Audit Report
App./Cert. Date
RSPO20008 16/05/2011 Rev.01: 19 October 2011
PUBLIC SUMMARY REPORT
Client: Site Address:
Standard(s):
PT. SOCFIN INDONESIA Bangun Bandar Mill and Its Supply Bases Bangun Bandar Mill: Kecamatan Dolok Masihul Kabupaten SERDANG BEDAGAI 206691 IDN Its supply bases: Kecamatan Dolok Masihul Kabupaten SERDANG BEDAGAI 206691 IDN National Interpretation of RSPO Principles and Criteria for Sustainable Palm Oil Production, Republic of Indonesia, May 2008 Supply Chain Certification System (SCCS) Requirements
Scope of Certification:
COMMERCIAL- IN – CONFIDENCE The contents of this report must not be disclosed to a third party without the agreement of the SAI Global Client DISCLAIMER: This report has been prepared by SAI Global Indonesia (SAI Global) in respect of a Client's application for assessment by SAI Global. The purpose of the report is to comment upon evidence of the Client's compliance with the standards or other criteria specified. The content of this report applies only to matters, which were evident to SAI Global at the time of the audit within the audit scope. SAI Global does not warrant or otherwise comment upon the suitability of the contents of the report or the certificate for any particular purpose or use. SAI Global accepts no liability whatsoever for consequences to, or actions taken by, third parties as a result of or in reliance upon information contained in this report or certificate.
ACTIVITY ID: 337877 QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
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Audit Report
Bangun Bandar Mill PT. Socfin Indonesia Location: Kecamatan Dolok Masihul, Kabupaten Serdang Bedagai 20691, Sumatera Utara, Indonesia GPS Location: East 99⁰2'34.80'' North 30⁰19'54.73'' Capacity (annual MT CPO): CPO: 12,721.78 ton in 2010 PK: 2,418.28 ton in 2010 Bangun Bandar Estate PT. Socfin Indonesia Location: Kecamatan Dolok Masihul, Kabupaten Serdang Bedagai 20691, Sumatera Utara, Indonesia GPS Location: East 98o57‟58.70” – 99o4‟36.33” North 3o16‟24.46” – 3o20‟32.54” FFB Production: 53.628,01 ton in 2010 Total Area : 4146.85 Ha Planted Area : 2918.69 Ha
COMMERCIAL- IN – CONFIDENCE The contents of this report must not be disclosed to a third party without the agreement of the SAI Global Client DISCLAIMER: This report has been prepared by SAI Global Indonesia (SAI Global) in respect of a Client's application for assessment by SAI Global. The purpose of the report is to comment upon evidence of the Client's compliance with the standards or other criteria specified. The content of this report applies only to matters, which were evident to SAI Global at the time of the audit within the audit scope. SAI Global does not warrant or otherwise comment upon the suitability of the contents of the report or the certificate for any particular purpose or use. SAI Global accepts no liability whatsoever for consequences to, or actions taken by, third parties as a result of or in reliance upon information contained in this report or certificate.
ACTIVITY ID: 337877 QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
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Audit Report Table of contents Executive Overview Abbreviations Used
Page 4 4
1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12
SCOPE OF THE CERTIFICATION ASSESSMENT Introduction Audit Objective Scope of Certification Location of Mill and Estates Description of Supply Base Date of Plantings Other Certificates Held Organisational Information/Contact Person Time Bound Plan for Other Management Units Area of Plantation Approximate Tonnages Offered for Certification (CPO and PK) Date of Issue of Certificate and Scope of Certification
5 5 5 5 6 10 10 11 11 11 12 13 13
2.0 2.1 2.2 2.3 2.4 2.5
AUDIT PROCESS Certification Body Audit Methodology Qualification of the Lead Auditor and Audit Team Members Stakeholder Consultation Date of Next Surveillance Visit
13 13 14 14 15 15
3.0 3.1 3.2 3.3
AUDIT FINDINGS Summary of findings Recommendation Acknowledgement of Internal Responsibility and Formal Sign-off of Assessment Findings
16 16 43 43 Page
List of Tables 1 Mill and Estates GPS Locations 2 Organisation FFB Production 3 Age Profiles of Planted Palms 4 Other Certificates Held by Mill and Estates 5 RSPO Certification Time Bound Plan of PT. Socfin Indonesia 6 Estates and Area Planted 7 Hectare Statement
6 10 10 11 12 12 12
List of Figures 1 Map of Mill and Estates Location 2 Boundaries Pegs with Estate name 3 Martebing River with natural methods to slow down and stop aberration 4 Result of picking of Oryctes rhinoceros and its larva 5 Facility to mix agrochemicals 6 Watershed Protection
Page 7 19 23 25 27 33
List of Appendices A Audit Record B Nonconformities, Corrective Actions and Observations Summary C Stakeholder‟s issues and comment D Definition of, and action required with respect to audit findings
Page 44 47 57 58
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Audit Report Executive Overview SAI Global has audited PT. Socfin Indonesia operations comprising one mill, one oil palm estate, support services and infrastructure. PT. Socfin Indonesia operation was found complies with the requirements of the National Interpretation of RSPO Principles and Criteria for Sustainable Palm Oil Production, Republic of Indonesia, May 2008 and Supply Chain Certification System (SCCS) Requirements. The recommendation from this audit is that PT. Socfin Indonesia be approved as a producer of RSPO Certified Sustainable Palm Oil and Palm Kernel.
Abbreviations Used AK3U ANDAL BOD BPN BPS CPO CSR DO EFB FFB FRF GPS HCV HGU HPH IPM ISO KHT kWH LCC MSDS MT NGO OHS POM PPE PRA PK PKB PKOF PSBB RABQSA RKL RPL RSPO SA SCCS SIO SPSI WWTP
OHS Expert (Ahli Kesehatan dan Keselamantan Kerja Umum) Environmental Impact Analysis (Analisis Dampak Lingkungan) Biological Oxygen Demand National Land Agency (Badan Pertanahan Nasional) Central Bureau of Statistic (Biro Pusat Statistik) Crude Palm Oil Corporate Social Responsibility Delivery Order Empty fruit bunches Fresh Fruit Bunch Fractionation and Refinery Factory Global Positioning High Conservation Value Land Use Title (Hak Guna Usaha) Forest Authority Concession (Hak Penguasaan Hutan) Integrated Pest Management International Standards Organisation (Karyawan Harian Tetap) Kilo Watt Hour Legume cover crops Material Safety Data Sheet Metric Ton Non Government Organisation Occupational Health and Safety Palm Oil Mill Personal Protective Equipment Participatory Rural Appraisal Palm Kernel Joint Working Agreement (Perjanjian Kerja Bersama) Palm Kernel Oil Factory Bangun Bandar Selection Center (Pusat Seleksi Bangun Bandar) Quality Society of Australia Environmental Management Plan (Rencana Pengelolaan Lingkungan) Environmental Monitoring Plan (Rencana Pemantauan Lingkungan) Roundtable on Sustainable Palm Oil Social Accountability Supply Chain Certification System Operation License (Surat Izin Operasi) Indonesian Worker Union (Serikat Pekerja Seluruh Indonesia) Waste Water Treatment Plant
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Audit Report 1.0
SCOPE OF THE CERTIFICATION ASSESSMENT
1.1
Introduction
SAI Global conducted an audit of PT. Socfin Indonesia Bangun Bandar Mill and Its Supply Bases on 10 to 12 and 16 May 2011. The purpose of this audit report is to summarise the degree of compliance with relevant criteria, as defined on the cover page of this report, based on the evidence obtained during the audit of your organisation. SAI Global audits are carried out within the requirements of SAI Global procedures that also reflect the requirements and guidance provided in the international standards relating to audit practice such as ISO/IEC 17021, ISO 19011, RSPO Certification System and other normative criteria. SAI Global Auditors are assigned to audits according to industry, standard or technical competencies appropriate to the organisation being audited. Details of such experience and competency are maintained in our records. The audit team is detailed in the attached audit record. In addition to the information contained in this audit report, SAI Global maintains files for each client. These files contain details of organisation size and personnel as well as evidence collected during preliminary and subsequent audit activities (Documentation Review and Scope) relevant to the application for initial and continuing certification of your organisation. Details of your primary contact persons and their contact details and site addresses are also maintained. Please take care to advise us of any change that may affect the application/certification or may assist us to keep your contact information up to date, as required by SAI Global Terms and Conditions. Please note that this report is subject to independent review and approval. Should changes to the outcomes of this report be necessary as a result of the review, a revised report will be issued and will supersede this report.
1.2
Audit Objective
Certification Audit To determine the implementation of your organization‟s RSPO system; the capability and effectiveness of the RSPO system in ensuring continual compliance with the requirements of the National Interpretation of RSPO Principles and Criteria for Sustainable Palm Oil Production, Republic of Indonesia, May 2008 and Supply Chain Certification System (SCCS) Requirements. and in meeting its specified objectives (indicator); and the conformity of the RSPO system to stated principles, criteria and indicator.
1.3
Scope of certification
The scope of certification is the CPO production from one (1) Palm Oil Mill and one (1) FFB supply base owned by PT. Socfin Indonesia. Bangun Bandar Mill PT. Socfin Indonesia Location: Kecamatan Dolok Masihul, Kabupaten Serdang Bedagai 20691, Sumatera Utara, Indonesia GPS Location: East 99⁰ 2' 34.80'' North 3⁰ 19' 54.73'' Capacity (annual MT CPO): CPO: 12,721.78 ton in 2010 QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
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Audit Report PK: 2,418.28 ton in 2010 Bangun Bandar Estate PT. Socfin Indonesia Location: Kecamatan Dolok Masihul, Kabupaten Serdang Bedagai 20691, Sumatera Utara, Indonesia GPS Location: East 98o 57‟ 58.70” – 99o 4‟ 36.33” North 3o 16‟ 24.46” – 3o 20‟ 32.54” FFB Production: 53,628.01 ton in 2010 Total Area: 4146.85 Ha Planted Area: 2918.69 Ha
1.4
Location of mill and estates
PT. Socfin Indonesia mill and estate are located in North Sumatera Province. The geographical coordinate of the mill and estates are shown on Table 1. Table 1: Mill and Estates GPS Locations MILL AND ESTATE Bangun Bandar Mill Bangun Bandar Estate
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EASTING
NORTHING
99o 2‟ 34.80” E
3o 19‟ 54.73” N
98o 57‟ 58.70” - 99o 4‟ 36.33” E
3o 16‟ 24.46” – 3o 20‟ 32.54” N
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Audit Report Figure 1 Map of Mill and Estates Location
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Audit Report
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Audit Report
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Audit Report 1.5
Description of supply base
The FFB is sourced from one (1) organisation owned by PT. Socfin Indonesia. The hectare and FFB production of the plantation is shown on Table 2. Table 2: FFB Production of the supply base ESTATE
PLANTED AREA (HA)
Bangun Bandar
FFB (TON/YEAR)
2,918.69
53,628.01
Source: Socfin Indonesia, March 2011
1.6
Date of plantings Table 3: Age Profiles of Planted Palms Bangun Bandar Estate Planted Area
% of Planted Area
(Ha)
Year Mature
Immature
Mature
1984
43.54
1.49
1986
192.77
6.60
1988
45.29
1.55
1989
206.25
7.07
1990
174.79
5.99
1991
124.62
4.27
1992
72.56
2.49
1996
30.48
1.04
1998
141.81
4.86
1999
105.24
3.61
2000
100.83
3.45
2001
109.11
3.74
2002
34.16
1.17
2003
172.60
5.91
2004
257.22
8.81
2005
86.68
2.97
2006
123.50
4.23
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Immature
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Audit Report 2007
21.65
0.74
2008
75.02
2.57
2009
351.51
12.04
2010
281.39
9.64
2011
167.67
5.74
Total
2,043.10
875.59
Grand Total
70.01
2,918.69
29.99 100.00
Source: Socfin Indonesia, March 2011
1.7
Other certification held
The organisation is implementing quality, environmental, and occupational health and safety management system based on ISO 9001:2008, ISO 14001:2004, and OHSAS 18001:2007. The details of other certifications held are shown in the following table. Table 4: Certification Held by Mill and Estates MILL/ESTATE
ISO 9001:2008
ISO 14001:2004
OHSAS 18001:2007
Bangun Bandar Mill
Since 2008
Since 2008
Since 2009
Bangun Bandar Estate
Nil
Since 2008
Since 2009
1.8
Organizational information/contact person
PT. Socfin Indonesia Jl. K.L. Yos Sudarso No. 106, Medan 20115 Phone : (+62-61) 6616066 Fax : (+62-61) 6614390 Contact person : Mr. Hasan Bisri Head of System Management and Social Department Email :
[email protected]
1.9
Time bound plan for other management units
PT. Socfin Indonesia is committed to RSPO certification of all its Management Units located in North Sumatera and Nanggroe Aceh Darusallam. Time bound plan has been developed to achieve the RSPO certification for all its Management Units by 2013. The time bound detail was shown on Table 5. The time bound plan is realistic and challenging. Number of Estates which is certified are more than previous year. It was evident that the organisation is committed to meet the target that had been set in the time bound plan.
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Audit Report Table 5: RSPO Certification Time Bound Plan of PT. Socfin Indonesia, approved in May 2011 NO
NAME OF MILL
SUPPLY BASE
LOCATION
YEAR
1
Bangun Bandar Mill
Bangun Bandar Estate
North Sumatera
2011
2
Tanah Gambus Mill
Tanah Gambus Estate
North Sumatera
2011
3
Negeri Lama Mill
Negeri Lama Estate
North Sumatera
2012
4
Matapao Mill
Matapao Estate
North Sumatera
2012
5
Sungai Liput Mill
Sungai Liput Estate
Nanggroe Aceh Darusallam
2012
6
Lae Butar Mill
Lae Butar Estate
Nanggroe Aceh Darusallam
2013
7
Seunagan Mill
Seunagan Estate
Nanggroe Aceh Darusallam
2013
8
Seumayam Mill
Seumayam Estate
Nanggroe Aceh Darusallam
2013
9
Aek Loba Mill
Aek Loba Estate
North Sumatera
2013
Padang Pulo Estate Source: Socfin Indonesia, May 2011
1.10
Area of plantation
The areas details for organisation owned estates are shown on Table 6. Table 6: Estates and Area Planted ESTATE
MATURE (HA)
Bangun Bandar
IMMATURE (HA)
2,043.10
875.59
Source: Socfin Indonesia, March 2011
Table 7: Hectare Statement AREA
HECTARES
Mature area
2,043.10
Immature area
875.59
Total area planted
2,918.69
Emplacement and Mill QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
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Audit Report Nursery
3.81
Effluent, Isolation Drain
8.61
PLN
6.00
Conservation area
1.27
Bamboo
0.54
Other area
1,175.84
Total leased area
4,146.85
Source: Socfin Indonesia, March 2011
1.11
Approximate tonnages offered for certification (CPO and PK)
The approximate tonnages certified are: CPO/year: 12,721.78 ton and PK/year: 2,418.28 ton
1.12
Date of issue of certificate and scope of certification
The scope of certification is the CPO production from one (1) palm oil mill and one (1) organisation owned by PT. Socfin Indonesia. Date of issue of certificate will be the date on approval of this Assessment Report by the RSPO Secretariat.
2.0
AUDIT PROCESS
2.1
Certification body
PT. SAI Global Indonesia Graha Iskandarsyah, 4th floor Jl. Iskandarsyah Raya No. 66 C Kebayoran Baru, Jakarta 12160, Indonesia Phone : +62 21 720 6186, 720 6460 Fax : +62 21 720 6207 Contact person : Mr. Joko Prayitno Certification Manager Email :
[email protected] SAI Global is one of the world‟s leading business providers of independent assurance. SAI Global provides organisations around the world with information services and solutions for managing risk, achieving compliance and driving business improvement. We provide aggregated access services to Standards, Handbooks, Legislative and Property publications; we audit, certify and register your product, system or supply chain; we facilitate good governance and awareness of compliance, ethics and policy issues and provide training and improvement solutions to help individuals and organisations succeed. The SAI Global business is driven by two equally important client needs - the mandated need for organisations to conform to regulations, standards and legislation in all their locations, and the QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
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Audit Report operational need for organisations to improve business processes and procedures as well as corporate culture. As we are a global company, we can meet these needs for any client - those operating within one country's borders and in one language or those operating across borders and in many languages. There are three business units/divisions within SAI Global namely the Information Services Division, the Compliance Division, and the Assurance Division. The Assurance Division helps organisations manage risk, achieve process or product certification and drive improvement by providing training, registration audits and supplier management programs that can improve business performance. We provide independent audits, assessments and certification of your products or business processes to ensure they comply with industry standards or customer specific requirements. We understand how compliance with those standards can improve the efficiency, economy and profitability of your operation. With auditing and assessment staff located around the world, our clients include large global corporations as well as single site organisations.
2.2
Audit methodology
SAI Global performed a pre-audit to RSPO Principles and Criteria on 9 March 2011 to review PT. Socfin Indonesia Tbk.‟s RSPO system, confirm the scope for certification, determine organisation‟s preparedness for Stage 2 (Certification) Audit; review the adequacy of the SAI Global audit program and resources for Stage 2 (Certification) Audit including confirming and preparing the draft audit plan. The Certification Audit was performed on 10 to 12 and 16 May 2011. The audit programme was included in the body of report. The audit methodology for collection of objective evidences is site inspection, documentation and record review and interview with staffs, workers, and other stakeholders. Objective evidences from documentation/record review in one area may also be cross checked with other objective evidences in other areas and with the evidence of implementation on site during the audit. Inputs from stakeholders via letter, email, or other communication media were also considered for this certification audit.
2.3
Qualification of the lead auditor and audit team member
Ria Gloria – Lead Auditor Ria Gloria graduated with Bachelor of Chemical Engineering degree from Bandung Institute of Technology in 1994. She has working experience as Environmental Consultant for many years. She has completed ISO 14001 (1995), ISO 9001 (2004), and RSPO (2009) lead auditor training courses, and SCCS (2010). For the last 8 years she has been involved in quality (ISO 9001) and environmental (ISO 14001) management system audits for very broad industrial and in the palm oil sector since 2003 for several plantations and mills. She has received training for good agricultural practices including integrated pest management and high conservation value (2008-2009). Inge Triwulandari – Audit Team Member Inge Triwulandari graduated with Bachelor of Chemical Engineering degree from Bandung Institute of Technology in 1996. She has completed ISO 9001 (2000), ISO 14001 (1997) lead auditor training courses, RSPO auditor (2008), and SCCS (2010). For the last 12 years she has been involved in quality (ISO 9001) and environmental (ISO 14001) management system audits including in the palm oil sector since 2006 for several plantations and mills. She has received training for good agricultural practices including integrated pest management and high conservation value (2008-2009). QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
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Audit Report Sigit Yulianto – Audit Team Member Sigit Yulianto graduated with Bachelor of Metallurgical Engineering degree from University of Indonesia in 1993 and Master of Occupational Health and Safety from the same university in 2006. He has working experience in the manufacturing industry for many years. He also certified OHS Expert in Indonesia. For the last 14 years he has been involved in quality (ISO 9001) and occupational health and safety management system audits for very broad industrial and service sectors including in the palm oil sector since 2008 for several plantations and mills. He has received training for good agricultural practices including integrated pest management and high conservation value (2008-2009). Fadjar Deniswara – Audit Team Member He graduated with Bachelor of Industrial Engineering degree from National Institute of Technology in Malang. He is a Lead Quality Auditor for ISO 9001:2008 with SAI Global and registered in RABQSA. He has an experience for more than 11 years in auditing. He has an experience in audit with company with labour intensive type (e.g. textile, garments, shoes, etc). He has also registered as SA 8000 certified auditor. He has received training for good agricultural practices including integrated pest management and high conservation value (2008-2009). Irawan Y Bawono– Audit Team Member Irawan Y Bawono graduated with Bachelor of Food Technology from Gadjah Mada University on 1992. He has completed ISO 9001 (2008), ISO 22000 (2005) lead auditor training courses, RSPO auditor (2008), and SCCS (2010). For the last 5 years he has been involved in quality (ISO 9001) and food safety management system (ISO 22000 and HACCP) audits including in the palm oil sector since 2007 for several plantations and mills. He has received training for good agricultural practices including integrated pest management and high conservation value (2008-2009). Resit Sözer – Technical Specialist for HCV Issues Dutch nationality Biologist, since 1994 active in Indonesia in the field of Endangered Species research (Bornean Peacock Pheasant, Javan Hawk-eagle), Endangered Species surveys (Sumatran Rhino, Orang Utan, Javan Tiger), habitats surveys (conservation areas, HPH, oil palm plantations), wildlife trade surveys, wild animal rescue, reintroduction and restocking of wildlife, endangered species breeding programs (Bornean Peacock Pheasant, Javan Warty Pig, Blackwinged Starling), scientific publications and community involvement.
2.4
Stakeholder consultation
Stakeholder consultation was performed to internal and external stakeholders. Internal stakeholders included staffs and workers. External stakeholders were notified by placing an invitation to comment on the RSPO, PT. Socfin Indonesia and SAI Global websites. Letters were sent to individual stakeholders and telephone calls were performed to arrange meeting. Meetings and interviews with stakeholders as part of the audit were held. External stakeholders included governments, NGO and civil societies who have an interest in the organisation area and resident communities. Consultation with interested parties was conducted during audit, some of interview concern to social aspect and HVC. QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
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Audit Report List of stakeholders contacted Workers and Staffs Ramaya – Personnel of spraying Sawaliyati – Personnel of Fertilizing Daniel Saragih – Personnel of Harvesting Suaryadi – Personnel of Harvesting. Ridwan A Siregar – Chairman of Labour Union Chairman Sugiyono – Secretary of Labour Union Local community and Government Ishak Iswamto – Head of Bantan Village Masna – Secretary of Bantan Village Kamin – Secretary of Kerapuh Village Sri Wahyuni – Government Supervisor Budi – „Yakin‟ Farmer Group
2.5
Date of next surveillance visit
The next surveillance visit will be one year from approval of this report by the RSPO.
3.0
AUDIT FINDINGS
3.1
Summary of findings
As mentioned in above, objective evidences were obtained during the certification assessment for the entire RSPO indicator for 1 Mill and 1 Estate. The evidences for each major and minor indicator from each of these operational areas were aggregated to provide overall findings. Statements were provided for each of the Indicators to support the finding of the assessment team. During audit, 50 minor nonconformities against minor compliance indicators and 8 opportunities for improvement were issued. Detail of minor nonconformities and opportunities for improvement was provided in the body of report.
PRINCIPLES 1: COMMITMENT TO TRANSPARENCY
Criterion 1.1 Oil palm growers and millers provide adequate information to other stakeholders on environmental, social and legal issues relevant to RSPO Criteria, in appropriate languages & forms to allow for effective participation in decision making. Information request and their respond were determined in the procedure SOC/PSM/9.01 – social communication. Communication procedure was established and implemented by the organisation. Communication procedure described follow up of information request from interested party. All request from stakeholder directly respond by the organization. Records of information request from stakeholder were kept by Mill and Estate. Most of request was initiated from community around Estate (School Principal, Village Head, Village Institution) and also some request from Labour Department (Dinas Tenaga Kerja) and BPS (Central Bureau of Statistic/Biro Pusat Statistic). Some of requests are pertinent to information labour data from Dinas Tenaga Kerja, production report from BPS and donation request from village head and village QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
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Audit Report institutiom, and it was used for social activity for community around Estate. All information request from stakeholder was listed and recorded by Mill and Estate. Record of information and respond was kept by the organisation. Retention time for records was determined minimum 5 years.
Criterion 1.2 Management documents are publicly available, except where this is prevented by commercial confidentiality or where disclosure of information would result in negative environmental or social outcomes. SOC/PSM/9.01 dated 01 April 2011 was established to respond the request the public in regard the legal documents. The form to record the respond and associated follow up on respond has been established. It was reported that so far no request from public in regard legal documents. The retention time on such record is 5 years. Management documents which are publicly available have been available, e.g. HGU (Land Use Title), Plantation Operation Permit, ANDAL (Environmental Impact Analysis), RKL (Environmental Management Plan), RPL (Environmental Monitoring Plan) and CSR Program. Initial Environmental Impact Assessment documents (ANDAL, RKL and RPL) which were approved by Department of Agriculture of Republic of Indonesia on May 24, 1994 for Bangun Bandar Mill and Estate were available. The document was revised and approved by Head of Serdang Bedagai District Environmental Agency on June 20, 2005. The revised RKL and RPL were available at Bangun Bandar Mill and Estate. It was informed that the document will be available to the stakeholders on request. CSR programs were available. The CSR program involved estates community. Activity plan for activity for year 2011 was available and approved by the top management. Social activity report for year 2011 was made. Some of activities were conducted such as road repairs, book donation to school, etc. Public comments are welcome for CSR program and their requesting included in annually CSR program. Opportunity for improvement It could be considered using forms that required in the procedure SOP/PSM/9.01 for information and respond from stakeholder although information request was followed up with respond. It could be considered to evaluate CSR programs that were conducted by mill and estate. It is needed to review effectively of CSR program from mill and estate. It could be considered to improve understanding from employees by conducting socialisation of CSR programs and related RSPO procedure to all personnel at Mill and Estate. Based on the interview result, some of employee and staff did not fully understand RSPO procedures and CSR programs.
PRINCIPLES 2: COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS
Criterion 2.1 There is compliance with all applicable local, national and ratified international laws and regulations. Evidence of compliance with applicable local, national and ratified international laws and regulations of Bangun Bandar Mill and Estate have been provided, including valid permits (waste water discharge permit, river water and ground water abstraction permits, hazardous waste storage permit, boiler and diesel generator permits), provision of required infrastructure (waste water treatment ponds, hazardous waste storage), availability of MSDS, periodic environmental QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
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Audit Report parameter monitoring (stationary emission, ambient emission and ambient noise, moving source emission, waste water discharge quality, and ground water quality), system of plant cultivation, oil palm plantation, list of flora and fauna protected, management of guard area, minimum wage, labour law, occupational safety, employee social benefit. The records were sighted for period January 2010 to March 2011. Evidence of compliance with applicable environmental laws and regulations which concern the operation of Bangun Bandar Mill and Estate has been already evaluated internally as required by the procedure SOC/PSM/4.05. The procedure also describes mechanism for ensuring information of applicable environmental legal and other requirements were accessed, reviewed and applied. Updating of law and regulations change activities were well documented, and last update was performed in October 2010. Information on applicable legal and other requirements have been reviewed and summarised. Evaluation of compliance was documented within “Identification, Summary and Status of Compliance”. Last evaluation of compliance was performed in March 2011. There were some gaps identified, including availability of river water flow meter, arrangement of waste water discharge permit renewal, and utilisation of rain water against Ministry of Environment Decree #12/2009. The gaps have been already completed with action plan that described action to be taken, delegation of responsibility and timeframe. The action plan for renewal of waste water discharge permit has been settled in April 2011, where as two action plans remained open at the time of audit. Minor non-conformance against criterion 2.1 No flow meter installed for measuring river water abstraction, and flow meter used for measuring consumption of ground water has not been functioned since September 2010. It was informed that local authority has approved the estimation of river water consumption by using ratio of total FFB processed monthly. However no documented statement from the local authorities regarding this matter, although that calculation of the retribution and retribution payments were sighted. Several law and regulations have not been included in evaluation of compliance with law and regulations performed in March 2011, e.g. ground water abstractions permit, river management against Government Regulation #35/1991 and limited pesticide use based on Ministry of Agriculture Decree #7/permentan/sr.140/2/2007. In practice, these law and regulations have been complied. The result of evaluation of compliance with regulation Act No. 3/1992 in regards employee social benefit was reported complied to. In fact not all requirements have been complied, e.g. in regard to employee social benefit for non permanent employees.
Criterion 2.2 The right to use land can be demonstrated, and is not legitimately contested by local communities with demonstrable rights. The legal documents showing ownership and operation for Bangun Bandar Estate were evident, i.e.: The land use title: o HGU #2 o Total area: 4,146.85 Ha o Make reference to land situation map #76/04/IV/1997, dated January 23, 1997 o Valid to December 31, 2023 Plantation operation unit: o Decree #HK.350/821/Dj.Bun.5/XI/2011 o Total area: 4,146.85 Ha o Palm Oil Mill: Permit capacity: 25 ton FFB/hour, Installed capacity 23 ton FFB/hour Legal boundaries (peg) were indicated on land situation map. There a total of 85 pegs on the map. QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
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Audit Report The availability of peg on plantation area was verified by sampling and found satisfactory and well maintained.
Figure 2 Boundaries Pegs with Estate name There is no land conflict in Bangun Bandar Estate. Conflict settlement mechanism was described in the Procedure: Identification and Land Compensation Calculation – SOC/PSM/9.05.
Criterion 2.3 Use of land for oil palm does not diminish the legal rights, or customary rights, of the other users, without their free, prior and informed consent. Planted areas of the estates are wholly on Government land, leased under HGU as indicated above. No land settlement for the estate area mentioned above. Maps have been developed for estate indicating Legal demarcation and planted areas.
PRINCIPLES 3: COMMITMENT TO LONG-TERM ECONOMIC AND FINANCIAL VIABILITY
Criteria 3.1 There is an implemented management plan that aims to achieve long-term economic and financial viability. The long term plans for period 2011 to 2013 have been established. Key indicators have been included in the long term plan which include crop projection = FFB yield trends, FFB yield/ha/year (2011: 26.69, 2012: 26.06 and 2013: 24.92), mill extraction rates = OER trends, Cost of Production = cost per tonne of CPO trends, forecast prices and financial indicators. Implementation of the long term plan is monitored regularly to ensure key indicators are achieved and cost do not overrun from targeted projections. The long term plan for renewing parts of the oil palm plantation for the period 2011-2015 has been prepared. This plan includes the conversion of a 34.5 Ha block of the companies‟ Rubber plantation into oil palm plantation in 2011. Earlier, 438.7 ha of ex-Rubber plantation was already replanted with oil palm in the Tanjung Maria Plantation, which actually falls under the same concession license as Bangun Bandar Estate (HGU #2, February 1998). The replanting plan for Bangun Bandar Estate has been established for period 2011 to 2015. It was noted the following replanting plan: 2012, Division 1 QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
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Audit Report
2014, Division 1, 2 and 3 2015, Division 3
PRINCIPLES 4: USE OF APPROPRIATE BEST PRACTICES BY GROWERS AND MILLERS
Criterion 4.1 Operating procedures are appropriately documented and consistently implemented and monitored. The organisation has developed Standard Operating Procedures for Oil Palm Plantation in SOC/PSM/7.10 dated 1 February 2007. The SOPs consist of procedures for several processes including land clearing, nursery, preparation before replanting, fertilizing, drainage system, integrated pest management, maintenance of immature and mature upkeep and harvesting. Other than there were also other procedures, e.g. SOC-KKS/IK/00 for planting of oil palm, SOCKB/IK/07for road maintenance, SOC-KB/IK/01 for fertilising, SOC/PSM/7.10.17 for water management, SOC-KB/OK/02 for pesticide spraying. Estate activities are programmed in annual program. Activities program are such as pest and diseases census, fertilising, spraying, cleaning of trench and road maintenance. Estate Manager and Assistant check and monitor the activities at site regularly. Site observation was performed during audit to some activities: fertilising, spraying, road maintenance, replanting, cleaning of trench, caterpillar census, picking of larva, harvesting. Activities have been performed at defined interval. Records of activities were sighted, e.g. “Foreman Book”, “Daily Attendance and Overtime Sheet”, “General Workgroup Task”, “Data Collection Sheet”. The record covered activities type, number of worker, quantity of agro chemical use, quantity of activities output and area of activities. Standard Operating Procedures (SOP) has been established that describes processing and quality control including its reporting from reception of fresh fruit bunch up to dispatch of Crude Palm Oil and Palm Kernel. The procedures are documented on SOC-POM/PSM/7.08 (FFB receiving), SOCPOM/PSM/7.09 (processing of CPO and palm kernel) and SOC-POM/PSM/7.06 (delivery). Work instructions for supporting Mill activities were also sighted: SOC-POM/IK/01 to SOC-POM/IK/16 for loading ramp, sterilizer, hoisting crane operation, stripper, screw presser, continuous tank operation, purifier, vacuum dryer, decanter, sludge separator, fat pit operation, nut silo, nut cracker, separating tank, kernel silo, and clay bath. FFB that processed by Bangun Bandar Mill is received from own Estate (Bangun Bandar Estate) and the third party, Kelompok Tani Yakin as independent smallholder. The third party was not included in the scope of certification. The organization has established “RSPO Certification Policy for Independent Smallhorders” which was signed off by Top Management on 16 May 2011. The proportion of FFB from own Estate is around 50% of all. All of the FFBs are processed in same facility (Bangun Bandar Mill). See the capacity on scope certification above. Bangun Bandar Mill‟s CPO and palm kernel mostly delivered to FRF (Fractionation & Refinery Factory) of PT. Socfin Indonesia Tanah Gambus and local customer such as PT Musim Mas. All of Palm kernel is delivered to PKOF (Palm Kernel Oil Factory). A review operation daily report (January – May 2011) and site observation found that in general the documented procedures described above has been consistently implemented and monitored, with few exceptions. FFB is graded according to the quality. Grading is recorded in “FFB Receiving from Estate”. Item records were date and hour received; block estate, division, weight and quality. The record is input to ERP system; Harvest Plus. Rejected FFB is returned to supplier (only for third party FFB) and the good FFB then transferred to loading ramp. FFB then loaded onto lorry and go to sterilization unit. Sterilization processes was shown under control with regard to the cycle time of thermal process and pressure. Three peaks system with the pressure 2.8 - 3 kg.cm2 for 75 minutes was applied. All units are equipped with calibrated pressure gauge. Calibration tag was sighted. The sterilization activity is recorded on daily report. QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
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Audit Report After sterilization FFB then come into threshing process by releasing of the palm nut from the fruit bunch by monitoring the speed of feed, digesting, cutting up the palm by controlling the temperature. Released fruit then digested and pressed to get oil and release the fibre from nut. Process control is conducted by controlling the pressure and temperature. It was noted the temperature and pressure have been monitored and recorded. The thermometer and pressure gauge are calibrated regularly. Filtering, clarification and purification process then follows before the CPO pumped to crude oil tank. Vibrator filter, clarification process and vacuum is applied after that before the CPO pumped to daily tank. The palm kernel process reviewed include nut silo operation, ripple milling, clay bath operation, kernel drying, and kernel storage. Nut is dried by using blower and steam elements. Several parameters to be controlled are temperature and water content. Clay bath is used to segregate the palm kernel from the clay. The parameter to be controlled is the density of clay. It was observed that kernel temperature and moisture as well as the process parameters were within the specification. Delivery of CPO and palm kernel is conducted according to DO (Delivery Order) sent from sales at Medan Head Office. In general, records reviewed found that this activity has been done appropriately as described by internal procedure. In process quality inspection and the final product inspection is conducted by laboratory which is under PSBB and the daily record is sent to Mill. Compliance to the specification was observed. Minor non-conformance against criterion 4.1 It was observed during site observation that the recording of sterilization was not conducted as actual condition. The steam sterilizer #2 was down however it was not recorded on Rototherm report. Working Instruction for “Sounding” has not been established. Sounding reporting was not conducted in appropriate manner. Only one sounding record is reported on the daily report. Thermometer used for sounding has not been calibrated. Water analysis is done with not appropriate equipment. There was no scale on the pipe used for titration of water alkalinity.
Criterion 4.2 Practices maintain soil fertility at, or where possible improve soil fertility to, a level that ensures optimal and sustained yield. Soil and leaf sampling is analysed regularly to determine the nutritional status of soil, to assist and to be guided in the preparation of annual fertilising programme recommendation. Procedure of soil analysis SOC/PSM/7.10-15 dated 1 March 2011 mentioned that soil is analysed every 5 years. Procedure of leaf sampling SOC/PSM/7.10-16 dated 1 March 2011 mentioned that leaf is analysed annually two months after the first application. Method of sample taken and preparation of analysis was described in the procedure. Last soil and leaf sampling analysis was conducted by the external laboratory. Soil analysis was conducted by Param Agricultural Soil Surveys (M) SDN.BHD and leaf sampling analysis was conducted by CIRAD (Centre de coopération internationale en recherche agronomique pour le développement). Last report of soil analysis was issued in February 2007 and last report of leaf analysis was issued in June and July 2010. Method of soil sampling during analysis in 2007 was not clear. The method of sample taken was improved and described in the procedure. Schedule of soil analysis has been established. Next soil analysis is conducted in 2012. Visual analysis of leaf is conducted by staff from Socfin Medan Head Office during site visit to Estate. Schedule for site visit to Estate was sighted. Visual analysis was conducted in January QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
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Audit Report 2011. Result of visual analysis was reported in “Nutritional Status of the Palms and Field Visit of Blocks”. Report included observation result and its recommendation for improvement. Fertilising programme was developed by Agriculture Department in Socfin Medan Head Office assisted by CIRAD as consultant for all Division of Estate based on result of soil and leaf sampling analysis. PT. Socfin Indonesia does have own research institution. Fertilising programme covers area and time of application and type and dosage of fertiliser. Fertilising is performed manually. Result of fertilising was well recorded including date of application. It was noted that most of fertilising activity in the first semester has been applied. For the block which is replanted in 2012 was not fertilised. Fertilising activity was described in SOC-KB/IK/01. Legume cover crops (LCC) are grown to protect soil from erosion, improve soil fertility and control weed. The LCC grown is Mucuna brachteata. LCC is maintained through manual maintenance (cleaning from weed), fertilising and agro chemical spraying. Rock phosphate is used as fertiliser to grow LCC. LCC growth is monitored regularly. Fertilising program for LCC was sighted including the realisation. Empty fruit bunches (EFB) are applied in mature upkeep. Quantity and area applied was based on recommendation from Agriculture Department in Socfin Medan Head Office. EFB application was sighted. Area of which EFB applied was monitored. Land application of POME was not applied in the Estate. Minor non-conformance against criterion 4.2 Last soil analysis was reported in February 2007. Report mentioned that not all divisions were analysed. Criteria of soil analysed and location coverage of sampling point was not clear. Criteria 4.3 Practices minimise and control erosion and degradation of soils. Map of soil for Bangun Bandar Estate were available and documented in “Soil of Bangun Bandar Oil Palm Estate” issued by Param Agricultural Soil Surveys (M) SDN.BHD in June 2004. Map of soil mentioned that there were no fragile soils, there was only 3.5% of area is poorly drainage and 2.50 ha is peat soil. Bangun Bandar Estate has slopes 0 to 45%. Work instruction SOC-KKS/IK/00 dated 1 November 2009 describes preparation for planting including planting on slopes area. The organisation do not recommend plantings on slopes >60%. System for planting on slopes area is provided through terracing, levelling of terrace, and determining of planting space. To minimise and control erosion in slope area, several practices have been implemented such as terracing and growing of legume cover crops. Procedure of road maintenance is described in SOC-KB/IK/07. Estate has established annual road maintenance programme for government road, primary road, and secondary road. Road maintenance in Bangun Bandar Estate was conducted manually. Besides according to annual program, road maintenance activity was also conducted according to road condition. Record of road maintenance realisation was sighted included block of plantation maintained and distance of road maintained. However it was several parts of road was not well maintained. It was noted that there is peat soil area of ca 2.5 ha was encountered in block 68. Although procedure to manage peat soil has been established in SOC-KB/IK/08 however there is no subsidence of peat soils minimised under an effective and documented water management programme. The organisation has procedure of soil erosion control on marginal land at mature planting. The procedure mentioned that soil erosion in mature upkeep is monitored every three months. It was noted that several blocks have slope 45% and the area was still immature. Soil erosion monitoring QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
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Audit Report has not been necessary. Minor non-conformance against criterion 4.3 The peat area was not identified as HCV area as it has been developed for alonger period of time already, and the area was not mentioned in the HCV report. No best management practices for peat conservation are applied for the area. No piezo meter have been applied. Found not well maintained of several parts of road for transportation by vehicle and workers which normally using motorcycle.
Criterion 4.4 Practices maintain the quality and availability of surface and ground water. Bangun Bandar Estate was traversed by Martebing and Belutu River. Policy of riparian buffer zone management was provided in procedure SOC/PSM/9.06 dated 1 January 2011 and policy #PDGM/KS/Bi/470/10 dated 2 September 2009. Policy mentioned that Estate is prohibited to straighten the river, activities with chemical are prohibited to be implemented in the riparian buffer zone, e.g. herbicide spraying and fertilizing, and oil palms in riparian buffer zone is not replanted and let them grow naturally. Width of riparian buffer zone was adjusted with wide of river and defined based on consideration of technical, social and economical. Width of riparian buffer zone is range 8 meter to 100 meter. Border of riparian buffer zone was clearly identified by planting a line of Dracaena (Pohon Andong) or other vegetation which can propagate, easy to distinguish from surrounding vegetation. Warning board not to poison the fish, not to hunt and not to disturb riparian buffer zone was placed. The riparian buffer of the Martebing River is currently well managed; civil-technic and natural methods are being used to slow down and even completely stop aberration in several sample areas along this river, and a general management plan is in place to manage the threats of aberration and erosion along the river. Pollution prevented by means of a > 25 meters buffer zone where the application of agrochemicals is prohibited.
Figure 3 Martebing River with natural methods to slow down and stop aberration Procedure of water management SOC/PSM/7.10.17 has been established in Bangun Bandar Estate. Cleaning of primary and secondary trench is programmed annually. Realisation of cleaning of primary and secondary trench was recorded including length of trench cleaned. Quality of Martebing and Belutu Water River is planned to be analysed annually. Quality of Martebing and Belutu Water River was analysed by Laboratory of North Sumatera District Environmental Agency. Water sample was sent to the Laboratory on 13 April 2011. Measurement result mentioned that BOD and COD of Water River upstream and downstream exceeded the Government Regulation #82/2001. The quality of Water River in analysed annually. QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
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Audit Report Bangun Bandar Mill has established Water Management Plan, SOC/PSM/4.22, which was issued in October 2010. The plan described identification of water supply and arrangement of any necessary permit, measurements of water consumption, and water distribution. It was sighted that currently there were two water supplies for Bangun Bandar Mill: river water and ground water which currently still held valid permit from relevant authorities. All rivers were categorized as HCV 1.1 and HCV 4.1. This was discussed in criterion 5.2. The water supply, distribution and consumption were described in water management document, SOC/DP.4.22-01. Water consumption for boiler feed-water was sighted; daily supply to boiler was recorded based on flow meter reading. Other water consumption was currently monitored through estimation based on ratio of processed FFB. Total Mill water consumption and boiler water consumption was reported monthly by Bangun Bandar Mill to Medan Head Office. As mentioned previously above, monitoring of mill water consumption per ton of FFB was based on ratio of processed FFB. However the water consumption data used to estimate Mill water consumption was from River Water instead of Ground Water. The Water Management Plan described that river water was used for supply of boiler feed water and mill water consumption was supplied from ground water. Environmental Monitoring Plan requires that quality of waste water discharged from Bangun Bandar Mill waste water treatment ponds are monitored monthly including BOD. Evidence of monitoring of BOD was reviewed for period January 2010 to March 2011 against environmental limit required by Environment Ministry Decree #Kep-51/MENLH/10/1995 annexure B-IV; however record of BOD for several months were not evident during audit. Minor non-conformance against criterion 4.4 Quality of Martebing and Belutu Water River is being analysed by Laboratory of North Sumatera District Environmental Agency. Water sample was sent to the Laboratory on 13 April 2011. Result of analysis has not been finished yet by the Laboratory. No evidence of measurement of daily ground water abstraction as well as river water, as required by procedure water management SOC/PSM/4.22. Currently flow meter exists and functioned only for Boiler feed-water. The flow meter exists for measuring ground water consumption has not been functioned since end of September 2010. Monthly monitoring data of Mill water consumption per ton of FFB was not accurate (January 2010 to April 2011), e.g. water used for Mill was actually from ground water, but data reported was from river water. BOD of effluent is required to be monitored monthly. However result of BOD monitoring of waste water treatment ponds effluent in March 2010 and December 2010 could not be found during audit.
Criteria 4.5 Pests, diseases, weeds and invasive introduced species are effectively managed using appropriate Integrated Pest Management (IPM) techniques. Procedure for IPM to control pests, diseases and invasive introduced species has been established in SOC/PSM/7.10-13 for IPM of Caterpillar and Bagworm Attack, SOC/PSM/7.10-11 for IPM of Oryctes rhinoceros, circular letter #Tan/Keb.KS/Bi/88/2005 dated 6 May 2005 for IPM of rodent. These procedures include setting out of technique to be implemented, chemical to be used, locations to be applied, and time frame for implementation. Program for IPM is established annually. IPM programme includes pest and diseases detection, census and controlling, use of pesticide and herbicide. The implementation of IPM is monitored. Census of caterpillar is conducted regularly to determine its controlling. Controlling is performed based on level of attack. There are three levels of attack: low, medium and high. Result of census was recorded including area of census, type of caterpillar, QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
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Audit Report quantity of caterpillar and level of attack. Use, dosage and concentration of agro chemical was also recorded when controlling of caterpillar was applied by agro chemical spraying. One of controlling of Oryctes rhinoceros is through picking of Oryctes rhinoceros and its larva. The Oryctes rhinoceros and its larva was conducted at the decayed parts of such palms, the palms naturally fallen and the palms still standing but presenting rotten tissues at the bottom. The controlling was conducted in immature upkeep and land clearing area. Quantity of Oryctes rhinoceros and its larva was recorded. Census of Oryctes rhinoceros is also performed regularly. Result of Oryctes rhinoceros attack and map of attack was sighted. Agro chemical spraying is performed if Oryctes rhinoceros attack are higher than the critical point.
Figure 4 Result of picking of Oryctes rhinoceros and its larva Training of IPM has been performed to Division Assistant, Pest Foreman, and Census Foreman. List of participant attendance was sighted. Pesticide toxicity units (a.i. / LD 50 / FFB tonnage) have not been monitored to active ingredient. The organisation requested the external laboratory to analyse the residue of active ingredients (i.e. deltametrin, sipermetrin and λ-sihalotrin) of agro chemical in FFB and CPO. The result mentioned that the active ingredients were not detected in FFB and CPO. Minor non-conformance against criterion 4.5 There was no monitoring extent of IPM implementation regarding growth and length of beneficial plants. Training of IPM implementation has been conducted to one of four assistant and foremen. It was noted that the assistant was moved to other Estate. The three other assistants have not been trained regarding IPM implementation. There was no monitoring of pesticide toxicity units (a.i. active ingredient / LD50 per tonne of FFB or per hectare). Opportunity for improvement Although IPM techniques regarding rodent has been developed in the circular letter, it could be considered to establish the IPM techniques in the documentation system.
Criteria 4.6 Agrochemicals are used in a way that does not endanger health or the environment. There is no prophylactic use of pesticides, except in specific situations identified in national Best Practice guidelines. Where agrochemicals are used that are categorised as World Health Organisation Type 1A or 1B, or are listed by the Stockholm or Rotterdam Conventions, growers are actively seeking to identify alternatives, and this is documented. QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
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Audit Report Agrochemicals used by Bangun Bandar Estate has been registered and licensed by Agriculture Department, e.g. Round up 486 SL – license RI 01030120001560 expired on 18 March 2016, Gramoxone 276 SL – license RI 36/8-2006/T expired on 8 September 2011, Ally 20 WDG – license RI 837/4-2009/T expired on 30 April 2014, Metaprima 20 WDG – RI 1897/7-2008/T expired on 7 August 2013. It was noted that there were no agrochemicals being used which are not on this register during this audit. Agrochemicals use and their register number refer to Pesticide Commission Book “Buku Komisi Pestisida”. Agrochemicals used have been recorded including active ingredient used, area treated, amount applied per ha, use of selective product and number of applications. Several record of pesticide used was sighted, e.g. application schedule, list of pesticide use in oil palm estate, work achievement and pesticide use, stock card of agrochemicals. The record covered date of application, quantity of pesticide use and name of sprayers. The records were sighted in all Divisions. During audit, spraying of weed was observed in Division #1. It was noted that pesticides (gramoxone and ally) used was registered agrochemicals. Dosage of pesticides use, target weed was inline with circular letter #TN/SE/KS/Bi/020/2007. It was noted that agrochemicals used were inline with target pest, weed or disease, determined dosage, and applied by qualified person. PPE used during spraying of pesticides are boots, apron, safety glass, respiratory mask and hand gloves. Agrochemicals have been applied by qualified persons who have received usage of limited pesticide training. Training was delivered by supplier on 28 September 2010 and by North Sumatera Health Department and Pesticide Commission on 4 April 2011. Training record was sighted for all sprayers in all estates. Training covered handling of concentrate chemical/agrochemical and spraying method including pesticide hazard. Agrochemicals are stored in the determined area separated from fertiliser and other chemicals. Agrochemicals storage is provided in each Division. Agrochemicals storage is locked areas with limited access. The storage is ventilated through cross flow ventilation. MSDS and hazard symbol label are provided nearby of agrochemicals. Emergency shower and eyewash are also provided to anticipate in case of an emergency of chemical handling. PPE for handling of chemicals are provided including boots, apron, safety glass, respiratory mask and hand gloves. The possible spill is managed. Secondary containment is provided around the chemical storage area. Spill kit was also provided in the area. EHS patrol was regularly performed monitor possible spill. Prior to be used in the field, agrochemical was diluted in Division Office. There is a designated area of mixing which was completed with roof, secondary containment and information of agrochemical hazard. The area is also used for cleaning the agrochemical containers and fertiliser sacks. Notice is displayed in the area treated with highly toxic pesticides, e.g. pesticides warehouse and facility to mix agrochemical.
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Audit Report
Figure 5 Facility to mix agrochemicals Handling of empty agrochemical containers was described in procedure SOC/DP/4.10-01. All empty agrochemical containers were triple rinsed and destroyed prior to be disposed in the designated area and separated with organic and inorganic waste landfill. Records of chemical containers quantity disposed and photograph of disposal activity were evident. The other empty agrochemical containers can be reused during spraying. Paraquat is still used in Bangun Bandar Estate. Data of paraquat used is provided since 2003. It was observed that paraquat use was fluctuated year to year. Agriculture Department of Socfin Medan Head Office has defined 20-25% reduction of paraquat use for Bangun Bandar Estate in 2011. Each division has established monthly program of paraquat use to ensure that paraquat use is controlled and reduced. The realisation was reported to Agriculture Department of Socfin Medan Head Office to control paraquat use. There are medical checks up to all workers. Medical check up for agrochemical operators is conducted annually. Medical check up 2011 was sighted for all agrochemical operators in Bangun Bandar Estate. Results of medical check up in general were good. Ethic policy mentioned that no work with pesticides for pregnant and breastfeeding women. All divisions still involve women as pesticides sprayer. To ensure that there were no pregnant and breastfeeding women during spraying of pesticides, there are lists of women worker including data of monthly checking conducted by nurses. Minor non-conformance against criterion 4.6 Agro chemical solution carried out to site was not completed with information of hazard nature of agro chemical. Decis 25 EC with active ingredient Delta metrin was used within organisation. The agro chemical has had license from Department of Agriculture however the agro chemical has not been registered in the list of pesticide used within organisation. Opportunity for improvement: It could be considered to improve transportation system of agro chemical solution from division warehouse to site, e.g. by layering with plastic on the transportation unit to prevent agro chemical spill during transportation. It could be considered to improve record of paraquat consumption, e.g. report the percentage of target consumption.
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Audit Report Criteria 4.7 An occupational health and safety plan is documented, communicated and implemented.
effectively
It was noted that Bangun Bandar Mill and Estate has been certified to occupational health and safety management system based on OHSAS 18001: 2007 by SAI Global. Occupational health and safety policy has been established and has signed by the highest management level. The policy statement includes the commitment to prevent injury and ill health, to comply with regulation and for continual improvement. The policy was made available for accessing by employees and other stack holder and displayed on strategic locations of Estate Office and Mill Office. Occupational health and safety target and programme are established annually for Mill and Estate. The target and programme 2011 was sighted with the main target and programme was in regard to zero accident and zero ill health. A safety committee has been established and already approved by local authority. The chairman of the committee is the highest level management of estate and the secretary of the committee is the OHS expert (AK3U) and the member consists of representative of each section. OHS expert is also a safety officer and acts as a representative on health and safety. The Safety Committee is responsible for the OHS programme and its implementation. Monthly meeting was held by Safety Committee to review the progress and implementation of OHS programme. Results of the meeting including the recommendation and action plan were recorded in the minutes of meeting - these were sighted during the audit. In the employees‟ level, a daily briefing is performed by supervisor to his/her members. In this event, the supervisor provides briefing on the issues of production including health and safety issues such as the use of PPE and accident prevention. Health and safety inspection was performed by the Safety Officer to identify any unsafe acts and conditions and PPEs used. Records of health and safety inspections were sighted. The hazard exists in the operations and activities of Mill and Estate were identified and the risks were assessed using documented risk assessment methodology. Hierarchy of control principle was applied to determine risk control. It was noted that most risks were controlled by combination of establishment of procedure or work instruction, safety signage and the use of PPE. Sighted procedures or work instructions were included for estate activities such as planting/re-planting, fertilizing, insecticide, herbicide and pesticide spraying, road maintenance and harvesting, clinic and warehouse. Division warehouse were observed during the audit. MSDS and hazard symbol label were provided nearby of chemicals. Emergency shower and eyewash was also provided to anticipate in case of an emergency of chemical handling. PPE for handling of chemicals were provided including boots, apron, safety glass, respiratory mask and hand gloves. Fertilizer warehouse has a good air circulation. Several activities of estate were observed during the audit e.g. spraying and harvesting. The workers for spraying were provided with PPE including boots, apron, respiratory mask, safety glass and hand gloves. Hazard symbol label was provided at the container of pesticide/herbicide/insecticide. Interview with workers indicated that they have a good understanding on hazard and risk of their work. Interview with workers also indicated that they were provided by the organisation with the medical facilities (clinic or referred hospital). The supervisors were provided with first aid kit. Transportation and heavy vehicles for Estate activities such as tractor, trailer and grader were regularly maintained. The operators (drivers) were found having license from local authority (SIO). Workers were staying at the estate housing. They were using motorcycle for reaching the worksite. QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
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Audit Report They were using helmet for safety reason and the motorcycle was maintained. Transportation (truck) and heavy vehicles for Estate activities such as tractor, trailer and grader were regularly maintained including the safety devices. The operators (drivers) were found having license from local authority (SIO). Road inside estate was continuously maintained for safety and productivity purpose. Workshops were available at Mill. Small compressor tanks were certified by local authority. Gas cylinders were placed and chained to prevent unintended fall and also provided with flash back arrester (non-returnable valve). PPE for welder was appropriately provided. Welders were also certified by local authority. The fuel tank was also available. Hazard symbol label was provided at the tank. Fire extinguishers were also provided appropriately. As for Bangun Bandar Mill, the risk assessment has been conducted; sighted records including for receiving and handling of FFB, sterilizer, boiler, crane operation, conveyor, cleaning of CPO tank, maintenance and workshop, laboratory. Procedure and work instructions were also established to control the operation including controlling the risk. Evident of risk control were sighted e.g.: Boilers were tested and certified in accordance to local regulations. Regular maintenance was also performed except for finding below. Process parameters of boiler operation was established, controlled, and recorded. Boiler operators were certified by local authority. Regular maintenance was also performed and the operators were also certified and trained in accordance with local regulations. Pressurized vessels (sterilizer, compressor tanks) were tested and certified in accordance to local regulations and completed with safety valve and pressure gauge. Fuel tanks were completed with secondary containment and fire extinguishers. Lock Out Tag Out procedure was in place and implemented especially for maintenance activities. Permit to Work procedure was also established and implemented for high risk activities and work of contractor. Workers were wearing appropriate PPE. Safety signage was properly provided at locations of Mill. Most stair/ladders were provided with the hand rail. Regular monitoring and measurement of workplace environmental was performed including for dust level, noise level, illumination level, temperature, humidity. The organisation provides accident insurance to employees-however currently only for permanent employee, see finding below. Clinic was also available to provide medicine and medical treatment to employees and family. The organisation policy mentioned to perform medical check-up annually to all employees. Medical check up 2010 was sighted for Bangun Bandar Mill and Estate. Medical check were divided into general medical check up to all employees and special medical check up to employees witch exposed to specific hazard (e.g. chemical, dust and noise). Parameters for medical check up were including physical checking (dent, eye, skin, etc) and laboratory test (blood, urine, Rontgen, audiometric, spirometry). Results of medical check up in general were good and a few employees have been referred to specialist doctors for further checking, e.g. in regard hearing loss problem. Medical records were maintained. The training in regard to occupational health and safety has been provided and sighted during the audit including for OHS expert for Mill and Estate, first aid, spraying, emergency response and preparedness, heavy vehicle operators, OHS socialization, chemical handling, manual handling, boiler operators, crane operators, etc. Training records were maintained. The contractor‟s workers were also trained during safety induction and training relating to work permit. The procedure for emergency preparedness and response has been established. The procedures include fire and explosion, toxically emergency, chemical spillage. The organisational structures emergency response and preparedness were established at Mill and Estate. The organisation structure mainly consists of commander, medical team, evacuation team, fire fighting. The QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
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Audit Report responsibilities and authorities of team were defined and documented. The important telephone numbers for external parties were also identified for emergency purpose e.g. hospital, police and local fire brigade. The emergency response and preparedness equipments are provided and regularly inspected e.g. fire extinguisher, water tank truck, water pump, and hydrant. Regular maintenance and inspection was performed to this equipment. The schedule for exercising the emergency response and preparedness was established and sighted for 2010. Fire emergency response and preparedness procedures have been exercised for the Mill and Estate. Last emergency simulation was conducted on June 2010 (Mill) and February 2011 (Estate). The first aider training was given by the organisation doctor to supervisors, assistant, supervisor and group leaders both for Mill and Estate. They were also provided with first aid kits. Records of such training were sighted. They were daily in charge in operation of the Mill and Estate and in case an emergency, they will be immediately able to provide first aids treatment. The system to record accident was established in the form of procedure. The procedure was dealing with accident reporting, investigation as well as corrective and preventive action to prevent action. Accident statistic was made monthly which include also fatality accident, loss time accident, medical treatment case, and property damage. To the time of audit, no fatality accident was happened.
Minor non-conformance against criterion 4.7 The first aid kit was not available at harvesting activity (Foreman Mr. Junadi) and at the pile construction of composting project by contractor. It was found non-permanent employees working for loading FFB to truck without worn PPE considering the risk. Work instruction for harvesting did not mention requirement on OHS, e.g. the requirement for using complete PPE. The vertical stair to access water torn was not provided with cover for fall prevention. The housekeeping of pump house for waste water treatment was very poor. Found several poor conditions of electricity, e.g. at pump house of WWTP, most electrical panel with electrical hazard were accessible by un-authorized persons. Noise hazard at mill was not well controlled, e.g. most workers did not wear hearing protection. In the area of workshop, found oil jerry can without any identification of content and hazard symbol. Last inspection and test of hoisting crane was on 2008. Inspection and test must be conducted every 1 year. The cleaning CPO tank just been recently performed in April 2011. However, the confined space entry guideline including safe work permit was not implemented. The schedule for exercising of emergency plans for 2011 has not been issued. Accident insurance scheme for non-permanent employees has not been established and provided.
Criterion 4.8 All staff, workers, small holders and contractors are appropriately trained. The competency requirements were set and established in the form of personnel qualification for all functions within organization including for estate manager, factory manager, supervisors of estate and mill, foreman, sprayer, harvester, heavy equipment operator. The competency requirements consist of education, experience and training. The annual training plan 2010 was sighted and most of the plan has been realized. Evaluation of training was performed after training realization. The system to record the training record of each employee was established in the form of employee training history. The training plan 2011 has not been approved by the management, even the budget amounting IDR 540,288 for external training has been allocated. The work of QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
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Audit Report contractor was occupied by the contract agreement. The requirement that the contractor provide the trained person was included in the contract, e.g. Contract with CV. Surya Baru for land clearing. The work permit system was established to control the work of contractor. Minor non-conformance against criterion 4.8 The existing training requirements stated in personnel qualification does not consist of training related to HCV and social issues. Training plan for 2011 has not been established. It was noted that some employees have not completely follow the training stated in personnel qualification e.g. Spraying Supervisor and Processing Supervisor.
PRINCIPLES 5: ENVIRONMENTAL RESOURCES AND BIODIVERSITY
RESPONSIBILITY
AND
CONSERVATION
OF
NATURAL
Criterion 5.1 Aspect of plantation and mill management, including replanting, that have environmental impacts are identified, and plant to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continuous improvement. Initial Environmental Impact Assessment documents (ANDAL, RKL and RPL) which were approved by Department of Agriculture of Republic of Indonesia on May 24, 1994 for Bangun Bandar Mill and Estate were available. The document was revised and approved by Head of Serdang Bedagai District Environmental Agency on June 20, 2005. The revised RKL and RPL were available at Bangun Bandar Mill and Estate. Bangun Bandar Mill and Estate implemented procedure for identifying environmental aspect and evaluating its impact based on Environmental Management System ISO 14001:2004, SOC/PSM/4.04. The result of environmental aspect and impact identification and evaluation was documented within Identification of Environmental Aspect, SOC/Form/4.04-01. As required by the procedure, the information of environmental is reviewed and updated regularly. Last review and update of environmental aspect and impact register for Bangun Bandar Mill and Estate was performed on March 01, 2011. Bangun Bandar Mill and Estate has ensured that all activities with significant environmental impacts were managed. Control measure were defined and implemented for ensuring that negative environmental impact were prevented or mitigated. There were two types of control measures defined: engineering control and administrative control. Detail of control measure applied for each activity was described in Significant Environmental Aspect Management, SOC/Form/4.13-02, which was last updated on March 01, 2011. The implementation of those control measures are monitored during monthly environmental patrol and also round of internal audits. Implementation of Environmental Management Plan and Environmental Monitoring Plan is reported quarterly in coordination between Bangun Bandar Mill and Medan Head Office. For 2010 report was sighted for March 2010, August 2010 and December 2010, and March 2011. The reports were submitted to North Sumatera and Serdang Bedagai District Environmental Agency completed with receipt note.
Criteria 5.2 The status of rare, threatened or endangered species and high conservation value habitats, if any, that exist in the plantation or that could be affected by plantation or mill management, shall be identified and their conservation taken into account in management plans and operations A High Conservation Value Management Plan has been prepared, and available at the site. Posters QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
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Audit Report and sign boards concerning HCV areas and protected species are available in the necessary places. All staff and employees are informed about HCV areas and ERT species. Identification of any protected, rare, threatened or endangered species and HCV habitat has been performed by Forestry Department of Bogor Agricultural Institute (IPB) for PT. Socfin Indonesia Bangun Bandar Estate. The HCV assessment performed in September to October 2009. Appropriate measures to preserve rare, threatened or endangered species or high conservation value habitats have been taken in Bangun Bandar Estate. The organisation established procedure SOC/PSM/9.07 to manage HCV area. The HCV management and monitoring plan has been prepared. It was sighted that the management and monitoring plan were consistent with the identified HCV in the assessment report. HCV 1.1, HCV 1.2, HCV 4.1 and HCV 6 were identified. HCV 1.1 and HCV 4.1 are located in riparian buffer zone of the Belutu River and Martebing River (38.32 Ha). Two species of birds endangered based on red list of IUCN were identified, e.g. Alcedo euryzona and Pycnonotus zeylanicus. Public cemetery was identified as HCV 6. The HCV management and monitoring plan described measures taken for each HCV and its monitoring. Relevant laws were taken into account for determining appropriate measure including Government regulation #7/1999, President Decree #32/1990, and Government regulation #35/1991. HCV management areas maps were established. The riparian buffer of the Martebing River is currently well managed; civil-technical and natural methods are being used to slow down and even completely stop aberration in several sample areas along this river, and a general management plan is in place to manage the threats of aberration and erosion along the river. Pollution prevented by means of a > 25 meters buffer zone where the application of agrochemicals is prohibited. Some areas along the Martebing and Belutu Rivers are occupied and cultivated by the local community. However, during a Public Consultation meeting in August 2010 at Dolok Masihul subdistrict, the local community leaders were already informed about the importance of HCV areas such as the Riparian zones, and their goodwill to help to conserve these areas was expressed here. In addition, sufficient sign boards are in place to urge people (workers and community) not to disturb the riparian zones, wildlife or the water bodies. These sign boards are regularly monitored (checked) and replaced, if necessary. The riparian zones are also being managed and monitored. Bangun Bandar Estate has appointed HCV officer to ensure the implementation of management and monitoring plan. The organisation‟s HCV management plan has made specific reference to the threatened species found to exist in the area (e.g. Alcedo euryzona and Pycnonotus zeylanicus). The HCV management plan includes monitoring existence of threatened species, to provide warning sign (i.e. hunting is prohibited), to eliminate disturbance to the habitat of threatened species. Monitoring records were sighted to ensure that management plan is implemented, e.g. warning sign and board monitoring, monitoring of nuisance, river water quality monitoring, availability of flora and fauna classified as HCV.
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Audit Report
Figure 6 Watershed Protection Minor non-conformance against criterion 5.2 Monitoring of nuisance to HCV area was conducted once in February 2011. Monitoring plan mentioned that monitoring of nuisance to HCV area is conducted monthly. Availability and condition of HCV 6 regarding public cemetery was not monitored.
Criterion 5.3 Waste is reduced, recycled, re-used and disposed of in an environmentally and socially responsible manner. Identification of waste and pollution sources from Bangun Bandar Mill and Estate activities was evident. The source of pollution and type of waste was documented within Identification of Environmental Aspect, SOC/Form/4.04-01. Procedure waste handling was established and implemented, SOC/PSM/4.11. The procedure required waste to be segregated from point of generation. In addition Mill and Estate also required to established Waste Register, SOC/Form/4.11-01, which described wastes generated from each activity/location, its classification (organic, inorganic or hazardous), and its control measure. Empty agrochemical containers from Estate activities were cleaned using a triple rinse method. Empty agrochemical cans and bottles were disposed to landfill and separated from organic and inorganic. Quantity of empty agrochemical cans and bottles disposed was recorded and photograph of empty agrochemical cans and bottles landfilling was sighted. Empty agrochemical jerrycans were reused for chemical solution during spraying. Fertiliser sacks were cleaned prior to be reused for piece of FFB layer during harvesting. Quantity of empty agrochemical jerrycans cleaned fertiliser sacks cleaned was recorded. All Divisions in Bangun Bandar Estate have been completed with area to clean hazardous chemical containers and fertiliser sacks. Liquid waste from cleaning was reused for chemical dilution during spraying. EFB, solid from decanter, and boiler ash were used for fertiliser in Bangun Bandar Estate. Fibre and shell from Bangun Bandar Mill were used for boiler feed. It was observed that organic and inorganic waste was segregated at point of source. Mill and Estate including housing has provided different colour of waste bin for each type of waste. Organic and inorganic wastes from Mill and Estate including housing were disposed to landfill in the Estate area. Disposal to Estate landfill was completed with weighing docket that described location of landfill and quantity of waste disposed. QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
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Audit Report Hazardous wastes were collected, stored and disposed inline with Procedure SOC/PSM/4.11. Temporary storage of hazardous waste was available to collect hazardous waste prior to be disposed to licensed vendor. Temporary storage of hazardous waste still held valid permit from local government (#660/198.2/LH/2009). The hazardous wastes balance was made for each type of hazardous waste: waste oil, waste battery, used fuel and oil filters, and medical waste. Disposal of hazardous waste were performed in coordination with Technical Department in Medan Head Office. Disposal of hazardous waste was completed with manifest. Manifest of disposal were sighted for 2010 period. Minor non-conformance against criterion 5.3 Several inconsistencies of waste management were identified (Estate): o Warning sign board regarding prohibition of waste burning was not provided in the final disposal area of organic and inorganic waste. o During audit fibre waste was burned at site in block 48. o Organic and non organic wastes were mixed in the final disposal area of organic and non organic waste. o Briefing regarding segregation of organic and non organic wastes is not conducted monthly as required. Some inconsistencies of waste management and hazardous material management were identified (Mill): o It was found trace of waste burned at composting project area. o Vehicle/heavy equipment wash bay was not completed with silt and oil trap. o Although boiler chemicals provided with bund wall, some container of chemicals were stored out of bund area. o Inconsistent use of hazardous waste symbol was found in front of general workshop – contaminated rags bin was not completed with hazardous waste symbol. o Waste battery was disposed in February 2011 through PT Bekasi Environmental Service to CV Yudhi Raja Mandiri, however both vendors have no licenses to collect waste battery. o No evidence that vehicle used for transporting waste oil and waste battery from Bangun Bandar on February, 21 2011, BK8227ND, as documented in the disposal manifests ZE005003 and YR000074 has valid permit for hazardous waste transporting. o Hazardous waste balance reported in February 2011 was not complete, only covered waste disposed to third party, but not covered hazardous waste stored and used. Monitoring of quantity and use of boiler burner residue and clay sludge using “economic waste record SOC/Form/4.11-04” was not performed as required by procedure of waste management SOC/PSM/4.11. Volume organic and inorganic waste disposed to landfill using “non-economic waste record SOC/Fom/4.11-0” was not performed individually for each type of waste as required by procedure of waste management SOC/PSM/4.11.
Criterion 5.4 Efficiency of energy use and use of renewable energy is maximised. Fibre and shell was used as boiler feed. Volume of fibre and shell used for boiler feed is estimated monthly. Record sighted for January to April 2011. The quantity fibre generated from the Mill was estimated about 12.5% of FFB processed and shell about 7% of FFB processed. Total energy generated by steam turbine generator for Bangun Bandar Mill was recorded daily and evaluated monthly as total energy (kWH) per ton of CPO produced. Fossil fuel used for Mill activities were recorded in the logistic system. Fossil fuel was used for heavy equipments and emergency diesel generator. Total fuel consumption is summarised monthly as litre of diesel fuel per ton of FFB processed. Record sighted for January to April 2011. QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
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Audit Report The data summary was reported monthly to the management. By the time of audit, it was informed that actually organisation‟ management set internal target for diesel fuel consumption per ton of FFB (as one of efficiency indicator). The fuel consumption reviewed for January to April 2011 still below the set target. Therefore no action plan established. No fossil fuel (diesel fuel) used in the Mill during normal operation.
Criteria 5.5 Use of fire for waste disposal and for preparing land for replanting is avoided except in specific situations, as identified in the ASEAN guidelines or other regional best practice. The organisation has policy of zero burning documented in Ethics Policy SOC/Dp/4.01-64 clause 11, procedure of replanting and circular letter #PD-GM/KS/Bi/470/10. The requirement of zero burning was communicated to contractors who conducted replanting activities. This was documented in attachment #2 of contractual agreement between the organisation and contractor. Replanting was conducted in the early of 2011. Realisation of replanting activities was well documented and reported including activities of chipping, ripping, cleaning ditch, making ditch and total area replanted. Zero burning activity was monitored during HSE inspection. Procedure of responding of land burning emergencies has been established in SOC/DP/4.08-01. The organisational structures emergency response and preparedness were established at Estate. The organisation structure mainly consists of commander, medical team, evacuation team, fire fighting. The responsibilities and authorities of team were defined and documented. Fire extinguisher and the other facilities (e.g. weeds hook, fire beater and water tank) to respond land burning emergencies have been provided. Simulation of land burning emergencies was conducted on 23 February 2011 in Division #2. Result of the simulation has been evaluated. Minor non-conformance against criterion 5.5 Although emergency responses to land burning has been tested/drilled at site however scenario of land burning drill did not refer to procedure of emergency response to land burning. Moreover evaluation of drill against procedure was not accurate. Facilities to respond land burning have been provided at each division however availability and condition of the facilities have not been monitored.
Criterion 5.6 Plans to reduce pollution and emissions, including greenhouse gasses, are developed, implemented and monitored. Identification of pollution and emission sources at Bangun Bandar Mill activities was evident. The source of pollution and type of waste was documented within Identification of Environmental Aspect, SOC/Form/4.04-01. The information of pollution and emission sources at Bangun Bandar Mill was reviewed and updated on March 01, 2011 including boiler emission, methane from Palm Oil Mill Emission, diesel electricity generator and vehicles and heavy equipments. Monitoring of pollution and emission quality of sources identified were performed inline with Environmental Monitoring Plan. In addition, annual monitoring and measuring plan was established. Year 2010 and first semester of 2011 monitoring and measuring reports were sighted for boiler emission against Environment Ministry Decree #07/2007, diesel electricity generator against Environment Ministry Decree #Kep13/Menlh/3/95, vehicle and heavy equipment emission against Environment Ministry Decree #05/2006, odour emission against Environment Ministry Decree #50/Menlh/11/96, ambient noise against Environment Ministry Decree #48/Menlh/11/96, also ambient air quality against Government Regulation #41/1999. Bangun Bandar Mill waste water was processed through a series of waste water treatment ponds. QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
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Audit Report The operation of waste water treatment ponds is described in work guidance SOC/DP/4.11-01. Process parameter monitoring and maintenance of the ponds were sighted. Quality of waste water effluent is monitored monthly in line with the provisions of the Regulation of the Minister of Environment #51 of 1995 by approved laboratory. The results of monitoring of waste water effluent were reviewed including measurement of BOD for period 2010 to first quarter of 2011. The result of discharge effluent conforms to the limits for parameters of the Regulation of the Minister of Environment #51 of 1995. At the time of audit, it was observed that there was project of empty fruit bunch composting. Construction of empty fruit bunch pressing and shredding machine has been already finished and the units have been already operated since end of 2010. The composting bunker is in progress for construction. The project time frame indicated that project to be completed by December 2011. At the completion of the project it was expected that there will be no waste water discharge from Bangun Bandar Mill and methane emission from waste water treatment ponds is eliminated. Minor non-conformance against criterion 5.6 Guidance for operation of waste water treatment ponds SOC/DP/4.11-01 requires monitoring of pH and temperature of anaerobic pond discharge every week, however there was no evidence that this parameter were monitored within SOC/Form/4.11-05.
PRINCIPLES 6: RESPONSIBLE CONSIDERATION OF EMPLOYEES AND INDIVIDUALS AND COMMUNITIES AFFECTED BY GROWERS AND MILLS
Criterion 6.1 Aspects of plantation and mill management including replanting that have social impacts are identified in a participatory way, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continuous improvement. Social impact assessment was conducted by the organisation. Assessment was conducted through PRA (Participatory Rural Appraisal) and involved the local community. And also some interview was conducted with leaders‟ community. This assessment was conducted during period June to September 2010 and January 2011. Scope of assessment covered villages: Bantan, Martebing, Dolok Sagala dan Aras Panjang. Positive impacts were identified, such as: increased income of the village economy ease of road access Negative impacts were identified, such as: ash and smell from the mill Action plan to implement and monitor social impact with community has been determined. Positive impacts were maintained with organisation and necessary action was planned by the organization. And negative impacts (ash and smell) were followed up with corrective action. According to public interview, they explained that ash and smell was reduced.
Criterion 6.2 There are open and transparent methods for communication and consultation between growers and/or millers, local communities and other affected or interested parties. Procedure for communication and consultation with public was determined in the SOC/PSM/9.01. Stage of communication and consultation with public was described in the procedure and it was socialized to stake holder. RSPO Officer/Estate Manger was responsible to coordinate communication and consultation. Result of communication and consultation was recorded in the QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
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Audit Report „log book‟. Stakeholder list was made and mentioned interested party. Stakeholder list covered head of villages, head of district, Forestry and Plantation Agency, Environmental Agency, National Land Agency (BPN), and NGO. Community aspirations were kept and recorded by the RSPO Officer, e.g. road maintenance, donation, scholarship. Records and interview result indicated that aspiration from community was followed up by the organisation. In general, interview result indicated that the communication between local society and Estate was evident, although Bantan Village commented that respond time from Estate was slow, referred to requesting of repairing of Al-Taufik Mosque. Interview result with farmer group was concluded that the prices paid for FFB was transparent and complied with agreement. Mil has same perception during FFB receiving. Payment is conducted based on agreed schedule every three days.
Criterion 6.3 There is a mutually agreed and documented system for dealing with complaints and grievances, which is implemented and accepted by all parties Procedure for complaints and grievances was determined and agreed by related parties (head of villages). And procedure was made without compulsion from other interest parties. The procedure was described in the documented procedure SOC/PSM/9.05-9.06. Socialize for procedure was evident and documented. There were no complaints from related parties
Criterion 6.4 Any negotiations concerning compensation for loss of legal or customary rights are dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their view through their own representative institutions. Compensation and calculation identification pertinent for loss legal or customary rights was determined in the procedure – SOC/SPM/9.05. It was noted that there was no acquire any new land
Criterion 6.5 Pay and condition for employees and for employees of contractors always meet at least legal or industry minimum standards and are sufficient to provide decent living wages Documentation of employees‟ pay rates was made by the organization. Workers were classified into daily employees (Karyawan Harian Tetap (KHT)), monthly employee (pegawai bulanan) and staff. Evidence that the workers have received wage according regulation could be shown. Wages payment refers to North Sumatera Governor‟s Decree Letter 188.44/674/KPTS/2010 and Worker Union Federation (SK-Gubernur Sumatera Utara 188.44/674/KPTS/2010 and Federasi Serikat Pekerja). Payments for workers were determined according daily absence. Daily absence for workers was recorded and controlled by the Foreman. It was evident that the wage was paid according working hours and daily absence. According to interview result with worker, it was assumed that wage received by the workers was complied with the determined regulations. QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
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Audit Report Beside of wages, worker also receives „rice‟ that was distributed twice a month. This was mentioned in the “Joint Working Agreement” (PKB) year 2010 between employees and the organisation. Some of contractors were used by the organisation such as land clearing by Agriculture Department and civil work by the Technical Department. Working agreement with contractor could be shown however the working agreement did not require that the contractors abide by labour laws. All employees and subcontractor have been registered with Social Security, and turnover data are reported periodically to the Department of Labour. Public facilities were provided by the organisation and covered residential facilities, day care, education, clean water. Clean water was provided by the organization at several areas and the workers may take the clean water from these areas. Housing was provided for all workers. Agreement of approval for staying in the housing was made for workers. Housing for workers was provided by the organisation with facility: 2 bed rooms, 1living room and 1 bathroom. Minor nonconformity against Criterion 6.5 Some facilities at the clinic located in division #3 needs to be improved: o Nurses and or officer not presence every day at clinic. o Some of materials which not relevant with clinic were stored under bed. o Bed for take a rest women workers was not provided. Working agreement with contractors did not require that the contractors abide by labour laws, e.g. land clearing – CV Surya Baru and civil work – CV. Cikini Raya.
Criterion 6.6 The employer respects the right of all personnel to form and join trade unions of their choice and to bargain collectively. Where the right to freedom of association and collective bargaining are restricted under law, the employer facilitates parallel means of independent and free association and bargaining for all such personnel. A published statement in local languages recognizing freedom of association was stated in the “Ethics Policy” – SOC/DP/4.01-64 (Kebijakan Etika –SOC/DP/4.01-64) and approved by the top management. Memorandum stated that the organisation respect to comply with regulation pertinent to freedom of association. Also PKB stated that freedom of association can be conducted by the worker through Labour Union. “Indonesian Worker Union” (Serikat Pekerja Seluruh Indonesia (SPSI)) was established for Mill and Estate. Worker representative was available and they conduct a communication with the Labour Union at Head Office Medan. Labour Union for Bangun Bandar Mill and Estate was established. The organisation of Labour Union covered Chairman/Vice and Secretary PKB was established and agreed between workers and organisation. Minor nonconformity against Criterion 6.6 . Meeting with Labour Union was conducted, however it was not recorded. Criterion 6.7 Children are not employed or exploited. Work by children is acceptable on family farms, under adult supervision, and when not interfering with education programmes. Children are not exposed to hazardous working conditions. QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
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Audit Report Organisation has policy for minimum age for worker and mentioned in the “Ethics Policy” and the PKB. List of worker and related document was verified and there is no worker under 18 years old. List of worker and related document was verified and there was no worker under 18 years old. According to observation result in Mill and Estate, there was no worker under 18 years old Organisation using „family harvesting‟ during harvesting, names of family members that involved during harvesting were identified. It was evidence that family members are aged more than 18 years old.
Criterion 6.8 Any form of discrimination based on race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliation, or age, is prohibited. Policy for against discrimination was determined by the organisation. All discriminations are prohibited for all area in Mill and Estate. PKB also mentioned ban of discrimination for all worker in the organisation. Worker list of Mill and Estate mentioned that all workers came from different back grounds (race, religion, gender).
Criterion 6.9 A policy to prevent sexual harassment and all other forms of violence against women and to protect their reproductive rights is developed and applied. Policy for sexual harassment and violence was determined in the “Ethics Policy” and PKB. Gender committee was established by the organisation. The committee has representatives from all areas of work. The committee consider matters such as; trainings on women‟s rights, counselling for women affected by violence, child care facilities to be provided by the growers and millers, women to be allowed to breastfeed up to nine months before resuming chemical spraying or usage tasks, and women to be given specific break times to enable effective breastfeeding. Complaint handling procedure for sexual harassment was determined. All complaints can be issued verbal and or written and informed to all administrator, gender committee and Mill/Estate Manager. The organisation stated that there was no sexual harassment and violence
Criterion 6.10 Growers and mills deal fairly and transparently with smallholders and other local business. Pricing mechanisms for FFB was described in procedure SOC-POM/PSM/7.05. Price calculation of FFB is responsibility of Technology Sub Department and the price was set based on Crude Palm Oil price, cost of transport from Mill to Belawan Tank Installation, actual FFB specification supplied during previous period by the supplier, and processing cost at the Mill. Annual contract were made between FFB suppliers and PT. Socfin Indonesia, describing FFB specification required, contract period, determination of FFB pricing, and term of payment. Information of FFB set was available to the FFB suppliers and the commitment was stated in the procedure. The FFB price set was sent to Bangun Bandar Mill. It was evident that price set was consistently used as recorded in the record of FFB receiving. The payment of FFB received were planned and executed in timely manner inline with term of payment agreed within the contract. Pricing mechanism for other inputs and or services was described in the procedure SOP/PSM/7.04 clauses 5.2.1.2 to 5.2.2.4. The selection and evaluation of supplier/vendor was based on capability QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
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Audit Report of supplier and vendor to supply required inputs and or services. Specification of inputs and or services required was communicated to the supplier/vendor through tender document or request for quotation. Contractual agreement was signed by both parties, including specification and work requirements agreed. Procedure SOC/PSM/7/07 was established and implemented for payment of suppliers and vendors. It was observed that payment was made consistent with term of payment stated in each contract or purchase order.
Criterion 6.11 Growers and millers contribute to local sustainable development wherever appropriate. Records of organisation contribution to regional development was evident, among other levied in region, agreement contract, and social assitance list. Some of activities were conducted by the local contractors such as building houses, road maintenance (road hardening). Public comments are welcome for CSR program and their requesting included in annually CSR program.
PRINCIPLES 7: RESPONSIBLE DEVELOPMENT OF NEW PLANTINGS
A procedure regarding responsible development of new plantings is in place (Document SOC/PSM/9.04). Bangun Bandar is a very old plantation, and therefore only replanting of Oil Palm and conversion from the companies‟ Rubber Plantation into Oil Palm (within the same concession / licence area) is practiced here. No Primary Forest of HCV area has been present since long time, as this plantation was established during the Dutch period in the beginning of the 20th century. Since then, only implantable swamps consisting of bushes and shrubs, and riparian zones planted with oil palms remained, and these have all been identified as HCV areas. No other HCV areas or forests were present here between November 2005 and November 2007.
PRINCIPLES 8: COMMITMENT TO CONTINUOUS IMPROVEMENT IN KEY AREAS OF ACTIVITY
Criterion 8.1 Growers and miller regularly monitor and review their activities and develop and implement action plans that allow demonstrable continuous improvement in key operations It was sighted that several rounds of internal audits were performed to Bangun Bandar Mill. Internal audit of integrated management system was performed as one of the requirements of ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007. Currently the implementation of management system audit was also covered requirements of RSPO Principles and Criteria, as described in the internal audit procedure, SOC/PSM/8.02. The internal audit of management system and RSPO requirements is programmed and performed annually under coordination of Medan Head Office. Negative findings identified were followed up by issuance of corrective action request. The corrective actions made were verified for its effectiveness. Last internal audit of integrated management system was performed in March 2011. Other round audit performed for monitoring of Mill activities were conducted through operation internal audit for ensuring compliance and efficiency. The findings made were mandatory to be responded by the Bangun Bandar Mill and reported to Top Management. The report and its response were submitted to top management, i.e. 2010 and 2011 reports. The overall performance of management systems and RSPO requirements were brought to the attention of top management through management review processes, as required by procedure QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
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Audit Report SOC/PSM/5.01. The inputs of the review were result of internal audit of management systems, result of evaluation of compliance against applicable legal and other requirements, customer feedback, quality performance, environmental performance, occupational health and safety performance, complaint from stakeholder, external communication, status of corrective and preventive action, opportunity for improvements and any changes applied to management systems. The output of the reviews was decision made for continual improvements. The last management review was performed on January 15, 2011. Under requirements of management system Bangun Bandar Mill has established annual quality, environmental and occupational health and safety objective, target and programs. The target established include quality of Crude Palm Oil and Palm Kernel, compliance with air emission legal requirements, compliance with waste water quality discharged legal requirements and zero incident/accident level. Bangun Bandar Mill and Estate has also established Continual Improvement Plan and Realisation report which described continual improvement project already executed until 2010 and those which plan to be conducted for 2011 until 2012. Several projects have been executed until 2010 at Bangun Bandar Mill including installation of empty bunch press to reduce oil loss, also installation of boiler ash hopper and conveyor and provision of closed container for boiler ash. Previously the Mill managed their boiler ash using wet ash catcher but not effective and has poor effect in the housekeeping. Bangun Bandar Mill also has installed multi-cyclone dust collector for improving quality of boiler emission. Empty fruit bunch was not used as boiler feed anymore but instead sent to estate as organic fertiliser since 2007. It was noted there was a good program to reduce the use of highly toxic substance (paraquat). As mentioned earlier in this report, it was also observed that project for composting is in progress. Construction of composting facilities is located next to waste water treatment ponds and target to be completed by December 2011. There were also plan to reduce clay-batch sludge by August 2011. Opportunity for improvement: It is recommended to establish audit check list to cover all RSPO indicators, for ensuring minimum requirement of National Interpretation Principle and Criteria RSPO were covered during internal audit.
Mill Supply Chain Certification Requirements Bangun Bandar Mill received FFB from its own Bangun Bandar Estate and from the third party supply base. All of the FFBs are processed under the same facilities; therefore the supply chain model that can be applied is Mass Balance (MB) model. 1. Documented procedure Bangun Bandar Mill has established and documented written procedure regarding to the implementation of RSPO Supply Chain Certification System (RSPO SCCS). It describes on “Mechanism of Recording and Monitoring of Sustainable Palm Oil (SPO) Balance in POM PT Socfindo” as well as the procedures mentioned on criteria 4.1 above which is integrated with the Quality Management System ISO 9001:2008. The procedure describes the implementation of all the elements of RSPO SCCS. In general, from the records reviewed (April – May 2011) found that compliance to the RSPO SCCS has been demonstrated. The person having overall responsibility for and authority over the implementation of RSPO SCCS has been assigned (Mr. Frans Tambunan). Non-conformance against requirements 1 SCCS: QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
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Audit Report
Documented procedure related to SCCS has been established (“Mechanism of Recording and Monitoring of Sustainable Palm Oil (SPO) Balance in POM PT Socfindo”); however it has not been registered and controlled as required. Procedure of daily reporting when Harvest System down has not been formally documented.
2. Purchasing and goods in The requirements were not applied for the purchase and delivery of RSPO certified palm oil and palm oil products. However it was verified whether Bangun Bandar Mill has clear system for recording fresh fruit bunch received from certifiable supply base and non certifiable supply base. It was verified that receiving of fresh fruit bunch was traceable to the supply base unit. Weighing slip and receiving report issued clearly stated weight off fresh fruit bunch receive and its source. 3. Sales and goods out As mentioned previously before on above page, Bangun Bandar Mill‟s CPO are delivered to FRF of PT. Socfin Indonesia Tanah Gambus and local market and palm kernel is delivered to PKOF of PT. Socfin Indonesia Tanah Gambus and local market as well. Delivery of CPO and palm kernel is conducted according to DO sent from sales in Medan Head Office. In general, records reviewed found that this activity has been done appropriately as described by internal procedure. Records of delivery have been well conducted and reviewed during audit. 4. Processing Supply chain model is Mass Balance since the Mill processes FFB from third party that has not been RSPO certified. See description above. 5. Record keeping A review to the records and related documentation of the implementation of the SCCS found that accurate, complete and up to date records and report has been maintained by Bangun Bandar Mill. The records and reports are easily accessible both in hard copy and soft copy. Retention time for these records and reports has been determined (5 years). Balance among all FFB, CPO and palm kernel receipts, produced and delivered are conducted in daily basis. The record has been well maintained. Non-conformance against requirements 5 SCCS: Production Daily Report from POM has not been kept in a specified arrangement. Opportunity for improvement While the retention time has been determined; consider to specifying the filing system (particularly for manual report) at POM. 6. Training Qualification of personnel for each job function have been defined and documented within Personnel Qualification, SOC/Form/6.02-05, including training requirements necessary for Supply Chain. Procedure SOC/PSM/6.02 was established and implemented for identifying training needs, programming training, delivering training, and evaluating effectiveness of training. Training for Supply Chain requirements have been delivered to personnel in Medan Head Office, as well as personnel in Bangun Bandar Mill. It was sighted that training records were made including training material, training attendance and individual training record. Individual training record, SOC/Form/6.02-03, for personnel in relation to implementation of Supply Chain requirements was sighted, e.g. Mill Manager, Mill Assistant Manager, and Production Supervisor. Non-conformance against requirements 6 SCCS: SCCS training has not been given for Expedition personnel and “Krani Timbang”. QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
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Audit Report 7. Claim Claim has not been applied while the system has been prepared.
3.2
Recommendation
The recommendation from this audit is approval as a producer of RSPO Certified Sustainable Palm and Palm Kernel. Audit recommendations are always subject to ratification by RSPO. This report was prepared by: Ria Gloria, Inge Triwulandari, Sigit Yulianto, Fadjar Deniswara and Irawan Bawono
3.3 Acknowledgement of Internal Responsibility and Formal Sign-off of Assessment Findings Please sign below to acknowledge receipt of the assessment visit described in this report and confirm the acceptance of the assessment report contents including assessment findings. Signed for and on behalf of PT. Socfin Indonesia
Mr. Hasan Bisri Head of System Management and Social Department Date 23 May 2011
Signed for and on behalf of PT. SAI Global Indonesia
Mr. Joko Prayitno Certification Manager Date 23 May 2011
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Audit Report Appendix “A” – Audit Record Audit Team Leader: Ria Gloria Auditors: Inge Triwulandari, Sigit Yulianto, Fadjar Deniswara, Irawan Bawono Observers/Technical Specialist: Resit Sözer Day
Auditor
10.05.2011
Audit meetings plus functions/ processes/ areas/ *shifts audited: Medan Head Office
Ria
Ria
Inge Inge Inge Irawan Irawan Irawan Sigit
Sigit
Denis
Denis
Agriculture Department: Principle 4: Criterion 4.2, 4.3, 4.4, 4.5, 4.6 Principle 5: Criterion 5.5 Principle 8: Criterion 8.1 (monitoring and continual improvement plan Estate) Technology sub. Department Principle 1: Criterion 1.2 (AMDAL, RKL RPL, reporting of RKL RPL) Principle 5: Criterion 5.1 Technology sub. Department: Principle 6: Criterion 6.10 Principle 8: Criterion 8.1 (monitoring and continual improvement plan Mil) Purchasing Department: SCCS General Department: SCCS Training Technology sub. Department: SCCS Sales Department: SCCS IT Department: SCCS General Department: Principle 1: Criterion 1.2 (HGU) Technical sub. Department: Principle 4: Criterion 4.8 Principle 3: Criterion 3.1 Principle 8: Criterion 8.1 (monitoring and continual improvement plan OHS) Secretariat: Principle 1: Criterion 1.2 (Social document) Principle 6: Criterion 6.11 General Department: Principle 6: Criterion 6.5, 6.6, 6.7, 6.8, 6.9 Principle 8: Criterion 8.1 (monitoring and continual improvement plan social) Day 3 – Bangun Bandar
11.05.2011 Ria, Inge, Denis, Sigit, Irawan
Ria
Opening meeting Bangun Bandar Estate Document review and site visit: Principle 2: Criterion 2.1 (evaluation of compliance with Estate regulation) Principle 4: Criterion 4.1, 4.2, 4.3, 4.4, 4.5, 4.6 Principle 5: Criterion 5.1, 5.3, 5.4, 5.5 Principle 7 Principle 8: Criterion 8.1 (monitoring and continual improvement plan Estate)
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Audit Report
Day
Auditor Irawan
Irawan
Sigit
Denis
Denis 12.05.2011
Audit meetings plus functions/ processes/ areas/ *shifts audited: Bangun Bandar Mill Document review: Principle 2: Criterion 2.1 (evaluation of compliance with Mill regulation) Principle 8: Criterion 8.1 (monitoring and continual improvement plan Mill) SCCS Bangun Bandar Mill Document review: SCCS Bangun Bandar Mill Document review and site visit: Principle 1: Criterion 1.2 (OHS, HGU & Ijin Perkebunan and record) Principle 2: Criterion 2.1 (evaluation of compliance with OHS regulation), 2.2 (HGU and demarcation boundaries) Principle 3: Criterion 3.1 Principle 4: Criterion 4.7, 4.8 Principle 8: Criterion 8.1 (monitoring and continual improvement plan OHS) Bangun Bandar Mill and Estate Document review: Principle 1: Criterion 1.1, 1.2 (Social document and record) Principle 2: Criterion 2.1 (evaluation of compliance with Social regulation), 2.2 (area conflict), 2.3 Principle 6: Criterion 6.1, 6.2, 6.3, 6.4, 6.5, 6.6, 6.7, 6.8, 6.9, 6.11 Principle 8: Criterion 8.1 (monitoring and continual improvement plan social) Bangun Bandar Mill and Estate Interview with labour union Interview with employees of Mill and Estate Bangun Bandar Mill
Ria, Resit
Inge
Irawan
Sigit Denis Denis
Bangun Bandar Estate Document review and site visit: Principle 5: Criterion 5.2 Bangun Bandar Mill Document review and site visit: Principle 4: Criterion 4.4 Principle 5: Criterion 5.1, 5.3, 5.4, 5.6 Bangun Bandar Mill Document review and site visit: Principle 4: Criterion 4.1 Bangun Bandar Estate Document review and site visit: Principle 4: Criterion 4.7, 4.8 Bangun Bandar Mill and Estate Site visit for Estate facility Interview with local community: Kepala Desa Kerapuh, Kepala Desa Bantan, and Kelompok Tani
Ria, Inge, Denis, Sigit, Irawan, Resit
Auditor review
Ria, Inge, Denis, Sigit, Irawan, Resit
Closing meeting
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Audit Report
Day
Auditor
16.05.2011
Audit meetings plus functions/ processes/ areas/ *shifts audited: Medan Head Office
Ria, Inge, Denis, Sigit, Irawan, Resit
Closing meeting
All applicable requirements of relevant standards are covered during the audit of the „Functions/Processes/Areas. * Enter shift details only where applicable.
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Audit Report Appendix “B” – Nonconformities, Corrective Actions and Observations Summary
Minor Non-conformances - RSPO
No 1
RSPO Criterion 2.1
Details No flow meter installed for measuring river water abstraction, and flow meter used for measuring consumption of ground water has not been functioned since September 2010. It was informed that local authority has approved the estimation of river water consumption by using ratio of total FFB processed monthly. However no documented statement from the local authorities regarding this matter, although that calculation of the retribution and retribution payments were sighted.
Corrective Action
Flow meter for measuring river water Technical abstraction will be installed and flow meter used for measuring consumption of ground water will be repaired.
Several law and regulations have not been included in evaluation of compliance with law and regulations performed in March 2011, e.g. ground water abstractions permit, river management against Government Regulation #35/1991 and limited pesticide use baded on Ministry of Agriculture Decree #7/permentan/sr.140/2/2007.
2
4.1
PIC
Completion Date July 2011
Compliance with law and regulations, e.g. ground water abstractions permit, river management against Government Regulation #35/1991 and limited pesticide use baded on Ministry of Agriculture Decree #7/permentan/sr.140/2/2007 will be evaluated in the next period. The gaps will be completed with action plan. The result of evaluation of compliance with Compliance with regulation Act No. regulation Act No. 3/1992 in regards employee 3/1992 will be re-evaluated. The gaps will social benefit was reported complied to. In fact not be completed with action plan. all requirements have been complied, e.g. in regard to employee social benefit for non permanent employees.
Mill, Estate, ISO Secretariat
July 2011
Estate, ISO Secretariat
July 2011
It was observed during site observation that the Record of Rototherm chart will be
Technical
May 2011
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Audit Report recording of sterilization was not conducted as improved. Identity and date will be actual condition. The steam sterilizer #2 was down provided in the chart. however it was not recorded on Rototherm report. Working Instruction for “Sounding” has not been Establish work instruction for “Sounding” established.
Mill/ISO Secretariat
August 2011
Sounding reporting was not conducted in Revise recording of sounding appropriate manner. Only one sounding record is reported on the daily report.
Mill
August 2011
Thermometer used for sounding has not been Thermometer used for sounding will be calibrated. calibrated.
Technical
May 2011
Water analysis is done with not appropriate Analysis of water treatment will be equipment. There was no scale on the pipe used completed with burette. for titration of water alkalinity.
Technical
August 2011
3
4.2
Last soil analysis was reported in February 2007. Soil at all blocks will be analysed at the Report mentioned that not all divisions were next period. Criteria and location of analysed. Criteria of soil analysed and location sampling will be mentioned in the report. coverage of sampling point was not clear.
Agriculture Department
2012
4
4.3
The peat area was not identified as HCV area as it has been developed for alonger period of time already, and the area was not mentioned in the HCV report. No best management practices for peat conservation are applied for the area. No piezo metes have been applied.
Estate/ISO Secretariat
September 2011
Found not well maintained of several parts of road Broken road will be maintained according for transportation by vehicle and workers which to program of road maintenance. normally using motorcycle.
Assistant
July 2011
Quality of Martebing and Belutu Water River is Analysis result of quality of Martebing and being analysed by Laboratory of North Sumatera Belutu River has been finished. District Environmental Agency. Water sample was
Technological Department
May 2011
5
4.4
QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
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Peat area in block 68 will be included in HCV assessement report and will be managed according to procedure of peat soil management including application of piezo meter.
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Audit Report sent to the Laboratory on 13 April 2011. Result of analysis has not been finished yet by the Laboratory.
6
4.5
No evidence of measurement of daily ground Ground water abstraction as well as river water abstraction as well as river water, as water will be measured as required by required by procedure water management procedure SOC/PSM/4.22. Currently flow meter exists and functioned only for Boiler feed-water. The flow meter exists for measuring ground water consumption has not been functioned since end of September 2010.
Technical
June 2011
Monthly monitoring data of Mill water consumption Water consumption per ton of FFB will be per ton of FFB was not accurate (January 2010 to measured in accurate. April 2011), e.g. water used for Mill was actually from ground water, but data reported was from river water.
Technical
June 2011
BOD of effluent is required to be monitored BOD of effluent is monitored consistently monthly. However result of BOD monitoring of monthly. waste water treatment ponds effluent in March 2010 and December 2010 could not be found during audit.
Technical
May 2011
There was no monitoring extent of IPM Extent of IPM implementation regarding implementation regarding growth and length of growth and length of beneficial plants will beneficial plants. be monitored.
Assistant
July 2011
Training of IPM implementation has been All assistants will be trained regarding conducted to one of four assistant and foremen. It IPM. was noted that the assistant was moved to other Estate. The three other assistants have not been trained regarding IPM implementation.
Agriculture Department
August 2011
There was no monitoring of pesticide toxicity units Pesticide toxicity units will be monitored (a.i. active ingredient / LD50 per tonne of FFB or
Estate/Agriculture June 2011 Department
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Audit Report per hectare). 7
8
4.6
4.7
Agro chemical solution carried out to site was not Agro chemical solution carried out to site completed with information of hazard nature of will be completed with information of agro chemical. hazard nature of agro chemical.
Assistant
May 2011
Decis 25 EC with active ingredient Delta metrin Decis 25 EC will be registered in the list of was used within organisation. The agro chemical pesticide used within organisation has had license from Department of Agriculture however the agro chemical has not been registered in the list of pesticide used within organisation.
Assistant
May 2011
The first aid kit was not available at harvesting First aid kit in foreman will be checked. activity (Foreman Mr. Junadi) and at the pile First aid kit will be changed when broken, construction of composting project by contractor. not complete and is not provided in foreman.
Assistant
July 2011
It was found non-permanent employees working Check to all workers regarding the for loading FFB to truck without worn PPE completeness of PPE and complete if considering the risk. necessary.
Mill and Estate
August 2011
Work instruction for harvesting did not mention Revise work instruction for harvesting with requirement on OHS, e.g. the requirement for the requirement on OHS, e.g. the using complete PPE. requirement for using complete PPE.
ISO Secretariat
August 2011
The vertical stair to access water torn was not Provide vertical stair with cover to fall provided with cover for fall prevention. prevention.
Technical
August 2011
The housekeeping of pump house for waste water Pump house has been cleaned. Clean the treatment was very poor. pump house regularly.
Technical
May 2011
Found several poor conditions of electricity, e.g. at pump house of WWTP, most electrical panel with electrical hazard were accessible by un- authorized persons. QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
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August 2011
Audit Report Noise hazard at mill was not well controlled, e.g. most workers did not wear hearing protection.
9
4.8
Inventory completeness of ear muff Technical according to number of workers and complete if necessary. Improve awareness to all workers regarding the importance of ear muff use. Warn to worker who not use ear muff. In the area of workshop, found oil jerry can without Complete oil jerry can with identification of Mill any identification of content and hazard symbol. content and hazard symbol.
August 2011
Last inspection and test of hoisting crane was on Inspect and test hoisting crane this year. 2008. Inspection and test must be conducted every 1 year.
Mill
May 2011
The cleaning CPO tank just been recently Clean the CPO tank according to confined performed in April 2011. However, the confined space procedure. space entry guideline including safe work permit was not implemented.
Mill
2012
The schedule for exercising of emergency plans Develop schedule for exercising of for 2011 has not been issued. emergency plans.
General Department
May 2011
Accident insurance scheme for non-permanent Insurance all non-permanent employees. employees has not been established and provided.
Estate Manager
September 2011
The existing training requirements stated in Include training related to HCV and social personnel qualification does not consist of training issues to qualification personnel. related to HCV and social issues.
General Department
August 2011
Training plan for 2011 has not been established. It was noted that some employees have not completely follow the training stated in personnel qualification e.g. Spraying Supervisor and Processing Supervisor.
General Department
May and December 2011
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Training plan 2011 is being reviewed and will be issues soon. Train the employees who have not obtained the required training.
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May 2011
Audit Report 10
11
5.2
5.3
Monitoring of nuisance to HCV area was Monitor the nuisance to HCV area conducted once in February 2011. Monitoring plan monthly. mentioned that monitoring of nuisance to HCV area is conducted monthly.
Assistant
June 2011
Availability and condition of HCV 6 regarding Monitor availability and condition of HCV 6 public cemetery was not monitored. routine.
Assistant
June 2011
Several inconsistencies of waste management were identified (Estate): Warning sign board regarding prohibition of waste burning was not provided in the final disposal area of organic and inorganic waste. During audit fibre waste was burned at site in block 48. Organic and non organic wastes were mixed in the final disposal area of organic and non organic waste. Briefing regarding segregation of organic and non organic wastes is not conducted monthly as required.
Complete warning sign board regarding prohibition of waste burning in the final disposal area of organic and inorganic waste. Complete warning sign board regarding prohibition of waste burning and inform that fibre is flammable. Routine briefing regarding waste segregation.
Assistant
June 2011
Briefing to contractor of composting project regarding prohibition of burning. Complete vehicle/heavy equipment wash bay with silt and oil trap. Provide secondary containment for all boiler chemicals. Provide hazard symbol in hazardous substance and waste storage. Provide license of waste battery collector, PT Bekasi Environmental Service dan CV Yudhi Raja Mandiri.
Some inconsistencies of waste management and hazardous material management were identified (Mill): It was found trace of waste burned at composting project area. Vehicle/heavy equipment wash bay was not completed with silt and oil trap. Although boiler chemicals provided with bund wall, some container of chemicals were stored out of bund area. Inconsistent use of hazardous waste symbol was found in front of general QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
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Mill Technological Department
May 2011 June 2011 May 2011 May 2011 September 2011 September 2011 June 2011
Audit Report
workshop – contaminated rags bin was not completed with hazardous waste symbol. Waste battery was disposed in February 2011 through PT Bekasi Environmental Service to CV Yudhi Raja Mandiri, however both vendors have no licenses to collect waste battery. No evidence that vehicle used for transporting waste oil and waste battery from Bangun Bandar on February, 21 2011, BK8227ND, as documented in the disposal manifests ZE005003 and YR000074 has valid permit for hazardous waste transporting. Hazardous waste balance reported in February 2011 was not complete, only covered waste disposed to third party, but not covered hazardous waste stored and used.
Monitoring of quantity and use of boiler burner residue and clay sludge using “economic waste record SOC/Form/4.11-04” was not performed as required by procedure of waste management SOC/PSM/4.11.
12
5.5
Change the collector if the above collector cannot show the license. Extent the license of hazardous waste transportation. Record hazardous waste balance for hazardous waste stored and used, not only waste disposed to the third party
Record quantity and use of boiler burner residue and clay sludge in “economic waste record SOC/Form/4.11-04” as required by procedure of waste management SOC/PSM/4.11.
Mill
July 2011
Volume organic and inorganic waste disposed to Separate recording of volume of organic landfill using “non-economic waste record and inorganic waste disposed to landfill. SOC/Fom/4.11-0” was not performed individually for each type of waste as required by procedure of waste management SOC/PSM/4.11.
Mill
July 2011
Although emergency responses to land burning Evaluate the procedure therefore the has been tested/drilled at site however scenario of procedure can implement in Estate. land burning drill did not refer to procedure of emergency response to land burning. Moreover evaluation of drill against procedure was not
Estate
August 2011
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Audit Report accurate.
13
5.6
14
6.5
15
6.6
Facilities to respond land burning have been Inspect condition of all facilities to respond provided at each division however availability and land burning. condition of the facilities have not been monitored.
Assistant
June 2011
Guidance for operation of waste water treatment ponds SOC/DP/4.11-01 requires monitoring of pH and temperature of anaerobic pond discharge every week, however there was no evidence that this parameter were monitored within SOC/Form/4.11-05. Some facilities at the clinic located in division #3 needs to be improved: Nurses and or officer not presence every day at clinic. Some of materials which not relevant with clinic were stored under bed. Bed for take a rest women workers was not provided.
DP SOC/DP/4.11-01 has been revised to amend frequency of monitoring of pH and temperature monthly. Monitor pH and temperature monthly in SOC/Form/4.1105.
ISO Secretariat
May 2011
Improve condition of clinic in Division #3: Provide nurses and or officer every day at clinic. Clean clinic from some of materials which not relevant with clinic. Provide bed for take a rest women worker.
Assistant
August 2011
Working agreement with contractors did not Contract agreement with contractors has require that the contractors abide by labour laws, mentioned requirements of labour laws. e.g. land clearing – CV Surya Baru and civil work – CV. Cikini Raya.
Agriculture Department
May 2011
Meeting with Labour Union was conducted, Record result of meeting with Labour however it was not recorded. Union.
Administration
May 2011
Non-conformances - SCCS No 1
SCCS Details Corrective Action PIC Requirements 1 Documented procedure related to SCCS has Control the document “Mechanism of ISO Secretariat been established (“Mechanism of Recording and Recording and Monitoring of Sustainable
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Completion Date August 2011
Audit Report Monitoring of Sustainable Palm Oil (SPO) Palm Oil (SPO) Balance in POM PT Balance in POM PT Socfindo”); however it has Socfindo”. not been registered and controlled as required. Procedure of daily reporting when Harvest Establish procedure of daily reporting System down has not been formally when Harvest System down. documented.
ISO Secretariat
August 2011
2
5
Production Daily Report from POM has not been Arrange production daily report from POM. kept in a specified arrangement.
Mill/ISO Secretariat
August 2011
3
6
SCCS training has not been given for Expedition Train the SCCS to Expedition personnel personnel and Weighbridge operator. and “Krani Timbang”
ISO Secretariat
July 2011
Opportunities for improvement - RSPO 1. 1.2 Opportunity for Improvement: It could be considered using forms that required in the procedure SOP/PSM/9.01 for information and respond from stakeholder although information request was followed up with respond. It could be considered to evaluate CSR programs that were conducted by mill and estate. It is needed to review effectively of CSR program from mill and estate. It could be considered to improve understanding from employees by conducting socialisation of CSR programs and related RSPO procedure to all personnel at Mill and Estate. Based on the interview result, some of employee and staff did not fully understand RSPO procedures and CSR programs. 2. 4.5 Opportunity for improvement: Although IPM techniques regarding rodent has been developed in the circular letter, it could be considered to establish the IPM techniques in the documentation system. 3. 4.6 Opportunity for improvement: It could be considered to improve transportation system of agro chemical solution from division warehouse to site, e.g. by layering with plastic on the transportation unit to prevent agro chemical spill during transportation. It could be considered to improve record of paraquat consumption, e.g. report the percentage of target consumption. QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
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Audit Report 4. 8.1 Opportunity for improvement: It is recommended to establish audit check list to cover all RSPO indicators, for ensuring minimum requirement of National Interpretation Principle and Criteria RSPO were covered during internal audit. Opportunities for improvement - SCCS 5. 5 Opportunity for Improvement: It could be considered using forms that required in the procedure SOP/PSM/9.01 for information and respond from stakeholder although information request was followed up with respond.
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Audit Report Appendix “C” – Stakeholder‟s issues and comment
Date and Time : 12 May 2011 at 14.00 pm – 16.00 pm Location : Bangun Bandar Estate and Mill Interviewee : Ramayana (sprayer), Sawaliyati (fertilising worker), Daniel Saragih and Suaryadi (Harvester)
Status of workers was determined in the employment contract, and also mentions wage and working hours for workers. Calculation of wage and overtime was determined by management Above personnel were worked in the organisation more than 2 years. Started work at 6.30 am to 02.00 pm. Wage was paid according employment contract and paid on time (twice/week) Rice for his/her family was distributed every month Organisation provided training for Occupational Health and Safety, personnel protective equipments were provided by organisation. Above personnel said there are no complaints to organisation related to wage and labor regulations Housing, clean water and electricity provided by the organisation.
Date and Time : 12 May 2011 at 10.00 am -12.00 am Location : Bangun Bandar Estate and Mill Interviewee : Ishak Iswamto (Bantan Village Head), Masna (Bantan Village Secretary), Kamin (Kerapuh Village Secretary), Sri Wahyuni (Government Supervisor), Budi (Farmer group „Yakin‟)
All gentlemen were lived around the estate is more than 10 years. Request for rental of heavy equipment for road repairs very quickly responded by estate. School building repaired without being asked by the community. Textbox donated periodically to school around garden For religious activities, social and general repairs facilities, estate parties request to be involved.
QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
© SAI Global Indonesia Copyright 2009
Page 57 of 58
Audit Report Appendix D: - Definition of, and action required with respect to audit findings: Major Nonconformities occur when system is failing to meet a relevant compulsory indicator. Action required: This category of findings requires SAI Global to issue a formal NCR; to receive and approve client‟s proposed correction and corrective action plans; and formally verify the effective implementation of planned corrections and corrective action. Correction and corrective action plan must be submitted to SAI Global for approval within 14 days of the audit. Follow-up action by SAI Global must „close out‟ the NCR or reduce it to a lesser category within 90 days or less where specified. Certificate of conformance to the RSPO Criteria cannot be issued while any major nonconformity is outstanding. Major nonconformities raised during surveillance audit shall be addressed within 60 days, or the certificate will be suspended. Major nonconformities not addressed within a further 60 days will result in the certificate being withdrawn. Minor Nonconformities occur when system is failing to meet other indicators. Action required: This category of findings requires SAI Global to issue a formal NCR; to receive and approve client‟s proposed correction and corrective action plans; and formally verify the effective implementation of planned corrections and corrective action. In this instance, a certificate may still be awarded providing the root cause of the problem is identified and an acceptable plan is put in place to achieve the outstanding requirements in an agreed time frame. Verification will be made at subsequent surveillance audits. Minor nonconformities will be raised to major if they are not addressed by the following surveillance audit. Opportunity for Improvement is a documented statement, which may identify areas for improvement, but shall not make specific recommendation(s). Client may develop and implement solutions in order to add value to operations and management systems. SAI Global is not required to follow-up on this category of audit finding.
QEF08sa.RSPO.01 / Issue Date: 2009-Apr-15
© SAI Global Indonesia Copyright 2009
Page 58 of 58
