Roundtable on Sustainable Palm Oil Public Summary Report Report no.: 824 502 16044 Certification assessment against the RSPO Principles & Criteria year 2013 RSPO Supply Chain Certification System year 2014 PT Perkebunan Nusantara III Sei Daun Palm Oil mill Labuhan Batu Selatan North Sumatera Date of assessment: June 01 to 05, 2015 Report prepared by: Aswan Hasibuan RSPO Lead Auditor) Certification decision by: Abdul Qohar (Director of TUV Rheinland Indonesia) Certification Body: PT TUV Rheinland Indonesia Menara Karya, 10 th Floor Jl. H.R. Rasuna Said Block X-5 Kav.1-2 Jakarta 12950, Indonesia Tel: +62 21 57944579 Fax: +62 21 57944575 www.tuv.com/id TABLE OF CONTENTS 1.0 SCOPE OF CERTIFICATION ASSESSMENT ....................................................... 3 1.1 National Interpretation Used .................................................................................................................. 3 1.2 Type of Assessment ............................................................................................................................... 3 1.3 Location and Maps ................................................................................................................................. 3 1.4 Description of Supply Base .................................................................................................................... 5 1.5 Dates of Plantings and Replanting Cycles ............................................................................................. 7 1.6 Other Achievements and Certifications Held ......................................................................................... 8 1.7 Area of Plantation (Total, Planted and Mature) ..................................................................................... 8 1.8 Organizational Information / Contact Person ......................................................................................... 8 1.10 Time Bound Plan for Other Management Units ................................................................................... 9 1.11 Compliance to Rules for Partial Certification ....................................................................................... 9 1.12 Plan for certification of associated smallholders ............................................................................... 10 1.13 Approximate Tonnages Certified ....................................................................................................... 10 1.14 Recommendation for Certification ..................................................................................................... 10 1.15 Date of Certificate Issued and Scope of Certificate ........................................................................... 11 2.0 ASSESSMENT PROCESS .................................................................................. 11 2.1 Certification Body ................................................................................................................................. 11 2.2 Qualifications of Lead Assessor and Assessment Team .................................................................... 11 2.3 Assessment Methodology .................................................................................................................... 12 2.4 Stakeholder Consultation and Stakeholders Contacted ...................................................................... 14 2.5 Date of Next Surveillance Visit ............................................................................................................. 14 3.0 ASSESSMENT FINDINGS ................................................................................... 14 3.1 Summary of Findings ........................................................................................................................... 14 3.2 Identified Non-conformances, Corrective Actions Taken and Auditors Conclusions.......................... 40 3.3 Noteworthy Positive Components ........................................................................................................ 46 3.4 Issues Raised by Stakeholders and Findings Pertaining to Issues..................................................... 46 3.5 Acknowledgements of Internal Responsibility and Formal Sign-Off by Client .................................... 51 APPENDICES ............................................................................................................ 52 Appendix 1: Details of Certificate ............................................................................................................... 52 Appendix 2: Certification Audit Plan ........................................................................................................... 54 Appendix 3: List of Abbreviations ............................................................................................................... 58 Appendix 4: List of Stakeholders Interviewed and Contacted ................................................................... 58 Appendix 5: Observations and Opportunities for Improvement ................................................................. 62 RSPO Certification Assessment Report - PT Perkebunan Nusantara III –Sei Daun Palm Oil Mill – North Sumatera Page 3 of 62 1.0 SCOPE OF CERTIFICATION ASSESSMENT 1.1 National Interpretation Used The operations of the palm oil mill(s) and its supply base of FFB were assessed against of the RSPO Princi- ples & Criteria year 2013. 1.2 Type of Assessment The main certification assessment was carried out on 1 and 2 estates under Sei Daun Palm Oil Mill owned i.e. Sei Daun estate and Gunung Tujuh estate by PT Perkebunan Nusantara III. 1.3 Location and Maps Table 1: GPS locations for all estates and mills included in certification assessment Name of mill / es- GPS locations Location tate Latitude Longitude Sei Daun Palm Oil Mill Meranti Village, Torgamba 1º 40’ 35” 100º 19’ 7” Sub District, South Labuhan Batu District, Propinsi Su- matera Utara 21464 Sei Daun estate Sei Meranti Village, Torgam- 1º 40’ 11” 100º 19’ 32” ba Sub District, South Labuhan Batu District Bukit Tujuh Estate Bukit Tujuh Village Torgamba 1º 34’ 9” 100º 13’ 58” Sub District, South Labuhan Ba- tu District Assessment location, located in Sei Daun Palm Oil Mill Figure 1. Location of Sei Daun Palm Oil Mill QMF: RSPO-007a-13(Rev.0) RSPO Certification Assessment Report - PT Perkebunan Nusantara III –Sei Daun Palm Oil Mill – North Sumatera Page 4 of 62 Figure 2. Sei Daun estate planted area and its conservation area. Figure 3. GunungTujuh estate and its conservation area. QMF: RSPO-007a-13(Rev.0) RSPO Certification Assessment Report - PT Perkebunan Nusantara III –Sei Daun Palm Oil Mill – North Sumatera Page 5 of 62 1.4 Description of Supply Base Sei Daun Palm Oil Mill has license capacity 60 tonnes/hour according to SPUP No. 350/771/DJ.Bun.5/XI/200. Sei Daun Palm Oil Mill is FFB supplied by two owned estates i.e. Sei Daun estate and Gunung Tujuh estate, an- other estate belong to PTPN 3 as mentioned on table 2 above, and supplied from out growers. There are 14 out growers supply to Sei Daun palm oil mill in year 2014 and 8 out growers in year 2015 with the composition as stated on the table below. Table 2: FFB Supply Information for Sei Daun Palm Oil Mill, year 2014 and 2015 * FFB supplied 2014 FFB supplied 2015 FFB Contributors Tonnes % Tonnes % Company owned es- tates: Sei Daun 92,033.790 47,478.180 62.12 Bukit Tujuh 52,341.390 16,885.450 59% 64,363.63 Sub Total 144,375.18 Others Company owned estate Torgamba Estate 499.40 712.540 Bandar Selamat 1,473.97 0 Aek Nabara Utara 331.05 0 Aek Nabara Selatan 1,181.37 0 Sei Kebara 40.29 0 6.51% 4.13% Sei Dadap 2,242.16 0 Sei Baruhur 188.30 0 Sei Meranti 8,127.40 3,792.610 Sei Sumut 1,040.54 0 4,505.15 Sub Total 15,124.48 17Independent out growers UD May 280.32 Mitra Sejahtera 54.76 Yohana 184.70 Karya Mandiri 17,230.60 Bima sakti 4,465.80 31.37% 36.87% Bekanta 6,386.56 2,062.18 Kartika 7,464.61 Karya Bersama 7,674.83 7,978.01 Torgama Karya 12,563.75 7,715.22 Zilenka 8,743.07 QMF: RSPO-007a-13(Rev.0) RSPO Certification Assessment Report - PT Perkebunan Nusantara III –Sei Daun Palm Oil Mill – North Sumatera Page 6 of 62 Waskita Jaya 3,479.39 1,830,66 Akbar sawit jaya 4,182.92 1,395.94 Makmur Jaya 84.21 Bina Rohil 118.89 KDKD 16,491.57 Ravi Prima 260.87 Lasinah 2,495.48 72,914.41 Sub Total 40,229.93 Total 232,414.07 100 109,098.71 100 Note: Supply from January to December 2014 & January to May 2015 (until audit time) Table 3: FFB Supply Information for Sei Daun Palm Oil Mill, year 2015 and 2016 * FFB Suplied year 2016 FFB supplied year 2015* FFB Contributors (projection) Tonnes % Tonnes % Company owned estates : Kebun Sei Daun 117,605.380 40.70 115,937.500 40.55 (KSDAN) Kebun Bukit Tujuh 58,675.700 20.30 94,935.000 33.20 (KBUTU) Sub Total 176,281.080 61.00 210,872.500 73.76 Others Company’s estate (if any) 42,383.00 Kebun Sei Meranti 14.67 0 0 4,567.84 Kebun Torgamba 1.58 0 0 Sub Total 46,950.840 16.25 0 0 Smallholder/Outgrower 65,692.950 22.74 75,000.000 26.23 Sub Total 65,692.950 22.74 75,000.000 26.23 QMF: RSPO-007a-13(Rev.0) RSPO Certification Assessment Report - PT Perkebunan Nusantara III –Sei Daun Palm Oil Mill – North Sumatera Page 7 of 62 Independent Ougrower Grand Total 288,924.870 100% 285,872.500 100% Note: * Additional data from client provided on March 2016. Table 4: CPO and PK production from Sei Daun palm Oil Mill in year 2014 FFB supplied in CPO PK FFB Contributor 2014 OER KER (Tonnes) (Tonnes) ( Tonnes ) Company owned estates: 144,375.18