SURVEILLANCE REPORT Roundtable on Sustainable Palm Oil ...

PT. MUTUAGUNG 

LESTARI 

<strong>SURVEILLANCE</strong> <strong>REPORT</strong> 

<strong>Roundtable</strong> on Sustainable Palm Oil Certification 

[]S-1 [ ] S-2 [ ] S-3 [ ] S-4 [ ] Re-Assessment 

Plantation Management/Owner 

Plantation Name 

Location 

: MINAMAS Plantation - Sime Darby Group 

: PT. Laguna Mandiri – Rantau POM 

: Pamukan Subdistrict, Kotabaru District, 

South Kalimantan Province, Indonesia 

Certificate Code : MUTU-RSPO/009 

Date of certificate issue : 30 December 2011 

Date of expiry of certificate : 30 December 2016 

Assessment 

ST2 

S1 

Assessment 

Date 

30 May 2011 – 

04 June 2011 

20 – 24 

October 2012 

Report 

Finalization 

Date 

18 July 2011 

30 January 2013 

PT. Mutuagung Lestari 

Auditor 

Nanang Mualib (Lead Auditor), 

Muardi Marwas (Auditor), 

I Wayan Sudi Antara (Auditor) 

Taufik Margani (Lead Auditor) 

Nanang Mualib (Auditor), 

Muardi Marwas (Auditor), 

Yudwi Wisnu Rahmanto (Auditor) 

Checked 

by 

Taufik 

Margani 

Octo HPN 

Nainggolan 

Approved by 

Tony 

Arifiarachman 

Tony 

Arifiarachman 

Submitted 

to RSPO on: 

Approved 

by RSPO on: 

Approved 

by Certification Body on: 

15 February 2013 - 26 December 2012 

Mutuagung Lestari • Raya Bogor Km 33,5 Number 19 • Cimanggis • Depok 16953• Indonesia 

Telephone (+62) (21) 8740202 • Fax (+62) (21) 87740745/6 

Email : agri@mutucertification.com ● www.mutucertification.com 

MUTU Certification • Approved by RSPO Secretariat on June 2008

PT. MUTUAGUNG 

LESTARI 

<strong>SURVEILLANCE</strong> <strong>REPORT</strong> 

TABLE OF CONTENT 

FIGURE 

Figure 1. Location Map 

Figure 2. Operational Map 

1 

2 

1.0 SCOPE of the <strong>SURVEILLANCE</strong> ASSESSMENT 

1.1 National Interpretation Used 3 

1.2 Organization Information 3 

1.3 Type of Assessment 3 

1.4 Location of Plantations, Mill and Area Statement 3 

1.5 Description of Supply Base 4 

1.6 Dates of Plantings and Cycles 5 

1.7 Tonnage Certified 5 

1.8 Other Certifications 6 

1.9 Time-Bound Plan for Other Management Units 6 

2.0 ASSESSMENT PROCESS 

2.1 Certification Body 8 

2.2 Assessment Team 8 

2.3 Assessment Methodology, Assessment Process and Locations of Assessment 8 

2.4 Stakeholder Consultation and List of Stakeholders Contacted 9 

2.5 Date of Next Surveillance Visit 10 

3.0 ASSESSMENT FINDINGS 

3.1 

3.2 

Summary of Assessment Report of the RSPO Certification 

Summary of Assessment Report of Supply Chain Requirement 

11 

25 

3.3 Conformity Checklist of Certificate and Logo Use 29 

3.4 Summary of Time Bound Plan Verification of the RSPO Certification 30 

3.5 Identification of Findings, Corrective Actions, Observations, Opportunity for Improvement and 31 

Noteworthy Positive Components 

3.6 Summary of Arising Issues from Public, Management and Auditor Responses 43 

4.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY 

4.1 Formal Signing of Assessment Findings 44 

APPENDICES 

1. List of Stakeholders Contacted in the RSPO Certification Process 45 

2. Assessment Plan 46 

3. Glossary 47 

SPO – 4006a.4 

Prepared by Mutuagung Lestari for Rantau POM (PT Laguna Mandiri) – Sime Darby 

i

PT MUTUAGUNG LESTARI 

ASSESSMENT <strong>REPORT</strong> 

Figure 1. Location Map of PT Laguna Mandiri 

SPO – 4006a.4 Page 1 

Prepared by Mutuagung Lestari for Rantau POM (PT Laguna Mandiri) - Sime Darby

PT MUTUAGUNG LESTARI 


Figure 2. Operational Map of PT Laguna Mandiri 

SPO – 4006a.4 Page 2 

Prepared by Mutuagung Lestari for Rantau POM (PT Laguna Mandiri) - Sime Darby

PT. MUTUAGUNG LESTARI 


1.0 SCOPE OF THE CERTIFICATION ASSESSMENT 

1.1 National Interpretation Used National Interpretation, RSPO Principles and Criteria 

(P&C) for Sustainable Palm Oil Production, Republic 

of Indonesia - RSPO INA-NIWG, May 2008 and RSPO 

Supply Chain Certification Standard November 2011. 

1.2 Organization Information 

1.2.1 Company name PT. Laguna Mandiri 

1.2.2 Contact person Mohamad Pirabaharan 

1.2.3 Company address The Plaza Office Tower, 36th Floor, 

Jl. M. H. Thamrin Kav. 28-30, Jakarta 10350 

1.2.4 Telephone +62-21-29926000 

1.2.5 Fax +62-21-29922686 

1.2.6 E-mail mohamad.pirabaharan@simedarby.com 

1.2.7 Web page address www.simedarby.com 

1.2.8 Company status Private 

1.2.9 Management Representative who completed the application for 

certification 

Mohamad Pirabaharan (Head of PSQM) 

1.2.10 Registered as RSPO member 08 September 2004 

1.3 Type of Assessment 

1.3.1 Scope of Assessment Palm oil Mill and Estate 

1.3.2 Type of certificate Single 

1.3.3 Company names listed in the certificate PT.Laguna Mandiri – Rantau POM 

1.3.4 

Number of management unit 

1 (one) mill (Rantau POM) which received FFB supply 

from 4 (four) estates: Rantau Estate, Sekayu Estate, 

Betung Estate and Matalok Estate. 

1.4 Locations of Mill, Plantations and Area Statement 

1.4.1 Location of Mill 

Name of Mill 

Rantau Factory 

1.4.2 Location of Estate(s) 

Name of Estate(s) 


Village of Rantau Buda, Subdisrict of 

Pamukan utara, District of Kotabaru 


Sekayu Estate Village of Sekayu, Subdistrict of 

Pamukan utara, District of Kotabaru 

Betung Estate Village of Betung, Subdistrict of 

Pamukan utara, District of Kotabaru. 

Rantau Estate 

Village of Rantau Buda, Subdistrict of 

Pamukan utara, District of Kotabaru. 

GPS 

Latitude 

Longitude 

2° 26' 21" LS 116°6' 51" BT 

GPS 

Latitude 

Longitude 

2°23’19” -2°18’23” 116°06’31” - 116°11’55” 

2°24’16” -2°18’25” 116°10’51” - 116°14’10” 

2°28’49” - 2°23’51” 116°03’26” -116°07’43” 

SPO – 4006a.4 Page 3 

Prepared by Mutuagung Lestari for Rantau POM (PT Laguna Mandiri) – Sime Darby



Matalok Estate Village of Bepara, Subdistrict of 

Pamukan Utara, District of Kotabaru. 

2°28’26” - 2°24’33” 116°06’03” - 116°10’25” 

1.4.3 Country/Region Indonesia, South East Asia 

1.4.4 Tenure 

Private 

State 15,300 Ha* 

Community 

1.4.7 Area Statement 

Total area 15.300 Ha 

Mature area 12.827 Ha 

Immature area - Ha 

Mill 52 Ha 

Infrastructure 861 Ha 

- Land Clearing - Ha 

- Occupation 1.366 Ha 

- HCV 194 Ha 

- Other area - Ha 

1.5 Description of Supply Base 

1.5.1 Description of Mill 

Name of Mill 

Capacity 

(tonnes/ hour) 

FFB 

Processed 

(tonnes/ 

year) 

Out put 

(tonnes) 

CPO Palm Kernel PKO 

Extraction 

(%) 

Out put 



(%) 

Out put 


Rantau Factory 60 258,815.52 59,368.15 22.94 12,499.05 4.83 - - 

*Production data from October 2011 to September 2012 

1.5.2 Description of Estate(s) 


(%) 


Total Area 

(Ha) 

Planted 

Area 

(Ha) 

FFB 

(tonnes/year) 

Yield 

(tonnes/ha/year) 

Supplied to Mill 

FFB 


Sekayu Estate 4,266 3,243 61,920.61 19.09 44,323.269 72 

Betung Estate 3,314 2,706 42,405.77 15.67 34,599.816 82 

Rantau Estate 4,638 4,232 104,604.41 24.72 66,953416 64 

Matalok Estate 3,082 2,636 61,874.31 23.47 39,878.623 65 

TOTAL 15,300 12,817 270,805.10 21.13 151,155.308 56 


1.5.3 Smallholder(s) and others 

% 

SPO – 4006a.4 Page 4 




Smallholder(s) 

Scheme 

Selabak Estate 

Randi Estate 

Sangkoh Estate 

Lanting Estate 

KKPA Sungai 

Cengal 

AKM Riwang 

Pucuk Jaya 

PT. Alam Raya 

Kencana 

Member(s) 

PT.Swadaya Andika- 

Minamas, Sime 

Darby 


Minamas, Sime 

Darby 


Minamas, Sime 

Darby 

PT.Laguna Mandiri- 

Minamas, Sime 

Darby 

(Individual) 

(Individual) 


Subdistrict of Pamukan 

utara, District of 

Kotabaru 



Kotabaru 



Kotabaru 



Kotabaru 



Kotabaru 



Kotabaru 



Kotabaru 



Kotabaru 

Total 

Area 

(Ha) 

FFB 



1.5.4 Product categories FFB/CPO/PK/PKO 

Supplied to Mill 

FFB 

% 


33,042.680 

24,851.38 

2,780.76 

3,173.06 

1,471.24 

304 

838 

3,415.529 

1.6 Dates of Plantings and Cycles 

1.6.1 Age profile of planted palms* 

Planting Year 

Estate xxx 

Estate xxx 

1992 78.94 21 

1993 1,110.38 20 

1994 961.89 19 

1995 1,200.49 18 

1996 3,471.24 17 

1997 2,512.25 16 

1998 3,007.75 15 

1999 237.00 14 

2007 133.20 6 

2008 108.00 5 

SPO – 4006a.4 Page 5 


Age



2009 54.20 4 

TOTAL 12,875.34 14 

1.6.2 New Planting area after November 2005 Ha 

1.6.3 Planting Cycle 1 st Cycle 25 Years 

1.7 Approximate Tonnage Certified 

1.7.1 Past Annual Claim Certified Product 

- FFB Production 189,566.56 Tonnes/year 

- CPO Production 42,171.76 Tonnes/year 

- Palm Kernel (PK) Production 8,330.44 Tonnes/year 

- Palm Kernel Oil (PKO) Production - Tonnes/year 

1.7.2 Claim Certified Tonage of FFB 


Total Area 

(Ha) 

Planted Area 

(Ha) 

FFB 


Yield 

(tonnes/ha/year) 

Sekayu Estate 4,266 3,238 64,876 20 

Betung Estate 3,314 2,706 43,288 16 

Rantau Estate 4,638 4,232 105,799 25 

Matalok Estate 3,082 2,651 63,261 24 

TOTAL 15,300 12,827 277,224 21.63 

1.7.3 Claim Certified Tonage of Palm Product 

Name of Mill 

Capacity 

(tonnes/ hour) 

FFB 

Processed 

(tonnes/ 

year) 

Out put 


CPO Palm Kernel PKO 


(%) 

Out put 



(%) 

Out put 


Rantau Factory 60 277,224 63,761 23 13,861 5 - - 


(%) 

1.8 Other Certifications 

1.8.1 ISO 9001:2008/ISO 14001: 2004 

1.8.2 OHSAS 18001:2007 

1.8.3 HACCP 

1.8.4 Others 

1.9 Time Bound Plan for Other Management Units 

Management 

Hectarage Time Bound Complete 

Address 

Unit 

(Ha) *) 

Plan Audit 

PT. Indotruba Tengah Seruyan and Kotawaringin Barat District 7,734.60 2009 Certified 

SPO – 4006a.4 Page 6 




– Central Kalimantan Province 

PT. Tunggal Mitra Plantations Rokan Hilir District – Riau 13,836 2009 Certified 

PT. Aneka Inti Persada Pekanbaru and Siak District– Riau 11,134 2010 Certified 

PT. Bahari Gembira Ria Muaro Jambi District – Jambi 1,202.04 2010 Certified 

PT. Bina Sains Cemerlang Musi Rawas District- South Sumatera 6,513 2010 Certified 

PT. Bhumireksa Nusa Sejati Indra Giri Hilir District– Riau 25,662 2010 Certified 

PT. Kridatama Lancar 

Seruyan and Kotawaringin Timur District 14,779.92 2010 Certified 

– Central Kalimantan Province 

PT. Lahan Tani Sakti Rokan Hilir District– Riau 3,759.02 2010 Certified 

PT. Ladangrumpun 

Tanah Bumbu District – South 

Suburabadi 

Kalimantan Province 

PT. Sajang Heulang Tanah Bumbu District – South 

Kalimantan Province 

PT. Bersama Sejahtera Sakti Kotabaru District – South Kalimantan 

Province 

PT. Teguh Sempurna Seruyan and Kotawaringin Timur – 

Central Kalimantan Province 

PT. Budidaya AgroLestari Ketapang District – West Kalimantan 

Province 

PT. Guthrie Pecconina Musi Banyuasin District – South 

Indonesia 

Sumatera Province 

PT. Langgeng Muaramakmur Kotabaru District – South Kalimantan 

Province 

PT. Mitra Austral Sejahtera Sanggau District – West Kalimantan 

Province 

PT. Padang Palma Permai Aceh Tamiang and Aceh Timur - 

Nangroe Aceh Darussalam 

PT. Paripurna Swakarsa Kotabaru District – South Kalimantan 

Province 

PT. Perusahaan Sri Kuala Aceh Tamiang District - Nangroe Aceh 

Darussalam 

PT. Sandika Natapalma Ketapang District – West Kalimantan 

Province 

PT. Swadaya Andika 

Kotabaru District – South Kalimantan 

Province 

PT. Tamaco Graha krida Morowali District – Central Sulawesi 

Province 

6,077 2010 Certified 



16,601.66 2010 Certified 

1,002 2011 Audited 

10,139.91 2011 Certified 

16,361.77 2011 Certified 

8,741.29 2011 Audited 

6,451.99 2011 Audited 


1,128.90 2011 Certified 

8,406.21 2011 Audited 

10,361.18 2011 Certified 

4,145.00 2011 Certified 

SPO – 4006a.4 Page 7 




2.0 ASSESSMENT PROCESS 

2.1 Certification Body 

PT Mutuagung Lestari 

Jl. Raya Bogor Km 33,5 No. 19, Cimanggis - Depok 16953 

Telp. +62-21-8740202; Fax +62-21-87740745/46 

Website: www.mutucertification.com Email : agri@mutucertification.com 

2.2 Lead Assessor and Assessment Team 

2.2.1 Assessment Team 

ST2 1. Nanang Mualib (Lead Auditor) 

2. Muardi Marwas (Auditor) 

3. I Wayan Sudi Antara (Auditor) 

S1 1. Taufik Margani (Lead auditor). Bachelor of Forestry majoring in Forest Management. Specialists in 

Environmental sector. He has led several audits for Sustainable Forest Management in Indonesia (under the 

scheme of LEI-Lembaga Ekolabel Indonesia and FSC-Forest Stewardship Council) and Lead Auditor for FSC 

Track of Custody. Other experiences: He is a registered IRCA Lead auditor for Environmental Management 

System and Quality Management System. Since 1999, he has worked for an independent certification agency 

and has conducted a number of Audits of Environmental Management System, Quality Management System, 

and RSPO in Malaysia and Indonesia. Currently he works General Manager of Management System 

Certification. In Stage-1 activity, he conducted the assessment on legal and environmental aspects. 

2. Yudwi Wisnu Rahmanto (Auditor). Bachelor of Forestry with Silviculture background. He has attended in 

selected training, such as Auditor/Lead Auditor Course Quality Management System (QMS) ISO 9001:2008, 

Timber Legality Assurance System (SVLK), Verification Organization Training C.A.F.E Practices (Starbucks), 

Organic Standard (EU, NOP, JAS), Forest Stewardship Council (FSC), Program Endorsement of Forest 

Certification (PEFC) and Organic Exchange for Textile. He also has experience as an auditor and involved in 

certification program auditing, such as Sustainable Forest Management by FSC FM/COC Scheme, Coffee And 

Farmer Equity (C.A.F.E Practices) Starbucks, Sustainable Palm Oil by RSPO Scheme, Organic Standard (EU, 

NOP, JAS) for Coffee Farmer and Organic Exchange for Textile. Currently, he worked at Professional 

Certification Body and assigned to verify in Social aspect, conservation and environment aspect during this 

Surveillance assessment (S1). 

3. Nanang Mualib (Auditor) 

4. Muardi Marwas (Auditor) 

2.3 Assessment Methodology, Assessment Process and Locations of Assessment 

2.3.1 Assessment Dates 

S1 20-23 October 2012 

2.3.2 Estimate of person days to implement assessment 

S1 Number of auditors : 4 persons 

Number of days for assessment at site : 4 days 

Number of working person-days for assessment at site : 16 person days 

2.3.3 Detail process of assessment 

S1 The assessment was conducted by measuring the sufficiency of implementation with the consistency done by the 

Laguna Mandiri (LMI) to the requirements of National Interpretation of the Republic of Indonesia from RSPO 

Principles and Criteria for Sustainable Palm Oil Production (RSPO INA-NIWG, May 2008) and Supply Chain 

SPO – 4006a.4 Page 8 




Requirement for CPO Mill. 

The assessment was conducted in three methods: (1) document review, aiming to observe the sufficiency of types or 

substances from required documents; (2) interview, aiming to obtain more detailed information and cross check the 

information; and (3) field check, aiming to observe directly the sufficiency of implementation on site. 

The detailed assessment process pleased see Appendix 2 

Improvement of findings from Stage-2 findings were observes by auditors at this surveillance-1 assessment. 

All information obtained was recorded in Check List of PT Mutuagung Lestari (MUTU) and part of Surveillance report. 

2.3.4 Locations of Assessment 

S1 Location is determined based on study document and the issues from stage 2 with aim to verify field implementation. 

Auditor visited estate and Palm Oil Mill PT LMI. Location visited during the surveillance are: 

Location 1. Visited Terombong Sari Village to see the realization of CSR, socialization communication procedures, 

and checks the boundry. 

Location 2.Visited Rantau Jaya Village to see the realization of CSR, socialization communication procedures, and 

checks the boundry. 

Location 3. Blok D 16 and B 10 Rantau Estate (RTE). HCV management, Sign Board maintenance and tree planting. 

Location 4. Blok D 16 Matalok Estate (MLE). Management of HCV 5 such as making boundry at water source and 

tree planting (Mahoni). 

Location 5. Blok J 26 Betung Estate (BTE). Management of HCV 1.3 and HCV 2.3 such as secondary forest, Pinang 

river buffer zone. 

Location 6. Employee housing Division I Matalok Estate (MLE). Observation the facilities and infrastructure at 

Employee housing and facilities. 

Location 7. Rantau Palm Oil Mill. Observation mill operational start from weight bridge, grading FFB at loading ramp, 

and processing mechanism. 

Location 8. Rantau Palm Oil Mill. Observation health and safety management system at processing station such as: 

Sterilizer, Thresher, Digester, Nut Cracker, Engine Room, Boiler. 

Location 9. Hazardous waste storage at Rantau POM. Observation hazardous waste handling, Verification waste 

balance, observation oil trap presence, etc. 

Location 10. Wastewater Treatment Plant (IPAL). Monitoring the pond condition at Wastewater Management 

Installation and make sure no leaks in the pipeline for land application. 

Location 11. Warehouse B3 waste at Matalok Estate dan Rantau Estate. Field visit to know the number of ex 

pesticide packaging and the other hazardous waste. 

Location 12. Office and heavy vehicle workshop at Rantau Estate. Field visit related to healthy and safety compliance 

equipment such as: Fire extinguisher, First aid Kit, PPE. 

Location 13. Blok A24 & A25 Matalok Estate. Field visit to land application. 

Location 14. Blok C 35 Matalok Estate dan Blok B 11 Rantau Estate. Observations the water source not polluted by 

chemical spraying. 

Location 15. Harvesting Blok at Matalok Estate dan Rantau Estate. Observations and interviews with workers related 

with the use of PPE, harvesting techniques, understanding of procedures and workers welfare. 

2.4 

Stakeholder Consultation and List of Stakeholders Contacted 

2.4.1 Summary of stakeholder consultation process 

Consultation of stakeholders for LMI was done in interviewing with internal stakeholders and local stakeholders 

conducted by visits to Terombong Sari village, Rantau Jaya village interviews with local peoples. Numbers of input 

SPO – 4006a.4 Page 9 




from stakeholders were clarified by LMI. Generally villagers have good opinion to company especially for community 

social responsibility program and communication. 

2.4.2 List of stakeholder contacted 

Please find appendix 3 

2.5 Determining Next Visiting 

The next visit (Surveillance 2) will be determined one year (October 2013) after surveillance-1. 

SPO – 4006a.4 Page 10 




3.0. ASSESSMENT RESULT 

3.1. Summary of Assessment Report of the RSPO Certification 

MUTUAGUNG LESTARI has conducted a Surveillance-1 assessment of PT Laguna Mandiri – Rantau POM Operation 

consisting of 1 (one) mill and 4 (four) oil palm estates. MUTUAGUNG LESTARI found that PT Laguna Mandiri – Rantau 

POM comply with the requirements of RSPO Principles & Criteria and National Interpretation, RSPO Principles and Criteria 

(P&C) for Sustainable Palm Oil Production, Republic of Indonesia - RSPO INA-NIWG, May 2008. Therefore MUTUAGUNG 

LESTARI recommends a certificate of compliance is maintained. 

Ref Std. 

VERIFICATION RESULT of MUTU-Certification 

PRINCIPLE #1 COMMITMENT TO TRANSPARENCY 

1.1 

Plantation and Palm Oil Factory have to give adequate information for stakeholders in appropriate language and forms, 

to ensure the effective participation of stakeholders in decision-making. 

LMI has a procedure Request for Information. Recorded evidence and feedback on requests for information from stakeholders is 

stored in the book Records of Communication with Stakeholders. For example: there are requests for information from the 

National Statistic Biro, Kotabaru District (No: 05330.005, dated January 5, 2012) on captive power data and has been respond on 

19 June 2012 by filled the checklist form. 

LMI also has an SOP Control Records SOP Number 051/LMI-PC/2010, related to the determination of documents retention time 

of records based on their interests. 

Full compliance 

1.2 

Management documents are publicly available, except where this is prevented by commercial confidentiality or where 

disclosure of information would result in negative environmental or social outcomes. 

LMI showed the types of documents can be accessed by the public, including: 

a. Legal documents. Land Use Right (HGU), Plantation Business Permit (SIUP/IUP), Licensing, Building permit. 

b. Environment documents. HCVA, waste and applications, EIA, RKL / RPL, Land application permit. 

c. Social documents. Social Impact Assessment, Community development program 

d. Safety and health documents. 

e. Others documents. Tax document, Employee Data, FFB Data Production, Crude Palm Oil-Palm Oil Kernel Production Data, 

specifications of Factory machines, Vehicle Specifications, Guidelines for Sustainable Plantation Management. 


PRINCIPLE #2 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS 

2.1 

There is compliance with all applicable local, national and ratified international laws and regulations. 

LMI has demonstrated an effort to make adjustments to changes of rules for example Minimum wage of workers, each year has 

made changes accordance to South Kalimantan Governor Regulation. 

LMI has a mechanism to evaluate the regulations and legislations presented in the form of a matrix 'Evaluation of Regulatory 

Compliance', contains information on legal requirements to be fulfilled, the article must be fulfilled, an indicator of compliance, 

compliance status, and details that show material compliance. 

Documented system by LMI which provides information and legal requirement that must be fulfilled by companies contained in 

SPO – 4006a.4 Page 11 




SOP guidelines for Sustainable Plantation Management Number724/TQEM-SPMS/09 in Chapter 1.2 explained compliance with 

the Act and Regulation and Legal Requirements, also has legal opinion procedure number 322/LGL-OPN/07 dated 24 Mei 2007 

which describes the identification mechanism of compliance in related regulations. Minor non conformance CAR.2011.06 is 

closed. 


2.2 

The right to use the land can be demonstrated, and is not legitimately contested by local communities with 

demonstrable rights 

Acquisition of legal rights on land management by the company as evidenced by HGU Certificate: 

1. Land Use Right (HGU) Certificate Number 13 year 1997 dated 22 November 1997 based on The Minister of Agrarian Letter/ 

Head of BPN Number 138/HGU/1997 dated 31 October 1997 with an area of 149,500,000 m2, which is valid until 22 

November 2032. 

2. Land Use Right (HGU) certificate Number 46 year 2004 with 59,10 ha which is valid until 20 April 2039. 

3. Land Use Right (HGU) certificate Number 47 year 2004 dated 2 April 2004 with 115.40 ha area which is valid until 20 April 

2039. 

4. Land Use Right (HGU) certificate Number 48 year 2004 dated 2 April 2004 with 21.50 ha area, which is valid until 20 April 

2039. 

5. Land Use Right (HGU) certificate Number 49 year 2004 dated 2 April 2004 with 4 ha area which is valid until 20 April 2039. 

6. Land Use Right (HGU) certificate Number 50 year 2004 dated 2 April 2004 with12.26 ha area which is valid until 20 April 

2039. 


2039. 


2039. 


2039. 


2039. 

LMI has shown a document the boundary in every estate, in the form of maps and photographs of the pole installation. Based on 

field visits boundary poles can be found easily and clearly demarcated. Non conformance CAR.2011.29 is closed 

Resolution process document is available such as; Land Compensation Record Document (Occupied Land Phase IV Acquisition 

Report which includes on licensing in the PT Laguna Mandiri’s Oil Palm Plantation) with 34 ha of area in Mangka Village, 

Pamukan Utara sub district, Kotabaru district year 1998 equipped with PT Laguna Mandiri Compensation Consultation Meeting 

with tenant acknowledged by Mangka Chief of Village and Pamukan Utara Chief of sub district, Right Discharge on Land, 

Statement Letter and Compensatory payment Deliverance Verification (receipt) . 

Conflict resolution SOP is available Number 059/LMI-PK/10 dated 16 December 2010 where compensation is based on land 

inventory, implemented throughout consultation with involved parties (claimant, Muspika, Village Officials PSD and Estate). The 

measurement is conducted by research and resulting compensatory payment nominal agreement as well as Payment Plan. 


SPO – 4006a.4 Page 12 




2.3 

Use of the land for oil palm does not diminish the legal rights, or customary rights, of other users, without their free, 

prior and informed consent. 

Negotiation process record between rights and traditional rights owner with the company equipped with the map of claimed area 

such as; Land Compensation Record (Occupied Land Phase IV Acquisition Record which includes in licensing at PT Laguna 

Mandiri Oil Palm Plantation Area) with 34 ha of area in Mangka Village, Pamukan Utara sub district, Kotabaru district year 1998 

equipped with PT Laguna Mandiri’s Compensation Consultation Meeting Result with tenant acknowledged by Chief of Mangka 

village and Head of Pamukan Utara sub district, Rights Discharge on Land, Statement letter and compensatory payment 

verification (receipt). 

Evidence of land conflict resolution was available at the location and can be identified on a company's work map. Visits to the 

area of Block E-21 to E-26 and D-21 to D-24 at Rantau Estate, the area declared by the company as community occupations 

areas coverage 120 Ha, until now there was no conflict between company and occupants. LMI has made good relationship with 

the occupants for example provide clean water when the dry season. Delineation of the area which is a corporate initiative to 

remove the area from corporate management. area has been mapped to the company`s Working Map Area, as the occupational 

area. 

Resolution evidences available at LMI in the form of a receipt of compensation payment, land Release Letter, not dispute 

statement letter, and photos of compensation submission. 


PRINCIPLE #3 Commitment to long-term economic and financial viability 

3.1 

There is an implemented management plan that aims to achieve long term economic and financial viability. 

LMI has a document the company's work plan for the short term the Year 2012-2013 Work Plan and contained in the 2012-2016 

Budget allocation for the Rantau Estate, Sekayu Estate, Betung Estate, Matalok Estate and Rantau Mill the distribution of the 

work plan include: 

a. Forecast production of 2012-2016, the production yield (ton / ha), administration cost, labor cost, mature upkeep, manuring, 

harvesting and collection, transport, etc.. 

b. Forecast mill intake (FFB), palm oil extraction, kernel extraction, processing cost, admin cost, training cost, cost 

Environment, Health cost, transport cost, etc.. 

c. Corporate environmental management plan has allocated for water supply activities of employee, the cost of OHS, RSPO, 

HCV, EIA, etc. 

d. Social activity the company has plans to allocate religious holidays, the wages of teaching staff, the cost for CSR programs 

and social contribution to society, etc. 

Based on 2012 – 2013 budget presentation and projection document, there is no replanting activity. Replanting plan at LMI area 

in 2017/2018 period at Rantau estate with 255 ha of area. 


PRINCIPLE #4 Use of appropriate best practices by growers and millers 

4.1 

Operating procedures are appropriately documented and consistently implemented and monitored. 

SPO – 4006a.4 Page 13 




LMI, Minamas Plantation has SOP related to estate management from land clearing to harvest contained in AGRONOMY 

REFERENCE MANUAL SOP (AGRICULTURAL REFERENCE MANUAL) Number Policy: 110/EST-ARM/08, dated 22 December 

2008: planting materials, nursery techniques, replanting, land preparation, planting density, maturity age, field upkeep, 

manuring, canopy management, management of coastal water in the soil/plant oil palm on peat, ablation , ripeness standard, 

harvesting interval, tracebility, plant protection. AIP also has the procedure contained in the Mechanical Palm Oil Plant Manual 

SOP from receipt of FFB, processing until the CPO and PKO dispatch to the operations of Palm Oil Mill. 

There are monitoring of operational activities undertaken by LMI such as Plantation Adviser activities and Mill Adviser set up for 

2 (two) times a year and the activities of Internal Audit 2 (two) times a year. 

LMI periodically informed of all operations in both the estate and mill in each month and results of operations are set forth in this 

Estate Unit Report document made by the Estate Manager and Monthly Report made by Mill Manager. 

Rantau Mill Monthly report describes the monitoring results of operational activities of each month as of receipt of FFB, 

production data (CPO production and extraction, Kernel production and extraction), quality and loss of production, production 

costs, the number employees and housing, inventory (stock item), the expense recapitulation. 

Estate reports describes the area statement, organizational structure, employee data, housing and buildings, rainfall data, FFB 

production, treatment plants, fertilizer, new crops (replanting), breeding, improvement of road , stock of goods and operating 

expenses recapitulation. 


4.2 

Practices maintain soil fertility at, or where possible improve soil fertility to, a level that ensures optimal and sustained 

yield. 

LMI has conducted soil analysis in form of semi detailed soil analysis report on 8-15 October 2012 and leaf sampling analysis 

was conducted every year by Minamas Research Center Department, the test result are used for fertilization recommendation in 

year 2013 to maintain and improve soil fertility. Minor non conformance CAR.2011.26 is closed. 

The activity to maintain and improve land fertility was conducted by LMI through organic application (empty fruit bunch 

application and land application) and nonorganic fertilization. Based on research centre department recommendation program 

the fertilization was complete applied by company during one year period (july 2011 to june 2012). 


4.3 

Practices minimize and control erosion and degradation of soils. 

There was no marginal soil class identified in LMI, based on semi detail soil survey; however LMI has implemented the 

management for planting on areas with certain slope through silt pit, U-shape frond stacking, terrace and individual terrace. LMI 

has installed the erosion control pole at Matalok Estate, based on the monitoring data (January – july 2012) known the erosion 

level volume was low 0.0013 M 3 /month. Observation CAR.2011.10 and CAR.2011.26 are closed 

Road maintenance program was implemented by LMI in order to control the soil degradation, for example the road side drains 

system in every collection, transport and main roads. 

There was no peat land in LMI operational area, however for low organic soil was implemented by fertilization through research 

centre recommendation. 


4.4 

Practices maintain the quality and availability of surface and ground water. 

Based on field observations of management and monitoring at HCV areas (including riparian), some activities that have already 

SPO – 4006a.4 Page 14 




been conducted, are: 

1. Installation of River Riparian Signboards and restriction of interfering the riparian areas in the form of prohibition warning of 

using toxic materials, poisoning fishes at Pangau river riparian, Block C17 (C008); riverbed, Block D33 (D015); D37, D38 

(D017); Reservoir, Block D35 (D016); MR: BC18, BC22. FG26, EF26, DE26; Block J28, F35. 

2. Installation of river riparian borders, in the form of Oil Palm painted with yellow circle (yellow pallet). 

3. Cultivation on empty areas with type of forest plants. 

4. Monitoring of wildlife and plants every month. 

5. Socialization of HCV management: to fertilization workers, spray workers, residents and officials of Sekayu village; Bakau 

District; Sungai Durian District; Bepara village; Rantau Jaya village Km 13. 

Water management activities in the form of Waste Water Treatment Plant (WWTP) at POM; water quality monitoring. Record of 

the implementation of water quality measurement which conducted monthly by the Laboratory of Commodity and Environmental 

Measurement, Centre of Research and Industrial Standardization; Banjar Baru South Kalimantan, known the water quality still 

accordance with regulation. Minor non conformance CAR.2011.30 is closed. 

Monitoring of use water by mill were periodically conducted every day and well recorded as evaluation for water use efficiency 

program by mill manager. 


4.5 

Pests, diseases, weeds and invasive introduced species are effectively managed using appropriate Integrated Pest 

Management (IPM) techniques. 

Integrated Pest Management plans and program were monitored and updates by LMI in all estates for example Monitoring plan 

(Early Warning System) of rat, caterpillar, bagworms and termites every month that includes the census activity, the extent of 

pests, and control methods that conduct in case of attack. Owls and beneficial plant monitoring is programmed every month. 

Monitoring records of caterpillars in the document Recapitulation of caterpillars Census, for example in the Matalok Estate. 

Based censuses in August 2012 there was no attacks (0.16 caterpillars per frond), the census results are sent to the Plant 

Protection Department MRC. 

LMI does not apply pesticides in controlling rats and termites, however management unit improve the beneficial plant for 

controlling the pest population. 


4.6 

Agrochemicals are used in a way that does not endanger health or the environment. There is no prophylactic use of 

pesticides, except in specific situations identified in national Best Practice guidelines. Where agrochemicals are used 

that are categorized as World Health Organization Type 1A or 1B, or are listed by the Stockholm or Rotterdam 

Conventions, growers are actively seeking to identify alternatives, and this is documented. 

Agrochemical used by LMI were not as WHO type 1A or 1B, however the chemicals were registered by agricultural agency, for 

example: Glyphosate, Fluroxypyr, triclopyr butoxyethyl ester, Methyl metsulfuron and Fluroxypyr. 

LMI ha has applied the revised addition of hazardous storage dated October 22, 2012 to Kotabaru District Environmental Body 

and the recommendations stated LMI can store the hazardous waste in the estate storage for fifteen days and then shipped to a 

licensed hazardous storage in Rantau factory. Based on the results of field visits known the ex pesticide packaging that produce 

from the estates has been sent to the licensed hazardous waste storage in Rantau factory. Minor non conformance 

CAR.2011.11 is closed. 

SPO – 4006a.4 Page 15 




LMI has health check program to factory and estates workers accordance with internal policy was conducted on 5 June 2012 for 

Rantau Estate, 1 March 2012 for Matalok Estate. All health check records were stored properly. Company doctor regularly 

monitored and check to ensure there was no pregnant woman worker and breastfeeding not working in high risk work. Minor 

non conformance CAR.2011.32 is closed 


4.7 

An occupational health and safety plan is documented, effectively communicated and implemented. 

Occupational Health and Safety Policy is listed in the SOP document of Occupational Health and Safety (OHS) No. Policy: 

711/TQEMS-P2K3/07 that Minamas Plantation is committed to become a responsible company in implementing the Occupational 

Health and Safety (OHS) program in all operational activities at estate and mill. 

LMI already has an organization of P2K3 (Advisory committee of Occupational Health and Safety) of estates and mill, and has 

been approved by the Labor and Transmigration Social Service of Kotabaru District. South Kalimantan. The composition of this 

committee consists of Protector (Advisor), Chairman, Vice Chairman, Secretary, Vice Secretary and members. 

Report of Advisory committee of Occupational Health and Safety at Rantau mill on 7 July 2012, which discussed the evaluation of 

findings (issues) and their progress of completion. That report focuses on safety condition of each station (loading ramp, stew, 

dings, nut and kernel, press, clarification, boiler and laboratory). 

LMI provides Employee Social Security (Jamsostek) and life insurance to all employees as the insurance for accidents at work. 

Based on document observation of Matalok Estate and Rantau Estate on October 2012 all workers were registered and provided 

with social security and life insurance. 

LMI has health check program to factory and estates workers accordance with internal policy was conducted on 5 June 2012 for 

Rantau Estate, 1 March 2012 for Matalok Estate. All health check records were stored properly. Company doctor regularly 

monitored and check to ensure there was no pregnant woman worker and breastfeeding not working in high risk work 

Document of work risks analysis towards each of work type station, HIRAC (Hazard Identification Risk Assessment and Control) 

of estates and mill lists the types of work, hazards, and job risk, risk control and advice of Advisory committee of Occupational 

Health and Safety and person in charge is available. 

Records of the training of occupational health and safety program are available, for example boiler operator training, fire fighting 

simulation, occupational health and safety socialization, etc. Records of training were properly stored at LMI office. 

LMI has the SOP of emergency (010/LMI-KD/2010) which describe action steps when there is an emergency situation. Estates 

and mill has determined an assembling point if there is earthquake/fire. Simulation of fire fighting was conducted on July 2012 at 

Rantau factory. 

Checklists or monitoring of Fire extinguisher standardization in each estate (betung, matalok, Rantau, sekayu) and mill (Rantau 

Factory). Those fire extinguishers are distributed to all locations that are easily accessible if needed. Locations of APAR (Fire 

extinguisher) placement include guess house, workshop, central warehouse, generator house, house of employee, polyclinics 

and elementary school. The company has checked the eligibility and condition of APAR (Fire extinguisher). Based on visit to 

Matalok estate, monitoring has been implemented well. 

LMI also provides Personal Protection Equipments for activities in estate and mill, such as helmets, Apron clothes, gloves, 

goggles and masks for spray workers at Matalok estate. First Aid kit also provided by company to workers. 

SPO – 4006a.4 Page 16 




Workers of estate and mill have been involved in First Aid training. The company is able to show the evidence that First Aid 

meeting on 4 may 2011 at Matalok estate, which was attended by mandors, harvester, spraying workers, and general staff has 

been implemented. 

Records of work accident regularly monitored every 3 month. Based on work accident report at Rantau estate there were 9 cases 

in period of July – September 2012 lead to 48 days lost time accident (LTA) and at Matalok estate work accident report there 

were main accident of exposed spines when harvesting. From the accident records LMI has evaluate how to minimize the 

accident happens repeated by safety awareness training for harvesters. 


4.8 

All staff, workers, smallholders and contractors are appropriately trained. 

LMI has performed evaluation of training programs according to staff and employee needs during the surveillance assessment 

several trainings have been conducted, such as basic HCV management training for managers (10-12 October 2011), 

Environment, Safety and Health training (21-27 May 2012), OSH officer (8-17 October 2012), etc. All records of training were 

properly stored and recorded. 

The company does not have plasma scheme. 

LMI has shown a procedure that related to the mechanism of local contractor recruitment. Their performance will be evaluated at 

any time in order to improve their work competency. Each contractor is required to use Personal Protection Equipments while 

working in company’s work area. 


PRINCIPLE #5 Environmental responsibility and conservation of natural resources and biodiversity 

5.1 

Aspects of plantation and mill management, including replanting, that have environmental impacts are identified, and 

plans to negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate 

continuous improvement. 

There is EIA document (EIA, RKL & RPL) approved by the Assessment Commission and Technical team of EIA/UKL-UPL of 

Kotabaru District No. 660/22/BLHD-AMDAL, on 20 August 2010. The Faculty of Forestry, Lambung Mangkurat University, and 

South Kalimantan compiled this document. 

Record of environmental management has been implemented periodically. Latest report was in first semester 2012 (January – 

June 2012). 

There is EIA document (EIA, RKL & RPL) approved by the Assessment Commission and Technical team of EIA/UKL-UPL of 

Kotabaru District No. 660/22/BLHD-AMDAL, on 20 August 2010. The Faculty of Forestry, Lambung Mangkurat University, and 

South Kalimantan compiled this document. Regarding the plan for the activities of Oil Palm processing mill development at the 

plantation area of PT. Laguna Mandiri, area of 20 Ha, capacity of 60 ton FFB/hour. 


5.2 

The status of rare, threatened or endangered species and high conservation value habitats, if any, that exist in the 

plantation or that could be affected by plantation or mill management, shall be identified and their conservation taken 

into account in management plans and operations. 

SPO – 4006a.4 Page 17 




Record of the results of identification to protected species as outlined in the document of HCV assessment of PT. Laguna Mandiri 

for Rantau estate, Matalok estate, Sekayu estate and Betung estate is available. From result of HCV identification, which 

conducted by Sustainable Oil Palm Foundation Indonesia (YASBI), December 2009, there were areas of forest that identified as 

HCV location. HCV identification has evaluated by peer review accordance with HCV identification toolkit Indonesia, June 2008. 

Major non conformance CAR.2012.38 is closed 

The company already has the SOP of Conservation Forest Management No. 007/RSPO-LMI/2010 and according with field 

observation the steps have taken by LMI for manage and protect the HCV area at Rantau Estate and Matalok Estate: 

- Rehabilitation HCV area by planting forest trees (Mahony and sungkai). Records of planting available at Rantau estate office 

- Buffer zone area marked with yellow on the palm, are not allowed for the application of chemical fertilizers, maintenance is 

done manually is not allowed in chemical application. 

- Inventory of flora and fauna existence on company operational ara 

- Socialization to community regarding management and treatment of HCV area and protected flora and fauna. 

- Installation of Sign boards for protecting the flora and fauna species. 

LMI has replaced the signboards and posters of HCV 1.3 and 2.3 (secondary forest) to the HCV area belong on block J-28 

Betung Estate. Observation CAR.2011.18 is close. 

Person who responsible or special officer for manage the HCV area in LMI has been appointed (Suroso) and trained. The 

evidence of appointed letter and training (certificate from Indonesian Palm Oil Commission, on 6 July 2010) is available. 

Observation CAR.2011.32 is closed 


5.3 

Waste is reduced, recycled, re-used and disposed of in an environmentally and socially responsible manner. 

Waste Identification and management adequately generated by estates and mill operation (type of waste, the source of waste, 

the amount of waste manifest). Environmental document (AMDAL) identifies the management and monitoring of waste 

consistently managed according to operational procedures. 

LMI has propose for revision of licensed hazardous waste storage at estate on 22 October 2012 to Kotabaru District 

Environmental Body; and the recommendation from the Environmental Body was the hazardous waste can be stored at estate 

storage for 15 (fifteen) days subsequently shipped to licensed hazardous waste storage at Rantau Factory. Based on field 

observation to Rantau Estate waste storage known the ex pesticide packaging produce from estate activity have sent to licensed 

hazardous waste storage at Rantau factory. Minor non conformance CAR.2011.11 is closed. 

Waste management plan were implemented by TMP, for example: 

a. Land Application at Matalok Estate for 345.80 Ha on block A24 & A25, Blok B20 – B25, Blok C22 – C26, records of 

application was well maintained. 

b. Empty Fruit Bunch application 

c. Domestic wastes from housing were send to landfill and manage in regularly 

d. Fibre and shell from mill were used as boilers fuel. 

Hazardous wastes were well monitored and properly manage at Rantau POM licensed hazardous storage, for example there 

was used oil manifest to licensed hazardous collector (PT Maju) on May 2012 and 7 July 2012. 


5.4 

Efficiency of energy use and use of renewable energy is maximized. 

Available data on the analysis of the renewable energy efficiency (fiber and shell) undertaken on a daily basis and the amount of 

SPO – 4006a.4 Page 18 




renewable energy used per ton of CPO and the efficiency analysis describing the diesel fuel cost savings per month, material 

costs and total cost savings / month. 

Available records of fossil fuel use at LMI and the efficiency analysis in the mill manager monthly monitoring report. The use of 

diesel fuel can be minimized by optimizing the use of all fibers and shells produced by Rantau factory as boiler fuel. 


5.5 

Use of fire for waste disposal and for preparing land for replanting is avoided except in specific situations, as identified 

in the ASEAN guidelines or other regional best practice. 

LMI has a zero burning policy (land clearing without burning) written on the land clearing procedure. The policy is supported with 

the Standard Operating Procedur Manual Policy No 2xx/PTK-LPG/2004 Index Number II/04, on 1 December 2004, and HPO 

(Head Plantation Operations) Memorandum No. POD-UM-150/VII/2010 regarding Monsoon Season Anticipation and Preparation 

Against Fire Hazard and Draught 2010. 

LMI has identified the water sources in company operational area near the potentially fire, it was for anticipation in case there is 

land fire in that area. Field observation presented no evidence of fire usage in the company area. 

LMI has the means and infrastructure for fire fighting, which the fire fighting organization structure for every estate and the 

coordinator is Simeon Bangun and members. Based on field observations at Rantau estate and Matalok Estate, it was known 

that fire land infrastructures and facilities are available and well-functioned (water machine, hose, nozzle, firefighter uniform, 

mask, helmet). 


5.6 

Plans to reduce pollution and emissions, including greenhouse gases, are developed, implemented and monitored. 

LMI has implemented and monitored the waste identification, environmental impact of waste, action plans taken and monitoring 

to reduce pollution and emissions, for example: 

a. Empty fruit bunch application for fertilizing at estates. 

b. Regularly cleaning the boiler ash at fire grade, dust collector and chimney from mill activities. 

c. Air pollution and noise test are regularly checks by accredited institution and regularly report to environment body. LMI 

continues preventive action to protect workers with PPE in the form of Ear Plugs and ear muff at the mill station to avoid 

exposed with high level noise 

d. Mill effluent management which informs debit of wastewater produced from WWTP and debit of mill effluent treated 13 

ponds (Deoling pond, Cooling Pond, anaerobic pond, mixing pond, aeration pond) and mill effluent produce was applied to 

land application. 

BOD monitoring for mill effluent which applied to land application still accordance with the regulation (BOD 5 level under 5,000 

mg/l). Mill effluent at Rantau Factory was regularly monitored every day (location, block, time, volume, hectarage). Effluent 

volume was counted by flow meter tools to monitored average of effluent applied to land. 


PRINCIPLE #6 Responsible consideration of employees and of individuals and communities affected by growers and 

mills 

6.1 

Aspects of plantation and mill management, including replanting, that have social impacts are identified in a 

participatory way, and plans to mitigate the negative impacts and promote the positive ones are made, implemented 

and monitored, to demonstrate the continuous improvement. 

SPO – 4006a.4 Page 19 




Available environmental and social impact documents/AMDAL (1995), RKL / RPL and Social Impact Assessment (2010) 

conducted by doncultant (YASBI) that includes information important social impact caused by the operation of oil palm estate and 

Rantau Factory which involves the participation of local community through Focus Group Discussion (FGD). 

Company commitment by implemented management and monitoring of social impact year 2011, for example involvement on 

community development plan consultation Sungai Durian sub district 15 February 2011and meetings with Mangka village 

representative on 4 April 2011. LMI also implemented social activity by periodically and opened opportunity to local children and 

other related stakeholders in form of scholarship program to junior high school (SMP) and high school (SMA) students. Minor 

non conformance CAR.2011.20 is closed 

Revision of Social Environment Impact Assessment (AMDAL) in case of addition of new Betung Palm Oil Mill capacity 45 

tonnes/hour which still in development progress, this not significantly change the social aspect in order the mill still in LMI 

operational area, however there will be a positive impact for workers absorption opportunity. 

Social impact management and monitoring has been reported periodically to the district environment body and evidence of the 

local community’s involvement and participation on directly affected by LMI operations. Based on the interviews with the villagers 

around LMI plantation involvement between the LMI and the community has been held in the management and monitoring of 

social impacts. 

LMI do not have smallholders scheme. 


6.2 

There are open and transparent methods for communication and consultation between growers and/or millers, local 

communities and other affected or interested parties. 

LMI has Communicated and Consultation with the community. Records of Communication with Stakeholders, Records of 

Communication with Rantau Jaya villagers, Rantau Budha villagers, Terombong Sari villagers and Bepara villagers has been 

maintained. Observation CAR.2011.33 is closed. 

Every estates has their stakeholders list for example at Rantau estate (25 stakeholders), Matalok estate (22 stakeholders) 

including governmental agency, community, villagers, NGO, contractors, plantation companies, labour union, etc. 

LMI providing to record request and response related to communities social aspect. Evidence of community aspiration and 

response are well record at community aspiration book. LMI have personal to responsible for communication and consultation 

with communities at plantation service department. 


6.3 

There is a mutually agreed and documented system for dealing with complaints and grievances, which is implemented 

and accepted by all parties. 

The company has procedure of handling mechanism for complaints towards management (009/LMI-MPKTP/2010) on 16 

December 2010 page 4 on the stakeholder complaints handling flowchart. The mechanism implementation for example has been 

done by involve the village head, customary head of Sekayu village and Betung village on 24 June 2011 at Sekayu estate office 

regarding community complaint of smallholders scheme development (plasma). 

Minor non conformance CAR.2011.34 is closed. 


6.4 

Any negotiations concerning compensation for loss of legal or customary rights are dealt with through a documented 

system that enables indigenous peoples, local communities and other stakeholders to express their views through their 

own representative institutions. 

SPO – 4006a.4 Page 20 




There is a procedure available regarding the compensation specified in the Procedures for Handling Conflict (059/LMI-PK/10) 

dated 16 December 2010 which states in Point 6 that (Conference) involving Estate Manager, PSD, Landowners, Village 

Authorities and or Muspika as well as Research Division for measurement. 

The result is the Agreement on Compensatory Rate and Payment Plan that comes with the payment receipt and Minutes of 

Conference.. 

All records of compensation has been well recorded and documented in the following forms; Minutes of Conference, Statement 

of Waiver of Land, Statement of Acceptance of conference result and Location Map of compensable area according to 

measurements. 


6.5 

Pay and conditions for employees and for employees of contractors always meet at least legal or industry minimum 

standards and are sufficient to provide decent living wages. 

LMI has respect the regulation related to plantation operational including the welfare aspect for example application of minimum 

wage regulation accordance to South Kalimantan Governor decree on year 2012. Based on observation to worker payments slip 

at Rantau Estate and Matalok Estate the workers received exceed from the minimum wage. 

There ais company regulation applied at LMI, which are the Company’s Regulations set by company involve the labour 

representative for consideration, advice and inputs regarding workers rights and obligations. 

LMI provides facilities for workers housing, school, clean water; health facilities/clinics, school transport and clean water. During 

the surveillance observations known the facilities provided by LMI in properly condition and have build new housing. 

LMI shows the document Letter of Agreement with contractor explain the provisions of labor (employment) and safety policies in 

Indonesia, Social Security (JAMSOSTEK) to the workers of the contractor to be responsibilities of second parties (contractors), 

contractor must have the certificate of any operator licensing, classification and qualification according to existing regulations and 

contractor responsible for providing the tools and facilities to maintain the safety of contractor workers; however on article 10.4 of 

the contractor agreement stated the contractor has to followed related the labour laws and regulations. Observation CAR.2011.23 

is closed. 


6.6 

The employer respects the right of all personnel to form and join trade unions of their choice and to bargain collectively. 

Where the right to freedom of association and collective bargaining are restricted under law, the employer facilitates 

parallel means of independent and free association and bargaining for all such personnel. 

In the document of Guidelines for Sustainable Plantation Management (No. POLICY: 724/TQEM-SPM/09) issued by the 

Management of Minamas Plantation on 8 November 2010, at point 5 a Social Policy mentioned that The company is expected to 

respect the rights of all employees to form and join trade unions of their choice and to bargain collectively. 

Labour unions of PT LMI formed on 22 April 2012, located in the Employee Hall at Housing of POM Rantau . the Agenda at the 

meeting was the formation of labor union for the POM employees that was attended by 49 people, records of meeting available 

at Rantau mill office. 


6.7 

Children are not employed or exploited. Work by children is acceptable on family farms, under adult supervision, and 

when not interfering with education program. Children are not exposed to hazardous working conditions. 

SPO – 4006a.4 Page 21 




In the document of Guidelines for Sustainable Plantation Management (No. POLICY: 724/TQEM-SPM/09) issued by the 

Management of Minamas Plantation on 8 November 2010, stated that company did not take labor (children) under age 18 years 

(



6.11 

Growers and millers contribute to local sustainable development wherever appropriate. 

Plan and Realization of CSR Program that conducted by the company, for example; 

a. Matalok Estate; Until the month of September 2012 has been realized of CSR programs include Education, Health, 

Economic, Social, Cultural and Sports. 

b. Rantau Estate; Until the month of September 2012 has been realized of CSR programs include Education, Economic, 

Welfare and Governance 


PRINCIPLE #7 Responsible development of new plantings 

7.1 

A comprehensive and participatory independent social and environmental assessment is undertaken prior to 

establishing new plantings or operations, or expanding existing ones, and the results incorporated into planning, 

management and operations. 

The documents of Environmental Management Plan (RKL) and Environmental Monitoring Plan (RPL) are available covering the 

analysis of positive and negative aspects on the social and environmental, as well as the participation from those affected (local 

people). 

PT LMI does not have plasma scheme 


7.2 

Soil surveys and topographic information are used for site planning in the establishment of new plantings, and the 

results are incorporated into plans and operations. 

Available of soil survey result document for Rantau and Matalok estate include appropriate with topografy, climate, soil variety, 

soil fertility. 

Based on internal decree No. 039/RST-Bjb/06/2011 Date June, 13 th 2011 concerning marginal land map RTE and MLE and Semi 

Detail Soil survey document and Land appropiate class evaluation for Palm MLE and RTE declare soil survey result (Tinjau and 

Detil) had been done by MRC Banjarbaru, there no marginal land in work area PT LMI. Therefore, not available Marginal Land 

Map in PT LMI estate. Minor non conformance CAR.2011.26 is closed 


7.3 

New plantings since November 2005, have not replaced primary forest or any area required to maintain or enhance one 

or more High Conservation Values. 

Factory expansion in 2010 (PKS Betung), based on dcument of enviromental impact analysis (Amdal 660/22/BLHD.AMDAL date 

August 20 th 2010, declare that based on Regency Spatial Plan Map (RTRWK) of new city 2002 and Province Spatial Plan Map 

(RTRWP) of South Kalimantan, PT LMI area in Regiopn of Food Yearly Plant Cultivation (KBTTP). 

New planting after November 2007 in Matalok estate (108 Ha/2008) in block D019 (108 Ha) in outside area that identified as 

HCV area. Based on document of Replanting Programe, there no plant extension and new replanting begin in 2017/2018 


7.4 

Extensive planting on steep terrain, and/or on marginal and fragile soils, is avoided. 

Based on result of detil land survey in Rantau and Matalok estate, no identified marginal land class. 


SPO – 4006a.4 Page 23 




7.5 

No new plantings are established on local peoples’ land without their free, prior and informed consent, dealt with 

through a documented system that enables indigenous peoples, local communities and other stakeholders to express 

their views through their own representative institutions. 

Company have Environmental Impact Analysis Document (ANDAL) agree with decree No. 008/ANDAL/BA/II/95 date February 

27 th 1995 with width study area 77.290 Ha consisting of 4 company (Langgeng Muara Makmur, Laguna Mandiri, Paripurna 

Swakarsa dan Swadaya Andika). The study coverage is 21.400 Ha, each factory capacity in AMDAL are 60 ton TBS/hours. 

RKL/RPL document approved by Agribusiness Unit, Agriculture Departement date November 7h 1994. 


7.6 

Local people are compensated for any agreed land acquisitions and relinquishment of rights, subject to their free, prior 

and informed consent and negotiated agreements. 

There no new plantingsafter plantings in 2007 until first surveillance conducted. 


7.7 

Use of fire in the preparation of new plantings is avoided other than in specific situations, as identified in the ASEAN 

guidelines or other regional best practice. 

Company unused buring methode when land opening. Company have SOP of fire control (037/LMI-PK/10), evacuation 

mechanism when fire happen in SOP 726/ TQEM-ESH : Step recovered emergency situation in 725/TQEM-ESH/10 


PRINCIPLE #8 Commitment to continuous improvement in key areas of activity 

8.1 

Growers and millers regularly monitor and review their activities and develop and implement action plans that allow 

demonstrable continuous improvement in key operations. 

Revision of EIA was done because there was an increase of 1 unit Palm Oil Mill that is Betung POM, according to EIA (EIA, 

Management Plan & Monitoring Plan) No. 660/22/BLHD-AMDAL, dated Agustus 20 th , 2010. 

Document Social Impact Assessment PT LMI that executed by Yayasan Kelapa Sawit Berkelanjutan Indonesia (YASBI) in 2010 is 

a form of Social Impact Assessment. The document preparation has been involved community with Focus Group Discussion 

(FGD). 

There is Action Plan of the RSPO Assessment Audit Findings Stage-2 at PT LMI which is a document of the evaluation results, 

compliance progress and current status of the evaluations result that conducted on 30 September 2011. 


SPO – 4006a.4 Page 24 




3.2. Summary of Assessment Report of Supply Chain 

Clause 

CPO Mills Mass Balance Model Requirements 

1 Documented Procedures 

1.1 

The facility shall have written procedures and/or work instructions to ensure the implementation of all the elements specified 

in these requirements. This shall include at minimum the following: 

a) Complete and up to date procedures covering the implementation of all the elements in these requirements. 

b) The name of the person having 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 facilities 

procedures for the implementation of this standard. 

a. There is procedure of Supply Chain RSPO/65/SCPP/LMI on 1 March 2012, aiming to identify the raw materials and end 

products in order to know the relationship of raw materials and the product quality to traceability the product. The 

procedure is applicable from the receipt of raw materials (FFB), the production process and product delivery process to 

buyers in Rantau factory (PT LMI). The form of supply chain applied to this procedure is the mass balance. 

b. The personnel responsible for implementation of this requirement are: 

- Mill Manager who is responsible for storing and maintaining all documents used in the production process and the 

quality of the end products, verifying the status of the products delivered to the buyer and provide adequate training in 

supply chain certification requirements to all staffs. 

- PSQM Assistant who is responsible for the quality inspection of FFB (grading) in the POM and making a daily 

recapitulation of FFB quality inspection, monitoring shipment and loading / unloading Palm Product, and witnessing the 

making of Minutes of CPO & Palm Kernel shipping. 

- Foreman / Laboratory Assistant who is responsible for analyzing and testing the quality of raw materials and products 

at all stages of the POM production process, storing, maintaining and distributing the results of analysis and quality 

testing of raw materials and products. 

- Logistic Department who is responsible for transportation of CPO & Palm kernel from POM to bulking station, 

handling and storage of CPO and Palm Kernel in bulking station area. 

RSPO Certified has been done at Rantau Estate weight card (Ticket No. 118075) and RSPO non certified at KKPA Sungai 

Cengal weight card (Ticket No. 120201) 

Declaration-2 (1 st July 2012) stated that PT LMI has had procedure and work instruction to make sure implementation of 

Supply Chain System with Mass Balance Model. 

Non conformance CAR.2012.39 is closed 

1.2 

The facility shall have documented procedures for receiving and processing certified and non-certified FFBs. 

The company doesn’t include all elements of SCCS at procedure of Supply Chain and Products traceability 

(RSPO/65/SCPP/LMI, document code of P&C RSPO Procedure VIII.CA.1, 1 st March 2012). 






SPO – 4006a.4 Page 25 




2 Purchasing and goods in 

2.1 

The facility shall verify and document the volumes of certified and non-certified FFBs received. 

Company received material as FFB certifed or uncertified, but in each the shipping document (DO, Weight card, etc) not 

differentiated between certified and uncertified FFB. 




2.2 

The facility shall inform the CB immediately if there is a projected overproduction. 

Rantau POM recognizes and claims the certified products for a year as much as 189,556 tons of CPO and 42,172 tons of 

Palm Kernel in the period of 30 December 2011 to 29 December 2012. 

When the first Surveillance Audit was conducted certified CPO and Palm Kernel has not overproduction from POM may 

claim. PT. LMI is committed to providing information to Mutuagung Lestari regarding production of CPO and Palm Kernel 

which exceeded those projected. 


3 Record keeping 

3.1 

The facility shall maintain accurate, complete, up-to-date and accessible records and reports covering all aspects of these 

requirements. 

The entire records and reports have been created and stored by the company. Document storage system in the form of soft 

copy in the System Application Program (SAP) program, Sime-Weight Program for weighing FFB, CPO and Palm Kernel, 

FFB receipt reports at the mill to determine the quality of FFB to be processed, while the documents in the form of hard copy 

(print out) are stored in the administration room of Rantau POM. 


3.2 

Retention times for all records and reports shall be at least five (5) years. 

In accordance with SOP of Supply Chain RSPO/65/SCPP/LMI of Rantau POM the retention time of documents related to 

supply chain is 5 years. 


3.3 

(a) The facility shall record and balance all receipts of RSPO certified FFB and deliveries of RSPO certified CPO, PKO and 

palm kernel meal on a three-monthly basis. 

(b) All volumes of palm oil and palm kernel oil that are delivered are deducted from the material accounting system 

according to conversion ratios stated by RSPO. 

(c) The facility can only deliver Mass Balance sales from a positive stock. However, a facility is allowed to sell short. 

(a) Monthly records available all receipts of RSPO certified FFB and deliveries of RSPO certified CPO, PKO and palm 

kernel. 

(b) All delivered volumes of palm oil and palm kernel have been deducted from the material accounting system according to 

conversion ratios stated by RSPO. 

(c) The organization only delivers mass balance sales from a positive stock. 

The company has been performed accounting the certified and uncertified material in the production daily report (CPO/KPO 

proccesing). 

SPO – 4006a.4 Page 26 





3.4 

The following trade names should be used and specified in relevant documents, e.g. purchase and sales contracts, e.g. 

*product name*/MB or Mass Balance. The supply chain model used should be clearly indicated. 

Outgoing documents specifies product name as mass balance, however Rantau factory, LMI has not send CPO/kernel with 

RSPO certifed until November 2012. 


3.5 

In cases where a mill outsources activities to an independent palm kernel crush, the crush still falls under the responsibility 

of the mill and does not need to be separately certified. The mill has to ensure that the crush is covered through a signed 

and enforceable agreement. 

Rantau Factory, LMI only made a Palm Kernel sale. 

4 Sales and goods out 

4.1 

The facility shall ensure that all sales invoices issued for RSPO palm oil delivered include the following information: 

(a) The name and address of the buyer 

(b) The date on which the invoice was issued 

(c) A description of the product 

(d) The quantity of the product delivered 

(e) Reference to related transport documentation 

The facility dispatches the product to IOI Edible Oils Sdn Bhd , Sandakan for their sales. POM documentation will state that 

the product is dispatched. 

Documents available : 

a. Name and buyer address 

b. Report of CPO shipping dates 

c. Product description was CPO, CPO quality. 

d. Quantity of product in kilogram amount 

e. Transport documentation, sounding report describe product specification, investigation report, shipment report.. 

However Rantau factory, LMI has not send CPO/kernel with RSPO certifed until November 2012. 

5 Training 


5.1 

The facility shell specifies and provides the training for all staff as required to implement the requirements of the Supply 

Chain Certification Systems. 

There are recorded evidences that LMI – Rantau factory has conducted training for staffs which is required to implement the 

requirements of Supply Chain Certification System. The recording evidences are in the form of: 

List of Participants Attending Supply Chain Certification Training of Rantau factory (Number of Participants: 23 persons). 

Photos of the activity and training Materials available. 

SPO – 4006a.4 Page 27 




6 Claims 


6.1 

The facility shall only make claims regarding the use of or support of RSPO certified oil palm products that are in compliance 

with the RSPO Rules for Communications and Claims. 



In Declaration-7 has been stated that “all claim of CPO and PK Certified, has complied with 

Communication and Claims. 


RSPO Guidelines for 

SPO – 4006a.4 Page 28 


3.3. Conformity Checklist of Certificate and Logo Use 



1. Evidence of permission or approval certificate and logo from Certification Body which 

submitted by Client 

S-1 LMI has had approval / permit to use the certificate with the number MUTU-RSPO/009. 

X or√ 

2. Implementation of certificate and logo used by Client comply with size and type (shape) 

against Guideline of Logo Use 

S-1 Not Applicable; 

The Company does not use the logo on-product and off-product in the scope of PT Laguna Mandiri. 

3. Implementation of Certificate and Logo is not used on product 


X or√ 

X or√ 

4. Controlling of Certificate and Logo, including withdrawing inappropriate logo. 


X or√ 

SPO – 4006a.4 Page 29 




3.4. Summary of Time Bound Plan Verification of the RSPO Certification 

Total companies visited (0.8 √Y) Where Y is the total of one holding company 

The company name : Mustika POM and PT Sajang Heulang full manage scheme smallholders (KKPA) 

2.1 There is compliance with all applicable local, national and ratified international laws and 

regulations. 

Pustika POM and PT Sajang Heulang full manage scheme smallholders are compliance with 

applicable laws and regulations. 

2.2 The right to use the land can be demonstrated, and is not legitimately contested by local 

communities with demonstrable rights. 

PT Sajang Heulang scheme smallholders has demonstrated land use and not legitimately 

contested by local communities. 

6.3 There is a mutually agreed and documented system for dealing with complaints and 

grievances, which is implemented and accepted by all parties. 

PT Sajang Heulang scheme smallholders has documented system for dealing with complaints 

and grievances, which is implemented and accepted by all parties 

6.4 Any negotiations concerning compensation for loss of legal or customary rights are dealt 

with through a documented system that enables indigenous peoples, local communities 

and other stakeholders to express their views through their own representative 

institutions. 

PT Sajang Heulang scheme smallholders has SOP of Land Compensation Standard and 

Identification No. 001/PSDS-L&AS, describe Land identification, settlement patterns, Consultative 

Process Claims, Payment and Reporting Procedures. 

7.3 New plantings since November 2005, have not replaced primary forest or any area 

required to maintain or enhance one or more High Conservation Values. 

PT Sajang Heulang scheme smallholders have not replaced primary forest or any area required 

to maintain or enhance one or more High Conservation Values 

7.5 No new plantings are established on local peoples’ land without their free, prior and 

informed consent, dealt with through a documented system that enables indigenous 

peoples, local communities and other stakeholders to express their views through their 

own representative institutions. 

No land compensation process due the entire smallholders’ scheme plantation land is the 

property of their respective member smallholders (land tenure is a Certificate of Ownership). PT 

Sajang Heulang operating the operational activity (full manage scheme smallholders) 

7.6 Local people are compensated for any agreed land acquisitions and relinquishment of 

rights, subject to their free, prior and informed consent and negotiated agreements. 

No land compensation process due the entire smallholders’ scheme plantation land is the 

property of their respective member smallholders (land tenure is a Certificate of Ownership). PT 

Sajang Heulang operating the operational activity (full manage scheme smallholders) 

X or√ 

√ 

X or√ 

√ 

X or√ 

√ 

X or√ 

√ 

X or√ 

√ 

X or√ 

√ 

X or√ 

√ 

SPO – 4006a.4 Page 30 




3.5 Identification of Findings, Corrective Action, Observations, Opportunity for Improvement and Noteworthy Positive Components. 

During the Stage-2 initial assessment 8 (eight) nonconformities were assigned against Minor Compliance Indicators and 6 (six) opportunities for improvement were 

identified. Further explanation of the non-conformities raised and corrective actions taken by the company are provided in this section. The company prepared a corrective 

action that was reviewed and accepted by MUTU and corrective actions taken to close all non-conformities have been verified during the surveillance-1 assessment. 

3.5.1 Identification of Findings, Corrective Actions and Observations at Stage-2 Assessment 

CAR 

No 

2011. 

06 

Ref Std Finding Area Grade 

Time 

Limits 

Corrective Action Observation Status 

Minor The company has not evaluated LMI Minor S-1 The company must evaluate The company has conducted a 

2.1.2 applicable regulations. 

compliance with applicable thorough adjustment to the 


regulatory changes as many as 97 

regulations but they are still in the 

evaluation process of the 

distribution, the evaluation process 

of the material in the regulations has 

not been done. 

22 October 2012. 

Documented system by LMI which 

provides information and legal 

requirement that must be fulfilled by 

companies contained in SOP 

guidelines for Sustainable Plantation 

Management Number724/TQEM- 

SPMS/09 in Chapter 1.2 explained 

compliance with the Act and 

Regulation and Legal Requirements 

Closing 

Date 

Closed 22 

October 

2012 

2011. 

10 

Minor 

4.3.1 

The organization has provided 

maps of marginal land of Sekayu 

and Betung estate but the maps 

for Matalok and Rantau Estate 

RTE 

Observ 

ation 

S-1 The organization needs to 

provide maps of marginal land 

in the working area of Rantau 

and Matalok estate. 

LMI has implemented the 

management for planting on areas 

with certain slope through silt pit, U- 

shape frond stacking, terrace and 

SPO – 4006a.4 Page 31 


Closed 20 

October 

2012



CAR 

No 

2011. 

11 


Major 

4.6.4 

Major 

5.3.2 

have not been available. 

The hazardous waste temporary 

storage room in the estate has not 

had license yet from relevant 

agencies. The company stores 

used pesticides packaging 

exceeded the maximum retention 

time of 90 days. 

Time 

Limits 

RTE Minor S-1 The organization needs to store 

hazardous waste in a location 

that already has license from 

relevant agencies. The 

retention time of used pesticide 

packaging is in accordance 

with Government Regulation 

No. 18 Year 1999. 


individual terrace. LMI has installed 

the erosion control pole at Matalok 

Estate 

Based on the results of field visits 

known the ex pesticide packaging 

that produce from the estates has 

been sent to the licensed hazardous 

waste storage in Rantau factory 

Closing 

Date 

Closed 23 

October 

2012 

2011. 

18 

Minor 

5.2.1 

LMI has installed signboard in 

location of identified HCV. For 

example in Block C 008, D 15 and 

D 016. The socialization to all 

employees and the community 

have been conducted at the time 

of preparation of HCV 

Identification documents but 

posters / signboards on existence 

of protected species have not 

been installed in the area of HCV / 

other locations that are accessible 

to the public. 

RSPO 

Secreta 

riat 

RTE, 

HCV 

Area of 

Sungai 

Pinang 

and 

HCV 

1.3 in 

Sekayu 

Estate 

Observ 


S-1 LMI has to disseminate the 

presence of protected flora and 

fauna in form of signboards, 

posters, publications, and other 

media to the public and 

employees. 

LMI has replaced the signboards 

and posters of HCV 1.3 and 2.3 

(secondary forest) to the HCV area 

belong on block J-28 Betung Estate 

Closed 23 

October 

2012 

2011. 

20 

Minor 

6.1.2 

LMI has not prepared the 

Management / Monitoring Plan of 

Social Impact Analysis results of 

PT LMI as recommended by the 

Foundation of Sustainable Oil 

Palm Indonesia (YASBI) in 2010 

RTE Minor S-1 The company must prepare a 

document of management and 

monitoring plan of social impact 

as recommended in Social 

Impact Assessment. 

Company commitment by 

implemented management and 

monitoring of social impact year 

2011, for example involvement on 

community development plan 

consultation Sungai Durian sub 

district 15 February 2011and 

SPO – 4006a.4 Page 32 


Closed 22 

October 

2012

CAR 

No 

2011. 

23 

2011. 

26 


Minor 

6.5.2 

Major 

7.2.1 

Minor 

7.2.2 

Minor 

4.3.5 

On Mutual Working Agreement 

with the contractor, it has been 

required regarding compliance with 

OHS, but it is not fully expressed 

on compliance with applicable 

labor regulations in general. 

A detailed soil survey needs to be 

done in Matalok estate as a 

reference in performing the 

appropriate actions for the soil in 

accordance with physical, 

chemical and soil conditions 

RTE 

D019 

Matalok 

Estate 

Observ 


Time 

Limits 




S-1 LMI has to review Mutual 

Working Agreement (SPK) with 

the contractor by taking into 

account the applicable labor 


Minor S-1 There is a new planting area of 

108 ha (2008) at MLE in which 

detailed soil survey has not yet 

done. 

meetings with Mangka village 

representative on 4 April 2011. LMI 

also implemented social activity by 

periodically and opened opportunity 

to local children and other related 

stakeholders in form of scholarship 

program to junior high school (SMP) 

and high school (SMA) students 

LMI shows the document Letter of 

Agreement with contractor explain 

the provisions of labor (employment) 

and safety policies in Indonesia, 

Social Security (JAMSOSTEK) to 

the workers of the contractor to be 

responsibilities of second parties 

(contractors), contractor must have 

the certificate of any operator 

licensing, classification and 

qualification according to existing 

regulations and contractor 

responsible for providing the tools 

and facilities to maintain the safety 

of contractor workers; however on 

article 10.4 of the contractor 

agreement stated the contractor has 

to followed related the labour laws 

and regulations 

Based on marginal land map RTE 

and MLE and Semi Detail Soil 

survey document and Land 

appropiate class evaluation for Palm 

MLE and RTE declare soil survey 

result (Tinjau and Detil) had been 

SPO – 4006a.4 Page 33 


Closing 

Date 

Closed 22 

October 

2012 

Closed 20 

October 

2012



CAR 

No 

2011. 

29 


Minor 

4.2.1 

Major 

2.2.2 

including: soil analysis, soil fertility 

and slope. 

Based on the results of public 

consultations and interviews with 

representatives of Betung and 

Sekayu Baru Village, there was 

still things not understood by the 

public about the existence of Land 

Use Rights (HGU) boundaries. 

The company has identified the 

existence of Land Use Rights 

poles in all of the estates with the 

results that there are only 17% 

Land Use Rights poles left in the 

field and the rest is missing. 

Time 

Limits 

LMI Minor The company must perform the 

installation, the identification 

and maintenance of Land Use 

Rights (HGU) poles, which are 

the legal boundary of the work 

area. 


done by MRC Banjarbaru, there no 

marginal land in work area PT LMI. 

Therefore, not available Marginal 

Land Map in PT LMI estate 

LMI has shown a document the 

boundary in every estate, in the form 

of maps and photographs of the 

pole installation. Based on field 

visits boundary poles can be found 

easily and clearly demarcated 

Closing 

Date 

Closed 20 

October 

2012 

The Company already re-identified 

the existence of Land Use Rights 

poles (large poles) thoroughly in 

all Estates on 6 June 2011 which 

was done by Assistant of Estates 

with the following results; 

- From the 118 pieces large poles 

in pole book documents, 95 pieces 

of which still existed in the field 

and 23 units was missing. 

- Physical conditions of existing 

poles: some of them were still in 

good condition and the identities 

were readable. The rest were 

damaged / the identities were not 

SPO – 4006a.4 Page 34 




CAR 

No 

2011. 

30 


Minor 

4.4.2 

readable. 

- Small Land use rights (HGU) 

poles have not been re-identified 

to ascertain the condition and the 

existence. 

LMI has been measuring of 

monitoring well water quality, waste 

wells and ponds inhabitants. 

However, based on the results of 

public consultation, there are 

complaints about surface water. The 

company has not made 

measurements of river water quality. 

Time 

Limits 

LMI Minor S-1 LMI must conduct quality 

measurement to river water. 


Water management activities in the 

form of Waste Water Treatment 

Plant (WWTP) at POM; water quality 

monitoring. Record of the 

implementation of water quality 

measurement which conducted 

monthly by the Laboratory of 

Commodity and Environmental 

Measurement, Centre of Research 

and Industrial Standardization; 

Banjar Baru South Kalimantan, 

known the water quality still 

accordance with regulation 

Closing 

Date 

Closed 22 

October 

2012 

2011. 

31 

Minor 

4.6.3 

Based on interviews with spray 

team of Betung estate Division III, 

Mrs. Nuryati, 36 years old who are 

breastfeeding (23 months) work in 

spray team (water filler officer). 

The company has moved Mrs. 

Nuryati to maintenance work. 

Betung 

Estate 

Minor S-1 LMI should review the 

mechanisms of protection of 

pregnant and lactating women 

so that they are not involved in 

jobs, which risk exposed to 

chemicals. 

LMI has health check program to 

factory and estates workers 

accordance with internal policy was 

conducted on 5 June 2012 for 

Rantau Estate, 1 March 2012 for 

Matalok Estate. All health check 

records were stored properly. 

Company doctor regularly monitored 

and check to ensure there was no 

pregnant woman worker and 

breastfeeding not working in high 

risk work 

Closed 20 

October 

2012 

SPO – 4006a.4 Page 35 




CAR 

No 

2011. 

32 

2011. 

33 

2011. 

34 


Minor 

5.2.2 

Major 

6.2.1 

Minor 

6.3.1 

There is not enough evidence that 

the instructors (Suroso and Sholeh) 

that provide HCV training to special 

officers appointed to manage 

protected, rare, endangered species 

and HCV habitat HCV, have 

attended HCV training. 

Based on Public Consultations held 

in estates, which were attended by 

Head of Pamukan Utara Sub 

district, Head of Sungai Durian Sub 

district, Head of Villages, Tribe 

Leaders and Community Leaders 

and interview with community 

leaders in Villages, it is stated that 

most of them have not got 

socialization on communication 

procedures of PT LMI. 

Until Stage 2, there has not been 

enough evidence that the 

company has responded 

complaints by involving parties 

complaining (it is still limited to one 

party – Head of Sekayu Baru 

Village) 

There is a demand from 

community of Sekayu Baru Village 

and Betung Village via Letter No. 

004/KAD-Btg/IV/2011 or 002/AAD- 

Skb/IV/2011 dated 23 April 2011, 

followed up by conducting a 

RTE 

RTE 

Observ 


Observ 


Time 

Limits 


S-1 Person who responsible or special 

officer for manage the HCV area in 

LMI has been appointed (Suroso) 

and trained. The evidence of 

appointed letter and training 

(certificate from Indonesian Palm Oil 

Commission, on 6 July 2010) is 

available 

S-1 LMI has Communicated and 

Consultation with the community. 

Records of Communication with 

Stakeholders, Records of 

Communication with Rantau Jaya 

villagers, Rantau Budha villagers, 

Terombong Sari villagers and 

Bepara villagers has been 

maintained 

LMI Minor S-1 LMI has procedure of handling 

mechanism for complaints towards 

management 

(009/LMI- 

MPKTP/2010) on 16 December 

2010 page 4 on the stakeholder 

complaints handling flowchart. The 

mechanism implementation for 

example has been done by involve 

the village head, customary head of 

Sekayu village and Betung village 

on 24 June 2011 at Sekayu estate 

office regarding community 

complaint of smallholders scheme 

development (plasma) 

Closing 

Date 

Closed 22 

October 

2012 

Closed 22 

October 

2012 

Closed 20 

October 

2012 

SPO – 4006a.4 Page 36 




CAR 

No 


meeting with Head of Sekayu Baru 

Village on 25 April 2011, then the 

company communicated with 

Local House of Representatives 

(DPRD) of Kotabaru District. On 

27 April 2011 via Letter of Local 

House of Representatives (DPRD) 

Kotabaru No. 005/82/DPRD, Local 


invited PT LMI to hold a hearing 

on 30 May 2011; Meeting was not 

fully conducted. PT LMI could not 

attend the hearing with Local 


Kotabaru (Via Letter No. 383/LMI- 

/Um/L&ASD/BJB/V/3011 dated 26 

May 2011), and requested to be 

postponed until 14 June 2011 

related to implementation of the 

Internal Official Meeting of PT LMI 

which had been scheduled 

beforehand. 

In the letter, the demand of 

traditional land rights is a demand 

for development of community’s oil 

palm estates through plasma 

programs. 

The company has to conduct a 

resolution of the demand of 

Sekayu Baru Village and Betung 

Village communities by involving 

stakeholders in accordance with 

Mechanism of complaints 

Time 

Limits 


SPO – 4006a.4 Page 37 


Closing 

Date



CAR 

No 

2011. 

35 


Minor 

6.9.2 

resolution of management 

(009/LMI-MPKTP/2010) dated 16 

December 2010 as a reference to 

handle complaints from 

stakeholders. Negotiation 

conducted is still limited to Head of 

Sekayu Baru Village, it has not 

involved Head of Betung Village 

not Tribe Chief of Betung and 

Sekayu Baru as the complaining 

parties. 

Based on the results of interviews 

with Gender Commission and 

spray team, the company still 

needs to provide understanding 

and socialization to employees 

regarding the essential of 

protection for female policy. 

LMI 

Observ 


Time 

Limits 


S-1 Doctors recommended employees 

known to be pregnant and 

breastfeeding not to work in the 

spray and fertilizer. Based on 

interviews with spraying team of 

matalok estate, they have 

understood the policy about 

protection reproductive rights 

Closing 

Date 

Closed 23 

October 

2012 

SPO – 4006a.4 Page 38 




3.5.2 Identification of Findings, Corrective Actions and Observations at Surveillance-1 Assessment 

CAR 

No 

2012. 

38 

2012. 

39 

2012. 

40 

During the Surveillance-1 assessment 1 (one) nonconformity was assigned against Major Compliance Indicator, 7 (seven) nonconformities were assigned against supply 

chain mass balance module D Indicators and 4 (four) opportunities for improvement were identified. Further explanation of the non-conformities raised and corrective actions 

taken by the company are provided in this section. The company prepared a corrective action that was reviewed and accepted by MUTU and corrective actions taken to 

close all non-conformities shall be verified during the next surveillance-2 assessment. 

Time 

Limits 

Estate Major 60 

days 


Major 

5.2.1 

SCCS 

1.1.a; 

1.2 

SCCS 

2.1 

Peer Review document 

identification of HCV 

The company has compiled a 

document identification of HCV that 

conducted by YASBI in December 

2009, but not enough evidence that 

the HCV document had been review 

accordance with HCV toolkit June 

2008. 

Documented Procedures 

The company doesn’t include all 

elements of SCCS at procedure of 

Supply Chain and Products 

traceability (RSPO/65/SCPP/LMI, 

document code of P&C RSPO 

Procedure VIII.CA.1, 1 st March 2012) 

Purchasing and goods in 

Pembelian dan Penerimaan 

Mill NC 1 

month 

Mill NC 1 



Document identification of HCV 

must be reviewed accordance 

with HCV toolkit June 2008. 

The company need to include or 

explain all elements of the SCCS 

requirements in procedure 

specifically 

The company shall be ensure that 

the material of certified and 

3 rd November 2012 

The company has reviewed the 

HCV document identification on 

12 th October 2012, in 

accordance with the letter No. 

028/SK-YASBI/X/2012. 

17 th November 2012 

Inclusion stamp RSPO Certified 

has been done at Rantau Estate 

weight card (Ticket No. 118075) 

and RSPO non certified at KKPA 

Sungai Cengal weight card 

(Ticket No. 120201) 

Declaration-2 (1 st July 2012) 

stated that PT LMI has had 

procedure and work instruction 

to make sure implementation of 

Supply Chain System with Mass 

Balance Model. 

17 November 2012 

Inclusion stamp RSPO Certified 

Material 

uncertified are clearly stated in the 

SPO – 4006a.4 Page 39 


Closing 

Date 

Closed 3 

November 

2012 

Closed 20 

November 

2012 

Closed 20 

November 

2012



CAR 

No 

2012. 

41 

2012. 

42 

2012. 

43 


SCCS 

3.3.b 

dan c 

SCCS 

3.4 

SCCS 

4.1.c 

Company received material as FFB 

certifed or uncertified, but in each the 

shipping document (DO, Weight card, 

etc) not differentiated between 

certified and uncertified FFB. 

Material Accounting System 

The company has been appropriation 

Mass Balance Model, but not already 

yet doing material accounting related 

to COP or PKO volume that selled. 

Inclusion Supply Chain Model 

The company can not show the 

Supply Chain Model that used at the 

purchase and sale contract. 

Sales and goods out 

The company can not show the 

Supply Chain Model that used at the 

sale document (Invoice, CPO 

shipping document, etc) 

Time 

Limits 

Mill NC 1 


Mill NC 1 


Mill NC 1 



different shipping document. 

The company need to perform 

material accounting system in 

accordance with RSPO 

reccomended. 

The company shall be ensure the 

Supply Chain Model that used are 

listed in each the purchase and 

sale contract document. 


the Supply Chain System with 

Mass Balance Model was used at 

sale and shipping document. 

has been done at Rantau Estate 

weight card (Ticket No. 118075) 

and RSPO non certified at KKPA 

Sungai Cengal weight card 

(Ticket No. 120201) 


The company has been 

performed accounting the 

certified and uncertified material 

in the production daily report 

(CPO/KPO proccesing). 


In Declaration-6 (1 st July 2012) 

stated that “To Complie the 

Supply Chain Certification, PT 

LMI stated the CPO and PK 

production use the Suppy Chain 

System with Mass Balance 

Model. Name and model of the 

product listed at shipping 

document and other document 

that related with the product. 

PT LMI has not send 

CPO/kernel with RSPO certifed 

until November 2012. 


In Declaration-6 (1 st July 2012) 

stated that “To Complie the 

Supply Chain Certification, PT 

LMI stated the CPO and PK 

Closing 

Date 

Closed 20 

November 

2012 

Closed 20 

November 

2012 

Closed 20 

November 

2012 

SPO – 4006a.4 Page 40 




CAR 

No 

2012. 

44 

2012. 

45 


SCCS 

5.1 

SCCS 

6.1 

Training 

The company shall determine and 

provide training for all staff as 

required at SCCS, the company has 

not made SCCS training to all 

relevant staff. 

Claim 

The company has been getting RSPO 

certification since 30 Desember 2011 

and also already has procedure of 

supply chain and Products traceability 

(RSPO/65/SCPP/LMI, document 

code of P&C RSPO Procedure 

VIII.CA.1, 1 st March 2012), but not 

enough evidence that the company 

procedure has refer to RSPO rules for 

Communication and claim. 

Time 

Limits 

Mill NC 1 


Mill NC 1 




the SCCS training is made to 

make sure the product treceability. 

The company should clearly state 

that any claim of RSPO Certified 

product refer to RSPO Rules for 

Communication and Claim. 

production use the Suppy Chain 

System with Mass Balance 

Model. Name and model of the 

product listed at shipping 

document and other document 

that related with the product. 

PT LMI has not send 

CPO/kernel with RSPO certifed 

until November 2012. 


The company has performed 

SCCS training to all relevant 

staff. The training attended 23 

participant (PT LMI and PT 

SAA), located in RSPO 

secretariat at PT LMI with 

training object was matriks 

SCCS. 


In Declaration-7 has been stated 

that “all claim of CPO and PK 

Certified, has complied with 

RSPO Guidelines for 

Communication and Claims. 

Closing 

Date 

Closed 20 

November 

2012 

Closed 20 

November 

2012 

SPO – 4006a.4 Page 41 




3.5.3 Opportunity for Improvement 

No Ref Std Descriptions 

1 Major 

1.1.2 

Company have opportunity to make sure that procedur implementation related with information requests had done with correct and consistent 

2 Minor 4.7.6 Company have opportunity to improve and maintain the safety and health facilities usage. 

3 Major 5.2.2 Company have opportunity to appropriate plan of HCV manage and control to result of recomendation HCV assesment hade been made 

4 Minor 6.1.3 Company have opportunity to carry out result of control an social manage in implementation report of RKL-RPL that deliver to related institution. 

3.5.4 Noteworthy Positive Components 

No Ref Std Descriptions 

1 PT. Laguna Mandiri have RSPO certificate and comitment in implementation of sustainable palm oil 

2 PT. Laguna Mandiri have competent human resource in their field 

3 Facilities and infrastructure was for all employee were improved by LMI management. 

SPO – 4006a.4 Page 42 


3.6 Summary of Arising Issues from Public, Management and Auditor Response 



Public Issues 

(Institution/ NGO/Community) 

Terombong Sari Village 

a. Communication has been going well between PT. LMI and villagers, where 

some assistance has been responded and granted by the company 

b. Positive impact that perceived by the public such as: open recuitment for 

villagers either as an employee or to market agricultural products, and 

opening village access to the outside. 

c. During PT. LMI operates, never happened a conflict / land dispute with the 

villagers. 

d. Villger’s problems such as: electricity and water 

Rantau Jaya Village 

a. Communication has been going well between PT. LMI and villagers, where 

some assistance has been responded and granted by the company. 

b. Positive impact that perceived by the public such as: open recuitment for 

villagers either as an employee or to market agricultural products, and 

opening village access to the outside. 

c. During PT. LMI operates, never happened a conflict / land dispute with the 

villagers. 

d. The company had socialized about the boundry, HCV and information 

request, but the villagers not yet understand about information request 

responses time limit. 

e. Company responses related information request often given orally to 

village clerk. 

Management Responses 

PT LMI will continue to keep good relations with 

the villagers 

PT LMI will continue to keep good relations with 

the villagers 

Auditor Responses 

The harmonization between PT Laguna 

Mandiri (LMI) and villagers need to be 

preserved or enhanced, so the positive 

impact from plantation management can 

be sustainable. 

The harmonization between PT Laguna 

Mandiri (LMI) and villagers need to be 

preserved or enhanced, so the positive 

impact from plantation management can 

be sustainable. 

SPO – 4006a.4 Page 43 




4.0 CERTIFIED ORGANISATION'S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY 

4.1 Formal Sign-off of Assessment Findings 

Hereunder sign by management representative from inspected company to acknowledge a field assessment and agree for all 

content explained in this assessment report, included of non-compliance findings. 

Signed on behalf of: 

Head of PSQM 

Minamas Plantation – Sime Darby 

Mutuagung Lestari 

Lead Auditor 

Mohamad Pirabaharan 

24/November/2012 

Taufik Margani 

24/November/2012 

SPO – 4006a.4 Page 44 




Appendix 1. List of Stakeholder Contacted in the RSPO Certification Process 

No Institution/NGO/Community Address Phone/Email Form of Contact 

1 Badan Lingkungan Hidup Kab. 

Kotabaru. (Environmental Body) 

2 Dinas Kehutanan Kabupaten 

Kotabaru. (Forest Agency) 

3 Dinas Perkebunan Kabupaten 

Kotabaru. (Plantation Agency) 

Jl. P. Kusuma Negara, 

Kotabaru 72116 

Kalimantan Selatan 

Jl. P. Kesuma Negara. 



Jl. P. Kusuma Negara, 



Jl. Veteran KM 02 No. 223 

Kotabaru (72116) 

4 Dinas Tenaga Kerja dan 

Transmigrasi Kabupaten 

Kotabaru. (Labour Agency) Kalimantan Selatan 

5 Kantor Badan Pertanahan Jl. Veteran No. 15. 

Nasional Kab. Kotabaru. Kotabaru 72116, 

(National Land Agency) 

Kalimantan Selatan. 

6 Village of Terombong Sari Desa Terombong Sari, 

Kec. Pamukan Utara 

7 Village of Rantau Jaya Desa Rantau Jaya, Kec. 

Pamukan Utara 

- Letter. 

1448.28/MUTU/X/12. 

- Letter. 

1450.28/MUTU/X/12. 

- Letter. 

1452.28/MUTU/X/12. 

- Letter. 

1451.28/MUTU/X/12. 

- Letter. 

1449.28/MUTU/X/12. 

Date of 

Contact 

11 October 

2012 

11 October 

2012 

11 October 

2012 

11 October 

2012 

11 October 

2012 

- Interview 22 October 

2012 

- Interview 22 October 

2012 

SPO – 4006a.4 Page 45 




Appendix 2. Assessment Program 

DATE 20 – 24 October 2012 

TIME 

ACTUAL 

Saturday, 20/10/2012 

07.30 - 08.00 

08.00 – 12.30 

PROCESSES / CLAUSES TO BE AUDITED 

Opening Meeting 

Observation 

Use of appropriate best practices by growers and millers (4.1; 4.2) 

Responsible consideration of employees and of individuals and communities affected 

by growers and mills (6.5; 6.6) 

AUDITOR 

TM/NM/MM/WR 

Monday, 22/10/2012 

07.30 - 12.00 

14.00 - 17.30 

Tuesday, 23/10/2012 

07.30 - 12.00 

14.00 - 17.30 

Wednesday 24/10/2012 

08.00 - 12.00 

14.00 – 16.00 

Field Observation to Rantau Estate and public consultation to villages 

Document review 

e.g. Commitment to transparency (1.1;1.2) 

Compliance with applicable laws and regulations (2.1;2.2;2.3) 

Commitment to long-term economic and financial viability (3.1) 

Basic Information, Use of appropriate best practices by growers and millers (4.5; 4.6) 

Field Observation to Matalok Estate and Rantau Factory 

Observation 

Use of appropriate best practices by growers and millers (4.3; 4.4) 

Responsible development of new plantings (7.2; 7.4) 

Responsible consideration of employees and of individuals and communities affected 

by growers and mills (6.1; 6.2) 

Basic Information, Use of appropriate best practices by growers and millers (4.7; 4.8) 

Environmental responsibility and conservation of natural resources and biodiversity 

(5.2), Responsible development of new plantings (7.3) 

Environmental responsibility and conservation of natural resources and biodiversity 

(5.5), Responsible development of new plantings (7.7), Commitment to continuous 

improvement in key areas of activity (8.1) 

Finding Clarification 

Closing Meeting at Estate Office 

To Balikpapan 

TM/NM/MM/WR 

TM/NM/MM/WR 

TM/NM/MM/WR 

SPO – 4006a.4 Page 46 




Appendix 3. Glossary 

AMDAL (SEIA) : Analisis Mengenai Dampak Lingkungan (Social and Environmental Impact Assessment) 

APD (PPE) : Alat Pelindungan Diri (Personal Protection Equipment) 

ASEAN : Association of South East Asian Nations 

B3 : Bahan Beracun dan Berbahaya (Hazardous Material Waste) 

BOD : Biological Oxygen Demand 

BTE : Betung Estate 

CPO : Crude Palm Oil 

CBD : Convention on Biodiversity 

HCV : High Conservation Value (Nilai Konservasi Tinggi) 

HGU : Hak Guna Usaha. (Land Use Permit) 

IUP : Izin Usaha Perkebunan. (Plantation Operation Licence) 

IPAL (WWTP) : Instalasi Pengelolaan Air Limbah (Wastewater Treatment Plant) 

JAMSOSTEK : Jaminan Sosial Tenaga Kerja (Social Assurance of Labor) 

Jankos / EFB : Janjangan Kosong / Empty Fruit Bunch 

K3 (OHS) : Keselamatan dan Kesehatan Kerja. (Occupational Health and safety) 

KER : Kernel Extarction Rate 

LC : Land Clearing 

MTE : Matalok Estate 

OER : Oil Extarction Rate 

PHT (IPM) : Pengendalian Hama Terpadu (Integrated Pest Management) 

PK : Palm Kernel 

PKS (POM) : Pabrik Kelapa Sawit / Palm Oil Mill 

POME : Palm Oil Mill Effluent 

PSD : Plantation Services Departement 

PSQM : Plantation Sustainability and Quality Management 

RKL/RPL : Rencana Kelola Lingkungan/ Rencana Pemantauan Lingkungan. 

(Environmental Management Plan/ Environment Monitoring Plan) 

RTE : Rantau Estate 

RTF : Rantau Factory 

SKE : Sekayu Estate 

SOP : Standard Operating Procedure 

S-01 : Surveillance 1 

TBS (FFB) : Tandan Buah Segar (Fresh Fruit Bunch) 

UKL/UPL : Upaya Kelola Lingkungan/ Upaya Pemantauan Lingkungan. 

(Environmental Management Efforts/ Environmental Monitoring Efforts) 

SPO – 4006a.4 Page 47

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