Making our world safer
RSPO CERTIFICATION ASSESSMENT PUBLIC SUMMARY REPORT Date of assessment 21 to 25.02.2011
PT. TUVNORD Indonesia System Certification Management Has assessed PT. PP LONDON SUMATRA Tbk Palm Oil Mill and Supply Base for Compliance to RSPO Principles and Criteria for Sustainable Palm Oil Production
Tirta Agung POM and Supply Base
CPO 25,327 t & PK 7,233 t
Report prepared by Wieke Savitri
Public Summary Report PT.PP London Sumatra Tbk _ Tirta Agung Mill and Supply base
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TABLE OF CONTENTS Summary
3
Abbreviations Used
3
1.
4 4 4 5 5
2.
3.
SCOPE OF THE CERTIFICATION ASSESSMENT 1.1 National Interpretation 1.2 Scope of Certification 1.3 Location 1.4 1. Areas of estates 2.Description of Supply Base 3 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 Approximate Tonnages Certified 1.9 Date Certification Issued and Scope of Certificate
6 7 7 8 8 9
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 10 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 public consultation meeting 3.5 Certified organization’s acknowledgement of internal responsibility 3.6 Formal sign-off of assessment findings
15 15 31
11
12 12 13 13 14 14
33 33 34 36 37 37
ANNEXES A B C
Maps of Tirta Agung Mill and Estates Draft RSPO Certificate Certification Assessment Plan
Public Summary Report PT.PP London Sumatra Tbk _ Tirta Agung Mill and Supply base
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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. PP London Sumatra Tbk (LONSUM), at Musi Banyuasin 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. PP London Sumatra Tbk (LONSUM) be approved as a producer of RSPO Certified Sustainable Palm Oil. This certification assessment is on Tirta Agung Mill producing a total 25,327 t/year CPO and 7,233 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)
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)
KLH
Kementrian Lingkungan Hidup (Ministry of Environment)
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KUD
Koperasi Unit Desa (Village Cooperative)
LCC
Legume Cover Crop
LD50
Lethal Dosage (50% mortality of tested population)
LSM
Lembaga Swadaya Masyarakat (NGO(s))
Lonsum
PT. PP London Sumatra Tbk
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)
SPSI
Serikat Pekerja Seluruh Indonesia (Worker Union)
TAM
Tirta Agung Mil and Supply basel
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. PP London Sumatra Tbk_Tirta Agung Mill and Supply base.
1.2 Scope of Certification
The scope of certification is the production from 1 (one) mill supplied by 3 (three) companyowned estates. The mill also processes smallholder FFB, but they are not included in the claimed certification.
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1.3 Locations PT. London Sumatra Tbk_Tirta Agung Mill and supply base (will be titled “TAM”) is offering 1 (one) mill and 3 (three) estates in Kabupaten Musi Banyuasin, Province of South Sumatra, Indonesia for certification. The locations of the mill and estates are shown in Figures A-1 with their GPS coordinates (The readings for the estates are for their offices). Table 1: GPS Coordinates for Mill and Estates of LONSUM – Musi Banyuasin (South Sumatra) (Estate coordinates are for their offices)
GPS coordinates Code TAM
Unit
Location
Longitude (E)
Tirta Agung POM
BTE
Kabupaten Musi Banyuasin, South Sumatera Kabupaten Musi Banyuasin, South Tirta Agung Estate Sumatra Kabupaten Musi Banyuasin, South Budi Tirta Estate Sumatra
SDE
Suka Damai Estate
TAE
Kabupaten Musi Banyuasin, South Sumatra
Latitude (S)
E-104◦ 1’ 57”
S-2◦ 11’ 11”
E-104◦ 00’ 55”
S-2◦ 11’ 39”
E-103◦ 58’ 55”
S-2◦ 8’ 56”
E-103◦ 59’ 56”
S-2◦ 22’10’’
1.4.1 Areas of Estates Three (3) estates are included in this certification assessment. Their land use data are given in Table 2. Table 2: Land use data for TAM (as at December 2010)
Tirta Agung Estate
Planted (ha) HCV (ha) Total Planted+ HCV (ha) HGU (ha)
Budi Tirta Estate
Suka Damai Estate
Total area
3,673.12
3,641.31
2,716.42
10,030.85
190.76
285.15
115.12
591.03
3,863.88
3,926.46
2,831.54
10,621.88
3,990.30
4,206.80
3,214.20
11,411.30
1.4.2. Description of Supply Base FFB for the mill are sourced from 3 (three) company-owned estates and also smallholders and third party suppliers. TAM manages ± 11,411.30 ha of its own estates, and also receives FFB from smallholders and from third party FFB suppliers. The smallholders and third party FFB suppliers are, however, independent, not beholden in any way to sell their fruits only to LONSUM. In Budi Tirta Estate the FFB is fully supplied by company-owned estate. In Tirta Agung Estate, the scheme is independent smallholders, while in Suka Damai Estate the plasma smallholders has established a co-operative group. The total smallholders and third party FFB received in 2010 (January – December) was 27,703.96 t (19.31% of the total processed by Tirta Agung Palm Oil Mill). The respective volumes of FFB processed from the estates and smallholders are given in Table 3.
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Table 3: Sources of FFB processed by Tirta Agung Palm Oil Mill (January – December 2010)
Source of FFB
FFB (t)
Tirta Agung Estate
Percentage (%)
53,831.04
37.52%
Budi Tirta Estate Suka Damai Estate Total LONSUM-Owned Estates Smallholders Third party suppliers Total smallholders and third party
18,543.00 43,397.38 115,771.42 3,961.20 23,742.76 27,703.96
12.92% 30.25% 80.69% 2.76% 16.55% 19.31%
Total FFB processed
143,475.38
100.00%
The smallholders was developed as part of TAM’s commitment to help the local community development by advising them on how to plant oil palm. TAM is committed to fully support 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. 1.4.3. Company Background and Ownership History
The origin of PT Perusahaan Perkebunan London Sumatra Indonesia Tbk goes back over more than a century to 1906 with the initiatives of the London-based Harrisons & Crossfield Plc, as a general trading and plantation management services firm. The London-Sumatra plantations, which later came to be known as “Lonsum”, evolved over time to become one of the world’s renowned plantation companies, with almost 100,000 hectares of planted oil palm, rubber, tea and cocoa plantations spread across Indonesia’s four largest islands. Having diversified into rubber, tea and cocoa in its early years, Lonsum concentrated on rubber throughout Indonesia’s formative years as an independent nation, and commenced oil palm production in the 1980s. By the end of the following decade, oil palm had replaced rubber as the Company’s primary commodity. Lonsum’s 38 inti estates (Company owned) and 14 plasma estates (smallholder farmer), which are currently operational in Sumatra, Java, Kalimantan and Sulawesi, make use of advanced research and development as well as agro-management expertise and a highly skilled and an experienced workforce. The scope of the business has broadened to include plant breeding, planting, harvesting, milling, processing and the selling of palm products, rubber, cocoa and tea. The Company now has 20 factories which are operational in Sumatra, Java and Sulawesi. Lonsum is known in the industry for the quality of its oil palm an cocoa seeds, and this high-tech business is now a major growth driver for the Company. PT PP London Sumatra Indonesia Tbk currently has totally 11 Palm Oil Mills and 28 Palm Oil Estates and one of the active RSPO members. In 1994, Harrisons & Crossfield sold its entire interest in Lonsum to PT Pan London Sumatra Plantation (PPLS), which took Lonsum public by listing its shares on the Jakarta and Surabaya stock exchanges in 1996. In October 2007, Indofood Agri Resources Ltd, the plantation arm of PT Indofood Sukses Makmur Tbk, became the Company’s majority shareholder through its Indonesian subsidiary, PT Salim Ivomas Pratama. PT. London Sumatra Tbk_Tirta Agung Mill (TAM) operations in Kabupaten Musi Banyuasin (Muba), South Sumatera, consist of one mill and three estates : Tirta Agung POM, Tirta Agung Estate, Budi Tirta Estate and Suka Damai Estate under its subsidiary, PT Panca Tirta Budi Agung (PTBA). The acquisition of lands has done in 1996-1999 and in 2005-2007 with total area 11,411.30 ha.
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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. Tirta Agung Estate and Suka Damai Estate were first planted in 1996, thus the earliest replanting would therefore be in 2021. Budi Tirta Estate was planted a year later (1997), and the first replanting would only be in 2022. The summary of area statistics of planted oil palms is given in Table 4 and the detailed age profile of planted palms and total area is given in Table 5. Table 4: Area statistics of planted oil palms in Tirta Agung Estate, Budi Tirta Estate and Suka Damai Estate for this certification assessment (as at December 2010)
Estates
Area Summary Mature (ha) % 3,479.58 94.73%
Tirta Agung
Total (ha) 3,990.30
Planted (ha) 3,673.12
Budi Tirta Suka Damai
4,206.80 3,214.20
3,641.31 2,717.42
2,768.57 2,702.57
Total area
11,411.30
10,030.85
8,950.72
Immature (ha) 193.54
% 5.27%
76.03% 99.49%
872.74 13.85
23.97% 0.51%
89.23%
1,080.13
10.77%
Table 5 : Age Profile of Planted Palms in 3 Estates in December 2010 Suka Tirta Agung Budi Tirta Damai Year of Age Estate Estate Estate planting (years) (ha) (ha) (ha) 1996 1997 1998 2004 2005 2006 2007 2008 2009
14 13 12 6 5 4 3 2 1
1,369.72 1,312.66 576.62 194.58 26,00 147.06 46.48
214.00 59.40 500,30 906.27 1,400.00 359.74 201,60
1,371.46 435.96 603.74 117.62 173.79 13.85
Total (ha) 2,741.18 1,962.62 59.40 1,180.36 694,88 1,049.89 1,573.79 506.80 261.93
Year of replanting planned
2021 2022 2023 2029 2030 2031 2032 2033 2034
1.6 Other Certifications Held TAM has been certified to:
ISO 14001 for Tirta Agung POM, Tirta Agung Estate, Budi Tirta Estate and Suka Damai Estate;
SMK3, based on Permenaker No. 5 Tahun 2005 by the Ministry of Labor of the Republic of Indonesia for Tirta Agung POM and Tirta Agung Estate;
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Organizational Information/ Contact Person All information in respect of this certification assessment for RSPO should be addressed to: Contact Person
Mr. Adi Bastomi
Position Organization name Address Postal code, city Country Telephone Fax
Head of Environment and CSR Co-ordination Department PT PP London Sumatra Indonesia Tbk Jl. Ahmad Yani No.2 PO Box 1154, Medan 20111 North Sumatra Indonesia +62 61 4532300 +62 61 4159211
[email protected]
Email
1.7 Time-Bound Plan for Other Certification Units LONSUM has achieved RSPO certification for 4 (four) mills and 12 (tweleve) estatates in North Sumatera area since 2009. However, LONSUM already has the desire to obtain the RSPO certification for other 5 (five) mills and its supply base in South Sumatra and 1 (one) mill and its supply base in East Kalimantan which has been operated in the end of year 2009. The time-bound plan for doing so is set out in the table below: Annual Outputs* No
Mills
Location
CPO (tonnes)
PK (tonnes)
Proposed Time for Certification
1
Gunung Bais
Musi Rawas, Sumatera Selatan
10,683
2,139
December 2011
2
Arta Kencana
Lahat, Sumatera Selatan
18,330
4,112
December 2012
3
Belani Elok
Musi Rawas, Sumatera Selatan
50,799
12,837
December 2013
4
Sei Lakitan
Musi Rawas, Sumatera Selatan
64,828
16,183
December 2014
5
Terawas
Musi Rawas, Sumatera Selatan
21,533
4,796
December 2015
6
Pahu Makmur
Kutai Barat, Sumatera Selatan
December 2016 Area Summary*
No
Estates
Location
Total (ha)
Planted (ha)
Proposed Time for Certification
1
Gunung Bais
Musi Rawas, Sumatera Selatan
3,050.0
1,789.3
December 2011
2
Arta Kencana
Lahat, Sumatera Selatan
2,099.1
1,673.5
December 2012
3
Kencana Sari
Lahat, Sumatera Selatan
2,566.0
1,592.1
December 2012
4
Sei Kepayang
Musi Rawas, Sumatera Selatan
3,709.1
2,384.3
December 2013
5
Bukit Hijau
Musi Rawas, Sumatera Selatan
3,229.1
1,215.1
December 2013
6
Ketapat Bening
Musi Rawas, Sumatera Selatan
1,723.6
1,418.3
December 2013
7
Belani Elok
Musi Rawas, Sumatera Selatan
5,053.0
1,999.2
December 2013
8
Batu Cemerlang
1,393.3
December 2014
Sei Lakitan
Musi Rawas, Sumatera Selatan Musi Rawas, Sumatera Selatan
4,114.1
9
4,818.0
2,705.5
December 2014
10
Riam Indah
Musi Rawas, Sumatera Selatan
5,698.5
3,182.3
December 2014
11
Sei Gemang
Musi Rawas, Sumatera Selatan
5,509.5
3,113.0
December 2014
12
Terawas*
Musi Rawas, Sumatera Selatan
13
Issuy Makmur
Kutai Barat, Kalimantan Timur
27,117.1
1,712.4
December 2016
14
Pahu Makmur
Kutai Barat, Kalimantan Timur
16,341.9
2,843.7
December 2016
December 2015
*Note : Terawas Estate only for seedling estate
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LONSUM also has future plans to provide training and awareness about the RSPO certification process to smallholders / out growers for the mills that receive the fruit from the plasma farmers/ outgrowers. One of these preparation programs is introducing RSPO certification toward the plasma farmers through the training implementation of RSPO Principles and Criteria, in cooperation with the RSPO Indonesia Liaison Office (RILO), Ministry of Agriculture, and WWF Indonesia. Induction described in this training and the impact of RSPO sustainable palm oil, which the farmers will accept if they were in the certification. 1.8 Approximate Tonnages Certified All FFB produced from the company’s 3 (three) estates are processed by Tirta Agung POM. The production from smallholders/ outgrowers FFB is not included within the scope of this assessment at this time. The volumes claimed for certification by Tirta Agung POM are shown in Table 6: Table 6: Palm oil / palm kernel volumes claimed for certification Annual Production from company estates (t) Mill
Tirta Agung
Estates Tirta Agung Budi Tirta Suka Damai TOTAL
CPO
PKO
PK
11,776.62 4,056.65 9,494.04
3,363.36 1,158.57 2,711.47
25,327.31
7,233.40
Note : The volumes are the actual production from January to December 2010, OER = 21.87%, KER = 6.24%
1.9 Date Certification Issued and Scope Certificate The scope of the certificate to be issued covers the production from 1 (one) palm oil mill and 3 (three) 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 TAM was carried out from February 21 to 25, 2011. 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 TAM 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 would raise doubt on the capability of TAM 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
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Conditions and factors in TAM that will allow it to better satisfy the requirements of the relevant standards;
Strengths, weaknesses, opportunities and threats of TAM
The final certification assessment was made after issuance of the Corrective Actions Taken statement by TAM. 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 TAM documentation was submitted in January 2011 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 TAM 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 TAM management system is implemented within the organization. The certification assessment was carried out from 21 to 25 February 2011. TÜV NORD Indonesia conducted on-site interviews with TAM management, and palm oil mill / estate personnel to verify some information and resolve issues arising from reviews of the documents and TAM 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 TAM management;
−
Management Policy and Quality, SM-K3 and Environmental Management System;
−
Involved personnel and their responsibilities;
−
Justification of RSPO P & C;
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−
Monitoring and measurement of environmental performance for waste water treatment;
−
Identification of environmental aspects and impacts;
−
Flora, fauna, ecology and biodiversity;
−
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 −
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. TAM was required to close out the outstanding if there is any 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 2 minor 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
: Sudarmadji
He has a background in electrical engineering; and qualified in environmental auditing with sustainability management system such as EMS. He has completed training as Lead Auditor ISO 14001, ISO 900, Occupational Health & Safety management system and CDM certification. He has completed training as Lead Assessor / Internal Assessor Sustainable Palm Oil by Indonesia Palm Oil Board and KAN (National Accreditation Committee). He is an experienced auditor in several audits palm oil manufacturers assessment based on ISO 14001, with a total minimum 15 days of audit. As team member involved in RSPO certification assessment for PT. PP London Sumatra Indonesia, Tbk (North Sumatera Province) in October – November 2008; and PT. Sahabat Mewah dan Makmur in December 2009.
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Assessor
: Wieke Savitri
Graduated from Agriculture Faculty in Bogor Agricultural University, 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 DanoneAqua - 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. Herdhata Agusta
He has bachelor degree in Agriculture from Bogor Agricultural University (IPB), and holds a doctorate (S3) in Landscape Ecology from University of Hohenheim, Germany. He has a strong background and experience in the Evaluation for Environmental Impact Assessment and aspects of agriculture as a lecturer in Agriculture, Environment and Ecology. Has extensive experience in research such as application of waste of forestry and agriculture for erosion control, weed control and conservation of water soluble phosphate in the soil; ecological performance influencing productivity of people`s plantation. 2.8 Outline of how stakeholders were interviewed Stakeholder consultations began with notification of the upcoming assessment in the websites of RSPO and LONSUM. Telephone calls, e-mails, facsimiles or letters were sent to the applicable stakeholders. TAM has held regular meetings with its stakeholders in accordance with its communication procedure “Prosedur Komunikasi”, or Communication (EMS-P05 Rev.4 dated on 10 August 2009). 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 TAM palm oil mill and supply bases.
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2.9 List of Stakeholders The table below lists the stakeholders involved: Statutory Body Kantor Bupati Musi Banyuasin
Contact Person (if applicable and address)
Phone
Bpk. Ir. H. Fahri Azhari Sekayu, Kab. Musi Banyuasin Bpk. Uzer Effendi Sekayu, Kab. Musi Banyuasin Bpk. Johar Arifin Sekayu, Kab. Musi Banyuasin
0714-321021
Sekretariat Daerah (Regency Secretary)
Bpk. Yusri Efendi Sekayu, Kab. Musi Banyuasin
0714-321954
Polres Musi Banyuasin (Regency Police)
AKBP F. Barung Manggarai
081340652030
Kodim Musi Banyuasin (Regency Military) Camat Bayung Lencir (Disctrict Office)
Letkol. Susanto
Koramil Bayung Lencir (District Military) Polsek Bayung Lencir(District Police)
J. Sianturi
Badan Lingkungan Hidup Sumsel
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
DPRD Tk.II (Regency Parliementary) Kejari (Regency Attorney)
Depnaker Sumsel
Dinas Perkebunan Sumsel
Indigenous people
E-mail
0714-321061 0714-321291
Bustamil Arifin
AKP Suhardiman 0711-355360 0818465152
0711-354013, 354657, 357293
0711-351451
Contact Name (if applicable and address)
Phone
E mail
Contact Name (if applicable and address)
Phone
E mail
N/A Local Community Desa Mangsang (Villager) Desa Suka Damai (Villager)
Zainal Arifin Abdul Hadi
Local youth Governemnt Elementary School
Maryono Cholifah
Workers’ Organization
Contact Name (if applicable and address)
DPC SPSI Kabupaten Musi Banyuasin Hamsiah SPSI Tirta Agung Selamat Riyadi SPSI Suka Damai Aidi Umar
Smallholders / Outgrowers PT. Mentari Subur Abadi PT. Banyu Kahuripan Teratai Biru Group Independent supplier of materials and services CV. Dewa Sawit Mandiri) PT. SI Supplier NGO WWF Indonesia
Contact Name (if applicable and address)
081919115121
Phone
E mail
081367332133 081994903856
Phone
E mail
Phone
E mail
Ajusman Contact Name (if applicable and address) Senen Effendi Hong Tjin Jimmy Contact Name (if applicable and address) Wiwin Effendi
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08197871567 081958563588 Phone
E mail
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2.10 Questions posed in interviews with stakeholders
Did TAM provide information on the RSPO certification exercise including plans for safety and health to the public and stakeholders?
Does TAM hold regular meetings on community development?
Does TAM 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 TAM for planting oil palm?
Is there any environment impact caused by the operations of TAM?
Is there a procedure for settlement of conflicts communicated to the local community?
Does TAM meet with stakeholders regularly to discuss issues on community development?
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-years 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 3 (three) estates, and smallholders. 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 two (2) 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. TAM has prepared a Corrective Active Plan which date for implementation has been accepted by TNI. The effectiveness of the corrective actions for the minor nonconformities will be checked on the next surveillance. 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.
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TAM has a procedure for communicating with stakeholders as decribed in “Prosedur Komunikasi”, or “Communication Procedure”, (EMS-P05 Rev.4 dated on 10 August 2009). 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 „Daftar Permintaan dan Tanggapan dari Pemangku Kepentingan“ or “List of information and response from Stakeholder” (Form No. SPO-01) for each mill/ estate. (1.1.1). The response(s) are prepared by the heads of mill / estates or by the Area Manager Agronomy depending on their importance. Stakeholders aspiration, especially for asking donation will be transfered to Area Manager Agronomy before reported monthly to Environment & CSR Dept Department in Head Office and approved by BOD (1.1.2). The records of requests / responses will be kept for 5 (five) years as stated in “Procedure Control of Records” dated on 10.08.2009, (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. All management documents on legal, environmental, health safety and social issues are publicly available upon request. The legal documents are : • Izin Lokasi (Site Permit), • Izin Usaha Perkebunan (Plantation Operation Permit) from Direktorat Jenderal Perkebunan No.HK.350/E5.1307/12.97 dated on 23.12.1997 for oil palms plantation with total area 20,050 ha in Kecamatan Bayung Lencir Kabupaten Musi Banyuasin. • HGU (Land Use Title), HGU No.11 Kabupaten Musi Banyusin Kecamatan Bayung Lencir, Desa Mangsang dan Muara Merang from Kantor Pertanahan Kabupaten Musi Banyusin valid for 35 years until 05.08 2038; HGU No.10 Kabupaten Musi Banyuasin, Kecamatan Idem, Desa Suka Damai valid for 35 years until 05.08 2038 The environmental documents for ANDAL (Environmental Impact Analysis) approved by Badan Lingkungan Hidup Daerah (BAPEDALDA) Tingkat II (Regional Environmental Body Kabupaten Musi Banyuasin (Muba) in 2004. Various environmental parameters are measured and reported sixmonthly in Laporan Pelaksanaan Rencana Pengelolaan Lingkungan Hidup dan Rencana Pemantauan Lingkungan Hidup (RKL & RPL). Since TAM 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 for the proper periods as stated in “Procedure Control of Records” dated on 10.08.2009,, e.g., safety, health and environment reports for 5 years, social records 5 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, agricultural skills training for the locals (estate workers and smallholders), honor for school teachers, scholarships available, renovation aid for schools, roads, worship buildings. Compliance Status : Full.
Criterion 2.1 There is compliance with all applicable local, national and ratified international laws and regulations
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TAM keeps copies of all the legislations / regulations applicable to it from the applicable regulation list in “Prosedur EMS-PO2 rev.4 “Legal Requirements“ dated on 10.08.2009, compiled by Environmental & CSR Departrment in Head Office which has to keep track of its (LONSUM’s) legal requirements and makes sure that they are complied with., that covers Legislation (Perundangan), Regulation (Peraturan), Decree (Keputusan) & Directives (Pedoman) , Permit (Perijinan), Treaties (Pakta), Convention (Konvensi) and Protocol; Judgement of Court (Putusan pengadilan). The Legal Department in Head Office is responsible for validating / renewing licenses and permits, especially land permit, while Head of Engineering & Processing responsible for license/ of mill operation since TAM has ISO 14001 certification for its environmental management and also SM-K3 for Health Safety Environment. 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 as required by SMK3). The regulation list is evaluated annually during internal audit as required by Procedure EMS-P09 Rev.3 „Evaluation of Compliance“ dated on 10.08.2009, the last audit internal was conducted on January 2011. 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 Currently, there are no claims on TAM land in Musi Banyuasin by anyone. The mill / estate managers have ensured proper registration of their HGU certificates in the acquired land register. In 2004, there were evidence that TAM gave land compensation acknowledged by Chief Village and Camat (Head of District) with photographs and signatures of the persons who receive the compensation The records pertaining to the compensation were sighted and well maintained. (2.2.1). The boundaries of TAM 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 Musi Banyuasin (National Land Agency of Musi Banyuasin). (2.2.2). There is mechanism to monitor the boundary stones periodically. The Legal Department in Head Office is responsible for resolving any conflict over land refers to SOP Oil Palm Development Procedure:OP2.2 „Land Acquisition and Compensation“ (2.2.3). Compliance Status : Full. Figure 1. Boundary stones
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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, according to HCV report in 2007 there was no indigenous people around the mill and estates. Compliance Status : Full.
Criterion 3.1 There is an implemented management plan that aims to achieve long term economic and financial viability TAM 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 for all corporate of PT. PP London Sumatra Tbk (Lonsum). For TAM (Tirta Agung POM, Tirta Agung Estate, Budi Tirta Estate dan Suka Damai Estate) there is 10 years projection from 2010 – 2020 including mill allocation, production of FFB (tonnage) FFB/ ha (yield); OER, by predicting inflation rate; exchange rate; interest rate; portion cash; dividen; non deductible expensive; working hours; turnover; a% allowance for doubtful accounts, age of asset; price of FFB purchase; cost to build a mill. Compliance Status : Full.
Criterion 4.1 Operating Procedures are appropriately documented and consistently implemented and monitored TAM has Standard Operating Procedures with the best practices for its mill and estate operations. The mill and estates have been certified to, EMS ISO 14001 and HSE management SMK3 by 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 . OP Oil Palm Procedures, issued 21.4.2008 by managing director operations are : OP 1 : Nursery Preparation and Upkeep OP 2 : Preparation and Planting OP 3 : Immature upkeep OP 4 : Harvesting OP 5 : Mature Upkeep OP 5.1 : Weeding OP 5.2. : Pests OP 5.3 : Diseases OP 5.4 : Prunning and Frond Placement Policy OP 5.5 : Fertilizer management OP 5.6 : Utilisation of by-products OP 5.7 : Cencus and Survey operations OP 5.8 : Waste Management OP 5.9 : Petroleum Hydrocarbon OP5.10 : HCV OP 5.11. ERP and Forest ground fire OP 5.12. Environmental Monitoring, Management of Riparian Strip • SOP for Palm Oil Mill [fruit processing, boiler operations, power generation, water treatment, land application of POME, electrical systems, quality (including monitoring of CPO parameters), dispatch and laboratory inspection of incoming fresh fruit bunches]; and
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• 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. Daily Implementation and Monitoring of the SOP is documented in reported in LPF (Lonsum Procedure Form). The LPF report should be approved by Acting Assistant Manager and verified by Assistant. The results of the daily reports are summarized in monthly report. Monthly report of December 2010 contains figures of crop protection activities, fertilizer application, climate data, block list and hectares, nurseries statemnt, field upkeep, crop harvest and statistics, personal data, stores and fixed asset. Other kind of Monitoring kinds include site visit, monthly meeting. Site visit of Operation Director of South Sumatra to Budi Tirta Estate for example, was conducted on 8-9 October 2009. Meeting protocol on 29.01.2011 discussed about FFB and Harvest Quality, Policy upkeep, Harvest labours, cover crops management. 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 There are some agronomic practice to improve and maintain soil fertility implemented in LONSUM : 1. Plant Legume Cover Crops 2. Pruning and frond stacking 3. Weeding, especially wild fern (Stenochlaena palustris) 4. Fertilizing Recommendation of fertilizing dosage is prepared by BLRS (Bah Lias Research Station/ Sumatera BioScience), its own laboratory in Medan, North Sumatera. After taking sample of Leaf Sampling Unit of in ratio area of 5% of 17th leaf of 28 trees in a row in February each year, BLRS analyses the leaf samples and recommends the dosage of fertilizer application. Each sample represents every 25 ha area. The recommendation will be submitted to the estate by September the same year. The fertilization frecuency is once or twice a year. Compliance Status : Full.
Criterion 4.3 Practices minimise and control erosion and degradation of soils Generally, the topography of the three estates are flat and gently rolling with slopes of 0 – 8% from the ANDAL done (based on data in 2004). As there are no fragile soils (including peat) according to a HCV assessment, TAM does not have any plan to manage them. Practices to minimise and control erosion in TAM are : 1. Plant Legume Cover Crops, one year before planting time, the legume cover crop is planted for increase the soil fertility and control soil erosion. Monthly report of December 2009 planting of LCC in code area 0915042 has been established in area of 44.2 ha. 2. Pruning and frond stacking. MRF (Monthly Requisition for Fund) in January 2011, reported the implementation of Prunning and Placement of Fond. In Area code 9712031, 0511024 and 0511025, the action was completed for 72.7, 26.2, and 92.5 ha respectively. 3. Road maintenance. Regular road maintenance is carried out (grading, compacting and cambering) and also ditch maintenance according to annual program. Compliance Status : Full.
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Criterion 4.4 Practices maintain the quality and availability of surface and ground water Tirta Agung POM using water from Lalam river and have permit water using, record of BOD and record of water using per ton FFB. 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 . The BOD data are submitted six-monthly in RKL/ RPL to BAPEDALDA (Regional Environmental Monitoring Body) Kabupaten Musi Banyuasin. Checks on records show that all the data are comply with regulation. To avoid the contamination of river water, TAM installing HCV area along the river banks. There are several sign boards of HCV 4.1 to warn people for not hunting and fishing and to remind workers for not applying fertilizer and pesticides to its oil palms in the riparian zones – a 50 meter belt along the river banks - and no replanting of oil palm will be done along all river banks. Due to tidal swamp characteristics of the area, subsidiary dranaige, main drainage and collection drainage is constructed to the whole of palm oil area. Subsidiary drain is constructed for water inlet and outlet of the plants, depth 0.8 m, width 1.0 m. Every 4 rows of plants have 1 subsidiary canal. The canal is connected to collection drain (2 m width, 2 m depth, every 1000 m). The collection drain is then connected with main drainage (2.5 m width, 2 m depth). Compliance Status : Full. Criterion 4.5 Pests, diseases, weeds and invasive introduced species are effectively managed using appropriate Integrated Pest Management (IPM) techniques TAM has formulated an Integrated Pest Management (IPM), practiced incorporating cultural, biological, mechanical or physical methods, by : 1. Identification of pests, diseases and weeds before it become an outbreak of maximum level 2. Introducing of beneficial plants for hosts of pests. 3. Introduction Barn Owl (Tyto alba) 4. Planting LCC 5. Frond stacking 6. Minimise use of agrochemicals. Oil Palm Leaf Eater Control includes detection, cencus, examination, treatments, evaluation, monitoring and organisation. Planting beneficial plants, such as Bunga pukul delapan (Turnera subulata) and air mata pengantin (Antigonom leptosus) to harbour predators of the crop pests. MRF (Monthly Requisition for Fund) January 2011, reported the use of benefecial plants (Antigonon leptopus, Turnera subulata) in area code 9712031 for 72.7 ha area in January 2011. 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.. Census of Tyto Alba is conducted monthly. In January 2011 there were 22 units of bird houses had been established in six division in Tirta Agung Estate and 6 units in Budi Tirta Estate. It was reported that 2 units have been occupied (4.5.1). The use of pesticides is minimise by only implementing for severe infestation in selected area and not using blanket method. Compliance Status : Full. 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. There is a List of pesticides used and pesticides stocks is listed in the”Balance Stock Agrochemical in 2008, 2009, 2010”., those can be bought for application are in accordance with the Permentan No 1/2001, WHO and Rotterdam convention, are issued and distributed to Procurement division. Only procurement division can buy and supply the matter.
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TAM has a procedure on how to apply agrochemicals, refers to 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 The application of pesticides refers to “SOP OP 5.2.2. Guide to the safe use of Pesticides “(March 2008). (4.6.1).Checks on the records of agrochemicals used found that they complied with the regulation (4.6.2 and 4.6.5). Stock of Gramoxone in 2008, 2009, and 2010 is null liter. There is no use and no new buying of gramoxone in the estates at least since 2008. Only trained persons for pesticide application technique are permitted and instructed for pesticides application in the field. Training of Pesticides Regulation and Application technique was conducted on 4-6 February 2008 in Terawas Training (South Sumatra), Regular training/ socialization 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 trainer Mr. Fizul from Department of Technology Transfer). (4.6.3.). TAM 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. Records of the hazardous wastes stored are kept properly and 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 checkups for workers involved in handling hazardous chemicals (4.6.7.). TAM 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 (4.6.8). Compliance Status : Full.
Criterion 4.7 An occupational health and safety plan is documented, effectively communicated and implemented TAM has established a safety, health and environment policy and certified SMK3 (4.7.1). The organisation structure of Panitia Pembina Keselamatan dan Kesehatan Kerja (P2K3), or Guiding Committee on Occupational Health and Safety, has been established. Explanation and 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 permanent employees and contract workers are insured under JAMSOSTEK A record of JAMSOSTEK payment installment was sighted. Employee above 55 years old have pension (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). Record of healthy employee available , the last medical check was performed on October 2010 by Man Power Ministry, Province South Sumatera . The point check were : Cholinesterase (pesticide), Audiometric ( hearing), Spirometri (lung), Work Environmental tested were : Noisy, Dusty, Vibrations at work place, Luminosity,. (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 Tirta Agung mill, Tirta Agung Estate, Budi Tirta Estate and Suka Damai Estate. The records of risk analysis are documented properly. LONSUM has developed procedures for accidents and emergency preparadness The effectiveness of this procedure is tested every year (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 including training for boiler operators, K3 regulations and legislations of the Republic of Indonesia, elevation equipment (crane / gondola). A record of work accidents was compiled by the company physician every month. (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 January 2011 found comply (4.7.8).
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There is regular first aid training and emergency drills.(4.7.9.). Records of work accidents are kept 5 years and regularly 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. Figure 2. Engine room with notification to wear PPE in noisy area (>85 db) and equipped with fire extinguisher
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 includes guidance on FFB quality standard, harvesting, fertilizaton and estate maintenance as part of good agricultural practices, and to endorse a sustainable manner in compliance with the RSPO Principles and Criteria. The training of RSPO P & C for smallholders was conducted on October 26 to 28, 2009. Compliance Status : Full.
Figure 3 Emergency drills
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Figure 4. Training for smallhoders
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 TAM has developed criteria to determinate methods to replanting oil palms in Impact of plantation and mill which is identified in AMDAL Document, AMDAL/RKL/RPL of Oil Palm Plantation and Palm Oil Mill. There is no replanting program for all 3 estates since oil palms were planted on 1996 and 1997. TAM conducted an environmental impact assessment (ANDAL) of its mill and estates operations in 2004 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 identified will be studied for mitigation. Assessment is also being carried out on the environmental management and monitoring (RKL/RPL). TAM had previously assessed its environmental impact in obtaining ISO 14001 certification (for environmental management) for its mill and estates. Six-monthly reports of RKL/RPL are submitted to BAPEDALDA (local environmental controlling body) Kabupaten Musi Banyuasin. POME (palm oil mill effluent) has been use as compos and land application only for research scale, but not yet totally implemented since TAM still don’t have permit to use POME as land application that required minimum of one year research by independent/ external institution. 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. TAM had a HCV assessment done in 2007 by AKSENTA Consulting , which has identified HCV area that cover of total area 1,041.84 ha. In Tirta Agung Estate : HCV 1.2; 4.1; 4.2; 4.3; 4.4; 5 has 246.69 ha, in Budi Tirta Estate : HCV 1.2; 4.1; 4.2; 4.4; 5; 6 has 293.79 ha and in Suka Damai Estate: HCV 1.2; 4.1; 4.2; 4.4; 5; 6 has 501.36 Ha. TAM had sent 5 participants to attend training of identification, management and monitoring program of HCV which was held by Bogor Agricultural University on August 8 -14, 2010. TAM has assigned one staff to conduct HCV monitoring for each estate. However, during audit it was found that the competency of appointed staff can’t be shown. A minor non-compliance was issued. Compliance Status : Not Compliant (See NCR T/01/02/2011).
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Criterion 5.3 Waste is reduced, recycled, re-used and disposed of in an environmentally and socially responsible manner TAM has identified all waste and pollutions sources in the mill and estates and listed them in accordance with its related procedure SOP OP “Identification of waste sources”, , The records of actual wastes in the mill and estates are documented properly (5.3.1). Suitable methods have been established to minimize the production of wastes and to minimize their environmental impacts. TAM has, in fact, already implemented waste management and disposal to avoid / reduce pollution and developed SOP OP 5.8. “Waste Management”.to obtain its ISO 14001 certification. EFB is used to mulch young palms in the field near mill in Tirta Agung Estate Division 1 and 2., 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 Semester II 2010 ( 5.3.2 and 5.3.4) showing compliance. Application of POME asnland fertilizer will be done when the permit has been issued. TAM has a licence to store the wastes in accordance with decree 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 licensed contractor/ transporter recorded in hazardous waste manifest (5.3.3). Compliance Status : Full.
Criterion 5.4 Efficiency of energy use and use of renewable energy is maximized TAM 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. Regular maintenance of mill engines ( e.g: boiler, sterilizer, BPV, Steam separator, Motor Compressor, turbine) and motor vehicles also contribute to increase energy efficiency rate. 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 The use of fire with any reason is strictly prohibited, such as activities in land preparation of new developments and replanting. TAM has a zero burning policy, and established procedure SOP OP 2.8. “Land preparation-strategies and parameter” (March 2008). Compliance Status : Full.
Criterion 5.6 Plans to reduce pollution and emissions, including greenhouse gases, are developed, implemented and monitored TAM has identified pollution and emission sources, which 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 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). TAM 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;
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tree planting is encouraged around the mill and housing complex instead, and also planting LCC to subtitute Nitrogren demand by manufactured fertilizer (5.6.3). A procedure to treat POME has been established and the records of monitoring POME are kept properly and were sighted. Organisastion has implemented ISO 14001/ enviromental management system and annually assessed by third party Certification Body and by Government for yearly monitoring of environmental aspect-impact. 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 TAM 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 TAM has an effective communication and consultation procedure with plasma smallholders and its local communities (Prosedur Komunikasi),. It has also drawn up an external communication procedure. Consultation with stakeholders is done at least yearly, and minutes of the meeting on 18 February 2011 were sighted. Adjacent estate officers are responsible for communication with the respective parties on estate activities, while the Environment and CSR Department assumes overall responsibility for communication and consultation with stakeholders and to ensure that community programs are run effectively. A list of TAM 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. 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 TAM has a complaints, grievance and dispute procedure integrated in its communication procedure. (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 TAM has developed OP Land Acquisition and Compensation. (OP2.2). 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. Based on HCV studies and ANDAL report there
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is no customary rights of local community. Inteviews with the Chief of Local Community confirmed that they have no customary rights. 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 LONSUM was established in Internal Memorandum. The salary scales and conditions of work are described in detail for all the positions of employment. TAM 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. Checks on salary list show that the lowest level of permanent employee earn Rp 984,105/ month without overtime. Interviews with some harvesting workers reveal that they can obtain Rp 1,800,000 to Rp 2,000,000 with average of 180 bunches harvested depends on difficulties of the land and age of palm. Single worker also provided with rice allowance, for single worker is 15 kg rice, which equals with Rp 5,750/ kg, it means a single worker have rice allowance equals with Rp 86,250. For head of family is 15 kg plus 9 kg for wife and 7.5 kg for each children (maximum 3 children). All TAM permanent 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. TAM has built new housing complex, 20 double dwelling units has been built in year 2010 in Budi Tirta Estate and 16 units in Tirta Agung Estate. The program will continue up to 2014 for 110 units with total area 11 ha completed with public facilities such as worship buildings (mosque, church), sport facilities (football yard, badminton yard, tennis court). The houses are permanent building and using better materials than the old ones (brick walled instead of board walled). 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 LONSUM. Scholarships to students and teachers are offered, and also book aid and learning kits under the company CSR program (6.5.3). Compliance Status : Full. Figure 5. New housing complex in Budi Tirta Estate
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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 TAM 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. However, only non-staff employees can be Union officers to obviate any conflict of interest. The Union and management of TAM negotiate the Perjanjian Kerja Bersama, or Mutual Working Agreement, every 5 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. TAM has a policy on child and female workers as stated in “Code of Conduct” 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. A policy on equal rights regardless of race, caste, national origin, religion has been established as stated in “Code of Conduct” and also socialized in agreements with suppliers/ contractors. TAM 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 LONSUM Head Office. TAM 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 TAM. Vacancies are posted on notice boards in the mill / estates, and also advertised in the local newspaper or in website stated equal job vacancies for men and women for position Mill Assistant trainee, Transport Machinery Assistant, Field Assistant Trainee. 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 TAM has established a policy on prevention of sexual harassment and protection of reproductive rights of its female workers as stated in “Code of Conduct “. The policy was socialized to the workers (6.9.1). 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 as stated in Perjanjian Kerja Bersama (PKB) or Mutual Working Agreement in Article 13. (6.9.2).
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Internal Memorandum from Manager Unit for example in Tirta Agung Estate, Ref : No.165/TAEM/XI/2008 dated on 2 November 2008, stated that pregnant and breastfeeding women can’t not employed related with agrochemicals/ pesticides. Checks in the field concluded no pregnant and breast-feeding women working with agrochemicals (6.9.3, 6.9.4 and 6.9.5). Interviews with female workers confirmed that they didn’t really understood the policy about sexual harassment since the word “sexual harassment” was not clearly defined in “Code of Conduct” that had been substituted by subdued word “ indecent manners” and they didn’t knew the grievance mechanism for complaints. A minor Noncorformity has been raised. Compliance Status : Not Compliant, (see NCR No.T02/2011).
Criterion 6.10 Growers and mill deal fairly and transparently with smallholders and other local businesses. TAM has fair, legal and transparent agreements with its suppliers / contractors and plasma smallholders/ outgrowers. 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). There are three different schemes FFB supply in TAM, i.e : independent scheme in Tirta Agung Estate (by PT. Banyu Kahuripan and PT. Mentari Subur Abadi), plasma turn into cooperative body KUD Teratai Biru in Suka Damai Estate, and full owned-company supply in Budi Tirta Estate. 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 KUD, or of the plasma smallholders themselves. Checks on the FFB price on February 21, 2011 for periode 16-28 February 2011 the price range between Rp 1,385 – Rp 1,882, it depends on age of palm (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. Interviews with the contractors and some plasma smallholders found no grievance about the price (6.10.3). 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 TAM is committed to support sustainable development of the local communities through its Corporate Social Responsibility/ Community Development programs which are presented in its Stakeholder meeting. Identification of projects is based on community needs, the priorities of each mill / estates and the budget available. The CSR/ CD programs in 2010-2011 are : Education: Repairs and building of 3 schools in Tirta Agung, religious school in Mangsang, elementary school Artha Kencana Donation/ additional salary for six religious teachers Scholarships for seven students (3 elementary school students, 3 junior high school students and 1 senior high school student) Training for integrated Kindergarten (TK Semai Benih Bangsa and TK Tunas karya in Riam Indah) Computers for Elementary School and Village Office in Suka Damai. Dormitory for religious school Darul Hikmah Simpang Tungkal Futsal yard for Senior High School SMAN 2 Peninggalan
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Religious program: Gifts/ packages for moslem community on Ied Fitri (only for needy). Gifts/ packages for christian community on Christmas (only for needy). Others program Bazaar/ cheap market for local community Training to make snacks/ cakes for women community around mill/ estates, in order they can earn money by selling snacks/ cakes. Donation/ aid Heavy equipments aid to repair Mangsang Village road. Independence day of Republic of Indonesia in Mangsang Village, Bero Jaya Village and Beji Mulyo Village. Anniversary of Security Division in Kapolres Musi Banyuasin. Bridge Tamarum repair in Mangsang Village. Clean water supply for SMAN Peninggalan. Provide buses for transportation for SMPN Bayung Lencir and SMAN 2 Peninggalan. Donation for others stakeholders. Health Mass circumcision for moslem boys. Posyandu (integrated health services) for infants and pregnant/ breastfeeding women every month. Compliance Status: Full. Figure 6. CSR programs : computers for school
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Figure 7 : Posyandu activities for infants and pregnant / breast-feeding mothers
Criterion 7.1 A comprehensive and participatory independent social and environmental impact assessment is undertaken prior to establishing new plantings or operations,or expanding existing ones, and the results incorporated into planning, management and operations New planting activity has been established in 2005-2009 in total area of 3,367 ha. The new planting activity did not required new AMDAL since the area still located in land title use approved AMDAL. In Land Use Title “Sertifikat HGU No. 11/2003 Propinsi Sumatra Selatan” it was stated that the land use for plantation The report of RKL/ RPL stated that the new planting activity has fulfilled environmental requirement. Monitoring of RKL/ RPL in Semester I and II 2010 reported evaluation against soil erosion, potencial of fire, social impact, flora and fauna, etc.
Criterion 7.2 Soil surveys and topographic information are used for site planning in the establishment of new plantings, and the results are incorporated into plans and operations.
TAM has developed SOP OP Soil survey and land evaluation (April 2008). Soil survey was conducted by Mr. Tohirudin, “Preliminary Soil Survey In Budi Tirta Estate, Musi Banyuasin - South Sumatra in 2004 (from BLRS Medan). The AMDAL also includes a chapter on soils. Criterion 7.3 New plantings since November 2005, have not replaced primary forest or any area required to maintain or enhance one or more High Conservation Values
In National Forest Inventory Project Maps in 1999 by Forestry and Plantation Planology, Deparment of Forestry and Plantation, it show that the estate location is classified as“ BUKAN HUTAN” or “Not Forest”. Identification and assessment of HCV’s area in Budi Tirta Estate has been conducted by AKSENTA in 2007. LONSUM has developed procedure to design program to manage and monitor HCV area SOP HCV OP 5.10. Monitoring HCV area was conducted annually. Records of monitoring HCV is available and well maintained. Checks on site the were HCV sign boards in Division 3 (HCV 4.2), Division 4 (HCV 4.2) and Division 2 on Jetty Wancik and Jetty Ondok area (HCV 1.1). Compliance Status : Full.
Criterion 7.4 Extensive planting on steep terrain, and/or on marginal and fragile soils, is avoided.
No steep terrain is found in the estate. The estate laid on 0 - 40 m above sea level, in tidal swamp area. (Topographic Map Of Tirta Agung Estate, Budi Tirta Estate, Suka Damai Estate 1:75.000, 23 June 2008). Compliance Status : Full. Criterion 7.5
No new plantings are established on local peoples’ land without their free, prior and informed consent, dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions. Local/indigeneous people are not found in the new planting area. Compliance Status : Full.
Criterion 7.6 Local people are compensated for any agreed land acquisitions and relinquishment of rights, subject to their free, prior and informed consent and negotiated agreement.
TAM has developed SOP OP 2.2 Land Acquisition Procedures as a guidance for land acquiition and compensation. Checks on records noted that there was land compensation in 1997-1999 and 20052007. The land owner representative Mr. M. Nasir bin Yusuf has requested land measurement on March 3, 2005 acknowledged by Chief of Village Mr.Tomi Madowi. Land measurement was carried out on March 4, 2005, witnessed by 4 villagers, officially recognized by Estate Coordinator, acknowledged by Chief of Village and Camat (Head of District Bayung Lencir, Mr. Ichwanudin). The land owner requested the compensation price is Rp 2,000,000/ ha and additional administration fee 10% on March 5,2005. Records of payment on March 10, 2005 noted that the payment has been fully installed on March 9, 2005. Compliance Status : Full.
Criterion 7.7
Use of fire in the preparation of new plantings is avoided other than in specific situations, as identified in the ASEAN guidelines or other regional best practice. The use of fire with any reason is strictly prohibited, such as activities in land preparation of new developments and replanting as LONSUM has developed procedures and policy : Zero burning for new planting or replanting Land preparation-strategies and parameters (SOP OP 2.8) Compliance Status : Full.
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. TAM has committed to a process of continuous improvement by adopting the RSPO P & C and getting certified for its integrated management system – by obtaining EMS ISO 14001 for mill and all three estates and SMK3 for Tirta Agung POM and Tirta Agung Estate. 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 especially paraquat, increasing FFB yields and OER. Compliance Status : Full.
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3.2 Detailed Non-Conformity Report, Corrective Actions Taken and Auditors’ Conclusions
Non Conformity Report – T01.02/11 Date of issue
25.02.2011
NCR issued by
: Wieke Savitri
Location
PT. PP London Sumatra Tbk (Musi Banyuasin Region) Tirta Agung POM, Tirta Agung Estate, Budi Tirta Estate, and Suka Damai Estate
Discussed with
: Managers and staff
RSPO – Criterion : 5.2 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/Objective Evidence: The competency of appointed staff to monitor HCV can not be shown. Personil yang ditunjuk untuk melakukan monitoring HCV tidak dapat ditunjukkan bukti kompetensinya.
Classification
Major
Minor
Date of implementation: April 2011 Environment & CSR Dept is to do HCV Refreshing Training for the appointed HCV officers in Estate (Relevant Field Assistants and workers). Environment & CSR Dept akan melaksanakan Pelatihan Ulang tentang HCV kepada para petugas HCV yang ditunjuk oleh Estate (Asisten Lapangan dan Petugas yang relevan)
Corrective Action Taken:
1.
2.
The Estates Managers are to assign formally the Field Assistants and workers for monitoring HCV. Manager Kebun akan menunjuk Asisten Lapangan dan Pekerja yang bertugas untuk Pemantauan HCV secara formal.
Auditee sign:
Adi Bastomi Head of Environment & CSR Coord Department
Bryan Dyer Managing Director Operations
Auditor Comments: Corrective action taken by the organization for the documentation submitted has been verified and accepted. The training has been conducted on 31.03.2011. 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
Appropriate action taken Corrective action in compliance with the requirement
Date of verification: April 25, 2011
Auditor(s) sign:
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Non Conformity Report – T02.02/11 Date of issue
25.02.2011
NCR issued by
: Wieke Savitri
Location
PT. PP London Sumatra Tbk (Musi Banyuasin Region) Tirta Agung POM, Tirta Agung Estate, Budi Tirta Estate, and Suka Damai Estate
Discussed with
: Managers and staff
RSPO – 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
Description of Finding/Objective Evidence: Specific grievance mechanism is not available, if there is any sexual harassment occurs. Company policy is not specific and socialization is not sufficient to all women workers. Classification
Major
Minor
Date of implementation: April 2011 Environment & CSR Department is to update the EMS-P 05 (Communications) by covering specific grievance mechanism if sexual harassment occurs. Environment & CSR Department akan memperbaharui EMS-P 05 (Komunikasi) mencakup mekanisme keluhan khusus jika terjadi pelecehan seksual.
Corrective Action Taken:
1.
2.
Environment & CSR Department and all relevant Estates/Mill Managers are to socialize the updated EMS-P 05 to staffs and workers. Environment & CSR Department dan Manager Kebun serta Pabrik yang relevan akan mensosialisasikan EMS-P 05 yang sudah diperbaharui kepada staff dan pekerja
Auditee sign:
Adi Bastomi Head of Environment & CSR Coord Department
Bryan Dyer Managing Director Operations
Auditor Comments: Corrective action taken by the organization for the documentation submitted has been verified and accepted. Internal Memorandum dated on 01.04.2011. The refreshing training has been conducted on 31.03.2011. 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
Appropriate action taken Corrective action in compliance with the requirement
Date of verification: April 25, 2011
Auditor(s) sign:
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Table 7: Summary of findings by RSPO Criterion
Audit type Criterion Audited 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 5.4 5.5 5.6
Certification Assessment
Audit type
Complia Major nce NC Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes No Yes Yes Yes Yes
Complia Major nce NC 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 No 6.10 Yes 6.11 Yes 7.1 Yes 7.2 Yes 7.3 Yes 7.4 Yes 7.5 Yes 7.7 Yes 7.7 Yes 8.1 Yes Total of Nonconformities 0
Minor NC
1
Total NC
1
Certification Assessment
Criterion Audited
Minor NC
Total NC
1
1
2
2
3.3.1. Noteworthy observations −
There is no land conflict in this area, the relationship between TAM and local communities and other stakeholders is in harmony.
−
The mill and estates are certified to EMS ISO 14001 and SMK3, making it easier for TAM to progress to RSPO Certification;
−
The use of gramoxone (paraquat) is null since 2008;
−
TAM maintains a 50 m riparian strip along its rivers as conservation area;
−
TAM has a zero burning policy for pollution control in its estates;
−
EFB used for mulching young palms, besides, treated POME will be applied to the fields as fertilizer after the permit had been obtained;
−
CSR programs have improved sustainable development of the local communities.
3.3.2. Some Recommendations for Improvement in the Mill and Estates: −
The mill and estates have documented safety guidelines and working instructions as well as safety monitoring in accordance with ISO 14001, SMK3 implementation, however, the identification of aspect and impact should consider abnormal start up and abnormal shut down condition.
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−
The RSPO management of TAM has set a high priority on protection of all HCV’s area, all HCV area has been identified and demarcated by sign board according to HCV assessement recommendation, such as : Division 3 (HCV 4.2), Division 4 (HCV 4.2) and Division 2 on Jetty Wancik and Jetty Ondok area (HCV 1.1), however, there were some excessive sign boards found misplaced, TAM took action by removing unnecesssary sign boards immedeately.
−
A more detailed map of HCV 4.1 of Lalam river should be established.
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 TAM 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 February 18, 2011 by TAM to obtain feedback - positive or negative – on its RSPO Certification Assessment. The minutes were taken along with TAM responses to the queries made. Most of the stakeholder comments on RSPO certification were positive, and support RSPO certification for TAM, under which were usually requests for help. TUV NORD led Public consultation meeting with stakeholders on February 24, 2011. The comments are given below.
Government Ridwan Hadi ( Village Secretary, Suka Damai) There has been clear boundary between TAM’s oil palm estates and rubber estates of local communities, it prevents the dispute or conflict regarding claim against land. We suggest TAM gives priority of job vacation for local community instead of outsiders, the new outsider workers shall be reported to Suka Damai Village Officer. TAM Response We will reported the new outsider workers to Suka Damai Village Officers. Local Communities Mr. Misoha Effendy (Tokoh Suka Damai Village) We support TAM for RSPO certification, to maintain mutual relationship between TAM and the community, the welfare of religious teachers in Suka Damai should be taken into account. TAM Response Religious teacher will be donated @Rp 500.000,- /month for six people in Sukadamai. Mr. Maryono (Youth organisation leader, Javanese ethnicity, Mangsang Village) We have been living in Mangsang Village since 1986, as long as we know, there is no significant conflict between the origin community (Musi Banyuasin) and outsiders i.e: Javanese, Sundanese, Bataks, nor between TAM and local communities, the local community has been blended in harmony. TAM has provided job for the young people around the mill and estates, we hope the mutual relationship should be maintained. TAM Response We will maintain the good relationship.
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Mr. Burhanudin (Mangsang Village Leader/ Tokoh adat). TAM has contributed to local communities in Mangsang Village, i.e : education falicities and teacher extra salary. We hope the donation can be maintained or improved. TAM Response We will maintain the donation and improve it depends on priority. Mr. Lukman Husin (Chief of Dusun I Mangsang, Mangsang Village) Our dusun located between Tirta Agung Estate and Budi Tirta Estate, we need the donation for religious school (madrasah) in Mangsang Village can be accomplished. TAM Response Donation for Religious school will be given away as it has been allocated in CSR program this year. Mr. Ahmad Alim (Mangsang Village Leader) We need the road in Mangsang Village to be repaired TAM Response Please submit the proposal in accordance with TAM’s procedure.
Security Officer/ Police Mr. AIPTU Charles We need additional security officers in Budi Tirta Estate, the palm fruit stealing often occurs, we can’t cover all area. TAM Response We will arrange it with local police station for additional security officers.
Worker Union Mr. Aidi Umar (SPSI Suka Damai) We have 186 members of worker union in Suka Damai unit. TAM provides JAMSOSTEK and pension for permanent employees, except for piece-rate workers. TAM should pay attention for piece-rate workers. TAM Response Piece-rate workers don’t have JAMSOSTEK insurance, however, if they are ill or having an accident during working time, they are provided with medical treatment covered by TAM. Mr. Reyza Fath (Ambulance driver in Tirta Agung) I have been an ambulance driver in TAM for six years, however my status still a piece-rate workers with working time from 07.00 – 14.00, need to be promoted as a permanent worker. TAM Response We will propose to promote Mr. Reyza Fath as a permanent worker. Female Representative Mrs. Sukawati (Treasury Officer of SPSI) We have not heard about gender committee, we don’t really understand the definition of “indecent manners” . TAM Response We have Communication Procedure regarding sexual harrasment and have socialized the procedures to the employees. Assessors verification The communication procedure didn’t explain specific grievance mechanism if sexual harrashment occurs, the socialization didn’t cover all female employees.
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Contractors/ suppliers Mr. Hong Tjin (PT. SI) We hope the relationship can be maintained and our contract can be extended. TAM Response We will review to extend the contract based on evaluation result. Mr. M. Jemmi (CV. Dewa Sawit Mandiri) We have built double dwelling houses for new housing complex in TAM, we suggest the road edge in housing complex should be repaired. TAM Response We will repaired the road edge based on budget.
3.4.2. Attendance list for Public Consultation Meeting on February 24, 2011. No 1 2 3 4 5 6 7
Name Misoha Effendy Hong Tjin Riduan Hadi Aidi Umar AIPTU Charles Lubis Reyza M. Jimmi
Unit/ Position Suka Damai Village PT. SI Village Secretary Suka Damai SPSI Suka Damai PAM Polsek Ambulance Driver CV. Dewa Sawit Mandiri
8
Maryono
Mangsang Village
9 10 11
Ahmad Alim Burhanudin Lukman Husin
Mangsang Village Ketua Adat Kepala Dusun Mangsang
12
Sukawati
Bendahara SPSI
14 15 16
Bambang Dwi Laksono Sudarmadji Wieke Savitri Anita Masduki
17
Herdhata Agusta
13
Remarks Local Community Contractors/ Suppliers Government Worker Union Police/ MUSPIKA) Piece-rate workers Contractors/ Suppliers Local Community/ Youth leader Local Community Local Community Local Community Woman representative/ Worker union
Head of ECSR
LONSUM
Assessor Assessor Assessor (trainee)
TUV NORD TUV NORD TUV NORD
Expert
TUV NORD
Public Summary Report PT. PP London Sumatra Tbk_Tirta Agung Mill and Supply base
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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
Medan, May.2011
Signed for and on behalf of PT. PP London Sumatra Tbk Head of Environment and CSR Managing Director Operations Coordination
Adi Bastomi
Bryan Dyer
Signed for and on behalf of PT. TÜV NORD Indonesia – System Certification Management Jakarta, May.2011
Auditor
: Wieke Savitri
Public Summary Report PT.PP London Sumatra Tbk _Tirta Agung Mill and Supply base
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Annex A. Map of PT. PP London Sumatra Tbk- Tirta Agung Mill and Supply base (Tirta Agung POM & Estate, Budi Tirta Estate, Suka Damai Damai Estate)
Public Summary Report PT.PP London Sumatra Tbk _Tirta Agung Mill and Supply base
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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. PP London Sumatra Tbk Head Office:
Jl. Ahmad Yani No. 2 PO Box 1154, Medan 20111, North Sumatra Indonesia
Tirta Agung Palm Oil Mill Mill Location Kabupaten Musi Banyuasin, South Sumatera
GPS location Longitude (E) Latitude (S) E-104◦ 1’ 57”
S-2◦ 11’ 11”
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
25,327 t / year
7,233 t / year
Certificate Registration No: TNI –RSPO 010.2011 Audit Report No. SPO-ID10005 Issued date of Certificate : RSPO approval date Valid 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.PP London Sumatra Tbk _Tirta Agung Mill and Supply base
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Annex to Certificate – RSPO (Supply Base) Certificate Registration No: TNI-RSPO 010.2011 The scope of certification of Mill and Supply base cover is
Estate
Tirta Agung Estate Budi Tirta Estate Suka Damai Estate
Location
Kabupaten Musi Banyuasin, South Sumatera Kabupaten Musi Banyuasin, South Sumatera Kabupaten Musi Banyuasin, South Sumatera
FFB Production (t)
GPS Coordinates Longitude (E)
Latitude (S)
53,831.04
E-104◦ 00’ 55”
S-2◦ 11’ 39”
18,543.00
E-103◦ 58’ 55”
S-2◦ 8’ 56”
43,397.38
E-103◦ 59’ 56”
S-2◦ 22’10’’
Public Summary Report PT.PP London Sumatra Tbk _Tirta Agung Mill and Supply base
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Annex C : Certification Assessment Plan Client:
PT. PP London Sumatra Tbk
Address:
Jl. Ahmad Yani No. 2 Medan, Sumatera Utara - Indonesia
MR Name, Pos.:
Mr. Adi Bastomi
Number of Mills:
1
Number of estate(s):
3
Order No.
-
Business No.
-
Mill(s), Location(s)
Estate(s), Location(s)
Tirta Agung POM, Kab. Musi Banyuasin, Sumatera Selatan;
1. Tirta Agung Estate, Kab. Musi Banyuasin, Sumatera Selatan 2. Budi Tirta Estate , Kab. Musi Banyuasin, Sumatera Selatan 3. Suka Damai Estate, Kab. Musi Banyuaasin, Sumatera Selatan
Standard:
RSPO P&C (Principles & Criteria) May 2008; INA-NIWG
Type of audit: Certification Audit
Audit date:
21-25.02.2011
Lead Auditor: Sudarmadji (SD)
Trainee / Expert: Trainee/ Expert Audit days on-site:
Dr. Herdhata Agusta (HA) Anita Masduki (AM) 4 days
Auditor(s):
Wieke Savitri (WS) 1)
Date / Time
Site / Shift / Organizational Unit
Auditor (Abbrev.)
Interview2) partner
Requirements
Day – 0: 21.02.2011 Arrival in Palembang and traveling to site location Day – 1: 22.02.2011 AMA Muba Office 08:00-08:15
08:15 – 12:00
Site: AMA Office Opening meeting
Lonsum Operation
SD, WS, AM, HA
Introduction team and fine tune audit plan (if necessary)
HA, WS, SD, RSPO team AM
- 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
12:00 – 13:30 Break and lunch SD & AM to Tirta Agung POM
13:30 – 17:00
Tirta Agung POM : Mill Operations
SD, AM
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 1
Public Summary Report PT.PP London Sumatra Tbk _Tirta Agung Mill and Supply base
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Day – 1: 22.02.2011 HA & WS to Tirta Agung Estate 12:00 – 13:30 Break and lunch : Tirta Agung Estate -
Tirta Agung Estate: Estate Operations
13:30 – 17:00
HA, WS
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 1)
Date / Time
Site / Shift / Organizational Unit
Auditor (Abbrev.)
Interview2) partner
Requirements
Days – 2: 23.02.2011 HA & WS to Budi Tirta Estate
09:00-12:00
Sites: Budi Tirta Estate Estate opertaions
HA & WS
RSPO team
-
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
12:00 -13:30 Break and lunch
13:30 – 17:00
Estate operations
HA & WS
RSPO team Continue
17:00: End of day assessments 2 Days – 3: 23.02.2011 Suka Damai Estate
09:00-12:00
Sites: Suka Damai Estate
SD & AM
RSPO team
-
Public Summary Report PT.PP London Sumatra Tbk _Tirta Agung Mill and Supply base
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
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1)
Date / Time
Site / Shift / Organizational Unit
Auditor (Abbrev.)
Interview2) partner
Requirements
Days – 2: 23.02.2011 Suka Damai Estate 12:00 -13:30 Break and lunch 13:30 – 17:00
Estate operations
SD & AM
RSPO team Continue
17:00 End of day assessment 2 1)
Date / Time
Site / Shift / Organizational Unit
Auditor (Abbrev.)
Interview2) partner
Requirements
Days – 3: 30.12.2010 Tirta Agung POM & Estate Office
08.00 -11.00
Tirta Agung POM Office SD, WS, HA, RSPO team - Public Consultation AM - Involved personnel and responsibilities - Socio economic impacts on the local population
11.00-12.00
Tirta Agung POM Office SD, WS, HA, RSPO team - Response by LONSUM for Public AM Consultation Break and lunch Travelling to Palembang
12.00 – 13.00 17.00
End of assessment day 3 1)
Date / Time
Site / Shift / Organizational Unit
Auditor (Abbrev.)
Interview2) partner
Requirements
Days – 4: 2502.2011 Lonsum Branch Office Palembang Palembang Office: 09.00 -11.00
11.00
Closing meeting and presentation of audit finding
SD, WS, HA, RSPO team AM
-
End of Initial Assessment RSPO Back to Jakarta
Public Summary Report PT.PP London Sumatra Tbk _Tirta Agung Mill and Supply base
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