SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES Rountable on Sustainable Palm Oil Annual Surveillance Assessment Report PT. Sumber Indah Perkasa – Sungai Buaya Mill , Lampung, Indonesia This annual surveillance assessment 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 Aidilfitri 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 14.05 1 of 70 SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES List of Contents Page A Scope of the Certification Assessment.................................................................... 4 A.1. National Interpretation Used ................................................................................... 4 A.2. Assessment Type (Estate and Mill) ........................................................................ 4 A.3. Location Map ......................................................................................................... 4 A.3.1. Data of the mill, certified tonnages (CPO, PK, FFB), and certified area ............... 5 A.4. Description of Supply Base..................................................................................... 5 A.4.1. General Description ................................................................................................ 5 A.4.2. Location of Supply Base ......................................................................................... 5 A.4.3. Statistic of Supply Base .......................................................................................... 6 A.5. Organizational Information and Contact Person ..................................................... 7 A.5.1 Audit against the Rules for Partial Certification ..................................................... 7 A.6. Date Certificate Issued and Scope of Certificate .................................................... 10 B. Assessment Process ................................................................................................ 11 B.1. Certification Body ................................................................................................... 11 B.2. Qualifications of the Assessment Team .................................................................. 12 B.2.1. Qualifications of the Lead Assessor and Assessment Team ................................... 12 B.3. Assessment Methodology ....................................................................................... 13 B.3.1. General Overview ................................................................................................... 13 B.4. Assessment Finding ................................................................................................ 18 B.4.1. Summary of How Stakeholder Consultation was Organized.................................. 18 B.4.2. RSPO Supply Chain Checklist ................................................................................ 42 B.4.3. Status of Previously Minor Finding & Observation ............................................... 45 B.4.4. Stakeholder Consultation ........................................................................................ 49 B.5. Date of Next Surveillance Visit .............................................................................. 50 C. Certified Organization’s Acknowledgement of Internal Responsibility ................ 51 C.1. Formal Sign-Off of the Assesssment Findings ....................................................... 51 C.2. Statement by the Certifier Body on Behalf of PT. Sucofindo SBU-SICS .............. 52 Appendix 1 List of Abbreviation .......................................................................................... 53 Appendix 2 Map ................................................................................................................... 55 Sucofindo ICS FRM 14.05 2 of 70 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 Buaya Mill located at Mesuji Timur, Mesuji Regency – Lampung, INDONESIA A.3. Location map Please see Appendix 1 : the details of estate maps of 1. Overlay Map of Sungai Buaya Estate (SBYE), Gedung Aji Lama (GALA) Estate and Mesuji (MSJA) Estate, 2.Map of Rivers, 3.HCV , 4.Topography, 5. Planting Year Sumatera Island - Indonesia Sucofindo ICS FRM 14.05 3 of 70 SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES A. 3. 1. Data of the mill, certified tonnages (CPO, PK, FFB), and certified area Name Of Mill Sungai Buaya Mill PT. Sumber Indah Perkasa Location Address Desa Talang Batu, Kecamatan Mesuji Timur, Kabupaten Mesuji – Lampung GPS Reference Latitude : 4o07’ 43.00” S Longitude : 105o26’ 19.82” E Capacity 60 MT/Hour Actual Production (2014) CPO : 56,444.32 mt ; PK : 13,096.67 mt FFB : 255,932.87 mt Certified tonnages claimed CPO : 56,444.32 mt ; PK : 13,096.67 mt FFB : 255,932.87 mt Certified Area (based on IUP) 15,273.70 ha Planted Area 14,993.40 ha Certified tonnages sold *) CPO : 0 mt ; PK : 0 mt Certified tonnages purchased CPO : 0 mt ; PK : 0 mt Note *) So far, CPO is sold under ISCC Scheme Sucofindo ICS FRM 14.05 4 of 70 SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES 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 Buaya Mill is supplied from : 1. Sungai Buaya Estate (SBYE)- own estate, 2. KKPA Gedung Aji Lama (GALA) Estate - smallholder 3. KKPA Mesuji (MSJA) Estate - smallholder. Total supplied FFB from these three (3) estates are 256,011.252 MT. 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. A. 4. 2. Location of the supply base GPS No. Estate Name Location Latitude Longitude 1 Sungai Buaya Estate Desa Talang Batu, (SBYE) Kecamatan Mesuji 4o09’44.86” S 105o26’09.23”E Timur, Kabupaten Mesuji – Lampung 2 KKPA Gedung Aji Lama Desa Paduan Rajawali, (GALA) Estate– Plasma Kecamatan Meraksa Aji, 4o 17’23.84” S 105o 25’54.68”E Kabupaten Tulang Bawang – Lampung 3 KKPA Mesuji (MSJA) Desa Brabasan, Estate– Plasma Kecamatan Tanjung 3o 58’40.74” S 105o 20’50.75” E Raya, Kabupaten Mesuji – Lampung Sucofindo ICS FRM 14.05 5 of 70 SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES A. 4. 3. Statistic of supply base Estate Planting Age/ Estimated Estimated No. Planted Area Name Year Planting Year FFB/Year CPO/Year 1 Sungai 1991 24 513.14 8,168.128 1,801.39 Buaya Estate 1992 23 2,720.94 48,930.098 10,790.89 (SBYE) 1993 22 1,118.24 17,392.164 3,835.83 1994 21 402.54 5,961.910 1,314.82 2000 15 30.66 520.710 114.84 SUB TOTAL 4,785.52 80,973.01 17,857.77 2 KKPA 1995 20 250.00 4,662.280 1,028.88 Gedung Aji Lama 1996 19 2,833.00 24,146.090 5,328.58 (GALA) 1997 18 1,313.00 21,798.520 4,810.51 Estate – Plasma 1998 17 606,00 8,334.680 1,839.30 SUB TOTAL 5,002 58,941.570 13,007.27 3 KKPA 1995 20 149.75 3,156.570 695.96 Mesuji (MSJA) 1996 19 2,631.25 59,017.080 13,011.99 Estate – 1997 18 1,891.88 42,373.320 9,342.40 Plasma 1998 17 533.00 11,470.230 2,528.94 SUB TOTAL 116,017.20 25,579.29 TOTAL 255,932.87 56,444.32 Sucofindo ICS FRM 14.05 6 of 70 SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES A. 5. Organizational Information and Contact Person PT. SUMBER INDAH PERKASA – Sungai Buaya Mill 1 Company Name (SBYM) 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 A. 5. 1. Audit Again the Rules for Partial Certification 1. Assessment agenda Date Location Agenda 16 Maret 2015 PT. Sumber Indah Perkasa During ASA I to verify legal documents, - Sungai Buaya Mill HCV, Labor Union and land conflict Kec. Mesuji Timur within the GAR group Kabupaten Mesuji Lampung Indonesia 2. Audit Team Findings in Correlation to the Rules Partial Certifications a. The Organization is a member of RSPO PT. Sumber Indah Perkasa 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