Climate Change Data

PT Indomobil Multi Jasa Tbk

Climate Impact & Sustainability Data (2021, 2022)

Reporting Period: 2021

Environmental Metrics

Waste Generated:[object Object]

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Fleet with age ≤ 4 years 9%
  • All fleets passed emission tests
  • Go green campaigns through saving paper usage
  • Energy and water saving policies
  • Socialization of environmentally friendly driving

Social Achievements

  • IMFI Virtual Expo Anniversary (IVORY)
  • Advance Tracking System in logistic business unit
  • Development of mobile applications for consumers
  • Providing vaccination centers in 8 cities in Indonesia
  • Social and Community Empowerment Cost (Rp) million 396

Governance Achievements

  • Consistent implementation of Good Corporate Governance (GCG)
  • Annual public expose
  • Update website periodically
  • Dissemination of information through press release to stakeholders
  • Implementation of a comprehensive “IMJ Trust” system

Climate Goals & Targets

Environmental Challenges

  • Risk of increasing fuel prices, continuous fluctuations in fuel prices or reducing government fuel subsidies
  • Risk of the Company's inability to obtain funding on commercially reasonable terms or not obtaining funding at all
  • Risk of default by customers of the Company's vehicle financing
  • Risk of intense competition
  • Risk of inability to cover the collateral value or to pay off unpaid balance based on the financing agreement that fail to meet the maturity date
  • Risk of limited independent information related to the credit history and status of prospective vehicle financing customers
  • Risk of the vehicle rental business with characteristics of high fixed cost
  • Risk of dependence on the management team and employees
  • Risk of dependence on the business activities and revenues of the Company's Subsidiaries
  • Risks related to vehicle procurement for the CSM fleet and potential recall of vehicles
  • Risk of inability to properly maintain customer satisfaction and loyalty
  • Risks related to the residual value of the rental vehicle
  • Risk of downgrading the Company's credit rating
  • Risk of technological change
  • Risk of interest rate fluctuations on the demand for vehicle financing
  • Risk on monetary policy
  • Risk of exchange rate changes
  • Legal risk
  • The risk of dependence of the automotive industry in Indonesia on general economic and market conditions in Indonesia
  • The risk of provisions for restrictions on share ownership for foreign parties that apply to the motor vehicle financing and rental business in Indonesia
  • Risk of compliance with applicable laws and regulations related to the Company's line of business
  • International legal risks
Mitigation Strategies
  • Careful credit distribution scheme
  • Adequate credit analysis
  • Various billing mechanisms
  • Diversification of funding through a number of instruments
  • Reviewing operational systems and procedures
  • Formulating Standard Operational Procedure (SOP)
  • Improving collaboration with distributors and dealers
  • Innovative financing package
  • Consistently monitoring economic indicators
  • Diversification of funding sources
  • Hedging strategies
  • Monitoring and examining the impact of monetary policy
  • Diversification of funding sources
  • Hedging policies - cross currency swap transactions and interest rate swaps

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

  • Indonesia GCG Award 2021
  • Indonesia Most Acclaimed Companies Awards 2021
  • Indonesia Excellence Acclaimed Company
  • Indonesia Enterprise Risk Management Award 2021
  • Bank Indonesia Award 2021
  • Indonesia Award Perempuan Pemimpin Indonesia
  • Iconomics Multifinance Awards 2021
  • Best Safety Performance Hauler 2020
  • Indonesia Best Multifinance Awards 2021
  • Indonesia Corporate Secretary & Corporate Communication Award 2021
  • Indonesia Human Capital Award 2021
  • Indonesia Finance Award 2021

Reporting Period: 2022

Environmental Metrics

Waste Generated:[object Object]

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Reduced liquid waste produced from 12,480 to 10,515
  • Reduced hazardous waste produced from 8,681 to 8,956
  • Increased environmentally friendly fleet portfolio (INDORENT) from 12% to 17%
  • Increased fleet with age ≤ 4 years from 77% to 78%
  • Reduced paper usage from 3,702 to 3,775 reams
  • Reduced electricity usage at operational offices from 3,808 to 3,947 million Rupiah

Social Achievements

  • Increased training participants from 3,717 to 6,297
  • Increased training hours from 11,311 to 42,812
  • Improved IEU customer satisfaction index from 90% to 91.4%
  • Improved INDORENT customer satisfaction index from 98% to 98%
  • Improved IMFI & IET customer satisfaction index from 98% to 98%

Governance Achievements

  • Held Annual General Meeting of Shareholders (AGMS) on July 27, 2022
  • Implemented Good Corporate Governance (GCG) principles
  • Established a Whistleblowing System (IMJ Trust)
  • Established an anti-corruption and anti-fraud policy
  • Established a Code of Conduct

Climate Goals & Targets

Environmental Challenges

  • Risk of increasing fuel prices and fluctuations
  • Risk of inability to obtain funding
  • Risk of customer default on vehicle financing
  • Risk of intense competition
  • Risk of inability to fully recover collateral value
  • Risk of limited information on customer credit history
  • Risk of high fixed costs in vehicle rental business
  • Risk of dependence on management and employees
  • Risk of dependence on subsidiary performance
  • Risk of vehicle procurement and recall
  • Risk of maintaining customer satisfaction and loyalty
  • Risk of reliance on existing long-term lease contracts
  • Risk of declining residual value of rental vehicles
  • Risk of credit rating downgrade
  • Risk of technological change
  • Risk of interest rate fluctuations
  • Risk of monetary policy changes
  • Risk of exchange rate changes
  • Risk of legal issues
  • Risk of dependence on Indonesian economic conditions
  • Risk of foreign ownership restrictions
  • Risk of compliance with regulations
  • Risk of international legal issues
Mitigation Strategies
  • Careful credit disbursement and strict credit schemes
  • Multi-level collection mechanisms (SMS, phone calls, visits)
  • Vehicle repossession and assistance in resale
  • Funding diversification (bank loans, syndicated loans, bonds)
  • Review and adjustment of operational systems and procedures
  • Development of innovative financing packages
  • Maintaining rental volumes and competitive pricing
  • Fleet size adjustment to customer demand
  • Aggressive expansion to broaden sales and service reach
  • Consistent monitoring of economic indicators
  • Diversification of funding sources and hedging strategies
  • Monitoring and analysis of monetary policy impact
  • Hedging strategies (cross currency swap, interest rate swap)

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GCG Principles

Awards & Recognition

  • Indonesia Information & Technology Award 2022 (Gold)
  • Indonesia Sales & Marketing Award 2022 (Platinum)
  • Indonesia Corporate Secretary & Corporate Communication Award 2022 (Gold)
  • Indonesia Most Acclaimed Company 2022 (Outstanding Financing Business Development)
  • Indonesia CSR Award 2022 (Outstanding Program in Supporting Communities Basic Needs)
  • Indonesia Human Capital Award 2022 (Platinum)
  • Indonesia Best Multifinance Awards 2022 (Silver)