PUBLIC SUMMARY REPORT RSPO SECOND ANNUAL SURVEILLANCE ASSESSMENT (ASA2) PT INTI INDOSAWIT SUBUR – TUNGKAL ULU GROUP AND SCHEME SMALLHOLDERS Jambi Province, Sumatra, INDONESIA Report Author: Haeruddin Tahir – September 2014 BSI Group Singapore Pte Ltd (Co. Reg. 1995 02096‐N) PT. BSI Group Indonesia 1 Robinson Road Menara Bidakara 2, 17th Floor Unit 5 AIA Tower #15‐01 Jl. Jend. Gatot Subroto Kav. 71‐73 Singapore 048542 Komplek Bidakara, Pancoran Tel +65 6270 0777 Jakarta Selatan 12870 ‐ Indonesia Fax +65 6270 2777 Tel +62 21 8379 3174 ‐ 77 www.bsigroup.sg Fax +62 21 8379 3287 Aryo Gustomo: [email protected] TABLE of CONTENTS page № SUMMARY......................................................................................................................................................... 1 Abbreviations Used........................................................................................................................................... 1 1.0 SCOPE OF CERTIFICATION ASSESSMENT.............................................................................................. 1 1.1 National Interpretation Used...................................................................................................................... 1 1.2 Certification Scope...................................................................................................................................... 1 1.3 Location and Maps..................................................................................................................................... 1 1.4 Description of Supply Base......................................................................................................................... 1 1.5 Date of Plantings and Age profile............................................................................................................... 2 1.6 Other Certifications Held............................................................................................................................ 2 1.7 Organisational Information / Contact Person............................................................................................. 2 1.8 Time Bound Plan for Other Management Units.......................................................................................... 2 1.9 Area of Plantation....................................................................................................................................... 5 1.10 Approximate Tonnages Certified.............................................................................................................. 5 1.11 Date Certificate Issued and Scope of Certificate....................................................................................... 5 2.0 ASSESSMENT PROCESS........................................................................................................................ 5 2.1 Certification Body........................................................................................................................................ 5 2.2 Qualifications of the Lead Assessor and Assessment Team........................................................................ 5 2.3 Assessment Methodology, Programme, Site Visits..................................................................................... 6 2.4 Stakeholder Consultation and List of Stakeholders Contacted................................................................... 6 2.5 Date of Next Surveillance Visit.................................................................................................................... 6 3.0 ASSESSMENT FINDINGS...................................................................................................................... 6 3.1 Summary of Findings – Existing Certified Units.......................................................................................... 7 3.2 Summary of Findings – Scheme Smallholder..............................................................................................16 3.3 Detailed Identified Nonconformities, Corrective Actions and Auditor Conclusion.....................................23 3.4 Noteworthy Positive Components..............................................................................................................27 3.5 Issues Raised by Stakeholders and Findings with Respect to Each Issue....................................................27 4.0 CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY.............................. 28 4.1 Date of Closing Nonconfirmities (Major and Minor)................................................................................. 28 4.2 Acknowledgement of Internal Responsibility and Formal Sign‐off of Assessment Findings.....................28 LIST of TABLES 1 GPS Location of Mills ...................................................................................................................... 1 2 Tungkal Ulu Mill FFB Supply Details ............................................................................................. 2 3 Planting Years ............................................................................................................................. 2 4(a) Estate and Area of Palms............................................................................................................. 5 4(b) Scheme Smallholder Numbers and Area of Palms ....................................................................... 5 5 Tungkal Ulu Approximate tonnages of FFB, CPO and PK .............................................................. 5 LIST of FIGURES 1 Location Maps ........................................................................................................................ .... 3‐4 List of Appendices A Time Bound Plan B RSPO Certificate Details C Assessment Programme D List of Stakeholders Contacted E Supply Chain Assessment RSPO Annual Surveillance Assessment (ASA2) – PT. Inti Indosawit Subur ‐ Tungkal Ulu POM and Supply Base Page 1 SUMMARY PPKS Pusat Penelitian Kelapa Sawit PT IIS PT Inti Indosawit Subur BSI has conducted the second annual surveillance R&D Research and Development assessment of PT Inti Indosawit Subur (PT IIS) Tungkal RKL Rencana Pengelolaan Lingkungan Ulu Palm Oil Mill and supply base located in Jambi (Environmental Management Plan) Province, Sumatera, Indonesia. PT. IIS – Tungkal Ulu RPL Rencana Pemantauan Lingkungan comprising one mill, one owned estate and ten scheme (Environmental Monitoring Plan) smallholders (KUD) SEIA Social & Environmental Impact Assessment SOP Standard Operation Procedure BSi concludes that PT Inti Indosawit Subur – Tungkal Ulu SPSI All Indonesian Workers Union group operations and the scheme smallholders comply with the requirements of RSPO Certification System June 2007 (revised March 2011) including Annex 4: 1.0 SCOPE OF SURVEILLANCE ASSESSMENT Procedures for Annual Surveillance, RSPO Principles & Criteria: November 2007; Indonesia National Interpretation of RSPO P&C, 2008; and Indonesian 1.1 NATIONAL INTERPRETATION USED National Interpretation of RSPO P&C for Scheme Smallholder 2009. The palm oil mill was also assessed against the RSPO Supply Chain Certification Standard for The operations of the mill and their supply bases were the compliance to the requirement for the CPO mills assessed against the RSPO INA‐NIWG: May 2008 and (RSPO SCCS: November 2011). It is noted that the mill INA‐SWG: 2009 of the RSPO Principles and Criteria: have implemented Mass Balance (Module E – Mass 2007; RSPO Certification System June 2007 (revised Balance) of RSPO SCCS requirement to ensure March 2011) including Annex 4: Procedures for Annual traceability of the incoming and out‐going product. Survaillance, and RSPO Supply Chain Certification Standard: November 2011, Module E – CPO Mills: Mass BSI recommends the continuation of PT. IIS ‐ Tungkal Ulu Balance. which consist of Tungkal Ulu mill, Tungkal Ulu estate and Scheme Smallholders to be extended as a producer of RSPO certified sustainable palm oil. 1.2 CERTIFICATION SCOPE ABBREVIATIONS USED The scope of Certification covers one (1) Palm Oil Mill AMDAL Analisis Mengenai Dampak Lingkungan and the supply base comprising one (1) company’s B3 Hazardous waste owned Estate and ten (10) cooperatives of Scheme BOD Biological Oxygen Demand Smallholder BPN Badan Pertahanan Nasional CD Community Development CLA Collective Labour Agreement 1.3 Location and Maps CPO Crude Palm Oil The Tungkal Ulu Group Mill, Estate and Scheme CSR Corporate Social Responsibility smallholders are located in Tanjung Jabung District, DPPL Dokument Pengelolaan dan Pemantauan Jambi Province, Indonesia (Figure‐1). The GPS location of Lingkungan Hidup (Environment management the mills is shown in Table 1. And monitoring document) EFB Empty Fruit Bunch Table 1: Mills GPS Locations EMS Environmental Management System FFB Fresh Fruit Bunch MILL Longitude Latitude GPS Global Positioning System Tungkal Ulu E 102°58’53” S 01°18’01” HCV High Conservation Value (Capacity: 60 t/hr) HGU Hak Guna Usaha HO Head Office 1.4 Description of Supply Base IPM Integrated Pest Management ISCC International Sustainable Carbon Certification Oil palm FFB is sourced from company owned estate ISO International Standards Organisation and scheme smallholders. The Tungkal Ulu Group’s ISPO Indonesia Sustainable Palm Oil Foundation projection of FFB productions (certified) for the year IUCN International Union for Conservation of Nature 2014 are listed in Table 2 as shown below. KUD Koperasi Unit