Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environmental Responsibility
• Health and Safety
• Corporate Social Responsibility
• Human Resources

Environmental Achievements

• Upgraded waste management system
• Improved energy efficiencies in head office by setting targets for energy use

Social Achievements

• Introduced Key Performance Indicator (KPI) and balanced scorecard approach to improve performance
• Continued to offer a range of continuous education and training programs
• Provided educational scholarships for the children of employees
• Contributed to improving the quality of life in disadvantaged communities by supporting programs organized by local mosques and by constructing public facilities
• Held Blood Donor drives

Governance Achievements

• Implemented good corporate governance (GCG) principles consistently
• Complied with all applicable laws and regulations of Indonesia, the rules and regulations of the Indonesia Stock Exchange and Bapepam-LK and the generally accepted accounting principles in Indonesia
• Established a corporate governance framework comprising the General Meeting of Shareholders, the Boards, the Audit Committee, the Corporate Secretary, a system of risk management and internal controls, and a Code of Ethics
• Maintained ISO 14001:2004 certification for its environmental management system and OHSAS 18001:2007 certification for its workplace health and safety management system

Climate Goals & Targets

Environmental Challenges

• Relatively subdued investment climate
• Market-wide drop in demand for asphalt in the second half of the year
• Inadequate infrastructure in Indonesia
• Regulatory constraints leading to investment bottlenecks
• Increasing competition and intense price competition in the asphalt market

Mitigation Strategies

• Focused on strengthening its core business as an integrated infrastructure provider
• Won several major contracts
• Increased stake in joint venture companies for toll road development to accelerate procurement processes
• Reviewed human resource planning processes and introduced new initiatives, including key person development and succession planning
• Opened two new Bulk Asphalt Terminals in Kalimantan Tengah and Nusa Tenggara Timur

Supply Chain Management

Responsible Procurement

• Auditing on the safety and environmental practices of suppliers and subcontractors

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GCG principles

Certifications: ISO 14001:2004, OHSAS 18001:2007

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environmental Responsibility
• Corporate Social Responsibility
• Human Resources

Environmental Achievements

• Reduced use of grit and sand in concrete manufacturing by improving mix design.
• Working on processes to recycle waste materials from spun pile production into paving blocks.

Social Achievements

• Contributed to the development and rehabilitation of school infrastructure and donated educational equipment to local schools.
• Organized twice yearly blood donor drives in collaboration with the Indonesian Red Cross.

Governance Achievements

• Implemented a corporate governance framework that ensures accountability, integrity, transparency and compliance.
• Established the Monitoring and Evaluation Division to improve integration between different functions in the organization.

Climate Goals & Targets

Environmental Challenges

• Risk of Business Competition
• Risk of Increased Raw Material Prices
• Currency Fluctuation and Interest Rate Risk
• Risk of Diminishing Projects
• Risk of Payment Failure
• Manpower Risk
• Economic, Social and Political Risk
• Risk of Raw Material Scarcity

Mitigation Strategies

• Strict financial discipline, focusing on maintaining positive cash flow, reducing bad debt and increasing receivables turnover.
• Cost control by driving efficiencies without compromising quality.
• Rigorous internal controls and a strong risk management system.
• Instructed subsidiaries to ask for LC payment for large projects to reduce exposure to bad debt.
• Comprehensive risk assessment of any new project before proceeding.
• Insurance for storage and distribution facilities and most projects during construction.
• Investing in the development of human resources to maintain competitiveness.
• Exploring strategic partnerships with shipping operators to improve flexibility and reliability in distribution.

Supply Chain Management

Responsible Procurement

• Implementation of ISO safety standards as a condition of all contracts with subcontractors.
• Development of quality, safety, health and environment (QSHE) plan before any project.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Lightweight bricks
• Box girder systems

Awards & Recognition

• Performance Construction Award from the Ministry of Public Works

Environmental Metrics

ESG Focus Areas

• Good Corporate Governance
• Environmental Responsibility
• Health and Safety
• Corporate Social Responsibility

Environmental Achievements

• ISO 14000 certification
• Focus on improving waste management and natural resource use efficiency

Social Achievements

• Scholarship program for employees' children and high-achieving students
• Annual blood donation drives
• CSR expenditure of Rp 419 million

Governance Achievements

• Implementation of a comprehensive risk management framework
• Compliance with Indonesian laws and regulations, Indonesia Stock Exchange rules, and Financial Services Authority (OJK) regulations
• Establishment of a corporate governance framework including policies, procedures, and systems for decision-making, accountability, and risk management

Climate Goals & Targets

Environmental Challenges

• Challenging operating environment, rising costs, and a depreciating currency
• Slowing economic growth in Indonesia (just above 5% in 2014)
• Political uncertainty during the election year
• Difficulties associated with land acquisition
• Postponement of several major infrastructure projects due to a 'wait and see' approach by investors and project owners
• Depreciation of the Rupiah against other currencies, especially the US dollar

Mitigation Strategies

• Seeking substitute projects in road repair and maintenance
• Applying back-to-back agreements with subcontractors to maintain positive cash flow
• Leveraging synergies between core businesses
• Careful project selection to secure profitable growth
• Investment in an asphalt tanker to improve procurement flexibility and reduce costs

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Best Issuer in the Trading, Services and Investment Sector from Bisnis Indonesia daily
• Appreciation Award from Exxon Mobil
• Best Asphalt Agent in West Java from PT Pertamina
• Best 50kg Agent 2014, Best Industry Agent (Bulk) 2014, and Best Hydrocarbon Aerosol Propellant Agent 2014 from PT Pertamina (Persero)
• Yale’s Sales Dealer of the Year 2013 in Asia Pacific and Southeast Asia
• Top Revenue Award 2014 from Principal Emerson Network Power
• Brand Ambassador 2014 from Principal Emerson Network Power
• Appreciation for Promoting and Selling Nohmi Products and Services from Principal Nohmi Bosai Ltd

Environmental Metrics

ESG Focus Areas

• Environmental
• Health and Safety
• Labor Practices
• Community Development
• Corporate Governance

Environmental Achievements

• Improved performance on environmental indicators (energy, water consumption, waste output)
• Used steel for molds instead of wood, reducing wood waste and promoting recycling
• Supported Greenship training and certification for engineers, promoting sustainable building practices

Social Achievements

• Improved key safety metrics (incident severity and frequency rates)
• Increased intensity of training and development activities
• Implemented a ‘homecoming’ program for former employees
• Upgraded induction program for new employees
• Provided health benefits for all employees and their families
• Complied with all national and local statutes on minimum wage levels
• Organized blood donor drives
• Donated animals to local communities for Idul Adha
• Contributed to school construction, renovation, and educational supplies

Governance Achievements

• Continuous improvement in the implementation of good corporate governance
• Intensified management of risks and internal controls
• Strengthened compliance with all relevant regulations
• Developed a talent pool system for senior management positions
• Implemented a CSR work plan in compliance with OJK guidance

Climate Goals & Targets

Environmental Challenges

• Concerns about the ability of regional governments to absorb infrastructure budgets
• Increasing competition from state-owned enterprises
• Subdued crude oil price negatively impacting asphalt segment revenues
• Persistent weakness in crude oil price impacting revenues in asphalt and gas trading segments
• Uncertainties regarding US monetary and foreign policy and the Chinese economy
• Risk that government spending will be slower than planned

Mitigation Strategies

• Leveraging synergies within the group to provide comprehensive services
• Significant investments in recruitment and training
• Participating alongside state-owned enterprises in joint operation projects
• Implementing efficiency programs to improve profitability
• Expanding geographical scope of operations (new bulk asphalt terminal in Kalimantan)
• Developing new pre-cast concrete products and expanding production capacity
• Securing participation in major infrastructure projects
• Exploring opportunities in irrigation, dam, and port development
• Strengthening recurring income streams

Supply Chain Management

Responsible Procurement

• Ensuring subcontractors meet specified safety standards

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Steel molds for construction projects

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Occupational Health and Safety
• Labor Practices
• Community Development
• Corporate Governance

Environmental Achievements

• First certified to ISO 14001:2004 standard in 2004 and recently upgraded to the ISO 14001:2015 standard by SGS-ICS Indonesia.
• Reduced EMS audit findings (KPI for Management)
• Use of steel instead of wood for molds, with steel recycled or resold.
• Supporting Greenship training and certification for engineers.

Social Achievements

• Annual contributions to education through the Marga Pembangunan Jaya Foundation.
• Scholarships to high-achieving employees' children.
• Contributions to school construction and renovation.
• Work Experience program for high school and vocational students (PT Jaya Trade Indonesia).
• Support for health promotion activities, orphanages, and mosques.
• Twice-yearly blood donor drives with the Indonesian Red Cross.
• Support for local celebrations and events (Idul Adha).

Governance Achievements

• Continuous improvement of corporate governance systems and practices.
• Strengthened project monitoring to ensure compliance with operational, safety, and quality standards.
• Strengthened IT-based systems for comprehensive control and early issue detection.
• Effective whistleblowing system.
• Annual evaluation of Board of Commissioners and Board of Directors performance.

Climate Goals & Targets

Environmental Challenges

• Intensifying competition, particularly from state-owned contractors.
• Constraints in competing for water-related infrastructure projects due to lack of experience and Ministry of Public Works requirements.
• Pressure to meet urgent requests from the Jakarta City Administration with tight timeframes.
• Lower-than-expected demand for asphalt due to oil price recovery (PT Jaya Trade Indonesia).

Mitigation Strategies

• Participation as a joint operation partner with state-owned companies.
• Collaboration with strategic partners to meet human resource, equipment, and expertise requirements for water infrastructure projects.
• Leveraging synergies with strategic partners for large-scale projects and new capabilities.
• Improving understanding of the market and customer satisfaction to win repeat orders.

Supply Chain Management

Responsible Procurement

• Minimum standards for vendors and subcontractors defined in QSHE plans.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Environmentally friendly Freon products (PT Jaya Teknik Indonesia)
• Precast parapet, tunnel lining, and wall/façade products (PT Jaya Beton Indonesia)

Awards & Recognition

• Best of the Best 2017 Award from Forbes Indonesia
• One of Indonesia’s 100 fastest growing companies (InfoBank Magazine)
• Various Pertamina awards

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Construction of storage sites for hazardous and toxic waste that meet government standards
• Ensuring that hazardous and toxic waste is collected by licensed companies
• Conducting periodic environmental testing in accordance with legal and project requirements
• Adoption of more energy-efficient technologies and ways of working (e.g., biofuels, biomass, solar panels)

Social Achievements

• Creating opportunities for decent employment for local employees, contractors, and suppliers
• Contributing to improving the capacity and quality of human resources in local communities
• Providing and maintaining local infrastructure (roads, bridges)
• Supporting disadvantaged communities through food assistance, sanitation facilities, and regreening

Governance Achievements

• Obtained ISO 37001 Anti-Bribery Management System certification
• Obtained ISO 19650 Building Information Modeling (BIM) certification

Climate Goals & Targets

Environmental Challenges

• Increased competition in the construction sector
• Rising raw material prices due to inflation and supply-demand imbalances
• Currency fluctuation and interest rate risks
• Risk of diminishing projects from existing and new clients
• Risk of payment failure from project owners
• Manpower shortages
• Economic, social, and political risks impacting investment and development
• Raw material scarcity causing project delays and price increases

Mitigation Strategies

• Strengthening collaboration with strategic partners
• Implementing a comprehensive efficiency program (budget control, receivables monitoring, improved work methods)
• Proactive customer selection and management, applying minimum payment terms, and adjusting project execution to owner's financial capabilities
• Developing a dedicated e-Tekind Odoo ERP system
• Anticipating price increases and locking in purchase prices
• Implementing strong inventory management
• Relocating bulk asphalt terminals to more strategic sites
• Developing a portfolio of high-margin complementary products

Supply Chain Management

Responsible Procurement

• Strengthening relationships with suppliers to optimize quality, competitiveness, and reliability

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• SDG 8 (Decent Work and Economic Growth)
• SDG 9 (Industry, Innovation, and Infrastructure)
• SDG 2 (Zero Hunger)
• SDG 3 (Good Health and Well-being)
• SDG 7 (Affordable and Clean Energy)

The company's business activities and CSR programs contribute to these goals.

Sustainable Products & Innovation

• Recycled hotmix
• High-performance polymer asphalt and latex asphalt
• HAP 39 bulk gas