[ ]Stage2 - Roundtable on Sustainable Palm Oil : Subdistrict of Tualang and Kuto Gasib, District of Siak, Province of Riau Certificate Code : MUTU-RSPO/007 Date of certificate issue

PT. MUTUAGUNG

LESTARI

ASSESSMENT REPORT

Roundtable on Sustainable Palm Oil Certification

[ ]Stage 1 [ ]Stage2 [√]Surveillance-1

Plantation Management/Owner : MINAMAS Plantation - SIME DARBY Group

Plantation Name : PT Aneka Inti Persada – Teluk Siak POM

Location : Subdistrict of Tualang and Kuto Gasib, District of Siak, Province of Riau

Certificate Code : MUTU-RSPO/007

Date of certificate issue : 11 October 2011

Date of expiry of certificate : 11 October 2016

Assessment Assessment

Date

Report Finalization

Date

PT. Mutuagung Lestari Auditor

Checked by

Approved by

ST-2 18-23 October

2010 05 November

2010

Deni A. Novendi; Faruk Ahmad Nasir; Muardi Marwas;

Taufik Margani Tony

Arifiarachman

S-1 16-20 July 2012 27 September

2012

Octo H. P.N. Nainggolan; Marsudi Eko Santoso; Yudwi Wisnu Rahmanto

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

Submitted to RSPO on:

Approved by RSPO on:

Approved by Certification Body on:

1 October 2012

PT. MUTUAGUNG

LESTARI

ASSESSMENT REPORT

SPO – 4006a.4 i Prepared by Mutuagung Lestari for Aneka Inti Persada – Teluk Siak POM

TABLE OF CONTENT

FIGURE

Figure 1. Location Map of PT Aneka Inti Persada Figure 2. Operational Map of PT Aneka Inti Persada

1 2

1.0 SCOPE of the CERTIFICATION 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 7

2.2 Lead Assessor and Assessment Team 7

2.3 Assessment Methodology, Assessment Process and Locations of Assessment 8

2.4 Stakeholder Consultation and List of Stakeholders Contacted 9

2.5 Determine Next Visit 9

3.0 ASSESSMENT RESULT

3.1 3.2

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

10 27

3.3 Conformity Checklist of Certificate and Logo Use 30

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

31

3.5 Summary of Arising Issues from Public, Management and Auditor Responses 40

4.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Signing of Assessment Findings 41

APPENDICES

1. List of Stakeholders Contacted in the RSPO Certification Process 42

2. Assessment Program 43

3 Glossary 44

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.4 Page 1 Prepared by Mutuagung Lestari for Aneka Inti Persada – Teluk Siak POM

Figure 1. Location Map of PT.ANEKA INTI PERSADA

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT


Figure 2. Operational Map of PT.ANEKA INTI PERSADA

PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT


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 MINAMAS Plantation – SIME DARBY Group

1.2.2 Contact person Mohamad Pirabaharan

1.2.3 Company address The Plaza Lt. 36 Jl MH Thamrin Kav. 28-30 Jakarta 10350

1.2.4 Telephone +62-21-2992650

1.2.5 Fax +62-21-5711652

1.2.6 E-mail [email protected]

1.2.7 Web page address www.simedarby.com

1.2.8 Company status Private

1.2.9 Management Representative who completed the application for certification Mohamad Pirabaharan (Head of PSQM)

1.2.10 Registered as RSPO member 08 September 2004

1.3 Type of Assessment

1.3.1 Scope of Assessment Palm oil Mill and Estate

1.3.2 Type of certificate Single

1.3.3 Company names listed in the certificate PT.Aneka Inti Persada – Teluk Siak POM

1.3.4

Number of management unit

1 (one) mill (Teluk Siak POM) which received FFB supply from 3 (three) estates: Teluk Siak Estate (TSE), Pinang Sebatang Estate (PSE) and Aneka Persada Estate (APE).

1.4 Locations of Plantations, Mill and Area Statement

1.4.1 Location of estate

Name of Estate(s) Location

GPS

Latitude Longitude

Teluk Siak Estate Meredan village, Tualang Subdistrict, Siak District, Riau Province

00 35' 05" – 00 38' 09" N 1010 37' 01"– 1010 42' 48" E

Pinang Sebatang Estate

Pinang Sebatang village, Tualang Subdistrict, Siak District, Riau Province

00 32' 35" – 00 32' 34" N 1010 34' 30" – 1010 39' 21"

E

Aneka Persada estate Meredan village, Tualang Subdistrict, Siak District, Riau Province

00 32' 35" – 00 37' 35" N 1010 39' 21" – 1010 43' 08"

E

1.4.2 Location of Mill

mailto:[email protected]

http://www.simedarby.com/


ASSESSMENT REPORT


Name of Mill Location

GPS

Latitude Longitude

Teluk Siak POM Meredan village, Tualang Subdistrict, Siak District, Riau Province

0° 35' 29" N

101° 39' 32" E

1.4.3 Maps ( Figure 1 & Figure 2 )

1.4.4 Country Indonesia

1.4.5 Region South East Asia

1.4.6 Tenure

Private

State a. HGU certificate Number 05.02.01.06.2.00003 dated 28 July 1999 for 11,612 Ha

b. HGU on process 421.31 Ha

Community

1.4.7 Area Statement

Total area 11,555.31 Ha

Mature area 9,667.84 Ha

Immature area 60.00 Ha

Mill 21.00 Ha

Infrastructure 374.74 Ha

Nursery 13.96 Ha

Occupation 1,170.08 Ha

Others 247.69 Ha

HCV 499.75 Ha

1.5 Description of Supply Base

1.5.1 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)

%

Teluk Siak Estate 3,320 2,878 57,392.95 20.352 57,392.95 100

Pinang Sebatang Estate 3,856 3,233 70,608.17 22.045 70,608.17 100

Aneka Persada estate 4,379 3,617 69,111.99 19.111 69,111.99 100

TOTAL 11,555 9,728 197,113.11 20.449 197,113.11 100

* Production data July 2011 to June 2012

1.5.2 Smallholder(s) and others

Smallholder(s)

Scheme Member(s) Location

Total Area (Ha)

FFB (tonnes/year)

Supplied to Mill

FFB (tonnes/year)

%

- - - - - - -

AIP, Teluk Siak POM only receive FFB from its own manage and certified estate.

1.5.3 Description of Mill


ASSESSMENT REPORT


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 (%)

Teluk Siak 45 197,006.975 44,551.538 22.61 9,784.838 4.97 - -

* Production data July 2011 to June 2012

1.5.4 Product categories FFB/CPO/PK/PKO

1.6 Dates of Plantings and Cycles

1.6.1 Age profile of planted palms*

Planting Year

Hectarage (Ha)

Teluk Siak Estate Pinang Sebatang

Estate Aneka Persada Estate TOTAL

1993 - 67.73 - 67.73

1994 532 1640.89 565 2737.89

1995 68 484.77 721 1273.77

1996 877 152.11 1619 2648.11

1997 439 448.12 143 1030.12

1998 552 154.21 58 764.21

1999 70 128.79 317 515.79

2000 35.00 - - 35.00

2001 118.00 126.22 35.00 279.22

2003 77.00 - - 77.00

2004 51.00 - 111.00 162.00

2006 0.00 - 48.00 48.00

2008 29.00 - - 29.00

2011 30.00 30.00 - 60.00

TOTAL 2,878 3,233 3,617 9,728

1.6.2 New Development area after November 2005 137 Ha

1.6.3 Planting Cycle 25 Years

1.7 Tonnage Certified

1.7.1 Past Annual Claim Certified Product

FFB Production 172,093 Tonnes/year

CPO Production 35,107 Tonnes/year

Palm Kernel (PK) Production 7,396 Tonnes/year

Palm Kernel Oil (PKO) Production - Tonnes/year

1.7.2 Claim Certified Tonage of FFB

Name of Estates

Total Area (Ha)

Planted Area (Ha)

FFB (tonnes/year)

Yield (tonnes/ha/year)

Teluk Siak Estate 3,320 2,878 57,411 19.95

Pinang Sebatang Estate 3,856 3,233 66,885 20.69

Aneka Persada estate 4,436 3,617 68,176 18.85

TOTAL 11,612 9,728 192,472 19.78


ASSESSMENT REPORT


1.7.3 Claim Certified Tonnage of Palm Product

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 (%)

Teluk Siak POM 45 192,472 43,864 22.79 2,307 5.26 - -

1.8 Other Certifications

1.8.1 ISO 9001:2008/ISO 14001: 2004 -

1.8.2 OHSAS 18001:2007 -

1.8.3 HACCP 027/MS HACCP /2009

1.8.4 Others -

1.9 Time Bound Plan for Other Management Units

Sime DarbyPlantation, owns and operates 39 mills and 129 estates as supply base in Malaysia which already certified. Sime Darby plantation in Indonesia through Minamas Plantation operates 23 mills and 70 estates which 19 mills already certified until September 2012. Sime Darby has made Presently there are 3 mills and its supply base has completed audited and 1 new mill and its supply base still undergone for certified progress on the Time Bound Plan.

Certification Status (November 2011)

Strategic Operating Unit (SOU) Keterangan

Malaysia Indonesia

Certified 33 19

EB Review 6 - RSPO Executive Board review

Completed Audit 0 4 Completed Audit conducted until July 2012

Total SOUs 39 23


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 Lead Assessor and Assessment Team

2.2.1 Assessment Team

ST2 The assessment team comprised: 1. Deni A. Novendi (Lead Assessor). Bachelor of Forest. Natural Resources conservation department special in

ecology and social. He involved in study of social economy of Citanduy-Cisanggarung watershed, Ciamis district, and East java. And also have experience within 13 years in forest planning and conservation on forest concession at Indonesia. Since 2003, he worked for independent certification body as auditor for forest sustainable certification (FSC and LEI scheme); Chain of study, ISO 9001 and RSPO. He audited for several companies. In assessment activity, he focused on leagal aspect, social aspect and environmental aspects.

2. Faruk Ahmad Nasir (Auditor). Bachelor's Degree in Agriculture, Soil Science Major. Specialist in Ecology and Soil Conservation. He has numerously involved in studies concerning ecology, land use suitability, and environmental impact due to oil palm plantations establishment. Aside from the agricultural prospective, he has also numerously involved in studies of performance assessment (LPI) in forestry, for both natural and industries forests plant. In this main assessment, he assessed the soil and environmental aspect.

3. Muardi Marwas (Auditor). Bachelor's Degree in Agriculture, Major on Agronomy and Horticulture sciences. He is currently working in an independent certification body. He has done a number of audits RSPO certification in Indonesia. In this main assessment, he assessed the best practices, occupationally health and safety, and labour aspects.

S1 1. Octo H.P.N Nainggolan (Lead Auditor). A bachelor of Agriculture, majoring of Social Economics of Agriculture (Agribusiness). He has a working experience since 2004 oil palm Plantation Company in Indonesia. Trainings attended namely: Training of Conservation of Natural and Biological Resources in supporting HCV, Basic Plantation Management Program, Plantation Integrated Pest Management training, Followed the Management System Certification (ISO 9001-2008/SNI 19011-9001:2008), Environment Management System (ISO 14001:2004) , RSPO Lead Auditors Training Course, Indonesian Sustainable Palm Oil (ISPO) Lead Auditor training course and supply chain certification system training by BM Trada. Currently, he worked at Professional Certification Body. In the assessment activity, he assessed on legal aspect, best practices, environment aspect, social aspect, workers welfare, FFB Processing and supply chain.

2. Marsudi Eko Santoso (Auditor). Bachelor of Agriculture, majoring in Agro technology. Followed the Management System Certification (ISO 9001-2008), Awareness HACCP certification, training of RSPO auditor and training of RSPO Lead Auditor training, ISPO Lead auditor training and distribution quality management process - APMEA. He had involved several time in RSPO certification assessment activities as an auditor. Currently he works for Independent Certification Body. In this surveillance activity, he assessed on Best Practices, Soil and water conservation, Integrated Pest Management and safety and health.

3. Yudwi Wisnu Rahmanto (Auditor). Bachelor of Forestry with Silviculture background. He has attended in selected training, such as Auditor/Lead Auditor Course Quality Management System (QMS) ISO 9001:2008, Timber Legality Assurance System (SVLK), Verification Organization Training C.A.F.E Practices (Starbucks), Organic Standard (EU, NOP, JAS), Forest Stewardship Council (FSC), Program Endorsement of Forest Certification (PEFC) and Organic Exchange for Textile. He also has experience as an auditor and involved in certification program auditing, such as Sustainable Forest Management by FSC FM/COC Scheme, Coffee And Farmer Equity (C.A.F.E Practices) Starbucks, Sustainable Palm Oil by RSPO Scheme, Organic Standard (EU, NOP, JAS) for Coffee Farmer and Organic Exchange

http://www.mutucertification.com/


ASSESSMENT REPORT


for Textile. Currently, he worked at Professional Certification Body and assigned to verify in Social aspect, conservation and environment aspect during this Surveillance assessment (S1).

Curriculum Vitae (CV) of the auditors are available at PT Mutuagung Lestari Office.

2.3 Assessment Methodology, Assessment Process and Locations of Assessment

2.3.1 Assessment Dates

ST2 18 - 23 October 2010

S1 16 - 20 July 2012

2.3.2 Person days implement assessment on site

ST2 Number of auditors : 3 persons Number of days for assessment at site : 5 days Number of working person-days for assessment at site : 15 person days

S1 Number of auditors : 3 persons Number of days for assessment at site : 4 days Number of working person-days for assessment at site : 12 person days

2.3.3 Summary process of assessment

The assessment was conducted by measuring the sufficiency of implementation with the consistency done by the Aneka Inti Persada (AIP) 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 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 check, aiming to observe directly the sufficiency of implementation on site. The detailed assessment process pleased see Appendix 4 Improvement of findings from Stage-2 findings were observes by auditors at this surveillance-1 assessment. All information obtained was recorded in Check List of PT Mutuagung Lestari (MUTU) and part of Surveillance report.

2.3.4 Locations of Assessment

S1 The sampling locations which determined by Audit Team were two estates at Aneka Persada Estate and Teluk Siak Estate. The sites selected represent each of operational working area. The sites visited are completely presented as follows: 1. APE health clinic. Observation and interview with company doctor related to clinic waste management, periodic health

check and health service to workers. 2. Block D-014, APE. Observation related to harvesting activity and interview with harvesting workers related to

payments, PPE implementation and facilities, social security. 3. Block D014 APE. Observations of harvesting activity and interviews with harvesting workers regarding payments, PPE

implementations, safety work practice, labour social assurance. 4. Block D015 APE. Observation of road upkeep (main road and collection road) 5. Block D016 APE (New housing development). Interviews with contractor workers related to PPE implementation and

safety working practice, payments. 6. Block D017 APE. Observation of integrated pest management. 7. Block E022. Observation of beneficial plant cultivation(Antigonon leptosus, Tunera subulata dan Cassia cobanensis) 8. Blok C024 APE. Interviews with spraying workers and mandor related to PPE implementation, health check, spraying

training, policy of woman rights, prohibit of chemical spraying at riparian area. 9. Block E013 APE. Observation of land fire potency and HCV socialization by sign boards. 10. Generator house at APE housing complex. Observation of hazardous waste handling 11. Block H007 TSE. Observation of empty fruit bunch application, U-sahpe frond stacking at sandy area.


ASSESSMENT REPORT


12. Block F014 TSE. Observation at Land Application area. 13. Fire Fighting team. Interview with fire fighting coordinator and observation of land fire equipments. 14. Fuel tank at APE and TSE. Observation of fuel handling and hazardous symbols. 15. Tualang village. Interview with Tualang village head regarding company social contribution to local communities

development. 16. Block E015 APE, Division IV. Observation of HCV 6 area. 17. Block H018 TSE, Division III. Observation of HCV 1.1 area (peat area). 18. Block G016 TSE, Division III. Observation of water management and Pingai river riparian management. 19. Block B008 APE, Division III. Observation of erosion and degradation of soils control. 20. Teluk Siak palm oil mill. Interviews with station operators regarding payments, PPE implementation, health check and

contractors. Interview with wheel loader operator regarding operator license. 21. Waste Water Treatment Plant (WWTP). Observation of waste water treatments ponds. 22. Hazardous waste temporary storage at Teluk Siak POM. Observation of hazardous material waste handling. 23. HGU poles A-2, A-4 and A-5 at PSE, Division II. Observation of HGU pole maintenance. 24. Division II and IV housing complex at APE. Observation of water treatment for employee facilities and oil and fuel

handling at generator house. 25. Pingai River riparian at APE. Observation of erosion control and HCV 1 management.

2.4 Stakeholder Consultation and List of Stakeholders Contacted

2.4.1

Summary of stakeholder consultation process Consultation of stakeholders for AIP was done in 2 ways: 1) Public Announcement on RSPO website: (www.rspo.org), 30 days before audit surveillance 1.

2) The public consultation meeting with internal stakeholders by interviews and local stakeholders conducted by visits to

Tualang village and interviews with local peoples. Numbers of input from stakeholders were clarified by AIP.

2.4.2 List of stakeholder contacted

Please find appendix 3

2.5 Determining Next Visiting

The next visit (Surveillance 2) will be determined one year after this surveillance-1.

http://www.rspo.org/


ASSESSMENT REPORT


3.0. ASSESSMENT RESULT

3.1. Summary of Assessment Report of the RSPO Certification

MUTUAGUNG LESTARI has conducted a Surveillance-1 assessment of PT Aneka Inti Persada Operation consisting of 1

(one) mill and 3 (three) oil palm estates. MUTUAGUNG LESTARI found that PT Aneka Inti Persada comply with the

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

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

a certificate of compliance is maintained.

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.

AIP has a SOP Request for Information (RSPO/1.1/P1) Number Doc: 008/AIP-PI/VIII/10, rev.01, dated 2 August 2012. Recorded

evidence and feedback on requests for information from stakeholders is stored in the book Records of Communication with

Stakeholders. For example: there are requests for information from the sub district Tualang (No: 570/PMD/163, dated March 20,

2012) on data request and total investment.

The response from the PT. AIP form in acceptance visits of data collection implementation on 26 March 2012. The Company also has an SOP Control Records (RSPO) Number 011/PC-AIP/VIII/10 dated 2 August 2010, related to the determination of documents retention time of records based on their interests, however AIP need to enhance the orderly administration of the records and recording every piece of information according to its interests. (Observation 1)

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.

AIP showed the types of documents can be accessed by the public, including: Land Use Right (HGU), Plantation Business Permit (SIUP/IUP), Licensing, HCVA, SIA, waste and applications, EIA, RKL / RPL, OHS, Employee Data, FFB Data Production, Crude Palm Oil-Palm Oil Kernel Production Data, Hazardous material waste data, Specifications of Factory machines, Vehicle Specifications, Guidelines for Sustainable Plantation Management, however the list of documents has not integrated in the SOP Request for Information (RSPO/1.1/PI) Number Doc: 008/AIP-PI/VIII/10 dated 2 August 2010, rev. 01, the effective date on 2 August 2010.

PRINCIPLE #2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

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

AIP showed Evaluation results matrix on the Regulatory Compliance and Regulations includes names of regulation, Section, and Compliance Status, however AIP has not been completely conducting with applicable regulations, such as: 1. Realization Activity Report of hazardous material waste storage has not been delivered every three months to the relevant

agencies. It is not in accordance with the Minister of Environment Decree Number 260 year 2009 on hazardous material waste

storage permit that states activities of hazardous material waste storage realization must be reported at least once in the three

months to the relevant government institutions.


ASSESSMENT REPORT


2. The fuel tank has not already equipped with a hazardous material symbols. It is not in accordance with the Government

Regulation number 74 year 2001 article 18 paragraph (1) Jo. Regulation Minister of Environment number 3 year 2008 on the

procedure the hazardous material symbol and label.

3. AIP has not shown the reports of waste water monitoring results utilization into the soil every 3 (three) months not accordance

with Government Regulation number 82 year 2001 section 34 subsection (3).

4. Heavy equipment operator (Loader) in the Teluk Siak Mill does not have Operator Permit (SIO) not in accordance with the

Regulation Minister of Labour (Permenaker) Number 9 year 2010, section 11 of the Forklift Transport Operators in the ground

and the upper surface.

5. Welder in the Teluk Siak Mill does not have qualifications as a welder not in accordance with the Minister of Labour Regulation

(Permenaker) Number 2 year 1982 on welder qualification in the workplace.

Non Conformance see CAR.2012.01 AIP has demonstrated an effort to make adjustments to changes of rules for example Minimum wage of workers, each year has made changes accordance to Riau Governor Regulation. AIP has a mechanism to evaluate the regulations and legislations presented in the form of a matrix 'Evaluation of Regulatory Compliance', contains information on legal requirements to be fulfilled, the article must be fulfilled, an indicator of compliance, compliance status, and details that show material compliance. Documented system by AIP which provides information and legal requirement that must be fulfilled by companies contained in SOP guidelines for Sustainable Plantation Management Number724/TQEM-SPMS/09 in Chapter 1.2 explained compliance with the Act and Regulation and Legal Requirements SOP document number 010/PH-AIP/VIII/10 PT Aneka Inti Persada ratified on 2 August 2010 which describes the identification mechanism of compliance in related regulations

Major 2.1.1 Non Conformance see CAR 2012.01 with major category

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

Acquisition of legal rights on land management by the company as evidenced by HGU Certificate:

1. Land Use Rights (HGU) number 05.02.01.06.2.00003. Village Meredan / Tualang / Pinang Sebatang / Kuala Gasib, Siak sub

district, Bengkalis district, Riau Province, dated July 28, 1999 covering 11,134 ha.

2. Decision of Mayor of Pekanbaru Number 01 Year 2008 on the Location Permit to PT. Aneka Inti Persada coverage area of

421.313 ha dated February 28, 2008. The document describes the AIP should make the acquisition of land rights within a period

of 12 months and can be extended 12 months later, however AIP has shows process of land use permit (HGU) to national land

agency on 5 November 2009 document number 162/AIP/UM/PSD/XI/09 the evidence progress given will observe on next

surveillance assessment (observations 2).

AIP has shown a document the boundary in every estate, in the form of maps and photographs of the pole installation. Number of poles mounted on the APE (Aneka Persada Estate) - 12 poles, TSE (Teluk Siak Estate) - 28 poles, and the PSE (Pinang Sebatang Estate) - 30 poles. Based on field visits to Block A-002, D-005 Pinang Sebatang Estate, boundary poles can be found easily and clearly demarcated. Evidence of land conflict resolution was available at the location and can be identified on a company's work map. Visits to the area of Block A-001 and A-04 Division II PSE, the area declared by the company as a community occupations areas, which showed most of the area was still in good condition as secondary forests. AIP has made delineation of the area by building a trench along the boundary, which is a corporate initiative to remove the area from corporate management. area has been mapped to the company`s Working Map Area, as the occupational area. Resolution evidences available at AIP in the form of a receipt of compensation payment, land Release Letter, not dispute statement


ASSESSMENT REPORT


letter, and photos of compensation submission. Available procedures number 007/AIP-PK/VIII/10 dated 2 August 2010, in Section V Sub Section 5.15 states that the form / process of conflict resolution in accordance with the agreement of both parties and contained in the socialization of PT Aneka Inti Persada SOP on Handling Employee and community Complaints dated 13 July 2007 witnessed by Kuala Gasib village chief, Tualang village chief and Maredan village chief.

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.

AIP has made Social Impact Assessment and High Conservation Value Area Identification within areas under its management;

however none of the documents that present the statement/ensure the existence of traditional rights (customary rights).

AIP has provided the documents 'Response The existence of Communal Land Right in Rokan Hilir' issued by the Land Agency Office

District of Rokan Hilir 2001. Chapter 3 states that indigenous land rights can be obtained from the Sultanate and/or by an individual

through the land clearing that nurtured for generations.

Based on the realization of compensation payments in 1995, 1997, and 1998, all claims made by individuals, there is no land claim on behalf of the rights of traditional or customary rights. Traditional activities are still carried by many people around the working area of the company, are taking fish in the rivers and ditches in the area of corporate work. Related with this activity, the company controlling fishing without using poison or electrocute, however allowed for fishing, catching, or other traditional way.

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.

AIP has a document the company's work plan for the short term the Year 2012-2013 Work Plan and contained in the 2012-2016 Budget allocation for the Teluk Siak Estate, Aneka Persada Estate, Aneka Persada and Teluk Siak Mill the distribution of the work plan include:

a. Forecast production of 2012-2016, the production yield (ton / ha), administration cost, labor cost, mature upkeep, manuring,

harvesting and collection, transport, etc..

b. Forecast mill intake (FFB), palm oil extraction, kernel extraction, processing cost, admin cost, training cost, cost

Environment, Health cost, transport cost, etc..

c. Corporate environmental management plan has allocated for water supply activities of employee, the cost of OHS, RSPO,

HCV, EIA, etc.

d. Social activity the company has plans to allocate religious holidays, the wages of teaching staff, the cost for CSR programs

and social contribution to society, etc.

AIP has a long-term replanting plan in the form of documents Long Range Replanting Programme (LRRP) and replanting Plan Map

in 2012-2030. This plan aims to redesign from the previous block, especially for crops planted by the year 1993, 1994, 1995 and

1996. Policies established by AIP include plant age over 25 years, the yield below 18 tons / ha, plant height in excess of 15 meters

and carried out systematically (centralize) and followed the operational pattern such as BHS (Block Harvesting System), BMS (Block

Management System), BSS (Block Spraying System), for its implementation will begin from 2012 in the Teluk Siak Estate, Pinang

Sebatang Estate and Aneka Persada Estate.

Estate Year 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

Teluk Siak Width 239.6 Ha 377.27 292.14 169.67 144.6


ASSESSMENT REPORT


Planting Year 1994 1996 1994 2001 1998

Pinang

Sebatang

Width 197.73 Ha 275.0 Ha 275.0 Ha 223.11 Ha 204.5 Ha

Planting Year 1993, 1994 1994 1994 1994 1994

Aneka

Persada

Width 369.82 396.38 421.41 189.52 175.9

Planting Year 1994, 1997 1994, 1995 1995 1995, 1996 1996

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

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

AIP, Minamas Plantation has SOP related to estate management from land clearing to harvest contained in AGRONOMY REFERENCE MANUAL SOP (AGRICULTURAL REFERENCE MANUAL) NumberPolicy: 110/EST-ARM/08, promulgated on 22 December 2008: planting materials, nursery techniques, replanting, land preparation, planting density, maturity age, field upkeep, manuring, canopy management, management of coastal water in the soil/plant oil palm on peat, ablation , ripeness standard, harvesting interval, tracebility, plant protection. AIP also has the procedure contained in the Mechanical Palm Oil Plant Manual SOP from receipt of FFB, processing until the CPO and PKO dispatch to the operations of Palm Oil Mill. There are monitoring of operational activities undertaken by AIP such as Plantation Adviser activities and Mill Plantation Adviser set up for 2 (two) times a year and the activities of Internal Audit 2 (two) times a year. AIP periodically informed of all operations in both the estate and mill in each month and results of operations are set forth in this

Estate Unit Report document made by the Estate Manager and Monthly Report made by Mill Manager.

Teluk Siak Mill Monthly report made in June 2012 that describes the monitoring results of operational activities of each month as of

receipt of FFB, production data (CPO production and extraction, Kernel production and extraction), quality and loss of production,

production costs, the number employees and housing, inventory (stock item), the expense recapitulation.

Estate reports of Pinang Sebatang Estate made in June 2012 describes the area statement, organizational structure, employee data, housing and buildings, rainfall data, FFB production, treatment plants, fertilizer, new crops (replanting), breeding, improvement of road , stock of goods and operating expenses recapitulation.

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

Available document, reports the results of soil analysis Semi detailed soil map Legend PT Aneka Inti Persada, Sime Darby Plantations by the Department of Research (MRC) in the period 2009/2010. Available document reports the results of the topography of the land survey period 2009/2010, for example in Pinang Sebatang Estate belongs to the hilly slope class (3,068 ha); flat (126.0 ha); wavy (51.0Ha). There are reports of leaf analysis conducted every year followed by Fertilizer Recommendation period July 2011-June 2012 in Aneka Inti Persada, for example in Block E023 classified into types of peat. Based on the results of soil analysis fertilizer recommended such as Cu, Zn. B. Realization of fertilizer application available in the document Fertilization Data. Available SOP for Fertilizing with an empty bunch inside Agronomy Reference Manual Section 8.3 (Number 110/EST-ARM/08) Point 2 states that Empty bunch applications recommended 12-month intervals and applied to weeding or on the frond stacks. There is a program and monthly Empty bunch application of 2011/2012, for example, an EFB application program in Block C009 realized the period 2011/2012 realized 36.7 ha with a volume of 35.71 tons. Based on field visits at TSE Division I block H007 known empty bunch application areas and U - Shape Frond Stacking were implemented.


ASSESSMENT REPORT


4.3 Practices minimize and control erosion and degradation of soils.

The company showed Semi Detail Soil Map of PT Aneka Inti Persada 1:50,000 scales that describe in detail the dissemination of soil types and the distribution by suitability level for palm oil cultivation. Soil erosion and degradation are controlled by AIP through the following methods: - U shape frond stacking by cut fronds along the counture in slope areas to minimizes erosion from surface runoffs. - Planting of beneficial plants (Nephrolepis sp) between palms. - No chemical spraying along the riparian and streams allowed and cultivated the natural vegetation There is documented evidence in the Road maintenance and records of work done are available. Based on a field visit to Block D015 known to have Main Road 5 maintenance activity (paving activities). The visits showed that both methods in the maintenance of roads primarily for soil conservation purposes. Main road maintenance activity not dispose of land eviction into the ditch, and drainage ditches road side drain way into the block area (not flowed directly into the river). For peat area that has been cultivated into oil palm plantations, for example at E023 APE blocks covering 67 ha, cultivated by building a canal (drainage) for the purpose maintain water control structures.

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

Based on documents from the Head Plantation Operation (HPO) Memorandum, Minamas Plantation Number POD-UM-061/IV/2010

dated March 8,2010 on the Management and Monitoring Area of HCV describing the handling of the area along the river such as:

1. Marking the points of palm oil with yellow paint along the 50 (fifty) meters left and right sides of the river border and not allowed a

chemical treatment (chemical spraying and fertilizing inorganic).

2. In the border river area, palm oil plant is not allowed to cutting down, however it was gradually replaced by woody plants

(Indigenous plant).

The rainfall data for all the estates are recorded daily and is maintained. Based on the results document of identification of High Conservation Value (HCV) in 2010, the entire riparian area and wetlands contained in the work area AIP has been set to manage as an area of HCV 1 (Pingai River buffer zone - 129 ha, and the Gasib River - 79 ha); HCV 1.1 (source of water from block H-20 12.57 ha), and HCV 4.1 (swampy area block J 47, J 46, I 47, I 46, H 47, H 46, H 45 to 166.94 hectares). Based on a field visit to the Pingei riparian known that the area is maintained and protected under the forest plant. Implementation of water management programs have been carried out by the AIP by performing water quality testing is conducted periodically every 6 (six) months in an accredited laboratory. Test results showed that water quality remains in compliance with the regulation. Available BOD Monitoring records in Raw Effluent and Effluent Treatment performed Teluk Siak Mill regularly every month are analyzed in the laboratory, such test results of wastewater analysis in June 2012 with a sample of the Effluent Treatment parameters describing the test parameters were in accordance with regulations required. AIP has monitored the water usage in form of Recapitulation Water Use/Tonnes FFB. The document describes the monitoring of water use for the factory every day and made a recapitulation of data each month There are the results of the evaluation and improvement of the results of monitoring the use of water in the Teluk Siak Mil describing the efficiency of water use with reuse water washing plant for processing.


ASSESSMENT REPORT


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

All IPM plans and program were monitored and updates by AIP in all estates for example Monitoring plan (Early Warning System) of rat, caterpillar, bagworms and termites every month that includes the census activity, the extent of pests, and control methods that conduct in case of attack. Owls and beneficial plant monitoring is programmed every month. Monitoring records of caterpillars in the document Recapitulation of caterpillars Census, for example in the Teluk Siak Estate Division II. Based censuses in June 2012 there were no attacks, the census results are sent to the Plant Protection Department MRC. AIP has shown evidence of training form in Attendance and training materials regarding Integrated Pest Management of fire caterpillar and Oryctes. Implemented by the MRC September 10-11, 2009, attended by 21 participants (consist of Assistant, Senior Assistant, Manager, and General manager). Training in the Teluk Siak Estate Meeting Room. Based on a field visits to APE Block D17 there are owl nests are still active and well monitored. Available monitoring documents use of pesticides per hectare, for example in the APE period 2011/2012 for example Kenlon 480 EC (Trichlopir butoksi etil) use Active ingredient 43.2 gram/ha.

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.

Available evidence of the use of chemicals registered and authorized by the relevant agencies, for example:

a. Meta Prima 20 WDG; active ingredient methyl metsulfuron 20 WDG; Number Register RI.1897/8-2008/T

b. Decis 2.5 EC; active ingredient deltamethrin 25 g / l; Number Register RI.387/11-2007/T

c. Prima up; active ingredient: glyphosate isoprofilamina; recommended dosage 2-3 liters / ha; recommended dosage 2-3 liters / ha

Registration Number: RI. 1779/11-2007/T.

Available Work Achievement Report and Use of Chemical Materials, for example Circle Weeding, based on the report note that the

circle weeding upkeep is conducted every 3 months at PSE Block A005 Division I with an area of 62.655 ha spraying in January

2012.

The Company has shown that the entire MSDS for each agrochemical used in the Indonesian language that can be understood by

all employees.

Pesticides used by AIP were accordance with the active ingredients for specific types of species:

1. Herbicide with active Methyl Metsulfuron for example: Dieffenbachia sp, Melastoma malabatricum, Chromolaena odorata

2. Herbicide with active Glyphosate to Grass weeds.

3. Herbicides with active Trichlopyr for example: Tetracera scandens

AIP chemical spraying worker were trained appropriately to conducted the spraying. Trainings were:

1. Training spraying of Spray product - in the Teluk Siak Estate on September 23 2010, attended by 36 people consisting of

managers, Staff Assistant, senior supervisor, sprayer, mandor.

2. Spraying Simulation on March 23, 2012 to employees who carried out by the upkeep mandor. Equipped with a list of 11

participants attended and shooting events.

3. Available Minutes of Training for Spray Team on April 19, 2012 in PSE, followed by 34 people (spraying workers) and equipped

with a list of present and picture activities.

Based on interviews at PSE known that the chemical spraying workers already received the training.


ASSESSMENT REPORT


Agrochemical waste handling and packaging of pesticide set forth in procedures hazardous material waste SOP Number 7307/AIP-

ESH-10 dated August 2, 2010 covering the rules of storage and transportation of hazardous material waste. Described (Work

instruction) hazardous material waste handling through processing / discarded / destroyed according to regulations) and work

instructions.

Available Minister of the Environment Decree Number 260 year 2009 on hazardous material waste storage permit for PT Aneka Inti

Persada Mill is located in the Teluk Siak (Coordinates: 00035'29 "N and 1010 39'32" E).

Available documents Delivery Details of Hazardous material waste collected by licensed company on 9 April 2012. Equipped with

hazardous material waste manifest documents, manifest and transported identity.

Based on field observations in the spraying house of TSE is known that waste water spray from washing equipment contained inside

the tank and reused for spraying activities. CAR.2010.29 is closed

Based on the document record at AIP Central Warehouse, information found was last time AIP using the Paraquat herbicide was on

3 March 2009. There is a Memorandum Number POD-UM-127/X/2008 about prohibition of pesticide use with active ingredient of

paraquat used by the AIP does not include chemicals that are categorized as Type 1A or 1B WHO materials listed by the Stockholm

and Rotterdam convention.

All the spraying workers were regularly every year conducted the medical health check the parameter checked Includes blood

tension, height, weight, eyes, ears, audiometric, nose, mouth, teeth, lungs, chest, heart, liver, stomach, kidney, upper extreme, lower

akstrim, Genitalia , Kidney, Uric Acid. The results of the examination available in AIP Clinic center.

AIP shows that no work with pesticides for pregnant and breastfeeding women in operational AIP also shows transfer employment from manuring worker to non chemical exposed work at APE based on the results of health examination of the doctor concerned stated that positive pregnant since March 5, 2012.

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

Available occupational health and safety (OHS) policy of Minamas Plantation On May 31, 2007 (Number Policy: 711/TQEMS-

P2K3/07), which contains the commitment:

Companies are responsible for implementing the OHS program in all estate and Mill. To realize this goal company has established

operational procedures across the estate and Mill. Determination is embodied in the fulfillment OHS labor legislation and will conduct

continuous improvement and sustainable so that it becomes facilities of risk control and management of business activities..

However based on field observations known that:

1. Contractor workers who did not use personal protective equipment (PPE) in APE Block D16 (housing development Area),

2. Contractor workers in the Teluk Siak Mill workshop did not use specified PPE.

It is not accordance with the company goals and objectives of the OHS policy endorsed by Minamas Plantation to provide protection

to everyone involved in the company activities.

Non Conformance, see CAR.2012.02 Available AIP OHS Guiding Committee based on the Decree of the Head of Social and labour Agency district Siak Number

560/Disosnaker/SK-P2K3/725 and the activity reported quarterly to Labour agency.

There are regular meetings OHS Guiding Committee performed every 3 months:

1. OHS Guiding Committee Monthly Meeting, dated March 2012, the material covered include driving safety, sanitation, road


ASSESSMENT REPORT


maintenance, maintenance of traffic signs. Attended by 16 participants completed the attendance list and minutes of the

meeting.

2. OHS Guiding Committee Monthly Meeting, dated March 2012, the material covered includes driving safety, sanitation, road

maintenance, maintenance of traffic signs. Attended by 15 participants completed the attendance list and minutes of the

meeting.

Based on document observations shows all workers in AIP provide with Labour Social Assurance and the contribution payment

details recapitulation details on May 2012 Pinang Sebatang Estate for 563 employees, Teluk Siak Estate 504 workers equipped with

evidence of payments.

Available documents of health examination for all workers in AIP by the external Clinic Laboratory, the results of the examination

available in AIP Clinic center. , however the special medical examination for operators who work in areas with high noise station

(audiometric test) has not been done.

Non Conformance, see CAR.2012.03

Available records occupational helath and safety risk analysis program at estates and mill for every working activity in form of

Hazard Identification Risk Assessment Control document, for examples:

1. Spraying activities; type of work Pouring poison; danger of contamination include fertilizers, effect (respiratory irritation), Risk

(Medium), Risk Control (Use of Masks).

2. Fertilization activities; type of fertilizer application work; Exposure Hazards include spills of pesticides, effects (irritation and

inflammation of the skin), Risk, Risk Control (Use of a complete PPE).

3. Loading Ramp fruit filling activities on the conveyor; Potential Hazard: The chains exposed,-effect: injured, Risk: Medium;

Recommendations : making the limiting level of fruit on the conveyor, conduct the training, supervision

AIP conducted the safety and health trainings for workers, for example:

1. Simulation and Training First Aid in Accidents (P3K) on the date 29 March 2010, attended by 33 people (including the estate

manager, assistant, and foreman). The material that presented was integrated emergency response system (artificial breathing,

shock, fractures, drowning people, and to stop the bleeding).

2. Simulation of emergency response and first aid dated February 1, 2012 was attended by 33 participants completed the

attendance list and photographs of activities.

3. Simulation of emergency response on fire and earthquake on 18 September 2011 attended by 29 participants, equipped with a

list of present and picture activities.

4. Available boiler operator certificate examination results of the Indonesian Labour Department.

All records of trainings are available in AIP office.

AIP has procedures for emergency responses in form of training for emergency response procedure, identification and evaluation of

potential emergency procedure, fire prevention and reduction procedure, explosion Prevention and reduction procedure, earthquake

procedure, Preparedness ,emergency response and recovery.

Available Inspection for fire extinguishers and first aid kit condition performed every month by safety officer and personal protective

equipment handover to workers. All the data of OHS and first aid kit equipment were available at AIP office. Based on field

observations at APE Block C24 spray workers has been known that using full PPE (gloves, eye glass, apron and safety shoes) at

APE Block C24 is known that the spraying mandor carrying first aid boxes and at APE Central Warehouse found the first aid box and

its contents completed according to available list.


ASSESSMENT REPORT


AIP has shows an evidence of first aid training on 27 October 2011 was attended by 15 people (including the teacher, baby sitter and

mandors), the material that presented was integrated emergency response system (artificial breathing, shock, fractures, drowning

people, and stop the bleeding). Training for Simulation and First Aid in Accidents (P3K) on the date 29 March 2010, attended by 33

people (including the farm manager, assistant, and foreman). The material that presented, was integrated emergency response

system (artificial breathing, shock, fractures, drowning people, and stop the bleeding)

There are regular monthly monitoring records of occupational injuries PT Aneka Inti Persada, Period June 2012. Monitoring data

indicate there were 22 accidents in the estates in minor accident types (no loss of working days). Analysis of occupational accidents

is available on the Safety Performance Report documents at Teluk Siak Mill Safety Performance Report on June 2012 period.

Major 4.7.1

Minor 4.7.2

Non Conformance see CAR 2012.02 with Major category

Non Conformance see CAR 2012.03 with Minor category

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

AIP have a training program at Pinang Sebatang Estate period 2011/2012 which includes the type of training and procedures for the

implementation, for example training of fire accidents programmed in July 2012, training the use First Aid of programmed November

2012, the driver training is programmed in November 2012.

Trainings by AIP were conducted for staff and workers in appropriate program by identification of trainings needs. Available training

records for every staff in form of Employee Training History General, PT AIP period 2011/2012, for example Training of the HCVF on

14 November 2011, Occupational Health Training (audiometric and Spirometry) 20 September 2011 by Kuswadji Brothers

Foundation, Purchasing management training17 April 2012 by LPPM-Jakarta.

Available training records for each employee for example the minutes of safety driving / riding training, spraying of Spray product at

Teluk Siak Estate on 23 September 2010 attended by 36 people consisting of managers, Staff Assistant, I foreman, spray foreman,

and spray employee. List and records was available at AIP office.

AIP has a selection mechanism with requires to the contractor who owned the sufficient experience, appropriated trainings and legal

entities.

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.

Environmental document of PT. AIP available in the unit, among others:

1. EIA documents ratified by Minister of Agriculture Number007/ANDAL/BA/II/1995 dated February 2, 1995, covers 12,000

hectares and the area development plan for palm oil mills with a capacity of 60 tons / hour;

2. Document of Environmental Management Plan (RKL) ratified by Bengkalis district Environment Control Agency Number

094/RKL-RPL/BA/V/1996 dated May 15, 1996;

3. Document Environmental Monitoring Plan (RPL) ratified by Bengkalis district Environment Agency. Number 094/RKL-

RPL/BA/V/1996 dated May 15, 1996;

4. AIP also has social impact assessment document (2010) which explains the existence of areas that should be managed and

protected, and social impact of current developments.


ASSESSMENT REPORT


Based on the environmental document, there are 7 (seven) types of impacts that all has been managed and monitored, which are:

the management of soil erosion, air and water quality management, Labour management, community management of economic

improvement, the management of flora and fauna, and management of public unrest.

AIP has carried out the evaluation regarding RKL/RPL reporting mechanism which contain in Report procedure Policy Number

730/PSQM dated 20 December 2011. AIP has reported environmental report (RKL-RPL) Period I in 2011 (Jan-June 2011), Period II

in 2011 (July-December 2011) to the District and Province Environment Agency (BLH) were recorded by the company.

CAR.2010.26 is closed.

Available relevant communication of replanting plan application for the environmental assessment of AIP on 29 September 2011 in

order to revised document on the environmental assessment due to replanting operations to be implemented in 2012. AIP also has

prepared for the first semester (January-July) 2012 environmental report.

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.

AIP has conducted the HCV identification presence of protected species and habitats in the AIP work area and evidence of NGO and

Research Institution involvement on HCV identification has shows by AIP for example from Bogor Agriculture Institute and Laskar

Merah Putih local NGO.


The steps taken to protect endangered species, rare and close to extinction species and their habitats, the results recommendations

by the identification implementer of HCV have been fairly well implemented by management. These activities include monitoring /

observation type of HCV and posters or warning signs around the AIP. Available minutes of HCV / NKT observations dated June 30,

2012. Observation locations: Div IV PSE, Conservation Area, Block D013. HCV types were observed: HCV-1, time: 14:00 to 18:00

pm; Executor: Darmawan S. Monitoring examination involves observation of animals (27 species; Mammalian and Aves).

Observation method based on direct encounters and employee information. Monitoring Inspection Flora: recorded 17 species from

28 species of trees.

The existence of specialized and trained personnel in HCV observations, facilitate PT. Aneka Inti Persada in managing values of the

existing HCV, however based on field observations is not sufficient evidence that HCV socialization to the community surrounding

the PT. Aneka Inti Persada affected by plantation activities have been conducted and well documented.

Non Conformance raise CAR.2012.04

AIP has carried out training to HCV officer on 24 February 2011 on behalf Suwarno (APE), Darmawan (PSE) dan Syafrijal Nasution

(TSE). CAR.2010.28 is closed.

Minor 5.2.1 Non Conformance CAR 2012.04 with Minor category

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

Waste Identification and management adequately generated by estates and mill operation (type of waste, the source of waste, the amount of waste manifest). Environmental document (AMDAL) identifies the management and monitoring of waste consistently managed according to operational procedures.


ASSESSMENT REPORT


Waste management plan were implemented by AIP for example solid waste fibre and shell were use for boilers operations, empty fruit bunch application in estates, POME used in the field in land application, domestic waste were sent to landfill, Clinical waste is collected and sent to cooperate hospital for disposal every 6 months. However hazardous waste contamination from diesel fuel and oil used was still found spill at APE housing complex and at the APE diesel fuel storage does not equipped by oil trap. TSE and APE diesel fuel tank found the diesel fuel spill contaminate the soil with no trap in the location. Non Conformance raise CAR.2012.05

Management and disposal plan for hazardous waste were available in AIP procedures. Numbers of procedures are hazardous material waste handling procedures SOP Number 7307/AIP-ESH-10, Handling of used pesticides packaging Number 701/IK-TQEM-ESH/10, Handling of used lubricating Number 702/IK-TQEM-ESH/10, Clinical Waste Management Number 703/IK-TQEM-ESH/10, Receipt and Storage Used Batteries procedure. AIP has monitored and analyzed the waste in form of hazardous material waste Balance Sheets documents of PT. Aneka Inti Persada

Major 5.3.2 Non Conformance CAR.2012.05 with Major category

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

Available data on the analysis of the renewable energy efficiency (fiber and shell) undertaken on a daily basis and the amount of renewable energy used per ton of CPO and a summary matrix of diesel fuel use for generator set period July 2011 - June 2012 describing the diesel fuel cost savings per month, material costs and total cost savings / month. Records of fossil fuel usage available and differentiate sector of use also available (vehicle and machines) and efficiency analysis use of diesel fuel can be reduced by optimizing the use of fiber and shell as boiler fuel.

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.

No replanting or new planting at AIP. Based on observations no evidence found of burning of domestic waste and replanting.

Guidelines for the Sustainable Management of Plantation Number Policy 724/TQEM-SPMS/09 page 22 Section V (Planning) points

5.7.2 of the technique without burning (Zero Burning).

Available land fire reduction procedures (Number 7311/AIP-ESH/10. The procedure has been described the stages of fire prevention

and control activities are inadequate.

The company already has an organization structure firefighting and fire fighter task force and the firefighter’s task force has been

trained in firefighting and fire simulation. Training record evidenced available at AIP office.

Fire Extinguisher condition inspection performed every month. The Company also has shown the results of the data in the form of a checklist of fire extinguishers equipment. Based on field check to APE found appropriate fire extinguishers and land fire facilities (fire extinguisher, fire hose, water pump, fire nozzle, fire vehicle) in good condition.

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

Environmental report documents RKL / RPL during the period II (July-December) of 2011 explained that the implementation of air quality and emissions monitoring is conducted periodically every month, air and mill effluent samples were taken and analyzed in the accredited laboratory. AIP shows waste identification, environmental impact of waste, action plans taken and monitoring to reduce


ASSESSMENT REPORT


pollution and emissions. There is a management program to reduce pollution and emissions for example use the solid produced by palm oil mill effluent and applied to the field to reduce methane gas emission. No peat was identified at AIP. AIP has a record of mill effluent management which inform debit of wastewater produced from WWTP and debit of mill effluent

treated (1 deoling pond, 1 cooling pond, 2 aerobic pond, 2 anaerobic pond , 2 application pond).

AIP owned land application permit. Land Application can be used on an area of 200 ha in block F-27, F-28, H-29, F-22 and E-22.

Monitoring the application of liquid waste (land application) conducted by the AIP are:

1. Monitoring of Mill effluent that comes out (effluent treatment pond) every month with the analyzed parameter is the debit of

waste, BOD, COD, pH, oils / fats, Pb. Cu, Cd, Zn.

2. Monitoring wells are monitored in each application block every 4 (four) months with the parameters analyzed were BOD, COD,

pH, N, NH, Cd, Cu, Pb, Zn, Cl, SO42.

3. Soil quality checks on the Land Application (rorak / flat bed) every 6 (six) months to control the depth of 0-20 cm, 20-40 cm, 40-

60 cm, 60-80 cm, 80-100 cm, 100-120 cm with the parameters analyzed were pH in water, organic C, total N, available P, etc..

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.

Available environmental and social impact documents/AMDAL (1995), RKL / RPL (1996) and Social Impact Assessment (2010) that

includes information important social impact caused by the operation of palm oil estate and mill of PT. AIP.

Social Impact Assessment results led to 5 (five) importance social impact, consisting of: (1) economic growth in the region, (2)

availability of employment and business opportunities for the community, (3) the accessibility of the region, (4) interaction and

adaptation work ethic communities , and (5) maintenance site legends (old cemetery). RKL / RPL identifies 3 (three) kinds of social

impacts provision of employment, higher income residents, and social unrest.

RKL-RPL Period II in 2011 (July-December) has been reported periodically to the district environment body; however not enough

evidence of the local community’s involvement and participation on directly affected by AIP operations in the preparation of RKL /

RPL. Based on the interviews with the villagers around AIP plantation no evidence that involvement between the AIP and the

community around AIP has been held in the management and monitoring of social impacts.

Non Conformance see CAR.2012.06

AIP has shown evidence of community unrest management with measureable parameters, for example numbers of AIP employee’s

from community around the AIP plantations and there was no complaint record found from the community complaint book.


AIP do not have smallholders scheme.

Minor 6.1.1 Non conformance see CAR 2012.06 with Minor category

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.


ASSESSMENT REPORT


AIP has Communication and Consultation with the community procedure (RSPO/6.2/KKM), dated August 2, 2010. Records of

Communication with Stakeholders, Records of Communication with Workers and Contractor, plantation community Inspiration Books,

however there was no evidence of consultation and socialization has been conducted to communities and workers.

Non Conformance see CAR.2012.07

AIP has a Stakeholder Identification consisting of: 31 Local Government, 11 NGOs, Community Leaders Around the AIP (5 villages and 4 youth communities), 3 Product Buyers, 13 Contractor Partners, 2 Schoolsand 10 Hospitals. AIP providing to record request and response related to communities social aspect. Evidence of community aspiration and response are well record at community aspiration book. AIP have personal to responsible for communication and consultation with communities at plantation service department.

Major 6.2.1 Non Conformance see CAR.2012.07 with Major category

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

AIP facilitate open mechanism in the form of public complaints handling procedure and mutually agreed. Available Complaints Log Book (Book of Complaints) Community around estate that contains the date, name of the complainant, Issues, follow-up, the scope of the settlement, the complaint date. During surveillance assessment takes place, there are unidentified complaints from the public to the company. If a conflict or complaint arise deadline for responses was 14 days. Complaint resolution mechanism for AIP worker was dealt by worker representative (worker union) at AIP and followed with complaint letter submit to company representative (estate manager) and will be respond within 14 days.

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.

Available Social policy on the Sustainable Plantation Management Guidelines Number Policy: 724/TQEM-SPMS/09 by Plantation Upstream Indonesia ensure that any negotiations relating to compensation for the loss of a person's rights are valid under the Act have been made with a documented system that enables local communities and other stakeholders to express their views through their own representative institutions. Records evidence of land acquisition negotiation process at the beginning of the company's operations is available and well recorded. During surveillance there were no new records on issues of compensation or complaints from the communities.

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.

Available payments document inform the amount of wages, benefits, premiums, social security, and wages received by every worker at AIP according to average minimum wage established under Governor Regulation of Riau Province Number year 2012. Available company regulation accordance with national regulation which agreed by BKS-BPS (Sumatera Plantations Company Cooperation Agency) with the Central Executive Federation of Trade Unions of Agricultural and Plantation Workers Union of Indonesia (PP.FSP.PP-SPSI). AIP provides facilities for workers housing, elementary school and junior high school, clean water; health facilities/clinics, school transport. AIP has shows Water Sample Test Result Report for clean water facility at Division II APE on July 31, 2012 in the laboratory of the Department of Health and Environmental Health, Riau Province. AIP has planned for the construction of Water Treatment Plant at APE and has done stage agreement with contractor and planned completed on February 2013.


ASSESSMENT REPORT


(CAR 2010.31 is closed with observations) AIP shows the document Letter of Agreement with contractor explain the provisions of labor (employment) and safety policies in

Indonesia, Social Security (JAMSOSTEK) to the workers of the contractor to be responsibilities of second parties (contractors),

contractor must have the certificate of any operator licensing, classification and qualification according to existing regulations and

contractor responsible for providing the tools and facilities to maintain the safety of contractor workers.

6.6 The employer respects the right of all personnel to form and join trade unions of their choice and to bargain collectively. Where the right to freedom of association and collective bargaining are restricted under law, the employer facilitates parallel means of independent and free association and bargaining for all such personnel.

Company policy that gives workers the freedom of association contained in the Code for Sustainable Plantation Management About

Social Policy Point 5 (Number Policy 724/TQEM-SPMS/09) page 13 was ratified on 1 April 2010 states that "The company is

expected to respect the rights of all employees to form and join unions in the community of their choice and negotiate together".

Available the Unit Management Structure Federation of Agriculture and Plantation Workers Union All Indonesian Workers Union

(PUK.FSPPP-SPSI) for AIP.

There are records of meetings for the preparation of Collective Labour Agreement 2012-2014 conducted on February 22-24, 2012,

attended by seven representatives of workers, application for payment of wages. Record of meeting was available at AIP.

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.

Company's policy on age requirements must be met in the reception of candidates for employment, one of the requirement is at

least 18 years old at the time of admission. And not using of underage labor (children).

Available AIP employee data document that records all employee personal identity, such as: name, date of birth, and date of start of

work. Based on the verification of documents known to the youngest employee was19 years old as upkeep worker at PSE. Based on

field observations do not find workers less than 18 years of age.

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.

Social policy is available on the Sustainable Plantation Management Guidelines Number Policy: 724/TQEM-SPMS/09, Rev.00, dated

August 27, 2010 stated all staff / employees should be treated reasonably and fairly in matters relating to recruitment, advancement,

conditions and job description, without depending on race, degree, ethnicity, gender, handicapped, sexual orientation, membership

organizations, political views, religion and age.

Based on interview carried out with workers at APE, there was no evidence of discrimination. All workers had been equally treated.

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.


ASSESSMENT REPORT


There is a policy on Sustainable Plantation Management Guidelines Number Policy: 724/TQEM-SPMS/09, Rev.00, dated August 27,

2010 page 13-point 4: Develop and implement policies to protect women workers from sexual harassment and crime and protect the

rights relating to women reproductive.

AIP has “Dharma Wanita” Committee Organizational Structure (Gender) in each estate and mill and appointed 29 persons from

various positions in the estate and mill (cashier, Housewives, Nurses, Teachers, etc.) as representative for communicating the policy

especially of sexual harassment. Based on interview with gender committee known that there were no sexual harassment happened

at AIP.

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

Not applicable. AIP does not deal with smallholders and outgrowers.

N/A

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

AIP has committed to supporting local development. Contributions for local communities describe in the social management plans

and has been implemented, example:

- Road repair and maintenance at Tualang village

- Minamas scholarship program – sime darby for high school students. Opportunity for workers children and community.

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.

AIP has Social Environment Impact Assessment (AMDAL) covers an area of 12,000 hectares.AIP has a document of Environmental

Management and Monitoring Plan (RKL / RPL) ratified by Environment Control Agency Bengkalis District Number 094/RKL-

RPL/BA/V/1996 dated May 15, 1996. Environment management and monitoring plan report has submitted regularly every six month

to environmental agency including replanting activities.

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.

The company showed Semi Detail Soil Map of PT Aneka Inti Persada 1:50,000 scales that describe in detail the dissemination of soil types and the distribution by suitability level for palm oil cultivation.

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 Company has demonstrated HCV Management Program document in the form of SOP Number 700/PAH/AIP/10 HCV Management Area dated August 1, 2010. Program details are presented in matrix form includes information Management Program, Program Description, Time Target, Responsibility, and HCV Locations. Replanting at AIP not conducted at HCV area.


ASSESSMENT REPORT


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

Replanting at AIP not conducted on marginal and fragile soils.

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.

PT. Aneka Inti Persada has no plans of new plantings on local public land. Planting operations limited to replanting program include:

Map of replanting Program 2012-2013:

1. TSE: 239.60 Ha Block E011, E012, E013, F013 Division 2

2. APE: 369.82 Ha Block D014, D015, D016, E015, E016, E017, F016, F017 Division 4

3. PSE: 197.73 Ha Block C005, C006, B006 Division 1 and 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.

Please see 7.6

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.

In the Agronomy Reference Manual document Number 110/EST-ARM/08 section 4 of the land preparation, explained that the land preparation done in a way without burning (zero burning). In the document of Sustainable Management Plantation Guidelines Number Policy 724/TQEM-SPMS/09 page 22 Section V (Planning) point 5.7.2 of the technique without burning (Zero Burning) stated that the company's supporting land clearing without burning for replanting activities. Based on field observations on Block D024, D025, E024, and E025 TSE, for the replanting area no indication of burning.

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.

AIP has a monitoring and implementation of action plans in the estate and mill activities as stated in the document RKL / RPL period

July-December 2011 and the Plantation Adviser explained the plan to reduce or mitigate negative impacts that identified, examples:

1. Environment:.

Conduct the handling of organic and inorganic waste from residential waste collected for disposal.

Efforts to prevent pollution and air emissions resulting from mill operations to the quality standard in accordance with

existing regulation (monitoring of boiler smoke, vehicle emissions)

Reducing noise levels by maintain blowdown silencer and the use of ear plugs by mill workers.

Management of water resources with conservation along the buffer zone / riparian by not allowed fertilizing and spraying

chemicals 50 feet from water resources and management of flora and fauna are threatened with extinction.

Management of IPAL / WWTP and monitoring to meet the regulatory standards the use of mill effluent (BOD, COD, etc.)


ASSESSMENT REPORT


Reduce use of chemicals for spraying weeds such as not using paraquat and planting beneficial plants such as Tunera

subulata and Antigonon leptopus (insect house nettle caterpillar predator), maintaining an barn owl.

Healthy work environment by conducting medical check-ups to all employees annually

Maintain cleanliness / sanitation in employee housing, mill and office

2. Social:

• Provide employment opportunities to the public around companies that have the competence to work in AIP.

• Provide contract procurement opportunities and transport services to local communities to improve the local economy.


ASSESSMENT REPORT


3.2. Summary of Assessment Report of Supply Chain

Clause CPO Mills Mass Balance Model 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.

1. Procedure of Teluk Siak POM, AIP refer to the Technical Guidelines for Palm Oil Mill 1, 2 and administration of the

appropriate Memorandum of Head Plantation Operation Number POD-UM-154/VII/2010 on July 26, 2010, among

others, which contain: Acceptance of FFB Number 110/POD-FAC/07, Boiling (sterilization) Number 110/POD-FAC/07,

striping Number 110/POD-FAC/07, Stirring (digesting) Number 110/POD-FAC/07, compression (pressing) Number

110/POD-FAC/07, Purification (clarification) Number 110/POD-FAC/07, No Separation of Seed and Fiber. 110/POD-

FAC/07, No Kernel station. 110/POD-FAC/07, No Palm Oil Stockpiling. 110/POD-FAC/07.Angsana Mill has SOP Product

Identification and Traceability Products in SOP Supply Chain 021/AIP-SC/01/12 passed on 2 June, 2012 which

describes the product traceability applied by mass balance models.

2. Personnel responsible for implementation of these requirements include:

- Manager of Teluk Siak POM store and maintain all documents and records of the use of all raw materials,

supporting materials used in the production process and end product quality.

- Plantation Sustainable Quality Management (PSQM) assistant checking the quality of FFB at POM and make daily

recapitulation.

- Assistant Laboratory analysis and quality testing of raw materials and products in all stages of the production

process Teluk Siak POM.

- Assistant / Senior Assistant / Manager Bulking responsible for the transportation of products from CPO and PKO

from POM to bulking station.

1.2

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

Teluk Siak POM, AIP has not documented procedures of acceptance and processing to separate certified and uncertified products, however at Teluk Siak POM processing hundred percent of FFB from AIP certified estates and does not receive any FFBs from another source.

Observation 3

2 Purchasing and goods in

2.1

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


ASSESSMENT REPORT


Teluk Siak POM, AIP has show the documentation of acceptance for FFB certified and noncertified RSPO, however at Teluk Siak POM processing hundred percent of FFB from AIP certified estates and does not receive any FFBs from another source.

2.2

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

Teluk Siak POM, AIP can recognize and claim the products are certified for a year after certificate issued to 172,093 tonnes

of CPO products and 35,107 tonnes of Palm Kernel for the period 11 October 2011 until 10 October 2012.

When the surveillance audit carried out a total of CPO and Kernel generated by the Teluk Siak POM since 11 October 2011

production of CPO 33,602 tonnes and 7,434 tonnes of Palm Kernel

During surveillance assessment for production of CPO and kernel that can be claimed as a certified product Teluk Siak POM

has not exceeded the projected, however the organization is committed to providing information to Mutuagung Lestari if

there is excess production has been projected.

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 entire recording and reporting has been stored in full by the company. Storage system in the form of soft copy

documents in the program System Application Program (SAP), Sime-Weight Programmed for weighing FFB, CPO and Palm

Kernel, FFBGS (Fresh Fruit Bunch Grading System) to determine the quality of FFB to be processed, while the documents

in hard copy form (print out) stored in the office of Teluk Siak POM.

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

Teluk Siak POM, AIP has set a minimum of retention time for 5 years and showed the recording of FFB receipt such as daily reports, data entry and FFB processing data, mill utilization, quality results and the capacity of CPO and kernel, quality oil in storage tanks, CPO and kernel data delivery (delivery Order) and Process Control Report document set 5 years.

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

palm kernel meal on a three-monthly basis. (b) All volumes of palm oil and palm kernel oil that are delivered are deducted from the material accounting system

according to conversion ratios stated by RSPO. (c) The facility can only deliver Mass Balance sales from a positive stock. However, a facility is allowed to sell short.

Teluk Siak POM, AIP has not able to show the document recording and balancing of FFB for RSPO certified palm oil

shipment and Palm Kernel for every 3 months, however all the certified CPO at Teluk Siak POM were processed from AIP

certified estates.

Observation 4

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.


ASSESSMENT REPORT


Based on the observations of the document is known the sales contract document does not explain Mass Balance model of supply chain in accordance with SOP Teluk Siak POM and does not describe the product being sold is RSPO certified products, however AIP doesn’t sell CSPO through e-trace or green palm.

Observation 5

3.5 In cases where a mill outsources activities to an independent palm kernel crush, the crush still falls under the responsibility of the mill and does not need to be separately certified. The mill has to ensure that the crush is covered through a signed and enforceable agreement.

Teluk Siak POM, AIP only made a Palm Kernel sale.

4 Sales and goods out

4.1

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

(a) The name and address of the buyer

(b) The date on which the invoice was issued

(c) A description of the product

(d) The quantity of the product delivered

(e) Reference to related transport documentation

Angsana Mini POM ensures all invoices have been issued for shipments of palm oil contain the necessary information such

as invoice Number 00239/SHE/III/2012 for CPO products are explained the name and address of the buyer, date of issued

invoice, description of the product, quantity of the product and related transport documentation, however the invoice does

not explain the type of RSPO certified product.

5 Training

5.1

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

AIP has carrying out the supply chain model training for the FFB reception of until dispatch Mill which is Supply Chain Training Courses for AIP, eluk Siak POM held on the 7 July 2012 attended by 17 AIP staff

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.

AIP does not make claims regarding the use of or support of RSPO certified oil palm products in the Sales Contract, Delivery Order and Invoice, however AIP doesn’t sell CSPO through certificate trading program.

Observation 6


ASSESSMENT REPORT


3.3. Conformity Checklist of Certificate and Logo Use

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

X or√

S1 AIP has logo and certificate approval/permit from Mutu. √

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

X or√

S1 The Company does not use the logo both on-product and off-product within the scope of PT.Aneka Inti Persada.

√

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

X or√


√

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


√


ASSESSMENT REPORT

SPO – 4006a.4 Page 31

Prepared by Mutuagung Lestari for Aneka Inti Persada – Teluk Siak POM

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

During the first surveillance assessment all the Stage-2 findings were closed and 4 (four) nonconformities were assigned against Major Compliance indicators, 3 (three) nonconformities were assigned against Minor Compliance Indicators, 6 (six) opportunities for improvement were identified. Further explanation of the non-conformities raised and corrective actions taken by the company are provided in this section. The company prepared a corrective action that was reviewed and accepted by MUTU and corrective actions taken to close all non-conformities shall be verified during next assessment.

3.4.1 Identification of Findings, Corrective Actions and Observations at Stage-2 Assessment

CAR No

Ref Std Finding Area Grade Time Limit

s Corrective Action Observation Status

Closing Date

2010.

19

Major

5.2.1

High Conservation Value Protected

species and habitat identification

results - There were documents of

HCV identification results which

showed the existence of 29 protected

species and 499.75 ha of HCV habitat

within the AIP work area.

Unfortunately, the implementation had

not involved NGO and research

institutions/colleges as required in the

HCV Identification Guide of

Indonesia.

AIP Minor S1

20/07/2012.

AIP has shown evidence of NGO

and Research Institution

involvement on HCV identification,

for example from Bogor

Agriculture Institute and Laskar

Merah Putih local NGO.

Based on document observation

there is enough evidence of

NGO and research institution

involve at HCV identification at

AIP

Closed

20/07/

2012

2010.

26

Major

5.1.2

Environment and social impact

management and monitoring paln

(RKL/RPL) report.

AIP has shown the periodical

RKL/RPL Implementation Reports

(per semester), which were the

AIP Minor

S1

18/07/2012.

AIP has carried out the evaluation

regarding RKL/RPL reporting

mechanism which contain in

report procedure Policy Number

730/PSQM dated 20 December

Evidence given regarding

environment reporting

mechanism and submission

have accepted.

Closed

18/07/

2012


ASSESSMENT REPORT

SPO – 4006a.4 Page 32


CAR No



Closing Date

reports for period II in July-December

2008, period II July-December 2009,

and period I January-June 2010,

however there was not enough

evidence that the reports had been

delivered continuously and timely to

the authorized institution.

2011 and evidence of RKL/RPL

reported to related institution on

time manner.

2010.

28

Minor

5.2.2

Trained personnel for HCV

management.

The company has appointed a

particular workers to take charge of

the HCV management plans in each

state, for instance:

(1) TSE: Syafrijal Nasution - TSE

Plant Orderly Officer through the

Appointment Letter

96A/TSE/VIII//2010/S dated 1 August

2010;

(2) PSE : Darmawan - PSE Plant

Orderly Officer through Appointment

Letter 40/PSE/IX/S, however, there

was not enough evidence of an

adequate training for their respective

posts. The company has provided a

training program for Forest and

Fauna Conservation in January 2011

as a countermeasure.

TSE

and

PSE

Minor

S1

18/07/2012.

AIP has carried out training to

HCV officer on 24 February 2011

on behalf Suwarno (APE),

Darmawan (PSE) dan Syafrijal

Nasution (TSE).

Evidence of trained HCV officer

has accepted.

Closed

18/07/

2012


ASSESSMENT REPORT

SPO – 4006a.4 Page 33


CAR No



Closing Date

2010.

29

Major

4.6.4

Waste treatment to avoid pollution.

Hazardous waste and agrochemicals

contamination direct dumping to the

soil was still found, for instance: at the

TSE spraying house (in form of

chemical spraying equipment)

TSE Minor S-1 19/07/2012.

Based on field check to Spraying

house at TSE found that

management of waste water from

spraying equipment washing

activity has been put in

containment and use for spraying

activities.

Evidence from field observation

has closed the finding.

Closed 19/07/

2012

2010.

30

Minor

6.1.3

Social Impact Management Report - The company has a social impact report within the periodical RKL/RPL Execution Report (per semester), e.g. concerning community unrest. In the report, it is stated that the social impact management has succeeded; However, the statement was not supported by data with clear parameters.

Estate

and

POM

Minor

S1

18/07/2012.

AIP has shown evidence of

community unrest management

with measureable parameters, for

example numbers of AIP

employee’s from community

around the AIP plantations and

there was no complaint record

found from the community

complaint book.

Records and data of unrest

management have closed the

finding.

Closed

18/07/

2012

2010.

31

Minor

6.5.1

Clean water facility for plantation workers - There were conditions where the water sources for the needs of employee housing in Division III and IV APE have not fulfill the health requirements. The water sources for bathing and other housing needs were distributed to the houses without any pre-processing. The drinking water sources, in forms of dug wells, were made without any

Division

III, IV

APE

housing

comple

x

Minor S1

20/07/2012 AIP has shows Water Sample Test Result Report APE housing complex on 31 July 2012 in the accredited laboratory , that the parameters tested in accordance with regulation on drinking water quality requirements. AIP has planned for the construction of Water Treatment Plant at APE and shows the agreement with

Based on evidence given it is considered the finding on clean water facility project is closed with observations.

Closed

With

Observa

tions

20/08/

2012


ASSESSMENT REPORT

SPO – 4006a.4 Page 34


CAR No



Closing Date

protection so that the water is prone to waste contamination. The company had composed water treatment installation program set to be executed in the budget year of 2010-2011.

contractor. The project planned completed in February 2013. .


ASSESSMENT REPORT

SPO – 4006a.4 Page 35


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

CAR

No Ref Std Finding Area Grade

Time

Limits Corrective Action Observation Status

Closing

Date

2012.

01

Major

2.1.1

Compliance of regulations and

laws.

AIP has not fully complied with

applicable laws, such as:

a. Hazardous waste storage

realisation has not reported to

related institution. It was not

accordance with Environment

Minister Decree Number 260

year 2009 on permit of

hazardous waste storage which

stated Hazardous waste storage

realisation has to report every

three month to related institution

(district environment body).

b. Fuel tank at TSE has not placed

with hazardous symbols; it was

not accordance with Government

regulation Number 74 year 2001

and Environment Minister Decree

Number 3 year 2008 on

hazardous symbol and label.

c. AIP has not reported the waste

water used to ground every three

month to related institution

accordance with Government

POM

dan

Estate

Major 20/09/

2012

31/07/2012.

1. AIP has shown evidence of

hazardous waste april to june

2012 period reported to

environment agency on 21

July 2012


Land Application monitoring

first semester reported to

environment agency on 21

July 2012

2/09/2012.

1. AIP has shown evidence

improvement of hazardous

symbols and label fulfilment

at TSE fuel tank accordance

with regulation (record of

evidence are available).

18/09/2012.


Teluk Siak POM wheel loader

operator has conducted the

training on 3-5 August 2012

and evidence of welder

training activity to fulfilment of

welder qualification.

Based on observation of

evidences given, AIP has shown

compliance of regulation and

laws.

Closed

with

observ

ation

18/09/

2012


ASSESSMENT REPORT

SPO – 4006a.4 Page 36


CAR


Time


Closing

Date

regulation number 82 year 2001.

d. Wheel loader operator at Teluk

Siak POM has not have operator

license accordance with Labour

Minister Regulation Number 9

year 2010 on lifting operator

regulation.

e. Welder at Teluk Siak POM has

not been able to show evidence

of welder qualification

accordance with Labour Minister

Regulation Number 2 year 1982

on welder qualification in

workplace.

2012.

02

Major

4.7.1

Occupational health and safety

implementation.

Based on field observation found that:

1. Contractor worker at block D-16

APE housing complex

development do not use PPE

accordance to company

hazardous identification.

2. Contractor worker at Teluk Siak

POM do not use appropriate PPE

(helmet, gloves).

Teluk

Siak

POM

and

APE

Major 20/09/

2012

31/08/2012.

AIP has shown evidence of PPE

awareness socialization and

record of PPE fulfilment to

contractor workers at Teluk Siak

POM on 25 July 2012 and at TSE

housing complex on 30 July 2012.

Based on observations of the

improvement given, the audit

team considers of AIP

implementation on safety and

health practice policies to

workers and contractors will be

verified further during the next

surveillance.

Closed

With

observ

ation

31/08/20

12

2012.

03

Minor

4.7.2

High risk workers regular health

check.

Special health check (audiometric

Mill Minor S2


ASSESSMENT REPORT

SPO – 4006a.4 Page 37


CAR


Time


Closing

Date

test) for operators work in areas with

high noise in Teluk Siak POM has not

been done.

2012.

04

Minor

5.2.1

Protected species, publications

and socialization.

There was no evidence that AIP has

carried out the protection species

socialization to community around

AIP plantation which affected by

plantation operations.

Commu

nity

around

AIP

plantati

on

Minor S2

2012.

05

Major

5.3.2

Hazardous waste management.

Based on field check found that:

1. Contamination of diesel fuel and

used oil directly to ground (soil)

at storage reservoir and there

was no oil trap at division IV APE

diesel fuel storage.

2. Diesel fuel tank at TSE and APE

found diesel fuel spill directly to

ground (soil).

Division

IV APE

and

TSE

diesel

fuel

storage

.

Major

20/09/

2012

11/09/2012.

AIP has shown improvement on

hazardous waste management:

1. Oil trap has been made at

division IV APE diesel fuel

storage to prevent direct

contamination oil and diesel

fuel spills into the ground.

2. Extending the water pump

house at division IV APE to

diesel fuel and oil for water

machine operation can be

well placed.

3. Spill reservoir of diesel fuel

has been made and floor

concrete with the cement at

TSE and APEdiesel fuel

storage tank for spills do not

Based on evidence given by AIP

the management of hazardous

material waste will be further

verified on next surveillance

(observations).

Closed

with

observ

ations

11/09/

2012


ASSESSMENT REPORT

SPO – 4006a.4 Page 38


CAR


Time


Closing

Date

cause contamination directly

into the ground.

2012.

06

Minor

6.1.1

Social impact management and

monitoring plan with community

participation on a regular basis.

Not enough evidence of the local

community’s involvement and

participation on directly affected by

AIP operations in the preparation of

RKL / RPL. Based on the interviews

with the villagers around AIP

plantation no evidence that

involvement between the AIP and the

community around AIP has been held

in the management and monitoring of

social impacts.

AIP Minor S2

2012.

07

Major

6.2.1

Procedures and records of

communication and consultation

with the community.

AIP not able to show sufficient

evidence that the socialization and

consultation process procedure has

been carried out and attended by

interested parties.

TSE Major 20/09/

2012

19/09/2012.

AIP has shows records of

socialization on communication

and consultation to stakeholders

conducted on 17 September 2012

attended by 17 stakeholders

representative (workers, villagers,

village head)

Based on evidence given,

socialization of communication

and consultation procedure has

carried out by AIP.

Closed 19/09/

2012


ASSESSMENT REPORT

SPO – 4006a.4 Page 39


3.4.3 Opportunity for Improvement (observations)

No Ref Std Descriptions

1 Major 1.1 Administration of all kinds and types of incoming mail based has not all been orderly manages to its interest.

2 Major 2.2.1 AIP has shows process of land use permit (HGU) area of 421.313 Ha to national land agency on 5 November 2009 document number 162/AIP/UM/PSD/XI/09

the evidence progress given will observe on next surveillance assessment

3 S.C 1.2 Teluk Siak POM processed FFB from all certified estates (AIP own manage estate) and not receiving from other source, however Teluk Siak POM doesn’t have

documented procedures for receiving and processing certified and non-certified FFBs.

4 SC. 3.3 Teluk Siak POM processed FFB from all certified estates (AIP own manage estate) and not receiving from other source, however Teluk Siak POM has not

been able to show the document of FFB recording and balancing for shipment of RSPO certified palm oil and Palm Kernel for 3 month basis

5 S.C 3.5 Sales contract document does not explain Mass Balance model of supply chain in accordance with SOP Teluk Siak POM and does not describe the product

being sold is RSPO certified products, however AIP doesn’t sell CSPO through certificate trading program.

6 S.C 6.1 Teluk Siak POM have not been able to show the use of claims to support the RSPO certified palm oil according to the RSPO Guidelines for Communication

and Claims, which are listed in the Sales Contract, Delivery Order and Invoice, however AIP doesn’t sell CSPO through certificate trading program.

3.4.4 Noteworthy Positive Components

No Ref Std Descriptions

6.11 AIP carried out the community development program to high school student around the plantation to continue the education through Minamas Plantation scholarship every year.


ASSESSMENT REPORT

SPO – 4006a.4 Page 40


3.5 Summary of Arising Issues from Public, Management and Auditor Response

Public Issues (Institution/ NGO/Community)

Management Responses Auditor Responses

1. Harvesting worker (Bapak Anal) Lack of decent housing facilities (sanitation)

AIP started the construction of permanent housing with better housing facilities (196 houses started to build on 2012).

Based on observation AIP has contract agreement with contractor and planned to build 27 G1 type and 196 G2 type of housing.

2. AIP worker union (Mr. Panjaitan) AIP gives workers the freedom to join worker unions and facilitate the worker to resolve the worker complaint through the union.

The company does provide the freedom of workers to organize and settle grievances through union employees.

AIP has policy gives workers freedom to join worker union (Policy 724/TQEM-SPMS/09) respect the rights of all employees to form and join trade unions in the community of their choice and negotiate together".


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:

Head of PSQM

Mutuagung Lestari

Minamas Plantation

Lead Auditor

Mohamad Pirabaharan

Octo HPN Nainggolan

20/09/2012

20/09/2012


ASSESSMENT REPORT


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

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

Date of Contact

1 Tualang Village Head Tualang village - - -

2 Harvesting worker Aneka Persada Esatate - - -

3 Panjaitan AIP Worker Union - - -

4 Boiler operator Teluk Siak POM - - -

5 Welder Teluk Siak POM - - -

6 Loader operator Teluk Siak POM - - -

7 District Labour Agency Bangkinang, Kampar District - - -

8 District Environment AGency Bangkinang, Kampar DIstrict - - -

9 Contractor workers Aneka Persada Estate - - -

10 Clinic nurse Aneka Persada Estate - - -


ASSESSMENT REPORT


Appendix 2. Assessment Program

DATE 16-20 July 2012

TIME PROCESSES / CLAUSES TO BE AUDITED

ACTUAL

Monday, 16.July.2012 06.30 - 08.30 09.00 - 11.00 11.30 - 12.00

14.00 – 17.00

Travelling from Jakarta to Pekanbaru Travelling from Pekanbaru to Site Opening Meeting at Estate Office Document Observations, in e.g.

Documentation review e.g. Commitment to transparency (1.1; 1.2)

Compliance with applicable laws and regulations (2.1; 2.2; 2.3)

Commitment to long-term economic and financial viability (3.1)

Tuesday 17.July.2012 08.00 - 12.00

14.00 – 17.00

Document Observations, in e.g. Responsible development of new plantings (7.2; 7.3; 7.4) Responsible development of new plantings (7.1; 7.3; 7.5; 7.7) Supply Chain verification for CPO Mill

Field observations to Estate

Wednesday 18.July.2012 08.00 - 12.00

14.00 – 17.00

Document Observations, in e.g.

Use of appropriate best practices by growers and millers (4.5; 4.6; 4.7; 4.8)

Use of appropriate best practices by growers and millers (4.1; 4.2; 4.3; 4.4; 8.1; 8.2)

Environmental responsibility and conservation of natural resources and biodiversity (5.1; 5.2; 5.3; 5.4; 5.5; 5.6)

Document Observations, in e.g. Responsible consideration of employees and of individuals and communities affected by

growers and mills (6.1; 6.2; 6.3; 6.4; 6.5) Responsible consideration of employees and of individuals and communities affected by

growers and mills (6.6; 6.7; 6.8; 6.9; 6.10; 6.11) Thursday

19.July.2012 08.00 - 12.00

15.30 – 17.30

Field observations to Village Field observations to Mill

Friday 20.July.2012 08.00 - 10.00 12.00 – 15.00

Closing Meeting Travelling to Pekanbaru


ASSESSMENT REPORT


Appendix 3. Glossary

AIP : PT. Aneka Inti Persada

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

APD / PPE : Alat Pelindungan Diri (Personal Protection Equipment)

APE : Aneka Persada Estate

ASEAN : Association of South East Asian Nations

B3 : Bahan Beracun and Berbahaya (Hazardous Material Waste)

BKSDA : Balai Konservasi Sumberdaya Alam (Natural Resources Conservation Agency)

BOD : Biological Oxygen Demand

BPN : Badan Pertanahan Nasional (National Land Agency)

BTG : Batas Tingkat Getaran (Vibration Level Standard)

CPO : Crude Palm Oil

EFB : Empty Fruit Bunch

ESH / K3 : Environment, Safety and Health

HCV : High Conservation Value (Nilai Konservasi Tinggi)

HGU : Hak Guna Usaha. (Land Use Permit)

HIRARC : Hazard Identification Risk Assessment and Risk Control

IUP : Izin Usaha Perkebunan. (Plantation Business License)

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

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

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

MRC : Minamas Research Centre

NAB : Nilai Ambang Batas (Noise Intensity)

OER : Oil Extraction Rate

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

P&C : Principle and Criteria

PHT / IPM : Pengendalian Hama Terpadu (Integrated Pest Management)

PK : Palm Kernel

PKO : Palm Kernel Oil

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

PSD : Plantation Services Departement

PSE : Pinang Sebatang Estate

PSQM : Plantation Sustainability and Quality Management

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

RSPO : Roundtable on Sustainable Palm Oil

SOP : Standart Operating Procedure

SOU : Strategic Operation Unit

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

TSE : Teluk Siak Estate

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

Documents

[ ]Stage2 - Roundtable on Sustainable Palm Oil : Subdistrict of Tualang and Kuto Gasib, District of Siak, Province of Riau Certificate Code : MUTU-RSPO/007 Date of certificate issue