Audit Report AGGREGATE CONCRETE M_2022A.pptx

audit report

1. 1 CLOSING MEETING ISO INTERNAL AUDIT ACM Group, 14/07/2022

2. Audit Realization ISO 9001, ISO 14001 internal audit has been conducted as a schedule d.

3. Audit findings categorization Positive findings Data / information were found that comply with requirements and/or good in practice. Observation for improvements Data / information those are found or analyzed have potency for generating non-conformance or there is detected or observed potency for performance improvement in quality, services and environment. Non conformance A deviation of a specified requirement ( ISO/API standard requirements, company requirements , legal, and other related requirements) . Lapse in the system that has effect on the quality of the product/services and environment performance .

4. Previous Finding No Description Identification Proposed Resolution Completion Status QNC4360 Some management review inputs and outputs were not included yet in the management review agenda (MR ACM) 05-Aug-2021 31-Aug-2021 21-Dec-2021 Resolved QNC4361 Verification of purchased aggregates was not conducted properly ( Jeladri Qry ) 05-Aug-2021 31-Aug-2021 18-Aug-2021 Resolved QNC4362 Corrective action has not been consistently taken when nonconformities occurs, e.g.: Sieve analysis result were out of standard ( Jeladri Qry ) 05-Aug-2021 31-Aug-2021 02-Sep-2021 Resolved ENC4269 Some applicable environmental and other regulations have not been included in the evaluation of compliance obligations (BPs, Jeladri & Maloko Qry ) 05-Aug-2021 31-Aug-2021 12-Apr-2022 Resolved Internal Audit

5. Previous Finding External Audit No Description Identification Proposed Resolution Completion Status ENC4270 SGS - It was found some incompliance to the environmental operational control related to the batching plant operations (RMX Ops) BP Pandaan Bag filter not yet treat as hazardous waste as required. BP Ancol monitoring air ambient parameter dust (TSP) standard : 230 µ q/NM3 actual : 264 µ q/NM3 dated 21 March 2021 however NCAR not yet issued. BP Serpong condition of settling pond was flooding and this flooding reached area diesel tank. BP Bandung and BP Serpong IPLC waste domestic waste water was not available. 16-Sep-2021 31-Oct-2021 June 2022 Resolved

6. Positive Finding Concrete Technology & QA/QC Product development of low CO2 Concrete ( Locoocrete ) already applied as commercial products. The laboratory has participated in the proficiency test for concrete and aggregate materials held by SIG in 2021 with good results.

7. Positive Finding Customer Care Useful application for Customer Complaint dash board, for easier complaint tracking & follow up

8. Positive Finding National Sales Useful application for Concrete Sales dash board, for easier tracking sales & follow up

9. Positive Finding Quarry Maloko Control of weighbridge validity have been carried out properly, e.g. calibration 2x/year and internal verification 2x/year. BP Pulogadung It was observed that greening area in the batching plant has been improved.

10. Positive Finding Jeladri Quarry Top soil is stockpiled in soil bank to be used for reclamation activities.

11. Nonconformity Findings Nonconformity Finding Risk/Implication Recommendation and comments Responsible 1. It was found that hazardous material and hazardous waste handling in some areas has not been controlled properly Priority: (X) High ( ) Low The organization shall establish, implement, control and maintain the processes needed to meet environmental management system requirements. It was found that hazardous material and hazardous waste handling in several areas has not been conducted as required by the regulations, e.g.: BP Karawang Darachem admixture in several IBCs are stored in the open areas without roofs, bund wall, and symbols. There is no B3 symbol (flammable) in the fuel tank storage. BP Sentul and BP Yogyakarta LB3 has been stored for more than 360 days, e.g. Last delivery of LB3 at BP Sentul on 21 Jan 2021, and BP Yogyakarta on Des 2018 . Continue.. Incompliance to the obligations Environment pollution/ land contamination Recommendation : To provide proper symbol and label at hazardous material storage or stored at dedicated area To consistently stored hazardous waste in the appropriate storage and refer to permit. To deliver LB3 no more than the time limit. Management comment : [ Agreed /Not agreed ]   Responsible : BP Karawang , Kembangan , Sentul , Balaraja Concrete Technology & QA/QC   Due date : [ dd /mm/ yyyy ] Reference: ISO 14001:2015 clause 6.1.3 compliance obligation PP 74/2001 Bahan B3 PermenLH No 14/2013 Simbol B3 PermenLHK No. P.06/2021 ttg Pengelolaan Limbah B3

12. Nonconformity Findings Nonconformity Finding Risk/Implication Recommendation and comments Responsible 1. It was found that hazardous material and hazardous waste handling in some areas has not been controlled properly Priority: (X) High ( ) Low Continue… BP Kembangan LB3 was stored without any permit, e.g. used filters, used spill kit, and rags. Concrete Technology & QA/QC Lab. Pulogadung Several containers of admixture in the laboratory have not been identified and have no B3 symbols. BP Balaraja B3 (admixture) and B3 waste (used oil) that used for sample testing at BP Balaraja without bund walls, symbols. Admixture flobas in BP Balaraja was stored in the open area without roof, bundwall , symbol. Used bag cloth was not handled as LB3. Incompliance to the obligations Environment pollution/ land contamination Recommendation : To provide proper symbol and label at hazardous material storage or stored at dedicated area To consistently stored hazardous waste in the appropriate storage and refer to permit. To deliver LB3 no more than the time limit. Management comment : [ Agreed /Not agreed ]   Responsible : BP Karawang , Kembangan , Sentul , Balaraja Concrete Technology & QA/QC   Due date : [ dd /mm/ yyyy ] Reference: ISO 14001:2015 clause 6.1.3 compliance obligation PP 74/2001 Bahan B3 PermenLH No 14/2013 Simbol B3 PermenLHK No. P.06/2021 ttg Pengelolaan Limbah B3

13. NC.1 – admixture and fuel tank storage in BP Karawang

14. 14 NC.1 - LB3 in BP Kembangan NC.1 – admixture in Laboratory

15. 15 NC.1 – Handling of B3 and LB3 in BP Balaraja

16. Nonconformity Findings Nonconformity Finding Risk/Implication Recommendation and comments Responsible 2. Contracts and performance evaluations of external parties have not been maintained properly Priority: (X) High ( ) Low The organization shall determine and apply criteria for the evaluation, selection, monitoring of performance, and re evaluation of external providers, based on their ability. There were found that several incompliance regarding to external provider management, e.g.: Contract for PT RAN ( Restu Agung Narogong ) has expired since april 2022. Contract/Outlined Agreement of PT PDT ( Pancaran Darat Transport) has expired since Dec 2021, and vendor performance evaluation can not be shown. Contract for PT Grace valid until 2020, and vendor performance evaluation can not be shown. Contract for PT Calvari , PT WNB, PT Geosindo and their vendor performance evaluations can not be shown. Evaluation for PT Alam Persada was not aligned with the KPIs in the contract. No vendor evaluation for PT Sinar Jembar Perkasa. Affect company / organization performance Incompetent contractor personnel Recommendation : Speed ​​up the contract renewal process. Need to align vendor evaluation parameters according to the KPIs in the contract. Improve filing system of contract documents and evaluation documents. Management comment : [ Agreed /Not agreed ]   Responsible : Procurement RMX Operation   Due date : [ dd /mm/ yyyy ] Reference: ISO 9001:2015 clause 8.4 Control of externally provided processes, products and services. ISO 9001:2015 clause 7.5 Documented information.

17. Nonconformity Findings Nonconformity Finding Risk/Implication Recommendation and comments Responsible 3. Calibration/verification for measuring and monitoring equipment was not performed consistently Priority: (X) High ( ) Low Validity of measurement results, measuring equipment shall be calibrated or verified, or both, at specified intervals, or prior to use. It was found that calibration/verification for several measuring and monitoring equipment was not performed consistently, e.g.: The measuring equipment that used for analysis have not been calibrated/verified, such as: thermometers, vicat tool, ovens, sieves, (almost all Batching Plant) The caliper used for mold verification has not been calibrated (BP Karawang , BP Sentul ) Calibration result from the external party have not been verified (BP Karawang , BP Sentul ). There is no calibration schedule available at Batching Plant (BP Sentul ). It was observed that the calibration for the oven was not carried out within the test temperature range (Concrete Tech QA/QC ). Calibration report for electronic balance Sonic and Scout Pro are not complete (Concrete Tech QA/QC ). Invalid result of measuring equipment Non conformity product Recommendation : To perform calibration/verification as a defined schedule. To perform calibration properly based on the applicable standard method. Management comment : [ Agreed /Not agreed ]   Responsible : Concrete Technology QA/QC RMX Operation   Due date : [ dd /mm/ yyyy ] Reference: - ISO 9001:2015 clause 7.1.5.2 Measurement traceability

18. Nonconformity Findings Nonconformity Finding Risk/Implication Recommendation and comments Responsible 3. Calibration/verification for measuring and monitoring equipment was not performed consistently Priority: (X) High ( ) Low Continue.. There is no calibration/verification for IDO fuel dispenser (BP Tanjungsari ). There is no regular calibration for weigh bridge. Last calibration is 18 July 2020 (BP Tanjungsari and BP Gedangan ). Limit scale Nagata 30 kg, material scale 10kg (BP Serpong ). Earth tester for grounding test at BPs – RMX Maintenance Area Invalid result of measuring equipment Non conformity product Recommendation : To perform calibration/verification as a defined schedule. To perform calibration properly based on the applicable standard method. Management comment : [ Agreed /Not agreed ]   Responsible : Concrete Technology QA/QC RMX Operation   Due date : [ dd /mm/ yyyy ] Reference: - ISO 9001:2015 clause 7.1.5.2 Measurement traceability

19. Nonconformity Findings Nonconformity Finding Risk/Implication Recommendation and comments Responsible 4. It was observed that waste water was not manage properly in accordance with the regulation Priority: (X) High ( ) Low The organization shall manage all waste water properly and in accordance with applicable regulations. It was observed that contaminated water has not been properly controlled and managed such as: Contaminated water around HE workshop is drained to settling pond without any control and treatment Outlet water of SWTP is mixed with contaminated water in the settling pond that will be used as process water, however it has potential to overflow in the rainy season. HE workshop does not have proper oil separator as management of contaminated water. Breach the legal Environmental pollution Recommendation : To control and manage contaminated water To separate controlled water from SWTP with uncontrolled water To build proper oil separator in HE workshop Management comment : [ Agreed /Not agreed ]   Responsible : Quarry Maloko   Due date : [ dd /mm/ yyyy ] Reference: ISO 14001:2015 clause 6.1.3 Compliance obligation and clause 8.1 Operational planning and control Permen LHK No. 68 tahun 2016 Permen LH No. 5 tahun 2014

20. 20 Water management in Maloko quarry: rain water & contaminated water is drained to separator without any treatment and control then mixed with controlled water from SWTP at compliance point and go to settling pond

21. No Observation Finding Reference Related Function 1 It is strongly recommended to take immediate action regarding to compliance obligations, e.g.: It was observed that the MoU with licensed LB3 transporter ( Primanru ) has already terminated since 8 October 2021. It is highly recommended to prolong or make new MoU with the licensed hazardous waste transporter and utilization company. The emission test results for Wheel Loader LW30KN at BP Serpong for Semester-1 2022 are above the threshold value, 64,2% opacity > 40% BM. Air ambient monitoring (down win) result in in Semester-1 2022 at BP Balaraja are above the threshold value. Report of ground water utilization at BP Serpong has not been submitted to Dinas Energi dan SDM Provinsi Banten . Fuel tank ( tangki timbun ) permit in BP Serpong has expired since November 2021. SIO for WL operator in BP Pulogadung has expired since 30 Dec 2021. Fly ash utilization permit has expired for BP Balaraja and BP Serpong . ISO 14001:2015 clause 6.1.3 Compliance obligations PermenLHK No P.19/2021 Limbah Non B3 ACM Procurement BP Serpong BP Balaraja BP Pulogadung 2 It is strongly recommended to take into account the significant aspects, associated compliance obligations, and considering risks and opportunities in setting environmental objectives (OTP) in Batching Plant, e.g. expired permits issue, improve drainage system, provide storage of hazardous materials, etc. ISO 14001:2015 clause 6.2.1 Environmental objectives RMX Operation – Batching Plants

22. No Observation Finding Reference Related Function 3 Attention should be given to ensure that the resource needed according to product delivery is met in order to achieve conformity to the product requirements , e.g. the action plan of Backlog Report related to kendala kurang TM which caused the volume realization were below the order book target as of June 2022. Moreover it was found that some achievement for TM availability from Jan – Jun 2022 were under the target 90 %: It was observed average TM availability per Transporter for Jan-June 2022 are: MOB average availability : 78% MIRA average availability : 83% PLI average availability : 81% ISO 9001:2015 clause 8.1 Operational planning and control National Sales Logistic Service Area Jan Feb Mar Apr May Jun Banten 90% 89% 92% 66% 87% 79% Jakarta 81% 89% 83% 54% 70% 70% Jawa Barat 88% 93% 90% 62% 88% 73%

23. 23 Obs. 1 – Action plan Backlog Report

24. No Observation Finding Reference Related Function 4 It is recommended to develop training plan for ERT in Batching Plants and monitor the realization appropriately, e.g. fire training, basic life support training. It is also recommended to completion the drill schedule based on the identified emergency conditions in GL4086 that may occur at the relevant Batching Plant, e.g. flooding, earthquake. ISO 14001:2015 clause 8.2 Emergency preparedness and response GL4086 Prosedur Penanganan Gawat Darurat ACM ACM – HSE 5 TM Inspection has been conducted, however attention should be taken for some conditions, e.g.: BP Serpong – TM 1956 (PDT) TM police number is not visible (covered by sediment). The cleanliness of the truck needs to be improved. BP Pulogadung – TM B 9771 SIN (MIRA) TM inspection was not reflected the current conditions, e.g. police number is not visible, reverse light is off, left brake light is off, 5 tires are in bad conditions, ladder is broken. ISO 9001:2015 clause 7.1.3 Infrastructure RMX Operation BP Serpong

25. 25 Obs. 7 – TM conditions in BP Serpong Police number

26. 26 Obs. 7 – TM conditions in BP Pulogadung

27. 27 Obs. 7 – TM conditions in BP Pulogadung

28. No Observation Finding Reference Related Function 6 It is highly recommended to manage environmental conditions to prevent potential pollution and achieve conformity products and services in the batching plant area, e.g. puddles in the BP Balaraja and BP Kembangan , waste water from WTP in the reservoir area. ISO 14001:2015 clause 6.1.2 Environmental aspects RMX Operations BP Balaraja BP Kembangan Office and stockpile area Reservoir and generator area

29. Reservoir in BP Kembangan

30. No Observation Finding Reference Related Function 7 Care should be taken to conduct vendor performance evaluation for aggregates transporter in Maloko quarry, e.g. PT. Tata Fajar Transtama , PT. Multi Karya Sentosa , PT. Tri Manggala Putra, PT. Grateful ISO 9001:2015 clause 8.4 Control of externally provided process, products and services Quarry Maloko – Dispatch 8 Some recommendation regarding to laboratory activities in Maloko quarry: It is recommended provide standard template to record the analysis result and sign off by the analyst and his superior. Corrective action for NC product has been applied in the template SF1003, however it is recommended to develop register for those NC and the verification of corrective action (section 3) could be performed by Quarry Manager. To perform calibration/verification for measuring caps ( gelas ukur ) and shakers (local and Germany) to ensure the validity of these equipment. ISO 9001:2015 clause 8.1 Operational planning and control ISO 9001:2015 clause 10.2 Nonconformity and corrective action ISO 9001:2015 clause 7.1.5.2 Measurement traceability Quarry Maloko – Laboratory 9 Some recommendation for Maloko warehouse activities: To update the placement of several goods in the SAP system according to actual conditions and tidy up several goods which placed on the floor. To provide drainage in the backyard of the warehouse to prevent the spare part damage due to rain water runoff. To provide B3 symbol in the oil/lubrication storage. ISO 9001:2015 clause 7.1.3 Infrastructure Quarry Maloko – Warehouse

31. Obs. 10 – Warehouse in Maloko Quarry Need to tidy up the placement Need to add drainage Need to add B3 symbol

32. No Observation Finding Reference Related Function 10 Since lubrication and hydraulic oil replacement is conducted based on time based, it is recommended to develop the oil replacement schedule. During audit it was found that oil replacement for unit machine Gyratory B23 more than 1 year from the last replacement on 11 June 2021 due to oil filter spare part availability. ISO 9001:2015 clause 7.1.3 Infrastucture Quarry Maloko – Maintenance 11 It is recommended to change the bar chart type to a line chart type according to trend of air quality measurement reports in the UKL-UPL report S-2, 2021. ISO 14001:2015 clause 9.1.2 Evaluation of compliance BP Kembangan 12 It is recommended to add KPI for personnel competency for contractors who perform analysis in the operational Lab. ISO 9001:2015 clause 7.2 Competence All Batching Plant Concrete Tech QA/QC 13 Product development related to the environment (CO2 emission reduction) need to be included in the environment objective targets program (OTP), e.g. some initiative product development such as Locoocrete or others. ISO 14001:2015 clause 6.2 Environmental objectives and planning to achieve them Concrete Tech QA/QC 14 It’ was found some hazardous waste report and administration record was not performed correctly, e.g.: Type and quantity of hazardous waste in BP Tanjung sari was not reported in the UKL-UPL 1 st semester that actually were produced and recorded in TPS logbook. The incoming LB3 is written as the outgoing LB3 at BP Gedangan . ISO 14001:2015 clause 8.1 Operational planning and control BP Tanjung Sari BP Gedangan

33. No Observation Finding Reference Related Function 15 It was found that internal plant calibration in BP Tanjungsari was not conducted as a scheduled (quarterly as stated in CGL1008), actually it was conducted on a semester basis. ISO 9001:2015 clause 7.1.5.2 Measurement traceability BP Tanjung Sari 16 It was observed that incoming inspection which recorded in LKPM was conducted every 4 days in BP Gedangan . It is not aligned with the CGL1008 that incoming material inspection should be conducted during the material receiving. It was also found that sampling for incoming material was not conducted for the next 5 trucks and so on. e.g : LPKM for incoming material dated 9 April was available, but 10 – 13 April was not conducted , in 14 April LKPM was available ISO 9001:2015 clause 8.1 Operational planning & control BP Gedangan 17 It was found that Jeladry quarry customer complaint was not recorded in the customer complaint database. Record was keep individually in Jeladry ISO 9001:2015 clause 8.2.1 Customer communication Jeladry Quarry 18 Some improvement is needed in the hazardous waste storage: House keeping and waste management in hazardous waste storage 1 (solid hazardous waste) Do not store other waste other than its designation. To provide SOP and spill kit in the hazardous waste storage ISO 14001:2015 clause 6.1.3 Compliance obligation 8.1 Operational planning and control Permen LHK No.6/2021 Maloko quarry

34. 34 Condition of hazardous waste storage 1 (solid hazardous waste) in Maloko : used oil filters are put in a large steel box, hazardous waste management is not neat and non hazardous waste is placed in storage

35. No Observation Finding Reference Related Function 19 It is recommended to include some related clausal on regulation and obligation in compliance evaluation, such as: Geotek and hydrogeologi study, reclamation and re-vegetation ISO 14001:2015 clause 9.1.2 Evaluation of compliance Maloko quarry 20 Reclamation and re-vegetation are well done in IUP 25 ha however it is not in accordance with requirement for spacing and species as stated in the document. It is recommended to adjust spacing and species according to the reclamation planning document and install information sign at cajuput area (9.35 ha) ISO 14001:2015 clause 6.1.3 Compliance obligation 8.1 Operational planning and control Jealdri quarry 21 Due to the failure of estimated operation in IUP 53.2 ha YTD achievement of production is below the target. It is recommended to set achievable targets taking into account operational condition ISO 9001:2015 clause 6.2 Quality objectives and planning to achieve them Jeladri quarry