RSPO CERTIFICATION ASSESSMENT PUBLIC SUMMARY … · FRSPO-TNI-05-R2-Audit Report-SOCFINDO-NL -CA_Rev1 Page 7 ... 2015 AS/NZS 14001:2004 by SAI Global CEM 20621 February 11, 2013 February

PT. TÜV NORD Indonesia

Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 1 of 51

FRSPO-TNI-05-R2-Audit Report-SOCFINDO-NL -CA_Rev1 Page 1

RSPO CERTIFICATION ASSESSMENT

PUBLIC SUMMARY REPORT


System Certification Management

Has assessed

PT. SOCFIN INDONESIA

<Negeri Lama Mill and its supply bases>

for Compliance to RSPO Principles and Criteria

for Sustainable Palm Oil Production

Date of assessment:

April 08 – 12, 2013

Report Number: P&C-D-131

Head Office


Perkantoran Hijau Arkadia Tower F,

7th Fl Suite 706

Jl. Let. Jend. TB Simatupang Kav. 88

Jakarta 12520 – Indonesia

Tel : +6221 7883 7338

Fax : +6221 7883 7336

Laboratory Division

Jl. Jababeka XVII E Blok U No. 27B

Kawasan Industri Jababeka I Cikarang Bekasi 17530 – Indonesia

Tel : +6221 898 403 18 – 19

Fax : +6221 898 403 20

Branch Office

Intiland Tower 11th Fl, Suite 1E

Jl. Panglima Sudirman 101-103

Surabaya 60271 - Indonesia

Tel : +6231 53 444 54

Fax : +6231 53 4 44 82

President Director:

Mr. Robert Napitupulu

Email: [email protected]

Website: www.tuv-nord.com or www.tuev-nord.de

mailto:[email protected]

http://www.tuv-nord.com/

http://www.tuev-nord.de/


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 2 of 51


List of Contents

1 Scope of The Certification Assessment ............................................................................... 4

1.1 Type of Assessment (Mill, Estate and Mill, etc.) ................................................................................... 4

1.2 Location, mill, and or hectare statement ............................................................................................... 4

1.3 Description of Supply Base (Fruit Sources) .......................................................................................... 5

1.3.1 Description of Mill ................................................................................................................ 5

1.3.2 Description of Plantation (Fruit Sources) ............................................................................ 6

1.4 Date of Planting and Cycle .................................................................................................................... 6

1.4.1 Year of Planting for Negeri Lama Estate ............................................................................ 6

1.4.2 Time-bound Plan (for other management units and justifications). .................................. 10

1.5 Organizational Information/Contact Person ........................................................................................ 10

1.6 Tonnages Certified .............................................................................................................................. 11

2 Assessment Process ......................................................................................................... 11

2.1 Assessment Methodology (Program, Site Visits) ................................................................................ 11

2.1.1 General Overview ............................................................................................................. 11

2.1.2 Assessment Agenda ......................................................................................................... 11

2.2 Date of Next Surveillance Visit ............................................................................................................ 12

2.3 Lead Assessor/Assessment Team ...................................................................................................... 12

2.3.1 Lead Assessor: Wieke Savitri ........................................................................................... 12

2.3.2 Assessment Team Members ............................................................................................ 13

2.4 Certification Body ................................................................................................................................ 14

2.5 Outline of How Stakeholder Consultation Was Managed ................................................................... 15

2.5.1 Summary ........................................................................................................................... 15

2.5.2 List of Stakeholders and Contacted Stakeholders ............................................................ 15

3 Assessment Findings ......................................................................................................... 17

3.1 Summary of the Findings by Criteria ................................................................................................... 17

3.2 Identified Non Conformances and Noteworthy positive components. ................................................ 32

3.2.1 Detail of Non Conformity ................................................................................................... 32

3.2.2 Resume of Audit Results .................................................................................................. 32

3.3 Audit Recommendation ....................................................................................................................... 33

3.4 Issues Raised by Stakeholders ........................................................................................................... 34

4 Certified Organization’s Acknowledgement of Internal Responsibility ............................... 36

4.1 Formal Sign-off of Assessment Findings ............................................................................................ 36


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 3 of 51


List of Figures

Figure 1-1 Geographical Map of Negeri Lama and its supply bases against Sumatra Island .................................. 8

Figure 1-2 Block Map of Negeri Lama Estate ............................................................................................................ 9

List of Tables

Table 1-1 Description of supply base (fruit sources) ................................................................................................. 6

Table 2-2 List of Stakeholder surrounding Negeri Lama Unit .................................................................................. 15

Table 2-3 List of contacted Stakeholder surrounding Negeri Lama Unit ................................................................ 16

Table 3-1 Summary of Findings by Criteria ............................................................................................................. 17

Table 3-2 Resume of Audit Results ......................................................................................................................... 32

List of Appendices

Appendix 1 List of Abbreviations .............................................................................................................................. 37

Appendix 2 Draft of Certificate ................................................................................................................................. 38

Appendix 3 Updated Time Bound Plan .................................................................................................................... 40

Appendix 4 Summary of the findings for compliance with the RSPO Supply Chain Module E (Mass Balance) ver. November 2011 ........................................................................................................................................................ 41

Appendix 5 Audit Plan .............................................................................................................................................. 46

Appendix 6 Summary of Non-Conformity Report (NCR) ......................................................................................... 48


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 4 of 51


1 Scope of The Certification Assessment

1.1 Type of Assessment (Mill, Estate and Mill, etc.)

TUV NORD Indonesia conducted an certification assessment to one of Palm oil mill and its supplied base

owned by PT. Socfin Indonesia, hereinafter is called by Socfindo, in Negeri Lama unit, hereinafter is

abbreviated as NLM. The assessment was done as per National Interpretation of RSPO Principle and

Criteria for Sustainable Palm Oil Production - Republic of Indonesia (RSPO Indonesian National

International <INA-NI. ver. May 2008 Standard), as well as RSPO Supply Chain Standard for Mills (module

E: Mass Balance) ver. November 2011. Requirements. The recommendation from this assessment is that

PT. Socfin Indonesia, Negeri Lama unit be approved as a producer of RSPO Certified Sustainable Palm.

The scope of this certification assessment is CPO and PK production of Negeri Lama Mill (NLM) and its

supply bases, i.e. Negeri Lama Estate (NLE).

1.2 Location, mill, and or hectare statement

Negeri Lama Mill (hereinafter is abbreviated as NLM) is supplied by one (1) estate, i.e. Negeri Lama Estate

(NLE), which is located approximately 350 Kms from Medan (capital of North Sumatera Province), and

around 62 Kms from Rantau Prapat (capital of Labuhan Batu Regency). The detail of coordinate’s location

can be seen as below:

Name of Mill and Plantation

Location

Coordinates

Longitude (North)

Latitude (East)

Negeri Lama Mill Bilah Hilir District, Labuhan Batu Regency, North Sumatera Province, Indonesia

02°19’02.10’’ 100°04’12.61’’

Negeri Lama Estate

Bilah Hilir District, Labuhan Batu Regency, North Sumatera Province, Indonesia

02°18’36.85’’ - 02°21’14.36’’

100°02’00.06’’ - 100°05’17.84’’

PT. Socfin Indonesia by deed of establishment on December 7, 1930, based on notarial William Leo

Number 45, and the legality of the name of PT. Socfin Medan S.A. (Societe Financiere des Caoutchoucs

Medan Societe Anonyme) officially used. Subsequent developments PT. Socfin Medan SA change its

name to PT. Socfin Indonesia (SOCFINDO), established by notarial act Chairil Bahri in Jakarta on June

21, 1968 Number 23 and Number 64 Deed of Amendment dated May 12, 1968. Authorized by the Minister

of Justice on 3 September 1969 and published in the supplement national gazette RI No.68/69 dated

October 31, 1969. PT. Socfin Indonesia’s HQ is. based at Jl. K.L. Yos Sudarso 106, PO BOX 1254, Medan


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 5 of 51


- 20115, an agribusiness company engaged in oil palm and rubber, as well as yielding seed production. PT.

Socfin Indonesia is one of the PMA (Foreign Investment) with the status joint venture, which operates in the

province of North Sumatra and Aceh. The summary of legal permit and hectarage statement shown as

below:

HGU Decree Number of HGU

Location Area of HGU

(Ha)

Validity of HGU

SK/64/HGU/DA/1978 1 Labuhan Batu Regency, North Sumatera Province

2,164.80 31.12. 2044

Estates

Area Summary

Total Concession

/HGU (Ha)

Planted with Oil Palm

Others (Facility, building,

nursery, road,) (Ha)

Conservation HCV area/

(Ha)

NLE 2,164.80

2,140.00

24.80

25.23*

Note : . HCV area 25.23 Ha is overlapping area with planted area (2,140.00 Ha) + others ( 24.80 Ha) = 2,164.80

Ha

Source : Hectare statement per January 2013:

1.3 Description of Supply Base (Fruit Sources)

1.3.1 Description of Mill

Negeri Lama Mill Capacity

(ton/h)

Annual output from own estate

CPO

(ton)

OER

(%)

PK

(ton)

KER

(5)

12 10,357 23.71 1,860 4.26

Source: based on actual data in year 2012 (Jan-Dec)


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 6 of 51


1.3.2 Description of Plantation (Fruit Sources)

Up until now, no FFB purchased from third party. Fresh Fruit Bunch (FFB) Negeri Lama mill was solely

supplied by Negeri Lama estate.

Table 1-1 Description of supply base (fruit sources)

Name of Plantation FFB Production

(ton/year) %

Negeri Lama Estate (NLE) 43,682 100.00

FFB from smallholder/ third party 0 0

Total FFB supplied to mill 43,682 100.00

Source : based on actual production in year 2012 (Jan-Dec)

1.4 Date of Planting and Cycle

1.4.1 Year of Planting for Negeri Lama Estate

Age of palms Year of planting

Planted area

(Ha)

Percentage of planted area

(%)

Mature

>25 years 1985 -1986 152.0 7.10

11-25 years 1988 -2000 1,320.0 61.68

3 -10 years 2004 -2010 423.0 19.77

Total mature area 1,895.0 88.55

Immature 0-2 years 2011-2012 166.0 77.57

Replanting program 2013 79.0 3.69

Total Immature and replanting 245.0 11.45

Total planted area 2,140.0 100.00

Source : Hectare statement as per January 2013


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 7 of 51


In general, oil palm is replanted after 25 years, but possibly shorter / longer depending on the economics

and status of the crop, such as yield, productivity, density of palm etc. The summary replanting program in

Negeri Lama Estate is given as below :

Estate Year of planting

Division/ block

Year of Replanting Program

Age of palm Area to be Replanted

(Ha)

HCV program

(Ha)

NLE

1986 I/ 023 2014 28 22.27 0

1991 I/ 015 2014 23 43.36 0

1988 II/ 042 2015 27 32.00 0

1986 II/ 029 2015 29 45.69 0

1986 I/ 019 2016 30 35.23 1.06

1986 I/ 025 2016 30 11.81 2.06

1990 II/ 032 2017 27 55.00 0

1985 II/ 034 2018 33 32.00 0

Total area to be replanted

277.36 3.12

280.48


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 8 of 51


Figure 1-1 Geographical Map of Negeri Lama and its supply bases against Sumatra Island

Figure 1-2 Geographical Map of Negeri Lama and its supply bases against Sumatra Island


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 9 of 51


Figure 1-3 Block Map of Negeri Lama Estate


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 10 of 51


1.4.2 Time-bound Plan (for other management units and justifications).

The company will use the experience obtained in the main assessment to ensure that the other

management units conform to the RSPO principles and criteria Progress of this plan of time-bound

certification has been verified. There were some changes made from the previous time bound plan due to

technical condition in each management unit. The updated time bound plan is can be seen in Appendix 3

Updated Time Bound Plan..

Other Certifications Held (ISO, etc.)

NLM has implemented Environmental, Health, and Safety Management System and have been certified

for those standards.

Certification name Certificate nr.

Date of Last Certification

Valid until

ISO 9001:2008 by SAI Global QEC24386 August 20, 2012 August 19, 2015

AS/NZS 14001:2004 by SAI Global CEM 20621 February 11, 2013 February 10, 2016

OHSAS 18001:2007 by SAI Global OHS21056 January 30, 2013 January 29, 2016

1.5 Organizational Information/Contact Person

Organizational Information

Principle Contact Person Mr. Hasan Bisri Kasyuri

Position Management Representative/ Head of Sustainability Department

Business Address Jl. KL Yos Sudarso No.106, Medan 20115, Indonesia

Group Name (If applicable)

Socfindo Group (PT. Socfin Indonesia and Socfinco SA)

Office Telephone Number +62-61-6616066

Mobile Number -

Fax +62-21 579 37504

E-mail address [email protected]; [email protected]

Web site www.socfindo.co.id

mailto:[email protected]

http://www.socfindo.co.id/


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 11 of 51


1.6 Tonnages Certified

Tonnages Certified

Name of Mill Negeri Lama

Location Bilah Hilir District, Labuhan Batu Regency, North Sumatera Province, Indonesia

CPO Production (ton) 10,357

PK Production (ton) 1,860

2 Assessment Process

2.1 Assessment Methodology (Program, Site Visits)

2.1.1 General Overview

The assessment was carried out by referring to TÜV NORD Indonesia Certification Procedure, PRSPO-

TNI-01 Rev. 1, dated 01.04.2013. This procedure described the assessment processes, which consist of

several stages, such as contract review and offer preparation, pre-assessment audit (if necessary),

certification audit, certificate issuance, and surveillance audit.

Certification audit consists of 2 (two) stages, i.e. stage I and stage II. Stage I was done on December 03 to

12, 2012, covering only documentation review without field assessment. Documentation review includes

Management System Documentation and its records, company’s policy related to RSPO, HCV Assessment

Report, legal documents, Environmental and Social Impact Assessment Report, RSPO manual,

procedures, and working instructions.

Based on findings and recommendation issued in stage I of certification audit for RSPO P&C standard,

Socfin prepared correction and corrective actions supported by its evidences. After the auditor verified the

evidences, a notification for main certification audit (stage II) was sent to RSPO Executive Board.

Certification audit was conducted on April 08 until May 2, 2013 for four mills own by Socfindo, where for

Negeri Lama Mill and its supply base were conducted on April 08 to April 12, 2013. The auditor team

carried out field and office assessments of compliance for all the RSPO principles and criteria. Common

systems were identified and specific evidence was recorded. Interview with managers and workers were

conducted for estates and factory.

2.1.2 Assessment Agenda

Main assessment or certification audit was performed on April 08 until May 2, 2013 for four mills own by

Socfin, where for Negeri Lama Mill and its supply base were conducted on April 08 to April 12, 2013.


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 12 of 51


Ms. Wieke Savitri was the lead auditor for Socfindo, together with Ms.Karlina Bone (KB), and also Mr.

Yuda Budiutama (YB) as auditor to conduct the audit for Sei Liput. The team was assisted by Mr. Ujang

Sehabuddin (US) as social expert and Dr. Supijatno as agronomy expert. The audit schedule is attached

in the appendix

2.2 Date of Next Surveillance Visit

According to plan, the surveillance audit is to be scheduled nine (9) months after the issuance of

certificate. Surveillance audit will be conducted once a year within the 5-year certificate validity period.

2.3 Lead Assessor/Assessment Team

2.3.1 Lead Assessor: Wieke Savitri

Qualification Compliance

Educational Background

Has a bachelor degree from Agriculture Faculty, Bogor Agricultural University Yes

Working Experience

1995-1997: PUPUK Foundation (Perkumpulan Untuk Peningkatan Usaha Kecil,

A Non Government Organization for promoting small scale enterprises supported and financed by GTZ-Germany and Swiss Contact, as Management Consultant. Responsibilities : To arrange projects regarding business management, human resources, marketing and IT to promote small scale enterprises.

1997-2004: PT. Varia Industri Tirta and PT.Tirta Investama.

Bottled water companies under DaNo.ne management as Quality Control Manager/ Quality Assurance Manager/ Internal Auditor and Trainer. Responsibilities : deliver training and implementing management systems for ISO 9001, ISO 14001, HACCP, GMP, ISO 22000, 5S, QCC, SPC

1997-2004: Danone-Aqua Foundation as Associate Representative in factory. Responsibilities: to develop community development programs for people living around factory.

2004- 2005: PT. Tribina Mediartha Sarana. A consulting company, as a Consultant and

Trainer. Responsibilities : deliver training and consultancy for companies and organizations for ISO 9001, ISO 14001, SMK3, HACCP, GMP, ISO 22000, 5S, QCC, SPC

2005-2006: PT. Global Certification Indonesia. Certification Body based in UK as

Operations Manager. Responsibilities: Running daily operation and reporting to Head Office in UK.

2006-Now: PT. TUV NO.RD Indonesia as ISO 9001/RSPO/ISPO Lead Auditor. Branch Manager Surabaya Office. Responsibilities : Running daily operation in Branch Office, conduct audit and reporting.

Yes

RSPO Training

Certified RSPO Lead Auditor Training by ProForest-Wild Asia on July 7-11, 2008, Indonesia. Yes

Other Training

Internal Auditor Training of Environmental Management System (ISO 14001:1996) EARA -RIET – REDECON, 2000, Indonesia.

Yes


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 13 of 51


Internal training SMK3, Indonesia

Workshop for Community-based Environmental Educators by the United Nations of Environmental Program, 2002, Thailand

Process based audit ISO 9001;2000 by PSB Certification, 2002, Indonesia

ISO 22000 by SAI Global, 2005, Indonesia

ISO 9001:2000 Advanced Lead Auditor Training Course, by IQCS International Certification Services, 2006, Indonesia

ISO 9001:2008 upgrading training, by TUV NORD Indonesia

ISPO training in 2011

Experience related to RSPO

RSPO to date (Aug 2010 -May 2013) More than 25 x pre-assessments and main assessment of RSPO P&C in Indonesia, (RSPO P&C)

1 x NPP assessments in Indonesia

3 x RSPO SCC assessments in Indonesia

Yes

2.3.2 Assessment Team Members

RSPO REQUIREMENT ASSESSOR QUALIFICATIONS COMPLIANCE

Fluent in main local languages and English.

Yuda Budiutama (YB)

Karlina Bone (KB)

Ujang Sehabudin (US)

Supijatno (SPJ)

Indonesia citizen, fluent in English Yes

Field working experience in the palm oil sector, or a demonstrable equivalent.

SPJ He holds a doctorate in Plant Physiology from Bogor Agricultural University (IPB), and has a strong background and experience in agronomy aspects.

Yes

Good agricultural practices (GAP), integrated pest management (IPM), pesticide and fertilizer use.

SPJ

More than in 18 years extensive experiences in research and consultancy, such as in Development monitoring of palm oil plantation for PT. Pusaka Megah Nusantara, Riau (1995); Pre study of palm oil plantation for PT. Palmina, Banjar Regency, South Borneo (2009); Pre study of palm oil plantation development for PT. Dendymarker Indah Lestari, Rumpit District, Musi Rawas Regency, South Sumatra in corporation with PT. Primakelola and PT. Helios (2011); Monitoring of smallholders of PT. Pohon Emas Lestari, Nunukan District, Nunukan Regency, East Borneo Province (2012), and many more.

Yes

Health and Safety assessment on the farm and in processing facilities. (For example OHSAS 18001 or occupational. Health and safety assurance system).

KB

Observed audit in OHSAS Audit as a trainee for Indonesian contractors, such as PT. Inti Indah, PT. Virajaya Riauputra, etc. Other than that, observed as a trainee as well RSPO P&C for PT. Inti Indo Sawit - Tungkal Ulu (CA), PT. London Sumatra (ASA III), UPOIC (CA stage 1 and stage 2), PT. Sahabat Mewah Makmur (ASA I), etc., often observing for OHSAS audit as well as social aspect, and legal.

Yes


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 14 of 51


Workers welfare issues and social assessment experience. (For example with SA8000 or related social or ethical accountability codes).

US

Having experience in CSR project as assessor for oil palm company over the past 3 years. For example: Corporate Social Responsibility (CSR) Program of PT. Sinar Mas Group Tbk in Bengkalis, Pelalawan dan Ogan Komering Ilir District. Cooperative of Agronomy Departement IPB and PT. Sinar Mas Tbk.; Study of CSR Program in PT. Antam Tbk. UBPE Pongkor, Bogor.

Yes

Environmental and ecological assessmenting. (For example experience with organic agriculture, ISO 14001 or environmental management systems).

YB

Project Coordinator on Environmental Law Enforcement Training (ELET) in Surabaya, Mataram, Makassar, Kendari, Kupang, Ternate, Timika, Papua from by Hassal & Associates International (HAI) under Indonesia – Australia Specialised Training Project (IASTP) Phase III (2006 – 2007),

Project Coordinator on The Impact Assessment of the Disharmony among the Laws and Regulations Related to Land under Land Management and Policy Development Project (LMPDP) – Bappenas funded by World Bank (2009).

Project Coordinator on Strategic Environmental Assessment (SEA) Applied in National Development Planning joint project between BAPPENAS and The Royal Danish Embassy by means of DANIDA (Danish International Development Agency) 2009 – 2010.

Quality controller and Evironmental Specialist in PT. Sucofindo (Persero), 2005 – 2010

Environmental Impact Assessment (EIA) project team member in number of activity plan such as office building, factory and manufacturing industry, electrical, and others (2007 – 2010)

Yes

Economic issues US

He is a team member of Preparation and Development Palm Estate Project in Tanah Bumbu District, South Kalimantan Province. Joint between IPB and Tanah Bumbu Governance. Involved in several feasibility studies, such as feasibility Study of Oil Palm Estate Development in Tanah Bumbu District, South Kalimantan, etc.

Yes

2.4 Certification Body

PT. TÜV NORD Indonesia is a subsidiary of the German TÜV NORD Group. Our company is a market

leader in Indonesia for inspection, testing and certification services. Through more than 800 clients, we

offer not just a high added value service but also the trust and confidence embedded in our issued

certificates/reports. We satisfy not only our direct customers but also other stakeholders, like regulators and

interested society including NGOs, through our competent auditors, inspectors and analysts.

PT. TÜV NORD Indonesia, under its HQ in Germany, is a member of International Accreditation Forum

(IAF) and accredited by DAR–German and by the Indonesian Accreditation Committee (KAN). Services

provided by the Strategic Business Unit Systems Certifications are: Food Safety Management System ISO

22000, Information Security Management System ISO 27001, Social Accountability SA 8000, Food

Hygiene HACCP, Medical Device Directive MDD, ISO 13485, Occupational Health and Safety OHSAS


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 15 of 51


18001, Product Certification: GS-Mark, CE-Mark, SNI Mark, Inspection for ISPS Code, Clean Development

Mechanism (CDM) Validation & Verification, British Retail Consortium, ISCC.

2.5 Outline of How Stakeholder Consultation Was Managed

2.5.1 Summary

As part of document review, auditor team has reviewed list of local stakeholders provided by Socfindo.

Based on the updated list of stakeholder, unlike for Aek Loba Mill and its supply base, for Negeri Lama mill,

auditor team did not arrange for stakeholder meeting. The interview of external and internal stakeholder

was done during the assessment through direct interview, whether they were directly visited while they

were working in the field or an inofficial meeting was arranged (See Error! Reference source not found.).

In general, they were invited to make any comments on several issues related to them, such as:

Information about RSPO to the public and stakeholders

Company approach to community development.

Environmental protection.

Biodiversity conservation.

Opportunities for employment.

Provision of housing, sanitation, amenities and educational support.

Participation in decision making.

If there any complaints and grievance, land conflict

Any other issue, both positive and negative that relevance to the assessment.

2.5.2 List of Stakeholders and Contacted Stakeholders

Table 2-1 List of Stakeholder surrounding Negeri Lama Unit

No. Institution

A Internal

1 Principal Director

2 General Manager

3 Division Head/Kepala Bahagian

4 Group Manager 5 Manager Unit and Staff Negeri Lama

6 SPSI Negeri Lama (Labor Union)

7 Gender Committee Negeri Lama

B Eksternal

1 Disnaker Labuhan Batu Regency ( Labor Dept)

2 Bapedalda Labuhan Batu Regency (Environmental Agency)


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 16 of 51


3 Dinas Pertanian dan Perkebunan Labuhan Batu Regency (Agriculture Dept.)

4 Dinas Pertambangan dan Energi Labuhan Batu Regency (Mining & Energy Dept.)

5 Dinas Pertanahan/BPN Labuhan Batu Regency (Agraria/ Land Dept)

6 Camat Bilah Hilir Dictrict

7 Danramil (Military)

8 Polsek Bilah Hilir (Police)

9 Masyarakat Desa Perkebunan Negeri Lama (Local Community )

10 Masyarakat Desa Negeri Lama (Local Community)

Table 2-2 List of contacted Stakeholder surrounding Negeri Lama Unit

No Contacted Internal/External Stakeholders

1. Secretary of Negeri Lama Village

2. Kaur Umum of Negeri Lama Village

3. Community leader of Negeri Lama Village

4. Head Master of Play Group and Kindergarten in Negeri Lama Village

5. Labor Union SPSI Negeri Lama Unit

6. Gender Committee Negeri Lama Unit

7. Women spraying worker

8. Harvester


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 17 of 51


3 Assessment Findings

3.1 Summary of the Findings by Criteria

Objective evidences were obtained separately for each of the indicators for mills and estates in the

certification assessment. The results for each indicator from the different operational areas were

aggregated to assess the overall conformances of the company’s operations to each criterion. A statement

is made for each indicator on the finding. A detailed description of the Non-Conformities is given in Section

3.2.1

During stage II of certification audit, 4 (four) major non-conformities and 5 (five) minor non-conformities

have been raised against RSPO Principals and criteria, whilst none for RSPO Supply Chain Standard –

module E (mass balance).

Negeri Lama Unit had prepared Corrective Action Plan focusing on major non-conformities within two

months after the audit, the latest CAR was sent on June 13, 2013. While for the minor findings Socfin

proposed to prepare the corrective action within one year until the next surveillance audit which is

acceptable according to RSPO Certification System ver. June 26, 2007 clause 4.2.5 page #14. For the

major findings had been accepted and verified by PT. TÜV NORD Indonesia. Thus, Auditor Team

recommends Negeri Lama Unit to get the certification of RSPO Principal and Criteria.

The following is a summary of the findings for compliance with the RSPO Principles & Criteria for

Indonesian National International <INA-NI ver. May 2008 Standard). While a summary of the findings for

compliance with the RSPO Supply Chain Module E (Mass Balance) ver. November 2011 is attached in

Appendix 4.

Table 3-1 Summary of Findings by Criteria

FINDINGS/COMMENTS

Criterion 1.1 (C.1.1)

Provide adequate information to other stakeholders on environmental social and legal issues relevant with RSPO Criteria, in appropriate languages and forms to allow for effective participation in decision-making

Socfindo has a Procedure to respond stakeholder’s request of information or aspiration or consultation, so called Social Communication Procedure no. SOC/PSM/9.01, Rev.01 dated April 1, 2011 which is supported by a “Request Informartion Or Consultation Form” (SOC/Form/9.01-01).

Estate Manager has been appointed by the top management as a person who responsible to maintain the relationship between company and its stakeholders, while administrator staff is appointed to documenting all requests and their responses.


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 18 of 51


Several information requests had been randomly checked and verified, and found to be complying with the standard and the social communication procedure. The records mentioned above must be maintained for a period of time determined by the company, taking into account their relative importance. For Socfindo, they keep both records for five (5) years period, as per Procedure of Record’s Control (SOC-PSM/4.03/ Rev.02/ 1 January 2011) and Master List of Records (SOC/Form/4.03-01).

Status: Comply


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

This criterion is covered with a “Social Communication Procedure” (SOC/PSM/9.01)/ Rev.01/April 1, 2011). “Land Title” validity information is available at the entrance.

Any open information are available by request with a clear objective explanation, such as for legal document (Land title, Plantation Permits, etc.), environmental documents (EIA report and its semester monitoring reports), Social Documents (SIA report and its annual monitoring report), any sensitive documents such as financial reports or others must be approved by the top of management.


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

“Identification and Evaluation of Law and Regulation related to Environmental and OHS Procedure Prosedur” (SOC/ PSM/4.05/Rev.04/ January 1, 2011), supported by “Identification and Evaluation Form of OHS Law and Regulation” (SOC/Form/4.06-01), “Identification and Evaluation Form of Environmental Law and Regulation” (SOC/Form/4.05-01). Regulation List is made by Head Quarter and updated regularly within 6 month interval. For example of some permits or licenses as evidence of legal requirement compliances, i.e.:

1. Land of Title (see criterion 2.2)

2. Industrial Permit . Izin Usaha Industri dari Ketua BKPM No.581/T/Pertanian/1985

3. Registration Letter of Plantation Business (Surat Pendaftaran Usaha Perkebunan) No.

HK.350/830/Dj.Bun.5/XI/2001 dated Nov 23, 2001, valid as Plantation Business Permit.

4. POME discharge permit PT. Socfin Indonesia Negeri Lama by Decree of Labuhan Batu Regent no.

503.660/98/BLH/WAS/2011.

However, a major non conformity was raised, it was found that K3 expert for electrical engineering certificates of Mr. Taufik, Mr.Suwiknya, and Mr. Hasan Basri Rajaguguk were not available. This does not meet the Decree of Directorate General industrial Relations and Labor Inspection Number: KEP.311/BW/2002. (see NCR-NL-01).

Status: Comply after correction and corrective action


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

The boundaries of Negeri Lama were inspected at several places and at every instance found to be demarcated. During the assessment, all broken and missing stone boundaries were replaced by Indonesian Land Bureau (Badan Pertanahan National - BPN). There were also Land of Title board at the


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 19 of 51


entrance of each estate displaying the details of its land. The mill/estate managers have ensured proper registration for Land Use Title through Legal Department in Head Office.

Total conscession area based on Land Use Titles was 2,164.80 Ha. Currently, there were no claims on Negeri Lama Unit land by anyone. If any, Socfin has prepared a procedure to resolve conflict, namely Handling of Social Conflict Procedure No. SOC/PSM/9.02/Rev.01 dated Oct 01, 2010. Conflict was handled through mediation, arbitration and/or court.

Status: Comply


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

It was confirmed during assessment that there was no customary right of other users. Prosedur Identifikasi dan Perhitungan Kompensasi Lahan (SOC/PSM/9.05/ Rev 0 tgl 1 Jan 2010.

Status: Comply


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

PT. Socfin Indonesia has Three-Yearly Basis Management Plan (2011-2013) which covers income statement until production plan and its cost. The detail of the management plan is summarized as below (point a – e). Point f is described a replanting program specifically for Negeri Lama unit which has been summarized from Five-Yearly Basis Replanting Program. (2014-2018)

a. Palm Seed Quality Socfinfo is one of the biggest palm seed producers with average of 40 million seed being produced over a year. They produce 2 (two) types of variety which are DXP Unggul Socfindo type L and type Y. Both of varieties have been listed and recognized by Indonesian Government as per Decision letter of agricultural ministry no. 440/Kpts/LB.320/7/2004 and no. 441/Kpts/LB.320/7/2004 dated July 22, 2004, respectively. Some of the excellent characteristics of Socfindo planting materials are average FFB production of 28-32 ton/ha/year, attainable OER of 26–28%, average CPO yield of 7–9 ton/ha/year and homogenous growth rate with an average height increment of 55 cm/year, etc.

b. Planted Area vs FFB Production No planted area expansion within the next three (3) years for Negeri Lama Unit, the total concession area is 2,164.80 ha, while planted area in 2013 is 2,140.00 Ha. As a whole on group basis, the FFB production is projected at around 26.5 ton/ha/year. However, due to replanting being scheduled for some fields, the yields are expected to decrease slightly by 3.4% in 2012 and 3.6% in 2013 respectively as compared to 2011.

c. CPO & PK Production On corporate basis, Oil Extraction Rate (OER) is predicted to be stable in consecutive three (3) years from 2011 to 2013 at 24.10%. But the CPO Production was predicted to be decreased by 2.9% in 2012 and by 3.1% in 2013 compare to 2011. For Negeri Lama unit, projected CPO production are 11,203 ton (2011); 10,852 ton (2012) and 10,372 ton (2013), while projected PK production are 2,066 ton (2011); 1,994 ton (2012) and 1,906 ton (2013).

d. Production Cost and Price prediction Production cost for CPO and PK was predicted to be increasing along with the inflation rate. Whereas for the price of CPO and its by-products will be increasing by 3% due to higher market demand within 2011 to 2013.


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 20 of 51


e. Profit Loss Business Plan 2011 - 2013 This was planned based on production planning, production cost, as well as some assumption made as below:

Increase of CPO’s selling price as above.

Other costs that was projected to be increased by 8% per year in the next 5 years, such trasportaion cost, general cost of Head Quarter Medan, Sertification cost, depreciation cost.

And any other aspects. f. Replanting program

Available for year 2014 – 2018, detailed with HCV restoration program. Total replanting program area in Negeri Lama is 280.48 Ha. Status: Comply


Operating Procedures are appropriately documented and consistently implemented and monitored

Standard Operating Procedures (SOPs) for Palm Oil Plantation No. SOC/PSM/7.10/ Rev 0 / 1 Feb 2007, from land clearing to harvesting, were available, i.e. pre-nursery, main nursery, land preparation and replanting, plant block measurement, land clearing, land and water conservation management, planting, leguminose cover crops (LCC), fertilizing, integrated pest management, harvesting, waste management, until transportation FFB to the mill. Some of procedures were supported by working instructions and the monitoring of operational activities was recorded in operational forms.

SOPs were available for each activies of Mill Operation from Receival of FFB until Dispatch of CPO and they were documented within SOP No. SOC/POM/PSM/7.06 until SOC/POM/PSM/7.10. These procedures were supported by working instruction for each working station loading ramp, sterilizer, hoisting crane operation, stripper, screw presser, continuous tank operation, purifier, vacuum dryer, decanter, sludge separator, fat pit operation, nut silo, nut cracker, separating tank, kernel silo, and clay bath (SOC-POM/IK/01 to SOC-POM/IK/16).

Above mentioned procedures valid for all mill and estate units under Socfindo Group. All documents were controlled by Sustainability Department at the Head Quarter, thus any changes needed will be informed to this department, changes will be made, then after approval, the revised document will be sent back to the related unit (mill and/or estate) while the obsolete document will be withdrawn. Records were kept for 5 years period according to Control of Record Procedure.

Random checked on the field assessment as well as the operational records, showed that the standard of operating procedures were consistently implemented and monitored. For example, nurseries daily report, fertilizing daily report, upkeep daily report, boiler daily report, strelizing daily report, etc. Daily reports will be compiled into Management Monthly Report.

Status: Comply


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

Leaf Sampling (LS) was internally done by the Agronomy Department of the Head Office according to Leaf Analysis Procedure No. SOC/PSM/7.10-1). LS is conducted on a Leaf sampling Unit (LSU) which is an area with a minimum area of 10 Ha. The LSU are taken from frond 9 on immmature palms and from frond 17 on mature palms. The LSU lines are determined in every 10 rows of plants. The first LSU line for each block is started at line No.10 and then with a number multiple of 10, but for a last LSU line is set with 10 row from the last row. LSU sampling conducted every year at least 2 months after the first fertilization program completed, usually carried out at the end of the dry season and early rainy season in (usually in


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 21 of 51


July). Not recommended in long dry season or rainy season with rainfall > 400 mm/ month. The analysis was done by external laboratorium. The analysed parameters were N, P, K, Ca, Mg, Cl (%) B (ppm), Cu (ppm), Zn (ppm).

The available Fertilizing Booklet Program for 2013 of Negeri Lama was derived from the analysis result of leaf and soil. It was confirmed that application of fertilizers (NPK 15,15,15 with dosage of 1 - 1.5 kg/palm/year; NPK 10,10,25 dosage 1 - 2 kg/palm/year; Urea dosis 1 kg/palm/year, ZA dosis 0.5 - 2 kg/palm/year, RP dosage 1.5 - 2 kg/palm/year, TSP dosage 1.5 kg/palm/year, KCl dosage 1.25 -1.75 kg/palm/year, Dolomite dosage 0.5 – 1.0 kg/palm/year, Kieserite dosage 0.15 – 0.7 kg/palm/year and Borax dosis 0.01 -0.075 kg/palm/year) had been given according to the recommendation.

For immature area was covered by LCC Mucuna bracteata and supplemented by Empty Fruit Bunch (EFB) with dosage of 20 ton/ha/year that was placed surrounding the palm and solid as much as 10 ton/ha that was placed on top of the EFB, while for mature palms the dosage is 45 ton/ ha. However, for HCV area the EFB dosage is 30 ton/ ha both for immature and mature palms. According to soil type and production level of several of palm block, management has decided to give a higher amount of EFB, i.e. 45 ton/ha/year. Records of EFB application were available and verified.

Status: Comply


Practices to minimize and control erosion and degradation of soils

Based on Indonesian Soil Classification (PPPT, 1983), there were 6 (six) types of soil in Negeri Lama, i.e. : tropohemist, flivaquents, tropaquepts, dystropepts, tropudults and haplorthox . with a flat slope classes (0-5%). Including marginal land is tropohemist with area approximately of 103.29 hectares..

Socfin has prepared an Erotion Control on Marginal Soil Procedure No. SOC/PSM/7.10-12, As management strategy for plantings on slopes above a certain limit, where for Negeri Lama the slope of the land was dominated with slope of 0-5% covering 2,164.80 ha, therefore no terracing implemented.

Road maintenance program for Socfin consisted of two programs for primary road and secondary road.. Road maintenance program was broken down into Division Monthly Work Plan.

Socfin has prepared a Peat Land Management Working Instruction including Water Management in Peat Land No. SOC-KB/IK/08 Rev. 1 dated Aug 15, 2012. However for Negeri Lama which has peat soil, several blocks in the Division II and Division I often inundated during flood / tide, water gate in Division II were not functioning optimally and the water level in the watergate had never been measured using piezometer, this is not in accordance with the Water Management in Lowland (SOC-KB/IK/06). Thus, a minor non conformity was raised. ( See NCR-NL-02).

Status: Open minor non-conformity that will be verified on the next surveillance audit.


Practices to maintain the quality and availability of surface and ground water

Socfin has established company’s procedure to protect water courses and wetland so called Riparian Zone of River Management Procedure No. SOC/PSM/9.07 Ed. 1 Rev. 1 dated Aug 15, 2012, which was used as the guideline to manage conservation area of riparian buffer zone. It was stated in the procedure that to avoid soil degradation and chemicals run-off to the water body, up-keep activities only done manually without ripping and without using agrochemicals roundabout 8 meters up to 50 meters from the both side of the river, depend on the width of the river itself. After replanting, the oil palms along the river will be replaced with beneficial plants that can trigger the proliferation of natural predators of crop pest, easy to reproduce, low cost, resistance to shade, do not transmit disease to oil palm trees. The


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 22 of 51


recommended plants were listed in the procedure SOC/PSM/4.22 page 7, for example cherry (Mutingia calabura), Asam Kandis (Garcinia parviflora), Awar-awar (Ficus septica), etc. Based on the recommendation of HCV assessor (C.5.2), for river’s width of 3 to 5 meters the buffer zone shall at least 8 meters. Clear demarcation of area where application of agrochemicals is prohibited was confirmed during the field visit.

Water management plan was clearly defined in Water Management for Palm Oil Mill No. SOC SOC/PSM/4.22 Edisi 01 rev. 00 dated Oct 01, 2010, where the water source of each mill and estate under Socfin management has been identified (No. SOC/DP/4.22-01) along with the water distribution list (No. SOC/DP/4.22-02). The water consumption was recorded regularly in a form No. SOC/Form/4.22-01. Monitoring record of water consumption for boiler, process or domestic in Negeri Lama.

However, watering plants in nurseries area was not performed consistently based on data from the previous day rainfall (<10 mm), it was not in accordance with Work Instructions Nurseries Oil Palm (SOC-KKS/IK/01) dated January 1, 2011, for example : the records of daily rainfall during March 2013 were > 10 mm, but watering plants were done. A minor nonconformity was raised. (See NCR-NL-03).

To verify that there was no water pollution due to mill activity, a matrix detailing the Environmental Monitoring Plan (Rencana Pengelolaan Lingkungan/RKL Negeri Lama) was done accordingly, i.e. river water analysis according to PP No. 81/2001 and ground water analysis according to RI Health Ministry Regulation No. 492/MENKES/PER/IV/2010, etc. Checks on records, shown that all tested parameters, i.e. microbiological, inorganic chemical, physical and other chemical parameters were still in within the range of standard. Monitoring of POME BOD.was done regularly by external and internal and reported to Environmental Agency (Badan Lingkungan Hidup) once in three months period. POME was not applied to land, thus the proposed permit was for POME Discharge Permit instead of for Land Application Permit. The POME standard was according to Environmental Ministry Decision No. 51/1995 appendix IV B regarding POME waste standard. Regular analysis result showed that the discharge POME to water body was within the above mentioned standard, , i.e. BOD standard: <100 pp), pH standard: 6-9; N-Total standard: 50 mg/l; Total Suspended Solid (TSS) standard 250 mg/l.

Status: Open minor non-conformity that will be verified on the next surveillance audit


Pests, diseases, weeds and invasively-introduced species are effectively managed using appropriate Integrated Pest Management (IPM) Techniques

An IPM plan is documented and current.

Socfin has established several pocedure for IPM to control pests, diseases and invasive introduced species such as: SOC/PSM/7.10-11 for IPM of Oryctes rhinoceros, SOC/PSM/7.10-13 for IPM of Caterpillar and Bagworm Attack, circular letter No. Tan/Keb.KS/Bi/88/2005 dated May 6, 2005 for IPM of rodent. These procedures were detailing all technical aspects for each pest target, which chemical to be used, application’s time frame, etc. Annual IPM program includes pest and diseases detection, census and controlling, use of pesticide and herbicide was available.

Census and Controlling of Bagworm Program was monthly done while for Ganoderma census was done once in 4-12 months. Other than that, there was a beneficial plants planting program as well for area surrounding HCV, but they can not grow well since mostly in Negeri Lama are tidal area and flooded during rainy season, nevertheless the results of the census during the last 3 years pest caterpillars are still below the critical threshold. As for rodent pest attack rate is quite high as in March 2013, which reached 44.15%. But after controlling action the attack rate had dropped below the threshold (<20%). The control measure for rat attack by using rat bait Notikus (active ingredient Brodifacum 0,005%). Eventhough some nest boxes had been installed, none were occupied with barn owls since 2012. Oryctes Controlling Program was directly done by picking up the larvae with two (2) times rotation for mature oil palm and


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 23 of 51


three (3) times rotation for immature oil palm.

Status: Comply

Criterion 4.6 (C.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.

Agrochemicals that were used by Negeri Lama estate has been registered and licensed by Agriculture Department and listed in Pesticide Commision Book (Buku Komisi Pestisida). The list of pesticide recommendation that can be used by estate was released by Head Agronomy Department (Kepala Bahagian Tanaman) dated January 3, 2013 which detailed with the name of agrochemicals, registration number, species target, and recommended dosage. During the assessment, cross checking between the stock card, book of spraying, and the pesticide commission book was done. For example, Herbicide Round-up 486 SL (Reg. No. RI 01030120001560 valid until March 16, 2016, dosage of 0.5 l/ha) was used in 2012 for all division. Another example was Santador 25 EC (Reg. No. 2138/7-2009/T valid until Aug 10, 2014, dosage of 0.045-0.7 l/ha). An attempt to minimize paraquat usage by reducing the budget in 2013 which lower than in 2012.

According to Agricultural Ministry Decision (Kepmentan) No. 949/Kpts/TP 270/12/98 year 1998 regarding Restricted Pesticide article 5 stated that all handlers of restricted pesticide shall be trained by Pesticide Comission Level I. During the assessment, it was found that not all sprayers at division II that applied restricted pesticide have been trained accordingly to above mentioned regulation. Thus, a major non-conformity was raised (see NCR-NL-04). Both correction and corrective action have been submitted, accepted and verified.

Agrochemicals were stored in the Central Agrochemicals Storage with limited access close to estate manager office, from there agrochemicals were distributed to Agrochemicals storage in each division. separated from fertilizer. Agrochemicals storage was designed with appropriate ventilation. However, Waste Control Procedures for empty pesticide containers SOC/PSM/4.11 were not based on the applicable regulations, namely Regulation 61/2006. There are no guarantees to ensure the washed

pesticide containers under controlled will not be misused. Thus, a major non-conformity was raised (see NCR-NL-05). Both correction and corrective action have been submitted, accepted and verified.

As per requirement, all MSDS of stored agrochemicals and their hazard symbol were available on site. Emergency shower and eyewash facility, complete with Personal Protective Equipment (PPE), such as apron, goggles, respiratory masks, hand gloves and boots to ensure the safetyness of chemicals handler were also provided to anticipate any emergency occurs when handling chemicals. Secondary containment was built around the chemical storage area, to ensure that no chemicals run off that contaminating surrounding environment. Before used, each agrochemical was diluted by designated worker so called Opas Kantor at each division office.

During the assessment, monitoring forms of the list of pregnant and breastfeeding woman was available, confirmed that no pregnant and breastfeeding woman was assigned for spraying activity. This was comply to the requirement as well as to the company’s policy that stated inside the Working Agreement (see C.6.9).

Status: Comply after correction and corrective action.


An occupational health and safety plan is documented, effectively communicated and


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 24 of 51


implemented.

Both Negeri Lama mill and estate have been certified for Occupational Health and Safety Management System. A documented system has been developed and implemented through Health & Safety Annual Program and its target. Target achievement was evaluated every month and was reported quarterly to the management as well as to the local authority. A dedicated and trained officer has been assigned as Healh and safety Engineer to manage the implementaton including conduct HSE inspection.

Each permanent worker receives an accident insurance so called JAMSOSTEK (Jaminan Sosial Tenaga Kerja) as it is required by law. Moreover, workers are free to use policlinic facility which is available on each division of each estate. If the patient cannot be treated in the policlinic due to limited facility, they will be reffered to the nearest Hospital and the medical expenses will be reimbursed to the company

A regular health examination was externally for those who work at high risk working station (boiler, machine room, etc.) covered audiometri, blood, urine and thorax examination, and for some workers, spirometri. The results were well kept.

Risk assessment was done based on Environmental, Health & Safety Aspects Identification Procedure No doc. SOC/PSM/4.04 first edition Rev 05 dated Jan 1, 2011. List of environmental, occupational health and safety aspects (form no. SOC/Form/4.04-01 R.01) and their management (form no. SOC/Form/4.13-02), both were upadated in Sept 1, 2012. Identified risks were controlled and minimized by establishing and socializing safety Procedure and/or Work Instruction, providing PPE as well as installing safety signage in strategic places.

To ensure workers understanding, a training program has been established, for example: Occupational Health and Safety System Socialization by Labor and Transmigration Local Authority Agency which was organized; First Aid Training and Fire Handling Simulation was internally done. All training records were properly kept and verified during the assessment

Provision of PPE is regulated in Procedure of PPE Regulation No. SOC/PSM/4.21 1st Ed., Rev 02 dated

Oct 1, 2010, where standard PPEs were listed and specified in a form no. SOC/DP/4.21-02. However, minor non conformities were found against the procedure (see NCR-NL-06) such as :

Mr. Junaidi did not wear appropriate apron type H2 as per required in “PPE Regulation Procedure” No. SOC/PSM/4.21 1st Ed., Rev 02 dated Oct 1, 2010.

Heat resistant apron and glove were not available on Boiler working station as it was required in “Procedure of PPE Regulation” No. SOC/PSM/4.21 1st Ed., Rev 02 dated Oct 1, 2010.

EFB applicator workers did not wear boots and gloves as required by related working instruction

.

First Aid equipment was provided according to Permenakertrans No. 15/MEN/VIII, 2008. Its adequacy was inspected during field assessment and was found to be satisfying.

Work Accidents were recorded for each incident by field assistant in a form No. SOC/Form/4.14-01 and its investigation was recorded in a form No. SOC/Form/4.14-02. Records were well maintained and regularly reviewed in OHS monthly meeting.



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

Training was conducted based on Human Resource Training Procedure No. SOC/PSM/6.02, where Training Program was divided into two (2) categories, internal and external. Internal training was directly


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 25 of 51


managed by Negeri Lama Unit while external training was managed by Head office Medan.

Monitoring of 2012 Training Program Realization was recorded in form no SOC/Form/6-02-11. Random training records were checked in the assessment, for Fertilizer Management Training First Aid Training and Awareness of RSPO Company’s Higyene, Ergonomy, and Health Training for one of paramedic team (according to Permenaker 01/Men/1979) from the training invitation (No. SOC/Form/5.01-02), the attendance list (No. SOC/Form/5.01-03), training material, until updated individual training record (No. SOC/Form/6.02-03 Rev 01). Records shown that the training program and records were satisfactorily managed.

To provide experienced or trained contractors was one of the requirements that need to be fulfilled by all competing contractors in tendering process (Contractor/Supplier Selection). In this process, all supporting documents need to be submitted to be evaluated, such as company’s profile, workers training certificate/licenses, finance records, etc. The eligible contractor will be selected in the end. This is one of efforts that Socfin has made to ensure that Negeri Lama used experienced or trained contractors. After a contractor was chosen, the workers member will be briefed regarding Socfin’s Environmental, Health and Safety (EHS) Policy before they conducted the job, this was recorded in form no. SOC/Form/4.16-02.

Status: Comply

Criterion 5.1 (C.5.1) Environment aspects of plantation and mill management, including replanting, that have environmental impacts are identified, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continuous improvement.

Environmental Impact Assessment reports, i.e. Environmental Impact Analysis (ANDAL), RKL and RPL for Negeri Lama Mill and Estate were available. Negeri Lama Mill and Estate has implemented Identification of Environmental Aspect Procedure No. SOC/PSM/4.04 and evaluating its impact based on Environmental Management System ISO 14001:2004. The result of environmental aspect and impact identification and evaluation was documented within Identification of Environmental Aspect, SOC/Form/4.04-01.

Negeri Lama Mill and Estate has managed all activities with significant environmental impacts carefully, where defined control measures were implemented to prevent or mitigate all possibilities of negative environmental impact as much as they can. Control measures were defined within a Significant Environmental Aspect Mangement form No. SOC/Form/4.13-02.

Quarterly Report of the implementation of Environmental Management Plan and Environmental Monitoring Plan was available. The reports were submitted to Bapedalda (Environmental Agency) Labuhan Batu Regency.

No changes in operating areas or activities has been made thus there is no need to revise the existing environmental management document.

Status: Comply

Criterion 5.2 (C.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.

HCV assessment was done in July-August 2011 by Faculty of Forestry, Bogor Agricultural Institute. The assessor team is consist of six (6) members (Ir. Djoko Arie Sulistianto, Ir. Heru bagus Pulunggono, MSc., Ahmad Fasial Siregar, S. Hut., Sutopo, S. Hut., M. Sayidina Ali, Amd., Udi Kusdinar, S. Hut.) and was led by Ir. Nyoto Santoso, MS. Based on the list of HCV RSPO approved assessor updated on Sep 1, 2012, the leader and all the member of HCV assessor are approved and the approvals are still valid.


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 26 of 51


Based on assessment report, identified HCVs were HCV1.2 (endangered species), HCV 4.1 (river), and HCV 6 (cemetery) within total area of 25.23 ha (1.17% from total HGU of Negeri Lama area). Identified HCV habitats and rare, threatened/endangered species, are managed and monitored based on procedure No. SOC/PSM/9.06 2nd Ed. Rev 00 dated Jan 1, 2011 and for buffer zone of river referred to Conservation Areal Procedure (SOC/PSM/9.07).

HCV Management & Monitoring Program was available as per requirement, which was drafted according to internal Socfin’s Procedure of “HCV Management & Monitoring” No. SOC/PSM/9.06 rev 00 dated Jan 01, 2013. Examples of management and monitoring activities within the program were riparian area management as a buffer zone (SOC/PSM/9.07) by manual upkeep activity, applied organic fertilizer (Empty Fruit Bunch), planting of beneficial plants (75% of Cassia sp., 12.5% of Antigonon, and 12.5% ofTurnera sp.); Signage installment in strategic places; HCV area socialization to stakeholders; training for HCV appointed operators, lining of cemetery borders, etc. Negeri Lama management has been appointed dedicated and trained officers from all divisions to monitor HCV monitoring program .Monitoring the realization of the program was well recorded and has been verified during the assessment.

Status: Comply

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

Negeri Lama Unit (Mill and Estate) has identified the sources of pollution and emission that were generated from their activities. The source of pollution and type of waste was documented within Identification of Environmental Aspect No. SOC/Form/4.04-01 as well as within Appendix I – Monitoring and Measurement of Air Pollution year 2010.

“Waste Handling Procedure” No. SOC/PSM/4.11 was available. Wastes were listed in a form of “Identification and Management of Waste” (No. SOC/Form/4,11-01) updated on Jan 4, 2012, which described each activity or location that became the source of wastes, wastes classification (organic or inorganic or hazardous), and their control measure as waste management plan were available.

Hazardous waste manifest records were available for the latest picked-up by CV. Amindy Barokah, a trasporter company with valid license., shipping permit validity had been verified during assessment.

However, during site visit and intrviews with workers, it was found found that clothes / aprons of sprayers employees were washed at employees’s homes. A Major nonconformity was raised (see NCR No. NCR-NL-07.

Status: Comply after correction and corrective action.

Criterion 5.4 (C.5.4) Efficiency of energy use and use of renewable energy is maximized.

Records of monitoring renewable energy use and its efficiency analysis (energy/ton CPO, or energy/ton palm product) were available from January 2013 as the corrective action of stage I audit finding, where the number of fiber and shell produced were based on mass balance of CPO production. 100% of fiber produced was used for feeding the boiler while not all shell produced was used for boiler.

The usage of fossil fuels was well recorded. Every management unit, including Negeri Lama Mill and Estate have identify their equipment and transportation that use fossil fuel and report the usage of it in a form of “Engine Performance Report”, the realization of fossil fuel is monthly monitored against the budget

Status: Comply


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 27 of 51


Criterion 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.

Socfin has established a zero burning policy and it was documented in “Ethics Policy” No. SOC/Dp/4.01-64 article 11. This policy was socialized by OHS officer to the replanting contractor who was hired to do replanting each time before the contractor conduct the work. To ensure zero burning activities, the contractor was monitored regularly through OHS inspection for contractor. Appropriate fire extingushers and facilities were available, with regular inspection of their functionality.

Status: Comply.

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

According to Mill’s EIA, boiler is one of the sources of pollution and emission. The boilers are equipped with safety latches to doors which are still working properly as well as safety valve that automatically open/close to regulate pressure inside the boiler. Since the palm oil mill is not one of the industries mentioned in Environmental Ministry Decree (KepmenLH) No. 13/1995 section 2 article 1, thus it is not an obligatory to install smoke density monitoring and recorder control equipment. But the mill is obliged to monitor the emission parameters in accordance with the regulations twice a year as per Environmental Ministry Regulation (PermenLH) No. 7/2007 section 6b.

For Negeri Lama Mill, the latest emissions test of boilers and gensets were tested by the Testing Laboratory The Institute for Industrial Research and Standardization of Medan, an external independent laboratory. The results were biannually reported to Environmental Department Agency in a form of RKL-RPL (Environment Management and Monitoring) Semester Report. The parameters tested for boiler are SO2, NO.2, H2S, particulate, etc. as per the Ministry of Environment Indonesia regulation “Peraturan Menteri Lingkungan Hidup No. 07/2007”. The latest monitoring result in Period II 2012 showed that all parameters were under controlled.:

Status: Comply

Criterion 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 continuous improvement.

Social Environmental Impact Assessment Report (RKL dan RPL (Amdal) Perkebunan Kelapa Sawit dan Pengolahannya Negeri Lama Unit, Revised version) was available and had been verified during assessment.

For its monitoring, Socfin has developed an internal procedure, so called Social Impact Assessment Procedure No. SOC/PSM/9.03 dated Jan 1, 2010. However, based on monitoring report of Social Environmental Impact Assessment year 2012, auditor concluded that the result was insufficient. The aspects that were monitored such as road access right, infrastructure development, job opportunity, etc., were described only qualitatively, without being supported with enough data comparison. For example, with the existence of Negeri Lama Unit, the job opportunity has increased, with no detail explanation of how much the increament. Thus, a minor nonconformity was raised (see NCR-NL-08)



Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 28 of 51


Criterion 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

Socfin has prepared a documented procedure for communication and consultation, namely Social Communication Procedure No. SOC/PSM/9.01 Edition : 01, Rev : 02, dated Jan 1, 2013. This procedure covers 2 parts, i.e. handling of information and aspiration’s request and communication & consultation with stakeholders. The aim of organizing communication and consultation forum through, for example, a stakeholder meeting was to maintain good relationship with local communities and other stakeholders. Minutes Meetings of conducted stakeholder meetings that had been done were recorded in form No. SOC/Form/4.07-01 and the Attendance List in a form No. SOC/Form/5.01-03. Records were well kept.

The updated list of stakeholders was available (see Table 2-1 List of Stakeholder surrounding Negeri Lama Unit. Each estate was responsible to update the list of stakeholder. The records of request of aspiration

and its reponses were available. They were monitored with a form No. SOC/Form/9.01-02 Aspiration Request Monitoring Form.

Estate Manager (Pengurus) of Negeri Lama has been appointed by Head of General Department and General Manager, regarding appointment of a dedicated person responsible for consulting and communicating with local procedure.

Status: Comply

Criterion 6.3

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

Socfin has established a system for handling internal and external grievances and dispute resolution in a documented procedures, which was in accordance with applicable regulation UU No. 2/2004, namely Social Complaint Handling Procedure No. SOC/PSM/9.02 dated Oct 1, 2010.

External complaint include land dispute, environmental issue, access to public facility such as bridge, road and job vacancies or company contribution to stakeholder. If the problem can not be resolved by negotioation, the company will take legal action involving related institution.These procedures had been socialized to internal and external stakeholders during stakeholder meeting. During the assessment, it was confirmed that there were no complaints from related parties.

Status: Comply

Criterion 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 stake-holders to express their views through their own representative institutions.

Socfin has established a procedure for identification and calculation of fair compensation for land, namely Prosedur Identifikasi dan Perhitungan Kompensasi Lahan No. SOC/PSM/9.05, Ed. 01, Rev. 00, dated Jan 1, 2010, supported with Land Acquisition Procedure No. SOC/PSM/9.04. These procedures covered an identification of reserved land for plantation development, identification of the land lord, conflict resolution, and land compensation. Land conflict will be handled through a deliberation looking for a win-win solution. If the dispute is not settled, then the case will be brought up to court.

No latest land compensation has been made.


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 29 of 51


Status: Comply

Criterion 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. Socfin has policy for pay and conditions for employess in Ethics Policy No. SOC/Dp/4.01-64. Employee’s pay rate for 2013 was according to the List of Payment Rate for Non-Staf PT. Socfin year 2013, where it was stated that the payrate was 1,416,00 IDR exclude 15 kg additional rice, with average rice price around 7,700 – 8,000 IDR. This was above the Sumatera North Province Minimum Payrate which was 1,375,000 IDR per month. As the company’s policy, extra rice will be monthly given to worker, with following specification: 15 kg per worker, 9 kg per worker’s wife, and 7.5 kg per woker’s children.

Worker’s contract is available in a form of “Working Agreement” dated Dec 17, 2012 (Perjanjian Kerja Bersama), where the entire worker’s right and obligation are detailed within.

Housing: Company provided houses for workers. Normally, it was a duplex (two doors under one roof) semi permanent house. Some of the newly built houses were permanent houses equipped with two rooms, one living room, one kitchen and one toilet. Other public facilities provided by the company within for employee and local community including school and clinic for each division, worship building, sport facility.

Working Agreements entered into with contractors were available. in the contract was clearly defined the contractor’s right and obligation, in compliance with Labor Act No. 13/2003, such as not providing underage workers, contractor shall provide accident insurance (Jamsostek) to the worker, contractor shall pay the worker as per regulation, contractor shall provide PPE, etc. However, it was found during field assessment, based on interview result to daily worker (BHL) on field assessment, it was found that no standard PPEs and working tools provided for daily. Thus, a minor non-conformity was raised (see NCR-NL-09).


Criterion 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.

Socfin has documented policy regarding the recognizing freedom of association and respect for every worker to have the right to form and to be a member of labor union under “Ethics Policy” No. SOC/Dp/4.01-64 dated Feb 1, 2011. Workers were free to join Labor Union, namely “Serikat Pekerja Seluruh Indonesia - SPSI” . Bipartite meeting records between SPSI Negeri Lama and Estate

Management were available.

Status: Comply

Criterion 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 programs. Children are not exposed to hazardous working conditions.

Socfin has a documented company policy on worker age requirement under “Ethics Policy” No. SOC/Dp/4.01-64 dated Feb 1, 2011, which is in accordance with national laws Minimum Worker’s Age Act No. 20 year 1999, where is stated that the minimum employed worker’s age is 18.

Records of recruitment requirement shown that minimum age of 18 was required which was proved with submitting birth of certificate, identity card, or other such as driving license along with job application


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 30 of 51


List of employee consisted of private worker’s data including their age showed that there were no underage workers. Randomly cross checked on field observation, it was confirmed that indeed no underage children are being employed.

Status: Comply

Criterion 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.

An equal opportunities policy was documented in “Ethics Policy” No. SOC/Dp/4.01-64 regarding Indiscriminative Treatment, dated Feb 1, 2011. In the policy stated that Socfin will give an equal opportunities to all employees based on their interest and their capability rather than their race, caste, national origin, religion, disability, gender, sexual orientation, etc. This is complying with the requirement as well as the Labor Act RI No. 13/2003 chapter III article 5 & 6.

Status: Comply

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

A company policy on sexual harassment and violence was documented in Protection of Sexual Harassment and Physical Abusement No. SOC/Dp/4.01-64 dated Feb 1, 2011. The procedure has been explained to all workers to ensure their understanding. Records of the meetings to communicate the policy have been well kept. Sexual harassment and physical abusement have been actively monitored by the team member of Gender Committee which has been formed in 2012. Interviews with female workers confirmed that they understood the policy and knew the grievance mechanism for complaints, if an employee are sexually harassed or physically abuse by her/his colleague or superior, they will report it directly to the team of Gender Committee, and Gender committee will handle the complaint according to “Complaint Handling Procedure” No. SOC/PSM/9.02. Up to the assessment, no complaint records have been found.

As the implementation of female employee’s reproductive right, according to working agreement, female employees will get her right to take menstrual leave for two days every month, 90 days maternity leave, and she has the right to breastfeeding the baby and will not be placed at high risk working station such as handling agrochemicals, spraying, etc.

Status: Comply

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

Up to the main assessment, there is no involvement of smallholders as well as out growers in FFB supply of Negeri Lama Unit. A 100% of FFB sources comes from own estates.

Status: N/A Criterion 6.11 Grower and mills contribute to local sustainable development wherever appropriate.

Socfin has a prepared a procedure for Corporate Social Responsibility (CSR), namely CSR Procedure No. SOC/PSM/9.08. Records of company contributions to the local development were represented as CSR program and its realization, as wells as retribution payment and income tax payment. Retribution payment such as water retribution, water treatment retribution, IUP (plantation permit) retribution etc which contribute to local government income. A few examples for CSR activities in Negeri Lama that have been done in 2012 are as follow:


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 31 of 51


January : supply clean water for mushalla

February : oil palm good agricultural practices training for villagers surrounding Negeri Lama.

March : Immunization program for babies and toddlers; scholarships for employee’s children.

April : Fogging to eradicate mosquitos

May : Road village maintenance

January to December : bridge development

Status: Comply

Criterion 7.0

No new planting planned on any estate included in the scope of this assessment.

Principle 7 is not applicable to this assessment.

Criterion 8.1 Growers and mills regularly monitor and review their activities and develop and implement action plans that allow demonstrable continuous improvement in key operations.

NLU has committed to a process of continuous improvement by adopting the RSPO P & C and getting certified for its integrated management system - QMS ISO 9001, EMS ISO 14001 and OHSAS 18001. An integrated internal audit and management review is done at least once a year to evaluate the systems. Action plans have been developed for the next one to three years for continuous improvement in key operations through quality, environmental, and safety objectives for every mill and estate.

For operational effciency, NLU has invested in several items, such as:

a. Tri-motorcycle that is used to distribute agrochemicals to estate blocks. b. Application of EFB and solid as organic fertilizer to reduce inorganic fertilizer. c. Elbow installment to control waste water pond outlet if analysis result shows that the waste water

quality is above standard; adding 3 aerators. d. Boiler station at mill :installing double flux faucet, waste steam pipes to decanter and fat pit;

adding blower; installing manometer. e. Installing inverter in ripple mill station; installing bucket barrier for lorry.

Status: Comply


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 32 of 51


3.2 Identified Non Conformances and Noteworthy positive components.

This section gives an over view of new or revised non-conformities raised during this assessment and of

action taken to close out non-conformities rose during the previous assessments.

3.2.1 Detail of Non Conformity

All raised non conformities are summarized and attached in Appendix 6 Summary of Non-Conformity Report (NCR)

.

3.2.2 Resume of Audit Results

Table 3-2 Resume of Audit Results

Indonesian National Interpretation of RSPO Principles and Criteria

P&C 1.1 1.2 2.1 2.2 2.3 3.1 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 5.1 5.2 5.3 5.4 5.5 5.6 6.1 6.2 6.3 6.4 6.5 6.7 6.8 6.9 6.10 6.11 7 8.1

Status

1 1 3 1 1 1 1 1 2 2 1 3;3 2 1 1 1 3 1 1 1 2 1 1 1 2 1 1 1 1 1 NA 1

#NC 0 0 1 0 0 0 0 0 1 1 0 1;1 1 0 0 0 1 0 0 0 1 0 0 0 1 0 0 0 0 0 - 0

RSPO Supply Chain Certification Standard: Module E – Mass Balance

SCC 1.1 a 1.1 b 1.2 2.1 2.2 3.1 3.2 3.3 a 3.3 b 3.3 c 3.4 4.1 5.1 5.2 5.3 6.1 7.1

Status

1 1 1 1 1 1 1 1 1 1 1 1 NA NA NA 1 1

#NC 0 0 0 0 0 0 0 0 0 0 0 0 NA NA NA 0 0

NOTE: Audited:

“1” Conforming; “2” Minor Non-Conformity; “3” Major Non-Conformity; “NA” not applicable, “#NC” : Number of Non-Conformities found

AUDIT OUTCOME

P&C audit, 4 Non-Conformities MAJOR

5 Non-Conformities MINOR

SCC audit module E 0 Non-Conformities MAJOR


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 33 of 51


3.3 Audit Recommendation

Results RSPO P&C and SCC POM

Fulfilled

Open nonconformities Major ; Minor

Not fulfilled

Follow up actions

None

Document review

Follow up audit (on-site)

Next audit

Recommendations

Grant/ Renewal/ Extension*

Maintenance*

Suspension

Refuse / Withdrawal

*) Grant / Renewal / Extension / Maintenance in the case of open nonconformities assumes that the nonconformities will be cleared as agreed


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 34 of 51


3.4 Issues Raised by Stakeholders

As it has been explained in chapter 2.5 that there was no specific arrangement of stakeholder meeting for

Negeri Lama unit, extenal and internal stakeholders were randomly chosen to be interviewed during the

assessment period (08 to 12 April, 2013).

The summaries of interview results are as follows:

No Contacted Internal/External

Stakeholders

Remarks/Aspiration/

Comments: (+) and/or (-)

1 Secretary, Kaur Umum and community leader(tokoh masyarakat) of Negeri Lama Seberang Village

Respondents' awareness of the RSPO is quite good, because they have been invited and attending RSPO socialization by the company, as well as the location of the village is located close to the company so that activities of the company including RSPO information more accessible. According to respondents, the RSPO is a program that aims to improve the plantation environment, such as waste management, environmental conservation, and enhancement of cooperation between the company and the community.

Respondents aware of any HCV, areas such as riverbanks, cemeteries. According to the respondents HCV is an area that should be protected. In addition to these areas, the presence of rare fauna and flora need to be protected, such as hawk, heron, and lizards, as well as the banyan tree at the shrine.

Benefits of the existence of the company to village and community, such as: the absorption of labor force; infrastructures development, rehabilitation and maintenance (mosque, building, bridges, street light, road compacting; supply potable water for community event; contribution to religious activities, such as Safari Ramadan and other religious activities.

Currently there are no significant major issues between the company and the community. Relationship with the community is quite good.

Suggestion : 1. The elevation of the road / dike to prevent flooding. Flooding is

a major issue of natural disasters that occurred in the area of Negeri Lama, which usually happens 2-3 times a year.

2. A limited permission to utilize the plantation area for cattle grazing. Currently parts of the plantation has been used for grazing livestock.

2. Manager of employee cooperative

Facilities for enhanced cooperative, if possible capital investment in the company, as only relying on membership dues (principal and mandatory fees) besides the contract commission of the cooperative with the Company.

3, SPSI (Labor union) Leader Currently there are no significant major issues between employee / SPSI members and management.


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 35 of 51


The results of the meeting between members of SPSI suggested to improve premi (incentives) and to improve communication.

4 Head of playgroup and kindergarten

The company helped to maintain the village office building and supply clean water for play group and kindergarten activities for 3 years. However, the clean water supply was discontinued as the company has found out residents living near the kindergarten were using the water. Nonetheless, the company is urged to find an alternative to continue the supply of clean water to the kindergarten, especially during the study hours (07:30 to 10:00). It was hoped that the company can contribute some financial incentives to help supplement the low earnings of the kindergarten teachers.

5. Gender Committe Head and Spraying women worker

Has been formed since Dec 24, 2012.

Committee activity such as Ethics Policy and Sexual Harrasment Prevention Socialization.

No sexual harassment issues yet.

Aspiration: for pregnant workers who assigned for upkeep activities should not be located at hilly area

To include mung beans as an additional food item supplied to the spraying workers. Currently, the extra food items given to them are eggs (1 egg / month), sweetened condensed milk (1 can / month) and vitamins.

6 Harvester

Average gross salary in a month was 2,100,000 IDR (above minimum payrate), bonus for 4x basic salary in a year.

PPE and working tools were provided by Socfin

All medical expenses were covered by Socfin

No complaint


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 36 of 51


4 Certified Organization’s Acknowledgement of Internal Responsibility

4.1 Formal Sign-off of Assessment Findings

I the undersigned, being the legal representative of the inspected company, agree with the contents of this

report and accept the liability in execution of the instructions given in the report.

Signed for and on behalf of


Medan – November 25, 2013

Head of Sustainability Department

(Mr. Hasan Bisri K.)

Signed for and on behalf of PT. TÜV NORD Indonesia –


Jakarta –November 25, 2013

Lead Auditor

(Wieke Savitiri)


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 37 of 51


Appendix 1 List of Abbreviations

AMDAL Analisis Mengenai Dampak Lingkungan

(Environmental Impact Assessment)

NC Non Conformity

BOD Biological Oxygen Demand OER Oil Extraction Rate

BPN Badan Pertanahan Nasional (National Land Body) OPRS Oil Palm Research Station

BLHD Badan Lingkungan Hidup Daerah

Local Enviromental Body

OSH Occupational Safety and Health

CPO Crude Palm Oil OSHAS Occupational Safety and Health Assessment Scheme

CSPO Crude Sustainable Palm Oil P&C Principle and Criteria

CSR Corporate Social Responsibility PEFC Program for the Endorsement of Forest Certification

EFB Empty Fruit Bunch PK Palm Kernel

EMS Environmental Management System PKB Perjanjian Kerja Bersama (Collective Agreement)

FFB Fresh Fruit Bunch POM Palm Oil Mill

GPS Global Positioning System POME Palm Oil Mill Effluent

HCV High Conservation Value PPE Personal Protective Equipment

HCVF High Conservation Value Forest PT Perseroan Terbatas (Limited Company)

HGU Hak Guna Usaha (Land Right) R&D Research and Development

HIRA Hazard identification and risk assessment RKL Rencana Pengelolaan Lingkungan Hidup

(Environmental Management Plan)

IPM Integrated Pest Management RPL Rencana Pemantauan Lingkungan Hidup

(Environmental Monitoring Plan)

IUP Ijin Usaha Perkebunan (Land use permit) RSPO Roundtable on Sustainable Palm Oil

Jamsostek Jaminan Sosial Tenaga Kerja (Social Insurance for Employees)

RSPO NI Roundtable on Sustainable Palm Oil National Interpretation

Kapospol Kepala Pos Polisi (Head of Police Station) SA8000 Social Accountability 8000

MOU Memorandum of Understanding SIA Social Impact Assessment

K3 Kesehatan dan Keselamatan Kerja

(Occupational Health and Safety)

Socfin PT. Socfin Indonesia

KER Kernel Extraction Rate SOP Standard Operating Procedure

KUD Koperasi Unit Desa (Village Cooperatives) UKL Upaya Pengelolaan Lingkungan Hidup

(Environmental Management Effort)

MSDS Material Safety Data Sheet UPL Upaya Pemantauan Lingkungan Hidup

(Environmental Monitoring Effort)


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 38 of 51


Appendix 2 Draft of Certificate

C E R T I F I C A T E In accordance with TÜV NORD Indonesia procedures, it is hereby certificate that given to:


Head Office : Jl. K.L. Yos Sudarso No. 106 Medan, North Sumatera 20115, Indonesia

Negeri Lama Mill and Supply Base

Name of Mill and Estate

Location GPS Coordinates

Negeri Lama Mill Bilah Hilir Dictrict, Labuhan Batu Regency, North Sumatera Province, Indonesia

02°19’02.10’’ (N)

100°04’12.61’’ (E)

Negeri Lama Estate


02°18’36.85’’(N) - 02°21’14.36’’ (N)

100°02’00.06’’ (E) - 100°05’17.84’’ (E)

Applies a Sustainable Palm Oil Management System in line with National Interpretation of RSPO Principles and Criteria for Sustainable Palm Oil Production of Republic of Indonesia ver. May 2008 and RSPO Supply Chain Standard ver. Nov 25, 2011 Module E – Mass Balance Scheme

Production of Crude Palm Oil and Palm Kernel CPO Tonnage Total Production 10,357 ton CPO Tonnage Claimed 10,357 ton Palm Kernel (PK) Tonnage Total Production 1,860 ton Palm Kernel (PK) Tonnage Claimed 1,860 ton Certificate Registration No: xxxxxxx

Audit Report No. P&C-D-131

Issued date of Certificate : xxxxxx Valid Certificate : xxxxx


Robert Napitupulu President Director This certification was carryout in accordance with the TÜV NORD Indonesia auditing and certification procedures

and is subject to regular surveillance audits.


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 39 of 51


Annex to Cer t i f icate – RSPO (Supply Base)

Certificate Registration No: xxxxx

Following Certification Scope of Mill Supply Bases

Name of Mill and Estate

Location GPS Coordinates FFB

production (ton/year)

Negeri Lama unit


02°18’36.85’’(N) - 02°21’14.36’’ (N)

100°02’00.06’’ (E) - 100°05’17.84’’ (E) 43,682


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 40 of 51


Appendix 3 Updated Time Bound Plan

*Source: 2012


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 41 of 51


Appendix 4 Summary of the findings for compliance with the RSPO Supply Chain Module E (Mass Balance) ver. November 2011

STANDARD SG MB RESULT

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

√ √

Procedure supply chain certification system POM No doc. SOC/PSM/9.09 Ed. 01 Rev. 01 dated Jan 01, 2013. This procedure is supported by Internal computerized system so called Harvest Plus for inputting FFB received and processed quantity (both for FFB from own estate as well as third party), CPO and PK Production from own estate.

While for CPO production comes from FFB third party calculate based on SOC/DP/9.09-02

Harvest Plus system does not differentiate whether CSPO or CPO which is delivered to a certain buyer thus the additional record is made manually to a form so called form of Daily Production report.

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.

√ √

Socfin’s Head of Sustainability Department is the person who has overall responsibility for and authority over the implementation of these requirements to all POMs under Socfindo. Since his working base is at the head office Medan, for Negeri Lama POM, he has appointed an officer in the mill (Krani I of Negeri Lama), to help him to monitor, to control and to record the incoming FFB until dispatched CPO. Krani I is responsible to input all the data into the Harvest Plus System (SOP Supply Chain Certification System POM No doc. SOC/PSM/9.09 Ed. 01 Rev. 01 dated Jan 01, 2013 chapter E Stock Record page #7)

1.2

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

√ √ Procedure for receiving FFB No. SOC-POM/PSM/7.08

1st Ed. Rev 01 dated May 1, 2007.

Procedure for processing FFB No. SOC/DP/9.09-01.

2. PURCHASING AND GOODS IN


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 42 of 51



2.1

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

√ √

Differentiation has been made to validate between certified and non-certified volumes in the supporting records such as in Surat Pengantar (delivery order) SOC/IK/Form/10.02. “MASS BALANCE” mark is representing the certified FFB/certified CPO/certified PK.

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

√ √

Once there is a projected overproduction SOCFIN has a mechanism to inform CB. The projected overproduction number will be informed directly via email to related CB’s sales person carbon copied (cc.) to related auditor(s) and CB System Certification Manager. The projected overproduction notification will be attached with the evidence needed to prove the ability of SOCFIN to achieve an overproduction.

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.

√ √

As per SOP “SCCS file record keeping guidance” No. SOC/DP/9.09-03, records of FFB receival until CPO and PK Despatching Reports were highly maintained and kept, with clear description of FFB source, i.e.:

1. Third party 2. Sister Estate (Estate under one group) 3. Own Estate

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

√ √ As per SOP “SCCS file record keeping guidance” No. SOC/DP/9.09-03, that records and reports will be kept for five (5) years period.

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.

√ √

Systematically, three-monthly basis data can be easily shown.

Manually, as per SOP “SCCS file record keeping guidance” No. SOC/DP/9.09-03, Krani I of Negeri Lama as person in charge to withdrawn data from the system, save it as excel file, compile the data on a three-monthly basis then send it to Head Quarter Medan via email, to be centrally saved.


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 43 of 51



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.

x √

Conversion ratios stated by RSPO are applied for controlling production. The real measurement of CPO produced is by measuring the tank with sounding method (the height from oil’s surface to the bottom, as well as oil’s temperature), while PK production is determined from the height of kernel inside a silo.

c. The facility can only deliver Mass Balance sales from a positive stock. However, a facility is allowed to sell short.

x √ This delivery procedure is within the Supply Chain Certification System POM No. SOC/PSM/9.09 chapter B point 5.2.3 – 5.3.7

3.4

The following trade names should be used and specified in relevant documents, e.g. purchase

√ √ Actual implementation could only be verified at the next surveillance audit.

4. SALES AND GOOD OUT

4.1

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

√ √

Supporting documents for CPO delivered to a third party buyer are: Delivery Note no. form SOC/IK/Form/10.02, describes delivery date, vehicles number, docket number, ticket number, product’s type delivered, invoice number, delivery order or reference number, CPO quality test result (FFA and oil’s temperature), delivered quantity (brutto, tarra and netto), as well as filling time and delivery time, attached along weighbridge docket and acknowledgement letter from CPO transporter UD. Gunung Kawi (third party)

Supporting documents for CPO delivered to FRF Tanah Gambus (a refinery under Socfin group) are: Delivery Note No. form SOC/IK/Form/10.02, weighbridge docket SOC/Form/10.03, Delivery Order No Form. SOC-FRF/PKOF/Form/7.06.02.04, along with investigation report (berita acara pemeriksaan) no form SOC-FRF/PKOF/FPRM/7.06.01-10.

5. PROCESSING

5.1

The facility shall assure and verify through clear procedures and record keeping that the RSPO certified palm oil is kept segregated from non-certified material including during

√ x N/A for Mass Balance


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 44 of 51



transport and storage and be able to demonstrate that is has taken all reasonable measures to ensure that contamination is avoided. The objective is for 100 % segregated material to be reached. The systems should guarantee the minimum standard of 95 % segregated physical material9; up to 5 % contamination is allowed.

5.2

The facility shall provide documented proof that the RSPO certified palm oil can be traced backto only certified segregated material.


5.3

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 operator conforms to these requirements for segregation·The crush is covered through a signed and enforceable agreement


6. TRAINING

6.1

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

√ √ Training was conducted on Oct 5, 2012, with Mr. Hasan Bisri as the trainer, to all POM staffs and workers, as well as the contractor used to dispatch CPO to the refinery.

7. CLAIMS


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 45 of 51



7.1

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

√ √

No claims have been made under RSPO certified palm oil scheme, nevertheless the facility is aware of RSPO Rules for Communication and Claims standard. However, Socfin has not decided which type of Trademark (™) that Negeri Lama will use in future trading. The implementation will be further verified in the next surveillance audit.


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 46 of 51


Appendix 5 Audit Plan

Negeri Lama Unit

Aek Loba Unit

Mata Pao Unit

Sungai Liput Unit

: 08-12.04.2013

: 15-20.04.2013

: 22-26.04.2013

: 29.04 -02.05.2013

Negeri Lama

Day 1

08.04.2013

Traveling to site location Negeri Lama

Opening meeting.

Introduction by team leader. Introduction of team members and assessment agenda.

Presentation by Manager (Estate and Mill).

Day. 2

09.04.2013

Negeri Lama Office

Team : WS, KB, SP, US

P. 2,1, 2,2, 2.3

3,1, 4.7,4.8, 5.1, 6.1, , 5.2

P8.1

Verification of corrective action from Stage I

Document review of all aspects and collecting data: Environmental (AMDAL, RKL/RPL), Social (SIA), HCV, OSH and related Operational Procedures

Regulation compliance, land-use right, customary right, Actual and budgeted production, Training, Continual improvement

Day. 2

09.04.2013

Negeri Lama Estate

Team : WS, SP

P. 2.2

P 4.1, 4.2, 4.3, 4.4, 4.5, 4.6, 4

P 5.1, 5.2, 5.3, 5.5, 5.6

Legal boundaries

Field Observation for All Operations

Soil maps, land preparation, ground cover, Soil erosion, peat soils management, Pesticide application programs. IPM, Harvesting sites and efficiency, fertilizing operations

Road maintenance. Run off.

POME or EFB application – site verification and records

HCV’s

Identification. Management plans. Environmental

Impact Assessments. Implementation.

Riparian zones.

Width. Current and future management. Non

maintenance regimes.

Water management. Water courses. Water monitoring

New planting sites.Zero burn

Day 2

09.04.2013

Negeri Lama Estate

Team : KB & US

P 4.1, 4.6, 4.7, 4.8,

P 5.1, 5.3, 5.6

P 6.2, 6.3, 6.4, 6.5, 6.6, 6.8, 6.9, 6.10, 6.11

Field Operations Inspections

Warehouse : chemical and waste storage

Pollution and waste management

Training

First aiders and boxes, OSH implementation

Worker interviews.

OSH. Sexual, religious, racial harassment. Pay and contracts. Child labor. First aid. Awareness.

Facilities for employees:

Housing, water and electricity supply, clinic, school, child daycare, insurance, worship building

Local communities

Site visit to village. Contributions made. Employment


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 47 of 51


opportunities. Social impacts. Complaints procedures.

Day 3

10.04.2013

Negeri Lama Mill

Team : WS, SP, KB, US

P 4.1, 4.4, 4.6, 4.7, 4.8

P 5.1, 5.3, 5.4, 5.6

P 6.2, 6.3, 6.4, 6.5, 6.6, 6.8, 6.9, 6.10,

Mill Operations

Mill SOP’s. Safe working environment. Gen sets. Walk ways. Signs. EFB. POME treatment. Emissions. Mass balance. Diesel tanks. PPE. Fire extinguishers. First aiders and boxes. Fuel and water usage.

Workshops.

Oil traps. Safe working environment. PPE. Diesel tanks. Environmental waste management. Road maintenance program

OSH Committee.

Training. Management structure. First aiders.

Worker interviews.

OSH. Sexual, religious, racial harassment. Pay and contracts.

Chemical stores.

Storage. MSDS leaflets. Herbicide mixing areas. PPE. Ventilation. Security.

Waste Treatment

Interviews with householders. Inspection of water discharge points. Water improvement plans. Waste disposal

Energy Eficiency.

Energy use and use of renewable energy.

SCCS

FFB receiveing and CPO delivery

Day 4

11.04.2013

Negeri Lama Office

Team : WS,KB, SP, US

Full document review:

Completion of the checklist. Review and documentation of evidence. All aspects of RSPO P&C’s and SCCS

Auditor review

Closing Meeting

Chaired by the assessment team leader.

Presentation of findings by the assessment team.

Questions and answers.

Final summary by team leader.

Day 5

12.04.2013

Travelling and back to Jakarta


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 48 of 51


Appendix 6 Summary of Non-Conformity Report (NCR)

A. Major Non-Conformities (NC)

Major NC:

A certificate of conformance with the RSPO Criteria cannot be issued while any major non-conformities are outstanding.

Major nonconformities raised during surveillance assessments must be addressed within 60 days, or the certificate will be suspended.

Major nonconformities not addressed within a further 60 days will result in the certificate being withdrawn.

NCR No.

Criterion No

NCR Correction Root Cause Corrective Action Conclusion

1. NCR-NL-01

2.1 MJ 1 K3 expert for electrical engineering certificates of Mr. Taufik, Mr.Suwiknya, and Mr. Hasan Basri Rajaguguk were not available. This does not meet the Decree of Directorate General industrial Relations and Labor Inspection Number: KEP.311/BW/2002.

Mr. Taufik has been attended K3 expert for electrical engineering training conducted on 22 to 30 April 2013,.

For Mr. Suwiknya and Hasan Basri will be included in the next period of training

Lack of K3 expert for electrical engineering training by relevant agencies or other training institutions K3 (Public Training).

Provide K3 expert for electrical engineering training program to all electrician in estates gradually.

Monitoring the realization of Training Program for electrician.

Accepted and verified.

2. NCR-NL-04

4.6 MJ 3 Not all sprayers and mixing workers of restricted pesticides have been trained by trainers appointed by Pesticide Commissioner as per required in Agricultural Ministry Decision (Kepmentan) No. 949/Kpts/TP 270/12/98 year 1998, regarding Restricted Pesticide article 5, only 35 out of 42 spraying and mixing workers have been trained.

Listing all restricted use pesticides sprayers.

Applied for restricted use pesticide handling training to Sygenta and agreed that the training was held in July 2, 2013.

Sprayers who do not have the certificate are not allowed to handle restricited use pesticide.

Do not have a list of all sprayers for restricted pesticides.

Existing sprayers who do not have the certificate will not be allowed to handle restricted pesticides while new members will be sent for related training immediately.



Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 49 of 51


3. NCR-NL-05

4.6 MJ 4 Waste Control Procedures for empty pesticide containers SOC/PSM/4.11 were not based on the applicable regulations, namely Regulation 61/2006. There are no guarantees to ensure the washed pesticide containers under controlled will not be misused.

Handling of empty pesticide containers have been categorized into 2 groups: reuse-able and non-reuse-able.

Pesticide containers that are reuse-able will be appropriately rinsed with the triple rise method and used in accordance with the required procedure.

Pesticides that are categorized as reuse will be rinsed (triple rise method) and can be re-used in appropriate use as in procedure.

Handling of empty pesticide containers in the waste control procedures are less detailed.

Waste control procedures have been revised to define more details about the handling of pesticides containers waste.

Recording control system of pesticide containers waste have been improved to ensure that the control is done correctly.


4. NCR-NL-07

5.3 MJ 2 Clothes / aprons of sprayers employees were washed at employees’s homes.

Aprons and other PPE for the sprayers have been washed in the pesticides mixing tank in Division office.

Ex-water from laundry process of apron / PPE collected and reused for mixing pesticides.

Lack of awareness of washing apron / PPE in appropriate manner .

• Facilities for mixing pesticides in Division Office was not utilized.

Awareness of washing apron / PPE in appropriate manner has been disseminated.

•Facilities for mixing pesticides in Division office has beeni used to wash aprons / PPE.

Accepted and Verified.


Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 50 of 51


B. Minor Non-Conformities (NC)

Minor NCR: Minor nonconformities will be raised to major if they are not addressed by the following surveillance assessment

NCR No.

Criterion No

NCR Correction Root Cause Corrective Action Conclusion

5.NCR-NL-02

4.3 MN 2

Several blocks in the Division II and Division I often inundated during flood / tide, water gate in Division II were not functioning optimally and the water level in the watergate had never been measured using piezometer, this is not in accordance with the Water Management in Lowland (SOC-KB/IK/06).

Open non conformity until next audit (SA I -2014).

6.NCR-NL-03

4.4 MN 1

Watering plants in nurseries area was not performed consistently based on data from the previous day rainfall (<10 mm), it was not in accordance with Work Instructions Nurseries Palm Oil (SOC-KKS/IK/01) dated January 1, 2011.

Open non conformity until next audit (SA I -2014)

7.NCR-NL-06

4.7 MN 6

Agrochemical mixer worker, Mr. Junaidi did not wear appropriate apron type H2 as per required in “PPE Regulation Procedure” No. SOC/PSM/4.21 1

st Ed., Rev

02 dated Oct 1, 2010.

Heat resistant apron and glove were not available on Boiler working station as it



Audit Report

Form Title

Revision No.

Effective Date

Page

: FRSPO-TNI-05

: 2

: 25.11.2013

: 51 of 51


was required in “Procedure of PPE Regulation” No. SOC/PSM/4.21 1

st Ed., Rev

02 dated Oct 1, 2010.

EFB applicator workers did not wear boots and gloves as required by related working instruction.are

Guard rail in boiler area was not in good condition, fallen apart during high winds.

8.NCR-NL-08

6.1 MN 1

Social Impact Assesment result which was stated in UKL-UPL Monitoring Report of 2012 was too general. Only described the result in qualitative way without presenting the significant data that can strengthen the result. For example, for job opportunity aspect, it was concluded that the number of hired worker. Moreover, the records of monitoring activities were not available.


9.NCR-NL-09

6.5 MN 2

Based on interview result to daily worker (BHL) on field assessment, it was found that no standard PPEs and working tools provided for daily worker.
