OER 23.39 KER 3.31
2. Implementation of certificate and trademark used by Client comply with size and type
3.5 Summary of Arising Issues from Public and Auditor Verification Public Issues
3.5 Summary of Arising Issues from Public and Auditor Verification
Public Issues
(Institution/ NGO/Community) Auditor Verification
One month payment system
There are no problems with payment PT Mustika Karya Buana
As a labor provider for planting oil palm trees and caring for seedlings
Workers' wages are paid according to the applicable district minimum wage
Workers have been given government insurance schemes (BPJS Manpower and BPJS Health)
Workers are given PPE in accordance with their work for free and replaced when it has expired and or is damaged
There is a letter of cooperation agreement for each worker
There are no negative issues that need further clarification
PT Gunung Kawi
As a CPO Transporter
There are requirements for cooperation in the form of receiving a minimum wage, implementing OHS and environmental policies,
There are no problems in the implementation and payment of the cooperation contract
There are no negative issues that need further clarification
National Land Agency of Batubara Regency.
The relationship between the agency and the company is quite good so far. Reports on Land Use Title (HGU) are always reported regularly every year. During the past year, there have never been any incidents/cases or issues related to land disputes/claims in the company's operational areas. Regarding the information on the granting of PT Socfin Indonesia's Land Use Title (HGU) area to the Batubara Regency Government as an office area, it is not clearly known by the agency. This is because all related matters are carried out by the Regional Office of the National Land Agency of Sumatra Utara Province.
The progress of the extension of the Land Use Title (HGU) is also carried out by the Regional Office, not the Regency, so the extent of the progress of the extension is not known by the Agency.
Based on the results of the document review, it is known that all arrangements for the extension of the Land Use Title (HGU) are carried out by the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency of the Republic of Indonesia and the Regional/Regency Office only as supporting parties in managing the extension.
PT Socfin Indonesia has submitted an application for an extension of the Land Use Title (HGU) to the Ministry of Agrarian Affairs and Spatial Planning / National Land Agency of the Republic of Indonesia since January 2021 in accordance with Letter No.
UM/X/Bi/236/21 dated January 19, 2021 for the Land Use Title (HGU) Area of 4,974.29 Ha in Batubara Regency whose HGU will expire on December 24 and 31, 2023. The progress of the extension until the audit activity takes place has reached the stage of re- measurement PT Socfin Indonesia land area of + 1,418.65 Ha in Batubara Regency in accordance with Letter No. 91/S-300.16.1-UK.01.03/II/2022 dated February 21, 2022, where the ministry assigned 2 field implementers to carry out these measurements. For the measurement of other permits (covering an area of
Public Issues
(Institution/ NGO/Community) Auditor Verification
3,373.11 Ha and 182.53 Ha) has not been carried out by the ministry. Currently, the processing of permit extensions is still ongoing at the ministry and these permits are still valid until December 31, 2023.
Tanah Itam Ulu Village
Over the past year, the relationship and communication between the village community and the company has been quite good. The impact caused by the company's operational activities (plantation and mill) is felt by the community positively, such as the existence of routine CSR assistance every year, the absence of fire incidents, no environmental pollution, communication responses related to requests/proposals for assistance are always responded well, and others. So far, the community and the village government have never had any grievance or complaints submitted to the company.
The company has routinely disseminated its policies, communication procedures to socialization of the PSR (Farmers Palm Oil Replanting) program to the community and farmer groups in the village. In addition, there have never been any incidents or issues related to existing land disputes/claims between the community and the company, the absence of child laborers employed in the company, nor any harassment or discrimination against workers or the community.
There’s no negative issues need to further verification.
Lima Puluh Kota Urban Village
Over the past year, the relationship and communication between the village community and the company has been quite good. The impact caused by the company's operational activities (plantation and mill) is felt by the community positively, such as the existence of routine CSR assistance every year, the absence of fire incidents, no environmental pollution, communication responses related to requests/proposals for assistance are always responded well, and others. So far, the community and the village government have never had any grievance or complaints submitted to the company. In addition, there have never been any incidents or issues related to existing land disputes/claims between the community and the company, the absence of child laborers employed in the company, nor any harassment or discrimination against workers or the community.
There’s no negative issues need to further verification.
Simpang Gambus Village
Over the past year, the relationship and communication between the village community and the company has been quite good. The impact caused by the company's operational activities (plantation and mill) is felt by the community not
Based on the results of the study of CSR realization documents for the period of 2021 and 2022, it is known that the company has provided assistance several times in the form of infrastructure improvements and
Public Issues
(Institution/ NGO/Community) Auditor Verification positively/negatively. In addition, there have never been any
incidents or issues related to existing land disputes/claims between the community and the company, the absence of child laborers employed in the company, nor any harassment or discrimination against workers or the community.
The village said that since 2020 until now (July 2022) the company no longer provides assistance to the community such as heavy equipment assistance, infrastructure repairs and other CSR. The village has never provided a letter of request for information or a request for assistance to the company since 2020 until now.
borrowing heavy equipment for the needs of the Simpang Gambus Village community. For example, namely:
Assistance for borrowing heavy equipment for leveling the ground and dismantling coconut stump at the mosque construction site in Simpang Gambus Village on December 17, 2021.
Assistance for normalization of drainage channels in Simpang Gambus Village on March 10, 2022.
Issue fron internet:
https://fokustime.com/2022/01/05/pt-socfin-indonesia- socfindo-tanah-gambus-cabut-gugatannya/?amp and
https://medanbisnisdaily.com/m/news/online/read/2022/01/05/
148656/polemik_lahan_kantor_bupati_batubara_akhirn ya_pt_socfindo_cabut_gugatan_di_pn_kisaran/
(https://www.tuntasonline.com/bonus-tahunan dikurangi- karyawan-pt-socfindo-unjuk-rasa)
Based on the results of interviews with the National Land Agency of Batubara Regency and the surrounding community, it is known that the area of PT Socfin Indonesia - Tanah Gambus which was previously requested by the Batubara Regency Government to be used as a 39.64 Ha government office area has been approved by the company.
Therefore, the previous lawsuit from the company has been officially withdrawn and is no longer suing the local government. This is in accordance with the results of interviews with company management who stated that they have agreed to give the land to the local government and the area will be removed from the management area at the time of processing the extension of the new land permit (HGU) which is currently in the process of being processed. Further explanation of the management process has been explained in the results of the interview with the National Land Agency of Batubara Regency above.
Regarding the demonstration incident, based on the explanation of the SPSI PUK Estate management, it was indeed initiated by the plantation workers union.
The union held a demonstration regarding the issue of reduced bonuses from previous years. Based on the explanation of the Department of Manpower Batubara Regency, related to bonuses, is the company's prerogative. From the results of the collective bargaining agreement review, it is also known that the bonus is based on a collective agreement between the Federation of Agricultural and Plantation Workers Unions of All Indonesia and the North Sumatran Plantation Company Cooperation Agency, not determined by PUK SP.PP-SPSI. Until the audit activity was carried out, currently all workers have returned to work.