Making our world safer
RSPO CERTIFICATION ASSESSMENT PUBLIC SUMMARY REPORT Date of assessment 27 to 30.12.2010
PT. TUVNORD Indonesia System Certification Management Has assessed PT. AEK TARUM - SAMPOERNA AGRO Palm Oil Mill and Supply Base for Compliance to RSPO Principles and Criteria for Sustainable Palm Oil Production
CPO 20,937 t & PK 5,457 t
Belida POM and Supply Base
Revision 03 Report Prepared by Hasnop Putra
Public Summary Report PT. Aek Tarum – Sampoerna Agro (ATSA) Page 1
TABLE OF CONTENTS Summary
3
Abbreviations Used
3
1.
SCOPE OF THE CERTIFICATION ASSESSMENT 1.1 National Interpretation 1.2 Scope of Certification 1.3 Location 1.4 1. Description of Supply Base 2. Company Background and Ownership History 1.5 Dates of Planting and Replanting Cycle 1.6 Other Certifications Held 1.7 Time-Bound Plan for Other Certification Units 1.8 Areas of Estates 1.9 Approximate Tonnages Certified 1.10 Date Certification Issued and Scope of Certificate
4 4 4 5 5 6 6 7 8 8 9 9
2.
ASSESSMENT PROCESS 2.1 Certification Body 2.2 Assessment Methodology 2.3 Certification assessment checklist of principles and criteria 2.4 Review of documents 2.5 On-site and Follow-up interviews 2.6 Resolution of Corrective actions 2.7 Qualifications of lead assessor and assessment team 2.8 Outline of how stakeholders were interviewed 2.9 List of stakeholders 2.10 Questions posed in interviews with stakeholders 2.11 Date of next surveillance visit
9 9 10 11 11
ASSESSMENT FINDINGS 3.1 Summary of findings 3.2 Detailed Non-Conformity Report, Corrective Actions taken and Auditors’ Conclusions 3.3 1.Noteworthy positive components 2. Some Recommendations for Improvement to the Mill and Estates 3.4 1. Issues raised by stakeholders and findings of the assessment team 2. Attendance list for stakeholder meeting 3.5 Certified organization’s acknowledgement of internal responsibility 3.6 Formal sign-off of assessment findings
16 16 32
3.
ANNEXES A Maps of ATSA Mill and Estates B Draft RSPO Certificate C Certification Assessment Plan
11
12 12 14 14 15 16
35 35 36 37 38 38
39 42 44
Public Summary Report PT. Aek Tarum – Sampoerna Agro (ATSA) Page 2
Summary PT. TÜVNORD Indonesia (TNI) – Certification Body is a member of the worldwide German TÜV NORD group. TNI has performed a comprehensive certification assessment of PT. Aek Tarum Sampoerna Agro (ATSA) and concludes that its operations comply with the RSPO Principles and Criteria Indonesia National Interpretation (RSPO INA-NIWG) version May 2008. TNI therefore recommends that PT. Aek Tarum - Sampoerna Agro (ATSA) be approved as a producer of RSPO Certified Sustainable Palm Oil. This certification assessment is on Belida Mill producing a total 20,937 t/year CPO and 5,457 t/year PK*. (*January-December 2010) Abbreviations Used AMDAL
Analisis Mengenai Dampak Lingkungan (Environmental Impact Study Report)
ANDAL
Analisis Dampak Lingkungan (Environmental Impact Analysis Report)
ATSA
PT. Aek Tarum -Sampoerna Agro
Bapedalda
Badan Pengendalian Dampak Lingkungan Daerah (Regional Environmental Impact Control Agency )
B3
Bahan Berbahaya dan Beracun (Toxic and Hazardous Materials
BOD
Biological Oxygen Demand
BPN
Badan Pertanahan Nasional (National Land Agency)
CDM
Clean Development Mechanism (Mekanisme Pembangunan Bersih )
COD
Chemical Oxygen Demand
CPO
Crude Palm Oil
CSR
Corporate Social Responsibility
DAR
Deutscher Akkreditierungs Rat (German Accreditation Body)
Deperindag RI
Departemen Perindustrian dan Perdagangan (Department of Industry and Commerce of the Republic of Indonesia)
EFB
Empty Fruit Bunch(es)
FFA
Free Fatty Acid(s)
FFB
Fresh Fruit Bunch(es)
GPS
Global Positioning System
ha
Hectare(s)
HCV
High Conservation Value
HGU
Hak Guna Usaha (Land UseTitle)
HSE
Health Safety Environment (Kesehatan, Keselamatan dan Lingkungan)
IPM
Integrated Pest Management
JAMSOSTEK
Jaminan Sosial Tenaga Kerja (Labour Social Insurance)
K3
Keselamatan dan Kesehatan Kerja (Occupational Safety and Health)
KAN
Komite Akreditasi Nasional (The Indonesian Accreditation Committee)
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KLH
Kementrian Lingkungan Hidup (Ministry of Environment)
KUD
Koperasi Unit Desa (Village Cooperative)
LCC
Legume Cover Crop
LD50
Lethal Dosage (50% mortality of tested population)
LSM
Lembaga Swadaya Masyarakat (NGO(s))
MSDS
Material Safety Data Sheet(s)
OER
Oil Extraction Rate
P2K3
Panitia Pembina Keselamatan dan Kesehatan Kerja (Guiding Committee of Occupational Safety and Heath)
P3K
Pertolongan Pertama Pada Kecelakaan (First Aid Emergency)
Permenaker RI
Peraturan Menteri Tenaga Kerja (Regulation(s) of the Ministry of Labour of Republic of Indonesia)
PK
Palm Kernel
PKO
Palm Kernel Oil
PMA
Penanaman Modal Asing (Foreign Investment)
POME
Palm Oil Mill Effluent
PPE
Personal Protective Equipment
RKL-RPL
Rencana Kelola Lingkungan dan Rencana Pemantauan Lingkungan (Environmental Management Plan – Environmental Monitoring Plan)
SMK3
Sistim Manajemen – Keselamatan dan Kesehatan Kerja (Management System of Occupational Safety and Health)
SOP
Standard Operating Procedure(s)
SPSA
Serikat Pekerja Sampoerna Agro (Worker Union)
TNI
PT. TÜV NORD Indonesia
UKL/UPL
Upaya Kelola Lingkungan/Upaya Pemantauan Lingkungan (Environmental Management Efforts and Environmental Monitoring Efforts)
1. SCOPE OF THE CERTIFICATION ASSESSMENT 1.1 National Interpretation The standard requirements of the Indonesian National Interpretation of RSPO Principles and Criteria (RSPO INA-NIWG) version May 2008 were used to assess the operations of the Palm Oil Mill and the supply base of FFB for PT. AEK Tarum – Sampoerna Agro.
1.2 Scope of Certification The scope of certification is the production from 1 (one) mill supplied by 2 (two) company-owned estates. The mill also processes smallholder FFB, but they are not included in the claimed certification.
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1.3 Locations ATSA is offering 1 (one) mill and 2 (two) estates in Kabupaten Ogan Komering Ilir, Province of South Sumatra, Indonesia for certification. The locations of the mill and estates are shown in Figures A-1 and A-2 with their GPS coordinates (The readings for the estates are for their offices). Table 1: GPS Coordinates for Mill and Estates of ATSA (South Sumatra) (Estate coordinates are for their offices)
GPS coordinates Code BLDM
BLDE
MSJE
Unit
Location
Longitude (E)
Desa Sumber Baru C1, Kecamatan Mesuji, 104º 58' 09,82" Kabupaten Ogan Komering Ili, Province South Sumatera 105º 01' 27,4" Desa Sumber Baru C1, Kecamatan Mesuji, Belida Estate Kabupaten Ogan Komering Ilir, Province South Sumatera Belida Mill
Desa Surya Adi, Kecamatan Mesuji, Mesuji Estate Kabupaten Ogan Komering Ilir, Province South Sumatera
105º 01' 36,5"
Latitude (S) 03º 50' 13,93" 03º 49' 42,7"
04º 02' 59,7"
1.4.1. Description of Supply Base FFB for the mill are sourced from 2 (two) company-owned estates and smallholders. ATSA manages ± 5,391.75 ha of its own estates, and also receives FFB from its plasma smallholders through their cooperatives or sometimes from independent FFB suppliers. The plasma smallholders are, however, independent, not beholden in any way to sell their fruits only to ATSA. The total smallholder FFB received in 2010 (January – December) was 66,016 t (39.95% of the total processed by ATSA Palm Oil Mill). The respective volumes of FFB processed from the estates and smallholders are given in Table 2. Table 2: Sources of FFB processed by ATSA Palm Oil Mill (January – December 2010) Source of FFB
FFB (t)
Percentage (%)
Belida Estate
58,678
35.51%
Mesuji Estate
40,547
24.54%
99,225 66,016 165,241
60.05% 39.95% 100.00%
Total ATSAG-Owned Estates Smallholders Total FFB
The plasma smallholder scheme was developed as a condition for ATSA’s project approval and as part of ATSA’s commitment to help the local community develop by advising them on how to plant oil palm. The smallholder scheme is a part of the government’s transmigration project (PIR Trans project since 1989). ATSA is committed to fully support its plasma smallholders develop their plots in a sustainable manner in compliance with the RSPO Principles and Criteria. However, their production is not within the scope of this current RSPO certification, there is time-bound plan for smallholders certification as given in Table 3. ATSA has no plan for new planting. Therefore, Principle 7 of the RSPO National Interpretation of the Republic of Indonesia (RSPO INA-NIWG) does not apply.
Public Summary Report PT. Aek Tarum – Sampoerna Agro (ATSA) Page 5
1.4.2. Company Background and Ownership History PT. Aek Tarum is a subsidiary of the Sampoerna Agro Group. The Group manages oil palm and rubber plantation, and seeds garden to produce oil palm planting materials (germinated seeds). The products are Crude Palm Oil (CPO), Palm Kernel (PK), germinated seeds, and slab rubber. First field planting within the Sampoerna Agro Group was done by PT Aek Tarum back in 1989 followed by the establishment of PT Sampoerna Agro Tbk (previously named as PT Selapan Jaya) in 1993 to operate oil palm plantations in South Sumatra region. The Sampoerna Agro Group has a total of five Palm Oil Mills (POMs), of which four are situated in Sumatra and one in Kalimantan. The POMs in Sumatra have a total capacity to produce 320 tonness of fresh fruit bunches ("FFB") per hour, whereas the POM in Kalimantan has a capacity to produce 75 tonnes of FFB per hour. There is one more POM having an additional capacity of 60 tonnes of FFB per hour located in Sumatra that is scheduled to start operations in the first half of 2010. The others companies are PT Telaga Hikmah, PT Mutiara Bunda Jaya, PT Binasawit Makmur and PT Gunung Tua Abadi. While Kalimantan is operated by PT Sungai Rangit. One of the Sampoerna Agro Group's subsidiaries, PT Binasawit Makmur (BSM) was established to do the research and development of new varieties of oil palm seeds. It produces and sells six varieties of high quality oil palm seeds that are licensed by the Indonesian Ministry of Agriculture. Currently, the Group is one of the leading producers of palm oil and palm kernel in Indonesia. The Company is also one of the few oil palm seed producers in Indonesia that receive license from the Minister of Agriculture of the Republic of Indonesia to produce and sell oil palm seeds to third parties. As of 31 December 2009, both nucleus and plasma estates under the Sampoerna Agro Group guidance in Sumatra region covers an area of about 57,547 hectares of matured palms and 17,196 hectares of immatured palms. Whereas its Kalimantan estates including the ones under partnership (kemitraan) scheme, consists of approximately 12,604 hectares of matured palms, and 7,320 hectares of immatured palms. In other words, the Sampoerna Agro Group manages nucleus estates totalling about 50,768 hectares while plasma and kemitraan estates about 43,898 hectares. The Company holds approximately 112,481 hectares of Landrights and 109,363 hectares of location permits for land cultivation. PT. Aek Tarum (ATSA) as an integral part of the Sampoerna Strategic Group, the Company has a vision to become one of the Indonesian leading agribusiness companies that is accountable with its rapid growth strategy. It is in Kabupaten Ogan Komering Ilir, Province of South Sumatra, Indonesia. Establishment of the estates started in 1989 by the enabling decrees, Keputusan Badan Koordinasi Penanaman Modal No 695/III/PMDN/1989 and SIUP No. 089/KPTS/SIUP-PB/2003, which allowed ATSA its land to plant on. The total area managed by ATSA is 12,061.35 ha - 5,391.75 ha as nucleus estates run by ATSA itself, and 6,669.6 ha plasma estates (operated by smallholders but supervised by ATSA). The first harvest was in 1993, and the first processing by Belida Mill in 1995 which has a 60 t/hour FFB capacity. ATSA is considered one of the besst successful nucleus estates in the guiding its plasmasmallholders. All the plasma plots are now owned by the smallholders with the development loan taken by the company on their behalf having been fully repaid. The smallholders have established various KUDs (cooperatives) to sell their FFB to ATSA.
1.5 Dates of Planting and Replanting Cycle In general, oil palm is replanted after 25 years, but possibly shorter / longer depending on the economics and status of the crop. About 85% (1,993 ha) of total area in Mesuji estate is planted in 1989, the age of the palms now is 22 years, the older of the age of the palms the fruit will be bigger but the yield will be lower. Belida estate was planted from 1990 – 2005, and the earliest replanting would therefore be in 2015. Mesuji estate was planted a year earlier (1989) to 2002, and the first replanting would only be in 2014. The detailed data are given in a table below:
Public Summary Report PT. Aek Tarum – Sampoerna Agro (ATSA) Page 6
Table 3: Age profile of palms Estates
Area (ha) 1,933.4 101.5 47.9 66.5 51.5 15.1 3.0 41.0 710.3 1,641.2 108 139.6 23.4 10.6
Mesuji Estate
Belida Estate
Year Planted 1989 1991 1992 1995 1996 1997 2001 2002 1990 1991 1992 1993 2002 2005
Expected year for replanting 2014 2016 2017 2020 2021 2022 2026 2028 2015 2016 2017 2018 2027 2029
1.6 Other Certifications Held ATSA has been certified to:
ISO 14001 and ISO 9001 for its integrated management system, since 2005;
SMK3, based on Permenaker No. 5 Tahun 2005 by the Ministry of Labor of the Republic of Indonesia;
Piagam Penghargaan Penataan Terhadap Peraturan Perundang-Undangan di Bidang LingkunganHidup, or Organization Accomplishment of Environmental Regulation, by the Governor of South Sumatera Province in 2002 and 2007;
Piagam Penghargaan Perusahaan Pembina Tenaga Kerja Perempuan Terbaik III, or Women Workers Guiding Company, by the Government of Kabupaten Ogan Komering Ilir in 2006;
Sertifikat Perkebunan Besar, or Big Estate Certification, by the Governor of South Sumatra Province in 2007; and
Tax Award “Wajib Pajak Utama” in 2007.
Organizational Information/Contact Person All information in respect of this certification assessment for RSPO should be addressed to: Contact Person Position Organization name Address Postal code, city Country Telephone Fax Email
: Mr. H. Indra Pangasian : QES Senior Manager : PT. Aek Tarum – Sampoerna Agro (PT. ATSA) : Jl. Basuki Rahmat No. 788 : 30127, Palembang : Indonesia : +62711-813388 :+62711-811585 :
[email protected]
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1.7 Time-Bound Plan for Other Certification Units ATSA is fully committed to support its plasma smallholders become sustainable within the Indonesian National Interpretation of the RSPO P & C as part of its social responsibility to community development as this will improve their livelihood. It expects to be able to do this after three years’ training, i.e., starting in 2012. ATSA has communicated and socialized the importance of RSPO certification to all its smallholders and its intention to get them certified. TNI visited some of the smallholders to interview them during this RSPO assessment and to comprehensively check the conditions of some of the holdings. The audit team concluded that the fields checked met the standard requirements of the Indonesian National Interpretation of RSPO Principles and Criteria and RSPO Certification requirements although their production is not claimed in this certification exercise. The assessment was to ascertain that the time-bound plan for bringing the smallholders to certification in three years is realistic and sufficiently challenging. The certification time-bound plan for ATSA smallholders and all subsidiaries under Sampoerna Agro Group are given in Table 4. Table 4. Timebound Plan for Other Certification Units under Sampoerna Agro Group Company
PT. Aek Tarum PT. Mutiara Bunda Jaya
PT. Gunung Tua Abadi
PT. Bina Sawit Makmur PT. Sampoerna Agro
PT. Telaga Hikmah
PT. Sungai Rangit
Mill/ Estate Unit
Mesuji Smallholder Belida Smallholder Permata Bunda POM Permata Bunda Satu Estate Permata Bunda Dua Estate Permata Bunda Smallholder Harapan Dua Smallholder Sumber Sawit POM Sumber Sawit Estate Balian Sawit Estate Surya Adi Estate Selapan Jaya POM Gading Jaya Estate Limau Mungkur Smallholder Limau Manis Smallholder Limau Sundai Smallholder Sungai Indah Samllholder Sungai Pangeran Smallholder Gading Jaya Smallholder Telaga Hikmah POM Hikmah 1 Estate Hikmah 2 Estate Hikmah 3 Estate Hikmah 4 Estate Hikmah 5 Estate Hikmah 6 Estate KKPA Smallholder Sungai Rangit POM Baboti Estate Rauk Naga Estate Ranggam Estate Sungai Sagu Estate Waringin Estate Sukamara Estate Telaga Bintang Estate Prestasi Estate Sungai Rangit Smallholder
Proposed Year for certification
2012 2012 2013 2013 2013 2013 2013 2012 2012 2012 2013 2014 2014 2014 2014 2014 2014 2014 2014 2016 2016 2016 2016 2016 2016 2016 2016 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015
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1.8 Areas of Estates Two (2) estates are included in this certification assessment. Their area statistics are given in Table 5. Table 5: Area statistics of Belida and Mesuji Estates for this certification assessment (as at December 2010)
Total (Ha)
Estate Belida Mesuji Total
2,951.95 2,439.80 5,391.75
Area Summary Planted With Oil Palm (ha) 2,684.65 2,259.40 4,944.05
Mature (ha)
Immature (ha)
2,684.65 2,259.40 4,944.05
-
-
1.9 Approximate Tonnages Certified All FFB produced from the company’s 2 (two) estates are processed by Belida mill. The production from smallholders FFB is not included within the scope of this assessment (See para 1.4). The volumes claimed for certification by Belida mill are shown in Table 6: Table 6: Palm oil / palm kernel volumes claimed for certification Annual Production from company estates (t) Mill
Belida
Estates Belida Mesuji TOTAL
CPO
PKO
PK
12,381 8,556
-
3,227 2,230
20,937
5,457
The volumes are the actual production from January to December 2010. 1.10 Date Certification Issued and Scope Certificate The scope of the certificate to be issued covers the production from 1 (one) palm oil mill and 2 (two) estates. The date of issuance of the certificate will depend on approval of this Assessment Report by the RSPO Secretariat. A draft certificate is shown in Annex B. 2. ASSESSMENT PROCESS 2.1 Certification Body PT. TÜV NORD Indonesia is a subsidiary of the German TÜV NORD Group. Our company is a market leader in Indonesia for inspection, testing and certification services. Through more than 600 clients, we offer not just a high added-value service but also the trust and confidence embedded in our issued certificates / reports. We satisfy not only our direct customers but also other stakeholders, like regulators and interested society, including NGOs, through our competent auditors, inspectors and analysts. PT. TÜV NORD Indonesia, through its HQ in Germany, is a member of International Accreditation Forum (IAF) and accredited by DAR–German and locally by the Indonesian Accreditation Committee (KAN). Services provided by the Strategic Business Unit Systems Certifications are: Food Safety Management System ISO 22000, Information Security Management System ISO 27001, Social Accountability SA 8000, Food Hygiene HACCP, Medical Device Directive MDD, ISO 13485, Occupational Health and Safety OHSAS 18001, Product Certification: GS-Mark, CE-Mark, SNI Mark, Inspection for ISPS Code, Clean Development Mechanism (CDM) Validation & Verification, British Retail Consortium, BRC Issue 5.
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The offices of PT. TÜV NORD Indonesia are at: Head office System Certification Management Perkantoran Hijau Arkadia Tower F, 7th Floor Suite 706 Jl. Let. Jend. TB Simatupang Kav. 88 Jakarta 12520 – Indonesia Tel : +6221 7883 7338 Fax : +6221 7883 7336
Branch office Graha Pangeran 7-H1 Floor Jl. Jend. A Yani 286 Surabaya 60234 – Indonesia Tel : +6231 8292602 Fax : +6231 8292723 Laboratory Division Jl. Jababeka XVII E Blok U No. 27B Kawasan Industri Jababeka I Cikarang Bekasi 17530 – Indonesia
President Director: Mr. Robert Napitupulu Email:
[email protected] Website : www.tuev-nord.de 2.2 Assessment Methodology The certification assessment of PT. Aek Tarum -Sampoerna Agro was carried out from December 27 to 30, 2010. The assessment comprised four phases:
A desk audit (document check) with a customised RSPO audit checklist according to the RSPO manual, procedures and palm oil mill and estate working instructions;
Review results of consultation with stakeholders prior to certification assessment. The detailed method is given in Point 2.8;
Background investigations (published disputes, public comments on preliminary announcement), followed by interviews with RSPO management, employees and other stakeholders (associated people, NGOs, land regulators, social watchers, labour union); and
Verification of proposed corrective actions followed by review of the assessment report by internal veto persons (directors of PT. TÜV NORD Indonesia).
The summary public report of this certification assessment includes Corrective Action Requests, Corrective Actions Taken, Verification of Corrective Actions Taken and Progress in Implementation of Corrective Actions to be checked in the Surveillance Audit. The Non Conformities are broadly due to:
Major Non Conformities:
-
mistakes in interpretation of RSPO P&C by ATSA directly affecting the certification assessment;
-
requirements of some RSPO P & C not met or, in other words, non-compliance to the P&C on a major indicator(s);
These raise doubt on the capability of ATSA to achieve the desired results.
Minor Non Conformities: Where information is insufficient, unclear or insufficiently transparent to establish whether a requirement is met, or non-compliance to the requirements of the RSPO P & C on a minor indicator(s);
Potential for Improvement Conditions and factors in ATSA that will allow it to better satisfy the requirements of the relevant standards;
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Strengths, weaknesses, opportunities and threats of ATSA
The final certification assessment was made after issuance of the Corrective Actions Taken statement by ATSA. The auditors have assessed the corrective actions taken and are satisfied that the results comply with the required standards. Based on the compliance effected, this certification assessment report is forwarded to RSPO for its consideration for approval. 2.3 Certification Assessment Checklist of Principles and Criteria To systematically consider all the relevant RSPO P & C in the assessment, a checklist was used. The checklist has all the P & C against which the means employed by the management to satisfy them are noted. It serves the following purposes: -
Organizes, details and clarifies the criteria that the management is expected to meet;
-
Ensures transparency in the certification process - whether the criteria have been satisfied by the management.
The checklist was drawn up against the Indonesian National Interpretation of the RSPO P & C. 2.4 Review of documents The ATSA documentation was submitted in October 2010 and its adequacy / completeness reviewed against the certification assessment checklist. 2.5 Onsite and Follow-up interviews The audit team collected all the information on ATSA management for evidence of conformity to the RSPO P & C on a random sampling basis. Interviews with the respective staff, workers and some stakeholders in charge were carried out to ascertain the manner and circumstances in which the ATSA management system is implemented within the organization. The certification assessment was carried out from 27 to 30 December 2010. TÜV NORD Indonesia conducted on-site interviews with ATSA management, and palm oil mill / estate personnel to verify some information and resolve issues arising from reviews of the documents and ATSA management. The key points with respect to and concerned with the main topics of the interviews are summarised below: Interviewed Persons & Interview topics for Manager, Staff, Workers −
General aspects of the certification and the certification boundary;
−
Chemical stores, Water management, Details on reduction of paraquat use;
−
Approval documentation and status, Legal aspects related to ATSA management;
−
Management Policy and Quality, SM-K3 and Environmental Management System;
−
Involved personnel and their responsibilities;
−
Justification of RSPO P & C;
−
Monitoring and measurement of environmental performance for waste water treatment;
−
Identification of environmental aspects and impacts;
−
Flora, fauna, ecology and biodiversity;
Public Summary Report PT. Aek Tarum – Sampoerna Agro (ATSA) Page 11
−
Land and conversion planting, Replanting inspection and handling of chemical packaging wastes, Zero burning;
−
Socio economic impacts on local population, Sanitary and hygiene of employees’ housing complexes;
−
Licenses, operation & maintenance authority and responsibility;
−
IPM (Integrated Pest Management);
−
HCV identification;
−
Mill operation, including Inspection of FFB received, Transport of FFB, Road maintenance and Workshops for heavy trucks, loaders, etc.
Interviewed Persons & Interview topics for Stakeholders including NGO’s −
Environmental protection within the estates and mill including use of pesticides, wastes and effluent management, Company approach to community development;
−
Provision of housing, sanitation, amenities and educational support;
−
Biodiversity conservation within the estate(s) and surroundings (where possibly impacted by the estate / mill operations), Opportunities for earning fair wages, overtime and piece-rate work.
2.6 Resolution of Non-Compliances For remedying any non-compliances, the required corrective actions were discussed. ATSA was required to close out the outstanding major issue(s) by responding to the Non Conformity Report by describing, with evidence, the corrective action(s) taken. In this certification assessment, the auditing team raised 4 non-conformities and noted some improvements to be made. The non conformities and suggested improvements are all documented in this report. 2.7 Qualifications of the lead assessor and assessment team Lead Assessor
: Hasnop Putra
RSPO Requirements: A minimum of post high school (post secondary school) training in, and either agriculture/forestry, environmental science or social science. −
Mr. Hasnop Putra has a S1 (Ir, Engineer) degree in Mechanical Engineering from the University of Jayabaya in 1997 and A. Md (Ahli Madya) degree in Mechanical Engineering from the Polytechnic University of Indonesia in 1991. He also attended a CDM training course in Essen, Germany (June 2008); Environmental Rules & Regulations and Implementation by BAPEDAL in April 2000; Practical Course on Environmental Management System, Environmental aspect and impact assessment, documentation establishment and internal audit by Japan Audit and Certification (JACO) in December 1998; Environmental Management Law and Environmental Policy by EX-CORPORATION - BAPEDAL in December 1997; Big Challenge Biodiversity Course for Certification Body in June 2009 sponsored by RSPO, IFC, RESCUE, Wild Asia; Green House Gas (Global Warming) Training - CDM & VCS project for validation and verification at TÜVNORD Group, Essen, Germany in 2008.
RSPO Requirements: At least 5 years’ experience in area of work relevant with the audit (e.g., oil palm management; agriculture, ecology; social science). −
Well versed in management system certification as Project Engineer, Assistant Manager SBU 1.6 to PT. TÜV International Indonesia (TÜV Rheinland Group) from February 2001 to May 2004; PT. TÜV SUD PSB Certification (formerly PT. PSB Certification) from May 2004 to
Public Summary Report PT. Aek Tarum – Sampoerna Agro (ATSA) Page 12
November 2004; and PT. TÜV NORD Indonesia (TÜV NORD Group) from November 2004 to the present as the System Certification Manager; −
Qualified in auditing since 2001 in all sectors and state-owned and private oil palm estates and palm oil mill as follows: State-Owned Enterprises (Aek Tarum -Sampoerna Agro, V, VI, XIII), Private Company (PT. London Sumatra, PT. Sahabat Mewah dan Makmur, PT. Sampoerna Agro, PT. Multi Nabati Asahan, Wilmar Group, etc.;
−
Audited for SA 8000 standard in textile and garment industries, shoe and toy manufacturing;
−
Involved in Greenhouse Gases emissions for CDM and VCD projects - validation of some companies in Indonesia;
−
Team leader for RSPO certification assessment for PT. London Sumatra Indonesia Tbk.
RSPO Requirements: Trained in practical application of the RSPO criteria, and RSPO Certification System. −
Trained Lead Assessor / Internal Assessor in Sustainable Palm Oil by Indonesia Palm Oil Board and KAN (National Accreditation Committee) in March 2008 to April 2008;
−
Completed ISO 9000/19011 lead auditor course;
−
PE International - ISO 9000:2000 Series Auditor/ Lead Auditor Training Course - Certificate Number LA 072 in June 2001;
−
PE International - ISO 14001:2004 IEMA Advanced EMS Auditor Training Course - Certificate No. IQR/EMS4/00102, England and Wales in March 2001;
Underwent supervised training in practical auditing against the RSPO Criteria or similar sustainability standard, with a minimum 15 days’ audit experience in sustainable management system certification in the oil palm and palm oil industry with over 30 days’ auditing of a StateOwned Enterprise (Perkebunan Nusantara IV), Sampoerna Agro Palm Oil Mill and Estates, and London Sumatra Indonesia Palm Oil Mill and Estate. Assessor
: Wieke Savitri
Graduated from Agriculture Faculty in Bogor Agricultural University in 1994. Then, consultant at Perkumpulan Untuk Peningkatan Usaha Kecil, a foundation to promote small scale enterprises by offering training and consultation in business management, human resources, marketing and IT. Before joining TUV NORD Indonesia, she spent 7 years working for Danone–Aqua, a beverage company, in which she held various positions, such as Quality Control Manager at Pandaan factory in East Java before her last position as Quality Assurance Manager at Klaten factory in Central Java. Her passion for environmental and social issues had led her to join Aqua Foundation even while working in Danone-Aqua - to develop community development programs for people living around her factory. She also attended a Workshop for Community-based Environmental Educators by the United Nations of Environmental Program in Bangkok. Finally,joined PT. TUV NORD Indonesia in September 2006 as QMS auditor, and appointed Surabaya Branch Manager in May 2008. She is an experienced auditor in palm oil manufacturing and oil palm estates. Attended DOEN RSPO auditors training in 2008. Technical Expert
: Dr. Hariyadi
He holds a doctorate (S3) in Agriculture Environment from Bogor Agricultural University (IPB), and has a strong background and experience in the socio-environment aspects of agriculture as a lecturer in Agriculture and Socio-environment. Assisted in socio-environmental impact assessments and did research in Green Giant NPK fertilizer effects on immature oil palm growth. Has extensive experience in research in plant water and nutrient requirements, irrigation and fertilizer application,
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seedling selection and Integrated Pest Management. Qualified in biodiversity assessment and biodiversity science. Underwent auditor training in oil palm estates and palm oil mill in EMS and RSPO P & C. Completed training in EMS course for ISO 14001:2004 and has experience in oil palm estate waste management, disposal of EFB and fertilizer packaging and environmental impact on employees’ housing complexes. Member of the team in RSPO certification assessment of PT. London Sumatra IndonesiaTbk in 2008. 2.8 Outline of how stakeholders were interviewed Stakeholder consultations began with notification of the upcoming assessment in the websites of RSPO and ATSA. Telephone calls, e-mails, facsimiles or letters were sent to the applicable stakeholders. ATSA has held regular meetings with its stakeholders in accordance with its external communication procedure (Prosedur Komunikasi, Partisipasi dan Konsultasi (P-SAG-RO-QES-07)). Before the assessment proper, the audit team trawled the proceedings of all the meetings to update itself on the current situation and issues involved. The stakeholders were then invited to discuss critical issues in community development, including the latest progress plans for community development and the targets to be achieved. Some of the items on the agenda for the stakeholders’ meeting were the maintenance of infrastructure - roads, irrigation and drainage network, bridges and schools. In addition, to provide financial support, scholarships, welfare, sanitation and improved hygiene for the people living near the employees’ housing complexes, palm oil mill and supply bases. The discussion with stakeholders was well organized. The audit team then visited some of them for interviews for both positive / negative information on any issue in connection with the operations of the ATSA palm oil mill and supply bases. 2.9 List of Stakeholders The table 6 below lists the stakeholders involved: Table 6. List of Stakeholders Statutory Body
Badan Lingkungan Hidup Sumsel
Depnaker Sumsel
Dinas Perkebunan Sumsel
Indigenous people
Contact Person (if applicable and address) Bpk. Moch. Andi (Kepala Sub Bidang Penataan Lingkungan) Jl. Aerobik No. 4 Kampus POM IX Palembang Ibu Intan (Bidang Hubungan Industrial dan Syarat Kerja) Jl. Ade Irma Suryani Nasution No. 1254 Palembang, 30129 Ibu Hj. Sri Murhartani (Kasubdin Industri Primer Perkebunan) Jl. Jend. Sudirman Km 3,5 No. 563 Palembang Contact Name (if applicable and address)
Phone
E-mail
0711-355360 0818465152
0711-354013, 354657, 357293 0711-351451
Phone
E mail
Phone
E mail
N/A Local Community Desa Sumber Baru (C1) Desa Mulya Jaya (C2) Desa Mekar Wangi (C4) Desa Sumber Sari (SKPD) Desa Mataram Jaya (SP2)
Contact Name (if applicable and address) Suradi (Kepala Desa) Dedi Kusnadi (Kepala Desa) Poniman (Kepala Desa) Markaban (Kepala Desa) Purwadi (Kepala Desa)
081373797696 081379606185 081632253991 081632350076 081367444289
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Workers’ Organization Serikat Pekerja Sampoerna Agro LKS Bipartit (Lembaga Kerjasama Bipartit) Smallholder Cooperative KUD Bina Sejahtera
KUD Bina Tania Mulia
Independent supplier of materials and services PT Serumpun Indah Lestari (Suplier Material PKS) PT Pupuk Hi Kay (Suplier Pupuk) CV Musim Sawit (Supplier Material Bangunan) Bengkel Laksmi (Service Kendaraan) Local NGO LSM Peduli Lingkungan
National NGO Lembaga Bantuan Hukum Palembang
Yayasan Lembaga Konsumen Palembang (YLKP)
Contact Name Phone (if applicable and address) Bpk. I Wayan Gede Siria (Karyawan 085273537326 di PKS Belida)
pks_belida@sam poernaagro.com
Bpk. Uli Yuliana (Karyawan di PKS Belida)
pks_belida@sam poernaagro.com
Contact Name (if applicable and address) Bpk. H. Marnu Spd. (Ketua KUD) Desa Kertamukti Kec. Mesuji Raya, Kab. OKI, Prov. Sumatera Selatan Bpk. Udin Budiharto (Ketua KUD) Desa Maribaya, Kec. Mesuji, Kab. OKI, Prov. Sumatera Selatan Contact Name (if applicable and address) Ibu Noni Jl. Pulau Solar Kawasan Industri Medan II, Medan 20252 Bpk. Lim Pei Yee Jl. Tanah Abang III No 14 Jkt, 10160 Bpk. Yanto Jl. Raya Palembang Sekayu KM 18 Palembang Bpk. Artaman Jl. Mayor Yen, Depan PUSRI Contact Name (if applicable and address) Nurdin (Ketua LSM) Alamat : Desa Surya Adi Kecamatan Mesuji Raya, Kabupaten Oki, Sumsel Contact Name (if applicable and address) Bpk. Yopie Bharata Jl. Bidar Blok B no 6
Bpk. Husni Thamrin Jl. Ki. Gede Ingsuro No. 183, 28 Ilir Palembang 30142 Indonesia
081368369632
E mail
Phone
E mail
081367554841
081532681236 081367327531 Phone
E mail
061-6871221 Fax:061-6871429 021-3502238
Telp : 0711430571 Telp : 0711718413 Phone
E mail
081271262139
Phone
E mail
Telp. 62-0711512262 Fax. 620711-356153 Hp.08127813755 Telp/Fax. 620711-356132
Email:lbhplg@yah oo.com
2.10 Questions posed in interviews with stakeholders
Did ATSA provide information on the RSPO certification exercise including plans for safety and health to the public and stakeholders?
Does ATSA hold regular meetings on community development?
Does ATSA respond well to complaints in respect of RSPO P & C implementation?
Is there a clear grievance and complaints procedure in the company?
Are there any complaints on land acquired by ATSA for planting oil palm?
Is there any environment impact caused by the operations of ATSA?
Is there a procedure for settlement of conflicts communicated to the local community?
Does ATSA meet with stakeholders regularly to discuss issues on community development?
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Are the workers paid in accordance with government regulations?
Is there a system to disseminate information quickly in emergencies to the local communities around the palm oil mill and supply bases?
All the responses / comments, whether positive or negative, were recorded by the audit team by hand. It then verified the information by the standard operating procedure. . 2.11 Date of next surveillance visit The next surveillance audit has to be within 12 months from the date of RSPO approval of the Initial Certification. The surveillance audit has to be conducted yearly for a 5-year period.
3. ASSESSMENT FINDING 3.1 Summary of findings Objective evidence was obtained separately for each of the indicators for the mill / estates in the certification assessment. The information was comprehensively asked from the 1 (one) mill and 2 (two) estates, and smallholders / KUDs (cooperative bodies). The results for each indicator from the different operational areas were aggregated to assess the overall conformance of the Company's operations to it. A finding is made for each indicator. Nonconformities were raised against one (1) Major and three (3) Minor Indicators, with some opportunities for improvement noted. Where a nonconformity / observation is assigned, reference is made at the end of the text of the Indicator to which it refers. ATSA has prepared a Corrective Active Plan which date for implementation has been accepted by PT. TUVNORD Indonesia. The effectiveness of the corrective actions for the minor nonconformities will be checked on the next surveillance but the major non-compliance has to be closed within 60 days. The following is a summary of the findings for compliance with the RSPO Principles & Criteria. Criterion 1.1 Oil palm growers and millers provide adequate information to other stakeholders on environmental, social and legal issues relevant to RSPO Criteria, in appropriate languages and forms to allow for effective participation in decision making. ATSA has a procedure for communicating with stakeholders (Prosedur Komunikasi, Partisipasi dan Konsultasi (P-SAG-RO-QES-07), or Communication, Participation and Consultation) and a mechanism to resolve conflicts (Prosedur Mekanisme Penanganan Konflik (P-SAG-RO-CAS-03), or Mechanism to Resolve Conflict dated 1 September 2010). All the heads in the mill / estates are required to provide adequate information as required by the RSPO criteria. The requests for information are recorded in the Stakeholders Aspiration, copied to Corporate Affairs Services (CAS) Department in Head Office (1.1.1). The response(s) are prepared by the heads of mill / estates or by the CAS Department depending on their importance (1.1.2). The records of requests / responses will be kept for 5 (five) years (1.1.3). Compliance Status : Full. 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 management documents on legal, environmental, health safety and social issues are the responsibility of CAS Department in Head Office. The legal documents, include Izin Lokasi (Site Permit), Izin Usaha Perkebunan (Plantation Operation Permit), HGU (Land Use Title) and the environmental documents for ANDAL (Environmental Impact Analysis) approved by Badan Lingkungan Hidup Daerah (BAPEDALDA) Tingkat II (Regional Environmental Body Kabupaten Ogan Komering Ilir (OKI)). Various environmental parameters are measured and reported sixmonthly in Laporan Pelaksanaan Rencana Pengelolaan Lingkungan Hidup dan Rencana Pemantauan Lingkungan Hidup (RKL & RPL). Since ATSA is a labour-intensive company, it is required to comply with the mandatory SMK3 (Occupational Health and Safety Management System). Progress on the Health and Safety Program (K3 program) is reported regularly to the Ministry of Labour of Republic of Indonesia (1.2.1). All the records are properly kept in the CAS Department in Head Office or General Affairs Department in each unit for the proper periods, e.g., safety, health and environment reports for 5 years, social records 10 years and legal records indefinitely (1.2.2), and are available on request. Notwithstanding this, environmental and social data are presented during the yearly public consultation with stakeholders as part of its CSR program, e.g., Posyandu (integrated healthcare service post and health education to promote human hygiene), sanitation and nutrition intake for infants, pregnant and breast-feeding women, fogging to eradicate mosquitos, agricultural skills training for the locals (estate workers and smallholders), skills training for school teachers, scholarships available, renovation aid for schools, roads, bridges, tree planting, waste treatment for land application such as EFB for plasma estates. The HCV areas are also informed to stakeholders to ask their cooperation in protecting them (HCV areas). Compliance Status : Full.
Criterion 2.1 There is compliance with all applicable local, national and ratified international laws and regulations ATSA keeps copies of all the legislations / regulations applicable to it from the applicable regulation list in P-SAG-RO-QES-08: Hukum dan Persyaratan Lainnya/ Rev.0 dated 1 September 2009 and in P-SAG-RO-QES-12 : Pemantauan dan Pengukuran Lingkungan & K3, Evaluasi Ketaatan Hukum/ Rev/0 dated 1 September 2009. The QES Department in Head Office keeps track of its (ATSA’s) legal requirements, including validating / renewing licenses and permits, and makes sure that they are complied with. ATSA has ISO 14001 certification for its environmental management and also SM-K3 for Health Safety Environment. The General Affairs Assistant Manager is responsible for keeping the mill / estates operating within the national laws / regulations, and is required to keep up to date with any changes in the laws / regulations. The responsible personnel – engineers, boiler men, electricians, chargemen have the necessary qualifications (by the Ministry of Labor of Republic of Indonesia as required by SMK3), and the equipment – boilers and diesel generators - the necessary certifications / approval (by Surveyor Indonesia, a state-owned inspection body, as required by SMK3). All the documents were checked and found to be in legal compliance. Compliance Status : Full. Criterion 2.2 The right to use the land can be demonstrated and is not legitimately contested by local communities with demonstrable rights
The boundaries of ATSA land were easily identified being demarcated by T-0 pillars, their identification numbers corresponding with points in the maps in HGU (Land Use Title) registered with BPN Kabupaten Ogan Komering Ilir (National Land Agency of Ogan Komering Ilir). The
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General Affairs Department and Legal Department in Head Office is responsible for resolving any conflict over land. Currently, there are no claims on ATSA land by anyone. The mill / estate managers have ensured proper registration of their HGU certificates in the acquired land register. In 2006, there were claims on about ± 97 ha in Blocks 8 and 9, but the disputes were resolved the same year with proper compensation paid witnessed by Village Chief Pematang Panggang (Mr. Abdillah Kadir). The records pertaining to the compensation were sighted and well maintained. Compliance Status : Full.
Criterion 2.3 Use of land for oil palm does not diminish the legal rights or customary rights of other users, without their free, prior and informed consent As far as could be ascertained, there is no customary right of other users. Compliance Status : Full. Criterion 3.1 There is an implemented management plan that aims to achieve long term economic and financial viability ATSA has 5 years’ projection (2011 – 2015) for its crop, including key performance data for its mill and estates as part of its long term economic planning. In its Rencana Bisnis Tahun 2011 – 2015, yield and mill performance are expected to improve, e.g., OER (Oil Extraction Rate) by the mill in 2015 to average 22.0% from 21.1 % in 2010. The replanting schedule is included, e.g., in 2013 will be 500 ha for the nucleus estates and in 2014 another 1,000 ha for the nucleus estates and 3,179.60 ha for its plasma estates; in 2015 will be 1,311.80 ha for the nucleus estates and 3,374.50 ha for the plasma estates. Currently, the mill is processing 55 t / hour FFB. ATSA has a target to reach its designed capacity of 60 t / hour. Compliance Status : Full.
Criterion 4.1 Operating Procedures are appropriately documented and consistently implemented and monitored ATSA has Standard Operating Procedures with the best practices for its mill and estate operations. The mill and estates have been certified to QMS ISO 9001, EMS ISO 14001 and HSE management SMK3 for their management systems by TUV NORD and the Ministry of Labour of Indonesia. Most of the Standard Operation Procedures are incorporated in the SM-K3 management system. The following procedures have been implemented for sustainable palm oil production: a. SOP for Oil Palm (nursery practices, land preparation, planting, upkeep, harvesting, waste management, HCV and management of hazardous wastes, e.g., agrochemical containers); b. SOP for Palm Oil Mill [fruit processing, boiler operations, power generation, water treatment, electrical systems, quality (including monitoring of CPO parameters), dispatch and laboratory inspection of incoming fresh fruit bunches]; and c. Manual for Health & Safety (SM-K3). There are also SOPs on safe working practices, both in the mill and estates, e.g., application of pesticides, use of PPE, emergency preparedness and response. Updated SOPs are sent to the Mill / Estate Managers whenever there are changes made, and then submitted to the Quality Environmental System in Head Office for approval. The obsolete
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procedures are withdrawn. Monitoring records from inspections are kept with proper identification. The performance of each mill / estate work station is monitored for each shift and recorded daily. There is also an integrated management system procedure for the plasma smallholders (P-SAGKBN-PLS-01), the procedure already socialized to KUD Bina Sawit Utama, KUD Citra Sawit Mandiri, KUD Jaya Bersama and KUD Mekar Sari. Compliance Status : Full.
Criterion 4.2 Practices maintain soil fertility at, or where possible improve soil fertility, to a level that ensures optimal and sustained yield ATSA fertilizes its palms annually to the recommendations of an independent laboratory (Asian Agri Research and Development) based on leaf and soil analysis data. Frond sampling is done in each blocks yearly for N, P, K, Ca, Mg, B and Cu. The soil analysis test is carried out every 5 years for N, P, K, Ca, Mg, B, Cu, Zn and Fe. The last soil analysis was done in 2005. As part of the agronomic practice to improve soil fertility and reduce waste, EFB is applied as mulching for oilpalms at Belida Estate. ATSA use new Empty Bunch Press machine that produce EFB in fiber form approximately 9% - 13% of total FFB processed. Total application of EFB in 2010 was 14.868,77 t for total area 464,80 ha, approximately 31,99 t/ha from the recommended dosage of 40 t/ha. The application of POME in ATSA is still under research and development as it has to fulfill the government requirements and permits. Compliance Status : Full.
Criterion 4.3 Practices minimise and control erosion and degradation of soils Generally, the topography of the two estates are gently rolling with slopes of 0 – 8% to 8-15%. From the ANDAL done (based on data in 2005) the average soil erosin loss is 10 t / ha / year, or equal with 0,84 mm/year, given the soil bulk density of 1.19 g/cm3. This is a low figure indicative of good erosion control. The soil erosion level was calculated according to USLE method (Universal Soil Loss Equation). According to USDA classification, the soil type is Ultisols, according to FAO/ UNESCO, it is classified as Acrisols. Regular road maintenance is carried out (grading, compacting and cambering) and also ditch maintenance according to Program Perbaikan Jalan. About 45 km were maintained in 2010 (See Figure 1). As there are no fragile soils (including peat) according to a HCV assessment, ATSA does not have any plan to manage them. Compliance Status : Full. Figure 1. Road maintenance in ATSA
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Criterion 4.4 Practices maintain the quality and availability of surface and ground water ATSA has established a standard for water requirement to process FFB. The daily water consumption is recorded in Form Monitoring Penggunaan Air, including water consumption by the mill and employee housing complex. Checks on the records of water consumption found that they complied with Izin Penggunaan Air Tanah (Ground water consumption permit by Province South Sumatra). To avoid the contamination of river water, ATSA does not apply fertilizer and pesticides to its oil palm in the riparian zones – a 50 meter belt along the river banks - and no replanting of oil palm will be done along all 13 km of river banks in Blocks 16, 17, 20, 24 and 25 (Figure 2). The riparian zones are clearly demarcated by sign boards, and there is a program to plant them with bamboos in 2011 for their rapid growth. Native species such as Bambusa balcooa (bambu balku), Bambusa vulgaris var. Striata (bambu ampel kuning), Bambusa vulgaris var.vitata (bambu ampel hijau) and Bambusa bambos (L.) Voss (bambu duri liar) will be used. Monitoring of BOD is done monthly by UPT Laboratorium Lingkungan-Badan Lingkungan Hidup Sumatra Selatan. The BOD levels and other parameters must comply with the local requirements in the Liquid Waste regulations in environmental decree by Province of South Sumatra No. 18/ 2005. The BOD data are submitted six-monthly in RKL/ RPL to BAPEDALDA (Regional Environmental Monitoring Body). The last report on 30.11.2010 showed the level as 89.1 mg/l, of maximum standard is 100 mg/l. Compliance Status : Full. Figure 2. No replanting of oil palm along river banks covered with Mucuna brachteata
Criterion 4.5
Criterion 4.5 Pests, diseases, weeds and invasive introduced species are effectively managed using appropriate Integrated Pest Management (IPM) techniques ATSA has formulated an Integrated Pest Management (IPM) Program with an Early Warning System (EWS) (Prosedur Monitoring Hama (P-SAG-KBN-PML-15) and Pengendalian Hama Daun (P-SAG-KBN-PML-16)). IPM is practiced incorporating cultural, biological, mechanical or physical methods to minimize the use of chemicals, e.g., planting beneficial plants (cultural method), such as Bunga pukul delapan (Turnera subulata) and air mata pengantin (Antigonom leptosus) to harbour predators of the crop pests. Eradication of outbreaks of leaf-eating bagworm (ulat api, especially Setora nitens) is by biological control using a virus taken from the insects themselves. The barn owl (Burung hantu, scientifically Tyto alba) is protected and encouraged as a natural predator of rats. Regular census is carried out on the pest situation by monitoring their occurrence on palm fronds, and the data recorded in Ringkasan Sensus Hama Daun (FM-SAG-KBN-PML-150201). Census of Tyto Alba is conducted monthly (4.5.1).
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The use of pesticides is recorded and displayed in the estate managers’ offices. Since uncontrolled use of pesticides can severely affect the health of the sprayers, and can even damage the crop, monitoring of the pesticide usage should have been done. However, this was not done, e.g., paraquat use records not updated. Accordingly, a noncompliance was issued. Commpliance Status : Not Compliant (See NCR T/01/12/2010. Criterion 4.6 Agrochemicals are used in a way that does not endanger health or the environment. There is no prophylactic use of pesticides, except in specific situations identified in national Best Practice guidelines. Where agrochemicals are used that are categorised by the World Health Organization as Types 1 A or 1 B, or are listed by the Stockholm or Rotterdam Conventions, growers are actively seeking to identify alternatives and this is documented. ATSA has a procedure on how to apply agrochemicals, e.g., glyphosate, paraquat, 2,4-D amine and methyl metsulfuron (Peraturan Menteri Pertanian No. 07/Permentan /SR.140/ /2007, or Regulation No. 07/ Permentan /SR.140/ 2/2007 Ministry of Agriculture Republic of Indonesia). All the agrochemicals used are registered and approved by Pusat Perizinan dan Investasi Sekertariat Jenderal Departemen Pertanian 2008, or Invesation and Permit Center, Agriculture Department, Republic of Indonesia (4.6.1). Checks on the records of agrochemicals used found that they complied with the regulation, and there was evidence of reduced usage, e.g., in Mesuji Estate on November 2010, the targeted use of Round-Up was 300 cc/ha but actual use only 210 cc/ha; 2,4-D amine, targeted use 250 cc/ha, actual use 50 cc/ha. As ATSA had implemented IPM, only severe infestations / attacks were treated with agrochemicals (4.6.2 and 4.6.5). Regular training for female chemical sprayers was conducted by field foremen, supervised by the estate assistant managers. The foremen and assistant managers had themselves been trained by the agrochemical supplier, PT.Nufarm (PT. DGW), on 2 - 3.11.2010 (4.6.3.). ATSA has a procedure to store agrochemical wastes and empty containers in a secured area – a B3 (hazardous and toxic materials) waste warehouse - before collection by a licensed contractor (Prosedur Pengendalian Limbah B3(P-SAG-KBN-LMB-01). Records of the hazardous wastes stored are kept in Laporan Berita Acara Pengembalian karung (FM-SAG-KBN-PML-040001 in compliance with the Material Safety Data Sheet (MSDS) in Government Regulation (PP) No. 74 of 2001 (4.6.4). There was evidence of regular medical check-ups for workers involved in handling hazardous chemicals; the last records showed that ATSA carried out the follow-up action recommended by the Regional Hospital in Ogan Komering Ilir for workers who needed further medical treatment (4.6.7.). ATSA has policy that pregnant and breast-feeding women are prohibited from working with pesticides, and there are records of socialization of the policy to the female workers dated 4.11.2010 (4.6.8). Compliance Status : Full.
Criterion 4.7 An occupational health and safety plan is documented, effectively communicated and implemented ATSA has established a safety, health and environment policy dated 1.10.2010, socialized to all its units: Belida Mill and Belida and Mesuji Estates, along with third party suppliers and contractors on 23.12.2010 (4.7.1). The team members of Panitia Pembina Keselamatan dan Kesehatan Kerja (P2K3), or Guiding Committee on Occupational Health and Safety, were approved by the Regional Head of Human Resources on 17.12.2010 in a memorandum, RH HRS No. 0522/HRS/XII/2010. Explanation and
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communication of the policy is the responsibility of the safety engineer (SM-P2K3) who daily monitors and inspects all facilities in the mill and estates for emergencies. There are regular monthly meetings between the management and workers on health and safety issues (4.7.2). All the employees and contract workers are insured under JAMSOSTEK with ATSA having JAMSOSTEK membership No. 98BG0007. A record of JAMSOSTEK payment installment on 15.10.2010 was sighted (4.7.3). All employees, especially those in high risk work, undergo an annual health examination with the results submitted in Laporan Hasil Pemeriksaan Kesehatan Berkala Tenaga Kerja to Dinas Tenaga Kerja – Balai Hiperkes Dan Keselamatan Kerja Provinsi Sumatera Selatan (Department of Labor, Province of South Sumatra). The latest report was on July 2010 (4.7.4). All the operations have been risk assessed for obtaining SMK3 certification. The P2K3 team identified and analysed the risks for all routine and non-routine activities in Belida mill, and Belida and Mesuji Estates. The records of risk analysis are documented in Identifikasi Aspek Lingkungan Dan Potensi Bahaya dan Resiko K3 (FM-SAG-RO-QES-090001) dated 30.9.2010. With the assessment were developed procedures for accidents and emergency preparadness (Prosedur kesiapan tanggap darurat (P-SAG-PKS-DRR-01)). The effectiveness of this procedure is tested every six months (4.7.5 and 4.7.7). Workers in hazardous areas are provided training to minimize their risk in an annual training program on safety and health issues (Program Pelatihan P2K3 2010-2011), including training for boiler operators, K3 regulations and legislations of the Republic of Indonesia, emergency drills, risk identification of elevation equipment (crane / gondola). A record of work accidents was compiled by the company physician on 29.7.2010 (4.7.6).
The P2K3 team has assured that all P2K3 and K3 equipment, such as fire extinguishers, PPE, hydrants, P3K tool kits (medical box) are available on worksites by regular checking in the mill and estates. The checklist on November 2010 was perused and found to comply (4.7.8). First aid training was conducted on 12.10.2010 (4.7.9.). Records of work accidents are kept 5 years and regularly reviewed in Logbook Kecelakaan Kerja and submitted to DISNAKER, the Regional Labor Department, and JAMSOSTEK for insurance claims. In a work accident, the P2K3 team will meet immediately to investigate the cause and recommend corrective and preventive action (4.10). Compliance Status : Full.
Criterion 4.8 All staff, workers, smallholders and contractors are appropriately trained Mill / estate managers have identified the training needs in each section / department to organize an annual training program. The training program in 2010 -2011 also covers contractors and smallholders (plasma smallholders). Training for plasma smallholders is conducted every three months, and includes guidance on FFB quality standard, harvesting, fertilizaton and estate maintenance. The training records for plasma smallholders are kept in Notulen Pembina Petani Plasma (FM-SAG-KBN-PLS-010005). The plasma smallholders of Mesuji Estate are in KUD SP 1A, SP 1B, SP 6 and SP 7, and of Belida Estate in KUD SP2, SP3, SP4 and SP5C. Compliance Status : Full. Criterion 5.1 Aspects of estate and mill management, including replanting, 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 ATSA conducted an environmental impact assessment (ANDAL) of its mill and estate operations in 2005 which has not been revised because there has been no change in its operations that could have differently affected the environmental and socio-economic issues. Any adverse impacts
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identified will be studied for mitigation. Assessment is also being carried out on the environmental management and monitoring (RKL/RPL). ATSA had previously assessed its environmental impact in obtaining ISO 14001 certification (for environmental management) for its mill and estates. Sixmonthly reports of RKL/RPL are submitted to BAPEDALDA (local environmental controlling body) Kabupaten Ogan Komering Ilir, the last report being Nomor Surat 082/AT/CAS/XI/2010, on 4 November 2010. A procedure has been drawn up to revise its environmental documentation with any change in the company activities. Several efforts to reduce the company’s environmental impacts have been made, e.g., planting a legume cover (Muccuna bracteata sp), planting oil palm in big holes with EFB as mulch / organic fertilizer. Compliance Status : Full.
Criterion 5.2 The status of rare, threatened or endangered species and high conservation value habitats, if any, that exist in the estate or that could be affected by estate or mill management, shall be identified and their conservation taken into account in management plans and operations. ATSA had a HCV assessment done in June 2010 by Quality and Environmental System (QES) Department, which was trained by Yayasan Kelapa Sawit Berkelanjutan Indonesia (YASBI) and the Forestry Faculty of Bogor Agricultural University. The findings are written up in its report: Laporan Identifikasi NKT/HCV ATSA 2010, with also contains recommendations for management of the HCV areas. After the report, a public consultation was held to verify the report and obtain feedback. The HCV areas / fields are now clearly demarcated for easy identification with No hunting, No fishing, etc. signs (See Figure 3). Figure 3 : HCV areas (HCV 4.1) clearly sign-posted
However, the identification of HCV areas in Laporan HCV/ NKT PT. Aek TarumSampoerna Agro, June 2010 is incomplete, there being no assessment of the flora and fauna (NKT) in the estates (Mesuji and Belida). A non-compliance was issued. Commpliance Status : Not Compliant (See NCR T/02/12/2010).
Criterion 5.3 Waste is reduced, recycled, re-used and disposed of in an environmentally and socially responsible manner ATSA has identified all waste and pollutions sources in the mill and estates and listed them in Metoda Identifikasi dan Evaluasi Aspek Lingkungan (FM-SAG-HO-QES-090001) in accordance with its related procedure, Prosedur Identifikasi Aspek Lingkungan (P-SAG-RO-QES-09). The records of actual wastes in the mill and estates are documented in Sumber dan Penanganan
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Limbah dari Operasional Pabrik dan Kebun (5.3.1). Suitable methods have been established to minimize the production of wastes and to minimize their environmental impacts. A procedure has been established to manage wastes from the mill / estates (Prosedur Penanganan B3 dan Limbah Pabrik/ Kebun (P-SAG-PKS/KBN-LMB-01/01). ATSA has, in fact, already implemented waste management and disposal to avoid / reduce pollution to obtain its ISO 14001 certification. EFB is used to mulch young palms in the field, liquid wastes treated as in Instalasi Pengolah Air Limbah /IPAL (waste water treatment) to reduce their BOD and COD, with their pH monitored to the requisite standards. Analyses of POME for BOD, COD and pH are done regularly to ensure the parameters meet the standards, the last report in Monthly Progress Report Nopember 2010 (Sections 5.3.2 and 5.3.4) showing compliance Used agrochemical containers are collected in a chemical store – a permanent area sheltered from rain. ATSA has a licence to store the wastes in accordance with decree Keputusan Kepala Badan Dampak Lingkungan (KEPDALl) No. 255/BAPEDAL/08/1996 before collection by a licensed waste collector. The records of waste and hazardous material disposal were checked, and the evidence of hazardous waste disposal found to be well documented, such as used grease waste collected by PT. Wiraswasta Gemilang Indonesia (WGI) recorded in hazardous waste manifest on 18.12.2010 to the quantity of 38 drums (5.3.3). However, it was found that used agrochemical packaging was not properly handled – it was not specified where the waste was sent to or whether the collecting company is properly licensed. Compliance Status : Not Compliant (See NCR T/03/12/2010).
Criterion 5.4 Efficiency of energy use and use of renewable energy is maximized ATSA has a renewable energy program in which it continually strives to improve energy efficiency and use more renewable vis-à-vis fossil fuels. The generator set is only used as backup to generate electricity when the main turbine is down. In 2010, the electricity use was 22 kwH / t FFB, and the target for 2011 is 21 KwH / t. Records of fossil fuel use in Rekapitulasi Laporan Konsumsi Fosil Fuel shows 40,735 liters in 2010. The target is to reduce this by 5% in 2011. Compliance Status : Full.
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 practices ATSA has a zero burning policy, and has a procedure for palm felling and land clearing (Prosedur Penebangan dan Pembersihan (P-SAG-KBN-PML-03)). The replanting program in 2014 for Mesuji Estate of 500 ha (Blocks 13, 18 and 19) is for the palms to be pushed over by excavator and then chipped without any use of fire (5.5.1 and 5.5.2). There is a procedure established for emergency response to land burning (Prosedur Kesiagaan & Tanggap Darurat di kebun (P-SAG-KBN-DRR-01)). Records of its implementation were sighted (5.5.3). However, it was found that the estates do not have an adequate mobile fire brigade for quick response to fire emergencies. For this, a non-compliance was awarded. Commpliance Status : Not Compliant (See NCR T/04/12/2010).
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Criterion 5.6 Plans to reduce pollution and emissions, including greenhouse gases, are developed, implemented and monitored The mill manager has identified pollution and emission sources in Sumber dan Penanganan Limbah dari Operasional Pabrik. Pollution in ATSA comes mainly from boilers, generator sets and motor vehicles, e.g., dump trucks, backhoe loader, excavators (5.6.1). Monitoring of their exhaust emissions is done regularly by Dinas Tenaga Kerja dan Transmigrasi – UPTD Balai Hiperkes dan Keselamatan Kerja, an external independent laboratory - every 6 months for boiler and yearly for vehicles. The smoke opacity results are recorded in Pengukuran Emisi No. 070/128/UPTD/BHP/2010 in June 2010 and No. 660/143/SHU-LAB/X/2010 in October 2010 as part of its RKL-RPL (Environment Management and Monitoring) Semester Report. The parameters tested for are SO2, NO2, H2S and particulates as per the Ministry of Environment, Republic of Indonesia, regulation Peraturan Menteri Lingkungan Hidup No. 07 Tahun 2007. A check on the reports found that the levels complied with the standards (5.6.2). ATSA has a pollution and emission reduction program in which is prohibited the burning of EFB and domestic wastes in the mill, estates and housing complex; tree planting is encouraged around the mill and housing complex instead (5.6.3). A procedure to treat POME has been established (Prosedur Final Effluent Treatment (P-SAG-PKSPRS-11). The records of monitoring POME are kept in Hasil Analisa Limbah Cair 2010 (5.6.4) and were sighted. Compliance Status : Full.
Criterion 6.1 Aspects of estate and mill management including replanting that have social impacts are identified in a participatory way, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored to demonstrate continuous improvement
ATSA has a method to monitor social information from the locals and its employees. The information is assessed and the results reported to the Environment Manager and concerned parties, such as the environmental impact-controlling agency, as a part of RKL/ RPL. Interviews with the stakeholders indicated that the practice has resulted in improved relationships with the local communities. Compliance Status : Full. Criterion 6.2 There are open and transparent methods for communication and consultation between growers and/or millers, local communities and other affected or interested parties
ATSA has an effective communication and consultation procedure with plasma smallholders and its local communities (Prosedur Komunikasi, Partisipasi dan Konsultasi (P-SAG-RO-QES-07 dated 1 September 2010). It has also drawn up an external communication procedure. Consultation with stakeholders is done at least yearly, and minutes of the meeting on 25 November 2010 were sighted. Adjacent estate officers are responsible for communication with the respective parties on estate activities, while the CAS Department assumes overall responsibility for communication and consultation with stakeholders and to ensure that community programs are run effectively. A list of ATSA stakeholders includes the local communities, NGOs, labour union, contractors and local government: Camat, Police, Military (Muspika: Camat, Kapolsek, Danramil), environmental agency (Bapedalda), Ministry of Labour. Compliance Status : Full.
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Criterion 6.3 There is a mutually agreed and documented system for dealing with complaints and grievances, which is implemented and accepted by all parties ATSA has a complaints, grievance and dispute procedure integrated in its communication procedure (IMS Prosedur : Mekanisme Penanganan Konflik (P-SAG-RO-CAS-03) dated 1.9.2010). Internal complaints and grievances are resolved according the Mutual Working Agreement (Perjanjian Kerja Bersama). These procedures have been communicated to all stakeholders at each mill / estates. It was noted that the responses from stakeholders have been positive. During visits to stakeholders, the audit team confirmed that there were no serious complaints, grievances and disputes at the moment. Local communities and stakeholders obey and respect the company legal rights, reciprocated by the company’s respect for their traditional rights. Compliance Status : Full.
Criterion 6.4 Any negotiations concerning compensation for loss of legal or customary rights are dealt with through a documented system that enables indigenous people, local communities and other stakeholders to express their views through their own representative institutions In this certification assessment, the audit team studied the whole compensation mechanism, and found it satisfactory with no legal action being taken by any party against another. The mechanism has been communicated to the stakeholders. Checks on the records and interviews with the local communities confirmed that there is no current claim on any land although there are some dissatisfied locals with questionable cases, possibly trying to dig gold from ATSA. A check with the Chief of Local Community confirmed that they have no customary rights. Nevertheless, ATSA is ready to hear them out. Compliance Status : Full.
Criterion 6.5 Pay and conditions for employees and for employees of contractors always meet at least the legal or industry minimum standards and are sufficient to provide decent living wages A policy on pay and working conditions in ATSA was established in Memorandum No. 0089/MD/XII/2009 dated 31.12.2009. The salary scales and conditions of work are described in detail for all the positions of employment. ATSA follows all the legislations on working days, working time, salary levels, regional minimum pay and employee insurance. HRD staff inform the workers before-hand of their salary adjustments whenever any are in the offing The policy about wages is also socialized in agreements with contractors (6.5.1.and 6.5.4). Records were sighted that the pay complied with the regional minimum for South Sumatra in 2010 in Upah Minimum Sektoral Provinsi Sumatra Selatan/ UMPSP-SS . Piece-rate workers earned Rp 38,970 a day, or Rp 974,250 a month, above the UMSP-SS rate of Rp 974,216 / month (6.5.2). All ATSA employees are insured under JAMSOSTEK. All workers, if heads of families, are provided a housing unit with piped potable water which is tested regularly to the required standard. There are company clinics in each housing site where sick employees / dependents get free treatment. The more serious cases are referred to the regional hospital and they are allowed to seek alternative medical care for which they are reimbursed. There are nearby state schools which have been renovated and extended by donation from ATSA. Scholarships to students and teachers are offiered, and also book aid and learning kits under the company CSR program (6.5.3). Compliance Status : Full.
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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
ATSA has an agreement with the workers and management staff to allow them to establish a labour union in accordance with national legislation UU No. 13 2003. One has already been established SP Sampoerna Agro. However, only non-staff employees can be Union officers to obviate any conflict of interest. The Union and management of ATSA negotiate the Perjanjian Kerja Bersama, or Mutual Working Agreement, every 2 years. The minutes of some meetings were checked and the meetings found to be properly conducted. Compliance Status : Full.
Criterion 6.7 Children are not employed or exploited. Work by children is acceptable on family farms, under adult supervision, and when not interfering with education programmes. Children are not exposed to hazardous working conditions. ATSA has a policy on child and female workers (Memorandum No. 0016/DMD/XII/2010” on 9.12.2010) signed by a Director and socialized in agreements with suppliers / contractors (6.7.1). No one under 18 years of age is to be employed. Records of personal data of employees - age, marital status, position and rank, location of work, date of commencing employment - are kept. Checking the records confirmed that no one under 18 years old has been employed - in compliance with Indonesian national legislation UU RI No. 13 Tahun 2003, article 68 (6.7.2). Compliance Status : Full.
Criterion 6.8 Any form of discrimination based on race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliation, or age, is prohibited. ATSA is an equal opportunity employer, with promotion mainly based on merit. The Human Resources Regional Head identifies and recommends candidates for promotion to a selection board at ATSA Head Office. ATSA is also committed to providing jobs for the locals, even though they are reluctant to accept due to their increased affluence brought about by the operation of ATSA. Vacancies are posted on notice boards in the mill / estates, and also advertised in the local newspaper. A policy on equal rights regardless of race, caste, national origin, religion has been established and also socialized in agreements with suppliers/ contractors. Compliance Status : Full.
Criterion 6.9 A policy to prevent sexual harassment and all other forms of violence against women and to protect their reproductive rights is developed and applied The Human Resources Regional Head of ATSA has established a policy on prevention of sexual harassment and protection of reproductive rights of its female workers (Kebijakan Pencegahan Pelecehan Seksual, Perlindungan Hak Reproduksi dan Mekanisme Penanganan Keluhan dated 13.7.2010). The policy is displayed at various locations in the mill / estate offices and socialized to the workers in each unit - in Belida Mill and Mesuji Estate on 4.11.2010, and Belida Estate on 6.11. 2010 (6.9.1). The rules have been explained to all workers to ensure their understanding.
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Records of the meetings to communicate the policy have been kept and can be requested from the company. A Committee on Sexual Harassment has been established to receive complaints and recommend remedial action. The policy on sexual harassment and reproductive rights of women are imposed on contractors by being included in their contractual agreements. Female employees are entitled to menstrual leave for 2 days a month, pregnant and childbirth leave for total 3 months for each instance and also allowed to breastfeed for up to 9 months at least 30 minutes a day (6.9.2). Interviews with female workers confirmed that they understood the policy and knew the grievance mechanism for complaints - any female employee sexually harassed by her superior to go to any member of the committee. Checks in the field concluded no pregnant and breast-feeding women working with agrochemicals (6.9.3, 6.9.4 and 6.9.5). Compliance Status : Full.
Criterion 6.10 Growers and mill deal fairly and transparently with smallholders and other local businesses. ATSA has fair, legal and transparent agreements with its suppliers / contractors and plasma smallholders. There are transactions and purchase contracts with contractors and local companies on sale and purchase of FFB, FFB transport and service, maintenance and repair of mill equipment (6.10.1). The price for FFB is determined by the Head of Regional Plantation Section, Agriculture Department of Province South Sumatra via a mechanism based on the CPO price, kernel price (index K) from all palm oil producers and palm oil estates in South Sumatra every two weeks. The FFB price is set at a meeting attended by the representatives of KUDs, or of the plasma smallholders themselves. The minutes of the last meeting are given in Surat 005/185-VI.3/BUN dated 17 December 2010. Checks with KUD Belida and KUD Mesuji confirmed that they had copies (6.10.2). Documents were sighted and interviews with some contractors confirmed that they understood the terms of their contracts well and thought them fair, legal and transparent. Any grievance can be brought up through IMS Prosedur : Mekanisme Penanganan Konflik (P-SAG-RO-CAS-03) dated 1.9.2010. Interviews with the contractors and some plasma smallholders found no grievance about the price (6.10.3). Although the plasma smallholders are independent, and not bound in any way to sell their FFB to ATSA, they still prefer to do so (to Belida Mill) due to the cordial relationships built up with ATSA since its first operation in 1989, and also because of the transparency in FFB weighing and fixed date of payment, usually the 16th of every month. Payment to contractors and plasma smallholders have always been on time as evidenced by their lack of complaints (6.10.4). Compliance Status : Full. Criterion 6.11 Growers and millers contribute to local sustainable development wherever appropriate ATSA is committed to support sustainable development of the local communities through its Corporate Social Responsibility programs which are presented in its Public consultation meeting. Identification of projects is based on community needs, the priorities of each mill / estate and the budget available. Some contributions made have been to :
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-
-
-
-
infrastructure (worship buildings, road maintenance, bridges); education: repairs and building of schools / classrooms, scholarships for students and teachers, books and learning kits; health program “Posyandu” / integrated healthcare service post and health education to promote human hygiene, sanitation and nutrition intake for infants, pregnant and breastfeeding women, fogging to eradicate mosquitos, medical treatment for minor diseases; and environmental program for smallholders: skills training in agricultural practices, tree planting.
The auditors have checked the CSR reports and visited some locations on site and confirmed that the programs were indeed carried out. Interviews with some local communities, elderly people who have lived in the area since the start of the transmigration program in 1973 (and who should therefore know the history of ATSA) revealed that there has been significant improvement in the local communities’ welfare due to the sustainable development brought about by ATSA. Compliance Status: Full. Figure 4. CSR programs : school building and recipients of scholarships.
Figure 5 : Posyandu activities for infants and pregnant / breast-feeding mothers
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Figure 6 : Bridge repair, before and after
Figure 7 : Tree planting
Criteria 7.1 to 7.7 Not relevant as ATSA has no plans for new planting.
Criterion 8.1 Growers and millers regularly monitor and review their activities and develop and implement action plans that allow demonstrable continuous improvement in key operations. ATSA has committed to a process of continuous improvement by adopting the RSPO P & C and getting certified for its integrated management system – by obtaining QMS ISO 9001, EMS ISO 14001 and SMK3. An internal audit and management review is done at least yearly to evaluate the systems. Action plans have been developed for the next one to three years for continuous improvement in key operations through quality and environmental objectives for the mill and estates, such as reducing fossil fuel consumption, reducing usage of agrochemicals, increasing FFB yields and OER. Compliance Status : Full.
3.2 Detailed Non-Conformity Report, Corrective Actions Taken and Auditors’ Conclusions Non Conformity Report – T01.12/10 30.12.2010 Date issued Location Belida and Mesuji Estates RSPO – Criterion : 4.5
NCR issued by : Hasnop Putra Discussed with : Managers and staff
Pests, diseases, weeds and invasive introduced species are effectively managed using appropriate Integrated Pest Management (IPM) techniques.
Monitoring of pesticide usage not done consistently.
Classification
Major
Corrective Action Taken: ‐ Records have since been kept / updated.
Auditee signature:
Minor
Date of implementation: February 2011
Mr. Indra Pangasian Auditor Comments: Corrective action taken verified and accepted from the documentation submitted. The effectiveness of the corrective action will be assessed in the next surveillance audit.
Auditor Comments and Conclusion To check in next verification visit Appropriate action not taken requirement Date of verification: 25 February 2011
Public Summary Report PT. Aek Tarum – Sampoerna Agro (ATSA)
Appropriate action taken Corrective action in compliance with the
Auditor(s) signature:
Mr. Hasnop Putra
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Non Conformity Report – T02.12/10 30.12.2010 Date issued Location Mesuji and Belida Estate RSPO – Criterion : 5.2
NCR issued by : Hasnop Putra Discussed with : Managers and staff
The status of rare, threatened or endangered species and high conservation value habitats, if any, that exist in the plantation or that could be affected by plantation or mill management, shall be identified and their conservation taken into account in management plans and operations.
Description of Finding: Identification of HCV incomplete in Laporan HCV PT Aek Tarum‐Sampoerna Agro, June 2010. Assessment of potential flora and fauna (NKT) in the estates (Mesuji and Belida) was not comprehensive. Classification
Major
Minor
Corrective Action Taken: Date of implementation: February 2011 ‐ A more comprehensive HCV assessment has been conducted on the flora and fauna. ‐ HCV assessment report attached.
Auditee signature:
Mr. Indra Pangasian
Auditor Comments: Corrective action taken evidenced by documentation submitted. The effectiveness of the corrective action will be assessed in the next surveillance audit.
Auditor Comments and Conclusion To check in next verification visit Appropriate action not taken requirement Date of verification: 25 February 2011
Public Summary Report PT. Aek Tarum – Sampoerna Agro (ATSA)
Appropriate action taken Corrective action in compliance with the
Auditor(s) signature:
Mr. Hasnop Putra
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Non Conformity Report – T03.12/10 30.12.2010 Date issued Mesuji and Belida Estate Location RSPO – Criterion : 5.3
NCR issued by : Hasnop Putra Discussed with : Managers and staffs
Waste is reduced, recycled, re-used and disposed of in an environmentally and socially responsible manner
Description of Finding: Used agrochemical packaging wastes not properly handled. The waste management procedure does not specify that the wastes are sent to a proper licensed waste‐collection company. Classification
Major
Minor
Corrective Action Taken: Date of implementation: February 2011 ‐ Used agrochemical containers now handled as per the regulations ‐ Procedure for handling wastes revised. ‐ Records of evidence attached.
Auditee sign:
Mr. Indra Pangasian
Auditor Comments: Corrective action taken by organization evidenced by documentation submitted. The effectiveness of this corrective action will be assessed in the next surveillance audit.
Auditor Comments and Conclusion To check in next verification visit Appropriate action not taken requirement Date of verification: 25 February 2011
Public Summary Report PT. Aek Tarum – Sampoerna Agro (ATSA)
Appropriate action taken Corrective action in compliance with the
Auditor(s) signature:
Mr. Hasnop Putra
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Non Conformity Report – T04.12/10 30.12.2010 Date issued Mesuji and Belida Estate Location RSPO – Criterion : 5.5
NCR issued by : Hasnop Putra Discussed with : Managers and staffs
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.
Description of Finding: The estates do not have an adequate mobile fire brigade to fight fires in emergencies.
Classification
Corrective Action Taken:
‐ ‐
Major
Minor
Date of implementation: February 2011
A tanker has been repaired and made available to the mobile fire brigade. Records of vehicle maintenance program attached.
Auditee sign:
Mr. Indra Pangasian
Auditor Comments: Corrective action taken verified and accepted. Its effectiveness will be assessed in the next surveillance audit.
Auditor Comments and Conclusion To check in next verification visit Appropriate action not taken requirement Date of verification: 25 February 2011 Putra
Public Summary Report PT. Aek Tarum – Sampoerna Agro (ATSA)
Appropriate action taken Corrective action in compliance with the
Auditor(s) signature :
Mr. Hasnop
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Table 7: Summary of findings by RSPO Criterion
Audit type Criterion 1.1 1.2 2.1 2.2 2.3 3.1 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 5.1 5.2 5.3
Audited
Certification Assessment
Audit type
Complia Major nce NC Yes Yes Yes Yes Yes Yes Yes Yes No Yes Yes Yes Yes Yes Yes No 1 No
Complia Major nce NC 5.4 Yes 5.5 No 5.6 Yes 6.1 Yes 6.2 Yes 6.3 Yes 6.4 Yes 6.5 Yes 6.6 Yes 6.7 Yes 6.8 Yes 6.9 Yes 6.10 Yes 6.11 Yes 7.0 N/A 8.1 Yes Total of Nonconformities 1
Minor NC
Total NC
1
1
1
1 1
Criterion
Certification Assessment
Audited
Minor NC
Total NC
1
1
3
4
3.3.1. Noteworthy observations −
The mill and estates are certified to QMS ISO 9001, EMS ISO 14001 and SMK3, making it easier for ATSA to progress to RSPO Certification;
−
ATSA maintains a 50 m riparian strip along its rivers as conservation area;
−
ATSA has a zero burning policy for pollution control in its estates;
−
EFB used for mulching young palms.
−
ATSA is considered to be one of the most effective oil palm estates in managing its plasma smallholders. The bank loan taken by the plasma smallholders to develop their land has been fully repaid under ATSA’s guidance. The locals are now so financially comfortable that they are refusing work in the mill and estates;
−
CSR programs have improved sustainable development of the local communities.
3.3.2. Some Recommendations for Improvement in the Mill and Estates: 1. The medical clinics should be spruced up, and used syringes properly disposed of in order to prevent misuse; 2. Socialization of protected species should be done in attractive posters / leaflets with pictures or photographs and an explanation in the local language(s); 3. Piece-rate workers should be provided proper induction training before starting work, and the records of training kept; 4. The minutes of public consultation meeting should be distributed to the people invited, or their representatives, even if they did not attend.
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3.4.1 Issues raised by stakeholders and findings of the assessment team The audit team did not receive any major complaints in the stakeholder meeting on environmental impacts and social performance of the mill and estate operations. Most of the stakeholders agreed that ATSA has had a positive influence in the area. Interviews were used to obtain feedback – whether positive or negative - from the stakeholders, for which the audit team had prepared some questions. The questions are given in Section 2.10. A stakeholder meeting was held on November 25, 2010 by ATSA to obtain feedback - positive or negative – on its RSPO Certification Assessment. The minutes were taken along with ATSA responses to the queries made. Most of the stakeholder comments on RSPO certification were positive, under which were usually requests for help. The comments are given below. Local Communities
Secretary Village C2 : We support ATSA for RSPO certification, but need a donation to repair the main road in BL 23 connecting Village C2 to Kecamatan (District).
+
ATSA Response : The main road has been graded and compacted as previously proposed, but further repair will depend on whether the Village can provide the material (stone). ATSA will provide the heavy equipment and operator.
Chief of Village Bumi Arjo The road in Village Bumi Arjo needs further improvement, not just grading and compacting. It should be concreted.
+
ATSA Response : Road maintenance in Bumi Arjo is done regulary every four months, and the road sprinkled with water in the dry season. The road is actually a public road, and should be maintained by the government, but is in fact 70% maintained by ATSA and 30% by PT. Wilmar even though other companies also use it. We will discuss with the other companies to undertake joint maintenance.
Junior High School Staff Many smart students need scholarships, and also computers.
+
ATSA Response Please submit the data on smart students with their academic records. The computers can be considered . Cooperatives : KUD Kembang Jajar We need Toh Siang bridge repaired. +
ATSA Response The heavy equipment have been unduly busy, with none to spare for the repair work.
KUD Mulya Jaya The road in Block 22/ 23, Belida Estate needs to be maintained.
+
ATSA Response The heavy equipment have been unduly busy, with none to spare for the repair work.
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Government :
Camat Lempuing. The CSR program budget for village development should be self-managed by the Chief Village.
+
ATSA Response We will consider the idea and think about the mechanism. Head Police of Mesuji Dictrict Construction of the police station is only 75% complete, but all the community funds are finished. A donation is needed to finish the work.
+
ATSA Response Please submit the proposal.
Suppliers : No issues raised. Worker Union : No issues raised Female representative : No issues raised 3.4.2. Attendance list for stakeholder meeting No
Name
Position
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Arif Akhadi Hadi Kasmoyo Zulkarnain M. Yusup Karsudin dr. Hery Yanridhoni Dian Agustiani Budi Hartono Didik Wan Nugroho Sagimin Sri Suyatmi Yuncik Asmadisa Hidayat Mukhayan Sarwono Mulyadi Edy Suparmanto Darmadi Khairul Hidayat Ahmad Warsito Amroni H. Markaban
Camat Lempuing Plt.Camat Mesuji Kapolsek Mesuji Raya Wakil Danramil Camat Mesuji Raya Pimpinan Puskesmas Staf Puskesmas Sekdes Desa C2 Kades Bumi Arjo SMP Negeri 1 Mesuji Raya Kasek SD 1 Sumbersari Kasek SD 2 Sumbersari Kasek SD Sumber Baru Pengurus KUD Desa Kembang Jajar Kabid kebun KUD Mulya Jaya KUD Mulya Jaya Bendahara KUD Karya M KUD Karya M KUD MJ KUD Panca Sawit Makmur CV. Cahaya Baru Kades Tokoh masyarakat
24 25 26 27 28 29 30 31 32 33 34
Mawardi Darul Kutni I Wayan Gede Siria Suradi Wahyu Widodo Sim Beck Sian Hasanudin Muchsin Gono Bambang Budianto Awan Kurniawan Joni Martius
Karang Taruna Kopkar Solapan Jaya SP Sampoerna Agro Kades Desa Sumber Baru (C1) Head Office Head Office Plasma Administrator Head Office Estate Manager Mesuji Belida Estate Belida Estate
Remarks
District Head/ Government (Muspika) District Head/ Government (Muspika) Police/ Government (Muspika) Military/ Government (Muspika) District Head/ Government (Muspika) Head of Local Health Centre Staff Local Health Centre/ Woman repr. Secretary Village/ Local Community Chief Village/ Local Community School teacher/ Local Community Headmaster/ Woman repr. Headmaster Headmaster/ Woman repr. Cooperative Body Cooperative Body Cooperative Body Cooperative Body Cooperative Body Cooperative Body Cooperative Body Smallholder Supplier/ Chief Village Elder people/ Local Community before ATSA established. Youth Organisation Worker Union Worker Union Chief Village/ Local Community ATSA ATSA ATSA ATSA ATSA ATSA ATSA
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3.5 Certified organization’s acknowledgement of internal responsibility Please sign on the certification assessment and confirm acceptance of this assessment report, including its findings. The company General Manager and Senior Manager will sign for the certification assessment report. The complete signatures can be seen in Section 3.6. 3.6 Formal sign-off of assessment findings
Palembang, March.2011
Signed for and on behalf of PT. Aek Tarum – Sampoerna Agro Corporate Management QSE Senior Manager Representative
Dr. Dwi Asmono
Indra Pangasian
Signed for and on behalf of PT. TÜV NORD Indonesia – System Certification Management
Jakarta, March.2011
- Lead Auditor
: Hasnop Putra
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Annex A : Maps of ATSA Mill & Estates
Public Summary Report PT. Aek Tarum – Sampoerna Agro (ATSA) Page 39
Figure A1. Map of PT. Aek Tarum
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Figure A2. Map of Belida Mill and its Supply Base
Public Summary Report PT. Aek Tarum – Sampoerna Agro (ATSA) Page 41
Annex B : D
r
a
f
t
C E R T I F I C A T E
In accordance with TÜV NORD Indonesia procedures, a certificate is hereby awarded
PT. Aek Tarum -Sampoerna Agro Head Office:
Jl. Basuki Rahmat No. 788 Palembang 30127, South Sumatra Indonesia
Belida Palm Oil Mill Mill Location Desa Sumber Baru C1, Kecamatan Mesuji, Kabupaten Ogan Komering Ilir, Sumatera Selatan
GPS location Longitude (E) Latitude (S) 104º 58' 09,82"
03º 50' 13,93"
In recognition of the fact that it applies a Palm Oil Management System for Sustainable Palm Oil Production according with the 2008 National Interpretation of RSPO Principles and Criteria of the Republic of Indonesia for producing the following volumes of CPO and PK:
Production of Crude Palm Oil and Palm Kernel CPO claimed Palm Kernel claimed
20,937 t / year 5,457 t / year
Certificate Registration No: TNI –RSPO 009.2010 Audit Report No. SPO-ID10004 Issued date of Certificate : RSPO approval dateValid Certificate : President Director This certification was carried out in accordance with the TÜV NORD Indonesia auditing and certification procedures and is subject to regular surveillance audits. PT. TÜV NORD Indonesia is a subsidiary of TÜV NORD CERT GmbH Langemarckstrasse 20 D - 45141 Essen, Germany
Public Summary Report PT. Aek Tarum – Sampoerna Agro (ATSA) Page 42
Annex to Certificate – RSPO (Supply Base) Certificate Registration No: TNI-RSPO 009.2010 The scope of certification of Mill and Supply base cover is
Estate
Belida
Mesuji
Location
Desa Sumber Baru C1, Kecamatan Mesuji, Kabupaten Ogan Komering Ilir, Sumatera Selatan Desa Surya Adi, Kecamatan Mesuji, Kabupaten Ogan Komering Ilir, Sumatera Selatan
FFB Production (t)
GPS Coordinates Longitude (E)
Latitude (S)
58,678
105º 01' 27,4"
03º 49' 42,7"
40,547
105º 01' 36,5"
04º 02' 59,7"
Public Summary Report PT. Aek Tarum – Sampoerna Agro (ATSA) Page 43
Annex C : Certification Assessment Plan Client:
PT. Aek Tarum (Sampoerna Agro)
Address:
Jl. Basuki Rahmat. 788 Palembang, Sumatera Selatan - Indonesia
MR Name, Pos.:
Mr. Indra Pangasian
Number of Mills:
1
Number of estate(s):
2
Order No.
-
Business No.
Mill(s), Location(s)
Estate(s), Location(s)
Belida POM, Kab. OKI, Sumatera Selatan;
1. Belida Estate, Kab. OKI, Sumatera Selatan 2. Mesuji Estate, Kab. OKI, Sumatera Selatan
Standard:
-
RSPO P&C (Principles & Criteria) May 2008; INA-NIWG
Type of audit: Certification Audit
Audit date:
27-30.10.2010
Lead Auditor:
Hasnop Putra (HAP)
Trainee / Expert:
Dr. Hariyadi (HA)
Auditor(s):
Wieke Savitri (WS)
Audit days on-site:
4 days
1)
Date / Time
Site / Shift / Organizational Unit
Auditor (Abbrev.)
Interview2) partner
Requirements
Day – 0: 26.22.2010 Æ Traveling to site location Day – 1: 27.10.2010 Æ Belida POM Office 09:00-09:15
09:15 – 12:00
Opening meeting
Introduction team and fine tune audit plan (if necessary)
Site: Belida POM Office
- General issues for RSPO certification assessment - SPO documentations and records - Environmental Policy - Justification for RSPO principles and criteria - Principle – 1: 1.1, 1.2 - Principle - 2: 2.1 - Principle – 3: 3.1
HAP, WS
RSPO team
12:00 – 13:30 Break and lunch Æ HAP travelling to Mesuji Estate
13:30 – 17:00
POM Operations
WS, HR
RSPO team
- Quality, SM-K3 and Environmental Management System. - Involved personnel and responsibilities - Chemical stores. - Monitoring and measurement of environmental performance of waste water treatment plant. - Mill operation including inspection of incoming FFB, FFB transport, road maintenance and workshops for heavy trucks, loaders, etc. - Principle - 4 : 4.1, 4.4, 4.7, 4.8 - Principle – 5 : 5.4, 5.6 - Principle – 6 : 6.1, 6.2, 6.3, 6.5, 6.6, 6.8, 6.10, 6.11 - Principle – 8 : 8.1
17:00: End of day assessment Æ WS + HR Traveling to site location Mesuji Estate
Public Summary Report PT. Aek Tarum – Sampoerna Agro (ATSA) Page 44
Day – 1: 27.10.2010 Æ Mesuji Estate 12:00 – 13:30 Break and lunch : Mesuji Estate -
13:30 – 17:00
Estate Operations
HAP
RSPO team -
Quality, SM-K3 and Environmental Management System. Involved personnel and responsibilities Chemical stores. Estate operation Principle - 4 : 4.1, 4.4, 4.7, 4.8 Principle – 5 : 5.4, 5.6 Principle – 6 : 6.1, 6.2, 6.3, 6.5, 6.6, 6.8, 6.10, 6.11 Principle – 8 : 8.1
17:00: End of day assessment 1)
Date / Time
Site / Shift / Organizational Unit
Interview2) partner
Auditor (Abbrev.)
Requirements
Days – 2: 28.12.2010 Æ Mesuji Estate
Sites: Mesuji Estate office
09:00-12:00
HAP ,WS, HR
Public Consultation Involved personnel and responsibilities Socio economic impacts on the local population
RSPO team
12:00 -13:30 Break and lunch 13:30 – 15:00
Estate operations
HAP & WS, RSPO team HR -
15.00 – 16.00
Reporting
HAP & WS
Flora, fauna, ecology and biodiversity Land and conversion planting Decreased paraquat use HCV identification IPM (Integrated Pest Management) Replanting and handling of chemical packaging wastes Zero burning Principle - 4 : 4.1, 4.2, 4.3, 4.4, 4.5, 4.6, 4.7, 4.8 Principle – 5 : 5.1, 5.2, 5.5 Principle – 6 : 6.1, 6.2, 6.3, 6.5, 6.6, 6.7, 6.8, 6.10, 6.11 Principle – 7 Principle – 8 : 8.1
RSPO team
17:00: End of assessments Æ Travelling to Belida Estate 1)
Date / Time
Site / Shift / Organizational Unit
Auditor (Abbrev.)
Interview2) partner
Requirements
Days – 3: 29.12.2010 Æ Belida Estate
09:00-12:00
Sites: Belida Estate office
HAP ,WS, HR
- Public Consultation RSPO team - Involved personnel and responsibilities - Socio economic impacts on the local population
12:00 -13:30 Break and lunch
Public Summary Report PT. Aek Tarum – Sampoerna Agro (ATSA) Page 45
13:30 – 16:00
Estate operations
HAP & WS, RSPO team HR -
16.00 – 17.00
Reporting
17.00
End of udit day 1)
Date / Time
Site / Shift / Organizational Unit
Flora, fauna, ecology and biodiversity Land and conversion planting Decreased paraquat use HCV identification IPM (Integrated Pest Management) Replanting and handling of chemical packaging wastes Zero burning Principle - 4 : 4.1, 4.2, 4.3, 4.4, 4.5, 4.6, 4.7, 4.8 Principle – 5 : 5.1, 5.2, 5.5 Principle – 6 : 6.1, 6.2, 6.3, 6.5, 6.6, 6.7, 6.8, 6.10, 6.11 Principle – 7 Principle – 8 : 8.1
HAP & WS, RSPO team HR
Auditor (Abbrev.)
Interview2) partner
Requirements
Days – 4: 30.12.2010 Belida Estate Office HAP & WS, RSPO team
08.00 -10.00
Closing meeting and Presentation of audit finding
10.00
End of Initial Assessment RSPO audit
Traveling to Palembang and going back to Jakarta
Public Summary Report PT. Aek Tarum – Sampoerna Agro (ATSA) Page 46
