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 Jakarta 12920 Country Indonesia Number of employees Membership Date April 8 th, 2006 ±32.000 persons (Total Group) Contact Name & Contact Position & Contact Telephone No Y. W. Junardy President Commissioner 021 5760808 Sector Investment Holding Company PT Rajawali Corpora = an investment holding company of Rajawali Group = operating in diversified industries with 13 business units = Business units - hotels and resorts development, land and air transportation, agriculture (palm, sugar, rubber, and corn plantation), coal, gold, and iron sands mining, broadcast media, infrastructure, and IT Services.
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 participation in collaborative actions and 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. Peter Sondakh Chairman & CEO PT Rajawali Corpora
Vision - Mission
II. Implementation of UNGC s 10 Principles
Human Rights Implementation in Brief Reflected in: The company philosophy and values Policies and code of business conducts covering: the roles of management and employees the advancement opportunity competitive compensation and benefits work environments obligation to the community in location where we are operating
Rajawali A Philosophy
Rajawali Values
Framework: Corporate Governance Designed to provide the Rajawali Corpora Board, the Business Unit Boards, and the RC Group s employees with a structure by which: the business is conducted decisions are presented and approved employees conduct themselves
Aims of the framework To create Shareholder Value To protect individuals provides ground rules in which management can operate A part of Risk Management To provide good control environment To provide good business practice where it is structured and focusing on core principles To establish credible structure/credibility assisting to attract solid, long term investors
Process Corporate Governance The Governance document Reviewed and updated once a year Served as a guideline in conducting the business Updated company policies Socialization Open proposal for changes (once a year) Continuous training throughout the year Governance Online System for submissions, status tracking, and approvals Governance reminder & survey (results business units surveyed were complied) Governance e-learning System
Management Responsibilities Corporate Committees each chaired by Managing Director level Aims To establish corporate accountability, exercise fair, consistent treatment and transparency Human Resources Committee. Responsible for ensuring competitive and consistent remuneration within the group Ethics Committee Responsible for enforcement and implementation of Business Conducts and Practices throughout the Group. Updating the Policy as required. Handling any allegations of misconduct. Environment and Sustainability Committee Established in 2012, responsible for ensuring that all policies relating to sustainability are relevant and effective and for assessing how successfully each Rajawali invested business unit is able to implement policy, set realistic goals, and monitor performance
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.
Rights of Workers 1 Stipulated in the Human Capital Policy Health & Safety Examples: comprehensive and adequate allowance on medical, transportation, health assistance, subsidy/assistance & emergency loan, safety, and security procedures. Education Every employee is eligible to get training in order to develop their skills and competency Both soft skills and technical skills education as required. Internal and external communication
Rights of Workers 2 Internal Communication Programs Various internal / employee communication programs to allow employees to express their aspiration to the management, and vice versa (recognition, rewards) Examples: Kick-off Meeting, Intranet Rajawali, Employee Activities, and other Informal Gatherings
Rights of Workers 3 Employee Wellness A comprehensive wellness facilities. These benefits vary from one business unit to another depending on each respective industry environments and affordability. Violations To exercise fair treatment and ensure all actions are justifiable sanction procedures for any violations or breach of code of conducts by employees. Ethics Committee is involved in any serious violation. Termination of Employment Company policies : Termination procedures & exit interview Complied with government law & regulations
Rights of Workers 4 Freedom of Associations Facilitating various internal 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 as 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 a personal affair Employees should not use the company s time and resources in conducting his/her political activities.
Obligation to the Community Express Group cooperated with Yayasan Kanker Anak Indonesia (Child Cancer Foundation) providing free transportation to children who suffer from cancer disease for their routine therapy medication. Rajawali Corpora supports University Paramadina Fellowship program to make a positive impact on building the nation. Full scholarship education programs for the nation s talented students have been offered to students of less-privilege family. Rajawali Foundation provided cash and in kind donations and support to a number of worthy causes during these two years. Regularly all business units in the Group took it in turn to co-host and arrange CSR programmes to build knowledge and best practice across the group in CSR activities.
Labor Policy 1 The established policy Not engaged in any forced and compulsory labour. A standard working hour. The procedures and payment of overtime for eligible employees are provided in accordance to the government regulations. The minimum age of employee to be hired is 18 years old. No child labour. Distribution of Age (excluding Business Units):
Labor Policy 2 Non-discrimination policy a working environment that is free from harassment and discriminations including that from race, ethnic, color, religion, national origin, disability, marital status, age, sexual orientation, or gender. Promotion is fully based on individual performance and potentials, evaluated by immediate superior, and approved by superior s superior and Human Capital. Distribution by Gender (excluding business units):
Sustainability In Brief During 2012 Conducted a series of key workshops Senior management participation Examined the key issues and impacts arising from our business operations to the economy, environment, and social development The Outcome Articulated on our strategic sustainability framework (see the next slide) Recording the Company approach to sustainability and sustainable development to meet the needs of the present without compromising the ability of future generations to meet their own needs.
Rajawali Sustainability Framework
Sustainability commitment Five pillars the creation of value, care for people, excellence in delivery, community awareness and support and responsible environmental management. Translated into a series of Sustainability policies in Rajawali Corpora Corporate Governance. Day to day implementation an active group of Environment and Sustainability Champions (ESCN) Environment and Sustainability Committee Established in 2012, responsible for ensuring that all policies relating to sustainability are relevant and effective Meeting is in place regularly, twice in 2012 - to ensure all policies are relevant and effective and to assess how successful the implementations are
Environmental Initiatives 1 Aims to promote greater environmental responsibility and encourage the development and diffusion of environmentally friendly technologies during the course of 2012-2013 Agriculture Group Examples: Best practices in agronomy with an environmentally responsible approach, a training center for skilled agronomists, conducting high conservation value assessment, zero peatland development, zero tolerance of forest burning, using oil palm shells, planting, reforestation
Environmental Initiatives 2 Mining Group Reclamation and decommission sites to a safe and stable condition Collecting top soil and vegetation from sites before mining operations begin for replanting purposes during rehabilitation Collection and disposal of hazardous waste by approved third parties Water treatment and regular monitoring of water and air quality Training of employees and contractors Reduction of dust emissions through water spraying Nusantara Infrastructure Nusantara Care Six environmental core themes
Environmental Initiatives 3 Express Group Refer to Express Taxi Sustainability Report Premiair Premiair compliance with ISO 14001 Environmental Management System Property Group Central to the strategy is the appointment of first class operators to manage the hotels International hoteliers for delivering the best in service standards and a professional approach to environmental stewardship Starwood Group, Marriot International, Four Seasons, Novotel Green-building standard
Environmental Initiatives 4 Rajawali Foundation March 2012, participated in a seminar hosted by IGCN and the Ministry of Public Works on Collaborative Water Management in Indonesia On World Water Day The theme of Water and Food Security covering a variety of actions and policies to conserve water. On World Earth Day 23rd April 2012 Bina Nusantara University, Jakarta Attended the launching of a collaborative action programes on water issues and sanitation as a lead in to the RIO + 20 event On September, participated in a further IGCN gathering to raise awareness of the need to conserve water resources.
Core Values 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
Management Responsibilities Corporate Committees Aims to enforce the Business Conduct Practices across the group. Ethics Committee Responsible for the enforcement and implementation of Business Conduct and Practices throughout the Group. It updates the Policy and handles any allegations of misconduct. Audit Committee Responsible for the financial and process audit conducts in order to ensure compliance with the company policy and delegation of authority. Rajawali Corpora is an 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. Participated in the 3 rd National Corporate Social Responsibility Conference as a speaker and moderator which endorsed the active role of promoting the UN Global Compact.
Rajawali Foundation on Public Policy Education & CSR 1 A social institution that is committed to support education as an important component of change and development in Indonesia In the area of public policy education. Enabling scholars, politicians, bureaucrats in Indonesia to have the chance to develop their knowledge through the leadership transformation program. Carries out the Corporate Social Responsibility action and Good Corporate Governance practice, as a part of our community development agenda. It believes that by fostering better leadership and developing community in Indonesia, it will be possible to attain a more sustainable living environment for our better future.
Rajawali Foundation on Public Policy Education & CSR 2 Public Policy Education Initiatives Leadership Transformation in Indonesia Program Harvard Kennedy School Indonesia Program Indonesian Centre for Public Policy Studies Publication In March 2012, a book on 'Shaping Indonesia's destiny' was introduced in Jambi, Sumatra. Community Development Program & Initiatives The United Nations Global Compact Local Government Activities
THANK YOU PT Rajawali Corpora 2012-2013