TÜV NORD INTEGRA bvba Certification in agriculture and food Statiestraat 164 2600 Berchem – Antwerp Belgium Phone: + 32 3 287 37 60 Fax: +32 3 287 37 61 www.tuv-nord-integra.com [email protected]
RSPO P&C Surveillance assessment PUBLIC SUMMARY REPORT
PT. SOCFIN INDONESIA
Date of assessment: February 10-12, 2015 Number of ASA: (1 to 04): 01
Report prepared by: Anita masduki
Certification decision made by: TÜV NORD INTEGRA bvba
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Contents
1 Scope ...... 4 1.1 Organizational information/Contact person ...... 4 1.2 Certification details ...... 4 1.3 Identity of certification unit ...... 4 1.4 Production volume ...... 5 1.5 Description of fruit supply bases ...... 5 1.6 Date of planting and cycle ...... 8 1.6.1 Planting program for the estate as per 2015 ...... 8 1.6.2 Replanting program for each estate ...... 8 1.7 Time-bound plan ...... 9 1.8 Progress of associated smallholders or outgrowers towards compliance with relevant standards - should be in accordance to the 3 year implementation plan ...... 10 N/A as no smallholders or outgrowers associated with the company ...... 10 2 Partial certification ...... 10 2.1 General ...... 10 2.2 Requirements for time-bound plan ...... 10 2.3 Requirements for uncertified management units and/or holdings ...... 11 3 Assessment process ...... 13 3.1 Certification body ...... 13 3.2 Qualifications of the assessment team ...... 13 3.2.1 Qualification of the lead auditor: Anita Masduki ...... 13 3.2.2 Assessment team members ...... 14 3.3 Assessment methodology ...... 15 3.3.1 General overview...... 15 3.3.2 Assessment agenda ...... 15 3.4 Outline of how stakeholder consultation was managed ...... 16 3.4.1 Summary ...... 16 3.4.2 List of contacted stakeholders ...... 16 4 Assessment findings ...... 17 4.1 Summary of findings by RSPO Principle and sample of the Criteria ...... 17 4.2 Sample criteria for inclusion in this report on an annual basis during the lifetime of the certificate .... 37 4.3 Noteworthy positive components and identified non conformances ...... 37 4.3.1 Details of noteworthy positive components ...... 37 4.3.2 Status of non-conformities previously identified...... 37 4.3.3 Detail of Non Conformities identified during this ASA ...... 41 4.4 Issues raised by stakeholders ...... 58 5 RSPO Supply Chain Certification ...... 60 5.1 Finding by criteria ...... 60 5.2 Noteworthy positive components and identified non conformances ...... 63 5.2.1 Details of noteworthy positive components ...... 63 5.2.2 Detail of non conformity ...... 63 6 Certified organization’s acknowledgement of internal responsibility ...... 64
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6.1 Date of next surveillance visit ...... 64 6.2 Date of closing non-conformities ...... 64 6.3 Formal sign-off of assessment findings ...... 64
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1 Scope
1.1 Organizational information/Contact person
Principle Contact Person Mr. Hasan Bisri Kasyuri
Business address Jl. KL Yos Sudarso No.106, Medan 20115, Indonesia
Group Name (If applicable) Socfindo Group (PT. Socfin Indonesia and Socfinco SA)
Office Number +62-61-6616066
Mobile Telephone Number -
Fax +62-21 579 37504
E-mail address [email protected]; [email protected]
Web site www.socfindo.co.id
1.2 Certification details
RSPO membership number: 1-001-04-000-00
Parent company as applicable: PT Socfin Indonesia
Certificate number: 75121
Date of previous assessment April 22 – 26, 2013
Date of issue certificate 2014.05.05
Date of expiry certificate 2019.04.24
1.3 Identity of certification unit PT. Socfin Indonesia was established on December 7, 1930, based on notarial William Leo, Number 45, by officially name of PT. Socfin Medan S.A. (Societe Financiere des Caoutchoucs Medan Societe Anonyme). On June 21, 1968, by Notarial Act of Chairil Bahri Number 23 and 64, PT. Socfin Medan SA changed its name to PT. Socfin Indonesia (SOCFINDO). Sei Liput Mill (hereinafter is abbreviated as SLM) is one of PT Socfin Indonesia mill and supplied by one (1) estate, i.e. Sei Liput Estate (SLE), located approximately 131 kilometres from Medan (capital of Aceh Province) or around 3.5 hours of driving. This unit was assessed against RSPO Certification Systems, RSPO P&C Generic version 2013.
Name of Mill and Plantation Location Coordinates North East Sei Liput Mill (SLM) Jl. Medan Banda Aceh, Desa Kebun 04°13’55” 98°03’34”
Sei Liput, Kejuruan Muda, Aceh Sei Liput Estate (SLE) 04°13’55” 98°03’34” Tamiang – 24477, Aceh, Indonesia
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1.4 Production volume
Projected production Actual production Projected production from last 12 months (MT) 2014 from last year (MT) 2014 for next 12 months (MT) 2015
FFB CPO PK FFB CPO PK FFB CPO PK
70,732 17,507 2,920 68,431 16,106 2,822 72,503 17,687 3,048
1.5 Description of fruit supply bases Name of Plantation Area (Ha) FFB Production *) Total Planted (ton/year)
Sei Liput Estate (SLE) 3,841.963,787.45 3,787.45 70,732 Total FFB supplied to the mill 70,732 Name of smallholder Area (Ha) FFB Production (ton/year) Total Planted
N/A N/A N/A N/A Total FFB supplied to the mill 70,732
*) Based on production statement 2014.
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Fig. 1 Location Map Sei Liput Mill and Estate of PT Socfin Indonesia
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Fig. 2 Block Map of Sei Liput Estate
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1.6 Date of planting and cycle
1.6.1 Planting program for the estate as per 2015
Year of Total Ha Planting 1990 98.29 1991 72.07 1992 141.46 1993 106.16 1994 191.02 1995 329.01 1996 334.66 1997 348.55 1998 359.72 1999 368.07 2000 180.07 2001 160.95 2002 56.13 2003 184.19 2006 58.12 2007 65.55 2008 27.82 2009 26.65 2010 159.38 2011 134.04 2012 132.02 2013 104.29 2014 149.23 Total 3,787.45
1.6.2 Replanting program for each estate
Year of Total Ha to be replanting replanted 2016 61.76 2017 133.39 2018 103.71 2019 97.28 2020 121.04
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1.7 Time-bound plan a. Time-bound plan for mill(s)
Name of Mill Address Production in 2013 (ton/y) Certified Time-bound (year) for CPO PK certification Negeri Lama Labutan Batu Regency, North Sumatera 9,610 1,711.5 2014 2013
Province Aek Loba Aek Kuasan Sub-district, Asahan Regency, 53,204 9,387 - 2014
North Sumatera Province Tanah Gambus Lima Puluh Sub-district, Batubara Regency, 20,881.05 4,112.85 2011 2010
North Sumatera Province Bangun Bandar Dolok Masihul Sub-district, Serdang Bedagai 24,564.77 5,331.35 2011 2010
Regency, North Sumatera Province Matapao Serdang Bedagai Regency, North Sumatera 672 122 2014 2013
Province Sungai Liput Aceh Tamiang Regency, Aceh Province 17,604 2,982 2014 2013 Lae Butar Gunung Meriah Sub-district, Aceh Singkil 26,020 6,637 - 2014
Regency, Aceh Province Seunagan Seunagan Sub-district, Nagan Raya 20,105.4 3,730 - 2014
Regency, Aceh Province Seumanyam Darul Makmur Sub-ditsrict, Nagan Raya 25,620.6 4,205.7 - 2014
Regency, Aceh Province
PT. Socfin Indonesia has nine mills located in North Sumatera, South Sumatera, and Aceh Provinces. Five of the mills Tanah Gambus, Bangun Badar, Mata Pao, Negeri Lama, and Sungai Liput mills are already certified in 2011~2014. Four of them, namely Aek Loba, Seumanyam, Seunagan, and Lae Butar have been audited in 2014. Aek Loba obtained the RSPO P&C certificate in 2015 while Seumanyam, Seunagan, and Lae Butar will be certified within year 2015, most probably in 2nd semester of 2015
a. Time-bound plan for plantation(s) and smallholders
No plantations and smallholders involved in the time-bound plan as all the plantations audited and some of them certified. No smallholders involved.
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1.8 Progress of associated smallholders or outgrowers towards compliance with relevant standards - should be in accordance to the 3 year implementation plan
N/A as no smallholders or outgrowers associated with the company
2 Partial certification
2.1 General Organizations that have a majority holding* in and / or management control of more than one autonomous company growing oil palm will be permitted to certify individual management units and/or subsidiary companies only if all the following are complied with the requirements mentioned below. *Majority shareholding: the largest shareholding. Where the largest shareholdings are equal (e.g. 50/50) this applies to the organisation that has management control
Requirement Finding/ Compliance
The parent organization or one of its majority owned and / or PT. Socfin Indonesia is a member of Socfin Group. The RSPO managed subsidiaries is member of RSPO. membership number for Socfin Group is 1-0017-04-000-00 which can be found at RSPO website: http://www.rspo.org/en/member/30/socfin-group-pt-socfindo-and- socfinco-sa
For groups with complex management structures the following a. and b:. PT. Socfin Indonesia is the parent company for 9 (nine) are required: mills as mentioned above. The President Director of PT Socfin Indonesia is fully in charge and has ultimate control in the (a) A statement of the ultimate controlling shareholders and managing and operating all of the companies. He appointed directors in the managing agency company/companies. the Head of Sustainability Department, Mr. Hasan Bisri (b) Ditto in respect of each of the operating groups. Kasyhuri, to ensure all of its mills and its supply bases to get the RSPO certificate according to the time-bound plan decided (c) Application for membership by the top asset owning by the top management. company/companies. c. and d.: PT Socfin Indonesia has been a RSPO member since 2010 and received first RSPO certifcation in 2011 for Tanah (d) Application for membership by the managing agency Gambus, Bangun Badar Mill, followed by Negeri Lama, Mata company/companies Pao, Sungai Liput and Aek Loba Mill in 2014 and 2015. Three of them such as Seumanyam, Seunagan, and Lae Butar and has been audited in 2014 and awaiting for approval from RSPO secretariate.
If one of above mentioned requirements is non-compliant, this leads to a major non-conformity. The following requirements about a time bound plan (2.2) and requirements for uncertified management units and/ or holdings (2.3) are applicable, if the registered RSPO member is the holding company or one of its subsidiaries.
2.2 Requirements for time-bound plan Requirements for time-bound plan: N/A since no more certification plan for all units under PT Socfin Indonesia. All units have been audited for RSPO certification and some of them are certified. Requirement Finding/ Compliance There is a time-bound plan for certifying all its relevant entities. A challenging time-bound plan for certifying all its relevant The time-bound plan contains a list of subsidiaries, estates and entities (Relevant entities – including both the business mills. units and parent company(ies)’ commitment to RSPO, The company has used the experience obtained in the first membership status and involvement with palm oil for each assessment of another mill unit to ensure that the other subsidiary) is available. The time-bound plan should management units are conforming to the RSPO principles and contain a list of subsidiaries, estates and mills. criteria. Progress of this plan of time-bound certification has been verified. There were some changes made from the previous time bound plan due to technical conditions in each management unit.
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The updated time bound plan can be seen on page 12 (point 1.5.3) of this report.
The time scale is sufficiently challenging as it’s scheduled that all The time bound plan is appropriate (in particular, the time mills and estates will be certified by 2014. The time bound plan is scale is sufficiently challenging, taking into account appropriate, taking into account comments received from circumstances around each entity), taking into account stakeholders following the public consultation process. The public comments received from stakeholders following the public consultation has been done in each unit (mill and estate as consultation process. subsidiary). During year 2013, the only available RSPO certificates were from What is the progress of this plan since the last audit? (if Tanah Gambus and Bangun Bandar Mills. For Negeri Lama, the last audit was done by another CB, the time-bound Sungai Liput and Mata Pao Mills certificates were available in first plan shall be accepted at the moment of first acceptance semester of 2014 with detail as follows: Negeri Lama (March and only check continued appropriateness shall be 2014), Mata Pao (April 2014) and Negeri Lama (May 2014). Aek checked). Loba was certified in 2015 while Lae Butar, Seunangan and Seumayam Estates has been audited in 2014 and will be certified within year 2015, most probably in 2nd semester of 2015. Progress for this plan of time-bound certification has been Are there any revision to the time-bound plan or to the verified. There were some changes made from the previous time circumstances of the company e.g. due to bound plan due to technical conditions in each management unit acquisitions/disposals, emergence/re-emergence of land (see below). The updated time bound plan is can be seen in page disputes and/or labour conflicts? 12 (point 1.5.3).
For Aek Loba Mill a change happened to previous time bound plan If the previous question was answered with yes, the plan due to changing of CB related with accreditation process. Delayed shall be reviewed for whether it is still appropriate, such due to pre-audit for International Sustainability and Carbon that changes to the time-bound plan are permitted only Certification (ISCC) happened at Mata Pao Mill. For Sungai Liput where the organisation can demonstrate that they are Mill delay happened due to change of mill supply change scheme justified. The requirements will also apply to any newly from Mass Balance into Segregation as requested by Socfin acquired subsidiary from the moment that the company is Indonesia. legally registered with the local notary or chamber of commerce (or equivalent).
Where there are isolated lapses in implementation of a time-bound plan, a minor non-compliance is raised. Where there is evidence of systematic failure to proceed with implementation of the plan, a major non-compliance is raised.
2.3 Requirements for uncertified management units and/or holdings As mentioned above PT. Socfin Indonesia has nine mills located in Aceh , South Sumatera, and Aceh Province. Five of the mills such as Tanah Gambus, Bangun Badar, Negeri Lama, Mata Pao, and Sungai Liput mills has been certified in 2011~2014. Four of them such as Aek Loba, Seumanyam, Seunagan, and Lae Butar and has been audited in 2014 and 3 of them are awaiting for approval from RSPO secretariate. Aek Loba was certified in 2015. There was no smallholders nor outgrowers associated with the company, therefore no uncertified management units more.
Requirement Finding/ Compliance No replacement of primary forest or any area identified as Assessment about land clearing, land conflicts and potential containing High Conservation Values (HCVs) or required to labour dispute has been conducted in 2012 for the uncertified maintain or enhance HCVs in accordance with RSPO criterion management units. 7.3. Any new plantings since January 1st 2010 must comply with The results of the assessments mentioned that there were no the RSPO New Plantings Procedure. new plantings since January 1st, 2010 and there was no replacement of primary forest or any area considered as HCV or required to maintain since November 2005. Land conflicts, if any, are being resolved through a mutually Socfindo has established a procedure for identification and agreed process, e.g. RSPO Grievance procedure or Dispute calculation of fair compensation for land, called “Prosedur Settlement Facility, in accordance with RSPO criteria 6.4, 7.5. Identifikasi dan Perhitungan Kompensasi Lahan No. and 7.6. SOC/PSM/9.05, Ed. 01, Rev. 00, dated Jan 1, 2010”, supported with “Land Acquisition Procedure No. SOC/PSM/9.04”. These procedures covered an identification of reserved land for plantation development, identification of the land lord, conflict resolution, and land compensation. Auditor has checked and verified the SIA reports and found that no land conflicts are recorded. If there is any land conflict, Socfin will follow such mentioned procedures accordingly.
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Having interviewed Socfin Head of Sustainability, Mr. Hasan Bisri, that all local people’s land hasbeen identified and the land acquisition resolution happened with free prior and informed consent (FPIC).
Labour disputes, if any, are being resolved through a mutually No disputes found for labour issue. It is verified to employees agreed process, in accordance with RSPO criterion 6.3. during visit to site and though SEIA reports available.
Legal non-compliance, if any, are they being resolved in No legal non-compliance found which is verified during local accordance with the legal requirements, with reference to RSPO stakeholder interview, site verification by audit team and SEIA criteria 2.1 and 2.2. reports of uncertified management units checked.
SOC/PSM/9.01, Rev.03 issued date June 1st 2014 which is supported by a “Request Information or Consultation Form” (SOC/Form/9.01-01), logbook information record and community aspiration record as the tool should any legal non-compliance occur.
Assessment of above mentioned requirements is based on the following approach: Positive assurance statement, which is based upon self-assessment (i.e. internal audit) by the organisation. This would require evidence of the self-assessment against each requirement. Targeted stakeholder consultation may be carried out by the certification body. If this has already been conducted by a certification body, other certification bodies may request the summary report through the organisation. If necessary, the certification body may decide on further stakeholder consultation or field inspection, assessing the risk of any non-compliance with the requirements. For the requirements mentioned in the section, the approach to defining major and minor non-compliance can be applied from the relevant national interpretation. For example, if a non-compliance against a ‘major indicator’ in a non-certified holding/management unit is identified, the current certification assessment cannot proceed to a successful conclusion until that is addressed. Failure to address any of the requirements may lead to certification suspension(s) (consistent with the RSPO Certification Systems document rules on non-compliance).
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3 Assessment process
3.1 Certification body TÜV NORD INTEGRA is a certification and inspection body which operates in agriculture and horticulture and the food and feed processing industry. TÜV NORD INTEGRA offers all certification schemes with an added value in the agriculture and food industry, the legal systems as well as the private systems. TÜV NORD INTEGRA is active in Belgium but also in a large number of other countries all over the world. TÜV NORD INTEGRA is member of the internationally operating German inspection and certification organisation TÜV NORD. TÜV NORD INTEGRA is accredited by ASI for RSPO P&C and RSPO SCC. TÜV NORD INTEGRA is accredited by the Belgian accreditation body BELAC for the standard ISO 17020 for inspection organisations (Certificate Number 103-INSP). for the standard EN 45011 for product certification (Certificate Number 103-PROD). for the standard ISO 17021 for certification of quality systems (Certificate Number 103-QMS).
3.2 Qualifications of the assessment team
3.2.1 Qualification of the lead auditor: Anita Masduki Requirement Qualifications Compliance Yes A minimum of post high Chemical Engineer, Bandung Institute of Technology-Indonesia, passed 1987 school (post secondary school) training in either Diploma of Biological Treatment Management, Hiroshima University-Japan, 1991-1992 agriculture/forestry, Diploma of Environmental Management, Institute of Environmental Management and environmental science or Assessment, London- United Kingdom, 1999 social sciences; Magister of Education Management, Ibnu Khaldun University, Bogor-Indonesia, 2007- 2009 Yes At least 5 years professional 1992-1995: Assessment of the environmental impact for several industries of pulp and experience in area of work paper, wood product, pharmacy, at Java, Sumatera, and Kalimantan relevant to the assessment (e.g., palm oil management; 1996:Cleaner Production Division for GTZ-Germany and Environmental Impact Control agriculture/forestry; ecology; Agency - Indonesia) and Swiss Contact; responsible for research and develop program social science); to integrate cleaner production in the strategic planning of industrial development program, including identifying candidates for implementing cleaner production program in Indonesia. The project include of information dissemination, assist on pilot projects, develop guidance manual for cleaner production integration, develop cleaner production training workshops, deliver training for trainer, etc. This project based on social services provided by GTZ-Germany and Environmental Impact Control Agency of Indonesia as Awareness for Indonesian Cleaner Production Program. 1997- 1998:Global Climate Division of State Ministry of Environment, Jakarta and World Bank – Washington; responsible for preparing Investment Project Proposal for Ozone Depleting Substances Phaseout in Indonesia to be granted by Montreal Protocol Multilateral Fund through World Bank. This project focused on research in identifying industries as candidates for investment project. The project covered dissemination of information, assist on pilot projects, develop guidance manual for cleaner production integration, develop investment project proposal, delivered training, workshops for trainer, public training, etc. 1998:-2015 Audit and consultancy experiences for more than 80 companies for ISO 9001, ISO 14001, OHSAS 18001, SA 8000, since 1996 up to 2011 in wide range of audit scope, such as estates, oil and gas, pulp and paper, electronic manufacturing, school and university, contractors, etc. Yes Training in the practical Certified RSPO Lead Auditor Training by Wild Asia, May 2011, Kuala Lumpur, Malaysia application of the RSPO criteria, and RSPO Workshop on Indonesia Sustainable Palm Oil, February 2012, Indonesia Palm Oil certification systems; Community, Jakarta-Indonesia ISPO Lead Auditor Training, May 2013, Jakarta-Indonesia CB Exchange on RSPO, February 2014, Jogyakarta –Indonesia
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Requirement Qualifications Compliance RSPO’s Supply Chain Training, Jakarta, January 19-20, 2015 Yes Successfully completion of an ISO 9001:2000 Advanced Lead Auditor Training Course, by SGS International ISO 9000:19011 lead Certification Services, 2002, Jakarta-Indonesia assessors course; Certified Auditor Training of Environmental Management System (ISO 14001:1996) EARA -RIET - REDECON Jakarta Occupational Safety and Health Audit Scheme (OSHAS) 18001, SGS-Jakarta 2002 Yes A supervised period of Having more than 15 days of audit in more than palm oil companies (Feb 2011 – Jan training in practical 2015) assessment against the 1. RSPO PNC Auditor for Certification and Surveillance Audit of Mill and Estates RSPO criteria or similar London Sumatera Musi Banyuasin, Palembang-Indonesia, 2011-2015 sustainability standards, with 2. RSPO PNC Auditor for Certification and Surveillance of Salim Ivomas Perkasa Mill a minimum of 15 days and Estate, Aceh-Indonesia, 2011~2015 assessment experience and 3. RSPO Supply Chain Lead Auditor for Main Audit of Wilmar Group, 2 mills and 2 at least 3 assessments at different organisations. refineries, Sumatera and Kalimantan-Indonesia, May 23-25,June 13-17, 2011 (7 days) 4. RSPO PNC Certification and Surveillance Auditor for Tapian Nadenggan-SMART Group, 2011~2015 5. RSPO PNC Certification and Surveillance of PT SOCFIN INDONESIA 6. RSPO PNC Lead Audit for Main Audit of Inti Indosawit Plasma Estates, Site SOCFIN INDONESIA Sei Liput and Tungkal Ulu-Indonesia, Sep 12-14, 2011 (3 days) 7. RSPO Supply Chain Lead Auditor for Main Audit of Dr. Oetker Foods Industry, Oerlinghosen-Germany, November 7-11, 2011 (5 days) 8. RSPO PNC Certification and Surveillance of Austindo Nusantara Jaya Agri Mill and Estates, Site Binanga, Aceh -Indonesia, 2-122~2014 9. RSPO PNC Lead Auditor for Pre Audit of ATSA Thailand, Feb 8-9, 2012 (2 days) and June 2012 (6 days) 10. RSPO PNC Certification and Surveillance of Perkebunan Nusantara !V Mill and Estates, Aceh -Indonesia, 2012~2014 11. RSPO Supply Chain Lead Auditor Cerrtification Audit of Lam Soon Thailand, March 13-15, 2012 (5 days) 12. Lead Auditor for RSPO New Planting Procedure of First Resources Group, PT Borneo Persada Energy Jaya and Citra Agro Kencana, Indonesia, May, 2012 (4 days) 13. RSPO PNC Lead Auditor for Surveillance Audit of PT Sahabat Mewah Sejahtera Mill and Estates, Belitung Island -Indonesia, 2012~2014 14. Lead Auditor for RSPO New Planting Procedure of First Resources Group, PT Borneo Surya Mining Jaya and Maha Katya Bersama, Indonesia, September, 2012 (4 days) 15. ISPO Aneka Inti Persada - Minamas Siak Pekanbaru, October 18-23, 2013
3.2.2 Assessment team members Requirement Assessor Qualification Compliance
Field working experience in the palm oil sector, or demonstrable equivalent. Anita Masduki (AM) Performed more than 15 RSPO P&C audits since 2011
Wieke Savitri (WS) Performed more than 30 RSPO P&C audits since 2010 Good Agricultural Practices (GAP), and Integrated Pest Management (IPM), pesticide Wieke Savitri (WS) Bachelor degree from Agricultural Yes and fertilizer use. Faculty, Bogor Agricultural University. Health and safety auditing on the farm and in processing facilities, for example OHSAS Anita Masduki (AM) Training: Occupational Safety and Health Yes 18001 or Occupational, Health & Safety Audit Scheme (OSHAS) 18001, Jakarta Assurance System. 2002; Audit experience as auditor OHSAS 18001 until now (without accreditation) for local companies
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Requirement Assessor Qualification Compliance
Worker welfare issues and social auditing experience, for example with SA8000 or Adi Firmansyah (AF) Degree in Agriculture Social Economic Yes related social or ethical accountability codes. Sciences from Bogor Agricultural University, Master of Planning and Public Policy, Faculty of Economics (2003 - 2005). Has been working as a lecturer in Agriculture Social Economy Department, Bogor Agricultural University. Involved in various social projects.
Participated in more than 5 RSPO audits. Performed social impact assessments. Environmental and ecological auditing, for example experience with organic agriculture, Anita Masduki Diploma Environmental Management and Yes ISO 14001 or Environmental Management internal auditor training on ISO14001. Systems (EMS). Between 1989 and 2004 she worked as Study Team leader for Environmental Impacts Analysis. Since 1997 she is an ISO 14001 auditor Fluency in the main languages relevant to the location where the specific assessment is Anita Masduki Indonesian nationality Yes taking place, including the languages of any potentially affected parties such as local Wieke Savitri (WS) Indonesian nationality communities.
3.3 Assessment methodology
3.3.1 General overview The assessment was carried out following the TÜV NORD Integra RSPO P&C Certification Procedure. During the assessment the assessors use the RSPO standard as endorsed for the country in which the assessment took place and recorded their findings.
3.3.2 Assessment agenda Table 3-1 Audit Schedule Focus/ Standard Auditor Date/ Time Subject Contact Requirement/ Chapter (Initials) Travelling from Jakarta to site Monday Opening Meeting: 09.02.2015 Confirmation Audit Schedule Tuesday Day One at Sei Liput Estate (2MD) 10.02.2015 08:00 - 12:00 at Sei Liput Estate: AM, AF RSPO team PNC and verification of GAP, Soil Mgt, Erosion Control, Water Mgt, previous NC IPM, Agrochemical, Safety, Training - 4.1, 4.7,4.8 HCV, Burning issues, New Planting - 5.1- 6.5, 6.7, 6.9, 6.12, Wages, child worker, harrasment, human 6.13 trafficking, human rights at Sei Liput Estate: RSPO team PNC and verification of GAP, Soil Mgt, Erosion Control, Water Mgt, WS previous NC IPM, Agrochemical, - 4.1 ~4.6 HCV, Burning issues, New Planting - 5.2, 5.5, 7 13:00 - 16:00 at Sei Liput Estate:PNC WS RSPO team (cont’d) GAP, Soil Mgt, Erosion Control, Water Mgt, - 4.1 ~4.6 IPM, Agrochemical, - 5.5, 7 Burning issues, New Planting 13:00 - 1700 Public Consultation - 1.1 -1.3 Transparency, Requests of info and AM, AF RSPO team - 2.3 responses, Land-use right, customary right,
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Focus/ Standard Auditor Date/ Time Subject Contact Requirement/ Chapter (Initials) - 6.1, 6.2, 6.3, 6.4, 6.6, 6.10, FPIC HCV, SIA, transparancy, 6.11 complaints/dispute, compensation of loss of customary rights, business transparency, local development Wednesday Day Two at Sei Liput Mill (1 MD) 11.02.2015 08.00 – 16.00 at Sei Liput Mill:PNC AM RSPO team - Production - Description of supply base Ops.Control, Safety, Training - 4.1, 4.7, 4.8 EIA, Waste management, Renewable - 5.1, 5.3, 5.4, 5.6 Energy, Emission Control, GHG Thursday Day Three at Sei Liput Mill (1MD) 12.02.2015 08.00 – 15.00 at Sei Liput Mill:Supply AM, WS RSPO team Chain Documented Procedure - 1.1 ~1.2 Purchasing n Goods in - 2.1~ 2.3 Record Keeping - 3.1~3.8 Sales n Good out - 4.1 Training, Claims, Complaints - 6.1, 7.1, - 8.1
Friday Auditor Review AM, WS RSPO team 13.02.2015 16:00 - 17:00 Closing Meeting AM, WS RSPO team Saturday Traveling from site to Jakarta 14.02.2015 Number of assessors participating: <2> Number of days spent for the assessment on site: <3.00> Total number of person days used for the assessment on site: <4.00>
3.4 Outline of how stakeholder consultation was managed
3.4.1 Summary As part of the document review, the audit team reviewed the list of local stakeholders provided by PT. Socfin Indonesia. Based on the updated list of stakeholder of the end of 2014, during the assessment the audit team conducted for a public consultation with stakeholder on February 10,2015. The audit team picked up the name from the stakeholder list and asked the company to invite them to the meeting. Public consultation meeting was held at Training Center Sei Liput Office. Auditor distributed questionnaire to participants and attendees filled and returned it back to auditor after the meeting. The questionnaire was mostly familiar with the participants since this was not the first time for them attend the meeting. Below are the questions asked in the questionnaire. Legal status of the company and free prior inform consent Plans and impact assessments relating to environmental and social impacts Positive and negative impact of company activities to the community Environmental protection and biodiversity conservation (HCV) Pollution prevention and reduction plans Details of complaints, grievances, and negotiation procedures procedure Community Social Responsibilty Program Participation in decision making Gender discrimination, human traficking, children labour, and human rights policy
3.4.2 List of contacted stakeholders Public consultation meeting was held at Training Center Sei Liput Office and below is the stakeholder list. Table 3.1 List of Stakeholder surrounding Sei Liput Unit No. Institution A Internal
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No. Institution 1 SPSI Sei Liput (Labor Union) 2 Gender Committee Sei Liput B External 1 Disnaker Aceh Tamiang Regency ( Labor Dept)
2 Bapedalda Aceh Tamiang Regency (Environmental Agency)
3 Dinas Pertanian dan Perkebunan Aceh Tamiang Regency (Agriculture Dept.)
4 Dinas Pertambangan dan Energi Aceh Tamiang Regency (Mining & Energy Dept.)
5 Dinas Pertanahan/BPN Aceh Tamiang Regency (Agraria/ Land Dept)
6 Camat Bilah Hilir Dictrict
7 Danramil (Military)
8 Polsek Bilah Hilir (Police)
9 Masyarakat Desa Perkebunan Sei Liput (Local Community )
10 Masyarakat Desa Sei Liput (Local Community)
4 Assessment findings
4.1 Summary of findings by RSPO Principle and sample of the Criteria The assessment team conducted a thorough assessment of each principle and some example criteria. Over the 5 year period of the life of the certificate, there will be 4 annual surveillance audits in which different criteria will be assessed. Evidences were sought for conformity with the RSPO NI of both systems and their implementation. The summary of the assessment can be seen below, where “Findings/Comments” column reflects the findings in accordance with each criteria and indicator or evidences that were, and when non conformity was found, a summary of the non-conformity can be found in 4.2.2.
FINDINGS/COMMENTS COMPLIANCE
Principle 1: Commitment to transparency
Criterion 1.1 (C.1.1) Growers and millers provide adequate information to relevant stakeholders on environmental, social and legal issues relevant to RSPO Criteria, in appropriate languages and forms to allow for effective participation in decision making. PT Socfin Indonesia Sei Liput mill and estate still maintain the procedure to provide adequate information to relevant stakeholders on environmental, social and legal issues relevant to RSPO and how to respond to the request of information. Yes The procedure is SOC/PSM/9.01, Rev.01 dated April 1, 2011 which is supported by a “Request Information or Consultation Form” (SOC/Form/9.01-01). This procedure mentioned the mechanism how the company would provide adequate information relevant to RSPO Criteria upon request to relevant stakeholders for effective participation in decision making such as environmental, social and legal issues. The information shared to stakeholders was about RSPO; legal status of the company and free prior inform consent; plans and impact assessments relating to environmental and social impacts; positive and negative impact of company activities to the community; environmental protection and biodiversity conservation (HCV); pollution prevention and reduction plans; details of complaints, grievances and negotiation procedures; community social responsibility program; no gender discrimination, no human traficking, no children labor and human right policy.
This procedure was communicated to the stakeholders during thestakeholder meeting last year on September 18, 2014. In the meeting PT Socfin Indonesia informed them about the above issues in order to take a participation as well as their rights and responsibilities. The auditor checked on the minutes of meeting and noted that stakeholders received this information appropriately. Records of the meeting were kept well in Risalah Pertemuan dengann Stakeholder (Minutes of Stakeholder
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Meeting) (Indicator 1.1.1)
PT Socfin Indonesia keeps the records of requests on information and assistantance/donation from related parties as well as its responses in the form Rekaman Penerimaan Informasi dan Tanggapan Stakeholder (Record of Information Request and Responses). The records contain information of references of letter, date, name, organization/institution, information/donation/assistance requested, action taken to the request, person in charge whom follows up and status of the request. For the sample, in October 2014 there was a proposal of renovation of school and road in Bilah Hillir District. The company granted the proposal and execute the renovation in January 2015. The evidence of renovation was available and seen during the audit.The auditor observed that Socfin Indonesia has mechanism to respond to requests for information/ assistance/ donation. The requests for information/assistance/donation were properly handled. It was also observed that all records were well maintained. Socfin Indonesia has a procedure to maintain all records through Prosedur Pengendalian Rekaman (Procedure of Record’s Control), SOC-PSM/4.03/ Rev.02/ 1 January 2011 and the records was kept for five (5) years period in Master List of Records (SOC/Form/4.03-01). (Indicator 1.1.2) Criterion 1.2 (C.1.2) Management documents are publicly available, except where these are prevented by commercial confidentiality or where disclosure of information would result in negative environmental or social outcomes PT Socfin Indonesia Sei Liput mill and estatestill maintain a policy of no objection for documents to be made publicly available, such as legal, social, environmental documents and current/past FFB prices. The exception applies only to Yes confidential and related commercial documents which are not publicly available, such as operational and financial statements, labor data and dispute document. These documents are available upon request and approved by the company. The mechanism of handling the requests of public documents is mentioned in “Social Communication Procedure” (SOC/PSM/9.01)/ Rev.01/April 1, 2011). All letters of request on information and its reponds were recorded in the same form as above, in form Rekaman Penerimaan Informasi dan Tanggapan Stakeholder (Record of Information Request and Responses). The auditor team has verified that according to the procedure SOC/PSM/9.01)/ Rev.01/April 1, 2011, these documents were available for public view upon request, such as: Izin Lokasi, Izin Usaha Perkebunan, Hak Guna Usaha/HGU (Location Permit, Plantation Operation Permit Land Use Rights or HGU) The Health and Safety Policy, Manual, and Program AMDAL, UKL-UPL, Social Impact Assessment (Environmental and Social impact assessment) Pollution Prevention Program Laporan Pemantauan RKL/RPL (Regular Environmental Management and Monitoring Reports). Identifikasi HCV (HCV identification), Business Ethics and Code of Conduct policy Complaints and grievances resolve procedure Compensation, claims, and negotiation mechanism Public summary of certification assessment report Human Rights Policy Continuous improvement plan in the term of sustainable development The auditor team found that the content of these documents are adequate and during public consultation with the stakeholders on September 18, 2014, the auditor team noted and confirmed that the above documents are available for public disclosure. (Indicator 1.2.1)
Criterion 1.3 (C.1.3) Growers and millers commit to ethical conduct in all business operations and transactions. PT Socfin Indonesia has a commitment to a code of ethical conduct and integrity in all operations and transactions through an Ethical Conduct Policy No. SOC/DP/4.01-64 dated on June 01, 2014. The Sustainability Departement is in charge as Yes community relation officer. Through this policy the company is committed to respect for fair conduct of business, prohibition of all forms of corruption, bribery and fraudulent use of funds and resources and a proper disclosure of information in accordance with applicable regulations and accepted industry practices, at all levels of operation and contracted third parties . This procedure has been communicated to all levels of the worker during management meeting in November 05, 2014 and also to the relevant stakeholders during the stakeholder meeting. Through interview with the workers and discussion with the stakeholders in the stakeholder meeting, auditor team noted that both parties understood well the procedure. Through the data verification of their operational and financial internal audit report the auditor team noted that during January-December 2014 there was no form of corruption found. (Indicator 1.3.1)
Principle 2: Compliance with applicable laws and regulations
Criterion 2.1 (C.2.1) There is compliance with all applicable local, national and ratified international laws and regulations
The company has maintained a copy of all licenses both in hard and soft files. An overview of Evaluation of Compliance with Laws and Regulations is mentioned below (Indicator 2.1.1 and 2.1.2) No
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No Law and Regulation Implementation by the company Compliance 1 Law No. 5 /1960 The company hold the land rights (Hak Guna Yes re: Land Legacy and Government Usaha/HGU) as follow Regulation No.16/ 2004 Certificate of Land Right/ Area (Ha) valid until re: Land Management HGU - SK BPN No. 285.65 1-Jan-2024 SK.128/HGU/BPN/97 - Cert HGU No 112/1998 - SK BPN No. 1,998.53 1-Jan-2024 SK.140/HGU/BPN/97 - Cert HGU No 115/1998 - SK BPN No. 810.40 1-Jan-2024 SK.145/HGU/BPN/97 - Cert HGU No 116/1998
- SK BPN No. 336.85 1-Jan-2024 SK.127/HGU/BPN/97 - Cert HGU No 111/1998 - SK BPN No. 354.40 1-Jan-2024 SK.130/HGU/BPN/97 - Cert HGU No 113/1998 - SK BPN No. 56.13 1-Jan-2024 SK.130/HGU/BPN/97 - Cert HGU No 114/1998 Total HGU 3,841.96
2 Law No. 18 / 2004 The company hold plantation permit (IUP/Ijin Usaha Yes re: PLantation Perkebunan) for area : 3,841.96 Ha, IUP/SPUP No. 350/830/DJ.Bun.5/XI/2001
3 Law No. 41/ 1999 The company has prepared the Identification and Monitoring of Yes re:Forestry High Conservation Values (HCV) Report and provide the procedure No. SOC/PSM/9.06 of Monitoring of High Conservation Values (HCV) 4 Ministry of Agriculture Decree Head of the Department of Plantation, North Sumatra Province has Yes No.17/Permentan/ OT.14/2010 re: assessed the company and got a Plantation Category Class No. II Guidelines for Assessment of Plantation Business 5 Guidelines for Determination of N/A Since no FFB from outgrower N/A FFB Price 6 Law No. 32/ 2009 re: Fundamental The Company has implemented the Law into the SOP / Yes Rules on Environmental Protection Procedure concerning: - Land Clearing with Zero Burning (Kebijakan Etika Rev 03, 1 Jan 2014 - Marginal Land Management (SOP No. SOC/PSM/7.10-14 - Soil and Water Conservation (SOP No.SOC-KB/IK/06; SOC/PSM/7.10-14) - Management of High Conservation Values and Border River (SOP No SOC/PSM/9.07
- Peat Land Management ( OC-KB/IK/08) 7 Government Regulation No. The Company has obtained approval of EIA from the Yes 27/1999 Ministry of Agriculture No. No. RC 220/475/B/III/1994, re: Environmental Impact dated on 17/03/1994 Assessment/EIA or AMDAL 8 Government Regulation The Company has conducted air pollution control and emission Yes No.41/1999 re: Emission control periodically every six month at mill. Last measurement Control dated on December 2014. Ministry of Environmental Decree re: Standard Limit for Boiler (Permen LH No. 07/2007 re: Baku Mutu Emisi Sumber Tidak Bergerak Bagi Ketel Uap) Ministry of Labor Decree re: Physical Standard Limit for Working Area (Kepmenaker 51/1999 re: NAB Fisika di tempat Kerja) 9 Government Regulation No. Safety Instructions Management of Chemicals (SOP- No: Yes 74/ 2001 SOC/PSM/4.10 re: Management of Hazardous Pesticides and management is (SOP- No. SOC/PSM/4.10 Substance Weed Control (SOP No. SOC/PSM/7.10-13 Integrated Pest Management (SOP- No. SOC/PSM/7.10-13 10 Government Regulation No. Yes 18 /1999 re:Hazardous Waste Hazardous Waste Management conducted in collaboration with Management the third party PT. Amindy barokah, hold operation permit from KLH / Environmental Agency of Kemen LH No.33 tahun 2011,
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valid until No. 21 Feb 2016 11 Yes Decree of Ministry of Hold Hazardous Storage Permit from KLH / Environmental Environmental No. 18/ 2009, re: Agency Nr. 34 tahun 2011 valid until 21/02/2016 Permit for Chemical and Hazardous Substances Storage 12 Decree of Enviromental Ministry Technical Guidelines for Assessment and Licensing Procedures N/A No. 28 and 29/ 2003 for Land Application of palm oil mill effluent (POME) Re: Land Application Permit of palm oil mill effluent (POME), 13 Presidential Decree No. 71/2011 The company has not conducted the inventory and mitigation of No National Inventory and Mitigation of green house gases Green House Gases This becoming NC for PNC 5.6 14 Law No. 13/ re Labour The Company complies regarding: Yes Decree of Ministry of Labor No.1/ - Minimum Wage based on Keputusan Gubernur 1999 and Decree of Aceh Sumatera Utara (Governor Decree of Aceh ) Nr. Gevernor 188.44/981/KPTS/Tahun 2014. No188.44/997/KPTS/2013 - Prohibition of employment of children under the age re: Minimum Wage for 2014. of 18 years and ban on pregnant and lactating women to perform spraying through SOP through, Ethical Conduct Policy No. SOC/DP/4.01-64 dated on June 01, 2014 15 UU No. 1 Tahun 1970 - Boiler operators license for the staff who works at the boiler Yes Keselamatan Kerja was approved and granted by Department of Labor. The license given for staff who works at the boiler is still valid. - License of machines obtained from Ministry of Labor allowing the mill to use machines for their purpose, such as mill machines, boiler, generator set etc. 16 Decree of Directorate General The company hold permit for: No industrial Relations and Labor - Boiler operators license for the staff who works at the boiler Inspection Number: was not approved and granted by Department of Labor. KEP.311/BW/2002. 17 Law No. 21/ 2000 The company has issued the policy from the top management No. Re: Labor Union SOC/Dp/4.01-64, Revision 03, dated June 1, 2014. In this policy Yes the company allows their employee freely to perform the labor union and provides facility for the meeting. Records pf bipartite meeting between Labor Association of Sei Liput and Estate Management were available. 18 Government Decree No.3/1980 The company has implemented the goverment regulation on Yes
,No.8/1981 and Labor Decree Sistem Manajemen Keselamatan dan Management System
No.4/1993 re: Occupational Safety (OHSMS) which is mandatory obligation from the Goverment of
and Health Indonesia through Ministry of Manpower. The company has got
Certificate in 2005. The company has obligation to perform the medical check up to all high rissk worker 19 Government Decree No.8/1981 The company has implemented the Occupational Health and Yes and Labor Decree No.4/1993 re: Safety Accreditation Scheme (OHSAS) since 2013 and got the Occupational Safety and Health OHSAS certificate. 20 No Government Decree No.3/1980 re:Medical Check Up The company has obligation to perform the medical check up to all
high risk worker.
There is no evidence that the high risk worker such as operator of kernel crush have performed the regular medical check up as required by Labor Ministry Regulation No.02/1980 and the company’s procedure No SOC/PSM/4.19, which is once a year. NC under PNC 4.7 21 No Heath Ministry Regulation No. Doctor of the clinic, Dr. Gemala as well as her nurses and midwife
441/KP2TSP-KL/36/2012 do not have the licenses as required by the Heath Ministry
Regulation No. 441/KP2TSP-KL/36/2012 22 Yes Decree of MinistryThe minimum of Labor wage No.1/ as required by Decree of Aceh Gevernor No. 81/2014 at Rp 1.900.000,-/
1999 and Decree of Aceh month. The company has issued the memorandum from Human
Governor Resource Director No. UM/KK/Bi/557/15. In this memorandum,
No188.44/997/KPTS/2013 the minimum wage for 2014 was Rp. 2.061.500
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re: Minimum Wage for 2014. The organization still maintain mechanism to ensure compliance with all applicable laws and regulations through procedure “Identification and Evaluation of Law and Regulation related to Environmental and OHS Procedure Prosedur” (SOC/ PSM/4.05/Rev.04/ January 1, 2011) (Indicator 2.1.2). Implementation of this procedure was followed up by providing an “Identification and Evaluation Form of OHS Law and Regulation” (SOC/Form/4.06-01) (Indicator 2.1.3). Regulation List is made by Head Quarter and updated regularly within 12 month interval. The company review all their activities and check the applicable regulation in the list to ensure that the list of regulation still applicable and to see weather any new regulation related to the activities. (Indicator 2.1.4). Regarding the regulation compliance, the auditor team found that the doctor of the clinic, Dr. Gemala as well as her nurses and midwife do not have the licenses as required by the Heath Ministry Regulation No. 441/KP2TSP-KL/36/2012. The auditor team issued the non conformity report, NC#1. This NC of point 2.1.1 is re-occurance from last audit, although with difference case. Last case was that not all dump truck drivers have OHS license as per required in Manpower and Transmigration Ministry Regulation No. 9/2010. The company has not made the corrective action plan effectively by evaluating all the regulation compliance effectively. Criterion 2.2 (C.2.2) The right to use the land is demonstrated, and is not legitimately contested by local people who can demonstrate that they have legal, customary or user rights.
PT Socfin Indonesia Sei Liput mill and estate has a list of Land Use Title (Hak Guna Usahan/HGU) were recorded in file Yes Perijinan PT. Socfin Indonesia. The company holds the land rights (Hak Guna Usaha/ HGU) and the plantation permit for the area of 3,841.96 Ha as mentioned above (Indicator 2.2.1) To prevent the land from any undesirable action, the company conducts boundary monitoring at several places which are demarcated by pillars. The monthly monitoring records from January to December 2014 were available and consisted of a list and photographs of boundary stones. The company has maintained the boundary stones properly. The legal status of boundary stones was approved by Badan Pertanahan Nasional (National Land Body). (Indicator 2.2.2) PT Socfin Indonesia has etablished a mechanism for the resolution of conflicts and disputes through Handling of Social Conflict Procedure No. SOC/PSM/9.02/Rev.01 dated Oct 01, 2010. This procedure mentioned how the company to solve the problem if any conflict should occur both internal and external conflict. This procedure also mentioned that if the problem can not be resolved by negotiation, the company will take legal action involving related institutions. This procedure has been communicated to the stakeholders during the stakeholder meeting and public consultation. By checking to the relevant documents such as minutes of meeting of stakeholder meeting and during the public consultation the auditor team noted there was no land conflict found at the estate. (Indicators 2.2.3 - 2.2.6).
Criterion 2.3 (C.2.3) Use of the land for oil palm does not diminish the legal, customary or user rights of other users without their free, prior and informed consent.
It was confirmed during surveillance assessment as well as during public consultation with stakeholders that there was no Yes customary right of other users.
Principle 3: Commitment to long-term economic and financial viability
Criterion 3.1 (C.3.1) There is an implemented management plan that aims to achieve long-term economic and financial viability
The company has committed to economic and financial sustainability and has documented the working plan in the Financial Yes Budget Plan for Sei Liput Mill Sei Liput Estate. The financial budget plan includes production of FFB (tonnage); FFB/ ha (yield); OER of CPO and PK. The budget plan has considered some parameters such as inflation rate, exchange rate, interest rate, portion cash, dividend, non deductible expensive, working hours, and turnover. During the projection period the mill capacity is 12 ton FFB/ hour and there are no plans to increase the mill capacity or to increase the planted area. The budget plan covers a 3 years period 2015~2017. All FFB come from SIMP owned estates. PT Socfindo Sei Liput has prepared annual budget plan as outlined in the three-years financial projections for 2015-2017, as below:
Indicator 2015 2016 2017
Planted area (Ha) 3,787.45 3,787.45 3,787.45
Mill capacity (ton FFB/ hour) 12 12 12
FFB from own estate (ton/year) 73,581 77,476 77,463
CPO from own estates (ton/year) 17,971 18,922 18,919
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PK own production (ton/year) 3,093 3,257 3,256
Replanting (Ha/year) - 61.76 133.39
(indicator 3.1.1) Replanting programme for Sei Liput is available and projected for 5 years and reviewed on yearly basis. First replanting already begun in 2016. See table 1.6.2 of replanting program (indicator 3.1.2)
Principle 4: Use of appropriate best practices by growers and millers
Criterion 4.1 (C.4.1) Operating procedures are appropriately documented, consistently implemented and monitored
Socfin Sei Liput has prepared the Standard Operating Procedures with the best practices for its mill and estate Yes operations. Operating procedures are documented in the SOP (Standard Operating Procedure) for Plantations and Mill. Some examples of the SOPs are listed below: (Indicator 4.1.1) 1. SOP of mill and estate Name of SOP SOC /PSM/7.10 Oil Palm Cultivation SOC/PSM/7.10-08 Making Terrace and hoof SOC/PSM/7.10-11 Integrated Pest Management: Oryctes rhinoceros SOC/PSM/7.10-11 Integrated Pest Management: Leaf eaters caterpillars SOC/PSM/7.10-12 Uprooting Ganoderma attacked trees in commercial planting. SOC-KKS/IK/13 Weed Control SOC-KKS/ik/16 FFB Transportation SOC-KKS/IK/18 Beneficial plant planting at oil palm plantation SOC-KKS/IK/20 Mechanical Fertilizing 2. SOP of mill SOC-POM/PSM/7.05 Purchasing of 3rd Party FFB SOC-POM/PSM/7.08 FFB Reception from own plantation SOC-POM/PSM/7.09 Processing Palm oil and Palm Kernel SOC-POM/PSM/7.06 Delivery of CPO by road transportation SOC-POM/PSM/7.07 Delivery of PK by road transportation 3. SOP of Environment, Health , and Safety (EHS)
SOC/PSM/4.04 Environmental Aspect and Impact Identification SOC/PSM/4.05 Identification of regulation and evaluation of its compliance SOC/PSM/4.07 Communication, Participation and Consultation. SOC/PSM/4.08 Emergency response SOC/PSM/4.09 Environmental monitoring and measurement SOC/PSM/4.10 Chemical Handling SOC/PSM/4.11 Waste Management SOC/PSM/4.12 HSE Patrol SOC/PSM/4.13 Control of Significant Aspect SOC/PSM/4.14 Accident reporting and investigation SOC/PSM/4.16 OHS Control of contractor SOC/PSM/4.19 Medical Check Up SOC/PSM/4.20 Clinic Management SOC/PSM/4.21 Control of PPE SOC/PSM/4.23 Diagnosis and occupational ill reporting SOC/PSM/4.24 Worker treatment 4. SOP of sustainability SOC/PSM/9.06 HCV Management and monitoring SOC/PSM/9.07 Management of Conservation Area SOC/PSM/9.08 Corporate Social Responsibility
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SOC/PSM/9.09 Supply Chain Certification Standard-MB SOC/PSM/9.10 Supply Chain Certification Standard-IP SOC /IK/6.04-03 Fertilizer warehouse management SOC /IK/6.04-04 Chemical warehouse management SOC /IK/6.04-05 Fuel Storage Tank Management SOC/PSM/9.01 Social communication SOC/PSM/9.02 Social complaint handling SOC/PSM/9.03 Social Impact Assessment SOC/PSM/9.04 Land Release SOC/PSM/9.05 Identification and land compensation calculation
All activities regarding the estate operation and mill were recorded in the Estate and Mill Daily and Monthly Reports. The Monthly Management Report contains: detailed FFB/CPO/PK production and expenses, fertilizer, pesticide and herbicide applications, stock balances of warehouses, operational expenses, medical expenses, and labour expenses. The implementation and operation were monitored through daily or weekly or monthly inspections. Internal Audit for Mill and Estates Operations is conducted once a year and last audit was conducted in November 5, 2014. All records are maintained properly. The auditor checked and verified some samples of record such as the daily production and monitoring reports and the auditor checked the sample of data randomly. The auditor found they were generally well implemented. (Indicator 4.1.2, 4.1.3) There is no records of the FFB from third party as company only receive the FFB from its own estate (indicator 4.1.4) Criterion 4.2 (C.4.2) Practices maintain soil fertility at, or where possible improve soil fertility to, a level that ensures optimal and sustained yield
Socfindo has developed SOP and Working Instruction to maintain soil fertility and water quality to ensure optimal and sustainable yield, for example as stated in “Prosedur Analisa Tanah (Procedure of Soil Analysis) SOC/PSM/7.10- YES 15, Prosedur Analisa Daun (Procedure of Leaf Analysis) SOC/PSM/7.10-16 and Instruksi Kerja Pemupukan (Working Instruction of Fertilization SOC/KB/IK/01”. To maintain soil fertility and improve soil structure, the company both use inorganic fertilizer and organic fertilizer and implemented good agricultural practices such as planting legume cover crops, placing frond stack on inter-row. The auditor checked that the procedures were carried out well during site visit to ensure sustainability yield, such as: implementation of inorganic and organic fertilizer, planting LCC, placing frond stacking on inter-row of palms. (Indicator 4.2.1). According to the latest “Prosedur Analisa Tanah (Procedure of Soil Analysis) SOC/PSM/7.10-15 dated on May 1, 2014”, soil sampling is conducted every 12 years on a Soil Sampling Unit (SSU) which is a block that has been defined as a block fertility monitoring. The last soil analysis in Sei Liput was taken in 2004, the next soil analysis will be conducted in 2016 t was a corrective action from the previous audit, and the auditor confirm that the corrective action was effective. . Leaf Sampling (LS) was internally done by the Agronomy Department of the Head Office according to Leaf Analysis Procedure No. SOC/PSM/7.10-1). LS is conducted on a Leaf sampling Unit (LSU) which is an area with a minimum area of 10 Ha. The LSU are taken from frond 9 on immature palms and from frond 17 on mature palms. The LSU lines are determined in every 10 rows of plants. The first LSU line for each block is started at line No.10 and then with a number multiple of 10, but for a last LSU line is set with 10 row from the last row. LSU sampling for 2015 is conducted every year at lleast 2 months after the first fertilization program is completed in 2014, usually carried out at the end of the dry season and early rainy season (usually in July), but not recommended in long dry season or rainy season with rainfall > 400 mm/ month. The analysis was done by an external laboratorium. The analysed parameters were N, P, K, Ca, Mg, Cl (%) B (ppm), Cu (ppm), Zn (ppm). The fertilizer recommendations were established by Mr. Erwanda Surya, the Head of Agronomy. (Indicator 4.2.3) The available Fertilizing Booklet Program for 2015 of Sei Liput was derived from the leaf analysis last year. The recommended application of fertilizers for 2015 consists of : Division I NPK (10-10-25) at dosage 2.00 - 2,50 kg/ palm/ year, ZA 1,25 -2,25 kg/ palm/ year, RP 1,25 – 2.00 kg/ palm/ year ; KCl 1.25 – 1.75 kg/ palm/ year; Dolomite 0.50 – 1.50 kg/ palm/ year; specific addition for Block 22 Kieserite 0.7 kg palm/ year; Borate 0.1 kg/ palm/year. Division II : NPK(10-10-25) at dosage1.50 – 2.50; Dolomite1.00 – 1.50 kg; Division III : NPK( 10-1-25) at dosage 2.00 kg; ZA 1.75 – 2.50 kg; RP 1.75 – 2.50 kg; KCl 1.25 – 2.00; Dolomite 0.50 – 1.00kg; Division IV : NPK (10-10-25) at dosage 2.00 kg/ palm/ year; ZA 1.75 – 2.00 kg/ palm/ year; RP 1.50 – 2.00 kg/ palm/ year; TSP1.5 kg/ palm/ year; KCl 1.25 -2.00 kg/ palm/ year; Dolomite 1.00 – 1.25 kg/ palm/ year; Kieserite 0.70 kg/ palm/ year; Borate 0.10 kg/ palm/ year.
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Immature : NPK (15-15-15) at dosage 1.00 – 1.50 kg/ palm/ year; ZA 0.50 - 1.25 kg/ palm/ year; Kieserite 0.35 kg/ palm/ year; Borate 0.02 – 0.05 kg/ palm/ year. Replanting: RP at dosage 7.50 kg/ palm/ year; NPK (15-15-15) 0.30 kg/palm/year. The auditor team checked that implementation of fertilizer is correct by comparing the realization of fertilizer with recommendation from Fertilizer Booklet Program in 2014. (Indicator 4.2.2). To maintain soil fertility, the company also used palm by-products such as EFB to improve the soil organic matter content and to substitute or supplement inorganic fertilizer inputs. Fronds are systematically stacked in the palm inter-rows to prevent soil erosion following pruning and after harvesting of FFB. EFB is applied as fertilizer for beneficial plant such as Cassia cobanensis and also as mulching. Immature areas were covered by LCC Mucuna bracteata and supplemented by Empty Fruit Bunch (EFB) with dosage of 20 ton/ha/year that was placed surrounding the palm and by-product decanter solid as much as 10 ton/ha that was placed on top of the EFB, while for mature palms the dosage is 45 ton/ ha only for specific areas based on specific organic fertilizer recommendations which are not included in the Fertilizing Booklet Program. Records of EFB application were available and verified (EFB with the dosage 45 ton/ ha, if area of a block is 20 ha the EFB applied is 900 tons). No POME has been applied to the estate since the production of POME is not enough for land application. (Indicator 4.2.4).
Criterion 4.3 (C.4.3) Practices to minimize and control erosion and degradation of soils
The latest soil analysis was done in 2004 by Param Agriculture Soil Surveys (M) BHD, Selangor, Malaysia. It was Yes identified that Sei Liput soil was mineral soil. Based on Indonesian Soil Classification (PPPT, 1983), there were 6 (six) types of soil in Sei Liput, i.e. Nitosol Distrik, Podsolik Haplik, Podzolik Gleiik, Alluvial Distrik, Kambisol Gleiik, and Gleisol Distrik. Socfin has prepared an Erosion Control on Marginal Soil Procedure No. SOC/PSM/7.10-12, as management strategy for plantings on slopes above a certain limit, 8% – 30% for individual terracing and 30% -40% for contour terracing. The slope of the land was dominated with slope of 0-4% (Flat, with area 1,202.27 ha or 32.2%), slope of 4-12% (Undulating, with area 1,510.96 ha or 40.6%), slope of 12-24% (Rolling, with area 726.3 or 19.5%) and slope of 24-38% (Hilly, with area of 225.5 ha or 6.1%). Auditor observed that terracing has been implemented in Sei Liput. (Indicator 4.3.2). There is no peat land and others marginal soils in Sei Liput. (N/A for Indicator 4.3.1, 4.3.4, 4.3.5 & 4.3.6).
Road maintenance program for Socfin consisted of two programs for primary road and secondary road. Road maintenance program was broken down into Division Monthly Work Plan. Auditor checked that the maintenance program was carried out based on Prosedur Perawatan Jalan/ Road Maintenance Procedure (SOC-KB-IK-07) and the realization was on the target, for primary road 6,000 m and 23,000 m for secondary road. (Indicator 4.3.3).
Criterion 4.4 (C.4.4) Practices to maintain the quality and availability of surface and ground water
Water management plan in Socfin covers the efficiency of water usage; to ensure that the use of water does not Yes result in adverse impacts; to ensure that communities and workers have access to clean water for any purpose; and to avoid contamination of surface and ground water. The implementation of water management plan included monitoring of rainfall and all water usage and discharges. for example, if the rainfall monitored yesterday > 10 mm, they will not watering palms in nursery. Water management plan was clearly defined in Water Management for Palm Oil Mill No. SOC SOC/PSM/4.22 Edisi 01 rev. 00 dated Oct 01, 2010, where the water source of each mill and estate under Socfin management has been identified (No. SOC/DP/4.22-01) along with the water distribution list (No. SOC/DP/4.22-02). The water consumption was recorded regularly in a form No. SOC/Form/4.22-01. For Sei Liput, a Water Intake Permit from Simpang Kiri River was given by Aceh Governor based on Decision Letter No. 691/BP2t/5915/2011 with maximum debit of water intake of 15 m3 per hour. Monitoring record of water consumption in Sei Liput are available. They respect the permit and pay water retribtuion tax (Indicator 4.4.1). Socfin has established company’s procedure to protect water courses and wetland so called Riparian Zone of River Management Procedure No. SOC/PSM/9.07 Ed. 1 Rev. 1 dated Aug 15, 2012, which was used as the guideline to manage conservation area of riparian buffer zone. It was stated in the procedure that to avoid soil degradation and chemicals run-off to the water body, up-keep activities are only done manually without ripping and without using agrochemicals in an area from 8 meters up to 50 meters from the both sides of the river, depending on the width of the river itself. After replanting, the oil palms along the river will be replaced by beneficial plants that can trigger the proliferation of natural predators of crop pest, easy to reproduce, low cost, resistance to shade, do not transmit disease to oil palm trees, based on references, such as:asam kandis (Garcinia) etc, for example: in Division II are 250 m . The recommended plants were listed in the procedure SOC/PSM/4.22 page 7, for example cherry (Mutingia calabura), Asam Kandis (Garcinia parviflora), Awar-awar (Ficus septica), etc. Based on the recommendation of HCV assessor (C.5.2), for river’s width of 3 to 5 meters the buffer zone shall be at least 8 meters. Clear demarcation of
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area where application of agrochemicals is prohibited was confirmed during the field visit (Indicator 4.4.2). POME was not applied to the land, thus the proposed permit was for POME Discharge Permit instead of POME for Land Application Permit. The POME standard was according to Environmental Ministry Decision No. 51/1995 appendix IV B regarding POME waste standard. Regular analysis result showed that the discharged POME to the water body was within the above mentioned standard, i.e. BOD standard: <100 ppm, pH standard: 6-9; N-Total standard: 50 mg/l; Total Suspended Solid (TSS) standard 250 mg/l. Monitoring of POME BOD was done regularly by external and internal and reported to Environmental Agency (Badan Lingkungan Hidup) every three months. Eventhough the result of POME was compliant to the standard, however to verify that there was no water pollution due to mill activity, a matrix detailing the Environmental Monitoring Plan (Rencana Pengelolaan Lingkungan/RKL Sei Liput) shall be done accordingly, i.e. river water analysis according to PP No. 81/2001. Please see Indicator 2.1. (Indicator 4.4.3). Water usage for mill operations was available and recorded as “Pemakaian Air di Pabrik (Water Usage for Mill)”. Socfindo has established standard processes for water consumption which is 0.60 m3/ton FFB processed for all mills. The range of water consumption in 2014 for Sei Liput was within the standard was 0.49 – 0.57 m3/ ton FFB processed (Indicator 4.4.4)
Criterion 4.5 (C.4.5) Pests, diseases, weeds and invasive introduced species are effectively managed using appropriate Integrated Pest Management Techniques
Socfin has established several pocedures for IPM to control pests, diseases and invasive introduced species such No as: SOC/PSM/7.10-11 for IPM of Oryctes rhinoceros, SOC/PSM/7.10-13 for IPM of Caterpillar and Bagworm Attack and new procedure established Pengendalian Hama Tikus Terpadu (Pest management rat control) SOC/PSM/7.10-21 dated on 8 May 2014 to replace circular letter No. Tan/Keb.KS/Bi/88/2005 dated May 6, 2005 for IPM of rodent. These procedures were detailing all technical aspects for each pest target, which chemical to be used, application’s time frame, etc. Annual IPM program including pest and diseases detection, census and controlling, use of pesticides was available. Census and Controlling of Bagworm Program in line with rat control program was done monthly while for Ganoderma census was done once in 4-12 months. Other than that, there was a beneficial plants planting program as well for areas surrounding HCV. Records of above mentioned programs were checked during the assessment and showed that the majority of pest that oftenly reached above the economical value limit (stated in procedures) were rat and Oryctes, but after controlling action the attack rate had dropped below the threshold (<20%). Oryctes Controlling Program was directly done by picking up the larvae with two (2) times rotation for mature oil palm and three (3) times rotation for immature oil palm, for example: Division 4 in Block 85, 100, 102, 107, 108 in October 2014 In 2014 there was an outbreak of caterpillars and bagworms attack that exceeded the critical threshold that need to be controlled by chemicals. Specific species found were Setora nitens, S. Asigna and Darna sp (nettle caterpillars), Metisa plana and Metisa corbetti (bagworms); Calliterea horsfieldi (caterpillars). The methods used for chemical application were trunk injection and high power sprayer. The control measurement for rat attack is by using rat bait Notikus and Kresnakum (active ingredient Brodifacum 0,005%). Eventhough some nest boxes had been installed, none were occupied with barn owls since 2012. Beneficial plants in Division III and IV were not well maintained, there was no planting program of beneficial plant in 2015 for areas which have nettle caterpillars attacks history during 2014, for example in Division IV Block 95, 98, 101. For this case, an NC#2 was raised. (Indicator 4.5.1).
Sei Liput provide regular internal training for their employees involved with IPM implementation, the training includes morning meeting activities for informal training, while formal training in classroom such as: Usage of Pesticide (March’2014), IPM and Hazardous Waste Management (Oct’2014) . The auditor checked the records of the training and based on interviews with workers the auditor confirmed that they are competent. (Indicator 4.5.2).
Criterion 4.6 (C.4.6) Pesticides are used in ways that do not endanger health or the environment
Agrochemicals that were used by Sei Liput estate has been registered and licensed by Agriculture Department and No listed in Pesticide Commision Book (Buku Komisi Pestisida). The list of pesticide recommendations that can be used by the estate was released by Head Agronomy Department (Kepala Bahagian Tanaman) in 2014 which detailed the name of agrochemicals, registration number, species target and recommended dosage. During the assessment, cross checking between the stock card, book of spraying and the pesticide commission book were done. For example: The Head of Agronomy did not recommend usage of Decis (active ingredient Deltrametrin) by fogging method and replaced it with more environmental friendly chemicals such as Starthene (active ingredient Acephate) and Santador (active ingredient Lambda Cyhalothrin) by HPS method or trunk injection method. Ratbait with active ingredient Warfarin also replaced by ratbait with active ingredient Brodifacoum. (Indicator 4.6.1.). Usage of agrochemicals was recorded in “Daftar Penggunaan Pestisida Sei Liput and “Toksisitas Pestisida Sei Liput”, which includes active ingredients used and their LD 50, area treated, amount of active ingredient applied per Ha, number of application, FFB production and calculation of toxicity per ton FFB. During 2014, the pesticides used in Sei Liput were:
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• Herbicides : Ally 20 WG (active ingredient Metsulfuron Methyl ; Dacomin 865 SL (2,4 D Dimethyl amine); Round Up 486 SL (Isopropyl amine glyphosate); Bimaron 86 WP (active ingredient Diuron); Gramoxone (active ingredient paraquat dichloride) • Insecticides : Santador (active ingredient Lambda Cyhalothrin); Starthene (active ingredient Acephate); Cymbush (active ingredient Cypermethrin) Rodenticides : BM Notikus and Kresnakum (active ingredient Brodifacoum 0.05% ;
However, during ASA1 the auditor observed that : The usage of pesticides such as Cymbush at the dosage 200 cc/ ha and Santador with the dosage 470 cc/ ha were not in accordance with Procedure SOC/PSM-7.10-13 that shall be 300 cc/ ha and 400 cc/ ha respectively, no verification from supervisor. For this case, a major NC#3 was raised. (Indicator 4.6.2) Socfindo has implemented integrated IPM techniques comprising chemical, physical (by hand picking of caterpillars or Oryctes larvae for immature palms) and biological control, in order to minimize the use of pesticides. Selective method is used to reduce paraquat, only specific weeds species such as Dicranopteris and Stenochlaena shall be eradicated by paraquat. (Indicator 4.6.3). Sei Liput also made an attempt to minimize the use of paraquat usage by reducing the budget in 2015 which is lower than in 2014. The auditor checked that the use of paraquat in 2012, 2013 and 2014 show decreasing trends as follow: 3018 liters, 1640 liters, 370 liters consecutively. ( Indicator 4.6.4). According to the Agricultural Ministry Decision (Kepmentan) No. 949/Kpts/TP 270/12/98 year 1998 regarding Restricted Pesticide article 5, all handlers of restricted pesticide shall be trained by Pesticide Comission Level I. During the surveillance-1 assessment, the auditor verified the implementation and found: The new Opas Kantor named Ramli (Division III) whose job description was to mix pesticides had not been trained for restricted pesticides applicator training. For this case, a major NC#4 was raised. (Indicator 4.6.5). As per requirement, all MSDS of stored agrochemicals and their hazard symbol were available on site. Emergency shower and eyewash facility, complete with Personal Protective Equipment (PPE), such as apron, goggles, respiratory masks, hand gloves and boots to ensure the safetyness of chemicals handler were also provided to anticipate any emergency occurs when handling chemicals. Secondary containment was built around the chemical storage area, to ensure that no chemicals run off contaminating surrounding environment. Before use, each agrochemical was diluted by a designated worker so called Opas Kantor at each division office. (Indicator 4.6.5 & 4.6.9). Agrochemicals were stored in the Central Agrochemicals Storage with limited access, close to the estate manager office, from there agrochemicals were distributed to Agrochemicals storage in each division, separated from fertilizers. Agrochemicals storage was designed with appropriate ventilation. Pesticide container waste was collected at centralised hazardous warehouse and PT Socfin Indonesia Sei Liput has appointed PT Amindy Barokah to collect the wastes regularly, who has a license as collector for toxic and hazardous waste from Ministry of Environment (MoE) and also has a hazardous transporter licence from Transportation Department. The hazardous central warehouse has also licence from Regional Bapedalda. However, the implementation was not conducted correctly.The was no appropriate management and disposal of hazardous chemicals containers as chemical/pesticide containers was not properly disposed and used for other purposes. For this case, a major NC#5 was raised. (Indicator 4.6.6 & 4.6.10). The workers who handled pesticides were equipped with proper PPE such as aprons, safety goggles and masks. It was confirmed that The Head of Agronomy had recommended more environmentally agrochemicals and methods, for example: high power spraying and trunk injection instead of fogging method. (Indicator 4.6.7 & 4.6.8). Specific Medical check up result for pesticides applicators in 2014 were not available, for example in Division II, III dan IV. For this case, a major NC#6 was raised. (Indicator 4.6.11).
During the assessment, auditor interviewed workers and checked monitoring forms of the list of pregnant and breastfeeding women were available, confirming that no pregnant and breastfeeding women ware assigned for spraying activities. This complied to the requirement as well as to the company’s policy stated inside the Working Agreement (Indicator 4.6.12)
Criterion 4.7 (C.4.7) An occupational health and safety plan is documented, effectively communicated and implemented.
Both Sei Liput mill and estate have been certified for Occupational Health and Safety Management System. A No documented system has been developed and implemented through Health & Safety Annual Program and its target. Target achievement was evaluated every month and was reported quarterly to the management as well as to the local authority. A dedicated and trained officer has been assigned as Healh and safety Engineer to manage the implementaton including conduct HSE inspection. As mandatory regulation on health and safety management system which required by Indonesian Government, Socfin Indonesia Sei Liput has implemented and obtain certificate of Sistem Manajemen Keselamatan dan
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Kesehatan Kerja/SMK3 (Occupational Health and Safety Management System/OHSMS). To implement the system the company Organisation Structure of Tim Panitia Pembina Keselamatan dan Kesehatan Kerja / P2K3 (OHS Team) has been established and validated by The Head of Manpower Department of Aceh Tamiang Regency, Aceh Province in April 01, 2013.
The report of OHS implementation was submitted to Head of Manpower Department of Aceh Tamiang Regency, Aceh Province every 3 months. Auditor noted that report of 2014 for quarter 1 (January-March), 2 (April~June), and 3 (July~September) and Quarter 4 (October-December) are available. The secretary of the team, Mr. Endro Kuswanto hold Sertifikat Ahli K3 Umum (Certificate for General OHS Expert) number KEP 1627/M/DJPPK/VI/2012 dated on June 11, 2012 from Labor Agency of Aceh Tamiang Regency and valid until June 10, 2015. The secretary of this committee has the responsibililties to communicate the health and safety policy and issues to all staffs and workers in mill and estates. He also has to check the the effectiveness of the health and safety plan as well as the safety facilities in the mill and estates. The OHS team responsible to assure that all operations that are equiped with necessary safety facility and equipment such as bund wall, spillage control pit, eye washer, fire extinguiher, sand, PPE, hydrants, First Aid tool kits, medical box are available on worksites by monthly checking for the mill and estates. The result of these activities were recorded in Laporan Patroli K3 (Monthly OHS Monitoring and Inspection Report) form SOC/Form/14.2- 01
There is a monthly meeting between the management and workers on health and safety issues. In this meeting concerns of all parties about health, safety and welfare were discussed and any issues raised were recorded in Laporan P2K3 (OHS Report). Auditor verified the monthly minute of the meeting and found it was available and adequate. The discussion was mostly about the OHS program and its implementation, as well as the OHS program, such as the implemnetation of OHS policy, personel protective protection, safety check list, insident happened, etc (Indicator 4.7.1 and 4.7.4)
All the operations have been risk assessed through HIRAC (hazard identification and risk assessment control) in accordance with Sistem Manajemen Keselamatan dan Kesehatan Kerja/SMK3 (Occupational Health and Safety Management System/ OHSMS). The risk assessment was availabe for mill and estate. The HIRAC was updated yearly, and the last update was on April 02,2014. According to this system all activities or operations having hazard shall be controlled by an appropiate procedures to eliminate and/or minimize and/or reduce risk caused by the operations. PT Socfin Indonesia Sei Liput has series of procedures and working instructions to identify hazards and to prevent and control the risks. Some of them are listed below
- SOC-PSM-7.10.02, re: Safety Instruction for Agrochemical Sprayer - SOC-PSM-7.10.10, re: Safety Instruction for Agrochemical Mixing and Storage - SOC-PSM-4.10, re: Hazardous and Medical Waste Handling and Storage - SOC-PSM-4.09, re: High Risk Operation Handling - SOC-PSM-4.04, re: HIRAC Identification and Handling - SOC-PSM-4.14, re: Occupational Incident and Handling and Reporting - SOC-PSM-4.11, re: Wastewater and Emission Monitoring and Monitoring - SOC-PSM-4.12, re: POME (Palm Oil Mill Effluent) Treatment and Monitoring - SOC-PSM-4.16, re: Medical Measurement and Monitoring for Employee - SOC-PSM-6.03, re: Personnel Protective Equipment (PPE) Maintenance and Inspection - SOC-PSM-4.21, re: Emergency Equipment Maintenance and Inspection The auditor verified the existence and implementation of those SOPs and found all of them were available at site, and through checking the records noted they were well implemented. Some example of records checked such as checklist of safety equipment used, hazardous waste received at storage waste, HIRAC identificatiion list, insident report, waste water and emission analysis, medical check up result, PPE inspection and usage, and emergency drill, and MSDS. Especially in agrochemical storage, the MSDSs are available in Bahasa Indonesia and well communicated to the workers. All precautions attached to agrochemical products have been properly observed and applied to the workers. As per procedure SOC/PSM/4.12 the OHS patrol shall be performed monthly. However there is no OHS patrol for hazardous waste storage in 2014 and for all area in January 2015. The auditor issued NC#07(Indicator 4.7.2) Workers who worked in hazardous and high risk areas were provided training to minimize their risk through an annual training program on safety and health issues. The training includes training for First Aid (Pertolongan Pertama Pada Kecelakaan/ P3K), safety and health regulations and legislations of the Republic of Indonesia and emergency drills. Workers trained in first aid are available in estate and mill operations. In overall the training seems effective and most of the operators have been trained and understood the risk. Records of several occupational, safety and health/ OHS trainings since January till September 2014 are available, such as training on OHS and RSPO, First Aid, HIRAC and OHS program, and procedures related to OHS. The training of RSPO PNC and Supply Chain and OSH was given by the Head of Sustainability Department, while training for agrochemical and pest control was given by the estate managers and agrochemical suppliers. Under SOP Penanganan Pekerjaan Risiko Tinggi (High Risk Operation Handling) all high risks shall be prevented. All pesticide sprayers are provided with proper PPE, such as a mask, hand gloves, safety shoes and body cover coat (apron). The company provides facilities for cleaning up after the sprayer work and storage spaces for keeping PPE after use. Workers who work at noisy areas are provided with ear muff and ear plug. The monitoring of noise levels
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was done at the mill every 6 months. Noise levels at the boiler station and the sterilization unit are, as per records of June 2014, between 81-101 dB. This exceeds the limit so usage of ear muff is mandatory to prevent hearing loss of mill’s workers exposed to noise. Notification of noise levels and warning of using the ear muffs are available at site. The workers who worked in high risk areas such as boiler house, genset room, electrician, and chemical sprayer have specific licenses to work. The auditor checked that the licenses for chemical appicators are still valid. (Indicator 4.7.3) As mentioned in procedure SIMP-PROS-01 re: HIRAC (Hazard Identification and Risk Assessment Control), the company has a list of activities which are indicated as the emergency operations. To handle the emergency operations there is the procedure SIMP-PROS-24 re: Emergency Respond. Both SOPs are available in Bahasa Indonesia and clearly understood by all workers. The records of implementation of these SOPs such as: List of HIRAC, Emergency and First Aid Training, Emergency Drill, and Emergency Equipment Maintenance and Inspection are available and adequate. Last Emergency, First Aid and Emergency Drill trainings for mill and estates were conducted in September 26~27, 2014. The Emergency Equipment Maintenance and Inspection records for January~September 2014 were available. First aid equipment was available at work sites and regularly checked by the OHS team. The accident records were available and reported to the management and the Head of Manpower Department of Aceh Tamiang Regency, Aceh Province every 3 months. The auditor checked and verified all records and noted all of them are well maintaned. (Indicator 4.7.5) All employees, especially those in high risk work, undergo an annual health examination by Clinic Anugrah Ibu Medan. PT Socfin Indonesia Sei Liput provide one central clinic which chaired one industrial higyene doctor Mrs. Hariaty, four nurses and one midwive to serve the employees in mill and estate. All of them have legal licenses to conduct their job. The doctor visit the clinic twice a week, while during their absence, the nurses conduct daily operations. The doctorstrongly prohibit the nurse to give prescription and usage of antibiotic, and they are only allowed to give the general medicine. There are occupational and medical history records for every employee. The last medical checkups of October 16, 2014 include cholinesterase test and audiometric test. According to interviews with the workers, there were no workers suffering from skin disorders or rashes, breathing difficulties or nail problems as a sympton of toxic reactions. The audiometric tests for the worker in noisy areas showed that all worker in genset room, boiler, and kernel production area was normal. There is no evidence that the high risk worker such as operator of kernel crush have performed the regular medical check up as required by Labor Ministry Regulation No.02/1980 and the company’s procedure No SOC/PSM/4.19, which is once a year. No evaluation of medical check up result by the doctor of the clinic for those have performed the medical check up. For this reason the NC # 8 was raised. There was a record of an internal audit on usage of PPEs to ensure the compliance with the minimum standards. The auditors interviewed the employees who are exposed to high noise levels and found that they were was normal and there was no complaints raised. All the permanent employees and contract workers are insured under Jaminan Sosial Tenaga Kerja/JAMSOSTEK (Social Insurance for Labor). The HR Department of mill and estate pays the insurance monthly for all workers. Auditor checked and verified record of JAMSOSTEK payment installment and found it worked. (Indicator 4.7.6) As mentioned in SIMP-PROS-25 re: Occupational Incident and Handling and Reporting, if there is any occupational injury, the company shall report it into form F.25-01 Report Occupational Incident. The report in detail mentioned the chronology of the accident, the victim handling, the lost time injury and analysis of root cause. Auditor noted that there was no lost time incident reported during the periode of January-December 2014. (Indicator 4.7.7) Criterion 4.8 (C.4.8) All staff, workers, smallholders and contractors are appropriately trained.
The training was conducted based on Human Resource Training Procedure No. SOC/PSM/6.02, where Training Program Yes was divided into two (2) categories, internal and external. Internal training was directly managed by Sei Liput Unit while external training was managed by Head office Medan. The procedure mention the training mechanism for its worker and subscontractor in accordance to achieve adequate competencies. Training programmes are formulated on yearly basis and was available for 2014 and 2015. There are several training programs for workers, i.e. awareness ISO 9001, 14001, OHSAS 18001, RSPO; Spraying and Fertilizing Practices, Personnel Protective Equipment/PPE, Integrated Pest Management, Agrochemical Handling, HCV, Toxic and Hazardous Substances, Toxic and Hazardous Waste Management, Fire Prevention and Control, Green House Gases, and Heavy Equipment. (Indicator 4.8.1) These trainings were held during January~December 2014 and followed by related participants of the mill and the estate. All training records, including attendance lists, photographs and training materials were available and properly maintained. There was an evaluation of the effectiveness of the training for all those trained participants. The auditor checked the record of the training such as: HCV Monitoring (Jan’2014), Usage of Pesticide (March’2014), OHS Management (Jul’2014), IPM and Hazardous Waste Management (Oct’2014), GHG (Nov’2014). The mill and the estate managers keep the individual training records of all employees. (Indicator 4.8.2) Interviews with staffs and workers of mill and plantations showed that they are aware of the risk of their job, to environment and safety and health. It was confirmed that the training was effective and the competence of worker was enough to support their job. No external FFB supplier applicable for this unit since all FFB coming from their own estate.
Principle 5: Environmental responsibility and conservation of natural resources and biodiversity
Criterion 5.1 (C.5.1)
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Aspects of plantation and mill management, including replanting, that have environmental impacts are identified, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continual improvement. PT Socfin Indonesia Sei Liput has obtained approval of Environmental Impact Assessment in the form of Environmental Management and Monitoring Plan or Upaya Kelola Lingkungan-Upaya Pemantauan Lingkungan (UKL-UPL) based on the Yes Minister of Agriculture Decree No. RC 220/475/B/III/1994, dated on 17/03/1994. The document containing the activities planting and/or replanting; production process, management of mill effluents; management of pests and diseased palms by controlled burning. The assessment covered both the mill and estates of Socfin Indonesia Sei Liput. (Indicator 5.1.1) The AMDAL/EIA includes the mitigation of negative impacts and improves the positive impact. The negative impacts for the environment such as pollution to the soil, water surface, and air. These impacts was specifically mentioned in the EIA report as well as in the activity of Aspect and Impact Assessmert. To control both negative and positive impacts the company has provided a comprehensive management plan and written in the other document namely Rencana Kelola dan Pemantauan Lingkungan / RKL-RPL (Monitoring Report of Environmental Management Plan). This document was available at mill and l estate. The top management of Socfindo Sei Liput has appointed EHS Manager, Mr. Kuswanto to implement the management plan. (Indicator 5.1.2) The monitoring report of UKL-UPL was performed twice a year as Laporan Monitoring Upaya Kelola dan Pemantauan Lingkungan / UKL-UPL (Monitoring Report of Environmental Management and Monitoring Program). The document shall be submitted to Badan Pengendali Dampak Lingkungan Daerah/BAPEDALDA or Local Environmental Impact Assessment Agency every semester (6 months). Auditor team found that the UKL/UPL monitoring report for first and second semester 2014 were available. Auditor also noted that the report of first semester been delivered to the local Environmental Agency of Aceh Province in August 2014 and the report for the second semester of 2014 was already sent in January 2015. (Indicator 5.1.3) Criterion 5.2 (C.5.2) The status of rare, threatened or endangered species and other 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 operations managed to best ensure that they are maintained and/or enhanced.
HCV assessment was done in July-August 2011 by Faculty of Forestry, Bogor Agricultural Institute. The assessor No team consisted of six (6) members (Ir. Djoko Arie Sulistianto, Ir. Heru bagus Pulunggono, MSc., Ahmad Fasial Siregar, S. Hut., Sutopo, S. Hut., M. Sayidina Ali, Amd., Udi Kusdinar, S. Hut.) and was led by Ir. Nyoto Santoso, MS. Based on the list of HCV RSPO approved assessor updated on Sep 1, 2012, the leader and all the members of HCV assessor were approved. Based on assessment report, identified HCVs were HCV1.2 (endangered species), HCV 4.1 (river), and HCV 6 (cemetery) within total area of 179.71 ha (4.82% from total HGU of Sei Liput area). Indicator 5.2.1). Identified HCV habitats and rare, threatened or endangered species, are managed and monitored based on procedure No. SOC/PSM/9.06 2nd Ed. Rev 00 dated Jan 1, 2011 and for buffer zone of river as referred to Conservation Areal Procedure (SOC/PSM/9.07). HCV Management & Monitoring Program was available as per requirement, which was drafted according to internal Socfin’s Procedure of “HCV Management & Monitoring” No. SOC/PSM/9.06 rev 00 dated Jan 01, 2013. Identified HCVs in Sei Liput as follow: a. HCV 1.2 (rare and endangered species, CITES Appendix II), such as Macaca fascicularis (kera ekor panjang), Prionailurus bengalensis (Kucing kuwuk), Arachnothera longirostra (Pijantung kecil), Halcyon smyrnensis (Cekakak belukar), etc., which were distributed in area of 177.97 ha. b. HCV 4.1 as unique sources of water for daily use. Tamiang River, Block 6, 7,16, 18, 26, 27, 28,34, 39, 52, 64, 76, 79, 86, 87, 92, 94 as much as 177.97 ha overlapping with HCV 1.2. c. HCV 6 as cemetery, i.e. Kasiman Cemetary (Block 71), Slele Cemetary, Workers Cemetary (Block 47), Rimba Sawang Cemetary and Public Cemetary at Block 06 for area of 1.74 ha Examples of management and monitoring activities within the program were riparian area management as a buffer zone (SOC/PSM/9.07) by manual upkeep activity, applied organic fertilizer (Empty Fruit Bunch), planting of trees; Signage installment in strategic places; HCV area socialization to stakeholders; training for HCV appointed operators, lining of cemetery borders, etc. Since HCV areas are overlapped with planted areas, the company commit not to plant oil palm in HCV areas during replanting as their management plan. This was verified. Sei Liput management has been appointed nine (9) dedicated and trained officers from all divisions to monitor HCV monitoring program. The appointment letter No. SI/Div/Bi/09/13 dated January 25, 2013 was available. The socialization of HCV awareness was delivered by Head of Sustainablity, Mr. Hasan Bisri for all workers and stakeholder on January 22, 2013. HCV operators conduct HCV monitoring program every month, while security officers make daily patrol report to prevent HCV area from violation as explained in their job descriptions. If any severe violation in HCV areas occurs, there will be disciplinary measures for workers, while for local community will be reported to the authority. (Indicator 5.2.2 & 5.2.3 ). The auditor checked that realization of the monitoring program was well recorded and has been verified by Assistant Manager during the surveillance assessment, however, auditor observed that: No evaluation of HCV monitoring report which conducted monthly as feedback for next HCV Management Plan as required by Procedure SOC/PSM/9.07. For this case, a minor NC#9 was raised. (Indicator 5.2.4).
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Sei Liput held regular public consultation involving stakeholders including local communities that also socialized and discussed HCV issues. No records of objection from stakeholders and local communities were found and they supported Sei Liput to maintain HCV area. The local communities have right to access and utilize natural resources in HCV area, for example: take clean water, fishing etc, entering cemetery area as long they don’t damage the HCV areas (Indicator 5.2.5). Criterion 5.3 (C.5.3) Waste is reduced, recycled, re-used and disposed of in an environmentally and socially responsible manner
PT Socfindo Sei Liput mill and estate has identified and documented all waste products and sources of pollution. No Mechanism of identification and control all wastes are documented in SOC/PSM/4.09 up to SOC/PSM 4.17 re: Environmental aspect and impact identification and handling; waste water and emission measurement and monitoring, POME (palm oil mill effluent) treatment and monitoring, emission measurement and monitoring, hazardous and medical waste handling and storage. All waste streams have been identified in the list of waste and have been followed up with the necessary waste management plan. Office waste and household waste were segregated and recycled accordingly. Human waste was discharged into septic tanks. Fibre and shell are used as fuel for boiler. Palm oil mill effluent (POME) is used for land application as fertilizer supplement. POME from the mill was pounded in several ponds series. The treated effluent with reduced BOD was applied to the land in flat beds. The BOD level from ponds are monitored monthly and reported in the format Monitoring Analisis Limbah B3 & Monitoring Limbah Cair Pabrik (Hazardous waste and waste water monitoring). Air pollution (from the boiler/generator) was controlled by routine maintenance and the air quality from the emission stack was monitored every six months. According to Laporan Monitoring Rencana Kelola dan Pemantauan Lingkungan / RKL-RPL (Monitoring Report of Environmental Management and Monitoring Program), which is reported to the Environmental Agency of Aceh Province in July 24, 2014, the air parameters such as particulates, SOx, opacity, NOx, COx are still below the standard level. (Indicator 5.3.1)
Chemical and other hazardous wastes such as: pesticide containers, batteries, waste oil and used oil filters in the estates and mill are recorded and kept in a store room. The storage rooms are completed with the related work instructions, MSDS, as well as and warning signs of the potential danger.. Some waste oil is used as lubricant for engines in the mill. For both chemical and hazardous waste storages there are secondary containments and oil traps in order to avoid spillage to the environment. Wastewater from washing of knapsack sprayers are poured into a tank and then to be reused for spraying the weeds. However, there was no appropriate management and disposal of hazardous chemicals containers as chemical/pesticide containers was not properly disposed and used for other purposes. The auditor raised a Major NC#05
PT Amindy Barokah has a license as collector for all these wastes based on Decree Letter No.33/2011, dated on May 10, 2011 from Ministry of Environment (MoE), and the permit valid until May 2016. There was hazardous transporter licence from Transportation Department valid until 22.10.2015 and hazardous central warehouse has also licence from MoE No. 503/0009/B3/VII/2014 dated on 11.7.2014 valid until 10.7.2019. All waste water, hazardous waste, and emissions complied to applicable regulation and reported in RKL-RPL report every six month and submitted to the Environmental Agency of Aceh Tamiang regency, Aceh Province (Indicator 5.3.2)
There was a procedure to manage waste, Prosedur Pengelolaan Limbah B3, SOC-PSM-022 (Hazardous Waste Management). This procedure was available and communicated to the waste officers at all sites of Sei Liput estate and mill. However the hazardous and toxic wastes was not identified and documented properly and the records was not available at the waste storage. For example there was no record for chemical container and contaminated rags. This is re-occurance from last audit and raised to NC#10. Wastes were identified in format Waste Identification and Balance, which identifies all types of wastes, the pollution sources, amount, where to be disposed, name of waste collector and the truck identification. Copy of permit/licence of waste collector was available at Sei Liput mill and estate. All hazardous wastes and emissions are reported in RKL-RPL and submitted to the Environmental Agency of Aceh Tamiang District, Aceh Province every six months. (Indicator 5.3.3)
Criterion 5.4 (C.5.4) Efficiency of fossil fuel use and the use of renewable energy is optimised.
Based on company policy as stated in Kebijakan Lingkungan, Keselamatan dan Kesehatan Kerja, dan Energi Yes Terbarukan (Policy of Environmental, Occupational Health and Safety/EOHS and Renewable Energy) updated in January 2, 2014, PT Socfindo Sei Liput mill and estates has used fibers and shells as biofuel for its boiler to generate steam for mill operation. Fibres and shells are used as energy source in the mill as bio fuel to generate steam. Steam generated from boiler is used for processing FFB to CPO products. Steam also used for its turbine, while they use diesel oil for its generator. Electrical energy generated from turbine and generator is used for mill operations and houses. The generator is only used as backup to generate electricity when the main turbine is down. The company monitored the use of fibre and shell and recorded in the Laporan Penggunaan Fiber dan Cangkang (Monthly Report of Fiber and Shell Use). The average use of fiber and shell during January~December 2014 were 0.13 ton fiber/ton FFB and 0.30 ton shell/ton FFB, meanwhile the average use of diesel oil was 4.1 ltr oil/ton FFB. Plan to improve efficiency of the use of fossil fuels was conducted by establishing the standard of efficiency for the use of fossil fuel. This standard sets the fuel oil consumption in liter per hour for every single generator set and vehicle. For example the efficiency standard of
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fuel consumption for Generator Set Caterpillar 3306 is 23 liters/hour, Generator Set Perkins PL30 is 5 liters/hour and for Backhoe Loader Case 580SM/SR is 7 liters/hour. Monitoring of this efficiency was performed monthly and reported to Technical Department in Head Office. During period of January to December 2014 fuel consumption for all vehicles and generator sets has met the standard of efficiency (Indicator 5.4.1).
Criterion 5.5 Use of fire for preparing land or replanting is avoided, except in specific situations as identified in the ASEAN guidelines or other regional best practice.
Socfin has established a zero burning policy and it was documented in “Ethics Policy” No. SOC/Dp/4.01-64 article 11. This policy was socialized by OHS officer to the replanting contractor who was hired to do replanting each time Yes before the contractor conduct the work. To ensure zero burning activities, the contractor was monitored regularly through OHS inspection for contractor. (Indicator 5.5.1).
NA for Indicator 5.5.2
Criterion 5.6 Plans to reduce pollution and emissions, including greenhouse gases, are developed, implemented and monitored. PT SOCFIN INDONESIA Sei Liput has conducted an assessment of all polluting activities including gaseous emissions, particulate/soot emissions and effluent. Result of assessment was reported in Daftar Kegiatan dan Potensi Pencemaran (List of Activities and Its Potential Pollution). This record is available for all activities whichNo are potentially harmfull to the environment. Gaseous emissions mainly come from boilers, generator sets and motor vehicles. Air pollution measurement was conducted every six months by Laboratorium Balai Riset dan Standarisasi Industri (Reasearch and Industrial Standardization Laboratory) Medan. The record was performed as Laporan Hasil uji emisi sumber tidak bergerak, kualitas udara lingkungan kerja & emisi sumber bergerak (Air Emission Monitoring Report ). Palm oil mill effluent (POME) are processed through 4 series of opened settling ponds completed by the two aerators. The POME from last pond was discharged to the river and the company has permit of POME’s dicharge. The company has permit to discharge the POME to the river through the letter from Aceh Tamiang Regency of Aceh Province,. No 334/2013 dated on 01.10.2013 and valid until 30.09. 2018 regarding Ijin Pembuangan Limbah Cair Wastewater Discharge Permit). Monitoring of POME was reported in Monitoring Limbah Cair Pabrik & Limbah B3 (Monitoring of wastewater and Hazardous waste). The average BOD level were about 78~96 ppm and pH 6.9~ 8.0 which still in allowable level of the permit given, which was below 100 ppm, pH around 6~9. Auditor checked and verified that all waste water, hazardous waste, and emissions were monitored periodically and reported in RKL-RPL (Monitoring Report of Environmental Management Plan) report every six month and submitted to the Environmental Agency of Aceh Tamiang Regency, Aceh Province. Last report of RKL-RPL was for period of January-June 2014 and July- December 2014. (Indicator 5.6.1). The company has not prepared yet the identification, reduction plan to reduce or minimise GHG emissions (Indicator 5.6.2). These are required by the Presidential Decree No. 71/2011 National Inventory and Mitigation of Green House Gases. The auditor issued NC#11 The company has conduted the monitoring emission of pollutants such as waste water, gaseous emission, which reported to goverment each six month. But for the greenhouses gase the company has not reported its emission through the RSPO’s GHS report yearly. The auditor issued NC#12. (Indicator 5.6.3).
Principle 6: Responsibility consideration of employees and of individuals and communities affected by growers and millers
Criterion 6.1
Aspects of plantation and mill management that have social impacts, including replanting, 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 continual improvement.
Social Environmental Impact Assessment Report (RKL dan RPL (Amdal) Perkebunan Kelapa Sawit dan Pengolahannya Sei No Liput/Medang Area, Kejuruan Muda District and Karang Baru, Aceh Tamiang Regency, Nanggroe Aceh Darussalam Province, Jan 2006, Revised version) was available and had been verified during assessment.
PT. Socfin Indonesia (Socfindo) Sei Liput Mill already has prepared a Social Impact Assessment (SIA) report which was prepared by an ISO secretariat of PT Socfindo, in October 2012. Based on the social impact assessment document, the existence of the company has a positive impact, such as: (1) employment, (2) access road, (3) new livelihoods and, (4) the provision of public facilities. (Indicator 6.1.1)
Based on interviews with staff ISO Secretariat, the preparation of the SIA was carried out with the involvement of stakeholders/ affected parties, such as village heads. But, there is no evidence that the assessment has been done with the participation of affected parties. The evidence in question is the photographs, meeting attendance list and minutes of meeting. Thus, NC#13 was raised. (Indicator 6.1.2).
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Socfin Sungai Liput Unit, has a management plan and monitoring plan of social impact as contained in SIA document. However, the results of monitoring of social impacts, in accordance Social Impact Assessment Procedure No. SOC / PSM / 9.03, not available. However, based on monitoring report of Social Environmental Impact Assessment year 2012, auditor concluded that the result was insufficient. The aspects that were monitored such as road access right, infrastructure development, job opportunity, etc., were described only qualitatively, without being supported with enough data comparison. For example, with the existence of Sei Liput Unit, the job opportunity has increased, with no detail explanation of how much the increament. Thus, a NC#13 was raised. (Indicator 6.1.3). SIA Documents was prepared on Oktober 2012. Until now there has been no update for that document. According to RSPO P&C No 6.1.4, the social management plans shall be reviewed as a minimum once every two years. Thus, a minor non- conformity was raised (Indicator 6.1.4).
PT. Socfindo, Sungai Liput Unit not have a smallholding / farm partnership. Therefore, indicator 6.1.5 is not applicable. (Indicator 6.1.5)
Criterion 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
Socfin has prepared a documented procedure for communication and consultation, namely Social Communication Procedure Yes No. SOC/PSM/9.01 Edisi 01, Revisi 04, dated 01 September 2014 This procedure covers 2 parts, i.e. handling of information and aspiration’s request and communication & consultation with stakeholders. The aim of organizing communication and consultation forum through, for example, a stakeholder meeting was to maintain good relationship with local communities and other stakeholders. Stakeholders meeting last conducted on September 4th, 2014. (Indicator 6.2.1) Frans Tambunan as Manager (Pengurus) of Sei Liput has been appointed by General Manager, regarding appointment of a dedicated person responsible for consulting and communicating with stakeholders/local community. An Appointment Letter No. Um/X/Bi/2765/10 dated November 15, 2010 (Indicator 6.2.2)
Minutes Meetings of conducted stakeholder meetings that had been done were recorded in form No. SOC/Form/4.07-01 and the Attendance List in a form No. SOC/Form/5.01-03. Records were well kept. The updated list of stakeholders was available (see
Table 3.1 List of Stakeholder surrounding Sei Liput Unit). The records of request of aspiration and its responses were available. Example from stakeholder requesting: on January 7th, 2015 the company got requests funding from local community for Danrem Cup Activity. And company assits amount 750.00 IDR on January 17th 2015. (Indicator 6.2.3)
Criterion 6.3
There is a mutually agreed and documented system for dealing with complaints and grievances, which is implemented and accepted by all affected parties.
Socfin has established a system for handling internal and external grievances and dispute resolution in a documented Yes procedures, which was in accordance with applicable regulation UU No. 2/2004, namely Social Complaint Handling Procedure No. SOC/PSM/9.02 Edition 01 Revised 03, applicable on September 1st, 2014. External complaint include land dispute, environmental issue, access to public facility such as bridge, road and job vacancies or company contribution to stakeholder. If the problem cannot be resolved by negotiation, the company will take legal action involving related institution. These procedures had been socialized to internal and external stakeholders during stakeholder meeting. The procedure has mechanism for difficult-to-resolve conflicts whereby such cases would be brought to court for legal judgments. Auditor noted that the system enable to resolve of any disputes in an effective, timely and appropriate manner; to ensure anonymity of complainants and whistleblowers; and aim to reduce the risk of reprisal.The policy has been communicated and discussed internally within organization through the internal meeting as well as externally through the stakeholder meeting. Every complaint both of internal or external have delivered by KTU and Assistant. The obligator for this complaint is manager. Every complaint must be responded by company in one month. The protection for complaints identity has been mentioned in procedure SOC/PSM/9.02 , rev 03, applicable on September 1st, 2014. (Indicator 6.3.1) During the assessment, the auditor has conducted interviews and public consultations with various stakeholders, such as local village chief, head of sub-district, employees and suppliers. According to the public consultation, there was no hard complaint from community. Based on public consultation on December 2014, there is a little complaint from community because company prohibits the cow grazing in Socfin plantation and now this complaint is solved by discussion between company and Purwodadi community. The result is: Purwodadi community is allowed cow grazing around plantation by requirements are: (1) Purwodadi community allowed grazing only at Pokok Tinggi. (2) If in that area there are many solid application, empty fruit bunch and chemical application, then grazing activity must be moved to other area. (see Letter to Head of Purwodadi Village No. SL/X/Bi/s95/2014. (Indicator 6.3.2)
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Criterion 6.4
Any negotiations concerning compensation for loss of legal, customary or user 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.
Socfin has established a procedure for identification and calculation of fair compensation for land, namely Prosedur Yes Identifikasi dan Perhitungan Kompensasi Lahan No. SOC/PSM/9.05, Ed. 01, Rev. 00, dated Jan 1, 2010, supported with Land Acquisition Procedure No. SOC/PSM/9.04. These procedures covered an identification of reserved land for plantation development, identification of the land lord, conflict resolution, and land compensation. Land conflict will be handled through a deliberation looking for a win-win solution. If the dispute is not settled, then the case will be brought up to court. (Indicator 6.4.1) No latest land compensation has been made. So, indicator 6.4.2; 6.4.3 is not availabe.
Criterion 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.
Socfin has policy concerning pay and conditions for employess in Ethics Policy No. SOC/Dp/4.01-64. Employee’s pay rate for 2015 was according to the List of Payment Rate for Non-Staf PT. Socfin year 2015, where it was stated that the payrate was 1,875,500 IDR (for period January 1st, 2015 until December 31th, 2015, exclude 15 kg additional rice (=126.000 IDR, withNo rice price 8.400 IDR), total payment rate 2.001.000 IDR. This was complied with Nangroe Aceh Darussalam Governer regulation No. 81/2014 regarding Province Minimum Payrate 2015 which was 1,900,000 IDR per month. As the company’s policy, extra rice will be monthly given to worker’s wife and worker’s childer, with following specification: 9 kg per worker’s wife, and 7.5 kg per worker’s children. Beside interview, auditor also checked the payroll document and salary slip to ensure that wage is paid as above policy. (Indicator 6.5.1)
Worker’s contract is available in a form of “Working Agreement” dated Dec 17, 2012 (Perjanjian Kerja Bersama), where the entire worker’s right and obligation are detailed within. Based on interviews with some of the workers at Division III (Nurhaeda, Elinawati, Waliem, Maria, Sardinem), they understood all the provisions contained in the collective agreement. According to them, the company also has met all of the rights of workers.
Beside permanent laborers, company also employed the casual laborers. Total of casual laborers in 2015 are 36 people. The casual laborers employed by company through employees cooperative. Which mean company has contract with employees cooperative. In this case casual laborers get the wage from it cooperative. Working Agreements with Employees Cooperative were available. For example, contract No. SL/SPK/01/XII/2014 dated Desember 1, 2014 between Sei Liput management and Employee Cooperative (Koperasi Karyawan). In the contract was clearly defined the contractor’s right and obligation, in compliance with Labor Act No. 13/2003, such as not providing underage workers, contractor shall provide accident insurance (Jamsostek) to the worker, contractor shall pay the worker as per regulation, contractor shall provide PPE, etc. (Indicator 6.5.2) Company has provided housing, sports facilities, religious facilities, clinics, daycare, and school (elementary school). Each division housing complex was provided with common well, where everybody can take water from. During dry season and when the well is dry, treated water from mill will br circulated daily in gallons.The water quality was check once a year, where the latest result showed that all parameters were conform to Health Ministry No. 492/2010 with Certificate of Analysis No. 02916/CLACAH dated April 17, 2014. However, during field assessment to Division IV, it was found that houses (Nurhamid’s house) were not in good condition with lavatory. Based on interview with housing staff (Krani Perumahan), there are some houses that do not have a standard lavatory. Workers build a simple lavatory. Thus, a minor non-conformity NC#14 was raised (Indicator 6.5.3). Efforts have been made by the company to improve workers' access to decent food at an affordable price are: (1) The Company provides rice for employees, including their wife and childrens. (2) The Company provides the opportunity for employees to open food stalls. (3) The Company provides an opportunity for the weekly market activity, and (4) the Company provides the opportunity for traders to sell vegetables around the housing. (Indicator 6.5.4)
Criterion 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.
Socfin has documented policy regarding the recognition of freedom of association and respect every worker to have the right to form and to be a member of labor union under “Ethics Policy” No. SOC/Dp/4.01-64, Revision 03, dated June 1, 2014. Yes Workers were free to join Labor Union, namely “Serikat Pekerja Seluruh Indonesia - SPSI”. Bipartite meeting records between SPSI Sei Liput and Estate Management were available. (Indicator 6.6.1)
There was several meetings between member of labor association as well as between labor union and the company’s representative. The audit team has checked the minutes of meeting dated on December 16, 2014 discussing about
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additional fee for harvesting (premi) propose 2015. (Indicator 6.6.2)
Criterion 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 programmes. Children are not exposed to hazardous working conditions.
Socfin has a documented company policy on worker age requirement under “Ethics Policy” No. SOC/Dp/4.01-64 Revision 03, Yes dated June 1, 2014, which is in accordance with national laws Minimum Worker’s Age Act No. 20 year 1999, where is stated that the minimum employed worker’s age is 18. Records of recruitment requirement shown that minimum age of 18 was required which was proved with submitting birth of certificate, identity card, or other such as driving license along with job application. As example, recruiting the new workerin 2012. The age is of youngest worker found was 22 years. List of employee consisted of private worker’s data including their age showed that there were no underaged workers. Randomly cross checked on field observation confirmed that indeed no underage children are being employed.
Criterion 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.
An equal opportunities policy was documented in “Ethics Policy” No. SOC/Dp/4.01-64 regarding Indiscriminative Treatment, Yes Revision 03, dated June 1, 2014. The policy stated that Socfin will give equal opportunities to all employees based on their interest and their capability rather than their race, caste, national origin, religion, disability, gender, sexual orientation, etc. This is complying with the requirement as well as the Labor Act RI No. 13/2003 chapter III article 5 & 6. The policy indicated that workers have same opportunities for promotions regardless of race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliations or age. This policy is publicly available and read by workers. (Indicator 6.8.1). Through interview with workers in palm oil mill and plantations, it was confirmed that there was no discrimination on working opportunities, all workers were treated equally. Records of employee’s reqruitment and contract agreement was available. Based on information from Manager of Sei Liput Unit, there was no migrant worker. (Indicator 6.8.2). Company has SOP of Recruitment, Document Number: SOC/PSM/6.01, dated Januari 1, 2014. Based on these SOPs can be seen that the selection, recruitment and promotion of workers based on skill, ability, quality and medical health required for the job. Based on interviews with some of the workers, there is no discrimination in the selection, recruitment and promotion. During the assessment, no complaints about it were received. (Indicator 6.8.3) Criterion 6.9
There is no harassment or abuse in the work place, and reproductive rights are protected.
A company policy on sexual harassment and violence was documented in Protection of Sexual Harassment and Physical Yes Abusement No. SOC/Dp/4.01-64 dated Feb 1, 2011. The procedure has been explained to all workers to ensure their understanding. Records of the meetings to communicate the policy have been well kept. Socialization of Protection of Sexual Harassment and Physical Abusement was held on January 15, 2013. Record of Minutes Meetings and Attendance List of that socialization were well kept. Company socializes the policy (including sexual harassment prevention) in once a year. For new worker, this socialization delivered in the first day, included: company regulation, company ethics policy. Up to the assessment, no complaint records have been found about sexual harassment and physical abusement. (Indicator 6.9.1). As the implementation of female employee’s reproductive right, according to working agreement, female employees will get the right to take maternity leave for 90 days. After they return back to work they have the right for breastfeeding the baby and the mother will not be placed at high risk working station such as handling agrochemicals, spraying, etc. Based on interviewed with women worker (Nurhaeda, Elinawati, Waliem, Maria, Sardinem), the company has implemented this policy well. (Indicator 6.9.2)
The company already has a procedure no. SOC / PSM / 9.02 revision 3, dated 1 September 2014, on the Social Complaints Handling. At the points 5.20 has been said: “The company will not open the identity of a complaint if requested”. Based on complaints book, no complaint submitted. Based on interviews with some workers, no complaint from worker about sexual harassment and physical abuse. This policy was communicated to the worker through socialization and briefing. (Indicator 6.9.3) Criterion 6.10
Growers and millers deal fairly and transparently with smallholders and other local businesses.
No FFB come from other growers (6.10.1 and 6.10.2) Interview with local contractor during the public consultation and checks on records of Surat Perjanjian Kerja sama Pihak-III, Yes (Third Party Contract Agreement); dated on December 1st, 2014 about wholesale job, and the auditor team noted that the contractor understood about this contract and auditor has checked and concluded that contract was fair, legal
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and transparant. Indicator 6.10.3. Based on payment document and interviewed with the local contractor that the payment are always on time. Indicator 6.10.4
Criterion 6.11
Growers and millers contribute to local sustainable development where appropriate.
Socfin has a prepared a procedure for Corporate Social Responsibility (CSR), namely CSR Procedure No. SOC/PSM/9.08. Yes Records of company contributions to the local development were represented as CSR program and its realization. A few examples for CSR activities that have been done are as follow: (indicator 6.11.1) Januari 2014, provision of technical assistance to rice fields in Paya Meta Village Februari 2014, road hardening for Karang Jadi Village and Suka Makmur Village. Maret 2014, road hardening for Seumadam to Mopoli April 2014, provide 6 teachers for Primary School of Seleleh April 2014, support of clean water to surrounding communities and places of worship (Al Ikhsan Mosque, Sei Liput) Juni 2014, scholarship for local elementary school and high school surrounding Sei Liput Juni 2014, reparation of Mosque’s lavatory at Seumadam Village, Alur Village, Alar Bauang Village Based on CSR report of PT. Socfin 2014, CSR budget in 2014 amounted to 124 587 000. Realization of CSR funds in 2014 was Rp. 93,973,969. The Company does not have a smallholding, therefore indicator 6.11.2 is not applicable. (Indicator 6.11.2) Criterion 6.12
No forms of forced or trafficked labour are used.
Based on public counsultation, interviews with several workers, interviews with Head of Worker Association/Labor union Yes (SPSI) and interviews with Sei Liput Estate Management, it was confirmed there was never any labour trafficking. (Indicator 6.12.1).
Based on the assessment, interviewed with several workers and Sei Liput Estate Management, there was no contract substitution found. Provisions of the rights and obligations of employees are all written in the Collective Labour Agreement, which is written clear and detailed. Based on interviews with workers, the company has been running all workers' rights as contained in the Collective Labour Agreement (Indicator 6.12.2).
Based on interview with Sei Liput Estate Manager, there was no migrant workers and temporary workers. During the assessment, the auditor did not find migrant workers and temporary workers. (Indicator 6.12.3)
Criterion 6.13
Growers and millers respect human rights.
The Company has a policy of respect for human rights. The policy stated in Ethics Policy PT. Socfin Indonesia. Yes PT. Socfindo acknowledge and respect for human rights and human freedoms as the rights that are naturally inherent in and inseparable from the human being, which must be protected, respected, and enforced, for humanity, prosperity, happiness, intelligence and justice. In conducting its human rights policy, PT. Socfindo subject to the Law 39, 1999. Ethical standards: a. Everyone is entitled to the protection of human rights and human freedom, without discrimination b. Everyone has the right to obtain treatment, equal protection, in accordance with the law and the dignity of humanity c. Everyone has the right to life, family, continue the descent, to develop themselves, to obtain justice, personal freedom, safety, welfare, and other rights as a human. Ethics Policy has been disseminated to employees on 29 Nov 2014. Record of Attendance List of socialization were well kept. The socialization is conducted minimum once a year.
Principle 7: Responsible development of new plantings
NA for 7 since no new planting and area expansion after 2005. N/A
Principle 8: Commitment to continual improvement in key areas of activity
Criterion 8.1 Growers and mills regularly monitor and review their activities, and develop and implement action plans that allow demonstrable continuous improvement in key operations.
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Due to the company’s policy, the company shall take some action plans for continual improvement to several issues such as: No - optimising the yield of the supply base: - reduction in use of pesticides - environmental impacts, - waste reduction, - pollution and greenhouse gas (GHG) emissions, - and Social Impact However the details still prepared by the company and can not be shown during the audit. The auditor team raised the NC#15
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4.2 Sample criteria for inclusion in this report on an annual basis during the lifetime of the certificate All control points were evaluated
4.3 Noteworthy positive components and identified non conformances
4.3.1 Details of noteworthy positive components There is good commitment from Top Management and good awareness of employees to ensure the implentation of system.
4.3.2 Status of non-conformities previously identified. This section gives an over view of action taken to close out non-conformities (NCs) which are identified during the previous audits. If a minor-non-conformity raised at the last audit, is not closed out, then this will be raised to Major status and the company given 60 days to close this out
NCR NCR Correction Root Cause Corrective Action Conclusion
Criterionon Not all dump truck drivers Listing all dump truck and There are two (2) Monitoring the The corrective 2.1 NoMJ 1 have OHS license as per other heavy duty regulations regarding realization of action for this required in Manpower equipment operators. license for dump truck Training Program and Transmigration Make a training program drivers, i.e. Traffic Act No. for Dump Truck NC was Ministry Regulation No. to gradually provide all 22/2009 clause 80, which Operator. effective, as 9/2010. dumpttrucks driver with stated that truck driver Recruit only dump no re- OHS license. shall have driving license truck driver that occurance NC For all dump truck drivers type B I or B II, and already has a will be gradually trained Manpower and driving license and raised for this for OHS license training Transmigration Ministry OHS license or specific NC. that will held by Regulation No. 9/2010 immediately But another appointed OHS Company clause 11, which stated trained the dump issues raised Service (PJK3 – that heavy duty equipment truck driver in case Perusahaan operator including dump either one of the for the same JasaKesehatandanKesel truck operator shall have licensed not PNC 2.1.1. amatanKerja). In 2013, OHS license. Considering available upon See NC#1: one of the dump truck that an Act is hirearchyly recruitment. NO licence for drivers (with driving higher than Ministry license no. Regulation thus initially the doctor and 800306170463) was Socfin management had nurses at the trained to receive OHS decided to follow only the clinic. The License to PJK3 Traffic Act and neglected corrective the other one. action shall do to monitor all licences. Not all limited pesticides Listing all limited Do not have a list of all Sprayers who do The corrective sprayers at division II as pesticides sprayers. limited pesticides sprayers. not have the 4.6 MJ 3 action was well as the pesticides Applied for limited certificate are not mixer (Opas Kantor) pesticide handling allowed to hanldle effective, no have been trained by training to Sygenta and limited pesticide; NC raised appointed trainer by agreed that the training new member will Pesticide Commisioneras was held in June 20, be directly per required in 2013. proposed to follow Agricultural Ministry Sprayers who do not related training. Decision (Kepmentan) have the certificate are No. 949/Kpts/TP not allowed to hanldle 270/12/98 year 1998 limited pesticide. regarding Limited Pesticide article 5
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NCR NCR Correction Root Cause Corrective Action Conclusion
Criterionon No working contract with Company has established Unclear company’s policy Monitoring of The corrective No daily harvesters, they a new policy regarding for daily worker company’s policy 6.5 MJ 2 action was were not legally listed as daily worker under a implementation. Socfin workers or Letter No. Socialization of effective, no contractors worker. Paid TN/KS/SE/002/13, dated Company’s Policy NC raised below the Regulation of June 5, 2013 with No. Minimum Payment, effective date July 1, TN/KS/SE/002/13, received no accident 2013, which stated that: dated June 5, 2013 insurance, no provisions • Maximum hired daily with effective date of PPE and working harvester is 10% of July 1, 2013. tools. the total permanent harvester and they called as On Job Training Worker • Minimum age of 18 years and maximum age of 30 years. • Protected by Accident Insurance (Jamsostek) and working contract under Cooperation (Koperasi) or other Corporation. Updated Improvement of existing Lack of document Improving The corrective 4.5 MJ 1 Procedure/Working Instruction circular• Receive letter Minimum of rat control from agronomy internal action was not of Rat Control to current control Payment into aof Procedure of department , where communication in situation was not IntegratedProvince/Regional Pest between effective, major NC available during Management• etc. for Rat No. sustainability raised assessment. SOC /PSM/7.10.18 1st Ed. department as the Rev 00 dated June 1, centre of system 2013. management document controller with agronomy department, for any update of procedure according to current situation. Socialization of Procedure of Integrated Pest Management for Rat No. SOC /PSM/7.10.18 1st Wellwater analysis and Performing analysis of No monitoring of well and Establishing The corrective action 4.4 MN 1 river water analysis for well and river water to river water analysis. monitoringEd. Rev 00 of datedwell was effective, no NC 2012 were not available. the accredited andJune river 1, 2013. water This was not comying environmental laboratory. analysis raised with monitoring matrix of environmental aspects which obliged the company to monitor both aspects at least once a year.Medical check up result Sprayers who have high No monitoring of medical Performing The corrective 4.6 MN 2 for sprayers in 2012 cholinesterase are not check up result. monitoring of action was not showed that some of allowed to do spraying medical check up sprayer’s cholinesterase until their cholinesterase result. effective, the parameter was higher are in normal level. major NC than the normal standard, raised but indicated as “Normal” without further justification.
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NCR NCR Correction Root Cause Corrective Action Conclusion
Criterionon Medical check up result Sprayers who have high No monitoring of medical Performing The corrective 4.6 No4 MN for sprayers in 2012 cholinesterase are not check up result. monitoring of action was showed that some ofallowed to dosprayer spraying’s medical check up cholinesterase parameter until their cholinesterase result. effective, no was higher than the are in normal level. NC raised normal standard,but indicated as “Normal” without further justification.
1. During the field Provide goggles for Lack of awareness to use Give awareness to 4.7 MN 6 assessment, it was found harvesters. PPE. all employees to Last NC has been closed, but that harvester was not Provide heat resistant Some PPE are still in use PPE new NC wearing goggles as per apron and gloves for purchasing process. consistently. regarding required in “PPE boiler operators. Purchasing PPE medical check up Regulation Procedure” according to the (MCU) under this No. SOC/PSM/4.21 1st defined minimum point is raised. Ed., Rev 02 dated Oct 1, stock. See NC#8 in 2010. this report 2. Heat resistant apron and glove were not available on Boiler working station as it was required in “Procedure of PPE Regulation” No. SOC/PSM/4.21 1st Ed., RevWorkshop 02 dated Foreman Oct 1, has Give the first safety No monitoring of training Performing The corrective not been trained for “First training for workshop’s program. monitoring of 4.7 MN 7 2010. action was Safety” training. foreman training program OK-CLOSED effective, no NC raised Inspection cards of Replace extinguishers Inspection of extinguishers Give a refreshing The corrective portable fire extinguishers No. 22 and no.19 and were not conducted training to 5.5 MN 1 action was No. 22 (boiler) and providing them with properly. extinguisher no.19 were not available inspection cards. inspectors. effective, no and not in good NC raised condition. Safety pin was missing and the pressure was not in standard range.
Social Impact Assesment Compiling UKL-UPL Supporting data to compile To provide all data The corrective result which was stated in report in detail describing UKL UPL report are not required for 6.1 MN 1 action was UKL-UPL Monitoring Report percentage of local complete. compiling UKL of 2012 was too general. workers and completed UPL report. effective, no Only described the result with monitoring activities NC raised in qualitative way without records. presenting the significant data that can strengthen the result. For example, for job opportunity aspect, it was concluded that the number of hired worker. Moreover, the records of monitoring activities were not available.
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NCR NCR Correction Root Cause Corrective Action Conclusion
Criterionon 1. Housing: some of Unavailability of worker Establishing the The corrective No houses were not in good Identifying worker houses house repair program. worker house 6.5 MN 1 action was condition, for example: that not in good repair program. two semi permanent condition. effective, no houses in division Establishing the worker NC raised III have no toilets, not house repair program. in good sanitation, and Repairing worker houses have broken ceiling. according to the 2. School: the toilets program. numberwas appropriate comparing to students number, where only two semi permanent toilets available for 155 students. 3. Clinic: no tensimeteravailable at division III clinic. Based on interview Establishing the PPE The PPE standard for non- Establishing the The corrective result to daily worker standard for non- permanent workers is still PPE standard for 6.5 MN 2 action was (BHL) on field permanent workers. in process. non-permanent assessment, it was found workers effective, no that no standard PPEs NC raised and working tools provided for daily worker.
Five yearly soil analysis Conducting soil analysis Internal laboratory of soil Conducting soil The corrective as per required by in July 2015 analysis is not accredited analysis in July 4.2 MN 1 action was internal procedure was yet by the National 2015 not available. The latest Accreditation Body. effective, no soil analysis was done in NC raised 2004. Maps of fragile soils were Provide map of fragile Supporting data to create Proving all data The corrective not available. soils fragile soil map are not required to create 4.3 MN 1 action was available fragile soil map. effective, no NC raised No standardized Provide the standard The measurement devices The measurement The corrective measurement tools that measurement devices for are provided by each devices will be 4.5 MN 1 action was were used to measure mixing pesticide solution. estates. provided by Head agrochemicals as per office for effective, no recommended dosage. standardization. NC raised
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4.3.3 Detail of Non Conformities identified during this ASA This section gives an over view of new non-conformities raised during this audit.
AUDIT OUTCOME
During this audit, <11> Non-Conformities MAJOR
<4> Non-Conformities MINOR
Overview of findings Criterion Status* #NC Criterion Status* #NC Criterion Status* #NC
1.1 4.8 6.8 1.2 5.1 6.9 1.3 5.2 Mi 1 6.10 2.1 Maj 1 5.3 Maj/Min 1/1 6.12 2.2 5.4 6.13 2.3 5.5 7.1 3.1 5.6 Maj, 1 7.2 4.1 6.1 Maj 1 7.3 4.2 6.2 7.4 4..3 6.3 7.5 4.4 6.4 7.6 4.5 Maj 1 6.5 Min 1 7.7 4.6 Maj 4 6.6 7.8 4.7 Maj Ma/Mi 1/1 6.7 8.1 * “Yes” Compliant; “Min” Minor Non-Conformity; “Maj” Major Non-Conformity; “NA” not applicable, “NI” not inspected (only in case of surveillance assessments); “#NC: Number of Non-Conformities found
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Non Conformity Number <1>
RSPO – Criterion : RSPO Generic Vers.2013, PNC 2.1.1 Location RSPO Team Description of Finding/Objective Evidence:
Doctor of the clinic, Dr. Gemala as well as her nurses and midwife do not have the licenses as required by the Heath Ministry Regulation No. 441/KP2TSP-KL/36/2012.
Classification Major Minor Corrective action Deadline for implementation 60 days
Dr. Gemala has been replaced by Dr. Diana Kristina as company’s doctor and her license is still valid until December 10th, 2017 The license applications for nurses and midwife were applied to the Local Health Department in March 2015 and the Local Health Department has issued a Notification Letter stating that the license is still under process.
Review of corrective action There is an agreement between the company and Dr. Diana Kristiana as the company’s doctor and she has the license which valid until December 2017 The application letter for nurses and midwife is in the process and the Notification Letter about this which is issued by the Local Health Department is available
Closed: Yes No
The auditor has verified and accepted the corrective actions as well as the evidences so that all of the NCs can be closed
Lead Auditor or Auditor, 04.04.2015
Anita
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Non Conformity Number <2>
RSPO – Criterion : RSPO Generic Vers.2013, PNC 4.5.1 Location Sei Liput Estate Description of Finding/Objective Evidence: Beneficial plants in Division III and IV were not well maintained, there was no planting program of beneficial plant in 2015 for areas which have nettle caterpillars attacks history during 2014, for example in Division IV Block 95, 98, 101.
Classification Major Minor Corrective action Deadline for implementation 60 days To revise beneficial plant program in 2015 which cover planting program and maintenance program, recorded in revised HCV program 2015.
Review of corrective action The company has provided evidences: Submit revised HCV management program in 2015 which cover planting and maintenance of beneficial plants, for example in Division III Block 63 there will be planting program for Cassia Cobanensis (134 m), Turnera subulata (22 m), and Antigonon leptosus (22 m) starting from June 2015.
Closed: Yes No
The auditor has verified and accepted the corrective actions as well as the evidences so that all of the NCs can be closed Lead Auditor or Auditor, Date 04.04.2015 Wieke Savitri
Hasan Bisri
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Non Conformity Number <3>
RSPO – Criterion : RSPO Generic Vers.2013, PNC 4.6.2 Location Sei Liput Estate Description of Finding/Objective Evidence: The usage of pesticides such as Cymbush at the dosage 200 cc/ ha and Santador with the dosage 470 cc/ ha were not in accordance with Procedure SOC/PSM-7.10-13 that shall be 300 cc/ ha and 400 cc/ ha respectively, no verification from supervisor.
Classification Major Minor Corrective action Deadline for implementation 60 days
Assistant Manager will check and verify the usage of pesticides if the dosage was not in accordance with related procedure, the root cause of nonconfirmity because the foreman miscalculated the dosage of pesticides.
Review of corrective action The company has provided evidences: Verification of the pesticides usage by Assisstant Manager.
Closed: Yes No
. The auditor has verified and accepted the corrective actions as well as the evidences so that all of the NCs can be closed Lead Auditor or Auditor, Date 04.04.2015
Hasan Bisri Wieke Savitri
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Non Conformity Number <4>
RSPO – Criterion : RSPO Generic Vers.2013, PNC 4.6.5 Location Sei Liput Estate Description of Finding/Objective Evidence:
The new Opas Kantor named Ramli (Division III) whose job description was to mix pesticides had not been trained for restricted pesticides applicator training.
Classification Major Minor Corrective action Deadline for implementation : 60 days
1. To replace Ramli with old Opas Kantor named Anggan Wijaya who has certificate of restricted pesticides applicator. 2. Make a list of all pesticides applicators and certified restricted pesticides applicators, workers who doesn’t have the certificate can not work with restricted pesticides. Review of corrective action The company has provided evidences: Mutation letter of Ramli dated on February 28, 2015 that he is no longer work as Opas Kantor. List of the latest certified restricted pesticides applicator (59 workers in 2015).
Closed: Yes No
. The auditor has verified and accepted the corrective actions as well as the evidences so that all of the NCs can be closed
Lead Auditor or Auditor, Date 04.04..2015
Wieke Savitri Hasan Bisri
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Non Conformity Number <5> RSPO – Criterion : RSPO Generic Vers.2013, PNC 4.6.6 and 5.3.2, Mill andLocation estate Description of Finding/Objective Evidence:
The was no appropriate management and disposal of hazardous chemicals containers as chemical/pesticide containers was not properly disposed and used for other purposes. (PNC 4.6.6 Major and PNC 5.3.2/Minor))
Classification Major Minor Corrective action Deadline for implementation 60 days • The hazardous waste management procedure has been revised to set the management of used chemical containers. The used chemical containers must be identified and stored in licensed warehouse and disposed to licensed collector. Review of corrective action The company has provide the revision of the procedure of the waste management, SOC/DP/4.11-05 No. Rev : 04, indicated that the used chemical containers must be identified and stored in licensed warehouse and disposed to licensed collector. Closed: Yes
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Lead Auditor or Auditor, 13,07.2015
Anita
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Non Conformity Number <6>
RSPO – Criterion : RSPO Generic Vers.2013, PNC 4.6.11 Location Sei Liput Estate Description of Finding/Objective Evidence: Specific Medical check up result for pesticides applicators in 2014 were not available, for example in Division II, III dan IV.
Classification Major Minor
Corrective action Deadline for implementation 60 days
1. Submit a list of all pesticides applicators who had been examined in December 2014 2. Submit copy of specific medical record and justification from doctor.
Review of corrective action The company has provided evidences: .Copy of specific medical check up result of pesticides applicator, for example: Ms.Suhariani, the cholinesterase level was in normal standard (3980 – 10800 U/L), so that she can continue her job as pesticides applicator. The auditor has verified and accepted the corrective actions as well as the evidences so that all of the NCs can be closed
Closed: Yes No
- Lead Auditor or Auditor, Date 04.04.2015
Wieke Savitri Hasan Bisri
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Non Conformity Number <7>
RSPO – Criterion : RSPO Generic Vers.2013, PNC 4.7.2 Location Sei Liput Mill Description of Finding/Objective Evidence: As per procedure SOC/PSM/4.12 the OHS patrol shall be performed monthly. However there is no OHS patrol for hazardous waste storage in 2014 and for all area in January 2015
Classification Major Minor Corrective action Deadline for implementation 60 days OHS patrol has been performed for all area in March 2015 such as chemical warehouse, workshop, fuel storage tank, fertilizer warehouse, waste water pond etc. Hazardous waste warehouse also has been inspected in March 2015 for the following items according to the procedure: availability of hazardous symbol at containers, availability of emergency tools, availability of PPE, warehouse condition etc.
Review of corrective action The evidence of the OSH patrol and hazardous waste inspection are available so the NC can be closed.
Closed: Yes No
The effectiveness of the corrective action to be checked in the next ASA
Lead Auditor or Auditor, 13,07.2015
Anita
Anita
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Non Conformity Number <8>
RSPO – Criterion : RSPO Generic Vers.2013, PNC 4.7.6 Location Sei Liput Mill Description of Finding/Objective Evidence: There is no evidence that the high risk worker such as operator of kernel crush have performed the regular medical check up as required by Labor Ministry Regulation No.02/1980 and the company’s procedure No SOC/PSM/4.19, which is once a year. No evaluation of medical check up result by the doctor of the clinic for those have performed the medical check up
Classification Major Minor Corrective action Deadline for implementation Next ASA-2
Medical check up will be conducted for all workers annually according to the regulation and the annual measurement program. The result of the medical checkup will be evaluated by company’s doctor.
Review of corrective action The implementation of this NC will be checked in the next ASA
Closed: Yes No
.
Lead Auditor or Auditor, 13.07.2015
Anita
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Non Conformity Number <9>
RSPO – Criterion : RSPO Generic Vers.2013, PNC 5.2.4 Sei LiputLocation Estate Description of Finding/Objective Evidence:
No evaluation of HCV monitoring report which conducted monthly as feedback for next HCV Management Plan. HCV management plan in 2015 is the same as in 2014 Classification Major Minor Corrective action Deadline for :implementation Next ASA
Evaluation of HCV monitoring report will be conducted annually as stated in revised Procedure SOC/PSM/9.07
Review of corrective action The company has provided evidences: Submit revised Procedure SOC/PSM/9.07 The auditor has verified and accepted the corrective actions as well as the evidences so that all of the NCs can be closed
Closed: Yes No
.
Lead Auditor or Auditor, Date 04.04.2015
Hasan Bisri Wieke Savitri
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Non Conformity Number <10> RSPO – Criterion : RSPO Generic Vers.2013, PNC 5.3.3 Location Mill and estate Description of Finding/Objective Evidence:
The hazardous and toxic wastes was not identified and documented properly and the records was not available at the waste storage. For example there was no record for chemical container and contaminated rags.This is re-occurance from last audit and raised to Major NC. (PNC 5.3.3 Minor)
Classification Major Minor Corrective action Deadline for implementation 60 days All hazardous waste including medical waste, used chemical containers, contaminated rags etc have been identified in the form “Identifikasi dan Pengendalian Limbah (Waste Identification and Handling)” SOC/Form/4.11-01 and recorded in “Catatan Limbah B3 (Hazardous Waste Records)” SOC/Form/4.11-02.
Review of corrective action The identification of waste is available and the implementation of the corrective action will be checked in the next ASA Closed: Yes No The implementation of the corrective action will be counter checked during the annual surveillance audit. Lead Auditor or Auditor, 13.07.2015
Anita Masduki
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Non Conformity Number <11>
RSPO – Criterion :RSPO Generic Vers.2013, PNC 5.6.2 Location Sei Liput Mill and Estate Description of Finding/Objective Evidence: There is no evidence for the identification and reduction of greenhouse gas (GHG) emissions
Classification Major Minor Corrective action Deadline for implementation 60 days The company has provided the the identification and reduction plan to reduce or minimize GHG emissions according to the GHG emission reduction procedure/guidance (SOC/DP/4.11-08) : Identification of GHG emission i: Field emissions Land coversion: 30,580.23 tCO2eq Fertilizer: 363.22 tCO2eq NO2 from fertilizer: 476.43 tCO2eq Fuel consumption: 792.26 tCO2eq Crop sequestration: -28,979 tCO2eq Mill Emissions POME : 13,413.64 tCO2eq Fuel Consumption: 141.82 tCO2eq Grid Electricity utilization: 249.27 tCO2eq Export of electricity to housing: -268.46 tCO2eq Plan to reduce GHG emission: Maximizing the use of organic fertilizer EFB) to reduce the use of chemical fertilizer. Reduction of the use of pesticide Managing volume of waste water. Review of corrective action The corrective action was accepted and the evidences was adequate so the NC can be closed
Closed: Yes No
Lead Auditor or Auditor, 13.07.2015
Anita
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Non Conformity Number <12>
RSPO – Criterion : RSPO Generic Vers.2013, PNC 5.6.3 Location Sei Liput Mill and Estate Description of Finding/Objective Evidence:
There is no evidence that monitoring record of greenhouse gas (GHG) has been reported to RSPO
Classification Major Minor Corrective action Deadline for implementation Next ASA-2
The monitoring of GHG record year 2014 for the Socfin mills and plantations of Aek Loba, Negeri Lama, Sei Liput, and Mata Pao has been reported to RSPO Secretariat (attn Ms. Melissa Chin) dated July 3, 2015.
Review of corrective action The auditor has checked and verified the evidence and adequate so the NC can be closed
Closed: Yes No
To be checked and verified on the next ASA
Lead Auditor or Auditor,
Anita Masduki
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Non Conformity Number <13>
RSPO – Criterion :RSPO Generic Vers.2013, PNC 6.1.3 Location Sei Liput Unit Description of Finding/Objective Evidence:
Social impact monitoring results, which refers to the SOP No. SOC / PSM / 9.03, is not available (Indicator 6.1.3)
Classification Major Minor Corrective action Deadline for implementation 60 days The monitoring of Social Impact Assessment was conducted in January 2014 and the report was issued in March 2015. At time of the audit the report was still under process of issuance. The monitoring was conducted on the identified impacts both positive and negative: The results of positive impacts monitoring as follows: Public facilities provided by company such as mosques , churches, football fields, badminton court , volleyball court, clean water provision etc are still well maintained and used by communities for their needs. CSR activities were conducted in line with the defined CSR program 2014 such as road repair program, drainage repair program, school building repair program etc. Estate roads used by communities were still well maintained and used by communities for their access from villages to other places. The resources existing inside plantation were still utilized by communities such as grasses for livestock communities, fern leaves for their daily foods or for sale etc There was no negative impact found during monitoring.
Review of corrective action The monitoring of Social Impact Assessment report as evidence of this NC is available and adequate, so the NC can be closed.
Closed: Yes No
The implementation of the corrective action will be counter checked during the annual surveillance audit.
Lead Auditor or Auditor, 13.07.2015
Anita Masduki
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Non Conformity Number <14>
RSPO – Criterion :RSPO Generic Vers.2013, PNC 6.5.3 Location Sei Liput Unit Description of Finding/Objective Evidence:
During field assessment to Division IV, the lavatory of Mr.Nurhamid it was found not in good condition. Based on interview with housing staff (Krani Perumahan), Bpk Mulyono, there are some houses that do not have a standard lavatory. Workers build a simple lavatory.
Classification Major Minor Corrective action Deadline for implementation :Next ASA The corrective action plan: 1. Identified employees housing without lavatory 2. Prepare a lavatory building program as per above identification 3. Do realization of lavatory facility Review of corrective action The plan is there, but no implementation or action yet
Closed: Yes No
The implementation of the corrective action plan will be counter checked during the next annual surveillance audit.
Lead Auditor or Auditor, 13.07.2015
Anita Masduki
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Non Conformity Number <15>
RSPO – Criterion :RSPO Generic Vers.2013, 8.1 Location Sei Liput Mill and Estate Description of Finding/Objective Evidence: There is no evidences that the continuous improvement plan for these issues was available: Optimising the yield of the supply base Reduction plan in use of pesticides Environmental impacts management plan Waste reduction plan Pollution and greenhouse gas (GHG) emissions reduction plan Management and Monitoring of Social impacts
Classification Major Minor Corrective action Deadline for implementation : 60 days The company has provided the continuous improvement plan as follows: 1. Minimizing environmental impact a. Minimizing subsidence of peat land. Maintaining water level of peat land at 50 cm maximal from land surface to minimize subsidence of peat land. b. Protecting and preserving riparian of river. To protect the river from erosion and pollution from chemical treatment the following actions have been taken: No Chemical treatment such as spraying and fertilizing along river riparian buffer zone. Along river riparian are not planted by oil palm but planted by beneficial plant and other woody trees. c. Minimizing the use of chemicals. Controling caterpillar pest by using predator of Sycanus Leucomosus. This method is reducing the use of pesticide. 2. Minimizing GHG emission. a. Energy to run mill operation using electric from own electrical production including to operate lorry that previously using fossil fuel. b. The use of shell and fiber as boiler fuel. c. The use of EFB to reduce the use of chemical fertilizer. d. Controlling volume of waste water produced to minimize methane gas emission from waste water pond. e. Maintaining water level of peat land at 50 cm maximal from land surface to minimize exposure of CO2 from peat land. 3. Reduction of pesticide use. a. Reduction in the use of pesticide to control caterpillar pest. b. Reduction in the use of paraquat to control weeds. 4. Management and monitoring social impact. Management and monitoring social impact are conducted every year to ensure that the positive impacts are in place and the negative impacts are minimized. The positive impacts in 2014 are still maintained such as maintaining village road, pontoon as water transportation to cross river and other CSR programs and no negative impact arising during 2014. 5. Waste reduction Reduction of pesticide use will reduce waste of pesticide containers as well as reduction of chemical fertilizer use will reduce waste of fertilizer bags. Other reduction wastes are conducted by reuse of waste such the use of 100% fiber produced as boiler fuel; reuse of used pesticide container as container of pesticide solution and as knapsack sprayer. Reduction of the use of pesticide by using biological control of Sycanus Leucomosus as predator of caterpillar pest and using manual control for particular weed replacing paraquat use. Managing environmental impact by monitoring and measurement of emission and waste water produced by mill and plantation operation periodically. Waste reduction by reduction of material use such as pesticide use which is reducing used containers waste of pesticide. GHG emission reduction by maintaining water level of peat land, Maximizing the use of organic fertilizer to reduce the use of chemical fertilizer, controlling volume of waste water and optimizing the use fiber and shell as boiler fuel Managing social impact by monitoring the identified positive impacts periodically to make sure they are maintained well and monitoring the identified negative impacts to make sure they don’t happen again. Review of corrective action The auditor team has verified and accepted the evidences provided by the company.and the NC can be closed.
Closed: Yes No
The implementation of the corrective action will be counter checked during the next annual surveillance audit.
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Lead Auditor or Auditor, Date 20.06.2015
Hasan Bisri
Anita Masduki
4.4 Issues raised by stakeholders
Public consultation was held on February 10, 2015 at Sungai Liput Plantations. Consultations were conducted to the Village Head, Head of Kejuruan Muda, Police Head of Sector Kejuruan Muda (Polsek), Head of Millitary of Kejuruan Muda. There were 12 participants attending the public concultation (attendant list and photos are available).
Results of Public Consultation
The conclusion of the public consultation is 100% public consultation participants agreed when PT Socfindo Sei Liput Unit obtain the RSPO certificate. Appreciation received:
1. The existence of PT Socfin Sei Liput Unit gives positive benefits for the community, such as: employment opportunities for the local community, contributing to the improvement of public facilities etc.
2. PT Socfin Sei Liput has implemented several CSR programs to communities around the plantations, among others: a. road hardening b. provide teachers for Primary School of Seleleh c. support of clean water to surrounding communities d. scholarship for local elementary school and high school, surrounding Sei Liput e. reparation of Mosque’s lavatory
3. PT. Socfin Sei Liput has good communicated with the community and local goverment. Every year, the company conducts a stakeholder meeting to discuss many issues surrounding community.
4. PT. Socfindo Sungai Liput Unit has implemented a good plantation management. 5. PT. Socfin Sungai Liput Unit has applied the principles of good environmental management. Suggestion received: 1. Company is expected to provide guidance to the public on how to better manage oil palm plantations. 2. Companies are expected to provide skills training to unemployed at around the plantation 3. Society expects that the company adds a budget CSR programs, especially programs of economic development.
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Complaints received: In December 2014, the company had received complaints from the public. This happens because the company doing the restriction to the community to graze cows on the Socfin plantation. But the complaint was settled when the company and local people of Purwodadi had a discussion. The local people continue grazing their cows in Sei liput area with below conditions: 1). The villages can grazing in a high palm oil trees; 2) If in the area found solidto Head of Purwodadi Villagers No. SL/X/Bi/s95/2014. application, empty fruit buch and chemical application, then the grazing activity should be removed to other area without mentioned application. This is as per Manager Latter of Sei Liput .
Conclusion of the consultation: The conclusion of the public consultation is 100% public consultation participants agreed when Socfin Sei Liput obtain the RSPO certificate.
Audit team findings No findings found during public stakeholder consultation.
Company response and proposed action to be taken: 1. Company is willing to provide technical guidance to the public on the good management of palm oil plantations. 2. Company is willing to provide skills training for young people / unemployment around the plantation, in collaboration with local labor offices
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5 RSPO Supply Chain Certification The palm mill mentioned in the scope of the audit was audited against the requirements of the following: RSPO Supply Chain Certification Systems. November 2011. RSPO Supply Chain Certification Standard. November 2011.
Supply chain model for which the mill applies: Module D: Segregation A mill is deemed to be Identity Preserved (IP) if the FFB used by the mill are sourced from its own supply base certified to the RSPO Principles and Criteria (RSPO P&C). Certification for CPO mills is necessary to verify the volumes and sources of certified FFB entering the mill, the implementation of any processing controls (for example, if physical separation is used), and volume sales of RSPO certified products. A mill may be taking delivery of FFB from uncertified growers, in addition to those from its own certified land base. If a mill processes certified and uncertified FFB without physically separating the material then only Module E is applicable.
Module E: Mass Balance Certification for CPO mills is necessary to verify the volumes of certified and uncertified FFB entering the mill and volume sales of RSPO certified producers. A mill may be taking delivery of FFB from uncertified growers, in addition to those from its own certified land base. In that scenario, the mill can claim only the volume of oil palm products produced from processing of the certified FFB as MB.
5.1 Finding by criteria
Criterion Compliance Comments 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 Yes implementation of all the elements in these requirements This is the first time for SocfinSei Liput Mill to implement the Segregation model for its supply chain. The mechanism is described through the procedure No doc. SOC/PSM/9.10 Ed. 01 Rev. 03 dated December 01, 2014, namely Supply Chain Procedure for Segregation Scheme. The procedure is supported by the internal computerized system so called Harvest Plus System for input of FFB received, processed, and CPO dispatched. Currently the mill only produces CPO from their own estate. b) The name of the person having overall responsibility for Yes Socfin’s Head of Sustainability Department, Mr. Hasan Bisri,is the and authority over the implementation of these person who has overall responsibility for and authority over the requirements and compliance with all applicable implementation of these requirements to all POMs under Socfin. requirements. This person shall be able to demonstrate Since his working base is at the head office Medan, for Sei awareness of the facilities procedures for the LiputMill, he (through the Estate Manager) has appointed Mr. implementation of this standard. Abdul Muis to hold responsibility to input the FFB incoming and processed until CPO dispatched in the Harvest Plus System. Both Mr. Bisri and the mill officer are able to demonstrate awareness of the procedure and the implementation of the SCC standard. 1.2 The facility shall have documented procedures for Yes receiving and processing certified and non-certified FFBs. Socfin Sei Liput Mill has already documented procedures for receiving and processing certified FFBs through procedure No. Doc SOC/PSM/9.10. point 5.1.1-13, Ed. 01 Rev. 03 dated December 01, 2014, namely Supply Chain Procedure for Segregation Scheme
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2 Purchasing and goods in
2.1 The facility shall verify and document the volumes of Yes certified and non-certified FFBs received. The auditor has checked and verified that the facility has documented the volumes of FFBs received. The operator enters the data into the Harvest Plus system, and by using this system the number of FFBs received as well as CPO and PK were automatically calculated in real time. 2.2 The facility shall inform the CB immediately if there is a Yes projected overproduction. Socfindo has a mechanism to inform the CB by mail if there is a projected production. The Head of Sustainability is the responsible person for this and this is stated in the Supply Chain Certification Standard procedure, point 5.8.1. The auditor noted that there was no projected overproduction during 2014 period. 2.3 For facilities that are required to announce and confirm Yes According to Supply Chain Procedure for Segregation Scheme point trades in the RSPO IT system (all facilities up to the final 5.5.1, Head of Sustainability will announce and confirm each refinery and excl. traders) this shall include making certified product transaction through Shipping Announcements Shipping Announcements and Shipping Confirmations in and Shipping Confirmations in the RSPO e-trace system. the RSPO IT system on the level of each shipment. So far they have done transaction of certified product in RSPO e- trace as below
3 Record keeping 3.1 The facility shall maintain accurate, complete, up-to- Yes date and accessible records and reports covering all According to theSupply Chain Procedure for Segregation Scheme, records of aspects of these requirements. certified FFB received until CPO and PK dispatched are available and maintained properly. Auditor has checked and verified the 3.2. Retention times for all records and reports shall be at Yes records of FFB received and noted during 2014 period it was least five (5) years. properly maintained.As per SOP “SCCS file record keeping guidance” No. SOC/DP/9.09-03, records and reports will be kept for a five (5) years’ period. 3.3 Supply chain actors who take legal ownership of and Yes According to Supply Chain Procedure, point 5.5.1, the Head of physically handle RSPO certified sustainable oil palm Sustainability will register their transaction of the product in the products and who are part of the supply chain of RSPO RSPO e-trace system upon the moment of physical shipment. certified sustainable oil palm products before and up to the Auditor has checked and verified that the head of sustainability (final) refinery need to register their transaction in the can demonstrate his understanding on the registration process in RSPO IT system upon the moment of physical shipment. the RSPO e-trace. Actors who must register include mills and refineries. Actors who must not register include traders and all operators after the final refinery. Specific for Segregation Yes 3.4 The facility shall record and balance all receipts of The facility has recorded and balanced all receipts of certified RSPO certified FFB and deliveries of RSPO certified CPO, FFB and deliveries of certified CPO, and palm kernel on a three- PKO and palm kernel meal on a three-monthly basis. monthly basis. The company has the system on their computer data base. There were three CSPO’s transactions during 2014. Availibility of CSPO CSPO traded Certified CSPO Period product (as kg CPO) (as kg CPO) (as kg CPO)
Jan-March 4,403,379 4,079,760 17,507,000 Apr-June 5,269,521 5,163,280
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July-Sept 4,522,035 4,120,321
Oct-Dec 3,081,813 2,942,120
Total 16,445,174 16,305,481
.3.5. The following trade names should be used and Yes Auditor haschecked and verified into the sales documents of CPO specified in relevant documents, e.g. purchase and sales and PK dispatched such as Sales Contract and Delivery Order. contracts, e.g. *product name*/SG or Segregated. The The
b) All volumes of palm oil and palm kernel oil that are N/A delivered are deducted from the material accounting system according to conversion ratios stated by RSPO. c) The facility can only deliver Mass Balance sales from a N/A positive stock. However, a facility is allowed to sell short.
3.7. The following trade names should be used and N/A 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. 3.8. In cases where a mill outsources activities to an N/A independent palm kernel crush, the crush still falls under the responsibility of the mill and does not need to be separately certified. The mill has to ensure that the crush is covered through a signed and enforceable agreement. 4 Sales and good out 4.1. The facility shall ensure that all sales invoices issued for RSPO certified products delivered include the following Yes The facility has issued the invoice for RSPO certified products to information: the buyer (PT Musi Mas and Pacific Palmindo). The auditor noted that the invoice include the date on which the invoice was issued, a) The name and address of the buyer; Yes the name and address of the buyer, the Mass Balance model, and the quantity of the products (CPO) delivered, and other b) The date on which the invoice was issued; Yes reference documents such as Purchase Order and Delivery Order. c) A description of the product, including the applicable Yes supply chain model (Segregated or Mass Balance) d) The quantity of the products delivered; Yes e) Reference to related transport documentation. Yes
5. Processing (only for segregation)
5.1.The facility shall assure and verify through clear Yes Since the facility only processes the FFB from its own estate i.e procedures and record keeping that the RSPO certified Sei Liput Estate, and no FFB from other plantation, it is assured palm oil is kept segregated from non certified material that the RSPO certified palm oil will be kept segregated during including during transport and storage and be able to transport and storage.Through Supply Chain Procedure for demonstrate that is has taken all reasonable measures to Segregation Scheme, point 5.1.1-5.1.25, Ed. 01 Rev. 03 dated ensure that contamination is avoided. The objective is for December 01, 2014, it was clearly described that 100% of FFB 100 % segregated material to be reached. The systems received as well as CPO dispatched will be segregated physically should guarantee the minimum standard of 95 % and no contamination with non certified CPO will occur. segregated physical material*; up to 5 % contamination is allowed. (*The background of guaranteeing the minimum standard of 95% segregated physical material is due to
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physical intermixing of two product flows (certified and conventional oil) in processing, which is technically unavoidable. )
5.2. The facility shall provide documented proof that the Yes RSPO certified palm oil can be traced back to only certified segregated material.
5.3. In cases where a mill outsources activities to an N/A N/A since no outsourced mill activities applicable. All production independent palm kernel crush, the crush still falls under FFB processed into CPO and PK done by the company the responsibility of the mill and does not need to be resources. separately certified. The mill has to ensure that: The crush operator conforms to these requirements for segregation The crush is covered through a signed and enforceable agreement 6 Training
6.1.The facility shall provide the training for all staff as Yes Head of Sustainability Department, Mr. Hasan Bisri, has attended required to implement the requirements of the Supply the Supply Chain Certification System Training from RSPO in Chain Certification Systems September 2012. Auditor has checked and verified the training records and noted that he has good competence to do this job. He delivered this training to his staff of Sei Liput Mill on Oct 5, 2012. The attendants of the training included the weighbridge operator, administration and sales officers. Auditor has checked and verified the training records and found the record was well managed and the officers have good competence to do their job. 7 Claims
7.1. The facility shall only make claims regarding the use Yes of or support of RSPO certified palm oil that are in According to The Supply Chain Procedure for Segregation Scheme, it was compliance with the RSPO Rules for Communication and mentioned that the company will make claims regarding the use of support of Claims. RSPO certified palm oil that are in compliance with the RSPO Rules for Communication and Claims.
8 Complaints
8.1 The facility shall: Yes Through the Supply Chain Procedure for Segregation Scheme, a) keep a record of all complaints made known to the SOC/PSM/9.10. point 5.8.3, Ed. 01 Rev. 03 dated December 01, facility relating to a product’s compliance with requirements 2014, it was clearly mentioned that the facility will keep a record of of the RSPO SCCS and make these records available to all complaints relating to a product’s compliance with requirements the certification body when requested of the RSPO SCC and make these records available to the certification body. Yes b) take appropriate action with respect to such complaints According to this procedure, the facility will take appropriate action and any deficiencies found in products or services that as well with respect to such complaints and any deficiencies found affect compliance with the requirements for certification; in products or services that affect compliance with the requirements for certification Yes c) document the actions taken. No action taken since so far there is no complaint from the customer or buyer yet.
5.2 Noteworthy positive components and identified non conformances
5.2.1 Details of noteworthy positive components The company has appointed the Sustainability Manager to handle of day to day monitoring transaction of FFB from plantations and CPO products to the buyer. All staffs at the mill were well trained against the requirements of RSPO SCC even staffs who work at the FFB collection stations.
5.2.2 Detail of non conformity AUDIT OUTCOME
During this audit <0> Non-Conformities MAJOR
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6 Certified organization’s acknowledgement of internal responsibility
6.1 Date of next surveillance visit The next surveillance audit is scheduled within 9-12 months from certification date.
6.2 Date of closing non-conformities
All major NCs closed by 13.07.2015
All minor NCs to be closed by Next surveillance assessment
6.3 Formal sign-off of assessment findings
Name of Client: PT Socfin Indonesia – Sei Liput Mill
Client number: 45354
Certificate number: 75121
Certification Decision Date: 15/09/2015
Issued by TÜV NORD Integra
Address Statiestraat 164, 2600 Berchem, Antwerp, Belgium
Telephone +32 3 287 37 60
Fax +32 3 287 37 61
Email [email protected]
Website www.tuv-nord-integra.com
Scope
Name of Mill: Sei Liput Mill
Scope (Summary of suppliers of FFB): Sei Liput estate
Annual certified volume CPO: 17,687 ton
Annual certified volume PK: 3,084 ton
Annual volume FFB (in case of group 72,503 ton certification):
Type of certification: Single site : Yes /No ; Group Certification: Yes/No
Certifier (contact person) Marleen Delanoy
Signature:
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