3. 1. General Overview Public Summary of KDA LNGM

SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES Sucofindo ICS FRM 3.04 Issue 04 Rev. 6 16of 135 HCVF, Tropenbos International Indonesia Program, The Nature Conservancy TNC, WWF Indonesia Institut Pertanian STIPER INSTIPER Yogyakarta, Yogyakarta, Indonesia 2011. B.3. Assessment Methodology

B. 3. 1. General Overview

The assessment was carrying out in conformity with the SBU SICS RSPO manual and procedures for auditor and certifier. The assessment was conducted by qualified auditors and referred to RSPO standard as endorsed for the Indonesia National interpretation, RSPO Certification System, RSPO SCC Standard and RSPO SCC System. Partial certification audit will be conducted separately to check compliance with Final RSPO Certification System for partial certification. The opening and closing meeting was conducted at the Office Bangko Estate-Jambi and then continue in Mill‟s and estate‟s offices. Stakeholders meeting was conducted twice, firstly was held during preliminary assessment and secondly during Certification audit. At the opening meeting, the team audit confirm to conduct the audit at : Office at Bangko Estate  Review the company‟s response for previous findings  Documentation review for transparencies  CSR plan and policy  Internal Audit program Management Review Meeting  Land ownership and compensation mechanism  Documentation of RSPO‟s requirement refers to P C At estate, include :  Worker interviews :OSH. Sexual, religious, racial harassment. Payment scheme, contracts. Child labor. First aid. Awareness.  Chemical stores :Storage. MSDS leaflets. Herbicide mixing areas. PPE. Ventilation. Security.  Field inspections: Fertilizingoperations. SOP‟s., Herbicide application program.Harvesting sites and efficiency. Soil maps. Land preparation. Ground cover. IPM. First aiders and SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES Sucofindo ICS FRM 3.04 Issue 04 Rev. 6 17of 135 boxes. Soil erosion.  HCV‟s :Identification. Management plans. Environmental Impact Assessments  Riparian zones :Width. Current and future management, monitoring system  Water management :Water courses. Water monitoring.  Road maintenance :Program and progress of road improvement.  Social amenities :Social Impact Assessments.  Workshops :Oil traps. Safe working environment. PPE.Diesel tanks. Environmental waste management.  Line sites :Interviews with householders. Inspection of water discharge points. Water improvement plans. Waste disposal.  Local communities. Contributions made. Employment opportunities. Social impacts. Complaints procedures, Transparency. At Mill include :  Mill and workshop inspections.  Documentation.  Worker interviews. SOP‟s. Safe working environment. Gen sets. Walk ways. Signs. EFB. POME treatment. Emissions. Mass balance. Diesel tanks. PPE. Fire extinguishers. First aiders and boxes. Fuel and water usage.  OSH. Training. Management structure. First aiders.  Full document review. Completion of the checklist. Review and documentation of evidence. All aspects of RSPO PC‟s applicable.  Worker interviews. OSH. Sexual, religious, racial harassment. Payment scheme, contracts, union labor.  Supply Chain Certification System : Incoming FFB data input, CPOPK out goingdispatched database, marking, certified CPO PK reporting, Document Control and related procedures. SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES Sucofindo ICS FRM 3.04 Issue 04 Rev. 6 18of 135 Actual Audit Programme Phase I : Prelimenary Audit DateTime Functions areas Department activities to be audited include related requirements Auditors 30092013 1 st Day 05.45 Departure from Jakarta to Jambi Team 07.30 Departure from Jambi to Site Team

17.30 End of the day 1

01102013 Day 2 nd Audit 08.00 Location: Kresna Duta Agroindo Office Opening Meeting at Site - Arrangements Schedule Auditor vs auditees - Arrangements location mill, estate and stakeholders to be visited All

08.30 Document Review of :

- Worker welfare, Union, stakeholders - Transparenciescommunication, CSR program - Legality Document Review of : - Management Aspects Internal audit, MRM, Training, Jobdesc - Environment Aspect Document Review of : - Best Practices - OSHASSMK3 Document Review of : - Legality - HCV TSS GIA NZ GGU

12.00 Break

Field visit Jelatang Mill - PT. Kresna Duta Agroindo TEAM

17.00 End of the day 2

SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES Sucofindo ICS FRM 3.04 Issue 04 Rev. 6 19of 135 02102013 Day 3 rd Audit 08.00 Kresna Duta AgroIndo, Bangko Estate Environment Aspects : Water management Water courses, water monitoring; Environment waste management, Environmental Impacts;Chemical store Block B08 Division 5 BNGE GIA HCV Aspects : HGU and Land Status Estates confirmation, Riparioan zone, HCV confirmation Plantation Aspects : Herbicide Application Programme, Integrated Pest Management, Harvesting site, Fertilizing Operations, Land Preparation and Assessment Block B04 Division 5 BNGE GGU Social Aspects: Meeting Stakeholders TSS Worker Welfare: Housing, Clinic, Labour Union, Koperasi, Worker welfare NS 12.00 Break All Visit Langling Mill Jelatang Mill- PT. Kresna Duta Agroindo TEAM

17.00 End of the day 3

03102013 Day 4 th 08.00 Reporting Team

12.00 Break

Team 14.00 Closing Meeting All 16.00 End of Closing Meeting All 16.30 Departure from Site to Jambi All 04102013 Day 5 th 08.00 Departure from Jambi to Jakarta All Number of assessor participating : 4 auditors, totally 4 person Number of days spent for the assessment on site : 5 days Total number of person days used for the assessment on site :20 days SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES Sucofindo ICS FRM 3.04 Issue 04 Rev. 6 20of 135 Phase II : Certification Audit DateTime Functions areas Department activities to be audited include related requirements Auditors 18 Nop‟13 1 st Day 05.45 Departure from Jakarta to Jambi Team 07.30 Departure from Jambi to Site Team 13.00 Break Lunch 14.00 Arrive at site 14.30 Opening Meeting at Kresna Duta Agroindo Office - Introduction by Team Leader - Arrangements Schedule Auditor vs auditees All 15.30 Audit Partial of PT. KDA Team

16.30 End of the day 1

19 Nop‟13 Day 2 nd Audit Location: Kresna Duta Agroindo Office

08.00 10.00

See the previous findings and Audit Against the Rules for Partial Certification Documentation Review of : - Worker welfare, Union, stakeholders - SIA, CSR Documentation Review of : - Management Aspects Internal audit, MRM, Training, Jobdesc - SMK3 OSHAS Aspect - Worker welfare Documentation Review of : - Environment Aspects - Best Practices Mill Documentation Review of : - Legality - HCV Biodiversity - Best Practices Estate Team TSS NZ RQ GGU

12.00 Break

13.30 Continue audit for documentation

TEAM 17.00 End of the day 2 SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES Sucofindo ICS FRM 3.04 Issue 04 Rev. 6 21of 135 20 Nop’13 Day 3 rd Audit 08.00 Kresna Duta AgroIndo Estate Environment Aspects : Water management Water courses, water monitoring; Environment waste management, Environmental Impacts;Chemical store, hazards Handling Block B03, B06 Division 5 BNGE RQ HCV Aspects : HGU and Land Status Estates confirmation, Riparian zone, HCV confirmation Legal Aspects : Boundaries Stones with Coordinate data Best Practices : Nursery, Spraying, Harvesting, IPM, Fertilizing System, Topography Block B06, B11, G05 Division 5 BNGE GGU Social Aspects: Meeting Stakeholders TSS OSHASSMK3 : Interview worker for PPE, reproduction protection policy, safety at work issue Worker Welfare: Housing, Clinic, Labour Union, Koperasi, working hour overtime, sexual harassment, pays system Block B06, B08 Division 5 BNGE NS

12.00 Break

13.30 Field visit Mill PT. Kresna Duta Agroindo Langling Jelatang Environment aspects, Best Practices at Mill: SMK3OSHAS Aspects, worker welfare Contractors Suppliers interview, TBS Receiving at Mill, SCC System RQ NS TSS

17.00 End of the day 3

21 Nop’13 Day 4 th 08.00 Reporting Team

12.00 Break

Team 13.30 Closing Meeting 15.30 End of Closing Meeting All 16.00 Departure from Site to Jambi All 20.30 Arrived at Hotel Jambi All 22 Nop’13 Day 5 th 07.00 Departure from Jambi to Jakarta All Number of assessor participating: 4 auditors. Number of days spent for the assessment on site :25 days Total number of person days used for the assessment on site :15 days SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES Sucofindo ICS FRM 3.04 Issue 04 Rev. 6 22of 135

B. 4. Stakeholder Consultation