PT. MUTUAGUNG LESTARI
Verification 12 August 2019
3.4.2. Identification of Findings, Corrective Actions and Opportunity for Improvement and Noteworthy Positive Components at Remote Audit ASA 1.1
NCR No. : 2020.01 Issued by : Haikal Ramadhan
Kharismansyah Date Issued : 24 July 2020 Time Limit : Next Surveillance
NC Grade : Minor Date of Closing :
Standard Ref. &
Requirement : 2.2.2
All contract, including those for FFB supply, contain specific clause on meeting relevant legal requirements and this can be demonstrated by the third party Evidence observed (filled by auditor):
Based on the document review, it is known that several activity were submitted to third parties / contractors, for example for spraying, loose fruit picker, and FFB transport. The relationship between the company and the contractor is stipulated in the Cooperation Agreement that has been agreed by both parties. In the agreement letter shown, for example SPK No26 / PJE / SPK-ATC.MRU / VI / 2020-Spraying there is no specific regarding the compliance of applicable legal obligations. In addition, there is no evidence of compliance with regulations by the third party (contractor) concerned, for example in terms of health and employment insurance, as well as the implementation of OHS aspects.
Non-Conformance Description (filled by auditor):
The certification unit has not been able to show sufficient evidence that the agreement letter with the third party has a specific clause regarding the compliance of applicable legal obligations along with proof of this clause by the third party concerned.
Root Cause Analysis (filled by organization audited):
The company does not understand that the inclusion of a legal obligation fulfillment clause must be written in the agreement letter.
Correction (filled by organization audited):
Include a clause fulfilling legal obligations in the agreement letter. And provide an understanding to the contractor regarding the obligations that must be fulfilled by the contractor, such as proof of employee participation in the BPJS Corrective Action (filled by organization audited):
Make a memo from the Area Controller regarding the inclusion of the clause "compliance with applicable legal obligations" must be in every SPK / new contract and understood and implemented by the contractor before signing a new contract.
Assessor Evaluation and Conclusion (filled by auditor):
Verification on 17 September 2020
The company shows evidence of improvement in the form of:
1. Socialization to five representatives of the contractor regarding the fulfillment of the law dated August 21, 2020 held at Pelanjau Estate.
2. Letter number COBC-V / 035 / SPO / IX / 2020 dated 19 September 2020 from the Marau Area Controllrer regarding the obligation to include clauses on compliance with relevant laws in each agreement letter and the obligation to sign the Contractor's Code of Business Ethics
However, it has not been able to show:
1. An example of proof of compliance with applicable laws by a third party is for example in terms of meeting the minimum wage for employees and BPJS membership.
PT. MUTUAGUNG LESTARI
RSPO ASSESSMENT REPORT
2. A mechanism to ensure that all contractors who have a cooperative agreement can demonstrate the compliance clause of the law
3. Examples of implementation of complying with these law-abiding clauses Auditor Conclusion :
Non-conformities are declared unfulfilled Verification 25 March 2022
Based on the results of document review, it is known that there are several jobs in the management unit that are handed over to third parties / contractors. For example replanting work, transporting CPO and PK. There are several third parties registered in each unit as follows:
No. LBF LBE AWE PJE
1 CV. Transpilar Tiga CV. Enggang Borneo PT. Meta Estetika Graha PT. Meta Estetika Graha 2 CV. Anugrah Putra
Sejati CV. Disha Rafa Mandiri CV. Tangga Batu Permai PT. Roswell Karya Abadi
3 CV. Rifa PT. Roswell Karya Abadi PT. Karya Murni Prima
4 CV. Ridzki Putra Bungsu CV. Tunas Inti Pratama
5 CV. Anaroga PT. Karya Murni Prima
6 CV. Tangga batu Permai
For example, SPK No. 009/Replanting/SNP-AWE-LBE/VI/2018 dated 29 June 2018 between PT Sandika Nata Palma and PT Roswell for replanting activities in the AWE, PJE, and LBE areas with a validity period of up to 31 December 2021. Those who received revisions and contract extensions through LOA No. O/Ref: 005/MMTC- AWD/VII/2020/Plant until December 2023. In the contract it has included several obligations related to compliance with regulations starting from BPJS participation, use of PPE, SIO ownership, SIM and so on according to applicable law in Indonesia. Indonesia.
Management unit shows PT RKA's Replanting Work Evaluation & Report Card document period of July 2021.
Contents of the evaluation of activities carried out are more focused on technical replanting work carried out by PT RKA but have not included evaluation or monitoring related to compliance with regulations (laws) carried out by contractors such as BPJS Payments to RKA Workers, Monthly Wage payments, provision of PPE, ownership of SIO (work permit) for each Operator.
The company has not been able to show sufficient evidence that the fulfilment of the clause as written in contract has been proven to be fulfilled by the concerned third party.
Non-conformities are declared unfulfilled Verified by
NCR No. : 2020.02 Issued by : Haikal Ramadhan
Kharismansyah Date Issued : 24 July 2020 Time Limit : Next Surveillance
NC Grade : Minor Date of Closing : 17 September 2020
Standard Ref. &
Requirement : 2.2.3
All contracts, including those for FFB supply, contain clauses disallowing child, forced and trafficked labour.
Evidence observed (filled by auditor):
PT. MUTUAGUNG LESTARI
RSPO ASSESSMENT REPORT
Based on the document review, it is known that some activity has been submitted to third parties / contractors, for example for spraying, loose fruit picker, and FFB transport. The relationship between the company and the contractor is stipulated in the Cooperation Agreement that has been agreed by both parties. In the agreement letter shown, for example SPK No26 / PJE / SPK-ATC.MRU / VI / 2020-Spraying but there is no spesific clause regarding prohibiting practices involving forced labor and workers from human trafficking
Non-Conformance Description (filled by auditor):
The unit of certification has not been able to show sufficient evidence that all cooperation contracts with third parties have their own clauses on prohibiting practices involving forced labor and workers from trafficking in persons Root Cause Analysis (filled by organization audited):
So far, the prohibition of involving child labor, the practice of forced labor and the use of workers from human trafficking has only been conveyed orally in every socialization of human rights policies and the Code of Conduct.
Correction (filled by organization audited):
Provide specific understanding on the prohibition of involving child labor, forced labor and workers from human trafficking to contractors. In addition, the contractor is required to sign the Code of Business Ethics and the Vendor Integrity Plaque which has prohibited the involvement of child labor, forced labor and workers from human trafficking.
Corrective Action (filled by organization audited):
Make an appointment from the Office of the Area Controller which requires all units that each submission of a Contract or contract extension so that all contractors can understand the Vendor Code of Business Ethics document and the Vendor Integrity Plaque document and must be signed by the contractor.
Assessor Evaluation and Conclusion (filled by auditor):
Verification on 17 September 2020
The company shows evidence of improvement in the form of:
1. Socialization to five representatives of the contractor regarding the fulfilment of the law dated August 21, 2020 held at Pelanjau Estate.
2. Letter number COBC-V / 035 / SPO / IX / 2020 dated 19 September 2020 from the Marau Area Controllrer regarding the obligation to include clauses on compliance with relevant laws in each agreement letter and the obligation to sign the Contractor's Code of Business Ethics
3. 3. Annex of the Vendor Code of Business Conduct Minamas Plantation, among others, states the protection of children and the elimination of child labor and the eradication of exploitation including forced labor and human trafficking
4. VIP (Vendor Integrity Pledge) signatories, for example by CV Adnan Jaya Auditor Conclusion
Based on root cause analysis, correction, and corrective action of non-conformities are declared comply Verified by Haikal Ramadhan Kharismansyah
NCR No. : 2020.03 Issued by : Moh Arif Yusni
Date Issued : 24 July 2020 Time Limit :
02 October 2020
NC Grade : Major
Date of Closing : 29 September 2020
PT. MUTUAGUNG LESTARI
RSPO ASSESSMENT REPORT
Standard Ref. &
Requirement : 3.8.5
Documented Procedures
The mill shall have written procedures and/or work instructions or equivalent to ensure the implementation of all elements of the applicable supply chain model specified. This shall include at minimum the following:
a. Complete and up to date procedures covering the implementation of all elements of the supply chain model requirements
b. Complete and up to date records and reports that demonstrate compliance with the supply chain model requirements (including training records)
c. Identification of the role of the person having the overall responsibility for and authority over the implementation of these requirements and compliance with all applicable requirements. This person shall be able to demonstrate awareness of the mill's procedures for the implementation of this standard.
d. The mill shall have documented procedures for receiving and processing certified and non-certified FFB's including ensuring no contamination in the IP mill.
Evidence observed (filled by auditor):
Based on documents verifications Lembiru Mill have a written procedures and/or work instructions or equivalent to ensure the implementation of SCCS, that described in the Manual SCCS Manual RSPO SCCS SCCS-
Std/RSPO/PSQM/02, dated 02 January 2018, however based on review it was known if:
1. It still contains references to the RSPO Supply Chain Certification Standard 2017 and has not used the latest standards
2. Acceptance of FFB, in the FFB acceptance procedure, the mechanism for receiving certified and non-certified products from suppliers. The SCCS procedure that is owned by the company has not been explained about - Mechanisms and implementation in the field related to the separation of FFB from areas that are RSPO
certified and uncertified, especially in blocks whose areas are divided between certified or uncertified areas - Method of recording / documenting receipt of certified and uncertified FFB at Pelanjau Estate
3. Regarding Registration of Transactions, which has not regulated Shipping Announcement with a maximum time limit of not more than three months from dispatch
Non-Conformance Description (filled by auditor):
Not all elements in supply chain implementation have been covered in the RSPO Supply Chain Procedure.
Root Cause Analysis (filled by organization audited)
There is a transition period caused by the PIC that has been designated to be responsible in the implementation of SCCS has resigned.
Correction (filled by organization audited):
Appoint a new PIC to coordinate with other areas to update and revise supply chain procedures following the new standards.
Corrective Action (filled by organization audited):
Scheduling socialize the SOP to related parties directly at the end of September 2020.
Assessor Evaluation and Conclusion (filled by auditor):