Practices maintain soil fertility at, or where possible improve soil fertility to, a level

SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES Sucofindo ICS FRM 14.05 Issue 00 Rev. 1 40of 164

4.2 Practices maintain soil fertility at, or where possible improve soil fertility to, a level

that ensures optimal and sustained yield

4.2.1 There shall be evidence that good agriculture practices, as contained in Standard

Operating Procedures SOPs, are followed to manage soil fertility to a level that ensures optimal and sustained yield, where possible. Minor The company has already had SOP to manage soil fertility in PPGGMOASD45SOP for fertilization procedure manual and mechanical. The procedure has contained list of fertilizer content which has been commonly used along with its nutrient content, volume, and specific gravity. The procedure also contained the dosage of fertilizer in each division and block by using the fertilization recommendation analysis from soil and leaf sampling. The company also uses both inorganic fertilizer and organic fertilizer, and has already implemented Good Agriculture Practices GAP such as planting legume covercrops, placing frond stack on inter- row. Conclusion : Conform 4.2.2 Records of fertiliser inputs shall be maintained. Minor The company has had SOP for manual fertilization number PPGGMOASD45SOP and SOP for mechanic fertilization number PPGGMOASD46SOP to support optimal production or maximize Fresh Fruit Bunch FFB yield by improving nutrient in the soil. The company has maintained the records of fertilizer inputs very well in two type of forms for at least 5 years. The fertilizer inputs are recorded in verification form of fertilization dosage both of manual and mechanic fertilization, while the recommendations of fertilizer are uploaded to OMP8 by ASD Agronomic Service Departement. The company also compared and analyzed between the usage and dosage of fertilizer with FFB yield and it can be confirmed and ensured that the fertilizers are applied according to fertilizer recommendation. There are some of the general fertilizers which has been used in 2017 such as Urea with the dosage of 2 kgpalmyear, Rock Phosphate with the dosage of 2 kgpalmyear, Muriate of PotashKCL with the dosage of 2-3 kgpalmyear, and some area which has Mg deficiency were corrected by Kieserite with the dosage of 1-2 kgpalmyear, NPK with the dosage of 6 kgpalmyear and ZA Ammonum Sulphate with the dosage of 1,5 kgpalmyear. The company already had a realization of fertilization from Januari – Juni 2017 : SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES Sucofindo ICS FRM 14.05 Issue 00 Rev. 1 41of 164 Type of Fertilizer Realization Kg Januari- Juni 2017 Realization T Agustus- Desember 2016 NPK 13-6-27-4 + TE 634,750 - CIRP 152,650 - HGF-B 1,680 - Urea - 2011, 5 RP - 2415 KCL - 1809,8 TSP - 163 Kiesrite - 1479,2 Borate - 51,3 Conclusion : Conform 4.2.3 There shall be evidence of periodic tissue and soil sampling to monitor changes in nutrient status. Minor The company has conducted Soil Sampling Unit SSU for analysing the availability of nutrient in soil. The procedure of Soil Sampling Unit SSU has been stipulated in SOP number PPGGMOASD08SOP. The frequency of conducting Soil Sampling Unit SSU are only once in five years. The company sent soil sampling to be analysed in PT. Central Alami Resources Lestari which located in Pekanbaru. Moreover, the company also has conducted Leaf Sampling Unit LSU as a part that will be used as data for fertilizer recommendation. The Leaf Sampling Unit LSU procedure has using SOP number PPGGMOASD07SOP which has been conducted once in a year. The company also maintained record for leaf and soil analysis which was being kept by ASD Agronomic Service Departement. Conclusion : Conform 4.2.4 A nutrient recycling strategy shall be in place, and may include use of Empty Fruit SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES Sucofindo ICS FRM 14.05 Issue 00 Rev. 1 42of 164 Minor Bunches EFB, Palm Oil Mill Effluent POME, and palm residues after replanting. The company has applied Empty Fruit Bunch EFB as fertilizer and mulching for productivebeneficial plant in order to improve soil fertility. The EFB dosage is 50 tonha or equivalent with 384 kgpalm if the density is for about 163 palmsha. The EFB has been applied by using gil trap application method or manually applied at inter plant at the dosage of 70 pieces EFB. The EFB applications are prioritized for low yielding areas or to an area that is more easily accessible in bad weather conditions. While, fibre, boiler ash, kernell shell are used as renewable fuel. The realization of EFB application for each division as follows : Divisions 2017 Kg I 3047,57 II 5017,23 III 2242,32 IV 3120,38 V 1670,87 TOTAL 15080,37 Conclusion : Conform 4.3 Practices minimize and control erosion and degradation of soils. 4.3.1 Maps of any fragile soils shall be available. Major The company has had soil map which describe about the land condition in all plantation area with the map scale 1:53.875. Based on the soil map, the type of soil mineral and sandy which divided into 3 parts as follows : Lithic Tropopsament =644,53 Ha Typic Dystrudepts = 1908,37 Ha Typic Paleudults = 1241,55 Ha Conclusion : Conform 4.3.2 A management strategy shall be in place for plantings on slopes above a certain limit this needs to be soil and climate specific. Minor SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES Sucofindo ICS FRM 14.05 Issue 00 Rev. 1 43of 164 The company has had SOP for terrrace establishment as a part of management strategy for planting in slopes area. By planting in slope area with certain limit the company can optimize space area and maximize soil potential in a long period in order to prevent erosion. The standard for planting in slope area area as follows : 1. The slope is about 3-8 for hooves or individual terraces 2. The slope is about 8-10 for countour terraces 3. Pilings are applicable to whole cultivable area 4. The distance between palm oil plants in north and south side are 9,21 meter The company has had SOP for road maintenance with document No. PPGGMOASD34SOP. Conclusion : Conform 4.3.3 A road maintenance programme shall be in place. Minor The company already has had a road improvement plan for 2017 and has conducted road maintenance by hardening the road using laterite. Conclusion : Conform 4.3.4 Subsidence of peat soils shall be minimised and monitored. A documented water and ground cover management programme shall be in place. Major Based on the soil type and topography map which was provided by the company, it can be concluded that there is no peat areas in company. The type of soil in the company’s area are mineral. Conclusion : Conform 4.3.5 Drainability assessments shall be required prior to replanting on peat to determine the long-term viability of the necessary drainage for oil palm growing. Minor Based on the soil type and topography map which was provided by the company, it can be concluded that there is no peat areas in company. The type of soil in the company’s area are mineral. Conclusion : Conform 4.3.6 A management strategy shall be in place for other fragile and problem soils e.g. sandy, low organic matter, acid sulphate soils. Minor The company already has had a strategy to coupe with fragile soil such as sandy, low organic matter SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES Sucofindo ICS FRM 14.05 Issue 00 Rev. 1 44of 164 by using empty fruit bunches EFB for fertilizer in order to keep and improve the structure of nutrients in fragile soil. The strategy for improving nutrient was being stipulated in SOP PPGGMOASD66SOP. Conclusion : Conform 4.4 Practices maintain the quality and availability of surface and groundwater. 4.4.1 An implemented water management plan shall be in place. Minor Water Management Plan of estate and mill has included in SOP Water Management Plan No. PASPPGEHS21SOP. Water management is conducted through the protection of riparian areas, regular water quality testing, water treatment in WTP for water demand in mills domestic around the mill. The water resource for operational activities in the Siriham PKS and domestic activities around PKS from Siriham River surface water which is collected in a reservoir. Water from reservoir is processed in Water Treatment Plan and distributed to processes needs and domestic. Tests on water quality WTP for domestic needs is conducted every 6 months with reference to the Permenkes 4161990 to clean water. Identification of other water sources located in the plantation area of PT PSA has conducted through NKTHCV report. There are several rivers around the estates areas such as Garu River, Siriham River, Silat River, and River Kendawangan. The Company did periodical testing every 6 months as one of monitoring form of river water quality. Decree of Regent of Ketapang No. 106 Distamben-D 2016 dated February 11, 2016 concerning Provision of Permit for Surface Water Exploitation and Utilization to PT Poliplant Sejahtera which is valid for 3 three years has been available. Water collection is conducted in Harapan Baru Village, Sengkuang Village, Air Upas Subdistrict, Ketapang District, West Kalimantan Province with coordinates of BT 110 52 10.2 and LS 02 16 40.5 with capacity of 888,000 m 3 year with 3 three points of collection. Decree of Regent of Ketapang No. 105 Distamben-D 2016 dated February 11, 2016 concerning Provision of Permit for Land Acquisition and Utilization of Ground Water to PT Poliplant Sejahtera which is valid for 3 three years has been available. Water collection is conducted in Harapan Baru Village, Sengkuang Village, Air Upas Subdistrict, Ketapang District, West Kalimantan Province with coordinates of BT 110 51 60.0 and LS 02 16 51.1 with a capacity of 2,314 m 3 year with 4 four collection points. SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES Sucofindo ICS FRM 14.05 Issue 00 Rev. 1 45of 164 Water utilization is used as follows: - Siriham Mill and its surroundings; Water sources are derived from surface water reservoir water and used for mill boiler operations, mill process, housekeeping, as well as clean water for office and domestic. - Siriham Estate; Water sources are derived from surface water reservoir water.It used for garden and domestic operations bathing, washing and latrines. In addition, other water sources are derived from ground water drilled well water and used for drinking and clean water for household needs bathing and washing. Surface water and groundwater protection activities have been carried out and are available in the RKL RPL implementation report every semester. Proof of reporting receipt to related institutions for the period of First Semester of 2017 has been available in place. Conclusion: Conform

4.4.2 Protection of water courses and wetlands, including maintaining and

restoring appropriate riparian and other buffer zones refer to national best practice and national guidelines shall be demonstrated. Major There is a HCV Map of PT. PSA made by Daemeter with a scale of 1: 70.000. In the map there is information of springs location with buffer springs 200 meters total 37.68 ha, HCV buffer 4.1 = 780 ha, and HCV buffer 4.2 = 36 ha. Buffer zone is maintained one of them by not giving chemical treatment to buffer zone area. The Company has a Chemical Dust Cleaner SOP No: PPG GMO ASD 36 SOP. In the SOP mentioned that the sprayers must comply with the regulation of the company that is not to do spraying in the area bufferzone. And SOP for Handling of Endangered Species, Limited or Protected Spreads. PAS PPG EHS 45 SOP. The SOP mentioned that small riverside area 50 meters and large river 100 meters on both sides of the river will be maintained SOP has been implemented well. During field visit to Sempadan Sungai Batar in Block G46 Division 4 found the management of river border is in accordance with the SOP that there is a buffer is 50 meters right left river. Trees within 50 meters are marked with red paint as a sign that chemical treatments should not be given and yellow paint as a last sign of chemical treatments. When a visit to G36 springs in Block G36 Division 4 also obtained a similar thing, only a wider buffer distance is SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES Sucofindo ICS FRM 14.05 Issue 00 Rev. 1 46of 164 200 meters circular around the spring. The major finding raise at the time of certification was: Based on the visitation to the Gaharu River in block D43, it has been found that the width of the river border is about 10 m, while based on regulation Keppres 32 years 1990 on Article 16 letter a which stated that the criterion of border for a large river at least 100 m from left and right section and for small river which located outside of settlement at least 50 m from left and right section. While based on PP. 38 of 2011 about river stated that the small river border watershed 500 km 2 is widely 50 m for right and left of the river. Follow-up audit verification: At the time of location visitation, there is a warning board which prohibited spraying or chemical application in radius of 100 m from left and right of river. Based on interviews with sprayers, they have been briefed for not spraying and do manual weeding for 6 palm oil plants in the Gaharu river estimated distance about 50 meters and the restriction was marked with yellow paint on the border plants. Corrective action is sufficient and the major finding can be closed Conclusion : Conform 4.4.3 Appropriate treatment of mill effluent to required levels and regular monitoring of discharge quality, especially Biochemical Oxygen Demand BOD, shall be in compliance with national regulations Criteria 2.1 and 5.6. Minor SOP Effluent Treatment Plant LAB PSA SHMM 06 SOP rev. 0 dated September 1, which has set up the WWTP design parameters, identification of waste disposal sources, waste pool design, waste pool capacity, waste pool function, waste treatment operations, operational procedures, sampling and analysis activities, waste recycle program and reporting methods are available. Siriham Mill waste pool consists of several ponds as follows: - 2 cooling pond - 4373 m 3 and 3548 m 3 - 4 anaerobic ponds - 7200 m 3 , 9030 m 3 , 10320 m 3 and 17400 m 3 - 3 sedimentation pond - 22800 m 3 , 7088 m 3 and 11000 m 3 - 1 emergency pond - 11880 m 3 - 1 CaCo 3 pond - 2340 m 3 SOP Effluent Treatment Plant LAB PSA SHMM 06 SOP which establishes waste analysis procedure once every 1 month with parameters tested ie temperature, pH, BOD5, COD, VFA alkalinity ratio, TSS and oil Grease has been available. Evidence of the test results and monitoring of the quality of the liquid waste has been performed and recorded adequately. SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES Sucofindo ICS FRM 14.05 Issue 00 Rev. 1 47of 164 Wastewater quality in waste pool No. 6 and oil trap have been tested by the Baristand Laboratory and available in the RPL Report for the period of First Semester 2017 and have been reported to the relevant agencies. Test parameters for waste water in pond No. 6 are BOD5, COD, pH, oil and fat, Pb, Cu and Cd also test parameters for oil trap wastewater ie pH, BOD, TSS, oil and fats. The quality standard refers to the Ministerial Decree No. 29 of 2003. Decree No. Ketapang Regent. 660232 KLH-B 2013 dated 24 April 2013 is related to Permit for utilization of waste water on land to PT PSA plantation of 600.21 Ha. It is located in Kecamatan Air Upas and valid for 5 five years. At the time of certification audit, the laboratory used to analyze BOD5 has not been accreditation yet. The company has made corrective action that the Baristand Laboratory for liquid waste analysis has been accredited by KAN. The corrective action is sufficient and the NC can be closed Conclusion: Conform 4.4.4 Mill water use per tonne of Fresh Fruit Bunches FFB see Criterion 5.6 shall be monitored. Minor The monitoring results of monthly water use in the Resource Efficiency Report for the period June 2016 - May 2017 are available with the following usage: Periode Water Process m 3 June 2016 9698 July 2016 4667 August 2016 - September 2016 - October 2016 5527 November 2016 19198 December 2016 24181 January 2017 16639 February 2017 18016 March 2017 21902 April 2017 22510 May 2017 30996 SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES Sucofindo ICS FRM 14.05 Issue 00 Rev. 1 48of 164 Conclusion : Conform 4.5 Pests, diseases, weeds and invasive introduced species are effectively managed using appropriate Integrated Pest Management Techniques

4.5.1 Implementation of Integrated Pest Management IPM plans shall be monitored.

Major The company has had procedure to determine the intensity of pest attacks caterpillar and rat as stipulated in ASDGMO04SOP. Based on the cencus by first division EWS team that has been done on July 2015 for detection of mice. The average intensity of the attacks only about 0,09 which was cetegorized light, so it does not for further action. Conclusion : Conform 4.5.2 Training of those involved in IPM implementation shall be demonstrated. Minor The company has had EWS team which task is for detection and identification pest. Every division has EWS team which was coordinated by foreman. The company has socialized about SOP for Integrated Pest Management on July 7 th 2015. The company also using biologically way for controlling pest such as Turnera Subulata and Antigonon. Conclusion : Conform 4.6 Pesticides are used in a way that do not endanger health or the environment. 4.6.1 Justification of all pesticides used shall be demonstrated. The use of selective products that are specific to the target pest, weed or disease and which have minimal effect on non-target species shall be used where available. Major The company has a policy on safe use of chemicals such as policy non paraquat herbicide use. This policy was assigned by president director on April, 15 2015. The results of the monitoring of pesticide used between January and June 2017 are likely to fluctuate. Mechanism handling of chemicalspesticides have been set in SOP Chemical Hazards Communication no. PASPPGEHS28SOP rev 0. These procedures include procedures for handling chemicals, first aid in case of accidents related to chemicalspesticides, MSDS, labeling packaging chemicalspesticides, training for workers who are dealing with substance chemicalspesticides, as well as, procedures for storage of chemicalspesticides. Conclusion : Conform SUCOFINDO INTERNATIONAL CERTIFICATION SERVICES Sucofindo ICS FRM 14.05 Issue 00 Rev. 1 49of 164

4.6.2 Records of pesticides use including active ingredients used and their LD50, area

treated, amount of active ingredients applied per ha and number of applications shall be provided. Major Mixing of herbicide dose is set on PPG GMO ASD 42 SOP. The company have a pesticide application program. The company has provided a recording of pesticide that was used includes active ingredients contained in it, LD50, the target area of application, as well as the dosage. The active ingredient used in the eradication of plant pests, such as deltamethrin, glyphosate isopropyl amine, and methyl metsilfuron. Conclusion : Conform 4.6.3 Any use of pesticides shall be minimised as part of a plan, and in accordance with Integrated Pest Management IPM plans. There shall be no prophylactic use of pesticides, except in specific situations identified in national Best Practice guidelines. Major The Company has established SOP Integrated Pest Management Guidelines No. PPGGMOASD03SOP. SOP also explain how to use of PPE in the handling of chemicals and adequate working equipment to avoid environmental pollution. The Company has had list of pesticides used. The Company also minimize the use of pesticides for preventing disease on plant except the level of pests and diseases over the threshold that has been set. Since February 2015, The Company was no longer using the pesticide Paraquat dichloride. Types of pesticides which is used today by companies include: a. Agristik b. Garlon c. Lindomin 865 SL d. Roundup

e. Trendy 20 WP Conclusion : Conform