RSPO CERTIFICATION ASSESSMENT PUBLIC SUMMARY REPORT

Making our world safer 

RSPO CERTIFICATION ASSESSMENT 

PUBLIC SUMMARY REPORT 

Date of assessment 

04 to 08.07.2011 

PT. TUVNORD Indonesia 

System Certification Management 

Has assessed 

PT. Tapian Nadenggan 

Palm Oil Mill and Supply Base for Compliance to RSPO Principles and Criteria for 

Sustainable Palm Oil Production 

Langga Payung POM and Supply Base 

CPO 36,906.99 t & PK 9,492.28 t 

Revision 3 

Report prepared by 

Wieke Savitri 

Public Summary Report PT. Tapian Nadenggan –Langga Payung Mill Page 1

TABLE OF CONTENTS 

Summary 3 

Abbreviations Used 3 

1. SCOPE OF THE CERTIFICATION ASSESSMENT 4 

1.1 National Interpretations 4 

1.2 Scope of Certification 4 

1.3 Location 5 

1.4 1. Areas of estates 

2.Description of Supply Base 

7 

7 

3 Company Background and Ownership History 7 

1.5 Dates of Planting and Replanting Cycle 9 

1.6 Other Certifications Held 9 

1.7 Time-Bound Plan for Other Certification Units 10 

1.8 Approximate Tonnages Certified 11 

1.9 Date Certification Issued and Scope of Certificate 11 

2. ASSESSMENT PROCESS 11 

2.1 Certification Body 11 

2.2 Assessment Methodology 12 

2.3 Certification assessment checklist of principles and criteria 13 

2.4 Review of documents 13 

2.5 On-site and Follow-up interviews 13 

2.6 Resolution of Corrective actions 14 

2.7 Qualifications of lead assessor and assessment team 14 

2.8 Outline of how stakeholders were interviewed 16 

2.9 List of stakeholders 16 

2.10 Questions posed in interviews with stakeholders 17 

2.11 Date of next surveillance visit 17 

3. ASSESSMENT FINDINGS 15 

3.1 Summary of findings 18 

3.2 Detailed Non-Conformity Report, Corrective Actions taken and Auditors’ 

36 

Conclusions 

3.3 1.Noteworthy positive components 46 

2. Some Recommendations for Improvement to the Mill and Estates 46 

3.4 Issues raised by stakeholders and findings of the assessment team 47 

3.5 Certified organization’s acknowledgement of internal responsibility 48 

3.6 Formal sign-off of assessment findings 49 

ANNEXES 

A Report SCCS-Langga Payung Mill 50 

B Draft RSPO Certificate 53 

C Certification Assessment Plan 55 


Summary 

PT. TÜVNORD Indonesia (TNI) – Certification Body is a member of the worldwide German TÜV 

NORD group. TNI has performed a comprehensive certification assessment of PT. Tapian 

Nadenggan, and concludes that its operations comply with the RSPO Principles and Criteria 

Indonesia National Interpretation (RSPO INA-NIWG) version May 2008. TNI therefore recommends 

that PT. Tapian Nadenggan be approved as a producer of RSPO Certified Sustainable Palm Oil. 

This certification assessment is on Langga Payung Mill producing a total 36,906.99 t/year CPO and 

9,492.28 t/year PK*. 

(*January-December 2010) 

Abbreviations Used 

AMDAL 

ANDAL 

Bapedalda 

B3 

BOD 

BPN 

Analisis Mengenai Dampak Lingkungan (Environmental Impact Study Report) 

Analisis Dampak Lingkungan (Environmental Impact Analysis Report) 

Badan Pengendalian Dampak Lingkungan Daerah (Regional Environmental Impact 

Control Agency ) 

Bahan Berbahaya dan Beracun (Toxic and Hazardous Materials 

Biological Oxygen Demand 

Badan Pertanahan Nasional (National Land Agency) 

CDM Clean Development Mechanism (Mekanisme Pembangunan Bersih ) 

COD 

CPO 

CSR 

DAR 

Deperindag RI 

EFB 

FFA 

FFB 

GPS 

ha 

HCV 

HGU 

HSE 

IPM 

JAMSOSTEK 

K3 

KAN 

KLH 

Chemical Oxygen Demand 

Crude Palm Oil 

Corporate Social Responsibility 

Deutscher Akkreditierungs Rat (German Accreditation Body) 

Departemen Perindustrian dan Perdagangan (Department of Industry and Commerce of 

the Republic of Indonesia) 

Empty Fruit Bunch(es) 

Free Fatty Acid(s) 

Fresh Fruit Bunch(es) 

Global Positioning System 

Hectare(s) 

High Conservation Value 

Hak Guna Usaha (Land UseTitle) 

Health Safety Environment (Kesehatan, Keselamatan dan Lingkungan) 

Integrated Pest Management 

Jaminan Sosial Tenaga Kerja (Labour Social Insurance) 

Keselamatan dan Kesehatan Kerja (Occupational Safety and Health) 

Komite Akreditasi Nasional (The Indonesian Accreditation Committee) 

Kementrian Lingkungan Hidup (Ministry of Environment) 


KUD 

LCC 

LD 50 

LSM 

MSDS 

OER 

P2K3 

P3K 

Permenaker RI 

PK 

PKO 

PMA 

POME 

PPE 

PTTN 

PTSKU 

RKL-RPL 

SMK3 

SOP 

SPSI 

TNI 

UKL/UPL 

Koperasi Unit Desa (Village Cooperative) 

Legume Cover Crop 

Lethal Dosage (50% mortality of tested population) 

Lembaga Swadaya Masyarakat (NGO(s)) 

Material Safety Data Sheet(s) 

Oil Extraction Rate 

Panitia Pembina Keselamatan dan Kesehatan Kerja (Guiding Committee of 

Occupational Safety and Heath) 

Pertolongan Pertama Pada Kecelakaan (First Aid Emergency) 

Peraturan Menteri Tenaga Kerja (Regulation(s) of the Ministry of Labour of Republic of 

Indonesia) 

Palm Kernel 

Palm Kernel Oil 

Penanaman Modal Asing (Foreign Investment) 

Palm Oil Mill Effluent 

Personal Protective Equipment 


PT. Satya Kisma Usaha 

Rencana Kelola Lingkungan dan Rencana Pemantauan Lingkungan (Environmental 

Management Plan – Environmental Monitoring Plan) 

Sistim Manajemen – Keselamatan dan Kesehatan Kerja (Management System of 

Occupational Safety and Health) 

Standard Operating Procedure(s) 

Serikat Pekerja Seluruh Indonesia (Worker Union) 

PT. TÜV Nord Indonesia 

Upaya Kelola Lingkungan/Upaya Pemantauan Lingkungan (Environmental Management 

Efforts and Environmental Monitoring Efforts) 

1. SCOPE OF THE CERTIFICATION ASSESSMENT 

1.1 National Interpretation 

The standard requirements of the Indonesian National Interpretation of RSPO Principles and Criteria 

(RSPO INA-NIWG) version May 2008 were used to assess the operations of the Palm Oil Mill and the 

supply base of FFB for PT. Tapian Nadenggan. 

1.2 Scope of Certification 

The scope of certification is the production from 1 (one) mill supplied by 3 (three) companyowned 

estates. The mill also processes outgrower FFB, but they are not included in the claimed 

certification. 


1.3 Locations 

PT. Tapian Nadenggan – Langga Payung Mill (PTTN) is offering 1 (one) mill and 3 (three) estates, 2 

estates are located in Kabupaten Padang Lawas Utara, and 1 (one) estate Normark Estate under PT. 

Satya Kisma Usaha (PTSKU) is located in Kabupaten Labuhanbatu Selatan, Province of North Sumatra, 

Indonesia for certification. The locations of the mill and estates are shown in Figures A-1 with their 

GPS coordinates (The readings for the estates are for their offices). 

Table 1: GPS Coordinates for Mill and Estates of Tapian Nadenggan (North Sumatra area) (Estate 

coordinates are for their offices) 

Code 

Unit 

Location 

GPS coordinates 

Longitude (E) Latitude (S) 

LPYM 

Langga Payung 

POM 

Ds . Huta Baru Nangka, Halongonan, 

Padang Lawas Utara, Sumatra Utara 

99º 53' 13'' E 1º 39' 16'' N 

LPYE 

PBNE 

Langga Payung 

Estate 


Padang Lawas Utara, Sumatra Utara 99º 53' 22'' E 1º 38' 55'' N 

Paya Baung Estate Ds. Huta Baringin, Simangambat, 99º 58' 31'' E 1º 37' 12'' N 

Padang Lawas Utara, Sumatra Utara 

NRME Normark Estate Ds. Normark, Kota Pinang, 

Labuhanbatu Selatan, Sumatra Utara 

99º 59' 53'' E 1º 50' 57'' N 

Figure 1a. Map of Langga Payung Mill and Estates Location 


Figure 1b. Overlay Map of Langga Payung Estate, Paya Baung Estates, and Normark Estate 


1.4.1 Areas of Estates 

Three (3) estates are included in this certification assessment. Their land use data are given in 

Table 2. 

Table 2: Land use data for PT. Tapian Nadenggan – Langga Payung Mill ( June 2011) 

Langga Payung 

Estate 

Paya Baung 

Estate 

Normark 

Estate 

Total 

area 

Planted (ha) 4,961.04 2,507.39 1,900.89 9,369.32 

Others (building, public 

facilitiy) (ha) 

347.49 143.70 294.21 785.40 

HGU (ha) 5,308.53 2,651.09 2,195.10 10,154.72 

HCV (ha) (included in 

planted area) 229.45 27.7 226.83 483.98 

1.4.2. Description of Supply Base 

FFB for the mill are sourced from 3 (three) company-owned estates and also independent 

smallholders/ outgrowers. PTTN manages ± 10,154.72 ha of its own estates, and also receives FFB 

from independent smallholders. The smallholders are, however, independent, not beholden in any way to 

sell their fruits only to PTTN. The total independent smallholders/ outgrowers FFB received in 2010 

(January – December) was 86,671.37 t (33.89%) of the total processed by Langga Payung Palm Oil Mill. 

The respective volumes of FFB processed from the own-estates and independent smallholders are 

given in Table 3. 

Table 3: Sources of FFB processed by Langga Payung Palm Oil Mill (January – December 2010) 

Source of FFB 

FFB 

(t) 

Percentage 

(%) 

Langga Payung Estate 88,661.98 34.66 

Paya Baung Estate 47,943.19 18.74 

Normark Estate 32,503.61 12.71 

Total PTTN-Owned Estates 169,108.78 66.11 

Independent Smallholders 86,671.37 33.89 

Third party suppliers 0 0 

Total smallholders and third party 86,671.37 33.89 

Total FFB processed 255,780.15 100.00 

The smallholders was developed as part of PTTN’s commitment to help the local community 

development by advising them on how to plant oil palm. PTTN is committed to fully support 

smallholders develop their plots in a sustainable manner in compliance with the RSPO Principles 

and Criteria. However, their production is not within the scope of this current RSPO certification. 

1.4.3. Company Background and Ownership History 

PTTN is a subsidiary of Sinar Mas Agro Resources and Technology Tbk or known as PT.SMART 

Tbk Group. PT SMART Tbk is one of the largest, publicly-listed, integrated palm-based consumer 

companies in Indonesia which is committed to sustainable palm oil production. Founded in 1962, 

SMART's palm plantations have a total coverage area of approximately 137,500 hectares 

(including small holders). SMART also operates 15 mills, four kernel crushing plants and four 

refineries. SMART listed its shares on the Indonesia Stock Exchange in 1992. SMART is a 

subsidiary of Golden Agri-Resources Ltd ("GAR"), which is one of the largest palm-based 


companies in the world which is listed on the Singapore Exchange. SMART also manages all of 

GAR's oil palm plantations, which has a total planted area of 445,100 hectares (including small 

holders) in Indonesia, as at 31 March 2011. 

SMART's primary activities are cultivating and harvesting of palm trees, processing of fresh fruit 

bunches into crude palm oil ("CPO") and palm kernel, and refining CPO into value-added products 

such as cooking oil, margarine and shortening. Besides bulk and industrial oil, SMART's refined 

products are also marketed under several brands such as Filma and Kunci Mas. Today, these 

brands have been recognised for their high quality and command significant market share in their 

respective segment in Indonesia. 

As a part of SMART Group, PTTN aim to be the leader in sustainable palm oil production by 

adopting the best industry practices and standards, managing the environment responsibly and 

empowering the communities where we operate while delivering shareholder value. 

PTTN sustainability strategy is implementing the best practices holistically in all dimensions of 

sustainability (the environment, community, market place and work place), benchmarking our 

practices against the Roundtable on Sustainable Palm Oil ("RSPO") and the United Nations Global 

Compact ("UNGC"), and engaging stakeholders proactively. 

PTTN has been established in 1979, and join with SMART since 1989 PTTN operations in 

Kabupaten Padang Lawas Utara and Kabupaten Labuhanbatu Selatan, Province of North 

Sumatera, consist of one mill and three estates : Langga Payung POM, Langga Payung Estate, 

Paya Baung Estate and Normark Estate The acquisition of lands has done in 1992 -1999 for 

Langga Payung Estate and Paya Baung Estate, and in 2005 for Normark Estate with total area 

10,154.72 ha.. 

The summary of legal permist are shown in a table below : 

Company Unit Land Use Title / 

Hak Guna Usaha 

(HGU) 

PT. Tapian 

Nadenggan 

PT. Satya Kisma 

Usaha 

Langga Payung 

Mill/ Estate 

Paya Baung 

Estate 

Normark Estate 

23/HGU/DA/82 

23/HGU/DA/82/A/68 

14/HGU/1989 

5/HGU/BPN/2005 

Site Permit/ Izin 

Lokasi 

No. 593/40/K/ 

BKPMD/1988, 

dated on 

16.07.1988 by 

Decree from 

Governor North 

Sumatra Province. 

Plantation 

Operation Permit / 

Izin Usaha 

Perkebunan 

No.763/Menhutbun/V 

II-2000, dated on 

29.06.2000 by 

Decree from Ministry 

of Forestry Republic 

of Indonesia. 

No.948/Menhutbun/V 

II-2000, dated on 

08.08.2000 by 

Decree from Ministry 

of Forestry Republic 

of Indonesia. 

HGU Decree 

HGU 

Number 

23/HGU/DA/82 1 

23/HGU/DA/82/A/68 1 

14/HGU/1989 1 

Area (ha) Location Issued of 

HGU 

1,209.15 Desa Batang Nadenggan 

18/12/1992 

1,765.47 Desa Sihopuk Baru 

4,985.00 Desa Huta Baringin dan 

Desa Ujung Batu Julu 

24/12/1992 

30/08/1999 

Validity of 

HGU 

31/12/2072 

31/12/2037 

31/12/2024 

5/HGU/BPN/2005 1 

2,195.10 Desa Perkebunan 

Normark 

25/02/2005 

31/12/2029 

Total HGU area 

10,154.72 


1.5 Dates of Planting and Replanting Cycle 

In general, oil palm is replanted after 25 years, but possibly shorter / longer depending on the 

economics and status of the crop. The summary of planted oil palms is given in Table 4 and the 

detailed age profile of planted palms and total area is given in Table 5. 

Table 4: Area Summary of planted oil palms in Langga Payung Estate, Paya Baung Estate and Normark 

Estate for this certification assessment (as at June 2011) 

Estate 

Langga Payung 

Paya Baung 

Normark 

Area Summary (ha) * 

Planted Oil 

Location 

Palm 

Mature Immature 

Kec. Halongonan. Kab. Padang 

Lawas Utara, Sumatera Utara 

4,961.04 3.918,61 1,042.43 

Kec. Simangambat. Kab. Padang 

Lawas Utara, Sumatera Utara 

2,507.39 2.507,39 0 

Kec. Kota Pinang, Kab. Labuhan 

Batu Selatan, Sumatera Utara 

1,900.89 1.667.03 233.86 

Total 9,369.32 8,093.03 1,276.29 

Table 5 : Area statistics of planted oil palms in Langga Payung Estate, Paya Baung Estate and Normark 

Estate for this certification assessment (as at June 2011) 

Estates 0 - 5 % 6 - 10 % 11 - 15 % 16 – 20 % 21 - 30 % Total 

Langga 

Payung 

1,228.39 24.76 0 0 0 0 0 0 3,732.65 75.24 4,961.04 

Paya Baung 0 0 0 0 21.02 0.84 0 0 2,486.37 99.16 2,507.39 

Normark 570.55 30.01 836.76 44.02 239.55 12.60 - 254.03 13.36 1,900.89 

Total 1,798.94 836.76 260.57 6,473.05 9,369.32 

1.6 Other Certifications Held 

PTTN has been certified to: 

• ISO 9001:2008, Quality Management System for Langga Payung Mill by SAI Global since 

2002 

• SMK3, based on Permenaker No. 5 Tahun 2005 by the Ministry of Labor of the Republic of 

Indonesia since 2000 ; 

Organizational Information/ Contact Person 

All information in respect of this certification assessment for RSPO should be addressed to: 

Contact Person 

Position 

Organization name 

Address 

Mr. Ismu Zulfikar 

Head of Environment Department 

PT. TAPIAN NADENGGAN 

BII Plaza Tower 2, 10 th Floor 

Jl. MH. Thamrin Mo.51 

Postal code, city 

10350, Jakarta Pusat 

Country 

Indonesia 

Telephone Nr +6021-3181388 

Fax Nr +6221-3181389 

Email 

ismu-zulfikar@smart-tbk.com 


1.7 Time-Bound Plan for Other Certification Units 

PTTN as a subsidiary of PT. SMART Tbk has commitment to obtain the RSPO certification for 1 

(one) mill and its supply base in North Sumatra this year and for other 3 (three) mills and its supply 

base in Kalimantan as the others companies under PT. SMART Tbk Group. PTTN also has future 

plans to provide training and awareness about the RSPO certification process to smallholders / out 

growers for the mill that receive the fruit from the plasma farmers/ outgrowers. The Bukit Subur 

KKPA in East Kalimantan will be proposed to get RSPO certification in 2012. 

The time-bound plan for doing so is set out in the table below: 

Time bound plan for mills and estates under PT. Tapian Nadenggan: 

No Name of Mill Supply Base 

1 Hanau Mill Hanau Estate 

Tasik Mas Estate 

Tanjung Paring Estate 

Langadang Estate 

Medang Sari Estate 

2 Semilar Mill Semilar Estate 

Sei Rindu Estate 

Mandang Estate 

Puri Estate 

3 Jak Luay Mill Pantun Mas Estate 

Pantun Mas KKPA 

Jak Luay Estate 

Jak Luay KKPA 

Long Buluh Estate 

Bukit Subur Estate 

Bukit Subur KKPA 

Company of 

Mill 

PT Tapian 

Nadenggan 

PT Tapian 

Nadenggan 

PT Tapian 

Nadenggan 

Location 

Central 

Kalimantan 

Central 

Kalimantan 

East 

Kalimantan 

Proposed Time for 

Certification 

2010* 

(Delayed due to 

grievance panel) 

2012 

2012 

Time bound plan for mills and estates under others companies (SMART Group) 

No Name of Mill Supply Base 

1 Padang 

Halaban Mill 

2 Batu Ampar 

Mill 

Padang Halaban Estate 

Pernantian Estate 

Adipati Estate 

Kanopan Ulu Estate 

Batu Ampar Estate 

Batu Mulia Estate 

Sungai Panci Estate 

Sungai Panci KKPA 

3 Tanah Laut Mill Tanah Laut Estate 

Kintapura Estate 

5 Leidong West 

Mill 

8 Gunung 

Kombeng Mill / 

Muara Wahau 

Mill 

Leidong West Utara 

Estate 

Leidong West Selatan 

Estate 

Bukit Intan Estate 

Bukit Mas Estate 

Gunung Kombeng Estate 

Gunung Kombeng KKPA 

Muara Wahau Estate 

Rantau Panjang Estate 

Rantau Panjang KKPA 

9 Jelatang Mill Batang Merangin Estate 

Kubang Ujo Plasma 

Pamenang Plasma 

10 Pelakar Mill Pelakar Estate 

Tiga Serumpun Estate 

Bukit Bungkul KKPA 

Company of 

Mill 

PT SMART Tbk 

PT SMART Tbk 

PT SMART Tbk 

PT Leidong 

West Indonesia 

PT Kresna Duta 

Agroindo 


Agroindo 


Agroindo 

Location 

North 

Sumatera 

South 

Kalimantan 

South 

Kalimantan 

Proposed Time for 

Certification 

2010* 

(has been 

assessed) 

2010* 



2010* 



Bangka 2011 

East 

Kalimantan 

2012 

Jambi 2012 

Jambi 2012 


11 Langling Mill Bangko Inti Estate 

Bangko Plasma 

12 Sungai Bengkal Sungai Bengkal Estate 

Mill 

Batang Gading Estate 

Sungai Bengkal KKPA 

Batang Gading KKPA 

Kilis Estate 

Kilis KKPA 

13 Bukit Kapur Mill Sungai Cantung Estate 

Bukit Kapur Estate 


Agroindo 

PT Satya Kisma 

Usaha 

PT SMART Tbk 

Jambi 2012 

Jambi 2012 

South 

Kalimantan 

2014 

1.8 Approximate Tonnages Certified 

All FFB produced from the company’s 3 (three) estates are processed by Langga Payung POM 

which has milling capacity 60 t FFB/ hour. The production from smallholders/ outgrowers FFB is not 

included within the scope of this assessment at this time. The volumes claimed for certification by 

Langga Payung POM are shown in Table 6: 

Table 6: Palm oil / palm kernel volumes claimed for certification 

Mill 

Estates 

Annual Production from company estates (t) 

CPO PKO PK 

Langga Payung 19,349.95 0 4,976.70 

Langga 

Paya Baung 10,463.32 0 2,691.11 

Payung POM 

Normark 7,093.72 0 1,824.47 

TOTAL 

36,906.99 0 9,492.28 

Note : The volumes are the actual production from January to December 2010, OER = 21.82%, 

1.9 Date Certification Issued and Scope Certificate 

The scope of the certificate to be issued covers the production from 1 (one) palm oil mill and 3 

(three) estates. The date of issuance of the certificate will depend on approval of this Assessment 

Report by the RSPO Secretariat. A draft certificate is shown in Annex B. 

2. ASSESSMENT PROCESS 

2.1 Certification Body 

PT. TÜV NORD Indonesia is a subsidiary of the German TÜV NORD Group. Our company is a 

market leader in Indonesia for inspection, testing and certification services. Through more than 600 

clients, we offer not just a high added-value service but also the trust and confidence embedded in 

our issued certificates / reports. We satisfy not only our direct customers but also other 

stakeholders, like regulators and interested society, including NGOs, through our competent 

auditors, inspectors and analysts. 

PT. TÜV NORD Indonesia, through its HQ in Germany, is a member of International Accreditation 

Forum (IAF) and accredited by DAR–German and locally by the Indonesian Accreditation 

Committee (KAN). Services provided by the Strategic Business Unit Systems Certifications are: 

Food Safety Management System ISO 22000, Information Security Management System ISO 

27001, Social Accountability SA 8000, Food Hygiene HACCP, Medical Device Directive MDD, 

ISO 13485, Occupational Health and Safety OHSAS 18001, Product Certification: GS-Mark, 

CE-Mark, SNI Mark, Inspection for ISPS Code, Clean Development Mechanism (CDM) Validation & 

Verification, British Retail Consortium, BRC Issue 5. 


The offices of PT. TÜV NORD Indonesia are at: 

Head office 

System Certification Management 

Perkantoran Hijau Arkadia Tower F, 7 th Floor 

Suite 706 

Jl. Let. Jend. TB Simatupang Kav. 88 

Jakarta 12520 – Indonesia 

Tel : +6221 7883 7338 

Fax : +6221 7883 7336 

Branch office 

Graha Pangeran 7-H1 Floor 

Jl. Jend. A Yani 286 Surabaya 60234 – 

Indonesia 

Tel : +6231 8292602 

Fax : +6231 8292723 

Laboratory Division 

Jl. Jababeka XVII E Blok U No. 27B 

Kawasan Industri Jababeka I 

Cikarang Bekasi 17530 – Indonesia 

President Director: Mr. Robert Napitupulu 

Email: rnapitupulu@tuv-nord.com 

Website : www.tuev-nord.de 

2.2 Assessment Methodology 

The certification assessment of PTTN, Langga Payung Mill and its supply base at North Sumatera 

was carried out from July 4 to 8, 2011. A pre audit also conducted in February 2011 to confirm the 

scope of certification and the preparedness of the organization before certification asessment. The 

assessment comprised four phases: 

• A desk audit (document check) with a customised RSPO audit checklist according to the RSPO 

manual, procedures and palm oil mill and estate working instructions; 

• Review results of consultation with stakeholders prior to certification assessment. The detailed 

method is given in Point 2.8; 

• Background investigations (published disputes, public comments on preliminary 

announcement), followed by interviews with RSPO management, employees and other 

stakeholders (associated people, NGOs, land regulators, social watchers, labour union); and 

• Verification of proposed corrective actions followed by review of the assessment report by 

internal veto persons (Senior Manager of PT. TÜV NORD Indonesia). 

The summary public report of this certification assessment includes Corrective Action Requests, 

Corrective Actions Taken, Verification of Corrective Actions Taken and Progress in Implementation 

of Corrective Actions to be checked in the Surveillance Audit. 

The Non Conformities are broadly due to: 

• Major Non Conformities: 

- mistakes in interpretation of RSPO P&C by PTTN directly affecting the certification assessment; 

- requirements of some RSPO P & C not met or, in other words, non-compliance to the P&C on 

a major indicator(s); 

These raise doubt on the capability of PTTN to achieve the desired results. 

• Minor Non Conformities: 

Where information is insufficient, unclear or insufficiently transparent to establish whether a 

requirement is met, or non-compliance to the requirements of the RSPO P & C on a minor 

indicator(s); 


• Potential for Improvement 

Conditions and factors in PTTN that will allow it to better satisfy the requirements of the relevant 

standards; 

• Strengths, weaknesses, opportunities and threats of PTTN 

The final certification assessment was made after issuance of the Corrective Actions Taken 

statement by PTTN. The auditors have assessed the corrective actions taken and are satisfied that 

the results comply with the required standards. Based on the compliance effected, this certification 

assessment report is forwarded to RSPO for its consideration for approval. 

2.3. Certification Assessment Checklist of Principles and Criteria 

To systematically consider all the relevant RSPO P & C in the assessment, a checklist was used. 

The checklist has all the P & C against which the means employed by the management to satisfy 

them are noted. It serves the following purposes: 

- Organizes, details and clarifies the criteria that the management is expected to meet; 

- Ensures transparency in the certification process - whether the criteria have been satisfied by 

the management. 

The checklist was drawn up against the Indonesian National Interpretation of the RSPO P & C. 

2.4. Review of documents 

The PTTN documentation was submitted in June 2011 and its adequacy / completeness reviewed 

against the certification assessment checklist. 

2.5. Onsite and Follow-up interviews 

The audit team collected all the information on PTTN management for evidence of conformity to the 

RSPO P & C on a random sampling basis. 

Interviews with the respective staff, workers and some stakeholders in charge were carried out to 

ascertain the manner and circumstances in which the PTTN management system is implemented 

within the organization. 

The certification assessment was carried out from 04 to 08 July 2011. TÜV NORD Indonesia 

conducted on-site interviews with PTTN management, and palm oil mill / estate personnel to verify 

some information and resolve issues arising from reviews of the documents and PTTN 

management. 

The key points with respect to and concerned with the main topics of the interviews are summarised 

below: 

Interviewed Persons & Interview topics for Manager, Staff, Workers 

General aspects of the certification and the certification boundary; 

Chemical stores, Water management, Details on reduction of paraquat use; 

Approval documentation and status, Legal aspects related to PTTN management; 

Management Policy and Quality, SM-K3 and Environmental Management System; 

Involved personnel and their responsibilities; 

Justification of RSPO P & C; 


Monitoring and measurement of environmental performance for waste water treatment; 

Identification of environmental aspects and impacts; 

Flora, fauna, ecology and biodiversity; 

Land and conversion planting, Replanting inspection and handling of chemical packaging 

wastes, Zero burning; 

Socio economic impacts on local population, Sanitary and hygiene of employees’ housing 

complexes; 

Licenses, operation & maintenance authority and responsibility; 

IPM (Integrated Pest Management); 

HCV identification; 

Mill operation, including Inspection of FFB received, Transport of FFB, Road maintenance and 

Workshops for heavy trucks, loaders, etc. 

Interviewed Persons & Interview topics for Stakeholders 

 

 

 

Environmental protection within the estates and mill including use of pesticides, wastes and 

effluent management, Company approach to community development; 

Provision of housing, sanitation, amenities and educational support; 

Biodiversity conservation within the estate(s) and surroundings (where possibly impacted by the 

estate / mill operations), Opportunities for earning fair wages, overtime and piece-rate work. 

2.6. Resolution of Non-Compliances 

For remedying any non-compliances, the required corrective actions were discussed. PTTN was 

required to close out the outstanding any major issue(s) by responding to the Non Conformity 

Report by describing, with evidence, the corrective action(s) taken. 

In this certification assessment, the auditing team raised 4 major non-conformities and 6 minor nonconformities 

and noted some improvements to be made. The non conformities and suggested 

improvements are all documented in this report. 

2.7. Qualifications of the lead assessor and assessment team 

Lead Assessor 

: Sudarmadji 

He has a background in electrical engineering; and qualified in environmental auditing with 

sustainability management system such as EMS. He has completed training as Lead Auditor ISO 

14001, ISO 900, Occupational Health & Safety management system and CDM certification. He has 

completed training as Lead Assessor / Internal Assessor Sustainable Palm Oil by Indonesia Palm 

Oil Board and KAN (National Accreditation Committee). He is an experienced auditor in several 

audits palm oil manufacturers assessment based on ISO 14001, with a total minimum 15 days of 

audit. As team member involved in RSPO certification assessment for PT. PP London Sumatra 

Indonesia, Tbk (North Sumatera Province) in October – November 2008; and PT. Sahabat Mewah 

dan Makmur in December 2009. 


Assessor 

: Wieke Savitri 

Graduated from Agriculture Faculty in Bogor Agricultural University, then, consultant at Perkumpulan 

Untuk Peningkatan Usaha Kecil supporting by GTZ, a foundation to promote small scale enterprises 

by offering training and consultation in business management, human resources, marketing and IT. 

Before joining TUV NORD Indonesia, she spent 7 years working for Danone–Aqua, a beverage 

company, in which she held various positions, such as Quality Control Manager at Pandaan factory in 

East Java before her last position as Quality Assurance Manager at Klaten factory in Central Java. 

Her passion for environmental and social issues had led her to join Aqua Foundation even while 

working in Danone-Aqua - to develop community development programs for people living around her 

factory. She also attended a Workshop for Community-based Environmental Educators by the United 

Nations of Environmental Program in Bangkok. Finally,joined PT. TUV NORD Indonesia in September 

2006 as QMS auditor, and appointed Surabaya Branch Manager. She is an experienced auditor in 

palm oil manufacturing and oil palm estates. Attended DOEN RSPO auditors training in 2008. As 

team member involved in RSPO P &C certification assessment in PT. Perkebunan Nusantara IV, PT. 

Aek Tarum- Sampoerna Agro, PT. PP. London Sumatra Tbk, Musi Banyuasin Region and North 

Sumatra. She is also team member for RSPO Supply Chain Certification System in PT. Multimas 

Nabati Asahan, PT. Mustika Sembuluh, PT. Kerry Sawit Indonesia and PT. Sinar Alam Permai 

(Wilmar Group). 

Assessor 

: Anita Masduki 

She has a bachelor degree in Chemical Engineering from Institute Technology Bandung (ITB), and 

holds diploma in Biological Treatment from Hiroshima University, Japan, besides holds diploma in 

Environmental Management from Institute Environmental Management and Assesment in UK. She 

attended trainings such as Ozone Depleting Substance Program; Indonesia Cleaner Industrial 

Program.. She is an experienced auditor in quality management system ISO 9001, environmental 

management system ISO 14001 and OHSAS 18001 in various organization. Before joining TUV 

NORD Indonesia in 2011, she has a long time job as a consultant for 17 years in management 

system. She attended RSPO lead assessor training in 2011. 

Technical Expert 

: Dr. Hariyadi 

He holds a doctorate in Agriculture Environment from Bogor Agricultural University (IPB), and has a 

strong background and experience in the socio-environment aspects of agriculture as a lecturer in 

Agriculture and Socio-environment. Assisted in socio-environmental impact assessments and did 

research in Green Giant NPK fertilizer effects on immature oil palm growth. Has extensive experience 

in research in plant water and nutrient requirements, irrigation and fertilizer application, seedling 

selection and Integrated Pest Management. Qualified in biodiversity assessment and biodiversity 

science. Underwent auditor training in oil palm estates and palm oil mill in EMS and RSPO P & C. 

Completed training in EMS course for ISO 14001:2004 and has experience in oil palm estate waste 

management, disposal of EFB and fertilizer packaging and environmental impact on employees’ 

housing complexes. Member of the team in RSPO certification assessment of PT. London Sumatra 

Indonesia Tbk in 2008, PT. Perkebunan Nusantara IV and PT. Aek Tarum –Sampoerna Agro. 

Technical Expert 

: Ir. Basita Ginting, M.A, Ph.D 

He has bachelor degree in Agriculture Socio-economics from Bogor Agricultural University (IPB), and 

holds a doctorate in Community Development from University of The Philippines. He has a strong 

background and experience in the Evaluation for Social Impact Assessment and aspects of 

agriculture as a lecturer for Villager Sociology in Human Ecology Faculty, IPB. Has extensive 

experience in researches and consultation for more than 15 years such as Landownership structures 

and levels of living settlers in the transmigration areas; Community participation in the family welfare 

movement, etc. 

Public Summary Report PT. Tapian Nadenggan‐Langga Payung Mill Page 15

2.8. Outline of how stakeholders were interviewed 

Stakeholder consultations began with notification of the upcoming assessment in the websites of 

RSPO and PTTN. Telephone calls, e-mails, facsimiles or letters were sent to the applicable 

stakeholders. PTTN has held regular meetings with its stakeholders in accordance with its 

communication procedure “SOP Komunikasi dan Konsultasi dengan Stakeholder No. PT.TN- 

LPYM/RSPO-SOP/03 dated on 01.07.2010 “. Before the assessment proper, the audit team trawled 

the proceedings of all the meetings to update itself on the current situation and issues involved. The 

stakeholders were then invited to discuss critical issues in community development, including the 

latest progress plans for community development and the targets to be achieved. Some of the items 

on the agenda for the stakeholders’ meeting were the maintenance of infrastructure - roads, irrigation 

and drainage network, bridges and schools. In addition, to provide financial support, scholarships, 

welfare, sanitation and improved hygiene for the people living near the employees’ housing 

complexes, palm oil mill and supply bases. The discussion with stakeholders was well organized. The 

audit team then visited some of them for interviews for both positive / negative information on any 

issue in connection with the operations of the PTTN palm oil mill and supply bases. The stakeholders 

meeting conducted by assessor team and interviews without the presence of the company 

personnel/staff to obtain more comprehensive feedback. 

2.9. List of Stakeholders 

The table below lists the stakeholders involved: 

Statutory Body 

Contact Person 

(if applicable and address) 

Location 

Phone 

Kabagtapem Pemkab LaBuSel Zulkifli Kota Pinang 08126265418 

Asisten 1 Pemkab Paluta Amas Hasibuan Gunung Tua 08126569707 

Camat Halongonan Pangaribuan Dalimunthe Sipaho 082166735400 

Camat Sei Kanan Igani S.Sos Langga Payung 08126007320 

Kapolsek Sei Kanan H.A. Siregar Langga Payung 081361900838 

Kapolsek Gunung Tua M.Sijabat Gunung Tua 081363205666 

Danramil Pd.Bolak Chaidir Harahap Gunung Tua 081376629919 

Danramil Sei Kanan Hotman Langga Payung 081376809990 

DisHutBun Labuhan Batu Erwin Rantau Prapat 081376006244 

KaDisHutBun Paluta Marataib Harahap Gunung Tua 08127604281 

PPL DisHutBun Paluta Suwito Hutaimbaru 081362011819 

PPL DisHutBun Labusel Wahidin Ranto Jiur 081370568420 

Kasubbidwasnaker Disnaker I Ngarak Karo karo Rantau Prapat 081361590714 

Labuhan Batu 

Disnaker Padang Lawas Utara Olopon Simbolon Gunung Tua 081376252160 

Kasie Sengketa BPN Labuhan Sujono Rantau Prapat 081361333656 

Batu 

Kasie Sengketa BPN Pd 

Adi Irwansyah P.Sidempuan 081397549515 

Sidempuan 

Kades Situmbaga Faisal Situmbaga 081265568868 

Kades Huta Baru Nangka Saur Harahap Huta Baru Nangka 081397002196 

Kades Bt. Nadenggan Yahya Harahap Tapian 081375535550 

Kades Ujung Gading Abdul Hakim Ujung Gading 081362443310 

Kades Sihopuk Baru Rohman Sihopuk Baru 081263639096 

Kades Sihopuk Lama Sanaran Harahap Sihopul Lama 081397810180 

Kades Siancimun Parlaungan Harahap Siancimun 081396252259 

Kades Rondaman Alpian Harahap Rondaman 081396996075 


Smallholders / Outgrowers 

Contact Name 

Phone 

E mail 


H. Repelita 081361445500 

H. Dahyar 08126381123 

H. Daham 081370674461 

H. Pandu Husin 081370999977 

Independent supplier of 

Contact Name 

Location 

Phone 

materials and services (if applicable and address) 

PT.Altrak Bp.T.Mulja Tirto Medan 061-8449978 

PT.United Traktor Bp.Joseph Tarigan Medan 061-7865133 

PT.Traktor Nusantara Bp. Ilham S.Nasution Medan 061-7874455 

PT.Trakindo Bp.M.Ridwan Medan 061-7865311 

Worker Organization 

Contact Name 

Location 

Phone 


Ketua SPSI Resman Purba Pondok Ry II LPYE 085270098025 

Ketua Kop Kar Tapian Makmur Ismail Pondok Div.1 081265657266 

LPYE 

NGO 

Contact Name 

Location 

Phone 


Khatulistiwa Parulian Sihopuk Baru 082166048466 

Koran Lokal "Dinamika Rakyat" Sutan Parbonuan Hrp Hutaimbaru 081260649588 

2.10. Questions posed in interviews with stakeholders 

• Does PTTN provide information on the RSPO certification exercise including plans for safety and 

health to the public and stakeholders? 

• Does PTTN hold regular meetings on community development? 

• Does PTTN respond well to complaints in respect of RSPO P & C implementation? 

• Is there a clear grievance and complaints procedure in the company? 

• Are there any complaints on land acquired by PTTN for planting oil palm? 

• Is there any environment impact caused by the operations of PTTN? 

• Is there a procedure for settlement of conflicts communicated to the local community? 

• Does PTTN meet with stakeholders regularly to discuss issues on community development? 

• Are the workers paid in accordance with government regulations? 

• Is there a system to disseminate information quickly in emergencies to the local communities 

around the palm oil mill and supply bases? 

All the responses / comments, whether positive or negative, were recorded by the audit team by 

hand. It then verified the information by the standard operating procedure. 

. 

2.11. Date of next surveillance visit 

The next surveillance audit has to be within 12 months from the date of RSPO approval of the Initial 

Certification. The surveillance audit has to be conducted yearly for a 5-years period. 


3. ASSESSMENT FINDING 

3.1 Summary of findings 

Objective evidence was obtained separately for each of the indicators for the mill / estates in the 

certification assessment. The information was comprehensively asked from the 1 (one) mill and 3 

(three) estates, and outgrowers. 

The results for each indicator from the different operational areas were aggregated to assess the 

overall conformance of the Company's operations to it. A finding is made for each indicator. 

Nonconformities were raised against 4 (four) Major Indicators, and 6 (six ) Minor Indicators with some 

opportunities for improvement noted. Where a nonconformity / observation is assigned, 

reference is made at the end of the text of the Indicator to which it refers. 

PTTN has prepared a Corrective Active Plan and submitted evidence which has been accepted by TNI. The 

effectiveness of the corrective actions for the minor nonconformities will be checked on the next 

surveillance but the major non-compliance has to be closed within 60 days and on-site verification is 

taken on September 6, 2011. 

The following is a summary of the findings for compliance with the RSPO Principles & Criteria. 

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 and 

forms to allow for effective participation in decision making. 

PTTN has a procedure for communicating with stakeholders as decribed in “SOP Komunikasi dan 

Konsultasi dengan Stakeholder No. PT.TN-LPYM/RSPO-SOP/03 dated on 01.07.2010 All the heads 

in the mill / estates are required to provide adequate information as required by the RSPO criteria. 

There was no specific form, but PTTN provide information boxes placed in front of estate/ mill office 

and checked regularly every week. Stakeholders requests, especially on donation will be considered 

under the CSR program, or immedeately if the amount is reasonable, for example : request from 

Police Office Padang Lawas Utara about 31 flag poles dated on April 29, 2011, had been replied 

promptly on May 4, 2011, and fulfilled on July 9, 2011. Mechanisme to perform the CSR was 

conducted through the SOP No. 014/SOP.CSR/05/2011, dated 1 July 2011. The requests and 

responses for information are recorded in the „ Buku Komunikasi Konsultasi dan Tanggapan. (1.1.1). 

The response(s) are within one week after the request had been received whether they are approved 

or not. (1.1.2). The records of requests / responses will be kept for 5 (five) years as stated in “SOP 

Pengendalian dan Masa Simpan Dokumen No.PT.TN-LPYM/RSPO-SOP/04 dated on 01.07.2010. 

(1.1.3). 

Compliance Status : Full. 

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. 

Management documents on legal, environmental, health safety and social issues are publicly 

available upon request or regular reports are submitted to related stakeholders according to “SOP 

Daftar Informasi dan Stakeholder Terkait” or List of Information and Related Stakeholders (Form 

PTTN IUS dated on 01.07.2010). 

The legal documents are reported to Dinas Perkebunan (Agriculture Agency), BPN (Land Agency) 

such as: 

Izin Lokasi (Site Permit), 

Izin Usaha Perkebunan (Plantation Operation Permit) 

HGU (Land Use Title). 


HGU signboard also publicly available at the entrance gate of estate, as seen in Figure 2. 

In accordance with environmental issue, PTTN has prepared Environmental and Social Impact 

Assessment (AMDAL / UKL-UPL) and Environmental Management And Monitoring Reports (Laporan 

RKL-RPL), for Semester 2 in 2010 and submitted to BLH (Environmental Agency). Area of planting 

and production and fertilizers implementation documents are ubmitted to Agriculture Agency. 

Since PTTN is a labour-intensive company, it is required to comply with the mandatory SMK3 

(Occupational Health and Safety Management System). Progress on the Health and Safety Program 

(K3 program) is reported regularly to the Ministry of Labour of Republic of Indonesia. 

Social and financial documents such as list of number of employees and list of employee’s salary are 

submitted regularly to Dinas Tenaga Kerja & Transmigrasi (Labour & Transmigration Ministry in 

Regency & Province) and to JAMSOSTEK. Taxes documents are submitted to Regency and 

Province Goverment also to Local House of Representative (DPRD) . 

Besides the regular reports to related stakeholders, some documents are available upon request such 

as CSR program and social impact assessment for social base NGO, report of RKL/RPL for 

environmental base NGO. The stakeholder should ask the documents/ information officially according 

to “SOP Komunikasi dan Konsultasi dengan Stakeholder No. PT.TN-LPYM/RSPO-SOP/03” dated on 

01.07.2010 , the organization will respond to the request of information within one week whether it 

will be approved or not depending on the urgency. The top management is the the responsible 

person to decide it. (1.2.1). 

All the records are properly kept for the proper periods as stated in ““SOP Pengendalian dan Masa 

Simpan Dokumen No.PT.TN-LPYM/RSPO-SOP/04 dated on 01.07. e.g., safety, health and 

environment and social records 5 years and legal records indefinitely (1.2.2). Notwithstanding this, 

environmental and social data are presented during the yearly public consultation with stakeholders 

as part of its CSR program. 


Figure 2. Sign board of HGU (Land Use Title) at the entrance gate of estates 

Criterion 2.1 

There is compliance with all applicable local, national and ratified international laws and 

regulations 

PTTN keeps copies of all the legislations / regulations applicable to it from the applicable regulation 

list in “SOP Evaluasi Pemenuhan peraturan dan Persyaratan Lain (P. TN-LPYM/RSPO-SOP/06 dated 


on 01.07.2010. Evaluation is done regulary every six month by RSPO Officers in each unit which 

has to keep track of its (PTTN’s) legal requirements and make sure that they are complied with. 

Since PTTN has SM-K3 certification by Ministry of Labor of Republic Indonesia, the RSPO Officer has 

to make sure that the responsible personnel – engineers, boiler men, electricians, have the necessary 

qualifications, and the equipments – boilers and diesel generators – have the necessary certifications 

and the permits are still valid. The evidence of evaluation is recorded in “Form evaluasi kepatuhan 

kepada Peraturan, Perundangan dan Persyaratan lainnya (02/ENVD-EK-LH/X/2010)”, the last 

evaluation was done on 24.01.2011. All the documents were checked and mostly found to be in legal 

compliance. However, compliance for some regulations at regency (Kabupaten) level was 

outstanding due to the division of Kabupaten Tapanuli Selatan into Kabupaten Padang Lawas Utara 

and Labuhanbaru Selatan. Nevertheless, PTTN has taken the required steps to fulfill the outstanding 

regulation compliance as it needs time for the regency government to process them. 


Criterion 2.2 

The right to use the land can be demonstrated and is not legitimately contested by local 

communities with demonstrable rights 

Currently, there are no claims on PTTN-Langga Payung Mill by anyone based on interview with local 

communities and other stakeholders during public consultation. SMART Tbk took over the land from 

established company PT. Tapian Nadenggan in 1989, not directly from the local community. The mill / 

estate managers have ensured proper registration of their HGU certificates in register. (2.2.1). The 

boundaries of PTTN land were easily identified being demarcated by T-0 pillars, their identification 

numbers corresponding with points in the maps in HGU (Land Use Title) (2.2.2). There is mechanism 

to monitor and maintain the boundary stones periodically as shown in “Data Monitoring dan 

Perawatan Patok Batas BPN Report ”, which conducted every 6 month by HCV Officer, 

acknowledged by Estate Manager. The maintenance include cleaning and repainting the boundaries 

stones, and sometimes repairing the damaged boundaries stones or repositioning using GPS if the 

boundaries stones are relocated or missed. There is procedure for resolving any conflict over land 

refers to “Pedoman Teknis Persiapan Lahan SMART No. SOP/NP/SMART/XII/MCAR001, Chapter 

XII,. Penanganan Keluhan dan Ketidakpuasan” dated on 1 July 2010 and “SOP Penanganan Keluh 

Kesah dan Ketidakpuasan No. PT. TN-LPYM/RSPO-SOP/02, (2.2.3). 


Criterion 2.3 

Use of land for oil palm does not diminish the legal rights or customary rights of other users, 

without their free, prior and informed consent 

As far as could be ascertained, there is no customary right of other users, according to HCV 

assessment report there was no indigenous people around the mill and estates. 


Criterion 3.1 

There is an implemented management plan that aims to achieve long term economic and 

financial viability 

PTTN has long term projection (2010 – 2020) for its crop, including key performance data for its mill 

and estates as part of its long term economic planning for all corporate of SMART Tbk Group, 

including mill allocation, production of FFB (tonnage) FFB/ ha (yield); OER, by predicting inflation 

rate; exchange rate; interest rate; portion cash; dividen; non deductible expenses; working hours; 

turnover; % allowance for doubtful accounts, age of asset; price of FFB purchase. During the 

projection period the mill capacity is 60 FFB/ hour and no plan to increase the mill capacity. 



PTTN has developed projected annual replanting program until 2017 as seen in this table below: 

Unit 

Replanting a r e a (Ha) 

2011 2012 2013 2014 2015 2016 2017 

LPYE 737 289 559 161 730 639 953 

PBNE 228 262 304 523 

NRME 254 

TOTAL 737 543 559 389 992 943 1476 

Criterion 4.1 

Operating Procedures are appropriately documented and consistently implemented and 

monitored 

PTTN has Standard Operating Procedures with the best practices for its mill and estates operations. 

The mill have been certified to QMS ISO 9001 and HSE management SMK3 by the Ministry of Labour 

of Indonesia. Most of the Standard Operation Procedures are incorporated in the SM-K3 management 

The following procedures applicable and implemented within sustainable palm oil, such as : 

a. SOP for Oil Palm (containing aspects from nursery, land preparation, planting, upkeep, 

harvesting, waste management, HCV, emergency preparedness and response, and 

environmental monitoring). 

b. SOP for Palm Oil Mill (containing stages of process, boiler, power generation, water treatment, 

land application, electrical system, quality (inc monitoring of CPO parameters), dispatch and 

laboratory). 

c. Manual and SOP for Environment Management System, Health & Safety and SPO (containing 

application of pesticides, use of PPE , emergency preparadness) . 

Operational inspection for harvesting, maintenance, fertilizing, workshops, and other farming 

operations by the Vice President of Agronomy (VPA) and Regional Controler (RC) which is performed 

every 3 months. However, not all the procedures established are adequate or properly implemented. 

It was found that in Standard Operating Procedure for replanting doesn’t explain the timetable to plant 

legume cover crops. A Major non-compliance was issued. 

There was not clear which operating working instruction (WI) implemented in weeding, spraying and 

harvesting process, as there were two IK available: IK-12, IK-20, IK-21 (Rev 00, dated 02.07 2011) or 

IKPBNE/01, 02, 04 (Rev.00, dated 01.07 2011). A Major non-compliance was issued. 

Compliance Status : Not Compliant (See NCR T-01.07/2011 and T-04.07/2011) 

Criterion 4.2 

Practices maintain soil fertility at, or where possible improve soil fertility, to a level that 

ensures optimal and sustained yield 

SMARTRI, a corporate owned Research Institute has laboratory services to provide annual fertilizer 

recommendations based on soil sampling and analysis which are carried out once in 3 years while 

leaf sampling and analysis are regularly performed on yearly basis. For soil fertility and nutrient 

uptake correlation purpose, soil sampling units are arranged to coincide with the leaf sampling units. 

Parameters analyzed for soil samples consist of physical analysis ( texture), pH, organic carbon, total 

N, P and K, available P and Cation Exchange Capacity. Soil sampling is conducted in accordance 

with existing standard operating procedures (Soil Sampling Unit (SSU) Work Instruction) 

There are some agronomic practice to improve and maintain soil fertility implemented in PTTN : 

1. Using organic fertilizer 

2. Plant Legume Cover Crops 

3. Pruning and frond stacking 

4. Weeding, 


The application of POME as organic fertilizer in Langga Payung Estate based on land application 

research by Lembaga Penelitian Universitas Sumatera Utara, the last record refered to No. 01 – 

03/H5.2.3.1/PPM/K5/2011 dated on 07.01.2011. The test result of BOD range of the applied POME 

in three ponds are between 1,264 – 1,516 mg/l, still below the maximum standard 5,000 mg/l as 

required by “PerMenLH No.29/2009” The application of EFB in Langga Payung Estate in Division 

area II, IV, V and VI with the dosage 30 t/ha. Fertilizing program developed by SMARTRI covers time 

of application and type and dosage of fertilizer. Combination application of EFB and POME in Langga 

Payung Estates in recent years show that usage of chemical fertilizer was being reduced. 

Compliance Status : Full.. 

Criterion 4.3 

Practices minimise and control erosion and degradation of soils 

PTTN has soil maps for each estate (Langga Payung Estate, Paya Baung Estate, and Normark 

Estate) which categorize the classes of land suitability based on parameters of slope, texture and soil 

limiting factors. There are no fragile or problem soils being classified on all the 3 soil maps. 

PTTN has established management strategy to minimize and control erosion and degradation of soils 

by planting Legume Cover Crops, terracing on undulating to steep areas, pruning and frond stacking 

besides having routine road maintenance program. Roadmaintenance is carried out bysandstone 

(sirtu) gravelling to make the road surface hard and compact. 

PTTN established procedure for land preparation for replanting, however , it was found during the 

field visit that the replanting area in Division 1 (LPYE11B21) with slope 16 - 40 % was not 

appropriately covered by Muccuna brachteata. 

A Minor non-compliance was issued. (See NCR T-02.07/2011) 

Compliance Status : Not Compliant 

Figure 3 Soil map in Normark Estate 


Criterion 4.4 

Practices maintain the quality and availability of surface and ground water 

PTTN has an implemented water management plan, such as : reuse condensate water from Cooling 

turbine into Water Treatment, using condensate from steam boiler as water dilution mixing in CPO 

processing, minimize water leakages from water pipes in the mill and estates, using dust conveyor 

instead of using water for dust collector boiler, installing float switch to all bathrooms. Record of 

water using per ton FFB is available, there is reduction from 1.24 m3 water/ t FFB in 2008 to 1.15m3 

water/ t FFB in 2010.. BOD Analysis of surface water is tested regularly by SMARTRI laboratory, the 

last record dated on 01. 06.2011. The BOD levels and other parameters such as pH must comply with 

the local requirements in the Liquid Waste regulations in environmental decree by Province of North 

Sumatra . The BOD data are submitted six-monthly in RKL/ RPL to BAPEDALDA (Regional 

Environmental Monitoring Body). Checks on records show that all the data complied with regulation. 

The auditor team checked that there were installation of chemical traps and oil traps in the mill to 

avoid water and soil contamination around the mill. To avoid the contamination of river water, HCV or 

riparian zones are in the process of being restored along the river banks. There are several sign 

boards of HCV 4.1 to warn people for not hunting and fishing and to remind workers for not applying 

fertilizer and pesticides to the palms in the riparian zones – a 50 meter belt along the river banks on 

both sides. Palms with red x markings within the riparian zones will not be maintained. No new 

palms will be planted in the riparian zones during replanting. SOP HCV monitoring in the riparian 

zone has been established and the records is well maintained. PTTN also established SOP agrochemicals 

mixing to avoid mixing of agro-chemicals in proximity of water courses, interview with 

spraying workers confirmed that they understood the both of the SOPs well. 


Figure 4. Sign board of HCV area along the river bank. No fertilizer and pesticide applications for 

marked palms within the limit zone. 

Criterion 4.5 

Pests, diseases, weeds and invasive introduced species are effectively managed using 

appropriate Integrated Pest Management (IPM) techniques 

PTTN has formulated an Integrated Pest Management (IPM) as recorded in “Laporan Sensus”,. PTTN 

practiced incorporating cultural, biological, mechanical or physical methods, by : 

1. Identification of pests, diseases and weeds before it become an outbreak of maximum level 

2. Introducing of beneficial plants for hosts of pests. 

3. Introduction Barn Owl (Tyto alba) 

4. Planting LCC 

5. Frond stacking 

6. Minimise use of agrochemicals. 

The use of pesticides is minimized through selective spraying instead of blanket spraying for cases of 

severe infestation of weeds.. Oil Palm Leaf Eater Control includes detection, cencus, examination, 

treatments, evaluation, monitoring and organisation. Checks on records confirmed there was no 

outbreak during the last 5 years. Planting beneficial plants, such as Bunga pukul delapan (Turnera 


subulata) and air mata pengantin (Antigonom leptosus) to harbour predators of the crop pests. PTTN 

provide maps shows the planting area of beneficial plants, for example in Paya Baung Estate as seen 

in Figure 2a. 

The barn owl or Burung hantu (Tyto alba) is protected and encouraged as a natural predator of rats, 

as PTTN have not used rodenticide anymore since 2009. There is a maps shows the location of barn 

owl boxes as seen in Figure 2b. Census of Tyto Alba is conducted monthly using PVC stick and 

lenses as ‘”periscope”, for example, during July 2011 there were 28 barn owl boxes occupied by 

couples of birds and their chicks in Paya Baung Estate”. The existence of the birds observed by 

detecting the feathers, faeces, sound and bones of preys. .. 

Pesticide toxicity units (a.i. / LD 50 / FFB tonnage) are monitored to herbicides such as :Glyphosate, 

Methyl metsulfuron, Paraquat, Triclopyr TEA salt, Fluroxypir; insecticides such as:Deltramethrin; 

Fungicides such as :Benomyl. The records were well maintained. 


Figure 5a. Maps of beneficial plants in Paya Baung 

Estate 

Figure 5b. Maps of Tyto alba boxes in Paya Baung 

Estate 

Figure 5c. Cencus of Tyto alba using PVC stick and lenses as”periscope” 

Public Summary Report PT.Tapian Nadenggan –Langga Payung Mill Page 24

Criterion 4.6 

Agrochemicals are used in a way that does not endanger health or the environment. There is 

no prophylactic use of pesticides, except in specific situations identified in national Best 

Practice guidelines. Where agrochemicals are used that are categorised by the World Health 

Organization as Types 1 A or 1 B, or are listed by the Stockholm or Rotterdam Conventions, 

growers are actively seeking to identify alternatives and this is documented. 

There is a List of pesticides used and pesticides stocks is listed in the”Balance Stock Agrochemical in 

2008, 2009, 2010”., such as : Ally 20 WDG (active ingredient : Metil metsulfuron), Roll Up 480 SL 

(Isopropil amina glyphosat), those can be bought for application are in accordance with the 

Permentan No 1/2001, WHO and Rotterdam convention, are issued and distributed to Procurement 

division. Only procurement division can buy and supply the materials. PTTN has a procedure on how 

to apply agrochemicals, refers to Peraturan Menteri Pertanian No. 07/Permentan /SR.140/ /2007, or 

Regulation No. 07/ Permentan /SR.140/ 2/2007 Ministry of Agriculture Republic of Indonesia.. All the 

agrochemicals used are registered and approved by Pusat Perizinan dan Investasi Sekretariat 

Jenderal Departemen Pertanian 2008, or Invesation and Permit Center, Agriculture Department, 

Republic of Indonesia. Checks on records show that the pesticide use (including active ingredients 

used, area treated, amount applied per ha and number of applications) is appropriate for the target 

species, given at correct dosage and applied by trained personnel in accordance with the product label and 

related SOP/ Working Instruction. 

PTTN has established procedure to handling hazardous agrochemicals, and provide facilities and 

proper PPE for workers who have contact with agrochemicals, including field sprayers, fertilizer applicators, 

warehouse helper and chemical mixer. However, it was found that MSDS of Rollixone in Agrochemical 

Warehouse at Payabaung Estate, and also for other MSDS, indicated that there must be shower 

water and soap available if emergency situation happened. The shower water was available, but it 

didn’t work and there was no soap available in place. The facility doesn’t provide bin for hazardous 

wastes, sand, and fabric cotton waste as required by SOP/PBNE/LBH (Rev.00, dated 01.07.2011. A 

Major non-compliance was issued. (See NCR T-08.07/2011). 

PTTN also established procedure for handling hazardous agrochemicals spills and only trained 

persons for pesticide application technique are permitted and instructed for pesticides application in 

the field. However, it was found Working instruction regarding handling of hazardous agrochemicals 

spill (SOP /PBE/LBH (Rev,00, 1 Juli 2010) was not available in Agrochemical Warehouse of 

Payabaung Estate. MSDS for agrochemicals are translated into Bahasa Indonesia, however, the 

warehouse helper didn’t understand the meaning. Symbol of hazardous chemicals was not in 

apropriate manner and the person in charge who handle agrochemicals found has not enough 

competence in his job, i.e MSDS, symbol, and working instruction. A Major non-compliance was 

issued. (See NCR T-09.07/2011). 

Waste material from agrochemicals including pesticides containers were collected by licensed contractor 

and the records of hazardous waste manifest were well maintained. PTTN has a plan to return the 

waste container to the vendor and the mutual agreement has been signed. 

Checks on the records of agrochemicals used found that they complied with the regulation. Usage of 

paraquat in 2008, 2009, and 2010 is reduced. Regular training/ socialization for chemical sprayers 

was conducted. There was evidence of regular medical check-ups for workers involved in handling 

hazardous chemicals. PTTN has policy that pregnant and breast-feeding women are prohibited from 

working with pesticides, and there are records of socialization of the policy to the female workers. 

Compliance Status : Not Compliant.. 


Criterion 4.7 

An occupational health and safety plan is documented, effectively communicated and 

implemented 

PTTN has established a safety, health and environment policy and certified SMK3. The organisation 

structure of Panitia Pembina Keselamatan dan Kesehatan Kerja (P2K3), or Guiding Committee on 

Occupational Health and Safety, has been established. Explanation and communication of the policy 

is the responsibility of the safety engineer (SM-P2K3) who daily monitors and inspects all facilities in 

the mill and estates for emergencies. There are regular monthly meetings between the management 

and workers on health and safety issues. All the permanent employees and contract workers are 

insured under JAMSOSTEK A record of JAMSOSTEK payment installment was sighted. All 

employees, especially those in high risk work, undergo an annual health examination with the results 

submitted to Dinas Tenaga Kerja – Balai Hiperkes Dan Keselamatan Kerja Provinsi Sumatera Utara 

(Department of Labor, Province of North Sumatra). PTTN provide 3 company clinics and 1 central 

clinic and there are 2 company physicians, nurses and midwives to serve the employees and their 

dependents in estates. However, there was no record or evidence that clinical weighing scale and 

stethoscope in Payabaung clinic in good condition. A Minor non-compliance was issued. (See NCR 

T-05.07/2011). 

The physicians visit the clinic twice a week. During their absence, the daily operations are conducted 

by the nurses, sometimes include giving prescription to the patients. However, it was found that there 

was no working instruction for nurses to prescribe medicine for patients, especially antibiotic.. A Minor 

non-compliance was issued. (See NCR T-06.07/2011) 

Medical waste from Payabaung clinic, periode April-June was kept not in appropriate manner, such as 

no labelled of waste, and not kept in appropriate place. A Minor non-compliance was issued. 

All the operations have been risk assessed for obtaining SMK3 certification. The P2K3 team 

identified and analysed the risks for all routine and non-routine activities in Langga Payung POM, 

Langga Payung Estate, Paya Baung Estate and Normark Estate. However, it was found that none of 

harvesting workers wear safety helmet in Langga Payung Estate, Paya Baung Estate and Normark 

Estate because the company doesn’t provide it for workers. The risk assessment and related SOP do 

not emphasize the need to wear appropriate PPE against the risk of being hit by harvested FFB fallen 

from palms. A Minor non-compliance was issued. (See NCR T-03.07/2011) 

The P2K3 team responsible to assured that all P2K3 and K3 equipment, such as fire extinguishers, 

PPE, hydrants, P3K tool kits (medical box) are available on worksites by regular checking in the mill 

and estates. However, it was found that one of the operators was not wearing appropriate safety 

shoes as required in “IK12 rev00, dated 02.07.2010” while uprooting woody growths (Dongkel Anak 

Kayu) in Block 26. A Minor non-compliance was issued. (See NCR T-10.07/2011) 

PTTN has developed procedures for accidents and emergency preparadness The effectiveness of 

this procedure is tested every year. Workers in hazardous areas are provided training to minimize 

their risk in an annual training program on safety and health issues including training for K3 

regulations and legislations of the Republic of Indonesia, first aid training and emergency drills. 

Records of work accidents were compiled every month and cases of accidents being fully investigated 

by the company physician which had been trained Hyperkes and assigned as P2K3 officer as 

required in SMK3 report, the records are kept 5 years and regularly submitted to DISNAKER, the 

Regional Labor Department, and JAMSOSTEK for insurance claims. 

Compliance Status : Not Compliant. 

Criterion 4.8 

All staff, workers, smallholders and contractors are appropriately trained 

Mill / estate managers have identified the training needs in each section / department to organize an 

annual training program. Records of training for each employee in the mill and plantations such as 

attendance sheets, documented training plans/ programs and records of training sessions held, 


documented evidence of evaluation for staff/workers trained being kept. The training program in 2010 

- 2011 include RSPO P & C, SMK3, MSDS, First aid, PPE, Waste handling, SOP for mill and estates, 

emergency preparadness, training for nurses and midwives. The training also covers contractors and 

smallholders (independent farmers). 


Figure 6a. Emergency drills 

Figure 6b. Training for nurses and midwives 

Figure 6c. Restricted pesticides training by 

Pesticide Committee from Plantation Agency 

Figure 6d. Sprayer training by SMARTRI 

Figure 6e. MSDS training by RSPO Coordinator 

Figure 6f. Welding training by Labor Agency 


Criterion 5.1 

Aspects of estate and mill management, including replanting, that have environmental impacts 

are identified, and plans to mitigate the negative impacts and promote the positive ones are 

made, implemented and monitored, to demonstrate continuous improvement 

PTTN has conducted the assessment of environmental impacts that has been mentioned in Environmental 

Impact Assessment (AMDAL and RKL-RPL). This document has been approved by the Regional 

Environmental Impact Control Agency (BAPEDALDA) and every 6 months PTTN shall submit the 

progress reports, namely Monitoring Report of RKL-RPL to the agency. Last records of Semester II, 

July-December 2010, was sent to the Environmental Protection Agency of Padang Lawas District, 

North Sumatera Province, on February 10,2011. It was confirmed that the PTTN done this obligation, 

and kept the record of submission letter properly. The environmental parameters reported in all mill 

and estates are such as: 

Liquid wastes, recorded monthly 

Water quality in the observation well, recorded every 6 months 

Gaseous emissions are recorded every 6 months 

Soil fertility is analysed yearly 

Hazardous wastes, recorded every three months. 

There is replanting program for all 3 estates, and PTTN has identified aspects of the replanting in 

AMDAL document. 

Until now, there is no correction from BAPEDALDA regarding the report since the test result complied 

with the regulation. PTTN will revise the AMDAL documents and the consultation will be held with 

relevant stakeholders if there were change in their operation as required by regulation, for example : 

POME (palm oil mill effluent) has been permitted to be used as land application after the research 

conducted by University of North Sumatera. Any adverse impacts identified will be studied for 

mitigation. Mitigation plans for land application such as : 

regular flatbeds monitoring for POME application to avoid leakage of POME into the drains and 

rivers 

the last two or three fladbeds remained empty to avoid uncontrollable flow. 

PTTN also conduct water quality analysis from observation wells in communities housing complex 

nearby the land application location 


Figure 7a. Regular flatbeds monitoring 

Figure 7b. The last two flatbeds remained empty 


Criterion 5.2 

The status of rare, threatened or endangered species and high conservation value habitats, if 

any, that exist in the estate or that could be affected by estate or mill management, shall be 

identified and their conservation taken into account in management plans and operations. 

PTTN had a HCV assessment done on 7-10 August 2010 at Normark Estate and on 13-20 August 

2010 for Langga Payung Estate and Paya Baung Estate by HCV Team from` Environmental 

Department that consists of RSPO approved HCV assessors, such as Norman FM, Nugroho Wahyu, 

Bambang Setyaji. which has identified HCV area that cover of total area 483.98 ha. The HCV’s areas 

are recognized with HCV’s 1.1, 1.2 and 4.1.. The peer review has been conducted by independent 

consultant, Ir. Siswo, M.Si Public consultation for HCV has been done on 3-4 Novemebr 2010. The 

HCV’s area was identified with sufficient signboards that contain warnings of what people should not 

do to the protected HCVs such as prohibition to practice land burning. hunt protected animsal, illegal 

fishing that can damaged the river/ body water (poisoning, using exploding materials, illegal logging 

and disturb protected flora. Identification of HCV’s was recorded in” List of Protected Species”of 

operating procedure SOP/PBNE/KPHCV, which identified of 6 aves, 2 mammals and 1 reptil and 2 

protected flora according to CITES, IUCN or national regulation PP 7 Year 1999. Some sites of Bunga 

bangkai (Amorphopalus sp) were found during visit and protected by bamboo fences. There is HCV 

management plan and monitoring program developed by Environmental Department, while HCV 

monitoring is conducted by trained HCV officers in each estates. 


Criterion 5.3 

Waste is reduced, recycled, re-used and disposed of in an environmentally and socially 

responsible manner 

PTTN has identified all waste and pollutions sources in the mill and estates and listed them in 

accordance with its related procedure that classified the wastes as office wastes, household wastes, 

mill wastes, workshop wastes and pesticide wastes. The records of actual wastes in the mill and 

estates are documented properly in Wastes Management Plan (5.3.1). Suitable methods have been 

established to minimize the production of wastes and to minimize their environmental impacts. EFB is 

used to mulch young palms in the field near mill in Langga Payung Estate Division II, IV, V and VI with 

the dosage 30 t/ha, liquid wastes treated as in Instalasi Pengolah Air Limbah /IPAL (waste water 

treatment) to reduce their BOD and COD, with their pH monitored to the requisite standards. 

Analyses of POME for BOD, COD and pH are done regularly to ensure the parameters meet the 

standards, the last report in Semester II 2010 ( 5.3.2 and 5.3.4) showing compliance. POME is used 

as land application in the field near mill in Langga Payung Estate instead of dispatching into rivers or 

body waters. 

The hazardous waste were collected by licensed contractor and the records of hazardous waste 

manifest were well maintained. PTTN has a plan to return the waste container to the vendor and the 

mutual agreement has been signed. (5.3.3). 


Criterion 5.4 

Efficiency of energy use and use of renewable energy is maximized 

PTTN has a renewable energy program in which it continually strives to improve energy efficiency and 

use more renewable vis-à-vis fossil fuels. The mill have energy use monitoring records in kilowatt 

hours per tonne of palm product, and has program to increase energy efficiency by reducing fossil fuel 

consumption, since the generator set is only used as backup to generate electricity when the main 

turbine is down. Regular maintenance of mill engines ( e.g: boiler, sterilizer, BPV, Steam separator, 

Motor Compressor, turbine) and motor vehicles also contribute to increase energy efficiency rate. 



Criterion 5.5 

Use of fire for waste disposal and for preparing land for replanting is avoided except in 

specific situations, as identified in the ASEAN guidelines or other regional best practices 

The use of fire for any waste disposal is strictly prohibited such as in land preparation for new 

development and replanting. PTTN has a well implemented zero burning policy both in mill and 

estates. The wastes that are generated by mill and plantation activities are properly disposed off 

without burning. A notable achievement has been the total avoidance of use of fire for the disposal of 

garden wastes and packaging materials at the housing sites. 


Criterion 5.6 

Plans to reduce pollution and emissions, including greenhouse gases, are developed, 

implemented and monitored 

PTTN has identified pollution and emission sources, which comes mainly from boilers, generator sets 

and motor vehicles (5.6.1). Monitoring of their exhaust emissions is done regularly by independent 

laboratory - the smoke opacity results are recorded as part of its RKL-RPL (Environment Management 

and Monitoring) Semester Report. The parameters tested for are SO 2 , NO 2 , H 2 S and particulates as 

per the Ministry of Environment, Republic of Indonesia, regulation Peraturan Menteri Lingkungan 

Hidup No. 07 Tahun 2007. A check on the reports found that the levels complied with the standards 

(5.6.2). PTTN has a pollution and emission reduction program in which is prohibited the burning of 

EFB and domestic wastes in the mill, estates and housing complex; The domestic wastes were 

collected by contractor.. (5.6.3). There is SOP to treat POME and the records of monitoring POME 

are kept properly and were sighted. 


Criterion 6.1 

Aspects of estate 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 

PTTN has a method to monitor social information from the locals and its employees through SOP on 

Communication SOP/PBNE/Kom Rev.00 issued 1 July, 2010. and also conducted . Stakeholders 

meeting regularly every year . Some of social issue from local communitiies that has been 

responded by PTTN : provide job vacancies and job opportunities for local communities by 

conducting open and transparent employee recruitment process. Monitoring report : data of local 

communities employees was well maintained. The information is assessed and the results reported 

to the Environment Manager and concerned parties, such as the environmental impact-controlling 

agency, as a part of RKL/ RPL. The RKL/ RPL report covered the classifying the activities into 

negative and positive impact. The positives impact such as labour vacancy, cover crop planting, 

planting of main crops, maintenance of immature and mature crops. The negative impact arised from 

land clearing issues, and potential land conflict. A social impact also assessed the impact of 

company activities on the local communities. Interviews with the stakeholders indicated that the 

practice has resulted in improved relationships with the local communities. 


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 

PTTN has an effective communication and consultation procedure with smallholders and its local 

communities. It has also drawn up an external communication procedure. Consultation with 

stakeholders is done at least yearly, and minutes of the meeting on 10.06.2011 at Langga Payung Mill 

Office were sighted. The feedback from stakeholder consultation meeting that approved by 

management will become CSR and Community Development program Adjacent estate officers are 

responsible for communication with the respective parties on estate activities, while the Environment 

and CSR Department assumes overall responsibility for communication and consultation with 

stakeholders and to ensure that community programs are run effectively. A list of PTTN stakeholders 

includes the local communities, NGOs, labour union, contractors and local government. 



Figure 8. Stakeholders meeting at Langga Payung Mill Office on 10.06.2011 

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 

PTTN has a complaints, grievance and dispute procedure as stated in “SOP Penanganan Keluh 

Kesah dan Ketidakpuasan No. PT. TN-LPYM/RSPO-SOP/02, Internal complaints and grievances are 

also resolved according the Mutual Working Agreement (Perjanjian Kerja Bersama). These 

procedures have been communicated to all stakeholders at each mill / estates. Interviews during 

public consultation confirmed that they understood the procedure well. It was noted that the 

responses from stakeholders have been positive that the company respond to the complaint from 

stakeholders, such as to give priority for job vacancies to local communities than outsider. During 

visits to stakeholders, the audit team confirmed that there were no serious complaints, grievances and 

disputes at the moment. Local communities and stakeholders obey and respect the company legal 

rights, reciprocated by the company’s respect for their traditional rights. 


Criterion 6.4 

Any negotiations concerning compensation for loss of legal or customary rights are dealt with 

through a documented system that enables indigenous people, local communities and other 

stakeholders to express their views through their own representative institutions 

PTTN has developed “Pedoman Teknis Persiapan Lahan SMART No. 

SOP/NP/SMART/XII/MCAR001 dated on 01.07.2010, Chapter XII to resolve land conflict. In this 

certification assessment, the audit team studied the whole compensation mechanism, and found it 

satisfactory with no legal action being taken by any party against another. The mechanism has been 

communicated to the stakeholders. Checks on the records and interviews with the local communities 

confirmed that there is no current claim on any land. Based on HCV studies and ANDAL report there 

is no customary rights of local community. Inteviews with the Chief of Local Community confirmed that 

they have no customary rights. 



Criterion 6.5 

Pay and conditions for employees and for employees of contractors always meet at least the 

legal or industry minimum standards and are sufficient to provide decent living wages 

A policy on pay and working conditions in PTTN was established in Perjanjian Kerja Bersama or 

Mutual Working Agreement that dealt with BKS-PPSS (Badan Kerja Sama Perusahaan Perkebunan 

Sumatera). The salary scales and conditions of work are described in detail for all the positions of 

employment. PTTN follows all the legislations on working days, working time, salary levels, regional 

minimum pay and employee insurance, deductions, sickness, holiday entitlement, maternity leave, 

dismissal reasons, period of notice for termination . HRD staff inform the workers before-hand of their 

salary adjustments whenever any are in the offing. The policy about wages is also socialized in 

agreements with contractors, for example :agreeement with CV. Bintang Meriah mention that the 

contractor shall in compliance with relevant labor regulation and the contractor’s workers shall be 

covered by JAMSOSTEK.(6.5.1.and 6.5.4). Records were sighted that the pay complied with the 

regional minimum salary for North Sumatra in January 2011 as stated by Decree of Governor North 

Sumatera No.188.44/674/KPTS/2010. A daily permanent worker (Syarat Kerja Umum Harian or 

Pekerja Harian Tetap), will get Rp 1,090,425 a month, above regional minimum salary which was Rp 

1,035,500,- Employees also provided with rice allowance, for head of family is 15 kg plus 9 kg for 

wife and 7.5 kg for each children (maximum 3 children). All PTTN permanent employees are insured 

under JAMSOSTEK. All workers, if heads of families, are provided with a housing unit type G2 (48 

m2), equipped with electricty and piped clean water for washing and bath, however the test analysis 

of potable water using reverse osmosis method fulfill the requirements of potable water standard by 

PerMenkes/416/1990. There are 3 company clinics in housing site and one central clinic where sick 

employees / dependents get free treatment. The more serious cases are referred to the regional 

hospital. There are nearby state schools ( 1 kindergarten, 4 elementary schools, and 1 junior high 

school which have been donated by PTTN as CSR program (6.5.3). 


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 

PTTN has an agreement with the workers and management staff to allow them to establish a labour 

union in accordance with national legislation UU No. 13/ 2003. However, only non-staff employees 

can be Union officers to obviate any conflict of interest. The Union and management of PTTN 

negotiate the Perjanjian Kerja Bersama, or Mutual Working Agreement regularly. The minutes of 

some meetings were checked and the meetings found to be properly conducted. Union Worker also 

provided with the facility of room/ building and furniture. 


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. 

PTTN has a policy on child and female workers as stated in “Peraturan Perusahaan PT. Smart SE 

larangan mempekerjakan anak di bawah umur No. 002/SE-HRDV/03/09” dated on 13.01.2009 and 

socialized in agreements with suppliers / contractors (6.7.1). No one under 18 years of age is to be 

employed. Records of personal data of employees - age, marital status, position and rank, location of 

work, date of commencing employment - are kept. Checking the records of the last recruitment on 

26.12.2010 confirmed that no one under 18 years old has been employed - in compliance with 

Indonesian national legislation UU RI No. 13 Tahun 2003, article 68 . (6.7.2). 



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. 

A policy on equal rights regardless of race, caste, national origin, religion has been established as 

stated in “Peraturan Perusahaan PT. Smart Tbk pasal 5, SE No.146/CEO1-SE/04/2010” dated on 

13.04.2010 and also socialized in agreements with suppliers/ contractors. PTTN is an equal 

opportunity employer, with promotion mainly based on merit. The company policy regarding equal 

opportunity employer can be seen on notice boards in estates and mill office and socialized through 

meetings, morning muster. Males and females with same qualification status receive the same pay for 

the same type or same nature of job, for example administration clerk (not staff), mandor (foremen/ 

forewomen) at estates, laboratory staff at mill. Interviews with workers and checks on records found it 

conformed. 


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 

PTTN has established a policy on prevention of sexual harassment and protection of reproductive 

rights of its female workers such as : maternity leave, menstruation leave, breastfeeding permit as 

stated in “Peraturan Perusahaan pasal 5 ayat 3, SE No.145/CEO1-SE/04/2010 tanggal 13 April 2010 

perihal sosialisasi masalah sexual harassment“. The policy was socialized to the workers and 

contractors. There is gender committee establised to resolve if sexual harassment occurs. Interviews 

with female workers confirmed that they really understood the policy about sexual harassment and the 

reproductive rights. 


Criterion 6.10 

Growers and mill deal fairly and transparently with smallholders and other local businesses. 

PTTN has fair, legal and transparent agreements with its suppliers / contractors and independent 

smallholders/ outgrowers. There are transactions and purchase contracts with contractors and local 

companies on sale and purchase of FFB, FFB transport and service, maintenance and repair of mill 

equipment. The price for FFB is determined by the Head of Regional Plantation Section, Agriculture 

Department of Province North Sumatra via a mechanism based on the CPO price, kernel price (index 

K) from all palm oil producers and palm oil estates in North Sumatra. Interviews with some 

contractors confirmed that they understood the terms of their contracts well and thought them fair, 

legal and transparent andfound no grievance about the price. Payment to contractors and 

independent smallholders have always been on time as evidenced by their lack of complaints 


Criterion 6.11 

Growers and millers contribute to local sustainable development wherever appropriate 

PTTN is committed to support sustainable development of the local communities through its 

Corporate Social Responsibility programs which are presented in its Stakeholder meeting. 

Identification of projects is based on community needs, the priorities of each mill / estates and the 

budget available. The CSR programs in 2010-2011 are : 

Education: 

• Repairs Junior High Schools “SMP Satu Atap” and religious school in Langga Payung Estate, 

• Donation for Junior High School “SMP Satu Atap” in Langga Payung Estate to attend Science 

Olympiad in Medan. 

• Donation for Elementary School “SDN Mampang” and “SDN Normark” in Normark Estate. 

Religious program: 


• Gifts/ packages for mosque’s administrators. 

• Repairs mosques in Hutabaru Nangka and Sihopuk Baru 

• Donation for islamic music instruments in Hutabaru Nangka. 

• Donation for MTQ (Al Qur’an recital contest) in Sei Kanan, Halongonan and Padang Lawas 

Utara 

Social 

• Heavy equipments aid to repair road in Batang Gogar Village and Situmbaga Village. 

• Bridge repair in Siancimun Village. 

• Clean water supply for villagers. 

• Bazaar/ cheap market for local community 

Health 

• Mass circumcision for moslem boys in Sei Kanan. 

• Eye medication for students in Elementary School in SDN Sei Kanan Halongonan 

• Nutrition supplements for infants and pregnant/ breastfeeding women in Sei Kanan 

Compliance Status: Full. 

Figure 9a. CSR social programs : road maintenance in Batang Gogar Village and Situmbaga Village 

. 

Figure 9b: CSR for religion program : packages for mosque’s administrator and donation for Islamic 

music instruments 


Criterion 7.1 

A comprehensive and participatory independent social and environmental impact assessment is 

undertaken prior to establishing new plantings or operations,or expanding existing ones, and the 

results incorporated into planning, management and operations. 

There are no new plantings in PTTN supply base plantations , thus, this criterion is Not Applicable. 

Criterion 7.2 

Soil surveys and topographic information are used for site planning in the establishment of new 

plantings, and the results are incorporated into plans and operations. 


Criterion 7.3 

New plantings since November 2005, have not replaced primary forest or any area required to 

maintain or enhance one or more High Conservation Values 


Criterion 7.4 

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


Criterion 7.5 

No new plantings are established on local peoples’ land without their free, prior and informed 

consent, dealt with through a documented system that enables indigenous peoples, local 

communities and other stakeholders to express their views through their own representative 


Criterion 7.6 

Local people are compensated for any agreed land acquisitions and relinquishment of rights, subject 

to their free, prior and informed consent and negotiated agreement 


Criterion 7.7 

Use of fire in the preparation of new plantings is avoided other than in specific situations, as 

identified in the ASEAN guidelines or other regional best practice. 


Criterion 8.1 

Growers and millers regularly monitor and review their activities and develop and implement 

action plans that allow demonstrable continuous improvement in key operations. 

PTTN has committed to a process of continuous improvement by adopting the RSPO P & C and getting 

certified QMS ISO 9001 for and SMK3 for Langga Payung POM. An internal audit and management 

review is done at least yearly to evaluate the systems. Action plans have been developed for the next 

one to three years for continual improvement in key operations through quality objectives for the mill 

and also can be implemented in estates, The continual improvement program are typically similar for 

the mill and 3 estates, but the target date it depends on the estate capability and resources such as 

reducing fossil fuel consumption, reducing usage of agrochemicals especially paraquat, and has plan to 

return waste container to the vendor. 

Compliance Status : Full.

3.2. Detailed Non-Conformity Report, Corrective Actions Taken and Auditors’ Conclusions 

Non Conformity Report – T01.07/11 

Date of issued 07.07.2011 NCR issued by : Wieke Savitri 

Location 

PT. Tapian Nadenggan (Langga Payung 

Estate) 

Discussed with 

: Managers and staffs 

RSPO – Criterion : 4.1 

Operating procedures are appropriately documented and consistently implemented and 

monitored. 

Description of Finding: 

In Standard Operating Procedure for replanting doesn’t explain the timetable to plant legume cover 

crops. 

Classification Major Minor 

Corrective Action Taken: 

Had revised the Working Instruction IK/LPYE/RPL/04 “Nursery, Planting and Maintenance of 

Legumes Cover Crops” dated on 15.07.2011 by defining the timetable to plant LCC 2 weeks after 

chipping process in flat area or 2 weeks after terracing process in undulating area. 

Auditee sign: 

Auditor Comments: 

Auditor Comments and Conclusion 

To check in next verification visit 

Appropriate action not taken 

Appropriate action taken 

Corrective action in compliance with the requirement 

Date of verification: 06.09.2011 

Auditor(s) sign: 




Location 

PT. Tapian Nadenggan (Langga Payung 

Estate) 



Practices minimise and control erosion and degradation crisis. 



It was found during the field visit that the replanting area in Division 1 (LPYE11B21) with slopes of 

16-40% was not appropriately covered with Mucuna bracteata 



Mucchuna brachteata has been planted in Division 1 (LPYE11B21) since July to August 2011 for 

total area 37.83 ha as required by Working Instruction IK/LPYE/RPL/04 dated on 15.07.2011 by 

monitoring the rainfall. 

Auditee sign: 












Location 

PT. Tapian Nadenggan (Langga P ayung 

Estate, Paya Baung Estate), Normark 

Estate) 




An occupational health and safety plan is documented, effectively communicated and and implemented. 


None of harvesting workers wear safety helmet in Langga Payung Estate, Paya Baung Estate and 

Normark Estate because the company doesn’t provide it for workers. The risk assessment and 

related SOP do not emphasize the need to wear appropriate PPE against the risk of being hit by 

harvested FFB fallen from palms.. 



1. Had revised the “Hazard Identification Risk Assessment and Control (HIRAC) and 

WorkingInstruction of Fruit Harvesting IK/PBNE/PNN/01” by providing the appropriate PPE 

for workers 

2. Had made Purchase Order and distributed safety helmets and goggles to the workers 

Auditee sign: 







Date of verification:06.09.2011 




Date of issued 07.07.2010 NCR issued by : Anita Masduki 

Location 


(Payabaung Estate) 





monitored 


There was not clear which operating working instruction (WI) implemented in weeding, spraying 

and harvesting process, as there were two IK available: IK-12, IK-20, IK-21 (Rev 00, dated 02.07 

2011) or IKPBNE/01, 02, 04 (Rev.00, dated 01.07 2011 



1. Had revised the Working Instruction for weeding IK/PBNE/PNN/01; spraying 

IK/PBNE/TBM/03and harvesting process IK/PBNE/TBM/04 rev.01 dated on 15.07. 

2. Had withdrawn all the obsolete documents and distributed those that had been currently 

revised. 

Auditee sign: 












Location 







monitored 


There was no record or evidence that clinical weighing scale and stethoscope in Paya Baung clinic 

are in good condition. 



1. Had carried out calibration for all weighing scales and rectification for stethoscopes 

2. Had updated the status of the master list of equipment. 

Auditee sign: 












Location 







monitored 


There was no working instruction for nurses to prescribe medicine for patients, especially antibiotic. 



Had established Internal Memo regarding medicine labeling, i.e: prescription for medicine with red 

label should only be given under medical doctor’s supervision supervision. 

Auditee sign: 












Location 







monitored 


Medical waste from Payabaung clinic, periode April-June was kept not in appropriate manner, such 

as no labelled of waste, and not kept in appropriate place. 



1. Medical waste from period April – June 2011 had been sent to Medical Center Padang Halaban 

before it burned in incinerator at Rantau Parapat Hospital 

2. Had established rain and leakage proof medical waste storage which is properly locked to 

avoid unintended usage.. 

Auditee sign: 







Date of verification: 





Location 







no prophylatic use of pesticides, except in specific ituations 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. 


Working instruction regarding handlling of hazardous agrochemicals spill (SOP /PBE/LBH 

(Rev,00, 1 Juli 2010) was not found in Agrochemical Warehouse of Payabaung Estate. Symbol of 

hazardous chemicals was not in apropriate manner and the person in charge who handle 

agrochemicals found has not enough competence in his job, i.e MSDS, symbol, and working 

instruction. 



1. Working Instruction regarding handing of hazardous agrochemicals spill has been placed in 

Agrochemical Warehouse. 

2. Hazardous chemical symbols and MSDS have been positioned in proper place. 

3. Had conducted refresher training for warehouse helpers on 18.07.2011. 

Auditee sign: 












Location 







no prophylatic use of pesticides, except in specific ituations 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. 


MSDS of Rollixone in Agrochemical Warehouse at Payabaung Estate, and also for other MSDS, 

indicated that there must be shower water and soap available if emergency situation happened. 

The shower water was available, but it didn’t work and there was no soap available in place. The 

facility doesn’t provide bin for hazardous wastes, sand, and fabric cotton waste as required by 

SOP/PBNE/LBH (Rev.00, dated 01.07.2011. 



1. Emergency shower has been equipped with soap and water tank which can always operate if 

emergency situation happened. 

2. Had provided hazardous waste bin and fabric cotton as required under SOP/PBNE/LBH. 

Auditee sign: 












Location 






An occupational health and safety plan is documented, effectively communicated and and implemented. 


One of the operators was not wearing appropriate safety shoes as required in IK12 rev00, 

dated 02.07.2010 while uprooting woody growths (Dongkel Anak Kayu) in Block 26. 



. 

Had provided and distributed appropriate safety shoes for weeding workers as required under IK12. 

Auditee sign: 










Table 7: Summary of findings by RSPO Criterion 

Audit type 

Certification Assessment 

Criterion Audited 

Compliance 

NC NC NC 

Major Minor Total 

1.1 Yes 

1.2 Yes 

2.1 Yes 

2.2 Yes 

2.3 Yes 

3.1 Yes 

4.1 No 2 2 

4.2 Yes 

4.3 No 1 1 

4.4 Yes 

4.5 Yes 

4.6 No 2 2 

4.7 No 5 5 

4.8 Yes 

5.1 Yes 

5.2 No 

5.3 Yes 

5.4 Yes 

5.5 Yes 

5.6 Yes 

Audit type 

Certification Assessment 

Criterion Audited Compliance 

NC NC NC 

Major Minor Total 

6.1 Yes 

6.2 Yes 

6.3 Yes 

6.4 Yes 

6.5 Yes 

6.6 Yes 

6.7 Yes 

6.8 Yes 

6.9 Yes 

6.10 Yes 

6.11 Yes 

7.1 N/A 

7.2 N/A 

7.3 N/A 

7.4 N/A 

7.5 N/A 

7.7 N/A 

7.7 N/A 

8.1 Yes 

Total of Nonconformities 4 6 10 

3.3.1. Noteworthy observations 

There is no land conflict in this area, the relationship between PTTN and local 

communities and other stakeholders is in harmony. 

 

 

 

 

 

 

The mill is certified to ISO 9001 and SMK3, making it easier for PTTN to progress to 

RSPO Certification; 

The use of paraquat is being reduced; 

PTTN maintains a 50 m riparian strip along its rivers as conservation area; 

PTTN has a zero burning policy for pollution control in its estates; 

EFB used for mulching young palms, besides, treated POME also applied to the fields as 

organic fertilizer 

CSR programs have improved sustainable development of the local communities. 

3.3.2. Some Recommendations for Improvement in the Mill and Estates: 

Langga Payung POM & Estate 

 

 

 

Correction factor should be considered in status label of monitoring devices to ensure that 

the amount of deviation in a measurement that is accounted for in the calibration process. 

Data of dominant diseases should be classified between workers and family of workers to 

identify work-related diseases/ disorder or common diseases. 

Medical waste bin should be covered. 


Some records should be signed by authorized person. 

Waste pond should be bordered by fences. 

Agrochemical in warehouse should be placed on pallets or shelves not directly on the floor. 

The same documents/ procedures at mill and estates should be in line not overlapping. 

Paya Baung Estate : 

Report of RKL-RPL should follow the Technical Manual of RKL-RPL issued by related 

Ministry. 

A cheklist should be established to monitor FFB transporter equipped with safety net, ropes, 

PPE as required by SPK No.PBNE/JKTO/01/11/001-ATBS dated onl 03.01.2011. 

Normark Estate 

Benchmark for Normark Estate Office at coordinate 1°50'57" N, 99°59'53" should be 

adjusted. . 

List of Fire Fighting Equipments should be provided with pump capacity data, e.g; Suction 

head (M), L/second. 

CSR activities have been carried out in social, economical , educational and health sectors 

partially not comprehensively to all surrounding villages, it should be better if it can be 

improved into Community Development Program by involving the community (PRA, 

Participative Rural Appraisal). 

3.4. Issues raised by stakeholders and findings of the assessment team 

The audit team did not receive any major complaints in the stakeholder meeting on environmental 

impacts and social performance of the mill and estate operations. Most of the stakeholders agreed 

that PTTN has had a positive influence in the area. Interviews were used to obtain feedback – 

whether positive or negative - from the stakeholders, for which the audit team had prepared some 

questions. The questions are given in Section 2.10. 

A stakeholder meeting was held on June 10, 2011 by PTTN to obtain feedback - positive or 

negative – on its RSPO Certification Assessment. The minutes were taken along with PTTN 

responses to the queries made. Most of the stakeholder comments on RSPO certification were 

positive, and support RSPO certification for PTTN, under which were usually requests for help. 

TUV NORD led Public consultation meeting with stakeholders on July 05, 2011. The 

stakeholders meeting conducted by assessor team without the presence of the company 

personnel/staff to obtain more comprehensive feedback. 

Some comments are given below:The CSR Program for Budgeting year 2012 and “ expectation 

of stakeholders” should be monitored, e.g : 

- Providing school buses 

- Donation for elder people 

- Scholarship for student in need 

- Build facility for public bath and wash 

- Building passing road to Normark 

- Community Development for raising cattle. 


3.5 Certified organization’s acknowledgement of internal responsibility 

Please sign on the certification assessment and confirm acceptance of this assessment report, 

including its findings. The company General Manager and Senior Manager will sign for the certification 

assessment report. The complete signatures can be seen in Section 3.6. 

Public Summary Report PT. Tapian Nadenggan ‐Langga Payung Mill Page 48

3.6 Formal sign-off of assessment findings 

Medan, 

September.2011 

Head of Environment and CSR 

Coordination 

Signed for and on behalf of 


CEO PSM 1 

Ismu Zulfikar 

Antonius Costan 

Jakarta, 

September.2011 

Signed for and on behalf of 

PT. TÜV NORD Indonesia – System Certification Management 

Auditor 

: Wieke Savitri 


ANNEX A : 

RSPO SUPPLY CHAIN CHECKLIST FOR LANGGA PAYUNG MILL (MASS BALANCE MODUL) 

PT. Tapian Nadenggan, Langga Payung POM is doing some efforts to comply with the supply chain 

system procedures as required in the RSPO certification. The company has set the supply chain system 

applied in Langga Payung POM called Mass Balance. 

STANDARD SOP/Policy/Others Records/Evidence 

E.1.Documented Procedure 

.1.1 

a) Complete and up to date 

procedures covering the 

implementation of all the 

elements in these 

requirements. 

There is procedure SOP Supply 

Chain 

Declaraton 1 

Declaration 2 

The SOP is available on site. 

b) The name of the person 

having overall responsibility 

for and authority over the 

implementation of these 

requirements and 

compliance with all 

applicable requirements. 

This person shall be able to 

demonstrate awareness of 

the facilities procedures for 

the implementation of this 

standard. 

There is Decree letter assignment 

for SCCS Officer 

The Decree letter is available on site. 

1.2 The facility shall have 

documented procedures for 

receiving and processing 

certified and non-certified FFBs. 

E.2 Purchasing and goods in 

2.1 The facility shall verify and 

document the volumes of 

certified and non-certified FFBs 

received. 

FFBs has been separated based on 

their sources, whether from PTTN 

own estates (sustainable product) 

and the FFB from supplier (Nonsustainable). 

List of documented 

procedures for receiving and 

processing certified and noncertified 

FFB are : 

SOP Supply Chain 

SOP Receiving FFB 

SOP Dispatch CPO 

SOP FFB Processing 

WI Receiving FFP 

WI Dispatch CPO 

There is SOP Receiving FFB 

The records of documented volumes of 

certified and non certified FFBs can be 

traced down in: 

Laporan Penerimaan TBS Certified 

Tahun 2011 (Certified FFB Receiving 

Report 2011) 

Laporan Penerimaan TBS Non 

Certified Tahun 2011(Non-certified 

FFB Receiving Report 2011) 

Laporan Produksi CPO Certified 

Tahun 2011 (Certified CPO 

Production Report 2011) 

Laporan Produksi CPO Non Certified 

Tahun 2011(Non-certified CPO 

Production Report) 

Laporan Pengiriman CPO Certified 

Tahun 2011(Certified CPO Dispatch 

Report 2011) 

Laporan Pengiriman Non CPO 


CPO Dispatch Report 2011) 

The records of documented volumes of 

certified and non certified FFBs can be 

traced down in: 

Laporan Penerimaan TBS Certified 

Tahun 2011 (Certified FFB Receiving 

Report 2011) 

Laporan Penerimaan TBS Non 


FFB Receiving Report 2011) 



2.2 The facility shall inform the CB 

immediately if there is a 

projected overproduction. 

Can be traced down in Production Budget 

Report 

E.3 Record keeping 

3.1 The facility shall maintain 

accurate, complete, up-to-date 

and accessible records and 

reports covering all aspects of 

these requirements. 

All documents and records have 

been in controlled according to SOP 

Pengendalian Dokumen dan 

Rekaman (SOP Document 

Control and Record Control) 

The records have been checked. 

3.2 Retention times for all records 

and reports shall be at least five 

(5) years. 

3.3 a) The facility shall record and 

balance all receipts of 

RSPO certified FFB and 

deliveries of RSPO certified 

CPO, PKO and palm kernel 

meal on a three-monthly 

basis. 

Declaration 5 

Retention times of all records have 

been determined in SOP 

Pengendalian Dokumen dan 

Rekaman (SOP Document 

Control and Record Control) 

. 

The records have been checked. 

Can be trace down in CPO Production 

Report 3 Monthly Basis 

b) All volumes of palm oil and 

palm kernel oil that are 

delivered are deducted 

from the material 

accounting system 

according to conversion 

ratios stated by RSPO. 

Can be trace down in CPO Stock Report 

and in CPO Dispatch Report 

c) The facility can only deliver 

Mass Balance sales from a 

positive stock. However, a 

facility is allowed to sell 

short. 

Declaration 6 

Can be trace down in CPO Stock Report 

and in CPO Dispatch Report 

3.4 The following trade names 

should be used and specified in 

relevant documents, e.g. 

purchase 

Can be trace down in Sales contract 

E.4 Sales and good out 

4.1 The facility shall ensure that all 

sales invoices issued for RSPO 

certified products delivered 

include the following information: 

a) The name and address of the 

buyer; b) The date on which the 

invoice was issued; c) A 

description of the product, 

including the applicable supply 

chain model (Segregated) d) 

The quantity of the products 

delivered; e) Reference to 

related transport documentation. 

Declaration 4 

The available evidence is the invoice of oil 

delivery in form of Delivery Order (DO) 

document issued for every oil delivery. 

The information written on the Delivery 

Order document are: the invoice issue 

date, name and address of buyer, ordered 

product details, and the transportation 

system for product transportation. 



E.5 Training 

5.1 The facility shall provide the 

training for all staff as required to 

implement the requirements of 

the Supply Chain Certification 

Systems. 

Procedure for training is described in 

SOP Training Human Resources 

Record of Training SCCS is available. 

E.6 Claims 

6.1 The facility shall only make 

claims regarding the use of or 

support of RSPO certified palm 

oil that are in compliance with 

the RSPO Rules for 

Communication and Claims. 

Declaration 7 


Annex B : 

D r a f t C E R T I F I C A T E 

In accordance with TÜV NORD Indonesia procedures, a certificate is hereby awarded 


Head Office: 

Jl. A Plaza BII Tower 2, 10th floor, Jl. MH. Thamrin No.51 Kav. 22 

Jakarta 10350 

Indonesia 

Langga Payung Palm Oil Mill 

Mill Location 


Kabupaten Padang Lawas Utara, Nortth 

Sumatera 

GPS location 

Longitude (E) Latitude (N) 

99º 53' 13'' E 1º 39' 16'' N 

In recognition of the fact that it applies a Palm Oil Management System for Sustainable Palm 

Oil Production according with the 2008 National Interpretation of RSPO Principles and 

Criteria of the Republic of Indonesia for producing the following volumes of CPO and PK: 

Production of Crude Palm Oil and Palm Kernel 

CPO claimed 

36,906.99 t / year 

Palm Kernel claimed 

9,492.28 t/ year 

Certificate Registration No: TNI – RSPO – G - 1201 

Audit Report No. P &C-G-122 

Issued date of Certificate : RSPO approval date Valid Certificate : - 

President Director 

This certification was carried out in accordance with the TÜV NORD Indonesia auditing and certification procedures and is 

subject to regular surveillance audits. PT. TÜV NORD Indonesia is a subsidiary of TÜV NORD CERT GmbH 

Langemarckstrasse 20 D - 45141 Essen, Germany 


Annex to Certificate – RSPO (Supply Base) 

Certificate Registration No: TNI-RSPO-G-1201 

The scope of certification of Mill and Supply base 

cover is 

Estate 

Location 

FFB 

Production 

(t) 

GPS Coordinates 

Longitude (E) Latitude (N) 

Langga 

Payung 

Estate 

Paya 

Baung 

Estate 


Kabupaten Padang Lawas Utara, 

North Sumatera 

Ds. Huta Baringin, Simangambat 

Kabupaten Padang Lawas Utara, 


88,661.98 

47,943.19 

99º 53' 22'' E 1º 38' 55'' N 

99º 58' 31'' E 1º 37' 12'' N 

Normark 

Estate 

Ds. Normark, Kota Pinang, 

Kabupaten LabuhanbatuSelatan, 


32,503.61 

99º 59' 53'' E 

1º 50' 57'' N 


Annex C : Certification Assessment Plan 

Client: 

PT. Tapian Nadenggan (SMART Tbk) 

Address: Plaza BII Tower 2, 10th floor, Jl. MH. Thamrin No.51 Kav. 22 Jakarta 10350- 

Indonesia 

MR Name, Pos.: Mr. Ismu Zulfikar 

Number of Mills: 1 Number of estate(s): 3 Order No. - Business No. - 

Mill(s), Location 

Estates, Locations 

- Langga Payung POM, Kab. Padang 

Lawas Utara, Sumatera Utara; 

Standard: RSPO P&C (Principles & Criteria) May 2008; 

1. Langga Payung Estate, Kab. Padang Lawas Utara, 

Sumatera Utara 

2. Paya Baung Estate, Kab. Padang Lawas Utara, 


3. Normark Estate, Kab. Labuhanb atu Selatan, 


Type of Certification Audit Audit date: 4-8.07.2011 

Lead 

Auditor: 

Auditor(s): 

Sudarmadji (SD) Expert: Hariyadi (HR), Basita Ginting 

(BG) 

Wieke Savitri (WS), Anita Audit days on-site: 

5 days (with traveling) 

Masduki (AM) 

Date / Time 1) Site / Shift / Organizational Unit Auditor 

(Abbrev.) 

Interviewpartner 

2) 

Day – 1: 04.07.2011 Traveling to site location from Medan to Rantau Prapat 

Day – 2: 05.07.2011 Langga Payung POM & Estate Office 

08:00-08:30 Opening meeting 

08:30 – 12:00 

- Sites: Langga Payung POM 

Office for all documents 

(legal, financial, production, 

environment, social) PT. 

Tapian Nadenggan (POM, 

estates : Langga Payung, 

Paya Baung and Normark 

Estate) 

SD, WS, 

AM, HR, 

BG 

SD, 

WS,AM, 

HR, BG 

RSPO 

team 

Requirements 

Introduction team and fine tune audit 

plan (if necessary) 

- General issues for RSPO 

certification assessment 

- The SPO documentations and 

records 

- Environmental Policy 

- Justification for RSPO principles 

and criteria 

- Principle – 1: 1.1, 1.2 

- Principle - 2: 2.1 

- Principle – 3: 3.1 

12:00 – 13:30 Break and lunch : 

Stakeholders contacted at Langga Payung Estate, Paya Baung Estate, Normark Estate 

13:30 – 

17:00 

Langga Payung Office : 

SD, WS, 

AM, HR, 

BG 

-RSPO 

team 

17:00: End of day assessment 

Mr. Sudarmadji and Mr. Basita Ginting travelling to Normark Estate 

Mrs. Anita to Paya Baung Estate 

- Consultation, Interviews 

stakeholders (Indigenoes people , 

NGO, Chief of village) 

- Housing facilities 

- Public facilities 

- School, Health program, 

- Social Responsibility program 

- Workshop, Clinic 


Date / Time 1) 

Site / Shift / Organizational 

Unit 

Auditor 

(Abbrev.) 

Days – 3: 06.07.2011 Langga Payung Estate 


2) 

Requirements 

Langga Payung : 

08:00 -12:00 

Estate Operations 

12:00 – 13:00 Break and lunch 

Langga Payung Mill: 

13:00-17:00 

Mill Operations 

17:00: End of day assessment 

WS, HR 

WS, HR 

-RSPO team 

RSPO team 

- Flora, fauna, ecology and 

biodiversity 

- Land and conversion planting 

- Decreased paraquat use 

- HCV identification 

- IPM (Integrated Pest Management) 

- Replanting and handling of 

chemical packaging wastes 

- Zero burning 

- Principle - 4 : 4.1, 4.2, 4.3, 4.4, 

4.5, 4.6, 4.7, 4.8 

- Principle – 5 : 5.1, 5.2, 5.5 

- Principle – 6 : 6.1, 6.2, 6.3, 6.5, 

6.6, 6.7, 6.8, 6.10, 6.11 

- Principle – 7 

- Principle – 8 : 8.1 

- Quality, SM-K3 and Environmental 

Management System. 

- Involved personnel and 

responsibilities 

- Chemical stores. 

- Monitoring and measurement of 

environmental performance of 

waste water treatment plant. 

- Mill operation including inspection 

of incoming FFB, FFB transport, 

road maintenance and workshops 

for heavy trucks, loaders, etc. 

- Principle - 4 : 4.1, 4.4, 4.7, 4.8 

- Principle – 5 : 5.4, 5.6 

- Principle – 6 : 6.1, 6.2, 6.3, 6.5, 

6.6, 6.8, 6.10, 6.11 



Date / Time 1) Site / Shift / 

Organizational Unit 

Days – 3: 06.07.2011 Normark Estate 

Auditor 

(Abbrev.) 


2) 

Requirements 

08:00-12:00 

Sites: Normark Estate 

office : Estate oprations 

SD, BG 



biodiversity 








- Principle - 4 : 4.1, 4.2, 4.3, 4.4, 

4.5, 4.6, 4.7, 4.8 

- Principle – 5 : 5.1, 5.2, 5.5 

12:00 -13:30 Break and lunch 

13:30 – 17:00 

 

Estate operations 

SD, BG 


- Principle – 6 : 6.1, 6.2, 6.3, 6.5, 

6.6, 6.7, 6.8, 6.10, 6.11 



17:00: End of day assessment Traveling to site location Langga Payung Estate 

Date / Time 1) Site / Shift / Organizational Unit 

Days – 3: 06.07.2011 Paya Baung Estate 

Auditor 

(Abbrev.) 


2) 

Requirements 

08:00-12:00 Sites: Payabaung Estate office AM RSPO team 


13:30 – 17:00 Estate operations 

AM RSPO team 


biodiversity 








- Principle - 4 : 4.1, 4.2, 4.3, 4.4, 

4.5, 4.6, 4.7, 4.8 

- Principle – 5 : 5.1, 5.2, 5.5 

- Principle – 6 : 6.1, 6.2, 6.3, 6.5, 

6.6, 6.7, 6.8, 6.10, 6.11 



17:00: End of day assessments 


Date / Time 1) Site / Shift / Organizational Unit 

Day- 4: 07.07.2011 Langga Payung Estate 

Auditor 

(Abbrev.) 


2) 

Requirements 

09:00 – 12:00 Reporting and 

discussion 


SD, WS, 

AM, HR, 

BG 

13.30 -.15.00 Closing meeting and 

Presentation of audit 

finding 

End of day assessment 

SD, WS, 

AM, HR, 

BG 


Day – 5: 08.07.2011 Traveling to Medan and back to Jakarta 

End of Certification Assessment RSPO P & C Audit

RSPO CERTIFICATION ASSESSMENT PUBLIC SUMMARY REPORT

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