Driving Environmental Sharing People Driving Occupational Health About Sustainability with Nation PT Angkasa Pura I (Persero) and Safety This Report PT ANGKASA PURA 1 (PERSERO) 2019 Sustainability Report 1 Report of the Overview of About PT Angkasa Pura I Spurring Economic Driving Governance Board of Directors Sustainability PT Angkasa Pura I (Persero) (Persero) & Sustainability Growth Sustainability Table of Contents THEME DEFINITION 1 Precautionary Principle or Approach 103 Community Relocation 103 Report OF THE Board OF Directors 2 Environmental Certification 105 Environmental Activities 106 OVERVIEW OF SustainabiLITY 6 MoU with WWF 107 Financing the Environment 107 ABOUT PT Angkasa PURA I (PERSERO) 8 Name of the Organization 10 SHARING WITH NATION 108 Business Line 11 Vision and Mission 110 Scale of the Organization 15 Partnership Program 111 Milestones of PT Angkasa Pura I (Persero) 16 Soft Loans 111 Coaching Grants 112 PT ANGKASA PURA I (PERSERO) AND Community Development Program 114 SUSTAINABILITY 18 Fostered Village Program 116 Awards and Certifications 22 Tourism Infrastructure Development 117 Significant Events 44 Other CSR Assistances 118 Fund and Awards 119 Spurring ECONOMIC GROWTH 46 Economic Values 49 PeopLE PT Angkasa PURA I (PERSERO) 120 Passenger 50 Human Capital Policy 122 Flight 54 Human Capital Management Strategy 122 Cargo 55 Framework Supply 58 Composition of Employees 124 Customer Service 58 Employee Recruitment and Turnover 125 Airport Facilities 60 Equality and Diversity 128 Customer Experience 66 Employee Remuneration 129 Measurement of Customer Satisfaction 68 Pre-Retirement Training 130 Objective of Program 68 Retention After Maternity Leave 131 Scope and Implementation of Program 69 Collective Labor Agreement 131 Airport Service Quality 70 Employee Development 132 Product Marketing and Information 73 Performance Assessment 135 Compliance with Regulations 73 DRIVING OCCUPATONAL HEALTH AND SAFETY 136 DRIVING GOVERNANCE SustainabiLITY 74 Safety, Security, and Comfort 138 Motto 76 OHS Policies 139 Vision & Mission 76 OHS Management Structure 140 Values 77 OHS Program 141 Governance Structure 78 OHS Joint Committee 144 GCG Initiatives 82 Health and Safety Topics in Formal Agreements 145 Code of Conducts 82 Occupational Safety 145 Whistleblowing System 83 Occupational Diseases 147 Anti-Corruption and Anti-Gratification 84 Safety Management System 147 Gratification Control 88 Safety and Security of Customers 150 Roadmap of Company’s Transformation 89 OHS Socialization and Practice 151 Wildlife Strikes 151 DRIVING ENVironmentaL SustainabiLITY 90 Energy Consumption 94 About THE Report 152 Reduction Initiatives in the Energy Use 95 Boundary and Material Aspect Identification 154 Emission 95 Stakeholders 157 GHG Emission Mitigation Program 96 Water 96 Statement GRI Standards Waste 97 IN Accordance Check 159 Air Quality 99 Independent ASSURANCE Statement 160 Noise 100 SDGS LINK IN THE GRI Standard 162 Storm Water Quality 102 INDEX GRI Standards Option - CORE 169 PT ANGKASA PURA 1 (PERSERO) 2 2019 Sustainability Report Driving Environmental Sharing People Driving Occupational Health About Sustainability with Nation PT Angkasa Pura I (Persero) and Safety This Report TOWARD A SUstAINABLE AIRPORT OPERATOR Customer and passenger satisfaction is our main goal, without neglecting the principles of sustainability that prioritizes environmental sustainability and concern for the community, while increasing company profitability. During 2019, we managed 14 airports serving flights to numerous routes, both domestic and international routes. Various technological advancements and improved service quality have led PT Angkasa Pura I (Persero) to become one of the largest airport management companies in Asia. Our commitment to sustainability is demonstrated by our endeavours to build a green airport that is environmentally friendly and convenient for service users. Throughout 2019, PT Angkasa Pura I (Persero) has served 81,532,700 million passengers, 707,202 air traffic, and 427,135,421 kg of cargo. Our Long-Term Company Plan (RJPP) will enhance the performance of PT Angkasa Pura I (Persero) to become an airport service provider that meets the international standards and prioritizes service optimization. This includes a strategic plan in the area of sustainability, making PT Angkasa Pura I (Persero) a Company that cares about the environment and social while continuing to increase profitability economically. We believe that our attempts to support the achievement of the Sustainable Development Goals will not only strengthen our business and portfolio, but will also make the services of PT Angkasa Pura I (Persero) accessible to future generations. “Toward Sustainable Airport Operators” becomes our commitment in developing PT Angkasa Pura I (Persero). PT ANGKASA PURA 1 (PERSERO) 2019 Sustainability Report 1 Report of the Overview of About PT Angkasa Pura I Spurring Economic Driving Governance Board of Directors Sustainability PT Angkasa Pura I (Persero) (Persero) & Sustainability Growth Sustainability Report of the Board of Directors 01 [GRI 102-14] PT ANGKASA PURA 1 (PERSERO) 2 2019 Sustainability Report Driving Environmental Sharing People Driving Occupational Health About Sustainability with Nation PT Angkasa Pura I (Persero) and Safety This Report We are committed to implementing the principles of an eco-airport and the principles of sustainable enterprise “ in the operation and advancement of the airports managed by PT Angkasa Pura I (Persero). ” PT ANGKASA PURA 1 (PERSERO) 2019 Sustainability Report 3 Report of the Overview of About PT Angkasa Pura I Spurring Economic Driving Governance Board of Directors Sustainability PT Angkasa Pura I (Persero) (Persero) & Sustainability Growth Sustainability The Honorable the stakeholders, quality, but also seeks to create an atmosphere of Indonesian hospitality within the airport All praise and thanks be to God Almighty by His environment. blessings PT Angkasa Pura I (Persero) could go through 2019 with a very good performance. In this report, we would like to demonstrate our economic, ECONOMIC PERFORMANCE social, and environmental performances. The In 2019, we recorded operating income of principles of sustainability are our guideline in Rp8.63 trillion or up 1.3% compared to operating operating the Company and in striving to reach our income in the previous year that was Rp8.52 trillion. long-term plans. Meanwhile operating expenses increased by 5.39% compared to the previous year where in 2018 We are aware that the development and operating expenses were recorded in the amount management of airport conducted by PT Angkasa of Rp5.5 trillion, while in 2019 the amount increased Pura I (Persero) must bring social benefits as well to Rp5.9 trillion. Value of Profit Business 2019 as environmental benefits for the community was recorded at Rp2.725 trillion or decreased by around the airport. Therefore, to anticipate long- Rp191.63 billion compared to 2018 of Rp2.916 trillion. term environmental impact, we are committed The diminution was triggered by assorted factors, to applying eco-airport principles and sustainable one of which was the decrease in the number of corporate principles in the operation and passenger due to the increase in plane ticket prices. development of airports managed by PT Angkasa Pura I (Persero). Our commitment is to evolve the Company into a “Sustainable Airport Operator”. ENVIRONMENTAL PERFORMANCE The environmental issues are currently a concern Throughout 2019, we managed 14 airports, of the business world, as business continuity connecting cities in Indonesia and abroad. The depends on environmental sustainability. For facilities at the airport and the commitment the aviation service industry, weather changes to provide excellent services have led us to the may affect flights and eventually affect our achievement of awards both at national and productivity. To that end, PT Angkasa Pura I international levels. These achievements proved (Persero) implemented environmentally friendly that PT Angkasa Pura I (Persero) has become one operational practices to realize the eco-green of the best airport management company in Asia. airport at all our airports. We continue to expand our business throughout PT Angkasa Pura I (Persero) was applying the Indonesia by managing new airports, such as international standard ISO 14001: 2014/SNI 19-14001: Yogyakarta International Airport in Kulon Progo. 2005 concerning Environmental Management This development was accompanied by an increase Systems at airports managed by the Company. in quality. Thus, PT Angkasa Pura I (Persero) is an The company continues to strive to obtain airport service provider that does not only prioritize environmental certification, our airports have technology and international standard service PT ANGKASA PURA 1 (PERSERO) 4 2019 Sustainability Report Driving Environmental Sharing People Driving Occupational Health About Sustainability with Nation PT Angkasa Pura I (Persero) and Safety This Report obtained airport carbon accreditation and green During 2019, the amount of funds distributed building certificates. Further, we adhere to the 3R to the progress of our fostered partners was principle (Reduce, Reuse, Recycle) to reduce waste. Rp1,852,959,233. The funds and assistance that we provide have been proven to increase the income Our commitment towards the environment is the of our partners. We also promote various local reduction of GHG emissions by 820 Tons of CO2 tourism destinations through