Climate Change Data

PT Satria Mega Kencana Tbk

Climate Impact & Sustainability Data (2020, 2023)

Reporting Period: 2020

Environmental Metrics

ESG Focus Areas

  • Good Corporate Governance
  • Human Capital Development
  • Corporate Social Responsibility
  • Environmental Sustainability

Environmental Achievements

  • Regularly carried out green space maintenance activities, air conditioning system maintenance in hotels, and monitored waste recycling process (Go Green).
  • Encouraged efficient use of emissions, electricity savings, water consumption, tissue, efficient use of chiller machines, and paper reduction.

Social Achievements

  • Provided health insurance through BPJS Ketenagakerjaan dan Kesehatan for all employees.
  • Implemented employee KPI system to monitor employee performance.
  • Provided guidance and promotion to employees.
  • Emphasized a positive work culture and strong synergy between management and employees.
  • Maintained low employee turnover despite economic challenges.

Governance Achievements

  • Established an Internal Audit Unit to oversee the implementation of policies and ensure compliance.
  • Established a Nomination and Remuneration Committee to review and recommend the composition of the Board of Commissioners and Directors.
  • Implemented Good Corporate Governance (GCG) principles throughout the company.
  • Established a Whistleblowing System to report violations confidentially.

Climate Goals & Targets

Long-term Goals:
  • Continue to develop the tourism industry and form integrated tourism areas, especially in Eastern Indonesia.
  • Expand business in Southwest Sumba and Labuan Bajo.
  • Continue feasibility studies to identify market potential in these areas.
Medium-term Goals:
  • Expand market share by implementing selective strategies in prospective markets.
  • Find more potential market segments through market research.
  • Develop recruitment programs and improve HR competence to maintain company sustainability.
  • Improve efficiency and effectiveness of all work units.
  • Develop the mining division for ongoing projects.
  • Collaborate with foreign companies to execute potential projects.
Short-term Goals:
  • Increase the collectability of receivables.
  • Maintain cash flow management system for the future.
  • Improve performance by effective use of funds.
  • Optimize funding sources to support operational activities.

Environmental Challenges

  • Economic uncertainty and the impact of the COVID-19 pandemic on the property and tourism industries.
  • Decreased operating income due to the pandemic's impact on hotel room and F&B sales.
  • Obstacles in realizing landbank development plans due to the pandemic.
Mitigation Strategies
  • Implemented agile and sustainable business strategies to maintain operational and financial stability.
  • Emphasized cost efficiency measures across business units.
  • Sought support from banking partners for loan interest rate reductions.
  • Prepared for a multi-year recovery from the pandemic's economic impact.
  • Focused on quality and cultural development to enhance market competitiveness.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

  • Certificate of Excellence ZenRooms
  • Traveller Review Awards 2020 (Sotis Residence Penjernihan)

Reporting Period: 2023

Environmental Metrics

Total Energy Consumption:1,215,771 KWH
Water Consumption:19,552 M3
Waste Generated:9 tons

ESG Focus Areas

  • Economic Performance
  • Environmental Performance
  • Social Performance
  • Good Corporate Governance

Environmental Achievements

  • All Sotis hotels have minimized plastic usage, such as using metal straws and eco-friendly shopping bags.
  • All Sotis hotels have minimized waste disposal, such as efficient use of amenities and laundry linen.

Social Achievements

  • Distribution of CSR Funds: IDR 24,718,762
  • Employee training programs (various topics, see report for details)
  • No fatal work accidents in 2023.

Governance Achievements

  • Established key components such as Independent Commissioners, Independent Directors, Company Secretaries, and an Audit Committee.
  • Internal Audit Unit overseeing implementation of policies.
  • Nomination and Remuneration Committee reviewing and recommending composition of Board of Commissioners and Directors, as well as a competitive remuneration system.

Climate Goals & Targets

Environmental Challenges

  • Post-COVID-19 recovery process hampered investment plans.
  • Supply chain disruptions (implied)
  • Economic uncertainty (implied)
Mitigation Strategies
  • Implemented cost efficiency programs across all business units.
  • Increased lease expenses for Company assets.
  • Renovation of Hotel Sotis Falatehan Jakarta and Sotis Residence Penjernihan Jakarta.
  • Developed marketing strategies for each hotel unit to achieve business targets.
  • Implemented strict budget and cost control system.
  • Secured (some) long-term loans with fixed interest rates.
  • Hedging strategies for foreign currency exchange rate risk.
  • Prioritized domestic suppliers for Rupiah payments.
  • Implemented best payment terms for receivables and payables.
  • Secured overdraft credits for emergencies.
  • Secured long-term contracts for crucial and high-value input procurement.

Supply Chain Management

Responsible Procurement
  • Commitment to local suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core Option, POJK No. 51/POJK.03/2017

Sustainable Products & Innovation

  • Eco-friendly shopping bags
  • Metal straws