2019 Sustainability Report
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PROLOGUE ABOUT PT. AUSTINDO NUSANTARA JAYA TBK. PROSPERITY-ECONOMIC PERFORMANCE CONTENTS PROLOGUE Theme 1 Key Performance 2019 2 Sustainability Performance 3 Awards Received in 2019 4 Message from the CEO 8 Reporting Approach 12 Responsible Development Program 16 Our Vision, Mission and Values 17 ANJ’s Sustainability Policy 19 Precautionary Principle or Approach 21 Key Impacts, Risk, and Opportunities 22 Good Corporate Governance 23 ABOUT 01 PT AUSTINDO NUSANTARA JAYA TBK. Organizational Structure (Summary) 29 Our Markets 31 Our Employees 32 Our Supply Chain 35 External Initiatives and Certification 37 Membership of Associations 39 PROSPERITY - Economic Performance 02 Economic Performance 42 PLANET - Stewardship of Natural Resources & Management of the 03 Environment Biodiversity 48 Protecting and Managing Peatlands 61 Fire Prevention and Management 63 Reducing Supply Chain Impacts 64 Integrated Pest Management 66 Energy 69 Emissions 71 Waste Management 74 PEOPLE – Human Well-Being 04 Empowering Our People 78 Occupational Health and Safety 78 Empowering Communities for a Better Life 85 Respecting Human Rights 86 Social impact assessment 88 Community Involvement and Development 91 Independent Assurance Opinion Statement 100 CROSS-REFERENCE 05 Cross-Reference to GRI Standards 106 Cross-Reference to SDGs 109 Cross-Reference to POJK 51 110 Feedback Form 113 Abbreviations 115 i PT Austindo Nusantara Jaya Tbk. | Sustainability Report 2019 PLANET-STEWARDSHIP OF NATURAL RESOURCES & MANAGEMENT OF THE ENVIRONMENT PEOPLE-HUMAN WELL-BEING CROSS-REFERENCE RESPONSIBLE DEVELOPMENT: RESOLVING CHALLENGES WITH RESILIENCE AND INNOVATION As a company engaged in the agribusiness sector across a range of geographies, we face unique environmental, social and economic challenges. The past year has been no different. Throughout its history, ANJ has proved its resilience by optimizing our resources, taking strategic and prudent action when needed, and always protecting the interests of our stakeholders through our philosophy of responsible development. The past year has seen us step-up our focus on addressing challenges through innovation and resilience to ensure that we meet our responsible development commitments. We have consistently championed innovation by empowering our people to apply their knowledge, ingenuity and creativity to improve the productivity and sustainability of our business. They have responded by developing solutions across our operations that add value, increase efficiency and reduce costs. These have included technological advances such as our E-Plantation Mobile Solution to improve our field operations; new applications for sago starch and edamame that have both commercial value and can contribute to better nutrition and income generation in communities; engaging our people as citizen scientists to document the biodiversity in our operational areas; expanding our waste recycling initiatives to reduce inorganic fertilizer and fossil fuel use; and working with communities to bring about changes that make a real difference to their lives, such as our savings cooperative in West Papua. Across the business, we have identified innovative ways to use existing resources more effectively, never losing sight of our responsibility to build and sustain our business for a better future for all our stakeholders. PT Austindo Nusantara Jaya Tbk. | Sustainability Report 2019 1 PROLOGUE ABOUT PT. AUSTINDO NUSANTARA JAYA TBK. PROSPERITY-ECONOMIC PERFORMANCE KEY PERFORMANCE 2019 CPO SALES VOLUME (tonnes) 239,800 TOTAL REVENUE (USD thousand) FFB PRODUCTION (tonnes) 130,355 732,837 SAGO PRODUCTION (tonnes) 6.8% from 2018 46.8% 2,781 from 2018 CPO PRODUCTION NUMBER OF OIL PALM (tonnes) SMALLHOLDERS (people) 3,180 240,844 3.2% from 2018 NUMBER OF EDAMAME SMALLHOLDERS (people) 42 PK PRODUCTION (tonnes) CSR SPENDING (USD thousand) 51,585 7,509 4.5% from 2018 NUMBER OF COMMUNITY BENEFICIARIES (people) EDAMAME 76,597 PRODUCTION (SPREAD ACROSS 9 REGENCIES, 28 (tonnes) DISTRICTS AND 88 VILLAGES) CONSERVATION AREAS 710 (hectare) 42.2% from 2018 58,390 2 PT Austindo Nusantara Jaya Tbk. | Sustainability Report 2019 PLANET-STEWARDSHIP OF NATURAL RESOURCES & MANAGEMENT OF THE ENVIRONMENT PEOPLE-HUMAN WELL-BEING CROSS-REFERENCE SUSTAINABILITY PERFORMANCE Sustainability Performance 2019 2018 2017 Prosperity Quantity of FFB production (tonnes) 732,837 786,104 730,356 Quantity of CPO production (tonnes) 240,844 248,694 210,248 Quantity of PK production (tonnes) 51,585 54,033 44,037 Quantity of sago starch production (tonnes) 2,781 1,894 788 Quantity of edamame production (tonnes) 710 1,229 789 Total revenue (USD thousand) 130,355 151,701 161,797 Profit (Loss) - (USD thousand) (4,558) (492) 46,540 Planet Intensity of energy usage (GJ/USD million) 403.6 390.6 349.4 Intensity of water usage (M3/Ton FFB) 1.31 1.35 1.34 Scope 1 emission intensity (Ton CO2 eq/Ton CPO) 4.88 4.74 5.58 Scope 1 emission reduction (percentage compared to baseline) -19.0% -18.7% -19.4% Area of High Conservation Value areas (hectares) 58,390 58,390 52,813 Number of IUCN Red List Threatened Flora Species 33 18 15 Number of IUCN Red List Threatened Fauna Species 64 41 37 People Employee training hours 43,860 61,457 48,440 Work accident 95 43 23 Work incident 8 11 9 Local workforce 5,221 4,630 4,492 Number of smallholder partners (Oil palm) 3,180 3,203 3,362 Number of smallholder partners (Edamame) 42 37 91 PT Austindo Nusantara Jaya Tbk. | Sustainability Report 2019 3 PROLOGUE ABOUT PT. AUSTINDO NUSANTARA JAYA TBK. PROSPERITY-ECONOMIC PERFORMANCE AWARDS RECEIVED IN 2019 AWARDS 2019 01. Estate/Holding: SMM 02. Estate/Holding: PMP Name of Award: Name of Award: “Sorong Customs Award 1.0” as the Runner-up in Occupational Health and Safety biggest import tax payers in 2018 (Keselamatan dan Kesehatan Kerja/K3) management Date: March 13, 2019 Date: February 7, 2019 Issuer: Customs and Excise Supervision and Service Issuer: Provincial Government of Bangka Belitung Office, City of Sorong 03. Estate/Holding: ANJ 04. Estate/Holding: ANJAP Name of Award: PR Excellence Awards 2019 for Name of Award: Outstanding Corporate Innovator Corporate Social Responsibility Program “Matahariku: (OCI) Indonesia Award Finalist. Competitive Edge: Menggapai Cita dan Harapan untuk Generasi Kuat dan Accelerating Growth in Industry 4.0 through Product Unggul” Innovation Date: April 3, 2019 Date: June 20, 2019 Issuer: Indonesian Public Relations Association Issuer: PPM Management, Product Development & (Perhimpunan Hubungan Masyarakat Indonesia - Management Association, and SWA Magazine Perhumas) 05. Estate/Holding: SMM 06. Estate/Holding: ANJA Name of Award: Award from the Central Bureau of Name of Award: First winner of Green Industry Statistics of the Province of Bangka Belitung to SMM competition for providing quality industrial statistical data Date: August 13, 2019 Date: July 2019 Issuer: Environmental and Hygiene Agency, Paluta, Issuer: Central Statistics Agency, Bangka Belitung North Sumatra Province 4 PT Austindo Nusantara Jaya Tbk. | Sustainability Report 2019 PLANET-STEWARDSHIP OF NATURAL RESOURCES & MANAGEMENT OF THE ENVIRONMENT PEOPLE-HUMAN WELL-BEING CROSS-REFERENCE 07. Estate/Holding: KAL 08. Estate/Holding: PMP Name of Award: Recognition of Contributions to Name of Award: Ministry of Health Award 2019 for the Advance Conservation for People and Nature participation and support in CSR Program for Health of Mother and Child category Date: September 19, 2019 Date: November 13, 2019 Issuer: The Nature Conservancy Issuer: Ministry of Health Republic of Indonesia 09. Estate/Holding: ANJ 10. Estate/Holding: SMM Name of Award: Tempo Country Contributor Award Name of Award: Appreciation for Social and 2019 for PT Austindo Nusantara Jaya Tbk, as one of the Environmental Responsibility Programs and the Most Compliant and Best Corporate Taxpayers Partnership and Community Development Program Date: November 15, 2019 Date: November 2019 Issuer: Pusat Data & Analisis Tempo (PDAT - Tempo Issuer: Governor of Bangka Belitung Media Group) & Center for Indonesia Taxation Analysis (CITA) 11. Estate/Holding: SMM 12. Estate/Holding: ANJ Name of Award: Environmental Literacy Synergy Name of Award: “Gold Rank” for Sustainability Report Award as a Company that contributes to the by Asia Sustainability Reporting Rating (ASRRAT) Conservation of Biodiversity and the Nursery of 2019 with the theme “Consolidating Resources for Tamarind (Tamarindus indica) in 2019 Responsible Development” Date: November 21, 2019 Date: November 26, 2019 Issuer: Governor of Bangka Belitung Issuer: National Center for Sustainability Reporting (NCSR) and Institute of Certified Sustainability Practitioners PT Austindo Nusantara Jaya Tbk. | Sustainability Report 2019 5 PROLOGUE ABOUT PT. AUSTINDO NUSANTARA JAYA TBK. PROSPERITY-ECONOMIC PERFORMANCE 13. Estate/Holding: AANE 14. Estate/Holding: KAL Name of Award: Annual Financial Statement Name of Award: Annual Financial Statement Award (LKTP) for Commitment and Compliance in Award (LKTP) for Commitment and Compliance in the submission of the Company’s Annual Financial the submission of the Company’s Annual Financial Statement regularly, punctually and accurately Statement regularly, punctually and accurately Date: December 4, 2019 Date: December 4, 2019 Issuer: Ministry of Trade Republic of Indonesia Issuer: Ministry of Trade Republic of Indonesia 15. Estate/Holding: SMM 16. Estate/Holding: ANJAP Name of Award: Annual Financial Statement Award Name of Award: Annual Financial Statement Award (LKTP) for Commitment