PF441 RSPO Public Summary Report Revision 1 (Sept/2014) RSPO – INITIAL ASSESSMENT PT. AGRO WANA LESTARI BUKIT SANTUAI PALM OIL MILL AND ITS SUPPLY BASE Office: Gedung Menara Global Lt. 5 Jl Jenderal Gatot Subroto Kav. 27, Jakarta – Indonesia Location: Penyahuan Village, Bukit Santuai District, Kotawaringin Timur Regency, Central Kalimantan Province, Indonesia Page | 1 PF441 RSPO Public Summary Report Revision 1 (Sept/2014) TABLE OF CONTENTS Page No. Section 1 Scope of the certification Assessment .................................................................. 3 1.1 Company Detail ...................................................................................... 3 1.2 RSPO Certification Information & Others Certification................................. 3 1.3 Location(s) of Mill and Supply Bases ......................................................... 3 1.4 Description of Supply Base ....................................................................... 4 1.5 Planting and Cycle ................................................................................... 4 1.6 Certified Tonnages .................................................................................. 4 1.7 Actual certified Palm production ............................................................... 4 1.8 Actual Sales of Certified Palm product ....................................................... 4 1.9 Actual Certified FFB Received Monthly ...................................................... 5 Section 2 Assessment Process ........................................................................................... 6 Certification Body ............................................................................................... 6 Assessment Methodology, Programme, Site Visit ................................................. 6 Tentative Date of Next Audit ............................................................................... 7 Total No. Of Mandays ......................................................................................... 7 BSI Assessment team ......................................................................................... 7 Accompanying Person Section 3 Assessment Finding ............................................................................................ 8 3.1 Detail of Audit Result ............................................................................... 8 3.2 Progress Against Time Bound Plan ........................................................... 8 3.3 Detail of Finding ...................................................................................... 8 Non-Conformity ...................................................................................... 8 Observation ............................................................................................ 8 Positive Finding ....................................................................................... 9 Issues raised by stakeholders ................................................................... 9 3.4 Status of Non Conformities Previously Identified and Observations ............. 10 3.5 Summary of the Nonconformities and Status ............................................. 11 Assessment Conclusion and recommendation ............................................................................. 11 Acknowledgement of Assessment Findings ................................................................................. 11 Appendix A Summary of Finding .......................................................................................... 12 Appendix B Time Bound Plan................................................................................................. 62 Appendix C Certification Unit RSPO Certification Detail ........................................................... 64 Appendix D Assessment Plan ................................................................................................ 65 Appendix E Stakeholder Contacted ....................................................................................... 67 Appendix F RSPO SCCS (CPO Mill: Mass Balance) .................................................................. 68 Appendix G The Company’s Map Location .............................................................................. 71 Appendix H List of Abbrevation Used ..................................................................................... 74 Page | 2 PF441 RSPO Public Summary Report Revision 1 (Sept/2014) Section 1. Scope of the Certification Assessment 1.1. Company Details RSPO Membership Old member: 1-0029-06-000-00 Date Number New member:1—0175-14-000-00 02nd December 2014 Company Name PT. Agro Wana Lestari (Bukit Santuai POM) Address Head Office: Gedung Menara Global 5th Floor Jl Jenderal Gatot Subroto Kav. 27, Jakarta – Indonesia Location: Jalan PT Ex Serpatim Seberang, Kecamatan Mentaya Hulu, Kabupaten Kotawaringin Timur, Provinsi Kalimantan Tengah - Indonesia Subsidiary of (if Goodhope Asia Holdings Ltd applicable) Contact Name Mr. Wilton Simanjuntak Website www.goodhopeasia.com E-mail [email protected] Telephone +62-21 52892260 Facsimile - 1.2. Certification Information Certificate Number SPO 630116 Date Scope of Certification Production of CPO and PK of PT. Agro Wana Lestari (Bukit Santuai Palm Oil Mill) and 4 (four) estates as supply base, namely Penyahuan Estate, Tanah Haluan Estate, Keminting Estate and Sangai Estate Mill capacity of Terawan POM is 90 tonnes FFB/hour. Other Certifications Certificate Number Standard(s) Certificate Issued by Expiry Date EMS 621527 ISO 14001 BSI Indonesia 16/03/2018 OHS 621529 OHSAS 18001 BSI Indonesia 16/03/2018 1.3. Location(s) of Mill & Supply Bases GPS Name Location [Map Reference #] (Mill / Supply Base) Longitude Latitude Bukit Santuai POM Jl. PT Ex Serpatim Seberang, Kecamatan Mentaya 112° 23’ 45.0 E 1° 51’ 45.0” S Hulu, Kabupaten Kotawaringin Timur Provinsi Kalimantan Tengah, Indonesia Penyahuan Estate Jl. PT Ex Serpatim Seberang, Kec Mentaya Hulu 112° 22’ 13.5 E 1° 52’ 12.1” S Kab Kotawaringin Timur Kalimantan Tengah. Tanah Haluan Estate Jl. PT Ex Serpatim Seberang, Kec Mentaya Hulu 112° 25’ 13.6 E 1° 51’ 34.0” S Kab Kotawaringin Timur Kalimantan Tengah. Keminting estate Jl. PT Ex Serpatim Seberang, Kec Mentaya Hulu 112° 29’ 41.6 E 1° 51’ 53.1” S Kab Kotawaringin Timur Kalimantan Tengah. Sangai Estate Jl. PT Ex Serpatim Seberang, Kec Mentaya Hulu 112° 28’ 57.1 E 1° 48’ 33.7” S Kab Kotawaringin Timur Kalimantan Tengah. Page | 3 PF441 RSPO Public Summary Report Revision 1 (Sept/2014) 1.4. Description of Supply Base Total Mature Immature Infrastructure Total % of Estate Planted (ha) (ha) & others (ha) Hectarage Planted (ha) Penyahuan Estate 2,312.50 0.00 2,312.50 2,183.64 4,496.14 20.89 Tanah Haluan Estate 830.60 0.00 830.60 534.45 1,365.05 7.50 Keminting estate 1,746.70 182.20 1,982.90 1,219.92 3,148.82 17.42 Sangai Estate 620.70 63.90 684.60 1,377.14 2,061.74 6.18 Total 5,510.50 246.10 5,756.60 5,315.15 11,071.75 51.99 1.5. Plantings & Cycle Age (Years) Tonnage / Year Estate Estimated Actual Forecast 0 - 3 4 - 10 11 - 20 21 - 25 Total 2015 (2015) (2016) I. Supply Base from their own estatea Penyahuan Estate 0.0 2312.50 0.00 0.00 2,312.50 - - 38,103 Tanah Haluan Estate 0.0 830.60 0.00 0.00 830.60 - - 19,354 Keminting estate 182.20 1746.70 0.00 0.00 1,928.90 - - 18,428 Sangai Estate 58.40 620.70 0.00 0.00 679.10 - - 3,974 Total 246.10 5,510.50 0.00 0.00 5,756.60 - - 79,859 II. Supply Base from Scheme smallholders (Nil) TOTAL FFB CERTIFIED 79,859 III. Supply Base from Independent third Parties/Middle Man *) 102,427 TOTAL SUPPLY FFB 182,286 *) Supply base from independent third parties/middle man is non certified FFB (Excluded from certificate scope) 1.6. Certified Tonnage Estimated Actual Projection Mill (2015) (2015) (2016) FFB CPO PK FFB CPO PK FFB CPO PK Bukit Santuai POM - - - - - - 79,859 20,364 3,434 Note: Projection OER (25.50 %) and KER (4.30 %) 1.7. Actual Certified Palm production MILL Capacity CPO (tonnes) PK (tonnes) Bukit Santuai POM 90 tonnes FFB/hour - - 1.8. Actual Sales of certified Palm Product MILL Certified CPO Sold Certified PK Sold Remarks Bukit Santuai POM - - Initial Assessment Page | 4 PF441 RSPO Public Summary Report Revision 1 (Sept/2014) 1.9. Actual Certified FFB received Monthly (Tonnes) Penyahuan Tanah Haluan Keminting Sangai Total from Month its supply Estate Estate Estate Estate base Januari 2015 - - - - - Pebruari 2015 - - - - - Maret 2015 - - - - - April 2015 - - - - - Mei 2015 - - - - - Juni 2015 - - - - - Juli 2015 - - - - - Agustus 2015 - - - - - September 2015 - - - - - October 2015 - - - - - November 2015 - - - - - December 2015 - - - - - Page | 5 PF441 RSPO Public Summary Report Revision 1 (Sept/2014) Section 2. Assessment Process Certification Body: BSI Services Malaysia Sdn Bhd, (ASI Accreditation Number: RSPO-ACC-19) B08-01 (East), Level 8, Block B, PJ 8, No.23, Jalan Barat, Seksyen 8, Petaling Jaya, 46050 Petaling Jaya, Malaysia Tel +603 7960 7801; Fax +603 7960 5801 Senniah Appalasamy: [email protected] www.bsigroup.com BSI is a leading global provider of management systems assessment and certification, with more than 60,000 certified locations and clients in over 100 countries. BSI Standards is the UK’s National Standards Body. BSI provides independent, third-party certification of management systems. BSI is ASI Accredited (RSPO-ACC-19) since 31/10/2014 with accredited office located at Kuala Lumpur, Malaysia and an office at Singapore, Jakarta, Bangkok and Australia which involve in RSPO Certification Program. Assessment Methodology, Programme, Site Visits A pre-audit to RSPO Principles and Criteria was conducted on 26th - 28th January 2015 to determine progress Bukit Santuai POM and its supply base has made towards certification. The Initial Certification Audit was conducted on 26th – 29th May 2015. The audit programme is included as Appendix D. The approach to the audit was to treat the mill and its supply base as an RSPO Certification Unit. Mill was audited together with the sample estates. A range of environmental and social factors were covered. This includes consideration of topography, palm age, proximity to areas with HCVs, declared conservation areas and local communities. The methodology for collection of objective evidence included physical site inspections, observation of tasks and processes, interviews of staff, workers and their families and external stakeholders, review of documentation and monitoring data. RSPO P&C 2013 was used as Checklists and questionnaires were used to guide the collection of information to assess compliance. The comments made by external stakeholders were also taken into account in the assessment. Meetings were held with stakeholders to seek their views on the performance of the company with respect to the RSPO requirements and aspects where they considered that improvements could be made. At the start of each meeting, the interviewer explained the purpose of the audit followed by an evaluation of the relationship between the stakeholder and the company before discussions proceeded. The interviewer recorded comments made by stakeholders and these have been incorporated into the assessment findings. Structured worker interviews with male and female workers and staff were held in private at the workplace in the mill and the estates. Fieldworkers were interviewed informally in small groups in the field. In addition, the wives of workers and staff were interviewed in informal group meetings at their housing. Separate visits were made to each of the local communities to meet with the village head and residents. Company officials were not present at any of the internal or external stakeholder interviews. A list of Stakeholders contacted is included as Appendix E. The assessment findings for the recertification are detailed in Section 3.3. This report is structured to provide a summary of assessment finding as attached in the Appendix A. The assessment was based on random samples and therefore nonconformities may exist that have not been identified. This report was internally reviewed by Mr. Sabar Kembaren. Page | 6 PF441 RSPO Public Summary Report Revision 1 (Sept/2014) The following table would be used to identify the locations to be audited each year in the 5 year cycle Name (Mill / Supply Base) Year 1 Year 2 Year 3 Year 4 Year 5 Bukit Santuai POM x x x x x Penyahuan Estate x x x Tanah Haluan Estate x x Keminting estate x x x Sangai Estate x x Tentative Date of Next Visit: 02/01/2017 Total No. of Mandays: 9 Mandays BSI Assessment Team comprises of: Haeruddin – Assessor (Lead Auditor) He holds Bachelor Degree in Forest Management, graduated from Hasanuddin University on 1994. He has 16 years of work experience in forest concession, forestry industry and the latest is within Oil Palm Plantation in Indonesia. He experiences as auditor for several sustainability standard including FSC, UTZ, Organic Farming, 4C, ISPO and RSPO. He completed the ISO 9001 Lead Auditor Course; ISPO Lead Auditor endorsed Course, RSPO Lead Auditor Course, and also completed ISCC, RSPO SCCS, RSPO RED course, etc. He had been involved in RSPO auditing since November 2010 in more than various companies in Malaysia, Thailand and Indonesia. During this assessment, he assessed on the aspects of legal and estate best practices. Pratama Sedayu- Team member He graduated from University of Jenderal Soedirman on 2008, majoring in Social Economic of Agriculture. He involved in RSPO certification since 2009 as a team member covering assessment against RSPO P&C in Indonesia and Malaysia. He completed the ISO 9001, OHSAS 18001 Lead Auditor Course, HCV Identification and Management; ISPO Lead Auditor endorsed Course and RSPO Lead Auditor Course. During this assessment, he assessed on the aspects of legal, estate best practices, Environmental aspect and OHS. Nanang Mualib - Team member He graduated from Bogor Agriculture University on 1999, Forestry Faculty. He involved in RSPO certification since 2010 as a team member covering assessment against RSPO P&C in Indonesia. He completed the ISO 9001 Lead Auditor Course, Technical Training of HCV Assessment; ISPO Lead Auditor endorsed Course. During this assessment, he assessed on the aspects of social. Accompanying person: None Page | 7 PF441 RSPO Public Summary Report Revision 1 (Sept/2014) Section 3. Assessment Findings 3.1. Details of audit results are provided in the following Appendix: ☒ RSPO P&C 2013 Summary of the Assessment – Appendix A ☒ PT. Agro Wana Lestari (Goodhope Asia Holdings, Ltd Time Bound Plan – Appendix B ☒ RSPO Supply Chain Certification Assessment – Appendix F 3.2. Progress against Time Bound Plan Goodhope Asia Hodings, Ltd demonstrates a challenging time bound plan to certify its entire mill and supply bases, there is no change of time bound plan. Audit team found that the company has strong commitment to implemet time bound plan and comply with the time bound plan. BSI also assessed the requirement for partial certification and concluded that: 1. There are no unresolved significant land disputes. 2. No replacement of primary forest or loss of HCV. New land acquisition follows the RSPO NPP process including public notification of new planting. 3. No labour disputes that are not being resolved through an agreed process. 4. No evidence of noncompliance with law noted. 3.3. Details of findings The nonconformity is listed below. The summary report of the assessment by criteria is listed in Appendix A. During the initial assessment there was a major nonconformity raised and two observations. The certification unit submitted Corrective Action Plans for the nonconformity. Corrective action plans with respect to the nonconformity was reviewed by the BSI audit team and accepted. Non-Conformity NCR # Description Category (Major/Minor) 1149419M5 Requirements Indicator 7.3.1 Major There shall be evidence that no new plantings have replaced primary forest, or any area required to maintain or enhance one or more High Conservation Values (HCVs), since November 2005. New plantings shall be planned and managed to best ensure the HCVs identified are maintained and/or enhanced (see Criterion 5.2). Guidance: Where land has been cleared since November 2005, and without a prior and adequate HCV assessment, it will be excluded from the RSPO certification programme until an adequate HCV compensation plan has been developed and accepted by the RSPO Evidence of Nonconformity Based on document review, hectare statement and reports indicating there are land clearing and planting commenced since 2008, while HCV assessment as per "Laporan Identifikasi dan Analisis Keberadaan Nilai Konservasi Tinggi (NKT) PT AWL" in October 2009. PT AWL is waiting for compensation liability review by RSPO. Statement of Nonconformity PT Agro Wana Lestari is waiting for the compensation liability review by RSPO. The nonconformity remains open until RSPO has decided the status of HCV compensation and remediation plan for PT Agro Wana Lestari. Action Taken: Compensation and remediation plan for PT. AWL has been approved by RSPO on Page | 8 PF441 RSPO Public Summary Report Revision 1 (Sept/2014) 13/02/2016. Closed: Yes Observation OBS # Description 1 Indicator 4.7.2 A number of observations identified: 1. PT Agro Wana Lestari have assessed the risk from washing and keeping the sprayer's uniform and PPE at worker housing in Penyahuan Estate and Keminting Estate, further has prepared the Objective-Target- Programme to mitigate the potential of chemical contamination; Company needs to ensure the construction completed in timely manner; 2. Safety signboards needs to improve around Bukit Santuai POM effluent ponds, related to risk of drowning; Land Application in Tanah Haluan Estate, related to depth of new flatbeds; 3. Having fire extinguisher located in various premises in plantation, palm oil mill, workshop, storage and housing; Company need to review the placement (height) of fire extinguishers; 2 Indicator 5.1.2 A number of observation identified: 1. PT Agro Wana Lestari have identified the environmental impact from fuel station in Penyahuan Estate and Keminting Estate, and preparing the Objective-Target-Programme to mitigate the detriment environmental impact; Company needs to ensure the mitigation plan for second containment infrastructure completed in timely manner; 2. PT Agro Wana Lestari have identified the environmental impacts from washing and keeping the sprayer's uniform and PPE at worker housing in Penyahuan Estate and Keminting Estate, further has prepared the Objective-Target-Programme to mitigate the potential of contamination; Company needs to ensure the mitigation plan completed in timely manner; 3. PT Agro Wana Lestari - Tanah Haluan Estate needs to improve the operational of Land Application - to mitigate the pollution of palm oil mill effluent into waterways; Positive Findings PF # Description 1 There was noted land disputes was noted 2 The company has conserved Bukit Santuai, Bukit Panjang and Bukit Hawuk as “Hutan Adat”. Issues Raised by Stakeholders Issues Description # 1 Social issues: - PT Agro Wana Lestari provides development to surrounding community and close to 70% of community works in company. - Company shows commitment to respect area that is culturally protected. For example, company commitment to established Bukit Santuai, Bukit Panjang and Bukit Hawuk as Cultural Forest. - Company is using agreement with community and involvement from cultural aspects, non coercive – in negotiating land compensation value. - PT Agro Wana Lestari has implemented the social program in form of road maintenance, bore well, religious day celebration, scholarship award, public medication day and computer aid. - Company’s CSR activities in general are good, however can improve through village community involvement. - Communication between company and local community is good. Company responded inquiry, air request or complaint from community. - PT Agro Wana Lestari has obligation to develop scheme smallholder plantation. Currently in process of establishing the cooperative. Land survey has been doneby “Dinas Perkebunan Kabupaten Kotawaringin Timur” for future scheme smallholder plantation land. - No report from community noted related to land conflict between company and PT Agro Wana Lestari. Page | 9 PF441 RSPO Public Summary Report Revision 1 (Sept/2014) Management Response: - PT Agro Wana Lestari has prepared and implemented CSR program in form of improving road infrastructures and bridges, as well as otheractivity. With relation to community development and involvement, company has dump truck rental program – Mitra Makmur. PT Agro Wana Lestari has always presented during village development meeting, and presenting company’s CSR program. PT Agro Wana Lestari will improve the involvement and communication. - PT Agro Wana Lestari commited to help surrounding community’s welfare and development, on of the mean through scheme smallholder program. Company has communicated the scheme smallholder program. In fact, PT Agro Wana Lestari has implemented 607 Ha out of 2,463 Ha as scheme smallholder – awaits agreement and land disposition as per “Arahan Lokasi Bupati Kotawaringin Timur No.525.26/099/EKSDA/II/2014” dated 13/02/2014. Auditor Team Findings: Positive comments 2 Labour issues: - There has been no industrial dispute between company and the employees. - All employees have been registered with social insurance scheme as per Company Regulation chapter VIII. - Company has conducted medical check up for all employees, including general check up, biomonitoring and pregnancy test (for sprayers and manuring workers). - There is no indication of forced labor. - Annual leave and other employee right have been granted by company. - Employee’s complaint mostly related to clean water shortage during long dry season. But employees appreciate company effort/response by providing clean water tank and repairing water reservoir for employee’s housing. - Gender committee has been established in January 2015 and has prepared a work program, signed and approved 15/01/2015. - Company has established worker cooperative PT Agro Wana Lestari. Management Response: Positive comments Auditor Team Findings: Positive comments 3 Environmental issues: - PT Agro Wana Lestari has cooperation with Local Government and Cultural Board to established Bukit Santuai as cultural conservation site. - There is no report from local community related to environment pollution from company’s operational activities. - PT Agro Wana Lestari has regular training for fire fighting training. Management Response: Positive comment Auditor Team Findings: Positive comment 4 Legal issues: Perusahaan telah memiliki / memperoleh perizinan sesuai dengan perundang undangan Indonesia. Management Response: Positive comment Auditor Team Findings: Positive comments 5 Operational issues: No issue was raised by stakeholders Management Response: Positive comment Auditor Team Findings: Positive comment 3.4. Status of Nonconformities Previously Identified and Observations N/A (Intial Assessment) Page | 10