'Certification on Sustainable Palm Oil:
Progress, problems and
future challenges'
International Conference and Exhibition on Palm Oil (ICEPO)
Jakarta, 2014
By : Tuti Suryani Sirait
PT Superintending Company of Indonesia (PT
SUCOFINDO) has been established on 22nd
October 1956, provides services in inspection,
testing, certification, and training.
PT. SUCOFINDO is the first and the biggest
National Inspection Company in Indonesia
 State Owned Company (BUMN)
 Established on 22nd October 1956
 Shareholders


95% Indonesian Govt.
5% SGS, Switzerland
HEAD OFFICE AND BRANCHES
33 Branches
32 Service Points
Laboratory service at PT SUCOFINDO branches and service points
BONTANG
BANJARMASIN
TARAKAN
SAMARINDA
BALIKPAPAN
BANDA ACEH
BATAM
SAMPIT
KETAPANG
PONTIANAK
LHOKSEUMAWE
MEDAN
DUMAI
PADANG
PAKANBARU
BENGKULU
JAMBI
PALEMBANG
BANDARLAMPUNG
PALU
MANADO
UJUNGPANDANG
TERNATE
AMBON
SORONG
JAYAPURA
SEMARANG
SURABAYA
BEKASI
TJ. PRIOK
CILEGON
JAKARTA
BANDUNG
CILACAP
CIREBON
CIKAMPEK
TIMIKA
KUPANG
CAKRANEGARA
DENPASAR
ACCREDITATION:

NATA Australia, Accreditation of Testing Laboratories

FOSFA England, Inspections and Palm Oil Testing Analysis

IECEE (International Electrotechnical Commission for Electrical & Electronic) – Accreditation as National
Certification Body and Certifiction Testing Laboratory)

RSPO, Rountable on Sustainable Palm Oil

Indonesia Ecolabel Institute, Sustainable Forest Management and Chain of Custody

National Acreditation Committee (KAN), Quality, Environment, Forestry, and Food Cert.
RECOGNITION:

RWTUV Germany, Testing Laboratories and Quality System Certification Institution

NKKK Japan, Surveyor and Quality System Certification Institution

IFIA England, Inspection and Commodity Supervising

GAFTA England, Inspection of grain and fodder

SGS Geneva Swiss, Surveyor and Quality System Certification Institution
PARTNERSHIP:

SISIR Singapore, Product Certification, Quality System Certification Institution and Testing LAboratory

SIRIM Malaysia, Product Certification, Quality System Certification Institution and Testing Laboratory

Lloyds England, Insurance Claim Settlement

CCIC RRC, Surveyor

INSPECTA Czech Surveyor and Consultant
SERCO Services – Accredited and Appointed by:
International Accreditation Forum (IAF)
National Accreditation Body (KAN)
Indonesian Ecolabel Institute (LEI)
IECEE-CB Scheme (National Certification Body)
Roundtable on Sustainable Palm Oil (RSPO)
Komisi ISPO – Ministry of Agriculture (ISPO)
Ministry of Forestry (SVLK – V Legal – Timber Legality)
Ministry of Manpower and Transmigration
Directorate General of Electricity - ESDM
National Police POLRI – Security MS Audit
SMK3
SBU CERTIFICATION AND
ECO FRAMEWORK
Integrated Management System
Quality Management System (ISO 9001)
Environment Management System (ISO 14001)
Sistem Manajemen Keselamatan & Kesehatan Kerja (SMK3) based on PP No. 50/2012
Occupational Health & Safety Management System based on OHSAS 18001
Product Certification (SNI)
Organic Food Certification
Security Management System (SMP) based on PERKAP No. 24/2007
Security Management System (SMP) ISO 28000
IT Security Management System (ISO 27000)
Energy Management System (ISO 50001)
Risk Management System (ISO 31000)
Hazard Analytical of Control Critical Point (HACCP)
Food Safety Management System (ISO 22000)
Good Manufacturing Practices (GMP) Certification
Indonesian Sustainable Palm Oil (ISPO)
Rountable on Sustainable Palm Oil (RSPO)
Audit Review and Monitoring of Environmental Management
Environmental Baseline Analysis
Validation & Verification of Glass House Gases (Carbon Audit, Carbon Footprint, Life Cycle
Assessment)
Energy Audit Bangunan
Environmental Impact Analysis (Amdal), UKL, UPL
Timber Legality Assurance System (SVLK)
Sustainable Forest Management (PHPL)
Annual Work Plan Supervision of Industrial Timber
Second Party Audit
Training
Certification ~ Sustainability
I. Progress :
- ISPO : Certified : 40 companies*)
- RSPO : Certified : 33 companies*)
*) Source : website, dated 23 May’14
II. Problems :
a. Legality.
b. Social
c. Environment
d. Safety
e. Best practices
III. Future challenging
- Responsibility of all stakeholders (Government, policy
makers, companies, certification body, worker, local
community).
8
Problems - Legality
Stakeholders ~ Government / Policy
Maker
1. Overlapping of regulation between Departments, ex. Dept
of Forestry and Dept of Agricultural regarding of Land
allotment for local community.
2. Standard of map and land boundaries : some maps without
coordinates and result unclear boundaries.
3. Variation of Local regulation.
4. Regulation with grey area, ex. The using of parraquat,
SMK3 certification for using high risk process.
5. No monitoring to ensure the implementation of regulation,
ex. UKL/RPL
9
Problems - Legality
Stakeholders ~ Company
1. Not comply to the regulation/license, especially for land
ownership (HGU)
2. Difficulties to sort out and manage all relevant regulations
3. Different interpretation of regulation, ex. Land for plasma.
10
s
Problems - Legality
Stakeholders ~ Certification Body
(auditor)
1. Complicated as many regulations involved
2. Lack of knowledge ~ No auditor with law education
background - difficulties to interpret the relevant clausal
3. Many variations of case in the field with different
interpretation of relevant regulation
4. Different perception/interpretation of certain regulation, ex .
UMR
11
Problems - Social
Stakeholders ~ Company
-
-
The regulation of Land for local community (plasma) is
ambiguous and trigger the conflict with the local community
CSR program is limited and no assurance to improve local
welfare
Social Impact Assessment (SIA) is conducted without
supporting with sufficient competency
Transparency is not well socialized or the company is not
ready yet to implement the transparency system.
The MOU for plasma /cooperation is not clear/equal (credit,
price, , payment, scope, etc)
12
Problems-Social
Stakeholders ~ Worker
-
Payment/salary : does not meet with regulation
Overtime: more than regulation permit
Labor status : still BHL which should be permanent
Lack of safety equipment, such as masker, apron, boots
Woman protection ex. Pregnancy test for productive woman
Worker protection for hazardous
Freedom to complain and joint the union ~palm oil still with
feudalism culture
Not meet with specific competencies, ex fire officer, boiler
man,
Lack of worker facility such as housing, clinic with sufficient
equipment and medicine, sport, water, school
13
Problems-Social
Stakeholders ~ Local Community
-
Land for local community (plasma) is misleading and
trigger the conflict with the company
CSR program does not meet with local community needs.
Negative impact assessment is not followed up with the
relevant action, ex. Road destruction
Transparency between company and cooperation for credit
and payment of debt (deducted from FFB received)
The transparency communication with company is not well
socialized
The right of indigenous people
The local people is not employed cause lack of attitude (the
culture background as a main reasons
14
Problems-Environment & Safety
Stakeholders ~ local community
-
Pollution of river from mill waste
Dust from road
Noise from mill
Pollution of river caused by chemicals (pesticide and
fertilizer) from planting of trees closed to the river)
Floating caused by the activity of land clearing
Decreasing of water source caused by plantation activity.
15
Problems-Environment & Safety
Stakeholders ~ Worker
-
-
No bath facility for sprayer – uniform washed at home
No sufficient safety protection equipment, ex. Mask for
chemicals purpose, earplug at mills
No sufficient methods to detect pregnant worker.
Extra-feedings methods and policy for sprayer is not done
properly ex. compensate with money
Storage of Hazardous material is potential to be exposed to
the worker
No specific competency for the high risk jobs
16
Problems-Environment & Safety
Stakeholders ~ Company
-
Emission, waste, hazardous, etc : need a significant value of
money to reduce the pollution  reduce the profit
Lack of competent personnel with the environment background
Lack of competent personnel with the safety background
Proper protection need a big effort and a lot of investment.
Productivity & profit are the highest priority
17
Future Challenges
Stakeholders ~ Company
- Maximalist, minimalist and or tricky in term of sustainability
- Maximalist : has a strong willingness to minimize the damage & has a
significant data / improvement for the social, environment and best
practice.
- Minimalist /tricky: has a minimum willingness to the standard
requirement (sustainability requirement) to have the certificate, company
image and or loan from bank
18
Future Challenges
Stakeholders ~ Certification Bodies
1. Should not be profit oriented only.
2. The variation of output/recommendation from all
certification bodies is vary
3. Auditor should be trustworthy, free from conflict of interest
4. The depth of audit
5. The knowledge of auditors
6. Monitoring of report and auditors
Accreditation body is a must to monitor integrity of all CB
19
Future Challenges
Stakeholders ~ Local Community
1. The land dispute will be no longer as the marking / border
stone between company and local community is clear.
2. Complain / conflict will be decreased significantly for
pollution (water, dust and noise)
3. Local welfare will be improved significantly (unemployment,
education, health, etc)
4. Transparency is well understood by all parties.
20
Future Challenges
Stakeholders ~ Government / Policy
makers
1. The standard should be made with the clear terminology and
avoid the mis-interpretation.
2. The member of organization (working group) should be free from
party with specific interest (avoid the conflict of interest)
3. The standard should have the point to ensure the data is exist
for improvement (environment, social and profit)
21
SICS – Sucofindo International Certification Services
Thank You
Sucofindo International Certification & Eco Framework Services
(SERCO)
Graha Sucofindo B-1 floor
Jl. Raya Pasar Minggu Kav. 34
Jakarta 12780
Phone : (021) 7983666 (#2605 Marketing)