· 2014-11-02 · PT MUTUAGUNG LESTARI ASSESSMENT REPORT SPO – 4006a.5 Prepared by RAMAMutuagung...

PT. MUTUAGUNG

LESTARI

ASSESSMENT REPORT

Roundtable on Sustainable Palm Oil Certification

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

Plantation Management/Owner : PT. RAMAJAYA PRAMUKTI – IVOMAS

TUNGGAL

Plantation Name : RAMA-RAMA POM – Ramarama Estate,

Sungai Tapung Plasma, Amarta Jaya Plasma

Location :

Petapahan Village, Tapung Sub-district, Kampar Regency, Riau Province, INDONESIA

Certificate Code : MUTU-RSPO/010

Date of certificate issue : 12th January 2012

Date of expiry of certificate : 11th January 2017

Assessment Assessment

Date PT. Mutuagung Lestari

Auditor Checked

by Approved

by

ASA-02 28th – 31st October 2013

Y. Wisnu Rahmanto, M Syarip

Lambaga, Nanang Mualib, Rudi

Ramdani, Naila Karima, Steve

Mualim

Octo

Nainggolan

Tony

Arifiarachman

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:

ASA-02 January 9th, 2014

December 16th, 2013

http://www.mutucertification.com/

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5

Prepared by Mutuagung Lestari for RAMA-RAMA POM – PT RAMAJAYA PRAMUKTI

TABLE OF CONTENT

Figure 1. Location Map of RAMA RAMA ESTATE – PT RAMAJAYA PRAMUKTI 1

Figure 2. Location Map of AMARTA JAYA PLASMA & SUNGAI TAPUNG PLASMA 1

1.0 SCOPE OF THE CERTIFICATION ASSESSMENT 3

1.1 National Interpretation Used 3

1.2 Area Statement 4

1.3 Description of Supply Base 4

1.4 Year of Plantings and Cycles 5

1.5 Approximate Tonnage Certified 6

1.6 Other Certifications 6

1.7 Time Bound Plan for Other Management Units 6

2.0 ASSESSMENT PROCESS 8

2.1 Certification Body 8

2.2 Assessment Team 8

2.3 Assessment Methodology, Assessment Process and Locations of Assessment 9

2.4 Stakeholder Consultation and List of Stakeholders Contacted 10

2.5 Determining Next Visiting 11

3.0 ASSESSMENT RESULT 12

3.1 Summary of Assessment Report of the RSPO Certification 12

3.2 Summary of Assessment Report of the RSPO Certification ASA-1 Scheme Smallholders SUNGAI TAPUNG PLASMA & AMARTA JAYA PLASMA 29

3.3 Summary of Assessment Report of Supply Chain 45

3.4 Conformity Checklist of Certificate and Logo Use 50

3.5 Summary of RSPO Partial Certification. 51

3.6 Identification of Findings, Corrective Action, Observations, Opportunity for Improvement and Noteworthy Positive Components. 53

3.7 Summary of Arising Issues from Public, Management and Auditor Response 56

4.0 CERTIFIED ORGANISATION'S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY 62

4.1 Formal Sign-off of Assessment Findings 62

APPENDICES 63

Appendix 1 List of Stakeholder Contacted in the RSPO Certification Process 63

Appendix 2 Assessment Program 64

Appendix 3 Glossary 66

Appendix 4 List of Smallholder Members 67


ASSESSMENT REPORT

SPO – 4006a.5 Page 1


Figure 1. Location Map of RAMA RAMA ESTATE – PT RAMAJAYA PRAMUKTI


ASSESSMENT REPORT

SPO – 4006a.5 Page 2


Figure 2. Location Map of AMARTA JAYA PLASMA & SUNGAI TAPUNG PLASMA

PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 Page 3 Prepared by Mutuagung Lestari for RAMA-RAMA POM – PT RAMAJAYA PRAMUKTI

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, RSPO INA-SWG, Scheme

Smallholders October 2009 and RSPO Supply Chain Certification Standard November 2011.

1.2 Organization Information

1.2.1 Company name IVO MAS TUNGGAL

1.2.2 Contact person Ismu Zulfikar

1.2.3 Company address and site address Head Office: Sinarmas Land Tower 2, 30th Floor JL. MH Thamrin No 51 Kav 22 Jakarta 10350 Indonesia Site: Petapahan Village, Tapung Sub-district, Kampar Regency, Riau Province.

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 1-0056-08-000-00, 17th June 2008

1.3 Type of Assessment

1.3.1 Scope of Assessment Mill and Oil Palm Estate

1.3.2 Type of certificate Single

1.3.3 Company names listed in the certificate PT. RAMAJAYA PRAMUKTI

1.3.4 Number of management unit 1 (one) unit of Rama-Rama POM and its supplied by Rama-rama Estate, Sungai Tapung Plasma and Amarta Jaya Plasma

1.4 Locations of Mill, Plantations and Area Statement

1.4.1 Location of Mill

Name of Mill Location

GPS

Latitude Longitude

Rama rama POM Petapahan Village, Tapung Sub-district, Kampar Regency, Riau Province

00 32' 00.58” N 1010 04' 34.97” E

1.4.2 Location of Supply Base

Name of Supply Base Location

GPS

Latitude Longitude

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


ASSESSMENT REPORT


Rama Rama Estate Petapahan Village, Tapung Sub-district, Kampar Regency, Riau Province

00 33' 06.12” N 1010 06' 49.57” E

Amarta Jaya Plasma (scheme smallholders) 0° 32’ 02.64” N 101° 04’ 47.42” E

- KUD Makmur Lestari

Kenantan Village, Tapung Hilir Sub-district, Kampar Regency, Riau Province

0° 31’ 27.68” N 101° 04’ 59.63” E

- KUD Sibuak Jaya 0° 29’ 10.21” N 101° 07’ 36.16” E

- KUD Muara Mahat 0° 29’ 24.04” N 101° 05’ 21.27” E

- KUD Mekar Jaya 0° 27’ 46.76” N 101° 05’ 18.31” E

- KUD Mukti Lestari 0° 27’ 11.95” N 101° 06’ 27.13” E

Sungai Tapung Plasma (scheme smallholders) 00 45’ 03.49” N 1010 14’ 44.94” E

- KUD Karya Tani Suka Maju Village, , Tapung Hilir Sub-district, Kampar Regency, Riau Province

0° 45’ 12.20 N 101° 16’ 09.85 N

- KUD Tunas Makmur 0° 46’ 08.52 N 101° 14’ 22.37 N

- KUD Cinta Damai 0° 50’ 05.65 N 101° 12’ 48.40 N

- KUD Bangun Desa 0° 48’ 10.72 N 101° 12’ 43.26 N

- KUD Berkat Lestari 0° 51’ 19.80 N 101° 10’ 16.15 N

1.4.3 Tenure

Private

State* 4,082.11 Ha

Community** 10,011.00 Ha

* based on HGU certificate; ** based on total land ownership certificate (persil) of farmers

1.4.7 Area Statement

Total area 14,093.11 Ha

Mature area 13,887.40 Ha

Immature area - Ha

Mill/building/roads 194.67 Ha

Ditch/swamp/river 5.09 Ha

Aircraft runaway 5.95 Ha

Conservation area 171.1 Ha

Others 205.71 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 (%)

RAMA-RAMA POM

60 273,658.57 53,813.48 19.66 14,760.59 5.39 - -

*source: received and process of Rama-rama POM October 2012 – September 2013

1.5.2 Description of Estate(s)

Name of Estate(s) Total Area

(Ha)

Planted Area (Ha)

FFB (tonnes/year)

Yield (tonnes/ha/year

)

Supplied to Mill

FFB (tonnes/year

%


ASSESSMENT REPORT


)

RAMA-RAMA ESTATE 4,082.11 3,876.40 107,176.37 28.00 107,176.37 39.16

AMARTA JAYA PLASMA** (scheme smallholders)

4,426.00 4,426.00 123,322.77 27.86 123,322.77 45.06

- KUD Makmur Lestari 1,000.00 1,000.00 26,533.02 26.53 26,533.02 9.70

- KUD Sibuak Jaya 1,066.00 1,066.00 29,766.37 27.92 29,766.37 10.88

- KUD Muara Mahat 914.00 914.00 26,719.21 29.23 26,719.21 9.76

- KUD Mekar Jaya 964.00 964.00 26,301.75 27.28 26,301.75 9.61

- KUD Mukti Lestari 482.00 482.00 14,002.42 29.05 14,002.42 5.12

SUNGAI TAPUNG PLASMA** (scheme smallholders)

5,585.00 5,585.00 170,432.64 30.51 5,221.45 1.91

- KUD Karya Tani 840.00 840.00 27,489.43 32.73 1,986.08 0.73

- KUD Tunas Makmur 1,160.00 1,160.00 38,920.02 33.55 3,235.37 1.18

- KUD Cinta Damai 1,257.50 1,257.50 36,485.12 29.01 - -

- KUD Bangun Desa 1,671.00 1,671.00 48,141.21 28.81 - -

- KUD Berkat Lestari 656.50 656.50 19,396.86 29.55 - -

TOTAL 14,093.11 13,887.4 400,931.78 28.68 235,720.59 86.13

*source: FFB received of Rama-rama POM October 2012 – September 2013. FFB supply of 2 cooperatives (Karya Tani & Tunas Makmur) under Sungai Tapung Plasma which sent to Rama-Rama POM only for 3 months (October-December 2012). Remaining of FFB supply from other cooperatives under Sungai Tapung Plasma has delivered to Libo POM. ** list of smallholder members please see Appendix 4

1.5.3 Smallholder(s) and other source

Name of

source(s) Member(s) Location

Total Area (Ha)

FFB (tonnes/year)

Supplied to Mill

FFB (tonnes/year

) %

Others - - - 37,937.98 37,937.98 13.86

TOTAL 37,937.98 37,937.98 13.86

*source: FFB received of Rama-rama POM October 2012 – September 2013

1.5.4 Product categories FFB/CPO/PK /PKO

1.6 Year of Plantings and Cycles

1.6.1 Age profile of planted palms*

Planting Year

Hectarage

RAMA-RAMA ESTATE

(Ha)

AMARTAJAYA PLASMA (Ha)

SUNGAI TAPUNG PLASMA (Ha)

TOTAL (Ha)

1991 643.06 400.00 - 1,043.06

1992 1551.81 1,666.00 - 3,217.81

1993 47.02 2,350.00 - 2,397.02

1995 - - 3,076.00 3,076.00

1996 1206.31 - 2,509.00 3,715.31

1997 383.07 - - 383.07

2001 - 10.00 - 10.00


ASSESSMENT REPORT


2002 45.13 - - 45.13

TOTAL 3,876.40 4,426.00 5,585.00 13,887.40

1.6.2 New Planting area after November 2007 - Ha

1.6.3 Planting Cycle 1stCycle Years

1.7 Approximate Tonnage Certified

1.7.1 Past Annual Claim Certified Product

FFB Production 292,500.27 Tonnes/year

CPO Production 58,500.00 Tonnes/year

Palm Kernel (PK) Production 14,625.00 Tonnes/year

Palm Kernel Oil (PKO) Production - Tonnes/year

1.7.2 Claim Certified Tonnage of FFB

Name of Estate(s)

Total Area (Ha)

Planted Area (Ha)

FFB (tonnes/year)

Yield (tonnes/ha/year)

RAMA-RAMA ESTATE 4,082.11 3,876.40 112,535.19 29

AMARTA JAYA PLASMA (scheme smallholders)

4,426.00 4,426.00 129,488.91 29

- KUD Makmur Lestari 1,000.00 1,000.00 27,859.67 28

- KUD Sibuak Jaya 1,066.00 1,066.00 31,254.69 29

- KUD Muara Mahat 914.00 914.00 28,055.17 31

- KUD Mekar Jaya 964.00 964.00 27,616.84 29

- KUD Mukti Lestari 482.00 482.00 14,702.54 31

TOTAL 8,508.11 8,302.40 242,024.10 -

* source: Actual data period October 2012 - September 2013 and based on approximate of FFB increasing in 5% than actual. ** All of FFB produced by Sungai Tapung Plasma on year 2014 will be supply to Libo POM, so that it will excluded from scope of certificate of Rama-rama POM.

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 (%)

RAMA-RAMA POM

60 242,024.10 47,581.94 19.66 13,045.10 5.39 - -

*source: FFB received of Rama-rama POM October 2012 – September 2013 and estimation of claimed product refer to 1.7.2

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 no. reg. ISCC-Reg-1126 valid until 31 January 2014, certified by GUTcert.

1.9 Time Bound Plan for Other Management Units

Management Units Address

Hectarage (Ha) *)

Time Bound Plan

Status POM Estate


ASSESSMENT REPORT


(Supply Base)

SAMSAM POM

PT. Ivomas Tunggal

Sub District of Kandis, District of Siak, Riau Province

9,717 2011 Certified

LIBO POM PT. Ivomas Tunggal



UJUNG TANJUNG POM

PT. Ivomas Tunggal



NAGA SAKTI POM

PT. Buana Wiralestari Mas

Sub District of Tapung, District of Kampar, Riau Province


KIJANG POM PT. Buana Wiralestari Mas

Sub District of Tapung hilir, District of Kampar, Riau Province


RAMARAMA POM

PT. Ramajaya Pramukti

Sub District of Tapung hilir, District of Kampar, Riau Province


INDRASAKTI POM

PT. Meganusa Intisawit

Sub District of Rakit Kulim, District of Indragiri Hulu, Riau Province

15,172.23 2013 Certified

- PT. Sawitakarya Manunggal

South Kalimantan Province 6.763 2015 2015

IVOMAS TUNGGAL operates 8 mills and 18 estates in Indonesia and has achieved RSPO certified for 7 mills and its supply base in Indonesia. IVOMAS TUNGGAL has informed the Time Bound Plan progress, MUTUAGUNG has considered that PT IVOMAS TUNGGAL 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

S-2 1. Yudwi Wisnu Rahmanto (Lead Auditor). Bachelor of Forestry with Silviculture background, University of Gadjah Mada. He worked at professional independent Certification Body as an Auditor for last 3 years and has involved in auditing activities with various certification schemes. Selected training which have been followed, such as RSPO Endorsed Lead Auditor Training Course, ISPO Auditor/Lead Auditor Course, Quality Management System (QMS) ISO 9001:2008 Auditor/Lead Auditor Course, GIS-Basic Mapping and Spatial Analysis, Timber Legality Assurance System (SVLK), Verification Organization Training C.A.F.E Practices (Starbucks) and others internal training programs. He has involved in auditing activities, such as Sustainable Forest Management by FSC FM/COC Scheme, Sustainable Palm Oil by RSPO and ISPO Scheme, Coffee And Farmer Equity (C.A.F.E Practices) Starbucks, Organic Standard (EU, NOP, JAS) for Coffee Farmers and Organic Exchange for Textile. During this audit, he assigned to verify of Legal aspect..

2. M. Syarip Lambaga (Auditor). Bachelor of Agriculture from UNHAS, Master of Science Program Post Harvest Technology of IPB, trainings have been followed among others, Lead auditor training RSPO, In House Training for ISO 9000 and 14001 Lead Auditor Training SFM as Social Expert, ISO 22000 Lead Auditor Training, ISPO Lead Auditor Training, and Malcolm Baldrige Training. Having experience in the plantation of more than 5 years, and experience as a food safety auditor for more than 5 years, team members evaluator SNI BSN Awards, and as a team member for socialization RSPO smallholder and large estates conducted by DMSI 2006-2009.

3. Nanang Mualib (Auditor). Bachelor of Forestry Science, Forest Technology Department in Bogor Agriculture Institute. He had followed training such as Performance Evaluation in Sustainable Management of Natural Production Forest on Unit Management. Sustainable Natural Production Forest Management Assessor Training Course, Training Lead Assessor ISO 9001:2001/SNI 19-9001:2008. He worked in Forest Company in 2000 – 2004 as a technical assistant of Sustainable Forest Management Implementation, Joint program with Forest Faculty Bogor Agriculture Institute and WWF Indonesia in 2006 – 2010. As a professional, he was involved in HCV social study of Sustainable Forest Management, HCV Identification in 3 palm oil plantation in Indonesia. Currently, he works as professional HCV assessor.

4. Rudi Ramdani (Auditor). Bachelor of Agriculture Majoring in Agronomy, Agriculture Faculty of Bogor Agricultural University. He has experienced more than two years as an operational staff in a private oil palm plantation company in Indonesia. He also followed training he namely: Indonesian Sustainable Palm Oil auditor, Awareness RSPO, Management System Certification (ISO 9001-2008) training and awareness OHSAS. 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).

6. Steve Mualim (Auditor). Master in Environmental and natural resources management, Bogor Agricultural University. He has worked as a freelance in several consultant in the Environmental Impact Assessment. He has followed training of Lead Auditor training ISPO, RSPO awareness, Ecological Risk Assessment, Asian Network Update and Carbon, and Climate Change Mitigation and Adaptation for Agricultural Productivity and Auditor/Lead auditor Management System Certification (ISO 9001-2008).

http://www.mutucertification.com/

mailto:[email protected]


ASSESSMENT REPORT


2.3 Assessment Methodology, Assessment Process and Locations of Assessment

2.3.1 Figure of person days to implement assessment

S-2 Number of Auditor : 6 Auditor Number of days for S-2 on site : 4 Days Number of man days for S-2 on site : 24 Mandays

2.3.2 Detail process of assessment

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

2.3.3 Lokasi Contoh Penilaian

S-2 Location 1. HGU stake in Block C31 Based on field observations, the conditions of HGU stakes were clearly readable and well maintained. There is a ditch and inspection road between HGU boundary stakes. Location 2. HGU stake in Block B38 Based on field observations, the conditions of HGU stakes were clearly readable and well maintained. There is a ditch and inspection road between HGU boundary stakes. Location 3. Riparian area in block A38 The audit team made observations related to HCV management. Information boards have been installed, prohibition to hunt, felling trees, and poison fish. The river banks have also been planted with vitivergrass, guatemala grass, and bamboo. Location 4. Harvesting in Division 2 Block C07 Observations and interviews with cultivation personnel with ripe crops harvesting criteria, harvesting techniques, the usage of PPE and employee benefits and housing facilities are available. Location 5. Spraying activity in Division 3 Block D09 Observations and interviews with spray foreman and sprayer team on company's policy regarding the chemical material application in riparian areas, periodic medical examinations, PPE usage, training on spraying technique, occupational health and safety training, first aid training, grievance mechanisms, employee benefits and wages. Location 6. Infrastructure for personnel welfare. Auditors conducting observation and interview with occupants in employees Housing in Division I related to the facilities provided by company such as housing types G1 and G2, worship venue (mosques), Child Care (TPA), education infrastructure (early childhood, kindergarten and Smart House), clean water supply, and generators hut. Location 7. Hazardous Warehouse Company has installed hazardous symbols around plantation area. There is a Material Safety Data Sheet (MSDS) for chemical material in the warehouse. Location 8. Employee housing in division 1 The audit team conducting observation and interview with personnel’s wife regarding the facility, waste management, grievance mechanism and observations on neighborhood conditions. Based on interview, company has to provide adequate facilities for surrounding personnel such as daycare facilities and religious facilities.


ASSESSMENT REPORT


Location 9. Landfill (Block D01) The audit team conducting observation related to landfill’s activity. Based on observations, the waste disposal activity has been conducted in accordance with procedures established by the company, such as waste being periodically collected and transported to landfill. Location 10. Empty fruit application (Block D06) The audit team conducting observations related to the utilization of solid waste such as empty fruit bunch in plantation. Based on observations, the empty fruit bunch is quite effective to reduce mill’s solid waste as well as reducing the fertilizer usage in plantation. Location 11. Land application (Block B13) The audit team conducting observations related to liquid waste application in plantation. Based on observation, the land application activity has been conducted in accordance with procedure by establish flat bed for land application and there is a periodic monitoring. Location 12. Workshop Safety signboard is available, the first aid box equipment is available, workshop equipment is in a good order, based on interview with personnel and welder, they had competency certificate and has a medical examination. Location 13. Fire Extinguisher team Based on observation, the infrastructure for fire is available in a good condition. There is also a fire emergency response teams. Location 14. Smallholders Union Regular meetings have been conducted once every 3 months and up to now there is no conflict occurs between the company and personnel. Location 15. Rama Sejahtera personnel’s cooperative Cooperative Employees Welfare Rama. The existence of the cooperative regarded very helpful on economic matter of cooperative member Location 16. The processing in Mill Observations related to FFB processing into crude palm oil (CPO), the implementation of occupational health and safety, fire emergency response vehicle in mill, and first aid kits Location 17. Supporting facilities Observation onsupporting facilities such as workshop, warehouse material, hazardous warehouse, Chemical warehouse, Water Treatment Plant. Location 18. Wastewater Management Installation Observation on mill’s wastewater management and IPAL conditions were well maintained and there is no leaks and runoff. Location 19. Sari Galuh Village Based on field visit, the communication has been well established between company and society. There is no land conflict occurs between communities with the company. Location 20. Block G11 Margo Rukun smallholder group (KUD Makmur Lestari) - AMARTA JAYA PLASMA. Field observations on the implementation of the RSPO, cultivation techniques, waste management, interviews with several members of smallholder. Location 21. Block E11 Margo Rukun smallholder group (KUD Makmur Lestari) - AMARTA JAYA PLASMA Block E11 Margo Pillars Farmers Group (KUD Makmur Lestari) - AMARTA JAYA PLASMA. Field observation related to the management of HCV and information board locations around Kuo River. Location 22. KUD Mekar Jaya - AMARTA JAYA PLASMA Field observations on the implementation of the RSPO, cultivation techniques, waste management, interviews with several members of smallholder. Location 23. Timbul Jaya smallholder group (KUD Tunas Makmur) – SUNGAI TAPUNG PLASMA Field observations on the implementation of the RSPO, cultivation techniques, waste management, interviews with several members of smallholder. Location 24. Block C14, Berdikari smallholder group (KUD Karya Tani) - SUNGAI TAPUNG PLASMA Field observations on the implementation of the RSPO, cultivation techniques, waste management, HCV-related knowledge, interviews with several members of smallholder

2.4 Stakeholder Consultation and List of Stakeholders Contacted


ASSESSMENT REPORT


2.4.1 Stakeholder Consultation and List of Stakeholders Contacted

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

2.4.2 List of stakeholder contacted

Please find appendix 1

2.5 Determining Next Visiting

The next visit (S-3) will be determined one year after this S-2.(October 2014)


ASSESSMENT REPORT


3.0. ASSESSMENT RESULT 3.1. Summary of Assessment Report of the RSPO Certification MUTUAGUNG LESTARI has conducted an assessment of RAMA-RAMA POM – PT. RAMAJAYA PRAMUKTI operation consisting of one (1) Mill, one (1) Own Estate, and 2 (two) scheme smallholders namely Amarta Jaya Plasma and Sungai Tapung Plasma. During the assessment (S-2) carried out, all indicators of the P&C standards, Scheme smallholders and Supply Chain Standards were Complied; and there only five (5) opportunity (s) for improvement were identified. MUTUAGUNG LESTARI found that RAMA-RAMA POM – PT RAMAJAYA PRAMUKTI 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 dan untuk Scheme Smallholders, October 2009. Therefore MUTUAGUNG LESTARI Recommends RSPO Certification of compliance is continued.

Ref Std. VERIFICATION RESULT of MUTU-Certification

PRINCIPLE #1 COMMITMENT TO TRANSPARENCY

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

Consistent with the S-1 where the company has an SOP related to the provision of information that is stated in the Communication and Consultation SOP (SOP/SPO/SMART/LH-19), The SOP stated that responses to information requests is one month after the letter was received. The entire recording on information request been recorded in the register book "Communication Book" while record on the provision of information recorded in the register book of “Information Book". In 2013 there are 22 types of informing letters from related parties, for instance; Quarterly Report P2 K3 for period 3-year 2013 which submitted on October 11th, 2013 to the Department of Social Welfare and Labor of Kampar district in accordance with BA handover report by officers. The entire information request such as requests for grant from the parties have been recorded, for instance, assistance/ aid request letter from Head of committee on Head of village Cup SH Terate in Riau Province (Petapahan Village - Tapung) No. 04/Pemdes/Pth-TP/2013 on February 5th, 2013 which was then followed up by the assistance/ aid delivery. Minutes for the assistance/ aid delivery is on March 5th, 2013

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.

Company has determined types of documents that are accessible for related stakeholder. There are 13 types of information, such as: number of personnel and personnel’s basic salary list, list of personnel and TIN and information related to tax calculations, payment of local taxes/ levies, the document of EIA, RKL/ RPL and Licensed LA, deed of establishment and changes in the company, data about area, production and fertilizer application, and proof of land ownership (HGU, HGB etc.). Shelf life of documents related to the RSPO documents is 5 years according to SOP of Control and Documents shelf life period Number (SOP/SPO/SMART/LH-02) dated July 1st, 2010 except for documents related to the licensing, regulation and corporate legal documents stored as long as the licensing documents and legal regulations still applicable.


ASSESSMENT REPORT



PRINCIPLE #2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

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

Similar with previous audit reports, PT. RJP has had a documented mechanism in order to identify, implement and evaluate compliance on applicable laws and regulations related to the management of mill and oil palm plantations through the procedures of regulation and other requirements (SOP/SPO/SMART/LH-03) published by the ENVD (Department of Environment) in July 1st, 2010. PT. RJP has identified relevant laws and regulations on palm oil mill and plantation, drafting matrix for each article then classify into rules groups as follows: set of regulations related to occupational healt and safety (44 related regulations), set of Regulations related to Employment (17 related regulations) set of Regulations related to Licensing (11 related regulations) set of Regulations related to HCV (7 related regulations) set of Regulations related to Employment (23 related regulations)

The above rules have been applied, such as: Rugulation from ministry of manpower and transmigration No.Per.08/MEN/VII/2010 dated July 6th, 2010 article 7

which has been implemented by the company. Based on interviews with harvesting and spraying personnel, the company has had provided and the PPE as well as its management. As stated on Article 7.

The Implementation of Law. 3 of 1992 on Social Security Workers Article 3, 6, 10. 12 and 14, such as personnel salary list, list of personnel (Social Security participation) etc.

Minister of Manpower Regulation No. 1 of 1999 Article 13 and 15, as a reference for regional minimum wages that also refers to Governor Decision letter on regional minimum wages.

Government Regulation no. 7 of 1999 on the preservation of wildlife and Flora, The appendix of type of Protected Animals is available. Company has HCV Identification document, HCV Management and Monitoring.

In order to ensure consistency and the updated of applicable laws and regulations, PT. RJP has evaluated the set of regulation every 6 months. Last evaluation was conducted in December 2012 and July 2013. Any changes and or renewal of the regulation by the government, PT RJP will adjust the operational activities in order to comply the regulation.


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

PT. RJP has had a complete land acquisition documents and land use title as reported in the previous audit. These documents are well stored in company’s Legal Department office in Pekanbaru. Based on document review, PT RJP obtains land use title and or building use title in 2004. Interviews with the Legal Department personnel mentioned that company has not made any area expansion. This was confirmed by interviews with the Head of Supervision Department of Plantation agency Kampar District and Karo of Land agency of Kampar district which informed that since acquiring the land use title and/ or building use title, PT RJP has never submitted request for area expansion. Thus there is no addition of new documents related to area expansion. PT RJP has made the demarcation units area boundaries, manage and maintain boundary signs in the field. In managing and maintaining this boundary signs, company has had a program and the realization of the boundary signs maintenance as stated in the checklist (monitoring) of boundary signs that are done every month. Boundary signs checklist contains information such as location, condition and boundary signs maintenance. The checklist document is available in field until September 2013. Based on field visits, auditor found boundary signs in a good condition and well maintained, for instance HGU stake 63.


ASSESSMENT REPORT


According to the head of village in surrounding plantation area, until now there have no conflict and or land claims from community toward PT. RJP area.


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.

Similar to previous audit findings, there are no traditional rights within the area of PT RJP. Based on the information from PT RJP management and interview with head of village/ community leaders in Sekijang village and Koto aman as a Native village, stated that there is no traditional right of ownership (Indigenous Land/ Customary) within the concession area of PT RJP.


PRINCIPLE #3 COMMITMENT TO LONG-TERM ECONOMIC AND FINANCIAL VIABILITY

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

To achieve long term economic and financial security, PT RJP has had working plan documents in a form of Work Plan Period 2013-2015. The document has received approval from the top management. Document of work plan management contains the production forecasts, forecasts for Oil Extraction Rate (OER), FFB cost (Idr / kg FFB), Mill cost (Idr / kg CPO), palm products (Idr/ kg palm products), forecast for CPO price, PKO, fresh fruit bunch in Plasma plantation, Estimated yield of CPO and PK, Exchange rate and other financial parameters.

Meanwhile for 5 years replanting program has not been planned yet, because some considerations according to company policy (SMA/MCAR/01/05-07) which is an indicator for replanting based on yield study/ ha (<14 tones FFB / ha), age of plant (> 25 years), height of plant (> 13 meters) and the density of plants per hectare (<100 crop/ ha).

Rama-rama Estate: Yield (24 tones of FFB/ Ha); age of plant (22 years old - 1991); average height of plant (12 meters); density of plants (136 trees/ Ha). In general, replanting has been planned in 2019 and there is annual study on social, environmental, and technical aspect.


PRINCIPLE #4 USE OF APPROPRIATE BEST PRACTICES BY GROWERS AND MILLERS

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

An operational procedure for technical plantation refers to Management Committee for Agronomy and Research (MCAR 2007) for land preparation stages (Land Clearing) to harvest and transport. Meanwhile, technical guidelines for palm oil processing still refers to the Management Committee for Mill and Development (MCMD 2010) which contains the processing stages ranging from FFB to Product Dispatch. The entire implementations of plantation activities and mill have consistently done in accordance with guidelines.

Operational inspection activities for plantation and mill have been routinely performed at least once a year in the form of:

Inspection by the Department of Agronomy Audit & Advisory (AAA), which covering the harvesting activity, maintenance, heavy equipment, clinic, etc. There are sample of AAA report for Kampar Rama-rama plantation dated March 28th and April 1st, 2013 with 6 findings and everything have a further follow up action.

Mill Audit & Advisory (MAA), which covering the entire mill operational assessment. There is an example for MAA report dated April 26th – 30th, 2013. The entire findings have a further action by the management unit.

Regularly every month, the entire plantation and mill operational activity and achievement have been monitored and evaluated against the management targets, both in terms of production and costs, in a monthly plantation and mill’s reports. There is sample of agronomic monthly reports for Rama-rama plantation in September 2013that contains information about the FFB production report, plant maintenance activities (fertilizing, spraying, pest, etc), as well as Rama-rama mill’s monthly report for period September 2013 which contain information on total accepted FFB, processed, processing capacities, working hours, working days, CPO extraction %, PKO extraction %, etc.


ASSESSMENT REPORT


During field observation on Harvesting activity at Division 2 Block C07 and Spraying at Divisi 3 Block D09, it was clear that all procedures of agronomy practices has been well implemented.


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

Company has set work instructions related to leaf sampling and soil sample activities based on IK/SMART/MCAR/IX/TA-PPK/05- LSU (leaf sample activity) IK/SMART/MCAR/IX/TA-PPK/06- SSU (soil sample activity).

Company has conducted periodically visual analysis of leaves each year and soil analysis every 5 years based on group of age of 3, 8, 13, 18 and 23. 1 block samples LSU/ SSU ia represents 60 Ha. LSU has been conducted together with the plantation visual observations every year on the first semester

Based on document review, the soil test results on SSU RRME Commercial based on Ref No. 003/SSU/Lab-Smartri/I/2010 dated January 20th, 2010, the tested parameters were (Ka, texture, pH, organic C, total N, C / N, Cad, available P, CEC, Ca, Mg, K, Na Saturation, and al-H Exchange Rate). Number of samples is 703.

Leaf testing sample Ref No. 092/Leaf/Lab-Smartri/III/2013 dated March 13rd, 2013 (Ka, NPK Mg Ca B) as many as 52 samples.

Based on leaf analysis result, visual observation on plantation and soil analysis, SMART Researchh Institute will issue a fertilizer recommendation for PT. RJP and PT.RJP will implement and realize the fertilization recommendation in accordance with predetermined schedule. Realization on chemical fertilization until September 2013 was 70% from the planned program. In addition to the use of chemical fertilizers, PT. RJP also conducting the empty fruit bunch fertilization using (Empty Bunch) and liquid waste. Dose of empty fruit bunch is 60 ton/ha/2tahun and liquid waste is 375 m3/ha. Realization of empty fruit bunch application until September 2013 was 70% and wastewater applications is 75% from the planned program.


4.3 Practices minimize and control erosion and degradation of soils.

Company already has soil maps for each plantation that integrated with land suitability class document. The document contained information on land suitability class, slope, texture, limiting factors, broad and soil classification. The soil map is also completed with legend with a 1: 40,000 scale. Based on field visits in Block A 38 indicates that company has conducting plantation management for high slope area, such as;

a. Land covers plant maintenance (Neprolephis) in the area of TM and performs selective spray (circle) and harvest path.

b. Establishing frond with an “L Shape” method as an effort to reduce “run off” c. Planting retaining erosion vegetation (such as Vertier grass, Guatemala grass, bamboo) in the river mouth and the

side of the road. For area that being identified as a peat area will have a “water management” meanwhile management for land areas tend to be sandy or identified as an area that has a low content of organic material will being applied with the empty fruit bunch and ground cover crop (Neprolephis). Based on document review and field visit, there is a peat area within RRME that covers an area of 133.07 ha with a location such as spots around the Tapung Kiri River and anak sungai Tapung kiri (around Block D 13). Company has identified the area and the result shows that the peat layer thickness ranging from 10-45 cm with a flat rate - slope and has a Saprist texture and sandy clay texture underneath. Company has had peat lands Water Management Plan stated in Appendix 2 of program document and Peat land Management Actualization Document based on survey in 2011, including below efforts;

a. Establishment of Drainage ditch with a custom-tailored number. b. Establishing the insulating water (dam) which completed with water gate on main and secondary trenches for open

and close the lid so that water levels can be maintained on 50 to 70 cm below the peat surface. c. Establish the monitoring wells (piezometer) in the middle of peat blocks.


ASSESSMENT REPORT


d. The observation on water level for peat area conducted using the piezometer with monitoring rotation every week or 2 weeks.

As an effort to reduce the erosion and soil degradation caused from the water flow on the plantation transportation road, company has had plan and Ambulatory Monitoring Manual document outlining the plan and realization of road manual maintenance per each division, for instance; Division I until the September 2013 have done the ambulatory manual covering an area of 710.49 ha. The Implementation of road manual maintenance has been planned every 4 months.


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

Company has made efforts to protect waterways and wetlands including riparian areas through management policy that stated in SOP for riparian protection and SOP for riparian areas management. Based on field observations, the implementation actions that has been done by company, such as:

Planting erosion control plants in riparian areas with vetiver and guatemala grass

manual maintenance without chemical material in plantation located in riparian areas

Not perform fertilizing on oil palm crop that bordering with riparian area. Based on RKL and RPL documents on 1st half of 2013, Company has made efforts to manage and protect the quality of surface water. The water protection management taken by company such as:

WWTP to manage liquid waste in order not to contaminate environments and water bodies.

Utilizing mill processed wastewater in the WWTP to the plantation area as a liquid fertilizer after fulfilling the requirements and do not dispose liquid waste into the river.

Monitor the quality of groundwater on monitoring wells in the area of wastewater utilization (LA), before utilized the liquid waste

Using fertilizers and pesticides in accordance with regulation Based on documents review, there are some surface water flows within the plantation area, such as Tapung river, Patapahan river, Kuok river. The company has conducted monitoring and examination on surface water quality regularly every 2 times a year. The results from surface water quality examination, groundwater 1st half of 2013, as well as monitoring of BOD liquid waste in mill generally show the following results:

Based on laboratory test results, the overall water surface quality in Kuok River is quite good. Only the sulfur parameter that exceeded the quality standard (sulfur> 0002 mg / l) both in the inlet and outlet of Kuok River. Company has evaluated the test results related to the parameters that have not met the quality standards and take corrective action to prevent it. The action taken by the company is cultivated the vertifer grass on the river banks.

Company also conducts water quality testing for monitoring wells, test results for 1st half of 2013 shows that there is no test parameter that exceed the quality standards, for instance (BOD = 2885, pH = 7.35).

Regarding the mill’s wastewater management, company also continuously conducting the regular liquid waste quality every month. Based on laboratory testing for period of July to September 2013, the liquid waste parameter like BOD is not exceeded the quality standard (July BOD = 601, August BOD = 2991, September BOD = 4985)

The surface water flow within plantation was utilized by company for FFB processing. Company has conducted the monitoring on water usage for processing activity in a regular basis, every day. Based on the analysis of water usage efficiency for Ramarama Mill, during the period of January until September 2013 Ramarama mill has a high water usage efficiency and still lower compare to company’s budget which is an average of 1.06 m3/ton FFB.

During field observation at workers housing on Division I RRME, surface and ground water which used by workers are well maintained.


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


ASSESSMENT REPORT


In order to control pests and diseases, PT RJP has had: Early Warning System Program through the detection of oil palm leaf-eaters caterpillars every 2 months, Rats

Census every 3 months and owls checks every month. Host plant maintenance program, like Turnera and Antigenon. Training program for personnel who perform integrated pest management: such as training on May 18th, 2013.

Training is conducted on a regular basis every year. PT RJP has conducted the recapitulation on monitoring record for PHT area and training for PHT personnel, as follows: Monitoring record (detection) UPDKS performed every 2 months. Critical limit is 5 caterpillars per midrib. The

UPDKS attack that passed a critical threshold is not found yet, so chemical control is not allowed. Record on rat census every 3 months. The average rate of rat attack ranged from 1.96 to 2.70% or remained below

the critical limit of 5%. In order to improve the knowledge on integrated pests, diseases and weeds control, PT. RJP has developed training

programs on a regular basis. In 2013, training for integrated pests control, diseases and weeds was conducted on May 18th, 2013, followed by 31 foremens. Training conducted in Division III of RRME office. There are photos of training activities both in the classroom and in the field as well as training materials such as integrated pest management for Fire caterpillars, IPM for Gonoderma, Mass Breeding for UPDKS Predator, IPM for Rat and Integrated Weed Control

There is a record for pesticide toxicities which conducted every month in 2013, for instance: Monitoring on pesticide toxicity (active material/ LD50 material per tones of FFB in September 13 for pesticides types

Erkafuron 20WG is 0.000000131677 liters/ tones of FFB Monitoring of pesticide toxicity (active material/LD50 material per tones of FFB in July 2013 for pesticides types

GARLON 480 EC is equal to 0.000000004840 liters / tones of FFB Monitoring of pesticide toxicity (active material /LD50 material per tones of FFB in May 2013 for pesticides types

Rolixone 276 SL is equal to 0.000130871392 liters / tones of FFB Monitoring of pesticide toxicity (active material/ LD50) material per tones of FFB in January 2013 for pesticides types

Roll Up 480 SL is equal to 0.000001625382 liters/ tones of FFB


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

PT. RJP has a list of used pesticides and updated if there is an addition or reduction on type of used pesticide. The list of pesticides used in 2013 as follows:

Roll Up 480 SL; with an active Isopropilamina Glyphosate RI. 2133/4-2009/T.

Rolixone 276 SL. with an Active Ingredients: Paraquat diclorida. RI. 2467/5-2006/T.

Starane 290 EC. with an Active Ingredients: Fluroxypyr methylhepty ester. RI. 3155/3-2008/T.

Erkafuron 20 WG. with an Active Ingredients: Methyl Metsulfuron 20%. RI. 2450/5-2006/T.

Garlon 670 EC. with an active ingredient trichlopyr 480 g / Lt. RI.695/9-2008/T. The entire used pesticide is registered on licensing Center Department and investation department of Agriculture of republic of Indonesia in 2010. Records on pesticide usage RRME as follows: • Erkafuron 20 WG - Methyl Metsulfuron (Kg), Dose: 0:02 Kg / Ha • GARLON 630 EC - trichlopyr (Liter), Dose 0:07 Lt/ Ha • Rolixone 276 SL - Paraquat dichloride (Liter), Dose 12:33 Liter / ha • Roll Up 480 SL - Isopropilamina glyphosate (Liter), Dose: 0:20 Liter / ha • Starane 290 EC - Fluroxypyr methylhepty ester (Liter), Dose: 0:26 Liter / ha


ASSESSMENT REPORT


Meanwhile the trend of paraquat usage in the last 3 years:

Medical examination for cholinesterase for spray workers conducted by a third party: Thamrin Laboratory Clinical in Pekanbaru on August 20th, 2013. Medical examination with a normal range of cholinesterase is available. Observations on spraying activities in Division 3 Block D09 with spray personnel that consist of 3 women and 2 men. Based on interviews with spray personnel, there is no pregnant or lactating female spray personnel. The company has been consistently monitoring and examined to ensure that there is no pregnant or lactating female personnel works as spray operator. Company has SOP for the handling of pesticide waste with SOP numbers SPO/SMART/LH-09 SOPs that govern the management of used agrochemical packaging. Management of used pesticide package is done by washing before storing in a central warehouse of Rama Rama plantation for later returned to the supplier. Company has a partnership with agrochemical suppliers; PT Rolimex Pekanbaru for the return of used agrochemicals packaging.


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

Implementation evidence that the company has implemented the guiding committee for occupational health and safety, PT Ramajaya Pramukti - Rama Rama mill has implemented and certified guiding committee for occupational health and safety (No. Reg.0121/SUCOFINDO/2010) dated May 4th, 2010) based on Ministry of Manpower and Transmigration decision No.83 in 2010. Based on field observations in Rama Rama Mill and plantation, the company has consistently apply the guiding committee for occupational health and safety in accordance with applicable procedures and regulations, including compliance with first aid equipment such as the use of PPE for personnel in accordance with the hazard risk of the job, providing the first aid kits in mill and plantation, infrastructure for fire prevention is in ready to use. the guiding committee for occupational health and safety in PT RJP has done it’s responsibility and function as well as regularly conducting monthly meeting to discuss the first aid issue. Meanwhile the guiding committee for occupational health and safety has been regularly reported their activity every 3 months to social and manpower agency of Kampar district.

- Decision letter from head of social and manpower agency of Kampar districtNo. KPTS.700/DSTK-PHI/2013/16 guiding committee for occupational health and safety PT RJP - Rama Rama mill that has been endorsed on July 29th, 2013. Secretary of guiding committee for occupational health and safetyhas certified as first aid expert on behalf of M. Muhariadi with SKP No. KEP.973/M/DJPPK/III/2012 dated March 22nd, 2012 which valid for 3-year.

- Decision letter from head of social and manpower agency of Kampar district No KPTS.700/DSTK-PHI/2013/11 P2K3 PT RJP - Rama Rama plantation that has been endorsed on July 29th, 2013. Secretary of guiding committee for occupational health and safety has certified as first aid expert on behalf of Wildam Mayoga wih SKP No. KEP.2728/M/DJPPK/XII/2010 dated December 10th, 2010 which valid for 3-year.

Company has been consistently registering all SKU (permanent workers) and BHL (temporary workers) personnel in the Social Security program. For SKUs personnel; 3 programs (work accident insurance, life insurance and retirement benefits)

1,835.56

1,431.211,330.61

1,254.70

500.00

1,000.00

1,500.00

2,000.00

Year 2010 Year 2011 Year 2012 Year 2013*

Trend of Paraquat used RRME (Liter)


ASSESSMENT REPORT


and for BHL personnel; 2 programs (work accident insurance and death benefits). Periodic medical examinationfor high risk personnel such as cholinesterase examinations for workers who work with chemical material, as well as audiometric for personnel who work in the area of noise that exceeds the NAB standard. The examination is conducted every year by a third party (Thamrin Clinical Laboratory Pekanbaru). For the period of 2013 yhe examination conducted on August 20th, 2013. From the examination of cholinesterase, showed levels of cholinesterase in the blood of personnel who work with chemical material is within the normal limits. Meanwhile for the audiometric examination, 3 mill’s personnel have a hearing problem. Based on the physician’s recommendation and further examination to the ENT specialist Syafira hospital in Pekanbaru dated October 28th, 2013, the examination showed only an ear infections and only need a treatment. Company has drafted a risk analysis documents; ISBPR (Hazard Source Identification, Assessment, and Risk Management) for every routine and non-routine work activity and process in each unit of mill and plantation. Preparation of documents created by the flow as follows: all activities and work processes in mill and plantation which identified has a potential hazard based on sources/ events and impacts further need an assessment to determined the level of risk and risk control such as elimination, substitution, engineering, administrative, or the PPE usage. Training on occupational health and safety program has been conducted for all personnel on a regular basis, occupational health and safety training schedules is available in each unit of mill and plantation, for instance training and simulation on fire prevention on June 8th, 2013 which is a joint unit training with attendees RC/ PC, EM / FM, SPO5 Coordinator, SPO Region, Damkar agency, Physician and team, PIC SPO units, PIC of occupational health and safety units, and Emergency team of Kampar District. PT RJP consistently implemented the preparedness and emergency response through the establishment of the Emergency Response Team at Rama Rama mill and plantation, as well as the provision of infrastructure and facilities for instance the fire-fighting tools are in good condition and ready to use. Based on field observations in Rama Rama mill, fire extinguisher and hydrant are in a ready to use condition and monitoring has been performed routinely every month by the safety officer. Observation was also made in Rama Rama plantation, firefighting equipment such as water tank is equipped with a ready to use pump machine, the nozzle and the preserved condition hose inside the box is in a good condition. Based on field observations, company has provided the first aid equipment in each unit of work, for instance in Rama Rama mill there is a first aid box located in mill’s office. Hazardous waste landfill is available in processing office. Foreman of harvest Division 2 Block C07 also equipped with first aid equipment when working in the field as a first aid material when accident occur in workplace. Foremen have been trained on first aid at May 10th, 2013 which delivered by company’s physician. Company has consistently documented the record of occupational accidents in the form of Annual Recapitulation Report of FR (Frequency Rate) and SR (Severity Rate), based on accident’s monitoring in Rama-rama mill, there was no occupational accidents for period from January to September 2013. Meanwhile in rama-rama plantation from January to September 2013, there were 332 cases with a total number of working days lost amount 97 days.


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

Identification on training needs matrix for 2013 is available for personnel in each working unit, such as: • Rama Rama mill, with type of training including training on first aid Hiperkes, Rolimex, crane hoist, Positive Action, first aid

Internal, and Damkar. • Rama Rama Plantation, with type of training including training on spray by pesticide commission, first aid, damkar and SIO

for tractor operator.

As on evidence of the implementation of the training, company made an official minutes of mill and plantation personnel training which has been well documented, for instance limited pesticide training from pesticide committee in Ujung Tanjung training center (UTNZ) which was attended by foreman and spray personnel in Rama-rama plantation on March 28th, 2013,


ASSESSMENT REPORT


operator hoist crane training on April 11st -12nd, 2013.


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.

During the Surveillance-2 assessment (ASA-2), there was neither replanting activities nor changes in the scope of operations within plantation and Mill area (Rama-rama mill’s capacity never been changed from the capacity stated in environment analysis document, which is 60 Ton FFB / hour).

Environmental Impact Assessment (EIA) Documents which has been owned by company as agreed by the Minister of Agriculture, through its letter No. RC.220/497/B/III/1994 dated March 18th, 1994 for Palm Oil (PIR TRANS) and mill in Siak Hulu sub District, Kampar District, Riau Province. The scope of the EIA document is a processing mill with a capacity of 60 tons FFB/hours and oil palm plantations over 10,000 hectares in an area of 15 760 ha.

Environmental Impact Assessment (EIA) Document was prepared in 1993 by collaboration between the company with licensed organizers. Environmental management and monitoring parameters consist of:

Increasing the rate of erosion

Acidification of soil and peat fires

Water quality degradation

Disturbance toward and by elephant

Social unrest because of land conflict and sustainability of agriculture business.

Provision of employment and increasing community’s income

Company also has a document of environmental management activities for kernel processing mill with a capacity of 150 tons/day which was made in 2011. This document has received an approval from the Head of BLH Kampar district Mo: Kpts/BLH/Dok/2011/133 on September 27th, 2011

Kernel Crushing Plan Development was established in integrated with mill so by the time the construction of KCP there is no land acquisition. Based on this environmental document, the environmental impacts that need to be monitored and managed by company are:

Impairing air quality

Increasing noise

Disruption on surface water quality

Increasing labor utilization

Increasing business opportunities

Occupational Health and Safety

Disruption of traffic

In accordance with applicable regulations, company has an obligation to report the results of environmental management to local government agencies every 6 months in the form of monitoring and environmental management report. In addition, company also asked to report mill’s liquid waste monitoring and management every 3 months and the results of liquid waste monitoring for land application every 3 months.

Based on the results of the assessment, company has reported the environmental monitoring and management periodically. From the examination of those documents can be shown the document reports as follows: Monitoring Implementation Report on Environmental Management Plan (RKL) and Environmental Monitoring Plan (RPL) for the first half of 2013 for Ramarama mill and Estate, the documents has been submitted to the BLH of Kampar District dated September 2nd, 2013 (based on receipt and stamp of the Environment Agency).



ASSESSMENT REPORT


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.

Company has made the identification of HCV that conducted by company's internal team. HCV Documents identified the presence of protected wildlife such as Cekakak Thicket (Halcyon smyrnensis) and root Tigers (Felis bengalensis).

Identification records on protected species was refer to HCV Identification document for PT RJP (2010) which prepared by the internal team of company’s partner that have gained approval for RSPO HCV assessor and endorsed in February 2011. From the identification, there was a HCV1, 1.2 and 4.1 with KBKT total area of 380,12 Ha for Rama-rama estate. Field identification conducted on January 2013. From the identification, there were protected wildlife based on Government Regulation No. 7 of 1999 and Appendix II CITES such as root Tigers (Felis bengalensis), while Cekakak Thicket (Halcyon smyrnensis) species only protected by Government Regulation No. 7 of 1999. There was no wildlife protected by IUCN Red list being identified within PT Ramajaya Pramukti area. All the monitoring activities and HCV management has been monitored by trained and specialized personnel, for instance in

Rama-Rama estate, the responsible personnel has been appointed and trained in monitoring HCV.


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

Company has identified the source of waste and its management plan for plantation and mill’s operations, for instance as shown in the following table:

Activity Impact Management

Spraying Weeds

Water and soil pollution

Perform work according to Work Instructions, ensure spray equipments are in a good condition and not leaking


Placed in the former laundry waste storage warehouse so it can be reused

Fertilization Water Pollution Placed in special warehouse for pesticide

Land application


Soil quality analysis every 6 months


River water quality analysis every 6 months


Selecting the LA location which is away from housing

Empty fruit bunch applicatio

Water and smell pollution

Selecting location for empty fruit bunch that away from housing location

FFB Transportation


Oil leaks were collected in hazardous material land fill

Air Pollution Road watering the according to the conditions

Workshop Air Pollution Emissions Quality testing every 6 months

Vehicle Maintenance


Placed on hazardous waste warehouse

Clinic Soil pollution Handover to a third party to be destroyed

Soil pollution Handover to a third party to be destroyed

Household waste


Hoarding at final landfill

Hazardous Waste


ASSESSMENT REPORT


Company has identified the type of generated hazardous waste, including: used Aki, used oil, filters used filter, used light, hazardous packaging, and cloth rags. Especially for hazardous waste, company has had a mechanism stated in SOP for hazardous waste management (SOP/SPO/SMART/LH-18). Hazardous waste such as used oil, used filters, and used light bulb kept in hazardous waste landfill which had an official license in Kijang plantation and mill, then will be transported by PT. Primanru Jaya - the hazardous waste collector - who has a license from the Ministry of Environment.

Medical Waste Company has a partnership with Bangkinang hospitals for medical waste management and disposal. Letter of agreement between Bangkinang hospitals with PT RJP on February 15th, 2010 is available.

Pesticide containers waste

Management for used pesticide containers is done by washing before storing in Kijang plantation central warehouse and further to be returned to the supplier (PT Rolimex Pekanbaru) to transport these agrochemical packages. Company stored hazardous waste in a licensed temporary warehouse. Record on hazardous waste management has been documented, as shown as follows: Rama-Rama Plantation (period from July to September 2013)

Used light until September 2013 amount 6 pieces

Used Cloth rags until September 2013 amount 7.5 kg

Used filters former until September 2013 amount 32 pieces

Used oil until September 2013 amount 255 liters

Used Accu until September 2013 amount 3 pieces Rama-Rama Mill (period from July to September 2013)

Used light until September 2013 amount 4 pieces

Used Cloth rags until September 2013 amount 35 kg

Used filters former until September 2013 amount 29 pieces

Used oil until September 2013 amount 235 liter

Used Accu until September 2013 amount 2 pieces Based on documents review and field observation, Company has performed a good hazardous waste management. There was no hazardous waste been stored exceeding the shelf life period (180 days). Company also reported hazardous waste balance sheet and logbook of each hazardous waste landfill to the environment body of Kampar District regularly (every 3 months). Third quarter report of rama-rama mill and plantation (July to September 2013) for hazardous waste dated October 21st, 2013 has been reported to environment agency of Kampar district.


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

In an effort to reduce emissions from fossil fuel usage, company utilizes the renewable energy such as shell and fiber. Company has been providing the renewable energy monitoring and the efficiency analysis. Based in the efficiency analysis of renewable energy for period 2009-2013, shows following result:

The energy efficiency from shell and fibers usage in the period of 2009-2013 at Ramarama mill remained stable with an average over the last 5 years was 929.48 MJ/ tones of FFB for shells and 1,149.98 MJ/ tones of FFB for fiber usage.

During the period of 2009-2013, company has managed to save the substitution of diesel with shell and fiber. This shown by declining tendency on diesel usage from year to year.


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.


ASSESSMENT REPORT


Until the evaluation, there is no replanting activity undertaken by the company, company’s management is planed to undertake replanting in 2018. All replanting activity and clearing in the future will refer to the Management Committee of Agronomy and Research (MCAR) in 2012. MCAR consist of procedure for new land clearance (SOP / SMART / MCAR / IV / TA-PLB / Chapter IV) which outlines the process of land clearing without burning (Systems Chemical, felling, stacking and Mechanical). Similar with chapter VI (replanting SOP) Document No. SOP / SMART / MCAR / VI / TA-RPL explain procedures of land clearance without burning on replanting area but with a mechanical system (Tumbles, Unloading, Chopping, Stacking). Based on field visit, there is no land fires evidence on plantation area. Company has established emergency response procedures in a form of SOP on plantation fire Handling (SOP / CPR / KBR) that endorsed on February 5 th, 2010. Rama-Rama Emergency Response Team was endorsed by the Department of Social Welfare and Labor of Kampar district on September 10th, 2012 with the composition of the structure such as Chairman, Executive Chairman, Secretary, Assistant General, Fire Team, Medical Team, and Safety Team, remover Team, Liaison Team, and Evacuation Team. Facilities and infrastructure for emergency response of fire extinguishers have been provided, for instance, water tank, pump, hose and nozzle.


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

Identification on air pollution source in the Rama-Rama Mill conducted based on SOP of Emissions and NoiseC ontrol (Document No. SOP / CPR / EMS endorsement dated February 5th, 2010). At point 6.1) sources of air pollution that can be identified are similar to environmental aspects and first aid aspects identification. Sources of air pollution based on a list of environmental aspects in the Rama-Rama Mill, such as:

- Engine Room: exhaust emissions from generators, noise

- Boiler: emissions from the chimney, the noise

- Dispatch PK: emissions from trucks that transporting the kernel

- Dispatch CPO: emissions from trucks that transporting CPO, noise

- Workshop: smoke emissions from machinery in mill (generators and boilers), the noise

- Final effluent: the odor from methane gas

- Laboratory: the odor from condensate

Air quality Company has been testing the air quality regularly every 2 times a year and reported the test results on RKL / RPL report. The test results on air quality for semester 1 (June 2013) indicates that all test parameters for air emission and ambient are not exceeded the quality standards such as air emission parameters on the generator 1, NOX = 186.3 mg/m3 and SO2 = 21:14 mg / m3, with the exception of noise parameters where some stations have the noise parameters that exceeds the quality standard, such as softener station (92.3 db) and boiler (87.6 db). Related to parameters that exceed the quality standards, company has made prevention and management efforts by requiring all personnel to use ear plug and ear muff at stations with high noise levels. Mill’s Effluent (POME) All liquid waste processed first on WWTP. Before utilized, liquid waste is processed to achieve the utilization quality standard for oil palm plantations, that pH 5-9 and BOD ≤ 5000 mg / l. WWTP management undertaken by the company uses biological systems through the anaerobic process, facultative, aerobic, and control ponds. Waste water from the WWTP outlet pond was pumped and flowed to the specified location as the waste water utilization location on the ground. The liquid water produced by the mill will re-utilize to the soil/land in accordance with environment agency of Kampar district permit No. KPTS.660/BLH-WAS/LAS/11 dated December 28th, 2012 on Wastewater Utilization Permit on Land for Plantations PT Ramajaya Pramukti. Based on laboratory test results during the period from July to September 2013, the liquid waste quality parameter is not exceed the quality standard. For instance on September 2013 ( pH = 7.13 and BOD = 4,985 mg / l ) The entire operational activities which lead to a decrease in air quality has been monitored and managed, and reported to the relevant agencies. Company has reported the measurement result for disturbance from static source to related agencies like stated in the RKL / RPL reports for 1st half of 2013. Company has also submitted the RKL / RPL report to BLH of Kampar district on September 2nd, 2013 and to the Minister of Environment on the same date.


ASSESSMENT REPORT



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.

Until the ongoing assessment there is no change on company operational area. Company has had EIAdocuments which prepared in 1993 by PT Dharma Consulting Services and has been approved by the Minister of Agriculture on March 18 th, 1994 with the approval number RC.220/497/B/III/94. This document has been identified the social issue that might be arising as well as management actions, such as:

The impact on work opportunity

The impact on increasing community’s income

Social unrest because the continuity of agriculture business Based on the RKL-RPL 1st half of 2013, there has no conflict occurs between company and surrounding community related to social issues and work opportunity. The monitored impacts and management by company were: social unrest, increasing community’s income and increasing work opportunity, Company has had document survey on social economic, cultural and perception from surrounding community of PT Ramajaya Pramukti including plasma smallholder which prepared by company's internal team in 2010. In determining the recommendations on company’s impact using sampling methods and focus group discussion with surrounding communities being affected. Based on community’s aspirations then the social impact management recommendation will be drafted, such as:

Negative Impact Reccomendation on negative impact management

Damaged Road Periodic Road maintenance by involving community through mutual cooperation for the mutual benefit.

Waste and air pollution

Evaluation on pollution and waste evaluation

Evaluation on type of pollution

Evaluation on proximity of LA application location with community residential

Evaluation on pollution and waste source

the unevenly labour recruitment

Communication with the local government is increase especially in personnel recruitment process.

Dragon fruit business development in Kayu Aro village

Based on the RKL-RPL 1st half of 2013, company has made various efforts to manage the existing social impact, for instance:

Impact Management and monitoring plan

Utilization of personnel The addition of personnel and retaining the number and composition of personnel

Opportunity to develop a bussiness

Providing an opportunity for local merchants as company’s partner Positive respond toward the presence of local businesses

Providing an opportunity for community to strive related to the presence of personnel and residents

Based on the assessment, company has prepared periodic environment monitoring and management report. Based on document review, can be shown the document reports as follows:

Monitoring Report on Implementation of Environmental Management Plan (RKL) and Environmental Monitoring Plan


ASSESSMENT REPORT


(RPL) period of 1st half of 2013 for Ramarama mill and plantation. Documents submitted to the BLH of Kampar District on September 2nd, 2013 (match with receipt and stamp of the Environment Agency)

Environment Quarter Report of PT. Buana Mas for Ramarama mill’s unit period 3rdQuarter of 2013, submitted on October 21st, 2013 to BLH of Kampar District, Ministry of Environment, and BLH of Riau Province


6.2 There are open and transparent methods for communication and consultation between growers and/or millers, local communities and other affected or interested parties.

Company has consistently kept a record on all incoming request for information letter as well as the response. The entire recording on information request been recorded in the register book of "Communication Book" while record on the provision of information recorded in the register book of “Information Book". So far, the relationship between company and stakeholders are good and the company has a list of relevant stakeholders, for instance indigenous people (3 people), local communities (4), NGOs (3 agencies). In order to maintain the communication between company with stakeholders, company pointed officer who responsible for the social issue through RC letter – Kampar district No. 004/RC-Kampar/07/2013 dated July 1st, 2013 as a Social Responsibility officer, with below responsibilities:

Accommodate the implementation of social impact assessment

Responsible for the implementation of the communication and consultation process with stakeholders

Build a reciprocal relationship between company’s unit with community, traditional and religious leaders, social organizations and related government officers.

Coordinate with HR Ops related to employment


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

Company provides an open means and mechanism to receive complaints in accordance with the procedure of SOP on grievance and dissatisfaction (SOP / CPR / PKK), dated February 5th, 2010 and SOP on land conflict resolution (SOP / CPR / PKL) dated February 5th, 2010 that involve community participation and institutions in solving the land conflicts. All footage on requests for information or complaints had been documented in Communication book that stated the number, date and number of letter, sender's name, Institution, request, purpose, initial of decision maker, disposition, reference number and final status.


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.

Company has a land conflict resolution procedures (SOP / CPR / PKL) dated February 5th, 2010 which contains the mechanism to identify and calculate the compensation. Until now the whole compensation process has been completed by the company against the concession area involving traditional leaders, village leader, and land acquisition committee. All compensation activities undertaken by the company has been documented on recording of compensation receiver, for instance: recapitulation of Owner List/ Cultivators, Plant and Building to be paid by PT Buana Wiralestari. Based on Assembly's decision of Land Acquisition committee meeting in Kampar District on March 17 th, 1992 in Bangkinang outlines the Owner name/ Cultivators, total area, Land Layout, compensation price, number of compensation, type of compensation, plantation type, building compensation, the total compensation and signature of compensation receiver. In this record there are 707 smallholders who received compensation covers a total area of 2,467.2 hectares and has been signed by the national land agency, local government of Kampar, plantation agency of Kampar, Head of Siak Hulu sub-district, Sekijang village, and Kampar regent


ASSESSMENT REPORT



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.

Based on the observation on recording list of SKU and BHL personnel salaries on September 2013 and interviews with spray personnel in Division 3 Block D09, personnel have been paid in accordance with the company's payroll system and above the minimum wage set by Riau Governor Regulation No. 67 in 2012. Collective Labor Agreement (CLA) between Sumatra Plantations Cooperation Agency (BKS-PPS) with the Executive Committee of the Federation of Agriculture and Plantation Workers Union of Indonesia (PP.FSP.PP-SPSI). The CLA has been registered by the Decree of Directorate General of Industrial Relations and Social Security Decision No. 191/PHIJSK-PKKAD/PKB/XII/2012 with a validity period from November 14th, 2012 until November 13rd, 2014. The CLA regulates the rights and obligations of personnel, for instance, personnel rights in the association, working hour, overtime, social security, and personnel’s other rights and obligations. Based on observations in personnel housing at Division 01 Rama Rama Plantation, Company has provided housing, education, clean water, health care, and adequate public facilities. Clean water infrastructure as a public facility has been periodically tested for it’s water quality and is in accordance with the applicable quality standard. SPK No. 03/RRME/LKL/01/13/Akt.TBS on behalf of H. SH Masnur at Muara Mahat Baru village of UPT III Bangkinang X/ G, for FFB transportation in Plantation Division I . Article 6 point 4 vehicle and the driver has a letter (BPKN, STNK, KIUR Letter), point 6, the second party is able to comply the labor law, especially related to wages and working age. Article 7, the second party guarantee the safety and health throughout its workforce and provided personal protective equipment in accordance with applicable regulations.


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

Company's policy of granting the freedom to establish association stated in: - Collective working Agreement between Sumatra Plantations Cooperation Agency (BKS-PPS) with the Executive Committee of the Federation of Agriculture and Plantation Workers Union of Indonesia (PP.FSP.PPP.SP.SI) of 2011-2012 article II that employer (PT RJP) guarantees the freedom to establish association for personnel. - Circular letter No.045/CEO5-SE/11/2010 on November 16th, 2010 on personnel’s freedom to establish association in Company which made by the CEO Rama Rama Mill

Agricultural and Plantation Workers Union SPSI Rama Rama mill and KCP Petapahan Village. Tapung sub district Kampar District No: 001/PUK-FSPPP SPSI/09/2012 dated September 12nd, 2012. The evidence of Recording by manpower agency of Kampar District, No: 251/DSTK-PUK FSPPP SPSI/2012/09, dated October 23rd, 2012. With the number of members as of September 2013 amounted to 191 people.

Records of SPPP SPSI Rama Rama mill dated March 9th, 2013. Meeting was held in the Meeting Room of Rama Rama mill, with the agenda of discussing the formation of committee for HUT RI 68 and the agenda of celebrations, drafting the funding proposals, and was attended by officials and members.

Rama Rama Plantation

Agricultural and Plantation Workers Union SPSI PT RJP for Rama Rama plantation have been established and approved by Branch Executive of FSP.PP-SPSI Kampar district by Decree No: Kep-/30/DPC-FSPPP-SPSI/VII/2012, dated July 6th, 2012. The Agricultural and Plantation Workers Union SPSI PT RJP for Rama plantation has been recorded by manpower agency of Kampar District, with a record No: 251/DSTK-PUK SPPP-SPSI/2012/20, dated October 31st, 2012. With total members until September 2013 were 439 people.

Records of SPPP SPSI Rama Rama plantation meeting dated August 20th, 2013. Meeting was held in Office’s Division 1 & 2 with the agenda of discussing the proposed facilities for personnel children who have a high


ASSESSMENT REPORT


achievemant in 2012-2013, which was attended by officials and members.


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

There is a circular letter from HR Director No. 002/SE-HRDV// 03/09 dated March 31st, 2009 that the minimum age for personnel is 18 years old. Based on observation on FFB processing in rama-rama mill, the harvesting activity in rama-rama plantation division 2 Blocks C7 and spray activities in Division 3 block D09, there was no personnel 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.

Company's policy regarding the provision of opportunities and equal treatment contained in circular letter No. 003/CEO5-SE/06/2009 on June 24th, 2009 that regulate the implementation of industrial relations in unit. One of the samples is that company gives the freedom for personnel to work in any kind of field work without discrimination on race, religion, race and gender. Based on interviews with SPPP SPSI Rama Rama mill and plantation, there are no report from personnel regarding the discrimination experience on race, religion, race and gender, Company provides the opportunity and equal treatment in employment


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

Company has a policy to prevent sexual harassment and violence against women and to protect reproduction right. Company also issued circular Letter, such as:

Circular letter from Head of Agronomy unit No.001/CEO5-SE/02/2009 dated February 20th, 2009 which govern the outreach efforts to prevent and address the sexual harassment to all employees.

Circulated letter No. 001/SE-VPA5/SPO/07/2011 dated July 8th, 2011: pregnant and nursing personnel are prohibited to work in spraying activities and work that are directly related to the management of hazardous chemicals in accordance with applicable regulations. There is also circular letter No. 002/CEO5-SE/03/2009 dated March 2nd, 2009 regarding the menstruation permit. During first and second day of menstruation period, female personnel are allowed to take a leave according to company physician examination.

Female personnel commission consistently take a role as a form of sexual harassment policy implementation and reproductive rights protection by conducting socialization and handling the sexual harassment case at the company. There is a document on grievance procedure (SOP/NP/SMART/XII/MCAR001) dated July 1st, 2010. Based on the SOP, grievance divided into 3 types:

Internal Complaints: Complaints submitted by personnel for this type is using the mechanism of dissatisfaction and Grievance 1.

External Complaints: Complaints submitted by external parties, for this type is using the mechanism of dissatisfaction and Grievance 2.

Complaints from female personnel: personnel complaints from female personnel, for this type is using the mechanism of dissatisfaction and Grievance 3

In addition to these procedures, LKS Bipartit has been established in PT Ramajaya Pramukti as a medium for the submission


ASSESSMENT REPORT


of personnel’s complaints and grievances, with an organ gram such as chairman, secretary and members who are representatives of personnel and employers.

LKS Bipartit of Rama-rama mill for period 2013 – 2015, Decision letter from social and manpower agency of Kampar District No. KEP.560/DSTK-LKS BIPARTIT/2013/58 dated September 12th, 2013 that valid for 2 years.

LKS Bipartit of Rama-rama plantation period 2012 - 2014 Decision letter from social and manpower agency of Kampar District No. KEP.560/DSTK-LKS BIPARTIT/2012/15 dated October 31th, 2012, that valid for 2 years.


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

PT Ramajaya Pramukti has a smallholder partnership scheme which is Sungai Tapung Plasma and Amarta Jaya Plasma. Based on interviews with members of KUD, the FFB price determined by the price Committee that consisting of Company’s representative, Plasma smallholder and facilitated by the Plantation agency of Riau Province. Pricing is valid for 1 week and come into effect every Wednesday. The price committee meeting held every Tuesday. The applicable Prices stated on a bulletin board in the office KUD and always been updated, for instance applicable price for period of October 23rd– 29th, 2013 for FFB from plants aged over 10 years is Idr. 1.732,42/ Kg FFB. This was based on pricing committee meeting of Riau Province dated October 22nd, 2013, No. 42/TPH.TBS-X/2013.

Company cooperates with local contractors for providing services within the scope of RRME operation, for instance, FFB transportation services by a local contractor named H. Masnur SH which is located in Muara Mahat village, Bangkinangg and in accordance with SPK No. 03/RRME/LKL/01/13/Akt.TBS dated January 2nd, 2013 and valid until December 31st, 2013. Payments was made in accordance with the agreement, for instance payment on the work for period September 2013 was disbursed on October 1st, 2013


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

Mill and plantation contribution toward local development was done through taxes payment and periodically levies to local governments and the CSR realization to surrounding community. Some CSR contributions realized during 2013 includes support the educational aspects, repair roads, village government activities, social aspects of religion, local purchases, etc.

Company contribution toward sustainable local development and district development, for instance:

a. Based on visit to KUD Makmur Lestari and Mekar Jaya stated that the biggest benefit for community is the development of plasma plantation.

b. Based on CSR actual activities document in 2013 (until September), company has implemented the assistance for surrounding community. c. Company cooperates with local contractors for providing services within the scope of RRME operation, for instance, TBS transportation services by a local contractor which is located in Muara Mahat village, Bangkinang and in accordance with SPK No.03/RRME/LKL/01/13/Akt.TBS dated January 2nd, 2013 and valid until December 31st, 2013. Payments are made in accordance with the agreement, for instance payment on the work for period September 2013 was disbursed on October 1st, 2013 in accordance with Giro Bank of BNI No. BL 250043.


PRINCIPLE #7 RESPONSIBLE DEVELOPMENT OF NEW PLANTINGS


ASSESSMENT REPORT


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.

Based on document review and field observation, company has not done any area expansion and development of plantations after November 2005. The last land clearing is at 2002 in Rama-rama plantation and covering an area of 45.13 ha and company has a plan to undertake replanting in 2019.

Before the company operates, company has conducted an environment study as stated in EIA document that agreed on March 18th, 1994 by ministry of agriculture through the letter No. RC.220/497/B/II/1994 with mill capacity amount 60 tones FFB/hour. The covered areal in EIA is Rama-rama mill, rama-rama plantation and PIR-TRANS In environmental analysis document (EIA) also included the study for partnership pattern which is Tapung river plasma and Amarta Jaya Plasma which covers an area of 10,011 hectares and involving 10 cooperatives (KUD).


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.

Based on document review and field observation, company has not done any area expansion and development of plantations after November 2005. The last land clearing was in 2002 at Rama-rama plantation and covering an area of 45.13 ha and company has a plan to undertake replanting in 2018. Before the company operates, company has conducted a soil and topography survey in 1991, soil classification within the Rama-rama plantation according to the USDA such as Typic Distrudepts and Endoaquepts or Inceptisol soil type. There is no marginal soil type within the RRME unit.


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.

PT Ramajaya Pramukti has not done any area expansion and development of plantations after November 2005. Planting years for kijang plantation area were in 1991, 1992, 1993, 1996 and 2002. Identification of HCV conducted in 2010 by assessor steam that have gained an approval from RSPO and was approved in 2011. Early construction of plantation was not done in the primary and or conservation area, because according to a map of forest area at that time, PT. Buana Wira Lestari mas are was within the Other Uses area (APL) or outside forest area.


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

Based on document review and field observation, company has not done any area expansion and development of plantations after November 2005. The last land clearing was in 2002 at Rama-rama plantation and covering an area of 45.13 ha and company has a plan to undertake replanting in 2018. Before the company operates, company has conducted a soil and topography survey in 1991, soil classification within the Rama-rama plantation according to the USDA such as Typic Distrudepts and Endoaquepts or Inceptisol soil type. There is no marginal soil type within the RRME unit.


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.


ASSESSMENT REPORT


PT Ramajaya Pramukti has not done any area expansion and development after November 2005. Planting years were in 1991, 1992, 1993, 1996 and 2002. The entire area has been compensated in accordance with the applicable regulation and there were no traditional rights or indigenous rights. Please refer to criteria 2.2 and 2.3.

Status : Not Applicable

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

PT Ramajaya Pramukti has not done any area expansion and development after November 2005. Planting years were in 1991, 1992, 1993, 1996 and 2002. The entire area has been compensated in accordance with the applicable regulation and there were no traditional rights or indigenous rights. Please refer to criteria 2.2 and 2.3.


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.

There was no new plantation development within PT Ramajaya Pramukti area. Based on Rama-rama plantation areal statement, the youngest existing crop within PT Ramajaya Pramukti concession are crops that cultivated in 2002.

Company has not done any area expansion and development of plantations after November 2005. Land clearing is in accordance with land clearing with zero-burning SOP contained in Committee Agronomy and Research Management on Land clearing and planting (SMA/MCAR/05/05-07) Chapter V. SOP mentioned about technical implementation for land clearing by drafting the spatial planning, path-blocking, Imas, uprooted, mechanical Perun, saplings and chopped.


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.

In accordance with applicable regulations, Company has an obligation to report the environmental management result to local government agencies every 6 months in the form of monitoring reports and environmental management. In addition, the company also required to reporting mill’s liquid waste monitoring and management every 3 months and the results of liquid waste monitoring for land application every 3 months. Company has conducted an evaluation and management on environmental aspects contained in plantation. For instance:

Certain chemical material usage There has been a trend of decline in the use of paraquat during the period 2010-

The environmental impact There is environmental management and monitoring report for 1st half of 2013 which describe the management measures and environmental monitoring has been carried out by company in accordance with EIA direction.

Reduction of waste Company has had documentation on waste decreasing as well as waste management. For instance the utilization of empty fruit bunch for substitution and reduce the use of chemical fertilizers, as well as the liquid waste application for plantations to reduce and utilize mill’s liquid waste

Social Impact The Company has conducted regular monitoring on social impact that may arise as a result of company’s activities. Until now, there is no social conflicts has occurs between company and stakeholders.

Company has an implementation on plantation and mill innovation for period 2013 as a continuous improvement effort as shown in the table below:

Location Innovation implementation Deadline


ASSESSMENT REPORT


RamaRama Plantation

Gupon bayangan/ Shadow Barn Owl Boxes September 2013

Wing Titi Harvest in sandy areas September 2013

RamaRama Mill

Comparison of ball valve and butterfly valve for condensate sterilizer

June 2013

Mal to conserve the usage of packing at mill July 2013

Recycle of turbine cooling water to the reservoir August 2013

As an effort to implement the sustainable improvement, company has conducted an internal audit as set out in the document Corrective Action and Management Review of Internal Audit Report on the RSPO from September 2nd, 2013 until September 6th, 2013. Based on the results of RSPO internal audit, there were 11 findings and all findings have been suitable, for instance: finding on RSPO criteria 4.3, the erosion control planting data updates is not available. Company has taken remedial action by completing the erosion control plantation report on the riparian area.



ASSESSMENT REPORT


3.2 Summary of Assessment Report of the RSPO Certification ASA-1 Scheme Smallholders SUNGAI TAPUNG PLASMA & AMARTA JAYA PLASMA

Ref Std. VERIFICATION RESULTS BY MUTU CERTIFICATION

PRINSIP #1 COMMITMENT TO TRANSPARENCY

1.1 Scheme manager provide adequate information to other stakeholders on environmental, social and legal issues relevant to RSPO Criteria, in appropriate languages & forms to allow for effective participation on decision making.

AMARTA JAYA PLASMA (KUD Makmur Lestari, KUD Mekar Jaya) & SUNGAI TAPUNG PLASMA (KUD Karya Tani, KUD Tunas Makmur): Information requests, aspirations, assistance and correspondence will be entered into a communication book by secretary in KUD under the supervision of person in charge. Person in charge will directly respond the information request; if person in charge can’t respond/ answer, it will be coordinated with related parties such as Supervisor Board/ Diskop, relevant government agencies, company’s partners and/ or other institutions. The decision toward response request will be submitted through the official letter from the cooperative and recorded in communication books and KUD’s outgoing letter. Documents shelf life is 5-year and supervised by company’s partner that pointed bu the management.


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.

AMARTA JAYA PLASMA (KUD Makmur Lestari, KUD Mekar Jaya) & SUNGAI TAPUNG PLASMA (KUD Karya Tani, KUD Tunas Makmur):

Type of information and responses provided by farmer organization (Cooperative) including documents that are in accordance with applicable national regulation, such as:

•Legal: land ownership certificate in the form of a copy certificate, deed of farmer organizations/ cooperatives establishmen t, Business License and Institution Registration (TDP), Decree of Ministry of Cooperative, Forest release Permit, list of smallholders member, document of smallholders institution partnership and Company partners, etc.

• Environment: the available environmental Document at farmer institutions, such as EIA, Environmental Monitoring Plan (RPL), Environmental Management Plan (RKL), RKL-RPL Implementation Report, List of Protected Species, Environmental Monitoring file and the existence of Conservation Area. • Social: Smallholder’s organization has a document of activity and social such as: Organizational Structure of smallholder’s institution, number of smallholders Groups and Person in Charge, Annual Member Meeting documentation and Social Event.


PRINSIP #2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

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

AMARTA JAYA PLASMA (KUD Makmur Lestari, KUD Mekar Jaya) & SUNGAI TAPUNG PLASMA (KUD Karya Tani, KUD Tunas Makmur): KUD Mekar Jaya & KUD Makmur Lestari: There is a documentary on Handover and Dissemination of Current List of Applicable Laws and Regulations of Licensing dated December 10th, 2012 which contains 14 rules (Law No.5/1960; Law no.18/2004; Law No.12/1992; PP No.26/2008; PP No.24/1997; PP No.40/1996; Kepmenhutbun No.376/KPTS-II/1998; Kepmenhutbun no.146/KPTS-II/2003; Chewing Agrarian / Head of BPN No. 2/1999; Permentan No.26/2007; Law Decree No.17/2012 Cooperatives; Pergubri No.22/2006; Regulation No.4/1994; PP No.17/1994), where the document was signed by the PIC of Document, Chairman of guiding committee of occupational health and safety and Chairman of KUD Makmur Jaya. There are also similar document for KUD Makmur


ASSESSMENT REPORT


Lestari, dated December 10th, 2012. KUD Tunas Makmur: Legality: Smallholders Cooperative Tunas Makmur, Tapung River Plasma: - Deed of establishment for Tunas Makmur Smallholders Cooperative, Kota baru village, tapung hilir sub district. has been registered by the Head of Department of Cooperatives and PKM of Kampar District dated June 25th, 1999 No: 181/BH/KDK.4/I/VI/1999. - Company Cooperative Registration No.040825200113 valid until June 7th, 2015. - Small Business License No. 570/KPT/113 dated June 7th, 2010. Person in charge: Marudut Sitinjak. - Operating Permit/ License for Business, Decision of the Head of Integrated Services Office of Kampar District. No. 570/KPT/070. - TIN KOPSA Tunas Makmur Reg No: 115801-2110, TIN No. 1.782.982.1-211. - RAT closed on December 31st, 2012, Last period was on March 11th, 2013. Board Accountability report, which was attended by all members of Cooperative. Financial balance sheet has been done by independent public accountant auditor Noor Salim, Nursehan & Sinarahardja (KEP-374/KM.6/2003) with No: 011NNS-BH/LA-KOP/II/2013, dated February 6th, 2013. The results of a public accountant report states that the financial statements KOPSA Tunas Makmur present fairly in all respected material, financial position of KOPSA Tunas Makmur dated December 31st, 2012. Organizational structure of KOPSA Tunas Makmur (based on the Annual Member Meeting): Builder: Head of Kota Baru village& STPA plantation, Chairman, Secretary, Treasurer, Board of Supervisors. Field personnel: Transportation clerk, Production clerk, Grading Witness. Smallholder Group Number: 29 KT with a total membership of: 580 smallholders, covering an area of 1,160 Ha. KUD Karya Tani: Legality: Karya Tani smallholder’s cooperative, Tapung river plasma: - Establishment Deed of Karya Tani smallholder’s cooperative, Suka Maju village, Tapung hilir sub district. has been registered by the Head of Cooperatives agency and PKM of Kampa rDistrict dated November17th, 1999 No. 334/BH/KDK.4/I/XI/99. - Company’s cooperative Registration No. 040834501854 valid until August 23rd, 2016. - Medium SIUP/Business License No.503/KPT-SIUP/2603 dated December 23rd, 2011. - Permit to use the land, decision from Head of Integrated Services office of Kampar District. No. 503/KPT-PPT/2633, December 23rd, 2011. - TIN of Tunas Makmur KOPSA with a registration No: 116484-2112, TIN No: 1.906.837.8-211. - RAT closed on December 31st, 2012, the last time was conducted on June 29th, 2013. Board Accountability report was attended by all members of the Cooperative. Based on information from Mr. Darmaji (Chairman of KUD) according to the results of member’s meeting, the financial audit was not conducted, but can be carried out by the Supervisory Board on December 10th, 2012. Organization structure of KOPSA Karya Tani (based on the Annual Member Meeting): Builder: Head of Suka Maju Village & STPA plantation. Chairman, Secretary, Treasurer, Supervisors board. Field personnel: Transport clerk, Production clerk, Grading Witness. Number of smallholders group: 21 KT with a total membership: 420 smallholder, covering an area of: 840 Ha.


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

AMARTA JAYA PLASMA (KUD Makmur Lestari, KUD Mekar Jaya) & SUNGAI TAPUNG PLASMA (KUD Karya Tani, KUD Tunas Makmur): KUD Makmur Lestari:


ASSESSMENT REPORT


All plots owned by smallholder of KUD Makmur Lestari amount 500 plots of households (1,000 ha) has received an ownership certificate (SHM) issued by the National Land Agency (BPN) of Kampar District, for instance: • Land Certificate No. 07/PIR/KW.24-KR/95 decree dated 10.10.1995 No. 58, Persil No. 655 on behalf of Suntoyo, Petapahan Village, covers an area of 20,000 M2, belong to the KT. Margo Rukun. KUD Mekar Jaya: Consists of 482 Member, where all plots owned by smallholder have gained ownership certificate (SHM) issued by the National Land Agency (BPN) of Kampar District, for instance; • Land Certificate No. SK 04/PIR/KW.24-KR/98 dated April 9th, 1998 No. 372 on behalf of Munawir, Sei Lambu Makmur village, covers an area of 20,000 M2, include in KT. Teratai Putih Block K7. Based on interview in the field with smallholder, named Sumarno in KOPSA Mekar Jaya area, auditor found that this person has a land of 2 Ha which include in Block K13 (Sort No. 1540). This is then juxtaposed in a land title document (SHM), where this person already has ownership certificate (SHM) with SK No. 04/PIR/KW.24-KR/98 No. dated April 9th, 1998. Sort No. 95 date of measurement: April 11th, 1998 covering an area of 20,000 M2. KUD Makmur Lestari & KUD Mekar Jaya: Based on interviews with the chairman and board of KUD Makmur Lestari and chairman of KUD Mekar Jaya, stating that until the S1 there is no objection from other parties related to land ownership within the area of cooperative KUD Makmur Lestari. Interviews with the Chairman of KUD Makmur Lestari mentioned that if there is an objection at smallholder’s level will be resolved at the level of smallholder groups and cooperatives, and if there are problems related with nucleus plantation will be resolved at KUD or communication forum of plasma smallholder. In each KUD there is a suggestion box to record the incoming and outgoing letter. Regular meetings with smallholder groups conducted periodically depending on each KUD in determining the frequency of meeting, for instance at the time of the cooperative annual RAT. SUNGAI TAPUNG PLASMA: KUD Tunas Makmur: Sample of land ownership’s letter: 1. Land Certificate No: 412, Persil No. 2760, cover an area of 2 hectares, Measurement Letter No. 412/22.05/PIR/2007 dated April 2nd, 2007. Date of SHM issuance April 3rd, 2007. 2. Land Certificate No. 415, Persil No. 2763 on behalf of first land owner, cover an area of 2 hectares, Measurement Letter No: 415/22.05/PIR/2007 dated April 2nd, 2007. Date of SHM issuance April 3rd, 2007. Deed of Sale No. 404/2008 dated February 8th, 2008 on behalf of the current land owner. 3. Land Certificate No. 418, Persil No. 2776, cover an area of 2 hectares, Measurement Letter No. 418/22.05/PIR/2007 dated April 2nd, 2007. Date of SHM issuance April 3rd, 2007. KUD Karya Tani: Sample of land ownership’s letter: 1. Land Certificate No: 161, Persil No. 2409, cover an area of 2 hectares, Measurement Letter No: 163/22.03/PIR/2007 dated April 2nd, 2007. Date of SHM issuance April 3rd, 2007. 2. Land Certificate No. 163, Persil No. 2411, cover an area of 2 hectares, Measurement Letter No: 165/22.03/PIR/2007 dated April 2nd, 2007. Date of SHM issuance April 3rd, 2007. 3. Land Certificate No. 181, Persil No. 2429, cover an area of 2 hectares, Measurement Letter No: 183/22.03/PIR/2007 dated April 2nd, 2007. Date of SHM issuance April 3rd, 2007.


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.

AMARTA JAYA PLASMA KUD Makmur Lestari, KUD Mekar Jaya: Based on documents verification and interviews with broad of Makmur cooperative and KUD Mekar Jaya or smallholders


ASSESSMENT REPORT


plasma members, they mentioned that there is no traditional right transfer of ownership by smallholder institution/ plasma smallholders. The entire plasma area has land certificate (SHM) issued by national land agency of Kampar district. SUNGAI TAPUNG PLASMA: KUD Tunas Makmur: Meanwhile in one of smallholder’s member of KUD Tunas Makmur, there is an area transfer on one of smallholder, for instance: Land certificate No: 415, No: Persil: 2763 on behalf of the first land owner, covering an area of 2 hectares, Measurement Letter No: 415/22.05/PIR/2007 April 2nd, 2007. Date of issue SHM April 3rd, 2007. Deed of Sale No: 404/2008 dated February 8th, 2008 on behalf of the second land owners which endorsed by Land Deed Official. Sale and Purchase Agreements contain of: the minutes of the sale and purchase of prior land owner to the new land owners in accordance with applicable laws and regulations. While SHM document also handed over which also have an attachment of measurements result map from Land agency with a scale of 1:5000. KUD Karya Tani: All smallholder members of KUD Karya Tani have an evidence of their land and there is no transfer of ownership (sale of land) since 1999.


PRINSIP #3 COMMITMENT TO LONG-TERM ECONOMIC AND FINANCIAL VIABILITY

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

AMARTA JAYA PLASMA & SUNGAI TAPUNG PLASMA

Smallholder’s institution has 3 years production plan document (2013-2015) which drafted together with corporate partner such as production projection data below:

Plasma KUD’s name Hectarage

(Ha) FFB projected production (Kg)

2013 2014 2015

Amarta Jaya

Makmur Lestari 1,000 27,610,050 27,057,849 26,516,692

Sibuak Jaya 1,066 29,221,721 28,637,291 28,064,545

Muara Mahat Sejahtera

914 25,843,350 25,326,483 24,819,953

Mekar Jaya 964 26,317,200 25,790,856 25,275,039 Mukti Lestari 482 14,024,500 13,781,155 13,548,249

TOTAL 4,426 123,016,825 120,593,634 118,224,478

Sungai Tapung

Karya Tani 840 25,280,640 24,294,695 19,320,000

Bangun Desa 1,671 49,564,320 47,631,312 35,623,000

Cinta Damai 1,257.5 37,095,600 35,648,872 26,635,000

Tunas Makmur 1,160 35,860,000 34,425,600 26,680,000

Berkat Lestari 656.5 20,679,750 19,852,560 13,897,000

TOTAL 5,585 173,144,500 166,218,720 122,155,000

Not only production plan, in long term plan also consist of transportation cost, procurement target for Plasma FFB and benefit projection. The document made by company partner - PT Ramajaya Pramukti.


PRINSIP #4 USE OF APPROPRIATE BEST PRACTICES BY SCHEME MANAGER

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

AMARTA JAYA PLASMA (KUD Makmur Lestari, KUD Mekar Jaya) & SUNGAI TAPUNG PLASMA (KUD Karya Tani, KUD Tunas Makmur): GAP Manual for superior seeds usage, Integrated Pest Management (IPM), fertilizing, harvesting system refers to the


ASSESSMENT REPORT


Management Committee of Agriculture and Research (MCAR) of company partner PT Ramajaya Pramukti. As an evidence of the implementation of the Technical Guidelines on Aquaculture, the cooperative along with company’s partners develop a work program for cultivation in the form of the Division Work Program that contain the Good Agriculture Practice activity. Entire documentation and records of each activity are well stored in cooperative office.

Status : Full Compliance

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

AMARTA JAYA PLASMA (KUD Makmur Lestari, KUD Mekar Jaya) & SUNGAI TAPUNG PLASMA (KUD Karya Tani, KUD Tunas Makmur): PT Buana Wiralestari Mas through Research department (SMARTRI) conducting leaf analysis. Leaf sample was taken from several blocks. This activity conducted annually in each KUD (Cooperative) in order to support the development of fertilizer usage based on the identification of nutrient required by the palm oil plantation in Amarta Jaya and Sungai Tapung Plasma plantation. Each cooperative manage the fertilizer distribution from company to be distributed to smallholder as indicated in the document of fertilizer usage in each KUD. Fertilizer been distributed such as: Urea, Phosphate, Kieserite, Dolomite and Borat. The payment of these fertilizers using a credit system which imposed on cooperatives and smallholders in accordance with cooperative agreement Productivity record for the last 3 years (2011-2013) for Amarta Jaya and Sungai Tapung Plasma is presented on below table:

AMARTA JAYA SUNGAI TAPUNG

Year Hectarage (Ha)

FFB Productivity(kg)

Yield (ton/Ha/Tahun)

Year Hectarage (Ha)

FFB Productivity

(kg)

Yield (ton/Ha/Tahun)

2011 4,426 125,000,040 28.24 2011 5,585 191,464,100 34.28

2012 4,426 138,516,700 31.30 2012 5,585 187,273,430 33.53

2013* 4,426 84,804,700 19.16 2013* 5,585 119,933,470 21.47

* data until September 2013


4.3 Practices minimise and control erosion and degradation of soils.

AMARTA JAYA PLASMA (KUD Makmur Lestari, KUD Mekar Jaya) & SUNGAI TAPUNG PLASMA (KUD Karya Tani, KUD Tunas Makmur): Based on Map of Depth Land preview in Amarta Jaya and Sungai Tapung Plasma area with a 1:50.000 scale, soil classification within the plasma area is Inceptisol (Typic Endoaquepts dan Distrudepts) with a sandy loam texture and slope of 0-40% (0º - 22º) and a bit of Typic Haplohemists (0.13% from area) with a depth of 50-100 cm. Meanwhile land suitability classified to S3 class (marginal) and S2 (quite appropriate) with solumn more than 120 cm. Based on field visits, soil conservation efforts carried out for sloping area such as by establish L-shape midrib and rorak, in addition, maintain cover crop such as Nephrolepis sp to decreasing the run-off and establish drainage at each edge of block plant which belong to smallholders members.


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


Soil and water conservation training to smallholder’s member carried out through counseling and conducted by the responsible officer from company's partners and included into HCV socialization. HCV training materials including the riparian


ASSESSMENT REPORT


areas tagging and planting verifier grass on the edge of water flow. Meanwhile the erosion prevention effort and maintain natural water sources for smallholders carried out by spreading information (circular letter) to each cooperatives (KUD) and installation of a warning signs as well as boundaries stakes near the natural water sources. In circular letter stated that spraying pesticide is prohibited within a radius of ± 50 m from water source fitted with a boundary stakes.


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


Integrated Pest Management (IPM) in plasma area is following the procedures and references from company’s partner. IPM work plan was drafted by involving smallholder member based on monitoring census for pest and disease and pesticide’s need calculation, including required dose. From field visit at smallholder’s plantation, auditor can draw a summary that smallholders have a sufficient knowledge especially for integrated pest and disease management, even though only a simple understanding. According to information from smallholders, there has no serious pests and diseases attack from the beginning of plasma development phase.


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 categorised as World Health Organisation Type 1A or 1B, or are listed by the Stockholm or Rotterdam Conventions, growers are actively seeking to identify alternatives, and this is documented.


Chemical material usage especially pesticides by smallholder was followed the direction from company's partners. The entire pesticide was managed by cooperative through cooperation with company’s partner in the provision of chemicals material. Pesticide usage has been registered by the Pesticide Commission of Ministry of Agriculture. However, smallholders still use chemical material such as Paraquat dichloride to control weed’s activity. The usage of paraquat dichloride over the last 3 years had shown a significant reductions for KUD Tunas Makmur and KUD Karya Tani (such as images).

Figure 1 Use of Paraquat by smallholders (Liter)

Spraying team consists of KUD surrounding community and structure of the team members is fixed/ unchanged. All team members have got an adequate training related to the use, means, dosage, time of use and the target weeds. Safety equipment for spray personnel provided by cooperatives, such as: apron, goggles, masks, gloves and boots. Meanwhile for former pesticide containers, stored in special storage near KUD office and has a periodic report on waste

1,044928

464

840

672

336

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2011 2012 2013

Karya Tani

Tunas Makmur


ASSESSMENT REPORT


balance sheet. Former pesticide containers waste were collected and submitted to the company’s partner to be managed according to the applicable procedure. Based on observations and interview with plasma smallholder, there is no re-use of pesticide containers by community or smallholder’s member.


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


Occupational health and safety programs in plasma smallholders cooperative have been prepared by company's partners in the form of procedures, policies and safe work flow for each activity that has a risk. Moreover, training on safe work practices has been performed by company’s partner to all cooperative plasma partners. The responsible officer for first aid is company’s partner staff - Agronomy Assistant and has a license for first aid expert that valid until March 21st, 2014. Based on field visit in smallholder’s plantation sample and interview with personnel and plantation owner, and smallholder who own the land, they quite understand about the safe work procedure and practices. They acknowledged that company's partners regularly and periodically carry out socialization for first aid related aspect.


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

AMARTA JAYA PLASMA (KUD Makmur Lestari, KUD Mekar Jaya) & SUNGAI TAPUNG PLASMA (KUD Karya Tani, KUD Tunas Makmur): All parties involved in the operational activities of plasma plantation schemes have been adequately trained and following a training program created by company’s partner. Types of training such as: First Aid (P3K), Leaf Sampling, Spray Training, Integrated Pest Management, Fertilization and Emergency Response Training. Training activities performed alternately every two months in each cooperative (KUD). All training records were documented and recorded in the office of plasma cooperatives (KUD).


PRINSIP #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.

AMARTA JAYA PLASMA (KUD Makmur Lestari, KUD Mekar Jaya) & SUNGAI TAPUNG PLASMA (KUD Karya Tani, KUD Tunas Makmur): As an effort to manage the environmental impact from the operations activity, company’s partner has environmental impact assessment document and related institution on the presence of PIR – TRANS of PT. Ramajaya Pramukti, that integrated in the EIA document of PT. Ramajaya Pramukti nucleus plantation in 1993 and covering an area of Amartha Jaya plasma in Plasma area. The EIA document is also available in the office of Amartha Jaya Plasma (AJYP).

Meanwhile there is also an environmental evaluation document (DELH) of PT. Ramajaya Pramukti in 2011, based on head of environment agency of Kampar district decision number Kpts/BLH/Dok/2011/139, dated September 29 th, 2011 which have been integrated the PIT TRANS Sungai Tapung Plasma plantation (STPA) that covering an area of 488,79 Ha (nucleus 2.903,79 Ha and Plasma 5.585 Ha). These documents have also been disseminated to smallholders, for instance, on March 9th, 2013 which has been socialized regarding the Negative Impact, along with their management in the AJYP Office which was attended by 20 participants (2 representatives from KUD Mekar Jaya and 2 participants from KUD Makmur Lestari). In the preparation of EIA documents and Delh of PT. Ramajaya Pramukti in 1993, has involved community/ smallholders, for instance on the collecting data related to Socio-Economic-Cultural, community/ smallholders as a resource person. The information from community collected using a semi-structured questionnaires and brief rural understanding methods (Rapid Rural Appraisal).


ASSESSMENT REPORT


There is also survey document on Social, Economy, Culture Condition and Public Perception from the community surrounding plantation/ PT. Ramajaya Pramukti mill, located in: Petapahan village Pantai Cermin Village, Sari Galuh Village, Sukamaju village, Koto Bangun Village, Cinta Damai Village, Kotabaru Village, Beringin Lestari Village, Sibuat Village, Sei Lembu Makmur village, Kinantan village, and the Muara Mahat Baru village. The document has been socialized to smallholders group in decision-related data on July 29th, 2010 (attendance sheet is available). The report was finalized in November 2010. There is an environment implementation Report and the monitoring report on implementation of liquid waste application for Rama-rama mill for first half period/2013 (January to June 2013) which reported on September 2nd, 2013, that cover an area of AJYP plasma as many as 4,426 ha and Reporting documents for the implementation of PT Ramajaya Pramukti environmental permit unit Ramabakti for first half period/2013 that reported to BLH of Kampar district in September 13rd, 2013, the activity description already covers the plasma area of 5,585 hectares. Both types of documents are available in the office of KUD Mekar Jaya and KUD Makmur Lestari.


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.

AMARTA JAYA PLASMA (KUD Makmur Lestari, KUD Mekar Jaya) & SUNGAI TAPUNG PLASMA (KUD Karya Tani, KUD Tunas Makmur): Record on protected species identification is refer to PT BWL Identification of HCV document (2010) which drafted by company’s internal team that has RSPO HCV assessor approved and endorsed in February 2011. The document identified the presence of protected wildlife based on government regulation No. 7 of 1999 and Appendix II CITES such as Root Tigers (Felis bengalensis), whilecekakak Thicket (Halcyon Smyrnensis) species only protected by Government Regulation No. 7 of 1999. There was no wildlife protected by IUCN Red list being identified within the plasma plantation.

Management unit have undertaken some effort to protect the HCV attribute such as by drafting the HCV/NKT management every year with collaboration with company’s partner. Conducting socialization activities such as installation of warning board, distributing brochure and proactive activities toward community and personnel, as well as conducting regular wildlife monitoring (every week) by trained staff. Based on interview with chairman of cooperative and plasma smallholders of KUD Makmur Lestari in Block G11, the Margo Rukun smallholder group as well as chairman of KUD and plasma smallholders of KUD Mekar Jaya in Block K13, auditor found that smallholders able to mentioned type of protected wildlife such as Cekakak and Root Tiger. Based on field visit in Block E11 in Kuo river, auditor also found thE information board on HCV for protected wildlife and this has been understood by small holder.


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

AMARTA JAYA PLASMA (KUD Makmur Lestari, KUD Mekar Jaya) & SUNGAI TAPUNG PLASMA (KUD Karya Tani, KUD Tunas Makmur): Plasma small holder’s cooperatives has an agrochemical waste management procedures such as washing place for spray tools and waste storage for used pesticide containers. The storage area is in KUD of each cooperative office, if the storage already full, the cooperative will contact company partners to take hazardous waste and manage it in accordance with applicable regulation. Company’s partner has a cooperation in managing hazardous waste by sending the hazardous waste to licensed collector.

The Agrochemicals waste management plan is listed in Washing and Cleaning Work Stages for used Pesticides and Fertilizers Sack with document No.TK/KUD-BD/TM/07 and diagram flow of washing used pesticide packaging and fertilizers sack which describes the handling of used pesticide packaging and fertilizers sack. Washing and cleaning phase for used pesticide and fertilizer sacks is: collect all packaging, wear personal protective equipment, washing in the provided place,


ASSESSMENT REPORT


wash package until clean (3 times of washing for pesticide and 1 time for fertilizers sack), the used water for wash should be collected and re-used for spraying. Based on interviews with smallholders cooperative of Makmur Lestari in Block G11 and smallholders of KUD Mekar Jaya in block k13, there is no complaints related to pesticide packaging waste pollution and that smallholders understand how to thrown the agrochemical waste by washing the package as much as 3 times and the used water will re-used for field application, meanwhile the used package waste will handed over to plasma plantation builder. Based on field visit to KUD’s offices, auditor found that mixing area of building facilities is in a good condition and has been functioned.


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

AMARTA JAYA PLASMA (KUD Makmur Lestari, KUD Mekar Jaya) & SUNGAI TAPUNG PLASMA (KUD Karya Tani, KUD Tunas Makmur): Plasma small holder’s cooperative do not utilized the empty fruit bunch or manure in their plantation area. The company’s partner make an energy efficiency guidelines such as the FFB transportation from harvesting site to production collector by using rickshaw/wheel loader, meanwhile for harvesting transportation to mill, the KUD maximized the efficiency of transportation management by taking into account the occupational health and safety aspects.

Based on field observations, auditor found that all smallholders in KJNP (Amartha Jaya Plasma and Sungai Tapung Plasma) are using a rickshaw/ wheel loader at any harvesting activity to transport FFB to polling results (TPH). The KUD maximize the management of FFB transportation from TPH to palm oil mill efficiently. There is a Pollution Reduction Program at PT Ramajaya Pramukti, Amarta Jaya Plasma and Sungai Tapung Plasma in 2013 (as of October 28th, 2013) which outlines information such as: identifying sources of pollution and emissions, types of activities, descriptions of activities, schedules, PIC, targeted activity. For instance: The use of electricity; efficiency on electricity usage in plasma and KUD office as well as using the energy-efficiency lighting; socialization to turning off lights that are not necessary, socialization on earth hour program, replacing the use of lamp types XL to TL; based on needs; Plasma Assistant and KUD’s Administrator; not using the wasteful energy lighting in KUD’s units and plasma’s office.


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.

AMARTHA JAYA PLASMA:

KUD Makmur Lestari and KUD Mekar Jaya have a replanting program planned in 2011-2020 where replanting activity planned to start in 2020 for planting crop year 1993 for KUD Mekar Jaya and start in 2018-2019 for planting crop year 1991-1992 at KUD Makmur Lestari.

SUNGAI TAPUNG PLASMA:

KUD Makmur Lestari and KUD Tani and KUD Tunas Karya Makmur has a replanting program planned in 2011-2020 where replanting activity planned to start in 2020 for planting crop year 1996.

Overall implementation of technically replanting will be done by partners Plasma (PT Ramajaya Pramukti) in accordance with the Technical Guidelines of Sinar Mas Palm Oil Cultivation (Management Committee of Agronomy and Research) Point 5 on land clearing and planting Document No. SMA/MCAR/05/05-07 stated that in order to conduct land clearing should use the Zero Burning principle.

Socialization on replanting activity with chipping system with zero burning method dated September 15th, 2012 conducted in capital office of AJYP which was attended by 19 participants (5 participants from KUD Mekar Jaya and 4 participants from KUD Makmur Lestari).

Based on interviews with the Chairman of KUD Makmur Lestari, Chairman of KT Margo Pillars in Block G11 and Chairman of KUD Mekar Jaya and plasma smallholders in block K13, auditor found that plasma smallholders already know about the prohibition on land clearing by burning and emergency response on fire/ land burning. Related to forest fire emergency response procedures, all small holders have gained socialization and simulation from Company’s Partner on a regular basis. They also equipped with a simple infrastructure and tools for fire extinguishers such as fire beater, Kep, Axe, Hoe, Bucket, Wet burlap, Shovel, Sand. Based on field visit, the entire infrastructures are in a good


ASSESSMENT REPORT


condition.


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


Identification results on pollution resource in smallholder’s plantation undertaken by company’s partner in a form of identification document on environment aspect and management. The identified pollution sources such as residues from operational activity and its potential impact. Some pollution reduction efforts has been done including maximize the payload capacity to avoid wasteful use of diesel fuel, fertilizer application should be in accordance with the recommendation from Department SMARTRI, to use licensed pesticides from the relevant institution, waste management, efficiency on electricity and water usage .


PRINSIP #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.


Identification on social impacts has been carried out by company’s partner for plasma smallholder’s program. The document were a Social, Economic, Cultural and Public Perception survey in surrounding village around Plantation/ mill of PT Ramajaya Pramukti in 2010. The activity carried out by company's internal partners who have an adequate social competence to identify the impact and planning for plasma smallholders including the potential impact on the current replanting activities. Positive and negative perceptions have been outlined in the report of PT Ramajaya Pramukti social impact management and published annually by the Department of Environment of PT SMART Tbk.


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.


Accessible and transparent methods in communication and consultation with stakeholders implemented through: 1. Small holder’s monthly deliberation. The deliberations are intended to find a solution for technical problems, such as grading problems, change in harvesting rotation when approaching holidays, and transportation. 2. Village program deliberation, covering Kopsa participation in activity conducted by the Village, such as religious activit ies, sports, and holiday celebrations. 3. Communication through suggestion box, however until 2013 there is no request for information or communication have been found through the suggestion box. 4. Annual Member’s Meeting (RAT), conducted every year. This activity is part of communication between board and members as well as members between each smallholder’s groups. Report on activity and financial accountability from board to members and also as a medium of communication between partners and cooperatives The officer in charge for consultation and communication with stakeholders is KUD’s chairman. Chairman duties such as: (1) Creating operational work plan.


ASSESSMENT REPORT


(2) Conducting regular monthly meetings. (3) Ensure members decision can be run according to plan. (4) Coordinate with company and external party. (5) Signing labor agreement with company.


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


Complaints and grievances from smallholder’s members can be verbally mention to board or indirectly through the medium of suggestion box located in front of cooperative office or by filling the provided communication book. Person in charge to conduct monitoring for entire communication record, complaints or dissatisfaction is secretary of cooperative.

In the present of a complaint or dissatisfaction addressed to small holder’s organizations, the solution is by using conflict resolution flow and dissatisfaction. This method described that the resolution is done through deliberation in cooperative and village level, if not resolved then handled by applicable regulation. Based on document verification on complaints and field observations to three smallholders’ institution/ cooperatives, neither complaint, dispute or dissatisfaction been identified between small holder’s member nor other party.


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.


Land use in entire KUD came from the Government through the Perkebunan Inti Takyat (PIR)/ transmigrated program in accordance with approval letter from Ministry of Agriculture, Forest release Area from Department of Forestry, Project Implementation Plan for PIR-TRANS and Plasma Plantation Development Permit from Department of Agriculture. Therefore there are no land compensation were made.


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.


Cooperatives (KUD) personnel whom are not smallholder members will work for small holder’s institution with a work agreement. Wages and working requirements for personnel are in accordance with applicable minimum wage for Plantation Sector in Kampar district. All work agreement for personnel and payment slip were well documented in each cooperative office.


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.


ASSESSMENT REPORT


AMARTA JAYA PLASMA (KUD Makmur Lestari, KUD Mekar Jaya) & SUNGAI TAPUNG PLASMA (KUD Karya Tani, KUD Tunas Makmur): Palm oil small holder’s institution also gives freedom to personnel, cooperatives member, small holders group and contractors to establish association or union and deliver their opinion in a collective way. This can be shown by issued policy by each chairman of KUD cooperative in the form of circular letter taped on cooperative office. Based on interviews with small holder’s cooperative member, they already known this policy. However, until now small holders are not interested to create their own union and still rely on small holder institution in terms of communication and consultation, simply because they would like to maintain kinship with each other.


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 programmes. Children are not exposed to hazardous working conditions.


In accordance with company’s partner advice, the entire small holders institution are follow and obey regulation related to child labor prohibition. It is promoted by cooperative institutions to entire small holder’s members surrounding community through circular Letter issued by Cooperative Chairman. For instance: circular letter from head of KUD Tunas Makmur No. 03/KTM-SE/01/2009 dated January 2nd, 2009. The circular letter contains the minimum age for personnel based on laws No. 13 of 2003 on manpower which is 18 years. Field visit to each plantation sample during the harvesting shows that there were no children been involved in plantation activity or administrative work in small holder’s institution/ cooperatives.


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.


KUD has issued a circular letter on the treatment and equal recognition in the work addressed to the entire small holders group’s chairman. For instance, KUD Karya Tani issued a letter about the treatment and the equal recognition in the work addressed to the entire small holders groups chairman, members and KUD personnel on January 2nd, 2009 No. 02/KKT-SE/01/2009. Content of the letter are:

1. Treatment and equal recognition regardless of race, religion, race, and sex in all kinds of jobs.

2. Fair treatment in any case within KUD Karya Tani environment.

Interview with small holder’s member shows that all small holders are treated equally and no form of discrimination arise either from the head of small holder’s institution or cooperative and small holder farmer.


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.


KUD has issued a circular letter regarding the prevention of sexual harassment and all forms of violence against women and to protect women's reproductive which addressed to the entire small holders group’s chairman, KUD personnel and related


ASSESSMENT REPORT


contractor. Person in charge to monitor the sexual harassment in STPA based on organ gram of nucleus plantation gender committee (PT RJP). For instance KUD Tunas Makmur issued a letter regarding the prevention of sexual harassment and all forms of violence against women and to protect women's reproductive health which addressed to entire small holders chairman, members and cooperative personnel on January 2nd, 2009 No. 09/KTM-SE/01/2009. Content of the letter is that KUD Tunas Makmur has a commitment that entire element within each KUD should create a harmonious working environment and free from all forms of discrimination, including sexual harassment and violence against women. Therefore, KUD Tunas Makmur prohibits sexual harassment and violence against women in cooperatives environment and protecting women's reproductive rights. This is applies to the entire small holders cooperative (Amarta Jaya and Sungai Tapung Plasma) under the guidance of PT Ramajaya Pramukti.

Status:

6.10 Scheme manager deal fairly and transparently with smallholders and other local businesses.


Based on complaint book’s review at KUD MEKAR JAYA on 2013 there were no complaints been identified, mean while for FFB pricing for small holders still refers to Riau Governor Regulation No. 22 year 2006 on FFB Pricing guidelines in Riau province that published on Wednesday of each week. The applicable price is installed in information board of KUD office and always updated. Cooperation contracts with partners (contractors) such as agreements for FFB transportation which covered the rights and obligations of the contractor is in accordance with applicable regulations. Moreover there is a road maintenance activity in some of small holder’s organization (KUD) by a pattern of cooperation with company partner, such as rent heavy equipment. Meanwhile for heavy equipment rent cost charged to small holders through road maintenance dues/plots/month, with a vary contribution rate for each KUD.


6.11 Scheme Manager contributes to local sustainable development wherever appropriate.

AMARTA JAYA PLASMA (KUD Makmur Lestari, KUD Mekar Jaya) & SUNGAI TAPUNG PLASMA (KUD Karya Tani, KUD Tunas Makmur): Contribution from company’s partner for local development delivered through CSR programs, while each KUD have their own local development program, such as obligations payment to government in the form of donations for community activities. For instance: dues for religious activities, sports and the provision of public facilities (lighting).


PRINSIP #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.


As an effort to manage the environmental impact from operation activity, company’s partner has Document of Environmental Impact Assessment (EIA) and related institution regarding the existence of integrated PIR – TRANS program that stated in EIA document of PT. Ramajaya Pramukti in 1993, which also covering an area of Amartha Jaya Plasma Plantation. The EIA document is available in Amartha Jaya Plasma (AJYP) office. Meanwhile there is also an environmental evaluation document (DELH) of PT. Ramajaya Pramukti in 2011, based on head of environment agency of Kampar district decision number Kpts/BLH/Dok/2011/139, dated September 29th, 2011 which have been integrated the PIR TRANS Sungai Tapung Plasma


ASSESSMENT REPORT


plantation (STPA) that covering an area of 488,79 Ha (nucleus 2.903,79 Ha and Plasma 5.585 Ha).

Until now there has been no expansion of plantations or replanting within the area of Amarta Jaya Plasma and Sungai Tapung Plasma.


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.


Until now there has been no expansion of plantations or replanting in the area of Amarta Jaya Plasma and Sungai Tapung Plasma Based on Map of Depth Land preview in Amarta Jaya and Sungai Tapung Plasma area with a 1:50.000 scale, soil classification within the plasma area is Inceptisol (Typic Endoaquepts dan Distrudepts) with a sandy loam texture and slope of 0-40% (0º - 22º) and a bit of Typic Haplohemists (0.13% from area) with a depth of 50-100 cm. Mean while land suitability classified to S3 class (marginal) and S2 (quite appropriate) with solumn more than 120 cm. Based on field visits, soil conservation efforts carried out for sloping area such as by establish L-shape midrib AND rorak, in addition, maintain cover crop such as Nephrolepis sp to decreasing the run-off and establish drainage at each edge of block plant which belong to smallholders members.


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.


Until now there has been no expansion of plantations or replanting in the area of Amarta Jaya Plasma and Sungai Tapung Plasma.

PIR Trans KUD Amarta Jaya Plasma and Sungai Tapung Plasma began in 1993 (the oldest planting) and the youngest in 2002. Based on areal statement documents in KUD AJYP & STPA 2013 budget, there were no new plantings since November 2012. Identification document on HCV has been carried out in 2010by approved RSPO HCV assessor. Kijang Kencana Plasma is one of the identified area and from the identification, there is a protected fauna based on Government Regulation No. 7 of 1999 and Appendix II CITES such as Root Tigers (Felis bengalensis), while cekakak Thicket (Halcyon smyrnensis) species only protected by Government Regulation No. 7 of 1999. There was no wildlife protected by IUCN Red list being identified.


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

AMARTA JAYA PLASMA (KUD Makmur Lestari, KUD Mekar Jaya) & SUNGAI TAPUNG PLASMA (KUD Karya Tani, KUD Tunas Makmur): Until now there has been no expansion of plantations or replanting in the area of Amarta Jaya Plasma and Sungai Tapung Plasma Based on Map of Depth Land preview in Amarta Jaya and Sungai Tapung Plasma area with a 1:50.000 scale, soil classification within the plasma area is Inceptisol (Typic Endoaquepts dan Distrudepts) with a sandy loam texture and slope of 30-40% (0º - 22º) and a bit of Typic Haplohemists (0.13% from area) with a depth of 50-100 cm. Mean while land suitability classified to S3 class (marginal) and S2 (quite appropriate) with solumn more than 120 cm. Based on field visits, soil conservation efforts carried out for sloping area such as by establish L-shape midrib AND rorak, in addition, maintain cover crop such as Nephrolepis sp to decreasing the run-off and establish drainage at each edge of block plant which belong to smallholders members.


ASSESSMENT REPORT



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

AMARTA JAYA PLASMA (KUD Makmur Lestari, KUD Mekar Jaya) & SUNGAI TAPUNG PLASMA (KUD Karya Tani, KUD Tunas Makmur): Until now there has been no expansion of plantations or replanting in the area of Amarta Jaya Plasma and Sungai Tapung Plasma.

Land use in entire KUD comes from the Government through the Perkebunan Inti Takyat (PIR) transmigrated program in accordance with Approval letter from Ministry of Agriculture, Forest release Area from Department of Forestry, Project Implementation Plan for PIR-TRANS and Plasma Estate Development Permit from Department of Agriculture. Based on this fact, there has no compensation for land.


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.

AMARTA JAYA PLASMA (KUD Makmur Lestari, KUD Mekar Jaya) & SUNGAI TAPUNG PLASMA (KUD Karya Tani, KUD Tunas Makmur): Until now there has been no expansion of plantations or replanting in the area of Amarta Jaya Plasma and Sungai Tapung Plasma.

Land use in entire KUD comes from the Government through the Perkebunan Inti Takyat (PIR) transmigrated program in accordance with Approval letter from Ministry of Agriculture, Forest release Area from Department of Forestry, Project Implementation Plan for PIR-TRANS and Plasma Estate Development Permit from Department of Agriculture. Based on this fact, there has no compensation for land.


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.

AMARTA JAYA PLASMA (KUD Makmur Lestari, KUD Mekar Jaya) & SUNGAI TAPUNG PLASMA (KUD Karya Tani, KUD Tunas Makmur): Until now there has been no expansion of plantations or replanting in the Amarta Jaya Plasma area and Tapung River Plasma. In general, replanting activities for the entire small holder’s plantation (KUD) is planned in 2019. Meanwhile the initial plantation development conducted in cooperation with company’s partner by using land clearing with zero burning techniques, in accordance with applicable regulation. Related to forest fire emergency response procedures, all small holders have gained socialization and simulation from company’s partner on a regular basis. It is equipped with a simple infrastructure and tools for fire extinguishers such as fire beater, Kep, Axe, Hoe, Bucket, Wet burlap, Shovel, Sand. Based on field visit, the entire infrastructures were in a good condition


PRINSIP #8 COMMITMENT TO CONTINUOUS IMPROVEMENT IN KEY AREAS OF ACTIVITY

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


ASSESSMENT REPORT


AMARTA JAYA PLASMA (KUD Makmur Lestari, KUD Mekar Jaya) & SUNGAI TAPUNG PLASMA (KUD Karya Tani, KUD Tunas Makmur): Sustainable improvement activity for operation between PT. RJP with small holders set out in Agronomy and Advisory Audit document in 2013 for Amarta Jaya Plasma and tapung river plasma. Implementation of innovation for plasma AJYP Kampar region and Tapung river plasma such as bushes wiping tools with a pinch model. Target for 2013 amount 5 units (May – 2 units, June – 3 units), realization (September – 5 units)



ASSESSMENT REPORT


3.3. Summary of Assessment Report of Supply Chain

Clause (Module E) Pabrik CPO – Persyaratan Mass Balance

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.

a. 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) Company has drafting procedure for identification and traceability (PT RJP-RRMM/SOP/0), endorsed on July 8th, 2012. This procedure describes the mechanism of fruit acceptance (both from nucleus, plasma, and supplier/ independent smallholders), processing, storage of palm kernel and oil palm in storage tanks, as well as the delivery of the product (palm oil and palm kernel) to Dumai bulking station. This procedure also applied the supply chain system in accordance with Mass Balance principles where the coming FFB were from different sources and processed together. This procedure establish FFB acceptance from nucleus plantation and non nucleus will be separated from recording (acceptance code at weigh stations). The available record such as: weigh ticket. For certified CPO and palm kernel will using Mail Delivery Products.

b) The responsible personnel for the implementation of these requirements such as:

Assistant is responsible for supervising the accepted FFB that in accordance with applicable standard and criteria, supervise FFB processing, control the analysis process for product of processed product.

Head of Administration is responsible for registration and reporting the quantity and quality of routinely processed products, to supervise the administration of FFB acceptance and processed products delivery, to supervise the essential tools in the supply chain is in a good condition, accurate, licensed and well maintained.

Head of unit mill (Management representative) is responsible to ensure that entire process on supply chain can be done well, ensuring that the Mass Balance calculations have been done correctly to be able to determine the amount of certified product, provide information to respective parties related to certified product.

Production Controller (Top Management) is responsible to ensure and guarantying that product can be traced to their sources and the delivered product is acceptable in accordance with quantity and quality.

There is no change in the supply chain procedure owned by Kijang mill.

Status: Comply as required.

1.2

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

Refers to explanations 1.1

Rama-Rama POM set a Mass Balance supply chain model in determining the certified and non-certified product. Implementation of the determination of certified and non-certified products is to put "Mass Balance stamp” in the fruit delivery note. Management unit of Rama-Rama POM can demonstrate simulation of document if there is a claim demand on certified CPO. Documents include: Fruits delivery note, Weigh letter and CPO delivery note from mill to bulking station.


2 Purchasing and goods in

2.1

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


ASSESSMENT REPORT


Accepted FFB in Rama Rama POM were derived from nucleus plantation (Rama-rama plantation) and plasma plantation (Amartajaya Plasma) which have obtained RSPO certificate, and independent small holders/ non-certified FFB. RJP has a mechanism to determine the certified and non-certified FFB. Determination is made by putting a "Mass Balance stamp" for FFB from the certified RSPO plantation. For instance: FFB with a nucleus plantation certificate - Delivery note (No. 2120/TBS/V/10/13/6310) dated October 25th, 2013, FFB came from Division 5 Rama Rama plantation

with a quantity of 9.780 Kg (489 bunches); Vehicle Number BM 8076 OU/BIN 08. Delivery note did not completed with “Mass Balance Stamp”

- Weight bridge Card (No. A114526 029530) dated October 25th, 2013, FFB came from Division 5 Rama Rama plantation with a quantity of 9.880 Kg; with Delivery Note: 2120/TBS/05/13/10/6310. Weight bridge Card completed with “Mass Balance Stamp”

FFB with a plasma plantation certificate - Delivery note (No. AJYP/TBS/01/13/2747) dated October 25th, 2013, FFB came from Division 1 Rama Rama

conversion/Plasma (KUD Makmur Lestari - Suka Mulya smallholders group Block E10); Quantity 4.550 Kg (200 bunches), fruit 200 kg; Vehicle Number BM 9861 FK. Delivery note did not completed with “Mass Balance Stamp”

- Weight bridge Card (No. A114452 029456) dated October 25th, 2013, FFB came from Division 1 Rama Rama conversion/Plasma (KUD Makmur Lestari - Suka Mulya smallholders group Block E10); Quantity 4.930 Kg; with Delivery note: RRKE/TBS/01/13/10/2747). Weight bridge Card completed with “Mass Balance Stamp”

Non-certified FFB - Delivery note (No. 1489/KHSX/10/2013) dated October 25th, 2013, FFB came from Khairuddin Siregar Plamboyan

village; Quantity of 9.000 Kg (500 bunches); Vehicle Number BM 8290 AJ. Delivery note did not completed with “Mass Balance Stamp”

- Weight bridge Card (No. A114457 029460) dated October 25th, 2013, FFB came from Khairuddin Siregar Plamboyan village; Quantity of 9.280 Kg; Delivery Note KHSX/TBS/01/13/10/1489; Weight bridge Card did not completed with “Mass Balance Stamp”


2.2

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

There is no change in SCCS procedure. Consistently in SPO stated that the identification and traceability (PT RJP-RRMM/SOP/01) that PT RJP is committed to report to the Certification Body if CPO production exceeds the projected claim product. Since Rama-Rama POM get the RSPO certificate (January 12nd, 2012), there has been no sale on certified Mass Balance CPO products, resulting the production of CPO was still under budget (not exceed the target projection).

CPO production for period January to September 2013:

Actual: 36.938 Tons; Budget: 48.696 Tons.


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.

The entire record and reports have been made and completely stored by company. The Document storage system in soft copy is using the System Application Program (SAP) and document storage system in hard copy (print out) is stored inside the cupboard in the administration room of Rama-Rama POM


3.2


ASSESSMENT REPORT


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

There is no change in the supply chain procedures. In the identification and traceability procedure (PT RJP-RRMM/SOP/01) stated that shelf life for the entire record or report from received FFB in mill, oil palm processing, storage of CPO product, Palm Kernel and CPO product delivery is 10 (ten) 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. Record on accepted FFB and CPO production, CSPO and non-CSPO Kernel were documented in the Mass Balance Report for SCCS.

Periode Certified FFB

Non-Certified FFB

CSPO Non-certifiedCP

O

Certified PK Non-CertifiedP

K

CSPO Delivery

Jan-Mar 47,278.77 5,804.22 9,499.34 1,165.07 2,687.68 329.12 -

Apr-Jun 47,775.77 8,889.10 9,282.31 1,725.74 2,448.98 455.25 -

Jul-Sep 64,348.42 13,871.32 12,451.72 2,693.43 3,371.94 728.34 -

Unit: ton

Pengiriman Produk

Periode CPO Delivery CSPO ISCC Non-Certified

Jan-Mar - 10,937.48 1,400.65

Apr-Jun - 9,145.98 1,498.26

Jul-Sep - 12,372.97 3,254.93

Unit: ton

b. Delivery of products (CPO and PK) has been using the SAP application system with a calculation that in accordance with the procedure.

c. Since Rama-Rama POM get RSPO certification (January 12nd, 2012), there has been no sale on certified Mass Balance CPO products, resulting the production of CPO was still under budget (not exceed the target projection).


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

Since Rama-Rama POM got an RSPO certification (January 12nd, 2012), there has been no sale for certified Mass Balance palm oil products, Rama-Rama POM also do not perform direct sales, CPO delivery from mill to bulking station belong to Group companies (SMART). But in CPO delivery note, Rama-Rama POM has delivery sample or simulation that claimed as "Mass Balance" if there is a certified products demand for (CSPO).


3.5 In cases where a mill outsources activities to an independent palm kernel crush, the crush still falls under the responsibili ty 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.

Rama Rama Mill did Palm Kernel processing in Rama rama KCP station (RRMK). RRMK capacity is 150 tons / day. Palm


ASSESSMENT REPORT


kernel came from RRMM (Rama Rama Mill), NSAM (Naga Sakti Mill), KJGM (Kijang Mill). NSAM and KJGM was mill within the same group company.

Status: Not Applicable

4 Sales and goods out

4.1

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

(a) The name and address of the buyer

(b) The date on which the invoice was issued

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

(d) The quantity of the product delivered

(e) Reference to related transport documentation

Since Rama-Rama POM got an RSPO certification (January 12nd, 2012), there has been no sale for certified Mass Balance palm oil products, Rama-Rama POM also do not perform direct sales, CPO delivery from mill to bulking station belong to Group companies (SMART). Please find below sample of delivery note:

- Sales Contract CPO (No. XIC/2150/130313/0001) from Rama-Rama POM to Bulking Station dated March 13rd, 2013:

• Buyer: GAI Singapore 118535

• Date: May 13rd, 2013

• Shipment: May 2013

• Product: CPO

• Quantity / Weight (Nett): 5,000,000 tons.

• Quality: FFA (5% max), Moisture & Impurities (0.25% max).

• Packaging: In Bulk

• Origin: Dumai, Indonesia

• Not completed with "Mass Balance Stamp" because delivery is not intended to fulfill RSPO certified demand.

Rama-Rama POM using Weight bridge system that integrated with SAP software.


5 Training

5.1

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

Rama-Rama POM has conducted training for entire personnel on Supply Chain Certification Systems procedure. Training has been done 2 times. Initial training was conducted on August 11th, 2011. During the surveillance, Rama-Rama POM able to show evidence of recent training that conducted on March 12th, 2012 in Meeting Room PC / RC Office which attended by entire Rama-Rama POM personnel. Based on interviews with Weight Bridge officer in Rama-Rama POM, FFB Weight Bridge Operator and CPO Weight Bridge Operators have been trained and knew the required procedures for supply chain.


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


ASSESSMENT REPORT


with the RSPO Rules for Communications and Claims.

This clause applied when conducting CPO/ CPO direct selling from CPO mill to the Buyer. Meanwhile in Sinarmas Group, CPO delivered to bulking station, and then the downstream team will perform a Trading. Thus, the RSPO Rules on Market Communication and Claim specified in a separate procedure at the downstream part and Sales Department.



ASSESSMENT REPORT


3.4. Conformity Checklist of Certificate and Logo Use

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

X or√

S-2 Perusahaan telah menerima bukti persetujuan/izin mengenai penggunaan sertifikat dan logo RSPO dari Lembaga Sertifikasi PT Mutuagung Lestari (No. Surat 099.19/MUTU/I/2012) untuk lingkup Kijang POM dan Nagasakti POM (PT Buana Wiralestari Mas), Rama-Rama POM (PT Ramajaya Pramukti).

√

Status: Comply as required. 2. Implementation of certificate and logo used by Client comply with size and type (shape)

against Guideline of Logo Use X or√

S-2 Not Applicable; Perusahaan tidak menggunakan logo baik di dalam produknya (on-product) dan bukan produk (off-product) di dalam ruang lingkup PT. BUANA WIRALESTARI MAS

NA


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

X or√


NA


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

X or√


NA



ASSESSMENT REPORT


3.5. Summary of RSPO Partial Certification.

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

2.1

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

X or√

Seluruh unit operasional dibawah organisasi (subsidiary) IVOMAS TUNGGAL direncanakan untuk melakukan proses sertifikasi sesuai dengan TIME BOUND PLAN. The entire units operating under the IVOMAS TUNGGAL organization (subsidiary) carry out the certification process according to TIME BOUND PLAN

Status:

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:

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:

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:

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:

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√

Seluruh unit operasional dibawah organisasi (subsidiary) IVOMAS TUNGGAL direncanakan untuk melakukan proses sertifikasi sesuai dengan TIME BOUND PLAN.


ASSESSMENT REPORT


The entire units operating under the IVOMAS TUNGGAL organization (subsidiary) carry out the certification process according to TIME BOUND PLAN

Status:

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:


ASSESSMENT REPORT


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

3.6.1 Identification of Findings, Corrective Actions and Observations at (S-1) Assessment

CAR No

Ref Std Finding Area Grade Time

Limits Corrective Action Observation Status

Closing Date

During ASA-01 carried out, all indicators had been fullfiled and appropriate with P&C standard.

3.6.2 Identification of Findings, Corrective Actions and Observations at (S-2) Assessment

CAR No

Ref Std Finding Area Grade Time


Closing Date

During ASA-01 carried out, all indicators had been fullfiled and appropriate with P&C standard.

3.6.3 Identification of Findings, Corrective Actions and Observations at Stage-2 Assessment (ST-2) AMARTHA JAYA PLASMA DAN SUNGAI TAPUNG PLASMA (scheme

smallholders)

CAR No

Ref Std

Finding Area Grade Time


Closing Date

2012.01 Minor 4.4.1

Attempts to preserve natural water sources. Based on field observations in Block

Amarta Jaya

Plasma

Minor S-1 The company should ensure that the policies related to protection of water resources are well

Auditor team interviewed workers in Block H5/I5 fertilizer related procedures fertilizer

Closed 29 Oct 2013


ASSESSMENT REPORT


H5/I5 riparian Lembu River found that fertilizer application does not conform to the policy of farmer organizations (cooperatives).

implemented in the field. application near water sources. The workers demonstrated in accordance with the cooperative policy. These nonconformities can be CLOSED.

2012.02 Minor 4.7.4

Occupational Safety Equipments. Based on field observations in Block G-06 (KUD Sibuak Jaya) were found that harvester used a broken Boot.

KUD Sibuak Jaya

Minor S-1 Farmer cooperative should be able to provide and give an adequate PPE for workers.

Based on interviews with Harvesting Foreman and Harvester in Block G-06, boots are used for harvester in good condition and suitable. These nonconformities can be CLOSED.

Closed 29 Oct 2013


ASSESSMENT REPORT


3.6.4 Opportunity for Improvement (S-2)

No Ref Std Descriptions

1 - Company might improve the evaluation on RSPO Principles and Criteria’s implementation.

2 Minor 4.4.1

Company might evaluate the examination result, if there is a test parameter that exceeds the quality standard

3 Minor 4.7.2

Company might conduct monitoring, evaluation and follow-up the periodic medical examinations results in order to protect personnel from Occupational Diseases.

4 Major 4.8.3 Minor 6.5.2

Company might improve the contractor’s performance by including the criteria of personnel competence and employment related aspects in evaluating contractor’s compliance.

5 Major 5.2.2

Company might improve the work performance related to fauna’s monitoring by evaluating Fauna monitoring method that has been done and completed the infrastructure of wildlife monitoring

3.6.5 Noteworthy Positive Components (S-2)

No Ref Std Descriptions

1 Kriteria 4.7

Ramarama mill has been certified with SMK3 Gold Flag since May 4th, 2010.

2 Minor 6.5.1

Company has provided public facility such as the Smart House which is a program from United Indonesia Cabinet Wives Solidarity Volume II, chaired by First Lady Ani Yudhoyono and in cooperation with PT. SMART, Tbk. Smart House is a non-formal education facilities devoted to children and mothers in plantation area and surrounding communities.

3 Minor 6.1.4

Relationships and special attention to plasma smallholders made a very good change. This can be seen by placing an assistant and foreman for each KUD, fertilizer loans without interest, replanting savings, trainings to increased plasma stallholder’s competence, etc.

4 Kriteria 8.1

Has received an ISCC (International Sustainability and Carbon Certification) certificate since February 3rd, 2012 by GUTCert.


ASSESSMENT REPORT


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

Public Issues (Institution/ NGO/Community)

Management Responses Auditor Responses

October 22nd, 2013

National Land Office of Kampar District

Head of Sub Section of Land Arrangement

Positive aspects:

- The entire area of the Company has had a business license.

- Company has provided compensation and “sago hati” to the owner of plantations within company concession area.

- There is no overlapping between business license areas with mining. The BPN will not issue a business license on red line (mining area) concession area.

Negative aspects: There is no negative aspect.

- Retained based on business license area that issued by the BPN

- The “sagu hati” compensation awarded to the owner of plantations within company concession area

- As per company’s business license

Coordination and communication with stakeholders will be retained to maintain the harmonization and business continuity of management unit of PT Ramajaya Pramukti.

October 22nd, 2013

Forestry Agency of Kampar District (Head of PPKH division)

Positive aspects:

- Company has had a business license.

- There are no protected forest or KBK been overlapping with company concession area.

- Provincial spatial plan for Riau Province has not been approved by the Minister of Forestry of Republic of Indonesia.

- As defined by BPN - Retained

- Company is waiting for provincial spatial plan approval from the Minister of Forestry of Republic of Indonesia

Coordination and communication with stakeholders will be

retained to maintain the harmonization and business

continuity of management unit of PT Ramajaya Pramukti.


ASSESSMENT REPORT




Negative aspects: There is no negative aspect.

October 29th, 2013

Head of Sari Galuh village and Chairman of Majapahit cooperative (KUD).

Positif Aspect:

a. This village is formerly developed from transmigration program by government (PIR TRANS) which under PTPN V management. Their village area is bordering with PT Ramajaya Pramukti.

b. In general, the relationship between the company and the village has been going well and communication running smoothly.

c. There was no a case of land conflicts between companies and communities of Sari Galuh Village.

d. The villagers always been involved by company in the deliberation of the village development plan for each year.

e. The positive impact of the existence of the company is the development of plasma PIR TRANS as the source of community income generating.

f. Another aid from company was public facility, Health (Mass Circumcision) and salary support for education personnel/scholarship (partnership with Bogor Agriculture Institute and INSTIPER).

g. Members of plasma farmers always get an update regarding the FFB price

- Retained and keep the harmonious relationship with the Village

- Retained and keep the harmonious relationship with the Village

- Retained

- Communities have a good livelihood and plasma smallholders were prosperous.

- Retained in accordance with actual condition and need

- Retained and transparently pricing of FFB by involving the small holder of representative

- Retained in accordance with actual condition and need

- Retained and continued training as needed

- Replanting preparation programs retained according to program and conditions

- The request to join plasma program will be submitted to





ASSESSMENT REPORT




h. Plasma development has an important contribution in rural growth through dues charged to farmer and the share of net income allocated by KUD for rural development.

i. The Company has conducted socialization and training related to management certification of Palm oil plantation participated byKUD boarder / Farmers Group.

j. Farmers have prepared next replanting activities by utilizing replanting account. Sometimes it involved company or Bumiputera insurance.

k. Some communities who haven’t join to plasma program want to propose them self to be participant of this program

Negative Aspect: There is no negative aspect.

management in order to get response

October 23rd, 2013

ELANG FOUNDATION

No issues related to PT BWLM and PT RJP




October 29th, 2013

Chairman of Employees Cooperative RAMA SEJAHTERA

Positive Aspects:

a. This cooperative was established since 1995 with bussiness scope on loan, minimarket and FFB transportation services.

- In accordance with legal status of cooperative of Rama


ASSESSMENT REPORT




b. This institution had legal entity and registered in Cooperative Agency, Kampar District.

c. Amount of cooperative members are 483 people per September 2013.

d. In cooperation with the company in the form of installment loans through payroll deductions for members of the cooperative.

Negatives Effect:

-

Sejahtera which has registered in Kampar District.

- In accordance with a list of the number of cooperative members Rama Sejahtera Employees

- Retained

Coordination and communication with stakeholders will be retained to maintain the harmonization and business continuity of management unit of PT Ramajaya Pramukti.

October 29th, 2013

Chaiman of PUK SPPP-SPSI Rama-rama Estate

Positive Aspects:

a. The number of members of PUK SPPP – SPSI Rama-rama Estate per september 2013 was 424 people.

b. Board regular meeting is conducted once in 3 months. c. Employee who involve as Worker UnionI Boarder never

have complaint about working relation with PT. RJP. d. There was no dispute between employee and PT. RJP

regards to working relation e. Company has given the right of employee such as

implementation of UMSP, providing social security, medical security in form of health care acces. Regularly medical check up once in six months for employee who have high risk in their working environment, any other facilities (Housing, Electricity, labor tools, access to clean water,

- The amount of those members was in accordance with the list of registered members in PUK SPPP Rama-rama Estate

- In accordance with the schedule of meetings that has been approved.

- Retained in order to keep harmonious relationship.

- Retained

- Retained





ASSESSMENT REPORT




sports, school, etc) f. LKS Bipartit has been formed as a medium to resolved

problem related to industrial relations between company and employees.

g. There is no indication of company to discriminate the employees.

Negative aspects:

-

- Retained

- Retained

October 29th, 2013

Chairman of Cooperative Jaya Bersama :

Positive Aspect:

a. Personnel Cooperative of Jaya Bersama was formed since 2008, which has focused in saving and loan. It already has legal status and registered in Cooperative Agency of Kampar District.

b. The number of members per september 2013 was 67 people.

c. In cooperation with the company in the form of installment loans through payroll deductions for members of the cooperative.

Negative Aspects:

-

- Retained

- In accordance with a list of the number of members of cooperatives

- Retained




October 29th, 2013

Chaiman of PUK SPPP-SPSI Rama-rama Mill

Positive Aspects:

a. The number of members of PUK SPPP – SPSI Rama-rama Mill per September 2013 was 192 people.



ASSESSMENT REPORT




b. Board regular meeting is conducted once in 3 months. c. Employee who involve as Worker Union Boarder never

have complaint about working relation with PT. RJP. d. There was no dispute between employee and PT. RJP

regards to working relation e. Company has given the right of employee such as

implementation of UMSP, providing social security, medical security in form of health care acces. Regularly medical check up once in six months for employee who have high risk in their working environment, any other facilities (Housing, Electricity, labor tools, access to clean water, sports, school, etc)

f. LKS Bipartit has been formed as a medium to resolved problem related to industrial relations between company and employees.

g. There is no indication of company to discriminate the employees.

Negative aspects:

-

- The amount of those members was in accordance with the list of registered members in PUK SPPP Rama-rama Mill

- In accordance with the schedule of meetings that has been approved.

- Retained in order to keep harmonious relationship.

- Retained

- Retained

- Retained

- Retained




ASSESSMENT REPORT


4.0 CERTIFIED ORGANISATION'S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Sign-off of Assessment Findings

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

Signed on behalf of:

PT. BUANA WIRALESTARI MAS MUTUAGUNG LESTARI

Head of Environmental Departement Lead Auditor RSPO

Ismu Zulfikar Yudwi Wisnu Rahmanto

23/October/2013 23/October/2013


ASSESSMENT REPORT


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

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

Date of Contact

1 Kantor Pertanahan Nasional,

Kab. Kampar

Bangkinang, Kabupaten Kampar, Riau - Direct visit

22 October

2013

2 Dinas Kehutanan, Kab.

Kampar

Bangkinang, Kabupaten Kampar, Riau - Direct visit

22 October

2013

3 Desa Sari Galuh Kec. Petapahan, Kab. Kampar - Direct visit

29 October

2013

4 Serikat Pekerja Rama-Rama

Estate & Mill

Kec. Petapahan, Kab. Kampar - Direct visit

29 October

2013

5 YAYASAN ELANG Pekanbaru, Riau 081371302269 By phone call

23 October

2013

6 Koperasi Karyawan Rama

Sejahtera

Rama-rama Estate, Kec. Petapahan, Kab. Kampar - Direct visit

29 October

2013

7 Koperasi Karyawan Jaya

Bersama

Rama-rama POM, Kec. Petapahan, Kab. Kampar - Direct visit

29 October

2013


ASSESSMENT REPORT


Appendix 2 Assessment Program

Date

28th – 31st October 2013

PLANNED TIME

ACTUAL DURATION

PROCESSES / CLAUSES TO BE AUDITED AUDITOR

Mon, 28th Oct 2013

07.00 – 08.00 am

8 – 12 am

12 – 2 pm

2 – 5 pm

07.00 – 08.00

8 -12 am

12 – 2 pm

2 – 5 pm

RAMA RAMA POM: Rama rama Estate (Nucleus), Amarta Jaya Plasma, Sungai Tapung Plasma (smallholder scheme)

Traveling from PT. BWL to PT. RJP

Field Observations:

Rama-rama Estate: - Legal boundary, HCV management area, land fire - Manuring, Spraying, Harvesting, IPM, Workers safety - Workers facilities (housing, worship, health care, school, union, etc.) - Waste management (landfill, sanitary)

Rama-rama Mill: Mill Processing, OHS Implementation, POM waste management (hazardous, emission, pollution, POME, etc.), Water management.

AMARTA JAYA PLASMA (smallholder scheme)

Mekar Jaya: - Legal boundary, HCV management area, land fire - Manuring, Spraying, Harvesting, IPM, Workers safety - Facilities & Waste management

SUNGAI TAPUNG PLASMA (smallholder scheme)

Field Observations of scheme smallholders:

Tunas Makmur: - Legal boundary, HCV management area, land fire - Manuring, Spraying, Harvesting, IPM, Workers safety - Facilities & Waste management

Lunch break

Verification of ASA-1 findings and completing checklist

ALL TEAM

SL, NM, SM

NK

RR

YWR

ALL TEAM

Tue, 29th Oct 2013

8 – 12 am

12 – 2 pm

2 – 5 pm

8 – 12 am

12 – 2 pm

2 – 5 pm

AMARTA JAYA PLASMA (smallholder scheme)


Makmur Lestari: - Legal boundary, HCV management area, land fire - Manuring, Spraying, Harvesting, IPM, Workers safety - Facilities & Waste management

SUNGAI TAPUNG PLASMA (smallholder scheme)


Karya Tani: - Legal boundary, HCV management area, land fire - Manuring, Spraying, Harvesting, IPM, Workers safety - Facilities & Waste management

Lunch break

Verification of field visit findings and completing checklist

RR

YWR

SL, NM, NK, SM

Wed, 30th Oct 2013

8 – 12 am

12 – 2 pm

4 – 5 pm

8 – 12 am

12 – 2 pm

4 – 5 pm

Verification of field visit findings and completing checklist at location

Lunch break

Closing meeting at location

YWR, NK, SL

NM, RR, SM


ASSESSMENT REPORT


Date

28th – 31st October 2013

PLANNED TIME

ACTUAL DURATION

PROCESSES / CLAUSES TO BE AUDITED AUDITOR

Thu, 31st Oct 2013

8 – 12 am

12 – 2 pm

2 – 5 pm

8 – 12 am

12 – 2 pm

2 – 5 pm

Closing Meeting

Lunch break

Return to Jakarta

ALL TEAM


ASSESSMENT REPORT


Appendix 3 Glossary

AJYP : Amarta Jaya Plasma

AMDAL : Analisis Mengenai Dampak Lingkungan

APAR : Alat Pemadam Api Ringan

APD : Alat Pelindungan Diri

B3 : Bahan Beracun dan Berbahaya

BLHD : Badan Lingkungan Hidup daerah

BOD : Biological Oxygen Demand

BPN : Badan Pertanahan Nasional

CPO : Crude Palm Oil

DAS : Daerah Aliran sungai

FFB : Fresh fruit Bunch

GRK : Gas rumah Kaca

HCV : High Conservation Value

HGU : Hak Guna Usaha

HIRARC : Hazard Identification Risk Assessment and Risk Control (Identifikasi Resiko Bahaya, Penilaian, dan Pengendalian Resiko Kecelakaan)

IK : Instruksi Kerja

IPAL : Instalasi pengolahan Air Limbah

RSPO : Roundtable on Sustainable Palm Oil

IUP : Ijin Usaha Perkebunan

IUP-B : Izin Usaha Perkebunan untuk Budidaya

IUP-P : Izin Usaha Perkebunan untuk Pengolahan

JAMSOSTEK : Jaminan Sosial Tenaga Kerja

K3 : Keselamatan dan Kesehatan Kerja

KER : Kernel Extraction Rate (Rendemen Kernel)

KUD : Koperasi Unit Desa

LB3 : Limbah Bahan Beracun dan Berbahaya

NKT : Nilai Konservasi Tinggi

OER : Oil Extraction Rate (Rendemen Minyak Kelapa Sawit)

P2K3 : Panitia Pembina Keselamatan dan Kesehatan Kerja

PHT : Pengendalian Hama Terpadu

PK : Palm Kernel (Inti Sawit)

PKB : Perjanjian Kerja Bersama

PKO : Palm kernel Oil

PKS : Pabrik Kelapa Sawit

POM : Palm Oil Mill

RRME : Rama Rama Estate

RKL/RPL : Rencana Kelola Lingkungan/ Rencana Pemantauan Lingkungan

SCCS : Supply Chain Certifications System

SMK3 : Sistem Manajemen Keselamatan dan Kesehatan kerja

SOP : Standart Opeartional Prosedur

STPA : Sungai Tapung Plasma

TBS : Tandan Buah Segar


ASSESSMENT REPORT


Appendix 4 List of Smallholder Members No Unit of cooperatives Location Members/

farmers Planted

(Ha) Year of

Planting Production

(tonnes/Ha/year) Yield

(tones/Ha) Sample taken (year)

AMARTA JAYA PLASMA Smallholders

1 KUD Makmur Lestari Kenantan Village, Tapung Hilir Sub-district, Kampar Regency, Riau Province

500 1,000.00 1991, 1992 26,533.02 26.53 2013

2 KUD Sibuak Jaya 533 1,066.00 1991, 1992 29,766.37 27.92 2012

3 KUD Muara Mahat 457 914.00 1993 26,719.21 29.23

4 KUD Mekar Jaya 482 964.00 1993 26,301.75 27.28 2013

5 KUD Mukti Lestari 241 482.00 1993, 2001 14,002.42 29.05 2012 Sub-total A 2,213 4,426.00 123,322.77 27.86

SUNGAI TAPUNG PLASMA Smallholders

1 KUD Karya Tani Suka Maju Village, Tapung Hilir Sub-district, Kampar Regency, Riau Province

420 840.00 1996 27,489.43 32.73 2013

2 KUD Tunas Makmur 580 1,160.00 1996 38,920.02 33.55 2013

3 KUD Cinta Damai 629 1,257.50 1995, 1996 36,485.12 29.01

4 KUD Bangun Desa 835 1,671.00 1995, 1996 48,141.21 28.81 2012

5 KUD Berkat Lestari 328 656.50 1995, 1996 19,396.86 29.55 2012

Sub-total B 2,792 5,585.00 170,432.64 30.52

GRAND TOTAL 5,005 10,011.00 293,755.41

· 2014-11-02 · PT MUTUAGUNG LESTARI ASSESSMENT REPORT SPO – 4006a.5 Prepared by RAMAMutuagung...

Documents

Transcript of · 2014-11-02 · PT MUTUAGUNG LESTARI ASSESSMENT REPORT SPO – 4006a.5 Prepared by RAMAMutuagung...