Roundtable on Sustainable Palm Oil - TÜV Rheinland...The company follows a replanting cycle of 25 years. Information on the dates of plantings is as per the table below. Table 4:

Roundtable on Sustainable Palm Oil Public Summary Report

Report no.: RA1-82450214006

Re certification assessment against the

RSPO Principles & Criteria Generic Standard 2013 &

RSPO Supply Chain Certification System year 2014

Wilmar International Limited

PT Tania Selatan Plantation – Burnai Timur Mill Head Office :

Lintas Timur Km 100 Desa Purwo Asri Lempuing Sub-district, Ogan Komering Ilir District

South Sumatera Province ndonesia

Date of assessment: March 14 to 18, 2016

Report prepared by:

Naik Monang Lingga (RSPO Lead Auditor under Monitoring)

Dian S Soeminta Lead Auditor

Certification decision by:

Abdul Qohar (Director of TUV Rheinland Indonesia)

Certification Body:

PT TUV Rheinland Indonesia Menara Karya, 10th Floor

Jl. H.R. Rasuna Said Block X-5 Kav.1-2 Jakarta 12950, Indonesia

Tel: +62 21 57944579 Fax: +62 21 57944575

www.tuv.com/id

TABLE OF CONTENTS

1.0 SCOPE OF CERTIFICATION ASSESSMENT 3

1.1 National Interpretation Used 3 1.2 Type of Assessment 3 1.3 Location and Maps 3 1.4 Description of Supply Base 5 1.5 Dates of Plantings and Replanting Cycles 7 1.6 Other Achievements and Certifications Held 8 1.7 Area of Plantation (Total, Planted and Mature) 8 1.8 Organisational Information / Contact Person 9 1.9 Description of Company History, Socioeconomy & Environment 9 1.10 Time Bound Plan for Other Management Units 10 1.11 Compliance to Rules for Partial Certification 11 1.12 Plan for certification of associated smallholders 13 1.13 Approximate Tonnages Certified 13 1.14 Recommendation for Certification 14 1.15 Date of Certificate Issued and Scope of Certificate 14

2.0 ASSESSMENT PROCESS 14

2.1 Certification Body 14 2.2 Qualifications of Lead Assessor and Assessment Team 14 2.3 Assessment Methodology 16 2.4 Stakeholder Consultation and Stakeholders Contacted 17 2.5 Date of Next Surveillance Visit 18

3.0 ASSESSMENT FINDINGS 18

3.1 Summary of Findings 18 3.2 Identified Non-conformances, Corrective Actions Taken and Auditors Conclusions 58 3.3 Noteworthy Positive Components 61 3.4 Issues Raised by Stakeholders and Findings Pertaining to Issues 61 3.5 Acknowledgements of Internal Responsibility and Formal Sign-Off by Client 65

APPENDICES 66

Appendix 1: Details of Certificate 66 Appendix 2: Certification Audit Plan 68 Appendix 3: List of Abbreviations 71 Appendix 4: List of Stakeholders Interviewed and Contacted 72 Appendix 5: Observations and Opportunities for Improvement 73

RSPO Certification Assessment Report

- PT Tania Selatan – Burnei Timur Palm Oil Mill –

South Sumatera indonesia

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QMF: RSPO-007a-13(Rev.0)

1.0 SCOPE OF CERTIFICATION ASSESSMENT

1.1 National Interpretation Used

The operations of the palm oil mill(s) and its supply base of FFB were assessed against RSPO Generic Stand-ard 2013 of the RSPO Principles & Criteria and RSPO Supply Chain Certification year 2014.

1.2 Type of Assessment

The recertification assessment was carried out on 1 of mills (Burnai Timur Palm Oil Mill) and 2 estates under PT Tania Selatan (Burnai Timur Estate and Burnai Barat estate) owned by Wilmar International Tbk.

1.3 Location and Maps PT Tania Selatan location is in Muara Burnei Village, Lempuing Sub-district, Ogan Komering Ilir District, and South Sumatera. This location is 100 km or 4 hours by drive from Palembang City the capital of South Su-matera.

Figure 1 : Location of PT Tania Selatan Estates within Ogan Komering Ilir District of Palembang, Indonesia

(includes location of Burnai Timur estate, Burnai Barat estate and Bambu Kuning estate which is not included in this audit scope as this estate is supplying to another mill belonging to Wilmar)

Location of Burnai Barat estate (nucleus)

Location of Burnai Timur estate (nucleus) and Mill




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Figure 2: Planted area map of Burnai Timur Estate




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Figure 3 : Planted area map of Burnai Barat estate

Table 1: GPS locations for all estates and mills in cluded in certification assessment

1.4 Description of Supply Base

Burnai Timur mill is one of the palm oil mills owned by Wilmar International in South Sumatera. Burnai Timur mill was established in 1993 with a production capacity of 60 tonnes/hours. The company was initially a National In-vestment Company, but changed status to a Multinational Investment Company upon approval from the Indone-sian Capital Investment Coordination Board (‘Badan Koordinasi Penanaman Modal’ - BKPM) in their BKPM de-cision letter no. 696/III/PMDN/1989 dated September 16, 1989 and BKPM decision letter no. 47/II/PMDN/1996 regarding extension of share investment. In year 2015, Burnai Timur Mill is receiving approximately 24.19% of its supplies of Fresh Fruit Bunches (FFB) from 2 company-owned estates (Burnai Timur Estate and Burnai Barat

Name of mill / es-tates

Location GPS locations

Lat. Long Burnai Timur Mill Muara Burnai Village, Lempuing Sub-district, OKI

District, South Sumatera Province, Indonesia 03°37’36.00” 104°52’05.29”

Burnai Timur Estate Muara Burnai Village, Lempuing Sub-district, OKI District, South Sumatera Province, Indonesia

03°37’26.90” 104°51’10.90”

Burnai Barat Estate

Purwo Asri Village, Lempuing Jaya Sub-district, OKI District, South Sumatera Province, Indonesia 03°36’43.60” 104°39’33.90”




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Estate) and the remaining 75.81% from the company-owned (non-certified) estate, sister company and compa-ny’s smallholder schemes and independent outgrowers. The land use rights certificate (Hak Guna Usaha – HGU) which is equivalent to the land title for Burnai Timur estate includes also the area of another estate, which is Bambu Kuning estate whereas the land use right’s Burnai Barat estate has been processed.

The company receives FFB from independent outgrower i.e Sapta Tunggal Mandiri and also receives FFB from 25 independent outgrowers as seen the mill’s supply base table below: Table 2: FFB Supply Information for Burnai Timur mi ll year 2015 & 2016

FFB Contributors FFB supplied year 2015 FFB Suplied year 2016 (projection)

Tonnes % Tonnes %

Company owned estates :

Kebun Burnai Timur 34,178 15.43 18,000 6.85

Kebun Burnai Barat 19,410 8.76 18,000 6.85

Sub Total 53,588 24.19 36,000 13.70

Others Company’s estate (if any)

Kebun Bambu Kuning & BCP

21,789 9.84 - -

Smallholder/Outgrower

Others 97,158 43.88 147,500 56.19

Independen Ougrower

Sapta Tunggal Mandiri (SP 1 -7), KORPRI

48,906 22.09 79,000 30.11

Grand Total 221,441 100.00 262,500 100.00




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Table 3: Certified tonnages claimed, certified tonn ages purchased or sold, total and projected CPO and PK production from Burnei Timur Mill

Note : * due to large replanting program in PT Tania Selatan affect to decrease certified volume for this year both for CPO (11,350 Mt) and PK (2,790 MT) as mentioned on the table3

1.5 Dates of Plantings and Replanting Cycles The company follows a replanting cycle of 25 years. Information on the dates of plantings is as per the table below. Table 4: Age and year of plantings of company estat e supplying to Burnai Timur Mill

Age & Year of Plantings Oil palm planted area at each estate(ha)

Kebun Burnai Timur Kebun Burnai Barat

2016-2012 1,165.00 - 2011-2007 25.10 320.21 2006-2002 350.64 600.46 2001-1997 94.60 - 1996-1992 254.76 - 1991-1987 784.24 - 1986-1992 - -

TOTAL 2,674.34 920.67

*) From table 4 above there is information about age and year of planting from 2012 until 2016. This is not new development area but from replanting activities

Table 5: Planned and actual oil palm replanting act ivities for PT Tania Selatan

Year

Total planned re-planting ar-

ea (ha)

Total planned replanting area for each estate (ha) Actual total area replanted

(ha) Kebun Burnai Timur

Kebun Burnai Barat

2015 473.36 471.08 - 471.08

2016 457.50 - - -

Amount (MT)

CPO PK

Certified tonnages claimed* 7,390.8 1,922.4

Previous certified tonnages claimed 12,680 3,222

Certified tonnages sold 0 0

Certified tonnages purchased 0 0

Actual Production for year 2015 43,430.395 12,965.964

Actual Certified Production for year 2015 24,837.783 7,515.272

Conversion Rate for year 2015 OER: 19.61 KER: 5.86

Projected output for year 2016*** 46,090 11,988

Projected conversion rate for year 2016*** OER: 20.53 KER: 5.34

Projected certified FFB from certified estates 2016

36,000

Projected FFB for year 2016 for all sources 262,500




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2017 292.79 - - -

2018 151.03 - - -

2019 - - -

1.6 Other Achievements and Certifications Held Table 6: Details of other certifications or awards held by PT. Tania Selatan

Name of mill / estate Certification Standard / Award achieved

Certification Body / Awarder

Date Achieved

ISO 25 November 2011 TUV Rheinland 14 August 2014

ISPO 16 January 2014 PT. MAL 15 November 2019

RSPO 15 May 2011 TUV Rheinland 14 May 2016

PROPER 2014-2015 Propernas -

1.7 Area of Plantation (Total, Planted and Mature).

Table 7: Oil Palm Planted Area Summary, FFB Product ion and Average yield/ha for PT. Tania Selatan

Estate Name Total area (ha)

Oil Palm Planted area

(ha)

Mature (Production)

area (ha)

Immature (Non-

production) area (ha)

FFB Production*

(tonnes) Average yield/ ha

Burnai Timur Estate

2,771.19 2,674.34 1,708.93 1,165.00 34,178.00 20.00

Burnai Barat Estate

1,224.89 920.67 920.67 - 19,421.00 21.11

TOTAL 3,996.08 3,595.01 2,629.60 1,165.00 53,599.00 20.38

Table 8: Land use data for PT. Tania Selatan

Estate Name

Total area (ha)

Oil Palm Planted

Area (ha)

HCV/ Poten-

tial HCV

areas* (ha)

Land used for other purposes (ha)

Housing, Road,other ifrastruc-

ture

Nursery Cleared Area

Other Land

Burnai Timur Estate

2,771.19 2,674.34 0.30 56.78 6.00 18.98 14.79

Burnai Barat Estate

1,224.89 920.67 256.71 28.90 - 4.45 14.16

TOTAL 3,996.08 3,595.01 257.01 85.68 6.00 23.43 28.95

Source: Areal statement 2016 HCV area include on company’s productive are




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1.8 Organisational Information / Contact Person Contacts details of the company are as follows:

1.9 Description of Company History, Socio-economy & Environment PT Tania Selatan was originally managed and owned by Tania Group, operating under decree No. 258/Kpts/KB.320/4/90 from the Minister of Agriculture. The decree was issued for project implementation of a PIR-Trans (Perkebunan Inti Rakyat-Transmigration) smallholder oil palm development project in Lempuing and Tanjung Lubuk Subdistrict of Ogan Komering Ilir (OKI) District. In 2002, Wilmar group purchased a portion of Tania group’s area (while Sampoerna Group purchased the remaining area). Wilmar group’s purchase included two land use rights certificates or HGU from the Badan Pertanahan Nasional (BPN) or National Land Agency in the Ogan Komering Ilir district.

Table 9: General Information on Estates under PT Ta nia Selatan

Burnai Barat estate Burnai Timur estate

Location of local gov-ernment admin office

Purwo Asri Village, Lempuing Jaya sub-district, OKI district, South Sumatra prov-ince


Location of plantation administration office

Ulak Kapal village, Tanjung Lubuk sub-district, OKI district, South Sumatra prov-ince


Stakeholders located at north boundary of estate

Tanjung Baru Village Purwo Asri Village

Stakeholders located at east boundary of estate Gunung Batu Village Muara Burnai Village

Stakeholders located at south boundary of estate

Pengarayan Village Mulya Guna Village

Stakeholders located at west boundary of estate Suka Cinta Village Benawa Village

Total Area 1,302.35 ha 2771.19 ha Land Condition Secondary Forest and brush land Secondary Forest and brush land Soil type Ultisol, Inseptisol and Entisol Ultisol and Inseptisol Hydrology Poor – well drained Imperfect-well drained Climate type (according to Köppen climate clas-sification)

B1 classification Type Af dan Am

B1 classification Type Af and Am

Slope (%) 0-12% Predominantly 0-12% and partially 12-24%

Company Name: Wilmar International Limited PT. Tan ia Selatan Plantation- Burnai Timur Mill

RSPO Membership no. 2-0017-05-000-00

Address: Site : Lintas Timur Km 100 Desa Purwo Asri Kecamatan Lempuing Jaya, Kabupaten Ogan Komering Ilir, Provinsi Sumatera Selatan, Indonesia Head Office : Multivision Tower 15rd floor, Jl. Kuningan Mulia Kav 9B, Ja-karta Selatan, Indonesia

Contact Person: Mr. Sinnaya S

Telephone: 0812-711-3343

Email: [email protected]




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1.10 Time Bound Plan for Other Management Units The time frame laid out below is considered to be both challenging and realistic. The company will be using the experience of this recertification assessment to ensure that the other management units conform to the RSPO Principles & Criteria. The audit team is satisfied that the company conforms to the RSPO requirements for partial certification as laid out in Clause 4.2.4 of the RSPO Certification Systems document. The time frame laid out below is considered to be both challenging and realistic.

Name of Holding Location Time bound

plan for certific ation

Status

Indonesia

PT Milano (Pinang Awan) North Sumatra 2009 Certified

PT Mustika Sembuluh I Central Kalimantan 2009 Certified

PT Kencana Sawit Indonesia West Sumatra. 2010 Certified

PT Kerry Sawit Indonesia I Central Kalimantan 2010 Certified

PT Tania Selatan South Sumatra 2010 Certified

PT AMP Plantation West Sumatra 2011 Certified

PT Agro Nusa Investama (Sambas) West Kalimantan 2012 Certified

PT Buluh Cawang Plantations 1 South Sumatra 2012 Certified

PT Bumi Sawit Kencana Central Kalimantan 2012 Certified

PT Gersindo Minang Plantations West Sumatra 2012 Certified

PT Sarana Titian Permata Central Kalimantan 2012 Certified

PT Daya Labuhan Indah-2 North Sumatra 2013 Certified

PT Mustika Sembuluh 2 Central Kalimantan 2014 Certified

PT Mentaya Sawit Mas Central Kalimantan 2014 Certified

PT Kerry Sawit Indonesia 2 Central Kalimantan 2014 Certified

PT Agro Palindo Sakti 1 South Sumatra 2014 Full Assessment on 14/11/2014

PT Musi Banyuasin Indah South Sumatra 2014 Full Assessment on 28/11/2014

PT Murini Sam Sam Riau 2014 Full Assessment on 02/11/2015

PT Sinarsiak Dianpermai Riau 2014 Gap Assesment on 19/09/2014

PT Karunia Kencana Permaisejati Central Kalimantan 2016 Full Assessment on 09/04/2015

PT Rimba Harapan Sakti Central Kalimantan 2016 Full Assessment on 27/03/2015

PT. Bumi Pratama Khatulistiwa West Kalimantan 2016

PT Agro Nusa Investama (Landak) West Kalimantan 2016

PT Agro Palindo Sakti 2 West Kalimantan 2016

PT Buluh Cawang Plantation West Kalimantan 2015

PT Agrindo Indah Persada 2 Bangko - Jambi 2016

PT. Putra Indotropical West Kalimantan 2016

PT. Pratama Prosentindo West Kalimantan 2016

PT. Indoresin Putra Mandiri West Kalimantan 2016 PT Asiatic Persada Jambi 2013 Not classified, com-

pany sold PT Citra Riau Sarana 1 Riau 2014 Not classified, shares

are being divested




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PT Citra Riau Sarana (ML) 3 Riau 2014 Not classified, shares are being divested

PT Citra Riau Sarana 2 Riau 2014 Not classified, shares are being divested

Malaysia

Sapi Palm Oil Mill Labuk, Sandakan Sabah

Certified

Reka Halus Palm Oil Mill Labuk, Sandakan Sabah

Certified

Sabahmas Palm Oil Mill Lahad Datu, Sabah Certified Saremas 1 Palm Oil Mill Miri, Sarawak Certified Saremas 2 Palm Oil Mill Miri, Sarawak Certified Terusan Palm Oil Mill Labuk, Sandakan

Sabah Certified

Ribubonus Palm Oil Mill Telupid, Sandakan, Sabah

Certified

Sri Kamusan Palm Oil Mill Sugut, Sandakan Sabah Certified

Table 11: New Development Area under Wilmar Interna tional

Name of Holding Location Total area NPP Status according to

RSPO NPP procedure

PT Agro Indah Persada Merangin. Jambi 1,200 ha Approved

PT Agro Nusa Investama Sambas

Sambas, West Ka-limantan

1,024 ha Approved

Biase Plantations (Ibiae Estate)

Calabar, Nigeria 5,594 ha Approved

Biase Plantations (Calaro Extension)

Calabar, Nigeria 3,066 ha Not submitted (Pending

HCV/HCS study

Eiyup Industry (Oban Es-tate)

Calabar, Nigeria 2,986 ha Not submitted (Pending HCV/HCS study

Biase Plantations (Biase estate)

Calabar, Nigeria 8,029 ha Overlapping boundaries

The audit team is satisfied that the company conforms to the RSPO requirements for partial certification as laid out in Clause 4.2.4 of the RSPO Certification Systems document.

1.11 Compliance to Rules for Partial Certification Compliance of the uncertified management units of Wilmar Plantation Limited against the rules for partial certifi-cation according to RSPO Certification System clause 4.2.4 was assessed through document check for all com-pany’s self assessment report for uncertified unit. A summary of findings is as stated below.

.




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Partial Certification Requirements Audit Findings

(a) The parent organization or one of its majori-ties owned and / or managed subsidiaries is a member of RSPO.

Wilmar International Indonesia is RSPO member with membership number 2-0017-05-000-00.

(b-d) A challenging time-bound plan for certify-ing all its relevant entities is submitted to the Certification Body (CB) during the first certifica-tion audit. The time-bound plan should contain a list of subsidiaries, estates and mills.

Any revision to the time-bound plan or to the circumstances of the company shall cause the plan to be reviewed. for whether it is still appro-priate, such that changes to the time-bound plan are permitted only where the organisation can demonstrate that they are justified

Refer to the time bound plan under Section 1.10 above

(e) No replacement of primary forest or any ar-ea identified as containing High Conservation Values (HCVs) or required to maintain or en-hance HCVs in accordance with RSPO criterion 7.3. Any new plantings since January 1st 2010 must comply with the RSPO New Plantings Procedure

There are some newly developed plantation areas un-der Wilmar International such as in Jambi province, West Kalimantan province Indonesia and Nigeria as explained on the table 11 above. Some areas have undergone the New Planting Procedure (NPP) and been approved while some areas are still undergoing the NPP, as shown in Table 11 above.

(f) Land conflicts, if any, are being resolved through a mutually agreed process, e.g. RSPO Grievance procedure or Dispute Settlement Fa-cility, in accordance with RSPO criteria 6.4, 7.5 and 7.6.

PT Asiatic Persada, which was previously a subsidiary of Wilmar had a significant land conflict issue but has been sold to other plantation company and is now no longer a subsidiary of Wilmar Plantation.

Wilmar International carried out the New Planting Pro-cedure for BIASE Plantation Limited (Ibiae estate) in Nigeria with an announcement made on the RSPO website on 9 November 2012. During this NPP pro-cess, a complaint was submitted by the Rainforest Resource & Development Centre (RRDC) on behalf of the Ibiae Land Lord Community. The complaint cov-ered infringements to several aspects of Principle 1 and Principle 2 of the RSPO P&C. The case was tak-en up and investigated by the RSPO Complaints Pan-el, with decision made for RSPO to a lawyer well ac-quainted with Nigerian laws to review and give an au-thoritative opinion on whether the company had com-plied with the legal requirements of Nigeria. The legal opinion was received by the RSPO on 27 August 2014, and based on this opinion, the RSPO confirmed that BIASE Plantations was in compliance with legal requirements and closed the case. However, the result was not accepted by RRDC as well as the NGO, Friends of the Earth and the issue remains ongoing with no resolution. As the company has complied with requirements to attempt to resolve the dispute through the RSPO grievance procedure, this is noted by the TUV Rheinland audit team as an observation and pro-gress of the case will be monitored.

Further details on this case are available here: http://www.rspo.org/members/complaints/status-of-complaints/view/26 .

There is also on ongoing land dispute at PT Gersindo




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Minang Plantation (GMP), West Sumatra under Wil-mar, which has been ongoing since year 1997 with the village of Jaorang Rantau. This company has been RSPO certified by another certification body who is monitoring the status of the dispute with the RSPO.

(g) Labour disputes, if any, are being resolved through a mutually agreed process, in accord-ance with RSPO criterion 6.3.

A previously ongoing labour conflict in PT Tania Se-latan regarding employee bonus has been solved. There are no other identified labour disputes ongoing at other subsidiary companies of Wilmar.

(h) Legal non-compliance, if any, are being re-solved in accordance with the legal require-ments, with reference to RSPO criteria 2.1 and 2.2.

Some of Wilmar’s other management units have not complied with certain legal requirements, for example in PT Sarana Titian Permai, PT Kerry Sawit Indonesia, PT Mustika Sembuluh estate under another Wilmar In-ternational management unit, there is an issue with the land area stated in the land use right certificate (HGU). However, the company is taking action by inviting the National Land Agency (BPN) to remeasure the land and resolve the issue. The process is still ongoing.

In addition, there were non-compliances raised in June 2015 by the Environmental Department of Agam against PT AMP Plantation, another subsidiary of Wilmar. The non-compliances raised were that:

• The company continued to carry out land application after their license for land application had expired on 14 March 2014

• The company was carrying out POME treatment us-ing an adsorption system which had not been stud-ied or approved as per the company’s environmental management document

• There was no follow up by the company’s manage-ment on the results of the evaluation by the Agam district on PT AMP mill’s wastewater treatment facili-ty in 2013

• Sample analysis results of wastewater discharged from the mill was found to have exceeded the legal limits for BOD and COD.

At time of this audit, the company was still making ef-forts to close these legal non-compliances.

1.12 Plan for certification of associated smallhold ers

Burnai Timur mill has 8 (eight) scheme smallholders and 25 (twenty-five independent outgrowers that supply FFB to their mill. All scheme smallholders which were previously included in the mill audit scope are now re-moved from the audit scope and now as an independently and supported by RSPO.

1.13 Approximate Tonnages Certified

The approximate tonnages certified based production in year 2015 for company owned estates only are as fol-lows:

Crude Palm Oil (CPO) : 10,508.60 tonnes Palm Kernel (PK) : 3,140.25 tonnes While the projection for FFB production for year 2016 is 224,500 tonnes from companies’ owned estate.




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1.14 Recommendation for Certification PT Tania Selatan (Burnei Timur Palm Oil Mill its supply based estates has established and maintains an effec-tive system to ensure compliance with the RSPO principles and criteria. The audit team has confirmed through the audit process that the company’s practices complies with, adequately maintains and implements the re-quirements of RSPO Principles and Criteria Generic Standard. PT TUV Rheinland Indonesia recommends that Burnei Timur Palm Oil Mill and its supply bases PT is approved to renewal its certificate as a producer of RSPO Certified Sustainable Palm Oil.

1.15 Date of Certificate Issued and Scope of Certif icate

The scope of the certificate covers production of palm oil from Burnei Timur Palm Oil Mill and its supply base, which includes Burnei Timur Estate and Burnei Barat estate. The date of certificate issued is [Date of certifi-cate to be included upon certification decision and issuance of certificate]. Further details of the certificate are as per Appendix 1.

2.0 ASSESSMENT PROCESS

2.1 Certification Body PT TUV Rheinland Indonesia is member of Group TÜV Rheinland Group, a global leader in independent test-ing and assessment services. The TÜV Rheinland Group was established in 1872 with offices located in over 490 locations in 62 countries on all five continents. PT TUV Rheinland Indonesia offers certification for a wide range of management systems according to established international standards including ISO 9001, ISO 14001, OHSAS 18001, SA 8000, as well as CDM Validations and Verifications. PT TUV Rheinland Indonesia’s office is located in Jakarta, Indonesia.

2.2 Qualifications of Lead Assessor and Assessment Team

Name Position Qualifications / Experience

Dian S Soeminta Lead Auditor

Education: Bachelors Degree in Forestry - Bogor Agriculture Insti-tute. Indonesia, (1990 to 1995).

Trainings attended : ISO 9001:2000 lead assessor course 1996 - Neville Clark; ISO 14001 lead assessor course - PE International; OSHAS: 2007 training, Sustainable Forest Management (SFM) - Forest Stewardship Council (FSC) system training; Chain of Cus-tody training for FSC System. RSPO lead Auditor training year 2010 by Pro Forest and Wild Asia. SCCS training by David Ogg Consulting. ISPO Lead Auditor training Working experience: Professional forester since 1995 to 2000. Lead Auditor for Forest Stewardship Council (FSC), Sustainable Forest Certification (SFC) and Chain of Custody (COC) Certifica-tion. Lead auditor for Environmental Management System (EMS) and Quality Management System (QMS) audits. Conducted sus-tainable forest management certification audits on FSC and Indo-nesian Ecolabel Institute (Lembaga Ecolabel Indonesia - LEI) standards for 20 companies, 50 COC FSC/LEI audits, and EMS and QMS audits at more than hundred companies for TUV Rhein-land Indonesia. Instrumental in the preparation of TUV Rheinland Indonesia for Sustainable Forest Management Certification System and TUV Rheinland Malaysia for RSPO Certification. Member of Task Force for Indonesian National Interpretation (Guidance on scheme smallholder RSPO certification). Developed TUV Rhein-




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land RSPO acceditation process and report template.

Naik Monang Parlindungan-Lingga

Lead Auditor (Under Moni-toring)

Education: Bachelor of Forestry, Gadjah Mada University. Training attended: ISPO Auditor, Quality Management System (QMS) Auditor/Lead Auditor (ISO 9001:2008) by IRCA, Environmen-tal Management Systems Auditor/Lead Auditor Conversion Training by IRCA (ISO 14001-2004), Lead Auditor RSPO Training, and HCVA Training Working experience: Field Assistant PT Sapta Karya Damai (2008-2013), Auditor in PT Sucofindo (2013-2015), and Auditor in PT TUV Rheinland Indonesia (2015-present).

Wahyu Auditor

Education : • Master Degree of Management of Manufacturing Engineering,

Faculty of Engineering, University of Pancasila • Degree of Mechanical Engineering, University of Indonesia

Training attended: RSPO Lead Auditor Course, Pro-Forest & Daemeter, Calculation of Green House Gas at Palm Oil Plantation, Komisi ISPO, ISPO Lead Auditor Course, Komisi ISPO, Verified Legal Compliance & Re-duced Impact Logging Auditor Training, by Tropical Forest Founda-tion, SVLK Auditor Training, Ministry of Forestry, CoC Auditor – LEI, ISO 9001:2008, IRCA Approved Course, ISO 14001:2004, IRCA Approved Course Working experience : PT Carsurin, as QHSE Coordinator (2006 -2009), PT Mutu Hijau In-donesia, Jakarta as Technical Manager (2010-May 2014) and Audi-tor PT TUV Rheinland Indonesia (May 2014-present)

Doni Mardoni Auditor

Education: Master in Rural Sociology, Graduate School of Bogor Agricultural University completed in 2005. Trainings Attended: GIS Training, Auditor Training of Indonesian Sustainable Palm Oil (ISPO), Training of Participatory Mapping, Training of Document Preparation HCV and SIA, Auditor Training of Sustainable Produc-tion Forest Management (SFM), Training and Up-Grading of SFM, Training of Mentoring technique for the Rural Farmers, Conflict Resolution Training and Journalism Training. Work Experience : Frequently conducted certification audits of RSPO and ISPO for Palm plantation, the certification audit of SFM (Sustainable Pro-duction Forest Management) for HPH and HTI, worked as a con-sultant for the National Development Planning Agency, Ministry of Environment and Forestry, Indonesian People Bank (BRI), Ministry of Rural Development (KPDT) and the Ministry of Public Works, Di-rector General of Cipta Karya, JICA and UN-HABITAT and UNDP, HCVF document drafting team for the company of HTI, HPH and constituent team for documents of HCV / SIA for oil palm planta-tions. Since March 2016 till now, work at PT. TUV Rheinland Indo-nesia.




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2.3 Assessment Methodology The re certification assessment was conducted between March 15 to 18, 2016 as per the assessment pro-gram below. The assessment was carried out in accordance with PT TUV Rheinland Indonesia’s RSPO audit procedure as well as the RSPO Certification Systems document. During assessment, the qualified TUV Rhein-land assessors used the RSPO standard as endorsed for the country in which the assessment took place and recorded their findings. Due to the location and proximity of the estates, combined with common management systems, it was possible to carry out both field and document assessments of all estates and the mill within the time frame without com-promising the integrity of the assessment in anyway. All 2 estates and 1 mill were visited and the assessment team carried out field and document assessments of compliance to all the RSPO principles and criteria. Common systems were identified and specific evidence was recorded for individual estates. Interviews were conducted at all estates and the mill. The company proposed the correction and corrective action for all identified non conformities raised to the certi-fication body 30 days after the closing meeting. Verification of closure of major non-conformances was con-ducted 2 months after the closing meeting of the main assessment and implementation of corrective actions for minor non-conformities will be verified during the next suriveillance audit. The certification assessment agenda is as explained below. Recertification Assessment Agenda Date Location Agenda

14.03.2016 Burnai Timur Palm Oil Mill

Opening meeting • Introduction and background of estate and mill • Audit team introduction and audit plan finalization • Document Checking

15.03.2016 Burnai Barat Estate Site Visit:

• Interviews with Sprayers for Burnai Barat Estate Block 025

• Interview with contracted FFB loaders • Interviews with harvesters and loose fruit pickers Block

19 • EFB Application area • Chemical store

Burnai Barat Estate office: Document Review Legal Requirements (OSH and Environ-ment), OSH, Training, SOP’s of Legal requirements register and implementation, Field operations (spraying, harvesting, manuring), fertilizer application records, chemical application records, chemical stock inventory, worker interviews , visit of chemical stores, workshops, HIRARC, OSH Committee and safety records, accident records,training and PPE issuance, waste storage also hazardous waste inventories and mani-fest.

16.03. 2016 Stakeholder consultation Stakeholder consultation meeting • Presentation on TUV Rheinland and RSPO • Introduction to purpose of the stakeholder consulta-

tion • Feedback and comments on from stakeholders.

Burnei Timur mill Mill site visit

• Mill compound • Loading ramp • Security post • Lubricant store • Effluent treatment ponds




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• Interviews with mill workers from boiler and clarification stations

Document Review: OHS, Environmental, Issues related to Legal compliance, Occu-pational Safety and Health implementation, training , AMDAL, UPL/UKL, RKL/RPL Aspect Impact Analysis, verification of pre-vious audit findings On-site visit: Plant Tour. Interviews: Head of Mill, staff operation, kerani (foreman) and Mill Worker ( operators)

17.03.2016 Burnei Timur estate Site Visit: • Interviews with Sprayers for Burnai Timur Estate on

Block 116 Division I • Interviews with harvesters and loose fruit pickers on

Block 29D Division 2 • EFB Application area on Block 117 Division 2 • Chemical store • Boundary stone no. 26 Blok 24, Boundary stone

no. 23 Blok 25, Boundary stone no. 21 Blok 31D • Land Application • Checking HCV Area

Burnai Timur Estate office: Document Review Legal Requirements (OSH and Environ-ment), OSH, Training, SOP’s of Legal requirements register and implementation, Field operations (spraying, harvesting, manur-ing), fertilizer application records, chemical application records, chemical stock inventory, worker interviews , visit of chemical stores, workshops, HIRARC, OSH Committee and safety rec-ords, accident records,training and PPE issuance, waste storage also hazardous waste inventories and manifest.

18.03.2016 Closing meeting End of audit

2.4 Stakeholder Consultation and Stakeholders Conta cted The stakeholder consultation involved both external and internal stakeholders. External stakeholders were noti-fied to make comments on the certification assessment by placing an invitation to comment on the RSPO web-site. Stakeholders included those immediately linked with the operation of the company such employees, out-growers, the local government, NGO’s, trade and labour unions and local communities. Stakeholder consultation took place in the form of meetings and interviews. Meetings with stakeholders were held to seek their views on the performance of the company with respect to the sustainability practices outlined in the RSPO Principles & Criteria, and to comment on aspects where improvements could be made. Meetings with local communities were held at their respective premises within and near the company’s area. A stake-holder consultation meeting was also held on Dynasty Hotel Kayu Agung District on March 16, 2016. Letters in-viting individual stakeholders to the stakeholder consultation meeting were prepared and sent to the individual stakeholders, while electronic mail and telephone calls were made to arrange the meetings. In all the interviews and meeting, the objectives of the RSPO and the purpose of the assessment was clarified at the outset followed by an evaluation of the relationship between the stakeholders and the company before discussion proceeded to obtain the stakeholders feedback on the company’s compliance to different aspects of the RSPO Principles & Criteria. Although several stakeholders were not familiar with RSPO but they agreed with its objective and expressed their willingness to collaborate in the promotion of sustainable palm oil in South Sumatera province. In all interviews and meeting, the assessment team did not restrict discussion of both the positive and negative aspects of operations conducted by PT Tania Selatan estates and mill. The stakeholder consultation meeting held with stakeholders during the audit was extensive and productive, with an attendance of more than 20 of attendees]. This was followed by site inspections, including visits to the local communities, interviews with land claimants and contractors, and inspections of worker amenities and in-




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frastructure. All stakeholder issues raised were recorded and forwarded to the management for their written re-ponse, and this is summarized in Section 3.4.The list of stakeholders that attended the stakeholder consultation meeting and stakeholders interviewed during the assessment is included as Appendix 4.

2.5 Date of Next Surveillance Visit The next surveillance visit is planned on March 2017

3.0 ASSESSMENT FINDINGS

3.1 Summary of Findings: RSPO Principle and Criteria During the Re certification assessment, total 7 nonconformities were raised, 3 nonconformities were assigned against Major Compliance indicators while 4 nonconformities were assigned against Minor Compliance Indica-tors. The 8 observations or opportunities for improvement were identified. Further explanation of the non-conformities raised and corrective actions taken by the company are provided in Section 3.2. The observations & opportunities for improvement are listed in Appendix 5. The following is a summary of findings made for the criteria listed in the RSPO Principles & Criteria Generic Standard 2013.

Criterion 1.1: Oil palm 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 decis ion making.

Findings: PT Tania Selatan has SOP for request of information, as stated on SOP NO. PRO –BNM-001 rev. 04 re-vised on October 01, 2014. The SOP explain about mechanism for request of information verbally and non verbal. The SOP stated that all request information will be responded within 7 days. The Company has a list of stakeholders that are listed in the document FROM-Gent-033 revision 05 effec-tive date January 4, 2016. In the stakeholder list is divided into several categories of stakeholders such as provincial level agencies, office / district-level agencies, the police, the military, government districts, the village administration, cooperative, universities, NGOs, contractors / suppliers etc. The Company has pro-cedures for updating and revision of the list of stakeholders with numbers Pro-BNM-014 revision 1 dated effective October 1, 2014. In that procedure regulated that the update conducted no later than every 6 months. In the latest list of stakeholders there are changes in: (1) Changes head of Tanjung Baru village Mr. David became Mr. Abu Bakar Sidik, (2) Changes head of Sari Mukti Village Mr. Ansori became Mr. Homsi.

The Company has announcement to all stakeholders related to the transparency of corporate documents with the letter number 2421.02 / TS.HRR / EXT / IV / 2015 dated April 20, 2015. The information that can be accessed by stakeholders such as: company profile, EIA documents, company policies, permit of HGU and other related permits, area of estate and mill operational, program reports CSR / CD, operational pro-cedures estate and mill, organizational structure, reports of HCV and Management plan HCV, report and SIA Management plan, plan of health and safety, plan and assessment related to social impact, identifica-tion of environmental aspects and impacts, documents complaints, continuous improvement plan and public summary of the certification assessment. The type of information mentioned above can be ac-cessed by government agencies, NGOs, police, head of village and contractors.

The Company has procedures procedure for acceptance and completion of external information with the document number Pro-BNM-001 revision 04 effective date of March 1, 2007 revision dated October 1, 2014. In the procedure regulated about the procedures to obtaining the desired information. The officer responsible to update the list of stakeholders is Bina Mitra (BNM). In the procedure contained information about the officer responsible for the receipt of information ie the Community Development Officer (CDO). In the procedure regulated that companies give answers in writing no later than three weeks from receipt




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of the complaint / information.

The Company (Burnai Timur Estate) has a logbook incoming and outgoing letter of external and internal. Company has been response to incoming letter in accordance with the schedule that regulated in the pro-cedure are:

• Internal complaints from harvesting employees that receipt on October 2, 2015 about housing and the company responded with a repair that was completed on October 22, 2015.

• Companies receiving the application requests about heavy equipment from the village of Sinar Harapan Mulia with the letter number 22 / KD-SHM / VII / 2015 dated July 24, 2015, and has re-sponded with a written letter with the number of letters 240/TS-DM / KBT / VIII / 2015 dated 3 Au-gust 2015 where in a response letter that the request will be realized in September 2015. The company is realizing the request on 22-23 September 2015.

The company also conducts regular reporting to the related agencies, such as:

• Plantation Business Activity Reports 2nd semester 2015 with the number of letters 01 / TS-BM / Ext / I / 2016 dated January 11, 2016. The report was submitted to the Plantation Agencies of Ogan Komering Ilir District

• P2K3 Reports 4th quarter of 2015 were submitted to the Labor and Transmigration Agencies of Ogan Komering Ilir District

Compliance status: Full Compliance

Criterion 1.2: Management documents are publicly av ailable, except where this is prevented by commercial confidentiality or where disclosure of i nformation would result in negative environ-mental or social outcomes.

Findings:

The Company has announcement to all stakeholders related to the transparency of corporate documents with the number of letter 2421.02 / TS.HRR / EXT / IV / 2015 dated April 20, 2015. The information that can be accessed by stakeholders such as: company profile, EIA documents, company policies, permit of HGU and other related permits, area of estate and mill operational, program reports CSR / CD, operation-al procedures estate and mill, organizational structure, reports of HCV and HCV management plan, report and SIA management plan, plan of health and safety, plan and assessment related to social impact, iden-tification of environmental aspects and impacts, documents complaints, continuous improvement plan and public summary of the certification assessment. Overall these documents found in the office


Criterion 1.3.

Findings:

The company has a company policy about code of conduct on behalf of the company Wilmar Group Indo-nesia with the document number 044 / DIR-KP / XII / 2015 valid dated December 15, 2015 but have not been socialized to all levels of employees and third parties associated with the operations of PT Tania Tania. It was raised as Nonconformities (NCR No. 2016-01 of 07 ).

The company policy include information about:

• The commitment and compliance with the implementation of corporate governance

• Prohibition against bribery, corruption and abuse of position

• Compliance with the laws and regulations




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The policy has been outlined in the Indonesian language so it can be understood all parties

Compliance status : Non Compliance

NCR No.2016-01 of 07 (Indicator 1.3.1 as escalation to Major non-conformity)

The Company has a company policy about code of conduct on behalf of the company Wilmar Group In-donesia with the document number 044 / DIR-KP / XII / 2015 valid dated December 15, 2015 but have not been socialized to all levels of employees and third parties associated with the operations of PT Tania Tania.

Criterion 2.1: There is compliance with all applica ble local, national and ratified international laws and regulations.

Findings:

The Company has a procedure identification and evaluation aspects of the laws and regulations with the document number PRO-BM-010 revision 02 effective date of October 15, 2008, the date of the revised October 1, 2014, prepared by Bina Mitra Officer, inspected by the Bina Mitra Manager and approved by General Manager. In the procedure that responsible for identification and evaluation of laws and legisla-tion is:

• For plantation is Binamitra Manager supported by other departments in the company's organization

• For occupational safety and health and the environment is EHS and supported by other depart-ments in the company's organization

• For the labor is Human Resources Manager is supported by other departments within the compa-ny's organization

In the procedure are also regulated that the identification and evaluation of the laws and regulations car-ried out at least 1 times a year or if there are changes to the legislation. There are a list of laws and regu-lations for environment, labor, health and safety and plantations. In the list of the regulation, there is list of rules of international, national and provincial government regulations. In the list of laws and regulations are available a list of document distribution to all levels of management of the company. In the procedure contained sources of the identification and evaluation of changes in laws and regulations can be obtained through sources such as: books laws or regulations, community organization, general information media such as radio, TV, newspapers, internet, email, seminar and conference and related agencies.

Some related documents were reviewed, i.e.:

• At Burnai Barat Estate, a Generator Motor Diesel checked at Housing was found with valid permit No. 560/50/D.Naker-Trans/BW/MD/2012, date November 29, 2012

• Burnai Barat Estate, the result of emission test of Genset, sample No. 660/405/SPPC-Udara/XII/2015, sample was taken at December 16, 2015; evidenced that all test parameters has ful-fil national regulation, i.e.: Regulation of Environmental Ministry No. 13 year 1995; sample NO2 test results is 190 mg/Nm3 (threshold value max 1.000); SO2 test result is 146 mg/Nm3 (threshold value max 800); Chlorine (Cl2) test result is 0,30 mg/Nm3 (threshold value max: 10); H2S test result is 0,01 mg/Nm3 (threshold values max 35)

• At Burnai Barat Estate, has reported implementation of RKL-RPL for Semester II, 2015. There is evi-dence that the report has sent to Regent of OKI (on March 11, 2016); BLH OKI District (March 11, 2016); South Sumatera Governor (March 11, 2016); BLH of South Sumatera Province (March 11, 2016) and Ministry of Environmental of RI.

• At Burnai Barat Estate: First Aider has obtained appropriate training that conducted by authority




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agency, i.e.: Labour & Transmigration Agency Government of OKI District at December 13, 2012. The holders of first aider certificate are:

1. Dendi Kuniawan, Certificate No. 560/08/Disnaker-Tran/BW/2012.

2. Lukman Hakim, Certificate No. 560/10/Disnaker-Tran/BW/2012

• At Mill Tania Selatan: First Aider has obtained appropriate training that conducted by authority agen-cy, i.e.: Labour & Transmigration Agency Government of OKI District at December 13, 2012. The holders of first aider certificate are:

1. Aswadi, Certificate No. 560/17/Disnaker-Tran/BW/2012.

2. Nanang Aswadi, Certificate No. 560/15/Disnaker-Tran/BW/2012

3. Nanang Sofyan, Certificate No. 560/16/Disnaker-Tran/BW/2012

• At Burnai Timur: First Aider has obtained appropriate training that conducted by authority agency, i.e.: Labour & Transmigration Agency Goverment of OKI District at December 13, 2012. The holders of first aider certificate are Sukarmin, Certificate No. 560/09/Disnaker-Tran/BW/2012. There is De-cree Letter No. 075/KBT/SKII/2013, dated February 01, 2013, concerning of First Aider Officer at Burnai Timur Estate.

• License for storage of hazardous wastes dated 18 April 2013 and valid for 3 years, stating maximum storage time of 90 days and also stating no storage of hazardous wastes at other locations other than the specified location.


Criterion 2.2: The right to use the land can be dem onstrated, and is not legitimately contested by local communities with demonstrable rights.

Findings: Burnai Timur estate and Bambu Kuning estate has land used right title (‘Hak Guna Usaha’ or HGU) based on decree of the Minister of State for Agrarian Affairs / Head of National Land Agency No. 21/HGU/BPN/95 valid until December 31, 2029 for total area of 4,205.68 Ha (Burnai Timur estate: 2,404.74 Ha and Bambu Kuning estate: 1,800.94 Ha), land map No. 01/1992 and land use right title certif-icate No. 01/Muara Burnai dated on October 18, 1995 amount of 2,404.74 Ha (for Burnai Timur estate). There is an additional area in Burnai Timur estate amounting to 366.56 Ha for which there are two cultiva-tion right title (Hak Guna Usaha) issued in accordance with decree of National Land Agency regional office in South Sumatera Province, which are:

• HGU No. 05/HGU/BPN-16/2011 dated on March 4, 2011 for total area are 191.81 Ha • HGU No. 04/HGU/BPN-16/2011 dated on March 4, 2011 for total areas are 174.75 Ha

According to information stated on Company’s area statement month February 2016, total planted area and others in Burnai Timur estate are 277.19 ha. However the auditor sight from overlaid map between planted area and HGU they are some planted area outside HGU area e.g. on block 131; 032,028,027, 021, 120,110 and 002. There is no information about total planted area outside HGU location and compa-ny action for this condition. The status of both areas, as stated in the Forestry Agency of South Sumatera Province letter No. 522.593/947-II/Hut dated on February 25, 2011, is considered as land for other uses (‘Areal Penggunaan Lain’). The land use right title certificate for these two areas has been in-process where PT Tania Selatan has submitted letter (no. 97/TS-BM/Ext/VI/2011 dated on June, 6, 2011) to the National Land Agency of Ogan Komering Ilir Regency. The company also has a plantation business registration letter (‘Surat Izin Usaha Perusahaan’ or SPUP)




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obtained from the Ministry of Forestry and Plantation No. 760/Menhutbun-VII/2000 dated on June 29, 2011 for total area of 4,205.68ha located at Lempuing District, Ogan Komering Ilir Regency, South Sumatera Province with processing capacity permit of 60 tonnes/hour. However the location permit does not include permit for additional area in Burnai Timur area of 366.31 ha even no Plantation Business Permit (‘Izin Usaha Perkebunan’ or IUP) as the existing Plantation Business Registration Letter (SPUP) covers only the area of 4,205.68 ha for Burnai Timur Estate and Bambu Kuning Estate. PT Tania Selatan has SR3 document to prove that additional area has land title document. Burnai Barat estate is ongoing to obtain land use right title (Hak Guna Usaha), the following description are the process of Burnai Barat estate to apply HGU certificate i.e.: • Burnai Barat has received their location permit (extension time) i.e Decree Head of Ogan Komering Ilir

District No. 63/KEP/III/2012 dated on February 06, 2012

• The company has submitted letter (No. 238/TS-BM/Ext/X/2012 dated on October 24, 2012) to Head of Regional Office of the National Land Agency in South Sumatera Province about request of cadastral measurement amount of 1,300 Ha

• The Head of Regional Office of the National Land Agency in South Sumatera Province then sent a let-ter to the company regarding the notification of deficiencies requirement for request of cadastral measurement (surveying and mapping) amount of 1,300 Ha

• The company then submitted letter (No. 08/TS-BM/Ext/I/2013 dated on January 25, 2013) and addi-tional document to Head of Regional Office of the National Land Agency in South Sumatera Province about submission of the document on deficiencies requirement for request of cadastral measurement (surveying and mapping) amount of 1,300 Ha.

• The company has sent a letter to the Head Office of the National Land Agency of South Sumatra, con-cerning the cultivation right title with a letter number: 080 / TS-BM / Ext / III / 2014 dated March 24, 2014.

• Regional office of the National Land Agency in South Sumatera team has carried out cadastral meas-urement (measurement and mapping of boundary land) dated on May 29 to June 06, 2013 with result of measurement is 1,009.89 Ha (based on statement letter of completion of work cadastral measure-ment). These areas are stated in the map of land no. 17-04.07-2013 in Tanjung Baru and Ulak Kapal Village, Tanjung Lubuk Sub District, Ogan Komering Ilir Regency (scale 1: 15,000) where total areas consist of section I : 51.12 Ha, section II : 22.22 Ha, section III : 66.31 Ha, section IV : 9.79 Ha, section V : 22.20 Ha, section VI : 5.16 Ha, section VII : 68.93 Ha, section VIII : 15.98 Ha, section IX : 620.30 Ha, section X : 1.91 Ha, section XI : 11.03 Ha, section XII : 9.29 Ha, section XIII : 96.38 Ha, and sec-tion XIV : 9.27 Ha.

• Process to date is the letter of application for the cultivation right title of PT. Tania Selatan for the land area of 1009.89 ha of National Land Agency (‘Badan Pertanahan Nasional’ or BPN) Regional Office of South Sumatra Province to the National Land Agency of the Republic of Indonesia with the letter num-ber: 1456 / 16-300-9 / V02014 dated May 28, 2014. The actual condition is the area statement of Bur-nei Barat estate is 1.224.89, that is mean the current condition has been 215 ha more than total area as stated on cadastral map.

The company has procedures for Identification and Maintenance of the Boundary HGU by document num-ber Pro-BNM-014 revision effective date April 20, 2011 and revision date October 1, 2014 prepared by ‘Bina Mitra’ (Development Partner) Officer, inspected by the Head of Unit and approved by the General Manager, which is included in SOP for implementation and maintenance of BPN boundary stones con-ducted every 4 months. It is accompanied by boundary markers maintenance schedule in 2014 and 2015 as outlined in the maintenance schedule form boundary markers with numbers document FRM GEN 075, revision 02, effective date October 1, 2011 and the maintenance of evidence include:

1. Minutes of maintenance of boundary markers Burnai Timur on April 21, 2014 include with a list of boundary markers and photographs maintenance results.

2. Minutes of maintenance of boundary markers Burnai Timur on August 13, 2014 include with a list of boundary markers and photographs maintenance results.

3. Minutes of maintenance of boundary markers Burnai Timur on December 26, 2014 include with a




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list of boundary markers and photographs maintenance results.

4. Minutes of maintenance of boundary markers Burnai Timur on April 27, 2015 include with a list of boundary markers and photographs maintenance results.

Burnai Barat Estate and Burnai Timur Estate have land use right title (HGU) boundary map and coordi-nates. During a visit to a field in Burnai Barat Estate, some boundary stone are well visible such as coor-dinate measurement on BPN boundary TS 392 & TS 68 Block 014 was checked and confirmed, which is consistent with the company’s documents.

Based on the data of area statement in February 2016 and the result of interview with the Head Village of Burnai Timur and officials of Purwo Asri village, note that no cases of land disputes in the company area. Compensation or the entire land acquisition has been completed in 2006. Until now there is no demand or the company's land claims by communities around the estate.

The company has SOP for Technical Manual of Land Acquisition (No. Document: SOP 29 / BM / (0) 0409) dated 13 April 2009. The procedure is drafted and designated as a technical guide which is used to en-sure that the decision, or action steps in the process of land acquisition for the benefit of the palm oil in-dustry is done properly and correctly in accordance with the provisions and the applicable legislation, the principles and criteria of the RSPO, HCVF, and EFIC particularly for land which is related to commu-nal/customary land.

The Company has a policy of no deforestation, no land clearing in peat lands and not exploiting their fel-low human beings and the local community. It was made on December 5, 2013. In the document was ex-plained that Wilmar remain to committed clearly and seriously not to do violence action and will do our best in all respects in order to avoid using force, threats or act violently Compliance status: Full Compliance

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

Findings:

There are two community land inside company’s HGU area in block 113, however no record of negotiation process or agreement that the community allowed to use those land as farming area. This is raised as non conformity (NCR No. 2016-02 of 07 ).

The company has the SOP of Delivering Preliminary Information and Consent without force (Free Prior and Informed Consent / FPIC) (No. Document: SOP 46 / PR / (0) / 0709) applies on July 2009. Within the SOP described FPIC stages, those are:

• Identification of customary lands.

• Involving the community institutions.

• Delivering information.

• Ensure that the consent was given voluntarily.

• Guarantee that the approval was given before operations.

• Ensure that there is an agreement.

• Resolve conflicts.

• Negotiation,

• Finalization of the written agreement.

In interviews with the village head of Burnai Timur and village officials of Purwo Asri, it was explained that there are no indigenous land or customary rights in the area of the company. Since the beginning of land acquisition for the construction of the estate, there is no customary land or customary rights in the area of the company. Legality of land in the community is SKT document issued by the village and sub-district head, SHM (Ownership Certificate), inherited land and the deed of land sale and purchase.




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There is map of land enclave in the area of PT Tania Selatan, Burnei Timur estate. The map has inform 2 rubber plantaton belong to community inside blok 113, that has been excluded from company’s HGU. Ac-cording to information from Bina Mitra departement, a part of enclaved area has been compensated by Tania Selatan. All relevant information as been available in Bahasa and kept by both parties. There is no conflict between Tania Selatan and communities surronding area that is why, Tania Selatan is not require to ptovide evidence to show that communities are represented through institutions or repre-sentatives of their own choosing,


NCR No.2016-02 of 07 (Major non-conformity)

There are two community land inside company’s HGU area in block 113, however no record of negotiation process or agreement that the community allowed to use those land as farming area.

Criterion 3.1: There is an implemented management p lan that aims to achieve long-term eco-nomic and financial viability.

Findings: The company has a long-term plan for the years 2015-2020 both Burnai Timur Estate, Burnai Barat Estate where the long-term plan is discussed related to the operational activities of the company both estate and mill, supporting activities, monitoring the environment, CSR activities including the budget for each of the planned activities relating to financial planning company between total revenues with operating costs and profits of the company. Burnai Timur palm oil mill also has a long-term plan of the year 2015-2020. In the long-term plan was dis-cussed about the plan acceptance fresh fruit bunches from the outgrower, the amount of fresh fruit bunches to be processed, the yield of palm oil and kernel yield and the production of palm oil and palm kernel, financial planning companies among total operating costs and profits of the company. Burnai Barat Estate no replanting plan for the oldest plants in 2005 while for the Burnai Timur Estate have replanting program for 5 years from 2015 to 2020. The following data on replanting plan:

• 2015: 471.68 ha • 2016: 457.50 ha • 2017: 292.79 ha • 2018: 151.03 ha • 2019: 230.60 ha • 2020: - ha

The company has been implementing replanting in 2014 covering an area of 362.49 ha, while for 2015 from January to December 2015 was carried out as 471 ha in Division I Burnai Timur Estate Compliance status: Full Compliance.

Criterion 4.1: Operating procedures are appropriate ly documented and consistently implement-ed and monitored.

Findings: The company has a revised version of Wilmar’s Standard Operating Procedure (SOP) for Oil Palm dated 2011, as well as company specific SOPs for all mill and estate operations. Both estates and mill have company SOPs as well as a general SOP for Wilmar Group companies, named Standard Operating Pro-cedure for Oil Palm 2011 (revised from 2007). The company was stated for each procedure in the work station. During visit to spraying circle path on block 025 year planting 2006, there is found the procedure for circle path spraying. The company has master list of all procedure. The company has document control procedure with docu-




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ment number Pro-Gen-001 revision 05, effective date March 1, 2007, revision dated October 1, 2014. In the procedure regulated about document control about making and changing document, socializatation, distribution and document storage and the withdrawal and destruction of documents.

The company has internal audit procedure with document number Pro-Gen-003 revision 03; effective dat-ed March 1, 2007, revision dated October 1, 2014. The company was conducted internal audit on 17-18 October 2015. The company has conducted internal audits periodically but have not completed the form required to conduct internal audits, such as internal audit check sheet (FRM-Gen-004 revision 1 effective date April 20,2011), the report form non-conformity (FRM-GEN-005 revision 04, the effective date April 20, 2011), form the audit report (FRM-Gen-012 revision 01 effective date April 20, 2011) as set out in the in-ternal audit procedures (Pro-Gen-003 revision 03 effective date March 1, 2007, the date of the revised Oc-tober 1, 2014). This is raised as non conformity (NCR No. 2016-03 of 07 ). The company has letter decree number: 2611.01 / TS-HRR/I/2016 dated January 2, 2016 about determi-nation of an internal auditor’s team of PT. Tania Selatan. Internal auditors team assigned i.e Uus Sudar-madi, SH (Lead Auditor), Daniel KB Simamora, David Iskandar Sidik and Dhora Elfira. The company was conducted training of RSPO internal auditor on August 4, 2015.

The company has nonconformity control procedure (Pro-Gen-005 revision 05, effective dated March 1, 2007, revision dated February 23, 2016. In the procedure regulated mechanism to control nonconformity. Both of mill and estate was conducted internal audit. The company (mill) was conducted internal audit on 17-18 October 2015. There are 17 nonconformities and it was conducted correction action. The company was conducted internal audit on 16 December 2015. There are 37 nonconformities and it was conducted correction action. The company has records of corrective action for nonconformity issued and keep well.

The company has FFB acceptance procedure with the document number Pro-Mill-001 revision 06 effec-tive date March 1, 2007, date of revision February 23, 2016. In the procedures have been regulated about FFB acceptance from the estate-certified and the estate that not get certified. The company has list of FFB supplier that stated in list of stakeholders with document number FRM-GEN-033 revision 05, effec-tive date January 4, 2016. According to records, there is 15 third party suppliers of FFB which supply FFB to mill The mill has records of incoming FFB, there are 4 type sources i.e.Company’s owned estate included on certificate scope (Burnai Barat and Burnai Timur); Company’s owned estate not included on certificate scope Tania but included on other certification scope(Bambu Kuning; Suka Mulya & Dabuk Rejo); Outsid-ers. The mill has SOPs for FFB purchased SOP-MIL-044; incoming FFB PRO-MIL-001 and FFB tracea-bility for CPO and PK product PRO-MILL-015 revised Febrary 23, 2016. All incoming FFB from outsider has been recorded on “Rekap Pembelian (Ramp PKS)”. There are sources category i.e. Ring 1, 2, 3 and K. Daily recapitulation of incoming FFB was recorded e.g. dated February 29, 2016 No. 29/RP/PKS-BT/02/2016. The company has conducted internal audits periodically but have not completed the form required to con-duct internal audits, such as internal audit check sheet (FRM-Gen-004 revision 1 effective date April 20,2011), the report form non-conformity (FRM-GEN-005 revision 04, the effective date April 20, 2011), form the audit report (FRM-Gen-012 revision 01 effective date April 20, 2011) as set out in the internal au-dit procedures (Pro-Gen-003 revision 03 effective date March 1, 2007, the date of the revised October 1, 2014 ) The report explained company has outgrowers i.e. FFB trader/agent such as CV Berkat Anugrah Raya Utama; PT SPS QQ PT SAP/Ali Susanto etc, the agent supplied by several farmers, however the mill has not mechanism to ensure the source of FFB from which farmer including legality of FFB supplied as com-mited that mill only receive legal FFB. There is no clear information stated on FFB transport document the source of farmer or legal origin as required by agrement and SOP. 001/TBS/VIII/2009 rev.02. There is a list of FFB trader (agent) including information about its suppliers e.g. FFB agent with contract No. 009/TS-PLBG/TBS/I/2015. The agent has 8 suppliers including information about village; GIS; Forest or non Forest area, watershed, year of planting, potency of total production etc. The mill has mechanism for FFB supplier evaluation that regularly conducted every once a year. Result of evaluation was recorded on FRM-PRC-005, currently supplier evaluation were conducted only for non cer-tified outgrowers, e.g. for CV Berkat Anugrah Raya Agung. However evaluation of supplier focused only for FFB quality not for legal source issues as stated on purchasing agrement signed by both parties.




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Compliance status : Non compliance

NCR No.2016-03 of 07 (Minor non-conformity)

The company has conducted internal audits periodically but have not completed the form required to con-duct internal audits, such as internal audit check sheet (FRM-Gen-004 revision 1 effective date April 20,2011), the report form non-conformity (FRM-GEN-005 revision 04, the effective date April 20, 2011), form the audit report (FRM-Gen-012 revision 01 effective date April 20, 2011) as set out in the internal au-dit procedures (Pro-Gen-003 revision 03 effective date March 1, 2007, the date of the revised October 1, 2014 )

Criterion 4.2: Practices maintain soil fertility at , or where possible improve soil fertility to, a le vel that ensures optimal and sustained yield.

Findings:

The company has fertilizer procedure i.e fertilizer application (SOP-EST-013 revision 03, effective date March 1, 2007 and revision date April 15, 2013) and empty fruit bunch (EFB) application procedure (SOP-EST-013 revision 03, effective date March 1, 2007 and revision date April 15, 2013)

The company has record of fertilizing realization from January until December 2015. Based on record of fertilizer realization that thew programme fertilizer activity conducted properly to the recommendation of leaf analysis result. The company has record of used fertilizer per tonne FFB for each fertilizer.

The company has soil and leaf analysis procedure (SOP-RND-013 revision 01 effective dated Juli 1, 2013). In the procedure stated that leaf analysis conducted once a year and soil analysis conducted 5-10 years. The company has records of leaf analysis that it was conducted on 2015 by EMU Laboratory to get fertilizer recommendation for year 2016. The result of analysis describe the content of N, P, K, Mg, Ca, BA, Cu, Zn. Leaf samples were analyzed by 99 samples and 10 samples of leaf rachis. For the soil analy-sis done by EMU Laboratory and the results were received on January 20, 2016. Soil samples were ana-lyzed as much as 8 samples. Records of results analysis of leaves and soil has been used as fertilizer recommendations and fertilizer program in 2016.

The company has record of EFB application. For 2015, the company has been realization of EFB aplica-tion for covering an area of 23.37 ha with the number of empty bunch as much as 1.188 ton. The program included the application doses per year of planting for each block. Compliance status: Full Compliance

Criterion 4.3: Practices minimise and control erosi on and degradation of soils.

Findings:

The Company has a semi-detailed soil map with a scale of 1: 50,000. Based on the soil map, there are several classes of land, i.e:

Burnai Barat Estate No Soil Class Soil class Abr Mgt Class Ha %

1 Binjai Bji C 592.65 18.50

2 Gajah Mati Gmi G 178.63 5.60

3 Gondang Gdg E 144.31 4.50

4 Terap Trp A 1,808.20 56.50

5 No data 476.21 14.90

Total 3,200.00 100.00




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Burnai Timur Estate No Soil Class Soil class Abr Mgt Class Ha %

1 Bukit Tuku Btu C 62.89 2.27

2 Cherang Hangus Chs C 217.68 7.85

3 Kulai Kli A 69.41 2.50

4 Terap Trp A 659.96 23.82

5 Terap/red Trp/r A 1,761.25 63.56

Total 2,771.19 100.00

The company (Burnai Barat Estate) has no management strategies for planting on sloping areas. Based on the maps of topography, PT. Tania Selatan is a flat area covering an area of 1,208.12 ha undulating flat, covering an area of 35.98 ha undulating and hilly area of 0.09 ha and Burnai Timur Estate is a flat ar-ea covering an area of 2,735.03 ha flat undulating and undulating area of 36.16 ha.

The company has record of planning and realization road maintenance year 2015 and 2016. The road maintenance programme was stated in budget 2015 and 2016. The company has no peat areas and marginal areas. Compliance status: Full Compliance

Criterion 4.4: Practices maintain the quality and a vailability of surface and ground water.

Findings:

In order to maintain the quality and availability of surface and ground water, the company has establish a standard operating procedure regarding the riparian and riverbanks in document number SOP-GEN-019, revision 03, effective date March 1, 2007 with revision date October 1, 2014 in which the procedure speci-fies the riparian distance where neither chemical treatment with spraying or fertilizer application shall be carried out. The buffer zones where spraying and fertilizer application cannot be done are mounted with stakes as buffer zone markers and palms are also marked with yellow paint to indicate oil palm trees where chemical application is restricted.

The evidence that the organization has implemented water management plan are:

• Result of water sources identification, as stated at Map Ref No. HD 5343, title: Persebaran Sungai di Kebun Burnai Timur, dated December 04, 2015. The water sources identified are Rangkui River, Pematang Balak River, and Kapas River. River’s area at each estates are:

1. Burnai Timur Estate: River 18.39 ha, swamp 0.31 ha

2. Burnai Barat Estate: River 0 ha; Swamp 262.80 ha

• In order to protect/maintain water sources, the organization was defined and implement a pro-gram as contained in FRM-GEN-036 (Program Upaya Pengelolaan dan Pemantauan HCV 4.1 dan 5) year of 2015. The purpose of program is to maintain water availability for long time. And the target is to maintain area with have function as water provider and blood control for down-stream community. Some action was taken to achieve the purposes and target such as:

1. Checking of HCV 4.1 signboard was done on January and July 2015

2. Checking of prohibition’s signboard (hunting, electric current, poison, spraying application, and fertilizer) was done on January and July.

3. Montoring to ensure there is no activities that can caused river’s pollution was done every




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month.

4. Reforestation (planting tree) on river’s riparian was done on April and September 2015.

5. Official report of installation of Prohibition’s Signboard at Rengkui river’s riparian (HCV areal) dated January 27, 2016, was signed by Ir Zulham Azli

6. Official report of planting tree (such as: Bamboo and Tamarind), at buffer zone of Rengkui river, dated January 28, 2016. Report was prepared by HCV Officer (Sukamin) and acknowledge by Ir. Zulham Azli.

7. Official report of re-painting of HCV’s Signboard that located at buffer zone Pematang Ba-lak’s River, dated January 21, 2016. BA Pembersihan Signboard HCV, dated January 05, 2016 yang berlokasi di Sungai Pematang Bala dan Sungai Rengkui.

8. Official report of agreement of joint maintenance of HCV area between the company and estate owner (H. Saili) nearby HCV area (Rangkui River) at Burnai Timur Estate, dated January 05, 2016,

9. Official report of agreement of joint maintenance of HCV area between the company and estate owner (Widarto) nearby HCV area (water pond) at Burnai Timur Estate, dated Jan-uary 05, 2016.

10. Official report of HCV’s socialization to Burnai Timur Estate employee, dated February 17, 2016, consist of operator and heavy equipments, totally attended by 22 persons. The so-cialization materials such as prohibition to poison of fishes and prohibition to applied ferti-lizer and chemist spraying at all river’s riparian.

11. Official report of installation of HCV’s boundary pole at river riparian, dated January 05, 2016, installation of boundary pole, prohibition of chemist spraying and fertilizer applica-tion at rivers of Rangkui and Pematang Balak.

At Burnai Barat Estate: in order to avoid of surface and ground water contamination, the organization has applied oil trap at workshop, fuel tank (equipped with ban-wall), and power house.

The organization has established a procedure for dealing with mill effluent, i.e.: Procedure of Manage-ment of Effluent (Pengelolaan Limbah Cair), Document No. PRO-MILL-007, Rev. 04, Revision Date Octo-ber 01, 2014. There is evidence that the organization has mill effluent treatment processes. The pro-cesses for checking and monitoring water discharge quality, especially BOD has defined, and there is ev-idence that the process has been implemented effectively. The organization has hold a license for land application Base on Decree of OKI Regent No. 416/KEP/BLH/2014, dated April 25, 2014, concerning Li-cense of Pemanfaatan Air LImbah Industri Minyak Kelapa Sawit Pada Tanah di Perkebunan PT Tania Se-latan Kabupaten OKI. This license valid for 2 (two) years since issued.

BOD analysis results for the final discharge pond 9 at the mill were sighted. Analysis is done on monthly basis by the Environmental Laboratory of Environmental Department of South Sumatera. Sample monthly BOD analysis results for past 6 months show no exceed of the BOD limit of 5000 mg/l for the final dis-charge pond used for land application. 6 examples listed below as follows:

1) Analysis certificate for sample received July 10, 2015 shows BOD inlet pond 9 is 5,328 mg/l, and BOD outlet pond 9 is 3,518 mg/l.

2) Analysis certificate for sample received August 07, 2015 shows BOD inlet pond 9 is 5,040 mg/l, and BOD outlet pond 9 is 4,900 mg/l

3) Analysis certificate for sample received September 15, 2015 shows BOD inlet pond 9 is 5,100 mg/l, and BOD outlet pond 9 is 3,120 mg/l

4) Analysis certificate for sample received October 07, 2015 shows BOD inlet pond 9 is 5,090 mg/l, and BOD outlet pond 9 is 2,390 mg/l

5) Analysis certificate for sample received November 03, 2015 shows BOD inlet pond 9 is 5,060 mg/l, and BOD outlet pond 9 is 2,510 mg/l

6) Analysis certificate for sample received December 23, 2015 shows BOD inlet pond 9 is 5,120 mg/l, and BOD outlet pond 9 is 1,775 mg/l

PT Tania Selatan have license for utilizing surface water based on Decree of Kepala Dinas Per-




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tambangan dan Energi Ogan Kemiring Ilir District No.540/58/DPE/2012, concerning Utilizing of Surface Water (Pemanfaatan Air Permukaan). The company has maintained records of mil water use per tonne of FFB.

The data of water use per tonne FFB for year 2015 is presented as table below:

Processing Boiler Domestic Total

January 10.810 17.210 7.008 10.202 34.420 3,18

February 9.631 9.472 6.364 6.504 22.340 2,32

March 11.536 4.595 8.360 8.215 21.170 1,84

April 14.712 9.821 11.536 15.243 36.600 2,49

May 24.021 8.360 12.010 8.215 28.585 1,19

June 23.897 15.912 19.107 22.919 57.938 2,42

July 17.511 19.628 14.524 15.839 49.991 2,85

August 18.186 23.848 15.766 19.251 58.865 3,24

September 24.702 6.423 18.156 18.334 42.913 1,74

October 27.889 15.765 22.433 18334 56.532 2,03

Nopember 26.232 14.644 21.196 13.850 49.690 1,89

December 18.656 2.205 13.766 22.986 38.957 2,09

Total 227.783 147.883 170.226 179.892 498.001 2,19

Water Usage (M3)FFB Processed (ton)

MonthWater Use per

Ton of FFB (M3/Ton FFB)


Criterion 4.5: Pests, diseases, weeds and invasive introduced species are effectively managed using appropriate Integrated Pest Management (IPM) techniques.

Findings:

The company implements Integrated Pest Managament in with their procedure PRO-RND-022 on Inte-grated Pest Management last revised on 2 December 2015 and SOP-RND-005 regarding Monitoring of Crop Pests last revised 1 October 2014. Detailed work instruction for IPM implementation including how to conduct the census, threshold levels of attacks and chemical to be applied is as stated in Wilmar’s Ag-riculture Manual and Standard Operating Procedure for Oil Palm 2011: Pests of Oil Palm Practices. In ac-cordance with the procedure, census of leaf pests and rats is carried out once every 4 months with priority on biological management using barn owls for rats and caterpillar viruses or planting of beneficial plants to attract natural predators of bagworms and nettle caterpillars. Burnai Barat estate and Burnai Timur es-tate has records of census done in February, May, September and November 2015 for rats and leaves pest. Based on the records for pest of rats are below the threshold that is <2% and for the pest leaves be-low the threshold that is <5 larvae / midrib. So companies do not exercise control.

The company has integrated pest management plan of in 2016 that stated in form of program and actual integrated Pest Management matrix with document number FRM-HRD-024 revision 0 January 1, 2013. In the program, there are plans rat control and pest leaves.

Burnai Barat estate and Burnai Timur etstate has a program to carry out IPM training on Management of Leaf Pests for year 2016 stated in FRM-HRD-024 revision 0 dated January 1, 2013. For Burnai Barat Es-tate, the training program will be conducted in February and August 2016. For February 2016, the compa-ny have been done conducted training on February 3, 2016 equipped with minutes of training and at-tendant list participants. Burnai Timur Estate have been planned to conduct training in August 2016.

Compliance status : Full Compliance




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Criterion 4.6: Agrochemicals are used in a way that does not endanger health or the environ-ment. There is no prophylactic use of pesticides, e xcept in specific situations identified in na-tional Best Practice guidelines. Where agrochemical s are used that are categorised as World Health Organisation Type 1A or 1B, or are listed by the Stockholm or Rotterdam Conventions, growers are actively seeking to identify alternativ es, and this is documented.

Findings:

The Company has recommendation to use pesticides on the number 521/704 / Kompukpes / 2015 dated May 22, 2015 issued by the Agriculture Department of Ogan Komering Ilir. The recommendation is valid until May 22, 2018.

The Company has procedures for use pesticide, among others: • The procedures for circle weeding with document number SOP-EST-005, revision 04 effective

date March 1, 2007, and revision dated October 1, 2014. • The procedures for selective weeding with document number SOP-EST-006, revision 04 effective

date March 1, 2007, revision dated October 1, 2014. • The procedures for blanket spray with document number SOP-EST-007, revision 03 effective date

March 1, 2007, revision dated October 1, 2014. • The procedures for spot spray with document number SOP-EST-008, revision 03 effective date

March 1, 2007, revision dated October 1, 2014. • The procedures for wipping with document number SOP-EST-009, revision 03 effective date

March 1, 2007, revision dated October 1, 2014. • The procedures for path spray with document number SOP-EST-010, revision 03 effective date

March 1, 2007, revision dated October 1, 2014. • The procedures for circle spray with document number SOP-EST-011, revision 03 effective date

March 1, 2007, revision dated October 1, 2014.

The company has a pesticide application programs listed in the budget of 2016. Records of the use of pesticides. As

an example:

• In January 2016, Company conducted application Glisat 480 SL (the active ingredient glyphosate isopropyl amine) with a total land area of 22.81 hectares is applied, the amount of pesticides used 22.8 liters, rotation I

• In February 2016, Company conducted application Glisat 480 SL (the active ingredient glyphosate isopropyl amine) with a total land area of 61.33 hectares is applied, the amount of pesticides used 62.1 liters, rotation I

In the recordings listed active ingredients used, LD50, the land area is applied, the amount of active in-gredients used per hectare and rotation applications.

The Company (Burnai Barat Estate) has integrated pest management plan in 2016 are listed in form of matrix Actual Program and Integrated Pest Management with document number FRM-HRD-024 revision 0 January 1, 2013. In the program, there are plans rodent pest and pest leaves control. The Company (Bur-nai Timur Estate) has integrated pest management plan in 2016 listed in the document number FRM-GEN-036 revision 2 dated October 1, 2014. In the program, there are plans of rodent pest control, pest leaves, orycthes, and Ganoderma sp.

The company has been monitoring Tyto alba in January 2016 where there are 37 cages with the number of owls is 22 tails and 26 eggs.The company has conducted census leaf pest and rodent pest In February 2016. Base on the census result, there is no significant attack so there is not use chemically.

The company has a complete listing of WHO class 1A, class 1B and and Stockholm or Rotterdam Con-ventions pesticide. Based on the record of pesticides used, the company not use paraquate for the opera-tion. The company used pesticides such as Glisat 480 SL (isoproilamina glifosat), Tiara (metil metsulfu-ron), starene (fluroksipir) and Rhodiamine (2,4 D-amina).The company also has a recommendation of pesticides used from Agricultural Agency (521/704/Kompukpes/V/2015, valid dated until May 22, 2018). The organization has established a procedure regarding mechanism for handling and storage of all pesti-




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cides. The mechanism was defined in the procedures, i.e:

• SOP Material Receiving, SOP No. PRO-STR-001, Rev. 3, dated October 01, 2014.

• SOP Material Storage, SOP No. PRO-STR-002, Rev. 3, dated October 01, 2014.

The pesticides storage was available both of Burnai Barat estate and Burnai Timur estate. Based on the sites visit, it was found that the chemical store was kept securely locked when not used, properly ventilated, PPE requirement was posted, first aid box available and containment also availabe. A water tank with tap for emergencies was available nearby. The pesticides was arranged appropriately and taken account OHS factors. The personal who in charge has well known with MSDS and pesticides handling procedures.

The company has training plan year 2016 for spraying. In year 2016 planning on February and September 2016. Evidence of training i.e minutes of spraying training which conducted on February 10, 2016. Minutes of training fulfil with documentation and attendance list and training materials. Training was con-ducted with Indonesian language and can understand by employee. According interview with spraying worker on Block 025 that the worker was understood for spraying application and have been training. The company was conducted pesticide application properly with product label. During field visit on Block 025, there is MSDS on spraying location. During interview, the worker used the properly PPE i.e mask, glass-es, gloves and apron. PPE that used was properly with result of risk assessment. PPE used is provided by the company and if damaged will be replaced. The company is not implementing aerially mechansim for pesticide application. The organization has establish some SOP regarding proper disposal of waste material, such as:

• Handling of Domestic Waste (Housing and Office) (Penanganan Limbah Perumahan dan Per-kantoran) Doc. No: SOP-GEN-006, Rev.03, effective dated October 01, 2014)

• Handling of Hazardous Waste (Penanganan Limbah Bahan Berbahaya dan Beracun. Doc. No. SOP-GEN-008, Rev.03, dated October 01, 2014)

• Handling of Plastic Waste (Penanganan Limbah Plastik) Doc. No. SOP-GEN-007, Rev.03, dated October 01, 2014)

There is sufficient evidence that the organization has implemented proper ways for waste disposal, such as:

• Letter of Hazardous Waste Delivery, dated 02/03/2016, Hazardous Waste Delivery from Burnai Timur Estate to Burnai Timur Palm Oil, Oil used (oli bekas) 302 liter, fuel filter 9 pcs, and Oil filter 10 pcs; collected period 01-02-2016 until 29-02-2016

• Sheet of Hazardous Waste, dated 6-02-2016, to 10 Feb, 22 February, end 29 Feb 2016

The company has an agreement with parties who have licence to transport, collect, handling and disposal of hazardous waste at July 10, 2015 and valid until July 10, 2016. There is evidence that all hazardous waste was keep in the Temporary Store of Hazardous Waste Store for temporary before hand over to third party who has license for transport, handling and disposal hazardous waste, sample:

• Consignment letter of hazardous waste dated 02/03/2016, from Burnai Timur Estate to Temporry Store of Hazardous Waste at Burnai Timur Mill, i.e.: Used oil 302 litre, Solar filter 9 pcs, and Oil fil-ter 10 pcs; Collecting periods 01-02-2016 to 29-02-2016

• Hazardous Waste, dated 06 -02-2016, 10-02-2016, 22-02-2016 and 29-02-2016

Furthermore, there is evidence that the hazardous waste has taken by licensed third party at March 12, 2016, i.e.:

• Letter No. 025/DAS-PP/SS/III/2015, dated March 12, 2016, concerning hazardous waste withdraw-al

• Hazardous Waste Manifest No. 0002153, dated March 12, 2016 � contaminated good (Majun) 13 kg

• Hazardous Waste Manifest No. 0002142, dated March 12, 2016 � used oil 2,100 liter

The company has list of pesticide operators. Based on data on March 2016, there is 9 pesticide operators. The company has result of medical checkup for pesticide operator that was conducted on May 2015. It




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conducted by UPTD Hyperkes and Keselamatan Kerja of Employee Agency South Sumatra Province. There is 30 workers for spraying and manuring operator and the result is normal and for mechanic and generator operator there is 2 workers indicated mild disturbance of a total 6 people were examined. The company has records of medical and treatment for employees who experience disturbance. Company checked back in September 2015 and the results are fit for work.

The company has spot spray procedure (SOP-EST-008 revision 03, the effective date of March 1, 2007, revision dated October 1, 2014). In the procedure stated the working prohibition for pregnancy and lacta-tion women. The company conducted periodic monitoring every two months to check urine for pregnancy for the employees who conducted in Puskesbun Burnai Barat. Based on medical checkup result, in 2015 there is no pregnant women based on result of routine checkup


Criterion 4.7: An occupational health and safety pl an is documented, effectively communicated and implemented.

Findings :

The organization has established Health and Safety Policy in appropriate languages that are in Bahasa Indonesia and English, and the policy was signed by Country Head at May 22, 2015. The policy was cov-er:

• Commitment to provide health and safe working environmental for all employees;

• Commitment to provide appropriate protection against any accidents;

• Mitigation and reduce of risks to worker health and safety at all workplace activities.

There is evidence that the policy has communicated to all workers, and there is evidence that operators who interviewed aware and understand the policy. The ways of OH&S policy’s communicate are:

• Attached copy of policy at strategic location, such as office’s mill wall,

• Through routine monthly safety meeting

• Socialization of OHSK3, for example has conducted at January 06, 2016

• To hold an interview to some employees

At Burnai Barat Estate,

There is a health and safety plan in place that documented in:

1. FRM-HRD-024 namely Program Pelatihan Pengembangan SDM, the form prepared by Kerani DC and Acknowledge by Pimpinan Unit; and

2. FRM-GEN-016, namely Program Kerja Organisasi P2K3, the form prepared by Secretary of P2K3 and Chairman of P2K3.

The plan in the Program Pelatihan Pengembangan SDM - 2016, Form No. FRM-HRD-024 has included target for improving for OH&S, i.e.: K3 Umum/General OHS (January 06, 2016 attended by 30 workers), P3K (First Aider), Simulasi Kebakaran/Fire Simulation, Teknik Investigasi Kecelakaan Kerja/Accident In-vestigation Technique, Izin Kerja Berbahaya/Dangerous Work Permit, Penggunaan Bahan Kimia/Chemical Usage, Limbah B3/Hazardous Waste, and etc.

The Program Pelatihan Pengembangan SDM - 2015, Form No. FRM-HRD-024 has included target for im-




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proving for OH&S. There is evidence that some of training was done, such as:

• General OH&S/K3 Umum, on January 2015

• Investigation of Accident, on April 2015

• Work Permit/Izin kerja berbahaya, on May 2015

• Hazardous Waste/Limbah B3, on April 2015

The company has been conducted risk assessments for all operations where health and safety is an is-sue both of for Mill and Estate activities. The risk assessment was covering all the organization’s pro-cesses and activities. And there is evidence, when accidents had occurred, were these included in the risk assessments with action plans to prevent further recurrence.

The organization has established a procedure concerning hazard identification, risk assessment and risk control that is procedure No. PRO-GEN-008, Rev.04, Effective Date March 01, 2007, Revision Dated Oc-tober 01, 2014, namely “Identifikasi Aspek Lingkungan / Bahaya K3 dan Dampak.

The organization has conducted risk assessment for all operation where health and safety an issue and was cover all processes and activities within Mill operation including office and transport activities. The result of risk assessment was documented on Document No. FRM-GEN-014, namely “Identifikasi dan Evaluasi Aspek/Dampak Lingkungan dan Bahaya/Resiko K3”.

In order to address the identified OHS issue as results of risk assessment, the organization was defined documented procedure, such as:

• Procedure No. PRO-MILL-011, rev. 01, dated 01 October 2014, namely Prosedur Tanggap Da-rurat (procedure of Emergency Response)

• Procedure No. PRO-GEN-009, rev. 04, dated 01 October 2014, namely Prosedur Pelaporan dan Penyelidikan Kecelakaan dan Pencemaran Lingkungan (procedure of reporting and investigation of accident and environmental pollution).

• Procdure No PRO-GEN-012, rev. 04, dated 01 October 2014, namely Prosedur Inspeksi Ling-kungan dan K3 (procedure of environmental and OHS inspection)

• Procedure No. PRO-GEN-021, rev. 00, dated 08 October 2014, namely Prosedur Pengelolaan Limbah B3 (procedure of hazardous waste management

There is evidence that all processes equipments have been inspected by authority body periodically. The last inspection was conducted at March 07, 2016, for example:

1. Hoisting Crane Nomor 566/D.TKKS/014/D.TKKS/AA/2003;

2. Hoisting Crane Nomor 566/015/D.TKKS/AA/2003;

3. Hoisting Crane Nomor 566/012/D.TKKS/AA/2003;

The results are all of above Hoisting Crane are still comply with all OHS requirements and can operate accordingly.

At Burnai Barat:

There is evidence the organization was identify needed PPE for each activities such as: Safety shoes, Of-fice shoes, Rubber Booth Shoes, Overall long sleeve, safety helmet, ear protection, Eye protection, Spray apron, Dust Mask, Welding apron, Welding Mask, Rubber Glove, Chemical Mask, Cotton Glove, and Body Harness. The data was recorded on Laporan Kelengkapan Alat Perlindungan Diri (APD) Kebun.




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During observed and interview with sprayer at block 25, the sprayers has equipped by appropriate PPE i.e.: Rubber Boot Shoes, Eye Protection, Spray Apron, Dust Mask, Chemical Mask, and Rubber Hand Glove.

Base on observation and interview with the Harvester found that the persons has equipped by appropriate PPE, i.e.: Rubber Boot Shoes, Helmet and Leather Glove.

Based on interview with sprayers and harvester, found that all PPE has provided by the organization and replaced if any damages freely. There is evidence distribution of PPE, such as Daftar Penerimaan APD (FRM-GEN-071) dated Feb 26, Feb 18, 25, 19 Feb, 16, 15 and Berita Acara date February 26, 2016, Substitution of PPE (i.e.: boot 6 pair, masker, glove).

Burnai Timur Mill:

The company was identified the responsible person/persons to implement OS&H by make Panitia Pem-bina Kesehatan dan Keselamatan Kerja (P2K3). The formation of P2K3 is to compliance regulation of Minister of Manpower and Transmigration No. PER.04/MEN/1987. At Burnai Timur Mill, the P2K3 was approved by Head of Manpower and Transmigration OKI Regent, according to Decree No. 182/D.Naker-Trans/BW/2015, dated November 30, 2015, concerning Legalization of P2K3 PT Tania Selatan PKS Bur-nai Timur.

Burnai Barat Estate:

The company was identified the responsible person/persons to implement OS&H by make Panitia Pem-bina Kesehatan dan Keselamatan Kerja (P2K3). The P2K3 was approved by Head of Manpower and Transmigration OKI Regent, according to Decree No. 25/D.Naker-Trans/BW/2014, dated December 15, 2014,

There are meetings between the responsible persons and workers conducted on required by law; minutes of meeting recording attendees and issues discussed are available and maintained. The meeting are concerns of all parties about health, safety and welfare.

The organization has define procedure dealing for accident, that are:

• Prosedur Pelaporan dan Penyelidikan Kecelakaan dan Pencemaran Lingkungan (PRO-GEN-014, Rev.02, dated October 01, 2014, effective dated March 01, 2007)

• SOP Panduan Pengisian Formulir Investigasi (SOP-GEN-003, Rev.02, dated October 01, 2014, effective date March 01, 2007)

There is evidence that any accident has been investigated and action taken to prevent recurrence, for ex-ample:

• Burnai Barat Estate: Zero Accident (2016)

• PKS – Tania Selatan / Burnai Timur: Kronologis Kecelakaan Kerja (FRM-GEN-065), dated Octo-ber 25, 2015, victim: Alex Simon, position is Helper Capstand, dated of starting work December 11, 2011, the victim’s ring finger and middle finger was jammed in Lorry.

• Accident official report signed at November 20, 2015; An accident was occurred November 20, 2015, at Block 115; victim is Muhamad Udin, (his hand was injury by stem and midrib of palm. Form No. FRM-GEN-010, Rev.03, Rev Date 01 Oct 2014, dated 20 – 11- 2015. An action was taken to prevent recurrence that is socialization of working best practice during working.

There is evidence that the company has First Aider Officers as required by the national regulation (Permenaker No. 15, year 2008). The certificates of training and first aider kits (i.e.: office, spraying fore-man, and harvesting foreman) are available. The contents of first aider were complying with the applicable




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regulation. There is sufficient evidence that all worker are provided with medical care, included accident insurance by the company. Some of document were reviewed, e.g.:

• Membership Card of Medical Care/Insurance Program at Burnai Timur

• Payment receipt (Bukti pembayaran BPJS Ketenagakerjaan), dated February 13, 2016 amount of Rp266.874.120,-) for January 2016 payment. Total of worker was provided medical care are 1,351 persons;

• Randomly interview with some workers at Burnai Barat has been demonstrated that the organization was provided medical care (including accident insurance). The worker also has shown their owned membership of BPJS, for example:

1. Muhamad Udin, BPJS Membership No: 1602 0207 0387 0004

2. Daud Iskandar, BPJS Membership No. 00018350929181

There is evidence, for accidents that have occurred, that the affected workers received appropriate medi-cal treatment, and was able to claim and receive compensation under the insurance policy, sample:

• The accident was occurred at October 24, 2015; the victim’s name Alex Simon, Helper Capstand, Status KHT, working started on December 11, 2011. The victim has reported to BPJS, and support-ed by Accident Report Phase I, Form KK2 No. 560/72/ /D.Naker/2015

• Official Report of Accident, Reported on November 20, 2015, the accident was occurred on Novem-ber, 20, 2015, Location Block 115; Victim’s name is. Muhamad Udin. Form No. FRM-GEN-010, Rev.03, date 20–11-2015.

The organization has maintained records of accident as presented in the “Dokumen Statistik Kecelakaan Kerja Kebun Burnai Barat Year 2016”. Based on the document, the accident metrics found as below:

1. Fatality: 0

2. Accident without loss time (lost time): 0

3. Medical Treatment / First Aid (Without tanpa lost time): 0

4. Employee Number: 216 numbers (Burnai Barat Estate)

5. Total of Accident (point 1, 2 dan 3): 0

6. Total of lost time (Number of workingdays losses): 0

7. Total of work hour (total HK employee x 7 x total employee) + extra time: January: 39,799 and Feb-ruary: 38,302 hours

It was observed most of HCV areas in Burnai Barat estate were burned during dry season In year 2015. There is no investigation the cause of fire and recorded properly to be considered for correction and cor-rective action. HCV burned in Block 30 was not recorded on PoL8/D-04/IX/2015/SPK Sek TG Lubuk. Also not consistent with SOP PRO-GEN-014 rev. 05. This is raised as non conformity (NCR No. 2016-04 of 07).



It was observed most of HCV areas in Burnai Barat estate were burned during dry season In year 2015. There is no investigation the cause of fire and recorded properly to be considered for correction and cor-rective action. HCV burned in Block 30 was not recorded on PoL8/D-04/IX/2015/SPK Sek TG Lubuk. Al-so not consistent with SOP PRO-GEN-014 rev. 05




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Criterion 4.8: All staff, workers, smallholders and contractors are appropriately trained.

Findings: There is evidence that the workers are appropriately trained. Especially for Mill, certificates of competency for operators are available, i.e.:

• Abdul Roni, certificate holder of OHS Crane Operator, type Hoist Crane, Class II, valid until May 19, 2020.

• Mustopa, certificate holder of OHS Crane Operator, type Overhead Travelling Crane, Class I, valid until May 19, 2020.

• Muhammad Shehhu, certificate holder of OHS Crane Operator, type Wheel Loader, valid until May 19, 2020.

• Muhsirun, certificate holder of OHS Crane Operator, type Overhead Travelling Crane, Class II, valid until Arch 18, 2018.

• Soppi, certificate holder of OHS Crane Operator, type Overhead Travelling Crane, Class I, valid until May 19, 2020.

• Tri Waluyo, certificate holder of OHS Crane Operator, type Wheel Loader, valid until March 18, 2018.

• Tri Waluyo, certificate holder of OHS Crane Operator type Over Head Travelling Crane, Class II, valid until March 18, 2018.

• Agus Pranoto, certificate holder of Welder Class II, Nomor 566 / 672 / VI / Nakertrans / 2014.


Criterion 5.1: Aspects of plantation and mill manag ement, including replanting, that have environ-mental impacts are identified, and plans to mitigat e the negative impacts and promote the positive ones are made, implemented and monitored, to demons trate continuous improvement.

Findings: The company has defines a document Environmental Impact Assessment (EIA) which was approved by the Head of the Environmental Management Agency of South Sumatra Province No.: 660 / KPTS / BAPEDALDA / 2004 dated November 10, 2004. There was no revision to the document because there are no changes in the area, the location of activities, types of plants, as well as palm oil mill production capacity. The company has reported environmental management activities for the second half of 2015 at February 24, 2016 to the Head of the Environment Agency of OKI District, Governor of South Sumatera, Head of the Environment Agency of South Sumatera Province and Regent of OKI District.. The environmental management report includes a report on the physical and chemical environment components, biotic environment, social environment that has been referred to the document environmental management plan. Records of regular report on environmental management in accordance with relevant regulations were maintained appropriately. The company carries out monitoring of multiple parameters; all the parameters tested are within the legal limits for each parameter. Parameters were tested and reported in the environmental document are: Mill effluent, ambient air, groundwater and surface water (pH and BOD test results), exhaust emissions gen-erators and boilers, methane gas, and exhaust emissions of vehicles. Compliance status : Full Compliance




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Criterion 5.2: The status of rare, threatened or en dangered species (ERTs) and high conserva-tion value habitats, if any, that exist in the plan tation or that could be affected by plantation or mill management, shall be identified and their cons ervation taken into account in management plans and operations.

Findings: Until recertification audit, there is no changes on company’s identified HCV, the company use HCV as-sessment result that was conducted by Daemeter Consulting conducted in late July and October 2009. Following information stated on the HCV assessment report it was informed that HCV areas identified in Burnai Barat estate included HCV 3, HCV 4.1 and HCV 4.3, whereas potential HCV areas were HCV 1.2, 1.4 and 5 and one area with probability of potential HCV status, i.e HCV 1.3. In Burnai Timur estate, some potential HCV areas identified included HCV 1.3, 1.4 and areas with probability of potential HCV status were HCV 1.2, 3, 4.1. Burnai Barat estate and Burnai Timur estate owns a map with potential HCV area with scale of 1:35,000. There is HCV area management plan e.g. fo Burnai Barat estate (FRM-GEN-036). Activites to be con-ducted regularly for year 2015 such as:

• HCV area monitoring • Hunting area mapping • Potential encroachment area mapping • HCV signboard control and additional HCV banner plat • Watergate maintenance • Signboard HCV development on block 028; 030;014;013 and 038 • Hunting restriction, spraying, manuring and weeding at HCV area • HCV boundary sign development • Hardwood trees planted • Iventory flora and fauna in HCV area • Fire monitoring • Water level monitoring

The company has a standard operating procedure of Flora and Fauna Protection as per document num-ber: SOP-GEN-14 rev 01 effective date 21 November 2012 and revision date October 1, 2014 where the standard operating procedure states the protection status of species identified according to IUCN, CITEs or local regulations. There are potential hunting area map and ecroacment area map available on the BB estate. There are some records of HCV management activities sush as minutes HCV signboard installa-tion dated November 20, 2015 only two signboard installed from 5 planned. HCV management plan for year 2016 has been established, there are 16 activities will be conducted in year 2016 periode. The implementation will be checked during next surveillance audit. At the audit time, the audit observed ost of HCV area ware burned, the company made report of summary HCV area that was burned as seen on “Summary of Fire in Burnai barat estate year 2015” and was re-ported on local police office as seen on document” laporan tentang peristiwa kebakaran” form model D, No. PolL8/D-04/IX/2015/SPK Sek TG Lubuk. However it was sight HCV near block 30 was burned and not included on the report stated above and company has no detail investigation the cause of land burned as consideration to prevent another land burned in the future. Records of monitoring the implementation of HCV habitat in Burnai Barat Estate sampled was recorded in April 2015 and Burnai Timur Estate recording is sampled in March 2015 and April 2015. However, in the company’s regular HCV monitoring reports, there is no mention of the protection status of each species identified in accordance with the company’s SOP. Such information should be included in monitoring re-ports for easy reference on the protection status of the species. This was noted as an observation. Burnai Barat estate has a programme to regularly educate the workforce about the status of RTE species, to prevent hunting, capture, harm, collect or kill these species, as stated on FRM-GEN-036 for periode 2015 were planned on March and September, 2015. Evidence of socialization activities were sight on June 06/01/2016; September 01, 2015. There is Socialization of SOP-GEN-14 Flora and Fauna Protec-




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tion dated May 09, 2015. Regular program to educate the workforce for year 2016 were planned on January, June and September 2016. Evidence of socialization for January 2016 as recorded on minute’s socialization on January 01, 2016 such photograph, list of participant attaended by harvester operations and tranporter.

Monitoring of the existence of Flora and Fauna as observed on “Berita Acara Pendataan Jenis Fauna and Flora in Burnai Barat Estate dated November 14, 2015, It was sight on the report 21 Aves types; 7 mamals found surrounding on company’s area not only in HCV area, and 2 identified flora however moni-toring result still not inform about the status of HCV and RTE that affected by plantation activities to be consider for development of company’s management plan. This is raised as non conformity (NCR No. 2016-05 of 07 ). Some HCVs areas were visited during the recertification audit, it was sight HCV locations were identified side a side with community area such as HCV at bloc 02; block 015; block 014 and block 13. It was also found the HCV boundary was falled down by excavator belong to community in block 014. However there is no evidence of negotiated agreement that optimally safeguards both the HCVs and community land. This is raised as non conformity (NCR No. 2016-05 of 07 ). Compliance status: Non Compliance.


Monitoring of the existence of Flora and Fauna as observed on “Berita Acara Pendataan Jenis Fauna and Flora in Burnai Barat Estate dated November 14, 2015, It was sight on the report were 21 Aves types; 7 mamals found surrounding on company’s area not only in HCV area, and 2 identified flora however moni-toring result still not inform about the status of HCV and RTE that affected by plantation activities to be consider for development of company’s management plan.


It was sight HCV locations were identified side a side with community area such as HCV at bloc 02; block 015; block 014 and block 13. However there is no evidence of negotiated agreement that optimally safeguards both the HCVs and community land

Criterion 5.3: Waste is reduced, recycled, re-used and disposed of in an environmentally and socially responsible manner

Findings: The company still maintains a documented identification of wastes. At Burnai Timur estate, source of waste are listed in waste identification form no. FRM-EST-028 Rev.01. Among waste sources identified include those from housing, empty brunch, effluent and pesticides, fertilizer bags, palm oil mill effluent. However, the list is not is updated to include source of wastes from office and workshop. The mill also has a documented identification of wastes for year 2015 where all wastes and sources of wastes are identi-fied. For domestic waste, the company carries out collection of domestic wastes and separation to organic and inorganic wastes before disposal into separate landfills for organic and inorganic waste within the estate. At Burnai Timur Estate, as sampled at Block 104, landfill for organic and inorganic wastes were separated and properly disposed. No burning evidence found. In the mill, wastes were also well segregated and dis-posed accordingly in the separated bins as sampled at mill operations area and workshop. At the workshop, there was found 3 different colored bins, i.e. blue, yellow and red meant for different types of wastes, however in actual, the wastes thrown inside were not the correct types of wastes for those bins.

The company has a license for storage of hazardous wastes dated 18 April 2013 and valid for 3 years, stating maximum storage time of 90 days. The mill is process to apply for extension of the hazardous waste storage time. The license also stated no storage of hazardous wastes at other locations other than the specified location, which is the hazardous waste store at the mill.




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Sample records of hazardous waste delivery notes was sighted at Burnai Barat estate for delivery of haz-ardous wastes to the mill, i.e.:

• 137 litres of used oil, 27 pcs of used filters, 3 kg of contaminated goods and 3 pcs of used Accu delivered on October 17, 2015

• 400 litres of used oil, 53 pcs of used filter , 3 kg of contaminated goods and 1 pc of used Accu delivered on December 14, 2015

All hazardous wastes collected from the estates and from the mill itself are updated by the mill in monthly hazardous waste inventories which is divided into type of hazardous waste received each month, date in, source of waste, amount collected, maximum storage date and also date out and amount collected, when applicable.

At Burnai Timur Estate, pesticides containers are kept in the store after triple rinse before sent for dispos-al at the mill. Used oil, contaminated waste, used filters, battery kept in the hazardous waste (LB3) store. Bunding is built up with the grease trap to prevent dispersal to the drain. At workshop, bins allocated to collect waste and separation between contaminated waste and other type of waste. Sighted in sample de-livery slips for hazardous waste delivered to the mill, i.e.:

• October 01, 2015 included used oil (307 litres), oil filters (31 pcs), used accu (4 pcs), • November 03, 2015, hazardous wastes delivered included used oil (200 litres) and oil filters (18

pcs).


Criterion 5.4: Efficiency of energy use and use of renewable energy is maximized.

Findings: Burnai Timur has a plan for improving efficiency of the use of fossil fuels and to optimise renewable ener-gy shall be in place and monitored.

The mill monitors production of renewable energy through use of shell and fibre for running the mill boiler. As seen in the mill’s shell and fibre monthly analysis record for year 2015. The data of fibre and shell for year 2015 presented on below table.

Fibre Shell Fibre Shell Total

January 10.491,00 2.264 1.435,124 826,665 1.435,124 172,763 1.607,887

February 9.350,00 1.968 1.279,063 736,770 1.279,063 361,476 1.640,539

March 11.222,00 2.286 1.535,217 884,321 1.535,217 153,288 1.688,505

April 14.297,00 2.900 1.955,849 1.126,615 1.955,849 226,143 2.181,992

May 23.377,00 4.681 3.197,931 1.842,083 3.197,931 577,928 3.775,859

June 23.104,00 4.585 3.160,639 1.820,602 3.160,639 587,341 3.747,980

July 17.097,00 3.542 2.338,851 1.347,233 2.338,851 320,492 2.659,343

August 17.727,00 3.444 2.425,105 1.396,917 2.425,105 391,966 2.817,071

September 24.040,00 4.442 3.288,637 1.894,332 3.288,637 631,794 3.920,431

October 27.283,00 5.039 3.732,365 2.149,930 3.732,365 847,116 4.579,481

November 25.474,00 4.526 3.484,817 2.007,336 3.484,817 783,546 4.268,363

December 18.081,00 3.751 2.473,431 1.424,754 2.473,431 587,411 3.060,842

Total 221.543,00 43.428,00 30.307,03 17.457,558 30.307,029 5.641,264 35.948,293

Usage for Steam (Tonne)FFB Processed

(Tonne)

CPO (Tonne)

Production (tonne)Month




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Fibre Shell Total

January 3.874,835 725,606 4.600,441 0,439 2,032

February 3.453,470 1.518,202 4.971,672 0,532 2,526

March 4.145,086 643,811 4.788,897 0,427 2,095

April 5.280,792 949,802 6.230,595 0,436 2,148

May 8.634,414 2.427,302 11.061,716 0,473 2,363

June 8.533,725 2.466,837 11.000,562 0,476 2,399

July 6.314,898 1.346,069 7.660,967 0,448 2,163

August 6.547,784 1.646,260 8.194,044 0,462 2,379

September 8.879,320 2.653,540 11.532,860 0,480 2,596

October 10.077,386 3.557,894 13.635,280 0,500 2,706

November 9.409,006 3.290,900 12.699,905 0,499 2,806

December 6.678,264 2.467,131 9.145,395 0,506 2,438

Total 81.828,978 23.693,354 105.522,333 5,676 28,652

KCal per Tonne FFB

KCal per Tonne CPO

MonthValue of calory (Kcal)

The mill has a documented environmental objectives, targets and programs for year 2015 which include a plan to improve efficiency of fossil fuels and planned schedule. The activities to be carried out include in-creasing usage of shell and fibre for the boiler and turbine generation, usage of the mill’s smaller 150kVA genset during holidays if the mill is not processing, usage of government supplied electricity for domestic usage of the mill is not operational to reduce usage of diesel for the genset, Compliance status : Full Compliance

Criterion 5.5: Use of fire for waste disposal and f or preparing land for replanting is avoided except in specific situations, as identified in the ASEAN guidelines or other regional best practice.

Findings:

The company has zero burning policy stated on July 6, 2010 by Region III General Manager South Suma-tra. The company has land clearing procedure (Pro-EST-002, revision 03, effective date March 1, 2007, revision date October 1, 2014. In the procedure list requirement that land clearing not conducting with fire or zero burning.

The company not conducting fire land on replanting. The company used mechanis equipment for stack-ing. The company was conducting replanting from year 2014. This is the progress PT Tania Selatan i.e:

Year 2014

• Felling: 362.49 Ha

• Chipping: 362.49 Ha

Year 2015

• Feliing: 471.68 Ha



Criterion 5.6: Plans to reduce pollution and emissi ons, including greenhouse gases, are devel-oped, implemented and monitored.




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Findings: An assessment of all polluting activities has been conducted, including gaseous emissions, particu-late/soot emissions and effluent, following SOP No. PRO-GEN-018 issued November 19, 2012, the assement was conducted once a year as a basic for GHG emission calculation. According to the assess-ment result, sources and activities generate of pollution are:

• Plantation activities i.e. land conversion; fertilizer (mineral) manufacture and transport; N2O from fertilizer (minerl & organic) application and fuel consumption

• Mill activities i.e. POME; fuel consumption; grid electricity utilization; PK from own mill Significant pollutants and greenhouse gas (GHG) emissions has been identified, and plans to reduce or minimise them as recorded on document “Identifikasi Aktivitas Sumber Emisi (GRK) 2015 doc. FRM-084 rev.03 e.g. to minimize emission from Genset operation with siginificant level 1, mill will conduct regular maintenance and analize the emission regularly at least twice a year, repair broken equipment imediatelly, development of metan capture, monitoring of emission from transporter by regular maintenance twice a year, etc. The mill has document of waste identification year 2015 as recorded on FRM-GEN-058. GHG emission for year 2015 was calculated using Palm GHG calculator, the final emission value per product according to year 2015 production result are CPO 1.69 tCO2e/t product and for PK tCO2e/t. Total field emission from owned criop is 7494.55 tCO2e; outgrowers 58162.04 tCO2e and total mill emission is 2,9587 tCO2e. Information about GHG emission for year 2015 was submmited to RSPO secretariat on February 04, 2016. Compliance status: Full Compliance. Criterion 6.1: Aspects of plantation and mill manag ement including replanting that have social impacts are identified in a participatory way, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continuous improvement. Findings: SIA documents preparation was conducted in participatory way through FGD method, consultation and communication with community leaders and village officials in 27 villages, for example, in Burnai Timur Village, on August 12, 2009. The villages located around the company are Burnai Barat Estate which is surrounded by six villages, Burnai Timur Estate which is surrounded by 10 villages, and Bambu Kuning Estate is surrounded by 11 villages. To increase the positive impact and reduce the negative impact, the company carries out monitoring and evaluation of the implementation of SIA coverage more than once in a year, here are material of monitoring and evaluation : land acquisition, access to resources, the risk of accidents and occupational health, public perception, job vacancy, marginalization of groups, social con-flicts, revenue increasing, capacity building for human resources, strengthening community organiza-tions, changes in habits and environment, health, religion and education. The company carries out the monitoring and evaluation of the implementation of SIA coverage once a year. SIA study also includes smallholder farmers as a group of impact recipients. Company build a partner-ship with seven (7) Village Cooperatives Unit, those are: Bumi Jaya in Bumi Harapan Village, Village Cooperatives Unit of Puma in Patwa Village, Village Cooperative Unit of Tunggal Mulya in the village of Sinar Harapan Mulya, Village Cooperatives Unit of SSB in the Burnai Timur village, Village Cooperatives Unit of Dwi Tunggal in Tania Makmur Village and Lempuing, Village Cooperatives Unit of Tani Mandiri in the Suka Maju Village, Village Cooperative Unit of Maju Jaya in Suka Jaya village. Cover an area of 6,158.3 ha, 113 groups, 2,708 members, the construction of smallholders 1991/1992, total production in 2015 amounted to 97,156,274 tones. Compliance status : Full Compliance

Criterion 6.2: There are open and transparent metho ds for communication and consultation be-tween growers and/or millers, local communities and other affected or interested parties.




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Findings:

The Company has procedures of Communication, Consultation and Coordination with stakeholders (Number of Document PRO-BNM-012, Revision 03, and effective October 15, 2015, Revision Date Octo-ber 1, 2014). This procedure was made as a guide to the technical implementation of the communication, consultation and coordination between the company and its stakeholders, in order to be sure every step in making decisions, actions, implementation of activities so company’s operational activity will run smoothly. The person in charge is a public speaker and CD officer.

The interview with the head of Burnai Timur village and officials of Purwo Asri village, it was known that the company had conducted RSPO socialization which included socialization of communications proce-dures, consultation with stakeholders. The village head understands the procedures of communication with the company.

The Company has two (2) personnel of public speakers :

• On behalf of Sunardi, as CDO (Decree. No. 015 / TS-HRD / SK / I / 2014).

• On behalf of Mulyadi, as BM Officer (Decree No. 009 / TS-HRD / SK / III / 2013).

In general, the main task is to carry out communication and consultation with stakeholders and bridging interests between company and stakeholders, which is affected by the company's existence.

The Company has compiled a list of stakeholders on January 4, 2016. In the provinces level, there are 39 stakeholders, 20 stakeholders in district level, 9 stakeholders in Police Agency, 8 Stakeholders in National Army (TNI), 5 stakeholders in sub districts government, 19 stakeholders in Village Government, 7 stake-holders in Village Cooperative Unit, 8 stakeholders in school, 19 stakeholders in NGO, 5 stakeholders in health care centers, 3 stakeholders in Bank, 8 stakeholders in contractors and suppliers, 134 stakehold-ers in contractors. Information of stakeholder contain name, institution, address and phone number. Per-son in Charge for drafting the list of stakeholders is a CDO and a list of stakeholders is updated once a year.

Compliance status : Full Compliance Criterion 6.3: There is a mutually agreed and docum ented system for dealing with complaints and grievances, which is implemented and accepted by al l parties. Findings:

There were Complaints Procedures (Number of Document: PRO-HRD-004 effective on May 18, 2015). In general, the procedure is that employees submit grievances or complaints orally or in writing to the boss and then forwarded to the PGA / Officer of EMC (LKS) by filling the form of complaint (FRM-HRD-075). Complaint report was then submitted to the unit leader / chairman of EMC. If it was requested, the com-pany guarantees the confidentiality of the whistleblower’ identity by considering the level of issue sensitivi-ty, the scale of the impact if the issue is published or risk of retaliation. The procedure has been dissemi-nated to all levels of employees, the company was also installed a complaints procedure and employees’ denunciation in residential, office, and mess, Estate Health Center. The person/Department in charge to receive complaints and grievances is PGA Department.

Results of interviews with construction workers, it was known that they understand the procedures to submit a complaint to the company, the complaint settlement usually less than one week.

The Company has documented every worker’s complaints and responses on the form of complaint re-ceipt. The worker’s complaints have to be resolved, maximum in one week. The department in charge for documenting employee complaints is PGA Department. For example: On January 27, 2016 of on behalf M. Sidik delivered a complaint about leaking in his house, and then on January 29, 2016 the worker’s complaints had been resolved by replacing a leaky roof.

Compliance status : Full Compl iance




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Criterion 6.4: Any negotiations concerning compensa tion for loss of legal or customary rights are dealt with through a documented system that ena bles indigenous peoples, local communi-ties and other stakeholders to express their views through their own representative institutions. Findings:

It was available Land Acquisition Procedures (Number of Document: SOP-BMN-018) Revision 3, on Oc-tober 1, 2014, effective in March 1, 2007. This SOP was drafted as a basic standard and it was used to ensure that the decision, step or action in the process of land acquisition for palm oil estate industry is done properly and correctly in accordance with the applicable rules and regulations, and to meet the prin-ciples and criteria of the RSPO, HCVF and FPIC particularly for land-related to the interests of the public and communal land / customs.

Based on the information, that was expressed by the company, the land acquisition for estate in Burnai Barat, ended in 2007 and Estate in Burnai Timur at 2004. This procedure has been disseminated to the community around the estate. The last planted year of Burnai Barat estate is in 2006/2007, and Burnai Timur Estate is in 2004. Company has Land Acquisition Procedures (described in indicator 6.4.1). Based on the information expressed by the company, it was explained that the price of land compensation de-pends on negotiations with land owner. Land acquisition was witnessed by the village chief and head of sub district. There is no customary land or customary rights in the area of the company. The last land ac-quisition in Burnai Barat Estate at 2006 and in the Burnai Timur at 2004. There was recapitulation of community land purchase by PT Tania Selatan, the information consist of Number, Persil, name, area (ha), price (IDR), the name of the village, the payment date. The complete document of land acquisition was stored in RO Office at Palembang.


Criterion 6.5: Pay and conditions for employees and for employees of contractors always meet at least legal or industry minimum standards and ar e sufficient to provide decent living wages.

Findings:

There is Internal Memorandum (No. 2589.01 / HRRI / INT-II / 2016) of the HRR Manager, was addressed to GEM, Head of OU, head of Dept on February 17, 2016. Decision of wages increasing and benefit of working period was effective since January 1, 2016. The increasing in salary / wages in 2016 as follows:

• Employees of class 2A (bottom) wage in 2016 amounted to IDR. 2,281,300.00

• Freelance Employees (KHL) is IDR. 91,252.00

Wages of workers based on District Minimum Wages of Musi Banyu Asin (Decree No. 926 / KPTS / TRANSMIGRATION AND LABOR AGENCY/ 2015 on Minimum Wage of Musi Banyuasin 2016, is IDR, 2,281,300.00. In District.Ogan Ilir hasn’t been yet available District minimum wages because it has not had a wage councils.

Examples of implementation of the wages payment:

• Workers of KHT on behalf of Dwi Astuti as early childhood teachers receive a wage of IDR. 2,416,974.00 For February 2016.

• Workers of KHL on behalf of Iis Romania, working 13 days, a wage of IDR. 1,295,056 for Febru-ary 2016.

Company has already provided adequate infrastructure for employees. Based on a visit to the G10 em-ployee housing in Burnai Barat Estate and housing Block 05, it was known that housing facilities were in good condition, the availability of adequate water and clean residential neighborhood. In Burnai Timur Es-tate, it was available the Employees Cooperative of Tania Bersama, established in 2002, this type of lend-ing and borrowing and groceries, members of December 2015 as many as 412 people. In Burnai Barat




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Estate, there is Market, in Tanjung Baru village and the Bulak Kapal Village, about 7 km from employee housing, Burnai Barat Estate provides transportation for employees shopping trip, every payday in date of 7th in each month, traders come into the estate, it is available 5 shop owned by private, providing for gro-ceries.

Compliance status : Compliance with observation Criterion 6.6: The employer respects the right of a ll personnel to form and join trade unions of their choice and to bargain collectively. Where the right to freedom of association and collec-tive bargaining are restricted under law, the emplo yer facilitates parallel means of independent and free association and bargaining for all such pe rsonnel. Findings:

The statement of recognition of freedom of association contained in the Collective Labor Agreement PT Tania Selatan 2015-2017 Article 7 of Employers Recognition Against Recognition to Workers Unions Rights, Article 8 of the Recognition of Workers Unions Against Employers Rights, Article 9 of the Facili-ties and Employers’ assistance For Workers Union, Article 10 Employers Guarantee Against Workers Unions.

There was Workers Union of Wilmar, Burnai Barat Estate that has been already registered in the Labor and Transmigration Agency District. Ogan Komering Ilir No. 251 / II / TRANSMIGRATION AND LABOR AGENCY / 2012.

Workers Union of Wilmar, Burnai Timur Estate has been already registered in the Labor and Transmigra-tion Agency District. Ogan Komering Ilir No. 251 / 0219 / TRANSMIGRATION AND LABOR AGENCY / 2005.

Wilmar Workers Union, POM Tania Selatan has been already registered the Labor and Transmigration Agency District. Ogan Komering Ilir No. 251/08 TRANSMIGRATION AND LABOR AGENCY / 2012.

According to the statement hat was expressed by workers union officials, explained that the company provides for freedom of association, no pressure and no discrimination.

According to the statement expressed by the chairman of the Indonesian Workers Union (SPSI,) ex-plained that the company has given the rights of employees, wages are in accordance with the Province Minimum Wages, providing infrastructure, providing training to workers etc. All workers have been already registered as participant of Labor Health Assurance (BPJS health). No child labor, no discrimination against workers. In order to avoid child labor company asks KTP (Identity Card) and KK (Family Card).

There has been ever conducted a meeting between the company and the workers union in January 2015 to discuss the CLA document period 2015-2017

Compliance status : Full Compl iance Criterion 6.7: Children are not employed or exploit ed. Work by children is acceptable on family farms, under adult supervision, and when not interf ering with education programmes. Children are not exposed to hazardous working conditions. Findings:

The Company has a policy on child labor that was made in September 2010, which is the company does not tolerate the exploit of child labor throughout the operation and facilities.

Based on observations of employee data in February 2016, there were no employees under the age of 18 years.

The policy had been disseminated to employees, contractors and the local community leaders surround-ing villages dated January 5, 2016.According to the statement expressed by the chairman of the Indone-sian Workers Union explained that the company did not employ workers less than 18 years old.





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Criterion 6.8: Any form of discrimination based on race, caste, national origin, religion, disabil-ity, gender, sexual orientation, union membership, political affiliation, or age, is prohibited.

Findings:

The Company has a policy of equal opportunities to obtain employment, created on September 2010, signed by the Head of Plantation Group and Head of CSR Group. The policy explains that Wilmar sup-ports the principles of justice and aims to treat everyone with respect, free from unlawful discrimination and ethics. In particular, this policy aims not to discriminate against gender, race or ethnicity, disability, sexual orientation, age or belief; but to develop a global workforce that has the ability based on objective assessment.

Policies concerning equal treatment to gain employment are also stipulated in the CLA PT. Tania Selatan Chapter III, the Employment Relations, Article 12 of System of Recruitment Procedure which states that recruitment is done by the company in accordance with company standards and refer to the existing legis-lation.

The policy had been disseminated to employees, contractors and the local community leaders in sur-rounding villages on January 5, 2016.

Based on interviews with Workers Union it was known that the company is not discriminatory in treating workers since the acceptance till work in all types of jobs.

Based on the list of employees in February 2016 it was known that employees from diverse backgrounds and different social identities. The list of employees explained about Employee Name, Place & Date of Birth, Date In working, Origin of employees, Religion, Education, Local and Non Local, Race, and job title. Numbers of employees in Burnai Barat Estate are 277 employees, Burnai Timur Estate 210 employees, POM Tania Selatan 163 employees.

The Company has procedures of Performance Assessment (Document Number. PRO-HRD-003, dated October 1, 2014). The procedure is explained: the performance appraisal is conducted once a year in ear-ly November; it was carried out objectively based on evidence in the field or the workplace. The depart-ment in charge is Department / Region and HRD. The company can provide evidence of appointment of freelance employees (KHL) become permanent employees (KHT) with work absenteeism, and evaluation result of activities as requirements.


Criterion 6.9: A policy to prevent sexual harassmen t and all other forms of violence against women and to protect their reproductive rights is d eveloped and applied.

Findings:

The Company has a policy on sexual harassment, which is published on September 2010, ie Wilmar strive to create a conductive working environment, characterized by equality and mutual respect. The pol-icy encourages the reporting of all incidents of sexual harassment experienced by each individual, no ex-ception in gender or age-as a result of working relation with the company. Wilmar will take measures to prevent such incidents and act fairly quickly to any reports of sexual harassment with a discreet and con-fidential manner. The policy has been introduced to employees on January 5, 2015 at the employee's home yard in Block H-4. Results of interviews with gender committee, Burnai Barat Estate, it was noted that no cases of sexual harassment incident. There was Gender Committee Organization, Burnai Barat Estate, and Chairman: Lian, Secretary: M. Sidiq. Burnai Timur Estate, chairman: Magdalena, Secretary: Leni, members of 29 people.

Policy on the protection of reproductive rights in the CLA document, period 2015-2017, Article 5 about maternity leave for an employee who is pregnant, and will give birth are entitled to maternity leave for one a half months before giving birth and 1.5 months after giving birth, and Article 36 of Menstruation Leave, those are for employees or women workers in the menstrual period, feel pain and tell employers, not obliged to work on the first day and the second at the time of menstruation, by notifying the relevant su-pervisor and or paramedics. Based on interviews with women workers (Teachers of Early Childhood Edu-cation) in Burnai Barat Estate, It was known that the workers understand the reproductive leave entitle-




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ments, ie 2 days menstrual leave and maternity leave is three months.

There were Complaints Procedures (Number of Document: PRO-HRD-004 effective on May 18, 2015. In general, the procedure is that employees submit grievances or complaints orally or in writing to the boss and then forwarded to the PGA / Officer of EMC (LKS) by filling the form of complaint (FRM-HRD-075). The procedure has been disseminated to all levels of employees on January 15, 2015. The documenta-tion of complaint from employee was noted and stored in PGA Department. For example: October 20, 2016 on behalf of Amran delivered a complaint about leaking in his house , on October 28, 2016 the worker’s complaints had been resolved by replacing a leaky roof.


Criterion 6.10: Growers and mills deal fairly and t ransparently with smallholders and other local businesses.

Findings:

Compliance status:

It was available a document of FFB pricing on March 2016 (Period I) set by the Plantation Office of South Sumatra province through Letter No. 525/2018-VI.3 / BUN on March 10, 2016. The price of FFB per kg, plant age 3 years, is IDR 1,337.99 On the 10th – 20th years IDR 1,512.16, on the 25th year IDR 1,398.06.

FFB price is determined by a meeting attended by the parties; those are representatives of the Company, Cooperative Management and Plantation Office.

FFB Price which is used now and previously, it has been known by the farmer / management of Village Cooperative Unit. Cooperatives are involved in setting the price of FFB. FFB pricing mechanism was agreed by the parties in every two weeks.

FFB price of smallholder refers to the price set by the Department of Plantation Prov. South Sumatra, which is issued twice in one month.

FFB pricing from suppliers or independent farmers was through agreement between the company and the supplier or independent farmers. For example, provided the FFB purchase agreement (No. 031 / TS-PLBG / TBS / I / 2015) between on behalf of Sujono and on behalf of Susanto as the representative of the directors of PT Tania Selatan.

Based on the results of interviews with the management of Village Cooperatives Unit in Burnai Timur Vil-lage, it was stated that the FFB price for smallholder refers to the price set by South Sumatera Plantation Office; FFB price was obtained directly from Plantation Office of South Sumatra province and from the company. sales documentation of FFB from smallholder was kept in the office of ther Village Coopera-tive Unit respectively, while sales documentation of FFB from independent farmers were kept in the re-spective suppliers.

Payment of smallholder’ FFB and independent farmers were carried out by the 15th of each month. sales documentation of FFB from smallholder was kept in the office of ther Village Cooperative Unit respective-ly, while sales documentation of FFB from independent farmers were kept in the respective suppliers.

Based on the statement from the management of Village Cooperative Unit in Burnai Timur village, the FFB payment from the company was on time in accordance with the agreement. Not all our suppliers know about FFB pricing


Criterion 6.11: Growers and millers contribute to l ocal sustainable development wherever appro-priate.




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Findings:

Results interview with the CDO explained that CSR program to be evaluated each year with the aim to see the level of success and benefits, usually held in December each year. CSR program for the next year is based on the evaluation of CSR and based on input from Musrembang activities at the district lev-el, The company has participated in the development of community around the estate through education, health, infrastructure, productive business, sports, art, culture and religious activities.

There are 7 (seven) Village Cooperatives Unit as partner of PT Tania Selatan, those are Bumi Jaya Co-operative in Bumi Harapan Village, Puma Cooperatif in Patwa Village, Tungga Mulya Cooperative in the village of Sinar Harapan Mulya, SSB Cooperative in Burnai Timur Village, Dwi Tunggal Cooperative in Tania Makmur Village and Lempuing, Tani Mandiri Cooperative in Suka Maju Villlage, Maju Jaya Cooper-ative in Suka Jaya Village. Area of 6,158.3 ha, 113 groups, 2,708 members, the construction of small-holder 1991/1992, total production in 2015 amounted to 97,156,274 tones.

Kebun Burnai Timur:

•Providing football and volley ball for Purwo Asri village.

•Lending heavy equipment (backhoe loader) to repair the road in P. Asri village and Mulya Guna village.

•Maintenance of tomb in Muara Burnai 1 village.

•Contributing empty fruit bunch and fiber to the Group of Mushroom Cultivation in Bumi Harapan Village.

•Fogging as prevention of dengue fever in the Purwo Asri village.

Kebun Burnai Barat:

•Renovation of the road in Purwo Sari village.

•Road repairing and ditch constructing in Muara Burnai 2 village.

•Providing of 3 units desks and chairs to Qur’an Education School in Menang Raya village.

The company also has a CSR program in 2016 which is focused on education, health, social and religious community, reforestation, income generating activity (IGA) economy.

The results of the field visit to Purwo Asri village; it was known that the company had repaired roads in vil-lage. In the Burnai Timur village, company had provided infrastructure assistance for volleyball. The company has also prioritized local labor coming from the villages around the estate to work in the estate and palm oil mill.

Support of PT. Tania Selatan to smallholders, the Company provides regular guidance to smallholders. For example, IPM Training, spraying and fertilizer applications, implemented on 29 September 2015 in Vil-lage Cooperative Unit of Tunggal Mulia SP3. It was attended by representatives of each Village Coopera-tive Unit and KODRPRI under the authority of the Association of Sapta Tunggal Mandiri, participants 46 people. Socialization of definition and criteria of the RSPO, health and safety, PPE, NKT, SOP of harvest-ing, pruning , spraying, fertilizing were conducted on August 19, 2015.


Criterion 6.12: No forms of forced or trafficked la bour are used.

Findings:

The Company has a policy commitment of not to use trafficked labor and does not employ labor who has been forced. HRD is responsible for selecting workers under age of 18 years, do not accept and does not employ trafficked labor. Results of interviews with HRD and workers unions, it was known that all the company's workers is legal, there is no illegal trafficked labor. The tracking result on the list of employees who worked in company on February 2016. It was noted no trafficked labor was found. The company em-ploys a permanent worker and daily worker. Employment contracts agreement between employers and




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employees is in Indonesian language that is easily understood. For example, SPK No.027 / SPK / PCH / TS-MCC / XI / 2014, that is between PT Tania Selatan and on behalf of Ardiyanto Sanjaya.


Criterion 6.13: Growers and millers respect human r ights.

Findings: Wilmar international limited “Wilmar” as Asia’s leading agribusiness group, endeavorus to cundoct its in a responsible and ethical manner. The group recognizes that its business activities will have impact on so-ciety and environment. In its supply chain, Wilmar strives to respect and protect human rights to personal security that is free from harassment or abuse of any kind, safe, clean and healthy workplace and living environment. The Company has drafted "Human Rights policy" endorsed by the Group Plantation Head and Group CSR Head. Wilmar Group respects freedom of association. The Company does not use forced labor, no under-age workers. Rights of local communities are respected through the application of FPIC (Free Prior, Informed, and Consent). Socialization of human rights policy has been carried out on December 22, 2015 which was attended by local government officials, community leaders, and BPD from the village of Burnai Timur, Rangkui Jaya Mulya Guna, Bumi Harapan, Patwa, Ulak Kapal, Tanjung Baru, Cipta Sari, Mukti Sari, Tani Makmur, Sinar Harapan Mulya, mean while on May 27, 2015 was dissemination of human rights policy, to offices em-ployees, harvesting personnel, maintenance personnel, security and contractors. Compliance status : Full Compliance Criterion 7.1: A comprehensive and participatory in dependent social and environmental impact assessment is undertaken prior to establishing new plantings or operations, or expanding existing ones, and the results incorporated into planning, m anagement and operations. Findings: The company has defines a document Environmental Impact Assessment (EIA) which was approved by the Head of the Environmental Management Agency of South Sumatra Province No.: 660 / KPTS / BAPEDALDA / 2004 dated November 10, 2004. There was no revision to the document because there are no changes in the area, the location of activities, types of plants, as well as palm oil mill production capacity. The company has reported environmental management activities for the second half of 2015 at February 24, 2016 to the Head of the Environment Agency of OKI District, Governor of South Sumatera, Head of the Environment Agency of South Sumatera Province and Regent of OKI District.. The environmental management report includes a report on the physical and chemical environment components, biotic environment, social environment that has been referred to the document environmental management plan. Records of regular report on environmental management in accordance with relevant regulations were maintained appropriately. The company carries out monitoring of multiple parameters; all the parameters tested are within the legal limits for each parameter. Parameters were tested and reported in the environmental document are: Mill effluent, ambient air, groundwater and surface water (pH and BOD test results), exhaust emissions gen-erators and boilers, methane gas, and exhaust emissions of vehicles. SIA documents preparation was conducted in participatory way through FGD method, consultation and communication with community leaders and village officials in 27 villages, for example, in Burnai Timur Village, on August 12, 2009. The villages located around the company are Burnai Barat Estate which is surrounded by six villages, Burnai Timur Estate which is surrounded by 10 villages, and Bambu Kuning Estate is surrounded by 11 villages. To increase the positive impact and reduce the negative impact, the company carries out monitoring and evaluation of the implementation of SIA coverage more than once in a year, here are material of monitoring and evaluation : land acquisition, access to resources, the risk of accidents and occupational health, public perception, job vacancy, marginalization of groups, social con-




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flicts, revenue increasing, capacity building for human resources, strengthening community organiza-tions, changes in habits and environment, health, religion and education. The company carries out the monitoring and evaluation of the implementation of SIA coverage once a year. SIA study also includes smallholder farmers as a group of impact recipients. Company build a partner-ship with seven (7) Village Cooperatives Unit, those are: Bumi Jaya in Bumi Harapan Village, Village Cooperatives Unit of Puma in Patwa Village, Village Cooperative Unit of Tunggal Mulya in the village of Sinar Harapan Mulya, Village Cooperatives Unit of SSB in the Burnai Timur village, Village Cooperatives Unit of Dwi Tunggal in Tania Makmur Village and Lempuing, Village Cooperatives Unit of Tani Mandiri in the Suka Maju Village, Village Cooperative Unit of Maju Jaya in Suka Jaya village. Cover an area of 6,158.3 ha, 113 groups, 2,708 members, the construction of smallholders 1991/1992, total production in 2015 amounted to 97,156,274 tones. Compliance status: Full Compliance

Criterion 7.2: Soil surveys and topographic informa tion are used for site planning in the estab-lishment of new plantings, and the results are inco rporated into plans and operations.

Findings:

The Company has a semi-detailed soil map with a scale of 1: 50,000. Based on the soil map, there are several classes of land, i.e:

Burnai Barat Estate No Soil Class Soil class Abr Mgt Class Ha %

1 Binjai Bji C 592.65 18.50

2 Gajah Mati Gmi G 178.63 5.60

3 Gondang Gdg E 144.31 4.50

4 Terap Trp A 1,808.20 56.50

5 No data 476.21 14.90

Total 3,200.00 100.00

Burnai Timur Estate No Soil Class Soil class Abr Mgt Class Ha %

1 Bukit Tuku Btu C 62.89 2.27

2 Cherang Hangus Chs C 217.68 7.85

3 Kulai Kli A 69.41 2.50

4 Terap Trp A 659.96 23.82

5 Terap/red Trp/r A 1,761.25 63.56

Total 2,771.19 100.00

The company (Burnai Barat Estate) has no management strategies for planting on sloping areas. Based on the maps of topography, PT. Tania Selatan is a flat area covering an area of 1,208.12 ha undulating flat, covering an area of 35.98 ha undulating and hilly area of 0.09 ha and Burnai Timur Estate is a flat ar-ea covering an area of 2,735.03 ha flat undulating and undulating area of 36.16 ha. Compliance status: Full Compliance




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Criterion 7.3: New plantings since November 2005, h ave not replaced primary forest or any area required to maintain or enhance one or more High Co nservation Values.

Findings: Burnai Barat estate development was started after year 2009. Most of land clearing proceeds in year 2008. There was no development between year 2005 to 2007 eventhough land compensation procesed before year 2005. According to satelite imaginary, landsat 5 issued on April 29, 2000, land covered for Bunai Barat area according to location permit area consit of swamp; old shrub; young shurb and bare land. Those map was overlaid with Burnai Barat planted area map, there is no oil palm planted on swamp area, the company decided those swamp area become watersource area furthermore according to HCV identification assessment all swamp area were identified as HCV 4.1 and 4.3. According to spatial plan South Sumatera Province (apporved by local parlement on February 15, 2005) Penggunaan lahan di sekitar perkebunan menurut Spatial plan Sumatera Selatan (RTRWP 2005 to2015), all land for Burnai Barat estate are categorized as other usage land (Area Penggunaan Lain) for planta-tion area categor, and wet land. There is no primary forest or HCV area. All clasification land allows PT Tania Selatan to establish oil palm plantation. Local imaginary no 5 year 1992 showed that most of for-ested area surronding Burnai Barat estate had been cleared replaced with community agroforestry, mixed rubber plantation, intensif farming, and oil mill plantation. . Compliance status: Full Compliance

Criterion 7.4: Extensive planting on steep terrain, and/or on marginal and fragile soils, is avoided.

Findings:

The company (Burnai Barat Estate) has no management strategies for planting on sloping areas. Based on the maps of topography, PT. Tania Selatan is a flat area covering an area of 1,208.12 ha undulating flat, covering an area of 35.98 ha undulating and hilly area of 0.09 ha and Burnai Timur Estate is a flat ar-ea covering an area of 2,735.03 ha flat undulating and undulating area of 36.16 ha. Compliance status: Full Compliance Criterion 7.5: No new plantings are established on local peoples’ land without their free, prior and informed consent, dealt with through a document ed system that enables indigenous peo-ples, local communities and other stakeholders to e xpress their views through their own repre-sentative institutions. Findings:


Based on the information, that was expressed by the company, the land acquisition for estate in Burnai Barat, ended in 2007 and Estate in Burnai Timur at 2004. This procedure has been disseminated to the community around the estate. The last planted year of Burnai Barat estate is in 2006/2007, and Burnai Timur Estate is in 2004. Company has Land Acquisition Procedures (described in indicator 6.4.1). Based on the information expressed by the company, it was explained that the price of land compensation de-pends on negotiations with land owner. Land acquisition was witnessed by the village chief and head of sub district. There is no customary land or customary rights in the area of the company. The last land ac-quisition in Burnai Barat Estate at 2006 and in the Burnai Timur at 2004. There was recapitulation of community land purchase by PT Tania Selatan, the information consist of Number, Persil, name, area (ha), price (IDR), the name of the village, the payment date. The complete document of land acquisition was stored in RO Office at Palembang.




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Criterion 7.6: Local people are compensated for any agreed land acquisitions and relinquish-ment of rights, subject to their free, prior and in formed consent and negotiated agreement

Findings:


Based on the information, that was expressed by the company, the land acquisition for estate in Burnai Barat, ended in 2007 and Estate in Burnai Timur at 2004. This procedure has been disseminated to the community around the estate. The last planted year of Burnai Barat estate is in 2006/2007, and Burnai Timur Estate is in 2004. Company has Land Acquisition Procedures (described in indicator 6.4.1). Based on the information expressed by the company, it was explained that the price of land compensation de-pends on negotiations with land owner. Land acquisition was witnessed by the village chief and head of sub district. There is no customary land or customary rights in the area of the company. The last land ac-quisition in Burnai Barat Estate at 2006 and in the Burnai Timur at 2004. There was recapitulation of community land purchase by PT Tania Selatan, the information consist of Number, Persil, name, area (ha), price (IDR), the name of the village, the payment date. The complete document of land acquisition was stored in RO Office at Palembang. Compliance status: Full Compliance

Criterion 7.7: Use of fire in the preparation of ne w plantings is avoided other than in specific sit-uations, as identified in the ASEAN guidelines or o ther regional best practice.

Findings:

The company has zero burning policy stated on July 6, 2010 by Region III General Manager South Suma-tra. The company has land clearing procedure (Pro-EST-002, revision 03, effective date March 1, 2007, revision date October 1, 2014. In the procedure list requirement that land clearing not conducting with fire or zero burning.

The company not conducting fire land on replanting. The company used mechanis equipment for stack-ing. The company was conducting replanting from year 2014. This is the progress PT Tania Selatan i.e:

Year 2014

• Felling: 362.49 Ha


Year 2015

• Feliing: 471.68 Ha

• Chipping: 471.68 Ha Compliance status: Full Compliance

Criterion 7.8: New plantation developments are desi gned to minimise net greenhouse gas emis-sions.




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Findings: An assessment of all polluting activities has been conducted, including gaseous emissions, particu-late/soot emissions and effluent, following SOP No. PRO-GEN-018 issued November 19, 2012, the assement was conducted once a year as a basic for GHG emission calculation. According to the assess-ment result, sources and activities generate of pollution are:

• Plantation activities i.e. land conversion; fertilizer (mineral) manufacture and transport; N2O from fertilizer (minerl & organic) application and fuel consumption

• Mill activities i.e. POME; fuel consumption; grid electricity utilization; PK from own mill Significant pollutants and greenhouse gas (GHG) emissions has been identified, and plans to reduce or minimise them as recorded on document “Identifikasi Aktivitas Sumber Emisi (GRK) 2015 doc. FRM-084 rev.03 e.g. to minimize emission from Genset operation with siginificant level 1, mill will conduct regular maintenance and analize the emission regularly at least twice a year, repair broken equipment imediatelly, development of metan capture, monitoring of emission from transporter by regular maintenance twice a year, etc. The mill has document of waste identification year 2015 as recorded on FRM-GEN-058. GHG emission for year 2015 was calculated using Palm GHG calculator, the final emission value per product according to year 2015 production result are CPO 1.69 tCO2e/t product and for PK tCO2e/t. Total field emission from owned criop is 7494.55 tCO2e; outgrowers 58162.04 tCO2e and total mill emission is 2,9587 tCO2e. Information about GHG emission for year 2015 was submmited to RSPO secretariat on February 04, 2016. Compliance status: Full Compliance

Criterion 8.1: Growers and millers regularly monito r and review their activities and develop and implement action plans that allow demonstrable cont inuous improvement in key operations.

Findings:

During recertification audit, it was found no evidence that the company is using any chemicals containing paraquat, and also usage of chemicals for pest management is minimal and only carried out when there is evidence of attacks, as seen from records of chemical usage. Burnai Barat estate has a documented continuous improvement plan for environment and OSH for year 2016. For environmental related as-pects, the estate’s program is to continue usage of barn owl boxes and method to reduce usage of chem-icals. There is evidence this is effective as the estate has no records usage of rat bait and no stock of rat bait sighted. In addition, the estate has plan to prepared a washing area and divert the water used for washing to a septic tank, although it is not specified which location.

The mill is in progress to construct a methane capture facility since November 2014, as part of efforts by the company to reduce their greenhouse gas emissions. The mill also has a documented environmental objectives, targets and programs for year 2016 which include a plan to improve efficiency of fossil fuels and planned schedule. The activities to be carried out include increasing usage of shell and fibre for the boiler and turbine generation, usage of the mill’s smaller 150kVA genset during holidays if the mill is not processing, usage of government supplied electricity for domestic usage of the mill is not operational to reduce usage of diesel for the genset. Evidence was sighted in the form os monitoring of mill diesel usage and renewable energy generation data as explained under CR5.4. Compliance status: Full Compliance

RSPO Supply Chain: • RSPO SCCS The mill continues to apply Mass Balance as their selected supply chain option, and hence was assessed according to Module E – CPO Mills: Mass Balance of the RSPO Supply Chain Certification Standard 2014. At time of this audit, the mill has not made any sale of RSPO certified CPO or PK as the mill is only selling




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to PT Sinar Alam Permai – Martana Palembang, a refinery under Wilmar Group which is currently not yet RSPO Supply Chain certified. In future, once the refinery is certified, the mill plans to sell their CPO under as International Sustainability and Carbon Certification certified CPO and their PK as RSPO certified.

E1. Definition

Findings: As seen in Table 3 above, Burnai Timur mill FFB received FFB from certified and non certified FFB supli-ers, certified FFB comes from company’s onwned estate i.e. Burnai Barat and Burnai Timur (included on Tania RSPO P & C certificate) and company’s other certified estates i.e. Bambu Kuning, Dabuk Rejo, Su-ka Mulya and Bumi Arjo; while for non certified FFB comes from independen outgrowers. Information about all incoming FFB to Burnai Timur Palm Oil Mill for year 2015 and year 2016 (until February 2016) was explained on table 2 above. According to the nature of FFB supply to Burnai Timur Palm Oil Mill the company decide to implement RSPO SCCS with MB model. Compliance status: Full Compliance

E2. Explanation

Findings: Burnai Timur Palm Oil mill received 221,441 tonnes FFB from many sources such as company’s owned estates, smallholders and independent outgrowers. The actual tonnages of CPO and PK products that produced by the mill in year 2015 is 43,430.395 tonnes CPO and 12,965.964 tonnes PK. With OER 19.61 and KER 5.86. Until the audit time company has not sale certified product. All products sold under other certification scheme. The mill’s revised certified tonnages have been based on actual production for year 2015 which was seen in the mill’s mass balance report. The mill has been registered in the eTrace RSPO IT platform, and eTrace license approval requests for the company are applied directly by PT TUV Rheinland Indonesia and the certification body. Compliance status: Full Compliance

E3. Documented procedures

Findings:

The mill continues to apply their existing standard operation procedures which cover all Supply Chain re-lated activities from incoming FFB until product dispatch, while incoming order procedure is handled by trading department in Wilmar headquarters. The mill implements quality management system ISO 9001:2008, and as part of compliance to this standard, the mill established complete and up to date standard operation procedures. Burnai Timur POM has operated for Supply Chain Certification Model Mass Balance (MB).

The mill’s latest SCC related Standard Operation Procedure (SOPs) are as follows, which also covers procedures for receiving and processing certified and non-certified FFBs:

• Procedure for document management (PRO-GEN-002 Rev.004). Document retention time was re-vised to minimum of 2 years

• Management review (PRO-GEN-006 Rev.05, dated 18 April 2015) which includes management review for RSPO SCCS requirements.

• Mass Balance (PRO-MIL-014, Rev.02 dated I October 2014). This procedure describes how to in-put data into the mill’s mass balance sheet and also specifies that stock balance at the end of eve-ry 3 months must not be negative. The SOP specifies that all CPO/PK despatched shall be sent to the mill’s refinery at PT Sinar Alam Permai.

• Incoming FFB procedure (PRO-MILL-001 Rev.06, revised on February 23, 2016). This document




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specifies that all weighbridge slips and delivery forms for incoming certified FFB shall be stamped as certified.

• Production process procedure CPO & PK (PRO-MIL-002, Rev.03, dated 1 October 2014) • Delivery Order (DO) procedure (PRO-MIL-004, Rev.04, dated 1 October 2014) • Dispatch CPO & PK procedure (PRO-MIL-005 Rev.05, dated on 1 October 2014). This document

specifies that all weighbridge slips and delivery forms for incoming certified FFB shall be stamped as certified sustainable palm oil (CSPO)/ certified sustainable palm kernel (CSPK). Stamps used also include the RSPO certificate number of the mill; however the existing stamps applied still state the old RSPO certificate number and not the revised RSPO certificate number. Since the mill has no sale of RSPO certified material yet, this was noted as an observation as the stamps have not been used and the mill’s certificate will be revised again by PT TUV Rheinland Indonesia based on the revised tonnages certified.

• Projected overproduction information procedure (PRO-MILL-012, Rev.01 dated 1 October 2014). This procedure specifies that the mill shall report any overproduction of CPO and PK to the RSPO supply chain certification body when it occurs.

• SOP for FFB purchased SOP-MIL-044; • SOP Incoming FFB PRO-MIL-001 and • FFB traceability for CPO PK product PRO-MILL-015 revised February 23, 2016 • SOP FFB purchasing 001/TBS/VIII/2009 revision 02.

The mill head still assigend as management representative based on decree letter No. 2099.01/TS-HRR/SK/IV/2013 dated on April 11, 2013 The MR has overall responsibility for and authority over the im-plementation of these requirements and compliance with all applicable requirements. The MR has partici-pated in training on the latest RSPO Supply Chain Certification Standard conducted on 14-15 April 2015 at Tania Selatan Training Centre, conducted by 2 representatives from Wilmar’s Sustainability Depart-ment and attended by total of 30 partipants from several of Wilmar’s mills in the region. The training mate-rials were and found to be detailed and updated with the latest SCCS requirements.

Compliance status : Compliance

E4. Purchasing and goods in

Findings:

Burnai Timur Palm Oil Mill has SOP for FFB Purchase i.e. SOP 001/TBS/VII/2009 and SOP-MIL-044 veri-fies and documents the volumes of certified and non-certified FFBs received in accordance with Incoming FFB procedure (PRO-MILL-001 Rev.05, dated on 01 October 2014). This document specifies that all weighbridge slips and delivery forms for incoming certified FFB shall be stamped as certified. This was verified from sample weighbridge slips received from Burnai Barat and Burnai Timur estate that these are stamped as certified, while weighbridge slips from non-certified crop is not stamped.

The mill has mechanism for FFB supplier evaluation that regularly conducted every once a year. Result of evaluation was recorded on FRM-PRC-005, currently supplier evaluation were conducted only for non certified outgrowers, e.g. for CV Berkat Anugrah Raya Agung. However, evaluation of suppliers has not cover FFB legality issue to the sources of FFB and other conditions as mentioned on agreement between PT Tania Selatan and FFB supplier.

The company purchase FFB from outgrowers, the type of outgrowers devided into independent outgow-ers which is currentyly waiting for certification decision, after certificate awareded they will categorized as certified supplier, while other outgrowers still non certified. Since previous audit all smallhoder scheme has been excluded on the company’s certification scope. The certificate from TUV Rheinand Indonesia has exclude smallholder scheme since January 2015 however tonnages received from the previously certified scheme smallholders still included in the mill’s Mass Balance sheet as certified crop this is raised as non conformtities (NCR No.2016-07 of 07)

The company has a procedure to inform the Certification Body (CB) immediately if there is a projected overproduction as per PRO-MILL-012, Rev.01 dated 1 October 2014. As seen from the CPO mass bal-ance of the mill for end of year 2015, total sustainable production was 24,837.783 MT of CPO and 7,515.272 MT of PK, which is higher than certified tonnages claimed of 12,680 MT CPO and 3,222 PK re-




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spectively, this is because the company still included all production from smallholders into certified claimed which is actually should be excluded from certified.

All incoming FFB accompanied by delivery notes, information stated on the notes including palm oil mill address; delivery notes number; FFB truck police number; estate name; farmer name and quantity FFB supplied. Compliance status : Non Compliance

NCR No.2016-07 of 07 (Major non-conformity) Since January 2016, RSPO certification scope for PT Tania Selatan has exclude FFB from smallhoder scheme as certified source. However the material balance in Burnei Timur Mill for February and March 2016 still includes FFB from smallholder scheme as certified.

E5. Records Keeping

Findings:

The mill has maintains daily records and balances all receipts of RSPO certified FFB and deliveries of RSPO certified CPO & PK on a tri-monthly basis, as seen in the mill’s CPO Products Daily and Monthly Movement Summary Report and PK Products Daily and Monthly Movement Summary Report.

The material balance for CPO includes information about incoming FFB from the company’s certified es-tates, scheme smallholders and outgrowers, FFB Processed, CPO Production, % OER, calculation of non-sustainable and sustainable CPO production, total non-sustainable and sustainable CPO products despatched and remaining stock of non-sustainable and sustainable CPO products each month, which is balanced at the end of each quarter. All volumes of palm oil that are delivered are deducted from the ma-terial accounting system according to actual daily conversion ratios. The format for PK mass balance is similar, and includes instead data on PK Production, % KER, calculation of non-sustainable and sustain-able PK production, and total non-sustainable and sustainable PK products despatched and remaining stock of non-sustainable and sustainable PK products each month. The material balance can show deliv-ery of product sales from a positive stock. For example, stock balance of PK at the end of year 2015 was 229,802 MT; at end of March 2015 was 186,366 MT; at end of June 201 5 was 115,929 MT at end of September 201 5 was 133,245 MT and at end of December 2015 was 229,802. While for PK, stock bal-ance was 289,828 MT at end of March 2015; 1,103.520 MT at end of June 2015; 2,125,069 at end of September 2015 and 584,714 at end of December 2015.

Daily and Monthly data used in the mass balance summary sheets are derived from Daily Report printout automatically generated by the mill’s weighbridge system. Daily report for 31 December 2015 was sam-pled with the following data found:

• Total FFB received from Burnai Timur estate was 34,178,140 kg. This figure was verified and confirmed consistent with total of all FFB received at calculated manually from the weighbridge slip records for the estate on December 2015.

• Total FFB received from Burnai Barat estate was 19,410,780 kg. This figure was verified and con-firmed consistent with total of all FFB received at calculated manually from the weighbridge slip records for the estate on December 2015.

• Total FFB received from scheme smallholders (stated in Daily report as ‘other group’) was 48,906,845 kg

• Total FFB received from independent outgrowers was 97,158,192 kg

Data above was checked against the Daily CPO production record for December 2015 in the CPO mass balance sheet and confirmed to be consistent.

The mill does not sell Palm Kernel Oil (PKO), and all Palm Kernel (PK) and CPO product from Palm Oil Mill (POM) are sold only to PT Sinar Alam Permai – Palembang. There are no outsourced activities to an independent palm kernel crush. Compliance status : Full Compliance




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3.2 Status of Previously Identified Non-conformitie s During this 4th surveillance audit, a total of 5 nonconformances were identified against RSPO P&C, which con-sisted of 3 major non-conformities, and 2 minor non-conformities. There were no non-compliances raised against the RSPO Supply Chain Certification Requirements. For the major non-conformances, the company had taken the necessary corrective action to close these non-conformances within 60 days of completion of the assessment, and this was verified by the audit team through documents submitted by the company. For the minor non-conformances, the company has taken corrective action against these as well, and for those which could not be verified as closed through document checks, the closure of these minor non-conformities will be assessed during the next surveillance audit. A summary of all identified non-conformances, corrective actions taken and auditor conclusions is as below:

• RSPO P&C

IN 1.3.1: There shall be a written policy committin g to a code of ethical conduct and integrity in all operations and transactions, which shall be documen ted and communicated to all levels of the workforce and operations.

Non-conformance 2015-01 of 05 (Minor non-conformit y) The company does not have a written policy that contains a commitment to a code of integrity and ethical conduct in the entire implementation of operations and transactions, which is disseminated to all employ-ees.

Verification result during recertification audit:

The company has company policy about code of conduct on behalf Wilmar Group Indonesia with docu-ment number 044/DIR-KP/XII/2015 effective dated December 15, 2015. The policy consist of information about:

• The commitment and compliance to the implementation of corporate governance

• Prohibition against bribery, corruption and abuse of position

• Compliance to the regulation and the laws

The company has not conduct socialization to all levels of employees and third parties relating to the op-erations of PT Tania Selatan

Status: Escalation from Minor to Major

IN 2.1.1: Evidence of compliance with relevant lega l requirements shall be available.

Non-conformance 2015-02 of 05 (Major non-conformit y) The company has not had a Plantation Business Permit (‘Izin Usaha Perkebunan’ or IUP) related to the addition of the new concession in East Burnai for an area of 366.31 ha, where the current Plantation Business Registration Document (‘Surat Pendaftaran Usaha Perkebunan’ or SPUP) is for an area of 4205.68 hectares of Burnai Timur estate and Bambu Kuning estate.

Verification result during recertification audit: The company has submitted evidence that the IUP document is not required for this area of 366.31ha, i.e. Decree of the Minister of Agriculture No. 258/Kpts/KB.320/4/90 on 11 April 1990 concerning the PIR-Trans Project Implementation Plan oil palm in representatives areas of Lempuing and the Tanjung Lubuk, Regency of Ogan Komering Ilir, Province South Sumatra. This area is included within the company’s PIR-




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Trans project (part of the Indonesian government’s initative to ensure oil palm companies assist local farmers) and under Indonesian regulations is hence not required to have its own IUP. Auditor Conclusions: Closed

IN 4.7.3: All workers involved in the operation sha ll be adequately trained in safe working practices (see Criterion 4.8). Adequate and appropriate prote ctive equipment shall be available to all workers at the place of work to cover all potentially hazar dous operations, such as pesticide application, machine operations, and land preparation, harvestin g and, if it is used, burning.

Non-conformance 2015-03 of 05 (Major non-conformit y)

1. It was observed that contracted workers carrying out construction work for the mill’s new methane capture plant were not wearing appropriate PPE, i.e. most had no safety helmet, some were seen wearing slippers, and one worker was observed climbing to tall height and squatting on a beam without any form of safety equipment. Even though the contractor’s work agreement state require-ments to comply with safety requirements, implementation is not adequately monitored by the company with appropriate action taken against contractors that do not comply.

2. At Burnai Barat and Timur Estates, it was found harvesters were not wearing safety eyewear and gloves as required by the PPE Matrix dated 01/10/14 and harvesting procedure (SOP-EST-016 (Harvesting) Revision 05 due to fog.

Verification result during recertification audit: 1. There are no contract workers carrying out construction work for mill’s methane capture plant any-

more during recertification audit. 2. Based on the observation to Spraying process at Burnai Timur dated March 15, 2016, there is evi-

dence that the all operators was provided PPE appropriately such as Apron, Safety Googles, Masker, Glove, and Safety Booth. And, interviewed results with operators was evidenced that all PPE provided by the company.

Auditor Conclusions: Closed

IN 4.7.5: Accident and emergency procedures shall e xist and instructions shall be clearly under-stood by all workers. Accident procedures shall be available in the appropriate language of the workforce. Assigned operatives trained in First Aid should be present in both field and other oper-ations, and first aid equipment shall be available at worksites. Records of all accidents shall be kept and periodically reviewed.

Non-conformance 2015-04 of 05 (Minor non-conformit y) At Burnai Timur Estate and Mill the instruction of the Emergency Response Procedure (PRO-GEN-014) Revision 05 not followed properly as sampled fire extinguishers at chemical store, hazardous waste store, workshop and office (Estate) expired on 11/03/15 and workshop and office type CO2 (Mill) expired on 10/03/15 and 11/05/15. A letter and email to request for reinspection were only raised in March 2015.

Verification result during recertification audit: During this recertification audit was observed to some areas/locations, i.e.: Burnai Timur: Chemical Store, Fertilizer Store, Genset House, G-10 Housing, office and Temporary Haz-ardous Waste Store, was found that the Fire Extinguisher expire dated still valid until June 30, 2016. Auditor Conclusions: Closed

IN 5.3.2: All chemicals and their containers shall be disposed of responsibly.

Non-conformance 2015-05 of 05 (Major non-conformit y)




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As seen in the warehouse bin card, for Glisat chemical usage at Burnai barat estate, a total of 8 chemical containers were stated as delivered to the mill on 28 February 2015. However, both the mill and estate did not have any record of delivery note of the 8 Glisat chemical containers. There is also no evidence of storage of Glisat or other herbiside chemical containers at the POM even though there has been no col-lection by the contractor since November 2014.

Verification result during recertification audit: There is evidence that the hazardous waste including ex chemical containers has been collected by Con-tractor. Based on the Official Report No. 081/PKS-BT/III/2016, dated March 12, 2016, some of hazardous waste has been picked up by Contractor (PT Dame Alam Sejahtera), including amount of 1,095 kg of ex-chemical containers. Auditor Conclusions: Closed

3.3 Identified Non-conformances, Corrective Actions Taken and Auditors Conclusions A total of 7 nonconformances were identified during the recertification assessment. These consisted of 3 major non-conformities and 4 minor non-conformities. For the major non-conformances, the company has taken the necessary corrective action to close these non-conformances within 60 days of completion of the recertification audit. For the minor non-conformances, the company has taken corrective action against these as well; the clo-sure of these minor non-conformities will be assessed during the next surveillance audit. A summary of all identi-fied non-conformances, corrective actions taken and auditor conclusions is as below:

Criterion 1.3.1: There shall be a written policy co mmitting to a code of ethical conduct and integrity in all operations and transactions, which shall be documented and communicated to all levels of the workforce and operations. Non-conformance : RSPO00110 (Major non-conformity) The company has a policy about code of conduct on behalf of Wilmar Group Indonesia with the document number 044/DIR-KP/XII/2015 valid dated December 15, 2015 but not yet socialized to all levels of em-ployees and third parties relating to the operations of PT Tania Selatan Correction: To provide understanding for all PICs that conducted dissemination on how to make records and re-socialization to all employees and third parties. By: PGA Estate and Mill Corrective Action: Make recording and documenting result with good socialization. Auditor Conclusions: Closed Date of Closure : April 15, 2016 Verification result: The company has provide evidence of improvement such as:

• Minutes of socialization of company code of conduct to Burnai Timur employees that was conduct on 29 until 31 March 2016 which equipped with photo of documentation and attendant list of par-ticipant

• Minutes of socialization of company code of conduct to third party (contractor) that was conduct on 19 March 2016 which equipped with photo of documentation and attendant list of participant

Criterion 2.3.1: Maps of an appropriate scale showi ng the extent of recognised legal, customary or user rights (Criteria 2.2, 7.5 and 7.6) shall be de veloped through participatory mapping involving af-fected parties (including neighbouring communities where applicable, and relevant authorities).




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Non-conformance : RSPO00111 (Major non-conformity) There are two community land inside company’s HGU area in block 113, however no record of negotiation process or agreement that the community allowed to use those land as farming area. Correction: Given a map which has been revised to the auditors that indicating land enclaved at block 113. Therefore, there is no need another statement fromthe people who cultivate in the company's land. Land used by the community is the land that has been in enclaved by BPN to the public. Corrective Action: The Company does not have rights over that land and will not cultivated the land outside company’s HGU or licensed area. (By: Bina Mitra, Community Dev Officer) Date of Closure : April 15, 2016 Auditor Conclusions: Closed with observation Verification result: The company provide revised map that already reviewed by head of GIS department and provide evi-dence about compensation payment for the 10 ha area between two enclave locations. This is to prove that oil palm plantation between enclaved area has been included on the company’s area. It was ex-plained that company no more responsible to get another HGU from that land which is enclaved inside HGU area. However that information must be clarified to the relevant institution for next surveillance audit.

Criterion 4.1.2: A mechanism to check consistent im plementation of procedures shall be in place.

Non-conformance : RSPO00112 (Minor non-conformity)

The company has conducted internal audits periodically but have not completed the form required to con-duct internal audits, such as internal audit check sheet (FRM-Gen-004 revision 1 effective date April 20,2011), the report form non-conformity (FRM-GEN-005 revision 04, the effective date April 20, 2011), form the audit report (FRM-Gen-012 revision 01 effective date April 20, 2011) as set out in the internal au-dit procedures (Pro-Gen-003 revision 03 effective date March 1, 2007, the date of the revised October 1, 2014 ) Correction: Conduct training on how to use internal audit form. Corrective Action: Ensure that all internal auditors have been equipped with all relevant internal audit formats (By: Document Controller) Date of Closure : April 15, 2016 Auditor Conclusions: Corrective action plan accepte d. Effectiveness of implementation to be veri-fied during next audit

Criterion 4.7.5: Accident and emergency procedures shall exist and instructions shall be clearly understood by all workers. Accident procedures shal l be available in the appropriate language of the workforce. Assigned operatives trained in First Aid should be present in both field and other operations, and first aid equipment shall be availa ble at worksites. Records of all accidents shall be kept and periodically reviewed. Non-conformance : RSPO00113 (Minor non-conformity) It was observed most of HCV areas in Burnai Barat estate were burned during dry season In year 2015. There is no investigation the cause of fire and recorded properly to be considered for correction and cor-rective action. HCV burned in Block 30 was not recorded on PoL8/D-04/IX/2015/SPK Sek TG Lubuk. Also




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not consistent with SOP PRO-GEN-014 rev. 05 Correction: To make reports investigation of all fires that occurred in 2015. Corrective Action: To ensure HCV officer making the investigation report on any incidents of fire (By: HCV Officer) Date of Closure : April 15, 2016 Auditor Conclusions: Corrective action plan accepte d. Effectiveness of implementation to be veri-fied during next audit

Criterion 5.2.4: Where a management plan has been created there shal l be ongoing monitoring: The status of HCV and RTE species that are affected by plantation or mill operations shall be doc-umented and reported; Outcomes of monitoring shall be fed back into the management plan. Non-conformance : RSPO00110 (Minor non-conformity) Monitoring of the existence of Flora and Fauna as observed on “Berita Acara Pendataan Jenis Fauna and Flora in Burnai Barat Estate dated November 14, 2015, It was sight on the report were 21 Aves types; 7 mamals found surrounding on company’s area not only in HCV area, and 2 identified flora however moni-toring result still not infrm about the status of HCV and RTE that affected by plantation activities to be consider for development of company’s management plan. Correction:

• To conduct and improve knowledge regarding the status of the protection of flora & fauna to HCV officers in accordance with the information in the document HCV assessment.

• Completing the protection status of flora and fauna is found in the area of monitoring of HCV in 2015

Corrective Action: To ensure that in any reporting of HCV monitoring results, always inform about the status for protection of flora and fauna that is found (By: HCV Officer) Date of Closure : April 15, 2016 Auditor Conclusions: Corrective action plan accepte d. Effectiveness of implementation to be veri-fied during next audit

Criterion 5.2.5: Where HCV set-asides with existing rights of local communities have been identi-fied, there shall be evidence of a negotiated agree ment that optimally safeguards both the HCVs and these rights. Non-conformance : RSPO00110 (Minor non-conformity) It was sight HCV locations were identified side a side with community area such as HCV at bloc 02; block 015; block 014 and block 13. However there is no evidence of negotiated agreement that optimally safe-guards both the HCVs and community land. Correction: To provide understanding for HCV staff regarding protection and maintenance aspects required by RSPO. Make agreement between the company and the land owners regarding the maintenance of HCV areas that is adjacent to the public land. Corrective Action: To ensure that maintenance aspects executed by both parties in accordance with the agreement. (By: HCV Officer South Tania) Date of Closure : April 15, 2016




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Auditor Conclusions: Corrective action plan accepte d. Effectiveness of implementation to be veri-fied during next audit

Criterion E.4 Purchasing and good in

Non-conformance : RSPO-SCCS 00110 ( Major) Since January 2016, RSPO certification scope for PT Tania Selatan has exclude FFB from smallhoder scheme as certified source. However the material balance in Burnei Timur Mill for February and March 2016 still includes FFB from smallholder scheme as certified. Correction: Coordinate with Head Office staff to improve mass balance document Tania Selatan mill to exclude FFB from smallholders from sustainable status becomes non-sustainable (starting January 2016) Corrective Action: To ensure the coordination between mill logistics staff with Head Office Jakarta regarding update status sustainable product development. Date of Closure : April 15, 2016 Auditor Conclusions: Closed Verification result: The company provide revised mass balance document that has been exclude FFB from smallholders be-come non sustainable status.

3.4. Noteworthy Positive Components 1. Company has Methane capture project to minimized GHG Emission.

2. Company has out grower’s distribution mapping including information about GIS position.

3. Program supplier evaluation until supplier premises.

4. Good Riparian condition.

3.5 Issues Raised by Stakeholders and Findings Pert aining to Issues A) Issues Raised during Stakeholder Consultation Me eting

No. Issues Raised Management Response Audit Verification

1 • Lempuing river water contaminated the waste of mill which applied to the land that comes from Block 29

• Noise of mill is very strong that dis-turbing the village

Land application is not flow through the block 29. Land application only flow through the block 9A, 10B, 10C, 10D, 11A, 11B, 11C, 11D. And the distance between the block 29 to block land application

Company explaination is accepted, will be verified on the next audit.




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so far. While the land drain-age system application is very tightly controlled by es-tate personnel. In first semester, dated June 10, 2015, the Company completed a noise test in Dusun I, Desa Purwo Asri and test results show that the maximum levels below 50.8, while according PER.GUB.55 No. 17/2005, the maximum level is 55 In second semester, dated December 09, 2015, the Company completed a noise test in Dusun I, Desa Purwo Asri and test results show that the maximum levels be-low 44.8, while according PER.GUB.55 No. 17/2005, the maximum level is 55

2 The company has been doing CSR to the community is well

PT.Tania Selatan as one of the big company of plantation that cares and have a commitment to helping enhance the economy of local communities with good CSR programs that have been programmed and ongoing or proposed by the community according to the conditions and needs of the village, as much as possible to give the best to the local community around the company in accordance with company policy. Programs such as road maintenance, local community economic empowerment, assistance in education and places of worship continued.

No need to be verified.

3 • The company conduct good develop-ment to the village so that the village infrastructure can be developed such as roads, education

• The local community's economy is getting better

• At a time when society comes, the palm oil plant has been available

• Diharapkan penanganan terkait dengan proposal dana CSR untuk desa direspon dengan cepat

The concern of company's to business partners related the facilities and infrastructure of village nor the location of smallholder to smooth of dai-ly activities and the local community economy remains a program and the Compa-ny's commitments. Futher, the company will in-





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• It is hoped about handling of the vil-lage CSR funding proposals respond-ed to quickly

crease response and better handling of the villages sur-rounding the company in ac-cordance with program / poli-cy of the company

4 • The community were employed • Assistance to the village is provided

such as a free treatment, build a fence of junior high school and the art of village

• It is hoped the construction of the vil-lage gateway can be realized in 2016

The company will recruit local labor in around the village and if there are job vacan-cies, the company will deliv-er/inform to the village in ac-cordance with the classifica-tion and the company needs The company program to the around village included Mulya Guna village will be continues and increasing The company is always ready to participate in enhancing the development of the vil-lage according to the ability and policies.


5 • Cooperation between the company and the police running well

• Police helped by the loaning equip-ment unit for the construction of police station

A harmonious relationship has been established with the police Teluk Gelam both per-sonally and institutional PT. Tania Selatan still trying to participate actively in help-ing the police about in terms of prepare of infrastructure for the police station in order to create sense of comfortable and safe for the police station and the surrounding commu-nity.


6 • The company is very assist in labor absorption

• The company compliance to fulfill the legal

Commitment of the compa-nies as one of the company that has large employee ab-sorption in the plantation sec-tor, especially local communi-ties as well as educational and direct the workforce to working well. Company has a commitment for compliance and obedient to the the applicable Laws. It is applicable for all neither management nor procedure in the Operating Company.


7 The village expects that employment from the surrounding villages more enhanced

PT.Tania Selatan accordance with its Policy will continue to provide information, transpar-ency and prioritizing commu-nities around the village to be recruited as an employee of the Company in accordance with the needs and standards





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/ desired level of the Compa-ny.

8

• Environmental management and re-porting quite good

• Permissions for methane capture still in progress

• The company has cooperated with the vendor for the collection of hazardous and toxic waste

• Perusahaan agar meningkatkan kajian land application apabila ada perubahan luas atau perubahan blok kajian

• The company order to increasing land application assessment if there is changes such as extensive or change of block study

Companies always provide timely reporting in accord-ance with existing regulation In the case of the new Li-censing (methane capture) the process is currently run-ning and will be pushed to the relevant agencies. Company co-operation with the the collection vendors will continue throughout has an official permission and valid. The Company will monitor and make efforts to increase the effectiveness of land ap-plications management to the location of the area and will consider adding a location where appropriate with actual conditions in the field.


9 • Development of plasma from 1997 improve the community economy

• It is hoped to improving the quality of human resources to manage the co-operative

The company continues to establish harmonious part-nerships with the plasma Gardens. Development pat-terns on farmers of Plasma / Cooperative still monitored by the Plasma Assistant for improved operational man-agement and cooperative Today, with the young work-ers with the highly education are took position in several cooperative, the company still monitoring and coaching to cooperative with the sen-ior officials of cooperatives to improve knowledge about the management of coopera-tives and plantation man-agement with their training or socialization to the farmer.


10 • Aspects of security is conducive • Coordination in the security section is

quite good • Satpam yang bertugas masih ada yang

belum memiliki pelatihan dasar Satpam • Security guards in charge still do not

have basic training security guard • Social action need to increase for poor

communities

The company still establishes good relations and coordina-tion with the police, especially Tanjung Lubuk police station where police personnel are also involved in helping to create a sense of safe securi-ty and convenient for employ-ees of the company and the community around the estate. Improvement of competence





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security guard is an important concern for companies, espe-cially some of the security guard who do not have basic training guard gradually con-tinue to do well in the corpo-rate environment by inviting trainer who are competent or from external (for 2016 has been carried out in early March 2016 of basic educa-tion in PPLK Burnai Timur and the planned April week 2 se-curity guard training for a cer-tificate Garda Pratama in Bo-gor, followed by security guards who have followed the basic training security guard). The company with CSR pro-grams and urgent proposals because of natural conditions continued extreme, the com-pany tried to attend to provide assistance for the poor com-munities as it is done with de-velopment of Post of Public Health, provide clean water, improved roads and the future will be increased for economic development economic crea-tively to community

3.5 Acknowledgements of Internal Responsibility and Formal Sign-Off by Client

It is acknowledged that the assessment visit was carried out as described in this report and we accept the as-sessment findings and report content.

Signed on behalf of PT Tania Selatan …………………………………………. (Management Representative) [Position] Date:

Signed on behalf of PT TUV Rheinland Indonesia Naik Monang Parlindungan Lingga & Dian S Soeminta Lead Auditor Date:




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APPENDICES

Appendix 1: Details of Certificate




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Appendix 2: Recertification Audit Plan

Date / Time

(1) Organizational Unit and Processes

Auditor / Abbrev.

Interviewee Procedure - EM/QM Element -

Standard Chapter

Monday, 14 March 2016

05.25-06.35 Traveling Jakarta to Palembang All auditors By GA 100

06.35-12.00 Palembang to site

12.00-13.00 Break and lunch All auditors 13.00-14.00 • Opening Meeting

• Introduction by team leader. • Presentation of estates by

respective managers • Presentation of Oil Mills • Source of FFB by respective

managers

All auditors Auditors and manager

14.00-18.00 Mill

Verification to document & field : • Transparency & ethical conduct

• Conservation and biodiversity • GHG calculation

• SCCS • Continual improvement

DSS Respective manager

RSPO Principle 1 (Indicator 1.1.1 to 1.1.2; 1.2.1; 1.3.1) Principle 5 (Indicator 5.6.1 to 5.6.3) Principle 8

14.00-18.00 Mill

Verification to document & field :

• OSH • Training

• Environmental • Waste

• Efficiency of energy • Continual improvement

WHY Respective manager

RSPO Principle 4 (Indicator 4.4.3 to 4.4.4; 4.7.1 to 4.7.7; 4.8.1 to 4.8.2) Principle 5(Indicator 5.1.1 to 5.1.3; 5.3.1 to 5.3.3; 5.4.1) Principle 8

14.00-18.00 Mill

Verification to document & field : • Operation procedure

• Environment issue • Continual improvement

NM Respective manager

RSPO Principle 4 (Indicator 4.1.1 to 4.1.4) Principle 8

14.00-18.00 Mill


• Management plan • Worker and social

• Continual improvement

DO Respective manager

RSPO Principle 3 (Indicator 3.1.1 to 3.1.2) Principle 6 (Indicator 6.1.1 to 6.1.5; 6.2.1 to 6.2.3; 6.3.1 to 6.3.2; 6.4.1 to 6.4.3; 6.5.1 to 6.5.4; 6.6.1 to 6.6.2; 6.7.1; 6.8.1 to 6.8.3; 6.9.1 to 6.9.3; 6.10.1 to 6.10.4; 6.11.1 to 6.11.2; 6.12.1 to 6.12.3; 6.13.1) Principle 8

Tuesday, 15 March 2016 08.00-12.00

Burnai Timur Estate


• Compliance with laws and reg-ulations

• Management plan & replanting plan (if any)

• OSH


RSPO Principle 2 (Indicator 2.1) Principle 4 (Indicator 4.4.1 to 4.4.2; 4.7.1 to 4.7.7; 4.8.1 to 4.8.2) Principle 5(Indicator 5.1.1 to 5.1.3; 5.3.1 to 5.3.3; 5.4.1)




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Date / Time


Auditor / Abbrev.


Standard Chapter

• Training

• Environmental • Waste

• Efficiency of energy • New Planting (if any)


Principle 7(Indicator 7.1.1 to 7.1.3) Principle 8

08.00-12.00 Burnai

Timur Estate


• Operation procedure • Best Agriculture Practice

• Environment issue • Zero burning

• New planting (if any) • Continual improvement

DSS & NM Respective manager

RSPO Principle 4 (Indicator 4.1.1 to 4.1.4; 4.2.1 to 4.2.4; 4.3.1 to 4.3.6; 4.5.1 to 4.5.2; 4.6.1 to 4.6.12) Principle 7 (Indicator 7.2.1 to 7.2.2; 7.4.1 to 7.4.2; 7.7.1 to 7.7.2) Principle 8

08.00-12.00 Burnai

Timur Estate

Verification to document & field : • Land conflict & use of the land

• Management plan • Worker and social

• New planting (if any) • Continual improvement


RSPO Principle 2 (Indicator 2.2.3 to 2.2.6 and 2.3.1 to 2.3.4) Principle 3 (Indicator 3.1.1 to 3.1.2) Principle 6 (Indicator 6.1.1 to 6.1.5; 6.2.1 to 6.2.3; 6.3.1 to 6.3.2; 6.4.1 to 6.4.3; 6.5.1 to 6.5.4; 6.6.1 to 6.6.2; 6.7.1; 6.8.1 to 6.8.3; 6.9.1 to 6.9.3; 6.10.1 to 6.10.4; 6.11.1 to 6.11.2; 6.12.1 to 6.12.3; 6.13.1) Principle 7 (Indicator 7.1.1 to 7.1.2; 7.5.1; 7.6.1 to 7.6.6) Principle 8

12.00-13.30 Break and Lunch All Auditor 13.30-17.00 Continue morning agenda All Auditor

End of 2 nd day audit

Wednesday, 16 March 2016 08.00-10.00 Stakeholder consultation preparation All Auditor

10.00-12.00 Stakeholder consultation All Auditor 12.00-13.30 Break and Lunch All Auditor

13.30-17.00 Burnai

Barat Estate

Verification to document & field : • Partial certification, timebound

plan

• Transparency & ethical con-duct

• Compliance with laws and reg-ulation

• Legal land


• Environmental • Conservation and biodiversity

• Waste

NM & DSS Respective manager

RSPO Principle 1 (Indicator 1.1.1 to 1.1.2; 1.2.1; 1.3.1) Principle 2 (Indicator 2.1.1 to 2.1.4; 2.2.1 to 2.2.2) Principle 4 (Indicator 4.4.1 to 4.4.2; 4.7.1 to 4.7.7; 4.8.1 to 4.8.2) Principle 5 (Indicator 5.1.1 to 5.1.3; 5.2.1 to 5.2.5; 5.3.1 to 5.5.5; 5.4.1; 5.6.1 to 5.6.3) Principle 7 (Indicator 7.1.1 to 7.1.2; 7.3.1 to 7.3.5; 7.7.1 to 7.7.2)




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Date / Time


Auditor / Abbrev.


Standard Chapter

• Efficiency energy

• GHG Calculation • New planting (if any)


Principle 8

13.30-17.00 Burnai

Barat Estate


• Partial certification, timebound plan

• Transparency & ethical con-duct

• Compliance with laws and reg-ulation

• Legal land


• Environmental • Conservation and biodiversity

• Waste • Efficiency energy

• GHG Calculation • New planting (if any)



Principle 4 (Indicator 4.1.1 to 4.1.4; 4.2.1 to 4.2.4; 4.3.1 to 4.3.6; 4.5.1 to 4.5.2; 4.6.1 to 4.6.12) Principle 5 (Indicator 5.5.1 to 5.5.2) Principle 7 (Indicator 7.2.1 to 7.2.2; 7.4.1 to 7.4.2; 7.7.1 to 7.7.2) Principle 8

13.30-17.00 Burnai

Barat Estate


• Land conflict & use of the land • Management plan

• Worker and social • New planting (if any)



RSPO Principle 2 (Indicator 2.2.3 to 2.2.6 and 2.3.1 to 2.3.4) Principle 3 (Indicator 3.1.1 to 3.1.2) Principle 6 (Indicator 6.1.1 to 6.1.5; 6.2.1 to 6.2.3; 6.3.1 to 6.3.2; 6.4.1 to 6.4.3; 6.5.1 to 6.5.4; 6.6.1 to 6.6.2; 6.7.1; 6.8.1 to 6.8.3; 6.9.1 to 6.9.3; 6.10.1 to 6.10.4; 6.11.1 to 6.11.2; 6.12.1 to 6.12.3; 6.13.1) Principle 7 (Indicator 7.1.1 to 7.1.2; 7.5.1; 7.6.1 to 7.6.6) Principle 8

End of 3 rd day audit

Thursday, 17 March 2016 13.30-17.00

Burnai Barat Estate

Verification to document & field : • Compliance with laws and reg-

ulation

• Management plan & replanting plan (if any)

• OSH

• Training • Environmental

• Conservation and biodiversity • Waste

• Efficiency energy • New planting (if any)


Principle 2 (Indicator 2.1) Principle 4 (Indicator 4.4.1 to 4.4.2; 4.7.1 to 4.7.7; 4.8.1 to 4.8.2) Principle 5 (Indicator 5.1.1 to 5.1.3; 5.3.1 to 5.3.3, 5.4.1) Principle 7 (Indicator 7.1.1 to 7.1.3) Principle 8




Page 71 of 73


Date / Time


Auditor / Abbrev.


Standard Chapter


13.30-17.00 Burnai

Barat Estate

Verification to document & field : • Operation procedure

• Best Agriculture Practice • Environment issue

• Zero burning • New planting (if any)


NM & DSS Respective manager

RSPO Principle 4 (Indicator 4.1.1 to 4.1.4; 4.2.1 to 4.2.4; 4.3.1 to 4.3.6; 4.5.1 to 4.5.2; 4.6.1 to 4.6.12) Principle 5 (Indicator 5.5.1 to 5.5.2) Principle 7 (Indicator 7.2.1 to 7.2.2; 7.4.1 to 7.4.2; 7.7.1 to 7.7.2) Principle 8

13.30-17.00 Burnai

Barat Estate

Verification to document & field : • Land conflict & use of the land

• Management plan

• Worker and social • New planting (if any)



Principle 2 (Indicator 2.2.3 to 2.2.6 and 2.3.1 to 2.3.4) Principle 3 (Indicator 3.1.1 to 3.1.2) Principle 6 (Indicator 6.1.1 to 6.1.5; 6.2.1 to 6.2.3; 6.3.1 to 6.3.2; 6.4.1 to 6.4.3; 6.5.1 to 6.5.4; 6.6.1 to 6.6.2; 6.7.1; 6.8.1 to 6.8.3; 6.9.1 to 6.9.3; 6.10.1 to 6.10.4; 6.11.1 to 6.11.2; 6.12.1 to 6.12.3; 6.13.1) Principle 7 (Indicator 7.1.1 to 7.1.2; 7.5.1; 7.6.1 to 7.6.6) Principle 8

12.00-13.30 Break and Lunch All Auditor

13.30-15.00 Preparation for closing meeting & closing meeting

All Auditor Plantation/estate manager

15.00-19.00 Traveling to Palembang All Auditor

End of 4 rd day audit

Friday, 18 March 2016 09.30-10.40 Flight to Jakarta All auditors GA 107

Appendix 3: List of Abbreviations AMDAL Analisis Dampak Lingkungan & Sosial (Social & Environmental Impacts Assessment) CPO Crude Palm Oil EIA Environmental Impact Assessment ERTs Endangered, Rare & Threatened species ESH Environmental Safety & Health FFB Fresh Fruit Bunches EFB Empty Fruit Bunches HCV High Conservation Value IPM Integrated Pest Management LTA Lost Time Accident MSDS Material Safety Data Sheets NGO Non-Government Organization OSH Occupational Safety & Health




Page 72 of 73


PKO Palm Kernel Oil POME Palm Oil Mill Effluent PPE Personal Protective Equipment RKL Rencana Pengelolaan Lingkungan (Environmental Management Plan) RPL Rencana Pemantauan Lingkungan (Environmental Monitoring Plan) SIA Social Impact Assessment SOP Standard Operating Procedure UKL Upaya Pengelolaan Lingkungan (Environmental Management Efforts) UPL Upaya Pengelolaan Lingkungan (Environmental Management Efforts)

Appendix 4: List of Stakeholders Interviewed and Co ntacted

No. Name of Stakeholder

Institution / Position Remarks

Stakeholders Interviewed during Public Consultation Meeting 1 Rosidan Plantation Agency OKI 2 Tatang Environmental Agency OKI 3 Edi Warsyah Forestry Agency OKI 4 Manik Ginting Land Agency OKI 5 Udin Teluk Gelam Sector Police 6 Rama Yudha Lempuing Jaya Sector Police 7 Dodi Riestanto Subdistrict Head of Lempuing Jaya 8 Denin Subdistrict Head of Mesuji Raya 9 Aan Sugianto Burnai Timur Village

10 Pirdaus Muara Burnai I village 11 Alman Purwo Sari village 12 M. Habib Ansori Bumi Harapan village 13 Indro Sinar Harapan Mulya village 14 Mukhlis Mulya Guna village 15 Abu Bakar Tanjung Baru village 16 Poniran Bumi Jaya Cooperative 17 Asep Uloh Patwa Usaha Mandiri Cooperative 18 Solihin Tunggal Mulya Cooperative 19 Susan Sinar Sawit Bahagia Cooperative 20 Sri Yunida Kayu Agung Hospital 21 Elly FFB Supplier 22 Rudi Siregar FFB Supplier

Stakeholders Interviewed during on site 1 M. Sidik Cooperative secretary 2 Warsito Head section of Purwo Asri Village 3 Aan Sugianto Head Village of Burnai timur Village 4 Uus Sudarmadi EHS & Sustainibility 5 Ikhsan Ishak Burnai Barat Estate 6 Heru ST Mill Manager Tania Selatan 7 Ujang Alamsyah EHS Unit 8 Herry S Sipayung Field Officer Burnai Timur 9 Suwardi Field Officer Burnai Timur

10 Sukarmin HCV Burnai Timur 11 Sudariyanto EHS 12 Parlindungan HR 13 Sanya Nurse 14 Leni Marlina Document Control Mill 15 Sunardi Community Development 16 Amir Hamzah KTU Mill




Page 73 of 73


17 Dhore Elfira Document Control Estate 18 Mulyadi Bina Mitra 19 Agus Eko Staff R&D 20 Monica Spraying foreman Burnai Barat Estate 21 Alvis Sprayer Burnai Barat Estate 22 Aisyah Sprayer Burnai Barat Estate 23 Masnun Sprayer Burnai Barat Estate 24 Nurhayati Sprayer Burnai Barat Estate 25 Alim Hasan Sprayer Burnai Barat Estate 26 Arbaim Harvesting foreman Burnai Barat Estate 27 Hamdan Harvester Burnai Barat Estate 28 Syahrizal Workshop employee 29 Tentrem Santoso Welder 30 Widarto Spraying foreman Burnai Timur Estate 31 Darmi Sprayer Burnai Timur Estate 32 Robiatun Sprayer Burnai Timur Estate 33 Sumiati Sprayer Burnai Timur Estate 34 Kateni Sprayer Burnai Timur Estate 35 Junaidi Sprayer Burnai Timur Estate 36 Riati Sinaga Sprayer Burnai Timur Estate 37 Sukriadi EFB Foreman Burnai Timur Estate

Appendix 5: Observations and Opportunities for Impr ovement

No. Observations / Opportunities for Improvement Crit eria

1 Some FFB transport document can not be traced until the FFB sourced. No proper checking for security or incoming FFB checker.

2 BPN stone no 19 broken and difficult to find.

3 Pro Gen 14 should be evaluated after land burned especially for HCV area.

4 HCV document should be reviewed after some HCV areas were burned. Including review of HCV management plan.

5 There are found two unplanted area in HCV area in Burnai Barat showed on the map. HCV area cannot be opened according RSPO P & C 7.3

6 The Company calculate the number of workers with empty bunch that will be ap-plied in the field and how to arrange the empty bunch

7 • Observation in Burnai Barat Estate, Poison Storage, dated March 15, 2016, found danger signs symbols is not clear because wear off

• Observation to TPS LB3, at Tania Selatan Mill, dated March 17, 2016, emer-gency eyes shower design not appropriate (water position pointing downwards)

• Observation to spraying activities in the Burnai Barat Estate, Block 025, dated March 15, 2016, the car has been equipped with clean water tank, but the tap to open the clean water is not available (was broken).

• Companies should complete the contents of the first aid box according to Permenaker P3K 15/2008 (loading ramp, spraying, harvest)

• Companies should complete the fire extinguishers, back alarm and rearview mirror for the loader at the mill

8 Companies need to ensure that can doing overtime at most three (3) hours in one (1) day and 14 (fourteen) hours in one (1) week.

Documents

Roundtable on Sustainable Palm Oil - TÜV Rheinland...The company follows a replanting cycle of 25 years. Information on the dates of plantings is as per the table below. Table 4: