SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES RSPO Assessment Report Annual Surveillance Assessment Report PT. Sumber Indah Perkasa – Sungai Merah Mill, Lampung, Indonesia This report has been prepared in accordance with RSPO requirements and the information included is the result of a full RSPO assessment of the Mills and supply base as included in the scope of the certificate. Prepared by: Nuzwardy Sjahwil (Lead Assessor) Certification decision made by :Triyan Aidilfiitri PT. SUCOFINDO (Sucofindo International Certification Services – SICS) Graha Sucofindo B1 Floor, Jl. Raya Pasar Minggu Kav. 34, Jakarta 12780 Indonesia Contact Person : Tuti Suryani Sirait Phone: (62-21) 7983666: Fax : (62-21) 7987015 Email: [email protected] Sucofindo ICS FRM 3.04 Issue 04 Rev. 6 1of 73 SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES List of Contents Page A Scope of the Certification Assessment .................................................................. 3 A.1. National Interpretation Used ................................................................................ 3 A.2. Assessment Type (Estate and Mill) ...................................................................... 3 A.3. Location Map ...................................................................................................... 3 A.3.1. Location Address of the Mill and Approximate Tonnages Certified (CPO and Mill ) ................................................................................................... 6 A.4. Description of Supply Base .................................................................................. 6 A.4.1. General Description ............................................................................................. 6 A.4.2. Location of Supply Base ...................................................................................... 7 A.4.3. Statistic of Supply Base........................................................................................ 7 A.5. Organizational Information and Contact Person ................................................... 8 A.5.1 Audit Against the Rules for Partial Certification .................................................. 9 A.6. Date Certificate Issued and Scope of Certificate ................................................... 13 B. Assessment Process.............................................................................................. 14 B.1. Certification Body ................................................................................................ 14 B.2. Qualifications of the Assessment Team ................................................................ 14 B.2.1. Qualifications of the Lead Assessor and Assessment Team .................................. 14 B.3. Assessment Methodology..................................................................................... 15 B.3.1. General Overview ................................................................................................ 15 C. Assessment Findings ............................................................................................ 20 C.1. Summary of the Findings by Criteria .................................................................... 20 C.2. Supply Chain Modul E : CPO Mill Mass Balance ................................................ 46 C.3. Status of Previous Non-conformities ……………………………………………...50 C.4. Issues Raised by Stakeholders……………………………………………………..54 D. Certified Organization’s Acknowledgement of Internal Responsibility ................. 55 D.1. Formal Sign-Off the Assessment Findings .......................................................... 55 D.2. Statement by the Certifier Body on Behalf of PT. Sucofindo SBU-SICS .............. 56 D.3. Date of Next Surveillance Visit………………………………………………… 56 List of Abbreviation ........................................................................................................... 57 Attachment 1 - MAP .......................................................................................................... 59 Attachment 2 - NCR .......................................................................................................... 64 Sucofindo ICS FRM 3.04 Issue 04 Rev. 6 2of 73 SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES A. Scope of the Certification Assessment A. 1. National Interpretation Used The management of the Palm Oil Mill(s) and associated suppliers of Fresh Fruit Bunches (FFB) were assessed for compliance against the International RSPO criteria as interpreted and endorsed for Indonesia 2008, RSPO Principle and Criteria 2013 Generic and RSPO Certification Systems and RSPO Suply Chain Certification Systems 2014 A. 2. Assessment Type (Estate and Mill) Certification Unit : PT. Sumber Indah Perkasa – Sungai Merah Mill located at Gedung Aji Baru, Tulang Bawang Regency – Lampung, INDONESIA A.3. Location map Please see Appendix 1 : the details of estate maps of 1.Overlay Map of Sungai Merah Estate (SMRE) and KKPA Gedung Aji Baru (GABA) Estate, 2.Map of Rivers, 3. HCV, 4.Topography Sucofindo ICS FRM 3.04 Issue 04 Rev. 6 3of 73 SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES Sumatera Island - Indonesia Sucofindo ICS FRM 3.04 Issue 04 Rev. 6 4of 73 SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES Sucofindo ICS FRM 3.04 Issue 04 Rev. 6 5of 73 SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES A. 3. 1. Location address of the mill and approximate tonnages certified (CPO and PK) 1 Name of Mill Sungai Merah Mill PT. Sumber Indah Perkasa 2 Location address Desa Sidomukti Batu, Kecamatan Gedung Aji Baru, Kabupaten Tulang Bawang - Lampung 3 GPS Reference Latitude: 4o 13’ 06.40” LS Longitude: 105o 35’ 19.57” BT 4 Actual Production (2014)*) CPO : 39,221.62 PK : 9,179.98 FFB : 185,828.10 5 Certified tonnage claimed**) CPO : 36,829.10 PK : 8,617.01 FFB : 174,510.87 6 Certified area 8,551.76 Ha 7 Planted area 8,450.47 Ha 8 Certified Tonnages Sold *) CPO : 0 mt ; PK : 0 mt 9 Certified tonnages purchased CPO : 0 mt ; PK : 0 mt Note : *) This data (Annual output) include data from non-certified suppliers **) So far, CPO is sold under ISCC scheme A.4. Description of Supply Base A. 4. 1. General description PT. Sumber Indah Perkasa operates 2 palm oil mills under PT Sumber Indah Perkasa, named PT Sumber Indah Perkasa - Sungai Buaya Mill (SBYM) and PT Sumber Indah Perkasa – Sungai Merah Mill (SMRM). The raw material/FFB for PT Sumber Indah Perkasa - Sungai Merah Mill (SMRM) is supplied from 1. Sungai Merah Estate (SMRE), and 2. KKPA Gedung Aji Baru (GABA) Estate - Smallholder. Sucofindo ICS FRM 3.04 Issue 04 Rev. 6 6of 73 SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES Totally supplied FFB from these two (2) estates are 174,510.87 MT. There are outgrowers supplied for 11,317.23 MT and totally Mill operates for 185,828.10 Mt FFB from all suppliers and estates. All estates are operated under one management of PT. Sumber Indah Perkasa. All estates located in Lampung, INDONESIA. PT. Sumber Indah Perkasa is a member of RSPO and they are implementing a program to achieve RSPO Certified Palm Oil for all its production. There is no plan to expand the land holding and therefore Principles 7 is not applicable to this assessment. 3. Location of the supply base GPS No. Estate Name Location Latitude Longitude 1 Sungai Merah Estate Desa Sidang Gunung Tiga, Kecamatan Rawa 4o 12’ 00.73” 105o 38’ 05.14” Jitu Utara, Kabupaten Mesuji – Lampung 2 Gedung Aji Baru KKPA Desa Sidoharjo, Kecamatan Penawartama, 4o 09’ 44.86” 105o 26’ 09.23” Kabupaten Tulang Bawang – Lampung 4. Statistic of supply base No. Estate Planting Area/Planting Age/Planting Estimated Estimated Name Year Year Year FFB/Year CPO/Year 1 Sungai 1991 503,03 24 11,234.572 2,374.22 Merah 1992 513,19 23 9,716.506 2,053.40 Estate 1993 1,230.45 22 19.595,832 4.141.32 1994 834.23 21 13,537.612 2,860.93 Sucofindo ICS FRM 3.04 Issue 04 Rev. 6 7of 73 SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES 1996 452.91 19 9,426.375 1,992.09 2000 266.41 15 4,093.055 864.99 2001 19.95 14 401.906 84.99 2004 124.55 11 2,707.992 572.28 2 Gedung 1995 3.115,25 20 71,612.140 15,099.03 Aji Baru 1996 605,00 19 14,266.920 3,008.10 KKPA 1997 377,00 18 8,900.770 1,876.68 1998 71,00 17 1,839.210 387.79 1999 337,50 16 7,177.980 1,513.44 A. 5. Organizational Information and Contact Person PT. SUMBER INDAH PERKASA – Sungai Merah Mill 1 Company Name (SMRM) 2 Personal Contact Ismu Zulfikar 3 Vice Management Humala Sinaga Sinarmas Land Plaza Menara 2 Lantai 30, Jalan M. H. 4 Company Address Thamrin No. 51, Jakarta, Indonesia 5 Company Status PMDN 7 Phone/ Fax 021 50338899 8 E-mail [email protected] 9 Website www.smart-tbk.com 10 RSPO membership number 1-0096-11-000-00 Sucofindo ICS FRM 3.04 Issue 04 Rev. 6 8of 73 SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES A. 5. 1. Audit Again the Rules for Partial Certification 1. Assessment agenda (partial Certification Audit) Date Location Agenda 16 Maret 2015 PT. Sumber Indah Perkasa During ASA I to verify legal documents, HCV, Labor Union and land conflict - Sungai Buaya Mill within the GAR group Kec. Mesuji Timur Kabupaten Mesuji Lampung Indonesia 2. Audit Team Findings in Correlation to the Rules Partial Certifications a. The Organization is a member of RSPO PT Kresna Duta Agroindo has confirmed membership of the RSPO with no. 1- 0096-11-000-00 b. A Time Bound Plan for achieving certification within relevant entities ~ Time bound The progress of time bound below was based on the explanation of Div. Head Sustainability no. 030/EL/SMART-RSPO CB/II/2015 on 10 February 2015 and memorandum