Public Summary RSPO PT. Tunas Baru Lampung

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RSPO

Assessment Report

PUBLIC SUMMARY

PT. Tunas Baru Lampung, Indonesia

This public summary has been prepared in accordance with RSPO requirements and the information included is the result of a full RSPO assessment of the Mills and supply base as included in the scope of the certificate.

Prepared by: Tuti Suryani Sirait (Lead assessor). Certification decision made by :Triyan Aidilfiitri

PT. SUCOFINDO (Sucofindo International Certification Services – SICS) Graha Sucofindo B1 Floor,

Jl. Raya Pasar Minggu Kav. 34, Jakarta 12780 Indonesia Contact Person : Tuti Suryani Sirait

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List of Contents Page

A. Scope of the Certification Assessment ... 4

A.1. National Interpretation Used ... 4

A.2. Assessment Type (Estate and Mill) ... 4

A.3. Location Map ... 4

A.3.1. Location Address of the Mill and Approximate Tonnages Certified (CPO and PK5 ) ... 5

A.4. Description of Supply Base ... 5

A.4.1. General Description ... 5

A.4.2. Location of Supply Base ... 5

A.4.3. Statistic of Supply Base ... 6

A.5. Organizational Information and Contact Person ... 7

A.5.1 Audit Against the Rules for Partial Certification ... 8

A.6. Date Certificate Issued and Scope of Certificate ... 11

B. Assessment Process ... 12

B.1. Certification Body ... 12

B.2. Qualifications of the Assesment Team ... 13

B.2.1. Qualifications of the Lead Assessor and Assessment Team ... 13

B.3. Assesment Methodology ... 15

B.3.1. General Overview ... 15

B.4. Stakeholder Consultation ... 18

B.4.1. Summary of How Stakeholder Consultation was Organized ... 18

B.4.2. List of Stakeholder Consulted ... 20

B.4.3. List of Stakeholder Conducted ... 20

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C. Assessment Findings ... 21

C.1. Lead Assessor’s Summary and Recommendation for Certification ... 21

C.2. Summary of the Findings by Criteria ... 22

C.3. Non Conformity Register’s ... 50

D. Certified Organization’s Acknowledgement of Internal Responsibility... 77

D.1. Formal Sign-Off the Assessment Findings ... 77

D.2. Statement by the Certifier Body on Behalf of PT.Sucofindo SBU-SICS ... 78

List of Abbreviation ... 79

Appendix-1 ... 81

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A. Scope of the Certification Assessment

A. 1. National Interpretation Used

The management of the Palm Oil Mill(s) and associated suppliers of Fresh Fruit Bunches (FFB) were assessed for compliance against the International RSPO criteria as interpreted and endorsed for Indonesia.

A. 2. Assessment Type (Estate And Mill)

Certification Unit : PT. Tunas Baru Lampung located at Kampun Kekah, Terbanggi Besar, Central Lampung Regency – Lampung, INDONESIA

A.3. Location map

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A. 3. 1. Location address of the mill and approximate tonnages certified (CPO and PK)

No Name of Mill Location

Address

GPS

Reference

Annual Output (mt)

CPO PK

1. Tunas Baru Lampung Terbanggi Besar

Latitude: 105o11’0.12‖ Longitude: 04o51’5.58‖

21,581.00 5,804.00

Note : This data (Annual output) exclude from non certified suppliers)

A.4. Description of Supply Base

A. 4. 1. General description

The raw material for POM Tunas Baru Lampung is supplied from the FFB estates Tunas Baru Lampung. Bumi Sentosa Abadi (BSA) estate is excluded from the scope of certification because as it has been occupied by the local community and the company’s future plans will divert into rubber estate. POM Tunas Baru Lampung also receives supply of FFB from outsiders. There are no plans to expand the land holding and therefore Principles 7 is not applicable to this assessment.

Tunas Baru Lampung Group operates 3 palm oil mills for processing the crop from 9 estates and all the estates located in Lampung, INDONESIA. Tunas Baru Lampung Group is a member of RSPO and they are implementing a program to achieve RSPO Certified Palm Oil for all its production.

A. 4. 2. Location of the supply base

No. Estate Name Location GPS

Latitude Longitude

1 Tunas Baru Lampung Terbanggi Besar

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A. 4. 3. Statistic of supply base

No. Estate

Name

Planting Year

Area/Planting Year

Age/Planting Year

Estimated FFB/Year

Estimated CPO/Year

1 TBL 2011 8,58 1 year 0 0

2010 4,15 2 year 0 0

2007 10,12 5 year 51 8.321

2002 124,8 10 year 1498 287.572

2001 105,8 11 year 1270 210.216

2000 43 12 year 688 168

1995 5 17 year 100 22

1994 98,8 18 year 1976 402.162

1993 17,9 19 year 420 92.4

1992 993,2 20 year 21850 4883

1991 2560.7 21 year 51214 10715

1990 1089,1 22 year 21782 4792.04

Total 5061.15 100848 21580.71

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A. 5. Organizational Information and Contact Person

1 Company Name PT TUNAS BARU LAMPUNG Tbk.

2 Personal Contact HARDY

3 Vice Management ALFRED OEY

4 Company Address

Wisma Budi lt.9 Jl.H.R.Rasuna Said Kav C-6

12940 Jakarta Selatan

5 Company Status PMDN

7 Phone/ Fax 021-5213383 / 5213332

8 E-mail cs@tunasbarulampung.com

9 Website www.tunasbarulampung.com

10 RSPO membership number 1-0024-06-000-00

1 Company Name PT TUNAS BARU LAMPUNG Tbk.

2 Personal Contact HARDY

3 Vice Management ALFRED OEY

4 Company Address

Wisma Budi lt.9 Jl.H.R.Rasuna Said Kav C-6

12940 Jakarta Selatan

5 Company Status PMDN

7 Phone/ Fax 021-5213383 / 5213332

8 E-mail cs@tunasbarulampung.com

9 Website www.tunasbarulampung.com

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A. 5. 1. Audit Again the Rules for Partial Certification

1. Introduction

The audit team has visited Head office at Way Lunik Lampung to find out the compliance with the rules for partial certification standard in the whole group of Tunas Baru Lampung Group. There are 3 mills and 9 estates within this group. This is the first company in group to be certified by PT Sucofindo, SBU SICS for RSPO certification. The team found that the company conforms with the RSPO requirements for partial certification as stated in the final RSPO certification Systems documents, June 2007, section 4.2.4. Progress and any issue will be verified and reported in subsequent surveillance visits.

2. Assessment agenda (partial Certification Audit)

3. Audit Team Findings in Correlation to the Rules Partial Certifications

a. The Organization is a member of RSPO

PT Tunas Baru Lampung has confirmed membership of the RSPO with no. 1-0024-06-000-00

b. A Time Bound Plan for achieving certification within relevant entities

No Name of

Mill Supply Base Company Location

Estimate time of Certification

1 PKS I TBL

PT. Tunas Baru

Lampung Lampung Tengah

2012

2 PKS II

BNIL

PT. Bangun Nusa

Indah Lampung Tulang Bawang

2014

BTLA

PT. Bangun Tata

Lampung Asri Mesuji

BDP-A

PT. Budi Dwiyaksa

Perkasa Mesuji

BDP-B

PT. Budi Dwiyaksa

Perkasa Mesuji

BNCW _{PT. Budi Nusa} Mesuji

Date Location Agenda

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Cipta Wahana 3 PKS III AKG

SUNGSANG

PT. Adi Karya

Gemilang Way Kanan

2016

AKG BAHUGA

PT. Adi Karya

Gemilang Way Kanan

KAP

MIRARANTI H

PT. Kencana

Acidindo Perkasa Way Kanan

a. Significant Conflicts

As Audit team visited Bumi Sentosa Abadi estate, the land has been occupied by local community since September 2012. The management has decided that the area will be excluded from the scope of the certification and to be planted with rubber estate upon the completion of the case with government. The company has the status quo with the local community and now they are waiting for the government action for this case. Legally, the company owns the land as they have the HGU/ownership document for the total 964Ha.

b. No replacement of primary forest and or area with HCV’s since November 2005 or year

2007 (National Interpretation)

Documented evidence shows that there is no replacement of primary forest or area containing HCVs since November 2005.

c. No labor disputes that are not being resolved through an agreed

Both at mill and estate, representative person has been checked to confirm that there are no labor disputes between company and workers. Auditor has interviewed labor union, workers at mill and estate, staff and managers to ensure that any disputes has been resolved through an agreed process.

d. No evidence of non-compliance with law in any of the non-certified holdings

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A.6. Date Certificate Issued and Scope of Certificate

Name of Client PT TUNAS BARU LAMPUNG

Client Number RSPO 0001

Certificate Number RSPO 0001

Certification Decision Date 5 April 2013

Issued by PT SUCOFINDO, SBU SICS

Address Graha Sucofindo, SBU SICS. Jl Raya Pasar Minggu

Kav 34 Jakarta 13640

Telephone /Fax Tel.: +62-21-7983666 / Fax.: +62-21-7987015

Email tuti@sucofindo.co.id

Website www.sucofindo.co.id

Scope :

Mill PKS Tunas Baru Lampung

Estate Kebun Tunas Baru Lampung

Projected mass balance CPO & PK CPO : 21,580.71 MT and PK : 5,804 MT Certification Registration Code SICS-0001

Type of Certification Single site

Certifier Triyan Aidilfitri

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B. Assessment Process

B. 1.

_{Certification Body}

SUCOFINDO SUCOFINDO ICS INTERNATIONAL CERTIFICATION SERVICES (SUCOFINDO ICS), which was formed in 1994, is one of the strategic business unit that provides certification services for leading companies. Sucofindo Certification by International Certification Services is recognized nationally and international. Quality Management System Certification by SUCOFINDO ICS has obtained accreditation from National Accreditation Committee (KAN-Indonesia).

Lead Auditors and Auditors of SUCOFINDO ICS are trained professionals in the field of international standards, auditing and management systems and are registered in the IRCA (International Register of Certified Auditors) and IEMA (Institute of Environmental Management & Assessment), UK. SUCOFINDO ICS certification process is supported by experts at PT. SUCOFINDO who understand the industry sectors and services in Indonesia.

SUCOFINDO ICS Operational is supported by a network of branch and representative offices of PT. SUCOFINDO spread in 45 cities across Indonesia.

The services provided by International Certification Services Sucofindo are:  Quality Management System Certification

 Environmental Management System  ISO 22000 :2005

 OHSAS 18000 Certification

 Hazard Analytical Critical and Control Point (HACCP) Certification  Good Manufacturing Practice (GMP) Audit

 Product Certification

 Sustainable Forest Management Certification  Products Organic Food Certification

 RSPO certification  ISPO Certification

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B. 2. Qualifications of the Assessment Team

B. 2. 1. Qualifications of the Lead Assessor and Assessment Team

Tuti Suryani Sirait (Lead Auditor) :

Graduated from Institute Agriculure in Bogor (IPB), 1991

She has more than 10 years audit experiences in auditing HACCP, GMP, ISO 9001:2008, ISO 22000:2005, ISPO and RSPO.

She has successfully completion training RSPO by Komisi RSPO, Jakarta, ISPO Lead Auditor Training by Komisi ISPO, Jakarta, Lead Auditor Training of ISO 9000/19011 organized by SICS – Sucofindo, ISO 22000 : 2005 FSMS Auditor / Lead Auditor by Moody International, Singapore ;Lead Assessor for Food Safety Management System (HACCP & GMP) by QAS Sydney, Australia.

She is actively participated in RSPO meeting to discuss RSPO P & C and also as a trainer in ISPO Lead auditor training.

Warsid Sumarlin (Auditor)

He graduated from Institutee Agriculture of Bogor (IPB).

He has more than 5 years audit experiences in OSHAS and SMK3. He has successfully completion from Lead auditor for SMK3, Lead Auditor for OHSAS and Lead Auditor for ISO 9001

Hidayat Pramudiyanto (Auditor)

He graduated from University of Diponegoro, Semarang

He has the training AMDAL A at Universityy of Gadjah Mada Yogyakarta, April 1994,

AMDAL B at University of Diponegoro, Semarang, October 1998, Monitoring of environment quality and waste, IRCA Environmental Management Systems Auditor / Lead Auditor Course, IRCA Quality Management Systems ( QMS ) Auditor / Lead Auditor

Hendy Saputra (Auditor):

He graduated from Universityy of Gadjah Mada, Forestry Faculty, majoring in Forest Product Technology, Jogjakarta

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Legality Assurance System (SVLK) Auditor Training, Pusat Pendidikan dan Pelatihan Departemen Kehutanan, 2010 ; Sustainable Production Forest Management and Timber Legality Assesor Workshop, Komite Akreditasi Nasional, 2009 ; ISO 9001 : 2000 Quality Management Systems (QMS) Auditor/Lead Auditor Training Course No.: A 18021, ISO 14001:2004 Environmental Management System Training, Crenova Management Consultant, 2006 ; Verification of Legal Origin Training, PT. Sucofindo, 2009 ; Verification of Forest Product Exporter (ETPIK), Forest Product Research and Development Centre (Pustlibang) Ministry of Forestry, 2007 ; Measurement of Green Houses Gases from deforestation in Indonesia Seminar, Badan Standarisasi Nasional, 2010 ; Indonesian Ecolabeling Institute (LEI) Workshop : Memorandum of Understanding FSC & LEI ―Addressing Gaps & Seeking Full Cooperation to accelerate forest certification in Indonesia‖, Bogor, Indonesia ; Land Management, Forest, Biodiversity base in Ecosystem Conservation to protect life buffer system, Gadjah Mada University, 2008

Vidyana P. Ahmad (Auditor)

She is Bachelor in Agricultural majoring in Plant Cultivation, Padjadjaran University, 2004.

She is an Auditor for Food Safety System (HACCP/Organic/FSMS), Auditor for Organic System Certification, Auditor for Food Safety Management System (FSMS), Auditor for Sustainable Palm Oil (RSPO) and Accepted Auditor for GMP+ B2 – PDV The Netherlands Certification (PER 00000736)

She has successfully completion training from Auditor for Food Safety System (HACCP), Lead Auditor Training for Organic System Certification, Lead Auditor Training for Food Safety Management System (FSMS), Lead Auditor Training for GMP B2, PDV Standard Scheme 2006 and Lead Auditor Training for RSPO

Prof. Ponten Naibaho (Technical Expert)

He is a Lecturer of Technology of Agricultural Product, Faculty of Agriculture University of North Sumatra

He has the specialty on Technology and Industry of Palm Oil (up-stream and down-stream), Chemical and Technology of Fatty, Chemical Engineering, Technology of Environmental Management and AMDAL (The Environmental Impact Analysis) ―B‖ Course

He has professional experience in Palm Oil Research Center, Division of Chemical Technology, Position as the Expert Researcher in Chemistry and Technology.

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B.3. Assessment Methodology

B. 3. 1. General Overview

The assessment was carry out in conformity with the SBU SICS RSPO manual and procedures for auditor and certifier. The assessment was conducted by qualified auditors and referred to RSPO standard as endorsed for the Indonesia National interpretation. Partial certification audit conducted in March to check compliance with Final RSPO Certification System for partial certification.

The opening and closing meeting was conducted at the office Way Lunik- Lampung and then continue in Mill’s and estate’s offices. Stakeholders meeting was conducted twice, firstly was held during main assessment and secondly during follow up audit.

At the opening meeting, the team audit confirm to conduct the audit at :

Head Office at Way Lunik Lampung, include  Documentation review for transparencies

 CSR plan and policy

 Internal Audit program & Management Review Meeting

 Land ownership and compensation mechanism

At estate, include :

 Worker interviews :OSH. Sexual, religious, racial harassment. Payment scheme, contracts. Child labor. First aid. Awareness.

 Chemical stores : Storage. MSDS leaflets. Herbicide mixing areas. PPE. Ventilation. Security.

 Field inspections: Fertilizing operations. SOP’s., Herbicide application program. Harvesting sites and efficiency. Soil maps. Land preparation. Ground cover. IPM. First aiders and boxes. Soil erosion.

 HCV’s : Identification. Management plans. Environmental Impact Assessments

 Riparian zones :Width. Current and future management, monitoring system

 Water management : Water courses. Water monitoring.

 Road maintenance : Program and progress of road improvement.

 Social amenities : Social Impact Assessments.

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waste management.

 Line sites : Interviews with householders. Inspection of water discharge points. Water improvement plans. Waste disposal.

 Local communities. Contributions made. Employment opportunities. Social impacts. Complaints procedures, Transparency.

At Mill include :

 Mill and workshop inspections.

 Documentation.

 Worker interviews. SOP’s. Safe working environment. Gen sets. Walk ways. Signs. EFB.

POME treatment. Emissions. Mass balance. Diesel tanks. PPE. Fire extinguishers. First aiders and boxes. Fuel and water usage.

 OSH. Training. Management structure. First aiders.

 Full document review. Completion of the checklist. Review and documentation of evidence. All aspects of RSPO P&C’s applicable.

 Worker interviews. OSH. Sexual, religious, racial harassment. Payment scheme, contracts, union labor

Phase I : Certification Audit

Date/Time Functions / areas / Department / activities to be audited (include related requirements)

28/05/ 12 Day 1st Audit

12.35 Departure from Jakarta – Lampung 13.00 Departure to Way Lunik

13.00 Break

14.30 Opening Meeting at Way Lunik

14.00 Document Review of All legal aspects 17.00 End of the day 1

29/05/ 12 Day 2nd Audit

CPO Mill I

08.00 Document Review of Environmental, Social and Best Practices Aspects

12.00 Break

13.00 Field visit at CPO Mill I 17.00 End of the day 2

30/05/ 12 Day 3rd Audit

PT Tunas Baru Lampung Estate

08.00 Document Review of Environmental, HCV, Social and Best Practices Aspects

12.00 Break

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17.00 End of the day 3

31 May 2012 Day 4th

PT Bumi Sentosa Abadi Estate

08.00 Document Review of Environmental, HCV, Social and Best Practices Aspects

12.00 Break

13.00 Field visit at Estates 17.00 End of the day 4

1 June 2012 Day 5th Audit

08.00 Reporting

12.00 Break

16.00 Closing Meeting

19.00 Departure from Lampung to Jakarta

Number of assessor participating : 5 auditors + 1 Technical Expert, totally 6 person Number of days spent for the assessment on site : 30 days

Total number of person days used for the assessment on site :18 days

Phase II : Follow up Audit

Date/Time Functions / areas / Department / activities to be audited (include related requirements)

15/10/ 12 Day 1st Audit

12.30 Departure from Jakarta – Lampung 13.00 Departure to Way Lunik

14.00 Opening Meeting at Way Lunik

14.30 Document Review

- All legal aspects

- Incoming & outgoing letter from site to head office - Procedure for communication

- CSR Program for all site

- Internal Audit Program for all site 17.30 End of the day 1

16/10/ 12 Day 2nd Audit

CPO Mill I

08.00 Document Review for previous findings for

Legal, Environmental, Social and SMK3, Best Practices Aspects

12.00 Break

13.00 Field visit at CPO Mill I & Closing meeting 17.00 End of the day 2

17/10/ 12 Day 3rd Audit

PT Tunas Baru Lampung Estate

12.00 Break

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17.00 End of the day 3

18/10/12 Day 4th

PT Bumi Sentosa Abadi Estate

12.00 Break

16.00 Closing Meeting

19.00 Departure from Lampung to Jakarta

Number of assessor participating: 4 auditors + 1 Technical expert, totally 5 person Number of days spent for the assessment on site :25 days

Total number of person days used for the assessment on site :15 days

B. 4.

Stakeholder Consultation

B.4.1. Summary of How Stakeholder Consultation was Organized

Stakeholders Consultation and Company Responses

Issue Company Responses Assessor Findings

Head of Villager Bumi aji explained the conflict of BSA estate regarding the road access to estate. The local community closed the road access to estate and claimed their ownership of the road

The company has given the compensation to the

personnel involved and also the financial donation to the three villages surround the BSA Estate

It is suggested that the methods of payment and donation

mechanism should be conducted with transparent and properly. The agreement made should be attended with the representative stakeholders.

Local community from Banjar Ratu, Tanjung Ratu and Terbanggi Besar : a. Complain regarding the

strong odor from the effluent waste from mill. b. Decreasing of water

resources in the local community area, caused by the development 12 of deep well pumps by the

a. The strong odor is not come from TBL mill but from factory near by ie. PT Budi Acid Jaya I b. The company only

develops 9 deep well pumps at the employee housing. The company delivers the clean water

a. The company is asked to communicate this issue with PT Budi Acid Jaya I,

considering that they are under Sungai Budi Group.

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company

c. The local people asked for the opportunity to be employed in the

company.

tank to help the local people in the dry season. c. The company has been

employed the local people

There is a conflict regarding the land ownership by Mr. Alwi Saleh for 68 Ha at TBL estate. Mr. Alwi and his lawyer have submitted the claimed to the court and the President of the state for the justice.

The land area is included in HGU company. Mr. Alwi has no map/data to ensure the land claimed is under company area. He has the legal documents named yellow card as an evidence of land ownership. The company said the area claimed by Mr. Alwi is out of the company ownership (company’s HGU).

The latest meeting was held on 11 January 2012 among local government, Mr. Alwi Saleh and the representative person from Company. The minutes has signed by local BPN and concluded to solve the problem with mediation.

Company is now getting involve with local community and give contribution such as financial aid for religion celebration, sport and others activity

The company admitted that they have given such financial fund for religion activity and for improving facilities.

It is suggested that the contribution is not only cash money but also the materials stuff in improve the facilities at local community. Base on the interviews with local people, they didn’t know if there were financial funds from company. So far, only certain people received it.

Regarding conflict at BSA Estate for 955,77 HA,, Head of Police Region admitted that areal now is occupied by local community. The local community claimed that the area is now belonging to them based on the a certain legal documents 9?) stated that the previous owner will give back to the local people if the tenancy period is ended. Since the tenancy period is ended, most of the local people now occupied the estates and harvest the FFBs then sell them to other mill. The local police tried do

The company is now asking the government to clarify t to he situation that people will leave the BSA estate. For the purpose of RSPO certification, the company decided to exclude the scope of this estate. They planned to change the estate from palm oil to be rubber estate

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take them out from the estate but since the

population of people is huge (around 1000 family) , the local police is gave up. Head of Police region admitted that the ownership of the land is PT TBL base on legal HGU. The legal document which kept by the local people actually is illegal after clarification from many resources.

B.4.2 List of Stakeholders Consulted

No Name Position Address

1 Moh. Ali Ka. Kampung Terbanggi Besar

2 Sujono Rukun Warga Way Kekah

3 Bazar Culture leader Terbanggi Besar

4 Ridwan Amaji Culture leader Terbanggi Besar

5 Rojali Culture leader Terbanggi Besar

6 Hasan Culture leader Terbanggi Besar

7 Adi Suryono District Head Terbanggi Besar

8 Kap. Imam Prayudi Military Commander Terbanggi Besar

9 Kompol Ridwan M. Chief Police Terbanggi Besar

10 Mustofa Vice Regent Gunung Sugih

11 H. Pairin Regent Bandar Jaya

12 Local Community Farmers BSA Estate

13 Aman S. & Sobirin Pamong Desa Terbanggi Besar

14 Firman Polsek Terbanggi Besar

15 Ismail Rais Sekretaris Kampung TBL Terbanggi Besar

16 H. Ahmad R. Supplier Terbanggi Besar

17 Edi Susendro Ketua Kelompok Terbanggi Besar

18 Zainal Abidin Vice Chief Police Banjar Ratu

19 Hermansyah Religion Head Banjar Ratu

20 Syaiful Laskar M. P. Banjar Ratu

21 Dulhadi Kaur Kesra Banjar Ratu

22 Rizal Kadus 01 Banjar Ratu

B. 5. Date of Next Surveillance Visit

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C. Assessment Findings

C. 1.

Lead Assessor’s Summary and Recommendation for Certification

The management (Mill and estate) showed the commitment to the implementation of the principles and criteria of the RSPO NI-INA. The assessment has been carried out through field visit to head office, mill and estate.

The public announcement for certification has published on RSPO website prior 30 days from the audit certification to give the opportunity to stakeholders for comments and feedback. There is no a grievance or complaints received from the stakeholders during 30 days of public consultation period. Team auditors also conducted separate meeting with village head, local community, union labor team, police officer and government official representatives. There is some clarification received regarding the conflict between company and BSA estate. BSA estate to be excluded from the scope of certification as the local community is now occupying the area. In fact, the company has the legal document of the BSA area (HGU) and now the management is waiting from the government action to deal with the local community. In the future plan, management is planning to change the palm estate to be rubber estate. In this report, some description still mention about BSA estate because the decision to exclude this estate is made when the reporting process is finished.

There are 55 NCRs found during certification audit and decrease to be 6 NCR’s minor after follow up audit. There is commitment of management to make corrective action and for continuous improvement. There is also improved plan for social and environmental area.

PT . TBL has demonstrated compliance with applicable law and regulations that relevant to Palm Oil operation. The holding group also showed compliance with partial certification, as per stated in Final RSPO certification system document, June 2007, section 4.2.4

The audit team found that PT Tunas Baru Lampung (Mill and estate) is comply against RSPO P & C approved for Indonesia. Therefore the recommendation of the Lead Auditor that Certificatre of RSPO is awarded to PT Tunas Baru Lampung Mill and estate.

Signed :

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C. 2. Summary Of The Findings by Criteria

1 COMMITMENT TO TRANSPARENCY

1.1 Palm oil growers and millers provide adequate information to other

stakeholders on environmental, social and legal issues relevant to RSPO

Criteria, in appropriate languages & forms to allow for effective participation in

decision making.

The company has the procedure in handling all information requests from stakeholders (TBL-SOP-PIT) and also procedure for retention time of certain document (TBL-SOP-MSD). All the information record and response are maintained in Information Request Form. The company has separated form for all funds for social activity. All records are maintained for 3 years.

There is a list of stakeholders which are divided base on the location (Mill, Estate and Head Office). The stakeholders list consist of department from government, religious and traditional leaders, and national and local NGO.

The company has set up the communication mechanism from estate/unit – Way Lunik (Lampung) Office and Jakarta Head office. The inconsistency of input data for information request in the forms still found at Way Lunik (lampung) Office.

Compliance status: Full Compliance

1.2 Management documents are publicly available except where this is prevented

by commercial confidentiality or where disclosure of information would result in

negative environmental or social outcomes

The company has categorized the document base on the type of stakeholders. All the documents are publicly available such as Land Titles/user rights, issue relating to environmental and social impacts, Pollution prevention plans, SOP of complaints or grievances, and CSR plans. Besides, all information for company profile can be access from website (www.tunasbaru lampung.com).

The list of confidential documents has been identified and recorded such as financial issues, MOU between company and supplier.

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2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS

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

laws and regulations.

The company has shown a list of rules associated with the last preparation on October 21st, 2012 which is list the number of rules, subject, responsible person and its implementation according to the document no: TBL-REG/UU-SAF-2012 revision 01 and the document number: TBL-REG/UU- SOS-2012 revision 01 dated October 21st, 2012. In any legislation and regulations related to company operations is made responsible person of each in accordance with their fields.

Compliance status : Full Compliance

2.2 The right to use the land can be demonstrated, and is not legitimately contested

by local communities with demonstrable rights

Documents showing ownership or lease of the land in accordance with relevant laws. The company has been able to demonstrate of the document / concession land in accordance with the existing laws and regulations. Total concession vast proven by HGU Certificate and estates license is 5.415,766 ha. Document control / concession are held as follows:

For PT. TBL estates:

No Type of Document Document Number Date of Issued Hectare

Statement 1 Estates License 522/0639/D.5/2011 May 2011 5415,766

2 SK HGU SK.39/HGU/DA/84 October, 30th 1984 3693

3 SK HGU SK.11/HGU/DA/86 January, 30th 1986 1371

4 SK HGU 05-540-08-2000 December, 29th 2000 102,826

5 Extension of SK HGU No SK.39/HGU/DA/84

60/HGU/BPN/99 June, 28th 1999 3693

6 Extension of SK HGU No SK.11/HGU/DA/86

59/HGU/BPN/99 June, 28th 1999 1371

7 HGU certificate HGU No. U.2/LT June, 28th 1985 1060

8 HGU certificate HGU No. U.3/LT June, 28th 1985 2633

9 HGU certificate HGU No. U.10/LT April, 25th 1986 1371

10 HGU certificate HGU No. U.48/LT June, 26th 2001 102,826

11 HGU certificate HGU No. U.56/LT November, 7th 2002 248,94

12 Certificate grant 412/Agr/1987 July, 31st 1987 10

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Documented system and personnel are available, there has been the responsible person to ensure that the boundary signs are well maintained and clearly. Example:

a) In PT. TBL estates are found the boundaries / concession area boundary markers are not clearly identified (broken), for example at the border with PT. GGPC in coordinates 0516430/9464817.

b) In boundaries of PT BSA estates / concession area boundary markers have no identity. Example: In pal which is bordering with buffer village in coordinates 0505943/9441770.

Compliance Status : Full Compliance

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

of other users, without their free, prior and informed consent.

Company has not had full copies of negotiated agreements and process of consent. During follow up audit, the company has made SOP to ensure that records and formal signature exist for all negotiations and related parties’ consent. Data available such as copies of agreement /records of negotiation results /land transaction agreement letter dated 10 and 14 February 2012 between PT BSA and related parties

.

3 COMMITMENT TO LONG-TERM ECONOMIC AND FINANCIAL VIABILITY

3.1 There is an implemented management plan that aims to achieve long-term

economic and financial viability

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In the 5 years estate program plan, contains Moisture conservation, Water management, Infrastructure, housing, manpower, machinery, P & D Control and Monitoring, Fire Prevention Control, Security, Block Rehabilitations, Social aspect, Environment as well as additional investments in planting trees of various species identified HCV in all areas, CSR and environmental monitoring programs, HCV management plans and other activity to meet the RSPO requirements. Long term planning for capital expenditure is recorded in a less detailed documented 5-year budget plan for year 2009-2014

The company has maintained a record of operational result and conducted an internal audit twice in a year to monitor the operation.

Monitoring of operations recorded in Internal Audit file contains checklists, SOP and operational result.

Replanting program started in 2011 for TBL and BSA estates according the management of five year estate plan and covering an area of 500 Ha in 2011 and covering an area of 500 ha in 2012.

4 USE OF APPROPRIATE BEST PRACTICES BY GROWERS AND MILLERS

4.1 Operating procedures are appropriately documented and consistently

implemented and monitored

The Company has the SOP covered from Pre-Planting to harvesting and issued by the central office in 2007 as controlled documents. There is no SOP of land clearing, it is clarified by the staff estate that no new opening and the youngest planting year was in 2011 ,

In TBL estate founded SOP of integrated pest management that does not comply with the implementation in the field. For example, for handling caterpillars fire in SOP estate by using Azodrin is injected with 10 ml / palm and it was using marshal with dose of 12 ml / palm. During the follow up audit, this findings has been improved by issuing new SOP and the dosage using refers to the pesticide standard.

Mill 1 PT. TBL already has the SOP (TBL-QC-SOP-KI dated March, 7th 2011) with 55

procedures. This SOP’s are socialized in every year especially if there is new revision from head office. Last socialization has been done in April, 13th 2012.

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content, FFA, kernel content, CPO losses and kernel losses), CPO quality analysis results, despatch of CPO, FFB, kernel, and fibre, other necessary records related to estate or mill operations.

In maintaining the system, the company conducted an internal audit which covers operational activity in the estates and mills. Internal audit activity is carried out by the internal audit team that is appointed by the company through a letter TBL-PANRSPO-IA. Audit activities is carried out on the HRD division, Social, Safety, Legal, Production, Environment, Management

Representative and Document control. The results of the internal audit are summarized in the form of "a summary of the findings of internal audit" and submitted to the relevant head section by letter 005/TBL-OPS/SR-DPPI/I/2011. Sampled checked out on internal audit year 2011 and it was found that the checklist was not covering the whole of RSPO principles and criteria. The improvement has been taken by conducting Internal audit on January 11, 2012 to ensure all areas has been audit with the checklist refer to all RSPO principles and criteria

Record of operational activities in the estate is recorded, such as daily activity, regular maintenance reports, form of FFB receiving, washing equipment checklist, plant maintenance checklist, production machine maintenance checklist, realization of the action plan ( harvesting FFB / fertilizer / conservation / P & D / Maintenance). Result of recording operations are reported monthly and then compiled to be annually report.

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

level that ensures optimal and sustained yield

The company keeps records of the soil status of the land to ensure the conformity with the fertility recommendations . Sampled of recommendation No. 251/TBL = Perl/2011 stated that recommendation is issued based on leaf analysis which is done in each year (Leaf analysis result no. MRC / VP I/TBL/0600/VI/2011). Soil analysis is conducted once in 5 years.

Sample taken from fertilizer recommendation that is issued by the company ,No. 251/TBL = Perl/2011. This recommendation is issued based on the leaf analysis which is done every year. Copy of the results of soil and leaf analysis is kept in estate and also includes records of

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The fertilizer schedule in 2012 contain fertilizing plan for each block and the type of fertilizers used such as urea, MOP, RP, Kieserite, Borat.

4.3 Practices minimize and control erosion and degradation of soils

Marginal soil map is available for each estate but it was found only the title as there is no mark in map to show as marginal areal. The company policy stated on area with slopes of more than 45% is not allowed to be planted. There are water gates in the estates to control the floods within the estate.

The company has the SOP for estate strategy in areas with a slope of more than 45% and SOP for planting on peat land.

The estates have maintenance program for road improvement that is documented and reported on the progress report in the estates, In progress report is found program road for 150 km and the progress in April is reached 34 km. For year 2013, management plans for road

improvements ( grading and culverts) are about Rp 170 million in the estate area.

The company stated and result of identification throughout the estate area confirmed that there is no peat soil at PT. Estate.

The company has SOP on Planning and Pre planting activities that include surveying, land preparation and planting strategies in peat lands. Actually, there is no peat land or marginal land in the estates area.

4.4 Practices maintain the quality and availability of surface and groundwater.

The company does not have the protection of water flow and wetlands, including keeping and maintaining river border areas. Organizations has improved by making such as SOP of

Management & Monitoring of High Conservation Value Areas (HCVA). As checked in the field, the marking boundary for river is found not completed. Some boundary have markers for 15 meters and some boundary with 50 meters.

The company has the program for enrichment planting in HCV Area. Implementation program of planting is unclear for plant height, plant density and number of plant species in accordance with the SOP. The enrichment planting was not performed on all blocks at the HCV areas. To

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HCV area.

Records of implementation of water management programs are recorded in the report of Environmental Management and Monitoring activity of the palm oil industry. The report is submitted to the Environment agency level II and level I Central Lampung Bandar Lampung province every 6 months. The wastewater treatment mechanism is done by making Waste Water Treatment Plant (WWTP). Wastewater as result of production process contains dissolved organic solids with a high concentration. Waste treatment is conducted biologically, through anaerobic, aerobic and biological control ponds. Furthermore, the liquid waste that has been processed is utilized for land application in estate. The company has the license no. 660/16. 1 / P - DOK - REV / D5 / IV / 2008 for Land application.

The program to maintain of the water environment is conducted by controlling the water pollution. It is intended to prevent, anticipate and monitor the potential of water contamination that could reduce the quality of surface water (rivers) and groundwater (the wells)

Monitoring records BOD effluent plant is in the document management and utilization report of the activities of the palm oil industry is reported to the Environment agency level II and level I Bandar Lampung province once in 6 month. The report content is BOD measurements record in every month, stated in the certificate analysis of waste water by Health Polytechnic Laboratory of Health Ministry Tanjung Karang. The institution does not has accreditation from National

Accreditation Committee ( KAN ), but it is a referral laboratory from Governor Bandar Lampung Provincial Level.

Land application of BOD monitoring records, is in the document management and report of environmental monitoring activities for oil and BOD parameter monitoring wells is not in the record. Where are reported to the agency every 3 months. BOD measurements record each month for the land application and for monitoring wells once in 6 months

The company has appointed Sungai Budi Group in cooperation with the Institute of research and Bandar Lampung industry standardization, the employment contract letter No. 052 / SBG / I / 2012 about cooperation sampling, laboratory analysis of wastewater tests.

Where the Industrial Research and Standards Bandar Lampung has been accredited by the No. KAN. 2230 / 3.a2 / LP / 05/12

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Records of water use monitoring for mill per tone of FFB can be seen on the monitoring of water debit is recorded daily and recording of monthly report recap is attached to the report of

management activity and monitoring of environmental activity of the palm oil industry.

4.5 Pests, diseases, weeds and invasive introduced species are effectively

managed using appropriate Integrated

Documented IPM plan is available in the SOP of Pest management (TBL-SPO-KKL-PHT) , The IPM includes monitoring of bagworm, rat census, barn owl population census and planting of beneficial plants, Use of barn owl boxes, Tunera and Cassia and limited use of pesticides. Field inspections show extensive planting of Tuners and Cassia alongside most of the roads.

Pest control is arranged refers to documented IPM program includes work program, schedule of IPM activity and IPM realization record.

In TBL estate, controlling of pests such as fire caterpillars is conducted in April 2012. The report showed in 03 sample points are founded 600 caterpillars fire and the controlling with using chemicals called marshal. In SOP, there is no procedures of using marshall for fire caterpillars. Data showed in the monitoring map, There were fire caterpillar attacked in April 2012 which affected 323 Ha area for 43.928 trees by using 68.11 liters marshal. Pests Census are conducted in accordance with the annual budget and annual work program that has been compiled annually for pest control. Meanwhile, pest control in the SOP does not cover the control mechanics, biology and chemistry. There is no data found for records of training for personnel who handle IPM in TBL and BSA estate. There is no data found for records of monitoring pesticide toxicity unit (LD50 material per tone of FFB or per hectare) in the TBL and BSA estates.

Compliance status: Minor NCR no. 2

4.6 Agrochemicals are used in a way that does not endanger health or the

environment. There is no prophylactic use of pesticides, except in specific

situations identified in national Best Practice guidelines. Where agrochemicals

are used that are categorized as World Health Organization Type 1A or 1B, or

are listed by the Stockholm or Rotterdam Conventions, growers are actively

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The list of chemicals used such as Andal, Graso, DMA, and Meta prime is registered and in accordance with that permitted by the agency of Agriculture number 07 / Permentan / SR. 140 / 2 / 2007 ( terms and procedures for pesticide registration) and regulation of agriculture minister number 42 / Permentan / SR. 140/5/2007 ( the control of pesticides)

The records of using pesticide used is available. The records contains type and quantity of using pesticide, the extent of the application area and the number of applications per year. An example for controlling weeds is by using graso 0.6 liter mixed with 20 liters of water and then use for spraying for 2 ha within 6 months.

Agrochemical usage instructions is found in the label and MSDS and is found appropriate with the species target and dose. There is no data found that organization has given the relevant training in handling chemicals for personnel on duty in the storage. As response to this, the company has conducted the training on October 3rd, 2012, attending by participants from PT. TBL .

The pesticide packaging waste is stored in temporary shelters warehouse of Hazardous material and company has a permit from the Department of Environmental, Government Central with no. 660/35 / KPTS - IPS - LB3 / 2010. For pesticide packaging waste is returned to the manufacturer of agrochemicals. The organization has reported the balance sheet waste of Hazard Toxic Material to the environment agencies and Lampung Province Level I in accordance with regulation PP 18 of 1999 section 11.

Organization does not use the materials chemicals, which is categorized in type 1 A and 1 B WHO, but by using a chemical substance listed in the licensing ordinance of Agriculture Minister No.07 / Permentan / SR 140/2/2007

Employees medical check up are carried out every 3 months by a physician of PT. Tunas Baru Lampung clinic for operators who affected directly from the work environment. The scope of the medical check up are includes pulmonary tuberculosis, cardiac, ENT, Eye, TB / BB / GO and blood pressure. Medical check up for thorax Rontgen and Chlorinnesterase analysis have been conducted by Prodia Laboratory on August, 2nd 2012 . The data of medical check-up is

available, contain of summary results of medical check-up applicators of pesticides, laboratory test results and manual inspection of medical check up.

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4.7 An occupational health and safety plan is documented, effectively

communicated and implemented

All companies being audited have established OHS Policy, which is part of other company’s policies. The company policy is set by the Head Office and signed by the President Director on 4 January 2008, and applicable to all the group’s companies. The OHS Policy has defined the key objectives of preventing accident and work-related disease. Unfortunately, when audited all the company’s sites do not have evidences that socialization has been conducted to employees, suppliers, and visitors. This is established as a nonconformity.

With reference to criteria 4.7.1 above, the implications are that the Company has established P2K3 Team to comply with the provisions of the Regulation of the Minister of Manpower (Permenaker) No. 04/MEN/1987. With the establishment of P2K3 Team, Company has automatically appointed persons responsible in the safety program, where one of them is the P2K3 Secretary who must be certified Safety Expert. However, in all existing P2K3 Team the secretary has not received training and assignment as Safety Expert. In addition, the three Company’s sites, i.e. PT. TBL Estate Unit, PKS1 Unit and PT. BSA Unit, the P2K3 Team established has not conducted monthly routine meetings in accordance with the Minister of Manpower No. 155/1984. The PT. BSA P2K3 Team has even not been approved by the Manpower Department. These three are established as a nonconformity.

As specified in in the Collective Labour Agreement (CLA) Chapter VII, Article 20 on social security, Company includes any employee with the status of Permanent worker (KT) and Permanent day worker (HT), to participate in the Worker’s Social Security. Program they are included in is Accident Compensation (JK), Death Compensation (JKM), and Old Age Pension (JHT). For Casual worker (BHL), only those persons working as a sprayer (chemist), harvester, and fertilizer applicator, are included in Jamsostek JK and JKM programs.

During the audit, there is evidence in the form of the Name List of Jamsostek Participant (KT and HT). Their monthly pay check includes JK and JKM items paid by Company. For BHL workers the evidence of their participation is found on the List of Open Policy Participant whose premium is paid monthly.

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Company.

Regular health examination either in TBL estate, PKS1 and BSA is carried out by dr. Hakikiyah, the doctor of the Clinic which is located in TBL Terbanggi. Routine examination is scheduled once a year for the PKS employees, except for boiler operator which is scheduled once every 6 months. For the estate’s workers, all are scheduled every 6 months, for both Permanent worker (KT), and Permanent day worker (HT). Specific to Casual worker (BHL), there is no routine health examination, despite the potential health hazards, such as sprayer personnel. But if the BHL is sick, they will be served by the clinic for examination and medication, at no charge. According to the provisions in the regulation, the sprayer personnel should get their cholinesterase concentration checked. In addition, even for KT and HT workers who get the examination, the laboratory aspect is not inclusive. Moreover, it is unclear whether the examiner doctor has been certified hiperkes as specified in regulations. All of these findings are issued as a nonconforming finding.

Company has a facility of clinic led by a hiperkes certified doctor. In addition to health examination service according to the patient visit, the clinic conducts periodic health examination that can be handled. The clinic has obtained a permit from Health Department, issued in the name of Polyclinic Tunas Baru Lampung Terbanggi. All records of doctor examination are kept. For TBL and PKS1 Estate, Company has developed risk analysis of occupational health and safety for existing work processes in each company. For TBL Estate, the records of analysis results are contained in Hazard Identification, Risk Assessment and Control Form, which is prepared on 26 April 2012 by Safety Unit, and approved by the Estate Manager as Chairman of P2K3. For PKS1, risk analysis has also been recorded in the same forms. Risk analysis is carried out by Safety Coordinator and created as of 1 May 2012.

As for the PT. BSA, the risk analysis has not been prepared. Another thing that is a drawback is that the risk analysis that has been prepared, both TBL Estate and PKS1, does not cover any of company’s existing processes and is not based on a structured preparation. These three things have been established as a nonconformity.

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Emergency preparedness has been established as key P2K3 program in both PKS1 and TBL Estate. This commitment is demonstrated by forming an emergency response team, i.e.:

1. PKS1 has established the PBK Team (Fire Hazard Response Team), the Emergency Response Team Structure was established on 1 July 2012 and approved by the Plant Manager. 2. TBL Estate has established the Fire Control Organization Structure and signed by the Estate Manager.

3. PT. BSA has established the Fire Organization Structure in 2012, signed by Ass. Project and acknowledged by Estate Manager.

In addition to establishing an emergency response team, the Company has also issued procedures as a guide in handling emergencies occurred, i.e.: (1) SOP of Security and Fire Hazard Mitigation (K3-PMKS-014, rev.0) which applies only in PKS1 and (2) SOP of Emergency Handling (TBL-SOP-PSD-2012), which applies to all Estate under TBL Group. Both SOPs have identified any potential emergency that must be addressed, which include: fires and explosions, earthquakes, bomb threats, occupational accidents, riot / civil commotion, robbery / hold-up, a suspicious letter or package, and hazardous spills, post-emergency situations

Company has provided provides training to emergency response team members which was provided by the Company's internal. Several types of training that have been attended, among others: training with the estate fire control team, emergency response, fire control/extinguishing, and security training.

Equipment to face emergency conditions has also been prepared and placed in strategic places. In PKS1 there are 32 portable fire extinguishers and 7 points of hydrant. It is also equipped with bakortiba. As for the TBL and BSA Estate, emergency response equipment comprises the water tank and engine unit, communication radio, binoculars, and portable fire extinguisher; the office is also equipped with "bakortiba" – in the form of drums filled with sand, wet gunny. Periodic equipment inspections are conducted monthly for all equipment. In the TBL Estate there are fire monitoring tower at the site of Division II Block 59.

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plug, boots/safety shoes, safety gloves, safety glasses, welding goggles, and apron (chest protection from heat). The provision of PPE depends on where workers work. For example, the pesticide sprayers are supplied with boots, masks, goggles, and rubber gloves, and are required to wear a shirt with long sleeves to protect from exposure to pesticides. The harvesters are supplied with boots, helmet, and fabric gloves. PKS workers, such as boiler operator, are provided with helmets, safety shoes, ear protectors and chest protector (apron). However, when site visit was carried out, the wheelbarrowers are found not wearing boots. In PKS1 company checks the availability and fitness of PPE per month for each work area, and recorded on the form Personal Protective Equipment Examination, conducted by the foreman and acknowledged by the Chairman of P2K3/Mill Manager.

The company has provided First aid kit in the workplace. First aid kit for the Estate, TBL and BSA, are provided in each Estate office and each foreman also bring First aid kit to the workplaces in the estate. As for the PKS1, First aid kit is placed in the office, cap stand, screw press, clarification, kernel plant, boiler station, engine room, scoda and turbines, factory post, spare part warehouse and oil warehouse / Hazardous waste temporary storage area.

In addition, the Company has a clinic attended by a doctor and a paramedic. The clinic is already obtaining approval from the Head of Manpower and Transmigration Department of Lampung Province No. Kep. 566/4257/III.5/02/PPKK/IX/2011, on Certification of Company Occupational Health Services Operation (PPKK) of PT. Tunas Baru, Central Lampung, Lampung Regency dated 6 September 2011.

Related to compliance with health and safety equipment, some deficiencies are still found. During the audit, there are findings, among others, the clinic does not have an ambulance, the tension meter is not calibrated, paramedic has not been hiperkes certified, number and contents of first aid kit have not been according to the provisions of the Regulation of the Minister of Manpower, and a worker was found not using boots PPE. All of this is established as a nonconformity finding.

All companies, PKS1, TBL Estate and BSA Estate, do not have field first aiders who have received training. There is no a special designation of field first aiders yet. Even the foreman did not bring first aid equipment in their workplace and this is established as a nonconformity.

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insurance claim follows the format of KK2 jamsostek, and other formats. If there are accidents, the following will be produced: the Certificate contains the chronology only, and Work Accidents Minutes contains the chronology only. But, both have not conducted the investigation of the accident to ascertain the cause, establish corrective/preventive action, and the appointment of the person in charge of such repairs according to the schedule. This is established as a nonconformity finding.

Compliance Status : Minor, see NCR no. 02, 03, 04

4.8 All staff, workers, smallholders and contractors are appropriately trained.

The company, for BSA Estate, has no SOP for organizing training. All trainings attended are only at the invitation from the Head Office. There is no developed training program. Both are established as the findings (see No. NCR. 40). The training for harvesters, sprayers is just in the form of a briefing of the foreman and field assistant, but there is no documented evidence, so that the records of training attended also does not exist. This is established as a nonconformity. PKS1 and TBL Estate have established Employee Training SOP (19/TBL-SOP-PKS-PK). There is a training program contained in PKS-I/PP-001 form, approved by the Manager. The appointment of candidate participant is discussed first in a meeting by the management. When the meeting is over the minutes is made, and a Program is developed. The existing programs are mostly an internal training (including from the Head Office).

Some form of training ever followed by employees, among others: - fire handling/control training,

- safety norms socialization - operation of the boiler machine - security guard training

- RSPO and ISO socialization - environmental training on waste - candidate safety expert training - handling of production machines

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Compliance Status : Minor, see NCR no. 05

5 ENVIRONMENTAL RESPONSIBILITY AND CONSERVATION OF NATURAL

RESOURCES AND BIODIVERSITY

5.1 Aspects of estate and mill management, including replanting, that have

environmental impacts are identified, and plans to mitigate the negative impacts

and promote the positive ones are made, implemented and monitored, to

demonstrate

The document of impact assessment of palm oil milling operations is the UKL UPL with the approval of No. 660/16. 1 / P-DOK - REV / D.5 / IV / 2008 where every 3 years its approval should be extended. In this case, to date the organization has not yet extended its approval. Impact assessment documents for the activities of palm oil estate with the approval of the EIA document No. 660/21 / P.DOK / LTD 4 / IX / 2004 with business activity of industry of palm oil fruit processing into CPO.

The document has been extended with the evidence of a letter from BLH of Central Lampung Regency on recommended revision of UKL UPL No. 660/20 / R - Rev.UKL-UPL / LTD.8 / 2012 and evidence that UKL UPL documents exist.

Organizations have to manage the environment on the activities of palm oil mill which consists of the management of air quality, dust and noise, solid waste management, liquid waste management, management of hazardous and toxic waste (B3). Management is in accordance with the environmental document UKL UPL where in every 6 months made report of management and environmental monitoring, reported to the office environment level II Central Lampung and level I Bandar Lampung Province.

The records of environmental management of the estate activities comprise water environmental management (ground water and surface water), air environmental management, hazardous waste management, conservation of vegetation and flora and fauna where the environmental management of palm oil estate activities conform to the EIA document where every 3 months the record report of environmental management and monitoring implementaion is made.

The organization has revised the UKL UPL document of palm oil mills in 2005 into UKL UPL 2008 due to changes in CPO production capacity from 54,000 tons per year to 165,600 tons per year.

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5.2 The status of rare, threatened or endangered species and high conservation

value habitats, if any, that exist in the estate or that could be affected by estate

or mill management, shall be identified and their conservation taken into

account in management plans and operations

The Company has identified protected species in analysis book form and identification the presence of high conservation value (HCV) both in the estates area PT. Tunas Baru Lampung and PT. Bumi Sentosa Abadi. In TBL estates have created programs and procedures for handling RZ (riparian zone). Based on the identification of the HCV assessor from Institute Agriculture Bogor, RZ contained in PT. TBL is categorized of HCV 4.1. The work program has been created in the form of tables which is done on each type of activity. Types of protected flora and fauna are protected in PT. TBL is Pulai, ground orchid (CITES Appendix II), kuwuk cat, civet (CITES Appendix III) and black eagle.

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

socially responsible manner

List of Identification of aspects and impacts, and control has been created and evidence of field implementation for PT. TBL palm oil mills and palm oil estate has been in compliance.

Waste management plan is documented and implemented based on identification to avoid and reduce pollution has existed, one of them is the monitoring report of palm oil mill waste water utilization implementation in PT. Tunas Baru Lampung palm oil estate.

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Hazardous waste from palm oil activities i.e. used oil and used pesticide packaging are managed by storing them in hazardous waste temporary storage, and then used pesticide packaging is returned to the pesticide producers in accordance with the Joint Decree between the company and the provider of materials that the packaging can be sent back to the producers. Waste of used oil is combined and sent to the head office and handed to hazardous waste collector company (PT Karya Gemilang Bersama). The organization makes a report of the combined hazardous waste and submitted to the environmental agency of level II and level I of Bandar Lampung Province.

Record of monitoring/analysis of waste from palm oil mill activities is contained in the certificate of analysis of Laboratorium Politeknik Kesehatan Kemenkes Tanjung Karang for wastewater quality and the Bandar Lampung Center for Industrial Research and Standardization for air quality, where the certificate is attached to the report of environmental management and monitoring of palm oil industrial activity.

5.4 Efficiency of energy use and use of renewable energy is maximized

Use of solid waste from palm oil activities of PT. Tunas Baru Lampung like shells, fibers, originating from the treshing, burned as boiler fuel, where its efficiency to produce 1 ton of CPO will require mixed fuel of 90 kg fiber and 20 kg shell with the energy generated of 342.000 calories. The use of solid waste is recorded in the report of environmental management and monitoring of palm oil mill activities.

The operation of 450 KVA generor requires diesel fuel consumption where the average use is around 85 liters per hour. For boiler activity with CPO product of 1 ton per hour requires 34 liters of diesel fuel with energy generated of 340.000 calories. The record of diesel fuel use per day is recapitulated in a month.

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

except in specific situations, as identified in the ASEAN guidelines or other

regional best practice.

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fighter team) and facilities in supporting the operation.

Field visit, interview with workers, stakeholders, SOP’s and manager interviews confirm that the previous crop is felled down, chipped, shredded and spread. No evidence of burning anywhere on any operating units.

Compliance Status: Full Compliance

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

developed, implemented, and monitored.

There is no evidence of identification of pollution and emissions sources in palm oil mill from the stationary source emissions activity of generators and boilers, and for mobile source emissions is derived from transportation cars.

There has been a list identifying pollution sources and emissions of PT. TBL palm oil mill and has been implemented in the field

Emission air quality measurements are performed on the stack of generator, boiler 1 and boiler 2. The results of measurements taken by the Poleteknik Kesehatan Kemenkes Tanjung Karang, environmental health department, at the measurement point indicates that the quality of emission air of boiler and generator stacks are still below the threshold limit of quality standards specified in the regulation of the State Minister of Environment No. 07/2007 regarding quality standards of emission from stationary sources for boiler (palm fiber/shell fired) and the regulation of the State Minister of Environment No. 21/2008 on emission quality standards for thermal power plant business and/or activity.

The monitoring of the quality of emissions from sources of pollution and emissions were recorded in the certificate of analysis of exhaust gas emissions from generators and boilers. Measurement is conducted every 6 months and reported to the Environmental Agency of level II and level I of Bandar Lampung every 6 months.