Roundtable on Sustainable Palm Oil - Public Summary Report - TÜV Rheinland
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Roundtable on Sustainable Palm Oil
Public Summary Report
Report no.: 82450216035
Certification assessment against the
RSPO Principles & Criteria 2013 (Generic) and
RSPO Supply Chain Certification Standard 2014
PT Murini Sam-Sam
(Subsidiary of Wilmar International Group)
Bengkalis, Riau, Indonesia
Date of assessment: 3 – 6 November 2015
Report prepared by:
Carol Ng Siew Theng
(RSPO Lead Auditor)
Certification decision by:
Abdul Qohar
(Director of PT TUV Rheinland Indonesia)
Certification Body:
PT TUV Rheinland Indonesia
Menara Karya, 10th Floor
Jl. H.R. Rasuna Said Block X-5 Kav.1-2
Jakarta 12950,Indonesia
Tel: +62 21 57944579
Fax: +62 21 57944575
www.tuv.com/id
TABLE OF CONTENTS 1.0 SCOPE OF CERTIFICATION ASSESSMENT 3 1.1 National Interpretation Used 3 1.2 Type and Scope of Assessment 3 1.3 Location and Maps 3 1.4 Description of Supply Base 4 1.5 Dates of Plantings and Replanting Cycles 7 1.6 Other Achievements and Certifications Held 7 1.7 Area of Plantation (Total, Planted and Mature) 8 1.8 Organisational Information / Contact Person 8 1.9 Description of Company History, Socioeconomy & Environment 8 1.10 Time Bound Plan for Other Management Units 10 1.11 Compliance to Rules for Partial Certification 11 1.12 Plan for certification of associated smallholders 13 1.13 Approximate Tonnages Certified 13 1.14 Recommendation for Certification 13 1.15 Date of Certificate Issued and Scope of Certificate 13 2.0 ASSESSMENT PROCESS 14 2.1 Certification Body 14 2.2 Qualifications of Lead Assessor and Assessment Team 14 2.3 Assessment Methodology 15 2.4 Stakeholder Consultation and Stakeholders Contacted 16 2.5 Date of Next Surveillance Visit 17 3.0 ASSESSMENT FINDINGS 17 3.1 Summary of Findings 17 3.2 Identified Non-conformances, Corrective Actions Taken and Auditors Conclusions 50 3.3 Noteworthy Positive Components 51 3.4 Issues Raised by Stakeholders and Findings Pertaining to Issues 51 3.5 Acknowledgements of Internal Responsibility and Formal Sign-Off by Client 56 APPENDICES 57 Appendix 1: Details of Certificate 57 Appendix 2: Certification Audit Plan 59 Appendix 3: List of Abbreviations 63 Appendix 4: List of Stakeholders Interviewed and Contacted 64 Appendix 5: Observations and Opportunities for Improvement 65
RSPO Certification Assessment Report
PT Murini Sam-Sam (Wilmar International Group)
Bengkalis, Riau, Indonesia
Page 3 of 66
1.0 SCOPE OF CERTIFICATION ASSESSMENT
1.1 National Interpretation Used
The operations of the palm oil mill(s) and its supply base of FFB were assessed against generic RSPO Princi-
ples & Criteria (P&C) year 2013 and the RSPO Supply Chain Certification Standard (SCCS) year 2014. The
company has opted to be certified against SCCS requirements Module E for CPO Mills: Mass Balance.
1.2 Type and Scope of Assessment
The main certification assessment was carried out on 1 mill and 1 estate under PT Murini Sam-Sam (PT MSS),
which is a subsidiary of Wilmar International Group.
Although the Estate Business Permit (‘Izin Usaha PerEstatean’ or IUP) of the estate dated 14 August 2004 has
been approved for 1233.13 ha, the company has yet to receive the approved HGU for 466 ha of area planted in
year 1991 due to ongoing planning process of Provincial Spatial Plan (Rencana Tata Ruang Wilayah Propinsi –
RTRWP) area by the local authorities. Hence, this 466 ha (henceforth referred to as the ‘non-HGU’ area) will
not be included in the scope of certification until the HGU of this area has been approved and the company has
applied for the new IUP and new Environmental Management/Monitoring Efforts documents (‘Usaha Pengel-
olaan Lingkungan/ Usaha Pemantauan Lingkungan’ or UPL/UKL) for this area. The current estate area includ-
ed in the certification scope is 967 ha. Further details are as described under Section 1.9 of this report.
1.3 Location and Maps
Table 1: GPS locations for all estates and mills included in certification assessment
Name GPS locations
of mill / Location Latitude Longitude
estate
PT Murini Sam Pangkalan Libut Village, Pinggir Sub-district, Bengka- 1°3'37.27" 101°14' 21.92"
Sam Palm Oil lis District, Riau Province, Indonesia.
Mill
PT Murini Sam Jl. Lintas Pekanbaru-Duri, KM 92.8, Pangkalan Libut 1°3' 48.34" 101°14' 41.08"
Sam Estate Village, Pinggir Sub-district, Bengkalis District,Riau
Province, Indonesia.
QMF: RSPO-007a-13(Rev.0)
RSPO Certification Assessment Report
PT Murini Sam-Sam (Wilmar International Group)
Bengkalis, Riau, Indonesia
Page 4 of 66
Location of PT.
MSS
Figure 1: Location of PT Murini Sam Sam in Indonesia
QMF: RSPO-007a-13(Rev.0)
RSPO Certification Assessment Report
PT Murini Sam-Sam (Wilmar International Group)
Bengkalis, Riau, Indonesia
Page 5 of 66
HGU area
Estate coordinates
Non-HGU
area
Figure 2: GIS map of PT Murini Sam Sam Estate (Scale: 1:75,000) with close-up of estate boundary.
Yellow region is the HGU area (certified) and green region is the non-HGU area (not yet certified)
QMF: RSPO-007a-13(Rev.0)
RSPO Certification Assessment Report
PT Murini Sam-Sam (Wilmar International Group)
Bengkalis, Riau, Indonesia
Page 6 of 66
1.4 Description of Supply Base
Table 2: FFB Supply Information for PT Murini Sam- Sam in year 2014 and in year 2015
FFB supplied in year
FFB supplied in year 2014
FFB Contributors 2015
Tonnes % Tonnes %
Company owned estates:
PT Murini Sam Sam estate (HGU
22,225 8.01 25,983 7.03
area)
PT MSS Estate Non-HGU area 10,908 3.93 12,594 3.40
Subtotal (estate) 33,133 11.94 38,577 10.43
Independant outgrowers 244,441.35 88.06 331,294 89.57
TOTAL 277,574.345 100 369,871 100
Table 3: Certified tonnages claimed, certified tonnages purchased or sold, total and projected CPO and
PK production from PT Murini Sam-Sam Palm Oil Mill
Amount (MT)
FFB CPO PK
Certified tonnages claimed - 6,435 1,778
Certified tonnages sold - 0 0
Certified tonnages purchased - 0 0
Total Actual Production for year 2015 369,871 68,980 19,011
Actual Certified Production for year 2015* 25,983 4,846 1,336
Conversion Rate for year 2015 - OER: 18.65% KER: 5.14%
Projected output for year 2016 382,325 72,451 20,072
Projected Certified Production for year
26,877 5,093 1,411
2016**
Projected conversion rate for year 2015** - OER: 18.95% KER: 5.25%
* From company-owned estate with approved HGU only
** Calculated based on assumption that 7.03% of crop received is from the certified area of the estate, as per
the FFB supply history in year 2015 in Table 3.
QMF: RSPO-007a-13(Rev.0)RSPO Certification Assessment Report
PT Murini Sam-Sam (Wilmar International Group)
Bengkalis, Riau, Indonesia
Page 7 of 66
1.5 Dates of Plantings and Replanting Cycles
The company follows a replanting cycle of 25 years, however the actual replanting cycle may be increased de-
pending on the actual productivity of the crop. Information on the dates of plantings are as per the table below.
Table 4: Age and year of plantings of company estate supplying to PT Murini Sam-Sam
Oil palm planted area at PT
Age & Year of Plantings
Murini Sam (ha)
1993 (22 years old) 177.2
1995 (20 years old) 628.33
1996 (19 years old) 44.78
TOTAL 850.31
*Note: The company had also planted 438.79 ha of oil palm within the non-HGU area. Since the company has not obtained the
Land Use Rights certificate (HGU) for this area yet, this is removed from the table until it is confirmed to be included in the certifica-
tion scope.
Table 5: Planned and actual oil palm replanting activities for PT Murini Sam-Sam
There has been no replanting carried out since the establishment of the estate in year 1999. The company
plans to carry out their first round of replanting in year 2018 for total of 330.22 ha for year 1993 planted area.
Total planned replanting Actual total area
Year
area for PT MSS estate replanted (ha)
2016 - -
2017 - -
2018 330.22* -
2019 - -
2010 - -
*Note: This does not include planned replanting area for the non-HGU area, in which 250.08 ha of year 1991 plantings is also
planned for replanting, hence total planned replanting area including non-HGU area is 529.53ha.
1.6 Other Achievements and Certifications Held
Table 6: Details of other certifications or awards held by PT Murini Sam-Sam
Name of mill / Certification Body Date
Certification Standard / Award achieved
estate / Awarder Achieved
PT Murini Zero Accident Award for achieving 1,415,744 Manpower Depart- 31 August 2015
Sam-Sam Es- working hours without any accidents, calculated ment of the Republic
tate since 1 January 2012 until 31 December 2014 of Indonesia
PT Murini Performance Rating Program in Environmental Ministry of Environ- For period of
Sam-Sam Management (PROPER) Level: Blue ment and Forestry 2013-2014
Palm Oil Mill
PT Murini CSR Best Practice for MDG’s in Conjunction Coordinating Minis- 15 September
Sam-Sam with Indonesia Development Goals ter for People's Wel- 2011
Palm Oil Mill Category: Silver for increasing the age of chil- fare, Republic of In-
dren participating in year 9 education through donesia
the ‘Wilmar Education Partnership Program’
QMF: RSPO-007a-13(Rev.0)RSPO Certification Assessment Report
PT Murini Sam-Sam (Wilmar International Group)
Bengkalis, Riau, Indonesia
Page 8 of 66
1.7 Area of Plantation (Total, Planted and Mature)
Table 7: Oil Palm Planted Area Summary, FFB Production and Average yield/ha for PT Murini Sam Sam
in year 2014
Oil Palm Mature Immature FFB
Total area Average
Estate Name Planted area (Production) (Non-production) Production*
(ha) yield/ ha
(ha) area (ha) area (ha) (tonnes)
PT Murini
967.00 850.31 850.31 - 22,227 26.14
Sam-Sam
Table 8: Land use data for PT Murini Sam-Sam
HCV/ Land used for other purposes (ha)
Total Oil Palm
Estate Name area Planted Potential
Non-plantable Palm Oil Road, Housing &
(ha) Area (ha) HCV areas*
area Mill Drainage
(ha)
PT Murini Sam-
967.00 850.31 52.92 8.95 19.12 35.70
Sam (HGU area)
Not included in current certification scope (for reference only):
Non-HGU area 466.00 438.79 0.86 1.30 - 25.05
Total 1,433.00 1,289.10 53.78 10.25 19.12 60.75
1.8 Organisational Information / Contact Person
Contacts details of the company are as follows:
Company Name: PT Murini Sam Sam (subsidiary of Wilmar International Group)
RSPO Membership no. 2-0017-05-000-00
Address: Site: Jl. Lintas Pekanbaru-Duri, KM 92.8, Pangkalan Libut Village, Pinggir Sub-
district, Bengkalis District,Riau Province, Indonesia.
Office: Jl. Soekarno–Hatta, Komplek Sentral Komersial Arengka (SKA)
Blok F79–F80, Pekanbaru – Riau 28294, Indonesia
Contact Person: Mr. Priadi
Telephone: +62 813 74813864
Email: priadi@wilmar.co.id
1.9 Description of Company History, Socio-economy & Environment
As stated under Section 1.2 of this report, the company has an Estate Business Permit (‘Izin Usaha PerEstate-
an’ or IUP) of the estate dated 14 August 2004 has been approved for 1233.13 ha. However, the company has
yet to receive the approved HGU for 466 ha of area planted in year 1991 due to ongoing planning process of
RTRWP area by the local authorities. Some of this land area of 466 ha was also not included in the original IUP
area of 1233.13 ha. The entire 466ha of land was previously planted with oil palm by local communities, and
upon establishment of the plantation in year 1991, the company took over the land, paid compensation to the
affected local community members owning plots of land within this 466ha of land and from then on these areas
were under the company’s management. The approval process for this 466ha, and once approved, the compa-
ny will apply to conduct a new IUP and new Environmental Management/Monitoring Efforts documents (‘Usaha
Pengelolaan Lingkungan/ Usaha Pemantauan Lingkungan’ or UPL/UKL) for this area, hence the total land area
will be revised and increased from the previous area of 1233.13 ha approved in the existing IUP. This 466 ha
will not be included in the scope of certification until the HGU of this area has been approved and the company
has obtained a new IUP and prepared a new UPL/UKL set of documents for the estate. The current estate area
included in the certification scope is 967 ha.
QMF: RSPO-007a-13(Rev.0)RSPO Certification Assessment Report
PT Murini Sam-Sam (Wilmar International Group)
Bengkalis, Riau, Indonesia
Page 9 of 66
Table 9: General Information on PT Murini Sam-Sam estate
Reference
No. Description Estate
Source
1 Surrounding stakeholders (at estate boundaries)
North - High
East Pangkalan Libut Village Conservation
South - Value Report –
West Sungai Meranti Village Re.Mark Asia
2014
2. Total Area (ha) 1233.13 ha (including 466ha of non-HGU area)
3. Hydrology Main river bordering with estate: Mandau River
River tribunary located within the estate: Meranti River
Estate experiences periodic flooding areas
4. Geology Sandstones, shales and sub-recent riverine alluvium. Soils of PT MSS
Northern parts more dissected compared to the rest Estate – Param
5. Soil type 10 soil mapping units identified and grouped into 4 soil man- Agricultural Soil
agement groups as follows: Surveys (M) Sdn.
Bhd. (May 2008)
Soil Man- Extent
Soil Map Main Characteristic/ Limita-
agement
Units* tion Ha %
Group
A Bgr/2 Deep fine sandy clay tex- 49.1 4.0
Bgr/3 tured soils. Soil erosion on
Bgr/4 steper slopes. Low fertility.
B Sdg/2 Deep well-drained soils. 1,036.4 84.4%
Rsu/2 Texture loamy. Moisture
Nka/1 stress and yield fluctua-
tions.
Soil erosion on steeper
slopes. Low fertility
C Btu/1 Poor drainage and flooding 110.5 9.0%
Lus/1
D Erg/sh/1 Moderately deep tp shallow 7.4 0.6%
Erg/m/1 organic soils. Subsidence
on drainage. Leaning
palms. Termite activity.
*Note:
Bgr = Bungor soil series Btu = Bukit Tuku soil series
Sdg = Serdang soil series Lus = Lunas soil series
Rsu = Rasau soil series Erg = Erong soil series
Nka = Nangka soil series
6. Climate Tropical with annual rainfall of 1,780 – 2,417mm per annum
7. Topography Level to hilly terrain; Slope: 0-35%+ or 0-20°+
8. Elevation 10 – 50m (150 feet)
QMF: RSPO-007a-13(Rev.0)RSPO Certification Assessment Report
PT Murini Sam-Sam (Wilmar International Group)
Bengkalis, Riau, Indonesia
Page 10 of 66
1.10 Time Bound Plan for Other Management Units
The time frame laid out below is considered to be both challenging and realistic. The audit team is satisfied that
the company conforms with the RSPO requirements for partial certification as laid out in Clause 4.2.4 of the
RSPO Certification Systems document.
Table 10: Time Bound Plan of the Other Management Units under Wilmar International Group
Time bound
Name of Holding Location plan Status
for certification
Indonesia
PT Milano (Pinang Awan) North Sumatra 2009 Certified
PT Mustika Sembuluh I Central Kalimantan 2009 Certified
PT Kencana Sawit Indonesia West Sumatra. 2010 Certified
PT Kerry Sawit Indonesia I Central Kalimantan 2010 Certified
PT Tania Selatan South Sumatra 2010 Certified
PT AMP Plantation West Sumatra 2011 Certified
PT Agro Nusa Investama (Sambas) West Kalimantan 2012 Certified
PT Buluh Cawang Plantations 1 South Sumatra 2012 Certified
PT Bumi Sawit Kencana Central Kalimantan 2012 Certified
PT Gersindo Minang Plantations West Sumatra 2012 Certified
PT Sarana Titian Permata Central Kalimantan 2012 Certified
PT Daya Labuhan Indah-2 North Sumatra 2013 Certified
PT Mustika Sembuluh 2 Central Kalimantan 2014 Certified
PT Mentaya Sawit Mas Central Kalimantan 2014 Certified
PT Kerry Sawit Indonesia 2 Central Kalimantan 2014 Certified
PT Agro Palindo Sakti 1 South Sumatra 2014 Certified
PT Rimba Harapan Sakti Central Kalimantan 2016 Certified
PT Buluh Cawang Plantation West Kalimantan 2015 Certified
PT Sinarsiak Dianpermai Riau 2014 Gap Assesment
on 19/09/2014
PT Musi Banyuasin Indah South Sumatra 2014 Full Assessment
on 28/11/2014
PT Karunia Kencana Permaisejati Central Kalimantan 2016 Full Assessment
on 09/04/2015
PT Murini Sam Sam Riau 2014 Full Assessment
on 02/11/2015
PT. Bumi Pratama Khatulistiwa West Kalimantan 2016 Planned
PT. Agro Nusa Investama (Landak) West Kalimantan 2016 Planned
PT. Agro Palindo Sakti 2 West Kalimantan 2016 Planned
PT. Agrindo Indah Persada 2 Bangko - Jambi 2016 Planned
PT. Putra Indotropical West Kalimantan 2016 Planned
PT. Pratama Prosentindo West Kalimantan 2016 Planned
PT. Indoresin Putra Mandiri West Kalimantan 2016 Planned
PT. Asiatic Persada Jambi 2013 Not classified, com-
pany sold
PT. Citra Riau Sarana 1 Riau 2014 Not classified, shares
are being divested
PT Citra Riau Sarana (ML) 3 Riau 2014 Not classified, shares
are being divested
QMF: RSPO-007a-13(Rev.0)RSPO Certification Assessment Report
PT Murini Sam-Sam (Wilmar International Group)
Bengkalis, Riau, Indonesia
Page 11 of 66
PT Citra Riau Sarana 2 Riau 2014 Not classified, shares
are being divested
Malaysia
Sapi Palm Oil Mill Labuk, Sandakan 2015 Certified
Sabah
Reka Halus Palm Oil Mill Labuk, Sandakan 2015 Certified
Sabah
Sabahmas Palm Oil Mill Lahad Datu, Sabah 2015 Certified
Saremas 1 Palm Oil Mill Miri, Sarawak 2015 Certified
Saremas 2 Palm Oil Mill Miri, Sarawak 2015 Certified
Terusan Palm Oil Mill Labuk, Sandakan 2015 Certified
Sabah
Ribubonus Palm Oil Mill Telupid, Sandakan, 2015 Certified
Sabah
Sri Kamusan Palm Oil Mill Sugut, Sandakan 2015
Sabah Certified
Table 11: New Development Area under Wilmar International
NPP Status according to
Name of Holding Location Total area
RSPO NPP procedure
PT Agro Indah Persada Merangin. Jambi 1,200 ha Approved
Sambas, West Ka-
PT Agro Nusa Investama Sambas 1,024 ha Approved
limantan
Biase Plantations (Ibiae Estate) Calabar, Nigeria 5594 ha Approved
Not submitted (Pending
Biase Plantations (Calaro Extension) Calabar, Nigeria 3066 ha
HCV/HCS study
Not submitted (Pending
Eiyup Industry (Oban Estate) Calabar, Nigeria 2986 ha
HCV/HCS study
Biase Plantations (Biase estate) Calabar, Nigeria 8029 ha Overlapping boundaries
1.11 Compliance to Rules for Partial Certification
Compliance of the uncertified management units of Wilmar Plantation Limited against the rules for partial certifi-
cation according to RSPO Certification System clause 4.2.4 was assessed through document check for all com-
pany’s self assessment report for uncertified unit. A summary of findings is as stated below.
Partial Certification Re- Audit Findings
quirements
(a) The parent organization or one of its Wilmar International Indonesia is RSPO member with member-
majority owned and / or managed subsid- ship number 2-0017-05-000-00.
iaries is a member of RSPO.
(b-d) A challenging time-bound plan for Refer to the time bound plan under Section 1.10 above
certifying all its relevant entities is submit-
ted to the Certification Body (CB) during
the first certification audit. The time-
bound plan should contain a list of sub-
sidiaries, estates and mills.
Any revision to the time-bound plan or to
the circumstances of the company shall
cause the plan to be reviewed. for
whether it is still appropriate, such that
changes to the time-bound plan are per-
QMF: RSPO-007a-13(Rev.0)RSPO Certification Assessment Report
PT Murini Sam-Sam (Wilmar International Group)
Bengkalis, Riau, Indonesia
Page 12 of 66
Partial Certification Re- Audit Findings
quirements
mitted only where the organisation can
demonstrate that they are justified
(e) No replacement of primary forest or There are some newly developed plantation areas under Wilmar
any area identified as containing High International such as in Jambi province, West Kalimantan prov-
Conservation Values (HCVs) or required ince Indonesia and Nigeria as explained on the table 11 above.
to maintain or enhance HCVs in accord- Some areas have undergone the New Planting Procedure (NPP)
ance with RSPO criterion 7.3. Any new and been approved while some areas are still undergoing the
plantings since January 1st 2010 must NPP, as shown in Table 11 above.
comply with the RSPO New Plantings
Procedure
(f) Land conflicts, if any, are being re- Wilmar International carried out the New Planting Procedure for
solved through a mutually agreed pro- BIASE Plantation Limited (Ibiae estate) in Nigeria with an an-
cess, e.g. RSPO Grievance procedure or nouncement made on the RSPO website on 9 November 2012.
Dispute Settlement Facility, in accord- During this NPP process, a complaint was submitted by the
ance with RSPO criteria 6.4, 7.5 and 7.6. Rainforest Resource & Development Centre (RRDC) on behalf
of the Ibiae Land Lord Community. The complaint covered in-
fringements to several aspects of Principle 1 and Principle 2 of
the RSPO P&C. The case was taken up and investigated by the
RSPO Complaints Panel, with decision made for RSPO to a law-
yer well acquainted with Nigerian laws to review and give an au-
thoritative opinion on whether the company had complied with
the legal requirements of Nigeria. The legal opinion was received
by the RSPO on 27 August 2014, and based on this opinion, the
RSPO confirmed that BIASE Plantations was in compliance with
legal requirements and closed the case. However, the result was
not accepted by RRDC as well as the NGO, Friends of the Earth
and the issue remains ongoing with no resolution. As the com-
pany has complied with requirements to attempt to resolve the
dispute through the RSPO grievance procedure, this is noted by
the TUV Rheinland audit team as an observation and progress of
the case will be monitored.
Further details on this case is available here:
http://www.rspo.org/members/complaints/status-of-
complaints/view/26
There is also on ongoing land dispute at PT Gersindo Minang
Plantation (GMP), West Sumatra under Wilmar, which has been
ongoing since year 1997 with the village of Jaorang Rantau. This
company has been RSPO certified by another certification body
who is monitoring the status of the dispute with the RSPO.
(g) Labour disputes, if any, are being re- A previously ongoing labour conflict in PT Tania Selatan regard-
solved through a mutually agreed pro- ing employee bonus has been resolved There are no other iden-
cess, in accordance with RSPO criterion tified labour disputes ongoing at other subsidiary companies of
6.3. Wilmar.
(h) Legal non-compliance, if any, are be- Some of Wilmar’s other management units have not complied
ing resolved in accordance with the legal with certain legal requirements, for example in PT Sarana Titian
requirements, with reference to RSPO Permai, PT Kerry Sawit Indonesia, PT Mustika Sembuluh estate
criteria 2.1 and 2.2. under another Wilmar International management unit, there is an
issue with the land area stated in the land use right certificate
(HGU). However, the company is taking action by inviting the
National Land Agency (BPN) to remeasure the land and resolve
the issue. The process is still ongoing.
In addition, there were non-compliances raised in June 2015 by
the Environmental Department of Agam against PT AMP Planta-
QMF: RSPO-007a-13(Rev.0)RSPO Certification Assessment Report
PT Murini Sam-Sam (Wilmar International Group)
Bengkalis, Riau, Indonesia
Page 13 of 66
Partial Certification Re- Audit Findings
quirements
tion, another subsidiary of Wilmar. The non-compliances raised
were that:
- The company continued to carry out land application after
their license for land application had expired on 14 March
2014
- The company was carrying out POME treatment using an ad-
sorption system which had not been studied or approved as
per the company’s environmental management document
- There was no follow up by the company’s management on
the results of the evaluation by the Agam district on PT AMP
mill’s wastewater treatment facility in 2013
- Sample analysis results of wastewater discharged from the
mill was found to have exceeded the legal limits for BOD and
COD.
At time of this audit, the company was still making efforts to
close these legal non-compliances.
1.12 Plan for certification of associated smallholders
The mill only received crop from PT Murini Sam Sam estates and from independent third party sources, and
has not associated smallholders. Therefore the company does not have any plan for certification of associated
smallholders.
1.13 Approximate Tonnages Certified
The approximate tonnages certified, based on projected certified production for year 2016 as described under
Table 3, is as follows:
Crude Palm Oil (CPO) : 5,093 MT
Palm Kernel (PK) : 1,411 MT
1.14 Approval for Certification
PT Murini Sam Sam has established and maintains an effective system to ensure compliance with the RSPO
principles and criteria. The audit team has confirmed through the audit process that the company’s practices
complies with, adequately maintains and implements the requirements of RSPO Principles and Criteria 2013
(generic) and the RSPO Supply Chain Certification System Standard 2014.
The audit team leader recommends to the PT TUV Rheinland accredited office for the certification of PT Murini
Sam-Sam as a producer of RSPO Certified Sustainable Palm Oil.
1.15 Date of Certificate Issued and Scope of Certificate
The scope of the certificate covers production of palm oil from PT Murini Sam-Sam Palm Oil Mill and its supply
base, which includes PT Murini Sam-Sam Estate. The date of certificate issued is June 08, 2016. Further de-
tails of the certificate are as per Appendix 1.
QMF: RSPO-007a-13(Rev.0)RSPO Certification Assessment Report
PT Murini Sam-Sam (Wilmar International Group)
Bengkalis, Riau, Indonesia
Page 14 of 66
2.0 ASSESSMENT PROCESS
2.1 Certification Body
PT TUV Rheinland Indonesia is member of Group TÜV Rheinland Group, a global leader in independent test-
ing and assessment services. The TÜV Rheinland Group was established in 1872 with offices located in over
500 locations in 65 countries on all five continents. PT TUV Rheinland Indonesia offers certification for a wide
range of management systems according to established international standards including ISO 9001, ISO 14001,
OHSAS 18001, and SA 8000. PT TUV Rheinland Indonesia’s office is located in Jakarta, Indonesia.
2.2 Qualifications of Lead Assessor and Assessment Team
Posi-
Name Qualifications / Experience
tion
Education: B.Sc. Biotechnology & B.Sc. Environmental Management - Monash
University.
Trainings attended: RSPO Lead Auditor Course – Wildasia; RSPO Supply Chain
Certification Systems training course – David Ogg & Partners; RSPO Malaysian
National Interpretation Requirements and Certification – SIRIM; Implementation of
RSPO Principles & Criteria - QA Plus; RSPO Stepwise Support Programme - Pro-
forest/WildAsia; OHSAS18001:2007 Auditor/Lead Auditor Training – Neville Clarke;
ISO14001 Auditor/ Lead Auditor Training – Neville Clarke; SA8000 5 Day Basic
Auditor Course – Global Group; Elaborating on the RSPO P&C Social and Labour
Lead Standards and the Mechanics of Social Auditing Workshop – Verité; Certification
Carol Ng
Auditor Body Biodiversity Forum & Workshop – RSPO; 2nd Biodiversity Seminar – RSPO;
Environmental Quality Act 1974 – Department of Environment.
Working experience: RSPO Lead Auditor (since March 2015), CDM Auditor (since
year 2012), Assistant Manager (since year 2012) and Project Engineer (since year
2009) for TUV Rheinland Malaysia; currently responsible for conducting and coordi-
nating RSPO certification projects; previous experience in implementing sustainable
practices in Sime Darby plantations to comply with RSPO requirements, performing
RSPO internal audits and implementing sustainability projects. Prepared training ma-
terials and conducted several RSPO requirements trainings and workshops to planta-
tion management teams (2008).
Education: Diploma Applied Analitycal Chemistry. North Sumatra University, Medan
and Bachelor of Chemical Engineering, University of Jaya Baya, Jakarta.
Trainings attended: ISO 9000:2000 Series Auditor / Lead Auditor Training - PE In-
ternational (Jakarta), IEMA Advanced EMS Auditor (IEMA / EARA ISO 14001) Audi-
tor / Lead Auditor Training Course - PE International (Jakarta), OHSAS 18001 Lead
Auditor Training Course - PE International (Jakarta). ISPO lead auditor training. Na-
Auditor tional Examination Board of Occupational Safety and Health (International General
(OSH, Certification (IGC) 1,2 and 3 TUV Nord (Dubai). National Examination Board of Oc-
Suriadi Ali Envi- cupational Safety and Health (International Technical Certification (ITC) for Oil and
ron- Gas Industries. RRC (Dubai). Indonesian Engineer Association (PII) (Jakarta), Oc-
ment) cupational Health and Safety Specialist for lifting equipments. Indonesia Man Power
and Transmigration Department (Jakarta).
Working experience: Experienced in Quality Control from 1992-2004. Coordinator
for Safety Quality and EnvironmentManagement System since 2002 – present. Audi-
tor for Environmental Management System since 2002 – present. Auditor for OHSAS
18001 since 2012 - present. Conducted over 10 Quality Management System audits
Environmental Management System audits and OHSAS
Naik Mo- Auditor Education: Bachelor of Forestry, Gadjah Mada University.Trainings attended: In-
nang (Best donesian Sustainable Palm Oil (ISPO) Auditor, Quality Management System (QMS)
Parlin- practic- Auditor/Lead Auditor (ISO 9001:2008) by IRCA, Environmental Management Sys-
dungan es) tems Auditor/Lead Auditor Conversion Training by IRCA (ISO 14001-2004), and
QMF: RSPO-007a-13(Rev.0)RSPO Certification Assessment Report
PT Murini Sam-Sam (Wilmar International Group)
Bengkalis, Riau, Indonesia
Page 15 of 66
Lingga HCVA Training
Work experience: Field Assistant PT Sapta Karya Damai (2008-2013), auditor in
PT Sucofindo (2013-2015), and Auditor in PT TUV Rheinland Indonesia (2015-
present)
Education: Bachelor of Agriculture, Departement of Social and Economic of
Agriculture, Sriwijaya University, Palembang.
Trainings attended: RSPO Lead Auditor Training, Pekanbaru (August 2014).
Indonesian Sustainable Palm Oil (ISPO) Lead Auditor Training (May 2002); ISO
Dewi Ak- Auditor 9001:2008 IRCA Lead Auditor, ISO 14000:2004, OHSAS 18001:2007 trainings -.
bari (social) OHSAS/SMK3 Lead Auditor based on PP No.50 /2012.
Working experience: Exprience in consulting, training and auditing Quality,
Environmental, OHSAS of PT Surveyor Indonesia Pekanbaru ( 2000 – 2010), Lead
Auditor : QMS 9001:2008, Auditor Indonesian Sustainable Palm Oil (ISPO) and
Roundtable Sustainable Palm Oil (RSPO) for TUV Rheinland since 2013
2.3 Assessment Methodology
The certification assessment was conducted from 3 to 6 November 2015 as per the assessment program be-
low. The assessment was carried out in accordance with PT TUV Rheinland Indonesia’s RSPO audit procedure
as well as the RSPO Certification Systems document. During assessment, the qualified TUV Rheinland asses-
sors used the RSPO standard as endorsed for the country in which the assessment took place and recorded
their findings.
Due to the location and proximity of the estate to the mill, combined with common management systems, it was
possible to carry out both field and document assessments of the estate and mill within the time frame without
compromising the integrity of the assessment in anyway.
The one mill and one estate were visited and the assessment team carried out field and document assess-
ments of compliance to all the RSPO principles and criteria. Common systems were identified and specific evi-
dence was recorded for individual estates. Interviews were conducted at the estate and the mill.
The company proposed the correction and corrective action for all identified non conformities raised to the cer-
tification body 30 days after the closing meeting. Verification of closure of major non-conformances was con-
ducted 2 months after the closing meeting of the main assessment and implementation of corrective actions for
minor non-conformities will be verified during the next surveillance audit. The certification assessment agenda
is as explained below.
Main Assessment Agenda
Location/ Main
Date Main activities
sites
3/11/2015 PT MSS Palm Oil Stakeholder Consultation Meeting
Mill - Introduction to team members
- Presentation on RSPO
- Open discussion with stakeholders
Opening Meeting
- Introduction to team members
- Briefing and finalization of audit plan
- Briefing on RSPO audit process
- Presentation on estate activities and production data
- Presentation on mill activities and production data
PT MSS Estate Document review: Estate production data, area statements, replanting pro-
gramme, review of documents and evidence of compliance to RSPO P&C,
evidence of compliance with legal requirements, requests for information,
publicly available documents, land conflicts related documents, provision of
information, land ownership documents, Social Impact Assessment (SIA),
social management, labour related documents, Legal Requirements (OSH &
Environment), OSH, Training, SOP’s of Legal requirements register &
implementation, Field operations (spraying, harvesting, manuring), fertiliz-
QMF: RSPO-007a-13(Rev.0)RSPO Certification Assessment Report
PT Murini Sam-Sam (Wilmar International Group)
Bengkalis, Riau, Indonesia
Page 16 of 66
er application records, chemical application records, chemical stock invento-
ry , HIRARC,OSH Committee & safety records, Accident records,Training &
PPE issuance, Waste storage also Hazardous waste inventories & manifest
Site visit: Murini Samsam Estate Chemical stores,Workshops,
Interviews: Head of Murini Samsam Estate, agronomist personal and Man-
ager estate, Spraying, Harvesting and Manuring workers, KTU (Head of ad-
ministration) , Head of Gender Committee
4/11/2015 PT MSS Estate Site visit: EFB application area, turnera subulata planted area, barn owl
boxes, Sei Meranti village, Division offices and field visits, Stake HGU No. 7
on Block 10, Stake HGU No. 8 on Block 10, Stake HGU No. 22 on Block
17, shrub swamp, Meranti River, harvesting and chemist spraying on block
11 (B9) and Block 5 (B4).
Document review: Legal requirements register, SOPs for estate, IPM pro-
grammes, monitoring records and training records, greenhouse gas identifi-
cation and management plan, Palm GHG Summary of greenhouse has cal-
culations, internal audit reports, Research & Development visit reports,
chemical list, chemical usage records, Code of conduct, Legal Require-
ments (Estate and Mill), practices minimize and control erosion and degra-
dation of soils, High Conservation Value
Interviews; Village heads, community leaders , Sprayers, Manurers, Har-
vestors, Head of Murini Samsam Estate, agronomist personnel and Manag-
er estate, Spraying, Harvesting and Manuring workers.
5/11/2015 PT MSS Palm Oil Document Review: SCCS SOPs, organizational chart, Management re-
Mill spresentative nomination letter, mass balance sheet templates, training rec-
ord, Social Impact Assessment, CSR program records, workers pay slips,
insurance records, Social Impact Assessment, CSR program records, work-
ers pay slips, insurance records, Code of conduct, Legal Requirements (Es-
tate and Mill), efficiency of fossil fuel use and the use of renewable energy
is optimized, OHS, Environmental, Issues related to Legal compliance
,Occupational Safety & Health implementation,Training , AMDAL, UPL/UKL,
RKL/RPL Aspect Impact Analysis
Site visit: Mill tour
Interviews: Weighbridge operator, Boiler operators, Engine Room Operator,
Head of Mill, staff operation, foreman) and Mill Worker ( operator)
2.4 Stakeholder Consultation and Stakeholders Contacted
The stakeholder consultation involved both external and internal stakeholders. External stakeholders were noti-
fied to make comments on the certification assessment by placing an invitation to comment on the RSPO web-
site. Stakeholders included those immediately linked with the operation of the company such employees, out-
growers, the local government, NGO’s, trade and labour unions and local communities.
Stakeholder consultation took place in the form of meetings and interviews. Meetings with stakeholders were
held to seek their views on the performance of the company with respect to the sustainability practices outlined
in the RSPO Principles & Criteria, and to comment on aspects where improvements could be made. Meetings
with local communities were held at their respective premises within and near the company’s area. A stake-
holder consultation meeting was also held at the PT Murini Sam Sam Palm Oil Mill on 3 November 2015. Let-
ters inviting individual stakeholders to the stakeholder consultation meeting were prepared and sent to the indi-
vidual stakeholders, while electronic mail and telephone calls were made to arrange the meetings.
In all the interviews and meeting, the objectives of the RSPO and the purpose of the assessment was clarified
at the outset followed by an evaluation of the relationship between the stakeholders and the company before
discussion proceeded to obtain the stakeholders feedback on the company’s compliance to different aspects of
the RSPO Principles & Criteria. Although several stakeholders were not familiar with RSPO but they agreed
QMF: RSPO-007a-13(Rev.0)RSPO Certification Assessment Report
PT Murini Sam-Sam (Wilmar International Group)
Bengkalis, Riau, Indonesia
Page 17 of 66
with its objective and expressed their willingness to collaborate in the promotion of sustainable palm oil in North
Sumatera province. In all interviews and meetings, the assessment team did not restrict discussion of both the
positive and negative aspects of operations conducted by the company’s estate and mill.
The stakeholder consultation meeting held with stakeholders during the audit was extensive and productive,
with 24 attendees. This was followed by site inspections, including visits to the local communities, interviews
with land claimants and contractors, and inspections of worker amenities and infrastructure. All stakeholder is-
sues raised were recorded and forwarded to the management for their written reponse, and this is summarized
in Section 3.4.The list of stakeholders that attended the stakeholder consultation meeting and stakeholders in-
terviewed during the assessment is included as Appendix 4.
2.5 Date of Next Surveillance Visit
The next surveillance visit is planned for March 2017.
3.0 ASSESSMENT FINDINGS
3.1 Summary of Findings
During the certification assessment, no nonconformities were assigned against Major Compliance indicators
while 1 (one) nonconformity was assigned against Minor Compliance Indicators. 14 observations or opportuni-
ties for improvement were identified. Further explanation of the non-conformities raised and corrective actions
taken by the company are provided in Section 3.2. The observations & opportunities for improvement are listed
in Appendix 5.
The following is a summary of findings made for the criteria listed in the RSPO Principles & Criteria year 2013
• RSPO Principles & Criteria (P&C)
Criterion 1.1: Oil palm growers and millers provide adequate information to other stakeholders
on environmental, social and legal issues relevant to RSPO Criteria, in appropriate languages &
forms to allow for effective participation in decision making.
Findings:
There was a letter register book named as Logbook (internal and External) showed during audit. All of
incoming communication regarding information request were by a written letter and has registered in
Mail Logbook. The logbook recorded information according to the sender (stakeholders), date and
letter number, type of information request, disposition and responses (directly or by letter with date).
There were are some specific information (as mentions on P&C 1.2) requests from stakeholders to the
company. Other types of information requests are also registered in the logbook, such as request for
contributions or permission to carry out an activity. Records of responses to requests for information
from the company are recorded on the log book.
The company is using Standard Operating Procedure (SOP) no. PRO-BM-007 issued at August 1st
2015, as the guidance of responding and information request from stakeholders. The company still
follows these procedures and showed that they keep to their commitment for transparency. Every
information request from stakeholder has responded properly. Stakeholders from local community that
has been interviewed during this audit informed that PT MSS is very open to communication. The
records of incoming and out-coming letters have been maintained at least 3 years as described by the
SOP.
Records of requests for information from PT. Murini SamSam in response to Information Requests
(form FRM-BM-004) in 2015 were sighted, with some examples as follows :
Estate PT Murini SamSam :
1. Letter from Committee development Masque Darul Hikmah Sei Meranti District of Pinggir
No.05/Pan/Mus-DH/SM/I/2015 date January 15th 2015 concerning a request for help for the
construction of a mosque.
QMF: RSPO-007a-13(Rev.0)RSPO Certification Assessment Report
PT Murini Sam-Sam (Wilmar International Group)
Bengkalis, Riau, Indonesia
Page 18 of 66
2. Letter form SMAN 6 District of Pinggir , No. 420 / SMAN 6 / P / 2015/105 concerning request to bor-
row heavy equipment (loader) from PT MSS dated October 26th, 2015
3. Letter from Head of pangkalan Libut Village No. 37/PEM/PKL/X/2015 dated October 2th 2015,
concerning request for help as piled land.
PT Murini Samsam Mill:
1. Letter from Head Sector Police Pinggir no B/12/1/2015 dated January 31th 2015 concerning
requests for help with electrical poles.
2. Letter from Community Youth Organization Pangkalan Libut Village, no. 03/KTPB/III/IX/2015 dated
September 7th 2015 requesting help to provide fresh water.
3. Letter from Head Sei Meranti Village date September 30th 2015 concerning request for help heavy
equipment (Grader).
Responses to request for information request from the company were sighted as follows:
Estate:
1. Letter from PT MSS to Head of High Scool (SMA N 6) District of Pinggir the response letter
regarding the Request Help Heavy Equipment (Loader) No: 081 / KBN-MSS / X / 2015 dated
October 27 th 2015 which states that: The company is not able to provide assistance due to damage
to heavy equipment
2. Response letter No. 003 / KBN-MASS / I / 2015 concerning the request for assistance for the
construction of the Development Committee Masque Darul Hikmah Sei Meranti Village, the Company
may request assistance helps the soil piled as many as 50 cars.
3. Available response letter Letter No. 37 / PEM / PKL / X / 2015 dated October 2, 2015 from the Office
of the Chief of Base Village Libut Kec. Pinggir regarding: Request assistance to borrow a wheel
barrow, in the form of a reply request for help no: 077 / KBN-MSS / X / 2015, and the company stated
that they can help the request.
Mill:
1. Available response letter number 003 / EXT / MCC / MSS / II / 2015 to letter number B / 12/1/2015 of
Head Police Sector Pinggir dated January 31th 2015 regarding requests for assistance of electrical Pole.
The company stated that they can help with this request.
2. Available response Letter no. 005/EXT/PKS/MSS/II/2015for Community Youth Organization
Pangkalan Libut Village , No: 03/KTPB/III/IX/2015 date September 7th 2015 , concerning for help fresh
water. The company stated that they can help with this request.
3. Available response letter form PT MSS no 004/EXT/PKS/MSS/II/2015 for of Head Sei Meranti Village
date September 30th 2015 concerning request for help heavy equipment (Grader). The company stated
that they can help with this request.
The company has a Records Control Procedures No.PRO-GEN-002 approved by AGM dated October
26, 2013 Objective to ensure records pertaining to quality management systems, environmental, OSH
and RSPO identified, stored and maintained safely and secure until a certain period before the docu-
ments are authorized to be destroyed.
This documents describes the minimum timeframe to maintain documents and records as follows:
1. Quality Management System Documents - 5 years.
2. Administrative document - 5 years,
3. Tax related documents - 10 years, Finance related document - 10 years, instantion 5 years
4. Personnel files and clinical records - 5 years.
5. 3 years for personnel files and clinics after the employee resigns or is no longer employed at PT MSS
6. All CSR records shall be maintained according to the need of the company
Compliance status: Full Compliance
Criterion 1.2: Management documents are publicly available, except where this is prevented by
commercial confidentiality or where disclosure of information would result in negative environ-
mental or social outcomes.
Findings:
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PT Murini Sam-Sam (Wilmar International Group)
Bengkalis, Riau, Indonesia
Page 19 of 66
The company has a procedure number PRO-BM-007 Rev 01 dated August 1st 2015 regarding
Communication, Consultation and Coordination with stakeholder. The procedure describe how to
responds communication, consultation and coordination initiative from stakeholders. This document
also describes the method of communication to stakeholders such as:
1. General Information Requests and Company’s Policies.
2. Inputs, Feedback and compaint mechanism regarding the company’s operational impacts.
3. Requests for assistance, Community Development (CD) and Corporate Social Responsibility (CSR)
4. The document is completed with communication process flowchart.
This document desribe the kind of documents that could accessed by stakeholders as follows:
1. Company Profile
2. Corporate Policy
3. The organizational structure of Employees
4. Plant operational procedures
5. Plant operational records
6. Report of HCV and HCV Management Plans
7. Company CD Checks and CSR Reports
8. SIA Reports
9. Environment Impact Assessment documents
10. Data on Company Employees
11. Data on use of foreign labor
12. HGU (land use rights) and other licenses and permits
Compliance status: Full Compliance
Criterion 1.3: Growers and millers commit to ethical conduct in all business operations and
transactions.
Findings:
The company does not yet have a policy on ethical conduct prepared in the name of Wilmar Group.
The company is currently adopting the policy of PPB Oil Palms Berhad namely a memorandum dated
May 13, 2015 signed by the Chairman & MD PPB Oil Palms Berhad.
Compliance status: Non-compliance
NCR No. 2016-01 of 01
The company does not yet have a policy on ethical conduct prepared in the name of Wilmar Group.
Criterion 2.1: There is compliance with all applicable local, national and ratified international laws
and regulations.
Findings:
There is evidence of company’s efforts taken to comply with legal requirements and records that the
company has submitted required report to local institutions as required. Examples found are as follows:
Estate :
- Hazardous waste permit for estate dated 24 November 2014 and valid for 5 years, issued by the
‘Board of Investment and Integrated Licensing Services’
- Mandatory Reports to the Social and Manpower of Bengkalis District January 2015, Registration
Number: 070 255 / DKTK / 2015 dated January 22, 2015, the obligation to register again on January
23 2016.
- Report of UKL-UPL first half of 2015 was sent to the Environment Agency (BLH) Bengkalis on 3 Sep-
tember 2015, the Agriculture Agency Bengkalis district on 3 September 2015, BLH Riau Province on
27 August 2015.
- Report from the Committee of Occupational Health and Safety (‘Panitia Pembina Keselamatan dan
Kesehatan Kerja’/ P2K3) period from April to June 2015, provided proof of receipt by the Office of
Manpower District Bengkalis dated August 28, 2015
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PT Murini Sam-Sam (Wilmar International Group)
Bengkalis, Riau, Indonesia
Page 20 of 66
- Report P2K3 period from July to September 2015, provided proof of receipt by the Office of Manpower
District Bengkalis dated October 1, 2015.
- Report on Fire Monitoring Procedures land and plantation development report (LPUP) the first half of
2015, provided proof of receipt by the Department of Plantation Kab.Bengkalis on 3 September 2015.
- Investment Activity Report of the first half (January - June) 2015 to the Board of Investment and the
Regional Licensing Riau Province were sent online and received by the Regional Investment Coordi-
nating Board Indragiri Hilir District No. LK84900 report dated July 13th, 2015.
PT Murini Samsam have a procedure which covers a comprehensive list of international, national, sub-
national and provincial laws which details the requirements of specific to the mill and estate operations.
In the list of regulation and legislation are available list of document distribution to all levels of man-
agement of the company. The company conducts audits for compliance to laws and regulations annu-
ally. The company also has a copy of the legal requirements for each area is kept by the person in
charge of each section.
The company has procedures of the identification and evaluation the legal aspects of the legislation
that applies with the document number BM-004 PRO-00 revision effective date of 1 November 2013.
In the procedure is mentioned personnel who is responsible for the identification and evaluation of laws
and regulations, as follows:
• For requirements pertaining to the estate, it is the Community Development or ‘Binamitra’
Manager supported by other departments in the the company's organization
• For requirements pertaining to health, safety and the environment, it is the Environmental,
Health & Safety (EHS) department supported by other departments in the the company's or-
ganization
• For requirements pertaining to labour, it is the Human Resources Manager supported by other
departments in the the company's organization
A relevant section within the law that is identified and linked to activities on PRO-BM-003 Law and reg-
ulation compliances, The SOP states that the identification and evaluation is to be carried out at least
annualy or when some law and regulation has change where applicable and conducted by the each
section, and estate and will be compiled by Legal officer and supported by the Head of Operations /
field and other departments within the company organisation. Murini Samsam Estate and Palm Oil Mill
maintains and updates their list of all applicable legal requirements relating to environmental, occupa-
tional safety and health, the company plantations, and employment as well as records of internal com-
pliance checks to legal requirements. Example of latest amendments to the legal requirements register
are as follows:
• For labour, there is available minutes of updates and revisions documents of a list the laws,
regulation and legislation on 1 April 2015 where in the minutes there is addition of several reg-
ulations such as: Act RI No.20 of 1990 about Minimum age is permitted to work, Permenaker-
trans No. 07/2013 on the minimum wage
• For environment, there are additions of the latest regulations, i.e. Act 37 of 2014 on the Soil
and Water Conservation, Act No.39 of 2014 on Plantations, Indonesian Republic Government
Regulation (Peraturan Pemerintah (PP) Republik Indonesia (RI)) no. 101 year 2014 regarding
Hazardous Waste Management, Environmental regulation (‘Peraturan Menteri Lingkungan
Hidup’ (PermenLH)) No.14 of 2013 regarding Hazardous Waste Symbols and Labels, Regula-
tion (‘Undang-undang’ (UU)) RI No.37 tahun 2014 related to Soil and Water Conservation, UU
RI No.39 tahun 2014 Plantation
• For health and occupational safety is the addition of the latest regulations: Ministry of Health
Decision (‘Keputusan Menteri Kesihatan’ (Kepmenkes)) No.1405 of 2002 about the health re-
quirements of office and industrial work environment, Regulation on Minister of Manpower and
Transmigration (Peraturan Menteri Tenaga Kerja dan Transmigrasi (Permenakertrans)) No.04
of 1993 on Accident Insurance, and Manpower regulation No.26 year 2014 related to OHS
management system.
• For the plantation is the addition of the latest regulations: Government Regulation in Lieu of
Law (‘Peraturan Pemerintah Pengganti Undang-Undang’ (Perpu)) 01/2004 revision of Act
41/1999 on Forestry, Act 19/2004 revision of Act No.41 of 1999 on Forestry, Act No. 40 of
2007 on Limited Liability Companies, Act No. 17 of 2012 on Cooperatives, Act No. 39 of 2014
on Plantations, Agriculture Ministry Regulation (Peraturan Menteri Pertanian (Permentan)) 11
2015 about certification systems Indonesian Sustainable Palm Oil (ISPO)
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PT Murini Sam-Sam (Wilmar International Group)
Bengkalis, Riau, Indonesia
Page 21 of 66
In the procedure contained source of information for the identification and evaluation of changes in
laws and regulations can be obtained through several sources, namely:
• Book of law and regulation
• Non-governmental organization
• Public information media such as TV, newspaper, internet, email
• Seminars and conferences
• Related agencies
The company provides a mechanism for evaluation of implementation and compliance to applicable legal
requirements in a standard operation procedure i.e. PRO-BM-003 and Form FRM-GEN-028 for OHS Law
and Regulation List Register, rev 01, dated 01 May 2015, Form FRM-GEN-029 for Plantation Law and
Regulation List Register, Form FRM-GEN-027 for Environmental Law and Regulation List Register, Form
FRM-GEN-026 for Manpower Law and Regulation List Register.
Compliance status: Full compliance
Criterion 2.2: The right to use the land can be demonstrated, and is not legitimately contested
by local communities with demonstrable rights.
Findings:
The company has the legal ownership of land as evidenced by the record:
• Decree of the State Minister of Agrarian / Head of National Land Agency with the number: 26 /
HGU / BPN / 94 on the granting of Hak Guna Usaha
• Land Use Rights (‘Hak Guna Usaha’ (HGU)) Certificate No. 1 dated January 20, 1995
• Business License Plantation from Local Department of Plantation Bengkalis with number: 1287
/ UT.518 / VIII / 2004 dated August 14, 2004
• Business license plantation industries from Local Department of Plantation Bengkalis number:
1558 / UT.560 / II / 2005 dated February 7, 2005 with a mill capacity of 90 tons / hour.
The company has documents that describe the history of the land, among others:
• Document Upaya Pengelolaan Lingkungan Hidup dan Upaya Pemantauan Lingkungan Hidup
for Estate and Palm Oil Mill area of 1233.13 ha in 2002.
• High Conservation Value Identification document (HCV Identification) by Re Mark Asia on
2014
• Social Impact Assessment document (SIA) on 2014
The company has a Special Situation Pictorial Map (‘Peta Gambar Situasi’) Khusus No. 12/1993 with
an area of 967 hectares located in the Pinggir village, District Mandau, Bengkalis, Riau Province issued
by BPN Riau Province. Based on field observation, done checking peg No. 07, 08, 11, 21 and 22. By
sampling the peg in good condition and well maintained. The company has procedures Identification
and Maintenance of the Boundary HGU with the document number BM-009 Pro-00 revision dated valid
on 1 November 2013. In these procedures regulated on the implementation of the boundary mainte-
nance conducted every 3 months. The company also conducts regular maintenance of the existing
concession.
The company has an SOP for Dispute Settlement / Land dispute No. PRO-BM-006 dated 01 November
2013. The purpose is for defining land dispute resolution mechanisms that occur on estate nucleus
land (land controlled and managed by the company). The procedure is as follows:
1. Issues regarding land disputes raised by the public are to be submitted in writing to the company
Development Partners and Legal.
2. The ‘Bina Mitra’ (BM) Staff shall analyze and review land claims of which the result will be submitted
to the Chief Operating Unit.
3. The BM Staff will conduct analysis and verification based on evidence of land acquisition.
4. Affected parties will be invited for clarification and mediation.
5. If no agreement is reached then the company shall apply to local governments to facilitate the set-
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PT Murini Sam-Sam (Wilmar International Group)
Bengkalis, Riau, Indonesia
Page 22 of 66
tlement of disputes.
6. If no agreement is reached, the settlement shall proceed through legal proceedings.
Based on interview with community surroudings the company was found there were no conflict
between the community and the company. This condition was completed by official announcement
letter from the village head or head of community, stated that there were no conflict between both
parties. Based on the statement area there are areas of land under dispute between the company and
the community. Hence the company has no record of deliberation progress for the settlement of
disputes.
Compliance status: Full compliance
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.
Findings:
Based on field observation and interviews with the surrounding community, there were no areas under
customary rights of local communities identified within the plantation, even when the plantation area
was occupied by previous company for other purpose. The SIA report also did not indicate that there
were any areas under customary rights within PT .MSS plantation area
Based on interview with the communities surrouding the company, thetre was found there were no con-
flict between the community and the company. This condition was supported by official announcement
letter from the village head or head of community, stated that there were no conflict between both par-
ties.
And based on the statement area use of the land by PT. MSS for oil palm does not diminish the legal
rights, customary rights or use rights of other users around estate PT MSS and there are no areas of
land into a dispute between the company and the community. Therefore the company has no record of
deliberation progress for the settlement of disputes
Compliance status: Full Compliance
Criterion 3.1: There is an implemented management plan that aims to achieve long-term eco-
nomic and financial viability.
Findings:
The company has a document budget and projection for 5 years (2015-2020) for PT Murini Sam Sam
Estate and Mill,including the following contents:
- Financials
- Area Statement, Crop & Estate Costs
- FFB Processed & Milling Cost
- Plantation Development Cost
- Capital Expenditure for Estate and Mill
- Sustainability Implementation Costs
Under Financials, the annual projected amount of FFB processed from own estate and own crop, pro-
jected annual Oil Extraction Rates (OER) and Kernel Extraction Rates (KER) and projected Crude
Palm Oil (CPO) and Palm Kernel (PK) production was stated. Under the Profit and Loss sheet, the pro-
jected annual FFB prices for own crop and outside crop as well as projected annual CPO and PK pric-
es were stated in Rp‘000, with estimated annual revenue calculated as well and indicating positive total
revenue.
The company plans to carry out replanting in year 2018 with a mix of 75% clonal oil palm plantlets
(Ramets) and and 25% DXP (Tenera) planting material. The clonal planting material is used as it is ex-
pected to have a higher yield than the commonly used DXP planting material.
QMF: RSPO-007a-13(Rev.0)You can also read
