Productprocess parameters 2. Summary Of The Findings by Criteria 1

SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES Sucofindo ICS FRM 3.04 Issue 04 Rev. 6 30of 77 Processed raw materials in 2012 is 259,079.04 MT with following details: Own estates: 114,877.67 MT 44.34 External : 144,201.37 MT 55.66 The quality of produced CPO in 2012 is as follows: Moisture water content = 0.20 Impurities = 0.022 FFA = 4.56 The quality of produced PK in 2012 is as follows: Moisture water content = 6.23 Dirt impurities = 7.10 OER : 26.18 KER : 4,25 Implementation of processing are recorded on daily report. Quality control for CPO and PK is recorded in a log sheet. Production data for February 2013 shows processed with a total of 27,846.58 ton, CPO output = 7,004.61 tons and PK = 1,186.15 tons. PKS mill utility in February 2013 was 96.69.

a. Productprocess parameters

To ensure that the product meets the specification and the process runs properly, sampling and analysis are conducted as follows : Boiling and thressing 3 peak boiling is used, the first peak is at 1.5 bar, the second at 2.5 bar and the third at 2.8 – 3 bar of graphic sterilizer for approximately 30 minutes. Following the thresser empty fruit bunch sample is taken and a standard maximum of 2.5 unstrip bunch is analyzed. This is done, among others, to know how well the boiling process is; high unstrip bunch may indicate incomplete boiling process that leaves significant SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES Sucofindo ICS FRM 3.04 Issue 04 Rev. 6 31of 77 quantity of fruits unstripped. Oil content of empty bunch is analyzed after thressing with standard maximum of 1.8 percent. This is to ensure that condensate removal process takes place properly, otherwise there will be filled with condensate. Condensate is currently not sampled because it is reused as dilution water. Extraction Cake palm fiber mixed with nut after pressing sample is also collected. Parameter measured is fiber dry base oil with standard not exceeding 7 , nut oil loss with standard not exceeding 1 , as well as broken nut with standard of 14. Both are aimed to see whether pressing pressure has been optimum. Pressing with too low pressure will result in high fiber oil content, while too high pressure will produce broken nut in considerable extent. The current pressure norm is 50 psi. Purification Samples are also taken at vibrating screen to ensure that correct ratio of oil to water composition that serves as basis for dilution to facilitate oil and water separation at CST continous settling tank. Parameters analyzed are water content that is maintained at 20 – 30, and oil that is maintained at 40 . Samples are also taken in the underflow, the content of oil should be 10 to ensure that more sludge is to be separated later at sludge separator. To ensure that sludge centrifuge work properly, sludge samples are taken after sludge centrifuge. Sludge oil content after centrifuge should be less than 12 , meaning that the equipment works properly in separating oil from sludge. Sample is taken after vacum drier for FFA to know the quality of oil product. Water content before and after vacum drier is examined to ensure normal vacuum drying process. CPO final quality is known from FFA, water content and impurities parameters. Samples are taken from Oil storage tank 2 and 3. Nut processing Nut shells are broken at ripple mill. To know the ripple mill efficiency, samples are extracted from ripple mill output. Whole nut, broken nut, whole kernel and broken kernel are SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES Sucofindo ICS FRM 3.04 Issue 04 Rev. 6 32of 77 measured. This is intended to know or adjust ripple mill tightness; if it is too close together then there will be more broken nut and broken kernel resulted, but if it is too loose there will be more whole nut. Nuts that have been broken into shell and kernel are then separated at winower LTDS; shells will be sucked, whereas kernel will pass through it. Because there are shells still carried with kernel, separation is once again performed using hydro cyclone. Samples are taken after hydro cyclone and before entering kernel silo. In the hydro shell sample is taken for broken kernel, with a standard of not higher than 1 percent. This is to know the extent of broken kernel carried with shells.

b. Utility