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PT MUTUAGUNG LESTARI

ASSESSEMENT REPORT

Sustainable Palm Oil Certification

Stage I Stage II Surveillance Assessment Report

Owner : MINAMAS Plantation - Sime Darby Group Plantation Name : PT. Laguna Mandiri

Nation : Indonesia

Location : Pamukan Utara Sub District, Kotabaru District, South Kalimantan Province

Certificate Code : MUTU-RSPO/009

Date of certificate issued : December, 30th 2011

Date of certificate expired : December, 29th 2016

Assessment Date

Reporting Date

PT Mutuagung Lestari Auditor Checked by Approved by

ST1 April, 08 2011 April, 14 2011

May, 01 2011

Taufik Margani (Lead Auditor), Nanang Mualib (Lead Auditor Witnessed), Muardi Marwas

(Auditor), Junser Naibaho (Auditor)

Tony Arifiarachman

Tony Arifiarachman

ST2 May, 30 2011 June, 04 2011

July, 07 2011 Nanang Mualib (Lead Auditor),

Muardi Marwas (Auditor), I Wayan Sudi Antara (Auditor)

Taufik Margani

Tony Arifiarachman

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Mutuagung Lestari Jl Raya Bogor Km 33.5 No. 19 Cimanggis Depok 16953 Indonesia

Submitted to RSPO on: Approved by RSPO on Approved by CB

September, 21th 2011 December, 21th 2011 December, 30th 2011

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

Email : [email protected] www.mutucertification.com

MUTU Certification Approved by RSPO Secretary on June 2008

http://www.mutucertification.com/


ASSESSEMENT REPORT

SPO 4006a i Prepared by Mutuagung Lestari for Laguna Mandiri

TABLE OF CONTENT

1.0 CERTIFICATION SCOPE 3

1.1 National Interpretation Used 3

1.2 Organization Information 3

1.3 Assessment Type 4

1.4 Location Estate and Mill; and hectare 4

1.5 Land Use Description 5

1.6 Cycle and Planting Year 5

1.7 Certified Product Tonnage Estimation 6

1.8 Other Certificate 6

1.9 Time Bound Plan for Other Management 6

2.0 CERTIFICATION PROCESS 8

2.1 Certification Body 8

2.2 Lead Auditor and Auditor Team 8

2.3 Assessment Method, Progress, and Field Visit 9

2.4 Public Consultation and List of Stakeholder Contacted 14

2.5 Determining the Next Visiting 14

3.0 ASSESSMENT FINDING

3.1 Summary of Non Conformance, Corrective Action and Observation on Stage 1 15

3.2 Summary of Non Conformance, Corrective Action and Observation on Stage 2 28

3.3 Summary of Arising Issues from Public, Organization and Auditor Responses 31

4.0 ACKNOWLEGMENT OF CERTIFIED ORGANIZATIONS AS INTERNAL RESPONCIBILTY

4.1 Authorized signature of Assessment Findings 35

ANNEX

1 Checklist of RSPO Certification Assessment Results 36

2 Checklist Supply Chain 98

3 Peer Review Report 103

4 Result of RSPO Panel Committee Review 104

5 List of Stakeholder contacted in the Stakeholder Consultation 105

6 Glossary 107

FIGURE

1 Map of Laguna Mandiri 1

2 Areal Statement of Laguna Mandiri 2


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SPO 4006a Page 1 of 107 Prepared by Mutuagung Lestari for Laguna Mandiri

FIGURE 1. Map of PT. Laguna Mandiri


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Figure 2. Areal Statement of Laguna Mandiri


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1.0 CERTIFICATION SCOPE

1.1 National Interpretation Used National Interpretation of RSPO Principles and Criteria for Sustainable Palm Oil Production, Republic of Indonesia, May 2008.

RSPO Supply Chain Certification System, November 2009

1.2 Organization Information

1.2.1 Company Name PT. Laguna Mandiri

1.2.2 Contact person Mohamad Pirabaharan

1.2.3 Address The Plaza Office Tower, 36th Floor, Jl. M. H. Thamrin Kav. 28-30, Jakarta 10350

1.2.4 Telephone +62-21-29926000

1.2.5 Fax +62-21-29922686

1.2.6 E-mail [email protected]

1.2.7 Website www.simedarby.com

1.2.8 Organization Status Perseroan Terbuka

1.2.9 Application information completed by representative management

Mohamad Pirabaharan

1.2.10 RSPO member Registration September, 8th 2004

1.2.11 Number of Employee 2.365

1.2.12 Number of Local Contractor 122

1.2.13 Contractor 8 Companies

*Based on Direct Appointment by Minamas Jakarta

1.3 Assessment Type

1.3.1 Assessment Scope 1 (one) Mill namely Rantau Factory which obtained FFB by 4 (four) estates namely Rantau Estate, Sekayu Estate, Betung Estate and Matalok Estate.

1.3.2 Certification Type Single

1.3.3 Name of company covered by the Certificate PT. Laguna Mandiri

1.3.4 Number of Management Unit 1 Mill and 4 estates

1 Mill (Betung Factory) is under construction

mailto:[email protected]://www.simedarby.com/


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1.4 Location of estate, Mill and hectare statement

1.4.1 Location of estate

Estate Name Location GPS Coordinate Planting Area (Ha)

FFB Production Average

2008-2010 Latitude Longitude

Sekayu

Sekayu Village, Pamukan Utara Sub District, Kotabaru District

22319 -21823 1160631 - 1161155

3,243.81 37,541.15

Betung Betung Village, Pamukan Utara Sub District, Kotabaru District

22416 -21825 1161051 - 1161410

2,716.68 21,839.45

Rantau

Rantau Buda Village, Pamukan Utara Sub District, Kotabaru District

22849 - 22351 1160326 -1160743

4,235.94 84,735.11

Matalok Bepara Village, Pamukan Utara Sub District, Pamukan Utara District.

22826 - 22433 1160603 - 1161025

2,570.91 45,450.83

Total 12,767.34 189,566.54

1.4.2 Location of Mill

Factory Name Location

Coordinate

Latitude Longitude

Rantau Rantau Buda Village, Pamukan Utara Sub District, Kotabaru District

2 26' 21" LS 1166' 51" BT

Betung Betung Village, Pamukan Utara Sub District, Kotabaru District

2 22 45 LS 11612 11 BT

1.4.3 Map Figure 1 and 2

1.4.4 Sub district/District/Province Pamukan Utara/Kotabaru/South Kalimantan

1.4.5 Nation Indonesia

1.4.6 Region South East Asia

1.4.7 Land Ownership

Private -

State 15,300 Ha*

Community -

* Based on Land Use Permit HGU 13/Kotabaru; HGU 46/Kotabaru; HGU 47/Kotabaru HGU 48/Kotabaru; HGU 50/Kotabaru; HGU 51/Kotabaru HGU 52/Kotabaru; HGU 53/Kotabaru; HGU 54/Kotabaru HGU 49/Kotabaru


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1.5 Land Use Description

1.5.1 Total area 15,300 Ha

1.5.2 Mature area 12,579.94 Ha

1.5.3 Immature area 295.40 Ha

1.5.4 Mill 52.07 Ha

1.5.5 Emplacement 225.03 Ha

1.5.7 Occupation 1,453.98 Ha

1.5.8 Street and bridge 479.99 Ha

1.5.9 Other area 17.18 Ha

1.5.10 River and Valley 95.73 Ha

1.5.11 Reserve Area 100.69 Ha

1.5.12 Product Fresh Fruit Bunch/Crude Palm Oil/Palm Kernel

1.5.13 Actual Production*

CPO 43,459.74* Ton

Palm Kernel 9,278.5* Ton

OER 22.21 %

KER 4.741 %

*Based on Mill and estate document of 2010/2011 (11 month)

1.6 Cycle and Planting year

1.6.1 Age profile of planted

Planting Year Hectare Age

1992 78.94 18

1993 1,110.38 17

1994 961.89 16

1995 1,200.49 15

1996 3,471.24 14

1997 2,512.25 13

1998 3,007.75 12

1999 237.00 11

2007 133.20 3

2008 108.00* 2

2009 54.20** 1

Total 12,875.34

Average 13

* matalok estate; ** betung estate

1.6.2 Replanting area after 2007 - Ha

1.6.3 New Planting area after 2007 extension 295.4 Ha

1.6.4 Harvesting cycle 7 Day

1.7 Approximate Tonnage certified*

OER 22.24 %

KER 4.39 %


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FFB 189,566.54 Ton/year

CPO 42,171.76 Ton/year

PK 8,330.437 Ton/year

*Based on average production of 3 years

1.8 Other Certification

1.8.1 ISO 9001:2008/ISO 14001: 2004 -

1.8.2 OHSAS 18001:2007 -

1.8.3 HACCP -

1.8.4 Other -

1.9 Time Bound Plan

1.9.1 Time Bound Plan for other management unit of SIME DARBY Plantation Sdn Bhd.

SIME DARBY Plantation Sdn Bhd has committed to make time bound plan for all units under managements in implementing Principle and criteria standard or to gain RSPO certificate. Auditor has considered the plan due to RSPO Certification System for partial Certification. Progress of time bound plan will be verified and reported in the next surveillance.

Certification

Status

Number of Strategic Operating Units (SOUs) Remark/Details

Malaysia Indonesia

Certified 33 11 44 Mill Malaysian and Indonesian have been certified until 31 December 2011

EB Review 6 6 Reviewed by RSPO Secretariat

Audited 0 6 External audited done in July 2011

Total SOUs 39 23

1.9.2 Time bound plan for other management units of SIME DARBY Plantation Sdn Bhd.

No Company Names Location Hectare Plan(year) Status

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

7,734.60 2009

Certified

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

Certified

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

Certified

4 PT. Bahari Gembira Ria Muaro Jambi District Jambi 1,202.04 2010 Audited

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

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

7 PT. Kridatama Lancar Seruyan and Kotawaringin Timur District Central Kalimantan Province

14,779.92 2010

Certified

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

Certified

9 PT. Ladangrumpun Suburabadi Tanah Bumbu District South Kalimantan Province

6,077 2010 Certified

10 PT. Sajang Heulang Tanah Bumbu District South Kalimantan Province

7,794 2010

Certified


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11 PT. Bersama Sejahtera Sakti Kotabaru District South Kalimantan Province

13,925 2010 Certified

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

16,601.66 2010

Certified

12 PT. Budidaya AgroLestari Ketapang District West Kalimantan Province

1,002 2011 Audited

13 PT. Guthrie Pecconina Indonesia

Musi Banyuasin District South Sumatera Province

10,139.91 2011

Audited

14 PT. Langgeng Muaramakmur Kotabaru District South Kalimantan Province

16,361.77 2011

Audited

15 PT. Mitra Austral Sejahtera Sanggau District West Kalimantan Province

8,741.29 2011 Audited

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

6,451.99 2011

Audited

17 PT. Paripurna Swakarsa Kotabaru District South Kalimantan Province

14,892 2011

Audited

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

1,128.90 2011

Audited

20 PT. Sandika Natapalma Ketapang District West Kalimantan Province

8,406.21 2011

Audited

21 PT. Swadaya Andika Kotabaru District South Kalimantan Province

10,361.18 2011

Audited

22 PT. Tamaco Graha krida Morowali District Central Sulawesi Province

4,145.00 2011

Audited


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2.0 THE ASSESSMENT PROCESS

2.1 Certification Body

PT Mutuagung Lestari

Jl. Raya Bogor Km 33,5 No. 19

Cimanggis - Depok 16953 Indonesia

Telephone +62-21-8740202

Fax +62-21-87740745/46

Website: www.mutucertification.com

Email : [email protected]

2.2 Lead Auditor and Auditor Team

2.2.1 Auditor Team

ST1 Auditor Team consisted of:

1. Taufik Margani (Lead auditor). Bachelor of Forestry majoring in Forest Management. Specialists in Environmental

sector. He has led several audits for Sustainable Forest Management in Indonesia (under the scheme of LEI-Lembaga

Ekolabel Indonesia and FSC-Forest Stewardship Council) and Lead Auditor for FSC Track of Custody. Other

experiences: He is a registered IRCA Lead auditor for Environmental Management System and Quality Management

System. Since 1999, he has worked for an independent certification agency and has conducted a number of Audits of

Environmental Management System, Quality Management System, and RSPO in Malaysia and Indonesia. Currently he

works General Manager of Management System Certification. In Stage-1 activity, he conducted the assessment on legal

and environmental aspects.

2. Nanang Mualib (Lead Auditor Witnessed). Bachelor of Forestry, Majoring in Forestry Technology. Faculty of

Forestry Bogor Agricultural University. He has a working experience in the forest concession company (HPH) from 2000

to 2004 as a technical assistant in the implementation of Sustainable Forest Management certification, a collaboration

between the Faculty of Forestry, Bogor Agricultral University and WWF-Indonesia since December 2006 to 2008.

Professional experiences include: Social studies of HCV in monitoring the implementation of Sustainable Forest

Management, involved in the identification of HCV in three oil palm plantation companies in Indonesia. Currently he

works as a professional consultant and assessor of HCV. In the current Stage-1 activity he conducted the assessment on

the aspects of legal, social, and labor.

3. Muardi Marwas (Auditor). Bachelor of Agricultural Science, Majoring in Agronomy and Horticulture, Bogor

Agricultural University. He has conducted assessments of Roundtable Sustainable Palm Oil (RSPO) Certification in

Indonesia for several times. Currently, he works at one of the independent certification agencies. He has attended

http://Website:%20%20www.mutucertification.com


ASSESSEMENT REPORT


trainings RSPO Lead Auditor and Wekkness Distribution Quality Management Process (DQMP) APMEA. In this activity,

he conducted an assessment on aspects of crop cultivation, Management System of Occupational Health and Safety

(OHS).

4. Junser Naibaho (Auditor). Bachelor of Forestry and A Master of Environmental Science. He has working

experiences in forestry sector for 15 years and as Plantation Manager at Pacific Fiber Group for three years.

Certificates and training attended: EIA Certificate A and B, the National Training on Capacity Building to Address

Climate Change and its Adverse Effects, 2001, Training of Trainers for the Application of the ITTO and National Criteria

and Indicator for Sustainable Forest Management at Forest Management Unit Level 2001, ISO 14001:2004, the 1st

winner SGS Indonesia Quality Network Conference in Jakarta in 2008 and RSPO Lead Auditor Training year 2010. In

this activity, he conducted an assessment of environmental aspect.

ST2 The assessment team consisted of:

1. Nanang Mualib (Lead Auditor).

2. Muardi Marwas (Auditor).

3. I Wayan Antara (Auditor). Bachelor of Agricultural Engineering, majoring in Agricultural Mechanization, Faculty of

Agricultural Technology, Bogor Agricultural University. He has experienced in preparation of EIA since 1990, has been

involved as a field auditor of Sustainable Forest Management performance appraisal for both the scheme of Lembaga

Ekolabel Indonesia (since 1997) and the scheme of Ministry of Forestry (since 2002). Currently he works as a

professional consultant and Forestry auditor. In Stage-2, he conducted an assessment on the environmental aspect.

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2.3 Assessment Method, Progress, and Field Visit

2.3.1 Date of Assessment

ST1 Stage 1 was conducted on 8 to 14 April 2011.

ST2 Stage 2 was conducted on 30 May 2011 to 5 June 2011.

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2.3.2 Estimation of person days for the assessment implementation

ST1 Assessment implementation of stage 1: 20 person days

ST2 Assessment implementation of stage 2: 18 person days

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2.3.3 Detailed Implementation of Assessment

ST1 Stage-1 Activity aimed to measure the readiness of the organization in implementing principle of National Interpretation

requirement and Roundtable Sustainable Palm Oil standard (INA-NIWG RSPO), personal understanding related to the

implementation of RSPO standards, site condition, the process approach to the aspects of certification, identifying

stakeholders, to evaluate the internal audit and management in planning and performance to the implementation of

RSPO, and to see the organization's readiness in order to prepare Stage 2.

The method of this assessment implementation was conducted by three ways: 1. Document Review, aimed to assess

the adequacy of companys documents. 2. Field Visit, aimed to assess the adequacy of implementation of activities in

the site. 3. Interviews, Aimed to obtain more detailed information and crosscheck. The auditors was divided into 3 teams

namely legal and social (companys legal documents, social management, and labor), Best Management Practices

(occupational safety and health, mill and estate cultivation techniques) and environment (environmental management).

Some referrals for improvement of Stage-1 results were conveyed to LMI management, and the results would be the

verification material for the main assessment stage (Stage-2). All information obtained was recorded in Check List of MAL

auditor and became the main annex of Assessment Report. The detailed assessment process is as follows:

8 April 2011. Opening Meeting, Assessment began with the opening meeting in Rantau Estate (RTE) RSPO Secretariate

Room, attended by Rantau Estate Manager (RTE), Matalok estate Manager (MTE), PSQM Assistant (Plantation

Sustainable Quality Management), Rantau Mill Manager, a company doctor, Rantau Mill Senior Assistant, Sekayu estate

Mill Manager, head of administration and several other related personnels. Then it was followed wih legal and

environmental documents review.

9 April 2011. The team conducted a document review. Auditors focused on reviewing the company documents relating to

cultivation technique, environmental management, social management, and OHS. In the afternoon, the team visit the

mill.

10 April 2011. The team prepared reports.

11 April 2011. The team determined the locations to be visited and notified them to the company. The auditor is divided

into two teams to review the implementation of the hazardous waste management, riparian areas, and OHS facilities.


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12 April 2011. Visits to the mill (Betung mill), estate, and villages surrounding the company.

13 April 2011. Clarification of the results of site visits followed with Closing Meeting in RSPO Secretariate Room RTE.

General Manager of PT. Laguna Mandiri and PT. Swadaya Andika, RTE Manager, MLE Manager, Betung estate Manager

(BTE), Sekayu estate Manager (SYE), Doctor, PSQM Assistant, Safety Officer Rantau Mill (RTF) and other support

department staffs, attended the closing meeting.

14 April 2011. Traveling to Jakarta.

ST2 Stage-2 activity is aimed to measure the efforts of the company's implementation in implementing the requirements of

National Interpretation of Principles and Standards of Roundtable Sustainable Palm Oil (RSPO INA-NIWG), and evaluate

the assessment results of Stage-1 activity. The assessment implementation method was conducted in 4 ways: 1. Public

consultation, is aimed to obtain information from stakeholders regarding the management of oil palm in the companys

work area. 2. The document review, is aimed to assess the adequacy of companys documents. 3. Field Visit, aimed to

assess the adequacy of companys documents. 4. Interview, is aimed to obtain more in-depth information and

re-clarification regarding important issues that arise during the public consultation. Auditors were divided into 3 teams

namely legal and social (legal documents, social management and labor), environmental (mill and estate environmental

management documents), Best Management Practices and OHS (Occupational Health and Safety documents,

cultivation techniques). Some of conformance and non-conformance to the standards was presented to PT. LMI

management during the closing meeting. All information obtained was recorded and became part in the preparation of the

complete report. More details assessment activities are as follows:

30 Mei 2011. Traveling to the locations.

31 May 2011. Public consultation was held at the Long House Selabak Estate and Hotel Kartika, Kotabaru District,

attended by community representatives living around the company, tribe chief of Dayak, government agencies, and

non-governmental organizations / NGOs. Then the public consultation was continued with the Opening Meeting in the

Rantau Estate RSPO Secretariat Office, which was attended by General Manager of Sungai Durian Area, Chairman of

SOU of PT. LMI, PSD (Plantation Services Department) staff, PSQM (Plantation Sustainable Palm Oil) Staff, Rantau Mill

Manager, Mill Senior Assisstant Manager, Matalok Estate Manager, Sekayu Estate Manager, Estate Assistants and some

other related staff. In the afternoon, the team conducted an evaluation of some of the improvements as a follow-up of

Stage-1 activity.

1 June 2011. The team performed an assessment of improvement efforts that have been made by the company. The

Auditors reviewed the environmental, legal and social documents.

2 June 2011. The team focused on the assessment of the land survey documents, solid and liquid waste management

documents, estate operational documents and management of HCV.


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3 June 2011. Auditors prepared a plan for visiting the mill and estate. The results of the discussion were submitted to the

management (PT. LMI). The auditors were divided into two teams, namely:

a. Social team; conducted a visit to villages surrounding the company.

b. Environmental and Best Practices Team; reviewed the solid and liquid waste management, management of

High Conservatioan Value (HCV), plantation management efforts in the sloping area, and interviews with spray

workers.

4 June 2011. The team was conducted the documents review at the mill. The auditors focused on the assessment of

Supply Chain Certification and technical operations at the mill. At the same time, social team visited the community.

5 June 2011. Closing Meeting was held at Rantau Estate RSPO Secretariat, attended by Sungai Durian Area General

Manager, Chairman of SOU PT LMI, Matalok Estate Manager, Sekayu Estate Manager, Betung Estate Manager, Rantau

Mill Senior Manager, PSD Banjarmasin Staff, PSQM Staff, Chief of Administration, and some other related personnels.

After that, the team traveled to PT. Swadaya Andika. Stage -2 assessment results indicate the management unit has

made various efforts of the fulfillment to RSPO requirements, in May 2008 so that the auditors recommende to obtain

RSPO certification. Some of the findings that emerged during the assessment is delivered to the management.

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2.3.4 Sample Locations of Assessment

ST1 Location 1. Blok E28 RTE. Observed the Land Use Right (HGU) Boundary poles of Block B13 RTE.

Location 2. Observed the Land Use Right Boundary poles.

Location 3. Bepara Village. Interviewed community leaders (Head of Bepara Village, Hari) regarding the land conflicts,

HCV socialization, socialization of conflict resolution mechanisms, and CSR activities.

Location 4. Pinang River in Betung Estate. This area is included in secondary forest (HCV 1.3), buffer zone (HCV 1.3)

and HCV 4.

Location 5. Blok K33-K34 BTE, Observing the new planting in year 2009.

Location 6. BTE Private Elementary School.

Location 7. Housing complex of Division III BTE. Observed the housing complex infrastructure.

Location 8. Sekayu Estate. Secondary Forest (1.3) and Enclave.New Housing Central Complex SYE.

Location 9. Betung Mill. The stage of new mill development.

Location 10. Monitoring wells (02274 S, 116069 E) observed the location for water sampling used in further testing

Land application (02273 S, 116074 E) reviewed the efforts for mill liquid waste management.


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ST2 Assessment sample locations were determined based on the results of the review of company documents and issues

arising during public consultations in order to verify the implementation in the field. Auditors make a visit to each estate

unit and mill of PT. LMI. More detailed assessment sample locations are as follows:

Location 1. Hazardous Waste Storage in SYE. Observation on hazardous waste handling. Hazardous waste from

estates recorded in period of December to April 2011 includes Used accumulator of 50 Ampere (9 pieces), used oil (295

liters), the used pesticide packaging and cotton waste. Hazardous waste was temporarily stored in each estate then it will

be sent to the waste storage room in Rantau mill.

Location 2. Hazardous Material Storage in SYE. Observations regarding health and safety systems of warehouse

officers, the availability of Material Safety Data Sheets (MSDS), inspection of fire extinguisher and handling of

agrochemicals. Several types of agrochemicals recorded in hazardous material storage room includes Matador, Azodrin,

Temik, Decis, Gramoxone has not been applied since 2008.

Location 3. Diesel Fuel Tank and Genset House SYE. Monitoring the diesel and used oill handilng.

Location 4. Block J10 BTE. Interviews with Nurida (25 years), Susanti (35 years) regarding technical spray activities,

the pesticides applied, the ban on spraying in the riparian area, the use of personal protective equipment in the form of

Avron, protective goggles, gloves, masks, and safety shoes, dissemination efforts of gender committee, and

remuneration system. Wages paid by the company has been in accordance with the Provincial Minimum Wage of IDR

1,126,000. According to spray workers, the company gave an additional wage in form of rice.

Location 5. Observations on sign board of riparian area (2 26 12 S; 116 08 36 E) and mahogany planting activity

as well as the making of buffer zone boundary in form of yellow-painted oil palm stakes.

Location 6. Land application observation at MLE (2 27 16 S; 116 07 29 E).

Location 7. Observations on horseshoe and connected terrace, which is the strategy of sloping areas management.

Location 8. Observations on HCV 1.3 & 2.3 (secondary forests) in BTE, Signboards were not found in the particular

places (2 23 35 S; 116 11 07 E) but they were placed in oil palm estate at (2 23 24 S; 116 11 36 E).

Location 9. Mangka Village. Meeting with village officials to verify the process of land compensation, CSR program

realization, SOP socialization and environmental issues in the community.

Location 10.Bepara Village. Meeting with village officials to verify the process of land compensation, CSR program

realization, socialization of land conflicts resolution SOP.

Location 11. Sekayu Baru Village. Meeting with village officials to verify the process of land compensation, SOP

realization and environmental issues in the community.

Location 12. Land Use Rights (HGU) poles No. 4 and 15, Land Use Rights (HGU) boundary of the company with the

communitys land. Rantau Estate. Meeting with gender commission regarding companys socialization and policies on

protection of female employees rights.

Location 13. Smallholders group of Rantau Budha. Verification of FFB price transparency, the management of plasma

smallholders, training of plasma smallholders, transparency of FFB grading, cooperation between Village Unit


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Cooperative (KUD) with the company and environmental issues existing in plasma smallholders.

Location 14. Village Unit Cooperative Bina Swadaya Karya, Betung Village. Verification of FFB price transparency, the

management of plasma smallholders, training of plasma smallholders, transparency of FFB grading, cooperation

between Village Unit Cooperative with the company.

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2.4 Public consultation and List of stakeholders contacted

2.4.1 Summary of Public Consultation Process.

Public consultations was held in two places;

a. In the estate, it was aimed to obtain information from the Community Leaders, Head of village, head of

subdistrict and tribe leaders around the working area of PT LMI, it was held in Selabak Estate hall (PT Swadaya

Andika). The event was held on 31 May 2011 at 09:30 WITA and was attended by 40 people consisting of

Bureaucrats (Head of Subdistrict, Police Officers, Koramil, head of Village), Tribe Leaders, Community Leaders,

Village Unit Cooperative Bina Karya Swadaya, supplier and Banking company. The event began with the

introduction of PT Mutuagung Lestari Auditor Team, a brief description of RSPO certification and was continued

with the feedback from public participants.

b. In Pulau Laut district, it aimed to obtain information from the Government Agencies, held at Hotel Kartika. The

event was held on May 31, 2011 at 10:00 WITA. After that, the auditors visited the Forestry Agency and the

National Land Agency.

2.4.2 List of Contacted Stakeholders

See Annex 6

2.4.3 Summary of arising issues from public consultation

See 3.2

2.5 The determination of next visitation

The next visitation would be determined after RSPO Secretariat in Malaysia and/or a year after the certificate is published

review the report.


ASSESSEMENT REPORT


3.0 Assessment Finding 3.1 Summary of Non-Conformances, Corrective action and Observation on Stage 1

No CAR Indicator Non-conformance Grade Location Requests for Corrective

Action Time Limit

Observation and Date Status Closed

Date

2011.01 1.1.2. The company has set SOP of Communications

Procedures (028/LMI-PK/2010) dated 16

December 2010 but until the implementation of

Stage 1, the filling has not been done in

accordance with incoming mails. For example:

The letter from Rantau Buda Elementary

School 2 No. 421.2/56-SD/RB/Disdik/2010

dated 24 November 2010 concerning Donation

Proposal which was followed up by the letter of

Rantau Estate Manager to ad interim GM of

Sungai Durian Estate Area No. 4, January 2011

and then followed up with a letter of ad interim

GM of Sungai Durian Estate to GM of PSD

Banjarbaru No. GM-psd/328/SD/II/2011/M

dated 14 February 2011, there has been no

response from GM PSD to the letter.

CFA RSPO Secretariat RTE

The company is advised to monitor the status of requests for information and determine the time limit to response to requests for information.

Stage 2 The company has perform filling in the log of information requests to the letter of Rantau Buda Elementary School 2 No.421.2/56-SD/RB/Disdik/2010 concerning Donation Proposal.

Closed 5 June 2011

2011.02 1.1.3 The company has not detemined the retention

time of a document which is adjusted based on

its importance in SOP of Records Management

(051/LMI-PC/2010).


The company is advised to determine the retention time of each type of document adjusted based on the importance.

Stage 2 In Revision I of SOP of Records Management (SOP No. 051/LMI-PC/2010), the company has to determine the retention time of the document based on the types and importance.

Closed 4 June 2011


ASSESSEMENT REPORT



Action Time Limit


Date

2011.03 1.2.1 A list of regulations is available but it has not included the entire regulations concerning the management of plantation for example; Regulation of Agricultural Minister No. 26/Permentan/OT.140/2/2007 concerning guidelines of Plantation Operation Licensing.


The company is advised to complete all National, regional and local regulations related to the operation of the estate.

Stage 2 A list of regulations is available in form of regulations physical evidence listed in the list, Regulation of Agricultural Minister No. 26/Permentan/OT.140/2/2007 concerning Guidelines of Plantation Operation Licensing is available in RSPO Secretariat Rantau Estate. Legal documents, environmental documents, social documents and other documents are already available.

Closed 31 May 2011

2011.04 1.2.2 Records of requests and responses has not been made available and the retention time has not been determined.

NC RSPO Secretariat RTE

The company must document the records of requests and responses and determine the retention time.

Stage 2 In the Revision I of SOP of Records Management (SOP No. 051/LMI-PC/2010), the company has determined the retention time of the document based on the type and importance.

Closed 4 June 2011

2011.05 2.1.1 The company has not evaluated compliance with applicable legal requirements. For example, the organization has sought to install Hazardous Material Symbols in the location of Hazardous Material. However, it has not referred to Regulation of Environmental Minister No. 3 of 2008.

NC RSPO Secretariat RTE, Hazardous Material Warehouse, Diesel fuel tank Rantau Estate.

The company must evaluate the compliance of existing law requirements. For example, Hazardous Material Symbols on site must comply with Regulation of Environmental Minister No. 3 of 2008.

Stage 2 The company has replaced Hazardous Material Symbols in accordance with Regulation of Environmental Minister No. 3 Year 2008.

Closed 31 May 2011


ASSESSEMENT REPORT



Action Time Limit


Date

2011.06 2.1.2 The company has not evaluated applicable regulations.


The company must evaluate compliance with applicable regulations.

Stage 2 The company has conducted a thorough adjustment to the regulatory changes as many as 97 regulations but they are still in the evaluation process of the distribution, the evaluation process of the material in the regulations has not been done.

Open, Minor category

2011.07 2.1.3. There are no enough evidence stated that the company has a good documentation system.


The company must establish an easy and fast documentation system.

Stage 2 The company has a documentation system containing information and legal requirements that must be complied with through document register system based on the RSPO principles and criteria.

Closed 31 May 2011

2011.08 2.2.2 There is no sufficient evidence that HGU Boundaries Pole maintenance plan has been compiled. During the field visits, the condition of HGU boundaries pole in B 013/B28 (old) was that the numbering was no longer identified; and the condition of HGU pole of 0 point (Pole 0) in Division IV RTE, Block E 28 was that the pole was covered by shrubs and tilted but the pole identity was still readable.

NC RSPO Secretariat RTE, Block B 013 and Block E 28

The company must prepare maintenance plans of HGU boundaries pole and realize the maintenance in accordance with those plans.

Stage 2 The company has set HGU Pole maintenance plans of Year 2011/2012 for each Estate. The Company has performed the identification of HGU Pole in the field; - Betung Estate; it was conducted on 9 to 12 May 2011 with the following results: there were 167 missing poles out of the total number of 175 HGU Poles, the rest were still available but they needed repairs. - Rantau Estate; it was conducted

Closed 1 June 2011


ASSESSEMENT REPORT



Action Time Limit


Date

on 11 to 12 May 2011 with the following results: there were 43 missing poles out of the total number of 67 HGU poles; the rest needed repairs and cleaning. - Matalok Estate; it was conducted on 14 May 2011 with following results: there were 105 missing poles out of the total number of 118 poles; the rest needed repairs and cleaning. - Sekayu Estate; it was conducted in May 2011 with the following results: there were 107 missing poles out of the total number of 147 poles; the rest needed repairs and cleaning. Repeated measurements have been made to the presence of HGU poles (Large Poles) on 6 June 2011 with the following results; - Betung Estate; The numbers of HGU Large Poles stated in the Poles Book document was 40 Poles, 25 poles were still in the field and 15 poles were missing. - Rantau Estate; The numbers of HGU Large Poles stated in the Poles Book document was 25


ASSESSEMENT REPORT



Action Time Limit


Date

Poles, 20 poles were still in the field and 5 poles were missing. - Matalok Estate; The numbers of HGU Large Poles stated in the Poles Book document was 22 Poles, all of them were still in the field. - Sekayu Estate; The numbers of HGU Large Poles stated in the Poles Book document was 31 Poles, 28 poles were still in the field and 3 poles were missing.

2011.09 4.1.2 The organization has SOPs of estate and mill

operational, starting from land clearing to

dispatch of CPO and PK; however, Palm Oil

Mill technical guidelines I-II has not been

endorsed by Minamas plantation.


The organization needs to endorse Palm Oil Mill technical guidelines I-II.

Stage 2 SOPs of mill operational are available which are listed in: Guidelines for Palm Oil Mill technical guidelines I and II of Minamas Plantation endorsed by Vengata Subramaniam, General Manager Mill Sungai Durian area of PT. Laguna Mandiri.

Closed 3 June 2011

2011.10 4.3.1 The organization has provided maps of

marginal land of Sekayu and Betung estate but

the maps for Matalok and Rantau Estate have

not been available.


The organization needs to provide maps of marginal land in the working area of Rantau and Matalok estate.

Stage 2 The maps of marginal land for Matalok Estate and Rantau Estate have not been available.


2011.11 4.6.4 5.3.2

The hazardous waste temporary storage room in the estate has not had license yet from relevant agencies. The company stores used pesticides packaging exceeded the maximum

NC Agrochemical Warehouse RTE

The organization needs to store hazardous waste in a location that already has license from relevant

Stage 2 SOP of Hazardous waste management regulates waste handling, including that used agrochemicals packaging will be



ASSESSEMENT REPORT



Action Time Limit


Date

retention time of 90 days.

agencies. The retention time of used pesticide packaging is in accordance with Government Regulation No. 18 Year 1999.

sent to collectors; However, until stage-2 there is no enough evidence that the hazardous waste has been sent to the collector. Based on visits to Sekayu estate, there is hazardous waste in form of used oil, used batteries and used pesticides packaging stored in locations without license (Hazardous waste storage room of Sekayu estate). The company already has a license but it is limited to the storage room located at Rantau Factory. September, 15 2011 The company has submitted issuance license letter for hazardous waste temporary storage to Head of Kotabaru regency (Augustus, 2 2011), which informed the scope and locations. There are five locations of storage. Auditor will verify the progress of license on surveillance.


ASSESSEMENT REPORT



Action Time Limit


Date

2011.12 4.6.6; 4.7.4

The medical screening programs for estate and mill employees are not in accordance with the procedure No. Policy 053/SAA-KBK/10 which regulates that implementation of the medical screening is at least once in 12 months.


The company needs to reassess the medical screening programs for estate and mill employees.

Stage 2 The organization has developed a 'medical screening schedule of mill and estate employees' so that it is in accordance with the procedure No. Policy 053/SAA-KBK/10. To support the implementation of routine medical screening, company doctors has proposed requests for for digital laboratory equipment, spirometry and audiometric to SGM (Senior General Manager) Region of South Kalimantan.

Closed 4 June 2011

2011.13 5.3.3 Hazardous waste handling mechanism (049/LMI-PLB/2010) arranged has not regulated final technical waste management. Related to the scope of hazardous waste storage license from Head of Kotabaru District No. 188.45/124/KUM/2011, types of waste can be stored are used oil, used batteries, used filters, used light bulbs and cotton waste (majun), however it does not incude used pesticides packaging.


The company should review the procedures for hazardous waste handling (049/LMI-PLB/2010) so that the procedures cover the final stages of hazardous waste management after it is stored at hazardous material storage room. The company needs to reassess hazardous waste storage license from the Head of Kotabaru District.

Stage 2 Hazardous waste produced both in estate and in mill will be sent to the collector in accordance with SOP of hazardous waste handling (049/LMI-PLB/2010), The scope of the license has not included used pesticide packaging. September, 15 2011 The company has submitted issuance license letter for hazardous waste temporary storage to Head of Kotabaru regency (Augustus, 2 2011), which informed the scope and locations. There are five locations of storage.



ASSESSEMENT REPORT



Action Time Limit


Date

Auditor will verify the progress of license on surveillance.

2011.14 4.5.2; 4.7.6; 4.8.1; 5.2.5

A program of employee training identification period of January - April 2011 RTE has been compiled in the form of 27 types of training, but there has not been enough evidence that the training has been implemented according to the schedule so that the effectiveness of the program needs to be evaluated. There is no enough evidence that IPM training and the training for assigned HCV officers have been carried out.


The company is advised to carry out training for assigned HCV and IPM officers.

Stage 2 Employee training programs have been reorganized in accordance with the needs of employees. Up to Stage-2, the organization has conducted training including training of HCV, first aid and IPM. HCV internal training was carried out to four appointed officers in May 2011.

Closed 1 June 2011

2011.15 4.7.8 Periodic monitoring of fire extinguishers in the estates has not been effectively carried out. Fire extinguisher that is not functioning properly is still found.

CFA Warehouse of RTE

Organizations should conduct periodic checks of fire extinguishers both in the estates and in the mill so that the feasibility and conditions can be ascertained.

Stage 2 There is a list of monitoring for fire extinguisher in each estate (Betung, matalok, rantau, Sekayu) and mill (Rantau Factory). Fire extinguisher equipment are distributed to all locations which are reachable if needed. The company has checked fire extinguisher eligibility and conditions.

Closed 4 June 2011

2011.16 4.7.9 First aid trainings have been conducted for the mill employees. However, for the officers of estates have not been involved yet.


The organization must conduct first aid trainings for estate employees.

Stage 2 Mill and estate employees have been involved in first aid trainings. The company can show evidence that first aid meeting was held on 4 May 2011 at Sekayu estate and it was attended by the foreman, harvest clerk officer, fruit specialist and general staffs.

Closed 3 June 2011


ASSESSEMENT REPORT



Action Time Limit


Date

2011.17 4.8.3 The company has not had procedures associated with the mechanism of recruitment of local contractors and has not evaluated the implementation of their work.


The company must establish procedures related to the mechanism of recruitment of local contractors and evaluate the implementation of their work.

Stage 2 The company has demonstrated a mechanism related to the procedure of recruitment of local contractors

Closed 5 June 2011

2011.18 5.2.4 The company has installed signboard in location of identified HCV. For example in Block C 008, D 15 and D 016. The socialization to all employees and the community have been conducted at the time of preparation of HCV Identification documents but posters / signboards on existence of protected species have not been installed in the area of HCV / other locations that are accessible to the public.

CFA RSPO Secretariat RTE, HCV Area of Sungai Pinang and HCV 1.3 in Sekayu Estate

The company are advised to disseminate the presence of protected flora and fauna in form of signboards, posters, publications, and other media to the public and employees.

Stage 2 The company has installed posters / signboards on presence of protected species, but the placement is not appropriate, board HCV 1.3 & 2.3 (secondary forest) BTE are not found in correct place (2 23' 35" S; 116 11' 07" E), but they are placed in oil palm estate (2 23' 24" S; 116 11' 36" E).

Open, CFA category

2011.19 6.1.1 There is no enough evidence of involvement of stakeholders in the preparation of management / monitoring plans of social impacts, in the annual plan document CSR programs planned are in the form of financial donation.


The company should involve stakeholders in the preparation of management / monitoring plans of social impacts.

Stage 2 The company has prepared the Management / Monitoring Plan of the results of analysis of social impacts in 2011 and has considered affected parties in developing the Social management plan. For example involvement of PT LMI in Musrenbang (Conference of development plans) of Sungai Durian District on February 16, 2011 as well as the meeting with Mangka village on April,4 2011.

Closed 5 June 2011


ASSESSEMENT REPORT



Action Time Limit


Date

2011.20 6.1.2 The company has not prepared the Management / Monitoring Plan of Social Impact Analysis results of PT LMI as recommended by the Foundation of Sustainable Oil Palm Indonesia (YASBI) in 2010


The company must prepare a document of management and monitoring plan of social impact as recommended in Social Impact Assessment.

Stage 2 The Company has prepared the Management / Monitoring Plan of the results of social impact analysis in 2011 but has not been able to explain comprehensively Management and Monitoring Plan of Social Impact in detail of the activities and budgeting.


2011.21 6.2.4 The company has appointed officers who are responsible for communication (PSD) for Sungai Durian area (Alfendi) but its position is still in Banjarmasin Office.


The company suggested to place officers who are responsible to conduct communication and consultation with communities (PSD) at the site for the working effectiveness and the social problems developing at this moment requires enough concentration.

Stage 2 The Company has appointed Kholili as a Relations Staff of Sungai Durian Area who is responsible to GM through Letter No. GM-Staff 430/SD/IV/2011/S dated 30 April 2011. The working area includes PT LMI, PT SAA and Lanting Estate (PT LMR). The Public Relations Staff task is to report directly to GM and coordinate with the Unit Manager and PSD Banjarmasin in resolutions of arising social issues.

Closed 1 June 2011

2011.22 6.3.1; 6.3.3

SOP of complaints handling for the management (009/LMI-MPKTP/2010) has not explained community involvement in the complaint handling process, although in the implementation the mechanism of community involvement (conference) in the settlement of complaints has been carried out.


The company is advised to review SOP of complaints handling involving the community in it.

Stage 2 The Company has revised its complaint handling mechanism for the management (009/LMI-MPKTP/2010) dated 16 December 2010 page 4, flow chart of stakeholders complaint handling.

Closed 3 June 2011


ASSESSEMENT REPORT



Action Time Limit


Date

2011.23 6.5.2 In Mutual Working Agreement with the contractor, it has been required regarding compliance with OHS, but it is not fully expressed on compliance with applicable labor regulations in general.


The company is advised to review Mutual Working Agreement (SPK) with the contractor by taking into account the applicable labor regulations.

Stage 2 The Company has revised its requirements within the Contractor Mutual Working Agreement but it was limited to the policy of OHS. the fulfillment of all labor regulations was not fully conducted yet.

Open. CFA category

2011.24 6.9.5 Gender Commission has not been formed so that the complaints handling mechanism in particular is not available.


The company should develop and disseminate gender Committee to all employees.

Stage 2 Gender Committee Complaint handling mechanisms are available (No. Policy; 700/PD-KG/10) which was endorsed on April 25, 2010.

Closed 1 June 2011

2011.25 6.11.1 Plan and realization documents of CSR Program are available, for example, plan and realization of CSR programs in 2010 but it was only limited to donation program of qurban animals.


The company is advised to set plans of CSR programs by taking into account community participation and documenting them properly.

Stage 2 a. CSR Program Plans are

available, for instance;

CSR Programs Plan of Rantau

Estate for activity year

2011/2012 (July 2011 to June

2012) with activities of teacher

education donation in Mangka,

Rantau Budha and Rantau, Rice

donation, Teachers assistance

of Mangka Village, Distribution

of Qurban Animal, Improvement

of Road access KM 12, bridge

and culvert repairs in Rantau

Budha village, Rantau Jaya and

Mangka. Total CSR program

Closed 1 June 2011


ASSESSEMENT REPORT



Action Time Limit


Date

(RTE) in fiscal year 2011/2012 is

of IDR 157,180,975.

b. Records of CSR programs are

available;

Records of CSR program of

Rantau Estate activity year

2010/2011 of IDR 199,376,347

are available, the submission

evidence is in form of cash

voucher or BAP handover eg

BAP No. 5711012010 dated 15

October 2010 is for payment of

the Periodic Fund & Honorarium

for Head of Rantau Jaya village

from April 2010 to September

2010 of IDR 3,600,000

2011.26 7.2.1 7.2.2 4.3.5 4.2.1

A detailed soil survey needs to be done in Matalok estate as a reference in performing the appropriate actions for the soil in accordance with physical, chemical and soil conditions including: soil analysis, soil fertility and slope.

NC D019 Matalok Estate

There is a new planting area of 108 ha (2008) at MLE in which detailed soil survey has not yet done.

Stage 2 There is a new planting area of

108 ha (2008) at MLE. In Matalok

Estate, a detailed soil survey has

been done on 9 May 2011 until 13

May 2011.

A detailed soil survey for the

Rantau Estate is planned by 2013.



ASSESSEMENT REPORT



Action Time Limit


Date

2011.27 7.3.1 Working Map documents of PT LMI based RT/RW Province of South Kalimantan are not available.


The company is advised to provide RTRWP Map of South Kalimantan.

Stage 2 The Document of Environmental Impact Assessment (EIA No. 660/22/BLHD.AMDAL dated 20 August 2010) stating that based on the Spatial Planning Map of Kotabaru District (RTRWK) in 2002 and the Provincial Spatial Plan (RTRWP) of South Kalimantan, PT LMI area is in the Food Crop Annual Cultivation Areas (KBTTP).

Closed 1 June 2011


ASSESSEMENT REPORT


3.2 Summary of Non-Conformances, Corrective Action and Observation on Stage-2

No CAR Indicator Non conformance Grade Location Requests for corrective

action Time Limit Observation and Date Status

Closed date

2011.28 2.1.1 Compliance with applicable legislation (Government Regulation. 18 Year 1999/ Government Regulation 85 year 1999). It is found that used oil, used filters and used pesticide packaging was stored exceeding the retention time of 90 days/180 days. Loading Hazardous waste to CV. Berkat Jaya Sukses was performed on 14 July 2010. Based on monitoring documents of used oil and batteries of Laguna Mandiri in May 2011, total used oil waste was of 12,931 liters from the estates and mills operations. The company has appointed CV Sumber Agung as the collector and transporter who has obtained license. In accordance with circular letter from the GM of Pamukan Sungai Durian, Loading hazardous waste loading would be made on the second week in June 2011.

Minor Rantau mill and Sekayu estate

The company must ensure that hazardous waste of the mills and estates were managed against the Government Regulation 18 Year 1999/ Government Regulation 85 Year 1999).

Surveillance 1

2011.29 2.2.2 Based on the results of public consultations and interviews with representatives of Betung and Sekayu Baru Village, there was still things not understood by the public about the existence of Land Use Rights (HGU) boundaries. The company has identified the existence of Land Use Rights poles in all of the estates with the results that there are only 17% Land Use Rights poles left in the field and the rest is missing. The Company already re-identified the existence of Land Use Rights poles (large poles) thoroughly

Minor Estates The company must review the plan and its implementation consistently The Land Use Rights (HGU) poles, which are the legal boundary of the work area.

Surveillance 1


ASSESSEMENT REPORT




Closed date

in all Estates on 6 June 2011 which was done by Assistant of Estates with the following results; - From the 118 pieces large poles in pole book documents, 95 pieces of which still existed in the field and 23 units was missing. - Physical conditions of existing poles: some of them were still in good condition and the identities were readable. The rest were damaged / the identities were not readable. - Small Land use rights (HGU) poles have not been re-identified to ascertain the condition and the existence.

2011.30 4.4.3 The company has been measuring of monitoring well water quality, waste wells and ponds inhabitants. However, based on the results of public consultation, there are complaints about surface water. The company has not made measurements of river water quality.

Minor Estates The company must conduct quality measurement to river water.

Surveillance 1

2011.31 4.6.7 Based on interviews with spray team of Betung estate Division III, it was found personal who is breastfeeding (23 months) work in spray team (water filler). The company has moved her to maintenance work (Non-chemist).

Minor Betung Estate

The company should review the mechanisms of protection of pregnant and lactating women so that they are not involved in jobs, which risk exposed to chemicals.

Surveillance 1

2011.32 5.2.5 The special task for HCV supervisor had been trained by internal organization, but the HCV instructors should be completed for their training evidence due to their competencies.


Surveillance 1


ASSESSEMENT REPORT




Closed date

2011.33 6.2.1 The communication procedure should be socialized intensively to stakeholder.

CFA Estates and Community

Surveillance 1

2011.34 6.3.2 There has not been enough evidence that the company has responded complaints by involving parties complaining (it is still limited to one party Head of Sekayu Baru Village) There is a demand from community of Sekayu Bare Village and Betung Village via Letter No. 004/KAD-Btg/IV/2011 or 002/AAD-Skb/IV/2011 dated 23 April 2011, For developing plasma scheme. The company has to conduct a resolution of the demand of Sekayu Baru Village and Betung Village communities by involving stakeholders in accordance with Mechanism of complaints resolution of management (009/LMI-MPKTP/2010) dated 16 December 2010 as a reference to handle complaints from stakeholders. Negotiation conducted is still limited to Head of Sekayu Baru Village, it has not involved Head of Betung Village, community leader of Betung and Sekayu Baru as the complaining parties.

Minor Estates The company shall complete the response for each complaint which had been received by stakeholders

Surveillance 1

2011.35 6.9.4 The company is suggested to provide socialization intensively regarding the protection for female policy.

CFA Estates Surveillance 1


ASSESSEMENT REPORT


3.3. Summary of Issues Arising from public, Organization and auditor responses.

No Public Issues The Companys Responses Auditors Responses

1 Deputy Head of Pamukan Utara Sub district

In general, the positive benefits of the company are felt by the public in the form of the opening of community access, economic growth in surrounding communities as well as donation to the village.

The company has contributed in local development in the form of opening job opportunities for the community and other partners.

Explained in 6.11.1

Local Government regulatory compliance associated with ID cards of employees from outside the area, Tax Payer Identification Number (TIN), Building Permit (IMB), HO License, EIA and waste management license. Local government has limited information on those public documents.

The company will submit written data to the local government.

The company is advised to be pro-active in coordination related to the transparency of company documents submission to government agencies at villages and subdistricts.

2 Representatives of Sungai Durian and Pamukan Utara Sub district

Working area boundaries of PT LMI (Land Use Rights) is not clear for the community.

Working area boundaries of PT LMI are in form of oil palm stakes and HGU poles made by National Land Agency. The making of boundaries pole has involved local government officials, but the administration of local government documents are not good enough. HGU poles that have been installed are destoyed by outsiders. The company realizes the lack of socialization / communication with the community. For the future identity board making and maintenance of HGU poles periodically are planned.

Explained in indicator 2.2.2.


ASSESSEMENT REPORT



3 Representatives of Bepara Village and Local community of Pamukan Utara

The transparency of information in form of employees recruitment, scholarship, and CSR program needs to be improved.

The socialization of scholarship and CSR program has been implemented to the village heads to be conveyed to the public. The mechanisms are planned to be done in written. Scholarship programs are awarded after going through tests and interviews. The failure of the realization of scholarships for prospective scholarship recipients is because they do not meet the standards issued by the institution / university.

The company has planned CSR Programs Year 2011/2012 in the form of educational assistance, road improvements, provision of Qurban animal and welfare assistance in Mangka, Rantau and Rantau Buddha village.

4 Tribe Head of Pamukan Utara

Public demands on the company's obligation to provide plasma of 20% of the nucleus area.

The company is implementing a process of plasma formation, but it is constrained that lands owned by communities are fragmented, so that it causes high production costs. The company will continue to disseminate to the community. Associated with the regulation concerning the obligation to build 20% plasma, the company is still conducting the discussion and comprehension with the authorities.

Explained in 6.1.5.

5 Local Representatives Board (BPD) of Bakau Village, Community leaders of Batu, Betung and Sungai Durian Village.

Equitable distribution of company management benefits for the entire village.

The company has limitations and mechanisms in performing equitable distribution of benefits to surrounding communities.


ASSESSEMENT REPORT



6 Community leaders of Sungai Durian

Minimization of negative impacts on river water as a source of water for the residents.

The company has sought to minimize negative impacts on the environment by not disposing liquid waste into rivers and allocating riparian area for HCV. All liquid waste is applied to estates.

Explained in indicator 5.3.2 The company does not dispose mill liquid waste to water bodies (rivers and sea). Land application license in the estates are available.

7 Residents of Sungai Durian Sub district

The opportunity for the community to sell FFB to the companys POM. The company has accommodated by the plan of plasma formation.

Explained in 6.1.5

8 Plantation Agency of Kotabaru

The company has made and submitted plantation progress reports regularly but not in a timely manner. The company should be more sensitive to any problem that exists in the surrounding communities.

The company has submitted plantation progress reports periodically every semester, including the receipt of the report.

Programs to be implemented by the company should be adjusted to the basic needs of local communities.

9 Environmental Agency The company has made and submitted the reports of Environmental Management Plan/Environmental Monitoring Plan (RKL/RPL) implementation regularly but not in a timely manner.

The company has submitted the reports of Environmental Management Plan/Environmental Monitoring Plan (RKL/RPL) periodically every semester, including the receipt of the report.

Reports submission mechanisms must be more timely.


ASSESSEMENT REPORT



10 National Land Agency of Kotabaru There has been no violation related to HGU In National Land Agency, there is a division related to CSR, the company is advised to cooperate with National Land Agency in the division.

The company manages the plantation land in accordance with Land Use Rights issued by the government. There are 10 Land Use Rights (HGU) certificates, where the validity period will be expired in year 2032 and 2039.

It is recommended that the company always communicates and coordinates with the parties (stakeholders).

11 Forestry Agency Forestry Agency has never invited in Public Consultation related to HCV assessment.

The parties coordinating related to public consultations of HCV are the consultants.

It is recommended that the company is more pro-active in coordinating with relevant agencies and other stakeholders, especially in the management of the areas that have been designated as areas containing High Conservation Value.


ASSESSEMENT REPORT


4.0 ACKNOWLEGMENT OF CERTIFIED ORGANIZATION AS AN INTERNAL RESPONSIBILITY

4.1 Authorized Signature of assessments findings

Here formal signed is management representative of the Audited company recognized the assessment findings and agree on the entire contents of this report, including of Non-conformance.

Signed on behalf of,

Head of PSQM

Lead Auditor

MINAMAS Plantation

Mutuagung Lestari

Mohamad Pirabaharan

Nanang Mualib

September, 15 2011


ASSESSEMENT REPORT


Annex 1. Checklist of RSPO Certification Assessment Results

RSPO

Ref. RESULTS OF MUTU-Certification VERIFICATION Status

PRINCIPLE #1 COMMITMENT TO TRANSPARENCY

1.1 Oil palm growers and millers provide adequate information to other stakeholders on

environmental, social and legal issues relevant to RSPO Criteria, in appropriate languages &

forms to allow for effective participation in decision-making.

1.1.1 Records of Information Requests.

ST1 PT Laguna Mandiri has provided facilities to collect information from stakeholder in a form of letter

correspondence (based on SOP 012/RSPO-LMI/2010) that information request is delivered in inscription

to the Operational Unit Manager. The answers draft would be made by section head/KTU; and the answer

of information request would be sent after it is signed by Operational Unit Manager or by Head

Department if necessary.

Available complaint handling SOP can be also submitted throughout the suggestion box installed in front

of the Estate office (such as; Matalok Estate) until ST 1 implementation where 2 suggestion letters have

been submitted.

ST2 Same with stage-1.

1.1.2 Records of Responses to Information Requests.

ST1 Communication Procedures SOP is available (028/LMI-PK/2010) dated 16 December 2010 however

until the implementation of Stage 1 there has not been any submissions in accordance with the

incoming mail. For example: Letter from Rantau Buda elementary School 2 Number

421.2/56-SD/RB/Disdik/2010 dated 24 November 2010 concerning aid proposal followed by Rantau

Estate Manager Letter to ad interim General Manager of Sungai Durian Estate Area Number 4 January

2011. Then followed up with ad interim Sungai Durian Estate General Manager to PSD Banjarbaru

General Manager Number GM-psd/328/SD/II/2011/M dated 14 February 2011, there has been no

answers from GM of PSD to the letter.

Non-conformance in this indicator is CFA-2011.01

X

ST2 It is same with stage-1. The company has owned records of information request response. The company

has conducted submission in information request log on Letter from rantau budha elementary school

Number 421.2/56-SD/RB/Disdik/2010 concerning aid request.

Non-conformance CFA-2011.01 is confirmed closed.

1.1.3 The records mentioned in 1 and 2 must be maintained for a period of time determined by the

company, taking into account their relative importance.

ST1 The document storage period has not been arranged in record control SOP (051/LMI-PC/2010) based on

its importance.

Non-conformance in this indicator is CFA.2011.02

X

ST2 In revision I, record management SOP (SOP No. 051/LMI-PC/2010), the company has determined the

document storage period based on its type and importance.


ASSESSEMENT REPORT


Non-conformance status CFA-2011.02 is confirmed closed.

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.

1.2.1 Information and responses must include any relevant or required documentation, in accordance

with applicable national laws, such as:

ST1 Company documents are available such as;

- Company Legal Document, such as; Plantation Business License (IUP), Land use Right, EIA

(AMDAL), Environmental management Plan/Environmental Monitoring Plan (RKL/RPL)

- Environmental Document such as; Environmental Management Plan/Environmental Monitoring

Plan report, High Conservation Value identification report

- Estate Management Document, such as; Monthly Manager Report

- Social Document, for example; analysis report of PT Laguna Mandiri oil palm plantation

- Standard Operating Procedure (SOP)

Current regulation list is available but not the entire regulations concerning available plantation

management for example, The Minister of Agriculture regulation Number 26/Permentan/OT.140/2/2007

concerning licensing guidelines for plantation.

Non-conformance in this indicator is CFA-2011.03

X

ST2 Regulation list along with physical evidence, which is written on the list, The Minister of Agriculture Decree

Number 26/Permentan/OT.140/2/2007 on Plantation Business License Guidelines, is available at Rantau

Estate RSPO secretariat.

The company document has been available includes;

1. Legal Document;

a. Reserve license was issued by Head of Provincial Governor of South Kalimantan by

Decree Number SK 06/PL.84/1989/BPN-43 dated 31 May 1989 concerning reserve

license in Kotabaru district for various plantation crops managed by PT Laguna Mandiri.

b. Forest area acquisition was issued by the Minister of Forestry 07/Kpts-II/1995 dated 5

January 1995 on the acquisition of some forest area from Sungai Cengal forest cluster and

around the area located in Kotabaru district, South Kalimantan province covering 16,852

ha for rubber and oil palm plantation on behalf of PT Laguna Mandiri.

c. Location License;

1. Issued by the Head of Kotabaru District Number 003 year 2000 dated 29 January

2000 concerning Land Location License Permit for the sake of oil palm plantation

construction with an area of 150 ha located in Sekayu Baru and Bepara village,

Pamukan Utara district on behalf of PT Laguna Mandiri.

2. Issued by Kotabaru Head of District Number 019 year 2000 dated 14 October 2000

concerning Land Location Licensing for the sake of oil palm plantation construction

and 204 ha shortcuts located in Bakau and Bepara village, Pamukan Utara district on

behalf of PT Laguna Mandiri.

d. Plantation Operation License:

1. Plantation Operation Registration Letter Number 462/Menhutbun-VII/2000 dated 25

April 2000 with 14,950 ha of area and palm oil mill capacity with 60 tones maximum

fresh fruit bunch per hour issued by The Minister of Forestry and Plantation.

2. Kotabaru Head of District Decree Number 188.45/390/KUM/2009 dated 15 October


ASSESSEMENT REPORT


2009 concerning PT Laguna Mandiris Approval of Plantation Operation Licensing

Re-registration. The area covers 15,300 ha and the fresh fruit bunch capacity is 60

tones per hour. The valid license period is 10 years or if an area / factory, expansion

occurred.

e. Land Use Right License;

1. Land Use Right (HGU) Certificate Number 13 year 1997 dated 22 November 1997

based on The Minister of Agrarian Letter/ Head of BPN Number 138/HGU/1997 dated

31 October 1997 with an area of 149,500,000 m2, which is valid until 22 November

2032.

2. Land Use Right (HGU) certificate Number 46 year 2004 with 59, 10 ha which is valid

until 20 April 2039.

3. Land Use Right (HGU) certificate Number 47 year 2004 dated 2 April 2004 with 115.40

ha area, which is valid until 20 April 2039.



5. Land Use Right (HGU) certificate Number 49 year 2004 dated 2 April 2004 with 4 ha

area, which is valid until 20 April 2039.

6. Land Use Right (HGU) certificate Number 50 year 2004 dated 2 April 2004 with12.26






9. Land Use Right (HGU) certificate Number 53 year 2004 dated 2 April 2004 with 9.58 ha

area, which is valid until 20 April 2039.



f. Building permit, Oil Palm Processing Mill Number 503.2/089/IMB-KPPT/2010 dated 18

January 2010 issued by Kotabaru Head of District on the Land Use Right certificate

Number 13 dated 1 December 1997.

g. Distraction License (Hinder Ordonantie/HO) issued by Kotabaru Head of District by Letter

Number 503.5/1559/HO-KPPT/2009 dated 31 December 2009.

2. Environmental Document.

a. EIA Document;

- Rantau Palm Oil Mill; impact analysis documents are available in forms of

Environmental Impact Assessment (EIA), Environmental Management Plan, and

Environmental Monitoring Plan, Oil Palm Plantation, and Palm Oil Mill in Pamukan

Utara sub district, Pamukan Selatan and Sungai Durian village, Kotabaru District,

South Kalimantan Province, written in 1995. This document has been approved by

Agribusiness Organization, Agriculture Department Number 008/ANDAL/BA/II/95,

dated 27 February 1995. The study covers PT Laguna Mandiri (21,400 ha), PT

Langgeng Muara Makmur (21,840) ha), PT Paripurna Swakarsa (22,800 ha) and PT

Swadaya Andika (11,250 ha).

- Betung POM; approved by Appraiser Commission and Technical Team

AMDAL/UKL-UPL Kotabaru district by EIA Approval Letter Number

660/22/BLHD-AMDAL dated 20 August 2010 written by The Faculty of Forestry,


ASSESSEMENT REPORT


Lambung Mangkurat University, South Kalimantan.

b. HCV Identification Document;

PT Laguna Mandiris HCV Final Assessment Report designed by Sustainable Oil Palm

Foundation Indonesia/Yayasan Kelapa Sawit Berkelanjutan Indonesia (YASBI) in

December 2009.

c. Wastewater Disposal License issued by Head of Kotabaru District Decree Number

188.45/413/KUM/2009 dated 26 August 2009. It concerning wastewater Utilization and

Disposal license extension on PT Laguna Mandiris plantation land area in Pamukan Utara

and Sungai Durian sub district, Kotabaru, South Kalimantan with a 2-year validity period

until 26 August 2011.

d. Temporary hazardous material Waste Storage License in accordance with Kotabaru Head

of District Decree Number 188.45/124/Kum/2011 dated 8 March 2011 concerning

Dangerous and Poisonous Waste Temporary Storage to PT Laguna Mandiri in Bepara

village, Pamukan Utara sub district, Kotabaru district, South Kalimantan.

e. Pesticide Utilization and Storage License based on The Decree of Kotabaru Districts

Head of Social, Labor and Transmigration Service Number 150/Pesticide/Disosnakertrans

dated 7 March 2011 on Pesticide Utilization and Storage at Laguna Mandiri Matalok Estate

Company, 1-year validity since the decree was issued.

f. Pesticide Utilization and Storage License based on The Decree of Kotabaru Districts

Head of Social, Labor and Transmigration Service Number 039/Pestisida/Disosnakertrans

dated 19 March 2011 on Pesticide Utilization and Storage at Laguna Betung Estate

Company.

g. Pesticide Utilization and Storage License based on The Decree of Kotabaru District Head

of Social, Labor and Transmigration Service Number 050/Pestisida/Disosnakertrans dated

7 March 2011 on Pesticide Utilization and Storage at Laguna Mandiri Rantau Estate

Company, 1-year validity since the decree was issued.

h. Pesticide Utilization and Storage License based on The Decree of Kotabaru Districts

Head of Social, Labor and Transmigration Service Number 150/Pestisida/Disosnakertrans

dated 7 March 2011 on Pesticide Utilization and Storage at Laguna Mandiri Matalok and

Sekayu Estate, 1-year validity period since the decree was issued.

3. Social Document;

a. Social Impact Assessment; Social Impact Analysis report prepared in January 2010.

b. SIA Management Plan and Monitoring Plan; 2011 Management/Monitoring plan has been

prepared.

4. Occupational Health and Safety Program Documentation

a. Advisory Committee of Occupational Health and Safety is available;

- Head of Social, Labor and Transmigration Service Kotabaru District Number

Kep-045/P2K3/Disosnakertrans dated 5 June 2009.

- Sekayu Estate, Head of Social, Labor and Transmigration Service Kotabaru District

Number Kep-062/P2K3/Disosnakertrans dated 29 March 2009.

- Head of Social, Labor and Transmigration Service Kotabaru District Number

Kep-052/P2K3/Disosnakertrans dated 27 March 2009.

- Rantau POM, Head of Social, Labor and Transmigration Service Kotabaru District Number

Kep-065/P2K3/Disosnakertrans dated 21 July 2009.

- Rantau Estate; Head of Social, Labor and Transmigration Service Kotabaru District

Number Kep-045/P2K3/Disosnakertrans dated 31 August 2009.


ASSESSEMENT REPORT


b. Advisory committee of Occupational Health and Safety Periodic Report such as;

- Matalok Estate; First Quarter Report year 2011 through Letter Number 153/P2K3/04/2011

dated 22 April 2011 received by Social, Labor and Transmigration Service of Kotabaru on

- Sekayu Estate; Fourth Quarter Report year 2010 through Letter Number 003/P2PK3/1/2010

dated 22 January 2011 received by Social, Labor and Transmigration Service of Kotabaru

- Betung Estate; First Quarter Report 2011 through Letter 007/P2K3/04/2011 dated 25 April

2011 received by Social, Labor and Transmigration Service of Kotabaru on 5 May 2011.

- Rantau Estate; Fourth Quarter Report year 2010 through Letter Number

RTE-DisnakerKTB/286/III/2011/s dated 17 February 2011 received by Social, Labor and

Transmigration Service of Kotabaru on 17 February 2011

- POM; First Quarter Report year 2010 through Letter Number 04/LMI-RTF/K3/2011 dated 07

May 2011 received by Social, Labor and Transmigration Service of Kotabaru on 10 May

2011.

5. Other Documentations;

a. PT Laguna Mandiris Tax Payer Identification Number; 01.342.201.9.073.000 issued by

Ministry of Finance.

b. Registered Certificate Letter Number PEM.00029/WP J 06/KP1203/2011 dated 28

January 2011 issued by Central Jakarta Tax Service Office.

c. Taxable Entrepreneur Inaugural Letter Number PEM-00030/WP J 06/KP 1203/2011 dated

28 January 2011 issued by Central Jakarta Tax Service Office.

d. Great Business License Letter (SIUP); Number 2753/P1/09-04/PB/XI/2001 dated 28

November 2002 issued by Ministry of Industry and Commerce of DKI Jakarta provincial

office.

e. Permanent Business License Number 200/T/Agriculture/Industry/2005 dated 15 March

2005 issued by Investment Coordination Office (BKPM) on behalf of The Minister of

Agriculture and The Minister of Industry.

f. Machinery License;

- Steam Turbine; Issued by Social, Labor and Transmigration Service of Kotabaru

through License Certificate Number 003/TU-KK/III/2006 dated 27 March 2006. The

last assessment conducted on 18 July 2010

- Boiler Approval Certificate; issued by Social, Labor and Transmigration Service of

Kotabaru district through License Certificate Number PK.19/E.263 dated 20 October

2010. Last assessment conducted annually.

- Boiler I ; Issued by daily implementer Head of Social, Labor and Transmigration

Service of Kotabaru district through License Certificate Number PK.19/E.0047 dated 6

September 2001. Assessment is conducted annually, the last assessment was

conducted on 18 July 2010

- Boiler II ; Issued by daily implementer Head of Social, Labor and Transmigration

Service Social, Labor and Transmigration Service of Kotabaru district through License

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