MANAGEMENT FOR

SUSTAINABILITY
IN MUSIM MAS

Presentation at the RSPO Indonesia

Liaison Office (RILO) Meeting on
Update of P&C Trial Implementation

By Tan Tian Sang, Director of Estates

26 March 2007, Jakarta
Our Vision
 MUSIM MAS PLANTATIONS
SUMUT – R.PRAPAT PT.
PT. SIRINGO2
SIRINGO2 :: 1.490
1.490 HA
HA

2006
2006 RIAU - SOREK PT.
PT. MUSIM
MUSIM MAS
MAS :: 28.337
28.337 HA
HA

LAND
LAND BANK
BANK PADANG - PASAMAN PT.
PT. AGROWIRATAMA
AGROWIRATAMA :: 10.990
10.990 HA
HA

KALTENG - SAMPIT PT.

PT. SUKAJADI
SUKAJADI SAWIT
SAWIT MEKAR
MEKAR :: 19.802
19.802 HA
HA

PT.
PT. MAJU
MAJU ANEKA
ANEKA SAWIT
SAWIT :: 19.906
19.906 HA
HA

PT.
PT. GLOBALINDO
GLOBALINDO ALAM
ALAM PERKASA
PERKASA :: 16.063
16.063 HA
HA

PT.
PT. UNGGUL
UNGGUL LESTARI
LESTARI :: 14.445
14.445 HA
HA

SUMSEL – PALEMBANG PT.

PT. BERKAT
BERKAT SAWIT
SAWIT SEJATI
SEJATI :: 11.539
11.539 HA
HA

TOTAL
TOTAL :: 122.572
122.572 HA
HA

KKPA RIAU
RIAU :: 1.624
1.624 HA
HA

SUMATERA
SUMATERA BARAT
BARAT :: 1.526
1.526 HA
HA

1988
1988 :: 162
162 HA
HA
TOTAL
TOTAL KKPA
KKPA :: 3.150
3.150 HA
HA

GRAND
GRAND TOTAL
TOTAL :: 125.722
125.722 HA
HA
 MUSIM MAS
PALM OIL MILLS
Musim Mas has 8 operational Palm Oil Mills :

PT. Siringo-ringo – Sumut 1990

PT. Musim Mas – Riau 1997
PT. Agrowiratama – Sumbar 2000
PT. Bahana Nusa Interindo – Riau 2002
PT. Indomakmur Sawit Berjaya – Riau 2003
PT. Sinar Agro Raya – Riau 2004
PT. Musim Mas – Riau 2005
PT. Sukajadi Sawit Mekar – Kalteng 2006

Total Capacity 425 T FFB/hr = 234,000 T FFB/mth

= 55,000 T CPO/mth
= 33,000 T PK/mth
= 14,400 T PKO/mth
 IMPLEMENTATION OF P&C:
BMPs …examples

Legume cover plants Zero burning Musim Mas fire brigade

Mulching with EFB IPM – Beneficial plants Safe use of pesticides

 EFFLUENT TREATMENT & APPLICATION
BIOLOGICAL DIGESTION IN LAGOONS LAND APPLICATION

Effluent Lagoons before commissioning PKS Balam Land Application area PKS Balam

Effluent Lagoons after commissioning PKS Balam Land Application beds PKS Balam

Effluent Lagoon PKS Agro Land Application area PKS Agro

 SOCIAL ASPECTS
Suraus & Polyclinics

Kindergarten, Schools & School Buses

 WORKER AMENITIES

Housing Area PKS Balam Musholla PKS Agro

Housing Pasir Pangarayan Housing Area & Musholla PKS Sorek

HR DEVELOPMENT
 CORPORATE SOCIAL
RESPONSIBILITY (1)

Scholarships Assisting Poor in Desas Assistance to Orphanages

Wells & Gensets Financing Desa Projects KKPA Projects

CORPORATE SOCIAL
RESPONSIBILITY (2)
 MANAGEMENT FOR
SUSTAINABILITY IN MUSIM MAS
• Musim Mas believes that a holistic and integrated
approach needs to be taken to achieve sustainability by
the whole company.

• RSPO P&C should be the basis for managing the

enterprise and not just a means to certification.

• Management of sustainability at Musim Mas involves

¾ Management system based on RSPO P&C
¾ Management structure
¾ Phased implementation activities
 SUSTAINABLE PALM OIL
PRODUCTION
…” is comprised LEGAL
of legal,
economically
Economic
viable,
environmentally
appropriate and
socially
Environmental Social
beneficial
management
and operations.”
 BUILDING BLOCKS OF
MANAGEMENT SYSTEM FOR SPO

Drivers Enablers Processes Results

Principles 3 & 8 PDCA approaches Principles 2, 4, People, Planet

(GP, ISO 14000 etc) 5, 6 & 7 Profits (KPIs)

Principle 1: Commitment to Transparency

MANAGEMENT SYSTEM FOR SUSTAINABLE PALM OIL PRODUCTION
PROCESSES

Principle 2:
RESULTS
Compliance of
ASSESSMENTS applicable laws
and regulations
Legal
Internal:
SWOT analysis compliance
Self- Principle 4:
Use of

Monitoring and Evaluation

assessments
appropriate best
practice by
growers &mills
DRIVER (1) DRIVER (2) ENABLER Economic
KPIs
Principle 3: Principle 8: Principle 5:
Commitment to Commitment to GREEN Environmental
long term continuous PRODUCTIVITY responsibility &
economic and improvement in (GP) conservation of
financial viability key areas nat. resources
Environ-
mental KPIs
Principle 6:
External: Responsible
Supply chain consideration of
assessments employees and
Market share affected people

Social
Principle 7: KPIs
Responsible
development of
new plantations

Principle 1: Commitment to transparency (Communication)

 WHAT IS GREEN PRODUCTIVITY?

Ensures profitability

Green Productivity (GP) is a strategy for Enhances Quality of Life

enhancing productivity and environmental
performance for overall socio-economic
development. It is the application of appropriate
productivity and environmental management
tools, techniques, technologies to reduce the Reduces environmental
environmental impact of organization’s impact
activities, goods and services.
 SENIOR MANAGEMENT STRUCTURE
President
Director
Musim Mas
Steering Committee
on Sustainability

Director Head Director

Estates Sustainability Production

Estates Dept Sustainability Dept Prod Dept

Regional GM Regional GM Chief Engineer

1 2 3 4 5 6 7 8 1 2 3 4

General Managers Controllers

 MUSIM MAS
STEERING COMMITTEE
ON SUSTAINABILITY (MMSCS)

• President Director (Chairman of MMSCS)

• Director, Estates
• Director, Production
• Head, Sustainability Dept (Secretary)
• Advisor on Sustainability
 MUSIM MAS
STEERING COMMITTEE
ON SUSTAINABILITY (MMSCS)

Mission of MMSCS

To drive and support Musim Mas

commitment to the production of
sustainable palm oil
ROLES & RESPONSIBILITIES
Steering Committee - MMSCS

• Formulate policies to meet RSPO P&C

(environmental, social and economic)
• Establish processes for identifying
opportunities for improvement
• Provide support and resources (people,
time, funds)
• Establish measures (KPIs)
 ROLES & RESPONSIBILITIES
(contd)
Steering Committee - MMSCS

• Monitor and review progress of

performance against KPIs
• Provide Reward and Recognition system
• Establish processes for effective
engagement of stakeholders (NGOs etc)
• Communicate Musim Mas commitment
and progress on sustainability
 MAJOR ACTIVITIES
• Establishment of Sustainability Dept
• Senior Management Workshop
• Self assessment of Musim Mas Group against P&C
• Phased Implementation
– PT by PT
– Project by Project
– Certification to RSPO P&C
• Development & Implementation of Musim Mas
Strategic Plan
• Monitoring and evaluation
– Group level
– Operations level
• Development and implementation of
communications strategy
WORK PLAN
FOR YEAR 1
PHASED IMPLEMENTATION
BM Audit 1st PT
Train
Do Projects
Implement Improvements
Do & Implement New Projects
Certify

BM Audit 2nd PT
Train
Do Projects
Implement Improvements
Do & Implement New Projects
Certify

BM Audit 3rd PT
Improvement Projects Train
Do Projects
New Projects
Implement Improvements
Do & Implement New Projects
Certify

Time
 SENIOR MANAGEMENT
WORKSHOP ON SUSTAINABILITY

27 Feb to 01 March, 2007

 MUSIM MAS POLICY ON
SUSTAINABILITY

Participatory Approach
 MUSIM MAS POLICY ON
SUSTAINABILITY
We at Musim Mas, are committed to conduct our businesses in a
environmentally friendly, socially acceptable & economically
viable manner while meeting the highest quality expectations of
our customers :

In our pursuit of corporate excellence, we shall:

• Abide by RSPO Code Of Conduct

• Comply with all applicable laws and legal requirements
• Ensure occupational safety and health in the work place
• Contribute and actively involve in community development
• Develop, implement and improve environmentally responsible
practices
• Involve our employees in the implementation of this policy
• Communicate our effort on sustainability to our internal and external
stakeholders
Thank You