Assessment agenda partial Certification Audit Audit Team Findings in Correlation to the Rules Partial Certifications

SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES Sucofindo ICS FRM 3.04 Issue 04 Rev. 6 8 of 82

A. 5. 1. Audit Again the Rules for Partial Certification 1. Introduction

The audit team has visited Head office at Way Lunik Lampung to find out the compliance with the rules for partial certification standard in the whole group of Tunas Baru Lampung Group. There are 3 mills and 9 estates within this group. This is the first company in group to be certified by PT Sucofindo, SBU SICS for RSPO certification. The team found that the company conforms with the RSPO requirements for partial certification as stated in the final RSPO certification Systems documents, June 2007, section 4.2.4. Progress and any issue will be verified and reported in subsequent surveillance visits.

2. Assessment agenda partial Certification Audit

3. Audit Team Findings in Correlation to the Rules Partial Certifications

a. The Organization is a member of RSPO PT Tunas Baru Lampung has confirmed membership of the RSPO with no. 1-0024-06- 000-00 b. A Time Bound Plan for achieving certification within relevant entities No Name of Mill Supply Base Company Location Estimate time of Certification 1 PKS I TBL PT. Tunas Baru Lampung Lampung Tengah 2012 2 PKS II BNIL PT. Bangun Nusa Indah Lampung Tulang Bawang 2014 BTLA PT. Bangun Tata Lampung Asri Mesuji BDP-A PT. Budi Dwiyaksa Perkasa Mesuji BDP-B PT. Budi Dwiyaksa Perkasa Mesuji BNCW PT. Budi Nusa Mesuji Date Location Agenda 27 March 2013 Way Lunik Office - Lampung Verifying legal documents, meeting with Human resources department for Labor Union and workers information SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES Sucofindo ICS FRM 3.04 Issue 04 Rev. 6 9 of 82 Cipta Wahana 3 PKS III AKG SUNGSANG PT. Adi Karya Gemilang Way Kanan 2016 AKG BAHUGA PT. Adi Karya Gemilang Way Kanan KAP MIRARANTI H PT. Kencana Acidindo Perkasa Way Kanan a. Significant Conflicts As Audit team visited Bumi Sentosa Abadi estate, the land has been occupied by local community since September 2012. The management has decided that the area will be excluded from the scope of the certification and to be planted with rubber estate upon the completion of the case with government. The company has the status quo with the local community and now they are waiting for the government action for this case. Legally, the company owns the land as they have the HGUownership document for the total 964Ha. b. No replacement of primary forest and or area with HCV’s since November 2005 or year 2007 National Interpretation Documented evidence shows that there is no replacement of primary forest or area containing HCVs since November 2005. c. No labor disputes that are not being resolved through an agreed Both at mill and estate, representative person has been checked to confirm that there are no labor disputes between company and workers. Auditor has interviewed labor union, workers at mill and estate, staff and managers to ensure that any disputes has been resolved through an agreed process. d. No evidence of non-compliance with law in any of the non-certified holdings Land status within the holdings has been verified. There are 2 estates with part of areas have been occupied by local community. First case is : There is area for 987.4 Ha that belongs to company land ownershipHGU in PT. Bangun Tata Lampung Asri and the latest status is on going processnegotiation with local community. Second case is : Conflict area for 987,4 Ha is in land ownership HGU of the company in PT Adi Karya Gemilang AKG. SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES Sucofindo ICS FRM 3.04 Issue 04 Rev. 6 10 of 82 Some area area using by local community as a group of small holders with other company and the rest is occupied and claimed by local community . The negotiation process is on going and the stakeholders has agreed for the company proposal for the compensation, dated 31 May 2012. The company confirmed that the land status which has been occupied belongs to the company. So far, records shown compliance with law in the non-certified holdings. The table below shown the status of the land within the group. SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES Sucofindo ICS FRM 3.04 Issue 04 Rev. 6 11 of 82 A.6. Date Certificate Issued and Scope of Certificate Name of Client PT TUNAS BARU LAMPUNG Client Number RSPO 0001 Certificate Number RSPO 0001 Certification Decision Date 5 April 2013 Issued by PT SUCOFINDO, SBU SICS Address Graha Sucofindo, SBU SICS. Jl Raya Pasar Minggu Kav 34 Jakarta 13640 Telephone Fax Tel.: +62-21-7983666 Fax.: +62-21-7987015 Email tutisucofindo.co.id Website www.sucofindo.co.id Scope : Mill PKS Tunas Baru Lampung Estate Kebun Tunas Baru Lampung Projected mass balance CPO PK CPO : 21,580.71 MT and PK : 5,804 MT Certification Registration Code SICS-0001 Type of Certification Single site Certifier Triyan Aidilfitri Signed SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES Sucofindo ICS FRM 3.04 Issue 04 Rev. 6 12 of 82

B. Assessment Process