ST-1 [ ] ST-2 [ ] - RSPO - Roundtable on Sustainable Palm Oil · 2014-11-02 · ST-1 [ ] ST-2 [...

PT. MUTUAGUNG

LESTARI

ASSESSMENT REPORT

Roundtable on Sustainable Palm Oil Certification

[ ]ST-1 [ ] ST-2 [ √] S-1 [ ] S-2 [ ] S-3 [ ] S-4 [ ] Re-Assessment

Plantation Management/Owner : MINAMAS PLANTATION –

SIME DARBY Plantation Sdn Bhd

Plantation Name : Bebunga Factory – PT. Langgeng

Muaramakmur

Location :

Sub District of Pamukan Utara and Pamukan Selatan District of Kotabaru, Province of South Kalimantan

Certificate Code : MUTU-RSPO/014

Date of certificate issue : 16 – 03 – 2012

Date of expiry of certificate : 16 – 03 – 2017

Assessment Assessment

Date

Report Finalization

Date

PT. Mutuagung Lestari Auditor

Checked by

Approved by

ST2 29/05/2011 – 04/06/2011

Taufik Margani; Faruk Ahmad Nasir; Oktovianus Rusmin; Marsudi Eko

Santoso

Reny Rustianingsih

Tony Arifiarachman

S1 17 – 19 January

2013 Taufik Margani, Oktovianus

Rusmin, Ardiansyah, Moh Arif Yusni, Yudwi Wisnu R.

Octo H.P.N Nainggolan

Tony Arifiarachman

Mutuagung Lestari • Raya Bogor Km 33,5 Number 19 • Cimanggis • Depok 16953• Indonesia

Telephone (+62) (21) 8740202 • Fax (+62) (21) 87740745/6

ELetter : [email protected] ● www.mutucertification.com

MUTU Certification • Approved by RSPO Secretariat on June 2008

Submitted to RSPO on:

Approved by RSPO on:

Approved by Certification Body on:

03 April 2013 - 16 March 2013

http://www.mutucertification.com/

PT. MUTUAGUNG

LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 ii Prepared by Mutuagung Lestari for Bebunga Factory – PT. Langgeng Muaramakmur

TABLE OF CONTENT

FIGURE

Figure 1. Location Map of PT. Langgeng Muaramakmur Figure 2. Operational Map of PT. Langgeng Muaramakmur

1 2

1.0 SCOPE of the SURVEILLANCE ASSESSMENT

1.1 National Interpretation Used 3

1.2 Organization Information 3

1.3 Type of Assessment 3

1.4 Location of Plantations, Mill and Area Statement 4

1.5 Description of Supply Base 5

1.6 Dates of Plantings and Cycles 5

1.7 Tonnage Certified 5

1.8 Other Certifications 6

1.9 Time-Bound Plan for Other Management Units 6

2.0 ASSESSMENT PROCESS

2.1 Certification Body 8

2.2 Assessment Team 8

2.3 Assessment Methodology, Assessment Process and Locations of Assessment 9

2.4 Stakeholder Consultation and List of Stakeholders Contacted 10

2.5 Date of Next Surveillance Visit 10

3.0 ASSESSMENT FINDINGS

3.1 3.2

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

11 30

3.3 Conformity Checklist of Certificate and Logo Use 35

3.4 Summary of RSPO Partial Certification 36

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

37

3.6 Summary of Arising Issues from Public, Management and Auditor Responses 49

4.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Signing of Assessment Findings 54

APPENDICES

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

2. Assessment Program 56

3. Glossary 57

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 1 Prepared by Mutuagung Lestari for Bebunga Factory – PT. Langgeng Muaramakmur

Figure 1. Location Map of PT. Langgeng Muaramakmur

PT LMR

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 2 Prepared by Mutuagung Lestari for Bebunga Factory – PT. Langgeng Muaramakmur

Figure 2. Operational Map of PT. Langgeng Muaramakmur

PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 Page 3 Prepared by Mutuagung Lestari for Bebunga Factory – PT. Langgeng Muaramakmur

1.0 SCOPE OF THE CERTIFICATION ASSESSMENT

1.1 National Interpretation Used National Interpretation, RSPO Principles and Criteria (P&C) for Sustainable Palm Oil Production, Republic of Indonesia - RSPO INA-NIWG, May 2008 and RSPO Supply Chain Certification Standard November 2011.

1.2 Organization Information

1.2.1 Company name MINAMAS Plantation – SIME DARBY Group

1.2.2 Contact person Mohamad Pirabaharan

1.2.3 Company address and site address Company Addres :The Plaza Office Tower Lantai 36 Jl MH Thamrin Kav. 28-30 Jakarta 10350 Site Address : Sub District of Pamukan Utara and

Pamukan Selatan District of Kotabaru, Province of South Kalimantan

1.2.4 Telephone +62-21-29926000

1.2.5 Fax +62-21-29922686

1.2.6 E-Letter [email protected]

1.2.7 Web page address www.simedarby.com

1.2.8 Company status Swasta

1.2.9 Management Representative who completed the application for certification

Mohamad Pirabaharan (Head of PSQM Minamas Plantation)

1.2.10 Registered as RSPO member 08 Desember 2004

1.3 Type of Assessment

1.3.1 Scope of Assessment Mill and Estate

1.3.2 Type of certificate Single

1.3.3 Company names listed in the certificate PT. Langgeng MuaraMakmur

1.3.4 Number of management unit 1 (one) palm oil mill unit (POM Bebunga) with FFB from 3 (three) estate unit, i.e.: Bebunga Estae (BBE), Sungai Cengal Estate (SCE), and Bakau Estate (BKE)

1.4 Locations of Mill, Plantations and Area Statement

1.4.1 Location of Mill

Name of Mill Location

GPS

Latitude Longitude

Bebunga Factory Binturung Village, Pamukan Utara Sub District, Kotabaru District, South Kalimantan Province

020 22’25,8” LS

116019’47,00” BT

1.4.2 Location of Supply Base

Name of Supply Base Location

GPS

Latitude Longitude

Sungai Cengal Estate Binturung Village, Pamukan Utara Sub District, Kotabaru District, South

20 24' 12" - 20 28' 14" LS 1160 19' 39" - 1160 23' 30"BT

http://www.simedarby.com/


ASSESSMENT REPORT


Kalimantan Province

Bebunga Estate Binturung Village, Pamukan Utara Sub District, Kotabaru District, South Kalimantan Province

20 20' 00" - 20 24' 14" LS 1160 19' 42" - 1160 23' 47"BT

Bakau Estate Balimea Village, Pamukan Utara Sub District, Kotabaru District, South Kalimantan Province

20 19' 25" - 20 25' 14" LS 1160 14' 47" - 1160 19' 42"BT

1.4.3 Tenure

Private

State HGU certificate No. 133/HGU/BPN 1997 Land Office of Kota Baru District, South Kalimantan Province = 15,533 Ha (included 3,249.27 Ha outside assessment scope of Lanting Estate wich supplied FFB out of Bebunga POM) HGU No. 77/HGU/BPN/97 Land Office of Paser District, East Kalimantan Province = 828.7741 Ha HGU is in process, as per the Introductory Letter of BPN East Kalimantan Province No. 17/II/2011 dated 2 February 2011 = 1,162.22 Ha

Community

1.4.7 Area Statement

Total area 14,215 Ha

Mature area 10,319.61 Ha

Immature area - Ha

Mill 32.42 Ha

Emplashment 155.83 Ha

Infrastructure 358.37 Ha

Nursery - Ha

Occupation 1.044,92 Ha

Others area 1,405.29 Ha

HCV 958.28 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 (%)

Bebunga Factory 60 257.701 54.945 23.10 12.574 4.88 - -

*Source Production Data on January – December 2012

1.5.2 Description of Estate(s)

Name of Estate(s) Total Area

(Ha)

Planted Area (Ha)

FFB (tonnes/year)

Yield (tonnes/ha/year)

Supplied to Mill

FFB (tonnes/year)

%


ASSESSMENT REPORT


Bebunga Estate 3,891 2,882 57,094 19.81 57,094 100

Bakau Estate 5,350 3,160 68,993 21.05 68,993 100

Sungai Cengal Estate 4,974 4,279 83,842 19.60 83,842 100

Total 14,215 10,321 209,929 20.34 209,929 100


1.5.3 Smallholder(s) and other source

Name of sources

Members Location Total Area

(Ha) FFB

(tonnes/year)

Supplied to Mill

FFB (tonnes/year)

%

KKPA ASC 260 KK Desa Binturung 383 4,064 4,064 100

Sekayu Estate - - - - 10,186 -

Betung Estate - - - - 16,458 -

Sangkoh Estate - - - - 1,238 -

Binturung Estate

- - - - 4,884 -

Randi Estate - - - - 3,960 -

Selabak Estate - - - - 585 -

Sesulung Estate - - - - 3,891 -

Lanting Estate - - - - 2,081 -

Pondok Labu Estate

- - - - 177 -

Rampa Estate - - - - 306 -

Total 47,524


1.5.4 Product categories FFB/CPO/PK

1.6 Dates of Plantings and Cycles

1.6.1 Age profile of planted palms*

Year of Planting

Size (Ha)

Years (ha)

1992 192.22 20

1993 117.80 19

1994 436.49 18

1995 1,061.35 17

1996 3,508.95 16

1997 3,021.40 15

1998 328.34 14

1999 275.95 13

2000 348.14 12

2005 375.33 11

2006 212.88 6

2007 425.78 5


ASSESSMENT REPORT


2008 15 4

1.6.2 New Planting area after November 2007 - Ha

1.6.3 Planting Cycle 1stCycle 25 Years

1.7 Approximate Tonnage Certified

1.7.1 Past Annual Claim Certified Product

FFB Production 226,638 Tonnes/year

CPO Production 52,223 Tonnes/year

Palm Kernel (PK) Production 11,053 Tonnes/year

Palm Kernel Oil (PKO) Production - Tonnes/year

1.7.2 Claim Certified Tonnage of FFB

Name of Estates Total Area

(Ha) Planted Area

(Ha) FFB

(tonnes/year) Yield

(tonnes/ha/year)

Bebunga Estate 3,891 2,882 55,575 19.29

Bakau Estate 5,350 3,160 60,880 19.69

Sungai Cengal Estate 4,974 4,279 76,889 18.41

Total 14,215 10,321 193,344 18.73

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 (%)

Bebunga factory 60 193,344 45,919.2 23.75 9,667.2 5 - -

1.8 Other Certifications

1.8.1 ISO 9001:2008/ISO 14001: 2004 -

1.8.2 OHSAS 18001:2007 -

1.8.3 HACCP -

1.8.4 Others -

1.9 Time Bound Plan for Other Management Units

Management Unit

Address Hectarage

(Ha) *) Time Bound

Plan Status

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

7,734.60 2009 Certified

PT. Tunggal Mitra Plantations Rokan Hilir District – Riau 13,836 2009 Certified

PT. Aneka Inti Persada Pekanbaru and Siak District– Riau 11,134 2010

Certified

PT. Bahari Gembira Ria Muaro Jambi District – Jambi 1,202.04 2010 Certified

PT. Bina Sains Cemerlang Musi Rawas District- South Sumatera 6,513 2010 Certified

PT. Bhumireksa Nusa Sejati Indra Giri Hilir District– Riau 25,662 2010 Certified

PT. Kridatama Lancar Seruyan and Kotawaringin Timur District 14,779.92 2010 Certified


ASSESSMENT REPORT


– Central Kalimantan Province

PT. Lahan Tani Sakti Rokan Hilir District– Riau 3,759.02 2010 Certified

PT. Ladangrumpun Suburabadi

Tanah Bumbu District – South Kalimantan Province

6,077 2010 Certified

PT. Sajang Heulang Tanah Bumbu District – South Kalimantan Province

7,794 2010

Certified

PT. Bersama Sejahtera Sakti Kotabaru District – South Kalimantan Province

13,925 2010 Certified

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

16,601.66 2010

Certified

PT. Budidaya AgroLestari Ketapang District – West Kalimantan Province

1,002 2011 Audited

PT. Guthrie Pecconina Indonesia

Musi Banyuasin District – South Sumatera Province

10,139.91 2011

Certified

PT. Langgeng Muaramakmur Kotabaru District – South Kalimantan Province

16,361.77 2011

Certified

PT. Mitra Austral Sejahtera Sanggau District – West Kalimantan Province

8,741.29 2011 Audited

PT. Padang Palma Permai Aceh Tamiang and Aceh Timur - Nangroe Aceh Darussalam

6,451.99 2011

Audited

PT. Paripurna Swakarsa Kotabaru District – South Kalimantan Province

14,892 2011

Certified

PT. Perusahaan Sri Kuala Aceh Tamiang District - Nangroe Aceh Darussalam

1,128.90 2011

Certified

PT. Sandika Natapalma Ketapang District – West Kalimantan Province

8,406.21 2011

Audited

PT. Swadaya Andika Kotabaru District – South Kalimantan Province

10,361.18 2011

Certified

PT. Tamaco Graha krida Morowali District – Central Sulawesi Province

4,145.00 2011

Certified


ASSESSMENT REPORT


2.0 ASSESSMENT PROCESS

2.1 Certification Body

PT Mutuagung Lestari

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

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

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

2.2 Assessment Team

2.2.1 Lead Assessor and Assessment Team

S-1 1) Taufik Margani (Lead Auditor Witnesser). A bachelor of Forestry, Majoring in Forest Management. A specialist in Environment. He had led a number of audits for Sustainable Forest Management in Indonesia (under the scheme of LEI-Lembaga Ekolabel Indonesia/Indonesia Ecolabel Body and FSC-Forest Stewardship Council) and Lead Auditor for FSC Chain of Custody. Other experiences: He was the certified Lead Auditor of IRCA for Environmental Management System and Quality Management System. Since 1999, he had worked for an independent certification body and had conducted a number of Audits of Environmental Management System, Quality Management System and RSPO in Malaysia and Indonesia. Currently, he works as The General Manager of Management System Certification.

2) Oktovianus Rusmin (Lead Auditor Witnessed). Bachelor’s Degree in Social & Political Sciences Department of Anthropology. Specialists in the field of Social and Cultural (Social Impact & Conflict Resolution) and HCVF. Followed the Forest Management Auditor Training (FSC Standard), ISO 14001 Environmental Management System Training & SVLK (wood legality) auditors, Indonesian Sustainable Palm Oil (ISPO) Auditor, Management System Certification (ISO 9001-2008/SNI 19-9001:2008) and RSPO Lead Auditor Training by Proforest & Wild Asia in Kualumpur. He was several times involved in the assessment of Sustainable Forest Management Certification (Standard LEI). Had worked at the Center for the study of Anthropology, University of Indonesia; and experts to the field of Social Tropical Forest Trust (TFT) Indonesia. He was numerously involved the Social Impact Study and Identification HCV in Oil Palm Plantations and natural forest concessions. In this assessment activity, he conducted assessment of social and land concession.

3) Yudwi Wisnu Rahmanto (Auditor). Bachelor of Forestry with Silviculture background. He has attended in

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

4) Ardiansyah (Auditor) Bachelor of Forest Resources Conservation, Department of Forestry, Bogor Agricultural

University. He has followed several activities such as preparing EIA document for Palm Oil Plantation and Industrial Plantation Forests, assistance in the GAP analysis, and helped draft the HCV document. It has been several times following audit activities related to sustainable palm oil certification system as an auditor. In this Surveillance-1 assessed the environmental aspects, soil and water conservation..

5) Moh. Arif Yusni (Auditor) A bachelor of Agriculture, majoring of Plant Pest and Deseases (Plant Protection). He has a working experience for 2 (two) years in oil palm Plantation Company in Indonesia. Trainings attended namely: Indonesian Sustainable Palm Oil (ISPO) Lead Auditor training course. Now he worked at Professional Certification Body. he has been several times following audit activities related to sustainable palm oil certification system as an obeserver and auditor. In the assessment activity, he assessed on, best practices, environment aspect, and workers welfare

http://www.mutucertification.com/

mailto:[email protected]


ASSESSMENT REPORT


2.3 Assessment Methodology, Assessment Process and Locations of Assessment

2.3.1 Figure of person days to implement assessment

S-1 Number of auditors : 5 persons Number of days for S-1 at site : 3 days Number of working days for S-1 at site : 15 Man days

2.3.2 Detail process of assessment

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

2.3.3 Locations of Assessment

S-1 Field visit was conducted at location that has an issue related to company operational. Location is determined

according to result of public consult and result of document review. Determination of location sample refer to

provision of the formula (x= 0,8 √y). Locations which visited on S1 activity are following.

Location 1. Bebunga Mill. Field observation related to mill operation from weight bridge, TBS grading on loading ramp, processing mechanism.

Location 2. Bebunga Mill. To survey application of SMK3 at processing station, such as , Thresher, Digester, Nut Cracker, Engine Room, Boiler.

Location 3. Hazardous Waste Temporary Warehouse Bebunga Mill. To survey availability of waste B3 that is remaining at storage location, to verificate balance of the waste, to observe availability of oil trap, etc.

Location 4. Waste Water Pond / Disposal (WWTP). To monitor condition of waste water pond/ disposal and make sure that there is no leakage on pipeline for land application

Location 5. Lintang Jaya Village. To interview village chief II regarding to program DC/CSR PT. LMR, social interaction between company and society around plantation area.

Location 6. Balaimea Village. To interview society leader regarding to program DC/CSR PT. LMR, social interaction between company and society around plantation area.

Location 7. Segendang Village. To interview Segandang village chief regarding to program DC/CSR PT. LMR, social interaction between company and society around plantation area and progress for solution of problem about field between some villager and PT. LMR.

Location 8. Area HCV 4 Divisi IV Blok C19. To observe related to monitoring and management area HCV 4 such as sumur 7s

Location 9. Boundaries Pole Bakau Estate Blok E29. To observe condition of boundaries HGU PT. LMR. (Peg 33= great, 124=small, 34=great), condition is good and well maintained.

Location 10. Boundaries Pole Sungai Cengal Estate Blok E45. To observe condition of patok batas HGU PT. LMR. (Peg 23= grea, 81=small, 22=grea), condition is good and well maintained.

Location 11. Bebunga Estate, Divisi I, Blok G21. To Observe related to implementation of wastewater land application and condition of wells. Wells which in well condition is there is no waste spill flow to water flow.

Location 12. Bakau Estate, Divisi I, Blok C39: To interview harvester related to Personal Protective Equipment


ASSESSMENT REPORT


(PPE) and labor health and safety insurance. Company has equipped PPE, and harvest tools according to labor’s needs.

Location 13. Bakau Estate, Divisi III, Blok B48. To interview an enricher related to compliance of Personal Protective Equipment (PPE), health and safety insurance and area which will be applied with fertilizer. Company has completed the PPE, health and safety insurance and also labors has already understand about places which can be applied with fertilizer.

Location 14. Hazardous Waste Temporary Warehouse Bakau Estate. To observe related to storage implementation of hazardous and poisonous material (B3), hazardous and poisonous waste, labor’s houses, fire extinguisher and first aid emergency. B3 warehouse has been completed with safety data sheet, PPE, etc. B3 waste warehouse has received a licence and has been symbolized.

Location 15. Bakau Estate, Divisi III, Blok F38. Observation related to erosion controlling on waving area. Erosion controlling done by making rorak and safe soil cover plant in well condition.

Location 16. Bakau Estate, Divisi III. Observation related to facilities and infrastructure given by company to a worker. Facilities and infrastructure is in good condition, household waste taken by company and placed at landfill.

Location 17. Klinik Central, Bebunga Estate. O PT Langgeng Muara Makmur bservation related to health facilities and infrastructure and medical waste controlling. Medical waste is sent to third parties that have a licence to destroy medical waste.

Location 18. Bakau Estate. To interview spraying worker related to compliance of Personal Protective Equipment (PPE), labor health and safety insurance and area that applied with chemist.

2.4 Stakeholder Consultation and List of Stakeholders Contacted

2.4.1 Summary of stakeholder consultation process.

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

2.4.2 List of stakeholder contacted

Please find appendix 1

2.5 Determining Next Visiting

The next visit (Surveillance 2) will be determined one year after this surveillance-1


ASSESSMENT REPORT


3.0. ASSESSMENT RESULT 3.1. Summary of Assessment Report of the RSPO Certification

MUTUAGUNG LESTARI has conducted a Surveillance-1 assessment of PT Langgeng MuaraMakmur– Bebunga POM,

Sime Darby Operation consisting of 1 (one) mill and 3 (three) oil palm estates. MUTUAGUNG LESTARI found that PT

Langgeng MuaraMakmur comply with the requirements of RSPO Principles & Criteria and National Interpretation, RSPO

Principles and Criteria (P&C) for Sustainable Palm Oil Production, Republic of Indonesia - RSPO INA-NIWG, May 2008.

Therefore MUTUAGUNG LESTARI recommends a certificate of compliance is maintained.

Ref Std.

VERIFICATION RESULT of MUTU-Certification

PRINCIPLE #1 COMMITMENT TO TRANSPARENCY

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

External communication logbook are available in each estates, consist of incoming external letter to management Sungai Cengal Estate 32 incoming Letters and 1 information request. Example: Letter from Head of Binturung Villlage no. 590/005/KD-BNT/XI/2012, dated November 30, 2012, regarding implementation and socialization of plantation rejuvenation at Sungai Cengal Estate. Bakau Estate 70 incoming Letters, no information request, only help request. Example: Letter from head of Pamukan Indah village no. 230/KD-PI/XI/2011 dated November 30, 2011, regarding request for heavy equipment in order for road maintenance.. Sungai Cengal Estate Example: Letter PSD-Ekt/20/XII/2012/s dated the 22nd December regarding letter to head of Binturung village no: 590/005/KD-BNT/XI/2012 Dated november 30, 2012 about explanation / socialization the rejuvenation palm plantations in Sungai Cengal estate Bakau Estate Example: letter from Bakau Estate manager no. BKE-Eks/057/XII/2011/s as response letter to head of Pamukan Indah Village November 30, 2011 regarding the request for heavy equipment for road maintenance. According to SOP of information request (050/LMR-INF/C11 shelf recording information requests and responses is 5 years.

Status: Full Compliance

1.2 Management documents are publicly available, except where this is prevented by commercial confidentiality or where disclosure of information would result in negative environmental or social outcomes.

Revised for SOP of information Request, icluded a list of a document and accessible. The information can be accessed by the public (stakeholder):

1. Land Clearing area 2. Jamsostek Payment Receipt 3. Labor’s Medical Payment Receipt 4. Labor’s General Facility 5. Pests and Diseases Data 6. Light Vehicle and Heavy Equipment Data 7. Support Machines Data 8. CSR Data 9. Bridge Data


ASSESSMENT REPORT


10. Road Length Data 11. Work Building Data B 12. General Building Data 13. School Building Data 14. Fertilizer using 15. Agrochemical using 16. SKU Labor Data 17. School’s Student Data

Information that is not accessible to public: 1. Company’s Financial Balance Data 2. Data contains company’s bussines strategy 3. Data related to state secrets 4. Employee’s Data 5. Company’s Licence 6. Technical SOP 7. Personal data related to medical aspect


PRINCIPLE #2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

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

There is evidence of compliance with regulations by company in the form of lists regulations that has been revised on the 1st December 2012 and following evaluation. Evaluation describe compliance with any regulation referred Example:

1. Company are complies with statue No. 5, 1960 its proven by land use title no.12 (15,533 ha), no.4 (828.774 ha), Total 16,361.77 Ha; and for ±1,100 ha area, there is evidence (location permit)

2. Company has reporting Environmental Management Plan / Environmental Monitoring Plan related to PP 27 year 1999 every six months.

3. Paraquat has not been used since march 2011 due to Permentan No. 7/Permentan/SR- 140/2/2007 and internal policy management.

4. Based on field survey, Riparian zone are compliance with regulation UU no 41 1999 (>50 m) If there are changes to the regulations, companies will make adjustments, or perform periodically evaluation Evidence for regulatory adjustment, for example:

1. Minimum fee determination in south kalimantan province in 2013 in accordance with south kalimantan governor decree No.188.44/0502/KUM/2012 on 22 october 2012. Based on that Decree the implementation of salary payment to workers in PT LMR will be adjusted to the Minimum salary in the Province and will begin enforced in January 2013.

2. Government Regulation No. 27 in 2012 about the Environmental Permit. Environmental Permit changes shall be proposed if there is a changes in business scope. Up to now, business scope of PT LMR have no changes..

There is an evaluation form for regulatory compliance for Estate and mill. The company has completed with evidence (the document/Program), such as statue No. 5 of 1960, article 28 obout land use title. Land use title shown indicate that company have HGU No. 12 (15,533 Ha), No. 4 ( 828.774 ha ) with a total area 16,361.77 ha.


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

Total area of the PT. Langgeng Muara Makmur is 17,461.77 Ha. There are other areas about 1,100 Ha still in administration (progress for Certificate HGU). More land tenure legal document, i.e:

(1) HGU certificate No. 133/HGU/BPN 1997, area 15,533 Ha, issued by Land Agency district Kota Baru, South Kalimantan Province

(2) HGU certificate No. 77/HGU/BPN/97, area 828,774 Ha, issued by land agency District Paser East Kalimantan Province.


ASSESSMENT REPORT


(3) There is recent progress of HGU certificate administration for area 1,162.22 Ha in the form of a letter from the Managing Director & Director of PT Langgeng Muara Makmur (No.: 203/LMR/UM/PSDS/X/12, October 23, 2012 to regent of Paser regarding Application for Permit related to Renewal Term Location PT. LMR and below is receipt and the copies from respective (BPN Paser District, Department of Agriculture and Plantation Paser District & Paser District Secretariat). There are also other related files: - Letter from the Department of Agriculture and Plantation Tanah Grogot No. 525/93.2/PUPP-BUN dated

June 13, 2012 to the President Director of PT. Langgeng Muara Makmur regarding completion for HGU certificate process.

- Letter from the Land Agecy of Paser District No.04/400.9/64.01/IX/2012 dated September 3, 2012 to the Paser regent regarding application for area permit recommendations of PT. Langgeng Muara Makmur.

Other legality such as Company Registration owned by PT LMR No..09.03.1.01.06054 dated October 11, 2005 and Permanent Licenses No.15/T/PERTANIAN/INDUSTRI/2006 dated January 4, 2006, as a formal legal forms for managing oil palm plantations. Buku Tugu as boundary evidence are available consisting of: (1) Bebunga Estate (currently under HGU administration) = 1.100 Ha (29 pieces Main Pal, Pal Secondary 145 pcs); (2) Cengal Estate River = 4,974.20 Ha (23 pcs Main Pal, Pal Secondary 64 pcs); (3) Bakau Estate = 5,349.91 Ha (58 pcs Main Pal, Pal Secondary 234 pcs); and ( 4) Lanting Estate = 3,249.27 Ha (30 pcs Main Pal, Pal Secondary 73 pcs). SOP Maintenance for BPN Stakes are available (057/LMR-PPBC/C13). Maintenance has been done includes cleaning and painting the stakes.


2.3 Use of the land for oil palm does not diminish the legal rights, or customary rights, of other users, without their free, prior and informed consent.

The company already has a legal business license i.e HGU Certificate No. 133/HGU/BPN/97 dated October 28, 1997, valid until Nov 22, 2032 (35 years) covered of 16,361.774 Ha and 1,162.22 Ha area is still in the application process. Based on the final report of the identification of HCV, there is no traditional right to be in the PT. LMR area. Furthermore, according to the letter from BPN Kotabaru district South Kalimantan No.. 000/03/KP-10, dated 2 September 2010 regarding Status of Rights of tradition, Communal Land, communal right in the Kotabaru district not found..


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

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

The company owns Budget Presentation for 2013/2014 and Projection 2013/2014; 2014/2015 and 2015/2016 which consists of (1) Areal Statement (2) New Planting status, (3) Nursery Status, (4) projected average production and production costs in Rp/kg, and harvested area. The company already has a replanting plan for the next 5 years :

Year Estate

SCE (Ha) BKE (Ha) BBE (Ha)

2012/2013 181 110 -

2013/2014 170 306 201

2014/2015 260 305 218

2015/2016 259 229 187

2016/2017 234 216 240


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

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

No changes in the procedures related to the plantation operations at PT LMR from LC to harvesting and transportation. All the procedure’s provision is still same as Main Assessment (ST2) and still valid.


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At Bebunga Mill, there is one (1) new Procedure document of Product Identification and Product Search Capabilities in PALM OIL MILL Minamas Plantation No. Policy: RSPO/501/SCCS/LMR) Rev. 01, dated November 1, 2012. This procedure made for comply with PT. LMR supply chain model system (mass balance). Inspection and monitoring of the operational activities carried out regularly by: daily, weekly, monthly and annual conducted by the department of internal superisor.

(1) Internal audit 4 (four) months conducted by internal auditors Region, (2) Safety Officer each month, conducted by the Safety Officer. (3) Quality examination every month, conducted by PSQM. (4) Comprehensive audit conducted every 6 (six) months, carried out by Mill and Plantation advisory from Kuala

Lumpur.

Recording of all plantation and mill activities are well documented, such as daily report of production on January 16, 2013, and all operations are monitored well (CPO Processing / Kernel) Summary.


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

Companies conducting soil analysis every 5 years and leaf analysis every 1 (one) year. The company has a record of activities, such as:

1. Final Report of Semi-Detailed Soil Survey In Cengal Estate Plant (2008), Bebunga Estate (in 2009) and Bakau Estate (2009). In every report contained annex result of laboratory analysis of soil samples at each SPL, while the parameters measured include: texture, acidity (pH), content of C, N, P, K, Mg, Ca, Na, BS, CEC, Al and H. Based on information from the MRC staff, the activities of semi-detailed soil survey conducted every 5 years.

2. Based on report of leaf samples analyze by Minamas Research Centre in 2012, soil survey result covering Block Codes and planting year the sample was taken and the amount of nutrients in the leaves (Ash, N, P, K, Mg, Ca & B).

The results of soil and leaf analysis activities is a reference to determine fertilizing recommendations (organic and organic) in order to maintain soil fertility in area of PT. LMR. This is evidenced by the availability of the document fertilizer recommendations in 2012 - 2013 for Bebunga Estate, Sungai Cengal Estate and Bakau Estate. Records of the results of these activities is available, for example:

1. Sungai Cengal Estate until December 2012 for 2012 -2013, has been realized appliction NK blend 777,441 kg from projection 2,324,896 kg and fertilizing HGFb 20,407kg from projection 20,407kg. Meanwhile, for empty fruit bunch application on division 2 has realized 1.617 tons from projection 4.534 tons.

2. Bakau Estate until December 2012 for 2012 -2013 has been realized fertilization blend NK 494.198 kg from plan 1,670,006 kg and 11.357 kg of HGFb fertilization from projection 18.621 kg.

Based on information from the company staff, fertilization application for period 2012-2013 was late because of in the first semester (July-December 2012) in the end of the year, there are many rainy days, but the company already has an action plan to complete the fertilization program.


4.3 Practices minimize and control erosion and degradation of soils.

There is a detailed soil survey that identifies the presence of the soil type containing acid sulfate covering +1500 ha at Sungai Cengal Estate, some areas has been managed as a commercial crop plantations. There are also suitability assessment of land for replanting areas for period 2012/2013 in Sungai Cengal Estate and Bakau Estate. Based on assessment result, there are marginal land that cannot be managed covered 1,82 Ha in Sungai Cengal Estate and that area is not replanted.. Road maintenance for July 2012 - June 2013 at Sungai Cengal Estate is 28,371 meter and until S) audit (January 2013) the realization of the road maintenance is 19,735.76 meters. Whereas for planning and realization of road hardening is not done in the period July 2012 - June 2013. Management for marginal land (acid sulfate) in PT LMR was done by water management and the company also monitors the water level periodically.


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


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Practices to maintain water quality and water supply carried by the following ways:

Creating a mark for buffer zone (riparian) for example yellow circle on the plant oil palm trees.

Creating a mark for buffer zone (reservoir) such as yellow circular on the plant oil palm trees.

Planting trees on riparian, such as mahogany and sungkai.

Installing the sign board on riparian.

Prohibition use of chemicals such as fertilizers and pesticides at riparian. PT LMR has tested the water quality of rivers and water reservoirs regularly (every 6 months). Avalable records of river water quality monitoring at 3 locations (Tamiang, Bebungan and Lintang) and the quality of water in the reservoir at 7 locations (1 in Bebunga factory, 3 Sungai Cengal Estate, and 3 in Bakau Estate). The Company has evaluated the results of water quality testing with standard determined for the government. Available result of monitoring and measuring for BOD of waste water every month. The results of recent measurements on October 2, 2012 BOD value is 22.8 mg / lt. Based on the monitoring result, BOD has accordance with quality standard. The monitoring result is regularly and consistently reported to BLH every 3 months. Available record of water usage for TBS processing period January-September 2012. Data of water usage recorded in the CPO / Kernel Processing Daily Report, for example: October 10, 2012, Water for the Boiler (916 m 3); Water for Process (434 m 3); Water for Domestic (230 m 3); Height of water reservoirs 1 (210 cm); Height water reservoirs 2 (221 cm).


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

Pest and disease control programs conducted by the company i.e: 1. Integrated Pest Management practice, consists of: Census; implementation BOB (Barn Owl Box / owl),

beneficial Plant, Pheromone, yearly, and evaluation 2. Available SOP Palm Oil Plant Protection (No. Policy one; monthly implementation schedule every year, and

Evaluation: 110/EST-ARM/08), set up the prevention and control pests biologically and chemically. For example: a. Prevent Oryctes rhinocerus attacks by planting Mucuna SP along the sides of the stem / stump palm (old

plants), and stump old plants that have been weathered. b. Controlling nettle caterpillars bagworms by monitoring and observe attack signs, and the development of

Useful Plants for natural leave pest control to encourage the population of natural enemies (predators and parasites) of caterpillars bag and caterpillars fire.

c. Rats controlling by detect and census mice attack with an interval of 3 months, and control by using owl. Record of pest and disease control activities conducted by the company are available, for example:

1. Bakau Estate Based on documents verifications in the year of 2012 there were pest attack exceed economic threshold, that was nettle caterpillars attack (economic threshold 5 tail/sheath) ie., in September 2012 (average: 19.93 tail /sheath), in October (average: 29.90 tail/sheath) and December (average: 36.2 tail/sheath), while for the other pest attack is still below the economic threshold. Based on the verification documents and field visit, efforts to control the blocks that level attack above the economic threshold has been done. The company has conducted monitoring owls, based on observation result on December 2012, from 66 owl houses there were 29 adults, 19 chicks and 40 eggs.

2. Sungai Cengal Estate Based on the documents verification in the year of 2012, there were pest attacks which above the economic threshold, that nettle caterpillars attack (economic threshold 5 tail / sheath) that in September (average: 98.38 tail/sheath), in October (average: 15.17 tail / sheath) and in December (average: 32.20 tail / sheath), while for the other pests still below the economic threshold. Based on the verification documents and field visit, efforts to control the blocks that level attack above the economic threshold has been done. The company has conducted monitoring owls, based on observation result on December 2012, from 16 owl houses, there were 16 adults and 1 chick.


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Monitoring of pesticides toxicity is done by the company on a regular basis every month, for example, provided recording monitoring the toxicity of pesticides in December 2012

Type of Pesticide Active material usage (L)

active material per hectare

(L / ha)

Active material per ton FFB

(L / ton FFB)

Prima up 887.76 0.281 0.0214

Touch down 453.93 0.1437 0.0109

Decis 84.70 0.0268 0.0020

Meta prima 75.81 0.024 0.0018

Starane 20 0.0063 0.0005

Kenlon 53 0.0168 0.0013

Dejavu 109.9 0.0348 0.0026


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

The company already has list of Chemicals used and inform commercial name, active material, active material ingredients, LD - 50, Nature of pesticides, OPT targets and MSDS (Material Safety Data Sheet) of each chemicals used.The chemicals used by the company are:

Commercial name Active ingredient Type Weeds target No. registration

Starane Fluoroxypir Systemic Wide leaf weeds RI. 854/7-2009/T

Dejavu Fluoroxypir methyl ester

Systemic Wide leaf weeds RI.010130120103827

Kenlon Triklopril butoxide, ethyl ester

Selective General Weeds RI. 01030120062433

Metaprima Metyl metsulfuron Selective Wide and narrow leaf weeds

RI. 1897/8-2008/T

Touchdown Glyphosate potassium

Contact Lalang, Wide and narrow leaf weeds

RI. 2015/9-2008/T

Decis Deltamethrin Kontaks Pest control RI.387/11-2002/T

Basta Glufainate amm Systemic Wide and narrow leaf weeds

RI 1113/12-2008/T

Prima up Isoprolamina glyphosate

Contact Wide and narrow leaf weeds

RI.1779/11.2007/T

The company monitors the use of pesticides conducted every month. for example, based on the usage result in December:

Type of Pesticide Active material usage (L)

Active Material per Hectare

(L / ha)

Prima up 887.76 0.281

Touch down 453.93 0.1437

Decis 84.70 0.0268

Meta prima 75.81 0.024

Starane 20 0.0063

Kenlon 53 0.0168

Dejavu 109.9 0.0348

The Company has conducted spraying technique training activities in GOR Bebunga Estate on 21 April 2011, which


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attended by 52 participants including Sprayer team PT LMR.The training was trained by Pesticides supplier (PT Dharma Guna Wibawa). Based on field visits in the B3 BBE waste warehouse, the management of used pesticide package is accordance with SOP Work Instructions about Handling of pesticide package waste (No. 701/IK-TSA-ESH/10) where empty container shipped to flushing (BSS house) then cleaned up containers (at least 3x rinsing) and rinse water stored in tanks for reuse in spraying. Once the condition of the packaging is really clean and then sent to a temporary storage B3 warehouse. Based on a document review and visit to the warehouse, on pesticides storage there is no pesticides Group 1 A and 1 B WHO used by the company. Based on field visits and interviews with spray team in Division III Sungai Cengal Estate, they said that if there is a worker who is nursing or pregnant, they will be transferred to other work unrelated with chemicals.


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

No significant changes related to policies health and safety program for PT. LMR. Kind in implementation of K3 policy by creating and delivering reports to P2K3 of Manpower and Transmigration agency periodically every 3 months. The report presents data include: Organizational Structure P2K3; Summary of Accident Reports; Recommendations from P2K3 to the Company; Chemistry Working Environment; Cleanliness and Lightness Inspection Reports; Report of safety tools inspection; Public Announcement of Employee’s Health Checking. Based on document P2K3 4th quarter (October-December 2012), the number of reported accidents during the period include BKE (16 cases), BBE (3 cases), SCE (9 cases), BBF (0 cases).

Person in charge of K3 programs in each management unit are: Sungai Cengal Estate (Mr. I Wayan Suadnya), Bakau Estate (Mr. Oscar Tamba), Bebunga Mill (Mr. Juharuddin Nasution). Last meeting P2K3 held on October 6, 2012 was attended by 15 participants (Sungai Cengal Estate), October 31, 2012 which was attended by 17 participants (Bakau Estate), January 9, 2013 was attended by 16 participants (PALM OIL MILL Bebunga). Agenda of the meeting focused on the Discipline for APD usage, Accident Investigation, waste B3 delivery activity and socialization / reminder about the importance of safety for temporary workers, suppliers, contractors and other employees.

Form of attention and responsibility to all employees related to SMK3 by company done by means: provided social assurance for workers, which paid to the relevant institutions and well timely, and health check for employees. From the result of medical check up in September 2012 (Sungai Cengal Estate) and October 2012 (Bakau Estate, PALM OIL MILL Bebunga), all employees of PT. LMR not identified any serious health problems and can still be addressed through therapy and medication / vitamins.

Records of risk analysis (HIRAC) applicable to plant and mill has no significant change. During a visit to the mill, it appears that the signs and HIRAC board were sufficient informative to control work risks that may occur. In addition, adherence to every worker when using of Personal Protective Equipment has been fairly well implemented. In addition, PT. LMR applied Card and Safety Observation (SIME Card) as one of the efforts to improve the culture of K3 and achieving zero accidents.

: Training records related to K3 program that have been implemented are following:

- Fire Simulation: December 1, 2012, for the entire staff, safety officers and firefighters of all company across the area Pamukan and Sungai Durian (PTLMI, PT. SAA, PT. LMR, PT. PSA). Attended by 126 participants.

- Fire Simulation: January 16, 2013, for mothers of staff, maid, and committee caretaker representatives from Estate & Mill. Attended by 52 participants.

- Usage of PPE, Safety Tips during a lightning storm. Dated December 7 to 8, 2012 in BKE, attended by 52 people.

- Training for all areas P3K Pamukan: 11 September 2012, attended by 24 participants.

Standby emergency response procedures has no changed in the document, but there are significant development regarding the implementation of training to workers. Evacuation routes at each work station either in the plant or in the mill looks very adequate.

Completeness of emergency response and safety equipment is quite good and well maintained, the equipment includes extinguisher, Hydrant, P3K Box, Water Tank and APD. Workers who have been trained K3 program is work in suitable place / location. The results of field observations PALM OIL MILL: Mr. Slamet (Opr. Grading), Mr.. Jamaluddin (Opr.


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Sterilizer), Mr.. Setu (+ Mechanic Welder).

Total work accident at PT. LMR during the year 2012 as many as 154 cases, 385 lost workdays. Records are stored well in Safety Officer monthly report, while the evaluation of the determination of root cause and corrective actions are listed in the form Accident Investigation Reports every event in the form of recommendations. In addition, the form of the corrective actions taken to further reduce the risk of accidents, PT. LMR has SIME Observation Card. In the SIME Card contains Positive Intervention Culture contains Mini Checklist as follows: Reaction People, Procedures, Outstanding People, Governance Area, Tools / Equipment / Vehicle, PPE, Safe Action Observation, Unsafe Measures Observation, Unsafe Conditions Observations.


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

The company has made matrix identification of training needs for each class of employees, which include training programs, trainees and plan and realization of activities, such as

Harvester training needs are training harvesting, sorting, general K3, ISPO / RSPO

Chemist Operator training needs are training chemist activities, general K3, ISPO / RSPO

Mandor 1 training needs are about harvesting, pest control, fertilizing, spraying, sorting TBS, replanting, fire fighting, general K3, P3K, ISPO / RSPO

Records of training activities is stored in document that describes training data that has been followed by employees, including certified or not certified. For example, available for employee training records on behalf of Pandi as harvester, where training has followed the harvest training on June 21, 2012 and K3 training on July 1st, 2012. In selecting and determining contractor, based on the description by the company result, requirements proposed by the company include adequate work experience, and an appropriate offer price. The company's efforts in improving the competence of local contractors conducted training for contractor, example:

Training for building contractors on November 10th, 2012 on the implementation of the tender procedure and contract the contractor

Training for heavy equipment contractor on November 16th, 2012 on safety and technical aspects of job


PRINCIPLE #5 Environmental responsibility and conservation of natural resources and biodiversity

5.1 Aspects of plantation and mill management, including replanting, that have environmental impacts are identified, and plans to negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continuous improvement.

Environmental documents of PT LMR consists : Environmental Impact Analysis (EIA) Palm Plantations and Mills on behalf of Langgeng Muara Makmur approved

by the Head of Planning, Secretary of the Central Commission, Agriculture Department No.

008/ANDAL/BA/II/1995 dated February 27th, 1995.

Environment Management Document (DPLH) and Decree from Environment Agency (BLH) Paser, Paser District

No. : 660.1/210/DPLH/BLH2011, dated May 24th, 2011 regarding Recommendation on Palm Oil Plantation DPLH

activities covering 1.213 ha located at Batu Engau dan Tanjung Harapan Subdistrict, Paser District, East

Kalimantan.There are 11 aspects to be monitored in accordance with approved DPLH document.

Available implementation report of Environmental Management Plan (RKL) and Environmental Monitoring Plan (RPL)

are conducted periodically (every 6 months), for example, reports of RKL and RPL Period I Year 2012 (January-June

2012) that was submitted with covering letter No. 025/LMR/PSQM/VIII/2012 and accepted by BLHD South Kalimantan

(stamped) on September 18th, 2012. Report of RKL and RPL contained all aspects in the EIA document and replanting

activities in Sungai Cengal Estate and Bakau Estate.

Based on the study document EIA (ANDAL, RKL and RPL) and report of RKL and RPL period I in 2012, There did not

find difference in the operation and scope of area, so unnecessary revise document RKL and RPL.



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5.2 The status of rare, threatened or endangered species and high conservation value habitats, if any, that exist in the plantation or that could be affected by plantation or mill management, shall be identified and their conservation taken into account in management plans and operations.

Available record and identification report of protected, uncommon, rare or endangered species and habit with conservation value in PT. Langgeng Muara makmur. Identification activity conducted by YASBI (Foundation for Sustainable Palm Oil Indonesia). Based HCV assessment, in PT. LMR area, there are areas classified as habitat with high conservation value (HCV), as follows:

- HCV 1 : Bakau (26.84 ha). Bebunga (54.20 ha) and Sungai Cengal (236.76 ha) - HCV 2 : Sungai Cengal (222.66 ha) - HCV 3 : Bakau (26.84 ha). Bebunga (29.00) and Sungai Cengal (233.27 ha) - HCV 4 : Bebunga (51.17 ha) and Sungai Cengal (225.76 ha) - HCV 5 : Bebunga (25.20 ha) and Sungai Cengal (3.10) - HCV 6 : Sungai Cengal (3.40 ha)

Management of PT. Langgeng Muaramakmur has conducted several attempts, as follows: 1. Available SOP : 1 Handling Wildlife (No.033/LMR-4-PSL/C7, dated December 1st, 2010) approved by the Chief of

SOU 2) Watershed Protection (No.031/LMR-DAS/C7, dated December 1st, 2010 approved by the Chief of SOU. 2. Available Monitoring Document HCV PT. LMR in area Bebunga Estate, Sungai Cengal Estate and Bakau Estate. In

the document describe the kinds of activities associated with HCV management and time target. 3. Activities to protect species and HCV has been done, include area determination and installation of signage in

accordance with the existing type of HCV and available evidence of attendance lists, photos and materials that the Company has conducted outreach activities related to presence of protected, uncommon, rare or endangered species identification and habit with conservation value to the employees and surrounding community.

There is also report of follow-up program for enrichment of rare and protected species such as Ulin Gaharu and several other wood species in river areas or other places. Conducted Socialization to employees and surrounding community, proven the attendance list and material list. Examples, socialization on May 21th, 2011 regarding installation poster and warning signs in the protected area to villagers in Segendang, Lintang Jaya, Mulyoharjo at BBE. Based on the observation, the Company has installed signs, posters and warning signs associated with protected species, such as those installed at Sungai Cengal Estate (Block C 19) and in Bakau Estate (Block A035) There are also special officer to monitor HCV implementation, namely: Tadik Hariyanto for SCE with Appointment Letter No. 02/SCE-int/XII/10/S dated December 1st, 2010; Sabitun for BBE with Appointment Letter No. 216/BBE-sk/03/2011/S dated March 1st, 2011, and Togu Hopusan Tambunan for BKE with appointment letter no. SK / RSPO-BKE/02/12/2010. There is also evidence for the training of HCV staff, dated November 8th, 2011.


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

PT LMR has identification sources of waste and pollution in the Mil and Estate. Waste classified into hazardous and non

hazardous. hazardous waste managed by collaboration with third party that has licence, while the non- hazardous

waste managed by considering health and environmental aspects.

Waste management has been carried out according identification waste sources to avoid pollution and has been

documented, for example:

hazardous waste documentation contained in Warehouse Card – Central : date, received from / used for, in, out,

and stock. hazardous waste managed by stored for maximum of 90 days in hazardous waste building then sent

to licensed collector.

Documentation of effluent and empty bunch application contained in Management Committee Meeting. Effluent

and empty bunch applied.

PT LMR have:

hazardous waste building (TPS B3) in BBF accordance with regent Kotabaru decree (No. 188.45/125/KUM/2011


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dated March 8th, 2011), valid for 5 (five) years. hazardous waste is maximum stored for 90 days in BBF.

Certificate No.660/416/BLHD issued by the Environment Agency Kotabaru on November 19th 2012 explained

about permit for hazardous waste storage for maximum 15 days in Bebunga Estate, Sungai Cengal Estate and

Bakau Estate.

Available waste monitoring, for example:

warehouse cards documentation - central BBF (TPS LB3) consisting of used oil, batteries scrap, box lamp, bulb

lamp, cloth rags, oil filter, former air cleaner, and former pesticide packaging. Record of documentation eg

incoming used oil as 400 liters on 20/08/2012 produced by generators 02 and 03.

Monitoring of empty bunch and effluent application year 2011 - 2012 in Bebunga Estate: for example effluent for

land aplication in December 2012 as many as 44,290 M 3 applied in 332.85 hectares.

Management Committee Meeting in Bakau Estate regarding explain application of empty bunch in December 2012

as many as 489 tons.

PT LMR also reported waste monitoring result (hazardous waste, empty bunch and efluent) to Environment Agency

Kotabaru District and provided the receipt. The final report was submitted is Environmental Monitoring Report, July until

September 2012 (third quarter) and has been accepted by Enviroment Agency Kotabaru dated November, 5th 2012.


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

available diesel fuel savings Data with use of shell and fiber in 2012 (January-September):

Total electrical energy used: 2,836,651 KWH

Average: 1.69 KWH/Liter

Total Shell and Fiber Consumption: 32,345,744 Kg

Average (fiber+shell): 0.08 KWH/Kg

Total solar savings: 1,525,563 Liter

Available diesel record for all operational activities in the estate and mill. For example:

Diesel usage data at Sungai Cengal Estate in 2012 (July 2011 until June 2012) as much as 16,988 liters to generator 45 Kva, 16,259 liters to generator 65 Kva, 60,770 liters to generator 75 Kva and 88,923 liters to generator 135 Kva.

diesel usage data for operational Bakau Estate every month. Operational activities consist use of light vehicles, trucks, heavy equipment and machinery. diesel fuel usage in December 2012 are 20,313 liters used by PT LMR and 6,127 liters used by the contractor.


5.5 Use of fire for waste disposal and for preparing land for replanting is avoided except in specific situations, as identified in the ASEAN guidelines or other regional best practice.

The company has Manual Agronomy Reference No.110/EST-ARM/08, where on Section 4 Preparation of Land clause 3.1 point (b) mentioned that clearance shall be guided to Plantation Department Decree No..KB.110/SK/DJ BUN/05.95 dated May 30th, 1995 regarding technical guidance without burning land clearing for plantation development as guide land preparation without burning, then the and Clearing activity should be based on the decree. The company has shown work Letter Agreement with PT. Catur Manunggal Jaya Abadi regarding replanting work conducted such as chopped, shredded and rumpuk and unburning. Based on field visits in Block C21 Division 2 Sungai Cengal Estate for replanting, no burning activitiy during replanting. In Memorandum Minamas Plantation - Jakarta Head office No..POD-UM-010/I/2009 dated January 22th, 2009 regarding the anticipated fires and drought in the estate, as a precaution, the company had made fire-prone area maps in each estate and map water sources. Also available fire monitoring report in the estate monthly, based on verification


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documents throughout year 2011 and 2012, was never fire occurred in PT Langgeng Muara Makmur area. The Company has also conducted training and fire simulation example:

Simulation of fire extinguishes on the January 16th, 2013 attended by woman, board gender committee and

mill (available documentation and records absent list)

Simulation of fire extinguishes on December 1st, 2012 attended by staff, firebrigade of pamukan and sungai

durian and trainer CV Sarana Prima Lestari.


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

Identification pollution and emissions sources in oil mills and estate, was documented in Inventory procedures & Emission GRK Estimating (No.Policy: 700/PSQM-GRK-01/12). Source of pollution and emissions from estate are: changes in land cover, fertilizer application, peat planting, the use of diesel generators and heavy equipment, TBS transport activity. While the emission sources at the mill are the use of diesel fuel for generator, boiler combustion activity, electricity, separation kernel, effluent disposal (POME) and transport CPO to bulking / refinery.

Monitoring quality of emissions from pollution source in Bebunga mill by testing from authorized institutions, in this case using the HIPERKES and safety agency in Banjarbaru South Kalimantan Air Testing Results at Workplace Report of Testing Air Workplace PT. LMR (Report HIPERKES 2012), dated April 4th, 2012

No Location NO2 (µg/Nm3)

SO2 (µg/Nm3)

CO (µg/Nm3)

TSP (µg/Nm3)

Temperature (0C)

1 In Mill 15,56 4,70 106,34 92,30 23,2

NAB 5.600 5.200 29.000 10.000

2 Front Mill 21,59 4,55 96,33 78,76 23,9

3 Settlement 15,70 4,75 63,87 1,66 23,7

NAB 200 900 20.000 230

Reference: PerGub KalSel No. 053 year of 2007 regarding Ambient Air Quality Standards and Raw Noise Level Emission Testing Results of Static Sources PT. LMR, April 4th, 2012.

No Station Stasiun NH3

(mg/m3) Cl2

(mg/m3) HCL (mg/m3)

HF (mg/m3)

NO2

(mg/m3) SO2

(mg/m3) Opas. (%)

Partikulat (mg/m3)

1 Chimney Genset 1

Cerobong Genset 1

0.01 0.01 0.01 0.02 0.56 0.33 13 8.84

2 Chimney Genset 2

Cerobong Genset 2

0.01 0.01 0.01 0.02 13.59 0.20 12 64.57

3 Chimney Genset 3

Cerobong Genset 3

0.01 0.01 0.01 0.02 24.61 0.77 13 3.92

NAB NAB 0.5 10 5 10 1000 800 35 350

4 Boiler No. chimney. 3

Cerobong Boiler No. 3

0.01 0.01 0.02 0.04 1.96 4.63 18 239.88

NAB NAB 1 5 5 8 800 600 30 300

Reference: PerGub KalSel No. 070 year 2008 about Standard Emission Sources danAmbang Limit Motor Vehicle Exhaust Emissions. All test parameters are below the threshold defined quality standard. Actions taken to reduce pollution and emissions include:

a. Installation and operation of Boiler Dust Collector is installed automatically during initial set up plant. b. Cleaning outside and inside instrument workplace every day, such as: Cleaning ash (Boiler) Cleaning Boiler

Pipe use automated tools system Sonic Shoot Blower that already installed on Boiler Pipe. While for the ash


ASSESSMENT REPORT


cleaning under the boiler performed once 2 days, Field observations: Schedule cleaning every Tuesday, Thursday, Saturday (early morning before activity).

c. Monitoring solar fuel usage for Genset, the average consumption in 2012 is 12,547 liters / month.

In POME management, available daily monitoring of Effluent Ponds report for weekly period with parameters such as: Leaks levees, dikes water level, pH waste pond, scum layer (scum), condition of pump applications, pump circulation Conditions , lighting, pool fence condition.

Monitoring daily waste analysis include:: pH, TA (Total Alkalinity), VFA (Volatile Fatty Acid), Normalitas, Volume H2SO4.


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

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

Social Impact Study 2010 has been followed by the Socio-Economic Assessment in main and KKPA Sungai Cengal estate. Record as follows

Socioeconomic Survey Questionnaire result PT.LMR Year 2011

Sample Questionnaire

Socioeconomic Survey Questionnaire result PT.LMR Year 2012 (main estate)

Socioeconomic Survey Questionnaire result PT.LMR Year 2012 (KKPA Sungai Cengal estate)

Reports of Social Impact Study PT.LMR Year 2012


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

Available SOP Communication and Consultation with community. The SOP describes flow process and provided

recorded of communication and consultation with the community. For example, communication and consulting

companies represented by the Manager and PSD Staff with the kladen community who represented by head village on

June 3rd, 2011 related communication and consultation of land claims in division IV Bebunga estate

There is evidence of socialization consultation procedures with the community conducted on May 9th, 2012 at House of

head of Lintang Jaya village. Socialization was attended by 18 people including head of Lintang Jaya Village, head of

Binturung Village, Binturung Community Leader, Lintang Jaya Community Leader and Staff PSD. However, based on

field visits in 3 Villages (Desa Lintang Jaya, Desa Balaimae and Desa Segendang) obtained information that community

has not got socialization about procedure above.

Verification January 23th, 2013

There is documented from socialization of public consultation procedure. The company had socialized it with community

at Tamiang village, keladen village, and Segendang village on January 22th, 2013.

Available stakeholder list containing stakeholder names and addresses for Village, Subdistrict, District and Province.

Registered stakeholders include community leader, goverment from village until province, agencies, and

nongovernmental organizations.

Available aspirations record (Register incoming Letter) and aspiration response (register Letter out) both in the estate

and Mill. For example, request for water supply and maintainance roads from Mulyoharjo village have been followed up

with aid water supply through the company’s tank car.

The clerk who responsible for consulting with the community is Administration head in accordance with SOP

Communication and Consultation. Special officer was appointed for Pamukan area is Sriyatno (PT PSA and PT LMR).


ASSESSMENT REPORT



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

Availbale SOP Request for Information has been revised (050/LMR-INF/C11), SOP Handling of Public Complaints (053/LMR-PKM/C11) and SOP Conflict Resolution has been revised (056/LMR-PKC/C12).

SOP Request information explained that all information requests from stakeholders will be recorded and responded, if it does not require the approval of the Head Department, period for submission of response up to 1 week, whereas if it requires the approval by Head Department maximum 1 (one ) months.

In SOP Public Complaints Handling described that the response / handling of complaints will be done no later than 2 weeks (14 days) from the date of the letter / complaint received by the operational units.

In SOP Conflict Resolution in revised on June 2011 described that the mechanism of conflict handling according to category (mild, moderate and severe) and the cessation of operation when is considered necessary as directed by the authorities and direction from management to workers, but the company has not been able to prove that SOP Conflict resolution revised on June 2011 can be accepted by the parties. The procedure has been socialized to community and the workers.


6.4 Any negotiations concerning compensation for loss of legal or customary rights are dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions.

Available SOP Identification and Standard Land Compensation (001/PSD-L&AS) dated June 3rd, 2011, includes information of compensation phase and calculation in accordance with standard had been issued by the District Government. There are also record of parties who receive compensation in the form of Compensation Payment Report, which contains: a). parties received compensation, b) notulen of compensation Meeting, c).Receipt of Compensation Acceptance, and d).Waiver Statement on Land. Record of the compensation agreement contain in Compensation Payment Report such as record of Compensation Meeting. Record of implementation compensation payment can be proven by compensation receipt between company that pay compensation and compensation receiver.


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

The Company applied the Minimum Salary in accordance with Memorandum GM HRM No. 027/HRM-I3/I/2012 dated January 11th, 2012, concerning daily salary and monthly salary structure for Plantation in 2012 at South Kalimantan that sets employee’s minimum salary based on UMSP South Kalimantan is Rp. 1,250,000 / month in accordance with Decree of South Kalimantan Governor No.188.44/0630/KUM/2012 regarding Determination of Sectoral Minimum Salary in South Kalimantan Province year 2012. Based on document review and interview with harvester and maintenance personnel, obtained information in 2012 they received salary of Rp.1,250,000, - plus allowance 15 kg of rice every month. For example, behalf name Pandi (harvester) based on salary slip, he received Rp 1,875,950, which consists basic salary Rp 1,250,000 and premi Rp 625,950, - The company has company regulation period 2010-2012 was approved by the Head of manpower and Transmigration Agency of Kotabaru district by decree 560.568/KEP-908/PP/HI/X/Disosnakertrans/2010 dated October 12th, 2010, and collective labour agreement (PKB) period 2012-2014 has been established by the manpower and Transmigration Agency and approved by Manpower and Transmigration Ministry on June 7th, 2012. Facilities was provided for employee documented in Inventory document of Housing, Buildings, Facilities and Infrastructure containing Mess group matrix, Housing and type (public Mess, Pamukan Resort, management Mess, Club House, GM House, Manager House, Askep House, Assistant House / Section Head / KTU, House G1, G2 House, G3 House); General Building Type (GM Office, Large Office, Division Office, Warehouse, Workshop, Meeting House, School kindergarten, elementary, junior high, vocational, junior hostel, Polyclinic, library, Laboratory, Center Employees, Mosque, Infants Care, Church, ration shops, post guard, gyms, swimming pools, football pitches, badminton courts,


ASSESSMENT REPORT


tennis volley tennis courts. Based on field visits by the state auditor's assessment of the worth and sanitation facilities maintained. In the agreement / contract with the contractor, requires the contractor comply with manpower regulation, for example in

SPK contract with PT. Catur Manunggal Jaya Abadi No. SPK 008/Replanting/LMR-SCE/VI/2012 about replanting activity, in Article 12 about Work and Environment Security, Safety, Health and Environment, In Clause 7 explained that the second party (contractor) shall comply, ensure and carrying out all the rules and unlimited Law , Government Regulations, first party‘s Regulation and other especially regarding health, safety and work environment in carrying out work with emphasis on work Safety and Health.


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

Policy of the right to freedom of association are available in collective labour agreement Article 8, Clause 1, regarding Entrepreneur Recognition to worker Union which states that entrepreneur recognize that worker Union is a legitimate company’s employee in representing and acting for and on behalf of all workers who are members and have relationship with Entrepreneur as equal partners. In Chapter II, Article 6, paragraph 2 about obligations of Entrepreneur Against Unions, which states give an opportunity to board and / or members of worker unions to carry out activities were agreed by both parties and / or provided in law. The company and employee have met several times, as follows:

The meeting between the company with the employee on November 16th, 2012, discussion about duties and responsibilities of worker unions, cutting PPH, generator problem in pondok II (available record of attendance list, documentation and notulen)

The meeting between Social, Manpower and Transmigration Agency of Kotabaru District, the Company, the Board Federation and worker union on June 16th, 2012 about founding manager and member of Minamas Group worker union in the area of Sungai Pamukan (available record of attendance list, documentation of activities and notulen.)


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

The company has a policy regarding age requirement for worker in Memorandum Head Office- Jakarta (No. POD-UM-052/III/2010) which state Prohibition in using under age labor appropriate to Labor Laws are no worker under age (18 years). The policy also contained in the Labor Cooperation Contract in Article 16 regarding workers acceptance on point 1.2.2, which states that the general requirement must be fulfilled in is minimum 18 years old at the time of admission. Based on observations dand documents review, did not find employees who under age (18 years). During an interview with the worker obtained information that they (the workers) know that one of work requirement is 18 years


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

Available SOP Sustainable Plantation Management Guideline issued by Minamas Plantation Indonesia (No.Policy: 724/TQEM-SPMS/09) page 13, dated August 27th, 2010, include company's policy regarding equal opportunity and treatment in job opportunity contained in point 1 which states that: All Staff / Employees must be treated in fair and equitable in matters relating to the hiring, advancement, conditions and job description, regardless of race, degree, ethnicity, gender, skin color, imperfection (defect), sexual orientation, membership organization, political view, religion and age . There are also documents the Labor Cooperation Contract, in Article 16 outlined regarding recruitment:

1. Selection of candidate employee: conducted according to appropriate qualification for required position.

2. General Requirements: An Indonesian citizen, 18 Years Minimum Age or married, healthy body and soul, meet


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the criteria or requirements of the position required, does not engage in illegal company, not in criminal

proceedings, not related to the employment relationship with the other party , would be placed at wherever

location.

3. Probation: 3 months, conducted performance appraisals prospective employee during the trial period.

PT LMR also has mechanism for employees career development through an performance assessment. Employees who are considered have a good track record, will be proposed to participate in career development training to occupy higher position and have rights according to standard position. Available List of PT. LMR Employee in December 2012, shows the background of employees based on race, religion and origin. Based on information from management, the mechanism of worker recruitment is to give equal opportunity to all parties in accordance with requirement set by the company with reference to the labor laws in Indonesia.


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

The company has policy regarding issue of gender (Gender Policy) that signed by the Executive Vice President (April 2008) which aims to ensure the rights, preventing sexual harassment and violence against women, workers, and communities. The company's policy about protection of reproductive rights contained in Work agreement Part 33 and 34, regarding policy about pregnant rest for 1,5 months before birth and 1,5 months after birth and still get full salary and has right to break for 1.5 months after having miscarriage according to medical certificate or midwife. The company's efforts to prevent sexual harassment with form gender committees. At Bakau Estate was established gender committee with leader Siti Nikmah and at Sungai Cengal Estate with leader of the Bint Naila. The company has socialization about gender committees (January 15th, 2013) and available committee gender program. The Company has provided evidence of reproductive rights protection policy implementation such as, Pregnancy Notification Letter available : Ms. Rosiati (spray team) age 28 years of Division II Sungai Cengal Estate and she recommended not to work that relate to chemicals and maternity leave recommendation letter for Ms.Rosiati to start off maternity leave on September 19, 2012 to December 19, 2012. In the salary slip stated that the salaries fully paid for September, October, November and December 2012. procedures of complaint for gender issues is available in SOP Gender Policy Implementation Guideline Minamas Plantation (No.Policy 700/PD-KG/10) describes such reporting, victims fill out a form of complaint, Gender committee Member received a complaint thus deliver to committee leader and gender unit manager. Gender committee leader will form internal investigation team, the investigation should not exceed 2 working days after receipt the complainant from the victim, investigation report forwarded to the local manager and describes the following topics: detailed event data, background and chronology, fact-finding, if the evidence quite enough then the unit manager will take disciplinary action to the offender.


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

PT. LMR did not have outgrower schemes, because the sourced of raw materials from the core estate and cooperative credit scheme (KKPA) Sungai Cengal.The KKPA is not under PT. LMR management, so information of TBS price monthly was submitted by the Plantation Agency to KKPA Sungai Cengal directly.

contract between PT. LMR and Koperasi Bina Swadaya Karya (KKPA Sungai Cengal) is based on supply TBS to palm oil mill Bebunga. In the agreement (No. 001/PKL-LMR/X/2008, dated August 11th, 2008) contained provisions for the rights and responsibilities both parties, as follows:

During TBM credit has not paid and 3. TM loans is paid. B) First Party Right: Accept a part of production selling from Second Party every date of 3 in next months after cut with installments payments and interest.

There’s no payments becouse the supply from KKPA Sungai Cengal is very small (<1%) and classified as 4 years age cropping (planting year 2008).


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


ASSESSMENT REPORT


Available record contribution to local development, as follows: 1. Tax Payment

Payment Receipt of Land and Building Tax Year 2012 PT.LMR for 2 tax object in East Kalimantan:

- In the Desa Lomu for tax object covering 8,287,741 M2 Total Tax Rp. 118,514,696 paid by BRI Branch Tanah Grogot.

- In Desa Segendang In agreement for object covering Rp 11,000,000. Total Tax Rp. 55,000,000 paid by BRI Branch Tanah Grogot

Payment receipt of Land and Building Tax Year 2012 PT.LMR for 1 tax object in South Kalimantan, Desa Balamea and Desa Binturung Lama, area 160,601,615 M2 Total Tax Rp. 1.895.059.192 paid by BRI Branch Tanah Grogot.

2. Realization of CSR Program in Bakau Estate, Period 2011/2012 (Up to December 2012), Total Rp. 141,624,910 Available some samples of CD / CSR programs which appropriate with local needs, as follows: 1. Junior High School building (SMP) & Vocational School (SMK) in Bebunga Estate. 2. Improvement access of roads, from and to surrounding villages. Available CD / CSR program generated from the Council of Village Development Plan: 1. Bakau Estate : rehabilitation of educational facilities in the Desa Pamukan 2. Bebunga Estate : Repair facility of worship (Churches & Mosques) 3. Sungai Cengal Estate: Madrasah Development


PRINCIPLE #7 Responsible development of new plantings

7.1 A comprehensive and participatory independent social and environmental assessment is undertaken prior to establishing new plantings or operations, or expanding existing ones, and the results incorporated into planning, management and operations.

PT LMR has reviewed environmental and social aspect of replanting activitiy in Bakau Estate (BKE) and Sungai Cengal

Estate (SCE) conducted by third party (Aksenta). There is a map of replanting area in BKE and SCE that explained

block and wide replanting area. Based on the review, replanting area for Cengal Estate of 180.83 Ha in the Field C021-

C022 and Bakau Estate area of 109.91 Ha in the Field A046.

Available replanting influence to physical environment aspects, biodiversity aspects, social aspects and

recommendations that need to be done by PT LMR related effect from the aspects.


7.2 Soil surveys and topographic information are used for site planning in the establishment of new plantings, and the results are incorporated into plans and operations.

Available the result of land survey for new development areas (covering 1,162 Ha), but there is 594 Ha (Div IV BBE)

have not done survey, because there has agreement bentween local community to unmanaged during resolution

process.

Available land conformity assessments conducted by MRC in replanting areas for Cengal Estate area of 180.83 Ha and

109.91 Ha in Bakau Estate area. The results are follows:

Sungai Cengal Estate: 175 Ha (96,78%) with conformity S3 (suitable to marginally); 3.99 Ha (2,20%) with actual

conformity N1 (currently unsuitable) and 1.84 Ha (1,02 %) with conformity N2 (permanent Unsuitable).The area

with land conformity S3 and N1, if give maximum input will potentially to be S2 (quite appropriate), while for

conformity N2 is not recommended for replanting.

Bakau Estate: 109.92 Ha (100%) with land conformity S3 (suitable to marginally), but if all area give the maximal

input will potentially to be S2 (quite appropriate).


ASSESSMENT REPORT


Based on field visits at Block H09 and H08, C022 Field, Division II, in SCE, there are unreplanting areas covering 1.84 Ha due to MRC recommendation because the area based on land suitability assessment is N2 (permanent Unsuitable). Based on field visits in the Field C022, Division II, SCE area that was planting by cover crop (mucana sp) aims to land protection.


7.3 New plantings since November 2005, have not replaced primary forest or any area required to maintain or enhance one or more High Conservation Values.

PT LMR has assessed replanting activities related to environmental and social in Bakau Estate (BKE) and Sungai

Cengal Estate (SCE) conducted by third party (Aksenta).

There is a map of replanting area in BKE and SCE , it described areas that can and cannot replanting. All BKE area can

replanting because there’s no HCV, while SCE have 1.82 area with mountainous topography and 0.75H area HCV

(Sumur Tujuh) were not replanting.


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

Available replanting map that show replnting areas that can and cannot replanting. There are 178.99 ha (98.98%) can

replanting in SCE and 109.91 ha (100%) can replanting in BKE.

Based on field visits in Blocks H09 and H08, C022 Field, Division II, there are unreplanting area cover 1.84 ha. It is

according MRC recommendation, because the area has steep mountainous topography and clasiified N2 (Permanent

Unsuitable). Based on field visits in replanted area (C022 Field, Division II, Sungia Cengal Estate) has been planted by

cover crop (Mucuna sp) as land protection.


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

PT LMR has assessed replanting activities related to environmental and social in Bakau Estate (BKE) and Cengal

Estate River (SCE) conducted by third party (Aksenta). This study contains positive and negative impacts for

environment and social costs from replanting activities.

Based on document review and field visits in SCE and BKE, replanting areas included in Land use (HGU) of PT.LMR, so

not done any more the socialization of land clearing and compensation agreement.


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

Based on document review and field visits in SCE and BKE, replanting areas included in Land use (HGU) of PT.LMR


7.7 Use of fire in the preparation of new plantings is avoided other than in specific situations, as identified in the ASEAN guidelines or other regional best practice.

Available Work Agreement No. 008 / replanting / LMR-SCE / VI / 2012 dated july 29th, 2012 which describe cooperation

agreement between PT Langgeng Muaramakmur and PT Catur Manunggal Jaya Abadi related replanting that include:

Uprooted and chopped / minced

Digging holes and closed back ex hump and land

New road making

Tillage

mechanically planting hole making


ASSESSMENT REPORT


Terracing to the fort every interval of 20 meters

Make ridges / cambering the lower acreage

Based on field visits in Cengal Estate Division II Field C021, not found burning scars.

The company has Memorandum Minamas Plantation document - Head office Jakarta No. POD-UM-010/I/2009 dated January 22th, 2009 regarding anticipated fires and drought in estate. As a precaution, the company has made a map of fires prone area in each estate and water sources. Also available monthly reports of fire in estate, based on document review, during 2011 and 2012, was never fire in PT Langgeng Makmur area. The Company also has conducted training and fire simulation, for example:

fire Simulation on January 16th, 2013 attended by women’s staff, board of gender committees and mill

(available documentation and list absent records).

fire Simulation on December 1st, 2012 attended by staff, firemen, and the area Pamukan durian and sungai

durian by trainer from CV Sarana Prima Lestari.

Based on field visits in Bakau Estate, available facilities and infrastructure such as land fire fighting hose, pump

machine (robin), PPE and others.


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

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

The Company has evaluated the result of reservoir water test that exceeds the quality standards and implemented

Water Treatment Plan.

Management PT. LMR has follow up Social Impact study in 2010 by Socio-Economic Aspects Assessment in 2012. The results has been integrated with Council of Regional Development Plan. The result has been implemented in CD / CSR program in 2012. It is available Internal Report by Team RSPO PT LMR to follow-up non conformity RSPO Stage 2



ASSESSMENT REPORT


3.2. Summary of Assessment Report of Supply Chain

Clause (Module D) CPO Mills - Segregation Requirements

1 Documented Procedures

1.1

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

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

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

PT Langgeng Muaramakmur has procedure for Identification and Traceability Product at Minamas Plantation Palm Oil Mill (No. Policy: RSPO/65/SCPP/LMR, Rev. 01, dated 14th January 2013). The document contains: 1) Objectives; 2) Scope; 3) Definition; 4) General Information; 5) Responsible Person; 6) Procedure; 7) Special Condition; 8) Administrative Tools; 9) Annexes; 10) Declaration. This procedure used for handling discrepancies if any documents of raw material received was invalid and also for product traceability.

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

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


1.2

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

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

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

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

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


2 Purchasing and goods in

2.1

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

CAR No. 2011.53: In practice, if there is a document that is not appropriate for the FFB received, LMR will confirm to the driver by verifying to the estate (fruit receipt form SPB maker). But the company has not been able to demonstrate a mechanism or procedure for handling discrepancies of document of raw materials received if it is invalid.


ASSESSMENT REPORT


January 18th, 2013 Bebunga POM has separated of all receiving material document (FFB and Loss Fruit) between certified and non-certified by stamp/chop “RSPO certified” and “Non-certified”. Receiving documents following: FFB Delivery Slip (SPB), Weight Bridge Slip (Kartu Timbang) and FFB Quality Inspection Report (Laporan Grading).

Sample document of receiving FFB certified and non-certified, dated 16th January 2013.

FFB Delivery Document (SPB) No. Serial: 419.12.416.330, No. Vehicle: KT 8525 AK, Estate: Sungai Cengal; Harvesting Block: C51; Amount of Bunches: 550 FFB, Division: IV, RSPO certified mark/chop is available on document.

Weight Bridge Slip (No. Ticket: 126651) and FFB Quality Inspection Report

FFB Delivery Document (SPB) No. Serial: 484.13.000.037, No. Vehicle: DA 9944 LA, Estate: Sungai Cengal Smallholders Scheme; Harvesting Block: G002; Amount of Bunches: 1,233 FFB, Division: I KKPA ASC, Non-certified mark/chop is available on document.

Weight Bridge Slip (No. Ticket: 126661) and FFB Quality Inspection Report (dated January 16th, 2013). Collection point of FFB certified and non-certified are located separately. CAR No. 2011.53 can be CLOSED


2.2

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

This clause was stated in the procedure for Identification and Traceability of Product at Minamas Plantation Palm Oil Mill (No. Policy: RSPO/65/SCPP/LMR, Rev. 01, dated 14th January 2013). 7.2 If the monthly production of FFB certified or non-certified processed is over projection, POM should be inform to the Certification Body immediately. CPO and Kernel product must be recorded in the report, then it will be known whether tonnage is excess of budget or not.


3 Record keeping

3.1

The facility shall maintain accurate, complete, up-to-date and accessible records and reports covering all aspects of these requirements.

Under the procedure for Identification and Traceability of Product at Minamas Plantation Palm Oil Mill (No. Policy: RSPO/65/SCPP/LMR, Rev. 01, dated 14th January 2013).

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

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


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

CAR No. 2011.55: The retention time of records related to traceable CPO production (supply chain) has not been defined at 5 years, examples of daily production reports, monthly production statistics, the recapitulation of grading in Bebunga POM.

January 18th, 2013

Under the procedure for Identification and Traceability of Product at Minamas Plantation Palm Oil Mill (No. Policy: RSPO/65/SCPP/LMR, Rev. 01, dated 14th January 2013).


ASSESSMENT REPORT


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

CAR No. 2011.55 can be CLOSED


3.3 The facility shall record and balance all receipts of RSPO certified FFB and deliveries of RSPO certified CPO, PKO and palm kernel meal on a three-monthly basis.

CAR No. 2011.56: There is data of information or record of information of FFB received and CPO produced per month and sold and the remaining stock, but it is still not in the form of a balance recapitulation sheet per 3 months, and describing the stock of the scope of the Mass Balance. The company must record and make a balance recapitulation sheet of certified palm oil received and sent per 3 months, and the balance sheet that describes the stock of the scope of the Mass Balance. January 18th, 2013 Bebunga POM has the records and balancing sheet of FFB’s RSPO certified and delivery of certified CPO/Kernel every month (Monthly Summary of Sustainable FFB, CPO & Kernel March - December 2012) and three (3) monthly period (quarterly). All these document specify of material category as Sustainable Products with Segregated. CAR No. 2011.56 can be CLOSED


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

CAR No. 6: The company shall specify and mention of supply chain model in relevant documents.

February 13th, 2013

Since PT Langgeng Muaramakmur has certified on March 16th, 2012, there is no request/selling of product with RSPO certified claimed. Nonetheless the company has a relevant document for demonstrable (such as: Sales Contract), if in the case of later on they have request for claim certified product, according to this requirement clause.

Sample document:

Sales Contract No. 00233/LMR/KTR-MKS/LOK/XII/2012, dated December 13th, 2012. The code of RSPO Certified Segregation is available on the document. CAR No. 6 can be CLOSED


4 Sales and goods out

4.1

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

(a) The name and address of the buyer

(b) The date on which the invoice was issued

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

(d) The quantity of the product delivered

(e) Reference to related transport documentation

CAR No. 2011.54: There is an invoice issued by POM (the logistic forwarded to Marketing) mentioning the name and address of purchaser, date of invoice, the amount of products shipped, product description, but the company has not set up to provide information of material category according to the scope. Certified palm oil to be delivered and should provide information of material category ("Mass Balance") in the Minutes and Invoice of CPO.


ASSESSMENT REPORT


February 14th, 2013

Since PT Langgeng Muaramakmur has certified on March 16th, 2012, there is no request/selling of product with RSPO certified claimed. Nonetheless the company has a relevant document for demonstrable (such as: Sales Contract), if in the case of later on they have request for claim certified product, according to this requirement clause.

Sample document:

Sales Contract No. 00233/LMR/KTR-MKS/LOK/XII/2012, dated December 13th, 2012. The code of RSPO Certified Segregation is available on the document.

The document contains of:

a. Name and address of buyer: PT. BERKAH EMAS SUMBER TERANG, Jl. Coaster No. 9, Kelurahan Tanjung Emas, Kecamatan Semarang Utara, Semarang 50174.

b. Date of invoice issued: December 13th, 2012.

c. Product: CPO (Crued Palm Oil In Bulk); Quality: FFA (AS Palmitic): 8.00% max, Moisture and Impurities: 0.50% max; RSPO Certified Segregation.

d. Quantity: 1,500,000 Kg.

e. Annexes: Delivery Order (DO) No. 00260/00233/12/12/L-LMR-MKS. Invoice No. 00421/LMR/XII/2012.

NCR 2011.54 can be CLOSED


5 Processing

5.1

The facility shall assure and verify through clear procedures and record keeping that the RSPO certified palm oil is kept segregated from non certified material including during transport and storage and be able to demonstrate that is has taken all reasonable measures to ensure that contamination is avoided. The objective is for 100 % segregated material to be reached. The systems should guarantee the minimum standard of 95 % segregated physical material9; up to 5 % contamination is allowed.

Procedure: Identification and Traceability of Product at Minamas Plantation Palm Oil Mill (No. Policy: RSPO/65/SCPP/LMR, Rev. 01, dated 14th January 2013). Declaration-6 stated:

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

Production data in the Monthly Summary of Sustainable FFB, CPO and Kernel (March 17th 2012 until February 2013), shows that Bebunga POM receiving, processing and produced of 98% certified and 2% non-certified.


5.2

The facility shall provide documented proof that the RSPO certified palm oil can be traced back to only certified segregated material.

Production data in the Monthly Summary of Sustainable FFB, CPO and Kernel (March 17th 2012 until February 2013), shows that Bebunga POM receiving, processing and produced of 98% certified and 2% non-certified.

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


5.3

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


ASSESSMENT REPORT


The crush operator conforms to these requirements for segregation

The crush is covered through a signed and enforceable agreement

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


6 Training

6.1

The facility shall provide the training for all staff as required to implement the requirements of the Supply Chain Certification Systems

CAR No. 2011.57: The company has implemented the SCCS implementation supporting system, in the form of Sime Weight System, SPB and related procedures, but a specific SCCS training has not been conducted, although the relevant training plan has been prepared to be held on the middle of June 2011.

March 21st, 2013 SCC training has been conducted on March 15th, 2013 at POM Office. Training material: Matrix of SCCS training Module D – CPO Mill Segregation, attended by 14 people from Mill and Estates. Minutes of training event is available and well recorded by the organization. CAR No. 2011.57 can be CLOSED


7 Claims

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

January 18th, 2013

PT. Langgeng Muaramakmur have SOP Identification and Traceability Product at Minamas Plantation Palm Oil Mill (No. Policy: RSPO/65/SCPP/LMR, Rev. 01, dated 14th January 2013). Declaration – 7: CLAIM

All products (CPO and PK) that RSPO certified claim isrefer to RSPO Guideline for Communications and Claims.

Since PT Langgeng Muaramakmur has certified on March 16th, 2012, there is no request/selling of product with RSPO certified claimed.



ASSESSMENT REPORT


3.3. Conformity Checklist of Certificate and Logo Use

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

X or√

S-1 Not Applicable;

The Company does not use the logo on-product and off-product in the scope of PT Langeng

Muara Makmur

Status: Not Applicable

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

X or√

S-1 Not Applicable;


Muara Makmur


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

X or√

S-1 Not Applicable;


Muara Makmur


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

X or√

S-1 Not Applicable;


Muara Makmur



ASSESSMENT REPORT


3.4. Summary of RSPO Partial Certification.

Total companies visited (0.8 √Y) Where Y is the total of one holding company The company name : Mustika POM and PT Sajang Heulang full manage scheme smallholders (KKPA)

2.1

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

X or√

Pustika POM and PT Sajang Heulang full manage scheme smallholders are compliance with applicable laws and regulations.

√

2.2

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

X or√

PT Sajang Heulang scheme smallholders has demonstrated land use and not legitimately contested by local communities.

√

6.3

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

X or√

PT Sajang Heulang scheme smallholders has documented system for dealing with complaints and grievances, which is implemented and accepted by all parties

√

6.4

Any negotiations concerning compensation for loss of legal or customary rights are dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions.

X or√

PT Sajang Heulang scheme smallholders has SOP of Land Compensation Standard and Identification No. 001/PSDS-L&AS, describe Land identification, settlement patterns, Consultative Process Claims, Payment and Reporting Procedures.

√

7.3

New plantings since November 2005, have not replaced primary forest or any area required to maintain or enhance one or more High Conservation Values.

X or√

PT Sajang Heulang scheme smallholders have not replaced primary forest or any area required to maintain or enhance one or more High Conservation Values

√

7.5

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

X or√

No land compensation process due the entire smallholders’ scheme plantation land is the property of their respective member smallholders (land tenure is a Certificate of Ownership). PT Sajang Heulang operating the operational activity (full manage scheme smallholders)

√

7.6

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

X or√

No land compensation process due the entire smallholders’ scheme plantation land is the property of their respective member smallholders (land tenure is a Certificate of Ownership). PT Sajang Heulang operating the operational activity (full manage scheme smallholders)

√


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 ST2 Assessment

During the ST-2 assessment, there were 11 (eleven) Nonconformities were assigned against Minor Compliance Indicators, 16 (sixteen) opportunities for improvement were identified. Further explanation of the non-conformities raised and corrective actions taken by the company are provided in this section. The company prepared a corrective action that was reviewed and accepted by MUTU and corrective actions taken to close all non-conformities shall be verified during next assessment.

CAR No

Ref Std

Finding Area Grade Time

Limits Corrective Action Observation Status

Closing Date

2011.04 1.2.1 Types of public information – There is no documented procedure or policy of classification of information that can be published, or excluded (treated confidential) which refers to the prevailing laws and regulations (eg: Law no. 14 of 2008 on Public Information Transparency).

Estate & POM

NC To be CFA

Prior to Stage 2

LMR should provide information management procedures that explicitly classify the types of information/data that can be published and those that should be kept confidential by referring to the Law no. 14 of 2008.

There is revised version of SOP for Request for Information (050/LMR-INF/C11) which specifies/classifies documents that may be notified to the stakeholders, but dod not yet specify / classify documents that are not allowed to be given to the stakeholders. January 17, 2013

Available SOP Request for Information has been revised (050/LMR-INF/C11) \ and has been listed / grouped the list of documents that should and should not be given to stakeholders.

Closed January 18 2013

2011.22 4.7.10 Record of accidents – The company is encouraged to more accurately define 'Occupational Accident Causes' (in the Accident Monitoring form) so as appropriate corrective actions can be taken and the same event can be avoided. For example: an accident taking

POM CFA Prior to Stage 2

Company must determine the causes of accident and corrective actions in order to avoid recurring of the accident in the record.

Company has record of occupational accidents and reported it in the montly Safety Officer report. For POM, no occupational accident takes place during 2011. Likewise, the occupational incidences in estates are also recorded, for example: In Bakau Estates during 2011 (till April



ASSESSMENT REPORT


CAR No

Ref Std



Closing Date

place at the POM in January 2011, it is stated that the cause of the accident is "contact with the surface of hard object".

2011), occupational accidents are recorded ranging from abrasion up stab wound totalling 14 incidents and lost work time incident of 16 days. These events are analyzed, but root of causes and corrective actions have not been set (safety officer monthly report) January 17, 2013 The Company has recorded every work accident event in the Accident Investigation Report Form, and the root cause and corrective action. All data related accidents are examined and reported every month in the form of Safety Officer report.

2011.23 4.8.2 Record of training – The company is encouraged to provide training record that has been followed by all employees, including those followed by the foreman.

Estate Minor Prior to Stage 2

Company must provide record of trainings that have been attended by its workers (certified or not certified)

Company has prepared records of training for structural level, but focusing on trainings with certification or trainings without certification are not recorded. For example, HCV training in the name of Hendri Nardes (Estate’s Senior Assistant).

January 17, 2013

There is a record of training that has been participated by all employees, including the type of training that has been participated and has been certified or not.


2011.25 5.1.2 6.1.4

Records of environmental management report - LMR has

Estate dan

CFA Prior to Stage 2

LMR should review the policy of preparation and submission

Company has sent its RKL / RPL Report according to the internal PSD



ASSESSMENT REPORT


CAR No

Ref Std



Closing Date

presented RKL / RPL Report covering POM and estate areas (South Kalimantan), but has not been consistently communicated to the relevant agency. For example: Report II period 2010 whose documented delivery to relevant agency is not available.

POM of RKL / RPL report that can be delivered to the relevant agency more timely.

policy to the relevant agency, but it is still in formal submission process. January 17, 2013

Provided Report of RKL / RPL Implementation Period II in 2012 cover all aspects recommended in the approved Environmental Management including replanting activities.

2011.26 5.1.2 6.1.3

Revised environmental management document - RKL / RPL Report has not been fully in accordance with EIA (Environmental Impact Analysis) results.

Estate & POM


RKL / RPL records should be adjusted with the EIA results

Company has not fully followed up the adjustment of RKL / RPL document with EIA outputs. January 17, 2013

PT. LMR has conducted environmental management and monitoring activity in accordance with the passed RKL / RPL document. All aspects are monitored and managed in accordance with the EIA document.. All aspects are monitored and managed in accordance with the AMDAL Document.


2011.29 5.2.5 Trained personnel dealing with species protection – The company has appointed a dedicated supervisory officer of HCVA (Buffer Zone) for each estate, but there is no evidence of training for such personnel.


LMR must show documented evidence of HCV management training attended by its dedicated officer dealing with HCV management.

Company was unable to demonstrate that the dedicated officer responsible for HCV management is a well-trained person, although the Company has planned to organize a HCV training in cooperation with BKSDA.



ASSESSMENT REPORT


CAR No

Ref Std



Closing Date

January 17, 2013

Has provided evidence of record that person in charge for the management of NKT have been trained.

2011.33

5.3.4

Waste monitoring records - Monitoring of hazardous waste, as recorded on the Card Warehouse in the POM, yet includes all the waste referred to in the SOP No. 700/IK-TQEMESH/10 regarding Quality Standard of Hazardous Waste & Non-hazardous Waste and Government Regulation No. 18/1999. In conjunction with Government Regulation No. 85/1999. For example: Record of Hazardous Waste in the POM just specifies used oil and batteries.

CFA POM Prior to Stage 2

Company shall review its documented policy of hazardous waste monitoring by including all types of hazardous waste.

Monitoring of waste is carried out in the POM with complete records, but an analysis should be conducted in order to ensure that the organization will reduce the volume of waste and more efficient use of materials January 17, 2013

Provided waste monitoring document, such as the Central Warehouse Card Documentation (TPS LB3) in PALM OIL MILL Bebunga including used oil, filters, light scrap, cloth rags, packaging and other pesticides.


2011.35 6.1.1

Social impact analysis - social impact assessment has been carried out in January 2010 covering both positive and negative impacts of the operation of the company. However, the company is encouraged to present quantitative data, for example, data related to contributions made by company to improve household incomes of local people.

Estate & POM


Company must expolicitly specify the positive and negative impacts arising from its plantation operations in the Social Impact Analysis document.

The company’s social impact analysis report has not explicitly presented the positive and negative impacts arising from the estate operations.

January 17, 2013

Provided report of Proceedings Social Impact Study Result that has presented data about positive and negative effects on society.


2011.36

6.1.2

Public participation in environmental management -

Estate & POM


Company must invite the local people to actively involve in

Community has not actyively been involved in the management and



ASSESSMENT REPORT


CAR No

Ref Std



Closing Date

The social impact assessment results indicate the existence of community involvement as information giver. The company is encouraged that in the next monitoring process, the community is actively involved in the management and monitoring of social impacts.

the periodical management and monitoring of social impacts

periodic monitoring of social impacts. January 17, 2013

Has provided evidence of record for social impact study in 2011 and 2012 involving the public in filling out the questionnaire, and the integration between the Regional Development Plan council with Social Impact Assessment 2012 has been implemented in the form of CD / CSR program in 2012.

2011.38

7.2.1, 7.2.2;

7.4

Soil survey - Record of soil suitability for development of HGU land is unavailable.


Company must provide record of soil suitability survey for the developed HGU areas.

There are still 594 hectares of land that has not been surveyed. But the company has a land survey program as indicated in a request letter addressed to the MRC for semi-detailed survey conducted in the Division IV of BBE. January 17, 2013

The company has condected surveys of land in the area Bebunga Estate area of 1.162 Ha, but still there are area 594 Ha of land survey has not been done since the area is an area that is included in the deal "status quo" by agreement between PT. LMR with the Segendang village residents. Condition of the area is not a new opening or replanting.


ASSESSMENT REPORT


CAR No

Ref Std



Closing Date

2011.41

2.2.5 6.3.1

Company was unable to present a prove that the Revised SOP for Conflict Resolution prepared in June 2011 is acceptable to the relevant parties

Minor Prior to S1

Company must prove that the Revised SOP for Conflict Resolution drawn up in June 2011 can be accepted by the parties

January 17, 2013

There is record evidence of socialization SOP Conflict Resolution to employees and communities surrounding the plantation.


2011.42 4.4.2

Company was unable to present records of water treatment activities in the estate including water quality monitoring records. But the Company has prepared a monitoring plan in the second semester of 2011.

Estate Minor Prior to S1

Company must be able to demonstrate documented record of POM’s water management activities including records of the water quality monitoring activities

January 17, 2013

Company has conducted testing for river water periodically at 3 locations (S.Tamiang, S. Bebunga & S. Lintang) and conducted testing at 7 locations reservoir (1 reservoir at Sungai Cengal, and 3 reservoirs at Bakau Estate).


2011.43

4.6.5 Chemicals categorized as Type 1A or 1B WHO, among others, Pesticide with active ingredients of Delthametrin (Decis) and active ingredient Brodifakum (Klerat and Ratgon) are found but not applied by the company.

Estate CFA Prior to S1

To ensure that the chemicals categorized as 1 A and 1 B WHO are not used, the company is recommended to have a commitment to reduce or eliminate their use.

January 17, 2013

A review of document and field visits found no pesticide Group 1 A & 1 B WHO used by company.


2011.44

4.7.8 Inspection of First Aid kits has not been fully carried out for several activities in the garden or in the POM. For example: FIRST AID kit available in FFB harvesting activities, all first aid kits in POM area.

Mill and Estate

CFA Prior to S1

Company should complete its inspection of FIRST AID kits at the work site, eg: FIRST AID box in FFB harvesting activities and all first aid boxes in POM area.

January 18, 2013

The result of field observation in S. Cengal Estate, Bakau Estate & PALM OIL MILL Bebunga, all K3 equipment (PPE, fire extinguisher & Hidrant to PALM OIL MILL) monitored regularly every month in good condition. As for the completeness of the equipment box P3K monitored every week.


2011.45 4.8.1 Training for staff and contractors Estate CFA Prior to Company is recommended to January 17, 2013 Closed January 18


ASSESSMENT REPORT


CAR No

Ref Std



Closing Date

7.1.3 has been identified, including RSPO training program attended by the company in both estate and POM. But the audit team did not find the documented identification of training programs for KKPA or plasma farmers in which the KKPA and the Company (LMR) have interest in the activities undertaken by the farmers.

S1 identify and create training programs for the KKPA or plasma.

Identification Matrix Training has been provided to the farmers KKPA or Plasma, among others; harvesting, general K3, ISPO, RSPO, Integrated Pest Disease.

2013

2011.46

5.2.2 5.2.3

Program created by the Company have not fully refer to the HCV management document. For example effort to enrich rare and protected flora species, such as Ulin, Gaharu.

Office and Estate

CFA Prior to S1

Company is recommended to review the management program in accordance with the directives of HCV management set forth in the HCV documents.

January 17, 2013

There is record evidence that the company has conducted action enrichment program as recommended by the Report of Identification of NKT.


2011.47

6.1.2 The company’s social impact analysis document has not explicitly specified more relevant quantitative data.

Office and Estate

CFA Prior to S1

The company managmenet unit is recommended to establish a plan for Social Impact Analysis for the next period which presents more relevant quantitative data.

January 17, 2013

Has provided further evidence of the results of the Study of Social Impact Assessment of 2010 in the form of Social Aspects of Economic PT. Langgeng Muaramakmur. In 2012 Social Impact Assessment has been conducted and the results have been integrated well with the results of the Council of the Regional Development Plan. The result of the integration between the Council of the Regional Development Plan for the Social Impact Assessment 2012 program has been implemented in the form of CD / CSR in 2012.



ASSESSMENT REPORT


CAR No

Ref Std



Closing Date

2011.48

6.1.5 Company has no sufficient evidence of identification of social impacts (positive and negaitf) on the smallholder scheme including management or actions to be taken.


Company must identify the social impacts (positive and negaitf) on the smallholder scheme including management or actions the company should perform.

January 17, 2013

Has provided advanced reporting Social Impact Study 2011 & 2012 for the main plant and Plasma plant explaining the negative and positive impact on society.


2011.49

6.3.2 The handling of complaints in addition to the land claim, conducted in temporary because the complaint is not public submitted in writing so that the company has no record.

Office CFA Prior to S1

The company is recommended to socialized the community complaint can be submitted in writing so the company can make record for the complaints

January 17, 2013

Has provided communication log book in each estate that contains all incoming Letter (including if any public complaints).


2011.50

6.11.1 CD / CSR programs already done by the company are not fully in accordance with the Basic Need of the local community.

POM and Estate

CFA Prior to S1

Company is recommended to prepare CD/CSR Program in accordance with the Basic Need the surrounding community.

January 17, 2013

Provided evidence of record contribution to local development in the form of payment of tax (PBB), Implementation of CD / CSR has been adapted to the needs of surrounding community.


2011.51

7.5.2 The company should conduct socialization of its planting plan for land cleared in 2008 covering 141 Ha.

Estate CFA Prior to S1

Company is advised to have documented socialization of plantation opening plan including the planting plan of land cleared in 2008 covering 141 Ha.

January 17, 2013

Not found new development areas or replanting at local land


2011.52

8.1.1 Company has not fully made an action plan based on the outputs of evaluation of monitoring and assessment of environmental and social impacts such as the outputs of monitoring and assessment of reservoir water quality that exceeds


Company/organization must establish an action plan based on evaluation of monitoring and assessment of environmental and social impacts such as results of monitoring and assessment of

January 17, 2013

The Company has evaluated the test results related to reservoir water that exceeds the quality standards and have performed acts such as Water Treatment Plan.



ASSESSMENT REPORT


CAR No

Ref Std



Closing Date

the standard parameter of TSS, such as in Bakau Estate

reservoir water quality that exceeds the quality standard for parameter of TSS for example in Bakau Estate

2011.53

SCCS 2.2 (2009)

2.1 (2011)

In practice, any documents inconsistent with the received or incoming FFB, LMR confirms it to the driver by verifying the garden (SPB maker). Mechanism or procedure to handle documents inconsistent with raw materials is unavailable.

Mill Minor Prior to Stage 1

Company must create a mechanism or procedure to address non conformance raw materials (documents)

January 18, 2013

PALM OIL MILL Bebunga has mechanism / procedure in handling mismatche of raw material by separating receipt document are certified and not certified to use a different stamp.


2011.54

SCCS 3.1 (2009)

4.1 (2011)

There is no a procedure for sale and delivery of certified CPO which details category of raw material mentioned in the minutes and invoice of CPO to be dispatched.


Company must make arrangements by mentioning raw material category (Massbalance) on the minutes and invoice of CPO to be sent

January 18, 2013

In the procedure Number: RSPO/501/SCCS/LMR Revision o1 dated 1 November 2012 stated that the delivery of product to the buyer (CPO & Kernel) and selling of product include model information

Supply Chain Mass Balance


2011.55

SCCS 5.2 (2009)

3.2 (2011)

The retaining period of records on the supply chain production of CPO for 5 years has not been fixed, for example of daily production report, monthly production statistic, grading recapitulation in Pondok Labu POM.

Mill CFA Prior to Stage 1

Organization is recommended to set the retaining time of records and reports of at least 5 years relevant to SCCS.

January 18, 2013

In the procedure Number: RSPO/501/SCCS/LMR Revision 01 dated 1 November 2012 explained that the shelf life of the entire record / records or reports of TBS receiving in PALM OIL MILL, CPO processing, product storage (CPO, Palm Kernel) following delivery to the buyer is 5 years.


2011.56

SCCS 5.3.a 5.3.b

There is data or record of FFB accepted and CPO produced and sold and the remaining stock on a

Mill CFA Prior to Stage 1

The POM unit is recommended to prepare a monthly balance sheet of the

January 18, 2013

PALM OIL MILL Bebunga has recorded and balancing all certified



ASSESSMENT REPORT


CAR No

Ref Std



Closing Date

(2009) 3.3.a 3.3.b (2011)

monthly basis, but still not in the form of a monthly balance sheet recapitulation.

acceptance and delivery of certified CPO and the remaining stock.

and non-certified TBS production, and the delivery of CPO and Kernel in the Monthly Summary of Sustainable Report FFB, CPO and Kernel. There are also reports Monthly Period 3.

2011.57

SCCS 6.1 7.1 (2009) 5.1 6.1 (2011)

The company has implemented the SCCS implementation supporting system, in the form of Sime Weight System, SPB and related procedures, but a specific SCCS training has not been conducted, although the relevant training plan has been prepared to be held on the middle of June 2011.


POM should conduct a specific training on SCCS in accordance with the training plan.

January 18, 2013

The Company has conducted training SCCS on 3 November 2012 that locatedi in big office Bebunga Estate. The training was attended by 24 participants with the material presented in the form: Training

Matrix SCCS and RSPO/501/SCCS/LMR Revision 01. In the Declaration-6 (1 November 2012) stated that the claims of the product (CPO & PK) RSPO certified in compliance with RSPO Guideline for Communication and Claims.



ASSESSMENT REPORT


3.5.2 Identification of Findings, Corrective Actions and Observations at S1 Assessment During the S1 assessment, there were 1 (one) Nonconformity (ies) were assigned against Major Compliance Indicators, and 6 (six) opportunities for improvement were identified. Further explanation of the non-conformities raised and corrective actions taken by the company are provided in this section. The company prepared a corrective action that was reviewed and accepted by MUTU and corrective actions taken to close all non-conformities shall be verified during next assessment.

CAR No

Ref Std Non Conformity Location Grade Time Limit

Corrective Action Observation Status Tanggal Closed

2013.01

Major 6.2.1

Socialization SOP regarding the relationship with the Society. Provided SOP Communication and Consultation Communication with the public following record evidence of communication with the public. However, based on field visits in 3 Villages (Desa Lintang Jaya, Desa Balaimae and Desa Segendang) obtained information that the public has not been getting socialization about procedur above.

Kebun &

Pabrik

Major 19 Maret 2013

The company must submit / Communication and Consultation Procedure socialize with transparent methods to local communities and affected other groups.

January 23, 2013

Provided record in the form of Attendance, Socialization Material & socialization implementation pictures, SOP regarding the relationship with the community in the Desa Tamiang, Binturung, Lintang Jaya, Segendang, Kladen & Mulyoharjo/Sebang-au.

Closed 23 Jan 2013

3.5.3 Opportunity for Improvement

No Ref Std Description

1 Major 1.1 Recommended for companies to be more active in accommodating the request oral information submitted by the parties, such as requests for information related to the head of Desa Binturung to requests for information about the HGU.

2 Minor 2.2.5; Major 6.3.1

PT. LMR socialize procedures related to social interaction with people around the plantation so that people know and can agree to a deal that was built with (Free Prior Informed Consent for).

3 Major 3.1.1 The company has an opportunity to adding information on the business plan (budget) according to the recommended RSPO, melputi: quality planting

materials, crop projections (trend TBS), a trend of OER, the cost of production per ton of CPO, the price estimate (TBS, CPO, PK, PKO) , financial indicators and trends TBS average of 3 years in the last 10 years.


ASSESSMENT REPORT


No Ref Std Description

4 Minor 5.3.4 Integration needs to make the analysis of waste to ensure that the organization will reduce waste and more efficient use of material.

5 Minor 5.4; Major 5.6; Major 8.1.1

Companies need pementauan efforts to reduce emissions and pollution secra periodic, such as monitoring usage trends shell, fiber and diesel annually in the last 3 years.

6 Minor 6.2.2 Companies likely to improve response mechanisms related aspirations (respect to future responses and assurances as to the aspirations of the people).

3.5.4 Noteworthy Positive Components

No Ref Std

Description

1 Has achieved RSPO certificate

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

3 Personal competence in their respective fields

4 Supporting Facilities and infrastructure adequate for employees


ASSESSMENT REPORT


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

Issues from Public (Institutions / LSM / Community)

Management Response Tanggapan Auditor

Environment Agency Kotabaru

a. Verification result by the Ministry of Environment Jakarta to PT. Langgeng Muaramakmur and PT. Paripurna Swakarsa related PROPER assessment got red category because there are several assessment parameters can not be fulfilled. Environment Ministry gave a party rebuttal to the company to be able to supply the parameter with periods of 6-14 days from the time of assessment.

b. Agency for Industrial Research and Standard (BARISTAN) is the agency selected and approved directly by the Environment Ministry to analyze the test results of wastewater sample, including the reference of given decrees No. LH.51/Men/LH/10/1995. Companies must be able to demonstrate management actions if some parameters according to the test results have not been specified threshold value. Because the reference is not to the classification rules effluent that is applied back to the land (Land Application).

PROPER in 2011-2012 to PT LMR temporarily assessment can get RED because there are several things that have not been viewed, such as air emissions should be done twice a year once new. And will be fixed for those things which are expected to be minimal value BLUE For air emissions semester 2012/13 have been made on 2 November 2012 and the plan for the second semester in April 2013. As for the analysis of wastewater is done every month. To usage permit of wastewater applied (Land Application) in accordance with Decree LH No 29 of 2003 article 3 paragraph 1, are BOD maximum of 5000 mg / liter; pH between 6-9; not conducted on peatlands and there should be a monitoring wells. As for the ministerial decree No. LH. 51/Men/LH/10/1995, is to be released into the environment (river) not for land application.

Environment Proper assessment is the authority of the Ministry of Environment, in this case, PT LMR was getting under process to obey all relevant environmental regulation. LMR partys has submitted evidence of rebuttal / fixes addressed to Deputy affairs agroindustrial pollution control. Bebunga mill effluent is managed to be applied to the field / plant. Data of result for effluent quality measurement demonstrate its test parameter are below the threshold required under KepmenLH 29 2003.

Forestry Agency Kotabaru


ASSESSMENT REPORT




a. Status area: According to information, the local Forest Agency difficulties in conducting imaging the status of the establishment because it does not get digitized map of the concession of the issuing agency.This has an impact on the outcome of land use maps that are not presented optimally to determine the status of the area managed by PT. LMR

b. Management of protected areas: The area of plantation PT.LMR is around the coastal border. But the company has not maximize the form of conservation management activities in the area. Various maintenance activities need to be done such as rehabilitation of coastal land by planting mangrove vegetation or other forms of management.

To further maximize the conservation management of coastal areas will be made in a more targeted program:

1. Assign tasks to the foreman of HCV to monitor the program to be carried out

2. Preparing seeds such as mahogany, sungkai, turi, pine, hibiscus and others

3. Planting, maintaining and nurturing the plants that grow well.

Plantation Agency Kotabaru

a. Related Reporting plantation PT.LMR has always delivered on a regular basis

b. Dinas Plantation Office hopes a harmonious

relationship with the community could be improved to avoid any potential conflict. In addition to creating a positive impact on the existence of the plant itself, so that the economy of the surrounding plant can be better than ever.

Reporting will be done routinely

There will always be a harmonious relationship with the surrounding community plant to avoid any potential conflict by:

1. Use of local contractors (plant community) to work on projects in the plant.

2. Empowering local workforce (community plants).

3. The implementation of CSR programs


ASSESSMENT REPORT




Labor and Transmigration Agency Kotabaru

a. PT. LMR P2K3 regularly submit reports every 3 months.

b. According to the Department of Manpower and

Transmigration that the doctor in PT. LMR and PT. PSA does not have a statement letter of appointment from the appropriate Hiperkes mandated by the Minister of Manpower, Transmigration and Cooperatives No..PER/01/MEN/1976 Hiperkes Obligations Exercises For Doctors Company.

c. Labor has not done the medical check up

periodically. If the checking has been carried out, then the company should deliver evidence to the Disnaker or attached in the report P2K3.

d. Officers P3K company does not have a license and

corresponding activity book P3K mandated the Minister of Manpower No. 15 of 2008 concerning P3K workplace.

Will continue to be consistently maintained While being carried out the process was a notification letter designation from hiperkes. Medical check up has been done periodically and the evidence reported along with the report p2k3. Will do training for staff P3K and made activity books.

The company doctor had received training hiperkes and occupational safety from Ministry of Manpower And Transmigration. It corresponds mandated by permenakertrans 1 1976. Company’s have arrange a program interval examination for labors especially who works on stasiun-stasiun risky. Routine check has been done.

Lintang Jaya Village Head

The Company has been provide assistance for road maintenance

The boundaries stones between companies and public land is clear


ASSESSMENT REPORT




No program CD / CSR that are routinely

There is no SOP socialization associated with the community

The Company will provide appropriate assistance degan financial capability and approval from headoffice SOP will be followed by socializing associated with the community

Companies should implement the program CD / CSR in accordance the community basic need The procedure was supposed to be well known and understood by the public

Balimea Village Head

The boundaries stones between companies and public land is clear



The Company will provide appropriate assistance degan financial capability and approval from headoffice SOP will be followed by socializing associated with the community


Segendang Village Head

Plan for Smallsholders program has not been implemented until now



Smallsholders program depends on the location and permit local governments The Company will provide appropriate assistance degan financial capability and approval from headoffice SOP will be followed by socializing associated with the community



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:

Company Name

Mutuagung Lestari

Management Representative

Lead Auditor

Mohamad Pirabaharan

Oktovianus Rusmin

March, 28 2013

March, 28 2013


ASSESSMENT REPORT


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

Date of Contact

1 Environment Agency Kotabaru Kotabaru South, kalimantan - Interview January 19

2003

2 Plantation Agency Kotabaru Kotabaru, South kalimantan - Interview January 19

2003

3 Forestry Ageny Kotabaru Kotabaru, South kalimantan - Interview January 19

2003

4 Labor and Transmigration Agency Kotabaru

Kotabaru, South kalimantan - Interview January 19

2003

5 Lintang Jaya Village Head Village of Lintang jaya, Subdistrict of pamukan utara, District Of Kotabaru, South kalimantan

- Interview January 19

2003

6 Balimea Village Head Village of Lintang jaya, Subdistrict of pamukan utara, District Of Kotabaru, South kalimantan


2003

7 Segendang Village Head Village of Lintang jaya, Subdistrict of pamukan utara, District Of Kotabaru, South kalimantan


2003

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


ASSESSMENT REPORT


DATE January 17 – 19, 2013

PLANNED TIME

ACTUAL DURATION

PROCESSES / CLAUSES TO BE AUDITED AUDITOR

Thursday, 17/01/2013

08.00-09.00 AM

09.00-12.00 AM

12.00 AM-02.00

PM 02.00 -05.00 PM

Thursday, 17/01/2013

08.00-09.00 AM

09.00-12.00 AM

12.00 AM-02.00 PM

02.00 -05.00 P

Opening Meeting

Document verifications, in e.g.

Principal 1 (Information request & Response)

Principal 2 (Fulfilment of Regulation, Land Tenure, Community Agreement.)

Principal 3 (Company Working Plan and Replanting program)

Principal 4 (Operational records of Harvesting, Spraying, Upkeep, Fertilizer Application, IPM, Buffer Zones, Terracing, Stores, Workshop, etc)

Lunch & Pray Document verifications , in e.g.

Principal 5 (Environment report, HCV area)

Principal 6 (Worker Contracts, Pay & Conditions, External Stakeholders Communications, Labor welfare and facilities, local contributions

Principal 7 (new planting or replanting implementation)

Principal 8 (Continuous Improvement)

OR/TM/YWR/AR/MAY

Friday, 18/01/2013

08.00 AM- 05.00 PM

Friday, 18/01/2013

08.00 AM- 05.00 PM

Field Visit

Harvesting, Spraying, Upkeep, Fertilizer Application, Buffer Zones, Terracing, Stores, Workshop, etc..

Inspect Housing, health facilities, Interview of Residents, Clinic Staff, Office Staff, Interview External Stakeholders, Local Community , public consultation

Mill processing, Effluent treatment, chemical storage, Safety and health procedure, interview contractors, etc

OR/TM/YWR/AR/MAY

Saturday, 19/01/2013

08.00- 12.00 AM

12.00 AM-02.00 PM

02.00 -04.00 PM

04.30.06.30 PM

Saturday, 19/01/2013

08.00- 12.00 AM

12.00 AM-02.00 PM

02.00 -04.00 PM

04.30.06.30 PM

Preparation of Audit Results (Summary) Lunch & Pray Closing Meeting Travel from PT. LMR to PT. SAA

OR/TM/YWR/AR/MAY

Appendix 2. Assessment Program


ASSESSMENT REPORT


Appendix 3. Glossary

EIA : Environmental Impact Analysis

PPE : Personal Protective Equipment

PFFT : Portable Fire Fighting Tools

B3 : Hazardous Waste

BAPEDALDA : Regional Environmental Impact Management Agency

BBE : Bebunga Estate

BBF : Bebunga Factory

BBM : Fuel Oil

BKE : Bakau Estate

BLH : Environmental Affairs Agency

BOD : Biological Oxygen Demand

BPN : National Land Agency

BSS : Block Spraying System

CITES : Confention On International Trade Endanger Species

COD : Chemical Oxygen Demand

CPO : Crude Palm Oil

CSR/CD : Corporate Social Responsibility/ Community Development

HCV : High Conservation Value

HGU : Land Exploitation Rights

HIRAC : Hazard Identification Risk Assessment Control

WWTP : Waste Water Treatment Point

JAMSOSTEK : Jaminan Sosial Tenaga Kerja (Social Security Plan for Workers)

KAN : Komite Akreditasi Nasional (National Accreditation Committee)

KKPA : Kredit Koperasi Primer Anggota (Primary Cooperatives Credit Members)

LC : Land Clearing

LD50 : Lethal Dosage (Certain dosage that can kill 50% of total population)

LMR : Langgeng Muara Makmur

NGO : Non-Governmental Organization

MSDS : Material Safety Data Sheet

P2K3 : Committee for Occupational Health and Safety Development

PBB : Land and Building Taxes

Permentan : Regulation of Minister for Agriculture


ASSESSMENT REPORT


IPM : Integrated Pest Management

PK : Palm Kernel

CLA : Collective Labor Agreement

POM : Palm Oil Mill

POME : Palm Oil Mill Effluent

PP : Government Regulation

PSD : Plantation Service departement

PUK : Working Unit Head

PSQM : Plantation Sustainablity Quality Management

RKL : Environmental Management Plan

RPL : Environmental Monitoring Plan

RSPO P&C : Roundtable on Sustainable Palm Oil Principle and Criterion

SCE : Sungai Cengal Estate

SKU : Business Unit

SOP : Standard Operating Procedures

SPSI : Indonesian Trade Union

ST1 : Stage 1 (Pre-Assesssment)

ST2 : Stage 2 (Main Assesssment)

S-1 : Surveillance 1

FFB : Fresh Fruit Bunches

UMR : Regional Minimum Wage

UU : Laws

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