COMMUNICATION ON PROGRESS P.T. RAJAWALI CORPORA
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1 COMMUNICATION ON PROGRESS P.T. RAJAWALI CORPORA
2 I. COMPANY IDENTITY Company Name PT Rajawali Corpora Date April 8th, 2010 Address Menara Rajawali Kawasan Mega Kuningan Lot 5.1 Membership date Jakarta Country Indonesia Number of employees April 8 th, persons (Total Group) Contact name Y.W.Junardy Contact Position President Commissioner Sector Investment Holding Company Contact telephone no
3 Brief Description Brief description of nature of business PT. Rajawali Corpora is an investment holding company of Rajawali Group operating in diversified industries with 11 business units in hotels and resorts development, land and air transportation, agriculture (palm and sugar plantation), coal and gold mining, infrastructure and IT Services. The Group covers approximately 30,000 employees. 3
4 Continuing Support Statement of continuing support PT. Rajawali Corpora is proud to be the member of the United Nations Global Compact. We are committed to the Global Compact initiatives and uphold its ten principles pertaining to human rights, labor rights, protection of the environment and corporate governance. We believe that by adhering to this core set of universal values which are fundamental in meeting the socio economic needs of the world, we would be able to foster sustainable growth. Our commitment is also reflected in our full support to the operations of Indonesia Global Compact Network by providing office facilities, executive resources as well as operating funds in order to advance the GC Principles in Indonesia. Two of our business units also pledged to support to the CEO Water Mandate during the World Water Day on 22 March 2011 Peter Sondakh Chairman & CEO PT. Rajawali Corpora 4
5 Rajawali Corpora s Vision and Mission Vision : To become an outstanding reputable company that creates and adds value to our stakeholders Mission : Optimizing shareholders value. Delighting customers with superior products and services. Inspiring, empowering and caring for all employees. Supporting the community and environmental sustainability. 5
6 II. IMPLEMENTATION OF UNGC S 10 PRINCIPLES PRINCIPLE 1 BUSINESS SHOULD SUPPORT AND RESPECT THE PROTECTION OF INTERNATIONALLY PROCLAIMED HUMAN RIGHTS PRINCIPLE 2 BUSINESS SHOULD ENSURE THAT THEY ARE NOT COMPLICIT IN HUMAN RIGHTS ABUSES PRINCIPLE 3 BUSINESS SHOULD UPHOLD THE FREEDOM OF ASSOCIATION AND THE EFFECTIVE RECOGNITION OF THE RIGHT TO COLLECTIVE BARGAINING Respect for human rights is a fundamental principle of practicing good management and being a responsible business. At Rajawali, the implementation of human rights is reflected in the company philosophy, values, policies and code of business conducts covering the roles of management and employees as well as the advancement opportunity, competitive compensation and benefits, work environments and obligation to the community in location where we are operating (Corporate Social Responsibility). In 2010, we have taken initiative to redefine and re-launch our Corporate Culture by involving both Corporate and Business Units Executives. This was continued by corporate-wide socialization of Company s vision, mission and values to its employees as our effort to ensure employees to become familiar with, adopt and live by the Corporate Values. The values incorporate the principles of Global Compact as well as intended to build a culture that creates a conducive working climate and respect of one another. 6
7 Principle 1 3 : Company Policy Company Policy and Corporate Governance The Company Policy and Code of Business Conduct are in place and implemented across all Business Units. The policy document has been updated regularly and served as a guideline for the management and employees in conducting the business. Training on Company Policy and Code of Business Conducts has been conducted for all new employees at the New Employee Orientation sessions since Subsequently, the programs are conducted by each business unit separately. In November 2010, Corporate Governance department launched socialization program to be attended by all Business Unit Governance Coordinators and General Managers and above. Starting at the same month, Corporate Governance department published monthly e newsletters ed to all employees. The e newsletter is also accessible at RC Intranet for reference. Additionally, training to all related functions across Business Units were also conducted to ensure the functions are updated with the policy, i.e. Finance February 2011 Human Capital April
8 Principle 1 3 : Management Responsibility & EEO Embedding Management Responsibilities To establish corporate accountability, exercise fair, consistent treatment and transparency, the company has reorganized the Corporate Committees each chaired by Managing Director level: Compensation & Benefit Committee. Ensure competitive and consistent remuneration within the group. This includes approval of: competitive salary structure in line with the industry specifics; Executive compensation and bonuses; Employee benefits and perquisites; and employee stock option plan. Business Ethics Committee This Committee is responsible for enforcement and implementation of Business Conducts and Practices throughout the Group. Updates the Policy as required and handle any allegations of misconduct. Rights to Equal Employment Opportunity & Non Discriminatory Treatment Written policy is in place and implemented across Business Units. The policy defines that all hiring process, promotion and business decisions are taken strictly on qualifications, business imperatives and merit. 8
9 Principle 1 3 : Rights of Workers Rights of Workers Rights of Workers are stipulated in the Human Capital Policy. It covers among others: Health & Safety Rajawali has established comprehensive and adequate allowance including medical, transportation, health assistance, subsidy/assistance &emergency loan, safety and security procedures so the employees can have a favorable working condition and support their well being. The provision and amount of allowances may differ in Business Units by considering the industry common practices and requirements. Special field training is conducted for the plantation workers. Education Every employee is eligible to get training in order to develop their skills and competency to support company objectives. Company provides both soft skills and technical skills education as required. Some conducted internally, others are acquired externally. 9
10 Principle 1 3 : Rights of Workers Basic skill trainings are also conducted for low level employees such as: Computer operational training office boys, drivers and messengers (Oct 2010); English training for Assistant Managers and below during
11 Principle 1 3 : Rights of Workers Special scholarship program is also available, granted to the lower level employees children. This is applicable in Rajawali and across business units. In transportation business unit, Express Taxi, where drivers are business partner instead of employees, their children are also eligible for company scholarship. 11
12 Principle 1 3 : Rights of Workers Internal Communication The company facilitates various internal / employee communication programs to allow employees to express their aspiration to the management vice versa. The available programs include: Kick Off Meeting: An annual meeting attended by leaders / managers across the company and business units to recognize the achievers and to communicate company s business direction and strategy; 12
13 Principle 1 3 : Rights of Workers RC Newsletter Quarterly newsletter to communicate message from management, company key events, employee activities and community development activities Employee Suggestion Box Facilitates the employees to express their ideas and inspirations 13
14 Principle 1 3 : Rights of Workers Employee Clubs Coordinating activities related to employee personal interests and hobbies such as photography, cycling, futsal, etc. This is to also increase feeling of togetherness and solidarity. 14
15 Principle 1 3 : Rights of Workers Learning & Sharing Forum Forum for employees to share and learn each other on certain interest subjects relevant to business as well as for employee development. Speakers can be from employees or invited speaker. Key activities in 2010 among others: 78 sessions on Rajawali Culture conducted by 52 employees (as facilitators) attended by employees across business units. Knowledge sharing on Photography, Tax, 5R/5S filing system, performance management, job grading, CSR, etc. 15
16 Principle 1 3 : Rights of Workers Other employees programs : Monthly gathering / Cozy time, Cleaning Day, RC Cup (sport competition), employee outing 16
17 Principle 1 3 : Rights of Workers Employee Wellness : Company provides comprehensive wellness facilities. These benefits vary from one business unit to another depending on respective industry environments and affordability. These include: medical allowance & health prevention assistance; transportation allowances; special assistance/emergency loan offered to our employees affected by crisis, such as grievances (i.e.: death, prolonged sickness,) natural & fire disaster; employees leaves (Annual Leave, Long Service Leave, Maternity Leave, Sick Leave, Compassionate Leave, Hajj Pilgrimage Leave, and Unpaid Leave); Employee transfer/relocation entitlements for those who are relocated at the company s request, which include: housing allowance, educational allowance for the children, additional vocational leave, home trip, hardship allowance (if any,) and cost of living allowance. 17
18 Principle 1 3 : Rights of Workers Violations To exercise fair treatment and ensure all actions are justifiable, the company implements sanction procedures for any violations or breach of code of conducts by employees. Business Ethic Committee is involved in any serious violation. Termination of employment To ensure that all termination actions are justifiable, properly administered and executed according to the prevailing government laws and company policy/regulations, the company sets termination procedure and exit interview for any termination. There are two category of termination: company initiated termination and employee initiated termination. Employees whose employment is terminated may receive severance compensation according to the prevailing government policy. 18
19 Principle 1 3 : Association & Political Activities Freedom of association The company policy stipulates the company facilitates communication programs to allow dialog with employees to understand their aspirations. The formation of association or union is stipulated in the policy manual. Employee can form the organization so long it adheres to the company policy and code of business conduct. Political Activities The company is not affiliated to any political party. Employee joining political party is considered personal affair. Employees should not use the company s time and resources in conducting his/her political activities. 19
20 Principle 4 5 PRINCIPLE 4 PRINCIPLE 5 PRINCIPLE 6 Labor policy BUSINESS SHOULD SUPPORT THE ELIMINATION OF ALL FORMS OF FORCED AND COMPULSORY LABOUR BUSINESS SHOULD SUPPORT THE EFFECTIVE ABOLITION OF CHILD LABOUR BUSINESS SHOULD SUPPORT THE ELIMINATION OF DISCRIMINATION IN RESPECT OF EMPLOYMENT AND OCCUPATION In accordance to the established policy, company and its business units must not engage in any forced and compulsory labour. The company establishes standard working hours. The procedures and payment of overtime for eligible employees are provided in accordance to the government regulations. The company policy stipulates that the minimum age of employee to be hired is 18 years old. No child labour. 20
21 Principle 4 5 : Labor The following is the distribution of employee by age in Rajawali Corpora (does not include employees in Business Units): RAJAWALI CORPORA, PT GROUP AGE AS OF APRIL UP TOTAL
22 Principle 4 5 : Non discrimination Policy Non discrimination Policy Policy is in place and implemented across business units. Company provides a working environment that is free from harassment and discrimination including that of race, ethnic, color, religion, national origin, disability, marital status, age, sexual orientation, or gender. Distribution of employee by gender in Rajawali (Exclude Business Units): RAJAWALI CORPORA, PT EMPLOYEE DATA BY GENDER AS OF APRIL 2011 LEVEL FEMALE MALE TOTAL MANAGERIAL NON MANAGERIAL NON STAFF TOTAL
23 Principle 4 5 : Non discrimination Policy Promotion is fully based on individual performance and potentials, evaluated by immediate superior, and approved by superior s superior and Human Capital. In November 2009, Hay Group has started to conduct a third national employee opinion survey on employer of choice, in an attempt to identify the level of employees engaged performance in Indonesian companies and to provide insight and recommendation for eligible company for further initiative engagement plan. There are about 40 companies interested to participate on this program and finally 18 companies consisting of 26 entities from various industries (financial, manufacturing & non Manufacturing) with total 6474 employees responded to the questionnaire. In this Employer of Choice 2009/2010 survey, PT Rajawali Corpora placed 4th rank. The EOC Index of PT Rajawali Corpora is 72.3%, and this is placed between P75 and P90 of the market, which means PT Rajawali Corpora is among the 25% of top participating companies. 23
24 Principle 7 9 PRINCIPLE 7 PRINCIPLE 8 PRINCIPLE 9 BUSINESS SHOULD SUPPORT A PRECAUTIONARY APPROACH TO ENVIRONMENTAL CHALLENGES BUSINESS SHOULD UNDERTAKE INITIATIVES TO PROMOTE GREATER ENVIRONMENTAL RESPONSIBILITY BUSINESS SHOULD ENCOURAGE THE DEVELOPMENT AND DIFFUSION OF ENVIRONMENTALLY FRIENDLY TECHNOLOGIES Supporting the community and environmental sustainability is one of four mission statements in RC mission. As a responsible corporate citizen, the company and its business units have also initiated some programs related to the environmental protection: Sea Turtle Nursery Program conducted by one of our Hotel Operations in Lombok, Indonesia. The program aims at conserving existing sea turtles on the island of Lombok. Since its launch in 2003, the Sheraton Hotel in Lombok island has successfully incubated more than 36,000 eggs, and released more than 24,000 baby turtles back to the sea Continuing the Care for Community program, our Hotel Operation in Nusa Dua Bali planted 2000 mangroves in Serangan Beach, Nusa Dua Bali on April 4th, Serangan Beach area badly needs to be preserved from abrasion by the sea. The activity involved 200 employees, 50 primary school students, and the Cycling Club. 24
25 Principle 7 9 They supported the global initiatives to CLEAN UP THE WORLD. They were cleaning up the road over the traffic circle of Bualu village with others hotels community. Being member of RSPO, the plantation unit manages the palm planting according RSPO planting approach in order to obtain better yield while considering preserving the environment. Other community development programs such as animal husbandry, iron crafting program and fishery were done by Rajawali Plantations Our Mining Operation Company at East Kalimantan on March 5th, 2011 mobilized Green Generation by involving students from 3 primary schools and 1 junior high school to plant 3 trees per student. The total planted trees were trees. On March 22nd, 2011, while celebrating The World Water Day, two of our business units signed The UN CEO Water Mandate as a commitment to join in the effort to preserve and protect water resources, to help ensure growth and prosperity in the future Indonesia. 25
26 Principle 10 PRINCIPLE 10 BUSINESS SHOULD WORK AGAINST CORRUPTION IN ALL ITS FORMS, INCLUDING EXTORTION AND BRIBERY Core Values The adoption of corporate governance is embedded in our Rajawali Values which are the guiding principles of our operations, especially in the first value : Integrity : We act in an honest, ethical and truthful manner Caring : We show concern for others Respect : We value and appreciate other people s views Excellence & Innovative : We do the best to consistently exceed expectations through actions and the generation of new ideas Being Responsible : We are accountable for our actions and inactions Unity : We capitalize on differences and work together to achieve common goals Growth : We always strive to become better 26
27 Principle 10 : Business Conduct and Committees Code of Business Conduct Providing guideline to all employees in business conducted within and outside the Group. This includes: compliance with laws, regulations and company s policies; fair dealing; conflicts of interest: outside engagements, insider trading, gifts & entertainment; integrity of financial records, crisis management, and establishment of authorities, group asset and confidential information protection. Management Responsibilities The following committees are established in order to enforce the Business Conduct Practices across the group : Business Ethics Committee The Committee is responsible for the enforcement and implementation of Business Conduct and Practices throughout the Group. Update the Policy as required and handle any allegations of misconduct. Audit Committee Conduct financial and process audit in order to ensure compliance with the company policy and delegation of authority. 27
28 Principle 10 : Corporate Governance Promoting Good Corporate Governance Rajawali Corpora is also the active member of Indonesian Business Links (IBL), a non profit foundation aims to contribute towards the creation of sound and ethical business practices in the country; We support the training program in Business Conducts for SME s. We also participate in the National Corporate Social Responsibility Conference as a speaker which endorsed the active role of promoting the UN Global Compact. 28
29 Rajawali Foundation The Rajawali Foundation was founded in early 2010 by Peter Sondakh, the Chairman & CEO of P.T. Rajawali Corpora, an investment holding company operating in diverse industries and services. The Foundation s objectives and purposes are to engage in social and humanitarian activities. The Foundation is a non profit institution and not affiliated with any political organization. To achieve its objectives and purposes, the Foundation collaborates locally and internationally with private and public institutions, government, and civil society. The Foundation engages in the areas of education and research, human development, community advancement, and other activities that create economic value, promote diversity, contribute to the quality of life, and are consistent with the Foundation s objectives and purposes. The Rajawali Institute supports research, academic collaboration, education, conferences, publications, and policy studies in Indonesia, Southeast Asia, and beyond. The main focus of the Institute is to explore, develop, and disseminate knowledge for the betterment of society. The perspective of the Institute is interdisciplinary and its scope includes a broad range of social, economic, and governance issues. Rajawali, through Rajawali Foundation, has taken initiatives to work with Harvard Kennedy School on public policy study with the objective to help government to set up and implement effective public policy especially in addressing poverty issues 29
30 Rajawali Foundation & Harvard Together with The Harvard Kennedy School of Government, Rajawali Foundation published a book about Indonesia entitled `Indonesia Menentukan Nasib, dari Reformasi ke Transformasi Kelembagaan`(Indonesia Determines its fate, from Reform to Institutional Transformation). 30
31 Rajawali Foundation & Harvard Rajawali Foundation and the University of Indonesia also invited the dean of Harvard Kennedy School of Government, David T. Eliwood, to hold an academic dialogue with some senior Indonesian economists. The cooperation with Harvard Kennedy School is expected to open the opportunity for Indonesians to study public policy discipline. 31
32 Rajawali Foundation & Harvard The cooperation would also provide opportunities to conduct research on public policy discipline, obtain post graduate degree scholarships, sponsorships for lecturers and officials to do research at Harvard Kennedy School and training of administration officials in several subjects 32
33 Rajawali Foundation & Harvard 33
34 III. IMPLEMENTATION OF THE 8 MILLENIUM DEVELOPMENT GOALS Rajawali Corpora is committed to support the achievement of MDGs in Indonesia. This commitment is reflected in various CSR activities and programs initiated by the company as well as by its Business Units. This is in line with the declaration of UNGC in supporting MDGs. With the establishment of Rajawali Foundation, Rajawali embarks in a bigger scale in company efforts to support community development and achievement of MDG s in Indonesia. Eradication Extreme Poverty and Hunger Welfare Our transportation business unit offers Taxi Ownership Scheme to improve the living standards of its drivers by providing access to financing for 8,000 drivers to own assets (i.e.: a car) as well as access to market and skills training. The hotel operation units gave away donations and raised charity events for Unicef to support children s rights, survival, protection and development We participated in the emergency response and recovery program of some areas due to earthquake disaster during April 2010 April 2011, such as : Tasikmalaya in West Java, Padang in West Sumatra, Merapiat Yogyakarta and Central Java, and Mentawai. 34
35 Eradication Extreme Poverty and Hunger The emergency needs that we provided included foodstuffs, clothing, bedding, etc. 35
36 Eradication Extreme Poverty and Hunger By coordination with PMI, local communities or NGO we also provided emergency help and rebuilt public facilities such as : school at SMPN 2 Pengalengan at West java which was destructed by the earthquake water supply at Ngepos, Magelang, which was destructed by the volcano eruption 36
37 MDG 1 : Eradication Extreme Poverty and Hunger Our Mining Operation Company supported the community on providing water supply, village roads repair, construction of multipurpose building and also sport equipments 37
38 MDG 2 : Achieve Universal Primary Education Achieve Universal Primary Education Scholarship program is provided for lower level employees children, taxi drivers as business partners of the company, and for children from community around the company location We also supported Paramadina University Student Fellowship programs by providing full scholarship for 9 selected bright students from less fortunate families. Joining the voluntary day with Indonesia Global Compact Network, we supported renovation of the school in Bogor, West Java. Rajawali Plantations showed their commitment to support local communities by establishing kindergartens and elementary schools, and some mosques. 38
39 MDG 3 4 Promote Gender Equity and Empower Women Policy is in place and implemented across business units. Company provides a working environment that is free from harassment and discrimination including that of race, ethnic, color, religion, national origin, disability, marital status, age, sexual orientation, or gender. Reduce Child Mortality In cooperation with Yayasan Kanker Anak Indonesia (Child Cancer Foundation), our transportation business, Express Taxi provided free transportation to the children who suffer from cancer disease for their routine therapy medication. They come from poverty communities outside of Jakarta. Improve Maternal Health Our plantation business unit in Kalimantan offers free medical services and clean water facilities to the local community 39
40 MDG 6 7 Combat HIV/AIDS, Malaria and Other Diseases On March 2011, our transportation business, Expess Taxi held Talk Show and Socialization on Prevention and Treatment of Cervical Cancer for female employees. Ensure Environmental Sustainability Sea Turtle Nursery Program conducted by one of our Hotel Operations in Lombok, Indonesia. The program aims at conserving existing sea turtles on the island of Lombok. Since its launch in 2003, the Sheraton Hotel in Lombok island has successfully incubated more than 36,000 eggs, and released more than 24,000 baby turtles back to the sea. Continuing the Care for Community program, our Hotel Operation in Nusa Dua Bali planted 2000 mangroves in Serangan Beach, Nusa Dua Bali on April 4th, Serangan Beach area badly needs to be preserved from abrasion by the sea. The activity involved 200 employees, 50 primary school students, and the Cycling Club. They supported the global initiatives to CLEAN UP THE WORLD. They were cleaning up the road over the traffic circle of Bualu village with others hotels community. Being member of RSPO, the plantation unit manages the palm planting according RSPO plant approach in order to obtain better yield while considering preserving the environment. Other community development programs such as animal husbandry, iron crafting program and fishery were done by Rajawali Plantations. Our Mining Operation Company at East Kalimantan on March 5th, 2011 mobilized Green Generation by involving students from 3 primary schools and 1 junior high school to plant 3 trees per student. The total planted trees were trees. On March 22nd, 2011, while celebrating The World Water Day, two of our business units signed The UN CEO Water Mandate as a commitment to join in the effort to preserve and protect water resources, to help ensure growth and prosperity in the future Indonesia. 40
41 MDG 8 : Develop a Global Partnership for Development Develop a Global Partnership for Development Rajawali has taken initiatives to work with Harvard Kennedy School on public study to help government addressing poverty issues to set up and implement public policy. Rajawali Group is also the active member of Indonesian Business Links (IBL), a non profit foundation aims to contribute towards the creation of sound and ethical business practices in the country. Active participation in the National Corporate Social Responsibility Conference as a speaker endorsed the active role of promoting the UN Global Compact. 41
42 42
COMMUNICATION ON PROGRESS PT. RAJAWALI CORPORA
COMMUNICATION ON PROGRESS PT. RAJAWALI CORPORA 2012-2013 I. Company Identity Brief Descriptions Company Name PT Rajawali Corpora Date May 1st, 2013 Address Menara Rajawali Kawasan Mega Kuningan Lot 5.1
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