RSPO Principles & Criteria Re- Assessment Report Report ......RSPO Principles & Criteria Re-...

RSPO Principles & Criteria

Re- Assessment Report

Report Number CU813182

RSPOPC-SUM-REPORT.F01 OCT2013 of 39

Control Union (Malaysia) Sdn. Bhd.

150-A, 1st Floor, Persiaran Raja Muda Musa, Off Jalan Sg Bertih, Teluk Gadong, 41100, Klang, Selangor. Malaysia.

Tel: +603-3377 1600 / 1700

RSPO PRINCIPLES & CRITERIA

PUBLIC SUMMARY REPORT

ANNUAL SURVEILLANCE ASSESSMENT 4

INDONESIA

PT AGROWIRATAMA POM

2014

Report prepared by: Mahaswaran Maliyapan (Lead Assessor)

Certification decision by: Gerben Stegeman (Certifier)

Certifying Office


150-A, 1st Floor, Persiaran Raja Muda Musa,

Off Jalan Sg Bertih, Teluk Gadong, 41100 Klang, Selangor, Malaysia

[email protected]

Tel: +603-3377 1600 / 1700

Control Union Certifications Control Union Certifications is a member of the Control Union World Group - an international

inspection and certification body. CUC performs assessments and certification in many agricultural

based fields such as FSC, RSPO, and Organic production, Sustainable Textile Production, Organic

Exchange, GLOBALGAP, HACCP, BRC, GMP and GTP.

CUC is accredited by the Dutch Council of Accreditation (RVA) on the European quality standard EN

45011 for the inspection and certification of CUC Organic program (according to the EU regulation

2092/91) and GLOBALGAP program. When requested a copy of the accreditation certificate can be

obtained from CUC.

Control Union (Malaysia) Sdn Bhd is a registered affiliate member of RSPO and is a private limited

company owned by the Control Union World Group based in Malaysia. Control Union (Malaysia) Sdn

Bhd is authorized to conduct and issue certification on behalf of RSPO and Control Union

Certifications.

Control Union (Malaysia) Sdn Bhd is a registered affiliate member of RSPO and is a private limited

company owned by the Control Union World Group based in Malaysia. Control Union (Malaysia)

Sdn Bhd is authorized to conduct and issue certification on behalf of RSPO and Control Union

Certifications.

RSPO Membership Number 8-0025-06-000-00

RSPO Approval Date 12/01/2006

Affiliate Membership http://www.rspo.org/en/member/339







Tel: +603-3377 1600 / 1700

Table of Contents

PART 1: SCOPE OF THE CERTIFICATION ASSESSMENT AUDIT .............................................................. 4

1.1 COMPANY AND CONTACT DETAILS ....................................................................................................................... 4 1.2 RSPO MEMBERSHIP & CERTIFICATION DETAILS ..................................................................................................... 4 1.3 ANNUAL SURVEILLANCE ASSESSMENT DETAILS ....................................................................................................... 4 1.4 ASSESSMENT TYPE ............................................................................................................................................ 4 1.5 LOCATION OF THE PALM OIL MILL ........................................................................................................................ 4 1.6 PALM OIL MILL OUTPUT AND APPROXIMATE TONNAGES CERTIFIED ............................................................................. 4 1.7 GENERAL DESCRIPTION OF SUPPLY BASE ............................................................................................................... 5

1.7.2 Statistics of the Supply Base and Estimated Tonnes of FFB produced per year ................................................. 6 1.7.5 Calculation of the Number of Production Units (N) to Sample for the Mill ............................................................. 6

1.8 PROGRESS OF ASSOCIATED SMALLHOLDERS OR OUT-GROWERS, IF APPLICABLE TO THIS ASSESSMENT .................................. 6 1.9 LOCATION MAP FOR THIS CERTIFICATION UNIT (SEE APPENDIX 1) .............................................................................. 7

PART 2: PARTIAL CERTIFICATION ........................................................................................................ 7

2.1 MANAGEMENT STRUCTURE................................................................................................................................. 7 2.2 NON-COMPLIANCE IDENTIFIED WITH 2.1 ABOVE ..................................................................................................... 7 2.3 SUMMARY OF THE TIME BOUND PLAN .................................................................................................................. 7 2.4 UN-CERTIFIED UNITS OR HOLDINGS...................................................................................................................... 8 2.5 SUMMARY OF THE FINDINGS FOR PARTIAL CERTIFICATION ......................................................................................... 9 2.6 PARTIAL CERTIFICATION AUDIT AGENDA................................................................................................................ 9

PART 3: AUDIT PROCESS...................................................................................................................... 9

3.1 ABOUT THE CERTIFICATION BODY ......................................................................................................................... 9 3.2 AUDIT TEAM .................................................................................................................................................... 9

3.2.1 Qualifications of the Lead Auditor ............................................................................................................................... 10 3.2.2 Qualifications of the Assessment Team....................................................................................................................... 10

3.3 AUDIT METHODOLOGY .................................................................................................................................... 11 3.3.1 General Overview .............................................................................................................................................. 11 3.3.2 ..................................................................................................................................................................................... 12 3.3.3 Assessment agenda for this Audit ..................................................................................................................... 12

PART 4 ASSESSMENT FINDINGS ........................................................................................................ 13

4.1 LEAD ASSESSOR’S SUMMARY AND RECOMMENDATION FOR CERTIFICATION ................................................................ 13 4.2 SUMMARY OF THE FINDINGS BY PRINCIPLES AND CRITERIA ...................................................................................... 14

Principle 1: Commitment to Transparency .......................................................................................................................... 14 Principle 2: Compliance with Applicable Laws and Regulations .......................................................................................... 14 Principle 3: Commitment to Long-Term Economic and Financial Viability .......................................................................... 15 Principle 4: Use of Appropriate Best Practices by Growers and Millers .............................................................................. 16 Principle 5: Environmental Responsibility and Conservation of Natural Resources and Biodiversity .................................. 20 Principle 6: Responsible Consideration of Employees and of Individuals and Communities by Growers and Millers .......... 22 Principle 7: Responsible Development of New Plantings ..................................................................................................... 25 Principle 8: Commitment to Continuous Improvement in Key Areas of Activity .................................................................. 26 4.2.1: Summary findings for Scheme Smallholders (KKPA) KSBSAMB .................................................................................. 26

4.3 NON-CONFORMITY RAISED DURING THIS AUDIT AND ANY FROM THE PREVIOUS YEAR, IF APPLICABLE ............................. 29 4.3.1 Non-Conformities Identified during this Audit ........................................................................................................... 30 Non-were raised during this audit. ...................................................................................................................................... 30 4.3.2 Non-Conformity Identified during the last ASA, not applicable for MA ..................................................................... 30 Non-were raised during the last audit as this is the Main Assessment. .............................................................................. 30

4.4 ISSUES THAT WERE RAISED DURING THE STAKEHOLDER CONSULTATION, IF ANY ............................................................ 30

PART 5: RSPO SUPPLY CHAIN CERTIFICATION ................................................................................... 30

5.1 POM INCLUDED IN THE SCOPE OF THE AUDIT ...................................................................................................... 30 5.2 CONFIRMATION OF THE COMPANY’S SUMMARY OF ANNUAL CERTIFIED VOLUME OF RSPO CERTIFIED PALM OIL AND PALM

KERNEL OVER A SPECIFIED PERIOD ................................................................................................................................ 31 5.3 SUMMARY REPORT INCLUDING A BRIEF DESCRIPTION OF THE SCOPE OF CERTIFICATION ................................................ 31 5.4 MONTHLY RECORDS OF CERTIFIED AND UNCERTIFIED FFB RECEIVED SINCE THE LAST AUDIT ............................................ 31 5.5 MONTHLY RECORDS OF CERTIFIED CPO AND PK PRODUCED SINCE THE LAST AUDIT ...................................................... 31 5.6 RECORDS OF CERTIFIED CPO & PK SOLD UNDER UTZ ETRACE TO BUYERS SINCE THE LAST AUDIT, IF ANY .......................... 32 5.7 NON-CONFORMITIES IDENTIFIED DURING THIS AUDIT .............................................................................................. 32 5.8 DESCRIPTION OF THE ORGANIZATIONAL MANAGEMENT SYSTEMS............................................................................... 32







Tel: +603-3377 1600 / 1700

5.9 FINAL CERTIFICATION DECISION BY CONTROL UNION FOR THE RSPO SCCS AUDIT OF THE POM ...................................... 32

PART 6: CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY ........... 32

6.1 DATE OF NEXT ASA ......................................................................................................................................... 32 6.2 DATE FOR CLOSURE OF NON-CONFORMITIES ........................................................................................................ 32 6.3 SIGNING BY THE CLIENT .................................................................................................................................... 33 6.4 SIGNING BY THE LEAD AUDITOR ......................................................................................................................... 33 6.5 SIGNING BY THE CERTIFIER ................................................................................................................................ 33

PART 7: APPENDICIES ........................................................................................................................ 34

APPENDIX 1: LOCATION MAP FOR THIS CERTIFICATION UNIT ............................................................................................. 34 APPENDIX 2: LIST OF ABBREVIATIONS ............................................................................................................................. 38







Tel: +603-3377 1600 / 1700

PART 1: SCOPE OF THE CERTIFICATION ASSESSMENT AUDIT

1.1 Company and Contact Details

Company Name: PT. Agrowiratama

Business Address: Spring Tower 06-61, Jl. K.L. Yos Sudarso Km 7,8, Tanjung Mulia, Medan

20241, Indonesia.

Contact Person: Dr. Gan Lian Tiong

Office Telephone: +62 61 661 5511

E-Mail: [email protected]

Web Site: -

Other Certifications Held: ISCC, ISPO

1.2 RSPO Membership & Certification Details

RSPO Membership Number: 1-0054-08-000-00 [old number: 029-08(O) dated 26th May 2008] Registered Client Name: PT. Agrowiratama

Certificate Number: Old certificate No. C813182CU-RSPO-01-.2013

New Certificate No. CU-RSPO-813182

Start Date Of Certificate: 17th

June 2010

End Date Of Certificate: 16th

June 2015

Date Of Original Certification: 17th

June 2010

Scope: Certification of the Palm Oil Mill and Supply Bases

Type Of Certification: Single site

Duration Of Certificate: 5 Years from date of certification

1.3 Annual Surveillance Assessment Details

Dates Of This Audit: 14th

April – 16th

April 2014

Audit Number: 4 [Four]

1.4 Assessment Type

This is a RSPO Principles &Criteria Compliance assessment of the palm oil mill and its respective supply bases as

listed in this report below.

1.5 Location of the Palm Oil Mill

Name

Palm Oil Mill

Mill

Capacity Location GPS Reference

(POM) MT/Hour Address Longitude Latitude

PT Agrowiratama 45

Jorong Aie Aji, Nagari Sungai Aua,

Kecamatan Sungai Aua, Kabupaten

Pasaman Barat, Propinsi Sumatera

Barat, Indonesia.

99° 37’ 35.72”E

0° 11’ 56.25” N

1.6 Palm Oil Mill Output and Approximate Tonnages Certified

Figures below are from:

• Only from certified supply bases (Y/N). YES

• Combining certified with uncertified supply bases (Y/N). NO

• If the Mill is receiving FFB from uncertified supply bases outside the audit scope, such uncertified

sources is highlighted under the following sections as seen applicable:

a. PART 1, Section 1.7 – General Description of Supply Base,

b. PART 2: Partial Certification, Section 2.4 – Uncertified Units or Holdings,

c. PART 5: RSPO Supply Chain Certification of this report







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Projected Production from the last 12 Months (MT)

FFB CPO PK PKO PKE

203,416 48,820 12,714 - -

Actual production MT

FFB* CPO* PK* PKO** PKE**

204,550 49,152 13,111 - -

Projected Production from the next 12 Months (MT)

FFB CPO PK PKO** PKE**

191,932 47,983 11,996 - -

Note :

* Actual Production 17th June 2013 – 31st March 2014 + estimated production April 2014 – 16th June 2014

** PKO and PKE produced by PT Wira Inno Mas KCP Plant at another location which is RSPO SCCS certified.

1.7 General Description of Supply Base

PT Agrowiratama palm oil mill and its supply base including the KKPA Scheme Smallholders were certified on

17th June 2010. The supply base comprises of PT Agrowiratama - Estate Sei Aur and scheme smallholders (KKPA)

KSB I & KSB II, KSBSAMB and KSDBS which are fully managed by PT Agrowiratama. During this audit, the National

Interpretation of RSPO P&C for Indonesia was used to assess the palm oil mill, estate and KKPA Scheme

Smallholder. The mill processing capacity is 45 tons of FFB per hour.

1.7.1 Location of the Supply Base

OPP

Oil Palm

Plantation Location GPS reference Area Summary (Ha)

Name Address Longitude Latitude Total Mature

OPP

01

PT.Agrowiratama

- Estate Sei Aur

Jorong Aie Aji, Nagari

Sungai Aua Kecamatan

Sungai Aua Kabupaten

Pasaman Barat Propinsi

Sumatera Barat,

Indonesia.

99o 34’ 12” E 0

o 10’ 48” N 5,860.38 5,593.64

OPP

02

KSB I & KSB II

(Koperasi Sawit

Bersama)

Jorong Aie Aji, Nagari

Sungai Aua, Kecamatan

Sungai Aua, Kabupaten

Pasaman Barat, Propinsi

Sumatera Barat,

Indonesia

99o 36’ 35” E 0

o 11’ 24,86” N 524 524

OPP

03

KSBSAMB

(Koperasi Sawit

Bosa Sungai Aua

Manjunjung

Bilang)

Jorong Sungai Aua,

Nagari Sungai Aua,

Kecamatan Sungai Aua,

Kabupaten Pasaman

Barat, Propinsi

Sumatera Barat,

Indonesia

99o 31’ 15” E 0

o 09’ 44,92” N 500 500

OPP

04

KSDBS

(Koperasi Sawit

Datuk Bosa

Sikilang)

Jorong Sikilang, Nagari

Sungai Aua, Kecamatan

Sungai Aua, Kabupaten

Pasaman Barat, Propinsi

Sumatera Barat,

Indonesia

99o 31’ 16” E 0

o 08’ 42,02” N 500 500

TOTAL 7,384.38 7,117.64







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Note : Reduction of 181.61 Ha in Estate Sei Aur due to replanting area.

1.7.2 Statistics of the Supply Base and Estimated Tonnes of FFB produced per year

OPP Oil Palm Plantation FFB Estimate (mt) (budget

Jun ’14 – May ‘15)

Planting Years Cycle (Years)

OPP 01 PT.Agrowiratama - Estate Sei

Aur 148,410 1990 - 2013 25

OPP 02 KSB I & KSB II (Koperasi Sawit

Bersama) 13,976 1996 - 2002 25

OPP 03 KSBSAMB (Koperasi Sawit Bosa

Sungai Aua Manjunjung Bilang) 14,701 2005 25

OPP 04

KSDBS

(Koperasi Sawit Datuk Bosa

Sikilang)

14,845 2005 25

TOTAL 191,932

1.7.3 Conservation and HCV Area (Ha)

OPP Oil Palm Plantation Conservation Area (Ha) HCV Area (Ha) * HCV part of

Conservation

OPP 01 PT.Agrowiratama - Estate Sei

Aur

- 752.17Ha Yes

TOTAL - 752.17Ha

* Indicate if HCV area is part of the Conservation Area. If the HCV area is part of the Conservation Area, then

“YES” otherwise, “No”

1.7.4 1.7.5 Percentage of Planted Oil Palm by different Age Ranges

CU Code

Planting Years by 5 year Ranges (March 2014)

1990 – 1994 1995-1999 2000-2004 2005-2009 2010-2014 TOTAL

P01 1,636.83

( 27.93 % )

1,148.58

( 19.60 % )

2,669.76

( 45.56 % )

138.47

( 2.36 % )

266.74

( 4.55 % )

5,860.38

( 100 %)

P02 -

134

( 25.57 % )

390

( 74.43 % ) - -

524

( 100 % )

P03 - - -

500

( 100 % ) -

500

( 100 % )

P04 - - -

500

( 100 % ) -

500

( 100 % )

Total 1,636.83

( 22.17 % )

1,282.58

( 17.37 % )

3,059.76

( 41.43 % )

1,138.47

( 15.42 % )

266.74

( 3.61 % )

7,384.38

( 100 % )

1.7.5 Calculation of the Number of Production Units (N) to Sample for the Mill

N = 0.8√Y, where “Y” is the number of units, with the result always to be rounded “up” to the next whole

integer. Where only a sample of the supply base is assessed, units not previously assessed, or assessed earlier in

the certification program, are to be preferred over those more recently assessed

For the Mill, how many units make up the production base?

Owned estates (Y) N = 0.8√Y Smallholders (Z) N = 0.8√Z

1 1 3 1

Explanation as to the selection of estates sampled

1 estate and 1 KKPA were assessed.

1.8 Progress of associated Smallholders or Out-growers, if applicable to this assessment

Progress of associated Smallholders or Out-growers towards Compliance with relevant Standards - should be in

accordance to the 3 year implementation plan, if applicable to this assessment

NA







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1.9 Location Map for this Certification Unit (See Appendix 1)

PART 2: PARTIAL CERTIFICATION

The rules for partial certification allow organizations that have a majority holding in and / or management

control of more than one autonomous company growing oil palm to certify individual management units and /

or subsidiary companies subject to certain rules.

2.1 Management Structure

Section Criteria Yes/No If “Yes” If “No”

2.1.1 Is the certified operation (POM and supply base as

detailed above) a stand-alone operation and there are

no other plantations or mills owned by the same

company?

No Section 2 is

N/A

Go to 2.1.2

2.1.2 Is the certified operation part of a simple structure of

operations owned by one company?

Yes Go to 2.1.5 Go to 2.1.3

2.1.3 Are there statements of the ultimate controlling

shareholders and directors in the managing agency

company/companies:

a. Explaining the legal relationship and the

management arrangements with the subsidiary

companies and / or with any operating groups?

- Go to 2.1.4

Go to 2.2.1

2.1.4 b. A statement of commitment to complying with the

spirit of the RSPO for all companies and

subsidiaries involved with the growing of oil palm

and for the production of palm oil?

- Go to 2.4 Go to 2.2.2

2.1.5 Is there a time bound plan in place for all subsidiaries,

estates and palm oil mills?

Yes Go to 2.3 2.2.3

2.1.6 Is the parent company or one of its majority owned and /

or managed subsidiaries a member of RSPO.

Yes

2.2 Non-compliance Identified with 2.1 Above

Section Non-compliance findings NC raised Category

2.2.1 There is no explanation as to the company’s structure and therefore it

Is not possible to conduct an effective audit against the rules for

partial certification.

- Major

2.2.2 There is no statement of commitment to complying with the spirit of

the RSPO for all companies within the company structure.

- Major

2.2.3 There is no time bound plan in place for the certification for all

subsidiaries, estates and mills.

- Major

2.2.4 No applicable membership of the RSPO. - Major

2.3 Summary of the Time Bound Plan

Section Requirement Findings and any action required Compliance

2.3.1 Does the plan include all subsidiaries, estates and

mills?

Yes, all subsidiaries were

certified in 2010 and 2011. Yes

2.3.2 Is the time bound plan challenging?

� Age of plantations.

� Location.

� Mill development.

� Infrastructure.

� Compliance with applicable law.

Yes, all subsidiaries were

certified in 2010 and 2011. Yes

2.3.3 Have there been any changes since the last audit? New Plantings were carried as Yes







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Are they justified? detailed in 2.3.9.

2.3.4 If there have been changes, what circumstances

have occurred?

None.

Yes

2.3.5 Have there been any stakeholder comments? No comment was received. Yes

2.3.6 Have there been any newly acquired subsidiaries? No new acquisition. Yes

2.3.7 Have there been any isolated lapses in the

implementation of the plan?

None. Yes

2.3.8 Has there been any systematic failure to proceed

with the implementation of the plan?

None. Yes

2.3.9 General statement as to progress made since the

last audit?

The following plantations have

under-gone the NPP process:

1. PT. Mulia Indah – Sambas,

West Kalimantan (NPP on 27 July

2011 – 29 July 2011, NPP

Notification on 25 August 2011 –

24 September 2011).

2. PT. Multipersada Gatramegah,

Central Kalimantan (NPP on 12

December 2012 – 13 December

2012, NPP Notification on 14

December 2012 – 13 January

2013).

3. PT. Globalindo Alam Perkasa

(Alam Murni Estate), Central

Kalimantan (NPP on 10 December

2012 – 11 December 2012, NPP

Notification on 13 December

2012 – 12 January 2013).

4. PT. Agrowiratama – Sambas

(Stage II), West Kalimantan (NPP

on 11 Dec 2012 – 12 Dec 2012,

NPP Notification on 13 February

– 14 March 2013).

Yes

2.4 Un-Certified Units or Holdings

NOTE: Companies may demonstrate compliance by clear evidence of a self-audit (i.e. an internal audit for all

subsidiaries, estates and Palm Oil Mills)

Section Requirement Findings and any action required Compliance

2.4.1 Did the company conduct an internal audit? If so,

has a positive assurance statement been

produced?

The company has been

conducted internal audit and

positive assurance statement and

all the subsidiaries have been

certified successfully.

Yes

2.4.2 No replacement after dates defined in NIs

Criterion 7.3 of:

• Primary forest.

• Any area identified as containing High

Conservation Values (HCVs).

• Any area required to maintain or enhance

HCVs in accordance with RSPO criterion 7.3.

No replacement of primary forest

was noted. Areas containing

HCVs have been noted. These

designated areas are maintained

and enhanced according to the

requirements of RSPO. The above

mentioned [2.3.9] plantations

have under-gone the NPP

process.

Yes







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2.4.3 Any new plantings since January 1st

2010 must

comply with the RSPO New Plantings Procedure.

No new planting were noted

during the audit. All previous

planting had undergone the NPP

notification.

Yes

2.4.4 Any Land conflicts are being resolved through a

mutually agreed process, e.g. RSPO Grievance

procedure or Dispute Settlement Facility, in

accordance with RSPO criteria 6.4, 7.5 and 7.6.

None noted. No stakeholder

comments or complaints noted

during this assessment. Yes

2.4.5 Any Labor disputes are being resolved through a

mutually agreed process, in accordance with RSPO

criterion 6.3.

None noted. No stakeholder

comments or complaints noted

during this assessment.

Yes

2.4.6 Any Legal non-compliance is being resolved in

accordance with the legal requirements, with

reference to RSPO criteria 2.1 and 2.2.

The company has met its legal

requirements. See also audit

findings under PART 4, criteria

2.1 and 2.2 below as well.

Yes

2.5 Summary of the findings for Partial Certification

The audit team assessed compliance with the above requirements during this audit. Failure to address any non-

compliance identified may lead to certification suspension.

No failure or non-compliance against the partial certification requirement was noted during in this audit.

2.6 Partial Certification Audit Agenda

Date Location Agenda

NA

PART 3: AUDIT PROCESS

3.1 About the Certification Body

Control Union Certifications is a member of the Control Union World Group – an international inspection and

certification body. CUC performs Audits and certification in many agricultural based fields such as FSC, RSPO,

and Organic production, Sustainable Textile Production, Organic Exchange, GLOBALGAP, HACCP, BRC, GMP and

GTP.

CUC is accredited by the Dutch Council of Accreditation (RVA) on the European quality standard EN 45011 for

the inspection and certification of CUC Organic program (according to the EU regulation 2092/91) and

EUREPGAP program. When requested a copy of the accreditation certificate can be obtained from CUC.

Control Union (Malaysia) Sdn Bhd is a registered affiliate member of RSPO and is a private limited company

owned by the Control Union World Group based in Malaysia. Control Union (Malaysia) Sdn Bhd is authorized to

conduct and issue certification on behalf of RSPO and Control Union Certifications.

3.2 Audit Team

Lead auditor: Mahaswaran Maliyapan

Team member 1: Mr. Rizal Kassim

Team member 2: Mr. Hasnop

Team member 3: Mr. Mohd Jamalul Arif Hamin







Tel: +603-3377 1600 / 1700

3.2.1 Qualifications of the Lead Auditor

Requirement Qualifications

A minimum of post high school (post-secondary

school) training in either agriculture/forestry,

environmental science or social sciences;

Certified ISO 14001:2004 and OHSAS 18001:2007 Lead

Auditor.

At least 5 years professional experience in area of

work relevant to the assessment (e.g., palm oil

management; agriculture/forestry; ecology; social

science);

More than 15 years of working experience in various

industries. Fully trained in similar agriculture certification

programmes such as RSPO, SCCS and RFS2.

Training in the practical application of the RSPO

criteria, and RSPO certification systems;

Involved in RSPO assessment since 2012. Member of CUC

RSPO audit team. Involved in audits conducted in

Malaysia and Indonesia. Successfully completion of an ISO 9000:19011 lead

auditors course;

Completed ISO 9001:2008, ISO 14001:2004 and OHSAS

18001:2007 lead auditor course in June 2007.

Training in the practical application of RSPO

certification systems.

Involved in RSPO assessment since 2012. Member of CUC

RSPO audit team. Involved in audits conducted in

Malaysia and Indonesia. A supervised period of training in practical auditing

against the RSPO criteria or similar sustainability

standards, with a minimum of 15 days audit

experience and at least 3 audits at different

organizations.

Involved in audits conducted in for many different

companies in Malaysia and Indonesia.

RSPO endorsed lead auditors course. Completed RSPO Lead Auditor training in Oct 2013 Signed code of conduct. Yes

General knowledge of: Yes

• RSPO P&C standards. Yes

• CUC organizational structure. Yes

• CUC quality systems. Yes

• Lead auditor role. Yes

• Report writing. Yes

• Stakeholder consultation. Yes

• Certification decision process. Yes

• RSPO SCCS program manual. Yes

• CUC filing systems. Yes

• Correct use of RSPO trademarks. Yes

• History and objectives of RSPO. Yes

• CV available. Yes

Completion of CUC RSPO lead auditor training. Yes

3.2.2 Qualifications of the Assessment Team

RSPO Requirement Team Member Name Qualifications

Fluent in main local

languages and English.

Mr. Rizal Kassim Fluent in Bahasa and English

Mr. Hasnop Fluent in Bahasa and English

Mr. Mohd Jamalul Arif Hamin Fluent in Bahasa and English

Field working

experience in the palm

oil sector, or a

demonstrable

equivalent.

Mohd. Rizal Md. Kassim Forestry and wood base working knowledge and

qualified QMS and OHSAS auditor. Currently

active in SCCS and ISCC audits globally.

Mohd Jamalul Arif Hamin Global GAP and agriculture auditing experience

and RSPO is the prime auditing scope in CUC.







Tel: +603-3377 1600 / 1700

Mr. Hasnop Agriculture and engineering background with

many years’ experience in 2nd and 3rd party

auditing of QMS, EMS, OHSAS and RSPO. well

verse in local legal requirements.

Good agricultural

practices (GAP),

integrated pest

management (IPM),

pesticide and fertilizer

use.

Mr. Rizal Kassim Experience as safety office in Manufacturing

company

Mr. Mohd Jamalul Arif Hamin Involve in RSPO auditing since Jan 2011

Mr. Hasnop RSPO certified auditor

Health and Safety

auditing on the farm

and in processing

facilities. (For example

OHSAS 18001 or

occupational. Health

and safety assurance

system).


Mr. Hasnop OHSAS certified auditor

Workers welfare issues

and social auditing

experience. (For

example with SA8000 or

related social or ethical

accountability codes).


Environmental and

ecological auditing. (For

example experience

with organic agriculture,

ISO 14001 or

environmental

management systems).


Mr. Hasnop EMS certified auditor

Economic issues. Mr. Mohd Jamalul Arif Hamin Involve in RSPO auditing since Jan 2011

3.3 Audit Methodology

3.3.1 General Overview

The Audit was carried out in conformity with the procedures as laid down in the CUC Procedure Manual and the

RSPO Program Manual for the auditors and Certifier. During the Audit the qualified CUC auditors used the RSPO

standard as endorsed for the country in which the audit took place and recorded their findings.

Workers and local communities were interviewed and evidence sought to confirm ongoing compliance to

include:

• Chemical stores. Storage, MSDS leaflets, Herbicide mixing areas, PPE, Ventilation, Security.

• Field inspections. Herbicide application programs. Harvesting sites and efficiency. Fertilizing operations.

SOP’s. Soil maps. Land preparation. Ground cover. IPM. First aiders and boxes. Ground cover. Soil erosion.

Field observations of all operations.

• Worker interviews. OSH. Sexual, religious, racial harassment. Pay and contracts. Child labor. First aid.

Awareness.







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• Re-planting sites. Zero burn.

• HCV’s. Identification. Management plans. Environmental Impact Assessments. Implementation.

• Riparian zones. Width. Current and future management. Non maintenance regimes.

• Water management. Water courses. Water monitoring.

• Road maintenance. Run off.

• Social amenities. Social Impact Audits.

• Local communities. Contributions made. Employment opportunities. Social impacts. Complaints procedures.

• Workshops. Oil traps. Safe working environment. PPE. Diesel tanks. Environmental waste management.

• Line sites. Interviews with householders. Inspection of water discharge points. Water improvement plans.

Waste disposal.

• Documentation review.

The Palm Oil Mill audit verification included the following activities:

• Mill and workshop inspections. Documentation review & worker interviews.

• Mill. SOP’s. Safe working environment. Gen sets. Walk ways. Signs. EFB. POME treatment. Emissions. Mass

balance. Diesel tanks. PPE. Fire extinguishers. First aiders and boxes. Fuel and water usage.

• OSH. Training. Management structure. First aiders.

• Full document review. Completion of the checklist. Review and documentation of evidence. All aspects of

RSPO P&C’s applicable.

• Worker interviews. OSH. Sexual, religious, racial harassment. Pay and contracts.

• Compliance against the RSPO SCCS certification scheme.

Verification:

Verification of implementation was done through field observations, workshop and chemical store inspections,

worker and community interviews and mill inspections as summarized above.

3.3.2 3.3.3 Assessment agenda for this Audit

Date Auditor Location Main activities

14/04/2014

[Monday]

All Auditors PT. Agro

[training room]

08.30 Opening meeting

Chaired by the audit team leader

• Introduction by team leader

• Presentation by respective managers

• Presentation of Palm Oil Mill source of FFB by

respective managers

Mahas

Jamal

Hasnop

PT. Agro POM

09.30am

Supply Chain Certification Assessment of the POM (RSPO

SCCS)

Mill inspection

• Workshops

• Stores

• POM application

• Document review

Field operations

• Worker interviews

• Housing

• Medical

• Schools

• Local communities

• Environmental

15/04/2014

[Tuesday]

Jamal

Mahas Sei Aur Estate

Document & Field operations.

• Worker interviews

• Chemical stores

• Workshops







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Hasnop KKPA

[KSBSAMB]

• Housing

• Medical

• Schools

• Local communities

• Environmental

16/04/2014

[Wednesday] All auditors

PT. Agro

[training room]

Preparation for closing meeting

Additional field visits and meetings with managers as

necessary

Closing meeting

Chaired by the audit team leader

• Welcome and introduction by the team leader

• Presentation of findings by the audit team

• Questions and answers

• Final summary by team leader

End of assessment

PART 4 ASSESSMENT FINDINGS

4.1 Lead Assessor’s Summary and Recommendation for Certification

The mill and supply bases visited (as per the above Tables 1.5 and 1.7.1) were assessed at field, office, facilities,

stores and a document review was carried out in accordance to the RSPO principles and criteria. The subscribed

RSPO management system’s documentations seen with minor changes that due to internal and external

influenced such as replanting SOP [peat soil treatment / long range replanting program].

Specific evidence was recorded for estate and mill. Interviews with Estate Managers, Mill Manager, members of

workers union and committee took place in both formal and informal environments and worker interviews were

conducted at the supply base and the mill. The management is highly committed in maintaining the RSPO

system by adopting to continuous improvement programs.

RSPO has helped the operating units in identifying needs based analysis prior to any CSR programme.

Improvement was also sighted in PPE allocation, monthly / annual medical check, the workers quarters has

improved with better facilities. The HCV program has created great awareness among all stakeholders as well

among the employees.

The management continually monitors the established KPI / objectives that significantly rule the achievement of

company’s corporate policy on RSPO. The establishment of “Audit & Certification” from HQ will perform audits

on monthly basis which will be reported to Sustainability team head in HQ. Top management continuously

establishes directions for the middle and upper management to execute in ways to sustain the RSPO

management system. Every quarterly, a review for the performance of mill and its supply bases will be carried

out with the President Director.

It is therefore the recommendation of the lead assessor that:

• A certificate of compliance is issued.

Signed:

Name: Mahaswaran Maliyapan

Date: 17/04/2014







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4.2 Summary of the findings by Principles and Criteria

• Over the 5 year period of the life of the certificate, there will be 4 annual surveillance audits

• Identified Non-Conformities and noteworthy Positive and Negative Observations.

• The RSPO require that this report contain findings by each principle and some example criteria. Please see

table below.

Principle 1: Commitment to Transparency

Criterion by Audit

Summary

Records of request and respond are maintain effectively by

HUMAS, however each operating unit are made known of the

process. Documents that are required to make publicly available

are being managed well. Overall the application of principle 1 at

all operating units found satisfactory.

ASA 4 1.1 The Humas team whom based in Medan navigates with mill and

estates operating units. Sighted the “Records of Information

Request and Respond” [001-SHE/03.01/1.4]. Since April 2013 to

Mar 2014, there were 18 requests were made [8 for legal, 8 for

environment, 1 for social and 1 for estate]. However the “External

Complaint & Grievances Book” seen still not fills as no such events

took place.

Sighted the “Records of Information Request and Respond” [001-

SHE/03.01/1.4] booklet adequately provided with information

that were responded. Observed the most recent request was

made by Bpk Ardisyah Putra from Baristand Padang on

09/04/2014 requesting permission to perform sampling for air

monitoring, it was responded by Bpk Dimas.

Policy MM-POD/01.01/6.3.0 (rev.3) dated 17/08/13 and AGR-

POD/01.01/1.4.0 dated 07/08/13 indicate of documents related

to operational activities to retained at least for 10 years, labour

document for one year, legal documents until expiry, research

document for 7 years and SCCS and ISCC for 10 years.

ASA 4 1.2 Company maintains SOP no. AGR-SOP/03.01/3.26.0 with title

“Stakeholders Information Request” refers also to POD no. AGR-

POD/01.01/1.1.0 with title “Company Confidential” stating what

are the document treated confidential such as financial and

company strategy, intellectual property and others issue is think

to give negative effect to company. Documents other than

mentioned above are considered as publicly available upon

request. These include legal, environment, social, OSH and

continues improvement plan.

Principle 2: Compliance with Applicable Laws and Regulations

Criterion by Audit

Summary

The company has a comprehensive system for ensuring all

estates, KKPA and mill managers are up to date with the

applicable laws and they have an internal monitoring system to

ensure compliance. The boundary stones are inspected in the

fields confirmed that these have been maintained.

ASA 4 2.1 Sighted some legal documents, such as IUP (Plantation permit),

HGU documents, AMDAL documents and some other mandatory

permits are maintaining well at respective operating units.

Observed the implementation of best practice in mill and estate

operation such as waste water treatment, best agriculture

practices, chemical handling and usage, company regulation, etc.

Checklist and implementation of regulation and compliance







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analyses of legal and other regulation is available to evaluate the

compliance. Public relation (HUMAS) department is responsible

to update any new regulation and analyse the compliance.

Sighted the SSP [Surat Storan Pajak] – NPWP 01-327-729-8-123-

000 dated on 23/08/2013 being evidence of land title payment

[Rp 1.093.128.000] for the HGU [7.990 Ha] ref #

03.07.01.29.2.0001.

Seen the “List of Machine Correspondences’ matrix that overview

of the list of machineries and the competence person’s

requirement. Sighted the competency record for Bpk. Rahmad

Heriadi Hutabarat whom has valid licence of competence

electrician

ASA 4 2.2 There aren’t any disputes or conflicts with local community were

evidence during this assessment. Unless if there is any, a

mechanism to resolve the conflict or disputes shall be refer to

“Keluhan & Komplain external” No. AGR-SOP/01.01/5.1 issued on

01 December 2007 and first revised on 01 March 2014.

Negotiation and agreement by win-win solution for all parties is

part of mechanism prior to the court way.

ASA 4 2.3 No land claim from community and no use of customary land.

Principle 3: Commitment to Long-Term Economic and Financial Viability

Criterion by Audit

Summary

A documented operational plan and budget covered operational

strategies to meet the plan and budget have been prepared by

the estates and mill. Replanting programme in the near future

made available in proper records.

ASA 4 3.1 “Master Copy Verifiers” [AGR-RSPV/03.01/1.2] – REV 08 @

10/02/2014. The plan starts from 2014 – 2023 that consisted for

estate, KKPA and the mill. The plan effectively describes of the

FFB generation by respective sites as well the CPO production by

the mill. Sighted the hectarage statement, replanting schedule

and replanting layout in accordance to the programme.

Sighted the recent 3 years of the actual against budgeted

production expenditure for Sei Aur estate.

2011 2012 2013

Budget 169,954.50 174,617.57 160,494.55

Actual 175,769.28 164,880.55 158,411.49

Also sighted the income trend of smallholders in 2013.

Oct ‘13 Nov ‘13 Dec ‘13

KSB I 4927.09 5,262.25 4,061.17

KSB II 4,656.10 5,487.59 3,796.21

KSDBS 3,488.68 4,093.72 3,514.99

KSBSAMB 3,586.71 3,462.15 2,723.66

Estate has a replanting programme until years 2030 involved

6,043.84 Ha of matured area. For 2014, total as 378.82 Ha was

planned to be replanting. Until March 2014, 183.46 Ha was

completed chipping, pulverarate and stacking in the field. The

progress is planned to be completed by Dec 2014.

Monthly Management Report available to monitored the

progress of the replanting as according to the programme. Yearly

review will be conducted by HQ to this programme.







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Principle 4: Use of Appropriate Best Practices by Growers and Millers

Criterion by Audit

Summary

The company has established the relevant SOPs for all stages of

operations in the estates and mill and there were sufficient

evidences that these have been implemented. Risk assessments

are conducted and the necessary attention to OSH is given.

Training is conducted for all workers and contractors.

ASA 4 4.1 GAP-group agriculture policy from Land clearing to harvesting

established, maintained and updated.

• Nursery POD/01.01/2.1.1, 26-10-13

• Land Preparation POD/01.01/2.2.1, 10-05-13

• Land conservation POD/01.01/2.3.1, 02-02-12

• Thinning POD/01.01/2.4.1, 01-02-11

• Upkeep, POD/01.01/2.5.1, 09-08-01

• Pest and disease, POD/01.01/2.6.1, 15-12-12

• Manuring, POD/01.01/2.7.2, 21-05-12

• Harvesting policy, POD/01.01/2.8.3, 02-01-12

Water analysis for Sikilang and Batang Alin River carried out once

per year according to GAP Group guidelines. Analysis report for

period 2013-2014 available dated 20 Sept 2013 includes 4 points

of sampling. Report reference no.

1292/BPKIMI/BRSIP/LAB/X/2013 by Industrial Standardization

Department using parameters such as pH, BOD, COD, Dissolved

oxygen, Phosphate, Nitrate, Ammonia, Arsenic, Cadmium,

Chrome, Copper etc. The analysis report concluded as meeting

the requirements.

ASA 4 4.2 Soil analysis carried out every year to determine soil fertility and

recommendation of fertilizer by R&D Department from Pekan

Baru. For 2013, 40 soils sample was taken for 2014 fertilizer

recommendations. For leaf analysis, 57 samples taken and report

of analysis available:

• 033/RDL-INT/LV/13 dated 06/05/13 for 27 samples



Both sampling process will be conducted on annual basis include

major elements such as N, P, K, Mg, Ca, and also minor elements

such as Boron, Cu and Zinc.

From the soil analysis report 2013, total mineral soil is 2843.99 Ha

and vast area identified as Peat soil area( 3199.85 Ha) Breakdown

for type of peat soil identified as:

Peat 0-150 cm 412.20 Ha

Peat 0-300 cm 85.40 Ha

Peat 150-300 1,942.89 Ha

Peat 300-500 cm 644.83 Ha

Peat >500cm 114.53 Ha

From recommendations of R&D also, estate applied a Dried

Decanter Solid (DDS) and Boiler Ash from palm oil mill to improve

soil fertility in field. For peat soil management, estate was

maintained 563 water gates to secure the water level in peat soils

area. Water level is monitored by appointed staff and reported

every month. Level of water is maintained in range 50 – 60cm

based on company GAP policy. Peat soil subsidence monitoring

also include in peat soil water management. Monitoring done

every 6 month commenced on April 2014.







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ASA 4 4.3 Soil map “verification peat soil map" dated 06-04-13, Extent &

distribution of various soil type, soil series updated. No fragile soil

identified. Estate have very minimum of slopes area. Range in 0 –

6 degree of slopes all around the estate. Slope map available

surveyed by external consultant, JH Agriculture Services latest on

2014. Road maintenance program 2013-2014, total meters done

for grading 179,344 meters, compared to budget 2012 (297,910

meters). The 3 years planning from 2012-2014. The priority of the

maintenance will be done to the road areas that needed priority.

From the soil analysis report 2013, vast area identified as Peat soil

area (3199.85 Ha). For peat soil management, estate is

maintaining a total of 563 water gates to secure the water level of

soils. Water level is monitored by appointed staff and reported

every month. Level of water is maintained in range 50 – 60cm

based on company GAP policy. Peat soil subsidence monitoring

also include in peat soil water management. Monitoring done

every 6 month commenced on April 2014.

No low organic soil and slope areas. The monitoring of water

management is done weekly. Record monitoring of number of

water weir. Condition of water, main rain collection drain and

outlet. Flow and direction of flow and water level between 50-60

cm. Monitoring record of March 2014 is verified.

ASA 4 4.4 Estate has 2 rivers, Batang Alin River and Sikilang River. Company

policy is river width above 10m must maintained 100m buffer

zone alongside the river. Buffer zone is maintained with proper

management such as planting of jungle trees and no chemical

activities allowed in this area. Area where previously planted oil

palms removed to incorporate biodiversity enhancement plan and

restore the riparian along the river was planted with forest trees.

Restoration of Riparian zone along the river riparian has been

given high priority for planting of forest trees such as Samanea

saman, Swietenia macrophylla, Shorea sp, Terminalia

cattapa, Durio Zibethinus, Mimusops elengi. Previous planted

trees have grown about 3-4 meter and biodiversity enhancement

is taking place along this river green belt area.

50 meter riparian zone is maintained without any chemical

application. Appropriate signage also maintained at this area to

give awareness to the workers and community. Estate also does

the monitoring such as water sampling for Batang Alin and

Sikilang River. Water analysis is carried out once per year based

on Group GAP guidelines and be included in RKL/RPL report.

Furthermore, various visitors come and do their research with

collaborations of estate management such as water analysis

report by University of Andalas on 21-12-2013.

ASA 4 4.5 IPM plan were documented in Group GAP guidelines, which

includes beneficial planting and barn owl. Planning and realization

of IPM programmes were monitored by mapping the beneficial

plant to be planted with types of plant. The plans are monitored

by daily completion of planting. IPM Monitoring and census

carried out monthly basis for leaf eating caterpillar setora nittens

and sethotosea asigna, barn owl census, termite census and rat

census.







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Apart from normal routine maintenance of the barn owl boxes,

monitoring of the owl population is carried out on monthly basis.

Census record shows no serious attack. Trainings are given to all

staff on IPM. Pesticide toxicity units monitored by each active

ingredient and it are calculated based on LD 50(Mg/Kg), chemical

usage, total a.i. Used, Ha planted, FFB produce, pesticide usage

(L/Ha), L/ton and finally result shown in Pesticide toxicity units

monitored (Kg/LD 50/FFB) by monthly and up to date.

ASA 4 4.6 Estate has a list of approved type of chemicals to use in field by

R&D Department. Total 15 types of chemicals are used in PT.

Agrowiratama estate. List of chemical available included type of

chemicals (herbicide, fungicide and insecticide), commercial

name, LD 50 (mg/kg), active ingredients, supplier name, license

number and permit validity.

Record of the pesticides usage included active ingredients, area

treated, amount applied per ha and liter per ha. Record of

Capture 100EC (a.i Cypermethrin) was shown high due to

replanting programme in progress. Sample of pesticide record on

March as Agrimec 18EC (a.i Abamectin) 0.60 liter, a.i used 0.11 kg,

Ha planted 5860.38 Ha, FFB produce 13,421.77 and 0.000102382

liter/ha.

Pesticide usage is from recommendations of R&D Department.

Agrochemicals waste is centralized at scheduled waste store at

estate with permit number No. 188.45/229/BUP-PASBAR/2014

on date 10 March 2014 according to the regulations. Then the

waste will be collected by PT. Primanru Jaya (Permit no. 234) not

exceed than 90 days waste is stored in estate. Record of

inventory is well maintained by estate, last collecting made on 10

March 2014 as details below:

- Oil drum – 5 x 1000 liter

- Used battery – 10 units

- Bulb lamp – 29 units

- Oil filter – 93 units

- Chemical containers

- Workshop Rags

Company used chemical type 1B Sime Ebor Baits (a.i Warfarin) for

rat attacking in the field based on the census carried out every

month. No using Paraquat in any operation. So far, only pesticide

Warfarin 0.05% (class 1b) is using but company has commitment

to reduce the usage through IPM practice in the field.

Record shown the usage of this pesticide is still less due only will

use if census of rat is higher and cannot be control by IPM

practice. This chemical only is used when census result is

exceeding the 5% limitations of attacks. However, sighted highly

usage of Sime Ebor Baits from Jan – 1515.63 kg and February –

5,799.92 Kg. Justification of February application according to

Group Agriculture Policy for Pest and Disease management, for

palm oil tree above 3 meters area, baits must be applied every 6

months until the baits effects below than 20%. (refers to Group

Agriculture Policy 6 – 4.2 Pengendalian Tikus di Perkebunan

Kelapa Sawit dated 18 April 2012).

Annual medical checkup carried out by Laboratory Clinic







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Anugerah besides monthly checkup by internal estate clinic for all

workers related to chemicals. Medical checkup for workers such

as Chemical store operator, mandor/sprayer, mandor/weeder

workers, mechanic, machine operator and gensets operator. On

15 March 2014, total 226 workers were sent for medical checkup

involved blood test, urine, lungs and audiometric test. Sample of

medical checkup report for Sprayers, Siti Kholipa and Ernawati is

verified. Record of all agrochemical verified no pregnant or breast

feeding woman was involved in chemical activity. Monthly health

checks to all sprayers to ensure they are free said issue.

ASA 4 4.7 In the mill, the safety, healty and hygiene policy dated 07-07-

2007, revised 01-02-2011. The policy covers minimize the risk of

accident, poor health, unsanitary working environment, identify,

assessing and controlling the risk, provide information thought

training, announcement, to ensure safe work practice, discuss

OSH issues in work place, contractors/employees and visitors to

obligate the rules and regulations of OSH in work place.

As for the estate, Documented Occupational Safety & Health

(OSH) policy and its implementation seen effectively

communicated and implemented. Among the programs that

associated with OHS includes OSH training, medical check-up,

daily safety briefing, Hazard and risk analysis of work place,

implementation of PPE usage and inspection, safety committee,

safety meeting, internal safety audit where the subjects in this

implementation.

Responsible person for OSH in PT. Agrowiratama is headed by

safety officer, Mr. Andi Roy Silalahi (certificate no.

KEP.5120/M/DJPPK/II/2014. Sighted the insurance coverage for

month of Jan and Feb 2014. All the employees covered by

insurance. Jamsostek insurance coverage for all workers. i.e.

number DD 001041000 and DD 000529. Sighted the 2013 and

2014 medical report summary for 131 workers.

The summary made to 3 types of sickness from 20 workers that

needed further attention from panel doctors. Monthly Records of

health examination for worker applying agrochemicals available,

verified from Medical check-up record for individual worker for

year 2012. It is conducted on monthly basis. Verified from medical

check-up for employee Ms. Ernawati - sprayer leader, details of

check-up are skin irritation, breath, nail, blood pressure, weight,

with details result.

Risk assessment for OSH available in HIRARC document for 2014.

HIRARC included all activities in estate operations from planting,

harvesting, pruning, transportation, weeding, chemical handled

such as mixing and application, pest management, workshop

works, scheduled waste management, administration etc. Last

revision on January 2014. The revision also will be made if any

accident happen, amendment from legal, changes to the

operation activities and annual revision.

HIRARC document contains as what the process, sample of

activity, hazard identified, potential level, risk level and existing

control measures (ECM). OSH training programme is divided into

4 category in estate:







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- Inspection team training

- Fire Team Training

- Emergency situation Training

- OSH environment Training

The most recent OSH training dated 29 March 2014 by safety

officer, Mr. Roy to 14 personnel at workshop workers. Estate has

6 certified persons for first aid training. Certificate available and

verified:

- Sukrihadi – 410/BK3-MDN/XII/2008

- Nispan – 416/BK3-MDN/XII/2008

- Syafrizal - 420/BK3-MDN/XII/2008

As part of future programme in 2014, 2 persons from estate will

be send for first aider training as additional to existing first aider.

20 minor accidents reported in period Jan – March 2014. 1 level

accidents sighted on March 29 2014 for criminal case in work

time. Accidents was reviewed and reported

ASA 4 4.8 Training calendar seen integrated of environment, social and OHS

with training status well indicated. Since Mar 2013 to Mar 2014,

there were 174 trainings were effectively carried out by estate

and mill. Sighted the records of attendance for RSPO & ISPO

awareness to workers, OHS and first aid training, HCV awareness

for staff, understanding of SOPs and PODs, spraying techniques

etc.

Both in mill and estate, the training programme for all workers is

based on “Training Need Analysis” assessment. TNA document is

developed on 30 Dec 2013 for 2014 training programme. TNA is

divided in each estate operation and type of working condition.

Programme for 2014 sighted, divided by several training aspect

such as Agronomist Training, Administration Training, HRD

Training, OSH Training and General Training. Document is in

matrix included type of training, trainer, level of workers,

realization and planning date.

In estate, record of training for each employee kept in the

personal workers file. Files of workers name Ernawati (sprayer),

Lia Martoya (sprayer) and Yuhendri (Store operator). Sighted the

training attendance record for building contractor [CV Bukit Mas]

and engineering works contractor [PT. Binajaya Mitra Persada]

dated on 23/08/2013. The required PPE during the work

assignment shall be managed by contractor.

The number of workers required for the assignment closely

monitor by the safety officer on daily basis. Additional workforce

from contractor required another training session. In estate

Agreement with CV. Bangkit Jaya Lestari was sighted for school

renovation. Training record available.

Principle 5: Environmental Responsibility and Conservation of Natural Resources and Biodiversity

Criterion by Audit

Summary

AMDAL is prepared for the entire complex that dated in 2011. RKL

and RPL submission to the local authorities was in place and

sighted as evidence. HCV assessment has also been done for the

entire complex with sufficient inputs produced during the audit.

Waste management being controlled and monitored effectively in

all the operating units and records are maintained by respective in

chargers. The mill has documented fossil fuel usage and

communicates the figures with HQ.







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ASA 4 5.1 RKL-RPL for both covers effectively of the environmental and

social aspect. Sighted the DPPL [Dokumen Pengelolaan dan

Pemantauan Lingkungan] from Oct 2007 to Jan 2008, conducted

by PT Bentang Cakrawala. Company was committed to

environment aspect. Activity such as planting jungle tree species

alongside the river, monitoring HCV, birds and protected animals

is carried out by monthly. To date there are 608 jungle trees

planted along Sikilang River and will be monitored once a year.

ASA 4 5.2 Identification of HCV conducted by consultant - Aksenta in April

2008 HCV areas total 752.17 Ha. Area A 154.96 Ha, Area B 597, 21

Ha. Type HCV 1, 3, 4 and 5. Mammal 8 Species, reptiles 9 species,

birds 38 species. From all species monitored, 10 species of birds is

protected, 1 mammal is protected (North Sumatran leaf monkey).

Internal monitoring of protected animal done in every month.

Meeting with the central management every year to review the

HCV areas and habitats. In estate on every year there will be a

stakeholders meeting on HCV and observed the latest meeting

was held in August 2013 with attendance record along with HCV

socialization with community. Signage of Forbidding any use of

chemical in HCV area and riparian zones. No burning, illegal

hunting. Sign boards are monitoring by check list every three

months. Internal monitoring is done by audit and certifications

together with Pak Junef Murtri S. - Staff Sustainability

ASA 4 5.3 In estate the waste identifications document be revised per

semester. Total 22 checkpoints is identified to potential generate

the waste. Source of waste includes pre-mix centre, fertilizer

store, oil store etc. Waste management includes recycle

programme in progress. Segregation of waste is carried out from

housing, office until land fill site. Schedule also is followed by

collector 2 days once strictly. Collaborations with third party to

sell back recycle items to reduce the waste in estate. Schedule

waste is collected by PT. Primanru Jaya. Refer to P4.

ASA 4 5.4 Electricity from Bio gas energy / power supply to workers started

in April 2013. Biogas power being distributed on 24 hours and

record is to be on monthly basis. Sighted a map on CDM supply,

to workers living quarters and to school. Efficiency usage of Palm

Methyl Ester (PME) for March 2014, Actual consumption is

recorded monthly. Efficiency of energy consumption and records

of energy usage per ton COP and PK from 2013 and up to March

2014 are updated and verified. In estate PME is replacing fossil

fuels. Transportations: dump truck, mini tractors use Palm Methyl

ester (PME).

ASA 4 5.5 Policy on “No burning” well implemented. Appropriate signages

maintained surround the estate and mill. Condition to not use the

fire well mention in SPK of replanting work. It is found and verified

the procedure of emergency response to land burning

(Penanganan Keadaan Darurat) No. OSH/01.01/2.4 dated July,

20th 2012. This procedure is about every actions need to be taken

due its fire existence and also its organizational structure. Fire

extinguisher well maintained sighted in proper places.

ASA 4 5.6 Sources of the emission well identified in the identification matrix

dated on 02/01/2014. The category of emissions rage from noise,

air, reusable, hazardous waste and domestic waste. The noise

emission test carried out on 03/03/2014for sterilizer, engine







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room, kernel recovery process and biogas plant.

The maximum reading was recorded at engine room [88.5dBA].

Sighted also the chimney test result for both boilers [1 & 3] dated

on 07/11/2013 [ref: 1650/BPKIMI/BRSIP/LAB/XII/2013. Verified

the latest 3 months record [Jan – Mar 2014] for BoD reduction,

Month inlet outlet

Jan 164.7 50.32

Feb 271.7 116.2

Mar 142,2 121.3

As for noise reduction, the most significant area is engine room,

hence tighten measure for PPE usage [ear muffler] being monitor.

For the air pollution, the dust collector monitoring interval is on

monthly basis.

Sighted the fossil fuel usage reduction programs and below is the

overview since 2011.

2011 2012 2013 Mar’ 14

Fossil fuel 692.834 682.256 43.041 0.00

CDM - - 507.650 100.602

Since the introduction of Aeroflow in 2008, the BOD level is within

300ppm [standard 5000]. The pH is being monitor on daily basis

before proceeding for land application.

Principle 6: Responsible Consideration of Employees and of Individuals and Communities by Growers and

Millers

Criterion by Audit

Summary

SIA conducted effectively covering the socio economy; culture

and health of surrounding people who may be affected by

plantation activities by company either from negative or positive

impact. Policy for sexual harassment displayed and

communicated. Violence towards women mentioned clearly in

the group policy. CSR programs are well executed and budget

against the plan sighted.

ASA 4 6.1 SIA was initially done by Aksenta from 20/04/2008 - 26/04/2008.

The assessment output categorized into social, economic and

health. There is a plan available to mitigate the negative impacts.

As for the estate, the RKL and RPL evidence the assessment done

in accordance to local government’s requirement that to be done

in every 6 months.

Noted there was no change in the operational scope. Estate has

to provide monitoring report called RKL & RPL every semester as

per Indonesian Laws and Regulations. This assessment is

improvement from DPPL and covered environment such as

pollutions, animals, sources of pollution, best agricultural

practices, riparian zone management and land burning

monitoring.

From social aspects is cover about workers and smallholders such

as labour conditions, water consumption, financial income and

people perception, CSR and providing necessary infrastructure to

local people. The monitoring of soil, HCV and conservation area,

drinking water and water way status being included in report on

6 months interval.

On operation side, assessment also includes herbicide and

fertilizer applications, IPM, pest disease and weeds and biological







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control agents. This assessment also cover to safety requirement

in mill and estate area such as providing workers with PPE,

enforcement of SOP’s, providing trainings and medical checkup

for the workers.

ASA 4 6.2 AGR-SOP/03.01/3.26.1 is available for Program Konsultasi Berkala

Dengan Stakeholder. AGR-SOP/03.01/3.10.0 established for

Penyampaian Keluh Kesah Pekerja. Other than that, the AGR-

SOP/03.01/3.9.0 developed for Keluhan & Komplain External. 151

list of stakeholders from the nearby villages. Government

provincial and district level, Police, Army, Bank, In house worker

union, suppliers, contractor & hospital. Last updated Jan 2014

approved by Humas Mr. Ibrahim. External Socialisation to the

nearest villages done and sighted report “Stakeholder Konsultasi

Report” dated 19.6.2013. Sighted some discussion within the

villages and organization Ex: Explanation of CSR; Awareness of

SOP; etc. Head of HUMAS (Public Relation), Mr. Ibrahim.

ASA 4 6.3 The SOP, AGR-SOP/01.01/5.1 dated on 01/03/2014 is related to

the Complaint is in place along with the complaint flow chart to

manage the complaints. Also sighted procedure no. AGR-

SOP/01.01/6.1 dated on 1 January 2008. No disputes recorded.

No complaint recorded for last 3 years. The established procedure

of AGR-SOP/01.01/1.0 for Land Compensation sighted.

ASA 4 6.4 AGR-SOP/01.01/1.0 Ganti Rugi Lahan dated 1.7.2012. No

compensation occurred.

ASA 4 6.5 Sighted the minimum wage instruction “Upah Minimum Provinsi –

Sumatra Barat 2014” from the Governor [ref: 562-846-2013]. Rp.

1,490,000. All workers will receive monthly pay slip mentioned

total wages of the workers. Pay slip and contract workers name

Ernawati and Siti Kolipa was verified. Work term and conditions is

agreed and documented into “Perjanjjian Kerja Bersama”

between company and workers union.PKB for period 2014 – 2016

is verified.

Sighted the monthly salary record for Feb 2014, sampled for

sterilizer operator, Bpk. Yuliasmi [00080003] whom being

deducted on insurance [accident, retirement, fatality

&retirement] Rp 32,700.00 [2% from employee + 4.54% from

employer and for health insurance 0.5% from employee and 4.0%

from the employer. The new salary paid in Feb 2014 along with

the increment of Rp 140,000.00 and the overtime rate incurred.

The company provides housing for both staff and workers.

Facilities provided as:

� Mosque

� Electric – subsidy till 900KwH

� Water – Free

� School bus for children to go to school (Secondary school) 10

km ] with driver and attendant

� Polyclinic –

Kindergarten & Primary School is under the Yayasan Anwar

Karim. Work agreement [for heavy equipment rental] No 001-

HO/PT.AGR/P042/III/2013. Sighted:

� The contractor must provide insurance to their worker as per

Indonesian law - Law UU 13

� Environmental Law







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� Safety & Health Law – UU K3

ASA 4 6.6 Policy no. MM-POD/01.01/1.3.3 title “Kebebasan Berserikat”

dated on 15 April 2008. The policy is based on Indonesia

regulation (UUD) 1945 item 28 & 28 E and Labour laws

(Ketenagakerjaan No. 13 year 2003 item 104 says every workers

have a rights to create or join a workers union. Estate

management have implement monthly meeting with the workers

union. Meeting between workers union with management held

on monthly basis. Last meeting on 12 March 2014. Issue was

raised such as delayed to pay the loan by management thru ATM

machine.

ASA 4 6.7 Sighted the evidence of communication of the Policy for minimum

age restriction dated 18.4.2012 signed by Director Mr.Lim Teong

Kwee. Requirement of the staff and employee recruitment

minimum age is 18 yrs. old. Randomly check of workers date of

birth in records and not found any worker age below 18 in PT.

Agrowiratama Sei Aur estate and in the mill.

ASA 4 6.8 Policy no. MM-POD/01.01/1.3.4 title “Kesetaraan Kesempatan”

(equal opportunities) dated on 15 April 2008 is well implemented.

Policy for equal opportunities sighted dated 13.3.2012; and a

separate Discrimination policy dated 13.3.2012. Displayed and

communicated. Signed by Director Mr. Lim Teong Kwee.

“Lowongan Kerja” sighted include restriction through gender &

“perbedaan lainnya”;

ASA 4 6.9 Revised Sexual Harassment and Violence policy dated on

21/10/2013. Violence towards women mentioned in MM-

POD/01.01/4.3.0 under Committee Gender procedure. Policy for

protection of reproductive rights sighted dated 13.3.2012.

Displayed and communicated. Gender committee established to

implement the sexual harassment policy.

Interviewed Gender Committee Head is Ms Ernawati and noticed

that meetings and trainings conducted. Last minutes of meeting

dated 14.03.2014; seen agenda on review of management plan

2014; Sexual Harassment and Violence case; Pregnancy &

Breastfeeding. A SOP derived ref to AGR-SOP/01.01/5.4 under

Committee Gender procedure; explaining procedures of sexual

harassment & violence by identifying type of harassment & report

to Gender committee within 24 hours & an investigation will be

conducted by management team & if found guilty, discipline

action will be taken.

ASA 4 6.10 Sighted the FFB price instruction from Pemerintah Provinsi

Sumatera Barat [ref: 521.3/437.1/PPH.2/III-2014 dated on

28/03/2014. The listing indicates the palm from 3 years to 24

years [Rp 1.541,01 to Rp 1.873,40]. FFB prices are controlled by

“Authority of Sumatera Barat Province” which will revise every

month. Prices will communicate to Plasma farmers by circular on

monthly. Ex: Latest circular from government dated on 28 March

2014 no. 525/K.688/2014.

During mill visit, observed the price list display at main entrance

[notice board at guard house]. Work agreement with PT Sejahtera

No. 003/SPK/POM/XI/2013 for civil work for upgrading cooling

pond; dated 27.11.2013. Work agreement is agreed both parties

with term and condition is included into a contract.







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All the payment is made by financial Department in Central. Letter

no. 001/SPK/POM/IV/2013 are acknowledgement from Financial

Dept to mill as payment has been made. The payment amount is

verified in estate’s Annual Budget. Agreement sighted for 3

smallholders:

1). Ref: 001/KKPA-KSB1/I/2014, dated 02/01/2014 and

represented by Bpk Nasran.

2). Ref: 002/KKPA-KSBSAMB/I/2014, dated on 02/01/2014 and

represented by Bpk Ahmad Zirwan.

3). Ref: 001/KKPA-KSDBS/I/2014, dated 02/01/2014 and

represented by Bpk Raspudin Aras.

ASA 4 6.11 The CSR program covers both the estate and mill. A list of

breakdown seen along with the photograph evidences. Sighted

the budgeted amount for CSR in year 2013 was Rp

1.664.578.000,- and the realization was Rp 1.200.396.620,-. As for

2014, it is budgeted for Rp 1.967.005.685,-.

In 2013, 28 CSR programme in infrastructure was done by the

company. Samples as:

� Mosque renovation aid – February 2013 Rp. 23, 000,000

� Construction of religion education centre – March 2013

6,200,000

� Drainage construction at community field – July 2013

� Road maintenance for local community at Jorong Padang

Timbalun – April 2013

� The budget for CSR is prepared by Head of Humas Plantations

every years and be approved by estate director.

� CSR realization document on 2013 available and verified.

Principle 7: Responsible Development of New Plantings

Criterion by Audit

Summary

Oil palm plantings are from the land purchased from the local

communities. These lands have been previously planted with

other crops such as rubber, cash crops and shrub land. Hence

there were no new plantings involving forest land.

ASA 4 7.1 Sighted the initial AMDAL covering the socio economy; culture

and health of surrounding people who may be affected by

plantation activities by company either from negative or positive

impact. It is found that local authority has signed the letter as

evidence. There is a smallholder development plan established at

the time of assessment.

ASA 4 7.2 There is no new land surveyed for the growing of oil palm.

However there are sufficient SOPs available for the soil and land

type that being implemented at all operating units. A general soil

map, slope classes map and elevation map, to provide a general

recommendation for soil and water management practices to

overcome soil limitations are available.

ASA 4 7.3 Maps are available to show that land clearing avoided identified

HCVs. There was no forest areas converted since November 2005.

The lands were on land purchased from the local communities

land planted with rubber, cash crops and shrub land etc.

ASA 4 7.4 The company has prepared soil maps which include fragile soils,

excessive gradients and peat soils. SOPs are in place to protect

fragile and marginal soils. Terracing implemented above 6° as per

the topographic map. Field inspection confirmed on the







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implementations.

ASA 4 7.5 SIAs and EIAs developed with participation form affected parties

and include an analysis of both positive and negative impacts.

ASA 4 7.6 The company has a procedure to identify the people who may be

entitled to receive compensation.

ASA 4 7.7 The company has a zero burning policy for preparing land for

planting and has a procedure in place to respond to land burning

on neighboring properties.

Principle 8: Commitment to Continuous Improvement in Key Areas of Activity

Criterion by Audit

Summary

There are many improvement programs as mentioned in

respective principles published in their annual company

presentation. Both mill and estates has sufficient records and

documents to justify the achievements.

ASA 4 8.1 As part of improvement, many numbers of SOPs and PODs revised

and effectively documented of the changes. The continuous

improvement dated on 01/04/2014, divided into air quality

measurement, waste water management, water usage in the mill,

electricity usage for per ton of FFB, reduction in fossil fuel usage,

reduction in chemical usage and POME. The chemical usage for

water treatment plant and boiler. Sighted the monthly

consumption for boiler -Nalco 3273, 22310, 2811 and Caustic

Soda. As for water treatment plant, the use of Nalco 8173,

Tawas/Alum and Salt Non Yodium.

4.2.1: Summary findings for Scheme Smallholders (KKPA) KSBSAMB

The assessment team conducted a thorough assessment of all the principles, criteria and indicators. Evidence was

sought for conformity with the RSPO Indonesian NI of both systems and their implementation. The findings column

reflects the findings in accordance with each criteria and indicator and the comments column includes some of the

evidence found. (The full and complete checklist contains some confidential information and is an extensive

document used for peer review and by the certification decision panel and certifier). Where non conformity was

found, a summary of the non-conformity is included.

Principle 1: Commitment to Transparency

Criterion 1.1

Scheme Manager provide adequate information to other stakeholders on environmental, social

and legal issues relevant to RSPO Criteria, in appropriate languages & forms to allow for

effective participation on decision making.

Documented both parties agreement between KKPA-KSBSAMB and PT. Agrowiratama (as scheme

manager of the KKPA) is verified during the 4th annual surveillance audit. It is well implemented.

The following both parties documentation were checked and verified during the 4th anuual

surveillance audit:

• Document agreement no. 01/KSBSAMB/III/2004 and no. 036.Hm/AG/III/2004 dated on 11

March 2004;

• Legal permit established the KKPA-KSBSAMB no. 245/BH/KDK.32/XII/2003 dated on 29

December 2003;

Letter of the FFB price from the Ministry of Forestry and Agriculture no. 627/Kpts-II/98 dated on

11 September 1998. A document evident of land titlles for KKPA-KSBSAMB and applicable. The

land of KKPA-KSBSAMB occupied total 500 Ha. It is accordance with the agreement. The letter of

landtitles/smallholders by scheme manager (PT. Agrowiratama) to KKPA-KSBSAMB dated on 08

March 2004. SEIA (Analisa Dampak Sosial dan Lingkungan) for Smallholders is available. The survey

was conducted by external consultant (AKSENTA) in April 20 -26, 2008.

Criterion 1.2:

Management documents are publicly available except where this is prevented by commercial

confidentiality or where disclosure of information would result in negative environmental or

social outcomes.







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All legal permits are available publicly at the KKPA office, such as: land certificate (land title), Ijin

Badan Hukum/ Akta Pendirian Perusahaan (article incorporation), DPPL (Social and Environmental

Impact Assessment) incorporated in estate, TDP (Cooperative registration), Surat Ijin Usaha

Perdagangan – SIUP (Trading permit), Surat Ijin Tempat Usaha-SITU (Placing Operational Permit).

The Work Agreement Contract “Surat Perjanjian Kerjasama” (Memorandum of Understanding)

between KKPA KSBSAMB and PT. Agrowiratama was signed.

Principle 2: Compliance with applicable laws and regulations

The maps showing land allocation for KKPA (smallholders) is available per farmer group. The legal

ownership of the land (land title certificates/sertifikat hak milik) from all individual farmer

member are presented. Each farmer has 2 ha (average).e.d land title (land certificate) owned by

Mr. Bosa (member of KKPA KSBSAMB). The land ownership is very clear. Sertifikat hak milik (SHM)

from BPN (Badan Pertanahan Nasional). So far no claimed or contested land.Interview with the

farmers group so far there is no dispute. Not relevant to be verified as KKPA-KSBSAMB scheme

applied.Interview with scheme manager for KKPA-KSBSAMB that the lands acquired must be clear

in the ownership as requirement before the MOU or agreement signed between company and

KKPA. Land title is SHM (highest level), it is very clear in land ownership legal document.No

indication customary land is available in KKPA plantation area.

Principle 3: Commitment to long-term economic and financial viability.

The scheme manager and cooperative prepared the budget for 3 years (2013-2015), covering:

productivity (ton/Ha/Year), cost of fertilizing (Rp/year), production estimate (ton/year),

transportation cost and harvesting cost, those documents were approved by Leader of

cooperative. Scheme Smallholders’ organization (cooperative) was involved in saving towards

future replanting and for Corporate Social Responsibility (CSR) funds. Scheme smallholders

received training from scheme managers in relating to the management plantation method to

optimize continuous productivity, technical support, training and advice on best agriculture

practices.

Principle 4: Use of appropriate best practices by Scheme Manager

Criterion 4.2 Practices maintain soil fertility at, or where possible improve soil fertility to, a level that ensures

optimal and sustained yield.

The fertilizer were supplied and managed by PT. Agrowiratama directly to smallholders as

recommended by scheme managers. The record of type and volume of fertilizer application is

available. Record of FFB production in smallholder’s plantation maintained for last 5 years.

Records are separated by each group, actual production and ton per hectare. Records showed

increasing of production from 2010-2013.

Criterion 4.6 Agrochemicals are used in such a way that does not endanger health or the environment. There

is no prophylactic use, and where agrochemicals are used that are categorized as World Health

Organization Type 1A or 1B, or are listed by the Stockholm or Rotterdam Conventions, growers

are actively seeking to identify alternatives, and this is documented

The commitment management of mill and estate to implement permitted using agrochemicals

regulated by The Minister of Agriculture is evident. Also using agrochemcals for Smallholders were

registered. Its showing evidence on “Daftar Penggunaan Bahan Kimia (Agrochemicals) Tahun

2014”.There is one of agrochemicals for Rodentisida (Sime Ebor Baits 0.05 BB) with registration

no. R1.01120120113997 is extremely dangerous. However, the comsumption is limited and well

monitored controlling. Record of pesticide used is kept in estate office for smallholders and a

monthly tabulation released for monthly comparison.

It shown record of agrochemicals in March 2014, for HER META PRIMA 20 WDG

• a.i [Metsulfuron methyl 20%,

• LD 50 [mg/kg] – 5000

• Used 2.90 Kg/Ltr per Month > total a.i 0.58 per Month

• Planted area – 500 Ha

• Pesticide [L/Ha] - 0.005800000 per Month

• Pesticide [L/Ton] - 0.002862388 per Month

• Pesticide Toxicity Unints [Kg/LD50/FFB] – 0.000000114 per Month







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The management of smallholders provided sufficiently working equipments concerning on safety.

There list of safety equipments for smallholders workers on “Pedoman Standard Alat Kerja dan

APD Tahun 2014” Ref no. RGM I-HQ/100/IX/2013 dated on 21 September 2013. The management

of smallholders well preparing to kept and disposed of pesticide containers accordance standard

operation procedure (AGR-SOP/01.01/7.6 dated on 24 January 2008). Used agrochemical

containers will be stored within 90 days before sent to waste collector company. The record of

despacth used agrochemical is maintained and checked in place. No records available.

There was no accident occured due to pesticide toxiciy for smallholder operators. The

documented working instruction of pesticide spraying (IKA/22//AGR/2014) approved by

management of PT. Agrowiratama dated on 02 January 2014. Total 66 workers (smallholder) were

trained for limited pesticide in January 27, 2014. The training was done by Chief of K3 PT.

Agrowiratama. Training record of limited pesticide for for Rodentisida (Sime Ebor Baits 0.05 BB)

and MSDS Sime Ebor Baits 0.05 BB are available and checked in place.

Principle 5: Environmental responsibility and conservation of natural resources and Biodiversity

Criterion 5.1 Aspects of plantation and mill management that have environmental impacts are identified, and

plans to mitigate the negative impacts and promote the positive ones are made, implemented

and monitored, to demonstrate continuous improvement

SIA (Social Impact Assessment) for Smallholders is available. The survey was conducted by

external consultant (AKSENTA) in April 20 -26, 2008. Environmental Impact Assessment (revision)

documents (AMDAL document and RKL & RPL document) are available period 2013 – 2014 and

approved 25 January 2014. The environmental impact assessment and HIRA_OSH document

covers scope for KKPA-KSBSAMB. Regular report on environmental management is presented.

Letter of report submission to Envoronmental Dept officer (Badan Lingkungan Hidup) is available

as evidence to report regularlyevery 6 month basis.

Criterion 5.5 Use of fire for waste disposal and for preparing land for replanting is avoided except in specific

situations, as identified in the ASEAN guidelines or other regional best practice

Under scheme manager (PT. Agrowiratama) policy for zero burning on replanting. During this

audit no replanting activity done. The management smallholders established a policy for zero

burning for replanting. The policy was approved and signed by chief of KKPA-KSBSAMB dated on

27 September 2007. KKPA-KSBSAMB has fire fighting team and trained by scheme manager (PT

Agrowiratama). The procedure (AGR-OSH/01.01/2.4, dated on 20 July 2012) trained to KKPA

members by company.Training was conducted in January 29, 2014. Record of emergency drill is

available in place and checked. Fire extinguishers are provided in KKPA-KSBSAMB office. Estate

(scheme manager) will support the complete equipmets if fire happened in KKPA-KSBSAMB area.

Land preparation as company policy is Zero burning. For KKPA-KSBSAMB plantation area,

replanting operation will be handled by scheme manager (PT Agrowiratama).

Principle 6: Responsible consideration of employees and of individuals and communities affected by scheme

smallholders

Criterion 6.4 Any negotiations concerning compensation for loss of legal or customary rights are dealt with

through a documented system that enables indigenous peoples, local communities and other

stake holders to express their views through their own representative institutions

No dispute was noted during this assessment.

Criterion 6.6 The employer respects the right of all personnel to form and join trade unions of their choice

and to bargain collectively. Where the right to freedom of association and collective bargaining

are restricted under law, the employer facilitates parallel means of independent and free

association and bargaining for all such personnel.

The management established a policy of no restriction for workers and contractors to join unions

for KKPA – KSBSAMB (Koperasi Sawit Bosa Sungai Aua Manjunjung Bilang) that documented on

“Kebijakan Kebebasan Berserikat”. The policy is approved and signed by Chief of KKPA-KSBSAMB

dated on 12 March 2012. There are 34 persons as Member of KKPA-KSBSAMB involving joins to

the union (PUK.SPPP-SPSI) since January 2014.

Criterion 6.10 Scheme managers deal fairly and transparently with smallholders and other local businesses.

Any complaints that received by smallholders from nucleus estate and other local business are not







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exist. However, there is complaint recorded on “Saran-Saran Anggota dari KKPA” . There have also

feedback from third parties that recorded on “Anjuran Instalasi Lain”. The price of FFB is

determined by local goverment (Pemerintah Provinsi Sumatera Barat – Dinas Perkebunan) that

documented on letter no. 521.3/4371/PPH.2/III – 2014 dated on 28 March 2014.

The list of FFB prices base on planted years on table below

Planted

years

Price of

FFB (Rp)

Planted

years

Price of

FFB (Rp)

3 1,541.01 9 2,071.80

4 1,742.18 10 – 20 2,074.82

5 1,842.17 21 2,004.95

6 1,863.43 22 1,998.01

7 1,877.13 23 1,971.31

8 2,043.84 24 1,873.40

There is document on the premium prices for FFB smallholders certified by letter of Estate

Director no ref. ED/014/IV/2014, dated on 01 April 2014. These letter was communicated and

socialized to all smallholders on April 2014. The management mill and estate will be paid for the

FFB smallholders certified for Rp 3/Kg of FFB. Smallholder of KKPA-KSBSAMB organization chart is

evident on “Struktur Organisasi KSBSAMB dated on 06 July 2013”. “Berita Acara Rapat Anggta

untuk Pemilihan Pengurus Koperasi Sawit Bosa Sungai Aua Manjunjung Bilang Nagari Sungai AUA

Kec. Sungai AUA” on July 06, 2013.

Minute of meeting “Rapat Anggota Koperasi KKPA-KSBSAMB” is recorded on July 05, 2013. The

evident is available of contract payment slip for KKPA (KSBSAMB) on March 2014; Payment of

Jamsostek for KKPA on March 2014 is paid by Bank transfer (Pembayara Iuran Jamsostek Bulan

Maret 2014). Payment slips of salary to smallholders (KKPA-KSBSAMB) on March 2014 for MS.

Aldina (Up Keep), Salary is given amount Rp 1,492,000. According to Decree of governor Sumatera

Barat No. 562-846-2013 regarding Minimum payment of Sumatera Barat Province 2014 is, Rp.

1,490,000. She does member of jamsostek registered no 10031713836 since 09 November 2010.

List employess of smallholder (KKPA – KSBSAMB) 2014, Total of number KKPA – KSBSAMB are 65

employees. The company did not conduct any credit of payment to smallholder. Instead, the

credit is given internally to smallholders employees. There was evidence of road maintenance and

transportation for smallholders FFB. The maintenance schedule of KKPA-KSBSAMB in January –

February 2014 for 2,490 Metres long for raod compacting works was done by road contractors

(CV.Putra Hadia). These contractor has been evaluated and assessed to the competence criteria of

contractor performance.

The hand over letter of road compacting works is documented available on “Berita Acara

Pemeriksaan Hasil Kerja Kontraktor “ contract no. 005/KKPA-KSBSAMB/P011/II/2014. Records

show the planting was done in 2005 (500 ha); next replanting is planned 25 years according to

Agronomy Business Plan.

Principle 7: Responsible development of new plantings

Not applicable as no new planting has taken place.

Principle 8: Commitment to continuous improvement in key areas of activity

Criterion 8.1 Scheme Managers regularly monitor and review their activities and develop and implement

action plans that allow demonstrable continuous improvement in key operations

A continuous improvement plan has been incorporated in the annual budget which includes road

improvement by grading – compacting.

4.3 Non-conformity Raised During this Audit and Any from the Previous Year, if applicable

This section gives an over view of new or revised non-conformities raised during this audit and of action taken to

close out non-conformities raised during the previous audits, if applicable

• If a minor-non-conformity raised at the last audit, is not closed out, then this will be raised to Major status

and the company given 60 days to close this out.







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• The NC number is comprised of 2 parts to include the year in which the NC was raised as well as a

sequential number.

4.3.1 Non-Conformities Identified during this Audit

Non-were raised during this audit.

4.3.2 Non-Conformity Identified during the last ASA, not applicable for MA

Non-were raised during the last audit as this is the Main Assessment.

4.3.3 Observations Raised During this Audit

Non-were raised during this assessment.

4.4 Issues that were raised during the Stakeholder Consultation, if any

Stakeholders were either informed by the client or by Control Union via the RSPO website.

• For Main Assessments, a 30 day Stakeholder consultation announcement is published on the RSPO website

prior to the audit. The same announcement is circulated by the client prior to the audit

• For subsequent Annual Assessments, it is based on stakeholders reading the approved public summary

reports available on the RSPO website, the client’s procedures in receiving on-going feedback or if feedback

was sent directly to Control Union prior to an audit or thorough RSPO complaints procedures.

During each assessment, the audit team will review the company’s implemented procedures in receiving

feedback and will execute field visits and interviews. Not limited to the following questions, any feedback

received is reviewed and summarized in this summary report for either Part 2 – Partial Certification or Part 4 –

Assessment Findings above or noted below, if applicable:

1. Do you have any remarks on the RSPO standard?

2. What is your relation with the applicant?

3. Are there any plantation or mill management practices that affect you?

4. Do you consider any management is in conflict with the RSPO principles and criteria?

5. Do you have any suggestions for management?

6. Are you aware of any HCV in the plantations or in adjacent land?

7. Are you aware of any endangered or rare species?

8. Are there any adverse (or positive) effects on local communities?

9. Additional comments?

11. Do you have any comments about the assessment team and would you like to meet with them?

12. Do you have any comments for the client’s management of any other plantations?

Subject raised Company response and

proposed action to be taken Audit team findings

PART 5: RSPO SUPPLY CHAIN CERTIFICATION

The palm mill mentioned in the scope of the audit was audited against the requirements of the following:

RSPO Supply Chain Certification Systems. November 2011

RSPO Supply Chain Certification Standard. November 2011

5.1 POM Included In The Scope Of The Audit

Name

Palm Oil Mill

Mill

Capacity Location Supply Chain Model

(POM) MT/Hour Address (IP or SG or MB)

PT Agrowiratama 45

Jorong Aie Aji, Nagari Sungai Aua,

Kecamatan Sungai Aua, Kabupaten

Pasaman Barat, Propinsi Sumatera

Barat, Indonesia.

IP, SG, MB







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5.2 Confirmation Of The Company’s Summary Of Annual Certified Volume Of RSPO Certified Palm Oil And

Palm Kernel Over A Specified Period

Product CPO (MT) PK (MT) Specified 12 month period

CU Code

POM 1 47,983 11,996 Forecasted volume from June 2014 – June 2015

5.3 Summary Report Including A Brief Description Of The Scope Of Certification

Based on the information from marketing, the Buyer will send “Surat Kuasa Pengangkutan” to the mill for

necessey despatching. On despatch day, the appointed logistic driver will pass the “D/O” to the security guard

which will let the security guard issu the “Izin Masuk” that to be sign by mill manager. Before the despatching,

the security guard and despatch staff will inspect the vehicle by using “ Berita Acara Penimbanga” and “ Berita

Acara Pemeriksaan Kenderaan” nrespectively that will permit to fill in the CPO. Later the despatch staff to take

sample for laboratory inspection and perform the sealing. Finally the load to be weighted and ticket printed for

reference.

5.4 Monthly Records of Certified and Uncertified FFB Received Since the Last Audit

If this is the 1st Main Assessment, the figures used are from the last 12 months.

If this is an Annual Surveillance Assessment, the figures used are since the last audit.

No MONTH-YEAR Certified Supply Bases

(MT)

Uncertified Supply Bases (MT), if any Total (MT)

1 April 2013 15,221.01 15,221.01

2 May 2013 16,231.98 16,231.98

3 June 013 18,871.65 18,871.65

4 July 2013 21,940.26 21,940.26

5 August 2013 18,905.15 18,905.15

6 September 2013 15,910.96 15,910.96

7 October 2013 17,483.72 17,483.72

8 November 2013 17,413.57 17,413.57

9 December 2013 14,445.15 14,445.15

10 January 2014 17,065.66 17,065.66

11 February 2014 14,375.66 14,375.66

12 March 2014 16,699.74 16,699.74

TOTAL 204,564.51 204,564.51

5.5 Monthly Records of Certified CPO and PK Produced Since the Last Audit

If this is the 1st Main Assessment, the figures used are from the last 12 months.

If this is an Annual Surveillance Assessment, the figures used are since the last audit.

No MONTH-YEAR Certified CPO (MT) Certified PK Total (MT)

1 April 2013 3,444.81 908.43 4,353.24

2 May 2013 3,682.57 982.92 4,665.49

3 June 013 4,299.85 1,191.36 5,491.21

4 July 2013 5,119.34 1,323.86 6,443.20

5 August 2013 4,372.25 1,249.48 5,621.73

6 September 2013 3,877.32 1,054.67 4,931.99

7 October 2013 4,205.51 1,122.35 5,327.86

8 November 2013 4,142.98 1,127.88 5,270.86

9 December 2013 3,421.65 872.7 4,294.35

10 January 2014 4,099.64 1,101.79 5,201.43

11 February 2014 3,534.05 909.84 4,443.89

12 March 2014 4,025.65 1,062.61 5,088.26

TOTAL 48,225.62 12,907.89 61,133.51







Tel: +603-3377 1600 / 1700

5.6 Records of Certified CPO & PK Sold under UTZ eTrace to Buyers since the Last Audit, if Any

No Buyers Name UTZ eTrace Trading No Certified CPO

(MT) Sold

Certified PK

(MT) Sold

1 PT Wira Innomas TR-b3795da5-67aa 210.35

2 PT Wira Innomas TR-cce04f87-54f3 140.13

3 PT Wira Innomas TR-f6dea424-4ad3 1,083.75

4 PT Wira Innomas TR-f0aeab96-2c95 1,419.55

5 PT Wira Innomas TR-9640b2eb-9ec4 207.38

5.7 Non-Conformities Identified during this Audit

Timeline for compliance:

1. All non-conformances observed during an audit shall be classified as ‘major’ since all requirements for

Supply Chain certification have to be met before granting certification.

2. For Main Assessments, all non-conformances shall be addressed satisfactorily by the operation before

certification may be granted by the certification body. If non-conformances are not addressed within three

(3) months of the audit, a full re-audit shall be required. The certification body shall assess the effectiveness

of the corrective and/or preventive actions taken before closing out the non-conformances.

3. For Annual Surveillance Assessments, non-conformances raised after the certification are serious (i.e. must

be considered as a major) and the integrity of the RSPO Supply Chain Certification is at risk. A maximum of

one month is to be given to the certified client to satisfactorily address the non-conformance. The

certification body shall assess the effectiveness of the corrective and/or or preventive actions taken. Should

the nonconformance not be addressed within the one-month maximum timeframe, a suspension or

withdrawal of the certificate and a full re-audit may be necessary.

4. If no non-conformances are observed at an audit or when the corrective action plan has satisfactorily

addressed raised non-conformance(s), the client shall be recommended for (re-) certification.

Non-were raised during this audit.

5.8 Description of the Organizational Management Systems

Including organizations, management and operational systems to ensure compliance with the RSPO Supply

Chain Certification Systems and Standards as detailed above

The management continually improving the established RSPO Supply Chain standards since the main

assessment. As part of continuous improvement, many trainings being planned in the mill. eTrace data

management is managed by HQ [Medan].

5.9 Final Certification decision by Control Union for the RSPO SCCS Audit of the POM

Recommendations made: Yes

Summary of non-

compliances: Nil

Certification status of client: The POM included in the scope of this audit demonstrated full compliance with

the RSPO SCCS. With effect from the certification date given in the RSPOPC

certificate, this POM mentioned in

the scope of this report is considered to be certified in accordance with the

RSPO SCCS.

PART 6: CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY

6.1 Date of next ASA

The provisional date for the next ASA is: Nov 2014

6.2 Date for Closure of Non-Conformities

• All major NCs to be closed by: No NC raised







Tel: +603-3377 1600 / 1700

• All minor NCs to be closed by: No NC raised

6.3 Signing by the Client

I the undersigned, being the most senior relevant management representative of the operation seeking or

holding certification, agree with the contents and audit findings as presented in this document .

I also confirm:

• Acceptance of liability in execution of the instructions given.

• That this company was made aware that the findings of the audit team are tentative; pending review and

decision making by the duly designated representatives of Control Union Certifications.

• That during the closing meeting all agenda items was covered by the Lead Auditor.

Acknowledged by:

Name: Dr. Gan Lian Tiong.

Position: Head of Sustainability

Date: 11 June, 2014 Signature

6.4 Signing by the Lead Auditor

I the undersigned, being the Lead Auditor, confirm that this report is an accurate record of the findings and of

the closing meeting. I further confirm that the summary of the findings as presented in this report are a true

representation of the actual findings of the audit team.

Acknowledged by:

Name: Mahaswaran Maliyapan

Position: Lead Auditor

Date: 17/04/2014 Signature

6.5 Signing by the Certifier

I the undersigned, being the Certifier, confirm that the information and conclusions included in this report have

been prepared in good faith and that the certification decision has been based upon this information.

Acknowledged by:

Name: Gerben Stegeman

Position: Certifier

Date: 11-09-14 Signature







Tel: +603-3377 1600 / 1700

PART 7: APPENDICIES

Appendix 1: Location Map for this Certification Unit

From 1.9, the location map(s)

Map 1: Map showing the location of estates (PT. Agrowiratama) in Indonesia..







Tel: +603-3377 1600 / 1700

Map 2 : Map showing the location of PT Agrowiratama in West Sumatra, Indonesia.

Map 3 : Map showing the location of PT. Agrowiratama estate and palm oil mill with surrounding entities.







Tel: +603-3377 1600 / 1700

Map 4: Map showing the location of Scheme Smallholder KSB

Map 5 : Map showing the location of Scheme Smallholder KSBSAMB







Tel: +603-3377 1600 / 1700

Map 6 : Map showing the location of Scheme Smallholder KSDBS







Tel: +603-3377 1600 / 1700

Appendix 2: List of Abbreviations

AMDAL Analisis Mengenai Dampak Lingkungan

BOD Biological Oxygen Demand

BRC British Retail Consortium

CHRA Chemical Health Risk Assessment

CoC Chain of Custody

COD Chemical Oxygen Demand

CPO Crude Palm Oil

CSR Corporate Social Responsibility

CU Control Union

CUC Control Union Certifications

DOE Department of Environment

EFB Empty Fruit Bunch

EIA Environment Impact Assessment

ERT Endangered Rare or Threatened species

EU European Union

FFB Fresh Fruit Bunch

FSC Forest Stewardship Council

FSC COC Forest Stewardship Council Chain of Custody

FSC FM Forest Stewardship Council Forest Management

GGL Green Gold Label

GMP Good Manufacturing Practice

GOTS Global Organic Textile Standard

GTP Good Trading Practice

GPS Global Positioning System

HACCP Hazard Analysis and Critical Control Point

HCV High Conservation Value

HCVF High Conservation Value Forest

HGU Hak Guna Usaha

IPM Integrated Pest Management

JAS Japanese Agricultural Standard

MSDS Material Safety Data Sheet

NC Non Conformity

OE Organic Exchange

OER Oil Extraction Rate. (CPO as a % of the mass of FFB).

OSH Occupational Safety and Health

OSHAS Occupational Safety and Health Assessment Scheme

P&C Principle and Criteria

PEFC Programme for the Endorsement of Forest Certification

PET Polyethylene Terephthalate

PK Palm Kernel

POM Palm Oil Mill

POME Palm Oil Mill Effluent

PPE Personal Protective Equipment

RKL Rencana Pengelolaan Lingkungan

RPL Rencana Pemantauan Lingkungan

RSPO Roundtable on Sustainable Palm Oil

RSPO NI Roundtable on Sustainable Palm Oil National Interpretation

RTE Rare, Threatened, and Endangered

SA8000 Social Accountability 8000

SEIA Social Environmental Impact Assessment.

SIA Social Impact Assessment

SOCSO Social Security Organisation







Tel: +603-3377 1600 / 1700

SOP Standard Operating Procedure

UKL/UPL Upaya Pengelolaan lingkungan (UKL) / Upaya Pemantauan Lingkungan (UPL)

USDA/NOP United States Department of Agriculture – National Organic Program

MT Metric Tonnes

WHO World Health Organization

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