rspo annual surveillance assessment1 public ......revision no.. pt. tÜv no.rd indonesia audit...

PT. TÜV NO.RD Indonesia

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FRSPO-TNI-05-R2-Audit Report-ANJA_ASA1_(Reviewed)

RSPO ANNUAL SURVEILLANCE ASSESSMENT1

PUBLIC SUMMARY REPORT

PT. TÜV NORD Indonesia

System Certification Management

Has assessed

PT. AUSTINDO NUSANTARA JAYA AGRI

< Binanga Mill and its Supply Bases>

for Compliance to RSPO Principles and Criteria

for Sustainable Palm Oil Production

Date of assessment:

September 2 to 7, 2013

Report Number: P&C-I-131

Head Office

System Certification Management

Perkantoran Hijau Arkadia Tower F,

7th Fl Suite 706

Jl. Let. Jend. TB Simatupang Kav. 88

Jakarta 12520 – Indonesia

Tel : +6221 7883 7338

Fax : +6221 7883 7336

Laboratory Division

Jl. Jababeka XVII E Blok U No.. 27B

Kawasan Industri Jababeka I Cikarang Bekasi 17530 – Indonesia

Tel : +6221 898 403 18 – 19

Fax : +6221 898 403 20

Branch Office

Intiland Tower 11th

Fl, Suite 1E

Jl. Panglima Sudirman 101-103

Surabaya 60271 - Indonesia

Tel : +6231 53 444 54

Fax : +6231 53 4 44 82

President Director:

Mr. Robert Napitupulu

Email: [email protected]

Website: www.tuv-nord.com or www.tuev-nord.de

mailto:[email protected]

http://www.tuv-nord.com/

http://www.tuev-nord.de/


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List of Contents

1. Scope of Surveillance Assessment Report ........................................................................................................ 4

1.1 Type of Assessment (Mill, Estate and Mill, etc.) ................................................................................... 4

1.2. Location, mill, and or hectare statement ............................................................................................... 4

1.3. Production volume of all certified products....................................................................................................... 7

1.4 Certification details ......................................................................................................................................7

1.5. Description of Supply Base ................................................................................................................... 7

1.5.1. Description of Plantation (Fruit Sources) ............................................................................................ 7

1.5.2 Replanting program .............................................................................................................................. 8

1.6. Progress of Time-bound Plan (for other management units and justifications). ................................... 8

1.7. Organizational Information/Contact Person .......................................................................................... 8

2. Assessment Process .......................................................................................................................................... 8

2.1. Assessment Methodology (Program, Site Visits) .................................................................................. 8

2.1.1. General Overview................................................................................................................................ 8

2.1.2 Assessment Agenda ............................................................................................................................ 9

2.2. Assessment Team ............................................................................................................................... 10

2.2.1. Lead Assessor: Wieke Savitri ........................................................................................................... 10

2.2.2. Assessment Team Members ............................................................................................................ 11

2.3. Certification Body ................................................................................................................................ 12

3. Assessment Findings ....................................................................................................................................... 12

3.1. Summary of the Findings by Criteria ................................................................................................... 12

3.2. Identified Non Conformances and Noteworthy positive components. ................................................ 24

3.2.1. Detail of Non Conformity. .................................................................................................................. 24

3.2.2. Resume of Audit Results .................................................................................................................. 25

3.3. Status of non-conformities (both minor and major) previously identified ............................................ 26

3.3. Issues Raised by Stakeholders ........................................................................................................... 26

4. Certified Organization’s Acknowledgement of Internal Responsibility ............................................................. 27

4.1. Date of next surveillance visit .............................................................................................................. 27

4.2. Date of closing non-conformities (both major and minor) ................................................................... 27

4.3. Formal Sign-off of Surveillance Assessment Findings ........................................................................ 28


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List of Figures

Figure 1a. Maps of Binanga Mill and Supply Bases........................................................................................5

Figure 1b. Maps of Plantation Blocks .............................................................................................................6

List of Tables Table 1-1 Location of the mill and supply bases ...........................................................................................................................4

Table 1-2. Production volume of CPO and PK to be claimed................................................................................... 7

Table 1-3: Production volumes of FFB and its source.............................................................................................. 7

Table 1-4:. Statistic of supply base..................................................................................................................... . 7

Table 1-5: Replanting program for Each Estate ..................................................................................................... 8

Table 1-6 Progress of Time bound plan for mills and estates under PT. Austindo Nusantara Jaya Agri..................8

Table 2-1 Audit Schedule ........................................................................................................................................... 9

Table 3-1 Summary of Findings by Criteria ......................................................................................................... 13

Table 3-2 Resume of Audit Results ......................................................................................................................... 25

List of Appendices

Appendix 1 List of Abbreviations ........................................................................................................................ 29

Appendix 2 Summary of the findings for compliance with the RSPO Supply Chain Module E (Mass Balance) ver.

November 2011 .................................................................................................................................................. 30

Appendix 3 Summary of Non-Conformity Report (NCR) P & C...........................................................34


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1. Scope of Surveillance Assessment Report

1.1 Type of Assessment (Mill, Estate and Mill, etc.)

Binanga Mill is supplied by three (3) own estates, i.e. East Estate, Central Estate and West Estate , which

are under PT. Austindo Nusantara Jaya Agri known as ANJA.

The annual surveillance assessment was done as per National Interpretation of RSPO Principle and

Criteria for Sustainable Palm Oil Production - Republic of Indonesia (RSPO Indonesian National

International <INA-NI. ver. May 2008 Standard), as well as RSPO Supply Chain Standard for Mills (module

E: Mass Balance) ver. November 2011.

The scope of this annual surveillance assessment 1 was for Binanga Mill and its supply bases, i.e.Central Estate

and West Estate, while East Estate will be assessed in the next surveillance assessment. The mill also

processes third party FFB, but they are not included in this assessment.

1.2. Location, mill, and or hectare statement

. The detail of coordinate’s location can be seen in the table below:.

Table 1-1: Location of the mill and supply bases

Name of Mill and Plantation

Location Coordinates

Longitude (N) Latitude (E)

Binanga POM Simangambat District, Padang Lawas Utara (PALUTA) Regency, North Sumatera

01°28’754 99°57’’483”

East Estate* Simangambat District, Padang Lawas Utara (PALUTA) Regency, North Sumatera

01°30’321” 99°58’526”

Central Estate Simangambat District, Padang Lawas Utara (PALUTA) Regency, North Sumatera, and

Huristak District, Padang Lawas (PALAS) Regency, North Sumatera

01°28’ 814” 99°57’502”

West Estate Huristak District, Padang Lawas (PALAS) Regency, North Sumatera

01°25’ 977” 99°52’ 265”

*Note : did not assessed in this surveillance audit


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Figure 1a. Maps of Binanga Mill and Supply Bases

LOCATION OF

PT. ANJ AGRI

BINANGA


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Figure 1b. Maps of Plantation Blocks


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1.3. Production volume of all certified products

The production tonnages for CPO and PK for period of certificate and projected output are listed in Table 1-2.

(These figures exclude any output product from non-certified suppliers).

Table 1-2. Production volume of CPO and PK to be claimed

Name of mill Certification volume Projected production 2012

(tonnes)

Actual production 2012

(tonnes)

Projected production 2013

(tonnes)

CPO PK OER CPO PK OER CPO PK OER

Binanga Mill 60 ton FFB/ hour

44,538 10,232 23.3 57,242 13,890 22.3 61,100 13,000 23.5

*Source data: Based on production report 2012, and budget report 2013 1.4. Certification details

PT. Austindo Nusantara Jaya Agri RSPO membership number: 1-0032-07-000-00

Binanga Mill Unit Certificate number :TNI-RSPO-K-1215

Date of previous assessment: March 4-11, 2012

Date of certification approved/ issued: 14 November 2012

1.5. Description of Supply Base

1.5.1. Description of Plantation (Fruit Sources)

Oil palm fruit is sourced from company owned estates and third party. The certified FFB counted from 3 (three)

company owned estates is listed in Table1-3.

Table 1-3: Production volumes of FFB and its source

Sources of FFB

Actual Production volume of FFB

in 2012

(tons)

%

Projected Production volume of FFB

in 2013

(tons)

%

Total FFB own estates 256,891 85.36 260,000 81.25

FFB purchased 44,053 14.64 60,000 18.75

Total FFB Processed 300,944 100.00 320,000 100.00

Table 1-4. Statistic of supply base.

Estates

Area Summary

Planting year Total

(Ha)

Planted

with Oil Palm (Ha)

Mature

(Ha)

Immature

(Ha)

East Estate 3,082.90 3,065.51 3,065.51 0 1988 – 1997

Central Estate 3,095.47 3,007.33 3,007.33 0 1990 – 1999

West Estate 3,233.58 3,217.12 3,217.12 0 1993 – 2005

Total 9,411.95 9,390.06 9,289.96 0

Source : Hectare statement in August 2013


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1.5.2 Replanting program

Table 1-5. Replanting program for Each Estate

Year of

Replanting

Area

to be planted (Ha)

East Estate Central Estate West Estate Total area to be

planted (Ha)

2013 0 0 0 0

2014 0 0 0 0

2015 0 102.81 0 102.81

2016 214.40 682.19 0 896.59

2017 259.83 726.25 0 986,08

TOTAL 474.23 1,511.25 0 1,925.48

1.6. Progress of Time-bound Plan (for other management units and justifications).

The company will use the experience obtained in the main assessment to ensure that the other

management units conform to the RSPO principles and criteria. Progress of this plan of time-bound

certification has been verified. There were some changes made from the previous time bound plan due to

technical condition in each management unit. The updated time bound plan is can be seen in Table 6a and

6b.

Table 1-6. Progress ofTime bound plan for mills and estates under PT. Austindo Nusantara Jaya Agri:

No

Name of Mil& Supply base

Supply Base

Company of Mill

Location

Proposed Time

Certification

Revised time

bound plan 2013

1 Siais mill & plantation

PT. ANJA Siais Siais Village, Angkola Selatan District, Tapanuli Selatan Regency,nOrth Sumatera Province, Indonesia

2013 2013

1.7. Organizational Information/Contact Person

Contact Person Philip Liu C.K

Position Head of Operations

Organization name PT Austindo Nusantara Jaya Agri ( ANJ Agri) Binanga

Address Perumahan Sahabat Mewah dan Makmur, Desa Jangkang Kec. Dendang, Kabupaten Belitung Timur, Bangka Belitung, Indonesia

Group name if applicabe PT. Austindo Nusantara Jaya

Country Indonesia

Telephone Nr +62 61 4537480

Fax Nr +62 61 4538566

Email [email protected]

2. Assessment Process

2.1. Assessment Methodology (Program, Site Visits)

2.1.1. General Overview

The assessment was carried out by referring to TÜV NORD Indonesia Certification Procedure, PRSPO-TNI-01

Rev. 1, dated 01.04.2013.


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2.1.2 Assessment Agenda

The annual surveillance assessment was conducted on September 2 to 7, 2013 for Binanga Mill, Central Estate

and West Estate while East Estate was not assessed in this first surveillance assessment, which led by

Ms. Wieke Savitri (WS) as lead auditor, Ms. Anita Masduki (AM) as auditor and was assisted by Mr. Ujang

Sehabudin (US) as social expert and Mr. Dr. Supijatna (SUP) as Agronomy expert.The audit schedule available

as below.

Table 2-1 Audit Schedule

Date / Time1)

Site / Shift / Organizational

Unit

Auditor (Abbrev.) P&C Explanation

Day-1 : 02.09.2013 - Traveling from Jakarta to ANJA Binanga

Day-2 : 03.09.2013: Central Estate

08.00 – 09.00

Central Estate

ALL - Opening Meeting

- NCR previous audit review (evidence verification)

09.00 – 16.00

AM &US

- 1.1, 1.2, 2.1

- 4.7 – 4.8

- 6.1-6.11

- Requests of info and responses, legal for OHS and Social

- OHSAS & Training

- SIA, Communication, Complaint, Customary, Wages,Trade Union, Anti Child Labor, Discrimination, Sexual Harrasment, Payment to Outgrower, CSR

WS & SUP

- 2.1, 2.2, 2.3, 3

- 4.1 – 4.6

- 5.1 – 5.6

- 8

- Regulation compliance, land-use right, customary right, actual and budgeted production

- GAP, Water Management, IPM, Agrochemicals.

- EIA, HCV, Burning Issues, Waste Mgt,

- Continual Improvement

16.00 -17.00 - Auditor Review

Day-3: 04.09.2013: West Estate

08.00 – 09.00

ALL - Opening Meeting

- NCR from previous audit (evidence verification)

09.00 – 15.00

AM & US

- 1.1, 1.2, 2.1

- 4.7 – 4.8

- 6.1-6.11

- Requests of info and responses, Legal for OHS and Social

- OHSAS & Training

- SIA, Communication, Complaint, Customary, Wages,Trade Union, Anti Child Labour/ Discrimination/Sexual Harrasment, Payment to Outgrower, CSR

WS & SUP

- 2.1, 2.2, 2.3, 3

- 4.1 – 4.6

- 5.1 – 5.6

- 8


- GAP, Water Management, IPM, Agrochemicals.

- EIA, HCV, Burning Issues, Waste Mgt,

- Continual Improvement

16.00 -17.00 ALL - Auditor Review

Day-4: 05.09.2013 : Binanga Mill

08.00 – 09.00

ALL - - Opening Meeting

- NCR from previous audit review (evidence verification)

09.00 -12.00 WS, AM, US, SUP

- 4.1, 4.7, 4.8

- 5.3, 5.4 & 5.6

- SCC

- Mill SOP, OHSAS, Training

- Hazardous waste management, Renewable Energy, Water usage

- Supply chain standard


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Date / Time1)

Site / Shift / Organizational

Unit

Auditor (Abbrev.) P&C Explanation

13.30 – 16.00 ALL

- 1.1, 1.2, 2.1

- 2.1, 2.2, 2.3, 3

- 6.1-6.11, 8

- Request of info and responses


, SIA, Communication, Complaint, Customary, Wages,Trade Union, Anti Child Labour/ Discrimination/Sexual Harrasment, Payment to Outgrower .- Continual Improvement

16.00 -17.00

ALL

- - Auditor Review & Reporting

Date / Time1)

Site / Shift / Organization

al Unit

Auditor (Abbrev.)

P&C Explanation

Day-5 :06.09.2013: Binanga Mill

08.00 -10.00 ALL - Closing Meeting

Day-6: 07.09.2013 Travelling back to Medan and continue to Jakarta

2.2. Assessment Team

2.2.1. Lead Assessor: Wieke Savitri

Qualification Compliance

Educational Background

Has a bachelor degree from Agriculture Faculty, Bogor Agricultural University Yes

Working Experience

1995-1997: PUPUK Foundation (Perkumpulan Untuk Peningkatan Usaha Kecil,

A Non Government Organization for promoting small scale enterprises supported and financed by GTZ-Germany and Swiss Contact, as Management Consultant. Responsibilities : To arrange projects regarding business management, human resources, marketing and IT to promote small scale enterprises.

1997-2004: PT. Varia Industri Tirta and PT.Tirta Investama.

Bottled water companies under Danone management as Quality Control Manager/ Quality Assurance Manager/ Internal Auditor and Trainer. Responsibilities : deliver training and implementing management systems for ISO 9001, ISO 14001, HACCP, GMP, ISO 22000, 5S, QCC, SPC

1997-2004: Danone-Aqua Foundation as Associate Representative in factory. Responsibilities: to develop community development programs for people living around factory.

2004- 2005: PT. Tribina Mediartha Sarana. A consulting company, as a Consultant and

Trainer. Responsibilities : deliver training and consultancy for companies and organizations for ISO 9001, ISO 14001, SMK3, HACCP, GMP, ISO 22000, 5S, QCC, SPC

2005-2006: PT. Global Certification Indonesia. Certification Body based in UK as Operations Manager. Responsibilities: Running daily operation and reporting to Head Office in UK.

2006-Now: PT. TUV NORD Indonesia as ISO 9001/RSPO/ISPO Lead Auditor. Branch Manager Surabaya Office. Responsibilities : Running daily operation in Branch Office, conduct audit and reporting.

Yes

RSPO Training

Certified RSPO Lead Auditor Training by ProForest-Wild Asia on July 7-11, 2008, Indonesia.

Yes

Other Training

- Internal Auditor Training of Environmental Management System (ISO 14001:1996) EARA - REDECON, 2000, Indonesia.

- Internal training SMK3, Indonesia.

- Workshop for Community-based Environmental Educators by the United Nations of

Yes


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Environmental Program, 2002, Thailand.

- Process based audit ISO 9001;2000 by PSB Certification, 2002, Indonesia.

- ISO 22000 by SAI Global, 2005, Indonesia.

- ISO 9001:2000 Advanced Lead Auditor Training Course, by IQCS International Certification Services, 2006, Indonesia.

- ISO 9001:2008 upgrading training, by TUV NORD Indonesia.

- ISPO training in 2011.

Experience related to RSPO

RSPO to date (Aug 2010 -May 2013)

- More than 25 x pre-assessments and main assessment of RSPO P&C in Indonesia, (RSPO P&C)

- 1 x NPP assessments in Indonesia

- 3 x RSPO SCC assessments in Indonesia

Yes

2.2.2. Assessment Team Members

RSPO REQUIREMENT ASSESSOR QUALIFICATIONS COMPLIAN

CE

Fluent in main local languages and English.

Anita Masduki (AM) Ujang Sehabuddin (US) Supijatno (SUP)

Indonesian citizen, fluent both in Bahasa and English Yes

Field working experience in the palm oil sector, or a demonstrable equivalent.

SUP

He holds a doctorate in Environmental and Natural Resources Management from Bogor Agricultural University (IPB), and has a strong background and experience in Agronomy aspects. He has been working in IPB since 1986 as a lecturer in Agronomy, including Palm Oil Plantation subject.

Yes

Good agricultural practices (GAP), integrated pest management (IPM), pesticide and fertilizer use.

SUP

He has extensive experiences in research, such as in plant water and nutrient requirements, irrigation and fertilizer application, seedling selection and Integrated Pest Management; Several research subjects that had been done, for example: Research of high grow fertilizer effect on growth and production of oil palm,

Yes

Health and Safety assessment on the farm and in processing facilities. (For example OHSAS 18001 or occupational. Health and safety assurance system).

AM She is a certified Lead Auditor of OHSAS and conduct OHSAS audits more than 5 years in plantations and mills.

Yes

Workers welfare issues and social assessment experience. (For example with SA8000 or related social or ethical accountability codes);

Economic issues

US

He has a magister degree in Agriculture Social Economy from Bogor Agricultural University (Institut Pertanian Bogor – IPB). Has been working as a lecturer in Agriculture Social Economy Department, Bogor Agricultural University. And involved in numerous researches for social economic projects, etc.

Yes

AM Social Accountability course, having experience in SA 8000 assessments for two companies in Indonesia Yes

Environmental and ecological assessmenting. (For example experience with organic agriculture, ISO 14001)

SUP

He qualifies in biodiversity assessment and biodiversity science. Underwent auditor training in oil palm estates and palm oil mill in EMS and RSPO P & C. Member of the team in RSPO assessment of PT. Perkebunan Nusantara IV, PT. Socfin Indonesia and many more.

Yes

AM

She is a certified Lead Auditor of ISO 14001 and conduct ISO 14001 audits more than 5 years in plantations and mills. More than 15 years preparing environmental impacts and ISO 14001.

Yes


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2.3. Certification Body

PT. TÜV NO.RD Indonesia is a subsidiary of the German TÜV NORD Group. Our company is a market

leader in Indonesia for inspection, testing and certification services. Through more than 800 clients, we

offer Not just a high added value service but also the trust and confidence embedded in our issued

certificates/reports. We satisfy not only our direct customers but also other stakeholders, like regulators

and interested society including NGOs, through our competent auditors, inspectors and analysts.

PT. TÜV NORD Indonesia, under its HQ in Germany, is a member of International Accreditation Forum

(IAF) and accredited by DAR–German and by the Indonesian Accreditation Committee (KAN). Services

provided by the Strategic Business Unit Systems Certifications are: Food Safety Management System ISO

22000, Information Security Management System ISO 27001, Social Accountability SA 8000, Food

Hygiene HACCP, Medical Device Directive MDD, ISO 13485, Occupational Health and Safety OHSAS

18001, Product Certification: GS-Mark, CE-Mark, SNI Mark, Inspection for ISPS Code, Clean Development

Mechanism (CDM) Validation & Verification, British Retail Consortium (BRC) and ISCC.

.

3. Assessment Findings

3.1. Summary of the Findings by Criteria

Objective evidences were obtained separately for each of the indicators for mill and estates in the annual

surveillance assessment. The results for each indicator from the different operational areas were

aggregated to assess the overall conformances of the company’s operations to each criterion. A statement

is made for each indicator on the finding. A summary of the Non-Conformities is given in Appendix 3.

During the annual surveillance assessment 1, 3 (three) major non-conformities and 4 (four) minor non-

conformities have been raised against RSPO Principals and criteria, whilst 1 (one) major non-conformities

have been raised against RSPO Supply Chain Standard –module E (mass balance).

ANJA and its supply bases have prepared a Corrective Action Plan which each date for implementation

has been accepted by PT. TÜV NORD Indonesia. Thus, ANJA Binanga and its supply bases are still

recommended to extend the certification of RSPO Principal and Criteria which valid until November

13, 2017.

The following is a summary of the findings for compliance with the RSPO Principles & Criteria for

Indonesian National International <INA-NI ver. May 2008 Standard). While a summary of the findings for

compliance with the RSPO Supply Chain Module E (Mass Balance) ver. November 2011 is attached in

Appendix 2. Summary of the findings for compliance with the RSPO Supply Chain Module E (Mass

Balance) ver. November 2011.

.


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Table 3-1 Summary of Findings by Criteria

FINDINGS/COMMENTS

Criterion 1.1 (C.1.1)

Provide adequate information to other stakeholders on environmental social and legal issues relevant with RSPO Criteria, in appropriate languages and forms to allow for effective participation in decision-making

PT ANJA Binanga still maintain the procedure to provide adequate information to other stakeholders on environmental, social and legal issues relevant to RSPO, through procedure Penanganan Komunikasi Stakeholder, Stakeholder Communication Procedure (PRS-SDV-006) rev.01, dated December 01 2009, and Prosedur Stakeholder Meeting, (PRS-SDV-007) held by Community Relation Officer . Auditor team assessed the implementation of this procedure and found that all information received from related parties and its responses was performed in Rekaman Penerimaan Informasi dan Tanggapan Stakeholder, Record of Information Request and Respond, (DOC-CRO-001), dan Rekaman Penanganan Informasi dan Tanggapan , Record of Handling of Information and Respond, (DOC-CRO-002);. The records contain information of date, name, organization, information requested, action taken to request , person in charge whom follow up or, and other references i.e. letter. The record was summarized and updated yearly and last resume was updated on August 2013. All records were maintained under procedure Prosedur Umum Penyimpanan Dokumen Perusahaan, General Procedure of Company’d Keeping Records, (PRS-SDV-002), and all records are maintained for at least five years.

Compliance Status : Full.


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

PT ANJA Binanga Management has a policy of no objection for documents to be made publicly available, such as legal, social and environmental documents. Only documents which contain confidential and sensitive information are not publicly available and this has been verified by the auditor team. Mechanism of handling public request for documents is also mentioned in the same procedure as above in Prosedur Penerimaan Tamu dalam Hal Pengajuan Permohonan Proposal dan Internal Memo Pencatatan Permintaan Informasi, Procedure of Receiving and Proposal of Application Submission and Internal Memo on Recording of Information Request, were recorded in the form 005/GM/YZ/Int/I-2012 Auditor team has verified that these documents were available for public viewing upon request, such as: • AMDAL, UKL-UPL, Social Impact Assessment (environmental and social impact assessment), ) • Laporan Pemantauan RKL/RPL (Environmental Management and Monitoring Reports). • Hak Guna Usaha/HGU (Land Use Title, Land titles/user rights (Site Permit Izin Lokasi) • Plantation Operation Permit (Izin Usaha Perkebunan). • Identifikasi HCV (HCV identification), • License to use water, (underground water use permit), • The Health and Safety Manual and Program. • Current and past FFB prices • Compensation claims mechanism Auditor team conclude in the survellance audit that all management documents on legal, environmental, health safety and social issues are publicly available upon request.



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

PT. ANJA Binanga still maintain the procedure on how to comply with all applicable laws and regulations through Prosedur Evaluasi Pemenuhan Peraturan, Procedure of Regulation Compliance Evaluation (PRS-CLS-001). Head of Legal Department has regularly monitored the regulation compliance in order to ensure that they can and will comply with applicable law and regulation. He also responsible to check whether the new or revised laws and regulations are followed and update the list of regulation compliance.

Implementation of this procedure was followed up by providing a Report on the Evaluation of Compliance with Laws and Regulations, FRM-SOP leg 01-02, last updated was on June 01, 2013.

This list of law and regulation including Land Titles, Environmental, Forestry, Water and Air Pollution prevention, Safety, Labour Wage, Waste Management, and relevant permits whichare applicable to mill and plantation operations. Auditor team has assessed that company has reveiwed to all applicable laws and regulations as well as operation licenses needed such as licences of hazardous transporter, boiler operation and found they meet all regulation.

Compliance Status : Full


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

Land titles for all sites of plantation, such as East, Central, and West Estate of Binanga were available and verified. List of land title was recorded in Tanda Daftar Perusahaan, Daftar Ijin Lokasi, Sertifikat HGU, Ijin Usaha Perkebunan, (Company Registration Location Permit, Certificate of HGU, and Plantation Permit ).


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The Company Registration No: 02.12.1.01.04115 dated January 28, 2008 and valid until February 3, 2013. The

Plantation Permit No. 525.26/9541/2007) dated, 2 Nov 2007. The Location Permit No: 460.1466/IL/X/1995, dated 9 Oct

1995. The Certificate of HGU No: 76/HGU/BPN / 2005, area 6,000 ha for West and Central Estate, and No.

67/HGU/BPN/2000, area 3,214.90 ha, No. 02-540.2-22-2009, area 197.05 ha for East Estate, so the total areas for

land status Hak Guna Usaha (HGU) owned by the company is 9,411.95 ha. Among the HGU areas, there are planted

areas around 9,290 ha (see the coloured green in figure 1.2) and the rest of HGU areas are for infrastructure and other

miscellaneous purposes.

There are Block 28 &29 of AFD IV of East Estate and Blocks 1-18 of AFD XIII of Central Estate, which is not HGU yet

for area of 522.82 ha. The Non-HGU area (522.82 Ha) is occupied by the Company based on Ijin Lokasi (Location

Permit) for expansion, No.591/160.B/K/2005, dated 16/06/2005. Such Ijin Lokasi is covering an area of 5000 ha,

located in Tobing Jae & Ramba Village, Huristak Subdistrict, Tapanuli Selatan District. In accordance to the

requirement of the Ijin Lokasi, the company started its process by purchasing land from people who claimed as the

owner of this block of land within the Ijin Lokasi based on their certificate of ownership (Sertifikat Hak Milik) issued by

National Land Agency (Badan Pertanahan Nasional/BPN). Considering the fact that the area has been planted and

compensated, the company decided to allocate this piece of land only for community partnership (kemitraan) and shall

be for the best interest of the farmers as well as part of the company’s CSR program. As a follow up action for the

partnership plan, the company is going to form a cooperative with local people in maintaining and managing the FFB’s

sales based on the financial & operation procedure in the estate. This cooperative will be formed with the condition,

among others:The member should be coming from the Villagers/farmers around the estate that eligible for plasma .

Each of the member of the cooperative will be given shares of the koperasi evenly; Since the area has been planted

and mature, the financing will be done in a form of re-financing by the bank. This Partnership scheme will involve local

people and the government as a facilitator.

ANJA Binanga has mechanism for the resolution of conflicts and disputes through Prosedur Tata Cara Penanganan Perbedaan Pendapat dengan Masyarakat, Procedure for Handling Dispute with Public (022/HR&GA/CP/Perbedaan Pendapat/06-09).

This procedure mentioned that if the problem cannot be resolved by negotioation, the compay will take legal action involving related institutions.

In the past, around 1991-1994 there were land disputes in East Estate as community in this area claimed the

ownership of the land, which was legally owned by PT ANJ. In fact, the company gave compensation to Mr. Baginda

Hasayangan Dalimunte at Simangambat Julu Village/ East Estate, for an area of 73 ha, to Mr. Pangihutan Hasibuan in

Huta Pasir Village/ Central Estate, for an area of 26 ha, and to Mr. Zulpan Hasibuan at Ramba Village/ Estate Barat, for

an area of 150 ha.

Scattered boundary stones were encountered along the legal boundaries of all the estates. Auditor team inspected at

several places during the surveillance assessment., and it was found that :

The last monitoring of BPN boundaries pegs was conducted in July 2013, but no record of BPN boundary peg

number XLIV HGU 1 which is supposed to be located in Division X West Estate.

During site visit the field staff could not find and show the location of BPN boundary peg number XLIII in Division

X West Estate.

A major nonconformity was raised (See NCR-ANJ-01). Both correction and corrective action have been submitted,

being reviewed and accepted. by auditor.

Compliance Status : Close, after correction and corrective action.


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

It was confirmed during surveillance assessment as well as during interview with stakeholders that there were no

findings which indicated the existence of customary rights in West and Central Estates. However, this was present in

East estate, at Desa Ramba Subdistrict Barumun Tengah, land acquisition of customary land within HGU area was

well executed, through Keputusan No. 592.2/01/1993 with total area of 152 Ha in 1993. This issue was discussed

during stakeholder meetings and it was confirmed that there are no outstanding customary rights or issues.



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


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PT. ANJA Binanga has long term projection (2011 – 2016) for its crop, including key performance data for its mill and

estates as part of its long term economic planning, including mill allocation, production of FFB (tonnage); FFB/ ha

(yield); production CPO and PK; OER, by predicting inflation rate; exchange rate; interest rate; portion cash; dividend;

non deductible expensive; working hours; turnover; % allowance for doubtful accounts, age of asset; price of FFB as

stated in “Financial Projection PT. ANJA “ as summarized below:

Indicator 2011 2012 2013 2014 2015 2016

Mature plantation (Ha) 9,813 9,813 9,813 9,813 9,813 9,599

FFB production (ton) 184,894 270,159 260,000 230,918 221,132 210,409

FFB purchase (ton) 62,272 44,053 60,000 60,000 60.000 60,000

Total CPO production (own estates + purchase) (ton)

55,282 68,805 72,800 65,966 63,966 61,146

Total PK production (ton) 12,614 16,590 15,700 14,246 13,757 13,220

PT. ANJA Binanga also provide replanting program for its supplybbases. During annual surveillance assessment

auditor verify the replanting program, however, it was found that :

There is no review on change of replanting program as stated in the last RSPO certfication audit report. The planting

year1988 will be replanted in 2013, but it will be started in 2016 without any written explanation or evaluation for the

change.

A minor nonconformity was raised (See NCR-ANJ-02). Both correction and corrective action have been submitted,


Compliance Status : Close, after corrective and corrective action.


Operating Procedures are appropriately documented and consistently implemented and monitored

PT. ANJA BInanga has Standard Operating Procedures with the best practices for its mill and estates operations.

Most of the Standard Operation Procedures are incorporated in the SM-K3 management. The following procedures

applicable and implemented within sustainable palm oil,

a. SOP for Oil Palm (containing aspects from nursery, land preparation, planting, upkeep, harvesting, waste

management, HCV, emergency preparedness and response, and environmental monitoring).

b. SOP for Palm Oil Mill (containing stages of process, boiler, power generation, water treatment, land application,

electrical system, quality (inc monitoring of CPO parameters), dispatch and laboratory).

c. Manual and SOPs for Health & Safety and environmental (containing application of pesticides, use of PPE ,

emergency preparadness) .

Operating procedures are documented in the SOP (Standard Operating Procedure) for Plantations (MSL-OPR-001)

and Mill (MSL-Mill-001). All activities regarding the estate operation and mill was recorded in the Estate and Mill

Monthly Report (DOC-ANJA-001) respectively. The implementation and operations are monitored through Internal

Audit Operations, Engineering and Agronomy Visit, and and Internal RSPO Audit.

Monitoring of estate operations recorded in Internal Audit File includes house keeping, warehouse, field maintenance

and harvesting. Internal audit is done twice a year and external financial audit once a year

Monthly Management Report of estates contain detailed FFB production and expenses, fertilizer, pesticide and

herbicide applications, pruning, harvesting, hand picking, stock balances of warehouses, operational expenses,

visitors, management structure, clinic report, labour and employees, rainfall, workshop, inventories of company

properties.

However, not all the procedures established are adequate or properly implemented. During surveillance audit it was

found that :

Analytic scale and oven in the laboratory have never been calibrated yet.

A Minor non-compliance was issued. (See NCR-ANJ-03). Both correction and corrective action have been submitted,


Compliance Status :Open, will be verified in next survveillance audit..

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

ANJA Binanga has developed SOP to maintain soil fertility and water quality as stated in SOP-OPR- 005, Konservasi Tanah dan Air dated on 1 May 2005. Regular soil analysis is done every 7 year by BLRS, the last report was in 2007. Leaf sampling on block basis is carried out by Asian Agri Laboratory Services every year to analyze for leaf N, P, K, Mg, Ca and B status.


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The fertililizer recommendation was established by Head of Agronomy. General fertilizer used is NPK, if N is inadequate or deficient, higher rates of urea will be recommended, if K is low or deficient, more MOP will be recommended for application as stated in SOP –OPR-31.

To maintain soil fertility the company used palm by-products such as POME and EFB. These nutrient- containing mill wastes are applied in the fields to improve the soil organic matter content and to substitute or supplement inorganic fertilizer inputs. Fronds are systematically stacked in the palm inter-rows to prevent soil erosion following pruning and after harvesting of FFB.

EFB is applied as fertilizer for beneficial plant and also as mulching. According to Internal Memorandum from General Manager dated February 18, 2011 regarding the usage of EFB, the EFB dosage was 40 ton/ha or equivalent with 307 kg/plant. The priority of application was focused in West Estate since it has lower yield than East and Central Estates. There is working instruction for EFB application.

Land Application permit for POME has been issued by decree of Bupati Tapanuli Selatan No.600.31/1007/K/2002, and the permitted BOD level is 3,000 ppm.


Criterion 4.3 (C.4.3) Practices to minimize and control erosion and degradation of soils

Although at ANJA Binanga estates there is no fragile soil found, but as a member of ANJA group, ANJA Binanga has

SOP Pengelolaan Tanah Marginal, Marginal Soil Maintainance (SOP-OPR-029) dated on 1 June 2009 for managing

fragile soils. This SOP shows that the management of ANJA group is care about the practices to minimize and control

erosion and degradation of soils and applicable for all companies within the group.

The topography of land in general was flat. Only a small area has 15-25% slope and to prevent this area from erosion,

the company has developed land and water conservation program. The program includes terracing and planting

Mucuna bracteata leguminous covers. Maps of topography and photographs for both terracing and LCC planting were

available.

Roads were very well maintained, ANJA has established SOP to maintain road as stated in Prosedur Perawatan Jalan

(PJ-CWT-002), record of road maintenance was kept in Program Pemeliharaan Jalan, Road Maintenance Program.

ANJA also has vetiver grass planting program on sloped land to minimise soil erosion.


Criterion 4.4 (C.4.4) Practices to maintain the quality and availability of surface and ground water

ANJA Binanga has developed SOP to maintain soil fertility and water quality as stated in SOP-OPR- 005, Konservasi

Tanah dan Air dated 1 May 2005. Prosedur Pengelolaan Sempadan Sungai, Riparian Management (PRS-SDV-004)

Water management included monitoring of rainfall and all water usage and discharge (water as they enter and leave

mills and plantations).Company provided the water balance, including monitoring of daily water consumption entering

mills and plantation. Outgoing waste water into main natural waterways, such as drains, waste water runway, and

POME for land application were monitored monthly.

Biological Oxygen Demand (BOD) from waste water treatment plant and pounded for land application was measured

by external laboratory monthly. Result of measurement was monitored and recorded into documents of RKL/RPL

(Environment Management Plan – Environmental Monitoring Plan), both for plantations and mill and sent to local

environmental agency every 6 (six) months. Result of BOD measurement still below the permitted BOD level, 3,000

ppm. See section 5.6.

Water usage for mill operations was available and recorded as Program Pengelolaan Air di Pabrik (Water Management

for Mill). The range of water consumption in 2013 for mill between 0.92 - 2.41 m3/ton FFB processed, the average of

water consumption was 0.79 m3/ton FFB processed.


Criterion 4.5 (C.4.5) Pests, diseases, weeds and invasively-introduced species are effectively managed using appropriate Integrated Pest Management (IPM) Techniques

ANJA Binanga has provided procedure for Integrated Pest Management (IPM) plan outlined in SOP Agronomi

(Pengendalian Hama Terpadu SOP-OPR-026). The procedure aims for controlling pests, diseases and weeds.

Implementation of the IPM program recorded in Management Plan and Pesticide Use Reports

IPM comprises both chemical and biological control. Biological control for caterpillar i.e by planting of beneficial plants

such as Antigonon leptosus (air mata pengantin),Turnera subulata (bunga pukul delapan) Euphorbia heterophylla

(patik emas),Casia cobanensis, The plants are hosts for Cikanus sp(caterpillar predator).

Report of IPM Program was recorded as Report of Pest and Disease. Rat control was conducted through rat census

and barn owl (Tyto alba) monitoring, for example : in West Estate per August 2013 there were 102 nest boxes that

occupied by 71 mature birds.


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Monitoring of pesticide toxicity units records was available per estate’s division, were calculated based on the total

usage of the pesticide per hectare, multiply by LD 50 for oral and dermal stated by the manufacture, and multiply by

the active matter.


Criterion 4.6 (C.4.6) Agrochemicals are used in a way that does No.t 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.

There is a List of pesticides used and pesticides stocks, refer to World Health Organisation Type 1A or 1B and

recorded as Buku Klasifikasi Pestisida menurut WHO (Pesticide Books according to WHOis those can be bought for

application are in accordance with the Permentan No 1/2001, WHO and Rotterdam convention, are issued and

distributed to Procurement division. Only procurement division can buy and supply the matter. PT. ANJA Binanga has

a procedure on how to apply agrochemicals, refers to Peraturan Menteri Pertanian No. 07/Permentan /SR.140/ /2007,

or Regulation No. 07/ Permentan /SR.140/ 2/2007 Ministry of Agriculture Republic of Indonesia.. All the agrochemicals

used are registered and approved by Pusat Perizinan dan Investasi Sekertariat Jenderal Departemen Pertanian 2008,

or Invesation and Permit Center, Agriculture Department, Republic of Indonesia. During 2012 - 2013, the pesticides

used in PT. ANJA Binanga are consits of :

Herbicides : Ally 20 WG ( Methyl metsulfron ); Basta 150 SL ( Ammonium glufosinat); Garlon 480 (Triclofir);

Lindomin 865 SL (2,4 D Dimetil amina); Round Up 486 (Isopropil amina glyphosat);

Insecticides : Fenval 200 EC (fenvalerat);

PT.ANJA Binanga has established procedure to handling hazardous agrochemicals, provide MSDS, emegecy facilities

such as shower water and soap available if emergency situation happened. provide bin for hazardous wastes, sand,

and fabric cotton waste as required by SOP-EHS-011 Prosedure Pengelolaan Limbah Agro Kimia dan Kemasan

Pestisida, Agrochemical Waste Management Procedure. Usage of agrochemicals was recorded in Data Penggunaan

Bahan Kimia Beserta Dosis Pemakaian per Ha per ton TBS.

Refer to Agriculture Ministry, through its decree No. 1/2007 regarding Bahan Aktif Pestisida Yang Dilarang Dan

Pestisida Terbatas (Prohibited active ingredients in pesticides and Restricted Pestcides), Head of Sustainable

Department has issued memorandum No.: 053/GM/YZ/Int/V-2011 dated on May 14, 2011 regarding Penggunaan

Pestisida Berbahan Aktif yang di Larang (Usage of Pesticides with Prohibited Active Ingredient). In this regulation,

paraquat was prohibited in all Binanga Estates. Checks on the records of agrochemicals used found that they complied

with the regulation. There was no usage of paraquat in all Binanga Estates, since 2010. Regular training/ socialization

for chemical sprayers was conducted.

There was evidence of regular medical check-ups for workers involved in handling hazardous chemicals. ANJA has

policy that pregnant and breast-feeding women are prohibited from working with pesticides as stated in Internal Memo

GM No: 097/GM/HP/Int/VI-2009 Regarding the health of woman who work with agrochemicals, Perlindungan terhadap

Hak Reproduksi Karyawan Perempuan (Reproductive Right for Women Employee )and there are records of

socialization of the policy to the female workers. The implementation of this memo was recorded as Pemeriksaan dan

Pemantauan Wanita Hamil Dan Menyusui Bagi Karyawan Spraying (Measurement and Monitoring for Pregnant and

breast feeding women). The auditors interview the agrochemical sprayers to find out whether they have any skin

related disorders or rashes, breathing difficulties or nail abnormality which are classical symptoms of toxic reactions,

and found there was no abnormal situation on this.


Criterion 4.7 (C.4.7) An occupational health and safety plan is documented, effectively communicated and implemented.

Top management of ANJA Binanga has established enviromental, health and safety policy as stated in “Kebijakan

Lingkungan, Keselamatan dan Kesehatan Kerja” dated 1 March 2011. PT. ANJA Binanga has implemented health

and safety management system as required by Indonesian Government and obtain SMK3 certification. Organisation

Structure of OHS (Tim Panitia Pembina Keselamatan dan Kesehatan Kerja / P2K3) has been established and updated

regularly, last updated on March 25, 2013. The report of P2K3 was submitted to Manpower Department in Padang

Lawas Regency Dinas Tenaga Kerja every 3 months. Last report for April-June 2013 period was submitted on July 17,

2013. Organizational structure of Health Committee was available and chaired by Mr Subhi whose held the Sertifikat

Ahli K3 Umum (Certificate for General OHS Expert). There was regular OHS Committee meetings conducted at

monthly interval to give relevant explanations to all mill and plantation supervisors. Last meeting was held on June

17,2013. The agenda about the safety issues. Emergency Team was available and developed on 01.03.2011. All

Emergency Team has been properly trained. Team P3K has been trained on 26.09.2012.

Daily and before work commences, supervisors of mill and plantations will conduct morning briefing to all workers regarding their jobs for the day including briefing on safety aspects. Record of training, socialization of OHS, morning meeting, certificate of training, use of safety equipment such as fire extinguisher were available. There were several OHS trainings such as training on OHS and RSPO, First aid, HIRAC and OHS program. There are regular meetings between management and workers on health and safety issue. All the operations have been risk assessed for


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obtaining SMK3 certification. With the assessment results, procedures for accidents and emergencies were developed. All the workers are assumed to have a work permit issued by Ahli K3 (Safety Officer) since the auditee has already implemented SMK3. There is a SOP for safekeeping of toxic chemicals and also for keeping records on their use. An area sprayed with a toxic chemical would have a signboard posted warning people of the danger and telling them to keep away.

All workers are insured by PT. Jaminan Sosial Tenaga Kerja (Jamsostek), the national insurance body; records of

member list and payment were available. PT. ANJA Binanga provides health care facilities for spraying operators,

workers, and staff as well as people living around the employee’s housing complex. The patient data were registered in

their medical record. Each plantation has a health care facility and is visited by a doctor every week.

PT. ANJA Binanga has identified, controlled, and monitored the occupational hazard and risk and recorded in form

DID_K4.7_EHS_12, Hazard Identification and Risk Assessment Control (HIRAC). This asessment was understood and

implemented properly by employees in general, and recorded properly. PT. ANJA Binanga conduct regular

measurement regarding safety working environment in mill and estates such as noise level. Workers who are

exposed to high risk were identified and regular health examination was conducted as stated in SOP Prosedur

Pemeriksaan Kesehatan (SOP-EHS-024). Personnel protection equipment was given to all high risk employees.

Proposed to check the MCU for all workers of estates and mill as per email from EHS division to the medical institution

dated June 18, 2013. The general MCU was held on 25-27 June 2013. Noise in power house, kernel, press, sterilizer,

boiler: 96.9; 95.3; 89.5; 87.8 over that limit based on Permenakertrans NO. PER/13/MEN/X/2011. Based on HIRAC

and result of measurement of safety working environment for noise level, the workers who are working in high noise

level area have to be checked audiometric and equipped with proper PPE such as ear muffs/ ear plugs.

However, it was found that :

There is no appropriate evidence of Medical record of audio function for workers in boiler, power house, and kernel

station and thorax (x-ray) forworker at laboratory and chemical spraying. For example the worker at power house has

been worked in this station for eight to nine years and never been checked for audiometric as well as the worker at

kernel station who has been worked for four years.

During site visit some of workers at kernel station didn’t wear ear plugs while working in high noise level area.




Criterion 4.8 (C.4.8) All staff, workers, smallholders and contractors are appropriately trained.

Management of PT ANJA BINANGA provides procedure to improve the competency of its worker through procedure

014/HR&GA/CP/Training/ 07-2007, as well as for its subcontractor in procedure Pelatihan Bagi Karyawan Kontraktor

di dalam Pabrik, SOP-SAF-008. Both of the procedures mentioned the training mechanism for its staff, worker,

subscontractor, and outgrower farmer in accordance with workers’ positions and competenciesthrough procedure

014/HR&GA/CP/Training/ 07-2007,as well as for its subcontractor in procedure Pelatihan Bagi Karyawan Kontraktor di

dalam Pabrik, SOP-SAF-008. Both of the procedures mentioned the training mechanism for its staff, worker,

subscontractor, and outgrower farmer in accordance with workers’ positions and competencies.

Training programmes for 2013 was available. There are several training programmes for workers, i.e Occupational

Health and Safety, High Conservation, spraying practices, Integrated Pest Management, , toxic and hazardous

substances, toxic and hazardous waste management, and fire prevention and control. Training of RSPO and OSH was

given by the sustainability department, training or agronomy (includes spraying). by the estate manager. and simulation

of fire drill was held on February 20, 2013.

Training for smallholders include use of PPE and last information about FFB price. Training for subscontractors was

held on Sept 02,2013 to boiler’s maintenance contractor, on May 02 2013 to hosue building contractor, to PT ABA of

general contractors. Training for FFB suppliers was also available. All training records during 2012 and 2013, including

attendance lists, photographs, and training material were available and maintained properly. There was evaluation of

the effectiveness of the training for all those trained participants. The mill and estates have the individual training

record files for all their employees.


Criterion 5.1 (C.5.1) Environment aspects of plantation and mill management, including replanting, that have environmental

impacts are identified, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continuous improvement.

PT ANJA BINANGA has performed first Environmental Impact Assessment (AMDAL/RKL-RPL) based on Deree of

Agricultural Ministry No.SK/Mentan. 014/ ANDAL/RKL-RPL/BA/V/95 dated 3 Mei 1995. The first issue of document was

approved in 1998, and it was updated quarterly as Laporan Monitoring Rencana Kelola dan Pemantaun Lingkungan /

RKL-RPL (Monitoring Report of Environmental Management and Monitoring Program).

The AMDAL information classified the activities into negative and positive impact. The listed negative impacts

consisted of : 1) provision of non forest areas, 2) land clearing, and 3) procurement of infrastructure; while the positive

impacts include: 1) Procurement of infrastructure, 2) Cover crop planting, 3) Planting of main crops, 4) maintenance of


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Immature and Mature crops, 5) Labour vacancy and 6) Increased of community wages .

Auditor team reviewed the last RKL/RPL updated on Quarter 1 and 2, of 2013. The assessment covered both the mill

and estates of ANJA Binanga in three estates, East, Central, and West Estates. The document was regularly

submitted to Badan Pengendali Dampak Lingkungan Daerah/BAPEDALDA or Local Environmental Impact Assessment

Agency every semester (6 months).


Criterion 5.2 (C.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.

HCV assessment was conducted on site during 31 May - 4 June 2011. ANJA Binanga held public consultation on

September 22, 2011 by FOCUS CONSULTING GROUP [email protected] ; www.fcg.co.id; led by approved

HCV assessor Ir. Siswoyo, Msi. Total identified HCV area = 324.58 Ha or 3.27% of total ANJA Binanga area.

East Estate was found to have HCVs 1.3; 4.1; 6, totalling 118.78 Ha. There was no protected flora. HCVs 1.3; 4.1

were found in Central Estate covering an area of 153.10 Ha.

ANJA Binanga has established SOP to manage and monitor HCV as stated in Prosedur Pengelolaan dan

Pemantauan NKT (PRS-SDV-003) and the organization of this was performed in Struktur Organisasi Pengelolaan HCV

Dan Job Description

Conservation management plan was available on site, monitoring of biodiversity every 6 month by Conservation &

HCV staff. The management of HCV including the distribution of posters or erection of signage boards to inform or

warn people not to hunt or kill the protected species, and monitoring the existances of each HCV.which has been

identified. However, during surveillance assessment it was found that :

Not all of protected and endangered species equipped with proper photographs/ pictures as in HCV assessment

report.

HCV daily patrol reports made by patrol officers in July –August 2013 in West Estate almost everyday found the

protected animals such as wildcat, but HCV monthly reports made by Field Assistant there was no remarks

regarding the presence of protected animals.




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

All waste streams have been identified in the waste management plan and handled appropriately. Office waste and

household waste were segregated, recycled where possible with rest to the landfill. Human waste was discharged into

septic tank. Fibre was used as fuel for furnace. EFB for fertilizer as mentioned in Section 4.2

Palm oil mill effluent (POME) was used for land application as fertilizer supplement. POME from mill was pounded and

an-aerobically digested in 8 ponds. The treated effluent with reduced BOD was then applied to the land in flat beds.

The BOD level from ponds were monitored monthly and reported in the form Monitoring Analisis Limbah B3 &

Monitoring Limbah Cair Pabrik. To avoid spillage on the soil, there was secondary containment and oil traps in fuel/oil

storage.

Air pollution (from the boiler/generator) was controlled by routine maintenance, and the air quality from the emission

stack was monitored every six month.

Hazardous wastes in the estates and mill are recorded and kept in a store room, with signs warning of the potential

danger. The wastes include pesticide containers, batteries, and waste oil and used oil filters. TMP has not yet

disposed of any waste container because it has not yet obtained a licence for dealing with the wastes. However, some

waste oil is used as lubricant for engines in the mill. Washings from knapsack sprayers are poured into a tank and then

used to spray weeds.

There was procedure to manage waste, Prosedur Pengelolaan Limbah B3, SOP-EHS-012 (Hazardous Waste

Management ). This procedure was available and cmmmunicated to waste officer at all sites of ANJA Binanga estates

and miil. Wastes were identified in format Waste Identification Risk Assesment, which identify all types of wastes, the

pollution sources, amount, where to be disposed,name of waste collector and its truck identication. Copy of

permit/licence of waste collector were available both at ANJA Binanga mill and plantations.

Toxic and hazardous waste was collected at centralised hazardous warehouse and PT CV Amindi Barokah collected

the wastes regularly. CV Amindi Barokah has a licensed as collector for toxic and hazardous waste based on Decree

Letter No B.9455 FDA, from Ministry of Environment (MoE), valid until May 2012. There was hazardous transporter

licence from Transportation Department valid from 22.10.2009 until 22.10.2014 and hazardous central warehouse has

also licence from MoE No. 377A/2009 valid from 9.7.2009 until 2014, Waste which collected on June 27, 2013 were

used oil, used battery, used filter, used lamp, used container. All waste water, hazardous waste, and emissions

complied to applicable regulation and reported in RKL-RPL report every six month and submitted to the Environmental


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Agency of Padang Lawas (PALAS) District, North Sumatera Province.



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

ANJA use fibre and shells used as energy source in the mill. Records of fibre and shells used as renewable energy used were recorded as “Pemakaian Total Energy” and monitored in the manager’s Monthly Report on the mill. Records of fibre and shells used as renewable energy were recorded as “Laporan operasional Turbin , laporan Penggunaan Cangkang” and “Laporan penggunaan BBM Solar dan Vehicle ANJ Agri” and monitored in the manager’s Monthly Report on the mill. Efficiency analysis was available and records on energy used was maintained properly


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

The use of fire with any reason is strictly prohibited, such as activities in land preparation of new developments and replanting. under RSPO policy and procedure according to the policy was SOP Agronomi SOP-OPR-003 SOP Land Clearing with Zero Burning Technique. Zero burning policy is also stated in contractor’sagreement, SOP-EHS-006 of Fire Handling , and SOP-SAF-006 SOP of Emergency Action Plan and were well implemented. The wastes that are generated by mill and plantations activities are treated properly. A notable achievement has been made for the elimination of fire for disposal of garden waste and packaging materials at housing. The company has installed fire protection systems and training for preparedness in fighting fire at all estates and other infrastructure. The analysis and maps of critical land was recorded as report, namely “Analisis Tingkat Kerawanan Kebakaran Lahan”, “Peta Tingkat Kerawanan Kebakaran Lahan”,and “Daftar Sarana dan Prasarana Penanggulangan Kebakaran Lahan” which available at all plantations. Siren or emergency alarm for getting attention and help during emergency was available and checked regularly and simulation of fire drill was held on February 20, 2013.


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

PT. ANJA has identified pollution and emission sources, which comes mainly from boilers, generator sets and motor vehicles . Air pollution measurement was conducted every six months by Balai K3 Medan, North Sumatera province and recorded as “Laporan Hasil uji emisi sumber tidak bergerak, kualitas udara lingkungan kerja & emisi sumber bergerak” (Air Emission Monitoring Report ). ANJA has a pollution and emission reduction program in which is prohibited the burning of EFB and domestic wastes in the mill, estates and housing complex .

Since the palm oil mill is not one of the industries mentioned in Environmental Ministry Decree (KepmenLH) No. 13/1995 section 2 article 1, thus it is not an obligatory to install smoke density monitoring and recorder control equipment. But the mill is obliged to monitor the emission parameters in accordance with the regulations twice a year as per Environmental Ministry Regulation (PermenLH) No. 7/2007 section 6b.

The parameters tested for boiler are SO2, NO.2, H2S, particulate, etc. as per the Ministry of Environment Indonesia regulation “Peraturan Menteri Lingkungan Hidup No. 07/2007”. The average of 2 (two) times measurements in 2012 and period I 2013 showed that all parameters were under controlled.

For Genset emission was tested against KepmenLH No. Kep-13/MENLH/3/1995, where the average result in 2012 was comply with the standards

Ambience air quality monitoring result showed no parameters above standard as per Government Regulation (Peraturan Pemerintah RI/PP RI) No. 41/1999..

A procedure to treat POME has been established and the records of monitoring POME are kept properly and were sighted.. POME are processed through 8 series of settling ponds where anaerobic bacteria was used to digest wastes and reduce BOD. The treated effluent was applied to the field in flat beds and ready to use as land application. Usage of POME for land applicatiion was aimed at reducing the use of inorganic fertilizers.

Auditor checked and verified that all waste water, hazardous waste, and emissions complied to applicable regulation and reported in RKL-RPL report every six month and submitted to the Environmental Agency of Padang Lawas (PALAS) District, North Sumatera Province.


Criterion 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 continuous improvement.

The Social Impact Assesment has been integrated in the Environmental Impact Assessment (AMDAL/RKL-RPL)

No.SK/Mentan. 014/ ANDAL/RKL-RPL/BA/V/95 dated 3 Mei 1995, conducted by local consultant from Sumatera Utara

University. There was not many information about social impact assessment for estates and mill in this assessment.

The social impact assessment noted the positive impacts on activities related to labour vacancy and increase in

community wages. The data on social and economic analysis and impacts were collected through questionnaire

surveys.

There were records of Corporate Social Responsibility (CSR) activities for year 2012 and 2013. The program covered

such as training on best practices for palm oil to farmer and smallholder, contribution given to community, such as road


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repair, school contribution. Social impact of company was discussed during stakeholder meeting


Criterion 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

ANJA has an effective communication and consultation procedure with smallholders and its local communities.

through procedure Penanganan Komunikasi Stakeholder, Stakeholder Communication Procedure (PRS-SDV-006)

rev.01, 01.12.09, and Prosedur Stakeholder Meeting, (PRS-SDV-007) held by Community Relation Officer.

Consultation with stakeholders is done at least yearly . PT ANJA BINANGA has prepared a system on how to provide

adequate information to other stakeholders on environmental, social and legal issues relevant to RSPO,. Record of

stakeholder list and minutes of stakeholder meeting was available.

Auditor team assessed the implementation of this procedure and found that all information received from related

parties and its responses was performed in Rekaman Penerimaan Informasi dan Tanggapan Stakeholder, Record of

Information Request and Respond, (DOC-CRO-001), dan Rekaman Penanganan Informasi dan Tanggapan , Record

of Handling of Information and Respond, (DOC-CRO-002);. The records contain information of date, name,

organization, information requested, action taken to request , person in charge whom follow up or, and other

references i.e. letter. A list of ANJA stakeholders includes the local communities, NGOs, labour union, contractors and

local government.


Criterion 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 ANJA BINANGA has procedure and mechanism on how to handle disputes, noted in memorandum No.

022/HR&GA/CP/Perbedaan Pendapat/06-09. This policy has mechanism for difficult-to- resolve conflicts whereby such

cases would be brought to courts for legal judgements. The policy has been socialized to internal and external

stakeholders.

All information received from related parties and its responses was performed in Rekaman Penerimaan Informasi dan

Tanggapan Stakeholder, Record of Information Request and Respond, (DOC-CRO-001), dan Rekaman Penanganan

Informasi dan Tanggapan , Record of Handling of Information and Respond, (DOC-CRO-002). These records were

maintained for at least five years.


Criterion 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 stake-holders to express their views through their own representative institutions.

PT ANJA BINANGA has a policy on compensation for loss of legal or customary rights, noted in memorandum No.

021/HR&GA/CP/PembebasanLahan/06-09 and procedure of Pembebasan Lahan Dan Tanam Tumbuh. This policy

mentioned how to handle land conflict if it cannot be resolved by negotiation. This policy has been communicated to

stakeholders during stakeholder meeting and public consultation conducted on June and September 2011.

When public consultation held on March 7, 2012, auditor found that the stakeholders were aware and understood the

content of the procedure. There was conflict between ANJA Binanga and local community since 2011 regarding land

dispute in Ramba Village which still continuing until now.

Eventhough it had been brought into court and based on Supreme Court decree that ANJA won that legal case, some

of local communities still cannot accept this situation. ANJA is still working on the negotiation process with local

communities and other stakeholders such as police, regent and council member of Padang Lawas regency to solve the

problem. All records are kept properly, and audit team checked on Surat Ganti Rugi Tanah, Surat Perjanjian Ganti Rugi

Tanah, Bukti Pembayaran Ganti Rugi.


Criterion 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.

PT ANJA BINANGA has a policy on social responsibility as shown in memorandum No. 025/ HR&GA /CP/ Tanggung

Jawab Sosial Perusahaan/06-09. The company set the salary based on Governor of North Sumatera 2013 and

Workers Union Agreement of Plantation and Mill (Badan Kerja Sama Perkebunan dan Pabrik Sawit/ BKS-PPS.

According to this agreement, PT PT ANJA BINANGA in 2013 set the minimum salary of Rp. 1,375.000 , which consists

of basic salary and allowance.

Pay rates including working time, overtime pay terms are included in work contract(Perjanjian Kerja Bersama - PKB).

Pay rates are based on Undang-Undang No.32 Year 2004 Workers Union Agreement and as per the employment

agreement. Pay rate includes basic wages and allowances, audit team checked on List of Worker’s Salary in 2013,

Worker’s Contract Agreement, and payment of worker insurance.


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Payment records showed that the workers are receiving more than the minimum wage Payment records are signed by

the workers to acknowledge receiving the payment in full and understand the calculation. Interview with workers

confirmed that they understand the pay rate and the payment was on time and never delay.

Company provides housing for each family, clean water (water tested by the health authorities to confirm whether it is

fit and safe for human consumption), electricity, medical facility, bus stop, school buses,church, mosque, kindergarten,

sports activities,domestic waste collection, and other general social faclilities.


Criterion 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.

ANJA has an agreement with the workers and management staff to allow them to establish a labour union in

accordance with national legislation UU No. 13/ 2003. However, only non-staff employees can be Union officers to

obviate any conflict of interest. The Union and management of ANJA negotiate the Perjanjian Kerja Bersama, or

Mutual Working Agreement regularly. Union Worker also provided with the facility of room/ building and furniture..

There was also memorandum of Bipartite Agreement between company and employee’s representative No.

560/393/2011, dated June 27, 2011 regarding Bipartite Establisment Period 2011- 2014, and record on this was

available. The minutes of some meetings were checked.


Criterion 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 programs. Children are not exposed to hazardous working conditions.

ANJA has a policy on recruitment for mill and each estate. Kebijakan Perusahaan tentang Pedoman Penerimaan /

Pengangkatan/ Mutasi/ Promosi/ Demosi Karyawan “ Rev 0/Mei 2009, batas penerimaan usia 18 – 50 tahun

This policy includes the statement that no worker under 18 years of age will be accepted as employee of the company.

There was memorandum from Head of HRD No. 21/HRD/INT/VII/2009 “Larangan Mempekerjakan Pekerja di Bawah

Umur”.Records of personal data of employees - age, marital status, position and rank, location of work, date of

commencing employment - are kept. Checking the records of the last recruitment and interviews with employees

confirmed that no one under 18 years old has been employed - in compliance with Indonesian national legislation UU

RI No. 13 Tahun 2003, article 68 .


Criterion 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.

PT ANJA BINANGA has a policy based on Undang-Undang no. 13 tahun 2003 tentang Tenaga Kerja (Act no 13/2003 about Labour) about equal opportunities for each mill and plantation.

ANJA Binanga has established a policy regarding equal right and opportunity of employee as stated in Kebijakan Perusahaan Tentang Pedoman Penerimaan/ Pengangkatan & Mutasi/ Promosi/Demosi Karyawan and in Kebijakan Tentang kesempatan kerja yang sama bagi semua orang. ANJA Binanga also established a policy on commitment not to employ child labour. The policy indicated that workers have same opportunities for promotions regardless of race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliations or age.

It was noted that company accepted new employee based on their capabilities and qualifications. In procedure SOP AA-HR-305.2-R0 “Rekrutmen dan Seleksi Karyawan” (Reqruitment and Selection of Employee) and through interview with workers in mill and plantations, it was confirmed that there was no discrimination on working opportunities, all workers were treated equally.

.ANJA Binanga has established policy regarding equal right and opportunity of employee as stated in Kebijakan perusahaan tentang pedoman penerimaan/pengangkatan & mutasi/promosi/demosi karyawan and in Kebijakan Tentang kesempatan kerja yang sama bagi semua orang. Records of employee’s reqruitment and its contract

agreement was available


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

There is Internal Memo GM No: 097/GM/HP/Int/VI-2009 Perlindungan terhadap Hak Reproduksi Karyawan Perempuan or Protection of reproductive right for female workers and No. 038/GM/YZ/04/2011 Penyelesaian Kasus Pelecehan Seksual dan Struktur Organisasi Komite Penanggulangan Masalah Pelecehan Seksual.


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The company held the sozialisation of the policy regarding sexual harassment and related procedure on 23 May 2011. Organisation structure of gender committee and specific grievance mechanism has been established


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

PT ANJA BINANGA has developed a Working Agreement between company and its suppliers under Surat Perjanjian Pembelian TBS Kelapa Sawit Milik Perkebunan No. 002/ ANJ-Agri/SP/TBS/I/2011 and SOP Pembelian TBS Luar No.ANJA-F&A-SOP 07. The FFB prices are based on current prices agreed by both parties and updated monthly. Records of payment from company to suppliers were available and checked during assessment, include its deductions if any. Interviews with FFB suppliers confirmed that payment was transparent and understood.

The aspect of health and safety that must be complied by supplier and contractor also stated in the agreement. The suppliers and contractors shall equip their activities with personnel protection equipment (PPE) properly.

ANJA Binanga gives opportunity to local community to sell FFB with decent price, or to be transporter of FFB as long as they pass the tender process and qualification.

However, there was inconsistency regarding FFB grading from outgrowers as follow:

FFB purchased from outgrowers were classsified as small bunch, medium bunch and big bunch, but no written information of pricing mechanism for small bunch and medium bunch

A Major non conformity was raised. (See NCR-ANJ-06). Both corrective and corrective action has been submitted,

being reviewed and accepted by auditor.

Status : Comply after correction and corrective action.

Criterion 6.11 Grower and mills contribute to local sustainable development wherever appropriate.

ANJA has establish a policy regarding CSR as stated in Kebijakan Perusahaan tentang Tanggung Jawab Sosial Perusahaan No.022/HR &GA/CP/Tanggung jawab Sosial Perusahaan/06-09/Rev.0/Juli 2009. CSR program was available for both ANJA Binanga mill and plantations through contributions to local government and communities, such as:

Provide road maintenance for villages closed to plantations using company’s grader machines

Provide transportation (school bus) and education facilities to play groups, elementary school, junior and senior high school for employees and communities around estates and mill

Provide and improve health facilities for villages closed to plantations

Charity to local community on festival days, such as festival day of Idul Fitri and Idul Adha.

Records of CSR were properly maintained.


Criterion7.0

No new planting planned on any estate included in the scope of this assessment.

Principle 7 is not applicable to this assessment, since no new planting.

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

ANJA has committed to a process of continuous improvement by adopting the RSPO P & C.. The company can clearly

demonstrate improvement in quality, environmental safety and health management system. There was a mechanism

through internal audit that organization regularly monitor and review their activities, develop and implement action

plans that allow demonstrable continuous improvement in key operations. The internal audit was conducted on

February 14-16, 2012 and audit record was maintained. Below are examples of improvement that have been made,

with regards to:

Reduction in use of certain chemicals: No more using paraquat for weeding.

Environmental and social impacts: measured and monitoring the environmental parameter and reported to the local

environmental agency of North Sumatera Province.

Waste reduction: conducted the waste management practices by segregation of waste from its sources.

Pollution and emissions : measured and monitoring the pollution and emissions and reported to the local

environmental agency of North Sumatera Province.

However, the auditor team found that:

There is no appropriate evidence that company has a written monitoring action plan based on the social environmental

impact assessment, and regular evaluations of plantation and mill operations

A Major non conformity was raised. (See NCR-ANJ-07). Both corrective and corrective action has been submitted,

being reviewed and accepted by auditor.

Status : Comply after correction and corrective action.


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3.2. Identified Non Conformances and Noteworthy positive components.

This section gives an over view of new or revised non-conformities raised during this assessment and of

action taken to close out non-conformities rose during the previous assessments.

3.2.1. Detail of Non Conformity.

All raised non conformities are summarized and attached in Appendix 3 Summary of Non-Conformity Report (NCR).


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3.2.2. Resume of Audit Results

Table 3-2 Resume of Audit Results

P&C 1.1 1.2 2.1 2.2 2.3 3.1 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 5.1 5.2 5.3 5.4 5.5 5.6 6.1 6.2 6.3 6.4 6.5 6.7 6.8 6.9 6.10 6.11 7 8.1

Status

1 1 1 3 1 2 2 1 1 1 1 1 2 1 1 2 1 1 1 1 1 1 1 1 1 1 1 1 3 1 NA 3

#NC 0 0 0 1 0 1 1 0 0 0 0 0 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 - 1

RSPO Supply Chain Certification Standard: Module E – Mass Balance

SCC 1.1 a 1.1 b 1.2 2.1 2.2 3.1 3.2 3.3 a 3.3 b 3.3 c 3.4 4.1 5.1 6.1

Status

1 1 1 3 1 1 1 1 1 1 1 1 1 1

#NC 0 0 0 1 0 0 0 0 0 0 0 0 00 0

NO.TE: Audited: “1” Conforming; “2” Minor Non-Conformity; “3” Major Non-Conformity; “NA” Not applicable, “#NC” : Number of Non-Conformities found

AUDIT OUTCOME

P&C audit, 3 Non-Conformities MAJOR

4 Non-Conformities MINOR

SCC audit

3.3module E 1 Non-Conformities MAJOR


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3.3. Status of non-conformities (both minor and major) previously identified

NCR from Certification Assessment :

1. Records of “Monitoring volume POME pada Lahan Aplikasi” were inaccurate, for example : in Division 3 Block 16, during 1-4 March 2012 the total flatbeds applied with POME exceeded the total actual flatbeds which only 1510, whereas during 24-30 November 2011 the total flatbeds applied were only 1422 of 1510 actual flatbeds without any explanation.. (P & C 4.2 MN). The effectiveness of correction and corrective action has been verified by auditor. No new nonconformity. Closed.

2. Organization has policy not to use agrochemicals to maintain oil palms along the riparian buffer zones, however it was found that inorganic fertilizer was still applied, for example on November 2011 in Block 1 and 2 Division 1.(P &C 4.4 MJ). The effectiveness of correction and corrective action has been verified by auditor. No new nonconformity.Closed.

3. Organization has used SIME EBOR BAITS 0.05 BB (active ingredients Warfarin 0.05%) as experimental rodenticide to replace STROM to control rat infestation besides using Tyto alba since November 2011, however, no proper evaluation report to review the effectiveness of the experiment. The rat cencus of attacked area was not conducted regularly every month as required by “SOP-OPR-032 Pengendalian Tikus dengan Rat Bait” (P & C 4.5 MN). The effectiveness of correction and corrective action has been verified by auditor. No new nonconformity.Closed.

4. There was no procedure available for SIME EBOR BAITS 0.05 BB and records of training for foremen and applicators as it was found that the usage records of this rodenticide were not in accodance with the product label. (P & C 4.6 MJ). The effectiveness of correction and corrective action has been verified by auditor. No new nonconformity. Closed.

3.3. Issues Raised by Stakeholders

During annual surveillance assessment 1 the Assesor team did not conduct Public consultation with stakeholders in certain time and place but by interviewing in personal with employees, contractors, labour union, gender representative, or village chiefs near the plantation and reviewed againts previous minute meeting of Stakeholders conducted by ANJA. Subjects discussed during the interview with stakeholders were:

1. Knowledge of RSPO;

2. Benefits of the existence of palm oil plantation on the community;

3. Problems experienced related to the presence / activities of the plantation;

4. The solution to address the problems that occur.

The results of interview with stakeholders are as follows:

1. In general, mostly stakeholders were briefed on issues regarding RSPO, though their understandings were observed to be variable. Participants who were relatively more aware of RSPO were mainly participants living close to plantations, such as labor union, the village chief, and thecommunity leader. They knew this RSPO information from the management/ staff during the socialization of RSPO.

2. Mosty the stakeholders interviewed stated that the existence of oil palm plantation has provided benefits to society. The perceived benefits include:

a. Provision of employment, both directly related to maintenance activities and the cultivation of oil palm. Indirectly through partnership such as procurement of equipment, workmanship maintenance of facilities (roads, bridges, building / office). It is also recognized by the representatives of the Social Service and the local Labor.

b. Improved local economy, especially felt by contractor who supply FFB or other services. Indicators of economic improvement, among others, the condition of the residential houses, ownership of motor vehicles, both motorcycles and cars. Currently almost all owners of plasmas have motorcycles, and quite a number of them own cars. Another indicator is many children can afford to attend school.

c. Improving the economic prosperity and status of the community.

d. Corporate Social Responsibility (CSR) Program

Improvement of road infrastructure.

Improvement of the health service.

Improvement of education.


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Contributions for celebrating the national and religious festivals or other grand activities. The company provides assistance in cash or in kind for religious activities (Eid al-Fitr, Eid al-Adha) and national holidays (Independence Day). Assistance is generally provided based on public requests through proposals.

3. Problems experienced related to the presence / activities of the plantation

There was no significant issue raised during interviews with stakeholders.

4. Certified Organization’s Acknowledgement of Internal Responsibility

4.1. Date of next surveillance visit

The next surveillance assessment will be conducted within 12 month, approximately in September 2014.

4.2. Date of closing non-conformities (both major and minor)

All the minor and major nonconformities have been closed, but the effectiveness will be verified in the next surveillance audit.


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4.3. Formal Sign-off of Surveillance Assessment Findings

I the undersigned, being the legal representative of the inspected company, agree with the contents of this

report and accept the liability in execution of the instructions given in the report.

Signed for and on behalf of

PT. Austindo Nusantara Jaya

Jakarta – November, 2013

Head of Operaions

(Mr.Philip Liu CK)

Signed for and on behalf of PT. TÜV NORD Indonesia – System Certification Management

Jakarta –November, 2013

Lead Auditor

(Wieke Savitri)


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Appendix 1 List of Abbreviations

ANJA PT. Austindo Nusantara Jaya Agri OER Oil Extraction Rate

AMDAL Analisis Mengenai Dampak Lingkungan

(Environmental Impact Assessment)

OHS Occupational Health and Safety

BOD Biological Oxygen Demand OHSAS Occupational Health and Safety Assessment Scheme

BPN Badan Pertanahan Nasional (National Land Body)

P&C Principle and Criteria

CPO Crude Palm Oil PK Palm Kernel

CSR Corporate Social Responsibility PKB Perjanjian Kerja Bersama (Collective Agreement)

EFB Empty Fruit Bunch POM Palm Oil Mill

EMS Environmental Management System POME Palm Oil Mill Effluent

FFB Fresh Fruit Bunch PPE Personal Protective Equipment

GPS Global Positioning System PT Perseroan Terbatas (Limited Company)

HCV High Conservation Value

HGU Hak Guna Usaha (Land Right/ Land Use Title) R&D Research and Development

HIRA Hazard identification and risk assessment RKL Rencana Pengelolaan Lingkungan Hidup

(Environmental Management Plan)

IPM Integrated Pest Management RPL Rencana Pemantauan Lingkungan Hidup

(Environmental Monitoring Plan)

IUP Ijin Usaha Perkebunan (Land use permit) RSPO Roundtable on Sustainable Palm Oil

Jamsostek Jaminan Sosial Tenaga Kerja (Social Insurance for Employees)

RSPO NI

Roundtable on Sustainable Palm Oil National Interpretation

Kapospol Kepala Pos Polisi (Head of Police Station) SA8000 Social Accountability 8000

MOU Memorandum of Understanding SIA Social Impact Assessment

K3 Kesehatan dan Keselamatan Kerja

(Occupational Health and Safety)

SOP Standard Operating Procedure

KER Kernel Extraction Rate UKL Upaya Pengelolaan Lingkungan Hidup

(Environmental Management Effort)

KUD Koperasi Unit Desa (Village Cooperatives) UPL Upaya Pemantauan Lingkungan Hidup

(Environmental Monitoring Effort)

MSDS Material Safety Data Sheet SEL Studi Evaluasi Lingkungan

Evaluation of Environmental Study

NC Non Conformity


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Appendix 2. Summary of the findings for compliance with the RSPO Supply Chain Module E (Mass Balance) ver. November 2011

STANDARD SG MB RESULT

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

√ √

There were sets of SOPs to ensure implementation of Supply

Chain mechanism at mill i.e : SOP “ENG-01 Receiving of FFB”,

SOP-ENG-02 Processing FFB, SOP-ENG-14 Despatching of

CPO”

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.

√ √ The Mill Manager, was appointed to be a person who is

responsible over SCC requirement’s implementation.

1.2

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

√ √ Sampel of Daily and Monthly Production Report, April-August

2013 are available

2. PURCHASING AND GOODS IN

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

√ √

All recording of incoming and outgoing certified and non-certified FFB are documented in the Mill Daily Report (Laporan Harian Pabrik). Yet the weighbridge ticket for transporting FFBs to the mills not indicated status of FFBs of sustainable and non-sustainable FFBs.

A Major NonConformity was raised (NCR-SCCS-ANJ-01). Both

Correction and corrective action has been submitted, verified and accepted by auditor. Status : Comply after correction and corrective action.

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

√ √

Once there is a projected overproduction ANJA has a mechanism to inform CB. The projected overproduction number will be informed directly via email to related CB’s sales person carbon copied (cc.) to related auditor(s) and CB System Certification Manager. The projected overproduction Notification will be attached with the evidence needed to prove the ability of ANJA to achieve an overproduction.

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.

√ √ There was Masterlist of procedures and records, including mass balance supply chain.


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

√ √ There was procedures to maintain records PRS-SDV-001 including mass balance supply chain.

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.

√ √ Can be trace down in “Daily Production Report” and Monthly Production Report 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.

x √ No transaction has been made, will be verified in the next surveillance audit in 2014

c. The facility can only deliver Mass Balance sales from a positive stock. However, a facility is allowed to sell short.

x √ No transaction has been made, will be verified in the next surveillance audit in 2014.

3.4 The following trade names should be used and specified in relevant documents, e.g. purchase

√ √ Actual implementation could only be verified if any transaction has been made in the next surveillance audit.

4. SALES AND GOOD OUT

4.1

The facility shall ensure that all sales invoices issued for RSPO certified products delivered include the following information: a) The name and address of the buyer; b) The date on which the invoice was issued; c) A description of the product, including the applicable supply chain model (Segregated) d) The quantity of the products delivered; e) Reference to related transport documentation.

√ √ No transaction has been made, actual implementation could only be verified if any transaction has been made in the next surveillance audit

5. PROCESSING

5.1

The facility shall assure and verify through clear procedures and record keeping that the RSPO certified palm oil is kept segregated from No.n-certified material including during transport and storage and be able to demonstrate that is has taken all reasonable measures to ensure that contamination is avoided. The objective is for 100 % segregated material to be reached. The systems should guarantee the minimum standard of 95 % segregated physical material9; up to 5 % contamination is allowed.

√ x N/A for Mass Balance


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5.2

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


5.3

In cases where a mill outsources activities to an independent palm kernel crush, the crush still falls under the responsibility of the mill and does No.t need to be separately certified. The mill has to ensure that: ·The crush operator conforms to these requirements for segregation·The crush is covered through a signed and enforceable agreement


6. TRAINING

6.1

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

√ √ Procedure for training is described in SOP Training Human Resources.

7. CLAIMS

7.1

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

√ √ No transaction has been made, actual implementation could only be verified if any transaction has been made in the next surveillance audit


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Appendix 3 Summary of Non-Conformity Report (NCR) P & C

A. Major Non-Conformities (NC)

Major NC:

A certificate of conformance with the RSPO Criteria cannot be issued while any major non-conformities are outstanding.

Major nonconformities raised during surveillance assessments must be addressed within 60 days, or the certificate will be suspended.

Major nonconformities not addressed within a further 60 days will result in the certificate being withdrawn.

NCR No.

Criterion No

NCR Correction Root Cause Corrective Action Conclusion

1. NCR-ANJ-01

2.2 MJ 2 The last monitoring of BPN boundaries pegs was conducted in July 2013, but no record of BPN boundary peg number XLIV HGU 1 which is supposed to be located in Division X West Estate.

During site visit the field staff could not find and show the location of BPN boundary peg number XLIII in Division X West Estate.

Reconduct monitoring BPN boundaries pegs equipped with photographs and maps.

Monitoring of the BPN boundaries pegs was performed by different people so it's hard to find each BPN boundaries pegs.

Always conduct monitoring BPN boundaries pegs equipped with photographs and maps.

Accepted and verified.

2. NCR-ANJ-06

6.10 MJ 2 FFB purchased from outgrowers were classsified as small bunch, medium bunch and big bunch, but no written information of pricing mechanism for small bunch and medium bunch.

Make the FFB pricing mechanism and explanations to third party suppliers regarding the different types of small buch and medium bunch.

The absence of explanation regarding pricing mechanism of purchaced FFB.

Make explanations to third party if there is any changes regarding pricinfg mechanism.


3. NCR-ANJ-07

8.1 MJ 1 There is no appropriate evidence that company has a written monitoring action plan based on the social environmental impact assessment, and regular evaluations of plantation and mill operations.

Have made social environmental impact assessment in specific report.

Social environmental impact assessment is still in the RKL / RPL report.

Will made regular evaluation of plantation and mill operation and monitoring action plan based on the social environmental impact assessment.



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B. Minor Non-Conformities (NC)

Minor NCR: Minor nonconformities will be raised to major if they are not addressed by the following surveillance assessment

NCR No.

Criterion No

NCR Correction Root Cause Corrective Action Conclusion

4. NCR-ANJ-02

3.1 MN 1 There is no review on change of replanting program as stated in the last RSPO certfication audit report. The planting year1988 will be replanted in 2013, but it will be started in 2016 without any written explanation or evaluation for the change.

Written explanation have been made regarding the time change in replanting activities.

Replanting programs have not been reviewed due to the existing data changes.

Replanting program will be reviewed every year.

Written explanation will be made if there is any changes in replanting activities, such as : time, area etc.


5. NCR-ANJ-03

4.1 MN 1 Analytic scale and oven in the laboratory have never been calibrated yet.

Calibration will be carried out in 2014 by preparing budget for calibration in 2014.

Calibration had not been carried out since budget for calibration will be approved in 2014.

Preparing budget for calibration every year depend on the due date.

Accepted, but will be verified in next SA 2.

6. NCR-ANJ-04

4.7 MN 6 During site visit some of workers at kernel station didn’t wear ear plugs while working in high noise level area.

There is no appropriate evidence of Medical record of audio function for workers in boiler, power house, and kernel station and thorax (x-ray) forworker at laboratory and chemical spraying. For example the worker at power house has been worked in this station for eight to nine years and never been checked for audiometric as well as the worker at kernel station who has been worked for four years.

Socialization of wearing PPE

Conduct Audiometric test for workers who work in high noise level area

Workers have not been consistently use PPE while working.

Specific MCU had not been conducted for workers who work in high risk area, only general MCU

Socialization and inspection of OHS implementation will regularly conducted and monitored.

Specific MCU will always be conducted for all workers who work in high risk area.



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5. NCR-ANJ-05

5.2 MN 2 Not all of protected and endangered species equipped with photographs/ pictures.

HCV daily patrol reports made by patrol officers inJuly -August 2013 in West Estate almost everyday found the protected animals such as wildcat, but HCV monthly reports made by Field Assistant never presence of protected animals.

Poster of wildlife have been adjusted to the consultant recommendation in HCV assessment report.

List of protected flora and fauna have been made

First printing posters of wildlife did not conform with the consultant recommendations in HCV assessment report.

Lack of understanding of the HCV patrol officers regarding protected animals and plants in the HCV area.

Dissemination of list of protected flora and fauna. to all HCV patrol officers.

HCV daily patrol report will be verified periodically.


rspo annual surveillance assessment1 public ......revision no.. pt. tÜv no.rd indonesia audit...

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