ASSESSEMENT REPORT - RSPO RJP(Ramarama... · Ramarama Mill – PT RJP scope. Certificate of Company Performance Evaluation in Environmental Management (PROPER) of Riau Province with

PT MUTUAGUNG LESTARI

ASSESSEMENT REPORT

Sustainable Palm Oil Certification

Stage I [√] Stage II Surveillance Assessment Report

Company/Owner : IVOMAS TUNGGAL Name of Factory and Estate : Rama Rama POM and Rama Rama Estate (PT

Ramajaya Pramukti) Country : Indonesia Location : Tapung Sub district, Kampar District, Riau Province

Certificate Code : MUTU-RSPO/XXX Date of Certificate Issue : - Date of Expiry of Certificate : -

Assessment Date

Report Completion

Date

Auditor PT Mutuagung Lestari Checked by Approved by

ST2 04-07,12/07/2011 12/08/2011 Aryo Gustomo; Nanang

Mualib; Ibnu Satria. P; Octo H.P.N Nainggolan

Taufik Margani Tony Arifiarachman

S1

S2 S3 S4

Mutuagung Lestari • Jl Raya Bogor Km 33,5 No. 19 • Cimanggis • Depok 16953• Indonesia

Delivered to RSPO

Reviewed by RSPO

Responde by Certification Institution

Ratified by RSPO

- - - -

Telephone (+62) (21) 8740202 • Fax (+62) (21) 87740745/6 Email : [email protected] ● www.mutucertification.com

MUTU Certification • Approved by RSPO Secretary on June 2008

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ASSESSEMENT REPORT

Prepared by Mutuagung Lestari for PT Ramajaya Pramukti i

TABLE OF CONTENT

Page 1.0 SCOPE OF CERTIFICATION 1.1 National Interpretation used 3 1.2 Legal Entity Information 3 1.3 Type of Assessment 3 1.4 Location of Estate, Mill 3 1.5 Description of Supply base 4 1.6 Description of Land use 4 1.7 Cycle and Planting Year 5 1.8 Estimated Tonase of Certified Product 5 1.9 Application of Other Certifications 5 1.10 Time Bound Plan for other Management Units 5 2.0 ASSESSMENT PROCESS 2.1 Certification Body 8 2.2 Lead Auditor and Audit Team 8 2.3 Methods of Assessment, Progress, and Field Survey/Visit 8 2.4 Public Consultation and List of Stakeholders Contacted 12 2.5 Determination of Next Visits 12 3.0 ASSESSMENT FINDINGS 3.1 Summary of Findings, Corrective Action, and Observation 13 3.2 Issues that arise from the stakeholders, Company and Auditor Responses 31 4.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY 4.1 Official signature of assessment findings 37 ANNEXES 1 RSPO Certification Assessment Checklist 38 2 Supply Chain Checklist 90 3 Peer Review Report 96 4 Results of RSPO Panel Committee –RSPO Certification 97 5 List of Stakeholders contacted in RSPO Certification Process 98 6 Glossary 99 Figure 1 Map of Location PT Ramajaya Pramukti 1 2 Location Map of PT Ramajaya Pramukti (Rama Rama Estate) 2


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SPO – 4006a Prepared by Mutuagung Lestari for Ramajaya Pramukti Page 1 of 100

Figure 1. Map of Location PT Ramajaya Pramukti


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Figure 2. Operation Map of PT Ramajaya Pramukti (Rama Rama Estate)


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1.0 SCOPE OF CERTIFICATION 1.1 National Interpretation used National Interpretation, Principles and Criteria (P&C) of RSPO

for Sustainable Palm Oil Production, Republic of Indonesia - RSPO INA-NIWG, May 2008 and supply chain requirement for CPO Mill

1.2 Legal Entity Information 1.2.1 Company Name IVO MAS TUNGGAL 1.2.2 Contact person Ismu Zulfikar 1.2.3 Company Address Plaza BII Tower 2, 30th Floor

JL. MH Thamrin No 51 Kav 22 Jakarta 10350 Indonesia 1.2.4 Telephone (+62-21) 318 1388 1.2.5 Fax (+62-21) 318 1389 1.2.6 E-mail [email protected] 1.2.7 Website www.smart-tbk.com 1.2.8 Company Status Private 1.2.9 Management Representative who completed the

application for certification Ismu Zulfikar (Head of Environmental Departement)

1.2.10 Date of Being Registered as RSPO member 17 June 2008 1.2.11 Number of employee 647 Persons 1.2.12 Contractor/Community/other workers - Group 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. RAMAJAYA PRAMUKTI

1.3.4 Number of management unit 1 (one) unit of Rama Rama Palm Oil Mill whose FFB is supplied from Rama Rama Estate unit

1.4 Location of Estate, Mill and Hectare Statement 1.4.1 Estate Location Name of Estate Location GPS Coordinate

Latitude Longitude Rama Rama Estate Tapung Sub district, Kampar District, Riau

Province 00 10133' 06” N 0 06' 49” E

1.4.2 Location of Mill Name of Mill Location GPS Coordinate

Latitude Longitude Rama Rama Mill Tapung Sub district, Kampar District, Riau

Province 00 10132' 00” N 0 04' 34” E

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1.4.3 Map Figure 1 1.4.4 Village/Sub-district/District/Province Petapahan Village, Tapung Sub district, Kampar District, Riau

Province 1.4.5 Country Indonesia 1.4.6 Region South East Asia 1.4.7 Land Ownership Status State: 4,087.16 Ha - Rama Rama Estate Based on HGU No. 03 of 1994 2,191.49 Ha

- Rama Rama Estate Based on HGU No. 149 of 1997 1,844.07 Ha - Rama Rama Estate Based on HGU No. 05 of 1998 51.60 Ha

1.5 Description of Supply Base 1.5.1 Estate (s)

Estate(s) Total Area (Ha)

Planted Area (Ha)

FFB (ton/year)

Yield (ton/year)

% Supplied

to Mill Rama Rama Estate 4,082.11 3,879.40 105,556 27.21 40.15

Sumber : Estate Production Data year 2009/2010

1.5.2 Smallholder(s) and others

Smallholder(s) Number of Member(s)

Location Total Area (Ha)

FFB (ton/year)

% Supplied to Mill

Sungai Plasma (PIR-Trans) 2,792 Kecamatan Tapung Hilir 5,585 48,590 18.48

Amartajaya Plasma (PIR-Trans)

2,213 Kecamatan Tapung Raya 4,426 108,781.55 41.37

Source: Plasma Data of Ramarama Mill

1.5.3 Description of Mill

Mill Capacity (tonnes/ hour)

CPO (ton) PK (ton) PKO (ton) Out put OER Out put OER Out put OER

Rama Rama Mill 60 55,820 21.23 13,672 5.2 - - Source: FFB, CPO, PK Projection Next Five Year (2012-2016) at Rama Rama Mill.

1.6 Description of Land use 1.6.1 Total area 4,082.11 Ha 1.6.2 Mature Area 3,876.40 Ha 1.6.3 Immature area - Ha 1.6.4 Mill 49.30 Ha 1.6.6 Infrastructure Area (nurseries, run way, road, etc ) 151.32 Ha 1.6.7 LC program plan - Ha 1.6.8 Occupation / reserved area - Ha


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1.6.9 High Conservation Value (swamps, rivers, ditches) 189.36 Ha 1.6.10 Product Type: FFB/CPO/PKO/PK

1.7 Cycle and Planting Year 1.7.1 Age profile of planted palm

RRME (Rama Rama Estate) Planting Year Size (hectares) Age (year)

1991 643.06 20 1992 1,551.81 19 1993 47.02 18 1996 1,206.31 15 1997 383.07 14

2002 45.13 9 TOTAL 3,876.40

1.7.2 Area for peplanting after 2005 - Ha 1.7.3 New planting area after 2005 a. Program plan Ha

b. Realization up to 2011 Ha 1.7.4 Harvest cycle 7 Days 1.8 Estimated Tonase of Certified Product 1.8.1 CPO Production Recovery 22.0 % 1.8.2 PK Production Recovery 5.2 % 1.8.3 FFB 101,854 Ton/Year 1.8.4 Crude Palm Oil 22,408 Ton/ Year 1.8.5 Palm Kernel 5,347 Ton/ Year

Source: FFB, CPO, PK Projection Next Five Year (2012-2016) only for

Rama Rama Estate and Mill. 1.9 Application of Other Certifications 1.9.1 ISO 9001:2008/ISO 14001: 2004 None 1.9.2 OHSAS 18001:2007 None 1.9.3 HACCP None

1.9.4 Others

Occupational Health and Safety Management System based on decree of Transmigration and Labor Minister of Republic Indonesia (Kep.83/MEN/V/2010) dated 4 May 2010, for Ramarama Mill – PT RJP scope.

Certificate of Company Performance Evaluation in Environmental Management (PROPER) of Riau Province with “BLUE” rank.

1.10 Time bound plan for other Management Units

1.10.1 Time bound plan for other management units of IVOMAS TUNGGAL. IVO MAS TUNGGAL has committed to make time bound plan for all the other management units in implementing the

P&C standard or to gain the RSPO certificate. The auditor team had put this plan into consideration in accordance with the RSPO Certification System for Partial Certification. The development and follow up of the plan will be verified and reported in the routine annual visits.


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GROUP Mill Company

Region Mill Estate (FFB Supplier) Time Bound Plan

Complete Audit

Remark (Estate Entity)

IMT PT. IVOMAS TUNGGAL

SIAK-RIAU SSMM Samsam Mill

SSME Samsam Estate

2009 2010 PT. IVOMAS TUNGGAL

KNDE Kandista Estate


PLPE Palapa Estate 2009 2010 PT. IVOMAS TUNGGAL


SIAK-RIAU LIBM Libo Mill LIBE Libo Estate 2009 2010 PT. IVOMAS TUNGGAL

NGLE Nenggala Estate


SRKE Sungai Rokan Estate



SIAK-RIAU UTJM Ujung Tanjung Mill

UTNE Ujung Tanjung Estate


STPA Sungai Tapung Setate

2011 Smallholder

IMT PT. BUANA WIRA LESTARI MAS

KAMPAR- RIAU

NSAM

Nagasakti Mill

NMAE Nagamas Estate

2010 2011 PT. BUANA WIRA LESTARI MAS

NSAE Nagasakti Estate

2010

2011 PT. BUANA WIRA LESTARI MAS

RBKE Rama Bakti 2010 2011 PT. RAMAJAYA PRAMUKTI


KAMPAR- RIAU

KJNM Kijang Mill KJGE Kijang Mas Inti Estate

2010 2011 PT. BUANA WIRA LESTARI MAS

KJNP Kijang Kencana Scheme smallholder

2011 Smallholder

IMT PT. RAMAJAYA PRAMUKTI

KAMPAR- RIAU

RRMM Rama Rama Mill

RRME Rama Rama Estate

2010 2011 PT. RAMAJAYA PRAMUKTI

AYJP Amartajaya Scheme smallholder

2011 Smallholder


INDRAGIRI-RIAU

IDSM Indra Sakti Mill

IDLE Indra Lestari Estate

2011 PT. MEGANUSA INTI SAWIT

IDSE Indra Sakti Estate

2011 PT. MEGANUSA INTI SAWIT

INDA Indragiri Scheme smallholder

2011 Smallholder

IDSA Indrasakti Scheme smallholder

2011 Smallholder


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IMT PT. BUMIPALMA LESTARI PERSADA

INDRAGIRI-RIAU

BPLM Bumipalma Mill

BPLE Bumi Lestari Estate

2012 PT. BUMIPALMA LESTARI PERSADA

BPME Bumi Palma Estate


BSNE Bumi Sentosa Estate



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2.0 ASSESSMENT PROCESS 2.1 Certification Body PT Mutuagung Lestari Jl. Raya Bogor Km 33,5 No. 19

Cimanggis - Depok 16953 Indonesia Telp. +62-21-8740202 Fax +62-21-87740745/46 Website: www.mutucertification.com Email : [email protected] 2.2 Lead Auditor and Audit Team 2.2.1 Audit Team Assessment/Audit Team consists of: ST2 1) Aryo Gustomo (Lead Auditor). A Bachelor of Agricultural Science majoring in Agronomy, specialist of Palm Oil

Plantation. He has worked in one of palm oil seed producers in Malaysia as a Plant Breeder / Agronomist. He also has worked as a Field Assistant in one of oil palm plantation companies in Indonesia. Trainings he has attended are among other: Lead Auditor 14001, Identification and Management of HCV Area, Awareness ISO 9001, and Lead Auditor RSPO. Currently he has been working with an independent certification agency and has been involved in a number of assessment activities in the framework of RSPO certification as an auditor, including 14 times pre-assessment, 1 trial audit RSPO scheme smallholder, and 6 times stage-2. In this Stage-2 audit process, he assessed legal, environmental, best practices of agronomy, and OHS management aspects.

2) Nanang Mualib (Auditor). Bachelor of Forestry Majoring in Forest Products Technology, Forestry Faculty of Bogor Institute of Agriculture (IPB). He has work experience in forestry companies (HPH) since 2000 to 2004 as technical assistance in application of Sustainable Forest Management; and a joint program between the Forestry Faculty of IPB and WWF-Indonesia since December 2006 to present. His professional experiences are, among other: HCV social study in monitoring the implementation of Sustainable Forest Management, and had been involved in the identification of HCV in the three oil palm plantation companies in Indonesia. Currently he works as a professional consultant and assessor HCV. In this Stage-2 activity, he assessed social, legal, HCV management, and employment aspects.

3) Ibnu Satria Prabudi (Auditor). Bachelor of Agriculture Majoring in Agro-technology, Agriculture Faculty of Instiper Yogyakarta. Currently he has been working with an independent certification agency as an auditor. Training he has followed are: Lead Auditor RSPO. He has followed several audit activities related to certification system of sustainable palm oil (RSPO certification) as observer and Auditor undertrained. In this Stage-2 activity he assessed best practices of agronomy and employment aspects.

4) Octo Hombar P. N Nainggolan (Auditor). A Bachelor of Agriculture Majoring in Socio-Economics of Agriculture (Agribusiness) of Udayana University in Bali. He has worked since 2004 to 2011 as a Field Staff in an Indonesian private palm oil plantation company. Training he had followed are: Training of Natural Resources and Biodiversity Conservation in supporting HCV, and Basic Plantation Management Program and he has been involved in a number of audit activities relevant to certification system of sustainable palm oil plantation as observer. Currently he has been working with an independent certification agency as auditor. In this Stage-2 activity, he was accompanied by the lead auditor to assess employment aspects.

Curriculum Vitae (CV) of the members of the Assessment Team is available at PT Mutuagung Lestari Office. 2.3 Methods of Assessment, Progress, and Field Survey/Visit 2.3.1 Assessment Date ST1 25-29 October 2010 This activity was done at the same time with the operation activity of PT Ramajaya Pramukti

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ST 2 13-16 July 2011 2.3.2 Estimated person-days for the implementation of the assessment ST1 Number of involved auditors: 4 persons Number of days for pre assessment activities (stage-1) on site: 4 days Number of person-days for stage-1 activity on site: 16 days ST 2 Number of involved auditor: 4 persons Number of days for Stage-2 activity on site: 6 days Number of person-days for Stage-2 activity on site : 24 days 2.3.3 Detail of Audit Process

ST1 Stage-1 (pre-assessment) process is aimed at measuring the extent of readiness of the company in implementing the

RSPO standards by assessing individual understanding on the RSPO standards process, location condition, methodology of process to certification aspects, identifying stakeholders, evaluating internal audits and management system in planning and performance of the implementation of the RSPO standards, and assessing the company's readiness in facing the Stage-2 audit. The scope of assessment in the stage-1 activity was Rama Rama Mill, which obtains FFB from Rama Rama Estate unit and from outside the nucleus (Scheme smallholder) estate so that the assessment was carried out by sampling. The assessment was conducted by measuring the adequacy of implementation that has been done by the company to comply with the requirements of the National Interpretation of the Republic of Indonesia for the Roundtable on Sustainable Palm Oil Principles and Criteria (RSPO INA-NIWG, May 2008). The assessment was conducted in three methods, i.e: (1) review of documents, to assess the adequacy of the type and substance of the required documents, (2) interview with management unit’s personnel, to obtain more detailed information and to cross check; and (3) field visit, to assess the adequacy of the actual implementation in the field. A number of improvement recommendations resulted from the Stage-1 activities were submitted by MAL auditors to the company management, and the improvement results would be taken as verification for the second assessment stage (Stage-2). All information obtained were recorded in the Checklist of PT Mutuagung Lestari and become the main attachment to the Assessment Report. In detail, the first stage assessment process is as follows:

October 25, 2010. In the morning, the audit team went from Jakarta to Pekanbaru and then to the job site (Kampar District). Upon arrival in the job site, the audit team held an Opening meeting in Mess of Nagamas Estate of PT Buana Wira Lestari Mas attended by DOM/VPM 5, PC Mill Kampar Region, RC Region Kampar, ENDV-Head Office, AVP Finance, Naga Sakti Estate Manager, Nagamas Estate Manager, Kijang Estate Manager, Kijang Mill Manager, and a number of related personnel. This Opening Meeting was held at the same time with the audit process of PT.Buana Wiralestari Mas. After the opening meeting, the audit team conducted document review of PT Buana Wiralestari Mas. The auditors focused its review on the corporate documents concerning the legality, environmental management, social management, and best practices aspects.

October 26, 2010. Audit team conducted document review of PT Ramajaya Pramukti. October 27, 2010. The audit team conducted field visit to locations that have been planned in advance. Auditors are

divided into two teams: Team I (Nanang and Ibnu) visited the protected area (HCV), boundary areas, and some villages and conducted interviews with several local people. Team II (Aryo and Muardi) visited the estate’s workshops, warehouses, dams, fertilizing, spraying and harvesting activities, and the mill.


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October 28, 2010. Auditor team conducted field visit to PT Ramajaya Pramukti. After conducting the field visit, in the afternoon the team went to Pekanbaru.

October 29, 2010. In the morning, the audit team held a Closing Meeting Sinar Mas Representative Office Pekanbaru attended by PC Mill of Kampar Region, RC of Kampar Region, ENDV-Head Office, AVP Finance, Naga Sakti Estate Manager, Naga Mas Estate Manager, Kijang Estate Manager, Nagasakti Mill Manager, Kijang Mill Manager, and a number of related personnel. This Closing Meeting was held at the same time with the audit process of PT Buana Wiralestari Mas. After that, in the afternoon the auditor team went back to Jakarta.

ST 2 Stage-2 is aimed at measuring the company’s performance in impelementing the Principles and Standard Criteria of

Sustainable Palm Oil Plantation (RSPO P&C) and assessing how far the performance the company has achieved toward the findings of the stage-1 audit process. The scope of assessment in the stage-2 was changed from the scope of assessment at the stage-1 activity into Rama Rama Mill, which obtains FFB from Rama Rama Estate. The assessment was conducted by measuring the adequacy of implementation that has been done by the company to comply with the requirements of the National Interpretation of the Republic of Indonesia for the Roundtable on Sustainable Palm Oil Principles and Criteria (RSPO INA-NIWG, May 2008). The assessment was conducted in three methods, i.e: (1) review of documents, to assess the adequacy of the type and substance of the required documents, (2) interview with management unit’s personnel, to obtain more detailed information and to cross check; and (3) field visit, to assess the adequacy of the actual implementation in the field. All information obtained were recorded in the Checklist of PT Mutuagung Lestari and become the main attachment to the Assessment Report. In detail, the first stage assessment process is as follows:

July 4, 2011. The audit team went to Riau. July 5, 2011. The audit team conducted an audit in PT BWL, a subsidiary company, which is still within the holding

IVOMAS TUNGGAL and is located adjacent to the PT RJP. July 6, 2011. On the morning team of auditors conduct public consultations with stakeholders at the provincial level to

village level, NGOs (Non Governmental Company) locally, etc. are done in the training center Sinarmas, Sei Rokan Estate. And in the afternoon the team verified the results related to public consultation.

7 to 12 July 2011. The team conducted an audit on PT BWL which is a subsidiary that is still within 1 (one) holding IVOMAS TUNGGAL and is located adjacent to the PT RJP.

July 13, 2011. The audit team went to the location and in the afternoon the team held an opening meeting in Naga Mas Estate’s Mess attended by: ENDV-Head office Jakarta), PC Kampar Region, RC Kampar Plasma, RC Kampar Region, Naga Mas Estate Manager, Naga Sakti Estate Manager, Ramabakti Estate Manager, and some personnel representing each department. After the opening meeting the audit team conducted a review of documents concerning social, production and environmental management. The team was divided into three namely:

Team I (Aryo and Octo - Assessment of legal, environmental, employment and OHS aspects): assessment of land exploitation, environmental management, water and soil conservation measures, hazardous waste management, employment system and OHS implementation. Team II (Ibnu - Assessment of agricultural best practices): assessment related to implementation of integrated pest management, use and control of chemicals, fertilization, crop care and harvesting activities. Tim III (Nanang – assessment of Legal and Social aspects): assessment of land tenure / ownership, conflict management, implementation of CSR (Corporate Social Responsibility) program, and public complaint handling.

July 14, 2011. The audit team was still continued the review of documents concerning social, production and environmental management, and planned the field visits for the next day.


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July 15, 2011. The audit team conducted field visit. The auditors were divided into 3 teams. Team I visited Rama Rama palm oil mill (POM). Team II visited the Rama Rama Estate, and Team III visited villages around the estate. Locations visited by the audit team are presented at point 2.3.4.

July 16 2011.The audit team prepared CAR and held a closing meeting which was attended by ENDV-Head Office Jakarta; PC Regional Kampar; RC Kampar Scheme smallholder; RC Regional Kampar; RSPO PSM V Coordinator; Rama Rama Estate Manager; Rama Rama Mill Manager; Estate Manager Naga Mas; Naga Sakti Estate Manager; Ramabakti Estate Manager; and a number of personnel representing their respective department.

2.3.4 Assessed Location Samples

ST1 The sampling locations which selected by Audit Team based on :

1. The number of locations is determined by the formula 0.8 √y., e.g: 12 villages around PT RJP, then the number of villages visited based on such formula is 3-4 villages.

2. The selected sites represent each of working areas. 3. The consideration of issues arising from the document review that are fundamental and crucial. In detail, the locations visited are as follows:

Location 1. Rama Rama Mill. Observations related to the TBS management, water resource factories, warehouses HAZARDOUS waste, workshops, warehouses chemicals, WWTP, the implementation of OHS, etc..

Location 2. Rama Rama Estate Office. Conducting interviews with the commission chairman PT Ramajaya Pramukti gender.

Location 3. Makmur Lestari Village Petapahan and KUD. Conducting interviews with farmers associated mechanisms of cooperation between the company and the Scheme smallholder or local farmers.

Location 4. BPN peg 21 and 22. Looking at the maintenance treatment area boundary HGU PT PAL Ramajaya Pramukti.

Location 5. Area of HCV. Observation of the progress the installation of sign boards HCV areas. Location 6. Central Clinic. Observations related to employee health screening / operator on certain units as well as

HAZARDOUS waste treatment clinic. Location 7. Employee Housing. Verification related to environmental sanitation, shelter employees such as: water

resources and landfills. Location 8. Facilities and Public Infrastructure. Visiting public facilities and infrastructure such as schools, daycare

centers, and places of worship and verify the completeness associated with supporting. ST 2 The sampling locations which selected by Audit Team based on :

1. The number of locations is determined by the formula 0.8 √y., e.g: 12 villages around PT RJP, then the number of villages visited based on such formula is 3-4 villages.

2. The selected sites represent each of working areas. 3. The consideration of issues arising from the document review that are fundamental and crucial. In detail, the locations visited are as follows:

Location 1 - Village Petapahan. Conduct observations and interviews with village officials and community leaders associated processes involve land acquisition compensation of village and villagers, the realization of CSR programs, socialization SOP and environmental issues that exist in society.

Location 2 - Sei Lembu Makmur Village. Conduct observations and interviews with village officials and community leaders associated the realization of CSR programs, socialization SOPs, training of farmers and environmental issues that exist in society.

Location 3 - KUD Mekar Jaya,Sei Lembu Makmur Village. Related to price transparency verify TBS, the management of farmers, training of farmers, transparency grading TBS, KUD cooperation with the Company and the environmental issues that exist in the Scheme smallholder.

Location 4 – Boundary pole HGU No. 10 - 15 (HGU No. 149 of 2001) Rama Rama Estate. Verification related to the border area with land HGU well-maintained community.

Location 5 - Line Observations of Animals. An observation path of protected animals (Tiger cekakak shrub roots and birds), HCV 1.2


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Location 6 - Management of Riparian. Observations related to the management demarcation Clear Water River Location 7 - Block D 26 Division 5 Rama Rama Estate. Observations related to the management area with a certain

slope. Location 8 - Block C 7 Division 2 Rama Rama Estate. Conducting interviews with officials associated with the harvest

employment for protection of employees and facility that the company provides to employees. Location 9 - Block C 7, D Block 10 and Block D 12 Rama Rama Estate. Observations related to the implementation of

IPM, application blanks and slender spray activities. Location 10 - Public Facilities. Observations related to the provision of public facilities and infrastructure for employees

such as: a house of worship, residences, schools, clinics, clean water and sports facilities etc.. Location 11 - Fertilizer Warehouse, Chemicals Warehouse, Workshop, HAZARDOUS Warehouse, Solar Tank of

Rama Rama Estate. Observations related to the management of agrochemicals, HAZARDOUS waste management, environmental pollution preventive measures, and preparedness companys in handling emergencies etc..

Location 12 - Rama Rama Mill. Conducting observations associated with the processing of FFB, the management of water resources for factories, warehouses HAZARDOUS waste, workshops, warehouses chemicals, pool WWTP, land management applications, the implementation of OHS, and the application of supply chain requirements.

2.4 Public Consultation and List of Stakeholders Contacted 2.4.1 Summary of Public Consultation Process Public consultation process was carried out in two ways, namely:

1) Public announcement on the RSPO website (www.rspo.org) minimum 30 days prior to the implementation of Stage-2 audit.

2) Public consultation meeting with stakeholders held in Sei Rokan Training Centre on July 6, 2011. This meeting was conducted simultaneously to receive input on the assessment process at PT Buana Wiralestari Mas. The meeting was attended by 41 stakeholders of 65 stakeholders invited. A number of verbal inputs from stakeholders, either positive or negative issues, were received by the audit team to be taken into account in the stage-2 audit process.

2.5 Determination of Next Visits The time for the next visit will be determined after obtaining approval from the RSPO secretariat or 12 months after the

issue of the certificate.


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3.0 ASSESSMENT FINDINGS 3.1 Summary of Findings, Corrective Action, and Observation

No. Ref Std/ Indicator

Non-conformance Grade Location Requests for Corrective Actions

Time Limit Observation and Date Status Closed date

2010.01 2.1.1 The evidence of compliance with regulation – It was found that the company has not met some of the relevant regulations. Example: Regulation of No. 7 of 2007 Article 7 of the training of spraying workers in the use of restricted pesticides (Paraquat); OHS License for the tractor operators in the estate (eg in Ramabakti Estate) in accordance with the Permenaker No.9 of 2010 Article 3, 4, 5, 11, and 13 on Operators and Lifting and Transport Tools Officers.

NC Mill & Estate

Documented evidence of compliance with all relevant regulations, including, but not limited to: Permentan No.7 of 2007 Section 7; and Permenaker No.9 of 2010 Article 3, 4, 5, 11, and 13 should be provided.

Before Stage-2

In the ST2 audit process, the company has provided its spraying workers with the limited pesticide (Paraquat) spraying carried out by Pesticide Commission of Riau Plantation Office (Mr. Suratmo, SP.) on February 8, 2011 attended by pest control officers of Kijang Estate, Nagamas Estate, Ramabakti Estate, Rama Rama Estate and Nagasakti Estate. In the ST-2 audit process, the company has presented the Operator License, such as operator license No. SIO 10.6722/OPF/PNOHS/XI/10, type: heavy equipment tractor in the name of Jainal Silalahi, an operator in Rama Rama Estate.

Closed 16/07/2011

2010.02 2.1.2 The evidence of adjustment to regulation change – It was found that

CFA Mill & Estate

The company is suggested to make

Before Stage-2

There is Another Regulation and

Closed 16/07/2011


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the company has not made adjustment to changes in the regulations, for example: Giving hazardous waste symbols in accordance with PermenLH No. 3 of 2008.

adjustment to the relevant regulations in respect to its mill and estate operations.

Requirement Mechanism (SOP / CPR / PPL) issued on February 5, 2010 prepared by the Regional Controller / Production Controller and approved by the Vice President Agronomy / Vice President Mill providing the company evaluation mechanism of regulatory compliance.

2010.03 2.1.3 List of regulations - The Company already has a list of regulations associated with plantation and mill activities, but has yet to include all local regulations (Regional Regulations) are associated, for example: Riau Governor Regulation No.95 Year 2009 on the minimum wage applicable in districts or municipalities of Riau province; Governor Regulation No. 35 of 2007 on wastewater quality standards.

CFA Mill & Estate

The company should complete the list of regulations relevant to its mill and estate operations with all prevailing regulations, including regional regulations.

Before Stage-2

In the ST2 audit process, the company has provided documents related to regulatory and legal requirements of the operational activities of palm oil plantation management including regional regulations.

Closed 16/07/2011

2010.04 2.1.4 Evaluation of regulatory compliance - The company already has a documented List of Regulations and Compliance, but have yet to include the evaluation of the entire articles of the regulations for which the company has to fulfill in respect of its plantation and mill activities.

CFA Mill & Estate

The company should evaluate the article-by-article of regulations it has to comply with.

Before Stage-2

There is documented Evaluation of Company’s Compliance with the Regulations, Laws and Other Requirements that explains types of regulations evaluated a description of articles of

Closed 16/07/2011


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the regulations evaluated and implementation / documentation of the company’s compliance with such regulations, such as articles 22, 31. 34, 36, 59 of Law no. 32 of 2009 on Environmental Protection associated with the Estate Operations.

2010.05 2.2.2 Boundaries Poles - Company has a documented boundary pole maintenance plan, but based on field verification, BSN 15 boundary poles (in Rama Rama Estate) are not maintained well.

CFA Estate All boundary poles of the company’s working area should be maintained well.

Before Stage-2

Based on the field visit to the HGU Boundary Poles No. 10 - 15 (HGU No. 149 of 2001) which is the boundary area between the company estate and people land, the audit team found that such HGU boundary poles have been well maintained and clearly visible.

Closed 16/07/2011

2010.06 3.1.1 Long-term plan - Company has a long-term work plan in the form of Company Work Plan of PT Ramajaya Pramukti Period 2010 - 2017. But there is no evidence of management approval.

CFA Mill & Estate

It is suggested the long-term work plan should be approved.

Before Stage-2

The company has been able to show evidence of long-term work plan 2010-2017 which was approved by the company’s top management (CEO PSM 5).

Closed 16/07/2011


ASSESSEMENT REPORT





2010.07 3.1.2 Replanting plan - There is a replanting plan to be implemented in 2017. But documented evidence of the annual review of the replanting program is unavailable.

CFA Estate The company should present the documented evidence of annual review of its replanting plan.

Before Stage-2

While the stage-1 activity was being done, the company already had replanting plan which will be done in 2017. This replanting program plan is still a plan submission from estate management unit and has not been validated by the top management. While the stage-2 activity was being done, replanting plan was reviewed with the result of the change of the year of program 2017 revised 2016. This change of plan was the result of annual study which has been done by the company related to replanting activity. The study itself was done based on criteria of plants age, plants length and production estimation (in accordance with one of the replanting criteria in existing SOP).

Closed 16/07/2011

2010.08 4.1.2 SOP of Mill- The company already has SOP Mill in the form of SOP Palm Oil Processing Mill of PT SMART Tbk, but it does not explains product supply

CFA Mill The company is recommended to review the SOP Mill and explain the product/CPO supply

Before Stage-2

The company has established procedures in the form of SOP Supply Chain, PT Ramajaya

Closed 16/07/2011


ASSESSEMENT REPORT





chain system in the mechanism of reception of FFB until CPO delivery; it is because there are factories that receive FFB from smallholders beyond the scope of certification. Example: FFB acceptance procedure in Rama Rama Mill which receives FFB supply from the smallholders plant.

chain procedure ranging from FFB reception until CPO delivery, for mills receiving CPO supply beyond the certification scope.

Pramukti (SOP / CPR / SC), ratified on July 12, 2011. This SOP details the recording mechanism of FFB receipt (either from the nucleus or Scheme smallholder), processing, storage of CPO and palm kernel in the storage tank, and the shipping of the products (CPO and palm kernel) to Dumai Bulking station. This procedure also establishes the supply chain system that is applied based on the principle of Mass Balance.

2010.09 4.4.2 Evaluation of water quality test - The Company has provided records of the results of water quality test conducted by SMARTRI laboratory, but has not provided evidence of evaluation of the parameters tested in accordance with established quality standards.

CFA Mill & Estate

The company is recommended to evaluate the data of water quality test in term of parameters tested in accordance with the established quality standards

Before Stage-2

The company has conducted water quality test from employee housing drilled well located around the housing settlement. This water quality test was conducted on semester basis in accordance with the Permenkes No. 416 of 1990 concerning the clean water standards. Parameters tested include: odor, turbidity, temperature, color, Total

Closed 16/07/2011


ASSESSEMENT REPORT





Dissolved Solids (TDS), chemical content, and total coliform. There is the documented result of the ground water quality test conducted on May 24, 2011 by UPTD Water Quality Test Laboratory of the Health Agency of Pekanbaru City; test result shows that all parameters are in accordance with quality standards.

2010.10 4.4.3 Evaluation of BOD effluent test - The Company has provided a documented monitoring of BOD effluent, but has not provided evidence of evaluation of the parameters tested in accordance with established quality standards.

CFA Mill It is suggested to conduct evaluation of BOD monitoring data and the tested parameters in accordance with existing quality standard.

Before Stage-2

The Company has conducted liquid waste BOD test results evaluation toward parameters set in applicable regulation.

Closed 16/07/2011

2010.11 4.4.4 Evaluation of monitoring of water usage per tonne of FFB - The Company has provided a record of monitoring of water usage per tonne of FFB for the estate, but has not provided evidence of evaluation of the use of water monitoring data against a predetermined budget.

CFA Mill The company is recommended to evaluate the data of monitoring of water usage per tonne of FFB for the mill against a predetermined budget

Before Stage-2

The company has conducted the monitoring of water usage per tonne of FFB. Based on monitoring data, the average use of water for the plant exceeds a predetermined budget. The company has evaluated the data, namely: the excessive use

Closed 16/07/2011


ASSESSEMENT REPORT





of water against the predetermined budget was caused by the volume of FFB processed is lower than the budget, domestic water use for employee housing tends to increase as the increased number of employees, while the boiler continues to run beyond the operational hours of processing activity in order to support the KCP (Kernel Crushing Plant) station. The company has developed a water use efficiency plan in accordance with a predetermined budget in the form of the documented Water Use Action Plan of PT Ramajaya Pramukti - Rama Rama Mill & KCP. The measures already taken are inter alia: socializing water use efficiency, recycling turbine cooling water into reservoir for reuse in the processing unit,


ASSESSEMENT REPORT





daily/weekly/monthly monitoring water usage, and summarizing data of use of water processing and domestic water separately. This Action Plan was planned to be completed in August 2011.

2010.12 4.6.1 Evidence of a licensed pesticide - The company has been able to demonstrate the documented evidence of the use of licensed and registered pesticides, but the audit team found some pesticides whose validity period of license registration has expired. For example: Ally 20 WP pesticide whose registration has expired on June 14, 2009.

CFA Estate The company is recommended to provide evidences indicating that all pesticides it uses have valid registration.

Before Stage-2

Based on the Pesticide Book published by the Ministry of Agriculture of Republic Indonesia, the company has renewed the permit of Ally 20 WP pesticide until 30 April 2014 and, based on the chemicals use record, Ally 20 WP pesticide has not been applied anymore since February 2010.

Closed 16-Juli-2011

2010.13 4.6.4 Pesticide packaging waste – Based on SOP (SOP / RJP / LBH) for waste treatment, the audit team got information that the pesticide packaging waste are buried, and there is no enough evidence that the company has communicated the relevant agencies regarding the approval for unused pesticide containers burial in accordance with the prevailing regulations.

NC Estate The company should make available the documented evidence of communication with relevant agencies regarding approval for burial of pesticides container waste in accordance with prevailing regulations.

Before Stage-2

The company has not applied the pesticide container waste burial system anymore since November 2010. The company also has revised the SOP (SOP/ RJP/LBH revision 01) concerning the pesticide container waste treatment. In the SOP, the company

Closed 16/07/2011


ASSESSEMENT REPORT





has not applied the pesticide container waste burial system anymore, instead of delivering them to the licensed vendor. This SOP was revised and ratified on 1 November 2010 by the VPA, VPM, RC and PC.

2010.14 4.7.5 Risk assessment documents - Based on field visit, it was found that the company’s harvesting workers are not equipped with appropriate PPE, such as helmet; although the company has explained that the recommended PPE for harvesting workers is based on the risk analysis result.

CFA Estate The company should review its risk analysis data so that the recommended use of PPE for harvesting workers is appropriate.

Before Stage-2

The company has reviewed its risk analysis document, especially in respect of the use of helmet for harvesting workers when working.

Closed 16/07/2011

2010.15 4.7.8 Portable fire fighting tools - the company has adequate fire fighting equipment and checked them routinely. However, based on field visit the audit team found that the portable fire fighting tools are not equipped with validity period information.

CFA Mill & Estate

The company is recommended to furnish the information on validity period of its own portable fire fighting tools.

Before Stage-2

Based on the field visit, the audit team found that the company’s fire extinguisher, Hydrant and First Aid kits are in well-maintained and inspected routinely. Each portable fire fighting tool contains the validity date, for example: fire extinguisher number 34 located at engine room, the last filling date: 21 October 2010, recharging date: October 21, 2011.

Closed 16/07/2011


ASSESSEMENT REPORT





2010.16 4.8.1 Scheme Smallholders training program - the company has provided training to smallholders in the form of regular education, but has not provided sufficient documented evidence of the smallholders training program.

CFA Estate The company is recommended to provide documented training programs for smallholders

Before Stage-2

The company has also established the training program for smallholders and has realized it in the form of Integrated Pest Management training in KUD Makmur Lestari on 30 November 2010.

Closed 16/07/2011

2010.17 5.1.2 RKL / RPL Report- The company has documented RKL / RPL Report of PT Ramajaya Pramukti period 6 months, but the report does not explain all the parameters of the management of environmental impacts based on the RKL / RPL document 1996, for example: Monitoring and Management of Elephant Disturbances:

CFA Mill & Estate

The company is recommended to review the RKL / RPL Report and adjust all contents of the report with all parameters of environmental impact management based on the RKL / RPL document 1996.

Before Stage-2

The company has revised the content of RKL/RPL Report by adding all parameters of the environmental impact management based on RKL/RPL document year 1996 including management and monitoring of disruption by elephant. In RKL/RPL Report on April, 19, 2011 for second semester period (July to December) year 2010 reported. It is stated that management and monitoring of disruption to and by elephant has not been done anymore because it has been a long time (10 years) since the last disruption by elephant.

Closed 16/07/2011


ASSESSEMENT REPORT





2010.18 5.2.1 HCV Identification Document - HCV Identification document of PT Ramajaya Pramukti is available, but the drafting process and content of the document have not fully been in accordance with the HCV Identification Toolkit published by the Consortium of HCV Toolkit Indonesia in May 2008. For example: in respect of report preparation framework, supporting data used, management’s approval, public consultation implementation data, inconsistency of map scale to the print out, report peer review has not been conducted, and competence of drafting team.

NC Estate The company should review the HCV identification document by adjusting all process of the preparation and content of the document in accordance with HCV Identification Toolkits published by the Consortium of HCV Toolkit Indonesia May 2008.

Before Stage-2

HCV identification documents are available for PT.RJP, compiled by HCV Identification Internal Compiling Team consists of 5 persons Norman Faried Mustakim; (approved RSPO HCV Assessor), Kusuma Widya Rochmah, Tomi Herdartomo, Nazlya Syahputri, Firmasnsyah and Bambang Setyaji) validated in February 2011. Peer review was conducted by external party (Dwi Rahman Muhtaman) in October 2010.

Closed 16/07/2011

2010.19 5.2.2 5.2.3

HCV area management program – Documented HCV management and monitoring plan is unavailable.

NC Estate The company must provide the documented HCV management and monitoring plan

Before Stage-2

The HCV Identification Report contains measures already taken as follows; a. Planning of

revegetation of buffer zone around the river borders at the time of replanting palm oil crop.

b. Posting of warning board on conservation of the

Closed 16/07/2011


ASSESSEMENT REPORT





HCV area. c. Reduction of estate

operation intensity around the area.

d. Free-chemical application in the border zones.

e. Socialization towards the employees and surrounding community about the preservation of the buffer zones.

f. Posting of warning boards on preservation protected species.

g. Socialization towards the employees and surrounding community about the conservation of protected species.

2010.20 5.2.5 Trained personnel - the company has

appointed dedicated officer to manage the HCV area, but has not provided sufficient evidence that such officers have been trained in accordance with their duties.

NC Estate The company should present a documented data indicating that its dedicated officers of HCV management have been trained in accordance with their duties.

Before Stage-2

The Company has assigned special officers to manage and monitor HCV for example ; Mr.Ajie Prasetiyo in accordance with SEM RRME appointment letter

Closed 16/07/2011


ASSESSEMENT REPORT





dated January 24, 2011 where the person concerned is appointed as HCV and Environmental Officer of Rama Rama Estate (PT Ramajaya Pramukti). Internal training has been given to the officer delivered by Section Head of HCV officer ENVD Smart Tbk on October 28, 2010, May 26, 2011 and July 1, 2011.

2010.21 5.3.3 Hazardous waste treatment - Based on field visit, it was found that the company’s hazardous waste treatment has not been in accordance with the Government Regulation No. 18 of 1999 (Hazardous Waste Treatment). For example: used oil and fuell filter waste in Rama Rama Estate are stored in a non-licensed temporary storage facility and hazardous waste monitoring reporting to the relevant agencies has not been conducted.

NC Mill & Estate

Hazardous waste treatment should be conducted in compliance with the Government Regulation No. 18 of 1999. For example: storage of all hazardous waste in a licensed temporary storage facility and reporting of hazardous waste to the relevant agency.

Before Stage-2

Hazardous waste (used oil and diesel fuel filter waste) has been collected in licensed storage. Hazardous waste monitoring has also been done and reported to the related institution.

Closed 16/07/2011

2010.22 5.3.3 Hazardous waste management – It was found that the company sold its hazardous waste in October 2010 to a hazardous waste collector whose transportation permit has expired in accordance with the Government

NC Estate The company should provide evidence that the hazardous waste collector it hires has a valid license and is equipped with transport

Before Stage-2

The company has presented the full data of delivery of hazardous waste to a licensed vendor/collector. For example: the operation

Closed 16/07/2011


ASSESSEMENT REPORT





Regulation No. 18 of 1999. permit in accordance with the prevailing regulations (Government Regulation No. 18 of 1999)

and transportation permits of the collector, etc..

2010.23 5.4.1 Monitoring of renewable energy – there is no sufficient documented evidence of use of renewable energy (energy per tonne of FFB or energy per ton of palm products) including its efficiency analysis.

NC Mill The company should present the documented data of renewable energy use recording (energy per tonne of FFB or energy per ton of palm oil products) as well as the efficiency analysis.

Before Stage-2

The company has provided data of the results of the monthly monitoring of renewable energy usage (fiber and shell). The company has also provided evidence of the analysis of the use of fiber and shell fuel-efficiency for boiler station to generate electricity (Kwh).

Closed 16/07/2011

2010.24 5.4.2 Fossil fuel use monitoring – the company has no sufficient data of evidence of fossil fuel use and its efficiency analysis

NC Mill The company should present the documented data of fossil fuel use and efficiency analysis

Before Stage-2

The company has monitored the diesel fuel use for generator each month; there is monitoring data of Diesel Fuel Consumption Rate 2011 (January-June). The diesel fuel consumption rate could be minimized by optimizing the use of fiber and shell as fuel for boilers.

Closed 16/07/2011


ASSESSEMENT REPORT





2010.25 6.1.1 Social impact analysis document - social impact analysis document is available in addition to the EIA document in the form of SIA Document of PT Ramajaya Pramukti that includes positive and negative impacts. But the document still has some shortcomings, in terms of its legalization, supporting data, involvement of affected stakeholders, and drafting team competency.

NC Mill & Estate

The company should review the document of social impact analysis by completing its content with the following information: legalization, supporting data, documented involvement of affected stakeholders and competency of drafting team.

Before Stage-2

There is data of Social, Economic, and Cultural conditions as well as perception of people around the plantation / mill of PT Ramajaya Pramukti, which is taken into account in the Social Impact Assessment document prepared internally by the company (Tomi Hendartomo, Yosaphat Ardhilla Renato and Nazlya Syahputri) in November 2010 in which the parties affected either positively or negatively by the company’s palm oil mill and estate operations are identified. This document details the type, source, management action, management parameters, management location, period / schedule of management, detailed management, and parties affected by the impacts.

Closed 16/07/2011

2010.26 6.1.2 Records of social impact management and monitoring - the company has not been able to provide a documented data of social impact

NC Mill & Estate

The company should prepare the social impact management and monitoring document

Before Stage-2

The company has presented the documented social impact management and

Closed 16/07/2011


ASSESSEMENT REPORT





management and monitoring efforts involving the community based on the SIA document of PT Ramajaya Pramukti

which involves the community on a regular basis.

monitoring plan covering; a. Social Impact

Management Plan prepared by SEM RRME detailing type, source, management action, management parameters, management location, period / schedule of management, management measures, and parties affected by the impacts.

b. Social Impact Monitoring Plan prepared by SEM RRME detailing type, source, monitoring action, monitoring parameters, monitoring location, period / schedule of monitoring, detailed monitoring, and parties affected by the impacts.


ASSESSEMENT REPORT





Based on information from the management unit, the monitoring report will be prepared on annual basis.

Non-conformance appeared during stage-2

2011.27 4.7.5 Risk Analysis - Based on field visit to Pondok I Rama Rama Estate (water pump and water tank stations), the audit team found that such areas are potential of an accident and the risk analysis has not been done in the areas.

CFA Estate The company should prepare risk analysis document to be implemented in water pump and water tank stations in employees’ Pondok I Rama Rama housing complex.

S1 Not applicable during the audit

Open

2011.28 4.7.6 OHS training for machine station operators - Based on the field visit and document review for the machine room operator (steam turbine) in the name of Ansori, OHS training has not been carried out in accordance with applicable legislation (Law no. 1 of 1970 Jo. Permenaker N0. 04/MEN / 1985).

CFA Mill The company is recommended to realize the OHS training program for the machine room operators (steam turbines) who still have not received training.


Open

2011.29 5.2.2 Buffer zone management - the Company has conducted buffer zone management by planting vertiver grass Guatemala. But on buffer zones with high erosion rate, the audit team did not find perennials/trees. For example: in the buffer zone of Air Jernih River.

CFA Estate Buffer zones with high erosion rate should be planted with perennials. For example: in buffer zone in Air Jernih River


Open


ASSESSEMENT REPORT





2011.30 5.5.4 Forest fire infrastructure and facility - Based on the field visit to the central workshop Rama Rama Estate, the audit team found forest fire facilities and infrastructure that are not equipped with fire hose nozzle. The company has issued an interim purchase order for fire hose nozzle. However, the company is encouraged to follow up such purchase order to be realized soon.

CFA Estate The company is encouraged to follow up its purchase order for the goods to be realized soon.


Open


ASSESSEMENT REPORT


3.2 Issues that arise from the stakeholders, Company and Auditor Responses

Public issues

Company Responses Auditor Responses

1 BKPM Riau Province The company has not submitted its LKPM report for period the 2nd semester of 2010 and 1st

LKPM (Capital Investment Activity Report) prepared by the Central Management Jakarta was delivered to the BKPM (Investment Coordinating Board) in Central Jakarta, with a copy to the Provincial and district BKPM offices, as well as Plantation Agency of Riau Province. LKPM for the second semester of 2010 has been reported to the Central BKPM Jakarta. LKPM for the first semester of 2011 are still under preparation process and will be reported immediately.

semester of 2011 to BKPM. The company also has not reported its social activity reports to BKPM. However, the local community admitted that the company’s relationship with local people is very good. The company can provide benefits to the surrounding community.

The company was able to present evidence of LKPM documents made on semester basis and evidence of LKPM reporting to the related agency.

2 Kota Baru Village Chief The company has been conducting the smallholder scheme since 1994. The company has been establishing a very good relationship with the smallholders since 1994 until now. Farmers feel that the smallholder scheme under KKPA system is very useful.

The company is committed to continue to guide the farmers by providing technical guidance in the management and cultivation of palm oil plantations. The company has partnerships with farmers in terms of procurement of fertilizers, company’s staff placement in KUD and transfer of technology through education and training activities.

Based on field visits and interviews with several farmers' KUD, the audit team found that the relationship between the company and farmers has been going well; the farmers feel aided by the company, and the farmer development system implemented by the company also runs well.

3 Riau Province’s Plantation Office Assessment of estate rating has been carried out for all estate of PT Buana Wiralestari Mas and PT Ramajaya Pramukti with first class outcome; however there are a number of concerns in respect of legality, such as: unavailability of IUP, HGB, and OHS. The company also has not socialized its vision and mission to stakeholders. The company also has not reported its plantation business progress

The company is very proud as being ranked the first rank estate based on the estate ranking assessment conducted by the Provincial and District Plantation Offices. The company’s documents, such as IUP, HGB, OHS, plantation activity progress reports to the Plantation Office, and other related documents have been made available and inspected during the assessment process. In the estate

The company has shown documented estate grading evaluation result conducted by the relevant agent, which indicates that the company was ranked as first class estate.


ASSESSEMENT REPORT


Public issues


report to the local Plantation Office. The company has not established a job description for staff. The company has not a commitment to transparency, such as reporting of balance sheets, profit / loss, taxation (e.g. Income Tax), investment data, credit facilities, cost of sales, production volume of CPO, shell, fiber and other solid waste. The company also has not reported its environmental management efforts to the Plantation Office. However, it is recognized that the company's relationship with the local people is good.

assessment process, the company’s job description for staff has been presented. The company has a commitment to transparency as per the RSPO principles and criteria. Documents those are publicly available, such as balance sheets, statement of incomes, taxation (e.g. Income Tax), investment data, credit facilities, cost of sales, production volume of CPO, shell, fiber and waste, environmental management reports, have been made available and reported regularly to the stakeholders according to the prevailing regulations. The company consistently maintains its good relationship with the local communities and provides them with positive contributions.

Legality documents (e.g.: HGU, IUP), OHS documents, and other reporting are available on site. The documents as mentioned by the Plantation Office have been examined by the auditors during the audit process, and the company can show proof that the documents have been served.

4 JAMSOSTEK, Riau Province With respect to the employment issues (in this case is insurance / social security plan for workers) the company has complied with the prevailing regulations. Based on existing data, there have been 42 cases of work accidents, 172 persons were terminated and 22 persons died (not caused by work accident) for the period of January to June 2011. However, the company is expected to also pay attention to social security plan for smallholders who have established a well-relationship with the company. Then the company must also require contractors to enroll their employees with the JAMSOSTEK.

The company is committed to protecting all workers through the Jamsostek plan. Jamsostek report for each employee is submitted routinely by the company to the Jamsostek Office, in terms of both work accidents and employment termination on any grounds such as death, resignation, etc. The company has partnerships socialization Jamsostek to farmers and contractors in order to include all the workers into the Social Security program. Work in the Letter of Agreement with the contractor, the Company requires the contractor to include the workers into the Social Security program.

The company has presented the documented data indicating that all employees have been listed as participant of JAMSOSTEK plan. Each month, the company routinely reports the details of Jamsostek plan activities to the JAMSOSTEK Office. For farmers or contractors, the company has made efforts to provide them with understanding of the importance of JAMSOSTEK plan.


ASSESSEMENT REPORT


Public issues


5 Kampar Regency’s Plantation Office The company is considered less transparent related to information requests. The company has never responded to requests for information sent by Kampar Regency’s Plantation Office, such as production data.

The company has a high commitment to transparency principle as per the RSPO principles and criteria. Requests for information from the stakeholders are consistently followed up in accordance with prevailing procedures. All written requests for information from stakeholders and the company’s responses are well-documented.

Based on the document review, the company was able to present the documented records of stakeholders’ request for information and the company’s responses. All of such records are controlled and well maintained.

6 Sari Galuh Village Chief Sari Galuh village situates adjacent to PT RJP. KUDs (Cooperatives) Sari Galuh Village is not under the supervision of PT RJP. However, the company shows its better commitment to the local people, such as assistance to orphans and medical services, for instant. If allowed, the local people being member of the KUD intend to be partner of PT RJP in plantation management. However, they want to know the percentage CSR fund distributed to the local community and the areas in which such funds are distributed.

The Company is very pleased to build relationships with the villagers of Sari Galuh although their KUD is not built by the company. The company welcomed the Sari Galuh villagers intending to be smallholders of the company. However, the prevailing regulatory aspects should be taken into account. The company consistently provides its assistance through the CSR program on annual basis primarily to local people.

Tim audit team was of the opinion that the company has built good relationships with local people and farmers' KUD as indicated by the desire of a local KUD to be a partner of the company. The company has established and implemented its CSR program.

7 Kampar District’s BLH (Environmental Control Office) The company has conducted testing of emission sources and has carried out the hazardous waste management. The company also has a license for hazardous waste temporary disposal facility. However, associated with the river border/buffer zone management, the company still performs palm oil planting in that area.

The company is committed to environmental management based on the applicable provisions such as license management and license of temporary disposal facility of hazardous waste, emission testing, soil and surface water quality tests, management and permit for utilization of effluent, etc. With respect to the planted buffer zones / river border areas, the company has managed them by taking into account the environmental aspects, such free-pesticide, free-mechanic fertilization and planting erosion-preventing crops such as vertivergrass on the riverbank. Reports of Environmental management and monitoring

Based on the document review and field visit, the auditors determine that the company’s environmental management and monitoring plan have been carried out well within the company. For the management of river border with palm planted, the company has established the management program and is committed to protect the area.


ASSESSEMENT REPORT


Public issues


efforts are submitted periodically to the relevant agency through the RKL / RPL Report according to applicable regulations.

8 Petapahan Village Chief The company already has a very good relationship with the surrounding community, especially Petapahan villagers. KUD Kopta Masta was built by PT RJP. It was admitted that the company has a good commitment in developing the Scheme smallholder farmers. The company is deemed as having good transparency in its relationship with the local community. The company also has made timely payments to Scheme smallholder farmers. Communication between the local community represented by KUD and the company’s management unit are made in formal correspondences.

The company consistently keeps its good relations with the local people and provides them with positive contributions. KUD Masta Kopta is the KUD target of the company which is very cooperative and always gives supports the company programs. The company desires to keep this well-established relationship sustainably.

The audit team was of the opinion that the KUD development system implemented by the company has improved the good relations that had been established.

9 Scheme Smallholder The company has a commitment to FFB price transparency. In pricing the FFB, the company involves the smallholders. The company has also conducted socialization in respect of the social security allowances, such as JAMSOSTEK.

The company has a commitment to transparency principle as per the RSPO principles and criteria. The process of smallholder FFB pricing is implemented in accordance with applicable regulations, including involving representatives of farmers, related institutions and the company’s representatives. The company has conducted socialization of Jamsostek plan toward farmers and requires its contractors to register all of their workers with the JAMSOSTEK plan.

The audit team was of the opinion that the company has made best efforts in building up farmers’ KUD leading to good relationship between the company and the farmers.


ASSESSEMENT REPORT


Public issues


10 KUD Sei Lembu Makmur The company directly provides the smallholders with technical education on palm oil cultivation. The company has also provided fertilizer loan to farmers and has conducted leaf analysis as a basis for giving fertilizing recommendation.

The company is committed to continually perform the development of Scheme smallholder farmers by providing them with technical guidance on management and cultivation of palm oil plantations. The company has established a partnership with the Scheme smallholder farmers in the procurement of fertilizer, leaf, pest and disease assessments, placement of company’s staff in KUD and transfer of technology through education and training activities.

The audit team was of the opinion that the company has made best efforts in building up its relationship with farmers’ KUD.

11 KUD Mekar Jaya The company has a commitment to the smallholders (Scheme smallholder farmers), such as: scholarship assistance to farmers’ children having good educational performance to continue their education into college.

The company is committed to improving the quality of education for the local community, such as by organizing a scholarship program for agronomy (SMART Diploma) in cooperation with the IPB in Bogor, and for engineering (SMART Engineer) in collaboration with INSTIPER in Yogyakarta. In addition, the company also accepts apprentice of students from schools and communities around the company’s estates.

The company has presented the audit team the data of scholarships granted to those farmers’ children with good educational performance to continue their school to college.

12 KUD Makmur Sejahtera, Tanah Tinggi Village The company provides monthly cash development assistance to the farmers. This assistance is given depending on the tonnage of FFB that can be reached by the smallholders. The company has established a very good relationship with the community.

The company is committed to continually perform development of Scheme smallholder farmers by providing them with technical guidance in the management and cultivation of palm oil plantations. The company also provides funding assistance for cooperatives in accordance with the achievement of production each month with the aim of increasing productivity. In addition, the company also provides financial incentives to farmers whose FFB quality meets the criteria established by the Company.

The company has presented the audit team the records as reported by the community.


ASSESSEMENT REPORT


Public issues


13 Chairman of Kampar Regency’s DPC SPSI (Trade Union) Compared to other companies in Kampar District in particular, Sinarmas (PT BWL and PT RJP) is much better. The presence of the company has provides positive impacts on the surrounding community. The company has also a high commitment to worker protection issues.

The company consistently maintains its good relations with the local community and provides them with positive contributions. The company is committed to protecting workers' rights in accordance with applicable regulations. Adequate facilities for workers have been granted by the company. The company continuously performs coordination with workers' representatives on the rights of workers.

The company has established a good relationship with local community.


ASSESSEMENT REPORT


4.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY 4.1 Official signature of assessment findings

The undersigned, Management Representative of the inspected company hereby acknowledges the assessment results and agrees to all contents of this assessment report, including non-conformance findings.

Signed on behalf of:

Head of Environmental Department

Lead Auditor

Ivomas Tunggal

PT Mutuagung Lestari

Ismu Zulfikar Aryo Gustomo

Saturday, July 16th

2011 Saturday, July 16th 2011


ASSESSEMENT REPORT


Annex 1. Checklist of Main Assessment Reports of the RSPO Certification

RSPO Ref. MUTU-Certification VERIFICATION RESULT Status

PRINCIPLE #1 COMPANY’S COMMITMENT TO TRANSPARENCY PRINCIPLES

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

1.1.1 Records of information request

ST1 There is SOP Communication and Consultation with Stakeholder (SOP / RJP / COM) through which stakeholders may submit their request for information via an internal media to PT RJP. However, until the pre-assessment activity the audit team did not found written request for information from stakeholders to PT RJP. Most of incoming mails are in the form of funding proposal, there is also a mail which is a notice of information to PT RJP (Example: Letter of No B/34/012010 dated January 8, 2010 from JAMSOSTEK office concerning the confirmation of reconciliation Jamsostek dues. a. Internal media; regular/special meeting between sections, which includes:

- Meeting of all employees. - Meetings between groups. - Training handbook, video, notice board. - Monthly and weekly reports. - Phone, Cellular, HT, SSB, Lotus NOI, SASP. - Mail Box

b. External media include: - Mail Box available in security guard post, main office and division offices. - Official correspondences. - Meetings

√

ST2 There is SOP Communication and Consultation with Stakeholder (SOP / RJP / COM), dated February 5, 2010, which details type of communication activities including External Consultation and Internal Communications. Internal media of internal request for information; special and regular meetings, training handbooks, videos, notice board, monthly reports, weekly reports including environmental performance report, telephone / HP, HT, SSB, Lotus Notes, SAP and mail boxes; External communications; complaints, demands, claims and dissatisfaction against the company’s estate and mill operations. There is SOP for stakeholders’ request for information, dated February 5, 2010, which details mechanism of response to information from relevant stakeholders. For example: Written Request for Information No. 192/UN.19.2/PPK/2011 dated June 6, 2011 sent by the Head of the Population Research Center, Research Institute of the Riau University concerning the Request for Data and Information (as materials of Study of Permit for HGU Plantation Extension in Kampar regency. This letter was sent via representative office Pekanbaru and was responded by the company through a letter No. 06/RRME/0G/2011 addressed to Mgr D & L PBRO (Mr. Wisnhu OH) dated June 26, 2011 to be forwarded to the applicant.

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1.1.2 Records of responses to information requests

ST1 Until the implementation of the pre-assessment activity, audit team did not find written request for information from stakeholders to PT RJP. Most of incoming mails are in the form of funding proposal, there is also a mail which is a notice to PT RJP (Example: Letter of No B/34/012010 dated January 8, 2010 from JAMSOSTEK office concerning the confirmation of reconciliation Jamsosek dues

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ASSESSEMENT REPORT


ST2 Records of responses to requests for information are maintained in the Information Book containing responses to information requests from external parties, for example; a. Submission of Labor report for first trimester of 2011 submitted by the company to the

Manpower Office of Kampar Regency through a Letter No. 0034/SMOHS/RRME-K/04/2011 dated 15 April 2011 concerning Quarterly P2K3 Report.

b. Submission of Labor report for first trimester of 2011 submitted by the company to the Manpower Office of Kampar Regency through a Letter No. 003/SMOHS/RRME-K/01/2011 dated January 4, 2011 concerning Quarterly P2K3 Report.

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1.1.3 Records of information requests and response towards them are held with storage periods given by the company in accordance with the importance of each document.

ST1 The retaining time of records of requests for and responses to information is set out in the SOP Control and Retaining Period of Records/Documents (SOP / RJP / Dok) dated 05 February 2010 which provides: a. The validity period of the SOP is 3 Years. b. The retaining period of documents is 5 years.

√

ST2 In additional to documents seen at ST1. c. Based on information from management (Tito Y) licensing, regulatory and corporate legal

documents are maintained for a period as long as the same are still valid. √

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.

1.2.1 Information requests and responses must include any relevant or required documentation, in accordance to applicable national regulations.

ST1 • There are HGU certificates in PT RJP, i.e: 1. HGU Certificate No. 03 dated 28 September 1994, which is supplemented with a Site Map

No. 09/1991 dated June 11, 1991 with a total area of 2,196,27 hectares situated at Petapahan Village.

2. HGU Certificate No. 149 dated January 30, 2001 equipped with Land Survey Document No. 01/18.01/2001 dated January 30, 2001 and Site Map dated December 6, 1999 with a total area of 1,844.07 hectares.

3. Decree of the Minister of Forestry of RI No. 248/Kpts-II/1991 dated May 6, 1991 on Forest Area Release.

4. Preliminary Permit No. KB.320/223/Mentan/VI/1988 dated June 8, 1988 of the Minister of Agriculture of RI on Preliminary Permit for Palm Oil Development under PIR-Trans (People Nucleolus Plantation for Transmigrant) system.

5. Recommendation No. 525/238/Pem-Um/1991 of Kampar Regent dated May 14, 1991 on Recommendation in the name of PT Ramajaya Pramukti and PT Buana Wira Lestari for obtaining HGU certificate.

6. Decree No. Kpts.04/PI-VIII/1991 of the Governor of Riau dated August 5, 1991 on the Reserved Land covering ± 12,400 hectares situated at Patapahan Village, Siak Hulu Sub district and Kampar Sub district of Kampar Regency for palm oil plantation development under PIR-trans pattern managed by PT RJP.

7. Decree No. Kpts.60/IL-IX/1991 of the Governor of Riau dated September 4, 1991 on

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ASSESSEMENT REPORT


Concession (Site Permit) and Discharge of Rights/Purchase of Land with a total area of 11,500 hectares situated Patapahan Village, Siak Hulu Sub district and Kampar Sub district of Kampar Regency for palm oil plantation development under PIR-trans pattern managed by PT RJP.

• There is Environmental Impact Analysis document approved under an Approval Letter No. RC.220/497/B/III/1994 dated March 18, 1994 while the RKL / RPL Report was approved under an Approval Letter No. 092/RKL-RPL/BA/IV/1996 dated April 30, 1996. The RKL-RPL report is compiled on a semester basis and sent to the Environmental Control Office (BLHD) of Kampar Regency.

• There is CSR document containing Company’s CRS Program Implementation Summary 2009-2010, Minutes and society’s request for assistance.

• There is OHS document, which contains: a. OHS Manual. b. Identification of sources of hazards, risk assessment and control. c. Identification of OHS regulations, laws and other relevant requirements. d. OHS communication and consultation. e. OHS program. f. OHS document control. g. Development of skill and progress. h. Emergency handling. i. Evacuation. j. Accident handling

• There is record of monitoring result in the RKL-RPL document and recommendations for improvement in the future.

ST2 Similiar to stage-1 audit.

1.2.2 Records of information requests and response towards them are held with storage periods given by the company in accordance with the importance of each document.

ST1 There is record of stakeholders’ requests for information and the company’s responses in the form of a Communication and Consultation Manual with a retaining time of 5 years (SOP for Control and Retaining Time of Documents, SOP / RJP / DOK dated February 5, 2010.

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ST2 Same with the ST1 audit process, where the record of stakeholders’ requests for information and the company’s responses is available with a retaining time of five years. This conforms to the SOP for Control and Retaining Time of Documents, SOP / RJP / DOK dated February 5, 2010. Based on information from the company’s management unit (Mr. Hendi) he said that such validity period and the retaining time apply to those documents related to the RSPO, other than legal or licensing documents that consistently apply as long as the same are still valid.

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PRINCIPLE # 2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

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

2.1.1 Evidence of compliance with relevant legal requirements


ASSESSEMENT REPORT


ST1 The Company has made efforts to comply with the regulations related to its palm oil plantation and mill operations. For example: - Having HGU certificates as required by Law No. 18 of 2004 on plantation. - Conducting delineation of buffer zones 50 m in accordance with Presidential Decree No. 32/1990

on protected areas. - Having licensed temporary disposal facility of hazardous waste within the mill area in accordance

with Government Regulation 18/1999 on the Hazardous and Toxic Waste Treatment. - Conducting river water quality test in accordance with the Government Regulation No. 82/2001 on

water quality management and water contamination control. However, based on the observation, the audit team found evidence the company has not met some of the relevant regulations. Example: Permentan No. 7 of 2007 Article 7 of the training for spraying workers in the use of restricted pesticides (Paraquat); OHS License for tractor operators in the estate (for example in Naga Sakti Estate) in accordance with the Permenaker No. 9 of 2010 Articles 3, 4, 5 , 11, and 13 on Operators and Officers of Lifting and Transport Tools. Company must provide documented data on its compliance with all relevant regulations, including, but not limited to: Permentan No. 7 of 2007 Section 7; and Permenaker No. 9 of 2010 Articles 3, 4, 5, 11, and 13. The Non conformance of this indicator is NC-2010.01

X

ST2 In the ST2 audit process, the company has conducted training for spraying workers on the application of pesticides (Paraquat) delivered by the Pesticide Commission of Riau Plantation Office (Suratmo, SP.) on February 8, 2011 which was followed by spraying employees of Kijang Estate, Nagamas Estate, Ramabakti Estate, Rama Rama Estate and Nagasakti Estate. In the ST-2 audit process, the company has demonstrated Operator License, for example in the Rama Rama Estate as indicated in the table below:

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No Name Heavy Equipment Type

No. SIO Issue Date Valid until

1 Wahyudi Overhead Travelling Vrane

(OTC)

09.2112/OTC/KK/XI/09 9-Nov-05 9-Nov-14

2 Jainal Silalahi Traktor 10.6722/ORF/PNK3/XI/10 26-Nov-10 26-Nov-15 3 Robert Sitorus Traktor 10.6719/OTC/PNK3/XI/10 26-Nov-10 26-Nov-15 4 Marthin Traktor 10.6718/OPC/PNK3/XI/10 26-Nov-10 26-Nov-15 5 Jani Siahaan Greader 10.6720/OTC/PNK3/XI/10 26-Nov-10 26-Nov-15 6 Legino Traktor 10.6721/OTC/PNK3/XI/10 26-Nov-10 26-Nov-15 7 Zulhedi Traktor 10.7353/OPF/KK/XII/10 13-Dec-10 13-Dec-15 8 Suriadi Genset (Diesel) 10.154/OPD/KK/X/10 18-Oct-10 18-Oct-15 9 Irwanto Motor Greader 09.4886/OPF/KK/XI/09 9-Nov-09 9-Nov-14

10 Parulian Pane Traktor 10.7355/OPF/PNK3/XII/10 13-Dec-10 13-Dec-15 11 Ewinda Purba Greader 10.7378/OPF/PNK3/XII/10 13-Dec-10 13-Dec-15 12 Wahyudi Traktor 10.7356/OPF/PNK3/XII/10 13-Dec-10 13-Dec-15 13 Sujarwadi Traktor 10.7357/OPF/PNK3/XII/10 13-Dec-10 13-Dec-15 14 Paramean Sirait Traktor 10.7354/OPF/PNK3/XII/10 13-Dec-10 13-Dec-15 15 Hasdin Opp.

Sungguh Traktor 10.7379/OPF/PNK3/XII/10 13-Dec-10 13-Dec-15

The Non conformance status of NC-2010.01 is declared as closed.

2.1.2

Evidence of efforts made to comply with changes in the regulations


ASSESSEMENT REPORT


ST1 The company has a mechanism for complying with the amendment to regulations (see indicators 2.1.3. And 2.1.4). However, based on field visit, the audit team found that the company has not made efforts to comply with the change in regulations, for example: Marking of hazardous waste as per the PermenLH No. 3 of 2008. At the time of pre-assessment, the company used old hazardous waste symbol as per the Decision of Head of Bapeddal No. 5/1995. The company is encouraged to comply with the changed regulations in respect of its whole mill and plantation activities. The Non conformance of this indicator is CFA-2010.02.

X

ST2 There is SOP on Compliance with Regulations and other Requirements (SOP / CPR / PPL) issued on February 5, 2010 prepared by the Regional Controller / Production Controller and approved by the Vice President of Agronomy / Vice President of Mill regulating the company evaluation mechanism of regulatory compliance. There is a List of Regulations and the Company’s Compliance as follows; a. Evaluation of Compliance with Laws and Regulations as well as other requirements in respect of

OHS (Document 01/ENVD-EK-LH/X/2010) consisting of 32 types of regulations, for example, Regulation of the Minister of Manpower and Transmigration No. 4 of 1980 on Conditions of installation and maintenance of Portable Fire Fighting Tools.

b. Evaluation of Compliance with Laws and Regulations as well as other requirements in respect of Environmental Protection (Document 02/ENVD-EK-LH/X/2010) consisting of 24 regulations, for example; Act No. 32 of 2009 on the Environmental Protection and Management.

c. Evaluation of Compliance with Laws and Regulations as well as other requirements in respect of High Conservation Value (Document 03/ENVD-EK-LH/X/2010) consisting of seven regulations, for example, Law No. 5 of 1994 on the ratification of the United Nations Convention on Biological Diversity.

d. Evaluation of Compliance with Laws and Regulations as well as other requirements in respect of Employment (Document 5/ENVD-EK-LH/X/2010) consisting of 15 regulations, for example, Law no. 3 of 1992 on Social Security Plan for Workers (JAMSOSTEK).

e. Evaluation of Compliance with Laws and Regulations as well as other requirements in respect of Plantation Licensing (Document 04/ENVD-EK-LH/X/2010) consisting of 10 regulations, for example; Regulation of the Minister of Forestry No.146/Kpts-II/2003 on Guidelines for Evaluation of Exploitation of Forest Area / Ex-Forest Area for Plantation Business Development.

This document details article-by-article of regulations governing plantation operations, the requirements the company shall fulfill and measures the company takes. The Non conformance status of CFA-2010.02 is closed.

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2.1.3

A documented system, which includes written information on legal requirements that the palm oil company should comply with.

ST1 The company has a list of regulations associated with its plantation and mill activities, but it does not include all relevant local regulations, for example: Regulation No. 95 of 2009 of Governor of Riau Province on the minimum wage applicable in districts or cities within Riau province; Regulation No. 35 of 2007 of Governor of Riau Province on effluent quality standards. The company is encouraged to complete the list of regulations in respect of its plantation and mill activities, including local regulations. The Non conformance of this indicator is CFA-2010.03

X

ST2 At the time of ST2 audit process, the company has provided documents related to regulatory and legal requirements of its palm oil plantation management which include;

a. Regulation No. 95 of 2009 of Governor of Riau Province on the minimum wage applicable in districts or cities within Riau province, which has been amended by Governor of Riau Province

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ASSESSEMENT REPORT


No. 10 of 2011 on Minimum Wage for Coconut, Palm Oil and Rubber Agriculture / Plantation Sub-Sector in Riau Province in 2011, dated February 1, 2011. The minimum wage in question is Rp. 1,234,000. - / month.

b. Regulation No. 35 of 2007 of Governor of Riau Province on effluent quality standards. The Non conformance status of CFA-2010.03 is declared as closed.

2.1.4 A mechanism for ensuring that compliance with relevant legal requirements is implemented.

ST1 The company has SOP for evaluation of compliance with prevailing laws and regulations as well as legal requirements (SOP / BWL / PPL) dated February 5, 2010. This procedure contains about: - Mechanism to identify, define and get the laws and regulations in respect of the principles and

criteria for sustainable palm oil production. - Procedure to manage tasks and responsibilities of each section in respect of regulatory

compliance mechanism. - Mechanism to maintain updated laws and regulations by developing relationship and monitoring

the activities of the institution / agency issuing the relevant regulations. To ensure the company compliance with the updated laws and regulations, updating was conducted on annual basis.

- Control of documents, which is performed by the Document Control Unit available in each unit coordinating with regional document controllers.

The company has a mechanism of evaluation of compliance with applicable laws and regulations as well as legal requirements in the form of a documented List of Regulations & Compliance of PT Buana Mas Wiralestari. This document includes a list of rules, related articles, level of compliance, and evidence of its fulfillment. However, not all relevant articles that have been evaluated in terms of the compliance level; the company is recommended to evaluate all articles of the laws and regulations for which the company shall comply with. The Non conformance of this indicator is CFA-2010.04

X

ST2 There is documented Evaluation of Company’s Compliance with Laws, Regulations and other Legal Requirements, which details types of regulations evaluated, description of articles of the evaluated regulations and company’s implementation/documentation of the regulatory compliance, for example: Law no. 32 of 2009 on Environmental Protection containing articles 22, 31. 34, 36, 59 in respect of Estate Operational Activities. The Non conformance status of CFA-2010.04 is declared as closed

√

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

2.2.1 Documents showing legal ownership or lease of the land in accordance to relevant laws.

ST1 1. Decree of the Minister of Forestry of RI No. 248/Kpts-II/1991 dated May 6, 1991 on Forest Area Release.

2. HGU Certificate No. 03 dated 28 September 1994, which is supplemented with a Special Site Map No. 09/1991 dated June 11, 1991 with a total area of 2,196.27 hectares situated at Petapahan Village.

3. HGU Certificate No. 149 dated January 30, 2001 equipped with Land Survey Document No. 01/18.01/2001 dated January 30, 2001 and Site Map dated December 6, 1999.

4. Documented release of land right; Release of Land Rights by Fauzi, a resident of Petapahan village to the company on 2 September 1996 with a total area of 60,000 m2 for Rp. 3,000,000.

5. Documented Transfer of Land which was witnessed by Land Agency Head of Kampar District,

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ASSESSEMENT REPORT


Assistant I of Kampar Regent’s Office, local Sub district Chief and village chief. 6. Documented inventory of land, crops and other efforts in the framework of land clearing in

Petapahan village that have been approved by; Owner / tenant of land, Land Agency Head of Kampar District, Officer of Kampar Regent’s Office, Officers of Regional Plantation Office, Sub district Officers and Village Officers.

7. For scheme smallholder, a Statement Letter on Land Release and payment receipt of compensation for land.

ST2 In additional to documents seen at ST1. 1. HGU Certificates; Rama Rama Estate

√

; a. HGU Certificate No. 03 dated 28 September 1994, equipped with Special Sitemap No.

09/1991 dated June 11, 1991 with a total area of 2,196.27 hectares located at Petapahan Village, whose validity term has been extended up to January 30, 2089

b. HGU Certificate No. 149 dated January 30, 2001 equipped with land survey certificate No. 01/18,01/2001 dated 30 January 2001 and Sitemap dated December 6, 1999 with a total area of 1,844.07 ha. The validity term of this HGU Certificate has been extended up to January 30, 2096 (Renewed on 23 February 2005, DP. No 1684/2005; Warkah No. 06/II/KPR/2005)

c. HGU Certificate No. 05 dated March 17, 1998 equipped with land survey certificate No. 1553/SLN/1998, dated March 17, 1998 and Sitemap dated December 27, 1997 with a total area of 51.6 Ha. Valid until March 17, 2083.

2. There are 2 types of compensation, they are; a. Compensation for Land with Crops for proposed Scheme smallholder area, landowners

are included in the Pir-Trans program to obtain 2 hectares of palm oil estate area. There is Land Release Statement Letter and compensation payment receipt, for example: Abdul Majid, a resident of Petapahan Village who has received compensation from the company amounting to Rp. 183,000.00 for his transfer of 20 pcs of fruit trees and 10 pcs of Gajus crop on an area of 2 hectares. The document is attached with Land Release Statement Letter, Compensation Payment Receipt, and Crop Checking conducted on March 12, 1991.

b. Compensation for land designed for nucleus plantation, as indicated by the Land/Crops Release Statement Letter and Compensation Payment Receipt, for example, compensation paid by the company to Fauzi for a plot of land with a total area of 30,000 m2 situated at Petapahan Village, Siak Hulu Sub district, for Rp. 3,000,000.-, witnessed by the Land Office Head of Kampar District, Assistant I of Kampar Regent’s Office, Siak Hulu Sub district Chief and Petapahan Village Chief. This document contains a Land/Crops Release Statement Letter dated September 2, 1996, Compensation Payment Receipt dated 2 September 1996 and a List of Inventory of Land, Crops, and other Business in the framework of the Land Clearing.

3. Decision No. 525/238/Pem-Um/1991 of Kampar Regent dated May 14, 1991 on the Recommendation in the name of PT Ramajaya Pramukti and PT Wira Buana Lestari to obtain Land Exploitation Right (HGU) states that PT Ramajaya Pramukti situated at Petapahan Village has settled the first phase of land compensation amounting to Rp. 58,267,775.- for 209 plots of land, PT Buana Wira Lestari situated at Sekijang Village has settled the first phase of land compensation amounting to Rp. 38,422,677.50 for 140 plots of land.


ASSESSEMENT REPORT


2.2.2 Evidence that legal boundaries are clearly demarcated and visibly maintained.

ST1 There are legal evidences of HGU area boundaries issued by BPN, as follows; 1. Land Survey Certificate No. 01/18.01/2001 with a total area of 1,844.07 hectares situated at

Petapahan Village dated January 30, 2001 and Sitemap dated December 6, 1999 (Appendix to HGU No. 149).

2. Special Sitemap No. 09/1991 dated July 11, 1999 with a total area of 2,196.27 hectares for HGU Certificate No. 03 dated 28 September 2004.

There is documented boundary poles maintenance plan, but based on the field visit, the audit team found that BSN 15 Poles (in Rama Rama Estate) are not well maintained. The Non conformance of this indicator is CFA-2010.05

X

ST2 Evidence - evidence of areal brick sign legal form: 1. HGU Certificates;

Rama Rama Estate

; a. HGU Certificate No. 03 dated 28 September 1994, equipped with Special Sitemap No.

09/1991 dated June 11, 1991 with a total area of 2,196,27 hectares located at Petapahan Village, whose validity term has been extended up to January 30, 2089

b. HGU Certificate No. 149 dated January 30, 2001 equipped with land survey certificate No. 01/18,01/2001 dated 30 January 2001 and Sitemap dated December 6, 1999 with a total area of 1,844.07 ha. The validity term of this HGU Certificate has been extended up to January 30, 2096 (Renewed on 23 February 2005, DP. No 1684/2005; Warkah No. 06/II/KPR/2005)

c. HGU Certificate No. 05 dated March 17, 1998 equipped with land survey certificate No. 1553/SLN/1998, dated March 17, 1998 and Sitemap dated December 27, 1997 with a total area of 51, 6 Ha. Valid until March 17, 2083.

2. There is a documented Boundary Area Poles Maintenance Work Plan 2010/2011, which contains HGU boundary poles maintenance program prepared by PIC RSPO and validated by SEM RRME, covering;

a. Regular checklist conducted on a monthly basis. b. Incidental repair of poles, which is carried out only if there are damaged poles. c. Incidental painting of poles, which is done for any HGU poles that have been repaired

and those HGU poles with invisible color. d. HGU Poles Site Cleanup, which is done once every four months.

3. Based on the field visit to HGU Poles No. 10 - 15 (HGU No. 149 of 2001), which is the boundary area between the company’s estate and community land, the audit team found that the HGU Poles are well maintained and clearly visible. The Non conformance status of CFA-2010.05 is declared as closed.

2.2.3 Where there are, or have been, disputes, proof of resolution or progress towards resolutions processes acceptable to all parties are implemented.

ST1 Based on information from Mr. Vishnu O. Suharto, a Legal Section Staff, the company never encounters a land conflict. √

ST2 Based on information from Imran S. Hut, he said that the company never encounters land conflict with the local community. Based on interview with community leaders and Petapahan Village Chief (original village) and Sei Lembu Makmur Village Chief (trans-migrant village), they stated that up to the implementation of the ST 2 audit, they never find land dispute between the company and the local community. All residents have

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ASSESSEMENT REPORT


been fully aware to boundaries between their own land and the company’s land and based on field visit, HGU Boundary Poles No. 10-15 within HGU No. 149 of 2001, which is boundary between local people’s and company’s lands, are well maintained and visible.

2.2.4 Evidence of legal acquisition of land with free prior and informed consent

ST1 There is a full documented land acquisition process in the company’s legal documents containing the Farmer’s Land Release Statement Letter, Minutes of Land/Crops Acquisition in Patapahan Village and Land Compensation Payment Receipts for each land owner, witnessed by Land Office Head of Kampar District, Assistant I of Kampar Regent’s Office, Siak Hulu Sub district Chief and Petapahan Village Chief.

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ST2 In additional to documents seen at ST1. For example: Abdul Majid, a resident of Petapahan Village who has received compensation from the company amounting to Rp. 183,000.00 for his transfer of 20 pcs of Jengkol crop and 10 pcs of Gajus crop on an area of 2 hectares. The document is attached with Land Release Statement Letter, Compensation Payment Receipt, and Crop Checking conducted on March 12, 1991; compensation paid to Fauzi for a plot of land with a total area of 30,000 m2 situated at Petapahan Village, Siak Hulu Sub district, for Rp. 3,000,000.-, witnessed by the Land Office Head of Kampar District, Assistant I of Kampar Regent’s Office, Siak Hulu Sub district Chief and Petapahan Village Chief. This document contains a Land/Crops Release Statement Letter dated September 2, 1996, Compensation Payment Receipt dated 2 September 1996 and a List of Inventory of Land, Crops, and other Business in the framework of the Land Clearing.

√

2.2.5 A mechanism to resolve conflict which is accepted by all parties.

ST1 There is documented land conflict resolution mechanisms (SOP / CPR / PKL) dated February 5, 2010

involving the parties in conflict resolution. √

ST2 In additional to documents seen at ST1. Which details that in case of land conflict the company may request the local authority to provide assistance / facilitation that may involve Community Leaders, Village Chief, Sub district Chief, regent, NGO and Local Parliament. The agreement reached should be documented in the form of a Minutes of Agreement as evidence of an agreement between the parties.

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

2.3.1 Records of any negotiated agreements between traditional owners of land and plantation companies (if any), supplemented with maps in appropriate scale

ST1 Not Applicable; Based on information from Mr. Vishnu O. Suharto, there is no traditional right within the working area of PT RJP. Based on interview with Community Leader of Petapahan Village, he said that there is no traditional right within the working area of PT RJP.

N/A

ST2 Based on interviews with community leaders and Petapahan Village Chief, who is a Community Leader of Petapahan Village, he said that there is no traditional right within the working area of PT RJP. N/A

2.3.2 Maps of any appropriate scale showing extent of recognized customary rights.

ST1 Not Applicable; See indicator 2.3.1 above N/A


ASSESSEMENT REPORT


ST2 Not Applicable; See indicator 2.3.1 above N/A

2.3.3 Copies of negotiated agreements detailing process of consent.

ST1 Not Applicable; See indicator 2.3.1 above N/A ST2 Not Applicable; See indicator 2.3.1 above N/A

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.

3.1.1 A documented working plan of the company for a minimum of 3 years period.

ST1 The company has prepared a Long Term Work Plan of PT Ramajaya Pramukti Period 2010 to 2017. This document was still in the form of a draft that has not been approved by the top management, and the company is recommended to approve its long-term work plan. This document covers: production forecast, FFB cost, Mill cost, palm product cost / kg, mill product recapitulation (OER and KER), and other financial parameters. This will be verified further during the Stage-2 activity. The Non conformance of this indicator is CFA-2010.06.

X

ST2 In additional to documents seen at ST1. The company has ratified the Long Term Work Plan of PT Ramajaya Pramukti Period 2010 to 2017 which consists of production forecast, FFB cost, Mill cost, palm product cost / kg, mill product recapitulation (OER and KER), and other financial parameters. This document was ratified by CEO PSM 5 (Franciscus Costan).The Non conformance status of CFA-2010.06 is declared as closed.

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3.1.2 Annual replanting program, where applicable, projected for a minimum of 5 years with yearly review.

ST1 Replanting policy set by the company referred to SMA/MCAR/01/05-07 on planning and planting, namely: plant age > 25 years, height> 13 m, annual production capacity < 14 tons / ha, and the number of palm oil tree <100 trees / ha. The company has established replanting program to be carried out in 2017. But the audit team did not find documented annual evaluation of the program; the company is recommended to provide evidence of the annual evaluation of the program. The Non conformance status of this indicator is CFA-2010.07.

X

ST2 While the stage-1 activity was being done, the company already had replanting plan which will be done in 2017. This replanting program plan is still a plan submission from estate management unit and has not been validated by the top management. While the stage-2 activity was being done, replanting plan was reviewed with the result of the change of the year of program 2017 revised 2016. This change of plan was the result of annual study which has been done by the company related to replanting activity. The study itself was done based on criteria of plants age, plants length and production estimation (in accordance with one of the replanting criteria in existing SOP). The Non conformance of CFA-2010.07 is declared as closed.

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ASSESSEMENT REPORT


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

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

4.1.1 Standard Operating Procedures (SOPs) for estates, from land clearing to harvesting.

ST1 There is SOP Estate in the form of Technical Guidance for Palm Oil Cultivation, prepared by MCAR (Management Committee Agronomy and Research) team and ratified on May 5, 2007. The SOP consists of: - Introduction (SMA/MCAR/00/05-07) - Plant Planning (SMA/MCAR/02/01/05-07) - Seedling (SMA/MCAR/02/05-07) - Preparation before planting (SMA/MCAR/03/05-07) - Bridges and Roads (SMA/MCAR/04/05-07) - Land Opening and Planting (SMA/MCAR/05/05-07) - Pests, Diseases and Weeds Control (SMA/MCAR/06/05-07) - Fertilization (SMA/MCAR/07/05-07) - Maintenance of TBM (SMA/MCAR/08/05-07) - Pre-harvesting activities (SMA/MCAR/09/05-07) - Maintenance of TM (SMA/MCAR/10/05-07) - Harvest and Transportation (SMA/MCAR/11/05-07) - Environmental Management (SMA/MCAR/12/05-07) Based on field observation, the SOP Estate has been distributed to each estate unit and understood by workers.

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ST2 Similiar to stage-1 audit √

4.1.2 Standard Operating Procedures (SOPs) for mills, from reception of FFB to dispatch of Crude Palm Oil and Palm Kernel Oil.

ST1 The company has SOP Mill in the form of documented SOP for Palm Oil Mill Management of PT SMART Tbk, but it does not specify supply chain procedure in the process from FFB acceptance to CPO dispatching, because there are mill units that receive the supply of fruit outside the scope of certification. Example: fruit acceptance procedure in Kijang Mill, which receives a supply of FFB from the smallholder scheme. The company is encouraged to review its SOP Mill and specify the product supply chain mechanism starting from FFB acceptance to CPO dispatching processes, for estate units that receive FFB outside the scope of certification. The Non conformance of this indicator is CFA-2010.08

X

ST2 The company has established SOP Supply Chain of PT Ramajaya Pramukti (SOP / CPR / SC), which was ratified on July 12, 2011. This procedure describes the recording mechanism of fruit receipt (either from the nucleus or Scheme smallholder estate), processing, storage and CPO and palm kernel in tanks, and shipping of products (CPO and palm kernel) to Dumai Bulking station. This procedure also establishes the supply chain system that is applied based on the Mass Balance principle. The Non conformance status of CFA 2010.08 is declared as closed

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ASSESSEMENT REPORT


4.1.3 Records of checking or monitoring of operations. Minimum requirement: once a year.

ST1 - There is data of periodical inspection by the Agronomy Audit Advisory and Mill Audit Advisory Audit Advisory at least 2 times a year that cover assessment of technical aspects of cultivation, mill performance and warehouse inspection. The previous AAA audit was conducted on April 18, 2010 with inspection of Warehouse and estates. Matters highlighted in the audit are; a) arrangement of goods is not neat, b) leakage of diesel fuel tank, c) POME Application Monitoring, and d) organic fertilizer application monitoring.

- There is data of implementation of periodical Internal Audit done two times a year that covers assessment of administration, financial, production and crop treatment aspects.

- There is data of Region Control (RC) and Vice President Advisory (VPA) Visits conducted routinely six times a year.

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ST2 In additional to documents seen at ST1. The company has a mechanism for checking or monitoring the operational activities as follows: - Operations Internal Audit (OIA). The scope of this OIA activities are: administration of cash in bank

and memorial, inventory, maintenance of crops and estate environment, crop production, wage and human resources. This audit is conducted by Internal Audit Department on semester basis. Last audit took place on February 7, 2011.

- Internal Audit related to the implementation of RSPO principles and criteria. Last assessment was conducted on February 12, 2011. For internal audit RSPO, the company has planned to be conducted at least once a year.

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4.1.4 Records of operational results.

ST1 The company’s operating results are recorded in the estate daily, monthly and annual reports covering production, plant maintenance, pests and diseases Census, Tyto alba monitoring, and fertilization activities. In respect of production activities, the Estate has a record of production of FFB in the form of “Daily Estate Production Report” that entails number of block, number of working days (WD) and the FFB production volume. For example: RRME estate production report for September shows that in total production volume in Complex D01 was 22,606 bunches, required time was 230.6 working days and average weight of bunch was 22.33 kg.

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ST2 The company has records of estate and mill operational activities. For example: - Record of operations in Rama Rama Mill is in the form of Monthly Processing Report that includes:

FFB Intake Statement, Production Record, production & extraction statistical summary, production stock, monthly report summary, monthly laboratory report, water treatment & Boilers chemical, ripple mill efficiency, staffs and SKU labors, etc..

- Record of operations in Rama Rama Estate is in the form of Agronomy Monthly Report that includes: TBS safety report, estate safety report, Security Guard Report, Palm Oil Seed Receipt Report, Seeding and Insertion report, Order and Supply of Fertilizers, fertilizer application, empty bunch application (JJK), Liquid Waste Application, Monitoring, Tyto Alba, Utilization of Heavy Equipment, Non-Crop Planting, Working day, Man Power, Fertilizer Spreader, Progress of Land Clearing, and Progress of Planting.

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

4.2.1 Records of regular soil, leaf and visual analysis.


ASSESSEMENT REPORT


ST1 The company has a documented data of soil analysis for each estate carried out every 3 (three) years. For example: Land Suitability Class documents of Rama Rama Estate - PT Ramajaya Pramukti, Regional Kampar Buana - PSM V, Kampar District, Riau Province, Edition 2010, prepared by Plantation Monitoring and Planning Division, March 2010. There is also a documented Leaf Analysis Summary LSU Rama Rama Estate conducted once every year. Parameters tested include: levels of N, P, K, Mg, Ca, and B. This will be verified further in the Stage-2

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ST2 The company has a documented data of soil analysis for each estate carried out every 3 (three) years. However, based on information from a staff of SMARTRI (Smart Research Institute), the soil analysis is conducted once every 5 years and adjusted to the planting year. This change in frequency of soil analysis is intended to have more effective and better monitoring of soil fertility. The soil analysis record covers analysis of physical (texture) and chemical soil fertility, such as: pH, C-organic, N total, reserved elements of P and K, availability of P element, Cation Exchange Capacity (CEC), etc.. Soil sampling was conducted in accordance with standard operating procedures (Work Instructions of Soil Sampling Unit, where 1 soil sampling unit represents 60 hectares. From 1 soil sample unit, the sampling was done at 3 sampling points each point consists of 15 point samples. The company has also conducted periodical leaf analysis. Leaf analysis is done every once a year. Leaf sampling unit was conducted in accordance with the sampling method of soil analysis.

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4.2.2 Records of efforts to maintained and increase soil fertility (e.g. the use of fertilizer, legume cover crops, compost, and land applications of POME or EFB) based on the results of analysis carried out as in point 1 above.

ST1 There are the following documents: - Documented soil fertilization plan and realization titling Material Requirement Program: Quantity of

Fertilizer of Producing Crop Semesters 1 and 2. - Recommended Fertilization Document 2010. The recommended fertilizers include: Urea, RP,

TSP, MOP, S. Dolomite, Kieserite Powder, Kaptan (agriculture Calcium/CaCO3 √ ), HGFB, CuSO4, ZnSO4, and MnSO4. Each of the fertilizers is applied two times each year. Mechanical fertilizing application uses tractor.

- Empty Bunch Application Work Plan 2010. The dose is 60 ton/ha/2 years - Rama Rama Estate’s Land Application Plan 2010. This will be further verified in the Stage-2.

ST2 The company has records of fertilization, empty bunch application and land application activities in Rama Rama Estate. These activities are done based on the soil analysis result and marginal land map of the company. All of the activities are well-documented. For example: - Records of empty bunch application in Block A3 of Rama Rama Estate, with a dose of 60 tons / ha. - Records of the realization of fertilization in Block B1 of Rama Rama Estate first and second

semester using urea, dose is 1 kg / tree with an area of 19.17 ha. Realization of fertilization was 4.76 tons.

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4.3 Practices minimize and control erosion and degradation of soils.

4.3.1 Maps of fragile soils must be available.

ST1 The company already has land map for each estate being an integral part of the Land Suitability Class Document of Rama Rama Estate - PT Ramajaya Pramukti, Regional Kampar Buana - PSM V, Kampar District, Riau Province, Edition 2010. This will be further verified in the Stage-2.

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ASSESSEMENT REPORT


ST2 In additional to documents seen at ST1. The document contains the following information: land suitability class, slope, texture, limiting factor, extent and classification of land. The land map is in a scale of 1: 50,000 and equipped with legend. For example in Rama Rama Estate SPT 5: The type of soil is Types Dystrudepts; slope: 3-9%; depth (solum): > 120 cm; good drainage; land suitability class: S3 (marginal); limiting factors: fertility; area size: 2,162.30 ha (53% of the total area).

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4.3.2 A management strategy should exist for plantings on slopes above a certain limit (needs to be

soil and climate specific).

ST1 Slope management strategy carried out by the company consists of building a horse path (individual terrace). The document which explains this method is the SOP for Preparations Before Replanting (SMA/MCAR/03/05-07) which refers to Table 3.1.1 of Terrace Requirements and Inclination Classification. Recommendations are given to replanting on slope with 9 – 40% of inclination. Areas with more than 40% of inclination are not recommended for replanting. To be verified in Stage-2.

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ST2 In additional to documents seen at ST1. The Company has a land erotion rate monitoring program. The Company has placed a land erosion rate monitoring stake at block D26 (based on the result of analysis between land suitabilityandidentified marginal land map and the inclination class of 21-40%. The stakes were installed in July 2011. The measurement of land erosion rate was scheduled for execution and evaluation in September 2011 and shall be conducted routinely once every month. Furthermore, the Company has also planted erosion-prevention plants such as bamboo, vertiver grass and guatemala. The Company has also applied terrace, silt-pits and horse path methods. Based on field trip to the Block (D26 5th Division of Rama Rama Estate), the Company has specified land management strategy with a certain degree of inclination such as terrace construction, arrangements of midrib on the edge of terrace, monitoring of land erosion rate, and Replanting of erosion prevention plants on roadside.

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4.3.3

Presence of road maintenance program.

ST1 The Company has a road maintenance program. To be verified during Stage-2. √ ST2 The Company has a road maintenance program in the form of road reinforcement plan in 2011. The

road reinforcement plan uses sand stone application on collection roads and main road. The document contains information on road maintenance area, land area, length, volume and cost. For example, the 1st Division of Rama Rama Estate has 769.59 ha of land area with 30,500 meters of road length and 101.88 m3 of road materials volume and total grand cost of IDR 10,188,000.

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4.3.4

Water surface level on peat land programs is available to minimize the soil decrease of peat land.

ST1 To be verified during Stage-2 √ ST2 Based on the result of land suitability class identification, there is no peat moss area at Rama Rama

Estate. √

4.3.5 A management strategy should be in place for other fragile and problem soils (e.g. sandy, low

organic matter, acid sulphate soils)

ST1 Refer to indicator 4.3.2; Erosion control program; √


ASSESSEMENT REPORT


a. Erosion control Replanting Plans at Rama Rama Estate from September to December 2010: − 20 Blocks in 5 Division I. − Replanting of bamboo trees and vertiver grass.

b. Realization of vertivergrass replanting for the period of 2008 – 2010 in 5 divisions. c. Installation of soil support to prevent erosion. d. Usage of used sacks to stop band the water barricade on the water line. e. Implementation of midrib arrangements on hillsides to reduce water flow rate. f. Creation of silt-pits.

To be verified during Stage-2. ST2 Based on the result of identified land suitability class in Rama Rama Estate work area, the majority of

soil has sandy clay texture. As such, the Company has made attempts to apply fertilizer in identified sandy areas with low organic content (refer to indicator 4.2.2). Erosion control program is available for 2011. Example: bamboo, vertiver grass and Guatemalan grass Replanting program. The program is compiled for all divisions at Rama Rama Estate. The vertiver grass is planted in June 2011 at the 5th division with a total length of 720 meter.

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

4.4.1 Protection of water courses and wetlands, including maintaining and restoring appropriate

riparian buffer zones at or before replanting. ST1 The company has made the attempts to protect the water flow and wetlands, including the river

terracing, through the management’s policy based on Vice President Agronomy’s Circulation PSM 5 (Letter Number 002/SE-VPA-5/RSPO/BWL/01/2010) dated 5th of January 2010 on the Management of around the river flow area. The content of letter regulates the cultivating techniques for plants commonly found in the river basin area, namely 5 palm oil trees on the left and right side of the river, based on the following principles: 1) Plants are not maintained using chemistry, but rather manually; 2) fertilization is not carried out mechanically (by plain or emdex), but manually; 3) cliffs prone to landslide are planted with land-stabilizing plants. To be verified in Stage-2

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ST2 In additional to documents seen at ST1. Based on field visits to Rama Rama Estate Air Jernih River, the company undertakes water flow protection attempts by managing the river terracing and planting land-stabilizing plants, restricting chemicals-related activities to the river flow area (5 shoots right and left of the river), manual maintenance for buffer zone area (50 meter to the right and left of the river) and posting warning signs.

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4.4.2 An implemented water management plan.

ST1 The water management program is carried out by the Mill using a water treatment method expected to

provide clean water for FFB processing at the mill and for supplying water to the employee’s household. The Company has inspected and tested the clean water once every 6 (six) months where the water sample is taken from the treated water (water which has undergone treatment at the mill’s water tank). The water sample is sent to the Water Quality Inspection Laboratory UPTD, Health Agency, Pekanbaru; the quality standard used in this test is based on the Minister of Health’s Regulation Number 416/1990 on Water Quality Requirements and Monitoring. Records on the result of water

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ASSESSEMENT REPORT


quality inspection on 22nd of February 2010 are available, covering parameters such as TDS, turbidity, color, iron content, hardness, chloride and sulphate content. The test result shows that the tested parameters have fulfilled the specified quality standard. The Company has also tested the well water quality around the application land area; this test is carried out once every 6 (six) months by the SMARTRI Analytical Laboratory, Libo Estate, Kandus, Siak District. This laboratory belongs to Sinarmas, a subsidiary of PT RJP. The SMARTRI lab is also accredited by the National Accreditation Committee since September 2006. Records on well water tests in the second semester of 2009 and first semester of 2010 are available. Tested parameters are based on the quality standards specified in the Government’s Regulation No. 82/2001. However, the company is not yet able to provide proof of evaluation on the well water quality tests. It is recommended that the company provide such evidence in accordance to the applicable quality standards. The Non conformance in this indicator is CFA-2010.09

ST2 The Company conducts water quality tests at the employee’s house from the drill well located around the house. Once every 6 months, the water quality is tested in accordance to the Minister of Health’s Regulation Number 416/1990 on the clean water requirements. The tested parameters include smell, turbidity, temperature, color, Total Dissolved Solids (TDS), chemical content and total coliforms. A record on drill well water quality inspection on 24th of May 2011 by the Water Quality Inspection Laboratory UPTD, Health Agency of Pekanbaru is available and the result shows that all parameters have fulfilled the quality standards. Monitored well quality test is carried out once every 6 months by the Laboratory UPTD of Riau Province Health Agency. The tested parameters are based on the Minister of Health’s Regulation Number 416/1990. The Company has evaluated the result of monitored well analysis specified in the POM Liquid Waste Application Execution Monitoring Report on Oil Palm Plantation Area (land application), second semester of 2010; this document is a form of report on land application performance to be reported to the Kampar District BLH once every 6 months. Based on such document, the monitored well water quality analysis has fulfilled the quality standards specified by the regulation. The Non conformance status of CFA-2010.09 is declared as closed.

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4.4.3 Monitoring of effluent BOD

ST1 The liquid waste BOD monitoring is stated once every month. Waste sample is taken from the waste pond in the Waste Water Processing Facility (IPAL) and from the application land pond in the Estate area. The waste water test is carried out by the SMARTRI Analytical Laboratory, Libo Estate, Kandus, Siak District. This laboratory belongs to Sinarmas, a subsidiary of PT RJP. The SMARTRI lab is also accredited by the National Accreditation Committee since September 2006. The BOD monitoring records for the period of January-October 2010 is available; The tested parameters include pH, TS, BOD, COD, VFA, TA, N, P, K, Mg, Ca, Cu and O&C. The quality standard used is the Governor’s Regulation Number 35/2007. However, the proof of evaluation on the monitoring of BOD on the mill’s liquid waste in accordance to the quality standards specified by the regulation. We recommend the company to conduct evaluation on waste water quality monitoring data, notably the parameters tested in accordance to the specified quality standards. The non-conformance in this indicator is CFA-2010.10.

X

ST2 The Company has monitored the liquid waste quality flowed to the Application Land every month. The result of BOD monitoring on the liquid waste for the January - December 2010 and January - June 2011 periods is available. Based on the result of such test, the BOD parameter does not exceed the quality standard specified by the regulation (Minister of Environment’s Decree No. 28 and 29 of 2003).

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ASSESSEMENT REPORT


For example: - The result of BOD test in April 2011 shows 1,363 mg/L - In May 2011, it was 4,301 mg/L - In June 2011, it was 4,980 mg/L

The quality standard specified by the regulation is 5,000 mg/L. Evaluation on result of waste water BOD monitoring is stated in the Waste Water Application Monitoring on Palm Oil Plantation Report in the second semester of 2010; this document is a report of land application delivered to the Kampar District BLH once every 6 months. Based on that document, the result of waste water BOD monitoring shows that it has fulfilled the quality standard specified in the regulation. The non-conformance status of CFA-2010 is declared as closed.

4.4.4 Monitoring of mill water use per tonne of FFB

ST1 Records on the monitoring of mill water usage are available as follows: Recapitulation of Water Usage and Distribution in 2010 for January - September 2010. The monitoring of water usage in m3/ton of TBS; and the company has allocated a budget for this purpose. However, there is not enough evidence that the monitoring of water usage has been evaluated based on the allocated budget. The company is recommended to evaluate the result of water usage monitoring. The non-conformance in this indicator is CFA-2010.11.

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ST2 Monitoring of water usage for the mill is carried out every day, which is then recapitulated in one month. The records of water usage monitoring for the Mill is available in the form of 2011 Water Distribution and Usage Recapitulation Document; based on the monitoring data, the average usage of water at the mill has exceeded the allocated budget. For example: the water usage in April 2011 is 2,175 m3/ton of TBS (allocated budget is 1,362 m3/ton of TBS); in May 2011 it is 2,072 m3/ton of TBS (allocated budget is 1,286 m3/ton of TBS); and in June 2011 it is 1,599 m3/ton of TBS (allocated budget is 1,205 of m3/ton of TBS). The company has evaluated the data as follows: the causes of excessive water usage budget consist the fact that the number of processed fruits are below budget standards, increasing number of employees using water for their domestic households, and Boiler operations out of processing hours to support the KCP (Kernel Crushing Plant) station. However, the Company has made attempts to monitor water usage to reduce the amount of monthly usage, and has resulted in less water usage in June 2011 compared to in May 2011. The Company has made plans to conserve water in accordance to the specified budget. Such plans are realized in the form of Water Usage Action Plan, PT Ramajaya Pramukti – Rama Rama Mill & KCP. The steps consist of: socialization of water usage conservation, recycle of turbine cooling water to the dam for reusage at the mill, monitoring of water usage on a daily/monthly/annual basis, and recapitulation of domestic processing water usage separately. The plans are expected to be complete by August 2011. The non-conformance status of CFA-2010.11 is declared as closed.

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


ASSESSEMENT REPORT


4.5.1 An IPM plan is documented and current.

ST1 The company has a monitoring document of pests and diseases on a periodical basis. The common types of pests found in a plantation area are fire caterpillars and rats. The survey on rats existence is carried out once every 2 months. The company has used the Integrated Pest Control technique to prevent the spread of pests, diseases and parasites in order to reduce chemical usage. The pest and disease control program is performed naturally as follows: - Owls (Tyto alba) are introduced to control the population of rats. - Beneficial plants such as Turnera subulata and Antigonon leptosus which are hosts to the fire

caterpillar’s predator (Cikanus sp.) are planted throughout the plantation. Fire caterpillar’s detection is performed continuously as preventive action.

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ST2 Similar to stage-1 audit. √

4.5.2 Monitoring extent of IPM implementation including training.

ST1 − Fire caterpillars monitoring is carried out periodically once every 2 months. A recapitulation of

Rama Rama Estate (RRME) 2nd Division’s pest detection in 2010 is available, which states the date of census, level of invasion, area of invasion and block. In 2010, there were 470 heavy fire caterpillar invasions, whereas no attacks were recorded in March, May and July 2010.

− Owl monitoring (Tyto alba). Report on the development of Tyto Alba in September 2010 in the 2nd division of RRME shows 94 adult owls, 14 baby owls and 16 eggs.

Proof of Integrated Pest Control training is available in the form of Training Certificate number 230/TR-CPD/02/10 in the name of Ario Arlianto (I2 Division) and Nuryono (3rd Division. The training is carried out on 11th of February 2010 at RRME Employee Hall.

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ST2 Records on natural pest-control agency (Turnera subulata and Antigonon leptotus) throughout Rama Rama Estate in 2011 are available. In June 2011, the natural controller plants have been planted on six (six) locations on the entire block of Rama Rama estate. The company also reported owl usage (Tyto alba) until June 2011. The records provide information on the Division/estate, land area, target and level of barn owl activity. There are a total of 256 barn owls in Rama Rama Estate. 1 barn owl represents 15 ha of land area. A documentation of Integrated Pest Control Training is available in the form of Training Certificate Number 219/TR-CPD/02/10 in the name of Yos Laoli (Census Officer) carried out on 11th of February 2011 at the RRME Employee Hall.

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4.5.3 Monitoring of pesticide toxicity units (a.i. /LD 50 per tonne of FFB or per hectare).

ST1 Evidence of pesticide usage monitoring is available in the form of 2010 Rama Rama Estate (RRME) pesticide toxicity document which states the amount of active ingredients, total application and unit per TBS as follows: - Erkafuron, active ingredient Metsulfuron Methyl; active ingredient .6%; total application 16.65 liter; pesticide unit .0000001969 mg/ton of TBS – Roll up, active ingredient Isopropyl Amine Glyphosat 480 g/l; active ingredient .41%; total application 83.96 liter, pesticide unit .000067 mg/ton TBS – Rolixone, active ingredient Paraquat dichloride 276 SL; active ingredient .42%; total application 169.32 liter; pesticide unit .000000771 mg/ton of TBS.

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ST2 The Company has made attempts to monitor the pesticide toxicity. The record on 2011 Pesticide Toxicity Monitoring in Rama Rama Estate consists of: Rolixone .000188 mg/ton; Roll up .000000035 mg/ton; Ercafuron .00000024 mg/ton. The company also conducted analysis in relation to the pesticide toxicity monitoring every month.

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ASSESSEMENT REPORT


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 Company Type 1A or 1B, or are listed by the Stockholm or Rotterdam Conventions, growers are actively seeking to identify alternatives, and this is documented.

4.6.1 Evidence of use of only approved and registered agrochemicals permitted by the relevant authorities.

ST1 The Company was able to deliver a list of usage of approved agrochemicals as follows: − Roll up 480 SL. Active ingredients: Isopropylamia gliphosate 480 g/liter. Registration # RI

2133/4-2009/T. Valid until 30th of April 2014. − Rolixone. Active ingredient: Paraquat dichloride 276 g/liter. Registration # RI 2476/5-2006/T. Valid

until 27th of June 2011. − Ally 20 WP. Active ingredient: Methil metsulphurone 20%. Registration # RI. 1027/5-2004/T;

license valid until 14th

However, there was a pesticide with expired registration license used, namely Ally 20 WP which was valid until 14th of June 2009. The non-conformance in this indicator is CFA 2010.12

of June 2009.

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ST2 A list of pesticides used in Rama Rama Estate in 2011: 1. Erkafuron. Registration # R.I 2405/5-2006/T. Active ingredient: Metylmetsulfuron. License valid

until 27th

2. Rolixone. Registration # R.I 2467/5-2006/T. Active ingredient paraquat dichloride. License valid until 27

of June 2011.

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3. Roll up Registration # R.I 2133/4-2009/T. Active ingredient glyphosat. License valid until 30 of June 2011.

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In relation to audit findings on the usage of Ally 20 WP with an expired license during stage 1, the Company has presented evidence based on the 2010 Agriculture and Forestry Pesticide Book issued by the Licensing and Investment Center, Secretariat General of Ministry of Agriculture of Republic of Indonesia that the Ally 20 WP pesticide’s period has been extended up to 30

of April 2014.

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of April 2014. Based on the documentation of agrochemicals usage in Rama Rama Estate, the Ally 20 WP pesticide is no longer used since February 2010. The non-conformance status of CFA-2010.12 is declared as closed.

4.6.2 Records of pesticide use (including active ingredients used, area treated, amount applied per ha and number of applications).

ST1 To be verified in Stage-2. ST2 Records on pesticide usage in Rama Rama Estate in the form of agrochemical usage recapitulation.

For example: - Roll up; Dosage: .2421 liter/ha; active ingredient glyphosat; twice rotations a year; area of

application 3876.40 ha. - Rolioxone; Dosage .193 liter/ha; active ingredient paraquat; 1 rotation a year; area of application

3876.40 ha. - Erkafuron; Dosage : .022 liter/ha; active ingredient methyl metsulfuron; 2 rotations/year; area of

application 3876.40 ha.

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ASSESSEMENT REPORT


4.6.3 Documentary evidence that usage of agrochemicals is appropriate for the target species, given at correct dosage and applied by trained personnel in accordance to the product label and storage instructions.

ST1 List of pesticides used by each estate is available in accordance to the Government’s Regulation (Minister of Agriculture’s Regulation Number 07/2007) on restricted and limited usage of pesticides. The types of chemicals used by PT RJP: − Roll up 480 SL. Active ingredient Isopropylamia gliyphosate 480 g/liter. 2 rotations a year.

Registration # RI 2133/4-2009/T. − Rolixone. Active ingredient Paraquat dichloride 276 g/liter. 1 rotation a year. Registration # RI

2476/5-2006/T. − Starane 200 EC. Active ingredient Fluriksifir I-MHE 288 g/liter. 2 rotations a year. Registration #

RI 854/5-2004/T. − Erkafuron 20 WG. Active ingredient Methyl metsulfuron 20%. 3 rotations a year. Registration # RI

2405/5-2006/T. The Company has conducted training for spraying employees which include materials on how to handle pesticides, procedure for washing sprayer equipment and stockpiling packages. The training is attended by 37 participants. For special training for spraying force when using paraquat pesticide, refer to indicator 2.2.1

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ST2 The Company owns documentation of agrochemicals which provide information on targeted species and dosage used in Rama Rama Estate. For example : - Roll up; Dosage: .2421 liter/ha; active ingredient glyphosat; 2 rotations a year; area of application

3876.40 ha. Targeted weeds: narrow-leaf weeds. - Rolioxone; Dosage .193 liter/ha; active ingredient paraquat; 1 rotation a year; area of application

3876.40 ha. Targeted weeds: wide-leaf weeds and ferns. - Erkafuron; dosage: .022 liter/ha; active ingredient methyl metsulfuron; 2 rotations a year; area of

application 3876.40 ha. Targeted weeds: wide-leaf and wooded weeds. The Company has conducted training for sprayers, which include materials on how to handle pesticides, procedure for washing the spraying equipment and stockpiling packages. The training is carried out specifically for paraquat sprayers/refer to indicator 2.2.1

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4.6.4 Waste materials from agrochemicals including pesticides containers are properly disposed in accordance with laws and regulations.

ST1 Based on the waste management SOP (SOP/RJP/LBH) doc. RSPO-103 dated 5th of February 2010, the pesticide package waste is disposed of by burying them in the ground, but there is not enough evidence that the company has communicated with relevant institutions regarding the approval of used pesticides ground burial in accordance to the applicable regulations. The Non-conformance in this indicator is NC-2010.13.

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ST2 The Company has its own procedure for disposing used pesticide packages, namely the Waste Management SOP (SOP/RJP/LBH) legalized on the 5th

Findings on stage-1 activity are related to the management of used pesticides packages by burying it in the ground, the company has not buried used pesticide packages in the grounds since November 2010. The Company has also revised SOP (SOP/RJP/LBH 1

of February 2010. The SOP covers the B3 waste management, especially used pesticides packages, by burying it in the ground.

st

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revision) on waste management,


ASSESSEMENT REPORT


especially the used pesticides package waste. The SOP states that the company no longer buries the used pesticides packages, instead returns it to the agrochemical vendor/supplier. The SOP is revised and legalized on the 1st of November 2010 by VPA, VPM, RC and PC. Letter of delivery of used pesticides packages waste is available for erkafuran pesticide (24 cans) and Rolixone (68 pcs) for June 2011 period. The waste is sent to PT Ivomas Tunggal (Libo Estate) which will be sent to the supplier. According to the information presented by one of PT RJP’s staff, waste is delivered to Libo Estate because the supplier wishes to accumulate the waste on one point in every province. The Non-conformance status of NC-2010.13 is declared as closed.

4.6.5 Documentary evidence that use of chemicals categorized as World Health Company Type 1A or 1B, or listed by the Stockholm or Rotterdam Conventions, and paraquat, is reduced and / or eliminated.

ST1 Refer to Indicator 4.6.1. The company has presented a list of chemicals used in accordance to the Government’s Regulation (Minister of Agriculture’s Regulation No. 07/2007) on the use of limited and restricted pesticides. At the moment (October 2010), the Company is using Rolixone pesticide (active ingredient Paraquat). There is a commitment to reduce Paraquat pesticides by 25% each year in accordance to the Vice President of Agronomy’s Policy on 5th

√

of January 2010. ST2 The Company is still using pesticides with paraquat active ingredient. In relation to paraquat

chemicals, the Company has made the following attempts: 1. The company has its policy on reduction of paraquat pesticides by 25% per year, issued by the

Vice President of Agronomy PSM 5 on 5th

2. Records on limited pesticide usage such as paraquat from 2008 to 2011 in Rama Rama Estate are available. Total usage of pesticides with paraquat active ingredient is 2,071.8 liter in 2008, 2,367.9 liters in 2009; 1,835.6 liter in 2010, and 749.3 liter up to June 2011. The Company has evaluated the usage of paraquat. The increase in paraquat usage in 2009 compared to in 2008 was due to the addition of usage rotation to counter the fern weeds in plantation areas.

of January 2010.

3. The Company has also trained the usage of limited pesticides such as paraquat on 8th

√

of February 2011 at Naga Sakti Estate Junior High School Building in cooperation with the Pesticide Commission/Riau Plantation Agency, attended b 60 participants from 5 estates (12 from each estate).

4.6.6 Records of the results of health check-up for those who apply agrochemicals.

ST1 The result of health examination on site employees who are exposed to high level of risk is available in PT RJP’s employee inspection document at the Central Clinic. Routine health examination on sprayers, warehouse and fertilizer workers is carried out once every 4 months in April, August and December in accordance to the Regional Controller’s Letter of Circulation Number 01/SE/RC-Kampar/Jan/2010. Example of examination report: latest examination was carried out in August 2010 on Risma S, 41 yrs old, good health. Health examination at the Hospital is carried out upon reference from the company’s clinic.

√

ST2 In additional to documents seen at ST1. Last examination is carried out in August 2010 at the Rama Rama Estate central clinic. Health examination on the sprayers is carried out by checking on blood pressure, pulse/heart rate, body weight, height and general health parameters. Example of health examination: Mrs. Elisabet, age 31, body weight 56 kg, height 160 cm, blood pressure 110/70 mmHg, pulse/heart rate 80 with good

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ASSESSEMENT REPORT


general health parameters. Health examination does not come down to blood and urine tests for sprayers. However, the company has a program for including blood and urine tests as part of the next employee health inspection (August 2011 and the next).

4.6.7 Records showing that no work with pesticides for pregnant and breastfeeding women.

ST1 Report on the Result of Health Examination on sprayers and monitoring pregnant workers in Rama Rama Estate (RRME). Based on the record, no pregnant or lactating employees were spraying pesticides.

√

ST2 In additional to documents seen at ST1. The Company has monitored female sprayers’ pregnancy through pregnancy examination for female employees. Based on the result of examination, no female workers were pregnant or lactating when working with agrochemicals. The company has also conducted socialization related to chemicals through socialization carried out every morning by the assistant during the morning briefing. Based on result of field trip at Block C-6 and C-7, sprayers (especially female workers who have understood the company’s policy on restrictions of pregnant or lactating female workers from chemicals-related works. The audit team also interviewed the plantation doctor (dr. Mahadi Damanik), who explained that health examinations on sprayers is carried out regularly once every 4 months. Female sprayers are also examined in terms of pregnancy and lactating period.

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

4.7.1 Evidence of a documented occupational safety and health (OSH) policy and its implementation.

ST1 The Company has Work Safety and Health Policy for Rama Rama Estate. Based on the result of field observation by audit team, the policy has been implemented by all workers; as a proof of such attempt, Nagasakti Mill has also implemented and obtained the Work Safety and Health Management System certificate (SMK3) from the Minister of Manpower and Transmigration of Republic of Indonesia. To be verified during Stage-2.

√

ST2 The Company has compiled a Work Safety and Health Policy for Rama Rama mill on 5th of January 2008. The policy has been socialized and implemented. The Company has also implemented the Work Safety and Health Management System (SMK3) and acquired SMK3 certificate on 4th of May 2010 (certificate number 0121/SUCOFINDO/2010) from the Minister of Manpower and Transmigration of Republic of Indonesia. Estate company is also equipped with a Work Safety and Health Policy legalized on 1st

√

of March 2010, which consists of responsibilities of leaders and employees in planning, disseminating, cooperating, reporting and implementing Work Safety and Health within the Company’s premises.

4.7.2 Responsible person for health and safety programs are to be identified and records of regular meetings to discuss health, safety and welfare issues must be kept.

ST1 The company has assigned a person responsible for the Work Safety and Health program, who serves in the Work Safety and Health Mentoring Committee (P2K3) of PT Ramajaya Pramukti – Rama Rama Mill. P2K3 has been legalized by the Department of Manpower and Transmigration by the Manpower Agency of Kampar District’s Decree Number KPTS.700/DSTK-PMI/2010/02 on 1st

√

of April


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2010. The companyal structure consists of the Mentor, Chairman, Deputy Chairman, Secretary, Deputy Secretary, Evaluation Division, Monitoring Division, Research Division, Socialization Division and Health Division. Regular meeting by P2K3 is carried out every month as scheduled in the 2010 RRM-K SMK3 Work Program. The P2K3 meeting is documented in a minute as follows: - The P2K3 meeting in September 2010 was held on 20th of September 2010. The topics of

meeting included analysis on work results of every division, cleaning of B3 warehouse area, RSPO pre-audit preparations, RSPO document updates, and solar tank roof repairs. The meeting was attended by 15 people (list of attendance is available).

ST2 In additional to documents seen at ST1. The Company has revised the structure of P2K3 Rama Rama Mill based on the Head of Social and manpower Agency of Kampar District number KPTS.700/DSTK-PHI/2011/03 of 14th of March 2011. Some P2K3 personnel were replaced, namely the Head of Health Division and Head of Research Division. The 2011 Rama Rama Mill P2K3 work program is available. The program includes the following activities: P2K3 meeting scheduled to be held every month; trainings related to Work Safety and Health (First Aid, Fire Fighting, etc.) once every year; health examination on every employee by the company’s doctor scheduled to be held every month. Minute of P2K3 Meeting is available, for example: P2K3 Meeting July 2011 held on 7th of July 2011. The aspects discussed in the meeting are cleaning the mill area, review of all documents related to the implementation of RSPO and SMK3, processing control to prevent environmental damage. List of attendance is available. The company’s plantation has also established a Plantation P2K3 committee on 1st of April 2010, legalized by the Department of Manpower and Transmigration based on the Department of Manpower and transmigration’s Decree Number KPTS.700/DSTK-PHI/2010/08) on 1st of August 2010. However, the P2K3’s companyal structure in Rama Rama Estate proposed a change on 25th of February 2011, legalized by the Manpower Agency of Kampar District based on the Manpower and Transmigration Agency of Kampar District’s Decree Number KPTS 700/DSTK-PHI/2011/05) on 14th

- A meeting was held on 6

of March 2011. The companyal structure consists of: Mentor, Chairman, Deputy Chairman, Secretary, Deputy Secretary, Evaluation Division, Monitoring Division, Research Division, Socialization Division and Health Division. The Rama Rama Estate P2K3 Company has also made a program and held monthly meeting in 2011. The Minute of P2K3 Meeting of Rama Rama Estate is available as follows:

th

- Another meeting was held on 4

of April 2011, attended by 21 people who discussed the evaluation of Self Protection Equipment for harvesters and chemical sprayers.

th

- Another meeting was held on 8

of May 2011, attended by 20 people who discussed the evaluation and implementation of Self Protection Equipment and Light Fire Fighting Equipment.

th

√

of June 2011 attended by 21 people who discussed regular health examination on workers and the safety of work environment.

4.7.3 Provision for accident insurance for workers

ST1 Work accident insurance for workers in the form of JAMSOSTEK (Workers Social Warranty). Based on Rama Rama Mill employee data, 195 workers are registered as participants of JAMSOSTEK program (190 males and 5 females).

√

ST2 In additional to documents seen at ST1. Evidence in the form of list of workers who have participated in JAMSOSTEK is available along with √


ASSESSEMENT REPORT


the Workers Premium details stating that 157 full-time employees and 28 daily freelancers at the mill are registered as JAMSOSTEK participants. There are also evidences of JAMSOSTEK monthly premium deposit in the form of JAMSOSTEK fee recap for PT Ramajaya Pramukti, June 2011 period. The JAMSOSTEK deposit is handed over to the JAMSOSTEK Office of Pekanbaru Office, Riau province.

4.7.4 Regular health examination by a doctor for workers in station or exposed to high risk work.

ST1 Health Examination Report on Employees Working High Risk Jobs is available at the central clinic of PT RJP. Periodical examination is carried out every year on all workers, except for the WTP (water treatment plant) station workers who are subject to health examination once every 6 months. This will be verified during Stage-2.

√

ST2 Periodical health examination program is carried out by the company’s doctor for its employees every month. The result of health examination on 17th and 20th

√

of June 2011 by the Company’s doctor took place at the Rama Rama Estate clinic. 34 mill workers were examined; some of them had health complaints and were given medication as well as healthcare recommendations. Workers at the station who are exposed to excessive noise (such as in the engine room, boiler, etc.) underwent audiometric test examination on July 2011. Based on the test result, several employees were experiencing light conductive symptoms, especially the engine room and boiler operators. Recommendations given for the employees exposed to excessive noise consist of regular audiometric test (twice a year); and if the test result shows that the employee’s hearing is compromised, the employee shall be transferred to another division.

4.7.5 A documented risk assessment for Occupational Health and Safety (OHS).

ST1 Records on Risk Analysis at the Company consist of Identification on Source of Danger and Risk Control, which consist of work station, description of activity, hazard potentials, risk assessment, risk control and description column. The risk analysis document is reviewed once every year to see if the hazard potentials have been reduced and changes have been made to the risk analysis. Based on field trip, the team found that the permanent workers did not wear adequate Self Protection Equipments. For example: helmet for harvesters; even though the Company has explained that the self protection equipments recommendations for harvesters are based on the result of risk assessment. We recommend reviews on the risk analysis which has been compiled. This will be verified in Stage-2. The Non-conformance in this indicator is CFA-2010.14.

X

ST2 The Company has provided risk analysis evidence in the form of Identification of Hazard Source, Risk Assessment and Control of PT Ramajaya Pramukti – Rama Rama Mill. This document consists of stations in the mill, description of activities, hazard potentials, risk assessment and risk control. Based on field trips, the company has socialized the risk analysis document by posting it at every station in the mill premises. The workers have also implemented risk assessment based on the result of work hazard identification. Review on Hazards Identification Document is scheduled to be carried out once every year. The Company has reviewed the HIRAC documents for plantation area, where during the harvest the workers are recommended to wear protective helm; this is based on past incident when a harvester’s head was crushed by a TBS. As such, the workers were equipped with protective helmet. Based on

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ASSESSEMENT REPORT


field trip (on Block C7), the audit team found that the harvesters wore helmets to protect their head; and based on the result of interview with several workers, they stated to have felt the benefits of wearing helmet in terms of work safety. However, during the field trip to the water tank at Rama Rama Estate workshop which supplies the 1st employee housing area, the audit team found that the area is potentially hazardous, especially to children, since it is not enclosed and no warning signs were found on location. The non-conformance status of CFA-2010.14 is declared as closed, but raising of new non-conformance on CFA-2011.27. The category of NC is ‘Comment for Action’.

4.7.6 Record of OHS Training.

ST1 Records on Work Safety and Health Training Program are available as follows: - Records of the 2010 Training Identification which includes department/division, name of worker,

position, type of training, planned date and its realization as well as the description column. - Mill worker training certificate for transporter operator, wheel loader, overhead traveling, crane

operator, welder and steam/boiler operator (in the form of operator license) - Work Safety and Health training program specified in the SMK3 Work Program document.

√

ST2 The Company has compiled a Work Safety and Health program for workers and provided an evidence of its training results as follows: - Work Safety and Health Technical Mentoring Training Certificate for Class 1 Steam Operator

(dated 20th of May 2011) and Operator License by the name of Jamino issued on 3rd

- Overhead travelling crane transporter and lifter operator training certificate by the name of Hendri dated 9

of November 2010, valid until 2012.

th

- Steam turbine operator training certificate by the name of Firdaus Tanjung dated 18 of November 2009; operator license valid until 2014.

th

- Work Safety and Health Training on 4

of October 2010, valid until 2012.

th

However, it was found that the engine room operator by the name of Ansori (helper operator) has not acquired any K3 training for the steam turbine operator in accordance to Law Number 1/1970. Minister of Manpower’s Regulation Number 04/MEN/1985. The Company has programmed the operator training to be held in October 2011. The audit team suggests that the Company realizes the Work Safety and Health training program for Steam Turbine Operator by the name of Ansori. The non-conformance in this indicator is CFA-2011.28.

of July 2011 by the Company’s Doctor with total participants of 32 people, attended by supervisors and chemical sprayers.

X

4.7.7 Accident and emergency preparedness procedure.

ST1 The Company has an emergency response procedure, such as the Land Fire Emergency SOP (SOP/RJP/KBR) legalized on 5th of February 2010. This procedure includes the formation of firefighting team and its training as well as procedure for handling land fire. There is also the Prevention, Handling and Recovery of Emergency Situation SOP (SOP/RJP/PKD) legalized on 5th February 2010, which consists of: the formation of Emergency Response team, identification of emergency causes, as well as steps to handle emergency situations. An evidence of land fire emergency response simulation on 25th

√

of July 2010 is available. It will be verified during Stage-2. ST2 In additional to documents seen at ST1.

The Company has compiled an emergency response procedure in the form of fire, earthquake, toxic and hazardous spill, biohazard and work accident handling flowcharts. The emergency response simulation is held every year, and the 2011 emergency response simulation activity will be carried out in October 2011. The Company also has an emergency response team structure legalized by the

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ASSESSEMENT REPORT


Manpower Agency through Decree number 700/DSTK-PHI/2011/05, which consists of a chairman, secretary, firefighting team, health group, disposal group and evacuation group. A land fire emergency response simulation on 21st of June 2011 followed by 48 participants from among the Rama Rama Estate and Mill employees. A report on firefighting training evaluation consists of fire risk, protection from fire, fire phenomenon and APAR usage.

4.7.8 Evidence OHS and first aid equipments available at worksites.

ST1 The Work Safety and Health Equipments owned by the Company consist of: − The toxic fire extinguisher located on accessible places with potential fires, such as around the

mill area, chemical warehouse, solar tank and housing complex. There are 29 units of powder type Self Protection Equipment for the mill area.

− 9 Hydrant extinguishers are available throughout the mill area complete with hose − First Aid Box is available in every building, such as the workshop, housing complex, office, mill

area and warehouse. Example: 9 first aid boxes are available throughout the mill area The Company has also routinely inspected each equipment. However, based on field trip, there is evidence that all toxic fire extinguishers in the area were not attached with information on effective period of fire toxic in the tube; the team suggests the Company to complete information on fire toxic’s effective period for every toxic fire extinguisher. The non-conformance in this indicator is CFA-2010.15

X

ST2 The company has routinely inspected the Light firefighting equipments, Hydrant and First Aid box in the mill area. Inspection is carried out once every month. Based on mill field visit, the Light firefighting equipments, Hydrant and First Aid box are in good condition and a routine inspection has been carried out. Each toxic fire tube is also equipped with information on the effective period of fire toxic such as Light firefighting Gear number 34 located in the engine room station, the last refill date of 21st of October 2010 and the next refill date of 21st of October 2011. Based on the field trip to the 2nd

√

Division of Rama Rama Estate, there were first aid boxes available which were carried around by the harvest supervisor and medics, which consist of various first aid necessities such as bandage, scissors, fuller earth, etc. The Non-conformance Status of CFA-2010.15 is declared as closed.

4.7.9 Workers trained in first aid should be present in both field and mill operations.

ST1 First aid training for workers is available, such as First Aid training document on 2nd

√ of February 2010;

the training was attended by 20 participants (supervisor, warehouse operator, assistant and head assistant). This will be verified during Stage-2.

ST2 The Company has provided First Aid training to mill workers. Records on first aid training for workers in February 2010 are available at the company’s doctor, attended by workers from the operational area such as the workshop operator, waste management workers, warehouse workers, etc. The Company has also provided first aid training for the plantation area as follows:

- Training on 1st

√

of September 2010 was hosted by the Doctor at Rama Rama Estate Central Clinic, attended by 18 participants from PT RJP by the name of Ariston, a member of the


ASSESSEMENT REPORT


security staff, and Jumiati, kindergarten teacher at Rama Rama Estate. - Training on 10th of April 2010 was hosted by the Doctor at Rama Rama Estate Central Clinic,

attended by Lagusrum, a medical supervisor for the 2nd Division of Rama Rama Estate.

4.7.10 Records of occurrence of any work accidents are maintained and regularly reviewed.

ST1 Work accident records are available in the form of PT Ramajaya Pramukti Work Accident Report Recapitulation – Rama Rama Mill for the 2008, 2009 and 2010 periods. The document has been reported to the Manpower and Transmigration Agency of Kampar District. This will be verified further in Stage-2.

√

ST2 The Company has monitored work accidents every month. There were 2 work accidents in 2010 which were claimed to JAMSOSTEK. Workers who were involved in the accident were hospitalized and have recuperated. There was no known accident in 2011 (January-June). The Company has also compiled an investigation mechanism on the occurrence of an accident. Investigation is carried out by the P2K3 officials from the Health, Research and Monitoring Divisions. The result of investigation is reported to the Manager (as Head of P2K3) for further action.

√

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

4.8.1 A documented training programs for staff, employee and scheme smallholders in accordance to workers' positions and competence.

ST1 Evidence of sustainable training program for staff and the employee as an identification and training plan for the 2009-2010 period at Rama Rama Estate (RRME) which contains the following training:

− Fire response training and simulation − Sexual harassment training − Toxic and hazardous materials handling training − HIPERKES training – In house welding training − First aid training for accidents − SOP training/socialization − Introduction and socialization of SMK3 − Operator training

The Company has provided training for the Scheme smallholder farmers in the form of routine briefing. However, there is not enough evidence that a documented training program is available to farmers. The non-conformance in this indicator is CFA-2010.16.

X

ST2 The Company has created a sustainable training program for staff and employees in the form of training necessities Matrix as well as schedule for the Rama Rama Estate trainings (RRME) in 2010 as follows: - The Materials Safety Data Sheet Training (MSDS) - Light Firefighting Equipments Usage Training - Self protection equipments usage training - Toxic and Hazardous waste handling training - Limited usage pesticide training The Company has also created a training program for Scheme smallholder and realized it as an

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Integrated Pest and Disease Control at Makmur Lestari Village Cooperative Unit on 30th of November 2010. The non-conformance status on CFA-2010.16 is declared as closed.

4.8.2 Records of training for each employee are kept.

ST1 The Company has conducted several trainings, for example: - The firefighting training was held on 22nd

- Toxic and hazardous waste handling training was held on 18

of February 2010 and attended by 100 participants at Naga Sakti Estate (NSAE) Junior High School.

th

- Health Training for medical staff was held on 12

of May 2010 at Nagasakti Estate Junior High School attended by 50 participants. Materials and list of attendance are available.

th

√

of October 2010, attended by 26 participants. A list of attendance is available.

ST2 The Company has realized trainings at Rama Rama Estate as follows: - On the 4th

- On 28

of July 2011, first aid training was followed by 32 participants who consist of supervisor and herbicide sprayers.

th √ of February 2011, fire hazard prevention training was held by the Kampar District Firefighters Department, attended by 65 workers which consist of the company’s staff, emergency response team and supervisor.

4.8.3 Evidence that the company uses experienced or trained contractors.

ST1 The Work Agreement states that the contractor has fulfilled the specifications set by the Company for each job, for example Work Agreement No. 002/RRME/03/2010-BGN for the housing construction, with Fransiscus Costan and Pedy Harianto as the first party and PT Buana Putra Jaya Lestari as the second party. Article 5 states that the second party is not allowed to defy from the requirements and must fulfill the drawings and technical specifications stated by the Company as follows: - The second party is required to place a site manager or full-time chief executive who has

competent expertise and experiences and approved by the first party. - The second party states its capability to fulfill the provisions on law on manpower, especially in

regards to salary and employee’s age. - The second party guarantees the work safety and health of all employees. The Company also

has an evaluation mechanism for the contractor, which also covers the adequacy of Work Health and Safety aspect implementation.

√

ST2 In additional to documents seen at ST1. The company provided an evidence of using a trained contractor for its Work Agreement, which specifies the requirement for every work, such as Work Agreement Number 003RRME/01/2011-TR for the execution of empty transportation works by Edi Basri S.H as the second party. Article 5 states that the second party is not allowed to defy from the requirements, and must abide by the drawings and technical specification set by the Company. - The second party is required to place a site manager or full-time chief executive who has

competent expertise and experiences and approved by the first party. - The second party states its capability to fulfill the provisions on law on manpower, especially in

regards to salary and employee’s age. - The second party guarantees the work safety and health of all employees. The Company also

has an evaluation mechanism for the contractor, which also covers the adequacy of Work Health and Safety aspect implementation.

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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.

5.1.1 Documented impact assessment.

ST1 PT RJP’s Environmental Impact Assessment Document which consists of: 1. PT RJP’s Environmental Impact Assessment Number RC.220/497/B/III/1994 on 18th

2. PT RJP Environmental Management / Monitoring Plan (RKL/RPL) Number 092/RKL-RPL/BA/IV/1996 dated 30

of March 1994 with mill capacity of 60 tons of TBS/hour

th

To be verified during Stage-2. of April 1996.

ST2 In additional to documents seen at ST1. PT RJP’s Environmental Impact Assessment Document consists of: 1. Environmental Impact Analysis Document; Environmental Impact Analysis (ANDAL) on Oil Palm

Plantation (PIR TRANS) and Processing Mill in Siak Hulu Sub district, Kampar District, Riau Province, compiled by PT Indica Dharma Consultant approved by the Minister of Agriculture through Letter Number RC.220/497/B/III/1994 dated 18th

2. Environmental Management/Monitoring Document: Environmental Management and Monitoring Document for PT Ramajaya Pramukti’s Palm Oil Plantation and Processing Mill in Siak Hulu Sub district, Kampar District, Riau Province, approved by the Head of Agribusiness Agency, Department of Agriculture through Letter Number 092/RKL-RPL/BA/IV/1996 dated 30

of March 1994 on Approval of PT Ramajaya Pramukti’s Environmental Impact Analysis with a scope of study covering 15,760 ha and 60 tons of TBS/hour harvesting capacity.

th

√

of April 1996 on Approval of PT Ramajaya Pramukti’s Environmental Management/Monitoring Document.

5.1.2 Records of regular report on environmental management in accordance to relevant regulations.

ST1 The Environmental Management/Monitoring Plan is compiled every semester and delivered to the

Local Environmental Body (BLHD) of Kampar Sub district. The Environmental Management/Monitoring Plan compiled by PT Ramajaya Pramukti has not explained all parameters of environmental impact management based on the 1996 Environmental Management/Monitoring Plan. For example: the monitoring and management of disturbance towards and by Elephants; Management and measurement of canal water level in peat moss area. The non-conformance in this indicator is CFA-2010.17.

X

ST2 In additional to documents seen at ST1. In RKL/RPL Report on April, 19, 2011 for second semester period (July to December) year 2010 reported. It is stated that management and monitoring of disruption to and by elephant has not been done anymore because it has been a long time (10 years) since the last disruption by elephant.The non-conformance status of CFA-2010.17 is declared as closed.

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5.1.3 Revisions to environmental management documents if there are changes in companies

operating areas or activities.


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ST1 No changes in terms of operational area and the Company’s activity, Palm Oil Plantation activity has not changed from the one specified in the Environmental Impact Assessment document, which is 60 tons of TBS/hour.

√

ST2 Similiar to stage-1 audit √

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.

5.2.1 Records of results of identification of any protected, rare, threatened or endangered species, and HCV habitat.

ST1 The HCV Identification document is available for PT Ramajaya Pramukti’s operational area, but the process of compilation and the content of document are not fully in accordance to the HCV Identification Toolkit issued by the Indonesian HCV Toolkit in May 2008. For example: the framework for report, supporting data used, legalization of document by the management, public consultation evidence, map scale is not in sync with the document print out, no report peer review process has been carried out and compilation team’s competence. The non-conformance in this indicator is NC-2010.18.

X

ST2 An Identification Report Document, High Conservation Value Management and Monitoring Plan adjusted with the identification toolkit of HCV May 2008 and compiled internally by the Company (PT Smart Tbk.’s Environmental Department) by the compilation team which consists of Norman Faried Mustakim (approved by RSPO HCV Assessor), Kusuma Widya Rochmah, Bambang Setyaji, Tomi Hendartomo, Nazlya Syahputri and Firmansyah validated in February 2011. Peer review was conducted by external party (Dwi Rahman Muhtaman) in October 2010. The public consultation activities on 28th of 29th

a. HCV 1.1 covering 189.36 ha of land area which consists of Air Jernih riparian, Petapahan, Kuok, Lembu, Kenantan and Tapung.

of July 2010 complete with a map which shows the result of HCV identification. The report document identifies the following HCV attributes:

b. HCV 1.2 2 types of animals which are classified as near to extinction are the Bengal Tiger (Felis bengalensis) and Bush Halcyon (Halcyon smymensis).

c. HCV 4.1 covering 189.36ha of land area which consists of Air Jernih riparian, Petapahan, Kuok, Lembu, Kenantan and Tapung. The non-conformance status of NC-2010.18 is declared as closed.

√

5.2.2 If, rare, threatened or endangered species, or high conservation value habitats are present, appropriate measures to preserve them are to be taken.

ST1 The HCV Identification Document has stated a recommendation but it is not described in the HCV Monitoring and Management Plan. The non-conformance in this indicator is NC-2010.19. X

ST2 A protected species was identified as Bengal Tiger (Felis bengalensis) in accordance to the Government’s Regulation Number 7/1999 and is classified in the 2nd

a. Planning the revegetation of buffer zone around the river terrace when replanting the palm oil plant.

Annex of CITES and another was identified as Bush Halcyon (Halcyon smymensis) in accordance to the Government’s Regulation Number 7/1999. The NKT Identification Report describes the following management actions:

b. Creating a warning sign on a real conservation.

X


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c. Reduction of plantation operations around the area. d. Restriction of chemical-related activities in the river terrace area. e. Socialization of river terrace areal conservation to the employees and surrounding population. f. Creating a warning sign on protected identified species. g. Socializing the conservation of protected species.

Based on the field trip to Air Jernih river terrace, the Company has planted Vertiver grass, Guatemala grass and bamboo. However, considering the physical condition of the river’s terrace which is prone to erosion, it is highly suggested that the company also plants trees with good root system. The non-conformance status of NC-2010.19 is declared as closed, but arising new The non-conformance in CFA-2011.29. The category is Comment for Action.

5.2.3 Steps to be done to protect rare or endangered species and their habitat have to comply with the regulation and include activities controlling illegal and unlawful hunting, fishing, or harvesting.

ST1 Monitoring of protected animals has been carried out, but it is not yet presented in a measured data. Socializations on protected animals and installation of warning signs have been carried out in and outside the company’s premise (all of which were not yet included in the integrated HCV management and monitoring). The non-conformance in this indicator is NC-2010.19.

X

ST2 The Company has compiled the 2010 and 2011 HCV Management Activity Plan which consists of the following activities:

1. Socialization of HCV 2. Installation of warning signs (restrictions against poaching, fish poisoning, land burning and

agrochemicals spraying). 3. Warning signs maintenance 4. HCV area patrol 5. HCV area monitoring 6. Vertiver grass, Guatemala grass and bamboo planting at the river terrace.

The following documents are available:

a. The realization of HCV area monitoring results consist of vertiver grass, Guatemala grass and bamboo on each river terrace complete with minute of erosion stabilizing vegetation planting and supervisor’s activity log (BKM).

b. Report on rehabilitation and development of HCV areal maintenance complete with maps and photographs.

c. Recapitulation of number of erosion stabilizer plants seeds on a monthly basis. d. Schedule and report on realization of HCV areal patrol. e. Report on HCV areal warning signs maintenance. f. Report on HCV areal limit PAL maintenance.

The Non-conformance status of NC-2010.19 is declared as closed.

√

5.2.4 Posters and signs warning of the presence of protected species are to be produced, distributed, and made visible to all workers and the community, including guidelines in handling them.

ST1 A warning sign is available along with leaflets containing the image of protected species. Internal and external socializations by the Company were also held on 20th of September 2010 and 25th √ of September 2010.


ASSESSEMENT REPORT


ST2 In additional to documents seen at ST1. Based on the result of field trip along the Rama Rama Estate Animal Observation Track and Air Jernih river terrace, the Company installed a sign board on protected species (Bengal Tiger and Bush Halcyon) as a means of publication to the employees and the surrounding population.

√

5.2.5 Companies are to appoint dedicated and trained officers to monitor any plans and activities as above.

ST1 An officer was assigned to monitor protected species by the name of Imran, but no training has been held for the officer. The non-conformance in this indicator is NC-2010.20. X

ST2 An officer was assigned to monitor the protected animals (Ajie Prasetiyo) in accordance to the Letter of Assignment of SEM RRME on 24th of January 2011 in which the said person was appointed as the HCV Officer and Environmental Office within Rama Rama Estate (PT Ramajaya Pramukti)’s Office. Training was held for an officer who was internally assigned by the Head of HCV Officer Section of Smart Tbk (Norman Farid) on 28th October 2010, 26th of May 2011 and 1st

√

of July 2011. The non-conformance status of NC-2010.20 is declared as closed.

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

5.3.1 All waste and pollutions sources are identified and documented ST1 The Company has provided records on identification of waste sources in plantation and mill areas,

such as: - List of Plantation Environmental Aspects which consist of: aspect code, environmental aspect,

impact potential, related field and related procedure. - The POM Waste Management Activities Document by PT Ramajaya Pramukti – Rama Rama

Mill for the first semester of 2010. This document includes types of aspects, reference regulations, management program, the policies being implemented and related document. Types of wastes identified in the mill area consist of Solid and Domestic Liquid Waste, Solid and Liquid Mill Waste, Mill Gas Waste, Toxic and Hazardous Substances Waste, Noise, Vibration, Lighting and Junk Waste; each identified waste is included in a separate management plan/program.

√

ST2 In additional to documents seen at ST1. The Company has presented an evidence of identification of waste and contamination source in the form of a POM waste management activity records for the second semester of 2011, Rama Rama Mill. The records include types of aspect, reference regulation, management program, policies being implemented and related documents.

√

5.3.2 Estates and mills waste management and disposal are implemented to avoid or reduce pollution.

ST1 The waste management plan is available (refer to the above major indicator 5.3.1), which is specified in PT Ramajaya Pramukti’s Palm Oil Mill Waste Management Activities document as follows:

- The mill’s solid waste management plan consists of excess fiber and shell usage to conserve fossil fuel. The policy is implemented by operating Boiler and Turbine using fiber and shell fuel.

- The mill’s liquid waste management plan consists of using the mill’s liquid waste for system land application to the plantation area and routinely analyzing its waste sample.

- Toxic and hazardous waste management plan consists of containing and temporarily storing

√


ASSESSEMENT REPORT


toxic and hazardous waste in special containers and creating a toxic and hazardous waste disposal site, recording it and delivering it to the toxic and hazardous waste collectors.

ST2 In additional to documents seen at ST1. The Company has compiled a waste management plan based on the result of its identification. (refer to indicator 5.3.1)

√

5.3.3 Management plan of hazardous waste and instruction of disposal of agrochemicals and their

containers waste in accordance to the product label and existing regulations. ST1 The Company has identified the type of toxic and hazardous waste, such as used batteries, used oil,

used filter, used lamp, toxic and hazardous waste package and cotton waste. The management plan consists of collecting all waste to a single point which has obtained temporary storage license from the Regent of Kampar (to be verified during Stage-2). Based on the audit team’s observations at the toxic and hazardous waste storage warehouse at Rama Rama Mill, the storage site has fulfilled the specifications of the issued license and the company has recorded the toxic and hazardous waste monitoring in and out of the temporary storage site. However, during the visit to toxic and hazardous storage warehouse at Ramabakti Plantation, the audit team found that the B3 waste is stored in an unlicensed temporary storage site where used oil and used diesel filter are also stored; according to one of the company’s staff, toxic and hazardous waste generated by the plantation is not yet accumulated in a licensed temporary site due to lack of space, and added that the plantation storage site is only temporary, after which a collector will collect the toxic and hazardous waste. However, the audit team deems this practice inconsistent with the license issued by Regent of Kampar, which clearly states that toxic and hazardous waste must not be stored in places other than what are listen in the license. This is also a breach of Government’s Regulation Number 18/1999 on toxic and hazardous waste management. The audit team also found that the toxic and hazardous waste monitoring records have not been reported by the Company to a related institution as required in the storage license from the Regent. The Company is required to store all toxic and hazardous wastes at a licensed storage site; and to report the toxic and hazardous waste monitoring to relevant institutions. The The non-conformance in this indicator is NC-2010.21. The result of audit team’s observations shows that the toxic and hazardous waste sold or delivered to the toxic and hazardous waste collector with expired collection license (recorded evidence: minute of delivery of toxic and hazardous waste to the collector in October 2010). This is inconsistent with the Government’s Regulation Number 18/1999 which requires the collectors to have collector license. The The non-conformance in this indicator is NC-2010.22.

X

ST2 The Company has obtained a toxic and hazardous waste storage license based on the Decree of Head of Environmental Agency of Kampar District Number 660/BLH-WAS/15) on 5th

- Type of toxic and hazardous waste: chemical packaging; In May 2011 there were 59 used chemical packaging; in June 2011 there were 20. On 6

of July 2010. The locations allowed for storing toxic and hazardous waste are the Rama Rama POM and Rama Rama Estate warehouse area. The non-conformance status of NC-2010.21 is declared as closed. Based on field trip to the mill and plantation, the Company has collected all toxic and hazardous waste on licensed locations, such as a visit to the toxic and hazardous waste warehouse at the mill; the types of toxic and hazardous waste collected: used oil, used filter, battery, chemical packaging and mahjun clothes. The Company has monitored toxic and hazardous waste stored at the temporary storage warehouse; proof of toxic and hazardous waste storage sheet record of PT Ramajaya Pramukti - Rama Rama Mill & KCP. For example:

th

√

of April 2011, 121 used chemical


ASSESSEMENT REPORT


packaging were given to the chemical supplier, the minute of event of which states that the delivery was made to PT Inter Chemicals Perkasa.

- Type of toxic and hazardous waste: used oil; in May 2011 there was 280 liter of used oil, in June 2011 there was 215 liter. On 29th

The Company has reported the result of toxic and hazardous waste monitoring to the BLH of Kampar District on a quarterly basis (once every 3 months). Recorded evidence: Cumulative Toxic and Hazardous Materials Waste Balance in Arrangement Time Scale for the period of January to March 2011. Report for the period of April to June 2011 is being compiled and will be reported to BLH of Kampar District in around July 2011.

of April 2011, used oil was delivered to the collector (PT Nirmala Tipar Sesama) who owns a toxic and hazardous waste collector license. Recorded evidence: Hazardous Waste Manifest number 0022018 which states that 3,400 liter of used oil was delivered to the toxic and hazardous waste collector; the B3 waste is transported by a licensed transporter. The non-conformance status of NC-2010.22 is declared as closed.

5.3.4 Records of waste monitoring / analysis

ST1 Available; To be verified during Stage-2

√

ST2 The company has monitored its waste as follows: - Monitoring of liquid waste for Land Application is carried out on a daily basis by taking notes of

the flow meter installed at the pump house in the water treatment pond. The daily logs are then recapitulated to monthly data. A regular report is delivered to relevant institutions once every 6 months.

- Monitoring of BOD of liquid waste for Land Application is carried out once every month by the SMARTRI laboratory. Data from BOD monitoring is reported to the relevant institution once every 3 months.

- Monitoring of toxic and hazardous waste collected at a licensed temporary storage site is carried out on a daily basis. Once every 3 months, the B3 waste monitoring result is reported to the relevant institutions.

√

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

5.4.1 Records of monitoring of renewable energy use and its efficiency analysis (energy / ton CPO or energy / ton palm product).

ST1 There is not enough recorded evidence of renewable energy usage (energy/ton of TBS or energy/ton of palm products) or its efficiency analysis. The non-conformance in this indicator is NC-2010.23. X

ST2 The company has provided evidence of renewable energy usage monitoring (fiber and shell fuel) on a monthly basis. It also has provided evidence on the result of fiber and shell fuel usage efficiency analysis as boiler station fuel to produce electricity (Kwh). Based on the monitoring data, the usage of renewable energy as fuel for the generator can conserve significant amount of diesel every year. For example: the usage of fiber and shell fuel in 2010 can conserve 1,622,822 liter of diesel. The non-conformance status of NC-2010.23 is declared as closed.

√


ASSESSEMENT REPORT


5.4.2 Records of monitoring of fossil fuels use for operational reason and its efficiency analysis.

ST1 There is not enough recorded evidence on the monitoring of neither fossil fuel nor its efficiency analysis. The The non-conformance in this indicator is NC-2010.24. X

ST2 The Company has monitored the usage of diesel fuel for Genset on a monthly basis. Data on monitoring of diesel fuel in 2011 (January-July) is available. Diesel fuel can be minimized by optimizing the usage of fiber and shell as boiler fuel. The non-conformance status of NC-2010.24 is declared as closed.

√

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.

5.5.1 Documented assessment where fire has been used for preparing land for replanting.

ST1 The Company is committed to not commit any land burning during land clearings or replanting. This is realized through a creation of SOP on land clearing without fire. To be verified during the main assessment.

√

ST2 In additional to documents seen at ST1. The company is committed to not commit any land burning during land clearings or replanting. This is realized through a creation of SOP on land clearing without fire stated in the Management Committee of Agronomy and Research’s Guide on Land Clearing and Replanting (SMA/MCAR/05/05-07) Chapter V.

√

5.5.2 Records of implementation of zero burning policy.

ST1 The Company is always committed to zero burning during the land clearing; based on field trip, there was no new clearing area. However, based on the information procured from one of PT RJP’s staff, land clearing techniques stated in the SOP will be used to clear new lands, by aggregating the fallen timbers into a single path and planting beans in those areas. To anticipate accidental fire, PT RJP has prepared a firefighting team and holds regular training for the team.

√

ST2 In additional to documents seen at ST1. Company is always committed to not carry out any burning during the land clearing; there were new clearings based on the result of studies and field trips. Based on the SOP on land clearing and replanting, the Company uses several stages of work, namely layouting, pioneer-blocking, logging, mechanical stacking, piling and chopped wood pieces.

√

5.5.3 Procedures and records of emergency responses to land burning

ST1 The Company has a land fire emergency procedure in the form of Plantation Area Land Fire Handling SOP (SOP/RJP/KBR) legalized on 5th of February 2010. The Company has also conducted land fire simulation on the 19th

√ of July 2010 by involving all workers from staff level to employee level. This simulation is scheduled to be held once a year. During a field trip, the audit team observed the established firefighting team and saw the practice of fire extinguisher equipments available at the company. The audit team assessed that the firefighting team has quite mastered and understood the fire emergency response procedure.


ASSESSEMENT REPORT


ST2 In additional to documents seen at ST1. Based on a field trip to the 1st √ Division of Rama Rama Estate, the audit team assessed that the established firefighting team has quite mastered the emergency response procedure.

5.5.4 Presence of appropriate fire extinguishers and facilities, depending on the risks assessment.

ST1 The facilities and infrastructures provided by the company to handle fire consist of light fire extinguisher equipments, water tank, spraying hose, wet sack, hook, first aid kit, firefighting team, evacuation team and medical team. To be verified during Stage-2.

√

ST2 The Company has conducted Emergency Response Equipment Needs Identification by Work Safety and Health Expert and Chairman of Work Safety and Health Committee of Rama Rama Estate, which includes the needs for light fire extinguisher equipments, Bakortiba box, First aid kit, and long staff with hook. During a field trip to the central workshop of Rama Rama Estate, the auditor team conducted inspection on firefighting equipments and deemed it under good condition and ready to use. However, the team found that some firefighting facilities and infrastructures are not equipped with a hose nozzle. The Company has delivered an internal purchase request for firefighting nozzle. However, it is highly recommended that the company followed up on the fulfillment of such request. The non-conformance status of this indicator is CFA-2011.30.

X

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

implemented and monitored.

5.6.1 Evidence of identification of pollution and emissions sources at mills.

ST1 The Company has identified the source of pollution and emission at the Mill specified in the POM Waste Management Activity document of PT Ramajaya Pramukti – Rama Rama Mill as follows:

− Mill gas waste in the form of Boiler and genset emission − Noise, vibration and lighting

√

ST2 In additional to documents seen at ST1. The Company has provided an evidence of identification of pollution and emission source at the mill, specified in the POM Waste Management Activity for the second semester of 2011 at Rama Rama Mill. The types of POM pollution and emission source mainly come from the boiler chimney and generator machine; noise, vibration and lighting coming from the work room at the mill.

√

5.6.2 Monitoring of pollution and emission quality of the sources identified.

ST1 The monitoring of emission quality has been carried out by the company once every 6 months. An immobile and ambient emission source measurement/test result by the Department of Manpower and Transmigration, Secretary General of Work Safety and Health Institute, Medan, is available. To be verified during stage-2.

√

ST2 Air pollution and emission quality monitoring is carried out once every 6 months. Document stating the result of identified pollution source’s emission quality is available as follows: document on result of immobile source and ambient air emission measurement/test at the Company (PT Ramajaya Pramukti, Rama Rama Mill), second semester of 2011. The test was conducted by the Work Safety and Health Institute, Medan City, Ministry of Manpower and Transmigration on 9th

√

of May 2011 on Boiler Number 1, Generator Number 2 and 3 and the Ambient air around the mill and employee’s housing complex.


ASSESSEMENT REPORT


Result of test at the boiler station shows that all tested parameters have fulfilled the quality standards specified by the regulation (Minister of Environment’s Regulation Number 7/2007), for example: test parameters Opacity 27.6% (quality standard is 30%); Particulates are 249.8 mg/m3 (quality standard is 300 mg/m3). Result of test at the Genset station shows that all tested parameters have fulfilled the quality standards specified by the regulation (Minister of Environment’s Regulation Number 21/2008), for example: result of test on Generator Number 2, parameters Opacity 16.1% (quality standard is 20%); total particle is 131.5 mg/Nm3 (quality standard 150 mg/Nm3); CO level is 441.5 mg/Nm3 (quality standard is 600 mg/Nm3). The result of ambient air test in the housing complex shows that all parameters have fulfilled the quality standard specified by the regulation (Government’s Regulation Number 41/1999). The result of noise test at work place is also available, as stated in the Result of Work Environment Measurement/Test at the Company (PT Ramajaya Pramukti, Rama Rama Mill), second semester of 2011. For example: the result of noise test in the engine room station is 104.4 – 104.7 dBA (quality standard is 85 dBA); the result of noise test is 96.9 – 97.8 dBA (quality standard is 85 dBA). Based on the test result at several stations, the noise level is still within the applicable quality standard. Further measure taken by the Company consists of procurement of self protection gear (ear plug) to the workers and audiometric test on a regular basis once every 6 months.

5.6.3 Records of efforts and strategies employed to reduce pollution and emissions.

ST1 Records of attempts and plans to reduce pollution and emission by the Company are stated in the POM Waste Management Activity of PT Ramajaya Pramukti – Rama Rama Mill. The attempts consist of:

− Conducting regular test twice a year on the boiler and generator emission. − Routine boiler and generator engines inspection program. − The single element program installation on the boiler and fuel balancing. − Noise and vibration test once every 2 (two) years.

√

ST2 In additional to documents seen at ST1. The Company has also created an innovation to reduce boiler emission using a Fuel Balancing Control method; at the boiler station, the fiber and shell fuel is fed automatically by considering the composition of fuel in the boiler kitchen to avoid excessive pressure in the boiler. Based on field trip, the boiler station is already equipped with Dust Collector which catches dust before it exits through the boiler chimney. Dust collector is maintained once every month.

√

5.6.4 Records of identification, monitoring, and treatment methodology for POME.

ST1 POME management methodology is regulated in Chapter IX of PT SMART Tbk Mill Processing SOP on Final Effluent. The effluent generated by the mill is collected at IPAL (Waste Water Treatment Facility) to reduce the waste content. From the IPAL pond, the waste is channeled to the land application area. Monitoring and testing of waste BOD are carried out every month by the SMARTRI laboratory. To be verified during stage-2.

√

ST2 Liquid waste is applied to the land using the Land Application method, before which the liquid waste from the mill is treated in 6 IPAL ponds using multi-feeding methods. The monitoring of waste water volume channeled to the land application area is carried out using a flow meter. Data recording from the flow meter is carried out every day and recapitulated in a monthly data. Evidence of records on the 2011 Land Application Flow Meter Recap from January to June 2011 is available as follows:

√


ASSESSEMENT REPORT


- April 2011, the number of pump run time is 206 hours, total distribution volume is 10,087 m3. - May 2011, the number of pump run time is 288 hours, total distribution volume is 12,955 m3. - June 2011, the number of pump run time is 144 hours, total distribution volume is 8,868 m3. Liquid waste BOD test is carried out once every month by the SMARTRI lab, where the test result shows that the liquid waste BOD has fulfilled the specified quality standards.

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.

6.1.1 Documented environmental and social impact assessment, including details of positive and negative social effects that may be caused by plantations and mills, and documented participation of affected parties and local communities.

ST1 Social impact analysis document such as the SIA of PT Ramajaya Pramukti which contains positive and negative impacts of the Company’s activities is available aside from the Environmental Impact Assessment. However, the document still lacks document legalization, document-supporting data, evidence of participation of parties affected by the Company’s activities and the competence of document compilation team. The non-conformance in this indicator is NC-2010.25.

X

ST2 Survey on Social, Economic, Cultural Condition and the perception of villagers around PT Ramajaya Pramukti’s plantation/mill is available as a Social Impact Assessment document compiled internally by the Company (Tomi Hendartomo, Yosaphat Ardhilla Renato and Nazlya Syahputri) in November 2010, in which the parties subject to impacts of the Oil Palm Plantation/mill management have been identified along with the positive and negative impacts. The Social Impact Management Plan describes the types of Social Impacts, Source of Impact, Impact Management, Management Parameters, Management location, Management period/schedule, impact management activity details and related parties. The Non conformance status of NC-2010.25 is declared as closed.

√

6.1.2 Regular monitoring and management of social impact, with the participation of local communities.

ST1 No social impact management and monitoring plan report is available in which the society is involved on a regular basis. The non-conformance in this indicator is NC-2010.26. X

ST2 The Company has provided a social impact management and monitoring plan which consists of the following: a. The Social Impact Management Plan compiled by SEM RRME consists of types of Social Impact,

Source of Impact, Impact Management Actions, Management Parameters, Management location, Period/Schedule of Management, Details of Impact Management Activities and Related Parties.

b. Social Impact Monitoring Plan compiled by SEM RRME consists of Types of Impact, Source of Impact, Monitored Impact Management Actions, Monitoring Parameters, Monitoring location, Monitoring Method, Time and Frequency as well as Related Parties. Based on information from the Management, the report on monitoring result will be compiled every year. The non-conformance status of NC-2010.26 is declared as closed.

√


ASSESSEMENT REPORT


6.1.3 Results of revisions to the environmental management document that encompasses social impact assessment in the event there are changes to company's operational scope, in accordance to existing regulations.

ST1 There is no change in the Company’s scope of operation and therefore no revision of the management document by the Company. √


6.1.4 A regular and scheduled environmental management and monitoring Report.

ST1 Environmental management and monitoring report is available on a regular basis (once every six

months) and delivered to the Local Environmental Body (BLHD) of Kampar District. For example: Environmental Management/Monitoring Plan of the 1st

√ semester of 2010.

ST2 During ST2, the Company has compiled the following documents: 1. Environmental Management/Monitoring Plan reported on a regular basis to relevant institution

(Local Environmental Body) once every 6 months, for example: the Environmental Management/Monitoring Plan of the second semester of 2010 is reported on 19th

2. HCV Management and Monitoring Report which consists of:

April 2011 in accordance to the Receipt of Environmental Management/Monitoring Plan Report signed by the Local Environmental Body officer of Kampar District (Adrian), which states the result of management and monitoring as well as evaluation on environmental management and monitoring parameters as stated in the Environmental Management/Monitoring Plan.

a. Realization of HCV area monitoring result which consists of realization of vertiver grass, Guatemalan grass and bamboo planting on each river terrace location complete with minute of erosion-prevention vegetation planting and the supervisor logbook (BKM).

b. Report on HCV area rehabilitation and maintenance development attached with maps and photographs.

c. Recapitulation of number of erosion-prevention plant seeds on a monthly basis. d. Schedule and report on HCV area patrol. e. HCV area sign board maintenance report. f. HCV area border PAL maintenance report.

3. Survey on the Social, Economic and Cultural Condition as well as the Perception of Villagers around PT Ramajaya Pramukti’s Plantation/Mill is available for use in the Social Impact Assessment compiled internally by the Company. The document describes Types of Social Impacts, Source of Impact, Impact Management Action, Management Parameter, Management Location, Period/Schedule of Management, Details of Impact Management Activities and Related Parties.

√

6.1.5 A regular and scheduled environmental management and monitoring Report.

ST1 The Social Impact Assessment document is available, in which special attention is given to the management and monitoring of social aspects of scheme smallholders. PT Ramajaya Pramukti has a scheme smallholders training with PIR Trans pattern. The farmer cooperator with RJP as core plantation through the farmer cooperative unit. RJP accepts and processes the fruits delivered by scheme smallholders. To be verified during Stage-2.

√


ASSESSEMENT REPORT


ST2 In additional to documents seen at ST1. Survey of Social, Economic, Cultural Condition and the Perception of Villagers Around PT Ramajaya Pramukti’s Plantation/Mill used for the Social Impact Assessment is compiled internally by the Company (Tomi Hendartomo, Yosaphat Ardhilla Renato and Nazlya Syahputri) in November 2010, in which the parties subject to impact of the Palm Plantation/Mill management along with the positive and negative impacts have been identified as scheme smallholders. In developing scheme smallholders, the Company has established a special companyal structure responsible for smallholders plantation (Amarta Jaya Scheme smallholder), led by an Estate Manager Scheme smallholder who answers to the Scheme Smallholders Regional Controller (RC). Scheme smallholders are divided into farm groups organized by a Village Cooperative Unit (KUD). The operations of scheme smallholders estate are handled by KUD, whereas the Company plays a role in technical support, management and finance. Based on the result of interview with Mekar Jaya KUD officials in Sei Lembu Makmur village, the briefing and training of scheme smallholders were carried out intensively by an assistant, although there are possibilities of further training by a higher level official. Smallholder Groups Training and Honorarium Funds are calculated based on the production target and the land area as follows:

√

No Smallholder Group

Stage Land Area (ha)

Production (ton)

Training Fund (Rp.)

Honorarium (Rp.)

Total (Rp.)

Production/hectare

(ton)

1 Makmur Lestari I 1,000 1,843 3,000,000 850,000 3,850,000 1.84

2 Sibuak Jaya I & II 1,080 1,868 3,000,000 850,000 3,850,000 1.73

3 Muara Mahat Sejahtera II & IV 938 1,852 3,000,000 850,000 3,850,000 1.97

4 Mekar Jaya III & IV 930 1,872 3,000,000 850,000,000 3,850,000 2.01

5 Mukti Lestari III & IV 486 994 3,000,000 850,000 3,850,000 2.05

Total 4,434 8,429 15,000,000 4,250,000 19,250,000 1.90

Briefing and Training to scheme smallholders of PT Ramajaya Pramukti and PT Buana Wira Lestari is available in the form of Briefing and Training to Amarta Jaya Plantation’s scheme smallholders consist of the following trainings:

1. Training on quality of fruits scheduled for 10 people was held on 29th

2. Training on plants maintenance scheduled for 12 people was held on 6

of November 2010 and attended by 9 people.

th

3. Training on fertilizing the soil scheduled for 7 people was held on 25


th

4. Training on road maintenance scheduled for 11 people was held on 20


th

5. Training on FFB safety scheduled for 15 people was held on 26


th

6. Training on IPM scheduled for 10 people was held on 10


th of November 2010 and attended by 6 people.


ASSESSEMENT REPORT


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.

6.2.1 Documented procedures and records of communication and consultation with the communities.

ST1 SOP on Communication and Consulting with the Stakeholders (SOP/RJP/KOM) and records of communication are documented in the Communication and Consulting Book. Record on socialization of Communication and Consulting SOP with the Stakeholders to the Society is available.

√

ST2 In additional to documents seen at ST1. Which explains the types of Communication activities, including the External Consulting and Internal Communication. The internal medias for requesting internal information; special and periodic meeting, training handbook, video, notice board, SSB, Lotus Note, SAP and suggestion box; forms of external communication: complaints, demands, claims and dissatisfaction towards the plantation management activities and the oil palm management mill, for example the quarterly reporting of work force of the 1st period of 2011 sent by the company to the Kampar District Manpower Agency through letter number 0034/SMK3/RRME-K/04/2011 dated 15th

√

of April 2011 on P2K3 Quarterly Report.

6.2.2 Maintenance of a list of stakeholders.

ST1 List of stakeholders at PT RJP is available; to be verified during stage-2 √ ST2 A list of stakeholders is available, which consists of the following:

a. Statutory Bodies (15 institutions) b. Indigenous people (6 people) c. Local communities (2 institutions) d. Workers company (5 companys) e. Small holders (6 KUD) f. Independent suppliers of FFB and services (3 suppliers) g. National NGOs (2 NGOs)

√

6.2.3 Records of local communities' aspiration and responses or follow-up actions by companies to these requirements

ST1 A record on public aspirations (mostly in the form of funds request) is documented in the communication and consulting book complete with responses and information on latest status. √

ST2 In additional to documents seen at ST1. Where the people’s aspirations consist mostly of aid request to the company, the aspirations have been documented in Record of response to request of information, for example Letter No. 192/UN.19.2/PPK/2011 dated 6 June 2011 sent by the Head of Demographic Research Center, Research Institution of Universitas Riau on Data and Information Request (as a material for Plantation HGU License Extension Study in Kampar District). The letter was patched through the Pekanbaru representative office and responded to by letter Number 06/RRME/0G/2011, addressed to the Manager of D & L of PBRO (Mr. Wishnu OH) dated 26th

√

of June 2011 to be forwarded to the party requesting the information.

6.2.4 A dedicated person responsible for consulting and communicating with local communities.


ASSESSEMENT REPORT


ST1 An officer was assigned to communicate and consult with the society by the name of Evian Indra as social coordinator through Decree Number 004/RC-Kampar/RSPO/10/2010 dated 1st √ of October 2010.

ST2 Revision has been made to the Letter of Assignment of officer responsible for communicating and consulting with the society by the name of Evian Indra as social coordinator at Rama Rama Estate through Decree Number 004/RC-Kampar/RSPO/01/2011 dated 1st

√ of January 2011.

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

6.3.1 An open system, which is accepted by affected parties, to receive complaints and to resolve dispute in an effective, timely and appropriate manner.

ST1 SOP for handling complaints and dissatisfaction (SOP/RJP/PKK) is available since 5th of February 2010 and there is evidence that the SOP has been socialized to stakeholders on 29th of July 2010. A land conflict settlement SOP (SOP/RJP/PKL) is available since 5th

√

of February 2010, which involves a third party (local government, figures of society, NGO). Based on field verification (interview with Head of KUD Sibua Jaya, Sibua Village), any dispute between KUD and PT RJP shall be settled amicably through negotiation between both parties in a just manner. Based on field verification (interview with prominent figures of Petapahan Village, Tapung Sub district), PT RJP involved the village figures and local society figures in a meeting for consensus during the development of palm oil plantation.

ST2 SOP for handling complaints and dissatisfaction (Document number SOP/NP/SMART/XII/MCAR001 dated 1st of July 2010) is available and consists of Internal Complaint Handling, External Complaint Handling and Female Workers Complaints, replacing the SOP for Handling Complaint and Dissatisfaction (SOP/RJP/PKK) dated 5th

√

of February 2010. The annex attached herein consists of the flowchart on handling each type of complaint. Based on the result of field trip to Petapahan and Sei Lembu Makmur villages, both village leaders stated that any problem related to the Company shall be delivered in writing or in person in accordance to the proper context. The Company has always immediately responded to any complaint by the society. The settlement of complaint has always promoted negotiation with related parties in accordance to the Company’s capacity and carried out in an open manner.

6.3.2 Records of handling complain.

ST1 Records on handling documented complaints in the Communication and Consulting Book which contain complaints/information inputs, responses and latest status. √

ST2 In additional to documents seen at ST1. Where all records of information request or complaint are documented in a Communication Book which states the number, date, number of letter, name of sender, institution of origin, request, purpose, signature of decision-maker, disposition, reference/receipt number and latest status. Based on results of visit to the society figures and KUD officials (Petapahan village, Sei Lembu Makmur village and Mekar Jaya KUD), there has been no known conflict between the Company and the society. Minor complaints from the society are delivered to the Company in person or in writing to the figures of society/village staff and negotiated with the company during a routine meeting of smallholder groups/KUD.

√


ASSESSEMENT REPORT


6.3.3 Procedures for the identification and calculation of fair compensation for the lost of legal or customary right of the land, with the involvement of local community representatives and relevant agencies and made publicly available.

ST1 Land conflict handling SOP (SOP/RJPL/PKL) dated 5th√ of February 2010 which involves the society

and related institution as well as NGO in settling land conflict dispute. ST2 People living around Rama Rama Estate and Rama Rama Mill are mostly transmigrates from outside

the area. The legal/traditional rights holders mostly come from local village (Patapahan Village). The land releasing process has been finished by the Company on all HGU areas but the company has provided a land conflict handling SOP (SOP/BWL/PKL) dated 5th

1. The compensation process has been finalized by the Company in all HGU areas controlled by the Company, in which the land release execution time passed through its intended stages such as socialization to the society, identification of parties affected by the impact and land area, negotiation/deal on amount of compensation or the involvement of stakeholders in the compensation process (village apparatus, figures of society/traditional figures and the local government).

of February 2010 which involves the society and relevant institution in settling the land conflict issue. Based on the result of interview with Petapahan village’s native society figures:

2. Aside from the land compensation/replanting activities, the local society is also involved in the Scheme smallholder program.

3. Up to the ST2 stage, there has never been a claim by the people against the HGU area controlled by the Company.

4. The people know for certain the vicinity of HGU area controlled by the Company.

√

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.

6.4.1 Procedures for the identification of people entitled to receive compensation for the loss of legal or customary rights of the land, with the involvement of local community representatives and relevant agencies.

ST1 The compensation process for the entire area controlled by PT RJP has been completed, the HGU borders are established and no land conflict has been brought forward up to the pre-assessment period (N/A). Based on the result of field verification on Petapahan villagers (H. Adelis), each party, especially the society through its representatives, has conducted a negotiation and entered into an agreement at the beginning of PT RJP’s Palm Oil Plantation development stage. The people have acknowledged the areal borders and there have been no known claims against PT RJP.

√

ST2 As stated in indicator 6.3.3, the Company has a land conflict handling procedure (SOP/RJP/PKL) dated 5th

√

of February 2010, in which a mechanism for identifying and calculating land compensation is available. However, during ST2, the Company has finished the compensation for HGU areas under its control and based on interview with figures of society from the native village of Petapahan, the land releasing process was carried out by involving the traditional figures, village staff, Land Release Committee (which consists of village apparatus, National Land Agency officer, District official) and other relevant parties in accordance to the then-applicable regulations.


ASSESSEMENT REPORT


6.4.2 Records of identifications of people entitled to receive compensation.

ST1 A list of compensation receiver is available along with details of its process (minute of transfer of ownership, statement of release of rights and receipt of compensation). √

ST2 PT RJP’s land release document is available in the form of land inventory process, plants and other attempts to release land for Petapahan village. Approving parties consist of owners/managers, Kampar District Land Office, Kampar Regent Office’s employee, Plantation Agency officer, Sub district Administrative Officer and Village Administrative Officer. The land release is also supported by the Regent of Kampar Administrative Territory’s Decree Number 525/238/Pem-Um/1991 dated 14th of May 1991 on PT Ramajaya Pramukti and PT Wira Buana Lestari’s Recommendation for Acquisition of Land Usage Rights for Business Purposes (HGU) which states that PT Ramajaya Pramukti in Petapahan Village has paid a compensation in the amount of IDR 58,267,775 for stage I development with a total of 209 lots, and that PT Buana Wira Lestari in Sekijang Village has paid a compensation in the amount of IDR 38,422,677.50 with a total of 140 lots.

√

6.4.3 Records of negotiations processes and / or the details of compensation settlements.

ST1 Complete compensation agreement process documentation (minute of transfer, statement of release of rights and receipt of compensation). √

ST2 The negotiation process or result of compensation agreement consists of the following steps: There are two types of compensation procured by the Company: a. Replanting of local vegetations for Scheme smallholder area candidates, where the land owners

are enrolled to the Pir-Trans program and obtain 2 hectares of plantation with a Statement of Rights Release over Lands/Replanting and receive compensation. For example: Abdul Majid, citizen of Petapahan village who obtains IDR 183,000 of compensation for Jengkol plants (20 plants) and Gajus (10 plants) over 2 hectares of land. The document is attached with a Statement of Release of Rights Over Land/Replanting and Payment of Compensation as well as Plants Check in the Area on 12th of March 1991.

b. Compensation for lands used as Core Plantation in return for Statement of Release of Rights over Land/Replanting and receipt of compensation, for example: receipt of compensation for Fauzi over 30,000 m2 of land located in Petapahan village, Siak Hulu district, in the amount of IDR 3,000,000. This delivery of compensation is witnessed by the Head of Land Agency of Kampar District, 1st Assistant of Kampar Regency Office, Leader of Siak Hulu Sub district and Leader of Petapahan Village. This document is attached with a Statement of Release of Rights over Land dated 2nd of September 1996, Statement of Receipt on 2nd of September 1996, List of Land inventory, Vegetation and other Businesses in the attempt to release the said area.

√

6.4.4 Records of settlement distribution.

ST1 Compensation payment documents are available in full (minute of transfer, Statement of Release of Rights over Land and Receipt of Compensation). √

ST2 Records on Compensation in full are documented in PT RJP Land Release Document which consist of the following: a. Replanting of local vegetations for smallholders area candidates, where the land owners are

enrolled to the Pir-Trans program and obtain 2 hectares of plantation with a Statement of Rights Release over Lands/Replanting and receive compensation. For example: Abdul Majid, citizen of Petapahan village who obtains IDR 183,000 of compensation for fruit plants (20 plants) and Gajus (10 plants) over 2 hectares of land. The document is attached with a Statement of Release of

√


ASSESSEMENT REPORT


Rights Over Land/Replanting and Payment of Compensation as well as Plants Check in the Area on 12th of March 1991.

b. Compensation for lands used as Core Plantation in return for Statement of Release of Rights over Land/Replanting and receipt of compensation, for example: receipt of compensation for Fauzi over 30,000 m2 of land located in Petapahan village, Siak Hulu district, in the amount of IDR 3,000,000. This delivery of compensation is witnessed by the Head of Land Agency of Kampar District, 1st Assistant of Kampar Regency Office, Leader of Siak Hulu Sub district and Leader of Petapahan Village. This document is attached with a Statement of Release of Rights over Land dated 2nd of September 1996, Statement of Receipt on 2nd of September 1996, List of Land inventory, Vegetation and other Businesses in the attempt to release the said area.

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

6.5.1 Documentation of employees' pay rates.

ST1 List of PT RJP’s employee’s salary in 2010 is available. It contains the salary and allowances received by its employees. For example, the list of Rama Rama Estate (RRME)’s employees salary in August 2010 is as follows: − Soldiono received IDR 1,646,735 of payment − Sri Widodo received IDR 1,762,735 of payment − Wagino received IDR 1,477,735 of payment

The amount of salary received by the employees is higher than the minimum regional wage applicable in the district. Based on the Governor of Riau’s Regulation number 95/2009, the minimum wage in Kampar District is IDR 1,122,000.

√

ST2 A list of PT Rama Jaya Pramukti’s employees salary for March 2011 is available along with allowances, overtime and premium received as follows: - Rafiudin, employee in the 1st Division of RRME received IDR 1,597,500 of salary Based on the Governor’s Regulation Number 10/2011 applicable since 1st

√ of January 2011, the

minimum wage in Kampar District’s Plantation Sector is IDR 1,234,000. As such, the salary procured is larger than the provisions of regulation.

6.5.2 A company working regulations and work contracts, in accordance to existing regulations.

ST1 The Company entered into a partnership agreement with the Sumatran Plantation Company Partnership Association (BKS-PPS), including an agreement between PT RJP and the Central Board of Officials of the Indonesian Trade Union Plantation and Farm Workers Federation (PP.FSP.PP.SPSI) based on Law Number 13/2003 on Manpower. The Company also has PT SMART’s Company Regulation of 2009-2010 legalized by the Directorate General of Industrial Relationship and Workers Social Insurance Number B140/PHIJSK-PKKAD/PP&PKB/III/2009.

√

ST2 The Company entered into a partnership agreement with the Sumatran Plantation Company Partnership Association (BKS-PPS), including an agreement between PT RJP and the Central Board of Officials of the Indonesian Trade Union Plantation and Farm Workers Federation (PP.FSP.PP.SPSI)

√


ASSESSEMENT REPORT


based on Law Number 13/2003 on Manpower. The Company also has PT SMART’s Company Regulation of 2010-2011 legalized by the Directorate General of Industrial Relationship and Workers Social Insurance Number 808/PHIJSK-PKKAD/PP /XII/2010.

6.5.3 Growers and millers provide adequate housing, water supplies, medical, educational and other facilities for employees where such facilities are not available or accessible.

ST1 Various public facilities are available for employees of Rama Rama Estate (RRME), ranging from mosque, employee housing, church, school (kindergarten, elementary school, junior high school, Madrasah Aliyah moslem boarding school), employee meeting hall, sports field, child day care and central clinic.

√

ST2 The Company has provided the following facilities and infrastructures: 470 G2 house types for employees, elementary schools in 1st and 3rd housing complex of Rama Rama Estate and the procurement of teachers employed by the Company, mosque, church, central medical clinic supported by Doctors and nurses, child day care and 1 unit of ambulance. Based on the result of field trip in the 1st

√

Division of Kijang Estate, the Company has provided G2 housing, clean water tank, religious community center, school, child day care, employee hall, sports facilities and polyclinic for employees, all of which are in good condition.

6.5.4 Agreements entered into with contractors are to specify that contractors are to specify that contractors abide by labour laws.

ST1 Article 5 of Work Agreement between the Company and Contractor states as follows: ‘The second party states its willingness to fulfill the provisions of law on employment, especially concerning the payment of salary to all of its employees; -the second party ensures the work safety and health of all employees; -the second party is not allowed to defy from the requirements and must comply with the work drawings and technical specification of the Company. –the second party must place a site manager or a full-time chief executive with the necessary expertise and experiences approved by the first party. For example, Work Agreement Number 002/RRME/03/2010-BGN for the performance of housing construction between Fransiscus Costan and Pedy Harianto as the first party and PT Buana Putra Jaya Lestari as the second party.

√

ST2 The Company has required the contractor to comply with the existing employment regulations, for example the agreement with CV. Suryalita Abadi Group as the second party for Soil Pile transportation works as stated in the Articles 5 and 9 of work agreement between the Company and contractor as follows: - The second party states its willingness to comply with the provisions of law on employment,

especially concerning the payment of salary and workers’ age. - The second party ensures the work safety and health of all employees. - The second party ensures work safety and health of all employees and is required to provide

self-protection equipments for the employees in accordance to the existing regulations.

√

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.


ASSESSEMENT REPORT


6.6.1 Documented company policy recognizing freedom of association.

ST1 Article II of the 2010 Cooperation Agreement between the Sumatran Plantation Company Partnership Association (BKS-PPS) and the Indonesian Plantation and Farm Workers Union (PP.FSP.PPP.SP.SI) states that the employer (PT RJP) and the workers union ensure the freedom of association to all employees. There are worker union companys within the Company, e.g. the Rama Rama Estate Work Unit Leadership (PUK) led by Mr. Elfitri Joni.

√

ST2 Based on letter of circulation number 045/CE05-SE/11/2010 on 16th of November 2010 on the freedom of association in a workers union made by CEO5 Fransiscus Costan. The SPSI Work Unit’s Board of Officials at PT RJP was also formed on 14th √ of November 2007 and was legalized as a member of Kampar District Plantation Company Workers Union Forum through Letter of Decree Number Kep.02/DPC-FSPPP-SPSI/KPR/XI/2007 for the period of 2007-2012.

6.6.2 Documented minutes of meetings with any labour union (if any).

ST1 A record of meeting with the workers union is available in the form of PT RJP SPSI document as follows: − Formation of IKS Bipartite Board of Officials on 15th

− Meeting between the Kampar SPSI work unit’s boards of officials with the company’s management on 15

of January 2009 at the RRME plantation office.

th

− Meeting between the PUK SPSI of PT BWL and PT RJP on 25 of January 2010 at Naga Sakti Estate Junior High School.

th

√

of October 2010 at Nagasakti Estate junior high school, attended by 16 participants.

ST2 A record of meeting with the workers union is available in the form of PT RJP document as follows: - A meeting on 2nd

- A meeting on the 2

of July 2011 discussed the relationship between the Company and its employees as well as the workers’ aspirations, attended by 6 people.

nd√

of July 2011 discussed the socialization of Law on Employment by the Kampar District Manpower Agency to employees, attended by 18 people.

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.

6.7.1 Documented company policy on worker age requirement, in accordance to national laws.

ST1 The Company’s policy on workers’ age requirement is stated in the HR Director’s Circulation Number 002/SE-HRDV//03/09 dated 31st √ of March 2009, which specifies that the minimum age of employee is 18 years old.

ST2 Similar to Stage-1 audit. √

6.7.2 Record of implementation of company policy on worker age requirements.

ST1 To be verified during stage-2

ST2 The Company has provided a record on execution of policy regarding workers’ age requirement as follows: - Sign board on the minimum age limitation of workers, namely 18 years, allowed to work within PT

RJP’s premise at the large office, 2nd and 3rd

- The youngest employee in the 5 employee housing complex.

th division of RRME is Elisma Zega, who was 19 years old when she first worked for RRME on 2nd

√

of January 2009.


ASSESSEMENT REPORT


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.

6.8.1

A documented equal opportunities policy.

ST1 Company’s policy on the procurement of equal opportunities and treatment is stated in Circulation number 003/CE05-SE/06/2009 on 24th

√ of June 2009 which regulates the execution of industrial relationship in a unit, among which that the Company provides freedom to its workers to work in any field without discrimination by tribe, religion, race and gender.


6.8.2 Evidence of equal treatment in working opportunities for workers.

ST1 To be verified during stage-2

ST2 The Company has supplied evidence that the procurement of equal opportunities and treatment can be seen in the Rama Rama Estate employee data as follows: - Bilson Marpaung of Batak tribe, Christian, serves as permanent employee. - Dalhari of Javanese tribe, Moslem, serves as permanent supervisor - Hariani of Batak tribe, Moslem, female, serves as technical employee - Jedelise Gea of Nias tribe, Christian, female, serves as nurse.

√

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.

6.9.1 A documented company policy on sexual harassment and violence.

ST1 The Company’s policy on prevention of sexual harassment and violence is stated in the Head of Agronomy Unit’s Circulation number 001/CEO5-SE/02/2009 on the 20th

√ of February 2009, legalized by Fransiscus Costan who arranged the attempts of socializing the prevention and handling of sexual harassment issues to all employees.

ST2 Similar to Stage-1 √

6.9.2 A documented company policy on the protection of reproductive rights.

ST1 Policy on the protection of reproductive rights stated in Circulation number 001/SE/VPA5/12/08 is legalized by B. Vijayakumaran on the 20th of December 2008: pregnant and lactating female workers are prohibited from working in the spraying area.

√

ST2 Policy on the protection of reproductive rights stated in Circulation number 001/SE/VPA5/12/08 is legalized by B. Vijayakumaran on the 8th of July 2011: pregnant and lactating female workers are prohibited from working in the spraying area or conducting any job directly related to the processing of hazardous chemicals in accordance to the existing regulations. It is also covered in the Circulation number 002/CEO5-SE/03/2009 dated 2nd of March 2009 on the procurement of menstrual period leave for 2 days.

√


ASSESSEMENT REPORT


6.9.3 Proof of implementation of sexual harassment policy.

ST1 The Company formed Rama Rama Estate Plantation Gender Committee led by Layla Ela; with deputy chairman Risma Situmorang, secretary Paska Dianto; and treasurer Hariani Purba. − Evidence of sexual harassment training held on 3rd

− Evidence of anti sexual harassment policy socialization held on 13

of February 2010 at the NSAE Training Room followed by 16 participants. List of absence is available. Certificate is available.

th√

of January 2010 at Naga Sakti Estate Junior High School (NSAE), attended by 40 participants from PT. RJP and PT BWL. List of attendance is available.


6.9.4 Proof of implementation of reproductive rights policy.

ST1 Based on an interview with the medical staff at PT BWL-PT RJP Nagamas Estate Central Clinic, there were no pregnant nor lactating women working in the spraying and fertilizing division. √

ST2 The Company has presented record of evidence on reproductive rights policy implementation in the employee monitoring documents as follows::

- Febriyanti, employee of Rama Rama Estate Head Office obtained pregnancy leave from February 2011 to May 2011, totaling 84 days.

- Warsih, employee of Rama Rama Estate Head Office obtained pregnancy leave from February 2011 to May 2011, totaling 84 days.

Based on result of interview with the RRME Central Polyclinic doctor, no pregnant or lactating women were found to be working with herbicides or fertilizers.

√

6.9.5 A specific grievance mechanism is available.

ST1 Employees deliver complaints in person or in writing. Written complaints are delivered through the Human Research Learning Centre (HRLC), whereas direct complaints are presented in meetings or to supervisors.

√

ST2 In additional to documents seen at ST1. Mechanism for handling special complaints in the female commission is available in the form of sexual harassment reporting to the female commission’s officials, followed up by an investigation and finalization.

√

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

6.10.1 Current and past prices paid for FFB shall be publicly available.

ST1 Based on the result of verification at Sibua Jaya KUD in Sibua village, the price of FFB is specified by a Price Committee which consists of representatives from the Company and scheme smallholder, facilitated by Riau Province Plantation Agency. The price determination applies for 1 week, starting on every Tuesday, and the Price Committee’s meeting is held every Monday. The price of TBS is posted on the notice board at KUD office and is continuously updated.

√

ST2 Based on the result of field trip to Mekar Jaya KUD in Sei Lembu Makmur village, the price of FFB refers to that issued by the Riau Province Plantation Agency as a result of Price Committee’s meeting. The Price Committee itself consists of representatives from the Company, scheme smallholders and Local Government. The meeting is held one a week on Tuesdays and the price is set on Wednesday.

√


ASSESSEMENT REPORT


The list of FFB price is continuously updated by the KUD officials and is available to public (posted on a white board). However, the KUD officials also keep a copy of every TBS Price Specification Decree. For example:

a. Decree on Minute of Price Determination Team Meeting for the Purchase Price of Fresh Fruit Palm Bunch in Riau Province Number 26/TPH TBS-VI/2011 dated 28th of June 2011 Wednesday – Tuesday from 29th of June to 5th

b. Decree on Minute of Price Determination Team Meeting for the Purchase Price of Fresh Fruit Bunch in Riau Province Number 27/TPH TBS-VII/2011 Wednesday-Tuesday from 6

of July 2011. The price of FFB for that period was IDR 1,623.65/kg of FFB (age >= 10 years).

th to 12th of July 2011. The price of FFB for that period was IDR 1,467.97/kg of FFB (age >=10 years).

6.10.2 Pricing mechanisms for FFB and inputs / services shall be documented (where these are under the control of the mill or plantation).

ST1 The mechanism for determining price is carried out through the Price Committee, which consists of representatives from the Palm Oil Company, Scheme smallholder Farmer and the Plantation Agency throughout Riau Province. To be verified during Stage 2.

√

ST2 The TBS price is determined based on the Minute of Oil Palm Plantation TBS Purchase Price Determination Team’s meeting in Riau Province held once a week, applicable for the next 1 week. The price determination meeting is attended by representatives from the Government, oil palm plantation entrepreneurs, scheme smallholder, scheme smallholder groups and KUD. Based on the result of field trip to Mekar Jaya KUD in Sei Lembu Makmur village, the officials always document the Minute of FFB Price Determination Meeting Result for each period, example:

a. Price of FFB for the period of 29th June to 5th July 2011 based on Minute Number 26/TPH TBS-VI/2011 dated 28th

b. Price of FFB for the period of 15 of June 2011.

th June to 21st June 2011 based on Minute Number 24/TPH TBS-VI/2011 dated 14th

√

of June 2011.

6.10.3 Evidence shall be available that all parties understand the contractual agreements they enter into, and that contracts are fair, legal and transparent.

ST1 Sibua Jaya KUD officials acknowledge the existence of agreement between KUD and PT RJP as well as changes to it. To be verified during stage-2. √

ST2 Based on result of interview with the officials of Mekar Jaya KUD in Sei Lembu Makmur village, each party has understood its part of the agreement with the Company and feels that they are being treated fairly in the agreement. Examples of agreement: FFB purchase agreement, fertilizer procurement agreement, FFB transportation agreement, etc.

√

6.10.4 Agreed payments shall be made in a timely manner.

ST1 Based on information from Sibua Jaya KUD, FFB payment is made once a month and is generally realized on time in accordance to the agreement.

√

ST2 Based on the result of interview with the officials of Mekar Jaya in Sei Lembu Makmur village, the FFB fruit sales is paid in accordance to the agreement, namely once every 2 weeks, through direct transfer to the KUD’s bank account.

√

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


ASSESSEMENT REPORT


6.11.1 Records of company contributions to the local development. ST1 Available;

To be verified during main assessment ST2 The following documents are available;

a. CSR realization document which states the procurement of aids to the society in the form of heavy machinery, computers, mosquito repellants, road repairs, building materials, and internship program for vocational students, etc.

b. Documents on Rama Rama Estate Plantation Articles 21, 23 Income Tax and Land and Building Tax Payments.

c. Documents on the realization of local purchases.

√

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.

ST1 Not Applicable; the Company has not developed/expanded palm oil plantation since November 2005. N/A ST2 Similar to stage-1 audit N/A

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.

8.1.1

A monitoring action plan based on the social environmental impact assessment (AMDAL), and regular evaluations of plantation and mill operations. As a minimum, these must include, but not necessarily be limited to : - Reduction in use of certain chemicals (criterion 4.6) - Environmental impacts (criterion 5.1). - Water reduction (criterion 5.3) - Pollution and emissions (criterion 5.6). - Social impacts (criterion 6.1).

ST1 Monitoring action plan on environmental and social impacts analysis is presented in the Environmental Management/Monitoring Plan and its executive report. To be verified during stage-2.

ST2 The Company has presented evidence of evaluation on environmental and social parameters analysis, for example: - Action plan and evaluation on result of BOD test on liquid waste - Evaluation on the result of air quality test (emission and ambient air) - Evaluation on well water and river water quality test - Monitoring of social impact activities. The Company has also compiled an environmental management and monitoring plan executive report which is delivered on a regular basis to the relevant institution.

√

8.1.2 Records of follow-up actions taken against RSPO audit findings, if any.

ST1 Not Applicable; RJP has never carried out an RSPO audit. To be verified during stage-2. N/A


ASSESSEMENT REPORT


ST2 The Company has made attempts to follow up on the result of previous RSPO audit findings (stage-1). The Company created a matrix on follow up of RSPO audit findings in stage-1. The record describes the attempts to be made, achievement targets, person in charge and progress.

√


ASSESSEMENT REPORT


Annex 2. Checklist of Supply Chain

Rama Rama POM is doing some efforts to comply with the supply chain system procedures as required in the RSPO certification. During Stage-2 activity, several things are conducted in relation to the Supply Chain requirements. The company has set the supply chain system applied in Rama Rama POM called Mass Balance. The actual on-site condition reveals that Rama Rama POM only accepts FFB from its core estates (Rama Rama Estate).

Clause Requirements Supply Chain Model

IP SG MB 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

Yes Yes Yes

ST2 The Company has compiled a Product Traceability Procedure in the form of PT Ramajaya Pramukti’s Supply Chain SOP (SOP/RJP/SC) legalized on the 12th

- of

July 2011. The Procedure describes the mechanism for recording fruit receipts (from core or smallholders plantation), its processing, storage of palm oil and palm kernel at the storage tank as well as delivery of products (CPO and palm kernel) to Dumai Bulking Station. The procedure also specifies a supply chain system based on the principles of Mass Balance where TBS from different sources are processed altogether. The Procedure specifies TBS receipt from core and Scheme smallholder plantation by records (receipt code at the weighing bridge). The available record is the weighing ticket. Afterwards, TBS is processed altogether, whereas the delivery of CPO or palm kernel claimed as certified product is accompanied by a Product Delivery Letter.

- √

b) Complete and up to date records and reports that demonstrate compliance

with these requirements (See 5 for more details) and that are 100% verifiable by the auditor.

Yes Yes Yes

ST2 Records and reports of CPO and palm kernel production and processing are presented daily, monthly and annually. For example: - The CPO Production Physical Stock Daily Report, Rama Rama Palm Oil

Plantation - Daily production report which consists of: FFB received, FFB processed,

CPO and Kernel production, CPO and Kernel Stock at the Storage Tank, Dispatch/marketing, CPO and Kernel quality.

- Monthly Processing Report of Rama Rama Palm Oil Plantation which consists of FFB receipt, Production record (FFB intake, oil and kernel production, extraction, operation hours, and mill capacity), monthly summary on TBS grading, oil quality report, oil production loss, kernel loss,

- - √


ASSESSEMENT REPORT





IP SG MB and operations.

c) 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.

Yes Yes Yes

ST2 Executive personnel: Mr. Surya Darma as Rama Rama Palm Oil Plantation Manager and Mr. Yusuf Damanik as Head of Rama Rama Palm Oil Plantation Administrative Section.

- - √

2 Purchasing and goods in 2.1 The facility shall ensure that purchases and deliveries of RSPO certified palm

oil and palm oil products are done in conformance with the following requirements:

a) Purchase orders for RSPO certified palm oil or palm oil product shall specify the material category (Identity Preserved, Segregated or Mass Balance).

Yes Yes No

ST2 Note Applicable; this indicator is not applicable for the system of Mass Balance Supply Chain

- - N/A

b) When receiving RSPO certified palm oil the facility shall check if the

material category/applicable supply chain model (Identity Preserved, Segregated or Mass Balance, see also req. 5.4) is clearly stated in the accompanying documentation and the Supply Chain Certification number of its suppliers is mentioned.

Yes Yes No


- - N/A

c) The facility receiving RSPO certified palm oil or palm oil products shall

ensure that the validity of accompanying trade and shipping documentation is verified prior to accepting the RSPO certified palm oil

Yes Yes Yes


ASSESSEMENT REPORT





IP SG MB ST2 Verification of trade and shipping documents is carried out by buyers at bulking

station located at Dumai Bulking Station – IVOMAS Tunggal, Dumai municipality, Riau province.

2.2 The facility shall have a mechanism in place for handling nonconforming

material/documents. This mechanism should also be used to declassify the RSPO material when the Supply Chain certification of a supplier is found to be invalid. See also req. 4.1


3 Sales and goods out 3.1 RSPO certified palm oil delivered include the following information a) The name and address of the buyer; Yes Yes Yes b) The date on which the invoice was issued; Yes Yes Yes c) A description of the product, including the material category: Identity

Preserved, Segregated or Mass Balance see also req 5.4.); Yes Yes Yes

d) The quantity of the products delivered. Yes Yes Yes e) Reference to related transport documentation Yes Yes Yes ST2 CPO is expedited from the Rama Rama Palm Oil Mill to be sent to the Bulking

Station which belongs to IVOMAS Tunggal located in Dumai municipality, Riau Province. Meanwhile, the kernel is delivered to the Kernel Crushing Plant at Rama Rama KCP, Tapung Sub district, Kampar District, Riau, to be processed into palm kernel oil. An evidence of record on oil delivery invoices in the form of Delivery Order (DO) document issued for every delivery of oil. - DO number 2150/CPO/2150/11/T014, dated 6th

-

of July 2011, CPO amount 2000 tons, the purpose of Ivo Mas Tunggal Bulking on Dumai, CV Karya Bersama transporter.

- √


ASSESSEMENT REPORT





IP SG MB 4 Processing 4.1 The facility can only use the same supply chain model as its seller or go to a

less strict system. Declassification is done in the following order: Identity Preserved -> Segregated -> Mass Balance -> Non RSPO Certified Palm Oil

Yes Yes Yes

ST2 The Company has implemented the Mass Balance supply chain system to the receiving, processing and delivery of CPO products.

- - √

4.2 The facility shall assure that the RSPO certified palm oil is uniquely identifiable

to the mill and its supply base and is kept physically isolated from all other oil palm sources in its facility

Yes No No


- - N/A

4.3 The facility shall assure and verify through clear procedures and record keeping that the RSPO certified palm oil is kept segregated from non certified material including during transport and storage and be able to demonstrate that is has taken all reasonable and necessary measures to ensure the objective of 100 % segregated material is reached. The systems should guarantee the minimum standard of 95 % segregated physical material*.

Yes, See 4.2

Yes No


- - N/A

5 Record keeping 5.1 The facility shall maintain accurate, complete, up-to-date and accessible

records and reports covering all aspects of these requirements Yes Yes Yes

ST2 All records and reports have been made and stored completely by the Company. The document storage system is a hard copy (print out) stored in the file cabinet in Rama Rama POM Plantation’s administration room.

- - √

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


ASSESSEMENT REPORT





IP SG MB ST2 The Company has specified the minimum storage period of records related to

FFB receipt records down to oil storage at storage tank to be 5 years. For example: Monthly report of Rama Rama, Oil Stock Report, Delivery Order document, CPO Delivery Reference Letter, etc.

- - √

5.3 a) The facility shall record and balance all receipts and deliveries of RSPO

certified palm oil on a three-monthly basis

b) When the Mass Balance model is used, a facility can only deliver Mass Balance sales from a positive stock. However, a facility is allowed to sell short

Yes Yes Yes

FFB processed at Rama Rama POM comes from the core and smallholders, so that the Palm Oil output produced and can be claimed as RSPO-certified oil based on the percentage of processed FFB from the scope of certification.

5.4 The following trade names should be used and specified in purchase and sales

contracts. Product Name/I

P

Product Name /SG

Product Name /MB

ST2 The purchase agreement is signed at the Dumai Bulking Station. Rama Rama POM is only responsible for sending CPO to Bulking station, whereas the Palm Kernel is delivered to Rama Rama KCP to be processed into PKO.

- - √

5.5 The facility shall provide documented proof that the RSPO certified palm oil can

be traced back entirely to the palm oil mill Yes No No


- - N/A

5.6 The facility shall provide documented proof that the RSPO certified palm oil can

be traced back to only certified segregated material. No Yes No


- - N/A


ASSESSEMENT REPORT





IP SG MB 5.7 The facility shall do as follow: a) Suitability of sales RSPO certified palm oil with the purchase of processing

unit up to Mass Balance Supply Chain Model.

ST2 Rama Rama Mill is till in the process of RSPO certification and it has not sold the product (CFO or kernel) as the product is claimed to be RSPO certified. The auditor will verify in the next surveillance visit.

b) Ensuring that expenses (sales) of the RSPO certified palm oil does not exceed revenue (purchases) of RSPO certified palm oil sent to the facility.

ST2 Rama Rama Mill is till in the process of RSPO certification and it has not sold the product (CFO or kernel) as the product is claimed to be RSPO certified. The auditor will verify in the next surveillance visit.

6 Training 6.1 The facility shall specify and provide the training for all staff as required to

implement the requirements of the Supply Chain Certification Systems Yes Yes Yes

ST2 New companys implement the Mass Balance supply chain system, and the POM staffs have been scheduled for supply chain training on 11th

of August

2011 (proof of record: Supply Chain Mill Training Program for Kampar Region).

√

6.2 The facility shall keep records of the training provided to staff in relation to

implementation of these requirements Yes Yes Yes

ST2 The new company implements Mass Balance supply chain system, and the POM staff have been scheduled for supply chain training on 11th

of August 2011

(evidence of record: Supply Chain Mill Training Program for Kampar Region).

√

7 Claims 7.1 The facility shall only make claims regarding the use of or support of RSPO

certified palm oil that are in compliance with the RSPO Guidelines for Communication and Claims (see Annex 10)

Yes Yes Yes

ST2 The Company is willing to follow the claim mechanism for usage of continuous palm oil in accordance to RSPO’s Guidelines for Communication and Claims.

√


ASSESSEMENT REPORT


Annex 3. Peer Review Report Reviewer: I. General comments to be evaluated No Issue and comment Clarification

To be completed by MUTU II. General comment to assessment report No Issue and comment Clarification

To be completed by MUTU III. Special comments to certification decision making process, covering a corrections, conditions and recommendations -.

No Issue and comment Clarification To be completed by MUTU


ASSESSEMENT REPORT


Annex 4. Results of RSPO Panel Committee –RSPO Certification No Inputs and responses

1 Reny Rustiangsih, SP In general, companies have implemented the RSPO P & C well. This is evidenced by the excellent progress by the company where there were 26 findings at the time of stage-1 activity that can be closed entirely during stage-2 activity performed. At stage-2 activities conducted there were only four findings that are comment for action without a grade of Major and Minor. This proves that PT Ramajaya Pramukti commitment to sustainable palm plantation management.

As it is known that the company get a supply of FFB from the estate outside the nucleus gardens , then to ensure that all supplies that go into Ramarama Mill it is highly recommended that the management immediately certify to the plasma..

2 Conclusion Internal Independent Committee (Mutuagung Lestari) approved the PT Ramajaya Pramukti is recommended obtain RSPO certification.

The report is Immediately for published on the RSPO website for a month to get further comment.


ASSESSEMENT REPORT


Annex 5. List of Stakeholder Contacted in the RSPO Certification Process

No Institutions/Departments No Institutions/Departments

1 Riau Province Governor’s Office 34 Kijang Makmur Village Youth Figures 2 Regional Provincial Secretariat 35 PUK SPSI NMAE 3 Local Development Planning Agency of Riau Province 36 PUK SPSI NSAE 4 Riau Province Environmental Body 37 PUK SPSI NSAM 5 Local Investment and Promotion Agency of Riau

Province 38 PUK SPSI KJGE

6 Riau Province Health Agency 39 PUK SPSI KJGM 7 Manpower, Transmigration and Demography Agency

of Riau Province 40 Kampar DPC

8 Industry and Commerce Agency of Riau Province 41 Head of Makarti Buana Jaya KUD (SP-1Buana) 9 Plantation Agency of Riau Province 42 Head of Berkat Ridho KUD (SP 2 Buana)

10 Riau Province Local Income Agency 43 Head of Kijang Mas KUD (SP 3 Buana) 11 Riau Natural Resources Conservation Forum 44 Head of Makmur Sejahtera KUD (SP 4 Buana) 12 WALHI Riau 45 TBS Agent of Tapung Hilir 13 WWF Indonesia – Pekanbaru 46 TBS Agent of Tapung Hilir 14 Scale Up 47 TBS Transporter 15 Riau University 48 Petapahan Village Leader 16 JAMSOSTEK Branch Office I 49 Sari Galuh Village Leader 17 Kampar Regent’s Office 50 Kota Baru Village Leader 18 Kampar Regency Environmental Body 51 Bangun Desa Village Leader 19 Kampar Regency Local Investment Body 52 Petapahan Village Society Figures 20 Kampar Regency Health Agency 53 Sari Galuh Village Society Figures 21 Social and Manpower Agency of Kampar District 54 Suka Maju Village Society Figures 22 Kampar Regency Plantation Agency 55 Head of Sibuak Jaya KUD 23 Kampar Regency Local Income Agency 56 Head of Mekar Jaya KUD 24 Head of Tapung Hilir Police Station 57 Head of Cinta Damai KUD 25 Tapung Hilir Sub district Leader 58 Head of Karya Tani KUD 26 Tapung Sub district Leader 59 Rama Rama Estate PUK SPSI 27 Sekijang Village Leader 60 Rama Bakti PUK SPSI 28 Kijang Makmur Village Leader 61 Rama Rama Mill PUK SPSI 29 Kijang Rejo Village Leader 62 Sei Lembu Makmur Village’s Smallholder 30 Sekijang Village Society Figures 63 Sei Lembu Makmur Village’s Smallholder 31 Sekijang Village Society Figures 64 Sukamaju Village’s Smallholder 32 Tapung Hilir Society Figures (Chairman of Kampar

People’s Representatives Commission) 65 Suka Maju Village’s Smallholder

33 Sekijang Village Youth Society Figures


ASSESSEMENT REPORT


Annex 6. Glossary AAA : Agronomy Audit and Advisory AMDAL : Analisis Mengenai Dampak Lingkungan (Social and Environmental Impact Assessment) APD / PPE : Alat Pelindungan Diri (Personal Protection Equipment) ASEAN : Association of South East Asian Nations AVP : Assisstant Vice President B3 : Bahan Beracun dan Berbahaya (Hazardous Material Waste) BOD : Biological Oxygen Demand CEO : Chief Executive Officer CFA : Comment For Action CPO : Crude Palm Oil CBD : Convention on Biodiversity ENDV : Environment Division HCV : High Conservation Value HGU : Hak Guna Usaha. (Land Use Permit) ISBPR / HIRARC : Identifikasi Sumber Bahaya, Penilaian, dan Pengendalian Resiko / Hazard Identification

Risk Assessment and Risk Control IUP : Izin Usaha Perkebunan. (Plantation Operation Licence) IP : Identity Preserved IPAL / WWTP : Instalasi Penyaluran Air Limbah / Waste Water Treatment Plant JAMSOSTEK : Jaminan Sosial Tenaga Kerja (Social Assurance of Labor) Jankos / EFB : Janjangan Kosong / Empty Fruit Bunch K3 / OHS : Keselamatan dan Kesehatan Kerja / Occupational Health and safety KER : Kernel Extarction Rate LC : Land Clearing MAA : Mill Audit Advisory MB : Mass Balance NC : Non Comformance OIA : Operations Internal Audit OER : Oil Extarction Rate P2K3 : Panitia Pembina Keselamatan dan Kesehatan Kerja (Occupational Safety and Health

Committee) PC : Production Controller PHT / IPM : Pengendalian Hama Terpadu / Integrated Pest Management PK : Palm Kernel PKS / POM : Pabrik Kelapa Sawit / Palm Oil Mill PSM : Perkebunan Sinarmas RBKE : Ramabakti Estate RJP : Ramajaya Pramukti RRME : Rama Rama Estate RRMM : Rama Rama Mill RC : Region Controller RKL/RPL : Rencana Kelola Lingkungan/ Rencana Pemantauan Lingkungan.

(Environmental Management Plan/ Environment Monitoring Plan) S1 : Surveillance 1 S2 : Surveillance 2


ASSESSEMENT REPORT


S3 : Surveillance 3 S4 : Surveillance 4 SG : Segregation SMARTRI : Smart Reseach Institute SOP : Standart Operational and Procedure ST 1 : Stage 1 ST 2 : Stage 2 TBS / FFB : Tandan Buah Segar / Fresh Fruit Bunches UKL/UPL : Upaya Kelola Lingkungan/ Upaya Pemantauan Lingkungan.

(Environmental Management Efforts/ Environmental Monitoring Efforts) VPA : Vice President Agronomy VPM : Vice President Manufacture