Bulungan Regency - North Kalimantan Indonesia

Roundtable on Sustainable Palm Oil Reporting GHG Emissions

PT. Dharma Intisawit Lestari

Prepared by : PT. Dharma Intisawit Lestari 2015

Table of Contents

1. Assessment Process and Procedure...... 3 1.1. Assessor and their credentials...... 3 1.2. Assessment methods ...... 4 1.3. Responsible Team for developing mitigation plan ...... 6 2. Summary of Carbon Stock Assessment ...... 7 2.1. Location maps indicating area ………...... 7 2.2. Land Cover Stratification ...... 9 2.3. Map and description of all area PT DIL ………………………….…….………. 12 3. Summary of GHG emission ……………...... 14 4. References ...... 14 5. Summary of Management and Mitigaton Plans ...... 15 6. Internal Responsibility ...... 20

1 Assessment Process and Procedures 1.1 Assesors and their credentials Carbon Stock Assessment Report in land permit of PT. Dharma Intisawit Lestari presented by Aksenta (PT. Gagas Dinamiga Aksenta), consisting of four people. This is brief description of the name, qualification, skills, and role within the team.

Idung Risdiyanto, MSc in Natural Resources Management Technology in the International program organized by Institut Pertanian Bogor, after getting a bachelor's degree at the same university in the field of Agrometeorologi. Starting his career by doing research on GHG (Green House Gas) and water resources together with UNEP and PPLH IPB in 1997. After a lot of research with leading institutions in Indonesia such as LIPI, LAPAN, BPPT and BMKG. Almost all the work is the study of natural resource management, especially related to water resources, land and climate change technology using Geographic Information System (GIS), Remote Sensing, Spatial Modelling and Analysis. Idung Risdiyanto well as a team experts to the Ministry of Forestry of Indonesia to address the problems of managing watersheds (DAS) in Indonesia since 2007 and teaches courses in Climatology, Hydrometeorology, the application of GIS and Remote Sensing and Meteorological Satellite Bogor Agricultural Institute. HCV is currently the assessor in Aksenta and has been listed as the RSPO Approved HCVAssessor - Discipline Specialist in the field of Environmental Services. In this study the role and responsibility of being a supervisor CSA and team leader-1.

Yanto Ardiyanto; graduated from Institut Pertanian Bogor (IPB) Departemen Geofisika and Meteorologi of 2004. The activities most frequently addressed related water resource management (hydrology) and land (regional planning) from the Kemenhut, KemenLH, Bappeda and USAID. The most desirable areas of expertise is the spatial modeling with GIS and remote sensing to hydrology, spatial planning, agriculture and forestry. 2013 has been registered as an Approved RSPO HCVAssessor - Discipline Specialist in the field of Environmental Services. This time as an assessor in Aksenta HCV. In this study the role and responsible as Team Leader.

Bias Berlio Pradyatama; graduated from Institut Pertanian Bogor (IPB) Departemen Forest Resources Conservation and Ekowisata of 2015. Experience as a surveyor in the monitoring of HCV in PTPN V, Riau in 2015, the analysis of vegetation and habitat suitability in both Javan Rhino

Sanctuary Cikepuh, West Java and BKPH Cikeusik, Banten in 2015. In this team, responsible as assessor plant identification.

Ikwan Agustian; graduated from the Department of Forest Resources Conservation and Ecotourism, Faculty of Forestry, Institut Pertanian Bogor (IPB) in 2013. Experienced in a wide range of related surveys of Plant Diversity. Had joined in Independent Research Team Megalithic Sites Mount Padang part of the diversity of plants in 2013. Once a Post-Doctoral Research Assistant on the calculation of the biomass plant cooperation between Leeds University with the Borneo Orangutan Survival (BOS) in 2014. In this team, responsible as assessor plant identification.

Priyo Dwi U; Graduated with a degree in Meteorology Geophysics Institute of Agriculture (IPB) – Bogor in 2015. Later joined the team of Meteorological Satellites assistant in 2013 at a time into the laboratory portion of Meteorology and Atmospheric Pollution for the final project with the theme estimating carbon stocks based remote sensing. Experienced in the calculation of carbon stocks for the forest areas by identifying the spectral characteristics on each channel satellite imagery. Within this team to act as enumerators underbrushing

1.2 Methodology and procedures used for conducting carbon stock and GHG assessments 1.2.1 Methodology and procedures carbon stock assessment Stages of activity measurement and mapping carbon stocks in the concession area of PT DIL grouped into four stages, namely (i) a desk study, (ii) field surveys, (iii) laboratory analysis and (iv) data analysis, mapping and reporting. These stages are composed of a series of activities as presented in Figure 1.

Figure 1. Methods and procedures carbon stock assessment

1.2.2 Methods and procedures GHG assessment Net GHG emissions are calculated by adding the emissions released during land clearing, crop production and crop processing, and subtracting from these emissions the sequestration of carbon in the standing crop and in any conservation areas. Stages of activity measurement and mapping GHG assessment in the concession area of PT DIL as system boundary for the GHG calculation in PalmGHG. The GHG Calculation stages are divided into input, output agricultural and mill. This emission sources included in the calculator are : i) Land clearing; ii) Manufacture of fertilisers and transport to the plantation; iii) Nitrous oxide and carbon dioxide resulting from the field application of fertilisers and mill by-products and other organic sources such as palm litter;

iv) Fossil fuel used in the field and at the mill ; v) Methane produced from palm oil mill effluent (POME); and vi) Carbon dioxide and nitrous oxide generated by the cultivation of peat soils.

In addition, the following GHG fixation and credits are considered: i) Carbon dioxide fixed by oil palm trees, ground cover and carbon sequestered in plantation litter (see crop sequestration, below); ii) Carbon dioxide fixed by biomass in conservation areas; iii) GHG emissions avoided by the selling of mill energy by-products (e.g. electricity sold to the grid; palm kernel shell sold to industrial furnaces).

Figure 2. System Boundary of Palm GHG

1.3 Responsible team for developing mitigation plan Monitoring management of HCV and SIA PT. DIL in region base, controled by Plantation Head of PT. DIL along with relevant functional departments. Estate planning process synergize with program planning and management of Carbon Stock and GHG Assessment . The department which involved in management plan and implementation are figured below.

2. Summary of Carbon Stock Assessment 2.1 Location Map and Landscape 1. Location Map

Figure 3. Location Map of PT. DIL

Administratively, oil palm plantation area of PT. DIL is located in two (2) districts and 3 (three) villages, The Districts of East Tanjung Palas (Tanjung Agung and Sajau Village) and The Districts of Tanjung Selor (Jelarai Selor Village), Bulungan District, North Kalimantan Province

2. Landscape Map

Figure 4. Landscape Map presence protected forest and conservation forest around PT. DIL

Based on review of document/ report/ existing/ maps and field observation indicate the around concession PT. DIL there is no area of protected forest and conservation area.

3. Area of new planting and time plan for new planting

Figure 5 . Area of PT. DIL New Planting on 2016

2.2 Land Cover Stratification Implementation of carbon stock assessment in the concession area of PT DIL using a methods that have been scientifically recognized and guidelines are based on international standards (IPCC), the RSPO and national (SNI). Footage plot consists of 4 strata of vegetation, namely HS(secondary forest), BT (old shrub) and BM (young shrub), and BC (Bush). The amount of carbon in the scale of this plot into a parameter extrapolation (Upscaling) to map the distribution of spare carbon on a scale concession area of PT DIL, mainly sourced from biomass.

Extrapolation carbon stocks for concession area of PT DIL use the resulting equation of correlation between the value of the biomass AGB in each plot with the data spectral radiance Band 6 derived from extrapolation data Landsat satellite 8. The results are then converted into the value of the biomass carbon stock and its distribution mapped. As a base mapping is the classification of biomass carbon stocks are also to describe the condition of land cover. Classification of biomass carbon stocks divides the study area into HGU PT DIL into four classes, namely: BC1 : Biomassa carbon stock <20 tones-C/ha BC2 : Biomassa carbon stock 20-40 tones -C/ha BC3: Biomassa carbon stock 40-60 tones -C/ha BC4: Biomassa carbon stock > 60 tones -C/ha

Table 1. Land cover classification in concession PT DIL, 2015 Average Carbon Stock (Tones-C) Area Tutupan Lahan (tones- (ha) BC1 BC2 BC3 BC4 Total C/ha) Secondary forest 929 10.577 28.896 80.764 121.166 1.557 77,8 Old Shrubs 2.715 16.724 24.903 48.767 93.109 1.584 58,8 Young Shrubs 4.689 12.801 6.696 8.004 32.190 1.004 32,0 Bush 965 2.769 1.728 2.376 7.838 261 30,0 Total 9.298 42.871 62.223 139.910 254.302 4.406 57,7

Ref: Field data analysis;

In areas identified as secondary forest shows that the value of the biomass carbon reserves are dominated by a range of BC4. Backup data accumulation of biomass carbon in secondary forests around 121 166 tons-C or produce on average 77.8 ton-C / ha. The result of the calculation of the value of carbon in secondary forests under the calculation results of several other references carbon accounting. Ngo Min et al (2013) to get to the secondary forest carbon stocks amounted to 126.6 tons C / ha, while Tao Lu et al (2010) found 163-258 ton-C / ha. Krisnawati et al .. 2014 produces biomass carbon reserves amounted to 108 tonnes / ha of secondary forests in dryland and 96 ton / ha of secondary forest on peat and research Waldes & Page (2002) count of 143.52 tons / ha for mixture of peat swamp forest in Central Kalimantan.

Figure 6. Map of Carbon Stock Distribution in PT. Dharma Intisawit Lestari

3. Summary of GHG emissions 3.1 Description of all areas of significant sources of GHG emisions and sequestration related to the proposed development This emission sources included in the calculator are : a. Land clearing; b. Manufacture of fertilisers and transport to the plantation; c. Nitrous oxide and carbon dioxide resulting from the field application of fertilisers and mill by-products and other organic sources such as palm litter; d. Fossil fuel used in the field (mainly for harvesting and collection of FFB); e. Fossil fuel used at the mill; f. Methane produced from palm oil mill effluent (POME); and g. Carbon dioxide and nitrous oxide generated by the cultivation of peat soils,

In addition, the following GHG fixation and credits are considered: h. Carbon dioxide fixed by oil palm trees, ground cover and carbon sequestered in plantation litter (see crop sequestration, below); i. Carbon dioxide fixed by biomass in conservation areas; j. GHG emissions avoided by the selling of mill energy by-products (e,g, electricity sold to the grid; palm kernel shell sold to industrial furnaces), Items that are not included in the budget are the nursery stage, pesticide treatments, fuel used for land clearing, emissions embedded in infrastructures and machines, and the sequestration of carbon in palm products and by-products.

4. References a. Analisis Mengenai Dampak Assessment (AMDAL) conducted of CV. Portal Consultant, East Kalimantan No, 03/660/BPDL-I/III/2010 date on March 16, 2010 b. High Conservation Value Assessment(HCVA) report conducted of Daemeter Consulting date on March 2013 c. Social Impact Assessment (SIA) report conducted of Daemeter Consulting date on March 2013 d. Land Use Change (LUC) report conducted of PT, Gagas Dinamiga Aksenta date on May 2015 e. Carbon Stock Assessment (CSA) report conducted of PT, Gagas Dinamiga Aksenta date on October 2015

5. Summary of Management and Mitigation Plans (Carbon Stocks and GHG Emissions)

5.1 Plan of the new development which indicates the carbon stock and presence of peat soil within the area to be developed and the area to be conserved

PT DIL has a total of 2,842 ha planted area in November 2015. In 2016, DIL will planting about 200 ha in the concession area. The priority land clearing are in area which have low carbon stock ( < 60 tones C/ha)

Figure 7. Map of total biomass of PT DIL

5.2 The results of scenario testing showing GHG Emissions a. Table 2. GHG Emission from land clearing on 2012 – 2015

Year of Carbon Stock GHG Emission Land Cover Acreage planting (ton C/ Ha) (ton C)

Secondary forest 80.5 77.8 6,264.68 Old Shrubs 15.1 58.8 890.00 Young shrubs 84.6 32 2,706.89 2015 Bush 2.7 30 81.75 Open Land 17.0 0 - Oil palm - 0 - Secondary forest 712.7 77.8 55,447.14 Old Shrubs 44.7 58.8 2,629.68 2014 Young shrubs 311.4 32 9,964.23 Bush 78.6 30 2,357.21

Year of Carbon Stock GHG Emission Land Cover Acreage planting (ton C/ Ha) (ton C)

Open Land 15.6 0 - Secondary forest 682.4 77.8 53,092.63 Old Shrubs 95.4 58.8 5,610.64 Young shrubs 369.5 32 11,825.35 2013 Bush 7.1 30 214.27 Open Land 99.5 0 - Oil palm - 0 - Secondary forest 24.2 77.8 1,886.61 Old Shrubs 16.4 58.8 963.00 Young shrubs 198.0 32 6,336.62 2012 Bush - 30 - Open Land 11.4 0 - Oil palm - 0 - TOTAL 160,271

Reff: CSA report conducted of PT. Gagas Dinamiga Aksenta date on April 2015

= 8.20 t CO2 e/year/ha

b. GHG Emission from fertilizer usage and N2O on 2015

= 2.75 t CO2 e/year/ha (Simplified Palm GHG C7.8 Usage-Aug 2015) c. GHG Emission from fosil fuel on 2015

= 0.21 t CO2 e/year/ha (Simplified Palm GHG C7.8 Usage-Aug 2015) d. GHG sequestration from palm oil on 2015

= - 11.11 ton CO2 e/year/Ha (Simplified Palm GHG C7.8 Usage-Aug 2015) e. Net GHG emission PT DIL on 2015

= 0.05 ton CO2 e/year/Ha

5.3. PT DIL Sscenario with Relevant Spatial Map PT. DIL has planned use of land based cadastral map which covering a total area of 7,228.9 ha and divided into two ( 2 ) own estate, are : Metun Sajau 1 (MS1) and Metun Sajau 2 (MS2). The information planning area in PT. Dharma Intisawit Lestari can be seen as below:

No Estate 2016 1 Metun Sajau 1 (MS1) 50 2 Metun Sajau 2 (MS2) 150 Total 200

Based on CSA studies conducted by PT Aksenta, then planting plan in PT DIL will be prioritized in the area of young shrubs or bushes.

5.4 The Measurement taken to maintain and enhance carbon stocks within the new development areas.

Several stages to carbon stock assessment and GHG assessment can be used to prepare a management plan carbon stock conservation area and HCV are integrated with management oil plan plantation, as follow:

(i) Determine an important area for reserve high carbon stock from biomassa equal to the average value of carbon palm plantation. The results of previous studies show that the average value of the carbon stocks of palm oil in one cycle is about 60 ton-C / ha. In the area of location permits of PT DIL are an area of 1,233 ha which has total reserves of biomass carbon> 60 ton-C / ha located in a single stretch. The area is scattered within the study area. The number of polygons many with widely varying and spread randomly would complicate management, resulting in the establishment of important areas for carbon stocks can have areas with an area that is significant (more than 10% of the area designated as a backup high carbon) and integrated with other conservation areas. (ii) Integrated carbon stock area with HCV area

Management and natural succession into areas with higher vegetation cover would increase carbon stocks in the HCV area, For areas with low carbon stocks in shrubland or open land is better used as a land bank for oil palm plantations that are managed by the best management practices can increase carbon storage reserves in the concession area of PT DIL.

(iii) Determine carbon stock baseline and benchmark mitigation GHG

The initial value (baseline) carbon stocks in the concession area of PT DIL is required to assess the success of mitigation efforts GHG (P & C 7,8 3,6 RSPO and ISPO). GHG mitigation efforts will be successful if the value is negative net emissions which means the amount of carbon stocks is greater than the emissions.

The net GHG emission value is the dynamic value where the calculation process is carried out a comparison between the amount of emissions from activities such as agricultural management (fertilization), transportation, garbage and waste as well as emissions from POME, carbon stocks are also dynamic with value can be increased or decreased. The addition of carbon stocks was obtained from the results of photosynthesis (biomass increase) of vegetation in accordance with the development and growth of plants both from the area of cultivation and conservation carbon area, While the reduction in carbon stocks can occur from land clearing activities (reduction of biomass) and aerobic decomposition, especially necromass source.

In order to determine the success of mitigation of GHG emissions, the value of carbon stocks can be used as a baseline derived from AGB, BGB, necromass and C-organic soil as a benchmark for successful management is the increase in carbon stocks derived from biomass and soil. For the carbon stocks of nekromass can not be used as a benchmark, because the value of the carbon stocks will be reduced in line with the process of decomposition, However, this decomposition process will also increase organic C in the soil.

5.5 GHG Emissions Mitigation Plan of PT DIL

The mitigation plan are associated with oil palm cultivation & processing in the new development of plantation and mill operation.

Land clearing for plantations will be prioritized in areas with low carbon stocks. The efforts to minimize GHG emissions, among others by optimizing the utilization of mill byproducts (shell, fiber, and a empty bunch), the efficient use of fuel through the engine maintenance and selection of technology which more efficient fuel usage, an accurate fertilizer recommendations, maximize the use of biological agents for pest control, increasing the density of vegetation in areas that have been designated as conservation areas, etc. methane capture and composting will be an option of mitigation GHG emission from mill.

5.6 The Plan for monitoring the implementation of selected scenario for new development including measures for enhancing carbon stock and minimising GHG emissions a. Monitoring and Evaluation of the conservation of carbon stocks (Monev) In order to determine the successful management of carbon stocks and GHG mitigation , it is necessary to the efforts of monitoring and periodic evaluation . Related to the results of this study, the efforts of monitoring and evaluation can be carried out as follows :

In order to know the successful management of carbon stocks and GHG mitigation. it is necessary to monitor and evaluate are conducted regularly. In connection with the results of this study. The efforts of monitoring and evaluation can be carried out as follows:  Establishment of permanent plots vegetation analysis in the area of carbon conservation or HCV (areas with carbon stock values> 60 ton C / ha) and in the areas planted with oil palm. Number of permanent plots is proportional to the level and extent of land cover  Perform analysis of vegetation in each of the permanent plots periodically (eg, every 6-12 months) to determine the value of biomass and its nekromassa.  Perform estimation and calculation of carbon stock every year based on the results of the above measurements.  Creating a balance of carbon each year, so that PT DIL can to know the value of net GHG emissions. b. Evaluate every form of management based on the value of the benchmark and set targets (total AGB and GHG emission).