Roundtable on Sustainable Palm Oil Annual Surveillance Audit Report Report no. : ASA1_14025 Surveillance assessment against the RSPO Principles & Criteria Indonesia year 2013 (Generic) and RSPO SCCS year 2014 Name of client PT Rimba Mujur Mahkota Sikarakara Palm Oil Mill Head Office : Jl. Timor No. 139, Gang Buntu Village, Medan Timur Sub District, Medan District, North Sumatera Province, Indonesia Estate & Mill : Sikarakara Village, Natal Sub District, Mandailing Natal District, North Sumatera Province, Indonesia Date of assessment: August 24 to 28, 2015 Report prepared by: Wahyu Wigati Wijayanti (RSPO Lead Auditor) Certification decision by: Abdul Qohar (Director of PT TUV Rheinland Indonesia) Certification Body: PT TUV Rheinland Indonesia Menara Karya Lantai 10, Jl. H.R. Rasuna Said Block X-5 Kav.1-2 Setiabudi, Jakarta, Indonesia 12950 Tel: +62 21 579 44 579 Fax: +62 21 579 44 575 www.tuv.com
Transcript
Roundtable on Sustainable Palm Oil Annual Surveillance Audit Report
Report no. : ASA1_14025
Surveillance assessment against
the RSPO Principles & Criteria Indonesia year 2013 (Generic) and RSPO SCCS year 2014
Name of client
PT Rimba Mujur Mahkota Sikarakara Palm Oil Mill
Head Office : Jl. Timor No. 139, Gang Buntu Village, Medan Timur Sub District, Medan District, North Sumatera Province,
Indonesia
Estate & Mill : Sikarakara Village, Natal Sub District, Mandailing Natal District, North Sumatera Province, Indonesia
Date of assessment: August 24 to 28, 2015
Report prepared by:
Wahyu Wigati Wijayanti (RSPO Lead Auditor)
Certification decision by: Abdul Qohar
(Director of PT TUV Rheinland Indonesia)
Certification Body: PT TUV Rheinland Indonesia
Menara Karya Lantai 10, Jl. H.R. Rasuna Said Block X-5 Kav.1-2
Setiabudi, Jakarta, Indonesia 12950 Tel: +62 21 579 44 579 Fax: +62 21 579 44 575
www.tuv.com
TABLE OF CONTENTS
1.0 SCOPE OF ANNUAL SURVEILLANCE AUDIT ............ ............................................. 3
1.1 National Interpretation Used ..............................................................................................................3 1.2 Type of Assessment ...........................................................................................................................3 1.3 Certification Details ............................................................................................................................3 1.4 Location and Maps .............................................................................................................................4 1.5 Organisational Information / Contact Person .....................................................................................6 1.6 Description of Supply Base ................................................................................................................6 1.7 Actual production volumes, tonnages and projected outputs. ...........................................................7 1.8 Dates of Plantings and Replanting Cycles .........................................................................................7 1.9 Area of Plantation (Total, Planted and Mature) .................................................................................7 1.10 Progress Against Time Bound Plan .................................................................................................8 1.11 Compliance to Rules for Partial Certification ...................................................................................8 1.12 Progress of associated smallholders or outgrowers towards RSPO compliance ...........................8 1.13 Approximate Tonnages Certified .....................................................................................................8
2.0 ASSESSMENT PROCESS ......................................................................................... 9
2.1 Certification Body ...............................................................................................................................9 2.2 Qualifications of Lead Assessor and Assessment Team ..................................................................9 2.3 Assessment Methodology & Agenda .............................................................................................. 10
3.1 Summary of Findings ...................................................................................................................... 12 3.2 Status of Previously Identified Non-conformities ............................................................................ 47 3.3 Identified Non-conformances, Corrective Actions Taken and Auditors Conclusions..................... 47 3.4 Description of Supply Chain Management System ........................................................................ 51 3.5 Status of Previously Identified Non-conformities ........................................................................... 51 3.6 Identified Non-conformances against RSPO SCCS Requirements, Corrective Actions Taken and
Auditors Conclusions ..................................................................................................................... 57 3.7 Noteworthy Positive Component .................................................................................................... 57 3.8 Conclusion and Recommendation for RSPO P & C and Supply Chain Certification ................... 57 3.9 Issues Raised by Stakeholders and Findings Pertaining to Issues .............................................. 57
4.0 CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF INT ERNAL
4.1 Date of Next Surveillance Visit ........................................................................................................ 59 4.2 Acknowledgements of Internal Responsibility and Formal Sign-Off by Client ............................... 59
Appendix 1: List of Abbreviations .......................................................................................................... 60 Appendix 2 : List of Stakeholders Interviewed and Contacted ............................................................. 65 Appendix 3: Observations and Opportunities for Improvement ............................................................ 65
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1.0 SCOPE OF CERTIFICATION ASSESSMENT
1.1 Principles & Criteria Used
The operations of the palm oil mill(s) and its supply base of FFB were assessed against the RSPO Principles & Criteria (generic) year 2013 and RSPO SCCS November 2014. Since the management of smallholder scheme is under PT Rimba Mujur Mahkota directly, the requirement for the smallholder (KUD Sumber Usaha) certifica-tion audit is also against the RSPO Principles & Criteria (generic) year 2013.
1.2 Type of Assessment
The annual surveillance assessment was carried out on 1 mill and 1 estate under PT Rimba Mujur Mahkota and 1 smallholder estate under Village Cooperatives (Koperasi Unit Desa) of Sumber Usaha.
1.3 Certification Details
The details of RSPO certification of PT Rimba Mujur Mahkota as per the table below.
Total 222,596.50 100.00 144,893.85 100.00 256,494.30 100.00
Note :
*). Total FFB received from January to December 2014 (certified and non certified FFB), whereas certified FFB is calculated from the date of 7 November 2014 after RMM got RSPO certificate = 15,505.99 ton
**). January to July 2015 ***) Budget January to December 2015
Name of mill / es-tate
Location GPS locations
Latitude Longitude Sikarakara POM Sikarakara village, Natal Sub District, Mandailing
Natal District, North Sumatera Province 000 40’ 19.4” N 990 05’ 31.2” E
Sikarakara Es-tate
Sikarakara village, Natal Sub District, Mandailing Natal District, North Sumatera Province
000 39’ 30.8” N 990 05’ 42,6” E
Smallholder Es-tate (KUD Sum-ber Usaha)
Sikarakara village, Natal Sub District, Mandailing Natal District, North Sumatera Province 000 43’ 36,2” N 990 06’ 24,3” E
Company Name : PT Rimba Mujur Mahkota
Address : Jl. Timor No.39, Gang Buntu Village, Medan Timur Sub District, Medan Dis-trict, North Sumatera Province
1.7 Actual production volumes, tonnages and project ed outputs.
Table 4 : Certified tonnages claimed, certified ton nages purchased or sold, total and projected CPO and PK production from PT Rimba Mujur Mahkota
*) data consist of from material certified and material non-certified.
**) data realization production for 2014 from own estate and smallholder scheme (November to December 2014)
1.8 Dates of Plantings and Replanting Cycles The company follows a replanting cycle of 25 years. Information on the year of plantings is as per the table be-low.
Table 5 : Age and year of plantings of company esta te supplying to PT Rimba Mujur Mahkota (RMM)
Age & Year of Plantings Oil palm planted area at each estate (ha)
Total Sikarakara Estate Smallholder estate
0 – 5 (2010 – 2014) 0.00 0.00 0.0
6 – 10 (2005 – 2009) 679.00 0.00 679.00
11 – 15 (2000 – 2004) 1,681.00 586 2,267
16 – 20 ( 1995 - 1999) 2,254.00 0.00 2,254.00
TOTAL 4,614.00 600.00 5,200.00
1.9 Area of Plantation (Total, Planted and Mature)
Table 6 : Oil Palm Planted Area Summary, FFB Product ion and Average yield/ha for PT RImba Mujur Mahkota
TOTAL 5,556.00 5,200.00 5,200.00 0.00 118,947.50 22.87
Amount (MT) Year 2014 Amount (MT)
Until July 2015 CPO PK CPO PK
Certified tonnages claimed
24,088.68 5,391.28 24,088.68 5,391.28
Certified tonnages sold*
Certified tonnages purchased*
- - - -
Actual Production* 46,933.28 10,239.44 31,601.35 6,853.48 Actual certified pro-duction**
3,268.66 717.93 17,263.74 3,744.04
Extraction rate for certified product 21.08 4.63 21.81
4.73
Projected output for year 2015
- - 56,095.30 12,132.18
Projected certified product for year 2015 (at OER 21.81% and KER 4.73%)
30,592.73 6,634.74
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Note : * Period of January to December 2014. Whereas FFB production in January to July 2015 for Sikarakara estate amount of 70,013.37 ton ) and smallholder estate (KUD Sumber Usaha) amount of 9,142 ton
PT Rimba Mujur Mahkota is single entity RSPO membership. No timebound plan requirement for single entity membership.
1.11 Compliance to Rules for Partial Certification
The rules of partial requirement is no addressed for RSPO single entity membership.
1.12 Progress of associated smallholders or outgrow ers towards RSPO compliance
The scope of this certification audit include FFB from smallholder scheme area under PT RMM management, i.e. KUD Sumber Usaha.
1.13 Approximate Tonnages Certified
The approximate tonnages certified, based on average projection of FFB production period year 2015 for com-pany owned estate and smallholder scheme only are as follows:
2.1 Certification Body PT TUV Rheinland Indonesia is member of Group TÜV Rheinland Group, a global leader in independent test-ing and assessment services. The TÜV Rheinland Group was established in 1872 with offices located in over 490 locations in 62 countries on all five continents. PT TUV Rheinland Indonesia offers certification for a wide range of management systems according to established international standards including ISO 9001, ISO 14001, OHSAS 18001, SA 8000, as well as CDM Validations and Verifications. PT TUV Rheinland Indonesia’s office is located in Jakarta, Indonesia.
2.2 Qualifications of Lead Assessor and Assessment Team
Name Position Qualifications / Experience
Wahyu Wigati W Lead Audi-tor
Education : Magister of Management Agribusiness – Bogor Agricul-ture Institute (1993) and Bachelors Degree in Forestry – Gajah Mada University (2000). Trainings attended : ISO 9001 : 2008 lead auditor course, ISO 14001 : 2004 lead auditor course, Timber Legality of Verification - Forestry Education and Training Centre, OHS-MS (SMK3), RSPO Lead Auditor course, ISPO Auditor course, CoC auditor training – LEI, Forest Certification (Sweden, 1997). Working experience: Experienced as technical staff in Association of Indonesian Forest Concessionaires (1993-2004), manager of communication in Borneo Orangutan Survival Foundation (2005-2007), profesional of consultant in forestry sector (2007-2010), Audi-tor in PT Mutu Hijau Indonesia (2010-2013), profesional of auditor for QMS, EMS, SVLK, RSPO and ISPO (2010-now).
Riswan Zain Auditor
Educational: Bachelor of Forestry Faculty of Forestry, Bogor Agricul-tural University and a Masters in Management of Natural Resources and Environment, Graduate School of the University of North Suma-tra. Training attended: Authors Course EIA, GIS training and advanced levels analyst, Internal Auditor Training Integration System: Quality Management System ISO 9001: 2008, EMS ISO 14001: 2004 and OHSAS 18001: 2007, the RSPO GHG Calculation Training (PalmGHG). Technical Training Training Course of High Conserva-tion Value (HCV), ISPO Auditor Training Batch VI. Working Experience: Team Leader Identification of Protected Areas and Biodiversity in several oil palm plantations (Anglo Eastern Plan-tation and Delima Makmur), Chairman of the mapping team detail units plantation PT PTPN III, Team Coordinator Acceleration RTRWP North Sumatra areas of GIS, Team Expert / Assessor HCV assessment in some plantation PTPN IV; PT SKM, PT.BTS (Sinar Mas), Bukit Maradja Est, Parlabian est, PT UMW and PT TUM (SIPEF Group), PT SIS and SMA (Asiatic Group), Expert in Project Integrating sectoral Programme in the district. Nias, Tim EIA prepara-tion Electrical Transmission and Power Plant of PLN Peusangan Aceh and UKL-UPL Development Sei Ular irrigation dikes. PTPN III compensation consultant for HCV. Landscape and BMP IFACS pro-ject specialist at USAID, and the Auditor ISPO and RSPO external auditor PT TUV Rheinland Indonesia on several oil palm plantation companies.
Wahyu Auditor Education :
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Name Position Qualifications / Experience
Magister Manajemen Teknologi Manufacture Engineering, Pancasila Univesity and Bachelor of Machinery Technique, Indonesia University. Training attended: ISPO Refreshment I Auditor ISPO TUV Rheinland Indonesia, 2014; Refreshment II Auditor RSPO, AEE TUV Rheinland Indonesia, 2015; IRCA-QMS 9001:2008 lead Auditor Training; IRCA-EMS ISO 14001 Lead Auditor Training;Chain of Custody LEI Lead Auditor Training: Timber Legality Verification Lead Auditor Training; Security Supply Chain Management ISO 28000 Lead Auditor Training; Maritim Security Training, OHSAS 18001 Lead Auditor Training; Inspector Training Pressure Safety Valve; Food Safety ISO 22000 Lead Auditor Training; Pelatihan ISO 17021, ISO 17020 and RSPO P & C Awareness training. Working Experience:
Auditor for TUV Rheinland Indonesia; Auditor and Technical Manager for PT Mutu Hijau Indonesia for ISPO , ISO 9001, ISO 14001, and Timber legality verification; Freelance consultant (ISO 9000, ISO 14000, OHSAS 18001, CSMS & Improvement); Head of QHSE on PT Carsurin, Manager Marketing di PT Internex Indonesia (PCB Design); Head of R&D di PT Dawee Electronic Indonesia; Production Engineer in PT Video Display Glass Indonesia; Production Engineer in PT Sumiko LeadFrame Bintan; and Teknisi in PT Siemens Components
2.3 Assessment Methodology & Agenda
The 1st surveillance assessment was conducted between August 24 to 28, 2015 as per the assessment pro-gram below. The assessment was carried out in accordance with PT TUV Rheinland Indonesia’s RSPO audit procedure as well as the RSPO Certification Systems document. During the 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.
All 2 estates and 1 mill were visited and the assessment team carried out field and document assessments of compliance to all the RSPO principles and criteria and RSPO SCCS year 2014. Common systems were identi-fied and specific evidence was recorded for individual estates. Interviews were conducted at all estates and the mill.
The company proposed the correction and corrective action for all identified non conformities raised to the cer-tification body 30 days after the closing meeting. Verification of closure of major non-conformances was con-ducted 2 months after the closing meeting of the main assessment and implementation of corrective actions for minor non-conformities will be verified during the next surveillance audit. The certification assessment agenda is as explained below.
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Surveillance Audit Agenda.
Date Location/ Main sites
Main activities
August 24, 2015 -
August 25, 2015 Mill office
Opening meeting Introduction and profile of PT Rimba Mujur Mahkota (PT RMM) Introduction of Audit Team and a Verification documents / document review Verification to field : ~ HCV areas (S.Kunkun, S.Bintuas, Cemetary, Tengkorak hill, secondary
forest hill), ~ slope areas ~ Smallholder areas ~ Visit to villages such as Sikarakara III village, Taluk village, Sikarakara IV
village, Simpang Bambu sub village, emplasment in afd IV, emplasment in afd VII
~ Warehouse of hazardous and toxic waste, warehouse of fertilizer, ware-house of chemicals
~ Afdeling office, land application areas, subsidence pillars in peat areas,
August 26, 2015 Mill office
Verification documents or document review and verification to field : ~ Mill compound ~ Loading ramp ~ Processing (strelizer to dispatch) ~ Workshop ~ Warehouse/store ~ Effluent treatment ponds ~ Housing or emplasment’s mill ~ Security ~ SCCS ~ Interview with mill workers in weighbridge, laboratorium, boiler station,
clarification station, press station, dispatch, security. ~ Emplasment in mill ~ Monitoring of water table in peat soil
August 27, 2015 Estate of-fice
Verification documents or document review and verification to field : ~ Smallholder areas ~ Visit to villages such as Buburan village, Sikarakara village, Bronjong sub
village, emplasment in afd VII. ~ Field visit ~ Manuring activities, EFB application, land application & IPM Closing meeting
August 28, 2015 Travelling from site to Padang
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3.0 ASSESSMENT FINDINGS
3.1. Summary of Findings for RSPO P&C and Supply Chain
During the 1st surveillance assessment 9 nonconformities were assigned against RSPO P & C year 2013 (generic) consist of 6 major findings and 3 minor findings, and 3 major nonconformities against RSPO SCCS year 2014. 9 observations or opportunities for improvement were identified. Futher explaination of the non-conformities raised and corrective actions taken by the company are provided in Section 3.2. The observa-tions and opportunities for improvement are listed in Appendix 4.
The following is a summary of findings made for the criteria listed in the RSPO Principles & Criteria year 2013 (generic) and RSPO SCCS, 2014.
3.1.1. RSPO P&C
Principle 1: Commitment to transparency
Criteria assessed: CR1.1, CR1.2, CR1.3
Criteria not assessed: -
CR 1.1: The organization has stake-holder list with information on type of stake-holder, name of contact and address that was made on May 2014, but there is no update has been made until now. The organization has policy about kind of information that can be provided to public. Type of information that can be accessed by pub-lic are :
• Environmental aspect: EIA and HCV document
• OHS aspect : Report of OHS activities
• Social aspect : CSR activities
• Legal aspect: right use licence, Environmental license, Plantation Licence , and other operation per-mits
Human resource section responsible for providing information and recording the information request from stakeholder. Mechanism for information and communication both in external or internal regulated in standard procedure No. SOP Dir.MR-06. There was no information request except donation request especially for in-frastructure development supporting from stakeholder. For examples are :
1. Request letter for infrastructure providing for mosque of Pasar III Natal village. There was evidence of company’s response as official acceptance letter from village Head on 15 January 2014.
2. Request letter for company’s heavy equipment for road repairing at Sikarakakara III village. There was evidence of company’s response as official report of implementation on 22 February 2014.
3. Donation proposal from Kunkun village on 16 May 2012. There was response evidence as official acceptance letter for donation as Rp. 2,500,000 on 28 June 2012 from village Head.
4. Donation proposal from Salebaru village for bridge construction. There was official acceptance letter from the village Head for company’s donation as Rp. 35,000,000 for this puprose.
5. Donation proposal from Rukun Jaya village on 1 April 2012 for 2,000 M village road repairing. There was company’s response evidence as accpetance letter from village head on 9 April 2012.
The organization delivered information regularly to government agencies such as :
• Environment Management and Monitoring Semester I 2015 to the Environmental Agency and Environ-mental Ministry.
• Semester Report on Air pollution and emission, sound level, and vibration to the Environmental Agency
• Report on plantation activity progress Semester I 2005 to the Plantation Agency
• Quarterly Report on liquid waste monitoring period April – June 2015 to the Environmental Agency
• Semester I 2015 Report on applied liquid waste to the land delivered to the Environmental Agency
• Semester Report on hazardous chemist material used by company during January to June 2015 to the
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Environmental Agency and Manpower and Transmigration Agency
• Report on land fire monitoring during Semester I 2015 to the Regent of Mandailing Natal District
• Report on manpower performance to the Manpower and Transmigration Agency
As an observation to improve the provision of information the company should make socialization to the stake-holder on kind of information that can be assessed by public .
Although most of the external request only focused on fund aid, but the organization should record all re-quest from the stake-holder. There is no evidence that the organization recorded the request and response has been made, as well as log book for recording purposing is not available. Absence of information request from the stake-holder causing lack of information on response that has been made. This is raised as non-conformity, (NCR 2015-01 of 09)
CR 1.2 There is a list of publicly available documents according to RSPO P&C, signed on 18 June 2014 by Management Representative, Commerce Director and President Director. The publicly documents available are as follow :
• Legal : Land titles/user rights Plantation Operation Permit (Izin Usaha Perkebunan), Land Use Title (Hak Guna Usaha) or other documentation relating to application for Land Use Title in accordance with relevant procedures)
• Environmental : Environmental and Social Impact Assessment (AMDAL /UKL-UPL) and environmental management and monitoring reports (Laporan RKL-RPL)
• Social : Documentation of social activities and community programs.
• Health and Safety Plan
• Continuous improvement plan
During Semester I 2015, the organization has submitted information to the government agencies covering :
• Environment Management and Monitoring Semester I 2015 to the Environmental Agency and Envi-ronmental Minister.
• Semester Report on Air pollution and emission, sound level, and vibration to the Environmental Agency
• Report on plantation activity progress Semester I 2005 to the Plantation Agency
• Quarterly Report on liquid waste monitoring period April – June 2015 to the Environmental Agency
• Semester I 2015 Report on applied liquid waste to the land delivered to the Environmental Agency
• Smester Report on hazardous chemist material used by company during semester I 2015 to the En-vironmental Agency and Manpower and Transmigration Agency
• Report on land fire monitoring during Semester I 2015 to the Regent of Mandailing Natal District
Report on manpower performance to the Manpower and Transmigration Agency.
CR 1.3 There is a written policy committing to a code of ethical conduct and integrity in all operations and transac-tions. The Director of PT RMM issued a letter No. 01 /SE/DIR-RMM/V/2014 dated on May 7th, 2014 concern-ing to prohibition of corruption, bribery, fraud, assets abuse in all operational finance and activity. In previ-ous, the Director of PT RMM also has issued a decree letter No. 01/SK/Dirut-RMM/I/2011 dated on Janu-ary3rd, 2011 regarding on ethical business. This letter mentioned: Company, the directors, management and all employees emphasize avoid conflicts of interest either directly or indirectly. Not allowed to conduct insid-er trading / transaction, does not have a personal or family land, and choose a supplier who has a family re-lationship with decision makers, select of customers for commodity traded companies that have the family connections with decision makers. The policy above has socialized to workers by morning meeting, it was distributed in all emplacement and tag on wall in mill and estate office. As an observation, this policy should be also socialized to FFB supplier and other contractors.
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Compliance status : non compliance
NCR 2015-01 of 09 (Major Non-Conformity)
No evidence that organization recorded information request from the stakeholder as well as its response.
Principle 2: Compliance with applicable laws and regulations
Criteria assessed: CR2.1, CR2.2, CR2.3
Criteria not assessed: -
CR 2.1
The company has SOP.Dir-LEG-02 rev.00 dated on July 11, 2011 regarding identification and evaluation of legal compliance and other requirements including the mechanism to updating and identify legal require-ments. Identification and updating of legal requirements is conducted by the legal and liaison department, the result of identification and update was distributed to estate and mill. The company has listed all applica-ble legal requirements in a list of indication, evaluation of compliance regulation and requirement year 2014 and 2015. List of regulation has covered national and international level with legal aspect, environmental, social, worker, plantation operational, forestry and conservation. But some important regulation/law are not included or updated on the list such as regulation on hazardous and toxic waste management, environmen-tal license, rivers management etc. The company should improve and update the legal regulation list, and this is an observation.
Internal audit conducted two times a year as regulated in SOP Dir.MR-04, and the audit result has been documented well as showed on internal audit report during semester I 2015 No 001/QEMS/IA/I/2014 con-ducted on 3 - 8 June 2015.
There are evidence that the company comply with applicable regulations and has effort to comply with change in the regulations for example :
- Environmental license No 660.2/007/BPDL-MN/2007 dated on November 16th, 2007 issued by Environ-mental Agency of Mandailing Natal District
- The extension of surface water utilization permit issued by Head of Integrated Licensing Service Agency with letter No. 610/105/BPPTSU/2/12.1/X/2014 dated on October, 2nd 2014 valid for 3 years until Sep-tember 23rd, 2017.
- Permit of liquid waste application to the crops land No. 658.31/285/K/2014 dated on April 7th, 2014. This permit has expired and the organisation has sent a request letter for new permit to the Regent of Mandailing Natal District on March 25th, 2015. An evidence showed that the request still in process by a letter from Environmental Agency No.660/682/BLHKP-MN/2015 dated on Augusts 19th, 2015
- Permit of hazardous and toxic waste storage and collecting No. 658.31/330/K/2012 dated on April 12nd, 2014. This permit has expired and the organisation has sent a request letter No. 01/dir-RMM/III/2015 on March 25th, 2015 for new permit to the Regent of Mandailing Natal District on March 25th, 2015. An evi-dence showed that the request still in process by a letter from Environmental Agency No.660/685/BLHKP-MN/2015 dated on Augusts 20th, 2015
- The salary payment to the worker has been fulfill minimum wages regulation for year 2015 issued by North Sumatra Government No. No 188.44/46/Kpts/2015 dated on January 21st, 2015 , as seen on the payment slip for the staff on March 2015 i.e. Rp. 2,399,947 and salary payment evidence for harvester on April 2015 as Rp. 2,889,040. There is also a decree letter from the director of PT RMM that stated wage for permanent worker as Rp.62.200/man-day and for non-permanent worker as Rp.74.600/man-day
- The company complies with decree letter from Ministry of Agriculture No. 367/Kpts/HK.350/2002 article 4 jo Ministry of Agriculture No.26/Permentan/OT.140/2/2007 article 9 jo Ministry of Agriculture No. 98/Permentan/OT.140/9/2013 article 10 is that the organization has their Plantation Business Permit (Izin Usaha Perkebunan (IUP)).
- The company complies with decree letter from head of investment coordinating board No. 57/SK/2004 jo
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70/SK/2004 jo 1/P/2008 is that the organization has their Business Permit (Izin Usaha).
- The company complies with decree letter from Ministry of Environmental No. 17 year 2001 is that the or-ganization has environmental impact analysis document.
During audit, there is found that the organisation still does not comply with some regulation including:
- Requirement of environmental permit (Surat Kesanggupan Pengelolaan dan Pemantauan Lingkungan Hidup) for plasma farmers that managed area of 600 ha. This requirement is mandatory as regulated on Environmental Ministry Decree No. 13 Year 2010 for activities with business scale under 3000 ha and operated individually (non-corporation category).
- Chemical material that used in field operational is still not registered and recommended by the local manpower agency as regulated on Minister of Manpower and Transmigration Decree No. 187 year 1999.
- Some of boiler and sterilizer operators have no SIO license as required on Minister of Manpower Regu-lation No. 01 Year 1988 regarding to Qualification and Requirements for steam engines operator.
This condition raised as non-conformity ( NCR 2015-02 of 09)
CR 2.2 The organization has document showing ownership or lease of the land in accordance with relevant laws, that is land use right (Hak Guna Usaha /HGU) for PT Rimba Mujur Mahkota (PT RMM) and freehold title (Sertifikat Hak Milik) for village cooperative (KUD) of Sumber Usaha. PT RMM plantation has land use right (HGU (Hak Guna Usaha)) No. 25/HGU/BPN/2002 dated on June 14, 2002 from National Land Agency for total area of 4,956 ha (appropriate with map No. 04/10/2000 dated on April 27, 2000) at Sikarakara Village, Natal Sub District, Mandailing Natal District, North Sumatera Province valid for 35 years which consists of 1 (one) certificate land use right (HGU) i.e No. 1 (register number (NIB) : 02.10.01.21.00001) at Sikarakara Village, Natal Sub District, Mandailing Natal District, North Sumatera Province on behalf PT Rimba Mujur Mahkota for total area of 4,956 ha (appropriate with measurement letter No. 2291/2002 scale 1:80,000 and map No. 04/10/2000) valid for 35 years (until September 12, 2037). The company has received the decree letter from Ministry of Forestry no. 180/Kpts-II/1998 dated on February 27, 1998 about release of the part of forest areas from Sikarakara forest group amount of 3,921.70 ha. The results of cadastral measurement without changing the boundaries of the forest areas which has been released. Whereas, smallholder areas (KUD Sumber Usaha) has freehold tittle amount of 300 units where based on list of smallholder member that first (no.1) is for the ownership of certificate number 990 and last (no.300) for the ownership of certifi-cate number 944.
The company has list of all boundary stones/pillars completed with list of pillars and coordinate, and map of stones/pillars distribution in RMM areas. It was appropriate with map no. 04/10/2000. Some legal bounda-ries are clearly demarcated and visibly maintained on the ground as seen on the field for boundary stones in block B21 (boundary with community land) with coordinates 000 40’ 14.7” N ; 990 05’ 08.0” E, in block G17 (boundary with other company) with coordinates 000 45’ 18.3” N ; 990 06’ 29.8” E and in block E01 (boundary with S.Kunkun and community land) with coordinates 000 43’ 40.5” N ; 990 08’ 50.1” E,
PT RMM took over the plantation company since 2010. There is no information from the previous owner regarding to conflicts with the surround community
Pillars monitoring conducted sporadic and not programmed which caused by the absent of procedure to regulate that activity. This is categorised as minor non- conformity (NCR 2015-03 of 09) There are not any land dispute based on a letter from the village chief who claimed that the land concession No. 1/2002 covering an area of 4,956 ha located in the village Sikara-kara, sub district Natal, District Man-dailing Natal there was never any conflicts or overlapping ownership.
The Company has SOP.Dir.LEG-03 rev. 00 dated 01-04-2014 about Settlement Land disputes Compensa-tion Land and Plant Growing. Land to be freed and compensated is an area to be used as a plantation or for the other benefit of the company. The Settlement team of conflicts compensation consist of public relations, assistant topography measurement, estate manager, general manager, plant manager, manager of legal and licensing.
The Company has a policy of Protection of Human Rights and Prohibition were distributed through the circular letter number 01 / SE / DIR-RMM / V / 2014 dated May 7, 2014, in point 6 which states that: Prohib-ited / unjustified use of mercenaries / paramilitary operations of the company and intimidation of employees and the community.
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CR 2.3 Based on field observation and interview to the surround community, there were no customary right inside of the plantation. Even when the plantation area was occupied by previous company for other purpose. SIA report did not indicated there were customary right inside PT RMM plantation area
Compliance status : non compliance
NCR 2015-02 of 09 (Major Non-Conformity) :
- Requirement of environmental permit (Surat Kesanggupan Pengelolaan dan Pemantauan Lingkungan Hidup) for plasma farmers that managed area of 600 ha. This requirement is mandatory as regulated on Environmental Ministry Decree No. 13 Year 2010 for activities with business scale under 3000 ha and operated individually (non-corporation category)
- Chemical material that used in field operational is still not registered and recommended by the local manpower agency as regulated on Minister of Manpower and Transmigration Decree No. 187 year 1999
- Some of boiler and sterilizer operators has no SIO license as required on Minister of Manpower Regula-tion No. 01 Year 1988 regarding to Qualification and Requirements for steam engines operator.
NCR 2015-03 of 09 (Minor Non-Conformity) SOP for demarcation monitoring is not available
Principle 3: Commitment to long-term economic and financial viability
Criteria assessed: CR3.1
Criteria not assessed: -
Findings: In previous main audit The company (PT RMM) showed a long term business plan period of year 2015 to 2024 with information on this document consisting of company activities such as revenue plan from CPO & PK, volume and sales of CPO, projection of the CPO & PK price (per tons CPO & PK), costs in mill and es-tate (production cost and fixed cost), FFB process plan (FFB from nucleus, smallholder and out-grower), pro-jection of extraction rate (OER & KER), re-planting plan (year 2022 to year 2032 for year planted 1996 to 2006), projection of FFB production (tons/ha), total revenue, total cost and loss/profit. Also the company de-veloped a yearly plan as seen for year 2015 with scope of estate, mill and smallholder. In estate containing information on statement areas, executive summary budget, projection/budget of FFB production, detail of cost plan each type of activities. The management plan for Sikara-kara mill containing information on basic assumptions and total budget (FFB process plan, CPO & PK production, product quality stand-ard/requirement, extraction rate, processing cost and investment cost), distribution of CPO & PK per month-ly, and company work plan and budget for each activities. Whereas in smallholder areas containing infor-mation on statement areas, executive summary budget, FFB production projection, company work plan and budget for each activities.
During this surveillance audit, the company only showed business plan with insufficient data such as area statement, non-planted area for HCV, cost for CPO production and benefit prediction (income statement) and this condition raised as non- conformity (NCR 2015-04 of 09). The company implements plantation cycle every 25 years, the company still not make planning for a replant-ing activities which will only begin after the oldest planted area (year 1996) is 25 years old.
Compliance status: Non Compliance
NCR 2015-04 of 09 (Major Non-Conformity) :
Business plan has not sufficient information/ data including area statement, non-planted area for HCV, cost
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for CPO production and benefit prediction (income statement)
Principle 4: Use of appropriate best practices by growers and millers
CR 4.1 The organization has establish documented procedures (SOPs) for Mill and Plantation. The SOPs has listed in the document “Masterlist of Document and Controlled Copy Distribution”, issued at July 11, 2011, signed by Document controller and Management Representative.
The organization’s SOPs was cover all key processes, they are harvesting, transportation, manuring, inte-grated pest management (IPM), good agriculture practices (GAP), supply chain requirements, mill activities and also including SOPs for finance, legal and licence, human resources and general affair, OHS, and etc. All SOP of the organization has developed in appropriate language that is Indonesian Language (bahasa), and there is sufficient evidence that copy of relevant SOP available at point of use. The list of SOP showed as below:
- Finance Management
- Legal & Licence
1. Procedure of Licencing (SOP.Dir.LEG-01 Rev.0),
2. Identification and Evaluation of Compliance of Regulation & Other Requirements (SOP.Dir.LEG-02 Rev.0),
3. Procedure of Land Dispute and Land Indemnity (SOP.Dir.LEG-03 Rev.0).
3. Identification and Protection of Flora dan Fauna
4. Measurement and Monitoring of Land Erosion
5. Land and Water Conservation
6. Monitoring, Treatment and Utilization of Water Sources
- Procedure of Panitia Pembina Keselamatan dan Kesehatan Kerja (P2K3)
- Green House Gas (GHG)
1. Measurement and Mitigation of GHG
The orgnization has establish mechanisms for: � Record of training for all levels as defined in SOP of Training and Education of Employee (Doc No.
SOP.Dir-PUM-05, Rev.01, 03-01-2014)
� Internal control as defined in SOP of Integration of Internal Audit for QMS-EMS-RSPO-ISPO (Doc No.SOP.Dir.MR-04, Rev.1, 03-03-2014). In order to carry out internal audit control activities, the organization has assigned trained and competent personnel, they are:
1. Mr. Idris as Lead Auditor and
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2. Mr. Jafar Sidiq; Mrs. Sri Rahadi; Mr. J. Sihotang; Mr. Erwinsyah Putra, Mr. M. Subuh Harahap, Mr. Amin Harahap; and Mr. Henri as auditors.
Auditor were reviewed the records of internal audit that was conducting at Mill & Estate (June 03 – 06, 2015) and at Direction Office (June 08, 2015). There is sufficient evidence that the internal audit has conducted covering implementation of all the SOPs.
The organization has defined procedure to address non-compliance and corrective action for continuous improvement, that are:
Thre is sufficient evidence that the organization has maintain the following records:
- Internal audit No. 001/QEMS/IA/I/2014; Department: PKS, Estate and Office, audit period: 01 / year 2015; audit date: 03 – 06 June 2015 (Mill & Estate) and June 08, 2015 (at Office)
� Records of corrective actions and improvement undertaken
1. Corrective Action Request (CAR): 2 (two) Major
2. Log Book of Audit Findings:
3. NCR (Form/MR-12); Audit Date 8 June 2015; Findings Type: Major; Auditee: Husni Adam (Legal & Licencing). The form consist of Detail of Nonconformity, Root cause of problem, corrective & pre-ventive action was taken; verification effectiveness of corrective and preventive action taken (by auditor); Evaluation of corrective and prentive action was taken(by MR / Document Controller).
The organization has establish documented procedure concerning third-party FFB sourcing, namely SOP of FFB Receiving (Doc. No. SOP.Dir.PKS-11, Rev.02, issued April 01, 2014). The procedure was explain mechanism of FFB receiving from own plantation and third-party including mechanism of grading. Otherwise, the organization has no list of approved third-party FFB supplier, even so they SOP, there is sufficient evi-dence that the SOP has been implemented appropriately.
The organization has recorded all FFB received from third parties including data of volume and origins. Sample were reviewed are: documents “Rekap Produksi Real vs Budget for year of 2015. The data show that until July 2015, was recorded 86.406.127 kg of FFB from third-party. The data has appropriate with oth-er supporting data such as Daily Report documents. The mentioned data has been verified against available document, and the result show the data was match.
However, the observation was rise during this surveillance, i.e: there is some of reference that usage in SOPs was out of date, sample: the reference usage in the Procedure of Panitia Pembina Keselamatan dan Kesehatan Kerja (P2K3), document No. SOP-Dir.SMK3-01, has not include Goverment Regulation (PP) No. 50 Year of 2012, according to Implementation of Occupational Health and Safety Management System
The company has procedure for FFB purchase from third party suppliers No. SOP.Dit.MKT-01 rev 01 on May 9, 2014. Source of FFB from third-party suppliers are individuals, collectors/agen/dealers and compa-nies that partner with PT RMM. Prices followed the market price, the classification received fruit (fruit sand <5 kg are not accepted), FFB accepted refer to quality standards, pricing by the directors, General Manager is responsible for the quality of TBS, the price information was given by the marketing. Mechanism: Market-ing purchase search for supplier and explain TBS accepted quality standards and administrative require-ments, after agreeing the suppplier submit paperwork and sends FFB to mill.
There are procedure number Dir.PKS-41 rev 00 dated August 1, 2014 on Identification and Traceability of Raw materials in the production of sustainable palm oil. FFB purchases from third party suppliers must be investigated and ascertained in accordance with the norms of the specification, quality, time and compliance to the laws and regulations and the FFB source does not come from forest area.
There is a list of approved third-party FFB suppliers. In 2014 there were 12 suppliers with a total supply of 87,961,103 kg. Until June 2015 there were 11 suppliers with a total supply of 56,327,799 kg. The results of interviews with three suppliers (e.i AH, PPPRN and CV M) show that they have a list of sub suppliers. AH obtain FFB from community plantation in districts Natal. The procedure has implemented by evidence such as observation reports biographical data suppliers and customers. To ensure of FFB source, company have a program in 2015 started in September to visiting suppliers with the aim of ensuring that FFB is legal, make sure the location and distance to mill, ensuring land ownership and farmer's land does not enter the territory of forests. There are daily and summary records of volume and origins of third-party FFB received.
CR 4.2
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The organization has establish documented procedure concerning GAP in managing soil fertility that is SOP No. SOP.Dir.TAN-26; Rev.00; 05-05-2014, title: SOP Management of Soil Fertility for Optimum Productivity and Sustainable. The contents of procedure as follow:
1. Hilly land: Making contour terrace at land with 10 – 30 % of slove; making individual terrace; planting legume cover crop (LCC); planting strength penanaman tanaman penguat teras; Making pembuatan ro-rak atau kantong air, pada tanah landai, pada teras kontur dan dalam parit jalan; Application of an-organic and organic fertilizer, and etc.
2. Flat land and Peat Soil: applied water management and fertility. Water management applied such as: water gate and weir. The Function of water gate are:
� When rainy season: to prevent water from outside enter into plantation area in order to to prevent flood.
� When dry season: to keep water in the plantation area in order to maintain water level not drop into under minimal limit.
Watergate is located at plantation boundary, especially located at meeting point between main cannal and river or outlet.
The function of Weir are to maintain level of water surface at 60 – 80 cm from land surface. The weir is located at boundary of gatherer cannal with main cannal and/or along side of gatherer cannal.
There is sufficient evidence that the SOP have been implemented and monitored. The records were re-viewed are:
� Record of making contour terrace
� Record of making single terrace: (the data is until July 2015)
1. Afdeling I – 0 ha
2. Afdeling II – 0 ha
3. Afdeling III – 0 ha
4. Afdeling IV – 2,90 ha
5. Afdeling V – 7,12 ha
6. Afdeling VI – 0,35 ha
7. Afdeling VII – 0 ha
8. Afdeling VIII – 0 ha
� Record of rorak development
� Records of fertilizer (the data until July 2015)
1. Urea: 702.950,00 kg / 4,614 ha
2. CIRP: 1.128.500,00 kg / 4,614 ha
3. KCL/MOP : 1.036.900,00 kg / 4,614 ha
4. Dolomite: 878.500,00 kg / 4,614 ha
5. Borate: 7.991,00 kg / 4,614 ha
� Records of utilization of EFB (until July 2015) amount 22.936.460 kg was applied on 387 ha of area.
� Records of land application (until July 2015) was applied on 48,02 ha of area at Blok II.
The fertilizer recommendation for year of 2015 was available for Palm Oil - Aek Sikarakara Estate – Mandail-ing Natal, North Sumatera Province. The recommendation issued by Departemen Penelitian dan Pengem-bangan PT Sentana Adidaya Pratama Medan – January 2015. Sample of Leaf Sampling unit was taken on September 2014. Number of leaf sampling unit are 185 sample on around 5.214 ha of area. Otherwise, the basis of soil smpling unit still use result of laboratory analysis of 2012.
Based on the research results, the whole area of 5,214 ha suitable for palm oil plantations, in the category of land suitablility class S2 and S3. Potential production of S3 can reach 20 tonnes FFB/ha/year and S2 at 22 tonnes FFB/ha/year. On the whole area of PT RMM consist of actual land suitability class S3 and potential land suitability class S2. Soil and water conservation should be done well in PT RMM, because of the nature of soil erosion. The most important conservation treatment are terracing and planting legumes. Management of peat soil is highly emphasized by monitoring and measuring water level, should be monitored between 50-75 cm, in addition to the management of land and other technical culture.
Document of fertilizer recommendation contains information as below :
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1. Total of straight fertilizer needed for 2015 (kg)
a. Urea 1,593,358
b. RP Peru 1,288,364
c. MOP 2,353,968
d. Super dolomite 998,522
e. Boron 79,882
f. CuEdta 13,314
g. ZnEdta 6,657
2. Total of compound fertilizer needed for 2015 (kg)
a. NPK 13-6-27-4 +0.65B: 5,261,465
b. CuEdta: 13,314
c. ZnEdta: 6,657
3. Total of fertilizer needed, was contains information area (ha),number of tree, population (tree/ha), ferti-lizer tree, dozes (kg/fertilizer/year),fertilizer needed, and month of application
4. Fertilizer needed each afdeling, contains information of area (ha), number of tree, population (tree/ha), fertilizer tree, dozes (kg/fertilizer/year),fertilizer needed, and month of application.
Fertilizer needed each afdeling each year of plant, contains information of area (ha), number of tree, popula-tion (tree/ha), fertilizer tree, dozes (kg/fertilizer/year), fertilizer needed, and month of application. The organization has a documented SOP for tissue and soil sampling, namely SOP Palm Oil Fertilizer (No. SOP.Dir.Tan-10, Rev.00, 11 July 2015). The SOP said: “Leaf sample will take every year on September and soil sample will take every 5 (five) year by Research Team”. And furthermore, based on the result of leaf analysis, fertilizer recommendation issued by Research Team. This recommendation is used as working guidance of fertilizer.
In order to ensure that the SOPs has implemented appropriately and including availability of records, auditor was reviewed some related records, such as:
� Leaf sampling unit was taken on September 2014
� Document of Fertilizer Recommendation of 2015, for PT RMM Kebun Aek Sikarakara – Mandailing Na-tal – was issued by Research & Development Department PT Sentana Adidaya Pratama Medan – Januari 2015.
� Fertilizer Recommendation of 2015
� Fertilizer Programme of 2015
The above records was demonstrate that the SOP has well implemented.
The record of tissue and soil analysis has maintained appropriately. For example the organization maintain the records of tissue analysis for year of 2014 and 2015 and Soil Analysis for year of 2012.
The fertilizer programme of 2015 was established by taking into account results of the study. For example, the data of Fertilizer Programme for periods January – December 2015, at Afdeling I, Fertilizer Planning for Semester I Tahun 2015 was appropriate with the recommendation. The data is as below:
- Urea: 96.650 kg
- Rp Peru: 145.000 kg
- MOP: 138.850 kg
- Super Dolomite: 120.850 kg
- Boron: 9.666 kg
- CuEdta: 1.611 kg
- ZnEdta: 806 kg
The organization has establish a documented procedure for a nutrient recycling strategy namely SOP Utili-zation of Palm Oil Mill Solid Waste (Empty Fruit Bunch/ EFB), Doc. No. SOP .Dir.TAN-22, Rev.00, 03-03-2014. The strategy was include the following:
- Clear objectives and time-bound targets was stated in the procedure, that are:
1. Improve physically, chemical and biological properties of soil and increase nutrient of soi, to support the healthy palm oil growing in order to achieve optimum FFB production, and to increase immunity
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of palm oil to pest and disease.
2. Bringback the soil nutrient that was carried over to FFB processes at POM, by applied FB into land (1 ton EFB was contains nutrient of 3 kg urea, 0,6 kg CIRP, 12 kg MOP dan 2 kg Kiserit in approxi-mately)
3. EFB application very useful as mulsa, so can increase soil humidity and weeds growing will be op-pressed and also to prevent erosion of soil surface
- Inventory of
� EFB:
� POME:
� Fibre:
� Boiler ash:
� Kernel shell:
� Palm residues from replanting:
- Biomass recycling program:
Implementation and monitoring records
CR 4.3
The company has soil map scale 1:10,000 completed with geographical coordinate reference for each sec-tion (Afdeling I until VIII and Afdeling Plasma). The maps show that there are six soil map units within the estate area, which are red yellowish podsolic, brown yellowish podsolic, red yellow podsolic, alluvial grayish brown, peat soil association with alluvial watery and organosol (peat dept 0,5 – 2 meters). The company has a peatland distribution maps for nucleus and plasma estate with a scale of 1: 10,000. The Company has determined the peg mounting points representing subsidence depth levels of low, moderate to high for all blocks. Source of peat land distribution and its characteristic comes from field research (a semi detail soil survey). Peat land distribution map for the entire area of PT RMM as shows below
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Fig. Peat land in PT. RMM concession
In addition to soil map that describe the distribution of fragile soil (peat land), PT RMM also has topographic map describing slope classes in the entire concession area. The company has already strategy to maintain the estate with the critically condition i.e. estate with slopes above certain limitas. Based on the slope map, 77.05% of area (3,818.40 hectare) has a contour flat (slope 0-8°), 14.66% (726.32 hectares) has a contour ramps (slope 8-15°), 6.45% or 319.77 hectare has choppy (15-25°), 1.78% or 88.16 hectare of hilly slope (25-45°) and 0.07% (3.35 hectare) has mountain slope (>45°). The steeper area found in Afdeling IV, V, VI, VII, and some erosion control markers has been installed for monitoring the erosion, for example in block F2 Afdeling VI there are 5 erosion monitoring markers installed. Erosion monitoring is done every month and recorded. As observation: this data ought to be compiled and used for develop a strategy for crop man-agement on sloping land, and as the observation, in the future strategy of planting on slopes should be made based on soil characteristics, slope and erosion of data.
The Company has procedures SOP.Dir.TAN-02 rev. 0, the date of issue July 11, 2011 which regulates the zero burning for new planting, replanting and conversion planting. In the procedure have noticed the principles of soil and water conservation, for example, noted that in areas with a slope of 10-15 degrees made individual terrace, for areas with a slope of 15-45 degrees made contour terraces to prevent erosion. Land with a slope> 45 ° is not planted. The company also planted Pueraria javanica, Colopogonium muconoides, Mucuna cochinchinensis, Centrosema pubescens, and Mucuna sp and Mucuna bracthtiata to reduce surface erosion when plants are juvenile.
The company also has a soil and water conservation procedures SOP-05-Dir.NKT issue dated 1 April 2014. The procedure regulate in ways that prevent or minimize erosion by planting legumes, drainage ditches, wa-ter holes, terrace, hoof, mulch, etc., as well as erosion prevention techniques.
The Company has a procedure to repair and maintenance of road, SOP.Dir.TAN-16 rev 00 dated July 11, 2011. According to the procedure, road maintenance done by maintaining the surface layer of the road and road ditches on both sides of the road. Road maintenance should be carried out mechanically 1 time for 3 months on main road and 1 times for 6 months on the collection road. The company also manually make a small trench to drain the water from the ditch beside the road to the plant area immediately following the implementation of road graders, selectively maintenance implemented after rain, and road hardening implemented gradually every year. Road maintenance has been programmed annually as stipulated in the work plan and budget plan.
Road maintenance recorded in Report of Plan / Actual Pavement and Road maintenance, for example until July 2015, road maintenance has been carried as along a 389.974 m. Another recording of evidence is a re-quest for payment No.01 / PP / RMM / SKK / VI-VII / 2015 by Ivan Wibowo Tan contractor for road mainte-nance work in June-July 2015.
The company has set up some stakes to measure the subsidence of peat and make bundoff for water management in peatlands. Based on observations in the field, subsidence markers have been installed in Block A5, B14 - B18, C14, C15, C1-C6, E12, E13, H3-H14, and Afdeling Plasma Block P3, 5, 6,7, P12-17. The company also has installed a water table stakes in a number of points. The method is used to measure reduction in peat is by observing the difference in subsidence of the initial data observed every month.
Measurement of soil erosion carried out in block D15, E6, F2, G2, starting in April – May, 2014. Daily measurements of water level in the peat area conducted in June in block E12, E13, measurement of rate of decline in peat soil and measurement of the water level in the canal / drainage E12, E13.
Although there are peat land of 15.24 ha, but peat land management guidelines in the PT RMM is not avail-able. Subsidence monitoring is done by placing measuring peg in each Afdeling, however the monitoring schedule has not been set. There is evidence of subsidence monitoring of recording in July 2015 in AFD III, where there is a decline in the face of peat, which reached 5.5 to 6 cm. Water level management also con-ducted every day and recorded by field worker, but the management does not use this data. The data is on-ly recorded without any action in response to changes in the value of the water level. The workers only know that, if visually the water is too high then the block will be opened. There is no set procedure to guide what is done on the monitoring results, including criteria for water level figures.
This monitoring activity is not based on a guideline or a standard procedure, so that when the measurement data acquired but not used to manage water level. This condition raised as non-conformity (NCR 05 -2015 of 09). Existing procedures in the management of peat land is about clearing and planting oil palm on peat land (SOP Dir.Tan -24), but it was not including about water management and peat subsidence monitoring.
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CR 4.4 The company has protected their watercourses, evidenced by riparian, HCV and housing areas are lanted with sungkai (Peronema canescens). Realization of riparian planting as many as 2,419 trees in 2013, and 4,240 trees in 2014, planting in HCV areas of 100 trees, and in emplasmen total of 110 (in 2013) and 62 trees (2014). The company also marking in the palm oil tree to maintain riparian zone with about 50 meter from the river just for manual maintain/no chemical maintain.
In an effort to avoid the erosion of the river banks, the company has a procedure SOP-02-DIR.NKT rev 00 dated 02-09-2013 River Protection, to ensure that all activities within the framework of watershed protection can be implemented. Procedures set things up as follows :
- Creates a river bank as HCV areas which are the areas that must be managed and protected
- Prohibit new oil palm plantings in riparian areas
- In areas that have been planted then fertilizing with organic fertilizers (should not use chemical fertilizers) and there should be no chemist activities that can pollute the environment. Principal marked red paint on palm oil tree.
The company also has a procedure SOP-DIR.NKT-04 dated 01-04-2014 rev 00 Measurement and Monitoring Soil Erosion, by placing stakes erosion in certain areas.
Area PT RMM traversed by the Sirah River, Buburan tributaries, small waterfall Sikarakara, Kodok River, Kunkun River, Payung River, Talimun Gadang River, Bintuas River and Sao River. The rivers are still under the influence of tidal freshwater conditions. There is some signboards inform that no chemicals use in ponds. Field observations indicate that the weeding activities in border areas done manually. Along the river, grasses and plants are allowed to grow naturally to resist erosion.
The company has a procedure on the management and monitoring of water resources, SOP-DIR.NKT-06 rev 00 dated 01-04-2014, as a guide in the implementation of monitoring and utilization of water resources to serve the needs of life and health of employees and community while maintaining the balance of nature.
The Company has identified the sources of water in the plantation area douche / basin / reservoir / river. Complete data are presented in the following table :
Table 8 Water Sources in the Area of Plantation Afdeling Block Coordinate Water Sources Used
I A18 N 00°40'12.8" E 099°07'42.0" reservoir from Sirah river Wash, bath and toilet
I F1 N 00°41'11.7" E 099°07'59.8" Douche Wash, bath and toilet
II B22 N 00°39'30.8" E 099°05'34.0" Reservoir Wash, bath and toilet
III Mill N 00°39'58.3" E 099°05'26.8" reservoir from Bintuas river Wash, bath and toilet
III C10 N 00°41'01.8" E 099°05'18.8" Douche Wash, bath and toilet
IV D1 N 00°41'17.1" E 099°08'39.7" small reservoir Wash, bath and toilet
IV D1 N 00°41'15.3" E 099°08'35.0" running water Wash, bath and toilet
V E3 N 00°43'12.7" E 099°07'45.3" Reservoir Wash, bath and toilet
VI F11 N 00°42'47.4" E 099°07'35.2" Reservoir Wash, bath and toilet
VI F1 N 00°41'11.7" E 099°07'59.8" Douche Wash, bath and toilet
VII G3/4 N 00°45'51.3" E 099°05'11.1" Reservoir Wash, bath and toilet
G4 N 00°45'23.8" E 099°05'59.3" Douche Wash, bath and toilet
VIII H8 N 00°44'10.4" E 099°05'51.9" Reservoir Wash, bath and toilet
G4 N 00°45'23.8" E 099°05'59.3" Douche Wash, bath and toilet
Plasma P1 N 00°43'01.3" E 099°06'53.3" Kunkun river Wash, bath and toilet
P2 N 00°43'11.3" E 099°06'55.3" Douche Wash, bath and toilet
Water resources are managed and utilized for bathing and washing by employees. For the purposes of cooking, employees and their families use water refill subsidized by the company. Most of family also using the river water but after purification process and boiling.
The company could show water resources management program, but the it is still not covering identification of water sources, water use efficiency plan, access to clean water sources for employees and the surround-
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ing community, and plan avoidance of contamination of surface water and groundwater through monitoring activities. As observation: water management should be arranged systematic and containing the things that important to inform.
The company has been monitoring the quality of surface water utilized by employees conducted by Sucofindo, a testing laboratory. Last measurement was conducted on 20 April 2015 (the date of the certificate 30 April 2014) evidenced by certificates number 03160 / CLACAH, number 03161 / CLACAH, number 03 162 / CLACAH, number 03 163 / CLACAH, number 03 164 / CLACAH, number 03 165 / CLACAH, number 03166 / CLACAH number 03167 / CLACAH, number 03 178 / CLACAH, based on Permenkes No. 492 / Menkes / PER / IV / 2010, standard of quality for drinking water. Water quality of Sungai Bintuas also tested with results BOD 2.0 mg/l and pH 6,65 and fat /oil level of 0,16 mg/l. This value indicates the surface water of Bintuas river is clean and could be used for shower, washing and cooked drink water
Monitoring of effluent BOD conducted periodically every month. Measurements were performed by the Sucofindo Laboratory, Medan, which sample taken from inlet pond, pond No. 5 (before it is released to the land application), pond number 9 and pond number 10. Effluent analysis results showed that BOD results for the mill were all below 5000 mg/l, which is within the limit for land application as stated in the mill permit and below 100 mg/l for effluent into the Bintuas river.
Based on the data flow meter recorded on Log Sheet Water Treatment, water use information obtained for the production process and residential / domestic as follows :
Tabel 9 . Water usage data PT RMM year 2014
Year FFB Processed (ton)
Water Consumption (m3) M3/ton FFB
(only process) Domestic Mill
2014 222,596.50 84,108 424,615 1,91
CR 4.5 The organization has establish a mechanism for dealing with IPM, as documented in SOP of Control of Pest and Disease of Palm Oil (SOP.Dir.TAN-21, Rev.00, 1 Juli 2013). The SOP was describe the control of pest and disease mechanism through biological and chemical ways. The SOP also said that Implementation of early warning system (EWS) in order to detect pest and disease attack earlier, and as part of implementation of Integrated Pest Management (IPM). The SOP also said: Biological control will be prioritize and minimize pesticides usage in each cases, so vision “clean and healthy food” can be achieved.
The IPM plan was available in the document of “Program Pengendalian HPT dan Rencana Kerja Deteksi Dini dan Inang Predator”. The IPM plan include the following items:
• Identification of potential pests and thresholds, the organization has defined potential pest and it thresh-old, they are hama ulat api, hama tikus, ganoderma, hama rayap, and oryctes. However, the identification not include thresholds of potential attack of each pests.
• The techniques used (cultural, biological, mechanical and physical methods), technique and methods to control detected pest and disease are using biological methods as priority, they are by develop nature predator, sample tyto alba to control mouse.
• There is no native species found.
• During this surveillance audit, the data that show weather the IPM implementation can reduce the use of chemical over a period time or not has no available yet.
• One of purpose of SOP is to minimize pesticides usage. However, during surveillance audit, the organi-zation can not show related data.
There is an SOP to implement the plan and monitor its effectiveness namely SOP Internal audit. There is records of pest occurrence and control, such as:
� Monitoring of Tyto Alba, until June 2015, found 42 pcs (mother)
� Recapitulation of Plan and Realization of Ganoderma Detection year of 2015, until June 2015, 615 of palm oil has attacked (afdeling I –VIII) and 69 of palm oil at plasma attacked.
� Recapitulation of Plan and Realization of Hama Rayap (Census of IPM) year of 2015, until June 2015, was found 4.089 palm oil was attacked (afd I – VIII) and 742 palm oil attacked at Plasma.
� Recapitulation of Plan and Realization of Hama Tikus year of 2015, until June 2015, was found 3.682
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palm oil attacked (afd I – VIII) and 793 palm oil at Plasma
� Recapitulation of Plan and Realization of Hama Oryctes (IPM Cencus) year 2015, until June 2015, was found terdapat 16.053 palm oil has attacked (afd I – VIII).
� Recapitulation of Plan and Realization of Ulat Api IPM Census) year of 2015, until June 2015, there is no attack.
� Recapitulation of Plan and Realization of Ulat Kantong (IPM Census) year of 2015 until June 2015, there is no attack
The last training of Pests and Diseases of Oil Palm (IPM) was conducted on June 15, 2014 with the number of participants 13 people from afdeling. The training was conducted by Estate Manager (Mr. Syofian Nasu-tion and M. Irwan S. (act as Estate Manager). The attendance list and training kits are available.
CR 4.6 The organization have a policy on safe use of chemicals, that is “Kebijakan Keselamatan dan Kesehatan Kerja/ Health and Safety Policy” Doc No. 08/Dir.RMM/2014, Rev.01, 1 Mei 2015. The policy was signed by Director of PT RMM (Mr. Saiman Wagimin). Especially for safety chemical usage policy is found at point 5, “Menghindari dan melarang pemakaian bahan kimia berbahaya pestisida yang masuk kategori Badan Kesehatan Dunia (WHO) kelas 1A atau 1B, atau tercantum dalam Konvensi Stockholm atau Rotterdam dan Paraquat, tidak digunakan”/ To avoid and prohibited usage of hazardous pesticides that categorized as ILO Class 1A & 1B, or listed at Stockholm or Rotterdam and also Paraquat is not used.
The organization have SOPs for use of selective products that are specific to target pests, weeds, or diseas-es and which have minimal effect on non-target species by pesticide rotation system. List of all pesticide and justification of use are available. All pesticides using by the organization has already approved and registered by the Indonesia government through the green book of Registered Chemical 2013 issued by the Pesticides Comission, Directorate General of Crop and Estate, Ministry of Agriculture. The company also has register their cemicals to the Ministry of Labour c/q Labour Offices in Mandailing Natal Regency evidenced by the letter application number 141/GM-RMM/VI/2014 dated June 19, 2014 related to the chemical use in the workplace. The justification of pesticides use was consider less harmful alternatives and IPM.
The procedure was established to manage pesticides usage, namely SOP Penggunaan Pestisida dan Pengelolaannya/SOP Pesticides Usage and Manage (SOP.Dir.TAN-25, Rev.00, 01-04-2014); The procedure was classify the pesticides base on their usage objectives, reactions, formulation, sources & chemical properties, and base on their reactivity, as below:
1. Usage objectives (fungisida, herbisida, insektisida, rodentisida, and akarisida)
2. Way of working (Physic, protoplasmic, metabolic blocked, and nerve)
3. Sources & chemical properties (Syntetic: anargonik & organic and planting source)
The SOP also said, the selection of pesticides formulation used to control of weeds, pests and diseases are should be well known first before usage, then the usage of pesticides effectively. When pesticides are purcased shoud be ensure the label at container read carefully, especially type of weeds, pests and diseases, direction of usage, and potential hazards. Purchased pesticides also should be registered and licenced by goverment. The purchased pesticides should be well genuine wrapped and labeled (i.e: registered number, complete name and address of producer, and etc).
There is sufficient evidence that the SOP is well implemented on the ground. Some of documents were reviewed such as pesticides application programme, records of pesticides used, Programme of IPM, and etc. The company have complete listing of WHO class 1A, class 1B, and Stockholm and Rotterdam Convention pesticide. The company has establish a policy and procedure to minimise and eliminate use of these pesticides including paraquat. The company has no use paraquat anymore. Physical verification of inventory in the chemical store has done and found agree back to the inventory records, as shown in the documents at TPS LB3, they are pesticide usage data and used container data.
The company has a training programme for year 2015 as shown in the Training Programme document (SOP.Dir.PUM-06). The progamme has included for worker who apply or handle pesticides. The training was performed by competent personnel internally (JF Sihootang/P2K3-AK3 Umum, Erwinsyahputra/P2K3-Hiperkes dan Eri A. Butar-butar/P2K3-AK3 Kimia) at August 08, 2015. Training records such as attendance
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list and training materials are available. Training include basic safety, safety for pesticide, and work illnesses. The training was attended by personnel who handle pesticides such as chemist, fertilizer, and etc. The training was conducted in bahasa Indonesia by internal personnel of the company.
The responsible pesrsonnels who handle, used and applied of pesticides has only by persons who have completed the necessary training. The implementation was observed, as interviews with chemist who handle chemist, they can demonstrate understanding the hazards and risks related to chemicals used. All chemist personnels are equipped with PPE appropriately. The risk assessment has taken into account in the PPE recommendation and selection. The PPE is provided by the company, including if any damage. The personnels chemist and harvest who interviewed related to this issue said, the damaged PPE can be replaced easily by exchange the damaged one with the new one. In order to ensure that workers applied appropriate PPEs, the field leader (mandor) always check before they are starting work.
The company has provided a storage room for pesticides and its their facilities and utilities. The storage room are well ventilated, good access for materials handling, sufficient lighting, and etc. There is sufficient evidence that empty pesticide containers are properly stored and disposed off.
There is evidence observed in the field that pesticide containers are not indiscriminately disposed (in dump site) or used for other purposes, .e.g. as waste containers or flower pots.
The company has provided information materials on pesticide handling to all employees by placed MSDS at information boards, and also present to all related workers directly. The company has establish training programme in order to maintain worker awareness and competency, including on chemical handling.
The company has estalish a documented procedure for proper disposal of waste material, namely SOP Pe-nanganan Limbah Bahan Beracun dan Berbahaya/Hazardous Waste Handling (SOP.Dir.PKS-37; Rev.01, 12-12-2011) and SOP Penyerahan Limbah Bahan Berbahaya dan Beracun/Hazardous Waste Disposal (SOP.Dir.PKS-38; Rev.00, 11-07-2011. However, the reference used in this SOP has not updated, the reference not included the latest regulation, that is Regulation of goverment of Indonesia No. 101 year 2014, concerning Hazardous Waste Management (PP 101 Tahun 2014, tentang Pengelolaan Limbah Bahan Ber-bahaya dan Beracun)
Training programme year 2015 has been established not include yet training for proper waste disposal. However, there is evidence of implementation of proper ways for waste disposal by the company, that are:
- Domestic waste was disposed according to known best pactice by make landfill.
- Hazardous waste was given to third party who have licence to manage hazardous waste.
The company has an updated list of employee/worker, namely Laporan Perkembangan Personalia (LPP) Data Staft dan Karyawan/ty (Report of human resources). There is no specific list of chemist worker in the document. However, there is remark for each worker, such as personal data and his/her position and responsibility. Based on the document, there are 24 (twenty four) chemist worker for periods July 01 2015 till July 31, 2015, they are: Norma Batubara, Tutuk Herawati, Lisma, Hesti, Riani, Dauria Harahap, Hartanti, Me-lia Halawa, Masilina, Kurniawati, Satiba Laila, Rina Duha, Agustina Harefa, Suci Hati Sarumaha, Serasi, As-nita Hulu, Dedi Suryani Siregar, Irman Lase, Listrina, Yufen Lase, Martalina Lawoto, Tari Zebua, Martina Gulo, and Karlina Nduru.
There is records of annual medical surveillance of pesticide operators. Some records were reviewed, i.e resume of periodic medical surveillance, dated March 24, 2015 and its related documents. There is sufficient evidence that all chemist/pesticide worker/operator has got medical surveillance including complete hematology and cholinesterase, they are Norma Batubara, Tutuk Herawati, Lisma, Hesti, Riani, Dauria Harahap, Hartanti, Melia Halawa, Masilina, Kurniawati, Satiba Laila, Rina Duha, Agustina Harefa, Suci Hati Sarumaha, Serasi, Asnita Hulu, Dedi Suryani Siregar, Irman Lase, Listrina, Yufen Lase, Martalina Lawoto, Tari Zebua, Martina Gulo, dan Karlina Nduru. The records of medical and treatment of all pesticide opera-tors are available, such as record of periodic medical surveillance of employee/worker, resume of results of medical check up and etc. The records in the name of Dauria Harahap dan Merianti Gulo were reviewed.
The company has a policy statement preventing pregnant and breast-feeding women from handling pesti-cides as stated in the Form Letter No. 04/SE-SM/RMM/V/2015; according to Worker Protecion and Prohibition (Perlindungan Tenaga Kerja dan Larangan). In the article no. 10 of the letter said: “Pregnant and breast-feeding women is not allowed to handle chemist (pesticides spraying) or fertilizer job or handle hazardous materials. Based on the interview results with chemist worker, there is sufficient evidence that the policy has been communicate appropriately.
From the data, most of chemist employee/worker are female, and the company has a mechanism to identify and ensure pregnant and breast-feeding women, that are by self declaration, consultation & checking by
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paramedical and internal communication.
CR 4.7 The company has define a health and safety policy that is Health and Safety Policy (Kebijakan Keselamatan dan Kesehatan Kerja) Doc. No. 08/Dir-RMM/2014, issued at May 15, 2015; Rev.01. The policy was written in appropriate language, that is Bahasa Indonesia, and approved by Direktur Utama (Manaaging Director). The policy was cover mitigation of risks to workers health and safety at all workplace activities, as stated at number 2: “perform hazard identification and risk assessment and risk control at all company processes and activities (melakukan identifikasi Bahaya dan Resiko serta pengendalian resiko di masing-masing proses / aktivitas perusahaan).
Health and safety plan are available in place, as documented at Pogram P2K3 Tahun 2015 document. The plan was not include targets for improving occupational health and safety and the plan do not reflect guid-ance provided in the ILO Convention 184 (see Annex 1). The ILO Convention 184 was missed from list of legal and requirements identification.
The company has been conducted risk assessments been for almost all operations where health and safety is an issue. However, the assessment has not fully refer to SOP was defined (No SOP.Dir.SMK3-12; Rev.00; June 17, 2014), such as impact or risk assessment has no take account of existing control effectiveness to define whether the risk is acceptable or not. For example, risk assessment and control of Sterilizer process, potential hazard is explosion, the occurrence stated C (may be happen) and Severity stated 5 (fatality, loss of materials very big); and the result Risk Level is E (extreme risk, immediately handling and action are needed). Otherwise, there is existing risk control applied by the company such as certification of sterilizer according to regulations, calibration of monitoring and measurement equipments, and provide emergency response equipments.
There is some organization’s processes and activities does not covered in the risk assessment such as activities of harvesting under electrical wire of PLN, maintenance activities, and activities at Press station.
The company has a documentd procedure to address if any accident occured that is Procedure of Investigation of Accident and incident/Prosedur Investigasi Kecelakaan Kerja dan Insiden (Doc. No. SOP.Dir.SMK3-02; Rev.00; 02-09-2013).
The company has provided appropriate PPE to all worker at the place of work to cover all potentially hazard-ous operations, such as pesticide application, machine operations, and land preparation, harvesting. There is sufficient evidence that the PPE provided to workers and replaced when damaged. The list of PPE distri-bution and list of PPE’s user has available. Based on observe to harvesting and chemist spraying, there is sufficient evidence that worker observed wearing appropriate PPE.
The company has identified the responsible person/persons to implement OSH according to relevant regulations. The company has an organization, call P2K3. The organization has already approved by authorized goverment (Head of Citizenship Administration, Social, Labour, and Transmigration of Mandailing Natal District (Kepala Dinas Kependudukan Catatan Sipil, Sosial, Tenaga Kerja dan Transmigrasi Kabu-paten Mandailing Natal). No. Kep.470/2045/DKCST-MN/2015, concerning of P2K3 of PT Rimba Mujur Mahkota, dated July 28, 2015.
There is sufficient evidence that the organization has conducted on a regular basis (every 3 months) that attended by responsible persons and workers required by law. Some records were reviewed that is:
1. Performance Report of P2K3 for period January – March 2015,
2. Performance Report of P2K3 for period April – June 2015 The data including attendance list, meeting minutes, and issues discussed.
The first aid equipments are available at worksites during conduct of field manual work. All group of worker equipped by first aids kit. There is sufficient evidence that the first aid kits contain has complied in accordance requiements. Update and detil of first aid kits are available. Records of all accidents are kept. However there is no evidence that the organization has periodically reviewed for continuous improvement.
There is evidence that all workers are provided with medical care and covered by accident insurance by the company, including for contract workers. The records were reviewed i.e:
- BPJS Participant data of Mill Employee and their responsible for May and June 2015 - Report of BPJS Kesehatan Participant for periods May and June 2015 - Report of Jamsostek Participant for May and June 2015 - List of Jamsostek Member, has recorded employee data for July 2015, as follow: KBT: 156 persons;
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KHT: 415 persons; and KHL: 450 persons There is evidence that the insurance policies are valid, the records and documents were reviewed and conformed. For example:
- Document of work agreement (PKB) between the company with Employee Union (SPKP – PT RMM) year of 2014, established in Medan June 2014. This document still valid until 2016 and has approved by authority goverment through Decision Letter Goverment Services Head of Labour & Transmigration (Kadisnakertrans) North Sumatera Province, No. 231-6/DTK-TR/2014, concerning of Registration of Working Agreement (Perjanjian Kerja Bersama) between the company (PT RMM) dated May 20, 2014. Related to the insurance policy, has stated on Article 29 (Social Incurance for Worker), said that: “the company taken part in worker social insurance programme (Jamsostek), according to law No. 3 Tahun 1992 jo PP Nomor 83 Tahun 2000, including:
1. Insurance of Accident (Jaminan Kecelakaan Kerja / JKK)
2. Insurance of Mortality (Jaminan Kematian / JK)
3. Insurance of Old (Jaminan Hari Tua / JHT)
- Records of insurance (Jamsostek) payment for July 2015, found there is deductio for insurance (JHT + JKK + JKM) = totally Rp126.803.317
The company has occupational injuries recorded by using Lost Time Accident (LTA) metrics, the data of accidents and injuries as below:
- January 2015 : 14 times of accident and 3 days losses
- February 2015: 15 times of accident and 6 days losses
- March 2015: 18 times of accident and 7 days losses
- April 2015: 29 times of accident and 29 days losses
- May 2015: 29 times of accident and 29 days losses
- June 2015: 32 times of accident and 32 days losses
- August 2015: 22 times accident and 22 days losses
CR 4.8 There is a standard operation procedure for training has been established by PT Rimba Mujur Mahkota as seen on SOP.Dir.PUM-05 issued on April 1, 2012. In addition there are procedures No. Dir.PUM-05 dated January 3rd, 2014 on Employee Education and Training, and Assessment Matrix Competition.. This proce-dure set needs training, internal and external training,
Employees who work in the plasma gets the same rights as working in the nucleus. Evidence of that can be shown is a list of attendees of training for workers in plasma and nucleus estate on training for OHS intro-duction and basics, OHS for Pesticides and Occupational Diseases on August 8th, 2015. The first aid train-ing for occupational accidents dated July 27, 2015.
Record company training has been done. Formal training and certified that has been conducted among oth-ers: training HCV, RSPO and ISPO Auditor training, coaching training for Supervising on Occupational Health and Safety (OHS) in Chemistry. Competition An Improved training of Technical and Managerial Plant for Foreman, Production Management and Development Program, GHG calculation training, and first aid training.
At each meeting in the morning before work, the workers get the discourse of supervisor / foreman. As ex-ample for fertilizing and spraying workers, discourse covers:
• The health and environmental risks of pesticide exposure;
• Recognition of acute and long-term exposure symptoms Including for the most vulnerable persons such as pregnant women; and
• Productivity and best management practice.
The organization has been training program in estate and mill e.g. for year 2014 and 2015 where informed the title of training, type of training or trainer (in-house training (internal) or public training (eksternal)), quan-tity of participants or trainee and has been authorized head of HRD department.
The company has used experience or trained sub-contractor (third parties) with evidence of list of sub- con-tractor and records of sub-contractor selection process example is PT Raja Mampu Teknik as developver of housing. It process appropriate with selection, evaluation and re-evaluation for sub-contractor procedure
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(SOP.Dir.TEK-01 dated on November 29, 2011).
Although training program has already set up, but the kind of trainings and workers whom must be trained are not based on any data or analysis needs. The Company has not made a list of employees and staff who need training, so priority scale for this type of training and workers who need training are still not available. The absence of regular training need assessment caused lack of information on training priority. There has never been a Training Need Assessment created. There is already a history of training card, which records the type of training that has been available to all workers, including the implementation time. Also available employee competency matrix for assessing the ability of employees on various aspects. However, this data is not used for training needs assessment. Training needs based solely on the needs of sporadic and deliv-ered orally, not through official procedures. This condition raised as Non-conformity (NCR 2015-06 of 09)
Compliance status : Non Compliance
NCR 2015-05 of 09 (major non conformity) There is no guidance or procedure to manage peat land especially in subsidence and water level manage-ment.
NCR 2015-06 of 09 (Major Non-Conformity) :
• The company is not maintain list of workers or staff who need training, and training need assessment is not available to determine kind of training that needs to be done.
NCR 2015-07 of 09 (minor non conformity)
• Report of Occupational Safety and Health Committee were submitted to the Department of Labor Man-dailing Natal regency dated July 13, 2015 did not include accident report and its analysis.
• Records of the results of investigation of occupational accidents in 2015 is not yet available.
NCR 2015-08 of 09 (Minor Non-Conformity) :
a. Report of Occupational Safety and Health Committee were submitted to the Department of Labor Mandailing Natal regency dated July 13, 2015 did not include accident report and analysis
b. Records of the results of investigation of occupational accidents in 2015 is not yet available.
Principle 5: Environmental responsibility and conservation of natural resources and biodiversity
CR 5.1 Environmental impacts are identified and recorded in document of “KA-ANDAL” for estate and mill on behalf PT Rimba Mujur Mahkota on July 2008. This document legal and has approved on July 2008 by Head of Environmental Impact Management Agency District Mandailing Natal on the letter number 660.2/007/BPDL-MN/2007 dated October 15th, 2007, and also has approved by Regent of Mandailing Natal District letter number : 660/1949/BPDL-MN/2008 dated Agustus 20th, 2008 for PT Rimba Mujur Mahkota. Prior to ap-proved by Environmental Agency and the Regent of Mandailing Natal, a public consultation has been made on August 30th, 2007 to collect and opinion from the stakeholder, and also a technical review panel has been conducted on September 25th, 2007. During audit, there is no revision for environmental document.
Type of impact are managed and monitored consisting of physical component of chemical, the increase in the rate of erosion, degradation water quality, waste water, solid waste, potential fire, biological component,
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disruption of flora, fauna and aquatic biota, social component, land acquisition, employment opportunity, and environmental health.
Record of implementation of Environment and Social Assessment as periodically report of environment performance by PT Rimba Mujur Mahkota for period of July – December 2013, the report submitted to Regent of Mandailing Natal District via Head of Environmental Agency Northern Sumatera Province, on February 5th, 2014
CR 5.2
PT Rimba Mujur Mahkota has conducted an assessment and identification of protected, rare and endangered species and HCV habitats within their area. An identification of flora and fauna has been carried out by a consultant i.e Yayasan Kelapa Sawit Berkelanjutan Indonesia (YASBI) in year 2013 with assessor team are Purwo Susanto (Leader team), Iksal Yanuarsyah, Koko Erliyanto, Iing Nasihin, R.Sukasmianto, Hery Prasetiyo and Sudarman. Two of them as RSPO approved HCV assessor i.e Purwo Susanto and Iing Nasihin. The results of these assessments are documented in PT RMM’s HCV identification and assessment report where has carried out consultation public dated on April 13, 2013 at government elemen-tary school Fillial 374, Sikarakara III village and Natal Sub-District.
Based on the HCV assessment report it was stated that 5 types of HCVs were identified in PT RMM, i.e. HCV 1 (areas with important levels of biodiversity), HCV 2 (natural landscapes & dynamics), HCV 3 (rare or endangered ecosystems), HCV 4 (environmental services), HCV 5 (natural areas critical for meeting the basic need) and HCV 6 (areas critical for maintaining the cultural identity of local communities). HCV object are secondary forest hill in afdeling 5 & 7 (HCV1.1, 1.2, 1.3, 2.3, 4.1, 4.2, ), riparian Kunkun River (HCV1.3, 1.4, 2.3, 5, ), Tengkorak hill in smallholder area (HCV4.1, 4.2), Conservation hill in afdeling 5 (HCV4.1, 4.2), riparian Bintuas river (HCV4.1, 4.3), riparian Buburan river (HCV4.1), riparian Payung river (HCV4.1, 5), ri-parian Sao river (HCV4.1), riparian Sirah river (HCV4.1, 5), riparian Talimun Gadang river (HCV4.1, 5), Si-karakara small waterfall (HCV4.1, 5) and small waterfall in Barak (HCV4.1, 5), Bukit Solok cemetery (HCV6) and public cemetery (HCV6) so that total HCV area in PT RMM is 432.91 Ha. Based on the result of identifi-cation HCV assessment that there are protected flora (include protection status/category) i.e Shorea teysmanniana Dyer (based on government regulation no.7 year 1999 and IUCN / endangered), Koompassia malaccensis Maing (based on government regulation no.7 year 1999 and IUCN / endangered), Alstonia scholaris R.Br (based on IUCN / least concern). Whereas protected fauna was available too (include pro-tecttion status/category) i.e Hylobates agillis (based on IUCN / endangered, CITES appendix I and govern-ment regulation no. 7 year 1999), Macaca fascicularis (based on IUCN / least concern and CITES appendix II), Macaca nemestrina (based on IUCN / vulnarable and CITES appendix II), Rusa unicolor (based on IUCN / vulnarable and govermment regulation no. 7 year 1999), Trachypithecus auratus (based on IUCN / vulnarable and CITES appendix II), Panthera tigris sumatrae (based on IUCN / critically engdengered, CITES appendix I and govermment regulation no.7 year 1999), Paradoxurus hermaproditus (based on CITES appendix III), Alcedo meninting (IUCN / least concern and government regulation no.7 year 1999), Loriculus galgulus (IUCN / least concern and goverment regulation no.7 year 1999), Anthracoceros albiros-tris (CITES appendix II and govermment regulation no.7 year 1999), Chloropsis cyanopogon (IUCN / near threatned), Megalaima rafflesii (IUCN / near threatned), Antharacoceros albirostris (IUCN / least concern, CITES appendix II and govermment regulation no.7 year 1999), Rhinoplax vigil (IUCN / near threatned, CITES appendix I and govermment regulation no.7 year 1999), Ichthyophaga ichtyaetus (IUCN / least con-cern and govermment regulation no.7 year 1999), Egretta garzeta (IUCN / least concern and government regulation no.7 year 1999), Meiglyptes tuki (IUCN / near threatned), Pycnonotus cyaniventris (IUCN / near threatned), Argusianus argus (IUCN / near threatned, CITES appendix II and govermment regulation no.7 year 1999), Rhipidura javanica (IUCN / least concern and govermment regulation no.7 year 1999), Anthrep-tes malaccensis (IUCN / least concern and government regulation no.7 year 1999), Crododylus porosus (IUCN / least concern, CITES appendix II and government regulation no.7 year 1999).
PT RMM has HCV management plan (Monitoring and Management Plan) which decribes the activities planned for each identified HCV such as training and communication to employee, installation of boundary stone and sign board for HCV areas, security patrol for HCV areas, monitoring of protected fauna regularly, monitoring of the ecosystem of river and conservation areas. It has been implemented for all plans. HCV condition of the area is still good, especially in riparian areas that are still covered by natural vegetation, and fertilizer and chemist treatment does not applied.
To prevent inappropriate hunting and collecting activities within their area (block of conservation VIII), the company established a mechanism for illegal fishing and hunting where company also made sign boards
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and has periodic patrolling programmes by security.
The organization has produced posters and signs warning or signboard of the presence of protected species in conservation areas of block E22 – afdeling 5 and block G4 – afdeling 7 and has carried out socialization to employee, including posters distributed to the community Besides that, there are another poster as like prohibited washing and shower in rivers, prohibited of using poison or electricity in fishing, prohibited of spraying/chemist and fertilizing use of anorganic fertilizer in riparian or water source, prohibited of hunting of protected fauna, prohibited of harvesting trees in conservation areas and signboard of HCV areas.
PT RMM has appointed a dedicated HCV team to monitoring of HCV areas it and to monitor plan and activi-ties has done (stated on job letter no. 07 to 09/ST/GM-RMM/II/2014 dated on February 28, 2014) consist of supervisor (document control & GM secretary) and staff. They responsible about monitoring of HCV areas in estate & mill. All team members were trained on management and monitoring of all HCVs, and the training was conducted by YASBI consultant in PT RMM dated on 06 to 13 April 2013.
Monitoring on the species is done, but monitoring on HCV area is not carried out. Monitoring species is con-ducted every day in every section, but without report, there is only a list of animals that are found but also less comprehensive. The absent of field inspection of HCV area raised as Non-Comformity ( NCR 2015-08 of 09 )
CR 5.3 There is a registry/list of waste products produced, in the document of “Daftar Sumber Limbah, Polusi serta Gas Karbon (GHG)”; This document contain Waste Name and Type, Source of Waste, and Manage System.
There is an inventory of chemicals and their containers that are used and kept on site. The data can found at document of Haardous Waste Balance. Chemical and its container that temporary keep as folow: used tin can of thinner, used bag/sack of chemical, used tin can of matador used , jerrycan of Prima Up, Used bottle of garlon, used bucket of grease, and etc.
The chemicals and their containers stored and disposed off is it in accordance to best practices (as pre-scribed by manufacturers’ labels, local requirement, and national best practice). The used container are keep in the licenced storage (the company has a licenced storage room for Temporary Storage of Hazardous Waste, based on Decree of Regency of Mandailing Natal No. 658.31 / 330 / K / 2012, dated April 12, 2012; Valid until April 12, 2015; And also there is Letter of Explanation No. 660 / 685 / BLHKP-MN/2015 from Environmental Agency, (BLH, Kebersihan dan Pertamanan/BLHKP) Goverment of Mandailing Natal Regency, dated August 20, 2015; concerning of explanation that the licenced is under process of extention.
The waste then pick up by third party (CV Amindy Barokah) who have licence to transport and process the hazardous waste. CV Amindy Barokah has been licenced to:
1. Collect Hazardous waste (Decree of State Ministry of Environmental, No. 33 Year 2011, dated February 21, 2011 and valid until 5 (five) years since issued)
2. Collect hazardous waste of Province Scale (Decree of North Sumatera Governor, No. 188.44/452/KPTS/2014, Dated June 19, 2014, and valid until 5 (five) years since issued.
3. Transport hazardous waste, No. B-9802 / Dep.IV / LH / PDAL / 09 / 2014, dated September 03, 2014; and valid until 5 (five) years since issued.
Collection and disposal records of chemicals and their containers maintained, they are found at records of Hazardous Waste Balance and Hazardous Waste Manifest. Example records of related to hazardous waste:
- Official report of handover of hazardous waste No. 02/BAST/LB3/RMM/VI/2015, dated June 17, 2015; Handover of hazadous waste from the company to CV Amindy Barokah, they are: used oil and drum 160 liter; Isoprofil Alcohol + Jerrycan 30 liter; used filter 115 kg; contaminated container (jerrycan aqushield 38 pcs, empty drum ex grease 5 drum, used gloves 5 kg)
- Hazardous Waste Balancet Year of 2015 at TPS LB3: dated July 06, 2015
There is evidence that waste has not been disposed off using open fire, the company has landfill to dispose the domestic waste.
CR 5.4
Sources of renewable energy used for mill operations are fibre and shell. The company regularly monitors
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and maintains calculations for how much energy/ton CPO or energy per ton palm oil product is produced from fibre and shell consumption since year 2013. Since January to December 2014 the quantity of shell produced is 6,873.37 tonnes, and quantity of fiber used is 26,711.58 tonnes. In 2015 until July, the quantity of shell used is 4,474.05 tonnes, and quantity of fiber used is 17,387.26 tonnes.
The Calories produced from shells is 3,880 kcal / kg shell, while for the fiber has 2,488 kcal / kg fiber. Capacity of POM PT RMM is 45 ton / hour, then produced shell fuel 2,700 kg / h (6%) and fiber 5,400 kg / h (12%). The number of calories produced by shells and fiber is 23,692,200 kcal / h. The amount of steam produced from the shell and fiber are 26,715 kg of steam / hour. The steam needed for a steam turbine power plant is 25 kg steam / KW, it will produce electricity energy 724 KW. If per tonne of FFB need 550 kg of steam, POM with capacity of 45 tons / hour need 24,750 kg of steam / hour. For processing per tonne of FFB need 19 KW, the total power requirement for the plant with a capacity of 45 tonnes FFB / hour is 855 Kw. This number can be substituted from the shell and fiber are produced.
The energy available from the shell and fiber is enough to meet the energy required by the plant and does not require generators except for the beginning and end of the process, each for 1 hour.
The company uses fossil fuel diesel oil for limited activities such as start up of boiler and transportation purposes, and operation of generator as an electricity source.For the energy use and use of the renewable energy, the company has recorded their energey use from the fossil fuel and the renewable energy, evidenced by record use of steam, fossil fuel and water. Accordance to the record in 2014 from January until December fossil fuel used for whell loader (3 units), genset (2 units), transportation/car, operational in palm oil plantation, dump truck 1 unit and excavator 1 unit is 136,861 liters, with total FFB processing is 222,596,50 tonnes. On average the fossil fuel used is 0.61 liter per tonne FFB, and water used is 1.30 m3 per tonne FFB. Accordance to policy of Quality objective, Environmental, Health and Safety 2014 state that water used is 1.4 m3 per tonne FFB. So that, the water used for the production is under that the company policy. For the renewable energy, the company used the fiber and shell for subtitution their fossil fuel. Compliance status: Full Compliance
CR 5.5
The company have statement on zero burning. Zero burning policy stated in procedure of land clearing without fire Document no. SOP.Dir.TAN-02 dated July 11, 2011. Within the SOP states that land clearing is done mechanically without burning, within budget cost activities include the manufacture of block bounda-ries, building roads and bridges, uprooted, install stacking lanes, land cleaning plants use mechanical equipment etc. that show the activities carried out without burning. Zero burning policy implemented by provide warning sign in whole company area including in plantation to warn people not to use fire in land area and also avoid to burn domestic waste as well.
The last land clearing last conducted in 2005 covering an area of 621 ha for crops in 2006 in section IV (120 ha), V (129 ha), VII (226 ha), VIII (146 ha), performed without fire, with documentary evidence is some pho-tographs.
Company has procedure for handling emergency situation as Procedure of Emergency Response in Estate and Mill (ID Document : SOP.Dir.TGD-01) Edition: 2 dated September 2013, this procedure contain fire prevention and treatment efforts by provide fire extinguisher in easily accessible location, instruction to use PPE, to understand evacuation, rescue route and emergency situation reporting procedure. Record of emergency drill available which is held in 2014 covering estate and mill. This drill to try competence in using Fire extinguisher, hydrant, water jet, hose and others equipments.
CR 5.6
Assessment of all polluting activities has been conducted including gaseous emissions, particulate/soot emissions and effluent. Air quality tested regularly in every six month, and the latest result of all the parame-ter are still under the limit as stipulated in Government Regulation No 41 Year 1999. Level of NO2 : 61 µg/Nm3, SO2: 139 µg/Nm3, CO : 5µg/Nm3, , NH3 : 0.68 µg/Nm3H2S : 0.0043 and particulate as 62 µg/Nm3
Sources of GHG emissions were identified and documented in the Procedure of GHG measurement and mitigation effort (SOP-Dir.GRK SOP-01 dated 2 September 2013 rev 00) and in the document "Identification of Environmental Aspects and Impacts”. Emission sources identified are :
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a. Land use change emissions, calculated based on the historical condition of the land at the beginning of the opening of the estate (land use trajectory) will be carried out during the year in accordance with the opening area/land clearing or planting year
b. Emissions from peat soil
c. Emissions from fertilizer are used
d. Emissions from the use of fossil fuel from transportation activities, the use of generators for factories, residential and office.
e. Emissions from POME
The company has a document “Report of GHG Emission based on RSPO GHG Calculator year version 2.1.1 2015 “ using the data in 2012, 2013 and 2014. Report GHG calculation uses standardized calculations by the RSPO standard, where the standard is already taking into account the sources of emissions from palm oil mills, land acquisition, the process of fertilization, the use of fossil fuels, greenhouse gas absorption by plant oil palm, conservation land (HCV area) and emissions from peatlands. However GHG uptake of HCV areas can not be calculated because there is no technical data regarding GHG absorption of any type of existing vegetation in HCV area.
The company has made the calculation of GHG emissions from the palm oil plantation and palm oil mill. Emissions from palm oil plantation consist of emission from land clearing/conversion activities, plant uptake, fertilization, N2O, the use of fossil fuels, peat oxidation, , and conservation area, , . Source of emission is calculated either from the company plantations itself as well as third-party plantations. Emissions of POM calculated from POME generated, the use of fossil fuels, emissions credits from electricity, and emission credits from shell. Total emission from field activity is 214,349.07 tCO2e and mill is 9690.84 tCO2e. Land clearing/conversion activity contributes the larger emission with total of 181,360.96 tCO2e.
The company currently has GHG emissions reduction programme. Efforts to reduce pollution and emissions accommodated in ISO 14001 Environmental Management System program. The company has identified reducing emissions from conservation areas (wide or HCV area, vegetation type, age, ability to absorb carbon), the process of photosynthesis of plantation based on carbon stock per age of the plant, the use of renewable fuel (shell = 0.055 ton / ton FFB production and fiber.
The treatment methodology for POME is sedimentation cycle method using 10 ponds consisting of a Cooling pond 1, acidification pond 1 and 2, primary anaerobic pond 1 and 2, secondary anaerobic pond 1 and 2, facultative pond 1 and 2 and an aerobic pond before drained for river as permit from regent of Mandailing Natal No. 658.31/284/K/2014 dated April 7, 2014.
The company has permit to implementation assessment of waste water utilization for land application to palm oil plantation based on decree of regent Bupati Mandailing Natal No. 658.31/285/K/2014 dated April 7, 2014. Activities of drained carried out since the beginning of April 2004. Land aplicatioan area consist of 357 ha in Block B1-B7, B11-B12, A1-A4) and the wastewater flow data are 1,806,000 litre in Block B6,7 ina April 2014 and 947,250 litre in May 2014 for the area Block B6,7,11 and 12. Monitoring of effluent BOD and COD levels is conducted monthly and reported in the Environment Management and Monitoring to the Environ-mental Agency in every six month. Information from monitoring report since January to July 2015 covering BOD, COD, Fat and grease analysis are still below the standard as stated on land application permit No. . 658.31/285/K/2014 dated April 7, 2014 from Bupati Mandailing Natal District.
Observation has been made for continuing improvement on GHG reduction mitigation. Mitigation plan should be made based on clear significance analysis on every emission source including peat land as stated in pro-cedure No SOP Dir-GRK-01 regarding to the GHG calculation and GHG reduction mitigation. Mitigation plan also should contain reduction target and timeline.
Compliance status : Non Compliance
NCR 2015-08 of 09 (Minor Non-Conformity) There is no evidence or reports that indicate that the implementation of the inspections carried out at HCV area.
Principle 6: Responsible consideration of employees and of individuals and communities affected by growers and mills
CR 6.1: There is a report of Social and Environmental Impact Assessment of PT RMM 2013, conduct by Yayasan Kelapa Sawit Berkelanjutan Indonesia. Assessment was conducted on surroundings villages such as Si-karakara, Sikarakara II, Sikarakara III, Sikarakara IV, Sundutan Tigo, Bintuas, Taluk, Rukun Jaya, Suka Ma-ju, Tunas Karya villages at Natal Districts, Mandailing Natal Regency. The identifed impact were as follow :
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 was: decreasing of land ownership at coastal area.
2. Social cultural sector: positive: impact was occuring of assimilation in coastal villages and transmigration villages. It was changes from primary setor into secondary sector and tertiery. Occupation of time was more productive. Negative impact: people become more consumptive. High dependent on external production food.
3. Environmental. Positive impact: not yet experienced by people. Negative: 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 surrounding villages accepted by the company and working accident
- Low of educational level
- Minimum medical resources and health care infrastructure in the villages.
There was community participatory evidence i.e. list attendance of SIA process in surrounding villages. Focus group disscussion held in Sikara-kara, Buburan, Taluk and Sikara-kara III on April 9, 2013 and in Bintuas, Sundutan Tigo, Simpang Bambu, Bronjong, Sikara-kara II, Sikara-kara IV, Sukamaju, Rukun Jaya village and KUD Sumber Jaya on April 13, 2013. Results from focus group discussions and questionnaires were sent to 110 respondents included in the assessment report and used in preparing the social manage-ment recommendations.
There were management and monitoring program of social impact based on SIA for 2015. The program for example was :
1. Improvement of nutrition quality for employee, consist of improvement of nutrition quality at crech, new clinic building development, medical check up for employee handling high risk work such as spraying and manuring in January-December 2015
2. Improvement communication quality with stakeholder: donation for village attention board.
3. Community health counseling,.
4. Community economic empowerment: training of oil palm plantation best practice.
The responsible for implementing social management and monitoring plan, namely personnel and general affairs division.
There are no change in company’s document related to SIA report. And also there was environmental impact management report in UKL-UPL for 2015. SIA report consist of identified social impact of scheme smallholder which is the surrounding villages ask the company to prepare smallholder area for them as already done for Sikarakara III village community.
The Company manages smallholder area of 600 ha (300 families) who are members of cooperatives Sumber Usaha and SIA preparation involves KUD Sumber Usaha, located in the village of Sikara-kara IV.
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CR 6.2 The company have and maintain a list of local communities and other affected or interested parties in document number RMM/ADM/MR/20 rev 1 dated Agust 25, 2015. The parties affected are local communi-ties, suppliers, contractors, labour union. The company have SOP Internal and External Communication No. SOP.Dir.MR-06 rev 02 dated 22-08-2015.
There was procedure and record of consultation & communication with community which is SOP no. SOP. Dir.LEG-03 valid since 1 April 2014. This SOP also states that community relation officer as a person in charge to make communication and consultation with the community.
Employees and the community who submit suggestions / complaints will be protected by the company's management and can remain anonymous in order to avoid the reporting intimidated, suppression or layoffs.
As for the land dispute contained in the procedur land Dispute Settlement and compensation for destroyed crops. Settlement of land disputes do if claimants submit evidence of land ownership, then will be measured and the company hold a meeting by presenting the parties to the dispute and sub district head, village heads, community leaders. Parties claiming to be present and directly adjacent landowners or people who can explain the origin of land, then tested the material in the meeting. Decisions are made on stamp duty and documented / video, if there is no decision in the consultation will be taken legal action/litigation.
The company is appointed estate and mill manager to be responsible for communication and consultation with the affected parties. The position has been made official with clear and proper job description, and the affected parties been made aware and have access to the person in charge by letter or drop in suggestion box.
Records of all communication, including confirmation of receipt or endorsement, recording in log book.
CR 6.3 There was system for grievance handling in internal and external communication SOP no. : SOP.DIR.MR-06 valid since 1 April 2014. By this SOP it is stated that letter or memorandum is a media for communication with internal and external parties. This SOP is covers electronic letter also. Beside this direct letter, communication also could be made by letter sent fo suggestion box. Subject to this communication are as follow :
- Information regarding to quality managemetn and company environment.
- Grievance, objection, complaints and improvement suggestion on companys policy.
- Request for company’s publicly available data.
Flow step for this SOP communication is described bellow :
1. Once in a week the suggestion box will be open by HR Department or General Department.
2. Suggestion, complaint or grievance letters, if any, will distribute to estate or mill manager for action taken needed.
3. Evaluation and consideration on the incoming letter will be follow and responsed by manager by approval from manager or director.
4. All of incoming letters should be recorded by HR of General Department in the logbook.
There was record of employee’s complaint regarding to housing and infrastructure condition and was re-sponded by management. Base on the record of corrective action that company has repaired for some damaged roof or switched into new roof.
Regarding to land compensation and other, including identification process for parties entitled for compensation there was SOP.Dir.LEG-03, used to identification and calculate teh fair compensation for loose of legal and customary right on the land by involving of community representative and related institution, and publicly available. This SOP is valid since 1 April 2014
Public relation section is responsible to receive complaints and grievances. They receive, identification of requests or complaints from external parties and communicate to the relevant manager. Also carry out communication and consultation with the relevant sections with external parties.
Management representatives is responsible for ensuring the information transmitted in accordance with the environmental rules and followed up. Socialization to the workers throuh morning meeting.
The company provides a suggestion box as the means of receipt of complaints, disputes of employees and external parties. Suggestion boxes placed at the department office, estet offices and mill office. Assistant department / personnel of general affair open suggestion box weekly to be forwarded to the estate manager
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/ mill manager. Then followed by the Manager with the approval of the General Manager or the Board of Di-rectors. All suggestions are recorded in the logbook. The company also provide mechanism or procedure for workers to report a grievance against a supervisor. In SOP Internal and External Communications SOP.DIR.MR-06 rev 02 dated August 22, 2016 stated that if there is a suggestion, complaint or dispute against direct supervisor, the complainant may submit the report directly through the directors with a copy to the MR. Complaints related to infrastructure/housing was reported verbally by the occupants, and requested im-provements recorded by an assistant department and followed up by the engineering section. Approval of repair by the approval of the technical assistant manager of the garden. So far no cases of disputes. Com-plaints of registered external PR department (for gardens and PKS), while for central office personnel and accepted by the public), the information will be forwarded to the relevant sections, effluent management. Related section will conduct an investigation and mitigation-related information and, if necessary inspection and monitoring involves a 3rd party. If requested by an external party, then the PR submit a written re-sponse, and recorded in the minutes of external communications.
There are proposals submitted in 2015, for examples Committee Chairman HUT RI Village Taluk dated 07-08-2015 on the application for funding, followed by the approval and issuance of vouchers expenditure of Rp 300.000, there is a receipt from the recipient.
CR 6.4 There is SOP.Dir.LEG-03 rev 00, regarding to land compensation and other, including identification process for parties entitled for compensation, used to identification and calculate fair compensation for loose of legal and customary right on the land by involving of community representative and related institution, and publicly available. This SOP is valid since 1 April 2014.
Compensation granted if there is a community of cultivated land in the location permit. Company socializing with the people who live around the prospective area and held meetings with owners / tenants. Acquisition of land produces output base map of land by the owner of the land of origin was measured using GPS, veri-fication and administrative requirements for land acquisition was followed by the approval of the payment. Payments are made jointly to the owners of land in one block / area and made the Minutes of Payment of Compensation.
There is no record for land compensation from the previous company’s management since there were no land acquirred from surrounding company. The company management said that all of this HGU area was forest concession company, previously.
Based on interview to surrounding community there is no land acquisition anymore from them by the company.
CR 6.5 There was list of employees salary consist of salary for January 2015 and May 2015 that shows that the salary was comply to minimum salary based on Decision Letter of Governor of Sumatra Utara Province no. No. 188.44/46/KPTS/2015 on January 21, 2015 which is Rp 1.865.000 per month. This condition as also comply to Letter of Director of PT RMM No. 02/SK/DIR-RMM/II/201 on February 9, 2015 pertaining to employee salary increase.
The types of employment arrangements in the company are daily labour, daily fixed labor and monthly labour and staff. The company have documentation of pay and conditions for each employee. Daily labour paid on a daily basis, 7 work hours with salary Rp 74.600 per day. Fiked daily labour paid Rp 93.400 + rice 0,5 kg + 0,3 kg (for wife) and 0,25 kg (for child until 2 children). Monthly labour paid Rp 93.400 + rice 0,5 kg + 0,3 kg (for wife) and 0,25 kg (for child until 2 children). All employees follow BPJS employment and health programs
There is a document of Working Agreement Commitment between PT RMM and Worker Union organisation of PT RMM 2014. This agreement already registered and got approve on 20 May 2014 by Manpower and Transmigration local Officer Sumatera Utara province by Decision Letter no. 06/DFT/PKB/6/SU/V/2014, and valid for 12 May 2014-11 May 2016. The pay received by the employee consistent with the terms of the contract and the law.
PT RMM (Estate and mill) provided adequate housing, electricity, water supplies, medical services and education (from junior high school until senior high school). There are housing and suppporting facilities in every estate of PT RMM. For example was Sikarakara Estate equipped with worship house and mosquem
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clinic, elementary school, and clean water pool.
Regarding to building contractors that between the company with contractor has signed agreement where one the them article is the contractor must complies to applicable regulation for workforce such as provide of PPE, work accident assurance.
The company have efforts to monitor and improve workers’ access to adequate, sufficient and affordable food. There is Kedai Ransum Anak in each Afdeling and Kedai Ransum Induk in Afdeling II. The company pro-
vides basic needs (Sembako) for all employees at a subsidized price. In addition there are Cooperative Rimba
Mujur Sentosa which sells a gallon of water/mineral water.
CR 6.6. Company’s policy regarding to worker union is avaliable in employee Work Agreement between PT RMM and worker union of PT RMM on Chapter I article 4, 5, 6, and 7. This agreement state that company recognizes worker freedom to establish association.
To implement the policy, PT RMMhas worker union which namely “Worker Union of PT RMM”. There is regarding to regular meeting between this worker union and management of PT RMM example dated on June 02, 2014 with meeting agenda is welfare workers who attended the meeting were representatives of workers, workers union and management.
The company published a statement in local languages recognising the rights of employees to freedom of association, contained in Circular letter No. 01 / SE / DIR-RMM / V / 2014 dated May 7, 2014 on the Protec-tion of All Human Rights policies and Prohibition. At point 3, the company provides opportunities and facili-tates the workers / employees to associate.
Article 5 Recognition of Serikat Pekerja Karyawan Perkebunan (SPKP). There is a Plantation Workers Un-ion Employees PT RMM, registered at the Department of Social and Labor Municipality of Medan with a record No. 614 / SP-OP / DSTKM / 2009 dated 30-12-2009.
There are documented minutes of meetings between the company and workers union representatives, on August 22, 2015 discussed the instruction that bureau representative afdeling 1 to 8 and plasma socializing SPKP regularly to members, lodged a complaint to the head to be immediately addressed and manages the cafetaria as active income of SPKP.
CR 6.7 The minimum working age for workers together with working hours clearly defined in the company’s regulation and in the recruitment procedure, document No. SOP.Dir.PUM-02 rev. 01 on May 01, 2012. General requirement on recruitment is minimum working age is 18 years old..
There is company’s pollicy in circular no. 002/GM-RMM/IV/2014 for worker protection and prohibiton, valid since 11 April 2014. By this circular it was stated as follow :
1. The company only accepts adult worker (18 years minimum age or married).
2. Worker is 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, phsyco and social development.
4. Estate division which accepted this kind of working children as point 3 above shall accompany with requirement as below :
- 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, phsyco 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 is no underage worker found. Both in the mill and the estate. So, there was no worker need to accompany with written permit from the parrents. Based on interview and observation in the filed found that the company comply to regulation regarding to worker’s minimum age.
CR 6.8
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Related to prevention of any form of discrimination there was the company's regulation on equal opportuni-ties for all community members to take advantage for working in the company. This policy was contained in a circular No.01 / SE / DIR-RMM / V / 2014 dated May 7, 2014. In point 9 it was stated that the company ap-plies equal opportunity for all community members to take advantage to become the company's worker without any discrimination on nation, race, gender, and religion.
Evidence of equal treatment in working opportunities for workers could be seen on worker lists which shows that all workers come from different race, nation, gender adn religion. Based on interviews and fielld obser-vation it was found that there was no discrimination to the worker regarding to this opportunity. Interviews with employees of evidence that the policy has been implemented.
The company explicitly states the indiscriminatory policy during the recruitment, selection, hiring and promo-tion process. The basic policy that company respect the equal rights of applicants and does not justify the existence of considerations based on aspects that are not related to work (nepotism, gender, religion, race etc.)
The company's employees recruited and promoted based on skills, capabilities, qualities, and necessary medical fitness for the job. Promotion based on work assessment, examples of work assessment of assis-tant afdeling V, field Agronomy department, dated June 19, 2015, which assessed: process (discipline, mo-rale, teamwork, poles, reliability, control), consist of self-assessment and assessment by supervisor; People management (delegation, coaching and Counseling, motivation, development of subordinates). Signed by its own employees, the supervisor, the appraiser. Assistant afdeling V promoted to head assisstant.
CR 6.9 The company has the policy to prohibit any form of sexual and all other forms of harassment and violence. Contained in the Management Policy Quality and Environment in Producing Sustainable Palm Oil Sustaina-ble, point 10: Protect the reproductive rights of all workers by preventing any form of harassment and vio-lence that can occur especially against women workers, and do not allow minors to do the work in corporate environment. There was the company's policy regarding sexual harrasment to prevention and violence againts women. This policy was contained in circular no. 002 / GM-RMM / IV / 2014 pertaining to worker protection and pro-hibition as follow:
1. Workers are prohibited to conduct sexual harassment and any form of violence against women and her family.
2. Workers are mandatory to use suitable and not sexy cloth
3. Workers are not allowed to stand colse together apart from othe workers during working time in order to Prevent any action sexual harassment.
Regarding reproductive right to protection, in this circular letter or bresteeding states that pregnant women are not allowed to do any job related to chemist and manuring or hazardous materials. This policy Also working agreement contained in article 37 chappter VIII
Related to special treatment, the gender committee has established recently, Consist of head of committee, secretary, and members. Function of this committee was as an official institution for the worker to reporting any case of sexual harassment or violence against women experienced. Based on interviews and field ob-servation, it was found there is no sexual harassement and violence faced by workers and their family. However, there is evidence that this comminttee found already socialized to the worker As evidence of reproductive rights policy implementation, there were no pregnant women or brestfeeding Involved in working related to chemist, manuring or hazardous materials
CR 6.10
There is a mechanism of FFB price calculation which was procedure number SOP.Dir.MKT-01 subject to pricing flowchart mechanism as follow:
1. To analys CPO and kernel biding price at the market which was Consist of Several companies such PT Kharisma Pemasaran Bersama, Astra Group, the Malaysian market effect, State Plantation Di-vision of North Sumatra Province as refference.
2. To analys price of FFB from competitors.
3. To analys last FFB purchase price
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4. To Determine FFB purchase price.
There are suppliers without any contract of FFB supply. In this case, there was a letter from some suppliers statement states that the supplier did not want any binding contract for FFB since they prefer flexibility to sell According to FFB Reviews their best price Among the palm oil mill Reviews their surrounding area. For example was the supplier from the Market III Village and Sikarakara III. There is a statement of one of the Supplier dated 20-07-2014 on the stamp, stating that the person concerned is not under contract with the mill and approved methods of payments made by the mill.
The FFB price shown at the mill gate Consist of today and yesterday price. Duirng this audit it was found to-day's price was Rp. 700 and yesterrday's was Rp.750 / kg. The price was based on the decision of Director office in Medan and also distribute to the potential suppliers by text.
Results of interviews with suppliers indicate that no significant complaints, related only notice the price not to be abrupt. The complaint handled by company made allowances for the demolition of up to 24.00 (if've got a queue of SAPAM the card will use the old price).
CR 6.11
There was report of 2014 CSR activity as follow :
1. Donation for structure and infrastructure of Mesjid Raya mosque at Pasar III Natal village,.
2. Donation for street paving at Sikarakakara village
3. Donation for village information board at Sikarakara village
4. Donation for street paving at Dusun Bronjong village
5. Donation for street paving at Simpang Bambu village
6. Donation for street paving for Sikarakara III dan Tunas Karya villages
There a complete registry of independent smallholders in the supply base, via middle man. The company have efforts been made to improve the farming practices of independent smallholders by socialisation of FFB quality.
CR 6.12 There are no Company’s operations related to trafficked and forced labour. All of plantation workers are In-donesian Local workers. There are no restrictions on workers from leaving the mill or estate or their housing facilities outside working hours.
The process if a worker wants to terminate their employment before their contract expires is by sending resign letter to get approved. The company doesn’t give the penalties if the workers were terminated or fired before their contract expires.
CR 6.13 Company’s commitment in Human rights has documented in Collective Working Agreement (PKB) 2014/2016, such as:
a. The freedom workers to have a worker union, was state in clause 5.
b. Commitment to equal opportunity has documented in clause 14.
c. Clause 10 about the recruitment, state that the workers at least are 18 years old.
This PKB has been socialized to all level workers. Last socialization process was at June 20th 2015, con-ducted in Afdeling I, II, III, IV and V of Aek Kulim Estate. Other subjects that communicate in the socializa-tion process are:
a. Restriction for all workers in consuming alcohol and drugs inside PT BAS Operation Areas.
b. Restriction in conducting violence actions/activities inside PT BAS Operation Areas.
The company distributed circular letter No.01 / SE / DIR-ROM / V / 2014 dated May 7, 2014 on the Protec-tion of Human Rights and Prohibition Policy. Stated in point 1: in carrying out the activities of the company's activities are expected to leaders / staff, employees in all regions / work units (estate and mill and office di-rectors to always uphold human values, respect, mutual respect, with dignity and responsible.
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Complaince status: non compliance
NCR 2015 No. 09 of 09 (major non conformity)
Found evidence that a daily worker do not get a copy of the employment contract made by a company and do not understand the contents of the contract
Principle 7: Responsible development of new plantings
CR 7.1 Company has document of Social and Environmental Impact Assessment which is done by third party in year of 2013 (YASBI team), covering result of analysis of social aspect positive and negatives and environment aspect with participation of affected parties (local communities).
Company has document of Environment Impact Assessment Term of reference for Plantation and Mills PT Rimba Mujur Mahkota dated on July 2008¸also environment impact assessment dated on July 2008 which is approved and passed by Head of Environment Impact Management Agency District Mandailing Natal Number : 660.2/007/BPDL-MN/2007 dated October 15th, 2007, and regent of Mandailing Natal Number : 660/1949/BPDL-MN/2008 dated August 20th, 2008 related tentang Approval of Social Environment Analysis, Environment Management Plan, Environment Monitoring Plan, for Oil Palm Plantation and Mills PT Rimba Mujur Mahkota at sub-district Natal, District Mandailing Natal, Northern Sumatra Province, covers an area 4.956 acres and Mills capacity 45 ton FFB/hour.
According with explaination in criterion 4.8 that all activity plantation in smallholder areas by company so that the company not provide training program for smallholder and based on agreement between company with cooperative village (KUD) Sumber Usaha that there are not obligation from second party (company) for de-veloping smallholder so that records of development program not available.
CR 7.2
The company has conducted analysis of the soil with the evidence is a report of ‘Document land suitability evaluation of oil palm plantations PT Rimba Mujur Mahkota, Januari 2014’. Land suitability evaluation con-ducted by the Reasearch Institute of Horticulture and the Environment (Medan, North Sumatra) with contains a description of the land, soil map unit classification, analysis class of actual and potential land suitability, in-cluding for oil palm agronomy.
The company has soil map scale 1:10,000 for afdeling I until VIII and afdeling Plasma. The maps show that there are six soil map units within the estate area, which are red yellowish podsolic, brown yellowish podsol-ic, red yellow podsolic, alluvial grayish brown, peat soil association with alluvial watery and organosol (peat dept 0,5 – 2 meters). The company has a peatland distribution maps for nucleus and plasma estate with a scale of 1: 10,000. The Company has determined the peg mounting points representing subsidence depth levels of low, moderate to high for all blocks.
The company has already strategy to maintain the estate with the critically condition i.e. estate with slopes above certain limitas. Based on the slope map, 77.05% of area (3,818.40 hectare) has a contour flat (slope 0-8°), 14.66% (726.32 hectares) has a contour ramps (slope 8-15°), 6.45% or 319.77 hectare has choppy (15-25°), 1.78% or 88.16 hectare of hilly slope (25-45°) and 0.07% (3.35 hectare) has mountain slope (>45°). The most important conservation treatment are terracing and planting legumes in slope areas and management of peat soil is highly emphasized by monitoring and measuring water level, should be monitored between 50-75 cm,
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CR 7.3
The company has HCV assessment report with the scope of HCV assessment are all company areas and village cooperative of sumber usaha’s areas (KUD Sumber Usaha). HCV assessment conducted in April 2013, one year after PT RMM accepted as RSPO member, whereas, based on hectare statement of PT RMM that there are planted years in year 2005-2006 amount of 679 ha (23 ha in afdeling 2, 129 ha in afdeling 5 and 181 ha in afdeling 8). All year planted 2005-2006 is inside land use right (HGU) concession and not in the HCV areas nor replace any primary forest , Based on EIA study, previous land cover that opened in 2005 and 2006 is secondary forest and old shrubs, it also shown in Landsat imagery as described in HCV assessment.
CR 7.4
The company has soil map scale 1:10,000 for afdeling I until VIII (nucleus estate) and afdeling Plasma. The maps show that there are six soil map units within the estate area, which are red yellowish podsolic, brown yellowish podsolic, red yellow podsolic, alluvial grayish brown, peat soil association with alluvial watery and organosol (peat dept 0,5 – 2 meters). The company has a peatland distribution maps for nucleus and plasma estate with a scale of 1: 10,000. In year 2005 and 2006 the company planted on total area of 679 ha, with details of planting on peat land ar-ea is 333 ha and in mineral soils covering an area of 346 ha. Planting on peatland done in Afdeling 2 of 23 hectares, in Afdeling 5 of 129 hectares and Afdeling 8 of 181 hectares. The company made the investment plan/planting plan based on soil maps and topographic maps. The Company seeks to protect the peat land with making adequate drainage channels, have patok subsidence, water table gauges and water level on certain blocks. The company has a channel blocking Map scale 1: 20,000 for each section contained peat-land.
CR 7.5 The plantation has a the social and environmental impact assessment document which include analysis of both positive and negative environmental and social impacts, and made with the participation of affected parties, as explained under CR 7.1.
The year planting 2005-2006 areas to be in the Land Use Right (HGU) so the company has not conducted socialization to community, identification and assessment of customary and legal right with the involvement of relevant government agencies and local communities..
CR 7.6 According explaination in criterion 6.4 that Based on interview to surrounding community it was found that there were no land acquisition from them by the company so that year planting 2005-2006 areas no land ac-quisition from them by the company too
CR 7.7 The company obtain ownership of the oil palm plantation from another company is embedded in a planted condition of oil palm and so far the company has no preparation for replanting yet and does not have a doc-ument for it either. The company implements a zero burning policy as stated in their procedure and provide warning sign in whole company area including in plantation to warn people not to use fire in land areas. The company has emergency response procedur and fire extinguisher facilities as explained in the indicator 5.5 above
Compliance status: Full Compliance
Principle 8: Commitment to continuous improvement in key areas of activity
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Criteria assessed: CR8.1 Criteria not assessed: - Findings :
Overall implementation plans are defined based on risk level evaluated for identifying significant aspects. Verified & cross checked implementation of the actions such as waste management control, chemical management control, etc. The estate has an Environmental Monitoring and Management Plan based on the estate’s RKL/RPL documents and produces a report about implementation of RKL/RPL every 6 months. The report was submitted to BLHD of Mandailing Natal. RKL/RPL report for semester 2 year 2014 was ready at time of audit. The improvement plans was established include water quality management program by reducing the impact of fertilizers and pesticides in estate, reduce application of fertilizers and starting fertilizer application activities before rainy season according to recommendations. The company has policy to no use paraquat in pest management control activities.
PT RMM has implemented quality management system ISO 9001 and an environmental management system ISO 14001 and has obtained ISO 9001 and ISO 14001 certificate. Mechanism PLAN-DO-CHECK-ACTION as part of the management system mechanism goes well, the establishment of quality objectives / environment and quality next plan is guided by the company's operational management system set out in the quality manual and procedures and record every activity in every line of activity. Internal audit mechanism conducted periodically to see the consistency of the implementation of management systems. Evaluation is done by conducting management reviews are reviewing the whole process and the way that has been done, and seek improvements are still needed if found any shortcomings in the achievement of quality policy / environmental and quality objectives / corporate environment.
This time is main assessment so that the company has records of follow-up actions taken against RSPO au-dit findings and records of correction and corrective action against QMS, EMS and ISPO internal audit avail-able. Results of internal audit has evaluated and reviewed by top management, Compliance status : Full Compliance
3.1.2. RSPO SCCS
The following is a description of the findings pertaining to the company’s supply chain management system ac-cording to the RSPO SCCS requirements, including status of compliance of the company and their outsourced third parties to RSPO SCCS requirements. Results of audit/assessment as describe on the explaination below:
E.1. Definition
Findings: Sikarakara Palm Oil Mill (Sikarakara POM) is located in North Sumatera – Indonesia with production ca-pacity of 45 tonnes/hours. In year 2014 and 2015 (January to July), the mill processes Fresh Fruit Bunch-es (FFB) from company owned estate (Sikarakara estate), village cooperative of Sumber Usaha (KUD Sumber Usaha) and independent outgrowers. The location of Sikarakara POM is within afdeling II (block B10).
The company has an operating license from the Indonesian State Minister of Investment / Chairman of In-vestment Coordinating Board i.e approval of business permit (izin Usaha) No. 81/1/IU/I/PMDN/INDUSTRI/2010 (issued dated on November 12, 2010) with production capacity of CPO : 30,000 tonnes and PK : 6,200 tonnes.
The operations of Sikarakara POM were assessed against Module E of the RSPO Supply Chain Certifica-tion Systems (SCCS) document (November 2014). The scope of the Supply Chain Certification System as-sessment covers the implementation of the Mass Balance (MB) supply chain model of Sikarakara POM. This is not a multi-site certification. This SCCS model allowed to mixing of certified and uncertified product but shall be control by the Mass Balance record to ensure the quantity of certified product, and only certi-
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fied product could be claim by the organization as certified palm oil product. Organization has identified the volume of certified and uncertified FFB supplied to the mill.
Compliance status : Full Compliance
E.2. Explanation
Findings:
In year 2014, total FFB received same as FFB process is 222,596.50 tonnes, produces CPO and PK amount of 46,933.20 tonnes (OER : 21.08%) and 10,239.44 tonnes (KER : 4.63%). Whereas in year 2015 (until July) are total FFB received is 144,893.95 tonnes same as FFB process, and produces CPO and PK amount of 31,601.35 tonnes (OER : 21.81%) and 6,853.48 tonnes (KER : 4.73%).
Projection of certified FFB production year 2015 from Sikara-kara estate and small holder is 256,494.30 tons so that projection of certified CPO production is 30,592.73 tons (OER : 21.81%) and certified PK pro-duction is 6,634.74 tons (KER : 4.73%).
Information of trade transaction by green palm and eTrace not provided and evidence of registration to eTrace and greenpalm not provided too. It was raised as non-conformity (NCR SCCS No.2015-01 of 03 ). Based on interview that company has been claimed under green plam scheme since November 2014. Compliance status: Non Compliance
NCR SCCS No.2015 - 01 of 03 CPO certified transaction of 1,500 tonnes in January 2015 as noted in the mass balance table have not been listed on the RSPO e-trace.
E.3. Documented procedures
Findings:
The company has a procedure for implementation of SCCS requirements. There are a set of existing pro-cedure consisting of :
• Procedure of FFB receipt (No. SOP.Dir.PKS-11 Rev.03 dated on June 23, 2014). This is proce-dure include create of daily report for FFB receipt, and marking of certified or non-certified in fruit delivery letter.
• Procedure of bidding, sell contract and review of product requirement (No. SOP.Dir.MKT-02 Rev.03 dated on June 23, 2014). This is procedure include information of certified or non-certified product in bidding invitation letter, contract document and delivery order document.
• Procedure of hand over of palm product to customer/buyer (No. SOP.Dir.MKT-03 Rev.02 dated on June 23, 2014). This is procedure include administrative completeness, making certified stamp in production delivery letter, and dispatch report.
• Procedure of over production klaim to the certification body (No SOP.Dir.MKT-07 rev. 03 dated on May 02, 2014
• Procedure of all production process from loading ramp until water treatment (No. SOP.Dir.PKS-01 Rev.0 to SOP.Dir.PKS-10 Rev.0 dated on July 11, 2011)
• Procedure of to create production report in mill (No. SOP.Dir.PKS-39 Rev.0 dated July 11, 2011).
The name of the person having overall responsibility for and authority over the implementation of these re-quirements and compliance with all applicable requirements has been assigned i.e assisten of quality con-trol (stated on job letter from GM PT RMM no. 002/ST/GM-RMM/2014 dated on April 01, 2014) at the audit time.
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Sikarakara POM has a procedure for reception and processing of product/material (include from internal and external suppliers and/or certified or non-certified FFBs). However the Company has not carried out training / awareness / update information to the key persons in implementation of SCCS related to the lat-est standards. Compliance Status : Non Compliance
NCR SCCS No.2015 - 02 of 03
The Company has not carried out training / awareness / update information to the key persons in implemen-tation of SCCS related to the latest standards.
E.4. Purchasing and good in
Findings:
Sikarakara Palm Oil Mill has mechanism to receive FFB both from certified sources and non-certified sources. The document to be verified from certified sources is fruit delivery letter (Surat Pengantar Buah) (FORM/AFD-14) come from company owned estate (Sikarakara estate) and village cooperative of Sumber Usaha (KUD Sumber Usaha). FFB certified status will be stated in form certified stamp on fruit delivery let-ter (Surat Pengantar Buah) and non-certified stamp on fruit delivery letter (Surat Pengantar Buah) for FFB non-certified by weighbridge operator. However the staff at the weighbridge did not understand the marking of certified and uncertified FFB and products, so it raised as non conformity.
The company has a mechanism to inform the CB immediately if there is a projected overproduction i.e SOP.Dir.MKT-07 Rev.0 dated on May 02, 2014. Compliance Status : Non Compliance
NCR SCCS No.2015 - 03 of 03
FFB receipt from RSPO certified source were not stamped as FFB RSPO Certified by weighing section as stated in procedure, for example FFB receipt dated August 26, 2015 from divison 8 and smallholder estate and dated May 30, 2015 from division 4 and smallholder estate.
Palm Kernel RSPO Certified stamp was used for sending receipt to the buyer without the support of PK sales contract,
E.5. Record keeping
Findings:
Sikara kara mill has recorded and balance receipts if RSPO certified and uncertified in to mass balance record and also for palm oil production such as CPO and PK with basis three months and evaluated in eve-ry month.
During assessment, mill has evaluated of volume the CPO and PK certified quantity year 2014 and 2015. The annual balance records including the incoming certified FFB and non-certified FFB, the production pro-cess, the finished goods of certified and non-certified CSPO and CSPK, Sales and end stock. The auditee has sold certified CPO under green palm platform. The company delivery product from positive stock but not implemented sell short.
A total of 9 non-conformances were identified during the certification assessment. These consisted of 2 major and 1 minor non-conformities according to RSPO P & C, as major non-conformity. For the non-conformances, the compa-ny has taken the necessary corrective action to close these non-conformances within 60 days of completion of the assessment, and this was verified by the audit team through checks of documents submitted by the company.
During 1st surveillance assessment, it was found that there was sufficient evidence for closure of all non-conformities. The following is a description of the evidence of action taken to close the non-conformities raised during the previous assessment, as well as auditor’s conclusions on the status of the non-conformities.
Criterion 2.1. (Major indicator 1) Evidence of compliance with relevant legal requirements.
NCR 2014-01 of 09 (Major Non-Conformity) :
Based on interview and evidence in field that the company not prepare PPE for fertilizer team so that the company not compliance with regulation of the ministry of man power and transmigration no. PER.08/MEN/VII/2010 dated on 6 Juli 2010 article 2 paragraph 1 and agreement between labour union with company article 35 paragraph 3.
Verification of Correction and corrective action :
The company has provided evidence of the handover of PPE to chemist/spraying worker in afdeling II dated on April 19, 2014 (Apron, masker, safety shoes) and dated on May 28, 2014 (gloves and glasses); to harvest worker in afdeling I dated on April 23, 2014 (helmet), dated on April 01, 2014 (glasess) and dated on April 25, 2014 (safety shoes); to fertilizing worker in Afdeling III dated on April 14, 2014 (masker, gloves) and dated on June 24, 2014 (safety shoes).
Auditor Conclusions: Closed
Criterion 2.1. (Major indicator 2) Evidence of efforts made to comply with changes in the regulations.
NCR 2014-02 of 09 (Major Non-Conformity) :
The result of overlap between estate map with map of forest areas in the North Sumatera province (stated in HCV report) that there is part of estate areas is forest production limited (Hutan Produksi Terbatas). The company has not effort to comply with decree letter from Ministry of Forestry no.44/Menhut-II/2005 dated on 16 February 2005
Verification of Correction and corrective action :
The company has provided evidence of letter no. 117/300-12.13/VII/2014 dated July 03, 2014 from National Land Agency in Mandailing Natal District that PT RMM areas is land for other uses (Areal Penggunaan Lain) where based on resume of land inspection B (committee B) no. 86/PPT/B/2000 dated on December 18, 2000 (the result of overlay between North Sumatera Provincial spatial plans (RTRWP) map with forest map (TGHK)). With those conditions, land use right certificate on behalf PT RMM has compliance with applicable laws and regulations. Auditor Conclusions: Closed
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Criterion 2.2. (Major indicator 1) Documents showing ownership or lease of the land in accordance with relevant laws.
NCR 2014-03 of 09 (Major Non-Conformity) :
There is RMM areas outside from legal areas (based on cadastral map no. 40/10/2000) example block B22
Verification of Correction and corrective action :
The company has provided revision of land use right map, re-demarcation of boundary stones/pillars in block B22 (no. 4 and 5) and the list of boundary stone include coordinate of each pillar. With evidence above that sample location during audit located within PT RMM concession. Auditor Conclusions: Closed
Criterion 2.2. (Major indicator 2) Evidence that legal boundaries are clearly demarcated and visibly maintained.
NCR 2014-04 of 09 (Major Non-Conformity) :
All boundary stones/pillars was not demarcated in field example in block G01 (boundary with PT Rizkina Man-diri Pratama) and in block B22 (after boundary stone/pillar with coordinate 000 39’ 08.6” N ; 990 05’ 45.5” E).
Verification of Correction and corrective action :
The company has provided revision of land use right map, re-demarcation of boundary stones/pillars, the list of boundary stone include coordinate of each pillar and list of boundary stone include number pillars, coordi-nate, photograph, minute of review of the joint about boundary stone/pilar between PT RMM with PT RMP, note/description (location/block and boundry around estate).
The boundary stone/pillar has installed amount of 45 pcs where two of them are no. 53 in block G01 and no.4-5 in block 22. There are pillars that have not been installed but the company has planning of re-demarcation by regulary. Auditor Conclusions: Closed Criterion 5.2 (Minor indicator 1) Posters and signs warning of the presence of protected species are to be produced, distributed and made visible to all workers and the community including guidelines in handling them
NCR 2014-05 of 09 (Minor Non-Conformity) :
The company has posters/leaflet and sign warning of the presence of protected species in company are to be produced but has not distributed to community and not including guidelines in handling them.
Verification of Correction and corrective action :
It was sight during 1st surveillance audit evidence of socialization to communities about protected species available in estate in form distributing protected species posters. The Information of guidelines to handling protected species in posters are inform to employees/communities that prohibited of hunting and maintain the protected species, employees and communities must inform to estate office/PiC/nearest security post/calling the phone number listed on a posters.
The company also has follow up information has received by the company from employees/communities with to identify the type of fauna was found. Furthermore will be to handling with many mechanism where consist of 1). If was found wild animals (category of dangerous) so that the company will be to inform to related agen-cy or conservation of natural resources agency (Badan Konservasi Sumber Daya Alam); 2). If was found fau-nas is harmless but can damage the oil palm tree so that the company will be moved to HCV areas in PT RMM.
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Auditor Conclusions : closed Criterion 5.3. (Major indicator 2) Estate and mills waste management and disposal are implemented to avoid or reduce pollution.
NCR 2014-06 of 09 (Major Non-Conformity) :
There are dispose of domestic waste with burn mechanism/method in emplasment/housing (mill, division VII and division IV). Verification of Correction and corrective action
The company has carried out re-socialization of organic and anorganic waste management with true dated on June 23, 2014 in afdeling IV and afdeling VII and June 1, 2014 in mill. In the socialization has explained pro-cedure of waste management accordance with work instruction of waste management and house keeping (no. IK-MR-RMM-01 Rev.00 dated on April 01, 2014). The evidence of re-socialization has done are attendant list and minute of statement. While the location formely used as domestic waste burning then corrective action has been taken in the form of putting out the fire, make poster/leaflet and circular letter to prohibit burn of waste in emplasment/housing areas and separation between the organic and inorganic waste. Auditor Conclusions: Closed
Criterion 6.1 (Minor indicator 1) Regular monitoring and management of social impact with the partici-pation of local communities
NCR 2014-07 of 09 (Minor non-conformity) There were no evidence regarding to community participation in process of management and monitoring plan based on SIA report. Verification of Correction and corrective action: The company has conducted disscusion with affected community in order to have participatory plan of moni-toring and management of social impact on December 9, 2014. Auditor Conclusions : closed
Criterion 6.5 (Minor indicator 1) Growers and millers provide adequate housing, water supplies, medi-cal, education and other facilities for employees where such facilities are not available or accessible
NCR 2014-08 of 09 (Minor non-conformity) Clean water facility was insufficient. For example are 1). Water pump got damaged for several days at divi-sion IV and 2). No clean water facility available near to the housing at division VII. Verification of Correction and corrective action: The company has repaired the damage pump at division IV and constructed water pump and clean water pip-ing to housing in division VII.
Auditor Conclusions : closed
Criterion 6.9 (Minor indicator 3) Specific grievance mechanism is available
NCR 2014-09 of 09 (Minor non-conformity) There was no evidence found that gender committee and specific grievance already socialized to the worker.
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Verification of Correction and corrective action: The company has already conducted socialization process to all workers and their families at estate’s and mill’s housing regarding gender commitee and grievance on December 10, 2014.
.
Auditor Conclusions : closed
3.2.2. RSPO SCCS
A summary of all identified non-conformances during the certification assessment, corrective actions taken and auditor conclusions is as below:
NCR SCCS No. 2014-01 of 02
There are procedures which have not been updated to be in accordance with related SCCS requirement i.e :
• Procedure of FFB receipt (No. SOP.Dir.PKS-11 Rev.02 dated on April 01, 2014) does not explain about instruction to create daily report of certified and non-certified CPO & PK production, and to create produc-tion CPO & PK report on three-monthly basis.
• Procedure of bidding, sell contract and review of product requirement (No. SOP.Dir.MKT-02 Rev.02 dated on May 02, 2014) does not explain about information of model supply chain in bidding invitation letter, con-tract document and delivery order document.
• Procedure of hand over of palm product to customer/buyer (No. SOP.Dir.MKT-03 Rev.01 dated on May 02, 2014) does not explain about information of model supply chain in production delivery letter.
Verification of Correction and corrective action
The company has provided :
• revision of certified and non-certified FFB receipt procedure (SOP.Dir.PKS-11 rev.03 dated June 23, 2014) where instruction to create daily report of certified and non-certified CPO & PK production has ex-plain in page 2 of 11 (job and responsibility of production supervisor) and instruction to create production CPO & PK report on three-monthly basis has explain too in page 2 of 11 (job and responsibility of produc-tion supervisor). Beside that, the company has provided daily report of certified and non-certified CPO & PK production (FORM/PKS.ADM-12 & FORM/PKS.ADM-14) and has provided production CPO & PK re-port on three-monthly basis (FORM/PKS.ADM-16 and FORM/PKS.ADM-17).
• revision of bidding, sell contract and review of product requirement procedure (SOP.Dir.MKT-02 Rev.03 dated on June 23, 2014) page 02 – 03 of 06 where supply chain model has informed to customer or can-didate of customer in bidding document, trade document (contract and delivery order) and production de-livery letter document.
• Revision of hand over of palm product to customer/buyer procedure (SOP.Dir.MKT-03 Rev.02 dated on June 23, 2014) page 4 of 8 that there is supply chain model information in delivery letter document in the form stamp.
Auditor Conclusions: Closed
NCR SCCS No. 2014 -02 of 02 The organization has not shown CPO & PK mass balance form on three-monthly basis and certified and non-certified PK production daily report form.
Verification of Correction and corrective action
The company has provided form of certified or non-certified CPO & CPK mass balance on three monthly ba-sis and form of non certified PK production daily report.
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Auditor Conclusions: Closed
3.3. Identified Non-conformances, Corrective Actions Taken and Auditors Conclusions
3.3.1. RSPO P and C
A total of 9 non conformances were identified during the 1st surveillance assessment. These consisted of 5 major and 4 minor non-conformities according to RSPO P & C. For the major non-conformances, the company has taken the necessary corrective action to close these nonconformances within 60 days of completion of the assessment, and this was verified by the audit team through checks of documents submitted by the company. A summary of all identified non-conformances, corrective actions taken and auditor conclusions is as below :
Criterion 1.1 (Major indicator 1): Records of requests for information and responses shall be maintained.
NCR 2015-01 of 09 (Major Non-Conformity) No evidence that organization recorded information request from the stakeholder as well as its response.
Correction : Re-record all the information request from the external parties completed with the response
Corrective Action : To implement procedure Internal and External Communication No. SOP.Dir.MR-06 dated 22 August 2015 with record all the information request on logbook code form/MR-19 consist of logbook internal information request and logbook for external, Log book code FORM/MR-20 for information/ grievance from the external party.
Auditor Conclusions: Closed
Date of closure : September 15th, 2015
Verification audit : The organization has provided evidence of the recording of all the request letter from some external parties such as university, school, villagers, and the local institution. These requests then keep in the logbook both in Form/MR-19 and Form/MR-20, and completed with the response and time to complete the request.
Criterion 2.1. (Major indicator 1) Evidence of compliance with relevant legal requirements.
NCR 2015-02 of 09 (Major Non-Conformity) :
• Requirement of environmental permit (Surat Kesanggupan Pengelolaan dan Pemantauan Lingkungan Hidup) for plasma farmers that managed area of 600 ha. This requirement is mandatory as regulated on Environmental Ministry Decree No. 13 Year 2010 for activities with business scale under 3000 ha and operated individually (non-corporation category)
• Chemical material that used in field operational is still not registered and recommended by the local manpower agency as regulated on Minister of Manpower and Transmigration Decree No. 187 year 1999
• Some of boiler and sterilizer operators have no SIO license as required on Minister of Manpower Regu-lation No. 01 Year 1988 regarding to Qualification and Requirements for steam engines operator.
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Correction :
• To complete Surat Pernyataan Kesanggupan Pengelolaan dan Pemantauan Lingkungan Hidup/SPPL (small scale environmental management and monitoring) for smallholder farmers in plasma estate.
• Submit a request letter to the local Manpower Agency of Mandailing Natal district to issuing a recom-mendation for chemical material that used in field.
• To provide training for the steam engine operators and the training programmed held in September 7th, 2015.
Corrective Action :
• Environmental management and monitoring as stated in SPPL.
• Implementing and apply only the recommended pesticides from Manpower Agency.
• At the current condition, only licensed operators will operate the steam engines.
Auditor Conclusions: Closed
Date of closure : September 15th, 2015
Verification audit :
The company has provided evidence of the SPPL from Environmental Agency for every farmers who involved in Plasma estate on September 1st, 2015. For example: villager number 1 and 2 in Sikara-kara IV village already have the SPPL that signed by the local environmental agency of Mandailing Natal district.
The management of PT RMM has sent request letter No. 238/SM-RMM/VIIU/2015 on August 26th, 2015 to the Manpower Agency of Mandailing Natal district for pesticides recommendation completed with list of used pesti-cide. Request has been received by the Manpower Agency on August 27th, 2015 by Mr Parluhutan ST a staff in that agency.
The management of PT RMM has sent request letter No. 01/MM-RMM/IX/2015 on September 1st, 2015 for steam engines operator training purpose. This request has already approved by Main Director of PT RMM on September 1st, 2015. Operators that will be send in training are 3 workers Training will be organized an author-ized OHS consultant namely PT. Safindo Raya and the training will be held on 3 -8 September 2015.
Criterion 2.2 (Minor indicator 1): Legal boundaries shall be clearly demarcated and visibly maintained.
NCR 2015-03 of 09 (Minor Non-Conformity) :
SOP for demarcation moni’oring is not available,
Correction: Procedur on boundary pillars monitoring will be made
The company has provided a new SOP for demarcation / boundary pillar No, SOP Dir-NKT-07 dated on Sep-tember 1st, 2015. Regarding on Monitoring on Demarcation Pillars. The SOP comes with forms for monitoring, plan and realization.
Corrective Action: The company implement boundary pillars monitoring with refers to the SOP.
Auditor Conclusions: Evidence of immediate action ta ken was accepted. Effectiveness of implementa-tion to verified at next surveillance audit
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Criterion 3.1 (Major indicator 1): A business or management plan (minimum three years) shall be documented that includes, where appropriate, a business case for scheme smallholders.
NCR 2015-04 of 09 (Major Non-Conformity) :
Business plan has not sufficient information/ data including area statement, non-planted area for HCV, cost for CPO production and benefit prediction (income statement)
Correction : Correction or revision of Business Plan completed with area statement, managed HCV area, Cost CPO/ton and profit estimation
Corrective Action : To develop a completed business plan with all the financial, cost and benefit profit and also area statement and year of the plant.
Auditor Conclusions: Closed
Date of Closure : September 15 th, 2015
Verification audit : The company has developed and provide the proper business plan for Year 2015 until 2018, including cost for operational covering cultivation budget, harvesting budget, general budget, capital expenditure, CPO produc-tion budget, production budget (mill), hectare statement (utilized area), year of the plant, CPO and kernel sell-ing and cost, and profit estimation.
Criterion 4.3. (Major indicator 2) Subsidence of peat soils shall be minimised and monitored. A documented water and ground cover management programme shall be in place..
NCR 2015-05 of 09 (Major Non-Conformity) :
There is no guidance or procedure to manage peat land especially in subsidence and water level manage-ment.
Correction : To develop special SOP for Peat land management including guidance for subsidence measurement and monitoring, water level monitoring and water gate treatment.
Corrective Action : Implementation of the SOP Peat Land Management for water management, subsidence monitoring, and crite-ria for water table
Auditor Conclusions: Closed
Date of Closure : September 15 th, 2015
Verification audit : The company has developed a new SOP regarding to peat land management No.SOP- Dir. TAN 27 dated on September 1st, 2015, and completed with forms for monitoring recording. This SOP accommodates the guid-ance of subsidence gauge installment, water level gauge installment, water gate installment, mechanism for measuring, recording and water level management.
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Criterion 4.8 (Major indicator 1): A formal training programme shall be in place that covers all aspects of the RSPO Principles and Criteria, and that includes regular assessments of training needs and documentation of the programme.
NCR 2015-06 of 09 (Major Non-Conformity) :
The company is not maintain list of workers or staff who need training, and training need assessment is not available to determine kind of training that needs to be done
Correction : To develop need training assessment program based on competency matrix of employee.
Corrective Action : Continuing evaluation on needs of training based on SOP Training and Education for employee and utilizes the competency matrix of employee.
Auditor Conclusions: Closed
Date of Closure : September 15 th, 2015
Verification audit : The company has developed a competency matrix for every employee and records all the training that has been received. The matrix comes with evaluation to competency improvement based on competency standard. The evaluation results are then used as the basis for the analysis of training needs and as preparation of the training program. Training program in 2015 has already made base on the employee competency evaluation.
Criterion 5.2 (Minor indicator 2): Where a management plan has been created there shall be ongoing monitoring:
NCR 2015-07 of 09 (Minor Non-Conformity) :
There is no evidence or reports that indicate that the implementation of the inspections carried out at HCV area. Correction :
To re-conducting HCV and species monitoring align with HCV assesment recommendation and refers to SOP HCV monitoring No. SOP Dir.NKT-01. Corrective Action : To train staff that responsible for HCV to carry out HCV monitoring properly and reporting.
To complete monitoring report with HCV area condition
Auditor Conclusions: Evidence of immediate action ta ken was accepted. Effectiveness of implementa-tion to verified at next surveillance audit Criterion 4.7 (Minor indicator 1) Accident and emergency procedures shall exist and instructions shall be clearly understood by all workers. Accident procedures shall be available in the appropriate language of the workforce. Assigned operatives trained in First Aid should be present in both field and other operations, and first aid equipment shall be available at worksites. Records of all accidents shall be kept and periodically reviewed.
NCR 2015-08 of 09 (Minor Non-Conformity) :
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c. Report of Occupational Safety and Health Committee were submitted to the Department of Labor Man-dailing Natal regency dated July 13, 2015 did not include accident report and analysis
d. Records of the results of investigation of occupational accidents in 2015 is not yet available. Correction :
a. To revise the OSH report by including the accident report and analysis.
b. To conduct investigations of accidents in workplace in 2015 and make reporting Corrective Action : a. Ensuring that reports of OSH committee meet reporting requirements, including workplace acci-
dents report and its analysis. b. Ensure that every workplace accident investigation work has been done and reported. Auditor Conclusions: Evidence of immediate action ta ken was accepted. Effectiveness of implementa-tion to verified at next surveillance audit
Criterion 6.5 (Major indicator 2) Labour laws, union agreements or direct contracts of employment detailing payments and conditions of employment (e.g. working hours, deductions, overtime, sickness, holiday entitlement, maternity leave, reasons for dismissal, period of notice, etc.) shall be available in the languages understood by the workers or explained carefully to them by a management official.
Non-conformance No.2015-09 of 09 (Major non-conform ity)
Found evidence that daily worker didn’t get a copy of the employment contract made by the company and do not understand the contents of the contract Correction :
A copy of the daily employee's contract will be awarded to each daily employee concerned.
Corrective Action: Ensuring that a copy of the employment contract with daily worker have completed signed with promptly given to the employees concerned, so that they know their rights and obligations. Auditor Conclusions : Closed Date of Closure : September 05 th, 2015
Verification result:
The Company has submitted some evidences to close this nonconformity, namely:
1. Receipt of submission of employment contracts with daily workers for all afdeling (Afdeling 1 to 8 and Afdeling plasma)
2. Some pictures of handover employment contract and socialization to the daily workers.
3.3.2. RSPO SCCS
E.2 : Explanation
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Non-conformance SCCS No.2015-01 of 03 (Major non-co nformity)
CPO certified physical transaction of 1,500 tonnes in January 2015 has not been listed on the RSPO e-trace. Correction: The company provide addendum of agreement on the cancellation of CPO RSPO Certified sales transaction with the buyer PT. Pacific Indopalm Industry, which states that the CPO sold is Non RSPO Certified. CPO transactions are not recorded in the RSPO e-trace because the buyer PT. Pacific Indopalm Industry did not con-firm the recording in RSPO e-trace. Corrective Action: Ensuring and checking that each sales transaction of CPO and palm kernel which RSPO Certified recorded on e-trace. Auditor Conclusions: Closed. Date of closure : September 08, 2015
Verification result : The company has sent an addendum of sales agreement No. 1 which revision on contract sales agreement number 005/PJB-RMM/I/2015 and revised mass mbalance report.
E.3 : Documented procedures
Non-conformance SCCS No. 2015-02 of 03 (Major non-c onformity)
The company has not been carried out training/awareness/refreshment/update of information to related em-ployee about new SC standard Correction: The company conducting SCCS awareness/refreshment/update/training soon to all employess associated with RSPO SCCS implementation. Corrective Action: Creating a training program to employees / officers associated with SCCS continuously every year. Auditor Conclusions: Closed. Date of closure : September 04, 2015
Verification result : The company has sent SCCS training report which held on September 4, 2015. Training on SCCS new standard (November 2014) was Attended by 17 staff. Training also addresses the definition and application of mass balance and socialization procedure related to SCCS implementation.
E.4. Purchasing and good in
Non-conformance SCCS No. 2015-03 of 03 (Major non-c onformity)
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RSPO certified stamp used did not following the procedures, such as: 1. FFB receipt from estate and plasma did not stamped as FFB Certified. 2. PK RSPO Certified stamp used for sending invoices to the buyer without the support of PK certified
sales contract, 3. CPO RSPO Certified stamp used for sending invoices to the buyer without the support CPO certified
sales contract Correction:
1. Conducted refreshment training to all relevant parts, in particular weight bridge staf and production staf so they understand which Invoice / Slip that must be stamped in accordance with the sales and pur-chase Contract of CPO / PK RSPO Certified.
2. Put stamp on slip/receipt of FFB certified.
3. Will not put its stamp on the sales slip CPO / PK are not Certified RSPO. Corrective Action:
1. Creating a refreshment training program to employees / officers associated with SCCS continuously every year.
2. Ensuring the Slip of FFB receipt from certified source always stamped with RSPO Certified 3. Ensuring that the CPO / PK submitted in accordance with the sales contract, stamp RSPO Certified
used only for sales are supported by a purchase contract of RSPO Certified product. Auditor Conclusions: Closed.
Verification result : The company has sent some documents such as:
1. SCCS training report which held on September 4, 2015. Training on SCCS new standard (November 2014) was attended by 17 staff. Training also addresses the definition and application of mass balance and socialization procedure related to SCCS implementation.
2. Slip of FFB receipt from certified source (afdeling III dated September 02, 2015 and afdeling Plasma dated September 5, 2015) which has stamped with RSPO Certified.
3. Slip of delivery order for non RSPO certified product which not stamped withRSPO certified. Date of closure : September 04, 2015
3.4. Noteworthy Positive Component
Criterion 8.1. (Major indicator 1) A monitoring action plan based on the social environmental impact as-sessment and regular evaluation of plantation and mill operation.
Loosefruit collection point in the form of permanent (was cemented) so that waste and rock not carry over to mill
3.5. Conclusion and Recommendation for RSPO P & C an d Supply Chain Certification
The audit team has confirmed through the audit process that PT Rimba Mujur Mahkota has established and main-tains an effective system to ensure compliance with the RSPO P & C year 2013 (Generic) and Supply Chain Cer-tification System requirements (dated November 2014).
TUV Rheinland recommends that PT Rimba Mujur Mahkota be continuing approved for certification of compliance to the RSPO P & C year 2013 (Generic) and Supply Chain Certification System requirements (dated November 2014).
3.6. Issues Raised by Stakeholders and Findings P ertaining to Issues
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3.6.1. Issued raised during stakeholder interviews on-site
No. Stakeholders Issue Raised
1 Creche officer Working hour, job and responsible, facilities, wages
2 Assisstant of Division 3 housing
Chemist/spraying activities, harvesting, road maintenance, IPM, monitor-ing and management of HCV areas, fertilizing, OSH, PPE, boundary stones/pillars, training
3 Worker’s wife Facilities, sexual harassement, disposal domestic waste,
4 Harvester PPE, harvesting procedure, OSH, FFB criterion that may be harvested, wages
5 Smallholder scheme assisstant
Hectare statement, FFB productivity, management of peat soil, monitor-ing and management of HCV area i.e skull hill (bukit tengkorak), training
6 Assisstant of division 1 estate
Chemist/spraying activities, harvesting, road maintenance, IPM, monitor-ing and management of HCV areas, fertilizing, OSH, PPE, boundary stones/pillars, training
7 Mill manager Production process, FFB price, grading, FFB quality & quantity, quantity & quality of product, losses, SCCS
8 Head of warehouse Material stock for manuring activities
9 Fertilizing foreman in afdeling 2
Manuring activities
10 Assistant estate in afdeling 5
Road maintenance
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4.0 CERTIFIED ORGANISATION’S ACKNOWLEDGEMENT OF INT ERNAL RESPONSIBILITY
4.1 Date of Next Surveillance Visit
The next surveillance visit is planned for August 2016
4.2 Acknowledgements of Internal Responsibility and Formal Sign-Off by Client
It is acknowledged that the assessment visit was carried out as described in this report and we accept the as-sessment findings and report content. Signed on behalf of PT Rimba Mujur Mahkota …………………………………… Idris Management Representative November 30, 2015
Signed on behalf of TUV Rheinland Indonesia …………………………. Wahyu Wigati Wijayanti Lead Auditor November 30, 2015
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APPENDICES
Appendix 1 : Details of certificate
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Appendix 2 : Certification Audit Plan
Date / Time (1)
Organizational Unit and Processes Auditor / Abbrev.
Interviewee Procedure - EM/QM Element - Standard Chapter
Monday, August 24, 2015 06.00 - 07.10 Travelling from Medan to Padang RZ JT 231 (Lion Air) 06.20 – 08.05 Travelling from Jakarta to Padang WWW,
WHY GA 160
08.30 Travelling from Padang to site/Natal
All Auditor
Tuesday, August 25, 2015
08.00 – 09.00 • Opening Meeting • Introduction by team leader. • Presentation by Company’s man-
agement regarding progress of oil palm plantation and palm oil mill
All Au-ditor
Top Management & Related Manag-
er
09.00-12.00
Verification of correction and correc-tive action from previous audit
All Auditor
Related Manager
12.00-14.00 Break Lunch and Pray 14.00-17.00
Kebun Sikarakara dan Kebun Plasma
Verification of document about En-vironment, Agrochemical, OHS Is-sues • Agrochemical • OHS • Environmental • Waste • Continous improvement
Verification of document about Le-gal Land, Management Plan, Best Practices, HCV Issues • Transparancy • Compliance laws and regulations • Legal Land • Management plan • Water management • HCV • Continous improvement • Efficiency of energy • Reduce pollution and emission
Verification of document about Le-gal Land, Management Plan, Best Practices, HCV Issues • Transparancy • Compliance laws and regulations • Legal Land • Management plan • Water management • HCV • Continous improvement • Efficiency of energy • Reduce pollution and emission
12.00-13.00 Break Lunch and Pray 13.00-17.00 Audit process continued (field
assessment)
Thursday, August 27 , 2015 08.00-12.00
PKS Sikarakara
Verification of document about En-vironment, Agrochemical, OHS Is-sues • Agrochemical • OHS • Environmental • Waste • Efficiency of energy • Reduce pollution and emission Continous improvement
WHY
Mill Manager Prinsip 4 Criteria 4.6; 4.7
Prinsip 5 Criteria 5.3; 5.4; 5.6
Prinsip 8 Criteria 8.1
08.00-12.00 PKS
Sikarakara
Verification of document about Le-gal Land, Management Plan, Best Practices • Transparancy • Compliance laws and regulations • Management plan • Water management • Training • Continous improvement
RZ Mill Manager
Prinsip 1 Criteria 1.1; 1.2; 1.3
Prinsip 2 Criteria 2.1
Prinsip 3 Criteria 3.1
Prinsip 4 Criteria 4.4.3; 4.4.4;4.8
Prinsip 5
Criteria 5.1
Prinsip 8 Criteria 8.1
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Date / Time (1)
Organizational Unit and Processes Auditor / Abbrev.
Interviewee Procedure - EM/QM Element - Standard Chapter
08.00-12.00 PKS
Sikarakara
Verification of document about Best Practices, Socials and employees Issues • Best Practices • Environmental Doc (Social issues) • Social and employees • Continous improvement
14.00 – 16.00 Verification of document about En-vironment, Agrochemical, OHS Is-sues • Agrochemical • OHS • Environmental • Waste • Efficiency of energy • Reduce pollution and emission Continous improvement
WHY
Mill Manager Prinsip 4 Criteria 4.6; 4.7
Prinsip 5 Criteria 5.3; 5.4; 5.6
Prinsip 8 Criteria 8.1
14.00 – 16.00
Verification of document about Le-gal Land, Management Plan, Best Practices • Transparancy • Compliance laws and regulations • Management plan • Water management • Training • Continous improvement
RZ Mill Manager
Prinsip 1 Criteria 1.1; 1.2; 1.3
Prinsip 2 Criteria 2.1
Prinsip 3 Criteria 3.1
Prinsip 4 Criteria 4.4.3; 4.4.4;4.8
Prinsip 5
Criteria 5.1
Prinsip 8 Criteria 8.1
14.00 – 16.00
Verification of document about Best Practices, Socials and employees Issues • Best Practices • Environmental Doc (Social issues) • Social and employees • Continous improvement
05.00 – 15.00 Travelling from Site to Padang All Auditors
16.40 Travelling from Padang to Jakarta WWW, WHY
GA 167
18.15 Travelling from Padang to Medan RZ JT230
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Appendix 3 : List of Abbreviations
AMDAL Analisis Dampak Lingkungan & Sosial (Social & Environmental Impacts Assessment) CPO Crude Palm Oil EIA Environmental Impact Assessment ERTs Endangered, Rare & Threatened species FFB Fresh Fruit Bunches EFB Empty Fruit Bunches HCV High Conservation Value IPM Integrated Pest Management KUD Koperasi Unit Desa (Village Cooperative) LTA Lost Time Accident MSDS Material Safety Data Sheets NGO Non-Government Organization OHS Occupational Health & Safety PERDA Peraturan Daerah (Local Regulation) PK Palm Kernel POME Palm Oil Mill Effluent PPE Personal Protective Equipment PT Perseroan Terbatas (Company Limited) RKL Rencana Pengelolaan Lingkungan (Environmental Management Plan) RPL Rencana Pemantauan Lingkungan (Environmental Monitoring Plan) RSPO Rountable Sustainable Palm Oil SCCS Supply Chain Certification System SIA Social Impact Assessment SOP Standard Operating Procedure UKL Upaya Pengelolaan Lingkungan (Environmental Management Efforts) UPL Upaya Pengelolaan Lingkungan (Environmental Management Efforts)
Appendix 4 : Observations and Opportunities for Imp rovement
No. Observations / Opportunities for Improvement Criteria
1. Companies to perform the update procedure, especially in the References sec-tion, because there are not current reference, for example:
1. Procedure Committee of Occupational Health and Safety (P2K3) - SOP-Dir.SMK3-01, not included PP 50 Year 2012 on the Implementa-tion of Safety Management System and Occupational Health.
2. SOP Handling of Toxic and Hazardous Wastes (SOP.Dir.PKS-37; Rev.01, 12-12-2011); not include PP 101 Year 2014 on the Manage-ment of Hazardous and Toxic Waste
4.1.1 (Major)
2. Data effectiveness of the implementation of integrated pest management in or-der to demonstrate that the use of pesticides can be controlled at the minimum level
4.6.3 (Major)
3. Programs of Safety and health to consider the results of the risk assessment and the evaluation of legislation and improvement of the performance of sfaety and health
4.7.1 (Major)
4. Risk assessment and risk evaluation that is done by each unit / department 4.7.2 (Major) 5. Results of field visits:
1) At housing section III, found the needle pressure of fire extinguisher RMM-09 showed 0 (zero) while it was on the cards Sheet Inspection in August 2015, in the "Pressure on the position of the Green "given a check mark (√).
2) Eye Shower on hazardous and toxic waste warehouse already available,
4.7.5
(Minor)
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No. Observations / Opportunities for Improvement Criteria
but the construction is not appropriate for the state of emergency (using a regular sink), which leads to the water flow down
6. Social Management Document has prepared not accommodate the results of the Social and Environmental Impact Assessment (2013), such as:
• Dissemination of the concession area
• Socialization of health and cleanliness (there were complaints of exist-ence flies) etc.
6.1.3
(Major)
7. CSR implementing capacity needs to be enhanced through training relating to the management of CSR programs, community empowerment, participatory programming, mentoring and others.
6.1.4
(Minor)
8. There are several workers in estate who do not understand the contents of the collective labor agreement (CLA) between the company and worker unions
6.6.1 (Major)
9. Internal and External Communication Procedure SOP.Dir.MR-06 rev 02 dated 22-08-2015 in order to be disseminated to interested parties, especially related to the points that have been revised
