Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced gas consumption by approximately 9.2 percent.
• All five factories received the 2022 Green Industry Award from the Ministry of Industry of the Republic of Indonesia.
• Installation of photovoltaic solar power plants started at Plant V and Plant II.

Social Achievements

• Community Development and Corporate Social Responsibility programs encompassing more than 195 activities.
• Arwana Jaya Table Tennis Club participated in tournaments almost monthly.

Governance Achievements

• Received an Unqualified Opinion from the public accounting firm Purwantono, Sungkoro and Surja for the Company’s 2021 financial statements.
• Implemented Good Corporate Governance (GCG) principles.

Climate Goals & Targets

Environmental Challenges

• Significant depreciation of the Rupiah, impacting production costs (40% related to foreign currency).
• Increased diesel oil prices leading to higher clay and shipping costs.
• Increased interest rates and low state budget absorption impacting public purchasing power.
• High inflation due to global energy and food crisis.
• Decreased government spending negatively impacting absorption of local ceramic products.

Mitigation Strategies

• Improvements to product mix, launching products aligned with market preferences and high added value.
• Expansion of the supply chain for raw materials.
• Innovation in raw material formulas to counteract the effects of Rupiah depreciation.
• Adjusting product mix and conducting thorough market analysis to identify marketable products.
• Production of larger-sized ceramic floor tiles for the middle-to-upper market segment.
• Venturing into middle-to-upper commercial projects with ARNA glazed porcelain tiles.
• Construction of Plant 5C and Plant 4C to increase production capacity.

Supply Chain Management

Responsible Procurement

• Improvements to the supply chain for raw materials.
• Sourcing with more competitive suppliers and raw materials.

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• Climate Action (Goal 13)
• Responsible Consumption and Production (Goal 12)
• Industry, Innovation and Infrastructure (Goal 9)
• Decent Work and Economic Growth (Goal 8)

Sustainable Products & Innovation

• ARNA glazed porcelain tiles.
• UNO ceramic wall tiles (30x60cm).

Awards & Recognition

• 2022 Green Industry Award (all five factories)
• Forbes Indonesia Best of the Best
• Urbancity Award The Best Ceramic Tile Manufacturer in Indonesia
• Investor Award Best Mid-Cap Stock in the Manufacturing Sector
• Forbes Asia Best Under A Billion
• Investor Award Best Issuer in the Building Equipment and Electricals Sector
• Indonesia My Home Award/Bank & Property Award The Rising Star for Middle-Up Class Housing Projects ARNA