E.4 Purchasing and goods in .1
3. Implementation of Certificate and Trademark is not used on product X or√
ASA-1 The CH did not use trademark and/or RSPO logo √
Status: Comply
4. Controlling of Certificate and Trademark, including withdrawing inappropriate logo. X or√
ASA-1 The CH did not use trademark and/or RSPO logo √
Status: Comply
RSPO – 4006a/1.0/26072018 Page 64 Prepared by Mutuagung Lestari for Mulia Oil Mill – PT SEPANJANG INTISURYA MULIA subsidiary of Genting Plantations
3.4. Summary of RSPO Partial Certification.
Compliance of the uncertified management units of Genting Plantation Bhd against the rules for partial certification was determined through Self-Assessment in accordance with RSPO Certification System clause 4.2.4. A summary of findings is as stated below.
Genting Plantation Bhd Time Bound Plan (TBP) is explained in table 1.10. Genting Plantation Bhd has 32 management units with 15 mills. Genting Plantation Bhd has informed the TBP progress, MUTU has considered that Genting Plantation Bhd is complied with the RSPO requirement for TBP. The Time Bound Plan was revised and declared by Genting Plantation Bhd on 12 Feb 2019.
MUTU has verified partial certification for un-certified unit’s subsidiary of Genting Plantation Bhd based on their Time Bound Plan. There are 8 uncertified mills and 30 uncertified estates of Genting Plantation Bhd. MUTU Auditor verified positive assurance against the company internal audit and supporting evidence as well as any information from others sources.
MUTU Auditor has verified company partial certification and concludes that:
There is no significant land conflicts which have not been declared above
The company has follow RSPO requirement related to New Planting Procedure and Remediation and Compensation Procedure.
There is no labour disputes that are not being resolved through an agreed process
All plantations established since 2005 have been done so in accordance with the applicable laws of the country and that there is no evidence of non-compliance with law in any of the non-certified holdings which has not been declared above
Un-Certified Units or Holdings
Section Requirement Concerns to Discuss, if any
2.1.1 Did the company conduct an internal audit? If so, has a positive assurance statement been produced?
Yes and positive assurance is developed under Genting Plantation Bhd
Auditor verification
Based on the document review, there is a company pre audit that was conducted by SGS and the positive assurance is at this table that is also been verified.
2.1.2 No replacement after dates defined in Nis Criterion 7.3 of:
Primary forest.
Any area identified as containing High Conservation Values (HCVs).
Any area required to maintain or enhance HCVs in accordance with RSPO criterion 7.3.
Total of 4 LUCA was submitted to RSPO Secretariat.
PT SISM, PT GAL, GKCE & GJBE
PT SISM: Social remediation (Concept Note submitted to RSPO in November 2016. Pending review & approval by Panel.
PT GAL: Noncommercial clearing. LUCA pending approval by Panel.
GKCE: ~498 Ha for compensation. LUCA pending approval by Panel.
GJBE: Social remediation (487 Ha). LUCA pending approval by Panel.
RSPO – 4006a/1.0/26072018 Page 65 Prepared by Mutuagung Lestari for Mulia Oil Mill – PT SEPANJANG INTISURYA MULIA subsidiary of Genting Plantations
Auditor verification
Based on evidence, the Genting Plantation Group has followed the requirement of RSPO.
2.1.3 Any new plantings since January 1st 2010 must comply with the RSPO New Plantings Procedure.
NPPs have been submitted for new plantings since Jan 2010. The latest NPP was published on RSPO website on 13 July 2016 for Genting Jambongan Estate in Sabah for an expansion of the estate areas.
2.1.4 Any Land conflicts are being resolved through a mutually agreed process, e.g. RSPO Grievance procedure or Dispute Settlement Facility, in accordance with RSPO criteria 6.4, 7.5 and 7.6.
No outstanding land conflicts Auditor verification
Based on evidence provided, the company merely conducted planting on the area that has been compensated from the land owner by FPIC. The documentation of each land compensation/leasing is documented.
2.1.5 Any Labour disputes are being resolved through a mutually agreed process, in accordance with RSPO criterion 6.3.
There is no labor disputes. There is no information from public source and RSPO website on any labour conflict for uncertified unit of the group subsidiaries.
Auditor verification
There is no indication of labor disputes.
There is no information from public source and RSPO website on any labour conflict for uncertified unit of the group subsidiaries and also from stakeholder consultation during 1st surveillance audit of the PT SIsM and PT SMA.
2.1.6 Any Legal non-compliance is being resolved in accordance with the legal requirements, with reference to RSPO criteria 2.1 and 2.2.
Yes, there is process for land legality.
Auditor verification
Land legal process is still going on and there is a detail update progress documented by the company for each year.
RSPO – 4006a/1.0/26072018 Page 66 Prepared by Mutuagung Lestari for Mulia Oil Mill – PT SEPANJANG INTISURYA MULIA subsidiary of Genting Plantations
3.5 Identification of Findings, Corrective Actions, Observations, Opportunity for Improvement and Noteworthy Positive Components.
3.5.1 Identification of Findings, Corrective Actions and Observations at Initial Assessment
NCR No. : 2017.01 Issued by : All Auditor
Date Issued : 20 October 2017 Time Limit : Before the certificate is issued
NC Grade : Major Date of Closing : 7 July 2018
Standard Ref. &
Requirement
: 2.1.1.
There should be evidence of compliance with relevant laws and regulations.
Non-Conformance Description & Evidence observed (filled by auditor):
There is no evidence that compliance with laws and regulations has been implemented.
1. The Company has not been able to show the structure and scale of wages in accordance with Regulation of Labor Ministry No.1 of 2017.
2. There has been no revision of P2K3 Structure in PT SISM and PT SMA, as well as its approval by the relevant agencies in accordance with Regulation of Labor Ministry No. 04 of 1987.
PT SMA
Based on employee data of PT SMA on September 2017, it is known that there are 34 Free Daily Worker who do not have contract with the workers. This is not in accordance with Ministerial Decree No. 100 of 2004 Article 12.
Root Cause Analysis (filled by organization audited):
1. The wage scale structure is still in the preparation stage.
2. SHE officer is new, and has not received OHS expert training
3. HR of PT. SMA considers for temporary labor does not require a written agreement Correction (filled by organization audited):
1. Completed the wage scale structure document.
2. If there is a change of management immediately change the structure and requested approval to the Manpower Agency. HR will perform the change of management of P2K3, as well as train SHE Office that does not have OHS Expert Certificate.
3. Every new employee is created a Work Agreement Letter Corrective Action (filled by organization audited):
1. Completed the wage scale structure document.
2. Revise the structure of P2K3 SISM and SMA
3. Creating a letter of employment agreement for 34 Daily Dedicated Employees Assessor Evaluation and Conclusion (filled by auditor):
Verify May 9, 2018
The Company shows some evidence of improvements as follows:
1. Head of Regional Decree No. 004 / SISM / HR / SK-U / X / 2017 dated October 1, 2017 concerning Structure and Wages Scale of PT Sepanjang Intisurya Mulia. In the appendix the decree details the wage structure and scale of the level of the daily employee of the Head of Regional. In addition, the letter has been reported to the Ketapang Manpower and Transmigration Office dated January 9, 2018 and was socialized to employees on February 3, 2018.
2. Decree of the Head of Manpower and Transmigration Office of Ketapang Regency. 121 / NAKER / TAHUN 2017 dated December 6, 2017 on P2K3 Ratification of PT SISM. With an organizational structure: Chairman M. Riduan,
RSPO – 4006a/1.0/26072018 Page 67 Prepared by Mutuagung Lestari for Mulia Oil Mill – PT SEPANJANG INTISURYA MULIA subsidiary of Genting Plantations
Secretary: Harmadi, Member consists of 12 people from the mill and estate. The new secretary attended the General AK3 training by PJK3 Gadjah Mada Yogyakarta on 12 - 24 February 2018. (Certificate of Public Safety Expert from Menaker RI will be verified on the next appraisal).
3. Head of Regional Decree No. 002 / SMA / HR / SK-U / X / 2017 dated October 1, 2017 concerning Structure and Wages Scale of PT Sepanjang Intisurya Mulia. In the appendix the decree details the wage structure and scale of the level of the daily employee of the Head of Regional. In addition, the letter has been reported to the Ketapang Manpower and Transmigration Office dated January 9, 2018; and was socialized to employees on January 17, 2018.
4. Structure P2K3 PT SMA with Chair: Chok Yek Chuen, Secretary Farok Santoso. The new secretary attended the General AK3 training by PJK3 Gadjah Mada Yogyakarta on 12th - 24th of February 2018. But it has not been shown the Approval Letter from the relevant agencies.
Verify June 29, 2018
The Company shows some evidence of improvements as follows:
1. Acceptance list of Working Agreement of Unspecified Time (Staff) PT SMA dated December 28, 2017 to January 3, 2018.
2. PKWTT No. 25 / PK / KT / XII / 2017 dated December 20, 2017 between PT SMA with Aulia as maintenance worker.
3. PKWTT No. 34 / PK / KT / XII / 2017 dated December 20, 2017 between PT SMA with Hendy Hariantono as upkeep labor and LCT.
4. PKWTT No. 17 / PK / KT / XII / 2017 dated December 20, 2017 between PT SMA with Zalin as harvest labor.
5. PKWTT No. 07 / PK / KT / XII / 2017 dated December 20, 2017 between PT SMA with Keki Saputra as a maintenance workforce.
6. Decree of the Head of Manpower and Transmigration Office of Ketapang Regency No.120 on P2K3 PT SMA dated December 6, 2017.