[ ]stage 1 [ ]stage2 - rspo...2011/07/14 · 1.2.7 web page address 1.2.8 company status private...

PT MUTUAGUNG

LESTARI

ASSESSMENT REPORT

Roundtable on Sustainable Palm Oil Certification

[ ]Stage 1 [ ]Stage2 [√]Surveillance

Plantation Management/Owner : MINAMAS Plantation – SIME DARBY Group

Plantation Name : PT Bersama Sejahtera Sakti (Gunung Aru POM, Gunung Aru Estate, Gunung Kemasan Estate, Laut Timur Estate and Pantai Timur Estate)

Location : Betung Village, Sub District of Pulau Laut Timur, District of Kotabaru, Province of Kalimantan Selatan.

Certificate Code : MUTU-RSPO/003

Date of certificate issue : July 14, 2011

Date of expiry of certificate : July 14, 2016

Assessment Assessment

Date

Report Finalization

Date

PT. Mutuagung Lestari Auditor

Checked by

Approved by

S1 March18-23,

2012 May 30, 2012

OCTO HPN NAINGGOLAN IBNU SATRIA PRABUDI OKTOVIANUS RUSMIN RUDI RAMDANI

RENY RUSTINIANINGSIH

TAUFIK MARGANI

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

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

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

MUTU Certification • Approved by RSPO Secretariat on June 2008

Submitted to RSPO on:

Approved by RSPO on:

Approved by Certification Body on:

PT MUTUAGUNG

LESTARI

ASSESSMENT REPORT

SPO – 4006a.4 i Prepared by Mutuagung Lestari for

TABLE OF CONTENT

FIGURE

Figure 1. Location Map of ....................................................................................................................... Figure 2. Operational Map of ..................................................................................................................

1 2

1.0 SCOPE of the CERTIFICATION 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 ................................................................................... 3

1.5 Description of Supply Base ..................................................................................................................... 4

1.6 Dates of Plantings and Cycles ................................................................................................................ 5

1.7 Approximate Tonnage Certified ............................................................................................................... 6

1.8 Other Certifications ................................................................................................................................. 6

1.9 Time Bound Plan for Other Management Units ...................................................................................... 6

2.0 ASSESSMENT PROCESS

2.1 Certification Body .................................................................................................................................... 7

2.2 Lead Assessor and Assessment Team .................................................................................................... 7

2.3 Assessment Methodology, Assessment Process and Locations of Assessment ................................... 7

2.4 Stakeholder Consultation and List of Stakeholder Contacted ................................................................ 8

2.5 Determine Next Visit ................................................................................................................................ 9

3.0 ASSESSMENT RESULT

3.1 3.2

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

10 30

3.3 Conformity Checklist of Certificate and Logo Use ………………………………………………………....... 34

3.4 Summary of Time Bound Plan Verification of the RSPO Certification ..................................................... 35

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

36

3.6 Summary of Arising Issues from Public, Management and Auditor Responses ..................................... 44

4.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Sign-off of Assessment Findings ................................................................................................. 49

APPENDICES

1. Peer Review Report ............................................................................................................................... 50

2. Result of RSPO Committee - RSPO Certification ................................................................................... 51

3. List of Stakeholder Contacted in the RSPO Certification Process ......................................................... 52

4. Assessment Plan .................................................................................................................................... 53

5 Glossary ................................................................................................................................................. 55

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.4 Page 1 Prepared by Mutuagung Lestari for Bersama Sejahtera Sakti

Figure 1. Location Map of PT Bersama Sejahtera Sakti


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Figure 2. Operational Map of PT Bersama Sejahtera Sakti


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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 Supply Chain Requirement for CPO Mill, 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 The Plaza Office Tower Lt. 36

Jl MH 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 Web page address www.simedarby.com

1.2.8 Company status Private

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 September 8, 2004

1.3 Type of Assessment

1.3.1 Scope of Assessment Palm oil Mill and Estate

1.3.2 Type of certificate Single

1.3.3 Company names listed in the certificate PT.Bersama Sejahtera Sakti

1.3.4

Number of management unit

1 (one) unit of Palm Oil Mill (Gunung Aru POM) which

receives FFB supply from 4 (Four) unit estates: they

are, Gunung Aru Estate (GAE), Gunung Kemasan

Estate (GKE), Laut Timur Estate (LTE) and Pantai

Timur Estate (PTE).

1.4 Locations of Plantations, Mill and Area Statement

1.4.1 Location of estate

Name of Estate(s) Location

GPS

Latitude Longitude

Gunung Aru Village of Betung, Sub District of Pulau Laut Timur, District of Kotabaru, Province of South Kalimantan

3° 30' 13"- 3° 38' 6" LS 116° 09' 48" –

116° 15' 39"BT

Gunung Kemasan Sub District of Pulau Laut Timur, District of Kotabaru, Province of South Kalimantan

3° 30' 13"- 3° 38' 6" LS

116° 09' 48" – 116° 15' 39" BT

Laut Timur Sub District of Pulau Laut Timur, District of Kotabaru, Province of South Kalimantan

3° 30' 13"- 3° 38' 6" LS

116° 09' 48" – 116° 15' 39" BT

mailto:[email protected]

http://www.simedarby.com/


ASSESSMENT REPORT


Pantai Timur Sub District of Pulau Laut Timur, District of Kotabaru, Province of South Kalimantan

3° 30' 13"- 3° 38' 6" LS

116° 09' 48" – 116° 15' 39" BT

1.4.2 Location of Mill

Name of Mill Location

GPS

Latitude Longitude

Gunung Aru POM Village of Betung, Sub District of Pulau Laut Timur, District of Kotabaru, Province of South Kalimantan

3° 30' 13,178" 116° 09' 46,728"

1.4.3 Maps ( Figure 1 & Figure 2 )

1.4.4 Country Indonesia

1.4.5 Region South East Asia

1.4.6 Tenure Village of Betung, Sub District of Pulau Laut Timur, District of Kotabaru, Province of South Kalimantan

Private - Ha

State 13,775.33 Ha

Community - Ha

1.4.7 Area Statement

Total area 13,775.33 Ha

Mature area 12,086.09 Ha

Immature area 270.55 Ha

Replanting area 324.99 Ha

Nursery 20.24 Ha

Mill 32.91 Ha

Infrastructure 110.68 Ha

Road and Bridge 466.99 Ha

Occupation 47.72 Ha

Enclave 11.71 Ha

Others 403.45 Ha

HCV 553.12 Ha

1.5 Description of Supply Base

1.5.1 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)

%

Gunung Aru 3,233 2,960 45,700.73 15,438 45,700.73 100

Gunung Kemasan 3,726 3,359 50,099.35 14,913 50,099.35 100

Laut Timur 3,478.28 3,268 65,743.07 20,115 65,743.07 100

Pantai Timur 3,338.05 3,093 61,743.22 19,959 61,743.22 100

Total 13,775.33 12,682 223,286.37 17,607 223,286.37 100

*Production Data, March 2011 – February 2012


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1.5.2 Smallholder(s) and others

Smallholder(s)

Scheme Member(s) Location

Total Area (Ha)

FFB (tonnes/year)

Supplied to Mill

FFB (tonnes/year)

%

N/A N/A N/A N/A N/A N/A N/A


1.5.3 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 (%)

Gunung Aru Mill 40 223,286.37 50,909.24 22.8 10,941.03 4.9 - -


1.5.4 Product categories FFB/CPO/PK/PKO

1.6 Dates of Plantings and Cycles

1.6.1 Age profile of planted palms*

Planting Year Hectarage (Ha) Age (year)

1986 325 26

1987 830 25

1988 247 24

1989 719 23

1990 1,160 22

1991 1,167 21

1992 823 20

1993 315 19

1994 945 18

1995 735 17

1996 2,360 16

1997 318 15

1998 442 14

1999 286 13

2000 379 12

2003 178 9

2005 274 7

2006 453 6

2007 427 5

2010 299 2

Total 12,682

1.6.2 New planting area after November 2005 1,179 Ha

1.6.3 Planting Cycle (1st cycle) 25 Years


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1.7 Approximate Tonnage Certified

1.7.1 Past Annual Claim Certified Product

FFB Production 216,429 Tonnes/year

CPO Production 51,520 Tonnes/year

Palm Kernel (PK) Production 10,209 Tonnes/year

Palm Kernel Oil (PKO) Production - Tonnes/year

1.7.2 Claim Certified Tonage of FFB

Name of Estate(s) Total Area

(Ha) Planted Area

(Ha) FFB

(tonnes/year) Yield

(tonnes/ha/year)

Gunung Aru 3,233 2,635.33 47,345,96 17.97

Gunung Kemasan 3,726 3,359.40 51,902,93 15.45

Laut Timur 3,478.28 3,268.41 68,109,82 20.84

Pantai Timur 3,338.05 3,093.50 63,965,98 20.68

Total 13,775.33 12,356.64 231,324.69 18.72

1.7.3 Claim Certified Tonage 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 (%)

Gunung Aru Mill 40 231,324.69 52,742.03 22.8 11,334.91 4.9 - -

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

Time Bound Plan MINAMAS Plantation – SIME DARBY Group, status as per December 2011

MINAMAS Plantation – SIME DARBY Group has committed to make time bound plan for other units under the

management in implementing P&C standard or acquiring RSPO certificate. Auditor team has considered the plan in

accordance with RSPO Certification System documents - June 2007 for partial certification. Progress and follow-up of

this plan will be verified and reported in the annual routine visit.

Certification Status Number of Strategic Operating Units

(SOUs)

Remark/Details

Malaysia Indonesia

Certified 33 15 Certified until May 2012

EB Review 6 5 It has been reviewed by Executive Board RSPO

Audited 0 5 3rd party audit or external audit completed on July 2011.

Total SOUs 39 22


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2.0 ASSESSMENT PROCESS

2.1 Certification Body

PT Mutuagung Lestari

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

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

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

2.2 Lead Assessor and Assessment Team

2.2.1 Assessment Team

S1 1. Oktovianus Rusmin (Lead Assessor 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. 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.

2. Octo H.P.N Nainggolan (Lead Assessor). A bachelor of Agriculture, Department of Social Economics of Agriculture (Agribusiness). He has working experience more than six years as an operational staff in a private oil palm plantation company in Indonesia. Trainings attended: Training of Conservation of Natural and Biological Resources in supporting HCV, Basic Plantation Management Program, Integrated Pest Management training, Management System Certification (ISO 9001-2008) training, RSPO Lead auditor training, ISPO lead auditor training and he have followed several audit activities related to certification system of sustainable oil palm plantation as an auditor. Currently, he works in an independent certification agency as an auditor. In the assessment activity, he conducted assessment on Waste Management, Implementation of OHS, FFB Processing, water management, pollution and Emission management, legality and supply chain requirement for CPO Mill.

3. Ibnu Satria Prabudi (Assessor). A Bachelor of Agriculture Majoring in Agro-technology, Agriculture Faculty of Instiper Yogyakarta. Currently he has been working with an independent certification agency as auditor. Training he

has followed are: Lead Auditor RSPO, Auditor ISPO, Awareness HACCP certification, Awareness SQMS Mc Donald, In House Training Green House Gas and Awareness ISO: 9001. He has followed several audit activities related to certification system of sustainable palm oil (RSPO certification) as observer and Auditor. He has been working with an independent certification body as auditor. In this Surveillance-1 activity he assessed best agronomic practices and social.

4. Rudi Ramdani (Observer). Bachelor of Agriculture Majoring in Agronomy, Agriculture Faculty of Bogor Agriculture

Institute. He has working experienced. He has working experience more than two years as an operational staff in a private oil palm plantation company in Indonesia. Several training he has followed namely: Indonesian Sustainable Palm Oil auditor, Management System Certification (ISO 9001-2008) training. In this assessment activity he observes on best practices aspect.

2.3 Assessment Methodology, Assessment Process and Locations of Assessment

2.3.1 Assessment Dates

S1 March 18-23, 2012

2.3.2 Estimate of person days to implement assessment

S1 Number of auditors : 3 persons Number of days for assessment at site : 4 days Number of working days for assessment at site : 12 Days

2.3.3 Detail process of assessment

http://www.mutucertification.com/


ASSESSMENT REPORT


S1 The assessment was conducted by measuring the sufficiency of implementation with the consistency done by the Bersama Sejahtera Sakti (BSS) 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 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 check, aiming to observe directly the sufficiency of implementation on site. All information obtained was recorded in Check List of PT Mutuagung Lestari (MUTU) and became the main annex of Assessment Report. The detailed assessment process pleased see Appendix 4

2.3.4 Locations of Assessment

S1 1. Location 1, Gunung Aru Palm Oil Mill. Observes the FFB processing and OHS implementation, hazardous and hazardous waste warehouse.

2. Location 2, Waste Water Treatment Plant. Observes the land application and waste water processing. 3. Location 3, HGU pole No.16 at block KK47 and pole No.61 at block JJ47, Pantai Timur estate. Observes

related to land use right pole maintenance. 4. Location 4, Hazardous waste warehouse at Laut Timur estate. Observes and interview with warehouse

officer related hazardous waste management. 5. Location 5, Chemical warehouse at Laut Timur estate. Observes and interview with warehouse officer related

to material safety implementation. 6. Location 6, Workshop and Diesel fuel tank at Laut Timur estate. Observes related to OHS implementation

and contamination management. 7. Location 7. Replanting at block C3 and D3 at Gunung Aru estate. Observes related to replanting method and

zero burning implementation. 8. Location 8, Fire Brigade and emergency response team at Laut Timur estate. Observes and interview with

firefighting officer related to preparedness of emergency response equipment. 9. Location 9. Bukit Kemasan HCV area at block D36 and D40, Gunung Aru estate. Observes and interview

with HCV officer regarding HCV 1.1 management and monitoring. 10. Location 10. Sungai Batak HCV area at block HH47, Pantai Timur estate. Observes and interview with HCV

officer regarding HCV 4 (riparian and buffer zone) management and monitoring. 11. Location 11. Sajakah village at Laut Timur estate. Interview with village peoples of Sajakah village related to

company social responsibility, work opportunity to village community, communication mechanism and customary rights.

12. Location 12. Tanjung Pengharapan village at Pantai Timur estate. Interview with village peoples of Tanjung Pengharapan village related to company social responsibility, work opportunity to village community, communication mechanism and customary rights.

2.4 Stakeholder Consultation and List of Stakeholders Contacted

2.4.1 Summary of stakeholder consultation process.

There were 10 parties contacted to give information inputs.

Stakeholder public consultation for PT BSS was done in three 3 methods: 1. Public announcement in the RSPO website 30 days before the annual surveillance assessment conducted.

2. Sending invitation letters for comments and Response Form of Stakeholder Public Consultation via postal mail and e-

mails to the stakeholders.

3. The public consultation meeting with stakeholders was performed on March 19, 2012 the team auditor was conducted

Meeting with the government agencies in the District of Tanah Bumbu. From the results of the consultation public

meetings verbal feedback from stakeholders was received and then the assessor team verified the feedback to the

company.

2.4.2 List of stakeholder contacted

See Aappendix 3


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2.5 Determining Next Visiting

The next visit (Surveillance 2) will be determined later, before passing the two-year certified (before July 14, 2013).


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3.0. ASSESSMENT RESULT

3.1. Summary of Assessment Report of the RSPO Certification

MUTUAGUNG LESTARI has conducted a Surveillance-1 assessment of PT BERSAMA SEJAHTERA SAKTI Operation

consisting of 1 (one) mill and 4 (four) oil palm estates. MUTUAGUNG LESTARI found that PT BERSAMA SEJAHTERA

SAKTI 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.

6/141/ dated February 6, 2012.Examples of document of information request to response the request for report Obligatory (UU.

No. 7 1981 article 7 paragraph1) from Kotabaru Labour Social and Transmigration Agency No, 566/141/ dated February 6, 2012.

The response has been made by sending the company employment report. Together PT.BSS already had a mechanism to

receive and respond to requests for information from stakeholders. Mechanisms are set out in SOP No. 034/BSS-SOP/10April 1,

2010 and also recording of information document for request of demand report obligatory are available (based on UU. No.7 1981

article 7 paragraphs 1) from Kotabaru Social Labour and Transmigration Agency No.56 on December 2011 to January 2012, and

has been accepted by the Kotabaru Social Labour and Transmigration Agency as evidenced by a receipt on February 14, 2012.

Retention times for information and response request is 5 years, accordance with the SOP in point 5.8.

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.

In accordance with the Document Control Procedure, No. Policy: 301/BSS – DOC-01/11 page 3, listed in point4.

GENERAL INFORMATION, PT BSS document available for public is :

Legal Documents, example, Location Permit, Plantation Business Permit (IUP), Land Use Rights (HGU) certificates, etc

Environmental Iimpact Assessment (AMDAL), Environmental Management Plan/ Environmental Monitoring Plan (RKL/RPL)

Documents.

Policy & Company Manual

Occupational Health and safety (K3) Program

HCV Document & Social Impact Assessment Document

Continual Improvement Program

PRINCIPLE #2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

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

The Company strives to meet all regulations relating to the operations of the plant and plantation, for example:

1. Company Deed number 540 dated June 25, 1984 on behalf of PT Bersama Sejahtera Sakti by Minister of Justice of the

Republic of Indonesia dated December 3, 1984 Number. C2-6882-HT-01-01 in 1984 in front of Notary Ridwan Suselo.

2. Changes of company data of PT Bersama Sejahtera Sakti dated December 18, 2008. Numbers the company register no.

AHU-0123104.AH.01.09 year 2008.


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3. Registered Certificate of Finance Ministry of Republic of Indonesia Directorate General of Taxation Regional Office in South

Jakarta No. PEM-138/WPJ.04/KP.1103/2007 dated April 5, 2007.

4. Permanent Business License Number 552/T/Pertanian/1997 dated October 31, 1997.

5. AMDAL (Environmental Impact Assessment) Document as required in Regulation of Environmental Ministry 11/2006 about

type of business plans and activities that must be accompanied by AMDAL Document

6. Document in the form of land tenure rights leasehold. There are 4 PT BSS Land Use Rights (HGU) Document. Example:

Decision of the Head of National Land Agency Number 62/HGU/BPN/2004 an area of 1.100 Ha is valid until 2039.

7. Industrial Wastewater Permit Utilization of Palm Oil palm plantations on the land by Kotabaru Regents

No.188.45.296/KUM/2011 (a permit renewal) valid until 2016.

8. Hazardous Material (B3) Waste Temporary Storage Permit by Kotabaru Regents No.188.45/192/KUM/2010 valid until April

2015.

The Company has also provided evidence that periodic regulation relating to the operations of plantation and plant in accordance

with a development update.

Available mechanisms to update / revision of regulations on SOP 701/TQEM-ESH/10. Evaluation of available evidence on the

fulfillment of the Regulatory Compliance Evaluation Checklist Form and updates has been made with the new regulations.

Based on the results of studies document the audit team found sufficient evidence that the documents held by the

Environmental Impact Assessment (AMDAL) in compliance with relevant regulations PT BSS, example the company has

reported a report Environmental management Plan/ Environmental Monitoring Plan (RKL/RPL) on first semester and second

semester period in accordance with actual conditions and has been accepted by the Environment Bodies of Kotabaru district.

The company has consistently endeavored to do updating related legislation. Available on-site Rules and Regulations Summary

Matrix Associated With Activities, plantation and plants. The matrix includes information requirements of the law (chapter by

chapter) that must be met by plantation companies, and compliance evaluation results.

The Company already has a mechanism to update the rules and have a summary matrix Regulations and Regulations for every

plantation and plant operations. Compliance with regulations madeperiodically by the Department PSQM Minamas Plantation.

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

PT BSS have legal documents related to the acquisition and use of land for oil palm plantations. These documents is :

- Reservation of the area Permit (location permit) covering 14 000hain accordance with the Decree of the Governor of South

Kalimantan No.04/PL/1988/AGR-43.

- Land Use Title Certificate No.1 year 1995, covers an area of 8.222.54 ha, valid until December 31, 2022.

- Land Use Title Certificate No.36 Year 2002, covers an area of 3.318 ha, valid until December 24, 2037.

- Land Use Title Certificate No.42 Year 2004, covers an area of 100 ha, valid until April 20, 2039.

- Land Use Title Certificate No.62 Year 2004, covers an area of 1.100 ha, valid until December 10, 2039.

- Kotabaru Regent Decree No. 188.45/389/KUM/ 2009, October 15, 2009 about registration agreement of Plantation Business

Permit (IUP) PT Bersama Sejahtera Sakti at Kotabaru district.

PT BSS Management has proposed a Revision Petition Area Circumference Measurement Plantation PT BSS to the East

Kalimantan Provincial National Land Agency (BPN) Offices which aims to open up the boundaries of the enclave areas have

been acquitted. The proposal has been made available some documents and evidence for the measurement of re-nomination by

the National Land Agency (BPN). These documents are:

1. No. 118/BSS/UM/PSD/IX/06 dated 27 September 2006 on the Revision of the area Land Use Rights circumference

measurements that have been released of ± 529 Ha.

2. No. 066/BSS/UM/PSD/VI/09 dated June 1, 2009 of the revised circumference measurement Land Use Rights HGU area that


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has been released of ± 529 Ha.

3. No. 100/BSS/UM/PSD/VII/06 dated July 31, 2006 Revised circumference measurement of the areas that have been released

of ± 651 Ha.

4. No. 100/BSS/UM/PSD/VII/06 dated June 10, 2009 Revised Land Use Rights (HGU) measurements around the area that has

been released of ± 651 Ha.

Routine maintenance of the boundaries of the plantation is done by identifying and monitoring boundary markers. For The

markers are damaged or missing, do the change and also the painting of the stakes could not be read. Acquisition and land

compensation in the form of compensation (payment) to the owner all have been resolved in 2004. The processes of land

restitution settlement evidenced by documents in the form; 1). The minutes of meetings, 2). Landlord Statement, 3). Payment

receipt & 4). Landlord Resident Card. To resolve land conflicts or land claims of other parties, PT BSS already have a mechanism

in the form of SOP Land Claim settlement (035/BSS/-SOP/10) which was passed by the company management on October 5,

2010, The document has been revised from the previous document

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.

At the PT. BSS area we may not find the owner of the rights of traditional, this is evidenced by the results of public consultation

and also the letter from the National Land Agency of the Kotabaru District On June 23, 2010, stated that the status of land,

especially in the District of Kotabaru until now and has never been any provision of regulations governing the status of

customary rights / customary land; and in connection with the matter, all the Land Use Rights (HGU) is published by the National

Land Agency and or during the process right, not found with the status of land rights of indigenous / customary land. Although

there is no customary rights in the area of the PT BSS, but based on the identification document HCV PT BSS shows that in the

area indicated the existence of HCV. 6 (Region which has an important function for the local community's cultural identity), that is

the area of the Tomb of Ancestors Village Sungkai. In the process of identification and determination of the region into areas of

HCV, we conducted the focus group discussions (FGD) and interviews with the parties (stakeholders). There is also a list of

present implementation of the Public Hearing on January 8, 2010 in the Office PT. Bersama Sejahtera Sakti

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 has a corporate plan document for the short term the Year 2011-2012 Work Plan and distribution contained in the

2011-2014 Budget for Gunung Aru estate, Gunung Kemasan estate, Laut Timur estate, Pantai Timur Estate and Gunung Aru

palm oil mill.

1. For estate Unit Management Gunung Aru estate, Gunung Kemasan estate, Laut Timur and the Pantai Timur estate there

are operating costs plan that have been approved by the Manager Estate, Estate GM, GM and Head Plantation Operation,

the distribution of work plan is as follow:

a. Forecast production 2011-2015, yield production (ton/ha), administration cost, labour cost, mature upkeep, manuring,

harvesting and collection, transport, etc.

b. For corporate environmental management plan has a plan to allocate these costs include costs for activities such as

Occupational health & safety (K3), RSPO, HCV, Environmental impact assessment (AMDAL), etc

c. For social governance plan the company has plans to allocate these costs activities for religious holidays, the wages of

teaching staff, the cost for CSR programs and social contribution to society, etc...

2. Gunung Aru POM are planning operating expenses approved by the Mill Manager, Mill GM, SGM Plantation Operation

Region Kal /Sul, Plantation Operation Head, GM Finance Budget & Tax, distribution of the work plan is:

a. Forecast mill intake (FFB), CPO extraction, kernel extraction, processing cost, Admin cost, Training cost, Environment


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cost, Health cost, Transport cost, etc.

b. For corporate environmental management plan has a plan to allocate those costs among other expenses for the

activities of manufacture, installation and maintenance of bulletin boards of occupational Hhealth & safety and non

occupational health and safety, the cost of laboratory analysis services for CPO and wastewater analysis, etc...

c. Social management plan for the company has plans to allocate these costs include costs for activities such as donations

to a third party fees, the proposal celebrations, socialization expenses of Occupational Health & Safety, RSPO, HCV,

Social Security, Safety and Health, etc...

The Company has implemented SAP for financial monitoring. Based on the observation of documents the company has been

projecting for some activities such as production, extraction of crude palm oil, palm kernel extraction by the year 2014/2015.

There is a Land Feasibility Study report documents the 2nd Phase area replanted in Gunung Aru estate by Minamas Research

Centre in September 2011. Land suitability classes for each unit in the area replanted categorized into several sections, it is:

Ordo of the soil, Soil series, Slope, Land Class, the limiting factors of land classes, the management of borders and land area.

Land class S2 (same / Suitable) covering 139 ha (41%), S3-class land (less suitable / moderately Suitable) covering 188 ha

(56%), N1-class land (not suitable / unsuitable) area of 10 ha (3%).

Based on land class and land on the slope of the limiting factors are categorized into 0-3% (flat / flat), 3-8% (bumpy / undulating),

8-15% (wavy / rolling), 15-30% (hilly / Hilly) ,

30-40% (rugged / mountainous),> 40% (mountainous / very steep).

The soil types found in the area of Gunung Aru estate is Ultisol, Oxisol and Inceptisol.

There is a document preparation and replanting program, such as: Acceptance and seeds Selection data for BSS, Plant

Quarantine Release Certificate / PSAT Security, Pre-Nursery, Main Nursery at Pantai Timur estate, Purchase order seeds.

Estate year 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

Gunung Aru

Land Area 324,99 Ha 426,38 Ha 403,39 Ha 247,30 Ha 449,11

Year of Planting 1986 1987 1987 1988 1989

Seed Marihat Marihat Marihat Marihat Marihat

Gunung Kemasan

Land Area - 237,1 Ha 377,33 Ha 395,13 Ha 339,58 Ha

Year of Planting - 1989, 1990 1989, 1990 1990 1991

Seed - Marihat Marihat Marihat Marihat

Laut Timur

Land Area - - - - -

Year of Planting - - - - -

Seed - - - - -

Pantai Timur

Land Area - - - - -

Year of Planting - - - - -

Seed - - - - -

Seed planted by BSS from PPKS (Palm Oil Research Center) Marihat.

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

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

BSS- Minamas Plantation has SOP associated with farm estate management from land clearing to harvest contained in SOP

(AGRICULTURAL REFERENCE MANUAL) No. Policy: 110/EST-ARM/08, ratified December 22, 2008: planting materials, nursery

technique, replanting, land preparation, planting density, maturity age, upkeep field, manuring, canopy management,

management of coastal water in the soil / plant oil palm on peat, ablation, ripeness standard, harvesting interval, traceability, plant


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protection.

BSS has a SOP document for operational activities such as:

- Block Harvesting System (BHS), Block Manuring System (BMS), Block Spraying system (BSS), Watergate, empty fruit

bunch applications, Making siltvit, road maintenance preventive , storage, packaging of pesticides, development of beneficial

plant, storage of used oil, forest management conservation, emergency response, traceability (traceability), Gender,

preparation of reports Environmental monitoring plan / Environmental management plan, recording occupational accidents,

etc..

Gunung Aru Mill, PT.BSS have had the procedure starting from the receipt of fresh fruit bunch, processing until the CPO and

PKO dispatch to the operations of Palm Oil Factory ratified on July 26, 2010 by Head Plantation Operations (HPO) which

contains procedures such as:

1. SOP No.110/POD-FAC/07, Chapter I of the Basic Processing of Oil Palm Fruit such Acceptance (1.1), Sterilizing (1.2),

Striping (1.3), Digesting (1.4), Pressing (1.5), Clarification) (1.6), Seed and Fiber Separation (1.7), Kernel Station (1.8),

CHAPTER II. Palm Oil Stockpiling and Palm kernel.

2. Palm Oil Stockpiling (2.1), Laboratory Management (5.9), Boiler (6.1), Engine Power Plant (6.2), Types of Plant Machinery

(6.3), Security and Safety (6.10), etc...

CHAPTER I The Basics of Processing Palm Oil such as General Explanation (I), the Organization of Palm Oil Mill (II), Palm Oil

Mill Operations Administrative Procedure (III), Administrative Procedures delivery CPO or IKS / PKO (3.3)

There are checks and monitoring of operational activities carried out by BSS , such as:

1. Plantation Adviser's Report on Gunung Aru estate at 15th to 18th December 2011 and on the Pantai Timur estate at 17th to

20th February 2012 which explains the issues that need to be improved and recommendations for improvement include:

- Housing conditions need to be repaired and built residential central housing complex.

- Evacuation system, collection road in poor condition due to overload of fresh fruit bunch and the rest is recommended to

reduce the load of FFB transported by FFB truck transport

- Soil wash, the high leaching the soil (erosion) that causes the growth of oil palm plantations, fresh fruit bunch size and

production. Recommendations are suggested to the terrace contours, making siltvits, planting neperolephis, U shape Frond

stacking.

- Workers Complex, elderly housing conditions. New housing needs to be built for the workers to create a conducive

environment.

2. Mill Advisory Report of Gunung Aru Palm Oil Mil on 13rd to 15th November 2011 which explains the issue and observation

activities factories operation and recommendations for improvement and follow-up repairs.

Internal audit Gunung Aru Palm Oil Mil are inspection activities for example about the financial aspect, the purchase and supply

of goods, production of CPO / Kernel and delivery, follow up on previous internal audit findings. Last assessment on November

2011.

The Company also periodically reporting all operational activities in both the estate and plant month and results of operations are

set forth in the Estate Unit Monthly Report prepared by Estate Manager and Mill Unit report prepared by Palm Oil manager.

The report Estate Unit documents describe Area statement, Structure of organization, employee data, expenses, FFB production,

plant maintenance, fertilizing, replanting, rainfall data, road improvements, recapitulation of operating costs and activities in

occupational Health and safety management system, while in the Monthly Report Gunung Aru Palm Oil Mill explain the process

of achievement, maintenance management, Quality management, Cost management and inventory stock.

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


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((1) Soil Analysis Records :

Available records documented all soil analysis activities of the Soil Survey Review Final Report and Land Suitability Evaluation in

the Gunung Aru Palm Plantation, 2005. Based on the analysis of soil, type of soil in the Gunung Aru Estate is the MM-08 (Typic

Plinthudults), MM-24 (Vertic Dystrudepts), MM-10 (Linthic Hapludults), and MM-23 (Plinthic Eutrudox). Land suitability classes in

the Gunung Aru estate belong to the class S3 (less suitable) and N1 (not appropriate) to plant oil palm. But in all soil series have

the potential to be a class S2 with efforts to improve the limiting factors such as slope of the land is large enough, the stagnancy

soil infiltration, and substantial rainfall.

(2) Leaf Analysis Record :

Leaf sample taken once per year in the plantation area to be analyzed. Available records of leaf periodic analysis of the

document in Leaf Analysis Test Report PT BSS -Gunung Kemasan Estate and Gunung Aru estate, Period 2012 that taken

sample in March 2012. The document describes the Data Division, Block, No. LSU, Area, Planting year, the amount of principal,

the principal population per acre, soil type, the percentage content of ash, N, P, K, Mg, Ca, and N.

Activity analysis has covered the entire land area of PT BSS.

BSS have recorded the realization of activities to maintain and improve soil fertility such as:

a. Fertilization Palm oil plant based on recommendation of the MRC is accordance on the type of fertilizer NPK, Kieserite, Rock

Phosphate, HBFG (borate), CCM, dosage per subject, and the area of fertilization. BSS has realized 81% of fertilizer up to

the month of February 2012 the period of fertilization plans 2011/2012

b. Land Application at Gunung Aru estate area of 71.57 ha

c. Applications empty fruit bunch

o Gunung Aru estate area of 512 ha from 2.365 hectares a year are planned

o Gunung Kemasan estate an area of 108.93 Ha.

4.3 Practices minimize and control erosion and degradation of soils.

Available soil maps for each estate unit PT BSS, for example:

- Soil Map Unit (SPT) Pantai Timur Estate, equipped with a scale of 1: 55000; and legends that explain the information map

(SPT 1 = MM-25 Series Land Oxyaquic Dystrudepts, SPT 2 = MM-08 Series Land Typic Plinthudults)

- Soil Map Unit (SPT) Gunung Kemasan Plantation, equipped with a scale of 1: 50000, and the legend that describes the

information map (SPT 1 = MM-08 Series Land Typic Plinthudults, SPT 2 = MM-10 Series Land Lithic Hapludults, SPT 3 =

Series MM-24 Vertic soil Dystrudepts, SPT4 = MM-25 Series land Oxyaquic Dystrudepts)

BSS has had a management strategy for the area with a certain slope:

- Decrease erosion and surface runoff by maintaining vegetation by selective weeding, terracing, the placement of midrib

forming a U (U shape Frond stacking), mulls application with empty fruit bunch, and terrace planting amplifier (Vetiver).

- Water management in a way of making outlet or drainage, and making water gate.

- Improvement of soil fertility by mulching with a slender build fern Nephrolepis growth and development of the management

of soil pH with the provision of dolomite.

BSS has also been monitoring the erosion rate as evidence of efforts in controlling soil erosion and degradation has been

effective in accordance with applicable regulations (PP No.150 year 2000). These monitoring activities carried out by using the

method of Pole Erosion stilt attached on a sample point in the entire area of the plantation; on time in every month make a record

of decrease soil using gauge attached on the pole. BSS take measurements of soil erosion since the month of August 2010, and

has provided a monitoring record.

Gunung Aru estate erosion rate measurements on the Block O-03, N-02, G-03, H-04, making 4,890 siltvit and 15.375 meters

counture terrace.


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BSS has a maintenance program and the realization of such estate in Gunung Kemasan in February 2012 on the block W-09 to

W-19 Road Maintenance and Evaluation document that describes the condition of All weather roads, the road to avoid the

formation of stagnant, making side drain to drain water to drink into the collection block.

Based on field visits to the block W-09 has been taken care of main road and Collection Road is in good condition.

There are no areas of peat in the area of PT BSS

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

BSS has strive to protect water ways and wet lands including the demarcation of the river such as: Determination of the stream

buffer zone along the 50 meter of borders, Routine monitoring of water quality and waste water plant, and monitoring the use of

water for the plant process. Organization already has a policy to avoid chemical contamination (pesticides and fertilizers) in the

buffer zone and the flow of water (e.g. ditches) by not doing the spraying of pesticides and fertilizer around the region.

BSS determined of the demarcation of the river as one of the HCV area 4, which carried by special management, such as in

Batak river area, Block HH47, Pantai Timur Estate.

BSS monitoring of water management by policy in the buffer zone areas and water sources are not doing the spraying and

fertilizing 50 meters from the boundary water resources.

Available evidence the water river was monitoring and wells and water quality monitoring (class II), according to PP82 year 2001

there are some data on NAB. Evaluation of the suitability of available water management regulations in accordance Regulation of

Health Ministry 416/1990 on Conditions and Water Quality Monitoring.

Test Results Report for Monitor Well P-7 Gunung Aru estate PH 7,38; BOD 2,10; COD 5,87, Water River P-04 in Gunung aru

estate PH 6,9; Water River Q-07 in Gunung aru estate PH 7, Mill Domestic Water PH 6,2 performed every 3 months and

tested by the Center for Research and Standards (BARISTAN), Banjarbaru District, South Kalimantan.

Gunung Aru POM has 5 ponds Installation on Waste water Management (WWTP) and has conducted monitoring of factory

liquid waste BOD of water samples taken and tested each month by the Center for Research and Standards Kotabaru District,

South Kalimantan, such testing conducted at February 14, 2012 in pond No. 1(inlet) and the pond no 5 (outlet). The test results

show is still in the standard rule set out in the inlet pond no.1 result BOD 23 940, pH4.44; COD 47.461 and no.5 outlet pond BOD

105; PH 7,56; COD 211,47, parameter tested is PH, Total suspended solid/TSS, BOD, COD, Cadmium/CD, Plum bum/Pb,

Tin/Cu, Zinc/Zn, Fats/oils, N-total, Ammoniac/NH3-N.

The use of water data on Gunung Aru POM monitored each day and the details contained in this document Use of Water Supply

Allocation. Budget of water use by 1.9 M3/ton Fresh Fruit Bunch every month.The use of water by the BSS in the Mill is used for

boiler (treatment and process) and domestic. For Fresh Fruit Bunch processing activities at mill, water use in February with a

total water use of 18.693 M3 and Fresh Fruit Bunch on processed though 14195.96 tons and the average usage of 1.3 M3/ton

Fresh Fruit Bunch is still under the planned budget.

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

The Company has consistently applied the concept of integrated pest management with reference to the SOP. An example is the

first Division Gunung Kemasan Estate which has a beneficial plant breeding program to control the nettle caterpillars and bag

worm, until 2013 as follows: Cassia cobanensis (term plan of planting: 16.212 meters, requirement of planting material: 162.120

sticks, 1.500 man days), Turnera subulata (term plan of planting: 5.404 meter, requirement of planting material: 54.040 sticks,

1,500 man day). Antigonon leptosus (term plan of planting: 5.404 meter, requirement of planting material: 54.040 sticks, 1,500


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man days) beneficial plant and planting program until the year 2013 as follows : Cassia cobanensis (target : 6 m/ha, planting plan

year: 2009 = 1,25 m/ha, 2010 = 1,25 m/h, 2011 = 1,25 m/ha, 2012 = 1,25 m/ha, 2013 = 1 m/ha), Turnera subulata (target : 2

m/ha, planting plan year: 2009 = 0,5 m/ha, 2010 = 0,5 m/ha, 2011= 0,5 m/ha, 2011 = 0,5 m/ha, 2012 = 0,25 m/ha, 2013 = 0,25

m/ha), Antigonon leptosus (Target : 2 m/ha, planting plan year 2009 : 0,5 m/ha, 2010 : 0,5 m/ha, 2011 = 0,5 m/ha, 2012 = 0,25

m/ha, 2013 = 0,25 m/ha).

The company has also consistently census attach form nettle caterpillars , bag worms, mice and squirrels each month, as a proof

is : document contained the results of the evaluation of beneficial plant utilization and evaluation of barn owl box on February 24

2012 made by the Assistant 1st Division and acknowledge by Senior Assistant Manager Gunung Kemasan Estate, with following

result : 1). use of the beneficial plant is still very effective, where the nettle caterpillars /worm bags attack in Gunung Kemasan

Estates still below the threshold, so do not require chemical control. 2). use of the owl as a predator of mice is still very effective,

where the mice attack is still below the threshold.

Based on the last card data warehouse expenditures no.34/GI/08/11, on 26 August 2011, to Gunung Aru Estate there are usage

matador insecticides for pest nettle caterpillars at the blocks as follows: Blok A023 (50.58ha area with insecticide 1 liter,

equivalent to 0.0197 liters/ha), Blok A026 (73.83ha area, use of insecticide 1 liter, equivalent to 0.0135 liters/ha), A027 (96.04ha

area, use of insecticide 1 liter, equivalent to 0.010 liters/ha), A028 (83.06ha area, use of insecticide 1 liter, equivalent to 0.012

liters/ha), A029 (61.09ha area, use of insecticide 1liter, equivalent to 0.016 liters/ha), A030 (60.34ha area, use of insecticide 1

liter, equivalent to 0.016 liters/ha). Spraying activities carried out only at the level of attacks that have passed the threshold of

existing pest.

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.

Based on a field trip to a chemical warehouse, in principle companies have used the listed and licensed agrochemical materials.

Such as :Meta-Prima 20 WDG, Active Material: Metil Metsulfuron; No. Registration: RI. 1897/8-2008/T. Based on the book

committee pesticides, agrochemicals Meta-Prima 20WDG, valid license and until the period of 2013 (accordance with Regulation

of Agriculture Ministry No. 07 year 2007 on the terms and procedures for the registration of pesticides).

The Company also has consistent records of agrochemical use materials that show information about this application, area of

application, the application of rotation, number of employees, type of pesticide used and the amount of pesticide use. The

example is : Activities type : spray the dish by division 1 for area of 322 ha with the application rotation 3 times in 1 year, need

92HK, with pesticide type Prima up, amount of use 96,6 liter, target and the dosage according to the recommendation on the

label. The Company also has conducted training for all spray officers about procedures to good spraying and handling in the

event of accidents such as poisoning etc...

For the hazardous material (B3) waste management, the company already has mechanism for hazardous material and non

hazardous material waste management. The company also has to identify the sources of waste both in the plantation and in the

mill. For the plantation area, the source of waste to be managed by the company is former waste pesticide packaging. Which is

the company has made efforts in accordance with related regulations, such as: the company has temporary Hazardous Material

Warehouse licensed in Angsana Mini, POM and also submit a written request for permission for temporary hazardous material

Warehouse specially for Pantai Bonati Estate to related agencies, and build a hazardous material waste Warehouse accordance

with the classification based on its specifications.

Associated with the use of pesticides are classified as type 1 A or 1 B version of the WHO and paraquat, based on field visits


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companies do not use the agrochemical material from last year. In addition the company also had a policy (Memo No.POD-UM-

128/X/2008, dated November 4 2008) to not use the spray activities. Using paraquat in plantation

The Company has conducted a medical examination to the spray officer periodically once every 6 months. The Company also

had a policy banning for pregnant women or breast feeding women working in jobs related to chemicals such as spray and

fertilizer.

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

The Company has established and socializes occupational health & safety approved by the CEO Minamas Plantation On July 5,

2008, which contains the commitment to corporate responsibility in implementing the program occupational health & safety in all

activities in the plantation and plant operations. To realizing this goal, the company has established operations procedures

across the plantation and plant. Determination is embodied in an effort to meet the OHS labour legislation, and shall make

continuous improvement sand sustainable so that it becomes a means of risk control and management of business activities.

Goals and Objectives:

1) Provide protection to any person engaged in the activities of the company (Zero accident) and the company's assets

2) Creating safe and healthy business activity and to increase employee awareness toward safety culture.

3) Implement the RI Laws of occupational health & safety

BSS conduct safety briefings, examination of the implementation of the working SOP, monitoring the use of Personal Protective

Equipment is carried out by the division assistant, one supervisor and harvester supervisor.

There is a memorandum from the head PSQM on dated March 5, 2012 about the use of protective head gear standards in

harvest activities is the ANSI Z 89.1 in the context of fulfilling the regulations on personal protective equipment.

Based on a field inspection to Gunung Aru mill founded in EFB conveyor workers not using gloves and worker's use of the

grinding is not wearing protective eye wear in accordance with the identification of risks that have been made.

BSS has established the organizational structure for environmental occupational health & safety programs in the estate and mill,

such as :

Organization Structure of OHS Guiding Committee Laut Timur estate ratified by South Borneo Province Labour Social and

Transmigration Agency (based on Head of Labour Social and Transmigration Agency Decree No: Kep.116/P2K3/II/Labour

Agency, February 22, 2011) and Pantai Timur estate based on Labour Social and Transmigration Agency Decree, Kotabaru

District No: Kep.102/P2K3/II/Labour Social and Transmigration Agency, September 28, 2011.

Periodic meetings conducted by the OHS Guiding Committee done every month as in January 6, 2012 at the Pantai Timur Estate

meeting room was attended by 18 people who discussed the accident, checking fire extinguisher, first aid emergency training,

occupational health & safety month celebration, the health examination of employees, anticipated the cause of bird flu.

Labour social assurance is available to all workers with a total of 2,056 PT.BSS workers are included in the labour social

assurance in February 2012 with the contribution Rp.188.639.690, -and examples of accident claims on behalf of Anwar because

of FFB falling and died while working on the May 2011, and the claim in July 2011 a number of Rp.66.248.00 consist of death

benefits and regular compensation.

Data Periodic Examination conducted by the company doctor (David Terny Tumbel) on July 11, 2011 to 22 spray chemical

workers and 20 fertilizer workers and there were 6 people in pain is not due to the impact of occupational and on July 15, 2011

for 30 chemical spray workers there is a 1 person ill is not because of the impact caused by work.

There is a document that describes the activities of the Medical Check Up Employees Gunung Aru POM 2nd Phase by a Doctor

(Kotabaru RSO) and its officers and PT BSS Central polyclinics and Medical Check-up results, on December 22nd to 26st

October 2010 for 81 workers in Gunung Aru that explains all workers in good health. Checked parameters for: Mentalist status,


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status Stomaticus (ear, nose, neck, and chest), blood tests, but the results of periodic medical examination are only a general

conclusion as the results of healthy and sick. Periodic medical examination is carried out over a year since the last inspection in

October 2010 and advised to conduct periodically health examinations in accordance with the Regulation of Labour Ministry No.2

year 1980 and requirement inspection s of high-risk occupations.

Based on the above explanations determined CAR.2012.01

BSS has a risk of identification documents (HIRARC) on the estate made by staff PT.BSS on December 1, 2011 that describes

activities that are risky, the potential danger, risk, control, control the level of risk and recommendations.

Available Gunung Aru POM HIRARC (Hazard Identification Risk Analysis And Risk Control) risk analysis document record for

OHS program. Such as :

- Processing Department, The Loading Ramp: Lori withdrawal activities; Potential hazards or hit by a lorry towing sling;

impact of serious injuries on the limbs; Control stand at a safe place and use of Personal Protective Equipment and work

in accordance with the procedures.

Boiler Section: Activities open / close the steam value; potential danger hot surface and falls from heights; impact can cause

burns and fatal injuries / deaths; Control using safety gloves, Personal Protective Equipment, and work in accordance with the

procedure.

BSS has been set to review the recordings HIRARC once in every year.

BSS has conducted training programs in the occupational health & safety as did in the Pantai Timur estate on November 16,

2011 which was attended by 28 staff employees, supervision and harvesting and in Gunung Kemasan Estate on November 14,

2011 which was attended by 21 staff, supervisory and employee for first aid emergency training by company doctor which

describes the risks and accidents in the work area such as traffic accidents, choking, and administrative actions first aid

emergency accident until the claim to the Labour Social Assurance.

BSS in order to participate in Kotabaru occupational health & safety month on January 16, 2012 through sends a safety officer

and an expert occupational health & safety from plantation unit and POM is filled with a simulated marine accidents and first aid

on highway.

BSS has occupational health & safety Emergency procedures Fire SS-02, dated May 20, 2010 made by the Manager, senior

Assistant, and Assistant. Fire Fighting Unit establishment, duties and responsibilities (role of fire officers, fire-fighting team, the

coordinator, a occupational health & safety specialist, evacuation team, first aid emergency team), the location of potential fire,

fire protection facilities, the location of an emergency gathering place (form up point), alarm settings.

BSS already had the occupational health & safety program and first aid emergency equipment such as in the Laut Timur Estate

has 39 fire extinguisher units stationed in the housing staff, division offices, employee housing and 24 units first aid emergency

box office traction, elementary schools, daycare centers, offices and divisions brought about by all foremen.

Based on a field trip to Gunung Aru estate. Harvest workers wearing personal protective equipment (helmet, shoes) supervision

(foreman) to bring first aid emergency equipment when in the harvest activities.

BSS has put first aid emergency workers who received training at the work site as workers on the Gunung Kemasang Estate is a

foreman, foreman harvest, maintenance foremen, clerks transport. The workers have been trained by a company first aid

emergency doctor on 14 November 2011.

Gunung Aru POM has provided training first aid emergency on July 9, 2011, lead by physician and nurse clinics to 14 workers in

the plant operations.

Based on interviews with the head of the OHS warehouse in Gunung Aru indeed have been trained first aid emergency by the


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company held in November 14, 2011.

There are ESH documents that are created by each Plantation and Mill unit that describes the data and the evaluation of

occupational accidents and occupational injuries are reported monthly to the Manager Environment Safety and Health, As in

Chronological Report of Injury Form. (The identity of the employee, the cause of accident, incident time, incident location, a brief

chronology of events of the accident, Suggested improvements to prevent similar accidents happening again, the discussion.

WORK ACCIDENTS evaluation document in each unit as there are cases of occupational accidents in February 2012 (on behalf

of Battin at harvest time the left foot crushed by bark) categories as minor

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

Available human resources (HR) training program documents in 2011/2012 PT BSS. There are 23 types of training programs are

made. Program at the designated office to 16 employees, including training programs for the community (Firefighters, buffer

zone, HCV, and socialization environment RSPO). The Company has considered the types of training according to the rank of

the workers.

Available evidence in the form of attendance record of conducting training, training materials and photo documentation of training

activities. Based on interviews with several workers (workers spray and harvest), they acknowledged that the company has

provided training to all workers.

The Company has had a contractor selection mechanism in an effort to help the work of the management unit and consider the

involvement of the community to actively participate. Such as : Fresh Fruit Bunch transport contractors, Fresh Fruit Bunch

transportation companies always require the contractor to comply with regulations on employment in performing work of Fresh

Fruit Bunch transport to the mill as the use of PPE obligations, payment of employee wages in accordance with the Regional

Minimum Wage, etc..

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.

Available documents include documents the impact analysis of the Environmental Impact Assessment (AMDAL) which consists

of documents AMDAL, Environmental Monitoring Plan (RKL and RPL). The AMDAL document has been approved by the Minister

of Agriculture. 036/AMDAL/BA/II/1996 Head of Agribusiness. For RKL / RPL also has been approved by the Minister of

Agriculture. 010/RKL-RPL/BA/IV/1997 Cq. Head of Agribusiness.

Replanting activities undertaken by the company in 2010 in Gunung Aru Estate area of 299.32 hectares, the Company conducted

a study summary influence of replanting activities on the environment and social aspects by Aksenta Consultant to ensure that

environmental management activities in accordance with the principle of conservation. Replanting activity has also been

presented in the report on the implementation of the Eenvironmental Management Plan/ Environmental Monitoring Plan period of

the 1st and 2nd semester in 2011 which has been on passes by Kotabaru Environment Bodies

Available Eenvironmental Management Plan/ Environmental Monitoring Plan reporting record periodically, for example:

1. Environmental Management Plan/ Environmental Monitoring Plan report period of the first semester (January-June 2011) on

October 20, 2011 submitted to the Ministry of Environment and Environment Bodies Kotabaru district .

2. Environmental Management Plan/ Environmental Monitoring Plan report of the second semester (July – December 2011) on


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March 07,2012 submitted to the Ministry of Environment and on March 9, 2012 submitted to Environment Bodies Kotabaru

District.

The Company has included the monitoring of soil erosion and management activities in Environmental Management Plan/

Environmental Monitoring Plan replanting reports.

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.

PT BSS have identified the presence of HCV, it is described in HCV PT BSS Identification Report by CV. Pollito As a follow-up of

the identification of HCV, PT BSS has made efforts in the form of:

Preparation of HCV management plan

Conduct management in accordance with management plans, such as : monitoring observations of vegetation and fauna, the

presence of HCV Evaluation, Dissemination of protected species, rare, or endangered species, and habitats of high

conservation value to the employees and surrounding communities

Monitoring on a regular basis to ensure the preservation of flora and fauna

Several follow-up activities have also been carried out in accordance with the recommendations contained in the PT BSS HCV

Identification Report document. These activities is ;

Planting of natural vegetation and local

Making pole and signs, as recommended color circle Minamas Head Plantation Operation Group for the management of HCV.

Notice to Employees and Society of the conservation area (Available Minutes of Socialization and photographs and proof of

publication of protected species and have been disseminated to employees and the surrounding community; example of

socialization to the employee on the date of March 15, 2012 and photographs).

Publications by placing posters in every office of the Division.

Decree of the appointment of HCV. Officers in the name Edi Purnomo The letter was signed by the Gunung Kemasan Estate

Manager (Chairman SOU), entered into force on December 1, 2011.

The results of the verification and follow-up management of HCV PT BSS example is the location of Batak River (Pantai Timur

Estate). Conditions of the area shows that there have been attempts to program management of the river border with the

installation of warning signs to ban hunting and fishing in the region. Condition of stands dominated by plants and vines and

plants under some palm trees that are no longer maintained (not harvested fruit as well as fertilizing and spraying is not done),

some of mahogany and sungkai plants have been planted as a reforestation effort of the river border area. Installation of warning

signs has been made related to the presence of HCV.

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

In an effort to minimize waste pollution to the environment the company has been identified sources of waste and its

management. For example: identification of sources of waste in the Pantai Timur Estate. There are four areas namely household

waste resources, workshops, warehouses and offices.

Based on the identification of sources of waste the company made efforts to minimize environmental pollution. For example :

develop SOP on waste management of hazardous material and non hazardous material , to check the fulfillment of the SOP,

conduct monitoring of hazardous material waste, collect hazardous material waste in the waste warehouse area with very well

and gave hazardous material waste to collector who have a license

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


ASSESSMENT REPORT


BSS can show recording and calculation of energy and renewable energy use on the Use of Fiber and Shell documents, the data

shows the total use of 0.45 mt / CPO. 18 393 tons of fiber and shell 7.883 tons compared with the total CPO 58.462 tons, Diesel

consumption (Lt) per CPO. Fiber composition with the use of shell (30:70). BSS had been monitoring the use of renewable

energy (shells and fiber) and document them. Available Monitoring records of shells and Fiber Fuel Gunung Aru POM- PT BSS,

the period January 2011 to December 2011. Based on these recordings is concluded that the average fiber consumption per

month is still below a predetermined budget (budget: 0.06 Kwh / kg fiber). For example: Month of November 2011 at 0.05 kwh /

kg; Month January 2012 amounting to 0.058 Kwh / kg. BSS has conducted an evaluation of the monitoring data as follow: cause

of fiber consumption below budget due to the maximum boiler efficiency; action plan has been created to address this include:

maximize the usage of fiber to reduce the flow of gas boilers to below a set threshold, the boiler operates properly in accordance

with the SOP, operates two capacity FFB boiler unit 20 ton/hour and 2 units of 1000 KW Turbine capacity to cover the processing

power consumption , and evaluate the efficiency of fuel consumption and exhaust emissions on a regular basis. As for the use of

shells, average usage is below a predetermined budget (budget: 0.36 Kwh / kg shell).

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.

PT BSS already has a policy on zero burning in the Reference Manual documents the Oil Palm Agronomy in section 4 about

Land Preparation. SOP is to explain that according to the Directorate General of Plantation Decree No. KB 110/SK/DJ

BUN/05.95, dated May 30, 1995 on technical guidance without the burning of land clearing for plantation development to guide

the preparation of land without burning; so that the land clearing activities should be guided by the contents of the letter.

Available recordings realization of replanting activities. Replanting undertaken by contractors PT Cera Indonesia. Replanting

activities carried out by removal of the stump and chopped. PT BSS does not set the fire in replanting activities. Under the

Employment Agreement Letter / SPK (no. 001/Replanting/BSS-GAE/XI/2009) information obtained by the contractor there were

10 kinds of details of replanting work by the contractor and did not reveal any burning activities in the clearing of land area.

Based on the results of field visits in Block D3 and C3 where the block is the area replanted, the company has implemented a

zero burning policy in both blocks. Also on the site is also available warning signs ban on burning and on interviews with

contractors that in the Agreement Letter is not allowed to burn in the conduct for replanting. Replanting is done by way of

toppling, chopping and unload palm weevil.

The company already has about Fire Fighting SOP (No. 038/BSS-SOP/10). In the procedure set about preparing the team for fire

fighting, fire control (both within and outside the plantation) as well as administration and reporting.

In tackling the fire company has been preparing the land and adequate infrastructure facilities such as fire fighting teams in each

estate, fire towers, firefighting equipment (engine robin 1 unit, 1 unit suction hose, 2 hose spray unit, 7 pieces of jute bags, boots

8 pieces, 4 pieces of gloves, masks 4 pieces, 4 pieces of glasses). However, there are facilities that still have not adjusted by the

number of firefighting personnel. For example: in the Laut Timur Estate

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

There is evidence of mill pollution sources and emissions monitoring, the boiler 1 & 2, at Generator, a cabin ambient air, and

boiler area for the month of June 2011 by Company Hygiene & Occupational Health (Hyperkes) Banjarmasin and has met the

NAB in accordance with applicable regulations. On field trips have been provided evidence of monitoring emissions in

accordance report RKL / RPL 2011 (pollutant emissions, ambient air and noise) measurements have been appropriate parameter

Threshold Value.

BSS has made efforts to reduce pollution and emissions such as Gunung Aru POM to perform preventive maintenance for the


ASSESSMENT REPORT


sources of pollution from the engine include engine maintenance, prevention of break down the machine.

Gunung Aru POM has 5 ponds on Wastewater Management Installation (WWTP) and has conducted monitoring of factory

effluent BOD of water samples taken and tested each month by the Center for Research and Standardization Kotabaru district,

South Kalimantan Province. The area that was applied in the form of liquid waste, amounting to 11.174 flat bed flat beds with a

wide range of 74.06 ha. BSS daily monitoring of the effluent that flows into the area and recorded in the document Summary of

Daily Effluent Application. Available diary effluent monitoring applications Month Period January 2011 - February 2012. BSS has

also been the identification of WWTP is owned that cause pollution sources such as methane gas and has a treatment program

for the management of methane gas generated from the WWTP.

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.

Available PT. BSS Social Impact Assessment document in 2010. Most of the data collection process performed by the method of

direct interview and Focus Group Discussion (FGD) on the community around the plantation. This social impact assessment of

activities carried out by a third party, name CV POLLITO. The document also equipped with attachment evidence comes in the

form of a list of stakeholders involved in the implementation of social impact assessment, among others: the mayor, Board of

Cooperative & Staff KKPA and PT. Sajang Heulang. For replanting activities, in 2010 PT BSS have involved a third party that is

AKSENTA in replanting activities Against Impact Assessment and Environmental and Social Aspects of available reports from the

study. Implementation Report also available RKL / RPL PT. BSS 2nd Period (July-December 2011) which has been adapted to

the operations of PT. BSS and has been reported to BLHD Kotabaru District, dated March 9, 2012. (Letter Document No:

027/SPD-GAF/III/2012). Although not included in the category of companies that must provide an area for plasma estate in

accordance with the Regulation of Minister of Agriculture no 26 in 2007 but PT BSS had planned to carry out oil palm

management partnership program with local communities through the plasma scheme. Available documents related to the

plasma program progress will be made by PT. BSS, among others:

Proposed Names Field and Plasma Plantation PT. BSS (Kebun Makmur Bersama Estate/MBE), total area 2,330 ha, consisting

of: an area of 498 HCV, 64 Ha & Field covering an area of 1831, 36 ha (Letter Number: Plasma - GM/048/XII/2011/s, dated 2

January 2012).

Situation map of Palm Oil Development Project partnership between PT. BSS and Sejakah Makmur.

Proposed Activities Early Progress of Plasma (No. EBM-GM KKPA/001/II/2012/s, dated February 1, 2012).

Work Plan Preparation Oil palm Development Partnership PT. BSS with BSM Cooperative (Period February 2012 - June

2012).

Budget Plan Period February 2012 - June 2012 for PT. BSS with BSM Cooperative Project Partnership

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.

PT BSS already have procedures for communication and consultation with the parties (SOP No. 034/BSS-SOP/10 April 1, 2010).

Stakeholders are also list in 2012, consisting of: a). Muspida = 12, b). Muspika = 7, c). Contractor = 19, d). Supplier = 11, e).

Relevant agencies = 27, and f). National & Local NGOs. There is some evidence has been done document as communication

and consultation process with stakeholders Examples: 1). Application Help Tool to repair the road from the village head of Betung

to PT. BSS dated March 1, 2012. It has been followed up by Repairing Betung Street Village - Village Bekambit as far as 8 km

(total cost of Rp. 7.2075 million) and photographs of the implementation, 2). Requests for health assistance incentives at Pulau


ASSESSMENT REPORT


Laut Timur District Officer on October 28, 2011 and was followed by the provision of incentives by PT. BSS each visit by healthy

officers from District (end of month), valued at Rp. 400.000/unit. Management of PT BSS also has determined that officers

responsible for consultation and communication with the public. In accordance with SOP Request for Information, No. 34/SOP-

PI/BSS/10 with effect from March 1, 2010, determined that the responsible in the process of communication and consultation with

the parties on PT. BSS is the Manager of Operations Unit.

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

PT BSS has provided a means to communicate and receive complaints from all parties, namely a suggestion box placed in the

office and employee housing estate. Until now there has been no complaint / objection related to the management of oil palm by

PT. BSS. To receive complaints and resolve disputes, PT BSS has a procedure Request for Information (034/BSS-SOP/10) by

adding the system to respond to requests for information or complaints that is 15 days from the request for information or

complaints received by the company. No 035/BSS-SOP/10 of SOP Land Claim dated October 5, 2010 procedure has been

available as well., authorized by the Manager respectively - each plantation (GKE, GAE, PTE, LTE) and plant (GAF). Based on

information from interviews with the village chief in the village of Sejakah (Laut Timur Estate) and the village of Tanjung Harapan

(Pantai Timur Estate), that so far there is no problem in terms of communication with the company, including requests for

assistance.

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.

PT. BSS has been associated identification procedures, calculations and compensation for loss of legal and traditional rights by

involving community representatives and relevant agencies It is set in the Request for Information (034/BSS-SOP/10) by adding

the system to respond to inquiries or complaints, that is 15 days from the request for information or complaints received by the

company and recording complaints / objections have been available at each location - each estate. available documents the

process of identifying the parties who receive land compensation, the stages of document Status of Land Claims Case, PT BSS -

Minamas Plantation. This document includes the names of the personal / group, the stages of their land claims case, the location

of the land claims cases and forms of settlement or compensation. Since 2004 all the land restitution process has been

completed. There are examples of documents of land restitution, such as:

Minutes of the Council dated May 17, 2004 the compensation of land between Darkasi Latif with the PT. BSS is known by the

Head of the Pulau Laut District and Village Heads of Batu Tunau.

Receipt of payment instead of the value of Rp. 52.5 million on behalf of Darkasi Latif for the settlement of its land to grow crops

on an area of 15 ha located in the village of Batu Tunau, Pulau Laut Timur District, District Kotabaru.

Receipt of Payment of PT. BSS to Darkasi Latif worth Rp. 52.5 million to compensate the land area of 15 hectares, in July

2004.

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 has committed to provide the wage determination in accordance with the Minimum Wage in 2012 plantation sector

in accordance with the Decision of the Governor of South Kalimantan No. 188.44/0630/KUM/2011 dated December 28, 2011

amounting to Rp. 1,250,000. Based on documents reviewed and the results of public consultation with the Department of Social

Welfare Manpower District. Kotabaru stated that the wages paid by the company in accordance with relevant regulations. for

example:

- Payment of wages on the name of Mr. A. Marjan (Harvesting worker) in the month of February 2012 amounted to Rp.

1,250,000. Remuneration is outside of other benefits such as rice and other benefits.


ASSESSMENT REPORT


- Payment of wages on Mother's Name. Parminah (Spraying worker) in February 2012 amounted to Rp. 1,250,000.

Remuneration is outside of other benefits such as rice and other benefits.

The Company has had a firm rule that has been signed by representatives of the PT Bersama Sejahtera Worker Unions and

representatives of the PT Bersama Sejahtera Sakti Worker Union. The regulation has been in passes by the relevant agencies

and the approval of the workers. In the documents the company has set rules about the working relationship between employers

and workers (working days, wages, allowances, leave, etc.)

Public facilities and infrastructure provided by companies such as: housing, hall employees, schools, transportation to school,

polyclinic, bus staff, clean water facilities, sports facilities, places of worship, and a Child Care (TPA). For example: Public

facilities in Gunung Aru Estate.

- Housing as many as 314 units of type G2, and G1 type as many as 18 units

- Policlinic: 1 unit

- Employee hall: 3 unit

- Mosque: 3 unit

- School Kindergarten: 1 unit; SD: 1 unit; SMK: 1 unit (planned to be realized this year) SMK Agriculture

- Church:1 unit

- TPA: 3 unit

- Soccer Field: 2 unit; GOR Badminton: 1 unit; Volleyball field: 3 units; Table Tennis: 3 units.

In doing certain jobs the company uses a third party (contractor). The Company has required contractors to pay attention to labor

problems. For example: Agreement Letter Transportation FFB (number GKE / SPK-LKL / I / 2012/024-TBS), signed by the Estate

Manager of Gunung Kemasan and Mr. H. Murhan. In the Agreement Letter (Article VII - Discipline and Responsibility) obtained

information that the PT BSS require the contractor to use FFB Transportation Personal Protection Equipment (PPE) at work.

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.

There is a union organizational structure of PT BSS (SP-Gunung Aru Estate). The structure has been registered with the Labour

and Transmigration Agency of Kotabaru District (number of recording 568/61/Labour Transmigration Agency dated July 10, 2007.

Based on information and interviews with one of the staff of PT BSS said that there have been changes in the organizational

structure of SP Mandiri PT BSS, but not on the list back to Manpower. It is suggest registering the BSS Mandiri worker union

organizational structure.

Available records of internal meetings Employees Union Independent Gunung Aru Estate on January 24, 2012

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.

Memorandum of the company No POD-UM-052/III/2010 subject: Child Protection Policy (Child Protection Policy). Based on field

visits to the BSS have been disseminating the protection of children - minors not to work; form of socialization is a sign board at

Child Protection is some locations are easily read by employees.

Based on the master list of employees of PT BSS, there are no employees working under the age of 18 years from the time

workers enter the PT BSS.


ASSESSMENT REPORT


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.

Accordance to SOP Code of Conduct No Policy 440/HRM-COC/07 Business Ethics and Corporate Commitment point 2.2.1

explains that the company implements the system of recruitment, promotion, and career development in a transparent, fair or

reasonable and consistent based on competency in accordance with company requirements.

Based on the master list of employees of PT BSS, provided information on ethnicity, religion, gender and mixed nationalities. PT

BSS transparent to hiring employee.

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.

Policy on sexual harassment and other forms of violence against women and to protect the reproductive rights contained in the

policy of Sustainable Plantation Management Guidelines No. 724/TQEM-SPMS/09 Policy on Social Policy point 4 which states

that the company is committed to protecting the rights of women relating to reproductive.

Evidence of implementation of the policy is PT BSS has established an internal organization that protects the rights of women

workers, namely the Committee on Gender. Appointment Letter available. No 002/GKE/VII/2010 Mrs. Nona Agripina as Chairman

of the Board Committee on Gender, Mrs. Pawan Ernawati as vice chairman of the Executive Committee on Gender, Appointment

Letter. No 002/GKE/VII/2010 Miss Yulyani as Secretary / Treasurer of the Board Committee on Gender. Letter of appointment

has been explaining each - each of the duties and functions of the office.

For women who are menstruating or nursing a company has a policy to grant a dispensation not to work with does not reduce

wages to the workers.

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

BSS does not have any agreement with smallholders or other local business to accept FFB. BSS only prossessed their own FFB.

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

PT BSS has demonstrated contributions to local development through several activities, such as: a). Program CD / CSR that has

been done in the villages around the farm and in early 2012 CD / CSR program has been incorporated into the regular Budget,

b). Utilizing the services of local contractors for certain types of specific jobs, such as transport of FFB, the plate-making deuker

& titi harvest, c). Payment of land and building tax, d). Payment CPO delivery services to related parties. There are documents

showing the contribution of PT. BSS on regional development, such as:

Monitoring the realization of CSR PT. BSS in 2011 in each estate. Total CSR program cost in 2011 was Rp. 457.58 million.

Letter of Land and Building Tax Payment (SSP UN) in 2011 on behalf of PT. BSS (TIN: 01.371.586.7-734.001, No. taxable

income: 63.02.040.009.000.0010.1), total payment of Rp. 1,860,711,496 (One billion, eight hundred and sixty million seven

hundred and eleven thousand four hundred ninety six dollars).

Summary of Payments Shipping Services CPO to the IPC (January-September 2011), a total of Rp. 437,969,018.

Nominal value of the Employment Agreement Letter (July 2011 - February 2012) by the Contractor for the FFB Local Transport,

Building Work, Bridge, Titi harvest and procurement of materials such as stone, sand, cement, a total of Rp. 28,681,233,986.

PRINCIPLE #7 Responsible development of new plantings


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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.

The organization has a document management environment of the EIA document and RKL / RPL. The document has covered

the entire area owned by the company (including areas that are being done replanting activities), and have analyzed the positive

and negative aspects of social and environmental operations and plant plantation PT BSS. The Company also made the

identification of HCV as well as social impact assessment for the entire area owned by PT BSS (including replanting the area)

Available Report documents RKL / RPL according to a report in the second semester period from January to June 2010, has

made plans and associated monitoring; decline in soil fertility and the onset of erosion (soil erosion rate measurements), air

quality and noise, water quality, flora and fauna threat, the potential for fires and public unrest problems. Available operational

procedures related to environmental management are 8 SOP

PT BSS does not have plasma farmers in the management of oil palm plantations.

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 documents a Land Feasibility Study report the 2nd Phase Replanted Area in Gunung Aru Estate by Minamas Research

Centre in September 2011. Land suitability classes for each unit in the area replanted categorized into sections such as: Order of

the soil, Soil series, Slope, Land Class, the limiting factors of land classes, the management of borders and land area.

Land class S2 (Suitable) covering 139 ha (41%), S3-class land (less fit / moderately Suitable) covering 188 ha (56%), N1-class

land (not suitable / unsuitable) area of 10 ha (3%).

Based on land class and land on the slope of the limiting factors are categorized into 0-3% (flat / flat), 3-8% (bumpy / undulating),

8-15% (wavy / rolling), 15-30% (Hilly) ,

30-40% (mountainous),> 40% (mountainous / very steep).

Implementation of the development of the plantation is mainly based on the suitability of land for replanting the area has been

described in RKL / RPL.

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 BSS have shown evidence of HCV identification reports document made by CV POLLITO. In the report has covered the

whole area of 13.925 ha BSS area (including the planting area after the year 2005, the area replanted and areas that are

currently in the submission HGU). Based on the identification of HCV there is no primary forest indicated. BSS has made

delineation of areas - areas identified as areas of HCV total of 553.12 Ha HCV area. There are some documents about the

implementation of the management plan area, especially the management of HCV-riparian area of the river, such as:

The costs of green buffer zone on the Pantai Timur Estate (PTE) for the River of Batak (total cost of Rp. 22,542,000).

Realization of Investment Reports Local Plants in the Batak River until December 2011 (12:56 Ha area, which has grown

principal stems 1960). Species planted are mahogany and sungkai. The report also included on the total area not to do

maintenance and fertilization is an area of 5.8 ha.

A list and photographs present the socialization of HCV in the village of Tanjung Pengharapan on March 16, 2012 (Pantai

Timur Estate Patronage Village).

Available also map a plan and the realization of land clearing PT. BSS in the final document of 2010 HCV identification reports.

Based on the identification of HCV PT. BSS known that

a. Planted year 2010 at Gunung Aru Estate indicated HCV 4.1 Riparian of Betung river 23,9 Ha.


ASSESSMENT REPORT


b. Planted year 2007 at Pantai Timur Estate indicated HCV 4.1 Riparian of Batak river 10,1 Ha c. Planted year 2006 at Pantai Timur Estate indicated HCV 4.1 Riparian of Batak river 18,8 Ha For the protection of Batak River border region, has given a sign of warning signs and yellow paint on the outer boundary of the

palm trees border the river (± 50 meters). It is based on the recommendations of the Report Identification of HCV. In the area

have also been carried out replanting (enrichment) with the types of plants sungkai (local species) and mahogany plants, and do

not fertilizing and spraying activities.

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

Available soil maps for each farm unit PT BSS, for example:

- Soil Map Unit (SPT) Pantai Timur Plantation, equipped with a scale of 1: 55000; and legends that explain the information

map (SPT 1 = MM-25 Series Land Oxyaquic Dystrudepts, SPT 2 = MM-08 Series Land Typic Plinthudults)

- Soil Map Unit (SPT) Gunung Kemasan Plantation, equipped with a scale of 1: 50000, and the legend that describes the

information map (SPT 1 = MM-08 Series Land Typic Plinthudults, SPT 2 = MM-10 Series Land Lithic Hapludults, SPT 3 =

MM-24 Series Land Vertic Dystrudepts, SPT4 = MM-25 Series Land Oxyaquic Dystrudepts)

Marginal Soil Map of the documents listed in the details land Survey report The map covers the entire area has BSS (including

crop acreage and the acreage replanted After 2005).

BSS has had a management strategy for the area with a certain slope:

- Pressing erosion and surface runoff by maintaining vegetation by selective weeding, terracing, the placement of midrib

forming a U (U shape Frond stacking), with a bunch of mulch application blank, and terrace planting amplifier (Vetiver).

- Water management in a way of making outlet or drainage, and making water gate.

- Improvement of soil fertility by mulching with a slender build fern Nephrolepis growth and development of the management

of soil pH with the provision of dolomite.

BSS also have been doing monitoring the pace of erosion as a testament to the efforts in the control of erosion and degradation

soil has been effective in accordance with the regulations (PP No.150 Year 2000). These monitoring activities carried out by

using the method of Erosion Pole to measuring soil attached on a sample point in the entire area of the estate; each month was

recorded to the decrease of soil to gauge mounted on the pole. BSS take measurements of soil erosion since August 2010, and

has provided a recording monitoring.

Gunung Aru Estate erosion rate measurements on the Block O-03, N-02, G-03, H-04, making 4,890 siltvits and 15,375 meters of

terrace counture

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.

At PT. BSS area we may not find the status of land as communal land (custom), it is proved by the results of public consultation

and a letter from the Kotabaru District Land Agency On June 23, 2010, stating that the status of land, especially in the Kotabaru

District until now has never been any provision of regulations regulating the status of customary rights / customary land; and in

connection with the matter, all Land Use Rights issued by Land Agency and or during the process of its rights, was not found

with the status of land rights of indigenous / communal land. Until now there has been found to indicate that the PT. BSS

conducted new planting outside the area in accordance with the Land Use Rights certificate has been issued by Land Agency

Province of South Kalimantan.

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.


ASSESSMENT REPORT


Until now there has been found to indicate that the PT. BSS conducted new planting outside the area in accordance with the Land Use Rights certificate has been issued by Land Agency Province of South Kalimantan.

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.

See criteria 5.1

The Company has set a zero burning policy in the Reference Manual documents the Oil Palm Agronomy section 4 Preparation of

Land (Land Preparation) explains that according to the Directorate General of Estate Crops Decree No. KB 110/SK/DJ

BUN/05.95, dated May 30, 1995 on technical guidance without the burning of land clearing for plantation development to guide

the preparation of land without fuel; so that the land clearing activities (Land Clearing) should be guided by the contents of the

letter.

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.

BSS has a monitoring and implementation of action plans in the plantation and plant activities as stated in the document RKL /

RPL period July-December 2011, which describes the plan to reduce or mitigate negative impacts that identified, such as:

Environment:

- Efforts to prevent pollution and air emissions resulting from plant operations to the quality standard in accordance with

existing regulations (monitoring of boiler smoke, vehicle emissions)

- Reduce noise levels by maintaining blow down silencer and the use of ear plugs by mill workers.

- Management of water sources with conservation along buffer zone / riparian by not fertilizing and spraying chemicals 50 m

from water resources and management of extinction flora and fauna.

- Management of WWTP and monitoring accordance of standards regulation to match the plant effluent (BOD, COD, etc.)

- Reduce of chemicals usage for spraying weeds such as not using paraquat and planting beneficial plants such as Turnera

sulbulata and antigonon leptopus (insect house, nettle caterpillars predator ), maintaining an owl house (barn owl).

- Handling of diesel fuel spills immediately so as not to contaminate the soil.

- Maintain health in the workplace to conduct medical check-ups to all employees annually

- Maintain cleanliness / sanitation in employee housing, factory and office

Social:

- Providing employment opportunities to the public around companies that have the competence to work in the BSS.

- Provide contract procurement opportunities and transport services to local communities to improve the local economy.

BSS showed documents to the Consolidated Corrective Action Monitoring Internal Audit results are explained RSPO PT.BSS 46

mismatches that have been repaired and in the settlement process


ASSESSMENT REPORT


3.2. Summary of Assessment Report of Supply Chain

Clause CPO Mills Mass Balance Model 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.

a) SOP of Gunung Aru POM refer to the Technical Guidelines for Oil Palm Factory 1, 2 and administration of the

appropriate Memorandum of Operation No.POD-UM-154/VII/2010 Head Plantation on July 26, 2010, which contain:

Acceptance of Fruit No. 110/POD-FAC/07, Boiling (sterilization) No. 110/POD-FAC/07, striping No. 110/POD-FAC/07,

digesting No. 110/POD-FAC/07, Compression (pressing) No. 110/POD-FAC/07, Purification (clarification) No. 110/POD-

FAC/07, separation of Seed and Fiber. No 110/POD-FAC/07, Kernel Station. l. No 110/POD-FAC/07, Palm Oil

Stockpiling. No 110/POD-FAC/07.

Gunung Aru POM has a SOP for Product Identification and Traceability Products in Plantation Minamas Mill No.SC

passed on October 20, 2011 by the Manager of the Mill and the estate manager.

b) Personnel responsible for implementation of these requirements include:

- Gunung Aru POM Manager keep and maintain all documents and records of the use of all raw materials,

supporting materials used in the production process and quality final product.

- Sustainable Plantation Assistant Quality Management (PSQM) checking the quality of FFB at Mill and make daily

recapitulation

- Assistant Laboratory analysis and quality testing of raw materials and products in all stages of Gunung Aru POM

production process

- Assistant / Senior Assistant / Manager Bulking responsible for the transportation of CPO and PKO products from

Mill to bulking station.

1.2

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

FFB in BSS showed documented procedures for receiving and processing certified and non certified FFBs, however the

acceptance of Gunung Aru POM are all from the plantation that is certified from PT.BSS, FFB from Gunung Aru estate,

Gunung Kemasan estate, Pantai Timur Estate and Laut Timur estate, so that the output of palm oil produced one hundred

percent of the products can be claimed as a certified RSPO oil. However, PT.BSS Gunung Aru POM has established the

Mass Balance system to anticipate the future when there is acceptance of the FFB from others plantation (not main estate).

2 Purchasing and goods in

2.1

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


ASSESSMENT REPORT


FFB in BSS showed documents certified at the acceptance of Gunung Aru POM are all from the plantation that is certified

from PT.BSS, FFB from Gunung Aru estate, Gunung Kemasan estate, Pantai Timur Estate and Laut Timur estate, so that

the output of palm oil produced one hundred percent of the products can be claimed as a certified RSPO oil. However,

PT.BSS Gunung Aru POM has established the Mass Balance system to anticipate the future when there is acceptance of the

FFB from others plantation (not main estate).

2.2

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

PT.BSS Gunung Aru POM can recognize and claim the products are certified for a year for 51.520 tons of CPO and Palm

Kernel of 10.209 tons since July 5, 2011.

When the surveillance audit carried out a total of CPO and Kernel generated by the Gunung Aru Mill since July 5, 2011 until

March 20, 2012 is 33.460.769 tons of CPO and Palm Kernel of 6.858.645 tons.

Gunung Aru POM - BSS will provide information to the Certification Body if there is excess production from those projected.

3 Record keeping

3.1

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

The entire recording and reporting has been created and stored completely by the company. Storage system in the form of

soft copy documents in System Application Programmed (SAP) and hard copy (print out) that is stored in the administration

of Gunung Aru POM.

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

Gunung Aru POM, PT.BSS has set the shelf and show records associated with the recording of receipts FFB oil in storage

until the storage tank. For example: daily reports, data entry and processing FFB, plant utilization, quality results and the

capacity of CPO and Kernel, Oil Quality in the storage tank, palm oil and kernels data of delivery (Delivery Order) and

Process Control Report document set 5-year.

3.3 (a) The facility shall record and balance all receipts of RSPO certified FFB and deliveries of RSPO certified CPO, PKO and

palm kernel meal on a three-monthly basis. (b) All volumes of palm oil and palm kernel oil that are delivered are deducted from the material accounting system

according to conversion ratios stated by RSPO. (c) The facility can only deliver Mass Balance sales from a positive stock. However, a facility is allowed to sell short.

a) FFB treated at Gunung Aru Mill up to this time entirely from the nucleus, so that the output of palm oil produced one

hundred percent of the products that can be claimed as a certified RSPO oil, however, BSS has set the Mass Balance

system to anticipate when if later on there are others estates FFB acceptance of the (not nucleus).

b) All CPO and Palm Kernel volume delivered by Gunung Aru Mill, PT.BSS 100% can be claimed for certified products.

c) All CPO and Palm Kernel volume delivered by Gunung Aru Mill, PT.BSS 100% can be claimed for certified products.

however Gunung Aru POM, PT.BSS unable to explain the documentation system and the adjustment of certified and

uncertified product if later on there is another acceptance of FFB from the estate that is not certified.

BSS under Minamas Plantation carry out the CSPO sales from greenpalm and the amount was 26,800 tonnes period of

January-June 2012 which BSS can claim the CSPO 51,520 tonnes at one year certification period (July 14, 2011 – July 14,


ASSESSMENT REPORT


2012)

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.

Gunung Aru POM has shown Sales Confirmation document No.00132/BSS/KTR-MKS/LOK/II/2012 on February 1, 2012

which describes the trade name of CPO (Crude Palm Oil) with the quality of Free Fatty Acid a maximum of 5 , 0%, 0.5%

maximum Moisture Impurities and documents No.00060/BSS/KTR-IKS/LOK/II/2012 Sales Contract on February 22, 2012

which describes the trade name with quality Palm Kernel Moisture, Impurities, dirt Sales maximum of 16%, but does not

explain the supply chain model that used in accordance with Gunung Aru POM SOP that set Mass Balance models in supply

chain.

3.5 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 the crush is covered through a signed and enforceable agreement.

Gunung Aru Mill, PT.BSS only selling Palm Kernel and not to cooperate with the independent Kernel Crushing Plant.

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

(d) The quantity of the product delivered

(e) Reference to related transport documentation

Gunung Aru POM, PT.BSS ensure all invoices have been issued for the shipment of palm oil contains the necessary

information such as invoice No.PDN/00226/BSS/III/2012 for CPO products are explained:

a) Name of purchaser is PT.Wahana Citra located at Sudirman Plaza building, Plaza Marien, 12th Floor, Jalan Sudirman

General Kav.76-78, Setiabudi, South Jakarta, and DKI Jakarta.

b) Invoice issued on March 1, 2012

c) A description of the product is Premium of Crude Palm Oil, but does not explain the types of products are RSPO

certified.

d) The number of products shipped by 2.005.800 Kg

e) Shipping and transport is agreed that CPO in Bulk buyers take from specified.bulking station.

5 Training

5.1

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


ASSESSMENT REPORT


PT.BSS Gunung Aru POM has conducted training and socialization Supply Chain Certification SOP Product Identification

and Traceability Products in the determination of Minamas Plantation Mill Mass Balance supply chain model on 15

September 2011 which was attended by 22 people of staff Mill and Estate

6 Claims

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

Gunung Aru POM, PT.BSS not able to show the use of claims to support the RSPO certified palm oil according to the RSPO

Guidelines for Communication and Claims.


ASSESSMENT REPORT


3.3. Conformity Checklist of Certificate and Logo Use (Only apply for Surveillance Assessment Report)

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

X or√

S1 BSS has logo and certificate approval/permit number MUTU-RSPO/005

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

X or√

S1 The Company does not use the logo both on-product and off-product within the scope of PT.Bersama Sejahtera Sakti.

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

X or√


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

X or√



ASSESSMENT REPORT


3.4. Summary of Time Bound Plan Verification of the RSPO Certification

Total companies visited (0.8 √Y) Where Y is the total of one holding company The company name : Minamas Plantation

1. 2. 3.

Visit date :

2.1

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

X or√

All of Minamas Plantation Management Units have been audited

2.2

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

X or√


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√


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√


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√


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√


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√



ASSESSMENT REPORT

SPO – 4006a.4 Page 36

Prepared by Mutuagung Lestari for Bersama Sejahtera Sakti

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

During the Stage-2 assessment 6 (six) nonconformities were assigned against Minor Compliance indicators. 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 has been verified during this surveillance assessment.

3.5.1 Identification of Findings, Corrective Actions and Observations at Stage-2 Assessment

CAR No

Ref Std Finding Area Grade Time

Limits Corrective Action Observation Status

Closing Date

2010.02

2.1 Legal requirements Evaluation-Legal requirements of Rules and Regulations in the form of matrices that informed the legal requirements (the articles) from a number of rules and regulations, which must be complied by the company, however there were a numbers of legal requirements (the articles) of the regulations, had not been evaluated. For example: the articles related to employment opportunity and treatment without discrimination, and job training as stipulated in the Law no. 13 of 2003, and others.

Mill and

Estate

Minor S-1 BSS should review and update the Summary of Rules and Regulations relating to the activities of palm oil plantations and mills so that it covers all the legal requirements and regulations.

It is found that there are the related rules and regulations have not been updated in the document lists of the rules (for example: most relevant local regulations, etc.); and there is no evidence of adjustment to changes in legislation (e.g. regulations related to the AMDAL: PP27/1999 on AMDAL; KepmenLH 17/2001 concerning Type of business that required the AMDAL; PermenLH 8 / 2006 concerning the preparation of the AMDAL;and PermenLH 11/2006 concerning Types of business plans and activities which shall be furnished by AMDAL) 22 March 2012 Based on documentation review BSS has updated in the document lists of the rules (for example: most relevant local regulations, etc.); and there is evidence of adjustment to changes in

Closed 22/03/2012


ASSESSMENT REPORT

SPO – 4006a.4 Page 37


CAR No



Closing Date

legislation by identified the environment and social assessment based on replanting activity, explained in first and second semester of RKL/RPL report.

2010.07

Minor 3.1.1

Replanting program - the Organization has had an annual replanting program in form of replanting program documents from 2007 to 2013. Replanting of an area of 1,454.07 hectares was planned from the year 2009/2010 until 2013/2014, and has done since February 2010. However an annual review which considers: plant materials used, production trends, the level of extraction, production costs, and others was not available.

Estate NC S-1 The organization shall provide an annual review of the replanting program, taking into account the plant materials used, production trends, the level of extraction, production costs, etc., based on the trend of the last 3 years operation.

The organization has provided information on land suitability study for the replanted area, but the annual review studies on the replanting program which includes consideration of plant materials used, production trends, the level of extraction, production costs, etc., based on the trend of the last 3 years operation are not available yet 19 March 2012 BSS has conducted the replanting program impact assessment which considering the plant material used from certified seed producer, production trend, extraction rate, production cost.

Closed 19/03/2012

2010.10

4.3 Controlling soil erosion and degradation - There are company's efforts to control soil erosion and degradation in the form of development of the silt-pit, terracing, U-shape frond stacking, and Nephrolepis sp planting on areas with a certain slope. However, the level of

Estate Minor S-1 Organization must be able to prove that efforts have been made in controlling soil erosion and degradation have been effective according to prevailing regulations (PP No. 150 of 2000).

There is not enough evidence that erosion controlling in all areas which are prone to erosion have been conducted, for example: the creation terracing and planting of legume in the replanting area; And yet it cannot be shown the evidence of its controlling effectiveness evaluation.

Closed 20/03/2012


ASSESSMENT REPORT

SPO – 4006a.4 Page 38


CAR No



Closing Date

effectiveness has not been evaluated yet.

For example: evaluation of erosion monitoring data in accordance with Regulation No.150 Year 2000 20 March 2012 BSS has shown the evaluation of land erosion management affectivity which contain in first and second semester environment management and monitoring (RKL/RPL) report.

2010.20

Major 4.6.4 Minor 5.3.1

Hazardous Waste management - Hazardous waste management procedures is available in the form of the draft document Hazardous Waste Handling Procedures Policy No: 709/TQEM-ESH/10, and organization already have a permit for hazardous waste temporary storage based on Bupati Decree No. 188.45/192/KUM/2010. But the procedures and their implementation has not referring to the regulation (Kep-01/Bapedal/09/1995 on Procedures and Technical Requirements for Waste Storage and Collection of Hazardous Waste). Example: Hazardous waste was found (in the estate) that are stored in warehouses that have not obtain permission.

Mill and

Estate

Minor S-1 The organization shall review the hazardous waste management procedures and its implementation, which refers to the regulatory requirements (e.g. Kep-01/Bapedal/09/1995 on Procedures and Technical Requirements for Waste Storage and Collection of Hazardous Waste).

Based on field visits, hazardous waste was found still stored in estate warehouses that have not obtain permission as per the KEP 01/Bapedal/09/1995 rules. For example: used pesticide packaging and used oil at the GKE and LTE Warehouse. The organization shall keep all hazardous wastes in a licensed place.

Closed 20/03/2012

2010.40

Minor 5.1.1

RKL / RPL Document - Most of the information on the RKL / RPL 1995 document is not consistent with the

Estate Minor S-1 BSS should revise the RKL / RPL 1995 document, by completing the information of

20 March 2012 BSS has environment monitoring and management plan (RKL/RPL and

Closed 20/03/2012


ASSESSMENT REPORT

SPO – 4006a.4 Page 39


CAR No



Closing Date

report document of RKL / RPL in 2009 and 2010, for example: replanting activities in 2010.

monitoring and management plan of replanting activities.

ANDAL) and social aspect based on replanting activity, explained in first and second semester of RKL/RPL report.

2010.45

Major 5.5.3 Major 7.7.3

SOP for Emergency Response - The company has been set in the Emergency Response SOP No. 033/BSS-SOP/10 about the response in case of fire outside and inside the estate. However, the SOP is not enough to explain some related matters, for example: preliminary information of fire, mechanism, personal that take the responsibility, the minimum equipment used, emergency simulation including preparedness of the equipment.

Estate Minor S-1 Companies must improve its land fire emergency response procedures that have been held; and socialize it effectively. For example: by doing land fire emergency response simulation periodically in each estate

20 March 2012 BSS has revised the emergency response SOP No.033/BSS-SOP/10 which explain the fire brigade unit organization, job and responsibility, land fire potential location, emergency meeting point, emergency sign arrangement. BSS has conducted the emergency simulation periodically for example on 11 October 2011 at Gunung kemasan estate followed by 13 peoples and lead by Gunung Kemasan Estate Manager.

Closed 20/03/2012


ASSESSMENT REPORT

SPO – 4006a.4 Page 40


3.5.2 Identification of Findings, Corrective Actions and Observations at Surveillance-1 Assessment

During the Surveillance-1 assessment 4 (four) nonconformities were assigned against Minor Compliance indicators and 9 (nine) 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 surveillance assessment.

CAR No



Closing Date

2012.01

Minor 4.7.4

Periodic checks for high risk workers. There is a periodic health examination data to 10 workers of Gunung Aru Mill on February 4, 2012 by a company doctor, such as, workers boiler operator, the operator of the cooking station, press operators, mechanics, but the results of the health periodic general examination just concluded as healthy and sick. Periodic medical examination is carried out over a year since the last inspection in October 2010 and is advised to conduct periodic health examinations in accordance with the Minister of Labour Regulation 2 of 1980 and corresponding inspection requirements of high-risk occupations.

Mill Minor S-2 BSS must conduct periodic medical examinations in accordance with the Minister of Labour Regulation no.2 of 1980 and corresponding inspection requirements of high-risk occupations

Open (minor)

2012.02

MB-SC 3.4

Supply chain model in the sales contract. BSS has shown Sales Confirmation document No.00132/BSS/KTR-MKS/LOK/II/2012 on February 1,

Mill Minor S-2 BSS must explain the supply chain model used in the sales contract documents in accordance with standard operating procedures that set Gunung Aru

Open (minor)


ASSESSMENT REPORT

SPO – 4006a.4 Page 41


CAR No



Closing Date

2012 which describes the trade name of the CPO (Crude Palm Oil) and Sales Contract documents No.00060/BSS/KTR-IKS / LOK/II/2012 on February 22, 2012 which describes the trade name of Palm Kernel, but does not explain the supply chain model that is used in accordance with standard operating procedures that set Gunung Aru Mill Mass Balance models in the supply chain.

Palm Oil Mill Mass Balance models in the supply chain.

2012.03

MB-SC 4.1

Supply chain models and CPO certified in the invoice. BSS has to make sure all invoices are issued for shipments of palm oil contains the necessary information such as invoice No.PDN/00226/BSS/III/2012 for CPO products that describe The name and address of purchaser, date of issuance of invoice, a description of the product, the amount of product shipped , references to documents relating to transportation. However, the invoice does not describe information about the proficiency level supply chain models are used and that the product is RSPO certified.

Mill Minor S-2 BSS must explain the information in the invoice and supply chain model RSPO certified products are used in accordance with standard operating procedures that set Gunung Aru Mill Mass Balance models in the supply chain.

Open (minor)

2012.04

MB-SC 6.1

RSPO certified palm oil claims. Gunung Aru Mill, PT.BSS not able to show the use of claims to support the

Mill Minor S-2 Gunung Aru Mill, PT.BSS uses the claim to support the RSPO certified palm oil in both sales and

Open (minor)


ASSESSMENT REPORT

SPO – 4006a.4 Page 42


CAR No



Closing Date

RSPO certified palm oil in both sales and purchase documents, according to the RSPO Guidelines for Communication and Claims.

purchase documents, according to the RSPO Guidelines for Communication and Claims

3.5.3 Opportunity for Improvement

No Ref Std Descriptions

1 1.1 Companies are can improves on well document control in order to expedite the process of providing information.

2 Major

4.1.1

BSS had opportunity for improving to summarize policy number and endorsement in the appendix a summary of the PT.BSS. Standard Operating

Procedures Document Type

3 Major

4.6.4

BSS had opportunity to evaluate hazardous materials (B3) symbols and arrangement in the Laut Timur Estate Chemicals warehouse

4 Major

4.7.1

BSS had opportunity for reviewing the OHS (K3) activities such as monitoring, especially in the implementation of the use of PPE and review the need for

warning signs, especially in the mill workplace

5 Major

5.2.3

BSS may improving the installation of warning signs with reference to existing rules tailored to the type of rare or endangered species and their habitats.

6 5.3 Companies are advised to add the PPE, Fire Extinguisher, Used Pallets for waste oil and a symbol of Hazardous Material and hazardous waste temporary

warehouse in Laut Timur Estate.

7 Minor

5.5.1

BSS had opportunity for improving the fulfillment of land fire facilities and equipment.

8 Minor

6.1.1

BSS had opportunity for integrated a management plan and monitoring of the Social Impact Assessment in 2010 through a program that refers community

development / company social responsibility program that oriented towards socio-economic empowerment of communities surrounding the plantations.

9 SC BSS has received RSPO certification and may use the RSPO logo in the scope of PT Bersama Sejahtera Sakti to support the RSPO certified palm oil

according to the RSPO Guidelines for Communication and Claims


ASSESSMENT REPORT

SPO – 4006a.4 Page 43


3.5.4 Noteworthy Positive Components

No Ref Std Descriptions

1 Minor

4.5.2

Implementation of Integrated Pest Management has been implemented properly by the company

2 4.7 BSS has endeavored to fulfillment facilities such as Health and Safety Fire Extinguisher, Hydrant and First Aid box provided on each estate and the mill in

adequate amounts.

3 6.2 Relationships and perceptions of the surrounding villages that have been going well

4 Major

6.5.1

The Company has provided wages in accordance with government regulations (Decree of the Governor of South Kalimantan Province Sector Minimum

Wage)

5 Minor 6.5.1 Company's facilities and infrastructure are sufficient (Street, Clinics, Schools, Sports Facilities, etc.)


ASSESSMENT REPORT

SPO – 4006a.4 Page 44


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

Public Issues (Institution/ NGO/Community)

Management Responses Auditor Responses

Environment Bodies of Kotabaru District In general, companies have doing well in managing the environment. Reporting the implementation of the RKL / RPL PT BSS has been routinely performed. BLHD Kotabaru has assessed PROPER for the predicate BLUE PT BSS for 6 times the assessment. In the case of B3 waste management, the company has obtained a temporary storage area B3 waste and waste balance sheets have been reported periodically since 2010. For liquid waste management, the company has obtained land application of wastewater permits utilization of Kotabaru Environment Body. However, based on the results of the visit Kotabaru Environment Body team found that pond of Gunung Aru Mill WWTP precipitation has occurred that requires dredging sludge that is generated throughout the volume of waste deposited, in addition to the access road around the WWTP pond is not well maintained, for example: there are many wild plants around WWTP area. Liquid waste management is reported together with the reporting of RKL / RPL. For wastewater quality monitoring and monitoring wells have been tested by the companies sampled once every 1 month by BARISTAN, but Kotabaru Environment Body suggest testing should be done by BTKL (Institute of Environmental Health Engineering) or Banjarmasin Health Laboratory.

For air emission testing has been done by the company but to test the odor has not been done even if Kotabaru Environment Body recognize that to test the odor cannot be done by institution

In 2010 there were complaints of pollution of the river Bekambit as a source of drinking water (river grade 1) by Association of Laut Timur Head Village (especially the Chief of Langkang Baru and Bekambit Asri, where the two villages is not traversed by the river of Bekambit). Has to be checked by BLHD Kotabaru and stated that the river is a river Bekambit class 3 (only fit for use for the toilets, not for drinking). On the other hand, the company then has made Swimming / Dam Shelter drinking water based on the submission of the village government.

The company has 5 Waste water treatment ponds. Dredging activity pond number 4 and 5 has been carried out by the end of 2011. To another pond, have a depth of 8 meters (standard 4 meters) so it does not require dredging activities. For third pond still in the stage of dredging using suction tank cars, to be applied directly to the land next.

The company plans to conduct further testing to the agency that referred Kotabaru Environment Body, but for the month of March will already be implemented by Standardization Research Body (Baristan).

Based on a review of the EIA document PT BSS, river Bekambit categorized as class 2 rivers, while Tim BLHD categorized as grade 3 rivers. River class 2 and class 3 rivers is not fit for use as drinking water sources (PP no.82/2001). The audit team visited the river and found no activity that uses river water as drinking water sources by the community. However, there are making dams / water storage pond for drinking water sources, as a form of corporate concern, and was well received by members of the community.

Based on a field trip to a wastewater treatment plant at Gunung Aru WWTP pond number 3 was dredged using a suction pump, while the ponds of numbers 4 and 5 have been completed dredged.

Ignorance of the company against the revocation of accreditation BARISTAN by National Accreditation Committee (KAN) occurs because of a lack of communication between the company and BLHD Kotabaru. However, the company plans to conduct testing of wastewater quality samples next to the examining body designated by BLHD Kotabaru.


ASSESSMENT REPORT

SPO – 4006a.4 Page 45




Kotabaru District Agriculture Agency.

In the case of routine reporting Plantation Activity Report (LKUP), Report of the factory CPO production, etc. are routinely carried out but for the reporting period LKUP especially in the second half of frequent delays in delivery. The company has also actively participated in the discussion meeting on FFB pricing is done every 1 month at the Plantation Office of South Kalimantan Province. Kotabaru District Agriculture Agency. had engaged in Plantation Categorization Rating assessment for PT BSS in 2009 with class 3 For plasma partnership, the company has secured licenses covering an area of 2.330 ha by Decree of the Kotabaru District Agriculture Agency

The company will try to deliver schedule LKUP from Agriculture Agency, while still pay attention to the warnings from Agriculture Agency.

The company has been awarded a decree of the Regent to prospective farmers and licenses covering an area of 2.330 ha from Plantation Office District. Kotabaru for the opening of the plasma. Location to the plasma will look for by the local government, with the possible locations in the area of Industrial Plantation Forest (HTI). In addition, the company also has a MOU with the Sajakah Makmur Cooperative to the opening of the plasma, where the PT. BSS acts as avails / funder for the construction of the plasma plantation, with a proprietary system is Land Use Rights (HGU) certificate on behalf of the Village Cooperative Unit.

Agriculture Agency of Kotabaru District plans to conduct an assessment of plantation class in 2012.

There is a memorandum by the Bersama Sejakah Makmur Cooperative and the decree of the Regent regarding with plasma plantation program, demonstrate the commitment and concern of the company against the wishes of local communities to improve their living standards.

In the future, the presence of plasma plantations will be able to assist companies in providing FFB to Gunung Aru Mill

National Land Agency PT BSS is a pioneer of the oil palm plantations in Kotabaru, especially the Pulau Laut. PT BSS already have a document control and a clear concession to the law, but there are cases of land claims made by Mrs. Al Fisah CS Ha area of ± 1.100. Claim area in the Communal Land Rights community. To this BPN is suggested to PT BSS to be able to manage the issue by considering the interests of both sides, because it can affect Land Use Rights /HGU permit consideration of granting an extension.

Beginning in 2010, there were land claims by Alfisah, where the vast site in the claims is unclear. Starting from claims covering 1.100 ha, decreased to 439 ha, and the last 221.39 ha. Last Meeting 1 March 2012 in the regent with the result: an area of 221.39 ha is recommended for inclusion in the plasma program, which will look for a location to the plasma by the local government Kotabaru. Funding for the plasma guaranteed by the company. Claimants also wish to set up their own Village Cooperative Unit.

PT. BSS Proposed Plantation and Plasma Name (Estate

The company has been addressing the issue of land claims in accordance with the regulations / laws in force and also through consultation initiated by the District government Kotabaru, so that finally there is a decision that is acceptable to all parties.


ASSESSMENT REPORT

SPO – 4006a.4 Page 46




of Makmur Bersama/MBE), total area: 2330 ha, consisting from: an area of 498 HCV, 64 Ha & Field covering an area of 1831, 36 ha (Letter Number: Plasma - GM/048/XII/2011/s, dated January 2 2012).

Current Situation of Oil Palm Development Project partnership between PT. BSS with Bersama Sejakah Makmur Village Cooperative Unit.

Proposed Activities Early Progress of Plasma (No. EBM-GM KKPA/001/II/2012/s, dated February 1, 2012)

Work Plan Preparation Oil palm Development Partnership between PT. BSS with BSM Village Cooperative Unit (Period February 2012 - June 2012). Budget Plan Period February 2012 - June 2012 for the Project Partnership PT. BSS with KUD BSM

Social, Labour and Transmigration Agency of Kotabaru District

PT BSS has routinely done every employment report once a month. The Company also has demonstrated a commitment to the fulfillment of the rights of workers, for example: wages in accordance with UMSP of Rp. 1,250,000, _ (excluding in kind), working time and overtime. The company has also facilitated the workers with adequate Personal Protection equipment other than that the company has been formed and registered OHS Guiding Committee organizational structure to Social, Labour and Transmigration Agency Kotabaru District and re-register the event of changes in organizational structure. For the periodic health check of labor performed at least once a year, but for years the period of 2012 have not

The company has provided regular reports OHS Guiding Committee least every 3 months, each month was made by a plantation site. The last position report OHS Guiding Committee is a company that reported for the period 07 February 2012. There is evidence of receipt of documents.

The company is run in accordance with the provisions of UMR UMSP (Plantation Sector Minimum Wage) plus rice kind of workers with the provisions of 0.45 kg / day, the wife of 0.3 kg / day, children 0.2 kg / day, where children covered up to 3 people.

The company has been regularly providing employment related reports, and in compliance with regulations regarding UMSP.

Based on the study of documents, for the periodic health examination activities of employees, especially employees of the factory are still performed in more than one year.


ASSESSMENT REPORT

SPO – 4006a.4 Page 47




reported the results of the health check to the Social, Labour and Transmigration Agency For licensing and plantation equipment manufacturing operations have been met by the company, for example: permission boiler, engine generators, tractor operator, heavy equipment, boiler operator etc...

Sejakah Village Chief (Murhan)

Village Sejakah a guided village of Laut Timur Estate (LTE) PT. BSS.

In the village Sejakah there are 9 RT, 5 RT entries into the PT. BSS.

In 2005 there is help for roads repair and water reservoirs manufacture from PT. BSS in cooperation with local government to the village Sejakah Kotabaru.

With the PT. BSS, the road access is open.

Open employment for villagers who formerly worked mostly as shifting cultivators.

There are approximately ± 20 Sejakah Village residents work in PT. BSS.

Assistance has been routinely provided by PT. BSS, such as; fund Community Development (CD) Rp. 500,000 / month and help the animal sacrifice during Eid al-Adha.T

Planned to develop plasma estate in Sejakah Village

Help regular CD program has been received once / 3 months role in the form of goods, in accordance with the agreement of villagers.

Help to clean water, in the form of the water tank.

The relationship with the villagers had been harmonious and part of RT (5 RT) Village Sejakah belongs into the plantation area of PT. BSS.

In general, the results of interviews with the village chief and some residents in the village of Sejakah, there are no problems between the village with the PT. BSS due to the interaction with the corporate village is long overdue, and some villagers have been working at PT. BSS.

Villagers feel they are receiving the ease with the opening of access roads through the PT. BSS plantation so that the distance and travel time to Kotabaru quiet shorter

Tanjung Pengharapan Village chief and secretary (Musrifin & Abdul Jalil)

Tanjung Pengharapan village is guide village from Pantai Timur Estate PT. BSS.

Assistance has been routinely provided by PT. BSS, among others; fund Community Development (CD) Rp. 500,000 / month and help the animal sacrifice during Eid

Village Pengharapan that is located on the coast is one area where some staff of PT. BSS takes vacation (fishing) and is one of the suppliers of fresh fish to the Pantai Timur Estate (PTE).

In general, the results of interviews with village chief and secretary to the village of Tanjung Pengharapan, there are no problems between the village with the PT. BSS due to the interaction with the corporate village is long overdue, and some villagers have been working at PT. BSS.


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SPO – 4006a.4 Page 48




al-Adha.

Other assistance is repair the village road.

There is a school bus transportation from PT. BSS for elementary school children

There are some villagers who were working at PT. BSS and have felt the benefits of working as an employee with a steady income, different if it works as a fisherman with an uncertain income.

There is a contractor from village in cooperation with PT. BSS, e.g. for the manufacture of water channels and creation harvesting bridge. Villagers may take advantage of health clinics in the Division 2 Pantai Timur Estate (PTE) PT. BSS.


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Appendix 1. Peer Review Report

Name of Reviewer:

I. General comments on the evaluation

No Issues and Comments Clarification/explanation

TO BE FILLED IN BY MUTU

Report follow RSPO report template and contain adequate information.

II. General comments on the inspection report



III. Specific comments on the proposed certification decision, including any reconditions, conditions or recommendations




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Appendix 2. Result of RSPO Committee - RSPO Certification

No Input and Responses


ASSESSMENT REPORT


Appendix 3. List of Stakeholder Contacted in the RSPO Certification Process

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

Date of Contact

1 Badan Pertanahan Nasional Kabupaten Kotabaru (Kotabaru Land Agency)

Jl. Veteran No. 15 Kotabaru 72116 -

Letter (Fax)

March 14,

2012

2 Badan Lingkungan Hidup Daerah Kabupaten Kotabaru (Kotabaru Environment Body)

Jl. Transmigrasi No. 94 KM. 3,5 Kecamatan Simpang 4 72271

[email protected] Letter (Fax)

March 14,

2012

3 Dinas Perkebunan Kabupaten Kotabaru (Kotabaru Plantation Agency)

Jl. Dharma Praja No. 2 Gunung Tinggi

05186076051 Letter (Fax)

March 14,

2012

4 Dinas Kehutanan Kabupaten Kotabaru (Kotabaru Forest Agency)

Jl. P. Kesuma Negara Kotabaru 72116 KalSel

Letter (Fax)

March 14,

2012

5 Dinas Sosial, Tenaga Kerja dan Transmigrasi Kabupaten Kotabaru (Kotabaru Labour,Social and Transmigration Agency)

Jl. Dharma Praja No. 4 Gunung Tinggi, Kecamatan Batu Licin

05186076012 Letter (Fax)

March 14,

2012

6 Gunung Aru Village Head Desa Gunung Aru -

Location Interview

March 21,

2012

7 Sejakah Village Head Desa Sejakah -

Location Interview

March 21,

2012

8 Tanjung Pengharapan Village Head and Secretary

Desa Tanjung Pengharapan -

Location Interview

March 21,

2012

9 LAMAS NGO Jl. H. Agus Salim Kotabaru -

By Phone

March 21,

2012


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Appendix 4. Assessment Plan

DATE March 18th – 23rd 2012

PLANNED TIME ACTUAL

DURATION PROCESSES / CLAUSES TO BE AUDITED AUDITOR

18.03.2012 06.00-11.30 11.30-12.30 12.30-18.00

06.00-10.30 11.30-12.30 13.00-14.30

Travelling from Jakarta to Banjarmasin Travelling from Banjarmasin to Kotabaru Travelling from Kotabaru to Site

ALL TEAM

19.03.2012 08.00-12.00

08.30-12.00

08.00-12.00

08.00-09.00 09.00-12.00

Public Consultation with Goverment & NGO’S ; & Document Review at Kotabaru Opening Meeting at estate office Observation Documentation in e.g. Commitment to long-term economic and financial viability (3.1), Use of appropriate best practices by growers and millers (4.1; 4.2; 4.3; 4.4; 8.1; 8.2) Supply Chain verification Documentation review e.g. Commitment to transparency (1.1; 1.2), Compliance with applicable laws and regulations (2.1; 2.2; 2.3) Responsible consideration of employees and of individuals and communities affected by growers and mills (6.1; 6.2; 6.3; 6.4; 6.5)

OR/RR

OCT/ISP/RR

ISP/OCT/OR

OR/RR

12.00-13.30

12.00-13.30

13.

Lunch/Pray

13.30-17.00

13.30-17.30

Documentation Review e.g. Use of appropriate best practices by growers and millers (4.5; 4.6; 4.7; 4.8), Responsible development of new plantings (7.2; 7.3; 7.4) Supply Chain verification Environmental responsibility and conservation of natural resources and biodiversity (5.1; 5.2; 5.3; 5.4; 5.5; 5.6), Responsible development of new plantings (7.1; 7.3; 7.5; 7.7) Supply Chain verification Responsible consideration of employees and of individuals and communities affected by growers and mills (6.6; 6.7; 6.8; 6.9; 6.10; 6.11), Responsible development of new plantings (7.1; 7.5; 7.6)

OR/RR

ISP/OCT/RR

OCT/RR

OR/RR


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DATE March 18th – 23rd 2012

PLANNED TIME ACTUAL

DURATION PROCESSES / CLAUSES TO BE AUDITED AUDITOR

20.03.2012 08.00-12.00

12.00-13.30 13.30-17.00

08.00-12.30

12.30.14.00 14.00-17.00

Document Review & Company Respon to Public Consultation Countinued Documentation Review e.g. Use of appropriate best practices by growers and millers (4.5; 4.6; 4.7; 4.8), Responsible development of new plantings (7.2; 7.3; 7.4) Supply Chain verification Environmental responsibility and conservation of natural resources and biodiversity (5.1; 5.2; 5.3; 5.4; 5.5; 5.6), Responsible development of new plantings (7.1; 7.3; 7.5; 7.7) Supply Chain verification Responsible consideration of employees and of individuals and communities affected by growers and mills (6.6; 6.7; 6.8; 6.9; 6.10; 6.11), Responsible development of new plantings (7.1; 7.5; 7.6) Lunch/Pray Countinued of Document Review in e.g. Commitment to long-term economic and financial viability (3.1), Use of appropriate best practices by growers and millers (4.1; 4.2; 4.3; 4.4; 8.1; 8.2) Supply Chain verification Documentation review e.g. Commitment to transparency (1.1; 1.2), Compliance with applicable laws and regulations (2.1; 2.2; 2.3) Responsible consideration of employees and of individuals and communities affected by growers and mills (6.1; 6.2; 6.3; 6.4; 6.5)

ALL TEAM

ISP/OCT/RR

OCT/RR

OR/RR

OCT/ISP/RR

ISP/OCT/OR

OR/RR

21.03.2012 08.00-12.00

12.00-13.30

13.30-17.00

08.00-12.00

12.00-13.30

13.30-17.30

Field Visit (Mill and Estate) Lunch/Pray Field Visit (Mill and Estate)

ALL TEAM

22.03.2012 08.00-12.00

12.00-13.30

13.30-17.00

08.00-10.30

12.00-13.30

13.30-16.00

Preparing CAR and Clarification Lunch/Pray Closing Meeting and Travelling to Kotabaru

ALL TEAM

23.03.2012 12.15-12.45 15.35-16.10

12.00-13.00 15.35-17.00

Travelling to Banjarmasin Back to Jakarta

ALL TEAM


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Appendix 5. Glossary

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

APAR : Alat Pemadam Api Ringan (Fire Extinguisher)

APD (PPE) : Alat Perlindungan Diri (Personal Protective Equipment)

B3 : Bahan Beracun and Berbahaya (Hazardous Material Waste)

BLHD : Badan Lingkungan Hidup Daerah (District Environment Body)

BOD : Biological Oxygen Demand

BPN : Badan Pertanahan Nasional (National Land Agency)

BSS : PT. Bersama Sejahtera Sakti

CD : Community Development

CPO : Crude Palm Oil

CSR : Coorporate Social Responcibility

GAE : Gunung Aru Estate

GAF : Gunung Aru Factory

GKE : Gunung Kemasan Estate

HACCP : Hazard Analysis Critical Control Point

HCV : High Conservation Value (Nilai Konservasi Tinggi)

HGU : Hak Guna Usaha. (Land Use Permit)

IUP : Izin Usaha Perkebunan. (Plantation Operation Licence)

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

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

K3 (OHS) : Keselamatan dan Kesehatan Kerja. (Occupational Health and safety)

KLH : Kementrian Lingkungan Hidup (Environment Ministry)

LC : Land Clearing

LTE : Laut Timur Estate

OER : Oil Extraction Rate

P2K3 : Panitia Pelaksana Keselamatan and Kesehatan Kerja ( Occupational Health and safety Guiding Committee)

PHT : Pengendalian Hama Terpadu (Integrated Pest Management)

PK : Palm Kernel

PKO : Palm Kernel Oil

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

PP : Peraturan Pemerintah (Government Regulation)

PTE : Pantai Timur Estate

POM : Palm Oil Mill

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

PSD : Plantation Services Departement

PSQM : Plantation Sustainability and Quality Management

SOP : Standard Operating Procedure

SP : Serikat Pekerja (Worker Union)

SPK : Surat Perjanjian Kerja (Minutes of Agreement)

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

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