Roundtable on Sustainable Palm Oil

Reporting GHG Emissions

PT. Putra Utama Lestari

Melak District, Kalimantan Timur Province

Indonesia

Prepared by :
PT. Putra Utama Lestari
2015
Table of Contents

1. Assessment Process and Procedure............................................................................. 3

1.1. Assessor and their credentials.. ............................................................................. 3
1.2. Assessment methods .............................................................................................. 4
1.3. Responsible Team for developing mitigation plan ......................................... 6
2. Summary of carbon stock assessment ......................................................................... 7
2.1. Location maps indicating area ………............................................................ 7
2.2. Land Cover Stratification ................................................................................ 9
2.3. Map and description of all area PT PUL …………………………………………. 12
3. Summary of GHG emission ……………....................................................................... 14
4. References ....................................................................................................................... 14
5. Summary of Management and Mitigaton Plans .................................................. 15
6. Internal Responsibility ................................................................................................... 20

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1 Assessment Process and Procedures
1.1 Assesors and their credentials
Carbon Stock Assessment Report in concession HGU PT. Putra Utama Lestari presented by
Aksenta (PT. Gagas Dinamiga Aksenta), consisting of five people. This is brief description of
the name, qualification, skills, and role within the team.

Idung Risdiyanto; MSc in Natural Resources Management Technology in the International

program organized by Institut Pertanian Bogor, after getting a bachelor's degree at the same
university in the field of Agrometeorologi. Starting his career by doing research on GHG (Green
House Gas) and water resources together with UNEP and PPLH IPB in 1997. After a lot of research
with leading institutions in Indonesia such as LIPI, LAPAN, BPPT and BMKG. Almost all the work is
the study of natural resource management, especially related to water resources, land and climate
change technology using Geographic Information System (GIS), Remote Sensing, Spatial Modelling
and Analysis. Idung Risdiyanto well as a team experts to the Ministry of Forestry of Indonesia to
address the problems of managing watersheds (DAS) in Indonesia since 2007 and teaches courses
in Climatology, Hydrometeorology, the application of GIS and Remote Sensing and Meteorological
Satellite Bogor Agricultural Institute. HCV is currently the assessor in Aksenta and has been listed
as the RSPO Approved HCVAssessor - Discipline Specialist in the field of Environmental Services.
In this study the role and responsibility of being a supervisor CSA and team leader-1.

Anwar Muzakkir; graduated from Padjadjaran Bandung University (UNPAD), Department

of Biology, Faculty Mathematics and Natural Sciences (F-MIPA) of 1993 and began his
career in the field of expertise flora. As a staff biologist on a Environmental, engineering and
National Management Consultant. Studies, management, and an environmental monitoring
in geothermal power plants; PLTP, PLTU, and PLTGU throughout Indonesia. From 1999
until mid 2003 joined BCP-JICA the Environmental Education program, Ecotourism and
Conservation of endangered species. From 2003 to 2007 joined PILI Green Network as
Manager Publication. In this team, responsible as team leader.

Kamaludin Asyaebani; graduated from the Department of Forest Resources Conservation

and Ecotourism, Faculty of Forestry, Bogor Agricultural Institute (IPB). Experienced in the
field of GIS and Remote Sensing for Conservation Biology and the issues of land use since
2013. Experienced in conducting research and studies of forest area by using GIS and
Remote Sensing. In the team, responsible as GIS and Remote Sensing Expert

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 Ikwan Agustian; graduated from the Department of Forest Resources Conservation and
Ecotourism, Faculty of Forestry, Bogor Agricultural Institute (IPB) in 2013. Experienced in a
wide range of related surveys of Plant Diversity. Had joined in Independent Research Team
Megalithic Sites Mount Padang part of the diversity of plants in 2013. Once a Post-Doctoral
Research Assistant on the calculation of the biomass plant cooperation between Leeds
University with the Borneo Orangutan Survival (BOS) in 2014. In this team, responsible as
Plant Identification and Above Ground Biomass.

Yudha Utama; graduated from the Department of Forest Management, Faculty of Forestry,
Bogor Agricultural Institute (IPB) in 2013, with areas of expertise calculation and modeling
Forest Carbon Savings. Is currently completing a Master of Education Program, Postgraduate
in Management Sciences Forest, Bogor Agricultural Institute (IPB). Since college until now
active in the field of activities as a field surveyor at Aksenta. In the team, responsible as
Inventory Data Plant High and Low.

Aulia Bahadori Mukti; completing his undergraduate education at the Department of Land
and Regional Development, Bogor Agricultural University (IPB). Starting his career as an
expert in the soils Survey to Suitability studies for Agricultural and Plantation along the Bogor
Agricultural Institute (IPB). Since the 2010 studies peatland conservation and identification
of areas of high conservation value (HCV) in the field of environmental services and GIS in
industrial forest plantations (HTI) and oil palm plantations. In this team, responsible as Soil
Identification and Below Ground Biomass.

1.2 Methods and procedures used for conducting carbon stock and GHG assessments
1.2.1 Methods and procedures carbon stock assessment
Stages of activity measurement and mapping carbon stocks in the concession area
of PT. PUL grouped into four stages, namely (i) a desk study, (ii) field surveys,
(iii) laboratory analysis and (iv) data analysis, mapping and reporting. These
stages are composed of a series of activities as presented in Figure 1

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 Figure 1. Stages of activity measurement and mapping carbon stocks in the concession
area of PT. PUL, 2015, Kab. Mahakam Hulu dan Kutai Barat, Kalimantan Timur.

1.2.2 Methods and procedures GHG assessment

Net GHG emissions are calculated by adding the emissions released during land
clearing, crop production and crop processing, and subtracting from these emissions
the sequestration of carbon in the standing crop and in any conservation areas. Stages
of activity measurement and mapping GHG assessment in the concession area of PT.
PUL as system boundary for the greenhouse gas calculation in Palm GHG. GHG
Calculation stages are divided into input, output agricultural and mill.
This emission sources included in the calculator are :
i) Land clearing;
ii) Manufacture of fertilisers and transport to the plantation;
iii) Nitrous oxide and carbon dioxide resulting from the field application of
fertilisers and mill by-products and other organic sources such as palm
litter;
iv) Fossil fuel used in the field (mainly for harvesting and collection of FFB);

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 v) Fossil fuel used at the mill;
vi) Methane produced from palm oil mill effluent (POME); and
vii) Carbon dioxide and nitrous oxide generated by the cultivation of peat
soils.
In addition, the following GHG fixation and credits are considered:
i) Carbon dioxide fixed by oil palm trees, ground cover and carbon
sequestered in plantation litter (see crop sequestration, below);
ii) Carbon dioxide fixed by biomass in conservation areas;
iii) GHG emissions avoided by the selling of mill energy by-products (e.g.
electricity sold to the grid; palm kernel shell sold to industrial furnaces).

Figure.2. System Boundary of Palm GHG

1.3 Responsible team for developing mitigation plan

Monitoring management of GHG emission of PT. PUL in region base, controled by Plantation

Head PT. PUL (PH) along with relevant functional departments. Estate planning process

synergize with program planning and management of Carbon Stock and GHG Assessment. The

department which involved in management plan and implementation are figured below.

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2. Summary of Carbon Stock Assessment
2.1 Location Map and Landscape
1. Location Map

Figure 3. Location Map of PT. PUL

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PT. Putra Utama Lestari (PT. PUL) is located in Mamahak Tebo Village, Long hubung Sub
District, Mahakam Hulu and Kutai Barat District, East Kalimantan Province, which has 3 block
operational areas with Land permit from Kutai Barat Regent No. 525.29/K.1049/2012 dated
30 November 2012, for 17.000 ha area.

PT PUL areal is in conjuction with some villages which includes Blok A (Klumpang Estate 1
and 2) located in Kampong (identic with village) Mamahak Teboq, Sirau and Lutan,
Longhubung Subdistrict, Mahakam Hulu District. Blok B (Beribo Estate 1 and 2) located in
Linggang Marimun, Muara Kalaq, Kelumpang, and Merayaq Village. Blok C (Kelumpang Estate
2) located in Gemuruh, Sakaq Tada and Sakaq Toloq Village. Block B and C are located in Mook
Manaart Bulatn Sub District, Kutai Barat District, East Kalimantan Province.

Block A location can reached directly by road from Melak during 4 hours by car or reached by
road towards Tering then proceed though Mahakam River during 3 hours. Block B can
reached by road crossing Mahakam River using ponton in less than a hour away. Block C is
can reached at less than half an hour crossing the Mahakam River. Currently, defections
bridge which connects Melak and Mook Manaart Bulatn Sub District unfinished and
scheduled to be completed in 2014. The road conditions is very good with hotmix asphalt all
the way up to the Tering. After Tering road towards Datah Bilang in Long Hubung sub District
with asphalt road, but in conditions part of road are poorly.

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2. Landscape Map

Figure 4. Landscape Map presence protected forest and conservation forest around PT. PUL

Based on review of document/ report/ existing/ maps and field observation indicate the around
concession PT. PUL there is no area of protected forest and conservation area.

3. Area of new planting and time plan for new planting

PT. PUL has planned land use on the total land permit area of 17.000 ha is divided for Block A
area of 6.755 ha, Block B area of 8.024 ha and Block C area of 2.221 ha. Total area land permit
used for building nucleus plantation area of 7.797 ha, smallholder area of 1.559 ha, conservation/
HCV area of 5.128 ha and for employee housing, mill and road area of 2.516 ha.

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Figure 5 . Area of New Planting PT. PUL

2.2 Land Cover Stratification

Implementation of carbon stock assessment in the concession area of PT PUL using methods
that have been scientifically recognized and guidelines are based on international standards
(IPCC), the RSPO and national (SNI). Footage plot consists of 4 strata of vegetation, namely HS
(secondary forest), BT (old shrub), BM (young shrub), LT (Open Land) and BA (water
body). The amount of carbon in the scale of this plot into a parameter extrapolation
(Upscaling) to map the distribution of spare carbon on a scale concession area of PT PUL,
mainly sourced from biomass.

Extrapolation carbon stocks for concession area of PT PUL use the resulting equation
of correlation between the value of the biomass AGB in each plot with the data spectral
radiance Band 6 derived from extrapolation data Landsat satellite 8. The results are
then converted into the value of the biomass carbon stock and its distribution
mapped. As a base mapping is the classification of biomass carbon stocks are also to
describe the condition of land cover. Classification of biomass carbon stocks divides
the study area of PT. PUL into five classes, namely:

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 BC-1 : Biomassa carbon stock 0-20 ton-C/ha
BC-2 : Biomassa carbon stock 20-40 ton-C/ha
BC-3 : Biomassa carbon stock 40-60 ton-C/ha
BC-4 : Biomassa carbon stock 60-80 ton-C/ha
BC-5 : Biomassa carbon stock 80-100 ton-C/ha

Table 1 shows land cover stratification in concession PT. PUL on 9 June 2015. Condition land
cover stratification divides six strata, namely HS (secondary forest), BT (old shrub) and BM
(young shrub), SM (Bush), LT (Open Land) and BA (water body). Dominant strata in secondary
forest (45.8%). Only a small portion in the form of strata Shrubs (5.04%) and open land (4.1%).
Based on the status of the land in the study area are production forest (approximately 57.6%)
and conservation areas (35.5%). In this production forest land, strata land cover is predominantly
secondary forest and old shrub. While in the conservation area, dominant land cover strata are
secondary forests
Table 1. Land cover classification in concession PT PUL , 2015

Grand
No Strata Ecosystem Block A Block B Block C
Total
1 HS (Secondary Forest) 2.050,10 2.394,99 895,89 5.340,99
2 BT (Old Shrub) 3.001,80 2.719,40 502,11 6.223,32
3 BM (Young Shrub) 1.611,41 2.427,15 767,46 4.806,02
4 SM (Bush) 20,15 67,46 34,70 122,31
5 LT (Open Land) 45,02 280,23 22,86 348,10
6 BA (water body) 26,21 141,36 - 167,58
Jumlah 6.754,69 8.030,60 2.223,03 17.008,31

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Table 2 shows a summary of biomass (AGB and BGB) in the secondary forest plots an average
smaller when compared to the default value Palm GHG (Disturbed forest: 128 ton / ha, Shrubland:
46 ton / ha). The average carbon stock in the Secondary Forest in PT PUL is 29.57 ton-C / ha, an
Old Shrub is 33.91 ton-C / ha, a Young Shrubs is 21.93 ton-C / ha and land cover Bush have 11.34
tons C / ha. This value is the basis for mapping the carbon stocks for the whole area of the study
area within the concession area of PT. PUL.

The amount of biomass carbon reserves in the concession area of PT PUL is 414.69 kilo tons-C
with an average of broad unity is 25.55 Ton-C / ha. Distribution of carbon stocks stored in the
concession area of PT. PUL, the largest in the range of more than 60 tons C / ha (BC2), which is
about 321.82 kilo tons-C.
Mapping results indicate there are areas with biomass carbon stocks greater than 60 ton-C / ha
area of 984,96 ha. At this time the area has a forest cover of secondary and old shrub that most of
the HCV area, dry and riparian streams.

Table 2. Total carbon stock and classifications for each land cover type in concession PT PUL
2015
Carbon Stock (Kilo Ton-C) Average
Strata Area (ha)
BC1 BC2 BC3 BC4 Total (Ton-C/ha)
HS 7.98 104.66 11.93 0.00 124,57 4,353.12 29.57
BT 0.00 79.91 20.62 0.00 100.53 2,964.24 33.91
BM 45.11 135.32 0.00 0.00 180.43 8,228.21 21.93
SM 5.57 2.28 1.23 0.43 9.58 838.44 11.34
Total 58.66 321.82 33.78 0.43 414,69 16,231.45 25.55

2.3 Map and description of significant carbon stocks in concession PT. PUL
The amount of carbon stock mapping of all the carbon source for the entire area PT PUL is
2448.70 kilo ton - C with an average of broad unity is 90.55 tons C / ha . The amount of carbon
stocks from the ground, which is 82.52 % (119.42 ton- C / ha). While the AGB is was 13.66 %
(20.57 ton - C / ha), BGB 3.31% (4.98 tonC / ha), nekromass wood / dead trees and litter 0.51%
(0.77 tons C / ha). Large soil carbon stocks is sourced from land that has associations Fluvaquents
soil type ; Tropaquents ; Tropohemist and associations Tropohemist ; Troposaprist ; Tropaquents

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Table 3. Summary carbon stock of 2015 in concession PT. PUL

Carbon Stock (Kilo Ton-C) Average

Carbon Source
BC1 BC2 BC3 BC4 BC5 BC6 Total (ton-C/ha)
Above-ground
biomass 45.88 260.03 27.60 0.35 - - 333.86 20.57
Below-ground
biomass 12.78 61.79 6.17 0.08 - - 80.82 4.98
Necromass 2.20 9.43 0.89 0.01 - - 12.53 0.77
Soil Carbon 182.22 812.33 47.78 0.18 1,469.72 150.86
Total (kilo ton-C) 243.08 1,143.58 82.44 0.62 - - 2,448.70
90.55
Area (ha) 4,221.63 11,228.38 774.81 6.57 - - 16,231.45

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Figure 4. Map of the distribution of carbon stocks in concession PT. PUL

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3. Summary of GHG Emissions
3.1 Description of all areas of significant sources of GHG emisions and sequestration
related to the proposed development

This emission sources included in the calculation are:

a. Land clearing;
b. Manufacture of fertilisers and transport to the plantation;
c. Nitrous oxide and carbon dioxide resulting from the field application of fertilisers and
mill by-products and other organic sources such as palm litter;
d. Fossil fuel used in the field (mainly for harvesting and collection of FFB);
e. Fossil fuel used at the mill ;
f. Methane produced from palm oil mill effluent (POME); and
g. Carbon dioxide and nitrous oxide generated by the cultivation of peat soils.

In addition, the following GHG fixation and credits are considered:

h. Carbon dioxide fixed by oil palm trees, ground cover and carbon sequestered in
plantation litter (see crop sequestration, below);
i. Carbon dioxide fixed by biomass in conservation areas;
j. GHG emissions avoided by the selling of mill energy by-products (e.g. electricity sold to
the grid; palm kernel shell sold to industrial furnaces).

Items that are not included in the budget are the nursery stage, pesticide treatments, fuel
used for land clearing, emissions embedded in infrastructures and machines, and the
sequestration of carbon in palm products and by-products

4. References
a. Analisis Mengenai Dampak Assessment (AMDAL) authorized by Bupati Kutai Barat date on
November 20, 2013 No. SK 666.5/K.1825/2013.
b. High Conservation Value Assessment (HCVA) report conducted of PT. Gagas Dinamiga
Aksenta date on February 2014
c. Land Use Change (LUC) report conducted of PT. Gagas Dinamiga Aksenta date on Juni
2015
d. Carbon Stock Assessment (CSA) report conducted of PT. Gagas Dinamiga Aksenta date on
October 2015

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5. Summary of Management and Mitigation Plans (Carbon Stocks and GHG Emissions)
5.1 Plan of the new development which indicates the carbon stock and presence of peat
soil.
No peat soil on PT PUL concesion area. New development of PT PUL will be set up for 5 years,
from 2016 – 2019. For minimize GHG emission from land clearing, the new development plan
will be starting at land cover which have a low carbon stock.

5.2 The results of scenario testing showing GHG emissions

a. Table 4. GHG Emission from land clearing on 2014 – 2015

GHG
Year of Carbon Stock Emission
Land Cover Block Acreage
planting (ton C/ Ha) (ton C/
year
1. Secondary forest A 373.98 29.57 442.34
2. Old Shrubs A 613.93 33.91 832.74
2015
3. Young Shrubs A 223.71 21.93 196.23
5. Open Land A 4.43 - -
Sub Total 1,216.05 1,111.70
1. Old Shrubs A 15.65 33.91 21.23
2014
2. Young Shrubs A 14.40 21.93 12.63
Sub Total 30.05 20.81
TOTAL 1,246.10 1,132.51
Reff: CSA report conducted of PT. Gagas Dinamiga Aksenta date on October 2015
= 4.43 t CO2 e/year/ha

b. GHG Emission from fertilizer usage and N2O on 2015

= 11.22 t CO2 e/year/ha (Simplified Palm GHG C7.8 Usage-Aug 2015)

c. GHG Emission from fosil fuel on 2015

= 1.44 t CO2 e/year/ha (Simplified Palm GHG C7.8 Usage-Aug 2015)

d. GHG sequestration from palm oil 0n 2015

= - 8.43 ton CO2 e/year/Ha (Simplified Palm GHG C7.8 Usage-Aug 2015)

e. Net GHG emission PT PUL on 2015

= 8.66 ton CO2 e/year/Ha

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5.3 PT PUL Sscenario with relevant spatial map
Based on CSA studies conducted by PT Aksenta, then planting plan in PT PUL will be
prioritized in the area of open land, shrubs, and bushes.
New planting plan of PT PUL from 2016 – 2019 are presented in the table below.

Table 5. New Planting Plan of PT PUL on 2016 – 2019 and realized planting on 2014 – 2015

Potential Land Year Planting (Ha) TOTAL

(Ha) 2014 2015 2016 2017 2018 (Ha)

Core estate 31 999 1,470 2,500 2,797 7,797

Smallholders 0 218 282 500 559 1,559
Total 31 1,217 1,752 3,000 3,356 9,356

5.4 The Measurement taken to maintain and enhance carbon stocks within the new
development areas.
Several stages to carbon stock assessment and ghg assessment can be used to prepare a
management plan carbon stock conservation area and HCV are integrated with management
oil plan plantation, as follow:

i. Establish an important area for reserve high carbon sourced from biomass equal to the
average value of carbon palm oil.
Results of previous studies show that the average value of carbon stocks of palm oil in one
cycle is 60 ton - C/ha . Within the area concession of PT PUL there is an area of 984.96 ha
of biomass carbon stocks that have > 60 ton - C / ha. The area is spread to about 4,166
polygons with an area ranging from ± 0:02 ha to ± 300 ha. Polygon count, random
distribution, and the extent of variation will complicate management, resulting in the
establishment of important areas for carbon stocks to choose areas with significant broad
and integrated with other conservation areas. In addition, the indicated area has reserves
of carbon > 60 ton/ha is the area of shrubs. In some locations, such as in Block B and C in
particular, the area adjacent to the swamp Secondary Forest Freshwater whose condition
is always flooded all the time.

ii. Integrating the carbon stock areas with HCV area

Locations that have been assessed as the areal Areal HCV in Permission location PT PUL
Mostly have a reserve of carbon > 60 ton - C / ha. The area of HCV in Areal Carbon Stock
Assessment Report of PT Putra Utama Lestari is 984.96 ha. These areas can be defined as

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 the area with high carbon stock , although the amount is less than the area which has
biomass carbon stocks > 60 ton - C / ha . Proper management and natural succession into
areas with higher vegetation cover would increase reserves carbon in the HCV area.

iii. Determination of baseline carbon stocks and GHG mitigation measure

Baseline carbon stocks in the concession area of PT PUL is required to assess the success
of mitigation efforts GHG (P & C 7.8 3.6 RSPO and ISPO). GHG mitigation efforts will be
successful if the value is negative net emissions. which means the amount of carbon stocks
is greater than the emissions.
The net GHG emission value is the value of a dynamic where the calculation process is
carried out a comparison between the amount of emissions from activities such as
aquaculture farm management (fertilization), Land management (drainage of peatlands).
Transportation, garbage and waste as well as emissions from POME, Carbon stocks
themselves are also dynamic. Whose value can be increased or decreased. The addition of
carbon stocks was obtained from the results of photosynthesis (biomass increase) of
vegetation in accordance with the development and growth of plants. Both from the area
of cultivation and conservation area carbon. While the reduction in carbon stocks can
occur from land clearing activities (reduction of biomass) and aerobic decomposition.
Especially in peat and nekromass source.

In order to determine the success of mitigation of GHG emissions, the value of carbon
stocks can now be used as a baseline derived from AGB, BGB , nekromas and C - organic
soil. As a benchmark for successful management is the increase in carbon stocks derived
from biomass and soil. For the carbon stocks of nekromass can not be used as a benchmark,
because the value of the carbon stocks will be reduced in line with the process of
decomposition. However this decomposition process will also increase organic C in the
soil.

iv. Management to maintain and increase carbon stocks

Efforts to maintain and increase the amount of carbon stocks is equal to the effort to increase
the total amount of biomass and soil organic C. Some practical ways are as follows:
 Increase the density of vegetation in areas that are not open palm planting area. For
example in residential areas in the garden, greening along the open road.
 Increase the density of vegetation in areas that have been designated as HCV area

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  Implement best practice so that the plantation cultivation of oil palm growth and
development can take place with the maximum and high biomass yield per plant
organs.
 Applying fertilizer application that can increase soil organic C content. For example
with the application of organic manure and compost.
 Implementing rorak applications in the area of mineral soil or bumpy areas that can be
filled with litter or organic waste from oil palm plantations, thus increasing soil organic
C.
 Preventing any form of fires in all types of strata / land cover.
 Perform mitigation of illegal logging in the area of secondary forest, especially in the
area defined as high carbon stocks.

5.5 GHG Emissions Mitigation Plan of PT PUL

The mitigation plan are associated with oil palm cultivation & processing in the new
development of plantation and mill operation.
Land clearing for plantations and construction of the plant (Mill) will be prioritized in areas
with low carbon stocks. The efforts to minimize GHG emissions, among others by optimizing
the utilization of mill byproducts (shell, fiber, and a empty bunch), the efficient use of fuel
through the engine maintenance and selection of technology which more efficient fuel usage,
an accurate fertilizer recommendations, maximize the use of biological agents for pest
control, etc. Methane capture will be an option of mitigation GHG emission from mill.

5.6 The Plan for monitoring the implementation of selected scenario for new
development including measures for enhancing carbon stock and minimising GHG
emissions
i. Monitoring and Evaluation of the conservation of carbon stocks (Monev)

In order to determine the successful management of carbon stocks and GHG mitigation , it
is necessary to the efforts of monitoring and periodic evaluation . Related to the results of
this study, the efforts of monitoring and evaluation can be carried out as follows :

 Establishment of permanent plots vegetation analysis in the conservation area carbon

or HCV (areas with carbon stock values > 60 ton C / ha ) and in the areas planted with
oil palm. Number of permanent plots is proportional to the level and extent of land
cover

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 Perform analysis of vegetation in each of the permanent plots periodically ( eg, every
6-12 months ) to determine the value of biomass and its nekromassa .
 Creating a recapitulation of the biomass is harvested when the plant oil palm has
produced
 To measure the content of soil organic C regularly in the permanent plots that have
been established .
 Perform estimation and calculation of carbon stock every year based on the results of
the above measurements .
 Creating a carbon balance every year, so that can know the value of net GHG
emissions .
 Evaluate any form of management based on the value of benchmarks and targets set (
total AGB and soil carbon )

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