Roundtable on Sustainable Palm Oil - RSPO Public Summary ...

Roundtable on Sustainable Palm Oil

Public Summary Report Report no. : RSPO P&C – 14011 – RA

Re-certification Assessment against the :

RSPO Principles & Criteria INA-NI, 2020 MY-NI, 2019

NG-NI … GH-NI …

Generic, 2018

RSPO Supply Chain Certification Standard, 2014 (Rev. June 2017)

Group Certification of FFB Production 2016 Rev.2018

RSPO P&C Certification System, June 2017

RSPO Supply Chain Certification System, June 2017

Audit can be partially performed through : Remote Audit On-site Audit

PT BARUMUN AGRO SENTOSA Aek Sigalagala POM and Its Supply Base

Padang Lawas Utara District, North Sumatra Province, INDONESIA

Date of assessment : Remote Audit : N/A On-site Audit : July 13 – 16, 2020

Report prepared by: Ibnu Satria Prabudi

(RSPO Lead Auditor)

Certification decision by: Nyoman Susila

(Director of TUV Rheinland Indonesia)

Certification Body: PT TUV Rheinland Indonesia

Menara Karya, 10th Floor Jl. H.R. Rasuna Said Block X-5 Kav.1-2

Jakarta 12950, Indonesia Tel: +62 21 57944579 Fax: +62 21 57944575

www.tuv.co.id

Accreditatation number: ASI-ACC-061 & 18 June 2019

http://www.tuv.co.id/

Re-certification Assessment Report

PT BARUMUN AGRO SENTOSA – Aek Sigalagala POM

Padang Lawas Utara District, North Sumtra Province - INDONESIA

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QMF: RSPO-007a-18(Rev.4.April 2019)

TABLE OF CONTENTS

1.0 SCOPE OF CERTIFICATION ASSESSMENT. .............................................................................. 3

2.0. DESCRIPTION OF CERTIFIATION UNIT ..................................................................................... 3

2.1 Location .................................................................................................................................................. 3 2.2. Maps ...................................................................................................................................................... 4 2.3. Supply Base Composition ..................................................................................................................... 6 2.4 Area of Plantation (Total, Planted and Mature) ..................................................................................... 7 2.5 Dates of Plantings and Replanting Cycles ............................................................................................. 8 2.6 Volume of CPO and PK recommended for Certification ..................................................................... 10 2.7 Data & Information relate of employment & social issues ................................................................... 11 2.8 Organisational Information / Contact Person ....................................................................................... 12

3.0 ASSESSMENT PROCESS ........................................................................................................... 13

3.1 Qualifications of Lead Assessor and Assessment Team .................................................................... 13 3.2. Assessment Agenda ........................................................................................................................... 14 3.3 Assessment Methodology .................................................................................................................... 16

4.0 Stakeholder Consultation and Stakeholders Contacted ......................................................... 17

5.0 Compliance to Other RSPO Requirement ................................................................................. 18

5.1. Time Bound Plan for Other Management Units .................................................................................. 18 5.2. Compliance to Rules for Partial Certification ...................................................................................... 18 5.3. Compliance to other RSPO Procedure ............................................................................................... 20 5.4. Compliance to RSPO Guidance on GHG calculation year 2019 ....................................................... 20 5.5 Plan for certification of associated smallholders.................................................................................. 22 6.2. Compliance to RSPO Role of Market Communications & Claims: .................................................... 98 6.3. Compliance to Book & Claim requirement: ......................................................................................... 98

8.0 Identified Non-conformances, Corrective Actions Taken and Auditors Conclusions ....... 100

10.0 Issues Raised by Stakeholders and Findings Pertaining to Issues ................................... 105

11.0 Certification Decision ............................................................................................................. 110

11.1 Recommendation for Certification ................................................................................................... 110 11.2 Date of Certificate Issued and Scope of Certificate ......................................................................... 110 11.3 Date of Next Surveillance Visit ..................................................................................................... 110

12.0 Acknowledgements of Internal Responsibility and Formal Sign-Off by Client ................. 111

APPENDICES ................................................................................................................................... 111

Appendix 1: Details of Certificate ............................................................................................................. 112 Appendix 2: Re-certification Assessment Plan ........................................................................................ 114 Appendix 3: List of Abbreviations ............................................................................................................. 121 Appendix 4: Other Achievement s and Certificatio Helds ........................................................................ 122 Appendix 5 : List of Stakeholders Interviewed and Contacted ................................................................ 123 Appendix 6 : Organization’s land History and information about all previous users of the land. ........... 124




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1.0 SCOPE OF CERTIFICATION ASSESSMENT.

The Re-certification was carried out on 1 (one) Palm Oil Mill (Aek Sigalagala POM) and 3 (three) Estates un-

der [Aek Kulim Estate, Aek Barumun Estate and Aek Sigala-gala Estate] owned by PT Perkebunan Nusan-tara III (Persero). There is no sanction areas in the scope of certification. There are extension scope amount 1,476.197 Ha (consist of: 48.5 Ha for Aek Sigalagala Estate and 1,427.697 Ha for Aek Kulim Estate) from pre-vious assessment. The operations of the palm oil mill(s) and its supply base of FFB were assessed against RSPO Principle and Criteria – INA NI 2018 (Approved by RSPO Board on April 20, 2020), selected Supply Chain Model according

to company’s FFB supply base is Mass Balance [MB].

Mill name & palmtrace member ID Mill 1 : Aek Sigalagala POM / RSPO_ PO1000001315

Supply base name Company owned Estate: a. Aek Kulim Estate

b. Aek Barumun Estate c. Aek Sigalagala Estate

Other operating estate owned by Company

(None)

Other Source i. PT Mega Agung Pratama ii. Koperasi Produsen Sukses Makmur Satahi (PSMS) iii. KUD Borkat Sahata Maju (BSM)

Supply Chain Model IP MB

Mill Capacity (tonnes/hour) Mill 1 60 T/H Mill 2 (None)

National Intepretation used RSPO Principle and Criteria – INA NI 2018 (Approved by RSPO Board on April 20, 2020)

2.0. DESCRIPTION OF CERTIFIATION UNIT 2.1 Location

Table 1: GPS locations for all estates and mills included in Re-certification Assessment

Name of Mill and

Estate Location

GPS locations

Latitude Longitude

Aek Sigala-gala Mill Ujung Gading Jae Village, Siman-gambat Sub District, Padang Lawas Utara District, North Su-matera Province, Indonesia

UTM : 1.621142

DMS :

1°37’16.11”N

UTM : 100.102523

DMS :

100°06’09.08”E

Aek Sigala-gala Es-tate

Ujung Gading Jae Village, Siman-gambat Sub District, Padang Lawas Utara District, North Su-matera Province, Indonesia

UTM : 1.583624

DMS :

1°36’47.2”N

UTM : 100.131176

MDS :

100°06’36.3”E

Aek Kulim Estate Jambu Tonang Village, Ujung Batu Sub District, Padang Lawas Utara District, North Sumatera Province, Indonesia

UTM : 1.65121

DMS :

1°39’04.35”N

UTM : 100.099908

DMS :

100°05’59.66”E

Aek Barumun Estate Ujung Gading Jae Village, Siman-gambat Sub District, Padang Lawas Utara District, North Su-matera Province, Indonesia

UTM : 1.604004

DMS :

1°36’14.41”N

UTM : 100.097303

DMS :

100°05’50.29”E

Name of scheme/associate SH Number of SH members

N/A N/A

N/A N/A




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2.2. Maps

Figure 1: Location map of PT Barumun Agro Sentosa- Aek Sigalagala POM in Padang Lawas Utara District

Location of Assessment




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Figure 2. Operational Map of Estate – PT Barumun Agro Sentosa




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2.3. Supply Base Composition

Table 2: FFB Supply Base Composition for Aek Sigalagala POM

FFB Contributor FFB supplied*)

Projection of FFB production or

supplied for Next License**)

Tonnes % Tonnes %

Certified category:

Company owned estates:

Aek Sigalagala Estate 85,263.81 26.85 97,878.00 1) 25.88

Aek Kulim Estate 73,487.44 23.14 110,738.00 2) 29.28

Aek Barumun Estate 111,470.30 35.10 119,157.00 31.52

Sub Total 270,221.55 85.09 327,773.00 86.68

SH/Outgrower:

(None) - - - -

Sub Total - - - -

Other companies under compa-

ny member:

(None) - - - -

Sub Total - - - -

Non-certified category :

3rd Parties:

PT Mega Agung Pratama 45,539.00 14.34 47,397.00 12.53

Koperasi PSMS 1,704.00 0.54 1,928.00 0.51

Koperasi BSM 89.00 0.03 1,064.00 0.28

Sub Total 47,332.00 14.91 50,390.00 13.32

GRAND TOTAL 317,553.55 100.00 378,163.00 100.00

Note: *) : Period of July 2019 to June 2020 **) : Period of July 2020 to June 2021 1) : The projection included from extension scope (48.5 Ha) 2) : The projection included from extension scope (1,427.697 Ha)




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Table 3: CPO and PK production and sold period of 2019 and projected for period of June 2020 to May

2021

For single supply chain model

Remarks Amount (mt)

FFB CPO PK

Certified ton-nage (license)*)

From Estate 270,249.00

54,049.80 13,512.45 From Independent Smallholder (ISH)

-

From Scheme or Asso-siate SH/Outgrower

-

Actual Production (July 2019 to June 2020)

Actual OER and KER (%) n.a 19.85 4.93

Total production 317,553.55 63,034.38 15,655.39

Total non-certified production 47,332.00 9,395.40 2,333.47

Total certified production 270,221.55 53,638.98 13,321.92

Actual Sold**) PL CL PL CL

Actual sold volume under RSPO scheme***)

n.a - 2,000.00 - 7,231.62

Actual sold volume under other scheme certified

n.a - - - -

Actual sold conventional n.a - 28,050.00 - 700.00

New (Projectied) Production (Period of July 2020 to June 2021)

OER and KER projection (%) n.a 20.00 5.00

Total production 378,163.00 75,632.60 18,908.15

Total non-certified production 50,390.00 10,078.00 2,519.50

Total certified pro-duction (RSPO Scheme)

From Estate 327,773.00

65,554.60 16,388.65

From Independent Smallholder (ISH)

-

From Scheme or Assosiate SH/Outgrower

-

Note:

*) : There is no volume extention

**) : PL : Previous License & CL : Current License

***) : It is sold certified volume by physically only.

2.4 Area of Plantation (Total, Planted and Mature)

Table 4: Oil Palm Planted Area Summary, FFB Production and Average yield/ha for PT Barumun Agro Sentosa

Period July 2019 to June 2020

Estate Name Total

Area (ha)

Oil Palm

Planted

area

(ha)

Mature

(Production)

area (ha)

Immature

(Non-

production)

area (ha)

FFB

Production*

(tonnes)

Average

yield/ ha

Aek Sigala-gala 4,593.50 4,158.50 4,158.50 0.00 85,263.81 20.50

Aek Kulim 3,038.50 2,983.50 2,983.50 0.00 73,487.44 24.63

Aek Barumun 4,687.00 4,662.00 4,662.00 0.00 111,470.30 23.91

TOTAL 12,319.00 11,804.00 11,804.00 0.00 270,221.55 23.01




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Estate Name Total

Area (ha)

Oil Palm

Planted

area

(ha)

Mature

(Production)

area (ha)

Immature

(Non-

production)

area (ha)

FFB

Production*

(tonnes)

Average

yield/ ha

Aek Sigala-gala 4,642.00 4,207.00 4,207.00 0.00 97,878.00 23.27

Aek Kulim 4,466.20 4,411.20 4,411.20 0.00 110,738.00 25.10

Aek Barumun 4,687.00 4,662.00 4,662.00 0.00 119,157.00 25.56

TOTAL 13,795.20 13,280.20 13,280.20 0.00 327,773.00 24.64

2.5 Dates of Plantings and Replanting Cycles

The company follows a replanting cycle of 25 years. Information on the dates of plantings are as per the table below:

Table 5: Age and year of plantings of company estate supplying to Aek Sigalagala POM


YoP Oil palm planted area at each estate(ha)

TOTAL Aek Sigalagala Aek Kulim Aek Barumun

Mature

1988 0.00 231.00 0.00 231.00

1989 0.00 1,372.50 0.00 1,372.50

1991 1,244.00 421.50 819.00 2,484.50

1992 1,626.00 512.00 894.00 3,032.00

1993 366.00 157.00 1,451.00 1,974.00

1994 310.50 75.00 559.00 944.50

1995 178.00 0.50 0.00 178.50

1996 43.00 0.00 710.00 753.00

1997 0.00 0.00 0.00 0.00

1998 0.00 64.00 0.00 64.00

2002 217.00 73.00 229.00 519.00

2005 51.00 77.00 0.00 128.00

2007 123.00 0.00 0.00 123.00

Sub Total 4,158.50 2,983.50 4,662.00 11,804.00

Immature

(none) 0.00 0.00 0.00 0.00

Sub Total 0.00 0.00 0.00 0.00

TOTAL 4,158.50 2,983.50 4,662.00 11,804.00




Mature

1988 0.00 231.00 0.00 231.00

1989 0.00 1,429.00 0.00 1,429.00

1991 1,244.00 501.00 819.00 2,564.00

1992 1,626.00 588.00 894.00 3,108.00

1993 366.00 278.00 1,451.00 2,095.00

1994 311.00 148.00 570.00 1,029.00

1995 178.00 134.20 0.00 312.20

1996 43.00 76.00 710.00 829.00

1997 0.00 90.00 0.00 90.00




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1998 0.00 180.00 0.00 180.00

2002 217.00 343.00 218.00 778.00

2005 99.00 413.00 0.00 512.00

2007 123.00 - 0.00 123.00

Sub Total 4,207.00 4,411.20 4,662.00 13,280.20

Immature

(none) 0.00 0.00 0.00 0.00

Sub Total 0.00 0.00 0.00 0.00

TOTAL 4,207.00 4,411.20 4,662.00 13,280.20

Note:

Table 6: Land use data for PT Barumun Agro Sentosa – Aek Sigalagala POM


Estate Name Total

area (ha)

Oil Palm Planted

Area (ha)

Other

commo-

doties

HCV/

Potential

HCV

areas1) (ha)

Land used for other purposes (ha)

Local

Government

office

Nursery Infrastucture2) Other Land3)

Aek Sigalagala 4,642.00 4,207.00 0.00

62.42

0.00 0.00 54.00 381.00

Aek Kulim 4,490.00 4,435.00 0.00 0.00 0.00 32.00 23.00

Aek Barumun 4,687.00 4,662.00 0.00 0.00 0.00 25.00 0.00

TOTAL 13,819.00 13,304.00 0.00 62.42 0.00 0.00 111.00 404.00

Note: 1) HCV areas including of planted areas.

2) Infrastucture areas consist of:

Description Aek Sigalagala Aek Kulim Aek Barumun TOTAL

Emplasement : 40.00 30.50 25.00 95.50

Cemetery : - 1.50 - 1.50

Mill : 14.00 - - 14.00

TOTAL 54.00 32.00 25.00 111.00

3) Other land areas consist of:


Swamp Land : 367.00 23.00 - 390.00

Various Plant : 14.00 - - 14.00

Occupation : - - - -

TOTAL 381.00 23.00 - 404.00


Estate Name Total

area (ha)

Oil Palm Planted

Area (ha)

Other

commo-

doties

HCV/

Potential

HCV

areas1) (ha)

Land used for other purposes (ha)

Local

Government

office

Nursery Infrastucture2) Other Land3)

Aek Sigalagala 4,642.00 4,207.00 0.00

62.42

0.00 0.00 54.00 381.00

Aek Kulim 4,466.20 4,411.20 0.00 0.00 0.00 32.00 23.00

Aek Barumun 4,687.00 4,662.00 0.00 0.00 0.00 25.00 0.00

TOTAL 13,795.20 13,280.20 0.00 62.42 0.00 0.00 111.00 404.00




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Note: 1) HCV areas including of planted areas.

2) Infrastucture areas consist of:


Emplasement : 40.00 30.50 25.00 95.50

Cemetery : - 1.50 - 1.50

Mill : 14.00 - - 14.00

TOTAL 54.00 32.00 25.00 111.00

3) Other land areas consist of:


Swamp Land : 367.00 23.00 - 390.00

Various Plant : 14.00 - - 14.00

Occupation : - - - -

TOTAL 381.00 23.00 - 404.00

Table 7 : Planned and actual oil palm replanting activities for PT Barumun Agro Sentosa

Estate

Total of

Replanting

Plan (Ha)

Replanting Planning for each year (Ha)

2020 2021 2022 2023 2024

Aek Sigalagala 2,870.00 - - 1,244.00 898.00 728.00

Aek Kulim 2,749.00 - 1,660.00 501.00 588.00 -

Aek Barumun 2,065.00 - - 255.00 525.00 1,285.00

TOTAL 7,684.00 - 1,660.00 2,000.00 2,011.00 2,013.00

2.6 Volume of CPO and PK recommended for Certification

The approximate tonnages certified, based projection of production for company owned estates only [period of Ju-

ly 2020 to June 2021] are as follows:

FFB : 327,773.00 MT

Crude Palm Oil (CPO) : 65,554.60 MT

Palm Kernel (PK) : 16,388.65 MT

OER : 20.00 %

KER : 5.00 %




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2.7 Data & Information relate of employment & social issues

Table 8 : Distribution of manpower (person) each estates/divisions & POM period of June 2020

Month & Es-tate/Division/POM

MRP* DRP* PKWT/Contract* PHL/Casual* Contractor* Total (person) M** F** M** F** M** F** M** F** M** F**

Aek Sigalagala Estate 65 47 324 25 - - 87 121 - - 669

Aek Kulim Estate 60 27 314 28 - - 97 206 - - 732

Aek Barumun Estate 45 12 287 22 - - 110 188 - - 664

Aek Sigalagala POM 65 6 65 - - - - - - - 136

TOTAL 235 92 990 75 - - 294 515 - - 2,201

Note: *) MRP : Monthly Rated Permanent DRP : Daily Rated Permanent PKWT/Contract : Contract worker or temporary worker or PKWT (Perjanjian Kerja Waktu Tertentu = Certain Period Employement

Contract) PHL/Casual : Casual worker or daily worker or PHL (Pekerja Harian Lepas = daily/casual worker) Contractor : Contractor/outsourcing worker (from employment outsourcing or employment service provider/agency or worker

from other/thrid parties who do work that belong to the employer **) M : Male F : Female

Table 9 : Detail of manpower per activities each estate/division period of July 2019 to June 2020

Estate/Division/POM Month

Jul Aug Sep Oct Nov Des Jan Feb Mar Apr May Jun

Aek Sigalagala Estate

Harvesting 244 238 252 265 262 251 247 238 241 236 236 233

Upkeep 222 255 270 298 282 271 272 278 268 250 243 237

Office 38 37 38 38 40 40 37 39 39 39 38 39

Other 157 159 159 158 154 158 160 160 161 161 160 160

Sub Total 661 689 719 759 738 720 716 715 709 686 677 669

Aek Kulim Estate

Harvesting 249 249 245 252 254 245 240 236 232 231 231 230

Upkeep 291 289 289 297 294 288 278 279 278 278 279 313

Office 46 47 47 47 47 47 47 47 47 47 47 46

Other 145 144 142 142 141 141 142 144 142 142 142 143

Sub Total 731 729 723 738 736 721 707 706 699 698 699 732

Aek Barumun Estate

Harvesting 245 243 251 245 245 238 234 236 234 236 239 239

Upkeep 297 331 344 346 338 331 325 325 322 315 307 305

Office 35 35 35 35 35 35 35 34 35 35 35 35

Other 87 87 86 86 85 85 83 84 84 84 85 85

Sub Total 664 696 716 712 703 689 677 679 675 670 666 664

Aek Sigalagala POM

Processing 55 55 55 55 55 55 48 48 48 48 48 47

Grading 17 17 17 17 17 17 13 13 13 13 13 13

Laboartorium 7 7 7 7 7 7 8 8 8 8 8 8

Security 14 14 14 14 14 13 13 13 13 13 13 13

Workshop 35 35 35 35 35 35 36 36 36 36 36 36

Office 13 13 13 13 12 13 12 13 13 13 13 13

Other 8 8 8 8 8 8 6 6 6 6 6 6

Sub Total 149 149 149 149 148 148 136 137 137 137 137 136

GRAND TOTAL 2,205 2,263 2,307 2,358 2,325 2,278 2,236 2,237 2,220 2,191 2,179 2,201




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Table 10.a : Detail of manpower per activities period of 2019 in Estate

No. Company/other party name Sexual

Total Scope of activities M F

AEK SIGALAGALA ESTATE

1. PT. IVAN MOTOR SEJAHTERA 43 - 43 FFB transport

2. SUYANTO MOTOR 12 - 12

Sub Total 55 - 55

AEK KULIM ESTATE



Sub Total 16 55 - 55

AEK BARUMUN ESTATE



Sub Total 69 - 69

Table 10.b : Detail of contractor activity period of 2019 in Aek Sigalagala POM

No. Company/other party name Sexual

Total Scope of activities M F

AEK SIGALAGALA POM

1. - - - - -

Sub Total - - -

2.8 Organisational Information / Contact Person

Contacts details of the company are as follows:

Company Name: PT Barumun Agro Sentosa – Aek Sigalagala POM

RSPO Membership No.: 1-0059-08-000-00 under PT Barumun Agro Sentosa since August 29, 2008

Address: Regional Office Jl. DC Mahakam Blok C No. 14, Padang Golf, Polonia, Medan - 20157, INDONESIA

Site Location: Aek Sigala-gala Village, Simangambat Sub-district, Padang Lawas Utara Dis-trict, North Sumtra Province, INDONESIA

Contact Person: Mr. Idris Tan

Telephone: Telp: +62-61 7882311 Fax: +62-61 7882177

Email: [email protected]

mailto:[email protected]




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3.0 ASSESSMENT PROCESS

3.1 Qualifications of Lead Assessor and Assessment Team

Name Position Qualifications / Experience

Ibnu Satria Prabudi Lead Auditor Education: Bachelor of Agriculture, Faculty of Agriculture, INSTIPER, Yog-yakarta.

Training attended: RSPO Lead Auditor by the Indonesian Palm Oil Commission (2010), ISPO auditor training by the National Standardization Agency (2011), ISO 9001: 2015 IRCA by PT TUV Rheinland In-donesia (2018), ISO 14001: 2004 by PT Bumi Hijau Cemerlang, Awarness HACCP certification by PT Mutuagung Lestari, Awarness SQMS Mc Donald by PT Mutuagung Lestari, Green House Gass In House Training by the ISPO Commission, OHS ExpertTraining by PT Safindo Raya (2016) and involved in ISPO standard testing activities (2011) and has participated in several activities audit related to the sustainable oil palm plantation certi-fication system as an auditor and or Lead Auditor.

Working experience: Auditor in PT Mutu Agung Lestari (2010-2015), Internal Auditor in PT Tasik Raja – Anglo Eastern Plantation Group (2015-2017) and Auditor in PT TUV Rheinland Indonesia (2017-present).

Budi Setiawan Auditor Education: Bachelors Degree in Forestry - Bogor Agriculture University, In-donesia, (2004 to 2008).

Trainings attended: Indonesian Sustainable Palm Oil (ISPO) Lead Auditor Course by Komisi ISPO, Quality Management System (QMS) Auditor/Lead Auditor by IRCA (ISO 9001:2008), Environmental Management Systems Auditor/Lead Auditor Conversion Training by IRCA (ISO 14001-2004), Calculation of Green House Gas at Palm Oil Plantation by Komisi ISPO, SVLK Auditor Training by Ministry of Forestry, CoC Auditor by LEI, PUB and Café training by ministry of tourism, HCV Training, RSPO P&C and SCCS Training (2016).

Work experience: Staff RSPO in PT MAS (2008-2009), Staff Planning & Analysis in PT Bakti Sukses Mandiri (2009-2010), PT Mutu Hijau Indonesia, Jakarta as Technical Manager (2015-2016) and HR and finance manager (2014-2015), Auditor in PT Mutu Hijau Indonesia (2010-2016), and Auditor in PT TUV Rheinland Indonesia (2016-present).

Efrida Auditor Education: Bachelor of Agriculture (social and economic of agriculture) – Bogor Agriculture University.

Trainings attended: RSPO Lead Auditor Training, ISO 9001:2008 Lead Auditor train-ing (IRCA), ISPO Lead Auditor Training (ISPO Commission), 5S




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Name Position Qualifications / Experience

and Social Workshop, Kuala Lumpur.

Working experience: Community Development Staff at Wilmar International Planta-tion-Central Kalimantan Project (2010-2012) and Technical Sup-port Department Sustainability Assurance in PT TUV Rheinland Indonesia (2012-2016), Auditor ISPO (2016-current) and Auditor RSPO (2016-current).

Wahyu Auditor Education: Bachelor degree of Mechanical Engineering - University of Indo-nesia and Magister of Manufacturing - Pancasila University.

Trainings attended: ISO 9001 and ISO 14001 IRCA Lead Auditor Training, Training of ISO 28000, TOT of Maritime Security, ISO 22000, and OHSAS 18001, SVLK Lead Auditor Training, COC – LEI Lead Auditor Training, VLO & RIL Training, ISPO Lead Auditor Training, and RSPO Lead Auditor Training.

Working experience: Arround 8 (eight) years as technicianand engineer at manufactur-ing industries, 3 (three) years as QHSE Head at independent sur-veyor and inspection services company, 3 (three) years as QHSE Consulant, and 6 (six) years as auditor of ISO 9001, ISO 14001, OHSAS 18001, SVLK, COC – LEI, SVLK for Industry, ISPO and RSPO.

3.2. Assessment Agenda

Date Location / Main

sites Main activities

Remote Audit (Not Applicable)

Verifiation of document :

Verification of field :

Interview/stakeholder consultation :

On-site Audit

Monday, July 13, 2020

-

Travelling to site

Tuesday, July 14, 2020

Aek Sigalagala POM Meeting

Room

Local Office and PT BAS Meeting

Room

Opening Meeting Team auditor introduction Company presentation

Public Consultation (Local Government and related stake-holders)

Verification of previous NC

Verification document of P&C RSPO for Mill and Estate

Wednesday, July 15, 2020

Aek Sigalagala Estate

Field observation at Aek Sigalagala Estate related to: Harvesting (Block I-16 and I-17) Spraying (Block J-16) Employee Housing




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Date Location / Main

sites Main activities

Domestic Waste Management HCV Management (Block I-17) Chemical Room Solar Tank Emergency Respons Tools Boundaries

Aek Kulim Estate Field observation at Aek Sigalagala Estate related to: Harvesting (Block D-23) Spraying (Block F-20) Employee Housing Domestic Waste Management HCV Management (Block F-22) Chemical Room Solar Tank Emergency Respons Tools Boundaries

Aek Barumun Estate

Field observation at Aek Sigalagala Estate related to: Harvesting (Block A-2, A-3 and A-4) Spraying (Block B-12) Employee Housing Domestic Waste Management HCV Management (Block G-15 and G-16) Chemical Room Solar Tank Emergency Respons Tools Boundaries

Aek Sigalagala POM

Field Observation related to: Weight Bridge and Loading Ramp Sterilizer Station Boiler Station Storage Tank. Employee Housing of POM Domestic waste management Hazardous and Toxic Waste Storage Chemical Storage Fire Facility Interview with Boiler Operator, Sterilizer Operator,

Grading worker, Weight bridge operator Solar Tank

WWTP

Thursday, July 16, 2020

PT BAS Meeting Room

Verification document of P&C RSPO for Mill and Estate

Preparing for Closing Meeting

Closing Meeting Travelling to Medan (stay overnight)

Friday, July 17, 2020

- Travelling to Jakarta




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Agenda for Verification of Closure of Major Non-conformities

Date Location / Main sites Auditor Main activities

3.3 Assessment Methodology The Re-certification Assessment (RA) was conducted betwen July 13 – 16, 2020 as per the assessment pro-gram above. The assessment was carried out in accordance with PT TUV Rheinland Indonesia’s RSPO audit procedure as well as the RSPO Certification Systems document. During assessment, the qualified TUV Rhein-land assessors used the RSPO standard as endorsed for the country in which the assessment took place and recorded their findings.

If non-conformity not available so lead auditor submitting final audit report to technical reviewer and certifier will make certificate decision after get positive result from technical reviewer. The auditee proposed the correction and corrective action for all identified non conformities raised to the certification body 30 days after the closing meeting.

If critical non-compliance raised during surveillance and re-certification audits shall be closed successfully with-in 90 days (include of identified the cause of identified non-conformities, proper correction and corrective action, provide and demonstrate the evidence to closure the non-conformities) after closing meeting/the last day of the audit or the certificate will be suspended and subsequently withdrawn if the major non-compliance are not ad-dressed within an agreed timeframe as set between CB and certificate holder, not longer than six months from the last day of the audit. Verification of closure of critical non-complaince and verification propose conducting within 90 days after closing meeting/the last day of the audit (if necessary). The RSPO certificate will automati-cally lead to immediate suspension if:

Recurring critical non-compliance on the same indicator in successive surveillance audits. This suspension shall be lifted when the non-compliances are successfully addressed.

There are five or more critical non-compliance within one principle being observed in an ASA or in a recerti-fication audit. This suspension shall be lifted when the non-compliances are successfully addressed.

Non critical non-compliances will be raised to critical if they are not addressed by the time of the following sur-veillance audit. Whereas, recurring non-critical non-compliance on the same indicator in successive surveil-lance audits will automatically be raised to critical. Implementation of corrective actions for non critical non-compliances will be verified during the next surveillance audit.

Coronavirus outbreak Based on circular letter date on 24 March 2020 from RSPO secretariat that surveillance / recertification audit can be partially performed through a combination of remote and on-site audits as follow:

The recertification audit was conducted through remote audit (Not Applicable).

The assessment was carried out in accordance with PT TUV Rheinland Indonesia’s RSPO audit procedure as well as the RSPO Certification Systems document and circular letter date on 24 March 2020 from RSPO secretariat. During assessment, the qualified TUV Rheinland assessors used the RSPO standard as en-dorsed for the country in which the assessment took place and recorded their findings.

Based on information in section 1 that total of estates are 3 (three). The sampling design shall include eve-ry mill and minimum sample of 3 (three) estates ((0.8√ [3] x [1]. Risk level is [1] because there is no NCR for the previous assessment.

During remote audit, reviewing compliance against the RSPO P&C requirements as attached in annex 1 of circular letter date on 24 March 2020, through the review of appropriate documented evidence and if need-

ed the interview of audit team to interviewer through video conference (Not Applicable).




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During remote audit, if non-conformity not available so lead auditor submitting remote audit report to tech-nical reviewer and technical review will issued review result immediately. If any non-critical NC raised in remote audit so evidence of correction will be verifying next ASA but the plan of correction and corrective action shll be reviewed and accepted by auditor team. Whereas, if any critical NC raised in remote audit so : o Shall be closed within 90 days after closing meeting for carry out remote audit in minimum of 10 days

before end date of license (for ASA) or end date validity of certificate (for recertification audit) or o Shall be closed < 90 days after closing meeting or 10 days before end date of license for extension of

first period of 3 months (for ASA) which remote audit will be carried out after end date of license.

o For those actions need to be verified on-site, can combine together with later on-site audit (Not Appli-

cable).

License can be extended for an additional period of 3 months (for extension of first period of 3 months) if critical NC shall be closed and the remote audit report shall be finalized and review result has issued.

During on-site audit, 3 (three) estates i.e Aek Sigalagala, Aek Kulim and Aek Barumun Estate and Aek Sigalagala mill were visited and the assessment team carried out field and document assessments of com-pliance to all the relevant remaining RSPO principles and criteria requirements. Common systems were identified and specific evidence was recorded for individual estates. Interviews were conducted at all es-tates and the mill.

On-site audit shall be performed before the end of the 6 months extension or whenever the travel re-strictions are lifted by the relevant authority. However, for exceptional cases where on-site audit is not pos-sible during this 6 month extension, the CB is required to inform the RSPO secretariat for further decision.

Once the on-site audit has been successfully completed, the audit team shall update its initial remote audit report to include the on-site process and ensure that the final report fully complies with all RSPO P&C certi-fication system requirement including the peer review of the recertification audit report.

4.0 Stakeholder Consultation and Stakeholders Contacted

Stakeholder consultation took place in the form of interviews. Internview with stakeholders were held to seek their views on the performance of the company with respect to the sustainability practices outlined in the RSPO Principles & Criteria, and to comment on aspects where improvements could be made. Internvie with local communities were held at their respective premises within and near the company’s area. In all the interviews and meeting, the objectives of the RSPO and the purpose of the assessment was clarified at the outset fol-lowed by an evaluation of the relationship between the stakeholders and the company before discussion pro-ceeded to obtain the stakeholders feedback on the company’s compliance to different aspects of the RSPO Principles & Criteria. Although several stakeholders were not familiar with RSPO but they agreed with its objec-tive and expressed their willingness to collaborate in the promotion of sustainable palm oil in North Sumatera province. In all interviews and meeting, the assessment team did not restrict discussion of both the positive and negative aspects of operations conducted by Estates and Mill. The list of stakeholders that attended the stakeholder consultation meeting and stakeholders interviewed during the assessment is included as (Appen-dix 4).




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5.0 Compliance to Other RSPO Requirement

5.1. Time Bound Plan for Other Management Units

The time frame laid out below is considered to be both challenging and realistic. This time bound plan is the re-vised version due to several units has not gone through any operational activity on the ground, moreover there was also internal conflict occurred within the associated smallholders’ organization. The audit team is satisfied that the company conforms to the RSPO requirements for partial certification as laid out in Clause 4.5 of the RSPO Certification Systems document.

Table 8: Time Bound Plan of PT Pacific Agro Sentosa

Name of Holding Location Time bound plan

for certification Status

PT. Rimba Mujur Mahkota (PT.RMM). RSPO Member :No: 1-0124-12-000-00

Sikara-kara Village, Natal Sub District, Mandailing Natal District, North Su-matra - INDONESIA

November, 2014 Certified

PT. Dinamika Inti Sentosa (PT.DIS)

Sundutan Tigo Village, Natal Sub District, Man-dailing Natal District, North Sumatra - INDONESIA

2021 Not Certified

PT. Cipta Usaha Sejati (PT.CUS) RSPO Member :No: 1-0078-09-000-00

Matan Jaya Village Kec. Simpang Hilir, North Kayong District, West Ka-limantan - INDONESIA

2021 Not Certified

PT. Jalin Vaneo (PT.JV) - non member

Batu Barat Village, Sim-pang Hilir Sub District, North Kayong District, West Kalimantan - INDONESIA

2021 Not Certified

PT. Mitra Aneka Rezeki - Kubu Raya (PT. MAR) - non member

Arus Deras Vil-lage, ,Teluk Pakedai Sub District, Kubu Raya Dis-trict, West Kalimantan-INDONESIA

2021 Not Certified

PT. Mitra Aneka Rezeki –Banyuasin (PT. MAR) - non member

Meranti Village, Suak Tapeh Sub District, Banyuasin District, South Sumatera- INDONESIA

2021 Not Certified

5.2. Compliance to Rules for Partial Certification

Compliance of the uncertified management units of PT Pacific Agro Sentosa against the rules for partial certifi-cation according to RSPO Certification System clause 4.5 was assessed by desk study as well as web check on relevant complaints; verification to company’s parent company, a positive assurance statement based upon company’s self assessment completed with sufficient evidence against each requirement; consultation with tar-geted stakeholders including consultation with the relevant NGO’s, and or further stakeholder consultation and or field inspection considering the risk assessment result of any non compliance with the requirements. A summary of findings is as stated below.

Partial Certification Requirements Audit Findings

4.5.2 The parent organization or one of its majority owned and / or managed subsidiaries is a member of RSPO.

PT Barumun Agro Sentosa (PT BAS) is subsidiary of Pacific Agro Sentosa. PT BAS has RSPO member with

membership number 1-0059-08-000-00 since August 29, 2008




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4.5.3 A challenging time-bound plan for certifying all its relevant entities is submitted to the Certifica-tion Body (CB) during the first certification audit. The time-bound plan should contain a list of sub-sidiaries, estates and mills.

Any revision to the time-bound plan or to the cir-cumstances of the company shall cause the plan to be reviewed. for whether it is still appropriate, such that changes to the time-bound plan are permitted only where the organisation can demonstrate that they are justified

See table above, some changes on company’s time bound plan due to several reason explained above.

4.5.4 (a). No replacement of primary forest or any area identified as containing High Conservation Values (HCVs) or required to maintain or enhance HCVs in accordance with RSPO criterion 7.3 (it

has changed be Criterion 7.12 in P&C 2018). Any new plantings since January 1st 2010 must comply with the RSPO New Plantings Procedure*. For each new planting development, compliance with the NPP shall be verified by an RSPO ac-credited CB.

*Any new plantings since this period must be re-ported to TUV Rheinland to conduct verification of compliance to the New Planting Procedure

There are some newly developed plantation areas un-der PT Cipta Usaha Sejati (CUS) and PT Jalin Vaneo (JV), West Kalimantan province Indonesia. Company conduct HCV assessment in year 2012 and conduct land use changes analisis (LUCA). According to infor-mation stated on HCV among the 13 HCVs and asso-ciated sub-values assessed, 11 were deemed present at JV and 10 at CUS. Further information stated on HCV document, no areas in PT CUS and PT JV are merged into a single layer and overlaid on the license boundary. The total area of the recommended HCVMA inside the license boundary is c. 20,280 ha. The total non-HCVMA area within the license area is c. 24,830 ha. The area of non-HCVMA that overlaps with areas planned by the company for future oil palm development is estimated to cover c. 4120 ha. Such areas would be considered available for new development, subject to release by local commu-nities through a fair and proper Free Prior and Informed Consent (FPIC) procedure for land release, and full payment of compensation. From LUCA document the indicating areas of clear-ance since 2005 is 22,042.38 ha both in PT CUS and PT JV with various vegetation coefficients. Currently both companies are under processing on RSPO Re-mediation and Compensation Porcedure.

Also PT. DIS, PT. MAR Kubu Raya and PT. MAR Banyuasin there is no official document of HCV as-sessment nor NPP approval from RSPO.

4.5.4 (b). Land conflicts, if any, are being resolved through a mutually agreed process, such as the RSPO Complaints System or Dispute Settlement Facility, in accordance with RSPO criteria 2.2, 6.4, 7.5 and 7.6 (it has changed be Criterion 4.8, 4.7

and 4.5 in P&C 2018).

There are identified land dispute in several company’s subsidiaries i.e.:

Land dispute in PT Cipta Usaha Sejati with villager from Lumbuk Batu village, Kayong Utara District, for total area 1735 ha, under resolution involving Integrated Team Land Settlement, National Land Agency.

Dispute regarding smallholder scheme develop-ment in PT Rimba Mujur Mahkota and PT Dina-mika Inti Sentosa with community from Bintuas vil-lage 740 ha and Buburan Village 596 ha, Mandail-ing Natal District. There are some agreements




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signed however some community still not satisfied with the agreement result.

Claime from “Gerakan Pemuda Untuk Keadilan Rakyat (GPUK)” regarding land occupied by PT Barumun Agro Sentosa 235.50 Ha. And Claim from Haji Soleh Hasibuan. Has been solved and clarified by management PT BAS through letter on February 24, 2015.

4.5.4 (c). Labour disputes, if any, are being re-solved through a mutually agreed process, in ac-cordance with RSPO criterion 6.3. (it has changed

be Criterion 4.2 in P&C 2018)

There are some labour dispute in several companys subsidiaries, i.e.:

Complaint regarding “Eid Mubarak Allowance” in PT CUS in June 2016. The casual wokers reported to Man Power Officer Kayong Utara District.

Labour dispute in PT RMM regarding minimum wages in year 2015 has been solved.

4.5.4 (d) Legal non-compliance, if any, are being resolved in accordance with the legal requirements, with reference to RSPO criteria 2.1.(it has changed

be Criterion 4.2 in P&C 2018)

Some of PT PAS’s other management units have not complied with certain legal requirements (HGU), for ex-ample in PT DIS and PT. BAS. Those has been identi-fied on audit report as well as legal compliance in PT BAS has been recorded on the relevant audit report.

5.3. Compliance to other RSPO Procedure

RSPO NPP N/A

RSPO Compensation and Remediation pro-cedure

N/A

Areal Subject to sanction N/A

5.4. Compliance to RSPO Guidance on GHG calculation year 2019

During the audit, the audit team verify and confirm that:

The RSPO PalmGHG Calculator used Palm GHG Calculator V4

Accurate data has been put into the RSPO PalmGHG Calculator

Yes

Net GHG Emission Figure (tCO2e/tCPO) 1.00

Summary of Net GHG Emission

A. Emissions Per Product tCO2e/tProduct

CPO 1.00

PK 1.00

B. Extraction %

OER 23.11

KER 4.18




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C. Production t/yr

FFB processed 167,530.37

CPO Produced 38,716.27

PK Produced 7,002.77

D. Land Use Ha

Oil Palm Planted area 3,781.49

Oil Palm Planted on peat -

Conservation (Forested) -

Conservation (non-forested) 7.91

Total 3,781.49

Summary of Field Emissions and Sinks

Emission

Own Crop Group Total

tCO2e tCO2e/ tFFB

tCO2e tCO2e/t

FFB tCO2e

tCO2e/t FFB

Land Conversion 39090.66 0.39 92247.34 0.58 131338.00 0.97

CO2 Emission from Fertilizer 3788.01 0.04 25889.58 0.16 29677.59 0.20

N2O Emissions from peat 0.00 0.00 0.00 0.00 0.00 0.00

N2O Emissions from Fertilizer 3216.21 0.03 17541.20 0.11 20757.41 0.14

Fuel Consumption 70.70 0.00 628.44 0.00 699.13 0.00

Peat Oxidation 0.00 0.00 0.00 0.00 0.00 0.00

Sinks

Crop Sequestration -37052.76 -0.37 -87399.30 -0.55 -124452.06 -0.92

Conservation Sequestration 0.00 0.00 -21.03 -0.00 -21.03 -21.03

Total 9112.82 0.09 48886.22 0.31 57999.03 0.33

Summary of Mill Emissions and Credit

Emissions tCO2e tCO2e/tFFB

POME 13968.05 0.05

Fuel Consumption 331.33 0.00

Grid Electricity Utilization 2.83 0.00

Credit

Export of Grid Electricity 0.00 0.00

Sales of PKS 0.00 0.00

Sales of FFB 0.00 0.00

Total 14302.20 0.06

Palm Oil Mill Effluent (POME) Treatment

Divert to compost 0 %

Divert to anaeobic digestion 100 %




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POME Diverted to Anaerobic Digestion:

Divert to Anaerobic Pond 100 %

Divert to methane capture (flaring) 0 %

Divert to Methane capture (Electricity Generation) 0 %

5.5 Plan for certification of associated smallholders

As seen from data in Table 3, the mill no receives supply of FFB from 3rd parties. Hence there is no plan for certification of associated smallholders.




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6.0 ASSESSMENT FINDINGS

6.1 Summary of Findings The following is an audit findings made for the indicator listed in the RSPO Principles & Criteria 2018 [INA-NI 2020]

CR CHECKLIST AND RESULTS OF VERIFICATION STATUS

Principle 1: Behave Ethically and Transparently

1.1 The unit of certification provides adequate information to relevant stakeholders on envi-

ronmental, social and legal issues relevant to RSPO Criteria, in appropriate languanges and

forms to allow for efffective participation in decision-making.

1.1.1 (C) Management documents that are specified in the RSPO P&C are made publicly available

Findings: PT BAS showa their commitment in providing information to stakeholders. In SOP of Internal and External Communication No. BAS/SOP-MR/006 Rev 04 dated 30 April 2018 described the type of documents as publicly document that may be accessible to the public are land titles/user rights, OHS plans, plans and impact assessments relating to environmental and social impacts (environmental and SIA document), HCV documentation, pollution prevention and reduction plans, details of complaints and grievances, land compensation and negotiation proce-dures, continual improvement plans, public summary of certification assessment report, quality-environmental-health & safety policy, CSR activity report, agree-ment between company with workers, communication procedure and human rights policy.

Yes No N.A

NCR No :

1.1.2 Information is provided in appropriate languages and accessible to relevant stakeholders

Findings:

All communication with stakeholders use Indonesian language as seen on all records of socialization and interview with stakeholders. Based on interview with workers and village officials, they aware about the datas publicly available and how to access the documents wether in estate office, district office or head office. Information given by socialization formally or non-formal by morning briefing by foremen to workers and non-formal meetings. Company also send some monitor-ing reports to Government Agencies as regulation compliance. There are records of socialization conducted as follow:

Socialization evidence of sustainability policy focused on HCV, Carbon Stock, GHG and no fire use on 24 June 2020 given to 262 workers of Aek Sigala-Gala Estate, and on 23 June 2020 given to 185 workers of Aek Kulim Estate and to 242 workers of Aek Barumun Estate.

Socialization about Human Rights, Child Protection, Sexual Harassment and Reproduction Rights Protection dated 23 April 2020 to 267 workers of Aek Sigala-Gala Estate

Socialization about Child Protection, Sexual Harassment and Reproduc-tion Rights Protection dated 13 May 2020 to 250 workers of Aek Ba-rumun Estate

Socialization of SOP Communication Internal and External for Communi-ties of Ujung Gading Julu Village on 12 July 2019 attended by 15 villag-ers

Socialization of SOP Communication Internal and External for Communi-ties of Jambu Tonang Village and Pasir Lancat Village on 12 June 2020 attended by 12 villagers

Reporting to related agencies are as follow:

Yes No N.A

NCR No :




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Manpower report to Manpower Ministry online, with registration number 20157.01262.20190207.0-001 dated 27 July 2019 and valid until 27 July 2020.

Fire monitoring and control report period Semester II 2019 to Regional Disaster Management Agency of Padang Lawas Utara District, Agricul-ture Agency Plantation Division of Padang Lawas Utara District, Regent of Padang Lawas Utara, Governor of North Sumatera Province, Forest Agency of North Sumatera Province, and Forest Agency of Labuhanbatu District, on 15 January 2020.

Plantation Development Report period Semester II 2019 to Investment Agency of Padang Lawas Utara Agency, Regent of Padang Lawas Utara and Agriculture Agency and Plantation Agency of Padang Lawas Utara District on 1 February 2020

OHS Report Period Quarter I 2020 to Manpower Agency of North Su-matera Province on 17 April 2020

Hazardous Waste Report and 2nd Manifest Period Quarter I 2020 to Envi-ronmental Agency of North Sumatera Province and Environmental Agency of Padang Lawas Utara District on 8 April 2020

Environment Monitoring and Management Plan Report period Semester II 2019 to Environmental Agency of North Sumatera Province, Manpow-er Agency of North Sumatera Province on 27 January 2020 and to Minis-try of Environment and Forestry on 14 January 2020.

1.1.3 (C) Records of requests for information and responses are maintained

Findings:

Records of requests for information and responses are maintained in company. All incoming letters and information request by stakeholders is noted in Log Book of Stakeholder Communication, for example Letter No. 023/TRC-LSM/VII/09 dat-ed July 05, 2019 from Raden Centre regarding donation request for operational office construction, respon from management with letter No.231/EM-BAS/VII/2019, dated July 20, 2019 to Raden Centre Official that management agreed to donate the office construction.

Yes No N.A

NCR No :

1.1.4 (C) Consultation and communication procedures are documented, disclosed, implemented,

made available, and explained to all relevant stakeholders by a nominated management of-

ficial

Findings:

Company has procedure or SOP of Internal and External Communication No. BAS/SOP-MR/006 Rev 04 dated 30 April 2018. The procedure covers the scope, purpose of the procedure, internal and external communication method, docu-mentation and follow-up action. In the procedure, it is also mentioned the time frame to response is 1 month or more depend on the data requested. The Pro-cedure has been arranged and communicated to stakeholder through stakeholder meeting. For example:

Socialization of SOP Communication Internal and External for Communi-ties of Ujung Gading Julu Village on 12 July 2019 attended by 15 villag-ers

Socialization of SOP Communication Internal and External for Communi-ties of Jambu Tonang Village and Pasir Lancat Village on 12 June 2020 attended by 12 villagers

Socialization of communication and complaint mechanism for 178 work-ers in Aek Kulim Estate on 16 June 2020

Company has special officer who is responsible to handle social issues, he is Mr.

Yes No N.A

NCR No :




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Indra Purnama (No. 091/ST/GM-FMPI/VI/2009). The task is to do communication and consultation with external parties in terms of legal and social so that the company’s operations run well

1.1.5 There is a current list of contact and details of stakeholders and their nominated represent-

atives

Findings:

Stakeholder list of PT Barumun Agro Sentosa updated on 10 July 2020 consist of government institution, head of villages, villages representatives, customers, con-tractors, suppliers, NGO, workers representatives. The details are name of organ-ization, personnel name, address, and phone number.

Yes No N.A

NCR No :

1.2 The unit of certification commits to ethical conduct in all business operations and transac-

tions

1.2.1 A policy for ethical conduct is in place and implemented in all business operations and

transactions, including recruitment and contracts

Findings:

The company already has a vision, a mission and a commitment signed by the Director of January 1, 2015. In one of the commitments mentioned: "Applying the principles of ethical behaviour appropriate decency and fairness are generally accepted and promote fairness in all transactions and operational busi-ness, extend all forms of corruption, bribery, fraud in the use of funds and re-sources." Additionally there is Business Ethic Policy No. 001/SE/KD-BAS/VIII/2017 dated 28 August 2017. In the policy mentioned that the company respect for fair con-duct of business. The directors, management and all employees emphasize avoid conflicts of interest either directly or indirectly. Not allowed to conduct insider trading / transaction, does not have a personal or family land and choose a supplier who has a family relationship with decision makers, select of customers for commodity-traded companies that have the fami-ly connections with decision makers. Company prohibits all forms of corruption, bribery and fraudulent use of funds and resources. And company, directors, management and all workers conduct business ethics in accordance with appli-cable regulations.

Yes No N.A

NCR No :

1.2.2 A system is in place to monitor compliance and the implementation of the policy and overall

ethical business practice

Findings:

The business ethics or ethical conduct is regularly communicated to all workers and relevant stakeholders, ie. FFB suppliers. Evidence of Socialization of Ethical Conduct dated 10 June 2019 given to 56 workers in Aek Sigala-gala POM, dated 24 April 2020 given to 180 workers in Aek Kulim Estate, dated 28 April 2020 giv-en to 245 workers in Barumun Estate, and dated 11 May 2020 given to 301 work-ers in Aek Sigala-gala Estate. In agreements with FFB suppliers it is mentioned that both parties is prohibited to give or accept rewards, bribe and or fraud and other things that not inappropriate with law. And also the agreement is in accordance with fair conduct of business.

Yes No N.A

NCR No :




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Principle 2 : Operate legally and respect rights - Implement legal requirements as the basic principles of

operation in any jurisdiction

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

regulations

2.1.1 (C) The unit of certification complies with applicable legal requirements

Findings:

The unit certification has a list of legal requirements both for POM and estates, i.e. “Daftar Identifikasi dan Evaluasi Pemenuhan Peraturan dan Perundangan-undangan”. The list updated regularly once every 1 (one) year, and the last udat-ed is March 17, 2020. There are evidences of compliance to applicable legal requirements both of Mill and estate. Some documents and records were reviewed, and field observed during this audit, for example: - Licenses/permits of mill’s machineries and apparatus such as boiler, genset,

sterilizer and etc from authorized agencies - Permit for POME for land application - Permit for temporary hazardous waste store - Records of annual medical surveillance for all workers and specific medical

surveillance for workers who work with pesticide and other relevant workers. - Records of periodic testing and checking of mill’s machineries and apparatus

from authorized agencies. - License of OHS operators of genset, crane, welder, dumptruck and etc. - The unit of certification provided appropriate PPE to workers without charge

and replaced if damaged. - First aid kits are available on-site - Etc.

However, some condition does not comply with regulations such as: a. the unit of certification does not yet have a licensed first aid officer as re-

quired by national regulation i.e. Permenakertrans No Per-15 year 2008 b. PT BAS has not fully implemented the provisions under Permenaker No.

19/2012. For example: The FFB transportation contractor on behalf Suyanto) is not yet a legal entity, proof of work agreement record from related agen-cies has not shown.

This condition was raised as non conformity No: RSPO03214.

Yes No N.A

NCR No :

RSPO03214

(Critical)

2.1.2 A documented system for ensuring legal compliance is in place. This system has a means

to track changes to the law and also includes listing and evidence of legal due diligence of

all contracted third parties, recruitment agencies, service providers and labour contractors.

Findings:

The unit of certification has established a documented system for ensuring legal compliance i.e. procedure of “Identifikasi Dan Evaluasi Pemenuhan Peraturan dan Persyaratan Lainnya”, document no. BAS/SOP – LEG/002, revision 04, dat-ed September 01, 2018. The procedure has a means to track changes to the laws. The procedure also include the following: personnel in charge to identify the legal requirements and ensure compliance, list of national and local legals re-quirements, and sources of info, etc. Sources of info come from government institutions, website, mass media, elec-tronic media, and other credible sources. Frequency of update is at least once in a year. Legal department and related functions within the unit of certification have rresponsibility to identify, evaluate, communicate and comply the relevant regulations.

Yes No N.A

NCR No :




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2.1.3 Legal or authorised boundaries are clearly demarcated and visibly maintained, and there is

no planting beyond these legal or authorised boundaries

Findings:

The unit of certification has a map showing location of boundary markers, i.e map of “Peta Lokasi Patok/PAL HGU (BPN)”, scale 1:90.000. Based on field visit, found that the boundary markers are clearly visible and well maintained. The boundaries made from cement concrete and painted. The mark (boundary num-ber) is painted on the top. Some boundaries has been verified and observed that there is no any planted beyond the authorised boundaries.

Yes No N.A

NCR No :

2.2 All contractors providing operational services and supplying labour, and Fresh Fruit Bunch

(FFB) suppliers, comply with legal requirements.

2.2.1 A list of contracted parties is maintained

Findings:

There are 2 contractors available in PT Barumun Agro Sentosa for FFB Transport and Empty Fruit Bunch Transport: Contractor Suyanto with Agreement No. 02/PPP/PT BAS/VIII/2018 dated 1

August 2018 until 31 July 2021. PT Ivan Motor Sejahtera with Agreement No. 001/PPP/PT BAS/VIII/2018 dat-

ed 1 August 2018 until 31 July 2021. All third parties labours are daily casual work. Both contractors maintain list of their workers and PT BAS also has the list of the workers. Meanwhile, FFB sup-pliers list informed that there are 3 (three) FFB suppliers from local community, i.e: PT Mega Agung Pratama (FFB collector from communities and Aek Raso growers), KUD Produsen Sukses Makmur Satahi (Cooperation PSMS), and KUD Produsen Borkat Sahata Maju (Cooperation PBSM).

Yes No N.A

NCR No :

2.2.2 All contracts, including those for FFB supply, contain specific clauses on meeting applica-

ble legal requirements, and this can be demonstrated by the third party.

Findings:

Unit certification have agreements with all contractors. In the agreement between PT BAS and FFB transport contractors, it is mentioned that contractor has to pay their workers in refers to government regulation and has to provide PPE. The company maintain the salary payment record and PPE monitoring before the worker entering working are. There are Standard Operating Procedure related to Supplier and Contractors as follow : No. BAS/SOP-AGR/020 Rev 01 dated 2 January 2020 about Selection,

Evaluation and Reevaluation Supplier-Transport Subcontractors No. BAS/ SOP-TEK/001 Rev 01 dated 2 January 2020 about Selection,

Evaluation and Reevaluation Subcontractors The evaluation records to contractors were conducted as follow: There is record of contractors’ evaluation for PT Ivan Motor Sejahtera on 6

July 2020 for period June 2020. Company has evaluated the contractors every month. Based on agreement no.001/PPP/PT.BAS/VIII/2018 (FFB transport) and no. 001/PPP/PT.BAS/VIII/2018 (Empty Fruit Bunch transport from mill to estate).

There is record of contractors’ evaluation for Suyanto on 6 July 2020 for pe-riod June 2020. Company has evaluated the contractors every month. Based on agreement no.002/PPP/PT.BAS/VIII/2018 (FFB transport) and no. 002/PPP/PT.BAS/VIII/2018 (Empty Fruit Bunch transport from mill to estate

Yes No N.A

NCR No :




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2.2.3 All contracts, including those for FFB supply, contain clauses disallowing child, forced and

trafficked labour. Where young workers are employed, the contracts include a clause for

their protection

Findings:

There is no clause for disallowing child, forced ad trafficked labour in the agree-ment between company and FFB transports as seen by auditor in agreements below: - FFB Transport agreement with Suyanto and PT Ivan Motor Sejahtera, there

is no clause about disallowing child, forced and trafficked labour to be em-ployed by the third party

- In FFB Sell-Purchase Agreement with Cooperation PSMS period 29 May 2019 until 27 May 2029, there is no clause about disallowing child, forced and trafficked labour to be employed by the third party

- In FFB Sell-Purchase Agreement with Cooperation PBSM period 29 June 2020 until 29 June 2030, there is no clause about disallowing child, forced and trafficked labour to be employed by the third party

- In FFB Sell-Purchase Agreement with PT Mega Agung Pratama (FFB Sup-plier) period 1 January 2020 until 31 December 2020, there is clause about disallowing child labor and pregnant woman in accordance with applicable Law and Regulation, but there is no clause about disallowing forced and trafficked labour to be employed by the third party.

Meanwhile, the company has maintain records of a list of workers from contrac-tors with information of birth of date. Based on this data, all workers are above 18 years old. However, in Working Agreement with third party Suyanto and PT Ivan Motor Sejahtera (FFB Transport) and FFB Supplier Agreements with Cooperation PSMS, Cooperation PBSM, there is no clause about disallowing child, forced and

trafficked labour to be employed by the third party. This condition was raised as

non conformity No: RSPO03215.

Yes No N.A

NCR No :

RSPO03215

(Non-Critical)

2.3 All FFB supplies from outside the unit of certification are from legal sources.

2.3.1 (C) For all directly sourced FFB, the mill requires:

Information on geo-location of FFB origins

Proof of the ownership status or the right/claim to the land by the grower/ smallholder

Where applicable, valid planting/ operating/ trading license, or is part of a cooperative

which allows the buying and selling of FFB

Findings:

Company has a list of FFB suppliers from outside certification scope in 2019. There is 2 FFB suppliers is consist of 1 Smallholders (KUD) and 1 growers. Smallhollder and grower were directly sourced FFB suppliers. The Company has identified the geo-locations of FFB origins of its FFB suppliers. The company has overlaid between FFB supplier maps with the map of the forest area of North Sumatra Province in 2019. Based on the results of the overlay, it is known that location of FFB supplier is outside the forest area. For example FFB supplier in 2020 as directly sourced FFB suppliers, e.i KUD Produsen Sukses Makmur Satahi and PT. Mega Agung Pratama. The company has also information of the ownership status or the right/claim to the land of their FFB suppliers.

Yes No N.A

NCR No :

2.3.2 For all indirectly sourced FFB, the unit of certification obtains from the collection centres,

agents or other intermediaries, the evidence as listed in Indicator 2.3.1

PROCEDURAL NOTE : For Implementation Procedure for 2.3.2 refer to Annex 4




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Findings:

N/A, there is not indirect sourced FFB

Yes No N.A

NCR No :

Principle 3 : Optimise productivity, efficiency, positive impacts and resilience

3.1 There is an implemented management plan for the unit of certification that aims to achieve

longterm economic and financial viability

3.1.1 (C) A business or management plan (minimum three years) is documented that includes, where

applicable, a jointly developed business case for Scheme Smallholders

Findings:

The unit of organization has a documented management plan of estates and POM for period 2020 to 2024 i.e. “Proyeksi Rencana Kerja Anggaran Perus-ahaan”. The plan has been approved by top management of the unit of certifica-tion. The plan was contains financial indicators, forecast of prices, production cost, other costs, projection of crop, oil extraction rate (OER), kernel extraction rate (KER), etc.

Yes No N.A

NCR No :

3.1.2 An annual replanting programme projected for a minimum of five years with yearly review,

is available.

Findings:

The unit certification has defined replanting programm for period 2020 to 2024 as documented on document Rencana Replanting PT Barumun Agro Sentosa”. Herewith replanting plan data for each year:

- Year 2020: 0 ha - Year 2021: 1,660 ha - Year 2022: 2,000 ha - Year 2023: 2,011 ha - Year 2024: 2,013 ha

This plan has disscussed yearly with through management review.

Yes No N.A

NCR No :

3.1.3 The unit of certification holds management reviews at planned intervals appropriate to the

scale and nature of the activities undertaken.

Findings:

The unit of certification has established a documented procedure for manage-ment review i.e.: SOP “Tinjauan Manajemen”, document no. BAS/SOP-MR/007, revision 04, dated April 01, 2020. The SOP contains mechanism for conducting management review. The review will be conducted at least once in a year. Meet-ing agenda (input) included following items: follow up of previous management review meeting, audit results and compliance to legal requirements, external communication including customer feedback, process performance & product conformity, environmental performance, program & target achievement, correc-tion & corrective actions status, changes that could be affected to the manage-ment system, and recommendation for improvement. The last management review meeting was conducted on January 21, 2020. Rec-ords of meeting such as audit report, minute of meeting, and attendance list are available. The meeting was attended by 16 participants consist of CEO, vice di-

Yes No N.A

NCR No :




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rector, managers, and assisstants. The meeting output consist of recommenda-tion for improvement (FFB production, OER, management system, and etc); re-sources need (manpower and infrastructure); and etc. Records of action taken as a follow-up to management review are available.

3.2 The unit of certification regularly monitors and reviews their economic, social and environ-

mental performance and develops and implements action plans that allow demonstrable

continuous improvement in key operations.

3.2.1 (C) The action plan for continuous improvement is implemented, based on consideration of the

main social and environmental impacts and opportunities of the unit of certification.

Findings:

The unit of certification has establish continual improvement plan as stated on document “quality and environmental objectives”. The plan has been considered opportunity for improvement in any area. Formally, the plan monitored and eval-uated during management review meeting. Action plan and person incharge to achieve plan has been defined. Some records were reviewed e.g.: meeting mi-nute of management review, internal audit records, and monitoring of quality and environmental objectives. The improvement plan consist of optimising the yield of the supply base, reduc-tion in use of pesticides, environmental impacts, waste reduction, pollution and greenhouse gas (GHG) emissions, impacts on communities, workers and small-holders, conservation area, etc.

Yes No N.A

NCR No :

3.2.2 As part of the monitoring and continuous improvement process, annual reports are submit-

ted to the RSPO Secretariat using the RSPO metrics template.

Findings:

The RSPO metrics template has not available yet. However the unit of certifica-tion has been submitted ACOP 2019 Report. And the report has been response by RSPO ACOP Team through email dated February 04, 2020.

Yes No N.A

NCR No :

3.3 Operating procedures are appropriately documented, consistently implemented and moni-

tored.

3.3.1 (C) Standard Operating Procedures (SOPs) for the unit of certification are in place.

Findings:

The company has established a set documented procedure for mill and estate in-cluding supporting processes such as HR, OHS, GA, and etc. The procedure of plantation namely Standard Operasional Prosedur (SOP) – Agronomy, consist of 37 SOP, consist of: 1. Survey Lahan, document no. BAS/SOP-AGR/001, rev. 02, dated July 01,

2018 2. Pembukaa Lahan Tanpa Bakar (zero burning), document no. BAS/SOP-

AGR/002 rev. 02, dated July 01, 2018. 3. Pengukuran dan Pemetaan, document no. BAS/SOP-AGR/003, rev. 00,

dated July 01, 2018. 4. Satuan Luas Blok, document no. BAS/SOP-AGR/004, rev. 00, dated July

01, 2018 5. Pemesanan Kecambah, document no. BAS/SOP-AGR/005, rev. 00, dated

July 01, 2018. 6. Pembibitan Kelapa Sawit, document no. BAS/SOP-AGR/006, rev. 02, dated

July 01, 2018. 7. Persiapan penanaman kelapa sawit, document no. BAS/SOP-AGR/007, rev.

Yes No N.A

NCR No :




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03, dated July 01, 2018. 8. Perawatan tanaman belum menghasilkan, document no. BAS/SOP-

AGR/008, rev. 00, dated July 01, 2018 9. Mutasi TBM ke TM, document no. BAS/SOP-AGR/009, rev. 00, dated July

01, 2018 10. Pemupukan Kelapa Sawit, document no. BAS/SOP-AGR/010, rev. 02, dated

July 01, 2018 11. Panen TBS, document no. BAS/SOP-AGR/011, rev. 03, dated July 01, 2018 12. Penunasan, document no. BAS/SOP-AGR/012, rev. 02, dated July 01,

2018. 13. Pengendalian Gulma, document no. BAS/SOP-AGR/013, rev. 03, dated July

01, 2018. 14. Kastrasi dan Sanitasi, document no. BAS/SOP-AGR/014, rev. 00, dated July

01, 2018. 15. Pembuatan dan Pemeliharaan Saluran Air, document no. BAS/SOP-

AGR/015, rev. 02, dated July 01, 2018. 16. Perawatan Jalan dan Jembatan, document no. BAS/SOP-AGR/016, rev. 02,

dated July 01, 2018. 17. Pembuatan Kesatuan Contoh Daun document no. BAS/SOP-AGR/017, rev.

01, dated July 01, 2018. 18. Perencanaan dan pengendalian realisasi produksi, document no. BAS/SOP-

AGR/018, rev. 00, dated July 01, 2018. 19. Pemanfaatan Limbah Cair PKS document no. BAS/SOP-AGR/019, rev. 03,

dated July 01, 2018. 20. Seleksi, evaluasi dan re-evaluasi supplier sub-kontraktor Pengangkutan,

document no. BAS/SOP-AGR/020, rev. 00, dated July 01, 2018. 21. Sensus Hama dan Penyakit, document no. BAS/SOP-AGR/021, rev. 02,

dated July 01, 2018. 22. Pemanfaatan Tandan Kosong Sawit, document no. BAS/SOP-AGR/022,

rev. 00, dated July 01, 2018. 23. Pengelolaan Pengangkutan TBS dan Non TBS, document no. BAS/SOP-

AGR/023, rev. 02, dated July 01, 2018. 24. Penggunaan Pestisida dan Pengelolaannya document no. BAS/SOP-

AGR/024, rev. 00, dated July 01, 2018. 25. Tanam Kacangan, document no. BAS/SOP-AGR/025, rev. 00, dated July

01, 2018. 26. Pancang, Lubang Tanam dan Sisip, document no. BAS/SOP-AGR/026, rev.

00, dated July 01, 2018. 27. Pengendalian Trithava Rufivena, document no. BAS/SOP-AGR/027, rev. 00,

dated July 01, 2018. 28. Pengendalian Kumbang Tanduk, document no. BAS/SOP-AGR/028, rev. 00,

dated July 01, 2018. 29. Pengendalian Rayap, document no. BAS/SOP-AGR/029, rev. 00, dated July

01, 2018. 30. Pengendalian Tikus dan Burung Hantu, document no. BAS/SOP-AGR/030,

rev. 00, dated July 01, 2018. 31. Pengendalian Ulat Kantong document no. BAS/SOP-AGR/031, rev. 00, dat-

ed July 01, 2018. 32. Pengendalian Ulat Api, document no. BAS/SOP-AGR/032, rev. 00, dated

July 01, 2018. 33. Pembuatan Teresan, document no. BAS/SOP-AGR/033, rev. 00, dated July

01, 2018. 34. Pengendalian Penyakit Tandan, document no. BAS/SOP-AGR/034, rev. 00,

dated July 01, 2018. 35. Pengendalian Penyakit Busuk Pangkal Batang, document no. BAS/SOP-

AGR/035 rev. 00, dated July 01, 2018. 36. Pengendalian Penyakit Busuk Pangkal Pupus document no. BAS/SOP-




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AGR/036, rev. 00, dated July 01, 2018. 37. Sensus Pokok, document no. BAS/SOP-AGR/037, rev. 00, dated July 01,

2018.

The procedure of mill namely Standard Operasional Prosedur (SOP) – “Pabrik Pengolahan Kelapa Sawit (PKS)”, consist of 11 SOP, consist of: 1. Pengolahan pabrik Kelapa Sawit, document no. BAS/SOP-PKS/001, revi-

sion 03, dated November 01, 2018. 2. Persiapan pengoperasian Pabrik Kelapa Sawit, document no. BAS/SOP-

PKS/002, revision 03, dated November 01, 2018. 3. Menjalankan PKS, document no. BAS/SOP-PKS/003, revision 03, dated

November 01, 2018. 4. Memberhentikan PKS, document no. BAS/SOP-PKS/004, revision 03, dated

November 01, 2018. 5. Laboratorium, document no. BAS/SOP-PKS/005, revision 03, dated Novem-

ber 01, 2018. 6. Prosedur Administrasi PKS, document no. BAS/SOP-PKS/006, revision 03,

dated November 01, 2018. 7. Pengoperasian Vertical Sterilizer, document no. BAS/SOP-PKS/007, revi-

sion 01, dated November 01, 2018. 8. Penerimaan TBS Sustainability dan Non Sustainability Certified RSPO,

ISPO dan ISCC, document no. BAS/SOP-PKS/008, revision 03, dated No-vember 01, 2018.

9. Pencucian Storage Tank, document no. BAS/SOP-PKS/009, revision 02, dated November 01, 2018.

10. Pencatatan Produksi, document no. BAS/SOP-PKS/010, revision 04, dated November 01, 2018.

11. Maintenance (Perawatan), document no. BAS/SOP-PKS/011, revision 01, dated November 01, 2018.

The company also has established documented working instruction (WI) for Mill, i.e.: “Instruksi Kerja Pabrik Kelapa Sawit”, consist of 13 WI, consist of: 1. WI no. BAS/WI-PKS/001, revision 02, dated November 01, 2018, namely

Ketel Uap 2. WI no. BAS/WI-PKS/002, revision 02, dated November 01, 2018, namely

Operasional Turbin Uap 3. WI no. BAS/WI-PKS/003, revision 02, dated November 01, 2018, namely

Opersional Generator 4. WI no. BAS/WI-PKS/004, revision 02, dated November 01, 2018, namely

Opersional Jembatan Timbang 5. WI no. BAS/WI-PKS/005, revision 02, dated November 01, 2018, namely

Operasional Loading Ramp 6. WI no. BAS/WI-PKS/006, revision 03, dated November 01, 2018, namely

Operasional Stasiun Sterilizer 7. WI no. BAS/WI-PKS/007, revision 02, dated November 01, 2018, namely

Operasional Stasiun Thrsher (Penebas) 8. WI no. BAS/WI-PKS/008, revision 03, dated November 01, 2018, namely

Operasional stasiun pressing 9. WI no. BAS/WI-PKS/009, revision 02, dated November 01, 2018, namely

Operasional stasiun decricarper (pemisah sampah halus) 10. WI no. BAS/WI-PKS/010, revision 03, dated November 01, 2018, namely

Operasional stasiun klarifikasi 11. WI no. BAS/WI-PKS/011, revision 03, dated November 01, 2018, namely

Operasional stasiun Pemurnian Minyak 12. WI no. BAS/WI-PKS/012, revision 02, dated November 01, 2018, namely

Operasional Pengolahan Drab 13. WI no. BAS/WI-PKS/013, revision 03, dated September 08, 2018, namely




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Operasional Sortase PKS

Human resources and general affair procedures has been defined in the docu-mented “SOP Personalia dan Umum”, that consist of 26 SOP, i.e: Document no. BAS/SOP-PUM/001 till BAS/SOP-PUM/026.

Copies of the SOP’s are available on site and is it documented in Bahasa, so can easy to understand by all levels and functions within the organization. A set of copy of SOP and WI are maintained by document controller and relevant copies available at point of use. Updated copies of SOP or WI found at point visited within Mill’s and estate areas. The company maintain records of masterlist of all documents (SOP and WI). There is no need to make translation due to all SOP and WI written in Bahasa. Records of training for all levels and functions are available. The company has defined a documented procedure for internal control, i.e.:

- SOP No. BAS/SOP-MR004, revision 04, dated April 30, 2018, namely Audit Internal

- SOP No. BAS/SOP-MR005, revision 03, dated April 30, 2018, namely Tin-dakan Perbaikan dan Pencegahan

- SOP No. BAS/SOP-MR007, revision 03, dated April 30, 2018, namely Tin-jauan Manajemen.

- SOP No. BAS/SOP-MR002, revision 03, dated April 30, 2018, namely Pen-gendalian produk tidak sesuai

- SOP No. BAS/SOP-MR009, revision 02, dated April 30, 2018, namely Mana-jemen Resiko.

3.3.2 A mechanism to check consistent implementation of procedures is in place.

Findings:

The unit of certification has a mechanism to check consistent implementation of procedure and to address non-compliance and corrective action for continuous improvement i.e.:

- SOP No. BAS/SOP-MR004, revision 04, dated April 30, 2018, namely Audit Internal

- SOP No. BAS/SOP-MR005, revision 03, dated April 30, 2018, namely Tin-dakan Perbaikan dan Pencegahan

- SOP No. BAS/SOP-MR007, revision 03, dated April 30, 2018, namely Tin-jauan Manajemen

There is evidence that the mechanisms are implemented, such as records of cor-rective actions and improvement undertaken are available as documented on document corrective action request.

Yes No N.A

NCR No :

3.3.3 Records of monitoring and any actions taken are maintained and available.

Findings:

There are records of monitoring and actions taken are maintained and available, for example records of internal. Internal audit carried out 2 (two) times a year. The last internal audit for mill and estate has been carried out on April 27-30, 2020 and for Medan head office on April 27, 2020. Records of internal audit such as list of internal auditor, corrective action request, checklist audit, audit plan, and opening and closing attendance list are available. Records of corrective actions taken and improvement as a follow-up to audit in-ternal findings are available on Corrective Action Requests.

Yes No N.A

NCR No :




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3.4 A comprehensive Social and Environmental Impact Assessment (SEIA) is undertaken prior

to new plantings or operation, and a social and environmental management and monitoring

plan is implemented and regularly updated in ongoing operations.

3.4.1 (C) In new plantings or operations including mills, an independent SEIA, undertaken through a

participatory methodology involving the affected stakeholders and including the impacts of

any smallholder/outgrower scheme, is documented.

Findings:

In carrying out of of mill and estate operations, the unit of certification has been identified environmental aspect and conducted environmental impacts assess-ment and documented in the AMDAL (analysis of environment impact) document. AMDAL processes and document preparation has been in accordance with na-tional regulations and approved by Governor of Sumatera Utara province (decree no. 188.44/444/KPTS-/2014, dated July 25, 2015). The AMDAL has covered all operations of mill with capacity 60 tonne FFB per hour and estate area 12,641.50 hectare. The unit of certification is located at Ujung Gading Jae village, District Simangambat, Padang Lawas Utara regency, Province of Sumatera Utara. The unit of certification has obtained environmental permit (izin lingkungan) no. 660/98 / BPPTSU / 2 / 4.1 / VIII / 2014, dated August 25, 2014 from government authorities. All of environmental aspects including physical and chemcal, social and culture, and public health has been identified and assesed. There is an environmental management plan as provided in document “Rencana Pengelolaan Lingkungan” (RKL). And, there is document of environmental moni-toring plan as provided in document “Rencana Pemantauan Lingkungan’ (RPL). The RKL & RPL documents are parts of AMDAL document that approved by the authority agency. The unit of certification has a documented Social Impact Assessment (SIA) on year 2010. The SIA document is a refinement of the RKL-RPL documents (no. RC.220/938/B/V/1994, dated May 28, 1994, that has approved by Minister of ag-riculture). In conducting SIA, social impacts have been re-identifed participatory social impact assessment) by involving local communities around the unit of certi-fication areas and company’s workers. The results of participatory impact as-sessment are uses as basis for developing a management plan and monitoring of impacts of the unit of certification. The unit of certification has implemented a social and environmental manage-ment and monitoring plan as defined on regular base. The results of management and monitoring of social and environment are contained on document “Laporan Pelaksanaan Pengelolaan Lingkungan Hidup dan Pemantauan Lingkungan Hidup”. The unit of certification periodically review the SEIA documents and reports it in document “Review Pengelolaan dan Pemantauan Sosial dan Lingkungan PT BAS”. The last review was conducted on 2019.

Yes No N.A

NCR No :

3.4.2 For the unit of certification, a SEIA is available and social and environmental management

and monitoring plans have been developed with participation of affected stakeholders.




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Findings:

The unit of certification has a documented Social Impact Assessment (SIA) on year 2010. The SIA document is a refinement of the RKL-RPL documents (no. RC.220/938/B/V/1994, dated May 28, 1994, that has approved by Minister of ag-riculture). In conducting SIA, social impacts have been re-identifed participatory social impact assessment) by involving local communities around the unit of certi-fication areas and company’s workers. The results of participatory impact assessment are uses as basis for developing a management plan and monitoring of impacts of the unit of certification.

Yes No N.A

NCR No :

3.4.3 (C) The social and environmental management and monitoring plan is implemented, reviewed

and updated regularly in a participatory way.

Findings:

The unit of certification periodically review the SEIA documents at least 1 (one) time a year and reports it in document “Review Pengelolaan dan Pemantauan Sosial dan Lingkungan PT BAS”. The last review was conducted internally on 2019.

Yes No N.A

NCR No :

3.5 A system for managing human resources is in place

3.5.1 Employment procedures for recruitment, selection, hiring, promotion, retirement and termi-

nation are documented and made available to the workers and their representatives.

Findings:

Company has employment procedures as follow:

- SOP of recruitment no. BAS/SOP-PUM/002 Rev 03 dated 13 July 2020 - SOP of promotion no. BAS/SOP-PUM/004 Rev 02 dated 30 April 2018 - SOP of mutation no. BAS/SOP-PUM/007 Rev 02 dated 30 April 2018 - SOP of resignation no. BAS/SOP-PUM/008 Rev 02 dated 30 April 2018 - SOP of salary payment no. BAS/SOP-PUM/025 Rev 00 dated 30 April 2018

All summary of those procedures are written in Collective Agreement (PKB) and all workers have PKB handbook period 2020-2021 given in Indonesian language, as stated in Clause 10 about Recruitment, Clause 14 about Promotion, Mutation, and Demotion, Clause 41 about Work Termination and Clause 65-68 about Pen-sion or Retirement. Employment type in PT Barumun Agro Sentosa available are permanent workers and casual daily workers. Third parties workers are available for FFB transport works and registered under contractors

Yes No N.A

NCR No :

3.5.2 Employment procedures are implemented and records are maintained

Findings:

There are records of procedure implementation examples as follow: - Pension record for worker Murnihati as Nurse in clinic of PT BAS (joined date

4 April 1993 and birth date 21 May 1963) and pension date 22 May 2020 (57 years), the worker get pension money Rp 141,734,321 paid by company. The worker has not worked since 23 May 2019. After the pension letter, the estate manager has made letter dsate 27 March 2020 to process the payment. The payment evidence of pension money signed by Murnihati on 3 June 2020 for Rp 141,734,321. Before the process, human resource manager is sending pension cost approval to Manager of PT BAS on 18 April 2020

- Recruitment record:

Yes No N.A

NCR No :




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Application letter from Bayu Andika on 26 December 2019 completed with CV, photo, id card, school certificate and awards.

Application Form filled by Bayu Andika dated 7 January 2020

Selection result for Bayu Andika for physcotest

Medical test result 13 January 2020 from Aek Sigala Gala clinic.

Join date to work 9 January 2020

Promotion evaluation test result as District Admin

Form of Status Renewal for Bayu Andika from Casual Worker for salary increase to Rp 2,850,000 per month afterpassing 3 months probation period

Decree No. 01/SK/PT.BAS/IV/2020 dated 20 April 2020 from Estate Manager PT BAS of Worker Appointment as Monthly Permanent Worker for Bayu Andika started 1 May 2020 with Grade IA

3.6 An occupational health and safety (H&S) plan is documented, effectively communicated and

implemented.

3.6.1 (C) All operations are risk assessed to identify H&S issues. Mitigation plans and procedures

are documented and implemented.

Findings:

Top management’s of the unit of certification has established health and safety policy, i.e. “Kebijakan Keselamatan dan Kesehatan Kerja”. The policy was signed by Country Head of Wilmar Group Indonesia on dated April 01, 2019. The policy written in Bahasa, so can easy to understanding by all workers at all func-tions and levels within the organization. Copy of the policy is found both in Mill and estates. The policy also can access in company’s website. There is a documented SOP to conduct risk assessment i.e. “Prosedur Identifi-kasi Aspek-Dampak, Bahaya-Resiko Program Lingkungan dan K3” document no. PRO-GEN-008, revision 02, dated October 10, 2017. The SOP explains how to conduct a risk assessment and defined risk control, and including how often the results of the assessment are reviewed and the conditions under which the re-sults of the assessment must be reviewed again. Results of risk assessemt are recorded on the form “Identifikasi dampak ling-kungan serta analisa bahaya dan resiko K3” form no. FRM-GEN-016. The latest risk assessment updated is done on January 20, 2020. The results of the risk as-sessment are found both in the mill and estates. The assessment has included all operations, processes and activities in the mill and estates including working tool used and activities up and down stairs. Mitigation plan or risk control for the po-tential risk identified are recorded on the same form. The mitigation plan including engineering control, procedural control and PPE implementation. There is suffi-cient evidence that the plan has been appropriate implemented and monitored. The risk assessment and actions plan were checked and reviewed if incident oc-curred to prevent further recurrence. Sources of the hazard and risk control will be revised by considering actual incidents occurred. Records of accidents and in-cidents are available both in mill and estates. Herewith accident records for year 2019:

- Estate: 3 cases, without LTA

- Mill: 1 case, 49 days of LTA

Yes No N.A

NCR No :

3.6.2 (C) The effectiveness of the H&S plan to address health and safety risks to people is monitored.

Findings:

The unit of certification has a committee for OHS namely Panitia Pembina Keselamatan dan Kesehatan Kerja (P2K3). The P2K3 is formed based on statu-

Yes No N.A




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tory regulation, Permenaker No. PER.04/MEN/1987. The P2K3 of the unit of cer-tification has approved by head of manpower agency of Sumatera Utara through decree no. 97-7/DTK/SU/VII/2019, dated September 2019. The P2K3 has re-sponsible to implement of the OHS plan and monitor of its effectiveness. There are evidences that the H&S plan/program are implemented and monitored, for example: hold monthly P2K3 meeting, conducted monitoring emission, con-ducted OHS inspection (including PPE, fire fighting equipments, unsafe condi-tions, and etc), conducted annual and specific medical surveillance, etc. Based on field visit to spraying and harvesting and mill activities it can be seen that all workers uses the appropriate PPE. The workers inform that the PPE pro-vided by the unit of certification and will be replaced if damaged without charged. The unit of certification takes the necessary actions if the target is not achieved, especially if a work accident occurs. Accident investigations are always carried out every time a work accident occurs. Investigations are carried out to find out the root causes of accidents and determine necessary actions so ensure that ac-cidents do not reoccure. However, the results of the accident investigation that occurred on June 1, 2019, at the Aek Sigalagala POM on behalf of Bernad Siburian, one of maintenance employees did not match the information obtained during the interview with relat-ed parties. Furthermore, the result of investigation results do not find the root

causes, so the recommendations for improvement are not relevant. This condi-

tion was raised as non conformity No: RSPO03216.

NCR No :

RSPO03216

(Critical)

3.7 All staff, workers, Scheme smallholders, outgrowers and contract workers are appropriately

trained.

3.7.1 (C) A documented programme that provides training is in place, which is accessible to all staff,

workers, Scheme Smallholders and outgrowers, taking into account gender-specific needs,

and which covers applicable aspects of the RSPO P&C, in a form they understand, and

which includes assessments of training.

Findings:

The company has defined formal training program for year 2019 and 2020 as documented on record no F-HRD-04 namely “Program Training and Program Training Plantations”. The record contains information of training theme/name, PIC, trainer plan, expectant trainee, and time. The formal training program devel-oped by HR department and approved by management of the unit of certification. The training programe cover all aspects of the RSPO principles & criterions in-clude: Regular assessment of training needs of all staff, workers, smallholders and contract workers; Training for workers on smallholder plots; Documentation of all the training assessment needs, formal training conducted and the list of par-ticipants attending these formal training. The training for workers has cover OHS matters, best management practices of mill and plantation, relevant laws and regulations, management tools (ISO 9001, ISO 14001, and etc), policies of com-pany and etc. Some documents and records were reviewed, such as: - Standard Operting Procedure (SOP) of Personalia & Umum Document No.

BAS/SOP-PUM/005, revision 02, dated April 30, 2018, namely “Pelatihan Karyawan” (worker training). The SOP explains mechanism of training start-ing from defined training need analysis, training proposal, training performing, and reporting and evaluation of training.

- Identification and analysis of training neends dated April 01, 2019 - Training of chemist application, Aek Sigala-gala, dated March 20, 2019. The

Yes No N.A

NCR No :




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training was attended by 18 participants - Training of IPM, Aek Sigala-gala estate dated June 23, 2020. The training

was attended by 22 participants - Training evalution (training effectiveness), for training date March 30, 2019,

training topic: application of chemist - Program Training and Program Training Plantations year of 2019 & 2020 Based on interview with employees during fields visit, the workers can show their competence. They can explain and demonstrate how to work properly and safely.

3.7.2 Records of training are maintained, where appropriate on an individual basis.

Findings:

The unit of certification keep and maintain records and document of training need assessment, training program, attendance list, training evalua-tion/effectiveness, and training record of each personnel. The training records for each employee recorded on document “Kartu Riwayat Pelatihan – F-HRD-08”. The records are updated regularly every time the per-sonnel concerned have completed the training. Some records were reviewed and found that the data were consistent.

Yes No N.A

NCR No :

3.7.3 Appropriate training is provided for personnel carrying out the tasks critical to the effective

implementation of the Supply Chain Certification Standard (SCCS). Training is specific and

relevant to the task(s) performed

Findings:

The last training of Supply chain was conducted on 17 March 2020 attended by 53 participants. Based on interviewed with the relevant personnel involved in the SC that the persons have knowledgeable and competent in implementing the supply chain procedures.

Yes No N.A

NCR No :

Supply chain requirements for mills

3.8.1 (C) A mill is deemed to be Identity Preserved (IP) if the FFB used by the mill are sourced from

plantation/ estates that are certified against the RSPO Principles and Criteria (RSPO P&C),

or against the Group Certification scheme. Certifi-cation for CPO mills is necessary to veri-

fy the volumes and sources of certified FFB entering the mill, the implementation of any

processing controls (for example, if physical separation is used), and volume sales of

RSPO certified products. If a mill process certified and uncertified FFB without physically

separating them, then only Module E is applicable.

Note : Definition Identity Preserved Mill

Findings:

N/A, due to the mill use Mass Balance for its supply chain model.

Yes No N.A

NCR No :

3.8.2 (C) A mill is deemed to be MB if the mill process FFB from both RSPO certified & uncertified

plantations/estates. A mill may be taking delivery of FFB from uncertified growers, in addi-

tion to those from its own and 3rd party certified supply base. In that scenario, the mill can

claim only the volume of oil palm products produced from processing of the certified FFB

as MB.




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Note : Definition Mass Balance Mill

Findings:

During recertification audit, the mill receive certified and uncertied FFB. All incom-ing FFB has been calculated and input in mass balance sheet. The mill is not im-plement physical Separation, to process certified and uncertified FFB because the mill taking delivery of FFB from uncertified growers.

Yes No N.A

NCR No :

3.8.3 (C) The estimated tonnage of CPO and PK products that could potentially be produced by the

certified mill shall be recorded by the certification body (CB) in the public summary of the

P&C certification report. This figure represents the total volume of certified oil palm product

(CPO and PK) that the certified mill is allowed to deliver in a year. The actual tonnage pro-

duced shall then be recorded in each subsequent annual surveillance report.

Note : Explanation (Volume and Product Integrity)

Findings:

During recertification audit, the mill has projected certified volume for CPO and PK base on projection of FFB production each own estate next year. From the data table 3 (above) regarding CPO and PK production and sold period of July 2019 to June 2020 and projected for period of July 2020 to June 2021, the actual production volume (certified product) in license periode July 2019 to June 2020 (current license) is 53,638.98 MT of CPO and 13,321.92 MT of PK. While total volume of certified oil palm product (CPO and PK) that the certified mill is allowed to deliver in period of July 2019 to June 2020 is 2,000 MT CSPO and 7,231.62 MT CSPK.

Yes No N.A

NCR No :

3.8.4 (C) The mill shall also meet all registration and reporting requirements for the appropriate sup-

ply chain through the RSPO IT platform.

Note : Explanation (Volume and Product Integrity)

Findings:

The mill have meet all registration and reporting requirements for the appropriate supply chain through the RSPO supply chain managing organization (RSPO IT platform).

Yes No N.A

NCR No :

3.8.5 (C) The mill shall have written procedures and/or work instructions equivalent to ensure the

implementation of all elements of the applicable supply chain model specified. This shall

include at minimum the following :

Complete and up to date procedures covering the implementation of all the elements of

the supply chain model requirements.

Complete and up to date records and reports that demonstrate compliance with the

supply chain model requirements (including training records)

Identification of the role of the person having overall responsibility for and authority

over the implementation of these requirements and compliance with all applicable re-

quirements. This person shall be able to demonstrate awareness of the mill’s proce-

dures for the implementation of this standard

The mill shall have documented procedures for receiving and processing certified and

non-certified FFBs including ensuring no contamination in the IP mill

Note : Documented Procedure




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Findings:

The mill have a set procedures and/or work instructions or equivalent to ensure the implementation of all elements of the applicable supply chain model specified. As stated on section 5.3 above as well as the person having overall responsibility for and authority over the implementation of these requirements and compliance with all applicable requirements. The mill have documented procedures for re-ceiving and processing certified FFBs i.e: 1. Procedure Administration Palm Kernel Oil Mill SOP-PKO-06, Rev 00,

effective date on April 01, 2011: a. PKO charging to thr storage tank and PKE to warehouse b. Heating and temperatur c. Tank cleaning PKO dan house keeping PKE warehouse d. Loading and charging PKO e. Drained Storage tank f. Sounding PKO and PKE g. Measurement of Production (PKO and PKE) h. Procedure delivery production i. The cover letter delivery j. Procedure acceptance Kernel

2. Procedure for Acceptance of Raw Materials form Palm oil mill and Palm kernel oil

3. Procedure for report Over Production and claims CPO and PKO certified to Board Certification Body (BAS/SOP-MKT/005, rev.02) effective date 15 Jan-uary 2018

4. Guidenlines Preparation for the Operation, processing and dismiss on Palm Kernel Oil Mill (SOP-PKO effective date April 01, 2011): a. Procedure for Processing PKO (SOP-PKO-01 Rev 00 ), effective date on

April 01, 2011 b. Procedure Preparation for the Operation PKO Mill ( SOP-PKO-02 rev

00) effective date on April 01, 2011 c. Procedur for the Operation processing (SOP-PKO-03 Rev 00) effective

date on April 01, 2011 d. Procedure for dismiss on Palm Kernel Oil Mill (SOP-PKO-04 Rev 00) ef-

fective date on April 01, 2011 e. Procedur for Laboratorium PKO Mill (SOP-PKO-05 Rev 00) effective date

on April 01, 2011 f. Procedure for Administration PKO Mill (SOP-PKO-06 Rev 00) effective

date on April 01, 2011 g. Flowchart Palm Kernel Oil Mill ( SOP-PKO-07 Rev 00) effective date on

April 01, 2011 5. Procedure for the tender and production sales contract (SOP-MKT-01

Rev.04, effective date on 15 January 2018), 6. Procedure for dispatch of CPO & PK to customer (SOP-MKT-02 Rev.03, ef-

fective date on 15 January 2018), 7. Procedure for production delivery report on mill office (SOP-MKT-04 Rev.03,

effective date on 15 January 2018), 8. Procedure for customer satisfaction survey (SOP-MKT-06 Rev.02, effective

date on April 01,2011), 9. Procedure for record of production ( SOP-PKS-11 Rev 01, effective date

August 01 , 2016). 10. Procedure Treacibility Product (SOP-MR-23 Rev 00, effective date on April 1,

2011) 11. Procedure Audit Internal (SOP BAS/SOP-MR/004 rev 04 dated 30 April

2018) which state should be conduct twice a year. 12. Procdure Management Review (SOP/BAS-MR/07 Rev 03 dated 30 April

2018)

Yes No N.A

NCR No :




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The mill assigned Mr Imran as person having overall responsibility for and author-ity over the implementation of these requirements and compliance with all appli-cable requirements. As stated on Decree Letter No.03/ST-MM/BAS/III/2020 dated 2 March 2020. The last training of Supply chain was conducted on 17 March 2020 attended by 53 participants. Based on interviewed with the relevant personnel involved in the SC that the persons have knowledgeable and competent in implementing the supply chain procedures.

3.8.6 (C) The mill shall have a written procedure to conduct annual internal audit to determine

whether the mill :

a. Conforms to the requirements in the RSPO Supply Chain Certification Requirement

for mills and the RSPO Role on Market Communications and Claims.

b. Effectively implements and maintains the standard requirements within its organisa-

tion

Any non-conformities found as part of the internal audit shall be issued & required cor-

rective action. The outcomes of the internal audits and all actions taken to correct non-

conformities shall be subject to management review at least annually. The mill shall

maintain the internal audit records and reports

Note : Internal Audit

Findings:

The company has procedure of internal audit (SOP-MR-04 revision 04 effective date April 30, 2018). The company has internal audit program year 2020 (Macrh and April). The company has audit internal record for 1st semester year 2020 on March 27-30 April 20200. There is zero (0) non conformity. The company has been well conducted on RSPO SCCS. The result of internal audit have recorded on audit internal report.

Yes No N.A

NCR No :

3.8.7 (C) a. The mill shall verify and document the tonnage and sources of certified and the tonnage

of non-certified FFBs received

b. The mill shall inform the CB immediately if there is a projected overproduction of certi-

fied tonnage

c. The mill shall have a mechanism in place for handling non-conforming FFB and/or doc-

uments

Note : Purchasing/Good In

Findings:

The mill have mechanism to verify and document the tonnage and sources of certified FFBs received i.e. procedures of identification and treceability raw materal (BAS/SOP-MR/013, rev.00, date 6-11-2018) to know the quantity or volume of incoming certified material, the FFB truck will stop at the weighbridge and the operator will check relevant documents and issue a weighbridge ticket. The document to be verified from certified sources include delivery note stamped at the origin estate, as well as certificate code including selected SCC Model. All certified FFB will be transferred to assign loading ramp. The operator will indicate information regarding storage location on each weighbridge ticket according to the relevant claim. The mill have been established mechanism to inform CB immediately if there is projected overproduction of certified tonnage as stated on Procedure for report Over Production and claims CPO and PKO certified to Board Certification Body

Yes No N.A

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(BAS/SOP-MKT/005, rev.02) effective date 15 January 2018. During recertification audit, thre is not overproduction. The mill has procedure regarding handling nonconforming product and/or docu-ments; with document No. BAS/SOP-MR/005 Rev03 Revised date on 30-04-2018. The procedure completely explained how to handle the nonconforming product if happen

3.8.8 (C) The supplying mill shall ensure that the following minimum information for RSPO certified

products is made available in document form. The Information shall be complete and can

be presented either on a single document or across a range of documents issued for RSPO

certified oil palm products (for example, delivery notes, shipping documents and specifica-

tion documentation) :

The name and address of the buyer :

The name and address of the seller;

The loading or shipment / delivery date;

The date on which the documents were issued;

RSPO Supply chain certificate number;

A description of the product, including the applicable supply chain model (Identity

Preserved or Mass Balance or the approved abbreviations);

The quantity of the products delivered;

Any related transport documentation;

A unique identification number;

Note : Sales and goods out

Findings:

The Mill has document accompanying the certified oil palm products delivery i,e.: delivery note, shipping document, and specification doumentations, shipping an-nouncement documents. The supply chain model applied by the Mill and SCC certificate number are available on theses documents. Some documents/records were reviewed, The sample of palm-Trace transaction are:

1) Transaction TR-e32e3a61-52bc a. Seller : PT. BARUMUN AGRO SENTOSA b. Buyer : PT. SARI DUMAI SEJATI c. Seller Contract Number : 060/SO-BAS/PK/V/2020 d. Product : CSPK e. Program : Mass Balance f. Volume : 200MT g. Ship name : N/A h. B/L date : 03-06-2020

The mill has made shipping announcement every shipment that are required to announce and conform trade in the RSPO IT platform.

Yes No N.A

NCR No :

3.8.9 (C) a. The mill shall not outsource its milling activities. In cases where the mill outsources ac-

tivities to independent third parties (e.g. subcontractors for storage, transport or other

outsourced activities), the mill holding certificate shall ensure that the independent

third party complies with the requirements of this RSPO Supply Chain Certification.

b. The mill shall ensure the following:

The mill has legal ownership of all input material to be included in outsourced pro-

cesses;

The mill has an agreement or contract covering the outsourced process with each

contractor through a signed and enforceable agreement with the contractor. The

onus is on the mill to ensure that certification bodies (CBs) has access to the out-




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sourcing contractor or operation if an audit is deemed necessary;

The mill has a documented control system with explicit procedures for the out-

sourced process which is communicated to the relevant contractor;

The mill shall furthermore ensure (e.g. through contractual arrangements) that in-

dependent third parties engaged provide relevant access for duly accredited CBs to

their respective operations, systems, and all information, when this is announced

in advance

Note : Outsourcing Activities

Findings:

During the audit, Aek Sigala-gala palm oil mill used outsourcing for transportation process of certified product to transport CSPO from palm oil mill to storage buyer. Some of transport contract agreement between PT Barumun Agro Sentosa and CV. Gloria document agreement No. 116/BAS-LOG/VII/2020 dated on 7 July 2020. The company has an agreement signed with independent third party legally en-forceable. The legal ownership of the materials has been included in outsourced processes clearly defined in the agreement. The companies are not RSPO certi-fied. The company has procedure of third parties. The company has mechanism to ensure that outsourced activities are in compliance to RSPO SC requirements and facility’s Standard Operating Procedure (SOP) by conduct evaluation of con-taractor. The third party contractor maintained records and available to the CB during the audit. The agreement also stated that the CB has an access to third party if audit conducted needed.

Yes No N.A

NCR No :

3.8.10 (C) The mill shall record the names and contact details of all contractors used for the physical

handling of RSPO certified oil palm products


Findings:

There is no a list of contractors used for the physical handling of RSPO certified oil palm products.

Yes No N.A

NCR No :

3.8.11 (C) The mill shall inform its CB in advance prior to conduct of its next audit of the names and

contact details of any new contractor used for the physical handling of RSPO certified oil

palm products


Findings:

There is no a list of contractors used for the physical handling of RSPO certified oil palm products.

Yes No N.A

NCR No :

3.8.12 (C) a. The mill shall maintain accurate, complete, up-to-date and accessible records and re-

ports covering all aspects of this RSPO Supply Chain Certification Standard require-




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ments.

Note : Record Keeping

b. Retention times for all records and reports shall be a minimum of two (2) years and

shall comply with legal and regulatory requirements and be able to confirm the certified

status of raw materials or products held in stock. The organisation shall be able to pro-

vide the estimate volume of palm oil / palm kernel oil content (separate categories) in

the RSPO certified oil palm product and keep an up to date record of the volume pur-

chased (input) and claimed (output) over a period of twelve (12) months

Note : Record Keeping

Note for auditor : Records for the previous license period and the new license period needs to be verified

c. For IP module, the mill shall record and balance all receipts of RSPO certified FFB and

deliveries of RSPO certified CPO and PK on a real-time basis

d. For MB module, the mill :

shall record and balance all receipts of RSPO certified FFB and deliveries of RSPO

certified CPO and PK on a real-time basis and / or three-monthly basis

All volumes of certified CPO & PK that are delivered are deducted from the material

accounting system according to conversion ratios stated by RSPO

The mill can only deliver Mass Balance sales from a positive stock. Positive stock

can include product ordered for delivery within three (3) months. However, a mill is

allowed to sell short. (i.e. product can be sold before it is in stock).

Note : D.5.1 & E.5.1

Findings:

The documents has been updated regularly following the changes of mill opera-tion condition. The records of implementation such kind document are keep main-tained and updated. The mill assigned Mr Imran as person having overall responsibility for and author-ity over the im-plementation of these requirements and compliance with all appli-cable requirements. As stated on Decree Letter No.03/ST-MM/BAS/III/2020 dated 2 March 2020. The letter have included description of responsibility and authority such as Supply chain, traceability and calculation mass balance Assistant. The mill has established procedure for maintain accurate, complete, up-to-date and accessible records and reports covering all aspects of these RSPO Supply Chain Certification Standard requirements, as stated in document and records management procedure, document No. BAS/SOP-MR/001 Rev04, issued date on April 30, 2018. As stated on document above the retention times for all records and reports must be kept in teen (10) years. The mill has record of FFB input and product produce (CSPO/CSPK) and product sold over a period of July 2019 to June 2020, as seen on material balance docu-ment such as:

Total incoming FFB are 317,553.55 MT

Total FFB processed are 317,553.55 MT

Total CSPO/CSPK produce are 53,638.98 MT of CPO and 13,321.92 MT of PK

Total CSPO/CSPK sold are 2,000 MT CSPO and 7,231.62 MT CSPK Accounting system that applied by the Mill is mass balance sheet. Based on the

Yes No N.A

NCR No :




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mass balance sheet records, delivery volume of CSPO and CSPK is in accord-ance with the actual conversion ratios and the mill not sell short of CSPO or CSPK within year of 2019. The mill has a balance account sheet within a period of 3 (three) months

3.8.13 (C) OER & KER shall be applied to provide a reliable estimate of the amount of certified CPO &

PK from the associated inputs. Mill shall determine and set their own extraction rates which

shall be based upon past experience, documented and applied consistently.

Note : Conversion Factors

Findings:

The mill have mechanism to calculate conversion factor. The mill using conver-sion factor following the guidance as provided by RSPO to a reliable estimate for the amount of certified output available from the associated inputs. For license period (July 2019 to June 2020), the average of OER is 19.85% and KER is 4.93%.

The OER/KER have been checked periodically to ensure accuracy against actual performance or industry average as appropriate. The last updated was on June 2020 as seen on records of daily production report.

Yes No N.A

NCR No :

3.8.14 (C) Extraction rates shall be updated periodically to ensure accuracy againt actual performance

or industry average if appropriate.

Note : Conversion Factors

Findings:

The conversion rate has been following the actual performance.

Yes No N.A

NCR No :

3.8.15 (C) For IP module, The mill shall assure and verify through documented procedures and record

keeping that the RSPO certified oil palm product is kept separated from non- certified oil

palm product including during transport and storage to strive for 100% separation.

Note : Processing

Findings:

N/A, due to the mill use Mass Balance for its supply chain model.

Yes No N.A

NCR No :

3.8.16 (C) a. Shipping Announcement in the RSPO IT platform shall be carried out by the mill when

RSPO Certified product are sold as certified to refineries, chrusher & traders not more

than three months after dispatch with the dispatch with the dispatch date being the Bill

of Lading or the dispatch document date

b. Remove: RSPO certified volumes sold under different scheme or as conventional, or in

case of underproduction, loss or damage shall be removed in the RSPO IT Platform.

Note : Registration of Transaction




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Findings:

Mill is a supply chain actor who sell RSPO certified products (CSPO & CSPK). During periode of July 2019 to June 2020 (valid license period), the mill has sold CSPO amount of 2,000 MT and CSPK amount of 7,231.62 MT to buyers, i.e.: PT. SARI DUMAI SEJATI. All of RSPO certified products that sold by the mill has reg-istered as a shipping announcement in the RSPO IT platform. Shipping an-nouncement has made in accordance procedure of “Dispatch CPO & PK (SOP-MKT-02 Rev.03, effective date on 15 January 2018) Based on the reviewed documents of shipping announcement, there is confirma-tion from buyer conducted in the RSPO IT platform. There is evidence that vol-ume sold under other scheme and conventional from certified volume.

Yes No N.A

NCR No :

3.8.17 (C) The mill shall only make claims regarding the production of RSPO certified oil that are in

compliance with the RSPO Rules on Market Communications and Claims.

Note : Claims

Findings:

During the audit, the mill has no make a claim.

Yes No N.A

NCR No :

Principle 4 : Respect Community and Human Right and Deliver Benefits

4.1 The unit of certification respects human rights, which includes respecting the rights of

Human Rights Defenders

4.1.1 (C) A policy to respect human rights, including prohibiting retaliation against Human Rights

Defenders (HRD), is documented and communicated to all levels of the workforce, opera-

tions, supply chain and local communities and prohibits intimidation and harassment by

the unit of certification and contracted services, including contracted security forces

Findings:

PT Barumun Agro Sentosa has a policy of protection of human rights, that was published on February 1, 2018 which is that management is committed to protect-ing and respecting human rights include personal human rights, political rights, rights in the field of law, legal eguity rights, property rights and social culture right. Protection of human rights policy has been disseminated to all levels of employ-ees, for example to 118 workers of Aek of Sigala-gala POM on 28 August 2019, to 267 workers of Aek Sigala-Gala Estate on 23 April 2020, to 249 workers of Aek Barumun Estate workers on 6 May 2020, to 176 workers of Aek Kulim Estate on 21 March 2020, and to 33 local communities including FFB suppliers in Gunung Manaon Village on 18 March 2020

Yes No N.A

NCR No :

4.1.2 The unit of certification does not instigate violence or use any form of harassment, includ-

ing the use of mercenaries and paramilitaries in their operations

Findings:

The company is not use mercenaries and paramilitaries in the operations. Based on interview with labor union of PT Barumun Agro Sentosa, workers, and local community, company is doing well with its operational system without any Human Rights violence. No reported cases or interviews reveal used of violence by/in the unit of certification

Yes No N.A

NCR No :




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4.2 There is a mutually agreed and documented system for dealing with complaints and griev-

ances, which is implemented and accepted by all affected parties.

4.2.1 (C) The mutually agreed system, open to all affected parties, resolves disputes in an effective,

timely and appropriate manner, ensuring anonymity of complainants, HRD, community

spokespersons and whistleblowers, where requested, without risk of reprisal or intimida-

tion and follows the RSPO policy on respect for HRD

Findings:

Company has procedure of complaints and grievances No. BAS/SOP-MR/006 Rev. 04 (communication for internal and external), applicable since April, 30, 2018. The procedure contains mechanism to handle complaints, including pro-cess to overcome the complaints on each division. The procedure has been in-formed to workers and a copy was placed in every security office and estate gate. Worker grievances and complaint accepted and manage by Labor Union. Re-garding worker facility, they communicate their complaint directly to the Division Head. According to interview result with labor union, no complaints regarding workers’ right since last year received. In the SOP mentioned that workers and or external parties can complaint through suggestion boxes available in division offices, estate offices, mill office, and plac-es easily accessed by external parties. The suggestion box also as the effective mechanism for anonymity. Document controller will check suggestion box every week and then will be evaluated by Manager and Senior Manager. Every grievance will be responded at least 7 days after the complaint received. Based on document check to company correspondence with external community for period 2019 to 2020 and interview with stakeholder in Ujung Gading Jae Vil-lage, Gunung Manaon Village and Ujung Gading Julu Village, there is no specific letter regarding dissatisfaction and complaint. PR has fully open communication with stakeholder that make them could communicate anything directly to the PR.

Yes No N.A

NCR No :

4.2.2 Procedures are in place to ensure that the system is understood by the affected parties, in-

cluding by illiterate parties.

Findings:

According information from labor union and human resource department, also in-terview with contractor and local community, no illiterate parties in work area of PT Barumun Agro Sentosa. All workers even have handphones and can sign work agreement, and not found illiterate workers during interview. As for local community, if they have any complaints they will inform Village Head to be fol-lowed up by the company. Latest socialization of SOP of Communication and Grievance Mechanism was conducted to 178 workers in Aek Kulim Estate dated 16 June 2020.

Yes No N.A

NCR No :

4.2.3 The unit of certification keeps parties to a grievance informed of its progress, including

against agreed timeframe and the outcome is available and communicated to relevant

stakeholders.

Findings:

Based on document check, grievances received are from workers but all com-plaints about house renovation requests. For example: - Floor renovation request from worker Murahman Haloho (SKU Harvest Div III

of Aek Sigala-gala Estate) dated 10 June 2020. The renovation has been giv-en 3 days after the complaint received.

- Roof renovation request from worker Enudi Mendrofa (Casual Worker

Yes No N.A

NCR No :




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Maintenance Div IV Aek Barumun Estate) dated 27 June 2020. The renova-tion has been given 1 day after the complaint received.

- House renovation request from worker Mespan (Aek Kulim Estate) dated 18 June 2020. The renovation has been given 1 day after the complaint re-ceived.

4.2.4 The conflict resolution mechanism includes the option of access to independent legal and

technical advice, the ability for complainants to choose individuals or groups to support

them and/or act as observers, as well as the option of a third-party mediator.

Note: Auditor need to interview with the grievance parties to determine the process.

Findings:

In complaint mechanism published on notice boards in front of Estate and POM office and also in all contracts or agreements, SOP and PKB (Collective Agree-ment) in clause Conflict Resolution, it is informed that conflict can be resolved by involving law officers or as law regulation into court. No conflict occurred within last 1 year in PT Barumun Agro Sentosa.

Yes No N.A

NCR No :

4.3 The unit of certification contributes to local sustainable development as agreed by local

communities.

4.3.1 Contributions to community development that are based on the results of consultation with

local communities are demonstrated.

Findings:

Company has made contibutions to local sustainable development as agreed by local communities as follow: - Educative Toys for Kindergarten Harapan Bangsa in Gunung Manaon Vil-

lage on 15 January 2020 amount Rp 5,400,000 - Fund aid for palm oil replanting for Agriculture Agency of Paluta District on

29 January 2020 amount Rp 5,000,000 - Fund aid for MTQ Islamic Event in Ujung Batu Subdistrict on 8 Febaruary

2020 amount Rp 2,500,000 - Fund aid for Youth Organization in Ujung Batu Subdistrict on 8 February

2020 amount Rp 2,000,000 - Fund aid for MTQ Islamic Event in Simangambat Subdistrict on 8 February

2020 amount Rp 2,500,000 - Fund aid for football tournament in Simangambat Subdistrict on 25 February

2020 amount Rp 1,000,000 - Road maintenance amount Rp 15,120,000 for Ujung Batu Subdistrict on 18

February 2020 - Office equipment for Sectoral police Padang Bolak amount Rp 4,350,000 by

giving CPU and Printer on 6 March 2020 - House renovation for Mauli Harahap (poor person) in Tobing Tinggi Village

amount Rp 2,310,000 on 23 March 2020 - Mosque development in Ujung Batu Village amount Rp 16,800,000 on 23

March 2020 - Fund aid for MTQ Islamic Distrtict Event in Simangambat Subdistrict on 16

March 2020 amount Rp 3,000,000 - Fund aid for MTQ Islamic Distrtict Event in Torgamba Subdistrict on 4

March 2020 amount Rp 2,000,000 - Fund aid for Volley Tournament in Ujung Batu Village and Tobing Tinggi Vil-

lage on 16 March 2020 amount Rp 1,000,000 - Fund aid for NGO Pemuda Pancasila in Padang Lawas Utara District on 28

March 2020 amount Rp 2,000,000 - Fund aid for NGO Dewan Pimpinan Cabang in Ujung Batu Subdistrict on 28

Yes No N.A

NCR No :




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March 2020 amount Rp 1,000,000 - Fund aid for mosque development in Huta Raja Village on 29 April 2020

amount Rp 4,620,000 - Mosque equipment fund aid in Sipaho Village on 30 April 2020 amount Rp

2,000,000 - Fund aid for city garden development in Torgamba Subdistrict Office

amount Rp 2,000,000 on 20 May 2020.

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

users without their free, prior and informed consent.

4.4.1 (C) Documents showing legal ownership or lease, or authorised use of customary land author-

ised by customary landowners through a Free, Prior and Informed Consent (FPIC) process.

Documents related to the history of land tenure and the actual legal or customary use of the

land are available.

Findings:

The company has document showing the actual legal use of the land in the office. The entire document completed and available in the office. The company has record of legal ownerhip such as:

Land use right (HGU) for previous scope of audit

Decree letter from Minister of Local Affairs No. SK.67/HGU/DA/86 dated 2 December 1986 as large as ± 12,641.50 Ha located on Barumun Ten-gah Sub District, South Tapanuli District, North Sumatera Province

Land use certificate No.1 as large as 12.319 Ha located on Jambu To-nang village, Barumun Tengah Sub District, South Tapanuli District, North Sumatera Province valid until December 31, 2021.

Total HGU : 12,391 Ha

Land use right (HGU) for extension scope

Decree letter from Minister of Agraria No. 7/HGU/KEM-ATR/BPN/I/2020 dated January 20, 2020 as large as 1,476.197 Ha located on Jambu To-nang, Marlaung, Mananti, Manaretua and Ujung Batu Jae Village, Ujung Batu Sub-district, Padang Utara District, North Sumatera Province.

Land use certificate No.243 as large as 1,1117.812 Ha Jambu Tonang, Marlaung, Mananti, Manaretua and Ujung Batu Jae Village, Ujung Batu Sub-district, Padang Utara District, North Sumatera Province. Valid until January 30, 2055.

Land use certificate No.244 as large as 350.186 Ha Jambu Tonang, Mar-laung, Mananti, Manaretua and Ujung Batu Jae Village, Ujung Batu Sub-district, Padang Utara District, North Sumatera Province. Valid until Jan-uary 30, 2055.

Land use certificate No.245 as large as 4,622 Ha Jambu Tonang, Mar-laung, Mananti, Manaretua and Ujung Batu Jae Village, Ujung Batu Sub-district, Padang Utara District, North Sumatera Province. Valid until Jan-uary 30, 2055.

Land use certificate No.246 as large as 3,577 Ha Jambu Tonang, Mar-laung, Mananti, Manaretua and Ujung Batu Jae Village, Ujung Batu Sub-district, Padang Utara District, North Sumatera Province. Valid until Jan-uary 30, 2055

Total HGU : 1,476.197 Ha

So, the grand total of HGU during this audit (Re-certification) are 13,795.197

Ha

Plantation Bussiness Permit (IUP) for previous scope of audit

Head Decree of Integrated Licensing Services Agency and Capital In-

Yes No N.A

NCR No :




of 124



vestment of Padang Lawas Utara District No.503/0005/IU-P/BPPPTPM/2015 dated 2 November 2015 about Plantation Permit of PT Barumun Agro Sentosa as large as 12.319 Ha and mill capacity i.e. 60 ton/hours

Plantation Bussiness Permit (IUP) for extension scope

Head Decree of Integrated Licensing Services Agency and Capital In-vestment of Padang Lawas Utara District No.503/0002/IU-P/DPMPPTSP/IV/2018 dated April 6, 2018 about Plantation Permit of PT Barumun Agro Sentosa as large as 12.319 Ha and 1,500 Ha with mill capacity 60 ton/hours

4.4.2 Copies of documents evidencing agreement-making processes and negotiated agreements

detailing the FPIC process are available and include :

a) Evidence that a plan has been developed through consultation and discussion in good

faith with all affected groups in the communities, with particular assurance that vulner-

able, minorities’ and gender groups are consulted, and that information has been pro-

vided to all affected groups, including information on the steps that are taken to involve

them in decision making

b) Evidence that the unit of certification has respected communities’ decisions to give or

withhold their consent to the operation at the time that these decisions were taken

c) Evidence that the legal, economic, environmental and social implications of permitting

operations on their land have been understood and accepted by affected communities,

including the implications for the legal status of their land at the expiry of the unit of

certification’s title, concession or lease on the land

Findings:

Based on the prevailing laws and regulations in Indonesia, every granting of land use rights must be preceded by the granting of a location permit. At this stage, the company is given the opportunity to identify land rights that may exist in the area. After this done, the company apply for a HGU permit. In this submission process (there is a small area of 2.8 Ha of community arable in Blok N2, Division V - Aek Sigalagala Estate on behalf Mr. Sairin), the authorities (BPN) will carry out field observations including regional mapping (cadastral). This map will serve as an initial reference for the BPN team to re-conduct field observations and ensure the condition of the area. BPN will form a special team called Panitia B. The team will carry out a thorough identification of the area be-ing requested, including the possibility of other rights in the area. The results of field observations made by the team will be recorded in the Minutes of Committee B.

The Minutes are recommendations submitted to decision makers (BPN) to grant / reject requests for HGU granting. If the results of committee B's minutes recom-mend granting of rights, then BPN RI will issue a Decree on Granting Rights. Af-ter obtaining the decree, the company is also required to register the land to issue a title certificate as proof of legal ownership. In the land certificate document there are information about the certificate number, area location, validity period, area size, information on area boundaries and a map. Based on a review of legal documents (decrees and HGU certificates) above, it known that the operational area of the company is land controlled by the state. Even though, there is a small area of 2.8 Ha of community arable in Blok N2, Di-vision V - Aek Sigalagala Estate on behalf Mr. Sairin. Regarding this case, the company has provided compensation in accordance with the agreement of both parties. Currently, based on confirmation with Mr. Sairin and and the village head surrounding the plantation, it was noted that no more land disputes and overlap

Yes No N.A

NCR No :




of 124



with other rights (such as: HGU of other companies, customary / communal rights) between the company and the community or the others parties.

4.4.3 (C) Maps of an appropriate scale showing the extent of recognised legal, customary or user

rights are developed through participatory mapping involving affected parties (including

neighbouring communities where applicable, and relevant authorities).

Note to auditor : Actual ground verification showing the accuracy of the dispute map should be conducted

Findings:


The Minutes are recommendations submitted to decision makers (BPN) to grant / reject requests for HGU granting. If the results of committee B's minutes recom-mend granting of rights, then BPN RI will issue a Decree on Granting Rights. Af-ter obtaining the decree, the company is also required to register the land to issue a title certificate as proof of legal ownership. In the land certificate document there are information about the certificate number, area location, validity period, area size, information on area boundaries and a map. Based on a review of legal documents (decrees and HGU certificates) above, it known that the operational area of the company is land controlled by the state. Even though, there is a small area of 2.8 Ha of community arable in Blok N2, Di-vision V - Aek Sigalagala Estate on behalf Mr. Sairin. Regarding this case, the company has provided compensation in accordance with the agreement of both parties. Currently, based on confirmation with Mr. Sairin and and the village head surrounding the plantation, it was noted that no more land disputes and overlap with other rights (such as: HGU of other companies, customary / communal rights) between the company and the community or the others parties.

Yes No N.A

NCR No :

4.4.4 All relevant information is available in appropriate forms and languages, including assess-

ments of impacts, proposed benefit sharing, and legal arrangements

Findings:

Based on the prevailing laws and regulations in Indonesia, every granting of land use rights must be preceded by the granting of a location permit. At this stage, the company is given the opportunity to identify land rights that may exist in the area. After this done, the company apply for a HGU permit. In this submission process (there is a small area of 2.8 Ha of community arable in Blok N2, Division V - Aek Sigalagala Estate on behalf Mr. Sairin), the authorities (BPN) will carry out field observations including regional mapping (cadastral). This map will serve as an initial reference for the BPN team to re-conduct field

Yes No N.A

NCR No :




of 124



observations and ensure the condition of the area. BPN will form a special team called Panitia B. The team will carry out a thorough identification of the area be-ing requested, including the possibility of other rights in the area. The results of field observations made by the team will be recorded in the Minutes of Committee B.


4.4.5 (C) Evidence is available to show that communities are represented through institutions or

representatives of their own choosing, including by legal counsel if they so choose.

Findings:


The Minutes are recommendations submitted to decision makers (BPN) to grant / reject requests for HGU granting. If the results of committee B's minutes recom-mend granting of rights, then BPN RI will issue a Decree on Granting Rights. Af-ter obtaining the decree, the company is also required to register the land to issue a title certificate as proof of legal ownership. In the land certificate document there are information about the certificate number, area location, validity period, area size, information on area boundaries and a map. Based on a review of legal documents (decrees and HGU certificates) above, it known that the operational area of the company is land controlled by the state. Even though, there is a small area of 2.8 Ha of community arable in Blok N2, Di-vision V - Aek Sigalagala Estate on behalf Mr. Sairin. Regarding this case, the company has provided compensation in accordance with the agreement of both parties. Currently, based on confirmation with Mr. Sairin and and the village head

Yes No N.A

NCR No :




of 124



surrounding the plantation, it was noted that no more land disputes and overlap with other rights (such as: HGU of other companies, customary / communal rights) between the company and the community or the others parties.

4.4.6 There is evidence that implementation of agreements negotiated through FPIC is annually

reviewed in consultation with affected parties.

Note to auditor : interviews with affected parties to be conducted to verify the occurrence of the process

Findings:



Yes No N.A

NCR No :

4.5 No new plantings are established on local peoples’ land where it can be demonstrated that

there are legal, customary or user rights, without their FPIC. This is dealt with through a

documented system that enables these and other stakeholders to express their views

through their own representative institutions.

4.5.1 (C) Documents showing identification and assessment of demonstrable legal, customary and

user rights are available.

Findings:

Based on the prevailing laws and regulations in Indonesia, every granting of land use rights must be preceded by the granting of a location permit. At this stage, the company is given the opportunity to identify land rights that may exist in the area. After this done, the company apply for a HGU permit. In this submission process (there is a small area of 2.8 Ha of community arable in Blok N2, Division

Yes No N.A

NCR No :




of 124



V - Aek Sigalagala Estate on behalf Mr. Sairin), the authorities (BPN) will carry out field observations including regional mapping (cadastral). This map will serve as an initial reference for the BPN team to re-conduct field observations and ensure the condition of the area. BPN will form a special team called Panitia B. The team will carry out a thorough identification of the area be-ing requested, including the possibility of other rights in the area. The results of field observations made by the team will be recorded in the Minutes of Committee B.


4.5.2 (C) FPIC is obtained for all oil palm development through a comprehensive process, including

in particular, full respect for their legal and customary rights to the territories, lands and

resources via local communities’ own representative institutions, with all the relevant in-

formation and documents made available, with option of resourced access to independent

advice through a documented, long-term and two-way process of consultation and negotia-

tion.

Findings:

There were no new developments areas during the audit carried out by the com-pany.

Yes No N.A

NCR No :

4.5.3 Evidence is available that affected local peoples understand they have the right to say ‘no’

to operations planned on their lands before and during initial discussions, during the stage

of information gathering and associated consultations, during negotiations, and up until an

agreement with the unit of certification is signed and ratified by these local peoples. Nego-

tiated agreements should be non-coercive and entered into voluntarily and carried out prior

to new operations.

Findings:


Yes No N.A

NCR No :




of 124



4.5.4 To ensure local food and water security, as part of the FPIC process, participatory SEIA

and participatory land-use planning with local peoples, the full range of food and water

provisioning options are considered. There is transparency of the land allocation process.

Findings:


Yes No N.A

NCR No :

4.5.5 Evidence is available that the affected communities and rights holders have had the option

to access to information and advice that is independent of the project proponent, concern-

ing the legal, economic, environmental and social implications of the proposed operations

on their lands.

Findings:


Yes No N.A

NCR No :

4.5.6 Evidence is available that the communities (or their representatives) gave consent to the in-

itial planning phases of the operations prior to the issuance of a new concession or land ti-

tle to the operator.

Findings:


Yes No N.A

NCR No :

4.5.7 New lands will not be acquired for plantations and mills after 15 November 2018 as a result

of recent (2005 or later) expropriations in the national interest without consent (eminent

domain), except in cases of smallholders benefitting from agrarian reform or anti-drug pro-

grammes.

Findings:


Yes No N.A

NCR No :

4.5.8 (C) New lands are not acquired in areas inhabited by communities in voluntary isolation.

Note to auditor : There should be direct verification of above with the local communities

Findings:


Yes No N.A

NCR No :




of 124



4.6 Any negotiations concerning compensation for loss of legal, customary or user rights are

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

ties and other stakeholders to express their views through their own representative institu-

tions.

4.6.1 (C) A mutually agreed procedure for identifying legal, customary or user rights, and a proce-

dure for identifying people entitled to compensation, is in place.

Note to auditor : There should be direct verification of above with the affected parties

Findings:

There were no new developments areas during the audit carried out by the com-pany. Anyway, the company has set the procedure regarding FPIC (Free Prior and Informed Consent) No. Dok. BAS/SOP-MR/011, Revisi 001, 2018 regarding identification, calculation and compensation for the loss of legal or customary rights of the land, valid since April 30, 2018. Step 4 of the procedure mention that PR invited every farmer/land user, local community and foma leader into a meet-ing in consultating agendaregarding the lancd status. Step 4 of the procedure mention that PR invited every farmer/land user, local community and foma leader into a meeting in consultating agenda regarding the lancd status. The procedure take into account Ownership and access to land as describe on step 7 “Data col-lecting and verification”, in general, not specifically differentiate gender, migrant and/or traditional communal ownership. Land ownership validity and reliability base on the data verification. Moreover, the company also have the SOP for Conflict Resolution No. Dok. SOP-LGL-03 dated 1 2011. The procedure is drafted and designated as a technical guide which is used to ensure that the decision, or action steps in the process of land acquisition for the benefit of the palm oil industry is done properly and cor-rectly in accordance with the provisions and the applicable legislation, the princi-ples and criteria of the RSPO, HCVF, and FPIC particularly for land which is re-lated to communal/customary land. Based on a review of legal documents (decrees and HGU certificates) above, it known that the operational area of the company is land controlled by the state. Even though, there is a small area of 2.8 Ha of community arable in Blok N2, Di-vision V - Aek Sigalagala Estate on behalf Mr. Sairin. Regarding this case, the company has provided compensation in accordance with the agreement of both parties. Currently, based on confirmation with Mr. Sairin and and the village head surrounding the plantation, it was noted that no more land disputes and overlap with other rights (such as: HGU of other companies, customary / communal rights) between the company and the community or the others parties.

Yes No N.A

NCR No :

4.6.2 (C) A mutually agreed procedure for calculating and distributing fair and gender-equal com-

pensation (monetary or otherwise) is established and implemented, monitored and evaluat-

ed in a participatory way, and corrective actions taken as a result of this evaluation.

Findings:

There were no new developments areas during the audit carried out by the com-pany. Anyway, the company has set the procedure regarding FPIC (Free Prior and Informed Consent) No. Dok. BAS/SOP-MR/011, Revisi 001, 2018 regarding identification, calculation and compensation for the loss of legal or customary rights of the land, valid since April 30, 2018. Step 4 of the procedure mention that PR invited every farmer/land user, local community and foma leader into a meet-ing in consultating agendaregarding the lancd status. Step 4 of the procedure mention that PR invited every farmer/land user, local community and foma leader into a meeting in consultating agenda regarding the lancd status. The procedure

Yes No N.A

NCR No :




of 124



take into account Ownership and access to land as describe on step 7 “Data col-lecting and verification”, in general, not specifically differentiate gender, migrant and/or traditional communal ownership. Land ownership validity and reliability base on the data verification. Moreover, the company also have the SOP for Conflict Resolution No. Dok. SOP-LGL-03 dated 1 2011. The procedure is drafted and designated as a technical guide which is used to ensure that the decision, or action steps in the process of land acquisition for the benefit of the palm oil industry is done properly and cor-rectly in accordance with the provisions and the applicable legislation, the princi-ples and criteria of the RSPO, HCVF, and FPIC particularly for land which is re-lated to communal/customary land. Based on a review of legal documents (decrees and HGU certificates) above, it known that the operational area of the company is land controlled by the state. Even though, there is a small area of 2.8 Ha of community arable in Blok N2, Di-vision V - Aek Sigalagala Estate on behalf Mr. Sairin. Regarding this case, the company has provided compensation in accordance with the agreement of both parties. Currently, based on confirmation with Mr. Sairin and and the village head surrounding the plantation, it was noted that no more land disputes and overlap with other rights (such as: HGU of other companies, customary / communal rights) between the company and the community or the others parties.

4.6.3 Evidence is available that equal opportunities are provided to both men and women to hold

land titles for small holdings.

Findings:

There were no new developments areas during the audit carried out by the com-pany. Anyway, the company has set the procedure regarding FPIC (Free Prior and Informed Consent) No. Dok. BAS/SOP-MR/011, Revisi 001, 2018 regarding identification, calculation and compensation for the loss of legal or customary rights of the land, valid since April 30, 2018. Step 4 of the procedure mention that PR invited every farmer/land user, local community and foma leader into a meet-ing in consultating agendaregarding the lancd status. Step 4 of the procedure mention that PR invited every farmer/land user, local community and foma leader into a meeting in consultating agenda regarding the lancd status. The procedure take into account Ownership and access to land as describe on step 7 “Data col-lecting and verification”, in general, not specifically differentiate gender, migrant and/or traditional communal ownership. Land ownership validity and reliability base on the data verification. Moreover, the company also have the SOP for Con-flict Resolution No. Dok. SOP-LGL-03 dated 1 2011. The procedure is drafted and designated as a technical guide which is used to ensure that the decision, or action steps in the process of land acquisition for the benefit of the palm oil indus-try is done properly and correctly in accordance with the provisions and the appli-cable legislation, the principles and criteria of the RSPO, HCVF, and FPIC partic-ularly for land which is related to communal/customary land. Based on a review of legal documents (decrees and HGU certificates) above, it known that the operational area of the company is land controlled by the state. Even though, there is a small area of 2.8 Ha of community arable in Blok N2, Di-vision V - Aek Sigalagala Estate on behalf Mr. Sairin. Regarding this case, the company has provided compensation in accordance with the agreement of both parties. Currently, based on confirmation with Mr. Sairin and and the village head surrounding the plantation, it was noted that no more land disputes and overlap with other rights (such as: HGU of other companies, customary / communal rights) between the company and the community or the others parties.

Yes No N.A

NCR No :




of 124



4.6.4 The process and outcomes of any negotiated agreements, compensation and payments are

documented, with evidence of the participation of affected parties, and made publicly avail-

able to them.

Findings:


Yes No N.A

NCR No :

4.7 Where it can be demonstrated that local peoples have legal, customary or user rights, they

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

their FPIC and negotiated agreements.

4.7.1 (C) A mutually agreed procedure for identifying people entitled to compensation is in place.

Findings:

There were no new developments areas during the audit carried out by the com-pany. Anyway, the company has set the procedure regarding FPIC (Free Prior and Informed Consent) No. Dok. BAS/SOP-MR/011, Revisi 001, 2018 regarding identification, calculation and compensation for the loss of legal or customary rights of the land, valid since April 30, 2018. Step 4 of the procedure mention that PR invited every farmer/land user, local community and foma leader into a meet-ing in consultating agendaregarding the lancd status. Step 4 of the procedure mention that PR invited every farmer/land user, local community and foma leader into a meeting in consultating agenda regarding the lancd status. The procedure take into account Ownership and access to land as describe on step 7 “Data col-lecting and verification”, in general, not specifically differentiate gender, migrant and/or traditional communal ownership. Land ownership validity and reliability base on the data verification. Moreover, the company also have the SOP for Conflict Resolution No. Dok. SOP-LGL-03 dated 1 2011. The procedure is drafted and designated as a technical

Yes No N.A

NCR No :




of 124



guide which is used to ensure that the decision, or action steps in the process of land acquisition for the benefit of the palm oil industry is done properly and cor-rectly in accordance with the provisions and the applicable legislation, the princi-ples and criteria of the RSPO, HCVF, and FPIC particularly for land which is re-lated to communal/customary land. Based on a review of legal documents (decrees and HGU certificates) above, it known that the operational area of the company is land controlled by the state. Even though, there is a small area of 2.8 Ha of community arable in Blok N2, Di-vision V - Aek Sigalagala Estate on behalf Mr. Sairin. Regarding this case, the company has provided compensation in accordance with the agreement of both parties. Currently, based on confirmation with Mr. Sairin and and the village head surrounding the plantation, it was noted that no more land disputes and overlap with other rights (such as: HGU of other companies, customary / communal rights) between the company and the community or the others parties.

4.7.2 (C) A mutually agreed procedure for calculating and distributing fair compensation (monetary

or otherwise) is in place and documented and made available to affected parties.

Note to auditor : There should be direct verification of above with the affected parties

Findings:


Yes No N.A

NCR No :

4.7.3 Communities that have lost access and rights to land for plantation expansion are given

opportunities to benefit from plantation development.

Findings:

There were no new developments areas during the audit carried out by the com-

Yes No




of 124



pany. Anyway, the company has set the procedure regarding FPIC (Free Prior and Informed Consent) No. Dok. BAS/SOP-MR/011, Revisi 001, 2018 regarding identification, calculation and compensation for the loss of legal or customary rights of the land, valid since April 30, 2018. Step 4 of the procedure mention that PR invited every farmer/land user, local community and foma leader into a meet-ing in consultating agendaregarding the lancd status. Step 4 of the procedure mention that PR invited every farmer/land user, local community and foma leader into a meeting in consultating agenda regarding the lancd status. The procedure take into account Ownership and access to land as describe on step 7 “Data col-lecting and verification”, in general, not specifically differentiate gender, migrant and/or traditional communal ownership. Land ownership validity and reliability base on the data verification. Moreover, the company also have the SOP for Conflict Resolution No. Dok. SOP-LGL-03 dated 1 2011. The procedure is drafted and designated as a technical guide which is used to ensure that the decision, or action steps in the process of land acquisition for the benefit of the palm oil industry is done properly and cor-rectly in accordance with the provisions and the applicable legislation, the princi-ples and criteria of the RSPO, HCVF, and FPIC particularly for land which is re-lated to communal/customary land. Based on a review of legal documents (decrees and HGU certificates) above, it known that the operational area of the company is land controlled by the state. Even though, there is a small area of 2.8 Ha of community arable in Blok N2, Di-vision V - Aek Sigalagala Estate on behalf Mr. Sairin. Regarding this case, the company has provided compensation in accordance with the agreement of both parties. Currently, based on confirmation with Mr. Sairin and and the village head surrounding the plantation, it was noted that no more land disputes and overlap with other rights (such as: HGU of other companies, customary / communal rights) between the company and the community or the others parties.

N.A NCR No :

4.8 The right to use the land is demonstrated and is not legitimately contested by local people

who can demonstrate that they have legal, customary, or user rights.

4.8.1 Where there are or have been disputes, proof of legal acquisition of title and evidence that

mutually agreed compensation has been made to all people who held legal, customary, or

user rights at the time of acquisition is available and provided to parties to a dispute, and

that any compensation was accepted following a documented process of FPIC.

Note to auditor :

Due diligence should be conducted on the management to provide evidence that there has been no historical or current land dispute

There should be direct verification of above with the affected parties

Findings:

There were no new developments areas during the audit carried out by the com-pany. Anyway, the company has set the procedure regarding FPIC (Free Prior and Informed Consent) No. Dok. BAS/SOP-MR/011, Revisi 001, 2018 regarding identification, calculation and compensation for the loss of legal or customary rights of the land, valid since April 30, 2018. Step 4 of the procedure mention that PR invited every farmer/land user, local community and foma leader into a meet-ing in consultating agendaregarding the lancd status. Step 4 of the procedure mention that PR invited every farmer/land user, local community and foma leader into a meeting in consultating agenda regarding the lancd status. The procedure take into account Ownership and access to land as describe on step 7 “Data col-lecting and verification”, in general, not specifically differentiate gender, migrant and/or traditional communal ownership. Land ownership validity and reliability base on the data verification.

Yes No N.A

NCR No :




of 124



Moreover, the company also have the SOP for Conflict Resolution No. Dok. SOP-LGL-03 dated 1 2011. The procedure is drafted and designated as a technical guide which is used to ensure that the decision, or action steps in the process of land acquisition for the benefit of the palm oil industry is done properly and cor-rectly in accordance with the provisions and the applicable legislation, the princi-ples and criteria of the RSPO, HCVF, and FPIC particularly for land which is re-lated to communal/customary land. Based on a review of legal documents (decrees and HGU certificates) above, it known that the operational area of the company is land controlled by the state. Even though, there is a small area of 2.8 Ha of community arable in Blok N2, Di-vision V - Aek Sigalagala Estate on behalf Mr. Sairin. Regarding this case, the company has provided compensation in accordance with the agreement of both parties. Currently, based on confirmation with Mr. Sairin and and the village head surrounding the plantation, it was noted that no more land disputes and overlap with other rights (such as: HGU of other companies, customary / communal rights) between the company and the community or the others parties.

4.8.2 (C) Land conflict is not present in the area of the unit of certification. Where land conflict ex-

ists, acceptable conflict resolution processes (see Criteria 4.2 and 4.6) are implemented

and accepted by the parties involved. In the case of newly acquired plantations, the unit of

certification addresses any unresolved conflict through appropriate conflict resolution

mechanisms.

Findings:


Yes No N.A

NCR No :




of 124



4.8.3 Where there is evidence of acquisition through dispossession or forced abandonment of

customary and user rights prior to the current operations and there remain parties with

demonstrable customary and land use rights, these claims will be settled using the relevant

requirements (Indicators 4.4.2, 4.4.3 and 4.4.4).

Findings:


Yes No N.A

NCR No :

4.8.4 For any conflict or dispute over the land, the extent of the disputed area is mapped out in a

participatory way with involvement of affected parties (including neighbouring communi-

ties where applicable).

Note to auditor : Actual ground verification showing the accuracy of the dispute map should be conducted

Findings:

There were no new developments areas during the audit carried out by the com-pany. Anyway, the company has set the procedure regarding FPIC (Free Prior and Informed Consent) No. Dok. BAS/SOP-MR/011, Revisi 001, 2018 regarding identification, calculation and compensation for the loss of legal or customary rights of the land, valid since April 30, 2018. Step 4 of the procedure mention that PR invited every farmer/land user, local community and foma leader into a meet-ing in consultating agendaregarding the lancd status. Step 4 of the procedure mention that PR invited every farmer/land user, local community and foma leader into a meeting in consultating agenda regarding the lancd status. The procedure take into account Ownership and access to land as describe on step 7 “Data col-lecting and verification”, in general, not specifically differentiate gender, migrant

Yes No N.A

NCR No :




of 124



and/or traditional communal ownership. Land ownership validity and reliability base on the data verification. Moreover, the company also have the SOP for Conflict Resolution No. Dok. SOP-LGL-03 dated 1 2011. The procedure is drafted and designated as a technical guide which is used to ensure that the decision, or action steps in the process of land acquisition for the benefit of the palm oil industry is done properly and cor-rectly in accordance with the provisions and the applicable legislation, the princi-ples and criteria of the RSPO, HCVF, and FPIC particularly for land which is re-lated to communal/customary land. Based on a review of legal documents (decrees and HGU certificates) above, it known that the operational area of the company is land controlled by the state. Even though, there is a small area of 2.8 Ha of community arable in Blok N2, Di-vision V - Aek Sigalagala Estate on behalf Mr. Sairin. Regarding this case, the company has provided compensation in accordance with the agreement of both parties. Currently, based on confirmation with Mr. Sai-rin and and the village head surrounding the plantation, it was noted that no more land disputes and overlap with other rights (such as: HGU of other companies, customary / communal rights) between the company and the community or the others parties.

Principle 5 : Support Smallholder Inclusion

5.1 The unit of certification deals fairly and transparently with all smallholders (Independent

and Scheme) and other local businesses.

5.1.1 Current and previous period prices paid for FFB are publicly available and accessible by

smallholders

Findings:

Current and previous FFB price are announced on notice board on entry gate of Aek Sigala Gala POM. The company saves the record of FFB price given to PT Mega Agung Pratama (FFB collector from communities and Aek Raso growers) and Cooperation PSMS and PBSM. The latest price shown is Rp 1,400/kg for FFB from communities and Rp 1,480/kg for FFB for Aek Raso growers. For FFB from cooperation is Rp 1,420/kg. The price is valid since 9 July 2020 up to current audit date.The price is given by mill general affair team to FFB suppliers via whatsapp or online message for quick information delivery. And the current price is also available on the notice board of weighing bridge in POM. The information is given by notice board and Whatsapp text message. Usually suppliers will ask POM or General Affair Team about the price. Contractors are aware and according to announcement, the price announced is same as in-voiced.

Yes No N.A

NCR No :

5.1.2 (C) Evidence is available that the unit of certification regularly explains the FFB pricing to

smallholders

Findings:

As mentioned in FFB Sell-Purchase Agreement to all FFB suppliers Clause Pric-ing mentioned that price per kg FFB decided by Aek Sigala Gala POM via Pur-chasing Department based on market price of CPO and Kernel and the price can change due to price change of CPO and Kernel stated by Plantation Agency of North Sumatera Province. Price per kg FFB given by supplier counted as OER

Yes No N.A

NCR No :




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and KER visually by FFB quality sorting result. The price will be subjected for tax 10%. There is evidence of price information everyday, for example: the latest price shown is Rp 1,400/kg for FFB from communities and Rp 1,480/kg for FFB for Aek Raso Farmers. For FFB from cooperation is Rp 1,420/kg. The price is valid since 9 July 2020 up to current audit date, as seen in formal letter to PT Barumun Agro Sentosa Manager No. 052/DIR/BAS/TBS/VII/2020 from Head Office of PT BAS in Medan city .The price is given by mill general affair team to FFB suppliers via whatsapp or online message for quick information delivery. And the current price is also available on the notice board of weighing bridge in POM. The price stated is put on notice board and whatsapp message.

5.1.3 (C) Fair pricing, including premium pricing, when applicable, is agreed with smallholders in the

supply base and documented

Findings:

As seen in FFB Sell-Purchase Agreement Clause 4 with all FFB suppliers, the price is determined by company (PT BAS) in accordance with market price and refers to price stated by Plantation Agency of North Sumatera Province based on FFB extraction rate. Agreement between PT BAS and suppliers in year 2019-2020 as follow: - PT Mega Agung Bersama as FFB agent or collector for 111 independent

growers for total area 302 ha with agreement no. 001/BAS/SP-TBS/I/2020 dated 1 January 2020 until 31 December 2020.

- KUD Produsen Sukses Makmur Satahi (Cooperation PSMS) with 79 mem-bers for total area 301 ha with agreement no. 001/FFB-BAS/MDN/V/2019 dated 28 May 2019 until 27 May 2029.

- KUD Produsen Borkat Sahata Maju (Cooperation PBSM) with total area 1,100 ha, agreement no. 001/FFB-BAS/MDN-KPBSM/VI/2020 for period 29 June 2020 until 29 June 2030.

The price has been agreed due to the condition has been stated in FFB Sell-Purchase Agreement signed by suppliers. No premium price due to the FFB re-ceived categorized as non-certified FFB to be processed as non certified palm oil and kernel. No complaint received by POM or PT BAS about FFB pricing. Interview with community during stakeholder consultation, they also informed no complaint giv-en to company due to FFB pricing

Yes No N.A

NCR No :

5.1.4 (C) Evidence is available that all parties, including women and independent representative or-

ganisations assisting smallholders where requested, are involved in decision-making pro-

cesses and understand the contracts. These include those involving finance, loans/credits,

and repayments through FFB price reductions for replanting and or other support mecha-

nisms where applicable

Findings:

FFB suppliers have mutual agreements with PT Barumun Agro Sentosa but not to independent growers. All suppliers collect FFB from independent growers which has been listed by suppliers but all transaction made are just sell and buy pro-cess. Suppliers buy and pay at the same day the FFB to growers without waiting the payment from PT Barumun Agro Sentosa.

Yes No N.A

NCR No :

5.1.5 Contracts are fair, legal and transparent and have an agreed timeframe




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Findings:

PT BAS has agreement for FFB sell-purchase signed by both parties as follow: - PT Mega Agung Bersama (PT MAG) as FFB agent or collector for 111 inde-

pendent growers for total area 302 ha with agreement no. 001/BAS/SP-TBS/I/2020 dated 1 January 2020 until 31 December 2020.

- KUD Produsen Sukses Makmur Satahi (Cooperation PSMS) with 79 mem-bers for total area 301 ha with agreement no. 001/FFB-BAS/MDN/V/2019 dated 28 May 2019 until 27 May 2029.

- KUD Produsen Borkat Sahata Maju (Cooperation PBSM) with total area 1,100 ha, agreement no. 001/FFB-BAS/MDN-KPBSM/VI/2020 for period 29 June 2020 until 29 June 2030. Both parties have the original copy of agree-ment.

Yes No N.A

NCR No :

5.1.6 (C) Agreed payments are made in a timely manner and receipts specifying price, weight, de-

ductions and amount paid are given

Findings:

As seen in agreements, the payment made by cash to PT MAG and Cooperation at least 1 day after the invoice and supporting documents received by POM. The deduction applied is tax PPN 10% and POM only accepts FFB that can pass sort-ing line. Payment record sample for Cooperation PBSM dated 14 July 2020 with accepted date 10-12 July 2020 total 62,110 kg FFB with price Rp 1,420 per kg, deducted with Tax 22 Rp 440,981, total paid Rp 87,755,219. The document available for payment records are cash receipt note signed by Cooperation PBSM, report of FFB purchasing July 2020, vehicle entry evidence and weighing records and sorting result. Payment record sample for Cooperation PSMS dated 14 July 2020 with accepted date 12 July 2020 total 14,430 kg FFB with price Rp 1,420 per kg, deducted with Tax 22 Rp 51,227, total paid Rp 20,439,373. The document available for payment records are cash receipt note signed by Cooperation PSMS, report of FFB pur-chasing July 2020, vehicle entry evidence and weighing records and sorting re-sult.

Yes No N.A

NCR No :

5.1.7 Weighing equipment is verified by an independent third party on a regular basis (this can

be government)

Findings:

There is procedure no. BAS/SOP-PKS/012 Rev 00 dated 1 November 2019 about Calibration Internal, External and Terra. Based on the SOP, the schedule for verification or calibration for weighing equipment by external has to be con-ducted 1 time in a year.

AEK SIGALA GALA POM

Calibration of Avery Weight-Tronix/E 1205/SN: 104350337 with verifica-tion No. 510/070/2020 dated 30 January 2020 valid until 30 January 2021 by Technical Team of Meteorology Sibolga City, acknowledged by Trading and Indrustrial Agency Head of Padang Lawas Utara District (Verifier Ramli Aman Siregar and Effendi Dalimunthe).

Calibration of Avery Weight-Tronix/E 1205/SN: 053940339 with verifica-tion No. 510/069/2020 dated 30 January 2020 valid until 30 January 2021 by Technical Team of Meteorology Sibolga City, acknowledged by Trading and Indrustrial Agency Head of Padang Lawas Utara District (Verifier Ramli Aman Siregar and Effendi Dalimunthe).

Aek Kulim Estate Verification or fertilizer wheighing equipment Brand TANITA for capacity 2000

Yes No N.A

NCR No :




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grams, using Peer Wheigh Brand Nhon Hoa for capacity 60 Kg on 29 February 2020 with Verification No. 530/338/2020 by Technical Team of Meteorology of Sibolga City Division Legal Meteorology Head, valid until 28 February 2021, acknowledged by Trading and Indrustrial Agency Head of Padang Lawas Utara District. (For MOP, Dolomite, Urea and CIRP).

Aek Barumun Verification or fertilizer wheighing equipment Brand FIVE GOATS for capacity 10,000 grams, using Peer Wheigh Brand Idodacin for capacity 50,000 grams on 6 April 2019 with Verification No. 530/272/2019 by Trading and Indrustrial Agency Head of Padang Lawas Utara District, valid until June 2020. (For MOP, Urea Do-lomite, Urea, Rock Phospate and Borate)

Aek Sigala Gala Estate Verification or fertilizer wheighing equipment Brand TANITA for capacity 2,000 grams, using Peer Wheigh Brand FIVE GOAT for capacity 20,000 grams on 11 jAnuary 2020 with Verification No. 530/260/2019 by Trading and Indrustrial Agen-cy Head of Padang Lawas Utara District, valid until 10 July 2020. (For MOP, Do-lomite, Urea, Rock CIRP, NPK)

5.1.8 The unit of certification supports Independent Smallholders with certification, where appli-

cable, ensuring mutual agreements between the unit of certification and the smallholders

on who runs the internal control system (ICS), who holds the certificates, and who holds

and sells the certified material

Findings:

PT BAS has agreement with Cooperation PSMS as smallholder partner of PT BAS POM to supply FFB. There is decree from Regent of Padang Lawas Utara No. 180.1268/K/2019 dated 27 August 2019 about Determination of Farmer Can-didates and Prospective Plasma Land for Partnership Pattern between Coopera-tion Produsen Sukses Makmur Satahi from Gunung Manaon Village UB and PT BAS (Penetapan Calon Petani Peserta dan Calon Lahan Plasma Pola Kemitraan Antara Koperasi Produsen Sukses Makmur Satahi Desa Gunung Manaon UB dengan PT BAS). Meanwhile, the cooperation is not prepared to join RSPO certi-fication scheme, so this indicator is not applicable.

Yes No N.A

NCR No :

5.1.9 (C) The unit of certification has a grievance mechanism for smallholders and all grievances

raised are dealt with in a timely manner

Findings:

In all agreements with FFB suppliers, there is clause about conflict, which men-tioned that if any conflict or misunderstanding between both parties, the conflict will be resolved deliberately, and if the resolution has not been found then will be resolved in court office in Padang Sidempuan. No grievances reported yet to mill. Based on interview with third party supplier in village during stakeholder consultation, no complaint ever given to PT BAS. And they aware about conflict resolution mechanism as stated on big notice board in front of mill office.

Yes No N.A

NCR No :

5.2 The unit of certification supports improved livelihoods of smallholders and their inclusion

in sustainable palm oil value chains

5.2.1 The unit of certification consults with interested smallholders (irrespective of type) includ-

ing women or other partners in their supply base to assess their needs for support to im-

prove their livelihoods and their interest in RSPO certification




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Findings:

Based on meeting record on 18 March 2020 with Koperasi PSMS attended by 33 members of Koperasi PSMS, there agenda also include the awareness about RSPO P&C for smallholders. The needs for support identified:

- For the operational cost for KUD member to pay basic fee Rp 710,000 and administration cost Rp 290,000 or total Rp 1,000,000 per member. The members proposed the company (PT BAS) to give them loan and pay-ment by instalment every month from FFB transaction.

- The operational hour to receive FFB from Koperasi is different with other suppliers to avoid price change and worse FFB quality, because some-times in peak season the driver has to queue more than 24 hours.

- The FFB price from PT BAS is under other POM, and if they become member of Cooperation then the price for FFB will be lower due to tax de-duction and operational cost under Koperasi.

The Cooperation PSMS has proposed a letter to PT BAS No. 13/KPSMS/GM-UB/IX/2019 dated 4 September 2019 about Honour Payment Request for Coop-eration Staff Rp 8,000,000 per month for 1 year since 1 October 2019 until 30 September 2020 and will be evaluated regularly, if the cooperation has been in-dependent financially, the honour won’t be given anymore. The payment evi-dence record for cooperation workers period June 2020 Rp 8,000,000 on 3 July 2020 by cash.

Yes No N.A

NCR No :

5.2.2 The unit of certification develops and implements livelihood improvement programmes, in-

cluding at least capacity building to enhance productivity, quality, organisational and man-

agerial competencies, and specific elements of RSPO certification (including the RSPO

Standard for Independent Smallholder)

PROCEDURAL NOTE: The RSPO is currently developing a separate standard for Independent Smallholders.

Findings:

PT BAS has conducted training for FFB suppliers/partners as follow to enhance productivity and specific elements of RSPO: - HCV awareness to local communities - SOP of Harvesting (BAS/SOP-AGR/011 Rev 03 dated 30 August 2019),

PPE use, and RSPO for Independent Smallholders on 16 June 2020 at-tended by representatives of Cooperation Produsen Sukses Makmur Satahi

Yes No N.A

NCR No :

5.2.3 Where applicable, the unit of certification provides support to smallholders to promote le-

gality of FFB production

Findings:

PT BAS has agreement with Cooperation PSMS as smallholder partner of PT BAS POM to supply FFB. There is decree from Regent of Padang Lawas Utara No. 180.1268/K/2019 dated 27 August 2019 about Determination of Farmer Can-didates and Prospective Plasma Land for Partnership Pattern between Coopera-tion Produsen Sukses Makmur Satahi from Gunung Manaon Village UB and PT BAS (Penetapan Calon Petani Peserta dan Calon Lahan Plasma Pola Kemitraan Antara Koperasi Produsen Sukses Makmur Satahi Desa Gunung Manaon UB dengan PT BAS). To support the program, PT BAS has promoted the legality of FFB production by facilitating the land legality checking by inviting National Land Agency of Padang Lawas Utara to measure and check the land of the farmers who are member of Cooperation PSMS.

Yes No N.A

NCR No :




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5.2.4 (C) Evidence exists that the unit of certification trains Scheme Smallholders on pesticide han-

dling

Findings:

The company provides chemist workers to use pesticide on Smallholders’ land. There is record of chemist work conducted by chemist workers from Aek Sigala-gala Estate period August 2019 and April 2020.

Yes No N.A

NCR No :

5.2.5 The unit of certification regularly reviews and publicly reports on the progress of the small-

holder support programme

Findings:

PT BAS has reported the FFB Sell and Purchase Agreement with Cooperation PSMS to Village Head of Gunung Manaon, Subdistrict Head of Ujung Batu, Agri-culture Agency Head of Padang Lawas Utara District, Manpower and Coopera-tion Agency of Padang Lawas Utara District and Regent of Padang Lawas Utara. There is agreement of Partnership of Palm Oil Plantation Development and Man-agement between PT BAS and Cooperation PSMS signed on 2019 for 318 ha to-tal area. The agreement period is 1 cycle of palm oil or since land clearing until 2 years before replanting.The funding instalment given by PT BAS Rp 83,017,410 for land clearing, planting, infrastructure, maintenance for Immature I, II and III, Land Ownership Cost to get Land Certificate, and interest. The cost for manage-ment of mature palm oil will be provided by cooperation members. There is man-agement fee 5% has to be paid by Cooperation PSMS from FFB purchasing. The agreement is acknowledged by Village Head of Gunung Manaon, Subdistrict Head of Ujung Batu, Agriculture Agency Head of Padang Lawas Utara District, Manpower and Cooperation Agency of Padang Lawas Utara District and Regent of Padang Lawas Utara.

Yes No N.A

NCR No :

Principle 6 : Respect Workers Rights and Conditions

6.1 Any form of discrimination is prohibited

6.1.1 (C) Publicly available non-discrimination and equal opportunity policy is implemented in such

a way to prevent discrimination based on ethnic origin, caste, national origin, religion, dis-

ability, gender, sexual orientation, gender identity, union membership, political affiliation or

age

Findings:

The company has an Equal Opportunities Policy issued June 2017 also shows the worker heterogeneity regarding religions, ethnics and races. There are worker from java, batak, nias, etc. registered as workers. Interview result with workers confirmed that there is no discrimination issue among workers. They aware the general definition of “discrimination” and they admit that they never meet discrim-ination issues since they work at PT BAS. There is no “favorite worker” issues rise among workers and supervisor. They treat equally. Commitment to equal opportunity has documented to Collective Working Agree-ments (PKB). The promotion listed in clause 14 of PKB, state that the workers who has meet the qualification or because have vacancies in higher position may be promoted. Equal treatment in working opportunity was guaranteed by compa-ny as define in decree No 009/SE/DIR/BAS/VIII/2011. Jobs Information (workers) that require candidates are domiciled / living the operational area (Estate), senior

Yes No N.A

NCR No :




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high school graduate, physically healthy. However for the staff, recruitment infor-mation and promotion held in the head office Medan. There is evidence that workers, groups including local communities does not discriminated against, and happy with the way the company is treating them. There is no evidence complaint against the organization on issues relating to discrimination. The company has implemented a policy of equal employment opportunities to gain employment and minimum age requirements worker policy. There are casual workers in Aek Barumun Estate, Aek Sigala-gala Estate and Aek Kulim Estate for work maintenance, harvest, and other works in estate. Inter-view with management, company can change the status of casual workers to be permanent workers if the workers amount for budgeting plan is not adequate and will change the status if the worker has willingness to work regularly every month and pass the test to be permanent worker

6.1.2 (C) Evidence is provided that workers and groups including local communities, women, and

migrant workers have not been discriminated against. Evidence includes migrant workers'

non-payment of recruitment fees

Findings:

Based on employee on May 2020, it was known that employee come from differ-ent background and social identity. The list of employee explain about name of employee, Place and Date of birth, date of recruitment, Employee origin, religion, education, local and non local, tribe, and position. Through interview with workers, it was confirmed that there was no discrimination on working opportunities, all workers were treated equally. Records of employ-ee’s recruitment and their contract agreement were available. In company there was no migrant worker. Based on interview result with labour union, it was known that no discrimination on workers. The company don’t treat workers in discrimina-tive way since recruitment till working in company.

Yes No N.A

NCR No :

6.1.3 The unit of certification demonstrates that recruitment selection, hiring, access to training

and promotion are based on skills, capabilities, qualities and medical fitness necessary for

the jobs available

Findings:

As seen in SOP of recruiments, all workers are recruited and promoted based on skills, capabilities, qualities and medical fitness necessary for the job. There is no recruitment as permanent workers in PT BAS for the last 1 year, but company can show recruitment records from previous years. The evidences to show this compliance were application letters, copy of ID card, copy of Family Registration Card, Copies of Education Certificates Interview Re-sult, Medical Check Result and official decree from management as the result.

Yes No N.A

NCR No :

6.1.4 Pregnancy testing is not conducted as a discriminatory measure and is only permissible

when it is legally mandated. Alternative equivalent employment is offered for pregnant

women

Findings:

Company has policy to not employ pregnant women into work related to chemical hazardous materials as it will danger the pregnancy process. As alternative, company will change the job of the worker into non-hazardous chemical related during pregnancy and breastfeeding period. Pregnancy test is not conducted for all job requirement but company facilitate the test in the clinic for women who wants to voluntarily check themselves in the clinic.

Yes No N.A

NCR No :




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6.1.5 (C) A gender committee is in place specifically to raise awareness, identify and address issues

of concern, as well as opportunities and improvements for women

Findings:

Gender Committee in PT Barumun Agro Sentosa period 2018-2020 :

Leader: Vivi Hariani (Administration Clerk)

Development Div: Linda K Siagian

Research and Development: Mawarni Ritonga

Finance and Administration: Ida Kristina

Members from POM, Aek Kulim Estate , Aek Sigala-Gala Estate and Aek Ba-

rumun Estate: Elmina Lubis, Masrita Kaloko, Nurmiati Harahap, Rawati Pangari-buan, Rita Marya, Sutari, Sari Gusta Siagian, Hotriado Turnip, Fatimah Yani, Salida Tri Palusi, Ragina Pasaribu and Hotlan Naibaho. Latest meeting made was on 20 March 2020 attended by 22 female workers in Aek Sigala-gala POM and Estate to discuss Kartini Day, Gender Committee Structure, Mentrual Leave and Maternity Leave, and gender equality. Working Plan of Gender Committee in 2020 are: Regular Meeting, Socialization about Gender Committee, socialization about narcotics, event for female workers, and skill training. Other activities from gender committee were socialization about nar-cotics made on 19 May 2020 attended by 184 workers in Aek Kulim Estate and socialization about HIV/AIDSmade on 10 June 2020 attended by 162 workers in Aek Kulim Estate.

Yes No N.A

NCR No :

6.1.6 There is evidence of equal pay for the same work scope

Findings:

Company has system to assure that equal pay for the same work scope. Wage Scale for POM and Estate under PT Pasifik Agro sentosa, by Human Resource Department in Jakarta Office. The wage structure for lowest status work levels: non-staff or monthly permanent worker or PB1 and PB2 minimum wage Rp 1,275,000 to Rp 2,975,000 (1A-IF), until Senior General Manager (Level VE-VF). For compliance with government regulation in PT BAS, company has decrees re-garding wage as follow: - Decree of Director PT Pasific Agro Sentosa dated 12 December 2019 about

Wage for Permanent Daily Worker and Casual Daily Worker in PT BAS year 2020, in accordance with Decree of Governor of Sumatera Utara for Mini-mum Wage in Padang Lawas Utara District year 2020 No. 561/5556/2019 dated 11 November 2019 for Rp 2,767,784 per month, then daily wage for workers in PT BAS is Rp 110,712 per day (Rp 2,767,800/25 days) for casual daily worker and Rp 92,260 per day (Rp 2,767,800/30 days) for Permanent Daily Worker.

- Decree of Governor of Sumatera Utara for Minimum Wage in Padang Lawas Utara District year 2020 No. 188.44/727/KPTS/2019 dated 20 November 2019 for Rp 2,767,784 per month

- Decree of PT BAS Director No. 008/SK-BHL/BAS-DIR/XII/2019 dated 13 De-cember 2019 about Wage for Casual Daily Worker (BHL), per 1 January 2020 raised from Rp 102,029 per working day to Rp 110,712 per working day.

- Decree of PT BAS Director No. 007/SK-SKU/BAS-DIR/XII/2019 dated 13 December 2019 about Wage for Permanent Daily Worker (SKU), per 1 Jan-uary 2020 raised from Rp 85,024 per working day to Rp 92,260 per working day.

Yes No N.A

NCR No :

6.2 Pay and conditions for staff and workers and for contract workers always meet at least le-

gal or industry minimum standards and are sufficient to provide decent living wages (DLW)




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6.2.1 (C) Applicable labour laws, union and/or other collective agreements and documentation of

pay and conditions are available to the workers in national languages and explained to

them in language they understand

Findings:

Employment arrangements in the company are permanent workers, casual daily workers, and outsourced or daily workers from contractors known as third parties workers. Newest PKB or collective agreement is available for period 2020 to 2022 has been signed by Manpower Agency Head of North Sumatera Province and appli-cable for all internal workers of PT BAS started 15 June 2020. The PKB is pub-lished in Indonesian language. All internal workers are given PKB pocket book and there is record of PKB dissemination receipt from labor unions. There is working agreement with casual daily workers No. 002/BAS/PKHL/IV/2020 signed on 1 April 2020 and valid until 30 June 2020. In the agreement informed the kind of work and work place, working day and work-ing hour, salary based on District Minimum Wage of Padang Lawas Utara in daily rate Rp 110,712, work regulation, and signatures. The agreement signed by 270 casual daily workers in Aek Kulim Estate, 226 casual daily workers in Aek Sigala-gala Estate, and 318 casual daily workers of Aek Barumun Estate. The agree-ment also has been reported to Manpower Agency of Padang Lawas Utara Dis-trict. Example of salary payment slips checked for compliance in accordance with government regulation as follow: - Slip salary June 2020 for SKU or Permanent Daily Worker name Perdinan

Pane as Mechanic Guard Shift II got basic salary Rp 2,767,800, overtime Rp 5,173,705. There is also BPJS allowance and deduction, also labor un-ion fee and rice allowance.

- Slip salary June 2020 for SKU or Permanent Daily Worker name Jefri Si-ahaan as Mechanic Boiler in mill got basic salary Rp 2,767,800, overtime Rp 2,540,734. There is also BPJS allowance and deduction, also labor un-ion fee and rice allowance.

- Slip salary May 2020 for Casual Daily Worker name Slamet Riadi as office boy get basic salary Rp 2,214,240 (20 working days). There is also BPJS allowance and deduction, also labor union fee. In June 2020, he got basic salary Rp 2,767,800 for 25 working days.

All third parties workers have agreement with their companies about pay and condition. PT BAS has to ensure the pay and condition is in accordance with Law No 13 year 2003 as stated in agreement between PT BAS and contractors. Then company will evaluate the pay and condition requirements to their contractor us-ing a compliance checklist form. Then contractors will provide copies of: work agreements with their workers, ID card, BPJS labor and health evidence, at-tendant list of their workers, and salary payment records. Evidence of salary record in June 2020 for PT IVAN MOTOR workers as FFB transporter, from 139 workers, lowest paid 618,175 for 2 working days, while worker of contractor SUYANTO lowest paid 1,850,000 for total 5 working days. This is indicated that the worker gets more than casual daily rate as regulated by government per day. Based on interview with management unit, labor unions and workers, it is known that it’s prohibited to bring family members to help working. Everyone who works in company area must have clear work agreement with the company or contrac-

Yes No N.A

NCR No :




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tors. Based on document checking of work attendant list and salary payment records period January to June 2020 to casual daily workers which directly employed by PT BAS, no record of working more than 20 days for 3 months. For all daily workers from contractors, as seen in their attendant list record period January to June 2020, no record of working more than 20 days for 3 months.

6.2.2 (C) Employment contracts and related documents detailing payments and conditions of em-

ployment (e.g. regular working hours, deductions, overtime, sick leave, holiday entitlement,

maternity leave, reasons for dismissal, period of notice, etc. in compliance with national le-

gal requirements) and payroll documents give accurate information on compensation for all

work performed, including work done by family members

Findings:

Conditions about working hours, deductions, overtime, sick leaves, holiday enti-tlement, maternity leave, reasons for dismissal, period of notice, etc are men-tioned in PKB (Collective Bargaining Agreement) period 2020-2022. Meanwhile for casual daily workers, the conditions are stated in their working agreement. The agreement is written in Indonesian language and all workers has received the copies of the agreement. In the PKB and working agreement, it’s also mentioned about the minimum wage and allowance provided by the company for workers such as THR allowance, in-surance benefits and overtime fee, premi fee, and leave allowance. Based on in-terview with management unit, labor unions and workers, it is known that it’s pro-hibited to bring family members to help working. Everyone who works in company area must have clear work agreement with the company or contractors. Accord-ing to salary slips record for the last 2 months and interview with permanent workers, the salary payment is consistent with the contract and law and no issues regarding salary and benefits.

Yes No N.A

NCR No :

6.2.3 (C) There is evidence of legal compliance for regular working hours, deductions, overtime,

sickness, holiday entitlement, maternity leave, reasons for dismissal, period of notice and

other legal labour requirements

Findings:

As seen in salary slips of workers, all deductions and overtime fee are available in the slips clearly. Deduction are for BPJS Labor and Health fee that must be paid by workers and company, then for tax, personal loan, labor union fee and cooperation member fee and loan (if any). Overtime documents are available for each worker, which before doing overtime the worker must sign a form called Overtime Sheet and approved by their supervisor. Maternity leave are given for female workers who at least 90 days before estimated birth date and 90 days af-ter giving birth or for breastfeeding period. Human resource division has records of maternity leave forms filled by worker.

Yes No N.A

NCR No :

6.2.4 (C) The unit of certification provides adequate housing, sanitation facilities, water supplies,

medical, educational and welfare amenities to national standards or above, where no such

public facilities are available or accessible. National laws, or in their absence the ILO Guid-

ance on Workers’ Housing Recommendation No. 115, are used. In the case of acquisitions

of non-certified units, a plan is developed detailing the upgrade of infrastructure. A reason-

able time (5 years) is allowed to upgrade the infrastructure

Findings:

PT BAS has provide adequate housing, electricity, clean water supplies medical

Yes No




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service, children education and welfare amenities. The company provides the housing and clean water for employee and electricity shall be paid by the em-ployee. Company also provides the housing and facilities for employee, such as elementary school, church and mosque, sport facility (Football and badminton), and daycare, policlinic, schools (Kindergarten up to High School), School bus (8 units), ambulance (2 units) and free electricity by genset. Based on interview with workers, they said that the house are in good condition, good sanitation, electricity access is available, easy to get medicine in the clinic or using BPJS Health to referred hospital, nearby schools for children in kinder-garten, primary, elementary and high schools. All housings using artesian well for water requirements and buy mineral water from nearby kiosk. Water for washing and bathing is good and no health issue from using it. They said if they need ren-ovation for the house such as due to broken door or roof or ceilings, they will re-port to technic department and the renovation will be done within a week

N.A NCR No :

6.2.5 The unit of certification makes efforts to improve workers' access to adequate, sufficient

and affordable food

Findings:

Since PT BAS is located in remote area and location to nearby villages takes 30 minutes to 2 hours, company provides all workers with rice allowance, which cover the worker and worker’s dependents. This allowance clearly mentions on PKB (Clause 24), which states: a. Worker 15 kg; b. Spouse, 9 kg; c. Children, 7.5 kg each, covering 2 children maximum. The implementation of this agreements verified with monthly salary records (pay-slips), which consists information of rice allowance. Company also allowed resi-dents to open little shop providing basic needs in housing facilities. Interview re-sult with workers found that they have no difficulty to access basic need shops. Some times, local traders come to housing facilities selling family basic needs. They stated that the prices applied is normal prices, the same price with shops at village surround estates.

Yes No N.A

NCR No :

6.2.6 A DLW is paid to all workers, including those on piece rate/quotas, for whom the calcula-

tion is based on achievable quotas during regular work hours.

PROCEDURAL NOTE: The RSPO Labour Task Force will prepare guidance on the DLW imple-mentation, including details on how to calculate a DLW, expected for 2019. The RSPO Secretariat will endeavour to carry out DLW country benchmarks for palm oil producing countries in which RSPO members operate and for which no Global Living Wage Coalition (GLWC) benchmarks ex-ist

Findings:

There is no RSPO endorsed living wage country benchmark available yet for Pa-dang Lawas Utara District, especially for areas surround PT BAS. Company ap-plied minimum wage based on agreement with regional Labor Union which is higher than sectoral district minimum wage decreed by Governor of North Su-matera Province. Decree of Governor of Sumatera Utara for Minimum Wage in Padang Lawas Utara District year 2020 No. 188.44/727/KPTS/2019 dated 20 No-vember 2019 for Rp 2,767,784 per month. To follow the regulation, company has 2 decrees related to salary for workers as follow: - Decree of PT BAS Director No. 008/SK-BHL/BAS-DIR/XII/2019 dated 13

December 2019 about Wage for Casual Daily Worker (BHL), per 1 January 2020 raised from Rp 102,029 per working day to Rp 110,712 per working

Yes No N.A

NCR No :




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day. - Decree of PT BAS Director No. 007/SK-SKU/BAS-DIR/XII/2019 dated 13

December 2019 about Wage for Permanent Daily Worker (SKU), per 1 January 2020 raised from Rp 85,024 per working day to Rp 92,260 per working day. Based on interview with workers and human resource depart-ment, minimum wage received by SKU worker per month is Rp 2,767,784 because 30 days as stated is included public holidays and Sundays, and SKU workers work 25 days per month.

Company showed evidences of assessment on prevailing wages and in-kind benefits which has made it official, signed by Director of PT BAS for year 2020, which has comply with the PKB which refer to minimum wage decreed by gover-nor (which has formulated by Dewan Pengupahan of Sumatera Utara). The wage components which has been considered in calculation are:

a) Fix income (comply with Minimum Wage) b) Holiday Benefit or THR or Tunjangan Hari Raya c) Fix Allowance d) Rice Allowance e) Premi and Overtime f) Access to Electricity g) Water h) Medical Care i) Insurance contribution (BPJS) j) Retention Bonus

6.2.7 Permanent, full-time employment is used for all core work performed by the unit of certifi-

cation. Casual, temporary and day labour is limited to jobs that are temporary or seasonal

Findings:

PT Barumun Agro Sentosa is member of GAPKI (Gabungan Pengusaha Kelapa Sawit Indonesia/ Indonesian Palm Oil Business Association). PT BAS refers to GAPKI Decree No. SK/002/PPG/II/2013 dated 8 February 2013 about Flow of Ac-tivities in the Implementation of Work in the Palm Oil Plantation Business Sector which in accordance with Law No. 13 Year 2003 about Manpower Act 64 to 66, Regulation of Ministry of Manpower and Transmigration No 19 year 2012 Act 3 point 2c and Act 4 about Job Contracting Requirements, and GAPKI Meeting Re-sult dated 18 January 2013, the core activities are harvesting and mill operation to process FFB to CPO. The core activities must be done by internal workers (permanent or temporary workers) and cannot be given to contractors or third par-ties. Other work activities such as business location selection, nursery, planting, maintenance, FFB transport and CPO selling can be contracted and done by third parties workers. PT Barumun Agro Sentosa (Aek Kulim Estate, Aek Sigala-gala Estate, and Aek Barumun Estate), still employ harvesters as casual daily workers. Some of the harvesters who are casual workers start to join to work since year 2014. While harvesting is the core job in estate and company does not employ them only for

seasonal or peak season. This condition was raised as non conformity No:

RSPO03217.

For third party workers only for FFB transport and PT BAS has 2 mutual agree-ments with 2 contractors for FFB transport. All workers from contractors are daily casual workers and registered under the contractors.

Yes No N.A

NCR No :

RSPO03217

(Non-Critical)

6.3 The unit of certification respects the rights of all personnel to form and join trade unions of

their choice and to bargain collectively. Where the right to freedom of association and col-




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lective bargaining are restricted under law, the employer facilitates parallel means of inde-

pendent and free association and bargaining for all such personnel

6.3.1 (C) A published statement recognising freedom of association and right to collective bargain-

ing in national languages is available and is explained to all workers in languages that they

understand, and is demonstrably implemented

Findings:

Company keeps and maintain their policy regarding their respect the rights of all personnel to form and join trade unions. The freedom workers to have a worker union and/or associations has also stated in Collective Agreement (PKB) 15 June 2020 until 15 June 2022 acknowledged by Manpower Agency of Padang Lawas Utara District, in Clause 5 about company recognition to labor union as organiza-tion of workers and partner in industrial relation. The structure of Labor Union Serikat Karyawan Perkebunan (SKP) PT Barumun Agro Sentosa as follow:

Chairman: Haikal

Vice Chairman I: Jenni Purba

Vice Chairman II: Librandi Purba

Secretary: Tondi S Hasibuan

Finance: Swaji

Yes No N.A

NCR No :

6.3.2 Minutes of meetings between the unit of certification with trade unions or workers repre-

sentatives, who are freely elected, are documented in national languages and made availa-

ble upon request

Findings:

Latest activity of SKP PT BAS as follow: - Minute of meeting of SKP PT BAS Aek Kulim Estate dated 11 July 2020

discussing Independence Day preparation event, family administration of workers, bonus plan 2020, attended by 14 representatives from SKP and workers.

- PKB Socialization on 11 July 2020 attended by 13 workers in Aek Sigala-gala Estate.

Yes No N.A

NCR No :

6.3.3 Management does not interfere with the formation or operation of registered unions/ labour

organisations or associations, or other freely elected representatives for all workers includ-

ing migrant and contract workers

Findings:

Company provides the facilities i.e. meeting room for SKP-BAS (Barumun Agro Sentosa Worker Union) in employee housing in Aek Kulim Estate. It has been registered in the Manpower and Transmigration Agency, Padang Lawas Utara District with Number. BP.01 / SKP-PT BAS DKKUKM/IV/2018 on April 11, 2018 and already have article of association and by laws (AD / ART). Based on interview result to SKP, they confirmed that PT BAS management doesn’t interfere the formation and or operation of registered union’s activities.

Yes No N.A

NCR No :

6.4 Children are not employed or exploited

6.4.1 A formal policy for the protection of children, including prohibition of child labour and re-

mediation is in place, and included into service contracts and supplier agreements

Findings:

PT BAS still hold policy of minimum age worker requirements. It also stated in PKB clause 10 about the recruitment, state that the workers at least are 18 years

Yes No N.A




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old. Evidence of implementation the policy is: 1. Sign board of announcement about the company only accept the worker

at least 18 years old or was married, and also ban of bringing children under 18 years old for worker still applied at some points. The sign board was posted in front of office worker union, estate office and mill office.

2. Checks to list of employee of PT BAS June 2020 there is no finding the employee under 18 years old. No worker age under 18 years old found

NCR No :

6.4.2 (C) There is evidence that minimum age requirements are met. Personnel files show that all

workers are above the national minimum age or above company policy minimum age,

whichever is higher. There is a documented age screening verification procedure

Findings:

In company policy mentioned that all workers must age above 18 years old. No workers found under age 18 years old during the audit, as seen in documents list of workers including third parties workers and as interviewed with workers and la-bor unions. All contractors in PT BAS have provided ID card copies of all their workers to ver-ify the age above 18 years old. For example PT Ivan Motor Sejahtera for FFB Transport, from total 138 workers per June 2020, the youngest worker name Jul-ius Zega with birth date 20 December 2001.

Yes No N.A

NCR No :

6.4.3 (C) Young persons may be employed only for non-hazardous work, with protective restrictions

in place for that work

Findings:

No workers above 15 and below 18 years old available in company during the audit.

Yes No N.A

NCR No :

6.4.4 The unit of certification demonstrates communication about its ‘no child labour’ policy and

the negative effects of child labour, and promotes child protection to supervisors and other

key staff, smallholders, FFB suppliers and communities where workers live

Findings:

There is sign board of announcement about the company only accept the worker at least 18 years old or was married, and also ban of bringing children under 18 years old for worker still applied at some points. The sign board was posted in front of office worker union, estate office and mill office. Workers are given morn-ing brief every morning before work and sometimes foremen or division assistant with workers will read the sign board together.

Yes No N.A

NCR No :

6.5 There is no harassment or abuse in the workplace, and reproductive rights are protected

6.5.1 (C) A policy to prevent sexual and all other forms of harassment and violence is implemented

and communicated to all levels of the workforce

Findings:

PT BAS maintains their commitment regarding prevention for sexual harassment and violence, valid from August 26, 2011. The policy has communicated to all level of worker. Direct interview with maintenance and harvester workers found that they acknowledged regarding gender and prevention of sexual harassments policy. The workers aware any kind of sexual harassment and gender based vio-lation, and know to whom they has to report if any cases happen. No case of

Yes No N.A

NCR No :




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sexual and all other forms of harassment and violence being reported

6.5.2 (C) A policy to protect the reproductive rights of all, especially of women, is implemented and

communicated to all levels of the workforce

Findings:

Company has policy for female regarding their reproductive rights. The company gives the leave for female when they got period and pregnancy (give birth and maternity). The leave day for female’s period is one day every month, approved by manager. The leave day for pregnancy/give birth is 3 months (90 days). The reproductive rights policy is stated in PKB Clause 23 about Maternity Leave and Menstrual Leave. The PKB has been accepted by all internal workers. Based on interview with management unit and chemist workers, they aware about the reproductive rights policy, they will tell their supervisor if any of them is preg-nant to avoid hazardous chemical related work. There are sample records of maternity leave for worker names as follow: - Purnama Liana (clerk of Aek Barumun Estate) dated 11 May 2020 until 24

June 2020 (45 days) as recommendation from midwife of Aek Sigala-gala Clinic.

- Hotriado (cooperation clerk of Aek Sigala-gala Estate) dated 2 June 2020 un-til 16 July 2020 (45 days) as recommendation from midwife of Aek Sigala-gala Clinic.

- Tiurma Sianipar (high school teacher of Aek Sigala-gala Estate) dated 19 February 2020 until 3 April 2020 (45 days) as recommendation from midwife of Aek Sigala-gala Clinic.

Yes No N.A

NCR No :

6.5.3 Management has assessed the needs of new mothers, in consultation with the new moth-

ers, and actions are taken to address the needs that have been identified

Findings:

The record of assessment needs of new mothers for worker name Purnama Lia-na has been conducted by supervisor and the needs identified are immunization time in August 2020 as scheduled by midwife. The record of assessment needs of new mothers for worker name Hotriado has been conducted by supervisor and the needs identified are immunization time in September 2020 as scheduled by midwife. The record of assessment needs of new mothers for worker name Tiurma Sianipar has been conducted by supervisor and the needs identified are immun-ization time in May 2020 as scheduled by midwife. From all records of assess-ment needs the new mother workers informed that they get enough time for breastfeeding and child care facility is also available.

Yes No N.A

NCR No :

6.5.4 Grievance mechanism, which respects anonymity and protects complainants where re-

quested, is established, implemented and communicated to all levels of the workforce

Findings:

The company has procedure of complaints and grievances No. BAS/SOP-MR/006 Rev. 04 (communication for internal and external), applicable since April, 30, 2018. The procedure contains mechanism to handle complaints, including process to overcome the complaints on each division. The procedure has been informed to workers and a copy was placed in every security office and estate gate. In the SOP mentioned that workers and or external parties can complaint through

Yes No N.A

NCR No :




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suggestion boxes available in division offices, estate offices, mill office, and plac-es easily accessed by external parties. The suggestion box also as the effective mechanism for anonymity. Document controller will check suggestion box every week and then will be evaluated by Manager and Senior Manager. Meanwhile, for grievance related to sexual harassment or violence can also be reported to Gender Committee confidentially. Then gender committee will report the case to labor union and then to analyse the problem. Then labor union will re-port to Manager of PT BAS to decide the sanction and or decisive action for per-petrator in accordance with applicable regulations. Every grievance will be responded at least 7 days after the complaint received.

6.6 No forms of forced or trafficked labour are used

6.6.1 (C) All work is voluntary and following are prohibited :

• Retention of identity documents or passports

• Payment of recruitment fees

• Contract substitution

• Involuntary overtime

• Lack of freedom of workers to resign

• Penalty for termination of employment

• Debt bondage

• Withholding of wages

Findings:

Company did not employ migrant workers. Checking against worker who works on mill and estate them all Indonesian people. Most of worker are residents of communities around the company. All internal workers (permanent and casual workers) are voluntarily employed. All workers have freedom to terminate em-ployment without penalty given reasonable notice. All workers including casual workers, are given a copy of their signed employment contracts. No penalties given to casual workers and or third parties workers if they want to terminate the contract. Based on interview with internal workers and contractors of FFB transport and al-so labor unions, no case occurs related to involuntarily overtime, debt bondage, withholding of wages, lack of freedom to resign, and or payment of recruitment fees. According to SOP of Recruitment, internal worker who wants to terminate can propose to their supervisor and human resource division by giving resigna-tion letter and in accordance with company regulation.

Yes No N.A

NCR No :

6.6.2 (C) Where temporary or migrant workers are employed, a specific labour policy and proce-

dures are established and implemented

Findings:

Company did not employ migrant workers. Checking against worker who works on mill and estate them all Indonesian people. Most of worker are residents of communities around the company. All casual workers signed agreement with PT BAS management. All rights of the casual workers are mentioned in the agreement including job title, working period and time, salary (refers to highest minimum wage regulation) and allowance (THR and premi).

Yes No N.A

NCR No :

6.7 The unit of certification ensures that the working environment under its control is safe and

without undue risk to health

6.7.1 (C) The responsible person(s) for H&S is identified. There are records of regular meetings be-




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tween the responsible person(s) and workers. Concerns of all parties about health, safety

and welfare are discussed at these meetings, and any issues raised are recorded

Note: Auditors to interview those who attended the meeting to confirm the meeting was held and that issues were raised.

Findings:

The unit of certification has a Committee for OHS namely Panitia Pembina Keselamatan dan Kesehatan Kerja (P2K3). The P2K3 is formed based on statu-tory regulation, Permenaker No. PER.04/MEN/1987. The P2K3 of the unit of cer-tification has approved by head of manpower agency of Sumatera Utara through decree no. 97-7/DTK/SU/VII/2019, dated September 2019. The P2K3 has re-sponsible to implement of the OHS plan and monitor of its effectiveness. The P2K3 conducts regular monthly meeting as required by regulation. The last meeting has conducted on June 2020. Records of minute meeting and atten-cance list are available. The meeting was attended by the members of P2K3 and representative of workers. The meeting was concern on OHS issues. The meet-ing also provide recommendations to the management of the unit of certification for improving OHS performance including to reduce accident. Follows up of the meeting results are discusses and reviewed the effectiveness on the next meet-ing.

Yes No N.A

NCR No :

6.7.2 Accident and emergency procedures are in place and instructions are clearly understood

by all workers. Accident procedures are available in the appropriate language of the work-

force. Assigned operatives trained in first aid are present in both field and other operations,

and first aid equipment is available at worksites. Records of all accidents are kept and pe-

riodically reviewed

Findings:

The unit of certification has a SOP for handling accidents and emergency situa-

tions i.e: - Procedure of emergency response and preparedness on estate, document

no. BAS/SOP-SMK3/003, revision 00, date Nopember 01, 2018 - Procedure of accident and incident investigation, document no. BAS/SOP-

SMK3/002, revision 00, date Nopember 01, 2018 - Procedure of firt aid for work accident, document no. BAS/SOP-SMK3/009,

revision 00, date Nopember 01, 2018. All of procedures written in Bahasa, so can easy to all workers at all functions and levels within the unit of certification. Copies of procedures available both on estate and mill. The procedures was covers all major potential emergencies situations among others fire, hazardous materials spillage, natural disaster, and etc. Records of work accident investigation are available. There is evidence that all occurred ac-cidents was investigated to find out the causes and determine necessary action to prevent it from recurring. The records of accident reported on regular basis every 3 (three) month to authority government agency as required by the reguala-tion. Evacuation route maps can seen easily on some locations such as estate and mill offices, mess, and mill area. Assembly point for emergency situation are also available. The assembly points are maintained and free from any obstructions. The unit of certification has appoint some workers as first aid officers and pro-vides them appropriate trainings. The assigned first aid officers are: Jery Sara-gih, Sande Tua Siregar, Ater Sinaga, Viktor Manalu, Nelson Sipayung, and Hari

Yes No N.A

NCR No :




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Aritonang. Records of first aid kits checking are available and observed the first aid kits are available on some locations such as estate mill and offices, mills area (workshop, processes, lab), and carried by the harvest and sprayer foremens during field vis-it.

6.7.3 (C) Workers use appropriate personal protective equipment (PPE), which is provided free of

charge to all workers at the place of work to cover all potentially hazardous operations,

such as pesticide application, machine operations, land preparation, and harvesting. Sani-

tation facilities for those applying pesticides are available, so that workers can change out

of PPE, wash and put on their personal clothing

Findings:

Records of PPE distribution and receipt are available and observed that workers on mills area (workshop, processes), and harvest, spraying uses the appropriate PPE during field visit. The workers informed that all PPE’s are provided by the unit of certification and will replaced if damage without charge. The unit of certifi-cation has defines a PPE matrix for each processes and location. The PPE ma-trix was refer to relevant regulation, i.e. Permenaker No. 08 year of 2010. Espe-cially for spraying workers, the unit of management has provided the mask with carbon active filters. There is sufficient evidence that the workers interviewed during the field visits had received sufficient training. They are able to demonstrate their ability to do appropriate and safe work. Material safety data sheets (MSDS) are available in the field during the visit to the spraying site. The unit of certification has provided sanitations facilities for workers handling pesticides to change out the PPE, wash and put personal clothing. The facilities are designed to prevent contamination of water and land. The waste water is col-lected and reused for mixing chemicals. The facilities are equippled with neces-sary equipments, especially for female workers.

Yes No N.A

NCR No :

6.7.4 All workers are provided with medical care and covered by accident insurance. Costs in-

curred from workr elated incidents leading to injury or sickness are covered in accordance

with national law or by the unit of certification where national law does not offer protection

Findings:

There is sufficient evidence that all workers are provided with medical care that covered by BPJS. Records of BPJS membership and membership cards of work-er are available. Records of monthly BPJS payment also able to shown by the unit certification. In cases of light accidents, the workers can use the clinic facility provided by the company for free. Records of work accident handling are available at the company’s clinic. The rec-ord shows that affected worker receives appropriate medical treatment for free. The BPJS insurances can be ascertained that it is still valid, that proven for ex-ample interviewed workers stated that they had a valid BPJS membership, rec-ords of payment receipt, and certificate of BPJS membership.

Yes No N.A

NCR No :

6.7.5 Occupational injuries are recorded using Lost Time Accident (LTA) metrics

Findings:

The unit of certification has a mechanism to records the lost time accident (LTA). The accident monitored and reviewed on regular basis every month. Herewith, accident records for year 2019:

Yes No N.A




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- Estate: 3 cases, without LTA

- Mill: 1 case, 49 days of LTA Meanwhile, there is no accident recorded both on mill and estate in year 2020 (until this recertification audit).

NCR No :

Principle 7 : Protect, Conserve and Enhance Ecosystems and the Environment

7.1 IPM plans are implemented and monitored to ensure effective pestcontrol

7.1.1 (C) IPM plans are implemented and monitored to ensure effective pest control

Findings:

The unit of certification has documented IPM plan as describe on several docu-mented procedures as follows:

- Pengendalian Gulma, document no. BAS/SOP-AGR/013, rev. 03, dated Ju-ly 01, 2018.

- Sensus Hama dan Penyakit, document no. BAS/SOP-AGR/021, rev. 02, dated July 01, 2018.

- Pengendalian Trithava Rufivena, document no. BAS/SOP-AGR/027, rev. 00, dated July 01, 2018.

- Pengendalian Kumbang Tanduk, document no. BAS/SOP-AGR/028, rev. 00, dated July 01, 2018.

- Pengendalian Rayap, document no. BAS/SOP-AGR/029, rev. 00, dated Ju-ly 01, 2018.

- Pengendalian Tikus dan Burung Hantu, document no. BAS/SOP-AGR/030, rev. 00, dated July 01, 2018.

- Pengendalian Ulat Kantong document no. BAS/SOP-AGR/031, rev. 00, dated July 01, 2018.

- Pengendalian Ulat Api, document no. BAS/SOP-AGR/032, rev. 00, dated July 01, 2018.

- Pengendalian Penyakit Tandan, document no. BAS/SOP-AGR/034, rev. 00, dated July 01, 2018.

- Pengendalian Penyakit Busuk Pangkal Batang, document no. BAS/SOP-AGR/035 rev. 00, dated July 01, 2018.

- Pengendalian Penyakit Busuk Pangkal Pupus document no. BAS/SOP-AGR/036, rev. 00, dated July 01, 2018.

The above procedures has been describe for each identified potential pest and diseases. Technique uses for control pests and diseases are include cultural, bi-ological, mechanical and physical methods. Chemical only use if any uncontroller attack of pest and diseases. Tyto Alba and beneficial plant are uses for control pests. There is no evidence that the unit of certification has prophylactic use of pesticide and there is no sign of fire use for pest control. Records of pest occur-rence and control are available and maintained for example: - “Rekapitulasi serangan hama ulat pemakan ulat daun kelapa sawit 2019

and 2020”, - “Rencana dan realisasi sensus hama dan penyakit June 2020” - “Rencana dan Realissi Pengendalian Hama Terpadu June 2020”

Last training on IPM has conducted on June 23, 2020. Records of training are available such as attendance list, evaluation of training effrctiveness, and etc. The training was attended by 22 participants. Based on document review and field observation, it known that the unit of certifi-cation shows that any use of pesticides has minimised as part of Integrated Pest Management (IPM) plans that consist of early warning system (EWS)/monitoring

Yes No N.A

NCR No :




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of pest & deases attack, maintained beneficial plant (Turnera surbulata), main-tained tyto alba gupons, and pest control with use of chemical when condition of pest attack has been above threshold.

7.1.2 Species referenced in the Global Invasive Species Database and CABI.org are not to be

used in managed areas, unless plans to prevent and monitor their spread are implemented

Findings:

The unit of certification has not use species referenced in the Global Invasive Species Database and CABI.org. The sustainability persons has been aware of this.

Yes No N.A

NCR No :

7.1.3 There is no use of fire for pest control unless in exceptional circumstances, i.e. where no

other effective methods exist, and with ap prior approval of government authorities. [For NI

to define process]

Findings:

The unit of certification has policy and procedure regarding no fire use. And, there is no evidence that fire used for pest and diseases control.

Yes No N.A

NCR No :

7.2 Pesticides are used in ways that do not endanger health of workers, families, communities

or the environment

7.2.1 (C) Justification of all pesticides used is demonstrated. Selective products and application

methods that are specific to the targetpest, weed or disease are prioritised

Findings:

The unit of certification only use recommended pesticides by authorized govern-ment agency. The unit of certification has received a recommendation for the use of pesticides from manpower and cooperation micro and middle enterprise of dis-trict of Padang Lawas Utara, through recommendation letter No. 560/0921/NakerKopUKM/2019, dated July 24, 2019. All of pesticides uses by the organization has been registered and permitted by the pesticide commission. There is SOP for use selective products that are specific to target pests, weeds, or diseases and which have minimal impact on non-target species, i.e: SOP “Penggunaan Pestisida dan Pengelolaannya”, document no. BAS/SOP-AGR/024, revisi 00, dated July 01, 2018.

Yes No N.A

NCR No :

7.2.2 (C) Records of pesticides use (including active ingredients used and their LD50, area treated,

amount of activeingredients appliedper ha and number of applications) are provided

Findings:

Records of pesticides use contained in the document “Realisasi Pemakaian Ba-han Kimia Tahun 2020. The records contains detail information such as active ingredients used and their LD50, area treated, amount of active ingredients ap-plied per ha and number of applications. The unit of certification has uses of pes-ticides as follow: prima up 480 SL (ai isopropyl amina glifosat 356 g/l), Meta Pri-ma 20 WDG (ai metal metsulfuron 20%), Feromonas (ethyl 4-methyloctanoate), Furadan 3 GR (karbofuron 3%), Hamador 25 EC (lamda sihalotrin), primaxone 280 SL Plus (ai. paraquat diklorida 280 g/l), WP Saco (ai trichlorma), and Rang-gatox 50 EC (ai sipermetrin).

Yes No N.A

NCR No :




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7.2.3 (C) Any use of pesticides is minimised as part of a plan, eliminated where possible, in accord-

ance with IPM plans

Findings:

The unit of certification shows that any use of pesticides has minimised as part of Integrated Pest Management (IPM) plans that consist of early warning system (EWS)/monitoring of pest & deases attack, maintained beneficial plant (Turnera surbulata), maintained tyto alba gupons, and pest control with use of chemical when condition of pest attack has been above threshold.

Yes No N.A

NCR No :

7.2.4 There is no prophylactic use of pesticides, unless in exceptional circumstances, as identi-

fied in national best practice guidelines

Findings:

There is prophylactic use of pesticides in the unit of certification.

Yes No N.A

NCR No :

7.2.5 Pesticides that are categorised as World Health Organisation Class 1A or 1B, or that are

listed by the Stockholm or Rotterdam Conventions, and paraquat, are not used,unless in-

exceptional circumstances,as validated by a due diligence process, or when authorised by

government authorities for pest outbreaks. The due diligence refers to :

a) Judgment of the threat and verify why this is a major threat

b) Why there is no other alternative which can be used

c) Which process was applied to verify why there is no other less hazardous alternative

d) What is the process to limit the negative impacts of the application 7.2.5

e) Estimation of the timescale of the application and steps taken to limit application to

the specific outbreak.

Findings:

The unit of certification has not use pesticides that are categorised as WHO class 1A or 1B. However, pesticides with a.i paraquat still use by the company. The use of primaxone 280 SL Plus (ai. paraquat diklorida 280 g/l) has justification by the pesticide commission with register no. 01030120113991 (valid until August 22, 2021. System to monitoring pesticides use has been well established and implemented and regularly checked by the management. Each type of pesticides has an own stock card. To physically verify the stock of each pesticide can be done easily by looking at the pesticide stock card respectively.

Yes No N.A

NCR No :

7.2.6 (C) Pesticides are only handled, used or applied by persons who have completed the neces-

sary training and are always applied inaccordance with the product label. All precautions

attached to the products are properly observed, applied, and understood by workers (see

Criterion 3.6). Personnel applying pesticides must show evidence of regular updates on the

knowledge about the activity they carry out

Findings:

There is evidence that the pesticides handled, used or apply only by persons who have complete necessary training. Records of pesticides handling and used or apply are available, for example training for handling of paraquat based on Agri-culture Ministry Decree Number 24/2011. The training conducted on April 22, 2017. The training has attended by 58 participants. Based on observed and inter-

Yes No N.A

NCR No :




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view with workers of spraying, the workers able to demonstrate their knowledge and skill, they are familiar and understand hazards and risks related to the chem-ical used. The workers also use appropriate PPE provided by the unit of certifica-tion. The PPE will replaced if damaged for free.

7.2.7 (C) Storage of all pesticides is in accordance with recognised best practices

Note to auditor : refer to the safety data sheet on storage and disposal

Findings:

The unit of certification has stored facility for pesticides and other chemicals goods. Storage of the pesticides observed in accordance with best recognized practices. The pesticides are stored by type and provided with an appropriate la-bel and MSDS in accordance with applicable national regulations. The storage has adequate ventilation and illumination, equipped with spillage containment, spillage kits, first aid kits, emergency body shower and eyeswash, and etc.

Yes No N.A

NCR No :

7.2.8 All pesticide containers are properly disposed of and/or handled responsibly if used for

other purposes

Findings:

The unit of organization has implementated a mechanism to ensure that all pesti-cides containers are properly stored in the temporary hazardous waste storage (TPS LB3) and prevent its use for any purpose. All of pesticide containers are transported by licensed third party on a regular basis. There is no evidence that pesticides container are dump in site and use for other purposes.

Yes No N.A

NCR No :

7.2.9 (C) Aerial spraying of pesticides is prohibited, unless in exceptional circumstances where no

other viable alternatives are available.This requires prior government authority approval.

All relevant information is provided to affected local communities at least 48 hours prior to

application of aerial spraying

Findings:

N/A, the company has not applied the aerial spraying.

Yes No N.A

NCR No :

7.2.10 (C) Specific annual medical surveillance for pesticide operators, and documented action to

treat related health conditions, is demonstrated

Findings:

The unit of certification has a program of annual medical surveillance for all workers and specific medical surveillance for pesticides workers. The specific medical surveillance provided to all workers who handling pesticide (i.e: pesticide sprayer, chemical store workrs, etc) and will performed 2 (two) times a year. The last specific medical surveillance (cholinestrerase test) of 1st period 2020 has carried out on March 27, 2020. Records of test are available. The test results showed that there were 3 (three) workers whose results were slightly outside the normal limits. Related to these results, the 3 (three) workers were recommended to consult to doctor for further recommendations.

Yes No N.A

NCR No :




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The result of cholinesterase tests have been reported to authorities government i.e. ministry of manpower, manpower and transmigration agency of province of Sumatera Utara, and manpower and cooperation micro and middle entrepreneur of district of Padang Lawas Utara.

7.2.11 (C) No work with pesticides is undertaken by persons under the age of 18, pregnant or breast

feeding women or other people that have medical restrictions and they are offered alterna-

tive equivalent work

Findings:

The unit of certification has a documented policy for preventing persons under the age 18, pregnant or breast feeding women from handling and use or applied pesticides, as stated on “Surat Edaran” No. 003/SE/KD-BAS/X/2016 dated Octo-ber 01, 2016. The letter signed by General Manager PT BAS. There is no persons under the age 18 and pregnant or breast feeding women ap-plied or use pesticides. Pregnancy test has been carried out periodically for fe-male workers. And, the records of test are available.

Yes No N.A

NCR No :

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

sponsible manner

7.3.1 A waste management plan which includes reduction, recycling, reusing, and disposal

based on toxicity and hazardous characteristics, is documented and implemented

Findings:

All waste products an its sources of pollutions hasve been identified and docu-mented, for example:

- genset : smoke/gas - clinic: infectious waste of medicine/injection - workshop: used battery, used filter, used oil, etc - office: paper, printer toner, used tube lamps, etc - plantation: pesticide container and fertiliser sack - Etc.

Inventory of chemicals and their containers that are used are available on e.g.: document “Lembar Kegiatan Limbah Bahan Berbahaya dan Beracun. Chemicals are stored in appropriate warehouse. Meanwhile, their containers are stored in the licensed temporary store of hazardous waste with certain time before pick up by third party. The company has mecanisme how to manage their waste in both of hazardous waste, non-hazardous waste, liquid or solid waste, and organc and anorganic waste. All of hazardous waste will be stored temporary on licensed temporary hazardous waste store before transported and managed by otherparties.

Meanwhile, the solid domestic waste separated into organic and anorganic type since housuing. The company provide transporter to pick up the domestic waste to TPSA (Dinas LIngkungan Hidup). Based on field visit to landfill found that or-ganic and anorganic waste are separated. Based on field visit to employee’s housing found that waste management already implemented properly. There is no rubbish and muddy founded, bin wastes (or-ganic and anorganic) are available on each housing

Yes No N.A

NCR No :

7.3.2 Proper disposal of waste material, according to procedures that are fully understood by

workers and managers, is demonstrated




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Findings:

There is SOP Pengelolaan Limbah B3 (BAS/SOP-TAB/004, dated November 1, 2018) which explains the administration of hazardous waste management along with proper storage and disposal. The procedure was explained on how to han-dling (transport and store) hazardous waste in accordance with applicable regula-tions including administrative requirements. The company has obtained legal permit of Temporary Hazardous Waste Storage i.e. Keputusan Kepala Dinas Penanaman Modal dan Pelayanan Perizinan Terpadu kab. Padang Lawas Utara No: 503/0002/L-B3/IV/2017 regarding Permit Extension of Temporary hazardous Waste Storage of PT BAS dated 20 April 2017 valid until 30 March 2022

Yes No N.A

NCR No :

7.3.3 The unit of certification does not use open fire for waste disposal

Findings:

There is no fire used for disposed waste found during this audit.

Yes No N.A

NCR No :

7.4 Practice maintain soil fertility at, or where possible improve soil fertility to, a level that en-

sures optimsl and sustianed yield

7.4.1 Good agriculture practices, as contained in SOPs, are followed to manage soil fertility to

optimise yield and minimise environmental impacts

Findings:

The unit of certification has documented procedures for managing soil fertility, i.e.: SOP Plant Fertilizing (document no BAS/SOP-AGR/10 rev 02, dated issued July 01, 2018), SOP of POME Utilization (document no BAS/SOP-AGR/19 rev 03, dated issued July 01, 2018, and SOP EFB Application (document No. BAS/SOP-AGR/22, rev 00, dated issued July 01, 2018).

Yes No N.A

NCR No :

7.4.2 Periodic tissue and soil sampling is carried out to monitor and manage changes in soil fer-

tility and plant health

Findings:

There is record of soil analysis report dated October 10, 2014. And tissue analy-sis incorporate in the fertilizer recommendation report regularly every year. Ferti-lizer recommendation document for year 2019 and 2020 are issued by PPKS Medan.

Yes No N.A

NCR No :

7.4.3 A nutrient recycling strategy is in place, which includes the recycling of Empty Fruit

Bunches (EFB), Palm Oil MillEffluent(POME),palm residues and optimal use of inorganic

fertilisers

Findings:

The unit of certification has been implement nutrient recycling strategy by applied EFB, POME and plam residue. Records of application are available. For exam-ple:

- POME for LA: 285,517 M3 for period Jan – December 2019 and 89,068 M3 for period January - June 2020

- EFB application: 61,706,910 kg for periods January – December 2019

Yes No N.A

NCR No :




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7.4.4 Records of fertiliser inputs are maintained Palm Oil Mill Effluent (POME), palm residues and

optimal use of inorganic fertilisers

Findings: The unit of certification has maintained and monitored records of fertilizer in-put. The records of fertilizer input was linked to fertilizer recommendation. Herewith data of fertilizer input for periods January – June 2020

Fertilizer AS (kg) AK (kg) ABR (kg)

CIRP 505,600 345,500 530,052

Dolomite 517,911 456,943 564,918

Urea 529,700 395,400 568.251

MOP 671,150 460,300 731,188

Borate 27,502 21,644 27,801

NPK 41,341 31,261 105,777

Yes No N.A

NCR No :

7.5 Practices minimise and control erosion and degradation of soils

7.5.1 (C) Maps identifying marginal and fragile soils, including steep terrain, are available

Findings:

The unit of certification has maps of any fragile soils detailing their soil profile. As seen on the soil maps of Aek Kulim, Aek Sigala-gala, and Aek Barumun estates, the soil types as presented on table below:

Estate

Name

Latosol

(Ha)

Podsolik

(Ha)

Aluvial

(Ha)

Total

(Ha)

ABR 1,316 3,371 - 4,687

AS 287 4,265 90 4,642

AK 1,164 1,573 1,753 4,490

Total 2,767 9,209 1,843 13,819

As seen on the above table, the soil’s type in the organization was dominated by Podsolic type. There is no peat soil and other problem soils within the areal of the organization. Based on topographic map namely “Peta Kelas Lereng (slope), the company de-scribe slope into several types, i.e.: flat (0-8%), sloping (8-15%), choppy (15-25%), wavy (25-40%), steep-hilly (>40%) and steep (100%). The company has a management strategy for planting on slope as states on procedure namely Plant-ing Preparation (BAS/SOP-AGR/007 rev 03 dated July 01, 2018). The procedure stated on hilly area need to be developed terraces.

Yes No N.A

NCR No :

7.5.2 There is no extensive replanting of oil palm on steep terrain

Findings:

N/A, there is no new planting

Yes No N.A

NCR No :

7.5.3 There is no new planting of oil palm on steep terrain

Findings:


Yes No N.A




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NCR No :

7.6 Soil surveys and topographic information are used for site planning in the establishmenet

of new plantings, and the results are incorporated into plans and operations

7.6.1 (C) To demonstrate the long-term suitability of land for palm oil cultivation, soil maps or soil

surveys identifying marginal and fragile soils, including steep terrain, are taken into ac-

count in plans and operations

Findings:


Yes No N.A

NCR No :

7.6.2 Extensive planting on marginal and fragile soils,is avoided, or, if necessary, done in ac-

cordance with the soil management plan for best practices

Findings:


Yes No N.A

NCR No :

7.6.3 Soil surveys and topographic information guide the planning of drainage and irrigation sys-

tems,roads and other infrastructure

Findings:


Yes No N.A

NCR No :

7.7 No new planting on peat, regardless of depth after 15 November 2018 and all peatlands are

managed responsibly

7.7.1 (C) There is no new planting on peat regardless of depth after 15 November 2018 in existing

and new development areas

Findings:

N/A, based on soil maps no peat within the estates.

Yes No N.A

NCR No :

7.7.2 Areas of peat within the managed areas are inventoried, documented and reported (effec-

tive from 15 November 2018) to RSPO Secretariat.

PROCEDURAL NOTE : Maps and other documentation of peat soils are provided, prepared and shared in line with RSPO Peatland Working Group (PLWG) audit guidance (see Procedural Note for 7.7.5 below)

Findings:




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Yes No N.A

NCR No :

7.7.3 (C) Subsidence of peat is monitored, documented and minimised

Findings:


Yes No N.A

NCR No :

7.7.4 (C) A documented water and ground cover management programme is in place

Findings:


Yes No N.A

NCR No :

7.7.5 (C) For plantations planted on peat, drainability assessments are conducted following the

RSPO Drainability Assessment Procedure, or other RSPO recognised methods, at least five

years prior to replanting. The assessment result is used to set the time frame for future re-

planting, as well as for phasing out of oil palm cultivation at least 40 years, or two cycles,

whichever is greater, before reaching the natural gravity drainability limit for peat. When oil

palm is phased out, it is replaced with crops suitable for a higher water table (paludicul-

ture) or rehabilitated with natural vegetation.

PROCEDURAL NOTE: Full details of the RSPO Drainability Assessment Guidelines and related concepts and detailed actions are in the manual currently being fine-tuned/tested by PLWG. A fi-nal version should be approved by PLWG in January 2019 and will include additional guidance on the steps to be followed after the decision not to replant as well as implications for other stake-holders, smallholders, local communities and the unit of certification. It is recommended that a fur-ther twelve-month methodology trial period is proposed for all related management units (i.e. those with plantations on peat) to utilise the methodology and provide feedback to the PLWG to enable further refinement of procedure as appropriate before January 2020. Units of certification have the option to defer replanting till after the availability of the revised guidelines. Additional guidance on alternative crops and rehabilitation of natural vegetation will be provided by PLWG. PROCEDURAL NOTE: PLWG and the Smallholder Interim Group (SHIG) will collaboratively de-velop guidance for Independent Smallholders [cross links to SHIG and GHG issues]

Findings:


Yes No N.A

NCR No :

7.7.6 (C) All existing plantings on peat are managed according to the‘RSPO Manual on Best Man-

agement Practices (BMPs) for existing oil palm cultivation on peat’, version2 (2018) and as-

sociated audit guidance.




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Findings:


Yes No N.A

NCR No :

7.7.7 (C) All areas of unplanted and set-aside peatlands in the managed area (regardless of depth)

are protected as “peatland conservation areas”; new drainage, road building and power

lines by the unit of certification on peat soils is prohibited; peatlands are managed in ac-

cordance with the ‘RSPO BMPs for Management and Rehabilitation of Natural Vegetation

Associated with Oil Palm Cultivation on Peat’, version (2018) and associated audit guid-

ance.

Findings:


Yes No N.A

NCR No :

7.8 Practices maintain the quality and availability of surface and groundwater

7.8.1 (C) A water management plan is in place and implemented to promote more efficient use and

continued availability of watersources and to avoid negative impacts on other users in the

catchment. The plan addresses the following :

a. The unit of certification does not restrict access to clean water or contribute to pol-

lution of water used by communities.

b. Workers have adequate access to clean water

Findings:

The company has established water management plan and realization for 2019. On this document showed the activities carried out by estate to maintain the wa-ter quality such as riverbank enrichment, signboard installation to mark in field ar-tificial activity is not allowed into the riverbank, water level monitoring, and water quality monitoring. Record of plan implemented sighted in water managemnt re-port 2019. The company has surface water utilization permit (SIPA) No. 610/35/DIS PM PPTSP/6/XI.1/I/2018 date 9 January 2018 issued by Keputusan gubernur su-matera utara, valid until 3 years and water intake permit No. 546.2/1782/DIS PM PPTSP/5/X.3.f/XII/2018 until 546.2/1793/DIS PM PPTSP/5/X.3.f/XII/2018 for well No. 1 – 11 dated on 13 December 2018 issued by Keputusan Gubernur Su-matera Utara valid until 3 years. The company has conducted monitoring on water quality according to parameters from authority. This is stated on the EIA document especially on the environmen-tal management and monitoring matrix. Record of river water quality test up-stream and downstream with results dated on 31 October 2019 (certificate no: 09327/CLACAM) by Sucofindo accredited by KAN. Based on those river water quality tests that parameters especially pH, BOD, COD still within threshold.

Yes No N.A

NCR No :

7.8.2 (C) Water courses and wetlands are protected, including maintaining and restoring appropriate

riparian and other buffer zones in line with ‘RSPO Manual on BMPs for the management

and rehabilitation of riparian reserves’ (April 2017).

Findings:




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There is map of “Daerah Aliran Sungai PT Barumun Agro Sentosa” scale 1:50,000. Based on the map, identified DAS is 792 ha and “Embung” 12.77 ha. Some rivers was identified, i.e.:

- Aek Sipunggur - Aek Naginiang - Aek Kuning - Aek Mayo - Aek Sipungkur - Aek Sigala-gala - Aek Kulim - Aek Siumpat

The company has defined SOPs for riparian and buffer zone protection, i.e:

1. “Perlindungan, pemgelolaan, dn pemantauan Kawasan Nilai Konservasi Tinggi (HCV)”, SOP no. BAS/SOP-NKT/001, revision 01, dated July 01, 2018.

2. “Perlindungan Daerah Aliran Sungai (DAS)”, SOP no. BAS/SOP-NKT/002, revision 01, dated July 01, 2018

Based on field visit at division IV to some riparian area and buffer zone area found that the areas maintain and protected against pollution and damaged. There is evidence that the company conducted protection of riparian and buffer zone area

Yes No N.A

NCR No :

7.8.3 Mill effluent is treated to be in compliance with national regulations. Discharge quality of

mill effluent, especially Biochemical Oxygen Demand (BOD), is regularly monitored.

Findings:

Mill effluent treatment process is available in place under document Skema In-stalasi Pengolahan Limbah PT BAS (mill effluent cooling pond mixing pond land application) There is a process in place for checking and monitoring effluent discharge quali-ty, particularly BOD by Sucofindo accredited by KAN. Record of effluent dis-charge quality test in 2019 e.g.: October with BOD result was 3210. Based on record of effluent discharge quality test in 2019 showed that compli-ance with national regulations (all parameters, particularly BOD still within thresh-old). The organization has a license for land application of mill effluent, i.e.: Decree of Head of integrated services and in-vestment agency (Badan Pelayanan Perizinan Terpadu dan Penanaman Modal) of Padang Lawas Utara District, No. 503/0001/IX/2015, dated September 21, 2015 and valid for 5 (five) years since issuance (September 20, 2020).

Yes No N.A

NCR No :

7.8.4 Mill water use per tonne of FFB is monitored and recorded.

Findings:

The company has plan to monitor and measure the mill water usage under doc-ument Water Management Aek Sigala-gala POM. Mill water use per tonne of Fresh Fruit Bunches (FFB) has been monitored. Based on data Water Consumption year 2020 until June the water utilization for processing was 1.45 m3/ton FFB.

Yes No N.A

NCR No :




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7.9 Efficiency of fossil fuel use and the use of renewal energy is optimised

7.9.1 A plan for improving efficiency of the use of fosil fuels and to optimise renewable energy is

in place, monitored and reported.

Findings:

A plan for improving efficiency of the use of fossil fuels and to optimize renewable energy have been in place and monitored. The company has Emission GHG Miti-gation Procedure No. BAS/SOP-GHG/001, revision 03, dated July 01, 2018. Record of renewable energy utilization has been monitored on regular basis. Record of energy consumption year 2020 until June e.g.: Diesel: 23,042 lt Electricity consumed: 210,434 Kwh Renewable Energy Calculation, there are usage from fiber and shell as much

as 7,473,388 ton (shell) and 21,213,132 ton (fibre). There is no a plan for mill to built a biogas plant.

Yes No N.A

NCR No :

7.10 Plans to reduce pollution and emissions, including greenhouse gases (GHG), are devel-

oped, implemented and monitored and new developments are designed to minimise GHG

emissions

7.10.1 (C) GHG emissions are identified and assessed for the unit of certification. Plans to reduce or

minimise them are implemented, monitored through the Palm GHG calculator and publicly

reported.

Findings:

The company has been conducted an assessment of all pol-luting activities in-cluding gaseous emissions, particulate/soot emissions and effluent. The result of assessment has recorded on “Daftar Sumber Limbah, Polusi, serta Emisi GHG”. The GHG sources emission come from land clearing with CO2 gas and the man-agement plan will be zero burning, pro-tecting HCV area, tree planting on riparian zone. This identifi-cation is part of implementation on GHG mitigation procedure (SOP-MR-19, dated 30 April 2018) other activity in the procedure are GHG miti-gation and reporting. The company has established plans to reduce or minimise the GHG emission year 2019. The implementation of mitigation plan can be seen on record of GHG mitigation year 2019, example: periodically conduct air emission tests, vehicle engine maintenance, etc. The POM has established the plan to monitor the emission of pollutans including GHG from mill. The regular monitoring result available in place. The mitigation re-port will bring to management review periodically to evaluate by HSE Officer. The company has conducted the GHG calculation with used RSPO GHG Calcu-lation version 4.

Yes No N.A

NCR No :

7.10.2 (C) Starting 2014, the carbon stock of the proposed development area and major potential

sources of emissions that may result directly from the development are estimated and a

plan to minimise them prepared and implemented (following the RSPO GHG Assessment

Procedure for New Development).

Findings:

N/A, no development area since 2014.

Yes No N.A

NCR No :




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7.10.3 (C) Other significant pollutants are identified and plans to reduce or minimise them implement-

ed and monitored.

Findings:

N/A, no other significant pollutants.

Yes No N.A

NCR No :

7.11 Fire is not used for preparing land and is prevented in the managed area

7.11.1 (C) Land for new planting or replanting is not prepared by burning.

Findings:

The company has a zero burning policy as presented zero burning policy. The company has also SOP for replanting without burning, namly SOP of land clear-ing without burning, BAS/SOP-AGR/002, Rev. 02, dated on 1 July 2018. During recertification audit, there is no new planting and replanting activities. The last planting was conducted by company in 2007.

Yes No N.A

NCR No :

7.11.2 The unit of certification establishes fire prevention and control measures for the areas di-

rectly managed by the unit of certification.

Findings:

The company has a mechanism/system established for fire prevention and con-tral measures for areas directly managed as stated in procedure for fire preven-tion and control (BAS/SOP-SMK3/006, rev.0, date 1 November 2018). The company has fire control equipment for each estates and mill as stated in List of fire control equipment. Some the equipment was available at estate e.g. water tank, fire control truck, some type of water Pump, water hose of various sizes, Helmet etc. Beside that all estate have fire monitoring tower. The company has conducted monitoring fire equipment every month as presented in form of equipment monitoring. Base on the record, all equipments are good condition. During field verification at fire equipment wharehouse, there are equipments available and good condtion. The Company has conducted fire drill regularly at estates and mill with stake-holder such as : On 11 June 2020 attended by 41 participant All simulation for fire handling has attended by workers and emergency respond team. Based on interview with workers and emergency team, they understood mechanism actions to be taken in case of fire occurrence.

Yes No N.A

NCR No :

7.11.3 The unit of certification engages with adjacent stakeholders on fire prevention and control

measures.

Findings:

Company has enggages with stakeholder on fire prevention and control measures. The Company has conducted fire drill regularly at estates and mill with stakeholder such as: On 11 June 2020 attended by 41 participant. All simulation for fire handling has attended by workers and emergency respond team. Base on interview with workers and emergency team, they understood mechanism actions to be taken in case of fire occurrence.

Yes No N.A

NCR No :




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7.12 Land clearing does not cause deforestation or damage any area required to protect or en-

hance HighConservation Values (HCVs) or High Carbon Stock (HCS) forest. HCVs and HCS

forests in the managed area are identified and protected or enhanced

7.12.1 (C) Land clearing since November 2005 has not damaged primary forest or any area required to

protect or enhance HCVs. Land clearing since 15 November 2018 has not damaged HCVs

or HCS forests. A historic Land Use Change Analysis (LUCA) is conducted prior to any new

land clearing, in accordance with the RSPO LUCA guidance document.

Note to Auditor : Refer to Interpretation of Indicator 7.12.2 and Annex 5

Findings:

During recertification audit, that no new planting in 2019. Base on document veification, there were planting in 2005 and 2007 in Aek sigalagala and Aek Kulim. In Aek Sigala-gala and Aek Kulim, there are new plant-ing on 2005 and 2007. The company has LUCA document performed by on 2014. The company has communicated with RSPO about this matter (evidenced by e-mail) by including relevant evidence (such as: Landsat Imagery and HCV Identifi-cation Document 2014). Based on observations on the RSPO Website, it known that the Management Unit with the potential liability of PT Barumun Agro Sentosa is Zero (Number 110). There is no new planting Since 15 November 2018

Yes No N.A

NCR No :

7.12.2 (C) HCVs, HCS forests and other conservation areas are identified as follows :

a. For existing plantations with an HCV assessment conducted by an RSPO-approved

assessor and no new land clearing after 15 November 2018, the current HCV as-

sessment of those plantations remains valid.

b. Any new land clearing (in existing plantations or new plantings) after 15 November

2018 is preceded by an HCV-HCS assessment, using the HCSA Toolkit and the

HCV-HCSA Assessment Manual. This will include stakeholder consultation and

take into account wider landscape-level considerations.

PROCEDURAL NOTE for 7.12.2: For details of transitional measures, refer to Annex 5: RSPO transition from HCV assessments to HCV-HCS Aassessments.

Findings:

Based on document verification that no any land clearing after 15 November 2018. The HCV assessment conduct by qualified HCV assessor. The company has conduct HCV assessment performed in consultation with relevant stakehold-er on 15 August 2015 including community and internal workers. The HCV as-sessment has including to checking the biological. The HCV assessment has in-clude both the planted area itself and relevant wider landscape-level considera-tions. The HCV assessment conduct used the Common Guidance for Identifica-tion of HCV, HCV assessment manual (HCVRN 2013) and Guidance of identifica-tion of HCV in Indonesia (HCV Toolkit Indonesia, 2008). The company has conduct HCV assessment on December 2015 by Remark Asia. The HCV assessment cover the presence of protected area that significantly af-fected by the plantation and mill, conservation status and identification of HCV habitats. Total HCV area of this second assessment are:

HCV Atribute Hectare

HCV 1 39.06

HCV 4 59.05

TOTAL 62.42

Yes No N.A

NCR No :




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Based on document verification that no new planting since 15 November 2018

7.12.3 (C) In High Forest Cover Landscapes (HFCLs) within HFCCs, a specific procedure will apply for

legacy cases and development by indigenous peoples and local communities with legal or

customary rights, taking into consideration regional and national multi-stakeholder pro-

cesses. Until this procedure is developed and endorsed, 7.12.2 applies.

PROCEDURAL NOTE for 7.12.3: There should be demonstrable benefits to the local community; clear recognition of legal and customary lands based on participatory land use planning; devel-opment should be proportional to the needs of the local community; with a balance between con-servation and development. This procedure will also cover planting on previous or abandoned ag-ricultural land / plantations. All other P&C requirements apply, including FPIC and HCV require-ments.

Findings:

N/A, no new land clearing after 15 November 2018.

Yes No N.A

NCR No :

7.12.4 (C) Where HCVs, HCS forests after 15 November 2018, peatland and other conservation areas

have been identified, they are protected and/or enhanced. An integrated management plan

to protect and/or enhance HCVs, HCS forests, peatland and other conservation areas is de-

veloped, implemented and adapted where necessary, and contains monitoring require-

ments. The integrated management plan is reviewed at least once every five years. The in-

tegrated management plan is developed in consultation with relevant stakeholders and in-

cludes the directly managed area and any relevant wider landscape level considerations

(where these are identified).

Findings:

The company has conduct HCV assessment on December 2015 by Remark Asia. The HCV assessment cover the presence of protected area that significantly af-fected by the plantation and mill, conservation status and identification of HCV habitats. Total HCV area of this second assessment are:

HCV Atribute Hectare

HCV 1 39.06

HCV 4 59.05

TOTAL 62.42

The HCV distribution map is available in the document. Both the first and second HCV assessment had gone through public consultation process with local com-munities evidenced by minutes of meeting and attendance list. The landscape boundary for HCV assessment was Siumpat Sub-Watershed which is part of Ba-rumun Watershed where PT BAS is located with total area of 13,759.20 Ha. The nearest conservation zone from the company is Padang Lawas Protection Forest (approx.40 km) and elephant training centre in Labuhan Batu Selatan (approx. 15 km). Documents of management and monitoring plan to protect the HCV and RTE species within the company are available. Base on document verification, there are evidences that the program implemented e.i:

The monitoring and management activity is reported per semester, evidenced by Laporan Pengelolaan dan Pemantauan HCV Semester II 2019. The report contain a description of management and monitoring plan which is developed

Yes No N.A

NCR No :




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according to HCV threat analysis and taken account as basis of monitoring and management activities

Socialization of HCV to workers on 17 March 2020 attended by 47 partici-pants

monitoring and maintenance on signboard of HCV Base on field observation at division IV Aek Kulim, Aek Barumun and Aek Sigalagala (Riparian area), there is signboard of HCV information, signboard of chemical application is prohibited, signboard of protection species and signboard of destroy vegetation/trees is prohibited

7.12.5 Where rights of local communities have been identified in HCV areas, HCS forest after 15

November 2018, peatland and other conservation areas, there is no reduction of these

rights without evidence of a negotiated agreement, obtained through FPIC, encouraging

their involvement in the maintenance and management of these conservation areas.

Findings:

Base on HCV document in 2015, there is no right local comunitis have been iden-tified in HCV in company. While Based on HCV report, There is no area of HCV set-asides with existing right of local community and no land claim by local peo-ple at anywhere within the estates. Thus the HCV area within are so far not under threat by other parties.

Yes No N.A

NCR No :

7.12.6 All rare, threatened or endangered (RTE) species are protected, whether or not they are

identified in an HCV assessment. A programme to regularly educate the workforce about

the status of RTE species is in place. Appropriate disciplinary measures are taken and

documented in accordance with company rules and national law if any individual working

for the company is found to capture, harm, collect, trade, possess or kill these species.

Findings:

The company has implemented protection measures for RTE species along with its monitoring according to procedure of Flora Fauna Identification and Protection (BAS/SOP-NKT/003 Rev 01, dated July 01, 2018). The identification could be by tracks, sounds, direct encounter or information from stakeholders. The company has flora and fauna list which will be update if there is new species identified within the area. The company has established annual training program which also include dissemination regarding HCV and RTE protection. The company has management and monitoring program to educate the worker and local community about the status RTE species by periodic socialization of HCV value. Thereis evidence that the plan implemented such as. Install Signboard related HCV including information of protection species RTE at division IV Aek Kulim, re-port of identification flora and fauna in PT Barumun Agro Santosa in 2019 (in the report, there is no RTE in the estates during Species monitoring/ indentification done), Socialization of HCV and RTE to workers on 17 March 2020 attended by 47 participants. During surveillance audit, there is no employees who have captured, harmed, col-lected or killed any RTE species.

Yes No N.A

NCR No :

7.12.7 The status of HCVs, HCS forests after 15 November 2018, other natural ecosystems, peat-

land conservation areas and RTE species is monitored. Outcomes of this monitoring are

fed back into the management plan.

Findings:




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The company has a HCV plan management plan in 2020. The plan contains maintenance HCV signboard, planting some trees at HCV area, Socialization of HCV to employees and community, Monitoring flora md fauna at HCV area. The HCV management plan in 2020 arranged by the outcomes of monitoring fed back in 2019 such as: maintenance HCV signboard because the signboard is damage

Yes No N.A

NCR No :

7.12.8 (C) Where there has been land clearing without prior HCV assessment since November 2005,

or without prior HCV-HCSA assessment since 15 November 2018, the Remediation and

Compensation Procedure (RaCP) applies.

Findings:

Base on document veification, there were planting in 2005 and 2007 in Aek sigalagala and Aek Kulim. In Aek Sigala-gala and Aek Kulim, there are new plant-ing on 2005 and 2007. The company has LUCA document performed by on 2014. The company has communicated with RSPO about this matter (evidenced by e-mail) by including relevant evidence (such as: Landsat Imagery and HCV Identifi-cation Document 2014). Based on observations on the RSPO Website, it known that the Management Unit with the potential liability of PT Barumun Agro Sentosa is Zero (Number 110). There is no new planting Since 15 November 2018.

Yes No N.A

NCR No :




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6.2. Compliance to RSPO Role of Market Communications & Claims:

Chapter is applicable by client : Yes No

If yes, what is type of communication applied by client: General Corporate Communication (off product claim)

Business to Business Communication

Business to Consumer Communication Following the above selected communication method, please describe compliaces to company com-pliance to RSPO role of market communications and claims section 4 / 5 / 6: Please refer to RSPO-SCC explanation above. If the company using the RSPO trademark, this applied on:

The company website or digital platform

Business cards

The company / product promotional use (leaflet, brochure, banner, etc)

Document/report: ………………………………………………………………………………………….

The company demonstrate that:

The company hold a trademark license from the RSPO Yes No

Approval for off/on product trademark and/or label used recieved

Yes Yes

If yes, please explain the approval of off/on product trademark and/or label from RSPO ………………………………………………………………………………………………………….

6.3. Compliance to Book & Claim requirement:

Chapter is applicable by client : Yes No

If yes, please complete information require in appendix 7.

If not, please delete appendix 7




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7.0 Status of Previously Identified Non-Conformities

7. 1. Major non-conformities

Ref NCR No. NCR Statement Raised

Auditee Response

Verification During ASA-01

Date of

closure

Auditor/

Conclution Correction Corrective Action

RSPO Certification System

- - - - - - -

RSPO P&C INA NI - 2016

- - - - - - -

RSPO SCCS 2014 (Rev. June 2017)

- - - - - - -

7. 2. Minor non-conformities

Ref NCR No. NCR Statement Raised

Auditee Response

Verification During ASA-01

Date of

closure

Auditor/


- - - - - - -




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8.0 Identified Non-conformances, Corrective Actions Taken and Auditors Conclusions

A total of 4 nonconformances were identified during the Re-certification assessment. These consisted of 2 (two) Critical non-conformities and 2 (two) Non-

Critical non-conformities. For the major non-conformances, the company has taken the necessary corrective action to close these non-conformances within 90 days from completion of the assessment time (closing meeting), and this was verified by the audit team through as well as checks of documents submitted by the company. For the minor non-conformances, the company has taken corrective action against these as well, and for those which could not be verified as closed through document checks, the closure of these minor non-conformities will be assessed during the next surveillance audit. A summary of all identified non-conformances, corrective actions taken and auditor conclusions is as explained below:

8. 1. Critical non-conformities

Ref NCR No. NCR Statement

Raised

Auditee Response Verification of Corretion / Corrective

action

Date of

closure

Auditor/


RSPO Certification System / RSPO P&C INA NI - 2020

2.1.1 RSPO03214 Some condition does not comply with regula-tions such as: a. the unit of certifica-

tion does not yet have a licensed first aid officer as re-quired by national regulation i.e. Permenakertrans No Per-15 year 2008

b. PT BAS has not ful-ly implemented the provisions under Permenaker No. 19/2012. For ex-ample: The FFB transportation con-tractor on behalf Suyanto) is not yet a legal entity, proof

a. Coordinating with the Local Man-power Office to issue a First Aid Officer License to all employees who have attend-ed training as First Aid Officers.

b. Ask the contractor on behalf of Suyanto to create a legal entity company and make a (new) re-agreement with PT BAS and re-port to the local Manpower Office

a. Evaluate laws and regulations, espe-cially Permenaker-trans No.15 / 2008 so that the imple-mentation of these laws and regula-tions can be fulfilled and fully imple-mented by the company.

b. All agreements for providing employ-ment to other / third parties will pay at-tention and re-evaluate the laws and regulations No.19 / 2012.

Document: The company has shown evidence of improvement, i.e:: 1. First Aid Officer License for 18

workers 2. Deed of incorporation of PT Suyanto

Prestasi Mobilindo 3. Proof of report on the cooperation

agreement on behalf of PT Suyanto Prestasi Mobilindo and PT BAS to the relevant agencies.

4. Addendum to the cooperation con-tract between PT BAS and PT Suyanto Prestasi Mobilindo (Nomor: 03/PPP/PT BAS/VIII/2020 dated Au-gust 1, 2020).

Auditor Assessment: a. The company has shown the objec-

tive evidence that there are 18 workers as first aid office. Based on Permenaker No. 15/2008, the com-

Closed

(27/08/2020)




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Raised


action

Date of

closure

Auditor/


of work agreement record from related agencies has not shown

pany are required to have first aid of-ficers with a ratio of 1: 150 workers (PT BAS have 2,201 workers todate June 2020).

b. PT BAS has shown the objective ev-idence that contractor on behalf SUYANTO has changed to be a le-gal entity (PT Suyanto Prestasi Mo-bilindo). PT BAS has also shown that the new contract are reported to related agency as per Aug 10, 2020.

Based on the document are submitted the auditor team has conclusion this non-conformace is closed.

3.6.2 RSPO03216 The results of the acci-dent investigation that occurred on June 1, 2019, at the Aek Sigalagala POM on be-half of Bernad Siburian, one of maintenance employees did not match the information obtained during the in-terview with related par-ties. Furthermore, the result of investigation results do not find the root causes, so the rec-ommendations for im-provement are not rele-vant

Re-investigate em-ployees / personnel (victims) who have experienced work ac-cidents to obtain clear and accurate chrono-logical information about the causes of work accidents.

Providing OHS training and socialization, espe-cially for POM's em-ployees (Maintenance section) in order to bet-ter understand the im-portance and concern of safety awareness, so that in the future there will be no more mis-communication between fellow employees and the OHS investigation team

Document: The company has shown evidence of improvement, i.e:: 1. Investigation of work accident. 2. List of participant of socialization 3. Photograph 4. Work Accident recapitulation period

July 2019 to August 2020

Auditor Assessment: The company has shown the objective evidence such as Investigation Work Accident Report, socialization of OHS for POM’s employee (21 workers) and recapitulation of work accident period July 2019 to August 2020 (Based on this recapitulation work accident document, it known that there is no work accident again). The socialization conducted on August 3, 2020.

Closed

(25/08/2020)




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Raised


action

Date of

closure

Auditor/


Based on the document are submitted the auditor team has conclusion this non-conformace is closed.

8. 2. Non-Critical Non-conformities


Raised


action

Date of

closure

Auditor/


2.2.3 RSPO03215 in Working Agreement with third party Suyanto and PT Ivan Motor Se-jahtera (FFB Transport) and FFB Supplier Agreements with Co-operation PSMS, Co-operation PBSM, there is no clause about dis-allowing child, forced and trafficked labour to be employed by the third party

Conduct an Adden-dum to Employment Agreements with all contractors by adding a separate clause that prohibits practices in-volving child labor, forced labor and hu-man trafficking.

For all the drafting of new employment agreements (in the fu-ture) will observe and implement all clauses required by the latest RSPO P&C.

The company has sent correction and corrective action request. The imple-mentation of this CAR will seen in the next surveillance.

Closed

(06/08/2020)

6.2.7 RSPO03217 PT Barumun Agro Sen-tosa (Aek Kulim Estate, Aek Sigala-gala Estate, and Aek Barumun Es-

Conducting perfor-mance appraisals for all harvest workers, if they meet the re-

Consistently assessing the performance of all harvesters and if the harvesters needs have

The company has sent correction and corrective action request. The imple-mentation of this CAR will seen in the next surveillance.

Closed

(13/08/2020)




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Raised


action

Date of

closure

Auditor/


tate), still employ har-vesters as casual daily workers. Some of the harvesters who are casual workers start to join to work since year 2014. While harvesting is the core job in estate and company does not employ them only for seasonal or peak sea-son

quirements (Pass) within a 3 (three) month trial period, an appointment will be made to become per-manent employee.

been met (done by permanent workers), then the use of casual labor is not carried out.




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9.0 Noteworthy Positive Components and Potential for Improvement

9.1. Positive Observation:

No. Ref. Comments

- - -

9.2. Potential for Improvement:

No. Ref. Comments

- - -




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10.0 Issues Raised by Stakeholders and Findings Pertaining to Issues

10.1 Issues Raised during Stakeholder Consultation Meeting

No. Issues Raised Management Response Auditor Verification

1. Workforce Agency of Padang Lawas Utara

District and Labor Inspector

a. The company has reported regarding the

OHS implementation well as accordance with the its period of reporting.

b. The company has reported regarding the Required Annual Workforce well as accordance with the its period of reporting.

c. The company has provided wages in accordance with the regulations.

a. Management strives to always comply with regula-

tions related to cooperatives.

b. Idem to point A.

c. Idem to point A.

a. OHS Report Period Quarter I 2020 to

Manpower Agency of North Sumatera Province on 17 April 2020

b. Manpower report to Manpower Minis-try online, with registration number 20157.01262.20190207.0-001 dated 27 July 2019 and valid until 27 July 2020

c. To follow the regulation, company has 2 decrees related to salary for work-ers. Decree of PT BAS Director No.

008/SK-BHL/BAS-DIR/XII/2019 dated 13 December 2019 about Wage for Casual Daily Worker (BHL), per 1 January 2020 raised from Rp 102,029 per working day to Rp 110,712 per working day.

Decree of PT BAS Director No. 007/SK-SKU/BAS-DIR/XII/2019 dated 13 December 2019 about Wage for Permanent Daily Worker (SKU), per 1 January 2020 raised from Rp 85,024 per working day to Rp 92,260 per working day. Based on interview with workers and human re-




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d. There is no information regarding labour conflict in the unit POM and Estate.

e. The company has labor union in the unit. f. There are still harvest workers with BHL

status

d. Idem to point A.

e. Yes. f. Yes, the company has planned to appoint har-

vester for permanent worker as gradually

source department, minimum wage received by SKU worker per month is Rp 2,767,784 be-cause 30 days as stated is in-cluded public holidays and Sun-days, and SKU workers work 25 days per month

d. Based on interview with labor union

representative, there is no labor dis-putes.

e. Yes, there is f. This condition raise as nonconformity

under NCR No. RSPO03217 (Indica-

tor 6.2.7)

2. Local Land Agency of South Tapanuli

District

a. So far, the Local Land Office has never

received a report of complaints from the public regarding land disputes.

b. The HGU certificate holders must carry out maintenance of boundary stakes and can carry out rehabilitation of stakes in-dependently.

c. PT BAS has just registered its land and has obtained a HGU certificate for an ar-

a. Yes, that’s right

b. Idem to point A.

c. Idem to point A.

a. The company (POM and Its Supply

base) already have land use rights document.

b. Based on field visit, found that the boundary markers are clearly visible and well maintained. The boundaries made from cement concrete and painted. The mark (boundary number) is painted on the top. Some bounda-ries has been verified and observed that there is no any planted beyond the authorised boundaries.

c. Decree letter from Minister of Agraria No. 7/HGU/KEM-ATR/BPN/I/2020




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ea of 1,476,197 hectares. dated January 20, 2020 as large as 1,476.197 Ha located on Jambu To-nang, Marlaung, Mananti, Manaretua and Ujung Batu Jae Village, Ujung Batu Sub-district, Padang Utara Dis-trict, North Sumatera Province and Land use certificate No.243 to 246 as large as 1,476.197 Ha.

3. Environmental Agency of Padang Lawas

Utara District

a. The company has an environmental im-pact assessment document.

b. The company has reported regarding the RKL/RPL Report well as accordance with the its period of reporting.

a. Management strives to always comply with regula-

tions related to cooperatives.

b. Idem to point A.

a. In carrying out of of mill and estate

operations, the unit of certification has been identified environmental as-pect and conducted environmental impacts assessment and documented in the AMDAL (analysis of environ-ment impact) document. AMDAL processes and document preparation has been in accordance with national regulations and approved by Gover-nor of Sumatera Utara province (de-cree no. 188.44/444/KPTS-/2014, dated July 25, 2015).

b. The plan has been implemented and reported to authorized agencies every 6 (six) month periodically. The last implementation report was periode of Semester II 2019 to Environmental Agency of North Sumatera Province, Manpower Agency of North Sumatera Province on 27 January 2020 and to Ministry of Environment and Forestry on 14 January 2020.




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c. The company has reported regarding the hazardous waste well as accordance with the its period of reporting.

c. Idem to point A.

c. Hazardous Waste Report and 2nd Manifest Period Quarter I 2020 to En-vironmental Agency of North Su-matera Province and Environmental Agency of Padang Lawas Utara Dis-trict on 8 April 2020.

4. Plantation Agency of Padang Lawas Utara

District

a. The Company always proactive in

coordinating with agencies. Reports on plantation business developments are routinely delivered.

b. There is no information any from the community related to land disputes.

Management strives to always comply with related regulations.

a. Plantation Development Report period

Semester II 2019 to Investment Agen-cy of Padang Lawas Utara Agency, Regent of Padang Lawas Utara and Agriculture Agency and Plantation Agency of Padang Lawas Utara Dis-trict on 1 February 2020.

b. Based on document observation, in-terview with management / stake-holder and field visit, there is no found issues related to land conflict.

5. Ujung Gading Julu, Ujung Gading Jae,

Huta Raja Village

Proposals are always responded to by PT BAS. CSR programs are also quite good. PT BAS has a built partner program and an environmental development program.

Management always strives to establish good relations with the surrounding community

-

6. Gender Committee

No issues submitted during the public consultation

-

-




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7. Labor Union

So far, there has been a fairly good relationship between the company and the union. All issues related to employment are well discussed.

-

-

8. NGO – LS KPK

The company regularly organizes cheap markets, plant trees and engages the community in preventing forest and land fires. So far, the company's relationship with the community is considered quite good.

-

-

10.2 Issues Raised during Stakeholder Interviews On-site

No. Issues Raised Audit Verification




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11.0 Certification Decision

11.1 Recommendation for Certification

PT Barumun Agro Sentosa – Aek Sigalagala POM has established and maintains an effective system to ensure compliance with the RSPO principles and criteria. The audit team has confirmed through the audit process that the company’s practices complies with, adequately maintains and implements the requirements of RSPO Principles and Criteria [Indonesian National Interpretation Principles & Criteria, April 20, 2020].

PT TUV Rheinland Indonesia recommends that PT Barumun Agro Sentosa – Aek Sigalagala POM be ap-proved as a producer of RSPO Certified Sustainable Palm Oil.

11.2 Date of Certificate Issued and Scope of Certificate

The scope of the certificate covers production of palm oil from AEK SIGALAGALA PALM OIL MILL and its

supply base (Aek Sigalagala, Aek Kulim and Aek Barumun Estate) under PT Barumun Agro Sentosa. The date of certificate issued is 7th October 2020. Further details of the certificate are as per Appendix 1.

11.3 Date of Next Surveillance Visit The next annual surveillance audits shall be undertaken within 12 (twelve) months of the license expiration dates, but not earlier than 8 (eight) months after the expiration date




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12.0 Acknowledgements of Internal Responsibility and Formal Sign-Off by Client

It is acknowledged that the assessment visit was carried out as described in this report and we accept the as-sessment findings and report content.

Signed on behalf of

PT Barumun Agro Sentosa

Signed on behalf of

PT TUV Rheinland Indonesia

IDRIS TAN

IBNU SATRIA PRABUDI

Management Representative Lead Auditor Date: September, 2020 Date: September, 2020

APPENDICES




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Appendix 1: Details of Certificate




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Appendix 2: Re-certification Assessment Plan

Date / Time (1) Organizational Unit and Processes Auditor /

Abbrev. Interviewee

Procedure – Element –

Standard Chapter

Senin, 13 Juli 2020

Lokasi : Jakarta, Medan, Lokasi

06:00 – 08:20 Perjalanan dari Jakarta ke

Medan

BS, WHY - Batik Air ID6882

07:30 – 08:30 Perjalanan ke Kuala Namu EF, ISP - Mohon disediakan

transportasi 08:30 – 18:30 Perjalanan ke Lokasi / Unit All Auditor -

Hari ke-1 – Selasa, 14 Juli 2020

Lokasi : PT BAS, Gunung Tua

06:00 – 09:00 Perjalanan ke Dinas ISP

08:00 – 08:30 Rapat Pembukaan Aek Sigalagala POM

Perkenalan Tim Auditor BS On behalf ISP

Presentasi dari Perusahaan - Related PIC

Verifikasi NC sebelumnya All Auditor

09:00 – 12:00 Konsultasi Publik

Dinas Pemerintah Kab. Paluta

Dinas Perkebunan / Pertanian

ISP Related PIC

Gunung Tua Dinas Lingkungan Hidup

Dinas Tenaga Kerja

Badan Pertanahan Pd. Sidempuan

UPT Pengawasan Naker

Komunitas Lokal

Desa sekitar perkebunan

EF, BS, WHY

Related PIC Wawancara Komite Gender

Serikat Pekerja

Kontraktor & LSM

12:00 – 14:00 ISHOMA

14:00 – 17:30 Pemeriksaan Dokumen: Aek Sigalagala POM Pemberian Informasi kepada

pemangku kepentingan

EF Manager and Related

PIC

Criterion 1.1

Perilaku Etis Criterion 1.2

Kepatuhan Hukum Kontraktor Criterion 2.2

Sistem Manajemen Sumber Daya Manusia

Criterion 3.5

Menghormati Hak Asasi Manusia (HAM)

Criterion 4.1

Sistem penanganan pengaduan dan keluhan

Criterion 4.2

Berkontribusi pada pem-bangunan berkelanjutan di ting-kat lokal

Criterion 4.3

Unit sertifikasi berhubungan dengan semua petani (Petani Mandiri dan Petani Plasma) dan semua pelaku usaha setempat lainnya secara adil dan trans-paran

Criterion 5.1

Unit sertifikasi mendukung per- Criterion 5.2




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Abbrev. Interviewee


Standard Chapter

baikan taraf penghidupan petani dan keikutsertaannya dalam rantai nilai minyak kelapa sawit berkelanjutan.

Segala bentuk diskriminasi dil-arang

Criterion 6.1

Upah dan persyaratan-persyaratan kerja

Criterion 6.2

Hak Berserikat Criterion 6.3

Anak-anak tidak dipekerjakan atau dieksploitasi

Criterion 6.4

Tidak ada pelecehan atau kekerasan di tempat kerja, dan hak reproduksi dilindungi

Criterion 6.5

Tidak ada bentuk penggunaan pekerja paksa dan pekerja dari perdagangan manusia.

Criterion 6.6

14:00 – 17:30 Pemeriksaan Dokumen: Penggunaan lahan untuk kelapa

sawit tidak mengurangi hak le-gal, hak adat atau hak pakai

ISP Manager and Related

PIC

Criterion 4.4

Tidak ada penanaman baru yang dilakukan di atas lahan masyarakat setempat tanpa – KBDD

Criterion 4.5

Negosiasi & kompensasi hilangnya hak legal, adat atau pemanfaatan lahan

Criterion 4.6

Masyarakat yang memiliki hak legal, hak adat, atau hak pakai, maka mereka diberikan kompensasi untuk semua perolehan lahan dan pelepasan hak yang disepakati, dengan tunduk pada KBDD dan kesepa-katan hasil negosiasi

Criterion 4.7

Hak penggunaan lahan dapat dibuktikan dan tidak digugat secara sah oleh masyarakat setempat yang mampu membuk-tikan bahwa mereka memiliki hak legal, hak adat, atau hak pa-kai.

Criterion 4.8

14:00 – 17:30 Pemeriksaan Dokumen: Pemenuhan Peraturan WHY Manager

and Related PIC

Criterion 2.1

Management plan Criterion 3.1

Pemantauan Management Plan Criterion 3.2

Prosedur Operasi Criterion 3.3

Penilaian dampak nergy dan lingkungan

Criterion 3.4

Keselamatan dan Kesehatan Kerja (K3)

Criterion 3.6

Pelatihan yang memadai Criterion 3.7




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Abbrev. Interviewee


Standard Chapter

Lingkungan kerja yang berada di bawah kendalinya tetap aman dan tidak memiliki risiko bagi kesehatan

Criterion 6.7

Pengendalian Hama Terpadu (PHT)

Criterion 7.1

Penggunaan Pestisida Criterion 7.2

Kesuburan Tanah Criterion 7.4

Praktik Pencegahan Erosi Criterion 7.5

Survei tanah dan informasi topo-grafi

Criterion 7.6

14:00 – 17:30 Pemeriksaan Dokumen: Pasokan TBS yang legal. BS Manager

and Related PIC

Criterion 2.3

SCCS / Rantai Pasok Criterion 3.8

Pengelolaan Limbah Criterion 7.3

Tidak ada penanaman baru di lahan gambut, berapapun kedalamannya, setelah tanggal 15 November 2018

Criterion 7.7

Kualitas dan ketersediaan air permukaan dan air tanah.

Criterion 7.8

Efisiensi penggunaan bahan ba-kar fosil dan penggunaan nergy terbarukan dioptimalkan

Criterion 7.9

Rencana untuk mengurangi pencemaran dan emisi, terma-suk Gas Rumah Kaca (GRK), dikembangkan, diimplementasi-kan dan dipantau, dan pengem-bangan baru dirancang untuk meminimalkan emisi GRK

Criterion 7.10

Api tidak digunakan untuk pem-bukaan lahan dan dicegah penggunaannya pada lahan yang dikelola.

Criterion 7.11

Pembukaan lahan tidak me-nyebabkan terjadinya deforestasi atau kerusakan pada area mana pun yang dipersyaratkan untuk melindungi atau meningkatkan Nilai Konservasi Tinggi (NKT) atau hutan Stok Karbon Tinggi (SKT). NKT dan hutan SKT yang ada di area yang dikelola, diiden-tifikasi dan dilindungi atau diting-katkan.

Criterion 7.12

17:30 - ……... Hari Pertama Selesai

Hari ke-2 – Rabu, 15 Juli 2020

Lokasi : Estate / POM

08:00 – 12:00 Observasi Lapangan:

Pemenuhan Peraturan Perun-

All Auditor

Manager and Related

Aek Kulim Estate,

Aek Sigala-gala Estate




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Abbrev. Interviewee


Standard Chapter

dangan PIC Aek Barumun Estate Patok Batas HGU ISP

Best Practice Kebun WHY

K3 WHY

Pengelolaan Lingkungan BS

Pengelolaan Limbah BS

Kesuburan Tanah WHY

Pengelolaan Erosi Tanah WHY

Pengelolaan Kualitas Air BS

Pengelolaan Bahan Kimia WHY

Pengelolaan Areal HCV BS

Gas Rumah Kaca BS

Interview dengan stakeholder terkait (spt: Kepala Desa, Tokoh Masyarakat, Perwakilan Pekerja dlsb)

EF

Observasi lapangan terkait penyediaan infrastruktur

EF

12:00 – 14:00 ISHOMA

14:00 – 17:30 Observasi Lapangan:

Pemenuhan Peraturan Perun-dangan

All Auditor

Manager and Related

PIC

Aek Sigalagala POM

Best Practice Pabrik WHY

Pengelolaan Bahan Kimia WHY

K3 WHY/ ISP

Pengelolaan Lingkungan BS

Pengelolaan Limbah BS

Efisiensi Energi BS

Gas Rumah Kaca BS

SCCS BS

17:30 - …… Hari Kedua Selesai

Hari ke-3 – Kamis, 16 Juli 2020

Location : Estate & POM

08:00 – 12:00 Pemeriksaan Dokumen: Aek Sigalagala POM Pemberian Informasi kepada

pemangku kepentingan

EF Manager and Related

PIC

Criterion 1.1

Perilaku Etis Criterion 1.2

Kepatuhan Hukum Kontraktor Criterion 2.2

Sistem Manajemen Sumber Daya Manusia

Criterion 3.5

Menghormati Hak Asasi Manusia (HAM)

Criterion 4.1

Sistem penanganan pengaduan dan keluhan

Criterion 4.2

Berkontribusi pada pem-bangunan berkelanjutan di ting-kat lokal

Criterion 4.3

Unit sertifikasi berhubungan dengan semua petani (Petani Mandiri dan Petani Plasma) dan

Criterion 5.1




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Abbrev. Interviewee


Standard Chapter

semua pelaku usaha setempat lainnya secara adil dan trans-paran

Unit sertifikasi mendukung per-baikan taraf penghidupan petani dan keikutsertaannya dalam rantai nilai minyak kelapa sawit berkelanjutan.

Criterion 5.2

Segala bentuk diskriminasi dil-arang

Criterion 6.1

Upah dan persyaratan-persyaratan kerja

Criterion 6.2

Hak Berserikat Criterion 6.3

Anak-anak tidak dipekerjakan atau dieksploitasi

Criterion 6.4

Tidak ada pelecehan atau kekerasan di tempat kerja, dan hak reproduksi dilindungi

Criterion 6.5

Tidak ada bentuk penggunaan pekerja paksa dan pekerja dari perdagangan manusia.

Criterion 6.6

08:00 – 12:00 Pemeriksaan Dokumen: Penggunaan lahan untuk kelapa

sawit tidak mengurangi hak le-gal, hak adat atau hak pakai

ISP Manager and Related

PIC

Criterion 4.4

Tidak ada penanaman baru yang dilakukan di atas lahan masyarakat setempat tanpa – KBDD

Criterion 4.5

Negosiasi & kompensasi hilangnya hak legal, adat atau pemanfaatan lahan

Criterion 4.6

Masyarakat yang memiliki hak legal, hak adat, atau hak pakai, maka mereka diberikan kompensasi untuk semua perolehan lahan dan pelepasan hak yang disepakati, dengan tunduk pada KBDD dan kesepa-katan hasil negosiasi

Criterion 4.7

Hak penggunaan lahan dapat dibuktikan dan tidak digugat secara sah oleh masyarakat setempat yang mampu membuk-tikan bahwa mereka memiliki hak legal, hak adat, atau hak pa-kai.

Criterion 4.8

08:00 – 12:00 Pemeriksaan Dokumen: Pemenuhan Peraturan WHY Manager

and Related PIC

Criterion 2.1

Management plan Criterion 3.1

Pemantauan Management Plan Criterion 3.2

Prosedur Operasi Criterion 3.3

Penilaian dampak nergy dan Criterion 3.4




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Abbrev. Interviewee


Standard Chapter

lingkungan Keselamatan dan Kesehatan

Kerja (K3)

Criterion 3.6

Pelatihan yang memadai Criterion 3.7

Lingkungan kerja yang berada di bawah kendalinya tetap aman dan tidak memiliki risiko bagi kesehatan

Criterion 6.7

Pengendalian Hama Terpadu (PHT)

Criterion 7.1

Penggunaan Pestisida Criterion 7.2

Kesuburan Tanah Criterion 7.4

Praktik Pencegahan Erosi Criterion 7.5

Survei tanah dan informasi topo-grafi

Criterion 7.6

08:00 – 12:00 Pemeriksaan Dokumen: Pasokan TBS yang legal. BS Manager

and Related PIC

Criterion 2.3

SCCS / Rantai Pasok Criterion 3.8

Pengelolaan Limbah Criterion 7.3

Tidak ada penanaman baru di lahan gambut, berapapun kedalamannya, setelah tanggal 15 November 2018

Criterion 7.7

Kualitas dan ketersediaan air permukaan dan air tanah.

Criterion 7.8

Efisiensi penggunaan bahan ba-kar fosil dan penggunaan nergy terbarukan dioptimalkan

Criterion 7.9

Rencana untuk mengurangi pencemaran dan emisi, terma-suk Gas Rumah Kaca (GRK), dikembangkan, diimplementasi-kan dan dipantau, dan pengem-bangan baru dirancang untuk meminimalkan emisi GRK

Criterion 7.10

Api tidak digunakan untuk pem-bukaan lahan dan dicegah penggunaannya pada lahan yang dikelola.

Criterion 7.11

Pembukaan lahan tidak me-nyebabkan terjadinya deforestasi atau kerusakan pada area mana pun yang dipersyaratkan untuk melindungi atau meningkatkan Nilai Konservasi Tinggi (NKT) atau hutan Stok Karbon Tinggi (SKT). NKT dan hutan SKT yang ada di area yang dikelola, diiden-tifikasi dan dilindungi atau diting-katkan.

Criterion 7.12

12:00 – 14:00 ISHOMA




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Abbrev. Interviewee


Standard Chapter

14:00 – 16:00 Melanjutkan Pemeriksaan Dokumen

All Auditor Related PIC

16:00 – 17:00 Persiapan Rapat Penutupan All Auditor -

17:00 – 18:00 Rapat Penutupan All Auditor Related PIC

18:00 – 21:00 Persiapan Perjalanan ke Me-

dan

All Auditor -

21:00 – 07:00 (+1 day)

Perjalanan ke Medan All Auditor -

Hari ke-4 – Jum’at, 17 Juli 2020

Location : Medan, Jakarta

11:50 – 14:10 Perjalanan ke Jakarta BS, WHY Batik Air ID6891




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Appendix 3: List of Abbreviations

ABR Aek Barumun Estate AK Aek Kulim Estate AMDAL Analisis Dampak Lingkungan & Sosial

(Social & Environmental Impacts Assessment) AS Aek Sigalagala Estate CPO Crude Palm Oil EIA Environmental Impact Assessment ERTs Endangered, Rare & Threatened species ESH Environmental Safety & Health FFB Fresh Fruit Bunches EFB Empty Fruit Bunches HCV High Conservation Value IPM Integrated Pest Management LTA Lost Time Accident MSDS Material Safety Data Sheets NGO NPP

Non-Government Organization New Planting Procedure

OSH Occupational Safety & Health PKO Palm Kernel Oil POME Palm Oil Mill Effluent PPE Personal Protective Equipment RKL Rencana Pengelolaan Lingkungan (Environmental Management Plan) RPL Rencana Pemantauan Lingkungan (Environmental Monitoring Plan) SIA Social Impact Assessment SOP Standard Operating Procedure UKL Upaya Pengelolaan Lingkungan (Environmental Management Efforts) UPL Upaya Pengelolaan Lingkungan (Environmental Management Efforts)

Please add other abreviation if necessary




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Appendix 4: Other Achievement s and Certificatio Helds

Name of mill / es-

tate

Certification Standard /

Award achieved

Certification

Body /

Awarder

Date

Achieved

PT Barumun Agro Sentosa ISO 9001:2015 BUREAU VERITAS Certification

May 17, 2018

ISO 14001:2015 BUREAU VERITAS Certification

May 17, 2018

ISCC PT SGS Indonesia Jan 21, 2013

ISPO PT SGS Indonesia Feb 1, 2016

PROPER (Predicate: BIRU) Environmental Min-istry Republic of In-donesia

2013 – 2014




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Appendix 5 : List of Stakeholders Interviewed and Contacted

No. Name of

Stakeholder Institution / Position Remarks

Management – Mill and Estate

1. Dani General Manager

2. Andy Andrea Management Representative

3. Surianto Estate Manager

4. M. Jaya Kesuma Mill Manager

5. Yusrizal Senior Assisstant – Estate

6. I. Karo-karo Senior Assistant – POM

7. Fitria Wulandari Assisstant Personalia – Estate

8. Ali Bangun Sihombing Assisstant Personalia – POM

9. Irwan Sipahutar Assistant Division I

10. M. Syahrial Assistant Division II

11. Budi Santoso Assistant Division III

12. Taruna Wardiansyah Assistant Division IV

13. Santa Rianto Ginting QA Assisstant

14. K. Karo karo DCC PKS

15. Sobar Ilham DCC Kebun

16. Abdul Halim Krani APK

17. Posma Pangaribuan Krani APK

Communities, Internal Stakeholder & Local Goverment

1. Budi Hendri Manpower Agency of Padang Lawas Utara

2. M. Zakir S. Daulay Agriculture Agency of Padang Lawas Utara

3. Milda R. Ritonga Agriculture Agency of Padang Lawas Utara

4. Gerlina K. Harahap Enviromental Agency of Padang Lawas Utara

5. Gorsin Land Agency of South Tapanuli

6. Ali Sakban Labor Inspector of North Sumatra

7. Edi Purwanto Labor Inspector of North Sumatra

8. Timbulan Secretary of NGO LS-KPK

9. Haikal Chairman of Labor Union

10. Tondi Setiawan Hsb Sceretary of Labor Union

11. Vivi Hariani Chairman of Gender Committee

12. Hariono Contractor – PT Ivan Motor

13. Suhendri Contrator – Suyanto

14. Parubahan Hasibuan Ujung Gading Julu Village

15. H. Syamsir Hasibuan Ujung Gading Jae Village

16. Anwar Hasibuan Huta Raja Village

17. Mahmudin Harahap Public Figure

18. Makmur Siregar Public Figure

Workers

1. Akhirul Syahputra Storage Chemical Operator – ABR

2. Karleno Ginting Foreman Spraying – ABR

3. Rius Sprayer - ABR

4. Arma Putra Sprayer - ABR

5. Yareti Sprayer - ABR

6. Yanulo Sprayer - ABR

7. Muhammad Hamdani Sprayer - ABR

8. Muhammad Asril Sprayer - ABR

9. James Sprayer - ABR

10. Niberi Sprayer - ABR

11. Nur Jannh Dewi Sprayer - ABR

12. Nusa Mawarni Sprayer - ABR

13. Evan Sprayer - ABR

Appendix 6 : Organization’s land History and information about all previous users of the land.

Total of land compensation : …… ha Total of entity : …… unit so minimum of the quantity of sample each audit is 0.8 x √….. unit = …. unit

No

Year of Verifica-tion

Location (estate name and or village/sub-village

name)

Previous land owner (person name / group

name / traditional group name / etc)

Total areas (ha)

Year of land released and their evi-dences

Remarks or the result of interview Plan Actual

1.

2.

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