Making our world safer

RSPO CERTIFICATION ASSESSMENT PUBLIC SUMMARY REPORT Date of assessment 25 to 29.10.2010

PT. TUVNORD Indonesia System Certification Management Has assessed PT. PERKEBUNAN NUSANTARA IV (PERSERO)

Palm Oil Mill and Supply Base for Compliance to RSPO Principles and Criteria for Sustainable Palm Oil Production

Pabatu Mill, Dolok Ilir Mill, Pulu Raja Mill and Supply Base CPO 80,797.95 t & PK 19,359.05 t

Report Prepared by Hasnop Putra Email: [email protected]

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TABLE OF CONTENTS Summary Abbreviations Used 1. SCOPE OF THE CERTIFICATION ASSESSMENT 1.1 National Interpretation Used 1.2 Scope of Certification 1.3 Location 1.4 1. Description of Supply Base 2. Company Background and Ownership History 1.5 Date of Planting and Replanting Cycles 1.6 Other Certifications Held 1.7 Time-Bound Plan for Other Certification Units 1.8 Area of Plantation 1.9 Approximate Tonnages Certified 1.10 Date Certification Issued and Scope of Certificate 2. ASSESSMENT PROCESS 2.1 Certification Body 2.2 Assessment Methodology 2.3 Certification assessment checklist of principles and criteria 2.4 Review of documents 2.5 Onsite and Follow-up interviews 2.6 Resolution of Corrective action 2.7 Qualification of the lead assessor and assessment team 2.8 Outline of how stakeholders interviewed 2.9 List of stakeholders 2.10 Questions asked during interview of stakeholders 2.11 Date of next surveillance visit 3.

3 3 3 3 3 3 4 5 5 5 5 7 7 8 8 8 8 9 9 9

10 10 12 12 15 15

ASSESSMENT FINDINGS 3.1 Summary of findings 3.2 Detailed Non-Conformity Report, Corrective Action taken and Auditor’s Conclusion 3.3 1.Noteworthy positive components 3.3 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 of stakeholders’ meeting 3.5 Certified organization’s acknowledgement of internal responsibility 3.6 Formal sign-off of assessment findings ANNEX A Figure Maps of PTPN IV Mills and Estates B Draft of RSPO Certificate C Certification Assessment Plan

16 16 29 34 35 35 36 37 36 39 42 48

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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. Perkebunan Nusantara IV (PTPN IV) 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. Perkebunan Nusantara IV (PTPN IV) be approved as a producer of RSPO Certified Sustainable Palm Oil. The scope of this certification assessment comprises Pabatu, Dolok Ilir and Pulu Raja Mills producing a total 80,797.95 t/year CPO and 19,359.05 t/year PK with the following breakdown :  Pabatu Dolok Ilir Pulu Raja

= 23,805 t/year CPO and 4,842 t/year PK = 36,016 t/year CPO and 9,966 t/year PK = 20,976 t/year CPO and 4,551 t/year PK

(Data for January-December 2009) Abbreviations Used AMDAL ANDAL Bapedalda B3 BOD CDM COD CPO CSR DAR Deperindag RI EFB FFA FFB GPS Ha HCV HGU HSE IPM JAMSOSTEK KAN KLH KUD LCC LD50 LSM MSDS Permenaker RI PK

Analisis Mengenai Dampak Lingkungan (Environmental Impact Assessment Report) Analisis Dampak Lingkungan Badan Pengendalian Dampak Lingkungan Daerah (Regional Environmental Impact Control Agency ) Bahan Berbahaya dan Beracun (Toxic and Hazardous Materials) Biological Oxygen Demand Clean Development Mechanism (Mekanisme Pembangunan Bersih ) Chemical Oxygen Demand Crude Palm Oil Corporate Social Responsibility Deutscher Akkreditierungs Rat (German Accreditation Body) Departemen Perindustrian dan Perdagangan (Department of Industry and Commerce of the Republic of Indonesia) Empty Fruit Bunch(es) Free Fatty Acid(s) Fresh Fruit Bunch(es) Global Positioning System Hectare High Conservation Value Hak Guna Usaha (Land Use Permit) Health Safety Environment (Kesehatan, Keselamatan dan Lingkungan) Integrated Pest Management Jaminan Sosial Tenaga Kerja (Labour Social Insurance) Komite Akreditasi Nasional (The Indonesian Accreditation Committee) Kementrian Lingkungan Hidup (Ministry of Environment) Koperasi Unit Desa (Village Cooperative Unit) Legume Cover Crop Lethal Dosage (50% mortality of tested population) Lembaga Swadaya Masyarakat (NGO(s)) Material Safety Data Sheet(s) Peraturan Menteri Tenaga Kerja (Regulation(s) of the Ministry of Labour of Republic of Indonesia) Palm Kernel

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PKO PMA POME PPE

Palm Kernel Oil Penanaman Modal Asing (Foreign Investment) Palm Oil Mill Effluent Personal Protective Equipment Rencana Kelola Lingkungan dan Rencana Pemantauan Lingkungan (Environmental Management Plan – Environmental Monitoring Plan) Sistim Manajemen – Keselamatan dan Kesehatan Kerja (Management System of Occupational Safety and Health) PT. Perkebunan Nusantara IV Standard Operating Procedure(s) Serikat Pekerja Seluruh Indonesia (Indonesian Labour Union) PT. TÜV NORD Indonesia Upaya Kelola Lingkungan/Upaya Pemantauan Lingkungan (Environmental Management Efforts and Environmental Monitoring Efforts)

RKL-RPL SMK3 PTPN IV SOP SPSI TNI UKL/UPL

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 Mills and the supply base of FFB. 1.2 Scope of Certification The scope of certification is the production from 3 (three) mills supplied by 3 (three) companyowned plantations, viz., Pabatu Mill by Pabatu Estate, Dolok Ilir Mill by Dolok Ilir Estate and Pulu Raja Mill by Pulu Raja Estate. There are other FFB supplied to the mills in January – December 2009 by independent farmers through contractors but they are not included in the claimed certification. 1.3 Locations PTPN IV is offering 3 (three) mills and 3 (three) plantations in the Province of North Sumatra, Indonesia for certification. Independent farmers, surround the three mills. The locations of the mills and plantations are shown in Figures A-1, A-2 and A-3 with their GPS coordinates (The readings for the estates are their offices)taken from Citra Landsystem Report, Peta Landunit Puslittanak Table 1: Mill and Estate GPS Coordinates for PTPN IV (North Sumatra) (The coordinates for the estates are for their offices)

GPS coordinates Code PABM PABE DOIM DOIE PURM PURE

Unit Pabatu Mill

Location

Kabupaten Serdang Bedagai, North Sumatra Pabatu Estate Kabupaten Serdang Bedagai, North Sumatra Dolok Ilir Mill Kabupaten Simalungun, North Sumatra Dolok Ilir Estate Kabupaten Simalungun, North Sumatra Pulu Raja Mill Kabupaten Asahan, North Sumatra Pulu Raja Estate Kabupaten Asahan, North Sumatra

Longitude (E)

Latitude (N)

99º 06 ′ 38.4 ′′

03º 17 ′ 17.04′′

99º 07 ′ 16.25 “

03º 18 ′ 00 ′′

99º 09 ′ 42.13 ′′ 99º 10 ′ 58.86 ′′ 99º 37 ′ 21.06′′ 99º 40 ′00”

03º 07 ′ 20.27′′ 03º 13 ′ 44.15 ′′ 02º 41′ 47.20′′ 02º 42 ′ 58.28 ′′

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1.4.1. Description of Supply Base FFB for the mills are sourced from 3 (three) company-owned estates and independent farmers. In calendar year 2009, independent farmers supplied 56,548 t FFB to Pabatu Mill (37.12% of its total intake), 8,824 t to Dolok Ilir Mill (5.51%) and 38,345 t (30.38%) to Pulu Raja Mill. The FFB processed from estates and independent farmers by collecting contractors are given in Table 2. Table 2: Sources of FFB processed by mills (January – December 2009)

Mill

Estate (t)

Pabatu Dolok Ilir Pulu Raja Total

Collecting contractor (t)

95,776 151,263 87,852 334,892

56,548 8,824 38,345 103,717

Total FFB (t)

152,327 160,087 126,197 438,609

% from Collecting contractor 37.12 5.51 30.38 23.65

Collecting contractors for PTPN IV : Contractor CV. Mas CV. Justin/ Independent farmer CV. Wira Andalan Mandiri UD. Buana Raya Abadi UD. Makmur Raya UD. Bertuah Ganda CV. Perintis UD. Bumi Putra

Contact Edi Syahputra Titin Indrawati Iwan Simanjuntak Sugiyanto Wibowo Salivan Siahaan Ramli RS. Parulian Panjaitan Suherly

PTPN IV does not have direct daily dealings with the independent farmers, the independent farmers sell their FFB indirectly through collecting contractors to PTPN IV due to practical reason. There is a procedure selection and evaluation of suppliers developed by Head Office that has to be implemented in all PTPN IV mills and estates, which required every supplier deal with PTPN IV shall be in the form of “Badan Usaha” (corporation) or “Badan Hukum” (legal entity), such as CV, PT or Cooperative body and shall has a NPWP (Nomor Pokok Wajib Pajak) or registered tax number. Usually small independent farmers don’t have NPWP and not familiar with all administrative procedure requirements, and independent farmers around PTPN IV neither establish cooperative body. They prefer sell their FFB to collecting contractor with reasonable price, since they know the FFB will be purchased by PTPN IV. The collecting contractor still obtain profit since FFB price from PTPN IV usually higher than other private mills in the vicinity. Some bigger independent farmers also double up as collecting contractors, which is fine as long as they can satisfy the requirements demanded of them. Some local community/ villagers actually are independent farmers too. There is nevertheless a cordial relationship and frequent contact in regular meetings with them and other stakeholders, in accordance with external communication procedure in the SM-K3 Code of Conduct or “Prosedur Integrasi Konsultasi dan Komunikasi”. PTPN IV contribute to sustainable development of independent farmers such as provide skills training in agricultural practices to become good oil palm growers, financial loans for pedestrian tractors, thereby improving their economic well-being, and enhancing their role in the local economy. PTPN IV is committed to develop and fully support the independent farmers to be able to manage their plots in a sustainable manner in compliance with the RSPO Principles and Criteria. However, their production independent farmer is not within the scope of RSPO certification at this time. Therefore, Criterion 7 of the RSPO National Interpretation of the Republic of Indonesia (RSPO INANIWG) is not applicable.

1.4.2. Company Background and Ownership History

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PT Perkebunan Nusantara IV (Persero) or PTPN IV was established in 1911 as a Dutch Company. It was taken over by the Indonesian Government in 1957 and renamed PT Perkebunan Nusantara IV on 14 February 1996 under “Peraturan Pemerintah No.10 tahun 1996” and by Act “No.38 11 March 1996” and by the Ministry of Justice of Republic of Indonesia Regulation “No. C28333.HT.01.01 tahun 1996” on August 6, 1996. 1.5 Date of Planting and Replanting Cycles In general, oil palm is replanted after 25 years, but may be shorter / longer depending on the economics and status of the crop. The age profile of the palms is shown in Table 3. Table 3: Age profile of PTPN IV oil palms

Estate Pabatu Dolok Ilir Pulu Raja Pulu Raja

Year Planted 1987 1987 1986 1987

Expected year for replanting

2014 2014 2013 2014

Area (ha) 124 374 143 189

1.6 Other Certifications Held PTPN IV has been certified - to ISO 14001 and ISO 9001 by TUV NORD for its integrated management system in all its three mills and three estates; - by The Ministry of Labor of the Republic of Indonesia for having implemented SMK3 based on “Permenaker No. 5 Tahun 2005”. Organizational Information/Contact Person All information in respect to this certification assessment for RSPO may be addressed to: Contact Person Mr. M.A Ghani Position Kabag. Perencanaan Organization PT. Perkebunan Nusantara IV (Persero) name Address Jl. Letjen Suprapto No.2 Post code, city 20151, Medan Country Indonesia Telephone +62 61 4154666 Fax +62-4573117 Email [email protected]

1.7 Time-Bound Plan for Other Certification Units All the oil palm estates of PTPN IV are in North Sumatra, with none elsewhere. The estates are listed in Table 4. In addition, PTPN IV is committed to fully support the independent farmers become sustainable within the Indonesian National Interpretation of the RSPO P & C in its social responsibility to community development. PTPN IV has a program for every of its palm oil production units to be RSPO certified. The timebound plan for doing so is set out in the table below:

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Table 4: Time-bound plan for RSPO certification of all PTPN IV mills / estates Estate

Bah. Jambi Estate Tinjowan Estate Mayang Estate Laras Estate Pasir Mandoge Estate Bukit Lima Estate Dolok Sinumbah Estate Padang Matinggi Estate Ajamu Estate Meranti Paham Estate Sawit Langkat Estate Tanah Itam Ulu Estate Gunung Bayu Estate Sungai Kopas Estate Marihat Estate Balimbingan Estate Adolina Estate Air Batu Estate Berangir Estate Sosa Estate Marjandi Estate Bah. Birung Ulu Estate Tonduhan Estate Aek Nauli Estate Proyek Panai Jaya Proyek Timur Proyek Balap Panai Jaya

Location

Kab. Simalungun, Sumatera Utara Kab. Simalungun, Sumatera Utara Kab. Simalungun, Sumatera Utara Kab. Simalungun, Sumatera Utara Kab. Asahan, Sumatera Utara Kab. Simalungun, Sumatera Utara Kab. Simalungun, Sumatera Utara Kab. Simalungun, Sumatera Utara Kab. Labuhan Batu, Sumatera Utara Kab. Labuhan Batu, Sumatera Utara Kab. Langkat, Sumatera Utara Kab. Batubara, Sumatera Utara Kab. Simalungun, Sumatera Utara Kab. Asahan, Sumatera Utara Kab. Simalungun, Sumatera Utara Kab. Simalungun, Sumatera Utara Kab. Serdang Bedagai, Sumatera Utara Kab. Asahan, Sumatera Utara Kab. Labuhan Batu, Sumatera Utara Kab. Padang Lawas, Sumatera Utara Kab. Simalungun, Sumatera Utara Kab. Simalungun, Sumatera Utara Kab. Simalungun, Sumatera Utara Kab. Simalungun, Sumatera Utara Kab. Labuhan Batu, Sumatera Utara Kab. Labuhan Batu, Sumatera Utara Kab. Labuhan Batu, Sumatera Utara Kab. Labuhan Batu, Sumatera Utara

Area Summary

Proposed Year for certification

Total (Ha) 8.127,00

Planted (Ha) 5.953,00

2011

4.514,07

3.392,00

2011

4.582,70

3.725,00

2011

4572,42

3.658,00

2011

8.406,35

7.177,00

2012

5.989,00

5.018,00

2012

4.211,90

3.499,00

2012

4.432,00

3.392,00

2012

4.478,00

4.189,00

2012

4993,40

4.455,00

2012

6.475,00

4.526,00

2013

2.620,00

2.112,00

2013

8.550,50

6.910,00

2013

6.979,72

4.154,00

2013

4.956,70

3.970,00

2014

3.854,26

3.062,00

2014

8.965,59

7.041,50

2014

8.083,73

6.770,00

2014

4.775,00

4.222,00

2014

7.305,90

5.263,00

2014

2.047,00

1.802,00

2014

2.601,37

2.194,00

2014

2.513,86

2.118,00

2015

2.669,00

2.485,00

2015

4.065,00

3.124,00

2015

9.475,08

3.549,20

2015

9.735,87

3.509,20

2015

4.065,00

3.124,00

2015

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Mill

Location

POM BAJ POM TIN POM MAY POM AJA POM DOS POM PAM POM SAL POM GUB POM OSA POM ADO POM ABA POM BER

Bah Jambi Tinjowan Mayang Ajamu Dolok Sinumbah Pasir Mandoge Sawit Langkat Gunung Bayu Sosa Adolina Air Batu Berangir

Production/Year

CPO 34.827,00 26.231,00 16.775,00 25.205,00 18.518,00 37.489,00 20.375,00 35.094,00 49.374,00 40.810,00 32.907,00 30.699,00

Time-bound plan for certification

PK 7.159,00 5.380,00 3.420,00 5.183,00 3.467,00 7.713,00 4.222,00 7.376,00 9.919,00 8.415,00 6.817,00 6.204,00

2011 2011 2011 2012 2012 2012 2013 2013 2014 2014 2014 2014

1.8 Area of Plantation Three (3) plantations are included in this certification assessment. Their area statistics are given in Table 5. Table 5: Area statistics of estates for this certification assessment (as at Nov - Dec 2009)

Estate Pabatu Dolok Ilir Pulu Raja Total

Total (Ha) 5,770 8,184 4,636

18,590

Area Summary Planted With Palm (Ha) 4,799 7,087 3,669

15.555

Mature (Ha)

Immature (Ha)

4,283 6,004 3,422

516 523 247

13,709

1,286

1.9 Approximate Tonnages Certified All FFB produced from the company’s 3 (three) estates are processed by the three mills. The production from independent farmers, which are also processed in the mills, are not included within the scope of this RSPO certification.(see para 1.4). The approximate volumes for certification by the 3 mills are shown in Table 6: Table 6: Palm oil / palm kernel volumes claimed for certification Annual Production (tones) Mill Pabatu Dolok Ilir Pulu Raja

Location Kabupaten Serdang Bedagai Kabupaten Simalungun Kabupaten Asahan TOTAL

CPO

PKO

PK

23,805 36,016 20,977

-

4,842 9,966 4,551

80,798

19,359

The volumes are based on the actual production from January to December 2009.

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1.10 Date Certification Issued and Scope Certificate The scope of the certificate to be issued covers the production from the 3 (three) palm oil mills and the 3 (three) estates. The date of issuance of the certificate will depend on approval of this Assessment Report by the RSPO secretariat. A draft of the certificate is shown in the annex. 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. The offices of PT. TÜV NORD Indonesia are at; Head office System Certification Management Perkantoran Hijau Arkadia Tower F, 7th Floor Suite 706 Jl. Let. Jend. TB Simatupang Kav. 88 Jakarta 12520 – Indonesia Tel : +6221 7883 7338 Fax : +6221 7883 7336

Branch office Graha Pangeran 7-H1 Floor Jl. Jend. A Yani 286 Surabaya 60234 – Indonesia Tel : +6231 8292602 Fax : +6231 8292723 Laboratory Division Jl. Jababeka XVII E Blok U No. 27B Kawasan Industri Jababeka I Cikarang Bekasi 17530 – Indonesia President Director: Mr. Robert Napitupulu Email: [email protected] Website : www.tuev-nord.de

2.2 Assessment Methodology The certification assessment of PT. Perkebunan Nusantara IV was carried out from October 25 to 29, 2010. The assessment comprised four phases: ƒ A desk audit (document check) of PTPN IV with the help of a customised RSPO audit checklist according to RSPO manual, procedures and palm oil mill and estate working instructions; ƒ Review results of consultation with stakeholders prior to certification assessment. The detailed method is given in point 2.8. ƒ 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). ƒ Verification of proposed corrective actions continued by review of the assessment report by internal veto persons (directors of PT. TÜV NORD Indonesia)

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The summary public report of certification assessment includes Corrective Action Requests, Corrective Action Taken Plan, Verification of Corrective Action Taken, and Progress on implementation of Corrective Action which will be checked during the Surveillance Audit. The requests for Corrective Action to close Non Conformities are outlined below -

ƒ

• Major Non Conformity: mistakes made in interpretation of RSPO P&C by PTPN IV directly influencing the certification assessment; requirements of some RSPO P & C not met or, in other words, non-compliance to the P&C on major indicators; These raise doubt on the capability of PTPN IV to achieve the desired results; Minor Non Conformity: − Where information is insufficient, unclear or not transparent enough to establish whether a requirement is met, or Non-compliance to the requirements of the RSPO P & C on a minor indicator(s);

-

• Potential for Improvement Conditions and factors in PTPN IV that will allow it to better satisfy the requirements of the relevant standards;

-

Strengths, weaknesses, opportunities and threats of PTPN IV

The final certification assessment was made after issuance of the Corrective Action Taken statement by PTPN IV. The auditor has assessed the Corrective Actions Taken and is satisfied that the results comply with the required standards. Based on the compliance ensured, 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. The checklist serves the following purposes: - It organizes, details and clarifies the criteria that the management is expected to meet; - It ensures transparency in the certification process - whether the criteria have been satisfied by the management. The checklist was drawn up against the Indonesian National Interpretation of the RSPO P & C. 2.4 Review of documents The PTPN IV documentation was submitted in September 2010 and its adequacy / completeness reviewed against the certification assessment checklist. 2.5 Onsite and Follow-up interviews The audit team collected all the information on the PTPN IV 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 PTPN IV management system was implemented within the organization. The certification assessment was carried out from 25 to 29 October 2010. TÜV NORD Indonesia conducted on-site interviews with the PTPN IV management, and palm oil mill / estate personnel to verify some information and resolve issues arising from reviews of the documents and PTPN IV management.

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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 PTPN IV management − Management Policy and Quality, SM-K3 and Environmental Management System. − Involved personnel and responsibilities − Justification of RSPO P & C − Monitoring and measurement of environmental performance for waste water treatment − Identification of environmental aspects and Environmental 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 including NGO’s − Environmental protection within the estate(s) and mill(s) 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 Corrective action For remedying any non-compliances, the required corrective actions were discussed. PTPN IV was required to resolve, or close out, outstanding issues by responding to the Non Conformity Report by describing, with evidence, on the corrective action taken. In this certification assessment, the auditing team has raised 5 non-conformities and noted some improvements that can be made. The non conformities and suggested improvements are all documented in this report. 2.7 Qualification of the lead assessor and assessment team Lead Assessor

: Hasnop Putra

A minimum of post high school (post secondary school) training in, and either agriculture/forestry, environmental science or social science; − Mr. Hasnop Putra has a S1 (Ir, Engineer) degree in Mechanical Engineering from the University of Jayabaya in 1994-1997; A. Md (Ahli Madya) degree in Mechanical Engineering from the Polytechnic University of Indonesia in 1988-1991; CDM training course – Essen, Germany in June 2008; Environmental Rules & Regulations and Implementation by BAPEDAL in April 2000; Practical Course on Environmental Management System, Environmental aspect and impact assessment, documentation establishment and internal audit by Japan Audit and Certification (JACO) in December 1998; Environmental Management Law and Environmental Policy by EX-CORPORATION - BAPEDAL in December 1997; Big Challenge Biodiversity Course for Certification Body, June 2009 sponsored by RSPO, IFC, RESCUE, Wild Asia;

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Green House Gas (Global Warming) Training - CDM & VCS project for validation and verification at TÜVNORD Group, ESSEN- Germany 2008 At least 5 years experience in area of work relevant with the audit (e.g., oil palm management; agriculture, ecology; social science); − Well versed in management system certification as Project Engineer, Assistant Manager SBU 1.6 to PT. TÜV International Indonesia (TÜV Rheinland Group) from February 2001 to May 2004; PT. TÜV SUD PSB Certification (Formerly PT. PSB Certification) from May 2004 to November 2004; and PT. TÜV NORD Indonesia (TÜV NORD Group) from November 2004 to the present as the System Certification Manager. − Qualified in auditing since 2001 in all sectors and state-owned and private oil palm estates and palm oil mills as follows: State-Owned Enterprises (Perkebunan Nusantara IV, V, VI, XIII), Private Company (PT. London Sumatra, PT. Sahabat Mewah dan Makmur, PT. Sampoerna Agro , PT. Multi Nabati Asahan, Wilmar Group, etc. − Audited for SA 8000 standard in textile and garment industries, shoe and toy manufacturing − Involved in Green House Gases for CDM and VCD projects - validation of some companies in Indonesia. − Team leader for RSPO certification assessment for PT. London Sumatra Indonesia, Tbk. Trained in practical application of the RSPO criteria, and RSPO Certification System; − Trained Lead Assessor / Internal Assessor in Sustainable Palm Oil by Indonesia Palm Oil Board and KAN (National Accreditation Committee) in March 2008 to April 2008; Completed ISO 9000/19011 lead auditor course; − PE International - ISO 9000:2000 Series Auditor/ Lead Auditor Training Course - Certificate Number LA 072 in June 2001; − PE International - ISO 14001:2004 IEMA Advanced EMS Auditor Training Course - Certificate No. IQR/EMS4/00102, England and Wales in March 2001; Underwent supervised training in practical auditing against the RSPO Criteria or similar sustainability standard, with a minimum of 15 days’ audit experience in Extensive experience in sustainable management system certification in the palm oil and oil palm industry with over 30 days’ auditing of State-Owned Enterprise (Perkebunan Nusantara); Sampoerna Agro Palm Oil Mills and Plantations, London Sumatra Indonesia Palm Oil Mills and Plantation. Assessor

: Wieke Savitri

Read for her degree in Agriculture from Bogor Agricultural University in 1994. Then, consultant at Perkumpulan Untuk Peningkatan Usaha Kecil, a foundation to promote small scale enterprises by offering training and consultation in business management, human resources, marketing and IT. Before joining TUV NORD Indonesia, she spent 7 years working for Danone–Aqua, a beverage company, in which she held various positions, such as Quality Control Manager at Pandaan factory in East Java before her last position as Quality Assurance Manager at Klaten factory in Central Java. Her passion for environmental and social issues had led her to join Aqua Foundation even while working in Danone-Aqua - to develop community development programs for people living around her factory. She also attended a Workshop for Community-based Environmental Educators by the United Nations of Environmental Program in Bangkok. She joined PT. TUV NORD Indonesia in September 2006 as QMS auditor, and was appointed Surabaya Branch Manager in May 2008. She is an experienced auditor in palm oil manufacturing and oil palm estates. She attended DOEN RSPO auditors training in 2008. Technical Expert

: Dr. Hariyadi

He holds a doctorate (S3) in Agriculture Environment from Bogor Agricultural University (IPB), and has a strong background and experience in the socio-environment aspects of agriculture as a lecturer in Agriculture and Socio-environment. Assisted in socio-environmental impact assessments and did research in Green Giant NPK fertilizer effects on immature oil palm growth. Has extensive

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experience in research in plant water and nutrient requirements, irrigation and fertilizer application, seedling selection and Integrated Pest Management. Qualified in biodiversity assessment and biodiversity science. Underwent auditor training in oil palm estates and palm oil mills in EMS and RSPO P &C . Completed training in EMS course for ISO 14001:2004 and has experience in oil palm plantation waste management, disposal of EFB and fertilizer packaging and environmental impact on employees’ housing complexes. Member of the team involved in RSPO certification assessment of PT. London Sumatra Indonesia, Tbk in 2008. 2.8 Outline of how stakeholders were interviewed Stakeholder consultations began with notification of the upcoming assessment in the websites of RSPO and PTPN IV. Telephone calls, e-mails, facsimiles or letters were sent to applicable stakeholders. PTPN IV has held regular meetings with its stakeholders in accordance with external communication procedure in the SM-K3 Code of Conduct or “SPO Prosedur Integrasi Konsultasi dan Komunikasi”. Before proceeding with the assessment, the audit team read through the complete 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 of plans for community development and the targets to be achieved. Some of the items on the agenda for the stakeholders’ meeting were: to maintain infrastructure of churches, mosques, roads, irrigation and drainage, kindergarten play yard 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 mills and supply bases. The discussion with stakeholders was well organized. The audit team then visited some stakeholders for interviews to obtain both positive / negative information or any issue in connection with the operations of the PTPN IV palm oil mills and supply bases. The minutes were recorded in the proper manner for confirmation by PTPN IV, after which the results were incorporated in the assessment finding.

2.9 List of Stakeholders The table below lists the stakeholders : Statutory Body

Pabatu Palm Oil and Estates Bupati Serdang Bedagei Kadis Kehutanan & Perkebunan Kadis Naker Kadis Pengendalian Dampak Lingkungan Kapolres Camat Tebing Tinggi Kapolsek Tebing Tinggi Kapolsek Dolok Merawan LSM/ NGO

Contact Person (if applicable and address)

Phone

Ir. H.T. Erry Nuriadi, MM Ir. H. Sucipto L.Tobing Karno Siregar Burhanuddin Nst

0621441009 062144218 0621442163 08153000004

Robert W Dimas Kurniawan AKP. H. Harahap M. Sialoho Gintar Batubara

08126006462 081260971177 0811633644 08136112123 LSP2SU

E-mail

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Statutory Body Dolok Ilir Palm Oil and Estates Bupati Simalungun Kadis Kehutanan & Perkebunan Kadis Naker Kadis Pengendalian Dampak Lingkungan Kapolres Camat Dolok Batu nanggar Kapolsek Dolok Batu Nanggar LSM Pulu Raja Palm Oil And its Estate Bupati Asahan Kadis Kehutanan & Perkebunan Kadis Naker Kadis Pengendalian Dampak Lingkungan Kapolres Asahan Camat Pulu Raja Kapolsek Pulu Raja Disbun Asahan Indigenous people

Kapolres Camat Dolok Batu nanggar Kapolsek Dolok Batu Nanggar LSM Pulu Raja Palm Oil And its Estate Bupati Asahan Kadis Kehutanan & Perkebunan Kadis Naker Kadis Pengendalian Dampak Lingkungan Kapolres Asahan Camat Pulu Raja Kapolsek Pulu Raja Disbun Asahan Indigenous people

Local Community A. Pulu Raja Kepala Desa Orika Kepala Desa Manis Kepala Desa tunggul 45 Kepala Desa persatuan Kepala Desa Ofa pdg mahondang Kepala Desa pdg mahondang B. Dolok Ilir Kepala Desa Serbelawan Kepala Desa Bandar Selamat Kepala Desa Bah. Tobu Kepala Desa Selinduk Kepala Desa Kahean Kepala Desa Dolok Tenera Kepala Desa Dolok Ilir 1 Kepala Desa Dolok Mainu

Contact Person (if applicable and address)

Phone

Drs.H.T.Zulkarnain Damanik, MM Ir. Amran Sinaga Drs Jonikerdus Saragih Ir. Joner Sibarani

0622331033 06227550377 06227552127 0622331246

AKBP. Marzuki, SH Irwan Damanik, S, Sos K. Manurung Aswad

08126598675 085261831562 LSM PP

Drs Risuddin,MM Ir. Pantas Sihimbing H. Erwis Edi Pauja Lubis, SH, MH Drs. Witoyo

(0623)411000 (0623) 41946 (0623)41766 062341182

AKBP Mashudi,sik,SH, M.Hum Rahman Halim AKP Abdul Rahman Suyitno Contact Person (if applicable and address) No Indigenous People AKBP. Marzuki, SH Irwan Damanik, S, Sos K. Manurung Aswad

0623347110 081397892879 (0623)355110 062341182 Phone

08126598675 085261831562 LSM PP

Drs Risuddin,MM Ir. Pantas Sihimbing H. Erwis Edi Pauja Lubis, SH, MH Drs. Witoyo

(0623)411000 (0623) 41946 (0623)41766 062341182

AKBP Mashudi,sik,SH, M.Hum Rahman Halim AKP Abdul Rahman Suyitno Contact Person (if applicable and address) No Indigenous People Contact Person (if applicable and address)

0623347110 081397892879 (0623)355110 062341182 Phone

Suprapto Alimin Masdi manurung Rahman Irwan lumumba sitorus Osven marbun

081387078887 0811622847 085261254047 081396180476 08116286633 081370559778

Osniadar M. Rusli Sumarseh Samiaji Nurlela Sujianto Jiran Suparjo

08126219862 08126354322 081265817638 085297030414 085296875360 08126484570 08126319807 081375352069

Phone

E-mail

E-mail

E-mail

E-mail

Local Community Kepala Desa Bahung kahean Kepala Desa Bahung huluan Kepala Desa Korajim Kepala Desa Dolok ilir 2 Kepala Desa Bah. Damar Kepala Desa Tanjung Parapat Kepala Desa Padang Mainu Tokoh Masyarakat C. PABATU Kepala Desa G. Kataran Kepala Desa Kedai Damar Kepala Desa Mainu Tengah Kepala Desa Pabatu 1 Kepala Desa Pabatu 2 Kepala Desa Pabatu 3 Kepala Desa Peletokan Kepala Desa Gunung Para Kepala Desa Pabatu Kepala Desa Korajim Kepala Desa Dolok Merawan Smallholder

Independent supplier of Materials and services A. Pabatu UD. Makmur Jaya PT. Palm Mandiri Sentosa B. Dolok Ilir Saudara Tani UD. Dicky.S Pedagang Pengumpul Kelompok Tani UD. Buana Raya Abadi PT. Palm Mandiri Sentosa UD. Makmur Jaya PD. Agromadear C. Pulu Raja CV. Justin CV. Mas UD. Buana Raja Abadi CV. Wira Andalan Mandiri UD. Bertuah Ganda UD. Makmur Jaya

Contact Person (if applicable and address) Juari Yeswardi Supianto Safii Mislan Rusli Arbai purba Salahuddin

085270568453 081370256410 081396352208 081361433633 081370670449 081265221210 081376388240 081370561285

Swarto Musa Khalik Nst Suratman Dra. Nurti Aritonang Zahri Wagiyanto Arman Sinaga Irawadi Idris Supianto Sinaga Pujiono Spd

085306210280 085263428094 08126342809 081397428358 081361014237 081370859466 081397460197 085275329876 081375991594 081396335208 08136155403

Contact Person (if applicable and address) No Smallholders Contact Person (if applicable and address)

Phone

E-mail

Phone

E-mail

Phone

E-mail

Saiman Siahaan Anizar Simanjuntak

08116203677 0812621808

Erwin St Mardi Pujianto Riana Sugiyanto Wibowo Darmaimanjuntak Saiman Siahaan Jan Romarsen Saragih

081260350777 081361764569 08126210512 08192131388 081370099581 085296155619 08116203677 08126360742

Titin indrawati Edy Syahputra Sugianto Wibowo SP Iwan Ganda Simanjuntak Ramli Emi Saiman Siahaan

081370702377 081361206603 081370099581 081263372430 081381375559 08116203677

Workers’ Organization A. Pabatu SPSI Pabatu B. Dolok Ilir SPSI Dolok Ilir C. Pulu Raja SPSI Kecamatan Pulu Rakyat Local NGO A. Pulu Raja LSM RCW B. Pabatu Lp2su C. Dolok Ilir POM &Estate Topan National NGO A. Pabatu POM & Estate WWF Indonesia B. Dolok Ilir POM & Estate WWF Indonesia C. Pulu Raja POM & Estate WWF Indonesia

Contact Person (if applicable and address)

Phone

Iwan Daulay

085261069789

Edy Rangkuti

081397586934

Hilal Siagian Contact Person (if applicable and address)

081263607644 Phone

Firman Tambunan

081370560566

Jintar Batubara Jintar Batubara

081361688184

Muhammad Taufiq pasaribu Contact Person (if applicable and address)

081375354235 Phone

Purwo Susanto

081352052566

Purwo Susanto

081352052566

Purwo Susanto

081352052566

E-mail

E-mail

E-mail

There is no indigenous people (“orang asli”) living around PT. PTPN IV based on secondary demographic data, reports of HCV and consultations with the local community. The minutes of stakeholder meeting are presented in Section 3. 2.10 Questions posed in interviews with stakeholders ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ ƒ

Did PTPN IV provide information on the RSPO certification exercise including plans for safety and health to the public and stakeholders? Does PTPN IV hold regular meetings on community development? Does PTPN IV respond well to complaints in respect of RSPO P & C implementation? Is there a clear grievance and complaints procedure in the company? Are there still any complaints on land acquired by PTPN IV for planting oil palm? Is there any environment impact caused by the operations of PTPN IV? Are there any conflicts not yet solved satisfactorily? Is there a procedure for settlement of conflicts communicated to the local community? Does PTPN IV meet with stakeholders regularly to discuss on 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 mills and supply bases?

All the responses / comments, whether positive or negative, were recorded by the audit team by hand. The audit team verified the information by the standard operating procedure. . 2.11 Date of next surveillance visit The next surveillance visit audit has to be within 12 months from the date of RSPO approval of the Initial Certification. The surveillance audit has to be conducted yearly for a 5-year period.

3. ASSESSMENT FINDING 3.1 Summary of findings Objective evidence was obtained separately for each of the indicators for the mills / estates in the certification assessment. The information was comprehensively asked from the 3 (three) mills and 3 (three) estates, and independent farmers. The results for each indicator from the different operational areas were aggregated to assess the overall conformance of the Company's operations to each criterion. A statement is made for each indicator on the findings . A detailed description of the Non-Conformities is given in Section 3.2. Nonconformities were raised against two (2) Major and three (3) Minor Indicators, with some opportunities for improvement noted. Where a nonconformity / observation is assigned, reference is made at the end of the text of the Indicator to which it refers. PTPN IV has prepared a Corrective Active Plan which date for implementation has been accepted by PT. TUVNORD Indonesia. The effectiveness of the corrective action for minor nonconformities will be checked on the next surveillance but the major findings have to be closed within 60 days. The following is a summary of the findings for compliance with the RSPO Principles & Criteria. Criterion 1.1 Oil palm growers and millers provide adequate information to other stakeholders on environmental, social and legal issues relevant to RSPO Criteria, in appropriate languages and forms to allow for effective participation in decision making. PTPN IV has a procedure for communicating with stakeholders – “Prosedur Integrasi Komunikasi dan Konsultasi”. All the heads of mills / plantations are required to provide adequate information as required by the RSPO criteria. The requests for information are recorded in the “Stakeholders‘ Request Log Book,” with hard copies held in files in the General Affairs Department.(1.1.1). The response(s)

will be prepared by heads of mills / estates or forwarded to the PTPN IV Head Office depending on their importance. (1.1.2). The records of requests / responses will be kept for 5 (five) years (1.1.3). However, notwithstanding the good intentions, PTPN IV had not recorded nor responded appropriately to requests for information in accordance with its own communication procedure, especially in Pulu Raja the stakeholders meeting was not conducted properly . A major NCR was therefore raised against Indicator 1.1. (T01.10/10). 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 the estates know their land under use, the details of which are displayed on HGU boards at the entrance of each estate. PTPN IV has a system to monitor and measure the environmental and social impacts, as required in its AMDAL approved by Bapedalda (local environmental agency) of Kabupaten Serdang Bedagai for Pabatu Mill and Estate, Kabupaten Simalungun for Dolok Ilir Mill and Estate, and Kabupaten Asahan for Pulu Raja Mill and Estate. RKL/RPL and UKL/UPL reports are made six-monthly to the Bapedalda Kabupaten. A report on its social activities “Community Development and Corporate Social Responsibility in 2010 – 2011” is also available stating its free medical treatment for minor diseases, mass circumcision for young boys (sunatan masal), cataract treatment for the old, agricultural skills training for the locals (estate workers / farmers), scholarships available, renovation aid for mosques / churches, road, tree planting and loans for the purchase of pedestrian tractors. The Health Safety Environment Program (K3 program) is reported to the Ministry of Labor of Republic Indonesia regularly  since  PTPN IV has implemented the mandatory SMK3 (Occupational Health and Safety Management System) by the Ministry of Labor of Republic Indonesia), for which it has to submit safety and health reports.(1.2.1). All records are properly kept in the General Affairs Department to the proper periods according to SOP No. SPO 07, e.g., safety, health and  environment reports for 5 years, social records 10 years, and legal records indefinitely (1.2.2). All the above documents are available on request.

Criterion 2.1 There is compliance with all applicable local, national and ratified international laws and regulations PTPN IV keeps copies of all the legislations / regulations applicable to it from the applicable regulation list in “Prosedur Evaluasi Kepatuhan Terhadap Peraturan dan Persyaratan No. PI-MR07/ Revision 01/ issued 6 August 2010”. The mills / estates managers identified and know their legal requirements, including validating / renewing licenses and permits for their activities. PTPN IV has ISO 14001 certification for its environmental management and SM-K3 (Health Safety Environment) certification for all its three mills and estates. The General Affairs Assistant Manager is responsible for keeping the mills / estates operating within the national laws / regulations, and is required to keep up to date with any changes. The responsible personnel – engineers, boiler men, electricians, charge men have the necessary qualifications (by Ministry of Labor of Republic of Indonesia as required by SMK3), and the equipment – boilers and diesel generators - the necessary certifications / approval (by Surveyor Indonesia, a state-owned inspection body, as required by SMK3). All the documents were checked and found to be in legal compliance.  Criterion 2.2 The right to use the land can be demonstrated and is not legitimately contested by local communities with demonstrable rights The boundaries of PTPN IV land  were inspected at several places and at every instance found to be demarcated by T-0 pillars. There is  also  a HGU board at the entrance of each estate displaying the details of its land. The General Affairs Department is responsible for resolving any conflict over land. Currently, there are no claims on PTPN IV land by anyone. The mill / estate managers have ensured proper registration of their HGU certificates in the acquired land register. Figure 1: Demarcation of PTPN IV land by pillars on a boundary and HGU boards at estate entrance with details of estate

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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. Criterion 3.1 There is an implemented management plan that aims to achieve long term economic and financial viability PTPN IV has 4 years’ projection (2010 – 2014) of its crop,including key performance data for its three mills and estates as part of its long term economic planning. In its Rencana Jangka Panjang Tahun 2010 – 2014, yield and mill performance will improve, e.g.,OER (Oil Extraction Rate) by the mills will average 23.27% (2010) 23.59% (2011), 23.85% (2012), 23.83% (2013) and 24.23 (2014). The replanting schedule is included, e.g., in 2014, 124 ha Pabatu estate (planted 1987), 374 ha Dolok Ilir estate (planted 1987); 189 ha Pulu Raja estate (planted 1987). There is, however, no plan to increase the mill capacity which is currently Pabatu mill (30 t/h), Dolok Ilir mill (60 t/h) and Pulu Raja mill (30 t/h). PTPN IV will continue purchasing FFB from smalholders through approved contractors to increase its CPO production and offer them an outlet for their fruits.

Criterion 4.1 Operating Procedures are appropriately documented and consistently implemented and monitored PTPN IV has prepared a Standard Operating Procedures with the best practices for its mill and estate operations. All the three mills and estates have been certified to QMS ISO 9001, EMS ISO 14001 and HSE management SMK3 for their management systems by TUV NORD and the Ministry of Labour of Indonesia. Most of the Standard Operation Procedures are incorporated in the SM-K3 management system. The following procedures have been implemented for sustainable palm oil production: a. SOP for Oil Palm (nursery practices, land preparation, planting, upkeep, harvesting, waste management, HCV, , and management of hazardous wastes, e.g., agrochemical containers). b. SOP for Palm Oil Mill [fruit processing, boiler operations, power generation, water treatment, land application of POME, electrical systems, quality (including monitoring of CPO parameters), dispatch and laboratory inspection of incoming fresh fruit bunches]. c. Manual for Health & Safety (SM-K3) and there are also SOPs on safe working practices both in mill or estate, e.g., application of pesticides, using PPE , emergency preparedness and response. Updated SOPs will be sent to the Section Heads of the Mills / Estates whenever there are changes made. The SOPs are consistently implemented to monitor FFA level and moisture in CPO during processing and before delivery to buyers. Monitoring Records of inspection are kept properly in a laboratory cabinet with proper identification. The performance of each mill work station is monitored on a shift basis and recorded daily. A monthly report is produced by each mill / estate for the Director of Production in Head Office. There is a cross internal audit planned by Head Office and done at least once a year to assure that the SOPs are consistently implemented. However, in Dolok Ilir Mill there were no monitoring plan and records available for maintenance and service of its CPO bulk tanks. A NCR was raised against Minor Compliance indicator 4.1. (T02.10/10).

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Criterion 4.2 Practices maintain soil fertility at, or where possible improve soil fertility, to a level that ensures optimal and sustained yield PTPN IV fertilizes its palms annually to the recommendations of ARAB (Agriculture Research Association Berhard), its Malaysian agronomic consultants, based on annual analyses of leaf nutrient (N, P, K, Ca, Mg, Zn and B) levels. For example : soil and leaf sampling at Dolok Ilir estate was carried out on 28.07.2009 to 04.08.2009. The number of soil and leaf samples taken were: Afdeling (Division) 1 (414 ha) - 18 soil and 18 leaf samples; Afdeling 4 (668 ha) - 21 soil and 21 leaf. Sampling details for Division 1: crop oil palm, date 4 August 2009, e.g., Block 90A (Planted 1990) Material (DxP, Marihat Research Station, PPKS), frond 17, palm 11. As part of the agronomic practice to improve soil fertility and reduce wastes, EFB and POME are also applied and a legume cover, e.g., Pueraria javanica / Centrosema muconoides planted.

Criterion 4.3 Practices minimise and control erosion and degradation of soils PTPN IV has committed to control and minimize soil degradation in its plantations. Generally, the topography of the three estates range from level to undulating and hilly. Slope classification: flat (0 – 3%) 92.2%, gently rolling (x- y%) 7.0.%, slightly hilly (a – b%) 0.8%. Soil types: red-yellow podzolic with some brown-yellow podzolic in the lower areas. Most of Pabatu estate has very fertile soils of aggregation of haplulox (oksisol) and kandidults (ultisol); aggregation of troporthens and humitropepts, aggregation of troporthens and dystropepts as classified by the USDA. There is SOP to minimize erosion by contour terracing. There is also a road maintenance program as part of the RKO (Rencana Kerja Operasional – operational plan) which is reviewed every 3 months. PTPN IV applies certain techniques to reduce soil erosion, especially during land preparation for planting / replanting, such as planting a legume cover, e.g.,: Mucuna brachteata, terracing/platforms, frond stacking against the slope, digging silt traps pits and windrowing the old crop. There are erosion monitoring plots in some fields to assess the soil loss against the type, slope and ground cover. The plots are started at planting and maintained until the canopy of the palm oil closes over. Regular road maintenance is carried out (grading, compacting and cambering) to ensure no delay in transport of FFB to the mills. Total length of roads in all the PTPN IV estates is ~38 km. The road maintenance program is included in RKAP (annual working plan) of PTPN IV. The program to maintain 4.2 km of roads of which 3.4 km (81.3%) was completed during audit. Figure 2. Well-maintained road in PTPN IV

As there are no fragile soils (including peat) according to a HCV assessment, PTPN IV does not have plan to manage them.

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Criterion 4.4 Practices maintain the quality and availability of surface and ground water PTPN IV has installed tanks for storing water for the mills, estates and housing areas. It has a permit to use surface water from the Government of North Sumatra (“Keputusan Gubernur Sumatera Utara No. 546.2/4062/K/2008”) allowing a maximum draw of 8.77 l/second (631.44 m3/day over 20 hours). The daily water consumption is recorded in “Pemakaian Air PKS”. PTPN IV has established a standard for water requirement to process FFB of. All the three mills checked complied with the standard and regulation of water consumption. To avoid contamination of river water PTPN IV does not apply agrochemicals to its oil palm in riparian zones - 50 meters along the river banks. It is in the process of planting bamboo along the banks – so far, ~885 have been planted of the projected 1,300 bamboos along 7.8 km of banks. Monitoring of BOD is done quarterly by UPT Laboratorium Lingkungan-Badan Lingkungan Hidup KAN (Komite Akreditasi Nasional). The BOD levels and other parameters measured comply with the local requirements in the Liquid Waste regulations by the an environmental decree by Province of North Sumatra . This observation was made from a report sighted - No. 58 A/BLH.SU-UPT,LL/VI/2010 dated 21.06.2010. Criterion 4.5 Pests, diseases, weeds and invasive introduced species are effectively managed using appropriate Integrated Pest Management (IPM) techniques PTPN IV has formulated an Integrated Pest Management (IPM) Program. The main pests of its oil palm are leaf-eating insects and rats that feed on the palm fruits. IPM is practiced incorporating cultural, biological, mechanical or physical methods to minimize use of chemicals e.g., planting of beneficial plants (cultural method), such as Bunga pukul delapan (Turnera subulata) and air mata pengantin (Antigonom leptosus) to harbour predators to the pests. Regular census is carried out on the pest situation by monitoring the insect occurrence on the palm fronds by the Global Telling and Intensive Telling methods as early warning system (physical method by picking the insects ). Tyto alba were protected as natural predator of rats (biological method). IPM techniques and natural control were noted practiced on all the plantations. The use of herbicides is recorded and displayed by the estate manager. The records are well documented. Uncontrolled use of herbicides can severely affect the health of the sprayers, and also damage the palm fruits.

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 PTPN IV has a policy requiring PPE to be worn while applying agro-chemicals - in the SOP, Guide to the Safe Use of Pesticides. The SOP lists the justification for chemical use, conditions and application rates for individual chemicals, information and requirements on storage safety, solution preparation and application, pesticide waste disposal, first aid and the pesticides allowed by the regulations.. A letter from a Director dated 17 September 2009 prohibited agrochemicals categorized under World Health Organization Type 1A or 1B, such as Heptaklor, Kaptafol, Klordan, Klordimefon, Leptofos, Lindan, Metoksiklor, Mevinfos, Monosodium metam, Natrium klorat, Natrium tribromofenol, Parathion metal, Pentaklorofenol, Arsenic, Mercury, Strichnin, Telodrin, Toxaphene, Paraquat dichlorida, Alumunium fosfida, Zinc choloride, Magnesium fosfidam Metil bromida, Diklorvos, Metidation, Endosulfan (Source: Komisi Pestisida Departemen Pertanian). A list of the agrochemicals used is shown in Daftar Herbisida, Insektisida dan Fungisida Yang Digunakan, e.g., Metil metasulfron 20%, Florok sipir 1MHF, Isopropil amina glifhosate, Dimenhipo and Asepat for Ulat kantong (Metisa plana), Delta Metrin for Ulat api

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(Thosea asigna), Karbo Sulfat for Orytes. There is procedure established for agrochemical use with a list of approved agrochemicals and their dosages, application by trained personnel, storage in secured areas and empty containers stored in a B3 (hazardous and toxic materials) waste warehouse before collection by a licensed contractor. There is compliance with the Material Safety Data Sheet (MSDS) in accordance with Government Regulation (PP) No.74 of 2001. The annual training programme includes training in the use of agrochemicals / pesticides. However, the auditor found in Pabatu estate that agrochemicals were not used in accordance with the SOP recommendation is 0.35 cc/ha, but in June 2010 was found 0.5 cc/ha. A NCR was raised against Major Compliance Indicator 4.6 (T03.10/10). The company requires regular medical check ups for workers who apply agrochemicals. For this, they are sent to Pabatu Hospital to be examined by qualified medical practitioners. Any worker found sick from his/ her job is immediately moved to a less hazardous one, and given medical treatment until he/ she recovers. The workers understand that if they are ill they should go to the doctor in policlinics at the mills/ estates. In Pabatu, 151 workers went for their yearly checks - a physical test, X-ray, blood test, urine test..  However, in Pulu Raja, some workers were missed out, especially female workers in Afdeling I. A minor NCR was raised against indicator 4.6. (T04.10/10). There is a regulation that pregnant / breast-feeding women are not allowed to work with agrochemicals. The auditor confirmed that it is complied, no pregnant / breast-feeding women worked with agrochemical.

Criterion 4.7 An occupational health and safety plan is documented, effectively communicated and implemented The PTPN IV has a safety, health and environment policy. Explanation and communication of the policy is the responsibility of the safety engineer (SM-P2K3) who daily monitors and inspects all facilities in the mills and estates for emergencies. There are regular meetings between management and workers on health and safety issue. All the operations have been risk assessed for obtaining SMK3 certification. With the assessment were developed procedures for accidents and emergencies. All the workers can be assumed have a Permit to work by Ahli K3 (Safety Officer) since the auditee has already implemented SMK3. There is a SOP for safekeeping of toxic chemicals and also for keeping records on their use. An area sprayed with a toxic chemical would have a signboard posted warning people of the danger and telling them to keep away. Records of mill and estate operations and facilities are kept properly, filed and retrievable in the safety engineer’s room. There are also provisions for accident records, but nothing as yet has happened The HSE policy is available in all the mills and estates and communicated to all contractors in an agreement contract. All employees and contract workers are covered under JAMSOSTEK. There is company regulation that medical checks shall conducted regularly for employees, especially those in high risk work.. Workers in hazardous areas are provided training to minimize their risk. The last Emergency drill was conducted on 29 June 2010 at 07.00, documented in photographs and a list of attendance. PPE is issued for work in high risk work or hazardous places, e.g. while applying agrochemical or in high noise areas (>70 db). The high noise areas are monitored by an independent external laboratory. The workers in such areas are sent for audiometric tests yearly. The results suggest no untoward effects. Some were interviewed in this audit, including those working in high noise areas, and found to have no complaints on their work. However, not all the workers were found to wear their PPE in Pulu Raja. They were admonished by the foreman and asked to do so immediately. Checks on the issuance of PPE revealed not everyone received them. A minor NCR was raised. (T05.10/10).

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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 program in 2009 -2010 included firefighting, handling of hazardous wastes, integrated pest control and agrochemical spraying. Some contractors are included in safety training conducted by safety engineers. Independent farmers have also received training on agronomic practices. The training is regularly evaluated for its effectiveness to ensure that all staff and workers are sufficiently trained. All the workers have received or will receive training in first aid ( scheduled partially ). The contractor workers are also offered training in safety issues with proper records kept, but not yet the independent smallholders. All the training records were checked during the audit.

Figure 3: Firefighting training in mill and estate

Criterion 5.1 Aspects of plantation 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 PTPN IV has appointed an independent body, Lembaga Penelitian Universitas Sumatera Utara (USU) Medan to assess the environmental impact (ANDAL) of its mill and estate operations. The ANDAL was revised in 2009 due to change in the mills’ layout and increased producton. Any adverse impacts Identified will be studied for mitigation. Assessment is also being carried out on the environmental management and monitoring (UKL/UPL). PTPN IV has previously assessed its environmental impact in obtaining ISO 14001 certification (for environmental management) for all its three mills and estates. Six-monthly reports of UKL/UPL are submitted to Bapedalda (local environmental controlling body). A documented procedure has been drawn up to revise its environmental documentation with any change in the company activities. Several efforts to reduce the environmental impacts has made, e.g., planting legume cover (Muccuna bracteata sp), planting oil palm in big holes with EFB as mulch / organic fertilizer. 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. SPO management has had a HCV assessment done by Yayasan Kelapa Sawit Berkelanjutan Indonesia (Indonesian Sustainable Palm Oil Foundation). The findings are written up in its report: Penilaian NKT/HCV PTPN IV in July 2010, which also contains recommendations for management

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of the HCV areas. After the report, a public consultation was held for verifying the report and to obtain feedback. The HCV areas / fields are now clearly demarcated for easy identification with no hunting, no fishing, etc. signs.  There are no endangered species, but several protected species, such as 9 birds, 7 mammals and 1 reptile / amphibian, e.g., sparrow (Loncchura leucogastrooides), eagle (Haliastur indus), crow (Corvus enca), burung alap-alap (Accipiter trivirgatus), java chivet (Paradoxurus hermaphroditus), ant eater (Manis javanica), bats (Pteropus vampires). The areas are 51. 45 ha, or 0.7%, in Dolok Ilir estate, 88.3 ha, or 1.53% in Pabatu estate. HCV Team assigned by Estate Managers letter “Surat keputusan No. MU/Kpts-RSPO/124/IX/2010” dated 30.09.2010.” to monitor HCV area. Figure 4 : HCV areas (HCV 6 and 4) clearly sign-posted

Criterion 5.3 Waste is reduced, recycled, re-used and disposed of in an environmentally and socially responsible manner Suitable methods have been established to minimize the production of wastes and to minimize their environmental impacts. Used agrochemical containers are collected in a chemical store – a permanent area sheltered from rain. Prior to storage, the containers are crushed in a manner to prevent re-use. Recyclable wastes, e.g., scrap metal, are collected and sold to recycling outlets. EFB is used to mulch palms in the field. Liquid wastes are treated to reduce their BOD and COD, with their pH regularly measured to the requisite standards. PTPN IV has identified the sources of wastes in mills / estates and listed them in “Daftar Limbah B3 dan Pengelolaannya, dated 01.04.2010 No. FML/MR/07/01”. A procedure, “Pengendalian operasional limbah pabrik dan limbah kebun (PML/MR/07 Rev. 01 (ISO14001)”, has been established to manage wastes from the mills / estates. PTPN IV has a licence to store the wastes in accordance with “Surat Keputusan Menteri Negara Lingkungan Hidup No. 425A /2009”  for 180 days before collection by a licensed waste collector. The records of waste and hazardous material disposal were checked. EFB and POME were used as organic fertilizer for the palms near the mills. Analyses of POME for BOD, COD and pH are done regularly to ensure the parameters meet the standards.

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Criterion 5.4 Efficiency of energy use and use of renewable energy is maximized PTPN IV has a renewable energy program in which it continually strives to improve energy efficiency and use more renewable energy. The boilers are now fired by palm pressed fibre and palm kernel shell to generate steam for generating electricity and processing the fruits. PTPN IV is committed to reduce its use of fossil fuels. In 2010, its efficiency of electricity use was 18.91 kWH/tonne FFB in 2010. The use of diesel for its generator set (1,600 KVA) was 36,530 litres (67% of the total projected in RKAP), for its FFB transport vehicles 9,168 litres (15%) and others (loaders and school bus) 18%, making a total of 54,000 litres. There was 14% down from RKAP 2009 which was 93,600 litres and the realization is 42,443 litres. The generator set is only used as a backup to generate electricity when the main turbine is shut down. 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 PTPN IV has a zero burning policy, and the audit team did indeed find no evidence of burning, confirming implementation of the policy. Wastes from the mills / estates are treated properly by the SPO management. The zero burning policy is stated in a letter from the Production Director, No. 04.03/SE/06/VI/2010 dated 16.06.2010, which is prominently displayed on an information board in each mill / estate. A record of zero burning in replanting 135 ha (1982 planting) in 2009 was sighted. Criterion 5.6 Plans to reduce pollution and emissions, including greenhouse gases, are developed, implemented and monitored Prevention of pollution is part of PTPN IV’s Policy on Health, Safety and Environment (HSE). The committee for HSE (Komite Lingkungan Kesehatan dan Keselamatan Kerja / LK3) has identified pollution and emission sources in “Identififkasi dan Evaluasi Aspek dan Dampak Lingkungan, Tahun 2010, Dokumen FML/MR/07/01”. Pollution in PTPN IV comes mainly from  boilers, generator sets and vehicles. Monitoring of the emission parameters in accordance with the regulations are being planned. The boilers do not yet have emission monitoring equipment, but in the last test complied with the standard. Every 6 months, emissions from the boilers and vehicles for transporting FFB are being tested by Badan Lingkungan Hidup – UPT Laboratorium Lingkungan Medan, an external independent laboratory. The results are recorded in “Laporan Hasil Pengujian No. 49A/BLH.SU-UPT.LL/V/2010”, and also as part of RKL-RPL (Environment Management and Monitoring) Semester Report. The parameters tested for are SO2, NO2, H2S, particulates as per the Ministry of Environment Indonesia regulation “Peraturan Menteri Lingkungan Hidup No. 07 Tahun 2007”. The last record was dated 17.05.2010, sufficiently recent to suggest a continuing practice. Criterion 6.1 Aspects of plantation 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 PTPN IV has a method to monitor social information from the locals in the vicinity 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, at least once a year. Interviews with stakeholders indicated that the practice has resulted in improved relationships with the local communities.

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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 PTPN IV has an effective communication and consultation procedure with independent farmers and its local communities. It has also drawn up an external communication procedure. Consultation with stakeholders is done at least yearly. Adjacent estate officers are responsible for communication with the respective parties on estate activities. The General Affairs Department assumes responsibility for communication and consultation with stakeholders and to ensure that community programs are run effectively. A list of PTPN IV stakeholders includes local communities, NGO, press, labour union (SP-BUN), contractors, women representative, local government: Camat, Police, Military (Muspika: Camat, Kapolsek, Danramil), environmental agency Bapedalda, Ministry of Labour and local press. A series of public consultantions on 24, 26, 28, April 2010 in Pulu Raja, Pabatu and Dolok Ilir to socialize the RSPO P & C for stakeholders, and a following meeting on November 3, 2010 in Pulu Raja were conducted after the RSPO assessment as Corrective Action for NCR T.01/10/10 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 PTPN IV has a complaints, grievance and dispute procedure integrated in its communication procedure, “Prosedur Integrasi Komunikasi dan Konsultasi”, signed by each head of mill / estate, revision 1/06 Agustus 2010. Internal complaints and grievances are resolved according the Mutual Working Agreement, “Perjanjian Kerja Bersama Bab XIII : Penyelesaian Perselisihan Hubungan Industrial”. External complaints and grievances are resolved according to “SOP Komunikasi dan Konsultasi dengan Masyarakat (SPO-03/ Rev.0/ 1 April 2010)” and SPO No.01/ Rev.0/ 1 April 2010. Complaints and grievances about land are resolved according to “Prosedur Penanganan Konflik Tanah dan Lahan “ signed by the Director. These procedures have been communicated to all stakeholders at each mill / estate. It was noted that the responses from stakeholders have been positive. During visits to stakeholders, the audit team confirmed that there were no 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. Criterion 6.4 Any negotiations concerning compensation for loss of legal or customary rights are dealt with through a documented system that enables indigenous people, local communities and other stakeholders to express their views through their own representative institutions In this certification assessment, the audit team studied the whole compensation mechanism, and found its satisfactory and no legal action having been taken by any party. The mechanism has been communicated to stakeholders. Most of land currently under PTPN IV (both mills and estates) are from a Ducth companyestablished 1911 and nationalized by the government in 1958. Some additional land was bought from local communities in 1969 with the records of compensation to Kelompok Tani Wasura kept properly. PTPN IV has a policy and SOP for identifying and calculating the compensation for land signed by the Director on April 1, 2010 (6.4.1). Checks on the records and interviews with local communities confirmed that there is no current claim on any land. Criterion 6.5 Pay and conditions for employees and for employees of contractors always meet at least legal or industry minimum standards and are sufficient to provide decent living wages A policy on pay and working conditions in PTPN IV was signed by a Director on April 1, 2010. The salary scales and conditions of work are described in detail for all the various positions. PTPN IV follows all the legislations on working days, working time, salary levels, regional minimum pay and

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employee insurance. HRD staff inform the workers of their salary adjustments whenever there are amendments to the regional minimum rates (6.5.1). Records were sighted that the pay complied with the regulation in each regency, e.g., in Pulu Raja minimum rate for UMR in Kabupaten Asahan was Rp 1,014,000, while the lowest single employee in PTPN IV earned Rp 1,077,000 /month. In addition, an allowance is given for being married - rice allowance for wife plus for a maximum of three children. The lowest paid employee in Pabatu mill / estate took home Rp 1,024,000 / month well above the Upah Minimum Propinsi Sumatera Utara, Kabupaten Serdang Bedagai in 2010 of Rp. 985,000 / month (6.5.2). All PTPN IV employees are covered by JAMSOSTEK, All workers, if heads of families, are provided their own housing unit. Singles are allotted rooms. The homes receive piped potable water which is tested regularly to the required standard. Potable water is even supplied to nearby villages in several public area. All workers’ housing unit also provided with electricity.(6.5.3). The policy about wages is also socialized in agreements with suppliers / contractors. PTPN IV does not interfere with how the contractors treat their workers, but is generally aware of their terms of employment and would protest to the contractors if any of their workers are being abused. Contractors are required by the terms of their contract to have their workers registered with JAMSOSTEK. with reimbursement for medical expenses. Interviews with contractor harvesters indicated that they were payed piece rate - Rp 30,000 / tonne FFB - plus daily “premi” or incentive, earning an average Rp 1,200,000 – 2,400,000 a month. All the contractor workers are also covered under JAMSOSTEK (6.5.4). There are company medical clinics in each housing location where sick employees / dependents get free treatment. The more serious cases are referred to the company hospital at Pabatu which has doctors and well-trained paramedics. Should the staff / dependents fall sick elsewhere, they are allowed to seek alternative medical care for which they can be reimbursed. On the premises of PTPN IV is only a kindergarten in each location. Nearby, but off the company land, are state schools. No transport is provided the children to go to schools as the distances are very short – within walking / cycling distance. PTPN IV regularly donates to the schools – repair, renovation, etc. – and also offers scholarships to students in need. 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 PTPN IV has an agreement with workers and those in management to allow the establishment labour unions SP-BUN in accordance with the national legislation, UU No. 13 2003. The SP-BUN head and working group are elected every 2 years. There are some female representatives in current the SP-BUN management. 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. A policy on child workers was signed by a Director of PTPN IV on April 1, 2010, and socialized in agreements with suppliers / contractors (6.7.1). No worker under 18 years of age is allowed. Records of personal data of employees - age, marital status, position and rank, location of work, date of commencing employment - are maintained. Checking the records confirmed that no worker under 18 years old was employed - in compliance Indonesian national legislation “UU RI No. 13 Tahun 2003, article 68”. (6.7.2).

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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. PTPN IV is an equal opportunity employer, with promotion mainly based on merit. The Head of General Affairs identifies and recommends candidates for promotion to a selection board at PTPN IV Head Office.. PTPN IV is also committed to providing jobs for the locals. Vacancies are posted on notice boards in the mills / estates, and also advertised in the local newspaper. A policy on equal rights regardless of race, caste, national origin, religion, etc. by a Director of PTPN IV on April 1, 2010 (6.8.1), and the policy socialized in agreements with suppliers/ contractors. It was observed that some females hold high positions in the mills / estates, e.g., Technical Assistant Manager and Assistant Manager of Estates. There were also some females in the labor union management (6.8.2). 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 PTPN IV has a policy on prevention of sexual harassment displayed at various locations in the mill / estate offices. The policy also contains rules for enforcement and is part of the Company’s Social Responsibility approved by a Director on April 1,.2010 (6.9.1). The rules have been explained to all workers to ensure their understanding. Records of the meetings to communicate the policy have been kept and are obtainable in the appropriate places. A Committee on Sexual Harassment has been established to ensure no sexual harassment and other forms of violence against women. The policy of preventing sexual harassment and protecting the 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 every month, pregnant and childbirth leave of 3 months for each instance and also allowed to breastfeed for up to 9 months at least 30 minutes everyday (6.9.2). Interviews with female workers confirmed that they understood the policy and knew the grievance mechanism for complaints, if a female employee sexually harassed by her superior, she will go to any member of the committee (6.9.3), (6.9.4), (6.9.5). Criterion 6.10 Growers and mills deal fairly and transparently with smallholders and other local businesses. PTPN IV has made fair, legal and transparent agreements with its suppliers/subcontractors and independent farmers. There are transactions and purchase contracts with contractors and local companies on sales and purchase of FFB and providing workers. Other contracts also exist for FFB transport and service, maintenance and repair of mill equipment (6.10.1). The price for FFB is determined by the Head Office daily from the CPO and PKO prices. The FFB price payable by the mills is daily conveyed to contractors/ suppliers by short messages from the Production Manager. The independent farmers and contractors are independent, and not bound in any way to sell only to PTPN IV. The auditor checked that the FFB price on 25 October 2010 was Rp 1,550/kg to Rp 1,670/kg, depending on distance to the mill - higher than those offered by three private mills in the vicinity (6.10.2). There is an SOP for engaging contractors, which includes pre-qualification, selection criteria and evaluation. PTPN IV does not deal with individual farmers / outgrowers, and all its contractors / business entities have to own a NPWP, or registered tax number, and passed the selection process for registration in a list of approved contractors by its Head Office. Contracts are explained during the pre-qualification process and the winning contractor has to sign his acceptance of the PTPN IV terms and conditions, which include requirements for safety, labor regulations, wearing of PPE and being an equal rights employer. Documents were sighted and interviews with some contractors

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confirmed that they understood the terms of their contracts well and thought them was fair, legal and transparent (6.10.3). Payment to contractors was always on time as evidenced by the lack of complaints by the contractors/ suppliers (6.10.4).  If they feel they are not receiving a fair price they have been informed of a procedure “ Prosedur Integrasi Komunikasi dan Konsultasi, revision 1/06 Agustus 2010” –signed by each head of mill / estate, in which they can take up their grievance if they are not satisfied with their FFB price. However, interviews with the contractors and some independent farmers found no grievance about the price. Criterion 6.11 Growers and millers contribute to local sustainable development wherever appropriate PTPN IV is committed to support sustainable development of the local communities through its Community Development and Corporate Social Responsibility programs. Identification of projects is based on community needs, the priorities of each mill / estate and the budget available. Contributions have been made to infrastructure (buildings, repairs of schools / mosques / churches, road maintenance, potable water supply for bathing and washing), free medical treatment for minor diseases, mass circumcision for young boys (sunatan masal), cataract treatment for older people, skills training in agricultural practices, tree planting and financial loans for pedestrian tractors. The Auditors have checked the reports and visited some locations on site. and confirmed Criterion 7.1 to 7.7 N/A This requirement is not applicable as there has been no new planting in these three mills and three estates. 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. PTPN IV has committed to a process of continuous improvement by adopting the RSPO P & C and getting certified for its integrated management system - QMS ISO 9001, EMS ISO 14001 and SMK3. An internal audit and management review is done at least yearly to evaluate the systems. Action plans have been developed for the next one to three years for continuous improvement in key operations through quality and environmental objectives for every mill and estate. The records for reducing paraquat (gramoxone) use were inspected and the reduction is 50% from 2009. There is increased use of EFB and effluent as organic fertilizer for the palms at 20 tonnes/ha EFB for immature plantings, and 40 tonnes/ha for mature plantings, and effluent at 750 m3/ha/year. PTPN IV also tries to minimize its green house gas emissions by its estates by methane capture in a CDM program.

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3.2 Detailed Non-Conformity Report, Corrective Action Taken, and Auditors’ Conclusion Non Conformity Report – T01.10/10  29.10.2010  Date issued  Pulu Raja POM  Location  RSPO – Criterion : 1.1 

NCR issued by Discussed with

: Hasnop Putra  : Managers and staff 

Oil palm growers and millers provide adequate information to other stakeholders on environmental, social, and  legal issues relevant to RSPO Criteria, in appropriate languages & forms to allow for effective participation in  decision making. 

Description of Finding:  SPO PTPN IV did not provide adequate information to  its stakeholders  on environmental, social, and legal issue  relevant to RSPO criteria during stakeholder meeting on April 24, 2010. Minute of meeting did not recorded  properly. 

    Classification 

 

Major 

 

Minor 

Corrective Action Taken:      Date of implementation: 20 November 2010    ‐ A public consultation was conducted in Pulu Raja on April 24,  2010, followed by a bigger with more  stakeholders on November 3, 2010.   ‐ List of stakeholders attending the meeting, hand out of presentation and minutes of the meeting  attached. 

 

 

 

 

Auditee signature:      Auditor Comments:    Corrective action taken by the organization verified and accepted from the documentation submitted.   Records of public consultation meeting submitted. The effectiveness of the  corrective action taken will  be assessed in the next surveillance audit. This verification of corrective action was done in TUVNORD  Indonesia office  Auditor Comments and Conclusion      To check in next verification visit       Appropriate action not taken    requirement      Date of verification: January 2011     

Appropriate action taken  Corrective action in compliance with the 

Auditor(s) signature: 

Mr. Hasnop Putra 

Page 29 of 51

Non Conformity Report – T02.10/10  29.10.2010  Date issued  Dolok Ilir POM  Location  RSPO – Criterion : 4.1 

NCR issued by Discussed with

: Hasnop Putra  : Managers and staff 

Operating procedures are appropriately documented and consistently implemented and monitored. 

Description of Finding:  No monitoring plan and records of palm oil mill maintenance / service of CPO bulk tanks.  Cleaning  and calibration records for tanks no 1. & no. 3. in 2009, cleaning for tank no.2 in 2010  ;  

    Classification 

 

Major 

 

Minor 

Corrective Action Taken:      Date of implementation: 01 November 2010  ‐ Cleaning of CPO bulk tanks done with records and documentary evidence kept and attached.   ‐ Cleaning program drawn up until 2015, with regular monitoring. 

Auditee signature: 

   

   

 

 

 

Auditor Comments:    Corrective action taken by organization evidenced by documentation submitted ‐   Records of cleaning CPO bulk tanks. The effectiveness of this corrective action will be assessed in the  next surveillance audit. 

Auditor Comments and Conclusion      To check in next verification visit       Appropriate action not taken    requirement      Date of verification: January 2011     

Appropriate action taken  Corrective action in compliance with the 

Auditor(s) signature: 

Mr. Hasnop Putra 

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Non Conformity Report – T03.10/10  29.10.2010  Date of issued  Pabatu POM  Location  RSPO – Criterion : 4.6 

NCR issued by Discussed with

: Hasnop Putra  : Managers and staffs 

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 categorized as World Health Organization Type 1A or 1B, or are listed by the Stockholm or  Rotterdam Conventions, growers are actively seeking to identify alternatives, and this is documented. 

Description of Finding:  The recommendation of agro‐chemical used is not implemented accordingly. The quantity of agro chemical applied  is over the SOP of agro‐chemical recommended for 0.35 cc/ ha, and its realized 0.50 cc/ ha in June 2010. There was  no clear information for notification changes of agro‐chemical apply. 

  Classification 

 

Major 

 

Minor 

Corrective Action Taken:      Date of implementation: 04 November 2010  ‐ The increased herbicide use in June 2010 was due to excessive weed growth.  A letter was sent  from Estate Manager to the Production Director that this was an abnormal situation, and that  excessive herbicides should not be used.  ‐ Data of reduced herbicide use is attached.    

 

 

Auditee sign:    Auditor Comments:    The  corrective  action  was  accepted  with  new  records  of  agrochemical  use  submitted.    The  effectiveness of the corrective action will be checked in the next surveillance audit. 

Auditor Comments and Conclusion      To check in next verification visit       Appropriate action not taken    requirement      Date of verification: January 2011     

Appropriate action taken  Corrective action in compliance with the 

Auditor(s) signature: 

Mr. Hasnop Putra 

Page 31 of 51

Non Conformity Report – T04.10/10  NCR issued by Discussed with

29.10.2010 Date issued  Pulu Raja POM & Estate Location  RSPO – Criterion : 4.6

: Hasnop Putra  : Managers and staffs 

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 categorized as World Health Organization Type 1A or 1B, or are listed by the Stockholm or  Rotterdam Conventions, growers are actively seeking to identify alternatives, and this is documented..

Description of Finding: There was no records of results of health check‐up for those who apply agrochemicals, especially  women workers who works at Afdeling I of  Pulu Raja plantation.  

  Classification 

 

Major 

 

Minor 

Corrective Action Taken:      Date of implementation: 01 November 2010    ‐ Letters were sent to all contractors to provide medical checkup for their workers as required in the terms and  conditions of their contracts.   ‐ All women workers were medically checked by November 1, 2010 , with the ir medical test results attached.   

Auditee sign: 

   

 

 

    

 

Auditor Comments:    Corrective  action  taken  by  the  organization  verified  and  accepted  with  medical  test  results  submitted.  The  effectiveness of the corrective action will be assessed in the next surveillance audit. 

Auditor Comments and Conclusion      To check in next verification visit       Appropriate action not taken    requirement      Date of verification: January 2011     

Appropriate action taken  Corrective action in compliance with the 

Auditor(s) signature : 

Mr. Hasnop Putra 

Page 32 of 51

Non Conformity Report – T05.10/10  29.10.2010  Date issued  Pulu Raja POM & Estate Location  RSPO – Criterion : 4.7 

NCR issued by Discussed with

: Hasnop Putra  : Managers and staff 

An occupational health and safety plan is documented, effectively communicated and implemented  

Description of Finding:  On 11 September 2010,  there were 12 sprayers working in Afdeling I of which only 6 wore PPE. 

 

Classification 

 

Major 

 

Minor 

Corrective Action Taken:              Date of implementation: 01 November 2010  ‐ Notification has been sent to all contractors that all their sprayers are required to wear PPE at work  as per the terms and conditions of their contracts.   ‐ All sprayers have now been issued PPE and wearing them.  The received evidence is attached.  ‐ A foreman has been appointed to ensure that PPE is worn.   

Auditee signature:   

 

     

 

 

 

Auditor Comments:    Corrective action taken has been verified by the evidence submitted ‐ records monitoring use of PPE.  The effectiveness of the corrective action will be assessed in the next surveillance audit. 

Auditor Comments and Conclusion      To check in next verification visit       Appropriate action not taken    requirement      Date of verification: January 2011     

Appropriate action taken  Corrective action in compliance with the 

Auditor(s) signature: 

Mr. Hasnop Putra 

 

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Table 7: Summary of findings by RSPO Criterion

Audit type Criterion 1.1 1.2 2.1 2.2 2.3 3.1 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 5.1 5.2 5.3

Audited

Certification Assessment Complia Major nce No 1 Yes Yes Yes Yes Yes No Yes Yes Yes Yes No 1 No Yes Yes Yes Yes

Minor

No of NC 1

1

1

1 1

2 1

Audit type

Certification Assessment

Complia Major nce 5.4 Yes 5.5 Yes 5.6 Yes 6.1 Yes 6.2 Yes 6.3 Yes 6.4 Yes 6.5 Yes 6.6 Yes 6.7 Yes 6.8 Yes 6.9 Yes 6.10 Yes 6.11 Yes 7.0 N/A 8.1 Yes Total of Nonconformities 2 Criterion Audited

Minor

No of NC

3

5

3.3.1. Noteworthy observations − All the three mills and three estates have been certified to QMS ISO 9001, EMS ISO 14001 and SMK3, making it easier for PTPN IV to progress towards RSPO Certification. − PTPN IV maintains a 50 m riparian strip along its rivers as conservation area. − PTPN IV has a zero burning policy for prevention of fire in its estates. − Fire fighting facilities and equipment are provided, and drills conducted regularly. − The RSPO management unit of PTPN IV has place high priority on protection of identified HCV areas by Yayasan Kelapa Sawit Berkelanjutan Indonesia (Indonesian Sustainable Palm Oil Plantation). − EFB is used for mulching in the fields. Similarly, treated POME is applied to the fields as fertilizer / irrigation. − PTPN IV provides potable water for employees and local communities, and electricity for its employees. − The PTPN IV Community Development and CSR programs, such as providing potable water, renovation of worship places, etc., have improved its relationships with the local communities.

Figure 5. Realization of CSR/ Community Development Program

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3.3.2. Some Recommendations for Improvement to the Mills and Estates: 1. The use of EFB as mulch should be recorded in more detail for each oil palm in KRT (Kartu Riwayat Tanaman) / plant historical chart, not only the total EFB. 2. Socialization of protected species should be done in attractive posters / leaflets with pictures or photographs and an explanation in the local language(s). 3. The electricity use efficiency for processing FFB over the years should be plotted in a graph for easier visualization of with trend. 4. Evaluation of tenders should not only be based on the price and quality / quantity specifications, but also on how well the contractors follow the PTPN IV policy on RSPO P & C which had been included in contracts since last year. 3.4.1 Issues raised by stakeholders and findings of the assessment team The audit team did not receive any major issues and comments for consideration from the stakeholders meeting on environmental impacts or social performance of the mill and estate operations. Most of stakeholders agreed that PTPN IV has had a positive influence in the area. Interviews were used to obtain feedback – whether positive or negative - from stakeholders, for which. the audit team had prepared some questions. The questions are given in Section 2.10. Figure 6 : Stakeholder meeting

Stakeholders’ meetings (on April 24, 26 and 27, 2010) were conducted by PTPN IV to obtain feedback - positive or negative – on its RSPO Certification Assessment. The minutes were taken along with PTPN responses to the queries made. Most of the stakeholder comments on RSPO certification were positive. The comments are shown below. Local Communities ƒ Support PTPN IV for RSPO certification so that PTPN can be more environmental, but can it pay monthly support for transportation. ƒ Riparian areas should be planted with fruitful trees to prevent erosion and floods during the rainy season. ƒ Animal grazing is prohibited in PTPN IV estate, why?. ƒ There is a heroes’ graveyard in Persatuan Village that needs to be protected. ƒ Effluent is discharged to the river near Silaula. Has this any detrimental effect on the water for human use? PTPN IV Response : ƒ Will be discussed in other forums. PTPN IV has some funds available for social activities in its Community Development and CSR programs. The proposal for asking donation shall be in written as required by SOP ƒ PTPN IV has a procedure to protect riparian areas. There is a long-term program to plant bamboo along the river banks. ƒ Population of cattle increase excessively in recent years, they can spread diseases and destroy young oil palms because they were grazing inside estate without controlled from their owner/ shepherd ƒ The graveyard is already identified as HCV 6. Page 35 of 51

ƒ

The effluent is POME treated to the required standards for discharge. It should therefore not be detrimental to the water for human use.

Headmaster of Local School ƒ Many students from poor families need scholarships. PTPN IV Response ƒ Will be discussed in other forums. PTPN IV has some funds available for social activities in its Community Development and CSR programs. The proposal for asking donation shall be in written as required by S Local government : Police ƒ There is only one policeman in one estate which is insufficient to cover the area. PTPN IV Response To be evaluated later. Contractors ƒ No issues raised. NGOs ƒ Can PTPN IV get RSPO certification? Is there any oil palm company in Indonesia already RSPO certified? How could they have got RSPO certification considering many land disputes with local communities? PTPN IV Response ƒ PTPN IV will do its best to obtain the certification. Press/ Local Media (“Radar”) ƒ What benefits are there for stakeholders / communities if PTPN IV gets RSPO certification since it already has its Community Development and CSR programs? PTPN IV Response ƒ RSPO certification can increase the price of its CPO as it will then be ‘sustainable’. Adhering to the RSPO P & C would ensure that the environment is sustainable. Worker Union/ Female Workes ƒ No issues raised 3.4.2. Attendance list for stakeholders’ meetings Pulu Raja: 24 April 2010, Pabatu: 26 April 2010,Dolok Ilir : 27 April 2010 No Name Position 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

M. Rusli Hendra Pasaribu Yeswardi AKPK Manurung Juari Dollin P. Siregar Irawati Firman Tambunan Masdi Manurung Syamsudin Sitorus Ucok Simargolan GN Sirait Musa Khalik Nst Nurti Aritonang M. Nur Hutabarat Hanif Soekasman MT. Siregar R. Handy Oktaruna Purwo Susanto

Pangulu Bandar Selamat NGO School teacher Pangulu Huluan Kapolsek Serbelawan Pangulu Bahung Kahean Sekcam Sekcam SMP Yapedi Harian Radar Ka Des Tunggul Manurung Harian Sangkakala Harian Garuda Pos PAPAM Ka Des Damar Ka Des Pabatu Pabatu Manager/ Head of Mill & Estate Pulu Raja Manager/ Head of Mill & Estate Dolok Ilir Manager/ Head of Mill & Estate Head Office YASBI

Remarks Local Community NGO Local Community Local Community/ Independent farmer Police/ Government Local Community Local chief/ Government Local chief/ Government School teacher (women representative) Local Media/ NGO/ Independent farmer Chief Village/ Government Local Media Local Media PTPN IV worker Chief Village/ Government Chief Village/ Government/ Women Repr. PTPN IV PTPN IV PTPN IV PTPN IV Consultant RSPO Page 36 of 51

3.5 Certified organization’s acknowledgement of internal responsibility Please sign on the certification assessment and confirm acceptance of the assessment report, including the findings. The company General Manager and Senior Manager will sign for the certification assessment report. Complete signatures are shown in section 3.6. 3.6 Formal sign-off of assessment findings

Medan 26.01.2011

Head of Planning Department/ Management Reperesentative PT. Perkebunan Nusantara IV (Persero)

M. A. Ghani Signed for and on behalf of PT. TÜV NORD Indonesia – System Certification Management Jakarta 26.01.2011

- Lead Auditor

: Hasnop Putra

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Annex – A : Figure Maps of PTPN IV Mills & Estates

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Figure A1. Map of Pabatu

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Figure A2. Map of Dolok Ilir

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Figure A3. Map of Pulu Raja

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Annex – B1 : Draft of RSPO Certificate

C E R T I F I C A T E In accordance with TÜV NORD Indonesia procedures, a certificate is hereby awarded

PT. Perkebunan Nusantara IV Head Office: Jl. Letjen Suprapto No.2 Medan 20151 – Indonesia

Pabatu Palm Oil Mill Mill Location Kabupaten Serdang Bedagai, Propinsi Sumatra Utara - Indonesia

GPS location Longitude (E) Latitude (N) 99° 06' 38.4"

03° 17' 17.04"

In recognition of the fact that it applies a Sustainable Palm Oil Management System according with the 2008 National Interpretation of RSPO Principles and Criteria for Sustainable Palm Oil Production of Republic of Indonesia in production of the following volumes of CPO and PK:

Production of Crude Palm Oil and Palm Kernel CPO Tonnage Total Production

23,805.48 t

CPO Tonnage Claimed

23,805.48 t

Palm Kernel (PK) Tonnage Total Production

4,842.26 t

Palm Kernel (PK) Tonnage Claimed

4,842.26 t

Certificate Registration No: TNI –RSPO 006.2010 Audit Report No. SPO-ID10003 Issued date of Certificate : RSPO approval dateValid Certificate : President Director This certification was carried out in accordance with the TÜV NORD Indonesia auditing and certification procedures and is subject to regular surveillance audits. PT. TÜV NORD Indonesia is a subsidiary of TÜV NORD CERT GmbH Langemarckstrasse 20 D - 45141 Essen, Germany

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Annex to Certificate – RSPO (Supply Base) Certificate Registration No: TNI-RSPO 006.2010 Following scope of certification Mill and Supply base cover are

Estate

Pabatu (PABE)

Location

Kabupaten Serdang Bedagai, Propinsi Sumatra Utara - Indonesia

FFB Production (tonnes)

95,776

GPS Coordinates Longitude (E)

Latitude (N)

99º 07 ′ 16.25 “

03º 18 ′ 00 ′′

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Annex – B2 : Draft of RSPO Certificate

C E R T I F I C A T E In accordance with TÜV NORD Indonesia procedures,a certificate is hereby awarded

PT. Perkebunan Nusantara IV Head Office: Jl. Letjen Suprapto No.2 Medan 20151 – Indonesia

Dolok Ilir Palm Oil Mill Mill Location Kabupaten Simalungun, Propinsi Sumatra Utara - Indonesia

GPS Coordinates Longitude (E) Latitude (N) 99º 09 ′ 42.13 ′′

03º 07 ′ 20.27′′

In recognition of the fact that it applies a Sustainable Palm Oil Management System according with the 2008 National Interpretation of RSPO Principles and Criteria for Sustainable Palm Oil Production of Republic of Indonesia in production of the following volumes of CPO and PK:

Production of Crude Palm Oil and Palm Kernel CPO Tonnage Total Production

36,016 t

CPO Tonnage Claimed

36,016 t

Palm Kernel (PK) Tonnage Total Production

9,966 t

Palm Kernel (PK) Tonnage Claimed

9,966 t

Certificate Registration No: TNI –RSPO 007.2010 Audit Report No. SPO-ID10003 Issued date of Certificate : RSPO approval dateValid Certificate : President Director This certification was carried out in accordance with the TÜV NORD Indonesia auditing and certification procedures and is subject to regular surveillance audits. PT. TÜV NORD Indonesia is a subsidiary of TÜV NORD CERT GmbH Langemarckstrasse 20 D - 45141 Essen, Germany

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Annex to Certificate – RSPO (Supply Base) Certificate Registration No: TNI-RSPO 007.2010 Following scope of certification Mill and Supply base cover are

Estate

Dolok Ilir (DOIE)

Location

Kabupaten Simalungun, Propinsi Sumatra Utara - Indonesia

FFB Production (tonnes)

GPS Coordinates Longitude (E)

Latitude (N)

151,263

99º 10 ′ 58.86 ′′

03º 13 ′ 44.15 ′′

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Annex – B3 : Draft of RSPO Certificate

C E R T I F I C A T E In accordance with TÜV NORD Indonesia procedures, a certificate is hereby awarded

PT. Perkebunan Nusantara IV Head Office: Jl. Letjen Suprapto No.2 Medan 20151 – Indonesia

Pulu Raja Palm Oil Mill Mill Location Kabupaten Asahan, Propinsi Sumatra Utara Indonesia

GPS Coordinates Longitude (E) Latitude (N) 99º 37 ′ 21.06′′

02º 41′ 47.20′′

In recognition of the fact that it applies a Sustainable Palm Oil Management System according to the 2008 National Interpretation of RSPO Principles and Criteria for Sustainable Palm Oil Production of Republic of Indonesia in production of the following volumes of CPO and PK:

Production of Crude Palm Oil and Palm Kernel CPO Tonnage Total Production

20,977 t

CPO Tonnage Claimed

20,977 t

Palm Kernel (PK) Tonnage Total Production

4,551 t

Palm Kernel (PK) Tonnage Claimed

4,551 t

Certificate Registration No: TNI –RSPO 008.2010 Audit Report No. SPO-ID10003 Issued date of Certificate : RSPO approval dateValid Certificate : President Director This certification was carried out in accordance with the TÜV NORD Indonesia auditing and certification procedures and is subject to regular surveillance audits. PT. TÜV NORD Indonesia is a subsidiary of TÜV NORD CERT GmbH Langemarckstrasse 20 D - 45141 Essen, Germany

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Annex to Certificate – RSPO (Supply Base) Certificate Registration No: TNI-RSPO 008.2010 Following scope of certification Mill and Supply base cover are

Estate

Pulu Raja (PURE)

Location

Kabupaten Asahan, Propinsi Sumatra Utara - Indonesia

FFB Production (tonnes)

GPS Coordinates Longitude (E)

Latitude (N)

87,852.

99º 40 ′00”

02º 42 ′ 58.28 ′′

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Annex – C : Certification Assessment Plan Client:

PT. PERKEBUNAN NUSANTARA IV (PERSERO)

Address:

Jl. Let.jend Suprapto No. 2 Medan 20151, Sumatera Utara - Indonesia

MR Name, Pos.:

Mr. M.A. Ghani (Kabag Perencanaan), Mr. Setiawan Tarigan, Mr. Handy Oktaruna (Kaur Perencanaan)

Number of Mills:

3

Number of estate(s):

Mill(s) Location -

3

Order No.

-

Business No.

Estate(s) Location

Pabatu POM, Kab. Serdang Berdagai, 1. Sumatera Utara; 2. 3. Dolok Ilir POM, Kab. Simalungun, Sumatera Utara; Pulu Raja, Kab. Asahan, Sumatera Utara

Pabatu Estates, Kab. Serdang Berdagai, Sumatera Utara Dolok Ilir Estates, Kab. Simalungun, Sumatera Utara Pulu Raja Estates, Kab. Asahan, Sumatera Utara

Standard:

RSPO P&C (Principles & Criteria) May 2008;

Type of audit:

Initial Assessment

Audit date:

25-29.10.2010

Lead Auditor:

Hasnop Putra (HAP)

Trainee / Expert:

Dr. Hariyadi (HA)

Auditor(s):

Wieke Savitri (WS)

Audit days on-site:

5 days

Date / Time

1)

-

Site / Shift / Organizational Unit

Auditor (Abbrev.)

Interviewpartner

Requirements

2)

Day – 1: 25.10.2010 Æ Traveling to site Day – 2: 26.10.2010 Æ Pulu Raja POM & Estate 09:00-09:15

Opening meeting

Introduction team and fine tune audit plan (if necessary) -

09:15 – 12:00

-

HAP, WS, Sites: Pulu Raja POM HA Office

RSPO team -

General issues for RSPO certification assessment SPO documentation 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

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-

13:30 – 17:00

POM & Estate Operations

HAP, WS, HA

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 Date / Time

Site / Shift / Organizational Unit

1)

Auditor (Abbrev.)

Interview2) partner

Requirements

Days – 3: 27.10.2010 Æ Traveling to site l Dolik ILir POM (HAP); Pabatu POM (WS, HA) Days – 4: 28.10.2009 Æ Dolik Ilir POM & Estate 09:00-09:15

Opening meeting

HAP

RSPO team

Introduction team and fine tune audit plan (if necessary) -

09:15-12:00

Sites: Dolok Ilir POM office

HAP

RSPO team -

General issues for RSPO certification assessment SPO documentation and records Environmental Policy Justification for RSPO principles and criteria Principle – 1: 1.1, 1.2 Principle - 2: 2.1 Principle – 3: 3.1 Legal aspects related to SPO management Involved personnel and responsibilities Socio economic impacts on the local population

12:00 -13:30 Break and lunch 13:30 – 17:00

−

POM & Estate operations

HAP

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 – 1: 1.1, 1.2 Principle - 2: 2.1 Principle – 3: 3.1 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

17:00: End of assessments

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Date / Time

Site / Shift / Organizational Unit

1)

Auditor (Abbrev.)

Interviewpartner

Requirements

2)

Days – 4: 28.10.2010 Pabatu POM & Estate (WS, HA) 09:00-09:15

Opening meeting

WS

RSPO team

Introduction team and fine tune audit plan (if necessary) -

09:15-12:00

Sites: Pabatu POM Office

WS, HA

SMM-RSPO team -

General issues for RSPO certification assessment SPO documentation and records Environmental Policy Justification for RSPO principles and criteria Principle – 1: 1.1, 1.2 Principle - 2: 2.1 Principle – 3: 3.1 Legal aspects related to SPO management Involved personnel and responsibilities Socio economic impacts on the local population

12:00 -13:00 Break and pray -

13:00 -17:30

−

POM & Estate Operations

WS, HA

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 – 1: 1.1, 1.2 Principle - 2: 2.1 Principle – 3: 3.1 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

17:30 end of Day 3 assessments Æ continue traveling to Medan for overnight stay at Hotel Asean Days – 5: 29.08.2010 Head Office 07:30 – 08:0

Reporting and HAP, WS, presentation audit finding HA

08:30

Travelling to airport

RSPO team Closing Meeting

End of initial assessment RSPO audit

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