Sustainability Report 2017
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SUSTAINABILITY REPORT 2017 ABOUT BAKRIE & BROTHERS Exploring Our Strength As the Indonesia economy grows, PT Bakrie & Brothers Tbk continue to look for ways of expanding its business and ensuring sustainability by means of exploring its existing capabilities and increase its performance. PT BAKRIE & BROTHERS TBK 1 ABOUT BAKRIE & BROTHERS Contents About 4 BNBR 6 Business Lines 8 Company Milestones 10 Corporate Profile 14 Structure of Corporate Group 16 Product and Service Distribution Map 18 BNBR in Number 19 Awards & Certifications CEO 32 Message About 34 This Report 36 Reporting Principles 36 Reporting Structure 36 Reporting Period 36 Report Scope and Limitations 36 Report Content and Determination Process 37 Suggestion and Feedback Stakeholder 38 and Materiality 38 Stakeholder Engagement Method 39 Materiality Determination 40 Material Aspect Identification & Report Boundary EXPLORING OUR STRENGTH 2 SUSTAINABILITY REPORT 2017 ABOUT BAKRIE & BROTHERS Corporate Respecting Health and 42 Governance 56 Our 78 Safety 44 Corporate Governance Employees 80 Occupational Health Charter 58 Our Employees and Safety (OHS) 45 Governance Framework 61 Remuneration 81 OHS Policies 46 Code of Ethics and Code 62 Training and Development 81 OHS Committee of Business Conduct 63 Employee Rights 82 OHS Performance 47 Risk Management 63 Employee Welfare 83 OHS Trainings and Facilities 48 Internal Control System 83 Occupational Health 48 Whistleblowing System 49 Anti-Corruption Measure, Training and Socia Community GRI 64 Empowerment 84 Standard 66 Corporate Social Sustainable Responsibility Vision 50 Economic and Mission 67 Implementation Profile Performance of ISO 26000 90 Management 52 The Contribution to the 69 Bakti Kami Untuk Negeri, National Income Through Untuk Indonesia 52 Supporting Indonesia Development 53 BNBR Support in Actualizing Indonesia’s Environment National Development Plan 72 54 Goods, Services and 74 Environmental Preservation Operational Business 75 Environmental Responsibility Management Program 54 Sustainable Partnership 75 Water Management with Suppliers and Conservation 55 Relationship Management 75 Energy Conservation & Customer Satisfaction Assessment 75 Emission Control 55 Maintaining Effectiveness 76 Waste Management and Efficiency of 76 Environmental Operational Activities Monitoring Program 55 Continuous Improvement 77 Environmental Social Responsibility Program DISCLAIMER: This report contains certain statements that may be considered “forward-looking statements”, the Company’s actual results, performance or achievements could differ materially from those projected in the forward-looking statements as a result, among other factors, of changes in general, national or regional economic and political conditions, changes in foreign exchange rates, changes in the prices and supply and demand on the commodity markets, changes in the size and nature of the Company’s competition, changes in legislation or regulations and accounting principles, policies and guidelines and changes in the assumptions used in making such forward-looking statements. * This Annual Report will use the name “BNBR “ or “Company” as reference of PERUSAHAAN PERSEROAN (PERSERO) PT BAKRIE & BROTHERS Tbk. For more information please visit www.bakrie-brothers.com PT BAKRIE & BROTHERS TBK 3 ABOUT BAKRIE & BROTHERS About Bakrie & Brothers EXPLORING OUR STRENGTH 4 SUSTAINABILITY REPORT 2017 ABOUT BAKRIE & BROTHERS About Bakrie & Brothers PT BAKRIE & BROTHERS TBK 5 ABOUT BAKRIE & BROTHERS About Bakrie & Brothers PT Bakrie & Brothers Tbk (BNBR) has been actively participating in building Indonesia in the manufacturing and infrastructure sector since 1942. In 2017, BNBR aimed to improve the customer satisfaction. Through this initiative, we hope to secure sustainability of our business that will enable our company to continue create added value for our stakeholders and lasting benefit for the local community where we operate, and for the people of Indonesia. Infrastructure PT Bakrie Construction Head Office Bakrie Tower 35th Floor, Jl H.R Rasuna Said, Jakarta Selatan 12940, Indonesia Phone : (62 21) 299 12345 Fax : (62 21) 299 41955 www.bakrieconstruction.com Manufacture PT Bakrie Building Industries Jl. Daan Mogot Km 17,3 Jakarta 11850, Indonesia Phone : (62 21) 619 0208 Fax : (62 21) 619 2950 www.bakrie-building.com PT Bakrie Autoparts Jl. Raya Bekasi KM.27 Pondok Ungu, Bekasi 17132, Indonesia Phone : (62 21) 8897 6601 Fax : (62 21) 8897 6607 www.bakrie-autoparts.com PT Bakrie Metal Industries Bakrie Tower 35th Floor, Jl HR Rasuna Said, Jakarta 12940, Indonesia Phone : (62 21) 2991 2120 Fax : (62 21) 2991 2211 www.bakrie-metal.com PT Bakrie Pipe Industries Bakrie Tower 7th Floor, Jl H.R Rasuna Said, Jakarta Selatan 12940, Indonesia Business Line [102-2][102-6] Phone : (62 21) 2994 1270 BNBR operates multiple lines of business in manufacturing Fax : (62 21) 2994 1267–68–69 and infrastructure. Our business lines are including: www.bakrie-pipe.com EXPLORING OUR STRENGTH 6 SUSTAINABILITY REPORT 2017 ABOUT BAKRIE & BROTHERS PT BAKRIE & BROTHERS TBK 7 ABOUT BAKRIE & BROTHERS Company Milestones 1942-1962 1986-1989 1990-1996 1997-2001 2002-2003 2004-2006 2007-2008 • Established as a • Initial Public Offering • BUMI acquired • UNSP expanded its general trading & (IPO) of UNSP. additional 20% shares and to 107,000 ha distributor company. • Licensed to operate of PT Arutmin valued at US$110 • Pioneered fixed wireless Indonesia. million. Indonesia’s telecommunication • BUMI acquired 100% • BTEL initiated Steel Pipe services. ownership of PT Kaltim national expansion Manufacturing • Founded PT Bakrieland Prima Coal (“KPC”) worth US$72 million Industry. Development (“ELTY”). at US$500 million. • BNBR acquired ELTY, ENRG, & BUMI, at US$4.4 billion. • BUMI acquired Herald Resources, • Founded PT Energi • Acquired PT Bakrie valued at US$547 Mega Persada Sumatera Plantations million. (“ENRG”). (“UNSP”). • ELTY purchased • PT Bumi Resources • Initial Public Offering 75.04% shares of (“BUMI”) acquired 80% (IPO) of BNBR. Alberta Utilities shares of at US$2 milion. PT Arutmin Indonesia. • BUMI acquired 44% • PT Bakrie Capital shares of DEWA at Indonesia acquired US$218 million. 58.1% shares of BUMI. • PT Bakrie Telecom (“BTEL”) conducted IPO and obtained national operation license. • BTEL launched CDMA based telecommunication service. • ENRG bought 100% shares of BP. EXPLORING OUR STRENGTH 8 SUSTAINABILITY REPORT 2017 ABOUT BAKRIE & BROTHERS 2009 2010 2011 2012 2013-2014 2015 2016-2017 • Signed an SPA • BNBR completed • Official Inauguration agreement with Vallar, transaction of of PT. Bakrie UK worth US$844 million. divestment upon some Pipe Industries’ • Founded Bakrie ownership in Bumi plc. coating plant. Connectivity data • Signed Gas • PT Kalimantan Jawa services. Transportation Gas (“KJG”) started • ELTY acquired 51% Agreement (GTA) for coating its pipes. shares of PT Bukit Kepodang- Tambak • Kalija Phase 1 Jonggol Asri at US$111 Lorok section. Infrastructure Project million and 20% shares • Signed of Assets started its gas of PT Bukit Sentul Purchase of KG- transportation. at US$17 million. Technology by PT Bakrie • Visit from the Ministry • BUMI acquired 24% Tosanjaya (BTJ). of Public Work and shares of PT Newmont Housing for CCTW Nusa Tenggara at Project groundbreaking. US$225 million. • Preparation stage • ELTY acquired Lido of Tanjung Jati A Lake Resort (99.99% power plant project of ownership) at is approaching US$39 million. completion. • BUMI acquired 84% • BNBR completed of Pendopo Energi revitalization process, • PT Bakrie Pipe Batubara, valued including the quasi Industries (BPI) • Cimanggis-Cibitung at US$117 million. reorganization. awarded with Tollways Project • ENRG signed • ENRG acquired significant pipe supply continues land agreement to Offshore North contract by Pertagas acquisition process purchase 10% West Java block at and Pertamina EP as well as phase stake in Masela US$212 million. • BTJ changed its 1 construction. PSC Block, valued • Bakrie group name to PT Bakrie • First phase of Kalija at US$90 million. established strategic Autoparts (BA) project has fully • BUMI acquired partnership with • Phase 1 of Kalija operated. Gas 76.8% of PT Fajar BORN and decreased infrastructure transportation carried Bumi Sakti, valued debts by US$1 billion. project initiated. out according to GTA. at US$222 million. PT BAKRIE & BROTHERS TBK 9 ABOUT BAKRIE & BROTHERS Corporate Profile[102-1][102-2][102-3][102-4][102-5][102-6][102-7] Name : PT Bakrie & Brothers Tbk Listing Code : BNBR Business Activity : Investment and Divestment : General trading, construction, agriculture, mining, industry, especially steel pipes manufacturing, Line of Business building materials and other construction materials, telecommunication systems, electronic and electrical goods, and investment, including equity investments in other companies. : Bakrie Tower, 35th – 37th Floor, Rasuna Epicentrum Address Jl. H.R Rasuna Said, Jakarta 12940 Telephone : 021 2991 2222 Faximile : 021 2991 2333 Call Center : N/A Homepage : www.bakrie-brothers.com Email : [email protected] Establishment Date : March 13th, 1951 Legal Basis of Establishment : Deed of Sie Khwan Djioe No.55 dated March 13th, 1951. Authorized Capital : Rp 49,562,769,356,000 (451,451,975,120 shares) Paid- In Capital : Rp 13,254,240,689,192 (113,535,564,308 shares) Tax Registration Number : 01.000.913.2-054.000 Registration of Company : 09.03.1.70.00661 prevails to March 11th , 2021 Business Registration : 00291-04/PB/P1/1.824.271 prevails