dated on 8 November 2011 was from the Ministry of Environment dan valids for 5 years. There is also an organizer permission to transport hazardous materials dated on 29 October 2012 from the Ministry of Transportation.

Company reports the balance of hazardous waste every 3 months to the Environment Bodies of Province/District/Ministry of Environment in accordance with the obligation stated in the license of hazardous waste storage, including the balance of hazardous waste in 2012.

Specifically concerning the hazardous waste management, in the scope of the plantation of PT FLD there is a transportation contractor named PT. SJA (under the same group with PT. FLD) which specifically serve the transportation of fruits in PT. FLD. Both companies agreed to cooperate with the approval from Environment Bodies in collecting and storing the hazardous waste, where PT. SJA deposits its hazardous waste in the hazardous waste temporary warehouse of PT. FLD so that the recording is included in the balance of hazardous waste of PT. FLD. As a legal foundation of the agreement, there is a Cooperative Agreement prepared through Letter No. 003/SP-B3/FLD/01/2012 between unit head of Tanjung Kembiri Transport (PT. SJA) and Factory Manager of PT. FLD concerning the delivery and storage of hazardous waste in PT. FLD. This agreement was accepted and approved by the Environment Bodies on 26 July 2012. There is an approval from relevant agency (Environment Bodies) for the delivery and storage of hazardous waste from PT. SJA in the Temporary Warehouse of PT. FLD. The written evidence of Environment Bodies can be demonstrated in the hazardous waste storage agreement letter of PT. SJA in PT. FLD.

Examination of documents and public consultation showed that the company had reported the development of the plantation to the relevant agencies at the district and provincial level in accordance with the receipt shown in July 2013.

Company has made adjustment to the changes in regulation, for example to the Changes of Reginal Minimum Wage in Bangka Belitung Province, in accordance with the Decree of Governor of Bangka Belitung 188.44/792/TK.T/2012 on the decision of sectoral minimum wage of District/City in Bangka Belitung Province. District Minimum Wage is Rp 1, 662, 400, - and Plantation Sectoral Minimum Wage /District (UMSP) is Rp 1,736,000. The adjustment made by the company is paying the wages of the employees according to the standard-based salary (excluding benefits and overtime). For Daily Worker Unit the wage is Rp 1, 743, 500 (above the UMSP). Company has a mechanism to evaluate the compliance implementation of applicable regulation requirements according to the SOP of Rules and Other Regulation. The SOP aims to identify, establish, and acquire regulations/rules/requirements of principles and criterias of sustainable palm oil production and to establish a good relationship with competent sources in the legislation-related field in order to gain access to these rules easier. The scope is all rules or regulations related to the principles and criterias of sustainable palm oil production. The compliance evaluation to the regulation is conducted periodically (every 6 months) by Assisstant/Document Controller assisted by relevant Department Staff. The latest evaluation to the compliance of rules was conducted in May 2013 with the result as follows:

Types of Rules Quantity Complied Not

Complied NA

Licensing 11 9 0 2

Manpower 29 28 0 1

Occupational Health and Safety 43 40 0 3

Environment 48 46 2 7

The components that are not complied have been followed up according to the ection plan, for example, on environmental aspect, as a follow-up of the compliance, a vibration test has been conducted an the results are available in accordance with the Certificate No. 660/128/SHU-LAB/VI/2013 dated on 19 June 2013 by Technical Unit of Environmental Laboratory of Environment Bodies of South Sumatera Province (Register: 0031/LP3/LABLING-1/LRK/KLH).


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

Examination of documents showed that PT. FLD already has legal documents of land tenure rights namely: 1. License of Principle No. 593/1669/I dated on 16 March 1991 from tne Governor of South Sumatera, with Land Reserve


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covering ± 20, 000 hectares in Membalong Subdistrict of Belitung District. 2. License of Principle No. 503/07360/I dated on 11 September 1991 from Head of Belitung District. There is a Map

Attachment recommendation on 21 August 1991 (submission to call back the government) with the Subject: Request for Land Reserve for the necessity of oil palm in Belitung District.

3. Letter of Land reserve covering ± 20,000 hectares in Membalong Subdistrict of Belitung District. 4. Decree of Governor of South Sumatera No. 224/SK/I/1992 and Map Attachment (scale of 1 : 200,000) on 15 April 1992,

regarding Land Reserve/Location Permit and Land Acquisition covering ± 18, 500 hectares located in Membalong Subdistrict of Belitung District for the Necessity of Palm Oil Plantation on behalf of PT. Forestalestari Dwikarya.

5. Decree of Governor of South Sumatera No. 318/SK/I/1994 dated on 3 May 1994 Letter extension of governor of South Sumatera on 15 April 1992 No. 224/SK/I/1992 regarding Land Reserve/Location Permit and Land Acquisition covering ± 18, 500 hectares located in Membalong Subdistrict of Belitung District for the Necessity of Palm Oil Plantation on behalf of PT. Forestalestari Dwikarya.

6. Decree of Head of Land Agency of Belitung District No. 08/SK-1L/BEL/1996 and Map Attachment with a scale of 1 : 100,000 on 9 July 1996, regarding the granting of location permit for the development of Palm Oil Plantation on behalf of PT. Forestalestari Dwikarya covering ± 10, 700 hectares which are located in Membalong Subdistrict of Belitung District.

7. Decree of Head of Land Agency of Belitung District No. 12/SK-1L/BEL/1996 and Map Attachment with a scale of 1 : 100,000 on 12 September 1996, regarding the granting of location permit for the development of Palm Oil Plantation on behalf of PT. Forestalestari Dwikarya covering ± 4, 500 hectares which are located in Membalong Subdistrict of Belitung District.

8. Decree of Head of Land Agency of Belitung District No. 04/SK-1L/BEL/1996 and Map Attachment with a scale of 1 : 100,000 on 12 September 1996, regarding the granting of location permit for the development of Palm Oil Plantation on behalf of PT. Forestalestari Dwikarya covering ± 1,100 hectares which are located in Membalong Subdistrict of Belitung District.

9. Decree of Head of Land Agency of Belitung District No. 08/SK-1L/BEL/1996 and Map Attachment with a scale of 1 : 100,000 on 15 November 1996, regarding the granting of location permit for the development of Palm Oil Plantation on behalf of PT. Forestalestari Dwikarya covering ± 1,200 hectares which are located in Membalong Subdistrict of Belitung District.

10. Certificate of Land Use Title No. 1 year 1994 was issued by National Land Agency of Belitung District on 29 March 1994 on behalf of PT. Angkasa Puri based on Certificate of Measurement No. 05/1992 dated on 9 January 1992 covering 1,082.20 hectares and valid for 25 years, expired on 13 February 2018. Furthermore, the certificate was then reversed to Certificate of Land Use Title No. 1 year 2005 issued by National Land Agency of Belitung District on 24 December 2005 becoming on behalf of PT. Forestalestari Dwikarya based on the Certificate of Measurement No. 01/Kembiri/2005 dated on 23 December 2005 covering 1,082.20 hectares which is expired on 31 Decmber 2078. This certificate is a transfer certificate after a change of ownership (take over) by PT. Forestalestari Dwikarya from PT. Angkasa Puri in 2005 (it was bought from PT. Angkasa Puri in 1997).

11. Certificate of Land Use Title No. 13 year 2001 was issued by National Land Agency of Belitung District on 6 December 2001 on behalf of PT. Forestalestari Dwikarya based on Certificate of Measurement No. 03/Belitung/2001 dated on 3 December 2001 covering (a) 923.50 hectares and (b) 3,744.93 hectares and will be expired on 5 December 2036. The certificate is based on Decree of Head of National Land Agency No. 4/HGU/BPN/2001.

12. Certificate of Land Use Title No. 14 year 2005 was issued by National Land Agency of Belitung District on 6 September 2005 on behalf of PT. Forestalestari Dwikarya based on Certificate of Measurement No. 01/Belitung/2005 dated on 5 September 2005 covering 5,586.952 hectares and will be expired on 20 July 2040. The certificate is based on Decree of Head of National Land Agency No. 114/HGU/BPN/2005.

At the time of the audit, there were no records of immediate clain from public to the land use title area of PT. FLD that has been compensated to be oil palm plantation. However, data of plant growth of PT.FLD showed that there iis a number of areas within the land use title of PT. FLD that cannot be cultivated since: 1) morphological condition in the form of low-lying land is flooded most of the year (used as HCV), and 2) the land is recognized as the land belongs to people who are not willing to be compensated.

PT. FLD Boundary Poles


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To the lands with overlapping recognition of such rights, company (PT. FLD) has not shown records of any official actions (does not do any efforts unless there will be a land acquisition/compensation agreed upon both parties in the future), and there has not been a dissemination yet to the public/village representatives around the plantation. There is no evidence of conflict resolution in the form of company’s official action or or evidence of dissemination led to the company’s action to the public that leaves a latent conflict in the areas with overlapping rights, eventhough “in practice” there is no indication for an open conflict. Location within the operational area of PT. FLD which is occupied by the communityaccordint to the explanation above will be an observation material for the auditor team, eventhough there is still no indication to an open conflict. The conflict resolution accepted by all parties should be contained and available in a mechanism. .

Document observation also showed that in the area of the land use title of PT. FLD, compensation has been done primarily for public lands that became estate. Totally there are 58 units of public land affected by the the plantation project and have been compensated with these following details: 1. Compensation in 1994 in Membalong Subdistrict covering 1.53 hectare, was paid to 4 land owners. Total amount of the

compensation was Rp 450,000. 2. Compensation in 1994 in Membalong Subdistrict of Belitung District covering 22.39 hectares was paid to 54 land

owners. Total amount of the compensation was Rp 13,738,500.

For lands that are currently used by the company, there is a complete compensation document fro each land unit containing recognition letter approved by Head of Membalong Subdistrict, certificate of waiver known by Head of Membalong Subdistrict, photograph of compensation submission, and receipt of the compensation submission. Mechanism of conflict resolution is available through SOP of Land Conflict Resolution No: SOP/SPO/SMART/LH-04. Scope of the procedure is all activities related to land conflict resolution that occur in the area of plantation and its processing units. The document states that the resolution is basically conducted by holding a dialog and providing evidence of legality. If it is not achieved then proceed with facilitation from the local government. If there is still no agreement achieved, then it will be continued with the court process to obtain legal certainty. However, it has not been proven that the mechanism or procedure of conflict resolution owned by PT. FLD has been accepted by all parties, as in the operational location of FLD in Tanjung Rusa Estate which is still occupied by the public and yet has become a plantation. This is a non-conformance in Minor category. (CAR No. 2013.06).

Minor 2.2.2 Status: Minor Non-conformance see CAR No. 2013.06

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.

The land managed by PT. Forestalestari Dwikarya has gone through a series of acquisition/compensation process. Records of compensation process are available in the form of Report or recapitulation document of land compensation kept by Document and Legal Section (D&L) along with the attachments, for example:

Recognition of Rights Letter No 2/K/IV/1995 dated on 11 November 1994 which was signed by the land owner, Head of Kembiri Village, and Head of Membalong Subdistrict.

Waiver Certificate No. 05/IV/1995 dated on 11 November 1994 which was signed by the land owner and Receiving Party of Rights (company) witnessed by the representatives from the company and acknowledged by Head of Kembiri Village and Head of Membalong Subdistrict.

Payment receipt from PT. Forestalestari Dwikarya to the land owner, Sikin, on 11 November 1994, along with the photograph of the land owner during the compensation process.

There is no area in the plantation of PT. Forestalestari Dwikarya that is under customary rights tenure. Based on the document review and information obtained from the management. There is a Document of High Conservation Value Identification Report of PT. Forestalestari Dwikarya 2012 available, which outlines the determination process of HCV area. Report of HCV identification outlines that there are only graveyard area and water source. Each area covers 3.93 hectares in Tanjung Rusa Estate and 2.04 hectares in Tanjung Kembiri Estate. Those areas are not under the control of customary rights. There is a Minutes of Public Consultation on HCV on 22 February 2013 and the attendance list of Public Consultation Participants (40 participants) consisting of heads of village, heads of hamlets, heads of subdistricts, community leaders, representatives of NGOs, public society and representatives of the company.


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


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

Work plans are prepared for estate operational for 1 year. These plans include document of production budget, document of mature upkeep (mature plants maintenance), document of running account (vehicles and heavy equipments), and document of general account (general cost). Work plans for the mills are available in the document of over head, processing, and workshops. Company has a long-term plan (2014-2016) by considering FFB production, revenue cost, estates cost, mill estates, operating expenses, and profit and loss for activities in the mills and estates. Base OER value (assumption) used for long term plan is 29 %, while base KER value (assumption)used for long term plan is 5%.

Work plan of 2013, FFB Production (242,893 tons), CPO/PK Production (414,800/69,072 tons), estates cost, mills cost, operational cost and profit. .

Work plan of 2014, FFB Production (242,178 tons), CPO/PK Production (55,701/12,109 tons), estates cost, mills cost, operational cost and profit.




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

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

Company has a technical SOP of plantation management that listed in the document of Management Committee of Agronomy and Research (MCAR) dated on 1 September 2012 which outlines the stages of a land clearing including: new area planting plan, replanting plan, nurseries, land clearing, planting, insertion, and replanting. Here are the stages of plant upkeep, ranging from pest control, upkeep, manuring, upkeep of immature plant, preparation for the harvest, upkeep of mature plant until harvest. Inspection of the estate operational continues, namely:

Agronomy Audit and Advisory Division, the inspection is conducted twice in a year with the scope of inspection includes production and harvest, administration of harvest and production quality, estate security and FFB transportation, mechanical preparation of the harvest, plant upkeep, pest and disease control, rainfall data, road and hardening, manuring, manpower and OHS, preventive maintenance, workshops and warehouses along with the polyclinic infrastructures, housing and environment, and RSPO. The latest AAA activity was conducted on 29 May to 5 June 2013.

Operational Internal Audit is carried out 2 times a year with the scope includes bank and cash administration and memorials, debt and credit administration and bank account, non-plant fixed assets, upkeep of plants and plantation area, plant production, wages and personnels. The lates OIA inspection was conducted in Tanjung Kembiri Estate on 15 to 23 April 2013 and in Tanjung Rusa Estate on 29 April to 6 May 2013.

RSPO internal audit is conducted once a year, where the assessment aspects include the company’s fulfillment to the RSPO principles and criterias. The latest RSPO internal audit for the year of 2013 was conducted on 14 to 17 May 2013.

Company has an SOP for plantation product s processing listed in the document of Management Committee for Mill Development (MCMD) 4th Revision. The operational activities regulated such as: FFB receipt, sterilization, threshing, press, clarification, substation for clarification, oil recovery tanks, recycling oil storage tanks, nut and kernel, boiler and engine room, water treatment, final effluent and storage tank washing along with the SOP for palm oil mill laboratory. There is an audit mechanism in the mill (mill audit advisory) twice a year. Aspects audited include production, planning and processing, power and consumable use, control process (loss of oil and kernels), quality control, maintenance (maintenance, safety equipments, garding, and laboratory). In 2013, the mill audit was conducted on 14 to 17 January 2013 and 24 to 28 June 2013. The entire operational of mill and estate is formulated in SAP (System Application of Product and Processing) which the


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report is input every day from the report of supervisor. The SAP shows all activity items conducted every day in the division, such as the use of HK, production, the use of ingredients, manpower position. In addition, the records of supervisor daily activities, known by the assistant. Based on the interview with the Harvest Supervisor and harvest workers, they understand the techniques of good harvesting, the calculation of wages and working premiums have been systemized. Harvesters should avoid harvesting raw fruit in order to maintain quality. Company has provided penalties for workers if the harvest does not conform to the quality standards that have been set. Harvest workers are equipped with personal protection equipment (goggles), and working tools (wheel loaders and sickels).


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

Observation of soil nutrient status is conducted to determine the availability of soil nutrient used as a growing medium of oil palm plantation. Nutrient availability status is a part of the preparation of manuring recoomendation that are appropriate, effective and sustainable in the concept of the balance of nutrient in the soil. Sample soil measuring parameters: texture, acidity (pH), content of C, N, P, K, Mg, Ca, BS, CEC, AI, and H. Soil analysis is conducted when the plants are 3 years old, 8 years old, 13 years old, 23 years old, and before replanting. It is based on the distribution of the age of oil palm namely immature plants and mature plants. It represents the life span of the plants such as young age plants, or older teen plants. There are records of soil analysis result in each estate, among others: 1. Soil sampling in Tanjung Kembiri Estate was conducted in 2011. The result of the analysis was published in 2012.

Sampling was conducted in Tanjung Kembiri Estate Block L53 on the circle to the depth of 15 cm to 40 cm. The result showed that the soil dominant texture is 77.23% sand, 12.42% of dust and 10.35% of clay, content of corg 1.32%, N: 0.06% and ration of C/N 21 and cation exchange capacity is 5.95 me/100g, pH H20 is 4.31 and pH KCL is 3.55.

2. Soil sampling in Tanjung Rusa Estate was conducted in 2011. The result of the analysis was published in 2012. The sampling was conducted in Tanjung Rusa Estate Block J27 on the circle to the depth of 0 cm to 15 cm. The result showed that the soil dominant texture is 78.7% sand, 12.8% of dust and 8.51% of clay. Content of Corg is 3.07%, N: 0.08% and ration of C/N 37 and the cation eschange capacity is 11.3 me/100g.

Leaf analysis is conducted by SMARTRI. The result of leaf analysis is used as a reference for fertilizer application plan with certain dose so that the optimal result from oil palm fruit can be expected. The principle of manuring is giving treatment to produce the nutrient required by the palm plants with optimal result. There are records of leaf analysis conducted in Tanjugn Kembiri and Tanjung Rusa Estate in 2011, 2012, and 2013. The complete result can be shown as follows: 1. Tanjung Kembiri Estate. The result of leaf analysis in Block B34 showed the content of: KA 1.21%; N 2.69%; P 0.166%; K

1.13%; Mg 0.27%; Ca 0.62%; B 16 ppm, Cu 6 ppm, and F3 170 ppm. 2. Tanjung Rusa Estate. The result of leaf analysis in Block H07 showed the content of: KA 1.31%; N 2.52%; P 0.161%; K

0.96%; Mg 0.27%; Ca 0.6%; B 15 ppm, Cu 7 ppm, and Fe 118 ppm. Measures to maintain and to increase soil fertility, among others, the manuring is conducted according to the dose and recommendation from SMARTRI, fruit empty bunch application and land application from the effluent of Palm Oil Mill. The entire activities above are monitored and recorded, namely: 1. Tanjung Rusa Estate

The implementation in Block P12 (mineral S3), urea (2.05 tons), DAP (3.4 tons), MOP (4.8 tons), Kies gran (3.4 tons), Borate (136.95 kg). All have been implemented.

The implementation in Block K07 until the month of April 2013 covered 10.46 hectares with tonnage of 418.24 tons (40 tons/hectare) from the plan in 2013 covering 14.77 hectares with a tonnage of 590.80 tons/hectare.

2. Tanjung Kembiri Estate

Implementation of fertilizers in Block B34 (mineral), urea (1,300 kg), DAP (1,300 kg), MOP (2,000 kg), Kies gran (550 kg), borate (28,150 kg). All have been implemented.

Implementation of empty bunches in Block J46 until the month of May 2013 covered 12.38 hectare with a tonnage of 495.20 tons (40 tons/hectare) from the plan in 2013 covering 29.76 hectares with a tonnage of 1190.40


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tons/hectare.

Effluent application of June 2013 (92.55 hectares), May (117.4 hectares), April (63.55 hectares). The result of the interview with an employee (Manuring Supervisor) showed that the person concerned understands the work stages and manuring responsibility.Their wages are in compliance with the Regional Minimum Wage issued by local government. The nominal of the wages is above the Regional Minimum Wage standard. There is also addition from their overtime and premiums, and rice benefits for the family (wife and 2 children, in the form of IDR).


4.3 Practices minimize and control erosion and degradation of soils.

A semi-detailed Soil map in Tanjung Kembiri was issued by Plantation Monitoring and Planning Division (PMNP) with the scale of 1: 60,000 in 2012. The map showed that the area of Tanjung Kembiri Estate is dominated by flat undulating land with the slope of 0 to 16 5, the sloping area is 21 to 40% covering 120.97 hectares. Texture of the soil is dominated by sandy loam soil. Land class is S2 (marginally suitable): 4440.9 hectares, S3 (marginally suibale): 78.61 hectares, and N (not applicable): 1322.14 hectares. A semi-detailed Soil map in Tanjung Rusa Estate was issued by Plantation Monitoring and Planning Division (PMNP) with the scale of 1: 50,000 in 2009. The topography of the area is flat to undulating with the slope of 0 to 16%, while the texture of soil is dominated by sandy loam soil. Procedures of the company to classify the slope and terrace requirement (dok sma/smart/mcar/i/ta-ppa):.

Slope Remark

<9% <5 Plants are planted in standard range, no need for terrace and individual terrace.

9-14 % 5 – 8 The width of conservation terrace is 2 m minimum with the interval of 35 to 50 m.

15-21 % 9 -12 Width of terrace is 4.5 to 4 m.

22 – 40% 13 – 22 Width of terrace is 3 m minimum, depends on the soil condition and the depth of the land.

>40 % > 22 Not recommended for planting.

Measures taken by the company to minimize erosion include:

Identification of soil erosion rate to see the magnitude of thick soil reduction in certain periods. There are 3 erosion poles available in Block F42 and 1 pole in F41 in Divison III of Tanjung Kembiri Estate on the slopes of >15%.

Arranging the fronds: the fronds are stacked neatly in L-shaped, spread around the fronds path and between the trees, where the fronds are places among the rows of trees. It aims to retain moisture.

Making individual terraces and silt-pits. Company has a road maintenance program to ensure the FFB produced by the estate can be smoothly sent to Tanjung Kembiri Mill. The road maintenance and hardening are conducted manually. The auditors ensure the maintenance of the road/bridge in Block RS 32 and L11/L12 of Tanjung Rusa Estate. Currently, the bridge work is ongoing. The activity is monitored and recorded in the road hardening monitoring worksheet. For example, in the period of May 2013, Tanjung Rusa Estate conducted road maintenance in Division 1, 5, 6, and 7.

Road improvement has been implemented in Division 1, Block K 11-12, N 11-12. Road improvement has been implemented in Division 6 Main Road JK 26-30, J25, K25, K26-31, J26-29, and D8. Road improvement has been implemented in Division 7 Main Road Block QR 33-37, N33-35, S 36-39, and MR Block NP 32-37.

Road improvement has been implemented in Division 5 of the housing.


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

Examination of EIA and HCV documents showed that in the area of PT. FLD estate there is a wetland in the form of low riparian and is flooded most of the year, there is also surface water (river). For the purpose of protecting the riparian, PT.


ASSESSMENT REPORT


FLD has taken several measures to maintain the low lying and riparian by: a) determining the riparians as HCV areas as described in HCV identification documents; b) making and installing warning boards not to hunt and destroy riparians; c) disseminating the existence of HCV areas to workers/farmers/community; d) rehabilitating the riparians through planting, monitoring/maintaining; e) managing the boundary of spray area by installing signboards of spray boundary, marking the oil palm trees, and manually maintaining the trees; f) monitoring the quality of river water in the scope of plantation especially the water area that mainly affected by the process of palm oil mill.

In accordance with these measures, there are implementation records available in the form of: a) record of determination of riparian and low lying areas as protected HCv areas; b) documentation of the installation of warning boards not to hunt and destroy riparians; c) documentation of dissemination of riparians protection to workers/farmers/community; d) monitoring the rehabilitation of riparians that are open with erosion-retaining plants and monitoring upkeep of the plants; e) documentation of the spray area boundary management by installing signboards of spray boundary, marking the oil palm trees, and manually maintaining the trees. The spray boundary is areas that have been determined as riparians in HCV identification; f) documentation of monitoring the quality of river water in the scope of plantation especially the water area that mainly affected by the process of palm oil mill.

To avoid contamination, company has conducted management of effluent of the mill well with the method of Land Application. According to applicable regulation, company has monitored the quality of effluent through land application. The monitoring is conducted in the outlet points of the effluent every month by Laboratory of Environment of South Sumatra provincial government. The latest measurement for the period of April-June 2013 showed that the required parameters (BOD) have met the safety standard for environment in accordance with Decree of Ministry of Environment No. 28 and 29 Year 2003 on management of palm oil mill effluent. PT. FLD has also been monitoring the use of water for oil palm processing in the mill peridocally. The result of the monitoring during the period of the first half of the year showed that in certain months the ration of water use exceeded the predetermined budget. This escess is largely due to the decrease of processed fruits, while the use of water for processing and domestic needs in the mill remains as usual. To conserve water, company has taken the steps to campaign the use of water-saving in the mill through briefing or installing water-saving stickers on the locations of water use.


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

The company has conducted several precautinanry measures through the census of leaf-eating caterpillars, Ganoderma, rats and owls. The pest control was done in a combination of chemical and biological measures. Tanjung Kembiri Estate

The recapitulation of the leaf-eating caterpillars’ detection is describing the sample locations, area of land, the number of infected trees, and the number of sample trees. The census result done at Division 8 (May and June) revealed that there was no caterpillars attack found. Anijar and Pramudya were the ones conducting the census.

The recap document of the census of Ganoderma boninense attack, which is done on an annual basis, revealed that there are 84 severely attacked plants/trees, 29 moderately attacked plants/trees, and 94 midly attacked plants/trees. These numbers are equal to an average of 0.01 tree per hectare. The monitoring result of rats/mice/rodents attacks occurred until June 2013 showed that the level of the attacks was still below economic limit (5%).

The monitoring of owls’ barn done on a monthly basis revealed that there are 222 adult birds currently inhabiting 206 available barn owl box (June 2013). The upkeep realization and the data of trees planting (Turnera subulata and Antigonon leptosus) are recorded in the upkeep and Rehabilitation of Biological Control Agent Host Plants Report. An area of 6,120.83 Ha has been realized as of June 2013.

Tanjung Rusa Estate

The result leaf-eating caterpillars’ detection revealed the sample location, area of land and observation time. For example, the observation done at Division I Block M14 (30.73 Ha) resulted in the finding that there was no caterpillar attack in that area (8 February 2013).

Monitoring result on rats/mice/rodents attack that was done during January to June 2013 showed that the attack occurred at all divisions was still below economic limit (5%). This means chemical control is not required. The result of nest box monitoring on June 2013 revealed that in each of the total 171 barn owl box there were adult birds and their


ASSESSMENT REPORT


breeds, which showed that those are active birdhouses. The census of Ganoderma boninense attack is done on an annual basis. The 2013 census showed that there were 269 severely attacked trees, 71 moderately attacked trees, and 116 mildly attacked trees, which translated into 0.01 tree per ha. The census was conducted by pest census workers, such as the one conducted on 5 June 2013 in Block S14 Division 2.

The document of upkeep realization and planting data (Turnera subulata) is included in the upkeep and Rehabilitation of Biological Control Agent Host Plants Report. An area of 15,782.52 Ha has been realized as of June 2013.

The company has provided the employees with the integrated pest control comprehension. Such training was conducted in collaboration with the research team on 17 September 2012 and was attended by 26 employees. An auditor was assigned to examine the implementation at Block B35. The rodents/rats were controlled using their natural enemies (owls), which were put in the nest box provided as their breeding place. Active nest boxes are shown by the presence of owls’ breeds and the food leftovers under said next boxes.


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

The company uses only agricultural chemical substances that are registered at and approved by authorized institutions. All chemical substances have been registered at the relevant agencies. Those substances are glyphosate, paraquat, fluroxypyr, methyl metsulfuron dan triklopyr.

1. Glyphosate isopropylamine Isopropilamina Glifosat 480g/l (Roll Up 480 SL), Reg. No. RI 2133/4-2009/T. 2. Paraquat Dichloride Paraquat Dikloride 276 g/l (Rolixone 276 SL), Reg. No. RI 0101301120062467. 3. Fluroxypyr Fluroksifir 295 g/l (Starane 290EC), Reg. No. RI 854/7-2009/T. 4. Metsulfuron Methyl Methil Metsulfuron 20% (Erkafuron 20 WG), Reg. No. RI 01030120062405. 5. Triklopyr Triklopir 670 g/ltr (Garlon 670 EC), Reg. No. R.I 695/9-2008/T.

The company keeps the records of chemical usage summary that describes the rotation, the areas of application, the dose given per hectare, the materials used, and the active ingredients used.

Active ingredients Bahan aktif

Rotation

Rotasi Area of aplication

(ha) Amount used

(liter or kg) Jumlah pakai (liter atau kg)

Dosage Dosis

Unit of pesticide/ton

FFB Unit pestisida /ton

TBS

Glyphosate Glifosat

2 5,839.11 491 0.084 0.000000

Paraquat 1 5,839.11 1,277 0.218 0.0834

Metsulfuron Methyl Metil metsulfuron

2 5,839.11 53 kg

0.009

0.0005

Triklopyr Triklopri 2 5,839.11 91 0.015 0.00057

Fluroxypyr Floroksipir

2 5,839.11 258 0.044 0.00152

Tanjung Rusa Estate, June 2013

Active ingredients Bahan aktif

Rotation Area of application

(ha)

Amount used (liter or Kg)

Jumlah pakai (liter atau kg)

Dosage Dosis

Glyphosate Glifosat

5 936 234 0.25

Paraquat 1 191 47.75 0.25


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Metsulfuron Methyl Metil metsulfuron

3 203.92 2.55

0.0125

Triklopyr Triklopir 1 19 19 1

Fluroxypyr Floroksipir

2 921.84 57.62 0.0625

The auditor has examined the implementation done at Tanjung Kembiri Estate, Division 1 and Division 3, Block B31. The interview was also done with Spray Supervisor (Susilowati) and spray workers. It was revealed that they have all understood the protection efforts taken on the areas located at riparian by not apllying any chemical substances (pesticides) on five trees at the left and the right sides of the river. Spraying team is made up of 11 women and 1 man. All workers are equipped with personal protection gear (apron, goggles, and gloves). There are no pregnant/breastfeeding female workers assigned to be in the spraying team. Once any of the workers are found to be pregnant and breastfeeding, she will immediately be transferred to other sections. There is a memorandum for VPA PSM 2 (No. 002/MEMO-VPA PSM2/04/2011) regarding reducing Paraquat Usage, in which it it stated that in performing the weed control, one must take notice of the “Integrated Weed Control Concept”. The company has set up an action plan to reduce the use of paraquat by confirming the use of glyphosate as replacement for all spraying activities in The Collection Point/FFB (TPH). Reaffirmation of RC policy regarding paraquat use has also been done to all managers who had promoted the use of paraquat for circle spray and harvesting path spray, instructing them not to apply it again on the next rotation. The use of 250 cc/ha paraquat was performed for 1 rotation only. Since August 2013, all TPH spraying must use glyphosate. It is expected that the use of paraquat be less and less in the coming years. As for the 2013 budget, for paraquat use in particular, there has been no changes made. The realization of paraquat application for the period of January – June 2013 has showed a decreasing trend compared to that of the previous period. It was 2,187.07 liter of paraquat applied during 2013, which is lower that the 2012’s numbers of 2,666.96 liters. The regular health checkup for spray workers was conducted in several phases, i.e. phase I (June 2013) was for 15 workers, phase II (Spetember 2013) was for 55 workers, and phase III (November 2013) which will be conducted for 49 workers. Said health checkup comprises of physical examination, spirometry test, and cholinesterase test. The phase I checkup conducted by Tanjung Pandan Primary Clinical Laboratory on 7 June 2013 was performed on 15 workers, whom were claimed to be fit/healthy and whose cholinesterase test results were still below limit. Based on the field observation, there are spray workers that have not performed special health examination. (Raised Minor non conformance CAR No. 2013.07 Minor 4.6.2). Root cause: Special health examination has been done only for spray workers who suffered from health problems based on physical examination. Corrective Action: The company identifies spraying workers who have not obtain special medical examination, budgeting examination cost, and preparing schedule of tests performed in stages. Preventive actions The company ensures all spray workers have special health examination, evaluating the results of the examination and workers with health problems perform further examination. Auditors observations: Verification 23 July 2013. The company showed commitment of health examination to all spray workers through: identifying the number of employees who have not obtained health examination, budget the examination implementations cost, and preparing the schedule of exanimation in stage II in September and stage III in November 2013. Minor non conformance is closed The company keeps a Memorandum VPA PSM 2 (No. 001/MEMO-VPA PSM2/04/2011) dated 08 April 2011, in which it is stated that the company shall not pregnant women and breastfeeding female workers to be employed as spray workers. As an implementation of saih Memorandum, the company regularly conducts a pregnancy test for female spray workers,


ASSESSMENT REPORT


such as the one performed at TRSE on January 2013, which confirmed that there were no pregnant female workers discovered at the time of the test. In addition to that, a field observation done for spraying activities at TKME (Block B031) and at TRSE (S034) has also revealed that there were neither pregnant women nor breastfeeding female workers found. Moreover, all workers were also well-advised that it is prohibited for pregnant women or breastfeeding female workers to perform any works involving the use of chemical substances.


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

PT FLD has both effectively documented and implemented the Occupational Health and Safety Program done at each work unit of POM and Estate. The OHS Policy approved by Production Controller on 8 May 2012 serves as the evidence of the commitment claimed by the company for the OHS implementation. Based on the observation of mill and estate operations there are workers who did not use appropriate PPE according to the standard, such as: wheel loader worker, engine room worker, and tree pruning worker working alone in the off hours. Major Non condormance raised (CAR.2013.08) The root of the problem: The company has provide PPE for workers, however the workers' awareness of the importance of the use of PPE is still lacking. Corrective Action: The Company identifies and evaluates compliance with the use of PPE for all workers and makes the program as an effort to improve compliance with PPE use. Preventive Action The company ensures the program for increased use of PPE is on schedule. Auditors observations: Verification 23 July 2013 The Company showed improvement measures by identifying the possible causes of the problem (PPE usage compliance evaluation for labor) and preparing action plan for increased compliance with the use of PPE.Major Non conformance (CAR.2013.08 is closed) The company has established the Guiding Committee Of Occupational Safety & Health (P2K3), who is responsible for OHS program implementation, whose organizational structure comprises of Advisor, Chairman, Deputy Chairman, Secretary (OHS Specialist certified), Deputy Secretary for Supervision Section, Research Section, Evaluation Section, Counseling Section, and Health Section. The P2K3 has been approved by Social Welfare, Manpower, and Transmigration Agency of Belitung Dictrict with the Decree No. 004/NK3-P2K3/DSKTK/VIII/2012, which was approved on 1 August 2012. There is also a regular meeting initiated by the company, such as the one held on May 2013 which was discussing the changes in P2K3 organizational structure and the emergency response team. Apart from that, P2K3 report has also been regularly submitted to the Agency of Belitung District, such as the report for the period of April – June 2013, which was submitted on 4 July 2013 under the document No. 001/SMK3/FD/VII/2013. Workplace accident insurance to cover all workers at PT FLD is provided by Jamsostek (Labour Social Assurance). In general, all workers are already registered as the members of Jamsostek. There is evidence of payment done by Jamsostek on June 2013, which was paid on 16 June 2013.

The company has identified that there are two types of works bearing high risk potential, i.e. those works at noise area (mill and genset operator), and those in direct contact with chemical substances (laboratory analyst, spray worker, spray supervisor, and warehouse clerks). In relation to it, a regular health chekup is provided for the workers assigned to those high-risk types of works, which includes the audiometric examination, spirometric check, and cholinesterase check. The examination was performed in several phases, i.e.

- Phase I (June 2013) were performed on 60 workers (mill workers, spray workers, genset operators, warehouse clerks, laboratory analyst, and workshop analyst),

Risk Identifiaction Implementation


ASSESSMENT REPORT


- Phase II (September 2013) for 55 workers (spray workers, spray supervisor, and warehouse clerks), and - Phase III (November 2013), which will be performed on 49 workers (spray workers, spray supervisor, and warehouse

clerks). The company has so far conducted phase I on 7 June 2013 that found out there were several workers with certain health problems, for which they have also underwent further examination. Moreover, doctor’s recommendantion letter is available for the workers who need to do work transfer. There is a record of risk analysis in a form of Hazards Identification, Risk Assessment & Risk Control (HIRARC) on all activities at the POM and Estate. The document is prepared with the following flow of procedure: all activities and work process at the POM and at the Estate are assessed to identify hazard potential based on the source/occurrence and its impact. The nbezt step is assessing the risk level and determining the risk control, such as elimination, substitution, engineering, administrative, or PPE application. The training for OHS program has been conducted and the schedule for said program is available at each work unit of POM and Estate. The records of training are available in the form of attendace list and minutes of event. For example, the training of OHS given by the company’s doctor at TRSE on February 2013 was attended by 38 participants from supervising section. The company has the procedure for emergency preparedness and response in the form of Emergency Response SOP (SOP/SMK3/SMART/LH-09), which was passed by the Head Of Environmental and Sustainability Division on 1 July 2010. The states for which emergency response is expected are identified as the following; fire, explosion, contamination, natural disaster, riots, demonstrations, and workplace accidents. In general, the SOP describes the definition of emergency state and the emergency response team, the reporting lines in the event of an emergency, the duties and responsibilities of the emergency response team, the remedial planning and action in the event of an emergency, and the recovery management. As an implementation of said procedure, the compant has established the emergency response structure for PT FLD, which was passed on 17 May 2013 under the Decree No. 004/SK-P2K3/FLD/V/2013, which lists down the following: Advisor, Chairman, Chief Executive, Secretary, General Support, Chief of Fire Squad, Fire Extinguisher Group, Fire Hydrant/Water Tank Group, Sand/Mud Group, Fire Blankets Group, Hooked Poles Group, Medical Team, Security Team, Removal Team, Liaison Team, and Evacuation Team. The OHS tools and First Aid Kit are also available at each work unit, such as the ones available at TKME, which consist of 28 tubes of dry powder fire extinguishers and 13 boxes of First Aid Kit. The field observation also confirmed that the company has provided TKMM with PPE sets for the workers, such as the sets provided for boiler operators, which consist of helmet, mask, gloves, earmuff and shoes. In addition, there are fire extinguishers and fire hydrants installed in various points at the processing stations as part of fire prevention facilities. The company has conducted First Aid training to workers, given by the company’s doctor at TKMM and TKME on September 2012, and at TRSE on February 2013. A field observation done during harvesting activities at TRSE Division V Block S034 has confirmed that harvesting supervisors have been equipped with First Aid Tools. The interview results also confirmed the same thing, also, that supervisors have received First Aid training and have all had a good handle on the First Aid techniques that need to be done at the time of rescue in case of accident. The reporting of workplace accident shall refer to the SOP/SMK3/SMART/LH-10, which was authorized on 1 July 2010 by the Head of Envd and Sustainability Division. The reporting shall be using the 1x 24-hour Workplace Accident Report Form (Document No. FP-01/SMK3/SOP-10) and Accident Investigation Report Form from the Assistant (Document No. FP-02/SMK3/SOP-10). A statistic analysis of workplace accident (FP 04/SMK3-SOP-10) done at PT FLD for the period of January – June 2013 showed the following data:

- one case of fatal accident occurred at TKMM, causing 6,000 lost workdays; - 29 cases of accident took place at TKMW, causing 17 lost workdays; and - 35 cases of mild accident took place at TRSE, causing 23 workdays to be lost.

The above data is well documented at PT FLD and is periodically evaluated by the secretary of P2K3. There is also a list of precautionary measures to prevent similar incident from taking place in the future.



ASSESSMENT REPORT


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

The Identification Matrix of Training Needs is available with the following types of training: - SPO Comprehension, - SMK3 (OHS Management System) Comprehension, - MSDS (Material Safety Data Sheet), - Emergency Response Preparedness, - How to Use Fire Extinguishers, - How to Perform First Aid, - How to Apply the SOP and IK (Working Instructions), - How to Use PPE, - Environmental Laws and Regulations, - OHS for Labor, Hazardous Waste Control, etc.

The training program has been set up to accommodate the competence of each job title. For example, the 2013 training program prepared for TKMM shall include the First Aid training for operational workers, OHS internal audit for managers and staff, and fire drill for all staff and employees. The record of the training for each employee has been well documented and is filed in the training record form (FP 07/SMK3-SOP-08). For example, a Senior Technical Assistant attended an OHS Training on 5 – 8 November 2012 and heavy equipment (MF 5355 tractor) maintenance training on September 2009. Another example is the tractor operator, who attended an OHS training for forklift and conveying machine on 22 – 25 October 2012. The Collective Labour Agreement No.TKME/SPKLL/April-2013/13- FFB Transport dated 11 April 2013 stated that the driver taking the truck for FFB transporting must hold a driver’s licence. The document evaluation and interview with contractor workers have confirmed that said workers are all familiar with the works done and they are well trained.


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.

The document assessment showed that PT. FLD keeps an environmental document in a form of Environmental Impact Assessment (EIA), which was prepared at the beginning of estate’s establishment. This EIA’s study scope covered an area of 15,000 ha and a palm oil mill with the capacity of 60 tons FFB/hour. To accommodate a number or changes and the actual areas of HGU (Land Use Title) acquired, revision of EIA document has been made and has been approved by the provincial government through a Decree of the Governor of Bangka and Belitung Islands No. 188.44/450.c/bapedalada/2007.

The study scope of said revised document covers an oil palm estate with an area of 11,337.582 ha and a palm oil mill with the capapcity of 60 tons/hour.

There is a record of the implementation of environmental management and monitoring report, which is submitted to relevant institutions on a regular basis. The most recent report for the first semester of 2013 was submitted on July 2013.

However, the RKL-RPL documents have not yet provided the entire aspects of environmental management and monitoring in PT FLD, which is required in the EIA documents, especially the ones related to the monitoring of aquatic biota. .(Major non conformance is raised CAR.2013.09)

Root cause : Preparation of Environmental Management Plan and Environmental Monitoring Plan implementation reports does not refer to the approved EIA . Corrective Action : The company has shown evidence of environmental monitoring activities in accordance with the EIA documents specifically related to aquatic biota monitoring through theimplementation of aquatic biota measures by the Environmental Laboratory of South Sumatra provincial government. Preventive Actions:


ASSESSMENT REPORT


The Company ensures implementation of environmental management and monitoring in accordance with the draft preparation of EIA document through Environmental Management Plan and Environmental Monitoring Plan containing all significant impacts which are mandated to be managed and monitored in EIA documnet. Verification 14 August 2013

The Company shows evidence of environmental monitoring in accordance with EIA documents through the measurement of aquatic biota in Sungai Kembiri, Sungai Cerucuk, and Sungai Kepang Membalong conducted by Environmental Laboratory of BLH of South Sumatra Province on July 30, 2013. Observations will be made to the consistency of the monitoring implementation and

reporting of environmental monitoring to relevant agencies in accordance with the EIA document requests. Major non conformance is closed

With respect to changes in the specifications of the estate and mill’s activities, the company has made e revision to the 2007 EIA document and said revision has been passed by the Governor og Bangka and Belitung Islands through a letter No. 188.44/450.c/bapedalada/2007. Those changes of specifications include the changes in the conservation area, land enclave, the utilization of effluent for land applilcation, the dynamics of society, and other changes in environmental setting.


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.

The company has conducted an identification effort of the species that are protected, uncommon, rare, or endangered, and of the habitat with high conservation value. The identification process was done in 2012 by the company’s internal team that has been listed as RSPO approved assessor, with peer review done by Resit Sozer (Independent Consultant).

The identification document revealed that there are several types of protected flora and fauna living in the estate, such as White-throated Kingfisher (Halcyon smyrnensis), Lesser Fish Eagle (Ichthyophaga humilis), black winged kite (elanus caeruleus), Silvered Leaf Monkey (Trachypithecus cristatus), and Asian Black Hornbill (Anthracoceros malayanus).

In the mean time, the area identified as HCV area covers as wide as 466.13 Ha (4.11% of the nucleus estate area which covers 11,337.58 Ha), with the following details:

As part of the protection efforts for endangered fauna and HCV area, the company has prepared and implemented the action plans for the management of the protected flora/fauna and High Conservation Value (HCV) area through the following measures. The implementation of SOP for wildlife sanctuary, by doing a dissemination of HCV to the community, on 2 November 2012 at Kembiri Village office and at several other villages, Dissemination of HCV existence to employees and staff at each estate, Planning of HCV area Management and Monitoring, Implementation of the plan by installing the HCV area identification board, warning boards, and posters of protected fauna, Appointment of special officers in charge of the management of HCV area.

In general, the measures taken as described above in indicator 5.2.3 are in compliance with the laws and regulations concerning protected flora and fauna and their habitat, especially Act No. 5 year 1990 regarding Conservation of Biological Natural Resources and Their Ecosystem, Presidential Decree No. 32 year 1990 regarding Conserved Area, Government Regulation No. 7 year 1999 regarding the Preservation of Flora and Fauna, Act No. 5 year 1994 regarding the Ratification of the United Nations Convention on Biological Diversity, and a number of other laws and regulations. For dissemination purposes, the company has prepared a handful of posters, warning boards describing protected species, publications, circulars, and dissemination to all employees and community as well as the handling information. In total, there are 93 piecses of warning signs and leaflets serve as dissemination media, which are spread across rhe area of the estate.

The dissemination on HCV area and wildlife protection has also been done to all employees and surrounding community,


ASSESSMENT REPORT


specifying on the types of protected animals and how to handle them (SOP). The activities included the dissemination of HCV existence to employees and staff at each estate and to the surrounding community, which was done on 2 November 2012 at Kembiri Village office and at other villages.

As for the management of HCV, the company has appointed 2 specially trained officers for each estate, i.e.

1) Syaful Hamdi (Agronomy Assistant), through the Decree No. 006/EM-TRSE/VII/2012, dated 02 June 2012 (Tanjung Rusa Estate), and

2) Damrah Thalib (Assistant Chief of Agronomy), through the Decree No. 006/EM-TKME/VII/2012, dated 02 July 2012 (Tanjung Kembiri Estate)

There is a evidence confirming that both officers have attended the training given by HCV Specialist (Dr. Kunkun Jaka Gurmaya) on 30 October – 1 November 2012.


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

The records kept by the company revealed that PT. FLD has a document of waste identification in a form of: 1) EIA Documents from the year of 2007 as well as the regular reports of RKL-RPL implementation, 2) Documents of Environmental Aspect Identification from the estate activities as well as the mill surrounding which hold the contamination and pollution potentials. Both documents identified the waste in the area of estate and mill, impact potentials, and their countermeasures.

The waste management plan is described in the EIA document and Environmental Aspect Identification document with the following details:

- Solid wasteresidential waste is to be transported to the landfill and buried.

- Solid waste of used pesticide containers are washed and stored in the warehouse to be handed over to collectors. The number of used pesticide containers is well recorded at both warehouses of Tanjung Rusa Estate and Tanjung Kembiri Estate.

- Hazardous Waste of oil, filter, rag cloth, and others are handled according to the rules, namely submitted to licensed hazardous waste collectors.

- Infectious clinical waste and hazardous waste such as plastic packaging, used bottles, medicines and used syringes are handed over to a third party, namely the Regional Hospital, to be destroyed.

- Non-hazardous solid waste, such as plastic, cans, and office stationery are dumped in the landfill.

- Mill’s solied waste, such as empty bunches and fibres are being re-used as fertilizer and boiler’s fuel.

- The effluent resulted from processing activity is used as land application and its quality is regularly monitored

For Hazardous Waste management, the company has the policy and managemen plan specified in the EIA document and in Environmental Aspect Idedntification document of estate and mill’s activity. According to the company’s environmental policy and the applied SOP, hazardous waste from the estate is centralized in hazardous waste warehouse at Tanjung Kembiri Mill, which is already licensed under the Decree of Belitung Regent No. 188.45-241 year 2012 (valid for 5 years).

From Hazardous Waste Temporary Warehouse, the waste is then transported by a licensed third party, PT Primanru. There is a special treatment fior agrochemical waste

(used pesticide containers) from the plantation, namely being safely leached (at special leaching point and to assure there will be now contamination and harmless to health) to reduse the hazardous level.

Agrochemical waste that has ben leached is then stored and delivered to a licensed third party.

The following list serves as the evidence showing that the company has done the monitoring and analysis of the waste on a regular basis:


ASSESSMENT REPORT


1. Hazardous Waste monitoring is done by recording it in the logbook at the POM and in monthly balance sheet of Hazardous Waste. Said documents are submitted to relevant institutions on a 3-monthly basis. The document of Hazardous Waste balance sheet of June 2013 listed down the following types of waste managed at the premise: Used oil (closing balance: 75 Kg), Used batteries (closing balance: 2 pieces), Used rag cloths (closing balance: 3.02 Kg), Used oil filters (closing balance: 36 Kg), and Used lamps (closing balance: 13 Kg). The company has also included the infectious hazardous waste into the list of waste in the balance sheet, as seen in the Hazardous Waste monitoring of July 2013. Said document has been submitted to relevant institutions.

2. The monitoring of solid waste utilization: solid waste resulted from the production process is regularly monitored by mill’s officers. The monthly recap is available and the waste management report is regularly submitted to Environmenl Bodies in the form of RKL-RPL implementation report of PT. FLD.

3. The monitoring of the volume and the quality of waste being discharged for land application is done by the mill’s officer on a regular basis. The daily record is then put into the monthly recap and effluent management report, which is regularly submitted to the Environment Bodies in the form of tri-monthly report and RKL-RPL implementation report of PT FLD.

The Company do not include infectious hazardous waste to hazardous waste balance sheet reported to the relevant agencies.

Minor non conformance rasied (CAR.2013.10). Root cause: Infectious hazardous waste reporting has not been identified as obligations that must be met by the company. Corrective Action: The Company has reported infectious hazardous waste in the form of hazardous waste balance sheet.There is evidence of a copy of the report and the report delivery receipts to BLHD Pelalawan. Preventive Actions: Ensure infectious hazardous waste is recorded in hazardous waste balance sheet reported to the relevant agencies. Verification 19 July 2013 The Company shows the evidence of the inclusion of infectious hazardous waste to hazardous waste balance sheet reported to the relevant agencies. Minor non conformance is closed


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

There is evidence showing that the company has been using renewable energy in the form of shells and fibers that are used for boiler’s fuel. The use of renewable energy can reduce the use of diesel to fuel the generators in palm oil processing. The data of said renewable energy usage is used by the company to create an efficiency analysis of the use of shells and fibers. On average, the shells and fibers that are used as fuel can save up to 270,641 liters of diesel fuel. There is also a evidence showing that the company has done the monitoring the use os diesel fuel for the operational activities of the mill and the estate.


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 did not do any land burning to prepare the land for replanting purposes. There has been no replanting activity done up to the time of the assessment. The result of field visit to Division 2 and 3 Tanjung Rusa Estate revealed that there was no burning and no land preparation using fire. The company has a mechanism for emergency response, where an emergency state is defined as fires, explosions, contaminations, natural disasters, riots, demonstrations, and workplace accidents (sop/smk3/smart/lh-09). Whereas the mechanism for land fire handling is specified in the SOP/NP/smart/xi/lh2002. The emergency response team has been set up and registered at local agency. There is one work unit for emergency response in each estate and mill, whose job is not limited to land fire. The emergency response team consists of various squads, i.e. evacuation squad, liaison squad, fire squad, removal squad, security squad, and medical squad.


ASSESSMENT REPORT


The followings are the emergency response facilities provided at tanjung Kembiri Estate; 28 pieces of Fire Extinguishers, individual equipment (fire-resistant outfit, helmet) and group equipment (water pump, hose, nozzle), and emergency response tools for office and estate. Whereas at Tanjung Rusa Estate, there are 13 pieces of Fire Extinguishers, individual equipment (fire-resistant outfit, helmet) and group equipment (water pump, hose, and nozzle). The company has mapped the distriburion of fire-prone areas both at the estate and at the mill. The fire-prone area at the mill stretches around the processing station, while at Tanjung Kembiri Estate, fire-prones areas are identified to be those around employee housing facilities (Block B36, Block J48, and Block L57), the mill at Block L47, around boundary, and at community enclave. Similar to this, the fire-prone area at tanjung Rusa Estate is identified to be that of community enclave.


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

The document assessment of ST2 audit revelaed that PT FLD has kept the document of pollution and emission source identification at Palm Oil Mill, in the following forms:

1) 2007 EIA document and the regular reports of RKl-RPL implementation,

2) The Document of Environmental Aspect Identificatin, taken from the activities at the mill that could potentially cause contamination and pollution

From the aforementioned two documents, these sources of pollution and emission are identified at the palm oil mill:

a) Noise contamination is caused by separator machines, steam purifier, and pumps. Said contamination is managed through machine maintenance and the use of personal protective equipment.

b) Air contamination is caused by the exhaust emission of generators. Air quality testing (emmssion) is done every 6 months,

c) Air contamination is caused by the emission coming from the boiler’s flue. Air quality testing (emmssion) is done every 6 months.

As the evidence of implementation, there is a record of the emission quality monitoring from the source of emission and pollution in the following forms:

1) The report of ambient air quality test, conducted at two points, i.e. at the front area of Tanjung Kembiri Mill office, and at the area of Tanjung Kembiri Mill Employee Housing Facility. The result showed that all parameters still comply with the quality standards.

2) The report of the test of air quality from the boiler emissions, conducted at two points, i.e. boiler flue 1 and 2 at Tanjung Kembiri Mill. The result showed that all parameters still comply with the quality standards.

3) The report of air emissions test done to 3 units of generators at Tanjung Kembiri Mill, which showed that all parameters still comply with the quality standards.

The results of those air quality testing are all included in the RKL-RPL reports and have been submitted to the Environment Bodies. To reduce pollution, a number of efforts and a plan to reduce pollution and emissions has been carried out, such as:

1) Paving the roads, and set the speed of the vehicles so as not to cause pollution of dust, as seen from the roads paving program and speed limit signpost warnings,

2) Ensuring that the boiler fuel is in dry condition, 3) Equipping the boiler with dust collector, 4) Setting up the proportion of air and fuel in the combustion chamber to

range from 12:1 up to 16:1, 5) Limiting the production of each heat from the boiler to be around 9%, 6) Planting broadleaf trees to help muffle the noise, 7) Distributing the PPE (masks and earplugs) to prevent the negative

impact of pollution on health, 8) Conducting machinery maintenance on a regular basis, to ensure complete combustion and to avoid pollution, 9) The use of non-fossil fuels in the mill, to reduce the pollution caused by fossil fuel combustion

Waste Water Treatment Pond


ASSESSMENT REPORT


The effluent resulted from the production activity has been well managed in the effluent pond (POME) before applied ti land. There are 8 effluent ponds, each with the capacity of 10,000 m3. The quality of the effluent resulted is measured and monitored so as not to exceed the quality standards. The effluent management done at the POM employs the anaerobic multi-feeding system, while the method for land application uses the flatbed system, which needs several ponds to be built with dimension of 2-meter wide and 0.5-meter deep. As for the length of the ponds, it is to be adjusted to the land topography. The measurement of effluent quality at the outlets is done every month by the Environmental Laboratory of Regional Government of South Sumatera.


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

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

There are Environmental Impact Assessment Reports documents of Plantations and Palm Oil Processing Mill of PT Forestalestari Dwikarya Year 2007 (Revised version). The document was prepared by CV Indolestari Makmur (Environment and Planning Consultant) - Palembang and has obtained ratification from the Governor of Bangka Belitung Number: 188.44/450.C/BAPEDALDA/2007, dated 18 September 2007. There are also Social Impact Identification Study Report of Plantations and Palm Oil Processing Mill of PT Dwikarya Forestalestari 2012. The document describes about the positive and negative impacts of oil palm plantation management by PT Forestalestari Dwikarya as well as Management Plan and Monitoring Plan for Social Impacts. Data collection in the implementation of the Social Impact Study was conducted through interviews with respondents (some villagers) and the results have been consulted by the parties (stakeholders). The effective area of oil palm area management of PT Forestalestari Dwikarya covering 11,337.58 ha which consists of 5,251.27 ha (Tanjung Rusa Estate) and 6,086.31 ha (Tanjung Kembiri Estate). The environmental impact of plantation and mill operations (Tanjung Kembiri Mill) has been studied in the whole area. In connection with operations activities in the estates and mills, there have been some progress; e.g. the establishment of conservation areas, land inclave (bringing the total land that has been Land Use Title (HGU) certified of 11,337.582 ha), the utilization of wastewater as the land application, community dynamics and other environmental changes, therefore the company revised existing environmental management document. The company can demonstrate environmental impact analysis documents for the construction of estates covering 11,337.582 ha with palm oil mills with capacity of 60 tons FFB/hour for PT Forestalestari Dwikarya. The document was drafted in 2007 and has been endorsed by the Governor of Bangka and Belitung Islands (188.44/450.c/bapedalda/2007).


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 Forestalestari Dwikarya has had procedures related to communication and consultation process, namely SOP of Communication and Consultation (SOP/NP/SMART/XIV/MCAR003). The purpose of the SOP is to ensure all communication and consultation with internal and external parties in the activities of plantation and palm oil processing can operate effectively. The scope is all communication and consultation activities with stakeholders both internal and external in activities of plantations and palm oil processing mills. There are records examples of Communications & Consultation with the Community, namely Consultation of HCV identification Results and Social Impact Assessment of PT Forestalestari Dwikarya to stakeholders/includes surrounding communities and village head, dated 22 February 2013. Records evidence in the form of the socialization material, the attendance list of participants, photographs, and minutes of meeting are available. The company has also had a list of stakeholders that has been categorized, among others: Village Government, Subdistrict


ASSESSMENT REPORT


Government, District Government/Institutions, Community Leaders/Rural Community, NGOs and Corporate Internal Organization. The records of the community’s aspirations are recorded in the community’s aspirations record book along with the responses. In the aspirations book, date of letter, the sender, the subject and the response from the company are recorded. The officer who is responsible for the process of consultation and communication with the community is the leader (manager) in each Estate unit.


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

There are procedures documents of Complaints and Grievance Handling (SOP/NP/SMART/XII/MCAR001). According to the SOP, complaints handling is classified into 3 following category: • Internal Complaints: complaints submitted by employees; for this type, Complaints and Grievance Handling Mechanism 1 is used. • External Complaints: complaints submitted by external parties; for this type, Complaints and Grievance Handling Mechanism 2 is used. • Complaints from women workers: complaints specifically submitted by women workers, for this type, Complaints and Grievance Handling Mechanism 1 is used. Socialization of Complaints and Grievance Handling has been carried out on 22 February 2013 for the community around the plantation and on 10 November 2012 for the employees (records of attendance list and documentation activities are available). The company has a form of complaints and grievances handling monitoring (Grievance Form). Based on the observations of the document, in 2013 there were no complaints, either from the community around the company or from the employees. There are also procedures of Land Compensation in Document Number SOP/NP/SMART/VII/D&L002. The scope of the SOP is to all activities related to the process and procedures for compensation for the Land/Plants in the Location Permit/Land Rights owned by the Company. Section 6, Action Steps, point 6.2 explained that after the Pre-Inventory activity is completed, the company made an inventory of the physical activity which is land measurements systematically in the form of: land area measurement, calculation of the number and type of plants per plot (inventory of land owners) in accordance with the certificate evidence of land ownership which was conducted and witnessed by the Land Acquisition Team and the local government, which consists of: Land owner, local government, Boundary Pointer, Riparian Witness (if any), the District officers, the Company.


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.

Associated with the provision of land compensation, PT Forestalestari Dwikarya has the mechanism in the form of SOP of Land Compensation in Document Number SOP/NP/SMART/VII/D&L002. The scope of the SOP is to all activities related to the process and procedures for compensation for the Land/Plants in the Location Permit/Land Rights owned by the Company. The aim is to ensure the plantation/mill’s area is free from the ownership by other parties so that the Company may conduct business activities on land owned, without any disturbance. All the negotiations and land compensation were performed through the approval of land owners and witnessed by representatives from the village and subdistrict governments. There is evidence of records available, among others; • Document of compensation or indemnity Summary which contains information about the name of the land owner, land

area and the nominal of compensation . • Letter of recognition of rights and Waiver Certificate from the land owners, witnessed by the subvillage head, village

head and subdistrict head. • Proof of payment receipt containing the name of the land owners, land area and nominal of compensation.


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

The company’s wage system was made based on Decree of the Governor of Bangka Belitung Number: 188.4472/TK.T/2012


ASSESSMENT REPORT


regarding the determination of Sectoral Minimum Wage (UMSK) of Belitung District Year 2013 is IDR 1,736,000. Based on observations of document of POM and estates employee wages recapitulation, the wage system has been in accordance with the provisions and has complied with Sectoral Minimum Wage (UMSK) Year 2013. The company has a Collective Labor Agreement (CLA) between PT Forestalestari Dwikarya with PUK SPPP SPSI ratified on 13 August 2007. Currently, the CLA has been expired; the drafting of the new CBA is still in process due to a change in the management of PUK SPPP SPSI of PT FLD. However, Article 46 of the Collective Labor Agreement stated that associated with the validity period of CLA, as long as the new CLA has not obtained agreement after the expiry of the former CLA, the provisions of the former CLA remains in effect until the new CLA is established. Based on field observations in TKMM, TKME and TRSE employees housing, the company has provided adequate public facilities, such as:

Housing employees with permanent buildings consisting of 2 bedrooms, living room, kitchen and a bathroom equipped with a toilet. The lights come from mills and generators. Clean water sources are derived from mills, reservoirs and wells.

Education facilities; the company provides a kindergarten and elementary school located in TKME, as well as school shuttle buses located not far from the school.

Health facilities; the company provides a clinic located in TKME and an additional clinic located in TRSE equipped with the company doctor and assisted by nurses.

Public facilities such as places of worship in form of mosques and churches; sports facilities, company provides soccer field, volleyball field, tennis and badminton court, in addition to the hall for employees as a meeting place and a place for integrated health service post (Posyandu) activities.

There is Mutual Work Agreement No. TKME/SPKLL/April-2013/13-Transport of FFB dated 11 April 2013, stated in Article 1 points 19 and 20 that the contractor stated their capability to comply with legislation on employment, especially those associated with payment of wages and age of workers, and to ensure OHS of all workers and to equip them with PPE. In addition, the results of the public consultation interviews with the contractor showed that there is a requirement for the contractor's employees to use personal protective equipment, and the Mutual Work Agreement mentioned that OHS and social security are the responsibility of the employer.


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.

There is Circular Letter No.045/CEO5-SE/11/2010 dated 16 November 2010 stating that the company respect the applicable provisions and regulations in Statute 21 Year 2000, including freedom of association for workers/employees which is basic rights of workers. Workers Union in PT FLD is in the form of Work Unit Board of Plantation and Agriculture Workers Union-Indonesian Workers Union (SPSI PUK SPPP) of PT FLD which is listed in Social, Labour and Transmigration Agency of Belitung District No. 560/08/D/DKKT/V/02 dated 25 April 2013. Based on the results of public consultation with Social, Labour and Transmigration Agency of Belitung District, PUK SPSI SPPP of PT FLD has just been active again so that there is no activity reported to Social, Labour and Transmigration Agency of Belitung District, for example related to the Collective Labor Agreement (still in draft preparation), moreover, the meeting has not been done, the existing meeting record is the formation of PUK SPSI SPPP for period of 2013-2018 which was established on 23 March 2013.


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.

Circular Letter from HR Director No. 002/SE-HRDV/03/09 dated 31 March 2009 regarding the Minimum Age Limit stated that the company set a minimum age limit of 18 years old based on Statute No. 13 Year 2003. Based on observations of the list


ASSESSMENT REPORT


of employees and field workers document in TKMM, TKME Division I and III, TRSE Division II and V there are no workers under 18 years old.


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.

Circular Letter of CEO 2 No. 096/CEO2-SE/12/2010 dated 14 December 2010 regarding the Implementation of Industrial Relations in each Unit, states that every operation of work unit must realize the industrial relations without distinction of ethnicity, religion, race and sex in all work fields. The results of the public consultation interviews of internal stakeholders (workers unions and women's commission) showed that there was no discrimination; the company provides the same opportunity for career development for all staffs, for example, the promotion of a foreman become an assistant.


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.

Circular Letter of CEO 2 No. 003/CEO2-SE/01/2011 dated 10 January 2011 requested to all unit leaders and their staffs to be able to disseminate to all employees regarding the prevention and handling of sexual harassment. As the implementation of policy of prevention and handling of sexual harassment, the company established a women commission in POM and Estates and prepared the workflow of sexual harassment handling. The reporting of sexual harassment incident is recorded in Record Book of Sexual Harassment and Violence Reporting which is available in the POM and estates; however up to June 2013 there has been no reporting of incidents. In addition, the company conducted dissemination of procedures for sexual harassment handling in PT FLD on 07 January 2011 attended by employees of POM and Estate as well as the women commission's members. Company policy on the protection of reproductive rights is set in: • Circular CEO 2 No. 095/CEO 2-SE/12/2010 dated 14 December 2010 regarding the provision of Menstrual Period

Permit states that women workers/labor who experience pain in menstrual period and based on company doctor's or paramedic examination and also notify the employer is not obliged to work on the first and the second day of menstrual period.

• Memorandum VPA PSM 2 No. 001/MEMO-VPA PSM2/04/2011 dated 08 April 2011 concerning pregnant and breastfeeding workers stated that the company does not allow pregnant and breastfeeding women workers to be spray workers.

• Collective Labor Agreement between PT Forestalestari Dwikarya with PUK SPSI for SPPP sector endorsed on 13 August 2007) : - Menstrual Leave (H1), for female employees for 2 days/month (first and second day) with a doctor's examination. - Maternity Leave (H2) for 3 months with details of 1.5 months before the birth and 1.5 months after the birth

according to the calculation of doctor's examination. Records of evidence of reproductive rights protection implementation, e.g. Doctor’s recommendation of a treatment worker of TKME Division 1 dated 13 March 2013 who was given 1 day break due to menstrual pain. Based on the observation of the worker’s attendance report and list of SKU detailed salary, her wages for the day was still paid. Specific complaints mechanism handling is available in SOP of Complaints and Grievance Handling (SOP/NP/SMART/XII/MCAR001) which was ratified by the chairman of MCAR dated 1 July 2010. The SOP describes the mechanism of submission of internal or external complaints or female workers’ complaints until the mechanism of resolution or response of the complaint.


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

Up to now PT Forestalestari Dwikarya does not conduct transactions or purchase fruit from other parties, all incoming FFB to Tanjung Kembiri Mill comes from smallholders’ estates. The price of FFB was set by Province Plantation Agency based on a meeting between the parties, namely the Plantation Agency, Plantation Manager, Oil Palm Growers Cooperative and others.


ASSESSMENT REPORT


The company has worked with several local contractors, for example for activities of FFB transportaion from estates to the mill and other supporting facilities construction. The cooperation is evidenced by the Mutual Work Agreement between the company and the contractors, including the payment mechanism which has been agreed and payment proofs.


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

PT Forestalestari Dwikarya’s contribution to local development includes the implementation of CD/CSR program in each estate unit (Social, Economic and Environmental Sectors) and also other activities, as well as the payment of tax obligations, among others; Land and Building Tax and Tax of the Collection and Utilization of Surface Water. There is evidence in the form of Report Summary of CD/CSR implementation in each estate unit and tax payment proofs.


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 no new plantation development in the area of PT Forestalestari Dwikarya. Based on Areal Statement from both Estates (Tanjung Kembiri Estate and Tanjung Rusa Estate), the youngest plants in HGU area of PT Forestalestari Dwikarya were cultivated in 1998.


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.



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.



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



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.



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.


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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.



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

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

The company has a policy as well as the action plan to reduce the use of paraquat. The company insists to replace paraquat with glyposat for all spraying in Harvest/FFB Collection point (TPH). Actual use of paraquat for January - June 2013 showed a decrease in paraquat use compared to that of the previous year. The use of paraquat in 2013 (2,187.07 liters) was lower than that of 2012 (2,666.96 liters). Based on the results of the visit in stage-1 there are four (4) potential non conformance and 9 (nine) opportunities for improvement (OFI). This non conformance was followed up by the companied by significant improvement actions so it could meet the requirements of the RSPO standards. Based on the visit in stage-2, the company have identified the root of the problem, determined corrective actions and preventive measures of the non conformance in the stage-1. The follow-up on the non conformance was recorded, documented and controlled by the company.



ASSESSMENT REPORT


3.2. Summary of Assessment Report of Supply Chain

Clause (Module D) CPO Mills - Segregation Requirements

1 Documented Procedures

1.1

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

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

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

a. Tanjung Kembiri Mill has a requirement procedures for the application of Supply Chain in the area of operations explaining Supply Chain Method used in the Mass Balance:

SOP of Mass Balance (PT FLD-TKMM/SOP/17) which describes the monitoring mechanismof products traceability processed by Tanjung Kembiri POM.

SOP of Measurement and Calculation of Production (PT FLD-TKMM/SOP/06) which describes the calculation procedure for the actual production of CPO and Kernel.

SOP of CPO and Kernel Production Delivery (PT FLD-TKMM/SOP/07) which explains the mechanism of the CPO and Kernel delivery implementation according to customer demand.

b. Duties and responsibilities of the personnel on the application of supply chain requirements, ie: - Assistant To perform monitoring of FFB received in accordance with prescribed standards and criteria. To perform monitoring of FFB processing To perform monitoring of the quality of quality analysis process of processed products

- Chief of Administrative To perform record keeping and reporting of the quantity and quality of processed products routinely To monitor the administration of FFB receipts and delivery of processed products To monitor that essential tools in the Supply Chain are in good conditions, accurate, licensed and maintained To perform Mass balance calculations based on the amount of products that can be claimed as Certified

Products - Manager To be responsible that the whole Supply Chain process can be done well To ensure that the Mass Balance calculations have been done correctly in order to know the amount of

Certified Products. To provide information to the relevant parties related to the total amount of Certified Products.

- Production Controller To ensure and to guarantee that the product resulted can be traced to the sources, the delivery so that the

products are acceptable according to quantity and quality.


1.2

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

Procedures owned by the company for documentation of the receipt and processing of certified and non-certified FFB, which is in the SOP of Mass Balance (PT FLD-TKMM/SOP/17) which describes the Mass Balance method allow the mixing of certified and non-certified products at any level in the supply chain.


2 Purchasing and goods in

2.1


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

Verification and documentation of certified and not certified FFB volume based on the organization's procedures are carried out by the Mill Administration Head and Mill Unit Head on (List of FFB Reception); the evaluation is done every month or every three month.


2.2

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

Tanjung Kembiri Mill has a commitment to inform the CB directly if there is excessive production projected, it is stated in the Declaration 1 of PT Forestalestari Dwikarya dated 1 February 2013 to achive Supply Chain Certification System that FLD will comply with the intent and requirements of RSPO Supply Chain Certification System and adhere to all the requirements contained there in.


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.

Tanjung Kembiri Mill - PT FLD can demonstrate the procedure or mechanism for storing records and reports related to the RSPO Supply Chain in SOP of l Document Contro (PT FLD-TKMM/SOP/18).

At Declaration 5 of PT Forestalestari Dwikarya dated February 1, 2013 on Documentation and Record Keeping states " PT Forestalestari Dwikarya declares to maintain accurate, complete and accessible records of these requirements and is able to report on a regular basis. Retention of these records shall be at least five (5) years.


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

Tanjung Kembiri Mill - PT FLD can indicate the procedure or mechanism of retention time of records and reports related to the RSPO Supply Chain for 10 years in the Document Control SOP (PT FLD-TKMM/SOP/18)

In Declaration 5 of PT Forestalestari Dwikarya dated February 1, 2013 on Documentation and Record Keeping states " PT Forestalestari Dwikarya declares to maintain accurate, complete and accessible records of these requirements and is able to report on a regular basis. Retention of these records shall be at least five (5) years.


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

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

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

a. The company already has a mechanism for recording and balancing of all receipts of certified and non-certified FFB every month or every three months in the document of Mass balance SOP and are supported by computerized Weightbride Program.

b. All volumes of certified and non-certified products have been prepared through a computerized program Weightbridge to count.

c. Sales of Mass Balance of positive stock are monitored through Weightbridge program.



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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.

The Company does not perform sales of certified CPO, however only perform the delivery of products to Bulking (Storage after POM); however Tanjung Kembiri Mill can not show relevant documents (contracts) which explains the name of trade and supply chain planning models used.

The Declaration 6 of PT Forestalestari Dwikarya dated February 1, 2013 on the Product Name describes " To achieve supply chain certification, we declare that the product named "" Crude Palm Oil (CPO) "/ IP or SG or MB and its name being cited in shipping and other documents for the product.


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

Tanjung Mill Kembiri only perform the sales of Palm Kernel to the other party.


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

Tanjung Kembiri Mill did not perform sales of certified CPO product, however only perform the delivery of products to Bulking (Storage after POM). Delivery documents of certified products are recorded in the Weighing Ticket of Products Receipts containing:

a. Name of the recipient (PT FLD - Belitung Bulking) b. Date of weighing c. Delivered product name (CPO) and a supply chain model that will be used (Mass Balance) d. The number of products delivered e. Documentation of Products Delivery with Product Delivery Note (SPB)

The Declaration 4 of PT Forestalestari Dwikarya dated February 1, 2013 on Sales and Production of Products (Sales and Goods Out) by CEO PSM 2 states “”PT Forestaletari Dwikarya Declares that invoices issues for RSPO palm oil or its derivatives contain the following information:

Name and address of the buyer The date of which invoice was issued Invoice number Name of product including IP, SG, MB Quantity Delivered Reference of TI Transport Documentation

This information is accessible to certified bodies appointed by RSPO for verification.


5 Processing


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5.1

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

Training of Supply Chain has been conducted by Tanjung Kembiri Mill to the personnel associated with the implementation of Supply Chain System used. The training was conducted on January 16, 2013 which was attended by 18 participants from related units (Estate and Mill). Records and documentation of Supply Chain Certification System training are available and stored in Tanjung Kembiri Mill’s office.


6 Claims

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

Tanjung Kembiri Mill shows information on the claim implementation that complies with RSPO regulations on Communication and Claim in Declaration 7 of PT Forestalestari Dwikarya dated February 1, 2013 on Claim / Statement describing "" PT Forestalestari Dwikarya declares that the only the make claims regarding the use of or support of RSPO certified palm oil derivatives or that are in compliance with the RSPO Guidelines for Communications and Claims (annex 10, Supply Chain Certification System) "".



ASSESSMENT REPORT


3.3. Conformity Checklist of Certificate and Logo Use (Only apply for Surveillance Assessment Report)

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

X or√

- Will be verified at the time of surveillance activities. -

Status: Not Applicable

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

X or√



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

X or√



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

X or√



3.4. Summary of RSPO Partial Certification.


ASSESSMENT REPORT


Total companies observed (0.5 √Y) Where Y is the total of uncertified RSPO registered company The Management Unit name : - Date of Observation: -

2.1

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

X or√

All subsidiaries under Golden Agri Resources Ltd are planned to be RSPO certified.

Status: Compliance

2.2

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

X or√


Status: Compliance

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√


Status: Compliance

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√


Status: Compliance

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√


Status: Compliance

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√


Status: Compliance

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√


Status: Compliance


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 ST1 Assessment

CAR No

Ref Std Finding Area Grade Time

Limits Corrective Action Observation Status

Closing Date

2013.01

Major 2.1.1

Compliance with the regulations. The company can show evidence of compliance with legal requirements related to Environmental, Land Tenure, OHS Management System and Employment, however there is a mismatch against the laws / regulations, namely:

a. Plantation Business Reporting for

each semester has not been

done in accordance with the

Regulation of No. 26 year 2007

b. On 24 December 2012, the

Company received Hazardous

Waste in form of 410 liter of used

oil from another company

(Saterindo Jaya Agropalma). It is

not included in the scope of the

storage permit.

NC Potential

Estate & Mill

Stage-2 a. The Company must report the plantation business activity in accordance with the Regulation of No. 26 of 2007 (Article 34, point h)

b. The Company should ensure that the harzardous waste management complies with hazardous waste storage permit

Root cause: Plantation Business reporting has not been identified as the company's obligation to be fulfilled. Corrective Action: The Company has reported the plantation business to relevant agencies in accordance with the Regulation of No. 26 year 2007 (Article 34, point h). The evidence of a copy of the report and delivery receipt of the report to relevant agencies. Preventive Action: Including Plantation Business Reporting into the list of regulations that must be met in the List of Evaluation of Compliance with Regulations. Auditors observations: 16 July 2013 The Company has submitted the report of the plantation business to the relevant agencies in accordance with Agriculture Minister Regulation No. 26 Year 2007 (Article 34, point h). Root cause: All hazardous waste generated by PT SJA is the waste that comes from transportation activities to support the operations of PT FLD, FLD thereby helps PT PT SJA in its

Closed 18 July 2013


ASSESSMENT REPORT


CAR No



Closing Date

hazardous management. However, PT SJA has not been registered as a hazardous waste producer that sends the waste to PT FLD’s landfill. Corrective Action : The company has obtain the approval of the relevant agency ( Environmental Body ) for the delivery and the storage of SJA’s hazardous waste in PT FLD’s hazardous waste landfill. The evidence of Environmental Body approval in written can be showed in the letter of agreement of Hazardous Waste storage of PT SJA in PT FLD. Preventive Action In the period of the extension of PT FLD’s hazardous waste landfill to District Local Environment Body, PT FLD will register PT SJA as a Hazardous Waste producer that will deliver hazardous waste to PT FLD’s hazardous waste landfill. Auditors observations : July 18, 2013 The company has obtain the approval of the relevant agency ( Environmental Body ) for the delivery and the storage of SJA’s hazardous waste in PT FLD’s hazardous waste landfill. The evidence of Environmental Body approval in written can be showed in the letter of agreement of Hazardous Waste storage of PT SJA in PT FLD.

2013.02

Major 3.1.1

Company Action Plan Document. The company action plans are prepared for the estate operations for period of one year. The estate’s action

NC Potential

Estate Stage-2 The Company must be able to demonstrate the company's action plans for a minimum period of the next 3

Root cause: The action plans in the form of production budget of operational activities are currently prepared in a period of one year according

Closed 12 Juni 2013


ASSESSMENT REPORT


CAR No



Closing Date

plans are available in the Production Budget Document, Mature Upkeep Document (the treatment of mature plants), Running Account Document (vehicles and heavy equipment) and General Account Document (general costs). However the company has not been able to demonstrate the company's action plans for a minimum period of the next 3 years.

years. the reference from the management. Corrective Action: The Company prepares production budget for a period of 3 years, the period from 2014 to 2016. Preventive Actions: The company ensures the preparation of the production budget for a period of 3 years and is acknowledged by the management. Auditors observations: June 12, 2013 The Company has established action plans for the period of 2014-2016, by taking into account the production of CPO, cost of revenue, cost of estates, mill costs, operating expenses, to obtain a picture of profit and loss that would be obtained

2013.03

Minor 4.6.1

Evaluation of the Use of Paraquat The Company can show the efforts of paraquat reduction in 2011 and 2012, however based on the results of the documents verification it is found that the budget for the use of paraquat in 2013 is still the same as the 2012 budget.

NC Potential

Estate Stage-2 The Company must consistently show efforts to reduce / eliminate the use of paraquat

Root cause: PT FLD has sought to perform paraquat reduction program optimally, however the climate conditions as well as the absence of paraquat substitution recommendation from SMARTRI cause the reduction of budget for the use of paraquat in 2013 compared to that of 2012 has not been possible yet. Corrective Action: At the application level, the use of paraquat are reduced. The reduction of paraquat is evidenced through RC circulars regarding the suggestion on paraquat application reduction by these following steps: 1. Dose of paraquat use is 250 cc / ha, and is only for one rotation. 2. Starting August 2013, paraquat application

Closed 19 Juli 2013


ASSESSMENT REPORT


CAR No



Closing Date

in The Harvest Collection Place (TPH) is only using glyphosate. Preventive Actions: - Using only paraquat to control Ferns weeds group. - Using the appropriate dose of paraquat recommended by Smartri - Coordinating with SMARTRI related to information of paraquat substitution to control Ferns weeds - The application of paraquat is only done by trained and certified spraying workers under the direct supervision of a certified foreman - Not applying paraquat in the area near the settlements, main water sources, and public roads. Auditors observations: 19 July 2013 The company has a policy as well as action plans to reduce the use of paraquat. The company insists to replace paraquat with glyposat for all spraying in place for Harvest/FFB collection place (TPH). In 2013, the budget particularly the use of paraquat has not changed. The realization of the use of paraquat for period of January-June 2013 showed a decrease in paraquat use compared to that of the previous year. The use of paraquat in 2013 (2,187.07 liters) is lower than that of 2012 (2,666.96 liters).

2013.04

Minor 6.1.3

Report of Environmental Management Plan/ Environmental Monitoring Plan (RKL / RPL)

NC Potential

Estate & Mill

Stage-2 The company has to manage and monitor important impacts in accordance with

Root cause: There are impacts required to be managed in EIA documents that have not been identified

Closed 17 July2013


ASSESSMENT REPORT


CAR No



Closing Date

Implementation The Company has reported the implementation of RKL / RPL routinely however the important impacts managed and monitored are not yet in accordance with the directions from Environmental Management Plan/ Environmental Monitoring Plan Matrix listed in EIA Document No 10 Andal which stated that there should be 10 important impacts managed and monitored, while the company currently has only 6.

the directions from Environmental Management Plan/ Environmental Monitoring Plan Matrix listed in EIA Document

in the Report of Environmental Management Plan/ Environmental Monitoring Plan. Corrective Action: There are Environmental Management Plan/ Environmental Monitoring Plan Implementation Report of semester 1 of 2013 and evidence of report delivery receipt by Environmental Body of Belitung District dated 15 July 2013. The report has been completed and has included social components that are monitored and managed in accordance with the EIA document requirement. Preventive Actions: Preparing report draft of Environmental Management Plan/ Environmental Monitoring Plan that contains all items of important impacts mandated to be managed and monitored in EIA document. Auditors observations: 17 July 2013 There are Environmental Management Plan/ Environmental Monitoring Plan Implementation Report of semester 1 of 2013 and evidence of report delivery receipt by Environmental Body of Belitung District dated 15 July 2013. The report has been completed and has included social components that are monitored and managed in accordance with the EIA document requirement.


ASSESSMENT REPORT


3.5.2 Identification of Findings, Corrective Actions and Observations at ST2 Assessment

CAR No



Closing Date

2013.05

Major 1.1.2

Responses to the Request for Information There is no enough evidence of responses to requests for information from the Agriculture and Forestry Agency of Belitung District through letter No. 525/123/DPK/2013 dated 7 February 2013 regarding requests for information of PT. Forestalestari Dwikarya’s Land Use Title (HGU).

Major Estate & Mill

Before the

certificate issued

The company must show the records of responses to requests for information from the Agriculture and Forestry Agency of Belitung District through letter No. 525/123/DPK/2013 dated 7 February 2013 regarding requests for information of PT. Forestalestari Dwikarya’s Land Use Title (HGU).

Root cause: 1. Communication and consultation letters register was not fully recorded by the management units of PT FLD concerned. 2. Some communication and consultation letters of relevant stakeholders (government and society) were coming through the representative office and were not recorded in PT FLD units concerned. 3. The letters addressed by the representative office directly to the head office in Jakarta, without any responses and were not recorded in PT FLD’s units, so the units did not know and had no records of the letter registration. Corrective Actions: 1. The Company updates books of requests for information and books of communication and consultation on the incoming mail from Plantation and Forestry Agency with letter numbers of 525/123/DPK/II/2013 and 522/264/DPK-VI/2013 addressed to the Chairman of PT Forestalestari Dwikarya and to the Director of PT Forestalestari Dwikarya. 2. Company on behalf of the Tanjung Kembiri Estate Unit has responded to the letter from the Agriculture and Forestry Agency with letter number of 058/FLD/EM-TKME/VII/2013 addressed to the Head of Agriculture and Forestry Agency of Belitung. Preventive Actions: The company makes Memorandum on Letter

Closed 23 July 2013


ASSESSMENT REPORT


CAR No



Closing Date

of Communication and Consultation from Stakeholders with letter number 006/RC-BB/MEMO/VII/2013 addressed to the Chief of Tanjung Pandan Representative Office, All Manager, KTU PT FLD, RC Staff, SPO Officer, and D & L TPNO. Auditors observations: July 23, 2013 The company has shown evidence of delivery of responses to requests for information from the Agriculture and Forestry Agency of Belitung District on requests for information of PT. Forestalestari Dwikarya’s HGU through submission of a response letter dated 19 July 2013.

2013.06

Minor 2.2.2

Conflict resolution mechanism accepted by the parties. There is an area in HGU that cannot be undertaken by the company because it is claimed as public land that cannot be compensated. For these lands, the company has not shown evidence of completion as stipulated in mechanism accepted by both parties.

Minor Estate Before the

certificate issued

The Company shall show evidence of land disputes resolution mechanism accepted by both parties

2013.07

Minor 4.6.2 dan

Minor 4.7.2

Operator’s Health examination Based on the field observation, there are spray workers that have not perform special health examination

Minor Estate Before the

certificate issued

Companies must show evidence that all spraying workers obtain special health examination

Root cause: Special health examination has been done only for spray workers who suffered from health problems based on physical examination. Corrective Action: The company identifies spraying workers who have not obtain special medical examination, budgeting examination cost, and preparing

Closed with

observation

23 July 2013


ASSESSMENT REPORT


CAR No



Closing Date

schedule of tests performed in stages. Preventive actions The company ensures all spray workers have special health examination, evaluating the results of the examination and workers with health problems perform further examination. Auditors observations: July 23, 2013 The company showed commitment of health examination to all spray workers through: identifying the number of employees who have not obtained health examination, budgeting the examination implementation cost, and preparing the schedule of exanimation in stage II in September and stage III in November 2013

2013.08

Major 4.7.1

OHS Program Policy Implementation Based on the observation of mill and estate operations there are workers who did not use appropriate PPE according to the standard, such as: wheel loader worker, engine room worker, and tree pruning worker working alone in the off hours.

Major Estate & Mill

Before the

certificate issued

The company must show evidence of implementation of OHS program policy

Root cause: The company has provide PPE for workers, however the workers' awareness of the importance of the use of PPE is still lacking. Corrective Action: The Company identifies and evaluates compliance with the use of PPE for all workers and makes the program as an effort to improve compliance with PPE use. Preventive Action The company ensures the program for increased use of PPE is on schedule. Auditors observations: July 23, 2013 The Company showed improvement measures by identifying the possible causes of the problem (PPE usage

Closed with

observation

23 July 2013


ASSESSMENT REPORT


CAR No



Closing Date

compliance evaluation for labor) and preparing action plan for increased compliance with the use of PPE

2013.09

Major 5.1.2

Implementation of the Environmental Management and Monitoring Environmental Management Plan and Environmental Monitoring Plan implementation reports have not included the results of environmental monitoring as requested by the EIA document specifically related to the monitoring of aquatic biota.

Major Estate Before the

certificate issued

The Company shall show evidence of environmental monitoring and management implementation as requested by the EIA document (RKL-RPL) specifically related to aquatic biota monitoring.

Root cause : Preparation of Environmental Management Plan and Environmental Monitoring Plan implementation reports does not refer to the approved EIA . Corrective Action : The company has shown evidence of environmental monitoring activities in accordance with the EIA documents specifically related to aquatic biota monitoring through theimplementation of aquatic biota measures by the Environmental Laboratory of South Sumatra provincial government. Preventive Actions: The Company ensures implementation of environmental management and monitoring in accordance with the draft preparation of EIA document through Environmental Management Plan and Environmental Monitoring Plan containing all significant impacts which are mandated to be managed and monitored in EIA documnet. Auditors observations : August 14, 2013 The Company shows evidence of environmental monitoring in accordance with EIA documents through the measurement of aquatic biota in Sungai Kembiri, Sungai Cerucuk, and Sungai Kepang Membalong conducted by Environmental Laboratory of BLH of South Sumatra Province on July 30,

Closed With

Observation

14 August

2013


ASSESSMENT REPORT


CAR No



Closing Date

2013. Observations will be made to the consistency of the monitoring implementation and reporting of environmental monitoring to relevant agencies in accordance with the EIA document requests

2013.10

Minor 5.3.2

Infectious hazardous waste reporting The Company do not include infectious hazardous waste to hazardous waste balance sheet reported to the relevant agencies.

Minor Estate & Mill

Before the

certificate issued

The Company must show the evidence of the inclusion of infectious hazardous waste to hazardous waste balance sheet reported to the relevant agencies.

Root cause: Infectious hazardous waste reporting has not been identified as obligations that must be met by the company. Corrective Action: The Company has reported infectious hazardous waste in the form of hazardous waste balance sheet.There is evidence of a copy of the report and the report delivery receipts to BLHD Pelalawan. Preventive Actions: Ensure infectious hazardous waste is recorded in hazardous waste balance sheet reported to the relevant agencies. Auditors observations: July 19, 2013 The Company shows the evidence of the inclusion of infectious hazardous waste to hazardous waste balance sheet reported to the relevant agencies.

Closed 19 Juli 2013


ASSESSMENT REPORT


3.5.3 Opportunity for Improvement

No Ref Std Descriptions

1 Major 1.1.1

Recording mechanism and implementation of information requests in accordance with the existing procedures are not optimally implemented

2 Major 1.1.2

The Company are encouraged to improve the performance of response to requests for information in accordance with existing procedures

3 Major 2.2.2

Plantation management through the provision of the HGU boundary poles coordinate data in accordance with the standards of relevant agencies (BPN) can be re-monitored

4 Minor 6.1.4

The Company is encouraged to present evidence and records of management and monitoring implementation of social impact in the Environmental Management Plan

and Environmental Monitoring Plan in a better way.

5 Major 6.2.1

Communication and consultation procedures known by the parties, especially the society can be improved.

6 Major 6.3.1

The Company is encouraged to ensure that the delivery mechanism of grievance, objections, and the settlement of disputes by the parties are known by the parties especially the public.

7 Major 6.9.2

Protection of reproductive rights socialized and understood by all workers need to be improved.

8 Minor 6.9.1

The Company is encouraged to increase the role of the Women Commission in the implementation of the sexual harassment prevention policy and protection of reproductive rights

9 Minor 6.9.2

The Company needs to ensure the monitoring process of the protection of reproductive rights especially those associated with maternity leave rights

10 Minor 6.11.1

Improvement of CD / CSR program preparation based on the identification of community needs.

3.5.4 Noteworthy Positive Components


1

The company's commitment to implementing the principles of sustainable management of oil palm

2

Personal competence (Staff) in their respective fields

3

- Have obtained ISCC certificate in 2012


ASSESSMENT REPORT



- Awards from the Ministry of Environment (Company Performance Rating Program in Environmental Management - PROPER Blue)

- Award as the Best Company of Assistance of Women Labor in Provincial Level


ASSESSMENT REPORT


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

Implementation : Monday, 15 July 2013 (interview)

Public Issues Management’s response Auditor’s response

Agency of Agriculture and Forestry, Belitung District (Head of Division)

The results of Plantation Business Assessment of PT Forestalestari Dwikarya which was last performed in 2012 with predicate of Class III, the drawback is the social aspects because the company does not accept fruit from outside / village surrounding the estate.

The reception of FFB from outside / villages surrounding the estate is still under consideration of the company management by taking into account the ability of Tanjung Kembiri Mill which the mill’s capacity is only capable of processing 1,200 tons/day (20 hour process) in the peak harvest conditions, while the production of estate exceeds 1,200 tons and harvest restrictions had to be carried out.

Limitations faced by the company currently to receive the fruit supply from the community can be understood. However, in order to maintain good relations with the community, the company needs to make sure the problem is communicated to avoid misunderstanding. In addition, the communication efforts need to be synergized with the increase in community’s welfare and through more productive CSR programs.

The company has regularly reported Plantation Business Progress Report each semester

The company still reports to relevant agencies for the compliance with Plantation Business Development.

The company needs to maintain positive achievements in terms of regular reporting on plantation activities to relevant agencies.

Letter No. 525/123/DPK/2013 dated 7 February 2013, on the request for HGU maps of PT Forestalestari Dwikarya as data inventory for the Agency of of Agriculture and Forestry has not been addressed.

The letter in question was never received by the estate or mill, but it was directly received by the branch office of PT FLD, and the letter is still in process in Jakarta, because the requested data is not available in the estate. However, the estate will follow up the requests for information.

The company should give serious consideration associated with the response to information requests from stakeholders, including the Agency of Agriculture and Forestry in accordance with applicable SOP of the company. Government agency is one of the major stakeholders in the oil palm plantation in Belitung which is important for the sustainability of the plantation business.

The company is encouraged to improve relations with the community to create a positive impact on the existence of the estate itself, so that the economy of the surrounding community can be better than before, for example in the provision of aids is still considered slow. The willingness of the company to receive FFB

The company has procedures in response to any request for assistance from the public, it can be proved in the communication books and aspiration books.

The issue of the reception of TBS has been described in point 1.a and 1.b

To maintain good relations with stakeholders, especially rural communy, the company is encouraged to improve the performance of communication and consultation with the community. In addition, communication efforts need to be integrated with an increase in social welfare and maintain a


ASSESSMENT REPORT




from the community to be processed by the mill. proportionate benefit sharing through more productive CSR programs.

Environment Body of Belitung District (Head of Sub-Division EIA and UKL / UPL).

The company has owned Document of environmental impact assessment (EIA) and RKL / RPL.

The Company has Land Application Permits and Permit for Dispose of Waste to Water Body

The company already has a license of Hazardous Material Storage.

Regular reporting obligation has been performed by the company, such as RKL/RPL reports every 6 months.

Hazardous Waste report every 3 months and effluent analysis report has been done routinely every month.

The company will continue to perform better and sustainable environmental management.

The company needs to maintain the positive achievement of environmental management that has been running, and ensure reporting of environmental management including RKL-RPL periodically is in accordance with applicable regulations.

National Land Agency of Belitung District

PT Forestalestari Dwikarya have had HGU and there is no case of land dispute and there is no obligation of smallholder scheme for PT. FLD. Currently the company will facilitate the management of public lands by assisting the implementation of oil palm cultivation in the villages surrounding the estate.

Although there is no obligation to build the smallholders scheme, PT Forestalestari Dwikarya has built smallholders scheme in the Village Kembiri.

The Company needs to maintain the positive achievement in terms of the land legality recording.

Social, Manpower and Transmigration Agency of Belitung District (Head of Industrial Relations).

PT Forestalestari Dwikarya has routinely reported The Company routinely fulfills the obligations of report employment requirement (WLTK).

The company needs to maintain the positive achievement in terms of manpower and to continually


ASSESSMENT REPORT




employment report administratively strive to improve the quality and standards of workers’ welfare.

PT Forestalestari Dwikarya has implemented the wage in accordance with UMSK of Belitung District in 2013 as much as IDR 1.736.000,-

PT Forestalestari Dwikarya has implemented the wage in accordance with UMSK of Belitung District in 2013 as much as IDR 1.736.000,-

The Company has provided the wage according to UMSP, see the explanation on criteria 6.5

There is no temporary labor agreement (PKWT) that must be registered and acknowledged by Social,

Manpower and Transmigration Agency of Belitung District.

The company has reported PKWT agreement to be registered and acknowledged by Social, Manpower and

Transmigration Agency of Belitung District on 28 September 2012 with letter No. 477/FLD -TKME/IX/2012

The company ensures the report is submitted to the authorities, so that reporting can be received well.

In PT FLD, there has been labor union which is Indonesian Labor Union (SPSI) which is already recorded and registered to Social, Manpower and

Transmigration Agency of Belitung District. SPSI has just been active again currently so that there is no activity reported to the Agency, for example activities related to Collective Labor Agreement (CLA).

There has been a new board formation of labor union but there has been no request for CLA negotiations as stated in Manpower Ministry Regulation No. 16 Year 2011, therefore as long as there is no new CLA, the former CLA is still applicable and the company has received a statement from the SPSI that the former CLA is still valid. This is according to a statement from DPC No. 002/SKET/PC.FSPPP/BEL/2012.

The company is encouraged to facilitate the workers so that labor unions can be active and functioned as required.

PT FLD has already established Guiding Committee of OHS (P2K3) endorsed by Social, Manpower and

Transmigration Agency of Belitung District and has performed reporting regularly (quarterly), but the content of the reports have not listed the activities of Guiding Committee of OHS. Currently the reports only list the number of fire facilities and health examination, so it have not described that Guiding Committee of OHS functions as required.

The Chairman of Guiding Committee of OHS in PT FLD will request the report format from Social, Manpower and

Transmigration Agency of Belitung District, so that the content of the reports can include all Guiding Committee of OHS activities.

The chairman of Guiding Committee of OHS will coordinate with the from Social, Manpower and

Transmigration Agency of Belitung District in preparing the upcoming reports of Guiding Committee of OHS

The company is able to continue to maintain the commitment to perform employment reporting on a regular basis and improving the quality of the reports’ contents as continuous improvement.

Occupational accident report has not been consistently The occupational accidents have been reported on a regular basis to Social, Manpower and Transmigration

Occupational accident report is attached to the Guiding Committee of OHS’ quarterly report.


ASSESSMENT REPORT




reported. Agency of Belitung District through Guiding Committee of OHS’ quarterly reports. The last report is the second quarter report period of April to June 2013, which was reported on 4 July 2013. The occupational accident data which will be reported is the recapitulation of mild, moderate or severe accident.

There is no industrial relations problems reported to Manpower Agency.

The company has had procedures for handling complaints and grievances so that complaints and grievances can be handled internally. Industrial relation disputes are resolved as far as possible through bipartite negotiations as mandated by Statute No. 02 Year 2004

Based on the results of interviews with labor unions and women committees, there is no issue of industrial relations between workers and the management.

The Community of Villages around PT FLD’s Plantation (Membalong, Prepat, Simpang Rusa, Lassar, Cerucuk Villages)

The positive aspect of the existence of company is hiring local workers, although the number is still limited for to a few villages

The company has hired the local workers from all the villages around the estate and covered larger areas by considering the criteria and the needs of workers in the company.

The Company needs to maintain the positive achievement

in terms of local employment as part of welfare society improvements.

CSR and Assistance for Rural community: - There has been no CD / CSR program made

based on the community needs (based on the needs identified by the community). All the programs were done from the company’s initiative or response to donations proposal.

- Some villages such as Simpang Rusa and Lassar could obtain the assistance easily as long as it was requested well in advance, such as heavy equipment for repairing the roads and clean water supplies.

- Existing assistance: social events, glasses for

CSR and Assistance for Rural community: - The company has been performing CD/CSR

program as a form of response to the proposals of assistance request from the stakeholders. Currently, the company is in the process of preparing CSR Strategic Plan as a guide in the implementation of more targeted CD/CSR programs in the coming years.

- The company maintains a harmonious relationship while responding to requests for assistance in accordance with existing procedures

The Company needs to maintain a positive achievement in

terms of the social field. However, the issues on CSR which has not been evenly distributed and has not been in accordance with community’s needs, can be the driving factors to evaluate existing CSR programs through accurate research in the community. The evaluation can be combined with the monitoring of the impact of the social environment that are required to be done every year by RKL-RPL documents.

The company is also encouraged to develop CSR activities that are more productive and in accordance with the actual needs of the community


ASSESSMENT REPORT




elementary school students and teachers (last year) and social events in the form of free medication for the people in Kembiri village.

- There should be a policy from the company to compensate the surrounding villages, especially the villages whose most areas have become oil palm plantation of PT FLD .

- There are “Smart” scholarships Smart but they have not been given to some villages such as Cerucuk village.

- Community’s requests for assistance should not be processed too bureaucratically while community’s proposals are often not responded. Some villages such as Membalong complained the difficulties in obtaining assistance or the assistance was often not as requested .

- In addition to the assistance that has been mentioned, the company has also provided assistance for constructing worship and sports facilities

- The company’s policy to surrounding villages is

given in the form of CD/CSR programs.

- “Smart” scholarship program for children of employees and surrounding communities was done through a selection process conducted by the company and relevant colleges.

- The Company has had procedures in responding

to any requests for assistance from the community, which can be proved in the communication books and aspirations books

The company needs to ensure that the limited availability of information of HGU hectarage for each village can be understood by the community, so it does not become a bad precedent that the company is not transparent in terms of land tenure.

The arising aspirations regarding land and HGU need to be responded seriously through a process of dialogue and communication with the villages’ officials as a form of anticipation of the possibility of land disputes in the future.

HGU land boundary of PT. FLD’s estates - Up to now, the village officials do not know the

hectarage of PT FLD’s estates, which are included in the territory of each village.

- There has been a verbal request from the Village

on employees information for the benefit of the village administration, the information but has not been obtained until now.

- The village also do not know the estates boundaries so there are the company’s estates that overlap with villager’s estates (for example Mr.

- The company does not have data related to

information of PT FLD’s estates’ hectarage which are included in the territory of each village. because of HGU does not explain the boundaries of the village.

- In accordance with the existing procedures, the company has limitations in responding to requests for information which is delivered orally. However, the company will re-confirm the number of workers in the company for the benefit of the village administration.

- The company has never received a complaint in

- The company needs to ensure that the limited availability

of information of HGU hectarage for each village can be understood by the community, so it does not become a bad precedent that the company is not transparent in terms of land tenure.

- The arising aspirations regarding land and HGU need to be responded seriously through a process of dialogue and communication with the villages’ officials as a form of anticipation of the possibility of land disputes in the future.


ASSESSMENT REPORT




Dahlan’s estates, which has a land certificate but it cannot be used because there are oil palm trees owned by PT FLD). The buyer, Mr. Aminuddin, have submitted a complaint to the company.

- For land that its HGU is expired, the extension process should involve the village government

writing and National Land Agency also stated that PT FLD has no land disputes problems.

- If HGU is expired, the extension process will be done in accordance with applicable regulations

-

Communication and Information Response Mechanisms:

- The community does not know the standard mechanism to communicate with the company.

- Lack of intermingling and assimilation of the leaders of the company to the surrounding villagers.

- There has been a verbal request from the Village

on employees information for the benefit of the village administration, the information but has not been obtained until now.

- The company has socialized communication and

consultation procedures on 22 February 2013 which was attended by Manpower Agency, local Environment Body, Forestry and Plantation Agency, village Heads, community leaders and muspika (subdistrict leaders discussion) elements.

- The company leaders perform intermingling and assimilation by attending traditional events, weddings, circumcisions and grief. The relation between the company and the surrounding community up to now is quite good.

- In accordance with the existing procedures, the company has limitations in responding to requests for information which is delivered orally. However, the company will re-confirm the number of workers in the company for the benefit of the village administration.

- The complaints regarding the communication and

information flow between the company and community needs to be addressed properly. The company is encouraged to evaluate the implementation of communication and information exchange standards that have been developed by the company.

- The company has the opportunity to increase the performance of communication by developing a mechanism to record the aspirations and grievances verbally, not only in written.

Health services for the community and employees are still too administrative despite the urgent condition. Complaints about health services have been delivered

The company provides health care for employees and their dependents by itself through health care unit that has been provided in the estates and company’s

The company needs to maintain the positive achievement

and is encouraged to continuously improve the performance of health care to employees according to


ASSESSMENT REPORT




verbally to management but there has been no response.

- For example, a harvester in Division II who was ill and requested a sick note from the paramedics in the clinic but he could not obtain the note, the paramedics only gave a note recommending light work.

referral hospital. In the event of any complaint of sick employees, the company is subject to the recommendation of a physician who acts according to the code of medical ethics.

applicable regulations.

The crops of Perpat villagers in the form of rice were affected by pests such as rats as the impact of oil palm plantation activities (Perpat village is adjacent directly to PT FLD, Division 5 & 7 of Tanjung Rusa Estate)

In general, the rat that attack rice plants is not the same as that in the oil palm estates. Up to now, the company has never been informed regarding rat problem in the rice fields adjacent to the estate. The company will coordinate with the Perpat Village Head and communities who directly adjacent to the company to reduce rat infestation.

The field visits to Perpat village’s farmland adjacent to Tanjung Rusa Estate showed that rat pests attack was occurred.

Interviews with farmers indicated that the rats attack (both mouse and rat land to oil palm) have lowered the villagers’ farm crops significantly.

The company is very encouraged to work together with residents and Perpat village officials to anticipate rat pests from damaging the crops.

The steps of an integrated pest management to be ensured that it is effective to avoid the disputes between the company and the community

There have been no smallholders’ estates in some villages as in Simpang Rusa

The company welcomes the community’s aspirations to build scheme estates in accordance with the applicable provisions as in the Kembiri village.

The company is encouraged to be able to realize the community’s aspirations so that they feel the benefit of the company’s existence.

At each road, there is always a portal but there are no security posts, so that people are blocked when they want to go through (examples in Division 1, 2, 3 Tanjung Kembiri Estate)

Currently, the company is building security posts at the portal which is the road access of the company and community. For example in the corridor of Division 1, 2 and 3 of Tanjung Kembiri Estate.

The company is encouraged to continue the positive achievements related to the road access to avoid a conflict with the community

The community from some villages really expect FFB from their estates can be bought by PT FLD’s mills.

The reception of FFB from outside/villages around the estates is still under consideration of the company management by taking into account the ability of Tanjung

Limitations faced by the company currently to receive the fruit supply from the community can be understood. However, in order to maintain good relations with the


ASSESSMENT REPORT




Kembiri mill.

The mill’s capacity is only capable of processing 1,200 tons/day (20 hour process) in the peak harvest conditions, while the production of estate exceeds 1,200 tons and harvest restrictions had to be carried out.

community, the company needs to improve the quality of communication with all parties especially the community. In addition, as efforts to increase the community’s welfare and to maintain proportional sharing benefit, the company needs to improve community development performance through more productive CSR programs.

Environment:: - There have been discussions with the

Environment Agency on mill’s waste management - There are no problems related to waste

management

The company will continue to perform better and sustainable environmental management

The company needs to maintain the positive performance in the environment management and to avoid disputes due to environmental pollution. Periodic environmental management and environmental monitoring as required in EIA needs to be done consistently.

Contractor

There is a requirement for employees of contractors to use Personal Protective Equipment

Mutual Work Agreement (SPK) mentioned that OHS and social security (Jamsostek) become the responsibility of employers

There is no administrative payment difficulties

The company also requires the contractor to comply with the regulations in force in the field of employment perundanngan.

The company has been making payments according to the agreement set forth in the SPK.

The company needs to maintain the positive performance in the work relationship with the contractors to support the sustainability of the plantation business.

Internal Stakeholders

As a worker from the experience since the first day of work, women’s reproductive rights have been met by the company and she has attended some socialization and training related to employment and the rights and protection of women.

Facilities for spray workers in the form of PPE (boots, gloves, apron, goggles) and extra milk.

No children work in PT FLD.

One of the sensitive issues is the discourse of

The company pays attention to and protects the rights of women by facilitating the formation of the women's commission.

The company still concerns on the aspect of OHS and make the use of personal protective equipment in accordance with workplace risks, as the culture.

The company adheres to the applicable rules and regulations to not employ children in PT FLD.

The discourse of premium calculation based OER is to

The company needs to maintain the positive performance in the protection of workers, protection of women and protection of reproductive rights.

Sensitive discourse which potentially causes disputes has to be taken seriously. The company is encouraged to actively engage in dialogue.

The company has the opportunity to improve performance through the assessment of mechanism of recording complaints and objections which were


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calculating premiums based on OER, although it is still a discourse.

The company needs to take firm action against any act of theft in order to avoid jealousy.

There is no discrimination by the company. The company gives equal opportunity to develop career to all staff.

educate and improve the quality of FFB through tight supervision without affecting to the rights of employees. This discourse is applied to the foreman and clerk and aims to discipline the employee's performance.

The company will not tolerate any criminal acts that harm the company and employees.

The company's commitment is manifested in a Circular Letter.

delivered orally in order to anticipate the potential for internal conflict.


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4.0 CERTIFIED ORGANISATION'S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Sign-off of Assessment Findings

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

Signed on behalf of:

PT Forestalestari Dwikarya

Mutuagung Lestari

Head of Environmental Departement

Lead Auditor

Ismu Zulfikar

Bukti Bagja

30 August 2013

30 August 2013


ASSESSMENT REPORT


No Institution/NGO/Commu

nity Address Phone/Email Form of Contact

Date of Contact

1 Forestry and Agriculture

Agency (Dinas Pertanian

dan Kehutanan)

Jl. A. Yani No. 90 Tanjungpandan, Belitung

Telp. (0719) 21046

Fax. 23831

Interview 04 July

2013

2 Environmental Agency

(Badan Lingkungan

Hidup Daerah)

Jl. Anwar, Tanjungpandan, Belitung

Telp. (0719) 25243 Interview 04 July

2013

3 National Land Agnecy

(Badan Pertanahan

Nasional)

Jl. Sriwijaya Paal Satu, Tanjungpandan, Belitung

Telp. (0719) 21040 Interview 04 July

2013

4 Social, Labour and

Transmigration Agency

(Dinas Sosial, Tenaga

Kerja dan Transmigrasi)

Jl. Jend. A. Yani No. 100, Tanjungpandan, Belitung

Telp. (0719) 21355

/7000564

Fax. (0719) 21355

Interview 04 July

2013

5 Membalong Village Head Desa Membalong, Kecamatan Membalong Kabupaten Belitung

- Interview 10 July

2013

6 Prepat Village Head Desa Prepat, Kecamatan Membalong Kabupaten Belitung

- Interview 10 July

2013

7 Simpang Rusa Village

Head

Desa Simpang Rusa, Kecamatan Membalong Kabupaten Belitung

- Interview 10 July

2013

8 Lassar Village Head Desa Lassar, Kecamatan Membalong Kabupaten Belitung

- Interview 10 July

2013

9 Cerucuk Village Head Desa Cerucuk, Kecamatan Membalong Kabupaten Belitung

- Interview 10 July

2013

10 FLD Worker Union PT FLD - Interview 10 July

2013

11 FLD Gender Committee PT FLD - Interview 10 July

2013

12 Contractor - Interview 10 July

2013

13 WALHI Bangka Belitung Jl.Belanak Raya No. 64 RT.02 RW.02 Kelurahan Air Salemba Kecamatan Pangkalbalam, Kode Pos: 33111 Kota Pangkalpinang Prov. Kepulauan Bangka Belitung

Telp/Fax: (0717)

438160 email:

ed.walhibabel@gmail

.com,

[email protected]

Questioner by

Email

09 July

2013

14 Sawit Watch Perumahan Bogor Baru Block C1 No 10. (http://goo.gl/maps/ftzDi) Bogor. Jawa Barat. 16127 Indonesia.

Telp: (0251) 8352171 Fax: (0251) 8352047 Email :

[email protected]

Questioner by

Email

09 July

2013

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





ASSESSMENT REPORT


DATE / TANGGAL 15 – 19 JULY 2013

ACTUAL DURATION PROCESSES / CLAUSES TO BE AUDITED AUDITOR

Monday, 15 July 2013

06.00 - 08.00

09.00 – 12.00

Jakarta - Belitung Opening Meeting Public Consultation a. Public meeting (related community, villagers, contractors, Worker

Union, Gender Committee, NGO, etc..) – FLD b. Related Government Institution (Kab. Belitung)

BB / OR / MM / NK/ON a. OR / BB & ON

b. NK / MM

Tuesday, 16 July 2013

08.00 - 08.30

09.00 – 12.00

Document Review a. Document Review of Tanjung Kembiri POM and Supply Base

(Tanjung Kembiri Estate & Tanjung Rusa Estate) b. Review of Previous Visit Non-conformance (stage-1)

a. OR / BB & ON / NK / MM

b. OR / BB & ON / NK / MM

12.00 – 14.00 BREAK

14.00 – 17.00 Field Observation: a. Tanjung Kembiri POM worker facilities

- housing, health clinic, clean water, etc b. Tanjung Kembiri Estate – Division 3

- Worker facilities (housing, health clinic, clean water, etc) - Land Fire facilities, Storage, et..

a. BB & ON / NK

b. OR / MM

Wednesday, 17 July 2013

08.00 - 12.00

Field Observation: a. Tanjung Kembiri POM: WWTP (IPAL), Operational, K3 (OHS),

Supply Chain b. Tanjung Kembiri Estate – Division 1

- Manuring, Spraying, Harvesting, best agricultural practices - Worker facilities (housing, health clinic, clean water, etc) - Land Fire facilities, Storage, et..

a. BB & ON / NK

b. MM / OR

12.00 – 14.00 BREAK

14.00 – 17.00 Field Observation: c. Tanjung Kembiri Legal Operational Area

- Legal Boundary Continue of Checklist Review and Follow up from Field Observation

c. BB & ON

c. OR / MM / NK

Thursday, 18 July 2013

08.00 - 12.00

Field Observation: a. Tanjung Rusa Estate – Division 5

- Manuring, Spraying, Harvesting, best agricultural practices b. Company Conservation Area (HCV area) c. Tanjung Rusa Estate – Division 5 worker facilities

- housing, health clinic, clean water, etc - Land Fire facilities, Storage, et..

a. MM

b. BB & ON / OR c. NK

12.00 – 14.00 BREAK

14.00 – 17.00 d. Continue of Checklist Review and Follow up from Field Observation

e. BB & ON / OR / MM / NK

Friday, 19 July 2013

Appendix 2. Assessment Program


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DATE / TANGGAL 15 – 19 JULY 2013

ACTUAL DURATION PROCESSES / CLAUSES TO BE AUDITED AUDITOR

08.00 - 12.00

Field Observation: a. Tanjung Rusa Estate – Division 2

- Manuring, Spraying, Harvesting, best agricultural practices b. Tanjung Rusa Legal Operational Area

- Legal Boundary c. Tanjung Rusa Estate – Division 2

- housing, health clinic, clean water, etc

a. MM / NK

b. BB & ON

c. OR

12.00 – 14.00 BREAK

14.00 – 16.00 16.00 – 17.00

f. Audit Finding Conclusion Preparation / Team Meeting g. CLOSING MEETING

h. BB & ON / OR / MM / NK


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Appendix 3. Glossary

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

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

B3 : Bahan Beracun dan Berbahaya (Hazardous Material Waste)

BOD : Biological Oxygen Demand

BPN : Badan Pertanahan Nasional (National Land Agency)

CPO : Crude Palm Oil

CSR : Corporate Social Responsibility

EIA : Enviromental Impact Assessment

FPIC : Free, Prior and Informed Consent HCV : High Conservation Value (Nilai Konservasi Tinggi)

HGU : Hak Guna Usaha. (Land Use Permit)

IUP : Izin Usaha Perkebunan (Plantation Operation Licence)

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

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

Jankos / EFB : Janjangan Kosong / Empty Fruit Bunch

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

KER : Kernel Extraction Rate

KHL : Karyawan Harian Lepas (Daily Non-permanent Employee)

KHT : Karyawan Harian Tetap (Daily Permanent Employee)

KLK : Kuala Lumpur Kepong Bhd

LA : Land Application

LSC : Land and Soil Capabilty

LC : Land Clearing

MAA : Mill Audit and Advisory

MCAR : Management Committee Agronomy and Research

MCMD Management Committee for Mill Development

MSDS : Material Safety Data Sheet

OER : Oil Extraction Rate

P2K3 : Panitia Pembina Keselamatan dan Kesehatan Kerja (Committee of Occupational Safety & Health)

PHT (IPM) : Pengendalian Hama Terpadu (Integrated Pest Management)

PK : Palm Kernel

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

POME : Palm Oil Mill Effluent

PT FLD : PT FORESTALESTARI DWIKARYA

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

RSPO : Roundtable on Sustainable Palm Oil

SIA : Social Impact Assessment

SIO : Surat Ijin Operator (Operator License)

SOP : Standard Operating Procedure

ST-1 : Stage 1

ST-2 : Stage 2

S-1 : Surveillance 1

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

TKMM : Tanjung Kembiri Mill

TKME : Tanjung Kembiri Estate

TKRE : Tanjung Rusa Estate

VPA : Vice President Agronomy

· 1.2.10 Registered as RSPO member 1-0096-11-000-00, 31 March 2004 ... (ISO 9001-2008/SNI...

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Transcript of · 1.2.10 Registered as RSPO member 1-0096-11-000-00, 31 March 2004 ... (ISO 9001-2008/SNI...