PT. MUTUAGUNG LESTARI ASSESSMENT REPORT
Roundtable on Sustainable Palm Oil Certification R S P O
[]Stage-1 [ ] Stage-2 [√] Surveillance [ ] Re-Assessment
Pengelola/Pemilik : PT MEGANUSA INTISAWIT subsididary of PT IVO MAS TUNGGAL Nama Perkebunan : Indrasakti Mill, Indrasakti Estate, Indrasakti Plasma, Indragiri Plasma dan Indralestari Plasma Lokasi : Talang Sukamaju Village, Rakit Kulim Sub District, Indragiri Hulu District, Riau Province, Indonesia.
Kode Sertifikat : MUTU-RSPO/033 Tanggal Terbit Sertifikat : 04 December 2013 Masa Berlaku Sertifikat : 03 December 2018
Assessment PT. Mutuagung Lestari Reviewed Approved Assessment Date Auditor by by Ardiansyah (Lead Auditor witnesser), Oktovianus Rusmin Tony ASA-1 20-23 October 2014 Taufik Margani (Lead Auditor witnessed), Moh. Arif Arifiarachman Yusni, Andi Pratama, Brigitta Prita
Approved Assessment by MUTUAGUNG LESTARI on: ASA-1 17 November 2014
Mutuagung Lestari • Raya Bogor Km 33,5 Number 19 • Cimanggis • Depok 16953• Indonesia Telephone (+62) (21) 8740202 • Fax (+62) (21) 87740745/6 Email : [email protected] ● www.mutucertification.com MUTU Certification • Accredited by Accreditation Services International on March 12th, 2014
PT. MUTUAGUNG LESTARI ASSESSMENT REPORT
TABLE OF CONTENT FIGURE Figure 1. Location Map of PT Meganusa Intisawit 1 Figure 2. Operational Map of PT Meganusa Intisawit 2 Figure 3. Operational Map of Indrasakti Estate 3 Figure 4. Operational Map of Indragiri Plasma 4 Figure 5. Operational Map of Indralestari Plasma 5 Figure 6. Operational Map of Indrasakti Plasma 6
1.0 SCOPE of theSURVEILLANCE ASSESSMENT 1.1 National Interpretation Used 7 1.2 Organization Information 7 1.3 Type of Assessment 7 1.4 Location of Plantations, Mill and Area Statement 7 1.5 Description of Supply Base 8 1.6 Dates of Plantings and Cycles 9 1.7 Approximate Tonnage Certified 9 1.8 Other Certifications 10 1.9 Time-Bound Plan for Other Management Units 10
2.0 ASSESSMENT PROCESS 2.1 Certification Body 12 2.2 Assessment Team 12 2.3 Assessment Methodology, Assessment Process and Locations of Assessment 12 2.4 Stakeholder Consultation and List of Stakeholders Contacted 16 2.5 Determining Next Visiting 16
3.0 ASSESSMENT FINDINGS 3.1 Summary of Assessment Report of the RSPO Certification 17 3.2 Summary of Assessment Report of Supply Chain Requirement 61 3.3 ConformityChecklist of Certificate and Logo Use 69 3.4 Summary of RSPO Partial Certification 70 3.5 Identification of Findings, Corrective Actions, Observations, Opportunity for Improvement and 71 Noteworthy Positive Components 3.6 Summary of Arising Issues from Public, Management and Auditor Responses 73
4.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY 4.1 Formal Signing of Assessment Findings 78
APPENDICES 1. List of Stakeholders Contacted in the RSPO Certification Process 79 2. Assessment Program 80 3. Glossary 81
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Figure 1. Location Map of PT Meganusa Intisawit
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Figure 2. Operational Map of PT Meganusa Intisawit
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Figure 3. Operational Map of Indrasakti Estate
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Figure 4. Operational Map of Indragiri Plasma
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Figure 5. Operational Map of Indralestari Plasma
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Figure 6. Operational Map of Indrasakti Plasma
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1.0 SCOPE OF THE CERTIFICATION ASSESSMENT
1.1 National Interpretation Used - National Interpretation, RSPO Principles and Criteria (P&C) for Sustainable Palm Oil Production, Republic of Indonesia - RSPO INA- NIWG, May 2008 - National Interpretation, RSPO Principles and Criteria (P&C) for Sustainable Palm Oil Production, Republic of Indonesia Scheme Smallholders Octobers 2009 - RSPO Supply Chain Certification Standard November 2011 for CPO Mill.
1.2 Organization Information 1.2.1 Company name PT Meganusa Intisawit – Ivo Mas Tunggal 1.2.2 Contact person Ismu Zulfikar 1.2.3 Company address and site address Head Office : Sinar Mas Land Plaza, Tower II, 30th Floor Jl. MH Thamrin No. 51, Jakarta 10350, Indonesia Phone: +62-21-5033 8899. Fax: +62-21-5038 9999.
Site : Village Of Talang Sukamaju, Sub District Of Rakit Kulim, District Indragiri Hulu, Province Riau. 1.2.4 Telephone (+62-21) 318 1388 1.2.5 Fax (+62-21) 318 1389
1.2.6 E-mail [email protected]
1.2.7 Web page address www.smart-tbk.com 1.2.8 Company status Private 1.2.9 Management Representative who completed the application for Ismu Zulfikar certification (Head of Environmental Health & Safety Departement) Registered as RSPO member Number of registration 1-0056-08-000-00, 17 Juni 1.2.10 2008.
1.3 Type of Assessment 1.3.1 Scope of Assessment Palm Oil Mill and supply base : Indrasakti Mill, Indrasakti Estate, Indrasakti Plasma, Indragiri Plasma and Indralestari Plasma. 1.3.2 Type of certificate Single 1.3.3 Company names listed in the certificate PT Meganusa Intisawit – Ivo Mas Tunggal
1.4 Locations of Mill, Plantations and Area Statement 1.4.1 Location of Mill Coordinate Name of Mill Location Latitude Longitude Indrasakti Mill Village Of Sungai Limau Sub District Of Rakit Kulim District Of Indragiri 0˚ 34΄ 15˝ N 102˚ 18΄ 18˝ E Hulu
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1.4.2 Location of Supply Base Koordinat Name of Supply Base Location Latitude Longitude Indrasakti Estate Viilage Of Sungai Limau Sub District 0˚ 32’ 52”-0˚ 34’ 3” 102˚ 18’ 59”– 102˚ 20’ 34” Of Rakit Kulim District Of Indragiri N E Hulu Indrasakti Plasma Viilage Of. Sungai Limau, Sub District 0˚ 29’31” – 0˚ 35’ 11” 102˚ 22’ 42’ – 102˚ 22” 42” Of Rakit Kulim, District Of Indragiri N E Hulu Indragiri Plasma Viilage Of Kuala Gading, Sub District 0˚ 35’58”- 0˚ 44’ 51” 102˚ 12’ 54” – 102˚ 11’ 49” Of Batang Cenaku, District Of N E Indragiri Hulu Indralestari Plasma Viilage Of Talang Bersemi, Sub 0˚ 42’8” – 0˚ 46’ 56” 102˚ 07’ 29” –102˚ 07’ 41” District Of Batang Cenaku, District Of N E Indragiri Hulu
1.4.3 Tenure State 867.73 Ha Community 14,304.5 Ha
1.4.4 Area Statement Hectarge Indrasakti Indrasakti Indragiri Indralestari Total Estate Plasma Plasma Plasma Total area 867.73 4,764 7,170 2,370.5 15,172.23 Mature area 778.15 4,592 6,975 2,210.5 14,555.65 Immature area - - - - - Mill and Emplashment 50.96 - - - 50.96 Infrastructure 32.45 - - - 32.45 Emplashment - 147 195 160 502 Nursery - - - - - HCV 6.17 - - - 6.17 Others area - 25 - - 25
1.5 Description of Supply Base 1.5.1 Description of Mill
FFB CPO Palm Kernel Capacity Processed Name of Mill (tonnes/ (tonnes/ Out put Extraction Out put Extraction hour) year) (tonnes) (%) (tonnes) (%) Indrasakti Mill 60 411,294.10 86,326.50 21 21,935.71 5.33 *Source: Production Data of mill period October 2013 – September 2014.
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1.5.2 Description of Certified Estate
Planted Yield Supplied to Mill Total Area FFB Name of Estate(s) Area (tonnes/ha/ (Ha) (tonnes/year) FFB % (Ha) year) (tonnes/year) Indrasakti Estate 867.73 778.15 21,756.38 27.96 21.756,38 100 Indrasakti Plasma (7 cooperatives and 2,329 4,764 4,592 114,799.37 24.99 114,799.37 100 smallholders) Indragiri Plasma (7 cooperatives and 3,546 7,170 6,975 208,366.25 29.87 208,366.25 100 smallholders) Indralestari Plasma (2 cooperatives and 1,114 2,370.5 2,210.5 63,453.75 28.71 63,453.75 100 smallholders) TOTAL 15,172.23 14,555.65 408,375.75 28.06 408,375.75 100 * Source: Production Data of estate bulan October 2013 – September 2014.
1.5.3 Smallholders and other source Supplied to Mill Name of sources Members Location FFB (tonnes/year) Belilas Mandiri (Independent Viilage Of Pangkalan kasih Sub - 2,827.93 Smallholder) District Of Seberida . Sub District Of Seberida,District Other (TYAX) - 90.42 OfIndragiri Hulu. TOTAL 2,918.35 * Source: Production Data of mill period October 2013 – September 2014 FFB recieve from other suppier conducted on October 2013 – March 2014
1.5.4 Product categories FFB / CPO / PK
1.6 Dates of Plantings and Cycles 1.6.1 Age profile of planted palms* Hectarage Planting Year Indrasakti Indrasakti Indralestari Indragiri Plasma Total Estate Plasma Plasma 1996 - - 400 - 400 1997 - 550 2,825 - 3,375 1998 - 929 2,519 56.5 3,504.50 1999 - 550 141 115 806 2000 223.16 1,799 370.1 508 2,900.26 2001 470.48 513 719.9 1531 3,234.38 2002 57.23 - - - 57.23 2003 10.99 - - - 10.99 2004 13.32 - - - 13.32 2005 2.97 251 - - 253.97 TOTAL 778.15 4,592 6,975 2,210.5 14,555.65 1.6.2 New Planting area after November 2007 Ha
1.6.3 Planting Cycle 1st Circle (25 Years)
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1.7 Approximate Tonnage Certified 1.7.1 Past Annual Claim Certified Product Certificate Claim* Actual certified product ** (tonnes/year) (tonnes/year) FFB Production 344,286.65 202,815.63 CPO Production 75,743 42,571 Palm Kernel (PK) Production 18,936 10,936 *Certificate Claim period 30 April 2014 – 3 December 2014 ** Actual klaim SG periode 30 April 2014 –19 October 2014 1.7.2 Claim Certified Tonnage of FFB
Total Area Planted Area FFB Yield Name of Estate(s) (Ha) (Ha) (tonnes/year) (tonnes/ha/year)
Indrasakti Estate 867.73 778.15 22,192.48 28.52 Indrasakti Plasma 4,764 4,592 120,540.00 26.25 (7 cooperatives and 2,329 smallholders) Indragiri Plasma 7,170 6,975 212,528.25 30.47 (7 cooperatives and 3,546 smallholders) Indralestari Plasma 2,370.5 2.210.5 66,646.58 30.15 (2 cooperatives and 1,114 smallholders) TOTAL 15,172.23 14,555.65 421,907.31 28.85 *Source:Projection data of estate Ok Claim Certified Tonnage of Palm Product FFB Capacity CPO Palm Kernel Name of Mill Processed (tonnes/ hour) Out put Extraction Out put Extraction (tonnes/year) (tonnes) (%) (tonnes) (%) Indrasakti Mill 60 421,907.31 90,710 21.5 22,783 5.4 * Source: Projection data of mill
1.8 Other Certifications 1.8.1 ISO 9001:2008/ISO 14001: 2004 - 1.8.2 OHSAS 18001:2007 - 1.8.3 HACCP - 1.8.4 Others ISCC (2013 Year)
1.9 Time Bound Plan 1.9.1 Time Bound Plan for Other Management Units Management Unit Time Bound Time Estate (Supply Base) Location Status MILL Bound Plan Plan 2009 Samsam Estate 2009 Certified Samsam Mill 2009 Kandista Estate 2009 Siak-Riau Certified 2009 Palapa Estate 2009 Certified 2009 Libo Estate 2009 Certified Libo Mill 2009 Nenggala Estate 2009 Siak-Riau Certified 2009 Sungai Rokan Estate 2009 Certified SPO – 4006a.6 Halaman 10 Prepared Mutuagung Lestari for Indrasakti Mill – PT Meganusa Intisawit,Ivo Mas Tunggal
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Ujung 2009 Ujung Tanjung Estate 2009 Certified Siak-Riau Tanjung Mill 2011 Sungai Tapung Setate 2011 Certified 2010 Naga Mas Estate 2010 Certified Naga Sakti Kampar- 2010 Naga Sakti Estate 2010 Certified Mill Riau 2010 Rama Bakti 2010 Certified 2010 Kijang Mas Inti Estate 2010 Kampar- Certified Kijang Mill 2011 Kijang Kencana Plasma 2011 Riau Certified Ramarama 2010 Ramarama Estate 2010 Kampar- Certified Mill 2011 Amartajaya Plasma 2011 Riau Certified 2011 Indra Lestari Estate 2011 Certified Indra Sakti 2011 Indra Sakti Estate 2011 Indragiri- Certified Mill 2011 Indragiri Plasma 2011 Riau Certified 2011 Indrasakti Plasma 2011 Certified 2012 Bumi Lestari Estate 2012 Certified Bumipalma Indragiri- Mill 2012 Bumi Palma Estate 2012 Riau Certified 2012 Bumi Sentosa Estate 2012 Certified
1.9.2 Progress of Associated Smallholders and Outgrowers for Certifiable Standard Ivomas Tunggal has commited to create time management to entire units under each unit management in order to implement P&C standard to gain RSPO certificate and the auditor team has considered this plan has been proper with System of RSPO Certification for Partial Certification. Develoment and follow-up of this plan shall be verified and be reported on annual routine trip.
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2.0 ASSESSMENT PROCESS
2.1 Certification Body PT Mutuagung Lestari Jl. Raya Bogor Km 33,5 No. 19, Cimanggis - Depok 16953
Telp. +62-21-8740202; Fax +62-21-87740745/46 Website: www.mutucertification.comEmail : [email protected]
2.2 Assessment Team 2.2.1 Lead Auditor and Tim Auditor ASA-1 1. Oktovianus Rusmin (Lead Auditor Witnesser). Bachelor’s Degree in Social&Political SciencesDepartment of Anthropology. Specialistsinthe field ofSocial and Cultural(Social Impact &Conflict Resolution) andHCVF. Followed theForestManagementAuditorTraining(FSC Standard), ISO 14001EnvironmentalManagement SystemTraining,SVLK (wood legality) auditors, Indonesian Sustainable Palm Oil (ISPO) Lead Auditor training course and RSPO Lead Auditors Training Course endorsed by Proforest and WildasiaHe wasseveraltimesinvolved in theassessment ofSustainable Forest ManagementCertification(Standard LEI). Had workedat the Center forthe studyof Anthropology, University of Indonesia; and expertstothefieldof SocialTropicalForest Trust(TFT) Indonesia. He was numerously involved theSocialImpactStudyand Identification HCVinOil Palm Plantationsandnaturalforestconcessions.During the assessment activity, he was Lead Auditor Witnesser. 2. Ardiansyah(Lead Auditor Witnessed). Bachelor of Forest ResourcesConservation, Departmentof Forestry, Bogor Agricultural University. Hehas followedseveralactivities for identified environmental impact such aspreparingEIA documentfor plantation and plantation forest. He has followed several trainings namely: Management System Certification (ISO 9001-2008/SNI 19011-9001:2008), SMK3 based on OHSAS, RSPO Lead Auditors Training Course endorsed by Proforest and Diameter, Indonesian Sustainable Palm Oil (ISPO) Lead Auditor training course and mapping for land cover analysis. During the assessment the auditor verified the environmental aspect and legal aspect. 3. Moh. Arif Yusni (Auditor).Bachelor of Agriculture, majoring of Plant Pest and Diseases (Plant Protection). He has a working experience for 2 (two) years in oil palm Plantation Company in Indonesia. Trainings attended namely: Indonesian Sustainable Palm Oil (ISPO) Lead Auditor training course and Auditor/Lead auditor Management System Certification (ISO 9001-2008),. Now he worked at Professional Certification Body. He has beenseveraltimes followingauditrelated tosustainablepalm oilcertification systemas an auditor. During the assement the auditor verified Labour and Welfare worker. 4. Andi Pratama (Auditor). Bachelor of social economy and agribusiness a course of study agricultural university faculty of Jember. He had followed the training of auditor sustainable Indonesian palm oil (ISPO). He has experience of work for five years as an operational staff in several plantation companies in Indonesia private oil palm plantation. Currently working on certification body as independent auditors. Auditor conducting assessment in the management of a plantation of pest and disease of plants. During the assessment the Auditor verified Best management Practice. 5. Brigitta Prita (Auditor Trainee). Bachelor of Forestry, Department of Forest Resources Conservation and Ecotourism, Bogor Agricultural University. Attended training ISPO Auditor training, certification of ISO 9001:2008 Quality Management System (QMS), Training IHT Awareness RSPO, Training QMS 19011, IHT Awareness 17021 and 17065 and Training HCV. During the assement the Auditor verified High Conservation Value and environmental.
2.3 Assessment Methodology, Assessment Process and Locations of Assessment 2.3.1 Figure of person days to implement assessment ASA-1 Number of auditors: 5 auditor Number of days for Surveillance-1 at site: 4 days Number of working days for Surveillance-1 at site: 20 Working days
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2.3.2 Detail process ofassessment ASA-1 The assessment was conducted by measuring the sufficiency of implementation with the consistency done by the PTMeganusa Intisawit to the requirements of National Interpretation of the Republic of Indonesia from RSPO Principles and Criteria for Sustainable Palm Oil Production (RSPO INA-NIWG, May 2008 and/or Scheme Smallholders October 2009) and Supply Chain Requirement for CPO Mill.
The assessment was conducted in three methods: (1) document review, aiming to observe the sufficiency of types or substances from required documents; (2) interview, aiming to obtain more detailed information and cross check the information; and (3) field observation, aiming to observe directly the sufficiency of implementation on site.
Some opportunities for improvement of the results ASA- 1 delivered by the MUTU auditor to the management unit and the results are the subject will be verified at the next assessment phase ASA-2.
The assessment program please find Appendix 2.
2.3.3 Locations of Assessment
ASA-1 Sample Locations are taken by Auditor team based on : 1. Number of minimum sample location defined by formula 0.8 √y. 2. Selected locations are representating each operational area. 3. Consideration of issues arising from the documents review that are fundamental, essential, and becoming results of public consultation.
Locations visited includeIndrasakti Mill, Indrasakti Estate,Talang Sukajadi Cooperative, Jaya Bersama Cooperative, Talang Subur Cooperative, and Margo Mulyo Cooperative.
Indrasakti Mill Workshop, based on field visit found that Boxes of First aid kit and Light Fire Estinguisher had been monitored routine and based on interview with worker (welder) known that the worker have understood about their rights such as minimum wage, medical test, PPE. Chemical warehouse; Central warehouse; Olie warehouse, based on field visit found that Boxes of First aid kit and Light Fire Estinguisher had been monitored routine, there are eye shower, symbol of hazardous material andMSDS for each material. Based on interview with personnel in warehouse known that the personnel have understood about their rights such as minimum wage, medical test, PPE. Hazardous waste storage, based on field visit found that Boxes of First aid kit and Light Fire Estinguisher had been monitored routine, there are symbol of hazardous waste, second containment, and eye shower. Hazardous waste which storaged are batteries, contaminated rags, fluorescent lamp, and oil filters. Water Treatment Plant (WTP) and water reservoirs, based on interview with personnel in WTP known that the personnel have understood about his rights and responsible. There is flowmeter which well function. Waste Water Treatment Plant (WWTP), based on field visit found that Boxes of First aid kit at WWTP area and there are flowmeter for land application. Based on interview with personnel in WWTP known that the personnel have understood about his job and the personnel already given his rights such as minimum wage, medical test, and PPE.
Indrasakti Estate Workshop, according to field visit, First Aid box and Fire Extinguisher has been inspected routinely and according to interview with workers (weld expert), it was found that workers have been given rights in term of salary, medical check up, OHS equipments in accordance with the valid law. Chemical Warehouse; Central Warehouse; Oil Warehouse,according to to field visit, First Aid box and Fire
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Extinguisher has been inspected routinely, eye shower, Hazardous Material symbol, MSDS for each material. According to the information of warehouse worker, workers have been given rights in term of salary, medical check up, OHS equipments in accordance with the valid law. Hazardous Waste storage, according to field visit, First Aid box and Fire Extinguisher has been inspected routinely, Hazardous Waste symbol, second containment, alarm bell and eye washfor emergency response. The stored Hazardous Waste are used battery, used majun cloth, used lamp, and used filter. Central Clinic, clinic facility observation and interview with company doctors and medical assistants in term of periodic medical check up, work accident, health program, cost for medical recovery and medical waste management. Landfills (Blok H54), Observation and interview in term of domestic waste management. Housing (Divisi 1), Observation and interview with employees family term of given facilities of company like employees housing type G1 and G2, worship place (mosque), Creche / Child Daycare, educational facilities (PAUD, Indrasakti Kindergarten and Elementary School), clean water facility, generator house and domestic waste management. HCV Area (Block H 51), Observationand interview with HCV officer, in term of identified area as HCV 1.1 and HCV 1.4; spray and poles boundary in HCV area. Harvesting (Block H40), Observation and interview with harvesting foreman and employees in term of harvesting procedure, aspect of OHS, salary system and harvest premium. According to the result of interview, harvesting employees have aware and conduct harvesting instruction in accordance with procedure applied, using personal protective equipment (PPE) and aware of wage calculation and harvest premium. Observation of land application area (Block H40), Observation and interview with land application foreman. According to observation result, there is application area for 343.65 Ha. Daily recapitulation showed that during January – October of 2014, palm oil effluent has been applied for 162,930 m3. Effluent is distributed by LA foreman daily, the process of effluent distribution is assissted and monitored by two employees to ensure effluent current keep on track on the available flat bag. Herbicied Application/spraying (Block G41), Observation and interview with foreman and spraying employees. According to the interview result, foreman and employees have awared of work instruction in term of herbicide application process, aware and recognize dangerous chemicals symbol, aware of the prohibition symbol of herbicide application in riparian and conservation area and able to demonstrate proper work method in accordance with procedure authorized by company. Barn Owl Box/ gupon No. 20 (Block H44), Observation and interview with Division Assistant. According to the interview result, there is application of barn owl box installation with hectare cover 1:20 (1 unit for 20 Ha) and routinely monitored. Monitoring result is well documented. Observation of Land Use Title Poles No. 23, 34, 35, 45, 36, 40, 42 (Blok H52), No. 44 (Block H47) and No. 01 dan 03 (Block H46), Observation of Land Use Title pole. According to observation result, Land Use Title poles are on good condition and well cleaned and well secured. Road Maintenance (Block G41), Observation of the implementation of road maintenance realization. According to observation and interview result with management, company consistently conducts routine road and bridge maintenance, therefore, all roads can be passed in any conditions/ all weather roads.
Talang Sukajadi Cooperative Chemicals Box Washing Station, Observation related to the management of Hazardous Waste of chemicals boxand handling of the used washed. Harvesting (Block H52), According to field observation, harvesting has been conducted in accordance with valid SOP. Harvester has aware the valid procedure of safety work, harvest basis, and valid waging system. Talang Sukajadi Cooperative – Talang Sukamaju Village, Interview with the board of cooperation in term of
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procedure for cooperating with MNIS Company and cooperation management system which consisted of several Smallholder groups (9 Palm Oil Smallholder Group). Talang Sentosa Smallholder Group, Interview with the member of smallholders group in form of maintenance activity, harvest cycle, procedure of FFB delivery to MNIS POM.
Jaya Bersama Cooperative Barn Owl Box (Block A3), Tim Auditor team conducted observation in term of implementation of natural rat pest control using Tyto Alba. Harvesting (Block A1), According to field observation, harvesting activity has been conducted in accordance with valid SOP. Harvester has well known the valid procedure of work safety, harvest basis, and the valid waging system. Chemicals Box Washing Station (Block A2), Observation related to the management of Hazardous Waste of chemicals packageand handling of the water used to wash. Barn owl box/ gupon (Block A1), Observation and interview with Scheme Smallholder Division Assistant. According to the interview result, there are 3 units of barn owl box made of drum and plastic with hectarage cover 1:70 (1 unit for 70 Ha) and routinely monitored. Monitoring result has been well documented. Planting of Vetiver grass (Block A1), Observation of Vetiver grassplanting. There are Vetiver grass planting which is conducted by farmer along water banks of Blok A1to keep riparian area. Harvesting (Block B3), Observationand interview with scheme smallholders related to harvest procedure, OHS aspects and waging system. According to the interview result, scheme smallholders has comprehended and conducted harvest instruction in accordance with procedure, using personal protective equipment (PPE) and has understood waging calculation. Nursery of Biological Control Agent (Block A42), Field Observation in term of nursery of Biological Control agent. According to interview with scheme smallholder assistant, Cooperation/KOPSA of Jaya Bersama has conducted planting of Nature Management Agent in Scheme Smallholder estate as an effort of pest early detection, particularly UPDKS.
Margo Mulyo Cooperative Barn owl box (Block F7), Auditor team conducted observation in term of implementation of natural rat pest management usingTyto alba. Harvesting (Block F7), According to field observation, harvesting has been conducted in accordance with valid SOP. Harvesters have understood well the valid procedure of safety work and valid waging system. Chemicals Box Washing Station, Observation related to the management of Hazardous Waste of chemicals boxand handling of the used washed. Barn Owl box/gupon (Block F7), Observation and interview with Scheme Smallholder Division Assistant. According to the interview result, there are 22 unit of barn owl boxes which is consisted of 18 active units and 4 non-active units (damage), barn owl box is made of ferocement with hectarage cover 1:40 (1 unit for 40 Ha) and rountinely monitored. Observation cards are available in each barn owl box and the monitoring result has been well documented. Harvesting (Block F7), Observation and interview with scheme smallholders in term of harvesting activity procedure, OHS aspect and waging system. According to the interview result, scheme smallholders have understood and conducted harvest work instruction in accordance with the applied procedure, using personal protective equipment (PPE) and have understood the waging system.
Talang Subur Cooperative Talang Subur Cooperative – Talang Mulia Village, Interview with the board of cooperation in term of procedure for cooperating with MNIS Company and cooperation management system which consisted of several smallholder groups (21 Palm Oil Smallholder Groups). Observation and interview of plant treatment on location of KT 16 Nomor 4120, Interview with a SPO – 4006a.6 Halaman 15 Prepared Mutuagung Lestari for Indrasakti Mill – PT Meganusa Intisawit,Ivo Mas Tunggal
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member of smallholder group in term of treatment, harvest cycle and procedure of FFB delivery to MNIS POM. Observation on scheme smallholders area (observation of spray & manuring boundary, owl (Tyto Alba) usage for eradication of parasite plant is conducted as well.
2.4 Stakeholder Consultation and List of Stakeholders Contacted
2.4.1 Summary of stakeholder consultation process. ASA-1 Consultation of stakeholders for PT Meganusa Intisawit was held by: Public announcement at web mutucertification.com on 20 September 2014. Consultation meeting with Internal and Eksternal Stakeholder by interviews and local stakeholders conducted by visits to villages. Consultation with government institution was held on 21 October 2014, and consultation with local peoples was held on 22 and 23 October 2014. Beside that, Stakeholder consultation also conducted by email to NGO on 8 October 2014. Numbers of input from stakeholders were clarified by PT Meganusa Intisawit. 2.4.2 List of stakeholder contacted Please find appendix 1.
2.5 Determining Next Visiting
The next visit ASA-2 will planned on October 2015.
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3.0. ASSESSMENT RESULT
3.1. Summary of Assessment Report of the RSPO Certification
MUTUAGUNG LESTARI has conducted an assessment of Indrasakti POM – PT Meganusa Intisawit, PT Ivo Mas Tunggal operation consisting of one (1) mill, one (1) own estate (Indragiri estate), three (3) Scheme Smallholders (Indragiri, Indralestari dan Indrasakti). During the first Annual Surveillance Assessment there is no nonconformity against Major and Minor Indicator for P&C and also supply chain requirement for CPO mill, only three (3) opportunity for improvements were identified.
MUTUAGUNG LESTARI found that Indrasakti Mill– PT Meganusa Intisawit – Ivomas Tunggal, complied with the requirements of RSPO Principles & Criteria and National Interpretation, RSPO Principles and Criteria (P&C) for Sustainable Palm Oil Production, Republic of Indonesia - RSPO INA-NIWG, May 2008 dan untuk Scheme Smallholders, October 2009. Therefore MUTUAGUNG LESTARI Recommends RSPO Certification of compliance isRSPO Continued.
3.1.1 Summary of Assessment Report of the RSPO Certificationfor own estate
Ref Std. VERIFICATION RESULT of MUTU-Certification
PRINCIPLE #1 COMMITMENT TO TRANSPARENCY
1.1 Plantation and Palm Oil Factory have to give adequate information for stakeholders in appropriate language and forms, to ensure the effective participation of stakeholders in decision-making.
Company has a SOP information request and respon (SOP/SOP/SMART/LH-01), dated 01st July 2010. The duration to keep SPO document and record is 5 years based on SOP for document’s management (SOP/SPO/SMART/LH-02 on 01st July 2010. The record of information request and respon is documented on communication logbook in mill and estate, for example: a. Letter to head of police in Indragiri Hulu Regency No. 404/IDSE/Umum/08/2014 dated 27 August 2014 about Hinder Ordonantie (HO) permit in “Gedung Graha Wanita” Hasanuddin street, Rengat and had been respon by head of police in Indragiri Hulu Regency by letter No. SI/265/VIII/2014/INTELKAM dated 27 August 2014 about approval HO permit in “Gedung Graha Wanita” Hasanuddin street, Rengat. b. Receipt of Environment report and hazardous waste monitoring report of Indrasakti Mill (period July – September 2014) to Environment Agency of Indragiri Hulu Regency on 8 October 2014.
Based on the interview October 21,2014 with related agencies (Social, Labour and Transmigration agency, Plantation Agency, National Land Agency, and Environmental Agency). Each request for information has been respon by the company. For example, request for data required to report of local and foreign workers, reporting LPUP each semester, information related to environmental aspects and others.
Based on the interviews with the comunities inTalangMaju Village,BeliganVillage, Talang Bersemi Village that known there is not a request for information to the company during the period from January to October, 2014.
Status: Comply 1.2 Management documents are publicly available, except where this is prevented by commercial confidentiality or where disclosure of information would result in negative environmental or social outcomes. Company has list of information that can be accessed by stakeholders, such as: a. Number of personnel and list of salary. b. Personnel list and Taxation number (NPWP). c. information for tax (PBB) calculation. d. Environment document. SPO – 4006a.6 Halaman 17 Prepared Mutuagung Lestari for Indrasakti Mill – PT Meganusa Intisawit,Ivo Mas Tunggal
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e. Certificate of incorporation and amendments, the data area and production. f. Land use title. g. Social assessment report. h. Documentation of social activities. i. Safety and health program. j. Continuous improvement program.
Based on SOP for document’s management (SOP/SPO/SMART/LH-02 known The duration to keep SPO document and record is 5 years.
It is listed in the SOP “Pengendalian dan Masa Simpan Dokumen” No.document: SOP/SPO/SMART/LH-02 date of authorizationon July 1, 2010 which includes the type of the list of information that can be accessed by the public or stakeholders. TheSOP has been socialized to employees and stakeholders.
Status: Comply PRINCIPLE #2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS
2.1 There is compliance with all applicable local, national and ratified international laws and regulations. Company has SOP identification of regulations and other requirements (SOP/SPO/SMART/LH-03) dated 01 July 2012 which stated the government regulation that related to principle and criteria for producing sustainable oil palm and should be obey by company in term of land permit, occupational health and safety, environment and waste management, as well as manpower.
Company shows documents of regulations list and compliance evaluation, to ensure that all regulations (local, national and ratified international laws) and related regulations to sustainable oil palm and palm oil mill have been complied with.These include documents detailing the types of rules/regulations, the relevant provisions to be complied with, the implementation of the company, the fulfillment status, plan of action, persons in charge of, and compliance.
Types of laws and regulations that evaluated, are grouped by: a. Aspects of Licensing (updated 10 September 2014) - consists of 11 types of regulation; b. Aspects of the environment (updated 10 September 2014) - consists of 52 types of regulation; c. Aspects of Health and Occupational Safety (updated 10 September 2014) - consists of 46 types of regulation; d. Aspects of Employment (updated 10 September 2014) - consists of 33 types of regulations, and; e. Aspects of HCV (updated 10 September 2014) - consists of 7 kinds of rules.
Evaluation on the fulfillment of legal and regulatory requirements are conducted by comparing article by article of the regulations applicable to the current implementation by the company.
Company has making adaptation toward regulation’s revision, such as: Change of symbol and label of hazardous waste in accordance with Regulation of Environmental Ministry No. 14 year 2013 dated 28 December 2013. Based on field visit at hazardous waste warehouse in mill and estate known that the unit management has adjusted the symbols and labels of hazardous waste accordance with new regulation. Revision over salary in accordance with Riau Governor Decree No. 29year 2014 on 05 May 2014 about minimum wage sector of agriculture/oil plam and coconut plantation and also rubber plantation for Riau Province, amount IDR. 1,875,000. Based on salary slip and interview with workers known that worker salary that has been paid is already accordance with new regulation.
The Company is committed to compliance with all applicable laws and regulations, such as regulation related to Occupational Health and Safety, such as: 1. The Company has fulfilled its obligations to the manpower regulation No. 01 year 1976, by engage the company doctor to the training Hiperkes. 2. The Company has fulfilled its obligations to the manpower regulation No. 01 year 1979, by engage the company
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paramedic to the training Hiperkes. 3. The Company has fulfilled its obligations to the manpower regulation No. 01 year 1988, by engage the boilerman to the training OHS for pressure instrument. 4. The Company has fulfilled its obligations to the manpower regulation No. 09year 2010, by engage the operator of crane, crane grapple, backhoe loader, well loader, traktor, dan motor grader to follow training OHS for lift and carry instrument. 5. The Company has fulfilled its obligations to the manpower regulation No. 02year 1982, by engage the welder to follow training OHS for welder.
Based on the interview on October 21, 2014 with related agencies (Social, Labour and Transmigration agency, Plantation Agency, National Land Agency, and Environmental Agency) Show that company comply the regulation related with plantation.
Status: Comply
2.2 The right to use the land can be demonstrated, and is not legitimately contested by local communities with demonstrable rights PT Buana Wiralestari Mas (BWL) dan PT Meganusa Inti Sawit (MNIS) has some documents on the rights to control land of oil palm plantation area that it operates, as follows: (1) Land Rights (Building Use Title/ Hak Guna Bangunan) for area 316,934 M2, consist of: Certificate of Building Use TitleNo 01 Tahun 2002 dated 29 Nov 2002 on behalf PT BWL in Sungai Limau Village, District of Kelayangan, Regency of Indragiri Hulu. Certificate of Building Use TitleNo 02 Tahun 2002 dated 29 Nov 2002 on behalf PT BWL for area in Sungai Limau Village, District of Kelayangan, Regency of Indragiri Hulu. Certificate of Building Use TitleNo 03 Tahun 2002 dated 29 Nov 2002 on behalf PT BWL in Sungai Limau Village, District of Kelayangan, Regency of Indragiri Hulu. Certificate of Building Use TitleNo 04 Tahun 2002 dated 29 Nov 2002 on behalf PT BWL in Sungai Limau Village, District of Kelayangan, Regency of Indragiri Hulu. Certificate of Building Use TitleNo 05 Tahun 2002 dated 29 Nov 2002 on behalf PT BWL in Sungai Limau Village, District of Kelayangan, Regency of Indragiri Hulu. Certificate of Building Use TitleNo 01 Tahun 2002 dated 29 Nov 2002 on behalf PT BWL in Beligan Village, District of Siberida, Regency of Indragiri Hulu.
(2) Plantation business Permit Decree of Indragiri Hulu Regent Number 38 year 2005 dated 22 March 2005 about Plantation Business Permit on behalf PT MNIS for an area 875.158 Ha in Beligan Village, District of Siberida and Sungai Limau Village, District of Kelayangan. Decree of Indragiri Hulu Regent Number 396 year 2013 dated 25 September 2013 about Plantation Business Permit for Processing on behalf PT BWL for Palm Oil Mill capacity 60 Tonnes FFB/ hour in Talang Sukamaju Village, District of Rakit Kulim, Indragiri Hulu Regency.
Until ASA-1, there are still an areal of 875.158 Ha which under processing to land use title (HGU) in National Land Agency (BPN) Riau Province on behalf PT MNIS, with letters as follows: Letter No.13/D7L-Pku/03/2007 dated 9March 2007 on an area of 104.158 ha by attaching Establishment Deed, NPWP, BAA Compensation Implementation Date of 12 September 2001, Location Permit No.308 of 2002, the technical recommendation on Land Availability and Suitability from Agency of Forestry and Plantation Indragiri Hulu District, Plantation Business Permit, Arable Free RecommendationNo. 140.a/TP/100/2006 and applicant’s ID card (Letter received by BPN on November 21, 2007). Letter No.14/D7L-Pku/03/2007 dated 9 March 2007 on an area of 771 Ha attaching Establishment Deed, NPWP, BAA Compensation Implementation Date of 12 September 2001, Location PermitNo. 245 of 2002, the technical recommendation on Land Availability and Suitability from Agency of Forestry and Plantation Indragiri Hulu District, Plantation Business Permit, Arable Free RecommendationNo.140/TP/100/2006 and applicant’s ID card (Letter received by BPN on November 21, 2007).
Based on interview with officer of National Land Agency (BPN) Indragiri Hulu Regency known that all documents to process
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land use title (HGU) has been completed by PT MNIS but land use title (HGU) certificate not yet issued because still waiting spatial planning (RTRW) of Riau Province.
PT MNIS has been monitor boundary poles every month which documented on “Cheklist Kondisi Patok Perbatasan Indrasakti Estate”. Based on kadasteral map known that boundary poles owned by PT MNIS are 76 poles. Based in monitoring on September 2014 known that all poles is in well condition. Result of random verification over boundary pole in field, presents:pole No. BPN-28 in Block J-49 and pole No. BPN-30 in Block H-44 known that boundry poles is painted with red colour and clearly marked, Poles in a form of concrete pal with a size of 30 x 30 cm and height 60 cm, and poles in well condition.
Based on public consultation with Plantation Agency, National Land Agency (BPN) Indragiri Hulu Regency and communities around plantation known that there was no conflict between local communities and PT MNIS.
PT MNIS has procedures of Land Conflict Resolution Mechanisms revised I (SOP/SPO/SMART/LH-04) dated 1 July 2010, which explains that each claim land (with or without proof of ownership) should be solved by dialogue so that the claim can be canceled. If dialogue is not successful, the process followed by asking for help/facilitator of local government and local community leaders. Status: Comply 2.3 Use of the land for oil palm does not diminish the legal rights, or customary rights, of other users, without their free, prior and informed consent. Based on HCV document at PT MNIS and stakeholder consultation with government agency in Indragiri Hulu Regency there is not identified any cutomary rights. At field visit and interview with local people and community leaders in Talang Sukamaju Village and Talang Mulia Village also informed that there is no area of PT MNIS in customary rights. The company still provides access to the local people to get activities such as fishing at river, but not allowed to use poison to get the fish.
PTMNIS has also showed evidence of compensation payment to the land owner for the land which is used for estate and POM operational. For instance, compensation payment for community-cultivated land as location for the establishment of POM, based on Land Use Title in accordance with Location Permit No. 308 Year 2002 date October 11th 2002. Compensation payment was given for Sei Limau Village community, Kelayang Sub-District, land width is 129.652 Ha and Compensation Payment for Rp. 1,250,853,000, payment was conducted on September 12th 2001 using bank transfer of BNI 46 Bank to each compensation receiver. Compensation payment has been witnessed by Head of Kelayang Sub-District, Chief of Limau Village, Head of Village Resilience Council, Chief of Hamlet and Head of Neighbourhood Ascosiation. Status: Comply
PRINCIPLE #3 Commitment to long-term economic and financial viability 3.1 There is an implemented management plan that aims to achieve long term economic and financial viability.
PT MNIS is able to conduct document of company long term work plan for period of 2014 to 2016 which contains production prediction, production cost (estate and mill), projection of mill production (OER and KER), and other financial parameter such as profitability, revenue andcost of FFB purchasing from scheme smallholder. Based on evaluation of budget and realization, on 2013 there are surplus 4% from budget where budget of 2013 is 395,281.81 tonness and realization is 409,834.79 tonness.
Replanting has not been planned up to next 5 (five) year due to the oldest plant is 18 years old (planting year of 1996). Company has technical Manual of Palm Oil Cultivation Nomor SMA/MCAR/01/05-07, which describes that replanting will be conducted when plant ages is more than 25 years old, plant height is more than 13 meters, production per year below 14 Ton/Haand number of plants is below 100 plants/ha.
Status: Comply PRINCIPLE #4 Use of appropriate best practices by growers and millers 4.1 Operating procedures are appropriately documented and consistently implemented and monitored. SPO – 4006a.6 Halaman 20 Prepared Mutuagung Lestari for Indrasakti Mill – PT Meganusa Intisawit,Ivo Mas Tunggal
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Estate of PT MNIS has had document of SOP-WI/IK of Technique of Palm Oil Plant Cultivation which was compiled by MCAR on 2012 started from land preparation to harvesting.The SOP document mentioned is consisted of Planning of New Area Planting, Planning for Replanting, Nursery, Pest and Disease Management, Weeds Management, Manuring, Treatment of Immature Plants, Preparation of Harvesting, Harvesting, Loading and Trasnporting FFB and Rainfall Rate Measurement using Ombrometer.
Indrasakti Mill has had SOP document of processing on dokumen SOP/SMART/MCMD/I/TM-PKS which has been issued on December 6th 2013, legalized by Leader of MCMD and Head of Upstream. The SOP covers standard operating procedure in POM which is consisted of: FFB receiving station, sterilization station, (boiling), thressing station (thressing, pressing station, clarification station (purifying), clarification station, nut and kernel station, boiler and engine room, water treatment station, fresh waste processing, final effluent, storage tank washing.
According to document observation, PT MNIS also has inspecting and monitoring procedure of estate and mill operational in form of Operational Internal Audit (OIA). OIA is conducted every semester (twice in a year) by OIA Department (Representative Office of Pekanbaru). For example, OIA audit result for the 2nd semester of 2014 which was conducted on August 13th 2014 for Indra Sakti Estate and scheme smallholder (Document No. 34/OIA/V-IDSE dan IDSA/08/14) is available. Audit covers are in term of agronomy and processing, providing goods, proessing of harvested fruits, finance administration, bank and memorial, debt administration, credit and hub of newspaper account.
Internal audit also has been conducted on Indrasakti Mill by Operational Internal Audit every semester. The recent internal audit was conducted on March 7th – 13th 2014 (Document No. 07/V-INKM/14). One of example of audit result is in term of the random CPO and PK cover letter numberization. Action plan conducted by manager and PIC of Indrasakti Mill is by re- managing numbering administration of CPO and PK covering letter and then followed by periodic inspection by administration head.
Company has documented daily operational activity on several documents, for example are Book of Foreman Activity (BFA/BKM), Book of Cutted Fruit Record (BCFR/BPtB), Book of Loosen Fruit Picking (BLFP/BKtB), Covering Letter of FFB delivery to Mill (CLoFFB/SPB) and weighing ticket. On those documents, the description of work item, work location, workers name, work achievement and other related information. For instance: harvest record on Cutted Fruit Record (CFR/BPtB) No.Seri BPtB IDSE 206069 (No. referensi BKM 151854) on September 30th 2014 in term of harvesting work in Blok H12, H13 and H14 work achievement for 1.564 bunches.
Recording of Indrasakti Mill daily operational activity has also well conducted. For example recording in term of daily production which describes information of the received FFB volume, processed FFB volume, processing quality (OER, KER, FFA, and others). And management unit also documenting sorting and grading activity in loading ramp and informing its result to entire nucleus estates and scheme smallholders as the evaluation data. Company has opportunity to review consistency of FFB recording activity at the field and at the sorting/grading station.
Based on field visit at Block H40, G41, H44 known that management unit has already implement harvesting activity, manuring and IPM in accordance with procedure.
Status: Comply 4.2 Practices maintain soil fertility at, or where possible improve soil fertility to, a level that ensures optimal and sustained yield. Unit management has conducted periodic soil analysis for every 5 years in nucleus estate and scheme smallholder estate which was conducted by SMARTRI. The recent soil analysis was conducted on November 2009. On that activity, the analysized substance were N, P, K, Mg, Ca and B. One of example of sampling of soil analysis location was located at blok G35.
Company conducted periodic leaf analysis once in a year in own estate and scheme smallholder estate. The recent leaf analysis on May 2014. On that activity, the analyzed substances are N, P, K, Mg, Ca and B. result of soul and leaf analysis conducted for the next assessment will be data standing for SMARTRI tro compile manuring recommendation for unit management. SPO – 4006a.6 Halaman 21 Prepared Mutuagung Lestari for Indrasakti Mill – PT Meganusa Intisawit,Ivo Mas Tunggal
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To keep and improve soil fertility, company conducted manuring in accordance with SMARTRI recommendarion (document of estate manuring recommendation in 2014 is available), aplication of fruit bunch ashes and land application of POM effluent. Entire activities mentioned previously is monitored and is recorded. For example, monitoring of manuring realization of land application in 2014. According to plan and realization, land applicationimplementation was conducted on Blok H39, H40, H41, H42, H43, H44, H45, G42, G43 and G44. With total area for 343.65 Ha. Since January – October 2014, palm oil effluent which has been applied was 162.930 m3.
Based on field visit at Block H40, G41, H44 known that management unit has already implement harvesting activity, manuring and IPM in accordance with procedure.
Status: Comply 4.3 Practices minimize and control erosion and degradation of soils. Management of PT MNIS has shown semi-detail soil map which was issued by Plantation Monitoring And Planning Divison (PMNP) with scale 1:50,000 (No.Reg. 472 /202/PMNP/VIII/2009), it contains informations of soil type, land topography, drainage condition of soil texture, land suitability class, boundary factor. Land topography conditions are flat and wavy with slope level 0 – 16% and there are several area with slope level 21-30 % for 25.40 ha or 2.44%. And, according to semi-detail soil map, there is peatland area for 171.55 ha with depth of 150 – 300 cm or 20.55%.
According to semi-detail map in term of topography condition, company has had procedure of planting management on area with specific slope. One of company strategy to manage area with specific slope is in accordance with SOP No. SOP/SMART/MCAR/I/TA-PPAin term of Plan of New Area Planting. Management strategies which are conducted are creating terrace contour, conservation terrace, individual terrace with Silt-Pit, and planting of conservation plants. Based on field visit at Block H51 shown that erosion control effort done by planting LCC and doing frond stacking.
PT MNIS committed to make accessible road in entire company operational area / all weather roads. Company has road maintenance program manually and mechanically using heavy equipments. Documentation of road maintenance can be seen on: Plan and realization of manual road maintenance on Division Work Program (DWP / PKD) on 2014. The document describes road condition, road length in each blok, monthly maintenance plan and realization. Plan and realization of frond prunning on Division Work Program (DWP / PKD) on 2014. The document describes plan and realization of frond prunning which cover the road in each blok in order to keep it dry. Budget allocation for heavy equipments on 2014, describes plan and realization of road maintenance, drainage, and bridge (especially main road/axis) using heavy equipments (road greader).
Result of soil analysis shows that there is peatland area for 170.55 ha which is planted in depth of 150 – 300 cm. Company has SOP of water management in peatland area which is purposed to keep the peatland area from subside and overdrain which cause peat layer subside quicker and the upper layer experience unhandled over dry. Type of water management activity in peatland area are: Making and Installing piezometer. Making Dam. Maintaining and washing drainage mechanically.
For mineral soil, company has implemented activity for improving soil fertility by utilization of palm oil effluent (land application) and utilization of bunch ash. Utilization of bunsh ash is conducted in entire Block, except in land application block.
Status: Comply 4.4 Practices maintain the quality and availability of surface and ground water. Company has shown SOP of riparian area protection with document number: SOP/SPO/SMART/LH-06 which was legalized on July 1st 2010. Type of the activities are: Making policy to prohibit palm oil planting along riparian with distance of 50 m left and right of the river. Making policy to prohibit land cultivation in riparian area by installing signboard.
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Making boundary road in the managed/planted area with protected area.
Company has shown SOP of riparian area management with document number SOP/SPO/SMART/LH-07 which was legalized on July 1st 2010. Type of the activities are: No chemicals usage and manual method only when maintaining 5 (five) palm oil plants on riparian area in protected area with distance 50 meters left and right of the river. No mechanical (machine and spreader) and manual method only when maintaining 5 (five) palm oil plants on riparian area in protected area with distance 50 meters left and right of the river. Plants to prevent erosion are planted on landslide-risk river cliff.
Company has conducted program of surface water management which is recorded on report of environment permit implementation of Indrasakti POM period of 1st semester (January – June 2014).
Entire test result show that substance of BOD5 and COD are exceeding quality standard which is regulated by Government Regulation 82/2001 Class 2. According to the test result, reservoir water will not be utilized for consumption and used only for clean water need.
No. Parameter Unit Quality Assessment Result Standard Semester I/2014 Block H44(Hulu) Block G42 Block G36(Hilir) 1. Ph - 6 -9 5.39 5.4 4.87 2. BOD5 mg/L 3 11.61 28.05 27.09 3. COD mg/L 25 48.9 71.36 91.92 4. DO mg/L 4 3.33 2.48 1.63 5. Total Phosphat (P) mg/L 0.2 0.083 0.068 0.091 6. Nitrat (No3) mg/L 10 5.4 3.1 4.2 7. Nitrit (No2) mg/L 0.06 0.014 0.02 0.029 9. Kobalt (Co) mg/L 0.2 < 0,2 <0.009 <0.009 Quality Standard: Government Regulation 82/2001 class 2. Source :Infrastructure Agency (Test Implementer Unit LP-750-IDN).
Result of surface water quality assessment on 1/ 2014 (Reservoir) No. Parameter Unit Quality Standard Assessment result of semester I/2014 Reservoir Water Jan Feb Mar Apr May Jun 1. Ph - 6-9 6.02 6.46 7.31 6.46 6.46 5.25 2. TSS Mg/l 50 mg/L 14 14 38 24 43 20 3. TDS Mg/l 1000 mg/L 42 72 86 40 90 79 4. DO Mg/l Min 4 mg/L 7 7 7 7 7 6 5. BOD5 Mg/l 3 mg/L 9 11 9 30 9 10 6. COD Mg/l 25 mg/L 31 40 35 Nd 34 36 7. Zn Mg/l 0.05 mg/L 0.02 0.05 0.05 0.03 0.04 0.02 8. Fe Mg/l 5 mg/L 2.33 1.55 3.18 1.7 3.72 3.49 9. Pb Mg/l 0.03 mg/L 0.03 nd nd nd nd nd Quality Standard: Government Regulation 82/2001 class 2. Source : Laboratory of Pekanbaru Infrastructure Agency – June 2014.
Assessment result of monitoring well – underground water in LA location of Indrasakti Estate Semester 1 2014. No. Parameter Unit Quality Assessment Result of Semester I/ 2014 Standard SP Inhabitant SP Blok G41 SP Blok G42 1. BOD - - 0.386 <0.1 3.096 2. COD Mg/L - < 2.053 <2.053 10.2 3. DO Mg/l - 4.05 4.01 3.67
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4. Ph Mg/l 6.5 – 9 3.92 4.6 4.31 5. Nitrat ( NO3-N) Mg/l 10 0.6 1.1 2 6. Amonia (NH3-N) Mg/l - 0.726 0.5 0.768 7. Pb (Timbal) Mg/l 0.05 0.028 <0.0024 <0.024 8. Seng (Zn) Mg/l 15 0.183 0.252 0.194 Quality Standard: Permenkes No. 416/ 1990 Source: Laboratory of Pekanbaru Public Works (PU) Agency 2014 year.
Test result of effluent BOD for March 2014, April 2014, and June 2014 which was conducted by SMARTRI Laboratory is available. Spot where test sample was taken was on waste pool. Entire assessment result show that substance of effluent BOD is below the threshold according to Quality Standard of Ministry of Environment Decree No. 29 Tahun 2003 (Maximum BOD is 5000 mg/L and pH 6.0-9.0), as follow:
Test Number Sampling Location Measurement Result SP.No.18/INKM-Riset/06/2014 Outlet Pompa LA BOD5 4,008 mg/L – pH 7.26 SP. No.003/INKM-Riset/05/2014 Outlet Pompa LA BOD5 4,209 mg/L – pH 7.81 SP. No.16/ INKM-Riset/04/2014 Outlet Pompa LA BOD5 4,748 mg/L – pH 6.30 SP No.002/INKM-Riset/03/2014 Outlet Pompa LA BOD5 3,854 mg/L – pH 6.30
Monitoring record of water usage for Indrasakti mill is recorded on Recapitulation of water usage and distribution on 2014 in Indrasakti Mill, Period of September 2014. The conclusion was, water usage is exceed 1.18 m3/ton FFB due to boiler operation outside FFB and Mill cleaning.
2014 Month Jan Feb Mar Apr May June July August Sept M3 Air/ Ton FFB. 1.76 1.28 1.39 1.30 1.27 1.20 1.13 1.04 1.12 Budget. 1.18 1.18 1.18 1.18 1.18 1.18 1.18 1.18 1.18 Status: Comply 4.5 Pests, diseases, weeds and invasive introduced species are effectively managed using appropriate Integrated Pest Management (IPM) techniques. PT MNIS management unit has commited to concern more on Integrate Pest Management (IPM) for pest management in operational area. Company has compiled IPM on the documents below: a. There are division work program on 2014. Programs of IPM are raising Tyto alba, pest disease census, rat census, planting and maintaining biological control agent (APH) and pest disease detection. For example plan of Raising ofTyto alba, there are 34 unit barn owl boxes from 49 projected owl boxes. 15 unit barn owl boxes are planned to be installed on 2014. Pest early detection is routinely conducted monthly, census will be conducted if the pest attack is detected. High pest attack (>5%) showed that managing action is urgently needed. b. Monitoring record of pest disease. For example, there is recapitulation of bagworm attack (UPDKS) on Block G43 for 5.05%. pest management is conducted by using asefat substance 75% insecticide.
Records related to IPM can bee seen on the documents below: UPDKS Census: there is record of bagworm census on September 2014 with level of attack varies between 0 – 28% (above economic threshold). Pest management which has been conducted also by injecting trunk using active substance of asefat 75% insecticide. Rat Census: there is recapitulation of rats attack on July 2014 with level of attack varies between 0 – 3.8% (below economic threshold). In order to control rats population, company is using owl. Company now has 34 unit of barn owl boxes from 59 barn owl boxes which is projected with control territory scale 1:15 Ha. Monitoring of barn owl boxes (gupon): there is recapitulation of barn owl box on September 2014, number of barn owl boxes are 34 active barn owl boxes. Treatment and planting of Biological Control Agent : Unill September 2014, planting and treatment of Biological Control Agent on roadside which are Turnera subulata, Casia tora and Antigonon leptosus.
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According to document review, company used 4 type of active substance pesticides:metil metsulfuron, parakuatdiklorida, isopropyl aminaglifosat and asefat 75% on September 2014. Related to pesticide application, company has calculating and documenting pesticide toxic level written on document of pesticide toxicity level monitoring which is calculated monthly. The monitoring document describes the term of index LD50, percentage of active substance, ammount of application annually, total of active substance, FFB production and toxicity level.
Status: Comply 4.6 Agrochemicals are used in a way that does not endanger health or the environment. There is no prophylactic use of pesticides, except in specific situations identified in national Best Practice guidelines. Where agrochemicals are used that are categorized as World Health Organization Type 1A or 1B, or are listed by the Stockholm or Rotterdam Conventions, growers are actively seeking to identify alternatives, and this is documented.
According to field observation in chemical warehouse and document review, company used 4 type of herbicides which have been registered and allowed by authorize agency. On the document usage for each pesticide usage, it describes type of pesticide used by company, type of active substance, and dosage/ha in accordance with usage recommendation. For example erkafurone withmetil metsulfuronactive substance for cycle spraying action, dosage of active substance for cycle spraying action, dosageactive substance for cycle spraying activity, dosage/Ha 0.04 Kg/Ha.
Company has shown evidence of spraying workers training course in form of attandance list and photographs documentation. Entire records of traning course are well stored. According to observation of Agrochemical Warehouse, company has shown entire MSDS is available in bahasa Indonesia version which could be well understood by entire employees. Document review result showed that company still use paraquat active-substance herbicide and company is able to show evidence of paraquat reduction yearly, it is shown by table below: Year Usage (L) Dosage/Ha 2012 328 0.42 2013 283.5 0.36 2014 211.1 0.31
According to field visit in used pesticide and fertilizer box washing station in Indrasakti Estate, entire employees has implement work procedure in accordance with IK/SPO/SMART/LH-09/01. Washing is conducted in the provided stations, package should be well cleaned (3 times washing for pesticide package and once for fertilizer package), water used for washing should not overflow and contaminate underground water, check mark for the washed pesticide package, and stored separately. Sack which has been washed will be immediately stored and dried on warehouse and then will be transported to the pesticide supplier.
Company has conducted medical check up program on September 2014 for 30 Estate employees whom work with chemicals. Result of medical check up shows employees health still under dangerous threshold. Medical check up covers blood check- up, unire check-up, and cholinestrerase andthorax, according to medical check-up result, medical check-up data shows that all employees health is normal. There are no pregnant and breastfeeding workers in Indrasakti Estate and workers have aware of policy that pregnant and breastfeeding workers are not allowed to work close with chemicals.
Status: Comply 4.7 An occupational health and safety plan is documented, effectively communicated and implemented. PT MNIS has Occupational Health and Safety (OHS) policy as the policy standing for implementing occupational health and safety program as evidence of commitment on OHSMS implementation. According to result of field visit in each operational unit (Estate and POM), OHS Program has been well documented and effectively imlemented.
Company has formed OHS Guiding Committee in each operational unit (Estate and POM) who are appointed as Person in Charge of OHS program, with organizational structure which consisted of caretaker, chairman, vice-chairman, secretary (Certified-OHS Expert), vice-secretary monitoring division, evaluation division, socialization division, and health division. Structure of OHS Guiding Comittee in each operational unit has been legalized by Indragiri Hulu Manpower Agency.
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Accident insurance for PT MNIS employees is in form of Labout Social Assurance (Jamsostek). Overall, entire workers (Permanent Employees, Daily Labour, and Contract Labour) has been registered as Jamsostek member. Company is able to show evidence which proves that entire employees has been registered on work accident insurance program. Result of interview with the workers during field visit and visiting labour union (SPSI), workers have aware that they are registered on work accident insurance program.
Company identifying high-risk workers whom work at noise area (mill and generator) and workers whom work close with chemicals (laboratory analyst, spraying workers, spraying foreman, and warehouse workers). And then periodic medical check-up shalll be conducted for high-risk workers in form of audiometri check-up, spirometri check-up, and cholinesterase check-up. On the company Procedure of Workers Medical Check-Up, it describes that high-risk workers get additional medical check-up in accordance with the risk level. Company has conducted medical check-up on September 2014 as the implementation of the procedure. According to medical check-up result, entire high-risk workers are healthy and able to work normally.
Company has conducted risk assessment on entire operational and office ativity, company shows assessment report of estate and mills. Risk assessment report describes the type of activity, incident frequency information, identification of danger spot (source/incident and impact), the exist control and early risk assessment (probability level, fatality level, and risk level), result of risk assessment will be continued by compiling report of risk assessment follow-up which describes type of activity, potential danger identification (incident and impact), early risk level and the next risk management plan (elimination, engineering control, substitution, PPE administration and usage). According to report of field visit at Indrasakti Mill, company has socializing document of Risk assessment and adhered it at several spots, and according to interview with employees, the employees have awared of danger source which threathened in each operational unit and preventive action should be applied.
Company has had procedure of alert and emergency response in form of Emergency Response SOP (SOP/SMK3/SMART/LH-09) which was authorized by Head of Envd & Sustainabilty Div on July 1st 2010. The identified emergency response situations are fire, explosion, contamination, natural disaster, riot, demonstration, and work accident. In general, SOP describes definition of emergency response and emergency reponses team, procedure of emergency response situation reporting, planning and handling of emergency response situation and recovery caused by emergency situation. Company formed emergency response structure as the implementation of the emergency response procedure which was authorized in Indrasakti Mill on February 20th 2013 and Indrasakti Estate on October 3rd 2012.
Company has provided PPE for entire employees which are: safety boot, work uniform, Helmet, Earplug, Masker and glove. According to field visit in POM, company has provided PPE for workers, for example the boiler operator use PPE which consisted of helm, masker, glove, earmuff and safety boot, furthermore, fire handling equipments such as Fire Extinguisher and hydrant which are spread on processing station other supporting station. According to the result of field visit to Chemicals Warehouse, Workshop, Hazardous Waste Warehouse in estate and mill, First Aid box has been monthly inspected.
According to the information of company’s doctor, company has conducted First Aid training course for workers on September 18th 2014. According to field visti of harvesting and chemist activity, foreman has been equipped with First Aid equipments. According to the interview result, foreman has received First Aid training course and aware of first aid method should be conducted for any work accident.
Company has conducted monitoring of the occured work accident, company shows Report document of annual work accident, the report describes victim’s data, impact of accident, factor of accident loss estimation and cause of accident. Record of work accident has been well documented, for example there was 1 case of work accident (60 days missing of work days) at Indrasakti Mill until September 2014. While there were 16 work accidents (0 day missing of work day) at Indrasakti Estate untill September 2014. Record of work accident in MNIS Company has been well documented, and periodically reviewed by secretary of OHS Guiding Committee. Furthermore, preventive action which is purposed to prevent similar work accident occured is available.
Status: Comply 4.8 All staff, workers, smallholders and contractors are appropriately trained. SPO – 4006a.6 Halaman 26 Prepared Mutuagung Lestari for Indrasakti Mill – PT Meganusa Intisawit,Ivo Mas Tunggal
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Company is able to show identification of Training Need based on job class which will be followed by employees of estate, Mill, and scheme smallholder. For example the scheduled training for scheme smallholder (Village Cooperation Unit) are Leaf Sample Unit (LSU), First Aid, handling of the ex pesticide container, simulation of Fire Extinguisher usage, traning of path maintenance, cycle and harvesting path, training of pest and disease handling, training of land fire, housing fire, and earthquake simulation, socialization of work procedure and MSDS.
Company has commitment to consistently improve each workers competence. Competence improvement is conducted through training courses such as First Aid training on September 18th 2014 which was attended by 38 employees of Indrasakti Estate, Indrasakti Mill and Scheme Smallholder with company doctor as the trainer.
Company has had list of contractors who cooperate with company. Evidence that company has appointed well trained contractors for example: the availability of company profile under the name of Quarta Karya Teknik Firm (Road Hardenning Contractor) which describes that the firm has SIUP, SITU, TDP, IUJK from local government and Certification of Firm registration of sub-division of mechanical and electrical supplier is available.
Status: Comply
PRINCIPLE #5 Environmental responsibility and conservation of natural resources and biodiversity
5.1 Aspects of plantation and mill management, including replanting, that have environmental impacts are identified, and plans to negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continuous improvement. Since assessment of ST-2 to ASA-1, there is no operational changes on PT MNIS, therefore, the owned-environment document is still in form of: Document of EIA for the operational of palm oil estate for 20,000 Ha (6,000 Ha in own estate and 14,000 in scheme smallholder estate) which was legalized by Ministry of Agriculture through Letter Number 22/ANDAL/RKL- RPL/BA/VI/1998 on June 8th 1998. Document of Environmental Management and Monitoring Effort for palm processing operation with capacity of 60 ton FFB/hour was legalized by Indragiri Hulu District Environmental Impact Control Agencythrough Letter Number 794/Bapedalda-Inhu/IX/2003 on September 22nd 2003.
Company has conducted environment management and monitoring in accordance with environmental documents owned by company and report it once in every 6 months to the related agencies. Company is able to show record of environmental management and monitoring operation report which has been reported to related agencies (Indragiri Hulu District Environmental Agency), for example the Implementation Report of Environmental Management and Monitoring Plan on 1st semester of 2014 of PT MNIS which is reported to Indragiri Hulu District Environmental Agency on September 16th 2014.
Status: Comply 5.2 The status of rare, threatened or endangered species and high conservation value habitats, if any, that exist in the plantation or that could be affected by plantation or mill management, shall be identified and their conservation taken into account in management plans and operations. PT MNIS has had document of High Conservation Value (HCV) Identification Report. Identification process was conducted by Biodiversity and Conservation Section Team – SMART Company on March to October 2012. Public consultation with community and other parties has been conducted on August 29th to September 5th 2012. Report of HCV Identification has been reviewed by Peer Review by Dr. Ir. Nyoto Santoso, MS on December 2012. According to result of review, HCV of area width 6.12 Ha and 5 HCV are identified, which are consisted of: HCV 1.2 – consist of cekakak belukar, cekakak sungai, serak jawa, macan akar, beruk, ular kobra, biawak. HCV 1.3 – Area with natural vegetation and lake buffer zone of area witdh 6.12 Ha; HCV 4.1 – Area with natural vegetation and lake buffer zone of area witdh 6.12 Ha;
Follow up of the identification activity has been compiled on Plan and Managament of HCV area, activities which are conducted are: SPO – 4006a.6 Halaman 27 Prepared Mutuagung Lestari for Indrasakti Mill – PT Meganusa Intisawit,Ivo Mas Tunggal
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Installation of Signboard at HCV Location and Suggestion/Signboard for not conducting illegal activity. Consisted of 1 HCV 1.3 ; 4.1 identity signboard and 2 information signboard of the protected animals. Installation of HCV area Boundary Pole. Consisted of 4 area bounday poles of HCV 1.3 ; 4.1 area and 4 spray boundary poles. Creating HCV area is also conducted by installation of Red X Mark on the outmost palm oil plant. Socialization to Community and Employees (Socialization to Employees every month and Socialization to Community on September 2014). Species Monitoring (Monthly). Patrol (Monthly).
According to field visit in HCV area of HCV 1.1 and 4.1 (Blok H51), there are HCV location mark poles, signboards of no land clearing, no land firing, no flora and fauna taking, spraying boundary marked by red paint, and no spraying in reservoir area.
Poster installation and campaign of information through brochure has been conducted on estate area and other location as weel, which are: In Office of Sumber Rejeki Village Cooperative Unit, 2 unit of the protected fauna and flora posters and 1 unit of the protected fauna calendar. InOffice of Talang Sukajadi Village Cooperative Unit, 1 unit of the protected flora and fauna calendar. In Office of Margo Mulyo Village Cooperative Unit, 1 unit of the protected flora and fauna calendar.
HCV Socialization to entire employees and community in PT MNIS are: HCV Socialization which was conducted at IDSE office on September 3rd 2014 was attended by 16 foremen and generator operator. Subject of socialization covers: awareness and definition of HCV, riparian area need to be protected, maintenance is conducted manually and no spraying on riparian and reservoir, type of flora and fauna. Evidence of attendance list and photograph are well documented. Official Record of HCV socialization to Talang Sukajadi Village Cooperative Unit and Community at Sejahtera Village Cooperative was attended by 25 people on May 16th 2014 (the Board of Village Cooperative Unit, Farmer, Foreman, SPO Assisstant, Division Assistant, Field Coordinator, etc). Evidence of attendance list and photograph is well documented.
Company has had Environmental Officer of Indrasakti Estate under the name of Nuryono with appointment letter number 013/IDSE/INT/IX/2014 onSeptember 11th2014.
Status: Comply 5.3 Waste is reduced, recycled, re-used and disposed of in an environmentally and socially responsible manner. PT MNIS has had identification of environmental aspect which covers source of Indrasakti Mill waste contamination on 2014 which are:
No. Type of Waste Hazardous Waste Characteristic Hazardous Waste Source 1. Used Materials Toxic Generator Filter and Accumulator Battery 2. Used Majun Cloth Toxic Drum 3. Oil Spillage Liquid and Burnable Gear box, Loading CPO to Truck, Despatch CPO Pump, oil spillage from CPO transport truck, Pump and Water Pompa 4. Diesel Fuel Spillage Liquid and Burnable Generator, Diesel Fuel Tank 5. Used Filter Toxic Generator 6. Used Accumulator Battery Toxic Generator 7. Used TL Lamp Toxic Drum 8. Used Oil Drum Toxic Drum 9. Residue or liquid spillage of Toxic Liquid Drum chemicals solution sample
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Company has had licensed Hazardous Waste storage, the license has been acquired from the related agencies, which are: Indrasakti Mill: permits for Hazardous Waste Storage in accordance with Decree of Indragiri Hulu Environmental Agency Number 02 tahun 2011 On Januari 15th 2011.License is valid untill January 14th 2016 (5 years). Indrasakti Estate: permits for Hazardous Waste Storage in accordance with Decree of Indragiri Hulu Environmental AgencyNo:03/BPMD & PPT/BP-LB3/XI/2012 November 21st 2012. License is valid untill January 20th 2017 (5 years). According to field visit at Hazardous Waste Storage of Indrasakti POM and Estate, there are Hazardous Waste symbol, Hazardous Waste label and emergency response equipments (Fire Extinguisher, Eye Wash, etc). The stored Hazardous Waste are separated in accordance with its type such as, battery, oil filter, contaminated rags, lamp, and ex chemically container.
Hazardous Waste Monitoring. Company has conducted Monitoring of Hazardous Waste which come in and come out of the Hazardous Waste Storage. Monitoring result is documented on the report of Hazardous Waste balance sheet and is reported according to quarter-base period to the related agencies. The example of the Hazardous Waste balance sheet reports are: 3rd Quarter (period of July – September 2014) Report of Indrasakti POM Hazardous Waste Balance Sheet: this report describes the stored Hazardous Waste until September 2014 which are 550 liter (0.84 Tonness) of used oil, 60 Kg of used Battery, 15.5 Kg of used Filter, 1.5 Kg of used contaminated rags. This report has been delivered to the related agencies, such as to Indragiri Hulu District Environmental Agency on October 1st 2014. 3rd Quarter (period of July – September 2014) Report of Indrasakti Estate Hazardous Waste Balance Sheet: this report describes the stored Hazardous Waste untill September 2014 which are 0.5805 Ton of stored used oil, 0.282 Ton of used Battery, 7 Kg of used Lamp, 6 Kg of contaminated rags. This report has been delivered to the related agencies, such as Indragiri Hulu District Environmental Agency on October 6th 2014.
Company also documenting Hazardous Waste which are delivered to the licensed gatherer (Primanru Jaya Company) written on “Official Record of Hazardous Waste Handover” and document of Hazardous Waste/Manifest, which are: Official record of Hazardous Waste handover on July 14th 2014 from Hazardous Waste Storage at Indrasakti POM to Primanru Jaya Company. The delivered Hazardous Waste are 445 liter (374 Kg) of used oil, 120 Kg of used Battery, 27 Kg of used oil filter, 40 Kg of contaminated rags, and 6 Kg of ex chemicals container. Official record of Hazardous Waste handover on July 14th 2014 from Hazardous Waste Storage at Indrasakti Estate to Primanru Jaya Company. The delivered Hazardous Waste are 984 liter of used oil, 12 Ea of used Battery, 426 Kg of used Oil Filter, 3 Kg of contaminated rags, 6 Kg of used Lamp. Manifest Code 0016984, 0.984 Liter (4 Drum) of used Oil on July 14th2014 which was delivered by truck with vehicle number B9405NQA.This vehicle has got license in accordance with identity number letter B- 11165/Dep.IV/LH/PDAL/10/2013 October 8th2013. Manifest Code 0016990, 0.027 ton of used filter on July 14th 2014 which was delivered by truck with vehicle number B9405NQA. This vehicle has got license in accordance with identity number letter B-11165/Dep.IV/LH/PDAL/10/2013 October 8th 2013.
Medical Waste Management Company cooperating with Puri Husada Tembilahan Public Hospital conducted medical waste management. Puri Husada Tembilahan Public Hospital gathering medical waste from Bumi Palma Lestari Company (Still one group). Before the medical waste delivered to Puri Husada Tembilahan Public Hospital, medical waste is previously stored at Clinic of Bumi Palma Lestary Clinic. For example: Official record of 0.4 Kg of medical waste handover on September 10th 2014 from BSNE central clinic to Puri Husada Public Hospital is available. Official record of 0.9 Kg of medical waste handover on September 5th 2014 from BSNE central clinic to Puri Husada Public Hospital is available.
According to field vist to central clinic, medical waste is stored at specific garbage box for infectious waste and has been marked with Hazardous Waste symbol, medical waste delivery is conducted twice in a month.
Domestic Waste Management Result of field visit to Landfill of Blok H45, field visit location is located ± 1 km away from the settlement and drinkwater source. Transporting of domestic waste is conducted twice in a month. According to field visit to Housing of Division 1 of SPO – 4006a.6 Halaman 29 Prepared Mutuagung Lestari for Indrasakti Mill – PT Meganusa Intisawit,Ivo Mas Tunggal
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Indrasakti, garbage box is separated between anorganic and organic, furthermore, no burning needed.
Solid Waste Management Solid waste produced from palm oil process are shell, fiber, and empty fruit bunch. Management plan of shell and fiber utilization for boiler fuel in accordance with Waste Management Procedure (SOP/SPO/SMART/LH-09). While the empty fruit bunch is burned to ashes, then the ashes is applied to the land.
Status: Comply 5.4 Efficiency of energy use and use of renewable energy is maximized. The company has environmental management report Indrasakti Mill period Third Quarter 2014. PT MNIS which explains the usage monitoring and analysis of efficient use of renewable energy (Shells and Fiber) and energy from fossil fuels for the period from January to September2014,which consists of: Proces FFB: 296,777.92 Tonness. Shell is used : 11,730.078 Tonness. Fiber is used : 59,894 litter. Energy produced by combustion turbine (Combustionshell and fiber ): 6.015.480 kWh. Energy produced by genset : 183.910 kWh. Efficient Energy : 20,89 kWh/Ton TBS.
If the company does not use renewable energy, the fossil fuel required is 2,019,345.28 liter, so with the use of renewable fuels fossil that can be saved is 1,959,439.74 liters or 97.03%.
Status: Comply 5.5 Use of fire for waste disposal and for preparing land for replanting is avoided except in specific situations, as identified in the ASEAN guidelines or other regional best practice. PT MNIS has guidelines related to replanting program on SOP Nomor SOP/SMART/MCAR/IV/TA-PLB in term of New Land Clearing, SOP Nomor SOP/SMART/MCAR/II/TA-PRP in term of Replanting Plan and SOP Nomor SOP/SMART/MCAR/VI/TA- HPT in term of Replanting which is applied since June 12th 2012 describes that company has commitment in term of to land clearing/replanting of palm oil using zero burning principle in accordance with Plantation Director General’s Technical Guideline of Zero Burning Land Clearing of 2011. Stage of new land clearing / replanting on SOP is called blocking initiative, constructing road, constructing drainage, ex-weeds preparation (chemical system), ex-secondary mineral forest land preparation and constructing terrace (terrace contour, individual terrace).
According to the commitment written on SOP, company does not conduct analysis on replanting perparation which shall be conducted at future due to all replanting programms are conducted mechanically. Result of field visit and interview with the community nearby estate, auditors conclude that company implements zero burning principal on land clearing program.
Company has shown procedure of land fire handling according to document number: SOP/ NP/SMART/XI/LH002 authorized on July 1st 2010. The SOP describes process of how land fire occures, fire part, type of land fire, fire team’s duty and responsibility, procedure of fire handling, which covers: fire danger identification, fire extinguisher equipments, and post fire activity.
Company has conducted identification of fire area and location which are: area about on community’s land in Blok G34, G42, G35, H36, G43, H45, H46, H47, H52, Housing of G40 Employees, G39 generator house and boundary of H46 conservation area. Futhermore, fire patrol has been conducted periodically. PT MNIS has conducted several fire simulation, which are: Fire simulation at Blok H43/44 on October 1st 2014, was attended by emergency response team of PT MNIS, Indragiri Hulu Fire Brigade and Company-Guided Village Cooperation Unit representatives. Fire simulation at Indrasakti Estate area on August 31st 2013, was attended by 82 participants of PT MNIS emergency response team and Company-Guided Village Cooperation Unit representatives.
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Information of fire handling facilities was derived from fire emergency response procedure. According to that document, company has conducted data gathering of land fire handling facilities. According to data gathering on March 2013, there are 1 unit of tractor, 1 unit of water tank, 1 unit of hose, 1 unit of Nozzle, 1 unit of water pump, 6 unit of raincoats, and 2 unit of flashlights which are provided on central warehouse. Furthermore, there are also bakortiba drum filled with sand, wet sack, bucket, and 3 unit of spades which are provided at diesel fuel warehouse, central workshop and generator of IDSE division 1.
According to field visit at Indrasakti Estate workshop, company has 1 unit of water tank which is always located on the post, water pump condition is good, 1 unit of hose and 1 unit of nozzle. Company has recognized fire extinguisher facilities usage if land fire occured nearby estate.
Company also routinely conduct monthly monitoring of fire extinguisher facilities, the recent monitoring was conducted on September 2014. There is also structure of emergency response team and fire extinguisher facilities evaluation, according to evaluation which was made by OHS expert, number of facilities for handling fire is adequate for the simulated land fire.
Status: Comply
5.6 Plans to reduce pollution and emissions, including greenhouse gases, are developed, implemented and monitored. PT MNIS has identification of environmental aspect at Indrasakti Mill for 2014 which are: No. Location Source of Pollution and Emission Type of Waste Impact Potential Area Penerimaan 1. Weight bridge Emission of FFB/CPO/PK transport Smoke (Air) Air Pollution truck 2. Grading Truck Emission Smoke (Air) Air Pollution Area Nut & Kernel 3. Fiber and Shell Fiber Dust from Fiber and Shell Fiber Air Pollution conveyor conveyor Area Engine Room 4. Generator Emisi gas buang dari genset Smoke Air Pollution 5. Generator GHG Emissionof diesel fuel usage on Emission Air Pollution generator 6. Electricity on GHG Emissionof diesel fuel usage on Emission Air Pollution Generator generator 7. District conveyor Dust filter from fuel Dust. Conveyor Fiber Air Pollution 8. Boiler Start – up boiler Smoke Air Pollution Kernel Dispatch Area 10. Truck Emission from Kernel transport truck Smoke Air Pollution Laboratory Area 11. Laboratory GHG Emission from chemicals usage Emission Air Pollution Effluent Treatment Area (WWTP) 12. Kolam Limbah Methan gas from fermentation process Methan Gas Air Pollution of waste pool 13. Limbah Cair GHG Emissionfrom effluent Emission Air Pollution (GHG Emission) Contractor Area 14. FFB Truck Emission of FFB transport vehicle Smoke Air Pollution 15. Kernel Truck Emission of kernel transport truck Smoke Air Pollution
Furthermore, company has record evidence of non-moving emission quality monitoring at 1st semester period of 2014 (January – Juni 2014), by Mutuagung Lestari Company which has been acreditated by KAN. Testing of emission quality are conducted on Boiler, Generator, Incinerator. Furthermore, company also conducted noise test quality at Indrasakti POM. Entire test results are below the applied threshold, which are: SPO – 4006a.6 Halaman 31 Prepared Mutuagung Lestari for Indrasakti Mill – PT Meganusa Intisawit,Ivo Mas Tunggal
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Parameter Unit Quality Result ofemission test at Indrasakti Mill on 1st Standard semester period of 2014 Boiler I Boiler II Partikulat Mg/m3 300 18.2 58.9 SO2, Mg/m3 600 3 4 NO2 Mg/m3 800 80 159 HCL Mg/m3 5 0.89 0.85 CL2 Mg/m3 5 3.78 4.41 Opasitas % 30 19 19 Quality Standard: Decision of Environment Minister Number 07/2007.
Parameter Unit Quality Result ofemission test at Indrasakti Mill on 1st semester Standard period of 2014 Generator 1 Generator 4 Generator 3 Partikulat Mg/m3 120 1.3 1.8 2.8 SO2 Mg/m3 600 8 23 5 NO2 Mg/m3 1000 70 2 2 Opasitas % 20 8 6 12 CO Mg/m3 540 284 530 140 Quality Standard: Regulation of Environment Minister Number 21/2008.
No. Location Quality Standard Noise Intense (dBA) Notification 1. Engine room station 85-112 dBA 92 PPE Usage 2. Boiler station 89 PPE Usage 3. Nut and Kernel station 87 PPE Usage 4. Press stasiun 85 PPE Usage 5. Clarifiation station 85 PPE Usage 6. Stetrillizer station 76 PPE Usage 8. Softener 89 PPE Usage 9. Office 61 Proper Quality Standard of Ministry of Labour Regulation No. 13/MEN/X/2011 (dBA).
Parameter Unit Quality Result ofemission test at Indrasakti Mill on 1st semester period of 2014 Standard Incinerator 1 Incinerator 2 Incinerator 3 Incinerator 4 Partikulat mg/m2 150 2 2.6 1.9 4.9 SO2 mg/m2 800 60 60 35 46 NO2 mg/m2 1000 0.81 1.26 1.15 1.03 HCL mg/m2 5 0.81 1.26 1.15 1.03 Quality Standard: Ministry of Environment Decree 13/1995 Lamp VB.
Company also has record of effort and plan of pollution and emission reduction which are: Workshop work program – INKM Mechanical on October 12th and 19th 2014. Such as, replacing boiler condensate pipe flange and seat ring at sterilizer station, replacing upper plate of bunch conveyor line B (short) in thresher station, etc. Schedule of preventive maintenance at INKM on 2014. Such as, checkinghanger bearing, bushing, pen bolt, coupling, oil gearbox, andbearing.
Effluent produced by Indrasakti Mill is managed at WWTP which consisted of 8 (eight) ponds and then the effluent used for land aplication. INKM has conducted monthly monitoring of effluent at the last pond before effluent used for land application. Based on test result known that all parameters has been comply to standart quality of Environment Ministry Decree No. 29 Tahun 2003 (maximum BOD is 5,000 mg/L dan pH 6.0 – 9.0), such as: June 2014: BOD5 4.008 mg/L; pH 7.26 May 2014: BOD5 4.209 mg/L; pH 7.81 SPO – 4006a.6 Halaman 32 Prepared Mutuagung Lestari for Indrasakti Mill – PT Meganusa Intisawit,Ivo Mas Tunggal
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The management unit of Indrasakti Mill also doing daily monitoring the amount of effluent that applied for estate using flow meter. According to field visit at WWTP, there are flow meter in well condition.
Company has had license for utilizing effluent of Palm Oil Industry in accordance with Decree of Head of Indragiri Hulu Environmental Agency. Nomor : 23 year 2013 November 1st 2013. Permit is valid up to 5 years (November 1st 2018).
Status: Comply PRINCIPLE #6 Responsible consideration of employees and of individuals and communities affected by growers and mills
6.1 Aspects of plantation and mill management, including replanting, that have social impacts are identified in a participatory way, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate the continuous improvement. PT MNIS has had document of Social and Environmental Impact Assessment, which consisted of: a. EIA Document for estate under the name of PT MNIS which was approved by Agribusiness Agency, Agriculture Department in Accordance with Surat No. 22/Andal/RKL-RPL/BA/VI/1998 on June 8th 1998 with own Estate Study Coverage for 6,000 Ha and Scheme Smallholder coverage for 14,000 Ha. The projected POM capacity on EIA is consisted of POM I with capacity 60 Ton FFB/Hour and POM II with capacity 60 Ton FFB/Hour. Social impact which are important to be monitored are: - Handling of social restlessness due to Land conversion, which are LU I and LU II. - Handling of social restlessness due to land dispute. - Handling of social restlessness according to objection on costumary forest within nucleus area plan. - Handling of social restlessness according to consumed-plant farming sustainability. - Handling of social restlessnes according to negative impact of community health. - Handling of social restlessness due to Expand Company oil drilling operation. - Job Opportunity. - Increasing of Income. - Cooperation existence. from 6,000 Ha of the projected land for nucleus estate, it only realized for 875.159 Ha according to EIA review. b. Document of Environmental Management and Monitoring Effort of Buana Wira Lestari (BWL) Palm Oil Mill which was approved by Indragiri Hulu District Environmental Impact Handling Agency in accordance with Surat No. 794/Bapedalda- Inhu/IX/2003 September 30th 2003 in term of PT BWL Environmental Management and Monitoring Effort approvement. POM capacity on EIA is 60 Ton/Hour. The identified Social impact which probably occured due to POM operational are: - Empowering manpower (Absorption of local workforce, social envy, unemployement rate, income rate). - Purchasing and Transporting FFB (FFB marketing assurance, business opportunity is created). - POM Operational (Restlessness of community nearby POM, business opportunity is created, social envy). - Transporting of CPO (Positive and negative perceptionfrom community). c. Report of Social Impact Assessment with coverage of Palm Oil Mill, Own Estate and Scheme Smallholder Estate which was compiled on November 2012 by Environment and Sustainability Division of SMART Company Tbk.
Implementation of Environmental Management and Monitoring Plan (RKL & RPL) of PT MNIS has been periodically reported to the related agencies. Report of Environmental Management and Monitoring Plan Implementation of PT MNIS which has been delivered to Indragiri Hulu District Environmental Agency on September 16th 2014 and has been received by Head of Sub Division of General Affair is available.
PT MNIS also implements scheme smallholder program and has forming 16 scheme smallholder cooperative units. Management and monitoring of impact to scheme smallholder is described on document of Environmental Management and Monitoring Plan which is reported to Indragiri Hulu District Environmental Agency. Management of PT MNIS has also conducted routine monthly meeting and coordination with board of cooperative. The meeting is attended by Own Estate Manager, Scheme Smallholder Manager, Scheme Smallholder Assistant and smallholder group representatives. The meeting discusses several programs related to operational work plan for the next month. Status: Comply SPO – 4006a.6 Halaman 33 Prepared Mutuagung Lestari for Indrasakti Mill – PT Meganusa Intisawit,Ivo Mas Tunggal
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6.2 There are open and transparent methods for communication and consultation between growers and/or millers, local communities and other affected or interested parties. PT MNIS has had SOP of Communication and Consultation (SOP/NP/SMART/XIV/MCAR003). The procedure describes that communication could be conducted directly or through letter delivered to suggestion bin at office estate and mill.
The communication which are formed are in form of assistance proposal for fund assistance that would responded by company. Record of communication is documented on Book of Communication. Sample of nearby community aspirations are: Proposal Number 150/KUD-SR/X/2014, October 3rd 2014 from Board of Sumber Rezeki Village Cooperation Unit to Indrasakti Estate Manager in term of borrowing Heavy Equipment of Grader and Compactor. The proposal is responded by company management by lending Grader on October 4th 2014, record of the borrowed Vehicle Card is available. Proposal of Assistance of Beligan Village Mosque Construction on February 1st 2014. Management of PT MNIS has responded the proposal by giving fund assistance on February 20th 2014.
PT MNIS has also list of the classified stakeholder, which are: I. Government, Police Department, and Related Agencies: Village and Sub-District Administation Government. Police Department (Sub-District and District). Related Agencies (Province and District Social and Manpower Agency). Province and District Plantation Agency. Province and District National Land Agency. Riau Province and Indragiri Hulu District Social Labour Assurance Company (Jamsostek). Riau Province Income Agency. Province and District Forestry Agency. II. Local Community Figures. III. Worker Organization. IV. Management of Scheme Smallholder Cooperation. V. Local Contractor. VI. Community NGO (WWF and LINKS).
Officer who responsible for communicating and consulting with community according to Letter of Indragiri Regional Controller No. 001/RC-Indragiri/SPO/II/2011 February 2nd 2011 in term of Social Caretaker is Setyo Basuki (Indrasakti Estate Manager) as social caretaker. The duties should be conducted are: Responsible to management in term of the implementation of communication and consultation with stakeholder and act for representing management on the resolution of communication and consultation with the stakeholder. Building positive relation between company unit with the community, chief of costum/religion/community, social organization and related government aparatus nearby company unit.
Status: Comply 6.3 There is a mutually agreed and documented system for dealing with complaints and grievances, which is implemented and accepted by all parties. Company has a system to accept complaint which is written on Procedure of Complaint and Disgruntle Management with No. Dokumen PT MNIS-IDSE/SOP/25, Revision 00,June 13th 2013 and No. Dokumen PT MNIS-INKM/SOP/21, June 2nd 2013. According to that SOP, procedure of complaint management is divided into 2 type, which are: Internal Complaint: Complaint is delivered through Labour Union/ SPSI. Resolution of internal disgruntle will be resoluted in a forum and resolution shall use the valid Act/Statue (Bipartite) when the agreement does not reached on forum. External Complaint : Complaint is delivered by external party according to SOP of Communication and Consultation.
Record of complaint management is documented on the book of disgruntle and grievance, for example: INKM:during period of January – October 2014, there were 2 complaints from manunggal business cooperation in term of FFB fine and from INKM labour union in term of additional payment for celebrating eid mubarak. Response of the complaints and the resolution is available. SPO – 4006a.6 Halaman 34 Prepared Mutuagung Lestari for Indrasakti Mill – PT Meganusa Intisawit,Ivo Mas Tunggal
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IDSE: during period of January – October 2014, there were 11 complaints from several parties, for example: complaint from Bathin Thiau of Talang Suka Maju Village which was stating that road to kharisma is obviously need to be repaired immediately. Response to that complaint was by providing heavy equipments to repair the damage.
Company has had Procedure of Land Compensation which is written on Technical Guidelines for Land Preparation (SOP/NP/SMART/VII/D&L002) July1st 2010. Procedure and stage to implement land compensation by involving local community and related agencies is written on the procedure.
Status: Comply
6.4 Any negotiations concerning compensation for loss of legal or customary rights are dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions. Company has SOP of Land Compensation which is written on Technical Guidelines for Land Preparation (No. Dok.; SOP/NP/SMART/VII/D&L002), index number 6.2 to 6.7 which describes process of compensation is started by implementing joint inventory (land owner and company) for the area purposed to be leased. Negotiation process for the price is facilitated by Government District Team of Land Leasing.
Since Assessment of ST-2 to ASA-1 company does not expanding land area. The recent land compensation was conducted on 2002.
Status: Comply 6.5 Pay and conditions for employees and for employees of contractors always meet at least legal or industry minimum standards and are sufficient to provide decent living wages. Company waging system is made based on Regulation of Riau Governor No 29 tahun 2014 in term of Minimum Wage for Sub-Sector of Coconut and Palm Oil Plantation and Rubber Plant, the regulation which was made on May 5th 2014 has decided that minimum wage is IDR 1,875,000.00 (one million eight hundred thousand and seventy five million). According to result of employees wage slip review and interview with the employees, wage has been paid in accodance with valid regulation.
Company has Collective Labour Agreement which is a form of collective agreement between plantation company in entire Sumatera with board of Labour union in entire Indonesia and was agreed on November 14th 2012 to November 13th 2013 with expire period of 2 years. The Collective Labour Agreement was legalized in accordance with the Decree of Director General of Industrial Relation Kep 191/PJIJSK-PKKAD/PKB/XII on December 17th 2012 in term of registration of Collective Labour Agreement between CA-SEC (Cooperation Agency – Sumatera Estate Company) with Labour Union (SPSI).
According to field observation in IDSE housing complex, company has provided proper public facilities, for example - Living place: housing of type G2 permanent building with 2 bedrooms, parlor, kitchen, and restroom. Lighting is empowered by 45 KVA generator. Clean water source is distributed from the well maintained well. Separation for organic and anorganic domestic waste has been implemented. Anorganic waste is transported by garbage truck twice in a week and is gathered on Landfills. - Educational facilities : Educational facilities such as Playgroup (PAUD), Kindergarten (TK), and Elementary School. - Medical facilities : Clinic which is supported by Hyperkes-Certified doctor and medical assistants is available. - Public fasilities : Employees hall, daycare and Infomal Education Cottage which is purposed to children and wives activity within estate is available. - Worship facilities : Mosque and church. - Sport facilities : Soccer field and volley court.
Company is commited to use contractor which complies to manpower regulation. The commitment is written on SOP of Contractor Management No. SOP/SMK3/SMART/LH-26 which was reviewed and legalized by Head of Environment Department & Sustainability Division on July 1st 2010. Objective of this procedure is to assure contractor operation within company area concern aspect of environment and OHS. Procedure of Contractor Management covers contractor tender, supplier proposal review, contract of employment, inspection of contractor work and warning and sanction to contractor. There SPO – 4006a.6 Halaman 35 Prepared Mutuagung Lestari for Indrasakti Mill – PT Meganusa Intisawit,Ivo Mas Tunggal
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are Letter of Agreement No: IDSE/JKTO/04/014/056- in term of road hardenning on April 25 2014 between company representative and Contractor for heaping and hardenning the road in operational unit. The Letter of Agreement regulates compliance to the valid statue, for example: Tax and Labour Social Assurance (Jamsostek) (Clause 5). It describes that the first and second party must comply tax and Labour Social Assurance responsibilities in accordance with the valid regulation. Work Facilities (Clause 6). It describes that work facilities and personal protective equipments has to be provided in accordance with valid regulation.
Status: Comply 6.6 The employer respects the right of all personnel to form and join trade unions of their choice and to bargain collectively. Where the right to freedom of association and collective bargaining are restricted under law, the employer facilitates parallel means of independent and free association and bargaining for all such personnel. Chief Executive Officer 5 Smart has issued Letter Number: 045/CEO5-SE/11/2010, on November 16th 2010 to entire units manager, in term of Freedom to Unite on Labour Union. The letter describes that company complies the valid term and regulation in accordance to Act 21 Year 2000 in term of freedom to unite is considered as crucial right for the worker. Labour Union (SPSI) has been formed at PT MNIS and has been registered at Indragiri Hulu District Manpower Agency with No. 38/PUK SPPP-SPS/DINSOSNAKERTRANS/XI/2012 on November 14th 2012. The available audit implementation meeting record are: Invitation of Bipartite meeting from Leader of Labour Union (SPSI) of PT MNIS to entire Labour Union member (Nomor: 02/PUK SPPP-SPSI/PT.MNIS/04/2014, on April 8th2014). Minutes of Meeting of the Board of Labour Union of PT MNIS and Labour Union Member I Meeting, on April 12th 2014. Attachment of Photographs Meeting between Board of Labour Union of PT MNIS with Member of Labour Union on April 12th 2014. Attendance List of Meeting between Board of Labour Union of PT MNIS with Member of Labour Union on April 12th 2014. Attendance List of Socialization program of Employees Waging System on October 2nd 2014.
Status: Comply
6.7 Children are not employed or exploited. Work by children is acceptable on family farms, under adult supervision, and when not interfering with education program. Children are not exposed to hazardous working conditions. PT MNIS has had policy in term of workers age in accordance with the valid regulation, the policy is written on Circular Letter of HR Director No. 002/SE-HRDV/03/09 on March 31st 2009 which regulates that Minimum Workers Age is 18th years old in accordance with UU No. 13 tahun 2003. According to the result of employees data verification at Indrasakti Mill and Indrasakti Estate untill October 2014 (250 employees), there is no underage workers who are registered as company employees. Observation and interview during the field visit shows that there is no indication of underage workers.
Status: Comply 6.8 Any form of discrimination based on race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliation, or age, is prohibited. PT MNIS has Circular Letter of Chief Executive Officer PSM 5 No. 003/CEO5-SE/06/2009 on June 24th 2009 in term of the Implementation of Industrial Relation regardless tribe, religion, race, and gender in all type of work units. According to to the result of document verification of PT MNIS Empoyees untill October 2014, employees of PT MNIS are consisted of many different background of culture, such as: Gender: Male (97%) and Female (3%), religion: Islam (84%), Christian (16%), tribe: Javanese, Sundanese, Minangese, Acehnese, Batak People, Melayu People, Sulawesi People, and Talang People. According to field observation result and interview with office staff and workers, the Employees of PT MNIS have different background.
Status: Comply
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6.9 Policy to prevent sexual harassment and all other forms of violence against women and to protect their reproductive rights is developed and applied. PT MNIS has Circular Letter of CEO 5 No. 001/CEO5-SE/02/2009 on February 20th 2009 in term of socialization of Sexual Harassment issue describes that company has to socialize Sexual Harassment prevention to entire employees. Procedure of Sexual Harassment handling are: Victim of Sexual Harassment is can report it to Unity of Wives Staff of PT MNIS (Persatuan Ibu-Ibu Staf PT MNIS) or to the board of Female Worker Commission orally or written. Unity of Wives Staff of PT MNIS and the Board of Female Workers Comission shall accompany the victim to report to unit manager. According to the taken information and data, unit manager conducts investigation to get the evidence. Once the suspect is proven guilty, unit manager is able to punish the suspect in accordance with company regulation or law.
There are evidence of company policy implementation in term of Sexual Harassment prevention, for example: Minutes of Meeting of socialization in term of Sexual Harassment on October 9th 2014 which was located on Informal Education Cottage, taught by Company doctor (dr Noverma) and was attended by 29 participants (playgroup teacher, medical assistant, etc). Evidence of photograph is documented.
According to the interview with Vice of Indrasakti Estate Gender Committee; there is no Sexual Harassment occured. Employees are able to report it to Unity of Wives Staff of PT MNIS and the Board of Female Workers Comission orally or through letter.
Company has Circular of CEO5 No. 002/CEO 5-SE/03/2009 on March 2nd 2009 in term of Permit for Menstruation Leaves for female workers for 2 days off/month (First and Second day of Menstruation) with the notification of doctors examination.
Memorandum of VPA PSM 5 No. 001/SE/VPA5/12/08 on Desember 20th 2008 in term of pregnant and breastfeeding workers describes that company does not allow them to conduct spraying. Evidence of reproduction right protection implementation are: The detail report of employees attendance for period of January 1st 2014 to October 21st 2014 under the name of (Sumini who work as baby sitter) get leaves. Doctors recommendation letter which was stating that the addresse has got ill and need to have rest was attached. (examined by Estate Medical Assistant).
Status: Comply 6.10 Growers and mills deal fairly and transparently with smallholders and other local businesses. Company has documented the Official Record of Meeting Result of FFB Purchase Pricing Team for the Production per Estate on Riau Province No. 40/TPH TBS-X/2014 on October 14th 2014for period of price for Wednesday – Tuesday on October 15th 2014 to October 21st 2014. FFB purchasing price in accordance with the agreed calculation is written on the Official Record.
According to result of interview with smallholder of Jaya Bersama Palm Oil Cooperative Unit and Margo Mulyo Village Cooperative Unit, changes of FFB pricing from the company is routinely informed to smallholder. Furthermore, Information of FFB purchase pricing can be accessed directly from newspaper and electronic news.
Meeting of FFB pricing is conducted twice in a month by Pricing Team who are consisted of company representatives, palm oil farmer, and local government at Office of Riau Province Plantation Agency. Procedure of FFB pricing is discuessed on Meeting of FFB Pricing which is attended by Board of FFB Pricing and decided the policy such as: Official Record of Meeting Result of FFB Purchase Pricing Team for the Production per Estate in Riau Province No. 40/TPH TBS-X/2014 on October 14th 2014 for price period of Wednesday – Tuesday on October 15th 2014 to October 21st 2014. Method of FFB price calculation using formula FFBP = K{(CPOP x RCPO) + (HIs x RIs)}.
Company has shown evidence of Cooperative Agreement Letter between Sumber Rezeki Village Cooperative Unit with PT MNIS which are included on smallholder program. All parties are aware of contract, and the contract is considered fair, legal,
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and transparent proven on the signing of Cooperative Agreement Letter.
Furthermore, record of Cooperative Agreement Letter with the local community is available. For example Letter Agreement No. 002/IDSE/LKL/06/2014-Weed cutting service under the name of Agus Purwoko. The Cooperative Agreement Letter is for weed cutting job at emplacement area (housing complex, office, soccer field, and others).
Company has conducted payment for all contracts which were made, for example: 1. Close report is conducted on date 20th each month. Recapitulation of smallholder FFB payment and evidence of payment (Cek No. CFG194956) of Smallholder FFB of Talang Sukajadi Village Cooperative Unit for IDR925,896,450.- on October 9th 2014 is available. According to the document, payment has been paid in time in accordance with the negotiated payment period. 2. Evidence of Cooperative Agreement Letter Payment for weed cutting at emplacement area under the name of (No. Dokumen 1015399) the payment deadline is September 12th 2014 for IDR 3,387,843.According to the agreement, payment is based on midmonth payroll schedule (date 12th – 15th of each month).
Status: Comply
6.11 Growers and millers contribute to local sustainable development wherever appropriate. PT MNIS has Strategic Plan on the Implementation of CSR for period of 2013 -2017. The planned-Programs are: Education: purposed to improve the education quality of playgroup, secondary school, and high school, non-formal education, providing education facilities, improving teachers capacity and community’s skill. Health: purposed to improve health standard to create healthy and productive community. Economy : purposed to improve basic infrastructures of community transportation. Socio-Culture: purposed to keep value of art and culture on the community.
Record of company contribution to local development, for example: Recapitulation of CSR realization to 2013 which covers aspect of Social, Economy, and Environment. Recapitulation of CSR realization to September 2014which covers aspect of Social, Economy and Environment (Photographs of CSR implementation to the nearby community is attached). Purchasing of FFB from 16 Palm Oil Cooperation Units that has improved farmer’s income. Contract with the local contractor for transporting FFB and other work units.
Based on stakeholder consultation with related agency (Agriculture Agency) in District of Indragiri Hulu that knowed if smallholder program was realized by PT MNIS for the communities surround are 14,052 hectareage and already established 16 cooperative group. These smallholder program was contributed to income and welfare of community surround. It was also suggest of another business opportunity for communities, for example is EFB transportation is serviced by the community member adjacent of palm oil plantation area. Status: Comply
PRINCIPLE #7 Responsible development of new plantings
7.1 A comprehensive and participatory independent social and environmental assessment is undertaken prior to establishing new plantings or operations, or expanding existing ones, and the results incorporated into planning, management and operations. The company did not carry out any new development after November 2007.
Status: NA 7.2 Soil surveys and topographic information are used for site planning in the establishment of new plantings, and the results are incorporated into plans and operations. The company did not carry out any new development after November 2007.
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7.3 New plantings since November 2005, have not replaced primary forest or any area required to maintain or enhance one or more High Conservation Values. The company did not carry out any new development after November 2005.
Status: NA 7.4 Extensive planting on steep terrain, and/or on marginal and fragile soils, is avoided. The company did not carry out any new development after November 2007.
Status: NA 7.5 No new plantings are established on local peoples’ land without their free, prior and informed consent, dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions. The company did not carry out any new development after November 2007.
Status: NA 7.6 Local people are compensated for any agreed land acquisitions and relinquishment of rights, subject to their free, prior and informed consent and negotiated agreements. The company did not carry out any new development after November 2007.
Status: NA 7.7 Use of fire in the preparation of new plantings is avoided other than in specific situations, as identified in the ASEAN guidelines or other regional best practice. The company did not carry out any new development after November 2007.
Status: NA
PRINCIPLE #8 Commitment to continuous improvement in key areas of activity
8.1 Growers and millers regularly monitor and review their activities and develop and implement action plans that allow demonstrable continuous improvement in key operations. Company has conducted internal audit to monitor and review the operation, developing and implementing action plan. The internal audit program covers RSPO internal audit which were conducted by 6 auditors on September 8th 2014 – September 13th 2014. There were 10 findings and corrective action has been conducted.
The Company has conducte dan internal audit to monitor and review the activities, develop and implementation action plans. Internal audit activities include conducted Roundtable on 8 -13 September 2014 by 6 peoples. There are10 findings and improvements have been made related to it.
Status: Comply
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3.1.2 2 Summary of RSPO Certification Assessment Report for Smallholders
Ref Std. VERIFICATION RESULT of MUTU-Certification
PRINCIPLE #1 COMMITMENT TO TRANSPARENCY 1.1 Plantation and Palm Oil Factory have to give adequate information for stakeholders in appropriate language and forms, to ensure the effective participation of stakeholders in decision-making.
Record of information request and information response to the stakeholder is recorded on the book of cooperative communication, for example: Talang Sukajadi Meeting Invitation in term of Republic of Indonesia Independence Day in 2014, on August 5th 2014, was attended by board of cooperative, Chief of Talang Suka Maju, Head of Neighbourhood Ascosiation, Youth Ascositation Leader, Village Representatives and Community Figures.
Margo Mulyo & Talang subur Letter form Indrasakti Mill Manager with letter number 255/EM/IDLE/XI/2014 on September 8th 2014 in term of socialization of Additional Value Tax for the smallholder’s FFB distribution. As the response, attendance list of the meeting participants which was attended by 20 participants (Cooperative Credit Scheme coordinator, Village Cooperative Unit Secretary, Village Cooperative Unit Treasurer, Indragiri Plasma Representatives, Supervising Agency, Division Assistant, Representative of Talang Subur board and others) on September 15th 2014.
Furthermore, Talang Sukajadi Palm Oil Cooperative Unit has had official record of socialization of handling procedure and document storing period, procedure of communication and problem handling and diagram of the communication procedure on March 15th 2014. Socialization was taught by Assistant of Division 06 of IDSA (Ajie Prasetyo) and was attended by 15 farmers and supported with photographs of socialization activities.
Status: Comply 1.2 Management documents are publicly available, except where this is prevented by commercial confidentiality or where disclosure of information would result in negative environmental or social outcomes. Each cooperative has had list of information for the stakeholder in term of; 1. Contract between scheme smallholder management and smallholder. 2. Land ownership official letter/ownership official letter. 3. Training materials in term of IPM and the usage of safe chemicals for agriculture. 4. EIA document and Implementation Report of Environmental Management and Monitoring Plan. 5. Book of Complaint Record. 6. Procedure of price calculation and determining FFB quality. 7. Recent record of debt and payment, discount and cost.
There are socialization circular letter and SOP 2014 about communication and consultation with stakeholders that have been approved by the Head of cooperative and Estate Manager which held on June 2014. The circular letter has been attched in each board information of cooperative office in order to facilitate the public to access such information.
Status: Comply PRINCIPLE #2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS
2.1 There is compliance with all applicable local, national and ratified international laws and regulations. Smallholders Organization (cooperative) has complied the term and agreement of the valid Local and National, and International statue which can be proven with: SPO – 4006a.6 Halaman 40 Prepared Mutuagung Lestari for Indrasakti Mill – PT Meganusa Intisawit,Ivo Mas Tunggal
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ASSESSMENT REPORT a. Document of the complete cooperative legality is available in each office which covers document of: 1. Establishment Official Letter 2. Official Letter Revision of Cooperative Statue 3. Hinder Ordonantie (HO). 4. Registration Number of Cooperative. 5. License of Trade Business (SIUP). 6. Taxpayer Identity Number (NPWP). 7. Copy of land ownership right (Certificate) official letter of each cooperative member. b. List of Statue Regulation as the cooperative operational guidelines in each cooperative office is available. c. According to field visit on the smallholder estate operational, there is no nonconformity to the valid regulations in aspect of Environment, OHSMS, Manpower, Technical of Palm Oil Cultivation nor Cooperative Legality.
Based on the interview October 21, 2014 with related agencies (Social, Labour and Transmigration agency, Plantation Agency, National Land Agency, and Environmental Agency) Show that company comply the regulation related with plantation and Cooperative.
Status: Comply
2.2 The right to use the land can be demonstrated, and is not legitimately contested by local communities with demonstrable rights
According to the information of the cooperative board and cooperative member, they describes that smallholder’s area are: a. Ex-Transmigration Area program from government with composition of 20% from the native villager and 80% from Java who join the program of palm oil plantation establishment with Cooperative Credite Scheme. All participants of transmigration program used to have Land Ownership Right in form of Land Ownership Certificate (SHM), however, according to restructuring of estate blok in the beginning of Smallholders Cooperative Credite Scheme, hence all the certificates were recalled by Indragiri Hulu District National Land Agency. Several certificates has not yet issued by National Land Agency. b. Local village area who the community join program of palm oil plantation establishment with Cooperative Credite Scheme and for that case, the issuance process of Land Ownership Certificate (SHM) has not all issued by National Land Agency yet.
Evidence of the copy of land ownership official letter (Land Ownership Certificate/SHM) which was issued by Indragiri Hulu National Land Agency and stored in each cooperative office is availabe. There are 2 cooperative (Talang Subur and Jaya Bersama) which has not completely finish the issuance process of Land Ownership Certificate (SHM) for the member of the cooperative. According to the result of public consultation with Indragiri Hulu District National Land Agency, several Ownership Right Certificate for the member of cooperative are still on the issuance process.
According to the result of public consultation with several parties and interview with cooperation member, claim for the land whether from external and internal parties is never occured. Each cooperative member has aware the boundary of each land ownership right. Status: Comply 2.3 Use of the land for oil palm does not diminish the legal rights, or customary rights, of other users, without their free, prior and informed consent. Scheme Smallholder area of PT MNIS has legal standing in form of Land Ownership Certificate (SHM) which is issued by Indragiri Hulu District National Land Agency and according to document verification, information from cooperation board and interview result with other stakholders (Indragiri Hulu District Plantation Agency and Indragiri Hulu District National Land Agency), all parties state that there is no claim or objection from other parties in term of land ownership.
Status: Comply
PRINCIPLE #3 COMMITMENT TO LONG-TERM ECONOMIC AND FINANCIAL VIABILITY
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3.1 There is an implemented management plan that aims to achieve long term economic and financial viability.
Cooperative unit has annual management plan based on the result of ‘Annual Meeting of Cooperative Member’ which is implemented to achieve profit. Frrthermore, document of FFB production projection for the next 3 years is available, the documents are:
Production Budget Estate Cooperative Unit 2014 2015 2016 Indralestari Talang subur 41,869 41,869 41,937 Plasma Margo Mulyo 28,160 28,160 28,301
Usaha manunggal 23,371 22,689 21,957.26 Sejahtera 30,592.18 29,585.01 28,874.73 Hidup baru 24,614.26 23,843.66 23,012.84 Indrasakti Sumber rezeki 32,856.78 32,185.78 30,880.48 Plasma Manunggal 13,202.46 12,724.65 12,272.85 Talang sukajadi 13,914.18 13,914.18 13,398.84 Jaya bersama 7,048.08 7,048.08 7,048.08
Based on the realization of production is known that: Jaya Bersama Cooperative: budget under 2013, where the realization 6.236,95 ton and budget 7.028 ton Margo Mulyo Cooperrative:budget under 2013, where the realization 24.167,07 ton and budget 29.040 ton.
Status: Comply PRINCIPLE #4 USE OF APPROPRIATE BEST PRACTICES BY GROWERS AND MILLERS
4.1 Operating procedures are appropriately documented and consistently implemented and monitored. Village Cooperation Unit/Palm Oil Cooperative Unit is an organization for the smallholder who has guidelines of Good Agricultural Practice implementation for each smallholder. there is similarity between record of guideline for each Village Cooperative Unit/Palm Oil Cooperation Unit which establishing partnership with PT MNIS. The guidelines which are written on the document of guideline are: Procedure Guideline of Palm Fruit Cutting which is valid since April 2nd 2012 and was made by the head of cooperative and smallholder estate manager and was legalized by RC. Procedure Guideline of Loosen Fruit Picking which is valid since April 2nd 2012 and was made by head of cooperative and smallholder estate manager and was legalized by RC. Prcedure Guideline of FFB Transporting which is valid since April 2nd 2012 and was made by head of cooperative and smallholder estate manager and was legalized by RC. Procedure Guideline of circle maintenance and harvesting path which is valid since April 2nd 2012 and was made by head of cooperative and smallholder estate manager and was legalized by RC. Proedure Guideline of harvesting path maintenance which is valid since April 2nd 2012 and was made by head of cooperative and smallholder estate manager and was legalized by RC. Procedure Guideline of Manuring which is valid since April 2nd 2012 and was made by head of cooperative and smallholder estate manager and was legalized by RC. Procedure Guideline of pest disease management which is valid since April 2nd 2012 and was made by head of cooperative and smallholder estate manager and was legalized by RC.
According to document review, company has documented the implementation of GAP program on the documents below; Indrasakti Scheme Smallholder Talang Sukajadi Palm Oil Cooperation Unit: has had record of division work program on 2014. The document describes plan and realization of plant treatment such as manuring, harvesting path spraying and chemis harvesting path and others. SPO – 4006a.6 Halaman 42 Prepared Mutuagung Lestari for Indrasakti Mill – PT Meganusa Intisawit,Ivo Mas Tunggal
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Jaya Bersama Palm Oil Cooperation Unit: there is record of goods demand debt (MOP Fertilizer) on September 10th 2014. Furthermore, official record of handover of MOP fertilizer for 5,500 Kg on September 10th 2014. Transported by truck with vehicle police number BN 8108 LB.
Indralestari Scheme Smallholder Margo Mulyo Village Cooperation Unit: Record of division work program on 2014 is available. For example, record of work program of Spraying harvesting path in area of smallholder group 3 for 38 Ha has been realized on January and July 2014 (rotation application is twice in a year). Record of goods demand debt in form of KCI/MOP fertilizer for 9,450 Kg for fertilizer application on the 2nd semester of 2014 on September 30th 2014. Talang Subur Village Cooperation Unit: Record of stock card of herbicide warehouse which has been purchased from the supplier for 40 liters of herbicide is available. Entire herbicides has been applied to control weed at the circle, harvesting path, and Fruit Collecting Point at the operational area of Talang Subur Village Cooperative Unit.
According to the results of Field visit in each cooperative known that manuring activity, maintenance, and integrated pest management are suitable with established procedures.
Status: Comply 4.2 Practices maintain soil fertility at, or where possible improve soil fertility to, a level that ensures optimal and sustained yield. PT MNIS through SMART Research (SMARTRI) has conducted periodic soil and leaf analysis action in each cooperative in order to support program of fertilizer usage in accordance with the need palm oil plant according to identification of palm oil plant nutrition. According to that result, SMARTRI recommends to all palm oil smallholders that manuring is based on type of fertilizer, width, and dosage needed in accordance with leaf analysis result. Procurement of fertilizer is supported by company using cooperative credite scheme that the installment will be paid monthly.
Type of fertilizer which are distributed to each Village Cooperation Unit on 2014 are: Talang Sukajadi Palm Oil Cooperation Unit: Urea, TSP, MOP and HGFB. Jaya Bersama Palm Oil Cooperation Unit: MOP, Superdolomite and HGFB. Margo Mulyo Village Cooperation Unit: Urea, MOP, TSP and HGFB. Talang Subur Village Cooperation Unit: Urea, MOP, TSP, Dolomite and HGFB.
According to document review, there was production increase from 2011 to 2012. However, production reduce from 2012 to 2013. According to the information of palm oil farmer and staff, it was caused by 3 years production reduction cycle and supported with drought schedule change on 2013.
According to the result of interview with the smallholder in entire Village Cooperation Unit/Palm Oil Cooperation Unit, palm oil smallholders are never applying POM effluent (effluent nor empty fruit bunch to the land). The applied fertilizer is only the subsidized-anorganic fertilizer from partner company (PT MNIS) which is paid monthly.
Status: Comply 4.3 Practices minimize and control erosion and degradation of soils. Guideline of management of palm oil plant cultivation for the Indrasakti scheme smallholder and Indralestari scheme Smallholders is Manual GAP of own Estate (MCAR on May 2007). On the MCAR for Land Conservation are: Conservation Terrace (5 - 8); Contour Terrace (9 - 22). According to the Map of Indralestari Soil Depth Review (Scale 1:50,000) slopes interval is identified 0 – 58% (0 - 30) and Land Suitability Class of S2 (suitable average) and S3 (suitable marginal). According to the information of the Head of Village Cooperative Unit, there are 6 land of Smallholders Groups (SG/KT 18, 19, 20, 21, 22, 12) with wavy slope type. Soil and water conservation that has been conducted are individual terrace, Contour Terrace, and stacking frond to minimize soil erosion.
MCAR manual is a reference for road construction and maintenance for example: construction of drainage on the Main Road and Collection Road in form of side drain and vertiver grass planting in specific location to prevent erosion and soil
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Plant for land covering in early period of estate establishment are: Calopogonium caroleum (Cc), Pueraria javanica (Pj), Calopogonium municoides (Cm).
Based on Depth Review Soil Map of Indrasakti Plasma Estate (Scale 1: 90,000) was not identified peat soil and low lying areas. Based onin-depth review the soil map with a scale of 1: 75,000 was not identified any peat. The type of soil are Typic Dystrudepts inclusi and Histic humaquaepts.
Status: Comply 4.4 Practices maintain the quality and availability of surface and ground water. PT MNIS has given socialization/training in term of the principle of land and water conservation to the representative of Village Cooperation Unit/Palm Oil Cooperation Unit. Record of the socialization program is documented as below: 1. Talang Sukajadi Palm Oil Cooperative Unit: record of awareness and introduction of the rare, threathened, and endangered species and habitat which is considered HCV due to the impact of estate and mills operational management is available. The socialization was conducted at the Office of Talang Sukajadi Palm Oil Cooperation Unit on February 6th 2014 and was attended by 14 participants. 2. Jaya Bersama Palm Oil Cooperative Unit: record of awareness and introduction of the rare, threathened, and endangered species and habitat which is considered HCV due to the impact of estate and mills operational management is available. The socialization was conducted at the Office of Jaya Bersama Palm Oil Cooperation Unit on February 3rd 2014 and was attended by 9 participants. 3. Margo Mulyo Village Cooperative Unit: record of HCV awareness. This socialization was conducted at Indragiri mess on April 25th 2014 and was attended by 31 participants who consisted of (Board of Village Cooperative Unit, Community Figures and Chief of Village). Furthermore, planting realization ofGuatemala grass for 100 plants in left and right side of riparian has been conducted on September 7th 2013. 4. Talang Subur Village Cooperative Unit: record of HCV awareness. This socialization was conducted at Indragiri mess on April 25th 2014 and was attended by 31 participants who consisted of (Board of Village Cooperative Unit, Community Figures and Chief of Village). Furthermore, planting realization ofGuatemala grass for 90 plants in Blok E10, E11, B9, D8 and D11 on January 3rd 2013.
According to the result of interview with the smallholders at Jaya Bersama Palm Oil Cooperation Unit and Margo Mulyo Village Cooperation Unit, smallholder is able to describes the term of riparian protection by using bamboo, Vetiver grass and Guatemala grass. Furthermore, smallholder is also able to describes the term of non-chemical treatment in Blok A1 riparian.
According to document review and interview with smallholders, auditor concluded that the smallholders have aware the principle of land and water conservation and able to implement it. Practice to maintain the quality and supply of surface water and underground water has been conducted by smallholders, for example by planting bamboo to hold the soil, planting of Vetiver grass andGuatemala grass.
According to document review, there was reduction of herbicide usage which was applied by smallholder since 2011 to 2013.
Status: Comply 4.5 Pests, diseases, weeds and invasive introduced species are effectively managed using appropriate Integrated Pest Management (IPM) techniques. Village Cooperative Unit/Palm Oil Cooperation Unit has documented monitoring and management of pest disease. Early warning system in form of caterpillar detection is conducted once in two months and rat attack detection which is conducted once in three months. These are the record of pest program and management which has been documented: Talang Sukajadi Palm Oil Cooperative Unit: record of UPDKS management on 2014. UPDKS management which is conducted is pest detection/census (pest attack still below 5% untill September 2014), planting/treatment of biological management control (Turnera subulata)and pest management using chemicals (no chemicals used so far). Jaya Bersama Palm Oil Cooperative Unit: record of rats management on 2014 in form of rat attack detection/census, barn owl box monitoring and chemicals management. According to monitoring result, there is no rat attack above the SPO – 4006a.6 Halaman 44 Prepared Mutuagung Lestari for Indrasakti Mill – PT Meganusa Intisawit,Ivo Mas Tunggal
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economy threshold (>5%). Margo Mulyo Village Cooperative Unit: record of barn owl box monitoring which is conducted monthly. There are 22 barn owl boxes which consisted of 18 active and 4 unit un-active recently. According to monitoring on September 2014, there are 22 prime owls from 22 owl boxes. Owl box observation in Blok F7 showed that owl boxes condition are active indicated by the rest of bones and leather of the owl’s prey. Talang Subur Village Cooperative Unit: record and realization of biological management control planting and treatment which is supported by biological management control planting map on 2014.
PT MNIS as the business partner of smallholders has assisted smallholders to get information access in term of IPM. Record of socialization in term of pest management at meeting room of Talang Sukajadi Palm Oil Cooperation Unit on January 25th 2014 is available. Socialization in term of IPM management was conducted and socialized by Indrasakti Estate scheme smallholder manager and manager assistant.
Furthermore, record of IPM socialization at Talang Subur Village Cooperation Unit is available. Record of IPM training which was attended by 40 participants of smallholders group on July 14th 2014 and record of IPM which was conducted at meeting room of Margo Mulyo Village Cooperation Unit and was attended by 23 member of smallholders group on July 13th 2014 is available. Status: Comply 4.6 Agrochemicals are used in a way that does not endanger health or the environment. There is no prophylactic use of pesticides, except in specific situations identified in national Best Practice guidelines. Where agrochemicals are used that are categorized as World Health Organization Type 1A or 1B, or are listed by the Stockholm or Rotterdam Conventions, growers are actively seeking to identify alternatives, and this is documented.
Smallholders group cooperates with the company has made a list of pesticide which describes the information of pest target/weed target, dosage, and record of the usage time. Furthermore, company and smallholders group has made socialization program of IPM. According to the Book of Agriculture and Forestry Pesticide which was published by Republic of Indonesia Ministry of Agriculture Directorate General of Fertilizer & Pesticide on 2013, entire pesticides used by PT MNIS smallholders has been registered.
According to field visit at washing station of pesticide and fertilizer container in each cooperative unit, pesticide waste management is conducted following procedure below: Container is washed untill obviously clean (3 times washing for pesticide container and once for fertilizer container) at the provided station. Used water for washing pesticide and fertilizer container is stored at provided tanks in order to avoid underground water contamination. Washed used-package of pesticide and fertilizer are marked and stored separately, then is delivered to own estate (Indrasakti Estate) and stored inside the warehouse, then transported by pesticide supplier.
Result of document review shows that each cooperative unit still use herbicide with active substance paraquat and company is able to show the evidence of paraquat usage reduction annually, for example as shown below:
Tahun Talang Sukajadi Jaya Bersama Margo Mulyo Talang Subur Palm Oil Palm Oil Village Village Cooperation Unit Cooperation Unit Cooperation Unit Cooperation Unit 2012 160 Liter 120 Liter 264 Liter 389.40 Liter 2013 160 Liter 120 Liter 180 Liter 280.60 Liter 2014 80 Liter 100 Liter 100 Liter 179.6 Liter
Sparying workers are trained by Riau Province pesticide and fertilizer monitoring comission which was attended by 3 workers of Jaya Bersama Palm Oil Cooperative Unit, 5 workers of Talang Sukajadi Palm Oil Cooperative Unit, 6 workers of Margo Mulyo Village Cooperative Unit and 12 workers of Talang Subur Village Cooperative Unit on April 17th 2012.
Spraying workers in each cooperative unit have to follow annual medical check-up conducted by company doctor. Sparying SPO – 4006a.6 Halaman 45 Prepared Mutuagung Lestari for Indrasakti Mill – PT Meganusa Intisawit,Ivo Mas Tunggal
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ASSESSMENT REPORT workers of Talang Sukajadi Palm Oil Cooperative Unit and Jaya Bersama Palm Oil Cooperative Unit were medically checked on July 12th 2014, while for the spraying workers of Margo Mulyo Village Cooperative Unit and Talang Subur Village Cooperative Unit were medically checked on October 10th 2014. Medical check-up cover physic and blood pressure check-up. According to the result of spraying workers medical check-up, spraying workers condition are good.
Status: Comply 4.7 An occupational health and safety plan is documented, effectively communicated and implemented. Cooperative unit has policy to reduce dangers which are able to cause injury, disease, goods broken, fire, explosion and any kind of disturbance that potentially become obstacle for production process and cause the damage for the environement.
Responsibilities of the board of cooperative unit: Including occupational health and safety to the work aspect. Socializing occupational health and safety as the part of work aspect. Planning, developing, and implementing OHS program. Conducting effective effort to provide and create safe and healthy workplace.
Responsibilities of the member of cooperative unit Motivating other work partner to work safely. Cooperating to support and promote OHS at workplace. Reporting or correcting work procedure beyond the valid work procedure. Working in accordance with proper procedure.
Manual of smallholders OHS is based on term and regulation compiled by own estate management. Company is able to show the evidence of socialization in term of safe work practice in each cooperative unit. Periodic meeting in term of OHS is conducted once in three months. The meeting discusses the instruction of personal protective equipment required to be used by harvesting workers and spraying workers. Meeting of OHSMS involving leader, field coordinator, foreman, and smallholders group.
Company has conducted socialization or simulation of emergency response situation for the smallholders, for example: Event of Land Fire and Land Fire Extinguisher simulation which was conducted on October 1st 2014, the simulation covers: (fire identification and report, training of fire extinguishing using cap and fire club). Earthquake simulation which was conducted on October 1st 2014 (training of actions should be conducted when earthquake occured and evacuation when earth occured).
According to field observation of harvesting activity, foreman has been equipped by First Aid equipments. Furthermore, according to the interview with the foreman, First Aid training has been conducted to foremen, foremen have recognized and aware of First Aid method should be conducted when work accident and emergency situation appears. Result of the visitation to Cooperative Unit Office shows that the procedure of emergency situation handling and phoneable number is available.
According to document result, smallholders have formulir of annual monitoring recapitulation of Frequency Rate (FR) and Severity Rate (SR) 2012 - 2014 in term of work accident. According to the monitoring result for two year a row, there is no identification of work accident occured at Talang Sukajadi Palm Oil Cooperative Unit, Jaya Bersama Palm Oil Cooperative Unit, Talang Subur Village Cooperative Unit, Margo Mulyo Village Cooperative Unit. According to result of interview with land owner during the field trip, there is no work accident occured for period of 2014.
According to field observation, Cooperative party has provided PPE for workers, for example for harvesting, workers have been equipped by Helmet, Safety Boots, Glasses, Safety Cover, Gloves and has aware of potential dangers might occured if Personal Protection Equipments are not used.
Status: Comply 4.8 All staff, workers, smallholders and contractors are appropriately trained.
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Board of cooperative unit cooperates with PT MNIS have compiled program to improve competences of employees, smallholders, and board of cooperation. In general, training orientation purposed to improve technical ability of plant cultivation and safe procedure for the smallholders.
1. Training program are purposed to several technical abilities such as: - Road Maintenance. - Training of FFB quality and Grading. - Pest and Plant Disease Management. - Harvest and Frond. - Training in term of manuring. - Training in term of harvesting path. - Leaf Sample Taking.
2. Training program of Safety Work (OHS), such as - Training in term of OHS. - Training/socialization of PPE for harvester and sprayer. - Training/socialization of land fire at estate housing complex. - Training/socialization of Risk Assessment. - Socialization of MSDS and chemicals usage.
Record of training which was conducted by company and cooperative unit is well stored and well documented, for example: 1. Talang Sukajadi Palm Oil Cooperative Unit and Jaya Bersama Palm Oil Cooperative Unit. Training at Talang Sukajadi Palm Oil Cooperative Unit and Jaya Bersama Palm Oil Cooperative Unit was conducted at the same date due to cooperative is under the guidance of Indrasakti Estate Scheme Smallholder. - Training in term of OHS which was conducted on June 10th 2014. - Training in term of FFB quality and Grading fine whih was conducted on September 30th 2014. - Training in term of IPM which was conducted on February 20th 2014. - Training in term of Harvesting Path Maintenance which was conducted on March 15th 2014.
2. Margo Mulyo Village Cooperative Unit and Talang Subur Village Cooperative Unit. - Training of Integrated Pest and Disease Management which was conducted on July 13th 2014. - Training of FFB Quality which was conducted on January 28th 2014 and April 15th 2014. - Training in term of Harvest and Frond which was conducted on February 18th 2014 and May 18th 2014. - Training of manuring which was conducted on August 13th 2014.
Training at Talang Sukajadi Palm Oil Cooperative Unit and Jaya Bersama Palm Oil Cooperative Unit was conducted at the same date due to cooperative are under the guidance of Indrasakti Estate Scheme Smallholder. While Margo Mulyo Village Cooperative Unit and Talang Subur Village Cooperative Unit are under the guidance of Indra Lestari Estate Scheme Smallholder.
Status: Comply
PRINCIPLE #5 ENVIRONMENTAL RESPONSIBILITY AND CONSERVATION OF NATURAL RESOURCES AND BIODIVERSITY
5.1 Aspects of plantation and mill management, including replanting, that have environmental impacts are identified, and plans to negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continuous improvement. Cooperative unit has copy of Environment Impact Assessment in each cooperative unit. Document of EIA has been legalized in accordance with the approval of Ministry of Environment Head of Agribusiness Division Nomor 22/ANDAL/RKL- RPL/BA/VI/1998 June 8th 1998.
Caretaker of scheme smallholder is also compiling Plan of Social Impact Management that has been socialized to the nearby
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Caretaker of scheme smallholder has compiled Report of Environmental Management and Monitoring Plan Implementation for the 1st period of 2014 and has been informed to the related agency (Indragiri Huly Distrcit Environmental Agency) in accordance with handover Document on September 16th 2014.
Status: Comply 5.2 The status of rare, threatened or endangered species and high conservation value habitats, if any, that exist in the plantation or that could be affected by plantation or mill management, shall be identified and their conservation taken into account in management plans and operations. According to the interview result with smallholder in Blok F7 of Margo Mulyo Village Cooperative Unit, smallholder has aware of the existence of the protected flora and fauna such as: cobra, eagle, and kantong semar and socialization of the protected area nearby scheme smallholder.
Cooperative unit has had officer who is appointed as person in charge under the name of Arip (HCV Officer Talang Sukajadi Palm Oil Cooperative Unit), Ngateman (HCV Officer of Jaya Bersama Village Cooperative Unit), Achmed Sulistianto (HCV Officer Margo Mulyo Village Cooperative Unit), and Sugiarto (HCV Oficer of Talang Subur Village Cooperative Unit).
PT MNIS has had HCV identification study for the period of 2012 which was conducted by internal staff (Biodiversity and Conservation Section – SMART Company) 38 type of flora, 27 type of birds, 10 type of mammals and 4 type of reptiles were identified. According to protection status, 19 type of protected flora and fauna are: cekakak belukar, kengkareng hitam, kipasan belang, betet ekor panjang, etc.
According to field visit in Division 6 area of Indrasakti Scheme smallholder, there is signboard of HCV 6 area location mark about on traditional cemetery of Talang Mamak community. Marking on the outmost boundary of the spraying and manuring area has been conducted.
Furthermore, Cooperative Unit has conducted weekly animal monitoring which covers : Jaya Bersama Palm Oil Cooperative (Indrasakti Scheme Smallholder) 28 Cekakak belukar were found on September 2014 at Forest B04. Talang Sukajadi Palm Oil Cooperative 17 Cekakak belukar werefound on September 2014 at Forest (J54). Talang Subur Village Cooperative Unit 3 Monkeys and 1 Biawak were found at Pegadungan River (D11) on October 2014 while monkey, biawak, and cekakak were found at Pegadungan River (D11) during period of January to October. Margo Mulyo Village Cooperative Unit 1 Biawak was found at Ekok River (Blok H12) on October 2014, while hogs, biawak, snake, monkey, and cekakak were found at Ekok River (Blok H12) during period of January to October.
HCV socialization was conducted at Indrasakti Estate MESS on April 25th 2014 and was attended by 31 participants (Scheme Smallholder Coordinator, Head of Village Cooperative Unit, Supervising Agency, Board of Cooperative Unit). Attendance list, subject materials, official records and photographs are available.
Status: Comply 5.3 Waste is reduced, recycled, re-used and disposed of in an environmentally and socially responsible manner. Cooperative has agrochemical waste management plan which is attached on current of used pesticide and fertilizer container washing as shown below: 1. Gathering of washed container of pesticide and fertilizer at cap and used fertilizer container washing station. 2. Ex pesticide container is washed by shaking the ex pesticide container 3 times. Water used for washing of ex pesticide and fertilizer container is stored at tank and re-used for pest spraying. Water used for washing fertilizer container is stored at tank and re-used to spray palm oil plants. SPO – 4006a.6 Halaman 48 Prepared Mutuagung Lestari for Indrasakti Mill – PT Meganusa Intisawit,Ivo Mas Tunggal
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3. container of the washed ex-pesticide is re-used for spraying or returned to the pesticide supplier and container of the washed used-pesticide is re-used for estate operational.
Example of Hazardous waste implementation are: Covering letter of Hazardous waste from Estate Manager on October 16th 2014. The delivered Hazardous Waste are: 19 pieces of fuell filters, 8 pieces of oil filters, 3 Kg of contaminated rags, 2 pieces of N100 batteries, 1 piece of N 120 battery, 4 pieces of air cleaner, 6 pieces of 1300-24 tyres, 2 pieces of 18.4 – 30 tyres, 2 pieces of12.4 – 24 tyres, 2 pieces of 8,25 – 20 tyres, and 2 pieces of 750-17 tyres.
According to the interview result with PT MNIS environment staff, there is no complaint in term of waste disposal for scheme smallholders estate, it is supported by interview result with Mr Sulaiman (Margo Mulyo Palm Oil Cooperative) who states that domestic waste is transported twice in a week and delivered to Own Estate Landfills.
Status:Comply 5.4 Efficiency of energy use and use of renewable energy is maximized. Smallholder has conducted energy efficiensy, for example: Circular letter from the board of Talang Subur Village Cooperative Unit with letter number 20/KUD TS-SE/06/2013 on June 13th 2013 to entire Talang Subur Village Cooperative Units to use water and electricity only for the basic need (switch the electricity off during daylight), and diesel fuel usage based on basic need only.
According to field visit and interview, scheme smallholders use only human to maintain and harvest palm oil plant. Status: Not Applicable 5.5 Use of fire for waste disposal and for preparing land for replanting is avoided except in specific situations, as identified in the ASEAN guidelines or other regional best practice. According to document review, estate is not planning to conduct replanting program yet. Plant ages condition as the described below: Talang Sukajadi Palm Oil Cooperative Unit: the oldest first palm oil plant was planted on 2000. Replanting program is planned to be conducted on 2025. Jaya Bersama Palm Oil Cooperative Unit: the oldest first palm oil plant was planted on 2005. Replanting program is planned to be conducted on 2031. Margo Mulyo Village Cooperative Unit: the oldest first palm oil plant was planted on 2001. Replanting program is planned to be conducted on 2026. Talang Subur Village Cooperative Unit: the oldest first palm oil plant was planted on 1998, 1999, 2000 and 2001. Replanting program is planned to be conducted on 2025.
Smallholders organization (Village Cooperative Unit/Palm Oil Cooperative Unit) has compiled diagram of Land Fire Handling Procedure as shown below: First action to extinguish the fire to anyone who first watch the fire. Report it to the board of Village Cooperative Unit if the fire is hard to be extinguished. Emergency response team prepare fire extinguisher equipments and heading to fire spot immediately. Emergency response team must conduct investigation soon after the they extinguish the fire. The Board of Village Cooperative Unit report the land fire to the authorities (nearby village administration office, sectoral police, and Sub-District Military Base).
PT MNIS as partner of scheme smallholders is rountinely conduct land fire simulation which is purposed to prepare entire employees and smallholders handling land fire. Several land fire simulations were conducted, for example: Land fire simulation at Blok H43/44 on October 1st 2014 which was participated by land fire emergency response team of PT MNIS, Indragiri Hulu District Fire Brigade, and Representatives of company-guided Village Cooperation Unit. Land fire simulation at Indrasakti Estate area on August 31st 2013 which was participated by 82 participants of land fire emergency response team of PT MNIS and company-guided Village Cooperative Unit.
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According to document review and field visit to Talang Sukajadi Palm Oil Cooperative Unit, Jaya Bersama Palm Oil Cooperative Unit, Margo Mulyo Village Cooperative Unit, and Talang Subur Village Cooperative Unit, smallholders organization has had proper land fire emergency response facilities. Those facilities are: Fire club: 4 units. Sack: 2 units. Hooking spear: 2 units. Fire sweeper: 3 units. Cap: 1 unit. Axe: 2 units. Hoe: 1 unit. Bucket: 2 units. Spade: 2 units.
In term of policy to conduct replanting/land clearing using zero burning principle (zero burning), company has conducted socialization to smallholders who are the member of Village Cooperative Unit/Palm Oil Cooperative Unit. For example, socialization in term of replanting using zero burning principle at Informal Education Cottage of Indrasakti Estate on April 16th 2012 and was participated by 23 people of the board of Talang Sukajadi Palm Oil Cooperative Unit and Jaya Bersama Palm Oil Cooperative Unit along with Village Cooperative Unit and estate staff. Record of socialization in term of prohibition to burn land and garbage within estate and settlement area to the board and members of Margo Mulyo Village Cooperative Unit and Talang Subur Village Cooperative Unit at Indralestari Mess on February 20th 2014. Socialization was attended by 19 participants.
Status: Comply
5.6 Plans to reduce pollution and emissions, including greenhouse gases, are developed, implemented and monitored. PT MNIS has had list of identification of environmental and handling aspect on January 21st 2014.
Indralestari Scheme Smallholders and Indrasakti Scheme Smallholders. Source Potential of Impact Location Handling TM Treatment Conducting operation in accordance (Spraying weeds) with work procedure, ensure - Drop of Cycle and harvesting path equipments for spraying condition good herbicide from Soil Contamination and no leakage. spraying equipment Placed at provided bucket for the used - Use Pesticide Provided bucket for the pesticide package on warehouse, re- container used pesticide package washed and re-utilized. Manuring Placed at provided bucket for the used - Used fertilizer Cycle pesticide package on warehouse, re- sack washed and re-utilized. - Used fertilizer Soil Contamination plastic Cycle FFB Transport Truck - Fuel usage for Gasoline/Diesel Fuel FFB Harvest Economization of oil fuel usage in routine Usage accordance with operational need. transportation - Dust spread of Speed limitation for FFB transport truck FFB transport FFB Harvest which passing through community truck Air Pollution settlement.
Status:Comply
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PRINCIPLE #6 RESPONSIBLE CONSIDERATION OF EMPLOYEES AND OF INDIVIDUALS AND COMMUNITIES AFFECTED BY GROWERS AND MILLS
6.1 Aspects of plantation and mill management, including replanting, that have social impacts are identified in a participatory way, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate the continuous improvement. PT MNIS has had document of social and environmental impact assessment consisted of: a. Document of EIA under the name of PT MNIS which was approved by Agrobusiness Agency, Agriculture Department in accordance with Letter Number 22/Andal/RKL-RPL/BA/VI/1998 on June 8th 1998 which covers own estate for 6,000 Ha and scheme smallholders estate for 14,000 Ha. The projected POM capacity according to EIA is consisted of POM I with capacity 60 Ton FFB/Hour and POM II with capacity 60 Ton FFB/Hour. The monitored social impacts are: - Management of social restlessness due to change on Land for Business, LB/LU I and LB/LU II. - Management of social restlessness due to land dispute. - Management of social restlessness due to costum forest fire in nucleus area plan. - Management of social restlessness due to consumable-plants business continuation. - Management of social restlessness due to negative impact for communities health. - Management of social restlessness due to oil drilling of Ekspand Company. - Job Opportunity. - Increase of income. - Cooperation Unit existance. From 6.000 Ha of the projected nucleus estate, nucleus estate only realized for 875.158 Ha according to EIA review.
b. Document of Environmental Management and Monitoring Effort for Buana Wira Lestari Palm Oil Mill which has been approved by Indragiri Hulu District Regional Environment Impact Control Agency in accordance with Letter Number 794/Bapedalda-Inhu/IX/2003 on September 30th 2003 in term of Approvement for Environmental Management and Monitoring Effort of Buana Wira Lestari Mas Company POM. POM capacity according to EIA is 60 Ton FFB/Hour. Social impact caused by POM operation which has been identified on Environmental Management and Monitoring Effort are: - Labour empowerment (absorption of local manpower, social envy, unemployement level, income level). - FFB purchasing and transporting (FFB market assurance, business opportunity is created). - POM operational (nearby community restlessness, enterpreneurship raised, social envy). - Transporting CPO output (community’s pocitive and negative perseption).
c. Report of Identification Review of Social Impact due to coverage of POM, Own Estate and Scheme Smallholders Estate was compiled by SMARTRI Tbk Company, Environment and Sustainability Division on November 2012.
Management and monitoring of the impact to scheme of smallholders is described on document of Environmental Management and Monitoring Plan which was reported to Indragiri Hulu District Environmental Agency. Management of PT MNIS has also conducted routine meeting and coordination with the board of cooperative unit monthly. The meeting was attended by Own Estate Manager, Scheme Smallholders Estate Managers, Scheme Smallholdes Estate Assistant, and representatives of smallholders group. Issues in term of operational work plan for later month is disscued on that meeting.
Status:Comply 6.2 There are open and transparent methods for communication and consultation between growers and/or millers, local communities and other affected or interested parties. Scheme smallholders estate managing cooperative unit has had procedure to communicate with their members and also nearby society. Evidence of record in each cooperation unit is available.
Talang Sukajadi Village cooperative Unit Record of communication between the Board of Cooperative Unit with the nearby Community, for example, Meeting Official SPO – 4006a.6 Halaman 51 Prepared Mutuagung Lestari for Indrasakti Mill – PT Meganusa Intisawit,Ivo Mas Tunggal
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Record in term of Republic of Indonesia Independence Celebration on 2014, which was held on August 5th 2014 and was attended by the board of cooperative unit, Chief of Talang Maju Village, Head of Neighbourhood Ascosiation, Youth Organization Leader, Village Representative Agency and Community Figures.
Jaya Bersama Village cooperative Unit Record of communication between the Board of Cooperative Unit with the nearby Community, for example, Event of Committee Selection for Islamic New Year of 1435 Hijr at Beligan Village on October 1st 2014, which was attended by the board of cooperative, Chief of Beligan Village, Community Figures, Religious Figures, Head of Neighbourhood Ascosiation, Chief of Hamlet, Village Representative Agency and NGO.
Talang Subur Village cooperative Unit Official Record and Attendance List of the Meeting between the Board of Cooperative Unit with Talang Mulya Village Administration Government, Batang Cenaku Sub-District, in term of Talang Mulya Village Anniversary Celebration on April 21st 2014.
KUD Margomulyo Village cooperative Unit Official Record and Attendance List of the Meeting between the Board of Cooperative Unit with Kerubung Jaya Village Administration Government, Batang Cenaku Sub-District, in term of Village Road Repairment on January 20th 2014.
Managing cooperative unit of scheme smallholders estate has also had record of meeting with the cooperative unit members, for example: Talang Sukajadi Village cooperative Unit Annual Members Meeting of Talang Sukajadi Cooperative Unit on April 1st 2014. Official Record of Operational Work Plan Meeting which was attended by the Board of Talang Sukajadi Palm Oil Cooperative Unit and the members on September 2014.
Jaya Bersama Village cooperative Unit Official Record of Operational Work Plan Meeting on 2nd Semester of 2014 which was attended by the Board of Jaya Bersama Palm Oil Cooperative Unit, Protector Agency, Division Assistant of Smallholders Group and Division III Benuang Smallholders Member.
Talang Subur Village cooperative Unit Official Record and Attendance List of Operational Work Plan Meeting which was attended by the Board of Talang Subur Palm Oil Cooperative Unit, Protector Agency, and Scheme Smallholders.
Margomulyo Village cooperative Unit Minutes of Meeting of Member Annual Meeting (MAM/RAT) of Margomulyo Village Cooperative Unit of Talang Bersemi Village, Batang Cenaku Sub-District, Indragiri Hulu District, Operational Work Year of 2013 (conducted on June 19th 2014). Attendance List of Meeting Participants on June 19th 2014 (93 participants of the meeting).
Status: Comply 6.3 There is a mutually agreed and documented system for dealing with complaints and grievances, which is implemented and accepted by all parties. Each cooperative unit has Procedure of Conflict and Complaint Handling which describes procedure of complaint delivery, complaint management and complaint record. Complaint can be delivered orally through Smallholders Group or by written letter through complaint bin provided in front of cooperation unit office.
According to complaint bin monitoring in each Village Cooperative Unit/Palm Oil Cooperation Unit for period of January – September 2014, there is no complaint delivered to parties in each cooperation unit. According to the board of cooperative unit.
Status: Comply
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6.4 Any negotiations concerning compensation for loss of legal or customary rights are dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions. Right for the land for the community was given by government without negotiation in term of compensation for the legal right that was leased. Process of the land right are described below: a. Ex-Transmigration Area program from government with composition of 20% from the native village and 80% from Java who join the program of palm oil plantation establishment with Cooperative Credite Scheme. All participants of transmigration program used to have Land Ownership Right in form of Land Ownership Certificate (SHM), however, according to restructuring of estate blok in the beginning of Smallholders Cooperative Credite Scheme, hence all the certificates were recalled by Indragiri Hulu District National Land Agency. Several certificates has not yet issued by National Land Agency. b. Area of Local Village land of the community join the program of Palm Oil Establishment using Cooperative Credite Scheme and land ownership certificate (SHM) issuance also not issued by National Land Agency Yet.
Status: Comply 6.5 Pay and conditions for employees and for employees of contractors always meet at least legal or industry minimum standards and are sufficient to provide decent living wages. Cooperative unit party shows cooperative labour agreement with the employees which are: a. Jaya Bersama Palm Oil Cooperative Unit - Cooperative Labour Agreement for Specific Work Hour (No 05/Kopsa-JB/PKWT/14 between M Bawi (the board of Jaya Bersama Palm Oil Cooperative Unit) with Septi (Workers) in term of collective labour agreement as spraying workers with salary of IDR 80,000 per day on January 3rd 2014 with valid period for 2 years. b. Talang Sukajadi Palm Oil Cooperative Unit - Cooperative Labour Agreement for Specific Work Hour (No 02/Kopsa-TSJ/PKWT/14 between Ridho (the board of Talang Sukajadi Palm Oil Cooperative Unit) with Lusi Wahyuni (workers) in term of collective labour agreement as administration Production with salary IDR 2,2 /Kg FFB which was signed on October 10th 2014 with valid period for 2 years. c. Margo Mulyo Village Cooperative Unit - Collective Labour Agreement between Sahlan (Head of Margo Mulyo Village Cooperative Unit) with Aziz Nurul Maradona (field coordinator) on January 2nd with valid period from January 1st 2014 to December 31st 2014. According to collective labour agreement, salary calculation is made based on Member Annual Meeting (MAM/RAT). According to document review and interview with Aziz Nurul Maradona, his salary is IDR 2,000,000.00 per month. d. Talang Subur Village Cooperative Unit - Cooperative Labour Agreement for Specific Work Hour (No 01/KTS/PKWT/I/2014) Sahlan (Head of Margo Mulyo Village Cooperative Unit) with Sugiarto (field coordinator) on January 2nd 2014 with valid period from January 1st 2014 to December 31st 2014. According to document review and interview with, his salary is IDR 2,050,000.00 per month.
Cooperative unit party is able to show evidence of employees salary payment, for example: a. Talang Sukajadi Palm Oil Cooperative Unit Salary Name Job Position (IDR) Subandrio Field Coordinator 2,327,262 Lusi Administration at Field 1,828,563 Suci Administration of Saving and Loans Business 1,828,563 b. Jaya Bersama Palm Oil Cooperative Unit Name Job Position Salary (IDR) M. Bawi Head of Village Cooperative Unit 2,001,102 Ateng J Field Coordinator 2,000,000 Niyah Spraying Operator 720,000 (8 days of work)
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ASSESSMENT REPORT c. Margo Mulyo Village Unit Cooperative Name Job Position Salary (IDR) Aziz Nurul M Field Coordinator 2,000,000 Beja Supriyanto Book Expert 1,950,000 d. Talang Subur Village Unit Cooperative Name Job Position Salary (IDR) Sugiarto Field Coordinator 2,050,000 Ahmad Employees of Saving and Loans 1,850,000 Cooperation Unit
Status:Comply 6.6 The employer respects the right of all personnel to form and join trade unions of their choice and to bargain collectively. Where the right to freedom of association and collective bargaining are restricted under law, the employer facilitates parallel means of independent and free association and bargaining for all such personnel. Basically, cooperative unit is never restrict workers and contractor to be member of worker union, this is described by policy in each cooperative unit, for example:
Talang Sukajadi Village Cooperative Unit Circular Number: 06/KOPSA-KT/III/2012, March 8th 2012 in term of Freedom to Unite and Expressing Opinion.
Jaya Bersama Village Cooperative Unit Circular Number: 02/SE-JB/III/2012, March 8th 2012 in term of Freedom to Unite and Expressing Opinion.
Talang Subur Village Cooperative Unit Circular Number: 9/KUD TS-SE/III/2012, March 8th 2012 in term of Freedom to Unite and Expressing Opinion.
Margo Mulyo Village Cooperative Unit Circular Number: 4/KMM-SE/SPO/III/2012, March 6th 2012 in term of Freedom to Unite and Expressing Opinion.
Status:Comply
6.7 Children are not employed or exploited. Work by children is acceptable on family farms, under adult supervision, and when not interfering with education program. Children are not exposed to hazardous working conditions. Each managing cooperative unit of scheme smallholder has had policy to not to employ underage workers (>18 years old).
Talang Sukajadi Village Cooperative Unit Circular Number: 05/KOPSA-KT/III/2012, March 8th 2012 in term of Minimum Age for Working is 18 years old, in accordance with UU No. 13 tahun 2003. According to Recapitulation of Information of Village Cooperative Unit employees, there is no underage workers (18< years old).
KUD Jaya Bersama Village Cooperative Unit Circular Number: 9/SE-JB/III/2012, March 8th 2012 in term of Minimum Age for Working is 18 years old, in accordance with UU No. 13 tahun 2003. According to Recapitulation of Information of Village Cooperative Unit employees, there is no underage workers (18< years old).
Talang Subur Village Cooperative Unit Circular Number: 2/KUD TS/SE/III/2012, March 8th 2012 in term of Minimum Age for Working is 18 years old, in accordance with UU No. 13 tahun 2003. According to Recapitulation of Information of Village Cooperative Unit employees, there is no underage workers (18< years old).
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Margomulyo Village Cooperative Unit Circular Number: 4/KMM-SE/SPO/III/2012, March 6th 2012 in term of Minimum Age for Working is 18 years old, in accordance with UU No. 13 tahun 2003. According to Recapitulation of Information of Village Cooperative Unit employees, there is no underage workers (18< years old).
Status: Comply 6.8 Any form of discrimination based on race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliation, or age, is prohibited. Each managing cooperative unit of scheme smallholders estate has implemented no discrimination policy and has given same opportunity to work as scheme smallholdets estate workers.
Talang Sukajadi Village Cooperative Unit Circular Number: 10/KOPSA-KT/III/2012, March 8th 2012 in term of Equal Treatment on Work. According to observation and interview with Head of Cooperative Unit, 3 cooperative unit staff who work as administration staff are consisted of different background.
Jaya Bersama Village Cooperative Unit Circular Number: 3/SE-JB/III/2012, March 8th 2012 in term of Equal Treatment on Work
Talang Subur Village Cooperative Unit Circular Number: 8/KUD TS-SE/III/2012, March 8th 2012 in term of Equal Treatment on Work. According to observation and interview with Head of Cooperative Unit, 4 cooperative unit staffs who work as administration staff are consisted of different background.
MargomulyoVillage Cooperative Unit Circular Number: 2/KMM-SE/SPO/III/2012, March 3rd 2012 tanggal in term of Equal Treatment on Work. According to observation and interview with Head of Cooperative Unit, 4 cooperative unit staffs who work as administration staff are consisted of different background.
Status:Comply 6.9 Policy to prevent sexual harassment and all other forms of violence against women and to protect their reproductive rights is developed and applied. Cooperative unit has had policy to prevent sexual harrashment and to protect reproduction right, those policies are: Jaya Bersama Palm Oil Cooperative Unit.Official record of socialization for preventing sexual harrashment at workplace was conducted at Informal Education Cottage on October 9th 2014 is available. Subject of socialization was taught by Company Doctor and Coordinator of SPO PSM 5 and was attended by 11 female workers. Socialization materials is in term of how to prevent sexual harrashment at area of PT MNIS and Village Cooperative Unit of Indrasakti Scheme Smallholders can be used as references of the board of Village Cooperative Unit. Talang Sukajadi Palm Oil Cooperative Unit. Official record of socialization for preventing sexual harrashment at workplace was conducted at Informal Education Cottage on October 9th 2014 is available. Subject of socialization was taught by Company Doctor and Coordinator of SPO PSM 5 and was attended by 11 female workers. Socialization materials is in term of how to prevent sexual harrashment at area of PT MNIS and Village Cooperative Unit of Indrasakti Scheme Smallholders can be used as references of the board of Village Cooperative Unit. Evidence in form of photographs is available. Margo Mulyo Village Cooperative Unit.Circular number 8/KMM-SE/SPO/III/2012 on March 7th 2012 in term of policy to prevent any kind of sexuall harrashment in order to protect women reproduction right. cooperative unit prohibit any kind of sexual harrashment for women and protect women reproduction right. Talang Subur Village Cooperative Unit.Circulaar number 14/KUD TS-SE/III/2012 on March 8th 2012 in term of policy to prevent any kind of sexuall harrashment in order to protect women reproduction right. cooperative unit prohibit any kind of sexual harrashment for women and protect women reproduction right. Status:Comply SPO – 4006a.6 Halaman 55 Prepared Mutuagung Lestari for Indrasakti Mill – PT Meganusa Intisawit,Ivo Mas Tunggal
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6.10 Growers and mills deal fairly and transparently with smallholders and other local businesses. According to consultation result with cooperative unit, there is no complaint from scheme smallholders and other business partners.
Meeting of FFB pricing is conducted twice in a month, the meeting is conducted at Office of Riau Province Plantation Agency and is attended by company representative, smallholders, and province government, for example: Official Record of the Result of Riau Province FFB Pricing Team for Price for each Estate No. 40/TPH TBS-X/2014 on October 14th 2014 price for period of Wednesday – Tueasday October 15th 2014 to October 21st 2014.
Evidence of payment for Smallholders FFB in form of recapitulation note of FFB has been well documented. Data of bruto income (FFB tonnage multipled by the valid FFB price at that time), credite discount (for ongoing debt) and other discount such as replanting, fertilizer, pesticide, and road maintenance and other.
According to document review, auditor concluded that Village Cooperative Unit/Palm Oil Cooperative Unit has documented copy of partnership between Cooperation Unit and local business. For example: Talang Sukajadi Palm Oil Cooperative Unit: record of Collective Labour Agreement (CLA/SPK) of FFB transport on CLA/SPK document No.01/KKTSPK/I/2014 on January 7th 2014 under the name of Ridho (representing Village Cooperative Unit) and Agusnedi (representing FFB transport contractor) is available. Payment is conducted on date 20th each month in accordance with the agreed price. Jaya Bersama Palm Oil Cooperative Unit: record of Collective Labour Agreement (CLA/SPK) of FFB transport on CLA/SPK document No.01/KKTSPK/I/2014 on January 2nd 2014 under the name of M. Bawi (representing Village Cooperative Unit) and Sardoyo (representing FFB transport contractor) is available.Payment is conducted on date 20th each month in accordance with the agreed price. Margo Mulyo Village Cooperative Unit: record of Collective Labour Agreement (CLA/SPK) of FFB transport on CLA/SPK document No.01/KMMSPK/I/2014 on January 3rd 2014 under the name of Yasril (representing Village Cooperative Unit) and Sutrisno (representing FFB transport contractor) is available. Payment is conducted on date 20th each month in accordance with the agreed price. Talang Subur Village Cooperative Unit: record of Collective Labour Agreement (CLA/SPK) of FFB transport on CLA/SPK document No.01/KTS/SPK/I/2014 on January 3rd 2014 under the name of Yasril (representing Village Cooperative Unit) and Sutrisno (representing FFB transport contractor) is available. Payment is conducted on date 20th each month in accordance with the agreed price.
According to the interview with the board of cooperative unit, smallholders group and smallholders, there is no credit installment left.
Village Cooperative Unit/Palm Oil Cooperative Unit needs operational cost for maintaining road and transporting FFB to conduct their business. That expense is derived from cooperation unit members income in form of monthly payment.Number of monthly payment is determined in forum of Cooperative Unit Member Annual Meeting (CUMAM/RAT) in the end of the year. The cost for expenses for example: 1. Cost of road maintenance. Using credit system from the PT MNIS in scheme of borrowing heavy equipments. Will be monthly cut from FFB payment note. 2. Cost of transportation. Paid by cooperative unit member in accordance with overall FFB transport cost according to cooperative unit members agreement on monthly meeting or annual meeting.
Cooperative unit has long term plan (10 years) and according to long term document, no replanting program that will be conducted untill 2023. Status:Comply
6.11 Growers and millers contribute to local sustainable development wherever appropriate. Smallholders Cooperative Unit Contributions to Local Development are shown below: Talang Sukajadi Village Cooperative Unit Village retribution for IDR 2,- /Kg of FFB.
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Donation to Talang Suka Maju Village 5th anniversary on 2014. Donation to the Celebration of Republic of Indonesia Anniversary to Rakit Kulim Sub-District.
Jaya Bersama Village Cooperative Unit Village retribution for IDR 2,- /Kg of FFB. List of Smallholders Monthly Income on 2014. Donation to the Celebration of Republic of Indonesia Anniversary to Seberida Sub-District.
Talang Subur Village Cooperative Unit Village retribution for IDR 2,- /Kg of FFB. Recapitulation of Community Social Responsibility of Talang Subur Village Cooperative Unit untill October 2014 covers aspects of Education, Sport, Religion, and Social. Evidence of honorarium payment for Kindergarten Teacher.
Margomulyo Village Cooperative Unit Village retribution for IDR 2,- /Kg of FFB. Recapitulation of Community Social Responsibility of Talang Subur Village Cooperative Unit untill October 2014 covers aspects of Education, Sport, Religion, and Social. Evidence of honorarium payment for Kindergarten Teacher in for on social subsidy.
Status:Comply
PRINCIPLE #7 RESPONSIBLE DEVELOPMENT OF NEW PLANTINGS
7.1 A comprehensive and participatory independent social and environmental assessment is undertaken prior to establishing new plantings or operations, or expanding existing ones, and the results incorporated into planning, management and operations. The company did not carry out any new development after November 2007.
Status:Not Applicable 7.2 Soil surveys and topographic information are used for site planning in the establishment of new plantings, and the results are incorporated into plans and operations. The company did not carry out any new development after November 2007.
Status:Not Applicable 7.3 New plantings since November 2005, have not replaced primary forest or any area required to maintain or enhance one or more High Conservation Values. The company did not carry out any new development after November 2007.
Status:Not Applicable 7.4 Extensive planting on steep terrain, and/or on marginal and fragile soils, is avoided. The company did not carry out any new development after November 2007.
Status:Not Applicable 7.5 No new plantings are established on local peoples’ land without their free, prior and informed consent, dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions.
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The company did not carry out any new development after November 2007.
Status:Not Applicable 7.6 Local people are compensated for any agreed land acquisitions and relinquishment of rights, subject to their free, prior and informed consent and negotiated agreements. The company did not carry out any new development after November 2007.
Status:Not Applicable 7.7 Use of fire in the preparation of new plantings is avoided other than in specific situations, as identified in the ASEAN guidelines or other regional best practice. The company did not carry out any new development after November 2007.
Status:Not Applicable PRINCIPLE #8 COMMITMENT TO CONTINUOUS IMPROVEMENT IN KEY AREAS OF ACTIVITY
8.1 Growers and millers regularly monitor and review their activities and develop and implement action plans that allow demonstrable continuous improvement in key operations. Sustainable Improvement is available. The programs for sustainable improvement are: Gupon Ferrocement Night Patrol Post Fiber Hooking Spear Egrek Glove Lot Number
This innovation has been conducted since 2012 and continued until S-1. Status:Comply
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3.2. Summary of Assessment Report of Supply Chain
Clause (Module D) CPO Mills - Segregation Requirements
1 Documented Procedures 1.1 The facility shall have written procedures and/or work instructions to ensure the implementation of all the elements specified in these requirements. This shall include at minimum the following: a) Complete and up to date procedures covering the implementation of all the elements in these requirements. b) The name of the person having overall responsibility for and authority over the implementation of these requirements and compliance with all applicable requirements. This person shall be able to demonstrate awareness of the facilities procedures for the implementation of this standard. a. Indrasakti Mill now has implemented supply chain Segregation model and procedure in term of SG Model has been implemented in accordance with SOP of Supply Chain RSPO Product of Segregation Model (No. Dok: PT MNIS- INKM/SOP-SCCS/03, on April 1st 2014). Entire requirement elements of Segregationhas been described on the procedure, including element of receiving Raw Material from RSPO-Certified supplier. b. Person in Charge in Indrasakti Mill on the implementation of supply chain Segregation (SG)model is Production Controller (PC) Regionof Indragiri and Mill Unit Head. To ensure that SG implementation works according to procedure, Indrasakti Mill has also defined Critical Control Point, for example: Security, Weighing Kerani, Grading Foreman, Dispatch and Kernel Storage Bin Operator, Laboratory Analyst, Production Kerani, Mills Assistant, and Head of Administration.
Based on interviewed with Mill Unit Head, Administration Staff and the other related staff at mill, was knew if the procedure related of SCCS already implemented. The person in charge has been understood the process of supply chain system. The management of Indrasakti Mill was define of Critical Control Point to included of Mill Security, Weighing Administrator, Grading Foreman, Dispatch Operator and Kernel Storage Bin, Laboratory Analyst, Production Administrator, Mill Assistant and Head of Administration. Status: Comply 1.2 The facility shall have documented procedures for receiving and processing certified and non-certified FFBs. Indrasakti Mill has implemented supply chain Segregation model and procedure in term of SG Model implemented in accordance with SOP of Supply Chain RSPO Product of Segregation Model (No. Dok: PT MNIS-INKM/SOP-SCCS/03, on April 1st 2014). Entire requirement elements of Segregation has been described on the procedure, including element of receiving Raw Material from RSPO-Certified supplier. 6.1. Receiving of Raw Material 6.1.1. Receiving of FFB FFB supplier the mills received is classified to 2 categories. Certified FFB supplier is considered as sustainable raw material in order to be identified to distinguish the certified-supplier with the non-certified supplier, therefore, all the received FFB has been RSPO-Certified. - Own Estates: the received FFB from supplier is traced back according to the signed Cooperative Agreement Letter by own estate staff. FFB Transport Covering Letter contains informations such as: source of estate/division/blok, destination, distance from division to Mill, Vehicle Police Number, Type of Vehicle, number of FFB, weight of FFB, Date/Time of the received FFB and FFB Transport Covering Letter number. On FFB Transport Covering Letter, there are 4 (four) estate code number which has been registered on mills computerized system as FFB supplier. - Scheme smallholders: the received FFB from supplier is traced back according to the signed Cooperative Agreement Letter by nucleus estate staff. FFB Transport Covering Letter contains informations such as: Name of Smallholders group/Village Cooperative Unit, destination, distance from division to Mill, vehicle police number, type of vehicle, number of FFB, weight of FFB, blok, date/time of the received FFB and Cooperative Agreement Letter number. On FFB Transport Covering Letter, there are 4 (four) estate code number
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which has been registered on mills computerized system as FFB supplier. 6.4. Processing To implement the term of RSPO supply chain Segregasi Model, whether mill and KCP must ensure that 95% of the processed products is physically segregation materials and allows only 5% contamination. Improvement of supply chain model quality from Mass Balance to Segregatedis possible in condition that the improvement is not conducted on the available physical stock at that time. Stage of the improvement of supply chainmodel are: 1. Ensuring that there is no FFB stock left on the previous supply chainmodel and storage tank is empty. 2. Washing CPO/PKO tank, Cleaning Kernel Storage Bin (cleaning) and transport tank. 3. Storage tank, KSB is ready to used for storing processed product with the improvement of supply chain model. 4. Determining and receiving raw material from the segregated source as well. 5. Storage tank and transport truck are labelized SG Certified to distinguish with other products. The truck then registered to WeighBridge program. According to Internal Letter of Indragiri RC Number: 001/RC-Indragiri/04/2014, on March 28th 2014 and Appointment of Indrasakti Mill Manager on April 1st 2014. In term of: FFB delivery, supply source for Indrasakti Mill on the implementation of Segregationmodel and statement of Segregation model implementation.
No Supplier Name Code Status Type of Number of Certificate Valid until Certificate 1 Indrasakti Estate 2320 Certified RSPO MUTU-RSPO/033 Dec 3rd 2018 2 Anggrek Village Unit INDA Certified RSPO MUTU-RSPO/033 Dec 3rd 2018 Cooperative ISCC EU-ISCC-Cert-DE104- Jan 13th 2015 07781404 3 Setia Kawan Palm Oil INDA Certified RSPO MUTU-RSPO/033 Dec 3rd 2018 Cooperative Unit ISCC EU-ISCC-Cert-DE104- Jan 13th 2015 07781404 4 Rahayu Makmur Village Unit INDA Certified RSPO MUTU-RSPO/033 Dec 3rd 2018 Cooperative ISCC EU-ISCC-Cert-DE104- Jan 13th 2015 07781404 5 Milik Bersama Village Unit INDA Certified RSPO MUTU-RSPO/033 Dec 3rd 2018 Cooperative ISCC EU-ISCC-Cert-DE104- Jan 13th 2015 07781404 6 Karya Bersama Village Unit INDA Certified RSPO MUTU-RSPO/033 Dec 3rd 2018 Cooperative ISCC EU-ISCC-Cert-DE104- Jan 13th 2015 07781404 7 Tunas Harapan Village Unit INDA Certified RSPO MUTU-RSPO/033 Dec 3rd 2018 Cooperative ISCC EU-ISCC-Cert-DE104- Jan 13th 2015 07781404 8 Harapan Maju Village Unit INDA Certified RSPO MUTU-RSPO/033 Dec 3rd 2018 Cooperative ISCC EU-ISCC-Cert-DE104- Jan 13th 2015 07781404 9 Talang Subur Village Unit IDLA Certified RSPO MUTU-RSPO/033 Dec 3rd 2018 Cooperative ISCC EU-ISCC-Cert-DE104- Jan 13th 2015 07781405 10 Margo Mulyo Village Unit IDLA Certified RSPO MUTU-RSPO/033 Dec 3rd 2018 Cooperative ISCC EU-ISCC-Cert-DE104- Jan 13th 2015 07781405 11 Usaha Manunggal Village IDSA Certified RSPO MUTU-RSPO/033 Dec 3rd 2018 Unit Cooperative ISCC EU-ISCC-Cert-DE104- Jan 13th 2015 07781406 12 Sejahtera Village Unit IDSA Certified RSPO MUTU-RSPO/033 Dec 3rd 2018 Cooperative ISCC EU-ISCC-Cert-DE104- Jan 13th 2015 07781406 13 Hidup Baru Village Unit IDSA Certified RSPO MUTU-RSPO/033 Dec 3rd 2018 Cooperative EU-ISCC-Cert-DE104- SPO – 4006a.6 Halaman 60 Prepared Mutuagung Lestari for Indrasakti Mill – PT Meganusa Intisawit,Ivo Mas Tunggal
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ISCC 07781406 Jan 13th 2015 14 Sumber Rezeki Village Unit IDSA Certified RSPO MUTU-RSPO/033 Dec 3rd 2018 Cooperative ISCC EU-ISCC-Cert-DE104- Jan 13th 2015 07781406 15 Manunggal Village Unit IDSA Certified RSPO MUTU-RSPO/033 Dec 3rd 2018 Cooperative ISCC EU-ISCC-Cert-DE104- Jan 13th 2015 07781406 16 Talang Sukajadi Village Unit IDSA Certified RSPO MUTU-RSPO/033 Dec 3rd 2018 Cooperative ISCC EU-ISCC-Cert-DE104- Jan 13th 2015 07781406 17 Jaya Bersama Village Unit IDSA Certified RSPO MUTU-RSPO/033 Dec 3rd 2018 Cooperative ISCC EU-ISCC-Cert-DE104- Jan 13th 2015 07781406
Status: Comply 2 Purchasing and goods in 2.1 The facility shall verify and document the volumes of certified and non-certified FFBs received. Indrasakti Mill has implemented supply chain Segregation model and procedure in term of SG Model has been implemented in accordance with SOP of Supply Chain RSPO Product of Segregation Model (No. Dok: PT MNIS-INKM/SOP-SCCS/03, April 1st 2014). All element of requirements of Segregationhas been described on that procedure, inclduing element of Raw Materialreceipt from the RSPO-Certified source. 6.2. Receiving of Raw Material 6.1.2. Receiving of FFB FFB supplier the mills received is classified to 2 categories. Certified FFB supplier is considered as sustainable raw materialin order to be identified to distinguish the certified-supplier with the non-certified supplier, therefore, all the received FFB has been RSPO-Certified. - Own Estates: the received FFB from supplier is traced back according to the signed Cooperative Agreement Letter by own estate staff. FFB Transport Covering Letter contains informations such as: source of estate/division/blok, destination, distance from division to Mill, Vehicle Police Number, Type of Vehicle, number of FFB, weight of FFB, Date/Time of the received FFB and FFB Transport Covering Letter number. On FFB Transport Covering Letter, there are 4 (four) estate code number which has been registered on mills computerized system as FFB supplier. - Scheme smallholders: the received FFB from supplier is traced back according to the signed Cooperative Agreement Letter by own estate staff. FFB Transport Covering Letter contains informations such as: Name of Smallholders group/Village Cooperative Unit, destination, distance from division to Mill, vehicle police number, type of vehicle, number of FFB, weight of FFB, blok, date/time of the received FFB and Cooperative Agreement Letter number.On FFB Transport Covering Letter, there are 4 (four) estate code number which has been registered on mills computerized system as FFB supplier.
Sample of raw materials receipt: Sample of FFB certified received FFB Transport Covering Letter (SPB) No: Supplier Code/Type of Product/Division/Year/Month/Serial Number of FFB Transport Covering Letter. SPB No: IDSE/TBS/01/14/10/002072; Estate: Indrasakti Estate (IDSE); Division 01: Nucleus; Vehicle Police Number: BM 8412 TN; date: October 21st 2014; Blok: G35 & G36; FFB Quantity: 462 FFB; taksasi: 8,310 kg. Weighing Ticket Number: A039793 039863; FFB: 1st weight: 17,380 kg; 2nd weight: 9,530 kg; NET Weight (Total Cert. Prod.): 7,850 kg; From: Indrasakti Estate Division.01; Quantity: 462 FFB (8,310 Kg); Delivery Note: IDSE/2320/TBS/01/14/10/2072; Transporter: 300565 – Indrasakti; Driver: Monang; Clerk: Rita Febriani.
FFB Transport Covering Letter (SPB) No Supplier Code/Type of Product/Division/Year/Month/Serial Number of FFB
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Transport Covering Letter. FFB Transport Covering Letter Number: IDSA/TBS/03/14/ / ; Estate: Indrasakti Scheme Smallholders Estate (IDSA); Division Hidup Baru: Scheme Smallholder; Vehicle Police Number: BM 9317 BE; date: October 21st 2014; Blok: L24; FFB Quantity: 600 FFB; taksasi: 9,100 kg. Tiket Timbang No: A039758 039832; TBS: 1st weight: 13.800 kg; 2nd weight: 4.010 kg; NET Weight (Total Cert. Prod.): 9.790 kg; From: Kebun: Indrasakti Scheme SmallholderEstate Div.03; Quantity: 600 JJG (9.100 kg); Delivery Note: IDSA/2320/TBS/03/14/10/1889; Transporter: 713281 – Hidup Baru : Driver: Rijal; Clerk: Rita Erikson.
Supplier code is in accordance with table of clause 1.2. Status: Comply 2.2 The facility shall inform the CB immediately if there is a projected overproduction. SOP of Supply Chain RSPO Product of Segregation Model (No. Doc: PT MNIS-INKM/SOP-SCCS/03, on April 1st2014). The procedure describes that if overproduction of the non-projected certified-product occured, hence, the stage to overcome this case has to be conducted as below: 1. Informing to related Institution of RSPO Certification and RSPO IT System / e-Trace. Communication of that case will be supported byCertification Section, EHS Dept. (Support Depart.) after they got information from Mill Unit Head and Sales Department. 2. Re-Analyzing production data and the written quarter-based report. 3. Calibrating and re-checking weighing equipment and weighing supporting equipment. 4. Determining projection of the new certified productby considering onversion ratio rate which has been legalized by RSPO in accordance with the applied supply chainmodel. Indrasakti Mill has conducted operational simulation for supply chain Segregasi (SG)model since April 1st 2014 based on guidance of Internal Letter of Indragiri RC Number: 001/RC-Indragiri/04/2014, 28 March 28th 2014 and the appointment of Indrasakti Mill Manager on April 1st 2014. According to data of production (Production Data For INKM – 2014 from April to Oktober/During the audit)the produced CPO is 42,571,202 Kg (42,571 Ton) and Kernel is 10,835,354 Kg (10,835 Ton) has not exceed total projection for 2014 which is 75,743 Ton for PO and 18,936 Ton for Kernel. Status: Comply 3 Record keeping 3.1 The facility shall maintain accurate, complete, up-to-date and accessible records and reports covering all aspects of these requirements. Indrasakti Mill has implementedsupply chainSegregationModel and procedure in term of SG Model has been implemented in accordance with SOP ofSupply Chain RSPO Product ofSegregation Model (No. Doc: PT MNIS-INKM/SOP-SCCS/03, on April 1st 2014). All requirement elements of Segregation has been described on the that procedure, including element of Raw Material receipt from the RSPO-Certified supply source. Segregation Actual Production of INKM Year 2014
Dispatch Processed FFB Produced CPO Produced Kernel Month CPO Kernel
Month To date Month To date Month To date Month To date Month To date
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April 29,610,180 29,610,180 6,288,931 6,288,931 1,610,350 1,610,350 6,488,790 6,488,790 1,984,990 1,984,990 May 31,338,680 60,948,860 6,458,330 12,747,261 1,671,894 3,282,244 6,160,630 12,609,420 1,461,740 3,446,730 June 32,823,890 93,772,750 6,714,988 19,462,249 1,689,723 4,971,967 6,691,620 19,301,040 1,488,770 4,935,500 July 33,107,930 126,880,680 6,544,774 26,007,023 1,713,758 6,685,725 6,563,650 25,864,690 1,469,610 6,405,110 August 42,240,480 169,121,160 8,624,731 34,631,754 2,172,922 8,858,647 7,690,780 33,555,470 760,750 7,165,860 September 38,319,560 207,440,720 7,939,448 42,571,202 1,976,707 10,835,354 8,980,330 42,535,800 2,422,590 9,588,450 October ------November ------December ------
Status: Comply 3.2 Retention times for all records and reports shall be at least five (5) years. According to procedure of Identification and trackability (SOP/BWLM/SIK) revision 1 on January 10th 2013, storing period of the report of FFB receipt at POM, process of oil palm, CPO product storing, Palm Kernel and CPO product delivery is 10 (ten) years. Status: Comply 3.3 The facility shall record and balance all receipts of RSPO certified FFB and deliveries of RSPO certified CPO, PKO and palm kernel meal on a three-monthly basis. Indrasakti Mill has implemented supply chain Segregation Model and procedure in term of SG Model has been implemented in accordance with SOP of Supply Chain RSPO Product of Segregation Model (No. Dok: PT MNIS-INKM/SOP-SCCS/03, on April 1st 2014). All requirement elements of Segregation has been described on the that procedure, including element of Raw Material receipt from the RSPO-Certified supply source. Segregation Actual Production of INKM Year 2014
Dispatch Processed FFB Produced CPO Produced Kernel Month CPO Kernel
Month To date Month To date Month To date Month To date Month To date
Apr – Jun 93,772,750 184,331,790 19,462,249 38,498,441 4,971,967 9,864,561 19,341,040 38,399,250 4,935,500 10,367,220 113,667,970 503,442,560 23,108,953 103,209,979 5,863,387 23,234,760 101,955,960 23,159,420 Jul - Sept 26,379,726 4,652,950
Status: Comply 3.4 The following trade names should be used and specified in relevant documents, e.g. purchase and sales contracts, e.g. *product name*/MB or Mass Balance. The supply chain model used should be clearly indicated. Indrasakti Mill has conducted product sales with claim of klaim Segregation. However, there is no transaction in term of RSPO-Certified product for one year. Simulation of goods out with claim of ISCC Certification is available. Sample of invoice for RSPO-Certified product sales: 1. Sample of Sales Contract/Delivery Order CPO Sales from INKM is delivered to Downstream (Bulking) at Sei Bayas. Sample of Sales Contract: No: DIC/2350/270814/0004 Date: 27.08.2014 Buyer: Buana Wiralestari Mas Company Sinar Mas Land Plaza Menara 2 Lt. 30. Jl MH Thamrin No 51 Gondangdia Menteng. Central Jakarta DKI Jakarta – 10350 Product desc: CPO; Quantity: 7,000,000 kg; Term of Delivery: FCO (Franco) Sei Bayas Bulking, Rengat Shipment: 28/08/2014 – 03/09/2014 Payment terms: 7 days after the product received Quality/Weight: Sei Bayas Bulking Origin: PKS Indrasakti Destination: Sei Bayas Bulking, Rengat SPO – 4006a.6 Halaman 63 Prepared Mutuagung Lestari for Indrasakti Mill – PT Meganusa Intisawit,Ivo Mas Tunggal
PT. MUTUAGUNG LESTARI
ASSESSMENT REPORT
Packaging: In Bulk Advising Bank: Meganusa Intisawit Company Spec: FFA Max: 5%; M+I: 0.5% Other terms: DO 2350/CPO/2350/14/T047; PO 4800023245 (DMI); EU-ISCC-Cert-DE104-07781403, GHG 1.297,64 kg CO2eq/ton.
Status: Comply 4 Sales and goods out 4.1 The facility shall ensure that all sales invoices issued for RSPO palm oil delivered include the following information: (a) The name and address of the buyer (b) The date on which the invoice was issued (c) A description of the product, including the applicable supply chain model (Segregated) (d) The quantity of the product delivered (e) Reference to related transport documentation Indrasakti Mill has conducted product sales with claim of klaim Segregation. However, there is no transaction in term of RSPO-Certified product for one year. Simulation of goods out with claim of ISCC Certification is available. Sample of invoice for RSPO-Certified product sales: 1. Sample of Sales Contract/Delivery Order CPO Sales from INKM is delivered toDownstream (Bulking) at Sei Bayas. Sample of Sales Contract: No: DIC/2350/270814/0004 Date: 27.08.2014 Buyer: Buana Wiralestari Mas Company Sinar Mas Land Plaza Menara 2 Lt. 30. Jl MH Thamrin No 51 Gondangdia Menteng. Central Jakarta DKI Jakarta – 10350 Product desc: CPO; Quantity: 7,000,000 kg; Term of Delivery: FCO (Franco) Sei Bayas Bulking, Rengat Shipment: 28/08/2014 – 03/09/2014 Payment terms: 7 after the product received Quality/Weight: Sei Bayas Bulking Origin: Indrasakti POM Destination: Sei Bayas Bulking, Rengat Packaging: In Bulk Advising Bank: Meganusa Intisawit Company Spec: FFA Max: 5%; M+I: 0.5% Other terms: DO 2350/CPO/2350/14/T047; PO 4800023245 (DMI); EU-ISCC-Cert-DE104-07781403, GHG 1.297,64 kg CO2eq/ton.
Status: Comply 5 Processing 5.1 The facility shall assure and verify through clear procedures and record keeping that the RSPO certified palm oil is kept segregated from non certified material including during transport and storage and be able to demonstrate that is has taken all reasonable measures to ensure that contamination is avoided. The objective is for 100 % segregated material to be reached. The systems should guarantee the minimum standard of 95 % segregated physical material9; up to 5 % contamination is allowed. Procedure of SOP of Supply chain of RSPO Product of Segregation Modul (MNIS-INKM/SOP-SCCS/03). On April 1st2014. Legalized by production controller, and Mill Manager. Point 6.4 regulates the received raw material process and delivered to
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processing station. FFB is processed in accordance with SOP of processing stage (MCMD chapter II) and then CPO and Kernel will be produced. Conversion of FFB to CPO (OER) and Kernel product (KER) are written on daily production report. Stages for the conversion of segregation (SG) model from MB model are: - Ensure stock of the previous SCCS model has out of stock and storing tank is empty. - Washing CPO tank and cleaning Kernel Storage Bin and transport tank. - KSBis ready to be used to store product which is processed based on SCCS SG. - Sorting and receiving of raw material from segregation source. - Storage tank and transport tank is labelized SG Certified to differentiate product and truck which are allocated to be registered to Weighbridge (WB) program.
Note: there was declaration of Naga Sakti Mill on April 1st 2014 in term of the implementation of Segregation supply chain system, supported by evidence of the list of P&C/RSPO-Certified FFB supplier, draining of CPO storage tank and Kernal Storage Bin, Washing CPO storage tank and kernel storage bin, implementation of training and socialization of CCP management of raw material and product, evidence of washing action of tank and vehicle and Labelizing SG to truck, police number registration which transport SG-labelized productand receiv/process certified FFB in accordance with the list of supplier. The regulated FFB supplier are 17 (seventeen) certified supplier (on April 1st 2014) and no changes from previous main assessment visitation (ST-1) and there was no uncertified FFB and production process is considered as SG supply chain model. Status: Comply 5.2 The facility shall provide documented proof that the RSPO certified palm oil can be traced back to only certified segregated material. Indrasakti Mill has shown documentation evidence of RSPO-Certified product which are traceable CPO and Kernel. According to document observation on October 22nd 2014, CPO and Kernel production is traceable to the suppliers estate. Entire document is well recorded and stored at Indrasakti Mill. Record evidence of from FFB Transport Covering Letter and Evidence of Weighing Ticket is available, for example: FFB Transport Covering Letter (SPB) No: Supplier code/Type of Product/Division/Year/Month/Serial Number of FFB Transport Covering Letter. SPB No: IDSE/TBS/01/14/10/002072; Estate: Indrasakti (IDSE); Division 01: Inti; Vehicle Police Number: BM 8412 TN; datel: October 21st2014; Blok: G35 & G36; FFB Quantity: 462 FFB; taksasi: 8,310 kg. Weighin Ticker Number: A039793 039863; TBS: 1st weight: 17,380 kg; 2nd weight: 9,530 kg; NET Weight (Total Cert. Prod.): 7,850 kg; From: Indrasakti Estate Div.01; Quantity: 462 JJG (8,310 kg); Delivery Note: IDSE/2320/TBS/01/14/10/2072; Transporter: 300565 – Indrasakti; Driver: Monang; Clerk: Rita Febriani. FFB Transport Covering Letter (SPB) No: Supplier code/Type of Product/Division/Year/Month/Serial Number of FFB Transport Covering Letter. SPB No: IDSA/TBS/03/14/ / ; Estate: Indrasakti Scheme Smallholder (IDSA); Division Hidup Baru: Scheme Smallholder; Vehicle Police Number: BM 9317 BE; date: October 21st2014; Blok: L24; FFB Quantity: 600 FFB; taksasi: 9,100 kg. Weighin Ticket Number: A039758 039832; TBS: 1st weight: 13,800 kg; 2nd weight: 4,010 kg; NET Weight (Total Cert. Prod.): 9,790 kg; From: Kebun: Indrasakti Plasma Div.03; Quantity: 600 JJG (9,100 kg); Delivery Note: IDSA/2320/TBS/03/14/10/1889; Transporter: 713281 – Hidup Baru : Driver: Rijal; Clerk: Rita Erikson.
Status: Comply 5.3 In cases where a mill outsources activities to an independent palm kernel crush, the crush still falls under the responsibility of the mill and does not need to be separately certified. The mill has to ensure that: The crush operator conforms to these requirements for segregation SPO – 4006a.6 Halaman 65 Prepared Mutuagung Lestari for Indrasakti Mill – PT Meganusa Intisawit,Ivo Mas Tunggal
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The crush is covered through a signed and enforceable agreement Indrasakti Mill does not has Kernel Crushing Plant (KCP). Kernel product produced from certified FFB process is delivered to Kernel Crushing Plant (KCP) of Ramarama and KCP of Libo (prioritized) and delivered to the third party (customer). Entire processed PK delivery from certified FFB in written daily on daily production report. According to the recent data, the processed PK until October 2014 was 10,835,354Kg (KER 5.22%). Ammount of the delivered product (Dispatch Kernel) untill October 21st 2014 was 9,588,450 Kg. Status: Comply 6 Training 6.1 The facility shall provide the training for all staff as required to implement the requirements of the Supply Chain Certification Systems Indrasakti Mill has evidence of supply chain system (SCCS) training: Attendance List of Socialization on September 13th 2014 (16 Participants). Training Subject of Socialization of Implementation Procedure of Product Traceable with Supply Chain Segregation Model in Indragiri Region, conducted by Sustainability Division on September 2014. Attendance List of Socialization Participant of SCCS from the Security Officer on October 11th 2014 (5 participants) and Photograph Attachment of Socialization Program Implementation. Attendance List of Socialization Participant of SCCS in Grading Line B of Indrasakti Mill on October 11th2014 (25 participants) and Attachment of Socialization Program Implementation Photograph. Attendance List of Socialization Participant of SCCS in Loading Ramp of Indrasakti Mill on Oktober 13th 2014 (32 participants) and Attachment of Socialization Program Implementation Photograph.. Attendance List of Socialization Participant of SCCS in Indrasakti Mill Laboratory on October 14th 2014 (Peserta 6 orang) and Attachment of Socialization Program Implementation Photograph. Attendance List of Socialization Participant of SCCS in Indrasakti Mill Meeting Room onOctober 16th 2014 (14 participants) and Attachment of Socialization Program Implementation Photograph. Attendance List of Socialization Participant of SCCS in Grading Line B of Indrasakti Mill on October 18th 2014 (26 participants) and Attachment of Socialization Program Implementation Photograph. Status: Comply 7 Claims 7.1 The facility shall only make claims regarding the use of or support of RSPO certified oil palm products that are in compliance with the RSPO Rules for Communications and Claims. SOP of Supply Chain of RSPO product of Segregated model (MNIS-INKM/SOP--SCCS/03 on April 1st2014), Point 6.7.4 in term of product delivery describes that product delivery letter (SPP) in form of CPO to Bulking Sei Bayas and Palm Kernel to Ramarama KCP, Libo KCP and Costumers (third party). Product delivery is not attaching RSPO logo, trademark, and label as regulated on RSPO Rules for Communications and Claims, because products is still transported within mills area and the final form are CPO and Palm Kernel Oil which is still considered as raw material. Status: Comply
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3.3. Conformity Checklist of Certificate and Logo Use
1. Evidence of permission or approval certificate and logo from Certification Body which X or√ submitted by Client ASA-1 PT Meganusa Intisawit has had approval / permit to use the certificate with the number MUTU- X RSPO/033. Status: NA
2. Implementation of certificate and logo used by Client comply with size and type (shape) X or√ against Guideline of Logo Use ASA-1 The certificate holder does not use the logo on-product and off-product. X Status: NA 3. Implementation of Certificate and Logo is not used on product X or√
ASA-1 The certificate holder does not use the logo on-product and off-product. X Status: NA 4. Controlling of Certificate and Logo, including withdrawing inappropriate logo. X or√
ASA-1 The certificate holder does not use the logo on-product and off-product. X Status: NA
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3.4. Summary of RSPO Partial Certification.
The ManagementUnit name, under subsidiaries: 2.1 There is compliance with all applicable local, national and ratified international laws and X or√ regulations. The entireunits operating under the PT Ivo Mas Tunggal organization (subsidiary) carry outthe certificationprocessaccording toTIMEBOUNDPLAN and 100% certified. Status: NA
2.2 The right to use the land can be demonstrated, and is not legitimately contested by local X or√ communities with demonstrable rights. The entireunits operating under the PT Ivo Mas Tunggal organization (subsidiary) carry outthe certificationprocessaccording toTIMEBOUNDPLAN and 100% certified. Status: NA
6.3 There is a mutually agreed and documented system for dealing with complaints and X or√ grievances, which is implemented and accepted by all parties. The entireunits operating under the PT Ivo Mas Tunggal organization (subsidiary) carry outthe certificationprocessaccording toTIMEBOUNDPLAN and 100% certified. Status: NA
6.4 Any negotiations concerning compensation for loss of legal or customary rights are dealt with through a documented system that enables indigenous peoples, local communities and X or√ other stakeholders to express their views through their own representative institutions. The entireunits operating under the PT Ivo Mas Tunggal organization (subsidiary) carry outthe certificationprocessaccording toTIMEBOUNDPLAN and 100% certified. Status: NA
7.3 New plantings since November 2005, have not replaced primary forest or any area required X or√ to maintain or enhance one or more High Conservation Values. The entireunits operating under the PT Ivo Mas Tunggal organization (subsidiary) carry outthe certificationprocessaccording toTIMEBOUNDPLAN and 100% certified. Status: NA
7.5 No new plantings are established on local peoples’ land without their free, prior and informed consent, dealt with through a documented system that enables indigenous X or√ peoples, local communities and other stakeholders to express their views through their own representative institutions. The entireunits operating under the PT Ivo Mas Tunggal organization (subsidiary) carry outthe certificationprocessaccording toTIMEBOUNDPLAN and 100% certified. Status: NA
7.6 Local people are compensated for any agreed land acquisitions and relinquishment of X or√ rights, subject to their free, prior and informed consent and negotiated agreements. The entireunits operating under the PT Ivo Mas Tunggal organization (subsidiary) carry outthe certificationprocessaccording toTIMEBOUNDPLAN and 100% certified. Status: NA
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3.5 Identification of Findings, Corrective Action, Observations, Opportunity for Improvement and Noteworthy Positive Components.
3.5.1 Identification of Findings, Corrective Actions andObservations atSurveillance-01 Assessment CAR Time Closing Ref Std Finding Area Grade Corrective Action Observation Status No Limits Date - - During the first surveillance assessment ------there was no non conformance identified.
3.5.2 Opportunity for Improvement atSurveillance-01 Assessmenton own estate No Ref Std Descriptions Major - Company has opportunity to follow up information in term of document process which shows right for the land. 2.2.1 Minor - Company has opportunity to evaluate data consistency between FFB delivery data from estate with grading data. 4.1.2
3.5.3Opportunity for Improvement at Surveillance-01 Assessmenton smallholder No Ref Std Descriptions Minor Manajemen unit has opportunity to improve awareness of smallholders on the practice to maintain water surface quality. - 4.4.1
3.5.4 Noteworthy Positive Components at Surveillance-01 Assessment
No Ref Std Descriptions 1. Minor Company provides non-formal education in term of Informal Education Cottage which is purposed to improve knowledge and ability of the employees, employees family, and 6.5.1 the society nearby estate. 2. Company’s committment to implement sustainable palm oil principle. 3. Providing person in charge in accordance with proper competence according to their position and person in charge in term of P&C RSPO.
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No Ref Std Descriptions 4. Company has established scheme smallholders estate for 13,778 Ha, which is consisted of 16 Cooperation unit, 267 smallholders group with members of 6,989 Head of Family. 5. All Scheme Smallholders Village Cooperation Unit has shown their commitent to support RSPO standard compliance and they are open to conduct sustainable improvement. 6. Has achieved ISCC certificate on 2013.
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3.6 Summary of Arising Issues from Public, Management and Auditor Response
Public Issues Management Responses Auditor Responses (Institution/ NGO/Community) Indragiri Hulu District Labour Agency Meganusa Intisawit Company has rountinely reported Company has committed to report manpower aspect In accordance with Major Indicator 2.1.1 responsibilities in term of Labour aspect, for example: routinely, such as: - Responsibility to Report Labour (Evidence of report - Responsibility to Report Manpower, including Foreign and date of received report on September 15th is Employees available),including Foreign Employees Report. - Report of OHS Guiding Comittee - Report of OHS Guiding Committee. Meganusa Intisawit Company has given Salary according Company has committed to give salary in accordance with In accordance with criteria 6.5 to the valid regulation of Indragiri Hulu District Minimum Minimum Wage Standard on Indragiri Hilir for year 2013. Wage Standard for 2013. No report or issues in term of manpower conflict. No report or issues in term of underage workers (18< years Company has committed to avoid issues of manpower In accordance with criteria 6.1 old). conflict. No work accident occured during last one year. Company has committed to not to employ underage In accordance with criteria 6.7 Meganusa Intisawit Company has conducted policy in term workers (18< years old) of Government Regulation Nomor 2 tahun 1992 Indragiri Company has committed to give report in term of work In accordance with Minor Indicator 4.7.8 Hulu District in term of local manpower emplacement accident according to workers ability. Company has committed to implement policy in term of In accordance with Major Indicator 2.1.1 Local Government Regulation Nomor 2 tahun 1992 Suggestion: Indragiri Hulu Districtin term of local manpower Meganusa Intisawit Company has to concern and complies emplacement in accordance with workers ability. Ministry of Labour Regulation No 19 tahun 2012 in term of Requirement for Authorization given to Other Company. Meganusa Intisawit Company has to review legality of the Company has concerned Ministry of Labour Regulation No 19 In accordance with Major Indicator 2.1.1 company which is given authority to conduct operation at tahun 2012 in term of Requirement of the authorization of estate and mill particularly the safety equipments which are company operation that is given to other party. to review provided. The contract of authorization given to other legality of the company which is given authority to conduct company must be reported to the local District Manpower operation at estate and mill particularly the safety equipments Agency. which are provided. The contract of authorization given to other company must be reported to the local District SPO – 4006a.6 Halaman71 Prepared Mutuagung Lestari for Indrasakti Mill – PT Meganusa Intisawit , PT IVO MAS TUNGGAL.
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Public Issues Management Responses Auditor Responses (Institution/ NGO/Community) Manpower Agency.
Indragiri Hulu District Plantation Agency Meganusa Intisawit Company has reported Development Company has committed to report Plantation Business In accordance with Major Indicator 2.1.1. of Plantation Business for the 1st semester period of 2014 Development based on 6 month-based for 2014. (the Recieved report is available) Company has committed to realizing estate establishment Company has given positive impact to the community Meganusa IntisawitCompany has realizing scheme for village community for ± 14,052 Ha, scheme smallholder nearby by the establishment of scheme smallholders smallholder establishment for village community for ± cooperation unit. estate. 14,052 Ha, Scheme Smallholders Cooperation Unit 16. Company has committed to comply the applicable FFB In accordance with Major Indicator 6.10.2. The applicable price of FFB Purchase from smallholders in purchase price decided by Plantation Agency with in accordance with the price decided by Plantation Agency agreement of other related parties. according to agreement with the related parties. Company has committed to avoid issues of negative In accordance with criteria 5.1. No issue of negative impact caused by operation of mill impact caused by estate and mills operation. and estate so far. Company has committed to avoid issues of land In accordance with criteria 2.2. No issue of land management dispute between company management conflict between company and other related and other parties. parties. Company will socialize or control chemicals usage in In accordance with criteria 4.8. Suggest: spraying operation, according to the fact that chemicals Managementof Meganusa Intisawit has to socialize or might used in high dosage and used oftenly. control chemicals usage in spraying operation, according Company has committed to empower In accordance with criteria 6.11. to the fact that chemicals might used in high dosage and smallholders/cooperation unit with business partnership used oftenly. (productive business). Empowerment of smallholder/cooperation unit with business partnership (other productive business) Indragiri Hulu District National Land Agency Meganusa IntisawitCompany has requested Indragiri Hulu District National Land Agency to get Land Use Title.District Company has requested Indragiri Hulu District National Will be observed on the next field trip and consultation National Land Agency is waiting the issuance of map of Land Agency to get Land Use Title.District National Land with related agencies will be conducted. forest area that will be used for estate establishment in Agency is waiting the issuance of map of forest area that Riau. Process of submission of the area planned to be will be used for estate establishment in Riau. Process of
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Public Issues Management Responses Auditor Responses (Institution/ NGO/Community) used for estate must adjust Map that refer to submission of the area planned to be used for estate must SK.673/Menhut-II/2014 on August 8th tahun 2014 in term adjust Map that refer to SK.673/Menhut-II/2014 on August of Conversion of forest area to non-forest area for ± 8th tahun 2014 in term of Conversion of forest area to non- 1,638,294 Ha, Change of Forest Area Function for ± forest area for ± 1,638,294 Ha, Change of Forest Area 717,543 Ha and Conversion of Non-Forest Area to Forest Function for ± 717,543 Ha and Conversion of Non-Forest area for ± 11,552 Ha in Riau Province. Area to Forest area for ± 11,552 Ha in Riau Province No issues in term of conflict of land management between Company has commited to avoid issues of land In accordance with criteria 2.2. company and other related parties. management conflict between company and other related No costumary right area on Indragiri Hulu District. parties. No issues and report from other party in term of negative No costumary right area on Indragiri Hulu District.. In accordance with criteria 2.2. impact toward environment caused by operation of Company has commited to avoid issues and report from In accordance with criteria 5.1. Meganusa Intisawit Company estate and mills. other parties in term of negative impact caused by Most of scheme smallholders estate area has been operation of Meganusa Intisawit Company estate and mills. certified as (± 5,300 land owner smallholders) and the rest Most of scheme smallholders estate area has been ± 100 are being processed. certified as (± 5,300 land owner smallholders) and the rest In accordance with criteria 2.2. ± 100 are being processed and company will support the issuance progress. Hulu District Environmental Agency Sub district Indragiri Hulu Meganusa Intisawit Company has routinely reported Company has commited to report responsibilities in term of In accordance with criteria 2.1. responsibilities in term of environment aspect, for example: environment aspect, for example: - Report of Environmental Management and Monitoring - Report of Environmental Management and Monitoring Plan Implementation of 1st Semester period of 2014. Plan Implementation of 1st Semester period of 2014. - 1st Quarter and 2nd Quarter Report of Effluent - 1st Quarter and 2nd Quarter Report of Effluent Management. Management. - Report of Hazardous Waste Management. - Report of Hazardous Waste Management. Indragiri Hulu District Environment Agency has approved Document of Environmental Management and Monitoring Coverage of ASA-1 Activity is 1 factory and 1 POM. Environment Permit (October 16th 2014) for Program of Effort which has been revised will be delivered to Indragiri Document of Environmental Management and Monitoring Construction of Meganusa Intisawit Company POM Hulu District Environmental Agency. Effort is reference for the construction of MNIS Company however, Decree of permits has not yet granted to new mills. company due to revision of Environmental Management and Monitoring Effort Document. SPO – 4006a.6 Halaman73 Prepared Mutuagung Lestari for Indrasakti Mill – PT Meganusa Intisawit , PT IVO MAS TUNGGAL.
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Public Issues Management Responses Auditor Responses (Institution/ NGO/Community) No issues and report from other party in term of negative Company has commited to avoid issues and report from In accordance with criteria5.1. impact toward environment caused by operation of other parties in term of negative impact caused by Meganusa Intisawit Company estate and mills. operation of Meganusa Intisawit Company estate and mills. Company has commited to avoid conflict of land No issues in term of conflict of land management between management between company and other related parties. In accordance with criteria 2.2. company and other related parties. Company will inform the evidence of MoU between Meganusa IntisawitCompany is not informing evidence of Meganusa Intisawit Company with Buana Wira Lestari MoU between Meganusa Intisawit Company with Buana Company in term of mills effluent utilization (Land In accordance with criteria 5.3. Wira Lestary Company in term of effluent utilization (Land Aplication) in estate area. Aplication) in estate areaby mills. Talang Sukamaju Village Company has given positive impact such as scheme Company has commited to give positive effect such as In accordance with criteria 6.1. smallholders estate establishment and guiding community scheme smallholders estate establishment and guiding to manage the scheme smallholders estate untill now. community to manage the scheme smallholders estate No social conflict between community and MNIS untill nowdays. Company occured yet. Company has principle to avoid social conflict with the In accordance with criteria 2.2. community. Beligan Village Company has given positive impact such as scheme Company has commited to give positive effect such as In accordance with criteria 6.1. smallholders estate establishment and guiding community scheme smallholders estate establishment and guiding to manage the scheme smallholders estate untill now. community to manage the scheme smallholders estate No social conflict between community and MNIS untill nowdays. Company occured yet. Company has principle to avoid social conflict with the In accordance with criteria 2.2. community. Talang Mulya Village Company has given positive impact such as scheme Company has commited to give positive effect such as In accordance with criteria 6.1. smallholders estate establishment and guiding community scheme smallholders estate establishment and guiding to manage the scheme smallholders estate untill now. community to manage the scheme smallholders estate No social conflict between community and MNIS untill nowdays. Company occured yet. Company has principle to avoid social conflict with the In accordance with criteria 2.2. community.
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Public Issues Management Responses Auditor Responses (Institution/ NGO/Community) Talang Bersemi Village Company has given positive impact such as scheme Company has commited to give positive effect such as In accordance with criteria 6.1. smallholders estate establishment and guiding community scheme smallholders estate establishment and guiding to manage the scheme smallholders estate untill now. community to manage the scheme smallholders estate No social conflict between community and MNIS untill nowdays. Company occured yet. Company has principle to avoid social conflict with the community. In accordance with criteria 2.2.
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4.0 CERTIFIED ORGANISATION'S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY
4.1 Formal Sign-off of Assessment Findings
Hereunder sign by management representative from inspected company to acknowledge a field assessment and agree for all content explained in this assessment report, included of non-compliance findings.
Signed on behalf of:
PT Meganusa Intisawit – Ivo Mas Tunggal PT Mutuagung Lestari Head of Environmental Department Lead Auditor
Ismu Zulfikar Ardiansyah Monday, 17 November 2014 Monday, 17 November 2014
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Appendix 1. List of Stakeholder Contacted in the RSPO Certification Process
Form of Date of No Institution/NGO/Community Address Phone/Email Communication Contact 1. Indragiri Hulu District Indragiri Hulu District, - Interview 21 October Plantation Agency. Riau Province 2014 2. Indragiri Hulu District Indragiri Hulu District, - Interview 21 October Environmental Agency. Riau Province 2014
3. Indragiri Hulu District Indragiri Hulu District, - Interview 21 October Plantation Agency. Riau Province 2014 4. Indragiri Hulu District Indragiri Hulu District, - Interview 21 October National Land Agency. Riau Province 2014 5. World Wild Found (WWF). - [email protected] Email 8 October 2014 6. Wahana Lingkungan Hidup - [email protected] Email 8 October (WALHI). 2014 7. Sawit Watch. - [email protected] Email 8 October d 2014 8. Aliansi masyarakat adat - [email protected] Email 8 October nasional (AMAN). t.id 2014 9. Jaringan Kerja Indragiri Hulu District, secretariat@jiklahar Email 8 October PENYELAMAT Hutan Riau Riau Province i.org 2014 (JIKALAHARI) 10. Head of Talang Sukajadi/ Indragiri Hulu District, - Meeting 22 October Talang Sukajadi Village. Riau Province 2014
11. Head of Jaya Bersama/ Indragiri Hulu District, - Meeting 22 October Beligan Village. Riau Province 2014
12. Head of Margo Mulyo Indragiri Hulu District, - Meeting 23 October Cooperative/ Talang Bersemi Riau Province 2014 Village. 13. Head of Talang Subur/ Indragiri Hulu District, - Meeting 23 October Cooperative / Talang Mulya Riau Province 2014 Village.
SPO – 4006a.6 Halaman 77 Prepared Mutuagung Lestari for Indrasakti Mill – PT Meganusa Intisawit, Ivo Mas Tunggal
PT. MUTUAGUNG LESTARI
ASSESSMENT REPORT
Appendix2. Assessment Program
DATE October 20th – October 24th, 2014 AUDITOR PROGRAM PROCESSES / CLAUSES TO BE AUDITED ARD OR APP MAY BP Mon,20 Oct 2014 06–08 am Flight from Jakarta to Pekanbaru √ √ √ √ √ 08 – 15 pm Traveling from Pekanbaru to Location √ √ √ √ √ 15–16pm Opening Meeting √ √ √ √ √ 16 – 17 pm Verification of ASA-1 findings and completing checklist √ √ √ √ √ Tue ,21 Oct 2014 08–12 am Stakeholder consultation to relevant agencies at Rengat √ Field Observations Indraskti Estate: Manuring, Spraying, Harvesting, IPM, Workers safety, facilities. √ √ Indrasakti Mill: Mill Processing, OHS Implementation, POM waste management, SCCS, etc. √ √ √ 12–14pm Lunch break √ √ √ √ √ 14–17pm Verification of field visit, Stakeholder consultation and completing checklist √ √ √ √ √ Wed ,22 Oct 2014 08–12 am Field Observations: Indraskti Estate: Workers facilities (housing, health care, school, union, etc.), Waste √ management (landfill, sanitary), land fire facility, Warehouse.
Talang Sukajadi: √ - Legal boundary, HCV management area, land fire √ - Manuring, Spraying, Harvesting, IPM, Workers safety - Facilities & Waste management
Jaya Bersama:
- Legal boundary, HCV management area, land fire √ - Manuring, Spraying, Harvesting, IPM, Workers safety √ - Facilities & Waste management
Lunch break 12–14pm √ √ √ √ √ Verification of field visit and completing checklist 14–17pm √ √ √ √ √ Thu,23 Oct 2014 08–12 am Field Observations: Margo Mulyo: - Legal boundary, HCV management area, land fire - Manuring, Spraying, Harvesting, IPM, Workers safety √ √ √ - Facilities & Waste management
Talang Subur:
- Legal boundary, HCV management area, land fire - Manuring, Spraying, Harvesting, IPM, Workers safety √ √ - Facilities & Waste management
Lunch break 12–14pm √ √ √ √ √ Verification of field visit and completing checklist 14–17pm √ √ √ √ √ Closing meeting at location 19 – 21 pm √ √ √ √ √ Fri ,24 Oct 2014
08–14pm Traveling from Locationto Pekanbaru √ √ √ √ √
SPO – 4006a.6 Halaman 78 Prepared Mutuagung Lestari for Indrasakti Mill – PT Meganusa Intisawit, Ivo Mas Tunggal
PT. MUTUAGUNG LESTARI
ASSESSMENT REPORT
Appendix 3. Glossary
AMDAL(SEIA) : Analisis Mengenai Dampak Lingkungan(Social Environmental Impact Assessment). APAR : Alat Pemadam Api Ringan(Fire Extinguisher). APD (PPE) : Alat Pelindung Diri(Personal Protective Equipment). B3 : Bahan Beracun Dan Berbahaya (Hazardous Waste). BLH : Badan Lingkungan Hidup(Environmental Agency). CPO : Crude Palm Oil. EWS : Early Warning System. HCV : High Conseravation Value. HGU : Hak Guna Usaha (Land Use Title). IDLA : Indralestari Plasma. IDSA : Indrasakti Plasma. IDSE : Indrasakti Estate. INKM : Indrasakti Mill. INDA : Indragiri Plasma. K3 / OSH : Keselamatan dan Kesehatan Kerja(Occupational Health and Safety). KKPA : Koperasi Kredit Primer Anggota (Credit primary cooperative members). KUD : Koperasi Unit Desa (Cooperative of Village). LB3 : Limbah Beracun Dan Berbahaya(Hazardous Material Waste). LC : Land Clearing. MSDS : Material Sheet Data Safety. : Panitia Pembina Keselamatan Dan Kesehatan Kerja P2K3 (Guiding Committee of Occupational Safety &Health). P3K : Pertolongan Pertama Pada Kecelakaan (First aid in a work accident). PHT / IPM : Pengendalian Hama Terpadu(Integrated Pest Management). PIRTRANS : Perkebunan Inti Rakyat Transmigrasi. PK : Palm Kernel. PKB : Perjanjian Kerja Bersama (Work Agreement) PKO : Palm Kernel Oil. PT. BWL : PT. Buana Wira Lestarimas. PT. MNIS : PT. Meganusa Intisawit. : Rencana Kelola Lapangan / Rencana Pemantauan Lingkungan RKL/RPL (Environmental Management Plan/ Environment Monitoring Plan). RSPO : Roundtable Suistanable Palm Oil. SCCS : Suply Chain Certification System. SMARTRI : SMART Research Institute. : Sistem Manajemen Keselematan Dan Kesehatan Kerja SMK3 / OHSAS (Management SystemOccupational Health and Safety). SOP : Standard Operating Procedure. SPSI : Serikat Pekeja Seluruh Indonesia. (Labour Union) TBM : Tanaman Belum Menghasilkan (Immature Plant). TBS / FFB : Tandan Buah Segar (Fresh Fruit Bunch). TM : Tanaman Menghasilkan (Mature Plant). TPS : Tempat Penyimpanan Sementara (Temporary Storage). TPSA : Tempat Pembuangan Sampah Akhir (Landfill) : Unit Kelola Lingkungan / Unit Pemantauan Lingkungan UKL/UPL (Environmental Management Efforts/ Environmental Monitoring Efforts). UPDKS : Ulat Pemakan Daun Kelapa Sawit.
SPO – 4006a.6 Halaman 79 Prepared Mutuagung Lestari for Indrasakti Mill – PT Meganusa Intisawit, Ivo Mas Tunggal