Introductory Letter

To confirm our conversation/correspondence, this introduction letter is to give you some

background information to a SMETA Audit (Sedex Members Ethical Trade Audit).

A SMETA is a widely used and accepted audit methodology and report format. It has 3
elements:

 A common Best Practice Guidance on conducting ethical trade audits

 A common audit report format
 A common corrective action plan format.

These are available to both Sedex members and non-members on the public section of the
Sedex website: http://www.sedexglobal.com/ethical-audits/smeta/

SMETA is designed to encompass multiple customer requirements and thus reduce

duplication of effort in ethical trade auditing. Therefore if your site has had a SMETA audit in
the last 12 months, it is possible your customers will not require another audit immediately. If
this is the case, we recommend that you contact your customers to discuss whether a new
SMETA audit is necessary.

If you do not have a recent audit of your site, we encourage you to investigate whether all of
your customers are prepared to accept a SMETA audit. You may find that one audit will
satisfy all.

If you find that you wish to proceed with a SMETA audit, the enclosed information should
help you prepare.

Key People to be available on the day

It is normal that the most appropriate person to be our main contact is the Production
Manager, Health & Safety Manager, or HR manager. These people, wherever possible,
should attend the opening meeting along with any union and/or worker representatives, and
these same people should attend the closing meeting at the end of the audit.

Audit Scope

Full details of the audit methodology and the way in which the findings are reported are
available publicly at http://www.sedexglobal.com/ethical-audits/smeta/.

The audit will involve an assessment of your production site including any accommodation
provided against the following standards:

 The national and local laws in your country of operation,

 Ethical Trading Initiative (ETI) Base Code, covering the nine topics of labour
standards and Health & Safety.

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 0A Universal Rights covering UNGP
0 Management systems and code implementation
1. Freely Chosen Employment
2. Freedom of Association
3. Safety and Hygienic Conditions
4. Child Labour
5. Wages and Benefits
6. Working Hours
7. Discrimination
8. Regular Employment
8A. Sub-Contracting and Homeworking
9. Harsh or Inhumane Treatment
10. Entitlement to Work
11. Environment
12. Business Practices (if SMETA 4 pillar audit)

If an issue is raised, and the local law differs from the ETI base code, the auditor will use the
standard which gives greater protection to the worker. Therefore an issue may be raised
against e.g. the ETI base code even if the local law permits the practice. * see 5 J. ‘Non-
Compliance Process and Sedex’ for more details.

Document Review

1. Employee Time record (it could be electronic time record, mechanical or hand writing)
2. Payroll Records – Timecards and payroll register for three pay periods. (Pay periods are selected
randomly by auditors based on the last 12 months). Please do not attempt to prepare a pay
period in advance for auditor review. Payslip (details of payment) is also required.
Severance payment sample (Contoh pembayaran pesangon)
3. Employee personnel record, usually consist of : Application Letter, Curriculum Vitae, ID Card
(copy), Passport size photo, latest grade of school certificate (copy), Health certificate.
4. Company business license
5. Tax Payer Number (NPWP)
6. Company Registration Number (TDP / NIB)
7. Domicile Letter (Ijin Domisili) if applicable+ IMB (Ijin Mendirikan Bangunan) + Building
Acceptance Certificate (Surat Laik Fungsi = SLF), Building inspection record
8. Export approval (MOU for Export) or Bonded Zone Permit
9. Company profile (usually explain about business line, maximum capacity per month, major
customer, contact person, production capacity, total sewing lines (for garment), etc)
10. Employee handbook (usually explain about working hour, payment system, factory
regulation/policy/labor law, union, hiring procedure, termination process, etc)
11. Applicable laws and regulations, policies and procedure (Child labor, wage & benefits, working
hours, Disciplinary, Health & Safety, Environment, Training, Discrimination and Harassment,
Discrimination and Harassment )
12. Government Inspection reports, e.g: sanitation, fire safety, structural safety, environmental
compliance, etc (if applicable)
13. Bipartite Organization Structure & report to Depnaker every 6 months
14. Labor Union (name, meeting, registration letter to Disnaker) – if applicable
15. Number of suggestion box, location and control system – if any
16. Minimum Wages Decree (SK UMK)
17. Number of employees for the last 3 months (production, non production, expatriate, male,
female, contract, permanent, seasonal employees)
18. Social Insurance certificate (BPJS) and payment slip
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19. Health Care Security (BPJS Kesehatan) and payment slip
20. “THR” Payment receipt
21. Leave list & leave payment receipt
22. Overtime Request Form (Surat Perintah Lembur)
23. Outsourcing (company business license, contract registration to Disnaker, report to Disnaker) – if
any
24. Health & Safety Training Record (evacuation training, fire drill, first aid training, chemical
handling training, waste handling training, PPE training)
25. Number of trained fire fighters
26. Safety Committee endorsement letter & report to Depnaker every 3 months
27. Annual medical check
28. Hyperkes certificate if any onsite clinic
29. Factory Lay out
30. Flow of Production process
31. Fire License
32. Fire evacuation plan lay out
33. Number of fire extinguisher, first aid kit box, fire alarm, emergency light, emergency exit door,
hydrant, sprinkler, smoke detector per area and also the inspection record
34. Needle control record – if applicable
35. Steam-boiler Permit & steam boiler operator certificate - if applicable
36. Electricity Permit (Ijin pemakaian instalasi listrik)
37. Lightning Conductor Permit (Ijin pemakaian instalasi penyalur petir)
38. Permit for water usage / extraction (SIPA = Surat Ijin Pemakaian Air Tanah) – if applicable
39. Motor diesel Permit (Ijin pemakaian diesel / genset) – if applicable
40. Compressor Permit (Ijin Kompresor) – if applicable
41. Lift / Forklift / Hoist Crane Permit & operator certificate – if applicable
42. Factory land certificate / size and dormitory size and how many employees stay in dormitory (if
any)
43. Canteen facility: total staff, staff medical examination, hygiene recommendation letter (Ijin
Layak hygiene) – if applicable
44. Drinking Water Analysis Report
45. Machinery List
46. Chemical List used in the facility
47. Occupational Accident Report
48. Number of toilets (male & female)
49. Production Main Labels (some) / sample of product
50. UKL (environmental management plan) /UPL (environmental monitoring plan) & report every 6
months, including applicable Air Quality Test, Noise level, Air emission Testing, Temperature OR
SPPLH (Surat Pernyataan Pengelolaan Lingkungan Hidup) for Industry Non UKL UPL
51. Liquid Waste Disposal Permit (Ijin Pembuangan Limbah Cair) – if applicable
52. Liquid Waste Testing (Testing Limbah Cair) – if applicable
53. Hazardaous Waste Storage Permit (Ijin Penyimpanan Limbah B3) – if applicable
54. Manifest of Hazardous Waste Disposal (Manifest pembuangan Limbah B3 terakhir) – if
applicable
55. Hazard identification and risk analysis
56. Emergency prepareness and response procedure
57. Supplier list
58. ETI Base Code socialization including Business Practice (anti bribery/ corruption) to the supplier.

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59. ETI Base Code socialization including Business Practice (anti bribery/ corruption) to the
employees.
60. Appointment letter for senior member of management who responsible for ETI Base Code and
Business Practice (anti bribery/ corruption)
61. Social compliance internal audit
62. Social compliance audit to supplier
63. Business Practice (anti bribery/ corruption) including reporting issue (if SMETA 4 pillar audit)
64. Procedure regarding land rights

Worker Interview (see document 5E attached for more detail)

It will be necessary to interview a cross section of workers, approx. 5- 10% of the workforce.
These interviews may be in groups or one to one. Management must not be present at
these, to safeguard the confidentiality of individuals, and where interpreters are necessary
there must be no links between the site and the interpreter to ensure total impartiality (see
document 5E – ‘Principles of Worker Interview Information for Sites’).

Impartiality by the Auditor (see document attached 4, for more detail)

As an additional support for good auditor conduct during an audit, auditors/audit companies
are making available their own code of conduct for auditors, which describes the need for
impartiality on behalf of the auditor. You are requested to sign this to confirm you have
received and understood the content.

Non-Compliance Process (see document attached 5J for more detail).

Where non-compliances are found we hope to agree both the corrective actions and the
timescales at the end of the audit (see document 5J – ‘Non-Compliance Process and
Sedex’), and you can familiarise yourself with the documentation at:
http://www.sedexglobal.com/ethical-audits/smeta/.

NEXT STEPS

If you are commissioning this audit at the request of a Sedex member we ask that you
register on Sedex as a B member and give our administrator access to upload the audit. Our
administrator can then access your details from your completed Supplier Audit
Questionnaire (SAQ). This will allow our administrator to use your SAQ details to complete
your Supplier details (see supplier Guidance Pack Stage 3 [Link]). This should be done
before the audit.

https://sedexadvance.sedexonline.com/sso/

You can inform us the “company code” and “site code” and we will initiate the audit for you

At the end of the audit we can upload both the CAP and the report onto Sedex so that your
clients (ones you have linked to on Sedex,) can review the report automatically.

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To help you register on Sedex, there are a number of guidance documents which will assist
the above processes (a) to (d).

 for Suppliers: http://info.sedexglobal.com/guidancepacks.html

 for Auditors: http://info.sedexglobal.com/auditorguidancepacks.html

With this letter please find attached a list of the documents we have included to give you
detailed information on the SMETA process.

Finally if you have any queries regarding this audit or any questions once you have read this
communication, please contact us for more information

We look forward to working with you.

The Audit Admin Team

3. Introductory Letter
3 male auditors will be assigned for this audit

Tentative Agenda
Day 1
09.30 Opening Meeting (normally attended by Production manager, H&S and
Environmental Manager, HR manager, Payroll manager). If management allow, a union
representative should be invited.

10.00 Site Tour with a Guide (time spent will depend on size of site)
Health and Safety Including Selection of a sample of employees to be interviewed in a mix
of group and single interviews.

12.00 Lunch

13.00 Conduct employees interviews including a union representative interview if present.

A quiet room not used just for disciplinary meetings should be chosen, preferably one that
employees are familiar with.

15.00 Documentation review. This includes employee handbooks, employee HR files,

payroll and time records for those chosen for interview, etc.

17:00 Auditor summarises corrective action report (CAP) for closing meeting

18:00 Closing meeting (normally attended by Production manager, H&S and Environmental
Manager, HR manager, Payroll manager). If management allow, a union representative
should be invited if management allow this.

18:30 Finish

Please note the times are only guide as we will work with the facility to ensure
production and breaks are not interrupted, if there are any concerns. Please contact
administration team if times need to be adjusted to suit working hours of site or if site
takes more than one hour to walk the perimeter and into each area on site.

3. Introductory Letter
CONFIRMATION FORM – SMETA AUDIT

To : Intertek Indonesia
Attn : Agustini
From : PT. INDOPLAS FOOTWEAR INDONESIA

Please complete and return via email or fax to: (62 21) 391 8340
AUDIT DATE: 13 February 2024
CONTACT: First Name Last Name:

FACTORY NAME

Doing Business As:

FACTORY
ADDRESS

COMMUNICATION Phone Number:

Fax Number
Email Address
Other

HOURS 1st Shift 2nd Shift 3rd Shift

NUMBER OF TOTAL Production Non Non production Manage

EMPLOYEES: employees production employees other ment
employees than office / admin
(office / (e.g. security,
Admin cleaning service,
Staff) driver, canteen staff,
1st Shift etc)
2nd Shift

3rd Shift

COMPENSATION:  Piece Rate  Hourly  Both

Note:
 If your facility has already been audited under the same audit program within the last 12 months
(excluding re audit or follow-up audits), please inform us IMMEDIATELY.
 If applicable and deemed necessary, please inform your vendor of this audit schedule
 If there are any changes to the facility name or address, please inform us IMMEDIATELY.
 Please advise Intertek in advance of any health and safety issues that the audit team should be aware of
(particularly if any additional Personal Protective Equipment (PPE) is required for the audit team)

3. Introductory Letter
Please sign and return this letter to (local Intertek contact and tel. No) as a confirmation of the above audit. Please inform
us should you wish to reschedule under any urgency circumstances.

If notice of cancellation or rescheduling is made prior to the committed audit date (or start date of the semi-announced
audit window), the indicated billing party will be responsible for the following audit fees and expenses:

 Within 2 Business Days: 100% of the audit fee plus expenses already incurred
 More than 2 and within 10 business days: 50% of the audit fee plus expenses already incurred
 More than 10 Business Days: Any incurred expenses

This is to acknowledge that we have read and understood the above, and to confirm that we
are available for this audit arrangement.
We agree that the report can be uploaded to SEDEX web.
We agree that the auditor can take photographs during the audit.

Facility Contact (Print name) Signature

Facility Contact (Print name) Signature

3. Introductory Letter