Sustainability Report 2016
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SUSTAINABILITY REPORT 2016 1 BUILDING INDONESIA Successful growth is not supported by monetary investment and performance alone. It is only possible thanks to the exceptional people who work at BNBR. It is their passion, expertise, and the values their represent that makes us the company we are today. These values of teamwork, ethics and excellence define BNBR's approach to our work for customers as well as our interaction between colleagues, business partners, local community and other stakeholders. Sustainability presents one of the biggest opportunities for BNBR to create and to deliver value to the community we serve where ever we operate. As well as helping to drive operational efficiencies, attract top talent and boost productivity. We are committed to consistently deliver value to customers, investors and all stakeholders by embedding sustainability across our service lines and operations. We are committed to help support the local communities where we operate. We are committed in Building Indonesia. BUILDING INDONESIA 2 SUSTAINABILITY REPORT 2016 TABLE OF CONTENTS ABOUT 4 BNBR 5 Business Lines 6 Company Milestones 8 Corporate Profile 12 Structure of Corporate Group 14 Operational Area 16 BNBR in Numbers 17 Awards & Certifications CEO 18 MESSAGE ABOUT THIS 20 REPORT 21 Reporting Principles 21 Reporting Structure 21 Reporting Period 21 Report Scope and Limitations 21 Report Content and Determination Process 21 Suggestion and Feedback STAKEHOLDER 22 AND MATERIALITY 23 Stakeholder Engagement Method 24 Materiality Determination 26 Material Aspect Identification & Report Boundary PT BAKRIE & BROTHERS TBK 3 CORPORATE RESPECTING OUR OCCUPATIONAL 28 GOVERNANCE 44 EMPLOYEES 60 HEALTH & SAFETY 29 Corporate Governance 45 Our Employees 61 Occupational Health Charter 47 Remuneration And Safety (OHS) 30 Governance Framework 48 Training and Development 61 OHS Policies 30 Business Ethic and 48 Employee Rights 62 OHS Committee Code of Conduct 49 Health and Safety 62 OHS Performance 32 Risk Management 49 Employee Pension Fund 63 OHS Trainings 33 Internal Control System and Cooperatives 63 Occupational Health 33 Whistleblowing System 35 Anti-Corruption Measure, Training and Socialization COMMUNITY GRI STANDARD 50 EMPOWERMENT 64 SUSTAINABLE 51 Corporate Social ECONOMIC Responsibility Vision 36 and Mission MANAGEMENT PERFORMANCE 52 Implementation 38 BNBR Support in of ISO 26000 68 PROFILE Actualizing Indonesia’s 54 Our Devotion for The National Development Plan Nation, for Indonesia 38 The Contribution to the National Income Through Tax 38 Supporting Indonesia ENVIRONMENT Development 56 39 Sustainable Partnership with Suppliers 57 Environmental Commitment And Certification 39 Goods, Services and Operational Business 57 Environmental Responsibility Management Program 43 Relationship Management 57 Water Conservation & Customer Satisfaction And Management Assessment 58 Electricity And Fuels Usage 43 Maintaining Effectiveness 58 Emission Control and Efficiency of Operational Activities 58 Waste Management 43 Continuous Improvement 59 Environmental Monitoring Program 59 Environmental Social Responsibility Program TABLE OF CONTENTS BUILDING INDONESIA 4 SUSTAINABILITY REPORT 2016 PT Bakrie Solusi Strategis' commitment to maintain orderly employment administration has motivated me to remain dedicated to the company. Widya Anggreni Payroll Manager PT Bakrie Solusi Strategis Years of Service: 9 years ABOUT BNBR PT BAKRIE & BROTHERS TBK 5 ABOUT PT BAKRIE & BROTHERS TBK PT Bakrie & Brother, Tbk (BNBR) has been actively contributing in building Indonesia through the manufacturing and infrastructure sector for 75 years. BNBR acknowledges the importance of sustainable business that enables our company to provide added value to our stakeholders and lasting benefit for the local community where we operate, and for the people of Indonesia BUSINESS LINE We have multiple line of businesses, including mining, manufacturing and general trading. Our business line's portfolio includes: [102-2] Infrastructure PT Bakrie Indo Infrastructure Head Office Bakrie Tower 34th Floor, Jl H.R Rasuna Said, Jakarta Selatan 12940, Indonesia Tel : (62 21) 299 12345 Fax : (62 21) 299 41955 http://www.bakrie-brothers.com/#/our_ business/infrastructure_projects Manufacturing PT Bakrie Building Industries Jl. Daan Mogot Km 17,3 Jakarta 11850, Indonesia Tel : (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 Tel : (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 Tel : (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 Tel : (62 21) 2994 1270 Fax : (62 21) 2994 1267–68–69 www.bakrie-pipe.com ABOUT PT BAKRIE & BROTHERS TBK BUILDING INDONESIA 6 SUSTAINABILITY REPORT 2016 COMPANY MILESTONES 2007-2008 • UNSP expanded its and to 107,000 ha valued at US$110 million. • BTEL initiated national expansion worth US$72 million • BNBR acquired ELTY, ENRG, & BUMI, at US$4.4 billion. • BUMI acquired Herald Resources, 1990-1996 2002-2003 valued at US$547 1942-1962 • Initial Public Offering million. • BUMI acquired • Established as a (IPO) of UNSP. • ELTY purchased additional 20% shares general trading & • Licensed to operate 75.04% shares of of PT Arutmin Indonesia. distributor company. fixed wireless Alberta Utilities • BUMI acquired 100% • Pioneered Indonesia's telecommunication at US$2 milion. ownership of PT Kaltim Steel Pipe services. • BUMI acquired 44% Prima Coal (“KPC”) Manufacturing • Founded PT Bakrieland shares of DEWA at at US$500 million. Industry. Development (“ELTY”). US$218 million. 1986-1989 1997-2001 2004-2006 • Acquired PT Bakrie • Founded PT Energi Mega • PT Bakrie Telecom Sumatera Plantations Persada (“ENRG”). (“BTEL”) conducted IPO (“UNSP”). • PT Bumi Resources and obtained national • Initial Public (“BUMI”) acquired 80% operation license. Offering (IPO) shares of • BTEL launched of BNBR. PT Arutmin Indonesia. CDMA based • PT Bakrie Capital telecommunication Indonesia acquired service. 58.1% shares of BUMI. • ENRG bought 100% shares of BP. PT BAKRIE & BROTHERS TBK 7 2010 • Signed an SPA agreement with Vallar, UK worth US$844 million. • Founded Bakrie 2015 Connectivity data • Official Inauguration of services. 2012 PT. Bakrie Pipe Industries’ • ELTY acquired 51% • BNBR completed coating plant. shares of PT Bukit transaction of • PT Kalimantan Jawa Gas Jonggol Asri at US$111 divestment upon some ("KJG") started coating million and 20% shares ownership in Bumi plc. its pipes. of PT Bukit Sentul • Signed Gas • Kalija Phase 1 Infrastructure at US$17 million. Transportation Project started its gas • BUMI acquired 24% Agreement (GTA) for transportation. shares of PT Newmont Kepodang- Tambak • Visit from the Ministry of Nusa Tenggara at Lorok section. Public Work and Housing for US$225 million. • Signed of Assets CCTW Project groundbreaking. • ELTY acquired Lido Purchase of KG- • Preparation stage of Tanjung Lake Resort (99.99% Technology by Jati A power plant project is of ownership) at PT Bakrie Tosanjaya approaching completion. US$39 million. (BTJ). 2009 2011 2013-2014 2016 • BNBR completed • BUMI acquired 84% • PT Bakrie Pipe • Cimanggis-Cibitung Tollways revitalization process, of Pendopo Energi Industries (BPI) Project continues land including the quasi Batubara, valued at awarded with acquisition process as well reorganization. US$117 million. significant pipe supply as phase 1 construction. • ENRG acquired • ENRG signed contract by Pertagas • First phase of Kalija project Offshore North agreement to purchase and Pertamina EP has fully operated. Gas West Java block at 10% stake in Masela • BTJ changed its transportation carried US$212 million. PSC Block, valued name to PT Bakrie out according to GTA. • Bakrie group at US$90 million. Autoparts (BA) established strategic • BUMI acquired • Phase 1 of Kalija partnership with BORN 76.8% of PT Fajar infrastructure and decreased debts Bumi Sakti, valued project initiated. at US$222 million. by US$1 billion. ABOUT PT BAKRIE & BROTHERS TBK BUILDING INDONESIA 8 SUSTAINABILITY REPORT 2016 CORPORATE PROFILE [102-1][102-2][102-3][102-4][102-5][102-6] Name : PT Bakrie & Brothers Tbk : 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 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) Operational Area : Throughout the Indonesian region Number of Employees : 4,236 (as of December 2016) : - Credit Suisse AG Singapore Branch S/A Bright Ventures Pte Ltd (MOU Facility) 20.87% - BNYM S/A Mackenzie Cundill Recovery FD-2039924282 8.79% Shareholders - Interventures Capital Pte. Ltd. 4.96% - Public ( less than 5 % ) 70.33% PT BAKRIE & BROTHERS TBK 9 CORPORATE VISION & MISSION VISION [102-16] MISSION [102-16] To become a leading To maximize shareholder