Verification 27 April 2021
3.4.4. Noteworthy Positive Components
No Description
1 The company's commitment to implement the principles of sustainable palm oil management 2 Good cooperation from the Personnel in Charge during the audit
3 POM 7 has obtained Green PROPERDA from Kalimantan Timur Province for the period of 2020/2021.
4 Zero work accident award for 2020.
5 The company received a grant from &Green as an implementer of empowering social activities including environmental conservation.
6 Managing organic waste with composting method in Long Teman Estate.
7 Has implemented a social responsibility program to the communities and the benefits felt by the communities.
3.5 Summary of Arising Issues from Public and Auditor Verification Public Issues
(Institution/ NGO/Community) Auditor Verification
Manpower Agency of Kutai Timur District
• Mandatory reports related to employment have been submitted regularly in accordance with its period.
• The company has registered the Labor Union.
• No complaints regarding labor issues (child labor, worker discrimination, forced labor and so on).
• There were no information request or complaint from Manpower Agency of Kutai Timur District. Every communication with the company is carried out through mobile applications.
• There were no complaints related to salary shortages.
There was no negative issue that need further verification.
Environmental Agency of Kutai Timur District
• The company had reported the periodic reports of environmental related to environmental regulations.
• The company already has a permit of waste utilization permit (Land Application) and temporary storage of hazardous waste.
• There were no issues from the community and local NGOs related to environmental pollution or conflict.
• The environmental service had conducted annual monitoring routinely to ensure that environmental management has been carried out properly.
• There were an aspiration from the agency to the company for enclosing HCV/HCS reports.
• Environmental agency remind the UoC to integrate all the permit related to environmental aspect to environmental technical agreement.
There were no negative issues that need further clarification.
Several explanations have been described in the report.
Land Agency of Kutai Timur District
• The company already had location permit, plantation business permit (IUP), land title (HGU), and has routinely sent land use reports complied with applicable regulations related to land legality.
• There were no complaint from stakeholder related to land disputes.
There were no negative issue that need further verification. Based on document review and field observations, the certification unit has demonstrated legal compliance related land legality, and no indications of land disputes.
Plantation Agency of Kutai Timur District
• The company has reported its Progress Report of Plantation Business (Laporan Perkembangan Usaha Perkebunan/
LPUP) quarterly.
• Fire facilities are sufficient in accordance with the regulation.
• CSR activities have been conducted for the surrounding villages and had been reported to the agency.
• There were no fire incident occurred in the company's operational area both in Mill and Estates
There were no negative issue that need further verification. Based on document review and field observations, the company has demonstrated legal compliance regarding plantation legality, and no indications of land disputes or fire incident.
Public Issues
(Institution/ NGO/Community) Auditor Verification
• The company has responded to information requests quickly and transparently.
Gender Committee Interviewee:
• Gender Committee Head of DSN POM 7
• Gender Committee Head of PT. KPAS
• There were no complaints regarding issues related to sexual harassment and violence against women.
• All woman in pesticides applicator worker and others work which related to chemical material if reported pregnant, the worker would be transferred to non-agrochemical work (e.g.:
daycare officer).
• The gender committee had socialized some policies related to sexual harassment, and child protection.
• The company has had a policy to protect female workers from sexual harassment in the workplace as well as a grievance mechanism. The company also implemented some regulations related to reproductive rights such as menstruation leave and maternity paid leave.
There were no negative issues related to gender discrimination that need any further verification. The explanation regarding the interview output had been explained specifically in summary report.
Labor union
Interviewee: Labor union’s head of SPDSN POM 7 (DSN Workers Association)
• Bipartite meetings of labor union were held whenever it’s needed and if there were any cases or grievances.
• There were no contract / temporary workers in mill and estates of PT. KPAS, all workers were permanent.
• The wages applied by the company were in accordance with the applicable minimum wage.
• The company supports union activities by providing secretarial building.
• There were no labor-related issues happened in all units.
• There were no fatal working accidents in 2021-2022.
• The company had provided accessible restaurants in plantation area.
There were no negative issues related to worker union that need any further verification. The explanation regarding the interview output had been explained specifically in summary report.
Karya Sejahtera Cooperative
The cooperation that exists with the company is very good because until now the cooperative business field under the guidance of DSN Group is not only buying and selling FFB but has grown to include heavy equipment rental (TLB), transportation of FFB and JJK, to leasing operational vehicles.
The company also provides regular training to the management and admin of cooperatives, such as training on taxation and cooperative administration.
The management of the partnership plantation is carried out in a
In general there are no negative issues that require further verification. Explanation on FFB payments and Cooperation Agreements with plasma have been discussed on related indicators
Public Issues
(Institution/ NGO/Community) Auditor Verification
transparent manner. The cooperative is given access to view the monthly report on the management of the plantation, which contains the actual production costs and overall income so that the net income is known each month. Profit sharing is given equally to each member.
The FFB payment price follows the price set by the Plantation Service
The basis of the rights owned by the land owner is SHM. The management area of the plantation reaches ± 1,029 Ha with 1000 farmers
Village Head of Nehes Liah Bing
The positive impacts of the existence of the company include the realization of partnership plantation and employment as well as the implementation of social responsibility programs to the community.
So far, the company has always participated in the MUSRENBANGDES, one of which discussed synergizing the village development program with the company's community development program.
Social responsibility programs that have been running so far include:
• Guidance and support for the management of the tourist village and the Nehes Liah Bing Conservation Village
• Providing scholarships to the community to be able to study at the University
• Village infrastructure development
• Empowerment of farmer groups and livestock groups by bringing in extension workers and seed assistance
So far, there have been no issues regarding land disputes and land fires. There was once an issue regarding environmental pollution related to the management of factory effluent but for now there is none. From the CCTV results, it can be seen that there was a leak because the embankment was deliberately damaged by an irresponsible party
Overall there are no negative issues that require further verification.
The discussion on CSR is explained in more detail in the related indicators
Customary Head of Dayak Wehea
The company has a high concern for the village community, especially in terms of preserving customs and cultural arts. Always actively involved in activities and give maximum attention.
A clear example of the company concern is participating in maintaining and providing support for the Wehea customary protected forest as evidenced by logistical support and security teams for forest patrols. The protected forest has now been designated as part of the Nehes Liah Bing Tourism Village and Conservation Village by the Kutai Timur Regent since 2008.
Once provided assistance to the community in the form of calf and chick, but people are not used to it because the livestock that are usually kept are pigs, including for traditional events.
Overall there are no negative issues that require further verification.
Public Issues
(Institution/ NGO/Community) Auditor Verification
Village Head of Miau Baru
The existence of the company was felt very positively during the ± 6 months as village head, for example, such as absorbing labor and managing the village treasury plantation. The company is also active in the MUSRENBANGDES activity which was last held in March 2022. Among these activities include synergies in village development plans.
The form of the company's attention in developing the village community, for example, is evidenced by the support in the management of the Miau Baru Tourism Village. Which is managed by the village community and initially fostered by the company. In addition, the company also provides guidance to BUMDES, one of which is the procurement of 9 tons of rice for employees. It is hoped that these initial activities can run on a regular basis.
There was once an issue regarding environmental pollution, namely POM liquid waste that entered the river but there has been no evidence shown by the community and the village has never carried out field verification. In addition, there was once an issue of land disputes, but the dispute was between the community and the cooperative, not the company
Overall there are no negative issues that require further verification.
The discussion on CSR is explained in more detail in the related indicators