RSPO PRINCIPLES & CRITERIA CERTIFICATION REPORT Public ... · PDF fileRSPO PRINCIPLES & CRITERIA CERTIFICATION REPORT Public Summary ... is assisting Tani Maju to implement the RSPO

SGS RSPO

(Principles & Criteria: Independent

Smallholder)

Doc. Number: GP 7003A

Doc. Version date: 01 April 2013

Page: 1 of 46

RSPO PRINCIPLES & CRITERIA CERTIFICATION REPORT

Public Summary Information

Project Number: 4180-ID/JKT Certificate No.: SGS-RSPO/PM-MY14/01429

Validity Period: 28-05-2014 to 27-05-2019

Report Ref. No.: N.A RSPO Membership

No.: 1-0141-13-000-00

Client Name: Koperasi Tani Maju Website: N.A

Scope: KUD Tani Maju is an independent group of smallholders numbering 45, with each owning 2 ha planted to oil palm.

Type of Certificate

Holder: Independent Smallholder Group Certification

Number of

Smallholder: 45

Total Certified Area

(Ha): 90

Annual CPO

Produced (MT): 461.13

Annual CPK

Produced (MT): 113.35

Address:

Street and number:

Town/City

State/Country

Zip/Postal code

Country

Head Office

Jalan Desa Burlian Makmur - Desa Dawas. Desa DAWAS Kecamatan

KELUANG Kabupaten Musi Banyuasin Sumatera Selatan 30754

Indonesia

Palembang

Indonesia 30754

Contact Person:

Mr. Yontano Maros/ Yunita Widiastuti

Jalan Desa Burlian Makmur - Desa Dawas. Desa

DAWAS Kecamatan

KELUANG Kabupaten Musi Banyuasin Sumatera

Selatan 30754

Indonesia

Palembang

Indonesia 30754

Email: [email protected]/ [email protected]

Country: Indonesia

Total FFB Produced

(MT):

2,267.09

End of Public Summary

mailto:[email protected]/

mailto:[email protected]

GP 7003A Page 2 of 46

TABLE OF CONTENTS

SUMMARY ............................................................................................................................................................... 3

List of Abbreviation ................................................................................................................................................ 5

1. scope of certification assessment ......................................................................................................... 6

1.1 National Interpretation/Standard Used ...................................................................................................... 6

1.2 Certification Scope .................................................................................................................................... 6

1.3 Location and Maps .................................................................................................................................... 6

1.4 Description of Independent Smallholder as FFB producer ..................................................................... 11

1.5 Date of Planting and Cycle ..................................................................................................................... 12

1.6 Other Certification Held ........................................................................................................................... 12

1.7 Organizational Information and Contact Person ..................................................................................... 13

1.8 Area of Plantation ................................................................................................................................... 13

1.9 Date Certificate Issued and Scope of Certificate .................................................................................... 14

2. Assessment Process ............................................................................................................................. 14

2.1 Certification Body .................................................................................................................................... 14

2.2 Assessment Methodology, Programme, Site Visits ................................................................................ 14

2.3 Qualification of Lead Assessor and Assessment Team.......................................................................... 15

2.4 Stakeholder Consultation and List of Stakeholders Contacted ............................................................... 16

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

3.1 Group Certification .................................................................................................................................. 17

3.2 Principles & Criteria ................................................................................................................................ 26

3.3 Corrective Action Request ...................................................................................................................... 40

3.4 Noteworthy Positive & Negative Observation ......................................................................................... 40

a. Group Manager is capable and has very strong knowledge for manage the independent smallholders.40

b. The independent smallholder.................................................................................................................. 41

3.5 Status of Non-Conformities Previously Identified .................................................................................... 41

3.6 Issues Raised by Stakeholders and Findings ......................................................................................... 41

4. Acknowledgement of Organization Internal Responsibility .............................................................. 41

4.1 Date of Next Surveillance Visit ................................................................................................................ 41

4.2 Acknowledgement of Internal Responsibility and Formal Sign-off Assessment Findings ....................... 41

APPENDIX A: CORRECTIVE ACTION REQUEST & OBSERVATION ................................................................ 43

APPENDIX B: NON-CONFORMITIES PREVIOUSLY IDENTIFIED ..................................................................... 45

APPENDIX C: LIST OF STAKEHOLDERS CONTACTED.................................................................................... 46

LIST OF TABLES

Table 1: Independent Smallholder Supply Base GPS Location .......................................................................... 6

Table 2: Total Smallholder and Planted Area Ha .............................................................................................. 11

Table 3: Actual FFB production for FY 2012 and estimated FFB for FY2013 .................................................. 11

Table 4: Actual FFB production, CPO, PK and PKO for FY 2012 .................................................................... 11

Table 4: Estimated FFB production, CPO, PK and PKO for FY 2013 .............................................................. 11

Table 4: Planting Age Profiles for all Supply Base Estates ............................................................................... 12


Table 7: Area Statement of the Supplying Estates ............................................................................................ 13

Table 6: Assessment Program .......................................................................................................................... 15

Table 7: Auditors Profile ..................................................................................................................................... 16

LIST OF FIGURES

Figure 1: Location Map for KUD Tani Maju ......................................................................................................... 7

Figure 2: Location Map for KUD Tani Maju (Desa Dawas and Desa Bumi Kencana) ....................................... 8

Figure 3: Area for KUD Tani Maju-Desa Bumi Kencana (14 Ha with 7 kaplings) .............................................. 9

Figure 4: Area for KUD Tani Maju-Desa Dawas (76 Ha with 38 kaplings) ....................................................... 10

Figure 5: Planting Age Profiles for the Tani Maju .............................................................................................. 12

SUMMARY

SGS has conducted main assessment of Tani Maju KUD operation comprising group of Independent

Smallholders Members, Group Management/Manager and FFB supply chain. Tani Maju KUD has been

established to manage an independent group of smallholders numbering 45, with each owning 2 ha planted

to oil palm. Tani Maju KUD is located in the Musi Banyuasin District of South Sumatra, Indonesia. PT Hindoli

is assisting Tani Maju to implement the RSPO P&C, with the aim of achieving RSPO Certification and will

then purchase the smallholders FFB for processing in one of the Hindoli oil mills.


BASIC EVALUATION INFORMATION

MAIN EVALUATION

Evaluation Dates: 1 October - 3 October 2013

Team Leader/Team: James Ong/Hoo Boon Han/Faisal Jaafar/ Dwi Yana Hendrata

Affiliate Project Manager: Date:

Report approved by: Haye Semail Date: 15 Jan 2014

Certification approved by: Kenny Looi Date: 28 May 2014

Database logged by: Othman Shahziela Date: 28 May 2014

SURVEILLANCE 1

Evaluation Dates:

Team Leader/Team:


Report reviewed & approved by: Date:

Certification approved by: Date:

Database logged by: Date:

SURVEILLANCE 2

Evaluation Dates:

Team Leader/Team:





SURVEILLANCE 3

Evaluation Dates:

Team Leader/Team:





SURVEILLANCE 4

Evaluation Dates:

Team Leader/Team:






SGS services are rendered in accordance with the applicable SGS General Conditions of Service accessible at http://www.sgs.com/en/Terms-and-Conditions.aspx

SGS Malaysia (RSPO Program) Systems and Services Certification Division

Unit 10-1, 10th Floor, Bangunan Malaysian RE. No. 17, Lorong Dungun, Damansara Height 50490 Kuala Lumpur, MALAYSIA.

Contact Programme Manager at t. +6 (03)5121 2320 www.sgs.my

LIST OF ABBREVIATION

Short Form Meanings

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

ASEAN Association of South East Asia Nations

B3 Bahan Beracun dan Berbahaya (hazardous waste)

BOD Biological Oxygen Demand

BPN Badan Pertanahan Nasional/Nasional Land Agency

CPO Crude Palm Oil

CBD Convention on Biodiversity

EFB Empty Fruit Bunches

FFB Fresh Fruit Bunches

HCV High Conservation Value

HGU Hak Guna Usaha (Land Use Permit)

IPM Integrated Pest Management

IUP Izin Usaha Perkebunan (Plantation Operation Licence)

K3 Kesehatan dan Keselamatan Kerja (Occupational Health and Safety)

LC Land Clearing

OER Oil Extraction Rate

PK Palm Kernel

POM Palm Oil Mill

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

SOP Standard Operating Procedure

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

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

ASEAN Association of South East Asia Nations

B3 Bahan Beracun dan Berbahaya (hazardous waste)

BOD Biological Oxygen Demand

CPO Crude Palm Oil

CBD Convention on Biodiversity

EFB Empty Fruit Bunches

FFB Fresh Fruit Bunches


1. SCOPE OF CERTIFICATION ASSESSMENT

1.1 National Interpretation/Standard Used

The operations of the mill and their supply based of FFB were assessed against the of RSPO

Group Certification Standard July 2010, Roundtable on Sustainable Palm Oil (RSPO),

Principles and Criteria (P&C) – Indonesia National Interpretation for Independent

Smallholder (July 2010) and Supply Chain Certification Standard dated 25 November

2011.

1.2 Certification Scope

The scope of certification covers KUD Tani Maju with total 45 farmers, with each owning 2 ha

planted to oil pal, registered as group member and group manager who comply with the group

rules, requirements of the RSPO Standard for Group Certification and Sustainable palm oil

production.

1.3 Location and Maps

KUD Tani Maju is located in Musi Banyuasin District of South Sumatra, Indonesia (Figure 1).

More detailed information on the smallholders’ location and layouts is shown in Figures 2, 3

and 4. The GPS locations of the supply base are shown in Table 1.

Tani Maju KUD has been established to manage an independent group of smallholders

numbering 45, with each owning 2 ha planted to oil palm. Total 45 “kaplings” distributed into 2

different regions which are: Desa Dawas (total 38 kaplings with 76 ha) and Desa Bumi Kencana

(total 7 kaplings with 14 ha).

Table 1: Independent Smallholder Supply Base GPS Location

Independent

Smallholder Longitude Latitude

KUD Tani Maju E: 376869,51 S: 9726789,32






Figure 1: Location Map for KUD Tani Maju






Figure 2: Location Map for KUD Tani Maju (Desa Dawas and Desa Bumi Kencana)


Figure 3: Area for KUD Tani Maju-Desa Bumi Kencana (14 Ha with 7 kaplings)


Figure 4: Area for KUD Tani Maju-Desa Dawas (76 Ha with 38 kaplings)






1.4 Description of Independent Smallholder as FFB producer

The FFB is sourced from plantation which is directly managed by KUD Tani Maju. The OER rate

is 20.34%. The budgeted crop yields from each estate are listed in Table 2 below. The

smallholder numbers and estimated FFB, CPO & PK production for 2012 and 2013 are listed as

below too:

Table 2: Total Smallholder and Planted Area Ha

Group Mature Ha Immature Ha Total

Tani Maju 88 2 90ha

Table 3: Actual FFB production for FY 2012 and estimated FFB for FY2013

Group

Number Name

Planting

Year

Total Area

Ha

Actual FFB

Production

2012 (Ton)

Estimated

FFB

Production

2013 (Ton)

1 Koperasi Tani Maju 2005 28 685.49 856.87

2 Koperasi Tani Maju 2006 48 1,343.50 1,679.37



5 Koperasi Tani Maju 2010 2 - -

Table 4: Actual FFB production, CPO, PK and PKO for FY 2012

Source (Farmer

Subgroup)

2012 (Actual

FFB)

2012 (Actual

CPO)

2012 (Actual

PK)

2012 (Actual

PKO)

1 2,267.09 461.13 113.35 46.47

Table 5: Estimated FFB production, CPO, PK and PKO for FY 2013

Source (Farmer

Subgroup)

2013

(Budget

FFB)

2013 (Budget

CPO)

2013

(Budget PK)

2013 (Budget

PKO)

1 2,833.85 576.41 141.69 58.09


1.5 Date of Planting and Cycle

The KUD Tani Maju own estates were planted between 2005 and 2010. The palms ware

considered matured when approaching four years after planting and productive until the age of

25 years. The age profiles for all the estates are simplified in Table 4 below. Please refer to the

figure 5 for the planting age profiles at different kaplings.

Table 6: Planting Age Profiles for all Supply Base Estates

Group

Number Name Planting Year

Total Area Ha Number of

Farmers

1 Koperasi Tani

Maju

2005, 2006, 2008,

2009, 2010

2 45

Figure 5: Planting Age Profiles for the Tani Maju


STRUKTUR ORGANISASI KOPERASI TANI MAJU

BADAN HUKUM : 0231/ BH / VII.3/ X / 2012

RAPAT ANGGOTA TAHUNAN (RAT)

KETUA UMUM SUNARDI

KETUA II Bid. Adm & Keuangan

SUKAMDI

KETUA I Bid. Kebun CIPTO HADI

KETUA III Bid. Usaha & Bisnis

WARJONO

KETUA IV Bid. SDM & Pelatihan

NIKMAT FAJAR SHODIK

BADAN PENGAWAS

Bid Produksi

Bid. Transportasi

Bid. Infrasturktur

Administrasi

Keuangan

Unit Simpan Pinjam (USP)

Waserda

ANGGOTA

Pengembangan SDM

Pelatihan

Ketua : Rianto Anggota : 1. Margono

Anggota : 2. Dibyo Wibowo

GROUP MANAGER

1.6 Other Certification Held

No other certification held.

1.7 Organizational Information and Contact Person

The company contact person and the group organization chart details are as follows:

Name: Yontano Maros

Designation: Group Manager

Address:

Jalan Desa Burlian Makmur - Desa

Dawas. Desa DAWAS Kecamatan

KELUANG Kabupaten Musi Banyuasin

Sumatera Selatan 30754

Indonesia

Palembang

Indonesia 30754

Contact No.: 021-574-6168

Email address: [email protected]

1.8 Area of Plantation

The areas of supplying estates for this operating unit are listed in Table 7.

Details of production area (mature/immature) are also listed.

Table 7: Area Statement of the Supplying Estates

Group Mature Ha Immature Ha Total

Tani Maju 88 2 90ha


1.9 Date Certificate Issued and Scope of Certificate

The certificate issue date is the date of RSPO approval of this assessment report. This

certification scope is the independent group of smallholders numbering 45, with each owning 2

ha planted to oil palm.

2. ASSESSMENT PROCESS

2.1 Certification Body

Founded in 1878, the SGS Group is the world’s largest auditing, inspection, testing and

verification organization. Truly global and benefiting from unique international network of more

than 1180 offices, 321 laboratories and 50’000 full time staff, the SGS Group is able to provide

its international clientele with a comprehensive range of services in more than 145 countries.

SGS has no manufacturing, trading or financial interests which could compromise its

independence. Its guarantee of independence, its reputation for professionalism, integrity and

impartiality, as well as it remarkable international network, place the SGS Group in a unique

position.

The RSPO Programme is the SGS Group’s RSPO Certification Programme internationally

accredited by the RSPO Executive Board to carry out oil palm plantation and supply chain

certification/verification and accreditation for global RSPO certification.

2.2 Assessment Methodology, Programme, Site Visits

The assessment was conducted in 2-3 October 2013 audit days and involving 7 of KUD Tani

Maju. The audit covers documentation review, internal procedures, management system, field

inspection as well as identification of any significant issues for both environment or social

issues. A sample of stakeholders was consulted during the assessment to get their feedback on

the management doing.

The assessment was conducted based on sample in which regulated under RSPO Certification

Requirement for Group Certification (2010). Under the requirement, size of samples was based

on formula (0.8/y) x (z); where y is total number of independent group member and where z is

the multiplier defined by the risk assessment.

For the purpose of sampling audit, risk assessment of the group member and group manager

was carried out prior to the certification assessment through the documentation. The risk

assessment will based on factors i.e. geographically as well as socioeconomically, there are no

current replanting activities, there are no new members, the group is well established. SGS

audit team concluded that the risk is medium 1.2 as this is the main assessment.

During the site assessment, the sample size of Tani Maju shall be determined by the formula

(0.8/45) x (1.2) = 7 individual smallholder plot with 2 ha each. The assessment involved field

visits to a sample of seven (7) smallholders’ oil palm blocks, interviews of smallholders and

KUD staff and review of documents.

The methodology for objective evidence collection included physical site inspection, observation

of tasks and processes, interview with workers, families and stakeholders, documentation

review and monitoring data.

The assessment program is included as shown in Table 5 below.


Table 8: Assessment Program

Date Time Auditor Area / Department / Process / Function

1 Oct ,2013 1700 JO, HBH, MFJ Arrive from Kuala Lumpur – Palembang

1700 DYH Arrive from Jakarta – Palembang

2 Oct, 2013 0800 All Opening meeting – KUD Tani Maju

Presentation & audit confirmation

Interview Group Manager

Kapling 22, 24 & 26: Field Operations ( Fertiliser, Harvesting , Manuring), Safety

HCV and Buffer zone

Boundary

Storage – fertiliser ,chemical

1230 Lunch

Interview stakeholders ( internal )

Kapling 29: Field Operations

Worker representatives

Document Review – procedures, OSH, payslip , meetings, training

1730 End Day 1

3 Oct, 2013 0830 Travelling to KUD Tani Maju

Kapling 31, 34 & 35: Continue Inspection of smallholders’ field Operations (Fertiliser, Harvesting , Manuring), Safety

HCV and Buffer zone

Boundary , OSH

Storage – fertiliser ,chemical ,

Interview workers

1230 Lunch

Document Review

Worker representatives

External Stakeholders

Document Review – procedures, OSH, payslip , meetings, training

1430

1730 End Day 2

2.3 Qualification of Lead Assessor and Assessment Team

SGS Malaysia Sdn Bhd holds copies of educational qualifications, certificates and audit logs for

each of the audit team members. SGS has evaluated the qualifications and experience of each

audit team member and has registered the following designations for conducting RSPO

Assessment. Summary of auditors’ educational background and experience are listed in Table

6 below.


Table 9: Auditors Profile

Evaluation Team Notes

Team Leader James S H Ong, a Bachelor of Agriculture Science holder and

agronomist in SGS (M) Sdn Bhd. He has many years working

experience in agriculture sector in Malaysia and has been working in

estates as well in the agrochemical and fertilizer industry. He is well

versed with agrochemical and fertilizer applications. Has undergone

ISO 14001 and RSPO Lead Auditor training and involved in a number

of audits on oil palm plantations.

Auditor 1 –

Plantation

Mohd Faisal Jaafar is an auditor of Roundtable on Sustainable Palm

Oil (RSPO). He also has been involved in a number of Forest

Management (FM) certification. In addition, he is a Lead Auditor for

RSPO, trained by RSPO for auditing against RSPO P&C and involved

in a number of plantation assessments and audit of palm oil mill.

Auditor 2 –

Environment and

Supply Chain

Hoo Boon Han is the SGS SEAP Program Coordinator, Bio Fuels

Sustainability. He has successfully completed the RSPO Lead auditor

training course for both P& C as well as the Supply Chain. He

experienced in environmental monitoring & audit, carbon accounting &

reduction, wastewater treatment, waste management and sustainable

development experience across Southeast Asia.

Auditor 3- Social Dwi Yana Hendrata, a Bachelor of Agriculture Science holder and SSC

Auditor in SGS ID (Indonesia). He has 7 years working experience in

oil palm plantation sector in Indonesia. He has undergone ISO 9001

and ISCC and ISPO Lead Auditor training and involved in a number of

audits on oil palm plantations in Indonesia.

2.4 Stakeholder Consultation and List of Stakeholders Contacted

A wide range of stakeholders were contacted 4 weeks before the planned evaluation to inform

them of the evaluation and ask for their views on relevant palm oil sustainability issues. These

included environmental interest groups, local government agencies and forestry authorities,

social groups and workers’ unions etc.

Stakeholder consultation took place in the form of meetings and interviews. Meetings with

village head, government agencies and NGOs were held in their respective premises within and

near the KUD Tani Maju estates. In all the interviews and meetings the purpose of the audit was

clarified at the outset followed by an evaluation of the relationship between the stakeholder and

the company before discussions proceeded in accordance with relevant RSPO principles,

criteria and indicators.

Issues discussed were related land ownership, environmental and social performance, legal

and agricultural issues. No negative comments or complaints received as the size of

independent smallholder is a very small. Further details please refer to 3.6.






3. ASSESSMENT FINDINGS

3.1 Group Certification

Requirement 1: Group requirements. Producers can form or join a group for group certification. The

organization and its member shall demonstrate their ability to meet the RSPO Standard for Group Certification

and the relevant RSPO Standard for Sustainable Palm Oil Production.

Criterion 1.1: Group Elements

1.1.1 The group shall be managed by a central administration (i.e. The Group Manager), which is responsible for ensuring the group’s compliance with the applicable standards and manages the Group Management Documentation.

Major

Findings In compliance: Yes: X No:

Objective

evidence: Tani Maju is an Independent Smallholder Group formed and trained to be certifiable standard with support from PT Hindoli. The group is managed by a central administration at cooperative level which assisted by a group manager, Yontano Maros who are currently employed as a Plasma Operation Manager at PT.Hindoli and now has additional assignment to be “Group Manager” for Tani Maju. Organization chart for the Tani Maju is made available during onsite audit, the ICS committee include: Group Managers, Inspector Board and Internal auditor. Records of minutes meeting dated 24 August 2012 regarding establishment of appointed personal for ICS is available. The group manager ensures that the group meet the requirements of RSPO standard for Group Certification.

1.1.2 The group shall consist of group members who have formally joined the group. Major


Objective

evidence: Flow chart of registration is for new members, including application form, pre inspection and

checking on appropriate documents of farmers and internal approval are available in SOP

003/TM/XI/2012. Procedure has stated Registration of each member shall be agreed during panel committee of internal approval. Once accepted to join the group, the members sign an agreement with the group manager to follow the group rules and meet the RSPO requirement for group certification. Review on record of farmer member of KUD Tani Maju only formal group members are joined within the group with total 45 farmers registered as group member.

1.1.3

The Group Management Documentation shall include the documenting and monitoring of all the individual group members for membership status, production process, and other relevant aspects to ensure compliance with the relevant RSPO Standard for Sustainable Oil Palm Production and the RSPO Group Certification Requirements.

Minor


Objective

evidence: Group manager established a system to check membership status, production process, and RSPO requirements of principles and criteria for each farmer member (i.e. record of Checklist “Pemeriksaan Internal” Internal Inspection). Checklist consists of Land information and status, planting year, palm seedling information, commitment to comply with RSPO requirements, and checklist of compliance with RSPO P&C. New procedure has also been established by group manager as guidance to monitor all individual group membership status and risk evaluation i.e. SOP 004/TM/XI/2012 (“Monitoring dan Pemantauan Kwalitas Grup Sertifikasi”).Procedures and how to check/ensure farmer comply the RSPO’s requirements.

1.1.4 The Group Manager shall specify in the Group Management Documentation the maximum number of members that can be supported by the management system and the human resource and technical capacities of the Group Manager.

Major


Objective

evidence:

Group manager specified maximum capacity of the prospective members in one group is maximum 30 individual farmers or equivalent to hectarages 60 Ha. And total number of group that can be supported by management system and technical capacity under Tani Maju is maximum 20 groups or equivalent to 1200 Ha. The relevant policy on this requirements provided by smallholder group is “KTM002/IX/2012”; KEBIJAKAN KOPERASI TANI MAJU TENTANG JUMLAH KEANGGOTAAN KELOMPOK.

Criterion 1.2: Compliance with standards

1.2.1 All group members that are formal members of the group seeking RSPO certification under group certification shall comply with the required relevant RSPO

Major


Standard for Sustainable Oil Palm Production.


Objective

evidence: Monitoring on formal group member under group certification is scheduled every 3 month. Latest records shown internal inspection for each individual formal member was done on August 2013. Group Manager has produced internal audit program to monitor all member within the group to comply with relevant RSPO Standard for Sustainable Oil Palm Production and this internal audit schedule bi-annually.

1.2.2

Group managers may run a programme to support prospective members in achieving compliance with RSPO requirements. Where such a programme is in place, there must be robust mechanisms in place to ensure that neither the prospective members nor the Group Manager makes any claim suggesting they are RSPO certified. Once the prospective member is in compliance with the RSPO standard they shall be formally included as a member of the certified group. Until RSPO compliance is achieved, the FFB production from prospective member sites will not count towards the total certified production of the group.

Major


Objective

evidence: Group manager plans a program to support formal group member and prospective members in achieving compliance with RSPO requirements. (Record: “Rencana dan Realisasi Kerja Trainning Tahun 2013” Work Programme of 2013). Program covers identification of prospective member, training related to ICS, RSPO P&C requirements, gap assessment in compliance with RSPO requirements, regular internal inspection, registration of prospective member, internal assessment, internal approval committee meeting, formal agreement, and regular counselling on the field. Group Manager set a rule “SOP 003/TM/XI/2012 Penerimaan / Pemberhentian anggota” that for any prospective members to be formally included as a member of the group after passing “3 months probation periods”, during probation, the prospective members should comply with the RSPO standard. Evaluation through initial internal assessment will be conducted by group manager before accepting into the group. The FFB production from prospective member sites is not included to the total certified production of the group.

1.2.3

Formal members of the Group shall sign an agreement with the Group Manager committing to achieving compliance with the relevant RSPO standard for sustainable oil palm production. The Group Manager and each member shall keep copies of the agreement.

Minor


Objective

evidence: Minute Meeting record on 24 August 2012 show a valid evidence that all 45 formal group members have agreement with the Group Manager for a commitment to achieve compliance to RSPO requirements for group certification ( KTM001/Surat kesepakatan). A copy of the agreement is kept at the group manager office, KUD Tani Maju office and a set of copy is distributed to each group members. Internal assessment is carried out to ensure that group members adhere to the internal requirement on group objective and policies.

1.2.4 All the individual group members shall adhere to and show evidence that the internal requirements, as set out in the systems, programmes or policies adopted by the Group Manager are met.

Major


Objective

evidence: Group Manager ensures that group members continuously committed to improve their compliance with relevant RSPO requirements by adhering to group rules and system. Intensive training to all applicable and relevant procedures toward all RSPO principle and criteria requirements conducted regularly for all group members. Annual Training program plan is available “Rencana Kerja Sosialisasi/Training Program”. Group manager is committed to implement socialization of the program consistently.

1.2.5 The group manager shall comply with the requirements of the RSPO Standard for Group Certification.

Major


Objective

evidence: Group manager shows improvement on the understanding of compliance to RSPO group certification standard including retention time of record keeping for each ICS document. Routine internal inspection for each farmer has been provided by group manager including all training program plans, job description for ICs committee and all SOP required to comply with all RSPO standards.

1.2.6 There shall be evidence to show that formal group members, individually and collectively, continually strive to maintain their compliance with the relevant RSPO Standard for Sustainable Oil Palm Production.

Minor



Objective

evidence: Group manager and its farmer members show effort to maintain compliance with RSPO standard continuously. 29 procedures related to Group Certification standard have been produced to support compliances with RSPO standard requirements including program to conduct routine inspection and corrective action against non compliance.

Procedures such as :

SOP 001 Prosedur Penanaman Kacangan

SOP 002 Prosedur Penanaman Benefecial Plant

SOP 003 Prosedur Panen

SOP 004 Prosedur Marking BBC

Criterion 1.3: Group Manager

The Group Manager of the Group shall demonstrate its capacity for managing group certification and performance assessment against the RSPO Standard for Group Certification.

1.3.1 The Group Manager shall be either a legal entity or an individual acting as a legal entity.

Major


Objective

evidence: Group manager was appointed during member meeting on 24 August 2012; Minutes of meeting record is available. The appointed group manager is an individual acting as legal entity. The detail responsible for group manager is provided “Surat Kuasa – dated 24 August 2012” regards to Appointment of Group Manager. The group manager and the group management committee are elected by members and have the capacity to manage the group certification through the formation of the group committee. Decision making is through meeting with members.

1.3.2 If the Group Manager is not an individual, there shall be a description of the general structure of the Group Manager detailing the positions and responsibilities of all personnel clearly identified.

Major


Objective

evidence: See indicator 1.3.1 and also refer to the organizational chart.

1.3.3 The Group Manager and/or their personnel shall be able to communicate in a language understood by all group members (in both spoken and written form).

Minor


Objective

evidence: Group manager is PT Hindoli employee, who has been work for company for 16 years, local

people and able to communicate fluently within members in both spoken and written.

1.3.4

The Group Manager and/or their personnel shall be able to demonstrate knowledge of the requirements of oil palm production, the RSPO Standard for Sustainable Oil Palm Production, the RSPO Standard for Group Certification, and internal group procedures and policies.

Major


Objective

evidence: The Group Manager and ICS personnel are able to demonstrate knowledge of the requirements of RSPO Standard for Sustainable Oil Palm Production, RSPO Standard for Group Certification, and internal group procedures and policies as stated in the sustainability manual. It is also noted that there is no conflict of interest in the group management structure and they are elected by the group members.

1.3.5 The Group Manager and/or their personnel shall not have any conflict of interest likely to affect their capacity to meet the requirements for Group Managers and shall be able to provide evidence of this.

Major


Objective

evidence: Minutes of Meeting dated 24 August 2013 and “surat Kuasa” with regards to “Pengangkatan Grup Manager” (Appointment of Group Manager) stated competencies requirement to be appointed as group manager which include conflict of interest declaration. The Group is also provided evidence of competency analysis for recent appointed group manager where all requirements are met; group manager is not part of KUD Tani Maju members or part of the group farmers.

1.3.6 The Group Manager shall demonstrate sufficient resources – i.e. human, financial, Minor


physical and other relevant resources – to enable effective and impartial technical and administrative management of Group Certification.


Objective

evidence:

Based on interview with group manager, field visit and observation to KUD office, audit team seen the sufficient resources in term of human capital, financial, buildings and other infrastructure such as agriculture tools, emergency response equipment, vehicles and office utensils.

1.3.7 The Group Manager shall have the capacity to control, monitor and evaluate all members pertaining to their compliance to the RSPO requirements including communicating with them and visiting them at the required frequencies.

Major


Objective

evidence: It is also noted during the audit, with interaction and interview with Group Manager, audit team convinced the appointed group manager is mentally and physically capable. The group manager is capable to control, monitor and evaluate all members pertaining to their compliance to the RSPO requirements including communicating with them and visiting them at the required frequencies.

1.3.8

The Group Manager shall have a documented system which sets out its mission and objectives, policies and procedures for operational management and decision making in order to demonstrate ability to manage the group in a systematic and effective manner.

Major


Objective

evidence: Group manager has set out mission, objective and group’s policies. There are about 29 procedures and policies have been produced covered all relevant activities to ICS, RSPO standard for group certification, and other RSPO requirements

1.3.9 There shall be clear policies and procedures for communication between the Group Manager and group members.

Minor


Objective

evidence: SOP Komunikasi No 29/SOP/Kop.TM/IX/2013 is available and has been communicated within group member. Interview with some sampled farmers show understanding of internal communication policy established by group manager.

1.3.10

The group manager shall ensure all formal and prospective members understand the relevant RSPO Standards. This may include the development of a strategic plan on how group certification shall be achieved for prospective members, and the identification, definition and/or provision of training needs and/or communication strategies relevant to the implementation of the applicable RSPO Standard for Sustainable Oil Palm Production and the RSPO Standard for Group Certification. This can be provided directly by the Group Manager, an externally run training course or other means of provision of training or expertise.

Major


Objective

evidence: In relevant to indicator 1.2.2, Group manager has established a yearly program for prospective and formal members to develop strategic plan including the training need for its member. Record: Rencana dan Realisasi Kerja Training Tahun 2013.

1.3.11

The Group Manager shall ensure that if any group marketing system is developed and managed for the group, this is mutually fair and transparent to enable the securing of raw materials or trading of the group members‟ collective produce, or setting-up of an equivalent arrangement. The group marketing system shall include; rules for purchasing and selling within the group, rules for claims of RSPO certified, dissemination of markets, and price information and related logistics (i.e. transportation to mill etc).

Major


Objective

evidence: Procedure for purchasing and selling within the group has been established and the mechanism to ensure certified and non certified products provided in SOP 006/TM/XI/2012 with regards to “ Penjualan dan Pemisahan TBS bersertifikasi ”. Both procedures are detailing the segregation

mechanism for transport delivery of certified and non certified FFB.

1.3.12 The Group Manager shall ensure that the total of all sales and claims of RSPO certified FFB production from group members does not exceed the total certified FFB production of the group in its entirety.

Minor



Objective

evidence:

The Group Manager and ICS administrator aware that that the total of all sales and claims of RSPO certified FFB production from group members shall not exceed the total certified FFB production of the group in its entirety. This can be further verified during the surveillance assessment when the group already start producing certified FFB. Once certified the group will be producing segregated FFB and the group is aware that they will be able to trade through GreenPalm. The ICS documentation able to track the FFB production to the group members based on the information on the sales invoice and weighbridge document issues by the palm oil mill whereby the group member number is indicated on these documents by the mill. The group has past FFB production and sales record for the year 2012 which obtained from the palm oil mill and verified with the group members records.

Criterion 2.1: Group Management Documentation structure and content

The Group Manager shall have its operational structure, policies and procedures, and basic

information on individual group members documented. The system verifies whether operations within

the group comply with the RSPO Standard for Group Certification Requirement and the relevant RSPO

Standard for Sustainable Oil Palm Production.

2.1.1 The Group Manager shall have an operating structure that defines group management documentation (i.e. internal control systems), decision-making and responsibilities within the group.

Major


Objective

evidence: The Group Manager has a Manual Book (i.e. Buku Panduan ICS) and procedures which contain operating structure, internal control system documents, decision making process and responsibility of the personnel involve in the group management. It is indicated in the manual and relevant procedure (Kontrol Dokumen SOP/002/TM/I/2012) that all the group management documents/ICS documents are retained for at least for 3 years throughout the validity of the RSPO certificate.

2.1.2 All group records shall be retained for at least 5 years. Major


Objective

evidence: Interview with the Group manager and ICS administrator reveal that they are aware of the document retention period.

2.1.3

The Group Manager shall have documented membership requirements for the participation of individual members in the group. This shall include: 2.1.3.1 Requirements and procedures for joining the group. 2.1.3.2 Requirements and procedures for leaving the group. 2.1.3.3 Procedures for incorporating a remedial system for member non compliance. 2.1.3.4 Procedures for expulsion from the group.

Minor


Objective

evidence:

The documented membership requirements for the participation of individual members in the group included in the Manual Book and procedures such as: Membership requirement and procedure to join the group SOP No 003/TM/XI/2012 with regards to “Prosedur Penerimaan dan pemberhentian Anggota”. Group manager stated that new procedure for member registration is also applicable for prospective member to join the group.

Requirements and procedures for leaving the group: Procedure for leaving the group SOP 003/TM/XI/2012 with regards of “Keluar atau Mengundurkan Diri dari Keanggotaan”

Procedures for incorporating a remedial system for member non compliance, stated in Manual Book (Anggaran Dasar Koperasi Tani Maju). Procedure covers requirement and penalty to group member whom are not complied with internal policies and procedures.

Procedure for expulsion from the group, SOP 003/TM/XI/2012“Pemberhentian anggota grup sertifikasi”. Member who are not followed and complied with internal procedures and policies of the group will be removed from the membership.

2.1.4

There shall be a group-level operation manual that includes the following: 2.1.4.1 Internal assessment protocols. 2.1.4.2 Policies and procedures for accepting / removing members. 2.1.4.3 Policies and procedures for applying corrective action requests (CARs) to group members for non-compliance with the relevant RSPO standards. 2.1.4.4 Procedures for communicating corrective action requests (CARs). 2.1.4.5 Clear description of the process to fulfill any correction action requests

Major


(CARs) issued internally by the Group Manager or by the certification body including timelines and the implications if any of the CARs are not complied with. 2.1.4.6 Policies and procedures for handling complaints, appeals, corrective action requests (CARs), and group member performance assessment.

2.1.4.7 Policies and procedures for group monitoring, including carrying out and updating group risk assessment and annual surveillance of group members.


Objective

evidence:

Group Manager established several new procedures for revision of current Manual (Buku Pedoman ICS). Decision Letter regarding revision of Manual Book stated in Letter ref No.010/DOK/SK.KPI/APSSA/2013. Group manager is also produced an update policy on time commencement of new SOPs and status of recent formal members prior to revision of procedures related to Group Certification standard including procedure to accept and expelled members. (Record: Decision letter of group manager No.025/DOK/SOP/APSSA/2013)

There is also a group level operation manual and procedures that includes the following: Procedure for internal assessment protocol and entry requirement stated in SOP No. 012/DOK/SOP/APSSA/2013 with regards “Program Kerja Inspeksi Internal”. For sampling method procedure is detailed in SOP No.014/DOK/SOP/APSSA/2013 with regards “Penentuan Sample Inspeksi Kebun Anggota Grup Sertifikasi”

Procedure for accepting / removing members. see indicator 2.1.3

Procedure for issuing Corrective Action Request (CAR) to members with non compliance during internal assessment and external assessment including communicating CAR and timeline to respond to the CAR, stated in SOP 005/TM/XI/2012

Procedures for handling complaints, appeals, corrective action requests (CARs), and group member performance assessment, stated in SOP 029/Kop -TM/IX/2013 with regards to“Komunikasi Internal Group Sertifikasi”

Procedures for group monitoring and internal assessment, including carrying out and updating group risk assessment and annual surveillance of group members based on the RSPO sampling formula stated in SOP No.011/DOK/SOP/APSSA/2013 with regards Monitoring dan Pemantauan kwalitas dan Profesionalisme Group Sertifikasi

2.1.5

The Group Manager shall develop and maintain a database of group members included within the Group Scheme. This includes the information below as a minimum for each member: 2.1.5.1 A copy of each group member’s application form to the group with relevant information for each member that is updated regularly, i.e. name of producer, address, contact details, type of land ownership, size of plantation area, location, etc.

2.1.5.2 Total annual production and production per unit area (hectare) for previous years, from at least one year prior to joining the group, and the estimated production for the current year.

2.1.5.3 Results from the last internal and external assessments showing performance levels to the relevant RSPO Standard for Sustainable Oil Palm Production, including dates these were carried out, any plans for implemented improvement and corrective action requests (CARs) raised and closed out for each group member. 2.1.5.4 The date of group membership acceptance and date of departure or expulsion from the group if relevant.

2.1.5.5 Maps of the plantation area for each group member. This can be in the form of individual maps or a collective map covering all group members.

Major


Objective

evidence:

Group Manager and ICS staff has developed a database of the group members in term of Database “Daftar Anggota”, updated February 2013. This includes the information below as a minimum for each member: A copy of each group member’s application form include member information, membership number, address, contact details, application and agreement details, land ownership data and related documents, size of plots, map of the plot location, FFB production records (previous year and projected), fertilizer application and other details of farm management. Review on 45 farmer members of Tani Maju confirmed those are completed.

Result of last internal assessment is available for each group member conducted on 2012. These are done during initial registration when the farmers joined the group. Sample record: “Checklist Pemeriksaan Internal” Checklist of Internal assessment. For routine inspection for 2013, a programme was provided.


Date of acceptance of group member started on since the agreement letter between group manager and each group member was signed. The information is provided in Database Anggota Group Sertifikasi updated 2013.

Maps of the farmer plot for each group member incorporated into farmer group maps are available. Records are kept in ICS documentation. Record provided in “Database Anggota Group Sertifikasi 2013”

2.1.6

A summary of all the data on land use (in hectares) shall be kept and regularly updated covering the entire group that includes at least the following: 2.1.6.1 Total overall land area for each group member. 2.1.6.2 Total oil palm planted area for each group member. 2.1.6.3 Total RSPO certified production area for each group member. 2.1.6.4 Other crop production areas (i.e. non oil palm) for each group member if any. 2.1.6.5 Total undeveloped area or areas set aside for any particular reason (i.e. conservation, customary, identified HCV etc) for each group member, if any. 2.1.6.6 Total area with infrastructure for each group member, if any.

Major


Objective

evidence: Summary of all the data on land use (in hectares) for each formal member is available in “Database Anggota Group Sertifikasi updated 2013” Database of Group Certification member 2013. The information cover location maps for each farmer plot, total area, total planted area, Total RSPO certified production area, and other related information. There is no other crop production and infrastructure areas within farmer plot. All farmer plot areas are planted with oil palm. Most of smallholders are living in the village nearby the plots area.

Criterion 2.2: Internal assessment system

2.2.1

Prospective members intending to join the group to be included under group certification shall only be allowed to become formal members of the group after an initial compliance assessment for entry by the Group Manager. This initial assessment will determine that all group members who formally join the group with the intention of being included under group certification, are able fulfill the group membership requirements and are able to meet the relevant RSPO Standard for Sustainable Oil Palm Production.

Minor


Objective

evidence: Group manager has established new procedure for member registration including recruitment of prospective members. Review on group documentation, all records related to member registration now is completed. There are complete sets of record of Internal assessment checklist for 45 farmer members of Tani Maju, the record of Internal assessment checklist are fully completed.

2.2.2

The Group Manager shall implement a regular and ongoing internal assessment programme for all current group members that includes at least the following: 2.2.2.1 Internal assessments shall be documented and these documents maintained for 5 years. 2.2.2.2 Regular (at least annual) internal assessment visits to a sample of group members to confirm continued compliance with all the requirements of the relevant RSPO Standard for Sustainable Oil Palm Production and RSPO Standard for Group Certification. All members shall be monitored at least once during the period of validity of the group certificate (normally 5 years). 2.2.2.3 The Group Manager shall identify the relevant RSPO Standard for Sustainable Oil Palm Production that is appropriate for each group member. It is the performance against this standard that is assessed at each internal assessment. 2.2.2.4 The sample size for internal assessments shall be based on a risk assessment of the group members, where a higher risk requires a higher sample size. 2.2.2.3 The Group Manager shall identify the relevant RSPO Standard for Sustainable Oil Palm Production that is appropriate for each group member. It is the performance against this standard that is assessed at each internal assessment. 2.2.2.4 The sample size for internal assessments shall be based on a risk assessment of the group members, where a higher risk requires a higher sample size. 2.2.2.5 The sample size shall be determined by the formula (0.8/y) x (z), where z is the multiplier defined by the risk assessment. Low risk = multiplier of 1, medium risk = multiplier of 1.2, high risk = multiplier of 1.4 (see Table 1).

Major


2.2.2.6 The group shall use a minimum sample to be visited annually for internal assessment of (0.8/y), where y is the number of group members, and where selection of group members is based on random selection techniques. 2.2.2.7 The Group Manager shall ensure that different group members are visited in each annual internal assessment to those that have been selected for assessment by the certification body, unless there are circumstances which require a revisit of the same members (e.g. pending corrective action requests (CARs), complaints received from stakeholders, risk factors etc). 2.2.2.8 Additional internal assessments shall be scheduled when potential problems arise or when the Group Manager receives information from stakeholders about alleged non-conformities of the relevant RSPO Standard for Sustainable Oil Palm Production by group members.


Objective

evidence: There are also complete sets of Internal approval committee letter for each farmer member of 45 individual farmers. Internal assessment program has produced on February 2013 for implementation of 2013 2017. Developed procedure related to internal assessment programme is also in place (i.e. SOP No.012/DOK/DOP/APSSA/2013 with regards “Penilaian Inspeksi internal” Internal Inspection; and SOP No. 029/DOK/SOP/APSSA/2013 with regards to Sampling size methodology). Tani Maju has provided the action plan for internal assessment. Program for regular internal assessment has been developed and first internal assessment as per program has been conducted. The internal assessment training conducted 16 February 2013. Risk factor, sample size, methodology and result evaluation has been determined and recorded. This was confirmed in line with Group Certification Standard and internal procedure. Tani Maju sent the corrective action records on 20 February 2013. Internal assessment started in 17 18 February 2013 with 18 samples from all available group members. The result of internal assessment recorded under "form checklist pemeriksaan internal" Form of Internal Inspection Checklist and "Notulen Kegiatan Tim Penilai" Meeting Minutes of Internal Inspection Team.

2.2.3 Non-conformities identified by the Group Manager shall be resolved internally according to a documented system of applying corrective action requests (CARs).

Major


Objective

evidence: Corrective action list is available on the results of periodic internal audits and certification audit to identify non compliance and evidence of corrective action thereupon. Program for regular internal assessment has been developed and first internal assessment as per program has been conducted. see indicator 2.2.2.

Criterion 3: Chain of Custody (Supply Chain Module: Segregation)

The Group Manager shall have a system in place to enable the trading of RSPO certified Fresh Fruit Bunches (FFB) produced from the group.

3.1 The group manager shall document and implement a system for the tracking and tracing of FFB produced by the group members, and intended to be sold as RSPO certified FFB.

Major


Objective

evidence:

New procedure has been established SOP 006/TM/XI/2012 with regards “Prosedur Penjualan dan Pemisahan TBS bersertifikat” (Procedure of FFB sales and purchasing). The Group Manager and ICS staff monitors and register the sales of FFB from the group members to the palm oil mill. The group manager receives the FFB sales summary from the group member as well as from the palm oil mill with the member number indicated in the related documents such as Delivery Note and weight bridge ticket. This facilitates is traceable by the Group Manager and to ensure that the total sales volume and claimed are from the certified group members. The Chain of Custody of the Independent Smallholder Group members stops at the palm oil mill and collection point. The palm oil mill takes over the chain of custody from the Independent Smallholders. All FFB sales and purchasing are recorded in “Rekap Produksi” Production Recapitulation Book.

3.2

There shall be a collective group procedure for the sale of all certified FFB originating from the plantations of group members that is agreed by the group members and the Group Manager and is designed to ensure that non-certified FFB are not sold as RSPO certified FFB. This shall be contained in any group marketing system that is developed for the group, and shall follow one of the supply chain models as per the RSPO Supply Chain Certification Systems, i.e.

Major


Identity Preserved, Segregation or Mass Balance.


Objective

evidence: Please refer to indicator 3.1

3.3

The group manager shall ensure that all invoices for sales of RSPO certified FFB originating from the group are issued with the required information as per the adopted supply chain model requirements within Annex 6 of the RSPO Supply Chain Certification Systems document – November 2009.

Minor


Objective

evidence:

During this initial assessment there was no any FFB purchased by the group Manager or the Group members. Sales invoice indicated with group member’s identification number, name of the group member, palm oil mill’s name and address, date and quantity. Group manager established a procedure related segregation of certified products and non certified i.e.SOP 006/TM/XI/2012 with regards to “ Penjualan dan Pemisahan TBS Bersertifikasi ” (Segregation on Certified and non certified FFB). Procedure stated RSPO Segregation certified will be stamped in sales documentation once RSPO certificate is received.

3.4

The physical transporting of RSPO certified FFB originating from the plantations of group members shall be done either directly by the group (i.e. through own transportation), or via sub-contracted intermediaries. For intermediaries the requirements as outlined in 3.7 shall also apply.

Major


Objective

evidence: Smallholders Group is sending their FFB by own transportation (sub-contractor FFB transporter) to the mill. No intermediaries are employed. Most of FFB transporters are among smallholders member itself which has a truck to carry FFB to the mill. Contract for each transporter is available.

3.5

All sales of FFB originating from the plantations of group members shall be documented. This shall include: 3.5.1 Invoices and receipts (purchase and sale). 3.5.2 Information on transport. 3.5.3 The relevant group members‟ group identification number.

3.5.4 Description of the product sold (i.e. RSPO certified or not), product volume and destination.

Major


Objective

evidence:

All sales of FFB originating from the farmer plots are recorded under Delivery Order (weight bridge ticket) and FFB transport ticket (Surat Pengantar Buah) include invoice and receipt, transport information, farmer identification number (farmer sub group), description of product, and product volume. No intermediaries are existed. Smallholder group is using own transportation to carry FFB to the mill. Please see indicator 3.4 too.

Evidence of receive crops and delivery crops were verified.

3.6 The Group Manager shall maintain copies of all relevant documentation and records of group product transactions for a period of 5 years.

Major


Objective

evidence: Tani Maju and Group Manager maintain copies of all relevant documentation and records of group product transactions for a period of 5 years as stated in SOP 002/TM/XI/2012 with regards to Document Control.

3.7

If an intermediary exists in the supply chain from the group to the mill that wants to be included within the group certification control rather than obtain their own supply chain certification, the intermediary shall be identified by the Group Manager. The Group Manager shall have a contract with the intermediary to fulfill the RSPO Standard for Group Certification and agree to be assessed on an annual basis by the Group Manager as well as in certification assessments. It is the responsibility of the Group Manager to ensure that the intermediary shall comply with the following conditions: 3.7.1 There shall be a contract between the intermediary and the Group Manager. 3.7.2 The intermediary shall have complete purchasing and selling records.

3.7.3 The intermediary shall have RSPO supply chain systems in place to separate certified from non-certified materials through any of the RSPO supply chain options (i.e. Identity Preserved, Segregation or Mass Balance).

Minor



Objective

evidence: No intermediary apply for FFB deliver from Tani Maju to Mill, all FFB will be a direct selling once RSPO certificate is granted for Tani Maju.

3.2 Principles & Criteria

As outlined, objective evidence was obtained separately for each of the RSPO Indicators and criterion

for the mills and estates. The results for each indicator from each of the operational areas were

evaluated to provide an assessment of conformity. A statement is provided for each of the RSPO

indicators in order to support the findings of the assessment team.

There is 1 Major Non-conformities and 2 Minor Non-conformities identified during this assessment.

Some areas identified with potential areas for improvement has leaded into 3 Observations raised.

Details for each Non-conformities and observations are given in Appendix C. Major Non-conformities

has been closed out within the period of 60 days after the assessment. Minor Non-compliances and

Observations will be followed up during the next Annual Surveillance Audit which is scheduled to be

conducted within the period of twelve months after the RSPO approval of Main Assessment.

Principle 1: Commitment to Transparency

Criterion 1.1: Oil palm growers and millers provide adequate information to other stakeholders on environmental, social and legal issues relevant to RSPO Criteria, in appropriate language & forms to allow for effective participation in decision making.

1.1.1 Requests of information and responses given to stakeholders are recorded and maintained for a period determined by existing regulations and to serve its purpose

Major


Objective

evidence: Record of request and information request is kept and recorded within the communication record book. Observed that all records are kept on a case-by-case basis.

Observed that there is no evidence of information request made by external stakeholders for the past 2 years. The only information request evidenced is by the internal stakeholders i.e. field workers and group smallholders.

The auditor also observed that all request are kept and has been response within two weeks after the request has been made.

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

1.2.1

Information and responses provided covers documents (that are publicly available) which shall be in accordance with current laws and regulations as follows:

Legal: Evidence of legal ownership of the land or land-use rights (certificate) authorized agency and there are no conflict in the land.

Social: Smallholder’s organisation has documents of organisational and social activities.

Environment: Smallholder’s organisation owns record on impact identification and plan of managing efforts.

Major


Objective

evidence: All relevant stakeholders can access to the company’s legal, environmental and social documents upon request as follows:

- Land titles/use rights

- Plantation operation permit

- Environmental aspect and impact identification;

- environmental management plan for identified impact

- Social programs

- Complaint & dispute resolution procedures

- Grievance mechanism

- Waste Disposal (Prosedur Penambungan Limbah Bekas Kemasan Pestisida (doc no: 015/SOP/KOP-1/TM/1/2012 dated 05/01/2012)


- Waste Management (doc no: 016/SOP/KOP-1/TM/1/2012 dated 05/01/2012)

1.2.2 Environment : Farmers’ institution keeps an impact identification and effort to manage environment record

Minor


Objective

evidence: Documented environmental aspect and impact identification entitled Identifikasi & Evaluasi Aspek Dampak Lingkungan (Doc No. 026/SOP/Kop.TM/V/2012) dated 08 May 2012 is available that specifies the identified environmental aspect and impact, mitigation measures in mitigating the impact with a guidance from the specific local laws and legislation.

Principle 2: Compliance with applicable laws and regulations

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

2.1.1 Evidence of compliance with essential regulations relevant and related to oil palm cultivation.

Major


Objective

evidence: There is no evidence of non-compliance to the essential regulations relevant and related to oil palm cultivation. Currently, all operations within the smallholders is done legally. The following legal documents are evidenced and verified:

Surat Hak Milik (Tanda Bukti Hak) (Certificate of Ownership) (Land Titles) for every members of smallholders as follows:

o No. 78 issued by National Land Bureau serial no. 04-09-09-04-00078 dated 16 November 2007;






o No. 87 issued by National Land Bureau serial no. 04-09-09-04-00085 dated 16 November 2007.

Out of 45 smallholders, there are 11 has yet to obtain the land titles. To substitute the document, the Surat Pengakuan Hak (Declaration of Ownership) for member smallholders is used detailing the following:

o Declaration that they owned the land since the establishment of plantation;

o Declaration on location and total hectarage of owned land;

o Declaration that the land is obtained legally without any pending land conflicts;

o Declaration that the land is managed on their own by planting oil palm since its establishment;

o Acknowledgement and authorization from local governmental agency i.e. Kecamatan and Kepala Desa.

o Sampled of the Declaration of Ownership are as follows:

No. 593/077/BK/III/2006 dated 13 March 2006;






Evidence of agreement signed between the previous owner of the land with the member smallholders are as follows:

o No. 593/82/DS.DW/09/2003 dated 05 September 2003;


o No. 593/06/DS.DW/VI/2003 dated 30 June 2003;

o No. 593/05/DS.DW/VI/2003 dated 30 June 2003; and

o No. 593/01/DS.DW/VI/2003 dated 17 June 2003.

According to the SOP update regulation (doc no: 022/SOP/KOP-1/TM/1/2013 dated 14/01/2013), Koperasi Tani Maju will work together with their partner PT Hindoli in updating the laws and regulation through the website: www.legalitas.org. The group manager has a list of register law and regulation to be complied.

2.1.2 Evidence of smallholder organization to make adjustment to regulation change. Major


Objective

evidence: All adjustment to the regulation change and any update of the regulations is conducted and implemented with a guidance from the SOP document entitled Procedure for Update on Regulation (SOP No. 022/SOP/KOP-TM/I/2013) dated 14 January 2013 that specifies that the smallholder will update on any changes of laws through the local authorized website i.e. www.legalitas.org. All update is conducted periodically.

2.1.1 Smallholder organisation has a mechanism to guarantee that law and regulation are implemented

Minor


Objective

evidence: Each of the laws and regulations as per listed in the Daftar Undang-Undang and Peraturan is found to be implemented through the extraction of relevant section of each of the listed laws that is related to the operation of the oil palm. For example, the regulation pertaining to the establishment and management of identified environmental impact is conducted in line with the local environmental laws i.e. Undang-Undang No. 23 Tahun 1997 tentang Pengelolaan Lingkungan Hidup. Observed that the identified aspect and impacts is listed within the SOP document Identifikasi & Evaluasi Aspek Dampak Lingkungan (Doc No. 026/SOP/Kop.TM/V/2012) dated 08 May 2012.

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

2.2.1 Smallholders are able to show legal ownership of the land or land-use rights. Major


Objective

evidence: Evidence of ownership and land use rights is available as per in Indicator 2.1.1 above as follows:

Surat Hak Milik (Tanda Bukti Hak) (Certificate of Ownership) (Land Titles) for every members of smallholders as follows:







o No. 87 issued by National Land Bureau serial no. 04-09-09-04-00085 dated 16 November

http://www.legalitas.org/


2007.

Out of 45 smallholders, there are 11 has yet to obtain the land titles. To substitute the document, the Surat Pengakuan Hak (Declaration of Ownership) for member smallholders is used detailing the following:

o Declaration that they owned the land since the establishment of plantation;

o Declaration on location and total hectarage of owned land;

o Declaration that the land is obtained legally without any pending land conflicts;

o Declaration that the land is managed on their own by planting oil palm since its establishment;

o Acknowledgement and authorization from local governmental agency i.e. Kecamatan and Kepala Desa.

o Sampled of the Declaration of Ownership are as follows:






Evidence of agreement signed between the previous owner of the land with the member smallholders are as follows:






2.2.1 Where there are or have been disputes, records of resolution or progress towards resolution are available. Minor


Objective

evidence: There are no evidence of land disputes within the smallholders. All land are obtained legally from the previous owners. Evidence of agreement signed between the previous owner of the land with the member smallholders are as follows:






2.2.2 Evidence on land borders are marked clearly and maintained. Minor

Findings In compliance: Yes: No: X

Objective

evidence: Observation 1: Kapling 16 was visited and it was found that besides the peg using PVC pole with a red top that was identified, the next peg along the boundary was unable to be located.

Criterion 2.3: 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.

2.3.1

Where other’s customary or legally owned lands have been obtained, records of process and/or negotiated agreements between previous customary land owners and the smallholders are available an complemented with a sketch in appropriate scale.

Major



Objective

evidence:

All land is obtained legally from the previous owners. Observed that the negotiation was made for an agreed compensation and land transfer document was prepared and witnessed by the village head.

Evidence of agreement signed between the previous owner of the land with the member smallholders are complied and kept within the “Bukti Pembelian Lahan” document as follows:






Principle 3: Commitment to long-term economic and financial viability

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

3.1.1 A documented operational work plan for a minimum duration of one year. Major


Objective

evidence: The smallholder has prepared a documented operational work plan at annual basis. Observed that the operational plan for 2013 is available specifies all relevant operation within the smallholder’s management as follows:

Spraying;

Manuring;

Pruning;

Weeding;

Harvesting;

Integrated Pest Management; and

Analysis – both foliar and soil.

As for 2014, according to the head of the smallholder, the plan is to be established during the last quarter of 2013 i.e. October-December. Total income and the total cost spending in different activities clearly indicated in the spread sheet. The group manager will able to monitor that cost and quality are maintained in the operational work plan.

3.1.1 A plan for replanting preparation is available. Minor


Objective

evidence: There is no replanting for the next 5 years as the smallholders consist of young palm i.e. 3-8 years old oil palm.

Principle 4: Use of appropriate best practices by growers and millers

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

4.1.1

A documented procedure or manual of Good Agriculture Practices (GAP) in key activities (use of superior seeds, fertilizer application, IPM techniques and harvesting) is available.

Major


Objective

evidence: SOP file is available and the smallholder obtained guidance from PT Hindoli representative Mr Yontano Maros, Group Manager KUD


4.1.1 Evidences of implemented procedures are available. Minor


Objective

evidence: Evidence of implementation were applied in the field as the interview with the harvester confirmed that the standard of number of loose fruit as an indicator for ripeness were similar to the SOP.

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

4.2.1 Smallholders organisation keeps the fertilizer application record. Minor


Objective

evidence: Small holder keeps the fertilizer application records for each type of fertilizer applied in individual files – Kartu Applikasi Pupuk.

4.2.2 Smallholder’s organisation keeps the earlier year productivity record. Minor


Objective

evidence: Smallholder’s organisation keeps the earlier year productivity record since 2011 in both graph as well as in hardcopy.

Criterion 4.3: Operating procedures are appropriately documented and consistently implemented and monitored.

4.3.1 Evidence of terracing or other conservation efforts for plantings on sloping terrains at or before replanting

Minor


Objective

evidence: Area has slight undulating slopes but generally flat. As a result , no requirement for terraces to be used during land preparation

Smallholder implements conservation efforts to reduce erosion through the practice of their frond stack against the direction of the slopes.

4.3.2 Evidence of ground cover crops establishment during immature plantings Minor


Objective

evidence:

There are about six hectares of immature palms in kavlings 45, 36, and 37 that were planted in 2009 and 2010 and some cover crop is planted during establishment.

The oil palm seedlings were obtained from PPKS IOPRI, an approved seedling supplier.

4.3.3 Proof of drainage system construction on peat and low lands Minor


Objective

evidence: No peat in this area and low land drainage are maintained to reduce flooding.

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

4.4.1 Smallholder organisation keeps record on pesticide and fertilizer application Major


Objective

evidence: Records of application of pesticide and fertilizer are kept in the office under the individual fertilizer type files:

a) Kartu applikasi Ally

b) Kartu applikasi Roundup

c) Kartu applikasi Pupuk – KCL, Dolomite, Phonska,

4.4.1 Evidence of efforts to prevent erosion and maintain natural water resources Minor


Objective

evidence: The water management plan is available (doc no: 031/SOP/KOP-1/TM/05/2014 dated 02/05/2014) which describe the action taken to protect the surface and ground water. Water analysis will be sampled and tested every 6 months. One of the water sampling result dated 14 Mei 2014 (ref: 01 Lab MSL/V/2014) indicated that the river water are generally complied to the parameters such as


PH, turbidity, iron and etc.

Minor 01: Streams although were marked ‘x’ to indicate buffer zone and no spraying should be done however some spray activities were seen on the palms along the streams in Kapling 11 and 12.

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

4.5.1 Records of monitoring and control of pests and diseases. Major

Findings In compliance: Yes: x No:

Objective

evidence: Recording of census of rat damage has just been initiated under the guidance of PT Hindoli representative Mr Yontano Maros, Group manager KUD. Latest census done on 7/8/13

4.5.1 Smallholders should be able to demonstrate adequate knowledge on IPM and are able to implement it.

Minor


Objective

evidence: Records show that PT Hindoli IPM trainer Mr Sungkowo has conducted training on 18 April 2013 on IPM.

Observation 02: However their management representatives have not attended to demonstrate adequate knowledge on IPM and are able to implement it.

Criterion 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 categorised as World Health Organisation Type 1A or 1B, or are listed by the Stockholm or Rotterdam Conventions, growers are actively seeking to identify alternatives, and this is documented.

4.6.1 Smallholder organisation conduct a training on how to use agrochemicals in general for its members

Major


Objective

evidence: PT Hindoli Farmer Development team conducted training on how to use agrochemicals in general for its members and mandore on 23/7/13.

The training is known as ‘Prosedur Pengunaan Bahan Kimia & Penanganan’.

Another procedure known as “ Prosedur Kalibrasi Sprayer” (doc: 029/SOP/KOP/TM-05/2014 dated 02/05/2014 is available which describe:

right nozzle (such as Nozzle in black color no2)

spray drift (count the flow rate and volume)

spray quality

run off

4.6.1 Evidence on the use of registered agrochemicals permitted by the Minister of Agriculture.

Minor


Objective

evidence: The smallholder uses only 2 herbcide products namely Ally and Roundup which are registered with the Minister of Agriculture.

4.6.2 Evidence on the use of agrochemicals according to species, dosage, application method and time.

Minor


Objective

evidence: There is evidence on the use of agrochemicals according to species, dosage, application method and time.

The premixer , mandore Mr Suharno is familiar with the dosage and their information is obtained from PT Hindoli.

The dosage rates are posted at the premix/ storage shed.

4.6.3 Evidence of implementing safe procedure (Program Kesehatan dan Keselamatan Kerja (K3)) in applying agrochemicals.

Minor



Objective

evidence: Adequate PPE is used when applying agrochemicals .As there were no spraying activities we were unable to verify it’s usage. Nevertheless in the storage shed, the auditors were shown the availability of the PPEs such as of apron, gloves, mask, goggles, boots, and hats.

There are 7 sprayers and all male workers; they all went for health screening 1x per year in nearest government clinic.

4.6.4 Evidence of pesticides storage and disposing pesticides container according to current regulation.

Minor


Objective

evidence: Minor 02: Storage is adequate with the presence of spill kit for accidental spillage. The floor is sealed floor, concrete walls and non-leak and proper roofing and ventilation .

However , there is still no arrangement on its disposal of the empty chemical containers since the last pre-assessment as it has accumulated for more that 3 months

4.6.5 Evidence of medication, in case of pesticides poisoning to applicator personnel. Minor

Findings In compliance: Yes: No:

Objective

evidence: Records of ‘Training K3 ‘ was given to smallholder committee members , the ‘Ketuas’, as well as the workers on F4/2/13 by PT Hindoli Trainer Mr Sungkowo on emergency as well as in cases of pesticides poisoning.

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

4.7.1 Smallholders organisation owns a policy on health and working safety Major


Objective

evidence: Major 01: The KUD has not been prepared a policy on health and work safety yet.

4.7.2 Evidence of participating in a training on safe working practices and emergency actions, procedure and handling an accident, if occurs.

Major


Objective

evidence: Training programme 2013 for the KUD Tani Maju is available, records of trainings that have been conducted. It also has records of attendances of participation by the smallholders and their workers.

Accident record is available and up to date, only one accident happen which the worker was cut by the knife and causing the minor injury. The injured worker already received the “kwitansi perobatan” or the medical claim on 17 February 2014.

4.7.1 Smallholders organisation owns a document of a risk analysis from working stages. Minor


Objective

evidence: On 28/8/13, a risk analysis was conducted for the operations within the smallholder. It includes

a) Harvesting and Loading

b) weeding

c) Manuring

d) Store management

e) Pruning

f) Transportation etc

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

4.8.1 Programme and training held for smallholder’s organisation. Major


Objective

evidence: As above, Training programme 2013 for the KUD Tani Maju is available and it also has records of attendances of participation by the smallholders and their workers. Training such weeding, spraying, zero burning and social issue etc.


Training related chemical use were conducted as below:

a. Training Kalibrasi Kap dated 09/12/2013, located at kapling 8

b. Spraying technique and the use of APD dated 09/12/2013 located at kapling 8

Principle 5: Environmental responsibility and conservation of natural resources and biodiversity

Criterion 5.1: 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.

5.1.1 Records of implementation and report on management of environmental impacts, kept at smallholder’s organisation. Minor


Objective

evidence: Environmental aspect and impact made available during onsite visit: Identifikasi dan evaluasi aspek dampak lingkungan 026/SOP/KOP-TM/V/2012.

Besides, each KUD completed environmental baseline identification report.

The identification was done by farmers’ themselves with the assistance by the schemed manager.

5.1.2 A program on practice adjustments in farmer’s plantation should be in accordance with identification result.

Minor


Objective

evidence: Each KUD completed environmental baseline identification report. In each activity such as spraying, harvesting and fertilizing which will impact the environment already recorded. Adjustment for the activities will be advised by the group manager through each KUD identification report.

Criterion 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.

5.2.1 Smallholders are able to list protected flora and fauna in their local areas. Major


Objective

evidence: A list of flora and fauna is available although it may not reflect to the actual local conditions.

In environmental baseline identification report, protected species were listed by the local community.

According to the survey “Interpretasi Nasional Prinsip dan Kriteria RSPO” for all 45 smallholders, the result indicated that no protected flora and fauna in their local areas. Each farmers list out fauna they spotted such as chicken or owl in their area which is not endangered species.

5.2.2 Smalholders could explain the procedure to handle conflict with protected species. Major


Objective

evidence: Training provided to the local community dated 14 August 2013 for creating awareness for the protected species.

Interviewed with the stakeholder and confirmed no conflict with protected species. If there is any, they will leave the wildlife undisturbed.

No hunting signboard observed onsite inspection.

5.2.1 Where protected species exist within the plantation, a dedicated person in smallholders organisation structure shall be appointed to train smallholders on conservation.

Minor


Objective

evidence: Pak N.Fajar has been appointed as the dedicated person in smallholders on conservation if there is any protected species.

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


5.3.1 Smallholders can explain measures to dispose hazardous agrochemicals and their containers in accordance to instruction labels as stated by the manufacturer.

Major


Objective

evidence: The chemical containers record available and inspection showed that they store the containers at the designated area.

Please refer to CAR 4.6.4.

5.3.2 Smallholder could explain and has evidence that point 1 has been done. Major


Objective

evidence:

Interview of smallholder indicated sufficient understanding of empty pesticide container disposal. The KUD has kept empty pesticide containers in the KUD store for disposal by PT Hindoli. Please refer to CAR 4.6.4.

5.3.1 Records of complaints from local communities related to disposal of hazardous chemicals and its resolution, if any, were kept by smallholders organisation.

Minor


Objective

evidence: Checked on the complaint log book; file “Buku Saran” and no complaints have been received due to the disposal of hazardous chemicals.

Criterion 5.4: Efficiency of energy use and use of renewable energy is maximised.

Not applicable.

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.

5.5.1

During the replanting smallholders shall be able to prove that fire was not used to prepare land and disposal of waste. Fire is only permitted in special cases which involve elimination of pest and diseases where recommendation from relevant government agencies must be in place prior to use of fire.

Major


Objective

evidence: No evidence was found during to prepare land and disposal of waste.

No replanting activities.

5.5.2 Smallholders understand emergency responses procedure against forest fires (Prosedur Tanggap Darurat Kebakaran Lahan).

Major


Objective

evidence: Emergency responses procedure (Prosedur Tanggap Darurat:014/SOP/KOP-TM/1/2012 dated 05/01/2012 is available during onsite audit.

Interview of smallholders and confirmed they are aware the location of assembly point during forest fires.

5.5.3 Smallholders’ organisation owns simple fire control equipments. Minor


Objective

evidence: Fire extinguisher observed at the office during onsite audit.

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

Not Applicable

Principle 6: Responsible consideration of employees and of individuals and communities affected by

growers and mills.

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. improvement.


6.1.1 Smallholders could explain the social impact of their plantation activity and provide constructive respond evidence against complain, if any.

Major


Objective

evidence:

The audit team has sampled ten smallholders to be randomly interview for soliciting feedback pertaining to social impact of plantation activity. Observed that a good understanding and positive feedback pertaining to social impacts of the plantation operation is evidenced. In addition, the interview conducted showed no complaints have been received in relation to smallholder estate.

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.

6.2.1 Smallholders organisation has records on communication and consultation with local communities

Major


Objective

evidence:

All input from smallholder members and other relevant stakeholders are kept and compiled within the designated book namely “Buku Saran”. All records pertaining to communication from the smallholders members and stakeholders are verified. The audit team observed that most of the suggestions are made by the members pertaining to the management of the estate. For instance on 20 January 2013, an issues raised by one smallholders voicing his concern pertaining to the lack of transparency of the management in informing the smallholder member on the income and expenses incurred for the operation of the plantation. Following to his issues, he has suggested to the management to have a summary of income and expenses incurred (in particular payment made to the workers) on a monthly basis. Based on the record, the management has positively responded by starting implementing the formulation of such summary on April 2013.

6.2.1 Smallholders organisation has records on communities’ aspiration and their responses or follow-up actions.

Minor


Objective

evidence: As described earlier, all input from smallholder members and other relevant stakeholders are kept and compiled within the designated book namely “Buku Saran”.

Observed that all request are kept and has been response within two weeks after the request has been made.

6.2.2 A dedicated person appointed in smallholders organisation responsible for transparent communication and consultation with stakeholders.

Minor


Objective

evidence: Head No. 4 i.e. Humar Resources and Development has been appointed as the community relation officer dealing and communicating with internal and external stakeholders.

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.

6.3.1 A system for complaints are in place at smallholders organisation Major


Objective

evidence: The smallholder has established a documented SOP dealing with any complaints raised by relevant stakeholders. The documented SOP entitled Prosedur Penyampaian Complain (Complaint Procedure) (SOP No. 021/SOP/KOP-TM/I/2013) dated 07 January 2013 is available specifying the mechanism to be employed should there is any complaints raised by the relevant stakeholders covering the following:

Direct Negotiation;

Arbitration using independent third party; and

Civil Court.

6.3.1 Smallholder organisation has records on complaints/ grievances, and reports on steps to address them (if any).

Minor


Objective

evidence: All complaints from smallholder members and other relevant stakeholders are kept and compiled within the designated book namely “Buku Saran”.


For instance on 20 January 2013, an issues raised by one smallholders voicing his concern pertaining to the lack of transparency of the management in informing the smallholder member on the income and expenses incurred for the operation of the plantation. Following to his issues, he has suggested to the management to have a summary of income and expenses incurred (in particular payment made to the workers) on a monthly basis. Based on the record, the management has positively responded by starting implementing the formulation of such summary on April 2013.

6.3.2 A documented process and outcome of resolution of disputes, if any Minor


Objective

evidence: There is no dispute raised as of the date of the audit.

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 stakeholders to express their views through their own representative institutions.

6.4.1 Smallholder owns an evidence on legal rights and customary rights transfer, involving community representative and related institution.

Major


Objective

evidence: Please refer to Indicator 2.2.1. Observed that all land are obtained legally from the previous owner.

Evidence of agreement signed between the previous owner of the land with the member smallholders are complied and kept within the “Bukti Pembelian Lahan” document that is the example are as follows:






6.4.1 Record of negotiation processes and/or outcome of agreed compensation are in place. Minor


Objective

evidence: Records of agreed compensation are kept in “Bukti Pembelian Lahan” that is attached together with the above agreements. All agreed compensation are found to be signed by the previous owner at the agreed rate.

6.4.2

Smallholder organisation owns an identification system and calculation of compensation payment, on legal rights and customary rights transfer involving community representative and related institution.

Minor


Objective

evidence: All land acquisition is done through legal means. Observed that the negotiation was made for an agreed compensation and land transfer document was prepared and witnessed by the village head. All records of compensation and evidence of payment is kept within the “Bukti Pembelian Lahan”.

Criterion 6.5: Any negotiations concerning compensation for loss of legal or customary rights are dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions.

6.5.1 Proof of wage payments to workers at least legal or minimum industry standards Major


Objective

evidence: As reflected in the Directive issued by the Governor of South Sumatera no. 825/kpts/DISNAKERTRANS/2013, the minimum wages for workers for South Sumatera regions is Rp 1,600,000. Verification on several payslips indicating that the wages are above the prescribed minimum wage. Samples of payslips verified are as follows:

Month Name Work field


August 2013 Wahidin Harvester

Mad Sholeh

Yatno

Jaenuri

Sucipto

Suharno Sprayer

San Basri

Roni

Muhijar

Wahidin

April Sutar Manuring

Suroto

Muhtamar

Zakaria

Cipto Hadi

6.5.1 A work contract is in place for permanent employee, if any Minor


Objective

evidence: There is no permanent worker is employed by the smallholder. All workers are employed on contract basis. Observed the smallholders’ management has established a documented employment contract for employment of field workers. Sample of employment contract i.e. Employment Contract with Sprayers that was signed with the sprayers team dated 03 January 2012 is evidenced specifying the following:

Rate of wages to be paid on a daily basis;

Working time;

Safety and health – application of PPE;

Coordination of scheduled waste; and

Requirement for medical surveillance.

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.

This criterion is not applied to Independent Smallholders as stated in National Interpretation RSPO Principles &Criiteria for Sustainable Palm Oil Production, Independent Smallholders, Republic of Indonesia. July 2010.

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 programmes. Children are not exposed to hazardous working conditions.

6.7.1 Smallholders can show that child labour is not used, in accordance with the regulation.

Major


Objective

evidence: Employment of labor is guided by the documented Circular from the local government i.e. Keputusan Menteri Tenaga Kerja dan Transmigrasi Republik Indonesia (No. KEP.115/MEN/VII/2004) dated 13 January 2003 that specifies there is child labor allowed in the operation and that the minimum employment age shall be 19 years.

Verification within the workers employment record showed no evidence of children employed for work within the plantation’s operation.

Criterion 6.8: The employer shall not engage in or support discrimination based on race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliation, or age.


6.8.1 No unsolved claims on the discrimination of employees. Major


Objective

evidence: No evidence during audit according to discrimination.

The KUD has a written policy “Kebijakan Diskriminasi dan Pelecehan” signed by Sunardi (Ketua Umum) on Jan 26

th, 2012

6.8.1 Smallholder organisation owns a human resource policy on equal rights. Minor


Objective

evidence: The KUD has a human resources policy “Kebijakan dan Aturan Kelompok Tani Maju” signed by Sunardi (Ketua Umum) on Jan 26

th, 2012

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.

6.9.1 Smallholders organisation has established documents that advise its members against sexual harassments and forms of violence against women and to protect their reproductive rights and implement it

Major


Objective

evidence: The KUD has a written policy “Kebijakan Diskriminasi dan Pelecehan” signed by Sunardi (Ketua Umum) on Jan 26

th, 2012

Criterion 6.10: Scheme managers deal fairly and transparently with smallholders and other local business

6.10.1 Smallholder organisation have a policy to collaborate business with its members or other local party fairly and transparently.

Major


Objective

evidence: The KUD hasn’t a policy according to “collaborate business with its members or other local party fairly and transparently”, however the KUD has appointed Mr. Fajar as Ketua Biang IV Bisnis, who has a responsibilities to looking business opportunities and improve savings and loan business.

6.10.2 Records of FFB and planting equipments price determination mechanism. Major


Objective

evidence: Observation 03: KUD has elected Ketua Bidang II Keuangan who responsible on FFB pricing mechanism. However the KUD have to establish according to price determination mechanism which every members of KUD can accepted.

6.10.1 Smallholder’s organisation has documented contracts with their business partners, if any.

Minor

Findings In compliance: Yes: No:

Objective

evidence: Not applicable. No business partners.

6.10.2 Evidence of FFB payment to smallholder organisation members Minor


Objective

evidence: Until this time FFB payment done for every three months, e.g. “Pendapatan Kebun Dawas periode April – Juni 2013” for 34 farmers e.g on behalf Mr. Suharno = 2,000,000 IDR

Criterion 6.11: Scheme manager contribute to local sustainable development wherever appropriate.

6.11.1 Records of smallholder’s organisation and/or individual smallholders’ contribution to the local development.

Minor


Objective

evidence: The KUD involved on the local development, e.g. the KUD involved on road maintenance which are they agreed to pay 25,000 IDR / ha for road maintenance. Recorded on “Notulen Rapat” May 19

th, 2013

Principle 7: Responsible development of new plantings


No new planting during onsite audit.

Principle 8: Commitment to Continuous Improvement in Key Areas of Activity

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

8.1.1 Smallholder / smallholder organisation prepare action plan for continuous improvements in:

Maintenance and harvesting palm oil,

Integrated Pest Management (IPM),

Maintain soil fertility,

Replanting techniques (e.g zero burning land preparation),

Control and training on smallholder palm oil plantation management,

Minimizing negative impact on environment such as reduce waste, pollution, or gas emision,

Minimizing negative social impact.

Major


Objective

evidence: The KUD has prepared a budget ‘ Rencana Anggaran pendapatan belanja Koperasi “ Tani Maju” tahun 2013 to allocating expenditure for the farm improvement :

a) Crop Maintenance / Perawatan Kebun

b) Fertilizer

c) Infrastructure

d) Salary

The ‘Kelompok Swadaya Tani Maju ‘ has documented it’s continuos improvement plan under the topic : Objective , Target and Program.

The last document was dated May 2012

8.1.1 Evidence that smallholder’s plantation receives consultation from extension service agencies and / or smallholder organisation

Minor


Objective

evidence: The smallholder’s plantation receives consultation from

a) PT Hindoli - technical services , safety and health, and management

Records of the extension are found in the training programme as well as the leaf sampling and the fertilizer recommendation.

PT Hindoli has also dedicated a manager, Mr Yontano Maros, Group manager KUD to oversee the programme.

3.3 Corrective Action Request

There are total of 1 Major and 2 Minor were raised. Please refer to the Appendix A for the

details findings and relevant correction actions have been taken.

3.4 Noteworthy Positive & Negative Observation

a. Group Manager is capable and has very strong knowledge for managing the independent

smallholders.


b. The independent smallholder willing to learn or follow the advice from their partnering mill

which is PT Hindoli and the smallholders demonstrate their high commitment towards the

certification.

3.5 Status of Non-Conformities Previously Identified

This is the main assessment as no Non-Conformities Previously Identified.

3.6 Issues Raised by Stakeholders and Findings

A list of stakeholders contacted is included as Appendix C. No comments receive during the

public notification. Stakeholders did not provide any feedback in writing regarding the KUD Tani

Maju environmental and social performance. During onsite audit, all interviewed stakeholders

had positive comments about Tani Maju. There were no legal or land disputes issues

highlighted.

Interview with the Group Manager and smallholders indicated that they are in the good

relationship of cooperation in achieving the RSPO certification. PT Hindoli also provides

consultation and advice to help the smallholder during the process of certification.

The villagers provide good feedback about that road repairing with the length 5 km near Desa

Dawas Kecamatan which requested during stakeholder meeting dated 19 Mei 2013.

Appendix C contains list of stakeholder contacted such as supplier, villager, workers etc.

4. ACKNOWLEDGEMENT OF ORGANIZATION INTERNAL RESPONSIBILITY

4.1 Date of Next Surveillance Visit

The next surveillance audit is planned before on Oct 2014

4.2 Acknowledgement of Internal Responsibility and Formal Sign-off Assessment Findings

SGS Malaysia acknowledges and confirms acceptance of the Report contents and including the

assessment findings. SGS Malaysia accepts the responsibility for addressing the opportunities

of improvement detailed in this report.

Signed on behalf of Yunita Widiastuti Signed on behalf of SGS Malaysia Sdn Bhd



APPENDIX A: CORRECTIVE ACTION REQUEST & OBSERVATION

CAR # Indicator CAR Detail

Major 01

4.7.1

Date

Recorded>

3 Oct

2013

Due

Date>

2 January

2014

Date

Closed> 28 Dec 2013

Non-Conformance:

Smallholders organisation owns a policy on health and working safety

Objective Evidence:

The KUD has not been prepared a policy on health and work safety yet.

Close-out evidence:

The health and work safety policy was prepared and signed by Chief Plasma Manager,

Group Manager and Ketua Umum.

Minor 01

4.4.1

Date

Recorded>

3 Oct

2013

Due

Date> 2 Oct 2014

Date

Closed> 28 Dec 2013

Non-Conformance:

Evidence of efforts to prevent erosion and maintain natural water resources

Objective Evidence:

Streams although were marked ‘x’ to indicate buffer zone and no spraying should be

done however some spray activities were seen on the palms along the streams in

Kapling 11 and 12

Close-out evidence:

Training already conducted to all the sprayers to ensure streams are not polluted. SOP

“Aplikasi Bahan Kimia Di Area Dekat Sungai Kecil- Aliran Air” stated the action such as

marking and placing signboard near the river area to prohibit the spraying activity.

Minor 02

4.6.4

Date

Recorded>

3 Oct

2013

Due

Date> 2 Oct 2014

Date

Closed> 28 Dec 2013

Non-Conformance:

Evidence of pesticides storage and disposing pesticides container did not according to

current regulation.

Objective Evidence:

Storage is adequate with the presence of spill kit for accidental spillage. The floor is

sealed floor, concrete walls and non-leak and proper roofing and ventilation.

However, there is still no arrangement on its disposal of the empty chemical containers

since the last pre-assessment as it has accumulated for more that 3 months.

Close-out evidence:

Tani Maju had submitted the letter to PT Hindoli as the partnering mill to collect the all

empty chemical container. And PT Hindoli agreed to assist them to collect and send to

the relevant authority for the proper disposal.


Observations

OBS 1 2.2.2

Date

Recorded>

3 Oct

2013

Due

Date> N.A

Date

Closed> 15 Nov 2013

Non-Conformance:

Evidence on land borders are not marked clearly and maintained.

Objective Evidence:

Kapling 16 was visited and it was found that besides the peg using PVC pole with a red top that

was identified, the next peg along the boundary was unable to be located.

Close-out evidence:

The peg already set up along the boundary permanently using the wood block with the light blue

colour. Relevant SOP: Inspeksi Patok Batas Wilayah (doc: 028/SOP/KOP/TM/0/2013) has been

prepared to ensure all the area boundary are monitored with the landmark.

OBS 2 4.5.1

Date

Recorded>

3 Oct

2013

Due

Date> N.A

Date

Closed> 15 Nov 2013

Non-Conformance:

Smallholders should be able to demonstrate adequate knowledge on IPM and are able to

implement it

Objective Evidence:

Records show that PT Hindoli IPM trainer Mr Sungkowo has conducted training on 18 April

2013 on IPM.

However their management representatives have not attended to demonstrate adequate

knowledge on IPM and are able to implement it.

Close-out evidence:

Training already conducted and attended by the management representatives.

OBS 3 6.10.2

Date

Recorded>

3 Oct

2013

Due

Date> N.A

Date

Closed>

Non-Conformance:

KUD has elected Ketua Bidang II Kewangan who responsible on FFB pricing mechanism.

Objective Evidence:

However the KUD have to establish according to price determination mechanism which every

members of KUD can accepted.

Close-out evidence:

MOU of the pricing mechanism between PT Hindoli and Tani Maju will be only available once

RSPO certificate granted for Tani Maju.


APPENDIX B: NON-CONFORMITIES PREVIOUSLY IDENTIFIED

This is the main assessment


APPENDIX C: LIST OF STAKEHOLDERS CONTACTED

Smallholder Group Member

a. Group Manager- Yontano Maros

Sample Smallholder group member

a. Suratno- No Kapling 22

b. Heriyanto- No Kapling 24

c. Warsono- No Kapling 26

d. Sudi Wiyoto- No Kapling 29

e. Susmi Harjo- No Kapling 31

f. Supardiyanto- No Kapling 34

g. Bardiman- No Kapling 35

Internal Stakeholders

a. 2 sprayers

b. 2 harvester

External Stakeholders

a. PT Hindoli- Partnering Mill Scheme Smallholder

b. Petugas Pendamping RSPO and ISCC PT Hindoli- Sediono Iskandar

c. Toko Barokah- Arif (Pesticide supplier)

d. Head of Desa Bumi Kencana- Rianto

e. Head of Desa Dawas- Drs Suhapri

Documents

RSPO PRINCIPLES & CRITERIA CERTIFICATION REPORT Public ... · PDF fileRSPO PRINCIPLES & CRITERIA CERTIFICATION REPORT Public Summary ... is assisting Tani Maju to implement the RSPO