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SYNERGY for Sustainability Sustainability Report SYNERGY FOR SUSTAINABILITY PT Pupuk Indonesia (Persero) Kantor Pusat | Head Office Jalan Taman Anggrek, Kemanggisan Jaya, Jakarta 11480, Indonesia Phone (hunting): +62 21 536 54900 Facsimile: +62 21 80647955 Email: [email protected] Website: http://www.pupuk-indonesia.com Layanan Informasi | For further information 0800-1-008001 (Toll Free) Sustainability Report SYNERGY FOR SUSTAINABILITY Sustainability Report Sustainability Report SYNERGY FOR SUSTAINABILITY PT Pupuk Indonesia (Persero) www.pupuk-indonesia.com SYNERGY FOR SUSTAINABILITY ustainable development is the The implementation of Sustainability biggest challenge to human Principles requires a synergy in the beings today. Would we be business chain of the Company and able to meet the current needs the stakeholders. We optimize the withoutS diminishing the next generation’s resources, create productive cooperation capability to do the same for their needs? with the communities and partner with This is a fundamental question to us in the government, as well as involving growing the company based on three the stakeholders for the purpose of aspects in Sustainability Principles Profit, sustainability. People, Planet. PT Pupuk Indonesia (Persero) Sustainability Report 1 ABOUT THE REPORT PUPUK INDONESIA LAPORAN DEVELOPING DEVELOPING DEVELOPING DEVELOPING ATTAINING A DEVELOPING DEVELOPING PROFILE KEPADA PEMANGKU SUSTAINABLE STAKEHOLDERS’ COMPETENT HUMAN COMMUNITY HEALTHY WORK EXCELLENT TOP -NOTCH KEPENTINGAN GOVERNANCE ECONOMIES RESOURCES OF WELFARE ATMOSPHERE ENVIRONMENTAL PRODUCTS PUPUK INDONESIA PERFORMANCE TABEL OF CONTENTS 2 TABEL OF CONTENTS 40 DEVELOPING SUSTAINABLE GOVERNANCE 4 PERFORMANCE OVERVIEW 42 General Meeting of Shareholders 6 SIGNIFICANT EVENT 2017 42 Governance Structure 10 awarD AND certiFicatiON 43 Structure of the Board of Commissioners and Directors 44 Directors 44 Board of Commissioners 44 Anti-Corruption 14 ABOUT THE REPORT 45 Anti-Corruption Communications and Trainings 15 GRI Standard 45 Political Contributions 16 Reporting Period and Boundaries 46 Adoption and Support for International 16 Determining Report Content Initiatives 17 Principles of Determination 46 Membership in Indus trial Associations and of The Content of The Report Other Organizations 17 List of Material Topics and Boundary 46 Stakeholder Involvement 18 Materiality Level 47 Implementation of Sustainable Conception 19 Independent Assurance Suppliers 50 DEVELOPING STAKEHOLDERS’ eCONOMIES 20 PUPUK INDONESIA PROFILE 52 Revenues 22 Company Profile 53 Profitability 24 Milestone 53 Consumers 26 List of Subsidiaries and Operational Area 53 Production 28 Scale of Organization 54 Employee Awards 29 Vision, Mission and Values 54 Contribution to the Government Income 55 Contributions to the Public 56 Investment in Infrastructure and Services 54 Contributions to Local Suppliers 32 REPORT TO STAKEHOLDER 54 Production use in Country 35 Report of The Board of Commissioners 56 Financial Assistance from the Government 37 Report of Board of Directors 59 Challenges from Climate Change and Loss of Land 60 Corporate Synergies 2 PT Pupuk Indonesia (Persero) Sustainability Report ABOUT THE REPORT PUPUK INDONESIA LAPORAN DEVELOPING DEVELOPING DEVELOPING DEVELOPING ATTAINING A DEVELOPING DEVELOPING PROFILE KEPADA PEMANGKU SUSTAINABLE STAKEHOLDERS’ COMPETENT HUMAN COMMUNITY HEALTHY WORK EXCELLENT TOP -NOTCH KEPENTINGAN GOVERNANCE ECONOMIES RESOURCES OF WELFARE ATMOSPHERE ENVIRONMENTAL PRODUCTS PUPUK INDONESIA PERFORMANCE 64 DEVELOPING COMPETENT HUMAN 98 DEVELOPING EXCELLENT RESOURCES OF PUPUK INDONESIA ENVIRONMENTAL PERFORMANCE 65 Employee Demography 102 Optimization of Production Resources 66 Employee by Employment Status 102 Challenges Ahead 68 Recruitment 105 Energy Consumption 69 Employee by Age Group 108 Management of Water Utilization 70 Permanent Employees By Education Level 109 Standards and Methodologies 72 Freedom to Unionize 110 Water Recycling 72 Skills Development 110 Maintaining Biodiversity 74 Workplace Equality, Diversity, and 111 Emission Control Opportunity 116 Waste Management 76 Employee Benefit 123 Policy Supervision 77 Retirement Preparations 123 Environmental Related Complaints 124 Environmental Investment 2017 124 Compliance with Environmental Regulation 78 DEVELOPING COMMUNITY WELFARE 80 Social Responsibility Program of Pupuk Indonesia 126 DEVELOPING Top-NOTCH PRODUCTS 82 Partnership Program 127 Prioritizing Customer Health and Safety 84 Community Development Program 129 Responsibility of Product Information and 88 Testimony of PKBL Pupuk Indonesia Communication Beneficiaries 130 Product Packaging Information 90 Awards 134 Commitment to Complying with Regulations 136 ASSURANCE STATEMENT 138 Statement GRI StanDARDS CORE IN 92 ATTAINING A HEALTHY WORK AccORDANCE Check ATMOSPHERE 139 INDEX stanDARD GRI 93 Occupational Health and Safety 146 SDG’S LINK IN GRI stanDARD 94 Safe Working Hours 97 OHS Targets 97 Employee Representation in OHS Issue 98 Contractors and Occupational Safety 98 OHS Training and Meetings 98 Healthcare for Employees PT Pupuk Indonesia (Persero) Sustainability Report 3 ABOUT THE REPORT PUPUK INDONESIA LAPORAN DEVELOPING DEVELOPING DEVELOPING DEVELOPING ATTAINING A DEVELOPING DEVELOPING PROFILE KEPADA PEMANGKU SUSTAINABLE STAKEHOLDERS’ COMPETENT HUMAN COMMUNITY HEALTHY WORK EXCELLENT TOP -NOTCH KEPENTINGAN GOVERNANCE ECONOMIES RESOURCES OF WELFARE ATMOSPHERE ENVIRONMENTAL PRODUCTS PUPUK INDONESIA PERFORMANCE PERFORMANCE OVERVIEW 2017 ECONOMIC PERFORMANCE 2015 2016 2017 Consolidated Revenue Rp trillion Rp trillion Rp66.23 trillion 64.16 58.94 Profit for The Year Rp trillion Rp3.39 trillion Rp3.53 trillion 3.08 Contribution to the State (Tax) Rp4.61 trillion Rp5.50 trillion Rp4.94 trillion PSO Fertilizer Sales 8,881 ribu ton 9,181 thousand ton 9,298 thousand ton Non-PSO Fertilizer Sales 2,882 thousand ton 2,913 thousand ton 3,207thousand ton Gas Consumption Ratio Natural Gas Consumption Ratio The factory revitalization program, 37.43 37.46 36.10 30.20 29.86 28.69 which is aimed to boost efficiency and competitive power amid the plummeting prices of ammonia and urea, has brought success for the Company in reducing urea gas consumption rate: at 2.5% (CAGR mbtu/ton 2015-2017) and 1.79% (CAGR 2015-2017) respectively. 2015 2016 2017 2015 2016 2017 4 PT Pupuk Indonesia (Persero) Sustainability Report ABOUT THE REPORT PUPUK INDONESIA LAPORAN DEVELOPING DEVELOPING DEVELOPING DEVELOPING ATTAINING A DEVELOPING DEVELOPING PROFILE KEPADA PEMANGKU SUSTAINABLE STAKEHOLDERS’ COMPETENT HUMAN COMMUNITY HEALTHY WORK EXCELLENT TOP -NOTCH KEPENTINGAN GOVERNANCE ECONOMIES RESOURCES OF WELFARE ATMOSPHERE ENVIRONMENTAL PRODUCTS PUPUK INDONESIA PERFORMANCE ENVIRONMENT PERFORMANCE Pupuk Indonesia gained Proper “Gold” award for the first time in 2017 through its subsidiary, PT Pupuk Kalimantan Timur, who has successfully demonstrated excellence in sustainable environmental management. Meanwhile, the other subsidiaries managed to maintain the Proper “Green” awards. PROPER PROPER PROPER GOLD BLUE “GREEN” PT Pupuk PT Pupuk PT Pupuk Sriwidjaja Palembang Kalimantan Iskandar Muda PT Pupuk Kujang Cikampek Timur PT Petrokimia Gresik SOCIAL PERFORMANCE Rp184.12 billion Rp66.58 billion Realization of Partnership Realization of CSR Financing and Community 2017. Development Program Financing 2017. OCCUPATIONAL HEALTH PERFORMANCE Corporate Safe Working Hours 5,460,859 4,923,428 6,774,477 safe working hours safe working hours safe working hours PT Petrokimia Gresik PT Pupuk Kujang Cikampek PT Pupuk Kalimantan Timur 3,569,493 6,319,427 safe working hours safe working hours PT Pupuk Iskandar Muda PT Pupuk Sriwijaya Palembang PT Pupuk Indonesia (Persero) Sustainability Report 5 ABOUT THE REPORT PUPUK INDONESIA LAPORAN DEVELOPING DEVELOPING DEVELOPING DEVELOPING ATTAINING A DEVELOPING DEVELOPING PROFILE KEPADA PEMANGKU SUSTAINABLE STAKEHOLDERS’ COMPETENT HUMAN COMMUNITY HEALTHY WORK EXCELLENT TOP -NOTCH KEPENTINGAN GOVERNANCE ECONOMIES RESOURCES OF WELFARE ATMOSPHERE ENVIRONMENTAL PRODUCTS PUPUK INDONESIA PERFORMANCE SIGNIFICANT EVENTS 2017 4 January 2017 General Meeting of Shareholders (GMS) to discuss the 2017 Budget & Business Plan, held in Jakarta. 9 March 2017 On March 9, 2017, Pupuk Indonesia Group held Coordination Meeting in Bogor to discuss Corporate Performance In 2016 and its plans for 2017. 26 April 2017 Inauguration of the Pusri IIB urea and ammonia plant on April 26, 2017. The plant is able to produce 907,500 tons of urea and 660,000 tons of ammonia per year. 6 PT Pupuk Indonesia (Persero) Sustainability Report ABOUT THE REPORT PUPUK INDONESIA LAPORAN DEVELOPING DEVELOPING DEVELOPING DEVELOPING ATTAINING A DEVELOPING DEVELOPING PROFILE KEPADA PEMANGKU SUSTAINABLE STAKEHOLDERS’ COMPETENT HUMAN COMMUNITY HEALTHY WORK EXCELLENT TOP -NOTCH KEPENTINGAN GOVERNANCE ECONOMIES RESOURCES OF WELFARE ATMOSPHERE ENVIRONMENTAL PRODUCTS PUPUK INDONESIA PERFORMANCE 12 June 2017 Pupuk Indonesia issued the Shelf Registration Bond I (PUB I) Tranche I 2017 valued at Rp3.57 trillion on June 12, 2017. The unsecured securities are rated AAA by FitchRatings. 15 May 2017 Pupuk Indonesia held the General Meeting of Shareholders for FY 2016 on May 15, 2017 in Jakarta. 19 June 2017 Pupuk Indonesia took part in the Mudik Bersama BUMN organized by the Ministry of State-owned 26 Mey 2017 Enterprises on June 19, 2017. Pupuk Indonesia and the National Audit and Development Supervisory Body (BPKP) signed a Memorandum of Understanding on Development, Implementation, and Strengthening Good Corporate
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