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Roundtable on Sustainable Palm Oil Public Summary Report Report No: 106469

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Roundtable on Sustainable Palm Oil Public Summary Report Report No: 106469 Roundtable on Sustainable Palm Oil Public Summary Report Report no: 106469 Certification assessment against the RSPO Principles & Criteria [Indonesia National Interpretation 2008] PT Mustika Sembuluh Central Kalimantan, Indonesia. Subsidiary of Wilmar International Limited Report prepared by: Dian S. Soeminta Malaysian office: Indonesian office: TUV Rheinland Malaysia Sdn. Bhd. PT TÜV International Indonesia No. 26 – 32, Jalan Perindustrian USJ 1/6, Menara Karya 10th Floor Taman Perindustrian USJ 1, Jl. H.R. Rasuna Said Block X-5 Kav 1-2 47600 Subang Jaya, Jakarta 12950 Selangor Darul Ehsan, Malaysia. Tel : +62 (0)21 – 579 44 579 Tel: +6 03 8024 2400 Fax : +62 (0)21 – 579 44 575 Fax: +6 03 8023 1505 www.tuv.com www.tuv.com TABLE OF CONTENTS 1.0 SCOPE OF CERTIFICATION ASSESSMENT ....................................................................................3 1.1 National Interpretation Used ........................................................................................................3 1.2 Type of Assessment ....................................................................................................................3 1.3 Location and Maps ......................................................................................................................3 1.4 Description of Supply Base for year 2010....................................................................................7 1.5 Dates of Plantings and Replanting Cycles...................................................................................8 1.6 Other Achievements and Certifications Held ...............................................................................8 1.7 Organisational Information / Contact Person ...............................................................................9 1.8 Company History, Environment and Socio-economic Context.....................................................9 1.9 Time Bound Plan for Other Management Units .........................................................................14 1.10 Area of Plantation (Total, Planted and Mature)........................................................................18 1.11 Approximate Tonnages Certified .............................................................................................18 1.12 Recommendation for Certification............................................................................................18 1.13 Date of Certificate Issued and Scope of Certificate .................................................................18 2.0 ASSESSMENT PROCESS ................................................................................................................19 2.1 Certification Body.......................................................................................................................19 2.2 Qualifications of Lead Assessor and Assessment Team ...........................................................19 2.3 Assessment Methodology..........................................................................................................20 2.4 Stakeholder Consultation and Stakeholders Contacted.............................................................22 2.5 Date of Next Surveillance Visit...................................................................................................22 3.0 ASSESSMENT FINDINGS.................................................................................................................23 3.1 Summary of Findings.................................................................................................................23 3.2 Identified Non-conformances, Corrective Actions Taken and Auditors Conclusions..................42 3.3 Noteworthy Positive Components..............................................................................................49 3.4 Issues Raised by Stakeholders and Findings Pertaining to Issues............................................50 3.5 Acknowledgements of Internal Responsibility and Formal Sign-Off by Client............................66 APPENDICES ..........................................................................................................................................67 Appendix 1: Details of Certificate.....................................................................................................67 Appendix 2: Certification Audit Plan.................................................................................................67 Appendix 3: List of Abbreviations.....................................................................................................71 Appendix 4: List of Stakeholders Consulted ....................................................................................72 Appendix 5: List of Opportunities for Improvement ..........................................................................75 RSPO Certification Assessment Report - PT Mustika Sembuluh – Central Kalimantan - Page 3 of 77 1.0 SCOPE OF CERTIFICATION ASSESSMENT 1.1 National Interpretation Used The operations of the palm oil mill(s) and its supply base of FFB were assessed against the Indonesian Na- tional Interpretion of the RSPO Principles & Criteria: May 2008. 1.2 Type of Assessment The main certification assessment was carried out on 1 mill and 3 estates under PT Mustika Sembuluh (PT MS) owned by Wilmar International. 1.3 Location and Maps Table 1: GPS Locations of PT Mustika Sembuluh Mill and Estates GPS locations Name of mill / estate Location Latitude Longitude PT MS Palm Oil Mill Pondok Damar Village, Mentaya 02°35’28” 112°30’45” Hilir Utara Subdistrict, Kotawar- ingin Timur District. PT MS Estate 1 Pondok Damar Village, Mentaya 02°35’10” 112°30’32” Hilir Utara Subdistrict, Kotawar- ingin Timur District. PT MS Estate 2 Pondok Damar Village, Mentaya 02°39’56” 112°32’18.5” Hilir Utara Subdistrict, Kotawar- ingin Timur District. Bangkal Village, Danau Sembu- lu Subdistrict, Seruyan District. PT MS Estate 3 Tanah Putih Village, Telawang 02°30’16.9” 112°30’36.6” Subdistrict, Kotawaringin Timur District. Source: Auditor Field Check by GPS Merk Garmin, November 2009 RSPO v2 2009-10-09 3 RSPO Certification Assessment Report - PT Mustika Sembuluh – Central Kalimantan - Page 4 of 77 Figure 1: Location map of PT Mustika Sembuluh within Kalimantan Island RSPO v2 2009-10-09 4 RSPO Certification Assessment Report - PT Mustika Sembuluh – Central Kalimantan - Page 5 of 77 PT Mustika Sembuluh Figure 2: Location map of PT Mustika Sembuluh within Central Kalimantan RSPO v2 2009-10-09 5 RSPO Certification Assessment Report - PT Mustika Sembuluh – Central Kalimantan - Page 6 of 77 PT MS Estate 3 PT MS Estate 1 & Mill PT MS Estate 2 Figure 3: Map of PT MS Estates 1, 2 and 3, and PT MS Palm Oil Mill RSPO v2 2009-10-09 6 RSPO Certification Assessment Report - PT Mustika Sembuluh – Central Kalimantan - Page 7 of 77 1.4 Description of Supply Base for year 2010 Mustika Sembuluh mill is one of the palm oil mills that is owned by Wilmar International in Central Kalimantan. Mustika Sembuluh Mill was established in 2006 with production capacity 60 tons/hours in accordance with the legal regulations ‘Keputusan BKPM No. 257/T/Pertanian/Industri/1989’ and ‘Keputusan BKPM No. 1293/T/Industri/2008’. Currently, Mustika Sembuluh Mill receives supplies from 3 company-owned estates, several other company owned estates, and several outgrowers, as described below. The other company-owned estates supplying to PT Mustika Sembuluh mill only supplied FFB to the mill until the end of 2009, and since January 2010, these other company-owned estates were supplying to another company-owned mill under PT Kerry Sawit. Hence, the FFB supply for the other company-owned estates were not included in the scope of this main assessment for PT Mustika Sembuluh. Table 2: FFB Supply Information for PT Mustika Sembuluh Mill. FFB supplied FFB Contributors Tonnes % Company owned estates: Estate 1 131,474 36.73 Estate 2 89,271 24.94 Estate 3 30,975 8.65 Other companies under Wilmar 105,512 29.47 International (various estates) Smallholders / outgrowers: Plasma 98 0.03 Others 955 0.18 TOTAL 357,985 100 Source: Incoming FFB from September 2008 to September 2009 (mill data) From the information above, the total amount of FFB supplied from the three estates under PT Mustika Sembu- luh for period September 2008 to September 2009 is 70.32% of the mill’s total FFB supply. All palms planted in PT Mustika Sembuluh estates are less than 10 years old. As such, being a relatively young plantation, the three estates have recorded a constant and significant increased in crop production since 2007 till 2009. This is attributed to the increase in area coming into production and as the palms gets into their prime bearing age. Table 3: Actual & Estimated FFB Production for PT Mustika Sembuluh for year 2007 – 2014 FFB PRODUCTION (tonnes) Actual Estimate ESTATE Year Year Year Year Year Year Year Year 2007 2008 2009 2010 2011 2012 2013 2014 MS-1 86,373 113,034 178,681 182,562 169,000 170,300 170,300 169,200 MS-2 13,764 52,036 95,481 137,565 134,000 147,000 152,600 156,500 MS-3 - 17,182 31,961 49,649 76,500 93,900 103,400 111,400 Total 100,138 182,252 306,124 369,776 379,500 411,200 426,300 437,100 RSPO v2 2009-10-09 7 RSPO Certification Assessment Report - PT Mustika Sembuluh – Central Kalimantan - Page 8 of 77 Table 3 indicates that PT Mustika Sembuluh will continue to experience a steady increased in FFB production over the next 5 years. This increased is expected as approximately 56% or 8,485 ha of its planted
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