rspo certification assessment public summary

RSPO Public Summary Report - PT Salim Ivomas Pratama- Kayangan and Kencana Miil and Plantation 1 of 27

RSPO CERTIFICATION ASSESSMENT PUBLIC SUMMARY REPORT

PT. TUVNORD Indonesia System Certification Management

Has assessed

PT. Salim Ivo Mas Pratama

Kayangan and Kencana Palm Oil Mill and Plantation

for Compliance to RSPO Principles and Criteria

for Sustainable Palm Oil Production

Date of assessment: December 20-23, 2011

Head office System Certification Management Perkantoran Hijau Arkadia Tower F, 7

th Fl Suite 706

Jl. Let. Jend. TB Simatupang Kav. 88 Jakarta 12520 – Indonesia Tel : +6221 7883 Fax : +6221 7883 7336

Laboratory Division Jl. Jababeka XVII E Blok U No. 27B Kawasan Industri Jababeka I Cikarang Bekasi 17530 – Indonesia

Branch office Graha Pangeran 7-H1 Fl Jl. Jend. A Yani 286 Surabaya 60234 - Indonesia Tel : +6231 8292602 Fax : +6231 8292723

President Director: Mr. Robert Napitupulu

Email: [email protected] Website : www.tuev-nord.de


CONTENTS

1. Scope of the Certification Assessment. 1.1 National Interpretation used for the assessment 1.2 Assessment type. (mill, plantation and mill, plantation only etc. etc) 1.3 Location maps.

1.3.1 Map to show geographical location. 1.3.2 Map to show the supply base and neighbor entities

1.4 Description of mills and its supply base 1.4.1 Description of mills 1.4.2 Description of the supply base

1.5 Date of plantings and cycle 1.6 Other certifications held 1.7 Organizational information/contact person 1.8 Tonnages certified 2. Assessment Process 2.1 Assessment methodology (program, site visits) 2.2 Date of next surveillance visit 2.3 Lead assessor/assessment team 2.4 Certification body 2.5 Outline of how stakeholder consultation was managed 3. Assessment Findings 3.1 Summary of findings (template required) 3.2 Identified Non-Conformances and Noteworthy Positive Components 3.3 Issues raised by stakeholders 4. Certified organization’s acknowledgement of internal responsibility Attachement A: List of Abbreviations Attachement B: Draft of Certificate Attachement C: Module E-


1. SCOPE OF THE CERTIFICATION ASSESSMENT. 1.1 National Interpretation used The management of the Palm Oil Mill and associated suppliers of FFB were assessed for compliance against the Indonesian National Interpretation of RSPO Principles and Criteria (RSPO INA-NIWG) version May 2008 of the RSPO Principles and Criteria: 2007 1.2 Assessment type PT. Salim Ivomas Pratama (herein after as PT. SIMP) was founded in 1984 under the notarial letter No.65 dated July 19, 1978. The company has six mills, which are Kayangan, Sungai Dua, Balam, Sunagi Bangko, Lubuk Raja, and Napal Mill. It has eleven plantations, which are Kayangan, Kencana, Sungai Dua, Balam, Sungai Rumbia 1, Sungai Rumbia 2, Sungai Bangko, Cibaliung, Lubuk Raja, Bukit Raja, and Napal Estate. The scope of this certification is for Kayangan Mill (KYM), and two plantations, viz. Kayangan Estate (KYE) and Kencana Estate (KCE) as its supply bases. Mill and plantations are located at Bagan Sinembah Village, Rokan Hilir Regency, Riau Province, Sumatera, Indonesia.

1.3 Location map 1.3.1 Location map of Kayangan Mill, Kayangan Estate (KYE) and Kencana Estate (KCE)

Figure 1. Location map of Kayangan POM, Kayangan Estate (KYE) and Kencana Estate (KCE)

in Riau Province, Sumatera, Indonesia. PT Salim Ivomas Pratama


1.3.1. Map of Kencana Estate Block

1.3.2. Map of Kayangan Estate Block

Muara Bulian and

Tungkal Ulu


1.4 Description of mill and its supply base. 1.4.1 Description of mill

Name of Mill Location GPS1) Annual Output (ton)

2) Mill Capacity

(ton/hr) CPO PK

Kayangan Mill Bagan Sinembah Village, Rokan Hilir Regency, Riau Province

N : 01o39‟36.8”

E: 100o35‟26.2”

53,400 12,757 60

1) GPS coordinates in front of Kayangan Mill office. 2) CPO production based on actual production data per December, 2011.

1.4.2 Description of supply base

Name of Plantation

Location GPS Area (ha) FFB

Production (ton/year)

Estinamted Ton FFB/ha

Total Planted

Kayangan Estate (KYE)

Bagan Sinembah Village, Rokan Hilir Regency, Riau Province

N : 01o39‟43.5”

E: 100o36‟13.6”

6,620 6,216 161,133 25.92

Kencana Estate (KCE)

Bagan Sinembah Village, Rokan Hilir Regency, Riau Province

N : 01o38‟35.9”

E: 100o34‟55..3”

4,438 4,157 96,283 23.16

Total 11,058 10,373 264,337

1.5 Date and cycle of plantings

1.5.1 Date of planting and replanting Year of

Planting Year Percentage of Area Planted

Cycle of Planting

KYE KCE

1986 41.47 25.50 25-30

1987 25.45 23.12 25-30

1988 23.71 43.52 25-30

1989 7.32 6.78 25-30

1990 1.59 0 25-30

1993 0 1.08 25-30

1994 0.37 0 25-30

1997 0.08 0 25-30

Total 100 100

1.5.2 Time bound plan for other management units and justifications. As mentioned above, other than KYM, KYE and KCE, PT. SIMP has another five mills and and nine plantations. KYM, KYE, and KCE is planned to be certified in 2012, and another mills and plantations will be certified in 2013. Below is the time bond estimated for certification for another mills and plantations.

a. Name of Mills

Name of Mills Location

Annual Output Year (ton) Time bound for

certification CPO Kernel Oil

Sungai Dua Mill Rokan Hilir - Riau 40,406 9,378 2013

Balam Mill Rokan Hilir - Riau 5,604 11,209 2013

Sungai Bangko Mill Rokan Hilir - Riau 49,692 10,392 2013

Lubuk Raja Mill Pelalawan - Riau 78,225 15,825 2013

Napal Mill Indragiri Hulu - Riau 19,867 4,773 2013


b. Name of Plantations

Name of Plantation Supply to Location Area Summary (ha) Time bound

for certification Total Planted

Sungai Dua estate Sungai Dua Mill Rokan Hilir - Riau 5,740 5,458 2013

Balam Estate Balam Mill Rokan Hilir - Riau 6,084 5,823 2013

Sungai Rumbia-1 Estate Sungai Bangko Mill Rokan Hilir - Riau 4,964 4,722 2013

Sungai Rumbia-2 Estate Sungai Bangko Mill Rokan Hilir - Riau 5,429 5,104 2013

Sungai Bangko Estate Sungai Bangko Mill Rokan Hilir - Riau 2,983 2,799 2013

Cibaliung Estate Lubuk Raja Mill Rokan Hilir - Riau 5,046 4,816 2013

Lubuk Raja Estate Lubuk Raja Mill Pelalawan-Riau 7,137 6,824 2013

Bukit Raja Estate Lubuk Raja Mill Pelalawan-Riau 5,337 5,101 2013

Napal Estate Napal Mill Indragiri-Riau 5,500 5,111 2013

1.6 Other certifications or awards held by Salim Ivomas Pratama Certification Name Certificate Number Date of Certification Valid until

Proper Riau Province 2011 - June 3, 2011 July 2012.

Indonesia Environment Week „09 - May 31, 2009 -

Zero Accident (Days Work Without Lost Time Injury)

No. Kep:.02/Men/I/2005 January 3, 2005 -

1.7 Organisational Information Contact person. Principle Contact Person Ida Bagus Mayun

Business address: Sudirman Plaza Lt. 11 & 12 Jl Jendral Sudirman Kav. 76-78

Group name if applicable: Salim Group

Office telephone: 021-57958822

Mobile telephone: 0811759990

Fax: 021-57937504

e-mail: [email protected]

Web site: www.simp.co.id

1.8 Tonnages certified. Name of Mills Location Annual Output (ton) : Mill Capacity

(ton/hr) CPO PK

Kayangan POM Kec. Bagan Sinembah, Rokan Hilir, Riau

53,400 12,757 60

2. ASSESSMENT PROCESS 2.1 Assessment methodology. 2.1.1 General overview.

The assessment was carried out in conformity with TUV NORD Indonesia Certification Procedure, PRSPO-TNI-01, Rev.0, dated 01.06.2008.This procedure described the assessment process, which consist of three stages, such as audit preparation, perform of pre audit and certification audit, and issue of the certificate. Audit preparation included off site review of client document‟s such as RSPO manual, procedures, and working instructions.

Due to the audit at PT. SIMP, pre audit was conducted on September 20-23, 2011. Based on this review the auditors were able to perform the audit schedule for pre audit. Pre audit was required to assess the client‟s readiness toward the certification audit. This includes review of management system documentation and implementation on site.

Based on findings and recomendation from pre audit, auditor team will ask client to prepare correction and its evidences, and when it is confirmed the auditor will issue notification for certification audit to RSPO Executive Board to be published at RSPO website.

The certification audit was conducted on December 20-23, 2011. During pre audit and cartification audit the auditort team carried out field and office assessments of compliance for all the RSPO principles and criteria. Common systems were identified and specific evidence was recorded. Interviews with managers and workers were conducted both for plantation and mill..


2.1.2 Assessment Agenda Main assessment o certification audit was performed on December 20-23, 2011. The audit schedule available as below.

Date Location Principle and Criteria

Main activities

Day. 1 20.12.2011 All asessor team

Kayangan Office

08.00: Opening meeting.

Introduction by team leader. Introduction of team members and assessment agenda.

Presentation by Group Manager (Plantation and Mill).

Kayangan Office

- P 1.1, 1.2 , - P 2.1, 2.2, 2.3 - P 3

Full document review:

Centralised Documentation Audit for both mills and plantation.

Completion of the checklist. Review and documentation of evidence. All aspects of RSPO P&C‟s.

All the general documents and legal compliances verification.

Interview and discussion with operational managers and executives.legal department representative, training manager,

Verification and discussion on partial certification issues.

Kayangan POM - P 4.1, 4.4, 4.6. 4.7, 4.8

- P 5.3, 5.4, 5.6 - P 6.5, 6.6,

6.7, 6.9, 6.10

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

Workshops. Oil traps. Safe working environment. PPE. Diesel tanks. Environmental waste management. OSH Commitee. Training. Management structure. First aiders.

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

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

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

Energy Eficiency. Energy use and use of renewable energy.

Day. 2 21.12.2011

Team 1: AM,HAR @ KYE Team 2: WS,FF @KCE

- P 4.1, 4.2, 4.3, 4.4, 4.5, 4.6, 4.7, 4.8,

- P 5.1, 5.2, 5.3, 5.4, 5.5, 5.6

- P 6.2, 6.3, 6.4, 6.5, 6.6, 6.8, 6.9, 6.10, 6.11

Field Operations

Field inspections.

- Herbicide application programmes.

- Harvesting sites and efficiency. Fertilising operations. SOP‟s.

- Soil maps. Soil erosion. Land preparation. Ground cover. IPM. First aiders and boxes. Ground cover. Field observations of all operations.

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

Road maintenance. Run off.

POME and EFB application – site verification and records

HCV’s. HCV Identification. Management plans. EnvironmentalImpact Assessments. Implementation.

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

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

Water management. Water courses. Water monitoring

Social Impact Assessments.

New planting sites. Zero burn

Day. 3 22.12.2011 Assessor Team

Kayangan Office

- P 1.1, 1.2 , - P 2.1, 2.2, 2.3 - P 6.1, 6.2,

6.3, 6.4, 6.5, 6.6, 6.8, 6.9, 6.10, 6.11

Stakeholder Meeting

- Discussion with stakeholder to have feedback from them and discuss the result with management representative at closing meeting. Isues to be arised.

- Contributions made by company. Employment opportunities. Social Impact .Complaints and grievance. Land conflict .

Day. 4 23.12.2011 Assessor Team

Kayangan Office

08.00 : Auditor review Audit team discussion and finalise the finding. Preparation of draft report for closing meeting. 14.00 : Closing Meeting Chaired by the assessment team leader.

- Presentation of findings by the assessment team.

- Questions and answers.

- Final summary by team leader.


2.2.Date of next surveillance visit : To be determined 2.3 Lead Auditor and Assessment Team 2.3.1 Lead Auditor. : Anita Masduki

REQUIREMENT QUALIFICATION Compliance

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

- Chemical Engineer, Bandung Institute of Technology-Indonesia, passed 1987 - Diploma of Biological Treatment Management, Hiroshima University-Japan,

199-1992 - Diploma of Environmental Management, Institute of Environmental Management

and Assessment, London- United Kingdom, 1999 - Magister of Social Education, Ibnu Khaldun University,Bogor-Indonesia, 2007-

2009 - Doctoral Program of Social Education, Ibnu Khaldun University, Bogor-Indonesia,

2010-now

Yes

At least 5 years experience in area of work relevant with the audit (e.g., oil palm management; agriculture, ecology; social science);

Environmental/ ecological , safety and health assessment.

1992-1995:; Assessment the environmental impact for several industries of pulp and paper , wood product , pharmacy, at Java, Sumatera, and Kalimantan. More than 20 industries assessed. 1996: Cleaner Production Division for GTZ-Germany and Environmental Impact Control Agency -Indonesia) and SwissContact; responsible for research and develop program to integrate cleaner production in the strategic planning of industrial development program, including identifying candidates for implementing cleaner production program in Indonesia. The projec t include of information dissemination, assist on pilot projects, develop guidance manual for cleaner production integration, develop cleaner production training workshops, deliver training fot trainer, etc. More than 10 projects assisted. This project based on social services provided by GTZ-Germany and Environmental Impact Control Agency of Indonesia as an Awareness for Indonesian Cleaner Production Program. 1997- 1998: Global Climate Division of State Ministry of Environment, Jakarta and World Bank – Washington; responsible for preparing Investment Project Proposal for Ozone Depleting Substances Phaseout in Indonesia to be granted by Montreal Protocol Multilateral Fund through World Bank. This project focused on research in identifying industries as candidates for investment project. The project covered dissemination of information, assist on pilot projects, develop guidance manual for cleaner production integration, develop investment project proposal, delivered training, workshops for trainer, public training, etc. More than 30 projects developed. 1998-2011 Audit and consultancy experiences for more than 80 companies for ISO 9001, ISO 14001, OHSAS 18001, SA 8000, since 1996 up to 2011 in wide range of audit scope, such as plantations, oil and gas, pulp and paper, electronic manufacturing, school and university, contractors, etc

Yes

Trained in practical application of the RSPO criteria, and RSPO Certification System;

RSPO Lead Auditor Training by Wild Asia, April 11-15, 2011, Kuala Lumpur, Malaysia

Yes

Completed ISO 9001/ 14001/18001 Lead Auditor course and audit experiences.

- ISO9001:2000 Advanced Lead AuditorTraining Course, by SGS International Certification Services, 2002, Jakarta-Indonesia

- Certifiied Auditor Training of Environmental Management System (ISO 14001:1996) EARA -RIET - REDECON Jakarta

- Ocupational Safety and Health Audit Scheme (OSHAS) 18001, SGS-Jakarta 2002

Yes

A supervised period of training in practical assessment against the RSPO criteria or similar sustainability standards, with a minimum of 15 days assessment experience.

RSPO to date (Jan-Des 2011) Having experiences in assessment RSPO to date (Jan-Des 2011)

1. RSPO PNC Auditor for Main Audit of Mill and Estates London Sumatera Musi

Banyuasin, Palembang-Indonesia, Feb. 21-25, 2011 (5 days)

2. RSPO PNC Auditor for Pre Audit-1 of Salim Ivomas Perkasa Mill and Estate,

Riau-Indonesia, April 25-28, 2011 (4 days)

3. RSPO Supply Chain Lead Auditor for Main Audit of Wilmar Group, 2 mills and

2 refineries, Sumatera and Kalimantan-Indonesia, May 23-25,June 13-17, 2011

(7 days)

4. RSPO PNC Auditor for Main Audit of Mill and Estates London Sumatera, Site

North Sumatera-Indonesia, June 20-28, 2011 (9 days)

5. RSPO PNC Auditor for Tapian Nadenggan-SMART Group, July 4-8, 2011 (5

days)

6. RSPO PNC Lead Auditor for Pre Audit of Inti Indosawit Subur Mill and Estates,

Site Kayangan Estate & Kencana Estate, Jambi -Indonesia, Juli 18-20, 2011 (3

days)

7. RSPO PNC Lead Audit for Main Audit of Inti Indosawit Plasma Estates, Site

Kayangan Estate and Kencana Estate-Indonesia, Sep 12-14, 2011 (3 days)

Yes


REQUIREMENT QUALIFICATION Compliance

8. RSPO PNC Lead Auditor for Pre Audit -2 of Salim Ivomas Perkasa Mill and

Estates, Riau-Indonesia, September 26-30, 2011 (5 days)

9. RSPO PNC Lead Auditor for Main Audit of Inti Indosawit Subur Mill and

Estates, Site Kayangan Estate & Kencana Estate, Jambi -Indonesia, October

11-14, 2011 (4 days)

10. RSPO Supply Chain Lead Auditor for Main Audit of Dr. Oetker Foods Industry,

Oerlinghosen-Germany, November 7-11, 2011 (5 days)

11. RSPO PNC Lead Auditor for Pre Audit of Austindo Nusantara Jaya Agri Mill

and Estates, Site Binanga, North Sumatera -Indonesia, November 28-

December 2, 2011 (5 days)

12. RSPO PNC Lead Auditor for Main Audit of Salim Ivomas Perkasa Mill and

Estates, Riau-Indonesia, December 19-23, 2011 (5 days)

2.3.2 Assessment Team.

RSPO REQUIREMENT ASSESSOR QUALIFICATIONS Compliance

Fluent in main local languages and English.

Haryadi (HAR) Wieke Savitri (WS) Faroby Faletehan (FF)

Local language is Bahasa Indonesia, and all assessment team are Indonesian

Yes

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

Haryadi (HAR) Faroby Faletehan (FF)

More than 10 years working experience in palm oil plantation

Yes

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

Haryadi (HAR) Faroby Faletehan (FF)

More than 10 years working experience in oil palm plantation which includes GAP, IPM, pesticide and fertilizer use

Yes

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

Anita Masduki

More than 5 years of auditing experience in OHSAS for plantations, contractors, power plant, etc

Yes

Haryadi (HAR)

Auditing experience in FSC, GMP RSPO and organic agriculture

Wieke Savitri (WS)

Completed training as Lead Auditor / Internal Auditor Sustainable Palm Oil by Indonesia Palm Oil Board and KAN (National Accreditation Committee)

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

Anita Masduki(AM) Having experience in SA 8000 assessment in 2 (two) companies in Indonesia, in 2009

Yes

Faroby Faletehan (FF) Having experience in CSR project as assessor for oil palm company over the past 3 years.

Yes

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

Anita Masduki(AM) More than 15 years for preparing the environmental impact assessment and ISO 14001. Preparing ISO 14001 for plantations, contractors, power plant, etc

Yes

Haryadi (HAR) Doctorate in Plantation Ecology with considerable experience in several areas of oil palm plantation activities, such as expert auditor in RSPO Implementation, ISO 14000, feasibility studies, and has carried out research in Plantation Best Management Practices. Completed training in EMS course for ISO 14001:2004 and has experience in oil palm plantation waste management, disposal of EFB and fertilizer packaging and environmental impact on employees‟ housing complexes. Member of the team involved in RSPO certification assessment of PT. London Sumatra Indonesia, Tbk in 2008.

Yes

Economic issues Faroby Faletehan (FF) Audits ISO 14001: oil palm and plantation company 2004 version and was involved as auditor training in oil palm and plantation company against the RSPO criteria

Yes

2.4 Certification Body PT. TÜV NORD Indonesia is a subsidiary of the German TÜV NORD Group. The company

is a market leader in Indonesia for management system certification, product and equipment inspection and testing services. Through more than 900 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, through its HQ in Germany, is a member of International Accreditation Forum (IAF) and accredited by DAR–German and locally 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 Issue 5.

2.5 Stakeholder Consultation 2.5.1 Summary of how the stakeholder consultation was organised.

The company has identified all relevant stakeholders and they were invited in the stakeholders meeting which was scheduled regularly once in a year, according to procedure SIMP-PROS-04, Komunikasi, partisipasi, dan Konsultasi (Communication, Participation, and Consultation), Revision. 02, dated November 01, 2011. Stakeholders iinternal are those directly linked with the operation of the company such as employees and contractors. Stakeholders included external and internal stakeholders. External stakeholders organizations such as Government, NGOs and Civil Societies, communities. Internal stakeholders included its employees and employee union.

Last meeting between company with stakeholders was held on November 24, 2011 at Balai Jaya Village Office and auditor team has reviewed the minute of meeting. All stakeholders were sent a letter which included the agenda of the meeting. The telephone calls were made to to confirm the receive of the letter. They were invited to the meeting in order to give comments on several issues related to them, such as:

Information about RSPO to the public and stakeholders

Company approach to community development.

Environmental protection.

Biodiversity conservation.

Opportunities for employment.

Provision of housing, sanitation, amenities and educational support.

Participation in decision making.

If there any complaints and grievaance, land conflict

Any other issue, both positive and negative that relevance to the assessment.

Stakeholder consultation took place in the form of meetings and interviews. In all the interviews and meetings the purpose of the audit above was clarified before discussions proceeded in accordance with relevant RSPO principles, criteria and indicators. The company representatives only introduced the team and were requested to leave during meeting with stakeholders.

There is an employee union at PT Salim Ivomas Pratama, called as Serikat Pekerja. The committee is elected through open elections and every year elections are held to select representatives. During the stakeholder consultation the committee representatives were present and they were also interviewed in the audit.

Based on list of stakeholder and the stakeholder‟s minute of meeting, auditor team asked PT SIMP to organize the stakeholder consultation meeting, which was scheduled on October 13,2011, at Kayangan Office.

2.5.2 List of stakeholders contacted

Table 2.5.2 List of Stakeholder of Kayangan and Kencana Plantation

Statutory Bodies Contact Name Phone Number Address

A. PROVINSI RIAU

Gubernur H.M. Rusli Zainal, SE 0761-33684 Jl. Jend. Sudirman

Sekda Drs. H. Wan Syamsir Yus 0761-33749 / 40302 Jl. Jend. Sudirman No. 460

Kepala DPRD Drs. H.M Djohar Firdaus, MSi 0761-857161 Jl. Jend. Sudirman

Kadis Perkebunan M. Yafiz 0761-23815 / 47153 Jl. Cut Nyak Dien No. 6

Kadis Kehutanan - 0761-21630 / 31631 Jl. Jend. Sudirman No.468

Kepala BLH Ir. Fadrizal Labay, MP 0761-45948 / 34148 Jl. Thamrin No. 93

Kadis Depnakertrans H.R. Lukman Mat, S.Sos 0761-21733 Jl. Pepaya No. 57 – 59

Kejaksaan Tinggi Teuku Sofyan Oebit, SH, MH

Danrem Kolonel Inf Zaedun, S.Sos Jl. Mayor Ali Rasyid No. 1

Kapolda Brigjen Pol Suedi Husein Jl. Jend. Sudirman


Statutory Bodies Contact Name Phone Number Address

B. KABUPATEN ROKAN HILIR

Bupati H. Annas Maamun Telp. (0767) 24287, 21011. Fax. (0767) 21801

Jl. Merdeka No. 58, Bagan Siapi-api - Riau.

Kepala DPRD Nasruddin 0767-24567

Sekda Telp. (0767) 24287, 21011. Fax. (0767) 21801

Jl. Merdeka No. 58, Bagan Siapi-api - Riau.

Kadis Perkebunan Bakhtiar, ST

Kadis Bapedal Drs. H. Surya Arfan, MSi 0767-24928 Jalan Lintas Bagansiapiapi Batu 6 Bagan Punak

Kadis Pendapatan Daerah

Drs. H. Wan Achmad Syaiful, MSi

0767-22061 Jalan Lintas Bagansiapiapi Batu 6 Bagan Punak

Dandim Letkol Inf Sonny Aprianto, SE 0813-19051888 Jl. Sultan Syarif Qasim

Kapolres AKBP Bambang Sudarmaji Ujung Tanjung

C . Local Communities (komunitas lokasl/tokoh masyarakat dll)

Local Communities Contact Name Phone Number Addresss

A. KECAMATAN BAGAN SINEMBAH

Camat Suwandi S.Sos 081268002222 jln. Lintas Riau Km. 7. Bagan Batu

Sekertaris camat Hadiyono S.H 081371375336 Bagan Batu

Kapolsek AKP A. Rudi Samosir 081245531974 Bagan Batu

Kapolpos Aipda H. Pasaribu 081378043888 Balai Jaya Km.38

Kapolpos W. Siregar 081371485630 Balam Sempurna Km.25

Dan Ramil Kapten Hulman Sitorus 085271063799 Bagan Batu

Babinsa Serma Suroyo 081365599180 Balai Jaya Km.39

RS. Indah Riady Armawan,SH 0765-552008 /08127694156

RSU. Indah Jln. Lintas Riau Sumut Km. 2 Bagan Batu

B. DESA BALAM SEMPURNA

Local Communities Contact Name Phone Number Addresss

Kepala Desa Junaidi 085278243200 Dusun Pematang Durian Rt.01/02

Sekertaris Desa M. Robby 085229491440 Dusun Pematang Durian Rt.06/02

Ketua LPM Endar Munthe 081264388200 Dusun Pematang Durian Rt.02/01

BPK Ahmad Rudi Siregar 081371963860 Dusun Pematang Durian Rt.06/02

Kadus Kayangan Zulkifli Dalimunthe 08127630574 Dusun Kayangan Rt.03/01

Tokoh Masyarakat Ilham Nasution 081365418655 Dusun Sumber Sari Rt.01/02

Tokoh Agama M.Yusri Nasution 082165817233 Dusun Sumber Sari Rt.06/02

Tokoh Pemuda Azuarwadi 081365059860 Dusun Pematang Durian Rt.01/02

Ormas Baharudin 081371308690 Dusun Pematang Durian Rt.01/02

Organisasi Pekerja : (Ketua SPSI)

Endamanson Gultom Dusun Beringin Rt.02/01

3. ASSESSMENT FINDINGS.

3.1 Lead auditor’s summary and recommendation for certification: A pre-audit was conducted in September 27-29, 2011 and SIMP has worked hard to address the non-conformities raised at that time. Certification audit was held on December 20-23, 2011. Miill, and both Kayangan and Kencana plantations were audited. This main audit has confirmed the findings of the pre-audit and compliances found against RSPO P&C. It is the recommendation of the lead assessor that a certificate of compliance be awarded to PT SIMP for Kayangan mill and its supply base from Kayangan and Kencana plantations 3.2 Summary of the findings by criteria and noteworthly positive components The assessment team conducted a thorough assessment of all the principles, criteria and indicators. Evidence was sought for conformity with the RSPO NI of both systems and their implementation. The findings column reflects the findings in accordance with each criteria and indicator and the comments column includes some of the evidence found.

3.2.1 Summary of the findings by criteria

PRINCIPLE AND CRITERION

COMPLIANCE

Criterion 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

SIMP has prepared a system on how to provide adequate information to other stakeholders on environmental, social and legal issues relevant to RSPO, through procedure SIMP-PROS 04, Prosedur Komunikasi, Partisipasi dan Konsultasi (Communication, Participation, and Consultation Procedure) Rev 2 dated on November 1, 2011. Responses to those requests within 10 days since the request were received. Auditor team assessed the implementation of this procedure and found that all information received from related parties and its responses

Yes



COMPLIANCE

was performed in “Log book Permintaan dan tanggapan atas permintaan informasi” (Request and Responses Log Book)

The book contain information of date, name, organisation, information requested, actiontaken to request , person in charge whomfollow up or, and other references i.e. letter. This log book and other references as records were maintained for at least two years as stated in “Formulir Daftar Induk Rekaman (FORM/PROS-32/01)"

Criterion 1.2 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

SIMP management has policy that there is no objection that documents can be publicly available such as legal, social and environmental documents and current and past FFB prices. The exception only for confidential commercial information and documents are not publicly available but has been verified by the auditor team.

Mechanisme of handling to the request of public documents is mentioned also in the same procedure as above in 1.1, " SIMP-PROS 04: Prosedur Komunikasi dan Konsultasi” Rev 2 dated on November 1, 2011.” Auditor team has verified that these documents were available for public, such as:

- AMDAL (Environmental and social impact assessment),

- Laporan Pemantauan RKL/RPL (Environmental Management And Monitoring Reports).

- Hak Guna Usaha/HGU (Land Use Title,

- Izin Lokasi (Site Permit)

- Izin Usaha Perkebunan (Plantation Operation Permit).

- Identification of HCV

- Underground water use permit,

- The Health and Safety Manual and Program.

- Compensation claims mechanism

Yes

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

SIMP has mechanism how to comply with all applicable laws and regulations through procedure SIMP - PROS – 02 Prosedur Identifikasi & Evaluasi Kepatuhan Penerapan Peraturan Perundang-undangan dan Persyaratan Lainnya (Procedure for Identification and Evaluation of Legal Compliance) and has a list of regulations and legal requirements relevant to the mill and plantations. The list of regulation and its compliance was noted in the format (FORM / PROS - 02/01) which contain most of the legal and regulation that company shall comply. It included the applicable Environmental Impact Assessment, HCV, Social Impact Assessment, Water Water and Air Polution Measurement, Safety, Labour Wage, Waste Management Report etc. The auditor team has assessed that company has complied all of applicable laws and regulations.

Yes

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

SIMP has developed procedure to assure the right to use land (Land Titles Use), through SOP No, CR-OPR-103-HGU. 11.11-1, Prosedur Perizinan dalam rangka mendapatkan HGU (Procedure How To Get Land Use Title). List of Land Use Title were recorded in file Perijinan PT. Salim Ivomas Pratama/ Land Use Title for Kencana Estate and Kayangan Estate was available and verified, the HGU number: 03/1990 issued on February 17, 1990 for the total area 11,058 ha, valid until December 31, 2023. There was mechanism to monitor and maintain the boundaries stones annually. Records of monitoring boundaries stones were available and maintained properly, equipped with photographs. The last monitoring was conducted on October 27, 2011.

SIMP has etablished mechanism for the resolution of conflicts and disputes through SOP CR-OPR -104-PHI. 11.11-1, Penyelesaian Sengketa dan Perselisihan Hubungan Industrial (Resolution of Conflict and Industrial Relation),) and OPR -103-KEK.11.11-1, Prosedur Penanganan Konflik Eksternal,CR-). This procedure mentioned how the company solve the problem if any conflict occured both internal or external conflict. This procedure also mentioned if the problem can not resolved by negotioation, the compay will take legal action involving related institution. So far there was no unprecedented conflicts / disputes with stakeholders, but only cases of theft of fruit by people around the garden and can be resolved by legal officer.

Auditor team confirmed there was no land conflict found at both estates. Surrounding of the estates is land owned by the farmers which have been nurtured and educated by PT SIMP.

Yes

Criterion 2.3 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.

As far as could be ascertained, there is no customary right of other users. Yes

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

• The company has a documented working plan written in Annual Budget, both for Kayangan Estate and Kencana

Estate mills and plantations. It covers a minimum period of 3 years which include production forecast, operating cost production cost. For mill budget includes FFB received and processed, OER extraction, CPO and PKO production details, crop yield projections; and income. Price of FFB was based on Governor Decree of Jambi, Peraturan Gubernur No. 36 tahun 2011 tentang Pedoman Penetapan Harga Pembelian FFB Kelapa Sawit Produksi Perkebunan/ Governor Decree No.36.2011 regarding Pricing Guidelines of Buying FFB for Palm Oil Plantation dated September 12, 2011

• Replanting programme for PT SIMP is available and projected for 6 years and reviewed on yearly basis. First

Yes



COMPLIANCE

replanting has been programmed in 2012. The seedling will be sourced from OPRS (Oil Palm Research Station) – Riau.

Criterion 4.1 Operating Procedures are appropriately documented and consistently implemented and monitored

SIMP has provided standard oprating procedures both for estates and mill, the list of the procedures were recorded in Daftar Isi SOP Agronomy (List of Agronomy‟s SOP) for estates operations and Daftar Isi SOP Engineering (List of Engineering‟s SOP) for mill operations. These SOPs concerning to the quality, environment, and safety aspects which incorporated in each activity listed. These SOPs were well socialized to respective persons both at mill and estates.

Monitoring of estates and mill operations recorded in Manager Report.

To ensure that all activities are running properly, RSPO Team Management conducted monitoring of mill and estates operations through an Internal Audit.

Yes

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

The soil analysis implemented once a year by an external lab and reported RKL – RPL

Leaf analysis carried out once a year used to determine the level of soil fertility, crop nutrient requirements and formulation of fertilizer recommendations yearly. The record of soil test from year 2008-2001 was available

Soil analysis results related to environmental monitoring and prevention of pollution caused by wastewater application implemented once a year by an external laboratory and has been in put in the report RKL - RPL, Leaf analysis carried out once a year used to determine the level of soil fertility, crop nutrient requirements and formulation of fertilizer recommendations yearly.Last soil analysis was performed on December 2009.

To increase land fertile and too decrease usage of achemical fertilizer, company used EFB and POME for land application in both Kayangan Estate and Kencana Estate.

Yes

Criterion 4.3 Practices to minimize and control erosion and degradation of soils

Kayangan Estate and Kencana Estate plantation has a relatively flat topography of the land (slope <8%, having land quality S1) so there is no marginal land.

PT SIMP has strong commitment to control and minimize soil degradation and provided SOP for soil and water conservation, AGR-701-KTA.06.11-1 Prosedur Konservasi Tanah & Air (Land and Water Concervation Procedure), including strategy for slope planting.

SIMP has SOP AGR-301-PJJ.06.11-1, Prosedur Pembuatan & Perawatan Jalan dan Jembatan (Road and Bridge Maintenance Procedure). Roads were very well maintained. There was a monthly road maintenance activities using grader. These activities were recorded in Program Pemeliharaan Jalan (Program for Road Maintenance), including road grading, road pit, sand and stone spreading along the road, etc. During May-October 2011, it was noted 2 times road maintanance in Kayangan and kencanan Estate.

There was no peat and fragile soil noted.

Yes

Criterion 4.4 Practices to maintain the quality and availability of surface and ground water

Kencana and Kayangan Estate: The SIMP has policy to remain and maintain the water sources, as the area was indicated as HCV 4.2, the restoration of the riparian zones, through zero fertilizer and pesticide application on the palms in the riparian zones. It has 50 m wide buffer zone along Sungai Kapau as the buffer zone which along this area the usage of herbicide, pesticide and other chemicals was prohibited.

The company used water for mill from water reservoir, while for plantation both from water reservoir and groud water. For mill activities, the water consumption was 1.2 m3/ton FFB processed in average. There was no need to have permit as the company paid the monthly water retribution to the local government.

The palm oil mill effluent (POME) applied for Land Application to Kayangan Estate was checked monthly and the record of POME during January-November 2011 was available. Measurements was made every month including pH, Biological Oxygen Demand (BOD), Chemical Oxygen Demand (COD), and oil and grease. All these parameters were still below the effluent standard for LA according the Decree of Ministry of Environment No. 28/ 2003 as the measured pH between 6.7~ 7.13 and BOD 2,100~4,700 mg/L (pH around 6~9 and BOD <5000mg/L.

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

PT SIMP has formulated an Integrated Pest Management (IPM) Program through SOP: AGR-203-PHP.06.11-1, Prosedur Pengendalian Hama & Penyakit (Control of Pest and Deseases Procedure).

Integrated Pest Management (IPM) focused to control pests and diseases. Several common pests have been identified - caterpillar (Thosea asigna and Setora nitens), termites, and rat. To control caterpillar, it used beneficial plants, such as Bunga Pukul Delapan (Turnera subulata), Air Mata Pengantin (Antigonon leptosus), Patik Emas (Euphorbia heterophylla), and Casia cobanensis to harbour predators to the pests. Rat control was conducted through Tyto alba was used as natural predator of rats. PT SIMP has used the beneficial plant since 2005. Before this time the usage of pesticide about 1000 L/year, and now was budgeted only 300 L/year.

The records such as IPM monitoring report, implementation report, spray employee training, employee research executive owl monitoring activities, were available and well documented in both Kayangan and Kencana estates Auditor found that the use of owls to control rats and use of beneficial plants alongside roads was effective. Usage of pesticides was decreased comparing before using beneficial plants and natural predators.

Yes



COMPLIANCE

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

SIMP has policy only use the approved and registered agrochemicals permitted according to the regulation of Ministry of Agricultural No. 7/2007 regarding the Requirement and Handling of Pesticides. Handling. According to this regulation, there is restriction of chemical usage such as paraquat. Up to November 2011, SIMP used herbicide such as round up, garlon, starane, kill up, and gramoxone. The budget for round up, garlon, starane, and kill up were around 5000, 600, 1200, and 800 litres in 2011 but the realization only around 4000, 500, 1100, and 50 litres respectively. For gramoxone, the budget was 2700 litres and the realization around 1500 litres. Comparing from the last three years, in over all the trend of chemical usage was decreased. Exception for gramoxone, the was an increased in usage in Kencana Estate and auditor found this as non conformity.

There was procedure on working with agrochemical, Guide to the Safe Use of Pesticides, including type of approved and registered agrochemicals, correct dosage, rinsing the equipment, handling the agrochemical waste such as chemical container, and PPE shall be used during working with the chemicals. The application of agrochemical must be by trained personnel and record of the traning were available.

No work with pesticides for pregnant or breast feeding woman. Annual medical checkups record were available for employees, especially whose work with chemical.

It was found in Kencana Estate that usage of paraquat increased from 2009 - 2010, however that budget for paraquat in 2012 increased than in 2011. This was noted as nonconformity (NC) and the company has made correction to this NC by decreasing of paraquate usage through memorandum fro Vice President. The auditor has checked the availability of this memorandum and verified to the field that there was no more paraquat in budget and usage.

NC# SIP.01/12/12

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

There was sustainable palm oil policy or Kebijakan Minyak Sawit Berkelanjutan PT Salim Ivomas Pratama signed by their Board of Director on May 1, 2009 which intergrated in Kebijakan Lingkungan, Sosial, Kesehatan dan Keselamatan Kerja (Environmental, Social, and Occupational Healt and Safety). This policy was implemented in mill and estates and its socialization was recorded ini form Pro - 01/03. Auditor has checked and verified that the policy was undestood by worker in the mill and estates.

Structure of Health Committee was available, while the secretary of the team must be have Sertifikat Ahli K3 Umum (Certificate for General OHS Expert). There was regular OHS Committee meeting which conducted monthly and gives explanation to all supervidor at mill and plantations. Before working, supervisor of mills and plantations have morning briefing to all workers what their job todate including safety briefing.before work..

SIMP as identified, controled, and monitored the occupational hazard and risk and recorded ini form FORM/PROS - 01/02)Hasil Isian Formulir Identifikasi Bahaya, Penilaian Risiko Dan Penetapan Pengendalian

Workers exposed to highrisk were identified and records show that regular health examination takes place. All workers are insured by PT. Jaminan Sosial Tenaga Kerja (Jamsostek), the national insurance body; records of member list and payment were available.

Personnel protection equipment was given to all high risk employees. The foreman / supervisor in the field have received training in First Aid Accident (P3K) given by Doctor Clinic at the date of 18 November 2011

PT SIMP provided the health care facilities for sprayer 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 there was a doctor visited them every week.

There are regular meetings between management and workers on health and safety issue. All the operations have been risk assessed for obtaining SMK3 certification. With the assessment were developed procedures for accidents and emergencies. All the workers can be assumed have a Permit to work 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.

There was general Medical Check Up (MCU) for highrisk worker both in mill and estates. The auditor has chekced the record of Kayangan estate and mil. For Kayangan estate, there was record for chemical sprayer, and worker in chemical storage. For Kayangan mill, the MCU was conducted for worker who work at bolier station, water and waste water treatment plant , chemical warehouse, toxic and hazardous warehouse, workshop and recorded in “Rekapitulasi Hasil Pemeriksaan Berkala Karyawan”, dated 30 November 2009 (36 person) and 26 September 2010 (25 person). For Kencana Estate mill and plantation, the MCU was conducted on 23 September 2010 for 158 and person.

Record of training, socialization of OHS, morning meeting, certificate of training, use of safety equipment such as fire extinguisher was available. There were several OHS training since March until June 2001 recorded, such as training on OHS and RSPO, First aid, HIRA, OHS program. Training of RSPO and OSH was given by the sustainability department; training or agronomy (includes spraying). by the estate manager.

Nonconformity: Spraying women was not well trained about pesticides risk to their health so that they used their

shawl to wipe the sweat. This nonconformity was corrected by Sustainability Department together with Estate Manager by conducting the RSPO socialization and training to all workers regarding the environmental and safety risk oh the chemicals, such as fertilizer and hazardous chemicals, and how to control them as well.

NC# SIP.02/12/12



COMPLIANCE

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

Training conducted by the training center Kayangan Estate Pratama PT Salim Ivomas for employee / training new staff and a few others on request from the operational side. In addition employees are also given the opportunity to attend external training organized by outsiders as well as corporate HR in Indofood jakarta.

Evidence of implementation of employee training is available in the form of certificate of training, attendance list implementation of training in-house training and report on implementation of in house training.

Management of SIMP provided training program for its staff,worker, smallholders in accordance with workers‟ positions and competences . Training programmes are formulated on yearly basis. There are several training programmes for workers, spraying practices, Integrated Pest Management, Occupational Health and Safety, toxic and hazardous substances, toxic and hazardous waste management, and fire prevention and control.

Evidence of implementation of employee training is available in the form of certificate of training, attendance list implementation of training in-house training and report on implementation of in house training.

There was also First Aid training for Occupational Health and Safety Team, coordinated by doctor and paramedic from each clinic of Kayangan Estate and Kencana Estate plantation. Training for smallholders and selected supplier and contractor were available.

Trained contractor is evidenced by their company profile - each contractor who worked for the company, also in the Work Letter Agreement (DSS) is also requested that the contractor receipts for trained / certified in accordance with the type of work performed by the contractor and the liability for employees who complete APD works.

Interviews with staffs and workers of mill and plantation showed that they aware the risk of their job, to environment and safety and health. It was confirmed that the training was effective and the competence of worker was enough to support their job.While interview with external FFB‟s smallholder, they were aware of using personnel protection equipment (EPE), and FFB price regulation.

All training records during 2010 and 2011, including attendance lists, photographs, and training material were available and maintained properly. There was evaluation of the effectiveness of the training for all those training participants

Yes

Criterion 5.1 Env.Aspects of plantation and mill management, including replan-ting, that have environmental impacts are iden-tified, and plans to mitigate the nega-tive impacts and promote the positive ones are made, implemented and monitored, to demonstrate continuous improvement.

SIMP has performed first Environmental Impact Assessment (AMDAL/RKL-RPL). AMDAL (SEL) No. RC.220/1052/B/VI/93, Tanggal 22 Juni 1993 and its revision of RKL - RPL dated October 25, 2011. The implementation of RKL - RPL document is regularly reported in Laporan Pengelolaan dan Pemantauan Lingkungan and submitted to BAPEDALDA every semester (6 months). Last report of semester II December 2010 and semester I June 2011 were checked and verified during audit.

Yes

Criterion 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.

SIMP has determined the location - a specific location within the orchard area occupied by perusahaa (including

flora and fauna that exist in it) as an area of high conservation value (KBKT / HCV). The HCV study for the PT has

been carried out by external consultants from Faculty of Forestry, Agriculture Institute of Bogor. The study has

identified HCV 1 for protected species; HCV 4.1 for environment service and HCV 6. MOU with the village

community has been established to manage the HCV 6 in collaboration with the management. The collaboration

MOU was signed by the head of the community.

At the appropriate places within the estate signs have been put up to forbid hunting and disposal of garbage.

Several initiatives regarding the protected species have been developed. Monitoring of wildlife is ongoing and

Management plans have been developed on the basis of the outcome of monitoring activities. Maintenance of

riparian zone as part of biodiversity is based on Undang-undang No. 41 tahun 1999 regarding forestry and

Undang-Undang No.5 tahun 1990 regarding biodiversity conservation. Management plan for the HCV and

conservation area is available. Plan includes details of the area, location, objective and target, management

programme, method, person in charge, and time frame. Preserving of the species is carried out with planting of

jungle trees. There was an HCV coordinator and one HCV officer at the operating unit to carry out to manage and

monitoring the plans. Monitoring was twice a year.

Yes

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

SIMP has managed the hazardous and toxic waste in accordance with relevant regulation, such as Peraturan Pemerintah (Government Regulation), No. 18 jo 85 year 1999

SIMP has temporary hazardous and toxic waste storage permit up to 180 days and the type and quantity of waste was reported every three months to the relevant agencies.

The procedures of waste management was available and impemented properly, such as procedure Hazardous and Toxic Waste Management (SIMP - PROS - 12), Hazardous and Toxic Waste Waste Expenditure (SIMP - PROS - 13), Hazardous and Toxic Waste Spill Handling (SIMP - PROS - 14), Medical Waste Management SOP (SIMP - PROS - 15), and Air, Noise, and Smelt Measurement (SIMP - PROS - 29) and Liquid Waste Measurement (SIMP - PROS - 30)

There was logbook for all type of wastes, the pollution sources, amount, where to be disposed , name of waste collector and its truck identication, copy of permit/licence of waste colector were available both at Kayangan Estate and Kencana Estate mills and plantations. SIMP has identified type and pollutions sources and reported in

Yes.



COMPLIANCE

the RKL/RPL report and submitted regularly to Environmental Agency of Rokan Hilir District every six motnts.

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

Fibre and shells used as energy source in the mill (bio fuel).

Records of fibre and shells used as renewable energy used were recorded as “Pemakaian TotalEnergy” and monitored in the manager‟s Monthly Report on the mill. During 2008 to 2011 PT SIMP used around 43,000 ~ 35,000 ton fibre and 14,000 ~ 11,000 ton shell as bio fuel.

Electrical energy comes from turbine (bio fuel) and generator (diesel). From the data, it was noted that there was an increase in the use of turbines (bio fuel) of 80% at the beginning of the year 2011 to 89% at the end of the year. Instead there is a decrease of 20% generator use early in the year to 11% at the end of the year. The use of diesel fuel for generators at the at the beginning of the year 19 640 liters / month and at the end of the year to 11 440 liters / month, decreased around 41.75%

Yes

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.

There was zero burning policy available under RSPO policy point 5 dated on May 1, 2009. Zero burning policy is also stated in Procedure CR-AGR-103-NEW.06.11-1 Land Clearing dan Persiapan Lahan Pra Tanam, Rev.0, dated on June 21, 2011. SIMP has not conducted the replanting program yet, however, the auditor team found that zero burning policy has been well socialized to all workers and to other stakeholdesr through sign board, muster meeting and stakeholder meeting.

SIMP has established procedure of emegency responses to in case of fire in SOP Penanganan Kebakaran CR-AGR-705-KBR.06.11-1 and SOP Kesiapsiagaan dan Tanggap Darurat (SIMP - PROS – 24). There was firefighting drill to person in charge in Emergency Team, the last training was conducted on April 13, 2010 which also involved physician from central clinic.Fire extinguishers and fire fighting equipments present in various locations on site and checked periodically.

Yes

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

There was identification of the sources of emission such as generator and boiler through SOP Identifikasi and Pengukuran Kualitas Emisi Udara, Udara Ambien, Kebisingan dan Kebauan/ SOP Identification and Measurement of Emission, Noise, and (SIMP - PROS - 29) and the measurement was conducted every 6 months.

Measurement of wastewater was performed using SOP Identifikasi dan Pengukuran Kualitas Limbah Cair / Identification and (SIMP-PROS- 30) dan SOP Aplikasi Efluen/ Land Application (CR-AGR-208-EFL.06.11.11-1).

All records of the measurement was available and reported in Laporan Pengelolaan dan Pemantauan Lingkungan (see. Criterion 5.1 above). Monitoring of BOD level done monthly basis, the test conduct in Labour Department‟s Laboratory (Laboratorium Pengujian DISKIMPRASWIL) Riau province. There are 8 effluent ponds (including cooling pond, acidification pond, primary and secondary anaerobic pond). All BOD level were below 5000mg/L for used as land application. Monitoring is carried out monthly to ensure BOD within the spec.

At mill, air pollution was from boiler and generator. Air pollution measurement was conducted every six months by Labour Department‟s Laboratory (Laboratorium Pengujian DISKIMPRASWIL) Riau province and recorded as “Laporan Pemantauan Kualitas Udara”. The measured parameter according to regulationwere: and the result was still below the limit level. Last measurement of air emissions was on November 2010 and June 2011 and t. This record was available also in the AMDAL/DPPL environmental report, and submitted every six months to Environmental Agency of Riau District.

Yes

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.

Based on previous Environmental Impact Assessment (AMDAL or EIA) Environmental Impact Assessment (AMDAL/RKL-RPL). AMDAL (SEL) No. RC.220/1052/B/VI/93, Tanggal 22 Juni 1993 and its revision of RKL - RPL dated October 25, 2011 by the Regents Rokan Hilir, No. SK: 000/2011/367., there was not many information about social impact assessment for estates and mill. The information only covered the classifying the activities into negative and positive impact. The negative impact from activities was consisted of: 1) provision of non forest areas, 2) land clearing, and 3) procurement of infrastructure; and the positives impact from activities of: 1) Procurement of infrastructure, 2) Cover crop planting, 3) Planting of main crops, 4) maintenance of Immature and Mature crops, and 5) Labour vacancy. The EIA recommended through technology, organisation and social economic approach, the social impact had been analysed for direct or indirect impact activities because of the communities are involved in oil palm and rubber cultivation that were living around the TMP‟s areas.

A social impact assessment will be done for the estates to identify the company‟s influence on the local communities. The assessment will be done by Riau University in July 2009. In the meantime, TMP collects social economic information by questionnaire surveys, however the data collected so far are inadequate to analyse the social impact caused over the last 15 years.

The documents identified the potential, problems and needs of people in surrounding villages. Implementation of the stakeholder meeting is a regular agenda by PT. Salim Ivomas Primary with local community participation. Social impact assessment focused on identification the company‟s influence on the local communities. The data on social and economic collected through questionnaire surveys.

Yes



COMPLIANCE

The Company has made several consultation / communication with relevant stakeholders, the company's plans include a public consultation on identification of High Conservation Value Areas (KBKT / HCV) in the village hall jaya Rokan Hilir by Fak. Date of Forestry IPB 2010, Public Consultation on RSPO certification of the company's plans in the village of Balam Perfect November 24, 2011 which was attended by corporate stakeholders (Muspika, Muspida and the community about the company)

There were records of Corporate Social Responsibility (CSR) activities for year 2010-2011. The program covered such as training on best practices for palm oil to farmer and smallholder, contribution given to community, such as road repair, school contribution. Social impact of company was discussed during stakeholder meeting on October 13, 2011, and topic matters was discuss in detail in section 3.4 of this report.

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

PT. SIMP has a method for communication, interaction, and consultation between growers and / or factories, local commutenities and other groups. This method is stated in the Procedure of Communication, Participation and Consultation, SIMP-PROS 04 :Prosedur Komunikasi dan Konsultasi” Rev 2 dated on November 1, 2011.. Several stages in the communication and consultation is through: 1. Initiation of enterprise management 2. Initiation of employees 3. Initiation of the company's external stakeholders. The stakeholder meeting between the PT. SIMP with internal and external parties was conducted based on this procedure

There were records of several stakehoder consultation meetings which conducted partially, for example : socialization of HCV identification by Forestry Faculty, Bogor Agricultural University (IPB) in 2011. The more comprehensive stakeholder meeting regarding RSPO certification has been conducted on November 24, 2011 in Desa Balam Sempurna.

SIMP has a list of stakeholders, such as suppliers and contractors, local governments, business partners, NGOs, local communities and the press. The list of stakeholder was updated periodically.

Supervisors in each estates were assigned as liason officer to communicate with local stakeholders, while Government Relation Department in Head Office was in charge for higher level stakeholders.

Yes

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.

SIMP has documented system regarding mechanism for handling internal and external grievances and dispute resolution in documented procedures, Procedure “CR-OPR-104-PHI.11.11-1 Prosedur Penyelesaian Sengketa dan Perselisihan Hubungan Industrial” in accordance with applicable regulation UU No.2/2004 “Penyelesaian Perselisihan Hubungan Industrial for internal stakeholders while “Prosedur Penanganan Konflik Eksternal (CR-OPR -101-KEK.11.11-1) for external stakeholders.

For handling employment-related issues, such as layoffs, settlement discussions prior to, then increases to involve the local Labor Office, if it can not be resolved internally or if it goes to court.

External complaint include land dispute, environmental issue, access to public facility such as bridge, road and job vacancies or company contribution to stakeholder. If the problem can not be resolved by negotioation, the company will take legal action involving related institution.These procedures had been socialized to internal and external stakeholders during stakeholder meeting.

The company appointed Head of Section of each estate to be the officer to communicate with the shareholders. At management level SIMP has a team from Government Relationship Department (GRD) to have intense communication with the shareholders of the company.

SIMP has also established procedures for identification and calculation of fair compensation for land in Prosedur Pembebasan dan Ganti Rugi Lahan (CR-OPR -102-GRL.11.11-1).

Yes

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.

SIMP ws an estate that has a relatively long time in Bagan Batu, Riau. SIMP uses government land since the 1980s, so far there was no conflicts with the public on current land. Never any problems in the use / construction of roads, which eventually can be resolved by peaceful means, win-win solution.

In case there is any land conflict, SIMP has developed documented procedures for the identification and calculation of fair compensation for land in Prosedur Pembebasan dan Ganti Rugi Lahan (CR-OPR -102-GRL.11.11-1) . Auditor team checked that SIMP acquired the land from ex government forest, therefore no compensation for customary right.

Yes

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.

Pay rates including working time, overtime pay terms are included in working agreement (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 rates includes basic wages and allowances and available in Document Labour Control consists of employees status and pay rates.

SIMP has set the salary based on Governor of Riau No.10 tahun 2011 dated on 1 February 2011 and Workers Union Agreement of Estates and Mill “(Badan Kerja Sama Perkebunan dan Pabrik Sawit/ BKS-PPS Upah Minimum Sub Sektor Perkebunan Kelapa dan Kelapa Sawit serta tanaman Karet tahun 2011” which set the minimum salary was Rp 1,234,000, According to this agreement, SIMP set the minimum salary of Rp 1,133,500,- as basic wages and also rice allowance in “Memorandum No.067/HR-IR/III/2011 dated on March 9, 2011”. The

Yes



COMPLIANCE

rice allowance rate is updated periodically according to BKS PPS (Badan Kerja Sama Perusahaan Perkebunan Sumatera (Sumatra Planters Association), It was checked that per December 2011 the rate was Rp 7,025/ kg, and rice allowance for single worker was15 kg, total of minimum salary was Rp 1,238,875/ month.

Payment records show that workers are receiving more than the minimum wag,. 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 payment is on time.

Company provide 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.

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.

SIMP has policy regarding the recognizing freedom of association and respect for every worker to have the right to form and to be a member of labor union under RSPO policy dated on May 1, 2009. Workers are free to join “Serikat Pekerja Pertanian dan Perkebunan - Serikat Pekerja Seluruh Indonesia” , the election period for each unit performed every 5 years, the last periode is 2008 -2012.

Checks on records confirmed that labor union meeting was conducted regularly and the minutes of meetings were maintained.

Yes

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 programmes. Children are not exposed to hazardous working conditions.

no worker under 18 years will be accepted. There was memorandum from Head of HRD No. 21/HRD/INT/VII/2009 “Larangan Mempekerjakan Pekerja di Bawah Umur”

Yes

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.

SIMP has 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. The policy indicated that workers have same opportunities for promotions regardless race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliations or age.

Records of employee‟s reqruitment and its contract agreement was available. It was confirmed that there was no discrimination on working opportunities, all workers were treated properly through interview with workers in mill and estates and during stakeholder meeting

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 opportunitie, all workers were treated properly

Records of employee‟s reqruitment and its contract agreement was available.

Yes

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.

Policy on sexual harassment was available in company‟s policy of RSPO. There is SOP to prevent and handle sexual harassment available in document no. AA-HR-309.01-R0.

There was gender committee available at mills and plantations. Both policy and SOP has been communicated to respective worker at mill and plantation during labour union meeting held by gender committee. Important iInformation on gender issues was communicated during the meting.

grievance mechanism. Records of pregnant leave, and permission letter for breast feeding women were available.

There was socializaton of Gender Committee on 31 Jan 2011 & Feb 2011, 11 Feb 2011,on Organization Stucture of Gender Committee.

Yes

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

and contractors. In the Agreement with schemed smallholders there was pricing mechanism of FFBed available. The FFB prices based on current prices agreed by both parties and updated monthly. Records of payment from company to smallholder was available, include its deductions if any. Interviews with third party 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 supplier and contractor shall equipped their activities with personnel protection equipment (PPE) properly.

Yes

Criterion 6.11 Grower and miller contribute to local sustainable deve-lopment wherever appropriate.

There were policy for contributions to the local development stated in RSPO policy. Implementation of this policy were available as Corporate Social Responsibility (CSR) activities for year 2010-2011

CSR program was available for both Kayangan Estate and Kencana Estate mil and plantation through

Yes



COMPLIANCE

contributions to local government and communities, such as: a. Providing roads maintenance for villages closed to plantations using company‟s grader machines b. Providing transportation (school bus) and education facilities to play groups, elementary school,junior and

senior high school for employees and communities around estates and mill c. Providing and improve health facilities for villages closed to plantations d. Charity to local community in festival days, such as festival day of Iedul Fitrh and Iedul Adha.

Records of CSR were properly maintained

Criterion 7.0 estate included in the scope of this assessment.Principle 7 is not applicable to this

assessment.

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

The company can clearly demonstrate improvement in quality, environmental, safety and health, as well as social aspects, for both activities mills and plantations whic recorded in Master Plan for Continuous Improvement. 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 (8.1), such as:

a. Monitoring of environmental impacts conducted on a regular basis and in conjunction with continuous monitoring and reporting the results of environmental management that has been conducted and reported to the relevant agencies on a periodic basis according to existing regulations

b. Also made efforts to reduce emissions by saving energy and water campaign to all employees by making an appeal stickers, pamphlets and direct socialization. Limit the use of electrical energy during the day and several other attempts.

c. Company intense communication and socialization to the shareholders of the policies and programs - CSR program created and run by the company and periodically ask for feedback from stakeholders in order to improve the quality and quantity of programs that are relevant to the needs of the community / stakeholders in the company's operations

Yes

3.2.2 Noteworthly Positive Components

a. Transparant information for public and compliance of relevant law and regulation.

Company has commitment of transparancy of information and documents that available for public and effort to comply relevant law

and regulation, such as monitoring RKL/RPL (Environmental Management And Monitoring Reports), Report of Toxic and Hazardous

Waste, Hak Guna Usaha/HGU (Land Use Title), IzinLokasi (user rights /Site Permit), Izin Usaha Perkebunan (Plantation Operation

Permit), Identifikasi HCV (HCV identification), Surat Ijin Pengambilan Air Tanah/ SIPA (underground water use permit), Current FFB

prices, etc (See 1.2 and 2.1)

b. Economic improvement

Economic improvement was noted in the Annual Budget, both for Kayangan Estate and Kencana Estate mills and plantations. It

covers a minimum period of 3 years which include production forecast, operating cost production cost. Company put the target of mills

and plantations production wil be improve from year to year, and there was target set up for at least 3 years. (See 3.1)

c. Water management plan

The plan includes the maintenance of culverts and construction of proper storm drains and silt pits to control any surface run off from

entering into water courses

d. Implementation of Integrated Pest Management (IPM)

There was serious attention given by SIMP management for implementing integrated pest management (IPM). This action was taken

in order to reduce dependency on chemicals, through introducing and expanding the beneficial plant establishment such as Turnera

subulata, Euphorbia heterophylla, and Casia cobanensi. IPM also includes establishment of barn owl boxes around the plantation.

Management was comitted that the program will be improve countinuously

e. Decrease of use of restricted chemicals, such as paraquat (4.6)

Management has committed to further reduce paraquat Usage and looking for alternatives of paraquat. The usage was gradually

reduced since 2009-2010 and will be continued through The Paraquat (i.e Gramoxone) Reduction Program, from 2011 until 2014.


3.3 Non Conformity Register.

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 raised during the previous assessments.

Non ConformityReport – SIP-01.12/12

Date of issued 22.12.2011 NCR issued by : WS

Location PT Salim Ivomas Pratama Kayangan Estate

Discussed with : RSPO Team

RSPO – Criterion : RSPO – Criterion : 4.6.

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

Description of Finding/Objective Evident: It was found in Kencana Estate that usage of paraquat increased from 2009 - 2010, however that budget for paraquat in 2012 increase than in 2011.

Classification Major Minor

Correction: Date of implementation: The Vice President of Agronomy Division has made memorandum to Estate Manager through No. VPA-AMA/XII/2011/056 dated 27

Desember 2011) to decrease of paraquat usage and try to find the substitution for this restricted chemical

Auditee sign: 2/2/2012

Ida Bagus Mayun Management Representative

Auditor Verification: Auditor has verified the correction taken by company that the worker who has not trained yet, were not be able to work with chemicals. The corrective action taken was to include them in the appropriate training program which will be provided by company, internally or externally.

Auditor Comments and Conclusion corrective action verified and accepted implementation verified by submitted documents implementation verified on-site the effectiveness of corrective action will be verified in next audit

Date of verification: 4/2/2012 Auditor(s) sign:

Non Conformity Report – SIP-02.12/12

Date of issued 22.12.2011 NCR issued by : AM

Location PT Salim Ivomas Pratama - Kayangan Estate - Kayangan Mill

Discussed with : RSPO Team

RSPO – Criterion : Criterion 4.7 An occupational health and safety plan is documented, effectively communicated and implemented.

Description of Finding/Objective Evident: Spraying women was not well trained about pesticides risk to their health so that they used their shawl to wipe the sweat.

Classification Major Minor

Correction: Date of implementation: Sustainability Department together with Estate Manager will do the RSPO socialization and training to all workers regarding the environmental and safety risk oh the chemicals, such as fertilizer and hazardous chemicals, and how to control them as well.

Auditee sign: 2/2/2012

Ida Bagus Mayun Management Representative

Auditor Verification: 1. Auditor has verified the correction taken by company that the socialization and traing was performed accordingly 2. The auditor has verified the planning to build another shower room, and to be budgeted in 2012

Auditor Comments and Conclusion corrective action verified and accepted implementation verified by submitted documents implementation verified on-site the effectiveness of corrective action will be verified in next audit

Date of verification: 4/2/2012 Auditor(s) sign:


3.3.2 Resume of Audit Results

Indonesian National Interpretation of RSPO Principles and Criteria

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

NC 1 1 1 1 1 1 1 1 1 1 1 2 2 1 1 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 NA 1

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

“Audited”: “1” conforming, “2” Minor Non-Conformity, ““3” Major Non-Conformity, NA” not applicable, “ “ # NC”: number of Non-Conformities found AUDIT OUTCOME

During this audit, 0 2

Non-Conformities MAJOR Non-Conformities MINOR

3.4 Issues raised during stakeholder consultation and company responses. Stakeholder meeting was held on October 13, in both location Kayangan Estate office and Kencana Estate office. The subjects raised and responsed by the company will be reviewed at the first annual surveillance assessment. Subject discussed during the stakeholder meeting were: (1) Knowledge of RSPO (2) Benefits of the existence of oil palm plantation PT SIMP 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 stakeholder meetings:

1. Participants in general stakeholders meeting has informed the RSPO, although their understanding varied between. Participants who are relatively more aware RSPO mainly participants closed to plantations, such as labour associations, the village chief, and chairman of KUD. They know this RSPO information from the management of PT SIMP at stakeholders meeting conducted earlier.

2. Participants stekeholders meeting stated that the existence of oil palm plantation PT SIMP has provided benefits to society. 3. The perceived benefits include:

a. Marketing palm fruit (FFB): KUD can sell their FFB to PT SIMP with good price b. 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.

c. Increasing the economic life of the community. d. Improved local economy, especially felt by the plasma through the ownership of the garden. Their lives better than before it

becomes a plasma. It is also recognized by the Head of Plantations people who know the initial conditions (plasma) when opening the garden compared with current conditions. Indicators of economic improvement, among others, the condition of the building houses, possession of motor vehicles, both motorcycles and cars. Currently almost all plasmas have a motorcycle, and pretty much have to own a car. Another indicator is many child can attend to school.

4. Corporate Social Responsiblity (CSR) Program a. Improvement of road infrastructure b. Roads connecting villages (SP 1 - SP 1) periodically repaired by the company in accordance with the priority scale. These

improvements generally through the hardening of the direct path of the company, or through the help of heavy equipment to the public.

c. Improvement of the health service d. Health facilities / clinics owned company located in the location of the garden provide health care services not only to

employees but the community gardens around the garden, especially plasma. e. Contribution the great days of national and religious and other activities f. The company provides assistance in cash or in kind for religious activities (Idu-Fitr, Eid al-Adha) and national holidays

(Agustusan). Assistance is generally provided on the basis of public demand through the proposals. In addition to religious activities and national holidays, the company also provides assistance for specific activities in accordance with the proposals of stakeholders, such as lighting facilities on the post BKPM.

g. Educational assistance h. Company gave contribution for educational activities, among others, elementary school teacher salary (for teachers),

textbooks (Pelita Reader program), training library managers, rehabilitation of school buildings: a classroom and toilets (Pelita Safe program), sanitation, clean water (Pelita program healthy), and the Pelita program Asri (comfort of the school environment), assistance for high school computer 2, the assistance of teachers from the company for taught courses in the local content (education plantations), cattle assistance to high school 2 as a media practice of organic fertilizer and maintenance / livestock farming, transportation assistance for student employees. PT SIMP in collaboration with Foundation Tanoto (Tanoto Foudation), especially for scholarship program to continue studies for basic,medium, or higher level education.

5. Problems associated with the presence or activity of the plantation Some of the problems that arise, whether experienced or known to stakeholders include:

a. Almost all KUD complained about the additional cost of transporting FFB, beyond the cost of loading and unloading which has been agreed between the plasma and associated transport services. There was additional costs charged to the plasma so it is very detrimental to the plasma.

b. There is often a long queue in the sale of FFB to the mill. This queue could be up to 3 days. This condition is very detrimental to the plasma because will declining quality of FFB, so that the price FFB will be cheap.

c. Road condition.


Condition of roads is also interfere children school activities, especially in case of rainy season. The majority of students were elementary and some 123 junior school (in the SP 3 and SP 4) and high school (in SP 4). In this case the children does not go to school in rainy season, because the roads are slippery and damaged and it was difficult to pick up them

6. The results of the meeting with the management of PT SIMP This meeting was conducted to clarify and verify some things related to the stakeholder meeting mainly clarifications and solutions that have made the management of PT SIMP to the problems disclosed stakeholders meeting participants. The results of the meeting / clarifications presented the management of PT SIMP as follows: a. Additional fee beyond the cost of transport (loading and unloading) as expressed in stakeholders meeting recognized

indeed occur. This happens because of the transportation services are incorporated in the SPTI (Transport Workers Union Indosnesia) are beyond the authority of the management of PT SIMP. Legally, their existence (SPTI) is listed in the local government, and monopolize transportation FFB. The management of PT SIMP has facilitated meetings between both parties (smallholders and SPTI), but until now the plasma / farmer groups are not "brave" and not willing to attend because they feel fear and worry SPTI brought their FFB . The management of PT SIMP already raised the matter to the leadership / management of SPTI, but the management of SPTI stated that additional fee was not a management policy of SPTI.

b. PT SIMP will repair road infrastructure according to ability and corporate priorities, as most roads are actually the responsibility of local government.

7. Suggestions / recommendations: a. The information of RSPO needs to be socialized more intensive through media such as information boards around the

plantation offices. Sosialization and communication can be done through meetings or activities such as public anniversaries, religious holidays, or visiting to community.

b. SIMP will be improved public facilities such as village offices (kantor desa), schools, clinics, and others in coordination with local government.

c. Settlement of the issue of additional cost should be resolved and sought the best solution that mutually benefits both the plasma and transport entrepreneurs. This activity should be facilitated by PT SIMP management by involving farmers / smallholders /KUD - SPTI - local government.

3.5 Formal sign off of assessment findings.

3.5.1 Acknowledgement of internal responsibility by the client. 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. 3.5.2 Statement by certifier. I, the undersigned, declare 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.

Name Ida Bagus Mayun

Position Management Representative

Signature

Date

Name Leopold Hutapea

Position Certification Manager

Signature

Date


Attachment A. List of Abbreviatons

AMDAL Analisis Mengenai DAmpak Lingkungan (Analysis on Environmental Impact)

BOD Biological Oxygen Demand

BPN Badan Pertanahan Nasional (National Land Body)

CPO Crude Palm Oil

CSR Corporate Social Responsibility

EFB Empty Fruit Bunch

EMS Environmental Management System

FFB Fresh Fruit Bunch

GPS Global Positioning System

HCV High Conservation Value

HCVF High Conservation Value Forest

HGU Hak Guna Usaha (Land Right)

HIRA Hazard identification and risk assessment

IPM Integrated Pest Management

IUP Land use permit (Ijin Usaha Perkebunan)

Jamsostek Jaminan Sosial Tenaga Kerja (Social Insurance for Employees)

MOU Memorandum of Understanding

KUD Koperasi Unit Desa (Village Cooperatives)

KYE Kayangan Estate

KCE Kencana Estate

MSDS Material Safety Data Sheet

NC Non Conformity

OSH Occupational Safety and Health

OSHAS Occupational Safety and Health Assessment Scheme

P&C Principle and Criteria

PK Palm Kernel

PKB Perjanjian Kerja Bersama (Collective Agreement)

PKS Pabrik Kelapa Sawit (Palm Oil Mill)

POM Palm Oil Mill

POME Palm Oil Mill Effluent

PPE Personal Protective Equipment

PT Perseroan Terbatas (Limited Company)

PT SIMP PT Salaim Iv mas Pratama

R&D Research and Development

RKL Rencana Pengelolaan Lingkungan Hidup (Environmental Management Plan)

RPL Rencana Pemantauan Lingkungan Hidup (Environmental Monitoring Plan)

RSPO Roundtable on Sustainable Palm Oil

RSPO NI Roundtable on Sustainable Palm Oil National Interpretation

SA8000 Social Accountability 8000

SIA Social Impact Assessment

SOP Standard Operating Procedure

WHO World Health Organization


Attachmen B: Draft of Certificate

CERTIFICATE

In accordance with TÜV NORD Indonesia procedures,a certificate is hereby given to

PT. SALIM IVOMAS PRATAMA

Head Office:

Sudirman Plaza Lt. 11 & 12 Jl Jendral Sudirman Kav. 76-78

Jakarta- Indonesia.

Name of Mills Location GPS

Kayangan Palm Oil Mill Bagan Sinembah Village, Rokan Hilir Regency, Riau Province

N : 01o39’36.8”

E: 100o35’26.2”

Applies a Sustainable Palm Oil Management System in line with National Interpretation of RSPO Principles and Criteria for

Sustainable Palm Oil Production of Republic of Indonesia vers.2008 with the following scope of certification

Production of Crude Palm Oil and Palm Kernel

CPO Tonnage Total Production 53,400 t

CPO Tonnage Claimed 53,400 t

Palm Kernel (PK) Tonnage Total Production 12,757 t

Palm Kernel (PK) Tonnage Claimed 12,757 t

Certificate Registration No: ……………….

Audit Report No. …………………

Issued date of Certificate : …………………

RSPO approval date: …………………

Valid Certificate: …………………

President Director

This certification was carryout in accordance with the TÜV NORD Indonesia auditing and certification

procedures and is subject to regular surveillance audits.

PT. TÜV NORD Indonesia is a subsidiary of TÜV NORD CERT GmbH

Langemarckstrasse 20 D - 45141 Essen, Germany


A T T A C H M E N T C M O D U L E E : R S P O M A S S B A L A N C E S U P P L Y C H A I N

Requirement Procedure, Standard, Policy Records

E.1 Documented procedures

E.1.1 The facility shall have written procedures

and/or work instructions to ensure the

implementation of all the elements

specified in these requirements. This shall

include at minimum the following:

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

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

E.1.2 The facility shall have documented

procedures for receiving and processing

certified and non-certified FFBs.

E.2 Purchasing and goods in

E.2.1 The facility shall verify and document the

volumes of certified and non-certified FFBs

received.

E.2.2 The facility shall inform the CB immediately

if there is a projected overproduction.

E.3 Record keeping

E.3.1 The facility shall maintain accurate,

complete, up-to-date and accessible

records and reports covering all aspects of

these requirements.

E.3.2 Retention times for all records and reports

shall be at least five (5) years.

E.3.3

a) The facility shall record and balance all

receipts of RSPO certified FFB and

E.1 Documented Procedures

E.1.1 PT Salim Ivomas Pratama had set

procedures to control operational

of our business such as :

a) SOP related to Plantation Operation (Agronomy), SOP related to Palm Oil Mill Operation (Engineering) and SOP related to implementation of Environmental, Health & Safety Management System (ISO 14001 & OHSAS 18001)

b) PT Salim Ivomas Pratama has pointed some employees (persons) who have authority to implement RSPO requirements.

E.1.2 Procedures for receiving and

processing certified and non

certified FFBs was including in

SOPP Engineering (List

attached).


E.2.1 SOP Penerimaan Buah (FFBs

Receiving Procedure) SOPP No: CR-

ENG-101-TBS.06.11-1

E.2.2 PT Salim Ivomas Pratama (Kayangan

Estate, Kencana Estate and

Kayangan Factory which has auditted

by CB will inform immediately if there

is a projected over production in

future.

E.3 Record keeping

E.3.1 Procedure to control records and

reports was covered in Record Control

Procedures / Prosedur Pengendalian

Dokumen (SIMP – PROS – 32)

E.3.2 Retention time of records and reports

has been stated in Record Control

Procedure / Prosedur Pengendalian

Rekaman (SIMP – PROS – 32)

E.3.3

a) SOP Penerimaan Buah (FFBs Receiving Procedure) SOPP No: CR-

E.1 Documented Procedures

E.1.1

a) List of SOP related to Plantation Operation (Agronomy Standard Operating Procesures) , Palm Oil Factory Operation (Engineering Standard Operating Procesures) and Environmental, Health and Safety Management System Standard Operating Procesures was attached.

b) Person who are pointed as authorized person in implementation of elements requirements are : 1) Ida Bagus Mayun (Manager

Sustainability) 2) P Sitohang (Vice President

Agronomy) 3) J D Saragih (Vice President

Engineering)

E.1.2 SOP Penerimaan Buah (FFBs

Receiving Procedure) SOPP

No: CR-ENG-101-TBS.06.11-

1


E.2.1 Volume of certified and non

certified FFBs which is received

in Palm Oil Mill (POM) was

recorded and documented in

POM‟s daily and monthly

production report. (Montly

production record of FFBs

processed and production of

CPO/Crude Palm Oil and palm

kernel /PK) was attached.

E.2.2 Production record was attached in

this report (Monthly production of

FFBs, CPO and Palm Kernels in

2010, 2011 and Budget for 2012).

E.3 Record keeping

E.3.1 Records which is related to these

requirements was written on

Record Master Document Form

(FORM/PROS – 32/01)

E.3.2 In Record Control Procedures

(SIMP – PROS – 32) it was stated

that retention time to keep

documents and records was 5

years.

E.3.3

a) Daily and Monthly Production report at Palm Oil Mill (POM) has been


deliveries of RSPO certified CPO, PKO

and palm kernel meal on a three-

monthly basis.

b) All volumes of palm oil and palm kernel oil that are delivered are deducted from the material accounting system according to conversion ratios stated by RSPO.

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

E.3.4 The following trade names should be

used and specified in relevant documents,

e.g. purchase and sales contracts, e.g.

*product name*/MB or Mass Balance.

The supply chain model used should be

clearly indicated.

E.3.5 In cases where a mill outsources activities

to an independent palm kernel crush, the

crush still falls under the responsibility of

the mill and does not need to be

separately certified. The mill has to

ensure that the crush is covered through

a signed and enforceable agreement.

E.4 Sales and good out

E.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 or Mass Balance)

d) The quantity of the products delivered;

e) Reference to related transport documentation.

E.5 Training

E.5.1 The facility shall provide the training for

all staff as required to implement the

requirements of the Supply Chain

Certification Systems.

E.6 Claims

E.6.1 The facility shall only make claims

regarding the use of or support of RSPO

certified oil palm products that are in

compliance with the RSPO Rules for

Communications and Claims.

ENG-101-TBS.06.11-1

b) Currently N/A c) PT Salim Ivomas Pratama will use

Mass Balance since not all estate and factory has been certified.

E.3.4 Currently N/A

E.3.5 Processing of Palm kernel which is

produced by PT Salim Ivomas

Pramata (Kayangan Factory) was

outsourced to other company.


E.4.1 Sales invoice issued for RSPO

certified products which is

delivered to customers will always

include such information below :

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 or Mass Balance)

d) The quantity of the products delivered;

e) Reference to related transport documentation

E.5 Training

E.5.1 Prosedur Pelatihan Karyawan

(Training Pricedure) : SIMP–

PROS –03

E.6 Claims

E.6.1 The company will obey and follow

RSPO rules for communications

and claims procedures regarding to

claims on RSPO certified oil palm

products.

made by monthly basis which is containing FFBs processed, CPO and Palm Kernel production monthly.

b) N/A

c) Mass balance sales will be conducted by the company after receiving RSPO certificate.

E.3.4 Currently N/A

E.3.5 Palm kernel which is produced

by PT Salim Ivomas Pramata

(Kayangan Factory) was sold

to other company who had

palm kernel crusher that is

covered through a signed and

enforceable agreement


E.4.1 Sales invoice issued for RSPO

certified products which will be

delivered to the customer will

be treated as requested by the

requirements.

E.5 Training

E.5.1 Training which is required by

employee related to their job

has been provided and will be

always updated according to

availability of resources in

company.

E.6 Claims

E.6.1 claims of RSPO certified oil

palm products will follow

RSPO rules after company

receiving RSPO certificate.

rspo certification assessment public summary

Documents