PT. MUTUAGUNG LESTARI ASSESSMENT REPORT Roundtable on Sustainable Palm Oil Certification R S P O []Stage-1 [ ] Stage-2 [√] Surveillance [ ] Re-Certification Name of Management : Betung Factory – PT Laguna Mandiri, Sime Darby Plantation Sdn Bhd Organisation Plantation Name : Sekayu Estate and Betung Estate Location : Village of Betung, Sub District of Pamukan Utara, District of Kotabaru, Province of Kalimantan Selatan, Indonesia Certificate Code : MUTU-RSPO/035 Date of Certificate Issue : 01 April 2014 Date of License Issue : 01 April 2017 Date of Certificate Expiry : 31 March 2019 Date of License Expiry : 31 March 2018 Assessment PT. Mutuagung Lestari Reviewed Approved Assessment Date Auditor by by Ardiansyah (Lead Auditor), Rudi Octo H.P.N. Tony ASA-3 30 January – 3 February Ramdani, Mohamad Amarullah, 2017 Nainggolan Arifiarachman Afiffuddin Assessment Approved by MUTUAGUNG LESTARI on: ASA-3 13 April 2017 PT Mutuagung Lestari • Raya Bogor Km 33,5 Number 19 • Cimanggis • Depok 16953• Indonesia Telephone (+62) (21) 8740202 • Fax (+62) (21) 87740745/6•Email: [email protected] • www.mutucertification.com MUTU Certification Accredited by Accreditation Services International on March 12th, 2014 with registration number RSPO-ACC-007 PT MUTUAGUNG LESTARI ASSESSMENT REPORT TABLE OF CONTENT FIGURE ................................................................................................................................................................ 1 Figure 1. Location Map of PT Laguna Mandiri ...................................................................................................... 1 Figure 2. Operational Map of Sekayu Estate and Betung Estate PT Laguna Mandiri .......................................... 2 Glossary ................................................................................................................................................................ 3 1.0 SCOPE OF THE CERTIFICATION ASSESSMENT ............................................................................................. 5 1.1 Assessment Standard Used ................................................................................................................................. 5 1.2 Organisation Information ....................................................................................................................................... 5 1.3 Type of Assessment .............................................................................................................................................. 5 1.4 Locations of Mill and Plantation ............................................................................................................................ 5 1.5 Description of Area Statement .............................................................................................................................. 6 1.6 Planting Year and Cycles ...................................................................................................................................... 6 1.7 Description of Mill and Supply Base ..................................................................................................................... 7 1.8 Estimate Tonnage of Certified Product.................................................................................................................. 7 1.9 Other Certifications ............................................................................................................................................... 8 1.10 Time Bound Plan .................................................................................................................................................. 8 2.0 ASSESSMENT PROCESS ................................................................................................................................. 15 2.1 Assessment Team ............................................................................................................................................... 15 2.2 Assessment Methodology, Assessment Process and Locations of Assessment ................................................ 15 2.3 Stakeholder Consultation and Stakeholders Contacted ...................................................................................... 17 2.4 Determining Next Assessment ............................................................................................................................ 17 3.0 ASSESSMENT FINDINGS ................................................................................................................................. 18 3.1 Summary of Assessment Report of the RSPO Certification ............................................................................... 18 3.2 Summary of Assessment Report of Supply Chain Requirements ....................................................................... 44 3.3 Conformity Checklist of Certificate and Logo Use ............................................................................................... 48 3.4 Summary of RSPO Partial Certification .............................................................................................................. 49 3.5 Identification of Findings, Corrective Action, Observations, OFI and Noteworthy Positive Components ............ 52 3.6 Summary of Arising Issues from Public, Management and Auditor Response ................................................... 70 4.0 CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY ......................... 74 4.1 Formal Sign-off of Assessment Findings ............................................................................................................. 74 APPENDICES .................................................................................................................................................... 75 Appendix 1. List of Stakeholder Contacted in the RSPO Certification Process ................................................. 75 Appendix 2. Assessment Program ..................................................................................................................... 76 SPO – 4006a.7 Prepared by Mutuagung Lestari for Betung Factory – PT Laguna Mandiri, Sime Darby Plantation Sdn Bhd PT MUTUAGUNG LESTARI RSPO ASSESSMENT REPORT FIGURE Figure 1. Location Map of PT Laguna Mandiri SPO – 4006a.7 Page1 Prepared by Mutuagung Lestari forBetung Factory – PT Laguna Mandiri, Sime Darby Plantation Sdn Bhd PT MUTUAGUNG LESTARI RSPO ASSESSMENT REPORT Figure 2. Operational Map of Sekayu Estate and Betung Estate PT Laguna Mandiri SPO – 4006a.7 Page2 Prepared by Mutuagung Lestari for Betung Factory – PT Laguna Mandiri, Sime Darby Plantation Sdn Bhd PT. MUTUAGUNG LESTARI RSPO ASSESSMENT REPORT Glossary AKAD : Antar Kota Antar Daerah (inter-area worker) AMDAL : Analisis Mengenai Dampak Lingkungan (Social and Environmental Impact Assessment) ASA : Annual Surveillance Assessment BPJS : Badan Penyelenggara Jaminan Sosial (Social Assurance of Labor) BPN : Badan Pertanahan Nasional (National Land Agency) BOD : Biological Oxygen Demand CBD : Convention Biodiversity on Diversity CH : Certificate Holder CPO : Crude Palm Oil CSR : Corporate Social Responsibility EFB : Empty Fruit Bunch FIFO : First in First Out FFB : Fresh Fruit Bunch FPIC : Free Prior Informed and Consent GHG : Greenhouse Gas HCV : High Conservation Value HGB : Hak Guna Bangunan (Land Use Building) HGU : Hak Guna Usaha (Land Use Title) HIRAC : Hazard Indentification, Risk Assessment and Control HRM : Human Resources Management IPM : Integrated Pest Management ISCC : International Sustainability & Carbon Certification ISO : International Standarization Organization ISPO : Indonesian Sustainable Palm Oil KER : Kernel Extraction Rate LMI : Laguna Mandiri (PT) LUCA : Land Use Change Analisys MS : Management System MSDS : Material Safety Data Sheets NGO : Non Government Organization OER : Oil Extraction Rate OHSAS : Occupational Health and Safety Assessment Series P2K3 : Panitia Pelaksana Kesehatan dan Keselamatan Kerja (OHS Guiding Committee) P&D : Pest and Disease PIC : Person In Charge PK : Palm Kernel POM : Palm Oil Mill POME : Palm Oil Mill Effluent PPE : Personal protective equipment R&D : Research & Development RaCP : Remediation and Compensation Procedure RKL/RPL : Rencana Pengelolaan Lingkungan / Rencana Pemantauan Lingkungan (Environment Management and Monitoring Plan) RSPO : Roundtable Sustainable Palm Oil RTE : Rare, Threatened or Endangered SCCS : Supply Chain Certification Standard SIA : Social Impact Assessment SHE : Safety Health and Environment SOP : Standart Operating System SOU : Strategic Operational Unit WTP : Water Treatment Plant SPO – 4006a.7 Page 3 Prepared by Mutuagung Lestari for Betung Factory – PT Laguna Mandiri, Sime Darby Plantation Sdn Bhd PT. MUTUAGUNG LESTARI RSPO ASSESSMENT REPORT WWTP : Waste Water Treatment Plant YASBI : Yayasan Kelapa Sawit Berkelanjutan Indonesia SPO – 4006a.7 Page 4 Prepared by Mutuagung Lestari for Betung Factory – PT Laguna Mandiri, Sime Darby Plantation Sdn Bhd PT. MUTUAGUNG LESTARI RSPO ASSESSMENT REPORT 1.0 SCOPE OF THE CERTIFICATION ASSESSMENT 1.1 Assessment Standard Used Indonesian National Interpretation of RSPO Principles and Criteria 2013, September 2016 RSPO Supply Chain Certification Standard For organizations seeking or holding certification Adopted by the RSPO Board of Governors on 21 November 2014 (Module D for CPO Mill) 1.2 Organisation Information PT Laguna Mandiri, subsidiary of Sime Darby 1.2.1 Organisation name listed in the certificate