RSPO CERTIFICATION ASSESSMENT PUBLIC SUMMARY REPORT

Transcription

1 of 42 RSPO CERTIFICATION ASSESSMENT PUBLIC SUMMARY REPORT PT. TÜVNORD Indonesia System Certification Management Has assessed PT. INTI INDOSAWIT SUBUR Muara Bulian Mill and Supply Base for Compliance to RSPO Principles and Criteria for Sustainable Palm Oil Production Date of assessment: October 11-14, 2011 Report Number: RSPO-PC Head Office System Certification Management Perkantoran Hijau Arkadia Tower F, 7 th Fl Suite 706 Jl. Let. Jend. TB Simatupang Kav. 88 Jakarta Indonesia Tel : Fax : Laboratory Division Jl. Jababeka XVII E Blok U No. 27B Kawasan Industri Jababeka I Cikarang Bekasi Indonesia Tel: Fax : Branch Office Intiland Tower 11 th Fl, Suite 1E Jl. Panglima Sudirman Surabaya Indonesia Tel : Fax : President Director: Mr. Robert Napitupulu rnapitupulu@tuv-nord.com Website: or IIS-MB FINAL of 42

2 : 2 of 42 List of Contents 1 Scope of The Certification Assessment Type of Assessment (Mill, Estate and Mill, etc.) Location, mill, and or hectare statement Description of Supply Base (Fruit Sources) Description of Mill(s) Description of Plantation (Fruit Sources) Date of Plantings and Cycle Age Profile of Palms - Planted Area (Ha) Time-bound Plan (for other management units and justifications) Other Certifications Held (ISO, etc.) Organizational Information/Contact Person Tonnages Certified Assessment Process Assessment Methodology (Program, Site Visits) General Overview Assessment Agenda Date of Next Surveillance Visit Lead Assessor/Assessment Team Lead Assessor: Anita Masduki Assessment Team Members Certification Body Outline of How Stakeholder Consultation Was Managed Summary List of Contacted Stakeholders Assessment Findings Summary of the Findings by Criteria Identified Non Conformances and Noteworthy Positive Components Detail of Non Conformity Resume of Audit Results Issues Raised by Stakeholders Certified Organization s Acknowledgement of Internal Responsibility Formal Sign-off of Assessment Findings IIS-MB FINAL of 42

3 List of Figures : 3 of 42 Figure 1-1 Geographical Map of Tungkal Ulu Mill and Plantation... 5 List of Tables Table 2-1 Audit Schedule Table 2-2 List of Stakeholder surrounding Muara Bulian Plantation Table 3-1 Summary of Findings by Criteria Table 3-2 Resume of Audit Results Attachment Attachment A List of Abbreviation IIS-MB FINAL of 42

4 : 4 of 42 1 Scope of The Certification Assessment 1.1 Type of Assessment (Mill, Estate and Mill, etc.) The assessment to the Palm oil mill and plantation owned by PT. Inti Indosawit Subur, located at Singoan / Bukit Sari / Bulian Jaya Village, Muara Bulian / Pemayung District, Batang Hari Regency, Jambi Province, Sumatera- Indonesia per National Interpretation of RSPO Principle and Criteria for Sustainable Palm Oil Production - Republic of Indonesia(RSPO Indonesian National International Working Group <INA-NIWG> ver. May 2008 Standard). 1.2 Location, mill, and or hectare statement Name of Mill and Plantation Location Coordinates Muara Bulian Mill and Plantation See Figure 1-1 below. Singoan / Bukit Sari / Bulian Jaya Village, Muara Bulian / Pemayung District, Batang Hari Regency, Jambi Province N N E E 1.3 Description of Supply Base (Fruit Sources) Description of Mill(s) Name of Mills CPO Annual Output (ton) PK Mill Capacity (ton/hour) Muara Bulian Mill 51,094 12, This data were based on budgeted production in To produce this amount of CPO, the mill received FFB from Muara Bulian Plantation, Smallholders (Plasma), and out-growers Description of Plantation (Fruit Sources) See the description of supply base (fruit sources) as below: Name of Plantation Total Area (Ha) Planted FFB Production (ton/year) Muara Bulian Plantation 1,856 1,772 44,469 Plasma 4,710 4, ,973 Out-grower ,205 Total FFB supplied to the mill 226,100 Above data were based on budgeted production in 2012 IIS-MB FINAL of 42

5 : 5 of 42 Map of Muara Bulian Mill and Plantation Figure 1-1 Geographical Map of Muara Bulian Mill and Plantation IIS-MB FINAL of 42

6 : 6 of Date of Plantings and Cycle Age Profile of Palms - Planted Area (Ha) Age (Years) Planted Area (Ha) , TOTAL 1, Time-bound Plan (for other management units and justifications). Below is the estimated time-bound for certification of other plantationswithin the PT. INTI INDOSAWIT SUBUR (IIS). The company will use the experience obtained in the main assessment to ensure that the other management units conform to the RSPO principles and criteria.progress of this plan of time-bound certification will be verified and reported in subsequent surveillance visits. a. Time-bound plan for mill(s) Name of Mill Address Buatan I Delik & PangkalanKerinciVillage, Bunut Langgam District, Pelalawan Regency, Riau Buatan II Delik & PangkalanKerinciVillage, Bunut Langgam District, Pelalawan Regency, Riau Ukui I Ukui II Ukui Village, Ukui District, Pelalawan Regency, Riau Ukui Village, Ukui District, Pelalawan Regency, Riau Tungkal Ulu Pulau Pauh/ Penyabungan/ MerlungVillage, Tungkal Ulu District, Tanjung Jabung Regency, Jambi Muara Bulian Singoan/ Bukit Sari/ BulianJaya Village, Muara Bulian/ Pemayung District, Batang Hari Regency, Jambi Topaz Petapahan Village, Tapung District, Kampar Regency, Riau Taman Raja Lubuk Bernai/ Kampung Baru/ Pelabuhan Dagang/ Pematang Pauh Vilage, Tungkal Ulu District, Tanjung Jabung Regency, Jambi Segati Langkan/ Penarikan/ Tambak/ SotolVillage, Langgam District, Pelalawan Regency, Riau CPO Production in 2012(ton/y) PK Certified 72,448 18, September ,609 18, September ,382 18,278 1 March ,505 20,447 1 March ,262 15, ,094 12, ,600 13, ,254 18, ,936 19, Timebound for certification IIS-MB FINAL of 42

7 : 7 of 42 Tanah Datar Aek Nabara Tanah Datar Petatal Village, Talawi District, Asahan Regency, North Sumatera S1-S3 / Sukadame Village, Bilah Hulu / Kota Pinang District, Labuhan Batu Regency, North Sumatra Teluk Panjie Teluk Panjie Village, Kampung Rakyat District, Labuhan Batu Regency, North Sumatra Peranap Bungo Tebo Tanjung Selamat Simelinyang/ Pauh Ranap/ Sengkilo Village, Peranap District, Indragiri Hulu Regency, Riau Tuo Sumai / Sungai Rambai Village, PWK Sumai / Tebo Ulu District, Bungo Tebo Regency, Jambi Kampung Padang Village, Bilah Hilir District, Labuhan Batu Regency, North Sumatra Gunung Melayu I RahuningVillage, Bandar Pulau District, Asahan Regency, North Sumatra Gunung Melayu II GontingMahalaVillage, Bandar Pulau District, Asahan Regency, North Sumatra Negri Lama I Negri Lama II Negri Lama Seberang Village, Bilah Hilir District, Labuhan Batu Regency, North Sumatra Negri Lama Seberang Village, Bilah Hilir District, Labuhan Batu Regency, North Sumatra 28,737 8, ,534 11, ,325 9, ,287 12, ,986 9, ,580 12, ,200 10, ,557 7, ,084 9, ,288 9, b. Time-bound plan for plantation(s) Name of Plantation Address Total Area (Ha) Planted Budgeted FFB Production in 2012 (ton/year) Timebound for certification Buatan Ukui & Soga Buatan (Plasma) Ukui (Plasma) Buatan (KKPA) Delik & Pangkalan Kerinci Village, Bunut Langgam District, Pelalawan Regency, Riau Ukui Village, Ukui District, Pelalawan Regency, Riau Kerinci Kanan, Pangkalan Kerinci, Dayun Village, Siak & Pelalawan Regency, Riau Ukui & Lubuk Batu Jaya District, Pelalawan & Inhu Regency, Riau Kerinci Kanan, Pangkalan Kerinci, Dayun District, Siak & Pelalawan Regency, Riau 5,781 5, ,914 Certified on 16 Sept ,731 9, ,899 Certified on 1 March ,946 10, ,061 Main audit: 5-9 Dec ,536 13, ,199 Main audit9-24 Dec ,500 1,500 27, IIS-MB FINAL of 42

8 : 8 of 42 Tungkal Ulu (Plasma) Renah Mendalo, Merlung, Muara Papalik District, Tanjung Jabung Barat Regency, Jambi 10,277 10,277 94, Muara (Plasma) Bulian Maro Sebo Ilir District, Batanghari Regency, Jambi 4,710 4, , Muara Bulian (KKPA) Topaz & Seed Garden Taman Raja & Badang Ukui (KKPA) Maro Sebo Ilir District, Batanghari Regency, Jambi Petapahan Village, Tapung District, Kampar Regency, Riau Lubuk Bernai / Kampung Baru / Pelabuhan Dagang / Pematang Pauh Village, Tungkal Ulu District, Tanjung Jabung Regency, Jambi Ukui & Lubuk Batu Jaya District, Pelalawan & Inhu Regency, Riau 2,428 2,248 37, ,354 4, , ,077 8, , ,660 1,660 37, Segati Langkan / Penarikan / Tambak / Sotol Village, Langgam District, Pelalawan Regency, Riau 6,485 3,867 86, Penarikan Gondai & Pangkalan Sarik / Baru Village, Langgam / Siak Hulu District, Pelalawan / Kampar Regency, Riau 7,666 6,145 71, Penarikan (KKPA) Pangkalan Sarik / Baru Village, Langgam / Siak Hulu District, Pelalawan / Kampar Regency, Riau , Gunung (KKPA) Sahilan Gunung Sahilan Village, Lipat Kain District, Pelalawan Regency, Riau 4,322 4, , Bahilang Bahilang Village, Tebing Tinggi District, Serdang Bedagai Regency, North Sumatra 1, , Tanah Datar Aek Nabara Tanah Datar Petatal Village, Talawi District, Asahan Regency, North Sumatra S1-S3 / Sukadame Village, Bilah Hulu / Kota Pinang District, Labuhan Batu Regency, North Sumatra 1,062 1,006 23, ,830 4, , Teluk Panjie Teluk Panjie Village, Kampung Rakyat District, Labuhan Batu Regency, North Sumatra Peranap Simelinyang / Pauh Ranap / Sengkilo Village, Peranap District, Indragiri Hulu Regency, Riau 4,656 3, , ,215 3,660 97, Bungo Tebo Tuo Sumai / Sungai Rambai Village, PWK Sumai / Tebo Ulu District, Bungo Tebo Regency, Jambi 2,652 2,551 49, Peranap (Plasma) Simelinyang / Pauh Ranap / 5,142 5, , IIS-MB FINAL of 42

9 : 9 of 42 Sengkilo Village, Peranap District, Indragiri Hulu Regency, Riau Bungo (Plasma) Tebo Tuo Sumai / Sungai Rambai Village, PWK Sumai / Tebo Ulu District, Bungo Tebo Regency, Jambi 5,914 5,914 90, Tanjung Selamat Pangkatan Sentral & Batu Anam Pulau Maria Negri Lama Kampung Padang Village, Bilah Hilir District, Labuhan Batu Regency, North Sumatra Sennah Village, Bilah Hilir District, Labuhan Batu Regency, North Sumatra Gonting Mahala Village, Bandar Pulau District, Asahan Regency, North Sumatra Rahuning Village, Bandar Pulau District, Asahan Regency, North Sumatra Negri Lama Seberang Village, Bilah Hilir District, Labuhan Batu Regency, North Sumatra 3,885 3,854 75, ,336 3,716 93, ,414 8,312 77, ,302 2,057 43, ,011 11,736 98, Aek Kuo Aek Korsik Village, Aek Natas District, Labuhan Batu Regency, North Sumatra 2,588 2,542 63, Other Certifications Held (ISO, etc.) Certification Name Certification Num. Date of Certification Valid until ISO 9001:2008 for Production and Distribution of Palm Seeds ISO 14001:2004 for Oil Palm Mill and Plantation ISCC System for Buatan I Mill ISCC System for Buatan II Mill ISCC System for Ukui I Mill ISCC System for Ukui II Mill ISCC System for Muara Bulian Mill ISCC System for Tungkal Ulu Mill RSPO Certification for Buatan I & II Mill, Pelalawan, Riau RSPO Certification for Ukui I and II Mill and Supply Base, Pelalawan, Riau Company Performance Rating Program in Environmental Management for IDO05 / DE-B-BLE-BM DE-B-BLE-BM DE-B-BLE-BM DE-B-BLE-BM DE-B-BLE-BM DE-B-BLE-BM CU-RSPO SPO Rating: Blue Year 2009 Year 2010 IIS-MB FINAL of 42

10 0 of Organizational Information/Contact Person Organizational Information Principle Contact Person Position Business Address Group Name (If applicable) Ms. Asrini Subrata Stakeholder Relations Manager PT. Inti Indosawit Subur Jl. MH Thamrin No. 31, Indonesia. Asian Agri Office Telephone Number Mobile Telephone Number - Fax address Web site asrini_subrata@asianagri.com Tonnages Certified Name of Mill Location Muara Bulian Mill Tonnages Certified Singoan / Bukit Sari / Bulian Jaya Village, Muara Bulian / Pemayung District, Batang Hari Regency, Jambi Province, Sumatera-Indonesia CPO Production (ton) 10,450 PK Production (ton) 2,424 2 Assessment Process 2.1 Assessment Methodology (Program, Site Visits) General Overview The assessment was carried out by referring to TÜV NORD Indonesia Certification Procedure, PRSPO- TNI-01 Rev. 0, dated This procedure described the assessment processes, which consist of several stages, such as contract review and offer preparation, audit preparation, certification audit, certificate issuance, and surveillance audit. Audit preparation included off site review of client document s such as RSPO manual, procedures, and working instructions. This preparation was conducted on July 4-6, Based on this review the auditors were able to perform the audit schedule for pre audit. Pre audit was required to assess the client s readiness toward the certification audit. This includes review of management system documentation and implementation on site.pre audit was performed July 18-20, Based on findings and recommendation from pre audit, auditor team will ask client to prepare IIS-MB FINAL of 42

11 1 of 42 correction and its evidences, and when it is confirmed the auditor will issue notification for certification audit to RSPO Executive Board to be published at RSPO website. The certification audit was conducted on October 11-14, 2011 for both Muara Bulian mill and plantations.the auditor team carried out field and office assessments of compliance for all the RSPO principles and criteria. Common systems were identified and specific evidence was recorded. Interview with managers and workers were conducted both for plantation and mill Assessment Agenda Main assessment or certification audit was performed on October 11-14, 2011 and was led by Mrs. Anita as lead auditor and was assisted by Mr.Haryadi as agrocultur expert and Mr. Ujang Sehabuddin as social expert. The audit schedule is as below. Table 2-1 Audit Schedule Date Location P&C Main Activities Day Muara Bulian Mill Office Opening meeting. Introduction by team leader. Introduction of team members and assessment agenda. Presentation by Group Manager (Plantation and Mill). P 1.1, 1.2, Full document review: P 2.1, 2.2, 2.3 Centralized Documentation Audit for both mills and plantation. P 3 Completion of the checklist. Review and documentation of evidence. All aspects of RSPO P&C s. All the general documents and legal compliances verification. Interview and discussion with operational managers and executives. Legal department representative, training manager, Verification and discussion on partial certification issues. Day Muara Bulian Plantation P 4.1, 4.2, 4.3, 4.4, 4.5, 4.6, 4.7, 4.8, P 5.1, 5.2, 5.3, 5.4, 5.5, 5.6 P 6.2, 6.3, 6.4, 6.5, 6.6, 6.8, 6.9, 6.10, 6.11 Field Operations Inspections Herbicide application program. Harvesting sites and efficiency, fertilizing operations, SOP s. Soil maps, land preparation, ground cover, IPM, Soil erosion. First aiders and boxes, field observations of all operations. Worker interviews. OSH. Sexual, religious, racial harassment.pay and contracts. Child labor. First aid. Awareness. Road maintenance. Run off. POME and EFB application site verification and records HCV s Identification. Management plans. Environmental Impact Assessments. Implementation. IIS-MB FINAL of 42

12 2 of 42 Riparian zones. Day Muara BulianMill P 4.1, 4.4, , 4.8 P 5.3, 5.4, 5.6 P 6.5, 6.6, 6.7, 6.9, 6.10 Width. Current and future management. Non maintenance regimes. Local communities Contributions made. Employment opportunities. Social impacts. Complaints procedures. Water management. Water courses. Water monitoring Social Impact Assessments New planting. Zero burn Mill Operation Mill SOP s. Safe working environment. Gen sets. Walk ways. Signs. EFB. POME treatment. Emissions. Mass balance. Diesel tanks. PPE. Fire extinguishers. First aiders and boxes. Fuel and water usage. Workshops. Oil traps. Safe working environment. PPE. Diesel tanks. Day Day Assessor Team Muara BulianOffice P 1.1, 1.2, Muara BulianOffice P 2.1, 2.2, 2.3 P 6.1, 6.2, 6.3, 6.4, 6.5, 6.6, 6.8, 6.9, 6.10, 6.11 OSH Committee. Training. Management structure. First aiders. Worker interviews. OSH. Sexual, religious, racial harassment. Pay and contracts. Chemical stores. Storage. MSDS leaflets. Herbicide mixing areas. PPE. Ventilation. Security. Waste Treatment Interviews with householders. Inspection of water discharge points. Water improvement plans. Waste disposal Energy Eficiency. Energy use and use of renewable energy. Stakeholder Meeting Discussion with stakeholder to have feedback from them and discuss the result with management representative at closing meeting. Issues to be raised were: Contributions made by company, employment opportunities, social Impact, complaints and grievance, land conflict. Closing Meeting Chaired by the assessment team leader. Presentation of findings by the assessment team. Questions and answers. Final summary by team leader. IIS-MB FINAL of 42

13 3 of Date of Next Surveillance Visit The surveillance audit will be scheduled later on, with at least nine (9) months up to one (1) year after the issuance of certificate. 2.3 Lead Assessor/Assessment Team Lead Assessor: Anita Masduki Qualification Compliance Educational Background Working Experience Chemical Engineer, Bandung Institute of Technology-Indonesia, passed 1987 Diploma of Biological Treatment Management, Name of University etc. Hiroshima University- Japan, Diploma of Environmental Management, Institute of Environmental Management and Assessment, London- United Kingdom, 1999 Magister of Social Education, Ibnu Khaldun University, Bogor-Indonesia, Doctoral Program of Social Education, Ibnu Khaldun University,Bogor-Indonesia, 2010-now :Assessment the environmental impact for several industries of pulp and paper, wood product, pharmacy, at Java, Sumatera, and Kalimantan 1996:Cleaner Production Division for GTZ-Germany and Environmental Impact Control Agency - Indonesia) and Swiss Contact; responsible for research and develop program to integrate cleaner production in the strategic planning of industrial development program, including identifying candidates for implementing cleaner production program in Indonesia. The project include of information dissemination, assist on pilot projects, develop guidance manual for cleaner production integration, develop cleaner production training workshops, deliver training for trainer, etc. This project based on social services provided by GTZ- Germany and Environmental Impact Control Agency of Indonesia as Awareness for Indonesian Cleaner Production Program :Global Climate Division of State Ministry of Environment, Jakarta and World Bank Washington; responsible for preparing Investment Project Proposal for Ozone Depleting Substances Phaseout in Indonesia to be granted by Montreal Protocol Multilateral Fund through World Bank. This project focused on research in identifying industries as candidates for investment project. The project covered dissemination of information, assist on pilot projects, develop guidance manual for cleaner production integration, develop investment project proposal, delivered training, workshops for trainer, public training, etc :Audit and consultancy experiences for more than 80 companies for ISO 9001, ISO 14001, OHSAS 18001, SA 8000, since 1996 up to 2011 in wide range of audit scope, such as plantations, oil and gas, pulp and paper, electronic manufacturing, school and university, contractors, etc. Yes (Y) Y RSPO Training Certified RSPO Lead Auditor Training by Wild Asia, May 2011, Kuala Lumpur, Malaysia Y Other Training Experience related to RSPO ISO9001:2000 Advanced Lead Auditor Training Course, by SGS International Certification Services, 2002, Jakarta-Indonesia Certified Auditor Training of Environmental Management System (ISO 14001:1996) EARA - RIET - REDECON Jakarta Occupational Safety and Health Audit Scheme (OSHAS) 18001, SGS-Jakarta 2002 Having experiences in environmental impacts assessment industries RSPO to date (Jan-Des 2011) 3 x pre-assessments in Indonesia (RSPO P&C) 10 x main assessments (Indonesia and Germany) for more than 60 of various Y Y IIS-MB FINAL of 42

14 4 of Assessment Team Members RSPO REQUIREMENT ASSESSOR QUALIFICATIONS COMPLIANCE Fluent in main local languages and English. Sudarmadji (SD) Ujang Sehabudin (US) Citizen of Indonesia, fluent in English Yes Field working experience in the palm oil sector, orademonstrable equivalent. Haryadi (HAR) More than 10 years working experience in palm oil plantation Yes Good agricultural practices(gap), integrated pestmanagement(ipm), pesticideand fertilizer use. HAR US More than 10 years working experience in oil palm plantation which includes GAP, IPM, pesticide and fertilizer use Yes Health and Safety assessmenton the farm and inprocessingfacilities.(for example OHSAS18001 oroccupational.healthand safetyassurancesystem). SD Completed training as Lead Auditor/Internal Auditor Sustainable Palm Oil by Indonesia Palm Oil Board and KAN (National Accreditation Committee) Yes Workers welfareissues andsocial assessmentexperience.(for example withsa8000 orrelated social or ethicalaccountability codes). Anita Masduki (AM) US Having experience in SA 8000 assessment in 2 (two) companies in Indonesia, in 2009 Having experience in CSR project as assessor for oil palm company over the past 3 years. Yes Yes AM More than 15 years for preparing the environmental impact assessment and ISO Preparing ISO for plantations, contractors, power plant, etc. Yes Environmental and ecologicalassessmenting.(for exampleexperience with organicagriculture, ISO orenvironmental managementsystems). HAR Doctorate in Plantation Ecology with considerable experience in several areas of oil palm plantation activities, such as expert auditor in RSPO Implementation, ISO 14000, feasibility studies, and had carried out research in Plantation Best Management Practices. Completed training in EMS course for ISO 14001:2004 and has experience in oil palm plantation waste management, disposal of EFB and fertilizer packaging and environmental impact on employees housing complexes. Member of the team involved in RSPO certification assessment of PT. London Sumatra Indonesia, Tbk. in Yes Economic issues US Audit ISO 14001:Palm oil and plantation company 2004 version and was involved as auditor training in oil palm and plantation company against the RSPO criteria Yes IIS-MB FINAL of 42

15 5 of Certification Body is a subsidiary of the German TÜV NORD Group. Our company is a market leader in Indonesia for inspection, testing and certification services. Through more than 800 clients, we offer not just a high added value service but also the trust and confidence embedded in our issued certificates / reports. We satisfy not only our direct customers but also other stakeholders, like regulators and interested society including NGOs, through our competent auditors, inspectors and analysts., under its HQ in Germany, is a member of International Accreditation Forum (IAF) and accredited by DAR German and by the Indonesian Accreditation Committee (KAN). Services provided by the Strategic Business Unit Systems Certifications are: Food Safety Management System ISO 22000, Information Security Management System ISO 27001, Social Accountability SA 8000, Food Hygiene HACCP, Medical Device Directive MDD, ISO 13485, Occupational Health and Safety OHSAS 18001, Product Certification: GS-Mark, CE-Mark, SNI Mark, Inspection for ISPS Code, Clean Development Mechanism (CDM) Validation & Verification, British Retail Consortium, BRC Issue Outline of How Stakeholder Consultation Was Managed Summary As part of document review, auditor team has reviewed list of local stakeholders provided by PT.Inti Indosawit Subur (IIS). The company has identified all relevant stakeholders and they were invited in the stakeholders meeting which was scheduled regularly once in a year, according to Information Request and Response Procedure (Prosedur Permintaan Informasi dan Tanggapan),AA-GL R1, dated August 22, Last meeting between IIS with stakeholders was held on June 27,2011 at Muara Bulianoffice and auditor team had reviewed the minute of meeting. Based on list of stakeholder and the stakeholder s minute of meeting, auditor team asked company to organize the stakeholder consultation meeting, which was scheduled on October 13,2011 (see Table 2-1 Audit Schedule). All stakeholders were sent a letter which included the agenda of the meeting. They were invited to make any comments on several issues related to them, such as: Information about RSPO to the public and stakeholders Company approach to community development. Environmental protection. Biodiversity conservation. Opportunities for employment. Provision of housing, sanitation, amenities and educational support. Participation in decision making. IIS-MB FINAL of 42

16 6 of 42 If there any complaints and grievance, land conflict Any other issue, both positive and negative that relevance to the assessment. There were 28 persons attended the public consultation meeting from various institution listed in stakeholder list and discussed the above.they were asked to freely express their opinions and suggestion. Subsequently, the auditor team discussed those issues with IIS (see3.3.) List of Contacted Stakeholders Public consultation meeting was held at Muara BulianOffice, and below is the list of stakeholders who were attending the meeting (see Table 2-2 List of Stakeholder ). Head of the Regency Plantations of Batang Hari Local Environment Agency (BLHD) Regency ofbatang Hari Department of Social and Labor District of Muara Bulian Center of Agricultural Extension District Muara Bulian Police from Batang Hari Regency and Muara BulianDistrict Farmers Union of Oil Palm Plantatiion Worker Association of Mura Bulian Mill and Plantation Head of Village of Tidar Kuranji, Bukit Sari, Bulian Jaya, Singoan Represenative from the KUD (Koperasi Unit Desa or Smallholder Scheme) from KUD Barokah, Subur Makmur, Makmur Rezeki, Karya Lestari Representative from Yunior School, SMPN 23 Tidar Kuranji Subsequently to the stakeholder meeting, the audit team discussed the issues raised with management representatives of the company and follow up visits to specific sites were conducted(see 3.3.). Table 2-2 List of Stakeholder surrounding Muara Bulian Plantation No Statutory Bodies Name in Contact List 1. BABINKAMTIBMASDesa Bulian Jaya M. Syukr 2. Desa Karya Mukti Diky Arianto, Kades SP 1 3. Desa Tidar Kuranji Rahman Suri, Kades SP 2 4. Desa Bukit Sari Maji, Kades SP 3 5. Desa Bulian Jaya Jayin, Kades SP 4 6. Desa Terusan Fauzi JR, Kades Terusan 7. Desa Danau Embat Ahmad AR, Kades Danau Embat 8. Desa Pelayangan Herwansah,Kades Pelayangan IIS-MB FINAL of 42

17 7 of Desa Rantau Kapas Tuo M. Noor Rauf, Kades Rantau Kapas Tuo 10. Desa Rantau Kapas Mudo Arwinsah, Kades Rantau Kapas Mudo 11. Desa. Singoan Sialang Pungguk Zainuddin & Mansur, Kepala Dusun 12. KAPOLSEK Maro Sebo Ilir AKP Asrul Sani, SP 2 Desa Tidar Kuranji 13. Anggota Polsek Maro Sebo Ilir, Desa Tidar Kuranji Joko N / Suparman / Amer M / Apand 14. Camat Maro Sebo Ilir, Desa Terusan M. Fadhil SE, 15. Polres TK II Batang Hari Rudhy S. NST 16. Dinas Perkebunan TK II Batang Hari Muara Bulian Sunaryo / N. Sitanggang, Bachtiar 17. BLHD Batang Hari Suardi 18. Dinas Perindagkop TK II Batang Hari Bambang S / M Rizal 19. Disosnakertrans TK II Batang Hari A Siswanto / Hera Orba Jaya 20. Samsat TK II Batang Hari Made 21. BP3K Marosebo Ilir Desa Danau Embat Kokon Sugandi 23. Kantor BPN TK II Batang Hari Mulyono AB 23. SMP YLKI BULIAN JAYA Doni Satria, SP IV Bulian Jaya 24. SMP Neg. 23 Tidar Kuranji Hermawati,SP II Tidar Kuranji 25. SD 163 Bulian Jaya Sukri A, MPd,SP IV Bulian Jaya 26. PUSKESMAS SP 1 Suntana, Desa Karya Mukti 27. KUD Barokah Rafles, Desa Karya Mukti 28. KUD Barokah Samsudin, Desa Karya Mukti 29. KUD Subur Makmur Markun, Desa Tidar Kuranji 30. KUD Budi Sari Anwar, Desa Bukit Sari 32. KUD Makmur Rezeki Nasrul,Desa Bulian Jaya 33. KUD Karya Lestari Pandioman, Desa Kehidupan Baru 34. KUD Tuah Sakato Efendi Syarham, Desa Danau Embat 35. KUD Tuah Sakato sub unit Terusan Habibullah, Desa Terusan 36. KUD Tuah Sakato sub unit RKM Gamal A. Naser, Desa Rantau Kapas Mudo IIS-MB FINAL of 42

18 8 of 42 3 Assessment Findings 3.1 Summary of the Findings by Criteria The assessment team conducted a thorough assessment of all the principles, criteria and indicators. Evidences were sought for conformity with the RSPO NI of both systems and their implementation. The summary of the assessment can be seen in Table 3-1, where Findings/Comments column reflects the findings in accordance with each criteria and indicator or evidences that were found (the full and complete checklist contains some confidential information and is an extensive document used for peer review and by the certification decision panel and certifier), and when non conformity was found, a summary of the nonconformity will be included. Table 3-1 Summary of Findings by Criteria FINDINGS/COMMENTS COMPLIANCE Criterion 1.1 (C.1.1) Provide adequate information to other stakeholders on environmental social and legal issues relevant with RSPO Criteria, in appropriate languages and forms to allow for effective participation in decision-making There is a system on how to provide adequate information to other stakeholders on environmental, social and legal issues relevant to RSPO, so called Procedure of Handling Stakeholders Information Request (Penanganan Permintaan Informasi Stakeholder) no. SOP AA-GL R1 dated December 5, This procedure was prepared by Social Security Legal (SSL) Department of IIS Head Office. Auditor team assessed the implementation of this procedure and found that all information received from related parties and its responses has been recorded in Information s Request and Responses Log Book (Buku Permintaan Dan Tanggapan Informasi). Yes (Y) The book contain information of date, name, organization, information requested, action taken to request, person in charge whom follow up or, and other referencesi.e.letter. This log book and other references as records were maintained for at least five years. Criterion 1.2 (C.1.2) Management documents are publicly available, except where these are prevented by commercial confidentiality or where disclosure of information would result in negative environmental or social outcomes IIS management has a policy which stated that all legal, social and environmental document sare publicly available, except for any related confidential commercial information and sensitive document. A Mechanism of handling the request of public documents is mentioned as well within the same abovementioned procedure SOP AA-GL R1 (C.1.1). Auditor team has verified that these documents are available for public, such as: - Environmental and social impact assessment (AMDAL,UKL-UPL,AMDAS), - Environmental Management And Monitoring Reports (Laporan Pemantauan RKL/RPL) - Land Use Title (Hak Guna Usaha/HGU) - Plantation Operation Permit (Izin Usaha Perkebunan). - HCV identification (Identifikasi HCV) - License to use water (underground water use permit), - The Health and Safety Manual and Program. - Current and past FFB prices - Compensation claims mechanism Y IIS-MB FINAL of 42

19 9 of 42 Criterion 2.1 (C.2.1) There is compliance with all applicable local, national and ratified international laws and regulations The organization has mechanism how to comply with all applicable laws and regulations through procedure SOP AA-GL R0. Implementation of this procedure was followed up byproviding a list of regulations and legal requirements relevant to the mill and plantations. The list of regulation, including Land Titles, Environmental, Forestry, Water and Air Pollution prevention, Safety, Labor Wage, Waste Management, etc. NC NC # T-01.10/11 and T Auditor team has assessed that company has complied to the laws (Undang-Undang) on Environmental, Safety, and Labour such as Undang-Undang No.32/2009 on The Basic Laws on Environmental, Undang- Undang No. 13/2003 on Labor, U ndang-undang No. 1/1970 on Safety, and Undang-Undang No. 18/2004 on the Plantation. The company has compliance to these laws. Auditor also checked and verified to the legal permits which have to be complied by the company, such as certificate of land (HGU), boiler, sterilizer, diesel generator, worker license/permit, etc. and found that the company complied on the legal permits. Only two of non compliances found, and noted as NC # T-01.10/11 and T Major 1. Evidence of compliance with relevant legal requirements According to Environmental Berau of Batang Hari District No. 117, year 2011, PT Inti Indosawit Subur has been approved for keeping hazardous waste not more than 180 days. In fact, the last picked up of hazardous waste by PT Elmuson was on January 14, 2011, which was ten months late than time permitted for keeping hazardous waste. Major 2. Evidence of efforts made to comply with changes int he regulations. There was a change in the regulation, but actually no evidence of efforts made to comply it. For example, Undang-Undang No. 23/ 1997, which was changed to Undang-Undang No. 32/ Other relevant regulation was also not identified, such as UU 18/2008, Permen 02/2008, KepmenLH No.23/2003, PermenLH 18/2009, Kep.Gub. Jambi No. 417/Dissosnakertrans/2010, Kep.Bupati Batang Hari 117/2011, etc. Both non conformities has been followed up with proper correction and corrective action respectively. The NC # T-01.10/11 has been closed as the hazardous and toxic wastefrom Muara Bulian has been sent to PT Elmusonsetindo Nusaindah on November 12, The NC# T-02.10/11 has been closed as the new list of laws and regulation was available. Auditor verified and accepted the correction and corrective action respectively and to be checked its consistency and improvement in next surveilance audit. Criterion 2.2 (C.2.2) The right to use the land can be demonstrated and is not legitimately contested by local communities with demonstrable rights Land titles for Muara Bulian Plantation were available and verified. List of land title was recorded in a file called Licenses of Plantation and Mill (Perijinan Kebun and Perijinan Pabrik). There are 5 (five) Land Titles (HGU No 01,03,03,14,15 ) for the total 1856,49 ha in Muara Bulian plantation. The boundary stones scattered along the legal area and most of them were observed in a good condition.the legal status of boundary stone was approved by Badan Pertanahan Nasional(National Land Body).The List of boundary stone maintenance for Muara Bulian plantation was recorded as a report of stone boundaries monitoring and maintenance (Laporan Pemeriksaan dan Perawatan Patok Batas) No.001/LAP/KMB/SSL/02.3/XII/2010complete with photograph. Yes (Y) The company has a mechanism for resolution of conflicts and disputes through SOP no. AA-GL R1. This procedure describes how the company solve the problem if any conflict occured both internal and external conflict. This procedure also mentioned if the problem can not resolved by negotiation, the company will take legal action involving related institution. No land conflict found at Muara Bulian plantation. The plantation is surrounded by plasmas owned by local farmers which have been nurtured and educated by IIS. For each plasma there is a company representative who has a role as the plasma manager and he is in charge of overall plasma activities. All harvested FFB from plasma are supplied to Muara Bulian Mill. During the IIS-MB FINAL of 42

20 : 20 of 42 stakeholder meeting ( ), auditor team had reconfirmed the truth of the fact that there are no disputes regarding the purchasing of FFB from farmer to company directly to plasma representatives i.e Village Cooperative (KUD) who were attending the meeting. For more information regarding stakeholder consultationsee Section3.3 Issues raised by stakeholders. Criterion 2.3 (C.2.3) Use of land for oil palm does not diminish the legal rights or customary rights of other users, without their free, prior and informed consent. There were no findings which indicated the current existence of customary rights on the plantations. Related issues were discussed during stakeholder meeting and those were confirmed that there were no outstanding customary rights or issues. Y Criterion 3.1 (C.3.1) There is an implemented management plan that aims to achieve long term economic and financial viability The company has a documented working plan written in Annual Budget, both for Tungkal Ulu mills and plantations. It covers a minimum period of 3 years which include production forecast, production cost. For mill budget,covers FFB received and processed, CPO and PKO production details, crop yield projections, and income. Price of FFB is determined based on Governor Decree of Jambi (Peraturan Gubernur)No. 36 tahun 2011 about Guideline of FFB s Price Determination (Pedoman Penetapan Harga Pembelian FFB Kelapa Sawit Produksi Perkebunan) dated September 12, Y Replanting program for IIS is available and projected for 6 years and reviewed on yearly basis. First replanting has been programmed in Criterion 4.1 (C.4.1) Operating Procedures are appropriately documented and consistently implemented and monitored IIS has provided an Agronomy Policy Manual (APM)& Standard Operating Procedure (SOP) for both mill and estate. The SOP for estate covers nursery set up and operation, planting preparation, maintenance, harvesting and related good agriculture practices, which broken down into several procedures num. AA-SOP-OP R1 until AA-SOP-OP R1. Whereas for mill activities from receiving FFB until dispatch of CPO and PK are broken down into 16 procedures num. AA-MPM-OP R1 until AA-MPM-OP R1. Concerned aspects, such as quality, environment, and safety are incorporated in each related activity listed. These SOPs were well socialized to respective persons both at Muara BulianMill and Plantation. Y Monitoring of estate operations recorded in Internal audit file, covershouse keeping, warehouse, maintenance, harvesting. Internal audit twice a year and external financial audit once a year All activities regarding the estate operations was recorded in Monthly Management Report, containing detailed FFB production and expenses, fertilizer, pesticide and herbicide applications, pruning, harvesting, hand picking, stock balances of warehouses, operational expenses, visitors, management structure, clinic report, labor and employees, rainfall, workshop, inventories of company properties. Criterion 4.2 (C.4.2) Practices to maintain soil fertility at, or where possible improve soil fertility to, a level that ensures optimal and sustained yield Soil analysis is regularly carried out once in every two years by Asian Agri Research And Development Centre and make recommendations for fertilizer.last analysis was held on May Leaf sampling and analysis was held on yearly basis. Based on soil and leaf analysis, the Y IIS-MB FINAL of 42

21 : 21 of 42 agronomist will give recomendation of fertilizer dosage. Recommendation was recorded in R&D Agronomy Visit Report and Recommendation of Fertilizer and Realization of Application (Buku Rekomendasi Pemupukan dan Realisasi Aplikasinya), issued on November To maintain land fertility, IIS used Empty Fruit Bunch (EFB) and Palm Oil Mill Effluent (POME) for land application, substituting the usage of inorganic fertilizer. This application was recorded in Program Pelaksanaan Aplikasi Janjangan Kosong dan Aplikasi Tanah (POME) (Program of EFB and POME for Land Application). Map and amount of EFB and POME application was available and clearly identified both for Muara Bulian mill and plantation. There was also report of land permeability which recorded as Report of Infiltration and Permeability on Land Application Area (Laporan Studi Infiltrasi dan Permeabilitas Areal Land Aplikasi)/, issued by Asian Agri Research and Development Center, issued in There was also available Report of Physical and Chemical Analysis of Soil, issued by Soil Research Laboratory of Bogor, period Criterion 4.3 (C.4.3) Practices to minimize and control erosion and degradation of soils IIS has a strong commitment to control and minimize soil degradation. Report of control and minimize soil degradation was recorded in Soil Survey Report (Laporan Survey Tanah Semidetail), issued by Asian Agri Research and Development Centre. A map of soil for Muara Bulian plantation is available. Y Company provided SOP: AA-APM-OP R1 for soil and water conservation, including covers management strategy for slope planting. Auditor noted that IIS has identified conservation terraces and platforms to manage sloped areas, and the result of this was recorded in Programs & Realization for maintenance of terrace, horse hooves, silpit, preparation of midrib completed with maps(program and Realisasi pembuatan/pemeliharaan teresan, tapak kuda, silpit, penyusunan pelepah). Constructed Individual and continuous terraces in conjunction for soil and water conservation. Roads were very well maintained and there was a maintenance road program since There was a monthly road maintenance activities using grader. These activities are planned in a Program for Road Maintenance, including road grading, road pit, sand and stone spreading along the road, etc. (Program Pemeliharaan Jalan: Pengerasan dan parit jalan, penaburan pasir dan batu) There was no peat and fragile soil identified. But in case of any, IIS has prepared an SOP no. AA- APM-OP R1 item to resolve of peat and fragile soil problem. Criterion 4.4 (C.4.4) Practices to maintain the quality and availability of surface and ground water There was restoration of the riparian program which was recorded in Riparian Restoration Program (Program Restorasi Riparian). Through this program, IIS has implemented a riparian buffer zones program and monitoring for the existing of erosion control in field. All water courses are clearly identified on maps as well as on site. In this program, zero usage of fertilizer and pesticide application in the riparian zones was applied. Y Water management included monitoring of all water usage and discharge as they enter and leave mills and plantations. IIS provided the water balance records, including monitoring of daily water consumption entering mills and plantation, and waste water discharge to waste water treatment and used it as POME for land application. Biological Oxygen Demand (BOD) from waste water treatment plant was measured by external laboratory monthly. Result of the measurement was monitored and compiled into documents of RKL/RPL (Environment Management Plan Environmental Monitoring Plan), both for Tungkal Ulu Mill and Plantation which was sent to Environmental Impact Management Agency (Bapedalda Badan Pengendalian Dampak Lingkungan Hidup Daerah) every six (6) months. Water usage for mill operations was available and recorded as Water Management Program for IIS-MB FINAL of 42

22 : 22 of 42 Mill (Program Pengelolaan Air di Pabrik). Four years data of water usage for both operational and domestic water consumption are available. The records showed that during four years from 2008 up to September 2011 was insignificantly different, average water consumption for mill operation was 1.04 ± 0.05 m 3 /ton FFB which was still under the operational budget for water consumption 1.21 m 3 /ton FFB. Criterion 4.5 (C.4.5) Pests, diseases, weeds and invasively-introduced species are effectively managed using appropriate Integrated Pest Management (IPM) Techniques IIS has provided procedure for Integrated Pest Management (IPM) plan in SOP:AA-APM-OP R1. The IPM focused on monitoring of pests and diseases. Several common pests have been identified - rat, caterpillar (Thosea asigna and Setora nitens) and termites. Y IPM comprises both chemical and biological control. Biological control for caterpillari.e.by the planting of beneficial plants, such as Antigonon leptosus (air mata pengantin), Turnera subulata (bunga pukul delapan) Euphorbia heterophylla (patik emas), Casia cobanensis, Those plants have a role as a host for Cikanus sp., which is known as caterpillar predator. Rat control was conducted through rat census and barn owl (Tyto alba) monitoring. Auditor found that the use of owls to control rats and use of beneficial plants alongside roads was effective. Usage of pesticides was decreased. Report of IPM Program was recorded as Report of Pest and Disease, which is conducted by Research and Development Centre (RDC), and last record census for Pest and Disease for Muara Bulian is report No. KMB/R&D-P&D/01-10, dated May 10-11, The census was conducted yearly and for year 2011 it is planned on December. There was yearly based record for leaf analysis, and monitoring of pesticide toxicity conducted by R & D Agronomist fom March 2009 up to July The latest was on July 8, Record of EFB and POME reports for land application from March to September 2011 was available. Criterion 4.6 (C.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. There is a list of agrochemical used, refer to World Health Organisation Type 1A or 1B and recorded as Buku Klasifikasi Pestisida menurut WHO and procedure of usage of chemical, such as standard operation procedures (SOP), and MSDS. Y Refer to Agriculture Ministry, through its decree No. 1/ 2007 regarding Restricted and Prohibited Pesticides(Bahan Aktif Pestisida Yang Dilarang Dan Pestisida Terbatas), Head of Environment and CSR Coordination, and oil palm plantation researcher have declared a commitment to minimize hazardous agrochemicals. Since year 2005 only approved agrochemicals that have been registered are to be applied in the plantations. The consumption of agrochemicals are used based on internal regulation issued by the Head of Environment and CSR coordination, and Researcher manager, and in accordance with the Managing Director Operation declarations. There was memorandum Head Plantation regarding Herbicide containing Paraquat Reduction Usage(Pengurangan Pemakaian Herbisida yang mengandung Paraquat). The usage of Gramoxone was monitored properly, the summary of monthly usage record showed a significant reduction of Gramoxone application in Muara Bulian Plantation from 2010 to 2011, which were decreased from 1518 to 412 liter. Training for almost of chemicals applicators have been done in between 2010 and The latest training was conducted on October 4, 2011 covered all workers who have not been trained. The IIS-MB FINAL of 42

23 : 23 of 42 training was done externally by Ir. Guntur, Mr. Syahrial, Mr. Abdul Ghafur, and Suroso from Fertilizer and Pesticide Supervisor Commission for Jambi Province. IIS listed all chemicals applicator worker, in a form namely Sprayer and Fertilizer Worker List updated September 29, Within this form, the company monitors training of pesticide certificate availability, medical check up certificate, pregnancy monthly test result for women worker. The latest pregnancy test result on September 13, 2011, showed no pregnant worker sprayer. Criterion 4.7 (C.4.7) An occupational health and safety plan is documented, effectively communicated and implemented. PT. Inti Indosawit Subur (IIS) management has established OSH policy, which was intergrated in Kebijakan Lingkungan, Sosial, Kesehatan dan Keselamatan Kerja (Environmental, Social, and Occupational Healt and Safety), on September 2008and was approved by Senior Manager. Y To implement the policy there was OSH procedure, SOP-AA R.1, dated August 15, Included in this procedure are map/layout of evacuation route, Fire Extinguisher, First Aid, Hydrant, Assembly Point and applicable in mill, plantation, warehouse, office, traction, and housing.this procedure has been socialized and communicated to all sites. There was OHS organization structure, called Tim Panitia Pembina Keselamatan dan Kesehatan Kerja (Tim P2K3)/ OHS Steering Committee approved by Labor Authority both at Muara Bulian plantations and mills. Approval Letter of OHS Committee for Muara BulianNo. 568/752/DSKT/V/2011 and No. 568/947/DSKT/V/2011 and for No.560/2074/4.3/DSTKT/V/2011 and No.560/174/4.3/DSTKT/V/2011, dated 13 July The secretary of the team, must have Certificate for General OHS Expert (Sertifikat Ahli K3 Umum). OHS Committee conducts a regular monthly meeting and gives explanation to all supervisor at sites, both mill and plantations. Before working, supervisor of mills and plantations have a morning briefing to all workers which normally explain what are their to date job, including safety briefing. All worker equipped with suitable PPE. Records of training, socialization of OHS, morning briefing, certificate of training, use of safety equipment such as fire extinguisher were available. There were several OHS training since March until June 2011 recorded, such as training on OHS and RSPO, First aid, HIRA, OHS program. Training of RSPO and OSH was given by the sustainability department; training or agronomy (includes spraying) by the estate manager. Workers exposed to high risk were identified and records show that regular health examination takes place. All workers are insured by PT. Jaminan Sosial Tenaga Kerja (Jamsostek), the national insurance body.records of member (worker) list and payment were available. IIS provided the health care facilities for sprayer operators, workers, and staff as well as people living around the employee s housing complex. The patient s datawas registered in their medical record. Each plantation has a health care facility and there is a doctor who visitthem every week. For Muara Bulian plantation, medical check up (MCU) was conducted for workers who work as sprayer, chemical warehouse, workshop, fertilizer. Whereas for mill, the MCU was conducted for those who work at bolier station, water and waste water treatment plant, chemical warehouse, toxic and hazardous warehouse, workshop. Result of MCU was recorded in Recapitulation of Regular Medical Check Up for Worker (Rekapitulasi Hasil Pemeriksaan Berkala Karyawan). Both plantation and mill worker, are regularly check for two (2) times a year. The latest medical check up was done in April 1, There wasa training for P2K3 team, which was coordinated by doctor and paramedic, other than that Basic Safety, Basic Fire, and First Aid training were conducted as well, and all records were well maintained accordingly. Criterion 4.8 (C.4.8) All staff, workers, smallholders and contractors are appropriately trained. IIS-MB FINAL of 42