RSPO CERTIFICATION ASSESSMENT PUBLIC SUMMARY REPORT
RSPO CERTIFICATION ASSESSMENT PUBLIC SUMMARY REPORT
RSPO CERTIFICATION ASSESSMENT PUBLIC SUMMARY REPORT
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Making our world safer<br />
<strong>RSPO</strong> <strong>CERTIFICATION</strong> <strong>ASSESSMENT</strong><br />
<strong>PUBLIC</strong> <strong>SUMMARY</strong> <strong>REPORT</strong><br />
Date of assessment<br />
04 to 08.07.2011<br />
PT. TUVNORD Indonesia<br />
System Certification Management<br />
Has assessed<br />
PT. Tapian Nadenggan<br />
Palm Oil Mill and Supply Base for Compliance to <strong>RSPO</strong> Principles and Criteria for<br />
Sustainable Palm Oil Production<br />
Langga Payung POM and Supply Base<br />
CPO 36,906.99 t & PK 9,492.28 t<br />
Revision 3<br />
Report prepared by<br />
Wieke Savitri<br />
Public Summary Report PT. Tapian Nadenggan –Langga Payung Mill Page 1
TABLE OF CONTENTS<br />
Summary 3<br />
Abbreviations Used 3<br />
1. SCOPE OF THE <strong>CERTIFICATION</strong> <strong>ASSESSMENT</strong> 4<br />
1.1 National Interpretations 4<br />
1.2 Scope of Certification 4<br />
1.3 Location 5<br />
1.4 1. Areas of estates<br />
2.Description of Supply Base<br />
7<br />
7<br />
3 Company Background and Ownership History 7<br />
1.5 Dates of Planting and Replanting Cycle 9<br />
1.6 Other Certifications Held 9<br />
1.7 Time-Bound Plan for Other Certification Units 10<br />
1.8 Approximate Tonnages Certified 11<br />
1.9 Date Certification Issued and Scope of Certificate 11<br />
2. <strong>ASSESSMENT</strong> PROCESS 11<br />
2.1 Certification Body 11<br />
2.2 Assessment Methodology 12<br />
2.3 Certification assessment checklist of principles and criteria 13<br />
2.4 Review of documents 13<br />
2.5 On-site and Follow-up interviews 13<br />
2.6 Resolution of Corrective actions 14<br />
2.7 Qualifications of lead assessor and assessment team 14<br />
2.8 Outline of how stakeholders were interviewed 16<br />
2.9 List of stakeholders 16<br />
2.10 Questions posed in interviews with stakeholders 17<br />
2.11 Date of next surveillance visit 17<br />
3. <strong>ASSESSMENT</strong> FINDINGS 15<br />
3.1 Summary of findings 18<br />
3.2 Detailed Non-Conformity Report, Corrective Actions taken and Auditors’<br />
36<br />
Conclusions<br />
3.3 1.Noteworthy positive components 46<br />
2. Some Recommendations for Improvement to the Mill and Estates 46<br />
3.4 Issues raised by stakeholders and findings of the assessment team 47<br />
3.5 Certified organization’s acknowledgement of internal responsibility 48<br />
3.6 Formal sign-off of assessment findings 49<br />
ANNEXES<br />
A Report SCCS-Langga Payung Mill 50<br />
B Draft <strong>RSPO</strong> Certificate 53<br />
C Certification Assessment Plan 55<br />
Public Summary Report PT. Tapian Nadenggan –Langga Payung Mill Page 2
Summary<br />
PT. TÜVNORD Indonesia (TNI) – Certification Body is a member of the worldwide German TÜV<br />
NORD group. TNI has performed a comprehensive certification assessment of PT. Tapian<br />
Nadenggan, and concludes that its operations comply with the <strong>RSPO</strong> Principles and Criteria<br />
Indonesia National Interpretation (<strong>RSPO</strong> INA-NIWG) version May 2008. TNI therefore recommends<br />
that PT. Tapian Nadenggan be approved as a producer of <strong>RSPO</strong> Certified Sustainable Palm Oil.<br />
This certification assessment is on Langga Payung Mill producing a total 36,906.99 t/year CPO and<br />
9,492.28 t/year PK*.<br />
(*January-December 2010)<br />
Abbreviations Used<br />
AMDAL<br />
ANDAL<br />
Bapedalda<br />
B3<br />
BOD<br />
BPN<br />
Analisis Mengenai Dampak Lingkungan (Environmental Impact Study Report)<br />
Analisis Dampak Lingkungan (Environmental Impact Analysis Report)<br />
Badan Pengendalian Dampak Lingkungan Daerah (Regional Environmental Impact<br />
Control Agency )<br />
Bahan Berbahaya dan Beracun (Toxic and Hazardous Materials<br />
Biological Oxygen Demand<br />
Badan Pertanahan Nasional (National Land Agency)<br />
CDM Clean Development Mechanism (Mekanisme Pembangunan Bersih )<br />
COD<br />
CPO<br />
CSR<br />
DAR<br />
Deperindag RI<br />
EFB<br />
FFA<br />
FFB<br />
GPS<br />
ha<br />
HCV<br />
HGU<br />
HSE<br />
IPM<br />
JAMSOSTEK<br />
K3<br />
KAN<br />
KLH<br />
Chemical Oxygen Demand<br />
Crude Palm Oil<br />
Corporate Social Responsibility<br />
Deutscher Akkreditierungs Rat (German Accreditation Body)<br />
Departemen Perindustrian dan Perdagangan (Department of Industry and Commerce of<br />
the Republic of Indonesia)<br />
Empty Fruit Bunch(es)<br />
Free Fatty Acid(s)<br />
Fresh Fruit Bunch(es)<br />
Global Positioning System<br />
Hectare(s)<br />
High Conservation Value<br />
Hak Guna Usaha (Land UseTitle)<br />
Health Safety Environment (Kesehatan, Keselamatan dan Lingkungan)<br />
Integrated Pest Management<br />
Jaminan Sosial Tenaga Kerja (Labour Social Insurance)<br />
Keselamatan dan Kesehatan Kerja (Occupational Safety and Health)<br />
Komite Akreditasi Nasional (The Indonesian Accreditation Committee)<br />
Kementrian Lingkungan Hidup (Ministry of Environment)<br />
Public Summary Report PT. Tapian Nadenggan –Langga Payung Mill Page 3
KUD<br />
LCC<br />
LD 50<br />
LSM<br />
MSDS<br />
OER<br />
P2K3<br />
P3K<br />
Permenaker RI<br />
PK<br />
PKO<br />
PMA<br />
POME<br />
PPE<br />
PTTN<br />
PTSKU<br />
RKL-RPL<br />
SMK3<br />
SOP<br />
SPSI<br />
TNI<br />
UKL/UPL<br />
Koperasi Unit Desa (Village Cooperative)<br />
Legume Cover Crop<br />
Lethal Dosage (50% mortality of tested population)<br />
Lembaga Swadaya Masyarakat (NGO(s))<br />
Material Safety Data Sheet(s)<br />
Oil Extraction Rate<br />
Panitia Pembina Keselamatan dan Kesehatan Kerja (Guiding Committee of<br />
Occupational Safety and Heath)<br />
Pertolongan Pertama Pada Kecelakaan (First Aid Emergency)<br />
Peraturan Menteri Tenaga Kerja (Regulation(s) of the Ministry of Labour of Republic of<br />
Indonesia)<br />
Palm Kernel<br />
Palm Kernel Oil<br />
Penanaman Modal Asing (Foreign Investment)<br />
Palm Oil Mill Effluent<br />
Personal Protective Equipment<br />
PT. Tapian Nadenggan<br />
PT. Satya Kisma Usaha<br />
Rencana Kelola Lingkungan dan Rencana Pemantauan Lingkungan (Environmental<br />
Management Plan – Environmental Monitoring Plan)<br />
Sistim Manajemen – Keselamatan dan Kesehatan Kerja (Management System of<br />
Occupational Safety and Health)<br />
Standard Operating Procedure(s)<br />
Serikat Pekerja Seluruh Indonesia (Worker Union)<br />
PT. TÜV Nord Indonesia<br />
Upaya Kelola Lingkungan/Upaya Pemantauan Lingkungan (Environmental Management<br />
Efforts and Environmental Monitoring Efforts)<br />
1. SCOPE OF THE <strong>CERTIFICATION</strong> <strong>ASSESSMENT</strong><br />
1.1 National Interpretation<br />
The standard requirements of the Indonesian National Interpretation of <strong>RSPO</strong> Principles and Criteria<br />
(<strong>RSPO</strong> INA-NIWG) version May 2008 were used to assess the operations of the Palm Oil Mill and the<br />
supply base of FFB for PT. Tapian Nadenggan.<br />
1.2 Scope of Certification<br />
The scope of certification is the production from 1 (one) mill supplied by 3 (three) companyowned<br />
estates. The mill also processes outgrower FFB, but they are not included in the claimed<br />
certification.<br />
Public Summary Report PT. Tapian Nadenggan –Langga Payung Mill Page 4
1.3 Locations<br />
PT. Tapian Nadenggan – Langga Payung Mill (PTTN) is offering 1 (one) mill and 3 (three) estates, 2<br />
estates are located in Kabupaten Padang Lawas Utara, and 1 (one) estate Normark Estate under PT.<br />
Satya Kisma Usaha (PTSKU) is located in Kabupaten Labuhanbatu Selatan, Province of North Sumatra,<br />
Indonesia for certification. The locations of the mill and estates are shown in Figures A-1 with their<br />
GPS coordinates (The readings for the estates are for their offices).<br />
Table 1: GPS Coordinates for Mill and Estates of Tapian Nadenggan (North Sumatra area) (Estate<br />
coordinates are for their offices)<br />
Code<br />
Unit<br />
Location<br />
GPS coordinates<br />
Longitude (E) Latitude (S)<br />
LPYM<br />
Langga Payung<br />
POM<br />
Ds . Huta Baru Nangka, Halongonan,<br />
Padang Lawas Utara, Sumatra Utara<br />
99º 53' 13'' E 1º 39' 16'' N<br />
LPYE<br />
PBNE<br />
Langga Payung<br />
Estate<br />
Ds . Huta Baru Nangka, Halongonan,<br />
Padang Lawas Utara, Sumatra Utara 99º 53' 22'' E 1º 38' 55'' N<br />
Paya Baung Estate Ds. Huta Baringin, Simangambat, 99º 58' 31'' E 1º 37' 12'' N<br />
Padang Lawas Utara, Sumatra Utara<br />
NRME Normark Estate Ds. Normark, Kota Pinang,<br />
Labuhanbatu Selatan, Sumatra Utara<br />
99º 59' 53'' E 1º 50' 57'' N<br />
Figure 1a. Map of Langga Payung Mill and Estates Location<br />
Public Summary Report PT. Tapian Nadenggan –Langga Payung Mill Page 5
Figure 1b. Overlay Map of Langga Payung Estate, Paya Baung Estates, and Normark Estate<br />
Public Summary Report PT. Tapian Nadenggan –Langga Payung Mill Page 6
1.4.1 Areas of Estates<br />
Three (3) estates are included in this certification assessment. Their land use data are given in<br />
Table 2.<br />
Table 2: Land use data for PT. Tapian Nadenggan – Langga Payung Mill ( June 2011)<br />
Langga Payung<br />
Estate<br />
Paya Baung<br />
Estate<br />
Normark<br />
Estate<br />
Total<br />
area<br />
Planted (ha) 4,961.04 2,507.39 1,900.89 9,369.32<br />
Others (building, public<br />
facilitiy) (ha)<br />
347.49 143.70 294.21 785.40<br />
HGU (ha) 5,308.53 2,651.09 2,195.10 10,154.72<br />
HCV (ha) (included in<br />
planted area) 229.45 27.7 226.83 483.98<br />
1.4.2. Description of Supply Base<br />
FFB for the mill are sourced from 3 (three) company-owned estates and also independent<br />
smallholders/ outgrowers. PTTN manages ± 10,154.72 ha of its own estates, and also receives FFB<br />
from independent smallholders. The smallholders are, however, independent, not beholden in any way to<br />
sell their fruits only to PTTN. The total independent smallholders/ outgrowers FFB received in 2010<br />
(January – December) was 86,671.37 t (33.89%) of the total processed by Langga Payung Palm Oil Mill.<br />
The respective volumes of FFB processed from the own-estates and independent smallholders are<br />
given in Table 3.<br />
Table 3: Sources of FFB processed by Langga Payung Palm Oil Mill (January – December 2010)<br />
Source of FFB<br />
FFB<br />
(t)<br />
Percentage<br />
(%)<br />
Langga Payung Estate 88,661.98 34.66<br />
Paya Baung Estate 47,943.19 18.74<br />
Normark Estate 32,503.61 12.71<br />
Total PTTN-Owned Estates 169,108.78 66.11<br />
Independent Smallholders 86,671.37 33.89<br />
Third party suppliers 0 0<br />
Total smallholders and third party 86,671.37 33.89<br />
Total FFB processed 255,780.15 100.00<br />
The smallholders was developed as part of PTTN’s commitment to help the local community<br />
development by advising them on how to plant oil palm. PTTN is committed to fully support<br />
smallholders develop their plots in a sustainable manner in compliance with the <strong>RSPO</strong> Principles<br />
and Criteria. However, their production is not within the scope of this current <strong>RSPO</strong> certification.<br />
1.4.3. Company Background and Ownership History<br />
PTTN is a subsidiary of Sinar Mas Agro Resources and Technology Tbk or known as PT.SMART<br />
Tbk Group. PT SMART Tbk is one of the largest, publicly-listed, integrated palm-based consumer<br />
companies in Indonesia which is committed to sustainable palm oil production. Founded in 1962,<br />
SMART's palm plantations have a total coverage area of approximately 137,500 hectares<br />
(including small holders). SMART also operates 15 mills, four kernel crushing plants and four<br />
refineries. SMART listed its shares on the Indonesia Stock Exchange in 1992. SMART is a<br />
subsidiary of Golden Agri-Resources Ltd ("GAR"), which is one of the largest palm-based<br />
Public Summary Report PT. Tapian Nadenggan –Langga Payung Mill Page 7
companies in the world which is listed on the Singapore Exchange. SMART also manages all of<br />
GAR's oil palm plantations, which has a total planted area of 445,100 hectares (including small<br />
holders) in Indonesia, as at 31 March 2011.<br />
SMART's primary activities are cultivating and harvesting of palm trees, processing of fresh fruit<br />
bunches into crude palm oil ("CPO") and palm kernel, and refining CPO into value-added products<br />
such as cooking oil, margarine and shortening. Besides bulk and industrial oil, SMART's refined<br />
products are also marketed under several brands such as Filma and Kunci Mas. Today, these<br />
brands have been recognised for their high quality and command significant market share in their<br />
respective segment in Indonesia.<br />
As a part of SMART Group, PTTN aim to be the leader in sustainable palm oil production by<br />
adopting the best industry practices and standards, managing the environment responsibly and<br />
empowering the communities where we operate while delivering shareholder value.<br />
PTTN sustainability strategy is implementing the best practices holistically in all dimensions of<br />
sustainability (the environment, community, market place and work place), benchmarking our<br />
practices against the Roundtable on Sustainable Palm Oil ("<strong>RSPO</strong>") and the United Nations Global<br />
Compact ("UNGC"), and engaging stakeholders proactively.<br />
PTTN has been established in 1979, and join with SMART since 1989 PTTN operations in<br />
Kabupaten Padang Lawas Utara and Kabupaten Labuhanbatu Selatan, Province of North<br />
Sumatera, consist of one mill and three estates : Langga Payung POM, Langga Payung Estate,<br />
Paya Baung Estate and Normark Estate The acquisition of lands has done in 1992 -1999 for<br />
Langga Payung Estate and Paya Baung Estate, and in 2005 for Normark Estate with total area<br />
10,154.72 ha..<br />
The summary of legal permist are shown in a table below :<br />
Company Unit Land Use Title /<br />
Hak Guna Usaha<br />
(HGU)<br />
PT. Tapian<br />
Nadenggan<br />
PT. Satya Kisma<br />
Usaha<br />
Langga Payung<br />
Mill/ Estate<br />
Paya Baung<br />
Estate<br />
Normark Estate<br />
23/HGU/DA/82<br />
23/HGU/DA/82/A/68<br />
14/HGU/1989<br />
5/HGU/BPN/2005<br />
Site Permit/ Izin<br />
Lokasi<br />
No. 593/40/K/<br />
BKPMD/1988,<br />
dated on<br />
16.07.1988 by<br />
Decree from<br />
Governor North<br />
Sumatra Province.<br />
Plantation<br />
Operation Permit /<br />
Izin Usaha<br />
Perkebunan<br />
No.763/Menhutbun/V<br />
II-2000, dated on<br />
29.06.2000 by<br />
Decree from Ministry<br />
of Forestry Republic<br />
of Indonesia.<br />
No.948/Menhutbun/V<br />
II-2000, dated on<br />
08.08.2000 by<br />
Decree from Ministry<br />
of Forestry Republic<br />
of Indonesia.<br />
HGU Decree<br />
HGU<br />
Number<br />
23/HGU/DA/82 1<br />
23/HGU/DA/82/A/68 1<br />
14/HGU/1989 1<br />
Area (ha) Location Issued of<br />
HGU<br />
1,209.15 Desa Batang Nadenggan<br />
18/12/1992<br />
1,765.47 Desa Sihopuk Baru<br />
4,985.00 Desa Huta Baringin dan<br />
Desa Ujung Batu Julu<br />
24/12/1992<br />
30/08/1999<br />
Validity of<br />
HGU<br />
31/12/2072<br />
31/12/2037<br />
31/12/2024<br />
5/HGU/BPN/2005 1<br />
2,195.10 Desa Perkebunan<br />
Normark<br />
25/02/2005<br />
31/12/2029<br />
Total HGU area<br />
10,154.72<br />
Public Summary Report PT. Tapian Nadenggan –Langga Payung Mill Page 8
1.5 Dates of Planting and Replanting Cycle<br />
In general, oil palm is replanted after 25 years, but possibly shorter / longer depending on the<br />
economics and status of the crop. The summary of planted oil palms is given in Table 4 and the<br />
detailed age profile of planted palms and total area is given in Table 5.<br />
Table 4: Area Summary of planted oil palms in Langga Payung Estate, Paya Baung Estate and Normark<br />
Estate for this certification assessment (as at June 2011)<br />
Estate<br />
Langga Payung<br />
Paya Baung<br />
Normark<br />
Area Summary (ha) *<br />
Planted Oil<br />
Location<br />
Palm<br />
Mature Immature<br />
Kec. Halongonan. Kab. Padang<br />
Lawas Utara, Sumatera Utara<br />
4,961.04 3.918,61 1,042.43<br />
Kec. Simangambat. Kab. Padang<br />
Lawas Utara, Sumatera Utara<br />
2,507.39 2.507,39 0<br />
Kec. Kota Pinang, Kab. Labuhan<br />
Batu Selatan, Sumatera Utara<br />
1,900.89 1.667.03 233.86<br />
Total 9,369.32 8,093.03 1,276.29<br />
Table 5 : Area statistics of planted oil palms in Langga Payung Estate, Paya Baung Estate and Normark<br />
Estate for this certification assessment (as at June 2011)<br />
Estates 0 - 5 % 6 - 10 % 11 - 15 % 16 – 20 % 21 - 30 % Total<br />
Langga<br />
Payung<br />
1,228.39 24.76 0 0 0 0 0 0 3,732.65 75.24 4,961.04<br />
Paya Baung 0 0 0 0 21.02 0.84 0 0 2,486.37 99.16 2,507.39<br />
Normark 570.55 30.01 836.76 44.02 239.55 12.60 - 254.03 13.36 1,900.89<br />
Total 1,798.94 836.76 260.57 6,473.05 9,369.32<br />
1.6 Other Certifications Held<br />
PTTN has been certified to:<br />
• ISO 9001:2008, Quality Management System for Langga Payung Mill by SAI Global since<br />
2002<br />
• SMK3, based on Permenaker No. 5 Tahun 2005 by the Ministry of Labor of the Republic of<br />
Indonesia since 2000 ;<br />
Organizational Information/ Contact Person<br />
All information in respect of this certification assessment for <strong>RSPO</strong> should be addressed to:<br />
Contact Person<br />
Position<br />
Organization name<br />
Address<br />
Mr. Ismu Zulfikar<br />
Head of Environment Department<br />
PT. TAPIAN NADENGGAN<br />
BII Plaza Tower 2, 10 th Floor<br />
Jl. MH. Thamrin Mo.51<br />
Postal code, city<br />
10350, Jakarta Pusat<br />
Country<br />
Indonesia<br />
Telephone Nr +6021-3181388<br />
Fax Nr +6221-3181389<br />
Email<br />
ismu-zulfikar@smart-tbk.com<br />
Public Summary Report PT. Tapian Nadenggan –Langga Payung Mill Page 9
1.7 Time-Bound Plan for Other Certification Units<br />
PTTN as a subsidiary of PT. SMART Tbk has commitment to obtain the <strong>RSPO</strong> certification for 1<br />
(one) mill and its supply base in North Sumatra this year and for other 3 (three) mills and its supply<br />
base in Kalimantan as the others companies under PT. SMART Tbk Group. PTTN also has future<br />
plans to provide training and awareness about the <strong>RSPO</strong> certification process to smallholders / out<br />
growers for the mill that receive the fruit from the plasma farmers/ outgrowers. The Bukit Subur<br />
KKPA in East Kalimantan will be proposed to get <strong>RSPO</strong> certification in 2012.<br />
The time-bound plan for doing so is set out in the table below:<br />
Time bound plan for mills and estates under PT. Tapian Nadenggan:<br />
No Name of Mill Supply Base<br />
1 Hanau Mill Hanau Estate<br />
Tasik Mas Estate<br />
Tanjung Paring Estate<br />
Langadang Estate<br />
Medang Sari Estate<br />
2 Semilar Mill Semilar Estate<br />
Sei Rindu Estate<br />
Mandang Estate<br />
Puri Estate<br />
3 Jak Luay Mill Pantun Mas Estate<br />
Pantun Mas KKPA<br />
Jak Luay Estate<br />
Jak Luay KKPA<br />
Long Buluh Estate<br />
Bukit Subur Estate<br />
Bukit Subur KKPA<br />
Company of<br />
Mill<br />
PT Tapian<br />
Nadenggan<br />
PT Tapian<br />
Nadenggan<br />
PT Tapian<br />
Nadenggan<br />
Location<br />
Central<br />
Kalimantan<br />
Central<br />
Kalimantan<br />
East<br />
Kalimantan<br />
Proposed Time for<br />
Certification<br />
2010*<br />
(Delayed due to<br />
grievance panel)<br />
2012<br />
2012<br />
Time bound plan for mills and estates under others companies (SMART Group)<br />
No Name of Mill Supply Base<br />
1 Padang<br />
Halaban Mill<br />
2 Batu Ampar<br />
Mill<br />
Padang Halaban Estate<br />
Pernantian Estate<br />
Adipati Estate<br />
Kanopan Ulu Estate<br />
Batu Ampar Estate<br />
Batu Mulia Estate<br />
Sungai Panci Estate<br />
Sungai Panci KKPA<br />
3 Tanah Laut Mill Tanah Laut Estate<br />
Kintapura Estate<br />
5 Leidong West<br />
Mill<br />
8 Gunung<br />
Kombeng Mill /<br />
Muara Wahau<br />
Mill<br />
Leidong West Utara<br />
Estate<br />
Leidong West Selatan<br />
Estate<br />
Bukit Intan Estate<br />
Bukit Mas Estate<br />
Gunung Kombeng Estate<br />
Gunung Kombeng KKPA<br />
Muara Wahau Estate<br />
Rantau Panjang Estate<br />
Rantau Panjang KKPA<br />
9 Jelatang Mill Batang Merangin Estate<br />
Kubang Ujo Plasma<br />
Pamenang Plasma<br />
10 Pelakar Mill Pelakar Estate<br />
Tiga Serumpun Estate<br />
Bukit Bungkul KKPA<br />
Company of<br />
Mill<br />
PT SMART Tbk<br />
PT SMART Tbk<br />
PT SMART Tbk<br />
PT Leidong<br />
West Indonesia<br />
PT Kresna Duta<br />
Agroindo<br />
PT Kresna Duta<br />
Agroindo<br />
PT Kresna Duta<br />
Agroindo<br />
Location<br />
North<br />
Sumatera<br />
South<br />
Kalimantan<br />
South<br />
Kalimantan<br />
Proposed Time for<br />
Certification<br />
2010*<br />
(has been<br />
assessed)<br />
2010*<br />
(Delayed due to<br />
grievance panel)<br />
2010*<br />
(Delayed due to<br />
grievance panel)<br />
Bangka 2011<br />
East<br />
Kalimantan<br />
2012<br />
Jambi 2012<br />
Jambi 2012<br />
Public Summary Report PT. Tapian Nadenggan –Langga Payung Mill Page 10
11 Langling Mill Bangko Inti Estate<br />
Bangko Plasma<br />
12 Sungai Bengkal Sungai Bengkal Estate<br />
Mill<br />
Batang Gading Estate<br />
Sungai Bengkal KKPA<br />
Batang Gading KKPA<br />
Kilis Estate<br />
Kilis KKPA<br />
13 Bukit Kapur Mill Sungai Cantung Estate<br />
Bukit Kapur Estate<br />
PT Kresna Duta<br />
Agroindo<br />
PT Satya Kisma<br />
Usaha<br />
PT SMART Tbk<br />
Jambi 2012<br />
Jambi 2012<br />
South<br />
Kalimantan<br />
2014<br />
1.8 Approximate Tonnages Certified<br />
All FFB produced from the company’s 3 (three) estates are processed by Langga Payung POM<br />
which has milling capacity 60 t FFB/ hour. The production from smallholders/ outgrowers FFB is not<br />
included within the scope of this assessment at this time. The volumes claimed for certification by<br />
Langga Payung POM are shown in Table 6:<br />
Table 6: Palm oil / palm kernel volumes claimed for certification<br />
Mill<br />
Estates<br />
Annual Production from company estates (t)<br />
CPO PKO PK<br />
Langga Payung 19,349.95 0 4,976.70<br />
Langga<br />
Paya Baung 10,463.32 0 2,691.11<br />
Payung POM<br />
Normark 7,093.72 0 1,824.47<br />
TOTAL<br />
36,906.99 0 9,492.28<br />
Note : The volumes are the actual production from January to December 2010, OER = 21.82%,<br />
1.9 Date Certification Issued and Scope Certificate<br />
The scope of the certificate to be issued covers the production from 1 (one) palm oil mill and 3<br />
(three) estates. The date of issuance of the certificate will depend on approval of this Assessment<br />
Report by the <strong>RSPO</strong> Secretariat. A draft certificate is shown in Annex B.<br />
2. <strong>ASSESSMENT</strong> PROCESS<br />
2.1 Certification Body<br />
PT. TÜV NORD Indonesia is a subsidiary of the German TÜV NORD Group. Our company is a<br />
market leader in Indonesia for inspection, testing and certification services. Through more than 600<br />
clients, we offer not just a high added-value service but also the trust and confidence embedded in<br />
our issued certificates / reports. We satisfy not only our direct customers but also other<br />
stakeholders, like regulators and interested society, including NGOs, through our competent<br />
auditors, inspectors and analysts.<br />
PT. TÜV NORD Indonesia, through its HQ in Germany, is a member of International Accreditation<br />
Forum (IAF) and accredited by DAR–German and locally by the Indonesian Accreditation<br />
Committee (KAN). Services provided by the Strategic Business Unit Systems Certifications are:<br />
Food Safety Management System ISO 22000, Information Security Management System ISO<br />
27001, Social Accountability SA 8000, Food Hygiene HACCP, Medical Device Directive MDD,<br />
ISO 13485, Occupational Health and Safety OHSAS 18001, Product Certification: GS-Mark,<br />
CE-Mark, SNI Mark, Inspection for ISPS Code, Clean Development Mechanism (CDM) Validation &<br />
Verification, British Retail Consortium, BRC Issue 5.<br />
Public Summary Report PT. Tapian Nadenggan –Langga Payung Mill Page 11
The offices of PT. TÜV NORD Indonesia are at:<br />
Head office<br />
System Certification Management<br />
Perkantoran Hijau Arkadia Tower F, 7 th Floor<br />
Suite 706<br />
Jl. Let. Jend. TB Simatupang Kav. 88<br />
Jakarta 12520 – Indonesia<br />
Tel : +6221 7883 7338<br />
Fax : +6221 7883 7336<br />
Branch office<br />
Graha Pangeran 7-H1 Floor<br />
Jl. Jend. A Yani 286 Surabaya 60234 –<br />
Indonesia<br />
Tel : +6231 8292602<br />
Fax : +6231 8292723<br />
Laboratory Division<br />
Jl. Jababeka XVII E Blok U No. 27B<br />
Kawasan Industri Jababeka I<br />
Cikarang Bekasi 17530 – Indonesia<br />
President Director: Mr. Robert Napitupulu<br />
Email: rnapitupulu@tuv-nord.com<br />
Website : www.tuev-nord.de<br />
2.2 Assessment Methodology<br />
The certification assessment of PTTN, Langga Payung Mill and its supply base at North Sumatera<br />
was carried out from July 4 to 8, 2011. A pre audit also conducted in February 2011 to confirm the<br />
scope of certification and the preparedness of the organization before certification asessment. The<br />
assessment comprised four phases:<br />
• A desk audit (document check) with a customised <strong>RSPO</strong> audit checklist according to the <strong>RSPO</strong><br />
manual, procedures and palm oil mill and estate working instructions;<br />
• Review results of consultation with stakeholders prior to certification assessment. The detailed<br />
method is given in Point 2.8;<br />
• Background investigations (published disputes, public comments on preliminary<br />
announcement), followed by interviews with <strong>RSPO</strong> management, employees and other<br />
stakeholders (associated people, NGOs, land regulators, social watchers, labour union); and<br />
• Verification of proposed corrective actions followed by review of the assessment report by<br />
internal veto persons (Senior Manager of PT. TÜV NORD Indonesia).<br />
The summary public report of this certification assessment includes Corrective Action Requests,<br />
Corrective Actions Taken, Verification of Corrective Actions Taken and Progress in Implementation<br />
of Corrective Actions to be checked in the Surveillance Audit.<br />
The Non Conformities are broadly due to:<br />
• Major Non Conformities:<br />
- mistakes in interpretation of <strong>RSPO</strong> P&C by PTTN directly affecting the certification assessment;<br />
- requirements of some <strong>RSPO</strong> P & C not met or, in other words, non-compliance to the P&C on<br />
a major indicator(s);<br />
These raise doubt on the capability of PTTN to achieve the desired results.<br />
• Minor Non Conformities:<br />
Where information is insufficient, unclear or insufficiently transparent to establish whether a<br />
requirement is met, or non-compliance to the requirements of the <strong>RSPO</strong> P & C on a minor<br />
indicator(s);<br />
Public Summary Report PT. Tapian Nadenggan –Langga Payung Mill Page 12
• Potential for Improvement<br />
Conditions and factors in PTTN that will allow it to better satisfy the requirements of the relevant<br />
standards;<br />
• Strengths, weaknesses, opportunities and threats of PTTN<br />
The final certification assessment was made after issuance of the Corrective Actions Taken<br />
statement by PTTN. The auditors have assessed the corrective actions taken and are satisfied that<br />
the results comply with the required standards. Based on the compliance effected, this certification<br />
assessment report is forwarded to <strong>RSPO</strong> for its consideration for approval.<br />
2.3. Certification Assessment Checklist of Principles and Criteria<br />
To systematically consider all the relevant <strong>RSPO</strong> P & C in the assessment, a checklist was used.<br />
The checklist has all the P & C against which the means employed by the management to satisfy<br />
them are noted. It serves the following purposes:<br />
- Organizes, details and clarifies the criteria that the management is expected to meet;<br />
- Ensures transparency in the certification process - whether the criteria have been satisfied by<br />
the management.<br />
The checklist was drawn up against the Indonesian National Interpretation of the <strong>RSPO</strong> P & C.<br />
2.4. Review of documents<br />
The PTTN documentation was submitted in June 2011 and its adequacy / completeness reviewed<br />
against the certification assessment checklist.<br />
2.5. Onsite and Follow-up interviews<br />
The audit team collected all the information on PTTN management for evidence of conformity to the<br />
<strong>RSPO</strong> P & C on a random sampling basis.<br />
Interviews with the respective staff, workers and some stakeholders in charge were carried out to<br />
ascertain the manner and circumstances in which the PTTN management system is implemented<br />
within the organization.<br />
The certification assessment was carried out from 04 to 08 July 2011. TÜV NORD Indonesia<br />
conducted on-site interviews with PTTN management, and palm oil mill / estate personnel to verify<br />
some information and resolve issues arising from reviews of the documents and PTTN<br />
management.<br />
The key points with respect to and concerned with the main topics of the interviews are summarised<br />
below:<br />
Interviewed Persons & Interview topics for Manager, Staff, Workers<br />
General aspects of the certification and the certification boundary;<br />
Chemical stores, Water management, Details on reduction of paraquat use;<br />
Approval documentation and status, Legal aspects related to PTTN management;<br />
Management Policy and Quality, SM-K3 and Environmental Management System;<br />
Involved personnel and their responsibilities;<br />
Justification of <strong>RSPO</strong> P & C;<br />
Public Summary Report PT. Tapian Nadenggan –Langga Payung Mill Page 13
Monitoring and measurement of environmental performance for waste water treatment;<br />
Identification of environmental aspects and impacts;<br />
Flora, fauna, ecology and biodiversity;<br />
Land and conversion planting, Replanting inspection and handling of chemical packaging<br />
wastes, Zero burning;<br />
Socio economic impacts on local population, Sanitary and hygiene of employees’ housing<br />
complexes;<br />
Licenses, operation & maintenance authority and responsibility;<br />
IPM (Integrated Pest Management);<br />
HCV identification;<br />
Mill operation, including Inspection of FFB received, Transport of FFB, Road maintenance and<br />
Workshops for heavy trucks, loaders, etc.<br />
Interviewed Persons & Interview topics for Stakeholders<br />
<br />
<br />
<br />
Environmental protection within the estates and mill including use of pesticides, wastes and<br />
effluent management, Company approach to community development;<br />
Provision of housing, sanitation, amenities and educational support;<br />
Biodiversity conservation within the estate(s) and surroundings (where possibly impacted by the<br />
estate / mill operations), Opportunities for earning fair wages, overtime and piece-rate work.<br />
2.6. Resolution of Non-Compliances<br />
For remedying any non-compliances, the required corrective actions were discussed. PTTN was<br />
required to close out the outstanding any major issue(s) by responding to the Non Conformity<br />
Report by describing, with evidence, the corrective action(s) taken.<br />
In this certification assessment, the auditing team raised 4 major non-conformities and 6 minor nonconformities<br />
and noted some improvements to be made. The non conformities and suggested<br />
improvements are all documented in this report.<br />
2.7. Qualifications of the lead assessor and assessment team<br />
Lead Assessor<br />
: Sudarmadji<br />
He has a background in electrical engineering; and qualified in environmental auditing with<br />
sustainability management system such as EMS. He has completed training as Lead Auditor ISO<br />
14001, ISO 900, Occupational Health & Safety management system and CDM certification. He has<br />
completed training as Lead Assessor / Internal Assessor Sustainable Palm Oil by Indonesia Palm<br />
Oil Board and KAN (National Accreditation Committee). He is an experienced auditor in several<br />
audits palm oil manufacturers assessment based on ISO 14001, with a total minimum 15 days of<br />
audit. As team member involved in <strong>RSPO</strong> certification assessment for PT. PP London Sumatra<br />
Indonesia, Tbk (North Sumatera Province) in October – November 2008; and PT. Sahabat Mewah<br />
dan Makmur in December 2009.<br />
Public Summary Report PT. Tapian Nadenggan –Langga Payung Mill Page 14
Assessor<br />
: Wieke Savitri<br />
Graduated from Agriculture Faculty in Bogor Agricultural University, then, consultant at Perkumpulan<br />
Untuk Peningkatan Usaha Kecil supporting by GTZ, a foundation to promote small scale enterprises<br />
by offering training and consultation in business management, human resources, marketing and IT.<br />
Before joining TUV NORD Indonesia, she spent 7 years working for Danone–Aqua, a beverage<br />
company, in which she held various positions, such as Quality Control Manager at Pandaan factory in<br />
East Java before her last position as Quality Assurance Manager at Klaten factory in Central Java.<br />
Her passion for environmental and social issues had led her to join Aqua Foundation even while<br />
working in Danone-Aqua - to develop community development programs for people living around her<br />
factory. She also attended a Workshop for Community-based Environmental Educators by the United<br />
Nations of Environmental Program in Bangkok. Finally,joined PT. TUV NORD Indonesia in September<br />
2006 as QMS auditor, and appointed Surabaya Branch Manager. She is an experienced auditor in<br />
palm oil manufacturing and oil palm estates. Attended DOEN <strong>RSPO</strong> auditors training in 2008. As<br />
team member involved in <strong>RSPO</strong> P &C certification assessment in PT. Perkebunan Nusantara IV, PT.<br />
Aek Tarum- Sampoerna Agro, PT. PP. London Sumatra Tbk, Musi Banyuasin Region and North<br />
Sumatra. She is also team member for <strong>RSPO</strong> Supply Chain Certification System in PT. Multimas<br />
Nabati Asahan, PT. Mustika Sembuluh, PT. Kerry Sawit Indonesia and PT. Sinar Alam Permai<br />
(Wilmar Group).<br />
Assessor<br />
: Anita Masduki<br />
She has a bachelor degree in Chemical Engineering from Institute Technology Bandung (ITB), and<br />
holds diploma in Biological Treatment from Hiroshima University, Japan, besides holds diploma in<br />
Environmental Management from Institute Environmental Management and Assesment in UK. She<br />
attended trainings such as Ozone Depleting Substance Program; Indonesia Cleaner Industrial<br />
Program.. She is an experienced auditor in quality management system ISO 9001, environmental<br />
management system ISO 14001 and OHSAS 18001 in various organization. Before joining TUV<br />
NORD Indonesia in 2011, she has a long time job as a consultant for 17 years in management<br />
system. She attended <strong>RSPO</strong> lead assessor training in 2011.<br />
Technical Expert<br />
: Dr. Hariyadi<br />
He holds a doctorate in Agriculture Environment from Bogor Agricultural University (IPB), and has a<br />
strong background and experience in the socio-environment aspects of agriculture as a lecturer in<br />
Agriculture and Socio-environment. Assisted in socio-environmental impact assessments and did<br />
research in Green Giant NPK fertilizer effects on immature oil palm growth. Has extensive experience<br />
in research in plant water and nutrient requirements, irrigation and fertilizer application, seedling<br />
selection and Integrated Pest Management. Qualified in biodiversity assessment and biodiversity<br />
science. Underwent auditor training in oil palm estates and palm oil mill in EMS and <strong>RSPO</strong> P & C.<br />
Completed training in EMS course for ISO 14001:2004 and has experience in oil palm estate waste<br />
management, disposal of EFB and fertilizer packaging and environmental impact on employees’<br />
housing complexes. Member of the team in <strong>RSPO</strong> certification assessment of PT. London Sumatra<br />
Indonesia Tbk in 2008, PT. Perkebunan Nusantara IV and PT. Aek Tarum –Sampoerna Agro.<br />
Technical Expert<br />
: Ir. Basita Ginting, M.A, Ph.D<br />
He has bachelor degree in Agriculture Socio-economics from Bogor Agricultural University (IPB), and<br />
holds a doctorate in Community Development from University of The Philippines. He has a strong<br />
background and experience in the Evaluation for Social Impact Assessment and aspects of<br />
agriculture as a lecturer for Villager Sociology in Human Ecology Faculty, IPB. Has extensive<br />
experience in researches and consultation for more than 15 years such as Landownership structures<br />
and levels of living settlers in the transmigration areas; Community participation in the family welfare<br />
movement, etc.<br />
Public Summary Report PT. Tapian Nadenggan‐Langga Payung Mill Page 15
2.8. Outline of how stakeholders were interviewed<br />
Stakeholder consultations began with notification of the upcoming assessment in the websites of<br />
<strong>RSPO</strong> and PTTN. Telephone calls, e-mails, facsimiles or letters were sent to the applicable<br />
stakeholders. PTTN has held regular meetings with its stakeholders in accordance with its<br />
communication procedure “SOP Komunikasi dan Konsultasi dengan Stakeholder No. PT.TN-<br />
LPYM/<strong>RSPO</strong>-SOP/03 dated on 01.07.2010 “. Before the assessment proper, the audit team trawled<br />
the proceedings of all the meetings to update itself on the current situation and issues involved. The<br />
stakeholders were then invited to discuss critical issues in community development, including the<br />
latest progress plans for community development and the targets to be achieved. Some of the items<br />
on the agenda for the stakeholders’ meeting were the maintenance of infrastructure - roads, irrigation<br />
and drainage network, bridges and schools. In addition, to provide financial support, scholarships,<br />
welfare, sanitation and improved hygiene for the people living near the employees’ housing<br />
complexes, palm oil mill and supply bases. The discussion with stakeholders was well organized. The<br />
audit team then visited some of them for interviews for both positive / negative information on any<br />
issue in connection with the operations of the PTTN palm oil mill and supply bases. The stakeholders<br />
meeting conducted by assessor team and interviews without the presence of the company<br />
personnel/staff to obtain more comprehensive feedback.<br />
2.9. List of Stakeholders<br />
The table below lists the stakeholders involved:<br />
Statutory Body<br />
Contact Person<br />
(if applicable and address)<br />
Location<br />
Phone<br />
Kabagtapem Pemkab LaBuSel Zulkifli Kota Pinang 08126265418<br />
Asisten 1 Pemkab Paluta Amas Hasibuan Gunung Tua 08126569707<br />
Camat Halongonan Pangaribuan Dalimunthe Sipaho 082166735400<br />
Camat Sei Kanan Igani S.Sos Langga Payung 08126007320<br />
Kapolsek Sei Kanan H.A. Siregar Langga Payung 081361900838<br />
Kapolsek Gunung Tua M.Sijabat Gunung Tua 081363205666<br />
Danramil Pd.Bolak Chaidir Harahap Gunung Tua 081376629919<br />
Danramil Sei Kanan Hotman Langga Payung 081376809990<br />
DisHutBun Labuhan Batu Erwin Rantau Prapat 081376006244<br />
KaDisHutBun Paluta Marataib Harahap Gunung Tua 08127604281<br />
PPL DisHutBun Paluta Suwito Hutaimbaru 081362011819<br />
PPL DisHutBun Labusel Wahidin Ranto Jiur 081370568420<br />
Kasubbidwasnaker Disnaker I Ngarak Karo karo Rantau Prapat 081361590714<br />
Labuhan Batu<br />
Disnaker Padang Lawas Utara Olopon Simbolon Gunung Tua 081376252160<br />
Kasie Sengketa BPN Labuhan Sujono Rantau Prapat 081361333656<br />
Batu<br />
Kasie Sengketa BPN Pd<br />
Adi Irwansyah P.Sidempuan 081397549515<br />
Sidempuan<br />
Kades Situmbaga Faisal Situmbaga 081265568868<br />
Kades Huta Baru Nangka Saur Harahap Huta Baru Nangka 081397002196<br />
Kades Bt. Nadenggan Yahya Harahap Tapian 081375535550<br />
Kades Ujung Gading Abdul Hakim Ujung Gading 081362443310<br />
Kades Sihopuk Baru Rohman Sihopuk Baru 081263639096<br />
Kades Sihopuk Lama Sanaran Harahap Sihopul Lama 081397810180<br />
Kades Siancimun Parlaungan Harahap Siancimun 081396252259<br />
Kades Rondaman Alpian Harahap Rondaman 081396996075<br />
Public Summary Report PT. Tapian Nadenggan‐Langga Payung Mill Page 16
Smallholders / Outgrowers<br />
Contact Name<br />
Phone<br />
E mail<br />
(if applicable and address)<br />
H. Repelita 081361445500<br />
H. Dahyar 08126381123<br />
H. Daham 081370674461<br />
H. Pandu Husin 081370999977<br />
Independent supplier of<br />
Contact Name<br />
Location<br />
Phone<br />
materials and services (if applicable and address)<br />
PT.Altrak Bp.T.Mulja Tirto Medan 061-8449978<br />
PT.United Traktor Bp.Joseph Tarigan Medan 061-7865133<br />
PT.Traktor Nusantara Bp. Ilham S.Nasution Medan 061-7874455<br />
PT.Trakindo Bp.M.Ridwan Medan 061-7865311<br />
Worker Organization<br />
Contact Name<br />
Location<br />
Phone<br />
(if applicable and address)<br />
Ketua SPSI Resman Purba Pondok Ry II LPYE 085270098025<br />
Ketua Kop Kar Tapian Makmur Ismail Pondok Div.1 081265657266<br />
LPYE<br />
NGO<br />
Contact Name<br />
Location<br />
Phone<br />
(if applicable and address)<br />
Khatulistiwa Parulian Sihopuk Baru 082166048466<br />
Koran Lokal "Dinamika Rakyat" Sutan Parbonuan Hrp Hutaimbaru 081260649588<br />
2.10. Questions posed in interviews with stakeholders<br />
• Does PTTN provide information on the <strong>RSPO</strong> certification exercise including plans for safety and<br />
health to the public and stakeholders?<br />
• Does PTTN hold regular meetings on community development?<br />
• Does PTTN respond well to complaints in respect of <strong>RSPO</strong> P & C implementation?<br />
• Is there a clear grievance and complaints procedure in the company?<br />
• Are there any complaints on land acquired by PTTN for planting oil palm?<br />
• Is there any environment impact caused by the operations of PTTN?<br />
• Is there a procedure for settlement of conflicts communicated to the local community?<br />
• Does PTTN meet with stakeholders regularly to discuss issues on community development?<br />
• Are the workers paid in accordance with government regulations?<br />
• Is there a system to disseminate information quickly in emergencies to the local communities<br />
around the palm oil mill and supply bases?<br />
All the responses / comments, whether positive or negative, were recorded by the audit team by<br />
hand. It then verified the information by the standard operating procedure.<br />
.<br />
2.11. Date of next surveillance visit<br />
The next surveillance audit has to be within 12 months from the date of <strong>RSPO</strong> approval of the Initial<br />
Certification. The surveillance audit has to be conducted yearly for a 5-years period.<br />
Public Summary Report PT. Tapian Nadenggan‐Langga Payung Mill Page 17
3. <strong>ASSESSMENT</strong> FINDING<br />
3.1 Summary of findings<br />
Objective evidence was obtained separately for each of the indicators for the mill / estates in the<br />
certification assessment. The information was comprehensively asked from the 1 (one) mill and 3<br />
(three) estates, and outgrowers.<br />
The results for each indicator from the different operational areas were aggregated to assess the<br />
overall conformance of the Company's operations to it. A finding is made for each indicator.<br />
Nonconformities were raised against 4 (four) Major Indicators, and 6 (six ) Minor Indicators with some<br />
opportunities for improvement noted. Where a nonconformity / observation is assigned,<br />
reference is made at the end of the text of the Indicator to which it refers.<br />
PTTN has prepared a Corrective Active Plan and submitted evidence which has been accepted by TNI. The<br />
effectiveness of the corrective actions for the minor nonconformities will be checked on the next<br />
surveillance but the major non-compliance has to be closed within 60 days and on-site verification is<br />
taken on September 6, 2011.<br />
The following is a summary of the findings for compliance with the <strong>RSPO</strong> Principles & Criteria.<br />
Criterion 1.1<br />
Oil palm growers and millers provide adequate information to other stakeholders on<br />
environmental, social and legal issues relevant to <strong>RSPO</strong> Criteria, in appropriate languages and<br />
forms to allow for effective participation in decision making.<br />
PTTN has a procedure for communicating with stakeholders as decribed in “SOP Komunikasi dan<br />
Konsultasi dengan Stakeholder No. PT.TN-LPYM/<strong>RSPO</strong>-SOP/03 dated on 01.07.2010 All the heads<br />
in the mill / estates are required to provide adequate information as required by the <strong>RSPO</strong> criteria.<br />
There was no specific form, but PTTN provide information boxes placed in front of estate/ mill office<br />
and checked regularly every week. Stakeholders requests, especially on donation will be considered<br />
under the CSR program, or immedeately if the amount is reasonable, for example : request from<br />
Police Office Padang Lawas Utara about 31 flag poles dated on April 29, 2011, had been replied<br />
promptly on May 4, 2011, and fulfilled on July 9, 2011. Mechanisme to perform the CSR was<br />
conducted through the SOP No. 014/SOP.CSR/05/2011, dated 1 July 2011. The requests and<br />
responses for information are recorded in the „ Buku Komunikasi Konsultasi dan Tanggapan. (1.1.1).<br />
The response(s) are within one week after the request had been received whether they are approved<br />
or not. (1.1.2). The records of requests / responses will be kept for 5 (five) years as stated in “SOP<br />
Pengendalian dan Masa Simpan Dokumen No.PT.TN-LPYM/<strong>RSPO</strong>-SOP/04 dated on 01.07.2010.<br />
(1.1.3).<br />
Compliance Status : Full.<br />
Criterion 1.2<br />
Management documents are publicly available, except where this is prevented by commercial<br />
confidentiality or where disclosure of information would result in negative environmental or<br />
social outcomes.<br />
Management documents on legal, environmental, health safety and social issues are publicly<br />
available upon request or regular reports are submitted to related stakeholders according to “SOP<br />
Daftar Informasi dan Stakeholder Terkait” or List of Information and Related Stakeholders (Form<br />
PTTN IUS dated on 01.07.2010).<br />
The legal documents are reported to Dinas Perkebunan (Agriculture Agency), BPN (Land Agency)<br />
such as:<br />
Izin Lokasi (Site Permit),<br />
Izin Usaha Perkebunan (Plantation Operation Permit)<br />
HGU (Land Use Title).<br />
Public Summary Report PT. Tapian Nadenggan‐Langga Payung Mill Page 18
HGU signboard also publicly available at the entrance gate of estate, as seen in Figure 2.<br />
In accordance with environmental issue, PTTN has prepared Environmental and Social Impact<br />
Assessment (AMDAL / UKL-UPL) and Environmental Management And Monitoring Reports (Laporan<br />
RKL-RPL), for Semester 2 in 2010 and submitted to BLH (Environmental Agency). Area of planting<br />
and production and fertilizers implementation documents are ubmitted to Agriculture Agency.<br />
Since PTTN is a labour-intensive company, it is required to comply with the mandatory SMK3<br />
(Occupational Health and Safety Management System). Progress on the Health and Safety Program<br />
(K3 program) is reported regularly to the Ministry of Labour of Republic of Indonesia.<br />
Social and financial documents such as list of number of employees and list of employee’s salary are<br />
submitted regularly to Dinas Tenaga Kerja & Transmigrasi (Labour & Transmigration Ministry in<br />
Regency & Province) and to JAMSOSTEK. Taxes documents are submitted to Regency and<br />
Province Goverment also to Local House of Representative (DPRD) .<br />
Besides the regular reports to related stakeholders, some documents are available upon request such<br />
as CSR program and social impact assessment for social base NGO, report of RKL/RPL for<br />
environmental base NGO. The stakeholder should ask the documents/ information officially according<br />
to “SOP Komunikasi dan Konsultasi dengan Stakeholder No. PT.TN-LPYM/<strong>RSPO</strong>-SOP/03” dated on<br />
01.07.2010 , the organization will respond to the request of information within one week whether it<br />
will be approved or not depending on the urgency. The top management is the the responsible<br />
person to decide it. (1.2.1).<br />
All the records are properly kept for the proper periods as stated in ““SOP Pengendalian dan Masa<br />
Simpan Dokumen No.PT.TN-LPYM/<strong>RSPO</strong>-SOP/04 dated on 01.07. e.g., safety, health and<br />
environment and social records 5 years and legal records indefinitely (1.2.2). Notwithstanding this,<br />
environmental and social data are presented during the yearly public consultation with stakeholders<br />
as part of its CSR program.<br />
Compliance Status : Full.<br />
Figure 2. Sign board of HGU (Land Use Title) at the entrance gate of estates<br />
Criterion 2.1<br />
There is compliance with all applicable local, national and ratified international laws and<br />
regulations<br />
PTTN keeps copies of all the legislations / regulations applicable to it from the applicable regulation<br />
list in “SOP Evaluasi Pemenuhan peraturan dan Persyaratan Lain (P. TN-LPYM/<strong>RSPO</strong>-SOP/06 dated<br />
Public Summary Report PT. Tapian Nadenggan‐Langga Payung Mill Page 19
on 01.07.2010. Evaluation is done regulary every six month by <strong>RSPO</strong> Officers in each unit which<br />
has to keep track of its (PTTN’s) legal requirements and make sure that they are complied with.<br />
Since PTTN has SM-K3 certification by Ministry of Labor of Republic Indonesia, the <strong>RSPO</strong> Officer has<br />
to make sure that the responsible personnel – engineers, boiler men, electricians, have the necessary<br />
qualifications, and the equipments – boilers and diesel generators – have the necessary certifications<br />
and the permits are still valid. The evidence of evaluation is recorded in “Form evaluasi kepatuhan<br />
kepada Peraturan, Perundangan dan Persyaratan lainnya (02/ENVD-EK-LH/X/2010)”, the last<br />
evaluation was done on 24.01.2011. All the documents were checked and mostly found to be in legal<br />
compliance. However, compliance for some regulations at regency (Kabupaten) level was<br />
outstanding due to the division of Kabupaten Tapanuli Selatan into Kabupaten Padang Lawas Utara<br />
and Labuhanbaru Selatan. Nevertheless, PTTN has taken the required steps to fulfill the outstanding<br />
regulation compliance as it needs time for the regency government to process them.<br />
Compliance Status : Full.<br />
Criterion 2.2<br />
The right to use the land can be demonstrated and is not legitimately contested by local<br />
communities with demonstrable rights<br />
Currently, there are no claims on PTTN-Langga Payung Mill by anyone based on interview with local<br />
communities and other stakeholders during public consultation. SMART Tbk took over the land from<br />
established company PT. Tapian Nadenggan in 1989, not directly from the local community. The mill /<br />
estate managers have ensured proper registration of their HGU certificates in register. (2.2.1). The<br />
boundaries of PTTN land were easily identified being demarcated by T-0 pillars, their identification<br />
numbers corresponding with points in the maps in HGU (Land Use Title) (2.2.2). There is mechanism<br />
to monitor and maintain the boundary stones periodically as shown in “Data Monitoring dan<br />
Perawatan Patok Batas BPN Report ”, which conducted every 6 month by HCV Officer,<br />
acknowledged by Estate Manager. The maintenance include cleaning and repainting the boundaries<br />
stones, and sometimes repairing the damaged boundaries stones or repositioning using GPS if the<br />
boundaries stones are relocated or missed. There is procedure for resolving any conflict over land<br />
refers to “Pedoman Teknis Persiapan Lahan SMART No. SOP/NP/SMART/XII/MCAR001, Chapter<br />
XII,. Penanganan Keluhan dan Ketidakpuasan” dated on 1 July 2010 and “SOP Penanganan Keluh<br />
Kesah dan Ketidakpuasan No. PT. TN-LPYM/<strong>RSPO</strong>-SOP/02, (2.2.3).<br />
Compliance Status : Full.<br />
Criterion 2.3<br />
Use of land for oil palm does not diminish the legal rights or customary rights of other users,<br />
without their free, prior and informed consent<br />
As far as could be ascertained, there is no customary right of other users, according to HCV<br />
assessment report there was no indigenous people around the mill and estates.<br />
Compliance Status : Full.<br />
Criterion 3.1<br />
There is an implemented management plan that aims to achieve long term economic and<br />
financial viability<br />
PTTN has long term projection (2010 – 2020) for its crop, including key performance data for its mill<br />
and estates as part of its long term economic planning for all corporate of SMART Tbk Group,<br />
including mill allocation, production of FFB (tonnage) FFB/ ha (yield); OER, by predicting inflation<br />
rate; exchange rate; interest rate; portion cash; dividen; non deductible expenses; working hours;<br />
turnover; % allowance for doubtful accounts, age of asset; price of FFB purchase. During the<br />
projection period the mill capacity is 60 FFB/ hour and no plan to increase the mill capacity.<br />
Compliance Status : Full.<br />
Public Summary Report PT. Tapian Nadenggan‐Langga Payung Mill Page 20
PTTN has developed projected annual replanting program until 2017 as seen in this table below:<br />
Unit<br />
Replanting a r e a (Ha)<br />
2011 2012 2013 2014 2015 2016 2017<br />
LPYE 737 289 559 161 730 639 953<br />
PBNE 228 262 304 523<br />
NRME 254<br />
TOTAL 737 543 559 389 992 943 1476<br />
Criterion 4.1<br />
Operating Procedures are appropriately documented and consistently implemented and<br />
monitored<br />
PTTN has Standard Operating Procedures with the best practices for its mill and estates operations.<br />
The mill have been certified to QMS ISO 9001 and HSE management SMK3 by the Ministry of Labour<br />
of Indonesia. Most of the Standard Operation Procedures are incorporated in the SM-K3 management<br />
The following procedures applicable and implemented within sustainable palm oil, such as :<br />
a. SOP for Oil Palm (containing aspects from nursery, land preparation, planting, upkeep,<br />
harvesting, waste management, HCV, emergency preparedness and response, and<br />
environmental monitoring).<br />
b. SOP for Palm Oil Mill (containing stages of process, boiler, power generation, water treatment,<br />
land application, electrical system, quality (inc monitoring of CPO parameters), dispatch and<br />
laboratory).<br />
c. Manual and SOP for Environment Management System, Health & Safety and SPO (containing<br />
application of pesticides, use of PPE , emergency preparadness) .<br />
Operational inspection for harvesting, maintenance, fertilizing, workshops, and other farming<br />
operations by the Vice President of Agronomy (VPA) and Regional Controler (RC) which is performed<br />
every 3 months. However, not all the procedures established are adequate or properly implemented.<br />
It was found that in Standard Operating Procedure for replanting doesn’t explain the timetable to plant<br />
legume cover crops. A Major non-compliance was issued.<br />
There was not clear which operating working instruction (WI) implemented in weeding, spraying and<br />
harvesting process, as there were two IK available: IK-12, IK-20, IK-21 (Rev 00, dated 02.07 2011) or<br />
IKPBNE/01, 02, 04 (Rev.00, dated 01.07 2011). A Major non-compliance was issued.<br />
Compliance Status : Not Compliant (See NCR T-01.07/2011 and T-04.07/2011)<br />
Criterion 4.2<br />
Practices maintain soil fertility at, or where possible improve soil fertility, to a level that<br />
ensures optimal and sustained yield<br />
SMARTRI, a corporate owned Research Institute has laboratory services to provide annual fertilizer<br />
recommendations based on soil sampling and analysis which are carried out once in 3 years while<br />
leaf sampling and analysis are regularly performed on yearly basis. For soil fertility and nutrient<br />
uptake correlation purpose, soil sampling units are arranged to coincide with the leaf sampling units.<br />
Parameters analyzed for soil samples consist of physical analysis ( texture), pH, organic carbon, total<br />
N, P and K, available P and Cation Exchange Capacity. Soil sampling is conducted in accordance<br />
with existing standard operating procedures (Soil Sampling Unit (SSU) Work Instruction)<br />
There are some agronomic practice to improve and maintain soil fertility implemented in PTTN :<br />
1. Using organic fertilizer<br />
2. Plant Legume Cover Crops<br />
3. Pruning and frond stacking<br />
4. Weeding,<br />
Public Summary Report PT. Tapian Nadenggan‐Langga Payung Mill Page 21
The application of POME as organic fertilizer in Langga Payung Estate based on land application<br />
research by Lembaga Penelitian Universitas Sumatera Utara, the last record refered to No. 01 –<br />
03/H5.2.3.1/PPM/K5/2011 dated on 07.01.2011. The test result of BOD range of the applied POME<br />
in three ponds are between 1,264 – 1,516 mg/l, still below the maximum standard 5,000 mg/l as<br />
required by “PerMenLH No.29/2009” The application of EFB in Langga Payung Estate in Division<br />
area II, IV, V and VI with the dosage 30 t/ha. Fertilizing program developed by SMARTRI covers time<br />
of application and type and dosage of fertilizer. Combination application of EFB and POME in Langga<br />
Payung Estates in recent years show that usage of chemical fertilizer was being reduced.<br />
Compliance Status : Full..<br />
Criterion 4.3<br />
Practices minimise and control erosion and degradation of soils<br />
PTTN has soil maps for each estate (Langga Payung Estate, Paya Baung Estate, and Normark<br />
Estate) which categorize the classes of land suitability based on parameters of slope, texture and soil<br />
limiting factors. There are no fragile or problem soils being classified on all the 3 soil maps.<br />
PTTN has established management strategy to minimize and control erosion and degradation of soils<br />
by planting Legume Cover Crops, terracing on undulating to steep areas, pruning and frond stacking<br />
besides having routine road maintenance program. Roadmaintenance is carried out bysandstone<br />
(sirtu) gravelling to make the road surface hard and compact.<br />
PTTN established procedure for land preparation for replanting, however , it was found during the<br />
field visit that the replanting area in Division 1 (LPYE11B21) with slope 16 - 40 % was not<br />
appropriately covered by Muccuna brachteata.<br />
A Minor non-compliance was issued. (See NCR T-02.07/2011)<br />
Compliance Status : Not Compliant<br />
Figure 3 Soil map in Normark Estate<br />
Public Summary Report PT. Tapian Nadenggan‐Langga Payung Mill Page 22
Criterion 4.4<br />
Practices maintain the quality and availability of surface and ground water<br />
PTTN has an implemented water management plan, such as : reuse condensate water from Cooling<br />
turbine into Water Treatment, using condensate from steam boiler as water dilution mixing in CPO<br />
processing, minimize water leakages from water pipes in the mill and estates, using dust conveyor<br />
instead of using water for dust collector boiler, installing float switch to all bathrooms. Record of<br />
water using per ton FFB is available, there is reduction from 1.24 m3 water/ t FFB in 2008 to 1.15m3<br />
water/ t FFB in 2010.. BOD Analysis of surface water is tested regularly by SMARTRI laboratory, the<br />
last record dated on 01. 06.2011. The BOD levels and other parameters such as pH must comply with<br />
the local requirements in the Liquid Waste regulations in environmental decree by Province of North<br />
Sumatra . The BOD data are submitted six-monthly in RKL/ RPL to BAPEDALDA (Regional<br />
Environmental Monitoring Body). Checks on records show that all the data complied with regulation.<br />
The auditor team checked that there were installation of chemical traps and oil traps in the mill to<br />
avoid water and soil contamination around the mill. To avoid the contamination of river water, HCV or<br />
riparian zones are in the process of being restored along the river banks. There are several sign<br />
boards of HCV 4.1 to warn people for not hunting and fishing and to remind workers for not applying<br />
fertilizer and pesticides to the palms in the riparian zones – a 50 meter belt along the river banks on<br />
both sides. Palms with red x markings within the riparian zones will not be maintained. No new<br />
palms will be planted in the riparian zones during replanting. SOP HCV monitoring in the riparian<br />
zone has been established and the records is well maintained. PTTN also established SOP agrochemicals<br />
mixing to avoid mixing of agro-chemicals in proximity of water courses, interview with<br />
spraying workers confirmed that they understood the both of the SOPs well.<br />
Compliance Status : Full.<br />
Figure 4. Sign board of HCV area along the river bank. No fertilizer and pesticide applications for<br />
marked palms within the limit zone.<br />
Criterion 4.5<br />
Pests, diseases, weeds and invasive introduced species are effectively managed using<br />
appropriate Integrated Pest Management (IPM) techniques<br />
PTTN has formulated an Integrated Pest Management (IPM) as recorded in “Laporan Sensus”,. PTTN<br />
practiced incorporating cultural, biological, mechanical or physical methods, by :<br />
1. Identification of pests, diseases and weeds before it become an outbreak of maximum level<br />
2. Introducing of beneficial plants for hosts of pests.<br />
3. Introduction Barn Owl (Tyto alba)<br />
4. Planting LCC<br />
5. Frond stacking<br />
6. Minimise use of agrochemicals.<br />
The use of pesticides is minimized through selective spraying instead of blanket spraying for cases of<br />
severe infestation of weeds.. Oil Palm Leaf Eater Control includes detection, cencus, examination,<br />
treatments, evaluation, monitoring and organisation. Checks on records confirmed there was no<br />
outbreak during the last 5 years. Planting beneficial plants, such as Bunga pukul delapan (Turnera<br />
Public Summary Report PT. Tapian Nadenggan‐Langga Payung Mill Page 23
subulata) and air mata pengantin (Antigonom leptosus) to harbour predators of the crop pests. PTTN<br />
provide maps shows the planting area of beneficial plants, for example in Paya Baung Estate as seen<br />
in Figure 2a.<br />
The barn owl or Burung hantu (Tyto alba) is protected and encouraged as a natural predator of rats,<br />
as PTTN have not used rodenticide anymore since 2009. There is a maps shows the location of barn<br />
owl boxes as seen in Figure 2b. Census of Tyto Alba is conducted monthly using PVC stick and<br />
lenses as ‘”periscope”, for example, during July 2011 there were 28 barn owl boxes occupied by<br />
couples of birds and their chicks in Paya Baung Estate”. The existence of the birds observed by<br />
detecting the feathers, faeces, sound and bones of preys. ..<br />
Pesticide toxicity units (a.i. / LD 50 / FFB tonnage) are monitored to herbicides such as :Glyphosate,<br />
Methyl metsulfuron, Paraquat, Triclopyr TEA salt, Fluroxypir; insecticides such as:Deltramethrin;<br />
Fungicides such as :Benomyl. The records were well maintained.<br />
Compliance Status : Full.<br />
Figure 5a. Maps of beneficial plants in Paya Baung<br />
Estate<br />
Figure 5b. Maps of Tyto alba boxes in Paya Baung<br />
Estate<br />
Figure 5c. Cencus of Tyto alba using PVC stick and lenses as”periscope”<br />
Public Summary Report PT.Tapian Nadenggan –Langga Payung Mill Page 24
Criterion 4.6<br />
Agrochemicals are used in a way that does not endanger health or the environment. There is<br />
no prophylactic use of pesticides, except in specific situations identified in national Best<br />
Practice guidelines. Where agrochemicals are used that are categorised by the World Health<br />
Organization as Types 1 A or 1 B, or are listed by the Stockholm or Rotterdam Conventions,<br />
growers are actively seeking to identify alternatives and this is documented.<br />
There is a List of pesticides used and pesticides stocks is listed in the”Balance Stock Agrochemical in<br />
2008, 2009, 2010”., such as : Ally 20 WDG (active ingredient : Metil metsulfuron), Roll Up 480 SL<br />
(Isopropil amina glyphosat), those can be bought for application are in accordance with the<br />
Permentan No 1/2001, WHO and Rotterdam convention, are issued and distributed to Procurement<br />
division. Only procurement division can buy and supply the materials. PTTN has a procedure on how<br />
to apply agrochemicals, refers to Peraturan Menteri Pertanian No. 07/Permentan /SR.140/ /2007, or<br />
Regulation No. 07/ Permentan /SR.140/ 2/2007 Ministry of Agriculture Republic of Indonesia.. All the<br />
agrochemicals used are registered and approved by Pusat Perizinan dan Investasi Sekretariat<br />
Jenderal Departemen Pertanian 2008, or Invesation and Permit Center, Agriculture Department,<br />
Republic of Indonesia. Checks on records show that the pesticide use (including active ingredients<br />
used, area treated, amount applied per ha and number of applications) is appropriate for the target<br />
species, given at correct dosage and applied by trained personnel in accordance with the product label and<br />
related SOP/ Working Instruction.<br />
PTTN has established procedure to handling hazardous agrochemicals, and provide facilities and<br />
proper PPE for workers who have contact with agrochemicals, including field sprayers, fertilizer applicators,<br />
warehouse helper and chemical mixer. However, it was found that MSDS of Rollixone in Agrochemical<br />
Warehouse at Payabaung Estate, and also for other MSDS, indicated that there must be shower<br />
water and soap available if emergency situation happened. The shower water was available, but it<br />
didn’t work and there was no soap available in place. The facility doesn’t provide bin for hazardous<br />
wastes, sand, and fabric cotton waste as required by SOP/PBNE/LBH (Rev.00, dated 01.07.2011. A<br />
Major non-compliance was issued. (See NCR T-08.07/2011).<br />
PTTN also established procedure for handling hazardous agrochemicals spills and only trained<br />
persons for pesticide application technique are permitted and instructed for pesticides application in<br />
the field. However, it was found Working instruction regarding handling of hazardous agrochemicals<br />
spill (SOP /PBE/LBH (Rev,00, 1 Juli 2010) was not available in Agrochemical Warehouse of<br />
Payabaung Estate. MSDS for agrochemicals are translated into Bahasa Indonesia, however, the<br />
warehouse helper didn’t understand the meaning. Symbol of hazardous chemicals was not in<br />
apropriate manner and the person in charge who handle agrochemicals found has not enough<br />
competence in his job, i.e MSDS, symbol, and working instruction. A Major non-compliance was<br />
issued. (See NCR T-09.07/2011).<br />
Waste material from agrochemicals including pesticides containers were collected by licensed contractor<br />
and the records of hazardous waste manifest were well maintained. PTTN has a plan to return the<br />
waste container to the vendor and the mutual agreement has been signed.<br />
Checks on the records of agrochemicals used found that they complied with the regulation. Usage of<br />
paraquat in 2008, 2009, and 2010 is reduced. Regular training/ socialization for chemical sprayers<br />
was conducted. There was evidence of regular medical check-ups for workers involved in handling<br />
hazardous chemicals. PTTN has policy that pregnant and breast-feeding women are prohibited from<br />
working with pesticides, and there are records of socialization of the policy to the female workers.<br />
Compliance Status : Not Compliant..<br />
Public Summary Report PT.Tapian Nadenggan –Langga Payung Mill Page 25
Criterion 4.7<br />
An occupational health and safety plan is documented, effectively communicated and<br />
implemented<br />
PTTN has established a safety, health and environment policy and certified SMK3. The organisation<br />
structure of Panitia Pembina Keselamatan dan Kesehatan Kerja (P2K3), or Guiding Committee on<br />
Occupational Health and Safety, has been established. Explanation and communication of the policy<br />
is the responsibility of the safety engineer (SM-P2K3) who daily monitors and inspects all facilities in<br />
the mill and estates for emergencies. There are regular monthly meetings between the management<br />
and workers on health and safety issues. All the permanent employees and contract workers are<br />
insured under JAMSOSTEK A record of JAMSOSTEK payment installment was sighted. All<br />
employees, especially those in high risk work, undergo an annual health examination with the results<br />
submitted to Dinas Tenaga Kerja – Balai Hiperkes Dan Keselamatan Kerja Provinsi Sumatera Utara<br />
(Department of Labor, Province of North Sumatra). PTTN provide 3 company clinics and 1 central<br />
clinic and there are 2 company physicians, nurses and midwives to serve the employees and their<br />
dependents in estates. However, there was no record or evidence that clinical weighing scale and<br />
stethoscope in Payabaung clinic in good condition. A Minor non-compliance was issued. (See NCR<br />
T-05.07/2011).<br />
The physicians visit the clinic twice a week. During their absence, the daily operations are conducted<br />
by the nurses, sometimes include giving prescription to the patients. However, it was found that there<br />
was no working instruction for nurses to prescribe medicine for patients, especially antibiotic.. A Minor<br />
non-compliance was issued. (See NCR T-06.07/2011)<br />
Medical waste from Payabaung clinic, periode April-June was kept not in appropriate manner, such as<br />
no labelled of waste, and not kept in appropriate place. A Minor non-compliance was issued.<br />
All the operations have been risk assessed for obtaining SMK3 certification. The P2K3 team<br />
identified and analysed the risks for all routine and non-routine activities in Langga Payung POM,<br />
Langga Payung Estate, Paya Baung Estate and Normark Estate. However, it was found that none of<br />
harvesting workers wear safety helmet in Langga Payung Estate, Paya Baung Estate and Normark<br />
Estate because the company doesn’t provide it for workers. The risk assessment and related SOP do<br />
not emphasize the need to wear appropriate PPE against the risk of being hit by harvested FFB fallen<br />
from palms. A Minor non-compliance was issued. (See NCR T-03.07/2011)<br />
The P2K3 team responsible to assured that all P2K3 and K3 equipment, such as fire extinguishers,<br />
PPE, hydrants, P3K tool kits (medical box) are available on worksites by regular checking in the mill<br />
and estates. However, it was found that one of the operators was not wearing appropriate safety<br />
shoes as required in “IK12 rev00, dated 02.07.2010” while uprooting woody growths (Dongkel Anak<br />
Kayu) in Block 26. A Minor non-compliance was issued. (See NCR T-10.07/2011)<br />
PTTN has developed procedures for accidents and emergency preparadness The effectiveness of<br />
this procedure is tested every year. Workers in hazardous areas are provided training to minimize<br />
their risk in an annual training program on safety and health issues including training for K3<br />
regulations and legislations of the Republic of Indonesia, first aid training and emergency drills.<br />
Records of work accidents were compiled every month and cases of accidents being fully investigated<br />
by the company physician which had been trained Hyperkes and assigned as P2K3 officer as<br />
required in SMK3 report, the records are kept 5 years and regularly submitted to DISNAKER, the<br />
Regional Labor Department, and JAMSOSTEK for insurance claims.<br />
Compliance Status : Not Compliant.<br />
Criterion 4.8<br />
All staff, workers, smallholders and contractors are appropriately trained<br />
Mill / estate managers have identified the training needs in each section / department to organize an<br />
annual training program. Records of training for each employee in the mill and plantations such as<br />
attendance sheets, documented training plans/ programs and records of training sessions held,<br />
Public Summary Report PT.Tapian Nadenggan –Langga Payung Mill Page 26
documented evidence of evaluation for staff/workers trained being kept. The training program in 2010<br />
- 2011 include <strong>RSPO</strong> P & C, SMK3, MSDS, First aid, PPE, Waste handling, SOP for mill and estates,<br />
emergency preparadness, training for nurses and midwives. The training also covers contractors and<br />
smallholders (independent farmers).<br />
Compliance Status : Full.<br />
Figure 6a. Emergency drills<br />
Figure 6b. Training for nurses and midwives<br />
Figure 6c. Restricted pesticides training by<br />
Pesticide Committee from Plantation Agency<br />
Figure 6d. Sprayer training by SMARTRI<br />
Figure 6e. MSDS training by <strong>RSPO</strong> Coordinator<br />
Figure 6f. Welding training by Labor Agency<br />
Public Summary Report PT.Tapian Nadenggan –Langga Payung Mill Page 27
Criterion 5.1<br />
Aspects of estate and mill management, including replanting, that have environmental impacts<br />
are identified, and plans to mitigate the negative impacts and promote the positive ones are<br />
made, implemented and monitored, to demonstrate continuous improvement<br />
PTTN has conducted the assessment of environmental impacts that has been mentioned in Environmental<br />
Impact Assessment (AMDAL and RKL-RPL). This document has been approved by the Regional<br />
Environmental Impact Control Agency (BAPEDALDA) and every 6 months PTTN shall submit the<br />
progress reports, namely Monitoring Report of RKL-RPL to the agency. Last records of Semester II,<br />
July-December 2010, was sent to the Environmental Protection Agency of Padang Lawas District,<br />
North Sumatera Province, on February 10,2011. It was confirmed that the PTTN done this obligation,<br />
and kept the record of submission letter properly. The environmental parameters reported in all mill<br />
and estates are such as:<br />
Liquid wastes, recorded monthly<br />
Water quality in the observation well, recorded every 6 months<br />
Gaseous emissions are recorded every 6 months<br />
Soil fertility is analysed yearly<br />
Hazardous wastes, recorded every three months.<br />
There is replanting program for all 3 estates, and PTTN has identified aspects of the replanting in<br />
AMDAL document.<br />
Until now, there is no correction from BAPEDALDA regarding the report since the test result complied<br />
with the regulation. PTTN will revise the AMDAL documents and the consultation will be held with<br />
relevant stakeholders if there were change in their operation as required by regulation, for example :<br />
POME (palm oil mill effluent) has been permitted to be used as land application after the research<br />
conducted by University of North Sumatera. Any adverse impacts identified will be studied for<br />
mitigation. Mitigation plans for land application such as :<br />
regular flatbeds monitoring for POME application to avoid leakage of POME into the drains and<br />
rivers<br />
the last two or three fladbeds remained empty to avoid uncontrollable flow.<br />
PTTN also conduct water quality analysis from observation wells in communities housing complex<br />
nearby the land application location<br />
Compliance Status : Full.<br />
Figure 7a. Regular flatbeds monitoring<br />
Figure 7b. The last two flatbeds remained empty<br />
Public Summary Report PT.Tapian Nadenggan –Langga Payung Mill Page 28
Criterion 5.2<br />
The status of rare, threatened or endangered species and high conservation value habitats, if<br />
any, that exist in the estate or that could be affected by estate or mill management, shall be<br />
identified and their conservation taken into account in management plans and operations.<br />
PTTN had a HCV assessment done on 7-10 August 2010 at Normark Estate and on 13-20 August<br />
2010 for Langga Payung Estate and Paya Baung Estate by HCV Team from` Environmental<br />
Department that consists of <strong>RSPO</strong> approved HCV assessors, such as Norman FM, Nugroho Wahyu,<br />
Bambang Setyaji. which has identified HCV area that cover of total area 483.98 ha. The HCV’s areas<br />
are recognized with HCV’s 1.1, 1.2 and 4.1.. The peer review has been conducted by independent<br />
consultant, Ir. Siswo, M.Si Public consultation for HCV has been done on 3-4 Novemebr 2010. The<br />
HCV’s area was identified with sufficient signboards that contain warnings of what people should not<br />
do to the protected HCVs such as prohibition to practice land burning. hunt protected animsal, illegal<br />
fishing that can damaged the river/ body water (poisoning, using exploding materials, illegal logging<br />
and disturb protected flora. Identification of HCV’s was recorded in” List of Protected Species”of<br />
operating procedure SOP/PBNE/KPHCV, which identified of 6 aves, 2 mammals and 1 reptil and 2<br />
protected flora according to CITES, IUCN or national regulation PP 7 Year 1999. Some sites of Bunga<br />
bangkai (Amorphopalus sp) were found during visit and protected by bamboo fences. There is HCV<br />
management plan and monitoring program developed by Environmental Department, while HCV<br />
monitoring is conducted by trained HCV officers in each estates.<br />
Compliance Status : Full.<br />
Criterion 5.3<br />
Waste is reduced, recycled, re-used and disposed of in an environmentally and socially<br />
responsible manner<br />
PTTN has identified all waste and pollutions sources in the mill and estates and listed them in<br />
accordance with its related procedure that classified the wastes as office wastes, household wastes,<br />
mill wastes, workshop wastes and pesticide wastes. The records of actual wastes in the mill and<br />
estates are documented properly in Wastes Management Plan (5.3.1). Suitable methods have been<br />
established to minimize the production of wastes and to minimize their environmental impacts. EFB is<br />
used to mulch young palms in the field near mill in Langga Payung Estate Division II, IV, V and VI with<br />
the dosage 30 t/ha, liquid wastes treated as in Instalasi Pengolah Air Limbah /IPAL (waste water<br />
treatment) to reduce their BOD and COD, with their pH monitored to the requisite standards.<br />
Analyses of POME for BOD, COD and pH are done regularly to ensure the parameters meet the<br />
standards, the last report in Semester II 2010 ( 5.3.2 and 5.3.4) showing compliance. POME is used<br />
as land application in the field near mill in Langga Payung Estate instead of dispatching into rivers or<br />
body waters.<br />
The hazardous waste were collected by licensed contractor and the records of hazardous waste<br />
manifest were well maintained. PTTN has a plan to return the waste container to the vendor and the<br />
mutual agreement has been signed. (5.3.3).<br />
Compliance Status : Full.<br />
Criterion 5.4<br />
Efficiency of energy use and use of renewable energy is maximized<br />
PTTN has a renewable energy program in which it continually strives to improve energy efficiency and<br />
use more renewable vis-à-vis fossil fuels. The mill have energy use monitoring records in kilowatt<br />
hours per tonne of palm product, and has program to increase energy efficiency by reducing fossil fuel<br />
consumption, since the generator set is only used as backup to generate electricity when the main<br />
turbine is down. Regular maintenance of mill engines ( e.g: boiler, sterilizer, BPV, Steam separator,<br />
Motor Compressor, turbine) and motor vehicles also contribute to increase energy efficiency rate.<br />
Compliance Status : Full.<br />
Public Summary Report PT.Tapian Nadenggan –Langga Payung Mill Page 29
Criterion 5.5<br />
Use of fire for waste disposal and for preparing land for replanting is avoided except in<br />
specific situations, as identified in the ASEAN guidelines or other regional best practices<br />
The use of fire for any waste disposal is strictly prohibited such as in land preparation for new<br />
development and replanting. PTTN has a well implemented zero burning policy both in mill and<br />
estates. The wastes that are generated by mill and plantation activities are properly disposed off<br />
without burning. A notable achievement has been the total avoidance of use of fire for the disposal of<br />
garden wastes and packaging materials at the housing sites.<br />
Compliance Status : Full.<br />
Criterion 5.6<br />
Plans to reduce pollution and emissions, including greenhouse gases, are developed,<br />
implemented and monitored<br />
PTTN has identified pollution and emission sources, which comes mainly from boilers, generator sets<br />
and motor vehicles (5.6.1). Monitoring of their exhaust emissions is done regularly by independent<br />
laboratory - the smoke opacity results are recorded as part of its RKL-RPL (Environment Management<br />
and Monitoring) Semester Report. The parameters tested for are SO 2 , NO 2 , H 2 S and particulates as<br />
per the Ministry of Environment, Republic of Indonesia, regulation Peraturan Menteri Lingkungan<br />
Hidup No. 07 Tahun 2007. A check on the reports found that the levels complied with the standards<br />
(5.6.2). PTTN has a pollution and emission reduction program in which is prohibited the burning of<br />
EFB and domestic wastes in the mill, estates and housing complex; The domestic wastes were<br />
collected by contractor.. (5.6.3). There is SOP to treat POME and the records of monitoring POME<br />
are kept properly and were sighted.<br />
Compliance Status : Full.<br />
Criterion 6.1<br />
Aspects of estate and mill management including replanting that have social impacts are<br />
identified in a participatory way, and plans to mitigate the negative impacts and promote the<br />
positive ones are made, implemented and monitored to demonstrate continuous improvement<br />
PTTN has a method to monitor social information from the locals and its employees through SOP on<br />
Communication SOP/PBNE/Kom Rev.00 issued 1 July, 2010. and also conducted . Stakeholders<br />
meeting regularly every year . Some of social issue from local communitiies that has been<br />
responded by PTTN : provide job vacancies and job opportunities for local communities by<br />
conducting open and transparent employee recruitment process. Monitoring report : data of local<br />
communities employees was well maintained. The information is assessed and the results reported<br />
to the Environment Manager and concerned parties, such as the environmental impact-controlling<br />
agency, as a part of RKL/ RPL. The RKL/ RPL report covered the classifying the activities into<br />
negative and positive impact. The positives impact such as labour vacancy, cover crop planting,<br />
planting of main crops, maintenance of immature and mature crops. The negative impact arised from<br />
land clearing issues, and potential land conflict. A social impact also assessed the impact of<br />
company activities on the local communities. Interviews with the stakeholders indicated that the<br />
practice has resulted in improved relationships with the local communities.<br />
Compliance Status : Full.<br />
Criterion 6.2<br />
There are open and transparent methods for communication and consultation between<br />
growers and/or millers, local communities and other affected or interested parties<br />
PTTN has an effective communication and consultation procedure with smallholders and its local<br />
communities. It has also drawn up an external communication procedure. Consultation with<br />
stakeholders is done at least yearly, and minutes of the meeting on 10.06.2011 at Langga Payung Mill<br />
Office were sighted. The feedback from stakeholder consultation meeting that approved by<br />
management will become CSR and Community Development program Adjacent estate officers are<br />
responsible for communication with the respective parties on estate activities, while the Environment<br />
and CSR Department assumes overall responsibility for communication and consultation with<br />
stakeholders and to ensure that community programs are run effectively. A list of PTTN stakeholders<br />
includes the local communities, NGOs, labour union, contractors and local government.<br />
Compliance Status : Full.<br />
Public Summary Report PT.Tapian Nadenggan –Langga Payung Mill Page 30
Figure 8. Stakeholders meeting at Langga Payung Mill Office on 10.06.2011<br />
Criterion 6.3<br />
There is a mutually agreed and documented system for dealing with complaints and<br />
grievances, which is implemented and accepted by all parties<br />
PTTN has a complaints, grievance and dispute procedure as stated in “SOP Penanganan Keluh<br />
Kesah dan Ketidakpuasan No. PT. TN-LPYM/<strong>RSPO</strong>-SOP/02, Internal complaints and grievances are<br />
also resolved according the Mutual Working Agreement (Perjanjian Kerja Bersama). These<br />
procedures have been communicated to all stakeholders at each mill / estates. Interviews during<br />
public consultation confirmed that they understood the procedure well. It was noted that the<br />
responses from stakeholders have been positive that the company respond to the complaint from<br />
stakeholders, such as to give priority for job vacancies to local communities than outsider. During<br />
visits to stakeholders, the audit team confirmed that there were no serious complaints, grievances and<br />
disputes at the moment. Local communities and stakeholders obey and respect the company legal<br />
rights, reciprocated by the company’s respect for their traditional rights.<br />
Compliance Status : Full.<br />
Criterion 6.4<br />
Any negotiations concerning compensation for loss of legal or customary rights are dealt with<br />
through a documented system that enables indigenous people, local communities and other<br />
stakeholders to express their views through their own representative institutions<br />
PTTN has developed “Pedoman Teknis Persiapan Lahan SMART No.<br />
SOP/NP/SMART/XII/MCAR001 dated on 01.07.2010, Chapter XII to resolve land conflict. In this<br />
certification assessment, the audit team studied the whole compensation mechanism, and found it<br />
satisfactory with no legal action being taken by any party against another. The mechanism has been<br />
communicated to the stakeholders. Checks on the records and interviews with the local communities<br />
confirmed that there is no current claim on any land. Based on HCV studies and ANDAL report there<br />
is no customary rights of local community. Inteviews with the Chief of Local Community confirmed that<br />
they have no customary rights.<br />
Compliance Status : Full.<br />
Public Summary Report PT.Tapian Nadenggan –Langga Payung Mill Page 31
Criterion 6.5<br />
Pay and conditions for employees and for employees of contractors always meet at least the<br />
legal or industry minimum standards and are sufficient to provide decent living wages<br />
A policy on pay and working conditions in PTTN was established in Perjanjian Kerja Bersama or<br />
Mutual Working Agreement that dealt with BKS-PPSS (Badan Kerja Sama Perusahaan Perkebunan<br />
Sumatera). The salary scales and conditions of work are described in detail for all the positions of<br />
employment. PTTN follows all the legislations on working days, working time, salary levels, regional<br />
minimum pay and employee insurance, deductions, sickness, holiday entitlement, maternity leave,<br />
dismissal reasons, period of notice for termination . HRD staff inform the workers before-hand of their<br />
salary adjustments whenever any are in the offing. The policy about wages is also socialized in<br />
agreements with contractors, for example :agreeement with CV. Bintang Meriah mention that the<br />
contractor shall in compliance with relevant labor regulation and the contractor’s workers shall be<br />
covered by JAMSOSTEK.(6.5.1.and 6.5.4). Records were sighted that the pay complied with the<br />
regional minimum salary for North Sumatra in January 2011 as stated by Decree of Governor North<br />
Sumatera No.188.44/674/KPTS/2010. A daily permanent worker (Syarat Kerja Umum Harian or<br />
Pekerja Harian Tetap), will get Rp 1,090,425 a month, above regional minimum salary which was Rp<br />
1,035,500,- Employees also provided with rice allowance, for head of family is 15 kg plus 9 kg for<br />
wife and 7.5 kg for each children (maximum 3 children). All PTTN permanent employees are insured<br />
under JAMSOSTEK. All workers, if heads of families, are provided with a housing unit type G2 (48<br />
m2), equipped with electricty and piped clean water for washing and bath, however the test analysis<br />
of potable water using reverse osmosis method fulfill the requirements of potable water standard by<br />
PerMenkes/416/1990. There are 3 company clinics in housing site and one central clinic where sick<br />
employees / dependents get free treatment. The more serious cases are referred to the regional<br />
hospital. There are nearby state schools ( 1 kindergarten, 4 elementary schools, and 1 junior high<br />
school which have been donated by PTTN as CSR program (6.5.3).<br />
Compliance Status : Full.<br />
Criterion 6.6<br />
The employer respects the right of all personnel to form and join trade unions of their choice<br />
and to bargain collectively. Where the right to freedom of association and collective<br />
bargaining are restricted under law, the employer facilitates parallel means of independent and<br />
free association and bargaining for all such personnel<br />
PTTN has an agreement with the workers and management staff to allow them to establish a labour<br />
union in accordance with national legislation UU No. 13/ 2003. However, only non-staff employees<br />
can be Union officers to obviate any conflict of interest. The Union and management of PTTN<br />
negotiate the Perjanjian Kerja Bersama, or Mutual Working Agreement regularly. The minutes of<br />
some meetings were checked and the meetings found to be properly conducted. Union Worker also<br />
provided with the facility of room/ building and furniture.<br />
Compliance Status : Full.<br />
Criterion 6.7<br />
Children are not employed or exploited. Work by children is acceptable on family farms, under<br />
adult supervision, and when not interfering with education programmes. Children are not<br />
exposed to hazardous working conditions.<br />
PTTN has a policy on child and female workers as stated in “Peraturan Perusahaan PT. Smart SE<br />
larangan mempekerjakan anak di bawah umur No. 002/SE-HRDV/03/09” dated on 13.01.2009 and<br />
socialized in agreements with suppliers / contractors (6.7.1). No one under 18 years of age is to be<br />
employed. Records of personal data of employees - age, marital status, position and rank, location of<br />
work, date of commencing employment - are kept. Checking the records of the last recruitment on<br />
26.12.2010 confirmed that no one under 18 years old has been employed - in compliance with<br />
Indonesian national legislation UU RI No. 13 Tahun 2003, article 68 . (6.7.2).<br />
Compliance Status : Full.<br />
Public Summary Report PT.Tapian Nadenggan –Langga Payung Mill Page 32
Criterion 6.8<br />
Any form of discrimination based on race, caste, national origin, religion, disability, gender,<br />
sexual orientation, union membership, political affiliation, or age, is prohibited.<br />
A policy on equal rights regardless of race, caste, national origin, religion has been established as<br />
stated in “Peraturan Perusahaan PT. Smart Tbk pasal 5, SE No.146/CEO1-SE/04/2010” dated on<br />
13.04.2010 and also socialized in agreements with suppliers/ contractors. PTTN is an equal<br />
opportunity employer, with promotion mainly based on merit. The company policy regarding equal<br />
opportunity employer can be seen on notice boards in estates and mill office and socialized through<br />
meetings, morning muster. Males and females with same qualification status receive the same pay for<br />
the same type or same nature of job, for example administration clerk (not staff), mandor (foremen/<br />
forewomen) at estates, laboratory staff at mill. Interviews with workers and checks on records found it<br />
conformed.<br />
Compliance Status : Full.<br />
Criterion 6.9<br />
A policy to prevent sexual harassment and all other forms of violence against women and to<br />
protect their reproductive rights is developed and applied<br />
PTTN has established a policy on prevention of sexual harassment and protection of reproductive<br />
rights of its female workers such as : maternity leave, menstruation leave, breastfeeding permit as<br />
stated in “Peraturan Perusahaan pasal 5 ayat 3, SE No.145/CEO1-SE/04/2010 tanggal 13 April 2010<br />
perihal sosialisasi masalah sexual harassment“. The policy was socialized to the workers and<br />
contractors. There is gender committee establised to resolve if sexual harassment occurs. Interviews<br />
with female workers confirmed that they really understood the policy about sexual harassment and the<br />
reproductive rights.<br />
Compliance Status : Full.<br />
Criterion 6.10<br />
Growers and mill deal fairly and transparently with smallholders and other local businesses.<br />
PTTN has fair, legal and transparent agreements with its suppliers / contractors and independent<br />
smallholders/ outgrowers. There are transactions and purchase contracts with contractors and local<br />
companies on sale and purchase of FFB, FFB transport and service, maintenance and repair of mill<br />
equipment. The price for FFB is determined by the Head of Regional Plantation Section, Agriculture<br />
Department of Province North Sumatra via a mechanism based on the CPO price, kernel price (index<br />
K) from all palm oil producers and palm oil estates in North Sumatra. Interviews with some<br />
contractors confirmed that they understood the terms of their contracts well and thought them fair,<br />
legal and transparent andfound no grievance about the price. Payment to contractors and<br />
independent smallholders have always been on time as evidenced by their lack of complaints<br />
Compliance Status : Full.<br />
Criterion 6.11<br />
Growers and millers contribute to local sustainable development wherever appropriate<br />
PTTN is committed to support sustainable development of the local communities through its<br />
Corporate Social Responsibility programs which are presented in its Stakeholder meeting.<br />
Identification of projects is based on community needs, the priorities of each mill / estates and the<br />
budget available. The CSR programs in 2010-2011 are :<br />
Education:<br />
• Repairs Junior High Schools “SMP Satu Atap” and religious school in Langga Payung Estate,<br />
• Donation for Junior High School “SMP Satu Atap” in Langga Payung Estate to attend Science<br />
Olympiad in Medan.<br />
• Donation for Elementary School “SDN Mampang” and “SDN Normark” in Normark Estate.<br />
Religious program:<br />
Public Summary Report PT.Tapian Nadenggan –Langga Payung Mill Page 33
• Gifts/ packages for mosque’s administrators.<br />
• Repairs mosques in Hutabaru Nangka and Sihopuk Baru<br />
• Donation for islamic music instruments in Hutabaru Nangka.<br />
• Donation for MTQ (Al Qur’an recital contest) in Sei Kanan, Halongonan and Padang Lawas<br />
Utara<br />
Social<br />
• Heavy equipments aid to repair road in Batang Gogar Village and Situmbaga Village.<br />
• Bridge repair in Siancimun Village.<br />
• Clean water supply for villagers.<br />
• Bazaar/ cheap market for local community<br />
Health<br />
• Mass circumcision for moslem boys in Sei Kanan.<br />
• Eye medication for students in Elementary School in SDN Sei Kanan Halongonan<br />
• Nutrition supplements for infants and pregnant/ breastfeeding women in Sei Kanan<br />
Compliance Status: Full.<br />
Figure 9a. CSR social programs : road maintenance in Batang Gogar Village and Situmbaga Village<br />
.<br />
Figure 9b: CSR for religion program : packages for mosque’s administrator and donation for Islamic<br />
music instruments<br />
Public Summary Report PT.Tapian Nadenggan –Langga Payung Mill Page 34
Criterion 7.1<br />
A comprehensive and participatory independent social and environmental impact assessment is<br />
undertaken prior to establishing new plantings or operations,or expanding existing ones, and the<br />
results incorporated into planning, management and operations.<br />
There are no new plantings in PTTN supply base plantations , thus, this criterion is Not Applicable.<br />
Criterion 7.2<br />
Soil surveys and topographic information are used for site planning in the establishment of new<br />
plantings, and the results are incorporated into plans and operations.<br />
There are no new plantings in PTTN supply base plantations , thus, this criterion is Not Applicable.<br />
Criterion 7.3<br />
New plantings since November 2005, have not replaced primary forest or any area required to<br />
maintain or enhance one or more High Conservation Values<br />
There are no new plantings in PTTN supply base plantations , thus, this criterion is Not Applicable.<br />
Criterion 7.4<br />
Extensive planting on steep terrain, and/or on marginal and fragile soils, is avoided.<br />
There are no new plantings in PTTN supply base plantations , thus, this criterion is Not Applicable.<br />
Criterion 7.5<br />
No new plantings are established on local peoples’ land without their free, prior and informed<br />
consent, dealt with through a documented system that enables indigenous peoples, local<br />
communities and other stakeholders to express their views through their own representative<br />
There are no new plantings in PTTN supply base plantations , thus, this criterion is Not Applicable.<br />
Criterion 7.6<br />
Local people are compensated for any agreed land acquisitions and relinquishment of rights, subject<br />
to their free, prior and informed consent and negotiated agreement<br />
There are no new plantings in PTTN supply base plantations , thus, this criterion is Not Applicable.<br />
Criterion 7.7<br />
Use of fire in the preparation of new plantings is avoided other than in specific situations, as<br />
identified in the ASEAN guidelines or other regional best practice.<br />
There are no new plantings in PTTN supply base plantations , thus, this criterion is Not Applicable.<br />
Criterion 8.1<br />
Growers and millers regularly monitor and review their activities and develop and implement<br />
action plans that allow demonstrable continuous improvement in key operations.<br />
PTTN has committed to a process of continuous improvement by adopting the <strong>RSPO</strong> P & C and getting<br />
certified QMS ISO 9001 for and SMK3 for Langga Payung POM. An internal audit and management<br />
review is done at least yearly to evaluate the systems. Action plans have been developed for the next<br />
one to three years for continual improvement in key operations through quality objectives for the mill<br />
and also can be implemented in estates, The continual improvement program are typically similar for<br />
the mill and 3 estates, but the target date it depends on the estate capability and resources such as<br />
reducing fossil fuel consumption, reducing usage of agrochemicals especially paraquat, and has plan to<br />
return waste container to the vendor.<br />
Compliance Status : Full.
3.2. Detailed Non-Conformity Report, Corrective Actions Taken and Auditors’ Conclusions<br />
Non Conformity Report – T01.07/11<br />
Date of issued 07.07.2011 NCR issued by : Wieke Savitri<br />
Location<br />
PT. Tapian Nadenggan (Langga Payung<br />
Estate)<br />
Discussed with<br />
: Managers and staffs<br />
<strong>RSPO</strong> – Criterion : 4.1<br />
Operating procedures are appropriately documented and consistently implemented and<br />
monitored.<br />
Description of Finding:<br />
In Standard Operating Procedure for replanting doesn’t explain the timetable to plant legume cover<br />
crops.<br />
Classification Major Minor<br />
Corrective Action Taken:<br />
Had revised the Working Instruction IK/LPYE/RPL/04 “Nursery, Planting and Maintenance of<br />
Legumes Cover Crops” dated on 15.07.2011 by defining the timetable to plant LCC 2 weeks after<br />
chipping process in flat area or 2 weeks after terracing process in undulating area.<br />
Auditee sign:<br />
Auditor Comments:<br />
Auditor Comments and Conclusion<br />
To check in next verification visit<br />
Appropriate action not taken<br />
Appropriate action taken<br />
Corrective action in compliance with the requirement<br />
Date of verification: 06.09.2011<br />
Auditor(s) sign:<br />
Public Summary Report PT. Tapian Nadenggan‐Langga Payung Mill Page 36
Non Conformity Report – T02.07/11<br />
Date of issued 07.07.2011 NCR issued by : Wieke Savitri<br />
Location<br />
PT. Tapian Nadenggan (Langga Payung<br />
Estate)<br />
Discussed with<br />
<strong>RSPO</strong> – Criterion : 4.3<br />
Practices minimise and control erosion and degradation crisis.<br />
: Managers and staffs<br />
Description of Finding:<br />
It was found during the field visit that the replanting area in Division 1 (LPYE11B21) with slopes of<br />
16-40% was not appropriately covered with Mucuna bracteata<br />
Classification Major Minor<br />
Corrective Action Taken:<br />
Mucchuna brachteata has been planted in Division 1 (LPYE11B21) since July to August 2011 for<br />
total area 37.83 ha as required by Working Instruction IK/LPYE/RPL/04 dated on 15.07.2011 by<br />
monitoring the rainfall.<br />
Auditee sign:<br />
Auditor Comments:<br />
Auditor Comments and Conclusion<br />
To check in next verification visit<br />
Appropriate action not taken<br />
Appropriate action taken<br />
Corrective action in compliance with the requirement<br />
Date of verification: 06.09.2011<br />
Auditor(s) sign:<br />
Public Summary Report PT. Tapian Nadenggan‐Langga Payung Mill Page 37
Non Conformity Report – T03.07/11<br />
Date of issued 07.07.2010 NCR issued by : Wieke Savitri<br />
Location<br />
PT. Tapian Nadenggan (Langga P ayung<br />
Estate, Paya Baung Estate), Normark<br />
Estate)<br />
Discussed with<br />
: Managers and staffs<br />
<strong>RSPO</strong> – Criterion : 4.7<br />
An occupational health and safety plan is documented, effectively communicated and and implemented.<br />
Description of Finding:<br />
None of harvesting workers wear safety helmet in Langga Payung Estate, Paya Baung Estate and<br />
Normark Estate because the company doesn’t provide it for workers. The risk assessment and<br />
related SOP do not emphasize the need to wear appropriate PPE against the risk of being hit by<br />
harvested FFB fallen from palms..<br />
Classification Major Minor<br />
Corrective Action Taken:<br />
1. Had revised the “Hazard Identification Risk Assessment and Control (HIRAC) and<br />
WorkingInstruction of Fruit Harvesting IK/PBNE/PNN/01” by providing the appropriate PPE<br />
for workers<br />
2. Had made Purchase Order and distributed safety helmets and goggles to the workers<br />
Auditee sign:<br />
Auditor Comments:<br />
Auditor Comments and Conclusion<br />
To check in next verification visit<br />
Appropriate action not taken<br />
Appropriate action taken<br />
Corrective action in compliance with the requirement<br />
Date of verification:06.09.2011<br />
Auditor(s) sign:<br />
Public Summary Report PT. Tapian Nadenggan‐Langga Payung Mill Page 38
Non Conformity Report – T04.07/11<br />
Date of issued 07.07.2010 NCR issued by : Anita Masduki<br />
Location<br />
PT. Tapian Nadenggan<br />
(Payabaung Estate)<br />
Discussed with<br />
: Managers and staffs<br />
<strong>RSPO</strong> – Criterion : 4.1<br />
Operating procedures are appropriately documented and consistently implemented and<br />
monitored<br />
Description of Finding:<br />
There was not clear which operating working instruction (WI) implemented in weeding, spraying<br />
and harvesting process, as there were two IK available: IK-12, IK-20, IK-21 (Rev 00, dated 02.07<br />
2011) or IKPBNE/01, 02, 04 (Rev.00, dated 01.07 2011<br />
Classification Major Minor<br />
Corrective Action Taken:<br />
1. Had revised the Working Instruction for weeding IK/PBNE/PNN/01; spraying<br />
IK/PBNE/TBM/03and harvesting process IK/PBNE/TBM/04 rev.01 dated on 15.07.<br />
2. Had withdrawn all the obsolete documents and distributed those that had been currently<br />
revised.<br />
Auditee sign:<br />
Auditor Comments:<br />
Auditor Comments and Conclusion<br />
To check in next verification visit<br />
Appropriate action not taken<br />
Appropriate action taken<br />
Corrective action in compliance with the requirement<br />
Date of verification: 06.09.2011<br />
Auditor(s) sign:<br />
Public Summary Report PT. Tapian Nadenggan‐Langga Payung Mill Page 39
Non Conformity Report – T05.07/11<br />
Date of issued 07.07.2010 NCR issued by : Anita Masduki<br />
Location<br />
PT. Tapian Nadenggan<br />
(Payabaung Estate)<br />
Discussed with<br />
: Managers and staffs<br />
<strong>RSPO</strong> – Criterion : 4.7<br />
Operating procedures are appropriately documented and consistently implemented and<br />
monitored<br />
Description of Finding:<br />
There was no record or evidence that clinical weighing scale and stethoscope in Paya Baung clinic<br />
are in good condition.<br />
Classification Major Minor<br />
Corrective Action Taken:<br />
1. Had carried out calibration for all weighing scales and rectification for stethoscopes<br />
2. Had updated the status of the master list of equipment.<br />
Auditee sign:<br />
Auditor Comments:<br />
Auditor Comments and Conclusion<br />
To check in next verification visit<br />
Appropriate action not taken<br />
Appropriate action taken<br />
Corrective action in compliance with the requirement<br />
Date of verification:06.09.2011<br />
Auditor(s) sign:<br />
Public Summary Report PT. Tapian Nadenggan‐Langga Payung Mill Page 40
Non Conformity Report – T06.07/11<br />
Date of issued 07.07.2010 NCR issued by : Anita Masduki<br />
Location<br />
PT. Tapian Nadenggan<br />
(Payabaung Estate)<br />
Discussed with<br />
: Managers and staffs<br />
<strong>RSPO</strong> – Criterion : 4.7<br />
Operating procedures are appropriately documented and consistently implemented and<br />
monitored<br />
Description of Finding:<br />
There was no working instruction for nurses to prescribe medicine for patients, especially antibiotic.<br />
Classification Major Minor<br />
Corrective Action Taken:<br />
Had established Internal Memo regarding medicine labeling, i.e: prescription for medicine with red<br />
label should only be given under medical doctor’s supervision supervision.<br />
Auditee sign:<br />
Auditor Comments:<br />
Auditor Comments and Conclusion<br />
To check in next verification visit<br />
Appropriate action not taken<br />
Appropriate action taken<br />
Corrective action in compliance with the requirement<br />
Date of verification:06.09.2011<br />
Auditor(s) sign:<br />
Public Summary Report PT. Tapian Nadenggan‐Langga Payung Mill Page 41
Non Conformity Report – T07.07/11<br />
Date of issued 07.07.2010 NCR issued by : Anita Masduki<br />
Location<br />
PT. Tapian Nadenggan<br />
(Payabaung Estate)<br />
Discussed with<br />
: Managers and staffs<br />
<strong>RSPO</strong> – Criterion : 4.7<br />
Operating procedures are appropriately documented and consistently implemented and<br />
monitored<br />
Description of Finding:<br />
Medical waste from Payabaung clinic, periode April-June was kept not in appropriate manner, such<br />
as no labelled of waste, and not kept in appropriate place.<br />
Classification Major Minor<br />
Corrective Action Taken:<br />
1. Medical waste from period April – June 2011 had been sent to Medical Center Padang Halaban<br />
before it burned in incinerator at Rantau Parapat Hospital<br />
2. Had established rain and leakage proof medical waste storage which is properly locked to<br />
avoid unintended usage..<br />
Auditee sign:<br />
Auditor Comments:<br />
Auditor Comments and Conclusion<br />
To check in next verification visit<br />
Appropriate action not taken<br />
Appropriate action taken<br />
Corrective action in compliance with the requirement<br />
Date of verification:<br />
Auditor(s) sign:<br />
Public Summary Report PT. Tapian Nadenggan‐Langga Payung Mill Page 42
Non Conformity Report – T08.07/11<br />
Date of issued 07.07.2010 NCR issued by : Anita Masduki<br />
Location<br />
PT. Tapian Nadenggan<br />
(Payabaung Estate)<br />
Discussed with<br />
: Managers and staffs<br />
<strong>RSPO</strong> – Criterion : 4.6<br />
Agrochemicals are used in a way that does not endanger health or the environment. There is<br />
no prophylatic use of pesticides, except in specific ituations identified in national Best<br />
Practice guidelines. Where agrochemicals are used that are categorised as World health<br />
Organisation Type 1A or 1B,or are listed by the Stockholm or Rotterdam Conventions,<br />
growers are actively seeking to identify alternatives, and this is documented.<br />
Description of Finding:<br />
Working instruction regarding handlling of hazardous agrochemicals spill (SOP /PBE/LBH<br />
(Rev,00, 1 Juli 2010) was not found in Agrochemical Warehouse of Payabaung Estate. Symbol of<br />
hazardous chemicals was not in apropriate manner and the person in charge who handle<br />
agrochemicals found has not enough competence in his job, i.e MSDS, symbol, and working<br />
instruction.<br />
Classification Major Minor<br />
Corrective Action Taken:<br />
1. Working Instruction regarding handing of hazardous agrochemicals spill has been placed in<br />
Agrochemical Warehouse.<br />
2. Hazardous chemical symbols and MSDS have been positioned in proper place.<br />
3. Had conducted refresher training for warehouse helpers on 18.07.2011.<br />
Auditee sign:<br />
Auditor Comments:<br />
Auditor Comments and Conclusion<br />
To check in next verification visit<br />
Appropriate action not taken<br />
Appropriate action taken<br />
Corrective action in compliance with the requirement<br />
Date of verification:06.09.2011<br />
Auditor(s) sign:<br />
Public Summary Report PT. Tapian Nadenggan‐Langga Payung Mill Page 43
Non Conformity Report – T09.07/11<br />
Date of issued 07.07.2010 NCR issued by : Anita Masduki<br />
Location<br />
PT. Tapian Nadenggan<br />
(Payabaung Estate)<br />
Discussed with<br />
: Managers and staffs<br />
<strong>RSPO</strong> – Criterion : 4.6<br />
Agrochemicals are used in a way that does not endanger health or the environment. There is<br />
no prophylatic use of pesticides, except in specific ituations identified in national Best<br />
Practice guidelines. Where agrochemicals are used that are categorised as World health<br />
Organisation Type 1A or 1B,or are listed by the Stockholm or Rotterdam Conventions,<br />
growers are actively seeking to identify alternatives, and this is documented.<br />
Description of Finding:<br />
MSDS of Rollixone in Agrochemical Warehouse at Payabaung Estate, and also for other MSDS,<br />
indicated that there must be shower water and soap available if emergency situation happened.<br />
The shower water was available, but it didn’t work and there was no soap available in place. The<br />
facility doesn’t provide bin for hazardous wastes, sand, and fabric cotton waste as required by<br />
SOP/PBNE/LBH (Rev.00, dated 01.07.2011.<br />
Classification Major Minor<br />
Corrective Action Taken:<br />
1. Emergency shower has been equipped with soap and water tank which can always operate if<br />
emergency situation happened.<br />
2. Had provided hazardous waste bin and fabric cotton as required under SOP/PBNE/LBH.<br />
Auditee sign:<br />
Auditor Comments:<br />
Auditor Comments and Conclusion<br />
To check in next verification visit<br />
Appropriate action not taken<br />
Appropriate action taken<br />
Corrective action in compliance with the requirement<br />
Date of verification:06.09.2011<br />
Auditor(s) sign:<br />
Public Summary Report PT. Tapian Nadenggan‐Langga Payung Mill Page 44
Non Conformity Report – T10.07/11<br />
Date of issued 07.07.2010 NCR issued by : Anita Masduki<br />
Location<br />
PT. Tapian Nadenggan<br />
(Payabaung Estate)<br />
Discussed with<br />
: Managers and staffs<br />
<strong>RSPO</strong> – Criterion : 4.7<br />
An occupational health and safety plan is documented, effectively communicated and and implemented.<br />
Description of Finding:<br />
One of the operators was not wearing appropriate safety shoes as required in IK12 rev00,<br />
dated 02.07.2010 while uprooting woody growths (Dongkel Anak Kayu) in Block 26.<br />
Classification Major Minor<br />
Corrective Action Taken:<br />
.<br />
Had provided and distributed appropriate safety shoes for weeding workers as required under IK12.<br />
Auditee sign:<br />
Auditor Comments:<br />
Auditor Comments and Conclusion<br />
To check in next verification visit<br />
Appropriate action not taken<br />
Appropriate action taken<br />
Corrective action in compliance with the requirement<br />
Date of verification:06.09.2011<br />
Auditor(s) sign:<br />
Public Summary Report PT. Tapian Nadenggan‐Langga Payung Mill Page 45
Table 7: Summary of findings by <strong>RSPO</strong> Criterion<br />
Audit type<br />
Certification Assessment<br />
Criterion Audited<br />
Compliance<br />
NC NC NC<br />
Major Minor Total<br />
1.1 Yes<br />
1.2 Yes<br />
2.1 Yes<br />
2.2 Yes<br />
2.3 Yes<br />
3.1 Yes<br />
4.1 No 2 2<br />
4.2 Yes<br />
4.3 No 1 1<br />
4.4 Yes<br />
4.5 Yes<br />
4.6 No 2 2<br />
4.7 No 5 5<br />
4.8 Yes<br />
5.1 Yes<br />
5.2 No<br />
5.3 Yes<br />
5.4 Yes<br />
5.5 Yes<br />
5.6 Yes<br />
Audit type<br />
Certification Assessment<br />
Criterion Audited Compliance<br />
NC NC NC<br />
Major Minor Total<br />
6.1 Yes<br />
6.2 Yes<br />
6.3 Yes<br />
6.4 Yes<br />
6.5 Yes<br />
6.6 Yes<br />
6.7 Yes<br />
6.8 Yes<br />
6.9 Yes<br />
6.10 Yes<br />
6.11 Yes<br />
7.1 N/A<br />
7.2 N/A<br />
7.3 N/A<br />
7.4 N/A<br />
7.5 N/A<br />
7.7 N/A<br />
7.7 N/A<br />
8.1 Yes<br />
Total of Nonconformities 4 6 10<br />
3.3.1. Noteworthy observations<br />
There is no land conflict in this area, the relationship between PTTN and local<br />
communities and other stakeholders is in harmony.<br />
<br />
<br />
<br />
<br />
<br />
<br />
The mill is certified to ISO 9001 and SMK3, making it easier for PTTN to progress to<br />
<strong>RSPO</strong> Certification;<br />
The use of paraquat is being reduced;<br />
PTTN maintains a 50 m riparian strip along its rivers as conservation area;<br />
PTTN has a zero burning policy for pollution control in its estates;<br />
EFB used for mulching young palms, besides, treated POME also applied to the fields as<br />
organic fertilizer<br />
CSR programs have improved sustainable development of the local communities.<br />
3.3.2. Some Recommendations for Improvement in the Mill and Estates:<br />
Langga Payung POM & Estate<br />
<br />
<br />
<br />
Correction factor should be considered in status label of monitoring devices to ensure that<br />
the amount of deviation in a measurement that is accounted for in the calibration process.<br />
Data of dominant diseases should be classified between workers and family of workers to<br />
identify work-related diseases/ disorder or common diseases.<br />
Medical waste bin should be covered.<br />
Public Summary Report PT. Tapian Nadenggan‐Langga Payung Mill Page 46
Some records should be signed by authorized person.<br />
Waste pond should be bordered by fences.<br />
Agrochemical in warehouse should be placed on pallets or shelves not directly on the floor.<br />
The same documents/ procedures at mill and estates should be in line not overlapping.<br />
Paya Baung Estate :<br />
Report of RKL-RPL should follow the Technical Manual of RKL-RPL issued by related<br />
Ministry.<br />
A cheklist should be established to monitor FFB transporter equipped with safety net, ropes,<br />
PPE as required by SPK No.PBNE/JKTO/01/11/001-ATBS dated onl 03.01.2011.<br />
Normark Estate<br />
Benchmark for Normark Estate Office at coordinate 1°50'57" N, 99°59'53" should be<br />
adjusted. .<br />
List of Fire Fighting Equipments should be provided with pump capacity data, e.g; Suction<br />
head (M), L/second.<br />
CSR activities have been carried out in social, economical , educational and health sectors<br />
partially not comprehensively to all surrounding villages, it should be better if it can be<br />
improved into Community Development Program by involving the community (PRA,<br />
Participative Rural Appraisal).<br />
3.4. Issues raised by stakeholders and findings of the assessment team<br />
The audit team did not receive any major complaints in the stakeholder meeting on environmental<br />
impacts and social performance of the mill and estate operations. Most of the stakeholders agreed<br />
that PTTN has had a positive influence in the area. Interviews were used to obtain feedback –<br />
whether positive or negative - from the stakeholders, for which the audit team had prepared some<br />
questions. The questions are given in Section 2.10.<br />
A stakeholder meeting was held on June 10, 2011 by PTTN to obtain feedback - positive or<br />
negative – on its <strong>RSPO</strong> Certification Assessment. The minutes were taken along with PTTN<br />
responses to the queries made. Most of the stakeholder comments on <strong>RSPO</strong> certification were<br />
positive, and support <strong>RSPO</strong> certification for PTTN, under which were usually requests for help.<br />
TUV NORD led Public consultation meeting with stakeholders on July 05, 2011. The<br />
stakeholders meeting conducted by assessor team without the presence of the company<br />
personnel/staff to obtain more comprehensive feedback.<br />
Some comments are given below:The CSR Program for Budgeting year 2012 and “ expectation<br />
of stakeholders” should be monitored, e.g :<br />
- Providing school buses<br />
- Donation for elder people<br />
- Scholarship for student in need<br />
- Build facility for public bath and wash<br />
- Building passing road to Normark<br />
- Community Development for raising cattle.<br />
Public Summary Report PT. Tapian Nadenggan‐Langga Payung Mill Page 47
3.5 Certified organization’s acknowledgement of internal responsibility<br />
Please sign on the certification assessment and confirm acceptance of this assessment report,<br />
including its findings. The company General Manager and Senior Manager will sign for the certification<br />
assessment report. The complete signatures can be seen in Section 3.6.<br />
Public Summary Report PT. Tapian Nadenggan ‐Langga Payung Mill Page 48
3.6 Formal sign-off of assessment findings<br />
Medan,<br />
September.2011<br />
Head of Environment and CSR<br />
Coordination<br />
Signed for and on behalf of<br />
PT. Tapian Nadenggan<br />
CEO PSM 1<br />
Ismu Zulfikar<br />
Antonius Costan<br />
Jakarta,<br />
September.2011<br />
Signed for and on behalf of<br />
PT. TÜV NORD Indonesia – System Certification Management<br />
Auditor<br />
: Wieke Savitri<br />
Public Summary Report PT.Tapian Nadenggan –Langga Payung Mill Page 49
ANNEX A :<br />
<strong>RSPO</strong> SUPPLY CHAIN CHECKLIST FOR LANGGA PAYUNG MILL (MASS BALANCE MODUL)<br />
PT. Tapian Nadenggan, Langga Payung POM is doing some efforts to comply with the supply chain<br />
system procedures as required in the <strong>RSPO</strong> certification. The company has set the supply chain system<br />
applied in Langga Payung POM called Mass Balance.<br />
STANDARD SOP/Policy/Others Records/Evidence<br />
E.1.Documented Procedure<br />
.1.1<br />
a) Complete and up to date<br />
procedures covering the<br />
implementation of all the<br />
elements in these<br />
requirements.<br />
There is procedure SOP Supply<br />
Chain<br />
Declaraton 1<br />
Declaration 2<br />
The SOP is available on site.<br />
b) The name of the person<br />
having overall responsibility<br />
for and authority over the<br />
implementation of these<br />
requirements and<br />
compliance with all<br />
applicable requirements.<br />
This person shall be able to<br />
demonstrate awareness of<br />
the facilities procedures for<br />
the implementation of this<br />
standard.<br />
There is Decree letter assignment<br />
for SCCS Officer<br />
The Decree letter is available on site.<br />
1.2 The facility shall have<br />
documented procedures for<br />
receiving and processing<br />
certified and non-certified FFBs.<br />
E.2 Purchasing and goods in<br />
2.1 The facility shall verify and<br />
document the volumes of<br />
certified and non-certified FFBs<br />
received.<br />
FFBs has been separated based on<br />
their sources, whether from PTTN<br />
own estates (sustainable product)<br />
and the FFB from supplier (Nonsustainable).<br />
List of documented<br />
procedures for receiving and<br />
processing certified and noncertified<br />
FFB are :<br />
SOP Supply Chain<br />
SOP Receiving FFB<br />
SOP Dispatch CPO<br />
SOP FFB Processing<br />
WI Receiving FFP<br />
WI Dispatch CPO<br />
There is SOP Receiving FFB<br />
The records of documented volumes of<br />
certified and non certified FFBs can be<br />
traced down in:<br />
Laporan Penerimaan TBS Certified<br />
Tahun 2011 (Certified FFB Receiving<br />
Report 2011)<br />
Laporan Penerimaan TBS Non<br />
Certified Tahun 2011(Non-certified<br />
FFB Receiving Report 2011)<br />
Laporan Produksi CPO Certified<br />
Tahun 2011 (Certified CPO<br />
Production Report 2011)<br />
Laporan Produksi CPO Non Certified<br />
Tahun 2011(Non-certified CPO<br />
Production Report)<br />
Laporan Pengiriman CPO Certified<br />
Tahun 2011(Certified CPO Dispatch<br />
Report 2011)<br />
Laporan Pengiriman Non CPO<br />
Certified Tahun 2011(Non-certified<br />
CPO Dispatch Report 2011)<br />
The records of documented volumes of<br />
certified and non certified FFBs can be<br />
traced down in:<br />
Laporan Penerimaan TBS Certified<br />
Tahun 2011 (Certified FFB Receiving<br />
Report 2011)<br />
Laporan Penerimaan TBS Non<br />
Certified Tahun 2011(Non-certified<br />
FFB Receiving Report 2011)<br />
Public Summary Report PT.Tapian Nadenggan –Langga Payung Mill Page 50
STANDARD SOP/Policy/Others Records/Evidence<br />
2.2 The facility shall inform the CB<br />
immediately if there is a<br />
projected overproduction.<br />
Can be traced down in Production Budget<br />
Report<br />
E.3 Record keeping<br />
3.1 The facility shall maintain<br />
accurate, complete, up-to-date<br />
and accessible records and<br />
reports covering all aspects of<br />
these requirements.<br />
All documents and records have<br />
been in controlled according to SOP<br />
Pengendalian Dokumen dan<br />
Rekaman (SOP Document<br />
Control and Record Control)<br />
The records have been checked.<br />
3.2 Retention times for all records<br />
and reports shall be at least five<br />
(5) years.<br />
3.3 a) The facility shall record and<br />
balance all receipts of<br />
<strong>RSPO</strong> certified FFB and<br />
deliveries of <strong>RSPO</strong> certified<br />
CPO, PKO and palm kernel<br />
meal on a three-monthly<br />
basis.<br />
Declaration 5<br />
Retention times of all records have<br />
been determined in SOP<br />
Pengendalian Dokumen dan<br />
Rekaman (SOP Document<br />
Control and Record Control)<br />
.<br />
The records have been checked.<br />
Can be trace down in CPO Production<br />
Report 3 Monthly Basis<br />
b) All volumes of palm oil and<br />
palm kernel oil that are<br />
delivered are deducted<br />
from the material<br />
accounting system<br />
according to conversion<br />
ratios stated by <strong>RSPO</strong>.<br />
Can be trace down in CPO Stock Report<br />
and in CPO Dispatch Report<br />
c) The facility can only deliver<br />
Mass Balance sales from a<br />
positive stock. However, a<br />
facility is allowed to sell<br />
short.<br />
Declaration 6<br />
Can be trace down in CPO Stock Report<br />
and in CPO Dispatch Report<br />
3.4 The following trade names<br />
should be used and specified in<br />
relevant documents, e.g.<br />
purchase<br />
Can be trace down in Sales contract<br />
E.4 Sales and good out<br />
4.1 The facility shall ensure that all<br />
sales invoices issued for <strong>RSPO</strong><br />
certified products delivered<br />
include the following information:<br />
a) The name and address of the<br />
buyer; b) The date on which the<br />
invoice was issued; c) A<br />
description of the product,<br />
including the applicable supply<br />
chain model (Segregated) d)<br />
The quantity of the products<br />
delivered; e) Reference to<br />
related transport documentation.<br />
Declaration 4<br />
The available evidence is the invoice of oil<br />
delivery in form of Delivery Order (DO)<br />
document issued for every oil delivery.<br />
The information written on the Delivery<br />
Order document are: the invoice issue<br />
date, name and address of buyer, ordered<br />
product details, and the transportation<br />
system for product transportation.<br />
Public Summary Report PT.Tapian Nadenggan –Langga Payung Mill Page 51
STANDARD SOP/Policy/Others Records/Evidence<br />
E.5 Training<br />
5.1 The facility shall provide the<br />
training for all staff as required to<br />
implement the requirements of<br />
the Supply Chain Certification<br />
Systems.<br />
Procedure for training is described in<br />
SOP Training Human Resources<br />
Record of Training SCCS is available.<br />
E.6 Claims<br />
6.1 The facility shall only make<br />
claims regarding the use of or<br />
support of <strong>RSPO</strong> certified palm<br />
oil that are in compliance with<br />
the <strong>RSPO</strong> Rules for<br />
Communication and Claims.<br />
Declaration 7<br />
Public Summary Report PT.Tapian Nadenggan –Langga Payung Mill Page 52
Annex B :<br />
D r a f t C E R T I F I C A T E<br />
In accordance with TÜV NORD Indonesia procedures, a certificate is hereby awarded<br />
PT. Tapian Nadenggan<br />
Head Office:<br />
Jl. A Plaza BII Tower 2, 10th floor, Jl. MH. Thamrin No.51 Kav. 22<br />
Jakarta 10350<br />
Indonesia<br />
Langga Payung Palm Oil Mill<br />
Mill Location<br />
Ds . Huta Baru Nangka, Halongonan,<br />
Kabupaten Padang Lawas Utara, Nortth<br />
Sumatera<br />
GPS location<br />
Longitude (E) Latitude (N)<br />
99º 53' 13'' E 1º 39' 16'' N<br />
In recognition of the fact that it applies a Palm Oil Management System for Sustainable Palm<br />
Oil Production according with the 2008 National Interpretation of <strong>RSPO</strong> Principles and<br />
Criteria of the Republic of Indonesia for producing the following volumes of CPO and PK:<br />
Production of Crude Palm Oil and Palm Kernel<br />
CPO claimed<br />
36,906.99 t / year<br />
Palm Kernel claimed<br />
9,492.28 t/ year<br />
Certificate Registration No: TNI – <strong>RSPO</strong> – G - 1201<br />
Audit Report No. P &C-G-122<br />
Issued date of Certificate : <strong>RSPO</strong> approval date Valid Certificate : -<br />
President Director<br />
This certification was carried out in accordance with the TÜV NORD Indonesia auditing and certification procedures and is<br />
subject to regular surveillance audits. PT. TÜV NORD Indonesia is a subsidiary of TÜV NORD CERT GmbH<br />
Langemarckstrasse 20 D - 45141 Essen, Germany<br />
Public Summary Report PT.Tapian Nadenggan –Langga Payung Mill Page 53
Annex to Certificate – <strong>RSPO</strong> (Supply Base)<br />
Certificate Registration No: TNI-<strong>RSPO</strong>-G-1201<br />
The scope of certification of Mill and Supply base<br />
cover is<br />
Estate<br />
Location<br />
FFB<br />
Production<br />
(t)<br />
GPS Coordinates<br />
Longitude (E) Latitude (N)<br />
Langga<br />
Payung<br />
Estate<br />
Paya<br />
Baung<br />
Estate<br />
Ds . Huta Baru Nangka, Halongonan,<br />
Kabupaten Padang Lawas Utara,<br />
North Sumatera<br />
Ds. Huta Baringin, Simangambat<br />
Kabupaten Padang Lawas Utara,<br />
North Sumatera<br />
88,661.98<br />
47,943.19<br />
99º 53' 22'' E 1º 38' 55'' N<br />
99º 58' 31'' E 1º 37' 12'' N<br />
Normark<br />
Estate<br />
Ds. Normark, Kota Pinang,<br />
Kabupaten LabuhanbatuSelatan,<br />
North Sumatera<br />
32,503.61<br />
99º 59' 53'' E<br />
1º 50' 57'' N<br />
Public Summary Report PT.Tapian Nadenggan –Langga Payung Mill Page 54
Annex C : Certification Assessment Plan<br />
Client:<br />
PT. Tapian Nadenggan (SMART Tbk)<br />
Address: Plaza BII Tower 2, 10th floor, Jl. MH. Thamrin No.51 Kav. 22 Jakarta 10350-<br />
Indonesia<br />
MR Name, Pos.: Mr. Ismu Zulfikar<br />
Number of Mills: 1 Number of estate(s): 3 Order No. - Business No. -<br />
Mill(s), Location<br />
Estates, Locations<br />
- Langga Payung POM, Kab. Padang<br />
Lawas Utara, Sumatera Utara;<br />
Standard: <strong>RSPO</strong> P&C (Principles & Criteria) May 2008;<br />
1. Langga Payung Estate, Kab. Padang Lawas Utara,<br />
Sumatera Utara<br />
2. Paya Baung Estate, Kab. Padang Lawas Utara,<br />
Sumatera Utara<br />
3. Normark Estate, Kab. Labuhanb atu Selatan,<br />
Sumatera Utara<br />
Type of Certification Audit Audit date: 4-8.07.2011<br />
Lead<br />
Auditor:<br />
Auditor(s):<br />
Sudarmadji (SD) Expert: Hariyadi (HR), Basita Ginting<br />
(BG)<br />
Wieke Savitri (WS), Anita Audit days on-site:<br />
5 days (with traveling)<br />
Masduki (AM)<br />
Date / Time 1) Site / Shift / Organizational Unit Auditor<br />
(Abbrev.)<br />
Interviewpartner<br />
2)<br />
Day – 1: 04.07.2011 Traveling to site location from Medan to Rantau Prapat<br />
Day – 2: 05.07.2011 Langga Payung POM & Estate Office<br />
08:00-08:30 Opening meeting<br />
08:30 – 12:00<br />
- Sites: Langga Payung POM<br />
Office for all documents<br />
(legal, financial, production,<br />
environment, social) PT.<br />
Tapian Nadenggan (POM,<br />
estates : Langga Payung,<br />
Paya Baung and Normark<br />
Estate)<br />
SD, WS,<br />
AM, HR,<br />
BG<br />
SD,<br />
WS,AM,<br />
HR, BG<br />
<strong>RSPO</strong><br />
team<br />
Requirements<br />
Introduction team and fine tune audit<br />
plan (if necessary)<br />
- General issues for <strong>RSPO</strong><br />
certification assessment<br />
- The SPO documentations and<br />
records<br />
- Environmental Policy<br />
- Justification for <strong>RSPO</strong> principles<br />
and criteria<br />
- Principle – 1: 1.1, 1.2<br />
- Principle - 2: 2.1<br />
- Principle – 3: 3.1<br />
12:00 – 13:30 Break and lunch :<br />
Stakeholders contacted at Langga Payung Estate, Paya Baung Estate, Normark Estate<br />
13:30 –<br />
17:00<br />
Langga Payung Office :<br />
SD, WS,<br />
AM, HR,<br />
BG<br />
-<strong>RSPO</strong><br />
team<br />
17:00: End of day assessment<br />
Mr. Sudarmadji and Mr. Basita Ginting travelling to Normark Estate<br />
Mrs. Anita to Paya Baung Estate<br />
- Consultation, Interviews<br />
stakeholders (Indigenoes people ,<br />
NGO, Chief of village)<br />
- Housing facilities<br />
- Public facilities<br />
- School, Health program,<br />
- Social Responsibility program<br />
- Workshop, Clinic<br />
Public Summary Report PT.Tapian Nadenggan –Langga Payung Mill Page 55
Date / Time 1)<br />
Site / Shift / Organizational<br />
Unit<br />
Auditor<br />
(Abbrev.)<br />
Days – 3: 06.07.2011 Langga Payung Estate<br />
Interviewpartner<br />
2)<br />
Requirements<br />
Langga Payung :<br />
08:00 -12:00<br />
Estate Operations<br />
12:00 – 13:00 Break and lunch<br />
Langga Payung Mill:<br />
13:00-17:00<br />
Mill Operations<br />
17:00: End of day assessment<br />
WS, HR<br />
WS, HR<br />
-<strong>RSPO</strong> team<br />
<strong>RSPO</strong> team<br />
- Flora, fauna, ecology and<br />
biodiversity<br />
- Land and conversion planting<br />
- Decreased paraquat use<br />
- HCV identification<br />
- IPM (Integrated Pest Management)<br />
- Replanting and handling of<br />
chemical packaging wastes<br />
- Zero burning<br />
- Principle - 4 : 4.1, 4.2, 4.3, 4.4,<br />
4.5, 4.6, 4.7, 4.8<br />
- Principle – 5 : 5.1, 5.2, 5.5<br />
- Principle – 6 : 6.1, 6.2, 6.3, 6.5,<br />
6.6, 6.7, 6.8, 6.10, 6.11<br />
- Principle – 7<br />
- Principle – 8 : 8.1<br />
- Quality, SM-K3 and Environmental<br />
Management System.<br />
- Involved personnel and<br />
responsibilities<br />
- Chemical stores.<br />
- Monitoring and measurement of<br />
environmental performance of<br />
waste water treatment plant.<br />
- Mill operation including inspection<br />
of incoming FFB, FFB transport,<br />
road maintenance and workshops<br />
for heavy trucks, loaders, etc.<br />
- Principle - 4 : 4.1, 4.4, 4.7, 4.8<br />
- Principle – 5 : 5.4, 5.6<br />
- Principle – 6 : 6.1, 6.2, 6.3, 6.5,<br />
6.6, 6.8, 6.10, 6.11<br />
- Principle – 8 : 8.1<br />
Public Summary Report PT.Tapian Nadenggan –Langga Payung Mill Page 56
Date / Time 1) Site / Shift /<br />
Organizational Unit<br />
Days – 3: 06.07.2011 Normark Estate<br />
Auditor<br />
(Abbrev.)<br />
Interviewpartner<br />
2)<br />
Requirements<br />
08:00-12:00<br />
Sites: Normark Estate<br />
office : Estate oprations<br />
SD, BG<br />
<strong>RSPO</strong> team<br />
- Flora, fauna, ecology and<br />
biodiversity<br />
- Land and conversion planting<br />
- Decreased paraquat use<br />
- HCV identification<br />
- IPM (Integrated Pest Management)<br />
- Replanting and handling of<br />
chemical packaging wastes<br />
- Zero burning<br />
- Principle - 4 : 4.1, 4.2, 4.3, 4.4,<br />
4.5, 4.6, 4.7, 4.8<br />
- Principle – 5 : 5.1, 5.2, 5.5<br />
12:00 -13:30 Break and lunch<br />
13:30 – 17:00<br />
<br />
Estate operations<br />
SD, BG<br />
<strong>RSPO</strong> team<br />
- Principle – 6 : 6.1, 6.2, 6.3, 6.5,<br />
6.6, 6.7, 6.8, 6.10, 6.11<br />
- Principle – 7<br />
- Principle – 8 : 8.1<br />
17:00: End of day assessment Traveling to site location Langga Payung Estate<br />
Date / Time 1) Site / Shift / Organizational Unit<br />
Days – 3: 06.07.2011 Paya Baung Estate<br />
Auditor<br />
(Abbrev.)<br />
Interviewpartner<br />
2)<br />
Requirements<br />
08:00-12:00 Sites: Payabaung Estate office AM <strong>RSPO</strong> team<br />
12:00 -13:30 Break and lunch<br />
13:30 – 17:00 Estate operations<br />
AM <strong>RSPO</strong> team<br />
- Flora, fauna, ecology and<br />
biodiversity<br />
- Land and conversion planting<br />
- Decreased paraquat use<br />
- HCV identification<br />
- IPM (Integrated Pest Management)<br />
- Replanting and handling of<br />
chemical packaging wastes<br />
- Zero burning<br />
- Principle - 4 : 4.1, 4.2, 4.3, 4.4,<br />
4.5, 4.6, 4.7, 4.8<br />
- Principle – 5 : 5.1, 5.2, 5.5<br />
- Principle – 6 : 6.1, 6.2, 6.3, 6.5,<br />
6.6, 6.7, 6.8, 6.10, 6.11<br />
- Principle – 7<br />
- Principle – 8 : 8.1<br />
17:00: End of day assessments<br />
Public Summary Report PT.Tapian Nadenggan –Langga Payung Mill Page 57
Date / Time 1) Site / Shift / Organizational Unit<br />
Day- 4: 07.07.2011 Langga Payung Estate<br />
Auditor<br />
(Abbrev.)<br />
Interviewpartner<br />
2)<br />
Requirements<br />
09:00 – 12:00 Reporting and<br />
discussion<br />
12:00 -13:30 Break and lunch<br />
SD, WS,<br />
AM, HR,<br />
BG<br />
13.30 -.15.00 Closing meeting and<br />
Presentation of audit<br />
finding<br />
End of day assessment<br />
SD, WS,<br />
AM, HR,<br />
BG<br />
<strong>RSPO</strong> team<br />
Day – 5: 08.07.2011 Traveling to Medan and back to Jakarta<br />
End of Certification Assessment <strong>RSPO</strong> P & C Audit<br />
Public Summary Report PT.Tapian Nadenggan –Langga Payung Mill Page 58