Initial [ ] Re-Assessment · PT. MUTUAGUNG LESTARI ASSESSMENT REPORT SPO – 4006a.5 Page 6...

PT. MUTUAGUNG

LESTARI

ASSESSMENT REPORT

Roundtable on Sustainable Palm Oil Certification Renewable Energy Directive RSPO – RED

[√] Initial [ ] Surveillance [ ] Re-Assessment

Plantation Management/Owner : PT. IVO MAS TUNGGAL

Plantation Name : Kijang POM, PT BUANA WIRALESTARI MAS

Location :

Sekijang Village, Tapung Hilir Sub district,

Kampar District, Province of Riau, Indonesia

Certificate Code : MUTU-RSPO/013

Date of certificate issue : -

Date of expiry of certificate : 16 January 2017

Assessment Assessment

Date PT. Mutuagung Lestari

Auditor Reviewed

by Approved

by

ST - 2 09 – 11

December 2013

Octo HPN Nainggolan (Lead Auditor); Abdul Rahman (Auditor);

Martinus Haryo Sutejonoto (Technical Expert)

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 Certification Body on:

ST - 2 2 January 2014 - -

http://www.mutucertification.com/

PT. MUTUAGUNG

LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 ii Prepared by Mutuagung Lestari for Kijang POM, PT Buana Wiralestari Mas – PT. IVO MAS TUNGGAL

TABLE OF CONTENT

FIGURE

Figure 1. Location Map of KIJANG ESTATE – PT BUANA WIRALESTARI MAS Figure 2. Operational Map of KIJANG KENCANA PLASMA

3 4

1.0 SCOPE of the CERTIFICATION ASSESSMENT

1.1 National Interpretation Used 6

1.2 Organization Information 6

1.3 Type of Assessment 6

1.4 Location of Plantations, Mill and Area Statement 6

1.5 Description of Supply Base 7

1.6 Dates of Plantings and Cycles 8

1.7 Tonnage Certified 8

1.8 Other Certifications 9

1.9 Time-Bound Plan for Other Management Units 9

2.0 ASSESSMENT PROCESS

2.1 Certification Body 11

2.2 Assessment Team 11

2.3 Assessment Methodology, Assessment Process and Locations of Assessment 12

2.4 Stakeholder Consultation and List of Stakeholders Contacted 15

2.5 Date of Next Surveillance Visit 15

3.0 ASSESSMENT FINDINGS

3.1 Summary of Assessment Report of the RSPO Certification 16

3.2 Identification of Findings, Corrective Actions, Observations and Opportunity for Improvement 50

3.3 Summary of Arising Issues from Public, Management and Auditor Responses 54

4.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Signing of Assessment Findings 58

APPENDICES

1. List of Stakeholders Contacted in the RSPO Certification Process 59

2. Assessment Program 60

3. Glossary 61

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 3 Prepared by Mutuagung Lestari for Kijang POM, PT Buana Wiralestari Mas – PT. IVO MAS TUNGGAL

Figure 1. Location Map of PT Buana Wiralestari Mas


ASSESSMENT REPORT


Figure 2. Operational Map of Buana Wiralestari Mas


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Figure 3. Operational Map of Kijang Mill, Kijang Estate and Kijang Plasma

PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 Prepared by Mutuagung Lestari for Kijang POM, PT Buana Wiralestari Mas – PT. IVO MAS TUNGGAL

1.0 SCOPE OF THE CERTIFICATION ASSESSMENT

1.1 National Interpretation Used RSPO – RED Requirements For Compliance With The EU Renewable Energy Directive Requirements

Version of 4 February 2013 (Approved by the RSPO Executive Board on 28th February 2013)

1.2 Organization Information

1.2.1 Company name PT BUANA WIRALESTARI MAS, subsidiary of PT IVO MAS TUNGGAL

1.2.2 Contact person Mohamad Pirabaharan

1.2.3 Company address Organization address: Sinarmas Land Tower 2, 30th Floor

JL. MH Thamrin No 51 Kav 22 Jakarta 10350 Indonesia

Site: Desa Petapahan, Kecamatan Tapung, Kab. Kampar.

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 - 17 June 2008

1.3 Type of Assessment

1.3.1 Scope of Assessment

Extension Scope of RSPO P&C Certification Kijang Palm Oil Mill, Kijang Mas Etate and Kijang Kencana Plasma (eight smallholders cooperatives)

1.3.2 Type of certificate Single

1.3.3 Company names listed in the certificate PT Buana Wiralestari Mas

1.3.4 Number of management unit 1 (one) Palm Oil Mill and 2 (two) Estates: Kijang Mas POM, Kijang Kencana Estate and Kijang Kencana Plasma

1.4 Locations of Mill, Plantations and Area Statement

1.4.1 Location of Mill

Name of Mill Location

GPS

Latitude Longitude

Kijang Mill Village of Sekijang, Sub-district of Tapung Hilir, District of Kampar, Riau Province, Indonesia

00 50' 00” S

1010 02' 41”

E

1.4.2 Location of Supply Base

Name of Supply Base Location GPS

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


ASSESSMENT REPORT


Latitude Longitude

Kijang Mas Estate Village of Sekijang, Sub-district of Tapung Hilir, District of Kampar, Riau Province, Indonesia

00 49' 59”

N

1010 02' 58”

E

Kijang Kencana Plasma Village of Sekijang, Sub-district of Tapung Hilir, District of Kampar, Riau Province, Indonesia

00 51’ 17”

N

1010 05’ 27”

E

1.4.3 Tenure

Private

State 2,310.38 Ha

Community 8,147.79 Ha

1.4.7 Area Statement Kijang Mas Estate Kijang Kencana Plasma TOTAL AREA

Total area 2,310.38 Ha 8,147.79 Ha 10,458.17 Ha

Mature area 2,149.96 Ha 8,147.79 Ha 10,297.75 Ha

Immature area - Ha - Ha - Ha

Mill - Ha - Ha - Ha

Unplanted area 31.83 Ha - Ha 31.83 Ha

Other area 19.27 Ha - Ha 19.27 Ha

Unplantable - Ha - Ha - Ha

Road, Bridges and housing 109.32 Ha - Ha 109.32 Ha

Nursery - Ha - Ha - Ha

Land Clearing (LC) - Ha - Ha - Ha

HCV 31.43 Ha - Ha 31.43 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 (%)

KIJANG 60 299,309,780 59,515,616 19.88 15,913,394 5.32 - -

* Production data on Kijang POM December 2012 – November 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)

%

KIJANG ESTATE (KJGE) 2,310.38 2,149.96 51,856.08 24.12 36,272.56 11.83

KIJANG KENCANA PLASMA

8,147.79 8,147.79 234,351.03 28.71 231,842.84 75.62

Makarti Buana Jaya 1,011.00 1,011.00 30,740.08 30.41 30,740.08 10.03

Berkat Ridho 700.00 700.00 18,656.47 26.65 18,656.47 6.09

Kijang Mas 774.00 774.00 21,681.34 28.01 21,681.34 7.07

Makmur Sejahtera 1,270.00 1,270.00 32,729.31 25.77 32,729.31 10.68

Panca Warga 1,224.79 1,224.79 35,334.05 28.85 35,334.05 11.52


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Budi Karya 999.00 999.00 30,286.68 30.32 29,051.86 9.48

Lestari Jaya 1,022.00 1,022.00 29,069.92 28.44 27,796.55 9.07

Manunggal Abadi 1,147.00 1,147.00 35,853.18 31.26 35,853.18 11.69

GRAND TOTAL 10,458.17 10,297.75 286,207.11 26.44 268,115.40 87.45

* Production data on October 2012 – September 2013

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)

%

NAGASAKTI ESTATE

- Kec. Tapung Hilir, Kab. Kampar, Propinsi Riau

5,037.51 139,964.19 1,185.45 0.37

NAGAMAS ESTATE


4,988.48 139,491.20 108.17 0.04

RAMABAKTI ESTATE


2,706.28 73,609.36 626.99 0.20

Other - - 36,556.55 36,556.55 11.92

TOTAL 12,732.27 389,621.30 38,477.16 12.53

* Production data on October 2012 – September 2013

1.5.4 Product categories FFB/CPO/PK/PKO

1.6 Dates of Plantings and Cycles

1.6.1 Age profile of planted palms*

Planting Year

Hectarages (Ha) Total

KIJANG ESTATE Kijang Kencana Plasma Total

1991 244.20 369 613.2

1992 1,832.44 2,339 4,171.44

1993 22.82 3,185 3,207.82

1994 1.467 1.467

1995 504,8 504,8

1996 46.86 58 104.86

1997 52,7 52,7

1998 47,3 47,3

2001 3.64 124,99 128.63

TOTAL 2,149.96 8.147,79 10,297.75

1.6.2 New Planting area after November 2007 - Ha

1.6.3 Planting Cycle 1st 25 Years

1.7 Approximate Tonnage Certified for RSPO-RED

1.7.1 Past Annual Claim Certified Product

FFB Production - Tonnes/year

CPO Production - Tonnes/year

Palm Kernel (PK) Production - Tonnes/year

Palm Kernel Oil (PKO) Production - Tonnes/year


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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)

KIJANG ESTATE (KJGE) 2,310.38 2,149.96 53,749 25

KIJANG KENCANA PLASMA 8,147.79 8,147.79 236,286 29

Makarti Buana Jaya 1,011.00 1,011.00 30,740.08 30.41

Berkat Ridho 700.00 700.00 18,656.47 26.65

Kijang Mas 774.00 774.00 21,681.34 28.01

Makmur Sejahtera 1,270.00 1,270.00 32,729.31 25.77

Panca Warga 1,224.79 1,224.79 35,334.05 28.85

Budi Karya 999.00 999.00 30,286.68 30.32

Lestari Jaya 1,022.00 1,022.00 29,069.92 28.44

Manunggal Abadi 1,147.00 1,147.00 35,853.18 31.26

TOTAL 10,458.17 10,297.75 290,035 28.16

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 (%)

KIJANG POM 60 290,035 58,007 20 15,372 5.3 - -

1.8 Other Certifications

1.8.1 ISO 9001:2008/ISO 14001: 2004 -

1.8.2 OHSAS 18001:2007 -

1.8.3 HACCP -

1.8.4 Others ISCC (International Sustainable Carbon Certification)

Certificate number EU-ISCC-Cert-DE104-07781410 for Kijang Mill. ISCC EU registration number: ISCC-Reg-1107. The certified system user ia a First gathering point, Oil mill. The audit includes the raw material of oil palm. The certificate is valid until 31 January 2015.

Certificate number EU-ISCC-Cert-DE104-077811408 for Kijang Kencana Plasma. ISCC EU registration number: ISCC-Reg-1104. The certified system user is a Central Office (farmer group). The audit includes the raw-material of oil palm. The certificate is valid until 31 Januari 2015.


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2.0 ASSESSMENT PROCESS

2.1 Certification Body

PT Mutuagung Lestari

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

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

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

2.2 Assessment Team

2.2.1 Lead Assessor and Assessment Team

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

2. Abdul Rahman (Auditor). Bachelor of Environmental Engineering, Islamic University of Indonesia and Master of Management & Utilization of Waste, Gadjah Mada University. He has experience in mitigation of greenhouse gas emissions. He was listed as the Social Carbon Validator for a carbon project in Indonesia. During this time he was active in various seminars and forums for the development of standards and methodology of greenhouse gases in Indonesia. In addition he has experience as document drafting team effort Environmental Management and Environmental Monitoring Effort (UKL – UPL). He has been involved in water sampling methodology and analysis training, waste management training,and auditor training ISO 9001 and 14001.

3. Martinus Haryo Sutejonoto (Technical Expert). Hold a Degree on Chemical Engineering from the University of Diponegoro. Expert in Certification and Management Systems, especially in wastewater management in Chemical Engineering Process, Mass and Energy Balance, Food Processing Technology, Waste Water Treatment including knowledge on environment regulation in Indonesia, Methane Capture Technology, GHP, GMP, ISO 9001, ISO14001, ISO14064, ISO18001, ISO 22000, ISCC (International Sustainable and Carbon Certification), RSPO SCCS, the ISPS Code, CDM (Clean Development Mechanism), Insurance Risk Management. During the present assessment of RSPO RED, acting as an expert.

4. Sofyan Hadi Lubis (Observer). Master of Science in Natural Resources Management and Environment, Institutut Pertanian Bogor (IPB). Participated in several environmental management workshops, climate change mitigation training and adaptation for agricultural productivity in Southeast Asia, Carbon Forum Asia Update and EIA lecture. He has also been involved as a research team at the Centre for Research, Development, and Climate Change Policy (Puspijak) Ministry of Forestry of Indonesia - Bogor and Research Team in cooperation program IPB - ETH Zurich Switzerland - NUS Singapore. Furthermore, he also worked as a staff environmental / agricultural consulting firm.

2.3 Assessment Methodology, Assessment Process and Locations of Assessment

2.3.1 Figure of person days to implement assessment

Number of auditors : 2 (five) auditors Number of days for ST-2 on site : 3 (three) days Number of working days for S-2 on site: 6 (six) working days

2.3.2 Detail process of assessment

http://www.mutucertification.com/

mailto:[email protected]


ASSESSMENT REPORT


The assessment is done by measuring the adequacy level on the implementation and the consistency undertaken by PT BUANA WIRALESTARI MAS on the RSPO-RED Requirements for Compliance with the EU Renewable Energy Directive Requirements Version of February 4th, 2013 (Approved by the RSPO Executive Board on February 28th, 2013). The assessment was carried out with three methods: (1) Documents review, in order to observe the adequacy of the documentation fulfillment (2) Interview, in order to get more detailed information on company’s performance (3) Field observations, in order to make observations on the implementation of conformity’s standard in the management units. Some opportunities for improvement from the assessment have been submitted by the MAL auditor to management units and the result will become parts of observation material for the next visit. The assessment program can be found in Annex 2.

2.3.3 Locations of Assessment

PT Buana Wiralestari Mas has 2 (two) mills (Kijang POM and Nagasakti POM) however the scope of certification in

Kijang mill and supplied from Kijang Mas estate and Kijang Kencana Plasma estate with eight cooperatives (Makarti

Buana Jaya, Berkat Ridho, Kijang Mas, Makmur Sejahtera, Panca Warga, Budi Karya, Lestari Jaya and Manunggal

Abadi).

This report will elaborate the scope of audit, how to take audit samples, and reasons of sample choice.

As a guideline: Sample locations were determined by Auditor Team based on: 1. The chosen location represents each operational area (using the formula √y to representing each location) 2. Consideration of arising issues based on crucial and fundamental document. Based on this formulation, the chosen estate samples for the assessment are Kijang Mill, Kijang Estate and Kijang Kencana Plasma with three cooperatives samples taken (Kijang Mas Cooperative, Berkat Ridho Cooperative and Letari Jaya Cooperative). Locations visited are shown in details below: Kijang Mill: Location 1. Weight Bridge station in Kijang Mill. The audit team conducting the observation and interview with

personnel regarding the implementation of SOP that related to RSPO RED. Location 2. Security Post in Kijang Mill. The audit team conducting the observation and interview with the security

officer regarding the implementation of SOP that related to RSPO RED. Location 3. Fuel Storage in Kijang Mill. Documentation check and interview with the storage officer regarding the

record of fossil fuel used by the company. Kijang Mas Estate

Location 4. Diesel Fuel Storage, Documentation check and interview with the storage officer regarding the record of fossil fuel used by the company.

Location 5. Fertilizer Warehouse, Documentation check and interview with the warehouse officer regarding the record of fertilizer that used by the company.

Dumai Bulking Storage Station:

Location 6. Weight Bridge Station. Auditor undertaken interview with the weight bridge operator related to the implementation of RSPO-RED administration.

Location 7. Administration staff and Security Post. Auditor undertaken interview with the security officer related to the implementation of RSPO-RED.

Location 8. Kijang Mas Cooperative. Interview with Head and Secretary of Cooperative regarding the implementation of Green House Gas Calculation. Observation at Block W-20 regarding the youngest oil palm plantation in the cooperative area, plant on 1992


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Location 9. Berkat Ridho Cooperative. Interview with Head and Secretary of Cooperative regarding the implementation of Green House Gas Calculation. Observation at Block C-47 regarding the youngest oil palm plantation in the cooperative area, plant on 1996

Location 10. Lestari Jaya Cooperative. Interview with Head and Secretary of Cooperative regarding the execution of Green House Gas Calculation. Observation at the youngest oil palm plantation in the cooperative area, plant on 2001

2.4 Stakeholder Consultation and List of Stakeholders Contacted

2.4.1 Summary of stakeholder consultation process.

Public consultation process has been carried out. Stakeholder’s consultation of PT Buana Wiralestari Mas was held by public consultant with district agencies by conducting interviews. Numbers of inputs from stakeholders both positive and negative were received by the audit team as a material of consideration and observations in the Initial assessment. The consultation result is presented on 3.6 (Summary of Arising Issues from Public, Management and Auditor Response)

2.4.2 List of stakeholder contacted

Please find appendix 1

2.5 Determining Next Visiting

The next visit (first surveillance) will be determined together with RSPO P&C Surveillance assessment (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 PT Buana Wiralestari Mas subsidiary of PT Ivo Mas Tunggal operation consisting of one mill (Kijang Palm Oil Mill) and two oil palm estates (Kijang Mas estate and Kijang Kencana Scheme Smallholders).

During the assessment, there was no nonconformity identified assigned against RSPO-RED requirement.

MUTUAGUNG LESTARI found that Kijang POM, PT Buana Wiralestari Mas subsidiary of PT Ivo Mas Tunggal comply

with the requirements of RSPO-RED Requirements for compliance with the EU Renewable Energy Directive

requirement. Therefore MUTUAGUNG LESTARI recommends a certificate of compliance is issued.

RSPO Ref. HASIL VERIFIKASI MUTU-Certification Status

R 1. Producers whose land was under oil palm cultivation in January 2008, and who wish to comply with sustainability standards in the EU Renewable Energy Directive shall meet the following requirements in addition to the existing guidance under the RSPO Principles & Criteria:

R 1.1 There is evidence that the land was under palm oil production in January 2008.

R 1.1.1 Records indicating the land use in January 2008 shall be kept.

Land usage by PT BWL – Kijang Estate and Kijang Plasma indicated by: 1. KIJANG ESTATE.

a. LAND SAT IMAGE MAP 5 & 7 ETM 543 AREAL PT. BUANA WIRALESTARI MAS KIJANG ESTATE (KJNE) with a scale of 1:50.000 (Mercater projection, Grid Geographic System, Datum WGS 84),which comes from:

Land sat Image 7 ETM path row 127/59 taped at October 15th, 2010

Land sat Image 7 ETM path row 127/60 taped at June6th, 2009

Land sat Image 5 ETM path row 127/59 taped at June 19th, 2005

Land sat Image 5 ETM path row 127/60 taped at July5th, 2005

b. OVERLAY MAP OF PLANTATION AND THE STATUS OF FOREST WITHIN THEAREA OF PT. BUANA WIRALESTARI MAS KIJANG ESTATE (KJNE), Kampar district, Riau Province with a scale of 1:50.000 (Mercater Projection, Grid Geographic System, Datum WGS 84), with information (Huge plantation area belong to the state/ Private covering an area of 2.113,02 Ha and wetland agriculture area covering an area of 180,36 Ha) which comes from:

Location map of PT Buana wiralestari Mas of Kampar district, Riau province, Plantation Monitoring and Planning Division (PMNP), March 2011.

Map of Spatial planning for Riau Province on 2007-2026, scale of 1:550.000, Provincial Bappeda, Riau on 2007

Situation Map for framework of land used title No.01/1998 PT Buana wiralestari Mas, Kijang Estate (KJNE).

Situation Map for framework of land used title No.05/1991 PT Buana wiralestari Mas, Kijang Estate (KJNE)

2. KIJANG PLASMA. a. LANDSAT IMAGE MAP 5 & 7 ETM 543 AREAL of PT. BUANA WIRALESTARI MAS KIJANG

Complied


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ESTATE (KJNE) with a scale of 1:50.000 (Mercater Projection, Grid Geographic System, Datum WGS 84), which comes from:

Land sat Image 7 ETM path row 127/59 taped at October 15th, 2010



Land sat Image 5 ETM path row 127/60 taped at July 5th, 2005 b. OVERLAY MAP OF PLANTATION AND THE STATUS OF FOREST WITHIN THE AREA OF

PT. BUANA WIRALESTARI MAS KIJANG KENCANA PLASMA (KJNP), Kampar district, Riau Province with a scale of 1:50.000 (Mercater Projection, Grid Geographic System, Datum WGS 84), with information (Huge plantation area belong to the state/ Private covering an area of 5.114,16 Ha and wetland agriculture area covering an area of 3.342,32 Ha) which comes from:

Spatial planning map for Riau Province on 2007-2026, with a scale of 1:550.000, Provincial Bappeda, Riau on 2007

Plasma Map of PT Buana wiralestari Mas, Kijang Kencana Plasma, in 2011. Permit on releasing the forest area from the ministry of forestry No. 108/Kpts-II/1991 dated February 20th, 1991 regarding the release of some parts of forest area such as Tapung kanan River that covers an area of 23.312 ha which located in Kampar district of Riau Province for a plantation business on behalf of PT. Buana Wiralestari Mas. On the environment impact analysis document: PT BWL has had an environment document in a form of environment impact analysis document (EIA) which drafted on 1993 and has been agreed by the ministry of agriculture through letter no. IRC.220/889/B/V/1994 dated May 19th, 1994; the environment document includes the palm oil with a (PIR-TRANS) type and mill in Siak Hulu sub district, Kampar district, Riau Province. Scopes of the environment impact analysis document are a palm oil plantation in an area of 10.000 Ha, reserves in an area of 15.760 Ha and mill with a capacity of 60 Tones FFB/Hours. Based on EIA the proportion between nucleus and plasma is 20:80. The EIA document drafted on 1993 through collaboration between company with PT Indica Dharma Consultant. PT BUANA WIRALESTARI MAS - Kijang Estate has had a land used title as below: Kijang Plantation - Land used title certificate No: 01 dated November 16th, 1994, covers an area of 2.284,742 Ha.

(Decision letter of Land used title: 69/HGU/BPN/94 dated September 21st, 1994. Valid until (December 31st, 2029). Extension permit for the land used title is in accordance with decision letter from head of national land agency No: 174/HGU/BPN/2004 dated December 6th, 2004. The validity of the land used title is extended until (December 31st, 2089).

- Land used title certificate No: 01 dated March 17th, 1998, covers an area of 80 Ha (decision letter of Land used title: 3380/540/24.05/98 dated February 25th, 1998. Valid until (March 17th, 2033).

Total of land used title for PT BWLM is 12.567,96 Ha. Kijang Mill Kijang Mill: building used title No. 01 dated August 25th, 2004, covers an area of: 46.450 m2. (Decision letter of building used title from local office of national land agency No: SK.103/550/24.05/2004, valid until: August26th, 2034.

R 1.1.2 The status of the land in January 2008 shall be communicated to the next economic operator.

- Kijang Mas Estate and Kijang Kencana Plasma has communicated the information to the Kijang POM about the status of the land in January 2008. However, the Kijang Mas Estate is under the same unit

Complied


ASSESSMENT REPORT


with the next operator Kijang POM (PT. BWL) and the smallholder also bound with the contractual agreement with PT. BWL. The record has been shown from the supply base (Oil palm estates) inform of:

FFB Delivery Note (Surat Pengantar Buah) which explain the material origin and dated of delivery, planted year, number of bunch, etc.

The information is enough for the next economic operator to understand that the ffb produce from the land that already open before January 2008.

R 1.2 There is evidence that the land is not designated for nature protection purposes by law or by the relevant competent authority. There is evidence that the land is not designated for the protection of rare, threatened or endangered ecosystems or species recognized by international agreements or included in lists drawn up by intergovernmental organizations or the International Union for the Conservation of Nature, subject to the recognition of these organizations as outlined in Article 18(4) of the EU-RED.

R 1.2.1 Records indicating the status of the land in January 2008 shall be kept.

Observation result from the identification document of High Conservation Value (HCV); it is known that Management Unit of Kijang Mas Estate and Kijang Kencana Plasma in 8 cooperatives have no area that pointed as conservation area being cultivated with a oil palm plantation.

Complied

R 1.3 There is evidence that the land was not a wetland in January 2008. In case the land was a wetland in January 2008, there is evidence that the production of palm oil has not changed the nature and the status of the wetlands.

R 1.3.1 Records indicating the land status in January 2008 shall be kept.

Documents review and field observation; it is known that management unit has no function change on new area or wetland for the operational activity since January 2008, this can be explained in: Record shows that the operational area of PT BWL - Kijang Estate and Kijang Plasma is not a wetland, such as: SEMI DETAIL SOIL MAP. Review on Land Sustainable Classification (LSC) 2010 Kijang Mas Estate in PT Buana wiralestari Mas, Kampar District, Riau province with a scale of 1:40.000 (Universal Transverse Mercator projection, Zone 47 N, Datum WGS 84) which explains: 1. Soil classified as Typic Dystrudepts, sloping area of 3-9%, upper soil texture is loam, lower soil

texture is clayey loam, effective depth is>100 cm, depth of solum is >120 cm, drainage is well, land suitability class is S2 (appropriate, medium), the limiting factors are the texture and natural fertility, total area of 1.434,89 Ha (62,1%)

2. Soil classified as Typic Dystrudepts, sloping area of 9-16%, upper soil texture is loam, lower soil texture is clayey loam, effective depth is>100 cm, depth of solum is >120 cm, drainage is well, land suitability class is S2 (appropriate, medium), the limiting factors are the texture and natural fertility, total area of 168,57 Ha (7,3%).

3. Soil classified as Typic Endoaquepts, sloping area of 0-3%, upper soil texture is loam, lower soil texture is clayey loam, effective depth is 50-100 cm, depth of solum is >120 cm, drainage is quite well, land suitability class is S2 (appropriate, medium), the limiting factors are the texture and natural fertility, total area of 683,76 Ha (29,6%)

DEPTH REVIEW SOIL MAP, Area of PT Buanawira Lestari mas Kijang Kencana Plasma (KJNP), Kampar district, Riau province with a scale of 1:50.000 (Mercator projection, Grid Geographic System, Datum WGS 84) which describes:

Complied


ASSESSMENT REPORT


1. Soil classified as Humic Endoquepts, sloping area of 0-3%, upper soil texture is saprik, lower soil texture is sandy loam, effective depth is >100 cm, depth of solum is >120 cm, drainage is quite bad, land suitability class is S3 (marginal), the limiting factor is drainage, total area of 155,90 Ha (1,9%)

2. Soil classified as Typic Endoquepts, sloping area of 0-3%, upper soil texture is loam, lower soil texture is clayey loam, effective depth is >100 cm, depth of solum is >120 cm, drainage is quite bad, land suitability class is S3 (marginal), the limiting factor is drainage, total area of 1.644,52 Ha (20,2%).

3. Soil classified as Typic Endoquepts, sloping area of 0-3%, upper soil texture is sandy loam, lower soil texture is sandy loam, effective depth is >100 cm, depth of solum is >120 cm, drainage is quite bad, land suitability class is S2 (appropriate, medium), the limiting factor is drainage, total area of 325,24 Ha (4,0%).

4. Soil classified as Typic Dystrudepts, sloping area of 3-9%, upper soil texture is clayey sandy loam, lower soil texture is sandy loam, effective depth is >100 cm, depth of solum is >120 cm, drainage is well, land suitability class is S2 (appropriate, medium), the limiting factor is natural fertility, total area of 5.987,56 Ha (73,5%).

5. Soil classified as Typic Dystrudepts, sloping area of 9-16%, upper soil texture is sandy loam, lower soil texture is clayey loam, effective depth is >>100 cm, depth of solum is >120 cm, drainage is well, land suitability class is S2 (appropriate, medium), the limiting factor is natural fertility, total area of 27,53 Ha (0,3%).

6. Swamp area of 7 Ha From the document’s review and field observation, it is known that there is no wetland and peatland within the operational area of PT BWL, Kijang Estate and Kijang Plasma that opened after January 2008. Based on cultivation record within the operational area of Kijang Estate, it is known that the oldest plant year was in1991 and the youngest plant year was in 2001 which located in division 1 of Block W-20.

R 1.3.2 In case the land was a wetland, records of drainage depth shall be kept.

From the document’s review and field observation, it is known that there is no wetland within the operational area of PT BWL, Kijang Estate and Kijang Plasma that opened after January 2008. Please see the explanation on R 1.3.1.

Complied

R 1.4 There is evidence that the land was not a peatland in January 2008. In case the land was a peatland, there is evidence that the production of palm oil does not involve drainage of previously undrained soil. This means that for peatland that was partially drained in January 2008 a subsequent deeper drainage, affecting soil that was not already fully drained, would constitute a breach of the criterion.

R 1.4.1 Records indicating the status of the land in January 2008 shall be kept.

From the document’s review and field observation, it is known that there is no peatland within the operational area of PT BWL, Kijang Estate and Kijang Plasma that opened after January 2008”. Please see the explanation on R 1.3.1.

Complied

R 1.4.2 For peatlands, there shall be evidence that the production of palm oil does not involve drainage of previously undrained soil. Such evidence shall comprise of detailed drainage profiles/maps indicating drainage depth across the land considered, before and during oil palm cultivation.


Complied


ASSESSMENT REPORT


R 1.4.3 Records of drainage depth shall be kept.


Complied

R 2 Greenhouse gas criterion. One of the following options must be used to for the EU-RED greenhouse gas criterion:

R 2(v).a Use of a default value specified in Annex V of EU-RED, which complies with the 35% greenhouse gas reduction criterion specified in EU-RED (and the 50% greenhouse gas reduction criterion from 1 January 2017). For palm oil biodiesel and hydrotreated vegetable oil from palm oil, currently only default values assuming methane capture at palm oil mills comply with the 35% greenhouse gas reduction criterion (and 50% from 1 January 2017). In Annex V of EU-RED, the aggregated default value for cultivation, processing (including methane capture at palm oil mill), transport and distribution of palm oil biodiesel is set at 37 g CO2eq/MJ (equivalent to an actual greenhouse gas saving of 56%). The aggregated default value for cultivation, processing (including methane capture at palm oil mill), transport and distribution of hydrotreated vegetable oil is set at 29 g CO2eq/MJ (equivalent to an actual greenhouse gas emission saving of 65%). In order to use these default values, there shall be evidence that biogas capture from palm oil mill effluent (POME) is applied. Note: The default values in Annex V of EU-RED may be subject to change in future.

R 2(v).a.1 There shall be evidence that methane (biogas) capture from palm oil mill effluent (POME) is used.

PT. BWL has not used the biogas to catch methane from generated POME. Requirement not applicable as default values have not been used. Instead, actual values have been used.

Complied

R 2(v).a.2 Supply chain operators shall clearly communicate to the next economic operator that the default value option is being applied for the EU-RED greenhouse gas criterion. The relevant default value (g CO2eq/MJ) shall also be communicated to the next economic operator.

PT. BWL has not used the biogas to catch methane from generated POME. Requirement not applicable as default values have not been used. Instead, actual values have been used.

Complied

R 2(v).b Use of actual greenhouse gas values to calculate total greenhouse gas savings according to the EU-RED methodology.

R 2(v).b.1 Producers shall use an EC approved greenhouse gas methodology. The overview of EC approved methodologies can be found on: http://ec.europa.eu/energy/renewables/biofuels/sustainability_schemes_en.htm

PT. BWL implemented the RSPO RED by using the Methodology that stated in Annex V EU RED. During the assessment the auditors have checked the excel file which the management unit used for calculating the GHG and have verified that the calculation was correctly applied. The management unit staff is also able to demonstrate to the auditors how the GHG calculations were done and provide the data sources which was also verified by the auditors. From the Proof of Sustainability (PoS) form with number of identification ISCC-PoS-DE 104-07751201-024 informs us that there are using Art. 19, 2009/28/EC and this article is the EU RED Methodology. So this methodology is clear that there are using the proper methodology that conform RSPO RED.

Complied

R 2(v).b.2 Supply chain operators shall clearly communicate to the next economic operator which


ASSESSMENT REPORT


calculation methodology is being applied. Disaggregated (actual and default) greenhouse gas data shall be communicated to the next economic operator.

The used official emission comes from highest emission from each entity. Kijang Mill emission will sum up with emission from transport the CPPO amount 15,90 g CO2e / MJ to Dumai Bulking.

PT. BWL implemented the RSPO RED by using the Methodology that stated in Annex V EU RED. Disaggregated actual value used by PT. BWL (number of emission factor that has been set be multiplied with the actual data of field application).

During the assessment the auditors very satisfied with the calculation and the calculation is correct.

The auditors check that there are information to the next economic operator in the form of Proof of Sustainability (PoS) and there is information of GHG unit.

Company has an organization structure for RSPO RED activities that stated on the SO of management system of traceability of sustainable palm oil production and signed and approved by the top management. For instance in Kijang mill, there is a GHG officer and traceability officer whom responsible to handle the RSPO RED.

There is a job description for GHG Officer that has been signed and approved by top management, for instance Kijang mill, the main responsibility such as collecting supporting data for calculating the value of GHG mill; and collecting value data of the GHG from the supplier plantation of FFB and transport.

There is a term of reference for traceability officer that has been signed and approved by top management, for instance Kijang mill, the main responsibility is to monitor the product delivery (CPO/CPKO/Kernel) whether its sustain and non-sustain in accordance with requirement from ISCC, RSPO-SCCS based on report from weigh officer.

There is an SOP for accepting and loading the product, No. IMT-DMAB/SOP/01 which prepared by the document officer (leader team) and checked by unit head (MR) and approved by the General Manager (top management).

Related to delivery of information on RSPO RED, need to involved personnel. PT. BWL has undertaken the socialization, for instance socialization in Dumai Bulking. The attendance sheet for RSPO RED socialization at December 10th, 2013 in DMAB meeting room which delivered by unit head is available. Participant of this socialization is 13 people including security, oil track officer, WB officer, etc.

In addition to the socialization, PT. BWL also distributed the SOP of RSPO RED to related personnel, for instance: there is a document receipt form for local SOP that addressed to Weight Bridge on December 10th, 2013. The submitted SOP documents are SOP on receipt and production load (IMT-DMAB/SOP/01); SOP for the calculation of GHG (IMT-DMAB/SOP/05); and SOP for Weight Bridge (IMT-DMAB/SOP/06). Documents have been accepted by Monika Ginting, and Iqbal Haikal (document control officers).

Summary on the calculation of GHG

Disaggregated default value was not used (the assigned number).

Disaggregated actual value used by PT. BWL (number of emission factor that has been set be multiplied with the actual data of field application).

Combination between disaggregated default value and actual value was not used.

The used official emission comes from highest emission from each entity, for plantation emission will use the highest emission which comes from Berkat Ridho cooperative, amount 78,62 kg CO2e / tones FFB (or 1.87 gr/MJ) to Kijang Mill. Kijang Mill emission will sum up with emission from transport the CPPO amount 666,01 kg CO2e / ton CPO (or 15.90 gr/MJ) to Dumai Bulking. Emission in Bulking station amount 4,67 kg CO2e / tones CPO (or 0.11 gr/MJ). The total emission audited from site (plantation emission divided into OER 19,58% added by emission from mill and re added with emission from Bulking station) which is 1027, 05 kg CO2e / tones CPO (or 24.53 gr CO2e/MJ).

The entire sources of emission have been included on the GHG calculation, but in order to increase

Complied


ASSESSMENT REPORT


the accuracy of the calculation, the management unit has a chance to conduct the GHG calculation that comes from working tools which used fossil fuel (diesel and gasoline) in the operational activities.

R 2(v).b.3 Records of greenhouse gas data and calculations shall be kept for 5 years.

Company has drafted the procedure on the identification and traceability (PT BWL-KJGM/SOP/01). This procedure explains the mechanism for accepting fruit (from nucleus plantation, plasma or from supplier/independent smallholder), processing, oil palm storage and palm kernel in storage tank, as well as product delivery (CPO and palm kernel) to Dumai Bulking station. This procedure also establishes the supply chain system which applied based on the Mass Balance principles where FFB that comes from different sources are processed together. This procedure sets that FFB from nucleus plantation and non-nucleus plantation will differentiated on the recording (receipt code at weigh stations). The provided records such as: weigh ticket. The FFB that processed together, while palm kernel deliverance or products that claimed as a certified product will be used the Products Mail Delivery. This procedure also explains the storage duration for data and GHG calculation for 5 years period. The record of GHG review, were: 1. Plantation.

o The records of fertilizer use data. o The records of diesel comsumption data. o The records of lubricants consumption data. o The records of electricity consumption data.

a. Mill. o The records of diesel comsumption data. o The records of lubricants consumption data. o The records of electricity consumption data.

Complied

R 2(v).c. Until 31 March 2013, palm oil can be claimed to be in compliance with the EU-RED greenhouse gas criterion if there is evidence that the palm oil mill was in operation on or before 23 January 2008 (this is the grandfathering option). From 1 April 2013 no scheme-compliant claim can be made without meeting the EU-RED greenhouse gas threshold, regardless of when the palm oil was processed.

R 2(v).c.1 In order to use the grandfathering clause by producers, there shall be evidence that the palm oil mill was in operation on or before 23 January 2008.

Until now, this criteria has not been used, thus classified as not applicable. Not applicable as use of grandfathering clause is not allowed from 1 April 2013

Complied

R 2(v).c.2 Supply chain operators shall clearly communicate to the next economic operator that the grandfathering clause is being applied for the EU-RED greenhouse gas criterion.

Until now, this criteria has not been used, thus classified as not applicable. Not applicable as use of grandfathering clause is not allowed from 1 April 2013.

Complied

R3 The level of sampling to take place during a RSPO-RED certification assessment shall include every mill and be based on a minimum sample of √y where y is the number of management sub-units. This formula takes precedence over the sample formula specified in Section 4.2.9 of the RSPO Certification Systems document. This sampling formula shall be used as a minimum, and may be increased depending on the complexity and risk associated with the operations.


ASSESSMENT REPORT


On the implementation of the assessment, auditor taken samples from Kijang mill and plantation suppliers that comes from Kijang Mas Plantation (nucleus plantation of PT. Buana Wiralestari Mas) and 8 (eight) smallholders cooperatives (Makarti Buana Jaya, Berkat Ridho, Kijang Mas, Makmur Sejahtera, Panca Warga, Budi Karya, Lestari Jaya and Manunggal Abadi). Based on this formulation, the chosen plantation samples for the assessment are Kijang Mill, Kijang Estate and Kijang Kencana Plasma with three cooperatives samples taken (Kijang Mas Cooperative, Berkat Ridho Cooperative and Lestari Jaya Cooperative)

Complied

R4 Facilities who wish to comply with sustainability standards in the EU Renewable Energy Directive shall meet the following requirements in relation to the RSPO Supply Chain Certification requirements and the RSPO Supply Chain Certification Standard:

R4.1 Facilities shall use a RSPO supply chain system which follows physical oil through the supply chain (Identity Preserved, Segregated or Mass Balance). The RSPO Book & Claim option is not allowed under EU-RED requirements.

R 4.1.1 The facilities’ material accounting system shall distinguish between material which is RSPO certified, and material which is RSPO-RED certified.

The used material for accounting system has explain the separation of certified product which will be claimed as a RSPO certified product and RSPO-RED certified product. The system also allows explain the separation for another scheme beside RSPO (ISCC).

Complied

R4.2 The crude palm oil mill shall be included in the supply chain audits and certification, following the requirements as specified in Module D and E of the RSPO Supply Chain Certification Standard.

Kijang mill has comply the supply chain assessment with a mass balance model of module E for palm oil mill and has get an RSPO P&C certificate.

Complied

R4.3 Purchase orders or equivalent documents for RSPO certified palm oil or palm oil product shall specify:

the country of origin;

that the palm oil (product) meets the land use requirements outlined in Section 2.1;

the cumulative greenhouse gas intensity (g CO2/tonne or gCO2/MJ) of the emissions of greenhouse gases relative to the sustainable fraction of the delivered consignment.

Company has drafted the procedure on identification and traceability (PT BWL-KJGM/SOP/01). This procedure explains the Purchase Order mechanism that should stated the information of material’s country origins (origins of the FFB), comply the requirement for area’s functional change, calculation of the emissions and criteria for GHG

Complied

R5 Greenhouse gas criterion. One of the following options must be used for the EU-RED greenhouse gas criterion:

R5(a) Use of a default value specified in Annex V of EU-RED, which complies with the 35% greenhouse gas reduction criterion specified in EU-RED (and the 50% greenhouse gas reduction criterion from 1 January 2017). For palm oil biodiesel and hydrotreated vegetable oil from palm oil, currently only default values assuming methane capture at palm oil mills comply with the 35% greenhouse gas reduction criterion (and 50% from 1 January 2017). In Annex V of EU-RED, the aggregated default value for


ASSESSMENT REPORT


cultivation, processing (including methane capture at palm oil mill), transport and distribution of palm oil biodiesel is set at 37 g CO2eq/MJ (equivalent to an actual greenhouse gas saving of 56%). The aggregated default value for cultivation, processing (including methane capture at palm oil mill), transport and distribution of hydrotreated vegetable oil is set at 29 g CO2eq/MJ (equivalent to an actual greenhouse gas emission saving of 65%). In order to use these default values, there shall be evidence that biogas capture from palm oil mill effluent (POME) is applied. Note: The default values in Annex V of EU-RED may be subject to change in future.

R5.(a).1 There shall be evidence that methane (biogas) capture from palm oil mill effluent (POME) is used.

PT. BWL has not used the biogas to catch methane from generated POME Complied

R5.(a).2 Supply chain operators shall clearly communicate to the next economic operator that the default value option is being applied for the EU-RED greenhouse gas criterion. The relevant default value (g CO2eq/MJ) shall also be communicated to the next economic operator.

PT. BWL has not used the biogas to catch methane from generated POME Complied

R5.(b) Use of actual greenhouse gas values to calculate total greenhouse gas savings according to the EU-RED methodology.

R5.(b).1 Producers shall use an EC approved greenhouse gas methodology. The overview of EC approved methodologies can be found on: http://ec.europa.eu/energy/renewables/biofuels/sustainability_schemes_en.htm

PT. BWL implemented the RSPO RED by using the Methodology that stated in Annex V EU RED. Before, PT. BWL also using the methodology of ISCC on fulfilling the required criteria by the EU RED .

Complied

R5.(b).2 Supply chain operators shall clearly communicate to the next economic operator which calculation methodology is being applied. Disaggregated (actual and default) greenhouse gas data shall be communicated to the next economic operator.


There is a term of reference for GHG Officer that has been signed and approved by top management, for instance Kijang mill, the main responsibility such as collecting supporting data for calculating the value of GHG mill; and collecting value data of the GHG from the supplier plantation of FFB and transport.



Related to delivery of information on RSPO RED, need to involved personnel. PT. BWL has undertaken the socialization, for instance socialization in Dumai Bulking. The attendance sheet for RSPO RED socialization at December 10th, 2013 in DMAB meeting room which delivered by unit head is available. Participant of this socialization is 13 people including security, oil track officer, WB officer, etc.

In addition to the socialization, PT. BWL also distributed the SOP of RSPO RED to related personnel, for instance: there is a document receipt form for local SOP that addressed to Weight

Complied


ASSESSMENT REPORT


Bridge on December 10th, 2013. The submitted SOP documents are SOP on receipt and production load (IMT-DMAB/SOP/01); SOP for the calculation of GHG (IMT-DMAB/SOP/05); and SOP for Weight Bridge (IMT-DMAB/SOP/06). Documents have been accepted by Monika Ginting, and Iqbal Haikal (document control officers).

Summary on the calculation of GRK

Disaggregated default value was not used (the assigned number).

Disaggregated actual value used by PT. BWL (number of emission factor that has been set be multiplied with the actual data of field application).

Combination between disaggregated default value and actual value was not used.

The used official emission comes from highest emission from each entity, for plantation emission will use the highest emission which comes from Berkat Ridho cooperative, amount 78,62 kg CO2e / tones FFB to Kijang Mill. Kijang Mill emission will sum up with emission from transport the CPPO amount 666,01 kg CO2e / ton CPO to Dumai Bulking. Emission in Bulking station amount 4,67 kg CO2e / tones CPO. The total emission audited from site (plantation emission divided into OER 19,58% added by emission from mill and re added with emission from Bulking station) which is 1027, 05 kg CO2e / tones CPO.

The entire sources of emission have been included on the GHG calculation, but in order to increase the accuracy of the calculation, the management unit has a chance to conduct the GHG calculation that comes from working tools which used fossil fuel (diesel and gasoline) in the operational activities.

R5.(b).3 Records of greenhouse gas data and calculations shall be kept for 5 years.

Company has drafted the procedure on the identification and traceability (PT BWL-KJGM/SOP/01). This procedure explains the mechanism for accepting fruit (from nucleus plantation, plasma or from supplier/independent smallholder), processing, oil palm storage and palm kernel in storage tank, as well as product delivery (CPO and palm kernel) to Dumai Bulking station. This procedure also establishes the supply chain system which applied based on the Mass Balance principles where FFB that comes from different sources are processed together. This procedure sets that FFB from nucleus plantation and non-nucleus plantation will differentiated on the recording (receipt code at weigh stations). The provided records such as: weigh ticket. The FFB that processed together, while palm kernel deliverance or products that claimed as a certified product will be used the Products Mail Delivery. This procedure also explains the storage duration for data and GHG calculation for 5 years period.

Complied

R5.(c) Until 31 March 2013, palm oil can be claimed to be in compliance with the EU-RED greenhouse gas criterion if there is evidence that the palm oil mill was in operation on or before 23 January 2008 (this is the grandfathering option). From 1 April 2013 no scheme-compliant claim can be made without meeting the EU-RED greenhouse gas threshold, regardless of when the palm oil was processed.

R5.(c).1 In order to use the grandfathering clause by producers, there shall be evidence that the palm oil mill was in operation on or before 23 January 2008.

Until now, this criteria has not been used, thus classified as not applicable Complied

R5.(c).2 Supply chain operators shall clearly communicate to the next economic operator that the grandfathering clause is being applied for the EU-RED greenhouse gas criterion.

Until now, this criteria has not been used, thus classified as not applicable Complied

R6 Audits before participation in the RSPO-RED scheme


ASSESSMENT REPORT


All supply chain operators physically handling palm oil (products) shall be certified against the RSPO-RED Compliance Requirements before being allowed to participate in the scheme.

Kijang POM, and its supply base (Kijang Mas Estate, Kijang Kencana Smallholders Scheme) – PT. Buana Wiralestari Mas has been audited against RSPO P & C and RSPO Supply Chain Certification Standard November 2011. Kijang POM and its supply base has been certified since January 17 th, 2011 (Mutuagung Lestari Certification Body).

Complied

R7 Document management All operators wishing to comply with EU-RED requirements shall have a documentation management system. The system shall as a minimum contain all necessary documentation/evidence in relation to the claims they make or rely on. The documentation/evidence shall be kept for a minimum of 5 years.

The documentation management system available. Such as:


There is a term of reference for GHG Officer that has been signed and approved by top management, for instance Kijang mill, the main responsibility such as collecting supporting data for calculating the value of GHG mill; and collecting value data of the GHG from the supplier plantation of FFB and transport.



PT. BWL also distributed the SOP of RSPO RED to related personnel, for instance: there is a document receipt form for local SOP that addressed to Weight Bridge on December 10 th, 2013. The submitted SOP documents are SOP on receipt and production load (IMT-DMAB/SOP/01); SOP for the calculation of GHG (IMT-DMAB/SOP/05); and SOP for Weight Bridge (IMT-DMAB/SOP/06). Documents have been accepted by Monika Ginting, and Iqbal Haikal (document control officers).

Procedure on the identification and traceability (PT BWL-KJGM/SOP/01).

Complied

R8 Multi-site certification and audit All operators wishing to comply with EU-RED requirements, and wishing to use multi-site certification, shall comply with the requirements specified in Annex 2 of the RSPO Supply Chain Certification Systems document. All operators wishing to comply with EU-RED requirements, and wishing to use multi-site certification, shall use the following sample audit formula for initial assessments: ‘Square root of the total number of sites, rounded up to a whole number for each Set, plus Central Office’. This formula takes precedence over the sample audit formula for initial assessments specified in Annex 2 of the RSPO Supply Chain Certification Systems document. For operators wishing to comply with EU-RED requirements, the applicable multi-site sampling formulas shall be used as a minimum, and may be increased depending on the complexity and risk associated with the operations.

Kijang POM only conducted single site certification. Complied

R9 Limited assurance level Audits shall include control of quantitative claims made by operators, in particular in relation to mass balance data and greenhouse gas data. Based on the sampling of data, the auditor shall produce an audit statement specifying that at least the level of limited assurance was used, based on the guidelines laid down in the International Standard on Assurance Engagements (ISAE) 3000 (Revised), of the International Federation of Accountants (IFAC).


ASSESSMENT REPORT


Based on our assessment nothing has come to our attention to cause us to believe that there are errors in the evidence.

Complied


ASSESSMENT REPORT


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

3.5.1 Identification of Findings, Corrective Actions and Observations at Assessment

CAR No

Ref Std Finding Grade Area Time

Limits Corrective Action Observation Status

Closing Date

During the RSPO-RED assessment there was no nonconformance identified.

3.5.3 Opportunity for Improvement

No Ref Std Descriptions

1. 2.b.1 Management unit (Kijang Estate and Kijang Plasma) need to ensure the usage of mass type for herbicide material that will be used.

2. 2.b.1 Management unit has a chance to calculate the GHG which comes from working tools that used fossil fuel (diesel and gasoline) on the operational activities.


ASSESSMENT REPORT


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

Public Issue (Institution/ NGO / Community)

Management Response Auditor Response

National Land Agencyof 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.

In accordance with National land agency regulation.

Retained

Company is still waiting for the RTRWP approval from the ministry of forestry of republic of Indonesia.

Coordination and communication with stakeholders will be retained to maintain the harmonization and sustainability of management unit of PT Buana Wiralestari Mas

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.

Negative aspects: There is no negative aspect.

Sesuai yang ditetapkan BPN

Tetap dipertahankan

Perusahaan masih menunggu pengesahan RTRWP dari Menteri Kehutanan RI

Coordination and communication with stakeholders will be retained to maintain the harmonization and sustainability of management unit of PT Buana Wiralestari Mas

ELANG FOUNDATION (NGO)

No issues related to PT BWLM and PT RJP

Coordination and communication with stakeholders will be retained to maintain the harmonization and business continuity of management unit of PT Buana Mas Wiralestari


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, Ivo Mas Tunggal

Mutuagung Lestari

Head of Environmental Departement

Lead Auditor

Ismu Zulfikar

Octo HPN Nainggolan

Tuesday, 7 January 2014

Tuesday, 7 January 2014


ASSESSMENT REPORT


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

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

Date of Contact

1 Kampar Distric National Land

Agency

Bangkinang, District Kampar, Riau Province - Direct visit 22 October 2013

2 Kampar District Forest Agency Bangkinang, District

Kampar, Riau Province - Direct visit 22 October 2013

3 YAYASAN ELANG Pekanbaru, Riau Province

081371302269 By phone

call 23 October 2013


ASSESSMENT REPORT


DATE 09 – 11 December 2013

ACTUAL DURATION PROCESSES / CLAUSES TO BE AUDITED AUDITOR

Monday, 09 December 2013

06.00 - 08.00

08.00 - 10.30

10.30 – 11.00

11.00 – 12.30

Jakarta Pekanbaru

Pekanbaru Kampar

Opening Meeting

Document review of KIJANG ESTATE:

Basic Information

Requirement of EU RED (1.1; 1.2; 1.3; dan 1.4)

ON / AR / MHS

ON / AR / MHS

ON / AR / MHS

12.30 – 14.00 BREAK

14.00 – 17.30 Document review and Field Observation to KIJANG POM:

Field Observation to KIJANG ESTATE:


Requirement of EU RED (2.a; 2.b; dan 2.c)

ON / MHS

AR

Tuesday, 10 December 2013

08.00 – 12.00

Document review and Field Observation to KIJANG MAS COOPERATIVE:

Basic Information



Document review and Field Observation to DUMAI BULKING

ON / MHS

AR

12.00 – 14.00 BREAK

14.00 – 16.00

14.00 – 16.00

Document review and Field Observation to BERKAT RIDHO COOPERATIVE:

Basic Information



Document review and Field Observation to DUMAI BULKING

ON / MHS

AR

Wednesday, 11 December 2013

08.00 - 10.30

10.30 - 12.00

13.30 – 14.30

18.00 – ........

Document review and Field Observation to LESTARI JAYA COOPERATIVE:

Basic Information



Field Observation Clarification and Audit Finding Preparation

Closing Meeting

Kijang POM (PT BWL) PEKANBARU

PEKANBARU JAKARTA

ON / AR / MHS

ON / AR / MHS

ON / AR / MHS

ON: Octo HPN Nainggolan AR: Abdul Rahman MHS: Martinus Hadi Sutedjonoto

Appendix 2. Assessment Program


ASSESSMENT REPORT


Appendix 3. Glossary

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

APD / PPE : Alat Pelindungan Diri (Personal Protection Equipment)

B3 : Bahan Beracun and Berbahaya (Hazardous Material Waste)

BKSDA : Balai Konservasi Sumberdaya Alam (Natural Resources Conservation Agency)

BOD : Biological Oxygen Demand

BPN : Badan Pertanahan Nasional (National Land Agency)

CPO : Crude Palm Oil

EFB : Empty Fruit Bunch

HCV : High Conservation Value (Nilai Konservasi Tinggi)

HGU : Hak Guna Usaha. (Land Use Permit)

HIRARC : Hazard Identification Risk Assessment and Risk Control

IUP : Izin Usaha Perkebunan. (Plantation Business License)

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

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

MRC : Minamas Research Centre

NAB : Nilai Ambang Batas (Noise Intensity)

OER : Oil Extraction Rate

P&C : Principle and Criteria

PK : Palm Kernel

PKO : Palm Kernel Oil

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

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

RSPO : Roundtable on Sustainable Palm Oil

RSPO-RED : Roundtable on Sustainable Palm Oil – Renewable Energy Directive

SOP : Standart Operating Procedure

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

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

Initial [ ] Re-Assessment · PT. MUTUAGUNG LESTARI ASSESSMENT REPORT SPO – 4006a.5 Page 6...

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Transcript of Initial [ ] Re-Assessment · PT. MUTUAGUNG LESTARI ASSESSMENT REPORT SPO – 4006a.5 Page 6...