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Palm Oil Innovation Group (POIG)

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About POIG

Contents

The Palm Oil Innovation Group (POIG) aims to support the Roundtable on Sustainable Palm Oil (RSPO) through building on RSPO standards and commitments and by demonstrating innovation to implement existing RSPO standards as well as with additional critical issues.

POIG focuses on three thematic areas of environmental responsibility, partnerships with communities, corporate and product integrity. It also focuses on creating and promoting innovation in the Palm Oil industry. 

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POIG will demonstrate that by setting and implementing ambitious standards, the industry can break the link between Palm Oil and deforestation, as well as human, land and labour rights violations.

Musim Mas' plantations and trading divisions joined POIG on 16 November 2015. The Group will implement and promote the formal requirements of the POIG Charter, as well as abide by POIG's terms of engagement. 

For more information on POIG, please click here


POIG Charter and Indicators


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The POIG Charter can be assessed here and verification indicators here


Labour Audit Report


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The Group undertook a labour audit with Verite, in August 2016 as part of its efforts to assess labour conditions in its operations.

The assessment aimed to identify risks of non-conformance to POIG’s Charter, RSPO Principles and Criteria, Verité Best Practice Standards and other international norms on worker protection and Occupational Health and Safety. They also targeted to determine the areas of innovation required.

While the labour assessment highlights areas of labour risks, it also presents potential learnings through recommendations on how Musim Mas’ management systems and tools may be improved.













The audit and findings are categorised into three broad categories, namely, labour and human rights, compensation and hours, as well as health and safety. 

Some of the good labour practices identified during the assessment included:
  • The company does not employ child labour; 
  • Workers are guaranteed the legal minimum wage as their base wage, regardless of their ability to meet the quota;
  • Probationary workers are upgraded to permanent status after three (3) months as per law;
  • The company has a low precarious employment rate;
  • There are good policies on maternity (pregnancy testing is not discriminatory, work accommodation during pregnancy, respect for women’s legal right to maternal leave, and clear breastfeeding policy); and
  • There is no indication that workers’ identity documents are retained.

The key areas for improvement identified during the assessment included:
  • Addressing the number of overtime hours;
  • Protecting workers who are not on the official payroll;
  • Improving housing policy with regards to gender; and
  • Ensuring sufficient water supply.

In the one-year period since the assessment leading up to the publication of the report today, the Group has reviewed the gaps in the highlighted areas and worked to address highlighted issues, enabling case closure in most aspects. Musim Mas is still working on other matters requiring lengthier consideration and implementation processes to straddle business realities with labour rights considerations.

Corrective actions undertaken following the assessment, of which are detailed in the assessment report include: 
  • Capping of normal period overtime hours at 14 hours a week and (3) hours a day; ensuring all overtime is voluntary and paid in accordance with legal standards;  reviewing of rotation system to address work life balance; and limiting the number of off days that workers may choose not to take; 
  • Formalising of kernet workers (usually workers’ spouses) through developing part-time employment contract and insurance. Upon compliance with the employment terms, kernet workers are recruited as permanent workers;
  • Providing of unrestricted menstrual leave to female workers in accordance with applicable laws; recognising of female workers as head of family for housing entitlement as verified in the family card; and
  • Studying of water consumption pattern in the household to derive a new water distribution system to ensure equitable supply of free clean water to all households.

To view the report, please click here



Notification of Upcoming POIG Verification Indicator Assessment of Musim Mas RSPO certified mills in Indonesia


In line with its ongoing commitment as a member of the Palm Oil Innovation Group (POIG), Musim Mas Group is announcing its next evaluation of conformance with the POIG Charter and Verification Indicators (v. March 2016), which will take place between February and April 2018. The assessment will be conducted by the Rainforest Alliance and will cover ten of Musim Mas Group’s Roundtable on Sustainable Palm Oil (RSPO) certified mills in Indonesia. 

The evaluation will be carried out through the assessment of four mills, which have been selected as a sample based on the Rainforest Alliance risk assessment, which considers geographical distribution, type and number of supply bases of the ten mills included in the evaluation scope. The four selected mills are:

  • PT Berkat Sawit Sejati located in Desa Tampang Baru, Kecamatan Bayung Lencir, Kabupaten Musi Banyuasin, Propinsi Sumatera Selatan, Indonesia;

  • PT Unggul Lestari located in Desa Tumbang Sepayang, Kecamatan Antang Kalang, Kabupaten Kotawaringin Timur, Propinsi Kalimantan Tengah, Indonesia;

  • PT Maju Aneka Sawit located in Desa Tanah Putih, Kecamatan Telawang, Kabupaten Kotawaringin Timur, Propinsi Kalimantan Tengah, Indonesia; and

  • PT Siringo-Ringo located in Jl. Siringo Ringo, Desa Bandar Kumbul, Kecamatan Bilah Barat, Kabupaten Labuhan Batu, Rantau Prapat, Propinsi Sumatera Utara, Indonesia.

As part of the POIG evaluation process, the Rainforest Alliance is inviting stakeholders to offer comments and feedback on Musim Mas Group in relation to conformance with the requirements of the POIG verification indicators. Stakeholder consultations will be held for each of the four mills undergoing assessment. The first consultation will be conducted for PT Berkat Sawit Sejati at 10am local time on 7 February 2018 at the PT Berkat Sawit Sejati office in Desa Tampang Baru. Feedback may also be submitted to the Rainforest Alliance prior to consultation dates, and at any stage of the assessment process, preferably before 9 March 2018. The schedule for the stakeholder consultation for the 2nd, 3rd and 4th mill assessment will be posted in the Rainforest Alliance website one month prior to the field visit date.

For more information on the assessment, as well as details on how to participate in the upcoming consultations, please click here to view the assessment notification on the Rainforest Alliance website.

For more information, please refer to the POIG website.  


Briefing Paper: Evaluation of Musim Mas RSPO certified mills in Indonesia

With respect to the Palm Oil Innovation Group (POIG) Verification Indicators

16 March 2018

The Rainforest Alliance is conducting the POIG evaluation on ten RSPO certified mills of Musim Mas
Group located in Indonesia. The evaluation is conducted through assessment on four mills selected
as sample between February and April 2018 using the POIG verification indicators version March
2016. The four mills selected as sample are PT Berkat Sawit Sejati, PT Unggul Lestari, PT Maju
Aneka Sawit and PT Siringo-Ringo. This is the fourth public briefing paper released for POIG
evaluation in PT Siringo-Ringo. The POIG evaluation team for this evaluation will be led by Mr. Iwan
Kurniawan and supported by an ecologist Mr. Wahyu F Riva and a social expert Ms. Trusti Y
Widiastuti.

PT Siringo-Ringo have been selected as sample based on The Rainforest Alliance risk assessment
which considers the geographical distribution, the type and number of supply base of ten RSPO
certified mills of Musim Mas Group located in Indonesia. Field assessment for PT Siringo-Ringo
located in Jl. Siringo Ringo, Bandar Kumbul village, Bilah Barat sub district, Labuhan Batu Regency,
Rantau Prapat, North Sumatera Province, Indonesia will be implemented at 16th - 20th April 2018.

The stakeholder consultation for PT Siringo-Ringo mill will be conducted on 18 April 2018, started at
10 AM local time, located at PT Siringo-Ringo office in Jl. Siringo Ringo, Bandar Kumbul village, Bilah
Barat sub district, Labuhan Batu Regency, Rantau Prapat, North Sumatera Province, Indonesia. This
public briefing paper will also serve as an invitation for this stakeholder consultation.

As a part of the POIG evaluation process we invite stakeholders to offer comment and feedback on
Musim Mas Group in relation to conformance with the requirements of the POIG verification indicators
referenced above. We welcome input, either public or confidential, in whatever form is easiest and
most secure for you. Your input will be valuable at any stage of the assessment process, but we
would prefer to receive it either prior to the assessment, during the assessment, or prior to 20th May
2018 so that we can take them into consideration in reaching an evaluation result in form of
consolidating report of four mills. You can communicate with us by meeting with the POIG evaluation
team member during or shortly after the field assessment or give input by telephone, mail, FAX or
email to Trusti Widiastuti or Lita Natasastra.

Unless you request otherwise, these comments and the source of any information provided will be
kept confidential available to only Rainforest Alliance staff and are solely for the purposes of Musim
Mas POIG evaluation.

Stakeholders who may wish to dispute any aspect of the POIG evaluation process can access Rainforest Alliance's Complaints, Appeals and Dispute resolution procedures at www.rainforest-alliance.org.

Contacting Rainforest Alliance
Email: twidiastuti@ra.org or lnatasastra@ra.org
Worldwide Website: www.rainforest-alliance.org.
Telephone: +62 361 472 3499
FAX: +62 361 472 3498
Mail address: Jl. Tantular Barat No.88, Dangin Puri Kelod, Denpasar Timur, Denpasar, Bali 80114, Indonesia

For more information on the evaluation as well as details on how to participate in the upcoming consultations, please click here to view the assessment notification on the Rainforest Alliance website. 

For more information, please also visit the POIG website.