RSPO CERTIFICATION ASSESSMENT PUBLIC SUMMARY REPORT

on 01.07.2010. Evaluation is done regulary every six month by RSPO Officers in each unit which
has to keep track of its (PTTN’s) legal requirements and make sure that they are complied with.
Since PTTN has SM-K3 certification by Ministry of Labor of Republic Indonesia, the RSPO Officer has
to make sure that the responsible personnel – engineers, boiler men, electricians, have the necessary
qualifications, and the equipments – boilers and diesel generators – have the necessary certifications
and the permits are still valid. The evidence of evaluation is recorded in “Form evaluasi kepatuhan
kepada Peraturan, Perundangan dan Persyaratan lainnya (02/ENVD-EK-LH/X/2010)”, the last
evaluation was done on 24.01.2011. All the documents were checked and mostly found to be in legal
compliance. However, compliance for some regulations at regency (Kabupaten) level was
outstanding due to the division of Kabupaten Tapanuli Selatan into Kabupaten Padang Lawas Utara
and Labuhanbaru Selatan. Nevertheless, PTTN has taken the required steps to fulfill the outstanding
regulation compliance as it needs time for the regency government to process them.
Compliance Status : Full.
Criterion 2.2
The right to use the land can be demonstrated and is not legitimately contested by local
communities with demonstrable rights
Currently, there are no claims on PTTN-Langga Payung Mill by anyone based on interview with local
communities and other stakeholders during public consultation. SMART Tbk took over the land from
established company PT. Tapian Nadenggan in 1989, not directly from the local community. The mill /
estate managers have ensured proper registration of their HGU certificates in register. (2.2.1). The
boundaries of PTTN land were easily identified being demarcated by T-0 pillars, their identification
numbers corresponding with points in the maps in HGU (Land Use Title) (2.2.2). There is mechanism
to monitor and maintain the boundary stones periodically as shown in “Data Monitoring dan
Perawatan Patok Batas BPN Report ”, which conducted every 6 month by HCV Officer,
acknowledged by Estate Manager. The maintenance include cleaning and repainting the boundaries
stones, and sometimes repairing the damaged boundaries stones or repositioning using GPS if the
boundaries stones are relocated or missed. There is procedure for resolving any conflict over land
refers to “Pedoman Teknis Persiapan Lahan SMART No. SOP/NP/SMART/XII/MCAR001, Chapter
XII,. Penanganan Keluhan dan Ketidakpuasan” dated on 1 July 2010 and “SOP Penanganan Keluh
Kesah dan Ketidakpuasan No. PT. TN-LPYM/RSPO-SOP/02, (2.2.3).
Compliance Status : Full.
Criterion 2.3
Use of land for oil palm does not diminish the legal rights or customary rights of other users,
without their free, prior and informed consent
As far as could be ascertained, there is no customary right of other users, according to HCV
assessment report there was no indigenous people around the mill and estates.
Compliance Status : Full.
Criterion 3.1
There is an implemented management plan that aims to achieve long term economic and
financial viability
PTTN has long term projection (2010 – 2020) for its crop, including key performance data for its mill
and estates as part of its long term economic planning for all corporate of SMART Tbk Group,
including mill allocation, production of FFB (tonnage) FFB/ ha (yield); OER, by predicting inflation
rate; exchange rate; interest rate; portion cash; dividen; non deductible expenses; working hours;
turnover; % allowance for doubtful accounts, age of asset; price of FFB purchase. During the
projection period the mill capacity is 60 FFB/ hour and no plan to increase the mill capacity.
Compliance Status : Full.
Public Summary Report PT. Tapian Nadenggan‐Langga Payung Mill Page 20