maju aneka sawit pom pt maju aneka sawit

RSPO Principles & Criteria Main Assessment Report

Report Number CU817193

RSPOPC-SUM-REPORT.F01 (3.0) January 2016

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Control Union (Malaysia) Sdn. Bhd. B-3-1, Prima Klang Avenue, Jalan Kota KS/1,41100, Klang, Selangor. Malaysia.

Tel: +603-3377 1600 / 1700

RSPO PRINCIPLES & CRITERIA PUBLIC SUMMARY REPORT

MAIN ASSESSMENT

Indonesia

MAJU ANEKA SAWIT POM PT MAJU ANEKA SAWIT

2016

Report prepared by: Muhd Jamalul Arif (Lead Assessor)

Certification decision by: Terence Ang (Certifier)

Certifying Office

Control Union (Malaysia) Sdn. Bhd. B-3-1, Prima Klang Avenue, Jalan Kota KS/1,

41100 Klang, Selangor, Malaysia [email protected]

Tel: +603-3377 1600 / 1700

Control Union Certifications Control Union Certifications is a member of the Control Union World Group - an international

inspection and certification body. CUC performs assessments and certification in many agricultural

based fields such as FSC, RSPO, and Organic production, Sustainable Textile Production, Organic

Exchange, GLOBALGAP, HACCP, BRC, GMP and GTP.

CUC is accredited by the Dutch Council of Accreditation (RVA) on the European quality standard EN 45011 for the inspection and certification of CUC Organic program (according to the EU regulation 2092/91) and GLOBALGAP program. When requested a copy of the accreditation certificate can be

obtained from CUC.

Control Union (Malaysia) Sdn Bhd is a registered affiliate member of RSPO and is a private limited company owned by the Control Union World Group based in Malaysia. Control Union (Malaysia)

Sdn Bhd is authorized to conduct and issue certification on behalf of RSPO and Control Union Certifications.

RSPO Membership Number 8-0025-06-000-00

RSPO Approval Date 12/01/2006

Affiliate Membership http://www.rspo.org/en/member/339

mailto:[email protected]

http://www.rspo.org/en/member/339




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Table of Contents

PART 1: SCOPE OF THE CERTIFICATION ASSESSMENT AUDIT .............................................................. 4

1.1 COMPANY AND CONTACT DETAILS ...................................................................................................... 4 1.2 RSPO MEMBERSHIP & CERTIFICATION DETAILS .................................................................................... 4 1.3 MAIN ASSESSMENT DETAILS .............................................................................................................. 4 1.4 ASSESSMENT TYPE ............................................................................................................................ 4 1.5 LOCATION OF THE PALM OIL MILL ....................................................................................................... 4 1.6 PALM OIL MILL OUTPUT AND APPROXIMATE TONNAGES CERTIFIED ........................................................... 5 1.7 GENERAL DESCRIPTION OF SUPPLY BASE .............................................................................................. 5

1.7.1 Location of the Supply Base ............................................................................................... 5 1.7.2 Statistics of the Supply Base and Estimated Tonnes of FFB produced per year ............... 6 1.7.3 Conservation and HCV Area (Ha) ....................................................................................... 6 1.7.4 Percentage of Planted Oil Palm by different Age Ranges ................................................ 6 1.7.5 Calculation of the Number of Production Units (N) to Sample for the Mill ..................... 6

1.8 PROGRESS OF ASSOCIATED SMALLHOLDERS OR OUT-GROWERS, IF APPLICABLE TO THIS ASSESSMENT ............. 7 1.9 LOCATION MAP FOR THIS CERTIFICATION UNIT (SEE APPENDIX 1) ........................................................... 7

PART 2: PARTIAL CERTIFICATION ........................................................................................................ 7

2.1 MANAGEMENT STRUCTURE ............................................................................................................... 7 2.2 NON-COMPLIANCE IDENTIFIED WITH 2.1 ABOVE ................................................................................... 7 2.3 SUMMARY OF THE TIME BOUND PLAN ................................................................................................. 8 2.4 UN-CERTIFIED UNITS OR HOLDINGS .................................................................................................... 9 2.5 SUMMARY OF THE FINDINGS FOR PARTIAL CERTIFICATION ..................................................................... 10 2.6 PARTIAL CERTIFICATION AUDIT AGENDA ............................................................................................ 10

PART 3: AUDIT PROCESS.................................................................................................................... 11

3.1 ABOUT THE CERTIFICATION BODY ..................................................................................................... 11 3.2 AUDIT TEAM ................................................................................................................................. 11

3.2.1 Qualifications of the Lead Auditor ......................................................................................... 11 3.2.2 Qualifications of the Assessment Team ................................................................................. 12

3.3 AUDIT METHODOLOGY.................................................................................................................... 14 3.3.1 General Overview ............................................................................................................ 14 3.3.2 Assessment agenda for this Audit ................................................................................... 15

PART 4 ASSESSMENT FINDINGS ........................................................................................................ 16

4.1 LEAD ASSESSOR’S SUMMARY AND RECOMMENDATION FOR CERTIFICATION ............................................. 16 4.2 SUMMARY OF THE FINDINGS BY PRINCIPLES AND CRITERIA .................................................................... 16

Principle 1: Commitment to Transparency ..................................................................................... 17 Principle 2: Compliance with Applicable Laws and Regulations .................................................... 18 Principle 3: Commitment to Long-Term Economic and Financial Viability ..................................... 20 Principle 4: Use of Appropriate Best Practices by Growers and Millers ......................................... 21 Principle 5: Environmental Responsibility and Conservation of Natural Resources and Biodiversity ........................................................................................................................................................ 26 Principle 6: Responsible Consideration of Employees and of Individuals and Communities by Growers and Millers ........................................................................................................................ 32 Principle 7: Responsible Development of New Plantings ................................................................ 36 Principle 8: Commitment to Continuous Improvement in Key Areas of Activity ............................. 37

4.3 NON-CONFORMITY RAISED DURING THIS AUDIT AND ANY FROM THE PREVIOUS YEAR, IF APPLICABLE ......... 38 4.3.1 Non-Conformities Identified during this Audit ...................................................................... 38 Non-were raised during this audit. ................................................................................................. 38 4.3.2 Non-Conformity Identified during the last ASA, not applicable for MA ................................ 38




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Non-were raised during the last audit. ........................................................................................... 38 4.3.3 Observations Raised During this Audit .................................................................................. 38 Non-were raised during the last audit. ........................................................................................... 38

4.4 ISSUES THAT WERE RAISED DURING THE STAKEHOLDER CONSULTATION, IF ANY ......................................... 38

PART 5: RSPO SUPPLY CHAIN CERTIFICATION ................................................................................... 41

5.1 POM INCLUDED IN THE SCOPE OF THE AUDIT ..................................................................................... 41 5.2 CONFIRMATION OF THE COMPANY’S SUMMARY OF ANNUAL CERTIFIED VOLUME OF RSPO CERTIFIED PALM

OIL AND PALM KERNEL OVER A SPECIFIED PERIOD ...................................................................................... 41 5.3 SUMMARY REPORT INCLUDING A BRIEF DESCRIPTION OF THE SCOPE OF CERTIFICATION ............................. 42 5.4 MONTHLY RECORDS OF CERTIFIED AND UNCERTIFIED FFB RECEIVED SINCE THE LAST AUDIT ........................ 42 5.5 MONTHLY RECORDS OF CERTIFIED FFB, CPO AND PK SINCE THE LAST AUDIT ........................................... 42 5.6 RECORDS OF CERTIFIED CPO & PK SOLD UNDER GREENPLAM TO BUYERS SINCE THE LAST AUDIT, IF ANY....... 43 5.7 RECORDS OF CERTIFIED CPO & PK SOLD UNDER UTZ ETRACE TO BUYERS SINCE THE LAST AUDIT, IF ANY ...... 43 5.8 NON-CONFORMITIES IDENTIFIED DURING THIS AUDIT ............................................................................ 44 5.9 DESCRIPTION OF THE ORGANIZATIONAL MANAGEMENT SYSTEMS ............................................................ 44 5.10 FINAL CERTIFICATION DECISION BY CONTROL UNION FOR THE RSPO SCCS AUDIT OF THE POM .............. 44

PART 6: CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY ........... 45

6.1 DATE OF NEXT ASA ........................................................................................................................ 45 6.2 DATE FOR CLOSURE OF NON-CONFORMITIES ...................................................................................... 45 6.3 SIGNING BY THE CLIENT ................................................................................................................... 45 6.4 SIGNING BY THE LEAD AUDITOR ........................................................................................................ 45 6.5 SIGNING BY THE CERTIFIER ............................................................................................................... 45

PART 7: APPENDICIES ........................................................................................................................ 46

APPENDIX 1: LOCATION MAP FOR THIS CERTIFICATION UNIT .......................................................................... 46 APPENDIX 2: LIST OF ABBREVIATIONS ........................................................................................................... 48




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PART 1: SCOPE OF THE CERTIFICATION ASSESSMENT AUDIT

1.1 Company and Contact Details

Company Name: PT Maju Aneka Sawit

Business Address: Spring Tower 04-42, Jl. K.L. Yos Sudarso, Tanjung Mulia, Medan 20241, Indonesia.

Contact Person: Dr. Gan Lian Tiong

Office Telephone: +62 61 661 5511

E-Mail: [email protected]

Web Site: -

Other Certifications Held: RSPO SCCS, ISCC

1.2 RSPO Membership & Certification Details

RSPO Membership Number: 1-0054-08-000-00 (PT MAS is subsidiary of PT Agrowiratama)

Registered Client Name: PT. Agrowiratama

Certificate Number: CU-RSPO-817193

Start Date Of Certificate: 17/06/2016

End Date Of Certificate: 16/06/2021

Date Of Original Certification: June, 17th 2011

Scope: Certification of the Palm Oil Mill and Supply Bases

Type Of Certification: Single site

Duration Of Certificate: 5 Years from date of certification

1.3 Main Assessment Details

Dates Of This Audit: 29th Feb – 4th March 2016

Audit Number: Re- certification Audit

1.4 Assessment Type

This is a recertification assessment based on Principles and Criteria (2013) for the Production of Sustainable Palm Oil - Endorsed by the RSPO Executive Board and accepted at the Extraordinary General Assembly by RSPO Members on April 25th 2013 (Including Major Indicators endorsed by RSPO Board of Governors on 15 November 2013) and RSPO Supply Chain Certification Standard & System 2014 was used as audit standard.

1.5 Location of the Palm Oil Mill

Name Palm Oil Mill

Mill Capacity

Location GPS Reference

(POM) MT/Hour Address Longitude Latitude

Maju Aneka Sawit POM

45

Desa Tanah Putih, Kecamatan Telawang, Kabupaten Kotawaringin Timur, Propinsi Kalimantan Tengah, Indonesia

112° 38’ 51.4” E 2° 28’ 41.4” S

mailto:[email protected]




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1.6 Palm Oil Mill Output and Approximate Tonnages Certified

Figures below are from:

Only from certified supply bases (Y/N). YES

Combining certified with uncertified supply bases (Y/N). NO

If the Mill is receiving FFB from uncertified supply bases outside the audit scope, such uncertified sources is highlighted under the following sections as seen applicable:

a. PART 1, Section 1.7 – General Description of Supply Base, b. PART 2: Partial Certification, Section 2.4 – Uncertified Units or Holdings, c. PART 5: RSPO Supply Chain Certification of this report

Projected Production from the last 12 Months (MT) Jun’15 – May’16

Actual Production for this Audit Year May’15 – Apr’16 (MT)*

Projected 12 Months (MT) Forecast Certified in this Report

Jun’16 – May’17

FFB CPO PK FFB CPO PK FFB CPO PK

243,525.67 65,679.30 15,811.68 192,375.47 48,748.51 11,113.52 223,644 60,384 15,096

1.7 General Description of Supply Base

The supply bases are PT MAS – Est Tanah Mas, PT GAP – Est Alam Sahara, Kas Desa Tanah Putih dan Kas Desa Penyang. Basically MAS POM only have 1 supplying estate, FFB from Estate Alam Sahara (PT GAP) has been redirected to MAS POM since PT GAP do not has its own mill. The rest of supply bases are from Kas Desa. Total HGU area has been captured in table 1.7.1 as below.

1.7.1 Location of the Supply Base

OPP Oil Palm

Plantation Location GPS reference Area Summary (Ha)

Name Address Longitude Latitude Total Mature

OPP 1 Tanah Mas Estate (PT. Maju Aneka Sawit)

Desa Tanah Putih Kecamatan Telawang Kabupaten kotawaringin Timur Propinsi Kalimantan Tengah Indonesia

E 1120 38’ 40.3” S 20 28’ 38.8” 9,296.45 6,171.91

OPP 2

Alam Sahara Estate (PT Globalindo Alam Perkasa)

Desa Natai Baru Kecamatan Mentaya Hilir Utara Kabupaten Kotawaringin Timur Propinsi Kalimantan Tengah Indonesia

E 1120 44’ 46” S 20 36’ 48.3” 10,328 2,603.82

OPP 3 Kas Desa Tanah Putih

Desa Tanah Putih, Kecamatan Telawang, Kabupaten Kotawaringin Timur,Propinsi Kalimantan Tengah Indonesia

E 112° 38' 18.06" S 2° 26' 44.74" 10 10

OPP 4 Kas Desa Penyang

Desa Penyang, Kecamatan Telawang, Kabupaten Kotawaringin Timur, Propinsi Kalimantan Tengah Indonesia

E 112° 35' 10.46" S 2° 31' 16.00" 10 10

TOTAL 19,644.45 8,795.73




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1.7.2 Statistics of the Supply Base and Estimated Tonnes of FFB produced per year

OPP Oil Palm Plantation Estimated FFB/Year (MT) Planting Years Cycle (Years)


156,222.27 2005 -2015 25

OPP 2 Alam Sahara Estate (PT Globalindo Alam Perkasa)

67,081.80 2005 – 2016 25

OPP 3 Kas Desa Tanah Putih 160.40 2011 25

OPP 4 Kas Desa Penyang 179.00 2011 25

TOTAL 223,643.47

1.7.3 Conservation and HCV Area (Ha)

OPP Oil Palm Plantation Conservation Area (Ha) HCV Area (Ha) * HCV part of Conservation


- 90.49 No

OPP 2 Alam Sahara Estate (PT Globalindo Alam Perkasa)

1,118.71 - No

OPP 3 Kas Desa Tanah Putih - - N/A OPP 4 Kas Desa Penyang - - N/A

TOTAL 1,118.71 90.49

* Indicate if HCV area is part of the Conservation Area. If the HCV area is part of the Conservation Area, then “YES” otherwise, “No”

1.7.4 Percentage of Planted Oil Palm by different Age Ranges

OPP Planting Years by 5 year Ranges

2005-2009 2010-2014 2015-2016 Total

OPP 1 5,946.44 736.03 333.98 7,016.45

OPP 2 2,306.89 2,316.87 461.57 5,085.33

OPP 3 - 10 - 10

OPP 4 - 10 - 10

1.7.5 Calculation of the Number of Production Units (N) to Sample for the Mill

N = 0.8√Y, where “Y” is the number of units, with the result always to be rounded “up” to the next whole integer. Where only a sample of the supply base is assessed, units not previously assessed, or assessed earlier in the certification program, are to be preferred over those more recently assessed

For the Mill, how many units make up the production base?

Owned estates (Y) N = 0.8√Y Smallholders (Z) N = 0.8√Z

2 2 2 2

Explanation as to the selection of estates sampled

Sampling has been done from each categories of the supply bases which is 2 estates (0.8√2 = 1.131) and 2 smallholders (0.8√2 = 1.131). Both results have been rounded up to the next whole integer.




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1.8 Progress of associated Smallholders or Out-growers, if applicable to this assessment

Progress of associated Smallholders or Out-growers towards Compliance with relevant Standards - should be in accordance to the 3-year implementation plan, if applicable to this assessment

There is no an associated smallholder or out grower (Not applicable for this audit). The Kas Desas were certified as supply bases simultaneously with the estate during audit in 2014 using RSPO Principles and Criteria (2013) for the Production of Sustainable Palm Oil.

1.9 Location Map for this Certification Unit (See Appendix 1)

PART 2: PARTIAL CERTIFICATION

The rules for partial certification allow organizations that have a majority holding in and / or management control of more than one autonomous company growing oil palm to certify individual management units and / or subsidiary companies subject to certain rules.

2.1 Management Structure

Section Criteria Yes/No If “Yes” If “No”

2.1.1 Is the certified operation (POM and supply base as detailed above) a stand-alone operation and there are no other plantations or mills owned by the same company?

Yes Section 2 is N/A

Go to 2.1.2

2.1.2 Is the certified operation part of a simple structure of operations owned by one company?

Yes Go to 2.1.5 Go to 2.1.3

2.1.3 Are there statements of the ultimate controlling shareholders and directors in the managing agency company/companies:

a. Explaining the legal relationship and the management arrangements with the subsidiary companies and / or with any operating groups?

- Go to 2.1.4

Go to 2.2.1

2.1.4 b. A statement of commitment to complying with the spirit of the RSPO for all companies and subsidiaries involved with the growing of oil palm and for the production of palm oil?

- Go to 2.4 Go to 2.2.2

2.1.5 Is there a time bound plan in place for all subsidiaries, estates and palm oil mills?

Yes Go to 2.3 2.2.3

2.1.6 Is the parent company or one of its majority owned and / or managed subsidiaries a member of RSPO.

Yes

2.2 Non-compliance Identified with 2.1 Above

Section Non-compliance findings NC raised Category

2.2.1 There is no explanation as to the company’s structure and therefore it Is not possible to conduct an effective audit against the rules for partial certification.

- Major

2.2.2 There is no statement of commitment to complying with the spirit of the RSPO for all companies within the company structure.

- Major

2.2.3 There is no time bound plan in place for the certification for all subsidiaries, estates and mills.

- Major

2.2.4 No applicable membership of the RSPO. - Major




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2.3 Summary of the Time Bound Plan

Section Requirement Findings and any action required Compliance

2.3.1 Does the plan include all subsidiaries, estates and mills?

Not applicable (N/A). There is no subsidiary under PT Maju Aneka Sawit. All subsidiaries under PT Agrowiratama have been RSPO certified.

N/A

2.3.2 Is the time bound plan challenging? Age of

plantations. Location. Mill

development. Infrastructure. Compliance

with applicable law.

N/A N/A

2.3.3 Have there been any changes since the last audit? Are they justified?

N/A N/A

2.3.4 If there have been changes, what circumstances have occurred?

N/A N/A

2.3.5 Have there been any stakeholder comments?

N/A N/A

2.3.6 Have there been any newly acquired subsidiaries?

N/A N/A

2.3.7 Have there been any isolated lapses in the implementation of the plan?

N/A N/A

2.3.8 Has there been any systematic failure to proceed with the implementation of the plan?

N/A N/A

2.3.9 General statement as to progress made since the last audit?

N/A N/A




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2.4 Un-Certified Units or Holdings

NOTE: Companies may demonstrate compliance by clear evidence of a self-audit (i.e. an internal audit for all subsidiaries, estates and Palm Oil Mills)

Section Requirement Findings and any action required Compliance

2.4.1 Did the company conduct an internal audit? If so, has a positive assurance statement been produced?

N/A N/A

2.4.2 No replacement after dates defined in NIs Criterion 7.3 of:

Primary forest.

Any area identified as containing High Conservation Values (HCVs).

Any area required to maintain or enhance HCVs in accordance with RSPO criterion 7.3.

N/A N/A

2.4.3 Any new plantings since January 1st 2010 must comply with the RSPO New Plantings Procedure.

N/A N/A

2.4.4 Any Land conflicts are being resolved through a mutually agreed process, e.g. RSPO Grievance procedure or Dispute Settlement Facility, in accordance with RSPO criteria 6.4, 7.5 and 7.6.

N/A N/A

2.4.5 Any Labor disputes are being resolved through a mutually agreed process, in accordance with

N/A N/A




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RSPO criterion 6.3.

2.4.6 Any Legal non-compliance is being resolved in accordance with the legal requirements, with reference to RSPO criteria 2.1 and 2.2.

N/A N/A

TIME BOUNDP PLAN FORECAST FOR RSPO CERTIFICATION OF ALL PALM OIL MILLS & SUPPLY BASES

Palm Oil Mill Country Supply Bases (estates,

plantations, associations) Targeted RSPO

Certification Year Current Certification

Status as per this Audit

N/A N/A N/A N/A N/A

With reference to time bound plan, the following issues were reviewed openly with the Control Union audit team during the assessment and which may be in conflict with the rules for partial certification, if applicable

Name of Mill or Plantation *Area of concern (See examples below)

N/A N/A

Include any known concerns, media reports and major issues both present and from the past covering, for example:

Replacement of primary forest or any area containing HCV’s since November 2005.

Evidence of non-compliance with the law

Legal issues

Compensation payments

Social relations

Burning

Labor disputes

2.5 Summary of the findings for Partial Certification

The audit team assessed compliance with the above requirements during this audit. Failure to address any non-compliance identified may lead to certification suspension.

This unit audited is a subsidiary of PT Agrowiratama (RSPO membership: 1-0054-08-000-00). Therefore, the time bound plan is included in the parent company of PT Agrowiratama report. Nevertheless this unit has been assessed for its compliance against partial certification requirement and found to be in full compliance.

2.6 Partial Certification Audit Agenda

Date Location Agenda

- -




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PART 3: AUDIT PROCESS

3.1 About the Certification Body

Control Union Certifications is a member of the Control Union World Group – an international inspection and certification body. CUC performs Audits and certification in many agricultural based fields such as FSC, RSPO, and Organic production, Sustainable Textile Production, Organic Exchange, GLOBALGAP, HACCP, BRC, GMP and GTP. CUC is accredited by the Dutch Council of Accreditation (RVA) on the European quality standard EN 45011 for the inspection and certification of CUC Organic program (according to the EU regulation 2092/91) and EUREPGAP program. When requested a copy of the accreditation certificate can be obtained from CUC.

Control Union (Malaysia) Sdn Bhd is a registered affiliate member of RSPO and is a private limited company owned by the Control Union World Group based in Malaysia. Control Union (Malaysia) Sdn Bhd is authorized to conduct and issue certification on behalf of RSPO and Control Union Certifications.

3.2 Audit Team

Lead auditor: Muhd Jamalul Arif

Team member 1: Muhammad Syafiq Abd Razak

Team member 2: Baskaran Sankaran

Team member 3: Enjang Asri

3.2.1 Qualifications of the Lead Auditor

Requirement Qualifications

A minimum of post high school (post-secondary school) training in either agriculture/forestry, environmental science or social sciences;

Post graduated in Plantation Management and Cargo Surveying from local university.

At least 5 years professional experience in area of work relevant to the assessment (e.g., palm oil management; agriculture/forestry; ecology; social science);

Experience in auditing since 2011 in RSPO P&C, SCCS, GMP B2 & B3, ESCAS Animal Welfare RSPO P & C and Global Gap standards. Working experience in handling Q&Q survey for agricultural products such palm oil.

Training in the practical application of the RSPO criteria, and RSPO certification systems;

Involved in RSPO assessment since 2011. Member of CUC RSPO audit team. Involved in audits for P&C and SCCS conducted in Malaysia, Indonesia and middle east country.

Successfully completion of an ISO 9000:19011 lead auditors course;

Completed ISO 9001:2008 Lead auditor in 2011, ISO 19011 & 17021 in 2014.

Training in the practical application of RSPO certification systems.

Involved in RSPO assessment since 2011. Member of CUC RSPO audit team. Involved in audits conducted in Malaysia and Indonesia.

A supervised period of training in practical auditing against the RSPO criteria or similar sustainability standards, with a minimum of 15 days audit experience and at least 3 audits at different organizations.

Involved in RSPO assessment since 2011. Involved in audits conducted in Malaysia and Indonesia for more than 5 companies audits.

RSPO endorsed lead auditors course. Yes, successful passed on 2013.

Signed code of conduct. Yes

General knowledge of: Yes RSPO P&C standards. Yes CUC organizational structure. Yes




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CUC quality systems. Yes Lead auditor role. Yes Report writing. Yes Stakeholder consultation. Yes Certification decision process. Yes RSPO SCCS program manual. Yes CUC filing systems. Yes Correct use of RSPO trademarks. Yes History and objectives of RSPO. Yes CV available. Yes Completion of CUC RSPO lead auditor training. Yes

3.2.2 Qualifications of the Assessment Team RSPO Requirement Team Member Name Qualifications

Fluent in main local languages and English.

Baskaran Sankaran Fluent in English and Bahasa

Muhammad Syafiq Fluent in English and Bahasa

Enjang Asri Fluent in English and Bahasa Indonesia

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

Baskaran Sankaran Degree in Business Administration. Over 15 years conducting 2nd and 3rd party auditing for various industries.

Muhammad Syafiq Plantation background with more than 5 years working in various palm oil plantations. Completed RSPO P&C and SCCS lead auditor course in 2015. Well trained in agriculture and auditing.

Enjang Asri Graduated in Forestry from local Indonesia university. Well trained in social and environmental issue. Involved in auditing from Timber, Organic certification and RSPO P&C since 2014.

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

Muhammad Syafiq Plantation background with more than 5 years working in various palm oil plantations. Completed RSPO P&C and SCCS lead auditor course in 2015. Well trained in GAP, Peat Management, Pest Management and so on.

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

Baskaran Sankaran Degree in Business Administration. Over 15 years conducting 2nd and 3rd party auditing for various industries. Master in Occupational Safety and Health and experience in ISO 18001 auditing for past 5 years.


Enjang Asri Graduated in Forestry from local Indonesia university. Well trained in social and




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environmental issue. Involved in auditing from Timber, Organic certification and RSPO P&C since 2014.

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



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

Baskaran Sankaran Degree in Business Administration. Over 15 years conducting 2nd and 3rd party auditing for various industries. Master in Occupational Safety and Health and experience in ISO 18001 auditing for past 5 years.



Economic issues. Muhammad Syafiq Plantation background with more than 5 years working in various palm oil plantations. Completed RSPO P&C and SCCS lead auditor course in 2015. Well trained in GAP, Peat Management, Pest Management and so on.





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3.3 Audit Methodology

3.3.1 General Overview

The Audit was carried out in conformity with the procedures as laid down in the CUC Procedure Manual and the RSPO Program Manual for the auditors and Certifier. During the Audit the qualified CUC auditors used the RSPO standard as endorsed for the country in which the audit took place and recorded their findings. Workers and local communities were interviewed and evidence sought to confirm ongoing compliance to include:

Chemical stores. Storage, MSDS leaflets, Herbicide mixing areas, PPE, Ventilation, Security.

Field inspections. Herbicide application programs. Harvesting sites and efficiency. Fertilizing operations. SOP’s. Soil maps. Land preparation. Ground cover. IPM. First aiders and boxes. Ground cover. Soil erosion. Field observations of all operations.

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

Re-planting sites. Zero burn.

HCV’s. Identification. Management plans. Environmental Impact Assessments. Implementation.

Riparian zones. Width. Current and future management. Non maintenance regimes.

Water management. Water courses. Water monitoring.

Road maintenance. Run off.

Social amenities. Social Impact Audits.

Local communities. Contributions made. Employment opportunities. Social impacts. Complaints procedures.

Workshops. Oil traps. Safe working environment. PPE. Diesel tanks. Environmental waste management.

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

Documentation review. The Palm Oil Mill audit verification included the following activities:

Mill and workshop inspections. Documentation review & worker interviews.

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

OSH. Training. Management structure. First aiders.

Full document review. Completion of the checklist. Review and documentation of evidence. All aspects of RSPO P&C’s applicable.

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

Compliance against the RSPO SCCS certification scheme. Verification: Verification of implementation was done through field observations, workshop and chemical store inspections, worker and community interviews and mill inspections as summarized above.




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3.3.2 Assessment agenda for this Audit

Date Location Main activities

29/02/2016 (Monday)

N/A Traveling day (Overnight Palangkaraya)

01/03/2016 (Tuesday)

N/A 07.00 – 1200: Traveling Palangkaraya – PT. MAS

PT. MAS Meeting Room

1300 – 1330: Opening meeting (All auditors)

Introduction by team leader

Presentation by respective managers

Presentation of Palm Oil Mill source of FFB by respective managers.

Tanah Mas Estate

1330 – 1700: Document review (All auditors)

Document review [EIA, SIA, CIP, Business Plan]

Complaint mechanism / Request & respond

02/03/2016 (Wednesday)

Kas Desa Tanah Putih

0800 – 1200: Document review (Syafiq & Enjang)



Kas Desa Penyang

0800 – 1200: Document review (Jamal & Baskaran)



POM meeting room

1030 – 1200: Stakeholder consultation meeting (Jamal & Enjang)

Stakeholder interview etc.

Alam Sahara Estate

1300 – 1700: Document review (All auditors)



03/03/2016 (Thursday)

Palm Oil Mill, Estates & Kas

Desa.

0800 – 1200: Site verification (Jamal & Baskaran)

Mill inspection

Workshops

Stores

POM application

Safety and Health / PPE / Signages

Waste Management / Environment Estates & Kas Desa (Syafiq & Enjang)

Best agricultural practices

Manuring, Spraying, Harvesting,

HCV / Conservation Area

Legal compliance / boundary

Chemical / Pesticide / Fertilizer Stores

Worker’s facilities (housing, pay, etc)

MAS POM 1300 – 1700: Document review (Syafiq, Baskaran & Enjang)



1300 – 1700: Document review (Jamal)

Supply Chain Certification Assessment of the POM (RSPO SCCS)

04/03/2016 (Friday)

PT. MAS Meeting Room

0800 – 0900: Preparation for closing meeting (All auditors) Additional field visits and meetings with managers as necessary 0900: Closing meeting

Presentation of findings by the audit team

Questions and answers




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Final summary by team leader End of assessment

N/A 1000 onwards: Traveling to Palangkaraya (Overnight Palangkaraya)

05/03/2016 (Saturday)

N/A Traveling Palangkaraya – Jakarta / Malaysia.

PART 4 ASSESSMENT FINDINGS

4.1 Lead Assessor’s Summary and Recommendation for Certification

The mill and supply bases visited (as per the above Tables 1.5 and 1.7.1) and were assessed at field, office, facilities, stores and a document review was carried out in accordance to the RSPO principles and criteria. Specific evidence was recorded for estates and mill. Interviews with Estate Managers, Mill Manager and staff took place in both formal and informal environments and worker interviews were conducted at the supply base and the mill. The management is highly committed in maintaining the RSPO system by adopting to continuous improvement programs. The company has established continuous improvement and effectively documented. There was no complaint received during the audit or during the field assessment when interviewing with the external stakeholders. The management continuously monitors the established KPI / objectives that significantly rule the achievement of company’s corporate policy on RSPO. The mill is fully verified for RSPO SCCS system verification and it is found to be in full compliance. See PART 5 below.

It is therefore the recommendation of the lead assessor that:

A certificate of compliance is maintained. Signed:

Name: Muhd Jamalul Arif Date: 22nd May 2016

4.2 Summary of the findings by Principles and Criteria

Over the 5 year period of the life of the certificate, there will be 4 annual surveillance audits

Identified Non-Conformities and noteworthy Positive and Negative Observations.

The RSPO require that this report contain findings by each principle and some example criteria. Please see table below.




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Principle 1: Commitment to Transparency

Criterion by Audit

Summary

The company is well maintaining the copies of requests & responses and such records are kept and available for viewing. Humas team has common system with parent company on publicly available documents which have been listed in their SOP. Requests made by stakeholder were responded to and all these are well documented. Adequate information available for confidential information that being listed as publicly available.

MA 1.1 The company has established SOP “Konsultasi Dengan Stakeholder” document reference # MAS-SOP/01.01.8.8 dated on 22/04/2010 which was last updated 05/03/2015. The mill has established list jointly with Tanah Mas Estate titled “Stakeholder PT Maju Aneka Sawit” updated 12/01/2016 prepared by Ms. Meria PNS and acknowledged by General Manager Mr Rusli Salim. The stakeholders list being updated 4 times in year. The list contains contact information from various background such as local communities, government agencies, workers union and NGO’s.

Stakeholder meeting has been conducted regularly. Last meeting was jointly held on 30/11/2015 by mill and estate. Meeting minutes, attendance sheet with pictorial report of the meeting is available and sighted during the audit with 61 external stakeholder attended. The meeting minutes shows meeting agenda has covered providing information company policy, various company SOP that relevant to stakeholders, environmental management, social impacts, HCV, RSPO P&C, ISPO and Q&A session.

There is a SOP established for stakeholder to get information from the company titled” Permintaan Informasi Dan Stakeholders” document # MAS-SOP/01.01/8.6 dated 23/05/2010 updated on 01/03/2014. Above procedures outlined process for request information, processing the request, list information that can be provided, providing information and record management. Information requested by stakeholders are recorded in logbook titled “Records of information Requests” document # MAS-SCH/02.01/1.1. Sighted the estate log book which has 19 entries and the latest entry is on 28/11/2015 by Mr. Hendrie from Province Environmental Officer in regards to permission to visit estate for any open fire. Respond column in the log book has stated that the officer was accompanied by estate PIC that he wishes to inspect.

MA 1.2 Standard Operation Procedure titled “Company Confidentiality” document # MM-POD/01.01/1.1.0 dated 07/07/2007 updated 01/08/2015 has outlined company documents and information that can be made public. List of documents identified in the above SOP includes, land use right, management structure, social activity, health and safety plan, HCV document, complaints and grievances, negotiation procedure, certifications and human right policy. The company has established human right policy titled” Kebijakan Hak Asasi Manusia” dated 02/05/2014. Sighted all company polices are displayed in office notice board.

MA 1.3 The company has established code of ethical policy titled” Kode Etik” dated 02/05/2014, document no. MM-POD/01.01/1.2.8. The policy has identified 6 ethical conducts for all its employees, monitoring statement and implementation. This policy has been communicated to employees as evident from the training record for 80 workers on 22/02/2016 where “Kebijakan Kode Etik Training” been explained to attendees by Mr. Fernando.S (Safety & Certification).




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Principle 2: Compliance with Applicable Laws and Regulations

Criterion by Audit

Summary

The mill and estates have demonstrated compliance to all applicable local, national and international laws. Legal ownership of land and its land use is clearly demonstrated through the respective land titles. Boundaries have been clearly demarcated. There have been no land disputes or claims involving the mill and estate.

MA 2.1 PT.Maju Aneka Sawit has updated regulation list (both national and international) which covers estates and palm oil mill. The list so called “List/Rekap Undang-Undang/Peraturan yang Berlaku Bidang Ketenagakerjaan, Bidang Perkebunan, Bidang Pertanahan, dan Bidang Kehutanan’’ period July- December 2015. This list will be updated every semester. Below the examples of legal compliance:

Compliance of Permentan no.26/Permentan/OT.140/2/2007. The agriculture permit (Surat Izin Usaha Perkebunan) is also available. SIUP no 143/BIMUS/KTW/VII/2005 dated 19th July 2005.

Compliance of PP no 40 of 1996 regarding the land permit is available. HGU (Hak Guna Usaha) Certificate no 41 dated 3rd October 2007, issued by Head of Land Department of Kotawaringin Timur (Ir. Priambodo, MM).

Compliance of manpower ministry regulation no KEP.186/MEN/1999 related to fire mitigation in the workplace. The compliance regarding this regulation is proved by making analysis for land fire in every semester and fire mitigation team has been established in PT MAS.

Tax payment compliance sighted PBB (Pajak Bumi Bangunan) payment dated 8th June 2015.

Compliance with PP no 50 of 2012 related to SMK3 implementation. The company doesn’t have SMK3 Certificate but the company has established P2K3 (Health and Safety committee) and has been implementing good health and safety principle. OSH establishment letter from Department of Social, Workforce and Transmigration of Kotawaringin Timur no. KEP.560.566/032/WAS-KK. P2K3/II/2016 dated 11th February 2016. SOP for health and safety no MAS-OSH/01.01/1.0 DATED 7TH July 2007. Medical check-up for workers handling chemicals is conducted on monthly basis and blood test on annual basis. These monthly check-ups are carried out by the doctor / paramedic stationed on estate and the annual check-up is carried out by the external medical laboratory.

Document on chemical usage and handling, Safety Operating Procedure, Work Instruction, Hazard Identification and Risk Assessment, Safety Data Sheet are available at PT. MAS & PT. GAP.

Compliance with Ministry of Environment Decree no 13 year 1995. The company does the laboratory test every semester to check the emission and ambient test. In RKL and RPL Report July- December 2015, all parameter (SO2, NO2, CO, etc.) are under the standard threshold

Boiler men and electricians in MAS POM have been certified by Kemnakertrans RI (Ministry of Manpower and Transmigration of Indonesian Republic) to perform their jobs with certificate numbers no. Ser 1073/OPK3/B.I/IX/2015 (MR. ARIVIN) and no : 10.1159/PNK3–PUBT/OB–I/VIII/10 (MR. SAMSUL ARIFIN).

Compliance to Article 3 of Safety Act, air quality (ambient and emissions), noise, odour and vibration are measured every 6 months. There is a management plan to control air quality level (include noise level, odour, vibration, air ambient and emission). PPE usage as per




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requirement of the station/work place is provided to the workers.

All related to legal compliance in PT. Maju Aneka Sawit and PT Globalindo Alam Perkasa will be handled by Public Relation (HUMAS). The regulation changes and the regulation list will be updated every semester by Humas. Sighted evidence ‘’Rekap Analisa Peraturan Perundang-undangan Republik Indonesia PT Maju Aneka Sawit’’ Semester II year 2015 dated 11th January 2016 and ‘’Rekap Analisa Peraturan Perundang-undangan Republik Indonesia PT Globalindo Alam Perkasa’’ Semester II year 2015 dated 11th January 2016.

The company hold certification internal audit annually. The internal audit covers estates’ facilities, certification documents compliance (company policies, legal compliance, maps, monitoring document, etc). Internal audit has been done by Audit and Certification Team from Head Office. Sighted ‘’Internal Audit Report’’ PT. MAS dated 11th - 19th January 2016.

MA 2.2 PT. MAS has two land titles by means that they are operating the palm oil activities within those total land areas. Sighted the correspondence land title No. 41 dated on 3 October 2007 for the land areas about 11.887,77 Ha acknowledged as PT. Maju Aneka Sawit (MAS) and its supply base. Valid until 20-09-2037. The building permit for PT MAS POM is verified; IMB no 642/75/UPT/CK-PU/2008 dated 24th March 2008 issued by Bupati Kabupaten Kotawaringin Timur. Sighted HGU (Hak Guna Usaha) Certificate no 41 dated 3rd October 2007, issued by Kepala Kantor Pertanahan Kotawaringin Timur (Ir. Priambodo, MM). After that, the company proceed to register HGU permit to BPN (National Tenure Agency), it was showed by Land “B” checking by HGU committee report no 77/PPTB/X/2005 dated 20th October 2005. It was showed by “Ijin Prinsif” for PT GAP no 525.26/299/VII/EKBANG/2004 dated 15th July 20014 which was valid from 15th July 2004 – 15th July 2006. Sighted HGU PT GAP No 44 dated 3 January 2008 with area 10,328 Ha. There is no land dispute in PT. Maju Aneka Sawit however SOP of Land Compensation (MM-SOP/01.01/1.0) 3rd revision date 15/04/2014 indicates company procedure to handle land conflict and compensation made according to FPIC. No pending land compensation and all compensation made based on FPIC process without further conflict and dispute. No customary rights land present or has been compensated in PT. MAS.

MA 2.3 There is no customary land in or surrounding all the estates. There are also no land disputes or claims involving these estates. All SOP, EIA, SIA, HCV Report and Stakeholder Consultation reports are available in Bahasa Indonesia which are easy to be understood. The flow of the land compensation found effective e.g Received information of land – checking the legal ownership – land survey and measurement – review whether it is suitable to be compensated or not – negotiation – if they agree the company will complete all documents to proceed the compensation – compensation payments. The negotiation involved related stakeholders such as Chief of the village, Sub-District Chief, PT MAS and the local community.




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Principle 3: Commitment to Long-Term Economic and Financial Viability

Criterion by Audit

Summary

A documented business plan (10 years) available both at mill and estate. The annual budget includes of FFB yield/ha, OER, CPO yield/ha and cost of production. Seen the top management able to demonstrate attention to economic and financial viability through long-term management planning. Replanting programme for the estate from 2013-2024 is also available for estate with replanting activities.

MA 3.1 Business management plan (provided for 10 years) is available during audit time. 3 documents related with the budget is “Master Copy Verifier” for 10 years production budget, “Annual Budget” for every year budget and “Monthly Management Report” specified actual cost on monthly basis. Also sighted document “Monthly Expenditure Report” in November, December & January to verify the production trend. In April 2016, sighted huge budget allocated due to company introducing new practices in mill namely drying empty bunch fibre before burning in boiler. The system called “EB Dryer” estimated to be operated in September 2016 involving total cost Rp. 314,720,000 Also sighted huge allocation in April 2016 to add 8 new worker housings in mill. Total cost budgeted Rp. 871,200,000

Table 1: Production of FFB and CPO for 3-year Projection

2017 (MT)

2018 (MT)

2019 (MT)

FFB 256,714 278,590 305,869

CPO (24-26%)

66,791 72,412 79,412

PK (5.75%) 14,761 16,018 17,587

Table 2: Production Cost/Kg FFB (For Mill)

Month Actual (Rp) Budget (Rp)

November 2015 86.41 50.90

December 2015 98.10 58.96

January 2016 61.29 79.79

This budget is well captured in “Master Copy Verifiers” PT. Maju Aneka Sawit (Table 3, 4 & 5 – Indikator Ekonomi untuk Kebun & PKS PT. MAS – CPO & PK). Documents no. RSPV/MAS/1.0 issued date on 20 Jan 2016. Land area also been identified based on production area in budget. In projection up to year 2023, area statement sighted is increasing due to current land planted is below total HGU area. Plan for both Kas Desa are included in estate business management plan as well. There is “Budget Meeting” to review and finalise the annual budget to cover

all facilities under PT. MAS. Last budget meeting review held on 21 July 2015

involved mill managers. Budget has been reviewed in management budget

meeting and been finalised in 17/10/2015. PIC for preparing the budgets is

Head of Administration.




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No replanting planned for next 5 years. Nearest replanting programme in 2024 for block AK (H51) & AH (H41, H42 & H43) year of planted in 1998 & 1999. At this moment, company will do replanting after 25 years (Mineral Soils). There is evidence that replanting will be reviewed based on the yield/ha of FFB. Company have policy “Penanaman Kembali” – Policy Perkebunan 2: Persiapan Lahan dan Penanaman-7; Date on 19/06/2012.

Principle 4: Use of Appropriate Best Practices by Growers and Millers

Criterion by Audit

Summary

The mill, estate and Kas Desa have a complete set of GAP, POD and SOP which is being strictly adhered to and continuously monitored. Soil fertility is being maintained in the fields and IPM is being implemented in all the estate and Kas Desa. There is a comprehensive OSH policy and is being implemented throughout the all operating units. Improvement sighted in the identification and assessment with HIRARC. Trainings are being carried out as per the Annual Training Plan.

MA 4.1 All related SOP in Maju Aneka Sawit POM are listed under: SOP - Standard Operational Procedure POD - Corporate Policies (General) OSH - Occupational Safety & Health Procedure

SOP for safe working practices in the mills is available, such as Safety Operating Procedure and Work Instruction. Furthermore, the Safety Signboard, emergency procedure, emergency alarm and emergency escape plan (evacuation map) are available in mill. During field visit to the mill, all workers are using PPE according to risk identified in each station. Estates maintained 4 types of documented procedure, Policy of Document (POD), Group Agriculture Policy (GAP), Standard Operation Procedure (SOP) and Safety Operating Procedure (SaOP). Sample of riparian zone management procedure well captured in “Pengelolaan Areal Penyangga Tepian Sungai” No. MAS-SOP/0.01/9.1 dated on 23 Mei 2009 is available. Updating all the SOP’s (translation and draft) will be handled by Head Office and will be monitored by internal audit. The internal audit team consist of:

Internal audit (HO Medan) Internal control (IC Department) Cross Block (Top Management) Operational audit (Operational HO)

Revised POD no. POD/Plant.Div/5.11 on for “Oil Palm Planting in New Plantation Area” dated 29 February 2016 was verified during the audit Addressing any non-compliance related to SOP implementation will be taken by each estate to take appropriate corrective action as per the recommendation by internal audit team. Sighted SOP related to third party FFB sourcing ‘’Purchasing Outside FFB’’ No.MM-SOP/03.01/2.2.1. January 15, 2015. At this moment, MAS POM only received from internal supplier (no third party supplier) as verified from the approved FFB supplier list.

MA 4.2 Soil and leaf sampling was carried out at planned interval. This company have records and maintain the activities to manage soil fertility as per SOPs below:

MM-SOP/S&P. R&D.O.01/WI.01 ‘’Leaf Sampling’’ dated on




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01/01/2015 MM-SOP/S&P. R&D.O.01/WI.02 ‘’Soil Sampling’’ dated on

01/01/2015 There is evidence that SOPs have been implemented and monitored. Data as per below:

Leaf and soil sampling result by R&D Cross block from estate management Cross block by Agronomist visit.

Fertilizer input, it refers to the “2015 Final Fertilizer Recommendations for PT. Maju Aneka Sawit” on 06th November 2014 (conducted by R&D Dept.). Report from R&D would be set a baseline for making a fertilizer recommendation for year 2015.The recommendation was monitored by estate management in the “Plan and Realisation of Manuring Programme’’ Period of 2015 sighted in all estates including Kas Desa. Company has a program for application of POM by products such as Boiler Ash and POME (Land Application). Both are to replace potassium, moisture retention and as supplement from inorganic fertilizer. Company also has strategy to maintain long term soil fertility.

MA 4.3 Sighted soil maps are available in all estates as per requirement by their policy MAS-OPI/02.01. /1.1 ‘’Land Code’’.

Table 3: Estates Soil Series (Planted Area)

Tanah MasEstate

Alam Sahara Estate

Kas Desa Penyang

Kas Desa Tanah Putih

Mineral 5,040.88Ha (71.84%)

3,292.44Ha (64.74%)

10Ha (100%) 10Ha (100%)

Sandy 117.10Ha (1.67%)

426.63Ha (8.39%)

Nil Nil

Peat 1,858.47Ha (26.49%)

1,366.26Ha (26.87%)

Nil Nil

SOP on strategy for planting system in slope ‘’Conservation on Slopes Area’’ on 02/02/2012 (2nd Revision) has indicates all scope such as classification of slope and how to handle the slopes areal. There is no slope in estate as per soil and topographic maps, the plantation is relatively on flat land. The topography map showed- maximum undulating is 2-6 Degree, aside all roads are well maintained and records available. Road maintenance programme sighted in ‘’Rencana & Realisasi Kerja Perawatan Jalan (Grader & Bomag)’ Tahun 2015/2016. Company has respective long term plan for peat area according to the SOP (No. MAS-SOP/01.01/2.3.2), ‘Prosedur & Standar Pengamatan Penyusutan Gambut pada Areal Tanam’ (09th Sep 2015) which is in line with the RSPO BMPs on peat. Sighted the monitoring records in “Format Monitoring Laju Penyusutan Gambut”. Estate will compile and communicate with R&D Department every Semester (refer “Analisa dan Rekomendasi Penyusustan Gambut PT Mas Periode 2015 - Semester 2). Estate also has action plan to minimize the subsidence such action plan in “Analisa dan Rekomendasi (Action Plan) Penyusustan Gambut PT Mas Periode 2015 (Semester 2). Estate focus to minimize the subsidence by controlling the water level.




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There is also management strategy to handle the fragile and problems soils. Company has been establish policy and SOP as per below to handle this issue:

Polisi Perkebunan 2: Kacangan Penutup Tanah – 4 (07/09/2012)

Polisi Perkebunan 7: Aplikasi Pupuk Mineral pada Tanaman kelapa Sawit – 1 (15/10/2010)

Polisi Perkebunan 7: Program Pemupukan TBM (21/05/2012)

Polisi Perkebunan 7: Aplikasi Decanter Solid untuk Kebun – 4 (10/12/2007)

Polisi Perkebunan 7: Perawatan Defisiensi Cooper (Cu) – 3 (11/07/2001&20/11/2002)

MM-SOP/S&P.R&D.O.01) Laporan Kunjungan Agronomi dan Rekomendasi Pupuk Tahunan – 4 (07/09/2012)

MA 4.4 Water management plan has been sighted in PT. MAS from implementation of SOP MAS-SOP/01.01/9.5 ‘’Pengelolaan dan Pemantauan Lingkungan’’. Date on 02/01/2012 and MAS-POD/01.01/5.4.0 Pengelolaan Air di Perkebunan dan Pabrik (01/04/2014). Sighted the “Water Management Plan PT. Mas were covered info as per below:

Identification of water sources Efficient use of water Renewability of water source Impacts on catchment area and local stakeholders Access of clean drinking water all year round for

stakeholders Avoidance of surface and ground water contamination

Mill water discharge monitoring through ‘’PKS MAS Management & Monitoring Plan 2015-Kelestarian Lingkungan’’. Compliance to local regulations mandatory maximum level is < 5000 ppm (BOD). Mill has legal permit ‘’Surat Izin Bupati Kotawaringin Timur # 660/38/BLH-PP/LA/IV/2012’’ to apply final discharge to land application. Sample of few months results were verified there is no exceedance of threshold level.

Table 4: Result of Final Discharge Analysis Result (July – Dec 2015) Water is extracted from nearby river Sg. Rinjau for processing and domestic usage. Water is treated at water treatment plant with monitoring from internal laboratory chemist. Water usage for processing, boiler, biogas and domestic are also been monitored.

Table 5: Summary of Water Usage VS FFB Processes (July – Dec 2015)

Month pH TSS BOD COD

July 15 7.33 44 85.60 240

Aug 15 8.42 38 21.44 42.88

Sep 15 8.31 41 44.88 179.52

Oct 15 7.82 46 49.73 198.91

Nov 15 7.47 44 64.00 192

Dec 15 7.12 42 41.18 205.90




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Month Water consumption

[m3/MT FFB]

Total FFB processed

[MT]

July 15 13,557 14,393

Aug 15 12,176 12,357

Sep 15 14,139 14,964

Oct 15 19,193 19,483

Nov 15 15,551 17,387

Dec 15 16,285 19,380

MA 4.5 IPM plan are documented in company GAP Manual for IPM: POD/01.01/2.6.4.1 – Rat Control by Using Owl dated on 16/07/2012

POD/01.01/2.6.2 – Handling of Caterpillar Attack dated on 26/11/2012

The procedure has justifies method of treatment such as: Biological Control Chemical Control

It was sighted no significant pest attacks in both Estates. Beneficial plant continuously maintained in all field in various species such as Casseia Cobanensis to control pest and diseases. No Rat damages (observed at the reception bay and at harvesting area). No pest problems exist in Tanah Mas and Alam Sahara Estate (e.g. Rat).

MA 4.6 Seen the SOP for herbicide spraying (POD/01.01/2.5.4). Spraying technic continuously improved to minimize the risk to human & environmental. Estates strictly following “Spraying Programme” recommended by agronomist to prevent exposure to grass and parasite. Calibration of spraying equipment done according to supplier advice. No aerial spray applicable in all estates. Pregnant or breast feeding women strictly not allowed to handle chemical product and if diagnosed for pregnant, the worker will be transferred to another lighter work and non chemical related work in field. Results of interview with chemicals handling operators on-site reveal that they have been trained before work. Seen the training records for spraying workers been periodically conducted. Cross check in training record for spraying workers, attended by 30 workers and conducted by Pak Imran Setiawan on 13 and 15 February 2016 and “Cara Pengendalian/Penyimpanan Racun seen the training records for 6 persons. Conducted by Pak Wiwik on 10 April 2015. The sprayers also can show understanding to the risk and consequences of chemical product handled. PPE are provided by company and are used as per the relevant recommendation in risk assessment. There are sanitation rooms available in each estate including PPE storage in each estate. No specific condition applied to damage PPE by company to all the workers. Medical surveillance carried out for all workers who handle chemicals on annual basis. Also there are monthly checked for workers handling pesticides by company’s doctor. The company’s doctor/ paramedic is a full time doctor stationed on estate. Annual blood test result showed no cholinesterase symptoms. Based on the latest blood test, none of the results are below the health standard. Field interviews with sprayers confirmed there were no complaints of breathing difficulties or abdominal cramps problems. Chemical storage sighted with well ventilation, lockable, able to retain spillage. MSDS & CSDS was in placed, correctly labelled and seen powder type




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of chemical stored above liquid type according to company SOP # MAS-SOP/01.01/3.4 ‘’Administrasi Gudang’’. Empty pesticides containers were collected by external party (PT. Nazar). Any related agreement in term of picking mechanism and payment has been declared through ‘Surat Perjanjian, No.002/SPK/MAS/I/2016’. There are programs to reduce pesticide usage such PT. MAS & PT. GAP are not using Paraquat in plantation operations since 2011 (POD/01.01/2.5.5 Rekomendasi Herbisida Untuk Pengendalian Gulma Tanpa Menggunakan Paraquat 03/01/2011). Company also establishment of the Integrated Pest Management (IPM) through maintaining the beneficial plant and the use of biological control (e.g. barn owl) as opposed to chemical control of pests. Implement early detection system by conducting census regularly to prevent the occurrence of uncontrolled pests and diseases.

MA 4.7 Company has established Health and Safety Group Policy ‘’Kebijakan Keselamatan, Kesehatan & Kebersihan Kerja’’ signed and approved on July 7, 2007 and last revised on 1 February 2011. Company also has SOP “Tata Cara Pembentukan P2K3 dan Komite K3 Lokal” dated 17 Feb 2014 where responsibility of each committee team was mentioned in the SOP. Risk analysis (HIRA) available and updated at all stations, include from receiving FFB until dispatch CPO and Kernel out from mill, related SOP ‘’Identifikasi Bahaya & Penilaian Resiko – K3’’ # MM-OSH/01.01/2.6 that covered hazard identification and Risk Assessment/HIRA-OSH that will be reviewed in yearly basis or if any accidents had occurred, company will review the risk assessments with action plans to prevent further recurrence. Last OSH meeting was held in year 2016 and being conduct monthly. Record of attendance available. Verified the accident and emergency procedure SOP no. - MM-OSH /01.01/2.7 dated 15 August 2015 well maintained and practiced in mill. Flow chart of emergency procedure is displayed at mill notice board to keep all workers aware. Record of accident and Lost Time Accident (LTA) were maintained by mill and estates and reported quarterly to related government agency according to local regulations (DINAS Sosial Tenaga Kerja dan Transmigrasi). Seen the latest report sent on 15/01/2016 ‘’Laporan P2K3 PT.MAS’’. No major accident case for 2015, it was shown that OSH target to have ‘’Zero Major Accident’’ achieved. During field inspection, first aid box is available at appropriate station and updated, described in ‘’Kartu Pemeriksa Kotak P3K’’. Sighted company has done noise level monitoring at MAS mill from ‘’Noise Level Map’ provided. As sample, noise level at Boiler Station = 75,8 dB and Sterilizer Station = 80,9 dbs. Baseline audiogram and occupational and medical history records kept for every employee in file no. MAS-OPI/03.01/3.14-Medical Checkup. That is includes ‘’Hearing Loss Prevention Audit’’ record was carried out by conducting Audiometric examination by Lab Prodia Palangkaraya. All workers are covered by Government-managed Insurance (BPJS Kesehatan & Ketenagakerjaan). Sighted the deduction was made on monthly workers salary as per local regulations. Appropriate medical treatment has been given to all employee who covered any accident or illness, ‘Laporan Pembayaran BPJS’ showing total bill of all employee.

MA 4.8 Training programme which is matrix format includes target group, instructor and plan to conduct from Jan – Dec 2016. Programme also divided by 4




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section: Training Agronomist – Harvester, Sprayer, Manuring & IPM Training Administration – All procedure training Training OSH – First aid, Fire Drill, OSH & ERP

General Training – C&G, SOP to stakeholders and MM Policy Training, committee gender, ERT Species and RSPO, ISCC & ISPO. Training records of all workers was maintained in individual file. Sample sighted for workers name, Pak Supriyanto (Harvester) have undergone 7 trainings for year 2015.

Principle 5: Environmental Responsibility and Conservation of Natural Resources and Biodiversity

Criterion by Audit

Summary

Environmental Impact Assessment has been carried out by the mill and estate. A comprehensive identification of all waste has been recorded and disposal of scheduled waste has been carried out by an approved and registered collector. Monitoring and analysis of waste is carried out regularly. The company is in full compliance to Principal 5 for this operating unit.

MA 5.1 The company has done environmental Impact Assessment in September 2008. The land has been leased to PT. Maju Aneka Sawit by Badan Pertanahan Nasional (National Land Agency). The EIA report titled ”Analisis Dampak Lingkungan Hidup” (ANDAL) Pembangunan Perkebunan Dan Pabrik Pengolahan Kelap Sawit” PT. Maju Aneka Sawit has covered 11,887.77 Ha and mill capacity 90 Ton FFB/Hour. This assessment report which was prepared in September 2008 has covered mill operation and also its effluent treatment plant. The EIA was conducted by external environmental consultant CV. Mitra Karya Prima Konsultant. Biogas Plant was commissioned in July 2012. Review on SEIA undertaken by the company from September 2012 to October 2012 which supervised by Team from Project Processing Department of Musim Mas Group for the construction of the Biogas Plant. The SEIA has taken into account impact to physical environment, impact to biological environment and social impact from the construction of biogas plant. Mitigation plan has been identified for significant negative impacts. The internal SEIA report dated 07/09/2012 prepared by Acting Mill Manager Mr. Syahbukit and acknowledged by Mr. Ahuat, Production Controller Region III. As for the Biogas Plant the company has already obtained approval from the local government “Ijin Mendirikan Bangunan (IMB)” Document # 648.3/745/KPPT/IMB/2012 dated 21 March 2012. Kas Desa Tanah Putih is a land belong to local community collectively which is headed by Mr Yohandi Ijam. The land size is 10 Ha. There is an agreement between PT. Maju Aneka Sawit (PT.MAS) represented by Mr. Surja, Director MAS and Kas Desa Tanah Putih represented by head of the Kas Desa Mr.Yohandi Ijam dated 30/09/2010. This project is treated as CSR programme for the company as it is in response to an application forwarded by the head of Kas Desa Mr Yohandi Ijam through a letter dated 20/09/2010 to the management of PT. MAS. The above agreement allows PT.MAS to clear the 10 Ha of land which is covered with bushes (as per photo SEIA report for the land) for the purpose of oil palm cultivation. According to the agreement the land shall managed in accordance with SOPs that applicable to PT.MAS. Initial assessment on the Kas Desa land was conducted in early January 2010 by company’s RSPO Staff Mr. Sigit Rudiharyono. Sighted report titled” Laporan Peninjauan Lokasi Pembangunan Kebun Kas Desa Tanah Putih” dated




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31/01/2010 for the above assessment. In addition to the above initial assessment, PT. MAS has conducted Social Environmental Impact Assessment (SEIA) for pre development, during development and after development of Kas Desa from January 2010 to June 2011. SEIA process was started before commencement of land earth work on Kas Desa Tanah Putih land in January 2010 and completed in June 2011. The SEIA report has concluded that there is no negative impact to environment in developing the Kas Desa Tanah Putih land due to company’s best practices in place and has positive social impact as it will increase income to the village development. Sighted submission to “Pemerintahan Kabupaten Kotawaringan Timur“on 20/05/2015 for document titled “Surat Penyertaan Kesanggupan Pengelolaan dan Pamantauan Linkungan Hidup (SPPL)

MA 5.2 Initial HCV assessment was conducted from 03 -13 July 2007, by company’s Head of Sustainability Department Dr. Gan Lian Tiong. Sighted “Penilaian Areal HCV PT. Maju Aneka Sawit” and “Penilaian Areal Penanaman Kelapa Sawit”. The HCV assessment done using rapid assessment method from toolkit HCV 2003. The report has concluded identification of HCV 1, HCV 3, HCV 4, and HCV 6 for entire PT.MAS. Second HCV assessment was conducted by independent environmental consulting body Aksenta in year 2009. The assessment report made recommendation to do monitoring for HCV 1, HCV 3 HCV 4 HCV 5 & HCV 6. HCV Re-assessment was done from February to March 2015 by Aksenta, an independent environmental consultant. The assessment which covered HCV1 to HCV 6 conducted by a team of 4 external HCV experts. The team leader from Aksenta have been licensed by the HCV Assessor Licensing Scheme (Provisional ALS15026PN). The HCV assessment was done using ‘Step-wise screening’ method using HCVRN 2013 guideline. Result from the latest HCV assessment above there have 4 type of HCV (1, 3, 4 & 6) consist of 13 different spot in total area of PT. Maju Aneka Sawit. Public consultation on HCV Identification has been conducted on 13 February 2015 and this has also been recorded on HCV Identification document of PT Maju Aneka Sawit, Aksenta, Maret 2015. Summary of HCV identified as follow: Table 6: PT. Maju Aneka Sawit HCV Presence Overview

Type of HCV Number of spots Location

HCV 1 4 Sungai Rinjau, Sungai Lais, Sungai Aba, Danau Aur and its boundaries.

HCV 3 1 Sari Mas Estate secondary peat swamp forest

HCV 4 6 Tanah Mas Estate at Sungai Rinjau, Sari Mas Estate at Secondary peat swamp forest and Sungai Lada, Bakung Mas Estate at Sungai Lais, Sungai Aba and Danau Aur.

HCV 6 7 Tanah Mas Estate cemeterty – Sandung, Kuburan Tua and Kuburan Tua (orang Penyang). Sari Mas Estate cemetery – Kuburan Tua and Sandung Keluarga Hapnani. Bakung Mas cemetery – Sandung Dusun Sakadua and Kuburan Tua Kampung Baampah.




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Total HCV area Tanah Mas Estate identified is 90.49 Ha. Summary of HCV identified at Tanah Mas Estate as: Table 7: Tanah Mas Estate HCV Presence Overview

Type of HCV Number of spots Location

HCV 1 & 4 1 Sungai Rinjau and its boundaries

HCV 6 3 Tanah Mas Estate cemeterty – Sandung, Kuburan Tua and Kuburan Tua (orang Penyang).

HCV Management and Monitoring Plan identified with the estate which management plan established by the estate based on the recommendation. The Management plan titled ”Rencana Pengelolaan Dan Pemantauan HCV” PT MAS for 2016. There is Gantt Chart in the management plan which explained implementation of action plan from Jan – Dec 2016. There have been a few rare, threatened and endangered species found. Based on IUCN’s category species, the following species are: Near Threatened (NT): Long Tailed Parakeet (Psittacula longicauda);

Black Hornbill (Anthracoceros malayanus); Scooty-capped Babbler (Melacopteron affine); Crab Eating Macaque (Macaca fascicularis)

Endangered: Proboscis Monkey (Nasalis larvatus); Agile Gibbon (Hylobates agilis)

This is documented on the report entitled Hasil Rekapitulasi Monitoring Satwa PT. MAS, April 2015 – April 2016). Protection of protected species is in line with Indonesian Law No. 5 of 1990 regarding Conservation of Natural Resources and Ecosystems related prohibition on capturing, injuring, killing, save the protected wildlife. And also Appendix Government Regulation No. 7 of 1999 on Protected Species List. Furthermore, PT MAS has SOP on “Pengelolaan dan Pemantauan Nilai Konservasi Tinggi (NKT) di Perkebunan Kelapa Sawit” No. MAS-SOP/01.01/9.2 dated 27 July 2009. Threats or risks from current or planned management activities to each HCV within the assessment area been identified and documented in the report entitled “Identifikasi Ancaman dan Sumber Ancaman HCV”. For example, based on the identification there are several threats like poaching, land clearing and logging by the communities. The company’s effort to mitigate threat to HCV area are as follow : installing signboard to prohibit poaching of protected species, Socialization to communities regarding prohibition of poaching and its sanctions and General Manager Instruction No.005/VI/GM/MAS/2014 regarding prohibition to catch, keep, collect or kill RTE species and the sanctions to all staff / workers who do not comply with those instructions as well as the instruction to post the pictures of protected animals according to Indonesian Regulation No. 7 In 1999, the IUCN and CITES. Sighted agreement between PT.MAS and Head Villages of Sebabi, Tanah Putih, Kenyala, Hanjalipan, Tangar, Baampah. Villages support company in monitoring and managing HCV area within PT MAS concession. Alam Sahara Estate (PT GAP), initial HCV assessment was conducted from 03 -




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13 July 2007, by company’s Head of Sustainability Department Dr. Gan Lian Tiong. Sighted “Penilaian Areal HCV PT. Globalindo Alam Perkasa” and “Penilaian Areal Penanaman Kelapa Sawit”. The HCV assessment done using rapid assessment method from toolkit HCV 2003. The report has concluded identification of HCV 1 and HCV 4 for PT.GAP. Second HCV assessment was conducted by independent environmental consulting body Gaia Commoditas in year 2011. The assessment result is no HCV area at Alam Sahara Estate. HCV Re-assessment was done March 2015 by Aksenta, an independent environmental consultant. The assessment which covered HCV1 to HCV 6 conducted by a team of 5 external HCV experts. The team leader from Aksenta has been licensed by the HCV Assessor Licensing Scheme (Provisional ALS15026PN). The HCV assessment was done using ‘Step-wise screening’ method using HCVRN 2013 guideline. Result from the latest HCV assessment above there is no HCV area in PT. Globalindo Alam Perkasa, Alam Sahara Estate. Nevertheless, there is HCV Management Area (HCV MA) to support HCV area outside Estate Alam Sahara.Total HCV MA area identified is 1,118.71 Ha. Summary of HCVMA identified as follow: Table 8: Alam Sahara Estate HCVMA Presence Overview

Indeks Location

1 Sungai Sampit upstream area and its boundaries

2 Sungai Binti and its boundaries

3 Sungai Sampit downstream area and its boundaries

4 Sungai Bengkariang and its boundaries

5 Peat area, measured depth 0.5-1.5m.

There is HCV Management Area identified with the estate which management plan established by the estate based on the recommendation. The Management ”Rencana Pengelolaan Dan Pemantauan HCVMA” PT GAP Alam Sahara Estate for 2016. In the management plan has included Gantt Chart in table 3 page 12 of the Management plan document. Monitoring of management area is done on monthly basis. The is a checklist titled “Form Pemantauan Satwa” which used for recording monthly monitoring. Last monitoring done was done on 05/01/2016 at location “Sungai bagian Hulu dan Sempadan” by Mr Ringgar. Sighted agreement between PT GAP and Head Villages of Natai Baru and Bagendang Tengah. Villages support company in monitoring and managing HCV MA area within PT GAP concession. The company also has conducts regularly HCV awareness briefing to its stakeholders. Sighted following records HCV briefing conducted to stakeholders. 22/12/2015 - conducted by Mr Firdaus and attended by 2 villagers. 23/12/2015 - conducted by Mr Firdaus and attended by 21 estate

workers. 24/11/2015 - conducted by Mr Ringga Patria and attended by 32

estate workers.

MA 5.3 In the mill, sighted the document titled “Identification of the Source of Waste from the Mill and Domestic”. Last updated on 15/01/2016. Identification based on each processing station from sterilizer station,




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pressing to handling the POME waste. Type of waste identified in mill such as empty chemical container, used PPE, used oil, clay bath water, boiler ash, palm shell, fibre etc.

Chemical containers were disposed according to the local regulation number 18 year 1999 regarding handling of schedule waste and regulation number 85 year 1999. Schedule waste at mill identified such as used rags, used filter, water treatment chemical containers, used PPE, oil drum and used battery. Mill has a license schedule waste stored (660/1723/BLH-Ek.SDA/IX/2015) as collecting point for license collector, PT. Nazar.

Document “Management and Monitoring Plan 2015” was available. The plan includes identification of waste, target, objective, how to mitigate, source location, time line, PIC and progress up to date. Sample of final discharge POME according to local regulation limit is 5,000ppm however PT MAS commitment to maintain all their final discharge below than 100ppm.

In Tanah Mas Estate, the waste products and source of pollution well identified in entire estate compound in document so called “Identification of Waste Sources”. This document includes sources of waste location such as office, clinic, workers housing, mosque, church, store (fertilizer, pesticide & spare part), mixing area, workshop etc.

Document also identified what kind of waste and category either it was schedule waste, re-useable waste or domestic waste. Schedule waste which required special handling been record and traceable. Sample of waste identified at estate such empty chemical container, used PPE, medical waste, used oil etc.

MA 5.4 The mill does not use diesel for its operations as it has biogas plant to generate electricity using methane captured form the effluent ponds. Since last January 2014, the company is using PME (Palm Methly Esther) to replace the usage of diesel. The ratio in using the PME is 0.07 litres/ton CPO.

Tanah Mas estate monitors its diesel usage on monthly basis. Following is sample monitoring records sighted for the estate for year 2015.

Table 7: Diesel Usage of Estates

Tanah Mas Estate Alam Sahara Estate

Month litres Month liters

July ‘15 612.43 July ‘15 732.86

Aug ‘15 337.34 Aug ‘15 1,566.79

Sep ‘15 150.53 Sep ‘15 1,517.57

Oct ‘15 542.63 Oct ‘15 1,993.72

Nov ’15 332.36 Nov ’15 2,574.32

Dec ‘15 8,581.42 Dec ‘15 34,779.98

The sharp increase in diesel usage in December 2015 due to shortage PME. The estate also has record of diesel usage per FFB metric ton for year 2015 recorded as 0.08323 liter/ Metric ton FFB.

MA 5.5 The company has established no open burning policy titled “ Kebijakan Zero Burning” dated 27 September 2007 signed by Mr Tan Tian Siang. The land preparation activity been outsourced to “Alam Subur Nusantara, CV through an agreement letter which was signed by PT.MAS and the contractor. In Phase 4 of the contract has stated the contractor need comply with all policies established by the company when land preparation activity is carried out. In




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the contract also specified in Phase 1 the contractor to do staking. Under company’s group agriculture policy on land clearing for plantation, POD/01.01/2.2.1, it has established procedure titled “ Pembersihan Areal Untuk Penanaman” dated 10 May 2013. Land clearing for replanting specified in the procedures as mulching using machinery. In clause 2.1.1.3 of the procedure has stated no fire to be used for land clearing. There is no evidence of open burning sighted during estate field visit.

MA 5.6 Mill’s polluting activities are assessed during the Environmental Impact Assessment Report (AMDAL) MM-AMD/02.02/1.0 which was done on September 2011. The AMDAL covers both the mills and estate. Mill’s activities that have impact to air, surface water quality, Soil, Biodiversity, etc, been assessed and reported in the EIA (AMDAL) report. Polluting activities which have negative impacts to environment are identified with mitigation measures in Environmental Management Plan (RKL). The management of PT. MAS has conducted SEIA for the Kas Desa Tanah Putih. The SEIA report has concluded that there is no negative impact to environment in developing the Kas Desa Tanah Putih Land due to company’s best practices in place and has positive social impact as it will increase income to the village development. There is submission to “Pemerintahan Kabupaten Kotawaringan Timur“ on 20/05/2015 for document titled “Surat Penyertaan Kesanggupan Pengelolaan dan Pamantauan Lingkungan Hidup (SPPL). On GHG emission, the company has established SOP # MAS-SOP/03.01/3.32.1 titled “Inventarisasi Dan Mitigasi Emisi Gas Rumah Kaca” dated 16 January 2012 to identify and mitigate greenhouse gas emission. The SOP # MAS-SOP/03.01/3.32.1 for Measurement of green house gas has established methodology for GHG emission inventory, mitigation measures, action plan for mitigation, periodical monitoring, substitute for fossil fuel, communication and person responsible of implementation. Plan to reduce GHG (Rencana Pengurangan Emisi Gas Rumah Kaca) under Environmental Management & Monitoring Plan 2016 which prepared by Assistant safety & Certification Mr. Hendrianto dated 16/01/2016 and acknowledged by Mr. Polmas, mill manager has identified following 4 mitigation measures:

To minimize usage of diesel usage To monitor efficient use of water To make lubricant replacement for HM machine on timely basis To monitor and ensure all mill effluent are channelled to effluent

pond.

Seen the evidence that, the sustainability team Mr. Henry Cai has submitted the GHG emission report to the RSPO Secretariat for review on 23/02/2016. In the mill, seen the management has all polluting assessments, identification of significant pollutants and GHG emissions which will be monitored monthly basis. Management plan to reduce the pollution and emission available includes development of biogas plant to reduce GHG emission.




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Principle 6: Responsible Consideration of Employees and of Individuals and Communities by Growers and Millers

Criterion by Audit

Summary

The mill and estate have conducted the social impact assessment. The relevant policies are in place and are fully implemented across the board. Communication and consultation as well complaints and grievances procedure are well communicated and adhered to. There are evidences of workers not been discriminated against in any way and all are being paid their fair wages.

MA 6.1 The company has SIA report by Aksenta dated December 2009. In conducting SIA, the company and Aksenta held public consultation in Ketapang Sub District Office in 24th March 2009. The SIA covers the main issues which are divided into Internal and External issues. Internal issues are workers’ health and safety; workers’ rights, etc. External issues are inconsistency land ownership, local workers, Dayak cultivation, and river as the main life support for local communities, local communities’ culture and values, CSR, company and local communities’ relationship, etc. The company creates social action plan annually and planning realization report afterwards. The planning covers the local community development, culture and lifestyle, public services, social relation, training, health and safety implementation, workers’ union, etc. Sighted management planning and social impact monitoring report January – December 2016. The company has most fully implemented the action plan 2015, it is showed in the impact assessment monitoring plan review 2015, dated 15th January 2016. The PIC for maintaining and implementing the social plan is Humas (Public Relation). The review of the action plan is done annually by “Humas” (Public Relation) Department. The review will be presented in front of various stakeholders of PT Maju Aneka Sawit. Sighted “Laporan Tinjauan Ulang Rencana Pengelolaan dan Pemantauan Dampak Sosial PT MAS’’ Periode 2015 dated 15th January 2016. Record of participant of the presentation that was done in 15th January 2016 available. Both Kas Desa (Tanah Putih and Penyang) was included in the public consultation both in SIA process and social impact assessment review. Seen PT. MAS has mutual agreement with the smallholders:

Kas Desa Tanah Putih no 001/SPK-KAS Desa/MAS-TP/IX/2010 dated 30th September 2010

Kas Desa Penyang no 001/SPK-KAS DESA/MAS-PG/II/2011 dated 24th February 2011.

MA 6.2 SOP ‘Stakeholder Consultation’ has been reviewed in 5 Mar 2015. For mill: MAS-SOP/03.01/3.26.1 & for Estate: MAS-SOP/01.01/8.8 dated 05.3.2015). Formal and informal consultation stated. List of stakeholders sighted incorporated for entire PT.MAS. Askep Humas (Mr. Ismail Hasibuan) reported the stakeholder consultation process. Record for formal stakeholder consultation 2015 is available. The public consultation covers SOP for land compensation, SOP for external complaint and grievance, SOP for community development, AMDAL, SIA, HCV, RSPO, and ISPO P&C. Regular stakeholder consultation with Desa Tanah Putih, Desa Sebabi, Desa Kenyala, Desa Hanjalipan, Desa Tangar, Desa Baampah dated 30th November 2015. The communication and consultation with stakeholders are maintained by “Humas” (public relation) Department.




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MA 6.3 The company has procedure for both internal and external complaint and grievance. SOP for internal complaint and grievance number MAS-SOP/01.01/6.1 dated 2nd May 2014 for Estate and SOP number 3.10.0 for Processing Department. SOP for external complaint & grievance no MAS-SOP/01.01. /5.1 dated 21st November 2015 (Estate) and number MAS-SOP/03.01/3.9.0 for Processing Department has been maintained. Sighted logbook for internal complaint and grievance (MAS-C&G/02.01/1.1) and external (MAS-C&G/02.01/1.2). However, there is no external and internal complaint until now. The company conduct the training and socialization related to complaint and grievance procedure and PKB (Perjanjian Kerja Bersama) – agreement between company and workers’ union annually. Latest training dated on 22nd February 2016 at Tanah Mas Estate.

MA 6.4 The company has land compensation procedure, SOP no MAS-SOP/01.01/1.0 dated 15th April 2014. The procedure covers the identification of local people claimed area. According to Mr. Jerry, GM of PT MAS, there is no customary rights or indigenous people inside PT MAS HGU. In Tanah Mas Estate, total areas which has been compensated in 2015 (PT MAS) are 139,64 ha. Sighted the agreement between Darma Umbak in Desa Tanah Putih and PT MAS number 002/MAS-TM/04/2015 dated 30th April 2015 - total compensation: Rp 265,000,000 and the agreement between Yenson in Desa Tanah Putih and PT MAS number 003/MAS-TM/05/2015 dated 12th May 2015 total compensation: Rp 204,150,000. Whereby in Alam Sahara Estate, total up to date area that had been compensated is 136.41 HA with total payment about Rp 1,022,030,001. Also sighted sample in 2015, the agreement between Abdiansyah in Desa Bagendang and PT GAP no 033/GAP-AS/11/2015 dated 30th November 2015. Total compensation paid is Rp 2,310,000.

MA 6.5 Company has been following updated The Provincial minimum wage for Central Kalimantan as per January 2016 – minimum wage (UMK) dated 2nd November 2015 for processing company is Rp 2,277,634. Furthermore, company has mutual agreement with the workers union (Perjanjian Kerja Bersama) which information are agreed in agreement such as:

Minimum age Minimum education Legal identity 3 months’ probation period Works’ location Promotion Demotion Mutation Working hours Overtime Minimum wage Day off Insurance Health and safety Etc.




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In MAS POM, verified minimum wages for workers name Sarifudin Baharsyah, work contract dated on 17th August 1992.Payment slip January 2016, Rp. 2,498,700. Also checked at estate, Contract of Saiun Mujib was born at 12th June 1991, contract dated 13th January 2015. Payments slip for January 2016, Rp 2,277,700. Housing included in agreement between management & union. Houses provided for married couple but if single, shared house. Sanitation & free water provided. Medical treatment also free at the estate clinic. Free electricity is provided for 24 hours. School & school transport provided. Children nursery provided.

MA 6.6 Policy for freedom of association is available. Policy no MAS-POD/01.01/1.3.3 dated 15th April 2008. In the policy, the company stated that company support and respect freedom of association based on national regulation ‘’UUD chapter 28 and UU Ketenagakerjaan no 13 of 2003’’. This policy also implemented and stated in PKB document. Policy publicly displayed in office that available in both English and Indonesia language. Sighted minutes of meeting for monthly meeting of Serikat Pekerja Maju Aneka Sawit dated 16th January 2016 discussion topic more on workers welfares.

MA 6.7 Child Employment Policy ref MAS-POD/01.01/1.2.7 dated 18.4.2012. Policy dated 18 April 2012 of below 18 years of age cannot be employed. Sampled employees list [Data Karyawan] –no workers sighted below 18 years. Also sighted in PKB, stated that the company and workers union had mutual agreement to not use any child labour and minimum age is 18 years old with minimum education is SLTP (junior high school). During field visit and interview, there is no child labour found in PT. MAS and PT. GAP.

MA 6.8 The company has policy for equal opportunities (MAS-POD/01.01/1.3.4 dated 15th April 2008. The company committed to give equal opportunities and has suitable payment and has chance to develop their career. Also sighted related SOP for New Employee Recruitment ref SOP # MAS-SOP/01.01/6.6 dated 20th July 2012 about confirmation, promotion and rotation. The company hired employees based on skills, capabilities and medical fitness for the necessary jobs. New recruitment announcement for process employee and maintenance employee dated 2nd January 2016, the new candidate must have legal identity (KTP), family register card (Kartu Keluarga), good behaviour statement (SKCK), Medical Check, and photos.

MA 6.9 The company has policy regarding sexual harassment and violence activity (MAS-POD/01.01/1.2.4). Company also committed against anything related to sexual and violence activity in the company with implementation of gender committee SOP # MAS-SOP/01.01/5.4 dated 4th March 2015. Sighted the organization structure of gender committee in PT MAS (2016-2017) head by Ibu Wina. Meeting held on quarterly basis, SOP states the flow of the mechanism. Sighted the meeting is held with all the agenda of harassment, violence and rights of women is discussed and analyzed, no issue raised. The company has policy related to protection of human reproduction (MAS-POD/01.01/1.3.5& GAP-POD/01.01/1.3.5) dated 13th March 2012. In the policy, company is committed to respect human rights and protect the reproduction rights of human. In PKB, the details related to women’s’ rights are explained clearly. The company has been socializing this policy to their workers, especially




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women’s workers, it was confirmed by interview that female workers understand on the reproductive rights.

MA 6.10 The price of FFB is determined on monthly basis by local government agencies, ‘’Tim Penetapan Pembelian TBS Kelapa Sawit Produksi Pekebun’’ for Central Kalimantan Province, sighted latest price dated on 12th January 2016. The daily FFB prices well communicated to both Kas Desa in the mill announcement board as well verbal communication with head of Kas Desa. Sighted MoU between PT MAS and Desa Penyang no 001/SPK-KAS DESA/MAS-PG/II/2011 dated 24th February 2011 and between PT MAS and Desa Tanah Putih no 001/SPK-KAS DESA/MAS-TP/IX/2010 dated 30th September 2010. The payment for Kas Desa is done once a month; the payment will be transferred to the villages account. All record related to the crops and their deductions are clear and well documented by the company.

MA 6.11 The company has SOP for ‘’Community Development and CSR program’’ (MAS-SOP/01.01/8.1.1) dated 2nd January 2008. CSR plan were programmed annually to villages around PT. GAP & PT. MAS. CSR programs based on the stakeholder recommendation and proposals. See sample of CSR proposal from SDN 1 Penyang dated 20th June 2015 for school floor construction support and CSR proposal from Dusun Runting Tada, Desa Tanah Putih dated 28th August 2015 for festival supports. No smallholders scheme. However, under the management of PT MAS, it has developed a scheme called KAS DESA. This project is part of CSR for the company as it is in response to an application forwarded by the head of Village focused to improve the financial, social and the independency of the surrounding nearest village. Sighted that the project has taken place where the management take charge of 10 ha of the village land, develop it and the return is given back to the community of KAS DESA Tanah Putih via their Head of Village. Further, company has the effort to improve the local community by providing opportunity to join intership program in PT.MAS & PT. GAP to have exposure related to oil palm in administration, plantation and etc.

MA 6.12 The company has human rights policy no MAS-POD/01.01.1.2.10 dated 2nd May 2014. The policy includes:

The company committed to provide workplace which won’t be use any form of forced or trafficked labour.

The company committed to provide a workplace which is clean from “Pelanggaran hukum”

The company will give wage based on minimum wage that is determined by regional government.

The company committed to respect cultural values of local communities.

No contract substitution has occurred. Migrated employee exists in this organization, usually from Jawa [internal migration] sighted employed. No temporary employees employed.

MA 6.13 Human Rights Policy dated 2.5.2014 Sighted in estate: MAS-POD/01.01/1.2.10 and in mill: MM-POD/01.01/1.2.21 approved by Lim Teong Kwee as Director of Strategy & Planning.




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Principle 7: Responsible Development of New Plantings

Criterion by Audit

Summary

The company has followed all NPP procedure and is in full compliance to Principal 7 for this complex

MA 7.1 Sighted the evidence of “RSPO Notification of Proposed New Planting” for on-going development within the PT. MAS and PT GAP concession. Social Impact assessment (SIA) was carried out by AKSENTA. SIA management plans for PT MAS and PT GAP (Rencana Pengelolaan Lingkungan / Rencana Pemantauan Lingkungan) are sighted. Seen the satellite image and a comprehensive assessment report dated in 2012 “Laporan Analisa Penggunaan Lahan (Land Use] Sebelum dan Sesudah Pembangunan Perkebunan Kelapa Sawit PT. Maju Aneka Sawit Kabupaten Kotawaringin Timur”. Sighted the ANDAL – MAS-AMD/02.01/1.3 dated on 12/02/2009, page III-2, clause 3.1.3 “Status dan Penggunaan Lahan” clearly stated the land was with secondary forest and bushes.

MA 7.2 Sighted soil maps are available in all estates as per requirement by their policy MAS-OPI/02.01. /1.1 ‘’Land Code’ There are sufficient SOPs available for the soil and land type that being implemented at all operating units.

MA 7.3 Based on HCV and land cover assessment and land use change analysis there was no primary forest and peat swamp forest in the HGU of PT MAS. Almost the entire land consisted of previously cultivated land, shrub land and open land area. The summary of the result from HCV assessments within the PT MAS concession showed that four out of six high conservation value (or HCV) areas, namely HCV 1, HCV 3, HCV 4, HCV 6 are present in PT MAS concession. In PT GAP Alam Sahara, based on HCV and land cover assessment and land use change analysis there was no primary forest and the land cover is generally made up of shrub land. The summary result from HCV assessments within the PT GAP Alam Sahara Estate concession showed HCV Management Area (HCVMA) has been implemented. Based on both assessment showed that there was no forest areas converted since November 2005.

MA 7.4 SOPs are in place to manage existing peat land in PT MAS and PT GAP. Field inspection confirmed on the implementations. After 2007 there was no planting done in peat land.

MA 7.5 AMDAL report is available, where positive impacts will be promoted and negative impact will be taken action. The compensation policy and procedures based on FPIC will be enforced. Procedure of negotiating includes land valuation, company set values, and negotiation protocol between two parties will be manage by the Humas (Industrial Relation) Dept.

MA 7.6 No Customary and legal rights identified. The company has a procedure to identify the people who may be entitled to receive compensation and also maintains records and details of any negotiations with details of any compensation or settlements made.

MA 7.7 The company has a zero burning policy for preparing land for planting and has a procedure in place to respond to land burning on neighboring properties.

MA 7.8 The land use change and Greenhouse Gas Emission (GHG) analysis PT MAS




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and PT GAP have been updated using RSPO Carbon Assessment Tool for New Oil Palm Planting dated December 2014. The results of major potential sources of emissions that may result directly from the development will be used plan to minimize net GHG emissions which takes into account establishment in low carbon stock areas. Sighted email correspondence on submission of land use plan based on LUC and GHG emissions in compliance with the RSPO P&C 2013 Criterion 7.8. This report is also in place and sighted.

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

Criterion by Audit Summary

There are many improvement programs as mentioned in respective principles published in their annual company presentation. Both mill and estates has sufficient records and documents to justify the achievements.

MA 8.1 PT MAS has action plan for continuous improvement so called “ Project of continuous Improvement Plan 2016” that consist of several elements such identification, objective, target, action plan to achieve, time frame and who is person responsible. Document was last updated in 22/01/2016 by Mr. Hendrianto. The main component of the CIP is from social aspect, OSHA, economic and environment. To verify, last year (2015) CIP action plan has been checked. All targets were successfully achieved according to time frame given as:

Economic – To provide server space in Mill office – Completed in July 2015.

Social – Re-paint and renovation of all staff and workers housing – Completed in Aug 2015.

Safety – Standardised all eye wash facilities in mill area – completed in April 2015

For 2016, sample of CIP implementation: Economic Aspects

Construction of “Fibre Dryer System” in mill’s EFB press station. Objective is to ensure efficiency of fibre burning at boiler. Estimated to be accomplished in September 2016.

In estates, sighted plan to reduce pesticide usage by census barn owl and census leaf eating, improving the beneficial plant area and keep maintained barn owl population in estate. Record of Tunera and Cassia plant well recorded and monitored. Monitoring of barn owl number in Tanah Mas Estate (251 units with 9.16% occupied) & Alam Sahara Estate (110 units with 3.64% occupied).

Additional 3 units in Alam Sahara Estate & Tanah Mas – 1 unit “Fire Monitoring Tower” in field to improve fire control.

In peat area, estate just implemented “Piezometer” to monitor water level in middle of plantation block. Tanah Mas Estate – 52 & Alam Sahara – 28.

Social Aspects

Construction of 8 additional worker housings to be completed in July 2016.

Environment Aspects

Upgraded road in front of mill to probase (permanent) due to dust problem for environment and health.

Build a store to place inorganic waste at workers housing area. Maintain the BOD for final discharge below 100ppm, compared to




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legal requirement is 5,000ppm. Dry solid produced from mill to be applied in field to reduce the

waste. GHG emission reduction - Minimise the usage of diesel in mill

operation by using substitute as PME, fully using biogas plant to generate electricity instead of genset and usage of mill processing by products such as fibre and shell in boiler to generate electricity for processing.

Safety & Health Aspects

Replacing electric wiring at water pumps house and workers housing area due to poor condition and may cause accident.

Replacing mill fence to avoid any encroachment from outsider.

4.3 Non-conformity Raised During this Audit and Any from the Previous Year, if applicable

This section gives an over view of new or revised non-conformities raised during this audit and of action taken to close out non-conformities raised during the previous audits, if applicable

If a minor-non-conformity raised at the last audit, is not closed out, then this will be raised to Major status and the company given 60 days to close this out.

The NC number is comprised of 2 parts to include the year in which the NC was raised as well as a sequential number.

4.3.1 Non-Conformities Identified during this Audit

Non-were raised during this audit.

4.3.2 Non-Conformity Identified during the last ASA, not applicable for MA

Non-were raised during the last audit.

4.3.3 Observations Raised During this Audit

Non-were raised during the last audit.

4.4 Issues that were raised during the Stakeholder Consultation, if any

Stakeholders were either informed by the client or by Control Union via the RSPO website.

For Main Assessments, a 30 day Stakeholder consultation announcement is published on the RSPO website

prior to the audit. The same announcement is circulated by the client prior to the audit

For subsequent Annual Assessments, it is based on stakeholders reading the approved public summary

reports available on the RSPO website, the client’s procedures in receiving on-going feedback or if feedback

was sent directly to Control Union prior to an audit or thorough RSPO complaints procedures.

During each assessment, the audit team will review the company’s implemented procedures in receiving

feedback and will execute field visits and interviews. Not limited to the following questions, any feedback

received is reviewed and summarized in this summary report for either Part 2 – Partial Certification or Part 4 –

Assessment Findings above or noted below, if applicable:

1. Do you have any remarks on the RSPO standard?

2. What is your relation with the applicant?

3. Are there any plantation or mill management practices that affect you?

4. Do you consider any management is in conflict with the RSPO principles and criteria?

5. Do you have any suggestions for management?

6. Are you aware of any HCV in the plantations or in adjacent land?




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7. Are you aware of any endangered or rare species?

8. Are there any adverse (or positive) effects on local communities?

9. Additional comments?

11. Do you have any comments about the assessment team and would you like to meet with them?

12. Do you have any comments for the client’s management of any other plantations?

Subject raised Company response and proposed action to be taken

Audit team findings

Labour Department of Kabupaten Kotawaringin Timur

Good legal compliance related to workers

All problems with workers or employees can be solved with Bipartit and Tripartit meeting

Good commitment in implementing health and safety

Company get zero accidents achievement from Kabupaten Kotawaringin Timur and Central Kalimantan Province

There is no child labour Recommendations:

The company must control their outsourcing workers or contractors to follow their policies and procedures.

Coordination with local communities for land fire mitigation.

The company has been coordinating with several villages to mitigate land fire, furthermore the company provide them tools to help them extinguishing the fire.

The company has been giving induction training and briefing to the outsourcing workers and contractor before they start working,

Positive comments

Head of Sebabi Village

The information of the recruitment always informs to the village Head and “tokoh masyarakat”

The company always share the recruitment to the villages and Sub-District and always communicate with the key persons of the villages.

Positive comments




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LSM Duta (NGO)

There is no river pollution

Negative comments:

The local communities not getting enough support to extinguish the land fire.

The company just added some new fire trucks to mitigate and extinguish the fire more effectively.

The company has been coordinating with several villages to mitigate land fire, furthermore the company provide them tools to help them extinguishing the fire.

Company has agreed to collaborate with local communities if any case land fire in future.

Sub-District Telawang

The company always inform the recruitment announcement in Sub-District Telawang

The company also held the socialization regarding natural disaster with various stakeholders

Recommendation:

Create collaboration with local communities to mitigate the land fire

The company has been coordinating with several villages to mitigate land fire, furthermore the company provide them tools to help them extinguishing the fire

Positive comment

Tanah Putih Village

Kas Desa Program is very helpful in developing his village.

The payment of Kas Desa is very transparent

The company always contact him via phone if there is any recruitment in PT MAS

There are many of his people who are working in PT MAS Recommendations:

Involving local communities to mitigate the land fire.

Maintain the village road construction together since he received many complaints from

The company has a program to give opportunity for high school students which are located around the company to apply an internship in PT MAS and PT GAP for 3 months. In this internship, they can learn and have an understanding how’s the palm oil industry works.

Road maintenance is part of company’s CSR program, the company will do maintenance regularly.

The company has been coordinating with several villages to mitigate land fire,

Positive comments




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his people.

Training the local people to improve their capability to get higher position in their workplace

furthermore the company provide them tools to help them extinguishing the fire.

Workers’ Union

The company has good relationship with workers union.

Bipartit meeting is held every month

- Positive comments

BPN (Badan Pertanahan Nasional)

All legal compliance related to land permit are complete.

- Positive comments

PART 5: RSPO SUPPLY CHAIN CERTIFICATION

The palm mill mentioned in the scope of the audit was audited against the requirements of the following: RSPO Supply Chain Certification Systems. November 2014 RSPO Supply Chain Certification Standard. November 2014

5.1 POM Included In The Scope Of The Audit

Name Palm Oil Mill

Mill Capacity

Location Supply Chain Model

(POM) MT/Hour Address (IP or SG or MB)

Maju Aneka Sawit 45 Desa Tanah Putih, Kecamatan Telawang, Kabupaten Kotawaringin Timur, Propinsi Kalimantan Tengah, Indonesia.

IP

5.2 Confirmation Of The Company’s Summary Of Annual Certified Volume Of RSPO Certified Palm Oil And Palm Kernel Over A Specified Period

Product CPO (MT) PK (MT) Specified 12 month period

CU Code

POM 1 60,384 15,096 Actual volumes between 01/05/2015 to 30/04/2016. See also 1.6 above.




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5.3 Summary Report Including A Brief Description Of The Scope Of Certification

The palm oil mill sources FFB [all certified] being processes to produce RSPO CPO and RSPO PK through IP, SG, MB module. Actual quantities of FFB delivered to the mill are entered into a central computer system and the actual quantities of CPO and PK produced are also entered and the OER is known. The quantities of certified CPO and PK are shown in real time and summarized each day on a spreadsheet. A full RSPO SCCS certification audit was used during this annual assessment and the findings support the certification based on supply chain model listed above.

5.4 Monthly Records of Certified and Uncertified FFB Received Since the Last Audit

No MONTH-YEAR Certified Supply Bases (MT) Uncertified Supply Bases (MT), if any

Total (MT)

1 May 2015 17,373.22 N/A 17,373.22

2 June 2015 15,359.46 15,359.46

3 July 2015 14,316.27 14,316.27

4 August 2015 12,422.46 12,422.46

5 September 2015 14,979.5 14,979.5

6 October 2015 19,386.92 19,386.92

7 November 2015 17,487.61 17,487.61

8 December 2015 19,175.84 19,175.84

9 January 2016 15,098.05 15,098.05

10 February 2016* 16,269.96 16,269.96

11 March 2016* 16,269.96 16,269.96

12 April 2016* 14,236.22 14,236.22

TOTAL 192,375.47 192,375.47

* Actual certified production from May 2015 to Jan 2016, estimated certified production from February 2016 to April 2016

5.5 Monthly Records of Certified FFB, CPO and PK Since the Last Audit

No MONTH-YEAR Certified CPO (MT) Certified PK (MT)

1 May 2015 4,433.623 897.620

2 June 2015 3,942.096 747.389

3 July 2015 3,783.875 765.944

4 August 2015 3,200.038 661.798

5 September 2015 3,675.835 823.488

6 October 2015 4,446.052 1,176.935

7 November 2015 3,981.357 1,015.965

8 December 2015 4,850.885 1,073.202

9 January 2016 3,805.186 793.790

10 February 2016* 4,392.889 1,098.222

11 March 2016* 4,392.889 1,098.222

12 April 2016* 3,843.779 960.945

TOTAL 48,748.505 11,113.52

* Actual certified production from May 2015 to Jan 2016, estimated certified production from February 2016 to April 2016




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5.6 Records of Certified CPO & PK Sold under GreenPlam to Buyers since the Last Audit, if Any

No Buyers Name GreenPalm Trading No Certified CPO

(MT) Sold Certified PK (MT) Sold

1 Nil

5.7 Records of Certified CPO & PK Sold under UTZ eTrace to Buyers since the Last Audit, if Any

No Buyers Name UTZ eTrace Trading No Certified CPO

(MT) Sold Certified PK (MT) Sold

1 PT. MM – Batam TR-cd20e153-7102 1,000 -

2 PT. MM – Batam TR-ab8f902c-d64f 1,000 -

3 PT. MM – Batam TR-28ad5a0a-b21a 999.632 -

4 PT. MM – Belawan TR-2aeff15d-9e17 700 -

5 PT. SSM – Bagendang TR-97e28252-5561 423.04 -

6 PT. SSM – SSM1 POM TR-ece4d956-504a - 3.354

7 PT. SSM – SSM1 POM TR-ed3acf73-7155 - 98.803

8 PT. SSM – SSM1 POM TR-4728ffe4-9623 - 103.401

9 PT. SSM – SSM1 POM TR-988fe870-5070 - 485.210

10 PT. SSM – SSM1 POM TR-a629f331-e97e - 85.824

11 PT. SSM – SSM1 POM TR-cc08f664-e0c1 - 83.866

12 PT. SSM – SSM1 POM TR-b15e2ea3-df11 - 500

13 PT. SSM – SSM1 POM TR-4686a969-a76e - 83.733

14 PT. SSM – SSM1 POM TR-532ba521-d9dd - 500

15 PT. SSM – SSM1 POM TR-e4f745df-b014 - 88.726

16 PT. SSM – SSM1 POM TR-eca9c006-fcd9 - 500

17 PT. SSM – SSM1 POM TR-c7107225-bc60 - 96.911

18 PT. SSM – SSM1 POM TR-5da8669b-39e7 - 500

19 PT. SSM – SSM1 POM TR-9eb80340-9611 - 99.152

20 PT. SSM – SSM1 POM TR-84ef8219-0994 - 128.021

21 PT. SSM – SSM1 POM TR-32d260bb-ae24 - 500

22 PT. SSM – SSM1 POM TR-cba8dd0f-9cf3 - 91.209

23 PT. SSM – SSM1 POM TR-ca8ce3c6-4b12 - 500

24 PT. SSM – SSM1 POM TR-67855344-e4b4 - 106.018

25 PT. SSM – SSM1 POM TR-f5235e05-e898 - 300

26 PT. SSM – SSM1 POM TR-c60e9bda-5832 - 302.490

27 PT. SSM – SSM1 POM TR-583e0e0f-a711 - 118.256

28 PT. SSM – SSM1 POM TR-3973db0f-cae3 - 500

Total 4,122.672 5,774.974




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5.8 Non-Conformities Identified during this Audit

Timeline for compliance: 1. All non-conformances observed during an audit shall be classified as ‘major’ since all requirements for

Supply Chain certification have to be met before granting certification. 2. For Main Assessments, all non-conformances shall be addressed satisfactorily by the operation before

certification may be granted by the certification body. If non-conformances are not addressed within three (3) months of the audit, a full re-audit shall be required. The certification body shall assess the effectiveness of the corrective and/or preventive actions taken before closing out the non-conformances.

3. For Annual Surveillance Assessments, non-conformances raised after the certification are serious (i.e. must be considered as a major) and the integrity of the RSPO Supply Chain Certification is at risk. A maximum of one month is to be given to the certified client to satisfactorily address the non-conformance. The certification body shall assess the effectiveness of the corrective and/or or preventive actions taken. Should the nonconformance not be addressed within the one-month maximum timeframe, a suspension or withdrawal of the certificate and a full re-audit may be necessary.

4. If no non-conformances are observed at an audit or when the corrective action plan has satisfactorily addressed raised non-conformance(s), the client shall be recommended for (re-) certification.

Non-were raised during this audit.

5.9 Description of the Organizational Management Systems

Including organizations, management and operational systems to ensure compliance with the RSPO Supply Chain Certification Systems and Standards as detailed above

The management continually improving the established RSPO Supply Chain standards since the main assessment. As part of continuous improvement, many trainings being planned in the mill. E Trace data management is managed by HQ [Medan]. Organizational structure of the sustainability management system has been established. The mill manager who acts in the capacity of top management in the sustainability management system, is responsible for decision making in the management system implementation and shall commit towards the development, improvement and implementation of the management system.

5.10 Final Certification decision by Control Union for the RSPO SCCS Audit of the POM

Recommendations made: Yes

Summary of non-compliances:

Nil

Certification status of client: The POM included in the scope of this audit demonstrated full compliance with the RSPO SCCS. With effect from the certification date given in the RSPOPC certificate, this POM mentioned in the scope of this report is considered to be certified in accordance with the RSPO SCCS.




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PART 6: CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

6.1 Date of next ASA

The provisional date for the next ASA is: April 2017

6.2 Date for Closure of Non-Conformities

All major NCs to be closed by: N/A

All minor NCs to be closed by: N/A

6.3 Signing by the Client

I the undersigned, being the most senior relevant management representative of the operation seeking or holding certification, agree with the contents and audit findings as presented in this document . I also confirm:

Acceptance of liability in execution of the instructions given.

That this company was made aware that the findings of the audit team are tentative; pending review and decision making by the duly designated representatives of Control Union Certifications.

That during the closing meeting all agenda items was covered by the Lead Auditor.

Acknowledged by:

Name: Dr. Gan Lian Tiong

Position: Director of Sustainability

Date: 23/05/2016 Signature

6.4 Signing by the Lead Auditor

I the undersigned, being the Lead Auditor, confirm that this report is an accurate record of the findings and of the closing meeting. I further confirm that the summary of the findings as presented in this report are a true representation of the actual findings of the audit team.

Acknowledged by:

Name: Muhd Jamalul Arif

Position: Lead Auditor


6.5 Signing by the Certifier

I the undersigned, being the Certifier, confirm that the information and conclusions included in this report have been prepared in good faith and that the certification decision has been based upon this information.

Acknowledged by:

Name: Terence Ang

Position: Certifier





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PART 7: APPENDICIES

Appendix 1: Location Map for this Certification Unit

From 1.9, the location map(s)

1). Location of PT. MAS & PT GAP in Indonesia




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2). Location of PT MAS & PT GAP

3). Location of mill and supply bases




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Appendix 2: List of Abbreviations

AMDAL Analisis Mengenai Dampak Lingkungan

BOD Biological Oxygen Demand

BRC British Retail Consortium

CHRA Chemical Health Risk Assessment

CoC Chain of Custody

COD Chemical Oxygen Demand

CPO Crude Palm Oil

CSR Corporate Social Responsibility

CU Control Union

CUC Control Union Certifications

DOE Department of Environment

EFB Empty Fruit Bunch

EIA Environment Impact Assessment

ERT Endangered Rare or Threatened species

EU European Union

FFB Fresh Fruit Bunch

FSC Forest Stewardship Council

FSC COC Forest Stewardship Council Chain of Custody

FSC FM Forest Stewardship Council Forest Management

GGL Green Gold Label

GMP Good Manufacturing Practice

GOTS Global Organic Textile Standard

GTP Good Trading Practice

GPS Global Positioning System

HACCP Hazard Analysis and Critical Control Point

HCV High Conservation Value

HCVF High Conservation Value Forest

HGU Hak Guna Usaha

IPM Integrated Pest Management

JAS Japanese Agricultural Standard

MSDS Material Safety Data Sheet

NC Non Conformity

OE Organic Exchange

OER Oil Extraction Rate. (CPO as a % of the mass of FFB).

OSH Occupational Safety and Health

OSHAS Occupational Safety and Health Assessment Scheme

P&C Principle and Criteria

PEFC Programme for the Endorsement of Forest Certification

PET Polyethylene Terephthalate

PK Palm Kernel

POM Palm Oil Mill

POME Palm Oil Mill Effluent

PPE Personal Protective Equipment

RKL Rencana Pengelolaan Lingkungan Hidup

RPL Rencana Pemantauan Lingkungan Hidup

RSPO Roundtable on Sustainable Palm Oil

RSPO NI Roundtable on Sustainable Palm Oil National Interpretation

RTE Rare, Threatened, and Endangered

SA8000 Social Accountability 8000




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SEIA Social Environmental Impact Assessment.

SIA Social Impact Assessment

SOCSO Social Security Organisation

SOP Standard Operating Procedure

UKL/UPL Upaya Pengelolaan lingkungan (UKL) / Upaya Pemantauan Lingkungan (UPL)

USDA/NOP United States Department of Agriculture – National Organic Program

MT Metric Tonnes

WHO World Health Organization

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