Public Summary of SIP SBYM

RSPO

Assessment Report

PUBLIC SUMMARY

PT. Sumber Indah Perkasa – Sungai Buaya Mill ,

Lampung, Indonesia

This public summary has been prepared in accordance with RSPO requirements and the information included is the result of a full RSPO assessment of the Mills and supply base as included in the scope of the certificate.

Prepared by: Tuti Suryani Sirait (Lead Assessor) Certification decision made by:Triyan Aidilfitri

PT. SUCOFINDO (Sucofindo International Certification Services – SICS) Graha Sucofindo B1 Floor,

Jl. Raya Pasar Minggu Kav. 34, Jakarta 12780 Indonesia Contact Person : Tuti Suryani Sirait

Phone : (62-21) 7983666: Fax : (62-21) 7987015 Email : tuti@sucofindo.co.id

List of Contents

Page

A Scope of the Certification Assessment...4

A.1. National Interpretation Used ...4

A.2. Assessment Type (Estate and Mill) ...4

A.3. Location Map ...4

A.3.1. Location Address of the Mill and Approximate Tonnages Certified (CPO and PK5 )...5

A.4. Description of Supply Base ...5

A.4.1. General Description ...5

A.4.2. Location of Supply Base ...6

A.4.3. Statistic of Supply Base ...6

A.5. Organizational Information and Contact Person...7

A.5.1 Audit against the Rules for Partial Certification ...8

A.6. Date Certificate Issued and Scope of Certificate ...12

B. Assessment Process ...13

B.1. Certification Body...13

B.2. Qualifications of the Assessment Team ...13

B.2.1. Qualifications of the Lead Assessor and Assessment Team ...13

B.3. Assessment Methodology ...14

B.3.1. General Overview ...14

B.4. Stakeholder Consultation ...18

B.4.1. Summary of How Stakeholder Consultation was Organized ...18

B.5. Date of Next Surveillance Visit ...21

C. Assessment Findings...22

C.1. Lead Assessor’s Summary and Recommendation for Certification ...22

D. Certified Organization’s Acknowledgement of Internal Responsibility...53

D.1. Formal Sign-Off the Assessment Findings ...53

D.2. Statement by the Certifier Body on Behalf of PT. Sucofindo SBU-SICS...54

List of Abbreviation ...55

Attachment 1 - Map ...57

Attachment 2 - NCR ...67

A.Scope of the Certification Assessment

A. 1. National Interpretation Used

The management of the Palm Oil Mill(s) and associated suppliers of Fresh Fruit Bunches (FFB) were assessed for compliance against the International RSPO criteria as interpreted and endorsed for Indonesia, RSPO Certification Systems and RSPO Suply Chain Certification Systems.

A. 2. Assessment Type (Estate and Mill)

Certification Unit : PT. Sumber Indah Perkasa – Sungai Buaya Mill located at Mesuji Timur, Mesuji Regency – Lampung, INDONESIA

A.3.

Location map

Please see Appendix 1 : the details of estate maps of

1. Overlay Map of Sungai Buaya Estate (SBYE), Gedung Aji Lama (GALA) Estate and Mesuji (MSJA) Estate, 2.Map of Rivers, 3.HCV , 4.Topography, 5. Planting Year

A. 3. 1. Location address of the mill and approximate tonnages certified (CPO and PK) No Name of Mill Location Address GPS Reference

Annual Output (mt)

CPO PK

1. Sungai Buaya Mill PT. Sumber Indah Perkasa

Desa Talang Batu, Kecamatan Mesuji Timur, Kabupaten Mesuji – Lampung

Latitude:

4o07’ 43.00” LS Longitude:

105o26’ 19.82” BT

66.926,18 16.420,64

Note : This data (Annual output) exclude from non-certified suppliers)

A.4.

Description of Supply Base

A. 4. 1. General description

PT. Sumber Indah Perkasa operates 2 palm oil mills under PT Sumber Indah Perkasa, named PT Sumber Indah Perkasa - Sungai Buaya Mill (SBYM) and PT Sumber Indah Perkasa – Sungai Merah mill (SMRM).

Sungai Buaya Estate (SBYE)own estate, 2. KKPA Gedung Aji Lama (GALA) Estate -smallholder and 3. KKPA Mesuji (MSJA) Estate - -smallholder. Totally supplied FFB from these three (3) estates are 300,561,69 MT.

All estates are operated under one management of PT. Sumber Indah Perkasa. All estates located in Lampung, INDONESIA. PT. Sumber Indah Perkasa 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 Sungai Buaya Estate

(SBYE)

Desa Talang Batu, Kecamatan Mesuji Timur, Kabupaten Mesuji – Lampung

4o09’ 44.86” 105o26’ 09.23”

2 KKPA Gedung Aji Lama (GALA) Estate– Plasma

Desa Paduan Rajawali, Kecamatan Meraksa Aji, Kabupaten Tulang Bawang – Lampung

4o17’ 23.84” 105o25’ 54.68”

3 KKPA Mesuji (MSJA) Estate– Plasma

Desa Brabasan,

Kecamatan Tanjung Raya, Kabupaten Mesuji – Lampung

3o58’ 40.74” 105o20’ 50.75”

A. 4. 3. Statistic of supply base No. Estate Name Planting Year Area/Planting Year Age/Planting Year Estimated FFB/Year Estimated CPO/Year 1 Sungai Buaya Estate (SBYE)

1991 513,14 22 11.625,545 2.565,87

1992 2.720,94 21 67.169,083 14.824,88

1993 1.118,24 20 22.702,698 5.010,71

1994 402,54 19 7.448,399 1.643,94

2000 30,66 13 705,555 155,72

2 KKPA

Gedung Aji Lama (GALA)

1995 250,00 18 6.930,170 1.510,23

1996 2.833,00 17 78.414,670 17.088,21

Estate

-Plasma 1998 606,00 15 15.561,800 3.391,25

3 KKPA

Mesuji (MSJA) Estate -Plasma

1995 149,75 18 3.337,980 736,90

1996 2.631,25 17 62.722,060 13.846,72

1997 1.891,88 16 47.275,360 10.436,66

1998 533,00 15 12.488,510 2.757,00

A. 5. Organizational Information and Contact Person

1 Company Name PT. SUMBER INDAH PERKASA – Sungai Buaya Mill (SBYM)

2 Personal Contact Ismu Zulfikar

3 Vice Management Humala Sinaga

4 Company Address Sinarmas Land Plaza 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-zulfikar@smart-tbk.com

9 Website www.smart-tbk.com

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, 30thFloor, Jalan M. H. Thamrin No. 51, Jakarta, Indonesia dated 13 September 2013, to find out the compliance with the rules for partial certification standard in the whole group of Golden Agri Resources, Ltd. (GAR Group). There are 17 mills and 61 estates (including plasma) 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 Sumber Indah Perkasa has confirmed membership of the RSPO with no. 1-0096-11-000-00

b. A Time Bound Plan for achieving certification within relevant entities

No Name of

Mill Supply Base Company Location

Estimate time of Certification 1 Sungai

Buaya Mill

Sungai Buaya Estate

PT. Sumber Indah Perkasa

Lampung 2013

Gedung Aji Lama KKPA

Mesuji KKPA 2 Sungai

Merah Mill

Sungai Merah Estate

PT. Sumber Indah Perkasa

Lampung 2013

Gedung Aji Baru KKPA

Gedung Aji Lama KKPA

3 Pangkalan Panji Mill

Sawit Mas Estate PT. Sawit Mas

Sejahtera South

Sumatra

2014

Date Location Agenda

13 September 2013

Head Office - Jakarta Meeting with sustainable team to verify legal documents, HCV, Labor Union and land conflict within the GAR group

4 Bumi Sawit Mill

Bumi Sawit Estate PT. Bumi Sawit

Permai South

Sumatra

2014

5 Muara

Kandis Mill

Muara Kandis PT. Djuanda

Sawit Lestari South Sumatra 2014 Muara Tawas Pandawa KKPA Pandawa Plasma 6 Sungai Rungau Mill Sungai Rungau Estate PT. Sumber

Indah Perkasa Central Kalimantan 2013 Sungai Seruyan Estate Terawan Estate Tangar Estate Bukit Tiga Estate 7 Bukit Perk

Mill

Bukit Perak PT. Bumi Permai

Lestari Bangka Belitung 2014 Bukit Permata 8 Tanjung Kembiri Mill Tanjung Kembiri Estate PT. Foresta

Lestari Dwikarya Bangka Belitung 2013 Tanjung Rusa 9 Sungai Kupang Mill Sungai Kupang Estate PT. Sinar Kencana Inti Perkasa South Kalimantan 2015 Sungai Kupang

10 Kasuari Mill Cendrawasih PT. Sinar Kencana Inti Perkasa Papua 2014 Nuri Estate Rajawali Estate Mambruk Estate 11 Senakin Mill

Senakin Estate PT. Purimas

Sasmita South

Kalimantan

2014 12 Pekawai

Mill

Kayung Estate PT. Agrolestari

Mandiri West Kalimantan 2014 Pekawai Estate Sungai Kelik Nanga Tayap

Kayung Kemitraan 13 Kenanga

Mill

Kencana Estate PT. Kencana

Graha Permai West Kalimantan

2014 Cendana Estate

Kenanga Estate Cempaka Estate Kencana

Kenanga 14 Tanggar

Mill

Manuhing Estate PT. Tapian

Nadenggan Central Kalimantan

2015 Kajuji Estate

Sulin Estate Nahiyang Estate Katayang Estate Sungai Nusa Sako Estate Sungai Ayawan Estate

15 Perdana Mill

Perdana Estate PT. Binasawit

Abadi Pratama Central Kalimantan

2015 Lenggana Estate

Semandau Estate Muara Dua Estate

16 Kuayan Mill Mentaya Estate PT. Agrokarya

Prima Lestari Central Kalimantan

2015 Kuayan Estate

Bukit Santuhai Estate

Tajur Beras Seranau Estate Sapiri Estate

17 Belian Mill Gaharu Estate PT. Paramitra

Internusa West

Kalimantan

2015 Muara Tawang

Estate Pratama Belian Estate

Tengkawang Kapuas Hulu

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 BSI 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 Conflict Land Resolution refers to RSPO criteria 6.4, 7.5 and 7.6. All the conflicts so far has been resolved with mutual agreement. GAR also registered 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 been appointed to manage all companies under GAR Group. PT SMART Tbk has conducted Historical HCV Assessment (HHA) in collaboration with Faculty of Forestry, Institut Pertanian Bogor (IPB) April 2011. Historical HCV Assessment (HHA) Report has been submitted to RSPO on May 2011. As a follow up from the Historical HCV Assessment (HHA) Report, GAR has been proposed HCV Remediation Plan to RSPO. Revision of HCV Remediation Plan is on going process/ discussion with RSPO Biodiversity and HCV Working Group (BHCV WG). Supporting documents is Historical HCV Assessment (HHA) report.

c. No labor disputes that are not being resolved through an agreed

The company has the SOP and mechanism to resolve dispute with union labor with mutually agreement. The latest resolution dispute document handled as evidence is dispute between workers (Hanadi) with PT. Foresta Lestari Dwikarya for terminated employment. The worker has been assumed to be resigned as he has absent for 8 (eight) days in a month. The supporting document is available such as chronology of resolution Industrial Relation between worker and PT. Foresta Lestari Dwikarya, copy of legal verdict caseIndustrial Relations No. 08/G/2012/PHI. PN PKP from court of Industrial Relations at Court of District Pangkalpinang. Collective agreement PT. FLD with Mr. Hanadi No. 07/EM-pb/IV/2013 completed with the sign of each party.

d. No evidence of non-compliance with law in any of the non-certified holdings

The company has comply with the applicable law and regulation refers to RSPO criteria 2.1.which stated no evidence of non-compliance with the applicable regulation. Supporting documents are copies of SK AMDAL, SK HGU, IUP, IMB.

A.6.

Date Certificate Issued and Scope of Certificate

Name of Client PT SUMBER INDAH PERKASA – Sungai Buaya

Mill

Client Number RSPO 00003

Certificate Number RSPO 00003

Certification Decision Date

Issued by PT SUCOFINDO, SBU SICS

Address GrahaSucofindo, SBU SICS. Jl Raya

PasarMingguKav 34 Jakarta 13640

Telephone /Fax Tel.: +62-21-7983666 / Fax.: +62-21-7987015

Email tuti@sucofindo.co.id

Website www.sucofindo.co.id

Scope :

Mill PT. Sumber Indah Perkasa - Sungai Buaya Mill

(SBYM)

Estate 1. Sungai Buaya Estate (SBYE)

2. Mesuji Estate (MSJA)

3. Gedung Aji Lama Estate (GALA)

Projected mass balance CPO & PK CPO : 66.926,18 MT and PK : 16.420,64 MT Certification Registration Code SICS-00003

Type of Certification Single site

Certifier Triyan Aidilfitri

B. Assessment Process

B. 1.

Certification Body

SUCOFINDO SUCOFINDO ICS 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

 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

B. 2. 1. Qualifications of the Lead Assessor and Assessment Team Tuti Suryani Sirait (Lead Auditor) :

Graduated from Institute Agriculture in Bogor (IPB), 1991

She has more than 10 years audit experiences in auditing HACCP, GMP, ISO 9001:2008, ISO 22000:2005, ISPO and RSPO.

She has successfully completion training RSPO by Komisi RSPO, Jakarta, SCC Standard Training by David Ogg & Partner – Jakarta, ISPO Lead Auditor Training by Komisi ISPO, Jakarta, Lead Auditor Training of ISO 9000/19011 organized by SICS – Sucofindo, ISO 22000 : 2005 FSMS Auditor / Lead Auditor by Moody International, Singapore; Lead Assessor for Food Safety Management System (HACCP&GMP) by QAS Sydney, Australia and Social Lead Auditor Training (SA 8000) from Social International Audit (SIA), Turkey.

She is actively participated in RSPO meeting to discuss RSPO P & C and also as a trainer in ISPO Lead auditor training.

WarsidSumarlin (Auditor)

He graduated from Institute Agriculture of Bogor (IPB) majoring Economic and Social.

He has more than 5 years audit experiences in OSHAS and SMK3. He has successfully completion from Lead auditor for SMK3, Lead Auditor for OHSAS and Lead Auditor for ISO 9001. He has successfully completion training RSPO by Komisi RSPO, Jakarta, ISPO Lead Auditor Training by Komisi ISPO, Jakarta.

Rizky Qomaruzaman (Auditor)

Lead Auditor SMK3 since year 1997 till now. Lead Auditor OHSAS 18001 since year 2000. Auditor ISO 14001 since 2002. Premises visited: many various industries, petrochemical, oil & gas, EPC, general contractor, Palm Oil Plantation and Mill, chemical, pulp & paper, coal mining, cement industries, and so on.

Attended Green Company Training year 2008, He has successfully completion from ISPO lead auditor course year 2013, attended RSPO lead auditor Course at KL year 2013, attended environmental seminar (Environmental Audit) from Environmental Ministry Republic Of Indonesia year 2013.

Yusuf Mu’arif (Auditor)

He has graduated from Bogor Agriculture University (IPB Bogor) since March 1988.

He has more than 10 years audit experiences in auditing (internal and external audit) of Australian Quarantine Scheme and Ministry of Agriculture of RI, ISPO, OHSAS and SMK3. He has successfully completion training of ISPO Lead Auditor Training by Komisi ISPO, Internal Auditor SMK3 from Ministry of Manpower and Transmigration RI that held by SICS – Sucofindo. Kind of audit scope such as various industries, petrochemical, general contractor, plantation of palm oil, chemical, electrical generator project, telecommunication etc.

Ganjar Gumelar (Auditor):

He graduated from University ofGadjahMada (UGM), Forestry Faculty, majoring in Forest Management, Yogyakarta.

He has completed the training such as Indonesian Sustainable Palm Oil (ISPO) auditor training, Komisi ISPO – Ministry of Agriculture & Komisi Akreditasi Nasional (KAN), Bogor (West Java) & Pangkalan Bun (Kalimantan), Indonesia, 2013 ;ISO 9001 : 2000 Quality Management Systems (QMS) Auditor/Lead Auditor Training Course (IRCA),PT. SUCOFINDO (Persero), Jakarta, Indonesia, 2013 ; Awareness Hazard Analysis Critical Control Point (HACCP), PT. SUCOFINDO (Persero), Jakarta, Indonesia, 2013 ; Life Cycle AssessmentWorkshop Oil Palm Plantation and Oil Palm Milling, Life Cycle Sustainability Assessment Lab &State Minister for The Environment, Jakarta, Indonesia, 2013 ; Assessor Training High Conservation Value Forest – 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 carryingout 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. Partial certification audit conducted in September to check compliance with Final RSPO Certification System for partial certification.

The opening and closing meeting was conducted at the office Tulang Bawang - Lampung and then continue in Mill’s and estate’s offices. Stakeholders meeting was conducted twice, firstly

was held during Preliminary Audit and secondly Certification Audit. At the opening meeting, the team audit confirm to conduct the audit at : Regional Office at Tulang Bawang - Lampung, include

• Documentation review for transparencies

• CSR plan and policy

• Internal Audit program & Management Review Meeting

• Land ownership and compensation mechanism 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: Fertilizing operations. SOP’s., Herbicide application program. Harvesting sites and efficiency. Soil maps. Land preparation. Ground cover. IPM. First aiders and 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 P&C’s applicable.

• Worker interviews. OSH. Sexual, religious, racial harassment. Payment scheme, contracts, union labor

• Supply Chain Certification System from receiving until finish products (CPO and PK). Actual Audit Programme

Phase I : Preliminary Audit

Date/Time Functions / areas / Department / activities to be audited (include related requirements)

10 June 2013 Day 1stAudit

13.00 Departure to Regional Office Sungai Buaya Estate

13.00 Break

15.00 Opening Meeting at Regional Office (All Team) 17.00 End of the day 1

11 June 2013 Day 2ndAudit

08.00 Location: Sungai Buaya Estate (Division II blok 14-15)

Environment Aspects :Water Management (water courses, water monitoring); Environment waste management, Environmental Impacts, Chemical store (RQ)

HCV Aspect:HGU and Land Status Estates confirmation, Riparian Zone , HCV Confirmation (RQ)

Plantation Aspects :Herbicide Application Programme, Integrated Pest management ); Harvesting Site, Fertilizing Operations, Land Preparation and Assessment (WS)

12.00 Break

Sungai Buaya Mill & Sungai Merah Mill (All Team )

14.00 Document Review of Environmental, HCV, Social and Best Practices Aspects

17.00 End of the day 2 12 June 2013 Day 3rd Audit

08.00 Sungai Buaya Mill & Sungai Merah Mill (All Team) Environment Aspect, Biodiversity, & HCV (RQ)

OSHAS/SMK3, Worker Welfare, Training, & Best Practices (WS) Social, Legality, Management & SCC System (TSS)

17.00 End of the day 3 13 June 2013 Day 4th

Gedung Aji Baru Estate (blok B 13)

08.00 Document Review of Environmental, HCV, Social and Best Practices Aspects (TSS, WS, RQ)

12.00 Break

14.00 Environment Aspects :Water Management (water courses, water monitoring); Environment waste management, Environmental Impacts, Chemical store (RQ)

HCV Aspect:HGU and Land Status Estates confirmation, Riparian Zone , HCV Confirmation (RQ)

Plantation Aspects :Herbicide Application Programme, Integrated Pest management ); Harvesting Site, Fertilizing Operations, Land Preparation and Assessment (WS)

17.00 End of the day 4 14 June 2013 Day 5th Audit

08.00 Reporting

12.00 Break

15.00 Closing Meeting

19.00 Departure from Lampung to Jakarta Scope : 2 mills and 5 estates

Number of assessor participating: 3 auditors

Number of days spent for the assessment on site : 15 days

Phase II : Certification Audit

Date/Time Functions / areas / Department / activities to be audited (include related requirements)

15 Jul’13 1st Day

12.35 Departure from Jakarta – Lampung

13.00 Departure to Regional Office Sungai Buaya Estate 13.00 Break

14.30 Opening Meeting

Arrangements Schedule Auditor vs auditees

Arrangements location (estate and stakeholders) to be visited 16.30 End of audit day 1

16 Jul’13 2ndDay

07.30 Location : Office

Documents Audit : Review previous findings (All Team) 12.00 Break

14.00 Location : Sungai Buaya Mill (SBYM) Best Practices & Environment Aspect (RQ)

Worker Welfare, Training, Management (WS & TTS) OSHAS/SMK3 (YM)

Social & Legality (TSS & GGU) 16.30 End of audit

17 Jul’13 3 rd Day

09.00 Location : Mesuji KKPA (MSJA)

Environment Aspects:Water management (Water courses, water monitoring); Environment waste management, Environmental Impacts; Chemicals store. (RQ)

HCV Aspect: HGUand Land Status Estates confirmation, Riparian Zone, HCV Confirmation. (GGU & YM)

Plantation Aspects: Herbicide Application Programme, Integrated Pest management); Harvesting Site, Fertilizing Operations, Land Preparation and Assessment. (GGU & YM)

Social Aspects: Meeting Stakeholders, Kepala Desa and Confirmation of Local Contribution /CSR. (TSS)

Worker Welfare:Housing, Clinic, Labor Union, Koperasi, Worker welfare. (WS) Location : Gedung Aji Lama KKPA (GALA)

Social Aspects : Meeting Stakeholders, Kepala Desa and Confirmation of Local Contribution /CSR. (TSS)

16.30 End of audit 18 Jul’13 4th Day

07.30 Location : Sungai Merah Estate (SMRE)

Environment Aspects:Water management (Water courses, water monitoring); Environment waste management, Environmental Impacts; Chemicals store.

(RQ)

HCV Aspect: HGUand Land Status Estates confirmation, Riparian Zone, HCV Confirmation. (GGU)

Plantation Aspects: Herbicide Application Programme, Integrated Pest management); Harvesting Site, Fertilizing Operations, Land Preparation and Assessment. (YM)

Social Aspects: Meeting Stakeholders, Kepala Desa and Confirmation of Local Contribution /CSR. (TSS)

Worker Welfare:Housing, Clinic, Labor Union, Worker Welfare. (WS) 12.00 Break

14.00 Location : Sungai Merah Mill (SMRM)

Best Practices & Environment Aspect. (RQ, YM & GGU) Worker Welfare, Training, Management (WS)

OSHAS/SMK3 (WS & YM)

Social Legality, & SCC System (TSS) 16.30 End of audit

19 Jul’13 5th Day

07.30 Reporting (All Team) 12.00 Break

14.00 Closing Meeting (All Team) 17.00 Back to Lampung

22.00 Arrive at Lampung 20 Jul’13 6th Day

06.50 Back to Jakarta

Scope : 2 mills and 5 estates

Number of assessor participating: 5 auditors + 1 Witness Ministry of Agriculture, totally 6 person Number of days spent for the assessment on site:30 days

Total number of person days used for the assessment on site : 25 days

B. 4. Stakeholder Consultation

B. 4. 1. Summary of How Stakeholder Consultation was Organized Stakeholders Consultation and Company Responses

Issue Company Responses Assessor Findings

Sungai Buaya Mill (SBYM) FFB Contractor : Mr. Dalmadi The employee of contractor has been paid as per government standard for minimum salary per province.

The contract agreement has contained the requirement for

Company has the SOP, stated contractor should obey for safety standard and relevant government regulation.

safety.

The payment methods has been agreed by each party

The contractor has been trained for safety matter

Sungai Buaya Estate (SBYE) Head of Sub-district Meraksa Aji (Bpk Sukerdi)

There is complains from growers that company charge for

production, transport and

methods was not clearly defined

The head of Sub-district Meraksa Aji is new in his position. Therefore, the information received could be not from representative growers.

The head of Sub-district Meraksa Aji has been assigned for 6 month in the Sub-District. The information given is sopposed to be valid. The Company should ensure cooperative’s efforts to socialize aspects that become a factor in price cutting related to costs imposed to plasma

members for maintenance and transportation costs. Proof that all parties understand the contract agreement they entered to, and that the contracts are fair, legal and transparent. – Observation

KKPA GALA Estate Religion Leader : Mr. KH Muhidin

Head of Village : Mr. Suraji - Confirmed no land conflict - The request information

always replied by company - There is company charity for

Islamic school

Company has the SOP for Information Request and Response. All information requests should be

responded for maximum 1 month.

Conform

KKPA MSJA Estate

Head of village Mesuji : Mr. Azhar Hidayatullah

- Access to village is shorter as people have the shortcut via

The company will conduct socialization for grading system at mill and also to introduce the types of rare and endangered flora and fauna surrounding village.

estate.

- Company provides scholarship to the local community.

- No socialization yet to local community to maintain rare and endangered flora & fauna - Local empowerment by

employ local people and contractor for FFB transporter - The company has conducted CSR program such as missal medication, glass aid, and bazaar.

- The grading system at mill is not clearly to the growers - There are an indigenous

people (Nenggala ethnic) but the location is about +/- 60 km from nearest estate.

Labor Union

Union Leader : Mr. Sopuan - Confirm that no child labor

employed

- Salary minimum for workers have been complied

- Regular Meeting has been conducted with supporting facility by management

Company has the policy to allow the worker to form the union labor. The evidence is circulating letter from CEO-2 No. 094/CEO2/SE/12/2010 dated 14/12.2011. Only one (1) labor union registered in the company.

Conform

Cooperation Krida Sejahtera Head of Cooperation : Mr. Miseri AJ Aminanto

- The plasma member is totally 17.062 member from 36 villages

- There is not yet socialization conducted regarding sexual harassment to the growers. - The grading methods have

been clearly defined and there are two (2) staffs present at the mill every day as a witness during grading process.

- There is no conflict land

The company will set up the program to ensure all representative growers and staff will be adequate socialize for sexual harassment issue.

among growers and company.

- Payment from company conducted twice per month and the payment time is always on time

B. 5. Date of Next Surveillance Visit

One (1) year after date of certification

C. Assessment Findings

C. 1. Lead Assessor’s Summary and Recommendation for Certification

The audit is conducted jointly Roundtable on Sustainable Palm Oil (RSPO) Certification Scheme and Indonesian Sustainable Palm Oil (ISPO) Certification Scheme. There are 2 (two) mills and 5 (five) estates has been audited at the same time during preliminary (June, 10th-14th2013) and certification audit (July, 15th-19th2013). Some of the issues between ISPO and RSPO are mainly same such as commitment to transparency, compliance with applicable laws and regulations, commitment to long-term economic and financial viability, environmental requirements, social aspects, best practices of estates and mill and continuous improvement. The significant differences which is only for RSPO requirements such as term of findings, HCV’s issue, SIA, sexual harassment requirement, specific requirements of contractor (should be meet with manpower regulation and well trained), and NPP requirement.

The audit conducted twice i.e. preliminary audit and certification audit. The scope of the audit for this unit is a mill (SBYM) and three (3) estates. Two (2) of the three (3) estates are smallholder schemes (KKPA Gedung Aji Lama (GALA) Estate and KKPA Mesuji (MSJA) Estate) and the own estate is Sungai Buaya Estate (SBYE). The Mill and estates has been visited during preliminary and certification audit (no sampling).

The management (Mill and estate) showed the commitment to the implementation of the principles and criteria of the RSPO NI-INA. The assessment has been carried out through field visit to head office, mill and estate.

The public announcement for certification has published on RSPO website prior 30 days from the audit certification to give the opportunity to stakeholders for comments and feedback. There is no a grievance or complaints received from the stakeholders during 30 days of public consultation period. Team auditors also conducted separate meeting with village head, local community, union labor team, and government official representatives. There is some clarification received regarding the HCV issue, conflict land, Socialization of Rare and endangered flora and fauna, transparancies, charity, etc.

There is 1 NCR minor and 10 Observations issued during certification audit. There is commitment of management to make corrective action and for continuous improvement. There is also improved plan for social and environmental area.

The audit team found that PT Sumber Indah Perkasa (Sungai Buaya Mill (SBYM), Sungai Buaya Estate (SBYE),KKPA Gedung Aji Lama (GALA) Estate, KKPA Mesuji (MSJA) Estate are complying against RSPO P & C approved for Indonesia. Therefore the recommendation of the Lead Auditor that Certificate of RSPO is awarded to PT Sumber Indah Perkasa – Sungai Buaya Mill and its estates.

Signed :

Tuti Suryani Sirait

C. 2. Summary of the Findings by Criteria

1 COMMITMENT TO TRANSPARENCY

1.1 Palm oil growers and millers provide adequate information to other

stakeholders on environmental, social and legal issues relevant to RSPO Criteria, in appropriate languages & forms to allow for effective participation in decision making.

Company has established SOP of Response to Request and Information (SOP/SPO/SMART/LH-01). List of information is in place that is accessible to relevant stakeholders, which is different between mill, main estate and plasma estate. Estate Manager is responsible for providing stakeholders with relevant information particularly information relating to social aspect.

In the Mesuji Plasma Estate, the person in charge of social aspect was appointed by the management through the letter of appointment no 016/RC-LAMPUNG/01/2012 that the MSJA Manager is responsible for social aspects and communication with stakeholders. All communication is recorded in the communication book for all stakeholders (internal and external). The majority of requests found in the list of stakeholder request are clean water supply request from the Community of Brabasan Village. Sampling is conducted on the Letter of request from Brabasan Village Manpower and Transmigration Service asking for labor and grass cutting equipment assistance, dated 12 Feb 2013 under the name of Drs. Rozali. Company has responded by providing assistance on 23 Feb 2013 evidenced by the minutes of hand-over of 1 unit of grass cutting equipment along with the operator. All forms of request for information are filed in a folder and indexed according to the date of incoming letter.

For GALA Plasma Estate, personnel responsible for communication with stakeholders are the GALA Manager who is established with management decision letter no. 12/SK-RC-Lampung/IV/2013. Any requests for information are recorded in log book. Recorded information requests comprise routine reports to government agencies in need. Communication and Consultation are recorded in a separate log book. In general, most request letter is asking for assistance of road repairs and surfacing from surrounding communities. Sampling was conducted on the letter of request from the Paduan Rajawali Village Chief dated 8 November 2012 containing a request for heavy equipment assistance. Company had followed it up on 26 November 2012 by conducting road repairs using Grader in Paduan Rajawali Village, Meraksa Aji District -Tulang Bawang and evidence of completion had been documented in the form of Minutes.

The records of information requests and responses are kept with retention time of 10 years.

Compliance status: Full Compliance

1.2 Management documents are publicly available except where this is prevented by commercial confidentiality or where disclosure of information would result in negative environmental or social outcomes

Confidential documents are documents outside the list of information to Stakeholder, such as commercial data and data causing negative impacts that are accessible only upon management’s approval, e.g. conflict data. In general, data may be accessed /asked by relevant stakeholders as long as relevant. In addition there are data that can be given only to relevant agencies, for example production data is given to the Regency and Provincial Plantation Service.

Compliance status: Full Compliance

2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

2.1 There is compliance with all applicable local, national and ratified international laws and regulations.

Company has made periodic evaluation of all regulations which is regulated through SOP/SPO/SMART/LH/03 (Legal and Other Requirements rev 01), which is evaluated per semester. Central office’s Sustainability division performs evaluation and the results are communicated to the units (estates and mills), which in turn will select those regulations relevant to them. Sampling of Mesuji Estate, personnel responsible for ensuring compliance with regulations related to ‘sustainable palm oil’ is under the responsibility of Sustainable Palm Oil Officer stipulated in decision letter no. 03/EM-MSJA/VI/2013. Company sorts regulation list according to the aspect s: environmental aspect, estate aspect, permit aspect, employment and occupational safety and health (OSH) aspect. Evidence of evaluation of the most recent regulations such as PP no 27/2012 relating to environmental permit has conformed. Other sampling of evidence of compliance with regulations has conformed such as company has conducted reporting routinely to relevant agencies, for example routine report to Jamsostek (worker’s social security).

Company previously has operating permit of one (1) mill for the capacity of 30 ton/hour. At the time of preliminary audit, a nonconformity was found in which the company had two (2) Milswith a capacity of 60 ton/hour each, totalled 120 ton/hour. At the time of certification audit, the company had been following it up by processing the IUP for Mills of 120 ton FFB/hour capacity. The company already has a letter from the Board of Investment and Regional Integrated Permit Service with No. 800/200/BID.V/II.06/2013 dated 1 July 2013 for the management of mills with a capacity of 120 ton FFB/hour.

Compliance status : Full Compliance

2.2 The right to use the land can be demonstrated, and is not legitimately contested by local communities with demonstrable rights

Company already has a letter from Forestry Department, Regional Office of Lampung Province no. 1052/Kanwil-6/TGH 134/90 dated 16 July 1990 stating that the area managed by PT Sumber Indah Perkasa, which is located to the East and bordering with permanent production forest of Sungai Buaya Reg.45,is not overlapping with the forest area.

Company has a Decree of Governor No. C/202/DA/HK /1989 on Land /Site permit and land use totaling 9,000 Haunder the name of PT Sumber Indah Permai. After that, there are site permit changes no. C/309/BPH/HK/1990 to become 9,522.11 Ha.

Company previous name is PT Sumber Indah Permai and then changes name to become PT Sumber Indah Perkasa. Change in the company name has been notarized by a Notary Deed dated 20 September 1990 (Benny Kristianto and associate) and secured in the Decree of the Minister of Justice no. C2-5826 HT.01.01.Th90./HK/1990.

Company already has a certificate of HGU from BPN with no. 1/HGU/BPN/93 totaling 9,522.11 Ha dated 30 January 1993.

Company already has a certificate of HGU that consists of :

totaling 5,058.82 Ha for the location of SBYE and SBYM. All HGUs will expire in 2027.

Company already has IMB no. 642/245/650/600/1995 totaling 5,995.4 M2for PKS SBYM.

Compliance status: Full Compliance

2.3 Use of land for oil palm does not diminish the legal rights, or customary rights, of other users, without their free, prior and informed consent.

Company is a takeover from earlier company in 1990. Company states that during the period from 1990 until the time of the audit there was no purchasing of land.

There is SOP of Land Conflict Settlement (SOP/SPO/SMRT/LH-04). So far the company and KUD inform that there was no dispute during the period from 2010 to the present time in the area around company site. It is said in the SOP to prioritize deliberation over legal action.

At the time of audit the Location Map of PT. Sumber Indah Perkasa No. Reg: 948/214/PMNP/VI/12 with the scale of 1 : 250,000 were showed. The map should have a sufficient scale of minimum 1 : 100,000 in accordance with Decree of the Ministry of Forestry No. 48/menhut-II/2004.

Compliance status : Observation no. 5

3 COMMITMENT TO LONG-TERM ECONOMIC AND FINANCIAL VIABILITY 3.1 There is an implemented management plan that aims to achieve long-term

economic and financial viability

PT SIP long term replanting program up to 2020 has been established. The replanting plan will commence in 2017 up to 2020 covering 5 estates with a total area of 23,443.87 Ha. For plantations under the SBYE Estate, including MSJA and GALA, replanting area is determined as follows :

- 2017 (planting year (TT) 1991) is 513.14 ha ; - 2018 (TT.1992) is 2,720 ha ; and

- 2019 (TT.1993) is 1,118 ha ;

Company has financial statement that has been audited by the public accountant office of Tanubrata Sutanto Fahmi & Rekan, in 2011. Tax report data for 2012 was not available yet but there is a statement letter dated 16 April 2013 issued by the public accountant office that it is under audit completion process.

Compliance status : Full Compliance

4 USE OF APPROPRIATE BEST PRACTICES BY GROWERS AND MILLERS 4.1 Operating procedures are appropriately documented and consistently

implemented and monitored

- SOP and WI related to new planting, issued 1/7/2010.

- SOP on New Land Opening (SOP/SMART/MCAR/IV/TA-PLB), rev.0, issued 1/9/2012. Point 2.2.6 Preparation regulates on: terracing and horseshoe shaping (tapak kuda).

- There is IK /SMARTR/MCAR/TA-PPA/01 on Drainage

- Records of nursery maintenance are not available since there is no longer nursery activity. - SOP/SMART/MCAR/V/TA-TNM, 1/9/2012. SOP on Planting

- There is IK/SMART/MCAR/V/TA-TNM/01- Lining Flat to Wavy Area and also guidance (table) from Plant Density in Flat Area.

- In SOP and orWIthe plant density is set at 136/ha.

In general, the company already has SOP on Land Preparation Technical Guidelines (Palm Oil) that constitutes a collection of SOP and WI related associated with new planting. issued 1/7/2010. SOP on New Land Opening (SOP/SMART/MCAR/IV/TA-PLB), rev.0, issued 1/9/2012.Point 2.2.6 Preparation regulates on: terracing and horseshoe shaping (tapak kuda). Also, there is IK /SMARTR/MCAR/TA-PPA/01 on Drainage system.

There are SOP on Nursery Bed (SOP/SMART/MCAR/III/TA-BBT, rev.00,1/9/2012) and IK/SMART/MCAR/III/TA-BBT/06, Seedling Acceptance and Planting. But both do not regulate the use of certified seedlings yet at the time of audit stage I. Nevertheless, at the audit stage II the company had issued a Memorandum from VPA PSM2 (D. Sivasanker) No. 001/MEMO-VPA PSM 2/07/2013 dated 1 July 2013 on the use of certified seedlings as evidence of commitment to the established SOP and WI (conform).

There is Form of Oil Palm Seedling Selection (FORM/III/TA-BBT/06-Seedling Acceptance and Planting /01 Selection.

IK/SMART/MCAR/III/TA-BBT/08-PN Selection, starting from selection at 2 months old and at transplanting, counting abnormal seedlings (criteria exists), and documenting/recording/reporting all reject seedlings. Figure 1. Types of Reject Seedlings. Recorded in the form of Pre Nursery Oil Palm Seedling Selection Sheet (FORM/III/TA-BBT/08-Seleksi PN/01, rev.00, rejection is classified into: RL, C, TS, CM, TS, etc.

There is no data on planting plan and realization since there is no longer planting activity in all estate areas of Sungai Buaya Estate (SBYE), KKPA Mesuji (MSJA) Estate, KKPA Gedung Aji Lama (GALA) Estate. At the time of audit stage I there was no SOP on planting on a peat land. However, at the time of audit stage II verification was made on Work Instruction IK/SMART/MCAR/III/TABDT/06- IK on Planting on a Peat Land Rev.00 dated 26 March 2012 for the above three (3) estate areas.

Compliance status : Full Compliance

4.2 Practices maintain soil fertility at, or where possible improve soil fertility to, a level that ensures optimal and sustained yield

Sop on Maintaining Unproductive Plants SOP/SMART/MCAR/X/TA-PTB

Work Instruction on Plant Census IK/SMART/MCAR/X/TA-PTB/01-Plant Census Work Instruction on Insertion IK/SMART/MCAR/X/TA-PTB/02-Insertion Work Instruction on Measuring Plant

Growth

IK/SMART/MCAR/X/TA-PTB/03-Measuring Plant Growth

Work Instruction on Constructing And Installing Harvest Ladders

IK/SMART/MCAR/XI/TA-PMP/04-Constructing And Installing Harvest Ladders

Work Instruction on Maintaining Weeded Circle, Harvest Path, Control

IK/SMART/XII/TA-PTM/01-Maintaining weeded circle, harvest path, control path and collection path

Path and Collection Path

Sop on Harvest Preparation SOP/SMART/MCAR/IX/TA-PMP Work Instruction on Developing

Pollinating Weevil

IK/SAMRT/MCAR/XI/TA-PMP/01 - Developing Pollinating Weevil

Work Instruction on Castration IK/SAMRT/MCAR/XI/TA-PMP/02- Castration Work Instruction on Sanitation IK/SAMRT/MCAR/XI/TA-PMP/03-Sanitation Work Instruction on Constructing And

Installing Harvest Ladders

IK/SAMRT/MCAR/XI/TA-PMP/04-Constructing And Installing Harvest Ladders

Work Instruction on Maintaining Weeded Circle, Harvest Path, Control Path and Collection Path

IK/SMART/MCAR/XII/TA-PTP/01-Maintaining weeded circle, harvest path, control path and collection path Sop On Maintaining Productive Plants SOP/SMART/MCAR/XII/TA-PTM

Work Instruction on Tree Census IK/SMART/MCAR/X/TA-PTB/01-Tree Census Work Instruction on Maintaining

Weeded Circle, Harvest Path, Control Path and Collection Path

IK/SMART/MCAR/XII/TA-PTP/01- Maintaining Weeded Circle, Harvest Path, Control Path and Collection Path

Sop on Maintaining Space Between Palm Rows

SOP/SMART/MCAR/VIII/TA-PGM

Sop on Weeding SOP/SMART/MCAR/VIII/TA-PGM

Sop on Maintaining Roads, Drains and Bridges

SOP on New Land Opening SOP/SMART/MCAR/IV/TA-PLB Sop on Pest and Disease Control SOP/SMART/MCAR/VII/TA-HPT Work Instruction on Pruning and

Stacking of Fronds

IK/SMART/MCAR/XII/TA-PTM/02-Pruning and Stacking of Fronds

Sop on Fertilizing SOP/SMART/MCAR/IX/TA-PPK

Sop on Harvesting SOP/SMART/MCAR/XIII/TA-PNN

Attachment to Work Instruction on Ripe Fruit Criteria in Mill

LAMP/XIII/TA-PNN/01- Ripe Fruit Criteria in MILL Work Instruction on Harvest IK/SMART/MCAR/XIII/TA-PNN/01-Harvest Sop on Loading and Transporting FFB SOP/SMART/MCAR/XIV/TA-PPT

Work Instruction on Loading FFB SOP/SMART/MCAR/XIV/TA-PPT/01-Loading FFB Work Instruction on Transporting FFB SOP/SMART/MCAR/XIV/TA-PPT/02- Transporting

FFB Work Instruction on Installing Nets and

Seals

SOP/SMART/MCAR/XIV/TA-PPT/03-Installing nets and seals

There is no TBM maintenance because the youngest is the planting year 2000 - TM maintenance includes:

(1) Tree census,

(2) Maintenance of weeded circle, harvest path, control path, and collection path (3) Maintenance of space between palm rows

(4) Weeding

(5) Road and bridge maintenance (6) Pest and Disease Control

(7) Pruning and Stacking of Fronds Maintenance activities are recorded in: - Foreman Activity Log (BKM) – daily - Work Outcome Log (BHK) – wholesale.

- For main estate, the content of BKM and BHK is inputted into Check roll program (SAP), while for Plasma, the BKM is summarized in the Report of Plant Maintenance.

Compliance status: Full Compliance

4.3 Practices minimize and control erosion and degradation of soils

Company has protected river border area by clearing free from oil palms with clearance space of 50 meter from river edge, and the river banks are planted with bamboo and fertifer grass to prevent erosion. The document is SOP of PT. SIP-GALA/SOP/34 Revision 00 dated 1 March 2012. The details of rivers location and condition are described in Criteria 5.2 (HCV).

Compliance status: Full Compliance

4.4 Practices maintain the quality and availability of surface and groundwater. Revised ANDAL Document of AMDAL of Oil Palm Plantation and Oil Palm Processing into CPO, sources of water from Sungai Buaya and Sungai Merah. There are 3 drilled wells. The depth of drilled wells are 10-15 meter

Company already has SIPA permit from the Government of Mesuji Regency, the Mining and Energy Department, No : 540/06/SPKTS-SIPA/III.14/MSJ/IV/2013, ± 100 m depth drilled well permit, covering Mesuji Estate and Sungai Buaya Estate, 7 April 2013

Water needs for Mill 1 ton TBS are 1.5 m3of water, for domestic needs are 100 m3/day, so with mill with a capacity of 60 ton TBS per hour, the total use of river water is 2,800 m3/day.

The efficiency of water use for processing in the SBYM in 2013 from January to April is 0.712 m3 per ton TBS.

The efficiency of water use for processing in the SBYM in 2012 from January to December is 0.905 m3ton TBS, where the target of 1.5 m3per ton TBS has been achieved.

Areas at Buaya River and Tapa River have been planted with bamboo to prevent erosion.

The results of surface water measurement can be found in RKL and RPL that cover Sungai Buaya, Sungai Merah mill, and 4 resident wells.

Organization has measured the quality of clean water in the resident wells with 4 resident well sampling points. The results of clean water quality measurement of resident well number 3 is below the BML = 50 for coliform biological factor, for pH the resident well number 1 and 4 are below the BML = 6.5 - 9

Company has measured the SBYM liquid waste, with results is appropriate with the requirements of KepMenLH No. 29 of 2003. Routine measurement is conducted every 6 months according to the activity in the RKL and RPL that conduct measurement and reporting every 6 months to BLH of Mesuji Regency, BLH of Lampung Province, and KLH Jakarta (SBYM), and to BLH of Tulang Bawang Regency, BLH of Lampung Province, and KLH Jakarta.

Organization conducted environmental measurement during the period of Semester I of 2013 that covers surface water and groundwater. For the SBYM area it covers Tapa River. The regulatory references are the Regulation of the Governor of South Sumatera No. 16/2005

(Attachment I). The measurement results do not exceed the Environmental Quality Standard requirements yet. The results will be reported to the government in accordance with RKL and RPL requirements.

On 1 May 2013, the organization conducted the measurement of Tulang Bawang river upstream and Tulang Bawang river downstream in Gedung Aji Lama KKPA, executed by SMART Research. The results of river water analysis, SMARTRI-Form-PSM-27-01, revision: 00. Measurement results are in accordance with BML.

On 20 May 2013 the organization conducted measurement of surface water quality in the area of MSJA and GABA, by Environmental Laboratory, Environmental Body, the Government of South Sumatera Province. This body also has obtained KAN accreditation as an environmental testing laboratory. The measuring standards are the Governor Regulation No. 16/2005.

Compliance status: Full Compliance

4.5 Pests, diseases, weeds and invasive introduced species are effectively managed using appropriate Integrated

The company has the SOP on Plant Disease and Pest Control (SOP/SMART/MCAR/VII/TA-HPT, 1/9/2012)

The data found for IPM program at SBYE, KKPA Mesuji and KKPA GALA: (1) rat census 2012-2013, carried out quarterly,

(2) UPDKS (Oil Palm Leaf Eating Caterpillar), monthly since 2009-2013.

(3) Maintenance of Bio controls Plants (APH), 2009 – 2013, monthly, covering: Turnera subulata,Antigonon sp. and Nephrolephis biesserata.

(4) Census officer, there are 3 personnel for each division (SBYE) – there is caterpillar census implementation. The officer has been trained and supporting data such as photographs, attendee list, trainer from Regional Research Unit, Integrated Pest Control Training Module. (5) Sprayers, for SBYE there are 2 groups @24 personnel. For GABA there are 1 group @10 personnel. There is evidence of Training Attendee List of Restricted Pesticide Use, 18/10/2011 for SBYE and GABA. There are 64 attendees.

(6) Training for Sprayer (SOP and WI), evidence such as attendee List of on 27 /4/2013. There is SOP on Plant Disease and Pest Control (SOP/SMART/MCAR/VII/TA-HPT, 1/9/2012).

Compliance status: Full Compliance

4.6 Agrochemicals are used in a way that does not endanger health or the environment. There is no prophylactic use of pesticides, except in specific situations identified in national Best Practice guidelines. Where agrochemicals are used that are categorized as World Health Organization Type 1A or 1B, or are listed by the Stockholm or Rotterdam Conventions, growers are actively seeking to identify alternatives, and this is documented

Handling of Pesticide Waste

made of Polymex material.

Non polymex material is collected in a special warehouse after being handled in accordance with WIon Washing and Cleaning of Pesticide Packaging’s and Fertilizer Bags, SIP-SBYEIK/19, No. Revision: 00 approval dates 1 March 2012.Companyhas provided facilities for mixing pesticide, washing used pesticide packaging’s, washing used Fertilizer Bags, washing pesticide apron, and bathroom for sprayer personnel.

SBYE, MSJA KKPA & GALA KKPA

At the time of audit stage I there was still waste water from sprayer bathing activities flowing into public sewer at SBYE. The organization has repaired it and directed the effluent from sprayer bathing activities into a septic tank.

Pesticide hazard warning signs have been displayed in washing facilities in all areas.

Used pesticide packaging’s already washed are stored in a special warehouse (which also contains used paint and thinner cans) and picked up by Hazardous and Toxic waste collector service company PT Primandu Jaya. The company has obtained Hazardous and Toxic waste collector and transporter permit from the Ministry of Transportation, Directorate General of Land Transportation for transporting Hazardous Materials, No. AJ.309/50/019/DJPD/2012/36005114. Pesticide waste handling is already regulated in pesticide work instruction, WIon Washing and Cleaning of Used Pesticide Packaging’s and Fertilizer Bags, SIP-SBYEIK/19, No Revision: 00 with approval date of 1 March 2012. However, it is written in the WI that the collection place is in TPS Hazardous and Toxic, whereas in implementation not in TPS Hazardous and Toxic but in a warehouse in which there are also used paint and thinner cans. Company needs to provide hazardous waste warning signs in the warehouse.

In the bathing room for sprayers after completing their tasks in MSJA, the water flows to a septic tank.

In GALA, waste water from sprayer bathing room is flowing to a septic tank.

Company already has a list of agricultural and forestry pesticide recommended by Pesticide Commission of the Republic of Indonesia both synthetic and natural for weeds and caterpillars such as, among others, synthetic herbicide Rolixon, Gromoxone, Roll up and natural insecticide Cordiceps for ulat api pest control. However, company should reduce the use of herbicide of paraquat active substance (restricted pesticide), and use herbicides for weeds that are powerful but safe for operators in the long run (observation).

Compliance status: Observation no. 2

4.7 An occupational health and safety plan is documented, effectively communicated and implemented

Company has established and implements occupational safety and health management system to fulfill the obligation as per government regulation. Evidence of implementation found as follows :

- Has established Occupational Safety, Health and Hygiene Policy of PT. SIP – Lampung Region, dated 2/9/2011. The policy was signed by the officials of RC, PC, and PUKSPSI. The policy goal is continually seeking to reduce hazards leading to work accidents that result in injuries, work related diseases, goods damage, fire and explosion as well as production process disruption and environmental pollution. Socialization of OSH Policy is carried out in class, through training, meetings, morning calls, morning circles, as well as displayed in the

workplace.

- Company has had and established OSHAS documentation that includes OSHAS Manual, SOP/Procedures, Work instructions and forms that has been implemented per 1 July 2010. Currently, most of documentation has undergone revision once.

The company has the Organizational structure and personnel in charge of OSH aspects, i.e. OSH Officer. In order to comply with government regulatory, the Company has established P2K3 team in each Unit, consists of General OSH Expert (AK3U) who serves as the Team secretary and team leader which are the Unit’s Manager. All P2K3 Teams have obtained approval from local manpower agency. The approval data are as follows:

SBYM :

P2K3 Team was established with SK No. 560/8/III.04/MSJ/P2K3/III/2013 dated 22/10/2010 by Mesuji Manpower and Transmigration Service. The Secretary is Hermawan Berliana with appointment letter No. SKP.1554/DJPPK/AK3-U/VII/2010, dated 26/7/2010.

SBYE :

Division II, Blok 14 - 15

P2K3 Team is valid for 2013-2015 period, with approval of SK No. 560/46/HIPK/II.TB/P2K3/IV/2013 dated 15/4/2013, from Social, Manpower and Transmigration Service of Tulang Bawang Regency. The Secretary is Piki Ardiansyah, as AK3U, with appointment letter No. KEP.4120/M/DJPPK/I/213 dates. 7/1/2013.

PPE has been equipped by the company such as: boat, helmet, glass for all harvesters. GALA KKPA :

P2K3 Team has obtained approval from Social, Manpower and Transmigration Service of Tulang Bawang Regency with No. Kep:560/36/HIPK/II.TB/P2K3/IV/2013 with Secretary Ifriansyah as General OSHExpert.

MSJA KKPA :

P2K3 Team has obtained approval from Social, Manpower and Transmigration Service of Tulang Bawang Regency with No. Kep:560/45/III.04/MSJ/P2K3/6/2013 dated 10 June 2013 with Secretary Hendri Kustiwan. Appointment Letter No. Kep: 2266/M/DJPPK/X/2011 dated 6 October 2011.

P2K3 Team has been conducting routine monthly meetings, on a regular basis. Minutes of meeting are already listing the topics, description of meeting/discussion results, due date of settlement follow up (start, finish), and PIC. The completion status of each case complete with completion date, and if not yet completed then sit will be brought to the next meeting.

All work units under PT. Sumber Indah Perkasa has included its employees in the Social Security Program (Jamsostek), starting from daily wage workers (BHL), PKWT, and SKU. The program varies in package according to the employee status. Those with BHL status will be included after 3 consecutive months because their status rises to Daily-SKU (SKU-H). Employees with SKU-H and PKWT status are only included for ½ packages, i.e. only JKK and JKM, where as employees with Monthly-SKU (SKU-B) and SKU status up to staff get full

package programs, namely: JKK, JKM, JHT, and JPK. List of Jamsostek membership is stored and recorded on manpower data base, and already has KPJ Number. But PKWT in particular, does not have KPJ number. The Jamsostek Insurance is not willing to give KPJ Number for reasons of non-permanent status.

The company has conducted worker health examination of BHL, PKWT, and SKU. Evidence of examination can be shown as follows:

1) There is a recapitulation of staff and employee health examination results in 2013: (a). SMRM, examination date: in stages from the 2ndto 5th month of 2013, for 168 workers (SKU+PKWT). (b). SBYM, examination date: in stages from 2ndto 4thmonth of 2013, for 88 workers. Those not yet examined are planned to be examined in July, 2013. (c). SMRE, examination date: in stages from 2ndto 4thmonth of 2013. And (d) SMRE, examination date: in stages from 2ndto 4thmonth of 2013.

Company has issued a Policy for medical examination, on Lampung Region Worker Health Examination, approved by the Regional Controller and Production Controller, dated 1/6/2011, containing prior-employment, periodic, and specific examination. During preliminary audit, the examination of cholinesterase aspect has not been conducted for workers who work closely with Hazardous and Toxic, such as: sprayers, Hazardous and Toxic waste officers, chemical warehouse and laboratory officers. Application for this examination has just submitted. Also for personnel working in the noisy area, the audiometry measurement has not been conducted. At the time of the audit stage 2, company has been conducting cholinesterase and audiometry examination for these personnel. Spirometry examination should also be programmed for sprayers, Hazardous and Toxic waste, chemical warehouse and laboratory personnel.

The company also provides health care service by establishing a Clinic located in the SBYE Central Office. The clinic had received permit from the Department of Health of Tulang Bawang with Private Health Care Service License No. 455/503/014/SIT-BP/DK-TB/III/2004, dated 19/3/2004 and valid until 01/4/2007. License reapplication is currently under process in connection with the regency expansion so that the status of the clinic becomes under the Mesuji Regency. The clinic is led by a company doctor and a paramedic, both are medical certified. Employees have medication in the clinic free of charge, for both PKWT and BHL status. The service also covers the employee’s family.

There is a Procedure for Hazard Identification, Risk Assessment and Risk Control (HIRARC) (No. SOP/17/SMART/LH-02, Rev. 01). Company has conducted ISBPPR that covers the whole Estate and Mill. The IBPPR results are recorded in Risk Analysis Form (FP 11/17-SOP-02) and Risk Analysis Follow up Form (FP 11/17-SOP-02). The reference for preparation is the ASNZ method. Preparation of ISBPPR for Estates covers from maintenance (fertilizer, spraying, space between palm rows, OPT, roads), harvesting, emplacement maintenance, warehouse, workshop (all machinery), clinic, central office, washing place for keep and Fertilizer Bags (shower sprayers).

As for Mills, it has covered the entire process from transport, security, weighbridge, TBS grading, loading ramp, transfer carriage, sterilizer, tippler, thresher, press, clarifier, boilers, kernel, engineering, effluent, workshop, warehouse, Hazardous and Toxic warehouse, diesel fuel tank, lab, office, CPO dispatch, machine unit installation, fire engines, and vehicle traffic. ISBPPR is reviewed annually to see the effectiveness of earlier risk control application. If deemed necessary, the additional control will be added until "low" (L) risk level is achieved. This activity is carried out together between the operating officials and the P2K3 Secretary and Chairman. In each Unit company has conducted a number of training related to safety and health (OSH)

aspects, some of which can be reported as follows: SBYE, MSJA and GALA Units:

- First aid Training, 21/5/2013, by dr. Wiyangga, from the clinic. 6 participants (4 foreman and 2 assistant clerks), materials include simulations on how to deal with accidents.

- Socialization of ISCC, ISPO, RSPO, OSH, P3K, APD, MSDS, on29/05/2013. There were 13 participants. The presenter was OSH officer.

- Socialization of procedure for handling natural disaster and fire (KTD), on 16/03/2013. Participants were 7 security personnel.

- First aid Training, combined participants of Regional level, totaling 75 participants, on 10/10/2011.

- General OSH Expert for P2K3 secretary.

- Restricted pesticide use training, on 18/10/.2011, participants from SMRE with a total of 67 participants, on 19/10/2011. There was “Restricted Pesticide User Certification” from the Department of Agriculture, Food Crops and Horticulture of Lampung Province.

- Special skill training, including: welder and heavy equipment operator license. SBYM Unit :

- First aid Training, 21/5/2013, 11 participants (4 foremen, 1 security personnel, book keeper, 2 analysts, nurses, P2K3 secretary, cashier).

- Socialization of MSDS on 14/5/2013 at SBYM to48 workers by OSH officer. - Special skill training, including: welder and heavy equipment operator license.

Company has developed and established SOP related to fire prevention and mitigation, i.e.: - SOP on Emergency Handling (SOP/SMK3/SMART/LH-09), applicable in Estates and Mills. - Technical guidelines for dealing with emergency situation in the form of Emergency Response

Mechanism Diagram contained in form of FP 02/SMK3-SOP-10, according to conditions, i.e. : (1) Fire

(2) Hazardous and Toxic Spill Handling (3) Earthquake

(4) Chemical Poisoning through Ingestion.

These SOPs have been effective since 1 July 2010.Socialization has been carried out to all workers by means of displaying at strategic locations, such as: Estate office, division office, Mill office, workshop, and parking area in the form of banners or billboards.

Company has established Emergency Response Team by appointing its personnel. The capacity to prevent and mitigate fire is sought to by providing the following training :

- SBYM Unit, some of the Dry Powder Squad members have attended training in the use of portable extinguishers (Light Fire Extinguisher), dated 20/11/2010, but, only 2 out of the 7 squad members, i.e. Sudarso and Sugiarto.

- GALA Unit, Light Fire Extinguisher training has been conducted as seen in the List of Attendees of Light Fire Extinguisher Training, dated 7/6/2013. But, out of the Light Fire Extinguisher Team members, there is one not yet attending the training i.e. Sulisiyanto.

- SBYE Unit, some of the Light Fire Extinguisher Team members have attended Light Fire Extinguisher training on 29/05/2013 and 20/11/2011 in Division 1 office. But out of that number of Light Fire Extinguisher Team the TTD/ERP Structure has not received training.

- MSJA Unit, Light Fire Extinguisher training has been delivered on 20 June 2013, which is attended by all Light Fire Extinguisher Team members.

Company has provided fire control/mitigation facilities and infrastructures as follows: - SBYM Unit

In the Checklist of KTD Equipment dated 3 June 2013, it is recorded : (1). 35 Light Fire Extinguishers in 35 locations;

(2). 4 units of pillar hydrant and 4 boxes of corresponding equipment (hoses and nozzles) at 4 strategic locations at St. Sterilizer, St. Boiler, St. Kernel, and St. Clarification;

(3). Sandbag along with spades at 4 locations; and

(4) Eye washers and showers in 5 locations (lab, CaCO3 warehouse, LB-3, oil warehouse and WTP). Company also has developed Evacuation Map and Map of Fire Sensitive Area provided with location points of Light Fire Extinguisher, hydrant, eye washer/shower, direction arrow of evacuation route, and 2 assembly points. It is suggested the company completed the information on important telephone numbers to be contacted in the case of emergency.

- SBYE, MSJA and GALA Units

In the Summary Report of Light Fire Extinguisher checking dated 28 May 2013, it was found : (1). 41 Light Fire Extinguishers distributed in 41 locations in the entire estate area covering central office, fertilizer warehouse, diesel fuel warehouse, oil, spare part, LB3, division office, mess, staff housing.

(2). 1 unit of water tanks, 1 portable water pump provided with hoses and nozzles/guns.

Company has conducted routine inspection of Light Fire Extinguisher and hydrant and recorded the results using PMKS Patiware Light Fire Extinguisher and Hydrant Monitoring form, which that is carried out monthly. There is evidence of implementation for December 2012 and January 2013. This activity is carried out by workshop foreman, verified by assistance workshop and acknowledged by Mill Manager.

In dealing with emergency situation, company has established Emergency Response and Preparedness (ERP) as follows:

- Emergency Response and Preparedness Organizational Structure has been established for each Unit, covering SBYM, SBYE, Mesuji and GALA. The KTD structure was developed by P2K3Secretary and approved by P2K3 Chairman (Unit Manager). The structure is composed of Team Leader, Deputy Team Leader, General Assistant, Executive Chairman, Secretary, Fire Extinguishing Team (Dry Powder, Hydrant, Sand, Wet burlap, Hook), Evacuation Team, Security Team, Connecting team, Eliminating Team, and Health Team.

For SBYM mill area, company should have fire mitigation officers in accordance with the provisions of the Decree of the Minister of Manpower No. 186/MEN/1999. Based on Annex 1 and 3, a processing plant (Mill) is classified as vegetable oil mill with Moderate Fire Potential III. A factory with a total workforce of over 100 people should have fire mitigation officers: 1 for class A, 1 for class B, 5 for class C, and 12 for class D. At the time of the audit stage 2, the Company had carried out Fire Simulation Training, dated 05/07/2013 from the Department of Social, Manpower and Transmigration, Tulang Bawang, to 20 people. However, this is only a fulfillment for class D. Company is strongly encouraged to comply with these provisions and required to program it in subsequent years.

Company has conducted various efforts related to fire prevention and mitigation, and kept the recorded report properly. Activities carried out in various unit areas (Estates and Mills) are as follows:

SBYM Unit:

- Fire simulation was conducted on 5/6/2013.

Sucofindo ICS FRM 14.05

5 Obs 2.3 1 TSS/GG

U

Organization has made a map but the map should have a sufficient scale, at least 1 : 100.000 in

accordance with Decree of the Ministry of Forestry No. 48/menhut-II/2004.

The company has the different scale for all maps.

Map will be adjusted to be scale 1 : 100.000

Evidence :

Map with the scale 1:100.000

Closed

6 Obs 5.2 1 TSS/GG

U

Organization had SOP on HCV Management, it specifies that monitoring or patrol is carried out every two weeks but in GALA the last monitoring is on 24 June 2013.

KKPA GALA Estate has no data for monitoring HCV for July 2013.

HCV monitoring and patrol will be conducted every 2 weeks.

Evidence :

HCV Monitoring and patrol is available.

Closed

7 Obs 5.2 1 TSS/GG

U

Organization has performed monitoring and contained in HCV Monitoring Report, but it should establish Person in Charge (PIC) and due date of the recommendation specified in the HCV monitoring report to see the follow up and progress of such recommendation.

There is no column for PIC and Action Plan at Form HCV Monitoring.

Completed the form with edit PIC and Action Plan. Column.

Evidence :

Revision of Form HCV Monitoring.

Closed

8 Obs 4.7 1 WS Company already complete with the provisions of Decree of the Ministry of Manpower No. 186/1999 related to the number of fire mitigation personnel in mill area. But it only trained 20 personnel for both mills (it should be 12 personnel for each mill). It should ensure to gradually conduct training to cover the remainder in class D, C, B and A.

The simulation of fire fighting has conducted but the number of the fire fighter was not meet with the government

regulation (Kepmenaker No. 186 Tahun 1999).

To fulfill the number of fire fighter to meet with the Kepmenaker No. 186 Tahun 1999.

Evidence :

Documentation of fire fighter training.

Sucofindo ICS FRM 14.05

9 Obs 4.8 1 WS In GALA, two SPKs are

found not expresivvely specifying the provisions of PPE mandatory use. They are SPK No.

027/GALA/JKTO/04/2013 – Box Culvert, and SPK No. KUD-KS/GALA/SPKL-L/January-12-/010-FFB Transportation &Loading.

During tender process, the requirement of safety aspect has been informed to the contractor, but when the MoU issued there is no safety requirement stated.

In every MoU, the safety standard should be stated mandatory.

Evidence :

The revision of MoU.

Closed

10 Obs 8.1 1 TSS Companyshould develop a specific method to evaluate the effectiveness of CSR program done as input to future program

improvement.

Yearly CSR Program has been setup for each unit, but not yet covered the culture program. For the strategic planning year 2014-2018 has

addressed the vision and mission to develop and maintain the culture of local people.

The company will re-identification the existing indigenous people. If there is then the company will setup the CSR to develop and maintain the culture of indigenous people.

Evidence :

Revise CSR Program.

Closed

11 Obs 6.10 1 TSS Company should ensure cooperative’s efforts to socialize aspects that become a factor in price cutting related to costs imposed to plasma members for maintenance and

transportation costs. Proof that all parties understand the contract agreement they entered to, and that the contracts are fair, legal and transparent.

The company has conducted the socialization to the cooperation staff and coordinator staff, regarding the factor in price cutting related to costs imposed to plasma members for

maintenance and transportation costs. But the socialization was not sufficient some of the members were found well not understand for the subject.

The company will conduct monthly meeting and to socialized the factor in price cutting related to costs imposed to plasma members for maintenance and transportation costs. Evidence :

The documentation of meeting schedule between company and cooperation is available.

Sucofindo ICS FRM 14.05

APPENDIX

PT. SUMBER INDAH PERKASA – SUNGAI BUAYA MILL

RSPO SUPPLY CHAIN CHECKLIST – MASS BALANCE MODUL

PT. Sumber Indah Perkasa – Sungai Buaya Mill (SBYM)

is implemented the supply chain

system procedures as required in RSPO certification. The company has set the supply

chain system categorized as Mass Balance scheme.

A. Documented Procedures

1.1 Complete and up to date procedures covering the implementation of all the elements in these requirements.

Records/Evidence:

There is procedure

SOP Identifikasi dan kemampuan-telusuran (SOP

Identification and Traceability)

PT SIP

‐

SBYM/SOP/01, issued : 02/01/2012

The name of the person having overall responsibility for and authority over the implementation of these requirements and compliance with all applicable requirements. This person shall be able to demonstrate awareness of the facilities procedures for the implementation of this standard.

Records/Evidence:

Management Representative related to RSPO-SCCS implementation

Traceability Officer related to RSPO

_‐

SCCS implementation

SBYM: Decree No. 006/PC

‐

SBYM/III/2013

Document Controller – SPO Officer related to RSPO

‐

SCCS implementation

SBYM: Decree No. 003/FM

‐

SBYM/III/2013

1.2 The facility shall have documented procedures for receiving and processing certified and non-certified FFBs.

Records/Evidence:

•

SOP Identifikasi dan kemampuan-telusuran (SOP Identification and

Traceability)

PT SIP

‐

SBYM/SOP/01, issued : 02/01/2012

•

Surat Pengantar Buah (Fruit Delivery Letter)

(SBYE, GALA & MSJA) with

‘’Mass Balance’’ mark SBYM:

Form Rekap Penerimaan TBS Per Unit (FFB

Receiving Resume Form each Unit)

•

CPO Production Report

SBYM = 66,926.180 Ton/Year (with average OER : 22.08)

Recapitulation data of FFB certified received/process & CPO production from

January to December 2012

•

PK Production Report

SBYM = 16,420.640 Ton/Year (with average KER : 5.42)

Recapitulation data of FFB certified received/process & PK production from

January to December 2012

•

CPO Dispatch Report

SBYM= 65,285.310 Ton/Year

•

PK Dispatch Report

Sucofindo ICS FRM 14.05

SBYM= 16,056.510 Ton/Year

B. Purchasing and goods in

2.1 The facility shall verify and the document the volumes of certified and non-certified FFBs received.

Records/Evidence:

•

There is procedure

SOP Identifikasi dan kemampuan-telusuran (SOP

Identification and Traceability)

PT SIP

‐

SBYM/SOP/01, issued : 02/01/2012

• There is a database system calledWeightbridge Computerized Program which has

been designed to separate certified and non-certified incoming FFB from own estate, Scheme small holders and independent small holders with the specific code in database.

2.2 The facility shall inform the CB immediately if there is a projected overproduction. Records/Evidence:

•

SOP Identifikasi dan kemampuan-telusuran (SOP Identification and

Traceability)

PT SIP

‐

SBYM/SOP/01, issued : 02/01/2012 has been stated if

there is a projected over production then the acion will be taken as belows:

•

Inform related RSPO certification body and RSPO IT System.

•

Re-analyze production data and mass balance report.

•

Calibrated and recheck for the bridge and supporting equipments.

•

To define the projection of certified product considering the error rate

(contamination) for maximum 5% from the total projection data.

C. Record keeping

3.1 The facility shall maintain accurate, complete, up-to-date and accessible records and reports covering all aspects of these requirements.

Records/Evidence:

• Surat Pengantar Buah (Fruit Delivery Letter) (SBYE) with “Mass Balance” mark Form rekap Penerimaan TBS per Unit (FFB Receiving Resume from each Unit)

• CPO Production Report (daily, three-monthly, and annual)

All documents and records have been in controlled according to SOP Pengendalian Dokumen dan Rekaman (SOP Document Control and Record Control)

SOP Pengendalian Dokumen (SOP Document Control) PT. SIP-SBYM/SOP/18 Rev.00,dated 02/01/2012

SOP Pengendalian Catatan, dated 02/01/2012 PT. SIP-SBYM/SOP/12 Rev.00,dated 02/01/2012

3.2 Retention times for all records and reports shall be at least five (5) years. Records/Evidence:

Retention times of all records have been determined in SOP Pengendalian Dokumen dan Rekaman (SOP Document Control and Record Control)

Retention time for all records and reports of PT. Sumber Indah Perkasa is 10 years.

3.3 The facility shall record and balance all receipts of RSPO certified FFB and deliveries of RSPO certified CPO, PKO and palm kernel meal on a three-monthly basis.

Records/Evidence:

The company has the monthly, three-monthly, and annual report which contain record and balance all receipts of RSPO certified FFB and deliveries of RSPO certified CPO and PK. (SBYM Mass Balance Monthly Report, SBYM Mass Balance Three-Monthly Report, and SBYM Mass Balance Annual Report)

Sucofindo ICS FRM 14.05 accounting system according to conversion ratios stated by RSPO.

Records/Evidence:

There is a database system called Weightbridge Computerized Program which has been designed to align and integrate from the material accounting system according to conversion ratios stated by RSPO. The supporting data such as:

•

Massa Balance Report ; Daily, Monthly, Three-Monthly, and Annually CPO

Production Report

•

Surat Pengiriman CPO dengan Cap ‘’ Massa Balance’’ (CPO Dispatch

Letter with “Mass Balance” Mark)

•

Tiket Timbang Pengiriman CPO dengan Cap ‘’Mass Balance’’ (CPO

Dispatch Weight Ticket with “Mass Balance” Mark)

The facility can only deliver Mass Balance sales from a positive stock. However, a facility is allowed to sell short.

Records/Evidence:

Can be trace down inCPO Stock Reportand inCPO Dispatch Report

3.4 The following trade names should be used and specified in relevant documents, e.g. purchase.

Records/Evidence:

Can be trace down inSales Contract D. Sales and good out

4.1 The facility shall ensure that all sales invoice issued for RSPO certified products delivered include the following information: a) The name and address of the buyer; b) The date on which the invoice was issued; c) A description of the product, including the applicable supply chain model (Segregated); d) The quantity of the products delivered; e) Reference to related transport documentation.

Records/Evidence:

The available evidence is the invoice of oil delivery in form ofDelivery Order (DO)document issued for every oil delivery. The information written on the Delivery Order document are: delivery no, delivery date, reference no, reference date, name and address of buyer, ordered product details, and the transportation system for product transportation.

The customer of SBYM for CPO and PK products are PT. SIP Bulking Tarahan. The transporter of SBYM are:

- PT. Satrindo Jaya Agropalma (for PK and CPO) - PT. Abadi Wijaya Utama (for CPO)

- PT. Lima Adil Makmur (for CPO) E. Training

5.1 The facility shall provide the training for all staff as required to implement the requirements of the Supply Chain Certification Systems.

Records/Evidence:

The facility shall provide the training for all staff as required to implement the requirements of the Supply Chain Certification Systems.

Records/Evidence:

•

SOP Training dan Kompetensi Sumber Daya Manusia (SOP Training and

Human Resources Competency)

Document No.: PT SIP

‐

SBYM/SOP/19,

issued 02/01/2012

•

RSPO – SCCS Training material is available in Identification Matrix Needs

•

Invitation, Attendance List, Socialization Training Material RSPO–SCCS,dated

Sucofindo ICS FRM 14.05 F. Claims

6.1 The facility shall only make claims regarding the use of or support of RSPO certified palm oil that are in compliance with the RSPO Rules for Communication and Claims.

Records/Evidence:

SBYM have 7 Declaration of RSPO SCCS

1. Deklarasi RSPO

_‐

SCCS (RSPO SCCS Declaration)

2. Deklarasi Prosedur RSPO

‐

SCCS Mass Balance (RSPO-SCCS Mass Balance

Procedure)

3. Deklarasi Penilaian RSPO (RSPO Valuation Declaration)

4. Deklarasi Penjualan dan Pengeluaran Produk (Sale and Product Output

Declaration)

5. Deklarasi Penyimpanan dan dokumentasi rekaman (Retention and Record

Documentation Declaration)

6. Deklarasi Nama Produk (Product Name Declaration)

7. Deklarasi Klaim/Pernyataan (Claim Declaration)