Roundtable on Sustainable Palm Oil - TÜV Rheinland · PT GAWI MAKMUR KALIMANTAN – KCP SATUI...

Roundtable on Sustainable Palm Oil Supply Chain Certification Assessment Report

Report no.: SCCS -16023

Assessment against RSPO Supply Chain Certification Systems 2014

PT GAWI MAKMUR KALIMANTAN Satui – Kernel Crushing Plan

South Kalimantan Province

Indonesia

Date of assessment: August 6, 2015

Report prepared by:

Mhd Fundy Cholis Kurniawan (RSPO Lead Auditor)

Certification decision by:

Nyoman Susila (Director of PT TUV Rheinland Indonesia)

Certification Body: PT TUV Rheinland Indonesia

Menara Karya, 10th Floor Jl. H.R. Rasuna Said Block X-5 Kav.1-2

Jakarta 12950,Indonesia Tel: +62 21 57944579 Fax: +62 21 57944575

www.tuv.com/id

TABLE OF CONTENTS

1.0 SCOPE OF SUPPLY CHAIN CERTIFICATION ASSESSMENT ........................... 3

1.1 Executive Summary and Scope of Assessment .......................................................................... 3

1.2 Certification Details ...................................................................................................................... 3

1.3 Organisational Information / Contact Person ............................................................................... 3

1.4 Actual production volumes and projected outputs ....................................................................... 4

1.5 Summary of Certification Assessment ......................................................................................... 4

2.0 ASSESSMENT PROCESS .................................................................................... 5

2.1 Certification Body ......................................................................................................................... 5

2.2 Qualifications of Lead Assessor and Assessment Team ............................................................ 5

2.3 Assessment Methodology & Agenda ........................................................................................... 5

3.0 ASSESSMENT FINDINGS ..................................................................................... 6

3.1 Description of Supply Chain Management System ................................................................ 6

3.2 Identified Non-conformances against RSPO SCCS Requirements, Corrective Actions Taken and Auditors Conclusions ........................................................................................................................ 12

3.3 Conclusion and Recommendation for RSPO Supply Chain Certification ................................ 18

4.0 CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF INT ERNAL

RESPONSIBILITY .................................... ........................................................... 19

4.1 Date of Next Surveillance Visit ................................................................................................... 19

4.2 Acknowledgements of Internal Responsibility and Formal Sign-Off by Client .......................... 19

APPENDICES ............................................................................................................ 19

Appendix 1: Details of Supply Chain Certification Certificate .......................................................... 19

Appendix 2: List of Abbreviations ..................................................................................................... 22

Appendix 3: Observations and Opportunities for Improvement ....................................................... 22

Appendix 4: Supply Chain Certification Audit Closing Meeting Summary ...................................... 22

Appendix 5: List of Certified Product and Projection for year 2015 ................................................ 22

Appendix 6: List of Certified Suplier and Buyer .............................................................................. 22

RSPO SCCS Certification Assessment Report PT GAWI MAKMUR KALIMANTAN – KCP SATUI

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QMF: RSPO-007c-13 rev.2

1.0 SCOPE OF SUPPLY CHAIN CERTIFICATION ASSESSMENT

1.1 Executive Summary and Scope of Assessment

The operations of PT Gawi Makmur Kalimantan – KCP Satui were assessed against General Module, Mod-ule C of the RSPO Supply Chain Certification (SCCS) document (November 2014). This is a single site certifi-cation. According to information stated on Foreign Investment Principle license (”Ijin Prinsip Penanaman Modal Asing”) No.1/63/IP-PL/PMDN/2014 dated April 19, 2014, the KCP capacity was:

Product Type Capacity (tonnes)/year

PKE 25,597.343

PKO 23,529.183

Shell 8,797.074

The assessment was carried out on 6 August, 2015 and a total of 17 non-conformities were found.

1.2 Certification Details

The details of RSPO certification of PT Gawi Makmur Kalimantan – KCP Satui are as per the table below Table 1: RSPO Supply Chain Certification details of PT Gawi Makmur Kalimantan – KCP Satui Refer to Appendix 1 for further details of the RSPO Supply Chain certificate.

1.3 Organisational Information / Contact Person

Contacts details of the company are as follows:

RSPO Membership No.: 1-0126-12-000-00

RSPO Supply Chain Certificate No.: 824 503 16023

RSPO (e-Trace) No.: RSPO_PO1000003139

Date of RSPO Supply Chain certificate & validity: J une 16, 2016 until June 15, 2021

Company Name: PT Gawi Makmur Kalimantan – KCP Satui

Address:

Head Office: Taman Perkantoran Kuningan, Wisma Gawi Lantai 4, Jalan Setiabudi Selatan Kavling 16-17, Kelurahan karet, Kecamatan Setiabudi Selatan,Jakarta Selatan-DKI Jakarta Plant: Satui Barat Village, Tanah Bumbu District, South Kalimantan Prov-ince

Contact Person: Farid Makhruf

Position: Management Representative

Telephone: Office: +62 21 5790 1085 Fax: +62 21 5790 1077 / +62 5292 0577

Email: [email protected]


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1.4 Actual production volumes and projected outputs

Certified tonnages claimed, certified tonnages purc hased or sold, total and projected PKO and PKE pro-duction from PT Gawi Makmur Kalimantan – KCP Satui

Table 3: Records of Certified Material Recived/ Pu rchased *

Supplier RSPO Certificate Number

Product UTZ Number Volume

- - - - -

Table 5: Records of Palm Kernel Product Sold*

Buyer RSPO Certificate Number

Product UTZ Number Volume

- - - - - Note: This is certification assessment, PT GMK – KCP Satui not purchase yet certified material and not claim yet

certified product.

1.5 Summary of Certification Assessment

During the certification audit, PT Gawi Makmur Kalimantan – KCP Satui willing to audit they system to prepared the RSPO SCCS implementation. During certification audit, the auditor identify 17 Non conformities raised re-lated company the supply chain certification, third party activities and others referring to RSPO SCCS require-ment.


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2.0 ASSESSMENT PROCESS

2.1 Certification Body PT TUV Rheinland Indonesia is member of Group TÜV Rheinland Group, a global leader in independent test-ing and assessment services. The TÜV Rheinland Group was established in 1872 with offices located in over 490 locations in 62 countries on all five continents. PT TUV Rheinland Indonesia offers certification for a wide range of management systems according to established international standards including ISO 9001, ISO 14001, OHSAS 18001, SA 8000, RSPO, ISPO (Indonesian Sustainable Palm Oil Certification), ISCC, Timber Legality Verivication (SVLK), as well as CDM Validations and Verifications. PT TUV Rheinland Indonesia’s office is lo-cated in Jakarta, Indonesia.

2.2 Qualifications of Lead Assessor and Assessment Team

Name Position Qualifications / Experience

Mhd Fundy C Kurniawan

Lead Auditor

Education: Master Degree in Natural Reseource and Environmental Management, Bogor Agriculture University Trainings attended: Environmental Impact Assessment (EIA), Ecolog-ical Risk Assessment (ERA), Internal Quality Audit Training for Quality Management System, IRQA-QMS ISO 9001:2000, IRQA-EMS ISO 14001:2004, High Conservation Value (HCV), Timber Legality Verifica-tion (SVLK), RSPO Lead Auditor Course, ISPO Auditor Course, RSPO SCCS training by BM Trada. Working experience: Experienced in Environmental Impact Assess-ment, Environmental Health Safety Senior Officer (EHS-Officer) in Wil-mar International Plantation, Internal Auditor for Wilmar International Plantation, and Auditor for Rountable on Sustainable Palm Oil (RSPO), Indonesian Sustainable Palm Oil (ISPO), and Certification for Timber Legality Verification (SVLK) in PT TUV Rheinland Indonesia since June 2012 – present.

2.3 Assessment Methodology & Agenda The supply chain certification assessment was conducted on August 6, 2015 in PT Gawi Makmur Kalimantan – KCP Satui as per the assessment program below. The assessment was carried out in accordance PT TUV Rheinland Indonesia’s RSPO audit procedure as well as the RSPO Supply Chain Certification document through the method is sampling, interview, field visit, document check such as procedure and record of process. An on-site assessment was conducted by the assessment team in KCP Plant, Loadingramp area for Kernel and document assessments of compliance to RSPO Supply Chain Certification System requirements November 2014. The company proposed the correction and corrective action for all identified non conformities raised to the certi-fication body 30 days after the closing meeting. Verification of closure of non-conformances was conducted 30 days after the closing meeting of the main assessment. The certification assessment agenda is as explained below.

Main Assessment Agenda


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3.0 ASSESSMENT FINDINGS

3.1 Description of Supply Chain Management System

The following is a description of the findings pertaining to the company’s supply chain management system according to the RSPO SCCS requirements, including status of compliance of the company and their out-sourced third parties to RSPO SCCS requirements:

Section 5: General Chain of Custody System Requirem ents for the Supply Chain

5.1. Applicability of the General Chain of Custody System Requirements for the supply chain

Findings: Kernel Crushing Plant – Satui is a member of Gawi Makmur Kalimantan. It is strategically located at Satui Barat Village, Satui Sub District, Tanah Bumbu District, South Kalimantan Province – Indonesia. It is ker-nel crushing plant to produce the kernel oil and expeller from PK. Management Gawi Makmur Kalimantan – KCP Satui has commitment to implement RSPO SCCS. The company’s supply chain management system. Following the nature of company’s material purchased availability for production facilities. The KCP - Satui management decided to implement Mass Balance system supply chain model (Module C), as stated on company’s quality manual to include all RSPO SCCS requirements. A set of standard operation procedure has been established for RSPO SCCS im-plementation. KCP - Satui is RSPO member under Gawi Makmur Kalimantan with membership number 1-0216-12-000-00. Compliance status: Full Compliance 5.2. Supply chain model

Date Location/ Main

sites Main activities

August 6, 2015

08.00 – 12.00 1. Opening Meeting 2. Plant Tour

- Incoming material at loading ramp and weighbridge 3. Documentation system 4. Purchasing and goods in 5. Outsourcing Activity 6. Sales and good out 7. Registration of transaction 8. Training 9. Record keeping 10. Claims 11. Complaints 12. Management review

13.30 – 17.00 1. Mass Balance 2. Supply chain requirement for MB 3. Processing for 4. Record keeping for MB 5. Mass balance system 6. Conservation ratio for MB 7. Yield schemes for MB


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Findings: Gawi Makmur Kalimantan – KCP Satui will implement the RSPO SCCS MB model (Module C) in organi-zation activity. Compliance status: Full Compliance

5.3. Documented procedures

Findings: KCP – Satui has a set written procedures and working instruction to support implementation of all ele-ments stated on RSPO SCCS year 2014. The procedures were updated and covering all activities in KCP – Satui, such as:

- SOP/GMK-AGRO/03/05 Rev 02 dated on 11-06-2014, about receiving product from palm oil mill, in part number 11, point 5.3 and 5.4 was set about receiving incoming material PK from one group and others group, but the procedure no sett about the certified and uncertified handling raw material (PK).

- SOP/GMK-AGRO/01/03 Rev 01 dated on 7-06-2014, about handling noncoformance product. Genereally was set how to handling the non conformace product through identification and carry out the cause analysis and make the corrective and correction action.

- SOP/GMK-AGRO/03/06 Rev 03 dated on 2-03-2015, about product delivery on palm oil mill. The procedure has mentioned how to handling delivery certified and uncertified product, when the cer-tified product will claimed as a sustainable product will complete by RSPO stamp and supply chain model in weighbridge slip, then in delivery order for sustainable product should include in-formation about name, addrassed of buyer and seller, dated of issue, information of supply chain model, and other related information.

- SOP/GMK-AGRO/01/10 Rev 03 dated 11-06-2014, about traceable sustainable mass balance re-port, not set about handling of data input for certified and uncertified mass balance table from in-coming, receiving PK and delivery or selling of PKO and Expeller.

- There is no available of procedure or mechnism for outsourcing activity related to the PK and PKO transportation was done by KCP – Satui.

Based on document verification, the mechanism or procedure to support the RSPO SCCS MB implemen-tation in KCP – Satui was not enough, so this is raised as a non conformity (NCR 2015 – 01 of 17 ). There in no record of demonstrated or simulation of RSPO SCCS MB implementation from incoming ma-terial until product delivery. The demonstratee need to carry out te ensure the person in charge will un-derstood well for SCCS implementation. This is also raised as a non conformity (NCR 2015 – 02 of 17 ). KCP Satui, has provide training and brief of RSPO SCCS MB for all related person who will implemented the RSPO SCCS MB through record of procedure, work instruction, job description brief carried out on May 26, 2015, but still used the RSPO SCCS old standard, and attendant by 10 person from related per-son will responsible the RSPO SCCS MB. And based on field interview, some of PK loading officer not has brief/training yet by the company. So this is non compliance and raise as a non conformity (NCR 2015 – 03 of 17 ). Compliance status: Non Compliance NCR 2015 – 01 of 17 The mechanism or procedure to support the RSPO SCCS MB implementation in KCP-Satui was not enough. NCR 2015 – 02 of 17 There is no record of demonstrated or simulation of RSPO SCCS MB implementation from incoming ma-terial until product delivery. NCR 2015 – 03 of 17 Found the PK loading officer not understood well the RSPO SCCS system, because he did not training yet by company.


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5.4. Purchasing and goods in

Findings: This is certification assessment, so the KCP – Satui did not have any record to showed how to purchasing activity the certified and uncertified raw material and/or PK product delivery. This record will verify when the RSPO SCCS MB implemented by company, in the next surveillance. But, the KCP – Satui, there is no record template for prepare the RSPO SCCM MB impelementation such as mass balance record template, certified supplier identification form, and others. So this is raised as non conformities (NCR 2015 – 04 of 17 ). For certified suppliers will be verified on the next surveillance also, because at the certification assess-ment, the company still developed the system. KCP – Satui did not have the mechism or procedure for handling non conformance document. This is raised as non conformities (NCR 2015 – 05 of 17 ). Compliance status: Non Compliance NCR 2015 – 04 of 17 KCP – Satui did not yet the simulation for incoming raw metaril until product delivery for certified and un-certified. NCR 2015 – 05 of 17 KCP – Satui did not have the mechism or procedure for handling non conformance document.

5.5. Outsourcing activities

Findings: There is outsourcing activity in KCP – Satui, but the company did not yet provide the RSPO SCCS MB to the all of outsourcing activity. This is raised as non conformity (NCR 2015 – 06 of 17 ). In the record of outsourcing activity agreement, did not stated that the contractor should be understood with the RSPO SCCS MB standard, then there is no requirement in the agreement that the CB will allowed to assesst and verify the outsourcing related to the RSPO SCCS MB implementation if necessary. This is raised as a non confromity (NCR 2015 – 07 of 17 ). On the other hand, the company did not establish the mechanism to control the process was outsourced by the company to third party also. This is raised as a non conformity (NCR 2015 – 08 of 17 ). KCP – Satui did not record the contratctor list contact details used for processing and or production the raw material. This is raised as a non conformity also (NCR 2015 – 09 of 17 ). KCP – Satui also did not mechanism to inform the CB if any new contractor will use by company. This is raised as a non conformity (NCR 2015 – 10 of 17 ). Compliance status: Non Compliance NCR 2015 – 06 of 17 There is no record that the outsourcing activity was provided brief of RSPO SCCS MB by the company. NCR 2015 – 07 of 17 Contract agreement between company with third party did not include with statement that the third party will allow the CB carry out the verification related RSPO SCCS MB implementation in necessary. NCR 2015 – 08 of 17 The company did not establish the mechanism to control the process was outsourced by the company to third party also. NCR 2015 – 09 of 17 KCP – Satui did not record the contratctor list contact details used for processing and or production the raw material. NCR 2015 – 10 of 17


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KCP – Satui also did not mechanism to inform the CB if any new contractor will use by company.

5.6. Sales and goods out

Findings: KCP – Satui has procedure number SOP/GMK-AGRO/03/06 Rev 03 about delivery product from palm oil mill. The procedure was mentioned about shipping documents, but the document not covered information about:

- Supply chain certification number - Unique identification number - Others related document

This raised as a non conformity (2015 – 11 of 17 ). This is a certification assessment, verify of implementation of sales and goods in will verify in next surveil-lance and or company carried out the sales activity. Compliance status: Non Compliance NCR 2015 – 11 of 17 Company procedure number SOP/GMK-AGRO/03/06 Rev 03 mentioned about shipping documents, but the shipping documents still not covered as a RSPO SCCS requirements.

5.7. Registration of transaction

Findings: The KCP-Satui still in certification process assessment, so this requirement not applicable for this time, and will verfiy during the next surveillance. Compliance status: Not Applicable for Certification Assessment

5.8. Training

Findings: KCP – Satui did not have any training program for 2016, especially for RSPO SCCS MB will provide to all workers will implemented the system accordance to JobDesc. Compliance status: Non Compliance NCR 2015 – 12 of 17 There is no training program for 2016 especially for RSPO SCCS training program.

5.9. Record keeping

Findings: This is a certification assessment, the record keeping related the RSPO SCCS implementation will verify during the next surveillance. Compliance status: Not Applicable for Certification Assessment

5.10. Conversion Factor

Findings: This is a certification assessment, the realization conversion factor related the RSPO SCCS MB imple-mentation will verify during the next surveillance. And the company has provided the procedure for con-version factor based on RSPO SCCS conversion factor.


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Compliance status: Not Applicable for Certification Assessment

5.11. Claims

Findings: This is certification assessment; there is no record related RSPO SCCS MB claims. This requirement will verify during the next surveillance. Compliance status: Not Applicable for Certification Assessment

5.12. Complaints

Findings: This is certification assessment, there is no record related RSPO SCCS MB complaints. This requirement will verify during the next surveillance. Compliance status: Not Applicable for Certification Assessment

5.13. Management Review

Findings: KCP – Satui did not carried out the management review as a required in RSPO SCCS standard. This is raised as a non conformity (NCR 2015 – 13 of 17 ). Compliance status: Non Compliance NCR 2015 – 13 of 17 There is no record of management review carried out by company.

Section 3: Modular Requirements: Module C – Mass Ba lance

C.1. Definition

Findings: KCP – Satui will implementation the RSPO SCCS MB. This supply chain system will allowed the KCP-Satui mixing between certified and uncertified PK and PKO or PKE in one time and/or one storage tank, but should be control by mass balance system. During the certification audit, only Satui mill certified by RSPO, but the mill also received the FFB from uncertified supplier, so the KCP-Satui still no identified the PK certified source. Identified process will begin after the system RSPO SCCS certification process approve by RSPO. This is certification assessment, so there is still no available document and record related the RSPO SCCS MB implementation. This requirement will verify in the next surveillance. Compliance status: Not Applicable for Certification Assessment

C.2. Record keeping

Findings: There is no mass balance record template for disperate and control between certified and uncertified PK, PKO and PKE produced by KCP-Satui. On this certification assessment, the company should prepare the mass balance template. So this is raised as a non conformity (NCR 2015 – 14 of 17)


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Compliance status: Non Compliance NCR 2015 – 14 of 17 There is no mass balance record template to disperate between certified and uncertified raw material and product.

C.3. Processing

Findings: This is certification assessment, so there is no available the processing record for RSPO SCCS MB im-plementation in KCP – Satui. This requirement will verify during the next surveillance. But the company has procedure for handling certified and uncertified raw material from incoming until shipping process, when the certified raw material in receiving slip will complete with RSPO stam, then uncertified without RSPO stamp, also the certified raw material will come from Satui and Timur estate (owned estate). Compliance status: Not Applicable for Certification Assessment

C.4. Continuos accounting system

Findings: During the certification process, the KCP-Satui no have any decission for RSPO SCCS MB system will implemented, there is no mechanism for continuous accounting system if ceritified product was minus, is it possible for sales or waiting until stock positive back. This is raised as a non conformity (NCR 2015 – 15 of 17). This is will check again in the next surveillance. Compliance status: Non Compliance NCR 2015 – 15 of 17 There is no mechanism for continouos accouting system if certified product was minus. C.5. Fixed inventory periods Findings: KCP-Satui was decide the fixed inventory periods for mass balance system, but there is no mechanism explained how this system and when this systme will evaluate. This raised as a nonconformity (NCR 2015 – 16 of 17). This is will check in the next surveillance. Compliance status: Non Compliance NCR 2015 – 16 of 17 There is no mechanism to handling and evaluate the mass balance system implemented by company. C.6. Conversion ratios Findings: During the certification assessment the organization still no yet purchase and produce the certified palm kernel product, so that record of conversion ratios for certified palm oil product for this time was not avail-able. But, the KCP-Satui will prepared the procedure about the conversion ratios, accordance to RSPO Conversion Ratios guidance. This is will verify in the next surveillance. Compliance status: Not Applicable for this time 1st surveillance C.7. Yield schemes Findings:


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There is no record for mass balance yield schemes for PKO sold by company especially for certified and uncertified palm kernel product. This is raised as a non conformity (NCR 2015 – 17 of 17 ). Compliance status: Non Compliance NCR 2015 – 17 of 17 There is no recordof mass balance yield schemes for PKO certified and uncertified produced by KCP.

3.2 Identified Non-conformances against RSPO SCCS Requirements, Corrective Actions Taken and Audi-tors Conclusions

NCR 2015 – 01 of 17 The mechanism or procedure to suppor the RSPO SCCS MB implementation in KCP-Satui was not enough. Correction:

- Develop and revised the SOP/GMK-AGRO/03/05 Rev 02 will input information about mechanism for certified and uncertified PK receiving.

- Develop and revised the SOP/GMK-AGRO/01/10 Rev 03 will input information about PKO certified and uncertified handling.

- Develop procedure about outsourcing activity/third party. Corrective Action:

- Ensure the new procedure about mechanism PK handling certified and uncertified available on the site.

- Ensure the new procedure about mechanism PK receiving certified and uncertified available on the site.

- Ensure the procedure for third party available. Auditor Conclusions: Closed Date of closure: September 30, 2015 Verification Result: The company was revised the procedure related:

- SOP/GMK-AGRO/03/05 Rev 03 dated on 10/08/2015 about product receiving in mill mechanism. Procedure has set the mechanism for PK receiving, when in the weighbridge; the officer shall en-sure the slip was complete by stamp.

- SOP/GMK-AGRO/03/05 Rev 04 dated on 10/08/2015 about traceable sustainable mass balance re-port. The procedure was set the mechanism for certified and uncertified product

- SOP/GMK-AGRO/01/20 Rev 0 dated on 31/08/2015 about third party activity. In the procedure was mentioned activity will outsourced was delivery raw material and product (PK, PKO, PKE, and Shell).

NCR 2015 – 02 of 17 There is no record of demonstrated or simulation of RSPO SCCS MB implementation from incoming ma-terial until product delivery. Correction: Developed the work program and flowchart and identified whose person and related department will fol-low the RSPO SCCS MB simulation from receiving until delivery for certified and uncertified product, and the simulation process will be recorded. Corrective Action: Ensure the work program will implement and will evaluate.


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Auditor Conclusions: Closed Date of closure: September 30, 2015 Verification result: KCP-Satui carried out the RSPO SCCS MB simulation from raw material receiving process until product delivery on September 5, 2015, with the evidenced was simulation record, photograph, in every process step. NCR 2015 – 03 of 17 There is no enough record of all related person will implemented the RSPO SCCS MB in KCP – Satui was brief and or trained by company. Correction: Develop the SCCS training program October 2015 version to all related person who will impelement the RSPO SCCS MB, and the training process will documented. Corrective Action: Ensure the training program was implement accordance to work plan. Auditor Conclusions: Closed Date of closure: September 30, 2015 Verification result: KCP-Satui carried out the RSPO SCCS MB on September 15, 2015. The training was attendant by 15 person from KCP. NCR 2015 – 04 of 17 There is no record template for prepare the RSPO SCCM MB impelementation such as mass balance record template, certified supplier identification form, and others. Correction: - KCP-Satui will develop the mass balance record for PKO and PKE - Identified the certified supplier and input into the supplier certified list. Corrective Action: - Ensure and monitoring the mass balance of PK and PKE - Recording the certified list supplier and update if any new supplier. Auditor Conclusions: Closed Date of closure: September 30, 2015 Verification result: KCP-Satui was develop the mass balance record, when in the mass balance record showed the infor-mation about FFB Received, FFB Process, PK Production, PK Out and PK In, PK Stock for certified and uncertified. NCR 2015 – 05 of 17 KCP – Satui did not have the mechism or procedure for handling non conformance document. Correction: Additional item/revised on procedure SOP/GMK-AGRO/03/06 about handling non conformance docu-ment. Corrective Action: Ensure the mechanism for handling non conformace document was available and implemented.


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Auditor Conclusions: Closed Date of closure: September 30, 2015 Verification result: KCP-Satui has revised the procedure number SOP/GMK-AGRO/03/06 Rev 04 dated on 10/08/2015 about product delivery. This procedure has set the mechanism for certified and uncertified product delivery, when for non certified product, there is no product explanation during printing process. NCR 2015 – 06 of 17 There is no record that the outsourcing activity was provided the RSPO SCCS MB brief by the company. Correction: Develop work brief program related to RSPO SCCS MB to all of third party//outsourcing Corrective Action: Ensure the RSPO SCCS MB brief program was implemented to all third party//outsourcing Auditor Conclusions: Closed Date of closure: September 30, 2015 Verification result: KCP-Satui has developed the RSPO SCCS MB training/brief to the third party/outsourcing. NCR 2015 – 07 of 17 Contract agreement between company with third party did not include with statement that the third party will allow the CB carry out the verification related RSPO SCCS MB implementation in necessary. Correction: Revised the SOP/GMK-AGRO/01/20 has set about that the CB will accepted to verify the third party if necessary related to the RSPO SCCS MB implementation. Corrective Action: Ensure that procedure well implemented. Auditor Conclusions: Closed Date of closure: September 30, 2015 Verification result: KCP-Satui has submitted the new procedure revised number SOP/GMK-AGRO/01/20 dated on 31/08/2015. Procedure mentioned in point number 4.3 “the contract agreement should be include in 10 point, which is the third party will allow the CB to carry out verification of RSPO SCCSM MB implementa-tion if necessary. NCR 2015 – 08 of 17 The company did not establish the mechanism to control the process was outsourced by the company to third party also. Correction: Revised the procedure number SOP/GMK-AGRO/01/20 with complete by mechanism about outsourc-ing/third party process control. Corrective Action: Ensure the third party process control well implemented Auditor Conclusions: Closed


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Date of closure: September 30, 2015 Verification result: KCP-Satui has submitted procedure number SOP/GMK-AGRO/01/20 Rev 0 dated on 31/08/2015. This procedure has set the process control in third party outsource activity. NCR 2015 – 09 of 17 KCP – Satui did not record the contratctor list contact details used for processing and or production the raw material. Correction: Compile the contractor list name, addrased, contact detils, kind of contract and contract volume Corrective Action: Ensure the contractor list available and up to date. Auditor Conclusions: Closed Date of closure: September 30, 2015 Verification result: KCP-Satui has submitted the list of contractor for 2015 for PK and PKO transport. NCR 2015 – 10 of 17 KCP – Satui also did not mechanism to inform the CB if any new contractor will use by company. Correction: Revised the procedure number SOP/GMK-AGRO/01/20 about mechanism to inform the CB if any new contractor. Corrective Action: Ensure the new procedure available and well impelement. Auditor Conclusions: Closed Date of closure: September 30, 2015 Verification result: KCP-Satui has submitted the new procedure number SOP/GMK-AGRO/01/20 Rev 0 dated on 31/08/2015. The procedure has mentione in point number 4.4.2 stated that the company should be inform to the CB if any new contractor through the email and fax number. NCR 2015 – 11 of 17 Company procedure number SOP/GMK-AGRO/03/06 Rev 03 mentioned about shipping documents, but the shipping documents still not covered as a RSPO SCCS requirements. Correction: Added new item about supply chain certificate number, unique number, and all related information in to the sales document and stated in the procedure number SOP/GMK-AGRO/03/06 Rev 03 about product delivery. Corrective Action: Ensure the procedure number SOP/GMK-AGRO/03/06 Rev 03 will implemented well. Auditor Conclusions: Closed Date of closure: September 30, 2015


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Verification result: KCP-Satui has submitted the new procedure number SOP/GMK-AGRO/03/06 Rev 03 about additional new information in sales document. NCR 2015 – 12 of 17 There is no training program for 2016 especially for RSPO SCCS training program. Correction: Corrective Action: Develop the SCCS training program October 2015 version. Auditor Conclusions: Closed Ensure the training SCCS program implemented well and meet with plan. Date of closure: September 30, 2015 Verification result: KCP-Satui has carried out the RSPO SCCS MB training dated on September 15, 2015, attendandt by 15 person, from related department. NCR 2015 – 13 of 17 There is no record of management review carried out by company. Correction: Develop the internal audit program, management review to ensure the system effectiveness. Corrective Action: Ensure the program audit and management review implemented well accordance to the plan. Auditor Conclusions: Closed Date of closure: September 30, 2015 Verification result: KCP-Satui has submitted the internal audit plan, will carry out in June 2016 and management review also will carry out in 3th semester in one year. NCR 2015 – 14 of 17 There is no mass balance record template to disperate between certified and uncertified raw material and product. Correction: Develop the mass balance template for PK, PKO, PKE with evaluation in every 3 months. Corrective Action: Ensure the mass balance record will available, and conduct monitoring in every 3 moths for PK, PKO and PKE stock. Auditor Conclusions: Closed Date of closure: September 30, 2015 Verification result: KCP-Satui has submitted the mass balance record template for PK, PKO, PKE with information was cov-ere about FFB received, FFB process, PK production, PK purchase, PK out, PK stock, for certified and uncertified product.


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NCR 2015 – 15 of 17 There is no mechanism for continouos accouting system if certified product was minus. Correction: KCP-Satui did not apply for continuos accounting system for RSPO SCCS MB, but the KCP-Satui will im-plemented the Fixed inventory periods. Corrective Action: Ensure the mass balance Fixed inventory periods with 3 months monitoring. Auditor Conclusions: Closed Date of closure: September 30, 2015 Verification result: KCP-Satui has submitted the procedure number SOP/GMK-AGRO/01/10 Rev 04 dated on 10/08/2015 about traceable sustainable mass balance report, in point number 5.10 stated the KCP will implemented the fixed inventory periods and the KCP will monitoring in every 3 months. NCR 2015 – 16 of 17 There is no mechanism to handling and evaluate the mass balance system implemented by company. Correction: Revised the procedure number SOP/GMK-AGRO/01/10 about traceable sustainable mass balance report with added new information about PKO mass balance mechanism. Corrective Action: Ensure the new information was added in procedure will implemented well. Auditor Conclusions: Closed Date of closure: September 30, 2015 Verification result: KCP-Satui has submitted the procedure number SOP/GMK-AGRO/01/10 Rev 04 dated on 10/08/2015 about traceable sustainable mass balance report, in point number 5.10 stated the KCP will implemented the fixed inventory periods and the KCP will monitoring in every 3 months. NCR 2015 – 17 of 17 There is no recordof mass balance yield schemes for PKO certified and uncertified produced by KCP. Correction: Develop the mass balance yield scheme for certified and uncertified PK and PKO will sale and.or claimed by company. Corrective Action: Ensure the mass balance yield scheme for PK and PKO always made by person in charge. Auditor Conclusions: Closed Date of closure: September 30, 2015 Verification result: The company has submitted the mass balance yield scheme for certified and uncertified raw material and product.


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3.3 Conclusion and Recommendation for RSPO Supply Chain Certification The audit team has confirmed through the audit process that PT Gawi Makmur Kalimanan – KCP Satui has prepared their system to ensure compliance with the RSPO Supply Chain Certification requirements (dated November 2014). PT TUV Rheinland Indonesia recommends that PT Gawi Makmur Kalimanan – KCP Satui will approve their certification of compliance to the RSPO Supply Chain Certification requirements.


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4.0 CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF INT ERNAL RESPONSIBILITY 4.1 Date of Next Surveillance Visit

The next surveillance visit is planned for March 2017.

4.2 Acknowledgements of Internal Responsibility and Formal Sign-Off by Client

It is acknowledged that the assessment visit was carried out as described in this report and we accept the as-sessment findings and report content.

Signed on behalf of PT Gawi Makmur Kalimantan

Farid Makhruf Management Representative Date: February 24, 2016

Signed on behalf of PT TUV Rheinland Indonesia

Mhd Fundy Cholis Kurniawan Lead Auditor Date: February 24, 2016

APPENDICES

Appendix 1: Details of Supply Chain Certification C ertificate


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Appendix 2: List of Abbreviations CPO Crude Palm Oil P&C Principles & Criteria PK Palm Kernel PKO Palm Kernel Oil PKE Palm Kernel Expeller SCC Supply Chain Certification

Appendix 3: Observations and Opportunities for Impr ovement

No. Observations / Opportunities for Improvement Positif Observation

-

-

Opportunities for Improvement

-

-

-

Appendix 4: Supply Chain Certification Audit Closin g Meeting Summary

Appendix 5: List of Certified Product and Projecti on for year 2015

No. Product Output (tones)

1. PK 67,510

2. PKO 29,029

3. PKE 33,755

Appendix 6: List of Certified Suplier and Buyer

No. Name of certi-

fied Supplier

Volume

incoming

material*

Date of

Incoming

material*

Certifi-

cate No.

Supply

chain

model

Expiry

Date remarks

1 - - - - - - -

2 - - - - - - -


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*) Not applicable during certification assessment, because the facility has not made a purchase the certified product

No. Name non certified

Supplier Product

Contact

Person

1

2

3

4

5

Dst

*) Not applicable during certification assessment, because the facility not listed yet the certified and uncertified supplier.

Roundtable on Sustainable Palm Oil - TÜV Rheinland · PT GAWI MAKMUR KALIMANTAN – KCP SATUI...

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