Stage-1 [ ] Stage-2 []...PT. MUTUAGUNG LESTARI ASSESSMENT REPORT SPO – 4006a.5 i Prepared by Mutuagung Lestari for STP POM, PT Sarana Titian Permata – Wilmar Int Ltd TABLE OF CONTENT

PT. MUTUAGUNG

LESTARI

ASSESSMENT REPORT

Roundtable on Sustainable Palm Oil Certification

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

Plantation Management/Owner : WILMAR INTERNATIONAL LIMITED

Plantation Name : PT SARANA TITIAN PERMATA – SARANA TITIAN

PERMATA POM

Location :

SERUYAN DISTRICT, CENTRAL KALIMANTAN PROVINCE, INDONESIA

Certificate Code : MUTU-RSPO/022

Date of certificate issue : November 30th 2012

Date of expiry of certificate : November 29th 2017

Assessment Date of Assessment PT. Mutuagung Lestari

Auditor Checked by Approved by

ST-2 May 7th Mei 2012 –

May 11th 2012 Nanang Mualib (Lead Auditor), Heri Antoni,

Muardi Marwas, Marsudi Eko Santoso Taufik

Margani Tony

Arifiarachman

S-1 19th August – 24th August

2013

Yudwi Wisnu Rahmanto (Lead Auditor), Muardi Marwas, Deni A. Novendi, Steve

Mualim, Sandra Purba

Octo H.P.N

Nainggolan Taufik Margani

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

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

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

MUTU Certification • Approved by RSPO Secretariat on June 2008

Submitted to RSPO on:

Approved by RSPO on:

Approved by Certification Body on:

13 November 2013 - 17 October 2013

http://www.mutucertification.com/

PT. MUTUAGUNG

LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 i Prepared by Mutuagung Lestari for STP POM, PT Sarana Titian Permata – Wilmar Int Ltd

TABLE OF CONTENT

FIGURE

Figure 1. Location Map of PT. Sarana Titian Permata Figure 2. Operational map of PT. Sarana Titian Permata

1 2

1.0 CERTIFICATION SCOPE

1.1 National Interpretation Used 3

1.2 Organization Information 3

1.3 Type of Assessment 3

1.4 Location of Plantations, Mill and Area Statement 3

1.5 Description of Supply Base 4

1.6 Dates of Plantings and Cycles 4

1.7 Tonnage Certified 5

1.8 Other Certifications 5

1.9 Time-Bound Plan for Other Management Units 6

2.0 ASSESSMENT PROCESS

2.1 Certification Body 7

2.2 Lead Assessor and Assessment Team 7

2.3 Methodology, Process and Locations of Assessment 7

2.4 Stakeholder Consultation and List of Stakeholders Contacted 10

2.5 Determine Next Visit 10

3.0 ASSESSMENT RESULT

3.1 3.2

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

11 29

3.3 Conformity Checklist of Certificate and Logo Use 33 3.4 Summary of RSPO Partial Certification 34

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

35

3.6 Summary of Arising Issues from Public, Management and Auditor Responses 44

4.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Signing of Assessment Findings 47

APPENDICES

1. List of Stakeholders Contacted in the RSPO Certification Process 48

2. Assessment Program 49

3. Glossary 50

4. Peer Review 51

PT MUTUAGUNG LESTARI

ASSESSMENT REPORT

SPO – 4006a.5 Page 1

Prepared by Mutuagung Lestari for STP POM, PT Sarana Titian Permata – Wilmar Int Ltd

Figure 1. Location Map of Sarana Titian Permata


ASSESSMENT REPORT

SPO – 4006a.5 Page 2

Prepared by Mutuagung Lestari for STP POM, PT Sarana Titian Permata – Wilmar Int Ltd

Figure 2. Operational Map of Sarana Titian Permata


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SPO – 4006a.5 Page 3 Prepared by Mutuagung Lestari for STP POM, PT Sarana Titian Permata – Wilmar Int Ltd

1.0 CERTIFICATION SCOPE

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

1.2 Organization Information

1.2.1 Company name PT. Sarana Titian Permata – WILMAR

1.2.2 Contact person SIMON SIBURAT

1.2.3 Company address 56 Neil Road, Singapore 088830

1.2.4 Telephone (65) 6216-0244

1.2.5 Fax (65) 6836-1709

1.2.6 E-mail [email protected]

1.2.7 Web page address www.wilmar-international.com

1.2.8 Company status Private

1.2.9 Management Representative who completed the application for certification

SIMON SIBURAT

1.2.10 Registered as RSPO member 2 September 2005

1.3 Type of Assessment

1.3.1 Scope of Assessment Palm oil Mill and Estate

1.3.2 Type of certificate Single

1.3.3 Company names listed in the certificate PT. SARANA TITIAN PERMATA

1.3.4 Number of Registered

1.4 Locations of Mill, Plantations and Area Statement

1.4.1 Location of Mill

Mill Name Locations

GPS

Latitude Longitude

SARANA TITIAN PERMATA POM

Seruyan Hilir Sub District, Seruyan District, Central Kalimantan Province

112° 32' 37" E 2° 53' 40 S

1.4.2 Location of Supply Base

Supply Base Location

GPS Latitude Longitude

STP1 Seruyan Hilir Sub District, Seruyan District, Central Kalimantan Province

112˚ 30' 54" E 2˚ 52' 3" S

STP2


112˚ 32' 55" E 2˚ 53' 1" S

STP3


112˚ 36' 49" E 2˚ 54' 28" S

1.4.3 Land Ownership

Private

State 19,979.00 Ha

Community

http://www.wilmar-international.com/


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1.4.7 Area Statement

Total area 19,979.00 Ha

Mature area 16,645.33 Ha

Immature area 139.61 Ha

Mill 11.40 Ha

Infrastructure 826.29 Ha

Nursery - Ha

Occupation 435.89 Ha

HCV 1,576.74 Ha

Land clearing plan 343.74 Ha

1.5 Description of Supply Base

1.5.1 Mill Description

Name of Mill Capacity

(tones/ hour)

FFB Processed

(tonnes/ year)

CPO Palm Kernel) PKO

Out put (tones)

Extraction (%)

Out put (tones)

Extraction (%)

Out put (tones)

Extraction (%)

STP POM 45 242,866 56,866 23 9,820 4.16 - -

*Source : production data August 2012 – July 2013

1.5.2 Estates Description

Name of Estate Total Area

(Ha)

Planted Area (Ha)

FFB (tonnes/year)

Yield (tonnes/ha/year)

Supplied to mill

FFB (tonnes/year)

%

STP 1 6,088.97 5,180.81 67,973.99 11.16 63,626.33 93

STP 2 6,984.83 6,207.57 90,130.60 12.90 88,651.98 98

STP 3 6,905.20 5,256.95 76,402.00 11.06 76,873.18 100

TOTAL 19,979.00 16,645.33 234,506.59 11.74 229,151.48 97


1.5.3 Smallholders and others

Other Sources Members Location

Total Area (Ha)

FFB (tonnes/year)

Supplied to mill

FFB (tonnes/year)

%

PT. Kerry Sawit Indonesia Estate 1

Wilmar District of Seruyan, Central Kalimantan Province 7,154.18 104,505.43 335.30 0.32

PT.Kerry Sawit Indonesia Estate 2


PT.Kerry Sawit Indonesia Estate 3

Wilmar District of Seruyan, Central Kalimantan Province 5,085.18 60,972.44 6,626.62 10.86

PT.Rimba Harapan sakti Estate 1

Wilmar District of Seruyan, Central Kalimantan Province 7,043.65 11,106.59

4,640.35

41.78

PT.Rimba Harapan sakti Estate 2

Wilmar District of Seruyan, Central Kalimantan Province 6,746.35 2,987.34 1,311.06 43.88


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PT.Mustika Sembuluh estate 2


TOTAL 38,171.18 385,104.56 13,654.54 -


1.5.4 Product categories FFB/CPO/PK /PKO

1.6 Dates of Plantings and Cycles

1.6.1 Age profile of planted palms*

Planting Year

Hectare

STP 1 (Ha)

STP 2 (Ha)

STP 3 (Ha)

Total (Ha)

2006 1,711.99 859.05 - 2,571.04

2007 1,831.90 2,180.05 2,125.15 6,137.42

2008 1,384.36 2,754.50 2,477.62 6,616.18

2009 252.86 371.29 636.00 1,260.15

2010 96.41 42.36 18.18 144.59

2013 - 43.20 - 43.10

TOTAL 5,227.22 6,250.45 5,256.95 16,784.95

1.6.2 New Development area after November 2007

Ha

1.6.3 Planting Cycle 1st Cycle (30) year

1.7 Tonnage claim for certification

1.7.1 Actual Annual Claim Certified Product

FFB Production 198,000 Ton/year

CPO Production 45,544 Ton/year

Palm Kernel (PK)Production 7,921 Ton/year

Palm Kernel Oil (PKO) Production - Ton/year

1.7.2 Claim Certified Tonnage of FFB

Name of Estates Total Area

(Ha) Planted Area

(Ha) FFB

(tonnes/year) Yield

(tonnes/ha/year)

STP 1 6,088.97 5,180.81 79,400 15.33

STP 2 6,984.83 6,207.57 114,000 18.36

STP 3 6,905.20 5,256.95 79,700 15.16

TOTAL 19.979 16,645.33 273,100 16.41

1.7.3 Claim Certified Tonnage of Palm Product

Name of Mill Capacity

(tonnes/hour) FFB Processed

(tonnes/year)

CPO Palm Kernel PKO

Out put (ton)

Extraction (%)

Out put (ton)

Extraction (%)

Out put (ton)

Extraction

(%)

STP POM 45 273,100 62,813 23 11,361 4.16 - -


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1.8 Other Certification

1.8.1 ISO 9001:2008/ISO 14001: 2004 -

1.8.2 OHSAS 18001:2007 -

1.8.3 HACCP -

1.8.4 Others -

1.9 Time Bound Plan for Other Management Units

Management Unit Location Hectare (Ha) Time Bound Plan Status

PT Mustika Sembuluh Central Kalimantan 19,450 2009 Certified

PT Kencana Sawit Indonesia West Sumatra. 10,216 2010 Certified

PT Kerry Sawit Indonesia Central Kalimantan 18,273 2010 Certified

PT Tania Selatan (BT & BB) South Sumatra 4,063 2010 Certified

PT AMP Plantation West Sumatra 9,226 2011 Certified

PT Primatama Muliajaya West Sumatra 1,940 2011 Certified

PT ANI (Sambas) West Kalimantan 7,910 2012 Certified

PT Buluh Canang Plantations South Sumatra 5,284 2012 Audited

PT Tania (Bamboo Kuning) South Sumatra 2,418 2012 Audited

PT Bumi Sawit Kencana Central Kalimantan 11,471 2012 Audited

PT Gersindo Minang Plantations West Sumatra 3,600 2012 Audited

PT Permata Hijau Pasaman West Sumatra 2,615 2012 Audited

PT Sarana Titian Permata Central Kalimantan 19,979 2012 Certified

PT Agro Palindo Sakti South Sumatra 1,102 2013 2013

PT Citra Riau Sarana Riau 2,894 2013 2013

PT Daya Labuhan Indah North Sumatra 5,288 2013 2013

PT Milano (CDE) North Sumatra 654 2013 2013

PT Mentaya Sawit Mas Central Kalimantan 16,371 2013 2013

PT ANI (Landak) West Kalimantan 7,148 2013 2013

PT Pratama Prosentindo West Kalimantan 8,543 2013 2013

PT Putra Indotropical West Kalimantan 9,496 2013 2013

PT Agro Palindo Sakti West Kalimantan 12,000 2014 2014

PT Daya Landak Plantation West Kalimantan 17,629 2014 2014

PT Indoresins Putra Mandiri West Kalimantan 9,071 2014 2014

PT Murini Sam Sam Riau 1,396 2014 2014

PT Sinarsiak Dianpermai Riau. 1,156 2014 2014

PT Karunia Kencana Permaisejati Central Kalimantan 19,650 2014 2014

PT Rimba Harapan Sakti Central Kalimantan 13,790 2015 2015

PT Buluh Cawang Plantations West Kalimantan 9,890 2015 2015

BBPOP (Benso Plantations) Ghana 2015 2015

PT Musi Banyuasin Indah South Sumatra 4,946 2015 2015


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2.0 ASSESSMENT PROCESS

2.1 Certification Body

PT Mutuagung Lestari

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

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

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

2.2 Lead Assessor and Assessment Team

2.2.1 Assessment Team

S-1 The assessment team consist of: a. Yudwi Wisnu Rahmanto (Lead Auditor). Bachelor of Forestry with Silviculture background. He worked at

professional independent Certification Body as an Auditor for last 3 years and has involved in auditing activities with various certification schemes. Selected training which have been followed, such as RSPO Endorsed Lead Auditor Training Course, ISPO Auditor/Lead Auditor Course, Quality Management System (QMS) ISO 9001:2008 Auditor/Lead Auditor Course, GIS-Basic Mapping and Spatial Analysis, Timber Legality Assurance System (SVLK), Verification Organization Training C.A.F.E Practices (Starbucks) and others internal training programs. He has involved in auditing activities, such as Sustainable Forest Management by FSC FM/COC Scheme, Sustainable Palm Oil by RSPO and ISPO Scheme, Coffee And Farmer Equity (C.A.F.E Practices) Starbucks, Organic Standard (EU, NOP, JAS) for Coffee Farmers and Organic Exchange for Textile.

b. Deni A. Novendi (Auditor). Bachelor of Forest. Natural Resources conservation department special in ecology and social. He involved in study of social economy of Citanduy-Cisanggarung watershed, Ciamis district, and East java. And also have experience within 13 years in forest planning and conservation on forest concession at Indonesia. Since 2003, he worked for independent certification body as auditor for forest sustainable certification (FSC and LEI scheme); Chain of study, ISO 9001 and RSPO. He audited for several companies. In assessment, he focused on environmental aspects, Commitments to transparency, legality and the social Aspect

c. Muardi Marwas (Auditor). Bachelor of Agriculture. Followed the Management System Certification (ISO 9001-2008), Awareness HACCP certification, training of RSPO auditor and training of RSPO Lead Auditor training, ISPO Lead auditor training and distribution quality management process - APMEA. He had involved several time in RSPO certification assessment as an auditor. In stage 2, he focused to verify best management practices and environmental.

d. Steve Mualim. Master in Environmental and natural resources management, Bogor Agricultural University. He has worked as a freelance in several consultants in the Environmental Impact Assessment. He has followed training of Lead Auditor training ISPO, RSPO awareness, Ecological Risk Assessment, Asian Network Update and Carbon, and Climate Change Mitigation and Adaptation for Agricultural Productivity

e. Sandra Purba. Bachelor of Forestry, Department of Forest Products Technology, Faculty of Agriculture, University of North Sumatra. Have experience working in oil palm plantations Company. She had attended such training: Training Expert of OHSAS General, Training ISPO Auditor.

2.3 Methodology, Process and Locations of Assessment

2.3.1 Estimate of person-days to implement assessment

ST-2 Number of Auditor : 4 persons Number of days for assessment at site : 5 days

S1 Number of Auditor : 6 persons Number of days for assessment at site : 6 days

2.3.2 Details of assessment process

S1 Surveillance 1 was done to carry out the management in in applying standards of plantation sustainability. The

implementation refers to the national interpretation: Principles and criteria for sustainable production of palm oil

(RSPO-NIWG INA), of the Republic of Indonesia, dated May 2008. Auditors shall assess the efforts of the company

to comply with such standards. The assessment is done by the method of a). Public consultations, hearings involving

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mailto:[email protected]


ASSESSMENT REPORT


the community and relevant agencies b) review of documents, assessment of the validity of company documents

related to land tenure, and social and environmental management c) Site visits, verification of the issues that arise

during public consultation and also the implementation of the field management. d) Interview. Auditors shall also

assess the corrective action taken by STP to correct the discrepancies that occur at Stage 2.

Public stakeholder consultation held simultaneously on 20th August 2013, at:

Environmental Agency, Labor Agency, National Land Agency, Forestry and Plantation Agency.

Tanjung Rangas village. Hearing was attended by local NGO, Tanjung Rangas representatives, and head village The results of review document and field visit have included n the summary report. These results have been submitted to the management unit. STP demonstrated high commitment in the implementation of standards of sustainable palm oil; therefore the auditor team recommended that STP is granted with RSPO certificate.

2.3.3 Locations of Assessment

S1 a. STP-1 Estate Hazardous Waste Temporary Warehouse. Auditor team observed the management of Hazardous Waste Temporary Warehouse at the estate. Based on the result of observation, Hazardous Waste Temporary Warehouse has been well managed and its retention time did not exceed the stipulated regulation. Hazardous waste has been marked according to the valid regulations. Generator House. Auditor team observed Generator House at the estate. Based on the result of observation, the company has implemented the principles of generator operational according to the valid Occupational Health & Safety. Landfill (Block 057). Auditor team observed any activity related with the land field. Based on the result of observation, domestic waste landfill has been conducted in accordance with the procedures that have been determined by the company, for example: waste was periodically collected and transported to the landfill. Nursery. Auditor team observed the technique of clone seedling at the nursery and technique of seedling handling that not follows the standard. Based on the result of observation, the company has implemented the SOP of nursery well. Planting at peat land (Block 297). Auditor team observed planting activity at the peat land. The wide area of each land is 6.58 ha with 895 trees per ha and 9.98 ha with 1355 trees per ha. Planting activity (Division 1a Block 038). Auditor observed harvesting activity. Based on the result of interview with workers, they have been understood about the technique of harvesting and good occupational safety. Harvesting system used harvesting plots system so the quality of harvesting plots can be easily controlled because harvesters are responsible to their harvesting plots. Spraying activity (Block 056 Division 1b). Based on the result of field observation and interview with workers, it can be identified that workers have understood the chemical ingredients used in the activity, danger to the environment if spraying activity reach the riparian area, occupational health and safety. Housing area at STP 1. Interview with employees’ wife about the facilities, waste management, complaint submission, and observation of housing environment condition. Hazardous and Toxic Waste Material Warehouse at STP 1. STP has marked Hazardous and Toxic Material around the area. Material Safety Data Sheet (MSDS) has been available for chemical material at the warehouse. Based on the interview result with the officers of pesticide mixing, they have not understood yet about the first aid emergency steps in case of chemical poisoning. Water treatment. The company has clean water and potable water procurement program for the consumption of employees. Potable water was managed and monitored so its quality in accordance with the requirement of Local Health Agency. Clinic. Interview was conducted to the company’s doctor related with the mechanism of pregnant/breastfeeding workers and regular medical checkup. Medical equipments were maintained and sterile. Clinical waste was managed in accordance with the valid regulation. Warehouse. Safety signboard was available, First Aid Kits boxes were available, and equipments at workshop were well organized. Based on the interview with the officers and welders, they have had the certificate of competence and have checked their health condition. Equipments for firefighting. The equipments were complete. There was a routine checking. Poor preparedness. b. STP-2 Estate Hazardous Waste Temporary Warehouse. Auditor team observed the management of Hazardous Waste Temporary


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Warehouse at the estate. Based on the result of observation, Hazardous Waste Temporary Warehouse has been well managed and its retention time did not exceed its valid regulation. Hazardous and toxic waste has been marked with valid symbols. Final Disposal Site/Landfill (Block 068). Auditor team observed activities at the Final Disposal Site/Landfill. Based on the result of observation, domestic waste filling and backfilling have been conducted in accordance with the procedures as determined by the company for example waste management was conducted by periodically collecting them and transporting them to the Final Disposal Site/Landfill Empty Fruit Bunches Application (Block 166). Auditor team observed solid waste utilization at the estate. Based on the result of observation empty fruit bunches application was effective to decrease solid waste at the POM and decrease the use of fertilizer at the estate. Water reservoir (Block 093). Auditor team observed activities at the water reservoir related with the operational activities of POM. Based on the result of observation, the company has water reservoir and its condition was well maintained so, in dry season, its water availability for POM can be maintained. Land clearing activity and planting activity at the mineral land (Block 004 and 003). Land clearing for palm tree planting was mechanically conducted with no burning (zero burning). In 2013, as many as 43,20 ha area out of 75 ha area has been cleared, some of them were planted. Its unit of tree per ha was still similar as many as 136 trees. w23wsas Fertilization activity (Block 052). Auditor team observed activity related with fertilization. Based on the result of observation, the employees have implemented best management practices such as right dose, right time, right type, and right way. Harvesting activity (Block 058). Auditor observed activity related with harvesting. Based on the result of interview with workers, they have understood about the technique of harvesting and good occupational safety. Harvesting system used harvesting plots so the quality of harvesting plots can be easily controlled because harvesters were responsible to their harvesting plots. Housing area. Interview was conducted with the wife of employees about facilities, waste management, complaint submission, and observation of the environmental condition around the housing area. Hazardous and Toxic Waste Warehouse. STP has installed the symbols of Hazardous and Toxic Waste around the area. Material Safety Data Sheet (MSDS) for chemical material has been available at the warehouse. Based on the result of interview with the officers of chemical material mixing, they have not known about the procedures of first aid emergency in case of chemical material poisoning. Water treatment. The company has clean water and potable water procurement program for the consumption of employees. Potable water was managed and monitored so its quality in accordance with the requirement of Local Health Agency. Clinic. Interview with doctor related with the mechanism of pregnant/breastfeeding workers and regular medical checkup. Medical equipments were maintained and sterile. Clinical waste was managed in accordance with the valid regulation. Warehouse. Safety signboard was available, First Aid Kits boxes were available, and equipments at workshop were well organized. Based on the interview with the officers and welders, they have had the certificate of competence and have checked their health condition. Equipments for firefighting. Based on the result of observation at the field, the equipments were complete. There was a routine checking. Equipments were ready to be used. c. POM STP Processing. Safety signboard was available; employees were completed with PPE and wore. Based on the interview with employees, they have known the procedure of their jobs. The operator also has been trained and own certificate, the medical condition of the employees has been checked for general checkup and special checkup, and first aid emergency kits were also available. Land Application (Block 098). Auditor team observed liquid waste application activity at the estate. Based on the result of observation, Land Application activity has been conducted in accordance with the procedure by making flat bed for Land Application and routine monitoring has also been conducted. Hazardous and Toxic Waste Warehouse. STP has installed the symbols of Hazardous and Toxic Waste around the area. Material Safety Data Sheet (MSDS) for chemical material has been available at the warehouse. Based on the result of interview with the officers of chemical material mixing, they have not known about the procedures of first aid emergency in case of chemical material poisoning.


ASSESSMENT REPORT


2.4 Stakeholder Consultation and List of Stakeholders Contacted

2.4.1 Summary of stakeholder consultation process.

Public consultation carried out by interview with internal and external stakeholder. Auditor meets up with relevant institution. Issues arising from stakeholder explained in Sub 3.6.

2.4.2 List of stakeholders contacted

Please see Appendix 3

2.5 Determining Next Visit

Surveillance-2 will be determined later, before passing one year RSPO certified.


ASSESSMENT REPORT


3.0. ASSESSMENT RESULT 3.1. Summary of Assessment Report of the RSPO Certification

Mutuagung Lestari has conducted an assessment of STP POM – PT. Sarana Titian Permata operation consisting of one (1) mill and three (3) oil palm estates. During the assessment, there were 1 (one) Non conformity was assigned against Major Compliance Indicators; three (3) nonconformities were assigned against Minor Compliance Indicator. Further explanation of the non-conformities raised and corrective actions taken by the company are provided in section 3.5. The company has already prepared and implemented the corrective action(s) that had been reviewed and accepted by Auditors in form of documentation evidences e.g. (document record/photographic). Those corrective actions taken that consist of one (1) Major non-conformity(s) and two (2) Minor non-conformity(s) had been closed out shall be verified during next assessment. MUTUAGUNG LESTARI found that STP POM – PT. Sarana Titian Permata complied with the requirements of RSPO Principles & Criteria and National Interpretation, RSPO Principles and Criteria (P&C) for Sustainable Palm Oil Production, Republic of Indonesia - RSPO INA-NIWG, May 2008 and/or Scheme Smallholders, October 2009*) . Therefore MUTUAGUNG LESTARI Recommends RSPO Certification of compliance is continued.

Ref Std.

VERIFICATION RESULT of MUTU-Certification

PRINCIPLE #1 COMMITMENT TO TRANSPARENCY

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

PT STP has a Log Book for Incoming Mail and Outgoing Mail. In the list of incoming mail that has been recorded from 2007 – 2013, there was no information request submitted by related stakeholder. Records in 2012 – 2013 were: Permit Submission on the Use of Company’s Road (No: 102/Kop-kb/tr/iv/2012, April 7th, 2012) and participation on the Republic of Indonesia 68th anniversary parade in 2013 (No: 300/366/Trantibum-SH/VIII/2013, August 13th, 2013). Meanwhile, the retention time of information request document was 3 years. It was written in the procedure of SOP 47/PR/2/0312, Point 3.0.

Status: Full Compliance

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

The type of given information and response were: Document of Legality (Permit of Location, Permit of Plantation Business, Permit of Building Construction, License of Operator); Environmental Document (EIA, RKL-RPL, Report of RKL RPL Implementation, Report of HCV Identification, Document of Social Impact Study); Document of Occupational Health & Safety (Structure of Guiding Committee of Occupational Safety & Health, Report of Guiding Committee of Occupational Safety & Health, Report of Accident at Work). All documents were stored in accordance with the procedures that have been written in the SOP 47/PR/2/0312, as many as 3 years.


PRINCIPLE #2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

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

STP has a periodic mechanism of evaluation (6 months) to ensure that all legal requirements and valid regulations have been met. The result of evaluation was recorded in the List of Regulation and Law (Form 02/SOP 08/CKP/(2)/0111 on May 1st, 2013) which describe in detail article per article about legal requirement that must be met by the company. Until August 2013, List of Regulation and Law has been revised for six times and the sixth revision was on May 1st, 2013.


ASSESSMENT REPORT


The evidences about the implementation and adjustment with the valid regulations and their amendment were available at the location. In 2012-2013 those were:

(1) Adjustment of minimum wage such as Intern Office Memo Number 001/IOM-HRD/I/2013 on January 14th, 2013 which referred to the Decree of Central Kalimantan Governor Number 27 in 2012 on November 26th, 2012;

(2) The result of annual measurement on peat land subsidence referred to the Government Regulation number 150 year 2000, for example at Block N.24, O.41, and M.55;

(3) The evidence of zero burning for land clearing in 2013 as many as 40 ha out of 75 ha that has been planned at the STP-2, Block 003 and 004, referred to the Law number 18 yearn 2004;

(4) Director Letter Number 321/STP/LEG-Lgl /JKT/XII/2012 on December 6th, 2012 concerning the releasing of forest area referred to the Government Regulation Number 60 year 2012.


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

STP has a document of Location Permit which covered 19.992 ha. It was published by the Regent of Seruyan (referred to the Article 13, the Agricultural Minister Regulation of the Republic of Indonesia Number 26/Permentan/OT.140/2/2007), as follow: 1. Decree of Seruyan Regent Number 55 year 2004 on April 10th, 2004 on 19.202 ha area 2. Decree of Seruyan Regent Number 268 year 2006 on November 6th, 2006 on 709 ha area. Decree of Seruyan Regent

number 255 year 2007 on September 17th, 2007 – on 790 ha area. At this location, there was also document and map of cadastral measurement result at Location A and Location B. Its wide area was 20.043 ha which consist of 19.266 ha (Location A) and 777 ha (Location B). This area was larger as much as + 51 ha than the wide area as written in the Permit of Location. Based on the result of superimpose at cadastral map at Location A and Location A, this gap was caused by the overlap of field measurement as many as + 64 ha, so STP actual wide area was 20.043 ha – 64 ha = 19.979 ha (in accordance with the Area Statement). Until August 2013, STP did not have Land Use Title certificate as written in the Article 28 of Law number 5 year 1960 because of spatial changing. Based on the Decree of the Head of Forestry and Plantation Planning Agency Number 778/VIII-KP/2000, PT STP has had the consideration of forest releasing for plantation area where all of the area were used for KPP (Production Development Area) and KPPL (Settlement Area and Other Usage Area). After the publishing of Local Regulation number 8 year 2003, the status of STP area was changed. As many as + 9.679 ha was HPK (Convertible Forest) and referring to the Government Regulation number 60 year 2012, it needed forest area releasing; and as many as + 6.083 ha was Production Forest so it must be processed through the exchange of forest area. Based on the Director Letter Number 321/STP/LEG-Lgl/JKT/XII/2012 on December 6th, 2012, STP submitted a permit for forest area releasing to the Indonesian Ministry of Forestry; and it has been responded by the Directorate General of Forestry Planning through a Letter Number S.319/Menhut-II/KUH/2013 dated March 18th, 2013 that there were several incomplete information. The evidence of boundaries pole can be found at the field and it was monitored every 6 months. The last monitoring was conducted in July 2013 for STP-1 and in June 2013 for STP-2. Based on the monitoring result, there were 139 boundaries pole at all STP, some of them were broken (fall down), such as boundaries pole STP-112, STP-126, and STP-127. At the time of field verification to the boundaries pole at STP-112 (S 02o 56’ 51,2” and E 112o24’ 02,1”), boundaries pole at STP-113 (S 02o 56’ 32,3” and E 112o 29” 27,4”), boundaries pole at STP-103 (S 02o 57’ 28,9” and E 112o 31’ 26”) and boundaries pole at STP-108 (S 02o 50’ 10,1” and E 112o 33’ 21,7”), all boundaries pole at STP-112 were good and well maintained. These boundaries pole were cemented, blue paint and number of boundaries pole were painted white. All area that controlled by other parties were recorded in the List of Social Conflict of PT Sarana Titian Permata (Number of File was 002/BM.PR/SC/2012). It describe the detail of land locations that still controlled by the community STP has a mechanism of land conflict resolution such as SOP 30/BM/(0)/0409 which consistently implemented. The evidences of compensated land processing were available at the location.


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

Based on the document of HCV identification result in 2008, Social Impact Assessment 2010, and interview with the community figures in Tanjung Rangas Village and Pematang Limau Village, it can be identified that traditional fishing activity was stil l conducted by the community around the STP area, both for additional income and family consumption purpose. Fishing activity in STP area was especially conducted in the river and tributaries such as Ubar Tributary, and it has been mapped as HCV 1, HCV 3, and HCV 4 in the scale of 1: 48.000.


ASSESSMENT REPORT


There was no traditional right area for sure but STP still committed not to prohibit traditional community activities (Tanjung Rangas Village and Pematang Limau Village) in the company’s working area. It has been accommodated in the Memorandum of Understanding on January 20th, 2012, for example:

1. The company and community together maintain and preserve area that can be used to look for food by the community, for example river for fish, the location of water spring, land for cultivation area, etc.

2. The company gives the freedom to the community to hunt around the company’s area/estate except for protected animals.

At the time of field survey, the condition of tributaries was well maintained and protected by restoration program (enrichment program) and maintenance of legume cover crop (Mucuna spp). In Ubar Tributary at Block 085/086 STP1 Division 3, there was a fishermen and caught fish. It showed that STP did not ban the traditional rights of the people.


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

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

Working plan to ensure the plantation business was divided into two terms budget, namely short term (annual) and long term (5 years). For long term budget, has plan for 2013 – 2018. This plan contains several activities such as: Land clearing, New Planting, Planting, Estimation of Production per Year, and Yield per Year. For the next 5 years STP’s POM plan (2013 – 2018), there are several information and activity plans, such as: maximum capacity for a year, installed capacity, processed FFB, the use of POM, OER, and KER. Short term budget (annual) was the detail of long term plan. The budget covered several program for more detail, such as: the summary of Area Statement, Production of Plant, Maintenance of Plant, Maintenance of Machines and Heavy Equipment, Fertilization, etc.


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

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

The company has Agriculture Manual & Standards Operating Procedure for Oil Palm which approved by the Executive Director (2007). It was then updated in 2011. It can be used as the technical guidance for activity at the estate from land clearing activity to harvesting activity. Chapter 2 concerning crossing of DxP (Tenera) Seedlings, it contains the procedure of seedling and nursery. The procedure of nursery regulate technical phases, such as:

1. Ordering of Oil Palm Planting Material 2. The election of seedling location and its design. 3. Pre-Nursery. 4. Main Nursery 5. Issue of Seedlings 6. Recording 7. Safety and Health

The company has a standard for mill activity. This procedure has been implemented for sustainable palm oil production: a. Grading, Loading ramp, Sterilizer, Thresher, Digester, Press, vibrating screen, sludge desender pump, rotary strainer,

sludge desender pump, rotary strainer, sludge centrifuge, vacuum dryer, transfer pump, depericaper, Nut Silo, Ripple Mill, Clay bath, Kernel Silo, Boiler, Generator, Turbine, WTP.

b. Working instruction related with environmental aspect, such as hazardous and toxic waste management, and Land Application. All standards and documents related with the operational activity were under the monitoring of document control.

The company monitor and check the operational activity/Field Quality Audits (Quantitative Agro-management system (QAMS) such as production loss, FFB grading, fertilization census, monitoring of sandy area, Land Application, and implementation of sustainable estate production every year. The company also has a guidance of internal audit for production process, quality standard, and compliance to the Occupational Health & Safety Environment of POM (Doc. STP Manual-001). Audit was minimally conducted once a year.



ASSESSMENT REPORT


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

Practices to sustain soil fertility were started with leaves analysis (once a year) and soil analysis (every 5 years). Leaves analysis in 2012 at STP-1 Estate, 240 leaves sample were taken and 224 leaves sample were taken at STP-2 Estate. The result of leaves analysis determined the amount of nutrient in the following year for fertilization recommendation (2013). It was highly related with the result of soil sample to evaluate fertility level of soil in palm oil cultivation activity. In accordance with the result of leaves and soil analysis, there were several actions to maintain the fertility of soil, such as: plan and realization of fertilization in 2013, planting of Legume Cover Crops (Mucuna bracteata), Application of Empty Fruit Bunches and The Use of Liquid Waste from the Mill (Land Application). Because of these actions, it can be seen that there was an increasing of soil fertility and FFB production. For example: Yield STP-1 Estate is 0.95 ton/Ha/month (2012) increased to 1.24 ton/Ha/month (until July 2013).


4.3 Practices minimize and control erosion and degradation of soils.

At the marginal land, the result of field survey was available. Its scale was 1: 20.000. There were 18 types of soil at the estate, such as group C/sandy soil (Bso and Mri), group D (Sri), Group E/ peat land (Gli, Gdg, Slh, Ocm). The detail result of survey showed that the topography of estate has slope 0 – 12 % (Undulating), did not need terracering, and management of sloping area. For road maintenance program, STP has conducted road gravelling activity and patching in several collection roads. It was conducted to ease FFB transportation and accessibility of activity. There were several programs for peat land maintenance, such as: main drain construction, collection drain (Block 102 – STP 2), monitoring of water gate, water stick level, and Pyzometer boundary poles (Block 096 – Div. 3 STP 1) and plant density (148 trees/Ha). Meanwhile, sandy soil was managed by making a mounding at each tree in order to make fertilization more effective.


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

PT STP did not have replanting plan because the oldest plants were planted in 2006 and there was a possibility to develop new plants. Based on the Map of Location by PT STP, scale 1:86.000, there were 5 rivers crossing PT STP’s area, such as: Ubar River, Batang River, Sepatu River, Saka Usin River, and Saka Baru River. The management and control of riparian area is described in the SOP of Riparian (Number of document: SOP 20/EHS/(0)/0409) part 5.2 The Determination of Riparian Area. There was a program to maintain the quality of surface water and ground water. It was conducted through the evaluation of water sample test result. In May 2013, the test result by accredited laboratory number LP-195-IDN showed that all surface water parameter still below its determined quality standard as stipulated by the government. Sample was taken at Keluak River and Pukun River. Meanwhile, monitoring of liquid waste BOD from the mill has been conducted by measuring liquid waste quality at each anaerobic pond and facultative pond. It was then flowed to Land Application. All results of sample test showed that there was no parameter that exceeded its determined quality standard. Meanwhile, the use of water in FFB processing at the mill in January – July 2013 showed efficiency as much as 1.35 m3/ton processed FFB.


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

The company has a mechanism of observation and management of pest, it has been documented. To determine the measuring standard of caterpillar attack of each frond. Interview with detection officers (Leni and Alexia), showed that the detection of pest/disease attack was routinely conducted. It was helped by one worker to lower frond. The technique of leaves sample taking has followed the valid mechanism. The result of detection can be showed. Cultivation control has been conducted by planting beneficial plant such as Turnera subulata, Casia cobanensis, Antigonon leptosus at the Main Road and Collection Road. Surveillance at several Blocks showed that many beneficial plants had been planted. To determine measuring standard. The maximum attack of rat was 5% at the tree and 20% at the Final Collection Site. The use of rodentycide was highly determined if it exceeded the measuring standard. Detection of rhinoceros beetle, termites, and ganoderma. attack


ASSESSMENT REPORT


Detection was conducted by census officer at each Division. There were 2-3 officers at each division. The detection was conducted for bagworms, caterpillar, rat, termite, fungus, rhinoceros beetle and wild boar. Field observation results were given to the field conductor. In order to develop competence of census officer, the company trained Field conductor/maintenance foreman (32) STP, on May 23rd, 2013 and the record of training was available. Detection officer/census officer recorded the wide area of pest management control, such as: Detection of caterpillar at the STP 1 Division 2B. It showed high attack of bagworms. Because of this attack, a spraying was conducted by using chemical material namely Matador (Lambda-cyhalothrin). The realization of Casia cobanensis was conducted at Estate 2 at Block 015-017, 029, 229 (January/March 2013). The realization of Casia cobanensis and Turnera subulata was conducted at Estate 2 at Block 123 and 141 (June 2013). Pest and disease attack (STP on February 1st, 2012). It covered the monitoring of caterpillar attack (number/frond), rat (%), soil termite (number), Ganoderma, and Rhinoceros beetle attack (%). The result showed that there was no attack that exceeded the threshold. A surveillance at several blocks showed that beneficial plant had been massively planted. Internal audit team (QC) observed the quality of estate, production, maintenance, condition of tree, pest/disease attack per week. The result of observation was used as the initial information for the estate for detection and census.


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

The company used chemical material. These pesticides have a marketing authorization and have been registered at the institution in accordance with the list of pesticide book by the Ministry of Agriculture 2012. The active ingredients were glufosinat ammonium, isopropilamina glyphosate, metil metsulfuron, and Lamda silahotrin.

a. Active ingredients: glufosinat ammonium. Active ingredients content was 150 gram/liter. Target: wide leaves weeds. b. Active ingredients: Isopropilamina glyphosate. Active ingredients content 480 gram/liter. Target: small leaves weeds. c. Active ingredients: Metil Metsulfuron. Active ingredients content 20%. Target: wide leaves weeds. d. Active ingredients: Lambda cyalotrin. Active ingredients content 25 gram/liter. Target: leaf-eating caterpillars and thrips.

Based on the use of pesticide and stock at the chemical material warehouse, there was no use of chemical material that can be classified into 1A/1B type according to the WHO, chemical materials that can be classified in the Convention of Stockholm and Rotterdam. Paraquat was not used anymore. The washing of used chemical material packaging and the management of waste water from washing has followed the SOP. Used chemical material packaging was managed. Once it used, used chemical material packaging was washed and stored at the Hazardous and Toxic Waste Warehouse. The company cooperated with PT Maju Asri Jaya Utama (licensed collector of Hazardous and Toxic Waste) to collect this used chemical material packaging. The company has composed a program of routine medical checkup as many as two times in a year, in accordance with the SOP of periodic medical checkup; the number of SOP is 07/EHS/(0)/0409. The company showed the report of periodic medical checkup of operator on July 17th, 2013 for STP 1 and STP 2. Periodic medical checkup was conducted by company’s doctor who has Company Hygiene & Occupational Health certificate. Based on the study of document, it can be seen that the result of medical checkup was normal and all operators were good for work. Based on the interview with medical officers (company’s doctor), there was no pregnant/breastfeeding workers who work as spraying workers. It has been verified during the surveillance and interview with spraying workers.


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

STP has the policy of Occupational Health & Safety, such as: 1. To implement safety principle, for example: to improve the condition or dangerous acts to eliminate an accident or disease

caused by activity at work. 2. To implement the concept of net production. 3. To implement the management of working area. 4. To meet proper standard to eliminate environmental pollution.


ASSESSMENT REPORT


5. To create safety behavior culture at the company. The company can show the evidence about the implementation of Occupational Health & Safety policy such as a minutes of meeting of PPE distribution and its monitoring, for example: minutes of meeting of PPE distribution in July 2013 for boiler station (safety boots, masks, ear muff, and glasses), workshop (welding clothes, masks, safety shoes, welding gloves, and welding mask), spraying and muck (mask, apron, and rubber gloves) etc. Based on the field survey, the company has placed several announcement boards and evacuation route at several strategic area and high risk buildings. In addition, at the warehouse and workshop at STP 1, STP 2, and POM STP, all workers have been completed with standard PPE. There were also PPE for guests at the working area of STP-1 Estate and STP-2, for example: agrochemical warehouse, Hazardous Waste Temporary Warehouse, mixing area, and POM. Nonconformance, please see NC 2013.01 Observation on October 14th, 2013 Based on the improvement that has been delivered by the auditor team in the form of PPE compliance for visitors: Ear muff, Safety shoes, and Mask of chemical (STP1 and STP2). Meanwhile, the availability of PPE at POM STP was: helmet, safety shoes, dust mask, chemical mask, and ear plug (POM STP). Based on the evidence of improvement compliance subjected to the company, Nonconformance NC 2013.01 is CLOSED The organization who responsible to the occupational safety and health program at SPT is the Guiding Committee of Occupational Safety & Health. The structure of Guiding Committee of Occupational Safety & Health of STP has been legalized by Labor, Transmigration, and Tourism Agency of Seruyan Regency. The company showed a periodic meeting program by the Guiding Committee of Occupational Safety & Health which conducted every three months in January - May 2013 and every month in June 2013. The company showed a report of Guiding Committee of Occupational Safety & Health in quarter, (Jan-March 2013) and (April-June 2013) and the evidence of delivery to the related department, in accordance with the letter number 088/CKP-EHS/VII/2013. The company showed a policy related with Labor Social Assurance as written in the company’s regulation (Decree of Labor, Transmigration, and Tourism Agency of Seruyan Regency number: 560/321/Disnakertranspar/III/2013) article 20 concerning Labor Social Assurance (JKK, JKM, and JHT). The company also showed the receipt of Labor Social Assurance payment, for example the payment in July 2013 through BNI on August 14th, 2013 for 171 freelancers, 32 workers at mill, 691 workers at STP 1 and 876 workers at STP2. A special medical checkup (audiometric) for high risk workers was conducted on July 17th, 2013 at the clinic of PT Mustika Sembuluh. It was conducted by certified doctor of Company Hygiene & Occupational Health Number: 11.021/PM-XIII/10. It was conducted for 9 workers (STP-1) and 17 workers (STP-2). Meanwhile, at POM STP. Second phase has been conducted (Jan-Jun 2013) for 64 workers. Based on the report of medical checkup, all workers were still in normal boundary. The last cholinesterase checkup was conducted on November 11th, 2011. It was not in accordance with the SOP and valid regulation which state that a special medical checkup was conducted once a year. Nonconformance please see NC 2013.02 Observation on October 14th, 2013 Special medical checkup (cholinesterase) for spraying workers, fertilization workers, and welder at STP1, STP2, and STP3 has been conducted on September 22nd, 2013 (by an accredited laboratory). The result was still in normal measuring standard. Based on the evidence of improvement, Minor Nonconformance NC 2013.02 is CLOSED. POM of STP has analyzed the risk of occupational health and safety and it has been well documented. STP can show the document of impact aspect identification and program of environmental improvement, occupational health and safety in 2013, number of document is FRM 01/SOP 11/EHS/(1)/090. There was also a report of analysis and risk control in the implementation of occupational health and safety of PT STP. There was a control for moderate and low risk level. There were several conducted risk controls such as technical engineering, administrative, and PPE. STP POM showed risk analysis activity in the report of Environmental Impact Aspect and Occupational Health & Safety PT STP POM: such as settlement area, electrical, maintenance, engine room, boiler, water treatment plant, kernel, and processing stations. There were several analyzed points, such as: product and service activity, actual/potential aspect/hazard, and actual/potential impact/risk. Based on the result of identification, POM of STP analyzed the possibility and severity and the current control was described. Training program in 2013 for Occupational Health & Safety and Public (Estate and mill) was available and well documented. In addition, the company showed the evidence of Occupational Health & Safety technical training for operator and training of welder competence. Estate and POM of STP has a team of emergency situation and its procedure (number of document is SOP02/EHS/(0)/0409).


ASSESSMENT REPORT


This organization is responsible to the coordination in case of emergency situation. Based on the field survey, first aid kit boxes were available at high risk building with A box category (the number of workers <25 people). However, at the time of survey, first aid kit boxes were incomplete as written in the list of content (based on the Regulation of Labor and Transmigration Agency number 15 year 2008) for example warehouse (estate and mill), there was no triangle bandage at the warehouse of STP2 and POM, plaster was also not available at the warehouse of STP 1 . Nonconformance, please see NC 2013.03 Observation on October 14th, 2013 The company has submitted the evidence of improvement related with the compliance of first aid kit in accordance with the Regulation of Labor Agency number 15 year 2008. Based on this improvement, first aid emergency requirement has been complete and in accordance with the valid regulation for POM of STP: office, Workshop, Laboratory, and Engine Room. Estate Area: Workshop, warehouse, Daycare, generator house, and (Water Treatment Plan. Based on the evidence of improvement compliance as showed by the company, Nonconformance NC 2013.03 is CLOSED


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

Training program in 2013, number of document FRM 2/SOP 38/(0)/0409 explains about the type of training, plan, and realization of schedule. PT STP estate 1 and 2 has 13 training programs for public and Occupational Health & Safety, for example: training of Procedure standard for occupational safety and procedure of emergency response (program and realization in February and July); Best practice harvesting, manuring, spraying, agrochemical handling, best practice slashing (plan and realization in February and July); Manuring standard (plan in March and August, realization in August); first aid emergency on accident (plan in March and September, realization in February and August); detection and census of pest (plan in March and August); recognition of pest and disease (plan in April and September, realization in June) and SOP of Peat Area Management and FFB of Grading Standard (plan in April and October). POM Training Programs by STP, as many as 4 type of trainings, for example: socialization of company’s vision and mission was planned in October, Socialization of mill’s SOP was planned in May and November, Quality Control Training (Laboratory) was planned in April and October and trainings related with Occupational Health & Safety (LOTO, Work permit, APAR, and Hydrant, First Aid Emergency, PPE and working accident) was planned in March and November. Record of training was stored at the file of Training, the company showed the report of training for workers:

Report of First Aid Emergency training at STP 1 on August 12th, 2013 at the meeting room of STP 1 and STP 2 on February 22nd, 2013. It was attended by the 31 operational supervisors.

Minutes of meeting of training of best practices spraying on July 22nd, 2013 at Div 1A which attended by 19 spraying workers.

Minutes of meeting of best practices slashing at STP 2 on March 13th, 2013, Div 3A and 3B, the content was concerning PPE and working equipment safety, it was attended by 26 workers.

Minutes of meeting of best practices manuring on June 12th, 2013, div 1B, it was attended by 21 workers.

Minutes of meeting of SOP Dispatch CPO and PK socialization on July 4th2013 it was attended by 29 workers

Minutes of meeting of socialization of liquid waste utilization of palm oil industry on the 1st of February 2013, conducted by PT STP cooperated with the Environmental Agency of Seruyan Regency at Multipurpose Building of Seruyan Regency, it was attended by 8 people, and list of attendance and documentation were available.

Minutes of meeting of steering committee socialization on February 5th, 2013, it was attended by 17 people at the meeting room of STP POM.

The company used trained contractor, for example:

Based on the company profile, Tanjung Borneo was a building contractor. Its contents was the certificate of company’s establishment, permit of construction service business (the number is 0064/ASPEKNAS/15/07/10), certificate of working skill for technical officers (number of certificate is 037017/PATI-SKTK/TA022/2010 for building skilled operators; number of certificate is 032378/ASTTI/SKT/IV/2007 for settlement area skilled operators), and appendix of working experiences in building construction.

The company also showed the minutes of meeting of contractor socialization on February 7th, 2013. It was attended by 12 participants. The content of socialization was occupational health and safety.



ASSESSMENT REPORT


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

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

Until the assessment process, there was no revision/change of the Document of Environmental Impact Assessment (EIA) owned by PT STP. The company has received a Decree of environmental feasibility as stipulated in the Decree of Central Kalimantan Governor number 188.44/363/2007 on August 31st, 2007 by Central Kalimantan Governor. Observation at the field showed that this additional area was fully managed as an area of HCV 1.3 – Rare or endangered ecosystems so that there was no operational changes. Therefore the company needs to coordinate with the related agency (Plantation Agency and Environmental Agency) about the additional area in the document Environmental Study and Plantation Business Permit. Based on the observation of document and field observation, PT Sarana Titian Permata has implemented environmental management and monitoring as recommended by EIS/Environmental Impact Statement document especially in the matrix of environmental management and monitoring. The company has document of EIA (EIS, RKL, and RPL) that have been approved. Recommendation that must be conducted as written in the RKL and RPL is environmental management and monitoring activities in several aspects, such as:

Micro climate

Noise and emission

Physical and chemical characteristic

Ground water and river water quality

Aquatic biota

Soil erosion This EIS implementation has been periodically reported every semester through the report of Environmental Management Plan and Environmental Monitoring Plan (RKL-RPL) to the related institutions two times a year. The company can show the evidence of RKL/RPL implementation report for the second semester of 2012 to the Central Kalimantan Governor on June 3rd, 2013, Environmental Agency of Central Kalimantan Province on June 3rd, 2013, and Seruyan Regent on May 29th, 2013.


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

At the location, there was a document of HCV Assessment of The Wilmar Central Kalimantan Project in 2009 which also presented the presence of rare, endangered, threatened, and HCV habitat. There was also a report of Rapid Survey in January-March 2013. It contains the detail of flora and fauna in the working area of STP, consist of 40 mammals, 40 aves, and 44 flora. Based on the result of identification, there were 17 types of flora protected by the Government Regulation number 7/1999, such as: mentibu (Dactylocladus stenostachys), Nepenthes (Nepenthes sp.), kempas (Compassia excelsa), durian (Durio sp.); 27 types of fauna: Marbled Cat (Prionailurus bengalensis), Malayan Sun Bear (Helarctos malayanus), Crocodile (Crocoylus porosus), orang utan (Pongo pygmeus), and pecuk ular (Anhinga melanogaster Pennant). There were several identified HCV, such as: NKT 1.3 – Natural landscape, there was a path of orang utan. NKT 3 – Endangered ecosystem of Kerangas Forest NKT 4.2 – Important area to control erosion (riparian zone) NKT 4.3 – Important area as fire border. There was an evidence of protection effort for protected species and its habitat for example announcement board and documentation of socialization activity to the community and workers at each estate in rotation. The content presented in this socialization referred to the Law number 41 year 1999 concerning Forestry, Law number 7 year 2004 concerning Water Resources, Law number 5 year 1994 concerning Biodiversity, and Government Regulation number 7 year 1999 concerning Flora and Fauna Preservation. There was an installed poster in 2012-2013 concerning wild animal and orang utan protection. It can be seen at Sub Block A44


ASSESSMENT REPORT


STP-1. STP also has and determined a special officer to supervise the management of HCV. His name is Moch Dasrial. This officer was assigned by the Decree of HRD Head Number 018/STP-HRD/SK/II/2011 on February 22nd, 2011. He has been trained for HCV management and the evidence can be showed.


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

The company has composed the mechanism of Hazardous and Toxic Waste management which produced at the estate and mill. Hazardous and Toxic Waste can be classified into liquid waste and solid waste. Liquid waste in the form of disposal water was originally from the production process at the mill, disposal water from the washing of sack/pesticide containers and used oil. Solid Hazardous and Toxic Waste was stored in a licensed place before being delivered to the licensed collector. The company can show the SOP of waste management, such as: SOP of liquid waste utilization from the POM in palm estate, the number of SOP is 14/EHS/(0)/0409 year 2009. However, based on the result of field survey at the STP-2 Estate, there was used oil and used oil filter which not properly stored in unlicensed area. Nonconformance, please see NCR 2013.04 with minor category The company also has a SOP of household waste. The number of SOP is SOP 16/EHS/(1)/0911 which valid since 2011. Related with medical waste from the clinic, the company has a Collective Agreement Letter among all companies of Wilmar Group in Central Kalimantan (number: C & A 1608.15/2013/MS/VII/MS-224) with the Murjani Hospital, Sampit (number: 944/TU-2/001/DM/VII/2013) on July 1st, 2013 concerning medical waste disposal from the company which ended on December 31st, 2013. The company did not dispose liquid waste to the waters. Waste water from production process was used for Land Application at the estate. The company has received a permit for waste water utilization from the palm oil industry at the palm estate area of PT. Sarana Titian Permata through the Decree of Seruyan Regent number 65 approved by the Seruyan Regent on February 13th, year 2013 and it valid for two years.

The company has measured liquid waste quality at each anaerobic pond and facultative pond. It wil l be then flowed to the land for Land Application. The result of liquid waste test for May 2013 showed that there was no tested parameter (BOD, COD, pH, Pb, Cd, Cu, and Zn) which exceeded their quality standard.

Based on the observation of document and field observation, there was no Hazardous and Toxic Waste at Hazardous Waste Temporary Warehouse which exceeded its determined retention time as many as 90 days. The company has a document of Hazardous and Toxic Waste management as written in the hazardous and toxic waste management report, 2nd period (April –June 2013).

The company has reported and composed a report of Hazardous and Toxic Waste production which produced by PT Sarana Titian Permata in the Second Period (April – June 2013) to the Seruyan Regent on July 18th, 2013, to the Environmental Agency Seruyan Regency on July 18th, 2013, and to the Environmental Agency of Central Kalimantan Province on July 18th, 2013.

Status: NCR 2013.04 with minor category

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

The company has provided a monitoring of renewable energy use and its efficiency analysis. In January – July 2013, the average use of energy by using shell fuel was 0.78/ton CPO (efficiency was 3,039.41 MJ/Ton CPO). Meanwhile the average use of energy by using fiber fuel was 0.78/ton CPO (efficiency was 7,187.03 MJ/Ton CPO). Meanwhile, in the same period, the average use of fossil fuel was 1.84 L/ton CPO and efficiency of electricity was 2.84 KWh/ton CPO. In January – July 2013, the average production at POM STP was 4,693.87 ton CPO, the average use of diesel at POM STP and the average use of power was 8,032.57 liter and 12,726 Kwh.


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.


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STP has a procedure, the number is PTD 03/CKP/(03)/ CKP/(0)/0409 – Procedure of Emergency Response of land fire, covered preparedness and contacts (clause 5.1), fire protection (clause 5.2), firefighters (clause 5.3) and evacuation (clause 5.4). The company showed the Equipment Inventory List of wildfire emergency response and monitoring as follows::

- List and monitoring of fire emergency response equipments at STP 1 in 2013, in January- August 2013. The equipments were: 3 pcs of hoses, nozzle of extinguishers, 10 psc of extinguisher clothes, 10 pcs of helmets, 10 pcs of gloves, 3 units of robin machine, 3 pcs of vest, 1 unit of grader, shovel, 4 units of excavator, backhoe, 2 unit of JCV, 2 units of, portable water pump and water bowser with 3 units of tractors. Based on the field survey, all equipments were in good condition.

- Inventory list of emergency response equipment and monitoring of emergency response equipment in June 2013 for STP 2, the type of equipments were: 10 pcs of clothes for firemen, 10 pcs of trousers for firemen, 10 pcs of helmets, 9 pcs of boots, 10 pcs of gloves, 4 pcs of nozzles, 1 grader, shovel, 3 excavators, backhoe, 2 JCV, 2 portable water pump, 2 water bowser with tractors, 3 water machines, 2 pcs of hose, 4 pcs of shovel.

The company has an opportunity to increase the performance by increasing preparedness of land fire emergency response (for example at STP 1, the position of tackling with no water at the water tank and less water pressure).


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

There was an identification of emission source for POM STP as shown by this following table:

Type Category Management

The residual water from processing activity

Water pollution Waste Water Treatment Plant and Land Application

The residual water from washing activity at the mill.

Water pollution The construction of trap pond

Emission of generator Air pollution By using biodiesel fuel and by conducted a greening program.

Emission of boiler Air pollution By using a filter and minimizing the use of fuel.

Emission of production machine

Air pollution Greening, using machine efficiently.

Emission of vehicles Air pollution Greening, using vehicle efficiently.

Noise of generators’ machine

Noise pollution By using earplug and earmuff

Noise of mill’s machine Noise pollution By using earplug and earmuff

Vibration of machines Occupational health By making a buffer for each machine, by wearing safety shoes

Odor Air pollution By conducting a greening program, by wearing mask.

The company has conducted greenhouse gas emission at estate STP 1 and estate STP 2 as described in the following table:

No Activity Greenhouse gas emission

1 Spraying of herbicide The use of herbicide

2 Fertilization The use of fertilizer

3 To kill palm tree The use of herbicide

4 Operation and maintenance of generator.

The use of lubricant

5 Transportation of fertilizer and chemical material.

The use of oil and lubricant

6 Transportation of fuel and oil The use of oil

7 Maintenance of vehicle The use of oil and lubricant

8 Collecting, transportation, and management of Hazardous and Toxic Waste.

The use of vehicle’s oil and lubricant

9 Collecting of solid waste The use of oil and lubricant


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The company has tested the quality of ambient air quality and emission (every 6 months) for the first semester of 2013 as described in the RKL-RPL document in the first period of 2013. The result of measurement showed that the quality of ambient air, emission, noise, vibration, and odor did not exceed the determined quality standards. Related with the effort of pollution and emission decreasing, the company conducted a Land Application to decrease liquid waste which produced by POM (record of land application in April-August 2013 was available and the result of land application soil analysis was also available). Empty fruit bunches from the operational activity of POM were used by the company to be applied at the estate area (there was a record of empty fruit bunches application in January-July 2013 at STP-1 Estate and STP-2 Estate). All liquid waste was previously managed at the pond of Waste Water Treatment Plant at the POM. Before being used, waste was managed so it reached the quality standard of waste water use at palm estate: pH. 5-9 and BOD≤ 5000 mg/l. The management of Waste Water Treatment Plant which conducted by the company was a biological system through anaerobic process, facultative, aerobic, and control ponds. Overall, POM STP has 10 pounds of Waste Water Treatment Plant and one buffer pond. The average of produced liquid waste per day is 600 m3 and total waste volume that can be accommodated is 214.850 m3. The company also has measured the quality of liquid waste at each anaerobic pond and facultative pond which then flowed to the land for Land Application. The result of liquid was test in May 2013 showed that all tested parameters (pH, BOD, COD, Pb, Cd, Cu, and Zn) did not exceed the quality standard.


PRINCIPLE #6 Responsible consideration of employees and of individuals and communities affected by growers and mills

6.1 Aspects of plantation and mill management, including replanting, that have social impacts are identified in a participatory way, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate the continuous improvement.

Based on the study of social impact in 2010, environmental management coverage and social impact still relevant with the condition of current company’s operational activity. Until the implementation of assessment, there was no revision in the environmental and social management document. PT. STP has demonstrated the seriousness to achieve plasma plantation development. This was shown on the roadmap document of the activities which carried out by PT. STP-related with the development of smallholdings. There were several activities that had been conducted by PT. STP such as socialization in Tanjung Rangas Village related with smallholding program.

There was a minutes of meeting of planned smallholding land measurement on December 18th, 2012 in Tanjung Rangas Village at SILIP, Tanjung Rangas Village about 3 km from the southern boundary of STP-1.

Community Development program plan has involved the participation of impacted community in composing this plan. The company has accommodated the aspiration from the community through a proposal which submitted by the community. It will be then evaluated by the company which activity needed by the community. The company has a plan of community development program in Corporate Social Responsibility program by PT. STP. The identification of potency of Community Development and Corporate Social Responsibility program in 2011 are described as follow:

Tanjung Rangas Village a) Goat breeding b) Freshwater aquaculture c) Rubber farmer d) Horticulture farmer e) Palm farmer

Community Development Program of PT STP in 2013

Communication and friendship activity The purpose is the establishment of good relations with the community, to identify the exist potencies, opportunities, and problems, to coordinate with the stakeholders of village

Community empowerment and development.

Social assistance in education sector, religion sector, health sector, art and sport sector, public infrastructure sector, and emergency response sector.

Until 2013, the company has conducted several Community Development-Corporate Social Responsibility programs, such as:

The establishment of Karya Bersama Cooperation as the contractor of FFB transportation and fruit bunch for PT. STP


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which empower local community around the company (there was a contract of FFB transportation, the number of contract is C&A 1608.15/2013/STPI-169)

Rice field pilot project in Pematang Limau Village (there was a document and record of rice field pilot project as many as 0.5 ha and hand over of rice plant seedlings as many as 5 kg).

Prophet Muhammad's Birthday event in 2013 in Tanjung Rangas Village Seruyan Hilir Sub District by donated IDR 1,000,000


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.

The procedures owned by the company about the communication and consultation with the community such as: 1. SOP No. 12/ESH/(0)-0409, April 2009 concerning Internal Communication 2. SOP No. 13/ESH/(0)-0409, April 2009 concerning External Communication. 3. SOP No. 34/PR/(0)-0409, April 2009 concerning Procedure of Complaint Receiving. 4. SOP No. 44/PR/(0)-0411, April 2011 concerning assignment of consultation and communication officer to the

community. In addition, there was a list of stakeholder which directly and indirectly involved in the operational activity of estate owned by PT STP. The total registered stakeholders were 288 organization, consist of: 10 organizations in Central Kalimantan Province; 12 stakeholders in Seruyan Regency; 2 sub district heads; 2 village heads, 20 community figures, 6 Large Estates Seruyan-Kotim, 9 police and 3 The Indonesian National Armed Forces; 20 NGOs and 1 university; 144 contractors, 4 hospitals, 2 banks, and 1 insurance. Meanwhile, the record of community aspiration and its response was documented in the communication book. For example: on April 7th, 2012. Number of Letter is 102/Kop-kb/tr/iv/2012. Karya Bersama Village Cooperative Unit in Tanjung Rangas Village related with the Permit of Company’s Road Utilization. It has been directly responded through the communication by phone on April 14th, 2012. There were several officers who responsible to the communication and consultation with the community, such as: Permit and Governance Relation Department (3 people), Public Relation and Social Community (3 people), Land Acquisition/Scheme smallholding Department (7 people), Security Department (3 people), Community Development/Corporate Social Responsibility Department (3 people).


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

The company has an open system that has been received by all impacted parties to receive complaint and to solve effectively, in time, and proper way. This system was in the form: document of land acquisition technical guide for palm tree business, SOP of Land Permit & OPS-006/(1)-1008, on October 15th, 2008 concerning land acquisition; SOP of Land Permit & OPS-004/ (1)-1008, on October 15th, 2008 concerning Land Use Title. In 2012-2013, there was no complaint or dispute from the community or worker.


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.

STP has a conflict/compensation payment system on the loss of legal right or traditional right in the form of SOP, as follow: 1. Document of land acquisition technical guideline for palm estate business area. 2. SOP-Land Permit & OPS-006/(1)-1008, on October 15th, 2008 concerning land acquisition. 3. SOP 29/BM/(0)/0409 concerning land acquisition technical guideline. 4. SOP 30/BM/(0)/0409 concerning land dispute resolution. 5. MoU of traditional right 6. SOP 46/PR/(0)-0709 concerning information request to the outer party (transparency). 7. SOP 43/PR/(2)-0510 concerning recognition and commitment of company to the community’s traditional right.

All records of negotiation process from the result of compensation payment agreement were available in the location. It consist of the result of location checking, documentation of bid, calculation of crops, letter of land right releasing, receipt of payment,


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and pictures. The sample of record on the negotiation of crops compensation payment on behalf of Gulam is available, as follow:,

1. Documentation of location checking on May 22nd, 2013 by land acquisition team of STP; 2. The offer letter (first) from the land owner (Gulam) on April 22nd, 2013 as much as IDR 225.000.000,-, Letter of land

price demand (second offer) on May 22nd, 2013 as much as IDR 150.000.000, - and price offer (third) on June 10th, 2013 as much as IDR 7.000.000,/ha.

3. The calculation of crop compensation payment witnessed by team in Tanjung Rangas Village, team of land acquisition from the company, and land owner (Gulam)


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

The company paid workers’ salary according to the valid minimum standard. The company showed the Decree by Central Kalimantan Governor Number 27 year 2012 concerning Regional Minimum Wage in 2013 Seruyan Regency. It stated that the minimum wage is IDR 1.697.892,-. Based on this Decree, the company determined the policy in the form of Inter Office Memo from the Plantation Head Number 001/IOM-HRD/I/2013 on January 14thm 2013 concerning worker’s salary for Central Kalimantan project, as much as IDR 1.697.892,- per month and IDR 67.916,- per hour. The company showed the evidence of salary payment, as follow:

Report of workers’ salary payment recapitulation for workers at POM and Estate (STP 1 and STP 2) for July 2013 for Non-Permanent Workers (PHL) and Permanent Workers (PHT). Based on the study of data and interview with the workers, salary payment was conducted in accordance with the standard of minimum wage that has been determined by government.

The company has a regulation that has been agreed by the company and workers and it has been approved on March 13th, 2013 by the Head of Labor, Transmigration, and Tourism Agency, Seruyan Regency number 560/321/DISNAKERTRANSPAR/III/2013. The company provides facilities and infrastructure for workers. The company also able to show the list of facilities and infrastructure of POM STP, Estate 1, and Estate 2. Based on the field survey, the company provided:

1. Housing area 2. Education facilities such as kindergarten and elementary school at the location while junior high school and senior high

school has school bus. 3. Clean water (water treatment) at each housing area. 4. Health facilities such as clinic at each estate. 5. Sport facilities (football court, volley ball court, badminton court). 6. Praying house such as mosque and church. 7. Daycare 8. Generator and facility of electricity.

There was a contract with the contractor and it required that contractor must follow the valid regulation especially in manpower such as the obligation on the use of PPE and social security. For example, CV Usaha Makmur (building construction) number of contract is C&A 1608.15/2012/STP2-082, in article 8 (responsibility and risk) clause 8.6.1 follow the valid regulation of manpower including the registration of Labor Social Assurance for each worker, clause 8.6.2 pay attention of Occupational Health & Safety aspect, workers, and clause 8.6.3 pay attention the empowerment of its workers.


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.

The company has a SOP about the freedom for workers so they can join with organization as written in SOP 42/HRD/(0)/06.09 and approved by General Manager and it has the mechanism for complaint submission. It can be conducted in three mechanism as described below:

Procedure of complaint submission from workers through their supervisor.

Procedure of complaint submission from workers through consultation and complaint agency.

Procedure of complaint and suggestion submission through mail box of suggestion and complaint. The company has LKS bipartite that has been approved by the Head of Labor, Transmigration, and Tourism Agency in Seruyan Regency. The number of decree is 560/327/DINAKERTRANS/III/2013 concerning the approval of LKS Bipartit PT Sarana Titian


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Permata on March 13th, 2013. There is a record of routine meeting between the company and LKS Bipartit for example:

The company can show the minutes of meeting of socialization about complaint submission by workers (STP-1 Estate) on June 20th, 2013 and monthly LKS bipartite meeting has been conducted and led by Staff of EHS. It was attended by the management board of LKS bipartite and the representative of workers.

There was a minutes of meeting about the socialization of Permanent Workers promotion (for STP-2 Estate) about the procedure of Permanent Workers promotion, assessment of work ethic, and facilities of permanent workers on March 19th, 2013 and known by the Estate Manager

Based on the interview with one of the head of LKS Bipartite at STP-1 Estate, LKS bipartite able to accommodate all aspirations from the workers and the company has showed a quite good response to all submitted complaint from the workers. Until now, the relationship of workers and stakeholders was good.


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

The company regulated the requirement of workers in the SOP Number 32/HRD/(0)-0409, clause 4.1.1 that it was forbidden to employ under age kids (below 18 years old). Based on the interview with several workers at the spraying section, harvesting section, and fertilization section, the workers have known about the regulation of minimum age (18 years old) and restriction to recruit workers under 19 years old. The company has implemented the policy about workers age requirement in accordance with the regulation. Workers were not allowed to take underage kids at work. The company always orally suggested or by using signboard. Based on the field survey, there was no worker under 18 years old who work at the company.


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

There was a regulation about equal opportunity and treatment in the working area in the Memorandum 026/WIP-HRD/Int-VIII/2009 and 081/HRD-WGP/Ibt-IV/2008. The worker has an opportunity for position promotion. The company has merit-based career path. All employees are entitled to up position, no discrimination of race, caste, nationality, religion and age. Non-permanent employees (KHL) can be appointed as permanent employees if they meet daily 21 working days for 3 consecutive months. Supervisor/clerk can be promoted as field conductor through a selection/test process. The chosen supervisor can attend training for 6 months at the Regional CKP School. Meanwhile, field conductor promotion can be adjusted with the company’s requirement. The promotion was based on the KPI (Key Performance Indicator) assessment which conducted every month. Interview with the Supervisor of harvesting, and promotion into field conductor is open for all supervisors. If there is a vacancy, supervisor will be asked to attend a sort of test at the regional. Supervisor of maintenance (Supianor) was promoted as filed conductor on maintenance on May 6th, 2013.


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

Regulation of sexual harassment and criminality was available. Memo number 026/WIP-HRD/Int-VIII/2009 on August 12th, 2009 stated about the prevention of criminality and sexual harassment to women. Regulation has been socialized to the workers on April 25th, 2011. As the implementation of above policies, gender committee was established to accommodate the prevention of sexual harassment. There was no new policy about complaint handling specifically. There was no sexual harassment case. The company has a mechanism of complaint submission from workers. The SOP of complaint submission from workers (FRM 01/SOP42/HRD/(0)/06.09) regulates those points. The record of complaint submission from workers was recorded in the summary of complaint submission from workers. Bipartite meeting on April 24th, 2013 discussed about workers’ complaint especially by those who had not received Labor Social Assurance card. The company has followed up the result of this meeting and delivered it to the Labor Social Assurance. In this meeting, the company explained about ‘worker security’ received by workers.


6.10


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

The company does not but palm fruits from other parties because all fruits are produced in the owned estate or affiliation estate/one group and not from other estate/community. The mechanism of price was determined internally through the Department of Trading/Marketing of the Willmar Headquarter.


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

The contribution of the company in the local development was conducted in Community Development program. It includes the area of activity, amount of fund, and the area of activity take place, for example:

- June 15th, 2012. Donation for praying house (mosque) in Seruyan Raya Sub District - June 29th, 2012. Donation for Land Acquisition for School (Junior High School 1- Atap) in Pematang Limau Village. - November 1st, 2012. Cow raising by Kalua Makmur Farmer Group as many as 4 cows. The location: Tanjung Rangas

Village.


PRINCIPLE #7 Responsible development of new plantings

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

The company has composed a document of Environmental Impact Analysis and it has been approved by the Governor of Central Kalimantan through the Decree number 188.44/363/2007 on August 31st, 2007 concerning Environmental Feasibility for Activity at the Estate and Mill of Palm Oil Processing by PT Sarana Titian Permata, Seruyan Regency, Central Kalimantan Province. The wide area of study is 19.202 Ha and the capacity of POM is 120 Ton FFB/hour. It contains about big and significant impact prediction during preconstruction, construction, and operational phase. The operational impact prediction consist of: microclimate, gas and dust, noise, physical and chemical characteristic of soil, river water quality, ground water quality, debit of river water, aquatic biota, attitudes and perceptions, public unrest, and the quality of public health. PT STP has RKL-RPL implementation report in the second semester of 2012. Its content was about the management and monitoring aspect of operational impact, such as: micro climate, gas and dust, noise, physical and chemical characteristic of soil, river water quality, ground water quality, debit of river water, aquatic biota, community attitude and perception, community unrest, and the quality of public health. There were several management actions which conducted by the company in social aspect, such as:

Impact Management

Community unrest To conduct Community Development - Corporate Social Responsibility in accordance with the regulation

To conduct social approach with the community in surrounding about waste management from the mill.

Visit from the related institution (Environmental Agency of Seruyan Regency) about the monitoring of permit and guidance to the continuation of the company's environmental management.

The quality of public health To provide polyclinic for community treatment

To provide free medical checkup for workers and families.

To provide trained and skill medical workers.

Attitudes and community perception.

To invite community figures/local government during the final presentation of land application study by PT. Sarana Titian Permata

To conduct Community Development - Corporate Social Responsibility program in accordance with the regulation.

To conduct social approach for the community in surrounding about waste management from the mill.

PT STP already has a document of Social Impact Assessment which composed by The Indonesian Resource Institute (IndRI) in 2010. It described about the plan of social impact management and monitoring, for example:


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Impact Parameter Management Plan

Working opportunity Determination of working procedure.

Recruitment of worker for partner

Recruitment of staff from area around PT STP

Consultation and communication Training about worker union.

Facility of worker union establishment.

To compose an agenda of LKB bipartite meeting

To increase the understanding of technical working procedure for the workers.

Stability of working To increase the understanding of workers about each job desk.

To provide understanding to workers about the mechanism of work plan.

To maintain the security of worker at the estate.


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

Palm tree planting in peat area was conducted by considering peat area characteristic so there would be no damage in the environmental function. Palm tree planting followed the procedure by maintaining the space of tree as many as 136 – 148 trees. The planting at Block 297 (6,58 ha; 895 trees), tree unit per ha is 136 tree. Planting at Block 495 (9,98 ha; 1,355 tree) Planting at peat area in 83,93 ha. Research team measured the depth of peat. The measurement result showed that the depth varies from 0.2 meter to 2.7 meter. The company did not plant in conservation area as recommended by the SOP. Based on the field survey to planted peat area, Block 297 (6.58 ha) was planted with 895 trees and Block 495 (9.98 ha) was planted with 1,355 trees. In peat area, drainage has been constructed to maintain water level. Land survey covered information of topography, climate, soil type, soil fertility, and drainage. It has been conducted in 2007 by Param Agriculture. The result of survey was a report of land conformity, such as:

1. Environmental aspect - Topography and drainage - Geology and Geomorphology - Climate - Rainfall and rain day

2. Condition of studied soil - Detail of soil: Overall, there were 18 soils mapping which identified at the estate. - Topography - Flood - Soil erosion - Status of soil nutrient - Evaluation of soil nutrient status - Soil Management Group

The detail map from the result of survey by Param in 2007 showed that the topography of estate had a slope 0 – 12 % (undulating), there was no steep land and prone to landslides. At several blocks, there was peat area. There were several groups of marginal land, such as group C/sandy land (Bso and Mri), group D (Sri), Group E/peat land (Gli, Gdg, Slh, Ocm). The scale of map is 1: 20.000. Report of land survey was completed with the strategy of development for this marginal land, such as: Strategy of sandy land management (Soil Group C and D) as recommended by the detail result of land survey and Memo from GM Number 072/EMU/VII/2009: Mulching with EFB (Empty Fruit Bunch), LCC planting, and proper fertilization. The strategy of peat land management (Soil group E) as recommended by the detail result of land survey and SOP of peat area management. The number of SOP is SA 03/EMU/(3)/0811 about the management of water level and proper fertilization (unsure Cu, Zn, B).


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


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or more High Conservation Values.

Based on the area statement, there was a realization of planting in 2006 (2.571,04 ha) and 2007 (6.137,42 ha). Document of HCV identification result in 2007 ensured that this area was not situated in HCV area. The result of field survey to Block 038 STP1 (in 2006), Block 103 STP2 (in 2007), and Block 041 STP2 (in 2007) showed that there was no planting in HCV area.


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

Detail soil map of survey result by Param in 2007 showed that the topography of land was 0 – 12 % (undulating), there was no steep and prone to landslides area. At several blocks, there was a peat area. Palm tree planting at peat area was conducted by considering the characteristic of peat area so it did not damage the environment function. Tree spacing was maintained for 136 – 148 trees. Planting at Block 297 (6,58 ha; 895 tree), Tree unit per ha was 136 tree. Planting at Block 495 (9,98 ha; 1355 tree) Planting at peat area in 83,93 ha. Research team measured the depth of peat. The result of measurement showed that the depth varies 0.2 meter to 2.7 meter. The company did not plant in conservation area as recommended by the SOP. Based on the field survey to planted peat area, Block 297 (6.58 ha) was planted with 895 trees and Block 495 (9.98 ha) was planted with 1,355 trees. In peat area, drainage has been constructed to maintain water level. Based on the study of document, there was an indication of planting activity at the conservation area at Block 087 and Block 301 Estate 1. The result of survey to this block showed that conservation area was well maintained. The current condition of this area is bushes and secondary forest. Riparian area was maintained.


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

Land clearing for new planting in Land Use Title area by PT STP was conducted through a documented system which involved many parties. In the plantation area of PT STP, there was a new opening area (in permitted area); its land has been acquitted by land owner. The location of land that has been completely solved in July 2011 to June 2013 was controlled over by Gulam Group (Gulam, Jumansyah, and Mulyanto), at Block 004 (E-006 and E-007) STP1 for + 52 ha. The evidence of solving was a document of price negotiation, result of physical measurement, and payment receipt, were completely available at the location.


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

Based on the document of social impact assessment in August 2010 by The Indonesian Research Institute, the community in Tanjung Rangas Village and Pematang Limau Village generally come from Banjar Ethnic Group. In these two villages, there was no hereditary traditional activity as conducted by indigenous people of Kalimantan (Dayak Ethnic Group) who live in the riparian area. Meanwhile, the procedure related with the identification of party which receiving compensation (beneficiaries) referred to the SOP of Land Acquisition Technical Guideline (number of SOP 29/BM/(0)/0409, on April 13th, 2009. All parties received compensation as described in detail in this procedure and in accordance with the valid regulation.


7.7 Use of fire in the preparation of new plantings is avoided other than in specific situations, as identified in the ASEAN guidelines or other regional best practice.

The company has a mechanism related with land fire, land fire emergency response (PTD 03/CKP/(03)/ CKP/(0)/0409) covered preparedness and contacts (clause 5.1), fire protection (clause 5.2), firefighters (clause 5.3) and evacuation (clause 5.4). It was supported by the facilities of land fire prevention, such as (1) Fire breaker such as road and ditch 2-3 meter – along the area which directly share the same border with the community (2) signboards not to burn land – placed in several high access area such as at the roadside. Prone area has been identified. It informed fire prone area and potency of fire. During field survey, there was no activity, ex-fire, and land fire at the estate of PT STP.


PRINCIPLE #8 Commitment to continuous improvement in key areas of activity


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

Company has conducted a periodic monitoring through Internal Audit. The purpose is to assess all activities in accordance with the standard of sustainable palm oil management. In several activities, the company also has analyzed and evaluated several crucial aspects, such as: the decreasing of certain chemical material (in accordance with the recommendation of WHO), waste decreasing (chemical, pollution, and emission), environmental and social impact. These action plans are described below:

1. Periodic field checking to the anticipation of fuel checking to the environment at each gas station, Generator House, and fuel warehouse.

2. Liquid waste parameter monitoring from palm oil processing through waste water sample test. 3. To involve village community in surrounding especially those who were impacted by the operational activity at the

estate through the composing of Community Development / Corporate Social Responsibility program in accordance with the community needs.

Meanwhile, several findings of former audit had been well conducted. It is a company’s commitment in implemented RSPO standard in estate and mill management. Those several finding that had been conducted are described below:

- Major 2.1.1 related with the permit of Land Clearing PT STP. Compliance: Permit of Plantation Business number 525/109/EK/2007. First point that published by Seruyan Regent on March 13th, 2007 was the base of plantation development by PT Sarana Titian Permata.

- Minor 5.3.1 related with the implementation of Hazardous and Toxic Waste management mechanism. Compliance: all Hazardous and Toxic Wastes have been placed at the licensed Temporary Area of Hazardous and Toxic Waste and delivered Hazardous and Toxic Waste to the licensed transporter.

- Minor 6.9.2 related with the understanding of reproduction right protection to the field workers. Field survey and interview with spraying workers and field workers (female) showed that they have understood the mechanism and policy of specific protection concerning reproduction right.



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3.2. Summary of Assessment Report of Supply Chain

Clause (Module E) CPO Mills - Mass Balance Requirements

1 Documented Procedures

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

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

a. Procedures owned by POM STP which related with SCCS are: SOP Mass Balance (SOP-ISCC-01, on April 1st, 2012). This procedure consist of:

- Purpose: to secure that FFB receiving until delivery CSPO/CPO was conducted with proper working steps start from the receiving of FFB, management of FFB into CSPO/CPO, delivery of CSPO/CPO until the reporting so FFB and product can be easily and consistently traced.

- Coverage: this procedure valid for each part which responsible to provide the receiving data of FFB, FFB management, until the delivery of CSPO/CPO to meet the certification of RSPO and other certification at the mill area of PT STP – Seruyan.

b. Person in charge who based on this procedure are described below: - Security officer: to record all FFB expedition and dispatch of CSPO/CPO. - Weighbridge officer: to weigh all received FFB and delivered product and to identify certified and non-certified

product. - Logistic: to calculate the result of production, dispatch, report the result of production, delivery report and

traceability report of CSPO/CPO. - Grading officer: to conduct FFB grading in accordance with the determined standard. - Head of Administration: to monitor the receiving of FFB and CSPO/CPO. - Mill Head: to secure all processing activities.


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

SOP of FFB receiving (SOP/STPPOM-LOG(01)-003). The summary of procedure: 1. Purpose: To ensure that FFB was received at mill regularly and there was no contamination with goods/things or other

plants so FFB can be efficiently processed in order to get high quality of CPO. 2. Coverage: This SOP is valid in the mill area of PT STP. 3. Procedure

- FFB come with Fruit Delivery Letter and then weighted at the weighbridge by identify certified and noncertified FFB RSPO (CSPO).

- Once it has been weighted, truck comes to loading ramp area as directed by grading officer. - Officer sorting/grading fruit in accordance with the criteria of fruit that has been determined. - FFB at loading ramp should be 75% of total capacity of loading ramp. - If FFB accumulated and exceeded the capacity of loading ramp and mill is stagnant, coordination with the estate is

needed to stop the delivery. - Handover of fruit at loading ramp and grading is recorded in the report of FFB delivery.

SOP of grading (SOP/STPPOM-PRS-01). The summary of procedure: 1. Purpose: To ensure that FFB which received by mill is in accordance with the determined criteria of CPO and PK. 2. Coverage: This SOP valid for mill area at PT STP. 3. Procedure:

- Grading officer regulates car to be unloaded at the loading ramp by identifying certified and non-certified FFB RSPO (CSPO).

- To record the number of vehicle, origin area of division, Block, estate, number of ticket, and entry hour. - Grading is conducted in accordance with the determined criteria of fruit. If the result of grading is not proper, estate

will be contacted to see the condition of fruit at the loading ramp.


ASSESSMENT REPORT


- Grading officer fill the form of Minutes of Meeting of grading based on the result of grading as reported by the officer of weight.


2 Purchasing and goods in

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

The receiving of material by using the SOP of FFB receiving (SOP/STPPOM-LOG(01)-003) and the procedure of SOP Mass Balance (SOP-ISCC-01, on April 1st, 2012). All recapitulation of FFB receiving to the logistic was recorded in the Mass Balance Calculation Format.


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

The SOP of Excessive Production (SOP/STPPOM-MR-005) stated that Mill Head must immediately report in writing (e-mail or mail) to the Certification Institute if mill will deliver excessive product of the claimed volume.


3 Record keeping

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

In accordance with the document of SOP of Document Management (SOP/STPPOM-MR-012), records document for RSPO must be recapitulated every three months (quarter). These records are:

- Record of certified FFB receiving - Record of non-certified FFB receiving - Record of CSPO (CPO) selling - Record of CSPO (Palm Kernel) selling

The sample or report: CPO Products Daily and Monthly Movement Summary Report 2013

Period Production Dispatch Stock

Non-Sustainable

Sustainable Non-Sustainable

Sustainable Non-Sustainable

Sustainable

Quarter-1 (Jan-Mar)

295,837 15,395,892 1,320,270 14,391,130 99,877 988,631

Quarter-2 (Apr-Jun)

211,839 12,995,645 100,170 13,975,690 211,546 942,967

Status:

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

In accordance with the document of SOP of Document Management (SOP/STPPOM-MR-012), the retention time of a document has been determined for 10 years for Quality Management System, Environment, Occupational Health & Safety, and other certification.


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

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

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

In accordance with the document of SOP of Document Management (SOP/STPPOM-MR-012), record document of RSPO must be recapitulated per three months (quarter). These records are:

- Record of certified FFB receiving - Record of non-certified FFB receiving - Record of CSPO (CPO) selling - Record of CSPO (Palm Kernel) selling


ASSESSMENT REPORT


The sample or report: CPO Products Daily and Monthly Movement Summary Report 2013

Period Production Dispatch Stock

Non-Sustainabl

e

Sustainable

Non-Sustainabl

e

Sustainable

Non-Sustainable

Sustainable

Quarter-1 (Jan-Mar)

295,837 15,395,892 1,320,270 14,391,130 99,877 988,631

Quarter-2 (Apr-Jun)

211,839 12,995,645 100,170 13,975,690 211,546 942,967

SOP of Mass Balance (SOP-ISCC-01, on April 1st, 2012) also stated:

a. Every three months (time for closing stock), condition of stock balance for CPO sustainable should not be negative b. The arrangement of incoming and dispatch CPO make possible of sustainable CPO delivery higher than stock

balance at that time. It should not be happened at the end closing stock and it can be proved that stock for sustainable CPO is positive.


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

SOP of Trading Administration (SOP/STPPOM-LOG-018), section 5.2.6 stated that logistic issue DO to buyer, the information are: name and address of vendor, name and address of buyer, type of product (CPO, PK, shells), amount of tonnage, Number of certificate, number of DO, stamp of “PT STP Cert. Mutu-RSPO/022 CPO/MB or PK/MB”.


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

POM STP did not have Kernel Crush Plant.

Status: Not Applicable

4 Sales and goods out

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

SOP of Trading Administration (SOP/STPPOM-LOG-018), section 5.2.6 stated that logistic issue DO to buyer, the information are: name and address of vendor, name and address of buyer, type of product (CPO, PK, shells), amount of tonnage, Number of certificate, number of DO, stamp of “PT STP Cert. Mutu-RSPO/022 CPO/MB or PK/MB”. OFI-2013.06: POM STP needs to provide simulation of SCCS claim implementation with supply chain model which regulated in the procedure for all selling documents.


5 Training

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

Training of SCCS on August 15th, 2013. The presenter: Eka Amana. The participants: 8 people. The content of training: SOP of weigh operational, FFB receiving, excessive production, grading, training, dispatch, CPO/PK, SCCS certification system, SCCS Mass Balance module.


6 Claims

6.1 The facility shall only make claims regarding the use of or support of RSPO certified oil palm products that are in compliance


ASSESSMENT REPORT


with the RSPO Rules for Communications and Claims.

Reference in the SOP of Trading Administration (SOP/STPPOM-LOG-018) such as all RSPO certification standards, including RSPO Rules on Communication and Claim.



ASSESSMENT REPORT


3.3. Conformity Checklist of Certificate and Logo Use Surveillane-1

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

S-1 Since receive RSPO certificate on November 30th 2012, PT Sarana Titian Permata have never gotten requests for certified products from the buyer. There is no use of logos that can be applied.

N/A

Status: NOT APPLICABLE

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


N/A


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


N/A


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


N/A



ASSESSMENT REPORT


3.4. Summary of RSPO Partial Certification.

Total companies observed (0.5 √Y) Where Y is the total of uncertified RSPO registered company

2.1

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

All subsidiaries of Wilmar International Ltd. planned to be RSPO-certified like description in Time Bound Plan

√

Status: Full compliance

2.2

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


√


6.3

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


√


6.4

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.


√


7.3

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


√


7.5

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


√


7.6

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


√


PT. MUTUAGUNG LESTARI

ASSESSMENT REPORT


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

3.5.1 Identification of Findings, Corrective Actions and Observations at Stage 2

CAR No

Ref Std Finding Area Grade Time

Limits Corrective Action Observation Status Closing Date

2012.01 Major

2.1.1

Compliance with the Regulation –

There are several regulations which

are applying and has yet to be

observed by the Company, such as:

1. The Company has not been able

to show evidence that it has

already obtained the basic permit

(Land Clearing) in the

construction of palm oil plantation

of STP.

2. There was found diesel fuel

spillage contaminated to soil

directly at POM diesel fuel tanks

in-accordance with Government

Regulation (PP) No. 18 of 1999

in conjunction with Government

Regulation (PP) No.85 of 1999.

estate

and Mill

Major STP should review the applicable

regulatory requirements related to

permit Land Clearing and

management of hazardous waste.

May 11, 2012

Basic of land clearing (LC) can be

showed from IUP (Izin Usaha

Perkebunan or Plantation Business

Permit) No. 525/109/EK/2007 the

first Point issued by Head of

Seruyan on March 13 2007 is stated

PT Sarana Titian Permata to be

permitted to establish (construction)

the oil palm Plantations.

May 19, 2012

The Company has installed nozzle

stopper and made a concrete floor

on secondary containment to avoid

direct soil contamination

Closed May 19th 2012

2012.02 Minor

6.1.1

Management of Social Impacts - In

social management plan The

Company has a CD program, but

there is not enough evidence that the

Company has involved the

participation of the affected

communities in the preparation of the

estate

and Mill

Minor S1 The Company must prepare CD

program by involving the

aspiration of the people

20 August 2013

Plan of Community Development program has involved impacted community participation. The company has accommodated the aspiration from the community through a proposal which submitted by the community and it will be then

Closed August 20th

2013


ASSESSMENT REPORT


CAR No

Ref Std Finding Area Grade Time

Limits Corrective Action Observation Status Closing Date

plan.

evaluated by the company for activity which required by the community.

2012.03 Minor

6.9.2

Preservation of Rights of

Reproduction – Based on the field

visit and interviews with Sprayers in

Blok E4/5, there is no evidence that

the employees are aware of policy on

the protection of rights of reproduction

estate

and Mill

Minor S1 The Company shall communicate

the rights of reproduction to all

female employees.

20 August 2013 Spraying and fertilization workers at the field have understood about the policy of reproduction rights protection, period leave, pregnant, and maternity leave granting. The company provides health service both for permanent workers and non-permanent workers.

Closed August 20th

2013

2012.04 Minor

5.3.1

Treatment of hazardous Waste- The

Company has had mechanism of

transportation of hazardous waste,

however, there is inconsistency in the

implementation.

Mill Minor S1 The Company shall conform the

implementation of hazardous

waste transportation with the

mechanism being prepared

20 August 2013 Based on the study of document and field observation at the field, the company has implemented the mechanism of waste delivery from POM to the Hazardous Waste Temporary Warehouse at STP-2 Estate in accordance with the exist procedure.

Closed August 20th

2013


ASSESSMENT REPORT


3.5.2 Identification of Findings, Corrective Actions, Observations at Surveillance 1

No. RSPO Non conformity Grade Area Limit Time Corrective Action Observation Status Closed

2013.01 Major 4.7.1

The implementation of Occupational Health & Safety policy and Occupational Health & Safety Management System Based on the field survey at the warehouse and workshop at STP 1, STP 2, and POM STP, all workers have been completed with standard PPE. However, the company cannot prove that safety equipments (PPE) for guest were available at the working area (mill and estate). For example: agrochemical warehouse, Hazardous Waste Temporary Warehouse, mixing area, and POM.

Major Estate and mill

23 October 2013

PT STP must have the evidence of Occupational Health & Safety program policy implementation.

Root cause: PPE was not available for guest because there was no stock of PPE for guest. Problem solving: To provide proper PPE for guest (visitor) at high risk area such as mill, workshop, chemical warehouse, fertilizer warehouse, Generator House and Hazardous Waste Temporary Warehouse. Preventive action: PPE for Visitor is available and adequate. October 14th, 2013 Based on the improvement that has been submitted to the auditor team in the form of PPE compliance for visitor such as: Ear muff, Safety shoes and chemical mask (STP1 and STP2). Meanwhile, the availability of PPE at POM STP is: Helmet, Safety shoes, dust masks, chemical mask, ear plug (POM STP). Therefore, the compliance status is CLOSED.

Closed 14 October 2013


ASSESSMENT REPORT



2013.02 Minor 4.7.2

Workers Medical Check Up The company has composed health medical checkup program for its workers such as MCU two times in a year and special medical checkup once a year. The company also showed MCU report and audiometric checkup in 2013. However, there was no enough evidence that the checking of cholinesterase for spraying workers and fertilization workers has been regularly conducted in accordance with the determined program (once a year) as stipulated in the Regulation of Labor Minister number 2 year 1980 concerning Medical Check Up for Workers.

Minor Estate and mill

Surveillance-2 PT STP must conduct a routine medical checkup by doctor for workers at the station or high risk area.

Root cause: Special medical checkup was not conducted because out of regent stock for Cholinesterase laboratory checking. Problem solving: To conduct special medical checkup such as cholinesterase for worker at spraying section, manuring section, welder, and operator of boiler. Preventive action: To ensure that special medical checkup is conducted once a year. 14 October 2013 The evidence of improvement to special medical checkup (cholinesterase) for spraying workers, fertilization, and welder at Estate STP1, STP2, and STP3 by licensed doctor Company Hygiene & Occupational Health. The result of medical checkup on September 22nd, 2013 (The result of test by accredited laboratory) that its value met the normal measuring standard/threshold such as for



ASSESSMENT REPORT



female (3.930 – 10.800 U/L) and male (4.620 – 11.500 U/L). Status of compliance: CLOSED.

2013.03 Minor 4.7.6

The Equipment of First Aid Emergency was available at the working location. Based on the field survey, First Aid Emergency boxes were available at high risk building with A box category (the number of worker <25 people). However, at the time of survey, First Aid Emergency box was not complete in accordance with the Regulation of Labor Minister number 15 year 2008 concerning First Aid Emergency, such as: warehouse (Estate and mill).


Surveillance-2 PT STP must have and complete the equipment for Occupational Health & Safety program and First Aid Emergency equipments in the working area in accordance with the list that has been previously composed.

Root cause: First Aid Emergency equipments were not following the Regulation of Labor Minister because the procurement of First Aid Emergency boxes was not communicated with EHS so equipments were not similar with the regulation. Problem solving: 1. To identify the need of First

Aid Emergency according to the location and number of operational workers at this area.

2. To adjust the need of First Aid Emergency with the Regulation of Labor Minister number 15 year 2008 concerning First Aid Emergency, such as: warehouse (Estate and Mill)

Preventive action: To conduct a routine monitoring to the completeness of First Aid Emergency equipment. To ensure that First Aid



ASSESSMENT REPORT



Emergency kit similar with the Regulation of Labor Minister number 15 year 2008 concerning First Aid Emergency. October 14th, 2013 The company has presented the evidence of improvement related with the compliance of First Aid Emergency as stipulated in the Regulation of Labor Minister number 15 year 2008. Based on this improvement, the need of First Aid Emergency has been completed and in accordance with the valid regulation for POM STP area: office, Workshop, Laboratory and Engine Room. Estate area: Workshop, warehouse, Daycare, generator house and Water Treatment Plan Compliance status: CLOSED.

2013.04 Minor 5.3.1

Storage of Hazardous and Toxic Waste Based on the field survey, there was used oil which stored in unlicensed area at STP-2 Estate


Surveillance-2 PT STP must ensure that Hazardous and Toxic Waste was managed in accordance with the valid regulation.

Root cause: Workshop STP 2 was moved so licensed Hazardous Waste Temporary Warehouse area was not used anymore and new unlicensed liquid Hazardous Waste Temporary Warehouse was built. Problem solving:

OPEN


ASSESSMENT REPORT



To submit the revision of Hazardous Waste Temporary Warehouse permit by submitting the new Hazardous Waste Temporary Warehouse. Preventive action: To store Hazardous and Toxic Waste at licensed Hazardous Waste Temporary Warehouse. October 16th, 2013 The company deliver the evidence of Minutes of Meeting of Field Verification related with the Permit of Hazardous and Toxic Waste Temporary Storage from the Environmental Agency of Seruyan Regency (The number of assignment letter: 660/677/BLH.I/IX/2013) on September 4th, 2013. In this letter, additional location plan for Hazardous Waste Temporary Warehouse at PT Sarana Titian Permata is 4 points (POM, STP-1, STP-2, and STP-3) and it is completed with the coordinate of location. It showed that the company still process the regulation compliance to get the permit of The new Hazardous Waste


ASSESSMENT REPORT



Temporary Warehouse as the commitment to the responsibility of waste management. There was official license issued by the relevant agencies, so the compliance status of this improvement is still OPEN.


ASSESSMENT REPORT


3.5.3 Opportunity for Improvement

No Ref Std Descriptions

OFI-2013.01 Minor 4.3.1

Marginal Land PT STP should have the synonym of soil type as published by the Soil Research Center, FAO, and USDA to the result of conducted survey.

OFI-2013.02 Minor 4.3.4

Peat water level The company needs to add weirs and water level gauges to consider the deployment of peat and its range.

OFI-2013.03 Major 4.7.1

The Implementation of Occupational Health & Safety Policy The company needs to conduct safety induction to each visitor who comes to the working location at the mill and estate.

OFI-2013.04 Minor 4.7.8

A Routine Review of Accident at Work The company has an opportunity to increase the performance by adding a point about accident at work in the previous month in the monthly meeting of Guiding Committee of Occupational Safety & Health at the estate and mill.

OFI-2013.05 Minor 6.2.2

Record of aspiration and response. PT STP need to ensure that each aspiration from community and related party is responded in accordance with the determined procedure and it should be well documented.

OFI-2013.06 SCCS Clausal

4.1 Module E

Selling and Delivery of Material POM STP need to provide a simulation related with the implementation of SCCS claim with the determined supply chain model in the procedure for all selling document.

3.5.4 Noteworthy Positive Components

No Descriptions

1. The company has composed an organization that responsible to the implementation of P&C RSPO well.

2. The company has composed a sustainable financial plan.

3. The company has implemented the Technique of Cultivation and Management well.

4. The company has a quite good commitment in the management of High Conservation Value.


ASSESSMENT REPORT


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

Issue from the Public (Institution/NGO/Community)

Response from the Management Response from the Auditor

Tuesday, August 20th, 2013 Social, Labor, and Transmigration Agency, Seruyan Regency (The Head of Placement, Training, and Monitoring of Labor Department). 1. PT Sarana Titian Permata has complied with manpower

regulation. 2. A routine obligation of monitoring has been submitted by

the company such as Guiding Committee of Occupational Safety & Health report every three months and an obligation report of manpower. However, report submission is often late.

3. Several points have not been completed yet related with the specific competence of worker such as certificate of welder.

4. The company has had an expert of General Occupational Health & Safety.

5. The company has paid the salary by referring to the Minimum Wage of Oil and Gas Sector in Central Kalimantan Province in 2012 for the realization in 2013.

6. Relation and coordination between the company and Labor Agency need to be intensively increased.

7. To involve Labor and Transmigration Agency in any labor activity such as proactive training and coordination.

1. The company will submit the report of Guiding Committee of Occupational Safety & Health and report of obligatory on time.

2. The company has had 6 certified welders at STP

POM, namely: Sutrino, Sarifudin, and Muhalih; at the estate: STP 1; Zarkani, STP 2: Jajang STP 3 Sukarman B Hajaring. Minutes of Meeting and Certificate of Welder is attached.

3. The current staff of Labor Agency is still new. The

company has not introduced yet to the new current staff. It will be immediately conducted. Relationship with the former Labor Agency staff is relatively good.

In the future, we will involve Labor and Transmigration Agency in training, counseling of labor and socialization of new regulation.

The company needs to increase coordination and communication with related agency about the obligation and information in the management of palm oil plantation.

Tuesday, 20 August 2013 Environmental Agency, Seruyan Regency (The Head of Agency, Head of EIA Permit Department, The Head of Government Regulation Department). 1. The company has had a document of Environmental

Impact Analysis such as EIA for activity at the estate and

All positive issues.


ASSESSMENT REPORT




mill. 2. The company has had a permit of liquid waste utilization

according to the Decree of Regent number 65 year 2013. 3. The company has had the Storage Area of Hazardous and

Toxic Waste in accordance with the Decree of Seruyan Regency number 395 year 2011 and the use of Hazardous and Toxic Symbol and Hazardous and Toxic Waste has followed the regulation.

4. The company has routinely reported the environmental management and monitoring (RKL/RPL) every semester and has reported Hazardous and Toxic Waste every three months and it has been determined according to the related regulation. However, report submission is often late.

5. PT STP has a quite wide conservation area and well managed. It helped the government to maintain the area that needs to be preserved to reduce environmental impact.

6. Principally, Environmental Agency of Seruyan Regency supported PT Sarana Titian Permata to achieve certificate of ISPO.

Tuesday, 20 August 2013 Forestry and Plantation Agency, Seruyan Regency (The Head of Agency, The Head of Forestry and Plantation Plan Department). 1. The result of Plantation Business Assessment of PT

Sarana Titian Permata on March 15th, 2013 showed that the company has predicate Class III (moderate) according to the Decree of Seruyan Regent number: 188.44/168/2013.

2. The company has a Permit of Plantation Business

1. The company has submitted a revision of Plantation Business Permit to the Seruyan Regent number 08/STP/Adm/BM/VI/2013 on June 10th, 2013. Until now, the process has reached economy bureau of the Secretary of Seruyan Regency.

2. The company has submitted quarterly progress report

of plantation business to the Forestry and Plantation Agency, Seruyan Regency, the receipt of report is attached from t Seruyan Regent and Forestry Agency of Seruyan Regency. I this point, the community

The company needs to increase coordination and communication with related agency about the obligation and information in the management of palm oil plantation.


ASSESSMENT REPORT




(number: 525/109/EK/2007, on March 13th, 2007) for the estate ± 19.911 Ha. It is recognized that in the plantation business permit documents, the company has not included yet the plant capacity. Related to this point, the company should submit a clarification letter and statement about the legality of permit for POM capacity to the Plantation Agency so the agency can issue a Recommendation Letter for this permit.

3. The company has not reported yet the Plantation Business Development Report every semester.

4. The company should immediately have partnership pattern with the community in surrounding.

5. The company should immediately completed data which needed by the Forestry Ministry related with the process of forest area acquisition permit in accordance with the valid regulation.

6. Principally, Forestry and Plantation Agency Seruyan Regency supported PT Sarana Titian Permata to achieve certificate of ISPO.

difficult to get the candidate of small scheme holding estate because the status of land in surrounding is a Production Forest (according to the Decree of Forestry Minister number 529 of 2012). The result of coordination meeting with the government of Seruyan Regency on August 21st, 2013 stated that land procurement will be handled by the government of Seruyan Regency.

3. It will be then immediately and submitted to the

Forestry Agency.

Wednesday, August 21st, 2013 Tanjung Rangas Village The community in Tanjung Rangas Village appreciated the donation that has been given by the company. Now, they hope that the process of scheme smallholding estate in their village can be immediately finished so it can help to improve the economy of the village.

PT STP has conducted some efforts for the development of scheme smallholding estate in accordance with the Regulation of Agricultural Minister number 26 year 2007 through meetings with related institution such as Seruyan Regent and Forestry Agency of Seruyan Regency. In this point, the community is difficult to get smallholding estate area because the status of land around the company is Production Forest (according to the Decree of Forestry Minister number 529 of 2012). The result of coordination meeting with the government of Seruyan Regency on August 21st, 2013 stated that land procurement will be handled by the local government of Seruyan Regency.

The company needs to increase the coordination and communication with impacted community in surrounding related with the development of information in the management of palm estate.


ASSESSMENT REPORT


4.0 CERTIFIED ORGANISATION'S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

4.1 Formal Sign-off of Assessment Findings

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

Signed on behalf of:

Sarana Titian Permata

Mutuagung Lestari

Sustainabilty Controller

Lead Auditor

Simon Siburat

Yudwi Wisnu Rahmanto

Thursday, 17th October 2013

Thursday, 17th October 2013


ASSESSMENT REPORT


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

No Institution/NGO/Community Address Phone/Email Consultation

type Date of Contact

1 Labour agency

Kuala Pembuang, Seruyan District, Central Kalimantan

Province

- Consultation

Meeting August 20th

2013

2 Environmental agency


Province

- Consultation

Meeting August 20th

2013

3 Forest and plantation Agency


Province

- Consultation

Meeting August 20th

2013

4 Tanjung Rangas village

Seruyan District, Central

Kalimantan Province -

Consultation Meeting

21st August

2013

5 Save Our Borneo (NGO)

Sampit, Central Kalimantan Province

+6281352752775 By phone 21st Augustus

2013

6 Head of Dewan Adat Dayak

Sampit, Central Kalimantan Province

+6281352753414 By phone 21st Augustus

2013


ASSESSMENT REPORT


DATE August 19 – 24th 2013 AUDITOR

PLANNED TIME

ACTUAL PROGRAM

PROCESSES / CLAUSES TO BE AUDITED YWR MM DAN SM SP

Monday 19/08/2013 07.00-08.00 08.00-10.00 11.30-12.00 14.00-17.00

Monday 19/08/13

07.00-09.00 09.00-10.30 11.30-12.00 14.00-17.00

Travelling Jakarta - Sampit Travelling Sampit – PT STP Site Opening Meeting Dokumen verification

All Team

Tuesday-wednesday

20-21/08/2013 08.00-12.00

Tuesday-Wednesday 20-21/08/13 08.00-12.00

Stakeholder Consultation Document review:

Record for information and response

1.1; 1.2

√ √

√

√

14.00-17.00 14.00-17.00 Fulfilment of regulation 2.1 √ √

Legal and land tenure 2.2; 2.3 √

Long-term economic feasibility 3.1 √

Best Practices (harvesting, spraying) 4.1; 4.6 √

Land and water conservation 4.2; 4.3; 4.4; 7.2; 7.4

√

Nursery √

Planting and maintenance √

Integrated pest management 4.5 √

Occupational health and safety 4.7; 4.8 √

CSR/CD and environment 5.1; 6.1; 7.1; 7.7 √ √

Fire prevention and suppression 7.7; 5.5 √

HCV 5.2; 7.3; √

Waste and pollution management 5.3; 5.4; 5.6

Land application

Community development 6.7; 6.8; 6.9; 6.10; 6.11

√ √

Responsibility for workers 6.5; 6.6 √ √

Communication, information, and consultation with community

6.2; 6.3; 6.4; 7.5; 7.6

√ √

Continuous Improvement 8.1 √ √ √ √

Supply Chain SCCS √

Thursday 22/Agu/2013 08.00-12.00 14.00-17.00

Thursday 22/08/13

08.00-12.00 14.00-17.00

Field inspector (Estate I) Verification for field observation

All Team

Friday 23/Agu/2013 08.00-11.00 14.00-17.00

Friday 22/08/13

08.00-12.00 14.00-17.00

Field inspection (Estate II) Verification for field observation

All Team

Saturday 24/Agu/2013 09.00-11.00 15.00-16.00

Saturday 24/08/13

09.00-11.00 15.00-16.00

Closing Meeting Travelling to Jakarta

All Team

Appendix 2. Assessment Program


ASSESSMENT REPORT


Appendix 3. Glossary

AMDAL : Environmental Impact Assessment

APD : Personal Protective Equipment

B3 : Hazardous Waste

BOD : Biological Oxygen Demand

COD : Chemical Oxygen Demand

CPO : Crude Palm Oil

CSR/CD : Corporate Social Responsibility/ Community Development

CBD : Convention On Biodiversity

GRK : Green House Gasses

NGO : Non-Governmental Organization

HGU : Land Use Right

HIRARC : Hazard Identification Risk Assessment And Risk Control

IK : Working Instruction

WWTP : Waste Water Treatment Plant

RSPO : Roundtable On Sustainable Palm Oil

JAMSOSTEK : Social Security Insurance For Workers

OHS : Occupational Health And Safety

KER : Kernel Extraction Rate

LC : Land Clearing

HCV : High Conservation Value

OER : Oil Extraction Rate

P2K3 : Committee For Occupational Health And Safety

IPM : Integrated Pest Management

PK : Palm Kernel

PKB : Perjanjian Kerja Bersama (labour Agreement)

RKL/RPL : Environmental Monitoring And Management Plan

SOP : Standard Operating System

STP : Sarana Titian Permata

FFB : Fresh Fruit Bunches

UKL/UPL : Environmental Management Efforts/ Environmental Monitoring Efforts

UMR : Regional Minimum Wage

UMSP : Plantation Sector Minimum Wage

Documents

Stage-1 [ ] Stage-2 []...PT. MUTUAGUNG LESTARI ASSESSMENT REPORT SPO – 4006a.5 i Prepared by Mutuagung Lestari for STP POM, PT Sarana Titian Permata – Wilmar Int Ltd TABLE OF CONTENT