Verification 20 October 2019
3.6 Summary of Arising Issues from Public and Auditor Response Public Issues
(Institution/ NGO/Community) Auditor Responses
Plantation Agency of Ketapang Regency
The company has submitted several mandatory reports such as the Plantation Business Development report which also includes CSR reports, and also land fire reports.
There are several land claims in the company, but the claims are made by the children or grandchild of which party who receiving compensation and cannot show the basis of the land claim. The company has been able to show its legality clearly.
Land acquisition / land compensation is completed by involving Muspika and Regency agencies.
PT SMA plans to add an area of 800 ha and will be adjusted to the previous HGU. However, the expansion of the area is still constrained by BPHK (Forest Area Consolidation Center).
The facilities and infrastructure of land fires owned by the company are quite good and adequate.
It has verified by auditor team and has been explained in criteria 2.2, 2.3 related to legality and land acquisition.
Manpower Agency of Ketapang Regency
The company has submitted routine reports such as the Mandatory Report on Manpower and P2K3 report.
Wages are applied according to the Ketapang Regency Minimum Wage.
There have never been fatal work accidents in the last 1 year.
Equipment related permits are issued by labor inspectors and periodic inspections have been carried out.
The company has a Labor Union and registration has been done.
There are no complaints or reports related to labor violations.
It has verified by auditor team and has been explained in indicator 2.1.1 and criteria 6.5, 6.6. Some labor implementations have become nonconformity in indicator 2.1.1.
Village Head, Customary Head and public figuure of Pangkalan Suka Village (stakeholder including previous land owner)
The company has provided CSR to the surrounding community such as ambulances, assistance in cultural and traditional activities, religious facilities, school bus assistance, village roads etc.
Village head Is one of the parties whose land has been compensated. Compensation is in accordance with the agreement and there is no coercion in the process of land acquisition / compensation.
There are no land conflicts or land disputes.
The company has provided information on conservation areas and protected flora and fauna.
There is no overlapping land with mining areas.
The Village Head is also a PT SISM land acquisition socialization team.
There are no environmental pollution or land fire issues.
It has verified by auditor team and has been explained in indicator criteria 2.2, 2.3, and 6.11.
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Public Issues
(Institution/ NGO/Community) Auditor Responses
Head of Hamlet and 2 villagers of Engkadin Hamlet of Sepakat Jaya Village (stakeholder including previous land owner)
The company has provided CSR assistance to the surrounding community such as heavy equipment, houses of worship, fire facilities, etc.
Land claim ever occurred, but it was settled by agreement.
The land claim was carried out unilaterally by the community and indeed it could not be clearly demonstrated by that party.
Claims are made by the children or grandchild of which party who receiving compensation.
There are no environmental pollution or land fire issues.
land acquisition was carried out without coercion and in accordance with the agreement. The entire area of HGU which include in Engkadin Hamlet has been compensated by the company
The company has provided information on concervation areas and protected animals.
It has verified by auditor team and has been explained in indicator criteria 2.2, 2.3 and 6.11.
PT SISM and PT SMA's Workers Union
The prevailing wages in the company are in accordance with the Ketapang Regency Minimum Wage. Wages in 2019 have risen on January 2019.
The company has registered employees in the BPJS (Social Insurance)
There are no serious or fatal work accidents in last 1 year.
The company has provided PPE and work tools.
Routine health checks are carried out every year.
There are a number of complaints from workers regarding the provision of clean water.
It has verified by auditor team and has been explained in indicator 2.1.1 and criteria 4.7, 6.5, 6.3, 6.6. Some labor implementations have become nonconformity in indicator 2.1.1.
Gender Committee
There is no issue related to sexual harassment, reproductive rights, and discrimination.
Routine activities posyandu and recitation.
Women worker give menstruation leave by recommendation paramedic for maximum 2 days. Women workers also has rights of maternity leave for 45 day before and 45 days after.
There is no negative issue related to women workers.
It has verified by auditor team and has been explained in indicator criteria 6.9 and become nonconformities in indicator 6.9.1 and 6.9.2
Contractor
The contractor has a copy of the agreement with the company
Payments to contractor accordance with the agreement.
Contractor workers have been provided with PPE and already have BPJS
The company has provided socialization regarding the code of ethics and human rights.
Based on document verification, show that the rights and obligation of each party has been set in the contract.
Harapan Jaya Cooperative & Trimulya Lestari Cooperative.
Cooperative management is carried out with full management by the company.
Employees who work in a cooperative area are company workers.
It has verified by auditor team and has been explained in indicator criteria 6.10 dan indivator 6.11.2.
RSPO – 4006a/1.0/26072018 Page 123 Prepared by Mutuagung Lestari for Mulia Oil Mill – PT SEPANJANG INTISURYA MULIA subsidiary of Genting Plantations
Public Issues
(Institution/ NGO/Community) Auditor Responses
The company has provided training to farmers, cooperative members and field employees.
Provision of PPE is carried out by the company, including employee wages.
The company has provided / presented data transparently to cooperatives
Head of Hamlet, Religious Figure and Community Figure in Bayangan Hamlet of Mensubang Village (stakeholder including previous land owner)
Some positive impacts felt by the community with the presence of the company such as the help of the community's economy, improvement of infrastructure, the formation of cooperatives.
The land compensation process is carried out first with socialization, without coercion and with the involvement of all parties.
The majority of workers who work in companies come from Bayangan Hamlet (Mensubang Village)
The company has provided CSR assistance such as repairing houses of worship, assistance with educational facilities, teacher salary assistance, etc
There is an area that has not been compensated for an area of 317 ha that is entered into PT SMA's HGU. The process of land acquisition was carried out 2 years ago. Because it has not yet been compensated, the land is still being cultivated by the community.
It has verified by auditor team and has been explained in indicator criteria 2.2, 2.3 and 6.11.
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