Roundtable on Sustainable Palm Oil - tuv.com · PDF fileTimber Legality of Verfication, auditor for SMK3, auditor for QMS and EMS and auditor for RSPO & ISPO at TUV Rheinland Indonesia

Roundtable on Sustainable Palm Oil

Supply Chain Certification Report Report no.: SCCS_15010

Assessment against RSPO Supply Chain Certification Systems November 2011

Louis Dreyfus Commodities PTE LTD

PT Dermaga Kencana Indonesia Balikpapan – East Kalimantan, Indonesia

Date of assessment : October 14-15, 2014 Report prepared by : Hendra Fachrurozy

(RSPO Lead Auditor)

Certification decision by : M. Basharul Asana

(Head of Certification Body of PT TUV Rheinland Ind onesia)

Certification Body : PT TUV Rheinland Indonesia

Menara Karya, 10th Floor Jl. H.R. Rasuna Said Block X-5 Kav.1-2

Jakarta 12950,Indonesia Tel: +62 21 57944579 Fax: +62 21 57944575

www.tuv.com/id

TABLE OF CONTENTS

1.0 SCOPE OF SUPPLY CHAIN CERTIFICATION ASSESSMENT 3

1.1 Executive Summary and Scope of Assessment 3 1.2 Certification Details 3 1.3 Organisational Information / Contact Person 4 1.4 Actual production volumes and projected outputs. 4 1.5 Summary of Previous Assessment 6

2.0 ASSESSMENT PROCESS 7

2.1 Certification Body 7 2.2 Qualifications of Lead Assessor and Assessment Team 7 2.3 Assessment Methodology & Agenda 7

3.0 ASSESSMENT FINDINGS 9

3.1 Description of Supply Chain Management System 9 3.2 Identified Non-conformances against RSPO SCCS Requirements, Corrective Actions Taken

and Auditors Conclusion 14 3.3 Conclusion and Recommendation for RSPO Supply Chain Certification 17

4.0 CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF INT ERNAL

RESPONSIBILITY 18

4.1 Date of Next Surveillance Visit 18 4.2 Acknowledgements of Internal Responsibility and Formal Sign-Off by Client 18

APPENDICES 19

Appendix 1: Details of Supply Chain Certification Certificate 19 Appendix 2: List of Abbreviations 21 Appendix 3: Observations and Opportunities for Improvement 21 Appendix 4: Supply Chain Certification Audit Closing Meeting Summary 22

RSPO Certification Assessment Report

PT Dermaga Kencana Indonesia – Balikpapan, East Kalimantan

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QMF: RSPO-007c-13 rev.2

1.0 SCOPE OF SUPPLY CHAIN CERTIFICATION ASSESSMENT

1.1 Executive Summary and Scope of Assessment

The operations of PT Dermaga Kencana Indonesia (subsidiary of Louis Dreyfus Commodities Asia PTE LTD) were assessed against Module B and C of the RSPO Supply Chain Certification (SCC) document (November 2011). The scope of the Supply Chain Certification assessment covers the implementation of the Segregation (SG) and Mass Balance (MB) supply chain model of PT Dermaga Kencana Indonesia. This is not a multi-site certification. According to information stated on Industry Bussiness Permit no. 1236/1/IU/PMA/2013 dated on November 22, 2013 from Indonesian Investment Coordinating Board (Badan Kordinasi Penanaman Modal) the mill has capacity of production are CPO (KBLI : 10431) : 240,000 MT, Palm Fatty Acid Dislalate (PFAD) (KBLI : 10432) : 25,000 MT and Refined Bleached Deodorized Palm Oil (RDBPO) : 465,000 MT.

The volume of palm oil product was sold by PT Dermaga Kencana Indonesia in year 2013 and forecase year 2014.

Product Type Product sold for year 2013 Projection for year 2014

PFAD 8,176 19,010

Refined Bleached Deodorized Olein 53,637 208,156

Refined Bleached Deodorized Stea-rin

9,168 54,178

Refined Bleached Deodorized Palm Oil

73,512 285,145

Crude Palm Oil 259,827 69,287

The assessment was carried out on October 14-15, 2014 and a total of 6 (six) non-conformities were found.

1.2 Certification Details

The details of RSPO certification of PT Dermaga Kencana Indonesia are as per the table below : Table 1 : RSPO Certification details of PT Dermaga Kencana Indonesia

Refer to Appendix 1 for further details of the RSPO Supply Chain certificate.

RSPO Membership no.: 2-0383-12-000-00 on behalf Louis Dreyfus Commodi-ties Asia PTE LTD

Membership starting on : December 2, 2012

RSPO Supply Chain Certificate no. : 824 503 15010

Date of RSPO Supply Chain Certificate & Validity :

January 25, 2015 & January 24, 2020



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1.3 Organisational Information / Contact Person

Contacts details of the company are as follows:

1.4 Actual received and sold volumes Table 2: Records of Certified Material Recived/ Pu rchased *

Supplier RSPO Certifi-cate Number

Product UTZ Number Volume

- - - - - Note : *). This is main assessment for PT Dermaga Kencana Indonesia so that auditee is not purchase raw material as certified claim

Table 3: Records of Certified Palm Oil Product Sol d*

Buyer RSPO Certifi-cate Number

Product UTZ Number Volume

- - - - - Note : *). This is main assessment for PT Dermaga Kencana Indonesia so that auditee is not purchase raw material as certified claim

Table 4 : Records of Material Received/ Purchased year 2013*

Supplier RSPO Certificate

Number Product UTZ Number Volume (MT) Status /

Model SC

Year 2013

PT Agro Inti Kencana Mas - CPO - 9,400 -

PT Sawit Permai Lestari - CPO - 7,800 -

PT Sawit Kaltim Lestari - CPO - 21,650 -

PT Swadaya Andika - CPO - 800 -

PT Laguna Mandiri - CPO - 600 -

PT Langgeng Muara Makmur

- CPO - 600 -

PT Karangjuang Hijau Les-tari

- CPO - 1,800 -

PT Jaya Mandiri Sukses - CPO - 100,800 -

Company Name : PT Dermaga Kencana Indonesia

Address : Head Office : Wisma 46 – Kota BNI 24th floor, Suite 24.12, Jl Jenderal Sudirman Kav.1 Jakarta 10220

Representative Office : Jl Tulip Bloc E5 No.1, Balikpapan Baru Sub Dis-trict –Balikpapan District, East Kalimantan Province

Plant : Jl Sungai Tempadung RT 009, Kariangau Village, West Balikpapan Sub District, Balikpapan District, East Kalimantan Province

Plant location (geografis) :

010 06’ 31.7” S; 1160 44’ 07.7” E

Contact Person : Roy Martin Silalahi

Position : Management Representative

Telephone / Fax : +62 21 572 7535-36 and +62 542 872436

Email : [email protected]



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Supplier RSPO Certificate

Number Product UTZ Number Volume (MT) Status /

Model SC

PT Rea Kaltim Plantations - CPO - 106,200 -

PT Alamraya Kencana Mas - CPO - 16,000 -

PT Suryabumi Tunggal Perkasa

- CPO - 54,050 -

Total 319,700

Year 2014 (January to September)

PT Agro Inti Kencanamas - CPO - 5,200 -


PT Sawit Kaltim Lestari - CPO - 25,700 -

PT Swadaya Andika - CPO - 700 -

PT Laguna Mandiri - CPO - 3,400 -


- CPO - 1,400 -

PT Dharma Satya Nusanta-ra

185 0 3032 001 CPO - 6,700 MB

PT Jaya Mandiri Sukses - CPO - 46,400 -

PT Rea Kaltim Plantations - CPO - 77,750 -

PT Alamraya Kencana Mas - CPO - 13,300 -


- CPO - 5,000 -

Total 186,550

Note : *). This is main assessment for PT Dermaga Kencana Indonesia so that auditee is not purchase raw material as certified claim

Table 5 : Records of Palm Oil Product Sold*

Buyer RSPO Certificate

Number Product UTZ Number Volume (MT) Status / Model

SC

Year 2013

Louis Dreyfus Commodities Asia

- CPO - 214,077 -

- PFAD - 6,657 -

- RBDOL - 49,361 -

- RBDPO - 53,557 -

- RBDStrn - 8,098 -

Green Eagle Holdings PTE LTD

- CPO - 20,750 -

- PFAD - 1,519 -

- RBDOL - 4,276 -

- RBDPO - 19,955 -

- RBDStrn - 1,070 -

Sawindo Agri PTE LTD - CPO - 21,000 -


Total 404,320

Year 2014 (January to September)


- CPO - 78,965 -

- PFAD - 1,740 -

- RBDPO - 21,115 -

- RBDOL - 2,880 -

- RBDStrn - 1,503 -

Louis Dreyfus Commodities Asia

- CPO - 51,936

- PFAD - 15,937

- RBDPO - 197,013



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Buyer RSPO Certificate

Number Product UTZ Number Volume (MT) Status / Model

SC

- RBDOL - 42,988

- RBDStrn - 10,194

Sawindo Agri PTE LTD - CPO - 3,000

Total 427,271

Note : *). This is main assessment for PT Dermaga Kencana Indonesia so that auditee is not sold product as certified claim

1.5 Summary of Previous Assessment

This is main assessment so that there is not summary of previous assessment.



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2.0 ASSESSMENT PROCESS

2.1 Certification Body PT TUV Rheinland Indonesia is member of Group TÜV Rheinland Group, a global leader in independent test-ing and assessment services. The TÜV Rheinland Group was established in 1872 with offices located in over 490 locations in 62 countries on all five continents. PT TUV Rheinland Indonesia offers certification for a wide range of management systems according to established international standards including ISO 9001, ISO 14001, OHSAS 18001, SA 8000, as well as CDM Validations and Verifications. PT TUV Rheinland Indonesia’s office is located in Jakarta, Indonesia.

2.2 Qualifications of Lead Assessor and Assessment Team

Name Position Qualifications / Experience

Hendra Fachrurozy

Lead Au-ditor

Education: Bachelors Degree in Forestry - Bogor Agriculture Institute. Indo-nesia, (1995 to 2000).

Trainings attended : ISO 9001 : 2008 lead auditor course - Neville Clark (2011), ISO 14001 : 2004 lead auditor course - TUV Rheinland Indonesia (2011), SMK3 auditor course – Department of manpower and transmigration of the Republic of Indonesia (2009), Sustainable Forest Management (SFM) – Forestry Education and Training Centre (2010), Timber Legality of Verifica-tion - Forestry Education and Training Centre (2010), RSPO Lead Auditor Course – Pro Forest & Wild Asia (2011), RSPO SCCS Lead Auidtor Course – David Ogg and Partners (2012), ISPO Lead Auditor Course – Indonesian Sustainable Palm Oil Commision (2012), RSPO RED Lead Auditor Course – RSPO & Brinkman Consultant (2013).

Working experience: Experienced as Junior Consultant at PT Surveyor In-donesia (2002 s/d 2010), assesor for SFM –mandatory (PHPL & PHTL), as-sessor for industry performance assessment (IPHHK)-mandatory, auditor for Timber Legality of Verfication, auditor for SMK3, auditor for QMS and EMS and auditor for RSPO & ISPO at TUV Rheinland Indonesia.

2.3 Assessment Methodology & Agenda

The supply chain certification assessment was conducted date on October 14-15, 2014 as per the assessment program below. The assessment was carried out in accordance PT TUV Rheinland Indonesia’s RSPO audit procedure as well as the RSPO Supply Chain Certification document.

An on-site assessment was conducted and the assessment team carried out field and document assessments of compliance to RSPO Supply Chain Certification System requirements.

The company proposed the correction and corrective action for all identified non conformities raised to the cer-tification body 30 days after the closing meeting. Verification of closure of non-conformances was conducted 30 days after the closing meeting of the main assessment. The certification assessment agenda is as explained below.



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Main Assessment Agenda.

Date Location/ Main sites

Main activities

Oct 14, 2014

Plant office

• Opening meeting • Verification document :

− Management commitment, SCCS procedure, incoming & buying material, outsourcing activity, outcome & selling product, registration, training, claim, processing & record keeping and material balance.

Oct 15, 2014

Plant office, internal port, & refinery facility

• Verification to field : − Incoming material and dispatch product in internal port − Material & product storage/bulking − Processing in refinery

• Preparing for closing meeting • Closing meeting and present finding



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3.0 ASSESSMENT FINDINGS

3.1 Description of Supply Chain Management System

The following is a description of the findings pertaining to the company’s supply chain management system according to the RSPO SCCS requirements, including status of compliance of the company and their out-sourced third parties to RSPO SCCS requirements:

Section 1: 5. General Chain of Custody System Requi rements for the Supply Chain

5.1. Applicability of the General Chain of Custody System Requirements for the supply chain

Findings :

Based on notary deed number 10 year 2009 that shareholders of PT Dermaga Kencana Indonesia are Kencana LDC PTE,LTD (99.8%), PT Louis Dreyfus Commodities Indonesia (0.1%) and PT Bumi Permai Sentosa (0.1%). Whereas, Kencana LDC PTE,LTD is not member RSPO so that auditee has submitted application as RSPO member to RSPO secretariat dated on October 7, 2014. During audit, number of RSPO member has not been issued so it was raised as non-conformance (NCR No.2014-01 of 06 ). Compliance status : Non-Compliance NCR No. 2014-01 of 06

Auditee or its parent company has not been member of the RSPO

2. Documented procedures

Findings :

PT Dermaga Kencana Indonesia (DKI) has a set written procedure to ensure implementation of all ele-ments of SCCS as follows : • Procedure of the RSPO product receipt and storage (SOP-BULK-RSPO-001 rev.0 dated on September

4, 2014). • Procedure of the RSPO product dispatch (SOP-BULK-RSPO-002 rev.0 dated on September 4, 2014), • Procedure of identification and traceability (SOP-MR-001 rev.2 dated on August 01, 2014) • Procedure of mass balance (SOP-MR-002 rev.2 dated on August 01, 2014) • Procedure of RSPO SCCS traceability (SOP-MR-005 rev.0 dated on September 4, 2014) • Procedure of handling of non-conformity product (SOP-MR-004 rev.0 dated on September 4, 2014), • Procedure of the purchase order (SOP-PUR-001 rev.01 dated on September 4, 2014), • Procedure of the control and monitoring outsource activities (SOP-TRD-001 rev.0 dated on September

4, 2014) • Procedure of refinery plant operational for RSPO SCCS (SG) (SOP-RF-009 rev.0 dated on September

4, 2014) • Quality procedure of RSPO SCCS (QP-014 rev.0 dated on September 4, 2014)

However, there is some routine activities that has no documented procedure such as:

• Procedure/mechanism of fractionation plant operational for RSPO SCCS (SG)

• Procedure/mechanism of check of the validity of the supply chain certificate of suppliers

• Procedure/mechanism of informing to certification body if there is a new contractor

• Procedure/mechanism of mass balance system (fill in information to mass balance tabulation, only dis-patch product from positive stock and volume of fractination according to conversion ratios stated by RSPO.

That is raised as as non-conformities as stated on (NCR No.2014-02 of 06 ).

The company has records and reports for all activities relate of SCCS implement example contract, pur-



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chasing order, delivery order, shipment document (incoming material and dispatch product), delivery note, receipt note, production plan, oil transfer form (material and product), daily report refinery, receive raw ma-terial report, dispatch product report, etc. All records and reports has not been informed supply chain model because this is main assessment so that auditee has not been implemented regarding SCCS.

The name of the person having overal responsibility for and authority for the implementation of ISO 9001:2008 (QMS), ISO 14001:2004 (EMS), ISCC, HACCP, Halal assurance and ISO 18001:2007 (OHSAS) has bees assigned, i.e. Mr. Roy Martin (employee ID : DKI-102) was appointed as Management Representative (MR) (letter decree of General Manager no.001/DKI/SK/X/2013 dated on November 7, 2013 regarding quality management representative appointment) however the job descripsion stated on the letter still not cover responsibility to control and implement RSPO SCCS, this is raised as non-conformance (NCR No.2014-03 of 06 ). During the audit time, MR has good knowledge and able to demonstrate aware-ness of the facility’s procedures and process. Compliance status : Non Complaince NCR No. 2014-02 of 06

The procedures were owned by the auditee not cover all the activities for the implementation of SCCS such as : • Procedure/mechanism of fractionation plant operational for RSPO SCCS (SG) • Procedure/mechanism of check of the validity of the supply chain certificate of suppliers • Procedure/mechanism of informing to certification body if there is a new contractor • Procedure/mechanism of mass balance system (fill in information to mass balance tabulation, only dis-

patch product from positive stock and volume of fractination according to conversion ratios stated by RSPO.

NCR No. 2014-03 of 06

Responsibility to control the implementation of RSPO SCCS requirement is not incuded on management representative appointment letter.

3. Purchasing and goods in

Findings:

The list supplier and volume of incoming material period of 2013 and 2014 year (until September) has in-formed in Table 2 . Raw material from suppliers in form of CPO. Currently, all incoming material from sup-pliers no claimed as certified.

In the purchase order procedure (SOP-PUR-001 rev.01) sub section 6.3.h has informed/explained that the purchase of RSPO SCCS material must inform categorize/status of material (certified or non-certified) and their supply chain model in all purchase document. Whereas, in RSPO SCCS traceability procedure (SOP-MR-005 rev.0) has informed/explained that sustainability officer will identify/verify receipt material as certified or non-certified material.

The auditee has mechanism to ensure validity of the Supply Chain Certification of suppliers through checked via the list of RSPO Supply Chain Certified facilities on the RSPO website www.rspo.org. Fur-thermore, auditee has procedure of handling of non-conformity product (SOP-MR-004 rev.0 dated on Sep-tember 4, 2014) but not covering handling non-conformity product/material cause certificate supplier has invalid. It was raised as non-conformance (NCR No.2014-04 of 06 ). Compliance status : Non Compliance NCR No. 2014-04 of 06

The procedure of handling of non-conformity product (SOP-MR-004 rev.0 dated on September 4, 2014) but not covering handling non-conformity product/material cause certificate supplier has invalid.

4. Outsourcing activities



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Findings :

There is outsource service in PT Demaga Kencana Indonesia i.e to transport raw material from supplier lo-cation and delivery product to buyer location and surveyor. There are six transportation company and one surveyor company, i.e :

1. PT Tritunggal Samudera Mahakam (name of vessel : TK Salindo Putra Indah II/TB Yuchai & TK TSM 1/TB Yuchai Marine 02)

2. PT Karunia Pratama Sejahtera (name of vessel : BG KAN VII/TB KAN VI)

3. PT Vinici Inti Lines (name of vessel : TB Mitra Kencana XVI/BG Sumber Kencana XV)

4. PT Oddessy Shipping Lines (name of vessel : TK Flamingo 8/TB Albatross 2)

5. PT Pelayaran Asia Marine (name of vessel : SPOB kencana 3)

6. PT Pelayaran Mahakarya Utama (name of vessel : TK Profit 928/TB Buana Victory)

7. PT Suryabuna Inspectindo

The company has provided a procedure of the control and monitoring of outsource avtivities (SOP-TRD-001). Inside procedure has informed that auditee will carry out socialization to outsource party minimal every year and issue of internal memo every 3 month, outsource company shall issue statement letter re-garding separete between certified with non-certified for SG raw material or product where knowed/witness by surveyor , and checking cleanness condtion on partision of transportasi.

All input raw materials are ownership auditee to be included in outsourced processes in form of agreement between aoth of parties (between PT DKI Iand seller and between PT DKI and transporter company) as evidence. In outsource activities, PT Dermaga Kencana Indonesia does not relinquish legal ownership of the materials during outsourced processing, and have fully control for all activity. The one of clause inside contract between auditee with outsource company that certification body have access to the outsourcing contractor or operation if an audit is deemed necessary.

PT DKI has provided list of outsorced parties and their contract for transport and surveyor and has proce-dure/mechanism If there is new outsourced company, that auditee will inform to certification body by email or letter. Compliance status : Full Compliance

5. Sales and goods out

Findings :

Mechanism of sales and goods out are described in their procedure of sales RSPO product dispatch (SOP-BULK-RSPO-002 rev.0). The procedure explain about the stages of slaes and good out mechanism such as:

• Commercial department (in head office) submit information (delivery order) to delivery unit include of product status (certified + supply chain model (SG/MB) or non-certified)

• Delivery unit issued shipment instruction to vessel agency especially for RSPO product should state information of selection supply chain model RSPO SG/MB

• Delivery administration officer will collect all delivery documents from vessel agency and surveyor

• Document controller must ensuring all required information such as name and address buyer, name and address seller, date of loading or delivery, date of issued document, information of product include supply chain model, quantity product, documentation of transportation and supply chain certificate number clearly stated on sales documents.

Information about product sold for period of year 2013 and 2014 are explained on the Table 3 above. De-livery document for delivery product via vessel such as shipping instruction, email about appointment of surveyor, results of sounding by surveyor, bill of lading. Product delivery documents has included infor-mation about the name and address of the buyer, the name and address of the seller, the loading or deliv-ery date, the date on which the document were issued, description of product, the quantity of the products delivered, any related transport documentation. Supply chain model and supply chain certification refer-ence number was not stated in delivery documents since the company has not certified yet. However the



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company has been preparing to inform selected supply chain model and supply chain certification refer-ence number.

Example of delivery document for dispatch product via vessel, such as :

• Delivery order number : 034/DKI/DO/X/2014 dated October 8, 2014

• Shipping instruction to transporter : no. 063/SI-DKI/OCT/14 dated on October 6, 2014

• Bill of Lading : no. BPN/HUE-01 dated on October 9, 2014 where has informed as follows the name and address of the buyer or notify party (Louis Dreyfus Commodities Espana, S.A, C/Santiago De Compo-stela NBR 94 floor 7-C, Madrid-Spain), the name of address of the seller (PT Dermaga Kencana Indo-nesia, Kencana Tower 8 floor, Komplek Perkantoran Bussiness Park Kebon Jeruk, Jl. Meruya Ilir No.88 RT 001/005 Kembangan-Jakarta Barat), the loading of delivery date (October 9, 2014), the date on which the document were issued (October 7, 2014), description of the product (RBDPO), quantity (2,350 MT), any related transport documentation (MT STI Fulham V.1401).

Compliance status : Full Compliance

6. Registration

Findings :

PT Dermaga Kencana Indonesia has established procedure for registration every transaction to RSPO IT System (e-trace) as required by RSPO-SCC standard and the control of IT system, implementation of this requireent will be chekced during next audit after certificate awarded. The fill in every transaction in e-trace must own username and password for log in. Auditee has not register to RSPO e-trace because auditee has not RSPO member.. This is raised non-conformity (NCR No.2014-05 of 06 ). Compliance status : Non Complaince NCR No. 2014-05 of 06

Auditee has not been caried out register to e-trace because auditee not RSPO member.

7. Training

Findings :

The auditee has the procedures of Training (SOP-HRD-003 rev.1 with effective dated on June 1, 2014). Insede the procedure has stated that the training program and training schedule (internal and eksternal training) was developed by HRD where based on the result of annual evaluation and reviewing request of training with departement and unit head relevant. The auditee has provided training schedule/matrix for year 2014-2015 consist of ISCC, FACT system, RSPO, occupation safety basics, halal assurance system, hazard and identification risk assessment, prevention and fire fighting, QMS, food safety. Inside the matrix training year 2014 has not been informed names or positions of participant as training participant, so that there is not evidence that the company has provided training to all staff involved in implementing the RSPO SCCS. This is raised as non-conformity (NCR No. 2014-06 of 06 ).

RSPO training will be conducted in September 2014 (first week) and March 2015 (third week). Auditee has carried out RSPO training dated on September 4, 2014 where these avidences are attendant list and train-ing presentation. Compliance status : Non Complaince NCR No. 2014-06 of 06

Inside the matrix training year 2014 has not been informed names or positions of participant as trainees so that it is not available evidence that auditee has provided training to all staff involved in implementing the RSPO SCCS



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8. Claims

Findings :

The company has SOP to claim certified product according RSPO communication and claims guidance. However company not claim the product directly, only require in relevant certified product, due company only produce intermediate product not finsihed good consumer product. Compliance status : Full Compliance

Section 2: Modular Requirements: Module B – Segrega tion

B.1. Processing

Findings :

Based on procedure of refinery plant operational (SOP-RF-009 rev.0) that auditee will use the same sup-ply chain model as its supplier. Production supervisor will fill in oil request form (include inform of supply chain model it) and QA manager ensuring and verify that transfer tank as temporary storage in refinery not contaminated or has cleaned, moreover QA manager determines ftorage tank for products following the selction model i.e. SG status. Compliance status: Full Complaince

B.2. Record keeping

Findings :

The company has established a mechanism for control and maintenance of the data and document used in production process (QM-DKI-001 rev.1 dated on September 4, 2014) as stated on the document control procedure, records control procedure, the retention time for all records and reports for certified material and product has been defined for at least for ten (10) years. The storage and maintainance of documents is the responsibility of the respective departments.

According to procedure owner company will clearly indicate the supply chain model used with trade names in relevant documents (in purchase order). Moreover, in procedure of RSPO SCCS traceability has ex-plain that officer must write of information with correct (raw material information : name of material, code, date of use, merk, number of tank, supplier & product information : production date, name, code, number of tank and inspection status) so that it is used to ensure trace back to only certified segregated material. Compliance status : Full Compliance

Section 3: Modular Requirements: Module C – Mass Ba lance

C.1. Processing

Findings :

Based on procedure of refinery plant operational (SOP-RF-009 rev.0) that company will use the same supply chain model as its supplier. Production supervisor will fill in oil request form (include inform of sup-



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ply chain model it).

The facility has provided the storage tank dedicated to MB product but if the storage tank will be used for SG product so that the facility shall flushing/cleaning the tank in advance. Compliance status: Full Compliance

C.2. Record keeping

Findings :

The company has established a mechanism for control and maintenance of the data and document used in production process (QM-DKI-001 rev.1 dated on September 4, 2014) as stated on the document control procedure, records control procedure, the retention time for all records and reports for certified material and product has been defined for at least for ten (10) years. The storage and maintainance of documents is the responsibility of the respective departments. According to procedure owner company will clearly in-dicate the supply chain model used with trade names in relevant documents (in purchase order). Compliance status : Full Compliance

C.3. Mass balancing system

Findings :

Auditee has not establish a mechanism to ensure that the quantity of physical RSPO mass balance materi-al inputs and output on a real time basis at RSPO SCCS traceability procedure. It has raised as non-conformities in indicator above (NCR No.2014-01 of 06 ). All volumes of palm oil that are delivered are de-ducted from the material accounting system according to actual daily conversion ratios.

Sustainability officer has been assign to monitor daily report regarding Internal material accounting system will be complies with the RSPO requirement such as can only deliver Mass Balance sales from a positive stock. The implementation of certified product accounting system will be started after RSPO certificate awarded. Compliance status: Full Compliance

3.2 Identified Non-conformances against RSPO SCCS R equirements, Corrective Actions Taken and Auditors Conclusions

SCCS Non-conformance 2014-01 of 06

Auditee or its parent company has not been member of the RSPO Correction :

• Follow-up and update of information about registration process to RSPO secretariat

• To ensure notary deed of Kencana LDC PTE LTD regarding their shareholder Corrective Action :

Ensure all activities and conditions appropriate RSPO SCCS requirement Auditor Conclusions: Closed Date of closure : November 4, 2014 Evidence of correction :



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Auditee has provided join venture agreement and letter statement relate of RSPO member. Based on join venture agreement between Kencana Agri PTE LTD with Louis Dreyfus Commodities Asia PTE LTD that the shareholders of Kencana LDC PTE LTD are Kencana Agri PTE LTD amount of 50% and Louis Dreyfus Commodities Asia PTE LTD amount of 50% where one of shareholder is RSPO member i.e Lou-is Dreyfus Commodities Asia PTE LTD with RSPO member number 2-0383-12-000-00. Based on condi-tion it that auditee has decided become part of Louis Dreyfus Commodities Asia PTE LTD RSPO mem-beship. It decision has stated in the statement letter no.006/DKI/XI/2014 dated on December 01, 2014.

SCCS Non-conformance 2014-02 of 06

The procedures were owned by the auditee not cover all the activities for the implementation of SCCS such as : • Procedure/mechanism of fractionation plant operational for RSPO SCCS (SG) • Procedure/mechanism of check of the validity of the supply chain certificate of suppliers • Procedure/mechanism of informing to certification body if there is a new contractor • Procedure/mechanism of mass balance system (fill in information to mass balance tabulation, only

dispatch product from positive stock and volume of fractination according to conversion ratios stated by RSPO

Correction :

• Create of new procedure i.e Fractination Plant Operational Procedure RSPO SCCS (SG)

• Revision procedure of product receipt with adding mechanism of check of the validity of the supply chain certificate of suppliers

• Revision procedure of the control and monitoring outsource activities with adding with mechanism of in-forming to certification body if there is a new contractor

• Create of new procedure i.e mechanism of mass balance system Corrective Action :

Ensuring each activity which relate of RSPO SCCS implementation should has procedure/mechanism and all procedure must be approved Auditor Conclusions: Closed Date of closure : November 4, 2014 Evidence of correction :

Auditee has provided a new procedure and revision procedure i.e : • Fractionation plant operational procedure (SOP-RF-010 rev.0), it has explained about mechanism of

processing in pretreatment & bleaching section, deodorizing section, fractionation plant 1 where in-clude of converting non-RSPO to RSPO product in each sections.

• Product receipt procedure (SOP-BULK-RSPO-001 rev.1), it has explained that auditee will check of the validity of the supply chain certificate of supplier every 3 (three) months through RSPO website.

• Control and monitoring outsource activities procedure (SOP-TRD-001 rev.0), it has explained that au-ditee will be inform to CB if there are new sub-contractor by email or letter.

• Mass balance procedure (SOP-MR-005 rev.0), it has explained that auditee will be fill in incoming ma-terial and outgoing product data to e-trace and mass balance table, will be delivery product if positive stock and compliance with conversion ratios which has stated by RSPO for volume of fractionation.

SCCS Non-conformance 2014-03 of 06 Responsibility to control the implementation of RSPO SCCS requirement is not incuded on manage-ment representative appointment letter Correction :

Revise management representative appointment letter



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Corrective Action :


Auditee has provided management representative appointment letter no.138/HRGA-DKI/BPP/X/2014 dated on October 14, 2014 that has been including the RSPO SCCS as one of Management Representa-tive responsibilities. Whereas, details of list responsibilities mentioned in Job Description Document (JD-MR-001).

. SCCS Non-conformance 2014-04 of 06 Mechanism for non-conformity product handling procedure (SOP-MR-004 rev.0 dated on September 4, 2014) was available but not covering handling of non-conformity product/material following validity status of supplier certificate. Correction :

Revision procedure of handling of non-conformity product which has included all results of identification about any matters that may occur so the product be non-conformity. Corrective Action :


The company provides revision of handling of non-conformity (SOP-QA-006 rev.1) procedure. There is explaination that if contamination material more than 5%, will be classified become non certified same condition If its known that supplier’s certificate status has been invalid.

SCCS Non-conformance 2014-05 of 06 Auditee has not been cariied out register to e-trace because auditee not RSPO member Correction :

• Follow-up and update of information about registration process to RSPO secretariat

• To ensure notary deed of Kencana LDC PTE LTD regarding their shareholder

• Registration to e-trace if RSPO member number available Corrective Action :


Auditee has provided evidences that auditee has decided to have as its mother to Louis Dreyfus Com-



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modities Asia PTE LTD or its parent company for RSPO member is Louis Dreyfus Commodities Asia PTE LTD. It decision has stated in the statement letter no.006/DKI/XI/2014 dated on December 01, 2014. Moreover, auditee has registered to the e-trace and has obtained a UTZ number.

SCCS Non-conformance 2014-06 of 06 Inside the matrix training year 2014 has not been informed names or positions of participant as trainees so that it is not available evidence that auditee has provided training to all staff involved in implementing the RSPO SCCS Correction :

Revision training schedule/matrix with adding the coloumn of name and topic/theme Corrective Action :

Auditee state goals and identify of gap competency each personils Auditor Conclusions: Closed Date of closure : November 4, 2014 Evidence of correction :

Auditee has provided revision of training schedule/matrix where has included information about position of participant as trainees, type of training, location/place of training and trainer so that there are avidence that auditee has provided training to all staff involved in implementing the RSPO SCCS.

.

3.3 Conclusion and Recommendation for RSPO Supply C hain Certification

The audit team has confirmed through the audit process that PT Dermaga Kencana Indonesia has established and maintains an effective system to ensure compliance with the RSPO Supply Chain Certification require-ments (dated November 2011).

PT TUV Rheinland Indonesia recommends that PT Dermaga Kencana Indonesia be approved for certification of compliance to the RSPO Supply Chain Certification requirements.



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4.0 CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF INT ERNAL RESPONSIBILITY

4.1 Date of Next Surveillance Visit

The next surveillance visit is planned for July 2015

4.2 Acknowledgements of Internal Responsibility and Formal Sign-Off by Client

It is acknowledged that the assessment visit was carried out as described in this report and we accept the as-sessment findings and report content.

Signed on behalf of PT Dermaga Kencana Indonesia

…………………………………………. Roy Martin Silalahi Management Representative Date : November 8, 2014

Signed on behalf of PT TUV Rheinland Indonesia

…………………………………………. Hendra Fachrurozy Lead Auditor Date : November 8, 2014



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APPENDICES

Appendix 1: Details of Supply Chain Certification C ertificate



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Appendix 2: List of Abbreviations CPO Crude Palm Oil DKI PT Dermaga Kencana Indonesia MB Mass Balance PFAD Palm Fatty Acid Distillate QP Quality Procedure RBDOL Refined Bleached Deodorized Olein RBDPO Refined Bleached Deodorized Palm Oil RBDStrn Refined Bleached Deodorized Stearin RSPO Rountable Sustainable Palm Oil RPO Refined Palm Oil SCCS Supply Chain Certification System SOP Standard Operating Procedure SG Segregation

Appendix 3: Observations and Opportunities for Impr ovement

No. Observation s / Opportunities for Improvement 1 -



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Appendix 4 : Supply Chain Certification Audit Closi ng Meeting Summary



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Appendix 5 : List of supplier and buyer

Name of Supplier Address Product Certificate Certificate

No. Certificate Validation

PT Agro Inti Kencana Mas Desa Riwang, Kecamatan Batu Engau, Kabupaten Paser, Provinsi Kalimantan Timur

CPO - - -

PT Sawit Kaltim Lestari Desa Sabintulung, Kecamatan Muara Kaman, Kabupaten Ku-tai Kartanegara, Provinsi Kali-mantan Timur

CPO - - -

PT Swadaya Andika Desa Manunggul Lama, Keca-matan Si Durian, Kabupaten Kotabaru, Provinsi Kalimantan Selatan

CPO - - -

PT Laguna Mandiri Kecamatan Pamukan Utara, Kabupaten Kotabaru, Provinsi Kalimantan Selatan

CPO - - -


Kecamatan Pamukan Utara, Kabupaten Kotabaru, Provinsi Kalimantan Selatan

CPO RSPO P&C MUTU-

RSPO/014 Until 16-03-

2017

PT Dharma Satya Nusanta-ra (PKS 2)

Desa Labanan Jaya, Kecama-tan Teluk Bayur, Kabupaten Berau, Provinsi Kalimantan ti-mur

CPO RSPO P&C 18502792 001 Until 24-03-

2019

PT Karangjuang Hijau Les-tari

Kecamatan Sebuku, Kabupat-en Nunukan, Provinsi Kaliman-tan Timur

CPO - - -

PT Jaya Mandiri Sukses Desa perian, Kecamatan Muara Muntai, Kabupaten Kutai Kar-tanegara, Provinsi Kalimantan Timur

CPO - - -

PT Rea Kaltim Plantations Jl Provinsi RT 15, Desa Sungai Mariam, Kecamatan Anggana, Kabupaten Kutai Kartanegara, Provinsi Kalimantan Timur

CPO - - -

PT Alamraya Kencana Mas Desa Sengayam, Kecamatan Pamukan, Kabupaten Kotaba-ru, Provinsi Kalimantan Selatan

CPO - - -


Desa Sukadamai, Kecamatan Mentewe, Kabupaten Tanah Bumbu, Provinsi Kalimantan Selatan

CPO - - -

Buyer Address Product Certificate Certificate

No.

Certifi-cate Vali-

dation Louis Dreyfus Commodities Asia

12 Marine Bay Boulevard Singapore 018962, Singapore

CPO, PFAD, RBDOL, RBDPO, RBDStrn

- - -


12 Marina Boulevard #33-03 Marina Bay Financial Centre, Singapore 018982

CPO, PFAD, RBDOL, RBDPO, RBDStrn

- - -

Sawindo Agri PTE LTD 36 Armenian Street #03-02, Singapore 179934

CPO - - -

Documents

Roundtable on Sustainable Palm Oil - tuv.com · PDF fileTimber Legality of Verfication, auditor for SMK3, auditor for QMS and EMS and auditor for RSPO & ISPO at TUV Rheinland Indonesia