rspo - roundtable on sustainable palm oil · 2014-11-02 · pt. mutuagung lestari assessment report...

PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT

Roundtable on Sustainable Palm Oil Certification

[ ]Stage-1 [ ] Stage-2 [√] Surveillance [ ] Re-Assessment

Plantation Management/Owner : SIME DARBY Plantation Sdn Bhd

Plantation Name : PT BAHARI GEMBIRA RIA

Ladang Panjang POM and Ladang Panjang

Estate

Location :

Ladang Panjang Village, Muaro Jambi District, Jambi Province

Certificate Code : MUTU-RSPO/019

Date of certificate issue : 09 July 2012

Date of expiry of certificate : 08 July 2017

Assessment Assessment

Date PT. Mutuagung Lestari

Auditor Review

by Approve

by

ST2

22-26 November 2010

Deni A. Novendi; Faruk A. Nasir; Heri Antoni; Ibnu S. Prabudi

Reny Rustianingsih

Tony Arifiarachman

Major Verification

26-27 December 2011

Taufik Margani; Octo HPN Nainggolan; Marsudi Eko S.

Reny Rustianingsih

Tony Arifiarachman

S1 21-24 May 2013 Oktovianus Rusmin; Muardi Marwas;

Ardiansyah; Isyana Dewi Taufik Margani

Tony Arifiarachman

S2 19-22 May 2014

Taufik Margani (Lead Auditor), Ardiansyah

(Auditor), Isyana Dewi (Auditor), Muhammad

Rinaldi (Auditor Trainee)

Octo HPN

Nainggolan

Tony

Arifiarachman

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

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

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

MUTU Certification • Accredited by Accreditation Services International on March 12th, 2014

Assessment Approved by MUTUAGUNG LESTARI on:

S2 7 July 2014

http://www.mutucertification.com/


ASSESSMENT REPORT

SPO – 4006a.5 ii Prepared by Mutuagung Lestari for Ladang Panjang POM – PT Bahari Gembira Ria

TABLE OF CONTENT

FIGURE

Figure 1. Location Map of PT. Bahari Gembira Ria Figure 2. Operational Map of PT. Bahari Gembira Ria

1 2

1.0 SCOPE of the SURVEILLANCE ASSESSMENT

1.1 National Interpretation Used 3

1.2 Organization Information 3

1.3 Type of Assessment 3

1.4 Location of Plantations, Mill and Area Statement 3

1.5 Description of Supply Base 4

1.6 Dates of Plantings and Cycles 5

1.7 Tonnage Certified 5

1.8 Other Certifications 6

1.9 Time-Bound Plan for Other Management Units 6

2.0 ASSESSMENT PROCESS

2.1 Certification Body 9

2.2 Assessment Team 9

2.3 Assessment Methodology, Assessment Process and Locations of Assessment 9

2.4 Stakeholder Consultation and List of Stakeholders Contacted 12

2.5 Date of Next Surveillance Visit 12

3.0 ASSESSMENT FINDINGS

3.1 3.2

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

13 36

3.3 Conformity Checklist of Certificate and Logo Use 39 3.4 Summary of RSPO Partial Certification 40

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

42

3.6 Summary of Arising Issues from Public, Management and Auditor Responses 49

4.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Signing of Assessment Findings 54

APPENDICES

1. List of Stakeholders Contacted in the RSPO Certification Process 55

2. Assessment Program 56

3. Glossary 57

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 1

Prepared by Mutuagung Lestari untuk PT Bahari Gembira Ria (Sime Darby Plantation Sdn Bhd)

Figure 1. Location Map of PT Bahari Gembira Ria

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 Page 2

Prepared by Mutuagung Lestari untuk PT Bahari Gembira Ria (Sime Darby Plantation Sdn Bhd)

Gambar 2. Operational Map of PT Bahari Gembira Ria


ASSESSMENT REPORT


Prepared by Mutuagung Lestari for Ladang Panjang Factory – PT Bahari Gembira Ria (Sime Darby Plantation Sdn Bhd)

1.0 SCOPE OF THE CERTIFICATION ASSESSMENT

1.1 National Interpretation Used National Interpretation, RSPO Principles and Criteria (P&C) for Sustainable Palm Oil Production, Republic of Indonesia - RSPO INA-NIWG, May 2008 and RSPO Supply Chain Certification Standard November 2011.

1.2 Informasi Organisasi

1.2.1 Company name PT Bahari Gembira Ria, MINAMAS Plantation – SIME DARBY Group

1.2.2 Contact person

1.2.3 Company address and site address Office: The Plaza Lt. 36 JL. MH Thamrin Kav. 28-30, Jakarta 10350

site : Ladang Panjang Village, Sungai Gelam Sub District, Muaro Jambi Region. Jambi Province

1.2.4 Telepon +62-21-29926000

1.2.5 Fax +62-21-29922686

1.2.6 E-mail [email protected]

1.2.7 Web page address www.simedarby.com

1.2.8 Company status Private

1.2.9 Management Representative who completed the application for certification

Mohamad Pirabaharan (Head of Plantation Sustainable Quality Management, Minamas Plantation)

1.2.10 Registered as RSPO member September 7, 2004 1–0008–04–000–00

1.3 Type of Assessment

1.3.1 Scope of Assessment Mill and Estate

1.3.2 Type of certificate Tunggal

1.3.3 Company names listed in the certificate PT BAHARI GEMBIRA RIA

1.3.4 Number of management unit 1 (one) Mill (Ladang Panjang POM) and 1 (one) Estate (Ladang Panjang Estate)

1.4 Locations of Mill, Plantations and Area Statement

1.4.1 Location of Mill

Name of Mill Location

GPS

Latitude Longitude

Ladang Panjang Ladang Panjang Village, Sungai Gelam Sub District, Muaro Jambi Region. Jambi Province

1° 04' 33" S 103° 47' 34" E

1.4.2 Location of Supply Base

Name of Supply Base

Location GPS

Latitude Longitude

Ladang Panjang Ladang Panjang Village, Sungai Gelam Sub District, Muaro Jambi Region. Jambi Province

1° 49' 35" – 1° 40' 24" S

103° 45' 52" – 103° 55' 44" E

mailto:[email protected]

http://www.simedarby.com/


ASSESSMENT REPORT



1.4.3 Tenure

Private -

State a. 1,202.04 Ha. Based on Land Use Rights (HGU)

No. 4 Year 2003.

b. 2,178.16 Ha. In publishing process of HGU

Community -

1.4.7 Area Statement

Total area 3,380.20 Ha

Mature area 2,851.34 Ha

Immature area - Ha

Mill 21.60 Ha

Emplacement 32.21 Ha

Infrastructure 99.86 Ha

Unpalatable area 375.87 Ha

HCV (conservation area is include inside the planted area) 1,799.71 Ha

1.5 Description of Supply Base

1.5.1 Description of Mill

Name of Mill Capacity

(tones/ hour)

FFB Processed

(tones/ year)

CPO Palm Kernel PKO

Out put (tones)

Extraction (%)

Out put (tones)

Extraction (%)

Out put

(tones)

Extraction (%)

Ladang Panjang

30 138,308.73 29,535.96 21.36 11,225.43 4.03 - -

* Source: Production Data of Ladang Panjang Factory May 2013 – April 2014

1.5.2 Description of Estate(s)

Name of Estate(s) Total Area

(Ha) Planted Area

(Ha) FFB

(tones/year) Yield

(tones/ha/year)

Supplied to Mill

FFB (tones/year)

%

Estate Ladang Panjang 3,380.20 2,851.34 44,659.34 15.66 44,659.34 100

* Source: Production Data of Estate Ladang Panjang May 2013 – April 2014

1.5.3 Smallholder(s) and other source

Name of

source(s) Member(s) Location

Total Area (Ha)

FFB (tones/year)

Supplied to Mill

FFB (tones/year)

%

Air Merah Estate (Plasma)

Kab Maro Jambi 182.57 182.57 100

KUD Manggar Jaya

- Kec. Sungai Gelam, Kab Maro Jambi

93,462.30 93,462.30 100 KUD Karya

Maju -

Kec. Sungai Gelam, Kab Maro Jambi

KUD Marga Jaya



ASSESSMENT REPORT



KUD Karya Mandiri


KUD Mitra Inti S. Makmur


TOTAL 93,644.87 93,644.87 100

* Source: Production Data of Ladang Panjang Factory May 2013 – April 2014

1.5.4 Product categories FFB/CPO/PK

1.6 Dates of Plantings and Cycles

1.6.1 Age profile of planted palms*

Planting Year Hectare

Ladang Panjang Estate (Ha)

Total (Ha)

1997 361.63 361.63

1998 381.49 381.49

1999 171.40 171.40

2000 556.30 556.30

2001 130.66 130.66

2002 80.00 80.00

2003 790.53 790.53

2007 107.86 107.86

2009 271.47 271.47

TOTAL 2,851 2,851

1.6.2 New Planting area after November 2007 271,47 Ha

1.6.3 Planting Cycle 1st/2nd Cycle Year

1.7 Approximate Tonnage Certified

1.7.1 Past Annual Claim Certified Product

FFB Production 44,195.77 Tones/year

CPO Production 9,281.11 Tones/year

Palm Kernel (PK) Production 1,812.03 Tones/year

Palm Kernel Oil (PKO) Production - Tones/year

1.7.2 Claim Certified Tonnage of FFB

Name of Estate(s) Total Area

(Ha) Planted Area

(Ha) FFB

(tones/year) Yield

(tones/ha/year)

Ladang Panjang 3,380.20 2,851.34 46,892.31 16.4

1.7.3 Claim Certified Tonnage of Palm Product

Name of Mill Capacity

(tones/ hour)

FFB Processed

(tones/ year)

CPO Palm Kernel PKO

Out put (tones)

Extraction (%)

Out put (tones)

Extraction

(%)

Out put (tones)

Extraction (%)


ASSESSMENT REPORT



LPF 30 46,892.31 10,361 22.00 1,923 4.10 - -

1.8 Other Certifications

1.8.1 ISO 9001:2008/ISO 14001: 2004 -

1.8.2 OHSAS 18001:2007 -

1.8.3 HACCP -

1.8.4 Others -

1.9 Time Bound Plan for Other Management Units

MANAGEMENT UNIT Estate (Supply Base)

Time Bound LOCATION P O M Time Bound

Sekunyir. PT. Indotruba Tengah

Certified 2010 Sekunyir Certified 2010 Seruyan and West Kotawaringin District – Central Kalimantan

Seruyan Certified 2010

Manggala. PT. Tunggal Mitra Plantations

Certified 2010 Manggala 1 Certified 2010 Rokan Hilir District – Riau Manggala 2 Certified 2010

Manggala 3 Certified 2010

PT. Sime Indo Agro

Certified 2010 PT. Sime Indo Agro

Certified 2010 Sanggau District –West Kalimantan

Teluk Siak. PT Aneka Inti Persada

Certified 2011 Teluk Siak Certified 2011 Pekanbaru, Siak District – Riau Pinang Sebatang Certified 2011

Aneka Persada Certified 2011

Sungai Pinang. PT. Bina Sains Cemerlang

Certified 2012 Sungai Pinang Certified 2012 Musi Rawas District – South Sumatera Bukit Pinang Certified 2012

Sukamandang. PT. Kridatama Lancar

Certified 2011 Sukamandang Certified 2011 Seruyan and East Kotawaringin District – Central Kalimantan

Sapiri Certified 2011

Baras Danum Certified 2011

Kuala Kuayan Certified 2011

Pemantang. PT. Teguh Sempurna

Certified 2011 Pemantang Certified 2011 Seruyan and East Kotawaringin District – Central Kalimantan

Kawan Batu Certified 2011

Hatan Tiring Certified 2011

Batang Garing Certified 2011

Alur Dumai. PT Lahan Tani Sakti

Certified 2011 Alur Dumai Certified 2011 Rokan Hilir District – Riau

Teluk Bakau. PT. Bhumireksa Nusa Sejati

Certified 2011 Teluk Bakau Certified 2011 Indra Giri Hilir District – Riau

Nusa Perkasa Certified 2011

Nusa Lestari Certified 2011

Mandah. PT. Bhumireksa Nusa Sejati

Certified 2014 Mandah Certified 2011 Indra Giri Hilir District – Riau Rotan Semelur Certified 2011

Angsana Mini. PT Sajang Heulang

Certified 2011 KKPA-1 PT.SHE Certified 2013 Tanah Bumbu District – South Kalimantan Pantai Bonati Certified 2011

Angsana. PT Ladangrumpun Suburabadi

Certified 2011 Angsana Certified 2011 Tanah Bumbu District – South Kalimantan Gunung Sari Certified 2011

KKPA-4 PT.SHE Certified 2013

Mustika. PT Sajang Heulang

Certified 2013 KKPA-2 PT.SHE Certified 2013 Tanah Bumbu District – South Kalimantan KKPA-3 PT.SHE Certified 2013

KKPA-5 PT.SHE Certified 2013


ASSESSMENT REPORT



Gunung Aru. PT Bersama Sejahtea Sakti

Certified 2011 Gunung Aru Certified 2011 Kotabaru District – South Kalimantan

Gunung Kemasan Certified 2011

Laut Timur Certified 2011

Pantai Timur Certified 2011

Bebunga. PT. Langgeng Muaramakmur

Certified 2011 Sungai Cengal Certified 2011 Kotabaru District – South Kalimantan

Bebunga Certified 2011

KKPA Sungai Cengal

2014

Pondok Labu. PT Paripurna Swakarsa

Certified 2012 Binturung Certified 2012 Kotabaru District – South Kalimantan

Pondok Labu Certified 2012

Rampa Certified 2012

Sesulung Certified 2012

Selabak. PT Swadaya Andhika

Certified 2012 Selabak Certified 2012 Kotabaru District – South Kalimantan

Randi Certified 2012

Sangkoh Certified 2012

Lanting Certified 2012

Rantau. PT Laguna Mandiri

Certified 2012 Rantau Certified 2012 Kotabaru District – South Kalimantan

Matalok Certified 2012

Betung. PT Laguna Mandiri

Certified 2014 Betung Certified 2012 Kotabaru District – South Kalimantan Sekayu Certified 2012

Ungkaya. PT Tamaco Graha Krida

Certified 2012 Ungkaya

Certified 2012 Morowali District – Sulawesi Tengah

Plasma TGK 2015

Ladang Panjang. PT Bahari Gembira Ria

Certified 2012 Ladang Panjang Certified 2012 Muaro Jambi District - Jambi Plasma BGR 2015

Rantau Panjang. PT Guthrie Pecconina Indonesia

Certified 2012 Rantau Panjang Certified 2012 Musi Banyuasin District – South Sumatera

Bumi Ayu Certified 2012

Karang Ringin Certified 2012

Napal Certified 2012

Mangun Jaya Certified 2012

KKPA Sungai Pinang

2015

Blang Simpo. PT Perkasa Subur Sakti

Certified 2013 Tamiang (PT PPP)

Certified 2013 Aceh Tamiang and East Aceh District – Nanggroe Aceh Darussalam

Batang Ara ((PT PSK))

Certified 2013

Blang Simpo-01 (PT PPP)

Certified 2013

Blang Simpo-02 (PT PPP)

Certified 2013

MAS. PT Mitra Austral Sejahtera

2020 MAS 1 2020 Sanggau District – West Kalimantan

MAS 1 2020

MAS 1 2020

Lembiru. PT Sandika Nata Palma

Certified 2014 Lembiru Certified 2014 Ketapang District – West Kalimantan

Awatan Certified 2014

Pelanjau (PT BAL) 2014

Sungai Putih (PT BAL)

2014

Baturus (PT BAL) 2014


ASSESSMENT REPORT



Sime Darby has achieved 39 managament units in Malaysia and 21 Management Units in Indonesia RSPO certified. There was change of the Time Bound Plan under Sime Darby cause the Sime Darby postpone the others certification process. Change of the Time Bound Plan explaination: PT Mitra Austral Sejahtera. There are social issue still unresolved from the Serikat Petani Kelapa Sawit (SPKS) Sanggau, however the improvement are in progress. Sime Darby has informed the Time Bound Plan progress, MUTUAGUNG has consider that Sime Darby still comply with the RSPO requirement for partial certification.


ASSESSMENT REPORT



2.0 ASSESSMENT PROCESS

2.1 Certification Body

PT Mutuagung Lestari

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

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

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

2.2 Assessment Team

2.2.1 Lead Assessor and Assessment Team

S-2 1. Taufik Margani (Lead Auditor). Bachelor of Science in Forestry, majoring in Forest Management. Specialist in Ecology and Environmental. He has led several audits for Sustainable Forest Management in Indonesia (under LEI- Indonesian Ecolabel Institute and FSC- Forest Stewardship Council) and he is a Lead Auditor for FSC chain of custody and Forest Management. Other experience: He is IRCA Lead auditor IRCA registered for Environment Management System and Quality Management System. Since 1999 he has been working for independent certification body and has conducted Environment Management System audits in Indonesia and Malaysia. Currently he is the General Manager of Management System Certification, for the second surveillance he Assessing the QMS, Environmental System. Social aspect, supply chain and conservation.

2. Ardianysah (Auditor). Indonesian citizen, Bachelor of Forest Resources Conservation, Department of Forestry, Bogor Agricultural University. He has involved activities such as preparation of EIA document and industrial wood plantations (HTI) and training such as awareness RSPO, Lead Auditor ISPO, awareness OHSAS, land cover crop mapping and Auditor/Lead auditor Management System Certification (ISO 9001-2008), He has several times following audit activities related to sustainable palm oil certification system as an auditor, , for the second surveillance he Assessing the Environmental System and conservation.

3. Isyana Dewi (Auditor). Bachelor of Public Health, Department of Occupational Safety and Health. Faculty of Public Health, University of Indonesia. She has experience working in oil palm plantation companies in Indonesia. Attended some training included awareness for RSPO certification system, and Integrated Management System certification (and OHSAS 18001:2007, ISO 14001:2004, ISO 9001:2008), for the second surveillance she Assessing Safety and health, worker welfare and discrimination

4. Muhammad Rinaldi (Auditor Trainee). Associate of Oil Palm Plantations, Bogor Agricultural Institute. He has 4 years experience working as a staff operational plantation at private oil palm plantation companies in Indonesia. He has attended the RSPO Awareness training and training Auditor ISPO. During this audit, he assigned to verify of Best Management Practices aspect.

2.3 Assessment Methodology, Assessment Process and Locations of Assessment

2.3.1 Figure of person days to implement assessment

S2 Number of auditors participating: 4 Auditors Number of days for S-2 at the site: 4 days Number of working days for S-2 at the site: 16 working days

2.3.2 Detail process of assessment

S-2 The Survailence-2 was conducted by measuring the sufficiency of implementation with the consistency done by the PT Bahari Gembira Ria (BGR) to the requirements of National Interpretation of the Republic of Indonesia from RSPO Principles and Criteria for Sustainable Palm Oil Production (RSPO INA-NIWG, May 2008 and Scheme Smallholders October 2009) and Supply Chain Requirement for CPO Mill.

The assessment was conducted in three methods: Methods I is document review, aiming to observe the sufficiency of types or substances from required documents; Methods II is interview, aiming to obtain more detailed information and cross check the information; dan Methods III is field observation, aiming to observe directly the sufficiency of implementation on site.

http://www.mutucertification.com/



ASSESSMENT REPORT

SPO – 4006a.5 Page 10


Some opportunities for improvement of the results Surveillance-2 delivered by the auditor MAL to the management unit and the results are the subject will be verified at the next assessment phase (Surveillance-3). All information obtained was recorded in Check List of PT Mutu agung Lestari (MUTU) and part of assessment report. Please find Appendix 2 for the assessment program.

2.3.3 Locations of Assessment

S-2 Scopes of Surveillance-2 are Ladang Panjang Mill and Ladang Panjang Estate. Audit team was using (0.6 √Y)

formulation to choose sample location, where Y is the number of estate within PT BGR. Number of sample in PT

BGR is 1 (one) estate, Ladang Panjang Estate. furthermore, to ensure the balance of information, auditor team

decides to visit local villages. The visited villages are Mingkung and Trimulya Jaya village. Trimulya and Mingkung

village are local villages that located near PT BGR and have bussiness cooperation with PT BGR. These villages

have “Village Cooperative”. The visited location consists of estate, mill and local village.

Ladang Panjang Estate

Location 1 - Block A009 Division I. Observation and interview with foreman and harvesting personnel regarding

work procedure/ work instruction, type of used PPE, facility that is provided by company, company’s policy regarding

the freedom to establish and join union and gender committee, socialization for HCV and first aid. As well as

conducting observation on peat subsidence and monitor water level. Field visits result shows that peat subsidence

occurs since the measurement tool being installed (2009) and continue until now (May 2014). Total subsidence is 4

cm.

Location 2 - Block A013 Division I. Observation and interview with foreman and fertilization personnel regarding

work procedure/ work instruction, type of used PPE, facility that is provided by company, company’s policy regarding

the freedom to establish and join union and gender committee, socialization for HCV, restriction for pregnant and

lactating female worker to work with fertilizer, first aid, medical examination and complaint mechanism. As well as

observation regarding holistic pest disease by using owl (tyto alba), which shows owl nests are well maintained and

being periodically monitored.

Location 3 – Block A007 Division I. Observation and interview with foreman and spraying personnel regarding

work procedure/ work instruction, type and provision of used PPE, first aid, work risk, periodic medical examination,

the availability of information board in ongoing spraying area, restriction for pregnant and lactating female worker to

spray, payment, housing facility, complain mechanism for gender issue and socialization for NKT area.

Location 4 – Block A001 Division I. Observation over holistic pest control by using Beneficial Plant such as Cassia

cobanensis, Antigonon leptopus and Turnera Subulata. Observation related to NKT 1.1 and 1.3, which based on

field visit, the NKT has been completed with poster, boundary stake area and buffer zone.

Location 5 - Block C026 Division III. Observation on transporting FFB and interview with loading personnel.

Interview points out that loading officers have understood the procedure for transporting FFB and PPE utilization.

Location 6 - Block C026 Division III. Observation on harvesting and interview with harvesting officer show that

harvesting officers have known the harvesting procedure. Harvesting personnel able to explain the criteria for ripe

fruit that may be harvested, such as there is minimum 5 natural fruit in disc area. Harvesting officers also known

other harvesting requirements such as fruit should be clean from waste, handle no more than 5 cm and not to

harvest raw fruit. In addition, harvesting officers know their responsibility to wear PPE, which has been provided by

company.

Location 7 - Block C031 Division III. Observation on OPT control. From field visit result; it’s known that company

has taken pest (rats) control by establishing nest box and breeding owl (tyto alba).

Location 8 - Block C029 Division III. Observation on plantation maintenance, such us fertilization activity. Field

observation and interview with fertilization foreman and officers point out that personnel have received training on

proper fertilization technic. For instance: calibration for throw fertilizer, proper fertilization throwing and the usage of


ASSESSMENT REPORT

SPO – 4006a.5 Page 11


PPE like safe boots, apron and mask. Personnel also known about the area that can be fertilized or not (buffer zone

and area surrounding water source/ water flow). Personnel received extra food on Saturday (milk) and on Thursday

(green nut soup). They also followed periodic medical examination every 6 months.

Location 9 - Block C035 and C030 Division III. Observation on plantation maintenance such as spraying activity.

Field visit and interview with spraying foreman and personnel show that personnel have understood work procedure

and instruction for spraying, they able to explain boundary of spraying (area that may be sprayed or not like buffer

zone and water source/ flow. Personnel always used PPE during working and washed PPE after their work is done.

Personnel receive extra food on Thursday (milk) and on Saturday (egg). They also followed periodic medical

examination every 6 months.

Location 10 – Monitoring well. Based on field visit, its known that there are 4 monitoring wells surround

application area; surround non-application area; and in personnel well.

Location 11 - Division III Block C030 Stake PT BGR 5. Observation on company’s boundary stakes. Based on

observation, boundary stakes condition are good and the word in stakes are clearly readable.





Location 14 - Division III Block C029. Observation over high conservation value (HCV) at riparian area of

Terentang river. Based on observation, the riparian area has been marked with buffer zone sign (yellow paint at

outside palm oil tree - 50 meters from river’s edge), cultivation of forest plantation at riparian area, there is a band

board to poison fish, cut trees and chemical application around riparian area.

Location 15 – Monitoring Well. Based on field visit, there are 4 monitoring wells such as at the application area;

surround non-application area and in personnel well.

Location 16 - Division III, Block C028. Observation over liquid waste for land application. Based on observation

and interview, its known that the application was conducted with weekly rotation and the application process is

monitored by special officer in order to avoid over application.

Location 17 Clinic LPE; interview with paramedics over the implementation of occupational health and safety, first

aid training, monitoring for menstrual pain leave and maternity leave, training, medical waste, medical examination

for personnel.

Location 2 Workshop; Observation and interview with head of workshop regarding first aid, emergency response,

HIRAC, hazardous waste, emergeny response system.

Location 18 Central Warehouse; chemical storage, observation over first aid box, emergeny response system

Location 19 BSS House; Observation over emergency response and first aid box

Location 20 Personnel housing; Artesian Well, emergency response facility

Location 21 Final Landfill

Ladang Panjang Mill

Location 1 Weigher: observe weighing process, the utilization of certified RSPO stamp.

Location 2 Mill’s warehouse: interview with warehouse personnel regarding the process in warehouse, payment,

occupational healt and safety implementation and HIRAC

Location 3 Chemical warehouse, temporary storage for hazardous waste

Location 4 Workshop; interview with Maintenance assistant and Maintenance foreman regarding occupational

health and safety issue like HIRAC, first aid, emergency response.

Location 5 Process in mill: interview with boiler and engine room operator regarding payment, worker union,

training that they have attended, medical examination, HIRAC as well as hydrant assessment and examination in

kernel station.

Location WTP: Proses in WTP including observe flow meter and WTP chemical material warehouse.


ASSESSMENT REPORT

SPO – 4006a.5 Page 12


Location IPAL: Observation over IPAL, interview with IPAL officer.

VILLAGE

Location 1 - Trimulya Jaya Village. Interview with village cooperative board “Karya Mandiri Cooperative”.

Regarding the partnership between PT BGR and plasma smallholder that has been started since 1996 and at

present have ben set 5 unit cooperative.

Location 2 – Mingkung Village. Interview with village cooperative board “Karya Mandiri Cooperative”. Regarding

the partnership between PT BGR and plasma smallholder that has been started since 1996 and at present have

ben set 5 unit cooperative.

2.4 Stakeholder Consultation and List of Stakeholders Contacted

2.4.1 Summary of stakeholder consultation process.

Stakeholder consultation of PT Bahari Gembira Ria was held by public consultation meeting with internal and external stakeholders by interviews and local stakeholders conducted by visits to villages and interviews with local peoples on 19 May 2014. Numbers of input from stakeholders were clarified by PT Bahari Gembira Ria. Numbers of inputs from stakeholders both positive and negative were received by the audit team as a material of consideration and observations in the first surveillance assessment. The consultation result present on 3.6 (Summary of Arising Issues from Public, Management and Auditor Response)

2.4.2 List of stakeholder contacted

Please find appendix 1

2.5 Determining Next Visiting

The next visit Surveillance-3 will be planned between April to June 2015.


ASSESSMENT REPORT

SPO – 4006a.5 Page 13


3.0 ASSESSMENT RESULT

3.1 Summary of Assessment Report of the RSPO Certification MUTUAGUNG LESTARI has conducted an assessment of Ladang Panjang Factory - PT Bahari Gembira Ria, Sime

Darby Sdn Bhd operation consisting of 1 (one) factory and 1 (one) oil palm estates.

During the S-2 assessment, there were three (3) Nonconformities were assigned against Major Compliance Indicator;

two (2) Nonconformities were assigned against Minor Compliance Indicator and one (1) opportunities for

improvement were identified.

Further explanation of the non-conformities raised and corrective actions taken by the company are provided in

section 3.5. The company prepared and implemented corrective action that was reviewed and accepted by MUTU in

form of documents and photographic evidence. Those corrective actions taken that consist of three (3) major

Nonconformity and two (2) Minor non-conformity had been closed out shall be verified during next assessment.

MUTUAGUNG LESTARI found that Ladang Panjang Factory - PT Bahari Gembira Ria comply with the requirements

of RSPO Principles & Criteria and National Interpretation, RSPO Principles and Criteria (P&C) for Sustainable Palm

Oil Production, Republic of Indonesia - RSPO INA-NIWG, May 2008 . Therefore MUTUAGUNG LESTARI

Recommends RSPO Certification of compliance is continued.

Ref Std. VERIFICATION RESULT of MUTU-Certification

PRINCIPLE #1 COMMITMENT TO TRANSPARENCY

1.1 Plantation and Palm Oil Factory have to give adequate information for stakeholders in appropriate language and forms, to ensure the effective participation of stakeholders in decision-making.

PT BGR has a logbook for letter in and out to record letters about information request and complaint letter from community and personnel. PT BGR received information requests, such as: 1. Letter No. 525/173/UTP/Dishutbun/2014 on 07th February 2014 from head of forestry and plantation agency regarding the

explanation over plantation business permit. Some response samples over information request, such as: 1. Letter No. 277/BGR-UM/IX/2012 regarding ownership report over loading tank, which is a response letter for PT. Bahari

Gembira Ria’s loading tank owner data request from plantation agency of Jambi province, letter No: UND-4651/DISBUN-5.3/VIII/2012 on 30th August 2012.

2. Letter No. 20/BGR-PJK/I/2014 regarding PPh deduction, article 23, which is a response letter over report for PPh deduction, article 23 on 1st October 2013. Letter No. S-973/WJP.27/KP.0103/2013.

PT Bahari Gembira Ria has SOP for document’s control (SPO/P&C) No. SOP/002/BGR/2012 on 01st November 2012, Part 6 sub E, which regulates the applicable date and document’s removal that based on need, for instance: 1. Records over audit assessment’s requirement - 5 (five) years. 2. Reference’s requirement – 10 years 3. Government’s law – until there is a revision. 4. Subscription request - 1 year. 5. Company’s policy - until there is a revision. 6. Land compensation record - unlimited. 7. Evaluation over law’s obedience/ regulation – 6 months

Status: Full Compliance


ASSESSMENT REPORT

SPO – 4006a.5 Page 14


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

Type of information that can be released for public is stated in memorandum from Ladang Panjang Estate manager on 31st May 2013. Document that can be accessed by public, such as: 1. Legal documents (location permit, plantation business permit, business license certificate) 2. Environment and social document (Environment impact analysis, environment management and monitoring report, SEIA) 3. Occupational health and safety document (policy and SOP) 4. Sustainable improvement plan

PT Bahari Gembira Ria has SOP for record management (SPO/P&C) No SOP/002/BGR/2012 on 1st November 2012, in part 6 sub E, which regulates the validity and record removal that based on need, for instance: 1. Records over audit assessment’s requirement - 5 (five) years. 2. Reference’s requirement – 10 years 3. Government’s law – until there is a revision 4. Subscription request - 1 year. 5. Company’s policy - until there is a revision 6. Land compensation record – unlimited 7. Evaluation over law’s obedience/ regulation – 6 months


PRINCIPLE #2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

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

Company has a commitment to comply occupational health and safety related. For instance: 1. Permenakertranskop No. 01 in 1976 regarding mandatory hyperkes training for company’s physician.

Hiperkes certificate on behalf of dr. Waluyo, certificate No. 24.275/DH-XVII/08 in December 2009 that issued by Perhimpunan Dokter Kesehatan Kerja Indonesia (IDKI) Batam branch with occupational health and safety center.

2. Ministry of manpower regulation No. 01 in 1988 regarding qualification and requirement for steam engine operator a. LPF

Name License/Certificate Expiration Date Operator

Nuzirwan 12.P.08.970 OPK3-PUBT-B.I/XI/2012

30th November 2017

P. Uap (Boiler)

Achmad Maryadi

12.P.09.966 OPK3-PUBT-B.I/XI/2012

30th November 2017

P. Uap (Boiler)

Deny Kurniawan

12.P.06.390 OPK3-PUBT-B.I/XI/2012

30th November 2017

P. Uap (Boiler)

Bolon Aryadi Ritonga

12.P.06.386 OPK3-PUBT-B.I/XI/2012

30th November 2017

P. Uap (Boiler)

3. Ministry of manpower regulation No. 09 in 2010 regarding operator and driver of Wheel Loader and transporter Operator

a. Company has 5 Wheel Loader and transporter operator. Among others:



ASSESSMENT REPORT

SPO – 4006a.5 Page 15


Wasis Budi Utomo 14.34393-OPK3-PAA/IV/2014 12 April 2019 Wheel Loader

Mas’ur 14.34397-OPK3-PAA/IV/2014 12 April 2019 Backhoe Loader

Mulyadi 14.34396-OPK3-PAA/IV/2014 12 April 2019 Greader

Agus Darmono 14.34395-OPK3-PAA/IV/2014 12 April 2019 Compactor

Adi Sasmito 14.34394-OPK3-PAA/IV/2014 12 April 2019 Excavator

4. Ministry of manpower regulation no. 02 in 1982 regarding welder’s qualification in work place. a. LPF


Arip Sugianto Certificate No. t.01/ILMTA.3/Sert-Las/IV/2007

April 2007 Welder

Rohadi Certificate No.127/X/K3/Las/2012 April 2012 Welder

5. Has environment document such as AMDAL for the entire management area. 6. Conducting environment management and monitoring that inline with the approved AMDAL document.

But there are some requirements and regulations that are not fulfilled yet, such as Permenaker No.03 in 1986 regarding the occupational health and safety requirements in pesticide warehouse. Based on interview with spraying personnel in division I LPE, the PPE, work uniform is stored in personnel’s house. Non-compliance NCR.2014.01 with major category. Observation on 3rd July 2014. Root cause: BGR Not yet has special place to storage the PPE and Work Clothing of worker which dealing with pesticide at Division I, LPE. Currative actions: BGR has constructed special place (BSS house) to storage the PPE and Work Clothing in division 1 and 2. Preventive actions: Socialization the BSS houses that already available so employees from Division I & II saving their PPE and work Clothing in these warehouses. Auditor’s conclusion: Auditor can accept company’s evidence. Non-compliance NCR.2014.01 is closed There is a matrix for compliance evaluation toward the applicable regulation, which informs the required regulation, article/ requirement, compliance, compliance evidance, and actions. However, there are some regulations that are not stated on this list such as PP No 27 in 2012, PP No. 50 in 2012, and PerMenLH No. 14 in 2013. Non-compliance NCR.2014.02 with minor category. Observation on 3rd July 2014. Root cause: BGR Not yet updated to list of law/ regulation Corrective action: BGR Updating the latest regulation into list of law Preventive actions: actively seek latest regulation, which related to plantation activity. Auditor conclusion: The presented evidence can be accepted and fulfilled the requirement. Non-compliance NCR.2014.02 is closed

Major 2.1.1 Minor 2.1.1

Status: Major non-compliance NCR.2014.01 is closed Status: Minor non-compliance NCR.2014.02 is closed

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


ASSESSMENT REPORT

SPO – 4006a.5 Page 16


BGR has the right to own and use the area. Evidence for this, such as: 1. Ministry of forestry decision No. 73/Kpts-II/1996, on 27th February 1996 regarding some forest area’s release, which

located in S. Parit forest group – S. Kumpen, Batanghari district, Jambi province. The broad of released area is 14.349 (fourteen thousand three hundred and forty nine) Hectare for palm oil plantation with transmigration PIR scheme on behalf of PT. Bahari Gembira Ria.

2. Location permit for palm oil plantation, which based on Muara Jambi reagent’s decision number 4 in 2000, broad is 1.350 Ha, on 29th March 2000.

3. HGU certificate No. 4 in 2003, broad 1.202,04 Ha in Ladang Panjang village, that valid until 06th May 2038, which was issued on 06th May 2003 by head of land agency Muaro Jambi district.

4. Issuance of HGU certificate for PT BGR is under process, for an area of 2.178,16 Ha. National land agency of Jambi province issued the map for land/area measurement in 2007. The HGU certificate issuance is still waiting the decision from National land agency of Jambi province (BPN).

5. BGR has submited HGU request on behalf of PT BGR to head of BPN in Jambi province through a letter No. 218/BGR/UM/PSD/IX/13 on 9th September 2013 for an 2.178,06 Ha area. Delivery receipt is available for BGR HGU request letter to BPN Jambi province on 12 Sept 2013, which was accepted by Salamun (officer from BPN Jambi province).

6. There is a letter from BPN to PT BGR No. 1022/15-300.9/X/2013 on 4th October 2013 regarding the HGU request on behalf of PT BGR in Muaro Jambi district. This letter is an answer for PT BGR’s previous letter, which explains requirement that should be complied by PT BGR.

7. BGR has sent a letter to BPN Jambi province, No. 071/BGR/UM/PSD/III/2014 on 05th March 2014 regarding the information on HGU request compliance for an area + 2.178,16 Ha.

8. Information letter number: 100/25/GJ-SG/V/2014 on 09th May 2014 from head of Gambut Jaya village regarding the approval over additional HGU permit for PT BGR, which located in Gambut Jaya village, Sungai Gelam sub district, Muaro Jambi district, with an area 296,1 Ha.

9. Information letter number: 474/67/AA-KU/IV/2014 on 25th April 2014 from head of Arang-arang village, Kumpeh Ulu sub district, Muaro Jambi district regarding the support to issue HGU for PT BGR, which located in Arang-Arang village, Kumpeh Ulu sub district, Muaro Jambi district.

10. Information letter number: 474//PR-SG/IV/2014 on 22nd April 2014 from head of Parit village, Sungai Gelam sub district, Muaro Jambi district regarding the support to issue HGU for PT BGR, which located in Parit village, Sungai Gelam sub district, Muaro Jambi district.

11. Decision letter from head of integrated service of Muaro Jambi district number 503/02/BPTSP/2014 on 30th January 2014 regarding the “granted/ issuance of plantation business permit for PT. Bahari Gembira Ria in Mestong sub district, Sungai Gela sub district, Kumpeh Ulu sub district, Muaro Jambi district” which decides to grant the permit for palm oil plantation business permit over an area of ±3.382,04 Ha (consist of HGU over ±1.202,04 Ha and Cadastral ±2.180 Ha) and palm oil mill’s capacity is 45 ton FFB/Hour, which located in Ladang Panjang village, Parit village, Arang-arang village, Sumber Agung village and Sungai Gelam village.

Based on land map in 2001, which issued by BPN of Jambi province, there are 10 stakes in Division 3 (HGU certificate No. 4 in 2000) and based on land map in 2007, which issued by BPN of Jambi province, there are 20 stakes in Division 1 and 6 stakes in Division 2 (HGU certificate is under issuance process). BGR conducting periodic monitoring over HGU maintenance stake in Ladang Panjang Estate one in a month. Based on monitoring in May 2014. The entire stakes were in a good condition. Field visit at HGU stake No. 05 Division III Block C030; HGU stake No. 07 Division III Block C038 and HGU stake No. 09 Division III Block C041 show that stakes condition were in good condition and well maintained (physically, paint and mark were readable). There is no additional area on BGR current plantation area, which is 3.031,63 Ha with 2.874,34 Ha are has been planted with palm oil vegetation. Based on document’s review, interview with institution and interview with community, its known that there is no area conflict within PT BGR nucleus plantation area.



ASSESSMENT REPORT

SPO – 4006a.5 Page 17


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

Based on Areal Statement and map, PT Bahari Gembira Ria report on High Conservation Value Area identification document in 2010, its known that there is no traditional right within PT Bahari Gembira Ria plantation area. There is also a letter from head of Ladang Panjang village number 141/12/LP-2010 on 02nd August 2010, regarding the existence of traditional right. This letter mentions that within BGR plantation area there is no traditional right. In addition, PT Bahari Gembira Ria has a record over public consultation on High Conservation Value Area (HCVA) identification activity – Jambi Province, on 9th May 2011. Areal Statement map and the spreading of HCV (high conservation value) map inform the spread of land usage within PT BGR plantation area, such as: plantation area, facility and infrastructure, and other uses. Based on those maps, there is no area under traditional right.


PRINCIPLE #3 Commitment to long-term economic and financial viability

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

PT Bahari Gembira Ria able to present short term plan document, such as budget presentation for period 2014 -2015 & 3 year a head projection document, which informs company’s activity in detail, both for mill and estate. Estate’s budget such as informs the current cultivated area, the area that has possibility to be cultivated, plantation population, FFB production, fertilization, capitalization and manpower. Mill’s budget includes FFB’s acceptance, CPO production and kernel oil and manpower. PT Bahari Gembira Ria is considering carrying out replanting activity on peat area earlier that the first plan for replanting program. Company has a replanting plan that will be executed in 2016-2017 in a form of Long Range New Planting Program. First replanting will be conducted at block with planted year 1997 in Division II Ladang Panjang for 211,08 hectare. Replanting location selection is based on some consideration, such as: productivity, the age of plantation and height of palm oil tree.


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

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

PT Bahari Gembira Ria has a procedure related to mill and estate management, such as:

SOP for Agronomic manual reference over palm oil cultivation No. Policy; 110/EST-ARM/13, which consists of 18 chapters/parts about palm oil cultivation technic based on memorandum from Head of plantation Upstream Indonesia on 01st September 2013

SOP for palm oil management system, which stated in palm oil mill’s technic guideline that consists of 3 chapters. First chapter with No. Policy 110/POD-FAC/07, second chapter with No. Policy 120/POD-FAC/07 and third chapter with No. Policy 130/POD-FAC/07. The entire SOP for palm oil mill’s technic is endorsed by Group Head Plantation Indonesia in 2007.

PT Bahari Gembira Ria has conducted evaluation on operation activity at least one in a year. The latest evaluation. For instance: 1. Ladang Panjang Estate:

- Sundian Nadaraj drafted the Plantation Advisory Report Ref No. MINAMAS/LPE/01/12-13 on 04-07th September 2013.

- Rinno Ferryno drafted Summary Report ESH Assessment for Estate on 28th February 2014 by (ESH Manager). - Work sheet for financial audit period Semester I 2013/2014 on 25th November – 06th December 2013.


ASSESSMENT REPORT

SPO – 4006a.5 Page 18


2. Ladang Panjang Mill:

- Rinno Ferryno (ESH Manager) conducted the summary Report ESH Assessment for Mill on 28th February 2014 by. - Mill Advisory Report mill was conducted by Lee Kim Tiak, evaluation date was on 16-17th July 2013

The entire PT Bahari Gembira Ria operation activity is recorded in Monthly Report both for estate and mill. Latest Monthly Report in April 2014 consists about: 1. Monthly Report for Ladang Panjang mill, which covers comments from manager, FFB’s acceptance, production data,

quality & production lost, production cost, personnel and housing, cost recapitulation and budget. 2. Ladang Panjang plantation unit report for operation activity record, such as consists of areal statement, organization

structure, number of manpower and liability, building/ infrastructure data, FFB’s production data, data over rainfall rate, data of productive plantation, bursary data, production cost, capital etc. as well as comments from manager regarding problems or issues in estate.


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

PT Bahari Gembira Ria is conducting leaf analysis every year and soil analysis such as semi detail soil survey and soil analysis in land application area. The latest soil and leaf analysis were conducted in 2013. Based on analysis result, MRC recommends special treatment in order to sustain soil fertility. There are records of activity (activity for increasing and sustaining soil fertility), such as:

- There is a program and organic fertilization implementation (empty fruit bunches) PT. BGR until April 2014. In 2014, its planned to conduct empty fruit bunches fertilization for 848,70 Ha area with 32.251 ton total empty fruit bunches that had been implemented in April 2014 amount 515,40 Ha with 19.473,41 ton total empty fruit bunches. There is an evaluation from management over block with organic fertilization (empty fruit bunches), which explains bunches’ budget in 2014, bunches realization until April 2014, BJR realization and budget as well as Budget and realization Kg/Ha states that average ton/ha at block is above the budget, and soil condition become fertile and BJR is increase.

- Monthly report for liquid waste in April 2014, which explains the number (total volume) of liquid waste application is 5.891,82 M3 with application broad 47,13 Ha. There is an evaluation from management at block with liquid waste application (POME) which explains bunches budget in 2014, bunches realization until April 2014, BJR realization and budget as well as Budget and realization Kg/Ha states that average ton/ha at block is above the budget, and soil condition become fertile and BJR is increase.

- Realization and inorganic fertilization program in April 2014 in Ladang panjang Estate (LPE). For instance, fertilization in LPE Div II Block B018 with CCM fertilization type: plan 22.826 Kg for an area of 78,64 Ha and doze per tree is 2,25 kg/tree; realization in April 2014 amount 22.826 Kg in an area of 78,64 Ha.

Based on field visit and interview with personnel, POME application, empty fruit bunches and inorganic fertilization have been inline with the existing SOP in PT.BGR.


4.3 Practices minimize and control erosion and degradation of soils.

Based on document’s review and field visit, its known that PT BGR has an area with marginal soil like peat area. PT Bahari Gembira Ria has conducted survey on depth of peat, which conducted by MRC on 12 Dec – 16 Dec 2011. Based on study analysis, it’s known that 41 % (1.156,15 Ha) of area is mineral soil and 59% (1.697,65 Ha) is peat soil. There is an area’s map, which presents the spread of mineral soil and peat soil. The entire peat soils spreading in division I, and II. In order to minimize and control the erosion, company has conducting regular maintenance over road. Road maintenance over peat area (division I and division II) such as canal wash. There is a realization data over anal wash, for instance in April 2014 Division II block 15, main canal washing plan (KUT): 4.200 Meter; supporting canal washing plan (Kcb): 1600 Meter and has


ASSESSMENT REPORT

SPO – 4006a.5 Page 19


ben realized for main canal: 3700 meter. Meanwhile for road maintenance on mineral soil such as road pavement and road maintenance by using road grader, for instance Division III, Block C032: Program 2.480 meter; realization in April 2014 amount 2.480 meter. PT Bahari Gembira Ria management for peat area is through:

Water management such as trench with water gate. For division I there are 2 water gates and for division II, there are 5 water gates in April 2014.

Trench wash, which planned to be conducted every month.

Regular yardstick’s (water level) measurement (one in a week). There are 5 yard stick in division I, and 5 stick in division II. Daily monitoring for instance measurement on 4th April 2014 at division II block B016 height: 49 Cm; at division I block A014 on 15th April 2014 height 10 cm below surface water.

Monthly pizzo meter measurement. Division II has 40 Pizzo Meters and for division I have 22 Pizzo meters. Monitoring result in April 2014 at block B17 with height 29 Cm.

Based on interview with management regarding annual peat subsidence measurement. Division II has 1 subsidence stake and division I has 2 subsidence stakes. Data over peat subsidence monitoring in Division I and Division II in January 201, such as:

NO Block First installation date

First thickness (M)

This month thickness (M)

Declining for this month (M)

1 A004 January 2012 4,66 4,66 0,04

2 A009 January 2012 10,28 10,24 0,04

3 A015 January 2012 5,86 5,82 0,04

Based on field visit, peat management has been inline with procedure and pizzo meter monitoring, yardstick, periodic subsidence stake.


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

PT Bahari Gembira Ria has a policy to avoid chemical contamination (pesticide and fertilization) in buffer zone and water flow (for instance trench) by not undertaking pesticide spraying activity and fertilization within this area. To maintain proficiency and quality of surface water and soil water, PT Bahari Gembira Ria has conducting:

Maintain natural condition near riparian area.

Ban board installation about restriction to poison fish and cut trees in buffer zone, like in Division III, Block C025, and Block C029 and in division I block A02.

Marking the buffer zone area. Based on field visit in Terentang River, Block C029, Division III, LPE, there are prohibition marks for spraying activity on the tree, such as yellow paint in tree.

Manual maintenance over pakis vegetation on right and left side of canal.

Utilizing liquid waste on area application and not throwing liquid waste to river.

Socialization on chemical restriction for riparian area, which is delivered on morning briefing. Based on interview with spraying personnel at Block C035 and C030 Division III, its known that personnel have understood spraying work instruction and procedure, they can explain spraying boundary (area that may be applied with chemical material and may not, like buffer zone and water source/flow).

Regular monitoring over Terentang River’s quality in BGR (every 6 months). Based on monitoring result on 17th May 2013, it’s known that the quality of rivers’ water complies the applicable standard quality, which based on Jambi governor’s regulation No 20 in 2007 class II. Samples of monitoring result: BOD= 3 mg/L; Pb= <0,02 mg/L; NO3= 0,030 mg/L.

Monitoring over well water’s quality at monitoring well and personnel’s well. Based on monitoring result in March 2014 in Air Merah housing well, its known that the quality of soil water complies the applicable standard quality, which based on ministry of health regulation No 416 in 1990. Samples of monitoring result: TDS= 92 mg/L; Fe= 0,74 mg/L; pH= 7,73 mg/L.


ASSESSMENT REPORT

SPO – 4006a.5 Page 20


PT Bahari Gembira Ria has conducted monitoring over liquid waste BOD, which is regularly applied to land (every month). There is a monthly monitoring report for liquid waste BOD, for instance:

Parameter Unit months Standard quality

Dec 2013 Jan 2014 Feb 2014

BOD mg/l 240 1.446 322 5.000

Standard quality: ministry of environment decision, No 29 in 2003. UPTB Laboratorium Lingkungan Daerah, environment agency of Jambi province conducted the evaluation on waste quality. PT Bahari Gembira Ria has conducted monitoring over water utilization. For instance monitoring for period 2013 – 2014:

January 2014: water utilization = 10.812,71 M3; processed FFB = 7.304 Ton; water utilization per Ton FFB = 1,4 M3/ton FFB; budget = 1,4 M3/ton TBS.

April 2014: water utilization = 16.180 M3; processed FFB = 11.784 Ton; water utilization per Ton FFB = 1,37 M3/ton FFB; budget = 1,4 M3/ton TBS.


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

PT.BGR has a holistic pest control that stated in SOP for agronomic manual reference for palm oil cultivation No. Policy; 110/EST-ARM/13 on 01st September 2013 on chapter 15 regarding plantation protection, which explain: 1. Horn beetle in young palm oil plantation 2. Chemical management for palm oil’s general pest 3. Pocket and fire caterpillar management 4. Utilization of beneficial plant to control leaf pest naturally 5. Rats management on palm oil plantation 6. Management for Ganoderma pest 7. Best practices certification to minimize inoculum ganoderma on replanting plantation 8. The utilization of mushroom Arbusculae mycorrhizal to control ganoderma Plantation pest and disease control in PT. BGR is monitored and recorded in pest and disease monthly monitoring and control. For instance in April 2014:

1. Census result for some pests and diseases in division I, II and III. For instance: - Census over terminates attack at division II in April 2014 with new attack amount 101 trees and has been

controlled with agenda insecticide amount 0,59 L. - Monitoring over Oryctes rhinoceros attack in Ladang Panjang Estate shows there is no attack at the entire division. - Pocket caterpillar census recapitulation form at division I shows no attack for an area of 23 ha, number of

caterpillars is 15 caterpillars/midrib for 237,8 Ha of census area. - Ganoderma attack census recapitulation in Ladang Panjang Estate shows that there is no attack on the entire

division. 2. Monitoring over owl breeding in Ladang Panjang Estate with number of nest box is 66 units (54 owl, 22 flying owlet,

36 owlet and 52 eggs) for 2.853,84 Ha areas or 43,24 ha per nest box. 3. Recapitulation over beneficial plant cultivation realization until April 2014 in Ladang Panjang Estate with total:

- Cassia cobanensis cultivation along 5.365 meter. - Antigone leptopus cultivation along 3.743 meter. - Turnera Subulata cultivation along 2.801 meter.

In order to effectively increase pest and disease control, PT.BGR conducting training on PHT like pocket caterpillar management training for personnel on 23rd April 2014, attended by 14 personnel, training on ganoderma disease on 24 April 2014, which attended by 15 personnel. In addition, PT. BGR also conducting monitoring over used pesticide toxicity, including type of pesticide, material utilization and monthly used active material.


ASSESSMENT REPORT

SPO – 4006a.5 Page 21



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

Company has agrochemical material, which has distribution license from pesticide committee, such as:

No Brand Type of active material

Registration number in KOMPES

1 Prima Up Glyphosate RI 01030120031779

2 Meta Prima 20 WG Metil Metsulfuron

3 Kenlon 480 EC Triklopir, etil ester RI. 01030120662433

4 Agenda 25EC Fipronil

5 Lancer Asefat

6 Starane Fluroksipir RI.854/7-2009/T

7. Decis Deltametrin RI 0101011979387

8 Ratgon Brodifacum RI 07120120062535

PT. BGR not able to present valid distribution licensed for agrochemical, which categorized as Meta Prima, Agenda and Lancer. Non-compliance, refers to CAR No. 2014.03 Observation on 3rd July 2014. Root cause: Distribution permit for some agrochemical is already expired. Corrective action: BGR has presented the distribution permit for some agro chemical type, like Meta Prima (RI.01030120081897); Agenda (RI.04110119971366); Lancer (RI.01010120041979) Preventive actions: Conducting coordination with Purchasing Jakarta and agrochemical supplier. Auditor conclusion: The presented evidence can be accepted and fulfilled the requirement. Non-compliance NCR.2014.03 is closed Based on field visit, company has rodenticide Ratgon stock with an active brodifakum material, which categorized as chemical material type 1A WHO but PT. BGR has not used rodenticide anymore. Based on document’s review over estate unit’s monthly report in April 2014, Rodenticide Ratgon not been used in 2014, which can be proved at fertilizer stock table, pesticide, nut and polybag (in January, Ratgon stock is 215 kg and in April 2014 stock still 215 Kg. beside that, PT. BGR has tried to control rat’s pest by using natural predator (tyto alba). Company has carried out chemical material application, like pesticide and insecticide that inline with targeted species with appropriate dose and been monthly recorded at pesticide utilization record. For instance pesticide utilization record at Division I in April 2014:

No Type of active material

Brand Unit Total Application/ Ha

Material utilization/ha

Active material/ha

1 Glyphosate Prima Up Ltr 3 30,4 0,09 0,04

2 Metil Metsulfuron

Meta Prima 20 WG

Gram 1.250 100 12,50 3.1250

3 Triklopir, etil ester

Kenlon 486 Ltr 85 196,7 0,43 0,21

4 Fipronil 25 Agenda Ltr 2 35,1 0,04 0,02

PT BGR has MSDS (Material Safety Data Sheet) document for used chemical material like Starane 200EC, Kenlon, Agenda


ASSESSMENT REPORT

SPO – 4006a.5 Page 22


25 EC, Meta Prima 20 WG, Ratgon, Prima Up, Decis and Lancer. MSDS explains product identity, physical and chemical information, medical hazard information, and first aid guidelines for poisoning case, safety instruction and utilization instruction. For used pesticide package waste management, used pesticide packages from spraying activity in estate will be cleaned, and send to temporary hazardous waste landfill in Ladang Panjang mill, which completed with minutes of hand over. Furthermore, used pesticide package will be sold to hazardous waste collector. PT. BGR has minutes of hazardous waste handover from estate to hazardous waste landfill on 12-05-2014 with number of kenlon used package is 15 packages, Meta Prima 20 pcs, Prima Up 4 pcs, Starane 35 pcs and manifest to hazardous waste collector (PT. Dame Alam Sejahtera) on 19th March 2014 with manifest number 0000532, that explains the transportation for contaminated packages amount 61 sacks. PT. BGR not able to present evidence that hazardous waste collector (PT. Dame Alam Sejahtera) has a licensed from related agency especially for used pesticide packages. Non-compliance, refers to CAR No. 2014.04 Observation on 3rd July 2014. Root cause: BGR has not yet show PT DAS permit letter for colecting hazardous waste.

Corrective action: BGR has proved that PT DAS has had the recommendation for transporting hazardous waste including the contaminated used pesticide package from ministry of environment that inline with letter No. B-11185/Dep.IV/LH/PDAL/10/2013 on 8th October 2013.

Preventive actions: Conducting coordination with collector regarding the permit issue.

Auditor conclusion: The presented evidence can be accepted and fulfilled the requirement. Non-compliance NCR.2014.04 is Closed There is a policy for reproduction right (for female workers) on 09th May 2013, which consists of:

1. H1 leave, which must be examined in clinic by physician and nurse. H1 leave will be granted based on physician or nurse examination.

2. Medical officer counts H2 leave based on H1 leave grant. Procedures for H2 grant are: - Pregnancy age is 7.5 months for 1.5 months - After labor 1.5 months - Miscarriage will entitle for 1.5 months after miscarriage

3. For pregnant female worker For pregnant worker condition that inline with the applicable regulation and endorsed by physician or nurse examination, can’t work with chemical material, for instance: spraying and fertilizing.

4. For female worker who just laboring or lactating for 6 months is forbidden to work with chemical material, for instance spraying and fertilizing. After 6 months of lactating, this personal will take further medical examination to ensure whether she still needs to lactate her baby or not. This medial examination result will become a basis to decide whether she can work with chemical material or not.

5. Female worker should be protected from sexual harassment and domestic violence. Head of SOU 20 signed the policy for female worker sexual protection.

There is neither pregnant nor lactating spraying/ fertilization worker being recorded in medical letter from clinic paramedic, for instance:

1. Examination for maintenance personnel on 6th May 2014 shows that there is personal that still lactating. This personal has been mutated to manual maintenance work.

2. Examination for maintenance personnel on 6th May 2014 shows that there is personal that still lactating. This personal has been mutated to manual maintenance work

Based on interview with spraying and fertilization personnel in division I LPE at block A. 007 and A.013, there is neither pregnant nor lactating female worker that works in spraying and fertilization team. Auditor conclusion:


ASSESSMENT REPORT

SPO – 4006a.5 Page 23


Based on document’s review and interview, it can be summarized that there is neither pregnant nor lactating worker in spraying and fertilization team.

Major 4.6.1 Major 4.6.4

Status: Major Non-compliance NCR.2014.03 is Closed Status: Major Non-compliance NCR.2014.04 is Closed

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

In PA. CEO of Minamas Plantation endorsed occupational health and safety policy on 5th July 2008. During S1 there is occupational health and safety policy that stated in sustainable plantation management guideline, which drafted on 27 th August 2010 and endorsed by CEO of Minamas. This policy contains Plantation Upstream Indonesia commitment toward occupational health and safety improvement for the entire personnel/ staff, contractor and guest through the effective occupational health and safety management, which emphasis things like below:

1. Formulating, setting and conducting occupational health and safety system. 2. Staffs/ personnel are trained based on their competency and skill 3. Implementing law, government regulation and Plantation Upstream Indonesia’s regulation regarding occupational

health and safety as well as code of conduct. 4. Gradually improve occupational health and safety performance

Occupational health and safety program is documented in occupational health and safety matrix program & environment protection (K3LL) for period: July 2013 to June 2014, which informs: program description, implementer, implementation duration, and duration procedure for implementation. There is an evidence that this program has been implemented inline with duration, for instance:

1. Updating P2K3 structure 2. K3L meeting program, such as: personnel safety briefing, P2K3 meeting, guest & contractor safety Briefing 3. Inspection/ evaluation over K3L tools such as APAR & Hydrant check list, first aid box check list 4. Environment and hazardous waste control 5. K3L record and report 6. Control and issue on work permit.

Record over PT. BGR mill’s occupational health and safety program implementation, for instance: 1. Decision letter from head of manpower agency in Muaro Jambi district number: Kep.566/37/Sosnakertrans regarding

the endorsement of PT. BGR’s P2K3 and emergency response team in Ladang Panjang, which set on 06th March 2014

2. Minutes of P2K3 meeting on 18th February 2014. Meeting subject such as work discipline, PPE etc. participant consists of 16 members of P2K3

3. Record for first aid box inventory in mill’s area, for instance 1 unit capital office, 1 unit laboratory, 1 unit security post, 1 unit workshop and 1 unit processing office.

4. Record over hydrant inventory list shows there are 6 spots, such as threshing & pressing, clarification, boiler, kernel dispatch, powerhouse and personnel housing.

5. Record over APAR inventory list shows there are 36 units APAR, which being monitored every month. Record for LPE occupational health and safety program implementation, such as:

1. Decision letter from Muaro Jambi district number: Kep.566/42/Sosnakertrans regarding the P2K3 endorsement and emergency response team in PT. BGR Ladang Panjang estate, which was issued on 16th May 2013

2. Record for P2K3 report in Triwulan I LPE for period January - March 2014 consists of P2K3 report, P2K3 organ gram, recapitulation over work accident’s report, recommendation from P2K3 for company, safety tool’s evaluation report.

3. Dr. Waluyo recorded first aid training on 09th May 2014, which attended by 13 participants that consist of mechanic, harvesting clerk, foreman, assistant and manager. Attendance sheet and photos of training activity are available.

4. Inventory record for first aid box in plantation area such as 1 unit central warehouse, 1 unit workshop, 1 unit TPA, 1 unit capital office, 1 unit guest dormitory and 1 unit kindergarten. In addition, there are 31 units of first aid box being handed to foreman.

5. Record over hydrant inventory list shows there are 6 spots, such as threshing & pressing, clarification, boiler, kernel dispatch, powerhouse and personnel housing.

6. Record over APAR inventory list shows there are 42 units APAR, which being monitored every month


ASSESSMENT REPORT

SPO – 4006a.5 Page 24


P2K3 secretary is an expert on occupational health and safety. Decision letter to point occupational health and safety expert from ministry of manpower and transmigration of Republic of Indonesia. For instance: LPE P2K3 secretary on behalf of Muhammad Roni, S.So. Certificate number 2033/PK3/AJ/15/2012/PO. LPF general occupational health and safety expert on behalf of Panahatan Sitorus with Registration number 5234/PK3/AJ/31/2013/PO. Meeting to discuss occupational health and safety is conducted every month. For instance:

1. LPE. PSK3 secretary drafted P2K3 monthly meeting record, which stated in minutes of meeting document in March 2014 and endorsed by head of P2K3 on 20th March 2014. 15 people attended this meeting. This meeting discussed the importance of medical examination and socialization for personnel’s medical examination.

2. LPF. There are minutes of P2K3 monthly meeting, which stated in monthly meeting minutes on 14th March 2014. Meeting was conducted in KKP 2 meeting room and attended by 16 participants. This meeting discussed the occupational health and safety implementation in March 2014, for instance discipline on PPE utilization in every work activity.

Risk analysis record for occupational health and safety program or HIRAC is available. Risk control will be conducted and updated if there is a change on process and periodically being reviewed to review risk impact conformity that might be rose on work stage. Monitoring over work accident has been conducted in LPE and LPF for period July 2013 to June 2014, but the monitoring result shows that there is no work accident. Field observation: - APAR in mill’s location, LPE central warehouse, LPE workshop, Clinic, housing have been well monitored in accordance with APAR monitoring procedure (every month) - First aid box in mill’s location, dormitory, LPE workshop office, central warehouse and foreman first aid bag have been well monitored. Auditor conclusion: Based on document’s review and field observation, company has implemented the occupational health and safety.


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

Training calendar for Minamas Plantation period 2013-2014. Matrix explains expansion area, training title, objectives, number of personnel, number of class, vendor and implementation month. There are 10 types of training from 6-planned expansion area, which conducted internally and externally. The training calendar is for minamas personnel and training for smallholder. Field visit shows that Bina Tani conducted socialization on harvesting technic, 3 times in a month. Company has a commitment to hire well-trained contractor. Evidence that company hired well-trained contractor, for instance: LPF. Labor agreement No.074/PT.BGR-LPF/SPK-LKL/XII/2013 between BGR with Zulkifli CV. Lestari Pasada Mandiri regarding loading work and hose installation on Super heater Boiler Advance No.2, which required certified welder for his/her work and can be proved with welder certificate from manpower and transmigration agency No. S. 524/JL/PNK3/X/2008 on behalf of Yulfi Hendra, welder 6G positions.


PRINCIPLE #5 Environmental responsibility and conservation of natural resources and biodiversity


ASSESSMENT REPORT

SPO – 4006a.5 Page 25


5.1 Aspects of plantation and mill management, including replanting, that have environmental impacts are identified, and plans to negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continuous improvement.

PT Bahari Gembira Ria has had the approved ANDAL and RKL/RPL document by Jambi Governor No. 304/KEP.GUB/ BAPEDALDA/2007 on 2nd August 2007, which covers 4000 Ha nucleus plantations, 6000 Ha of plama plantation area and palm oil mill with the capacity of 45 ton FFB/Hour. PT Bahari Gembira Ria has conducted environment management in accordance to its environmental document (AMDAL). PT Bahari Gembira Ria explains it environmental management in RKL and RPL implementation report. This report has been submitted to relevant institution, for instance delivery note over RKL and RPL report for Semester II 2013 on 13rd May 2014 to BLH of Muaro Jambi district and BLH Jambi province. There is no revision over the scope of PT Bahari Gembira Ria’s operation activity.


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.

There is a document for HCV identification area, which explains the existence of ecosystem with HCV and protected wildlife by Government regulation No. 7 in 1999, CITES, and/or IUCN. Company decision to choose this area as an HCV area has involving NGO (Non Governmental Organization) and university (Jambi university) on expert consultation. Based on HCV identification result document in PT. BGR area, the HCV area consists of:

NKT 1.1: important area for soil and water conservation (Buffer zone of Terentang river) as well as wildlife pocket at Block A001.

NKT 1.3; 1.4; and 2.3: important area for protecting specific wildlife, located at Block A001.

NKT 4.1: important area for controlling water source and flood (Terentang River);

NKT 5: important area for local community’s basic need (Terentang River). The protected species in PT Bahari Gembira Ria area consist of: 9 types of mamal, such as macan akar (Felis bengalensis), siamang (Hylobates syndoctylus), landak (Hystrix branchyura); 5 types of bird, such as raja udang (Alcedo atthis), and elang hitam (Ictinaetus malayensis). PT Bahari Gembira Ria is taking some efforts to protect the protected wildlife’s and their ecosystem, such as:

Monitoring over floral and wildlife in HCV area. Record over monitoring result, such as, Monitoring on 10th January 2014 in Division I and II: 12 types of floral and 11 types of wildlife (2 types of bird; 6 types of mammal; 3 types of reptile).

Cultivating plantation in HCV area. Based on field visit to Terentang River, Block C029, Division III, LPE, it already has forest vegetation.

Installation of HCV stakes. Based on field visit to Terentang river, Block C029, Division III, LPE, it already has sign of restriction for spraying (circle yellow paint on the trees)

Installation of ban board as a restriction to poison fish and cut trees in buffer zone, like in Division III, Block C025, Block C029 and in Division I block A02.

Installation over ban boards, which mention information on protected wildlife. There ban boards are installed in identified HCV area as the ecosystem for wildlife, for instance: in buffer zone of Terentang river at Block C023 and C025 Division III.

Socialization for HCV protection program to local community and PT Bahari Gembira Ria employee, for instance: - Socialization to local community, for instance on 13rd June 2013, which attended by 9 villagers from sumber agung

village. Documentation and attendance sheet are available. - Socialization to personnel, for instance on 4th May 2013, which attended by 24 personnel (foreman, clerk, harvesters).

Documentation is available.


ASSESSMENT REPORT

SPO – 4006a.5 Page 26


But based on interview result with personnel in Division I LPE, personnel didn’t know about the existence of protected wildlife in estate area. Non-compliance, please refer to CAR No. 2014.05.

Observation on 3rd July 2014. Root cause: Lack of socialization for personnel regarding the protected wildlife.

Corrective action: BGR has presented the evidence for socialization on HCV area and protected wildlife, which was conducted on 23rd and 24th May 2014 in Division 1 and 2 LPE.

Preventive actions: Conducting regular socialization on HCV.

Auditor conclusion: The presented evidence can be accepted and fulfilled the requirement. Non-compliance NCR 2014.05 is Closed The management of PT Bahari Gembira Ria has pointed special officer to maintain HCV area (Mr. Taufik Nasution) through decision letter number: /BGR-HCV/VIII/2011 on 1st July 2011. Documentation and attendance sheet for HCV training with assistant from Ladang Panjang Estate, on 24th December 2011 are available.

Minor 5.2.1 Status: Minor Non-compliance NCR 2014.05 is Closed

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

Sources of waste and pollution/emission have been identified, there are 5 (five) group of solid and liquid waste, such as: a. Hazardous waste (used filter - workshop, used oil - workshop and generator hut, used dinamo - workshop and

spraying station, used pesticide packages – spraying area, rinse water for pesticide - chemical spraying activity); b. Domestic waste (paper, plastic, jar, organic waste – source: housing, office, workshop, warehouse); c. Clinical waste (syringe, injection jar, medical box); source from clinic. d. Mill’s waste (empty fruit bunched, processing liquid waste, iron flour, shell & fiber, and boiler dust).

meanwhile, emission/ pollution sources are identified and documented

a. Air pollution/emission that comes from chimney boiler’s activity, generator 1, 2 and 3, b. Noise that comes from turbine operation, generator, polishing drum’s sppin, nut creaker. c. Soil and water pollution that come from oil and hazardous waste warehouse.

Management plan for liquid and solid waste as well as the disposal of used agrochemical packages is based on the applicable regulation. The management is based on each waste’s haracteristic.

a. Hazardous waste: filter, oli, accu, majun fiber, used pesticide packages are stored in licensed waste warehouse, for futher delivery to licensed collector. Used oil balance in mill is 0 liter (before being soil to CV. Surya jaya logam) amount 132 L on 19th March 2014. Manifest for hazardous waste delivery to CV Surya Jaya Logam on 19th March 2014: ABQ 0000293: used oil amount 1000 liter (5 drums) ABQ 0000530: filter oil amount 60 pcs ABQ 0000531: Majun fiber amount 2 kg ABQ 0000532: contaminated package amount 61 sacks

CV. Surya Jaya Logam has a license to collect hazardous waste, that inlibe with ministry of environemnt decision No. 53 in 2011. There is also a reccomendation for hazardous waste transportation by ministry of environment No. 13229/Dep.IV/LH/PDAL/11/2013 with annexes that state company’s responsibility and specification for transporting vehicle. Article 3 explains that types of transported and handed hazardous waste to licensed hazardouse waste colector are used accu, majun fiber that is contaminated by hazardouse waste, used filter oil, dust grinding, sludge oil, fly ash, bottom ash and used TL bulb. It needs to review CV. Surya Jaya Logam status, which is not reccomended to transport pesticide packages.

b. Used pesticide package waste from spraying activity need to be cleaned, then be sent to hazardous waste warehouse in Ladang Panjang mill (SOP RSPO/P&C/PLB3). Used pesticide packages that generate from chemical material like


ASSESSMENT REPORT

SPO – 4006a.5 Page 27


kenlon, ally, agenda, basta, audit, metafuron, starane. At present, pesticide packages are stored in hazardouse waste warehouse in Ladang Panjang mill. Used pesticide packages are sold to licensed hazardous waste transporter on 16th March 2012. Stock of used pesticide packages in mill’s warehouse at present, such as: Kenlon (247 unit), ally (225 unit), agenda (41 unit), Basta (39 unit), audit (47 unit), metafuron (205 unit). Starane (60 unit).

c. Medical/ clinic waste is handed to waste warehouse at the mill, and being stored along eith other mill’s wastes. Furthermire, the clinical waste will be handed to arafah general hospital to be destroyed (using insenerator). At present, company has sent medical/ clinic waste amount 5,5 kg to arafah general hospital.

Field observation: TPS LB3 located in mill’s area and completed with eye shower, hazardous waste balance is in accordance with hazardous waste content, which being stored in hazardouse temporary landfill. For instance: filter oil, used oil, medical waste and so on.


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

PT Bahari Gembira Ria has conducting monitoring over renewable energy usage, like the utilization of shell and fiber as fuel for boiler to generate electricity, for instance:

March 2014: Shell usage 577.276 Kg and fiber usage 1.539.402 Kg.

April 2014: Shell usage 707.021 Kg and fiber usage 1.885.389 Kg. PT Bahari Gembira Ria also conducted the calculation over energy efficiency per ton CPO, for instance:

March 2014: 81,86 Kwh/Ton CPO

April 2014: 47,50 Kwh/Ton CPO PT Bahari Gembira Ria conducted monitoring over diesel fuel utilization for operation activity, for instance:

Diesel fuel usage for generator in mill in March 2013: 30.304 liter

Diesel fuel usage for generator in mill in April 2013: 26.408 liter

Diesel fuel usage for generator in mill in March 2014: 24.630 liter

Diesel fuel usage for generator in mill in April 2014: 22.528 liter


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

PT. BGR has an SOP for land preparation, which stated in part 4 SOP for agronomic manual reference for palm oil cultivation No. Policy; 110/EST-ARM/13 on 1st September 2013, this SOP explains that land preparation for replanting activity is using zero burning approach like cutting the palm oil trees and palm oil root’s dismantling. PT. BGR has a procedure for fire management, No. 7312/BGR-ESH/14 on 04 March 2014, which approved by PT. BGR’s manager that explains about preparation, fire extinguisher team, fire management, administration and reporting. PT. BGR Fire extinguisher facility, consists of: Mill: - Fire extinguisher 36 units, type: Powder, capacity 1 x 6 kg and 2x6 kg, in a good condition - Personnel housing facility: Fire extinguisher 23 units, capacity 1 x 6 kg, in a good condition - Personnel housing: Fire extinguisher 7 units, capacity 1 x 6 kg, in a good condition - Hydrant 6 units, box 95x65x20, in a good condition Estate:


ASSESSMENT REPORT

SPO – 4006a.5 Page 28


- Fire extinguisher 52 units, in a good condition, being checked in March 2014. - Fire extinguisher 5 units (tohatsu 2, robin 1, sibaura 2) being checked on 11/05/2014 - Wet sack 4 units being checked on 11/05/2014 - Trailer reservoir 1 units being checked on 11/05/2014 - Tractor (if needed) 1 unit being checked on 11/05/2checkedine vehicle (if needed) 1 unit being checked on 11/05/2014 PT. BGR has establish emergency response team, such as:

For estate: PT BGR-LPE/AME emergency team, which consists of broad structure: advisor (Estate Manager), head of coordinator (Mirlansyah), fire coordinator, disaster coordinator, riot coordinator, medical and documentation team.

For mill: has organ gram for emergency response and P2K3 Ladang Panjang Factory, which consist of chairman (Poltak Nainggolan), vice of chairman (Sutrisno), secretary, head of fire division, physician, head of chemical division, head of education and training division, head of press kernel and machine division, head of environment health division, head of electivity division and head of transportation division.


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

Identification result over emission and pollution source is available in PT Bahari Gembira Ria’s matrix of pollution and emission identification, which informs: group of emission and pollution, source of pollution and management action for each type of pollution/ emission. Company categorized pollution and emission into 2 (two) groups, such as air pollution and emission (smoke, dust, noise – source: chimney boiler, generator, transporting vehicle, transportation road), and land water pollution (oil leakage, diesel fuel leakage and chemical material leakage – oil warehouse, hazardous waste warehouse and diesel fuel tank, laboratory). PT Bahari Gembira Ria regularly monitors the quality of air and emission (one in 6 months). The monitoring result over air and emission quality is explained and evaluated in RKL and RPL implementation report. Based on generator emission quality evaluation, its known that the entire examination parameters have fulfilled the applicable standard quality. Company’s efforts to reduce air pollution and emission, such as by make a policy that it is mandatory to wear mask in pollution source area, regular cleaning over fiber grate boiler (after processing activity), cleaning over dust collector (daily), cleaning airlock (every month), ducting leakage evaluation (monthly), vehicle’s KIR (every six months), rad maintenance in mill’s area (daily – every morning), main road maintenance (depend on field condition), regulation over vehicle speed, installation of smoke density. Noise handling by using earplug and machine maintenance (every 2 weeks). Air and soil pollution management by using container and water trap. The generating liquid waste from production activity in Ladang Panjang mill is managed in IPAL ponds before being applied to field. PT Bahari Gembira Ria has a license to utilize liquid waste in accordance with decision letter from Muaro Jambi reagent No. 301 in 2011 on 12nd July in 2011 regarding the permit to utilize palm oil mill’s liquid waste to palm oil plantation area. The applied area is inline with the permit, with a broad of 162 Ha. This permit is valid until 5 years since the issuance. Record over liquid waste utilization is available, for instance: in December 2013: 3.033,1 M3 been utilized in C27 (10 Ha) and 6.457,8 M3 in C28 (18,4 Ha).


PRINCIPLE #6 Responsible consideration of employees and of individuals and communities affected by growers and mills


ASSESSMENT REPORT

SPO – 4006a.5 Page 29


6.1 Aspects of plantation and mill management, including replanting, that have social impacts are identified in a participatory way, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate the continuous improvement.

There is a social impact study over palm oil management in January 2010, which presents 5 (five) main variable of social impact (chapter 5.5), such as: 1. Character of population; the establishment of immigrant community; elderly and children group. 2. Structure of community and institution; 2 new villages, such as Petaling Jaya and Sumber Agung. 3. Political and social source; independent smallholder would like to become plasma smalholder. 4. Individual and family’s change; firstly they earn money as farmer but now they become employee. 5. Community’s resources: conversion of forest area and HGU into palm oil plantation. PT Bahari Gembira Ria has the ANDAL (environment impact analysis) and RKL/RPL (management plan/ environment monitoring) document, which are endorsed by Jambi governor’s decision No. 304/KEP.GUB/ BAPEDALDA/2007 on 2nd August 2007, covering the nucleus plantation (4000 Ha), plasma area (6000 hectare), and palm oil mill (PKS) with a capacity of 45 ton FFB/Hours. There is a record for social impact plan and monitoring, which is presented in RKL/RPL implementation report on Semester 2 in 2013. PT Bahari Gembira Ria has + 6000 Ha for plasma plantation scheme. Social impact study shows that there are social impacts toward local community and plasma smallholder, such as: increasing income, change on livelihood, etc. cultivation technic in nucleus plantation is applied in plasma plantation scheme with a Perkebunan Inti Rakyat-Transmigrasi (PIR – Trans) method. At present, there are 5 cooperatives, which have partnership with PT Bahari Gembira Ria as fresh fruit bunches supplier to PT Bahari Gembira Ria’s mill. These cooperatives are: Marga Jaya, Karya Mandiri, Mitra Inti, Sumber Makmur and Karya Maju. PT Bahari Gembira Ria has established special organization to manage plasma plantation, which lead by officer (at the same level with manager). This arrangement’s objective is to endure that mill receives high quality FFB from partner (same quality with FFB from nucleus plantation). Management structure for plasma plantation scheme:

Manager : Ali Munar Lubis Assistant Division I : Syahnal Munthe Assistant Division II : Ageng Sayfulloh KTU/Head of section : Herry Petrus Nainggolan

Based on field visit and interview with smallholder and Mitra Inti Sumber Makmur and Karya Mandiri cooperative, audit found information that bina tani conducted monthly socialization/ regarding procedure and harvesting criteria (ripe fruit criteria and restriction to poison fish in the river).


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.

Company has communication and consultation mechanism with stakeholders ((RSPO/1.P/PI) on 08th March 2010), which allows two way communication or discussion between company and stakeholders. The communication is carrying out both in written and oral. PT. BGR has the SOP for personnel’s complaint mechanism, doc No. 004/BGR/II/11. No. Revision 01, on 30th April 2013. The objective of this SOP is to provide guideline to handle personnel’s complaints, which are directed to each operation unit. The entire grant request/ complaint/ information request from personnel or stakeholders will be recorded in letter in and out book. Company has stakeholder list, such as:

1. Community leader from Petaling Jaya, Ladang Panjang, Sumber Agung, Mingkung Jaya, Gambut Jaya and Tri Mulyo Jaya village

2. TNI AD (Babinsa from Sumber Agung village and Babinsa from Sungai Gelam village)


ASSESSMENT REPORT

SPO – 4006a.5 Page 30


3. Local government 4. Local technical institution/national – Dinamanpower and transmigration agency, local income agency/ Dinas

Pendapatan Daerah, Jamsostek, insurance company and bank 5. GAPKI 6. NGO (Walhi Jambi, Sawit Watch Indonesia), 7. Worker union (FSP.PP.SPPI PT Bahari Gembira Ria) 8. Education facility 9. Contractor 10. General hospital 11. Insurance institution 12. Bank

Ladang Panjang Estate manager, on behalf of PT. BGR has pointed person incharge for communication and consultation with community (M.Yani - Sr. assistant PSD) on 21st May 2014.


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

There is an SOP for community complaint management (RSPO/6.3/PKM) PT Bahari Gembira Ria. This procedure is a guideline to manage community’s complaint, which pointed to each operation unit. Complaint from community will be submitted to unit manager through head of section in written. Head of section will record each and every complaint in complain registration book. There is also an SOP for conflict resolution (No. RSPO/2.2/PK), which manages the process of conflict resolution. Area’s claim from related party will be submitted to head of administration for further documentation and response from manager (should be inline with manager’s responsibility). PT Bahari Gembira Ria has an SOP for effective evaluation over legal land acquisition and traditional land acquisition (RSPO/6.4/HLT). This procedure is a guideline for local community and each operation unit to manage legal land acquisition and traditional land acquisition. Complaints from local community are recorded in “NOTE BOOK LOG KOMUNIKASI”. Based on Log Book (until 2014) there is no complaint from local community. Mostly, Log Book contains grant proposals from local community.


6.4 Any negotiations concerning compensation for loss of legal or customary rights are dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions.

PT Bahari Gembira Ria has an SOP for effective evaluation over legal land acquisition and traditional land acquisition (RSPO/6.4/HLT). This procedure is a guideline for local community and each operation unit to manage legal land acquisition and traditional land acquisition. Until the surveillance 2, PT. BGR had no extension over its plantation area, which remains 3.031,63 Ha with 2.874,34 Ha planted area. So there is no land compensation over PT. BGR plantation area.


6.5 Pay and conditions for employees and for employees of contractors always meet at least legal or industry minimum standards and are sufficient to provide decent living wages.

PT Bahari Gembira Ria has a Memorandum letter No. 033/HRM-i3/II/2013 regarding daily SKU WAGE UPAH SKU and salary structure for monthly SKU in 2014, which based on mutual agreement between Badan Kerjasama Perusahaan Perkebunan Sumatera (BKS-PPS) with worker union SPSI Jambi province, on 4th December 2013, the minimum wage is Idr. 1.540.


ASSESSMENT REPORT

SPO – 4006a.5 Page 31


000/month and this is in accordance with decision letter from Jambi Governor number: 610/Kep.Gub/DISOSNAKERTRANS/2013 regarding minimum wage for Jambi province in 2014 amount Idr. 1.502.230/month. Company shows latest salary list, which explains the amount of main salary, allowances and insurance. Company’s salary list, for instance:

1. LPE. There is a detail of SKU master salary for period April 2014. SKU master salary consist of NIP, worker name, total wage (HK/daily), total wage (unit work), premi, overtime, rapel, jamsostek (company will pay this expense), THR/Bonus, Rice allowance, Bruto wage, deduction for income tax, small salary + deduction, Total Jamsostek, allowance, total of deduction, paid salary

2. LPF. There is a detail for SKU master for period April 2014. List of SKU master, consists of NIP, worker name, total wage (HK/daily), total wage (unit work), premi, overtime, rapel, jamsostek (company will pay this expense), THR/Bonus, Rice allowance, Bruto wage, deduction for income tax, small salary + deduction, Total Jamsostek, allowance, total of deduction, paid salary

PT Bahari Gembira Ria presents its consistency by repeatedly mentions manpower related issues that should be complied by contractor. For instance in article 3 in requirement and working standard, article 3, which mention that contractor and the entire personnel are mandatory to comply the applicable regulation in accordance to manpower law.


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.

Company’s policy, which gives freedom for its personnel to establish and join union is stated in point 5 of sustainable plantation management guideline No. 724/TQEM-SPMS/09 on 1st April 2010, and signed by CEO (Chief Executive Officer). There is a decision letter no: 17/PC F.SPPP-K.SPSI/Ma.Jambi/III/2012 regarding the approval/ endorsement over composition and organ gram of federation broad of worker union for agriculture and plantation unit in Indonesia (PUK F.SPPP-SPSI) PT Bahari Gembira Ria for period 2012 - 2017 with main organ gram: Suyanto (chairman), Nitemo Gulo (secretary), Sudarsono (treasurer)


6.7 Children are not employed or exploited. Work by children is acceptable on family farms, under adult supervision, and when not interfering with education program. Children are not exposed to hazardous working conditions.

Memorandum from Head Plantation Operations Minamas Plantation Number POD-UM 121/VI/2010 on 07th June 2010 regarding child protection policy, such as in point 6, states that policy of using/ hiring children under age (below 18 years old) is in accordance with manpower law. Document’s review over personnel data for period April 2014 shows that there are no personnel under 18 years old during the recruitment. Personnel data is available. PT Bahari Gembira Ria records the entire personal information for its personnel, such as: name, date of birth, date of starting work, and date of ending work or mutation. Based on personnel’s personal data in march March 2014, there are no personnel under 18 years old during the recruitment. Company has installed some information boards (sign board), which are placed near personnel housing location, which encouraging local community not to hire children under age.

Status: Comply

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.

Policy on fair treatment and opportunity to get work: - Sime Darby social policy for plantation Company in 2011 states that the entire personnel should be fairly treated related to


ASSESSMENT REPORT

SPO – 4006a.5 Page 32


recruitment, promotion, working condition and boundary with no discrimination against personal matters such as race, social status, ethnic, nationality, gender, skin color, physical impairment/ disability, organization membership, political view, religion and or age.

- Sustainable plantation management guideline, policy no. 724/TQEM-SPMS/09 regarding social policy point 1, states that the entire personnel should be fairly treated related to recruitment, promotion, working condition and boundary with no discrimination against personal matters such as race, social status, ethnic, nationality, gender, skin color, physical impairment/ disability, organization membership, political view, religion and or age.

There is a document for grade promotion and rotation document and mutation that not discriminating personnel based on group, race, ethnicity, nationality and religion.


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

Social policy No. 724/TQEM-SPMS/09 in point 4 explains that company provides protection over sexual harassment and sexual assault. CEO endorsed this policy. Mutual work agreement states the policy for reproductive right protection in article VIII regarding the full payment for personnel who take maternity leave that inline with UU No 13 in 2003 article 79 point 2 C (maternity and miscarriage leave); this is also stated on Director decision letter no. 016/dir/PKB/I/2004 regarding maternity allowance. There is a complain mechanism for oral and written complaint, which can be submitted through company’s gender committee (SOP No. RSPO/2.2/PK regarding conflict and complaint resolution). Complain form is available. Oral complains are submitted directly through direct supervisor, meanwhile for written complain can be submitted through letterbox, which has been placed in estate and mill’s area. The entire complains from personnel, both oral and written are recorded in personnel complain Logbook


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

The price over FFB is set by plantation agency of Jambi province, which based on meeting result with stakeholders (representative from each company, smallholder, etc). Minutes of meeting for FFB pricing for period 16th May until 22nd May 2014 is available in a form of price calculation table (pricing formulation) and attendance sheet for meeting to set FFB’s price on 14th May 2013 in plantation agency of Jambi province’s office.


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

Sample of company’s contribution records, such as: 1. PT Bahari Gembira Ria tax payment receipt over tax’s object in Sungai Gelam village, Sungai Gelam sub district, and

Muaro Jambi district, Idr. 541.905.104 2. PT BGR’s CSR implementation expenses from 2010 to 2011,Idr. 979.900.000 3. PT Bahari Gembira Ria’s CSR budget in 2013/2013 is Idr. 110.800.000, the implemented activities such as: 4. Education 5. Sport 6. Social 7. Health 8. Documentation (photos) like road improvement in Sumber Agung village & hand over of meat grant 9. PT Bahari Gembira Ria’s CSR budget in 2013/2014 is idr. 110.800.000, the implemented activities such as: education,

sport, social, health 10. CSR program implementation in 2013/2014: allowance for elementary teacher, road improvement and village bridge


ASSESSMENT REPORT

SPO – 4006a.5 Page 33


construction, mass circumcision, blood donor, grant for commemoration of Indonesia’s independent day on 17th August and grant for Islamic commemoration event.

Records over CSR implementation: implementation minutes (BAP) and documentation such as photos.


PRINCIPLE #7 Responsible development of new plantings

7.1 A comprehensive and participatory independent social and environmental assessment is undertaken prior to establishing new plantings or operations, or expanding existing ones, and the results incorporated into planning, management and operations.

There is no new area’s development after November 2007. There is an additional cultivation in 2009 in Ladang Panjang Estate, Division I, Block A012, A013, and A014, broad 271.47 Ha. Cultivation area after November 2007 has been covered in the existing environment management document (AMDAL). Cultivation area after November 2007 has been covered in RKL and RPL implementation report that had been reported regularly every 6 months to related institution. PT Bahari Gembira Ria has a plasma plantation scheme program, which consists of 5 KUD. Facilitation program for Plasma plantation smallholder such as:

Socialization on palm oil pest and disease

Socialization for palm oil fertilization.

There are some records for plasma plantation smallholders’s facilitation program, such as:

Socialization on palm oil pest and disease to KUD Karya Mandiri and farmer group of Bunga Selisih IX on 14th March 2014. Documentation for this activity is available.

Socialization for palm oil fertilization to KUD Karya Maju, Bunga Selisih XV farmer group on 26th March 2014. Documentation for this activity is available.


7.2 Soil surveys and topographic information are used for site planning in the establishment of new plantings, and the results are incorporated into plans and operations.

There is no new area’s development after November 2007. There is no additional cultivation after 2009 in Ladang Panjang Estate. PT Bahari Gembira Ria has conducted the semi detail soil survey for the entire area in Ladang Panjang Estate. Information on this document mentions about topography, soil type, drainage and necessary management. There is a record for plantation development that inline with land suitability study and semi detail soil survey. For instance:

Based on area’s study result in division I and II, including peat area with water management. Based on document’s review and field visit, its known that there are some canals as a form of water management.

Based on area’s study in division III, it can be applied with empty fruit bunches. Monitoring record for empty fruit bunches application in division III area is available.



ASSESSMENT REPORT

SPO – 4006a.5 Page 34


7.3 New plantings since November 2005, have not replaced primary forest or any area required to maintain or enhance one or more High Conservation Values.

PT BGR didn’t have new plantation area clearing after November 2007, the current plantation area is based on ministry of forestry decision number: 73/Kpts-II/1996 on 27th February 1996 regarding the releasing of some parts of forest area that located in S. Parit - S. Kumpeh forest area, Jambi province, broad 14.349 Ha for palm oil plantation with a PIR transmigration pattern on behalf of PT Bahari Gembira Ria. There is a document for High Conservation Area identification result (HCVA) for period 2010 in PT Bahari Gembira Ria.


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

There is no new area’s development after November 2007. There is no additional cultivation after 2009 in Ladang Panjang Estate. Based on document’s review and field visit in PT BGR, its known that PT BGR has marginal area, such as peat area. PT Bahari Gembira Ria conducted survey to measure the depth of peat area, which conducted by MRC from 12th Dec to 16th Dec 2011. Based on study, its known that 41 % (1.156,15 Ha) area is mineral area and 59% (1.697,65 Ha) is peat area. There is area’s map, with a scale of 1: 200.000, which shows mineral and peat land spread. Peat areas are spreading in the entire division I and II.


7.5 No new plantings are established on local peoples’ land without their free, prior and informed consent, dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions.

BGR has a document for social and environment impact analysis, which is explained in social impact management for palm oil plantation, January 2010 and environment impact analysis document (AMDAL), August 2007 for the entire management area. Until the surveillance 2, PT. BGR had no extension over its plantation area, which remains 3.031,63 Ha with 2.874,34 Ha planted area.


7.6 Local people are compensated for any agreed land acquisitions and relinquishment of rights, subject to their free, prior and informed consent and negotiated agreements.

Until the surveillance 2, PT. BGR had no extension over its plantation area, which remains 3.031,63 Ha with 2.874,34 Ha planted area. So there is no land compensation over PT. BGR plantation area. PT Bahari Gembira Ria has an SOP for effective evaluation over legal land acquisition and traditional land acquisition (RSPO/6.4/HLT). This procedure is a guideline for local community and each operation unit to manage legal land acquisition and traditional land acquisition.


7.7 Use of fire in the preparation of new plantings is avoided other than in specific situations, as identified in the ASEAN guidelines or other regional best practice.


ASSESSMENT REPORT

SPO – 4006a.5 Page 35


PT. BGR has an SOP for land preparation, which stated in part 4 SOP for agronomic manual reference for palm oil cultivation No. Policy; 110/EST-ARM/13 on 1st September 2013, this SOP explains that land preparation for replanting activity is using zero burning approach like cutting the palm oil trees and palm oil roots’ dismantling. PT. BGR has a procedure for fire management, No. 7312/BGR-ESH/14 on 04 March 2014, which approved by PT. BGR’s manager that explains about preparation, fire extinguisher team, fire management, administration and reporting. PT. BGR Fire extinguisher facility, consists of: Mill: - Fire extinguisher 36 units, type: Powder, capacity 1 x 6 kg and 2x6 kg, in a good condition - Personnel housing facility: Fire extinguisher 23 units, capacity 1 x 6 kg, in a good condition - Personnel housing: Fire extinguisher 7 units, capacity 1 x 6 kg, in a good condition - Hydrant 6 units, box 95x65x20, in a good condition Being documented in inventory list of hydrant and fire extinguisher on 10th May 2014. Estate: - Fire extinguisher 52 units, in a good condition, being checked in extinguisher - Fire extinguisher 5 units (tohatsu 2, robin 1, sibaura 2) being checked on 11/05/2014 - Wet sack 4 units being checked on 11/05/2014 - Trailer reservoir 1 units being checked on 11/05/2014 - Tractor (if needed) 1 unit being checked on 11/05/2014 - Hiline vehicle (if needed) 1 unit being checked on 11/05/2014 PT. BGR has establish emergency response team, such as:

For estate: PT BGR-LPE/AME emergency team, which consists of broad structure: advisor (Estate Manager), head of coordinator (Mirlansyah), fire coordinator, disaster coordinator, riot coordinator, medical and documentation team.

For mill: has organ gram for emergency response and P2K3 Ladang Panjang Factory, which consist of chairman (Poltak Nainggolan), vice of chairman (Sutrisno), secretary, head of fire division, physician, head of chemical division, head of education and training division, head of press kernel and machine division, head of environment health division, head of electivity division and head of transportation division.


PRINCIPLE #8 Commitment to continuous improvement in key areas of activity

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

Company has conducted regular social and environment management and monitoring (every 6 months) in order to monitor environment quality due to plantation operation activity. Company also monitors other activities related to its commitment over sustainable improvement, such as:

- Company has managed liquid waste for land application and no longer throw the waste to river

- Efforts to reduce solid waste by using empty fruit bunches for fertilization, shell for boiler fuel and midrib for frond stacking.

- Efforts to reduce emission and pollution by periodically maintaining emission and pollution sources (for instance: boiler) and establishing temporary warehouse for hazardous waste.

- Efforts to reduce social impact by recruiting local personnel and implementing CSR programs. Company has presented its improvement over previous finding during Surveillance 1. 4 previous findings are entirely closed.



ASSESSMENT REPORT

SPO – 4006a.5 Page 36


3.2. Summary of Assessment Report of Supply Chain

Clause (Module E) CPO Mills - Mass Balance Requirements

1 Documented Procedures

1.1

The facility shall have written procedures and/or work instructions to ensure the implementation of all the elements specified in these requirements. This shall include at minimum the following:

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

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

Company has a procedure for product supply chain system (SOP-026/BGR/12) to identify raw material and end product in irder to find out the relationship between raw material and product’s quality and make the product more treacable. Person incharge to implement this requirement are:

a. Mill’s manager is responsible to maintain and keep the entire documents, record over the entire raw material utilization, supporting material on production process and end product quality. Verification over product status will be sent to buyer in accordance with invoice, delivered order, sales contract and mill’s manager will sign delivery form. Providing sufficient training on supply cahian certification requirement to all personnel that involved on raw material acceptance and provision chian, production process, storage and deliverance of mill’s product to buyer.

b. PSQM assistant is responsible to check FFB’s quality in mill and make daily recapitulation for FFB’s quality assesment. Conducting supervision over plam product delivery and loading as well as withnesing the development of minutes of CPO and Palm Kernel deliverance. Conducting analysis and quality assesment for raw material and product in the entire production’s proces. Storing, maintaining, distributing the analysis result and evaluation over raw material and product quality to related institution.

c. Assistant/Senior assistant/bulking manager/logistic is responsible on CPO and palm kernel product transportation from bulking station/third party. CPO and palm kernel handling and storage in bulking station area/ third party.


1.2

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

Product supply chain system procedure (SOP-026/BGR/12) regulates the acceptance process, and documentation over certified FFB and non-certified FFB. Mass Balance supply chain system such as:

Separating weighing card for RSPO certified FFB and non RSPO certified FFB.

Daily production report mentions total daily production over certified and non certified CPO and kernel.

Developing 3-months recapitualiton report over certified and non-certified CPO and kernel production.

Sample of weighing card for RSPO Certified: from LPE (E482); BH 8350 GL; driver= Hata; DO= 48214007670; on 17th May 2014; hour 20.02; harvesting date= 17th May 2014 in Field 03B020; 600 bunches; 7.620 Kg.

Sample of weighing card for non RSPO Certified: from KUD Marga Jaya (P507ID11K0003); transporter KMJ – KUD Marga Jaya; BH 8537 GL; Driver= Wijaya; on 17th May 2014; jam 9.20; 17th May 2014 on Field P50796A01 and P50796A02; 590 bunches; 10.680 Kg.

There is a report for mill’s income and deduction. This report explains the recapitulation over accepted FFB from each estate. Acceptance data from nucleus estate and KUD is separate. This report explains the name of the driver; No DO; Ticket; delivery date and time; weighing date and time; time from estate to mill; time from mill to incoming weighing; incoming weighing to out-going weighing; incoming weighing; out-going weighing.



ASSESSMENT REPORT

SPO – 4006a.5 Page 37


2 Purchasing and goods in

2.1

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

Company verifies every incoming FFB to mill, both from nucleos planation and plasma plantation scheme. Every truck that will enter mill should present the coupon, which explains certified or non-certified FFB. Product’s record is separated between RSPO certified and non-certified FFB from early acceptance stage in mill, FFB sortation up to product sale. For instance:




2.2

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

There is a data for FFB’s production from mill, FFB from smalholder/ other sources. For instance: 1. estate: FFB amount 44.841,91 Ton/year with stock from mill amount 44.841,91 ton/year 2. mill: processed FFB amount 138.308,73 ton/ year with processed capacity amount 30 ton/hour; out put CPO amount

29.535,964 ton with an extraction amount 21,36 %; out put inti kernel out put amount 11.225,43 with an extraction amount 4,03 %.

3. KUD: TBS amount 69.427,22 ton/year with stock from mill amount 69.427,22 ton/ year.


3 Record keeping

3.1

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

Record over RSPO certified and non-certified product is separated from early stage of FFB’s acceptance in the mill, FFB’s sortation up to product sale. For instance:



Sale of 750.000 Kg oil palm to PT Synergy Oil Nusantara on 25th April 2014, sales contract no. 00247/BGR/KTR-MKS/LOK/IV/2014. Invoice states buyer’s name, Jalan Raya Pelabuhan Kabil KM 12,5 Kabil, Batam. Product is categorized as RSPO Mass Balance. Product was sent using inland transportation (DO transporting 00261/00247/04/14/L-BGR-MKS).

Sale of 300.000 kg palm kernel to Kurnia Tunggal Nugraha on 28th April 2014, sales contract no. 00094/BGR/KTR-IKS/LOK/IV/2014. Invoice states buyer’s address: Jalan WR Supratman No. 75 Pasar Jambi – Jambi. Product is categorized as RSPO Mass Balance. DO transporting 00100/00094/04/14/L-BGR-IKS.


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

Company has set the record retention time and report for 5 years.


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


ASSESSMENT REPORT

SPO – 4006a.5 Page 38


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.

Record over RSPO certified and non-certified product is separated from early stage of FFB’s acceptance in the mill, FFB’s sortation up to product sale. The entire FFB’s acceptance from mill (certified FFB) and plasma (non-certified) have been monthly recorded, 3-months recorded and annually recorded. The generating CPO and kernel from mill are recorded with 3-months and annual basis.


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.

Sales invoice has stated clear information about buyer’s name and address, invoice issuance date, product description and total deliered product, for instance:




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.

Ladnag Panjang Mill, BGR does not have outsources activites to an independent kernel crushing plant,


4 Sales and goods out

4.1

The facility shall ensure that all sales invoices issued for RSPO palm oil delivered include the following information:

(a) The name and address of the buyer

(b) The date on which the invoice was issued

(c) A description of the product, including the applicable supply chain model (Segregated or Mass Balance)

(d) The quantity of the product delivered

(e) Reference to related transport documentation

Sales invoice has stated clear information about buyer’s name and address, invoice issuance date, product description and total delivered product, for instance:





ASSESSMENT REPORT

SPO – 4006a.5 Page 39


5 Training

5.1

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

company provides training related to the imolementation of supply chain certification system especialy for related officer/ officer in charge. Training was conducted on 1st May 2013 with resouce person (Mr. Rinno Ferryno). the materies are about understanding over supply chain certfiication roles and supply chain mechanism from source of raw material to processing and product dispatch.


6 Claims

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

Company records certified and non-certified FFB’s production, which enter Ladang Panjang mill. The generated certified CPO and palm kernel are well documented, only certified product that will be claimed by company. Coding in invoice and purchasing note indicates the separation between RSPO certified and non-certified product.


3.3. Conformity Checklist of Certificate and Logo Use

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

S-2 PT Bahari Gembira Ria not use RSPO logo on each document and its products, be it on-product or

off-product. NA


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

against Guideline of Logo Use


off-product. NA


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


off-product. NA


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


off-product. NA



ASSESSMENT REPORT

SPO – 4006a.5 Page 40


3.4 Summary of RSPO Partial Certification.

Name of organization : PT Mitra Austral Sejahtera

2.1

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

X or√

PT Mitra Austral Sejahtera is compliance with applicable laws and regulations.

2.2

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

X or√

PT Mitra Austral Sejahtera has demonstrated land use and not legitimately contested by local communities. The company’s land acquisition process has been in accordance with the prevailing regulations

6.3

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

X or√

PT Mitra Austral Sejahtera has documented system for dealing with complaints and grievances, which is implemented and accepted by all parties. There is a Communication Procedure No. Policy 501/MAS-KOM-03/11 dated 8 April 2011 implemented through the Mail Box, Email, Announcements, posters, brochures / pamphlets and meeting / briefing, etc. To resolve complaints / disputes associated with land, the company has prepared a Compensation Negotiation Process Mechanism No Policy 501/MAS-Doc 01/11 dated 8 April 2011, which contains a flowchart of (derasa) compensation payment process through a amicable discussion and meetings with Muspika (Task Force).

6.4

Any negotiations concerning compensation for loss of legal or customary rights are dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions.

X or√

PT Mitra Austral Sejahtera has a Compensation Negotiation Process Procedure No. Policy 501/MAS-Doc 01/11 dated 8 April 2011, which contains a flowchart of compensation payment process (Derasa) through amicable discussion and meeting with Muspika. The pricing of compensation is based on the Minutes of Agreement on Compensation (Derasa) Pricing dated December 8, 2005 as agreed by PT MAS, Community Leaders and KUD managers, acknowledged by Sub-District Chiefs (3 Sub-districts). Socialization was held on December 9, 2005 and attended by 35 representatives of related groups.

Status:

7.3

New plantings since November 2005, have not replaced primary forest or any area required to maintain or enhance one or more High Conservation Values.

X or√

PT Mitra Austral Sejahtera has not replaced primary forest or any area required to maintain or enhance one or more High Conservation Values. Based on the company’s Plantation Concession issued through Decision of Land Agency Head of Sanggau District No. 400-56/IL-1999 dated January 8, 1999 on the Granting of Extension Concession the Purposes of Palm Oil Plantation located at Parindu, Bonti, Hulu and Kembayan Tayan sub-districts in the name of PT Mitra Austral Sejahtera with a total area of 20,000 hectares of 30,000 hectares reserved area, the concession of PT MAS is located within Other Use Area (APL) in accordance with the Spatial Plan of West Kalimantan Province The company management has declared to the community that the company will preserve and will not cultivate palm oil crops in areas that have been identified as HCV (MAS-3 Estate’s Statement Letter dated May 1, 2011). Local people / Indigenous Figures joined in Satlak were directly involved in the identification process of areas where palm oil planting is not allowed in accordance with the agreement.


ASSESSMENT REPORT

SPO – 4006a.5 Page 41


7.5

No new plantings are established on local peoples’ land without their free, prior and informed consent, dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions.

X or√

Available EIA documents as approved by the Central EIA Committee letter the Department of Forestry and Plantations, No: 242/Menhutbun-II/2000, on March 23, 2000. The company has conducted studies of social impact, but until the implementation of Stage-1 is still in draft form. SIA mentioned in the draft document;

a. Positive Impacts 1. Direct Impacts

- Significant local people are employed by the company. - Emergence of livelihood sources. - Increased revenue sources and incomes of the villagers. - Increased productivity, value and status of land (impact of KKPA plasma

development). - Increased accessibility and mobility of people, goods and services. - Public’s positive perception to the company.

2. Indirect - The increasingly growth of local businesses - Increased cash flow and fund circulation in the surrounding villages. - Increased purchasing power of the local people.

b. Negative Impacts; 1. Direct impacts;

- Reduced size of public lands, - Public’s negative perception to the company, - Dispute/conflict

2. Indirect impacts and Accumulation - Clean water problem, - Impaired traditional value system of mutual cooperation,

- Change in lifestyles of rural people. Based on the Plantation Development Realization Report of the socialization of new land opening has been conducted in July to September 2010 for Bonti and Kembayan Sub-districts, and unit has done socialization of new land opening in March 2011 (Sedae, Canal, Mua, Kampuh, and Tapa sub-villages). Based on interviews with residents of RT Pinsam the company’s new plantation opening process also involved te Satlak Team consisting of Sub-village Chiefs, Indigenous leaders, KUD Sekayam Jaya Manager and Village officials as officers who perform verification of the land to be opened.

7.6

Local people are compensated for any agreed land acquisitions and relinquishment of rights, subject to their free, prior and informed consent and negotiated agreements.

X or√

There is a Land Compensation Negotiation Process procedure No. 501/MAS-Doc 01/11 dated 8 April 2011 in which contains a flow chart of compensation process involving amicable deliberation and meetings with Muspika (Task Force). Documented process and agreement of land acquisition for new plantation area are maintained in MAS 3 Estate’s office and RSPO secretariat office in MAS 1 Estate.


ASSESSMENT REPORT

SPO – 4006a.5 Page 42 Prepared by Mutuagung Lestari for Ladang Panjang Factory – PT Bahari Gembira Ria

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

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

During the Surveillance-1 assessment, there were two (2) Major Nonconformities were assigned against Compliance Indicator; two (2) Minor Nonconformities were assigned against Compliance Indicator and six (6) opportunities for improvement were identified. Further clarification of the discrepancy was explained and corrective actions taken by the company is provided in this section. The company set up a corrective action was reviewed by the MUTU of received and corrective action undertaken to cover all discrepancies must be verified during the next assessment.

No. Ref Std Finding Grade Area Time

Limits Corrective Action

Request Observation and Date Status

Closing Date

2013.01 Major 2.1.1 Major 5.3.2

Compliance with Laws and Regulations. There are several legal requirements that not comply. There are found hazardous waste (used oil / batteries/cloth rags) stored exceed the storage time 90 days/180 days. 1,520 liters of used oil, 2 pieces batteries used and other waste. While, CV Surya Jaya Logam have appointed to collect hazardous waste by agreement between the company and the licensed collector on May 24, 2013. It is not complied with PP No. 18 Year 1999 about hazardous waste management.

Major Mill 23 July 2013

Companies must comply with all laws and regulations

27 May 2013 Hazardous waste (used oil and batteries) has been sent to a licensed collector on May 24, 2013. There is delivery manifest hazardous from mill to Ware house of waste collector (CV Surya Jaya Metal). In the shipping manifest listed 4 drums of oil used and 2 pieces batteries used have been transported by truck number BM MK 8535.

Closed 27 May 2013

2013.02 Major 4.6.4

Waste Management of Pesticides Packaging Used. There are found pesticide packaging are not cleaned before turned over to a licensed hazardous waste warehouse in mill

Major mill 23 July 2013

Company must manage pesticide packaging waste so not pollute the environment in accordance with the procedures and

27 May 2013 All pesticide packaging waste in the mill warehouse has been cleaned in accordance procedures. Used packaging such as Kenlon, Ally, Agenda, Basta, and Metafuron washed in

Closed 27 May 2013


ASSESSMENT REPORT


No. Ref Std Finding Grade Area Time

Limits Corrective Action

Request Observation and Date Status

Closing Date

regulations. BSS (Block Spraying System), then handed back to the mill warehouse. The washing documentation is available.

2013.03 Minor 4.7.6

Evidence of compliance with occupational health and safety program and first-aid box in the workplace.

a. The inspection results, found one hydrant hose does not work properly when used in fire fighting simulation.

b. Inspection in mill, there is no P3K Box in the work place area

Minor Mill Surveillance 2

a. The Company should ensure fires equipment is well function.

b. Companies must ensure the availability of P3K in work place and monitored according to the procedure

a. Fire hydrant hose has been replaced with a new hose so it functions properly.

b. P3K box is available in work place.

Closed 27 May 2013

2013.04 Minor 4.7.3

Risk Analysis From Observations found workers who smoke when they painting in the hopper (work area) not in the smoking area.

Minor Mill Surveillance 2

Companies must ensure all employees implement occupational Health and Safety

27 May 2013 The company has made no-smoking signs in certain areas and aim to employees and contractors to ensure and affirm the prohibition of smoking in certain places and give sanctions (recording evidence/ documentation are available).

Closed 27 May 2013


ASSESSMENT REPORT


3.5.2 Identification of Findings, Corrective Actions and Observations at S-2 Assessment

During the Surveillance-2 assessment, there were two (3) Major Nonconformities were assigned against Compliance Indicator; two (2) Minor Nonconformities were assigned against Compliance Indicator and one (1) opportunities for improvement were identified. Further clarification of the discrepancy was explained and corrective actions taken by the company is provided in this section. The company set up a corrective action was reviewed by the MUTU of received and corrective action undertaken to cover all discrepancies must be verified during the next assessment.

CAR No

Ref Std Finding Grade Area Time

Limits Corrective Action Observation and Date Status

Closing Date

2014.01 Major 2.1.1

Compliance over the applicable and related regulation’s requirement Based on interview with spraying officer in division I LPE, its know that the PPE, uniforms are stored in personnel’s house. This is not inline with Permenaker No.03 in 1986 regarding occupational health and safety requirements in pesticide management plance.

Major Estate 23 July 2014

Company should be able to present its compliance evidence towward the applicable regulation.

Root cause: There is no BBS house. Corrective action: BGR has made BSS house to store spraying tools in division 1 and 2. Preventive actions: BSS house has been provide, and personnel from Division I & II have been stored their PPE and uniform in this BSS house. Auditor conclusion: The presented evidence can be accepted and fulfilled the requirement.

Closed 3 July 2014

2014.02 Minor 2.1.1

Information regarding law and regulation’s requirement that should be complied BGR has the list of law and regulation’s requirement that should be complied,

Minor PT BGR S-3 Company must be able to present list of regulation and law’s requirement that should be fulfilled, like national regulation,

Root cause: Not yet updated to list of law/ regulation Corrective action:

Closed 3 July 2014


ASSESSMENT REPORT


CAR No



Closing Date

however there are some regulations that haven’t been stated on this list, such as government regulation No 27 in 2012, government regulation No. 50 in 2012, and PerMenLH No. 14 in 2013.

regional and local regulation.

Updating the latest regulation into list of law Preventive actions: actively seek latest regulation, which related to plantation activity. Auditor conclusion: The presented evidence can be accepted and fulfilled the requirement.

2014.03 Major 4.6.1

Registered and licensed agrochemical BGR can’t present the applicable permit for some agrochemical like Meta Prima, Agenda and Lancer.

Major Kebun 23 July 2014

Company should be able to present the evidence that the entire agrochemicals in PT. BGR are registered and licensed.

Root cause: Distribution permit over the agrochemical is already expired. Corrective action: BGR has presented the distribution permit for some agro chemical type, like Meta Prima (RI.01030120081897); Agenda (RI.04110119971366); Lancer (RI.01010120041979) Preventive actions: Conducting coordination with Purchasing Jakarta and

Closed 3 July 2014


ASSESSMENT REPORT


CAR No



Closing Date

agrochemical supplier. Auditor conclusion: The presented evidence can be accepted and fulfilled the requirement.

2014.04 Major 4.6.4

Agrochemical waste is disposed in accordance to regulation. BGR can’t present the evidence that hazardous waste collector (PT. Dame Alam Sejahtera) for used pesticide package has had the permit from related institution.

Major PT BGR 23 July 2014

Company should be able to present the evidence that hazardous waste collector has had the permit from related institution.

Root cause: PT. DAS not sending the permit letter for colecting hazardous waste Corrective action: BGR has proved that PT DAS has had the recommendation for transporting hazardous waste including the contaminated used pesticide package from ministry of environment that inline with letter No. B-11185/Dep.IV/LH/PDAL/10/2013 on 8th October 2013. Preventive actions: Conducting coordination with collector regarding the permit issue. Auditor conclusion: The presented evidence can

Closed 3 July 2014


ASSESSMENT REPORT


CAR No



Closing Date

be accepted and fulfilled the requirement.

2014.05 Minor 5.2.1

Socialization over protected species Based on interview with personnel in division I, LPE its known that personnel have not understood the existence of protected wildlife in plantation area.

Minor Estate S-3 BGR should be able to present the evidence that personnel have understood the protected wildlife.

Root cause: Lack of socialization for personnel regarding the protected wildlife. Corrective action: BGR has presented the evidence for socialization on HCV area and protected wildlife, which was conducted on 23rd and 24th May 2014 in Division 1 and 2 LPE. Preventive actions: Conducting regular socialization on HCV. Auditor conclusion: The presented evidence can be accepted and fulfilled the requirement.

Closed 3 July 2014


ASSESSMENT REPORT


3.5.3 Opportunity for Improvement at Surveillance -2 Assessment

No Ref.Std Descriptions

1 Minor 4.3.4

BGR has had water system for plantation area, especially in peat area. Based on field visit, its known that the water level for peat is between 20 and 30 cm from land and company has conducted the evaluation to decrease the high/level of peat water surface. BGR has an opportunity to take further actions over the evaluation on peat water surface level.

3.5.4 Noteworthy Positive Components at Surveillance -2 Assessment

No Ref Std

Descriptions

1 Has had the RSPO certificate in 2012

2 Company’s commitment to implement the sustainable palm oil management principles.

3 Company has provided sufficient facility for personnel.

4 Has 5.797 Ha of plasma plantation scheme.


ASSESSMENT REPORT


3.6 Summary of Arising Issues from Public, Management and Auditor Response Date of Public Consultation: 20 May 2014

Public Issues (Institution/ NGO/Community)

Management Responses Auditor Responses

Environment agency in Muaro Jambi District (Yonizar)

Company has submitted regular report, which related to environment management such as RKL and RPL every 6 months, as well as three-month waste management report.

Company has the related environment permit such as land application permit and temporary landfill permit for hazardous waste.

BGR has conducted evaluation over water quality in 4 river spots, the quality of boiler emission, quality of generator emission and quality over air ambient.

There is no issue on environment pollution, because BGR not throwing its waste to river.

Will be sustained by sending report inline with the applicable regulation and law

LA permit No. 301 in 2011 will expire on 12nd July 2016 and temporary landfill permit for hazardous waste No. 246 in 2009 will expire on 10th June 2014. Currently under extension process.

Waiting for analysis result from BLHD of Jambi province.

Will conducting management that inline with the applicable regulation.

BGR has complied the criteria 5.1

BGR has complied the criteria 5.3 and 5.6

BGR has complied the criteria 4.4 and 5.6

BGR has conducted proper environment management.

Labour Service of Muaro Jambi District Syafrizal

Company has complied its responsibility to regularly obey manpower related regulation, such as mandatory manpower report, P2K3 report, and work accident.

Working tools and work place have been periodically evaluated by manpower agency.

BGR has implemented the payment inline with the applicable provincial minimum wage.

Company has the worker union/ SPSI and has been registered in social agency.

PT BGR personnel have been registered in Jamsostek scheme.

Will be reported in accordance to the applicable regulation

Will be sustained and be improved

Provincial minimum wage 2014 has been applied since signed by Jambi governor.

Regarding to manpower regulation will always coordinate with disnaskertrans of Muaro Jambi district.

Comply government regulation, which related with manpower regulation.







ASSESSMENT REPORT




Company has registered the P2K3.

PT BGR personnel have had SIO boiler and SIO for loading.

Forestry and Plantation Service Muaro Jambi District (Henri)

Company has complied its responsibility over regular report like plantation business development report every three-months.

FFB’s price based on decision from head of plantation agency of Jambi Province. FFB’s price is renewed every week.

Company has permits related to plantation such as plantation business permit, forest release permit and business permit.

Auditor for plantation business has conducted assessment over PT. BGR plantation business. However, the decision not decided yet.

BGR helps community’s road improvement and voluntarily gives grant to local government for local development.

Plantation business development report in plasma plantation has been submitted to plantation agency of Muaro Jambi district and Jambi province.

Always following FFB’s pricing decision every Thursday in plantation agency of Jambi Province in order to know the latest FFB’s price.

Road’s improvement/ production road in farmer group has been conducted every time there is a suggestion/ request from smallholder.

Business assessment has been conducted

Grant for Bandar Agung School.

A grant has been given to local government of Muaro Jambi amount Idr. 50.000.000 rupiah.






National Land Agency of Muaro Jambi District (Syamsuar)

Company has the HGU No 04 in 2003, which covers an area of 1.202,04 Ha.

Company should maintain the entire existing main stake (pillar).

BGR maintains company’s plantation for an area of 2.180 Ha.

Special officer from SKU personnel has been pointed for maintaining work

HGU request to BPN regarding the request for assessment by committee B



Village Cooperative Unit of Karya Mandiri / Villager of Trimulya Jaya Treasurer/ Ngatiman and chairman/purwanto)


ASSESSMENT REPORT




BGR conducting regular facilitation related to fertilization, harvesting and spraying.

BGR party informs Price every week.

There was an issue over trench washing in KT Margo Mulyo V and KT Sejahtera IV, and there was an agreement with company to conduct the trench washing.

There is no complaining over pollution.

BGR has conducted socialization related to environment issue, such as poisoning fish in river, etc.

Payment over FFB’s trade has been disbursed in time.

No problem over FFB’s acceptance weighing.

BGR has conducted socialization related to PPE utilization; however, the utilization is depending on smallholder.

Credit calculation has been agreed between company and smallholder.

BGR has implemented CSR activity such as road improvement.

Socialization on harvesting, fertilization and maintenance to smallholder will be improved.

Every time there is a new price over FFB, company will immediately share this information to smallholder. Smallholders’s representatives also take an active part (Mr. Anas)

Trench washing is under process, and shortly will be implemented.

No pollution.

Socialization for environment aspect (HCV area) will be improved.

Will be sustained and the payment will be in time.

Weighing result in LPF mill will be maintained.

PPE utilization will continue being socialized.

Have been well implemented and will be sustained.




BGR has conducted proper environment management.



BGR actively gives socialization on PPE utilization to plasma smallholder.


Village Cooperative Unit of Mitra Inti Sumber Makmur (Sugiono/head of KT Mingkung Jaya VII and Rokhim-Sadiran/head of KUD)

Payment over FFB’s trade will be disbursed in time.

BGR regularly conducted facilitation/ Bina Tani (Mr. Hasri). - Harvesting: ripe fruit criteria, fruit collection, and PPE

utilization. - Fertilization: informing type of fertilization that

suitable for field condition and the doze. - Spraying: type of pesticide for weed, the proper

spraying technic as well as its doze.

BGR gives grants like: road improvement, commemoration event, etc.

FFB’s payment always in time

Consistently will socializes the better cultivation technic

Company will consistently help smallholder to improve production road

FFB’s pricing and cost calculation will be improved.

Communication to smallholder and community will be sustained and be improved.





BGR will maintain and improve the good relationship.


ASSESSMENT REPORT




For payment mechanism, smallholders know their monthly harvesting result, if there is a difference then will be discussed. Until now, there is no serious problem.

Election of head of KUD through general election with a 3-years period.

The relationship between BGR and plasma smallholder is good.

Gender committee of PT. BGR (Ms. Jumai dah and Ms. Linda)

Over 2 years period, the commitee working well and gender committee’s acitivities are always supported by management.

There is an idea for celemrating event or commemoration day like for kartini day, and mother day that fully supported by company.

Will be improved especially for harmonious relation between personnel and their family

BGR is expected to keep gender committee’s role inline with its role and function.

Head of worker union (SPSI) (Bapak Suyanto)

Industrial relation between SPSI and company runs well.

There are some complaints that have been submitted to company. But there are no realization/ response yet. For instance, assistant can mutate personal without mutation letter, case pf speed boat operator that is transferred orally without mutation decision letter.

Lot of personnel doesnt received housing facility and still stay side by side with another famility within one roof.

Management should revise the annual bonus policy (currently only for 1 month salary)

The relationship with SPSI will be improved in the future.

For personnel transfer issue, it has been conducted properly and inline with the applicable regulation. Incase personal is mutated to other division, there will be a mutation letter but if personal is mutated within same division, there is no need for mutation letter.

For housing facility, actually there is a progress and housing facility is under construction process for housing type G2 is 10 units and for AME 5 units in LPE.

BGR is expected to maintain the good relation ship.


World Wild Found Indonesia (WWF)


ASSESSMENT REPORT




There is no issue from World Wild Found

Wahana Lingkungan Hidup (Walhi)

There is no issue from Wahana Lingkungan Hidup

Sawit Watch

There is no issue from Sawit Watch


ASSESSMENT REPORT


4.0 CERTIFIED ORGANISATION'S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Sign-off of Assessment Findings

Hereunder sign by management representative from inspected company to acknowledge a field assessment and agree for all content explained in this assessment report, included of non-compliance findings.

Signed on behalf of:

PT Bahari Gembira Ria

Mutuagung Lestari

Head of Plantation Sustainable Quality Management, Minamas Plantation

Lead Auditor

Mohamad Pirabaharan

Taufik Margani

5 July 2014

5 July 2014


ASSESSMENT REPORT


Appendix 1. List of Stakeholder Contacted in the RSPO Certification Process

No Institution/NGO/Community Address Phone/Email Form of Contact

Date of Contact

1 Mitra Inti Sumber Makmur village cooperative unit

Mingkung village - Interview 21 May 2014

2 Karya Mandiri village cooperative unit / villager of DesaTrimulya Jaya

Jaya village - Interview 21 May 2014

3 Head of National Land Agency of Muaro

Jambi District Muaro Jambi - Interview

20 May 2014

4 Head of Forestry and Plantation, Muaro


20 May 2014

5 Head of Manpower and Transmigration,

Muaro Jambi District Muaro Jambi - Interview

20 May 2014

6 Head of Environmental Agency, Muaro


20 May 2014

7 Gender committee of PT BGR PT.BGR - Interview 20 May 2014

8 Worker Union of PT BGR PT.BGR - Interview 20 May 2014

9 World Wild Found

Jakarta wwf-

[email protected]

Email 13 May 2014

10 Wahana Lingkungan Hidup

Jakarta [email protected],

[email protected]

Email 13 May 2014

11 Sawit Watch Jakarta [email protected] Email 13 May 2014







ASSESSMENT REPORT


Appendix 2. Assessment Program

DATE 19 - 22 May 2014

PROGRAM PROCESSES / CLAUSES TO BE AUDITED AUDITOR

TFK ARD ISY MR

Monday,19 May 2014

06.00 – 07.30 08.00 – 10.00 10.30 – 12.00

12.00 – 14.00

13.30 – 17.00

Jakarta Jambi Jambi – PT.BGR Opening Meeting & Review of previous assessment findings Lunch & Pray Public Consultation to Village Cooperative Unit of and Villagers

√ √ √ √ √

√ √ √ √ √

√ √ √ √ √

√ √ √ √ √

Tuesday,20 May 2014

08.00 – 12.30

08.00 – 12.00

12.00 – 14.00

14.00 – 16.00

16.00 – 17.00

Public Consultation to Government Institution Field Observation to Pondok Labu POM:

WWTP (IPAL), Waste management, Operational SYstem, K3 (OHS), Supply Chain

BREAK Continue field observation Document Review and field observation clarification

√ √ √

√ √ √

√ √ √

√ √ √

Wednesday,21 May 2014

08.00 – 12.30

12.00 – 14.00

14.00 – 17.00

Field Observation to Ladang Panjang Estate

Legal operational and Conservation Area

Worker facilities (housing, health clinic, clean water, etc)

Manuring, Spraying, Harvesting, best agricultural practices

Land Fire facilities, Storage, ect.. BREAK Continue checklist and audit finding preparation

√ √ √

√ √ √

√ √ √

√ √ √

Thursday,22 May 2014

09.00 – 10.30

12.00 …..

Closing Meeting PT.BGR JAMBI --JAKARTA

√ √

√ √

√ √

√ √


ASSESSMENT REPORT


Appendix 3. Glossary

AMDAL : Analisis Mengenai Dampak Lingkungan (Social and Environmental Impact Assessment)

APAR : Alat Pemadam Api Ringan (Fire Extinguisher)

APD (PPE) : Alat Perlindungan Diri (Personal Protective Equipment)

B3 : Bahan Beracun and Berbahaya (Hazardous Material Waste)

BLHD : Badan Lingkungan Hidup Daerah (District Environment Body)

BOD : Biological Oxygen Demand

BPN : Badan Pertanahan Nasional (National Land Agency)

CD : Community Development

CPO : Crude Palm Oil

CSR : Coorporate Social Responcibility

HACCP : Hazard Analysis Critical Control Point

HCV : High Conservation Value (Nilai Konservasi Tinggi)

HGU : Hak Guna Usaha. (Land Use Permit)

IUP : Izin Usaha Perkebunan. (Plantation Operation Licence)

IPAL (WWTP) : Instalasi Penyaluran Air Limbah (Wastewater Treatment Plant)

JAMSOSTEK : Jaminan Sosial Tenaga Kerja (Social Assurance of Labor)

K3 (OHS) : Keselamatan dan Kesehatan Kerja. (Occupational Health and safety)

KLH : Kementrian Lingkungan Hidup (Environment Ministry)

LC : Land Clearing

LPE : Ladang Panjang Estate

LPF : Ladang Panjang Factory

OER : Oil Extraction Rate

P2K3 : Panitia Pelaksana Keselamatan and Kesehatan Kerja ( Occupational Health and safety Guiding Committee)

PHT : Pengendalian Hama Terpadu (Integrated Pest Management)

PK : Palm Kernel

PKO : Palm Kernel Oil

PKS (POM) : Pabrik Kelapa Sawit (Palm Oil Mill)

PP : Peraturan Pemerintah (Government Regulation)

POM : Palm Oil Mill

RKL/RPL : Rencana Kelola Lingkungan/ Rencana Pemantauan Lingkungan (Environmental Management Plan/ Environment Monitoring Plan)

PSD : Plantation Services Departement

PSQM : Plantation Sustainability and Quality Management

SOP : Standard Operating Procedure

SP : Serikat Pekerja (Worker Union)

SPK : Surat Perjanjian Kerja (Minutes of Agreement)

TBS (FFB) : Tandan Buah Segar (Fresh Fruit Bunches)

UKL/UPL : Upaya Kelola Lingkungan/ Upaya Pemantauan Lingkungan (Environmental Management Efforts/ Environmental Monitoring Efforts)

rspo - roundtable on sustainable palm oil · 2014-11-02 · pt. mutuagung lestari assessment report...

Documents