PT Murini Sam-Sam

Transcription

PT Murini Sam-Sam

Roundtable on Sustainable Palm Oil
Public Summary Report
Report no.: 82450216035
Certification assessment against the
RSPO Principles & Criteria 2013 (Generic) and
RSPO Supply Chain Certification Standard 2014
PT Murini Sam-Sam
(Subsidiary of Wilmar International Group)
Bengkalis, Riau, Indonesia
Date of assessment: 3 – 6 November 2015
Report prepared by:
Carol Ng Siew Theng
(RSPO Lead Auditor)
Certification decision by:
Abdul Qohar
(Director of PT 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
1.2 Type and Scope of Assessment
1.3 Location and Maps
1.4 Description of Supply Base
1.5 Dates of Plantings and Replanting Cycles
1.6 Other Achievements and Certifications Held
1.7 Area of Plantation (Total, Planted and Mature)
1.8 Organisational Information / Contact Person
1.9 Description of Company History, Socioeconomy & Environment
1.10 Time Bound Plan for Other Management Units
1.11 Compliance to Rules for Partial Certification
1.12 Plan for certification of associated smallholders
1.13 Approximate Tonnages Certified
1.14 Recommendation for Certification
1.15 Date of Certificate Issued and Scope of Certificate
3
3
3
4
7
7
8
8
8
10
11
13
13
13
13
2.0 ASSESSMENT PROCESS
14
2.1 Certification Body
2.2 Qualifications of Lead Assessor and Assessment Team
2.3 Assessment Methodology
2.4 Stakeholder Consultation and Stakeholders Contacted
2.5 Date of Next Surveillance Visit
14
14
15
16
17
3.0 ASSESSMENT FINDINGS
17
3.1 Summary of Findings
3.2 Identified Non-conformances, Corrective Actions Taken and Auditors Conclusions
3.3 Noteworthy Positive Components
3.4 Issues Raised by Stakeholders and Findings Pertaining to Issues
3.5 Acknowledgements of Internal Responsibility and Formal Sign-Off by Client
17
50
51
51
56
APPENDICES
57
Appendix 1: Details of Certificate
Appendix 2: Certification Audit Plan
Appendix 3: List of Abbreviations
Appendix 4: List of Stakeholders Interviewed and Contacted
Appendix 5: Observations and Opportunities for Improvement
57
59
63
64
65
RSPO Certification Assessment Report
PT Murini Sam-Sam (Wilmar International Group)
Page 3 of 66
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 generic RSPO Principles & Criteria (P&C) year 2013 and the RSPO Supply Chain Certification Standard (SCCS) year 2014. The
company has opted to be certified against SCCS requirements Module E for CPO Mills: Mass Balance.
1.2 Type and Scope of Assessment
The main certification assessment was carried out on 1 mill and 1 estate under PT Murini Sam-Sam (PT MSS),
which is a subsidiary of Wilmar International Group.
Although the Estate Business Permit (‘Izin Usaha PerEstatean’ or IUP) of the estate dated 14 August 2004 has
been approved for 1233.13 ha, the company has yet to receive the approved HGU for 466 ha of area planted in
year 1991 due to ongoing planning process of Provincial Spatial Plan (Rencana Tata Ruang Wilayah Propinsi –
RTRWP) area by the local authorities. Hence, this 466 ha (henceforth referred to as the ‘non-HGU’ area) will
not be included in the scope of certification until the HGU of this area has been approved and the company has
applied for the new IUP and new Environmental Management/Monitoring Efforts documents (‘Usaha Pengelolaan Lingkungan/ Usaha Pemantauan Lingkungan’ or UPL/UKL) for this area. The current estate area included in the certification scope is 967 ha. Further details are as described under Section 1.9 of this report.
1.3 Location and Maps
Table 1: GPS locations for all estates and mills included in certification assessment
Name
of mill /
estate
PT Murini Sam
Sam Palm Oil
Mill
PT Murini Sam
Sam Estate
Location
GPS locations
Latitude
Longitude
Pangkalan Libut Village, Pinggir Sub-district, Bengkalis District, Riau Province, Indonesia.
1°3'37.27"
Jl. Lintas Pekanbaru-Duri, KM 92.8, Pangkalan Libut
Village, Pinggir Sub-district, Bengkalis District,Riau
Province, Indonesia.
1°3' 48.34"
101°14' 21.92"
101°14' 41.08"
QMF: RSPO-007a-13(Rev.0)
Page 4 of 66
Location of PT.
MSS
Figure 1: Location of PT Murini Sam Sam in Indonesia
Page 5 of 66
HGU area
Estate coordinates
Non-HGU
area
Figure 2: GIS map of PT Murini Sam Sam Estate (Scale: 1:75,000) with close-up of estate boundary.
Yellow region is the HGU area (certified) and green region is the non-HGU area (not yet certified)
Page 6 of 66
1.4 Description of Supply Base
Table 2: FFB Supply Information for PT Murini Sam- Sam in year 2014 and in year 2015
FFB supplied in year
2015
FFB supplied in year 2014
FFB Contributors
Tonnes
%
Tonnes
%
PT Murini Sam Sam estate (HGU
area)
22,225
8.01
25,983
7.03
PT MSS Estate Non-HGU area
10,908
3.93
12,594
3.40
Subtotal (estate)
33,133
11.94
38,577
10.43
244,441.35
88.06
331,294
89.57
277,574.345
100
369,871
100
Company owned estates:
Independant outgrowers
TOTAL
Table 3: Certified tonnages claimed, certified tonnages purchased or sold, total and projected CPO and
PK production from PT Murini Sam-Sam Palm Oil Mill
Amount (MT)
FFB
CPO
PK
Certified tonnages claimed
-
6,435
1,778
Certified tonnages sold
-
0
0
Certified tonnages purchased
-
0
0
Total Actual Production for year 2015
369,871
68,980
19,011
Actual Certified Production for year 2015*
25,983
-
4,846
OER: 18.65%
1,336
KER: 5.14%
382,325
72,451
20,072
26,877
5,093
1,411
-
OER: 18.95%
KER: 5.25%
Conversion Rate for year 2015
Projected output for year 2016
Projected Certified Production for year
2016**
Projected conversion rate for year 2015**
* From company-owned estate with approved HGU only
** Calculated based on assumption that 7.03% of crop received is from the certified area of the estate, as per
the FFB supply history in year 2015 in Table 3.
Page 7 of 66
1.5 Dates of Plantings and Replanting Cycles
The company follows a replanting cycle of 25 years, however the actual replanting cycle may be increased depending on the actual productivity of the crop. Information on the dates of plantings are as per the table below.
Table 4: Age and year of plantings of company estate supplying to PT Murini Sam-Sam
Oil palm planted area at PT
Murini Sam (ha)
Age & Year of Plantings
1993 (22 years old)
177.2
1995 (20 years old)
628.33
1996 (19 years old)
44.78
850.31
TOTAL
*Note: The company had also planted 438.79 ha of oil palm within the non-HGU area. Since the company has not obtained the
Land Use Rights certificate (HGU) for this area yet, this is removed from the table until it is confirmed to be included in the certification scope.
Table 5: Planned and actual oil palm replanting activities for PT Murini Sam-Sam
There has been no replanting carried out since the establishment of the estate in year 1999. The company
plans to carry out their first round of replanting in year 2018 for total of 330.22 ha for year 1993 planted area.
Year
Total planned replanting
area for PT MSS estate
Actual total area
replanted (ha)
2016
-
-
2017
-
-
2018
330.22*
-
2019
-
-
2010
-
-
*Note: This does not include planned replanting area for the non-HGU area, in which 250.08 ha of year 1991 plantings is also
planned for replanting, hence total planned replanting area including non-HGU area is 529.53ha.
1.6 Other Achievements and Certifications Held
Table 6: Details of other certifications or awards held by PT Murini Sam-Sam
Name of mill /
Certification Body
Certification Standard / Award achieved
estate
/ Awarder
PT Murini
Zero Accident Award for achieving 1,415,744
Manpower DepartSam-Sam Es- working hours without any accidents, calculated
ment of the Republic
tate
since 1 January 2012 until 31 December 2014
of Indonesia
PT Murini
Performance Rating Program in Environmental
Ministry of EnvironSam-Sam
Management (PROPER) Level: Blue
ment and Forestry
Palm Oil Mill
PT Murini
CSR Best Practice for MDG’s in Conjunction
Coordinating MinisSam-Sam
with Indonesia Development Goals
ter for People's WelPalm Oil Mill
Category: Silver for increasing the age of chilfare, Republic of Indren participating in year 9 education through
donesia
the ‘Wilmar Education Partnership Program’
Date
Achieved
31 August 2015
For period of
2013-2014
15 September
2011
Page 8 of 66
1.7 Area of Plantation (Total, Planted and Mature)
Table 7: Oil Palm Planted Area Summary, FFB Production and Average yield/ha for PT Murini Sam Sam
in year 2014
Estate Name
Total area
(ha)
PT Murini
Sam-Sam
967.00
Oil Palm
Mature
Immature
FFB
Planted area (Production) (Non-production) Production*
(ha)
area (ha)
area (ha)
(tonnes)
850.31
850.31
-
22,227
Average
yield/ ha
26.14
Table 8: Land use data for PT Murini Sam-Sam
Estate Name
Total
area
(ha)
Oil Palm
Planted
Area (ha)
PT Murini SamSam (HGU area)
967.00
850.31
HCV/
Land used for other purposes (ha)
Potential
HCV areas*
(ha)
Non-plantable
area
52.92
8.95
Not included in current certification scope (for reference only):
Non-HGU area
466.00
438.79
0.86
1.30
Total
1,433.00
1,289.10
53.78
10.25
Palm Oil Road, Housing &
Mill
Drainage
19.12
35.70
-
25.05
19.12
60.75
1.8 Organisational Information / Contact Person
Contacts details of the company are as follows:
Company Name:
PT Murini Sam Sam (subsidiary of Wilmar International Group)
RSPO Membership no.
2-0017-05-000-00
Address:
Site: Jl. Lintas Pekanbaru-Duri, KM 92.8, Pangkalan Libut Village, Pinggir Subdistrict, Bengkalis District,Riau Province, Indonesia.
Office: Jl. Soekarno–Hatta, Komplek Sentral Komersial Arengka (SKA)
Blok F79–F80, Pekanbaru – Riau 28294, Indonesia
Contact Person:
Mr. Priadi
Telephone:
+62 813 74813864
Email:
[email protected]
1.9 Description of Company History, Socio-economy & Environment
As stated under Section 1.2 of this report, the company has an Estate Business Permit (‘Izin Usaha PerEstatean’ or IUP) of the estate dated 14 August 2004 has been approved for 1233.13 ha. However, the company has
yet to receive the approved HGU for 466 ha of area planted in year 1991 due to ongoing planning process of
RTRWP area by the local authorities. Some of this land area of 466 ha was also not included in the original IUP
area of 1233.13 ha. The entire 466ha of land was previously planted with oil palm by local communities, and
upon establishment of the plantation in year 1991, the company took over the land, paid compensation to the
affected local community members owning plots of land within this 466ha of land and from then on these areas
were under the company’s management. The approval process for this 466ha, and once approved, the company will apply to conduct a new IUP and new Environmental Management/Monitoring Efforts documents (‘Usaha
Pengelolaan Lingkungan/ Usaha Pemantauan Lingkungan’ or UPL/UKL) for this area, hence the total land area
will be revised and increased from the previous area of 1233.13 ha approved in the existing IUP. This 466 ha
will not be included in the scope of certification until the HGU of this area has been approved and the company
has obtained a new IUP and prepared a new UPL/UKL set of documents for the estate. The current estate area
included in the certification scope is 967 ha.
Page 9 of 66
Table 9: General Information on PT Murini Sam-Sam estate
No.
1
Description
Surrounding stakeholders (at estate boundaries)
North
East
Pangkalan Libut Village
South
West
Sungai Meranti Village
2.
3.
Total Area (ha)
Hydrology
4.
Geology
5.
Soil type
B
C
D
Soil Map Main Characteristic/ LimitaUnits*
tion
Bgr/2
Bgr/3
Bgr/4
Sdg/2
Rsu/2
Nka/1
Deep fine sandy clay textured soils. Soil erosion on
steper slopes. Low fertility.
Deep well-drained soils.
Texture loamy. Moisture
stress and yield fluctuations.
Soil erosion on steeper
slopes. Low fertility
Poor drainage and flooding
Btu/1
Lus/1
Erg/sh/1 Moderately deep tp shallow
Erg/m/1 organic soils. Subsidence
on drainage. Leaning
palms. Termite activity.
*Note:
Bgr = Bungor soil series
Sdg = Serdang soil series
Rsu = Rasau soil series
Nka = Nangka soil series
Climate
Topography
Elevation
High
Conservation
Value Report –
Re.Mark Asia
2014
1233.13 ha (including 466ha of non-HGU area)
Main river bordering with estate: Mandau River
River tribunary located within the estate: Meranti River
Estate experiences periodic flooding areas
Sandstones, shales and sub-recent riverine alluvium.
Northern parts more dissected compared to the rest
10 soil mapping units identified and grouped into 4 soil management groups as follows:
Soil Management
Group
A
6.
7.
8.
Reference
Source
Estate
Soils of PT MSS
Estate – Param
Agricultural Soil
Surveys (M) Sdn.
Bhd. (May 2008)
Extent
Ha
%
49.1
4.0
1,036.4
84.4%
110.5
9.0%
7.4
0.6%
Btu = Bukit Tuku soil series
Lus = Lunas soil series
Erg = Erong soil series
Tropical with annual rainfall of 1,780 – 2,417mm per annum
Level to hilly terrain; Slope: 0-35%+ or 0-20°+
10 – 50m (150 feet)
Page 10 of 66
1.10 Time Bound Plan for Other Management Units
The time frame laid out below is considered to be both challenging and realistic. The audit team is satisfied that
the company conforms with the RSPO requirements for partial certification as laid out in Clause 4.2.4 of the
RSPO Certification Systems document.
Table 10: Time Bound Plan of the Other Management Units under Wilmar International Group
Name of Holding
Location
Time bound
plan
for certification
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
Certified
PT Rimba Harapan Sakti
Central Kalimantan
2016
Certified
PT Buluh Cawang Plantation
West Kalimantan
2015
Certified
PT Sinarsiak Dianpermai
Riau
2014
PT Musi Banyuasin Indah
South Sumatra
2014
PT Karunia Kencana Permaisejati
Central Kalimantan
2016
PT Murini Sam Sam
Riau
2014
PT. Bumi Pratama Khatulistiwa
West Kalimantan
2016
Gap Assesment
on 19/09/2014
Full Assessment
on 28/11/2014
Full Assessment
on 09/04/2015
Full Assessment
on 02/11/2015
Planned
PT. Agro Nusa Investama (Landak)
West Kalimantan
2016
Planned
PT. Agro Palindo Sakti 2
West Kalimantan
2016
Planned
PT. Agrindo Indah Persada 2
Bangko - Jambi
2016
Planned
PT. Putra Indotropical
West Kalimantan
2016
Planned
PT. Pratama Prosentindo
West Kalimantan
2016
Planned
PT. Indoresin Putra Mandiri
West Kalimantan
2016
PT. Asiatic Persada
Jambi
2013
PT. Citra Riau Sarana 1
Riau
2014
PT Citra Riau Sarana (ML) 3
Riau
2014
Planned
Not classified, company sold
Not classified, shares
are being divested
are being divested
Page 11 of 66
PT Citra Riau Sarana 2
Riau
2014
are being divested
2015
Certified
2015
Certified
Sabahmas Palm Oil Mill
Labuk, Sandakan
Sabah
Labuk, Sandakan
Sabah
Lahad Datu, Sabah
2015
Certified
Saremas 1 Palm Oil Mill
Miri, Sarawak
2015
Certified
Saremas 2 Palm Oil Mill
Miri, Sarawak
2015
Certified
Terusan Palm Oil Mill
Labuk, Sandakan
Sabah
Telupid, Sandakan,
Sabah
Sugut, Sandakan
Sabah
2015
Certified
2015
Certified
Malaysia
Sapi Palm Oil Mill
Reka Halus Palm Oil Mill
Ribubonus Palm Oil Mill
Sri Kamusan Palm Oil Mill
2015
Certified
Table 11: New Development Area under Wilmar International
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 Kalimantan
1,024 ha
Approved
Biase Plantations (Ibiae Estate)
Calabar, Nigeria
5594 ha
Name of Holding
Biase Plantations (Calaro Extension)
Calabar, Nigeria
3066 ha
Eiyup Industry (Oban Estate)
Calabar, Nigeria
2986 ha
Biase Plantations (Biase estate)
Calabar, Nigeria
8029 ha
Approved
Not submitted (Pending
HCV/HCS study
Not submitted (Pending
HCV/HCS study
Overlapping boundaries
1.11 Compliance to Rules for Partial Certification
Compliance of the uncertified management units of Wilmar Plantation Limited against the rules for partial certification according to RSPO Certification System clause 4.2.4 was assessed through document check for all company’s self assessment report for uncertified unit. A summary of findings is as stated below.
Partial Certification Requirements
Audit Findings
(a) The parent organization or one of its Wilmar International Indonesia is RSPO member with membermajority owned and / or managed subsid- ship number 2-0017-05-000-00.
iaries is a member of RSPO.
(b-d) A challenging time-bound plan for Refer to the time bound plan under Section 1.10 above
certifying all its relevant entities is submitted to the Certification Body (CB) during
the first certification audit. The timebound 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 appropriate, such that
changes to the time-bound plan are per-
Page 12 of 66
Audit Findings
mitted only where the organisation can
demonstrate that they are justified
(e) No replacement of primary forest or
any area identified as containing High
Conservation Values (HCVs) or required
to maintain or enhance 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 under 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 Facility, in accordance with RSPO criteria 6.4, 7.5 and 7.6.
Wilmar International carried out the New Planting Procedure for
BIASE Plantation Limited (Ibiae estate) in Nigeria with an announcement made on the RSPO website on 9 November 2012.
During this NPP process, a complaint was submitted by the
Rainforest Resource & Development Centre (RRDC) on behalf
of the Ibiae Land Lord Community. The complaint covered infringements to several aspects of Principle 1 and Principle 2 of
the RSPO P&C. The case was taken up and investigated by the
RSPO Complaints Panel, with decision made for RSPO to a lawyer well acquainted with Nigerian laws to review and give an authoritative opinion on whether the company had complied 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 progress of
the case will be monitored.
Further
details
on
this
case
is
available
http://www.rspo.org/members/complaints/status-ofcomplaints/view/26
here:
There is also on ongoing land dispute at PT Gersindo Minang
Plantation (GMP), West Sumatra under Wilmar, 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 accordance with RSPO criterion
6.3.
A previously ongoing labour conflict in PT Tania Selatan regarding employee bonus has been resolved There are no other identified labour disputes ongoing at other subsidiary companies of
Wilmar.
(h) Legal non-compliance, if any, are being resolved in accordance with the legal
requirements, 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 International 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 Planta-
Page 13 of 66
Audit Findings
tion, 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 using an adsorption system which had not been studied or approved as
per the company’s environmental management document
-
There was no follow up by the company’s management on
the results of the evaluation by the Agam district on PT AMP
mill’s wastewater treatment facility 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 efforts to
close these legal non-compliances.
1.12 Plan for certification of associated smallholders
The mill only received crop from PT Murini Sam Sam estates and from independent third party sources, and
has not associated smallholders. Therefore the company does not have any plan for certification of associated
smallholders.
1.13 Approximate Tonnages Certified
The approximate tonnages certified, based on projected certified production for year 2016 as described under
Table 3, is as follows:
Crude Palm Oil (CPO) : 5,093 MT
Palm Kernel (PK)
: 1,411 MT
1.14 Approval for Certification
PT Murini Sam Sam has established and maintains an effective 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 requirements of RSPO Principles and Criteria 2013
(generic) and the RSPO Supply Chain Certification System Standard 2014.
The audit team leader recommends to the PT TUV Rheinland accredited office for the certification of PT Murini
Sam-Sam as a producer of RSPO Certified Sustainable Palm Oil.
1.15 Date of Certificate Issued and Scope of Certificate
The scope of the certificate covers production of palm oil from PT Murini Sam-Sam Palm Oil Mill and its supply
base, which includes PT Murini Sam-Sam Estate. The date of certificate issued is June 08, 2016. Further details of the certificate are as per Appendix 1.
Page 14 of 66
2.0 ASSESSMENT PROCESS
2.1 Certification Body
PT TUV Rheinland Indonesia is member of Group TÜV Rheinland Group, a global leader in independent testing and assessment services. The TÜV Rheinland Group was established in 1872 with offices located in over
500 locations in 65 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, and SA 8000. PT TUV Rheinland Indonesia’s office is located in Jakarta, Indonesia.
2.2 Qualifications of Lead Assessor and Assessment Team
Name
Position
Qualifications / Experience
Education: B.Sc. Biotechnology & B.Sc. Environmental Management - Monash
University.
Carol Ng
Lead
Auditor
Suriadi Ali
Auditor
(OSH,
Environment)
Naik Monang
Parlindungan
Auditor
(Best
practices)
Trainings attended: RSPO Lead Auditor Course – Wildasia; RSPO Supply Chain
Certification Systems training course – David Ogg & Partners; RSPO Malaysian
National Interpretation Requirements and Certification – SIRIM; Implementation of
RSPO Principles & Criteria - QA Plus; RSPO Stepwise Support Programme - Proforest/WildAsia; OHSAS18001:2007 Auditor/Lead Auditor Training – Neville Clarke;
ISO14001 Auditor/ Lead Auditor Training – Neville Clarke; SA8000 5 Day Basic
Auditor Course – Global Group; Elaborating on the RSPO P&C Social and Labour
Standards and the Mechanics of Social Auditing Workshop – Verité; Certification
Body Biodiversity Forum & Workshop – RSPO; 2nd Biodiversity Seminar – RSPO;
Environmental Quality Act 1974 – Department of Environment.
Working experience: RSPO Lead Auditor (since March 2015), CDM Auditor (since
year 2012), Assistant Manager (since year 2012) and Project Engineer (since year
2009) for TUV Rheinland Malaysia; currently responsible for conducting and coordinating RSPO certification projects; previous experience in implementing sustainable
practices in Sime Darby plantations to comply with RSPO requirements, performing
RSPO internal audits and implementing sustainability projects. Prepared training materials and conducted several RSPO requirements trainings and workshops to plantation management teams (2008).
Education: Diploma Applied Analitycal Chemistry. North Sumatra University, Medan
and Bachelor of Chemical Engineering, University of Jaya Baya, Jakarta.
Trainings attended: ISO 9000:2000 Series Auditor / Lead Auditor Training - PE International (Jakarta), IEMA Advanced EMS Auditor (IEMA / EARA ISO 14001) Auditor / Lead Auditor Training Course - PE International (Jakarta), OHSAS 18001 Lead
Auditor Training Course - PE International (Jakarta). ISPO lead auditor training. National Examination Board of Occupational Safety and Health (International General
Certification (IGC) 1,2 and 3 TUV Nord (Dubai). National Examination Board of Occupational Safety and Health (International Technical Certification (ITC) for Oil and
Gas Industries. RRC (Dubai). Indonesian Engineer Association (PII) (Jakarta), Occupational Health and Safety Specialist for lifting equipments. Indonesia Man Power
and Transmigration Department (Jakarta).
Working experience: Experienced in Quality Control from 1992-2004. Coordinator
for Safety Quality and EnvironmentManagement System since 2002 – present. Auditor for Environmental Management System since 2002 – present. Auditor for OHSAS
18001 since 2012 - present. Conducted over 10 Quality Management System audits
Environmental Management System audits and OHSAS
Education: Bachelor of Forestry, Gadjah Mada University.Trainings attended: Indonesian Sustainable Palm Oil (ISPO) Auditor, Quality Management System (QMS)
Auditor/Lead Auditor (ISO 9001:2008) by IRCA, Environmental Management Systems Auditor/Lead Auditor Conversion Training by IRCA (ISO 14001-2004), and
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Lingga
Dewi Akbari
Auditor
(social)
HCVA Training
Work experience: Field Assistant PT Sapta Karya Damai (2008-2013), auditor in
PT Sucofindo (2013-2015), and Auditor in PT TUV Rheinland Indonesia (2015present)
Education: Bachelor of Agriculture, Departement of Social and Economic of
Agriculture, Sriwijaya University, Palembang.
Trainings attended: RSPO Lead Auditor Training, Pekanbaru (August 2014).
Indonesian Sustainable Palm Oil (ISPO) Lead Auditor Training (May 2002); ISO
9001:2008 IRCA Lead Auditor, ISO 14000:2004, OHSAS 18001:2007 trainings -.
OHSAS/SMK3 Lead Auditor based on PP No.50 /2012.
Working experience: Exprience in consulting, training and auditing Quality,
Environmental, OHSAS of PT Surveyor Indonesia Pekanbaru ( 2000 – 2010), Lead
Auditor : QMS 9001:2008, Auditor Indonesian Sustainable Palm Oil (ISPO) and
Roundtable Sustainable Palm Oil (RSPO) for TUV Rheinland since 2013
2.3 Assessment Methodology
The certification assessment was conducted from 3 to 6 November 2015 as per the assessment program 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 Rheinland 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 estate to the mill, combined with common management systems, it was
possible to carry out both field and document assessments of the estate and mill within the time frame without
compromising the integrity of the assessment in anyway.
The one mill and one estate 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 the estate and the mill.
The company proposed the correction and corrective action for all identified non conformities raised to the certification body 30 days after the closing meeting. Verification of closure of major non-conformances was conducted 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 surveillance audit. The certification assessment agenda
is as explained below.
Main Assessment Agenda
Date
3/11/2015
Location/ Main
sites
PT MSS Palm Oil
Mill
Main activities
Stakeholder Consultation Meeting
- Introduction to team members
- Presentation on RSPO
- Open discussion with stakeholders
Opening Meeting
- Introduction to team members
- Briefing and finalization of audit plan
- Briefing on RSPO audit process
- Presentation on estate activities and production data
- Presentation on mill activities and production data
PT MSS Estate
Document review: Estate production data, area statements, replanting programme, review of documents and evidence of compliance to RSPO P&C,
evidence of compliance with legal requirements, requests for information,
publicly available documents, land conflicts related documents, provision of
information, land ownership documents, Social Impact Assessment (SIA),
social management, labour related documents, Legal Requirements (OSH &
Environment), OSH, Training, SOP’s of Legal requirements register & implementation, Field operations (spraying, harvesting, manuring), fertiliz-
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er application records, chemical application records, chemical stock inventory , HIRARC,OSH Committee & safety records, Accident records,Training &
PPE issuance, Waste storage also Hazardous waste inventories & manifest
Site visit: Murini Samsam Estate Chemical stores,Workshops,
Interviews: Head of Murini Samsam Estate, agronomist personal and Manager estate, Spraying, Harvesting and Manuring workers, KTU (Head of administration) , Head of Gender Committee
4/11/2015
PT MSS Estate
Site visit: EFB application area, turnera subulata planted area, barn owl
boxes, Sei Meranti village, Division offices and field visits, Stake HGU No. 7
on Block 10, Stake HGU No. 8 on Block 10, Stake HGU No. 22 on Block
17, shrub swamp, Meranti River, harvesting and chemist spraying on block
11 (B9) and Block 5 (B4).
Document review: Legal requirements register, SOPs for estate, IPM programmes, monitoring records and training records, greenhouse gas identification and management plan, Palm GHG Summary of greenhouse has calculations, internal audit reports, Research & Development visit reports,
chemical list, chemical usage records, Code of conduct, Legal Requirements (Estate and Mill), practices minimize and control erosion and degradation of soils, High Conservation Value
5/11/2015
PT MSS Palm Oil
Mill
Interviews; Village heads, community leaders , Sprayers, Manurers, Harvestors, Head of Murini Samsam Estate, agronomist personnel and Manager estate, Spraying, Harvesting and Manuring workers.
Document Review: SCCS SOPs, organizational chart, Management respresentative nomination letter, mass balance sheet templates, training record, Social Impact Assessment, CSR program records, workers pay slips,
insurance records, Social Impact Assessment, CSR program records, workers pay slips, insurance records, Code of conduct, Legal Requirements (Estate and Mill), efficiency of fossil fuel use and the use of renewable energy
is optimized, OHS, Environmental, Issues related to Legal compliance
,Occupational Safety & Health implementation,Training , AMDAL, UPL/UKL,
RKL/RPL Aspect Impact Analysis
Site visit: Mill tour
Interviews: Weighbridge operator, Boiler operators, Engine Room Operator,
Head of Mill, staff operation, foreman) and Mill Worker ( operator)
2.4 Stakeholder Consultation and Stakeholders Contacted
The stakeholder consultation involved both external and internal stakeholders. External stakeholders were notified to make comments on the certification assessment by placing an invitation to comment on the RSPO website. Stakeholders included those immediately linked with the operation of the company such employees, outgrowers, 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 stakeholder consultation meeting was also held at the PT Murini Sam Sam Palm Oil Mill on 3 November 2015. Letters inviting 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
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with its objective and expressed their willingness to collaborate in the promotion of sustainable palm oil in North
Sumatera province. In all interviews and meetings, the assessment team did not restrict discussion of both the
positive and negative aspects of operations conducted by the company’s estate and mill.
The stakeholder consultation meeting held with stakeholders during the audit was extensive and productive,
with 24 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 infrastructure. All stakeholder issues raised were recorded and forwarded to the management for their written reponse, 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 for March 2017.
3.0 ASSESSMENT FINDINGS
3.1 Summary of Findings
During the certification assessment, no nonconformities were assigned against Major Compliance indicators
while 1 (one) nonconformity was assigned against Minor Compliance Indicators. 14 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 year 2013
•
RSPO Principles & Criteria (P&C)
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 decision making.
Findings:
There was a letter register book named as Logbook (internal and External) showed during audit. All of
incoming communication regarding information request were by a written letter and has registered in
Mail Logbook. The logbook recorded information according to the sender (stakeholders), date and
letter number, type of information request, disposition and responses (directly or by letter with date).
There were are some specific information (as mentions on P&C 1.2) requests from stakeholders to the
company. Other types of information requests are also registered in the logbook, such as request for
contributions or permission to carry out an activity. Records of responses to requests for information
from the company are recorded on the log book.
The company is using Standard Operating Procedure (SOP) no. PRO-BM-007 issued at August 1st
2015, as the guidance of responding and information request from stakeholders. The company still
follows these procedures and showed that they keep to their commitment for transparency. Every
information request from stakeholder has responded properly. Stakeholders from local community that
has been interviewed during this audit informed that PT MSS is very open to communication. The
records of incoming and out-coming letters have been maintained at least 3 years as described by the
SOP.
Records of requests for information from PT. Murini SamSam in response to Information Requests
(form FRM-BM-004) in 2015 were sighted, with some examples as follows :
Estate PT Murini SamSam :
1. Letter from Committee development Masque Darul Hikmah Sei Meranti District of Pinggir
No.05/Pan/Mus-DH/SM/I/2015 date January 15th 2015 concerning a request for help for the
construction of a mosque.
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2.
3.
Letter form SMAN 6 District of Pinggir , No. 420 / SMAN 6 / P / 2015/105 concerning request to borrow heavy equipment (loader) from PT MSS dated October 26th, 2015
Letter from Head of pangkalan Libut Village No. 37/PEM/PKL/X/2015 dated October 2th 2015,
concerning request for help as piled land.
PT Murini Samsam Mill:
1. Letter from Head Sector Police Pinggir no B/12/1/2015 dated January 31th 2015 concerning
requests for help with electrical poles.
2. Letter from Community Youth Organization Pangkalan Libut Village, no. 03/KTPB/III/IX/2015 dated
September 7th 2015 requesting help to provide fresh water.
3. Letter from Head Sei Meranti Village date September 30th 2015 concerning request for help heavy
equipment (Grader).
Responses to request for information request from the company were sighted as follows:
Estate:
1. Letter from PT MSS to Head of High Scool (SMA N 6) District of Pinggir the response letter
regarding the Request Help Heavy Equipment (Loader) No: 081 / KBN-MSS / X / 2015 dated
October 27 th 2015 which states that: The company is not able to provide assistance due to damage
to heavy equipment
2. Response letter No. 003 / KBN-MASS / I / 2015 concerning the request for assistance for the
construction of the Development Committee Masque Darul Hikmah Sei Meranti Village, the Company
may request assistance helps the soil piled as many as 50 cars.
3. Available response letter Letter No. 37 / PEM / PKL / X / 2015 dated October 2, 2015 from the Office
of the Chief of Base Village Libut Kec. Pinggir regarding: Request assistance to borrow a wheel
barrow, in the form of a reply request for help no: 077 / KBN-MSS / X / 2015, and the company stated
that they can help the request.
Mill:
1. Available response letter number 003 / EXT / MCC / MSS / II / 2015 to letter number B / 12/1/2015 of
Head Police Sector Pinggir dated January 31th 2015 regarding requests for assistance of electrical Pole.
The company stated that they can help with this request.
2. Available response Letter no. 005/EXT/PKS/MSS/II/2015for Community Youth Organization
Pangkalan Libut Village , No: 03/KTPB/III/IX/2015 date September 7th 2015 , concerning for help fresh
water. The company stated that they can help with this request.
3. Available response letter form PT MSS no 004/EXT/PKS/MSS/II/2015 for of Head Sei Meranti Village
date September 30th 2015 concerning request for help heavy equipment (Grader). The company stated
that they can help with this request.
The company has a Records Control Procedures No.PRO-GEN-002 approved by AGM dated October
26, 2013 Objective to ensure records pertaining to quality management systems, environmental, OSH
and RSPO identified, stored and maintained safely and secure until a certain period before the documents are authorized to be destroyed.
This documents describes the minimum timeframe to maintain documents and records as follows:
1. Quality Management System Documents - 5 years.
2. Administrative document - 5 years,
3. Tax related documents - 10 years, Finance related document - 10 years, instantion 5 years
4. Personnel files and clinical records - 5 years.
5. 3 years for personnel files and clinics after the employee resigns or is no longer employed at PT MSS
6. All CSR records shall be maintained according to the need of the company
Compliance status: Full Compliance
Criterion 1.2: Management documents are publicly available, except where this is prevented by
commercial confidentiality or where disclosure of information would result in negative environmental or social outcomes.
Findings:
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The company has a procedure number PRO-BM-007 Rev 01 dated August 1st 2015 regarding
Communication, Consultation and Coordination with stakeholder. The procedure describe how to
responds communication, consultation and coordination initiative from stakeholders. This document
also describes the method of communication to stakeholders such as:
1. General Information Requests and Company’s Policies.
2. Inputs, Feedback and compaint mechanism regarding the company’s operational impacts.
3. Requests for assistance, Community Development (CD) and Corporate Social Responsibility (CSR)
4. The document is completed with communication process flowchart.
This document desribe the kind of documents that could accessed by stakeholders as follows:
1. Company Profile
2. Corporate Policy
3. The organizational structure of Employees
4. Plant operational procedures
5. Plant operational records
6. Report of HCV and HCV Management Plans
7. Company CD Checks and CSR Reports
8. SIA Reports
9. Environment Impact Assessment documents
10. Data on Company Employees
11. Data on use of foreign labor
12. HGU (land use rights) and other licenses and permits
Criterion 1.3: Growers and millers commit to ethical conduct in all business operations and
transactions.
Findings:
The company does not yet have a policy on ethical conduct prepared in the name of Wilmar Group.
The company is currently adopting the policy of PPB Oil Palms Berhad namely a memorandum dated
May 13, 2015 signed by the Chairman & MD PPB Oil Palms Berhad.
Compliance status: Non-compliance
NCR No. 2016-01 of 01
Criterion 2.1: There is compliance with all applicable local, national and ratified international laws
and regulations.
Findings:
There is evidence of company’s efforts taken to comply with legal requirements and records that the
company has submitted required report to local institutions as required. Examples found are as follows:
Estate :
- Hazardous waste permit for estate dated 24 November 2014 and valid for 5 years, issued by the
‘Board of Investment and Integrated Licensing Services’
- Mandatory Reports to the Social and Manpower of Bengkalis District January 2015, Registration
Number: 070 255 / DKTK / 2015 dated January 22, 2015, the obligation to register again on January
23 2016.
- Report of UKL-UPL first half of 2015 was sent to the Environment Agency (BLH) Bengkalis on 3 September 2015, the Agriculture Agency Bengkalis district on 3 September 2015, BLH Riau Province on
27 August 2015.
- Report from the Committee of Occupational Health and Safety (‘Panitia Pembina Keselamatan dan
Kesehatan Kerja’/ P2K3) period from April to June 2015, provided proof of receipt by the Office of
Manpower District Bengkalis dated August 28, 2015
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-
Report P2K3 period from July to September 2015, provided proof of receipt by the Office of Manpower
District Bengkalis dated October 1, 2015.
Report on Fire Monitoring Procedures land and plantation development report (LPUP) the first half of
2015, provided proof of receipt by the Department of Plantation Kab.Bengkalis on 3 September 2015.
Investment Activity Report of the first half (January - June) 2015 to the Board of Investment and the
Regional Licensing Riau Province were sent online and received by the Regional Investment Coordinating Board Indragiri Hilir District No. LK84900 report dated July 13th, 2015.
PT Murini Samsam have a procedure which covers a comprehensive list of international, national, subnational and provincial laws which details the requirements of specific to the mill and estate operations.
In the list of regulation and legislation are available list of document distribution to all levels of management of the company. The company conducts audits for compliance to laws and regulations annually. The company also has a copy of the legal requirements for each area is kept by the person in
charge of each section.
The company has procedures of the identification and evaluation the legal aspects of the legislation
that applies with the document number BM-004 PRO-00 revision effective date of 1 November 2013.
In the procedure is mentioned personnel who is responsible for the identification and evaluation of laws
and regulations, as follows:
• For requirements pertaining to the estate, it is the Community Development or ‘Binamitra’
Manager supported by other departments in the the company's organization
• For requirements pertaining to health, safety and the environment, it is the Environmental,
Health & Safety (EHS) department supported by other departments in the the company's organization
• For requirements pertaining to labour, it is the Human Resources Manager supported by other
departments in the the company's organization
A relevant section within the law that is identified and linked to activities on PRO-BM-003 Law and regulation compliances, The SOP states that the identification and evaluation is to be carried out at least
annualy or when some law and regulation has change where applicable and conducted by the each
section, and estate and will be compiled by Legal officer and supported by the Head of Operations /
field and other departments within the company organisation. Murini Samsam Estate and Palm Oil Mill
maintains and updates their list of all applicable legal requirements relating to environmental, occupational safety and health, the company plantations, and employment as well as records of internal compliance checks to legal requirements. Example of latest amendments to the legal requirements register
are as follows:
• For labour, there is available minutes of updates and revisions documents of a list the laws,
regulation and legislation on 1 April 2015 where in the minutes there is addition of several regulations such as: Act RI No.20 of 1990 about Minimum age is permitted to work, Permenakertrans No. 07/2013 on the minimum wage
• For environment, there are additions of the latest regulations, i.e. Act 37 of 2014 on the Soil
and Water Conservation, Act No.39 of 2014 on Plantations, Indonesian Republic Government
Regulation (Peraturan Pemerintah (PP) Republik Indonesia (RI)) no. 101 year 2014 regarding
Hazardous Waste Management, Environmental regulation (‘Peraturan Menteri Lingkungan
Hidup’ (PermenLH)) No.14 of 2013 regarding Hazardous Waste Symbols and Labels, Regulation (‘Undang-undang’ (UU)) RI No.37 tahun 2014 related to Soil and Water Conservation, UU
RI No.39 tahun 2014 Plantation
• For health and occupational safety is the addition of the latest regulations: Ministry of Health
Decision (‘Keputusan Menteri Kesihatan’ (Kepmenkes)) No.1405 of 2002 about the health requirements of office and industrial work environment, Regulation on Minister of Manpower and
Transmigration (Peraturan Menteri Tenaga Kerja dan Transmigrasi (Permenakertrans)) No.04
of 1993 on Accident Insurance, and Manpower regulation No.26 year 2014 related to OHS
management system.
• For the plantation is the addition of the latest regulations: Government Regulation in Lieu of
Law (‘Peraturan Pemerintah Pengganti Undang-Undang’ (Perpu)) 01/2004 revision of Act
41/1999 on Forestry, Act 19/2004 revision of Act No.41 of 1999 on Forestry, Act No. 40 of
2007 on Limited Liability Companies, Act No. 17 of 2012 on Cooperatives, Act No. 39 of 2014
on Plantations, Agriculture Ministry Regulation (Peraturan Menteri Pertanian (Permentan)) 11
2015 about certification systems Indonesian Sustainable Palm Oil (ISPO)
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In the procedure contained source of information for the identification and evaluation of changes in
laws and regulations can be obtained through several sources, namely:
• Book of law and regulation
• Non-governmental organization
• Public information media such as TV, newspaper, internet, email
• Seminars and conferences
• Related agencies
The company provides a mechanism for evaluation of implementation and compliance to applicable legal
requirements in a standard operation procedure i.e. PRO-BM-003 and Form FRM-GEN-028 for OHS Law
and Regulation List Register, rev 01, dated 01 May 2015, Form FRM-GEN-029 for Plantation Law and
Regulation List Register, Form FRM-GEN-027 for Environmental Law and Regulation List Register, Form
FRM-GEN-026 for Manpower Law and Regulation List Register.
Compliance status: Full compliance
Criterion 2.2: The right to use the land can be demonstrated, and is not legitimately contested
by local communities with demonstrable rights.
Findings:
The company has the legal ownership of land as evidenced by the record:
•
•
•
•
Decree of the State Minister of Agrarian / Head of National Land Agency with the number: 26 /
HGU / BPN / 94 on the granting of Hak Guna Usaha
Land Use Rights (‘Hak Guna Usaha’ (HGU)) Certificate No. 1 dated January 20, 1995
Business License Plantation from Local Department of Plantation Bengkalis with number: 1287
/ UT.518 / VIII / 2004 dated August 14, 2004
Business license plantation industries from Local Department of Plantation Bengkalis number:
1558 / UT.560 / II / 2005 dated February 7, 2005 with a mill capacity of 90 tons / hour.
The company has documents that describe the history of the land, among others:
• Document Upaya Pengelolaan Lingkungan Hidup dan Upaya Pemantauan Lingkungan Hidup
for Estate and Palm Oil Mill area of 1233.13 ha in 2002.
• High Conservation Value Identification document (HCV Identification) by Re Mark Asia on
2014
• Social Impact Assessment document (SIA) on 2014
The company has a Special Situation Pictorial Map (‘Peta Gambar Situasi’) Khusus No. 12/1993 with
an area of 967 hectares located in the Pinggir village, District Mandau, Bengkalis, Riau Province issued
by BPN Riau Province. Based on field observation, done checking peg No. 07, 08, 11, 21 and 22. By
sampling the peg in good condition and well maintained. The company has procedures Identification
and Maintenance of the Boundary HGU with the document number BM-009 Pro-00 revision dated valid
on 1 November 2013. In these procedures regulated on the implementation of the boundary maintenance conducted every 3 months. The company also conducts regular maintenance of the existing
concession.
The company has an SOP for Dispute Settlement / Land dispute No. PRO-BM-006 dated 01 November
2013. The purpose is for defining land dispute resolution mechanisms that occur on estate nucleus
land (land controlled and managed by the company). The procedure is as follows:
1. Issues regarding land disputes raised by the public are to be submitted in writing to the company
Development Partners and Legal.
2. The ‘Bina Mitra’ (BM) Staff shall analyze and review land claims of which the result will be submitted
to the Chief Operating Unit.
3. The BM Staff will conduct analysis and verification based on evidence of land acquisition.
4. Affected parties will be invited for clarification and mediation.
5. If no agreement is reached then the company shall apply to local governments to facilitate the set-
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tlement of disputes.
6. If no agreement is reached, the settlement shall proceed through legal proceedings.
Based on interview with community surroudings the company was found there were no conflict
between the community and the company. This condition was completed by official announcement
letter from the village head or head of community, stated that there were no conflict between both
parties. Based on the statement area there are areas of land under dispute between the company and
the community. Hence the company has no record of deliberation progress for the settlement of
disputes.
Criterion 2.3: Use of land for oil palm does not diminish the legal rights, or customary rights, of
other users, without their free, prior and informed consent.
Findings:
Based on field observation and interviews with the surrounding community, there were no areas under
customary rights of local communities identified within the plantation, even when the plantation area
was occupied by previous company for other purpose. The SIA report also did not indicate that there
were any areas under customary rights within PT .MSS plantation area
Based on interview with the communities surrouding the company, thetre was found there were no conflict between the community and the company. This condition was supported by official announcement
letter from the village head or head of community, stated that there were no conflict between both parties.
And based on the statement area use of the land by PT. MSS for oil palm does not diminish the legal
rights, customary rights or use rights of other users around estate PT MSS and there are no areas of
land into a dispute between the company and the community. Therefore the company has no record of
deliberation progress for the settlement of disputes
Criterion 3.1: There is an implemented management plan that aims to achieve long-term economic and financial viability.
Findings:
The company has a document budget and projection for 5 years (2015-2020) for PT Murini Sam Sam
Estate and Mill,including the following contents:
- Financials
- Area Statement, Crop & Estate Costs
- FFB Processed & Milling Cost
- Plantation Development Cost
- Capital Expenditure for Estate and Mill
- Sustainability Implementation Costs
Under Financials, the annual projected amount of FFB processed from own estate and own crop, projected annual Oil Extraction Rates (OER) and Kernel Extraction Rates (KER) and projected Crude
Palm Oil (CPO) and Palm Kernel (PK) production was stated. Under the Profit and Loss sheet, the projected annual FFB prices for own crop and outside crop as well as projected annual CPO and PK prices were stated in Rp‘000, with estimated annual revenue calculated as well and indicating positive total
revenue.
The company plans to carry out replanting in year 2018 with a mix of 75% clonal oil palm plantlets
(Ramets) and and 25% DXP (Tenera) planting material. The clonal planting material is used as it is expected to have a higher yield than the commonly used DXP planting material.
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As shown in Table 5 above, an area of 330.22 ha of year 1993 planted area is planned for replanting in
year 2018. It is noted that this does not include planned replanting area for the non-HGU area (not
within the current certification scope), in which 250.08 ha of year 1991 plantings is also planned from
replanting, hence total planned replanting area including non-HGU area is 529.53ha.
Compliance status: Full-compliance
Criterion 4.1: Operating procedures are appropriately documented and consistently implemented and monitored.
Findings:
The estate has a documented Agriculture Manual and Standard Operating Procedure for Oil Palm year
2011 for Wilmar International Limited. The manual covers standard operating procedures for the following aspects:
1) Pre-development Survey, Assessment & Planting
2) Oil Palm Nursery Practices
3) Land Clearing and Preparation
4) Establishment and Maintenance of Legume Covers
5) Oil Palm Planting & Supplying/Replacement, and Oil Palm Planting Densityu and Pattern
6) Upkeep and Maintenance of Oil Palm
7) Harvesting of FFB
8) Plant Protection – Pest & Disease Management
9) Oil Palm to Oil Palm Replanting
10) EFB Mulching
11) Quantitative Agro-Management System (QAMS)
12) Oil Palm Thinnning Technique
The company also has an FFB purchasing procedure No. 001 / TBS-SOP / VIII / 2015 dated August
10, 2015, for purchase of FFB from external parties. This SOP is to ensure that FFB purchasing activities are conducted properly and are verifiable in terms of continuity, time and the quality of palm fruit
were purchased and to ensure no errors or deviations in the purchasing activities of FFB. Further details on this SOP and implementations are described under CR6.10.
There is evidence that the company conducted periodic internal audits to check for implementation of
the SOPs. For example, there was a visit to the company conducted by the Assistant General Manager
for Riau region on 11 September 2015. A report for this visit was sighted and included several findings
pertaining to areas where implementation of the SOPs required improvement, e.g.
Failure to harvest some ripe bunches
Loose fruit collection was not optimal
There are also annual visits to the estate conducted by Wilmar’s Research & Development Department
to inspected the general condition of the estate, with reports generated as seen in R&D visit reports
dated 13 June 2015 (for visit on 8th of June 2015) and 14 February 2014 for visit done on 8th of January
2014). The visit reports included comments and recommendations for improvement in areas of upkeep,
pest and disease management, pruning, cultivation, and collection.
The company also has dedicated internal auditors to evaluate compliance against the RSPO standards
as well as the Indonesian Sustainable Palm Oil (ISPO) standard. The company has a procedure no.
PRO-GEN-003 dated 26 October 2013 regarding Internal audit which states that the internal audit shall
covers evaluation of compliance to requirements for quality, environment, safety, and RSPO. Sighted
last internal audit findings report done by 2 internal auditors was dated 24-25 March 2015, in which 17
findings were listed. However, it was observed that the format of the non-conformity findings table provided in this report was not the same format as required in the company’s procedure PRO-GEN-003 for
internal audits. The format also did not list any root cause, correction or corrective action as per the
SOP nonconformance form, but only stated the date of closure. This was noted as an observation
Compliance status: Compliance with observations
Page 24 of 66
Criterion 4.2: Practices maintain soil fertility at, or where possible improve soil fertility to, a level
that ensures optimal and sustained yield.
Findings:
The company has a SOP on fertilizer application with with number of procedures SOP-EST-001 revised 00 effective date January 1, 2013. The company has records implementation of fertilizer application from January to October 2015. Based on records of fertilizer application, it was seen that the application activities was undertaken in accordance with the recommendations of the leaf analysis.
The company has records of fertilizer use per ton of FFB, among others:
• NPK: total application until October 2015 amounted to 716,550,000 kg with FFB produced
much as 32,869,730 kg so that the application of fertilizers per ton of FFB is 0.021 kg / ton of
FFB
• Dolomite: total application until October 2015 amounted to 63,450,000 kg with FFB produced
FFB
• SOA/ZA: total application until October 2015 amounted to 291,550,000 kg with FFB produced
FFB
• MOP: total application until October 2015 amounted to 280,500,000 kg with FFB produced
FFB
• RP: total application until October 2015 amounted to 25,550,000 kg with FFB produced much
as 32,869,730 kg so that the application of fertilizers per ton of FFB is 0.00077 kg / ton of FFB
The company has procedure of soil and leaves analysis with number of document Pro-Est-008 revised
01 effective date October 1, 2013. In the procedure stated that the leaf analysis shall be conducted
every one year and soil analysis conducted 5-10 years. Based on the existing records, it was seen that
the implementation of fertilizer application was conducted in accordance with a procedure that is
owned by the company. A record of the results of leaf analysis was done in 2014 by Environmental
Management Unit (EMU) Laboratory to obtain fertilizer recommendation in 2015. The results of analysis the leaves has described the content of N, P, K, Mg, Ca, B, Cu, Zn, Fe. For the soil analysis conducted by Param Agricultural Soil Survey in May 2008. Records the results of the soil analysis and the
leaves used as a fertilizer recommendations and fertilizer program in 2015.
The company has records of the use EFB to maintain soil fertility. The company has records of EFB
application from January to October 2015 covering an area 80.01 ha with the amount of empty bunch
much as 3,200,700 kg. The program includes application doses per year of planting for each block. For
the palm oil mill effluent which is applied for Land Application, records show amount applied in year
2014 was total of 149,901 m3 and in year 2015 was 160,123 m3 (until October 2015).
Criterion 4.3: Practices minimise and control erosion and degradation of soils.
Findings:
The company does not have marginal land. The company has a map of type soil with a scale of 1:
50,000. Based on the soil type maps, PT. MSS, including of the type Alluvial.
The company does not have a management strategy for planting on sloping areas. Based on map
slope, PT. MSS is a flat area covering an area of 866 ha (flat undulating), undulating covering an area
of 96 ha and hilly covering an area of 5 ha.
The company has a maintenance road program to the main road or collection road in 2015 and supported with a budget that contained in budget 2015. Supporting equipment includes one grader. Records of road maintenance in 2015 include:
• Maintenance of the main road in 2015, planned throughout the 13,000 meters and the implementation until October 2015 throughout the 10,832 meters
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•
Maintenance of the collection road in 2015, planned throughout the 64,163 meters and the implementation until October 2015 throughout the 53,728 meters.
The company does not have any area of peat and marginal soil.
Criterion 4.4: Practices maintain the quality and availability of surface and ground water.
Findings:
The mill has a documented water management plan for 2015, which includes a schedule for measures
to reduce water usage. Actual implementation of planned activities is also monitored and recorded by
the mill. Murini Samsama estates have all developed a documented water management plan for year
2015 which includes performing regular maintenance of watergates, regular desilting of drains (main,
collection, boundary and field drains) and digging of pits to collect excess water. A schedule to carry out
these activities once a month was also developed and details of activities carried out are recorded.
Murini Samsam estate also has a documented schedule for carrying out desilting of drains only in specific months.
Hydrology maps of the estates show that there are no big rivers or permanent watercourses flowing
through Murini Samsam Estate, and water does not accumulate within the estate area. In Murini Samsam estate, there is a small network of streams that flow to Meranti River, but these streams only exist
during raining season, so there are no permanent streams at this estate. To protect the water flow and
prevent erosion, the management of PT Murini Samsam designated riparian buffer zones 10 meter width
on both side of the river, where palm trees are marked with yellow paint to mark the buffer zones where
chemical application is not permitted. The company has also planted vetiver grass that can accelerate
coverage of the open ground and prevent erosion. Murini Samsam estate established plans to maintained riparian river in good condition until replanting.
As stated in the company’s High Conservation Value report prepared in year 2014, the estate experiences periodic flooding at areas adjacent to Mandau River, usually during rainy season, with flood
heights reaching 0.5 – 2m and usually going down on after 3 days. To manage this issue, the company
has developed a drainage system to reduce the flooding. The company also maintained a reservoir for
water within the housing area to be used for consumption of staff and workers.
The company carries out annual quality analysis of upstream and downstream points of Mandau River
and Merantai River, with samples sent to the Unit of Technical Implementation for Materials Testing
Laboratory, Riau Province Government. As seen from the latest river quality analysis results for year
2015, the river water quality results were as follows:
For water samples of Mandau River dated 9 April 2015, the BOD and COD of the upstream sample
was 17.81 ppm and 59.36ppm respectively while for downstream sample was 21.12 ppm and
70.40ppm respectively. Both samples exceeded the standard of 6 ppm for BOD and 50ppm for
COD for Class III water sources as per the local regulation PP 82 year 2001, and the BOD and
COD results showed a decrease in water quality in the downstream samples compared to upstream
For water samples of Meranti River dated 24 June 2015, the BOD and COD of the upstream sample was 17.62 ppm and 43.02 ppm respectively while for downstream sample was 11.07 ppm and
40.07ppm respectively. Both samples exceeded the standard of 6 ppm for BOD for Class III water
sources as per the local regulation PP 82 year 2001.
However, since the upstream samples were noted to have already exceeded the legal limits for water
quality, the source or river pollution most likely came from other sources. As informed during the
Stakeholder Consultation meeting, there were a number of other companies in the area that had polluted the river.
The mill maintains records of water usage per tonne FFB. The trends of water usage are compared
against their monthly target of 1.8 tonnes of water used per tonne of FFB. The mill conducts sampling of
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effluent BOD5 (outlet pond no.6 and 7) with tests conducted externally (Unit of Technical Implementation
for Materials Testing Laboratory. Riau Province Governmen). The mill conducts sampling of effluent
BOD5 (outlet pond no.6 and 7) with tests conducted externally (Unit of Technical Implementation for Materials Testing Laboratory. Riau Province Government). Sample results show (period of April 2014 to
June 2015) that effluent BOD5 for land application is below 5,000 pm as required in the mill’s land application permit No.156/KPTS/III/2011 dated 31 March 2011 which valid for 5 years.
Based on monthly production report (FRM-MIL-101) that the mill has water usage data/information each
monthly for year 2015 (until June), divided into process water usage per tonnes FFB, boiler water usage
per tonnes FFB and domestic water usage per tonnes FFB. Source of water usage in mill are surface
water and In year 2015 until October that total water usage are 228,596 m3 (1.6 m3/tonnes FFB) such
as processing are 51,419 m3 (0.14 m3/tonnes FFB), boiler are 177,150 m3 (0.77 m3/tonnes FFB) and
domestic are 75,991 m3 (0.69 m3/tonnes FFB). Whereas, total water usage year 2014 are 325,171 m3
(1.54 m3/tonnes FFB) such as processing are 60,221 m3 (0.22 m3/tonnes FFB), boiler are 201,623 m3
(0.73 m3/tonnes FFB) and domestic are 162,013 m3 (0.59 m3/tonnes FFB). The company has been program water management plan for year 2015 regarding information quality, availability of surface ground
water and use of water, based on data of rainfall at around HGU PT Murini Sam Sam average 187.42
mm per years.
Criterion 4.5: Pests, diseases, weeds and invasive introduced species are effectively managed
using appropriate Integrated Pest Management (IPM) techniques.
Findings:
The company’s procedure for IPM is as documented in the SOP for Detection and Census of Pests
and Diseases, SOP-EST-019 dated 1 January 2013. The procedures covers SOPs for conducting census for leaf-eating pests (nettle caterpillars and bagworms), Oryctes rhinoceros (rhinoceros beetles),
rats, termites, Ganoderma and upper stem rot. Management of nettle caterpillar pests is described in
the company’s SOP for Nettle Caterpillar Management with Fogging, SOP-EST-020 dated 1 October
2013.
The estate currently only carries out regular detection and census of nettle caterpillar and bagworm
pests as these are the most common pests, while attacks rates of other pests are considered low and
regularl census is not required. According to SOP, detection is done once every 4 months for each
block, followed by a census where caterpillar attacks are found. Sample completed detection forms for
each block were sighted for month of April 2015, July 2015 and October 2015 as well as completed
census forms for each block where attacks were found, were sighted. The data from the detection and
census results and summarized in a monthly summary for which indicated the number of live larvae
and percentage live larvae found at each block. Where it is found that the level of caterpillar or bagworm attacks is medium (>2-5%) or high (>5-10%). As seen from detection and census records for
year 2015, there were only two blocks, i.e. block 7 and 8 in month of April 2015 found have high caterpillar attack rates above 30% for small, medium and large sized larvae. This was noted in
The company took action by conducting fogging with the chemical Bravo, covering 7.5 ha on 10 April
2015. As seen from subsequent detection and census records, the attacks rates at these blocks reduced after treatment and no further chemical application was done throughout the estate as attack
rates were found to be low in July and October 2015.
As part of biological control to reduce attacks rates of nettle caterpillars and bagworms, the company
has also planted turnera subulata, a beneficial plant which attracts natural predators of leaf-eating
pests. Total area planted with turnera covers 1065 ha, and maintenance is carried out once every 3
months, as seem from the work plan maintenance of turnera subulata for year 2015.
In line with recommendations from the company’s R&D department in R&D visit report dated 14 February 2014 for visit done on 8th of January 2014, the company had installed one barn owl box in each of
the estate’s 17 blocks as biological control to reduce attacks of rat pests. The company conducts
maintenance of the boxes once every 3 months, according to a documented programme for Barn Owl
Box maintenance, as well as a weekly census of the barn owl boxes, which is recorded on Barn Own
Box monitoring sheets, including the occupancy rate of the boxes. The census records for each box
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sighted for September 2015 showed that all boxes were frequently occupied.
There are records of IPM training done on 13 January 2015 for 5 participants, and on 22 February
2015 for 13 participants done at the estate office. Training records included a list of attendance and
photos. For training conducted on 13 January 2015, individual training evaluations were conducted for
each training participant.
Criterion 4.6: Agrochemicals are used in a way that does not endanger health or the environment. There is no prophylactic use of pesticides, except in specific situations identified in national Best Practice guidelines. Where agrochemicals are used that are categorised as World
Health Organisation Type 1A or 1B, or are listed by the Stockholm or Rotterdam Conventions,
growers are actively seeking to identify alternatives, and this is documented.
Findings:
PT Muruni Samsam Estate has a recommendation Letter No.: 560/DTKT/PK/2014/58, dated April 29,
2014, concerning of Pesticides Usage, from District Labor Office of Bengkalis District Government. For
PT Murini Samsam Estate, chemical recommended for us include Lindomen: 80 ltrs/Year, Glisat : 1,700
ltrs/Year, Decis 10Kgs/Year, Tiara: 30Kgs/Year, Winson: 30Kgs/Year and Capture : 20 ltrs/year.
The estate also maintains a register of chemicals used for year 2015, which includes information on
pesticide name, active ingredient, class, LD50, mode of action, target, recommended dosage, producer
and registration number according to the Indonesian Green Book, which lists legally registered chemicals. The chemicals included in the register are as follows:
Herbicides:
1) Glisat 480SL; a.i. isopropyl amine; LD50: 4230mg/Kg; dosage: 1.5-2L/ha
2) Ken-Amine 865 SL; a.i. 2,4-D dimethyl amine; LD50: 375mg/Kg; dosage 1-2L/ha
3) Tiara 20WG; a.i. Methyl metsufuron; LD50: >5000mg/Kg; dosage: 0.075 L/ha
4) Glinat 150SL; a.i. Ammoniu, glufosinate 150g/l; LD50: 1625 mg/Kg ; dosage: 4-6 L/ha
5) Abolisi 865; a.i. 2,4-D dimethyl amine; LD50: 375mg/Kg ; dosage: 865 L/ha
Insecticides:
6) ICON 25EC (for use against mosquitoes); a.i. Lambda cyhalotrin; LD50: C56 mg/Kg ; dosage: 1-25
ml/ha for high volume spraying and 40 ml/ 2-5 litre for fogging
7) Bravo 50 EC (for used against nettel caterpillars); a.i. cypermethrin ; LD50: 250 mg/Kg; dosage:
0.01 L/ha
The estate maintains monthly summaries of usage of each type of herbicide and insecticide which includes information on block applied, area applied, no. of stands, stands per hectare, type of spraying
conducted and hectarage applied. The form also includes calculation of amount of pesticides applied
per hectare and active ingredient applied per hectare. For example, as seen from records of chemical
application for month of August 2015:
Glisat applied was 596 litres over 71.53 hectares, with a.i. of 480g/l, which is equivalent to 8.33 litres/ha and 3,996 g/ha of active ingredient
Tiara applied was 6.9 litres over 71.53 hectares, with a.i. of 20%, which is equivalent to 0.10 litres/ha 0.03 g/ha of active ingredient
Abolisi applied was 3.5 litres over 87.37 hectares, with a.i. of 865g/l, which is equivalent to 0.04 litres/ha or 34.65 g/ha of active ingredient
Glisat applied was 17.5 litres over 87.37 hectares, with a.i. of 150g/l, which is equivalent to 0.20 litres/ha or 30.04 g/ha of active ingredient
Report of chemical usage for September 2015, in total area applied 319.63 Ha : Giisat 480SL :
1.5ltrs/Ha, Tiara 20WG : 0.075ltrs/Ha, Glinat 150 SL : 6ltrs/Ha and Aboliisi 865 : 865 grams/Ha
The toxicity recapitulation of Herbicide, Glisat 480SL, at Murini Samsam Estate showed that in September 2015, the applied area was 319.63 Ha, amount of glisat used was around 101,6 liter, active ingredi-
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ent was Isoprophyl amina glifosat 480 grams/liter, dose per ha was 1.5 liters, and the chemical is classfified as Class U with LD 50 for humans of 4230mg/Kg.
Records show that chemicals used in estates during the year 2015 are legally registered chemicals,
such as Glisat with the active ingredient glyphosate isopropylamine. The company maintains monthly
data on pesticide use trends of the chemicals listed under WHO Type IA, IB, or listed under the Stockholm and Rotterdam Conventions.
Murini Samsam estate has developed a plan to reduce their usage of pesticides. Checks of pesticides
issuance records at Murini Samsam showed that very little of this chemical is used at this estate. For
example, usage of pesticides for IPM management is minimal and only applied when attack rates of
caterpillars is considered high. The last usage of chemicals for fogging of nettle caterpillars was in April
2015, where Bravo applied was 3.5 litres over 87.37 hectares, with a.i. of 50g/l, which is equivalent to
0.04 litres/ha or 34.65 g/ha of active ingredient. It was verified from pest census records that attack
rates were high during this period, which warranted the use of chemicals for control. Prior to that, the
last usage of Bravo was in March 2014.
The organization has been demonstrated that all pesticides handled, used and/or applied by persons
who have completed the necessary training. Some document were reviewed, i.e:
Training Need Identification to improved human resources, year 2015 at Murini Samsam Estate.
The results, i.e: Training of Handling and Usage of Hazardous Materials. It was attend by 1 person
of warehouse personnel, 6 (six) persons of maintenance foreman (Mandor), and 20 maintenance
employees who related to hazardous substance.
Letter of Murini Samsam Estate Manager on March 18, 2015, concerning Training of Chemical Usage. The letter said that; request of training for all pesticides / chemical-applying worker (according
to Decree of ministry of labor: 187/Men/1999.
Briefing on hazardous material usage, and training of fertilizing / Maintenance Palm Oil Mill, date March
11, 2015 at Murini Samsam Estate
PT Murini Samsam estate and the mill have their own licenses for hazardous waste collection, including
for chemical containers, which are confirmed to be valid at explained under CR2.1 above, while Murini
Samsam estate sends their hazardous wastes for collection to Murini Samsam estate. Murini Samsam
estate maintains records of amount of hazardous wastes received from Murini Samsam estates, as seen
from sample receipt records for 30 September 2015 and 30 June 2015. Murini Samsam estate maintains
records of incoming hazardous wastes in Control Form for Incoming and Outgoing Hazardous Wastes
and Inventories of Hazardous Wastes. Licensed contractors PT Shali Riau Lestari, where most recent
collection was on 30 June 2015 and prior to that was 18 January 2015, collect hazardous wastes.
It was found that the inventories for all hazardous wastes at PT Murini Samsam estate have been updated from January to June 2015 up until time of collection by the contractor. For example, last inventory
update for oil filters was 174 pieces on 30 June 2015. Inventory records at the mill hazardous waste
stores were found to be consistent with the hazardous waste collection summary note prepared by the
mill and final collection amount stated in the manifests.
PT Murini Samsam has no planning for pesticide application aerially, the requirement is not applicable.
There is evidence of training on chemical application done. There is a letter from the Murini Samsam Estate Manager on March 18, 2015, concerning Training of Chemical Usage. The letter requested for training for all pesticides / chemical-applying worker (according to Decree of ministry of labor:
187/Men/1999. Recordsof hazardous material usage, and training of fertilizing / Maintenance Palm Oil
Mill, dated September 1, 2015 at Murini Samsam Estate were sighted.
Murini Samsam Palm Oil Mill & Estate, there is a chemical-spraying activities and it were observes the
workers had good understanding of their job and resposbilities related their job risks and complete personal protective equipments were found being worn by the workers while perform the job including during disposal of the chemical containers used.
There is evidence that the organization has perform specific annual medical surveillance for pesticide
operators, for example:
There is Report of Measurement/Examination Report Working Environmental dan Medical Check PT
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Murini Samsam Year of 2015, Document No.: 66/MSS/IX/20145, issued by A’AD Hospital ; The medical
check up was include:
1. Audiometry
2. Spirometry
3. Cholinesterase (consist of 14 women worker)
4. Pb on Blood
From interviews of female sprayers at Murini Samsam estate, they said that they undergo medical
checkups once every 3 months and this includes blood and urine test and checks for headaches or skin
itchiness. Sprayers interviewed at all estates also mentioned that they receive free supply of milk from
the management once a week. The milk serves to neutralize the effects of pesticide poisoning and it is
required by law in Indonesia to provide milk to workers handling pesticides. Based on the medical checkup result, show that all personnel’s health is still normal.
There is evidence that the organization has defined a mechanism to ensure that all chemical-applying
worker not consist of pregnant women and not pregnant nor breastfeed their babies, even for the company’s sub-contracted workers but in Murini Samsam estate there was no sub-contractor workers for this
kind of work.
Criterion 4.7: An occupational health and safety plan is documented, effectively communicated
and implemented.
Findings:
PT Murini Samsam Estate has a documented occupational safety and health (OSH) policy. Murini Samsam Estate an Palm Oil Mill OSH policy dated 22 May 2015 which is signed by the Country Head of
Wilmar Group Indonesia. The OSH policy includes documented objectives and targets, i.e. to comply
with the company’s OSH procedures, committed to wearing of Personal Protective Equipment (PPE) at
work sites, and manage potential work risks at the site. The company has demonstrated consistency in
implementation in Occupation Safety and health, as during 2012 to 2014 they had achieved Zero Accident certificate number 358 Year 2015 date 31 August 2015 from The Indonesia Ministry of Manpower
according to Ministry Regulation No. PER-01/MEN/I/2007.
PT Murini Samsam Mill has identified and documented Occupational Health and Safety (OHS) risks for
all mill activities as this was documented under its 5 August 2015 environmental aspects and impacts
register. The designated PPE storage area in PT Murini Samsam Mill Laboratory was located properly
as the lab’s crew can easily locate the available PPE that must be worn during their activities in there.
Also the Shower/Eye wash station was easy to used when the emergency situation occurs and some
safety warning signs were found during plant tour activities in the PT Murini Samsam Palm oil mill at the
certain places such as stairs in the sortation area and safety accessory such as Rotary lamp, back alarm
and the mirrors for 1 available wheel loaders was properly attached at the machine.
Also in PT Murini Samsam Mill was have a consistent implementation in the work permit system implementation such as was found as the welding process work in the mill also PT Murini Samsam Estate
has Hazard Identification, Risk Assessment and Risk Control document for 2015, dated 6 January 2015
for all estate activities including spraying, manuring, harvesting, workshop activities, generator, truck
transportation, chemical and material storage, and waste handling.
Chemical storekeeper in Murini Samsam Estate is provided with helmets, boots and goggles and look
much aware to the visitor that need to wear the PPE while entering his area as it was already arranged
in procedure No. PRO-GEN-016 Rev0 2009 related to Personal Protective Equipment. Contract fieldmaintenance workers are also required to wear boots and provide by company. Female spraying/manual
maintenance workers interviewed in Murini Samsam are provided with Personal Protective Equipment
(PPE) by the company, including masks, gloves, and plastic aprons. The sprayers are provided with appropriate cloth gloves for spraying activity. While they wash their PPE at washing facilities at the division
office and they store their PPE in the estate store.
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As sighted from Murini Samsam Estate documents, Head of Social, Manpower and Cooperation Office
of Bengkalis District by virtue of Decree No KEP/DTKT-PK/P2K3/2015/661 dated 4 November 2015
have approved the organisational team of Estate OSH structure. As for PT Murini Samsam Mill, the
Head of Social and for Murini Samsam Estate : Manpower and Cooperation Office of Bengkalis District
through Decree No KEP.105/DTKT-PK/P2K3/2015 dated 29 August 2015 have approved its organisational structure team of OSH. Regular reporting system to the related responsible local government also
were sighted as they were found to be providing quarterly reports which consist of the OHS team activities such as safety patrol, inspection, regular meeting and emergency drill, summary of accidents report
using Frequency Rate and Severity Rate calculation.
The company has an emergency response procedure documented under Standard Operating Procedure
No. PRO-GEN-013 Rev 05 dated 15 April 2015, including identification of potential emergency situations
(fire, accidents, flood, explosion, and chemical leakage) and a flowchart for Handling Fire Emergencies.
PT Murini Samsam Mill has records of emergency response training and simulation on 18 December
2014 for over 40 workers, as well as land burning simulation on 22 May 2015 for 35 estate division
staffs. It was confirmed through interviews with three harvesters that they had attended the emergency
response training. Notes of the training results are maintained, including the steps of the accident &
emergency response procedure. Records of other OSH training, i.e. for first aid and management of
hazardous waste, are available as described under CR4.8. Fire emergency training for Murini Samsam
Estate was conducted on 15 January 2015 for 46 staff. Training on emergency response procedure for
fire was conducted in June 2015 for 31 workers at Murini Samsam Estate.
During site visits, field executor (supervisor) in Murini Samsam Estates were found having brought first
aid kits to the field, and those are located at other locations such as estate office, workshops, chemical
storehouse, etc. It was observed that the first aid kit at Division 1 of Murini Samsam office a complete
pack of first aid kit. However for harvester and manurer foreman also have a first aid kit.
Estates and Mill provide National Employee Social Security (Jamsostek) to permanent employees, as
sighted from sampled payslips of 3 harvesters of Murini Samsam Estate, as verified with interview. According to the company’s Work Instruction for Jamsostek Participants and Fees, the amount paid by the
company for Jamsostek contribution is 3 % of the employees' basic salary, while another 2% payment is
made through regular deduction of their basic salary. It has been verified paid correctly. As for contract
workers, Murini Samsam Estate deducts the amount required for their insurance against payment to the
respective contractors, and pays this insurance amount directly to the relevant authority to ensure that
all contract workers are covered with insurance.
In the annual medical surveillance were found the results of audiometric examination for employees who
experience mild restricted hearing were as many as 22 people. Follow-up need to be done in the form of
consulting the company doctor and awareness programs to further sensitize employees to use PPE.
This was raised as an observation.
The occupational injuries recorded using Lost Time Accident (LTA) has been defined in the report and investigation procedure No. PRO-GEN-014 Rev.01 dated 12 November 2010 such as incident happen on
10 April 2015, time incident was on 6.15 PM for one harvester employee, report completed with the witness statement and chronology of the accident also briefing conducted to prevent reoccurrences. No
LTA happen during the time as the injured person can back to work after first aid treatment from paramedic. Record of total man hours is stated on form No. FRM-SHE-008 revision 00 dated 1 July 2010.
Criterion 4.8: All staff, workers, smallholders and contractors are appropriately trained.
Findings:
As sighted in the FRM-HRD-013 a training program for year 2015 for PT Murini Samsam estate employees is available. The training program consist of chemical handling training, Integrated pest management and early warning system, electrical overhead power line harvesting activities and HCV training.
Evidence of the trainings conducted above was well maintained including their signed attendance list,
training materials and completed with the training evaluation. PT Murini Samsam Mill has also documented 2015 training plan, including training plan for OSH hazard and risk identification, workplace safety inspections, first aid training, hazardous waste management, and emergency response training. The
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estate and Mill have documented worker identification that requires training. For example in January to
December 2015, Murini Samsam Estate has also identified the training needs for total of 60 harvesters
and maintains training participant record. The training programme in 2015 has also been observed to include harvesting, fire emergency and pest management trainings.
The company’s estates maintain records of trainings delivered by contractors to their workers. As PT
Murini Samsam Estate harvesting training was delivered on January 2015. Signed attendance 20 participants list for Emergency Response Procedure, self assessment training including the training evaluation. Report on training result employees including the post training evaluation result was well documented in the mill office. The estate also carries out evaluation of workers understanding on the trainings provided.
Murini Samsam Estate holds records of competency certificates for employee such as General OHS
specialist certificate, OHS electric operator, Welder Operator, First Aider certificate and several available
contractors, i.e. contractors mill and road maintenance. Selection of contractors providing spraying
workers not done as they are not using the contractor for spraying activities.
Criterion 5.1: Aspects of plantation and mill management, including replanting, that have environmental impacts are identified, and plans to mitigate the negative impacts and promote the positive
ones are made, implemented and monitored, to demonstrate continuous improvement.
Findings:
The mill has their Environmental Management Documents or Dokumen Pengelolaan Lingkungan Hidup
(DPLH) which was revised from their previous approved document No.660/Bapedalda/319/2002 on 14
September 2002 and approved by the Head of Pekanbaru Regional Body for Management of Environmental Impacts as Mill capacity was changed from 45 tonnes/hours to 90 tonnes/hours. However the
progress of DPLH revision should be immediately followed up in view of changes in the plant's production capacity of 45 tons / hour to 90 tons / hour has been happening since 2005, this is raised as observation. This document includes details of the mill's activities pertaining to oil palm processing and production also analysis results for air quality, NOx, SOx, particulate, carbon monoxide, land water quality,
biological components and so on. Estates have their Environmental Management Efforts (‘Upaya Pengelolaan Lingkungan’ (UKL)) and Environmental Monitoring Efforts (‘Upaya Pemantauan Lingkungan’
(UPL)) document which was last revised on 21 April 2011 and approved by the Head of Pekanbaru Regional Body for Management of Environmental Impacts No.660/Bapedalda/319/2002 on 14 September
2002. The UKL and UPL document includes details on the estate activities, usage of natural resources,
climate, air and water quality, geography and other environmental aspects, social aspects, potential environmental impacts and monitoring.
The mill and all estates have also conducted their Identification of Environmental and Occupational
Safety Aspects and Impacts dated 13 January 2015 for the mill, 16 January 2015 for Murini Samsam estate. The document covers environmental and safety aspects and impacts for estate work activities (eg.
manual treatment, mechanical treatment, harvesting and tree maintenance), office activities, housing,
management of hazardous wastes and domestic wastes, usage of natural resources, warehouse operations, transport and so on.
The mill and all estates prepare a report every 6 months based on their UKL and UPL documents as required by legal requirements includes reports on air quality, emissions from electrical generator,
groundwater and soil quality, and noise. In Murini Samsam Estate, such report includes result of analysis of the same parameters, as well as of odour levels, and amount of hazardous waste produced. This
is reported semi-annually, while some parameters to be reported annually have been sighted in the estate’s December 2014 report, e.g. analysis of employment opportunities, local community perception and
CSR activities. The analysis results indicate no excess towards legally permitted standards. The last report was prepared on December 2014 and includes monitoring and analysis results for ambient air and
noise, water quality, and evaluation of results as they were sighted on report number
860/MT.I/08.06.70.169 for air ambient test result in Murini Samsam estate, 860/MT.I/08.06.70.172 dated
6 August 2015 for Clean Water test result from ground water sample point, No. 860/MT.I/08.06.70.171
for Plankton Benthos test result from surface water sample which conducted by Unit of Technical Implementation for Materials Testing Laboratory. Riau Province Government. The analysis results for mill
air and water quality show no exceedance of environmental parameters to legal standards. From the re-
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ports, it was found that all environmental quality parameters measured were within the legal standards.
The report has already been distributed to the related government department which concern to this UKL
and UPL (Environment Management Efforts) as required by law and regulation.
Compliance status: Compliance with observation
Criterion 5.2: The status of rare, threatened or endangered species (ERTs) and high conservation value habitats, if any, that exist in the plantation or that could be affected by plantation or
mill management, shall be identified and their conservation taken into account in management
plans and operations.
Findings:
The company has identified high conservation value (HCV Assessment) in the area of the concession.
Identification of HCV conducted in April 2014 by PT. Remark Asia. Based on identification of HCV,
there are 53.78 hectares including high conservation value areas consisting of:
•
•
•
HCV 1.1 Areas which have or providing support functions of biodiversity for protected areas or
conservation covering an area of 53.78 ha (Mandau river riparian, Meranti river, water reservoir 1, 2 and 3, shrub swamp)
HCV 1.3 Areas that are habitat for populations of threatened species, restricted range or protected survives covering an area of 46.84 hectares (shrub swamp merges with Mandau riparian river)
HCV 4.1 Areas or critical ecosystems as water supply and flood control for downstream communities covering an area of 24.26 hectares (water reservoir and river border)
Identification of HCV areas was conducted by PT. Remark Asia headed by Mr. Cecep Saepulloh that
has got qualification as HCV team leader and specialist from RSPO. In the report, there is a list of resource persons referenced for HCV assessment activities including from the company, local communities, the government, community leader. There is also the minutes of the stakeholder consultation HCV
Assessment and photo documentation of the public consultation.
Based on results of the HCV assessment obtained information that there are species of fauna include:
Birds: 3 types, Mammals: 6 types (one type of EN (IUCN) is the Sumateran elephant = Elephasmaximus sumatrensis, Reptiles: 2 types (one type of EN (IUCN), namely Sapit Crocodile = Tomistoma
schlegelii
The company has identified the HCV areas within the overall company concession. Identification of
HCV areas was conducted with reference to HCV toolkit that has accommodated the HCV NI. The
company has a map of HCV which was overlay with concession maps and map work area with a scale
of 1: 50,000.
Based on assessment report the identification of HCV there are areas that is habitat for the populations
of threatened species, restricted range or protected species able to survive in the form of Endangered
(EN), namely Sumateran Elephant and Sapit Crocodile.
Based on report and results of the identification of the HCV assessment, there is a management and
monitoring plan for the area which a habitat for populations of threatened species, restricted range or
protected to survive. Some of the management and monitoring plans include monitoring erosion regularly on Mandau river riparian, monitoring the condition of the river riparian, monitoring the success of
planting or enrichment in the areas of HCV, monitoring of the number of species and wildlife populations, estate security patrols, monitoring wildlife populations, monitoring rehabilitation results condition
of the plant around the river riparian and reservoir water, monitoring of water quality at Mandau river
and Meranti river, put up a sign warning and briefing on HCV areas.
The company has implemented a plan that has been prepared. Some examples of implementation of
the plan has been prepared, among others:
• Briefing on HCV management done regularly every six months to the employees and staff.
• Put up information signboard, protected animals and restrictions
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•
•
•
•
Marking boundaries of the water reservoir protected area
Planting Vertiver grass around the Meranti river riparian
Testing water quality of Mandau River
The company carries out regular monitoring every 1 month of the HCV area. Records of monitoring are set forth in the conservation area management report and the minutes of activity.
The company routinely conducts site inspections to ensure the implementation from mitigation plans
that have been made.
The company has an environmental policy issued on May 22, 2015 and signed by Country Head. In the
policy regulated that the company complies with environmental liabilities according to the law and legislation that apply. The company has a monthly program of briefings to employees, staff and other people protected animals. The company carries out field inspections to check the traps at the site of HCV
set forth in monthly report of the findings of HCV.
In the procedure of the protection of flora and fauna with the document number SOP-GEN-029 revision
01 effective date 8 September 2015 have been declared of sanctions follow the provisions of legislation, government regulations applicable if the employee proved to do things that are prohibited that is
not allowed to trade the wildlife both protected and unprotected
The company has a management plan and monitoring of HCV area in 2015-2019 as outlined in the
document number: MSS-001 HCV-00 revision effective date of January 2, 2015. In the plan described
about HCV location, classification, status and comments, actions to be taken, responsible, deadlines
and budgets are planned. The company has a monitoring report for the HCV area. The company does
not have any HCV areas that are located next to or within local community areas.
Criterion 5.3: Waste is reduced, recycled, re-used and disposed of in an environmentally
and socially responsible manner
Findings:
The mill and estate have identified all potential sources of wastes and pollution in their Environmental
and Safety Aspects and Impacts Identification document FRM-GEN-071 prepared in updated year 2015.
The company has a documented identification of wastes generated from estate activities, including the
field, workshop, store, office and housing area. The waste management plan includes identificaton of
type of waste produced (organic, inorganic or hazardous), form of waste (solid, liquid or gas), significance level, management plan and person-in-charge. All estates have a Standard Operating Procedure
available for management of domestic wastes generated from housing & offices, plastic wastes as well
as for hazardous wastes
Murini Samsam estate and the mill have their own licenses for hazardous waste collection
No.061/Kpts/BPMP2T-PZN/IX/2014/1077 valid to next 5 years and which are confirmed to be valid at
explained under CR2.1 above, while Murini Samsam estate sends their hazardous wastes for collection
to Murini Samsam estate temporary waste storage. Murini Samsam estate maintains records of amount
of hazardous wastes received from Murini Samsam estates, as seen from sample receipt records for 7
July 2014 and 29 April 2014. Murini Samsam estate maintains records of incoming hazardous wastes in
Control Form for Incoming and Outgoing Hazardous Wastes and Inventories of Hazardous Wastes.
Hazardous wastes are collected by Licensed contractors PT Shali Riau Lestari, where most recent collection was on 30 June 2015 and prior to that was 18 January 2015, collect hazardous wastes.
It was found that the inventories for all hazardous wastes at PT Murini Samsam estate have been updated from January to June 2015 up until time of collection by the contractor. For example, last inventory
update for oil filters was 174 pieces on 30 June 2015. Inventory records at the mill hazardous waste
stores were found to be consistent with the hazardous waste collection summary note prepared by the
mill and final collection amount stated in the manifests.
The mill conducts sampling of effluent BOD5 (outlet pond no.6 and 7) with tests conducted externally
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(Unit of Technical Implementation for Materials Testing Laboratory. Riau Province Government). Sample
results show (period of April 2014 to June 2015) that effluent BOD5 for land application is below 5,000
pm as required in the mill’s land application permit No.156/KPTS/III/2011 dated 31 March 2011 which is
valid for 5 years. Land Application Block marking should be done in accordance with the license which already held by the company. This was raised as an observation.
Criterion 5.4: Efficiency of energy use and use of renewable energy is maximized.
Findings:
The company has a Projection Period 2015-2020. In these projections planned construction of Methane Capture in 2016. The company also has a program of monitoring the efficient use of renewable
energy, the use of diesel fuel and electricity use. The company at this time is conducting monitoring of
the efficiency of the use of shell, fiber, diesel fuel and electricity.
The company carries out monitoring among others:
Year 2014:
• Use of energy produced from the use of fiber and shell is 5,935.975 kcal/ton FFB or
32,250.832 kcal/ton CPO
• Use of diesel fuel used for generators much as 107,650 liters with 285,887.563 tonnes of FFB
processed so the use of diesel is 0.376 liter / ton FFB
• Use of diesel fuel used for heavy equipment and vehicle operation with much as 75,992 liters
of 258,887.563 tonnes of FFB processed so the use of diesel is 0,293 liters / ton FFB
Year 2015 (until October 2015)
• Use of energy produced from the use of fiber and shell is 4,325.304 kcal/ton FFB or 23,892.15
kcal/ton CPO
• Use of diesel fuel used for generators much as 110,450 liters with 329,796.795 tonnes of FFB
processed so the use of diesel is 0.334 liter / ton FFB
• Use of diesel fuel used for heavy equipment and vehicle operation with much as 86,058 liters
of 329,796.795 tonnes of FFB processed so the use of diesel is 0,260 liters / ton FFB
Criterion 5.5: Use of fire for waste disposal and for preparing land for replanting is avoided
except in specific situations, as identified in the ASEAN guidelines or other regional best practice.
Findings:
The company implements a zero burning policy in accordance with Chapter 3: Land Clearing and
Preparation of the documented Agriculture Manual and Standard Operating Procedure for Oil Palm
year 2011 for Wilmar International Limited which states that areas prepared for land clearing shall be
felled and green stacking (zero burn) carried out using windrow mechanical stacking.
As the company has not carried out as replanting since the establishment of the company, there is evidence yet of implementation of this policy. The first replanting is planned only for year 2018.
Criterion 5.6: Plans to reduce pollution and emissions, including greenhouse gases, are developed, implemented and monitored.
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Findings:
The estate has a documented matrix for monitoring and management of greenhouse gases for year
2015, dated 2 January 2015. The document includes greenhouse mitigation plans for activities identified to produce greenhouse gases, applicable location, period of monitoring and management and remarks. The activities listed and summary of improvement activities include:
1) Application of fertilizer – to reduce area where fertilizer application is conducted by not applying at
river riparian buffer zones and water bodies, to apply fertilizer according to recommendation and
budget, no disposal of fertilizer bags at areas other than the store
2) Usage of pesticides – to reduce area where chemicals are applied by not applying chemical pesticides by the river riparian buffer zones and edges of water bodies, usage of pesticides shall be according to the recommendation and budget, no disposal of chemical containers at areas other than
the hazardous waste store, no chemical mixing to be done in the field, only at the store, implementation of IPM techniques such as planting of turnera subulata, and barn owl boxes
3) Usage of fossil fuels, oil and grease – usage of containers during refilling of fossil fuels to contain
any spillages, to clean up spillages with the spill kit and reuse if possible, usage of the oil trap at
the workshop to contain any spillages brought by the rain, to store empty oil containers at the hazardous waste store
4) Gaseous emissions from heavy machinery – regular maintenance of heavy machinery to reduce
inefficient burning, testing of gas emissions from moving vehicles, ambient air testing to be conducted at the plantation surroundings
5) Usage of electricity – to use electricity at each work station only when work is being done, to encourage staff and workers to save electricity while at home
6) EFB application – EFB to be applied evenly in accordance with the SOP, application to be carried
out in accordance with the work program
7) Estate operations - to carry out zero burning both at the housing environment and in the plantation
area, to conducted land clearing mechanically, to protect identified HCV areas, to enrich/rehabilitate plantings at HCV areas with local spcies of wood, and to inform local communities
as well workers, especially those with land around the estate’s HGU area, to not carry out any land
burning and to not destroy the HCV areas.
The mill also has a documented identification of greenhouse gas emissions which includes boiler
emissions, diesel genset emissions and methane gas emissions. The identification also stated te risk
level of the emission source, management plan, status of implementation and frequency. The management plans for each identified source is as follows:
Boiler emissions: To carry out preventive maintenance according to the defined schedule
Diesel genset emissions: To carry out preventive maintenance according to schedule and to carry
out genset emissions testing
Methane gas emissions: To carry out effluent testing once every month. The mill also has plans to
implement a methane capture project in year 2016, and had prepared a budget of Rp26,600,000
for implementation of this project. No other evidence of implementation was sighted yet as the
planning of the project is still underway.
The company has carried out monitoring of greenhouse gas emissions using the RSPO approved Palm
GHG. Data as seen in the Palm GHG Summary Report were as follows:
-
Emissions calculated from estates was 944.13 tCO2e for fertilizer manufacture and transport,
2519.28 tCO2e for N2O from fertilizer application, 231.62 tCO2e from fuel consumption and 448.39
from peat oxidation from a small area of sapric soil covering only 2.5 ha. Total estate emissions
was determined to be 4143.42 tCO2e, or 3.20 tCO2e/ha and 0.13 tCO2e/tonne of FFB produced
-
Emissions generated by outgrowers was estimated to be 17,691 tCO2e, or 1.72 tCO2e/ha and 0.07
tCO2e/tonne of FFB produced
-
Emissions calculated form the mill was 5603.82 tCO2e from POME, 772.36 tCO2e from fuel consumption, and -47025.26 for sale of PKS. Total mill emissions was calculated to be 9783.93 tCO2e
or 0.03 tCO2e/tonne of FFB produced.
-
Overal Final emissions value per product was determined to be 0.47 tCO2e/ tonne of CPO product
and 0.47 tCO2e/ tonnes of PK product.
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Criterion 6.1: Aspects of plantation and mill management 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:
The company has Approval of Decree UKL and UPL for Estate and Mill PT MSS number 660 /
Bapedalda / 319/2002 date September 14 th 2002, and report of Social Impact Assesment (SIA)
owned by PT Murini Samsam , conduct by Re.Mark, for assessment which was conducted on 14-18
April 2014. The report contains the impacts of the company to community, employee, and local
government, and covers positive and negative impacts with evidence of participation of local
communities and all affected parties.
The identifed impacts were as follows :
1. Economic Sector: Positive impact, i.e. there were increasing of income for farmers, traders, raising of
shop and store, food store and traditional market. The negative impact included decreasing of land
ownership at coastal area.
2. Socialcultural sector: Positive impact was occuring of assimilation in coastal villages and
transmigration villages. It was changes from primary sector into secondary sector and tertiery.
Occupation of time was more productive. Negative impact was the increase in human consumption
and higher dependency on external food production.
3. Environmental: Positive impacts are not yet experienced by people. Negative impacts include river
pollution, aridity, fire and fly dispersion.
4. Raising issues need to be address by management:
- Communication and information system was not effective.
- There was no clear information regarding to plasma development.
- Pollution on the river by mill waste.
- Fly dispersion related to mill waste.
- Low of manpower from surroundung villages accepted by the company and working accident
- Low education level
- Minimum medical resources and health care infrastructure in the villages
The company has a list of attendees of meetings held with stakeholders around PT. MSS on April 17,
2014.
In the report SIA PT MSS Chapter 6, there is a Management and Social Monitoring Plan.
The purpose of the Social Monitoring and Management Plan is to provide guidance for the implementation of the programs and / or activities of social management of the company so that its resources can
be focused in a more focused, integrated and effective in achieving the company's social vision. In the
context of the management of social impact and the development of relations with the communities, the
programs of social management in the form of management activities to achieve the vision of social enterprise are planned as follows: (1) management activities carried out in order to minimize the negative
social impacts and / or social risks, as well as which can develop positive social impact, (2) Management of social impact involving the parties who have a direct relationship that the parties giving and receiving impact, (3) Management activities conducted to strengthen social capital for social sustainability
of society (social sustainability) and (4) Programs / activities carried out shall be taken into account as
far as possible to have a direct relationship with the company's core competencies and business (core
business).
Recommendation management and social monitoring will be carried out by the company with consideration of time, human resources and costs. The management and monitoring plan will be communicated
to interested parties as a tool for monitoring the implementation of activities that had been recommended together. Monitoring and evaluation activities will also be carried out to obtain lessons learned as
feedback for improvement and implementation of social management plan next period (continuous improvement).
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While the basis for the preparation of a management plan social impact is also not solely based on the
social impact but also based on the aspirations of the community in the form of suggestion or xpectation, to create positive effects, and social risks of the parties affected by the presence and operations
of the company.
Social Monitoring and Management Plan is based on the results of the Social Impact Assessment studies, recommendations for how to carry out the management and social monitoring by the company are
presented in the Matrix for Management and Monitoring Plan. In accordance with the principle of social
adaptive management, all management recommendations must come from the various parties involved
in the management of the region where the company is located.
The summary of the SIA management and monitoring plan is as follows:
1. Human Relations: The management plan and CSR program for improvement in health in cooperation with the department of health - Extension and counseling pertaining to HIV, AIDS and sexually transmitted diseases
2. Economics: Training on business areas according to the potential area, improving the relationships with the surrounding community
3. Sakai tribe
Management Plan: Briefing of the importance of education, in collaboration with the local education office , cooperation with the department of fisheries, completing the teaching and learning facilities in Complex Project 10
PT MSS has not been monitoring the social impact of the results of the Social Impact Assessment Report in 2014, so there is no plan of improvement over the results of such monitoring if found discrepancies.
However the SIA report does not explain the analysis of resulting social impacts if growers plan for replanting. This was raised as an observation.
During the assessment audit found no recorded special attention to the impacts of outgrower schemes
because the company does not have cooperation with farmers or cooperatives. Hence this requirement
is not applicable.
Criterion 6.2: There are open and transparent methods for communication and consultation between growers and/or millers, local communities and other affected or interested parties.
Findings:
The Company has a Procedure for Communication, Consultation and Coordination with Stakeholders
No. PRO-BM-007 Rev. 01 dated August 1, 2015. The SOP was created as a technical guide for implementation of communication, consultation and coordination between the company and stakeholders
so as to be sure that every step of the decisions, actions, and implementation of activities related to the
stakeholders is accountable, effective, efficient, consistent and systematic so as to facilitate the operations of the company.
Description of Procedures:
1. The management assesses the feasibility of the inputs from the stakeholders and shall prepare a
response to be communicated, consulted and coordinated with stakeholders,
2. If requested, the company protects the confidentiality of the identity of depending on the sensitivity of the issue, the scale of the impact if the issue is published or the risk of retaliation.
3. Management of public announcements intended to respond to input or to seek the fulfillment of
the company's operational support to external parties
4. A communications team shall provide input to upper management to analyze operational support
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needs and formulate the content of the form of communication, consultation and coordination together as a form of corporate policy, management
5. Management approve or revise the formulation of the form and content of communication, consultation and coordination
6. The communications team performs the function of communication, consultation and coordination
in accordance with the development policy that has been decided and reports the results of
communication, consultation and coordination to management.
There are records of communication, consultation and coordination activities held with stakeholders.
Available Decree No. 171 / KEBON-MSS / IX / 2014 dated December 12, 2014 which was passed by
the company management on the establishment of the Public Communications team of PT. Murini
Samsam appoint and define:
1. Priadi and Arismardi and J. Siagian as a Communications teams leaders for PT MSS
2. Indasril as a team chaperone field of employment.
3. Indasril as chaperone field of Community Development.
4. Hirasman Tanjung as a chaperone field of environment and K3.
5 Irwansyah and Beni Safari as a team chaperone field Mill / Factory
The communications team is responsible for:
1. Analyzing stakeholder input or operational support needs of the company and formulating the
form and content of communication, consultation and coordination that will be presented to
stakeholders
2. Confirming the formulation of the form and content of communication, consultation and coordination, to management
3. Running the function of communication, consultation and coordination, according to the type of
input or operational support to meet the needs of companies
4. Reporting the results of communication, consultation and coordination to management
The company has a list of stakeholders (Entry List of stakeholders) consisting of
1. Stakeholder areas of government: the District, District, village / hamlet.
2. Stakeholder Indigenous People / Density Adat (KAN) Region District of Uptown
3. Non-Governmental Organization (NGO) and related organizations
4. Company Core Institutions Cooperative Organization Partners
5. Suppliers of Raw Materials (FFB)
6. Contractor supplying to the Company
7. Supplier / General material Suppliers & Service
Criterion 6.3: There is a mutually agreed and documented system for dealing with complaints and
grievances, which is implemented and accepted by all parties.
Findings:
PT MSS already have procedures Communication, Consultation and Coordination with Stakeholders
No. 007Rev PRO-BM-01 dated August 1st 2015 with the aim of:
System Operating Procedures created as a technical guide implementation of communication, consultation and coordination between the company and stakeholders so as to be sure that every step of the
decisions, actions, implementation of activities related to the stakeholders accountable, effective, efficient, consistent and systematic so as to facilitate the operations of the company ,
Description of procedures:
1. The management assesses the feasibility of the inputs from the stakeholders and shall prepare a response to be communicated, consulted and coordinated with stakeholders,
2. If requested, the company protects the confidentiality of the identity of depending on the sensitivity of
the issue, the scale of the impact if the issue is published or the risk of retaliation.
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3. Management of public announcements intended to respond to input or to seek the fulfillment of the
company's operational support to external parties
4. A communications team shall provide input to upper management to analyze operational support
needs and formulate the content of the form of communication, consultation and coordination together
as a form of corporate policy, management
5. Management approve or revise the formulation of the form and content of communication, consultation and coordination
6. The communications team performs the function of communication, consultation and coordination in
accordance with the development policy that has been decided and reports the results of communication, consultation and coordination to management.
During this audit, there were not cases of ongoing disputes; hence there were no records of results of
the dispute settlement process.
Criterion 6.4: Any negotiations concerning compensation for loss of legal or customary rights
are dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions.
Findings:
PT MSS has an SOP on Land Acquisition, i.e. PRO-BM-001 dated November 1, 2013.
The SOP is defined as the standard procedure used to ensure that the decision or action in the process of land acquisition for the benefit of industrial oil palm plantations is done properly and correctly in
accordance with the rules and laws and regulations that apply specifically to land-related interests of
the community and communal/ customary land.
There is a clause on
• Information or land acquisition plan submitted to the relevant parties, among others, Local Government, Public Social Institutions, Traditional institutions and public figures related to customary law
• Inventory and field research that describes the location to be acquired by way of a special coordination with indigenous community leaders / village and with the village administration
• Payment of compensation of land owned by indigenous communities / villages where a compensation fund is prioritized for the sake of social or infrastructure development for the village in accordance with the agreement stipulated. For arable land / group with compensation for destroyed crops,
indemnity done for and on land / land and for crops or in the form of compensation expense over
the process of cleaning / clearing will be done for the previous land owner.
The contents of these procedures include:
I. The Basic Law
II. Status of Soil / Land to Backup
III. Land acquisition policy
IV. Implementation of land acquisition
1. Phase Research, verification and inventory data / facts
2. Phase compensation fund Filing / land acquisition
3. Phase research / verification of payment documents
4. Phase payment of compensation / damages
5. Phase Document Storage
During this audit, there have been no parties identified who are entitled to receive compensation for the
concession company land and no compensation claims in progress.
Criterion 6.5: Pay and conditions for employees and for employees of contractors always meet
at least legal or industry minimum standards and are sufficient to provide decent living wages.
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Findings:
There are a list of wages of employees of PT MSS. The payment of wages is in accordance with:
1. Regulation of the Governor of Riau No.Kpts 244 / III / 2015 2015 Minimum Wage Sub Sector Agriculture / Plantation Oil Palm and Rubber Plant amounted Rp.2.125.000, - dated March 31,
2015
2. Internal Memorandum No. 001 / HRGA-IM / IV / 2015 dated April 1, 2015 which states the minimum wage per employee Daily 01 January 2015 is set at Rp. 2.1255 million, -, / month or Rp. 85
020, - / day.
Based on the evidence recorded paycheck in September 2015:
1. Sample pay slip of employee paid Daily Fixed Basic Salary of Rp. 2.1255.000, - the Take
Home Pay Rp.2.492.567, - after deducting the Social Security contributions, PBJS and others
2. Sample pay slip of employee paid Daily Release Basic Salary Rp. 85.000, - per day
3. Sample pay slip of employee in Admin Position MCC PT MSS Basic Salary Grade 2B
Rp.1,786.625, - fixed allowance of Rp 672 332, - so Total Wages: USD. 2,458,957, There is a list of payment of wages of employees of PT MSS Estate Month in October 2015 consisting
of 227 employees.
The estate has a documented book on PT MSS Company Regulations (for Estate) in 2014 to 2016
which is in accordance with the Decree Ka Manpower and Transmigration Bengkalis District Number:
41 / KPTS / DTKT-PHIJ / 2014 regarding the Company PT Murini Samsam Regulation, which was
signed by the Head of Department of Labor and Transmigration Bengkalis on 10 September 2014. Evidence of briefing of the company regulations to employees in PT MSS estate was done on September
16, 2014, the location of the meeting room PT MSS, Mr. Indasril carrier content, and number of participants: 20 people
A book of PT MSS Company Regulations (for Palm Oil Mill) 2015-2017 is also available and prepared in
accordance with the Decree of the head of the Department of Labor and Transmigration Bengkalis District
Number: 26 / KPTS / DTKT-PHIJ / 2015 on the Company PT Murini Samsam Regulation, which was
signed by the Head of Department of Labor and Transmigration Bengkalis on 13 April 2015
Evidence of briefing of Company Rules for Employees of the palm oil mill by distributing of Pocket Book of
Company Regulation period 2015 - 2017 to each unit were sighted in records of briefing as follows:
1. Administrative staff: attended by 25 people was conducted on June 23, 2015.
2. Process workers: A total of 35 people attended conducted on 24-25 June 2015
3. QC / Labour: attended by as many as 9 people conducted on 23-27 June 2015
4. Maintenance workers: was attended by 19 people conducted on 23- Date June 2015
5. Sortation workers: attended by as many as 19 people conducted on June 24, 2015
6. Security personnel: was attended by 18 people conducted on 23-29 June 2015
7. Employees at Process B was attended by 36 people conducted on July 2, 2015
PT MSS has a list of facilities and infrastructure for employee benefits such as: Mess G1, Housing staff,
Emplastment Housing, Housing Employee, Hall, houses of worship, mosque, soccer field, volleyball court,
a daycare, and school bus which are all in good condition.
Housing employees get clean water from wells made by the company, the source of the water has been
laboratory tested to ensure that the water was fit for consumption employees. During the dry season there
is difficulty in water supply, so the company provides water to the homes of each employee.
The plantation and mill area are near the market so it is easily accessible by employees for access to decent food, reasonably, and at an affordable price.
There is available a labor agreement with the contractor: SPK No. 034 / SPK-MSS / X / 2014 dated October 8, 2014 between the management of gardens with Basma Adam Lopez CV Tuah Monex Jaya hamlet
Sukamaju Village Edge, type of work Preparation 1 housing unit type G-10 (10 doors) size of 510 m2, a
period 90 working days since the signature of the contract. Stated under Clause in Article 6 of the agreementy in paragraph 3 that the second party is solely responsible for the terms of employment are regulated in labour law and OSH and environmental agreement between the company and the contractor regard-
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ing compliance with OSH and the environment laws and regulations to contractor. Proof of payment is
available to resume work Monex Tuah Jaya dated August 15, 2014.
Performance evaluation documents for subcontractors (FM-GEN-042) are available and were conducted
on all sub contractor PT MSS in 2015, for example: Subcontractor Performance Evaluation Monex CV
Tuah Jaya was done on August 1, 2015 for the work of constructing the child care centre. One of the
evaluation items under no. 3 is regarding completeness and feasibility of human resources / equipment
which was graded as 10, while the use of PPE scored 8.
At the mill, there is also available agreements with the contractor: SPK No. 001 / SPK / MSS-POM / V /
2015 dated May 1, 2015 between the MCC with CV Dwi Jaya Lestari Jaya for work on Blowdown Chamber addition, with working period of 20 days after the employment contract. Section 4 describes the fulfillment of the provisions of article 8 of the Labour work fulfillment of OSH and the environment. Proof of
payment date of June 10th, 2015 with the transfer receipt from the bank to the account of CV Dwi Jaya
Lestari.
Performance evaluation documents are available for subcontractor (FM-GEN-045) which were all conducted on all sub contractor PT MSS MCC in 2015, for example: Subcontractor Performance Evaluation
of CV Dwi Jaya Lestari was conducted on June 9, 2015 for the work of addition of Blowdown Chamber.
Evaluation item No. 3. Regarding completeness and feasibility of HR / equipment owned was graded as
85%, while item no. 6 regarding discipline on the use of PPE scored 8, for total value of 87%.
Criterion 6.6: The employer respects the right of all personnel to form and join trade unions
of their choice and to bargain collectively. Where the right to freedom of association and collective bargaining are restricted under law, the employer facilitates parallel means of independent
and free association and bargaining for all such personnel.
Findings:
Provisions governing the existence of worker unions are described in Internal memo from Human Resources Development Head No. 001 / WIP-HRR / Intl-II / 2014 dated February 20, 2014 regarding labour. The policies outlined in the memo include where the company guarantees every employee the
freedom to form and join trade unions or union in accordance with the applicable legislation.
That Estate and Mill currently no longer have a union, according to information on the results of interviews with employees of PT MSS and the Vice Chairman, the employees do not feel there is a benefit
to the establishment of Worker unions and the board does not can no longer take care of this union, so
that the organization is dissolved with the agreement of members and the company instead established
a bipartite system which then resolve the problems that exist.
Based on interviews with some workers still want the formation of unions so that their rights are protected. The company should cooperate with the employee for the re-establishment of a Worker Union.
Criterion 6.7: Children are not employed or exploited. Work by children is acceptable on family
farms, under adult supervision, and when not interfering with education programmes. Children are
not exposed to hazardous working conditions.
Findings:
Regarding to working children, there was company’s policy in circular no. 002/GM-RMM/IV/2014 for
worker protection and prohibiton, valid since 11 April 2014. In this circular it was stated as follow :
1. The company only accepts adult worker (18 years minimum age or married).
2. Workers are prohibited to bring children to work.
3. Children between 13-15 years old are allowed to do light work as long as not interfere his
physical, psychological and social development.
4. Estate divisions which accepts this kind of working children as point 3 above shall be accompanied with requirements as below :
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-
Written permit from parrents.
Working agreement between company and parrents.
Longest working hours is 3 hours per day.
Environment condition do not interfere with his physical, psychological and social
development and school time.
The company has list of workers for 2014-2015. From this list it was found that all workers are more than
18 years old. There was no worker under aged or between 13 and 15 years old. So, there was no worker
currently that needs to be accompanued with written permit from the parrents. Based on interview and
observation in the field found that the company complies to regulations regarding worker’s minimum age.
Criterion 6.8: Any form of discrimination based on race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliation, or age, is prohibited.
Findings:
Available Policy on Equal Opportunities -Wilmar International endorsed by Goh Ing Sing (Group Plantation Head) on September 2010 which supports the principles of fairness and non-discrimination, and
aims to treat each person with respect, be free from unlawful discrimination and work ethically. The aim
is not to discriminate against gender, caste, ethnicity, disability, sexual orientation, age, or beliefs but to
develop a global workforce that has abilities to perform assigned tasks based on an objective assessment.
Internal Memorandum No.001 / WIP-HRR / Int-II / 2014 Conditions of Employment dated 20 February
2014 on Equal opportunities for employees "The company upholds professionalism and ensure the absence of discrimination on the basis of race, color, gender, religion, political beliefs , nationality, or
origin of which results negate or reduce equality of opportunity or treatment in employment or occupation.”
Evidence of equal treatment in working opportunities for workers could be seen on worker list which
shows that all workers come from different race, nation, gender and religion. Based on interview and
fielld observation it was found that there was no discrimination to the worker regarding to this
opportunity
Based on the list of employees in October 2015
Estate:
Number of employees 227 people, employee list contains the following information: Name, occupation,
sex, class, tenure, identification card number, place of birth, date of birth, place of origin of labor, family
status, religion, ethnicity, education.
Ratio comparison of the number of workers Men and women are: 182 workers Men: 45 female workers
(80.2%: 19.8%).
Ratio comparison of the number of workers coming from Malay (Native) only amounted to 4 people, the
majority of labor originates from the tribe of Batak, Javanese, Minang.
Mill:
Number of Employees 157 people, where employee list contains the following information: Name, Division, department, section, class, work start date, gender, marriage status, date of birth, level of education,
religion. Ratio comparison of the number of workers with are men and women are: 150 workers Men: 7
female workers (93.5%: 4.5%).
Ratio comparison of the number of workers coming from Malay (Native) only amounted to 4 people, the
majority of labor originates from the tribe of Batak, Javanese, Minang.
Based on the results of the study documents the company has adequately implemented their policy on
equal employment opportunities.
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Criterion 6.9: A policy to prevent sexual harassment and all other forms of violence against
women and to protect their reproductive rights is developed and applied.
Findings:
There is a company policy on Sexual Harassment, Violence Abuse and Reproductive Rights, which was
ratified by the GPH Goh Ing Sing (Group Plantation Head) up date in June 2014 which states that Wilmar
International strives to create a conducive working environment characterized by equality and mutual respect. For that purpose, a sexual harassment policy was developed to encourage reporting of all events
of sexual abuse experienced by each individual with no exception of gender and age as a result of his ties
with the company.
The policy is supported by the Internal Memorandum No.001 / WIP-HRR / Int-II / 2014 regarding Conditions of Employment dated 20 February 2014 on the Employment Provisions point 4. Prevention and
Suppression of Sexual Violence Against Women: With the principle of unity of rights and obligations of
each worker to the protection of health and safety, morals and decency, treatment in accordance with the
dignity manuasia and religious values, all employees are required to maintain decency and safety while at
work and prohibit any element of sexual harassment and oppression of women.
It is stated in the Policy on Sexual Harassment, Violence Abuse and Reproductive Rights, that reproductive rights are legal rights and freedoms related to reproduction and reproductive health for which
an individual is:
a. To decide freely and be responsible to, age, distance, and number of their children
b. To make a decision regarding reproduction which shall be free of discrimination, coercion and violence?
The rights of women workers at PT. MSS are guided by the vision and mission as well as Law No. 13
of 2003 on Labour, it is hereby informed that for women workers:
1. During the menstrual period. It is the obligation of each employee to ensure the protection of women
workers from the menstrual period pain based on company notification and medical certificate, women
during their periods are not obliged to work on the first day
2. Pregnant and breastfeeding women. In connection with pregnant and lactating women workers who
are at risk of contamination of their infant / child or impact trauma to the fetus in pregnant women. They
are forbidden to be employed for all types of jobs related with chemicals (pesticides spraying, fertilization, work in the warehouse of chemicals, etc.). Women workers in question should be moved / transferred to temporary work to the types of work where they are not at risk of contamination and impact.
3. Maternity leave. The company uphold the laws in force, in which the company 'prohibits the employment of pregnant women workers by giving maternity leave for 1.5 months before the time of delivery
and 1.5 months after giving birth, according to calculations by the obstetrician or midwife. For women
workers who had a miscarriage, they are entitled to 1.5 months leave in accordance with the certificate
from the obstetrician or midwife.
A gender committee has been established recently, which consists of head of committee, secretary,
and members. The function of this committee is as an official institution for the worker to report any
case of sexual harassment or violence against women experienced
The organizational structure of the Gender Committee could be improved further to include representatives from all areas of employment, while counseling and training pertaining to women's rights should
be carried out. This was noted as an observation.
There are records of a briefing done by the gender committee dated 20 April 2015 at PT MSS estate,
Block O11 with participantion of 23 employees. The agenda of the meeting was to discuss the briefing
committee of gender while explained the functions and duties of the principal one of which is to disseminate information to all women workers in company, providing explanations and knowledge of legislation relating to sexual violence. Documentation on gender committee briefings conducted are available. There are also records on briefing on Reproductive Rights for 174 employees at PT MSS estate
done on 5 November 2015.
There are records of the Gender Committee's work program in year 2015, which includes the program
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on:
1. Briefing on the Gender Committee and prevention of sexual harassment for employees of the estate
2. Briefing on the Gender Committee and prevention of sexual harassment for employees of Mill
3. Briefing on Reproduction Rights
4. Documentation of gender committee meetings every month
Sample completed forms for maternity leave taken from the date of December 1, 2014 - March 1, 2015
using the application form Leave (FRM-HRD-002) and approved by the head unit estate were sighted.
Women workers are also permited to leave work to breastfeed as seen from sample completed forms
dated 02 October 2015. Breastfeeding breaks are permitted from 09:45 am to 09:55 am and 14:45 pm
until 14:55 pm. Should Form breastfeeding employee has permission list number, date of issue, date of
revision so that a company official form. The register form for list of breastfeeding women workers
should be revised to include a document number, date of publication, and revision date such that is becomes an official company document.
Compliance status: : Compliance with observations
Criterion 6.10: Growers and mills deal fairly and transparently with smallholders and other local
businesses.
Findings:
The price of FFB is decided by the company management. Example prices set are as follows:
On 1-2 October 2015, the price was set at Rp. 870 / kg
From September 3 - October 2015, the price was set at Rp. 890 / kg
Up to the time the audit ended on November 5th 2015, the price was set at Rp. 1,050 / kg
There was mechanism for price determination which is done according to SOP no. SOP.Dir.MKT-01
where prices are subject to pricing flowchart mechanism as follow :
1. Analysis of CPO and kernel market biding price which is affected by several parties such PT
Kharisma Pemasaran Nusantara, Astra Group, Malaysia market effect, and State Plantation
Division of Sumatra Utara Province
2. Analysis of price of FFB from competitors.
3. Analysis of last FFB purchase price
The company also has an FFB purchasing procedure No. 001 / TBS-SOP / VIII / 2015 dated August
10, 2015, for purchase of FFB from external parties. This SOP is to ensure that FFB purchasing activities are conducted properly and are verifiable in terms of continuity, time and the quality of palm fruit
were purchased and to ensure no errors or deviations in the purchasing activities of FFB. The SOP
stipulates the following:
FFB Purchase Price:
1. Purchase of FFB should be guided by the Cost of Purchasing of FFB with regard to overall market
conditions
2. If the purchase price exceeds the cost of processing of FFB, then the purchase transaction is subject to approval by the Head of Commersial.
Calculation of Cost of Purchase:
1. The calculation is done every day by the logistics section at the district office.
2. Calculations on cost of purchasing are guided for purchase of FFB based on data on CPO price /
PK, processing costs, yield, and freight into the computer formulations that have been set and confirmed.
3. The results of calculation of the cost of purchasing are informed to the Operations Department of the
Office of the region on the same day.
Sighted a sample contract purchase agreement TBS No. 003 / MSS-MCC / TBS / I / 2015 dated 2015
02 January between the management of PT MSS with the FFB supplier, Pahala Efendi Pandiangan
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owned by SP Brother Sungai Meranti. The supplier provides FFB supply in accordance with the provisions of the company's criteria, namely Quality Standards for FFB as follows:
1. FFB sent are ripe, not rotten and do not consist of empty husks
2. FFB bunches each weigh 8 kg and above
3. The FFB stalks do not exceed 3 cm
PT MSS mill will make payments less than 3 (three) days after delivery and the agreement is valid for
12 months. Sighted evidence of payment for deliveries done on 27-31 October 2015 for as much as
38,916 kg x Rp. 1,131, or Rp. 44,013,996, while for FFB delivered on 2 November 2015, payment was
as much as 12,543 kg x Rp. 1,131, or Rp. 14,186,133.
FFB sent to Mill should have a guarantee of legality issued by the supplier as a guarantee that the FFB
was not derived from plantation forest encroachment. Mill PT MSS verified this with the supplier
through working visits and requesting suppliers to fill out working visit forms with contains the following
required information: name of the supplier, the location, the coordinates, year of planting, yield estimates, notes legality, recommendation.
Criterion 6.11: Growers and millers contribute to local sustainable development wherever appropriate.
Findings:
Available Program and Budget records CSR MSS 2015 such as:
1. The provision of 2 units of computers to SMU 1 Basung Muara District as Rp. 10,000,000, 2. The provision of infrastructure and facilities Musholla Worship Police Station Sukamaju Pinggir district worth Rp 10,000,000, 3. The provision of nine basic foodstuffs to the Regional SP 10 (Sakai tribe) Sam-sam river bank as
much as Rp. 5,000,000, Other CSR activities in year 2015:
Estate:
1. The provision of soil compacters to SDN 20 Uptown district on 23 September 2015
2. Provision of bricks of 7,000 pcs to Madrasyah School (MI) YLPI Mujahideen for the construction of
school toilets on September 1, 2015
3. The provision of a loan of heavy equipment for road repair new village RW RT 007 002 Pangkalan
Libut village on 28 September 2015.
4. Assistance for the construction of the Darul Hikmah mosque Hamlet Sukamaju Sei Meranti.
5. Provision of lending heavy equipment to clean up the site office Pangkalan Village Head Libut on 12
September 2015.
Mill:
1. Provision of 10 bags of cement for the construction of the mosque of Mujahideen on March 6, 2015
2. Granting 1 piece signpost for use in the Office of BPD Sungai Meranti Uptown district on 14 April 2015
3. Provision of one set of volley poles for sports activities in rural water Pamessi Betuah Pinggir district
dated May 4, 2015
4. Help for renovation of Traffic Police Station at Pangkalan district Libut district Pinggir dated June 5,
2015 with provision of Rp. 4.972 million, 5. Help providing clean water to communities in drought in the base village libut district Pinggir on September 4, 2015
6. The provision of one head of cattle for sacrifices in the village worth Rp.12.170,000 on 23 September
2015.
7. Borrowing heavy equipment for road improvements along the 1 km in water hamlet at Pamesi District
Pinggir on 19 October 2015.
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Criterion 6.12: No forms of forced or trafficked labour are used
Findings:
As confirmed from interviews with workers on-site and sample checks of work contracts, there is no evidence of illegal labour being used and no evidence of contract substitution. All manual labourers are local
with no foreign labour employed.
Criterion 6.13: Growers and millers respect human rights
Findings:
Wilmar Group has a Human Rights Policy which states the following:
Wilmar Int Limited, as Asia's leading agribusiness group conducts its business responsibly and ethically. Wilmar aims to respect and protect the human rights to personal security free from harassment or
abuse of any kind, safe, clean and healthy workplace and environment.
1. Human Rights in WILMAR includes two key aspects, which are:
a. The rights of workers
a. Freedom of association
b. There is no forced or bonded labor
c. No child labor
d. Working conditions shall be conducive
2. Rights of Indigenous and Local Communities
a. To respect the rights of land ownership
b. Committed to Free, Prior and Informed Consent (FPIC)
c. Committed to an openness, transparency, and fairness in resolve conflicts.
The Human Rights Policy is made as it placed on the notice board at the office of the estate and
office mill for easy viewing by workers and other stakeholders.
Principle 7: Responsible development of new plantings
Findings:
This principle is not applicable as there have been no new plantings carried out by the company. The
youngest planted area was in year 1996, with no areas planted since.
Compliance status: Not applicable
Criterion 8.1: Growers and millers regularly monitor and review their activities and develop and
implement action plans that allow demonstrable continuous improvement in key operations.
Findings:
The company has developed plan to reduce chemical usage, environmental impacts, to reduce and
properly manage waste and to reduce pollution and emissions, as seen in their Waste Identification
and Management Plan for year 2015 (see further details under CR5.3) and Management and Monitoring Efforts Matrix for Mitigation of Greenhouse Gases in year 2015 (see further details under CR5.6).
The company has plans to build a methane capture plant in 2016.
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The company also carried out reporting on implementatin of their UPL/UKL document to the local environmental department once every 6 month, in accordance with local legal requirements. The latest report for Semester 1 of year 2015 for the estate was sighted, with evidence of distribution and receipt by
the local environmental department and plantation authoritative body of Bengkalis on 3 September
2015. The report includes an update on various activities carried out by the estate to reduce environmental impacts in areas such as fertilizer application, pest management, waste management, security,
office and housing operations, and workshop. Other aspects reported include ambient air quality,
groundwater quality, waste collection, water biota sampling and analysis, road damage, social economic aspects such as hiring of workers and FFB and EFB transport (which can impact water and air quality), as well as impacts to community health due to fertilizer application, and FFB and EFB transport.
For each of the areas above, monitoring activities are also conducted and reported to determine effectiveness of activities conducted.
The mill also carries out reporting on UPL/UKL activities once every 6 months as seen from the latest
report for Semester 1 of year 2015 and the report of implementation for Semester 2 of year 2014. The
implementation report includes results ambient air quality, boiler emission quality, palm oil mill effluent
quality, soil quality of land application area, noise levels, and scheduled waste production records. The
environmental management and monitoring activities covered in the report include:
A) Waste management: EFB and shell
B) Decrease in Air Quality:
- Emissions from machines: Vehicles, boilers, generator, and production machines
- Ambient aitr: Boiler, genset, mill machinery, vehicles
- Noise: Process, sterilizer, boiler, genset, engine room, mill machines
C) Decrease in water quality
- Mill effluent: effluent ponds and land application
- Domestic liquid waste: domestic office activities
- Hazardous wastes: workshop and maintenance
D) Impacts to road
- Dust: loading ramp, lifting and mobility
E) Biological compponent
- Impact to flora and fauna: Mill operational activities
F) Social, economic and community health component
- Job opportunities and business opportunities
G) Environmental health: Mill operations
Results monitoring and test certificates of analysis carried out are reported in the UPL/UKL reports accordingly.
In addition, PT Murini Samsam estate has a documented Environmental Improvement Plan for year
2015, which covers activities to reduce domestic waste separation, and HCV management and monitoring. The program is updated monthly to indicate status of activities carried out and the estate also has a
form for monitoring of achievement of objectives and targets. The estates has program to reduce pesticide usage and other restricted agrochemical materials.
The mill also has an additional documented list of Environmental Objectives and Targets for year 2015,
including progress of implementation. The list includes activities for improving environment management
by reducing usage of fossil fuels to 0.79%/tonnes FFB, maintain water usage at 0.184 m3/tonnes FFB,
and prevention of pollution resulting from spillage of mill effluent to the field through regular pond cleaning distribution for land application, installation of underflow pipes from pond 6 to pond 7 and regular
housekeeping. The mill must continue to ensure these activities are implemented as it was observed in
the field that the effluent ponds were near overflowing levels after only one day of rain. This was noted
as an observation.
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•
RSPO Supply Chain Certification System (SCCS)
The company has opted to be certified against SCCS requirements Module E for CPO Mills: Mass Balance.
The findings pertaining to implementation of the standard are described below.
E.1. Definition
Findings:
PT Murini Sam-Sam Palm Oil Mill (POM) receives FFB from their own company-owned estate, i.e. PT
MSS Estate and from third party independent suppliers which are not within the certification scope. As
466 ha of the estate is also not within the certification scope as the HGU for this area has not been received by the company, the mill is only claiming for certified FFB received from 967ha of the estate.
E.2. Explanation
Findings:
The estimated tonnage of CPO and PK products that could potentially be produced by the certified mill
has been defined under table 3 of this report. As verified during this certification audit, the estimated
certified tonnages based on actual production from the approved HGU area of PT Murini Sam-Sam estate is 4,333.88 tonnes of CPO and 1,089.62 tonnes of PK.
The mill has not yet registered to the RSPO IT platform as they are still not certified and have not carried out any transactions yet. Compliance to registration and reporting requirements through the RSPO
IT platform will hence only be checked during the next surveillance audit.
E.3. Documented procedures
Findings:
The mill has documented procedures for supply chain as follows:
1) SOP Supply Chain - Mass Balance SPO-LOG-005 dated 1 June 2014, revision: 02
2) SOP Traceability SCCS - SOP-LOG-006 dated 5 November 2015, revision:003
The SOPs above covers procedures for receiving and processing certified and non-certified FFBs. The
mill’s supply chain procedure for Mass Balance defines the responsible mill personnel to implement the
Supply Chain certification system and their responsibilities, e.g.:
- Mill security is responsible to record all receipt and despatch of certified sustainable palm oil
(CSPO)/ non-certified sustainable palm oil (NCSPO) and certified sustainable palm kernel (CSPK) /
non-certified sustainable palm kernel (NCSPK).
- Weighbridge is responsible to record the weight of all FFB received and despatched, and ensure all
FFB received and report on despatch of CSPO/NCSPO and CSPK/NCSPK is in accordance with
the RSPO SCCS and ISPO requirements
- Logistics is responsible to calculate production of CSPO/NCSPO and CSPK/NCSPK, despatch and
to report this data in production and despatch reports and traceability report
- Sortation is responsible for FFB grading and ensuing grading reports for FFB sorted are prepared
- Senior Admin Offer is responsible to control the receipt of FFB, CSPO/NCSPO and CSPK/NCSPK,
FFB receipt reports, despatch, CPO delivery reports and traceability reports
- The Mill Manager is responsible to ensure to the overall process
The mill’s SOP for tracebility is similar to the mass balance procedure, and includes additional requirements to prepare a traceabilility report to the mill manager. Logistics is also responsible to carry
out stock closing/balancing in e-Trace once a month, in coordination with the Sustainability team based
in Jakarta.
It was noted during the audit that the SOPs did not define ensure how crop from certified blocks with
approved HGU would be differentiated from non-certified blocks which are not within the certification
scope. The mill took immedate action to revise the SOP for traceability with additional information that
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the logistics personnel is responsible to ensure that delivery notes of FFB received from certified estate blocks are appropriately stamped as ‘sustainable’, and that those that are stamped are listed in the
mass balance sheet as certified FFB.
The mill has nominated the Senior Admin Officer as the management representative for overseeing the
implementation of the entire supply chain process and as well the person-in-charge for traceability, as
seen from letters dated 6 September 2014 issued by the Mill Manager
There is evidence of training done for the mill personnel responsible for implementation of the Supply
Chain Certification System, as seen from training record on P&C RSPO 2014, SCCS 2014 and ISPO
requirements dated 9 September 2015. The record included a summary of training topics, including:
- The background of RSPO P&C and SCCS,
- The supply chain options, with focus on Mass Balance,
- Required documents in order to comply with the RSPO Supply Chain Standard, pertaining to
receipt of raw material and despatch of material
- Outsourcing activities
- Claims
- Training
Attendance list of the training showed that there were 9 participants, including the mill manager, Senior
Admin Officer, personel officer, EHS officers, and sustainability officers. However the training did not
include all personnel responsible for the implementation of the SCCS system, such as personnel at
weighbridge, logistics, and sortation. The mill took immediate action by conducting a briefing on 5 November 2015 for 14 personnel, including weighbridge operators, logistic officers, sortation, security,
process, admin staff and EHS officers. The briefing also included an explanation on the updated made
to the SOP for traceability regarding to stamping of delivery orders of FFB received from certified estate blocks.
The estate also has SOP for FFB Transport – PRO-WSH-0022 dated 1 January 2014, revision 001,
which is applicable in the SCCS implementation as the estate is responsible to ensure that FFB from
HGU approved blocks and non-HGU blocks are correctly identified as sustainable and non-sustainable
respectively prior to being sent to the mill. During the audit it was noted that it had not yet specified
how the estate would ensure crop from certified blocks with approved HGU would be differentiated
from non-certified blocks which are not within the certification scope. The estate management took
immediate action to revise the procedure, and the revised procedure stated that that estate security is
required to stamp the FFB Delivery Notes for all crop from certified blocks no. 004, 005, 006, 007, 008,
010, 011, 012, 013, 014, 015, 016 and 017 as sustainable, while those received from non-HGU blocks,
i.e. blocks 001, 002, 003, 004B, 005B, 007B, 008B, 009B, 010B, and 011B are not to be stamped.
A briefing was immediately conducted by the estate on 5 November 2015 for 17 estate personnel responsible for stamping of delivery notes from sustainable and non-sustainable blocks, i.e. security,
transport clerk, FFB transport drivers and mandores.
The stamps to be used by the estate for indicating sustainable crop and for the mill to indicate mass
balance status of certified CPO and PK is still not available and only will be prepared after the company has received their RSPO certificate so that the certificate number is indicated on the stamps. This
will be verified during the next surveillance audit.
E.4. Purchasing and good in
Findings:
The mill’s procedures for verifying and documenting the volumes of certified and non-certified FFBs received is as described in their SOPs for Mass Balance and Traceability as explained in E.3 above. All
data on FFB received from certified and non-certified sources and CPO & PK despatched is recorded
in a daily basis in a Daily CSPO Production Record, which is then summarized in a monthly basis in
an excel template (mass balance sheet) for CPO Products Daily and Monthly Movement Summary Report. The current mass balance sheet template has not yet been used since the mill has not yet been
certified. As seen from the template, the data required to be input, included FFB received from the estate’s HGU area (certified), non-HGU area (non-certified) and outsiders (non-certified), FFB processed,
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CPO production, OER, non-sustainable and sustainable production, non-sustainable and sustainable
despatch, non-sustainable and sustainable stock and total stock.
The mill has a documented procedure, i.e SOP-LOG-007 regarding Information on Projected Overproduction. The procedure specifies that the mill is required to report to the certification body if there is
any overproduction of certified material beyond the specified certified tonnages.
E.5. Record keeping
Findings:
The site has established a mass balance sheet for CPO Products Daily and Monthly Movement Summary Report in which the format requires that all receipts of RSPO certified FFB and deliveries of
RSPO certified CPO and PK is recorded and balanced on a three-monthly basis
As the mill does not carry out palm kernel crushing, there are no sales of palm kernel oil from the mill.
It is specified in the mill’s SOP for traceability, SOP-LOG-005, that the site can only deliver Mass Balance sales from a positive stock. As there are no transactions of CSPO done by the mill yet, implementation will be verified during the next surveillance audit.
The mill does not outsource activities to an independent (not owned by the same organization) palm
kernel crush.
3.2 Identified Non-conformances, Corrective Actions Taken and Auditors Conclusions
A total of one (1) nonconformances were identified during the main certification assessment. These consisted
of no major non-conformities and one (1) minor non-conformity. The company has taken corrective action
against the non-comformance raised, and implementation of the 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 Principles & Criteria (P&C)
Indicator 1.3.1: There shall be a written policy committing 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 01 of 01 (Minor non-conformity):
Correction:
To follow up with the Human Resources Department who will publish the policy. Person-in-charge is
the Sustainability Manager
Corrective Action:
To ensure the ethical conduct policy under the name of Wilmar Group is prepared and properly maintained.
Auditor Conclusions: Corrective Action plan was accepted. Effectiveness of implementation to
verified at next audit.
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•
RSPO Supply Chain Certification System (SCCS)
No non-compliances raised
3.3 Noteworthy Positive Components
No.
1.
2.
3.
Related
Observations / Opportunities for improvement
clause
Good commitment from company for to comply with RSPO requirements observed
throughout the audit, and staff was cooperative and efficient in providing documents for
review.
5.6
The mill has a plan to implement a methane capture project in year 2016 and has allocated a budget for this activity
4.7.2
A panel room for the generator operators is a good engineering measure to reduce noise
exposure for genset operators in addition to the provision of the existing PPE.
3.4 Issues Raised by Stakeholders and Findings Pertaining to Issues
Issues Raised during Stakeholder Consultation Meeting
No.
Management Response
Audit Verification
1.
There is a problem of effluent
discharged into the river. This
problem is not only with PT
MSS but with some other
companies. This has caused a
shortage of fish that die due to
pollution
Issues Raised
1. MCC Murini Sam Sam
currently implements Land
Application and is no
longer discharging effluent
into water bodies (river)
2. The company conducts
regular monitoring in accordance with the quality
standards of effluentwastewater
3. The company always
regularly carries out
maintenance and care of
effluent treatment ponds
so that they do not overflow into the river
2.
Request from several heads
of villages, including the Suka
Maju Village, Balai Pungut Village and Pangkalan Ribut Village:
Request for the company to
be more transparent about labour requirements and provide job opportunities for local
people from the outskirts of
villages, e.g. manual labor in
plantations. When there are
vacancies, these should be
made public in an open and
transparent manner.
1. PT.MSS is currently hiring workers who live in the
village of Sei Meranti and
Pangkalan Ribut. It can be
viewed from their ID cards
that they are living in Sei
Meranti Village and
Pangkalan Ribut Village.
In was confirmed that the mill no
longer discharges effluent and only carries out land appplication.
The mill conducts sampling of effluent BOD5 (outlet pond no.6 and
7) with tests conducted externally
(Unit of Technical Implementation
for Materials Testing Laboratory.
Riau Province Government).
Sample results show (period of
April 2014 to June 2015) that effluent BOD5 for land application is
below 5,000 pm as required in the
mill’s land application permit
No.156/KPTS/III/2011 dated 31
March 2011 which is valid for 5
years. However, it was observed
in the field that the effluent ponds
were near overflowing levels after
only one day of rain. This was noted as an observation.
It was found that the number of
workers which are comprised of
Malays (Natives) at the estate only
amounted to 4 people, while at the
mill, it was only 2 people. The
majority of labour originates of the
tribes of Batak, Javanese, Minang.
They are domiciled and have ID
showing that they live in the area
around the company, which shows
that the company does hire workers from surrounding communities.
The number of people of whom
they hire from each community is
at the company’s discretion based
on need and ability of the applicant to fulfil the job requirements.
2. The number of workers
who are currently hired is
sufficient to meet the
needs of the office and
are in accordance with the
work program.
Page 52 of 66
There used to be workers employed from the nearby villages but after they made some
mistakes, the company
seemed reluctant to take on
new recruits from villages
3.
Please monitor youth issues,
especially the Sakai youth with
regards to lack of work opportunities. We feel left out by the
company.
Meranti Village and
work program.
4.
The price of FFB purchased
from outside suppliers of fruit
should be increased. The
price is always cheaper than
other mills. Please pay a
higher price than other mills,
and the queue number should
be prioritized for UNEDO
Suppliers
1. The price of FFB that we
buy is based on quality of
FFB and CPO market.
Price of FFB purchased from
suppliers who come from far
away is higher than the price
of FFB purchased by suppliers located nearby. It is expected that the price of FFB
paid to suppliers located
nearby should be the same as
those from far away.
3. Purchase of FFB from
suppliers located far away is
a business strategy to increase the capacity of the
mill.
The price of FFB increases
and decreases based on the
season and the difference in
price is quite high
5.
The company must provide a
'delivery order' which shows the
2. The queues will be maintained to be in accordance
with queue number provided
to maintain order during receipt of FFB
4. Price of FFB is not based
on the season, but considering the field conditions and
also the purchase price of
competitors.
It was found that the number of
workers which are comprised of
Malays (Natives) at the estate only
amounted to 4 people, while at the
mill, it was only 2 people. The
majority of labour originates of the
tribes of Batak, Javanese, Minang.
They are domiciled and have ID
showing that they live in the area
around the company, which shows
that the company does hire workers from surrounding communities.
they hire from each community is
at the company’s discretion based
on need and ability of the applicant to fulfil the job requirements.
The company has an FFB purchasing
procedure No. 001 / TBS-SOP / VIII /
2015 dated August 10, 2015 which
defines procedures for purchases of
FFB from external parties to ensure
that FFB purchasing activities are
conducted properly, are verifiable,
there is continuity in time and the
quality of palm fruit were purchased
and to ensure no errors or deviations
in the purchasing activities of FFB.
The SOP states the following:
FFB Purchase Price:
1. Purchase TBS should be guided
by the Cost of Purchasing (HPP)
which specifies FFB management
with regard to overall market conditions
2. If the purchase price exceeds the
HPP FFB preset by management,
then the purchase transaction is subject to approval of the Head of Commersial.
Calculation of Cost of Purchase:
1. The calculation is done every day
by the logistics section at the district
office.
2. Calculation of the HPP is guided
by FFB production, CPO/PK price,
processing costs, yield, and freight
and is calculated using computerized
forumulations.
3. The results of calculation of the
HPP on FFB prices is informed to the
Operations Department of the Office
of the region on the same day.
1. Suppliers can requested for
a recapitulation of total FFB
The decision to meet this request is
at the company’s discretion.
Page 53 of 66
total number of FFB received
from suppliers every month.
Cooperatives also no firm working agreement with the company.
6.
The road from Sei Meranti village to the company need repair.
The company installed power
pole at the side of roads from
the mill going into Sungai Meranti because the company
does not want to fell palm trees
to place the poles there, and
this leads to a very narrow path.
The roads with many potholes
within the company area should
be repaired by the company or
a request made to the local authorities to repair the roads.
which is received by the
mill and a monthly
summary will be provided
2. There are no FFB suppliers
that are under the
company’s cooperatives
1. The road going to Sei Meranti within the company’s
land has all this time been
the responsibility of the
company to improve on a
regular basis by using
heavy equipment, i.e. a
grader. The width of the
road is 7 meters.
2. Initially the plan for installation of electrical poles was
proposed by the company
to the National Electricity
Company (‘Perusahaan
Listrik Negara’/ PLN) and to
facilities the installation of
electrical poles, the company felled 196 trees.
3. The potholed roads within
the areas of the company
for the time being are under
maintenance by the company
Progress report on the plantation for each semester is sent
on an annual basis to the Office of the estate.
The company has a maintenance road program to the main
road or collection road in 2015
and supported with a budget that
contained in budget 2015. Supporting equipment includes one
grader. Records of road maintenance in 2015 include:
• Maintenance of the main road in
2015, planned throughout the
13,000 meters and the implementation until October 2015
throughout the 10,832 meters
• Maintenance of the collection
road in 2015, planned throughout the 64,163 meters and the
implementation until October
2015 throughout the 53,728 meters.
7.
Reporting to the Department of
Agriculture of Bengkalis on
plantation development every
semester is not consistently
done on time.
8.
Dust during the dry season due
to the vehicles carrying FFB are
really disturbing the villagers of
Suka Maju Village
Currently the management
implement road watering
during the dry season 2 times
(morning and afternoon).
This comment is also noted as an
observation.
9.
Good relationship with the
company all this time.
The Company will always keep
good relations with all parties
concerned
Based on field observations and interviews with community leaders,
there is indeed a good relationship
between the company and local people, and society can feel the direct
benefits of the presence of the Estate
and the Mill activities in terms of economic and social development
The company always maintain
a climate conducive to the
parties concerned, to create a
peaceful atmosphere in the
neighborhood of the company
It was confirmed during this audit that
there were no major issues found between the company and its stakeholders, including local community
members.
The company is transparent in
all fields and has been working
to enhance cooperation with all
parties
10.
There has never been any report made to the police about
any kind of conflict associated
with the company, so the condition is relatively peaceful.
The most recent report of UKL-UPL
for first half of 2015 was sent to the
Environment
Agency
(BLH)
Bengkalis on 3 September 2015,
and the Agriculture Agency Bengkalis district on 3 September 2015,
BLH Riau Province on 27 August
2015. However, the comment from
the Department of Agriculture is
noted as an observation.
Tidak pernah ada laporan
kepada pihak polisi tentang apa
jenis konflik yang terkait
dengan perusahaan, jadi kondisinya agak aman.
Page 54 of 66
11.
It is hope that the company can
sponsor small and medium enterprises (SMEs) so they can
get modal for their development.
12.
Hope for improvement in terms
of the company's CSR openness and uniformity (now
somewhat chaotic) and that the
company’s representatives are
more polite, especially security.
It is expected that the company
seeks to improve CSR program,
social assistance and cooperation between the company
and communities.
13.
The company should endeavour to reduce unemployment
The company is regularly
contributing to the
communities surrounding the
company in accordance with
the results of the Social Impact
Assessment and capability of
the company
1. The company is regularly
contributing to the
environment surrounding
the company in accordance
with the results of the
Social Impact Assessment
and capacity of the
company
2. Employees of PT MSS
including security will be
reminded to be polite and
have a courteous attitude in
order to further improve in
serving stakeholders come
to PT MSS
The company already has a CSR
program which is implemented in
accordance with the results of SIA.
Contributions for the development of
SMEs is made at the discretion of the
company.
Meranti Village and
they hire is at the company’s discretion based on need and ability
of the applicant to fulfil the job requirements.
work program.
14.
The company is requested to
improve on their tranparency in
future
The company already has a
mechanism for provision of
information and
communication with relevant
parties
The company has a procedure
number PRO-BM-007 Rev 01
dated August 1st 2015 regarding
Communication,
Consultation
and
Coordination
with
stakeholder.
The procedure
describe how to respond to
communication, consultation and
coordination
initiatives
from
stakeholders. It also lists the
documents made publicly available to stakeholders.
15.
The impact of the company is
quite positive. The company
regularly makes positive contributions and provides assistance to the local people. We
are already feeling the positive
contribution of PT MSS compared to other mills in the district.
The company is regularly
contributing to the
communities surrounding the
company in accordance with
the results of the Social Impact
Assessment and capability of
the company
Contributions include assistance in education, health,
housing, water supply during
Page 55 of 66
drought period, transportation
for children to go to school, help
with worship areas, and others.
Page 56 of 66
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 assessment findings and report content.
Signed on behalf of PT TUV Rheinland Indonesia
………………………………………….
Name: Carol Ng Siew Theng
(Lead Auditor)
Date: 5 April 2016
Page 57 of 66
APPENDICES
Appendix 1: Details of Certificate
Page 58 of 66
Page 59 of 66
Appendix 2: Certification Audit Plan
Date / Time (1)
Organizational Unit and Processes
Monday, 2 November 2015
07.35-07.35
Travel from Kuala Lumpur–Medan
05.35-08.00
Travel from Jakarta-Medan
08.45-09.45
Travel from Medan Airport – Medan
Train station
Travel from Medan-Rantau Prapat
10.37-16.14
16.30-
Travel from Rantau Prapat – Estate
PT MSS at Pekanbaru
16.30Travel from Pekanbaru-Estate PT
MSS
End of 1st day audit
Tuesday, 3 November 2015
08.00 – 12.00
Public Consultation
12.00 - 13.00
13.00 – 15.00
15.00 – 17.00
Estate
15.00 – 17.00
Estate
15.00 – 17.00
Estate
15.00 – 17.00
Estate
Auditor /
Abbrev.
Carol Ng
(CN)
Suriadi Ali
(SA), Naik
Monang
(NMA)
CN, SA,
NMA
CN, SA,
NMA
CN, SA,
NMA
Dewi Akbari
(DWA)
All Auditor
Lunch Break and prayer
Opening meeting
All Auditor
• Introduction to audit team,
• Introduction to company profile
CN
Document verification:
RSPO
• Financial viability
• Compliance with legal
requirements
• Standard perational procedures of
companies and its implementation
• Improved soil fertility
• Erosion control / soil degradation
• Integrated pest management
• Land Clearing
• Continuous Improvement
• Mitigation of GHG
NMA
RSPO
• Commitment to ethical conduct
• Legal ownership documents
• Soil conservation / erosion control
• HCV
• Use of fossil fuels
• Soil survey and GIS
• Management of fragile land
RSPO
requirements
• Surface water quality monitoring
• The use of pesticides
• OSH
• Training
• AMDAL / UKL-UPL
• Waste disposal
RSPO
Interviewee
Procedure – EM/QM Element Standard Chapter
Airasia AK 396
Garuda GA 180
Railink U7
Sribilah Utama U46 Train
By Car
By Car
Stakeholders
terkait
Estate and Mill
Management
Estate Management
Estate
Management
SA
Estate
Management
DWA
Estate
Management
RSPO
Principle 2
Criterion 2.1.1
Principle 3
Criterion 3.1
Principle 4
Criterion 4.1; 4.2; 4.5
Principle 5
Criterion 5.5; 5.6
Principle 7
Criterion 7.7
Principle 8
Criterion 8.1
RSPO
Principle 1
Criterion 1.3
Principle 2
Criterion 2.1; 2.2
Principle 4
Criterion 4.3
Principle 5
Criterion 5.2; 5.4
Principle 7
Criterion 7.2; 7.3; 7.4; 7.8
Principle 8
Criterion 8.1
RSPO
Principle 2
Criterion 2.1.1
Principle 4
Criterion 4.4; 4.6; 4.7; 4.8
Principle 5
Criterion 5.1; .5.3
Principle 7
Criterion 7.1
Principle 8
Criterion 8.1
RSPO
Principle 1
Page 60 of 66
Date / Time (1)
Auditor /
Abbrev.
Interviewee
NMA
Estate Management
•
Compliance with legal
requirements
• Requests for information
• Publicly available documents
• Land conflicts
• Provision of information
• Land use
• SIA
• Social impacts management
• Workforce management
17.00
End of 2nd day audit
Wednesday, 4 November 2015
08.00 – 12.00
Field verification of:
Estate
• Estate Legality
• Boundary stones
• Water conservation
• Conservation area with high erosion potential
• HCV
• Protected area
• Continuous improvement
08.00 – 12.00
Estate
• Land clearing activities
• Nurseries
• Planted area
• Field maintenance,
• Fertilizer application
• Pest and disease control,
• Harvesting and transporting of
FFB
• Fire prevention
• GHG emissions reduction
CN
Estate Management
08.00 – 12.00
Estate
• Hazardous waste management
• OSH
• Land application
• Water conservation
• Implementation of the RKL-RPL
SA
Estate Management
08.00 – 12.00
Estate
• Estate development community
• Land disputes
• Workers welfare
• Prevention of child labour
• Labour union
• Social responsibility / CSR
• Local business development
• Complaints and feedback
• Payroll system
• The application of antidiscrimination policy
• Protection of reproductive rights
Continue document check
DWA
Estate Management
All auditors
Estate
Management
12.00-13.00
13.00-17.00
Criterion 1.1; 1.2
Principle 2
Criterion 2.1.1; 2.2.3; 2.2.4;
2.2.5; 2.2.6; 2.3
Principle 6
Criterion 6.1 s/d 6.13
Principle 7
Criterion 7.5; 7.6
Principle 8
Criterion 8.1
RSPO
Principle 1
Criterion 1.3
Principle 2
Criterion 2.1; 2.2
Principle 4
Criterion 4.3
Principle 5
Criterion 5.2; 5.4
Principle 7
Criterion 7.2; 7.3; 7.4; 7.8
Principle 8
Criterion 8.1
RSPO
Principle 2
Criterion 2.1.1
Principle 3
Criterion 3.1
Principle 4
Criterion 4.1; 4.2; 4.5
Principle 5
Criterion 5.5; 5.6
Principle 7
Criterion 7.7
Principle 8
Criterion 8.1
RSPO
Principle 2
Criterion 2.1.1
Principle 4
Criterion 4.4; 4.6; 4.7
Principle 5
Criterion 5.1; 5.3
Principle 8
Criterion 8.1
RSPO
Principle 1
Criterion 1.1; 1.2
Principle 2
Criterion 2.1.1; 2.2.3; 2.2.4;
2.2.5; 2.2.6; 2.3
Principle 6
Principle 7
Criterion 7.5; 7.6
Principle 8
Criterion 8.1
End of 3rd day audit
Page 61 of 66
Date / Time (1)
Thursday, 5 November 2015
08.00 – 12.00
Verification of documents and field
visit related to:
Mill
• Compliance with legislation
• Legality of the mill
• FFB reception
• FFB processing
• The use of fossil fuels
• Use of water
• Maintenance of machines
• Licenses of machinery
• Commitment to ethical conduct
08.00 – 12.00
visit related to:
Mill
• Mill Management
• Continuous Improvement Plans
• SOPs and implementation
• Fire prevention
• Mitigation of GHG emissions
• Supply Chain Certification System
08.00 – 12.00
PKS
08.00 – 12.00
Mill
12.00-13.00
13.00-17.00
visit related to:
• Water quality monitoring
• OSH
• Training
• Hazardous Waste Management
• Environmental management /
AMDAL / UKL-UPL / RKL-RPL
• Disposal and utilization of palm oil
mill effluent
• Wastewater treatment plant
• Land application
visit related to:
• Worker’s welfare
• Prevention of child labor
• Labour union
• Social responsibility / CSR
• Local business development
• Complaints and feedback
• Payroll system
• The application of antidiscrimination policy
• Protection of reproductive rights
Continue verification
Auditor /
Abbrev.
Interviewee
NMA
Mill Management
RSPO
Principle 1
Criterion 1.3
Principle 2
Criterion 2.1; 2.2
Principle 5
Criterion 5.2; 5.4
Principle 8
Criterion 8.1
CN
Mill Management
SA
Mill Management
RSPO
Principle 2
Criterion 2.1.1
Principle 3
Criterion 3.1
Principle 4
Criterion 4.1
Principle 5
Criterion 5.6
Principle 8
Criterion 8.1
SCCS
All criterion
RSPO
Principle 2
Criterion 2.1.1
Principle 4
Criterion 4.4; 4.7; 4.8
Principle 5
Criterion 5.1; .5.3
Principle 8
Criterion 8.1
DWA
Mill Management
RSPO
Principle 1
Criterion 1.1; 1.2
Principle 2
Criterion 2.1.1; 2.2.3; 2.2.4;
2.2.5; 2.2.6; 2.3
Principle 6
Principle 8
Criterion 8.1
Mill Management
End of 4th day audit
Friday, 6 November 2015
Page 62 of 66
08.00 – 10.00
Closing meeting
Auditor /
Abbrev.
All
Audito
rs
10.30-
Travel from Estate to Jakarta
SA, DWA
Date / Time (1)
Travel from Estate to KL
Interviewee
Mill and Estate
Management
CN
Page 63 of 66
Appendix 3: List of Abbreviations
AMDAL
BM
CPO
CSR
DPLH
EMU
EHS
EIA
ERTs
ESH
FFB
EFB
HCV
HGU
Kepmenkes
IPM
IUP
LTA
MSDS
MSS
NGO
OSH
P&C
P2K3
PermenLH
Permenakertrans
Permentan
Perpu
PKO
PLN
POME
PP
PPE
PROPER
RI
RKL
RPL
RTRWP
SCCS
SIA
SOP
UKL
UPL
UU
Analisis Dampak Lingkungan & Sosial
(Social & Environmental Impacts Assessment)
Bina Mitra (Community Development)
Crude Palm Oil
Corporate Social Responsibility
Dokumen Pengelolaan Lingkungan Hidup (Environmental Management Document)
Environmental Management Unit
Environmental, Health & Safety
Environmental Impact Assessment
Endangered, Rare & Threatened species
Environmental Safety & Health
Fresh Fruit Bunches
Empty Fruit Bunches
High Conservation Value
Hak Guna Usaha (Land Use Rights)
Keputusan Menteri Kesihatan (Ministry of Health Decision)
Integrated Pest Management
Izin Usaha PerEstatean (Estate Business Permit)
Lost Time Accident
Material Safety Data Sheets
Murini Sam Sam
Non-Government Organization
Occupational Safety & Health
Principles & Criteria
Panitia Pembina Keselamatan dan Kesehatan Kerja (Committee of Occupational
Health and Safety)
Peraturan Menteri Lingkungan Hidup (Environmental Ministry Regulation)
Peraturan Menteri Tenaga Kerja dan Transmigrasi (Regulation on Minister of
Manpower and Transmigration)
Peraturan Menteri Pertanian (Agriculture Ministry Regulation)
Peraturan Pemerintah Pengganti Undang-Undang (Government Regulation in
Lieu of Law)
Palm Kernel Oil
Perusahaan Listrik Negara (National Electricity Company)
Palm Oil Mill Effluent
Peraturan Pemerintah (Government Regulation)
Personal Protective Equipment
Program Performance Rating in Environmental Management (Program Penilaian
Peringkat Kinerja Perusahaan dalam Pengelolaan Lingkungan Hidup)
Republik Indonesia (Republic of Indonesia)
Rencana Pengelolaan Lingkungan (Environmental Management Plan)
Rencana Pemantauan Lingkungan (Environmental Monitoring Plan)
Rencana Tata Ruang Wilayah Propinsi (Provincial Spatial Plan)
Supply Chain Certification System
Social Impact Assessment
Standard Operating Procedure
Upaya Pengelolaan Lingkungan (Environmental Management Efforts)
Upaya Pemantauan Lingkungan (Environmental Monitoring Efforts)
Undang-undang (Regulation)
Page 64 of 66
Appendix 4: List of Stakeholders Interviewed and Contacted
Name of
Institution / Position
Stakeholder
Stakeholders Interviewed during Public Consultation Meeting
1.
Siamet Rahayu
PLH Village Secretary
2.
Dahari Prayitno
PLH Village Secretary
3.
Ismet B.
Peace and Order Section (Kasi Trantib)
4.
Hanafi
District Secretary
5.
Indonesian Transport Workers' Union (SPTI)
Hotman Gultom
and the All Indonesian Workers Union (SPSI)
Indonesian Transport Workers' Union (SPTI)
6.
Dian Suwindy
and the All Indonesian Workers Union (SPSI)
7.
Public Order and Safety Officer
S. Manik
(Bhabinkamtibmas)
8.
M. Tamin A.
Pangkalan Libut Village Head
9.
Etnis Siran
Head of Pancasila Youth
10. Zulfan
FKPM Head of Balai Pungut Village
11. Wahidin
Balai Pungut Village representative
12. Arif
FKPM
13. Jalaluddin
Supplier
14. Marjuki
Pangkalan Libut Village representative
15. Bikrama Adam
Supplier
16. Dedek
Reformation
17.
Lintung P.
No.
Remarks
Name of organization
unclear
18. Aman Mandung
Tenggarau Village representative
19. P. Hutabarat
Supplier (UNEDO)
20. Burhan Sihotang
Suka Maju Village representative
21. Dodo
22. Zipro Situmtang
23. Mustar J. Ambarita
Tenggarau Village representative
Stakeholders Interviewed On-Site
24. Srimaryani
Fertilizer Worker
25. Bertiana Siahaan
Sprayer
26. R Sugeng
Harvester
27. Jurianto
Warehouse Foremen
28. Mujimin
Harvester
29. Tri Nurhandayani
Paramedic
30. Efrata F Ginting
SHE Officer
31. Salmiah
IPM Census Officer
32. Ahmad Sanjai
Assistant General Affair
Munthe
33. Ardianto Supriman
Tractor Operator
H
34. Novri Zein
EHS Officer
Page 65 of 66
Appendix 5: Observations and Opportunities for Improvement
No.
Observations / Opportunities for Improvement
Geographical location stated in some documents, i.e. the company’s HCV report
and report on implementation of UPL/UKL for Semester 1 of year 2015 stated the
estate latitude as 1°20'20" - 1°50'25" N, however this was found to inconsistent with
actual GPS reading taken from the estate office, which was 1°3' 33". The company
should conduct recheck of the actual latitude of the estate location and ensure all
documents reflect the actual GPS location.
Criteria
-
Reporting to the Department of Agriculture of Bengkalis on plantation development every semester is not consistently done on time, as informed by a representative of the department during the stakeholder consultation meeting
2.1.1
2.
The company has not developed a mechanism for separation of HGU area and nonHGU area located within the same block to be implemented until all FFB produced
from the non-HGU area can be included in the certification scope.
2.2.2
3.
4.
The company should prepare an information board describing the company’s procedure for resolution of land conflicts and place it in front of the office.
2.2.6
4.1
5.
The format of the non-conformity findings table provided in internal audit findings
report done by 2 internal auditors was dated 24-25 March 2015 was not the same
format as required in the company’s procedure PRO-GEN-003 for internal audits.
The format also did not list any root cause, correction or corrective action as per the
SOP nonconformance form, but only stated the date of closure. As explained by the
company’s internal audit department, the forms as per the SOP will be applied for
internal audits once the company has been certified, as the current format used was
primarily to assist the company to prepare for the upcoming certification audit. Implementation of the SOP will be verified further during the next surveillance audit.
6.
Road maintenance during dry season may require additional watering to reduce dust asit
was informed during the stakeholder consultation meeting that the dust is causing disturbance to the villagers of Suka Maju Village
4.3.3
1) For water samples of Mandau River dated 9 April 2015, the BOD and COD of the
upstream sample was 17.81 ppm and 59.36ppm respectively while for downstream
sample was 21.12 ppm and 70.40ppm respectively. As the BOD and COD results
showed a decrease in water quality in the downstream samples compared to upstream, the company should make additional efforts to prevent further reduction in
the water quality of the polluted river.
It is not that since the upstream sample water quality exceeded the standard of 6
ppm for BOD and 50ppm for COD for Class III water sources as per the local regulation PP 82 year 2001, the sources of pollution most likely came from outside the
estate
2) The company has not designated fixed water sampling points for Sg. Meranti
River and Mandau River on-site and on a map
Follow-up medical consultations or awareness programs on PPE usage after audiometric results for 22 workers showed that they were found to have mild restricted
hearing has not been done
4.4
1.
7.
8.
4.7.2
The company’s Environmental Management Document (Dokumen Pengelolaan
Lingkungan Hidup - DPLH) has not yet been updated in accordance with change in
operations since the mill’s production capacity has increased from 45 tonnes per
hour to 90 tonnes per hour since year 2005.
5.1.2
9.
The company is currently lacking posters and information boards to inform regarding
the types of protected species in the area, especially in areas identified as HCV
areas. (e.g. at the thicket swamp of Mandau River)
5.2.1
10.
11.
Demarcation of land application blocks has not been done in accordance with the
land application permit of the company.
5.3.3
12.
• The company’s SIA report does not include an analysis of when the estate management plans to conduct replanting activities.
6.1.1
Page 66 of 66
13.
14.
15.
16.
• The company has not implemented a CSR program based on the result of social
impacts which have been determined
It was found that workers interviewed accept that there is no worker’s union and
there are no issues with the workers. However, the company should discuss the
possible formation of a worker’s union with all workers as there may be those who
may request for it.
• The company has a register of names of breastfeeding female but the form does
not state a number, date of publication, date of revision in order to establish it as
a formal document of the company.
• The current Gender Committee structure currently does not adequately include
representation from all work levels, and there is no counseling service for those
experiencing gender related issues
• The company has yet to carry out training on the reproductive rights of women
The palm oil mill has yet to reconsider whether manpower planning is sufficient for
the engine room, as currently there are only just enough personnel to cover all
shifts but lack of manpower if one operator is on holiday or absent.
The stamps to be used by the estate for indicating sustainable crop and for the
mill to indicate mass balance status of certified CPO and PK is still not available
and only will be prepared after the company has received their RSPO certificate
so that the certificate number is indicated on the stamps. This will be verified during the next surveillance audit.
6.6.1
6.9.4
4.7
SCCS
E.3

PT Murini Sam-Sam

Transcription

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