€¦ · Prepared by Mutuagung Lestari for Ladang Panjang POM – PT Bahari Gembira Ria TABLE OF CONTENT FIGURE Figure 1. Location Map of PT Bahari Gembira Ria Figure 2. Operational

PT. MUTUAGUNG

LESTARI

ASSESSMENT REPORT

Roundtable on Sustainable Palm Oil Certification

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

Plantation Management/Owner : SIME DARBY Plantation Sdn Bhd

Plantation Name : Ladang Panjang POM and Ladang Panjang

Estate – PT BAHARI GEMBIRA RIA, Minamas

Plantation

Location :

Ladang Panjang Village, Muaro Jambi District, Jambi Province

Certificate Code : MUTU-RSPO/019

Date of certificate issue : 09 July 2012

Date of expiry of certificate : 08 July 2017

Assessment Assessment

Date PT. Mutuagung Lestari

Auditor Checked

by Approved

by

ST2

22-26 November 2010 Deni A. Novendi; Faruk A. Nasir;

Heri Antoni; Ibnu S. Prabudi Reny

Rustianingsih Tony

Arifiarachman

Major Verification

26-27 December 2011 Taufik Margani; Octo HPN

Nainggolan; Marsudi Eko S. Reny

Rustianingsih Tony

Arifiarachman

S1 21-24 May 2013 Oktovianus Rusmin; Muardi

Marwas; Ardiansyah; Isyana Dewi Taufik

Margani Tony

Arifiarachman

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

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

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

MUTU Certification • Approved by RSPO Secretariat on June 2008

Assessment Submitted

to RSPO on: Approved

by RSPO on: Approved

by MUTUAGUNG LESTARI on:

S-2 8 July 2013 - 12 June 2013

http://www.mutucertification.com/

PT. MUTUAGUNG

LESTARI

ASSESSMENT REPORT

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

TABLE OF CONTENT

FIGURE

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

1 2

1.0 SCOPE of the SURVEILLANCE ASSESSMENT

1.1 National Interpretation Used 3

1.2 Organization Information 3

1.3 Type of Assessment 3

1.4 Location of Plantations, Mill and Area Statement 3

1.5 Description of Supply Base 4

1.6 Dates of Plantings and Cycles 5

1.7 Approximate Tonnage Certified 5

1.8 Other Certifications 6

1.9 Time-Bound Plan for Other Management Units 6

2.0 ASSESSMENT PROCESS

2.1 Certification Body 8

2.2 Assessment Team 8

2.3 Assessment Methodology, Assessment Process and Locations of Assessment 9

2.4 Stakeholder Consultation and List of Stakeholders Contacted 10

2.5 Determining Next Visiting 10

3.0 ASSESSMENT FINDINGS

3.1 3.2

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

11 29

3.3 Conformity Checklist of Certificate and Logo Use 32

3.4 Summary of RSPO Partial Certification 34

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

36

3.6 Summary of Arising Issues from Public, Management and Auditor Responses 41

4.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Signing of Assessment Findings 42

APPENDICES

1. List of Stakeholders Contacted in the RSPO Certification Process 43

2. Assessment Program 44

3. Glossary 45

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 1 Prepared by Mutuagung Lestari untuk PT Bahari Gembira Ria

Figure 1. Location Map of PT Bahari Gembira Ria

PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5

Page 2 Prepared by Mutuagung Lestari for Ladang Panjang POM – PT Bahari Gembira Ria

Figure 2. Operational Map of PT Bahari Gembira Ria


ASSESSMENT REPORT

SPO – 4006a.5


1.0 SCOPE OF THE CERTIFICATION ASSESSMENT

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

1.2 Organization Information

1.2.1 Company name SIME DARBY Plantation Sdn Bhd

1.2.2 Contact person

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

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

1.2.4 Telephone +62-21-29926000

1.2.5 Fax +62-21-29922686

1.2.6 E-mail [email protected]

1.2.7 Web page address www.simedarby.com

1.2.8 Company status Private

1.2.9 Management Representative who completed the application for certification

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

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

1.3 Type of Assessment

1.3.1 Scope of Assessment Mill and Estate

1.3.2 Type of certificate Tunggal

1.3.3 Company names listed in the certificate PT BAHARI GEMBIRA RIA

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

1.4 Locations of Mill, Plantations and Area Statement

1.4.1 Location of Mill

Name of Mill Location

GPS

Latitude Longitude

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

1° 04' 33" S 103° 47' 34" E

1.4.2 Location of Supply Base

Name of Supply Base Location

GPS

Latitude Longitude

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

1° 49' 35" – 1° 40' 24" S

103° 45' 52" – 103° 55' 44" E

1.4.3 Tenure

mailto:[email protected]

http://www.simedarby.com/


ASSESSMENT REPORT

SPO – 4006a.5


Private -

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

No. 4 Year 2003.

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

Community -

1.4.7 Area Statement

Total area 3,380.20 Ha

Mature area 2,851.34 Ha

Immature area Ha

Mill 21.60 Ha

Emplacement/Infrastructure 131.39 Ha

Nursery - Ha

Occupation Ha

Unpalatable area 375.87 Ha

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

1.5 Description of Supply Base

1.5.1 Description of Mill

Name of Mill Capacity

(tones/ hour)

FFB Processed

(tones/ year)

CPO Palm Kernel PKO

Out put (tones)

Extraction (%)

Out put (tones)

Extraction (%)

Out put (tones)

Extraction (%)

LPF 30 170,560.66 35,636.728 20.89 6,808.493 3.99 - -

*Source Production Data, May 2012 – April 2013

1.5.2 Description of Estate(s)

Name of Estate(s) Total Area

(Ha)

Planted Area (Ha)

FFB (tones/year)

Yield (tones/ha/year)

Supplied to Mill

FFB (tones/year)

%

Ladang Panjang Estate 3,380.2 2,851.34 41.,912.65 14.70 32,122.24 77

Source Production Data, May 2012 – April 2013

1.5.3 Smallholder(s) and other source

Name of

source(s) Member(s) Location

Total Area (Ha)

FFB (tones/year)

Supplied to Mill

FFB (tones/year)

%

Plasma 76.48 76.48 100

KUD 138,351.69 138,351.69 100

Total 138,428.17 138,428.17 100

Source Production Data, May 2012 – April 2013

1.5.4 Product categories FFB/CPO/PK/PKO

1.6 Dates of Plantings and Cycles

1.6.1 Age profile of planted palms*


ASSESSMENT REPORT

SPO – 4006a.5


Planting Year

Hectare

Ladang Panjang Estate (Ha)

Total (Ha)

1997 361.63 361.63

1998 381.49 381.49

1999 171.40 171.40

2000 556.30 556.30

2001 130.66 130.66

2002 80.00 80.00

2003 790.53 790.53

2007 379.33 379.33

TOTAL 2,851.34 2,851.34

1.6.2 New Planting area after November 2007 271.47 Ha

1.6.3 Planting Cycle 1st/2nd Cycle Years

1.7 Approximate Tonnage Certified

1.7.1 Past Annual Claim Certified Product

FFB Production 34,299 Tones/year

CPO Production 7,408.58 Tones/year

Palm Kernel (PK) Production 1,234.76 Tones/year

Palm Kernel Oil (PKO) Production - Tones/year

1.7.2 Claim Certified Tonnage of FFB

Name of Estate(s) Total Area

(Ha) Planted Area

(Ha) FFB

(tones/year) Yield

(tones/ha/year)

Ladang Panjang Estate 3,380.2 2,851.34 44,195.77 15.50

1.7.3 Claim Certified Tonnage of Palm Product

Name of Mill Capacity

(tones/ hour)

FFB Processed

(tones/ year)

CPO Palm Kernel PKO

Out put (tones)

Extraction (%)

Out put (tones)

Extraction (%)

Out put (tones)

Extraction (%)

LPF 30 44,195.77 9,281.11 21.00 1,812.03 4.10 - -

1.8 Other Certifications

1.8.1 ISO 9001:2008/ISO 14001: 2004 -

1.8.2 OHSAS 18001:2007 -

1.8.3 HACCP -

1.8.4 Others -


ASSESSMENT REPORT

SPO – 4006a.5


1.9 Time Bound Plan for Other Management Units

Management Unit Location

Hectarage (Ha)

Time Bound Plan

Status Mills Estates

Sekunyir PT. Indotruba Tengah

District of Seruyan and Kotawaringin Barat – Province of Central Kalimantan

7,734.60 2009 Certified

2010

Manggala PT. Tunggal Mitra Plantations

District of Rokan Hilir – Province of Riau 13,836.00 2009 Certified

2010

Bukit Ajong PT. Sime Indo Agro

District of Sanggau – Province of West Kalimantan

11,652.00 2009 Certified

2010

Teluk Siak PT. Aneka Inti Persada

City of Pekanbaru and District of Siak – Province of Riau

11,134.00 2010 Certified

2011

Sungai Pinang PT. Bina Sains Cemerlang

District of Musi Rawas – Province of South Sumatera

6,513.00 2010 Certified

2012

Sukamandang PT. Kridatama Lancar

District of Seruyan and Kotawaringin Timur – Province of Central Kalimantan

14,779.92 2010 Certified

2011

Pemantang PT. Teguh Sempurna

District of Seruyan and Kotawaringin Timur – Province of Central Kalimantan

16,601.66 2010 Certified

2011

Alur Dumai PT. Lahan Tani Sakti District of Rokan Hilir – Province of Riau 3,759.02 2010

Certified 2012

Teluk Bakau PT. Bhumireksa

Nusasejati District of Indra Giri Hilir – Province of Riau 25,662.00

2010 Certifed

2011

Mandah 2013 -

Mustika PT. Sajang Heulang

District of Tanah Bumbu – Province of South Kalimantan

7,794 2012 Certified

2011

Angsana Mini

Full Manage Plasma (KKPA)

16,000

2010 Certified

2011

2013

Audited 2013

Angsana PT. Ladangrumpun Suburabadi

District of Tanah Bumbu – Province of South Kalimantan

6,077.00 2010 Certified

2011

Gunung Aru PT. Bersama Sejahtera Sakti

District of Kotabaru – Province of South Kalimantan

12,704.54 2010 Certified

2011

Ladang Panjang

PT. Bahari Gembira Ria District of Muaro Jambi – Province of Jambi 1,202.04 2010 Certified

2012

Bebunga PT. Langgeng Muaramakmur


16,361.77 2011 Certified

2012

Pondok Labu PT. Paripurna Swakarsa


14,892.00 2011 Certified

2012

Selabak PT. Swadaya Andika


10,361.18 2011 Certified

2012

Rantau

PT. Laguna Mandiri District of Kotabaru – Province of South

Kalimantan 15,299.80

2011 Certified

2011

Betung 2013 -

Ungkaya PT. Tamaco Graha Krida

District of Morowali – Province of Central Sulawesi

4,145.00 2011 Certified

2012

Rantau Panjang

PT. Guthrie Pecconina Indonesia

District of Musi Banyuasin – Province of South Sumatera

10,139.91 2011 Certified

2012

Lembiru PT. Sandika Natapalma

District of Ketapang – Province of West Kalimantan

8,406.21 2011 Audited

2011

PT. Budidaya Agrolestari

District of Ketapang – Province of West Kalimantan

2011 Audited

2011

MAS PT. Mitra Austral Sejahtera

District of Sanggau – Province of West Kalimantan

8,741.29 2011 Audited

2011

Blang SImpo PT. Perkasa Subur Sakti

District of Aceh Tamiang and District of Aceh Timur- Province of Nanggroe Aceh

6,451.99 1,128.90

2011 Certified

2013


ASSESSMENT REPORT

SPO – 4006a.5


PT. Padang Palma Permai

PT. Perusahaan Sri Kuala

Darussalam

Sime Darby has been certified on all 39 units management in Malaysia and 21 units management in Indonesia. There is a change Time Bound Plan that caused the company delay the certification process as follow :

1. PT Mitra Austral Sejahtera. There are unresolved problems (issues) social. Palm Oil Farmers Union (SPKS) Sanggau have not yet agreed the demands of society and improvement of conflict resolution in accordance with RSPO principles and criteria.

2. PT Sandika Natapalma and PT Agro Lestari have been assessed in June 2011, but there are some noncompliance that must be resolved related to regulatory compliance.

Sime Darby has informed the Time Bound Plan and Mutuagung has considered that Sime Darby still meet the requirements of the RSPO for Partial Certification


ASSESSMENT REPORT

SPO – 4006a.5


2.0 ASSESSMENT PROCESS

2.1 Certification Body

PT Mutuagung Lestari

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

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

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

2.2 Assessment Team

2.2.1 Lead Assessor and Assessment Team

ST-2 1. Deni A. Novendi (Lead Auditor) 2. Faruk A. Nasir (Auditor) 3. Heri Antoni (Auditor) 4. Ibnu S. Prabudi (Auditor)

Major Verification

1. Taufik Margani (Lead Auditor): 2. Octo H.P.N nainggolan (Auditor) 3. Marsudi Eko Santoso (Auditor).

S-1 1. Oktovianus Rusmin (Lead Auditor): Bachelor‟s Degree in Social & Political Sciences Department of Anthropology. Specialists in the field of Social and Cultural (Social Impact & Conflict Resolution) and HCVF. Followed the Forest Management Auditor Training (FSC Standard), ISO 14001 Environmental Management System Training & SVLK (wood legality) auditors. He was several times involved in the assessment of Sustainable Forest Management Certification (Standard LEI). Had worked at the Center for the study of Anthropology, University of Indonesia; and experts to the field of Social Tropical Forest Trust (TFT) Indonesia. He was numerously involved the Social Impact Study and Identification HCV in Oil Palm Plantations and natural forest concessions. In this assessment activity, he conducted assessment of legal and social. In this assessment, he conducted assessment of legal and social aspects.

2. Muardi Marwas (Auditor): Bachelor of Agriculture Bogor Agriculture Institute. Attended RSPO and ISPO Assessment in Indonesia. He had been trained Lead Auditor RSPO and Wittiness Distribution Quality Management Process (DQMP) APMEA. Right now he works as auditor in independent Certification Body. In this assessment, he conducted assessment of plant cultivation aspects, Safety and Health Management Systems.

3. Ardiansyah (Auditor): Indonesian citizen, Bachelor of Forest Resources Conservation, Department of Forestry, Bogor Agricultural University. He has attended the Management System Certification (ISO 9001-2008), followed several activities such as preparing EIA document for plantation and plantation forest; contribute on HCV identification and several times following audit activities related to sustainable palm oil certification system as an auditor. In this assessment, he conducted assessment of environmental aspect, soil and water conservation.

4. Isyana Dewi (Auditor Trainee): Bachelor of Public Health, Department of Occupational Safety and Health. Faculty of Public Health, University of Indonesia. He has experience working in private oil palm plantation companies in Indonesia. Attended training including training understanding the RSPO certification system, and Integrated Management System certification (Safety Management System and OHSAS 18001:2007 Occupational Health, Environmental ISO 14001:2004, ISO 9001:2008 Quality). In this assessment, he conducted assessment of Health and Safety Management Systems Work and employment aspects.

5. Sofyan Hadi Lubis (Observer): Master‟s Program in Environmental and Natural Resource Management, Bogor Agriculture University (IPB) and Bachelor of Social Economic Agriculture, Gadjah Mada University (UGM). Participated in several environmental management workshops, climate change mitigation training and adaptation for agricultural productivity in Southeast Asia, Carbon Forum Asia Update and EIA lecture. He has been also involved as a research team at the Centre for Research, Development and Climate Change Policy, Ministry of Forestry of Indonesia - Bogor and Research Team in cooperation program IPB - ETH Zurich Switzerland - NUS Singapore. He has followed Auditor Training Indonesia Sustanable Palm Oil (ISPO). Furthermore, he also worked as a staff environmental/agricultural in consulting firm and done the preparation of EIA (KA-ANDAL). In this assessment, he served as an observer.

http://www.mutucertification.com/

mailto:[email protected]


ASSESSMENT REPORT

SPO – 4006a.5


2.3 Assessment Methodology, Assessment Process and Locations of Assessment

2.3.1 Figure of person days to implement assessment

Major Verification

Number of auditors participating: 3 persons. Number of days for pre-assessment at sites: 2 days. Number of person days for pre-assessment at sites: 6 man days.

S-1 Number of auditors: 5 persons Number of days for S-1 at the site: 4 days Number of working days for S-1 at the site: 20 working days

2.3.2 Detail process of assessment

Major Verification

Auditors observe the results that arise during the main assessment and the improvements made by the management unit will be verified further on subsequent visits.

S-1 The Survailence-1 was conducted by measuring the sufficiency of implementation with the consistency done by the PT Bahari Gembira Ria (BGR) to the requirements of National Interpretation of the Republic of Indonesia from RSPO Principles and Criteria for Sustainable Palm Oil Production (RSPO INA-NIWG, May 2008 and Scheme Smallholders October 2009) and Supply Chain Requirement for CPO Mill. The Survailence-1 was conducted in three methods: (1) document review, aiming to observe the sufficiency of types or substances from required documents; (2) interview, aiming to obtain more detailed information and cross check the information; and (3) field observation, aiming to observe directly the sufficiency of implementation on site. Some opportunities for improvement of the results Survailence-1 delivered by the auditor MAL to the management unit and the results are the subject will be verified at the next assessment phase Survailence-2. Improvement of findings from main assessment findings were observed by auditors at this Survailence-1 assessment. All information obtained was recorded in Check List of PT Mutu agung Lestari (MUTU) and part of Survailence-1.

2.3.3 Locations of Assessment

S-1 Scope of Surveillance-1 assessment is Ladang Panjang Mill and Ladang Panjang Estate. Sampling location retrieval

is done using the formula (0.6 ). Y is the number of estate was in PT BGR. Number of sampling visit at PT BGR is 1 (one) estate (Ladang Panjang Estate). And then, to balance the information auditors also visited villages around PT BGR. Village visited was the village of Petaling. Petaling is a village adjacent to the PT BGR, the company's business partners and there is a „Koperasi Unit Desa‟. Area sites visited consisted of Estate, Palm Oil Mill and Village. ESTATE: Location 1 - Division III Block C026 pole PT BGR 4 and Block C034 pole PT BGR 6. Observation on company boundary poles. Based on observations found the condition of poles is good and legible. Location 2 - Division III Block C023 and C025. Observations related to High Conservation Value (HCV) Area. Based on observations found the riparian areas have been marked “buffer zone” by yellow paint on the outer palm tree (a distance of 50 meters from the river side). Location 3 - Division III Block C032. Observation landfills. Location 4 - Division III Block C038/C036. Observations related to beneficial plant. Location 5 - Division III Block C036. Observations of integrated Pest Management (guffon). Location 6 - Division I, Block A12. Observation related to planting in 2009. Based on observations, the peat land has managed by water management. Location 7 - Division I, Block A006. Observation of monitoring peat decline (peat subsidence) and water level. Based on observation is known that since the gauges installed (2009) to date (May 2013), there is peat decline of 2 cm. Location 8 - Division III, Block C028. Observations related to effluent for land application. Based on observations and interviews is known that application is done by rotation every week and the application process is supervised by a special officer to avoid excessive application. Location 9 - Block C023 Ladang Panjang Estate. Observation and interviews with the foreman and Sprayers related to procedures / work instructions, type of PPE is used, company policies related to freedom association and


ASSESSMENT REPORT

SPO – 4006a.5


the committee gender and first aid emergency equipment. PALM OIL MILL: Location 10 - Division III. Observation of hazardous waste temporary warehouse at the mill. Location 11 - Division III, Block C024. Observations related to empty fruit bunch application. Based on observation is known that empty fruit bunch applied to each subject as many as 250 kg. Location 12 – Ladang Panjang POM. Observations related to mill operations (process, maintenance and management of liquid waste), occupational health & safety (OHS) implementation, fire fighting facilities and infrastructure, corporate policy, company's facilities, training and employment.

The processing (loading ramp to dispatch). Observations related to processing FFB produce crude palm oil (CPO), fire emergency response facilities in mill, first aid emergency facilities and occupational health & safety (OHS) implementation

Workshop. Observation of emergency response facilities, first aid emergency facilities and occupational health & safety (OHS) implementation

Employee Mill‟s Housing. Observation of facilities provided by the company such as employee housing type G2, places of worship (mosques), clean water, schools, kindergarten and household waste management

Location 13 - Clinic. Observation and interviews with paramedics related to periodic health examinations, work accident, health programs, and medical waste management VILLAGE: Location 14 - Petaling village. Interviews with officials KUD "Marga Jaya" in charge of 22 farmer groups with 2 farmer smallholders. Cooperation between PT BGR with farmers started in 1996 and until now has formed 5 Cooperative.

2.4 Stakeholder Consultation and List of Stakeholders Contacted

2.4.1 Summary of stakeholder consultation process.

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

2.4.2 List of stakeholder contacted

Please find appendix 3

2.5 Determining Next Visiting

The Surveillance-2 will be determined one year after this Survaillance-1.


ASSESSMENT REPORT

SPO – 4006a.5


3.0. ASSESSMENT RESULT

3.1. Summary of Assessment Report of the RSPO Certification

Mutuagung Lestari has conducted a Surveilance-1 of Ladang Panjang POM and Ladang Panjang Estate – PT Bahari Gembira Ria operation consisting of 1 (one) mill and 1 (one) oil palm estates.

During the S-1 assessment, there were 2 (two) non conformities assigned against Major Compliance Indicators, 2 (two) nonconformities were assigned against Minor Compliance Indicators and 6 (six) opportunities for improvement were identified. Further explanation of the non-conformities raised and corrective actions taken by the company are provided in section 3.5. The company has already prepared and implemented the corrective actions that had been reviewed and accepted by Auditors in form of documentation evidences (document record/photographic). Those corrective actions taken that consist of two 2 major Nonconformity and two Minor non-conformity had been closed out shall be verified during next assessment.

Mutuagung Lestari found that Ladang Panjang POM and Ladang Panjang Estate – PT Bahari Gembira Ria, MINAMAS Plantation – SIME DARBY Group complied with the requirements of RSPO Principles & Criteria and National Interpretation, RSPO Principles and Criteria (P&C) for Sustainable Palm Oil Production, Republic of Indonesia - RSPO INA-NIWG, May 2008.

Therefore MUTUAGUNG LESTARI Recommends RSPO Certification of compliance is continued

Ref Std.

VERIFICATION RESULT of MUTU-Certification

PRINCIPLE #1 COMMITMENT TO TRANSPARENCY

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

PT Bahari Gembira Ria has procedures No. RSPO/1.1/PI about Information Request that sure all information requests from stakeholders (verbal and written) will be recorded by the Head of Administration, and responded by the relevant department with their authority. The company have three (3) types of logbook for recording and responding information requests from stakeholders, namely Logbook Request Information/Public grievance, Logbook Request Information/Employee grievance, and Logbook Inquiries/ grievance stakeholders (Government). There is also Log book to record responses of information/support/invitation of stakeholders. Actually, requests from Plantation Agency about data of FFB and CPO production report on July 3, 2012. Response to the request was submitted data on August 1, 2012. In general, the stakeholders request are invitation from the Department activities such as the Health Agency, Energy and Mineral Resources Agency, Social, Manpower and Transmigration Agency and companies attended the Department‟s invitation.

Status: Full Compliance

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

PT Bahari Gembira Ria have procedure to Control Documents (RSPO / P & C) dated August 2, 2010. In Section 6 sub E regulate Validity and Destruction of documents based on their needs, as follows: (1) Recording an audit examination - 5 (five) years. (2) References - until there is a change. (3) Rule of law - until there is a change. (4) Customer demand - 3 years. (5) The policy of the company - until there is a change. (6) The compensation records - not limited.


ASSESSMENT REPORT

SPO – 4006a.5


PT Bahari Gembira Ria have procedure RSPO/1.1/PI about Information Requests sub Section 5.9 states that the type of information that can be provided such as documents of legal, environmental, social, Health and Safety, and continuous improvement program.


PRINCIPLE #2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

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

PT Bahari Gembira Ria has shown the result of evaluation to several valid legal requirements such as remuneration, delineation of area, environmental management and monitoring, and implementation of Occupational Health and Safety Program.

a. Government Regulation number 27 year 1999 concerning type of business that must have environmental impact analysis.

b. Law number 5 Year 1960 concerning Land Use Permit to cultivate land authorized by the state in a specific period. c. Government Regulation number 3 Year 1973 concerning supervision of the circulation, storage, and use of pesticide. d. Instruction from the Agricultural Minister (77/kpts/kb.510/2/88 concerning palm oil Pir-Trans development project in

Jambi, Batang Hari Regency, Jambi Province. Instruction was published on February 11th, 1988. The development of 1 palm oil mill with the capacity of 30 ton FFB/hour can be increased into 60 ton FFB/hour.

However, there are several legal requirements that have not been complied, such as: a. There were several Hazardous and Toxic Waste (used oil/battery/contaminated cloth) stored for more than 90 days such

as 480 liters used oil and 2 pieces of used batteries. Therefore, CV Surya Jaya Logam was pointed to collect Hazardous and Toxic Waste. There was an agreement between the company and licensed collector on May 24th, 2013. These three above points are not similar with Government Regulation number 18 Year 1999 concerning management of Hazardous and Toxic Waste.

Verification on May 28th, 2013 081374206192 Hazardous and Toxic Waste (used oil/battery/contaminated cloth) have been delivered to licensed third party on May 24th, 2013. The company has the manifest of Hazardous and Toxic Waste delivery from the warehouse of Hazardous and Toxic Waste. CV Surya Jaya Logam was pointed to collect Hazardous and Toxic Waste. Based on the delivery manifest, there were 4 drums used oil and 2 used batteries. They have been delivered by using car number BM 8535 MK.


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

PT Bahari Gembira Ria has shown documents of : 1. Decree of Forestry Minister number 73/Kpts-II/1996, on February 27th, 1996 concerning Releasing Some of Forest Area

in Parit river – Kumpen River Forest Group, Batanghari Regency, Jambi Province for 14.349 (Fourteen Thousand Three Hundred Forty Nine) Hectares for Palm Tree Plantation by Using PIR Transmigration Method on behalf of PT. Bahari Gembira Ria.

2. Permit of Location for palm tree plantation which based on the Decree of Muara Jambi Regent number 4 year 2000, wide area is 1.350 Ha, on March 29th, 2000.

3. Certificate of Land Use Permit number 4 year 2003, wide area is 1.202,04 Ha in Ladang Panjang Village, valid to May 6th, 2038. It was published on May 6th, 2003 by the Head of Land Agency of Muaro Jambi Regency.

4. Certificate of Land Use Permit submission of PT BGR for 2.178,16 Ha is still in the process. There is a Map of Land Measurement Result in 2007 published by National Land Agency, Jambi Province. Certificate publishing is still waiting the decree from National Land Agency (BPN).

Based on the Map of Land 2001 published by National Land Agency of Jambi Province, there were 10 stakes in Division 3 (Certificate of Land Use Permit number 4 years 2000). Based on the Map of Land 2007 published by National Land Agency of Jambi Province there were 20 stakes at Division 1 and 6 stakes at Division 2 (Certificate of Land Use Permit is still in process). There is a Monitoring to Land Use Permit Stakes Maintenance in Ladang Panjang Estate 2012 – 2013. Field survey for the monitoring of 4 boundary stakes at Division III Block C026 and 06 at Division III Block C034 showed that the condition of stakes were good and well maintained (physical, paint, and signs can be well read).


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There is a recording of land problem solving between PT Bahari Gembira Ria and Farmers Group of Sungai Gelam, the evidences are in the form: - List name of Sungai Gelam Farmer Group Member in Jambi Luar Kota Sub District, Batanghari Regency (number of farmer) - Minutes of Meeting between Sungai Gelam Farmer Group with the management of PT Bahari Gembira Ria, on November

10th, 1989. - Minutes of Meeting about Land Problem Solving between PT BGR and Bujang Cs (Farmer Group 133 Sungai Gelam Village

and Parit Village, Kumpeh Ulu Sub District Muaro Jambi Regency, on October 26th, 2010).


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

Based on the Areal Statement and Map, Identification Report Document of at High Conservation Value Area PT Bahari Gembira Ria in 2010, there was no tenure area (land with traditional right) inside the plantation area of PT Bahari Gembira Ria. There is also a letter from the Head of Ladang Panjang Village number 141/12/LP-2010 on August 2nd, 2010, concerning the Presence of Traditional Right. This letter stated that there is no tenure area (land with traditional right) inside the plantation area of PT BGR. There is also a recording in the implementation of Public Consultation for High Conservation Value Area (HCVA) Identification by PT Bahari Gembira Ria – Jambi Province, on May 9th, 2011. There is a map of Areal Statement and map of HCV (High Conservation Value) distribution which inform about the distribution of land use in the working area of PT Bahari Gembira Ria, such as: area of plant, area of occupation, facilities – infrastructure, and other usage area. Based on his map, there was no tenure land (land with traditional right). There was only river and inundated area usually used by the community for fishing. PT Bahari Gembira Ria never prohibits the community to conduct their custom activities to use certain area for fishing in river or in company‟s area. The company only prohibits for fishing activity with poison and protected animal hunting. To prevent it, PT Bahari Gembira Ria set several information signs to regulate the use of natural resources in the working area.


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

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

PT Bahari Gembira Ria showed a short-term plan such as presentation of Budget 2012 -2013 & Projection for the next 3 years, which is a detailed plan of company activities both estates and mill. Estate Budget includes the planted area, cultivated acreage, plant population, FFB production, fertilization, capitalization, and labor. Estate budget includes FFB acceptance, CPO and kernel oil production, and labor PT Bahari Gembira Ria has considered replanting on Peat lands faster than previous plan replanting. The company have replanting plan for year 2020-2030 that presented in Long Range New Planting Program. For first replanting are block that are planted in 1997, Division III Ladang panjang for area 361.63 Ha (mineral land). The company has a policy of land clearing in order to replanting maximum 400 hectares per year. The replanting location considers productivity, plant age and plant height.


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

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

PT Bahari Gembira Ria has several procedure related with plantation and mill management, such as:

Standard Operation Procedure Minamas Plantation Indonesia, Agricultural Manual Reference number of Policy: 110/EST-ARM/08 approved by AVP Plantation on August, 19th 2008.

Technical Guideline of Palm Oil Mill, Part I - Minamas Plantation number of Policy: 110/POD-FAC/07 known by Group head plantation Indonesia.

Technical Guideline of Palm Oil Mill, Part II Minamas Plantation number of Policy: 120/POD-FAC/07 known by Group head plantation Indonesia.

PT Bahari Gembira Ria has operational activity every year. The newest checking are listed below:

Plantation: Plantation Advisory Report LPE number MINAMAS/LPE/1/2012-13 conducted by Khairul Anwar assessment


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date September 14th – 16th, 2012.

Mill: Mill Advisory Report PKS LPF number MINAMAS/LPF/02/2012-13 conducted by Lee Kim Tiak assessment date Feb 19th – 21th, 2013.

All operational activities by PT Bahari Gembira Ria have been recorded in the Monthly Report for estate or palm oil mill. The latest Monthly Report was recorded on March 2013, such as: 1. Monthly Report at Ladang panjang PMO cover comment from manager, FFB acceptance, production data, quality & financial

loss of production, production cost, employee and housing area, inventory and cost recapitulation. 2. Estate Unit Report for operational activity such as statement area, structure of organization, housing, data of

building/infrastructure, data of FFB production, data of rainfall, data of mature plants, data of seedling, production cost, capital, etc.


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

PT Bahari Gembira Ria conducts soil analysis every 5 years and leaves analysis every year. The last soil analysis and land analysis was conducted by MRC in 2012. Based on the result of this analysis, MRC recommended several treatments to maintain the fertility of soil. There is an activity recording to maintain and increase the soil fertility, such as:

- Fertilization recommendation for Air Merah Inti Estate Period 2012/2013, by Minamas Research Center. Sample was taken in March 2012.

- Organic fertilization (empty fruit bunch) in March 2013 at Division 3 Ladang Panjang Estate. Total fertilized area was 71,06 ha, applied empty fruit bunch was 2,489.43 ton.

- Realization and Fertilization Program at Ladang Panjang Estate. For example, fertilization at LPE Div II Block B015 by using Peat Kay: plan 46,492 Kg for 80 Ha; it was realized in Sept 2012 as many as 12,800 Kg for 21.93 Ha and in October 2012 as many as 33,692 Kg in 58.07 Ha.

- Monitoring of Liquid Waste Application from Mill. Such as: application in April 2013 was13, 260 M3.


4.3 Practices minimize and control erosion and degradation of soils.

Based on the result of document study, the type marginal land owned by PT Bahari Gembira Ria is peat area. PT Bahari Gembira Ria has surveyed the depth of peat by MRC on December 12th – 16th, 2011. Based on the result of study, 41 % (1,156.15 Ha) area is mineral area and 59% (1.697.65 Ha) is a peat area. There is a map of area that show about the distribution of mineral land and peat area. Peat area is distributed in all Division I and Division II. To minimize and control the erosion, the company has routinely maintained the road. This road maintenance at peat area (Division I and II) was conducted by cleaning the channel and manual maintenance for land cover crops in the side of channel. There is a data of channel cleaning realization such as main channel cleaning in May 2012 – March 2013: 2,700 meters, fork channel cleaning in May 2012 - March 2013: 47,735 meter. Meanwhile, road maintenance in mineral land was conducted in the form of hardening and road backfilling such as at Division III, Block C023: plan was 1,860 meter; realization in July for 1.860 meter. Management PT Bahari Gembira Ria to manage peat area through:

Water management in the form of ditch by using water gate.

Ditch cleaning.

Routinely yard sticks (water level) measurement (once in a week). There are 7 yard sticks at Division I and 8 sticks at Division II. For example, measurement on May 4th, 2013 at Division I: 20 cm underground and the average of measurement in April 2013 at Block B016 Division II: 30.

Pizometer measurement to monitor the height of water level at the block every week.

Peat subsidence measurement every 6 months. Based on the result of field survey at Division I, Block A006, there was peat subsidence stakes and pizometer. The decreasing of peat at this block was 2 cm every year. Based on the field survey to Division I, Block A12, A13 and A14 The company has monitored water level through yard stick at several location and if water level exceeded a certain border, water gate would be opened to avoid flood at the plantation area.



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

PT Bahari Gembira Ria has a policy to avoid chemical material contamination (pesticide and fertilizer) at buffer zone area and water channel (such as ditch) by not spraying pesticide and fertilizer around this area. The determination of buffer zone of riparian is 50 meter. To maintain the availability and quality of surface water, PT Bahari Gembira Ria has conducted:

Natural condition maintaining around riparian.

Warning sign installation concerning prohibition of fish poisoning and cut tree at buffer zone.

Signing at buffer zone.

Manual maintenance of ferns at the left and right side of channel.

Liquid waste reused and not to dispose liquid waste to river.

Socialization in every morning assembly concerning prohibition of chemist in the riparian.

Routine monitoring of outspread river quality at BGR (every 6 months). PT Bahari Gembira Ria has monitored liquid waste BOD that has been routinely applied at the land (every month). There is a recording of monthly liquid waste BOD monitoring, such as:

Parameter Unit Month Quality Standard

July August Sept Oct Nov Dec

BOD mg/l 600 400 1,086 3,030 2,298 480 5,000

Waste quality monitoring was conducted by UPTB Local Environmental Laboratory, Local Environmental Agency of Jambi Province. PT Bahari Gembira Ria has monitored water usage, such as monitoring period in 2012 – 2013:

April 2013: water use = 14,023 M3; processed FFB= 10,201 Ton; water use per Ton FFB = 1.37 M3/ton FFB; budget = 1.5 M3/ton FFB.

March 2013: water use = 15,606 M3; processed FFB= 10,543 Ton; water use per Ton FFB = 1.48 M3/ton FFB; budget = 1.5 M3/ton FFB.


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

PT Bahari Gembira Ria has conducted general integrated pest and disease control like other palm oil estate in Indonesia, such as:

- Caterpillar control by using a combination method between biological method and chemical method. Biological method was conducted by multiplying the host plant for natural enemy of caterpillar. Several types of plants that can be used are Cassia cobanensis, Antigonon leptosus and Turnera subulata. These plants will be planted along the main road and production road at Division III. Chemical material such as Decis is ready to be used to anticipate attacks (out break). Until the assessment, there was no recording on the use of Decis (insecticide) to control caterpillar.

- Rats control was conducted by using biological and chemical method. Biological method was conducted by using owls (Tyto alba) as the natural enemy of rats. BGR has prepared owls nest. Lentrek has been prepared to be used to anticipate attacks (outbreak).

- Ganoderma control was conducted manually through soil mounding, dismantled, and chopped.

- Termite control was conducted by using chemical material through spraying. Agenda chemical material is prepared to be used to anticipate attacks (outbreak) of termites.

- Oryctes control through spraying, pherotrap installation and metarhizium application Integrated disease and pest control was monitored through the monitoring of program realization.

Beneficial plant that ever been planted such as Casia cobanensis, Antigonon leptosus and Turnera subulata. Data showed that these beneficial plants are still alive such as Casia cobanensis as long as 24 meter, Antigonon leptosus as long as 206 meter and Turnera subulata as long as 1,580 meter. In the last 4 months, there was no enough evidence about sustainable planting and beneficial plant maintenance.

Nest box was designed as the artificial nest for owls (Tyto alba). Total designed nest box was 63 boxes, 19 were in good condition and 44 boxes in poor condition. Based on the census of owls in April 2013 at Division III, it showed that there were 22 mature owls and 5 babies. In the mature plant, the company did not census rats but visual observation and statement from harvesting workers. In the immature plant, chemical material (Ratgone) was used to anticipate rat‟s


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attacks.


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

Chemical materials used in this activity have been registered and legalized by related institution. These chemical materials are not in the list of limiter pesticide or forbidden pesticide by the government. Chemical materials used in this activity consist of herbicide, rodenticide, and insecticide.

a. Herbicide used in this activity, Glyphosate (commercial brand is audit 486 AS). Number of registration is RI 7862/9-2008/T, Fluroxifyr (commercial brand is Starane). Number of registration is RI 854/7-2009/T, Metil metsulfuron (commercial brand is Metaprima and metafuron). Number of registration is RI 1897/7-2008/T and RI 1897/7-2008/T, Ammonium glyfosinat (Commercial brand is Basta). Number of registration is RI.1113/12-2008/T, Triclopyr (commercial brand is Kenlon). Number of registration is RI. 2433/5 – 2008/T, Fluroksipir (commercial brand is De Javu). number of registration is RI.1854/7-2009/T.

b. Rodenticide used in this activity: Brodifacum (commercial brand is Ratgone) number of registration is RI.1212/8-2007/7. c. Pesticide used in this activity for termite: Chloyrfos (commercial brand is agenda 25 EC) number of registration is RI.

1366/11.97/T. Chemical materials such as pesticide, insecticide, and rodenticide were applied in accordance with the target of species by using right doze. Termite attack was controlled by using Agenda (insecticide). Rats attack was controlled by using Ratgone (rodenticide). Meanwhile, weeds attack was controlled by using herbicide such as audit/starane/metafuron/metaprima. “Group” spraying system is easier for spraying operators in coordinating the job so they become more advanced. Spraying group consist of spraying operator and foreman. PT Bahari Gembira Ria has document for first aid guidance to used chemical material poisonous. MSDS (Material Safety Data Sheet) document for Agenda 25 for example Ratgone, Metafuron, Glyphosate, and Starane/fluroxipir are available. PT Bahari Gembira Ria has recorded the use of chemical material for the controlling of weeds/pest/disease by providing the type of chemical ingredient used, applied area, the amount of chemical material per hectare, and the number of application. For example: Document of Division I (Peat Area)

a. Glyphosate, applied area was 3.892,75 ha; total use was 1.701 liter; doze per hectare was 0.04 liter/ha. b. Fluroxifir, no use in July 2012 – April 2013. c. Metil metsulfuron (commercial brand is metaprima); applied area was 2.425,62 ha; total use was 127, 4 kg doze per

hectare was 0,05 kg/ha. d. Metil metsulfuron (commercial brand is metafuron); applied area was 467,13 ha; total use was 17,03 kg; doze per

hectare was 0.04 kg/ha. e. Brodifacum (commercial brand is Ratgone); total use was 402 kg.

Chloyrfos (commercial brand is agenda 25 EC); applied area was 977,52 ha; total use was 81,5 liter Used pesticide packaging waste from spraying activity at the plantation area has been cleaned. It was then delivered to the storage house of Hazardous and Toxic Waste at Ladang Panjang Mill (SOP RSPO/P&C/PLB3). Used pesticide packaging waste came from the use of chemical material such as kenlon, ally, agenda, basta, audit, metafuron, starane. The current position of used pesticide packaging waste is at Hazardous and Toxic Waste, Ladang Panjang Mill Used pesticide packaging waste ever been sold to the licensed carrier of Hazardous and Toxic Waste on March 16th, 2012. The current stock of used pesticide packaging waste at the mill are Kenlon (247 pieces), ally (225 pieces), agenda (41 pieces), Basta (39 pieces), audit (47 pieces), metafuron (205 pieces). Starane (60 pieces). There were uncleaning pesticide packaging waste before being delivered to the warehouse of Hazardous and Toxic Waste at the mill. Verification was conducted on May 29th, 2013: All pesticide packaging waste at mill have been cleaned by using the available procedure of management. Used packaging like kenlon, ally, agenda, basta, audit, and metafuron were cleaned at a special location at the plantation area and then delivered back to the warehouse. The documentation of cleaning is attached.


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


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At the Stage 1, Occupational Health and Safety Policy have been approved by the CEO of Minamas Plantation on July 5th, 2008, there was Occupational Health and Safety Policy at S1 in the Guideline of Sustainable Plantation Management made on August 27th, 2010 approved by the CEO of Minamas. It contains the commitment of Plantation Upstream Indonesia to the increasing of Occupational Health and Safety for worker/employee, contractor, guest through the effective Occupational Health and Safety Management. There is an evidence that this Occupational Health and Safety Program has been implemented according to the determined schedule, such as:

- Occupational and Environment Health and Safety meeting program, a meeting of Occupational Health and Safety Guiding Committee which conducted according to the last minutes of meeting on March 20th, 2013.

- Monitoring to the available Fire Extinguisher from July 2012-April 2013 both at estate and mill.

- Occupational and Environment Health and Safety meeting was conducted according to the last minutes of meeting on March 20th, 2013

- Safety Briefing has been conducted in accordance with the matrix of Occupational and Environment Health and Safety program in July 2012 – April 2013

- In house training program was conducted in July 2012 – May 2013. The recording has been available. The Example of Local Training with the theme of Occupational Health and Safety Reporting and Occupational Health & Safety Management System Implementation was based on the Law of Manpower. Its participant was the board of Occupational Health and Safety Guiding Committee and Head of Administrator. The trainer was Labor Agency of Jambi Province and Muaro Jambi Regency on January 16th, 2013.

The newest composition of Occupational Health and Safety Guiding Committee has been approved by the Head of Labor and Transmigration Agency of Muaro Jambi Regency. Occupational Health and Safety Guiding Committee at PT Bahari Gembira Ria is divided into two such as Occupational Health and Safety Guiding Committee at the Mill (number: Kep.566/09/Sosmakestrans), the board consist of Head, Vice Head, Secretary, Safety Officer, Head of Fire Department, Chemical Department, Education and Training Department, Pressure Vessel and Engineering Department, Electricity Department, Environmental Health Department, Transportation and Workshop Department; Occupational Health and Safety Guiding Committee at Estate (number: Kep566/42/Sosnaketrans) the board consist of Head, Vice Head, Secretary, Emergency Response Department, Environmental and Social Department, Training Department, Medical Department, Documentation and Administration Department. Social Assurance of Labor is routinely paid every month. Based on the List of Employee (March 2013) and payroll receipt, insurance were given to 110 staff and employee at Palm Oil Mill and 530 for staff and workers at the plantation area. Medical checkup has been routinely conducted to workers who work at high risk area. For example, medical checkup has been conducted for worker at boiler and mechanic on May 17th, 2013 such as physical, laboratory, radiology, spyrometer and audiometry checkup. However, the result of this medical checkup still waits the result from Raden Mattaher Hospital of Jambi as the initiator. HIRAC (Hazards Identification, Risk Assessment Control) has been conducted and reviewed. If there is a change of process, it will be routinely reviewed to see the suitability of possible risk impact from work phase. The sample of danger risk that has been identified is listed below:

- Hydro cyclone sampling: potential hazard exposed by spinning conveyor, noise, dust, slip. Risk: broken hands, hearing loss, respiratory problem, air pollution, and injury. Control: SOP operational, safety awareness, training, Personal Protective Equipment/PPE

- Pour mixed poison to pump: potential hazard: spilled/poisoned; Risk: irritation and skin inflammation. Control: PPE Observation result showed that there was a smoker during painting at hopper (working area). He did not smoke at the smoking area that has been provided. Therefore, LPF has directed this worker and sign boards "NO SMOKING" have been set at Ladang Panjang PMO. In the future, the management of LPF will affirm and give sanctions to all workers and contractor who smoke at the mill. Based on this improvement action, it can be stated that NC-2013.04 closed. The recording of consistently conducted Occupational Health and Safety in accordance with the schedule by PT Bahari Gembira Ria in July 2012 – April 2013, were:

1) Occupational Health and Safety Training Report and plan of Occupational Health and Safety implementation. Based on the Labor Law, it was conducted on January 16th, 2013 and led by trainer from Labor Agency of Jambi Province & Muaro Jambi Regency, Its participant was the board of Occupational Health and Safety Guiding Committee and Head of Administrator. There are evidences in the form of list of attendance and pictures.

2) First Aid Kid Training on May 7th, 2013 led by trainer namely dr.Waluyo. It was attended by 42 participants from estate and mill. Recording was shown by list of attendance, pictures, and training material.

SOP of Fire Prevention and Handle number 7311/BGR-ESH/10 and SOP Procedure of Emergency Response Training number


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Policy 7313/BGR-ESH/10 are still consistently used. Emergency Response Simulation Training has been conducted on May 2nd, 2013 by ESH Manager Sumatera Region and attended by workers from mill and estate (42 participants). Recording was shown by list of attendance, pictures, and training material There is recording of monthly monitoring to fire extinguisher both at the estate and mill. For example: robin machine checking at the estate, fire extinguisher at the mill, hydrant and first aid kits boxes. A checking to first aid kits box at the processing area showed that there was no first aid kit box at that area. Checking has not been conducted to fire extinguisher at hopper area and machine area. Tippler has not been checked in April and May 2013. There were several improvement actions, such as:

1. Hydrant hose were not entirely well functioned. During the assessment, hydrant hose was broken, torn, weathered so if it is used, water will sipping from this decaying gap. On May 26th, hose was replaced with the new one

2. First aid kits box was actually exist at the Assistant of Processing. However, at the time of assessment was not at the proper place. It was hidden inside the cupboard in order to hide it to be stolen by worker. On May 24th, 2013, first aid kits box has been placed at the proper location. Based on these above descriptions, NC-2010.03 is closed.

First Aid Emergency Training has been conducted on May 7th, 2013 led by trainer dr.Waluyo. It was attended by 42 participants from estate and mill. Recording was shown by list of attendance, pictures, and training material. Training participant consist of worker from the company operation activities such as Siswandi (Foreman of Division II), Poltak N (Mill Manager), Nurwasis (Harvesting Foreman). Monitoring to Working Accident is consistently conducted every month both at the mill and estate. The recording of working accident from July 2012 - April 2013 as follow:

- August 2012, there was one accident at the plantation area because of the collapse canal bridge. It caused 1 workers suffered from fracture (losing 14 working days) and 3 workers suffered from scratched (losing 4 working days).

- September 2012, there was one accident at the plantation area. Fingers were pinned at the boat‟s machine when victim cleaned the machine from trash bag twist (losing 5 working days).

- March 2013, there was one accident at the plantation area. It broke the boat because it hit the pier. The operator was not careful (losing 15 working days).

- January 2013, there was one accident at the mill because fingers were pinned in area between wood and plate when he clean the fiber at shell ellmot airlock hydro cyclone (losing 6 working days)

- In February 2013, there were 2 accidents at the mill such as pinned finger when cleaning fiber at shell ellmot airlock hydro cyclone (losing 4 working days) and hit by hammer on the ring finger when fixing elevator (losing 4 working days).


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

There is a training schedule of Minamas Plantation Period 2012-2013 composed by RTD Manager and approved by the Head of Plantation Upstream Indonesia. This matrix explains the development of area, title of training, facilities, initiator, and implementation month. There were 9 types of training and 5 planned development area both internal and external. This training calendar is used for the Minamas‟s worker and scheme smallholders. Based on the field survey, there was socialization about harvesting technique by Bina Tani three times in a month. There was also a recording of training for all employees both estate‟s employees and mill‟s employees for each level. In this recording material, there was several information: name of employee, number of employee, position, title of training, time, place, instructor, and certificate. The sample of employees training is listed below:

- Yushalli Salasa (Analyst), The title of training : In house training safety in laboratory December 22nd, 2011

- Muhammad Roni (Harvesting office clerk) has followed training: a) Socialization of implementation regulation concerning labor October 20th, 2010. b) Preparation of Occupational Health and Safety expert on May 7th – 16th, 2010. c) National Evaluation to the Expert Candidate of General Occupational Health and Safety on June 4th – 7th, 2012.

- Poltak Nainggolan (Factory Manager) has followed training: a) Core Executive on November 5th-10th, 2012. b) Training Counseling Techniques for Manager on February 22th-23th, 2012. c) National Monthly Meeting of Occupational Health and Safety in 2011. d) Outsourcing Seminar about Labor Law on March 20th, 2010. e) Fire prevention training on August 3th-4th, 2010. f) Monthly National Occupational Health and Safety Seminar on February 15th, 2010.


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- Ali Munar Lubis (Manager) has followed training: a) UAT e Plasma Minamas Plantation on March 18th, 2013 b) Core Executive Program 2 on February 10th, 2013 c) High Conservation Value Forest on October 10th, 2011

In 2013, there are 9 contractors consist of 6 contractor at the plantation area and 3 contractor at the mill. Before the implementation of activity, all contractors must attend briefing from the company. There are 2 contractors for FFB transportation namely Koperasi Sumber Jaya and Sumpeno, and there is also a recording of skilled contractors (trained to switch the lamp on while driving, install net, having driver license, and car checking before running the car). Contractor at the plantation area of pruning has briefing before shooting with tread horse and midrib-3 as well as using PPE. The recording on behalf of Suyanto number. SPK 049/BGR-LOKAL-DIV.1/IV/2013. Mill contractor on behalf of CV. Sentosa Raya Tehnik repair body lori as the evidence for safety briefing by the mill. In addition, the company also consistent requires contractor to provide and implement the Occupational Health and Safety as conducted at PT Bahari Gembira Ria.


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

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

PT Bahari Gembira Ria have document EIA (Environmental Impact Assessment) and RKL / RPL (environmental management plan / environmental monitoring plan), which was approved by the Governor of Jambi No. 304/KEP.GUB / BAPEDALDA/2007 dated August 2, 2007, covers an area of 4000 hectares nucleus, the smallholders area of 6000 hectares, and millers (POM) with capacity 45 tones FFB / hour. Based on the environmental documents (EIA), PT Bahari Gembira Ria have managed environment. There is evidence of environmental management has been carried out by PT BGR that described in the report RKL/RPL documents. This report has also been reported to the relevant agencies, such as proof of delivery reports RKL and RPL Semester II Year 2012 to the Office of environment agency. Muaro Jambi District on March 21, 2013. There is no change in the scope of operations of PT Bahari Gembira Ria, so it does not require revisions to existing document environmental management.


5.2 The status of rare, threatened or endangered species and high conservation value habitats, if any, that exist in the plantation or that could be affected by plantation or mill management, shall be identified and their conservation taken into account in management plans and operations.

There is a document of HCV area identification result that explain about the presence of habitat with NKT and protected species by the Government Regulation number 7 year 1999, CITES, and/or IUCN. Based on this HCV identification result, there are 22 hectares HCV at this BGR area, consist of:

NKT 1.1: important area for soil and water conservation (Buffer Zone of Terentang River).

NKT 1.2 and 1.3: important area for specific protection species (Sumatran Tiger - Panthera tigris), at Block 31, 34.

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

NKT 5: important area for local community necessity (Terentang River). There are several protected species in the working area of PT Bahari Gembira Ria: 9 mammals: such as macan akar (Felis bengalensis), siamang (Hylobates syndoctylus), porcupine (Hystrix branchyura); 5 species of birds, such as raja udang (Alcedo atthis), and elang hitam (Ictinaetus malayensis). The determination of this HCV area has involved Non-Government Organization and University of Jambi as the expert consultant. There are several actions that have been conducted by the management of PT Bahari Gembira Ria to protect species and habitat, such as:

- Socialization was delivered through a letter for 4 village head. It was proved by the Letter number 172/BGR-LPE/UM/V/2010 on Mau 24th, 2010 concerning The Implementation of Occupational Health and Safety and Environmental Conservation. It was addressed to the Head of Ladang Panjang Village, Pedaling Jaya Village, TSM (Trimulyo Jaya) Village, and Sumber Agung Village. This letter contains an appeal to the community to comply company‟s traffic signs, not to catch fish by using poison or shock; not to hunt protected animal. This letter was expressively state the guideline for NKT result; Government Regulation number 07 year 1999 concerning preservation of flora and fauna and Law number 07 concerning Water


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Resources.

- Monitoring and Management of HCV, there were several activities such as: a. Monitoring flora and fauna at HCV area b. Planting at HCV area c. Boundary stakes at HCV area (wildlife enclave) d. Sign Board installation e. Peat thickness measurement

Sign boards have been installed, contains information about protected animals. Sign boards were installed at HCV area such as buffer zone at Terentang River at Block C023 and C025 Division III. There were sign boards and appeal about HCV area and buffer zone signs at the outer area palm tree with the distance of 50 meter. This protection program has been socialized to the community and employee of PT Bahari Gembira Ria. There is also a structure of organization of HCV Management by PT Bahari Gembira Ria.

Person in Charge : Bustanuddin

Coordinator : Mirlansyah

Buffer Zone/Riparian Officer : Tomi Erizal

Wildlife Conservation Officer : Taufik Nasution

Plant Conservation Officer : Sugiharto

Management of PT Bahari Gembira Ria has determined specific officer for the management of HCV namely Taufik Nasution through the Decree number: /BGR-HCV/VIII/2011 on July 1st, 2011, replacing former officer namely Kausak. There is also documentation in the form of list of attendance and pictures during the implementation of HCV Training with the assistant of Ladang Panjang Estate, on December 24th, 2011.


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

The source of waste and pollution/emission has been identified. There are 4 type of solid waste and liquid waste, namely: a) Hazardous and Toxic Waste (used filter - workshop, used oil - workshop and house of generator, used dynamo, -

workshop and station spraying, used pesticide packaging, spraying area, used water from pesticide washing - chemistry spraying activity);

b) Domestic waste (paper, plastic, bottle, organic waste – source: housing area, office, workshop, warehouse); c) Clinical waste (syringe, infuse bottle, medicine box); source: clinic; d) Mill waste (empty fruit bunch, processing liquid waste, iron powder, shell & fiber, and boiler dust).

Meanwhile, source of emission/pollution was also successfully identified and documented, such as: a) Air pollution/emission from the activity at chimney boiler, generator 1, 2 and 3, road. b) Noise from the operational of turbine, generator, spinning of polishing drum and nut creakier. c) Land and water pollution from oil warehouse and Hazardous and Toxic Waste.

Management plan of solid and liquid waste management and agro chemical used packaging is adjusted with the valid regulation. The management is adjusted with the characteristic of each waste: a. Hazardous and Toxic Waste. Filter waste, oil, batteries, contaminated cloth, used pesticide packaging are stored at licensed

waste warehouse, and then deliver to big licensed collector. There was Hazardous and Toxic Waste (used oil/battery/contaminated cloth) that has been stored for 90 days (more than the limit of storage time).There was.520 liters used oil and 2 used batteries. Verification on May 29th, 2013 Hazardous and Toxic Waste (used oil/battery/contaminated cloth) has been delivered to the licensed third party on May 24th, 2013. The company has the manifest of Hazardous and Toxic Waste delivery from the warehouse of Hazardous and Toxic Waste at mill. CV Surya Jaya Logam was pointed to collect Hazardous and Toxic Waste. Based on the manifest of delivery, there were 4 drums of used oil and 2 used batteries delivered to car number BM 8535 MK.

b. Used pesticide packaging waste from spraying activities at cleaned plantation area and then deliver to the warehouse of Hazardous and Toxic Waste at Ladang Panjang Mill (SOP RSPO/P&C/PLB3). Used pesticide packaging come from chemical material packaging such as kenlon, ally, agenda, basta, audit, metafuron, starane. The current position of these used packaging are at Hazardous and Toxic Waste at Ladang Panjang Mill. Used pesticide packaging is sold to the collector of Hazardous and Toxic Waste on March 16th, 2012. Current stock of used pesticide packaging at the warehouse are Kenlon (247 pieces), ally (225 pieces), agenda (41 pieces), Basta (39 pieces), audit (47 pieces), metafuron (205 pieces).


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Starane (60 pieces). c. Clinical waste was delivered to the mill waste warehouse and stored together with other Hazardous and Toxic Waste.

Clinical waste was then delivered to Arafah Hospital to be destructed (by using incinerator). Medical waste has been delivered to the Arafah Hospital as much as 5.5 kg.


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

PT Bahari Gembira Ria had been monitored the use of renewable energy from shell and fiber as boiler fuel to produce electrical energy, for example:

April 2013: shell usage is 367,245 Kg and fiber usage is 1,632.202 Kg

March 2013: shell usage is 379,555 Kg and fiber usage is 1,686.915 Kg. PT Bahari Gembira Ria also has calculated the efficiency energy per tones of CPO, for example

April 2013: 55.89 Kwh/Ton CPO

March 2013: 57.11 Kwh/Ton CPO PT Bahari Gembira Ria also has monitored the use of diesel fuel for operational purposes, for example:

The use of diesel fuel for the generator in April 2013 26,408 liter

The use of diesel fuel for the generator in March 2013 : 30,304 liter


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

PT Bahari Gembira Ria has a document in the form of memorandum Minamas Plantation - Head office Jakarta number POD-UM-010/I/2009 on January 22nd, 2009 concerning the anticipation to fire and drought at the plantation area. The use of fire for waste removal and land preparation is avoided to anticipate fire. During this assessment, there was no land preparation for the development and extension of land. The use of fire for waste removal and land preparation is avoided to anticipate fire. During the assessment of this program, there was no land preparation for land development and extension. The company has established emergency response team. Response team consists of supervisor, general coordinator, fire coordinator, natural disaster coordinator, riots coordinator, medical team, and documentation. Mill team consists of general coordinator, processing team, maintenance team, and office/security.

Plantation Team Supervisor : Bustanuddin Head of coordinator : Mirlansyah Fire coordinator : Mardi sumarna Natural disaster coordinator : Gani Riots coordinator : Dedi Irawan

Mill Team Processing team : Hariadi Field coordinator : Nuzirwan Jambak Maintenance team : Jamaluddin Laboratory, office, and security team : Husin

Facilities for mill fire are hydrants (5 pieces) are located at threshing, pressing, clarification, boiler, kernel dispatch, power house and housing area of. There are 63 fire extinguishers. Hydrant, hose, nozzle, and installation of water source were also monitored.


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

The result of identification to emission and pollution source is available in the form of matrix entitled “Identification of Pollution and Emission at PT Bahari Gembira Ria". It informs about the emission and pollution group, type of pollution/emission, source of pollution, and management action for each emission/pollution type. The company has grouped pollution/emission into 2 groups namely Air Pollution and Emission (smoke, dust, noise – source: chimney boiler, generator, car transport, and road), and Group water Pollution (oil spill, diesel spill, chemical material spill – oil warehouse, warehouse of Hazardous and Toxic Waste and


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diesel tank, laboratory). PT Bahari Gembira Ria has conducted routine air and emission monitoring (every 6 months). The result of air and emission quality monitoring is explained and evaluated in the Implementation Report of RKL and RPL. Based on the result of emission quality test at generator, CO parameter was not in accordance with the environmental quality standard. The company has conducted preventive maintenance to the generator. Observation will be conducted to the result of emission air quality monitoring (especially CO parameter) at the next visit. To decrease air pollution and emission, masker should be used at the pollution source area. Routine cleaning of fiber grate boiler (every completion of cleaning), dust collector cleaning (daily), airlock cleaning (every month), ducting spill monitoring (every month), vehicle checking (daily), road maintenance around mill (daily – every morning), main road maintenance (depend on the field condition), vehicle speed restriction, smoke density installation. Noise handling was conducted by using earplug and machine maintenance (every two week). Air and soil pollution handling was conducted by using container and water trap. Liquid waste produced from production process at Ladang Panjang PMO was managed at Waste Water Pond / Disposal before being used by soil. PT Bahari Gembira Ria has permit to use liquid waste in accordance with the Decree of Muaro Jambi Regent number 301 Year 2011 on July 12th,2011 concerning Waste Water Use from Palm Oil Estate Owned by PT Bahari Gembira Ria. The wide area that can be applied accordance with the permit is 162 hectare. The permit is valid for 5 years since its publishing. PT Bahari Gembira Ria has monitored POME/ Palm Oil Mill Effluent management, such as:

Map of area where liquid waste was applied: Block C027 and C028

The number of flat bad was 176 pieces

Daily liquid waste application such as an application on April 2013 as much as 13.260 M3

Monthly liquid waste report, such as the amount of waste water debit. For example, in April 2013, the waste water debit was 5.115,41 M3.

Water quality monitoring in monitoring well at application area such as monitoring in November 2012 by Local Environmental Agency of Jambi Province, the result showed that pH: 5,73; BOD: 5 mg/L; Cd: <0,005 mg/L; etc.

Liquid waste quality


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.

There is a result of Social Impact Study to Palm Oil Management, January 2010. It presented 5 main social impact variables (Chapter 5.5), such as: 1. Character of population: immigrant community establishment; and elder people and kids group. 2. Structure of community and institution; 2 new villages: Pedaling Jaya and Sumber Agung. 3. Politic and social resources; local farmers that want to be scheme smallholders. 4. Change of individual and family; income pattern from natural income to worker income. 5. Community resources: forest land conservation and Land Use Permit to palm tree plantation area. PT Bahari Gembira Ria also has EIS Document (Environmental Impact Statement) and RKL/RPL (Environmental Management/Monitoring Plan) that have been approved by Jambi Governor number 304/KEP.GUB/ BAPEDALDA/2007 on August 2nd, 2007, cover 4000 hectare main plantation area, 6000 hectare nucleus area, and Palm Oil Mill with the capacity of 45 tons FFB/hour. There is a recording of social impact management and monitoring plan which presented in the Implementation Report of RKL/RPL for the Second Semester of 2012. PT Bahari Gembira Ria has + 6000 hectare area managed by using scheme smallholder. The result of social impact study showed that social impact to community and scheme smallholders are: income increasing, change of livelihood, etc. Cultivation technique in the main plantation area is also implemented in the nucleus plantation area by using Community Main Plantation – Transmigration (PIR – Trans) method. Now, there are 5 cooperatives as the suppliers of fresh fruit bunch to PT Bahari Gembira Ria. Those are: Marga Jaya, Karya Mandiri, Mitra Inti, Sumber Makmur and Karya Maju. PT Bahari Gembira Ria has established special organization that specifically manages this nucleus area led by a manager. It is intended to increase the quality of Fresh Fruit Bunch (FFB) that has similar quality from the main plantation area. The structure of nucleus management:

Manager : Ali Munar Lubis


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Assistant Division I : Syahnal Munthe Assistant Division II : Abner Simbolon KTU/Head of Department : Herry Petrus Nainggolan

Based on the field survey and interview with farmers and Marga Jaya Cooperative in Petaling Jaya Village, there was information about monthly socialization by Bina Tani related with the method and criteria of harvesting of fruit maturity standard.


6.2 There are open and transparent methods for communication and consultation between growers and/or millers, local communities and other affected or interested parties.

Company has a mechanism of communication and consultation for information request (RSPO/1.P/PI) dated March 8, 2010 that allows two-way communication between the company and the parties. The communication could be done verbally and written. All requests for information / communication / support / invitation of stakeholder information recorded in the log book. In general, the stakeholders request is invitation from the Department activities such as the Health Agency, Energy and Mineral Resources Agency, Social, Manpower and Transmigration Agency. Companies attended the Department‟s invitation. The company have list of stakeholders as follow :

Community leaders of Petaling Jaya village, ladang panjang village and Sumber Agung village

Army / Police

District Government

Regional Technical Agency / Center

Department of Manpower and Transmigration

Regional Revenue Agency,

Social Security (Jamsostek)

Insurance, Bank

GAPKI, NGO (Walhi Jambi, Sawit Watch Indonesia)

Labor Union (Risfary - SPPI Bahari Gembira Ria)

Buyers (PT Wilmar Indonesian Vegetable)

Contractor


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

There is a SOP of Community Complaint Handling (RSPO/6.3/PKM) PT Bahari Gembira Ria. This procedure is the guideline to handle community complaint to each operational unit. Community complaint is delivered to manager unit (written complaint) through Head of Department who write it in register book. There is also a SOP of Solution (number RSPO/2.2/PK). It regulates the process of conflict solution. Land claim from many parties is delivered to the Head of Administration to be recorded. It will be then responded by manager according to the authorization. There are samples of recording, such as:

- Logbook of community and employee complaints

- Minutes of meeting concerning conflict solution between PT BGR and Bujong Cs on October 26th, 2010; the summary of decree by the court about conflict case between PT BGR with Herman Cs (Farmer Group joint venture) decree of Sarjeti State Court number 18/Pdt-6/2009/PN Sgt on July 1st, 2010.

Legal opinion from the institution of forest and environment legal study which composed according to the letter from PT BGR number 021/BGR/UM/PSO/IV/2010 on April 12th, 2010; confidential letter about conflict solution such as Sugeng Farmer Group whose 84 ha area and RD Rustam Efendi Farmer Group whose 60 ha area. There is also a SOP about the Mechanism and Evaluation of the Affectivity to Legal Right and Traditional Right Loss on Land (RSPO/6.4/HLT) PT Bahari Gembira Ria. This procedure is the guideline in the mechanism of legal right and traditional right loss on land at each operational unit.


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


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own representative institutions.

There is also a SOP about the Mechanism and Evaluation of the Effectivity to Legal Right and Traditional Right Loss on Land (RSPO/6.4/HLT) PT Bahari Gembira Ria. This procedure is the guideline in the mechanism of legal right and traditional right loss on land at each operational unit. There is also a sample of land acquisition solving sample on behalf of M. Syarief M, the resident of Sungai Gelam Village, the samples of document are: - Confidential letter to sell land and its crops on behalf of M. Syarief M to PT Bahari Gembira Ria (wide area is 6,840 M in

“Sungai Gelam Village”), on April 9th, 2013. - The sketch of Land owned by Mr. Syariep 570 M x 12 M which compensated by PT Bahari Gembira Ria, on April 9th, 2013,

signed by land owned, head of sub village, head of RT 20, and head of Sungai Gelam Village. - Land right releasing on behalf of M. Syarief M to PT Bahari Gembira Ria, on April 9th, 2013. - Agreement Letter on Purchasing Land between the seller M. Syarief M and buyer representative of PT Bahari Gembira Ria.

The document was signed by two parties, 7 witnesses, and head of Sungai Gelam Village. - Minutes of meeting of land compensation payment on behalf of Mr. Syarief 570 M x 12 M and Legalization of Representation,

total payment IDR 158,000,000, on April 10th, 2013.


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.

Based on the agreement between Sumatera Plantation Cooperation Agency (BKS-PPS) and the Regional Board of Agricultural and Plantation Workers Federation SPSI of Jambi Province (2013), wage was regulated into IDR 1,324,000 per month and it has been accordance with the Decree of Jambi Governor number: 626/Kep.Gub/DISOSNAKERTRANS/2012 concerning the Determination of Minimum Wage of Jambi Province in 2013 as much as IDR 1,300,000 per month. The recording of the newest wage list has been shown. It itemizes the amount of basic salary, benefits, and insurance. There is a Collective Labor Agreement Sumatera Plantation Cooperation Agency (BKS-PPS) and the Regional Board of Agricultural and Plantation Workers Federation SPSI valid from November 14th, 2012 to November 13th, 2014 which regulated in the Decree of Directorate General of Industrial Relation and Social Security number: 191/PHIJSK-PPKAD/PKB/XII/2012. Facilities and infrastructure in this area :

- 9 Units of Permanent Houses for Plantation Staff

- 110 units of Semi-Permanent Houses for Plantation Staff

- 76 Units of Semi-Permanent Houses for Mill Staff

- 2 Praying Houses

- 1 Kindergarten

- 2 Daycare

- 1 Football Court

- 1 Tennis Court

- 1 Badminton Court

- 2 Volley Ball Court

- 2 Employees Bus

PT Bahari Gembira Ria still consistent to mention points related with manpower that must be fulfilled by the contractor as written in section 3 in the requirements and working standard in section 3.8. Contractor and all workers must comply with labor laws.


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.

Corporate policies respects the right of all personnel to form and join trade unions that stated in 5 points of Sustainable Plantation Management Guidelines No. 724/TQEM-SPMS/09 dated April 1, 2010, signed by the CEO (Chief Executive Officer). There is decree Number: 17/PC F.SPPP-K.SPSI/Ma.Jambi/III/2012 about Ratification / Confirmation Composition and Personnel Management Unit Federation of Agricultural and Plantation Workers Union of Indonesia (PUK-SPSI F.SPSI ) PT.Bahari Gembira Ria period 2012 -2017 with management structure are Suyanto (Chairman), Nitemo Gulo (Secretary), and Sudarsono (Treasurer). There is a attendance list of union meeting that held on March 14th, 2013 .



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

Memorandum from Head Plantation Operations Minamas Plantation POD-UM No. 121/VI/2010 dated June 7, 2010, concerning child protection policies, Point 6 state ban for using underage labor according Manpower Regulation. Upon documents review of employee data in March 201, there not found employees underage less than 18 years old at the time of recruitment. There is available Employee Data Records (Biography) PT BGR that records all employee personal identity, such as: name, date of birth, started working, and stop date or mutation. Based on document of employee data in March 2013, not found employees under 18 years old at the time of admission. The company has also put up some information boards (sign board) are placed around the housing of employees that stated an exclamation not to employ children under age.


6.8 Any form of discrimination based on race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliation, or age, is prohibited.

Company have Guidelines for Sustainable Plantation Management No Policy 724/TQEM-SPMS/09 about social policy, point 1 stated that All staff/employees should be should be treated fairly during the recruitment process, promotion, restriction, and job conditions without regard to personal issues such as race, degree, sex, ethnic, color of skin, physical condition (defective/imperfect), membership of organization, political views, religion, and/or age. There is document promotion grade / class, work rotation and mutations that do not distinguish workers based on class, race, ethnicity, nationality and religion.


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

Social Policy‟ number 724/TQEM-SPMS/09 point 4 explains that the company protects to criminal and sexual harassment. This policy has been approved by the CEO. Policy to reproduction right is written in the Collective Labor Agreement Section VIII about paid wage to days when worker are not working such as maternity leave. It is in accordance with the Law number 13 Year 2003 section 79 sub sections 2 (days off for pregnancy and miscarriage). It also regulated in the Decree of Director number 016/dir/PKB/I/2004 concerning allowance for birth/maternity. The newest management structure of Gender Committee of PT.BGR led by Ms Junaida, has several programs such as kids competition, house cleaning competition and green garden, playing ground preparation, and “Posyandu” integrated service center. Integrated service center has been realized. It can be seen from the picture during immunization program by PT BGR. Gender meeting has also been conducted on May 1st, 2013. It was attended by the Head of SU and Manager PSQM. It was attended by the management and member of gender committee and it can be proved by the presence of list of attendance. In accordance with the Collective Labor Agreement for period break employee and maternity leave employee, they still are paid. Policlinic gives a letter for maternity leave employee such as Ms. Tugiati from Division 1, fertilization section. She left on February 10th – May 9th, 2012 and she had earned full income during her leave. It can be proved from the list of income in February 2012 as much as Rp.1,132,680. There is also another example for breastfeeding mother, such as Ms. Triyanti. She was transferred from chemist disk and Ms. Kholifah was transferred from fertilization, and Ms. Yanti was transferred from fertilization section too. There is a method for oral and written complaint submission through company gender commission (SOP number RSPO/2.2/PK concerning Conflict and Complaint Solution). The form for complaint submission is also available. Oral complaint can be delivered directly to the supervisor while written complaint can be delivered through mail box that can be found at the office and mill. All employees‟ complaint both oral and written is recorded in the Logbook of Employee Complaint.


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

FFB prices are set by the Plantation Agency of Jambi Province based on meetings with stakeholders (representatives of each company, Farmers, etc.). There is a minutes of Meeting FFB Pricing of Palm Oil For May 2013 in the form of Table Calculation (Formula Price) and Attendance List that held on May 16, 2013 in the Office of Jambi Plantation. The company has collaborated with several local contractors. There is available examples of cooperation between PT Bahari


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Gembira Ria with Local Contractors, as follow: 1. letter of agreement between PT Bahari Gembira Ria with Zuwanda from Sungai Gelam village, Out town Jambi sub

district, Muaro Jambi District, Jambi province, letter of agreement – Local (No.021/PT. BGR-LPF/SPK-LKL/TRANSP-CPO/IX/2012) dated September 3rd, 2012 for transport Crude Palm Oil (CPO).

2. Recapitulation of CPO Transport from Mill to storage Tank PT Pelita Talangduku Jambi (October 2012) Zuwanda - CV 4 to PT BGR on October 4, 2012, Total IDR 31,370,000.

3. Invoice of CPO Transportation Cost of CV 4 (Four) Z PT BGR, dated October 4, 2012, total IDR 31,374,000. 4. Payment receipt of PT BGR to CV 4 (Four) Z, dated October 4, 2012, Total IDR 31,374,000


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

There are the company's contribution record, among other: 1. Evidence of Payment of Land and Building Tax PT BGR for taxable in Sungai Gelam Village Sungai Gelam sub district

Muaro Jambi district for IDR 541,905,104. 2. Implementation CSR PT BGR Year 2010 - 2011, Total IDR 979,900,000. 3. CSR Budget PT BGR Year 2013/2013, total IDR 110.800,000, the activities include Education, Sports, Social and

Health. 4. Documentation such as photo of road improvements in Sumber Agung village and aid of sacrifice animals (Cows). 5. Recapitulation CSR Budget year 2013/2014, Total IDR 120,100,000. 6. Documentation Job Training activities of Students from Jambi University in 2010.


PRINCIPLE #7 Responsible development of new plantings

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

There was no new development area after November 2007. There was inserting planting in 2009 at LPE, Division I, Block A012, A013, and A014 with wide area 271.47 Ha. Planting area after November 2007 has covered in Environmental Impact Assessment (EIA). Planting area after November 2007 has covered in RKL and RPL Implementation Report which routinely reported every 6 months to the related institutions. PT Bahari Gembira Ria has nucleus program for 5 KUDs. There are several coaching program for scheme smallholders that have been conducted by BGR, such as:

Socialization of nutrient deficiency in palm tree to Mingkung Jaya IV Farmer Group on April 14th, 2013. This activity was attended by 13 farmers. There is was a list of attendance and documentation from this activity.

Socialization FFB quality to Mingkung Jaya VIII Farmer Group on April 18th, 2013. This activity was attended by 10 farmers. There is was a list of attendance and documentation from this activity.


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

There was no new development area after November 2007. There was inserting planting in 2009 at LPE, Division I, Block A012, A013, and A014 with wide area 271.47 Ha. PT Bahari Gembira Ria has conducted semi detail survey and planting area after November 2009. As many as 271.47 Ha has been covered in this document. Information in the document consists of topography, type of soil, drainage, and required management. There is a recording for estate development accordance with the result of land suitability study. For example:

Based on the study result, Division I and II are classified into peat area. Its management can be conducted by using water management. Based on the result of document study and field survey, there were several canals for water management.

Based on the study result, empty fruit bunch can be applied at Division III. There is a recording of empty fruit bunch application monitoring at Division III.



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

There is a Decree of Forestry Minister number: 73/Kpts-II/1996 on February 27th, 1996 concerning Releasing Part of Forest Area in Parit River - Kumpeh River Forest Group, Jambi Province,14,349 ha for the Cultivation of Palm Oil Plantation by Using PIR Transmigration Pattern on behalf of PT Bahari Gembira Ria. There is a Document of Identification Result of High Conservation Area (HCVA) in 2010 by PT Bahari Gembira Ria. There was no new development area by PT BGR after November 2007. Current area is based on the Decree of Forestry Minister number: 73/Kpts-II/1996 on February 27th, 1996 as mentioned above concerning Releasing Part of Forest Area in Parit River - Kumpeh River Forest Group, Jambi Province, 14,349 ha for the Cultivation of Palm Oil Plantation by Using PIR Transmigration Pattern on behalf of PT Bahari Gembira Ria.


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

There was no new development area after November 2007. There was inserting planting in 2009 at LPE, Division I, Block A012, A013, and A014 with wide area 271.47 Ha. Based on the study result, marginal land at PT BGR is peat land. There is a map that describe about the description of peat land at PT BGR. Palm tree management in peat area is conducted by making canals and water level control through water gate. PT BGR has also monitored the height of water level and decreasing of peat area (subsidence).


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

Current area managed by PT Bahari Gembira Ria is based on the certificate of Land Use Permit in 2003. There are also evidences that meeting and agreement to community land compensation has been conducted. The company has solved land acquisition problem through an agreement with many parties. There is an evidence of this land acquisition problem solution in the form of Notification Letter of Free Cultivated Land from Muaro Jambi Regent number 593.41/979/PEM on July 6th, 2000. This document inform the recapitulation of cultivated land acquisition that ever been owned by 91 people from Ladang Panjang Village, Mestong Sub District in 919,29 hectare and total compensation was IDR. 256,615,750.


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

Land acquisition was conducted through agreement with several parties. There was an example of land acquisition on behalf of M. Syarief M from Sungai Gelam Village, the document evidences are listed below: - Recognition Letter of Land for 6,840 M in „Sungai Gelam‟ Village, on April 9th, 2013 - Confidential Letter of Land (Land Ownership) for 6,840 M in „Sungai Gelam‟ Village, on April 9th, 2013. - Confidential letter to sell land and its crops on behalf of M. Syarief M to PT Bahari Gembira Ria (wide area is 6,840 M in

„Sungai Gelam‟ Village), on April 9th, 2013. - The sketch of Land owned by Mr. Syariep 570 M x 12 M which compensated by PT Bahari Gembira Ria, on April 9th, 2013,

signed by land owned, head of sub village, head of RT 20, and head of „Sungai Gelam‟ Village. - Land right releasing on behalf of M. Syarief M to PT Bahari Gembira Ria, on April 9th, 2013. - Agreement Letter on Purchasing Land between the seller M. Syarief M and buyer representative of PT Bahari Gembira Ria.

The document was signed by two parties, 7 witnesses, and head of „Sungai Gelam‟ Village. There is an evidence of this land acquisition problem solution in the form of Notification Letter of Free Cultivated Land from Muaro Jambi Regent number 593.41/979/PEM on July 6th, 2000. This document inform the recapitulation of cultivated land acquisition that ever been owned by 91 people from Ladang Panjang Village, Mestong Sub District in 919,29 hectare and total compensation was IDR 256,615,750.


7.7 Use of fire in the preparation of new plantings is avoided other than in specific situations, as identified in the ASEAN


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guidelines or other regional best practice.

PT Bahari Gembira Ria has a document in the form of memorandum Minamas Plantation - Head office Jakarta number POD-UM-010/I/2009 on January 22nd, 2009 concerning the anticipation to fire and drought at the plantation area. The use of fire for waste removal and land preparation is avoided to anticipate fire. During this assessment, there was no land preparation for the development and extension of land. The use of fire for waste removal and land preparation is avoided to anticipate fire. During the assessment of this program, there was no land preparation for land development and extension. The company has established emergency response team. Response team consists of supervisor, general coordinator, fire coordinator, natural disaster coordinator, riots coordinator, medical team, and documentation. Mill team consist of general coordinator, processing team, maintenance team, and office/security Facilities for mill fire are hydrants (5 pieces) are located at threshing, pressing, clarification, boiler, kernel dispatch, power house and housing area of. There are 62 fire extinguishers. Hydrant, hose, nozzle, and installation of water source were also monitored.


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.

The company has managed and monitored social and environmental aspect regularly (every 6 months). It purpose to monitor the quality of the environment due to plantation operations as company's commitment to continuous improvement as follow :

Company has managed effluent for land application and not throws it to the river.

Company has reduced solid waste by use empty fruit bunch for fertilization, shells for boiler fuel, and midrib for Frond stacking.

Company has reduced emissions and pollution by maintenance sources of emission and pollution (e.g. boiler), and build hazardous waste temporary warehouse.

Company has reduced the social impact by recruiting locally, making CSR program.

Company has shown continuous improvement on the finding pre-assessment and assessment that 32 findings have been closed entirely.



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3.2. Summary of Assessment Report of Supply Chain

Clause (Module E) CPO Mills - Mass Balance Requirements

1 Documented Procedures

1.1 The facility shall have written procedures and/or work instructions to ensure the implementation of all the elements specified in these requirements. This shall include at minimum the following: a) Complete and up to date procedures covering the implementation of all the elements in these requirements. b) The name of the person having overall responsibility for and authority over the implementation of these requirements

and compliance with all applicable requirements. This person shall be able to demonstrate awareness of the facilities procedures for the implementation of this standard.

The company have procedure supply chain system (SOP-026/BGR/12) to identify the raw materials and end products so the relationship quality raw materials and products easy for traceability of product. People who responsible for the implementation are

a. Factory Manager is responsible to store / preserve all documents, records of raw materials, auxiliary materials used in the process and quality of final product. To verify the status of the products for shipped to the buyer according to the invoice, delivered orders, sales contract and minutes delivery of products. To provide adequate training supply chain certification to all staff who involved in the supply chain from receipt of raw materials, processes, storage and delivery products to buyers

b. PSQM assistant is responsible for checking FFB quality in mill and make daily recapitulation of FFB quality. To supervise delivery and loading / unloading of palm products and supervise CPO and Palm Kernel delivery. Conduct analysis and testing of raw materials and quality product at all production process, storage, maintain, distribute, and results analyze of quality of raw materials and products to related parties.

c. Assistant / Senior Assistant / bulking manager / logistics are responsible for transportation of CPO and palm kernel from mill to the bulking station / third parties. Handling and storage of CPO and palm kernel in the bulking station / third parties.


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

In the supply chain system procedure (SOP-026/BGR/12), regulate receiving, processing and documentation FFB certified and not certified. The Mass Balance supply chain system procedure explain :

Separating document weights for FFB certified and not certified

In the daily report stated production quantity, CPO and kernel that are certified or non-certified.

Making a summary report every three months of production of CPO and kernel that are certified and non-certified.


2 Purchasing and goods in

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

Company verifies FFB receipt both from estates and smallholders. The truck brings FFB delivery Ticket that explains FFB certified or FFB not. The record of FFB RSPO certified and not certified was segregated since FFB receipt at the factory TBS, sorting until sales. for example

Delivery Ticket of FFB RSPO Certified as much 6,326 kg from Ladang Panjang estate on 23 April 2013

Delivery Ticket of FFB RSPO non-Certified as much 12,468 kg from smallholders on 23 April 2013.


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

There are FFB production data sourced from estate, farmers/other sources and factory. For example: 1. Estate: 41,912.65 Kg FFB supply to the mill 32,122.24 tones/year.


ASSESSMENT REPORT

SPO – 4006a.5


2. Mill: FFB processed as 170,560.66 Kg with capacity of 30 tons/hour; output CPO 35,636,725 tons with extraction 20.59%, kernel output 6,808,493 Kg with extraction 3.99%.

3. Smallholders: 76.48 FFB supply to mill 76.48 Kg. 4. Village cooperative unit: 138,351,69 Kg FFB supply to mill 138.35,69 Kg.


3 Record keeping

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

Recording products of RSPO certified and not certified was segregated since receipt in Mill, sorting until sales. For example:

Delivery Ticket of FFB RSPO Certified as much 6,326 kg from Ladang Panjang estate on 23 April 2013

Delivery Ticket of FFB RSPO non Certified as much 12,468 kg from smallholders on 23 April 2013.

Sales of 14,000 tons palm oil to Wilmar Nabati Indonesia with address Jalan Putri Hijau Kesawan, Medan on March 18, 2013. The Products is RSPO Mass Balance and shipped by road (DO Transportation 083/IV/CPO/BGR/2013).

Sales of 350,000 kg Core palm oil palm to Berkat Sawit with address Cideng Road West - Central Jakarta on 24 April 2013. The product is RSPO Mass Balance and DO transport 32/DO-SIE/IKS/IV/2013.


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

The retention period of records and documents is 5 years


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

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

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

Recording products of RSPO certified and not certified was segregated since receipt in Mill, sorting until sales. All FFB sourced from estate (FFB Certified) and smallholders (Non-certified) have been recorded for monthly, 3 months and annually. Kernel and CPO was recorded for 3 monthly and annually.


3.4 The following trade names should be used and specified in relevant documents, e.g. purchase and sales contracts, e.g. *product name*/MB or Mass Balance. The supply chain model used should be clearly indicated.

Sales invoice has listed information regarding the name / address buyers, the date issued, product description and amount of product shipped. for example:


Sales of 350,000 kg Core palm oil palm to Berkat Sawit with address Cideng Road West - Central Jakarta on 24 April 2013. The products are RSPO Mass Balance and DO transport 32/DO-SIE/IKS/IV/2013.


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

Not Applicable


4 Sales and goods out


ASSESSMENT REPORT

SPO – 4006a.5


4.1 The facility shall ensure that all sales invoices issued for RSPO palm oil delivered include the following information: (a) The name and address of the buyer (b) The date on which the invoice was issued (c) A description of the product, including the applicable supply chain model (Segregated or Mass Balance) (d) The quantity of the product delivered (e) Reference to related transport documentation

Recording products of RSPO certified and not certified was segregated since receipt in Mill, sorting until sales. Sales invoice has listed information regarding the name / address buyers, the date issued, product description and amount of product shipped. for example:


Sales of 350,000 kg Core palm oil palm to Berkat Sawit with address Cideng Road West - Central Jakarta on 24 April 2013. The product is RSPO Mass Balance and DO transport 32/DO-SIE/IKS/IV/2013.


5 Training

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

Employees are trained g implementation of supply chain certification system, especially for personnel who directly responsible. Training conducted on May 1, 2013 with speaker Rinno Ferryno regarding the role of supply chain certification and supply chains mechanism start from tracking the source of raw materials, processes and delivery product.


6 Claims

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

The Company recorded FFB production of certified and non-certified that receipt in Ladang Panjang POM. Production of CPO and PK certified are well documented, there is only certified products that are claimed by company. Coding of invoices and purchase invoices have indicated separation RSPO certified and non-RSPO certified.



ASSESSMENT REPORT

SPO – 4006a.5


3.3. Conformity Checklist of Certificate and Logo Use

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

S-1 PT Bahari Gembira Ria not use RSPO logo on each document and its products, be it on-product or

off-product. √


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


off-product. √


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


off-product. √


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


off-product. √



ASSESSMENT REPORT

SPO – 4006a.5


3.4. Summary of RSPO Partial Certification.

Total companies observed (0.5 √Y) Where Y is the total of uncertified RSPO registered company. The Management Unit name : PT Guthrie Pecconina Indonesia (KKPA Sungai Jernih). Date of Observation: 29 January 2013 – 2 February 2013

2.1

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

X or√

There is evidence of law fulfillment include: 1. Tenure of land compile with UU. 5 year 1960 on Agrarian Principles, namely HGU Certificate

No. 664/2003, 552/2003 for an area of 10139.91 ha. 2. Providing social security such as labour social assurance (Jamsostek) compile with UU No.

3 year 1992. 3. Providing equipment Occupational Safety and Health program for all employees compile with

UU No.. 1 year 1970. 4. Environmental management document preparation progress (RKL / RPL) compile with UU

no. 23 year 1997. 5. No land clearing by burning compile with UU No.. 18 year 2004. 6. No discrimination against employees compile with UU No. 21 years 1999 - ratification of the

ILO's anti-discrimination stated in Collective Labor Agreement. 7. Allocating some of the area as a protected area compile with Presidential Decree No.. 32

year 1990 and UU No. 41 year 1999 about Forestry. (Identification of HCV by Aksenta in July 2012).

8. Giving wages above the minimum wage. Corporate compliance to legality of land tenure, the implementation of environmental and social governance, labor protection, as well as the submission of the report to agencies (eg Environment Agency, Government, and the Department of Forestry and Plantations Musi Banyuasin) stated that the GPI is quite obedient and consistent with the rules.

√


2.2

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

X or√

Company shown the documents of : 1. location Permit compile with Regent of Musi Banyuasin decree No 262 year 2011 covering

area of 4,000 ha 2. location Permit compile with Regent of Musi Banyuasin decree No 0217 year 2011 covering

area of 2,000 ha 3. Determination of smallholder as 262 Candidates compile with Regent of Musi Banyuasin

decree No. 0258 year 2010. 4. Cooperation Agreement with KUD Sinar delima No.001/Plasma/GPI-KUD/I/2012 about

development of Oil Palm Plantation with KKPA Partnership (Cooperative Credit Scheme) 5. Plantation business permit (IUP) smallholder based on regent decree No. 0265 of 2010

(Core 800 ha and smallholder 1200 ha in Gajah Mati village, Sungai keruh subdistrict) and IUP based on regent decree No.. 282/KPTS/IUP/DISBUN/2011 (Core 1600 ha and smallholders 2400 ha).

6. Distribution plan had already plots, is waiting approval from village cooperative unit (KUD) distribute to smallholders

There is statement of the land handover from land owners such as pedestal Business Right and letter of recognition. For example, land handover statement on behalf of Aziz Ali with pedestal Business Rights and letter of recognition dated July 9, 2007 for an area of 2.8 ha approved by Head of Gajah mati Village and a letter of recognition on behalf of Aziz Alifor land area of 2.8

√


ASSESSMENT REPORT

SPO – 4006a.5


hectares in Gajah Mati Village on February 24, 2008 and registered in Subdistrict Office No.593/126/2009/XII/2008 dated December 3, 2008.


6.3

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

X or√

There is Consultation and Communication procedures to Community (RSPO/6.2/KKM), Society Complaint Handling (RSPO/6.3/PKM), Employee Complaints Handling (RSPO/6.5/PKK) and conflict resolution (RSPO/2.2/PK) . It had socialize to communities around the estate are (1) Talang Piase Village (May 14, 2011), (2) Talang Ilo III village (May 27, 2011), (3) NAPAL Village (May 29 20 110) and (4) Karang Ringin Village II (May 26, 2011), (5) Rantau Kasih Village (May 13, 2011). The socialization Record consist of time, place, material, photo and attendees list. Technical of disputes solution as effective, timely and correct manner describe in mechanism (flow chart) the complaints handling as follow : Complaints from internal / external received by Kasie and note it, then delivered to the manager to make decision or if needed to consult with head department and last made decision. Complaints from workers can solve in two days (counting from the complaint entered into management until realization decision), while society complaints handling is depending on the type of complaints, if the complaint was mild and the facilities available, it can solve more or less three days, but if complaints is significant and need consultation with head office management, approximately one week.

√


6.4

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

X or√

Procedures to identify and calculate the compensation for loss of legal or customary rights over the land covered by procedure (SOP) Conflict Resolution (RSPO/2.2/PK) and have been socialized All proof related with conflict resolution is available in form of statement of the land handover from land owners such as pedestal Business Right and letter of recognition.For example land handover statement on behalf of Aziz Ali with pedestal Business Rights and letter of recognition dated July 9, 2007 for an area of 2.8 ha approved by Head of Gajah mati Village and a letter of recognition on behalf of Aziz Alifor land area of 2.8 hectares in Gajah Mati Village on February 24, 2008 and registered in Subdistrict Office No.593/126/2009/XII/2008 dated December 3, 2008.

√


7.3

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

X or√

There is identification of HCV conducted in July 2011 by AKSENTA. These documents ensure that no area of HCV is used for development of new KKPA plantations.

√


7.5

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

X or√

Procedures to identify and calculate the compensation for loss of legal or customary rights over the land covered by procedure (SOP) Conflict Resolution (RSPO/2.2/PK).There is no contents revisions or mechanisms of compensation calculation. It is similar to previous audits. There is statement of the land handover from land owners such as pedestal Business Right and

√


ASSESSMENT REPORT

SPO – 4006a.5


letter of recognition. For example, land handover statement on behalf of Aziz Ali with pedestal Business Rights and letter of recognition dated July 9, 2007 for an area of 2.8 ha approved by Head of Gajah mati Village and a letter of recognition on behalf of Aziz Alifor land area of 2.8 hectares in Gajah Mati Village on February 24, 2008 and registered in Subdistrict Office No.593/126/2009/XII/2008 dated December 3, 2008. Development of smallholder based on agreement between KUD Sinar delima with PT GPI in accordance of Cooperation Agreement No.001/Plasma/GPI-KUD/I/2012 about development of Oil Palm Plantation with KKPA Partnership (Cooperative Credit Scheme). Determination of smallholder as 262 Candidates compile with Regent of Musi Banyuasin decree No. 0258 year 2010.


7.6

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

X or√

There is statement of the land handover from land owners (pedestal Business Right and letter of recognition) that voluntarily agreed. For example, land handover statement on behalf of Aziz Ali with pedestal Business Rights and letter of recognition dated July 9, 2007 for an area of 2.8 ha approved by Head of Gajah mati Village and a letter of recognition on behalf of Aziz Alifor land area of 2.8 hectares in Gajah Mati Village on February 24, 2008 and registered in Subdistrict Office No.593/126/2009/XII/2008 dated December 3, 2008.

√



ASSESSMENT REPORT

SPO – 4006a.5 Page 36 Prepared by Mutuagung Lestari for Ladang Panjang POM – PT Bahari Gembira Ria

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

3.5.1 Identification of Findings, Corrective Actions and Observations at Verification Major

No Ref Std

Finding Area Grade Time

Limits Corrective Action

Request Observation Status

Closing Date

2010.30 Minor 2.2.2; Major 6.3.1

Conflict resolution mechanism. SOP number RSPO/2.2/PK on Conflict Resolution, should be socialized to all parties so that the designed mechanism in the SOP can be accepted by all parties.

Estate CFA S1 26/11/2011 The company has designed progress to socialize on December 11 2010. The schedule was signed by Plasma Manager. 27/12/2011 PT BGR has conduct socialization of conflict resolution mechanisms on December 2, 2011 to the community witnessed by Sub district head of Sungai Gelam.

Closed 12/27/2011

2010.32

Minor 5.2.2

Species management and HCV program supervision officer. The company has shown Certificate number 449/BGR-HCV/VIII/2010 on special officer appointment for species management and HCV, however it was not able to show competency verification from the appointed officer, for example, training certificate or the officer‟s track record of job experience.

Mill and Estate

Minor S-1 The company has to be able to prove that the officer appointed as species management monitoring program and HCV supervisor are competent to related field.

27/12/2011 BGR has appointed competent HCV area managing officer and have been trained Basic Training on HCV management on 14-16 November 2011.

Closed 12/27/2011

2010.33 Minor 5.3.2

Waste monitoring record - BGR has owned waste monitoring record, however there was not enough evidence to be reported routinely (every 3 months) to

Mill and Estate

Minor S-1 BGR has to submit 3 (three) month-report on waste storage based on current regulation.

27/12/2011 BGR has reported hazardous waste monitoring in PT.BGR – Ladang Panjang POM on December 10, 2011 to the relevant agencies.

Closed 12/27/2011


ASSESSMENT REPORT


related institution according to the article 4 of Decree number 246 year 2009

2010.34 Major 7.3.2

Area layout management of new planting. BGR has not shown HCV identification at area of 379.33 Ha planting year 2007 which is located inside the area of the HGU recommendation process (Land Use Rights)

Estate Major Before certificate issued

BGR has to provide new planting area management plan (November 2005 – November 2007) with a clear and layout management and deliberately consider HCV existence.

12/27/2011 BGR has had a document on the identification of HCV in July 2011 covering the area of 379.33 hectares. BGR has implemented a management plan for the area and coordinate with relevant stakeholders such as Natural Resources Conservation Body (BKSDA) Jambi based on. Implementation and monitoring of protected area management at 2007 planting area according to the technique of cultivation of peat lands such as set of protected areas, managing the water level of peat, peat prevent subsidence rate, provide the protected areas information board. 02/23/2012. BGR has sent document of Rencana dan Realisasi Pengelolaan dan Pemantauan Kawasan Lindung (Plan and Realization of Monitoring and Management Protected Area) to stakeholders was recorded and documented.

Closed 02/23/2012

2010.35 Major 7.5.2

New land clearance socialization evidence. BGR hasn‟t been able to show the record of new land clearance socialization result.

Estate Major Before certificate issued

BGR has to show the record of plantation opening socialization result for planted area after November 2005 at suggested HGU (Land Use Rights) area.

27/12/2011 Described in of Surat Pelepasan Hak Atas Tanah (land rights release letter) Document for the land development covered area (after November 2005) of article 2 which states that the first party (residents) know that land rights release for oil palm plantation project of PT.BGR.

Closed 12/27/2011


ASSESSMENT REPORT


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

CAR No

Ref Std

Finding Area Grade Time

Limits Corrective Action Observation Status

Closing Date

2013.01 Major 2.1.1 Major 5.3.2

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

Major Mill 23 July 2013

Companies must comply with all laws and regulations

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

Closed 27 May 2013

2013.02 Major 4.6.4

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

Major mill 23 July 2013

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

27 May 2013 All pesticide packaging waste in the mill warehouse has been cleaned in accordance procedures. Used packaging such as Kenlon, Ally, Agenda, Basta, and Metafuron washed in BSS (Block Spraying System), then handed back to the mill warehouse. The washing documentation is available.

Closed 27 May 2013

2013.03 Minor 4.7.6

Evidence of compliance with occupational health and safety program and first-aid box

Minor Mill Surveillance 2

a. The Company should ensure fires

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

Closed 27 May 2013


ASSESSMENT REPORT


in the workplace.

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

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

equipment is well function.

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

properly. b. P3K box is available in work place.

2013.04 Minor 4.7.3

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

Minor Mill Surveillance 2

Companies must ensure all employees implement occupational Health and Safety

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

Closed 27 May 2013


ASSESSMENT REPORT


3.5.3 Opportunity for Improvement

No Ref Std Descriptions

1 Major 2.2.1

PT Bahari Gembira Ria should establish an action plan and ensure follow-up of HGU Certificate application for area of 2,178.16 ha.

2 Minor 4.7.2

Company has conducted Health checks to employees. The Parameters are physical, laboratory, radiology, ECG, spirometry. Company should check Audiometric for employees who working in high noise areas.

3 Minor 4.7.3

The risk such as accidentally bitten during harvest work, manual maintenance (pruning, slashing, weeding) and spraying, should be included in the HIRAC although extremely rare case

4 Major 5.2.3

The Company should follow up procurement (planting) in riparian areas

5 Minor 5.5.1 Optimization team of fire fighting in estate and factories.

6 Major 5.6.2 There are test results of parameters quality did not meet the environmental quality standard (CO), so that companies should ensure preventive maintenance is carried out effectively and diesel emission test results in next period meet with environmental quality standards.

3.5.4 Noteworthy Positive Components

No Ref Std Descriptions

1

Company has obtained a RSPO Certificate in 2012

2

The company commitment to implementing the principles of sustainable palm oil management

3

The company has provided adequate facilities for employees


ASSESSMENT REPORT


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

Public Issues (Institution/ NGO/Community)

Management Responses Auditor Responses

Margajaya village cooperative unit (Treasurer and Production Department)

Activities that have been performed by the estate management, among others:

Rotation of crops for smallholders 3 times a month.

There are activities from „Bina Tani‟ PT Bahari Gembira Ria such as

socialization harvesting procedure every 3 times each month.

Cooperation with PT Bahari Gembira Ria has existed since 1995 and has

been running well

Most of the farmer‟s loans had repaid.

Cooperation with PT Bahari Gembira Ria has existed since 1995 and no problems that inhibit

cooperation

Companies should encourage people to be more independent.

Smallholder’s farmer Chairman of Tritunggal Makmur and Member of Tani cooperative unit

Cooperation with PT Bahari Gembira Ria has been running well

There are no problems related to land conflict

Farmers who have paid off their credit at the Bank, has had got

ownership certificate

Cooperation with PT Bahari Gembira Ria has existed since 1995 and no problems that inhibit

cooperation

Companies should encourage people to be more independent.


ASSESSMENT REPORT


4.0 CERTIFIED ORGANISATION'S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Sign-off of Assessment Findings

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

Signed on behalf of:

PT Bahari Gembira Ria

Mutuagung Lestari

Head of Plantation Sustainable Quality Management, Minamas Plantation

Lead Auditor

Mohamad Pirabaharan

Oktovianus Rusmin

12 June 2013

12 June 2013


ASSESSMENT REPORT


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

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

Date of Contact

1 Margajaya village cooperative unit (Treasurer and Production Department)

Petaling Jaya Village

Interview 23 Mei 2013

2 Chairman of Tritunggal Makmur

and Member Tani of Tunas

Muda

Petaling Jaya Village

Interview 23 Mei 2013

3 Rector Jambi University Jambi

Letter 20 Mei 2013

4 Head of National Defence

Office, Muaro Jambi District Jambi

Letter 20 Mei 2013

5 Head of Forestry and

Plantation, Muaro Jambi District

Jambi

Letter 20 Mei 2013

6 Head of Manpower and

Transmigration, Muaro Jambi

District

Jambi

Letter 20 Mei 2013

7 Head of Environmental Agency,

Muaro Jambi District

Jambi

Letter 20 Mei 2013

8 Chairman of NGO‟s Wahli

Jambi

Jambi

Letter 20 Mei 2013

9 Head of Nature Conservation,

Jambi

Jambi

Letter 20 Mei 2013


ASSESSMENT REPORT


DATE 21 – 24 May 2013

TIME PROCESSES / CLAUSES TO BE AUDITED AUDITOR

21/05/2013 08.00 –10.00 13.30 – 14.00 14.00 – 14.30 14.30 – 17.00

Travelling Travelling from Jakarta to Jambi Jambi - BGR Opening Meeting Review of previous assessment findings

All TEAM

22/05/2013 08.00 – 12.00 14.00 – 17.00

Field Observation Ladang Panjang Estate Legal boundaries, housing complex and facilities (clean water, electric, worship buildings, health clinic, school, landfill and emergency response), harvesting activity, spraying activity, conservation area, IPM implementation, chemical storage (mixing and handling mechanism), workshop and interviews (payments, sexual and racial harassment, child labor, religious, complaints procedures)

Stakeholders Consultations (Villagers) and Government Institution Lunch & Pray

Documentation Review e.g.

Public Consultation clarification

Continue of Checklist Review and Follow up from Field Observation

ID / MM

OR / ARD

OR / MM / ID / ARD

23/05/2013 08.00 – 12.00 13.00 – 17.00

Field Observation Ladang Panjang P.O.M

Documentation, workers interview (payment, training, facilities, racial harassment), safe working practices, safety and health equipments, fuel, water usage, process station, waste water treatment plant, workshop, hazardous waste storage and handling.

BGR Legal Operational Area - Legal Boundary - Conservation area

Lunch/Pray

Continue of Checklist Review and Follow up from Field Observation

Field observation and Stakeholders consultation clarification

OR / MM / ID

ARD

OR / MM / ID / ARD

24/04/2013 08.00 – 09.00 09.00 – 11.00 12.30 – 13.00 15.30 – 17.00

Clossing meeting Travelling Travelling from BGR to JAMBI JAMBI to Jakarta

ALL TEAM

Appendix 2. Assessment Program


ASSESSMENT REPORT


Appendix 3. Glossary

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

APAR : Alat Pemadam Api Ringan (Fire Extinguisher)

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

B3 : Bahan Beracun and Berbahaya (Hazardous Material Waste)

BLHD : Badan Lingkungan Hidup Daerah (District Environment Body)

BOD : Biological Oxygen Demand

BPN : Badan Pertanahan Nasional (National Land Agency)

CD : Community Development

CPO : Crude Palm Oil

CSR : Coorporate Social Responcibility

HACCP : Hazard Analysis Critical Control Point

HCV : High Conservation Value (Nilai Konservasi Tinggi)

HGU : Hak Guna Usaha. (Land Use Permit)

IUP : Izin Usaha Perkebunan. (Plantation Operation Licence)

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

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

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

KLH : Kementrian Lingkungan Hidup (Environment Ministry)

LC : Land Clearing

LPE : Ladang Panjang Estate

LPF : Ladang Panjang Factory

OER : Oil Extraction Rate

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

PHT : Pengendalian Hama Terpadu (Integrated Pest Management)

PK : Palm Kernel

PKO : Palm Kernel Oil

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

PP : Peraturan Pemerintah (Government Regulation)

POM : Palm Oil Mill

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

PSD : Plantation Services Departement

PSQM : Plantation Sustainability and Quality Management

SOP : Standard Operating Procedure

SP : Serikat Pekerja (Worker Union)

SPK : Surat Perjanjian Kerja (Minutes of Agreement)

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

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