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A.4. Description of Supply Base
A. 4. 1. General description
PT. Kresna Duta Agroindo operates 2 palm oil mills under PT. Kresna Duta Agroindo, named PT. Kresna Duta Agroindo - Jelatang Mill JLTM and PT. Kresna Duta Agroindo
– Langling Mill LNGM.
This report scope is only for PT Kresna Duta Agroindo - Langling Mill and its supply bases. The raw material FFB for PT. Kresna Duta Agroindo - Langling Mill is supplied from the 1. Bangko
Estate Division 5, and 2. Batang Gading estate. Totally supplied FFB from these two 2 estates are 23,100.79 MT.
All estates are operated under one management of PT. Kresna Duta Agroindo. All estates located in Jambi, Indonesia. PT. Kresna Duta Agroindo is a member of RSPO and they are
implementing a program to achieve RSPO Certified Palm Oil for all its production. There is no plan to expand the land holding and therefore Principles 7 is not applicable to this
assessment.
A. 4. 2. Location of the supply base No.
Estate Name Location
GPS Latitude
Longitude
1
Bangko Estate Desa Langling, Kecamatan
Bangko, Kabupaten
Merangin, Provinsi Jambi, Indonesia
02
o
05‟ 50” 102
o
21‟ 58”
A. 4. 3. Statistic of supply base No.
Estate Name
Planting Year
AreaPlanting Year
AgePlanting Year
Estimated FFBYear
Estimated CPOYear
1 Bangko
Estate Divisi 5
1994 514,46
19 14,506.84
3,062.31 1995
123,65 18
2,940.54 620.73
1997 223,75
16 5,653.41
1,193.40 TOTAL
23,100.79 4,876.44
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A. 5. Organizational Information and Contact Person
1 Company Name
PT. KRESNA DUTA AGROINDO 2
Personal Contact Ismu Zulfikar
3 Vice Management
Eldimart 4
Company Address Sinarmas Land Menara 2 Lantai 30, Jalan M. H.
Thamrin No. 51, Jakarta, Indonesia 5
Company Status PMDN
7 Phone Fax
021 50338899 8
E-mail ismu.zulfikarsinarmas-agri.com
9 Website
www.smart-tbk.com 10
RSPO membership number 1-0019-05-000-00
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A. 5. 1. Audit Again the Rules for Partial Certification 1. Introduction
The audit team has visited Head office at Sinarmas Land Plaza, Tower 2, 30
th
Floor, Jalan M. H. Thamrin No. 51, Jakarta, Indonesia to find out the compliance with the rules for partial
certification standard in the whole group of PT Sinar Mas Agro Resources and Technology, Tbk SMART. There are 14 mills, 40 own estates and14plasma associated smallholders
within this group. The team found a major and a minor non conformity refer to the RSPO requirements for partial certification as stated in the final RSPO certification Systems
documents, June 2007, section 4.2.4 as describe below :
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 Kresna Duta Agroindo has confirmed membership of the RSPO under PT
SMART Tbk with no. 1-0019-05-000-00 b. A Time Bound Plan for achieving certification within relevant entities
No Name of Mill Supply Base
Company Location
Estimate time of
Certifica tion
1 Padang
Halaban Mill Padang Halaban Estate
Pernantian Estate Adipati Estate
Kanopan Ulu Estate PT. SMART TBK
North Sumatera
2011
2 Batu Ampar
Mill Batu Ampar Estate
Batu Mulia Estate Sungai Panci Estate
PT. SMART TBK South
Kalimantan 2012
Date Location
Agenda
19 November 2013
BangkoEstate Verifying legal documents, meeting with
Human resources department for Labor Union and workers information
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Sungai Panci KKPA 3
Tanah Laut Mill
Tanah Laut Estate Kintapura Estate
PT. SMART TBK South
Kalimantan 2012
4 Langga
Payung Mill Langga Payung Estate
Paya Baung Estate Normak Estate
PT. Tapian Nadenggan
North Sumatera
2012
5 Hanau Mill
Hanau Estate Tasik Mas Estate
Tanjung Paring Estate Langadang Estate
Medang Sari Estate PT. Tapian
Nadenggan
PT. Satya Kisma Usaha
Central Kalimantan
2012
2015 6
Leidong West Mill
Leidong West
Utara Estate
Leidong West Selatan Estate
Bukit Intan Estate Bukit Mas Estate
PT. Leidong West Indonesia
Bangka 2013
7 Semilar Mill
Semilar Estate Sei Rindu Estate
Mandang Estate Puri Estate
PT. Tapian Nadenggan
Central Kalimantan
2013
8 Jak Luay Mill
Pantun Mas Estate Pantun Mas KKPA
Jak Luay Estate Jak Luay KKP
Long Buluh Estate Bukit Subur Estate
Bukit Subur KKPA PT. Tapian
Nadenggan East
Kalimantan 2014
9 Gunung
Kombeng MillMuara
Wahau Mill Gunung Kombeng Estate
Gunung Kombeng KKPA Muara Wahau Estate
Rantau Panjang Estate Rantau Panjang KKPA
PT. Kresna Duta Agroindo
East Kalimantan
2014
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10 Jelatang Mill
Bangko Inti Estate Tiga Serumpun KKPA
Pamenang Plasma Bukit Bungkul KKPA
PT. Kresna Duta Agroindo
Jambi 2014
2014 2015
2015 11
Pelakar Mill Pelakar Estate
Tiga Serumpun KKPA Batang Merangin Estate
Batang Tembesi Estate Kubang Ujo Plasma
PT. Kresna Duta Agroindo
Jambi 2014
2014 2014
2014 2015
12 Langling Mill
Bangko Inti Estate Bangko Plasma
Bukit Bungkul KKPA Pamenang Plasma
Batang Gading Estate Batang Gading KKPA
PT. Kresna Duta Agroindo
PT. Satya Kisma Usaha
Jambi 2014
2015 2015
2015 2015
2015 13
Sungai Bengkal Mill
Sungai Bengkal Estate Sungai Bengkal KKPA
Kilis Estate Kilis KKPA
PT. Satya Kisma Usaha
Jambi 2014
14 Bukit Kapur
Mill Sungai Cantung Estate
Bukit Kapur Estae PT. SMART TBK
South Kalimantan
2015 The raw material for POM PT. Kresna Duta Agroindo KDA
– Langling Mill is supplied from the FFB which are 1. Bangko Inti Estate; 2. Bangko Plasma; 3. Bukit Bungkul KKPA; 4. Pamenang
Plasma; 5. Batang Gading Estate PT. Satya Kisma Usaha; 6. Batang Gading KKPA PT. Satya Kisma Usaha and 2 two from associated smallholders.
The application of Certification audit was Langling Mill and Bangko Estate Division 5 as a supply base.
During the preliminary audit, it was informed that the supply base from main estate is only Bangko estate. At the time of certification audit, it was found that Langling estate also receives
continually from other own estate named Batang Gading estate. The Batang gading estate supplies about 84,48 meanwhile Bangko estate supplies for 15,52. The Batang gading
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estate belongs to PT SKU time bound plan which will be certified by other certification body. Refers to the RSPO SCC system and RSPO Certification system, the Batang gading estate
should be within the scope of KDA-Langling mill certification. Team audit decide to issue the Major non-conformace considering to requirements as belows :
1. RSPO Certification System clause 4.2.3 that the unit of certification shall be the mill and its supply base ,
2. RSPO Certification System clause 4.2.4 the management has set up the time-bound plan of Batang Gading Estate as the Supply Base of PT SKU Mill which will be certified by other
Certification Body. This is not accepted the appropriateness of the time bound plan at the moment.
3. RSPO SCC Standard module E – CPO Mills: Mass Balance, clause E.3.3: a The Facility
shall record and balance all receipts of RSPO certified FFB and deliveries of RSP certified CPO, PKO and palm kernel meal on a three-monthly basis. In identification and traceability
procedure SOPLNGMSIK, Mass Balance included in the calculation of monthly, quarterly and yearly. At the time of the audit, the company doesnt have quarterly report to the
recording and balance of certified FFB and CPO. This is issued as non-conformity major. 4. RSPO Supply Chain Certification System clause and 5.3.16 that all non-conformances
observed during an audit shall be classified as „major‟ since all requirements for Supply Chain Certification have to be met before granting certification.
Please see the Appendix 1: RSPO Supply Chain Checklist – Mass Balance Module and
Attachment1: Non-Conformity Observation Report.
Conclusion : Major Non Conformities
Team has been verified documents during partial certification audit. The companyhas conducted Gap analysis to the whole group compare to P C RSPO requirement. The Gap Analysis
conducted by other Certification Body. Randomly, the team checked the content of reports to ensure the fulfillment of partial certification. From the sampling report, the team found that not all
report has the conclusion for the fulfillment regards to partial certification requirement. The company has made the self declaration for partial certification rule and signed by
management. The self declaration stated as belows a-d : a. Significant Conflicts
The company has the SOP for Conlict Land Resolution refers to RSPO criteria 6.4, 7.5
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and 7.6. All the conflicts so far has been resolved with mutual agreement. GAR also registerd as member of RSPO Dispute Settlement Facility Advisory Group as a
representative of grower. Supporting document is DSF RSPO member as a grower dated 22 April 2013.
b. No replacement of primary forest and or area with HCV’s since November 2005 or year
2007 National Interpretation
PT SMART Tbk has conducted Historical HCV Assesment HHA in collaboration with Faculty of Forestry, Institut Pertanian Bogor IPB April 2011. Historical HCV Assesment
HHA Report has been submitted to RSPO on May 2011. As a follow up from the Historical HCV Assesment HHA Report, GAR has been proposed HCV Remediation
Plan to RSPO. Revisions of HCV Remediation Plan are on going process discussion with RSPO Biosdiversity and HCV Working Group BHCV WG. Supporting documents is
Historical HCV Assesment HHA report. c.
No labor disputes that are not being resolved through an agreed The company has the SOP and menchanism to resolve dispute with union labour with
mutually agreement. The last data shows that there was a labor dispute in Jambi in 2012. The dispute has been resolved by related parties and has been final through Jambi
Industrial Relation Court. There is the Decision of the Supreme Court of the Republic of Indonesia No. 1007 KPdt.Sus2010 related to the case of the industrial relation dispute.
d. No evidence of non-compliance with law in any of the non-certified holdings
There are no land dispute or court cases. The last case was in 2012 relating to the PT SMART Tbk land located in North Sumatera. The people occupied land under the
company‟s HGU and the case was won by the company.
A.6. Date Certificate Issued and Scope of Certificate
Name of Client PT KRESNA DUTA AGROINDO
Client Number RSPO 00007
Certificate Number RSPO 00007
Certification Decision Date Issued by
PT SUCOFINDO, SBU SICS Address
GrahaSucofindo, SBU SICS. Jl Raya Pasar Minggu
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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 Langling Mill
Estate Bangko Estate
Projected mass balance CPO PK CPO : 60,014.366 MT and PK : 14,931.666 MT
Certification Registration Code SICS-00003
Type of Certification Single site
Certifier TriyanAidilfitri
Signed
B. Assessment Process
B. 1. Certification Body
SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES SUCOFINDO ICS, which was formed in 1994, is one of the strategic business unit that provides certification services for
leading companies.SucofindoCertification by International Certification Services is recognized nationally and international.Quality Management System Certification by SUCOFINDO ICS has
obtained accreditation from National Accreditation Committee KAN-Indonesia. Lead Auditors and Auditors of SUCOFINDO ICS are trained professionals in the field of
international standards, auditing and management systems and are registered in the IRCA International Register of Certified Auditors and IEMA Institute of Environmental Management
Assessment, UK. SUCOFINDO ICS certification process is supported by experts at PT. SUCOFINDO who understand the industry sectors and services in Indonesia.
SUCOFINDO ICS Operational is supported by a network of branch and representative offices of PT. SUCOFINDO spread in 45 cities across Indonesia.
The services provided by International Certification Services Sucofindo are:
Quality Management System Certification
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Issue 04 Rev. 6 14of 135
Environmental Management System
ISO 22000 :2005
OHSAS 18000 Certification
Hazard Analytical Critical and Control Point HACCP Certification
Good Manufacturing Practice GMP Audit
Product Certification
Sustainable Forest Management Certification
Products Organic Food Certification
RSPO certification
ISPO Certification
Certification of Integrated Management System Certification SMT
Training
B. 2. Qualifications of the Assessment Team