rspo audit report...(pom) mt/hour address longitude latitude pks maju aneka sawit 45 desa tanah...

RSPO Principles & Criteria Annual Surveillance Assessment Report

Report Number CU817193

RSPOPC-SUM-REPORT.F01 JULY2013 Page 1 of 28

Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia.

Tel: +603-3377 1600 / 1700

RSPO PRINCIPLES & CRITERIA PUBLIC SUMMARY REPORT

ANNUAL SURVEILLANCE ASSESSMENT 2

INDONESIA PKS Maju Aneka Sawit

2013

Report prepared by: Viknesvaran Paramasivan (Lead Assessor)

Certification decision by: Hari Naveen Christopher (Certifier)

Certifying Office

Control Union (Malaysia) Sdn. Bhd. 150-A, 1st Floor, Persiaran Raja Muda Musa,

Off Jalan Sg Bertih, Teluk Gadong, 41100 Klang, Selangor, Malaysia [email protected]

Tel: +603-3377 1600 / 1700

Control Union Certifications

Control Union Certifications is a member of the Control Union World Group - an

international inspection and certification body. CUC performs assessments and

certification in many agricultural based fields such as FSC, RSPO, and Organic

production, Sustainable Textile Production, Organic Exchange, GLOBALGAP, HACCP,

BRC, GMP and GTP.

CUC is accredited by the Dutch Council of Accreditation (RVA) on the European quality standard EN 45011 for the inspection and certification of CUC Organic

program (according to the EU regulation 2092/91) and GLOBALGAP program. When requested a copy of the accreditation certificate can be obtained from CUC.

RSPO Membership Number 8-0025-06-000-00

RSPO Approval Date 12/01/2006

Affiliate Membership http://www.rspo.org/en/member/339

mailto:[email protected]://www.rspo.org/en/member/339





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Table of Contents

PART 1: SCOPE OF THE CERTIFICATION ASSESSMENT AUDIT .............................................................. 4

1.1 COMPANY AND CONTACT DETAILS ....................................................................................................................... 4 1.2 RSPO MEMBERSHIP & CERTIFICATION DETAILS ..................................................................................................... 4 1.3 ANNUAL SURVEILLANCE ASSESSMENT DETAILS ....................................................................................................... 4 1.4 ASSESSMENT TYPE ............................................................................................................................................ 4 1.5 LOCATION OF THE PALM OIL MILL ........................................................................................................................ 4 1.6 PALM OIL MILL OUTPUT AND APPROXIMATE TONNAGES CERTIFIED ............................................................................. 4 1.7 GENERAL DESCRIPTION OF SUPPLY BASE ............................................................................................................... 5

1.7.1 Location of the Supply Base................................................................................................................................. 5 1.7.2 Statistics of the Supply Base and Estimated Tonnes of FFB produced per year ................................................. 5 1.7.3 Percentage of Planted Oil Palm by different Age Ranges ................................................................................... 5 1.7.4 Calculation of the Number of Production Units (N) to Sample for the Mill ........................................................ 6

1.8 PROGRESS OF ASSOCIATED SMALLHOLDERS OR OUT-GROWERS, IF APPLICABLE TO THIS ASSESSMENT .................................. 6 1.9 LOCATION MAP FOR THIS CERTIFICATION UNIT (SEE APPENDIX 1) .............................................................................. 6

PART 2: PARTIAL CERTIFICATION ........................................................................................................ 7

2.1 MANAGEMENT STRUCTURE................................................................................................................................. 7 2.2 NON-COMPLIANCE IDENTIFIED WITH 2.1 ABOVE ..................................................................................................... 7 2.3 SUMMARY OF THE TIME BOUND PLAN .................................................................................................................. 7 2.4 UN-CERTIFIED UNITS OR HOLDINGS...................................................................................................................... 8 2.5 SUMMARY OF THE FINDINGS FOR PARTIAL CERTIFICATION ......................................................................................... 8 2.6 PARTIAL CERTIFICATION AUDIT AGENDA................................................................................................................ 8

PART 3: AUDIT PROCESS...................................................................................................................... 9

3.1 ABOUT THE CERTIFICATION BODY ......................................................................................................................... 9 3.2 AUDIT TEAM .................................................................................................................................................... 9

3.2.1 Qualifications of the Lead Auditor ................................................................................................................................. 9 3.2.2 Qualifications of the Assessment Team....................................................................................................................... 10

3.3 AUDIT METHODOLOGY .................................................................................................................................... 11 3.3.1 General Overview .............................................................................................................................................. 11 3.3.2 Assessment agenda for this Audit ..................................................................................................................... 12

PART 4 ASSESSMENT FINDINGS ........................................................................................................ 13

4.1 LEAD ASSESSOR’S SUMMARY AND RECOMMENDATION FOR CERTIFICATION ................................................................ 13 4.2 SUMMARY OF THE FINDINGS BY PRINCIPLES AND CRITERIA ...................................................................................... 13

Principle 1: Commitment to Transparency .......................................................................................................................... 13 Principle 2: Compliance with Applicable Laws and Regulations .......................................................................................... 14 Principle 3: Commitment to Long-Term Economic and Financial Viability .......................................................................... 15 Principle 4: Use of Appropriate Best Practices by Growers and Millers .............................................................................. 15 Principle 5: Environmental Responsibility and Conservation of Natural Resources and Biodiversity .................................. 17 Principle 6: Responsible Consideration of Employees and of Individuals and Communities by Growers and Millers .......... 19 Principle 7: Responsible Development of New Plantings ..................................................................................................... 21 Principle 8: Commitment to Continuous Improvement in Key Areas of Activity .................................................................. 21

4.3 NON-CONFORMITY RAISED DURING THIS AUDIT AND ANY FROM THE PREVIOUS YEAR, IF APPLICABLE ............................. 22 4.3.1 Non-Conformities Identified during this Audit ........................................................................................................... 22 4.3.2 Non-Conformity Identified during the last ASA, not applicable for MA ..................................................................... 22 4.3.3 Observations Raised During this Audit ....................................................................................................................... 22

4.4 ISSUES THAT WERE RAISED DURING THE STAKEHOLDER CONSULTATION, IF ANY ............................................................ 22

PART 5: RSPO SUPPLY CHAIN CERTIFICATION ................................................................................... 23

5.1 POM INCLUDED IN THE SCOPE OF THE AUDIT ...................................................................................................... 23 5.2 CONFIRMATION OF THE COMPANY’S SUMMARY OF ANNUAL CERTIFIED VOLUME OF RSPO CERTIFIED PALM OIL AND PALM KERNEL OVER A SPECIFIED PERIOD ................................................................................................................................ 23 5.3 SUMMARY REPORT INCLUDING A BRIEF DESCRIPTION OF THE SCOPE OF CERTIFICATION ................................................ 23 5.4 MONTHLY RECORDS OF CERTIFIED FFB RECEIVED, CPO, AND PK PRODUCED SINCE THE LAST AUDIT ................................ 23 5.5 RECORDS OF CERTIFIED CPO & PK SOLD UNDER GREEN PALM TO BUYERS SINCE THE LAST AUDIT, IF ANY ......................... 23 5.6 RECORDS OF CERTIFIED CPO & PK SOLD UNDER UTZ ETRACE TO BUYERS SINCE THE LAST AUDIT, IF ANY .......................... 24 5.7 NON-CONFORMITIES IDENTIFIED DURING THIS AUDIT .............................................................................................. 24 5.8 FINAL CERTIFICATION DECISION BY CONTROL UNION FOR THE RSPO SCCS AUDIT OF THE POM ...................................... 24

PART 6: CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY ........... 25





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6.1 DATE OF NEXT ASA ......................................................................................................................................... 25 6.2 DATE FOR CLOSURE OF NON-CONFORMITIES ........................................................................................................ 25 6.3 SIGNING BY THE CLIENT .................................................................................................................................... 25 6.4 SIGNING BY THE LEAD AUDITOR ......................................................................................................................... 25 6.5 SIGNING BY THE CERTIFIER ................................................................................................................................ 25

PART 7: APPENDICIES ........................................................................................................................ 26

APPENDIX 1: LOCATION MAP FOR THIS CERTIFICATION UNIT ............................................................................................. 26 APPENDIX 2: LIST OF ABBREVIATIONS ............................................................................................................................. 28





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PART 1: SCOPE OF THE CERTIFICATION ASSESSMENT AUDIT

1.1 Company and Contact Details

Company Name: PT Maju Aneka sawit; PT. Globalindo Alam Perkasa and PT Multipersada Gatramegah

Business Address: Spring Tower 04-42, Jl. K.L. Yos Sudarso, Tanjung Mulia, Medan Deli, Medan, Sumatera Utara – 20241, Indonesia

Contact Person: Dr. Gan Lian Tiong

Office Telephone: +62 61 661 5511

E-Mail: [email protected]

Web Site: -

Other Certifications Held: ISCC

1.2 RSPO Membership & Certification Details

RSPO Membership Number: 1-0054-08-000-00

Registered Client Name: PT. Agrowiratama

Certificate Number: C817193CU-RSPO-01.2013

Start Date Of Certificate: 17 June 2011

End Date Of Certificate: 16 June 2016

Date Of Original Certification: 17 June 2011

Scope: Certification of the Palm Oil Mill and Supply Bases

Type Of Certification: Single site

Duration Of Certificate: 5 Years from date of certification

1.3 Annual Surveillance Assessment Details

Dates Of This Audit: 13/05/2013 to 17/05/2013

Audit Number: ASA2

1.4 Assessment Type

This is a RSPO Principles &Criteria Compliance assessment of the palm oil mill and its respective supply bases as listed in this report below.

1.5 Location of the Palm Oil Mill

Name Palm Oil Mill

Mill Capacity

Location GPS Reference

(POM) MT/Hour Address Longitude Latitude

PKS Maju Aneka Sawit

45

Desa Tanah Putih, Kecamatan Telawang, Kabupaten Kotawaringin Timur, Propinsi Kalimantan Tengah, Indonesia

112° 38’ 51.4” E 02° 28’ 41.4” S

1.6 Palm Oil Mill Output and Approximate Tonnages Certified Figures below are from:

Only from certified supply bases (Y/N). YES

Combining certified with uncertified supply bases (Y/N). NO

If the Mill is receiving FFB from uncertified supply bases outside the audit scope, such uncertified sources is highlighted under the following sections as seen applicable:

a. PART 1, Section 1.7 – General Description of Supply Base, b. PART 2: Partial Certification, Section 2.4 – Uncertified Units or Holdings, c. PART 5: RSPO Supply Chain Certification of this report

Projected Production from the last 12 Months (MT)

Actual Production for this Audit Year 2012/2013 (MT)

Projected 12 Months (MT) Forecast Certified in this Report

FFB CPO PK FFB CPO PK FFB CPO PK

191,012 51,573 10,983 205,792 52,472 10,268 202,949 54,796 12,177

mailto:[email protected]





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1.7 General Description of Supply Base

PT Maju Aneka Sawit (PT MAS) has a palm oil mill and its supply bases are Tanah Mas Estate, Alam Sahara Estate (PT Globalindo Alam Perkasa) and Estate I (PT Multipersada Gatramegah). The National Interpretation of RSPO P & C for Indonesia was used to assess the palm oil mill and estates. The area of oil palm planted is 13,008.44 ha (total for PT. Maju Aneka Sawit, PT. Globalindo Alam Perkasa and PT Multipersada Gatramegah). The mill processing capacity is 45 ton FFB per hour.

1.7.1 Location of the Supply Base

OPP

Oil Palm Plantation

Location GPS reference Area Summary (Ha)

Name Address Longitude Latitude Total Mature

OPP 1 Estate Tanah Mas – PT. MAS

Desa Tanah Putih, Kecamatan Telawang, Kabupaten Kotawaringin, Timur, Propinsi Kalimantan Tengah, Indonesia

E 112° 38’ 40.3” S 2° 28’ 38.8” 6,290.95 5,959.62

OPP 2 Estate Alam Sahara – PT. GAP

Desa Natai Baru, Kecamatan Mentaya Hilir Utara, Kabupaten Kotawaringin Timur, Propinsi Kalimantan Tengah, Indonesia

E 1120 44’ 46” S 2

0 36’ 48.3” 2,628.60 2,157.31

OPP 3 Estate I – PT. Multipersada Gatramegah

Jalan Negara (Muara Teweh – Puruk Cahu), KM 32, Desa Karamuan, Kecamatan Lahei, Kabupaten Barito Utara., Propinsi Kalimantan Tengah, Indonesia

E 1140 44’ 38.1” S 0

0 46’ 15.9” 4,088.89 -

TOTAL 13,008.44 8,116.93

1.7.2 Statistics of the Supply Base and Estimated Tonnes of FFB produced per year

OPP Oil Palm Plantation Estimated FFB/Year (MT) Planting Years Cycle (Years)

OPP 1 Estate Tanah Mas – PT. MAS 22,233 2005 – 2013 25

OPP 2 Estate Alam Sahara – PT. GAP 14,344 2005 – 2013 25

OPP 3 Estate I – PT. Multipersada Gatramegah

4,509 2008 – 2011 25

TOTAL 41,086

1.7.3 Percentage of Planted Oil Palm by different Age Ranges

OPP Planting Years by 5 year Ranges

1995-1999 2000 -2004 2005 – 2009 2010 – 2014 Total

OPP 1 - -

5,946.16 (94.5 %)

344.79 (5.5 %)

6,290.95 (100 %)

OPP 2 - -

2,305.56 (87.7 %)

323.04 (12.3 %)

2,628.60 (100 %)

OPP 3 - -

1,327.13 (32.5 %)

2,761.76 (67.5 %)

4,088.89 (100 %)





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1.7.4 Calculation of the Number of Production Units (N) to Sample for the Mill

N = 0.8√Y, where “Y” is the number of units, with the result always to be rounded “up” to the next whole integer. Where only a sample of the supply base is assessed, units not previously assessed, or assessed earlier in the certification program, are to be preferred over those more recently assessed

For the Mill, how many units make up the production base?

Owned estates (Y) N = 0.8√Y Smallholders (Z) N = 0.8√Z

3 2 0 0

Explanation as to the selection of estates sampled

2 out of the 3 estates were assessed.

1.8 Progress of associated Smallholders or Out-growers, if applicable to this assessment

Progress of associated Smallholders or Out-growers towards Compliance with relevant Standards - should be in accordance to the 3 year implementation plan, if applicable to this assessment

N/A

1.9 Location Map for this Certification Unit (See Appendix 1)





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PART 2: PARTIAL CERTIFICATION

The rules for partial certification allow organizations that have a majority holding in and / or management control of more than one autonomous company growing oil palm to certify individual management units and / or subsidiary companies subject to certain rules.

2.1 Management Structure

Section Criteria Yes/No If “Yes” If “No”

2.1.1 Is the certified operation (POM and supply base as detailed above) a stand-alone operation and there are no other plantations or mills owned by the same company?

No Section 2 is

N/A Go to 2.1.2

2.1.2 Is the certified operation part of a simple structure of operations owned by one company?

Yes Go to 2.1.5 Go to 2.1.3

2.1.3 Are there statements of the ultimate controlling shareholders and directors in the managing agency company/companies:

a. Explaining the legal relationship and the management arrangements with the subsidiary companies and / or with any operating groups?

- Go to 2.1.4

Go to 2.2.1

2.1.4 b. A statement of commitment to comply with the spirit of the RSPO for all companies and subsidiaries involved with the growing of oil palm and for the production of palm oil?

- Go to 2.4 Go to 2.2.2

2.1.5 Is there a time bound plan in place for all subsidiaries, estates and palm oil mills?

Yes Go to 2.3 2.2.3

2.1.6 Is the parent company or one of its majority owned and / or managed subsidiaries a member of RSPO.

Yes

2.2 Non-compliance Identified with 2.1 Above

Section Non-compliance findings NC raised Category

2.2.1 There is no explanation as to the company’s structure and therefore it is not possible to conduct an effective audit against the rules for partial certification.

- Major

2.2.2 There is no statement of commitment to comply with the spirit of the RSPO for all companies within the company structure.

- Major

2.2.3 There is no time bound plan in place for the certification for all subsidiaries, estates and mills.

- Major

2.2.4 No applicable membership of the RSPO. - Major

2.3 Summary of the Time Bound Plan

Section Requirement Findings and any action required

2.3.1 Does the plan include all subsidiaries, estates and mills?

No subsidiary under PT. Maju Aneka Sawit (All subsidiaries under PT. Agrowiratama are RSPO certified)

2.3.2 Is the time bound plan challenging? Age of plantations. Location. Mill development. Infrastructure. Compliance with applicable law.

N/A.

2.3.3 Have there been any changes since the last audit? Are they justified?

N/A.

2.3.4 If there have been changes, what circumstances have occurred?

N/A.





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2.3.5 Have there been any stakeholder comments? N/A.

2.3.6 Have there been any newly acquired subsidiaries? No new acquisition.

2.3.7 Have there been any isolated lapses in the implementation of the plan?

N/A.

2.3.8 Has there been any systematic failure to proceed with the implementation of the plan?

N/A.

2.3.9 General statement as to progress made since the last audit?

N/A.

2.4 Un-Certified Units or Holdings

NOTE: Companies may demonstrate compliance by clear evidence of a self-audit (i.e. an internal audit for all subsidiaries, estates and Palm Oil Mills)

Section Requirement Findings and any action required

2.4.1 Did the company conduct an internal audit? If so, has a positive assurance statement been produced?

N/A.

2.4.2 No replacement after dates defined in NI Criterion 7.3 of:

Primary forest.

Any area identified as containing High Conservation Values (HCV).

Any area required to maintain or enhance HCVs in accordance with RSPO criterion 7.3.

N/A.

2.4.3 Any new plantings since January 1st

2010 must comply with the RSPO New Plantings Procedure.

PT Agrowiratama Tahap I, PT Mulia Indah, PT Agrowiratama Tahap II in Sambas, West Kalimantan and PT Globalindo Alam Perkasa Estate Alam Murni, PT Multipersada Gatramegah in Central Kalimantan complied with the RSPO NPP (RSPO NPP for PT Agrowiratama Tahap I was done on 5 – 6 January 2011, PT Mulia Indah was done on 27 – 29 July 2011, PT Globalindo Alam Perkasa Estate Alam Murni was done on 10 – 11 December 2012, PT Agrowiratama Tahap II was done on 11 – 12 December 2012 and PT Multipersada Gatramegah was done on 12 – 13 December 2012)

2.4.4 Any Land conflicts are being resolved through a mutually agreed process, e.g. RSPO Grievance procedure or Dispute Settlement Facility, in accordance with RSPO criteria 6.4, 7.5 and 7.6.

N/A.

2.4.5 Any Labor disputes are being resolved through a mutually agreed process, in accordance with RSPO criterion 6.3.

N/A.

2.4.6 Any Legal non-compliance is being resolved in accordance with the legal requirements, with reference to RSPO criteria 2.1 and 2.2.

N/A.

2.5 Summary of the findings for Partial Certification The audit team assessed compliance with the above requirements during this audit. Failure to address any non-compliance identified may lead to certification suspension.

N/A

2.6 Partial Certification Audit Agenda

Date Location Agenda

N/A -





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PART 3: AUDIT PROCESS

3.1 About the Certification Body

Control Union Certifications is a member of the Control Union World Group – an international inspection and certification body. CUC performs Audits and certification in many agricultural based fields such as FSC, RSPO, and Organic production, Sustainable Textile Production, Organic Exchange, GLOBALGAP, HACCP, BRC, GMP and GTP. CUC is accredited by the Dutch Council of Accreditation (RVA) on the European quality standard EN 45011 for the inspection and certification of CUC Organic program (according to the EU regulation 2092/91) and EUREPGAP program. When requested a copy of the accreditation certificate can be obtained from CUC.

3.2 Audit Team

Lead auditor: Viknesvaran Paramasivan

Team member 1: Mohd. Rizal Md. Kassim

Team member 2: Asidatorn Iamsirisangthong

Team member 3: Selvanathan Grapragasem

Team member 4: Mahaswaran Maliyapan

3.2.1 Qualifications of the Lead Auditor

Requirement Qualifications

A minimum of post high school (post-secondary school) training in either agriculture/forestry, environmental science or social sciences;

Degree in Chemical Engineering and experience in palm oil mills.

At least 5 years professional experience in area of work relevant to the assessment (e.g., palm oil management; agriculture/forestry; ecology; social science);

More than 8 years of working experience in the palm oil industry. Involved in RSPO auditing since 2010. Fully trained in similar agriculture certification programme such as RSPO SCCS and RFS2

Training in the practical application of the RSPO criteria, and RSPO certification systems;

Involved in RSPO assessment since 2010. Member of CUC RSPO audit team. Involved in audits conducted in Malaysia and Indonesia.

Successfully completed an ISO 9000:19011 lead auditors course;

Completed ISO 9001:2008 lead auditor course in June 2009

Training in the practical application of RSPO certification systems.

Involved in RSPO assessment since 2010. Member of CUC RSPO audit team. Involved in audits conducted in Malaysia and Indonesia.

A supervised period of training in practical auditing against the RSPO criteria or similar sustainability standards, with a minimum of 15 days audit experience and at least 3 audits at different organizations.

Involved in audits conducted in for many different companies in Malaysia and Indonesia.

Completion of RSPO endorsed lead auditors course.

Completed RSPO Lead Auditor training in April 2010

Signed code of conduct. Yes

General knowledge of:

RSPO P&C standards, history & its objectives Yes

CUC organizational structure Yes

CUC quality & filing systems Yes

Lead auditor role & report writing Yes

Stakeholder consultation Yes

Certification decision process Yes

RSPO SCCS program manual Yes

Correct use of RSPO trademarks Yes

CV available Yes

Completion of CUC RSPO lead auditor training Completed and passed RSPO endorsed lead auditor training in April 2010.





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3.2.2 Qualifications of the Assessment Team RSPO Requirement Team Member Name Qualifications

Fluent in main local languages and English.

Mohd. Rizal Md. Kassim Fluent in English. Has understanding of Bahasa Indonesia

Selvanathan Grapragasem Fluent in English. Has understanding of Bahasa Indonesia

Mahaswaran Maliyapan Fluent in English. Has understanding of Bahasa Indonesia

Asidatorn Iamsirisangthong Fluent in English.

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

Mohd. Rizal Md. Kassim More than 5 years working experience in forestry and manufacturing firm. Involved in FSC auditing since 2008.

Selvanathan Grapragasem SA 8000 advanced auditor, QMS, EMS & OHSAS Lead Auditor, Working experience in oil palm plantation.

Mahaswaran Maliyapan Master in Business Administration, environment and OHSAS auditor. Working experience in manufacturing firm.

Asidatorn Iamsirisangthong Involved in group audit in organic farming since 2010. Global GAP in 2011 and RSPO in early 2012

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


Selvanathan Grapragasem

SA 8000 advanced auditor, QMS, EMS & OHSAS Lead Auditor, Working experience in oil palm plantation.



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


Selvanathan Grapragasem SA 8000 advanced auditor, QMS, EMS & OHSAS Lead Auditor, Working experience in oil palm plantation.


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









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Environmental and ecological auditing. (For example experience with organic agriculture, ISO 14001 or environmental management systems).




Economic issues. Mahaswaran Maliyapan Master in Business Administration, environment and OHSAS auditor. Working experience in manufacturing firm.


3.3 Audit Methodology

3.3.1 General Overview

The Audit was carried out in conformity with the procedures as laid down in the CUC Procedure Manual and the RSPO Program Manual for the auditors and Certifier. During the Audit the qualified CUC auditors used the RSPO standard endorsed for the country in which the audit took place and recorded their findings. Workers and local communities were interviewed and evidence sought to confirm ongoing compliance, to include:

Chemical stores. Storage, MSDS leaflets, Herbicide mixing areas, PPE, Ventilation, Security.

Field inspections. Herbicide application programs. Harvesting sites and efficiency. Fertilizing operations. SOP. Soil maps. Land preparation. Ground cover. IPM. First aiders and boxes. Ground cover. Soil erosion. Field observations of all operations.

Worker interviews. OSH. Sexual, religious, racial harassment. Pay and contracts. Child labor. First aid. Awareness.

Re-planting sites. Zero burn.

HCV. Identification. Management plans. Environmental Impact Assessments. Implementation.

Riparian zones. Width. Current and future management. Non maintenance regimes.

Water management. Water courses. Water monitoring.

Road maintenance. Run off.

Social amenities. Social Impact Audits.

Local communities. Contributions made. Employment opportunities. Social impacts. Complaints procedures.

Workshops. Oil traps. Safe working environment. PPE. Diesel tanks. Environmental waste management.

Line sites. Interviews with householders. Inspection of water discharge points. Water improvement plans. Waste disposal.

Documentation review. The Palm Oil Mill audit verification included the following activities:

Mill and workshop inspections. Documentation review & worker interviews.

Mill. SOP. Safe working environment. Gen sets. Walkways. Signs. EFB. POME treatment. Emissions. Mass balance. Diesel tanks. PPE. Fire extinguishers. First aiders and boxes. Fuel and water usage.

OSH. Training. Management structure. First aiders.

Full document review. Completion of the checklist. Review and documentation of evidence. All aspects of applicable RSPO P&C.

Worker interviews. OSH. Sexual, religious, racial harassment. Pay and contracts.

Compliance against the RSPO SCCS certification scheme. Verification: Verification of implementation was done through field observations, workshop and chemical store inspections, worker and community interviews and mill inspections as summarized above.





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3.3.2 Assessment agenda for this Audit

Date Auditor Location Main activities

13/05/2013 All auditors Maju Aneka Sawit Mill

08.30 Opening meeting Chaired by the audit team leader

Introduction by team leader

Presentation by respective managers

Presentation of Palm Oil Mill's source of FFB by respective managers

Viknes Mahas Selva Rizal

Asidatorn

Alam Sahara Estate

Field operations.

Worker interviews

Chemical stores

Workshops

Housing

Medical

Schools

Local communities

Environmental

14/05/2013 Viknes

Mahas Selva Rizal

Asidatorn

Maju Aneka Sawit Mill

Supply Chain Certification Assessment of the POM (RSPO SCCS) Mill inspection

Workshops

Stores

POM application

Document review Field operations (as above)

15/05/2013 Viknes

Mahas Selva Rizal

Asidatorn

Sebabi Estate Office

Partial Certification Review with client representatives Field operations (as above)

16/05/2013 Viknes Mahas Selva Rizal

Asidatorn

Multipersada Grahamegah

Estate

Field operations (as above)

17/05/2013 All auditors Maju Aneka Sawit Mill

Preparation for closing meeting Additional field visits and meetings with managers as necessary Closing meeting Chaired by the audit team leader

Welcome and introduction by the team leader

Presentation of findings by the audit team

Questions and answers

Final summary by team leader End of assessment





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PART 4 ASSESSMENT FINDINGS

4.1 Lead Assessor’s Summary and Recommendation for Certification

The mill and supply bases visited (as per the above Tables 1.5 and 1.7.1) and were assessed at field, office, facilities, stores and a document review was carried out in accordance to the RSPO principles and criteria. The subscribed RSPO management system’s documentations seen with minor changes that due to internal external influenced factors that in relation to scope of certification. Specific evidence was recorded for estate and mill. Interviews with Estate Managers, Mill Manager, members of workers union and committee took place in both formal and informal environments and worker interviews were conducted at the supply base and the mill. The management is highly committed in maintaining the RSPO system by adopting to continuous improvement programs. There was no complaint or feedback received during the field assessment when interviewing with the external stakeholders. For further clarification on Partial Certification, see PART 2 above. The management continually monitoring the established KPI / objectives that significantly rules the achievement of company’s corporate policy on RSPO. The mill is fully verified for RSPO SCCS system verification and it is found to be in full compliance. See PART 5 below.

It is therefore the recommendation of the lead assessor that a certificate of compliance is maintained. Signed:

Name: Viknesvaran Paramasivan Date:17/05/2013

4.2 Summary of the findings by Principles and Criteria Over the 5 year period of the life of the certificate, there will be 4 annual surveillance audits

Identified Non-Conformities and noteworthy Positive and Negative Observations.

The RSPO require that this report contains findings by each principle and some example criteria. Please see table below.

Principle 1: Commitment to Transparency

Criterion by Audit

Summary Requests made by stakeholder were responded to and all these are well documented. Relevant documents are made publicly available. The mill and estates have demonstrated full compliance to Principal 1

ASA 2 1.1 The mill and estates have a ‘Request and Response’ logbook that records all requests made and the corresponding action that was taken. Records are maintained and it details the date of request, person who made the request and what was the nature of the request. Record of action that has been taken to fulfill the request and acknowledgement by the person who made the request and an estate or mill executive is also recorded in the logbook. All records are kept for at least ten years.

ASA 2 1.2 The following documents were made publicly available in the mill and estate offices:

Land titles / user rights

Safety and health plan

Plans and impact assessments relating to environmental and social impacts

Pollution prevention plans

Details of complaints and grievances

Negotiation procedures All requests for documents will have to go through the mill or estate managers. They will make the decision as to whether the information can be shared to or viewed by the person requesting the information or document. The RSPO Master List of Documents stipulates whether the documents can be





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made publicly or kept confidential.

Principle 2: Compliance with Applicable Laws and Regulations

Criterion by Audit

Summary

The mill and estates have demonstrated compliance to all applicable local, national and international laws. Legal ownership of land and its land use is clearly demonstrated through the respective land titles. Boundaries have been clearly demarcated. There have been no land disputes or claims involving the mill and estates.

ASA 2 2.1 The mill and estates have register all applicable laws and regulations, among others:

UU No. 23 tahun 1997 tentang Lingkungan Hidup.

UU No. 41 tahun 1999 tentang Kehutanan.

UU No. 13 tahun 2003 Ketenagakerjaan.

UU No. 18 tahun 2004 tentang Perkebunan.

PP No. 27 tahun 1999 tentang Pelaksanaan AMDAL.

UU No. 1/1970 tentang Keselamatan kerja.

UU No. 3/1992 tentang Jaminan Sosial.

PP No.8/1981 Perlindungan Upah.

Permen No. PER-01/MEN/1999 tentang Upah Minimum.

UU No. 7 Tahun 1984 Ratifikasi Convention on the Elimination of All Forms of Discrimination against Women (CEDAW).

UU 18 tahun 2004 tentang Perkebunan Kelapa Sawit.

All applicable permits and licenses for the mill and estates are clearly displayed in the respective offices. Records of expiry date of these permits and licenses are kept in the office and monitored to ensure that they are renewed well before the expiry dates so that there will be no lapses in the compliance to Indonesian government laws and regulations. The Humas [Hubungan Masyarakat / Public Relation Department] whom in Head office Medan will analyses the applicability of the law on the operation and where applicable when there is any changes in the law and regulations. All operating units will also receive an official letter from the Legal Department of the Head Office informing them regarding any changes or amendments in laws and regulations from time to time. It was determined through document review and interviews that these changes have been fully implemented in all estates and mills.

ASA 2 2.2 The mill and estates have demonstrated legal ownership of their land by having legal land titles to the land. All land titles demonstrate the right to use the land and clearly mentions the fact that the land is to be used for palm oil cultivation only. The land titles are kept in the estate office and were shown during the audit. Evidence of annual payment of land tax is available in the form of receipts. The estate boundary is well demarcated with boundary stones surrounding the land. The boundary stone clearly states the GPS coordinate of that particular point. Maps clearly showing the estate boundary were also presented in the estate office.

ASA 2 2.3 Procedure on land compensation is in place which detailed the free, prior, and informed consent [FPIC] process. The process of handling Land Claim is documented with negotiation letter and with the amount agreed. (Proses Penanganan Klaim Lahan). Company has SOP of Land Acquisition No. MAS-SOP/01.01.1.0 showing flow chart to make a negotiation in resolving any land conflict. The entire person received the compensation has agreed by signing the agreement with company. No case of double compensation made by company.





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Principle 3: Commitment to Long-Term Economic and Financial Viability

Criterion by Audit

Summary The annual budget and 2 years projections for the mill and estate that details revenue and costs are available. Replanting programme for the estates for the next five years is also available.

ASA 2 3.1 The annual budgets for 2013 and 2 year projections until 2015 is available and was presented at all operating units. The budgets and projections detail the FFB, CPO and PK to be produced, revenue and operating costs. Estates have no replanting programme.

Principle 4: Use of Appropriate Best Practices by Growers and Millers

Criterion by Audit

Summary

The mills and estates have a complete set of SOP strictly adhered to and continuously monitored. Soil fertility is being maintained in the fields and erosion prevention is constantly carried out. IPM is being implemented in all the estates and the use of chemicals are in accordance with the regulations. There is a comprehensive OSH policy and is being implemented throughout the estate and mill. There are some inconsistencies with HIRARC and an observation was raised for this aspect. Trainings are being carried out as per the Annual Training Plan.

ASA 2 4.1 The mill has all its SOP in place and these SOP covers all mill operations from FFB reception right until mill effluent treatment. These SOP details the procedures to run each mill operations in an efficient and safe manner. These SOPs are implemented through maintenance and record keeping of forms and data for, FFB incoming records, boiler smoke density records, sterilizer temperature and time records, steam flow record, water usage records, chemical test records, process control, production report & CPO stock inventory, spare parts inventory records and so on.

Estates have the Group Agricultural Policy, which contain all sub sections of the process from nursery, land clearing, land conservation, distance of planting, maintenance, pest control, fertilizer application and harvesting (MAS-POD/02.01/2.0). Random checked with :

GAP Planting – POD/01.01/2.2.1 Revision 1 dated 10/05/2013- covering plantation from land clearing.

GAP – Nursery - POD/01.01/2.1.1 Revision II dated 26 Mar 2013

GAP - Drainage – POD/01.01/2.2.3 – issued on 15 August 2001.

GAP- Conservation Area – POD/01.01/2.3.1 Revision I dated 02 Feb 2012.

GAP – Harvesting – POD preparing before harvesting, cutting, harvested and Pruning.

ASA 2 4.2 Soil surveys and foliar sampling were carried out by JH Agricultural Services on an annual basis. Records of these were shown in the estate offices. Through these surveys and analysis, the optimum fertilizer to be used is recommended to cover the nutrient deficiencies that may exist for the palms. Application of EFB is also recommended to reduce the usage of inorganic fertilizers. Checks on the records of fertilizer application indicate the fertilizer application is done based on the recommendations. Soil maps such as the general soil map, slope classes map and elevation map are also available and presented. These maps are used to provide general recommendations for soil and water management practices and to identify solutions to overcome soil limitations.

ASA 2 4.3 Soil erosion is prevented through the following methods:

The planting of cover crops such as Mucuna bracteata and Pueraria javanica. The areas being planted with these cover crops are recorded in the monthly record books and marked on maps.

The presence of road maintenance programme. These road maintenance





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programme detail the type of road maintenance works to be carried out in each estate block and the cost involved in doing so. Budgets and actual expenditure for road maintenance works were presented.

The application of EFB and frond stacking on slopes. These not only minimizes erosion but also enhances soil fertility.

Control of soil erosion is in accordance with the guidance stipulated in the SOP. Soil maps and topography maps that clearly state the elevation and types of soil are also available in the estate offices.

ASA 2 4.4 Riparian zones are maintained along the main rivers and green conservation belt is visible in field inspection. A 100 meter zones were maintained on the left and right side of the river. Sign boards are available to demarcate the buffer zones. There are no bunds, weirs nor dams that have been constructed along waterways in the estates.

Field visits to the estates confirmed this fact. For the mill, the FFB processing water analysis carried out every 6 months, with results are within the parameters. Rainfall data is collected and monitored on a daily basis. There are no water drainage into protected areas. Water management plans for the mill and estates were sighted.

ASA 2 4.5 IPM plan is documented as per the Good Agricultural Practices which includes beneficial planting and the use of biological control as opposed to chemical control of pests. Planning and realization of IPM programme were monitored by mapping the beneficial plant to be planted with types of plant. The plans are monitored by daily completion of planting, expressed in meter of plants planted.

The locations where barn owl cages are built are also mapped in each field and monitoring are carried out by census where it records the division, area size, block no, month erected, box no, development stages of the owls(eggs, immature, mature), box condition, condition around the box. The establishment of beneficial plants and barn owl breeding are measures taken in assisting the control of leaf pest and rat populations. Trainings are given to all staff on IPM. Pesticide toxicity units are monitored by each active ingredient and it is calculated based on LD 50(Mg/Kg), chemical usage, total Ai used, Ha planted, FFB produced, pesticide usage (L/Ha), L/ton and finally result shown in Pesticide toxicity units monitored (Kg/LD 50/FFB) in monthly basis and to date.

ASA 2 4.6 The company only use the agrochemicals approved by WHO and local authority. The chemicals used for the targeted species are proven by the records. All wastes are disposed through an agent named PT. Nazar where it holds the valid permit.

During the interview with the workers in fields, most of them are able to understand the content of SOP. During the inspection, the store are in proper condition complete with bund, good ventilation, sufficient spillage kits such as saw dust, rags, mop, bilingual [English/Malay]MSDS or CSDS in place at suitable locations.

The list of pesticide used (approved by WHO) for estates has been updated on April 2013 and approved by estate managers. The company has stopped using parquet since 01/01/2011. All other chemicals used and in stock are under class II and below. Only circle, spot and path spraying and confirmed no aerial application.

Annual Medical Surveillance for 2013 was done for all the sprayers, manuring gang, storekeepers and mill laboratory workers. Medical surveillance records were shown in the mill and estate offices. There are no pregnant workers





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who were handling pesticides in the estates. CHRA for the mill and estates were conducted and all recommendations of the CHRA were adhered to. The quantity of active ingredient of pesticides and herbicides used are recorded and are kept for at least 5 years.

ASA 2 4.7 The mill and estates adhere to the Safety and Health Policy of the Musim Mas group. The mill and estate have conducted HIRARC for their operations. The risk assessment covers all existing activities in estate. The HIRARC includes identification of the hazards, its impact, risk analysis for probability and severity, recommended risk control and person in charge for implementing the recommended controls.

Trainings for workers to ensure safe working practices for the handling of chemicals and pesticides are carried out periodically and documentation of these trainings are recorded with the training agenda, attendance lists and photographs. PPE issuance records for each worker were complete with the type of PPE issued, date and signature of the workers upon receipt of the PPE. These records were shown in the mill and both estates. PPE issued is in tandem with the HIRARC and company policy.

Safety and health committee meetings were held once in 3 months. These meetings discussed workplace inspection, workers medical check-up, PPE usage and accident prevention, OSH policy, review of health hazards in selective operations, review of chemical health risk assessment (CHRA), annual medical surveillance as per CHRA, safety performance, training on safety and health, safety barriers, emergency and response plan. The person-in-charge of OSH is the estate and mill manager.

Estate has Safety Committee with representative from all levels of workers. There are workers who are trained in first aid by the doctor and Hospital Assistants in the estates. The mill and estates have first aiders present in the mill and field. First aid boxes were available and filled with the necessary medications. Records of accidents are maintained by the mill and estates. All workers are covered with JAMSOSTEK insurance and proof of payment and claims in the event of an accident was shown in the mill and estate office.

ASA 2 4.8 The mill and estates have a comprehensive annual training plan for its staffs and workers. The training plan for 2012 and 2013 was presented. Trainings conducted were recorded in the various trainings record books and it was complete with attendance records, training materials and photographs of the training. The mill and estates conducted trainings, among others, for:

The appropriate use of PPE

First aid and fire drill

The implementation of SOP for operations such as harvesting, pruning and manuring

Safe handling of chemicals and fuels

Hazard identification, risk assessment and control (HIRARC)

Principle 5: Environmental Responsibility and Conservation of Natural Resources and Biodiversity

Criterion by Audit

Summary

Environmental Impact Assessment has been carried out by the mill and estates. A comprehensive identification of all waste has been recorded and scheduled disposal of waste has been carried out by an approved and registered collector. Monitoring and analysis of waste is carried out regularly.

ASA 2 5.1 AMDAL report and Dokumen Pengelolaan dan pemantauan Lingkungan – DPPL (Environmental and Social Impact Assessment) is available and approved by Head of Kabupaten Kotawaringin Timur. Regular reporting in every six month for both estates and mill through RKL/RPL. Latest UKL/UPL was carried out for 2

nd semester of 2012. UKL/UPL assessment is carried out based on

maintenance and monitoring of environment surrounding the mill and estates





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, aspects and impacts assessed such as surrounding air quality, fire potential, impact to water course, social aspect and work accidents. Mill will generate the action plan based on result and conclusion made by the assessment.

ASA 2 5.2 The company’s sustainability department and Aksenta have carried out the HCV assessment. In both HCVF assessments there were no forest areas that have been converted since November 2005 in PT MAS, PT GAP and PT MPG. Management & monitoring plans were developed based on the HCV consultants’ recommendations and these were inspected during the document review.

The management plan of HCV is updated every year and monitoring of HCV is conducted monthly. There are 13 protected species recorded in the monitoring of wild life, consist of species such as: Burung madu penganten (Nectarinia sperata), Elang ular bido (Spilornis cheela), Kangkareng hitam (Anthracoceros malayanus), Elang Tikus (Elanus caerulius), Elang Ikan (Ichthyaeutus ichthyophaga), Raja Udang Meninting (Alcedo meninting), Pekaka Emas (Pelargopsis capensis), Enggang Klihingan (Anorrhinus galeritus) and mammals such as Kelasi (Presbytis rubicunda), Orangutan (Pongo pygmaeus), Owa Ungko (Hylobates agilis), Macan Akar (Prionailurus bengalensis) and Beruang Madu (Helarctos malayanus).

A list of all local laws related to conservation is prepared and the evidence of implementation on the location is recorded. i.e. UU No. 5, 1990 Article 21 which is related to conservation of natural resource and ecosystem. Animal and habitat protection plan based on relevant law and regulation is available. The requirements by laws were matched against the action required and taken in the HCV management.

Regular review of the HCV monitoring results are carried out by the management at site and by the Sustainability Department. Signage to create awareness of any illegal hunting are placed around the HCV areas. The Head of Sustainability, Dr. Gan Lian Tiong oversees the HCV implementation programme.

ASA 2 5.3 Waste and pollution mapping identifies domestic house hold wastes, agrochemical containers, used oil, battery, spoiled light, filter, clinical waste and so on. The mill and estates have procedures on how to handle wastes and their storage. The waste handling and storage is scheduled and handled in accordance to the Scheduled Wastes regulations 2005. A logbook is used to record all wastes generated. Shell and fibers are recycled in the mill. Domestic waste goes to landfill. EFB is being sent to the estates for mulching. Decanter solids and POME are also being applied in the field.

ASA 2 5.4 The renewable energy sources in the mill are fiber an average of 0.35 tonnes/MT FFB and shell with an average of 0.05 tonnes/MT FFB for boiler. Monthly fossil fuel usage in estate recorded and documented effectively. Record of fossil fuel well updated and observed during audit. Bio Gas plant which uses methane gas captured from the effluent ponds has been commissioned on June 2012.

ASA 2 5.5 No replanting in near future. Zero burning policy stated clearly and it has been implemented. Briefing on fire fighting to the employees and surrounding community was carried out. The simulation training was conducted attended by entire fire fighting team members.

Equipment for fire fighting is available at location, such as vehicles, fire extinguishers and water pumps was observed on each department or work area based on risk assessment. Procedure has been classified by type of fire, area of fire, identified potential area. Fire prevention steps and fire handling are as per (MAS- POD/01.01/5.5.0).





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ASA 2 5.6 Mill emissions source is identified at each operating station and documented such as fiber, shell, scrap iron, EFB fiber, effluent, schedule waste, waste oil from diesel tank, and emission from generator set and Boiler, boiler ash, dust from the blower. Daily and monthly summary on smoke density. For air and ambiance twice per year.

Monitoring of pollution and emission has been assessed by government as mentioned above, collected emplacement waste to TPA (Tempat Pembuangan Akhir), separate waste of organic and inorganic, containment bund of waste,fuel,oil trap and pesticides store are recorded and available in place.

Principle 6: Responsible Consideration of Employees and of Individuals and Communities by Growers and Millers

Criterion by Audit

Summary

The mill and estates have conducted the social impact assessment in a participative manner. The relevant policies are in place and are fully implemented across the board. Communication and consultation as well complaints and grievances procedure are well communicated and adhered to. There are no evidence of workers been discriminated against in any way and all are being paid their fair wages.

ASA 2 6.1 The mill and estates have conducted their SEIA for 2013. The SIA details the impact of operations and new activities to the social well-being of the workers and the community and steps that need to be taken to reduce any negative impacts should there be any. The risk assessment based on HACCP principle, potential impact of water, air, type of impact, handling, type of action. Summary of the assessment at the end of the report including recommendation. Regular monitoring and management of social impact, with the participation of local communities is carried out by using questionnaires for the local community to feedback on the impact of the company’s daily operation, conducted twice a year. The company makes a point to invite local people to work in the company.

ASA 2 6.2 The mill and estates have a communication and consultation procedure in place and this was sighted in their respective offices. The procedure for communication and consultation is as follows:

Receipt of communication from the stakeholder by the nominated plantation management official.

Communication will be recorded and will be attended to and resolved within 30 days.

If the matter cannot be resolved within 30 days, all the related document will be send to the company secretary for further action.

The matter will be forwarded to the Grievances Executive Committee who will decide on the action to be taken.

Action that has been decided by the Executive Committee will be carried out and outcome of the resolution will be documented and stakeholder will be informed accordingly.

Should the outcome be not resolved to the mutual satisfaction of the stakeholder and the company, it will then be dealt with under the relevant provisions of the law.

The nominated management official that is responsible for handling matter pertaining to communication and consultation with stakeholders particularly external stakeholders are the estate and mill manager. A complete list of stakeholders covering mill and estate employees, contractors and suppliers, education and medical facilities and government agencies are available and was sighted in the mill and estate offices.





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ASA 2 6.3 The mill and the estates have a complaints and grievances procedure that serves as the SOP for handling of complaints and grievances from both internal and external stakeholders. This procedure has been displayed in the offices and also on notice boards around the mill and estates. A complaint and grievances logbook is kept in every mill and estate and it contains the details of the complaints made, the complainant or aggrieved party, the action taken to resolved the complaint or grievance and the date the action was taken. All complaints and grievances were promptly attended to and records of this were sighted in the mill and estate offices. Workers who were interviewed confirmed that they are aware of the complaints and grievances procedure and how to channel their grievances.

ASA 2 6.4 Procedure of negotiating includes land valuation, company set values, and negotiation protocol between two parties. The responsible party is the Humas (Industrial Relation) Dept. When the negotiation is agreed by both parties then negotiation is sent for approval by GM Humas who will check if the land title is under the claimant.

ASA 2 6.5 All mill and estate workers are being paid wages in accordance with the minimum wage set by the Kalimantan Tengah provincial government. Contract of service and salary slips for workers were checked and workers were paid the same amount of minimum wages which is currently Rp 1, 688,960/month. All wage rates, benefits and working conditions are stipulated in the contract of service of the workers. There is a clause in the contract of service stating that whatever is not mentioned in the contract of service will be covered by the relevant labour regulations. Salary slips clearly shows the calculations of gross salary, all deductions and net salary of a worker. Workers interviewed confirmed that they are being paid more than the stipulated minimum wage and that they understand all the deductions being made.

All workers were also provided with adequate housing that exceeds the requirements of the law. Each unit of quarters will be occupied by a maximum of 2 workers per room; a 3 room quarters will house a maximum of 6 workers. All quarters are provided with free electricity and treated water supply. Repairs to any damage in the quarters are done without any cost to the workers. Interview with workers have confirmed that they are indeed satisfied and comfortable with the quarters provided.

ASA 2 6.6 The mill and estates adhere to The Freedom of Collective Association of Employees that recognizes and allows the freedom of association and collective bargaining of its employees. This policy is displayed in the mill and estates and has been communicated to all workers and staff. Mill and estate workers are free to bargain collectively by forming groupings on their own to collectively bargain with the management of the mill or estates.

ASA 2 6.7 The Child Employment Policy explicitly prohibits under-aged children from working in the company. All mill and estate adhere to this policy. There are no children below ages of 18 working in the mill or estates and this was proven through the checking the list of employees as well as their bio-data and through field visits.

ASA 2 6.8 The Equal Opportunity policy is clearly displayed in the office and on the notice boards around the estates and mill. Both local and foreign workers enjoy the same scale of pay and provided with equal housing and work facilities. This was confirmed though interview with workers from both the mill and estates and also through verification of contracts of service and pay slips of workers. No evidence of discrimination based on race, skin colour, religion, gender, national origin, ancestry, disability, marital status, and sexual orientation was found in both the mill and estates.

ASA 2 6.9 The Policy on Sexual Harassment, Violence and Reproductive Rights has been





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displayed at all estates and mill. This policy has also been communicated to all staff and workers and this was evident through the training records. Gender committees have been established in the mill and both the estates. A specific grievance mechanism for workers to voice their grievances with regards harassment of a sexual or violent nature has been established.

Under this mechanism, the aggrieved worker will lodge a complaint or grievance directly to the Chairperson of the Gender Committee and the chairperson will then bring this matter up with management of the estate or mill and this matter will be deliberated within closed doors in a meeting. Workers interviewed were aware of the policy against Sexual Harassment and Violence, the establishment of the gender committee at every operating unit and the specific grievance mechanism.

ASA 2 6.10 PT MAS mill only receives FFB from its own estates. As such there is no specific contract for the estates due to the fact that the estates will deliver 100% of its FFB to the mill.

ASA 2 6.11 The mill and estates are committed and have contributed to local development. The Response and Requests logbook and letters of contributions detailing the type, purpose and amount of contributions were sighted in both operating units.

Principle 7: Responsible Development of New Plantings

Criterion by Audit

Summary Oil palm plantings are from the land purchased from the local communities. These lands have been previously planted with other crops such as rubber, cash crops and shrub land.

ASA 2 7.1 AMDAL and Dokumen Pengelolaan dan pemantauan Lingkungan – DPPL is made available. Reporting of every six month for both estates and mill through RKL/RPL. Latest UKL/UPL carried out for 2

nd semester of 2012.

ASA 2 7.2 Soil surveys carried out by JH Agriculture Services. The conclusion of the survey report is that the result of the survey reveals that the soils in PT MAS have no major limitation to oil palm growth.

ASA 2 7.3 There were no forest areas that have been converted since November 2005. The lands were on land purchased from the local communities’ land planted with rubber, cash crops and shrub land etc. The company has carried out HCV assessments internally and by Aksenta consultant before planting. HCV maps are available. Management plans and monitoring plans were developed based on the HCV consultants’ recommendations and these were inspected during the document review. The management plan of HCV updated every year and monitoring of HCV is conducted by monthly. Also refer to HCVs described in criterion 5.2.

ASA 2 7.4 As per JH Agriculture recommendation, there are no fragile soils. Terracing implemented above 6° as per the topographic map. Field inspection confirmed on the implementations. No peat land noted in the field.

ASA 2 7.5 AMDAL, Dokumen Pengelolaan dan pemantauan Lingkungan and Laporan Penilaian Dampak Sosial (social impact assessment) indicating positive and negative impact.

ASA 2 7.6 No customary right land identified. Procedure of negotiating includes land value, compare with company set value, and negotiating takes place between two parties, if agreed by both parties then negotiation done by Humas, & approved by GM Humas to identify the land title is under the claimant. Procedure of negotiating includes land valuation, company set values, and negotiation protocol between two parties.

ASA 2 7.7 Zero burning policy is in place and implemented.

Principle 8: Commitment to Continuous Improvement in Key Areas of Activity

Criterion by Audit

Summary All the operating units are regularly monitoring and review their activities and develop and implement action plans that allow demonstrable continual





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improvement in key operations such as in minimizing use of certain pesticides, environmental impacts, maximizing recycling and minimizing waste or by-products generation, pollution prevention plans.

ASA 2 8.1 The mill and estates have programmes in place to continually reduce their pesticide and herbicide usage, wastes generated and pollution. Wastes are also being converted into fertilizers such as EFB for EFB mulching in the field, old tires being used for land and garden beautification projects. Environmental and social impact assessments are conducted to ensure that negative environmental and social impacts are being reduced and mitigated.

4.3 Non-conformity Raised During this Audit and Any from the Previous Year, if applicable This section gives an over view of new or revised non-conformities raised during this audit and of action taken to close out non-conformities raised during the previous audits, if applicable

If a minor-non-conformity raised at the last audit, is not closed out, then this will be raised to Major status and the company given 60 days to close this out.

The NC number is comprised of 2 parts to include the year in which the NC was raised as well as a sequential number.

4.3.1 Non-Conformities Identified during this Audit

Non-were raised during this audit.

4.3.2 Non-Conformity Identified during the last ASA, not applicable for MA

Non-were raised during the last audit.

4.3.3 Observations Raised During this Audit

None were raised during this audit.

4.4 Issues that were raised during the Stakeholder Consultation, if any Stakeholders were either informed by the client or by Control Union via the RSPO website.

For Main Assessments, a 30 day Stakeholder consultation announcement is published on the RSPO website prior to the

audit. The same announcement is circulated by the client prior to the audit

For subsequent Annual Assessments, it is based on stakeholders reading the approved public summary reports available

on the RSPO website, the client’s procedures in receiving on-going feedback or if feedback was sent directly to Control

Union prior to an audit or thorough RSPO complaints procedures.

During each assessment, the audit team will review the company’s implemented procedures in receiving feedback and will

execute field visits and interviews. Not limited to the following questions, any feedback received is reviewed and

summarized in this summary report for either Part 2 – Partial Certification or Part 4 – Assessment Findings above or noted

below, if applicable:

1. Do you have any remarks on the RSPO standard?

2. What is your relation with the applicant?

3. Are there any plantation or mill management practices that affect you?

4. Do you consider any management is in conflict with the RSPO principles and criteria?

5. Do you have any suggestions for management?

6. Are you aware of any HCV in the plantations or in adjacent land?

7. Are you aware of any endangered or rare species?

8. Are there any adverse (or positive) effects on local communities?

9. Additional comments?

11. Do you have any comments about the assessment team and would you like to meet with them?

12. Do you have any comments for the client’s management of any other plantations?

Subject raised Company response and proposed action to be taken

Audit team findings

NIL NIL NIL





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PART 5: RSPO SUPPLY CHAIN CERTIFICATION

The palm mill mentioned in the scope of the audit was audited against the requirements of the following: RSPO Supply Chain Certification Systems. November 2011 RSPO Supply Chain Certification Standard. November 2011

5.1 POM Included In The Scope Of The Audit

Name Palm Oil Mill

Mill Capacity

Location Supply Chain Model

(POM) MT/Hour Address (IP or SG or MB)

PKS Maju Aneka Sawit

45

Desa Tanah Putih, Kecamatan Telawang, Kabupaten Kotawaringin Timur, Propinsi Kalimantan Tengah, Indonesia.

IP

5.2 Confirmation Of The Company’s Summary Of Annual Certified Volume Of RSPO Certified Palm Oil And Palm Kernel Over A Specified Period

Product CPO (MT) PK (MT) Specified 12 month period

CU Code

POM 1 52,472 10,268 Actual volumes between 17/06/2012 to 16/06/2013. See also 1.6 above.

5.3 Summary Report Including A Brief Description Of The Scope Of Certification

A full RSPO SCCS certification audit was used during this annual assessment and the findings support the certification based on supply chain model listed above.

5.4 Monthly Records of Certified FFB Received, CPO, and PK Produced Since the Last Audit

No MONTH-YEAR Certified Supply Bases (MT) Certified CPO (MT) Certified PK

1 17-30 June 2012 4,567.470 1,115.805 184.375

2 July 2012 12,846.450 3,043.643 534.856

3 August 2012 13,816.660 3,327.445 574.095

4 September 2012 17,979.160 4,442.973 816.856

5 October 2012 20,954.220 5,239.822 972.954

6 November 2012 21,684.670 5,561.362 1,018.114

7 December 2012 20,332.180 5,285.890 1,017.261

8 January 2013 17,082.100 4,373.610 865.300

9 February 2013 17,719.010 4,484.624 916.477

10 March 2013 17,916.250 4,639.495 985.557

11 April 2013 18,802.010 4,997.621 1,057.768

12 May 2013 15,040.567 4,060.953 902.434

13 01 - 16 June 2013 7,032.490 1,898.772 421.949

TOTAL 205,773.241 52,472.015 10,267.996

5.5 Records of Certified CPO & PK Sold under Green Palm to Buyers since the Last Audit, if Any

No Buyers Name Green Palm Trading No Certified CPO

(MT) Sold Certified PK (MT) Sold

1 Euro Cakes S.P.A. 1952/2003/2954 - 100 (PKO)

2 Industries Catala S.A. 3928/3229/5495 - 50 (PKO)

3 Industries Catala S.A. 3929/3229/5496 - 50 (PKO)

4 Fonterra Australia Pty. Ltd. 3958/3214/5488 - 90 (PKO)

5 Fonterra Australia Pty. Ltd. 3979/3214/5516 - 175 (PKO)





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5.6 Records of Certified CPO & PK Sold under UTZ eTrace to Buyers since the Last Audit, if Any

No Buyers Name UTZ eTrace Trading No Certified CPO

(MT) Sold Certified PK (MT) Sold

1 PT Musim Mas - Belawan - - 9,107.086

5.7 Non-Conformities Identified during this Audit

Timeline for compliance: 1. All non-conformances observed during an audit shall be classified as ‘major’ since all requirements for

Supply Chain certification have to be met before granting certification. 2. For Main Assessments, all non-conformances shall be addressed satisfactorily by the operation before

certification may be granted by the certification body. If non-conformances are not addressed within three (3) months of the audit, a full re-audit shall be required. The certification body shall assess the effectiveness of the corrective and/or preventive actions taken before closing out the non-conformances.

3. For Annual Surveillance Assessments, non-conformances raised after the certification are serious (i.e. must be considered as a major) and the integrity of the RSPO Supply Chain Certification is at risk. A maximum of one month is to be given to the certified client to satisfactorily address the non-conformance. The certification body shall assess the effectiveness of the corrective and/or or preventive actions taken. Should the nonconformance not be addressed within the one month maximum timeframe, a suspension or withdrawal of the certificate and a full re-audit may be necessary.

4. If no non-conformances are observed at an audit or when the corrective action plan has satisfactorily addressed raised non-conformance(s), the client shall be recommended for (re-) certification.

Non-were raised during this audit.

5.8 Final Certification decision by Control Union for the RSPO SCCS Audit of the POM

Recommendations made: Yes

Summary of non-compliances:

None Found

Certification status of client: The POM included in the scope of this audit demonstrated full compliance with the RSPO SCCS. With effect from the certification date given in the RSPOPC certificate, this POM mentioned in the scope of this report is considered to be certified in accordance with the RSPO SCCS.





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PART 6: CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

6.1 Date of next ASA

The provisional date for the next ASA is: June 2014

6.2 Date for Closure of Non-Conformities

See sections above for details of NC’s, if any

All major NCs to be closed by: 17/07/2013

All minor NCs to be closed by: Before next surveillance audit

6.3 Signing by the Client

I the undersigned, being the most senior relevant management representative of the operation seeking or holding certification, agree with the contents and audit findings as presented in this document . I also confirm:

Acceptance of liability in execution of the instructions given.

That this company was made aware that the findings of the audit team are tentative; pending review and decision making by the duly designated representatives of Control Union Certifications.

That during the closing meeting all agenda items was covered by the Lead Auditor.

Acknowledged by:

Name: Dr. Gan Lian Tiong

Position: Head of Sustainability

Date: 17 May 2013 Signature

6.4 Signing by the Lead Auditor

I the undersigned, being the Lead Auditor, confirm that this report is an accurate record of the findings and of the closing meeting. I further confirm that the summary of the findings as presented in this report are a true representation of the actual findings of the audit team.

Acknowledged by:

Name: Viknesvaran Paramasivan

Position: Lead Auditor

Date: 17 May 2013 Signature

6.5 Signing by the Certifier

I the undersigned, being the Certifier, confirm that the information and conclusions included in this report have been prepared in good faith and that the certification decision has been based upon this information.

Acknowledged by:

Name: Hari Naveen Christopher

Position: Certifier

Date: 05 September 2013 Signature





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PART 7: APPENDICIES

Appendix 1: Location Map for this Certification Unit

From 1.9, the location map(s)





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Appendix 2: List of Abbreviations AMDAL Analisis Mengenai Dampak Lingkungan

BOD Biological Oxygen Demand

BRC British Retail Consortium

CHRA Chemical Health Risk Assessment

CoC Chain of Custody

COD Chemical Oxygen Demand

CPO Crude Palm Oil

CSR Corporate Social Responsibility

CU Control Union

CUC Control Union Certifications

DOE Department of Environment

EFB Empty Fruit Bunch

EIA Environment Impact Assessment

ERT Endangered Rare or Threatened species

EU European Union

FFB Fresh Fruit Bunch

FSC Forest Stewardship Council

FSC COC Forest Stewardship Council Chain of Custody

FSC FM Forest Stewardship Council Forest Management

GGL Green Gold Label

GMP Good Manufacturing Practice

GOTS Global Organic Textile Standard

GTP Good Trading Practice

GPS Global Positioning System

HACCP Hazard Analysis and Critical Control Point

HCV High Conservation Value

HCVF High Conservation Value Forest

HGU Hak Guna Usaha

IPM Integrated Pest Management

JAS Japanese Agricultural Standard

MSDS Material Safety Data Sheet

NC Non Conformity

OE Organic Exchange

OER Oil Extraction Rate. (CPO as a % of the mass of FFB).

OSH Occupational Safety and Health

OSHAS Occupational Safety and Health Assessment Scheme

P&C Principle and Criteria

PEFC Programme for the Endorsement of Forest Certification

PET Polyethylene Terephthalate

PK Palm Kernel

POM Palm Oil Mill

POME Palm Oil Mill Effluent

PPE Personal Protective Equipment

RKL Rencana Pengelolaan Lingkungan Hidup

RPL Rencana Pemantauan Lingkungan Hidup

RSPO Roundtable on Sustainable Palm Oil

RSPO NI Roundtable on Sustainable Palm Oil National Interpretation

RTE Rare, Threatened, and Endangered

SA8000 Social Accountability 8000

SEIA Social Environmental Impact Assessment.

SIA Social Impact Assessment

SOCSO Social Security Organisation

SOP Standard Operating Procedure

UKL/UPL Upaya Pengelolaan lingkungan (UKL) / Upaya Pemantauan Lingkungan (UPL)

USDA/NOP United States Department of Agriculture – National Organic Program

MT Metric Tonnes

WHO World Health Organization