[ ]Stage-1 Stage-2 [ ] PT IVOMAS TUNGGAL. MUTUAGUNG LESTARI ASSESSMENT REPORT SPO – 4006a.5 i Prepared by Mutuagung Lestari for Samsam Mill – PT Ivo Mas Tunggal TABLE OF CONTENT

PT. MUTUAGUNG

LESTARI

ASSESSMENT REPORT

Roundtable on Sustainable Palm Oil Certification

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

Plantation Management/Owner : PT IVOMAS TUNGGAL

Plantation Name : PKS Samsam & Samsam Estate; Palapa Estate;

Kandistasari Estate

Location :

Desa Bekalar, Kecamatan Kandis, Kabupaten

Siak, Riau

Certificate Code : MUTU-RSPO/031

Date of certificate issue : October 14th, 2013

Date of expiry of certificate : October 13th, 2018

Assessment Assessment

Date PT. Mutuagung Lestari

Auditor Checked

by Approved

by

ST 1 06 – 08 May 2013 Octo HPN Nainggolan; Marsudi Eko Santoso; Rudi ramdani; Sandra

Purba

Taufik

Margani

Tony

Arifiarachman

ST 2 4 – 7 & 13 June 2013 Octo Nainggolan (Lead Auditor Witness), Syarip Lambaga (Lead

Auditor Witnessed), Rudi Ramdani, Ardiansyah, Sandra Purba

Taufik

Margani

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 • Approved by RSPO Secretariat on June 2008

Assessment Submitted

to RSPO on: Approved

by RSPO on: Approved

by MUTUAGUNG LESTARI on:

ST2

http://www.mutucertification.com/

PT. MUTUAGUNG

LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 i Prepared by Mutuagung Lestari for Samsam Mill – PT Ivo Mas Tunggal

TABLE OF CONTENT

FIGURE

Figure 1. Location Map of PT Ivo Mas Tunggal Figure 2. Operational Map of PT Ivo Mas Tunggal

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 8

2.2 Assessment Team 8

2.3 Assessment Methodology, Assessment Process and Locations of Assessment 9

2.4 Stakeholder Consultation and List of Stakeholders Contacted 11

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 38

3.3 Conformity Checklist of Certificate and Logo Use 42 3.4 Summary of RSPO Partial Certification 43

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

45

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 55

APPENDICES

1. List of Stakeholders Contacted in the RSPO Certification Process 56

2. Assessment Program 57

3. Glossary 59

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 Page 1

Prepared by Mutuagung Lestari for Samsam Mill – PT Ivo Mas Tunggal

Figure 1. Location Map of PT Ivo Mas Tunggal

PT IVO MAS TUNGGAL

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 Page 2

Prepared by Mutuagung Lestari for Samsam Mill – PT Ivo Mas Tunggal

Figure 2. Operational Map of PT Ivo Mas Tunggal

PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 Page 3 Prepared by Mutuagung Lestari for Samsam Mill – PT Ivo Mas Tunggal

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 Organization Information

1.2.1 Company name IVO MAS TUNGGAL

1.2.2 Contact person Ismu Zulfikar

1.2.3 Company address and site address Plaza BII Tower 2, 30th Floor JL. MH Thamrin No 51 Kav 22 Jakarta 10350 Indonesia

1.2.4 Telephone +6221 50338899 ext 1184

1.2.5 Fax +6221 50389999

1.2.6 E-mail [email protected]

1.2.7 Web page address www.smart-tbk.com

1.2.8 Company status Penanaman Modal Dalam Negeri

1.2.9 Management Representative who completed the application for certification

Ismu Zulfikar

1.2.10 Registered as RSPO member No. Registrasi: 1– 0056 – 08 – 000–00 Date: 17 June 2008

1.3 Type of Assessment

1.3.1 Scope of Assessment 1 POM & 3 Estate

1.3.2 Type of certificate Single

1.3.3 Company names listed in the certificate PT IVOMAS TUNGGAL

1.3.4 Number of management unit 1 (one) unit of Palm Oil Mill (SAMSAM POM) & 3 Estate (Samsam Estate, Palapa Estate & Kandistasari Estate)

1.4 Locations of Mill, Plantations and Area Statement

1.4.1 Location of Mill

Name of Mill Location

GPS

Latitude Longitude

Samsam Village of Bekalar, Subdistrict of Kandis, District of Siak, Province of Riau

0° 56’ 14,86”N 101° 18’ 00,79”E

1.4.2 Location of Supply Base

Nama Pemasok Lokasi

GPS Latitude Longitude

Samsam Village of Bekalar, Subdistrict of Kandis, District of Siak, Province of Riau

0° 56’ 11”N 101° 18’ 00”E

Palapa Village of Bekalar, Subdistrict of Kandis, District of Siak, Province of Riau

0° 56’ 40”N 101° 16’ 51”E


ASSESSMENT REPORT


Kandista Sari Village of Belutu, Subdistrict of Kandis, District of Siak, Province of Riau

0° 55’ 38”N 101° 21’ 05”E

1.4.3 Tenure

Private

State 9.805,85 Ha

Community

1.4.7 Area Statement

Total area 9.805,85 Ha

Mature area 9.720,86 Ha

Immature area 0 Ha

Mill 3,13 Ha

Infrastructure 76,96 Ha

Occupation 0 Ha

HCV (area has been included into area that is managed) (261,709) Ha

Others area 4,9 Ha

1.5 Description of Supply Base

1.5.1 Description of Mill

Name of Mill Capacity

(tonnes/ hour)

FFB Processed

(tonnes/ year)

CPO Palm Kernel PKO

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

SAMSAM 60 268.883 56.939 21,18 16.716 6,22 - -

* Data source: Production of Samsam POM Period May 2012 – April 2013

1.5.2 Description of Estate(s)

Name of Estate(s) Total Area

(Ha)

Planted Area (Ha)

FFB (tonnes/year)

Yield (tonnes/ha/year)

Supplied to Mill

FFB (tonnes/year)

%

Samsam 2.846,08 2.816,08 60.674,5 21,52 60.660,18 100

Palapa 3.074,89 3.047,89 69.441,5 22,54 68.531,19 100

Kandista Sari 3.884,89 3.856,89 100.108,5 25,72 100.023,43 100

TOTAL 9.805,86 9.720,86 230.224,5 23,68 229.214,80 100

* Data source: Production of estate Period May 2012 – April 2013

1.5.3 Smallholder(s) and other source

Name of source(s)

Member(s) Location Total Area

(Ha) FFB

(tonnes/year)

Supplied to Mill

FFB (tonnes/year)

%

Ujung Tanjung Estate

- Distric of Siak 3.621,23

95.962,450

36.963 38,51

Libo Estate - Distric of Siak 4.529,80

88.835,72

264 0,297

Sei Rokan Estate

- Distric of Siak 4.129,48 93.292,09 191 0,204


ASSESSMENT REPORT


Nenggala

Estate - Distric of Siak 2.959,92

40.162,89

110 0,27

Rama Bakti Estate

- Distric of Kampar 2.895,91 77,394.05 2.140 2,77

* Data source: Production of Samsam POM Period May 2012 – April 2013

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 Hectarage

Ages (Year) Samsam Estate

(SSME) Kandista

Estate (KNDE) Palapa Estate

(PLPE) Total

1987 970,95 - 2.291,30 3.262,25 26

1988 1.845,13 856,95 756,59 3.458,67 25

1992 - 1.866,97 - 1.866,97 21

1993 - 1.132.97 - 1.132.97 20

Total 2.816,08 3.856,89 3.047,89 3.720,86 -

* Data Source: Area statement of PT Ivomas Tunggal 2013

1.6.2 New Planting area after November 2007

- Ha

1.6.3 Planting Cycle 1stCycle 25 Tahun

1.7 Approximate Tonnage Certified

1.7.1 Past Annual Claim Certified Product

FFB Production - Tonnes/year

CPO Production - Tonnes/year

Palm Kernel (PK) Production - Tonnes/year

Palm Kernel Oil (PKO) Production - Tonnes/year

1.7.2 Claim Certified Tonnage of FFB

Name of Estate(s) Total Area

(Ha) Planted Area

(Ha) FFB

(tonnes/year) Yield

(tonnes/ha/year)

Samsam 2.846,08 2.816,08 60.674,5 21,52

Palapa 3.074,89 3.047,89 69.441,5 22,54

Kandista Sari 3.884,89 3.856,89 100.108,5 25,72

TOTAL 9.805,86 9.720,86 230.224,5 23,68

1.7.3 Claim Certified Tonnage of Palm Product

Name of Capacity FFB CPO Palm Kernel PKO


ASSESSMENT REPORT


Mill (tonnes/ hour) Processed (tonnes/

year)

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Out put (tonnes)

Extraction (%)

Samsam 60 230.224,5 48,761.6 21,18 14,319.97 6,22 - -

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

GROUP Mill Company Region Mill Estate (FFB Supplier) Certification Remark (Estate Entity)

IMT PT. IVOMAS TUNGGAL

SIAK-RIAU SSMM Samsam Mill

SSME Samsam Estate 2009 Certified

KNDE Kandista Estate 2009 Certified PLPE Palapa Estate 2009 Certified


SIAK-RIAU LIBM Libo Mill LIBE Libo Estate 2009 Certified

NGLE Nenggala Estate

2009 Certified

SRKE Sungai Rokan Estate

2009 Certified


SIAK-RIAU UTJM Ujung Tanjung Mill

UTNE Ujung Tanjung Estate

2009 Certified

STPA Sungai Tapung Setate

2011 Certified

IMT PT. BUANA WIRALESTARI MAS

KAMPAR-RIAU

NSAM Naga Sakti Mill

NMAE Naga Mas Estate

2010 Certified

NSAE Naga Sakti Estate

2010

Certified

RBKE Rama Bakti 2010 Certified


KAMPAR-RIAU

KJNM Kijang Mill KJGE Kijang Mas Inti Estate

2010 Certified

KJNP Kijang Kencana Plasma

2011 Certified

IMT PT. RAMAJAYA PRAMUKTI

KAMPAR-RIAU

RRMM Ramarama Mill

RRME Ramarama Estate

2010 Certified

AYJP Amartajaya Plasma

2011 Certified


INDRAGIRI-RIAU

IDSM Indra Sakti Mill

IDLE Indra Lestari Estate

2011 Audited

IDSE Indra Sakti Estate

2011 Audited

INDA Indragiri Plasma 2011 Audited

IDSA Indrasakti Plasma

2011 Audited

IMT PT. BUMIPALMA LESTARI PERSADA

INDRAGIRI-RIAU

BPLM Bumipalma Mill

BPLE Bumi Lestari Estate

2012 Audited on July 2013

BPME Bumi Palma Estate

2012 Audited on July 2013

BSNE Bumi Sentosa 2012 Audited on July 2013


ASSESSMENT REPORT


Estate

According to the time bound plan of PT Ivo Mas Tunggal, there is one (1) unit under the management of PT Ivo Mas Tunggal planned to do the verification stage in Time Bound Plan on 2012. However, on May 13, 2013 has been conducted pre assessment (Stage 1).


ASSESSMENT REPORT


2.0 ASSESSMENT PROCESS

2.1 Certification Body

PT Mutuagung Lestari

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

Telp. +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

ST 1 1. Octo H.P.N Nainggolan (Lead Auditor). Indonesian citizen, Bachelor of Agriculture, majoring of Social Economics of Agriculture (Agribusiness). Seven years working experience since 2004 at oil palm Plantation Company in Indonesia and followed several trainings namely: Training of Conservation of Natural and Biological Resources in supporting HCV, Basic Plantation Management Program, Plantation Integrated Pest Management training, Management System Certification (ISO 9001-2008/SNI 19011-9001:2008), Environment Management System (ISO 14001:2004), SMK3 based on OHSAS, RSPO Lead Auditors Training Course endorsed by Proforest and Wildasia, Indonesian Sustainable Palm Oil (ISPO) Lead Auditor training course, supply chain certification system training and RSPO Renewable Energy Directive Lead Auditor training. Currently he worked as an auditor at Certification Body. In Stage-1 activity he is assess the legality, best practice and environmental aspect(s).

2. Marsudi Eko Santoso (Auditor). Bachelor of Agriculture, majoring in Agro technology. Followed Auditor/Lead auditor Management System Certification (ISO 9001-2008), Awareness HACCP certification, training of RSPO auditor and training of RSPO Lead Auditor, ISPO Lead auditor training, awareness green house gas and OHSAS technical expert. Currently he works for Independent Certification Body.He had involved activities RSPO and ISPO certification assessment as an auditor. In Stage-1 actifity he is assess the aspects of best management practices, Integrated Pest Management, Worker welfare and Occupational Health and Safety.

3. Rudi Ramdani (Auditor). Bachelor of Agriculture Majoring in Agronomy, Agriculture Faculty of Bogor Agricultural University. He has experienced more than two years as an operational staff in a private oil palm plantation company in Indonesia. He also followed training he namely: Indonesian Sustainable Palm Oil auditor, Awareness RSPO, Management System Certification (ISO 9001-2008) training and awareness OHSAS. Currently he works for Independent Certification Body.He had involved activities RSPO and ISPO certification assessment as an auditor. In this stage-1 he is assess for cultivation techniques.

4. Sandra Purba (Trainee Auditor) Bachelor of Forestry, Department of Forest Products Technology, Faculty of Agriculture, University of North Sumatra. Have experience working in oil palm plantations Company. She had attended such training: Training Expert of OHSAS General, Training ISPO Auditor and Auditor/Lead auditor Management System Certification (ISO 9001-2008). In this stage-1 activity she is assess on Occupational Health and Safety and Employment aspects.

ST2 1. Octo H.P.N Nainggolan (Lead Auditor Witness). Indonesian citizen, Bachelor of Agriculture, majoring of Social Economics of Agriculture (Agribusiness). Seven years working experience since 2004 at oil palm Plantation Company in Indonesia and followed several trainings namely: Training of Conservation of Natural and Biological Resources in supporting HCV, Basic Plantation Management Program, Plantation Integrated Pest Management training, Management System Certification (ISO 9001-2008/SNI 19011-9001:2008), Environment Management System (ISO 14001:2004), SMK3 based on OHSAS, RSPO Lead Auditors Training Course endorsed by Proforest and Wildasia, Indonesian Sustainable Palm Oil (ISPO) Lead Auditor training course, supply chain certification system training and RSPO Renewable Energy Directive Lead Auditor training. Currently he worked as an auditor at Certification Body.. In stage-2 he is as Lead Auditor Witnesser.

2. M. Syarip Lambaga (Lead Auditor). Bachelor of Agriculture from UNHAS, Master of Science Program Post Harvest Technology of IPB, trainings have been followed among others, Lead auditor training RSPO, In House Training for ISO 9000 and 14001 Lead Auditor Training SFM as Social Expert, ISO 22000 Lead Auditor Training, ISPO Lead Auditor Training, and Malcolm Baldrige Training. Having experience in the plantation of more than 5 years, and experience as a food safety auditor for more than 5 years, team members evaluator SNI BSN Awards, and as a team member for socialization RSPO smallholder and large estates conducted by DMSI 2006-2009. In Stage-2 he is assess the legality and environmental aspect(s).

http://www.mutucertification.com/

mailto:[email protected]


ASSESSMENT REPORT


3. Ardiansyah (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. In stage-2 he is asses for HCV, social, environmental and soil & water conservation aspect(s).

4. Rudi Ramdani (Auditor). Bachelor of Agriculture Majoring in Agronomy, Agriculture Faculty of Bogor Agricultural University. He has experienced more than two years as an operational staff in a private oil palm plantation company in Indonesia. He also followed training he namely: Indonesian Sustainable Palm Oil auditor, Awareness RSPO, Management System Certification (ISO 9001-2008) training and awareness OHSAS. Currently he works for Independent Certification Body.He had involved activities RSPO and ISPO certification assessment as an auditor. In this stage-2 he is assess for cultivation techniques .

5. Sandra Purba (Trainee Auditor) Bachelor of Forestry, Department of Forest Products Technology, Faculty of Agriculture, University of North Sumatra. Have experience working in oil palm plantations Company. She had attended such training: Training Expert of OHSAS General, Training ISPO Auditor and Auditor/Lead auditor Management System Certification (ISO 9001-2008). In stage-2 activity she is assess on OHS, Employment, Freedom of Union, Mechanisms for FFB pricing, Equality of Opportunity, Gender Equality and CSR.

2.3 Assessment Methodology, Assessment Process and Locations of Assessment

2.3.1 Figure of person days to implement assessment

ST 1 Number of auditors: 4 persons Number of days for assessment at site: 2 days Number of working days for assesssment at site: 8 working days

ST2 Number of auditors: 5 persons Number of days for assessment at site: 4 days Number of working days for assesssment at site: 20 working days During the main assessment, there was an evaluation of the lead auditor witnessed by lead auditor witnesser.

2.3.2 Detail Process of Assessment

ST 1 The assessment was conducted by measuring the sufficiency of implementation with the consistency done by the PT Ivo Mas Tunggal – Samsam POM 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: (1) document review, aiming to observe the sufficiency of types or substances from required documents; (2) interview, aiming to obtain more detailed information and cross check the information; and (3) field observation, aiming to observe directly the sufficiency of implementation on site. Some opportunities for improvement of the results ST-1 delivered by the auditor MAL to the management unit and the results are the subject will be verified at the next assessment phase (ST-2). All information obtained was recorded in Check List of PT Mutuagung Lestari (MUTU) and part of ST-1.

ST 2 The assessment was conducted by measuring the sufficiency of implementation with the consistency done by the PT Ivo Mas Tunggal – Samsam POM 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: (1) document review, aiming to observe the sufficiency of types or substances from required documents; (2) interview, aiming to obtain more detailed information and cross check the information; and (3) field observation, aiming to observe directly the sufficiency of implementation on site. Some opportunities for improvement of the results ST-2 delivered by the auditor MAL to the management unit and the results are the subject will be verified at the next assessment phase (S-1)


ASSESSMENT REPORT


Improvement of findings from ST-1 assesment findings were observed by auditors at this ST-2 assessment. All information obtained was recorded in Check List of PT Mutuagung Lestari (MUTU) and part of ST-2. Detail Process of Assessment are: The assessment program please find Appendix 2

June 4th, 2013. Team departed from Jakarta to Pekanbaru, then travelled a trip to the location PT. Ivomas Tunggal in Siak. Later in the day, the team conducted opening meeting in Ujung Tanjung Estate Training Center, which was attended by: Regional Controller & Production Controller Siak, Factory Manager of Libo, Ujung Tanjung and sam sam, estate Manager of Libo, Sei Rokan, Nenggala, Ujung Tanjung, Samsam, Kandista and Palapa, HR staff Region and Center, Legal staff and Mapping, Senior Assistant, Mill Assistant and estate Assistant and other related personnel. Furthermore, it continued review of legal documents and Basic information mill and estate.

June 5th, 2013. In the morning, team divided into 2 teams. : Team 1 (Mr. Syarif Lambaga, Mr Rudi and Mr Octo) conducted Focus Group Discussion with stakeholders PT. Ivomas Tunggal in the hall of Ujung Tanjung Training Center and Team 2 (Mr.Ardiansyah and Miss.Sandra Purba) conducted public consultation to government agencies in Siak. During the day, all members teams have continued review documents in the Hall of Ujung Tanjung Training Center. Later, in evening, based on the results of the documents review and public consultation, Team determined sample locations that would be visited and presented to the management of PT. Ivomas Tunggal.

Juni 7th, 2013. In the morning, the team conducted field visits in Samsam POM and Samsam estate. The afternoon, team conducted field visits in Palapa Estate.

June 13th, 2013. In the morning, team continued documents review of Ujung Tanjung POM and Ujung Tanjung Estate. The afternoon, team conducted Closing Meeting in the Hall of Ujung Tanjung Training Center which was attended by: Regional Controller & Production Controller Siak, Factory Manager of Libo, Ujung Tanjung and Samsam, Estates Manager of Libo, Sei Rokan, Nenggala, Ujung Tanjung, Samsam, Kandista, Palapa, HR staff for Region and Center, Legal staff and Mapping, Senior Assistant, Mill Assistant, Estate Assistant and other related personnel.

2.3.3 Locations of Assessment

ST1 Stage 1 assessment is done by document review at PT Ivo Mas Tunggal (Siak Region) without field observation.

ST2 Palapaa and Samsam Estate Location 1. Block G21 & G22 Division 3 PLPE, I26-I27 Division 3 SSME: Observation of harvesting activity and

interview with harvesters, loaders, and harvesting foreman about how to work safely, the use of protective equipments (helmet, glasses, boots), understanding of first aid, wages, freedom of union, health service, and social security.

Location 2. Block G21 Division 2 PLPE & I24 Division 3 SSME: Observation on the management/use of owl to control rats and use of biological control agent (Turnera subulataandCassia cobanensis). The cages were actively occupied by owls.

Location 3. Block G18 Division 3 PLPE & H26 Division 3 SSME: Observation of spraying activity and interview with workers and spraying foreman ut how to work safely, the use of protective equipments(boots, apron, gloves, masks, and glasses), medicah checkup of spraying workers (urine test, blood test, and x-rays), health service and security of workers, wages, understanding of first aid and freedom of union.

Location 4. Block G19/20 Division 3 PLPE & H26 Division 3 SSME : Observation and interview with grader operator related with road maintenance, use of protective equipment (helmet), safe working, first aid at work, health service and security and freedom of union.

Location 5. Residential area for PLPE and SSME workers: Interview with the family of workers related with given facilities and infrastructure. Based on the interview result, the company has provided free residential area, subsidized electricity and clean water. The family of workers also know about the prohibition of waste burning.

Location 6. Workshop SSME:Based on the field observation, the company has completed workshop with Occupational Health& Safety. warnings. Based on the interview with the workshop workers, the company has conducted medical check up and conducted training to workers according to the competitions.


ASSESSMENT REPORT


Location 7. Hazardous MaterialPPLE Warehouse andSSME: Based on the field observation, the company ahs completed several warnings related with Occupational Health &Safety around Hazardous Material, first aid kits, skilled First Aid EmergencyOfficers, and understand about SOP for Hazardous Material warehouse.

Location 8. Hazardous MaterialWarehouse PPLE and SSME:Based on the field observation, the company has regulate Hazardous Materialwaste in accordance with its type and characteristic.

Location 9. SSME Clinic: Based on the observation and interview with the medical officers, it is known that medical equipments have not been sterilized before used, clinic waste is managed according to the SOP, and label and symbol can be found in infectious waste from clinic’s activities.

Location 10. Fire Fighting Infrastructure and Facilities: Based on the observation and interview, fire extinguishers have been available and well functioned.

Location 11. Block K12, Division 5, SSME: Based on the field observation, boundary markers at IMT 04 that separates company area and communit land in Bekakar Village were in good condition and well maintained.

Location 12. Block M07, Division 5, SSME Based on the field observation, it is known that boundary markers of BM 13 that separates company area and communit land in Bekakar Village were in good condition and well maintained.

Location 13. Block H-I20, Division 3, SSME. Based on the field observation, in HCV area in the form of riparian area, there was a poster about protected animals, prohibition not to use chemical material in the left and right of river (50 meter) and announcement board about the presence of this HCV. The company also have plantedvertifer grass andGuatemala.

Location 14. Block K13, Division 5, SSME:Based on the field observation, replanting activity was not conducted by burning but cut and chopped.

Location 15. Block G03, Division 3, PLPE: Based on the field observation, boundary markers atIMT 09 were good and well maintained.

Location 16. Block H02, Division 1, PLPE: Based on the field observation,boundary markers atIMT 08were good and well maintained.

Location 17. Block I03, Division 1, PLPE: Based on the field observation,boundary markers atBM 01were good and well maintained.

Location 18. Block G20, Division 4, PLPE. Based on the field observation,HCV area is situated in the riparian of Angek Tapuak River. Poster about protected animals has been already installed, prohibition sign about chemical material use in the left and right river (50 meter), and announcement sign about this HCV area. The company has also planted vertifer grass and Guatemala.

Samsam POM Location 19. Samsam POM.Observation and interview with the staff ofPOM (Receiving of FFB, Processing <

Despatch, Warehouse, Workshop). Based on the result of field observation and interview with staffs, staffs have understood about the procedures. The staffs have used Personal Protective Equipmentin the working area.

Stakeholder Location 20. Hall of Ujung Tanjung Training Center. Focus Group Discussion was conducted with stakeholders

of PT. Ivomas Tunggal such as village government, community figures, head of Indonesian Workers Union, Head ofNGO, Head of Gender Committee

Location 21. Government Institution in Siak Regency. Consulation and interview with government institutions were conducted in Siak Regencysuch as Plantation Agency, Manpower Agency, andEnvironmental Agency.

2.4 Stakeholder Consultation and List of Stakeholders Contacted

2.4.1 Summary of stakeholder consultation process

ST1 Public consultation process has not been done at assessment ST-1. Public consultation will be carried out when main assessment.


ASSESSMENT REPORT


ST2 There are 11 (eleven) stakeholders that contacted to provide input and information.

Public consultation for PT Ivo Mas Tunggal performed with:

1) Public announcement on the RSPO website (www.rspo.org).

2) Meeting with several stakeholders in the district by visiting & consulting directly and doing Focus Group

Discussion with representatives of rural communities around.

2.4.2 List of stakeholder contacted

ST1 Public consultation process has not been done at assessment ST-1. Public consultation will be carried out when main assessment.

ST2 Please find appendix 3

2.5 Determining Next Visiting

The next visit (Surveillance) will be determined after 12 months after the certificate is issued.


ASSESSMENT REPORT


3.0. ASSESSMENT RESULT

3.1. Summary of Assessment Report of the RSPO Certification

MUTUAGUNG LESTARI has conducted an assessment of Samsam Mill (PT Ivo Mas Tunggal) operation consisting of one (1) mill and three (3) oil palm estates. During the assessment, there were one (1) Nonconformities were assigned against Major Compliance Indicator(s); one (1) nonconformity(s) were assigned against Minor Compliance Indicators; and five (5) opportunity(s) 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 has already prepared and implemented the corrective action(s) that had been reviewed and accepted by Auditor(s) in form of documentation evidence(s) e.g. (document record/photographic/etc...). Those corrective action(s) taken that consist of one (1) Major non-conformity(s) and one (1) Minor non-conformity(s) had been closed out shall be verified during next assessment. MUTUAGUNG LESTARI found that Samsam Mill (PT Ivo Mas Tunggal) complied 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 dan untuk Scheme Smallholders, October 2009.

Therefore MUTUAGUNG LESTARI Recommends RSPO Certification of compliance is Issued.

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.

In this report, PT. Ivomas Tunggal, further called as “company” already has Procedure of Communication and Consultation number SOP/SOP/SMART/LH-19 and External and Internal CommunicationBook for Riau area that describe about incoming information and its response, at each management unit (POM and Estate). Based on the explanation from the Manager of Communication, information order should be submitted in writing The officer who recording the information at the POM is office clerk of SMK3 and at the estate is the office clerk of bookkeeping. After being recorded, information order is delivered to Head of Administration Departmentand then delivered to Manager Unit, If needed, Manager Unit consults with related unit. The period of communication response is 1 month. There is also a mail box to deliver aspiration Based on the verification of Communication Book of PT. Ivo Mas Tunggal, there was no information order from the community. . All incoming mails had been responded in accordance with the procedures.For example:

SSME: Letter number 800/SPP/SMKNIKANDIS/007 on30 January about informatio order to accept intern in industry and responded by Letter number 004/SSME/SMKN1KANDIS/02/2013 on 21 February 2013.

SMSM: Fund donation through letter on 21 January 2013 was received on 26 January 2013 and responded on 21 February 2013.

Record of information order and its response responses is stored in accordance with the SOP of Document Management. The shelf life of document is ±5 years in accordance with the SOP (SOP/SPO/SMART/LH-02 dated July 1st, 2010) in the secretarial of each unit SPO. The company has provided adequate information to other stakeholders, such as:

The delivery of waste management report (liquid waste and Hazardous and Toxic Waste) Quarter I of 2013 PT Ivo Masa Tunggal (Estate and POM) to the Environmental Agency Siak Regency, received by public staff (Pertiwi) on May 1st,


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2013.

Implementation Report of Environmental Management Plan-Environmental Monitoring PlanSecond Semester of 2012 reported to theEnvironmental Agency (BLH) Siak Regencyand received by Environmental Agency (Ms.Tanti) on 10 April 2013.

Status: Full Compliance

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.

The company has a policy related with the document of company that can be accessedby the public/stakeholder and it has been approvedby theManager, such as: 1. Number of Employeesand EmployeeWageList 2. List ofEmployees, Personal TaxandInformationforbuilding tax calculation 3. Number of Employees 4. EIAstudy, Environmental Management Plan/Environmental Monitoring Planand land application permit. 5. Quarterlyreportsguiding committee of occupational safety & health 6. Report ofSocial Impact Assessment 7. Documentof Social Work 8. Ownership License/Permits such asLand Use Titlecertificate (land use title).

Record of information order and its response responses is stored in accordance with the SOP of Document Management. The shelf life of document is ±5 years in accordance with the SOP (SOP/SPO/SMART/LH-02 dated July 1st, 2010) in the secretarial of each unit SPO


PRINCIPLE #2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

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

The company has shown several evidences about valid legal requirements compliance, local, national, or international, such as,: Local and National Regulation Compliance:

Forest Area Clearing according to the Decree of Forestry Minister Number 036/Kpts-II/90 on January 20th, 1990. It has been in accordance with the Decree of Forestry Minister and Plantation number 376 year 1998 concerning criteria of forest area procurement for palm oil plantation area.

Permit of Location according to the Decree of Riau Governor numberKpts.543/X/1986 dated October 8th, 1986. It has been in accordance with the Decree of Agrarian Minister, Head of National Land Agency Number 2 year 1993 according the procedure to obtain location permit and land rights for the company in order to capital investment.

Permit of separation of land management of PT Ivomas Tunggal, Number 1045/SD.01/11.94 on November 12th, 1994. It has been in accordance with the Regulation of Agricultural Minister number 26 year 2007 concerning guideline of plantation business permit.

Document of Land Use Title: Samsam Estate, Kandisa Estate and Palapa Estate already have Land Use Title Number. 1 of 1994 on 19 November 1988. It has been in accordance with the Government Regulation Number 40 year1996 concerning Land Use Title, Building Use Title, and Land Use Right.

There is Collective Labor Agreement in2013. It has been in accordance with the Law Number 13 Year 2003 concerning man power.

There is an evidence of worker’s Jamsostek/Labor Social Assurance payment in March 2013. It has been in accordance with the Law Number 13 year 2003 concerning man power and Decree of Labor Minister Number 150 year 1999 concerning implementation of labor social security for freelance, contract, and agreement of work in certain time.

There is a list of heavy equipments operator’s license, lift transport aircraft, welder, and mechanic. It has been in accordance with the Regulation of Manpower and Transmigration Minister Number 05 year 1985 concerning lift transport aircraft.

There is a list of machines and heavy equipments used by the company. It has been in accordance with the Regulation of Minister Number 4 year 1985 concerning machine permit, such as example :


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1. Boiler Number 2, with permit number : 03/A.0256.A. 2. Generator Number 3 with permit number : 560/DINSOSNAKER/X/2010/386.

There is a permit of waste water use produced by palm oil industry (number 06/BLH-S/KPT/2010)valid for 5 years since 25 January 2010.

International Regulation Compliance:

Law of the Republic of Indonesia number1 year 2000 concerning Ratification of ILO Convension Number 182 concerningViolations and Immediate Action for the Elimination of the Worst Job for Child.

Law of the Republic of Indonesia number20 year 1999 concerning Ratification of ILO Convension Number138 concerningMinimum Age allowed to work.

Law of the Republic of Indonesia number 21 year1999 concerning ILO Convension on the Discrimination in Job and Position.

Law of the Republic of Indonesia number 80 year 1957 concerning Ratification of ILO Convension number 100 concerning Remuneration for Male and Female for the Equal Work.

Law of the Republic of Indonesia number 7 year 1984 concerningRatification of ILO Convension Concerning Elemination of All Discriminations for Women.

The company has a document of Compliance Evaluationto the compliance of regulations, valid to 5 January 2013, by the Division of Head & Environment Sustainability. It has various regulations that must be complied by the complany. There is a document of regulation compliance list in 2013, such as Samsam POM :

1. Document of Compliance Evaluation to the regulation related with the updated permit on 1 March 2013, the number of regulations is 27.

2. Document of Compliance Evaluation to the regulation related with the updated environment on 2 January 2013, the number of regulations is 22.

3. Document of Compliance Evaluation to the regulation related with the updated manpower on 1 March 2013 the number of regulations is 38.

4. Document of evaluation to the regulation related with the Occupational Health& Safety, the number of regulations is 41, updated on 5 January 2013.

The mechanism of evaluation to the compliance of regulation is described in the SOP of Regulation and other Requirement (SOP/SPO/SMART/LH-03 by Division Head and Sustainability on July 1st2010) In the Chapter 6, action steps have been discussed, such as: assistant/controller of document is helped by staff of department related with the routine identification and verification every 6 months to related regulations, with sustainable palm oil production principle and criteria. There is also an evidence of evaluation to the newest regulation, such as Government Regulation Number 50 year 2012 concerning the Implementation of Occupational Health & Safety Management System in the document of Compliance Evaluation to the Regulation, completed with hardcopy of this regulation document. The company has an opportunity to further study wage calculation proportionally (working time) of freelance. It can be reviewed in accordance with the applicable regulations.


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

The company has ownership and use of land for plantation development and POM, based on these following permits:

In1984, PT Ivomas Tunggal has a Permit of Area Allocation according to the Decree of Riau Governor Number Kpts.532/XII/1984 on December 7th, 1984 concerning Land Allocation for in Bagan Sinembah Village Kubu Sub District and Simpang Libo Village Mandau Sub District Bengkalis Regency. Areal in Simpang Libo Village is currently used as Samsam Estate (2,846.076 Ha), Kandista Estate (3,884.89 Ha) and Palapa Estate 3.074.89 Ha).

In 1986, PT Ivomas Tunggal has a Permit of Area according to the Decree of Riau GovernorNumber Kpts.543/X/1986 on October 8th, 1986 concerning Location Permit and Right Acquisition/Land Purchasing for 45,879 Ha area in Mandau Sub District and Kubu Sub District, Bengkalis Regency for Palm Oil Estate managed by the COMPANY. Samsam Estate, Kandisa Estate and Palapa Estate are situated at Location 1 in Mandau Sub District (Libo I/12.370 Ha and Libo II/14.000 Ha). This decree is completed with Map of Location Permit, scale 1:100.000.

Approval of the Directorate General of Plantation through Letter Number HK.350/E4.516/10.88 on October 11th, 1988 concerning Approval of Palm Oil Estate Company Development on behalf of PT Ivomas Tunggal in Riau Province.


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In1990, PT Ivomas Tunggal conducted Forest Area Clearing according to the Decree of Forestry Minister Number 036/Kpts-II/90 on January 20th, 1990 concerning Clearing of Some Forest Area S. Tentara – Minda for ± 13,595 Ha, Forest Area S. Kandis – S. Penyalar for ± 14,500 Ha, Forest Area S. Basar – S. Rumbia for ± 9,398 Ha and Forest Area S. Dua – S. Bangko for 10,975 Ha in Bengkalis Regency, Riau Province for plantation area on behalf of PT Ivomas Tunggal.Samsam Estate, Kandisa Estate and Palapa Estate are situated in the Forest of Kandis River - Penyalar River.

In 1994, there was a separation of land management of PT. Ivomas Tunggal into PT. Salim Ivomas Pratama (Salim Group) and PT. Ivomas Tunggal (SMART Group) through the Letter of Plantation Agency, Riau Province Number IV/1045/SD.01/11/94 on November 12th, 1994 concerning Principle Permit Support to the Separation of Company Plantation Management, was initially has 53.370 Ha area with the following distribution:

a. Salim Group through PT Salim Ivomas Pratama taken and managed the plantation area in Kubu Sub District, Bengkalis Regency for 27,000 Ha.

b. SMART Group through PT Ivo Mas Tunggal in Mandau Sub District, Bengkalis Regency for 26,370 Ha areas.

Approval of Principle: Letter of Agricultural Minister Number HK.350/E5.790/12.94 on December 2nd, 1994 concerning the Approval of Palm Oil Estate Business Principle for 23,477 Ha areas in Mandau Sub District, Bengkalis Regency, Riau Province with net area is 23,477 Ha and capacity of POM is 120 Ton FFB/Hour.

Decree of Land Use Title : Certificate of Land Use Title Number 1 Year 1994 on August 18th, 1994 for 13,432.087 Ha area and valid to December 31st, 2028 and get extension and renewal of Land Use Title through the Decree of the Head of National Land Agency Number 150/HGU/BPN/2004 concerning Extension and Renewal of Land Use Title of land in Siak Regency, Riau Province, for 13,432.087 Ha area and extend for 25 years since December 31st, 2028 and Renewal Term for 35 Years since the end of extension period of the Decree of the Head of National Land Agency Number 150/HGU/BPN/2004.

Certificate of Land Use Title Number 1 Year 1994 on August 18th, 1994 for 13,432.087 Ha area and valid to December 31st, 2028 and get extension and renewal of Land Use Title through the Decree of the Head of National Land Agency number 150/HGU/BPN/2004 concerning Extension and Renewal of Land Use Title of land in Siak Regency, Riau Province, for 13,432.087 Ha area and extend for 25 years since December 31st, 2028 and Renewal Term for 35 Years since the end of extension period of the Decree of the Head of National Land Agency Number 150/HGU/BPN/2004. Its Operational Area according to the Decree of Land Use Title Number 1 Year 1994 is Sam-Sam Estate, Palapa Estate, Kandista Estate, Ujung Tanjung Estate, Sam Sam POM and Ujung Tanjung POM.

Certificate of Land Use Title Number 02 on August 12th, 1997 for 11,621.2 Ha valid to August 12th, 2032 (35 Years), with the operational area is Libo Estate, Sungai Rokan Estate, Nenggala Estate and Libo POM.

The company has demarcated the border area both in map and field. Based on the map of inventory and border maintenance, several following points were identified:

Samsam Estatehas 5 BM stakes and 9 IMT stakes.

Palapa Estate has 1 BM stakes and 3 IMT stakes.

The result of random boundary poles verification in the fieldwere: a. BM-13 (Division V- SSME); is border area of PT Ivomas Tunggal with Belakar VillageandIMT-04 (Division V-SSME);

border area ofPT Ivomas Tunggal with Belakar Village. b. BM01 andIMT 08 (Division 1-PLPE) andIMT 09 (Division 3-PLPE) all share the same borders with Bakalar Village Boundary poles are in the form of concrete, its size is 30 x 30 cm and height 60cm, red color and clear identity. In addition of National Land Agency boundary poles, the company also made a circle, its wide is± 4 meter and depth± 3 meter along the border of working area. There is overlap area in PT. Ivo Mas Tunggal area, according to the Map ofNumber OVERLAP -13 on 14 January 1994 – Revision 18 December 1994. There is an agreement of PT. Caltex Pacific Indonesia with PT. Ivo Mas Tunggal concerningActivity in Overlapped Area Number 2A/OVL-IMT/96, on Wednesday 8 January 1994. In accordance with the agreement ofMinister of Mining and Energy, Directorate General of Oil and GasNumber 613/337/DJM/1993 on 18 August 1993 and LetterNumber 30/337/DJM/1995 on5 January 1995, CPI (PT. CALTEX PACIFIC INDONESIA) and PT Ivomas Tunggal agree that the implementation of palm oil and its development of palm oil processing mill by PT Ivomas Tunggal inside the mining area of CPI must be in accordance with the requirements. Prospect of overlapped area has been signed in the map, such as:

1. Areal D (166, 047 Ha), Kandistasari Estate 2. Areal H (12,448 Ha), Samsam Estate


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3. Areal G (18,491 Ha) Samsam Estate

The main content of agreement: 1. Part or all area and/or area for the project of PT. Ivo Mas Tunggal is situated in the area formerly given as the mining area

of CPI (further known as “Overlapped Area”) so PT. Ivo Mas Tunggal completely realize about the consequence of activities by CPI.

2. PT Ivo Mas Tunggal agree to meet and conduct each activity plan in Environmental Management PlanandEnvironmental Monitoring Planof activity by PT Ivo Mas Tunggal that has been agreed related with activity by PT. Ivomas Tunggal or similar activity in overlapped area.

3. Pertamina and/or CPI will use some or all overlapped area where PT Ivo Mas Tunggal has right on this area so CPI will previously inform a month before and compensation will be given.

Based on the FGD result on 5 June 2013, attended by village heads, community figures, elder people from Sakai Ethnic, traditional leaders from Malay Ethnic, youth leaders, NGO, representative of government, member of parliament, there was no conflict on land between local citizens/community groups/residents and the company. The company has solved land clearing problem by conducting two methods, such as: 1. Land and Crops Compensation.

Land and crops compensation was given to community who has cultivated land and/or yard in the permitted location. This land and crop compensation process was conducted by negotiation and agreement process between the company and land and/or crops owners.

2. Sagu Hati Giving Sagu hati is given to community around the plantation area who do not have any cultivated land and/or crops in the permitted location. This given is intended as company’s concern to the community in surrounding.

The record of land right has been documented in Legal and Land Acquisition Document, consist of: 1. Statement Letter from land owner. 2. Statement Letter of Land Right Acquisition which is known by village head, representative of sub district. 3. Receipt of land/plant compensation payment 4. Minutes of Meeting of land/plant compensation payment known by representative of sub district, village head, traditional

leaders, Islamic leaders, community figures, and smart people. 5. Map of compensated land. The sample of land/crop compensation:

Set of land compensation payment document for several lands in the company’s working area. Land compensation was gradually paid in 1980 – 1995. Land payment was followed by agreement, receipt, and witnessed by village and sub district officers.

Statement of hand over of land in Sam-Sam/Belutu/Kandis Villages for 26.370 ha. Negosiation was conducted on 3 November 1986 on behalf of community of Sam Sam Village. It was also followed by the name of compensation beneficiaries and receipt of compensation payment.

Sample of Sagu Hati Giving: There was a document of sagu hati giving to several community groups around the plantation area November 1986. All documents of compensation payment and capital assistantship have been recorded and well stored by the company and available in the Representative Office in Pekanbaru. There is a mechanism of dispute solving:

SOP of Land Conflict Solving, Number of document: SOP/SPO/SMART/LH-04. Its scoping area is all activities related with land conflict solving activities in the plantation area and its processing unit.

SOP of Claim and Unsatisfaction Solving, Number of document: SOP/NP/SMART/XII/MCA/2011, valid from August 1st, 2010.

The implementation of this SOP can be realized by providing Complaint Book at each estate. It can be used to record and monitor each complaint from many parties that potentially become source of conflict.



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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 theinformationfrommanagement of PT. Ivomas Tunggal (Ms. Evi from the Dept. of Legal PSM V) that there is no traditional community in PT. Ivomas Tunggal, especially Sam-Sam Estate.

Based on theFGD result on 5 June 2013 attended by local government officer, community figure, NGO, and community figures, there are no traditional rights and/or tenure rights.

Based on theresult of High Conservation Value, there is also no traditional community in this area. Siak people are currently live harmoniously with the immigrant.

Based on theinformation from the Head of Plantation and Forestry Agency in Siak Regencyand Land Office ofSiak Regencythat there is no tenure right in this area.


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.

There is a working plan for 3 years by PT. Ivo Mas Tunggal period of 2013 – 2015. In this working plan containing data FFB yield/ha, OER, CPO yield/ha, cost production-estate and mill, FFB projection from 7 Estate, capacity of POM, Trend of Palm Product (TBS, CPO, PKO), CPO price estimation, replanting plan, general cost and profitability. There is a trend of profit decreasing because of wider replanting area and FFB production decreasing. For monitoring, there is a systematic monitoring to ensure using cost, such as manager monitoring ever month, audit from AAA and MAA Dept, and management review every year.

There is plan of replanting program in 2013-2017 at several plantation units of PT. Ivomas Tunggal such as Libo Estate, Sungai Rokan Estate, Nenggala Estate, Ujung Tanjung Estate, Palapa Estate, and Kandista Estate as follow:

Kebun 2013 2014 2015 2016 2017 Total

LIBE 295.70 421.24 497.10 225.82 1.439,86

SRKE 584,37 548,41 810,57 1.943,35

NGLE 457,47 221,35 738,64 547,66 1.965,12

UTNE 466,16 793,26 1.259,42

PLPE 559,35 254,75 227,57 731,81 2.177,70

KNDE 561,17 561,17

Total 1.267,99 1.905,88 1.999,59 3.094,87 2.851,77 11.120,10

Each replanting program is always reviewed every year through budgeting meeting and management meeting. All documents and replanting program have been available in all management units.


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

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

The company has several operational procedures, such as: 1. SOP – IK Palm Tree Cultivation Technique (MCAR, 2012) discuss about the activity from land clearing to harvesting

activity, as follow: • Chapter1: SOP New Development Planning Area. • Chapter2: SOP Replanting Planning. • Chapter3: SOP Nurseries. • Chapter4: SOP Land Clearing. • Chapter5: SOP Planting. • Chapter6: SOP Replanting. • Chapter7: SOP Control of Pest and Plant Disease. • Chapter8: SOP Weed Control.


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• Chapter9: SOP Fertilization. • Chapter10: SOP Maintenance Immature plants • Chapter11: PathwaysToward theHarvest. • Chapter12: SOP Maintenance Mature plants. • Chapter13: SOP Harvest. • Chapter14: SOP Loading and Transportation FFB. • Chapter15: SOP Precipitation Measurement with Ombrometer.

2. Operational procedures at mill can be found in Management Committee Manufacturing Division (MCMD) Revision 4, Number of Reference: 01-02/MAA-MCMD/1 per February 14th, 2012). It describe about the SOP of palm oil processing from: FFB receiving station, boiling/sterilization stations, threshing station, pressing station, clarification station, nut and kernel station, boiler and machine room station, water treatment station, final effluent station, and tank storage station.

3. Procedure for Dispatch CPO & PKO can be found in: SOP of CPO and Kernel Production Delivery (PT. IMT-UTJM/SOP/07) per July 1st, 2011. It describe about: purpose, scoping, duty and responsible, definition, description of receiving procedure (Delivery Order), CPO tank truck and kernel truck loading, CPO tank truck and kernel truck loading unloading, appendix, and controlling of document.

Based on the result of observation to the operational of estate and POM, the company has establised these procedures. Monitoring and checking to estate and mill operational has been routinely conducted once a year in the form of operational internal audit activity, audit agronomy & advisory of estate, mill audit & advisory of POM. There is a sample of monitoring and checking activity as follow: Estate: Operational Internal Audit : 1. Report of Operational Internal Audit Samsam Estate (SSME) on 8-14 August 2012 with 4 findingsand all of them have

been followed, for example: overhaule generator cost that reach 73% from the newest price, it is known that the this generator has been budgeted as much as Rp.100.000.000 (according to thebudget of 2012). Then, overhaule generator cost will be compared with the price of new generator.

2. Report of Operational Internal Audit Samsam POM on 24-31 October 2012 with 8 findingsand all of them have been followed, for example:result of oil analysis was not received by unit and it has been improved with several improvement such as ensuring oil analysis was received by unit.

Agronomy Audit & Advisory andMill Audit & Advisory : 1. Report ofAgronomy Audit & Advisory Palapa Estate (PLPE) on24 May 2012 with 9 findings, such as: imperfect transport

net installation for fresh fruit bunch and less tight chain (sample of 4 trucks), improvement actions were in the form of open net prime intensive payment for driver or open net staff workers.

2. Mill Audit &Advisory Samsam POMon8-13 March 2013 with 21 findings and all of them have been followed, such as: a late of processing start; followed by: coordination with estate to fasten Fresh Fruit Bunch delivery.

There is a record of operational activity report at Samsam Estate and Palapa Estate in the form of monthly production report, fertilization report, spraying report. There is also a record of activity report at Samsam POMin the form of Monthly Processing Report such as in March 2013, it describe: log sheet process and throughput, processing obstacle, need of shell, FFB intake, manager report, etc.


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

The company has routinely analyzing soil and leaves in accordance with the program. There is a sample of result of soil and leaves analysis, such as: Soil analysis:

Samsam Estate: there was a result of soil analysis on 24 January 2012 (Number Ref 301/TANAH/LAB-SMARTRI/I/2012) for150 samples from Samsam Estate.

Palapa Estate: there was a result of soil analysis on24 January 2012 (Number Ref 304/TANAH/LAB-SMARTRI/I/2012) for 108 samples from Palapa Estate.

Leaves analysis:


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Samsam Estate:There is a result of leaves analysis on 24 April 2012 (Number Ref 165/DAUN/LAB-SMARTRI/IV/2012) for20 samples (N, P, K, Mg, CA, B). Measured parameter were texture, acidity (pH), content of C, N, P, K, Mg, Ca, Na, BS, CEC, Al, and H. Soil sample was taken from palm oil tree3 years old, 8 years old, 13 years old, 18 years old, 23 years old, and before replanting, or immature, young, and mature plants.

Palapa Estate: There is a result of leaves analysis on 13 April 2012 (Number Ref 101/DAUN/LAB-SMARTRI/IV/2012) for 2 samples (N, P, K, Mg, Ca, and B). Measured parameter were texture, acidity (pH), content ofC, N, P, K, Mg, Ca, Na, BS, CEC, Al, and H. Soil sample was taken from palm oil tree3 years old, 8 years old, 13 years old, 18 years old, 23 years old, and before replanting, or immature, young, and mature plants..

These two analyses can be used as the consideration base in determining recommendation for fertilization. The company also do monitore & record rainfall every day. The data was used in proper water management & as consideration in planning monthly programme. There are several conducted actions to maintain soil fertility such as selective spraying, soft fern letting as cover crops, empty fruit bunches application, use of waste water fromPOMas fertilizer, and fertilization according to the recommendation of fertilization program from R&D Department. There are several samples about these activities at Samsam and Palapa Estate as follow:

Legume cover crops: at replanting area of Samsam Estate planted withMucuna bracteata (MB) as many as408 trees/ha soft fern letting as cover crops. There is a program and realization of legume cover crop program in 2013 at SSME for 514.82 Ha areas and the realization to July 2013 was 314.83 Ha. There is a sample of MB planting activity at SSME on 1 June 2013 atBlock K8 (32.27 Ha) in3 Ha.

The use of empty fruit bunches at Palapa Estate to April 2013 andtarget 250.18 Ha as many as 17.02 Ha, 1,021 ton in May 2013.

Program & Realisation of Liquid Waste or Land Application in 2013 PLPE for Block: F21-F26, G21-26 (309 Ha). For example: Land Application Program inJanuaryto April 2013 as many as38,625,000 m3and it has been conducted inJanuary- April 2013 as many as 44,339,000 m3, because there was additional runoff inJanuaryandFebruaryfrom 10 hours per day to 16-17 hours.

Report of fertilization which based on the recommendation and conducted according to the minimum rainfall 50 ml per day for a week, for example at Palapa Estate fromJanuaryto April 2013 width area of 2,898.68 Ha, for example urea fertilizer in April was applied as many as 66,850 kg for 619.33 Ha area.


4.3 Practices minimize and control erosion and degradation of soils.

The company had conducted Semi Detail Soil Survey in 2006 at each estate. The information describes about the map of topography, soil texture, depth, marginal land, and land conformity class. Rainfall was monitored & well recorded ever day at every estate. The data was used in proper water management & as consideration in planning monthly programme. Management strategy for planting in area with certain slope is described in the document of Land Clearing SOP (SMA/MCAR/05/05-07). This procedure describe about land management strategy (land conservation). Based on the result of field survey to Samsam Estate, Division V, Block L11 and L10, fern (Nephrolepissp) has been used as land cover crop and midrib preparation. The company has road maintenance program in 2013 and it has been realized. Based on the field survey to Ujung Tanjung Estate, road was in good and well maintained condition. Management strategies of marginal land and other critical lands are described in MCAR, such as:

Area with topography 15 – 40%, is managed by making conservation terrace, contour terrace, horse-shoe with silt - pit, conservation plant planting such as vetiver grass and legume.

Blocked drainage area is managed by ditch or drainage channel making.

Sandy area (based on the land texture classification of more than 70% of sand and less than 20% of clay) is managed by empty fruit application.


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


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Water management and water source maintenance according to the Implementation Report of Environmental Management Plan - Environmental Monitoring Plan (RKL - RPL) semester 2 of 2012 such as; a. Liquid waste utilization for fertilizer application in plantation area (Land Application) b. Housekeeping at the mill. c. Making grey water channel from the mill to Waste Water Pond / Disposal so there is no liquid waste in water body d. Isolation in area around workshop, warehouse, and generator to avoid spill of fertilizer, pesticide, diesel, and used oil

that potentially able to directly contaminate the environment. e. Management of Hazardous and Toxic Waste. f. Reuse of waste water from used pesticide packaging containing Hazardous and Toxic Waste; re-dissolve in the next

pesticide mixing. g. Scrap metal pile on the water resistant floor and complete it with roof h. Natural vegetation conservation in low area that always flooded by water as catchment area. i. Natural vegetation conservation in radius 50 m in the left and right of tributary as green belt j. To make biologically water pollutant control pond such as water vegetation maintenance. k. The company have SOP Riparian zone protection No. SOP/SPO/SMART/LH-06, July 1st 2010.

To conduct several efforts to prevent erosion and sedimentation such as; a. Technical cultivation conservation by applying cover crops such as empty fruit application, midrib on sloping land, vetiver

grass planting Vetiveria zizanoides in cliff area and trenches area, bamboo/quatemala grass planting along the riparian area.

b. Technical civil conservation building such as terracing, horse-shoe/hooves, silt - pit, cerucuk, and dike with bags filled with soil.

c. Planting and enriching natural vegetation as wide as 50 m in the right and left tributary and river as greenbelt and help to clean sedimented river lane.

To prevent pollution, the company has conducted water quality monitoring in; a. Land application (monitoring well) b. Waste pond every month. c. Water flow of Angek Tapuak River as the nearest flow from Samsam POM (before and after POM location). d. Flow of Bekalar River (inlet and outlet) e. Water source (well) in the housing area of worker.

Plan of water quality monitoring of surface water used by the community has been written in the Document of Environmental Management Plan-Environmental Monitoring Planb y PT Ivomas Tunggal which only required for water quality monitoring in Palm Oil Procesing (POM) and monitoring period per 6 months by the Coordinator of Water Test and Environment, Public Works Agency, Riau Province to the river before mill and after mill by using Water Quality Standard, Class II (in accordance with the Government RegulationNumber 82 Year 2001). Company has monitored water surface quality both Sam-Sam and Kandista every 6 month and tested by accredited laboratory based on Government Regulation Number 82 Year 2001. Based on the result of surface water quality test that conducted by Dinas PU Laboratory (Acrredited by KAN) at 2 sampling point income and outgoing to natural waterways in Palapa Estate, there are conformity with Government Regulation Number 82 Year 2001 for Water Quality Standard, whereas the result of surface water quality test that conducted by SMARTRI Laboratory (accredited by KAN) at 2 sampling points from Sam sam Estate (Block H-20 before Sam-Sam POM and Block E-20 after Sam-Sam POM), TSS parameter was above its required quality standard as stipulated in the Government Regulation Number 82 Year 2001 for Water Quality Standard, Class II. The result of TSS test taken from Block E-20 showed 65 mg/L while the quality standard is 50 mg/L. Nonconformities please see CAR 2013.03 with minor category. Verification on13 June 2013 The company has identified the cause of this high TSS and several actions have been conducted for improvement and prevention. Based on the result of review on 5 June 2013, TSS parameter has been under quality standard. The implementation of water management and prevention of surface water will be conducted in the next visitation. Nonconformities CAR 2013.03 with minor category has been closed


ASSESSMENT REPORT


Based on the field survey at Division III Palapa Estate, source of water/lake was identified. It is used for bathing and washing However, there was sign on the use of herbicyde (spraying) in the side of lake. Nonconformities please see CAR 2013.03 with minor category. Verification on13June 2013 PT. Ivomas Tunggal has identified the potency of water source (lake). The company has composed several programs related with the prevention and management of this lake. Several programs that have been conducted was socialization to the employee concerningwater management at lake. There is a record of sociliazation of to spraying staff of PLPE (7 people) at Block G13, Division 3, PLPE on 5 June 2013. The implementation of all lake prevention and management will be observed in the next visitation. Nonconformities CAR 2013.03 with minor categoryhas been closed Liquid waste BOD monitoring at POM Samsam has been checked every month at the laboratory of SMART Research Institute (SMARTRI) that has been accredited by KAN. BOD still met its quality standard< 5.000 mg/l as stipulated in the Regulation of Riau Governor Number 35 Year 2007 concerning liquid waste quality standard and Decree of Environmental Minister Number 29 year 2003 Guideline of Requirement and Method of Waste Water Use Permit from Palm Oil Industry in soil of Palm Oil Estate. The result of BOD Period – April 2013: January 2013 was859 mg/L, February2013 was 901 mg/L, March 2013 was1,420 mg/L andApril 2013 was923 mg/L The company has recorded water use for processing need and non-processing (housing, office, and laboratory), and calculate the ratio of water use per ton FFB, such as ratio of water use in 2011 was 1.14 m3/ton FFBand in 2012 was 1.18 m3/ton FFB. The company has analyzed and evaluated the use of water, such as analysis and evaluation to the increasing of water in 2012 such as caused by many workers’ parties and increasing company’s guest. Sam Sam POM has recorded the use of water every day and it was well recorded.

Minor 4.4.1 Status: Closed

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

The company has implemented an integrated pest and disease control. It was started with the detection, census, and evaluation as well as natural enemies of plant disease and pest. There are some samples of integrated pest control at Samsam Estate such as:

Cencus program of rat is conducted every three months. There is a sample of census result in April 2013 atDivision 3 SSME (wide area ofDivision = 706.,51 H) total census 4,848 census; sample 5% for eachBlock; total sample 4,718 census; the average light attack is 1.02 - 2.6 %.

UPDKS Detection Program (Palm Leaves Catterpillar and Bagworms) every 2 months such asDivision 3 SSME, there is a sample inMarch 2013 with the average result: wide area of Division 706.51 Ha; the amount of light attack 380 trees; normal 620 trees.

Program of Tyto alba monitoring: every month. There is a sample of recapitulation data of owl nest andTyto albaatDivision 3 SSME the amount of owl nest is 25; active is 11; improvement is14; amount of egg is 1, amount of babies 2. Total, in 1 Estate there are 92 owl nest, 50 active, 42 inactive, the amount of egg is 31, the babies are 8, mature owl is 95 (per April 2013).

Host Plant Maintenance Program and planting/inserting atDivision 5 year 2013 semester I/II Samsam Estate to April 2013 with program area 210.39 Ha every month; and the realization every month until April 2013 was 210.39 Ha.

Weed control program was conducted by using 2 control programs such as systemic herbycide, 1 contact herbicide, and 2 manual control.

There is a list of attendance in Training of Integrated Pest Management on 5 September 2012 at Sungai Rokan Training Center, attended by 20 Assistant of Division from all Estates in the company and worker. The theme of this Integrated Pest ManagementTraining was: Integrated Pest ManagementUPDKS (Nettle Caterpillars and Bagworms), Rat Concerning: the understanding of life cycle and its control, Tyto Alba breeding and release as well as its maintenance in the field. There is also a record of Training of Limited Pesticide Use in 2013 on 28 March 2013. It was attended by all members from the representative estates. Based on the field survey to the owl nest at Block G21 Division 2 PLPE and H26 Division 3 SSME, nest was actively occupied by owls.


ASSESSMENT REPORT


There was a document of monitoring to the use of active ingredients of pesticide per hectare, such as at Samsam Estate : The amount of active ingredients per ton FFB for April 2013 is presented as follow:

Product’s Name

Active Ingredients

%Active Ingredients

Application number

(Liter or Kg)

Total Active Ingredients

(Liter or Kg)

FFB Production

(kg) Pesticide Unit

Erkafuron Metil metsulfuron

0,2% 6,01 1,2 kg 4.322.480 0,0000003

Roll Up IsopropylAmineglyphosate

0,41 40,50 liter 16,61 4.322.480 0,0000038

Rolixone Paraquatdichloride

0,42 49,60 20,83 4.322.48 0,0000471


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.

The company have list pesticide used as follow:

NO Name Active Ingredients Type Pesticide License Date License Number

1. Erkafuron Methyl Metsulfuron Systemic 23 June 2016 RI.0103200620062405

2. Rolixone 276 Exel Paraquat dichloride Contact 23 June 2016 RI.01030120062467

3. Roll Up 480 SL Isopropylamineglyphosate Systemic 30 April 2014 RI.2133/4-2009/T

4. Basta 150 SL AmmoniumGlifosinat Systemic 15 January 2014 RI.1113/12-2008/T

5. Garlon 670 EC Tricopyr Systemic 16 October 2016 RI.695/9-2006/T

The company has a document of Agrochemical Use Recapitulation and Division Working Program Recapitulation Document. It describes wide area of application, volume, working day, use material, dose per hectare, and rotation per chemist type activity per year. For example, spraying at the circle and harvesting path for wide leaves weeds and grasses control at:

Palapa Estate untilMarch 2013 by using roll up (glyphosate) as much as 726.71 liter in area for 2,941.23 Ha, so the use per hectare is 0.25 liter/Ha. Rotation per use is 2 times in 1 year. The use of worker per hectareis 0.18 HK/Ha.

Sam Sam Estate to April 2013 useroll up (glyphosate) as much as 568.72 liter in area for 2,311.77 Ha, so the use per hectare is 0.25 liter/Ha. Rotation per use is 2 times in 1 year. The use of worker per hectareis 0.20 HK/Ha.

The company has conducted training on the proper use of pesticide (right way, right type, and right target), for example Training of Limited Pesticide Use by Pesticide Commission of Pekanbaru cooperated with PT ROLIMEX for spraying worker at Region Siak (PT IMT). It was attended by 146 participants. Pesticide packaging waste is managed according to the SOP of Waste Management (SOP/SPO/SMART/LH-09). Based on the Letter from the Environmental Ministry Number B-3020/Dep.IV/LH/PDAL/02/2012 on 21 March 2012 as well as minutes of meeting with the representative of Environmental Minister (Amsor) on 13 April 2012, used pesticide packaging can be washed so it does not contain Hazardous and Toxic Waste. Used waste water can be reused for the next pesticide mixing process and washed packaging container can be stored at specific warehouse to be then delivered to supplier. There is a use of agrochemical with paraquate active ingredient namely Rolixone. The company has a policy to decrease the sustainable use of paraquat by decreasing the amount of its use every year. This policy is signed by Vice President of Agronomy (VPA) ofSinar Mas Estate (PSM) 5. There is a record of paraquate use since 2011 to 2013, as many as 50 liter (5%) at Palapa Estate from 2011 to2012. There is also a use of brodifacum atPalapa Estate as many as10 Kg in 2013. Brodifacum is only used at research blockand its used does not continously conducted. Medical checkup program for spraying operator is regularly conducted two times a year. Checking was conducted by company’s doctor and laboratory test was conducted by Thamrin Clinical Laboratory in Pekanbaru. Last checking was conducted in December 2012 for spraying operator at Samsam Estate (12 people). The medical checkup result showed that the condition of workers were good and able to work. Based on the interview result with spraying workers at Samsam Estate


ASSESSMENT REPORT


andPalapa Estate medical checkup had been conducted for physical checkup, blood test, urine test, and x-rays. The company has a policy not to employ pregnant woman and breastfeeding mom in spraying section in accordance with the Letter of PSM 5 Number 001/SE-VPA-5/SPO/07/2011 on 8 July 2011. Based on the interview result with spraying operator atSamsam Estate and Palapa Estate there was no pregnant woman and breastfeeding mom in this area. The workers have understood about prohibition for pregnant woman and breastfeeding mom to work as spraying worker.


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

The company has shown a document of policy on Occupational Health & Safety program, as follow: 1. Policy of Occupational Health & Safety in PT. Ivo Mas Tunggal, valid from on 1 August 2012 (it describes about the

decree of each worker responsibility such as The Responsibility of Management and Responsibility of Worker). 2. Occupational Health & Safety Management System, published on 1 August 2012 and approved on 7 September 2012

by Guiding Committee of Occupational Safety & Health of PT. Ivo Mas Tunggal (Change of Guiding Committee of Occupational Safety & Health Structure), number of document is SPK-01.

In addition of policy on Occupational Health & Safety, the company also showed related SOPs Document with Occupational Health & Safety, for example: SOP of Determination, Maintenance, and Communication of Policy of Occupational Health & Safety, SOP of Hazard Source Identification, Assesment and Control, SOP of Occupational Health & Safety Program, etc (there are 26 SOPs related with Occupational Health & Safety). PT Ivomas tunggal (POM LIbo, Kebun Libo and Sei Rokan Estate) has shown the evidence of implementation of Occupational Health & Safety policy in the form of: a. Report of Guiding Committee Of Occupational Safety & Healthis reported every 4 months to the Social and Labor

Agency at Samsam Estate on10/4/2013; Palapa Estate on 30 March 2013; Samsam Mill on10/04/2013. b. Document related with the procurement of Personal Protective Equipment such as minutes of meeting ofPersonal

Protective Equipmenthand over and monitoring report on the use of Personal Protective Equipmentevery month. The company appoint people who are responsible in Occupational Health & Safety, program. There is Guiding Committee of Occupational Safety & Health for three visited units and it has been approved by the Ministry of Manpower and Transmigration Siak Regency, Structure of Guiding Committee of Occupational Safety & Health for Samsam Mill approved byLabor AgencySiak Regency, on 8 August 2011, Number 560/Dissosnaker/SK-P2K3/668.Eachunit has an Expert of Occupational Health & Safetywho has get Decree of Appoinment to related institution as the secretary in the structure of Occupational Health & Safety. The sample of certificate of Occupational Health & SafetyExpert on behalf of Ari Ansary Daulay (Certificate ofOccupational Health & SafetyExpert Number2222/AK3/U/X/2011, on 6 October 2011, published by the Ministry of Labor and Transmigration. PT Ivomas Tunggal also has licensed central clinic and company’s doctor who has Doctor Practice Permit (SIP) and has attended Occupational Health training. There was a document of Occupational Health certificationNumber 15.640/DH – IV/06 on behalf of dr. Endang Ariwahyuni (General Doctor) published in April 2006 by the Minister of Labor and Transmigration&Permit Letter of the DoctorNumber 440/Binkes/SIP/12/2011/73 published on 21 December 2011 by the Head of Health Agency ofSiak Regency. There is also minutes of meetings of monthly Occupational Health & Safety for example, minutes of meeting on 28 March 2013 that describe about Review of monthly report in February (Update data for Reaudit RSPO) and preparation of pre audit RSPO (Amaran Occupational Health & Safetythat need to be improved). PT Ivomas tunggal has a policy to provide Labor Social Assurance program including BHL as stipulated in the document of Collective Labor Agreement that has been registered in the Directorate General of Industrial Relations Number 191/PHIJSK-PKKAD/PKB/XII/2012 on 17 December 2012 valid from 14 Nov 2012 - 13 Nov 2014, in section XIV concerning Social Security and Social Assistance, PT Ivomas Tunggal showed the receipt of payment for Labor Social Assurance for example the receipt of payment for Labor Social Assurance for Samsam Estate for payment of April 2013, paid on 15 May 2013, SKU with the number of workers as many as 355 people and Jamsostek BHL for 321 people. PT Ivomas Tunggal showed SOP of Medical Checkup number: SOP/SMK3/SMART/LH-23, valid from 1 July 2010, there is an


ASSESSMENT REPORT


early checking, routine, and special. Routine health checking is conducted one a year gradually. Physical checking is gradually conducted every month and checking to Cholinesterase, Spirometer and Audiometry in June and December. Medical checkup is conducted to physical test, blood test, urine test, audiometry, and x-rays. Routine medical checkup is conducted for workers, there are two types such as general check up (at plantation clinic by certified doctor from Occupational Health on behalf of Endang (Sertifikat Hiperkes Number 15.640/DH – IV/06):) and special check up cooperated with the Laboratory of Thamrin Clinic in Pekanbaru The company showed the report of risk analysis result such as Identification of Hazard and Risk Assessment at Ujung Tanjung Mill and Ujung Tanjung Estate valid from January – December 2013 composed by the secretary of Guiding Committee of Occupational Safety & Health, and study of document. Based on this document of identification of hazard and risk assessment, several facts were identified such as type of activity (routine, non routine, and emergency), source of activity, impact, control and initial risk analysis (probability level, severity level, and risk level). The level of risk is divided into E: Extreme, H: High, M: Moderate and L: Low. It is analyzed according to its probability and severity. PT Ivomas Tunggal also showed the follow-up form of risk analysis, for example as Identification of Hazard and Risk Assessment (ISBPR) of Sam Sam Estate valid from January-December 2013. The company showed training program for 2013 such as worker training program at Palapa andSamsam Estate showed training program in 2013 is emergency response plantraining. It is planned in September, training ofHazardous Material monitoring is planned inMay, land fire simulation is planned in September, housing fire is planned in September, earthquake emergency response is planned in December, Training of first aid is planned in October and it was then conducted in April 2013 and training of spraying workers was planned in April and then was also conducted in April. There was a document of training realization in the form of training report, such as: training report of First Aid Emergency conducted by dr. Yossi on 26 March 2013 at club house room of Samsam Estate. The material of training was First Aid Emergencyand attended by 90 workers. The documentation is showed by pictures of training for PT Ivomas Tunggal Siak Region. There are certificates of worker training in accordance with the competence, such as Certificate of Competence Number 28 126 72 12 0015437 2011 on behalf of Dwi Sugiyanto (welder) at workshop of Sam Sam Estate published by the National Agency of Profession Certification (BNSP) –Profession Certification Institution of Metal and Machine in Indonesia, on 1 December 2011. There is a document of SIO recapitulation and certificate of operation at Samsam Mill, for example : Certificate of Boiler operator on behalf of Hasan (Steam Aircraft Operation Class I) Number 48/P2K/OP/III/06 on 27 March 2006, and certificate of welder on behalf of Suparman number of registration is LOG 004 03501 2012 from National Agency of Profession Certification, valid for 3yearson 17 December 2012 PT Ivomas Tunggal showed Procedure of Emergency Response, number of document is SOP/SMK3/SMART/LH-09, on 1 July 2010. There is also a document of organization structure of emergency response team, the structure of management consist of: trustees, chairman, secretary, head of fire team, group of fire poison, group of sand/mud, group of wet burlap, groupof gaff hooks, security group, removal group, connecting group, and evacuation group The company provides First Aid Emergency boxes at the field and high risk buildings. The company showed document of Map of First Aid Emergency Boxes Location, Minutes of meeting of boxes and medicines for First Aid Emergency and monthly monitoring report of First Aid Emergency boxes are available, for example Report of First Aid Box Checking at Samsam Mil on2 May 2013 was conducted in accordance with the SOP. It is conducted every month, report of checking for laboratory, processing office, warehouse, office, workshop, and IPAL. The company can reevaluate the completion of equipment for First Aid Emergency in accordance with the guidebooks of First Aid Emergency. PT Ivomas Tunggal has conducted first aid training to the workers. There is a report of first aid training by dr. Endang AWon26 March 2013 atclub house SSME. The company also has appointed person in charge for first aid kit boxes in the buildings and fields, for example, there is a notification letter of first aid kit officer on behalf of Res Danangjaya SP, on 11 July 2011 Number 01/PLPE/07/2011, as first aid kit officer atPalapa Estate, and certificateNumber 506/P3K/VII/11 from the Ministry of Labor and Transmigration of the Republic of Indonesia on 8 July 2013. PT Ivomas Tunggal documented and stored the record of accident. The document of this working accident is also reported in the form of FR and SR monthly report for a year. The company also investigated each working accident. Each working


ASSESSMENT REPORT


accident is regularly monitored in the meeting of Guiding Committee Of Occupational Safety & Health, sample of document of regular working accident monitoring evidence in the form of recommendation letter from the secretary of Guiding Committee Of Occupational Safety & Healthto the head of Guiding Committee Of Occupational Safety & Healthon 16 Feb 2013 and 27 April 2013 showed by Palapa Estate concerningrecommendation of improvement by the company, the company recommend to increase the awareness at work and to ensure ergonomic (position and attitude) at work.


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

The company has a matrix of training identification for staff and worker such as: understanding of RSPO/ISPO, ISCC, GHG, environmental aspect, SAP, sexual harassment, SOP of plantation, High Conservation Value, BMDP, SMDP, MMDP, Integrated Pest Management, OUR SHARE VALUE, balance making, payroll, effective briefing, Leaf Sampling Unit (LSU)/Soil Sampling Unit (SSU). Training for worker of POM such as: Bearing workshop, operator of steamer, generator, turbines, welder, heavy equipment, SOP of loading ramp management, SOP of sterilizer station, SOP of hoist craft and tresher, SOP of Pressing, SOP of clarification station, engine room, SOP of boiler station, water treatment, welder, SOP and PCM of laboratory, SOP of grading station, SOP of dispatch oil and kernel, understanding of SOP ISPO. Based on the matrix of training identification, training program in 2013 was then formulated such asgeneral training program for staff andnon staff of Samsam Estate in 2013, for example: Training of integrated pest control was planned in July, LSU training was planned in January, Best Solution Analysis training was planed in April, SSU Training was planned in January, Security Officer Basic Training was planned in November, train the trainer training was planed in August, Score Card Training was planned in October and problem solving training was planned in September. The company showed a sample of result about realization of training that has been programmed such as report of training from the pesticiede commission on 28 March 2013. The company committed to use trained contractor. The company has SOP of contractor controller with the number of SOP is SOP/SMK3/SMART/LH-26, that regulate the requirement of contractor in section 6, part a: contractor selection should concern Occupational Health & Safety Aspect, Permit, Use of Heavy Equipment, and Operator Permit. The company also has several training program for contractor, such as socialization report for Palapa Estate contractor on 28 January 2013 at the Main Office of Palapa Estate. The material of this training was: SOP of contractor and labor monitoring, Occupational Health & Safetyand the use ofPersonal Protective Equipmentto the contractor, Understanding ofRSPO/ISCC. It was attended by 5 people from the representative of contractors. It was written in the Labor Agreement Letter of contractor inclause 5 concerning Specification and Requirement of Job concerning technical requirement that has been established by the company and must follow the regulation ofmanpowerand general requirement in this job implementation. The requirement of supervisor is also regulated that supervisor must be an expert, experienced, and full time. The sample of Labor Agreement Letter with the contractor is SPK 005/SSMM/LKL/05/2012 for the procurment ofService Uniform.


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

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 Ivomas Tunggal has Environmental Document that consist of; a. Environmental Evaluation Study (SEL) that has been approved by the Commission of Environmental Impact

Assessment (EIA), Agricultural Department through Approval Letter Number RC.220/1052/B/VI/93 on 22 June 1993. b. Environmental Management Plan (RKL) of Palm Oil Estate and Palm Oil Processing of PT Ivomas Tunggal that have

been approved by the Commission of Environmental Impact Assessment (EIA), Agricultural Department through Letter Number 129/RKL-RPL/BA/XII/94 on 08 December 1994.

c. Environmental Monitoring Plan (RPL) ofPalm Oil Estate and Palm Oil Processing of PT Ivomas Tunggal that have been approved by the Commission of Environmental Impact Assessment (EIA), Agricultural Department through Letter Number 129/RKL-RPL/BA/XII/94 on 08 December 1994.


ASSESSMENT REPORT


The wide area of study location in the Environmental Evaluation Study was 46,000 Ha (included PT Salim Ivomas) and four POMs: 3 POMs have capacity of 30 Ton FFB/Hour that can be developed into 50 Ton FFB/Hour and 1 POM capacity of 30 Ton FFB/Hour. There was also revised environmental document namely Environmental Management Plan - Environmental Monitoring Plan (RKL - RPL) based on the Recommendation of Revision in Environmental Management Plan - Environmental Monitoring Plan (RKL - RPL)and Environmental Impacts Management Agency (Bapedal) of Riau Province Number 660.1/Bapedal Prop.AM/232 on 3 May 2006 and its scoping area is 2 Land Use Title for 25,053.287 ha and 3 Palm Oil Mills, respectively has the capacity of 60 Ton FFB/Hour. The company routinely compose Implementation Report of Environmental Management Plan - Environmental Monitoring Plan (RKL - RPL)report it every semester for example; Implementation Report of Environmental Management Plan - Environmental Monitoring Plan (RKL - RPL)semester 2 Year 2012 reported to Environmental Agency of (Environmental Agency) Siak Regency and received by Environmental Agency (Ms. Tanti) on 10 April 2013. Related institution explain that there was no complaint about the environmental pollution caused by the company both liquid waste and solid waste. Liquid waste from the company is flowed as land application. Environmental Management Plan - Environmental Monitoring Plan (RKL - RPL) were also submitted to the Center of Sumatera Eco region Management, the Environmental Ministry of the Republic of Indonesia. It had been received by Ms. Yeni (the secretary of the Head of Cultivation and Preservation of the Environment of Sumatera Region) on 22 May 2013 and the Head of Deputy Assistant of Agroindustry Pollution Control, the Ministry of Environment, received by Mr. Wahyu (Staff of Deputy Assistant) on 4 April 2013. The result of FGD on 30 May 2013 attended by stakeholders showed that there was no complaint about the environmental pollution caused by PT. Ivomas Tunggal.


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.

The company has identified HCV in 2009 conducted by HCV Identification Team, Environmental Department of PT SMART Tbk by using the Guideline of High Conservation Value Area Identification in Indonesia published by the Consortium of HCV Revision toolkit Indonesia June 2008. There were 5 people who conduct HCV Identification activity. There were 3 people including head of team who have been approved by RSPO. The result of HCV identification and program was evaluated and peer reviewed by external reviewer, Mr. Purwo Susanto (Approval of RSPO). Based on the result of HCV identification, there were several protected animal according to the Government Regulation Number 7 Year 1999, such as Root Tiger (Felis temmincki) and black eagle (Ictinaetus malayensis), area that provide environmental services (riparian) and area that functioned as the natural divider (Swamp Forest). HCV Identification has been involved stakeholders such as local government, surround people, employees, contractors etc on the preparation. There were several management actions conducted by the company, such as: 1. Socialization to the worker, staff, and community in surrounding

a. Socialization to the worker, and staff on 28 Septemberat the Main Office of Palapa Estate, attended by 13 participants. The purposes were; - Recognition to the worker concerning the important meaning of protection to endangered species. - Reaffirmation concerning prohibition of hunting to wildlife endangered species. - The management of company suggested to the community and workers to participate in endangered wildlife

conservation efforts. b. Socialization to the community through public consultation activity conducted at the Office of Garud Village, Kandis

Sub District, Siak Regency on 23 September 2009 and attended by 22 participants. 2. The making of prohibition signs for animal protection such as a warning sign installation about hunting prohibition, fish

poisoning prohibition, etc. 3. To install the marker for HCV border area, such as installation of prohibition sign on the use of chemical material in the

riparian area, to set stakes in 50 meter from the river mouth, etc. The companyhas pointed a trained HCV Officer for the management of HCV. The record of material is available and well stored by the company.


ASSESSMENT REPORT



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

The company has SOP Waste Management (SOP/SPO/SMART/LH-09, 1 July 2010) which describe about the identification of waste source and its management. Based on the procedure, the company has managed Hazardous and Toxic Waste in accordance with the permit, land application for liquid waste from POM, empty fruit bunch was applied to the plantation area, smoke and dust was periodically monitored, used metal was sold to the used metal collector, domestic waste was disposed at the Temporary Waste Disposal Site at each division and infectious waste was managed together with the Local Hospital– Bangkinang. The company has implemented Waste Management in accordance with the procedure and records it such as solid waste in the form of shell and fiber as boiler fuel. at Samsam Mill, the use is March 2013 was 846.58 Ton shell and 1,840.36 ton fiber. The management of Hazardous and Toxic Waste is explained in the SOP of Hazardous and Toxic Waste Management (Number of document: SOP/SPO/SMART/LH-18) Revision 1 on 01 October 2011. Hazardous and Toxic Waste produced from the estate and mill was temporary stored at the licensed Temporary Waste Disposal Site of Hazardous and Toxic Waste. For the final collector ofHazardous Material, the company has cooperated with PT Binasamsurya Mandalaputra that has been permitted by the government of Indonesia in accordance with the Decree of Environmental MinisterNumber B-8016/MENLH/10/2008. Verification on June 8th 2013 All Hazardous Material Waste produced by the company has been documented in the Balance of Hazardous Materialand routenely reported (every three months) to the government. CAR Number 2013.01 with minor category is Closed. Based on the field survey to the Temporary Waste Disposal Site at Samsam Estate, Palapa Estate and Samsam Mill waste waste has been placed in area in accordance with the valid regulation. Waste Management of used pesticide packaging was conducted by washing it in special area. The water from this washing was then reused for the next pesticide mixing process and washed packaging container can be stored at specific warehouse to be then delivered to supplier. Based on the field surveyat Samsam POM’s scrap metal collecting wareshouse, scrap metalwas not placed in its placed so it potentially polluted the environment and it did not follow the requirement. Nonconformities please see CAR 2013.04 with Mayor category. Verification on June 8th 2013 Sam Sam POM has identified the cause of this and the company has conducted several improvement, such as:

Based on the identification, scrap metal waste was started to be placed on 4 June 2013 and at the time of field survey in the noon on 4 June 2013, it was directly moved to the determined area.

The company has dredged soil in area where scrap metal was placed and then dredged soil was used as the additional in waste pond embankment.

The company has program for cementing area around metal warehouse to avoid metal waste direct contamination to the soil in the future..

Nonconformities CAR 2013.04 with Mayor category is Closed.

Major 5.3.2 Minor 5.3.1

Status: Closed

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

The company (Sam Sam POM) has conducted several efforts for the efficiency of energy use by converting renewable energy use such as the use of fiber and shell as the fuel to replace diesel in order to operate boiler.

No. Description Unit 2011 2012 2013

1. FFB Kg 283.916.660 275.500.160 71.143.100

2. TOTAL FIBER&SHELL Kg 51.814.790 50.278.779 12.983.616

3. KALORI KKal 247.610.817.103 240.270.577.040 62.045.676.088


ASSESSMENT REPORT


4. POWER Kw 14.804.832 14.365.954 3.709.756

5. PENGHEMATAN Rp 7.660.193.698 9.423.016.560 2.003.062.280

6. KONVERSI Rp/Kg FFB 26.980 34.200 28.160

There is a saving on the use of diesel because of high use of fiber and shell. Based on the above analysis, there was an increasing of energy efficiency every year. In 2011, the company has saved Rp. 26,980,000/ton FFBand keep increasing in 2012 as much asRp. 34,200,000/ton FFB. Until April 2013, the company has saved the use of fuel as many as Rp. 28,160,000/ton FFB.


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

The company does not use fire for land clearing. However, it is conducted in accordance with the SOP of Land Clearing (SMA/MCAR/05/05-07, revision 02) approved on 18 April 2007. Land clearing phase is conducted by making spatial planning, blocking path, road construction, land clearing(imas/cuttingsmalllogs diameter < 15 cm, uprooted, mechanical stacking, stack of wood path, implementation of mechanical stacking, chopping block, etc.). Based on the field survey at Block K13, Division 5, SSME, replanting activity was not conducted by buring but falling and chopping. The company also conducts a socialization to prohibit waste burning through warning sign in the housing area of workers. Based on the field survey and interview, workers and their families have known about the prohibition of waste burning. While for zero burn monitoring, the company have made team of fire prevent patrol in each estate. The procedure of prevention and handling of fire is described in the SOP of Emergency Response (SOP/SMK3/SMART/LH-09, on 1 July 2010) and SOP of Land Fire Handling (SOP/NP/SMART/XI/L-H002 on 1 July 2010). Each management unit (estate and mill) has trained fire extinguisher team. There is a record of land and housing fire emergency response simulation on 6 September 2012 at Pondok 6 SSME. This simulation was conducted by the representative of fire extinguisher officers from all estates and mills in PT IMT. Facilities and infrastructures for fire prevention/handling are available at each management unit (estate and mill). Owned facilities and infrastructures such as fire extinguisher, water tank, water machine, hose, and nozzle. The company has routinely checked facilities and infrastructures to prevent fire (one in a month). Based on the result of simulation to facilities and infrastructure for fire prevention/handling at Ujung Tanjung Estate, all equipments were well functioned.


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

To decrease pollution and emission, the company has identify the source of pollution and emission and their management actions as described in the SOP of Waste Management (SOP/SPO/SMART/LH-09, 1 July 2010) and SOP of mitigation to greenhouse gas emission (SOP/IMT/GRK, 5 April 2012). As the evidence in the implementation of pollution and emission management, the company has routinely monitored emission quality (every 6 months) such as Emission Test, Ambient Air Test, Noise, Light, and Vibration. The test was conducted by Occupational Health and Safety Agency in Medan. Based on the last test result (November 2012), there was noise level exceeded its quality standard. It was controlled by asking (obligation) workers to wear Personal Protective Equipment (ear plug/ear muff) at the working area. Meanwhile, other parameter met their required quality standards. The last test result for decibel level wich exceeded its quality standard shown on the table of below:

RESULT OF DECIBEL TEST FOR SSMM NOVEMBER 2012

Location NAB (dBA) Result (dBA) Management

St. Sterilizer 85 85.4 Wearing Personal Protective Equipment (ear plug/ear muff) at the working area and preventive maintenance for equipment.

St. Press 85 88.3 Wearing Personal Protective Equipment (ear


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plug/ear muff) at the working area and preventive maintenance for equipment

The example of monitoring smoke emission for boiler:

Result of monitoring Smoke Emission at Samsam Mill on Nov 2012

Parameter Regulation of the Minister of the Environment No.7 of 2007

Unit Samsam Mill

Boiler 1 Boiler 2

Smoke density 30 % 24.84 25.96

Total Particulate 300 mg/Nm3 198.72 210.52

To prevent spill of Hazardous Material Waste such as used oil, the company make second containment at Temporary Waste Disposal Site. Beside that, the company also make second containment at fueling areas. The company has conducted several efforts to decrease pollution and emission such as routine checking and maintenance of working equipment, to use solid waste (shells and fibers) as the fuel of boiler and to use liquid waste in land. Before being used, liquid waste was previously managed at 8 ponds (6 active ponds) by using multi feeding system. In addition, routine checking to liquid waste quality (every month) was also conducted to avoid pollution in soil. The record of liquid waste quality test result and record of waste use have been well stored. The newest result of waste quality test (March 2013) was BOD: 1.402 mg/l (BM: 5.000 mg/l) and pH: 7,75 (BM: 6-9).


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

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.

The company has identify social impacts as described in: a. Environmental Evaluation Study (SEL) that has been approved by the Commission of Environmental Impact

Assessment (EIA), Agricultural Department through Approval Letter Number RC.220/1052/B/VI/93 on 22 June 1993, Environmental Management Plan (RKL) of Palm Oil Estate and Palm Oil Processing of PT Ivomas Tunggal that have been approved by the Commission of Environmental Impact Assessment (EIA), Agricultural Department through Letter Number 129/RKL-RPL/BA/XII/94 on 08 December 1994, Environmental Monitoring Plan (RPL) ofPalm Oil Estate and Palm Oil Processing of PT Ivomas Tunggal that have been approved by the Commission of Environmental Impact Assessment (EIA), Agricultural Department through Letter Number 129/RKL-RPL/BA/XII/94 on 08 December 1994 and revision of Environmental Management Plan - Environmental Monitoring Plan (RKL - RPL) according to the Recommendation of Environmental Management Plan - Environmental Monitoring Plan (RKL - RPL)Revision from Environmental Impacts Management Agency (Bapedal) of Riau Province Number 660.1/Bapedal Prop.AM/232 on 3 May 2006 and its coverage area is 2 Land Use Title for 25,053.287 ha and 3 Palm Oil Processing Mill, respectively has the capacity of 60 Ton FFB/Hour.

b. Report of Social Impact Identification Study of Palm Oil Estate of PT Ivomas Tunggal by internal staffs (Untung Sukaedi and Tomi Hendartomo) in August 2012 by using participative method by involving stakeholders such as community figures, youth leaders, and village heads in order to decrease negative impact and to increase position impact in the community. The result of this social impact study describe about derived impacts, action plan proposal, and target to be achieved. There are several negative impacts such as lack of local worker recruitment and less optimal community economic development. Meanwhile, positive impact is active participation in education quality increasing in Kandis Sub District and regulation of Sakai Ethnic community.

The company routinely compose Implementation Report of Environmental Management Plan - Environmental Monitoring Plan (RKL - RPL)report it every semester for example; Implementation Report of Environmental Management Plan - Environmental Monitoring Plan (RKL - RPL)Second Semester of 2012 reported to Environmental Agency of (Environmental Agency) Siak Regency and received by Environmental Agency (Ms. Tanti) on 10 April 2013. Related institution explain that there was no


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complaint about the environmental pollution caused by the company both liquid waste and solid waste. Liquid waste from the company is flowed as land application. Environmental Management Plan - Environmental Monitoring Plan (RKL - RPL) were also submitted to the Center of Sumatera Eco region Management, the Environmental Ministry of the Republic of Indonesia. It had been received by Ms. Yeni (the secretary of the Head of Cultivation and Preservation of the Environment of Sumatera Region) on 22 May 2013 and the Head of Deputy Assistant of Agroindustry Pollution Control, the Ministry of Environment, received by Mr. Wahyu (Staff of Deputy Assistant) on 4 April 2013. The result of FGD on 5 June 2013 attended by stakeholders showed that there was no complaint about the environmental pollution related with the social impact management by the company. There is a periodic record of social impact management and monitoring in the document of Implementation Report of Company Social Impact Management,Siak Regency Period December 2011 to December 2012 published by the Department of Corporate Social Responsibility. Negative impact management was conducted by recruiting local worker to work at the company and scholarship for excellent student and recruited as an assistant at the company. In order to increase community economic, PT Ivomas Tunggal the company has trained blacksmith and coaching of tailor. In the operational of company, there was no big change of area or capacity of palm oil mill. PT Ivomas Tunggal-Sam Sam POMdoes not have scheme smallholders. Allprocessed FFBwere obtained from own estate (nucleus).


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.

There is a SOP of Response to Information Order (SOP/SOP/SMART/LH-01, approved on 1 July 2010), its scoping area is activity related with information order to the stakeholder at Palm Oil Estate and its management. The purpose is to provide right and transparant information to the stakeholder in accordance with the regulation, rules, and decree related with the principle and criteria of sustainable palm oil. There is also SOP of Communication and Consultation (SOP/SPO/SMART/LH-19) on 1 July 2010 by Division of Head Environment & Sustainability. It regulates about the determination of activity, type of activity, description of activity, implementation of activity, and related document. All written communications are recorded in the document of Communication and Consultation Book. There is a document of Communication Book for Samsam Estate, Palapa Estate andSamsam POM, such as at Samsam Estate on January-March 2013, there was 9 communication orders and all of them have been responded according to the requests. There was a document of List of Personal Contact and Institutionsthat consist of Government Institution (16 institution) and community figures (12 people), and 1 NGO Sakai Kandis Lestari Survivor Group in Kandis. The company has recorded the communication with internal and external parties in communication book. Based on the study to the Communication Book of PT. Ivo Mas Tunggal, there are several records of communication and response by the company, as follow:

Samsam Estate : from January to April 2013, there are 8 aspirations from the community (consist of 5 external aspirationsand 3 internal aspirations). Fox example, last external aspiration was delivered on 2 March 2013 from the Head ofBelakar Village, for heavy equipment/grade order to flatten school’s site and it has been responded on 2 March 2013. Meanwhile, internal aspiration was delivered on 26 March 2013 fromYesmen Hulu(Christian Association Group) in the form of transportation order on 29 March 2013, and it has been responded on 26 March 2012 in accordance with the order from the EM Samsam.

Palapa Estate: fromJanuaryto April 2013, there were 9 aspirations (consist of 6 external aspirations, thelast external aspiration was delivered on11 March 2013 from the Head of Sectoral Police) in the form of transportation order for palm seedlings and it has been responded on 11 March 2013); internal aspirations consist of 3 pages, the last internal aspiration was delivered on 16 February 2013 from Nurul Iman Mosque Youth Association, Pondok 2 Palap, in the form of transportation assistanship order for grand wird at Kandis, and it has been responded on 16 February 2013.

Based on the result of FGD (Focus Group Discussion) to thestakeholders on5 June 2013 at Ujung Tanjung Training Center,


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stakeholders have known the procedures of communication and information order or assitanship order to the company.Personal who responsible to conduct consultation and communication with the community at each estate is Manager of Estate. The manager able to delegate this task to his staff below him. This is in accordance with the job description of company’s manager.


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

The company has a procedure of workers’ complaint delivery with the name of: SOP of Complaint and Unsatisfaction Management (number of document: SOP/NP/SMART/XII/MCAR001 on 1 July 2010) concerning internal and external complaint management. For internal complaint, solving of complain and unsatisfaction from the worker must be delivered to the supervisor of working unit – Workers Union (PUK-SP) by making a letter to the head of unit. For external complaint, phase is described below: unit receives written or oral complaint and then verified at the field by related head unit and staff of department. If the complaint is true, related unit report it and ask for suggestion and consideration from the sub division of head before response it. Response is addressed within a month to the external party, if it is not satisfied, deliberation process will be conducted with third party. Special complaint related with female worker has been facilitated by establishing female worker association. In addition, the company has also provided 3 mail boxes at SSME (1 in the head quarter, 1 in the division office of pondok 1,1 in the division office of pondok 6 and3 boxes at the PLPE (1 box at each main office, office of division pondok 2, and office of division pondok 1). The company has also provided complain book and also its response. Based on this book until April 2013, therewas no complaint from the external party and complaint from the management with the Indonesian Workers Unionrelated with the worker’s complaint. There is a mechanism of dispute problem solving:

SOP of Land Conflict Solving, number of document is SOP/SPO/SMART/LH-04. its coverage area is all activities related with land conflict solving activity around the plantation area and its management unit.

SOP of Conflict and Unsatisfaction Handling, number of document is SOP/NP/SMART/XII/MCA/2011, valid from 1 August 2010.

Implementation of this SOP was realized in the form of Complaint Book at each estate. It was intended to record and monitor complaint from parties that potentially become the source of conflict. Based on the consultation result with stakeholders on 5 June 2013 there was no land conflict between the company and community in surrounding.


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.

The company has mechanism for dispute problem solving, such as:

SOP of Land Conflict Solving, number of document is SOP/SPO/SMART/LH-04. its coverage area is all activities related with land conflict solving activity around the plantation area and its management unit.

SOP of Conflict and Unsatisfaction Handling, number of document is SOP/NP/SMART/XII/MCA/2011, valid from 1 August 2010.

There is a record of land right acquisition that has been documented in the Document of Legal and Land Acquisition, consist of: 1. Statement Letter of Land Owner. 2. Statement Letter of Land Right Acquisition known by village head and representative of sub district. 3. Receipt of land/crop compensation payment. 4. Minutes of meeting of land/crop compensation paymentknown by representative of sub district, village head, traditional

leaders, Islamic leaders, community figures, and smart people. 5. Map of compensated land. The company also has record of project site compensation payment of Kandista Estate in 1992 to the community in Belutu Village as many as ± 200 family heads represented by the village head. The amount of compensation was Rp. 26,000,000 on 11 March 1992 completed with;


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1. Minutes of meeting project site compensation payment of Kandista Estate which received by the Village Head of Belutu Village (Mr. Abdul Mansur) and witnessed by the Secretary of Belutu Village (M. Yunus), traditional leader of Belutu Village (Linggin), Islamic leaders in Belutu Village (Hamzah Kesud), community figure of Belutu Village (H. Anang), professional/smart people of Belutu Village (Khoba Khoiri), Head of Minas Sub District (Drs. Wan Achmad Syaiful), Head of Governance Affairs (Amrul Amp)

2. Map of Kandista Estate Project Site that will be paid has scale 1: 40.known by the village head of Belutu Village and management of PT Ivomas Tunggal.

3. Receipt of compensation payment as much as Rp. 26,000,000 received by the village head of Belutu Village (Mr. Abdul Mansur) on March 11th 1992.

The implementation of this SOP is realized by providing Complaint Book at each estate. It is intended to record and monitor complaints from many parties that potentially become source of conflict. Based on the consultation result with stakeholder of PT. Ivomas Tunggal on June 5th 2013, , there was no land conflict between the company and community in surrounding


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.

The company has showed following documents that used as the base for the determination of worker’s wage: 1. Document of Regulation of Riau Governor No 67 Year 2012 concerning Minimum Waste in 12 Regencies of Riau

Province in 2013, there is an appendix that stated minimum wage for Siak Regency is Rp 1,600,000,- 2. Document of Decree of monthly SKU worker’s wage determination by the company in 2013 which based on the

worker’s group, the lowest wage is Rp. 1,566,350,- 3. Document of Decree of monthly SKU H worker’s wage determination number 066/CEO5/HR PSM 5/04/13 as much as

Rp 1,511,500,- 4. Document of Decree of monthly BHL worker’s wage determination number 065/CEO5/HR PSM 5/04/13 as much as

Rp 65,040,- The company also showed list of worker’s wage payment, for example list of worker’s wage paymentin April 2013 at SKU andBHL Palapa Estate period May 2013. The company also showed Collective Labor Agreement in 2012 that there was no application; number of Decree is 191/PHIJSK-PKKAD/PKB/XII/2012, published by the Directorate General of Industrial Relation Guiding and Worker Social Security on 17 December 2012, valid within 14 Nov 2012 - 13 Nov 2014. The company showed List of facilities/infrastructure for worker’s prosperity such as housing/residential area, central polyclinic, mosque, church, schools (elementary school, Junior high school, preschool, kindergarten, and Islamic elementary school), sport hall, school bus, ambulance, worker hall, day care, and clean water facilities. The company require contractor to comply valid manpower regulations as stipulated in the Collective Labor Agreement between the contractor and company such as Collective Labor Agreement Number 002/PLPE/02/2012/KBN-Chipping replanting area at Palapa Estate with the contractor on behalf of William written in the section 6 (working facilities) Sub section 9: concerning occupational safety and compliance of Personal Protective Equipment, Section 4 sub section 7 concerning provision of Labor Social Assurance for contractor’s worker.


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.

The company showed a document of policy to be free to join organization/union through Letter of CEO 5 Number 045/CEO5-SE/11/2010 concerning alliance deliberacy in workers/labors organization on 16 November 2010. There is a document of Collective Labour Agreement between Cooperation Agency of Sumatera Plantation Company (BKS-PPS) with the Central Management of Agricultural and Plantation Worker Union – Indonesian Workers Union (PP FSPPP-SPSI) in 2010 – 2012. It was published in Jakarta by the Directorate General of Working Requirement, Working Prosperity,


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and Discrimination Analysis on 4 August 2010. In Section II, Organization Confession: sub section 1 concerning Employer Confession and Workers Union at point a,b,c,d,e,; sub section 2 concerning General Sags for the Management of FSP. PP-SPSI at point a,b,c; sub section 3 concerning Special Sags for PUK SP-SPSI point a and b ; andsub section 4 concerning Implementation of contribution quotation of the member of FSP.PP.SPSI.. Routine meeting of Workers Union was documented. The company showed a sample of meeting invitation of “Continuation of UMSP Meeting 2013” number 163/PC/F-SPPP SPSI/Siak/03/2013 to PUK F.SPPP SPSI in PT Ivomas Tunggal Siak andPT Minamas Plantation, on 4 March 2013 and deliberation meeting was conducted on 6 March 2013.


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.

The company showed a policy not to employ under age workers according to the Letter on 31 March 2009; concerning border of minimum age with the number of letter is 002/SE-HRDV/03/09 from the HR Director. This letter is subjected to SMD Operations, DMD Agronomy etc that states: related with the implementation of Law Number 13 year 2003 concerning Matters pertaining to manpower section 68 about prohibition to employ kids, it is stated that during worker recruitment process, the minimum age is 18 years old (by Michael Adryanto). In addition, in Chapter II. Working Relation section 5 sub section 2 also state that worker candidate must be 18 years old for the minimum. The company also showed the list of workers in 2013. Based on the data study, the company did not recruit workers below 18 years old. The youngest worker isSyamsudin (security officers) born on 23 Nov 1993.Based on the field survey and interview with the workers, there was no worker below 18 years old.


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.

The company showed the Policy/SOP concerning similar opportunity and treatment in worker recruitment (Policy of Non Discrimination in SARA/Ethnic – Religion –- Racial - Intergroup) as written in the Chapter II, Working Relation section 5: Procurement and placement of worker sub section 1 that state each worker candidate should be given with similar opportunity to get job with no differentiation/discrimination. There is also a Letter from CEO 5 concerning the Implementation of Industrial Relation at the Unit, the number is 003/CEO5-SE/06/2009, on 24 June 2009, to all unit heads, in order to realize harmonious, dynamic, and fear industrial relationship, each operational working unit should not differentiate ethnic, religion, racial, and sex in all working units. PT Ivomas Tunggal (Samsam Mill, Samsam Estate and Palapa Estate) showed a List of workers in 2013. The detail of employee of SAMSAM ESTATE in 2013 are 355 people, the number of staffs at Palapa Estate in 2013: 381 people andwage of SAMSAM POMin 2013 is 144 people. Based on the study of manpower document at each estate, in the list of this curriculum vitae list, there was information describe that workers come from many ethnics. Based on the field survey and interview with workers, the company does not discriminize labor during labor recruitment.


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.

PT Ivomas Tunggal showed policies and SOPs concerning prevention to sexual harassment and criminality as well as reproductive rights protection, such as:

1. SOP Gender Committee Number of Document is SOP/SPO/SMART/LH-15 valid from 1 July 2010 2. Document of Letter from CEO 5 number 001/CEO5-SE/02/2009 concerning socialization of sexual harassment valid

from on 20 February 2009 that all workers and staffs are forbidden in sexual harassment and this prohibition must be socialized

3. Memorandum VPA PSM 5 Number 001/SE/VPA5/12/08 concerning prohibition for pregnant woman and breastfeeding mom to work as spraying personal


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4. Document of Letter of CEO 5 number 002/CEO5-SE/03/2009 concerning granting for period permit valid from on 2 March 2009

There is a record of the implementation of company’s policy concerning sexual harassment prevention and reproduction rights protection such as the formation of gender committee structure and socialization of sexual harassment prohibition and reproduction rights protection. The company also showed recapitulation report of H1 leave (paid leave due to period/menstruation) and H2 (paid leave due to maternity) The company showed Letter from CEO 5 number 001/CEO5-SE/02/2009 on 20 February 2009 that regulates prevention and handling of sexual harassment. There is flow chart of sexual harassment problem handling at PT IVOMAS TUNGGAL, as follow:

1. The victim reports the complaint to the management board of Indonesian Female Workers Unionorally or in writing. 2. The management board of Indonesian Female Workers Unionreport it to the head of unit. 3. Head of unit check the report and accompanied by the board of PIRSI. 4. The board of unit decides whether sanction can be punished or not. 5. If the victim does not accept the decision or sanction given by the head of unit, victim can solve it through legal way

and the company is not involved. There is a list of attendance of socialization participant on this sexual harassment atPT IVOMAS TUNGGAL on 27 August 2009. The number of participant was 45.


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

Samsam POM does not receive fruit from outside party. The company paid in accordance with the time that has been agreed. There was a document of Collective Labor Agreement with the contractor signed by two parties (representative of company and contractor), for example Collective Labor Agreement.at Samsam Estate with the contractor on behalf ofIdawati (CV Bandara Samudra Abadi) Number ofCollective Labor Agreement is SSME/JKTO/03/13/018-Road paving, there was signs from two parties as the statement of collective agreement. There is also a sample of contractor job payment such as minutes of meeting of job checking by CV Karya Anugrah Perdana on16 April and payment on 16 April 2013 for SPK Number PLPE/JKTO/01/12/017 for transportation/retail of sandstone.


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

The company showed PT Ivomas Tunggal’s CSR strategic plan in 2013-2017 for all units. The proposal of CSR program in 2013 contains: Scholarship for poor excellent student, Program of 5km is freecataracts, hernia andcleft lip, Demonstrationof plots, assisstanceof livestock as many as100 cows, free interest loans for small traders, built8meterbridge, provision of automatic light bulb for the roads, making of brojong road, making of vehicles parking area, making of drilling well, mosque development, and waqf land acquisition. The company showed a report about the realization of CSR plan that has been made, such asSocial work for the provision of glasses in Siak Timur. Total was 536 people for all units of Siak on 17 January 2013 from Budha tzu Chi Indonesia Foundation (representative of Sinar Mas). There is a list of participant in this social work for the provision of glasses and documentation of implementation activity (pictures)


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.

The company does not have new plantation development. Currently, replanting activity was conducted. Replanting activity has been described in the EIA study and Social Impact Study (please see criteria of 5.1).



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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 were nonew developments planting inthe company area. Now, only replanting activity. The semi detail study is available (please see criteria 4.3) and replanting area has been described in this document.


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.

The companyhas identifiedHCV, made HCVmanagementplanandimplementHCVprograms(See criteria5.2) and until the implementation of audit, PT IMT only conducts replanting activity. .


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

There were nonew developments planting inthe company area. Now, only replanting activityand replanting area is included in semi detail study (please see criteria 4.3). In semi detail study, there is a map that describe about class of slopw and land suitability. Planting in certain area refer to the procedure (please see criteria 4.3)


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.

There were nonew developments planting inthe company area. Now, only replanting activityand replanting area has been cleared (please see criteria 2.2).


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.

There were nonew developments planting inthe company area. Now, only replanting activityand replanting area has been cleared (please see criteria 2.2).


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.

There were nonew developments planting inthe company area. Now, only replanting activity. Replanting activity was not conducted by burning(please see criteria 5.5)


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.

PT Ivo Mas Tunggal as part of SMART, Tbk group has a SMARTRI research institute that work on the research and development of sustainable production technique. This SMARTRI consist of Plant Breeding Department; Agronomy Department; Crop Protection Department; Sustainability Department; and Field Operation & Training Department. Several research results by SMARTRI have been socialized and applied in the field, such as: 1. The application of S4 spraying technique (Selective Spraying Site Specific): Special for spraying in circle and harvesting

path, it is sprayed by using budget 25% of total area. S4 spraying technique can be used if the weeds in circle are above 20%. The implementation of this S4 spraying technique can be proved by the decreasing of herbicide, for example at Division 5, Kandistasari Estate: the use of herbicide Roll Up for budget rotation 1, in 2012, total application was 504.39 ha as many as 126.098 liter into 120.4 liter. There was a saving on the use of Roll Up herbicide as many as 5.697 liters


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2. The research on mother palm seedling at Palapa Estate Block F6-F8 and G8. Increasing of Sustainable Business on Social Aspect in the form of of the Social Aspects blacksmith (making harvesting tools, for example Egrek, ax &gancu) that formerly managed by individuals and still in limited production scale.Now the blacksmith has been compiled in a work shop at the Palapa Estate with larger production volumes. In 2013, the company had planned to build a bio-gas plant at Block E13 in Division 7 LIBE area of 3.2 hectares to meet the electrical energy needs of POM and KCP and it is expected to start its operation by the end of 2014. The project is a pilot project for another location. Based on the feasibility study, a bio-gas plant is expected can save: 1. Water and boiler chemical material saving: Rp.191.423.232 2. Maintenance cond turbine cost: Rp.148.670.650. 3. Cost for 4 people as man power: Rp.188.838.084. 4. Cost for generator diesel: Rp.3.188.192.017. 5. Non routine repairmen cost of boiler: Rp.399.364.211. 6. Cost of O/H Diesel for generator: Rp.235.900.913. 7. Unprocessed kernel cost: Rp.2.512.420.177. 8. Cost of shells that can be saved: Rp.9.572.561.714. PT Ivomas Tunggal as part of Sinar Mas plantation has improvement program in technical through innovation competition for assistant every 2 years and innovation competition for manager every 4 years. Below is the sample of inovation: 1. Wheelbarrows bearing change with bearing from bike ace. 2. The change of owl nest frame made of wood to owl nest frame made of iron. 3. The increasing of efficiency and effectivity of herbicide spraying by using tricycle motor as the vehicle for spraying activity. 4. The making of SECO for sickle safety from Samsam Estate to replace the use of sickle safety Kingoya brand. 5. The use of Scissor Lift in FFB loading activity, a mechanical arm set in the trailer with capasity of 2 tons. The company has internal audit team RSPO and there is a report of RSPO Internal Audit Report on 25 February - 2 March 2013 conducted by internal team of RSPO SMART (5 Auditors) for all estates (Palapa, Samsam, Kandista, Nenggala, Libo, Sungai Rokan, Ujung Tanjung, Libo Mill, Ujung Tanjung Mill, Samsam Mill), and the number of finding is 15. These findings have been followed up by the estate and POM as stated in the. Document of Corrective Action and Management Review of RSPO Internal Audit Report PT. Ivomas Tunggal on 13 April 2013. For example:

Finding at LIBE, SSME, KNDE, and UTJM concerning: a record of information order and response that have not been updated; follow up: has been completed with note in accordance with the current month; conducted every end of month through update record book.

Finding of indicator 1.2 & 6.2 at SRKE, SSME, NGLE, KNDE, UTJM, LIBM, and SSMM concerning: unavailability of socialization evidence of SOP Communication and Consultation; improvement action: socialization of SOP Communication and Consultation;target date 9 March 2012. Verification of improvement action in the form of invitation letter on 7 January 2013 (Number 02/LIBE-/01/2013) about socialization of SOP Communication and Consultation to the community in Libo Jaya Village, conducted on 8 January 2013; there is also a list of attendance in this socialization on 8 January 2013 at the Main Office of Libo Estate attended by 22 participants of community in Libo Jaya Village, staff of Libo Estate. The material of socialization was communication process flow. There is a socialization documentation of SOP of Communication and Consultation for SRKE on 22 March 2013 in the house of community figure and it was attended by 3 staffs and 4 community figures.

Finding of indicator 4.8 at KNDE, PLPE, SRKE, LIBE concerning SPO socialization evidence to the contractor; action: have updating material of SPO that has not been presented to the contractor; target date was closed on 23 March 2013. Verification of improvement action in the form of invitation letter(Number 01/LIBE/SOS/III/2013) about socialization of SOPof Contractor Monitoring (Number of document SOP/SMK3/SMART/LH-26) on 4 January 2013 at the Office of Samsam Village. It has been conducted on 13 January 2013 and attended by staff of estate (SEM and assistant of field) and contractor of grass cutting.

Finding of indicator 4.7 at SSME and LIBE concerning: incomplete content of First Aid Emergency Box in accordance with the Regulation of Manpower Minister Number 15 year 2008; action: has completing 21 items of First Aid Emergency box; target date was closed on 23 March 2013. Verification of improvement action in the form of: checklist document of First Aid Emergency Box at LIBE that has been update every month such as in April 2013 at 12 locations were complete in accordance with the Regulation of Manpower Minister Number 15 year 2008. There is


ASSESSMENT REPORT


also similar document for SRKE in 8 locations and total First Aid Emergency boxes are 35 from January to April 2013.



ASSESSMENT REPORT


3.2 Summary of Assessment Report of Supply Chain

Clause (Module D) CPO Mills - Segregation 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.

There are procedures and instructions for application RSPO supply chain requirements, such as: a. SOP Identification and traceability. Number : PT IMT/SOP/01 b. Duties and responsibilities of personnel on application of supply chain requirements, namely:

- Weigh krani (weight Bridge Officer). - Ensure the scales and Weight bridge program was working properly before weight - Checking completeness all vehicle documents that will be weighed, including ensuring input vehicle

number equal with number of vehicles weighed - Ensure the vehicle has been in correct position, the vehicle has been turned off, and all the passengers

including the driver had got out of the vehicle - Separating and recording FFB / CPO claim certified documents product from FFB / CPO non-certified

product. documents

- Assistant - To supervise FFB received in accordance with standards and criteria. - To supervise the processing of FFB - To supervise analysis process of quality products.

- Head of Administration

- Recording and reporting the quantity and quality of products routinely - Supervising administration FFB received and delivery products - Supervising the essential equipments in Supply Chain in good condition, accurate, licensed and

maintained - Performing Mass Balance calculation based on the amount of product that can be claimed as a Certified

Product

Manager - Responsible for all Supply Chain process can well accomplished - Ensure the Mass Balance calculations have been done correctly in order to know the number of

Certified Product. - Provide information to the relevant parties related with the number of Certified Product.

Production Controller - Ensure and guarantee the product can be traced to the sources, delivery product is acceptable

according to quantity and quality.



ASSESSMENT REPORT


1.2

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

The Company's procedures for receiving and processing certified and non-certified FFBs, namely: a. SOP Identification and traceability. Number : PT IMT/SOP/01 b. Duties and responsibilities of personnel on the application of supply chain requirements, for example :

- Weigh krani (weight Bridge Officer). - Ensure the scales and Weight bridge program was working properly before weight - Checking completeness all vehicle documents that will be weighed, including ensuring input vehicle

number equal with number of vehicles weighed - Ensure the vehicle has been in correct position, the vehicle has been turned off, and all the passengers

including the driver had got out of the vehicle - Separating and recording FFB / CPO claim certified documents product from FFB / CPO non-certified

product. documents


2 Purchasing and goods in

2.1

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

Company verify the volumes of certified and non-certified FFBs received in according to procedures traceability and Evaluation every monthly and quarterly.


2.2

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

Company have Mass Balance calculations and procedure if there is a projected overproduction, as follow : 1. Informing to RSPO Certification, CB and RSPO IT System. 2. Re-analyze production data and Mass Balance reports that have been made 3. Calibration and re-checking the weigh bridge and its supporting tools 4. Determine a new certified product projection and considering maximum error rate 5% of the total projection set.


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.

The company maintain accurate, complete, up-to-date and accessible records and reports covering all aspects of these

requirements, such as:

1. FFB delivery Ticket from core estates, smallholders estates and Supplier (individual farmers)

2. Weigh tickets from core estates, smallholders estates and Supplier (individual farmers)

3. weigh Tickets of Product (CPO and Kernel)

4. Product delivery Ticket (CPO and Kernel)

5. Daily Production Reports

6. SOP Acceptance

7. SOP Grading


ASSESSMENT REPORT


8. SOP Processing

9. SOP Process Control Manual

10. SOP Dispatch

All relevant documents are controlled by the controller unit document

If documents need appropriate changes (revisions), the controller will coordinate with representatives of

management and are approved by top management


3.2

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

Recording documents related to identification and traceability should keep at least in 5 years for RSPO in the factory office in accordance with procedures control documents and records.


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

palm kernel meal on a three-monthly basis. b. All volumes of palm oil and palm kernel oil shipped are reduced from the material accounting system in accordance

with the conversion ratio specified by the RSPO c. Facility can only send sales of Mass Balance from a positive stock. Facilities can sell lower

a. The Company has recorded and balance all receipts of RSPO certified FFB and non certified on monthly and three-

monthly basis that presented in the document of Mass balance calculation and was supported by computerized

Weight bridge Program.

b. All volumes of certified products have been calculated computerized by Weight bridge program.

c. Mass Balance sales from a positive stock was monitored by Weight bridge program.


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.

The Company does not sale certified product, but only delivery of products to Bulking (Storage after in Mill). Certified product acceptance documents are recorded in the Delivery Order that describe DO number, date of issue DO, product number, destination and transportation .


3.5 In cases where a mill to outsource activities to an independent palm kernel crusher, the crusher are still falls under the responsibility of the mill and does not have to be certified separately. The mill should ensure the crusher is covered through a signed and enforceable agreement.

Kernel product was produced by Ivomas Tunggal, sent to Kernel Crushing Plant in Libo (LIOK).


4 Penjualan dan pengeluaran material

4.1


ASSESSMENT REPORT


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)

(d) The quantity of the product delivered

(a) Reference to related transport documentation

The Company does not sale certified product, but only the delivery of products to Bulking (Storage after in POM). Certified product acceptance documents are recorded in the Goods Receipt Weigh Ticket that informed: a. Name of the recipient (Dumai Bulking Station) b. Date of weighing c. Delivered product name (CPO) and supply chain model that used (Mass Balance) d. The number of products shipped e. Documentation Delivery of Goods by with delivery letter


5 Training

5.1

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

There are training records related with Supply Chain Certification Systems conducted on March 2nd , 2013 by team ENVD -JKTO and attended by 32 participants. However, based on document observation, is known that the training conducted for staff estate and not attended by factories staff in Ivomas Single (Samsam, Libo and Ujung Tanjung), so there in nonconformity (Noncompliance CAR No 2013.02). Verified on Mei 8, 2013. Ivomas tunggal (Samsam POM, Libo POM and Ujung Tanjung POM) has conducted training of Supply Chain Certification Systems on May 8th , 2013 by Team ENVD-JKTO and attended by 42 staff that responsible with the implementation of RSPO Supply Chain (Mill Manager , Assistant, Head of Administration , krani weigh and other staff). Training records is available and well keep by the company. Understanding related to implementation of RSPO Supply Chain will verify in the next assessment. Based on the above statement CAR No 2013.02 is Closed.


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.

Ivomas Tunggal’s procedure have stated 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



ASSESSMENT REPORT


3.3. Conformity Checklist of Certificate and Logo Use (Only apply for Surveillance Assessment Report)

1. Bukti Persetujuan/ijin mengenai penggunaan Sertifikat dan logo dari lembaga sertifikasi

X or√

ST-2/S-1/S-2/S-3/S-4/RA

Status:

2. Implementasi/penerapan sertifikat dan logo oleh klien yang sesuai dengan bentuk dan ukuran seperti yang dijelaskan dalam pedoman penggunaan logo

X or√

ST-2/S-1/S-2/S-3/S-4/RA

Status:

3. Implementasi/penerapan sertifikat dan logo yang tidak digunakan pada produk

X or√

ST-2/S-1/S-2/S-3/S-4/RA

Status:

4. Pengendalian sertifikat dan logo oleh klien termasuk pengendalian/ penarikan Logo yang tidak sesuai

X or√

ST-2/S-1/S-2/S-3/S-4/RA

Status:


ASSESSMENT REPORT


3.4. Summary of RSPO Partial Certification

There are 5 management unit are included in Ivomas tunggal, Management units belonging to the Ivomas Tunggal are: 1. PT. Ivomas Tunggal 2. PT. Buana Wiralestari Mas 3. PT. Meganusa Intisawit 4. PT. Bumipalma Lestaripersada 5. PT. Sawitkarya Manunggal

Total company that used for sample are (0.5 √Y) where Y is the number of companies incorporated into the same holding. Location sample for assessment are: PT. BUMIPALMA LESTARI PERSADA. Verification Date: 14 May 2013

2.1

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

X or√

Companies comply with the law and regulations related to the environment and prevailing land tenure. No complaints from stakeholders to the company. Based on the results of verification on unit is an example of the assessment,there were no non-compliance with regulations. The company has evaluated the implementation of legal compliance every year. It is available the results ofan evaluation of regulatory compliance:

1. Occupational Health and Safety (173 rule, 9 Not Applicable and 100 % comply ) 2. Plantation licenses (51 rule, 9 Not Aplicable and 100 % comply) 3. Environment (59 rule, 2`1 Not Aplicable and 100 % comply) 4. Labor (100 rule, 2 Not Applicable and 100 % comply).

√


2.2

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

X or√

There is availabble documents of : - Location Permit and Permitof Exemption Rights / Purchase of Land in the Sub district

of Peteh, Emok and Keritang,Indragiri Hilir District for Palm Oil, Coconut Hybrid and cacao on Behalf PT Bumipalma Lestaripersada. were issued by the Regional Investment Agency-Pekanbaru through Riau Governor's Decree Number: KPTS.40/IL-X/1990, dated October 22, 1990. There are also Appendix Location Map, Area ± 8,200 Ha Scale 1: 100,000.

- Decree of the Minister of Forestry Number: 136/Kpts-II/92, dated November 10,1995 about Release of Some Forests area in Forests Group, Reteh-S, excavation, Indragiri Hilir District, Riau Province, Covering an area of 11,562.5 Hectares for palm oil Cultivation on Behalf of PT Bumipalma Lestaripersada.

- Land use title No. 01 covering area 6.690 Ha, certificate of regestry dated 30 March 1995 No 02/1995 and map (scale 1 : 25,000), based on decree of Agraria Ministry/ Head of National Land Agency. Number: 73/HGU/BPN/95/ dated 10 November 1995 were issued by Head of National Land Agency dated 20 April 1996. Location in Mumpa, Pusaran, Baganjaya, Sungai Rukam, Pengalihan, Pebenaan, Sungai Gergaji. Land use title is valid until 31 December 2030.

- Building permits of factory covering 3,645.5 m based on decree of Indragiri Hilir Regent Number : B-0/HK/1995, dated 30 November 1995.

√


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√

Company have SOP grievance and complain (SOP/NP/SMART/XII/MCAR001), Revised July 1, 2010, and have been socialized on 9 February 2013 and March06, 2013

√


ASSESSMENT REPORT


Status: Full compliance

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√

Company have SOP/NP/SMART/VII/D&L002 about Land Compensation, revised July 1, 2010 Some land restitution process has been done and recorded. The process of land acquisition was conducted thorugh mapping, land owners identifying, negotiations between land owner and involving community representatives for land compensation.

√


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√

There are no new planted in primary forest area since November 2005 or every areal which required for maintain or improve the one or more HCV).

√


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√

There are no new planted in primary forest area since November 2005 or every areal which required for maintain or improve the one or more HCV).

√


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 no development of new planting area at PT. BPLP Based on verification of documents statement area, Plantatatio map and information from managemen that until now has not been identified or there are no problems with the stakeholders area currently managed by PT Bumipalma Lestaripersada

√



ASSESSMENT REPORT

SPO – 4006a.5 Page 46 Dibuat oleh Mutuagung Lestari untuk Pabrik Samsam – PT Ivo Mas Tunggal

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 ST-1 Assessment

CAR No

Ref Std Finding Area Grade Time

Limits Corrective Action Observation Status

Closing Date

2013.

01

Minor

5.3.1

Reporting/Logbook of Hazardous Waste atEstate. There is not enough evidence record/ log book of hazardous waste Estateh as reported periodically (every 3 months) to the relevant agenciesin accordance with obligations in the decree permits of hazardous waste temporary warehouse and Government Regulation Number 18 year 1999 Clause 11 Paragraph 2.

Estate Potenti

al NC

Before

Stage 2

The company must show evidence of record/ logbook hazardous waste Estate has reported periodically to the relevant agencies.

June 8th, 2013 The company has reported regularly of log book hazardous waste to relevant agencies such as the delivery of a report to Environment Agency of Siak District and it received on May 1st , 2013.

Closed June 8th,

2013

2013.

02

SC.MB.

5.1

Training of Supply Chain. Not all staff associated with implementation supply chain certification system, have been trained such as krani weigh, assistant, head of administration.

POM Potential NC

Before Stage 2

The company must show evidence of training related to implementation of supply chain certification system requirements.

May 8th, 2013

Ivomas Tunggal (Samsam POM, Libo POM and UjungTanjung POM) has conducted awareness training of Supply Chain Certification system on May 8th,

2013 by Team ENVD-JKTO and attended by 42 staff associated with theim plementation of the RSPO Supply Chain number (Mill Manager, Assistant, Head of Administration krani weigh and other staff). Training records is available and

Closed May 8th, 2013


ASSESSMENT REPORT


CAR No

Ref Std Finding Area Grade Time


Closing Date

well keep by the company.

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

CAR No

Ref Std

Finding Area Grade Time


Closing Date

2013.

03

Minor

4.4.1

Implementation of Water Management Program The company has tested surface water quality regularly. However, according to the result of surface water for TSS parameter in March 2013, it exceeded its required quality standard. Based on the field survey at the housing area of Palapa Estate, water for bathing and washing of employee come from the lake. However, there is a former herbicide spraying in the area around the reservoir

Estate Minor S 1 The company should ensure that water management program has been implemented to maintain the quality and quantity of surface water.

June 13th, 2013 The company has identified TSS parameter increasing and surface water prevention and managementprograms. The resultof this TSS test in June 2013 showed that these parameters were below the required threshold. The company has identified the potency of reservoirswatercontaminationsources. The company has composed a program of prevention and management of this reservoir.

Closed June

13th,

2013

2013.

04

Major

5.3.2

Implementation of Waste Management Based on the results of field survey in the warehouse of scrap metal at Sam Sam POM, scrap of waste was put out of place.

PKS Major Before

report

submitted

The company should manage waste according to the required procedure.

June 13th, 2013 Sam Sam POMhas conducted several improvement efforts:

Move all used scrap metals to its place.

Plan of cementing in area around metal warehouse.

Closed June

13th,

2013


ASSESSMENT REPORT


3.5.3 Opportunity for Improvement

No Ref Std Descriptions

1 Major

2.1.1

Regulations Compliance

Calculation of wages proportionally (working time) of the Free DailyWorkershould be reviewedin accordancewithapplicable regulations.

2 Minor

4.4.1

Water Management Program

The Company shouldconsiderto testsurfacewater qualityat the pointbefore enter the estate.

3 Minor

4.6.1

Reducingthe use ofpesticidesofactiveParaquat.

Reductionof pesticideactive ingredientparaquatin order tofollow up.

4 Minor

4.7.6

First Aid Emergency Equipment

The Company should evaluate the completeness of first aidequipmentin accordance with emergency first aid manual.

5 Major

5.1.2

Minor

6.1.3

Reporting RKL and RPL(Environmental Management Plan and Environmental Monitoring Plan)

The Company should synchronize data between Environmental Management Plan and Environmental Monitoring Plan with SIA Report

3.5.4 Catatan Komponen Positif/ Noteworthy Positive Components

No Ref Std Descriptions

1 The company committed to apply the principles of sustainable palm oil (RSPO and ISPO).

2 Personal competence in their respective fields.

3 The provision of audit documents.

4 Implementation of Corporate Social Responsibility (CSR / Community Development) that has empowered some groups of people.


ASSESSMENT REPORT


3.6 Summary of Arising Issues from Public, Organization and Auditor Response

Public Issues (Institution/ NGO/Community)

Management Responses Auditor Responses

Dept. of Manpower and Transmigration – Siak District On behalf Mr. Izza CNT (Head of Work Norm): Company’s administration has submitted reports regularly to the Manpower and Transmigration agency – Siak District, such as: guiding committee of occupational safety & health report quarterly, wage reports, labour social assurance reports and routine report related with workers

Coordination with the Manpower and Transmigration Agency will be maintained and increased

The company can comply applicable regulations and obligations related to employment and acceptable to local communities and other parties.

Forestry and Plantation Agency - Siak District on Behalf Mr. Iyus Rizal (Secretary): The company has reported regularly related to the development of the plantation business to Forestry. Department . Plantation area is not a forest.

Coordination with Forestry and Plantation Agency y will be maintained and increased

The company can comply applicable regulations and obligations related to plantation operation and palm oil mill management

Mountaineering Club of Sakai Kandis Lestari Mr. Mawardi (Chairman):

Communication and information procedures have been socialized by the staff. It explained the stages and requirements of proposal submission.

Companies together with KPA Sakai Kandis have planting program in riparian and have socialized protected animals around company area.

There is no pollution in the river.

There is assistance glasses for Sakai citizens

There is a mass circumcision program that will be held on June 30th, 2013.

The company should pay more attention to the existence and

The company will maintain and coordinate with Mountaineering Club of Sakai Kandis Lestari regarding socialize of company programs and other social activities, including activities concern to surrounding community. Company will increase participation of local contractors in the procurement of materials, equipment, labor and other facilities.

Company should improve and evaluate environmental programs. PT Ivomas Tunggal have CSR Plan 2013 which arrange based on basic needs identification in communities around, includes education, health, social and local business development.


ASSESSMENT REPORT




conduct training programs to improve the competence of entrepreneurs / local contractors to improve the competitiveness to get the project in PT. Ivomas Tunggal, such as: gravel supply projects, housing construction, and others.

Police of Siak District On behalf of Mr. Suparno ( Head of Police Siak)

The relationship with the company is harmonious. The company constantly communicate and resolve problems that occur under applicable law.

There is no conflict of land and environmental pollution.

Company should assist operational patrol vehicle in the form of grants or leases vehicle.

The company will maintain and coordinate with police officers in order to create a conducive situation between the company and the surrounding community. The Company has already facilitated the vehicle and for a grant will be considered.

The company can improve communication and relationships with government officials.

Sakai tribal youth On behalf of : Mr. Joni Saputra (Youth leaders Sakai Kandis) In general, community support the existence of the company due to considerable economic impact to community. Most of Sakai people have low education, graduate from elementary school so it hard to get job or position it the company. Sakai tribal youth have proposed education scholarships for citizens of Sakai tribe in 2013 and still waiting follow up from the company.

The company has improved public education through the provision of eyeglasses, medical check up, scholarships (Diploma Smart, SMART Engineer), and currently consider about scholarships for elementary, middle and high school. Until now, there are 2 units smart houses in SRKE and SSME and has been used by the community around company.

Companies implemented CSR programs in accordance with the priority needs of local villagers. PT Ivomas Tunggal have CSR Plan 2013 which arrange based on basic needs identification in communities around, For example:

CSR program for Palapa Estate that includes education, health and social services as much Rp.61,060, 000.

Scholarship program for 9 Villagers of Simpang Belutu village as much Rp.12,600,000.


ASSESSMENT REPORT




Malay Customary Institution On behalf of Mr. Haji Hasan Basri (Chairman of the Malay Customary Institution ) Existence PT Ivomas Tunggal have developed Kandis region. Company has build Malay Customary Institution building. In particular, Malay Customary Institution expects that the company can participate in the effort to preserve and develop the Malay culture. In addition, community also expects the company have scholarship program for citizens in all levels education from elementary school until college.

The company has improved public education through the provision of eyeglasses, medical checkup, scholarships (Diploma Smart, SMART Engineer), and currently consider about scholarships for elementary, middle and high school. Until now, there are 2 units smart houses in SRKE and SSME and has been used by the community around company.


CSR program for Palapa Estate that includes

education, health and social services as much

Rp.61,060, 000.

Scholarship program for 9 Villagers of

Simpang Belutu village as much

Rp.12,600,000.

Local Contractor On behalf of Mr. Aldi (Workshop contractor)

He is contractors who get assistance and guidance from the company.

Mechanism from contract until payment both servces work and good supply can accept it.

process payment should be accelerated.

Companies have paid payments according to the agreement that refers to the stage of work.

The Company should evaluate the effectiveness of the mechanism of agreements with contractors.

Bekalar village On behalf of Mr. Ussay (Head of Bekalar Village / Community Leaders Sakai ) In general, relationship with company is going well. Company well

The company concern to improve of welfare

Companies implemented CSR programs in


ASSESSMENT REPORT




respond of requests such as borrowing heavy equipment for road repairs. There is a special program for 54 Sakai people in form of 10 kg of rice, 1 kg of sugar and 1 bottle of syrup every year since 2007. The company should have programof improvement or development appropriate housing for tribal Sakai people.

surrounding community.. Proposed of appropriate housing for Sakai people will consider. Currently the company has built 1 building of Sakai youth and economic building for Sakai community

accordance with the priority needs of local villagers. PT Ivomas Tunggal have CSR Plan 2013 which arrange based on basic needs identification in communities around, For example:



Rp.61,060, 000.



Rp.12,600,000.

Samsam Village On behalf of Mr. Panut ( village officer) Samsam villagers in KM.19 and Simpang Tales through the village officer expects the company can help construction / addition of classrooms for junior high school and build a high school. There is a livestock program from government , but community do not have the land to build cage so it cannot be realized. Community expect can be given 1 or 2 location for calf shed construction site.

In Samsam village, the Company has build 4 classrooms at SMK 01 Kandis. The company also have program of Etawa breeding for citizens around the company. For the pilot project, it was building stables for 100 Etawa located in Libo. Community proposal will be considered.




Rp.61,060, 000.



Rp.12,600,000.


ASSESSMENT REPORT




Sakai Village On behalf of Mr. Muhammad Anwar (Sakai community leaders) In general, relationship with company is going well. There is no environmental pollution and complaints. Sakai tribal people that total 54 families expect that the company can provide housing assistance, scholarship programs and more job opportunities, for example re planting work

The company concern to improve of welfare surrounding community.. Proposed of appropriate housing for Sakai people will consider. Currently the company has hired Sakai community, especially in the replanted areas with total 117 people.




Rp.61,060, 000.



Rp.12,600,000.

Region legislators Siak & Kandis Community Leaders on behalf of : Mr. Mester Hamzah Approximately 60% of the population Kandis are employees of PT. Ivomas Tunggal .

PT Ivomas Tunggal have better waste management than other companies.. There is no complaints from the public related to environmental pollution.

Workers facility (housing, etc.) also better than other companies.

There is no land conflicts.

There is no scholarships for top students in Kandis every level of education and outside the children of company employees. Though the company assessed the ability for it.

Waste management will be maintained so that no environmental pollution. The company's facilities will be maintained primarily for employee housing. The company is arrange scholarship program for local community from elementary school until collage for top students and less capable. The company conducted community empowerment without responsive elements such as empowerment


CSR program for Palapa Estate that includes education, health and social services as much Rp.61,060, 000.


ASSESSMENT REPORT




Community empowerment programs still responsive of requests from local communities and indigenous (Sakai tribal).

blacksmiths, tailors, local contractors, workers loading and unloading as well as programs of improve skills through smart home

Scholarship program for 9 Villagers of Simpang Belutu village as much Rp.12,600,000.


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 IVO MAS TUNGGAL Mutuagung Lestari

Management Representative Lead Auditor

Ismu Zulfikar M. Syarif Lambaga

Rabu, June 13th, 2013 Rabu, June 13th, 2013


ASSESSMENT REPORT


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

No Institution/Department Address Phone/Email Form of

Contact

Date of

Contact

1 Labour Agency, Siak District

(Izza CNT)

Komplek Perkantoran

Pemda Siak-Tanjung

Betung, Siak Sri Indrapura,

Siak District

- Consultation June 5th, 2013

2 Forestry and Plantation

Agency, Siak District (Iyus

Rizal)

Komplek Perkantoran

Pemda Siak-Tanjung

Betung, Siak Sri Indrapura,

Siak District


3 National Land Agency, Siak

District

Jl. Prona-Siak Indrapura,

Siak District


4 Environment Agency, Siak

District

Komplek Perkantoran

Pemda Siak, Tanjung

Agung, Siak District

- Consultation June 5, 2013

3 Nature Lovers Group, Sakai

Kandis Lestari (Bp. Mawardi)

Sub District of Kandis - Fokus Grup

Discussion

June 5, 2013

4 Kandis Sub district Police

Chief (Bp. Suparno)


Discussion

June 5, 2013

5 Youth Leader of Sakai Kandis

(Bp. Joni Saputra)


Discussion

June 5, 2013

6 Indigenous Institution of

Melayu, Kandis (Bp. H. Hasan

Basri)


Discussion

June 5, 2013

7 Workshop Ivomas Tunggal

Lestari (Bp. Aldi)


Discussion

June 5, 2013

8 Head of Bekalar Village (Bp.

Ussay)

Bekalar Village, Sub District

of Kandis

- Fokus Grup

Discussion

June 5, 2013

9 Village official of Samsam

village (Bp. Panut)

Samsam Village, Sub

District of Kandis

- Fokus Grup

Discussion

June 5, 2013

10 Community Leader of Sakai

(Muhamad Anwar)

Bekalar Village, Sub District

of Kandis

- Fokus Grup

DIscussion

June 5, 2013

11 Parliament Member Siak

District & Community Leader

of Kandis (Bp. Mester

Hamzah)


Discussion

June 5, 2013


ASSESSMENT REPORT


DATE TANGGAL

4 –7, 13 June 2013

PLANNED TIME

RENCANA WAKTU

ACTUAL DURATION

DURASI AKTUAL

PROCESSES / CLAUSES TO BE AUDITED PROSES / HAL YANG DIAUDIT

AUDITOR

Tuesday, 4 June 2013

06.00 - 08.00

08.30 - 11.30

11.30 – 12.00

14.00 - 17.30

Jakarta - Pekanbaru Pekanbaru – PT IVOMAS TUNGGAL Opening Meeting

Document Review of SAMSAM POM and Supply Base

(Samsam Estate & Kandista Estate)

Basic Information

Principle 1 (Information request & Response)

Principle 2 (Fulfilment of Regulation, Land Tenure, Community Agreement.)

Principle 3 (Company Working Plan and Replanting program)

Principle 4 (Operational records of Harvesting, Spraying, Upkeep, Fertilizer Application, IPM, Buffer Zones, Terracing, Stores, Workshop, etc)

SL / ARD / RR / SP / ON




Wednesday, 5 June 2013

08.00 - 12.00

14.00 – 17.30

Public Consultation

Public meeting (related community and villages) – IVOMAS

Related Govermnet Institution and NGO (SIAK) Document Review of SAMSAM POM and Supply Base (Samsam Estate & Kandista Estate)

Principle 5 (Environment report, HCV area)

Principle 6 (Worker Contracts, Payment & Conditions, External Stakeholders Communications, Labor welfare and facilities, local contributions)

Principle 7 (new planting or replanting implementation)

Principle 8 (Continuous Improvement)

SL / RR / ON

ARD / SP


Thursday, 6 June 2013

08.00 - 17.00

Collecting Audit Documentation and Preparation


Friday, 7 June 2013

08.00 - 12.00

Field Observation:

SAMSAM POM: WWTP (IPAL), Operational, K3 (OHS), Supply Chain

SAMSAM Estate: Harvesting, Upkeep (spraying, fertilizing, EFB application), Worker Facilities (Housing, clean water, et..), Operational boundary and utilization, Conservation area

SL / SP / ON

ARD / RR

Appendix 2. Assessment Programme


ASSESSMENT REPORT


DATE TANGGAL

4 –7, 13 June 2013

PLANNED TIME

RENCANA WAKTU

ACTUAL DURATION

DURASI AKTUAL

PROCESSES / CLAUSES TO BE AUDITED PROSES / HAL YANG DIAUDIT

AUDITOR

14.00 – 17.30

Field Observation:

KANDISTA Estate: Harvesting, Upkeep (spraying, fertilizing, EFB application), Worker Facilities (Housing, clean water, et..), Operational boundary and utilization, Conservation area


Friday, 13 June 2013

10.30 – 14.00

15.00 – 16.30

17.30 – 20.00

Audit Finding Conclusion Preparation Closing Meeting PT IVOMAS TUNGGAL - PEKANBARU



Saturday, 14 June 2013

08.00 – 10.30

12.00 – 14.00

Audit Report Preparation Pekanbaru - Jakarta



ASSESSMENT REPORT


Appendix 3. Glossary

EIA : Environmental Impact Analysis

APAR : Alat Pemadam Api Ringan (Fire Extingusher)

PPE : Personal Protective Equipment

B3 : Hazardous Waste

BOD : Biological oxyangen demand

BPN : National Land Agency

CD : Community development

CPO : Crude palm oil

CSR : Company Social Responsibility

FFA : Free Fatty Acid

HGU : Hak Guna Usaha

HIRAC : Hazardous Identification of Risk Analysis & Control

IPM : Integrated Pest Management

IPAL : Instalasi Pengolahan Air Limbah

IUP : Izin usaha perkebunan

Jamsostek : Jaminan Sosial Ketenagakerjaan

K3 : Kesehatan dan Keselamatan Kerja

KNDE : Kandistasari Estate

LC : Land Clearing

LSU : Leaf Sampling Unit

MN : Main Nursery

PN : Pre Nursery

P2K3 : Panitia Pembina Kesehatan dan Keselamatan Kerja

PLPE : Palapa Estate

PKS : Pabrik Kelapa Sawit

PN : Pre Nursery

POME : Palm Oil Mill Effluent

RKL : Rencana kelola lingkungan

RPL : Rencana pemantauan lingkungan

RTRWP : Rencana Tata Ruang Wilayah Provinsi

RTRWK : Rencana Tata Ruang Wilayah Kabupaten/Kota

SSU : Soil Sampling Unit

SSME : Samsam Estate

Documents

[ ]Stage-1 Stage-2 [ ] PT IVOMAS TUNGGAL. MUTUAGUNG LESTARI ASSESSMENT REPORT SPO – 4006a.5 i Prepared by Mutuagung Lestari for Samsam Mill – PT Ivo Mas Tunggal TABLE OF CONTENT