The implementation of SMK3 audit is something that needs to be done or even mandatory in some companies.
This allows the company to ensure the implementation of the K3 program or Occupational Safety and health.
To better understand what SMK3 audit is and its objectives and implementation, let's look at the explanation of the article below.
What is Smk3 Audit?
An SMK3 audit is a systematic and independent examination of whether set criteria are met, used to measure the results of activities that have been planned and carried out in implementing SMK3 in a company. This wording appears in Article 1 point 7 of Government Regulation Number 50 of 2012.
SMK3, or the Occupational Safety and Health Management System, is part of a company's overall management system for controlling risks related to work activities so that the workplace is safe, efficient, and productive.
The legal basis for this audit is Government Regulation Number 50 of 2012 on the Implementation of SMK3 and Minister of Manpower Regulation Number 26 of 2014 on the Conduct of SMK3 Implementation Assessments. From the audit results, a company can see how effectively SMK3 is running, how it performs operationally, and what improvements are needed.
What Is the Purpose of SMK3 Audit?
An SMK3 audit aims to measure how far the planned SMK3 is actually carried out, to ensure compliance with occupational safety and health provisions, to find gaps, and to serve as the basis for improvement and for assessing the level of SMK3 implementation.
In general, audit SMK3 is carried out to ascertain whether a company has implemented an occupational safety and health management system.
In occupational safety and health audit practice, the specific objectives commonly stated are as follows:
1. Assessment of potential hazards
Critically and systematically assess all potential hazards in the company's operating activities. The company's operational activities include employees, operational facilities, and management.
This allows the company to be reviewed in a structured manner to identify possible risks, so that prevention and necessary improvements can be made.
2. Examination of K3 management
Ensure that the management of K3 in the company is in accordance with government regulations, technical standards, applicable K3 standards, and policies set by the company's management.
This refers to the company's compliance with government rules and other provisions in implementing Occupational Health and safety.
3. Control of hazards
Determine steps to control potential hazards prior to disruption or loss.
In this case the SMK3 audit allows the company to manage the risk of losses to employees, assets, the environment, and operations, so that they can be responded to more quickly.
4. Basis for awards and guidance
For external audits specifically, the audit report is considered by the Minister when granting an award according to the level of implementation and the assessment category of the audit results. If the implementation level is rated poor, the Director General may take legal action against companies required to undergo an external audit, or provide guidance to companies that applied for an audit voluntarily. These provisions are in Articles 24 and 30 of Minister of Manpower Regulation Number 26 of 2014.
Who Is Required to Implement and Be Audited for SMK3?
Article 5 of Government Regulation Number 50 of 2012 requires SMK3 to be implemented by companies that employ at least 100 workers or laborers, or that have a high level of hazard potential. The definition of a high level of hazard potential follows the applicable laws and regulations.
Employers must also monitor and evaluate occupational safety and health performance, including through internal SMK3 audits carried out by competent personnel (Article 14).
For external audits by an SMK3 Audit Institution, Article 3 of Minister of Manpower Regulation Number 26 of 2014 sets out three groups of companies:
- companies that voluntarily apply for an SMK3 audit;
- companies with high hazard potential, including those in mining and in oil and gas;
- companies with high hazard potential as determined by the Director General and/or the Head of the Provincial Office.
Companies with high hazard potential must undergo an assessment of their SMK3 implementation (Article 16 paragraph 2 of Government Regulation Number 50 of 2012), and the cost of an external audit is borne by the company being audited (Article 31 of Minister of Manpower Regulation Number 26 of 2014).
What Are the Types of SMK3 Audit?
Audit process this can be done in two ways: internal and external audits. Here is the full explanation:
Internal Audit
As the name suggests, this audit is carried out by the company's internal to review whether the implementation of the K3 management system in the company is effective enough and provides input to management that allows for periodic improvements.
In the process, internal audit will involve every aspect of the company that includes activities and operations to be reviewed with SMK3.
Although conducted internally, these audits are carried out by competent independent personnel who are not related to the unit or section being audited.
This allows the results obtained by a team of professional and experienced auditors is an objective result.
Government Regulation Number 50 of 2012 asks for internal audits to be carried out by competent personnel. If a company lacks such resources, it may use the services of another party (Article 14 paragraphs 2 and 3). The results are reported to the employer and used to take corrective action (Article 14 paragraphs 4 and 5).
The regulation does not set a number of internal audits per year. Its annex states that audit frequency is determined based on a review of previous audit results and evidence of hazard sources found in the workplace.
The composition and number of members of the internal audit team are also not specifically set, so a company can adjust them to its size and operating risks.
External Audit
An external SMK3 audit is carried out by an SMK3 Audit Institution, a legal entity appointed by the Minister, not by just any outside institution. The appointment is valid for 3 years and can be extended (Articles 3 and 6 of Minister of Manpower Regulation Number 26 of 2014).
An SMK3 Audit Institution is prohibited from providing SMK3 consulting, manufacturing, maintenance, repair, and installation services for safety engineering, occupational safety inspection and testing, and safety guidance services (Article 8).
External audit results can become the basis for an award in the form of a silver or gold certificate and, for the advanced level, a silver or gold flag, as explained in the assessment section below.
Read Also: 7 Differences between Internal and External Audit, Let's Know!
What Are the Elements of SMK3 Audit?
Under Article 16 paragraph 3 of Government Regulation Number 50 of 2012, an SMK3 audit covers the following 12 elements. The third column lists examples of sub-elements assessed in Annex II of that regulation, where element names may differ slightly from those in the article.
| No | Elements | Examples of sub-elements assessed (Annex II) |
|---|---|---|
| 1 | Development and guarantee the implementation of commitments | OSH policy; responsibility and authority to act; review and evaluation; worker involvement and consultation |
| 2 | Creating and documenting K3 plan | OSH strategic plan |
| 3 | Control of planning and review of contracts | Design control; contract review |
| 4 | Document control | Approval, issuance, and control of documents; document changes and modifications |
| 5 | Purchase and control of products | Purchase specifications for goods and services; verification system for purchased goods and services; control of goods and services supplied by customers; product traceability |
| 6 | Security Works based on SMK3 | Work systems; supervision; personnel selection and placement; restricted areas; maintenance, repair, and modification of production facilities; services; readiness to handle emergencies; first aid for accidents; emergency plans and recovery |
| 7 | Monitoring standards | Hazard inspection; monitoring or measurement of the work environment; inspection, measuring, and testing equipment; monitoring of workers' health |
| 8 | Reporting and correction of deficiencies | Hazard reporting; accident reporting; accident investigation and review; problem handling |
| 9 | Material management and its displacement | Manual and mechanical handling; transport, storage, and disposal systems; control of hazardous chemicals |
| 10 | Data collection and use | OSH records; OSH data and reports |
| 11 | SMK3 examination | Internal SMK3 audit |
| 12 | Development of skills and abilities | Training strategy; training for management and supervisors; training for workers; induction training and training for visitors and contractors; special skills training |
See also:
- Risk Assessment is: meaning, steps, Matrix, & examples
- Audit Evidence: Definition, Types, Characteristics, and Examples
How Many Criteria Are There, and How Is an SMK3 Audit Scored?
An external SMK3 audit is carried out at one of three implementation levels, in line with Article 20 of Minister of Manpower Regulation Number 26 of 2014.
| Implementation level | Number of audit criteria |
|---|---|
| Initial | 64 |
| Transitional | 122 |
| Advanced | 166 |
Audit results are expressed as a percentage of implementation achieved and determine the award the Minister may grant (Article 30):
| Achievement | Rating | Follow-up or award |
|---|---|---|
| 0 to 59% | Not enough | The Director General may take legal action against companies required to undergo an external audit, or provide guidance to companies that applied voluntarily |
| 60 to 84% | Good | Silver certificate for the initial, transitional, and advanced levels; silver flag for the advanced level |
| 85 to 100% | Satisfactory | Gold certificate for the initial, transitional, and advanced levels; gold flag for the advanced level |
These awards are valid for a maximum of 3 years (Article 30 paragraph 7).
How are audit findings categorized?
| Category | Applies to | Deadline for corrective action |
|---|---|---|
| Critical | Findings on equipment, machines, aircraft, installations, materials, work methods, nature of work, work environment, and work processes that can cause loss of life | Within 1x24 hours at the latest |
| Major | Failure to meet occupational safety and health laws and regulations, failure to carry out one of the SMK3 principles, or minor findings on one criterion at several locations (established when there are 3 location findings) | Within 1 month at the latest |
| Minor | Inconsistency in meeting the requirements of laws and regulations, standards, guidelines, and other references | No specific deadline is stated |
According to Annex II of Government Regulation Number 50 of 2012, a company assessed in the critical or major category is considered not yet successful in implementing SMK3.
What Is the Procedure for Conducting SMK3 Audit?
The stages of an SMK3 audit differ between external audits, whose minimum stages are set by regulation, and internal audits, whose flow a company designs itself.
Minimum stages of an external audit
An SMK3 Audit Institution must prepare an audit implementation plan and submit it to the Minister or the Director General, with a copy to the Provincial Office. The audit must go through at least the following stages (Article 21 of Minister of Manpower Regulation Number 26 of 2014):
- an opening meeting;
- the SMK3 audit process;
- a meeting of the SMK3 audit team;
- a closing meeting; and
- preparation of the SMK3 audit report.
The audit report is submitted to the Minister through the Director General, with copies to the Provincial Office and the management of the audited company (Article 23).
Example flow of an internal audit
The regulation does not set a standard flow for internal audits. Below is an example flow commonly used in practice that can be adapted to a company's needs:
- Preparatory stage, which includes the determination of the audit team( internal and external), audit objectives, audit schedule, checklist audit, and audit procedure SMK3.
- Stages of information collection, which includes holding meetings with the company's management, collecting related documents, and interviewing relevant parties (K3 staff, employees, etc.)
- Policy and procedure evaluation phase, which includes an examination of compliance with K3 policies and an assessment of the consistency of K3 practices.
- Field review stage, which includes an examination of potential hazards in the work environment, the completeness of personal protection by the workforce, and the condition of related facilities and infrastructure.
- Employee training evaluation phase, which includes a review of employee training rights and their understanding of K3 and emergency measures.
- Stages of risk analysis, in which the auditor will identify the risks that occur and the actions that have been carried out by the company.
- Audit reporting stage, where the auditor will compile a systematic and coherent audit report on the company's management that includes data on findings, conclusions, recommendations, and action plans for improvement.
- Follow-up phase, where the company will respond and execute the recommended improvement plan also ensuring the required improvements will be implemented properly.
See also:
- Audit Finding Follow-Up: Causes of Overlooked Issues and Their Solutions
- Audit Program (Internal Audit Work Program): Definition, Types, Examples, and How to Prepare One
- Audit Working Papers: Definition, Function, Purpose, and Types
What Is the Difference Between an SMK3 Audit and ISO 45001 Certification?
An SMK3 audit refers to Government Regulation Number 50 of 2012 and Minister of Manpower Regulation Number 26 of 2014, and its external audit is carried out by an SMK3 Audit Institution appointed by the Minister. The government regulation also states that employers must be guided by it and may take international conventions or standards into account (Article 5 paragraph 4).
ISO 45001 is an international standard for occupational health and safety management systems, and certification is granted by certification bodies, not through the government's SMK3 award mechanism. Because their legal basis and assessors differ, a company should check what each requires and not treat the two as the same.
See also:
What Are the Benefits of SMK3 Audit?
Referring to the audit procedures that have been described previously, that this examination not only ensures improvements to the company, but also to the welfare and safety of its employees.
Here are some of the benefits that can be felt after carrying out the smk3 audit procedure:
- Strengthen the awareness and commitment of the company's management to occupational safety and health
- Working towards a more efficient K3 program
- Optimizing the performance and productivity of employees or workforce
FAQ About SMK3 Audits
What is an SMK3 audit?
An SMK3 audit is a systematic and independent examination of whether set criteria are met, used to measure the results of activities planned and carried out in implementing SMK3 in a company (Government Regulation Number 50 of 2012, Article 1 point 7).
What is the purpose of an SMK3 audit?
An SMK3 audit aims to measure how far the planned SMK3 is actually carried out, ensure compliance with occupational safety and health provisions, find gaps, and serve as the basis for improvement and for assessing the level of implementation.
What are the types of SMK3 audits?
Two types: internal audits by competent personnel in the company or another party the company uses, and external audits by an SMK3 Audit Institution appointed by the Minister. External audit results can become the basis for silver or gold certificate and flag awards.
How often are internal SMK3 audits conducted?
The regulation does not set a number of internal audits per year. The annex to Government Regulation Number 50 of 2012 states that audit frequency is determined based on a review of previous audit results and evidence of hazard sources found in the workplace.
What elements are assessed in an SMK3 audit?
Twelve elements, including commitment building and implementation, OSH plan documentation, design control and contract review, document control, purchasing and product control, work safety, monitoring standards, reporting and correction of deficiencies, material management, data collection, SMK3 examination, and skills development.
What is the procedure for an SMK3 audit?
An external audit goes through at least an opening meeting, the audit process, an audit team meeting, a closing meeting, and preparation of the report (Article 21 paragraph 2 of Minister of Manpower Regulation Number 26 of 2014). Internal audits have no standard flow; an example flow is preparation, information gathering, policy and procedure evaluation, field review, training evaluation, risk analysis, reporting, and follow-up.
Who Is Required to Implement and Be Audited for SMK3?
Companies that employ at least 100 workers or laborers, or that have high hazard potential, must implement SMK3 (Article 5 of Government Regulation Number 50 of 2012). Companies with high hazard potential must undergo an assessment of their SMK3 implementation, while other companies may apply for an audit voluntarily.
How many criteria does an SMK3 audit have?
There are three implementation levels: initial with 64 criteria, transitional with 122 criteria, and advanced with 166 criteria (Article 20 of Minister of Manpower Regulation Number 26 of 2014).
How long is an SMK3 award valid?
SMK3 award certificates and flags are valid for a maximum of 3 years (Article 30 paragraph 7 of Minister of Manpower Regulation Number 26 of 2014).
Conclusion
The SMK3 Audit allows the company to be systematically reviewed for compliance with the K3 program.
This is quite crucial because SMK3 is an effort to maintain the welfare of the workforce and the sustainability of the company.
To achieve this, the selection of professional and experienced auditors is an important option.
Audithink is internal audit management software that can be customized to a company's needs. K3 and internal audit teams can use it to prepare audit plans, audit work program templates, notifications, monitoring of finding follow-ups, and automated reports. External SMK3 audits remain carried out only by SMK3 Audit Institutions appointed by the Minister.
Please to schedule a demo application for your company's audit program will be implemented immediately. Contact contact us for more information!
