Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Use of recycled aluminum ash to enhance production efficiency and minimize negative environmental impact.
• Maximized use of eco-friendly natural gas in smelting and heating processes.
• Thorough waste handling to avoid environmental contamination and regular UKL/UPL reporting.

Social Achievements

• Equal employment opportunities regardless of gender.
• Workplace safety promotion through PPE and safety training, resulting in a 3% average employee turnover rate.
• Employee welfare initiatives including health insurance and facilities.
• Internship opportunities for vocational school and university students.
• Corporate Social Responsibility initiatives costing approximately Rp 100 million, including blood drives, disaster relief donations, and community support.

Governance Achievements

• Consistently adopting Good Corporate Governance (GCG) practices.
• Establishment of an Audit Committee.
• Regular Board of Commissioners and Board of Directors meetings.

Climate Goals & Targets

Environmental Challenges

• Decreased production utilization for aluminum sheet and foil.
• Export revenue below historical levels due to global conditions and Covid-19.
• Fluctuation of aluminum prices and other macroeconomic factors.
• Competition from subsidized exporters (China).
• Supply chain disruptions and raw material price fluctuations.
• Substitution products (steel, stainless steel, zinc, plastic).
• Credit and liquidity risks due to global commodity crisis.
• Environmental risks related to waste generation and regulatory changes.
• Foreign currency fluctuation risks due to bank loans in foreign currency.
• Government policy changes affecting import duties.

Mitigation Strategies

• More selective and timely purchases.
• Structured and routine machine repair and maintenance.
• Attracting strategic investors.
• Capacity expansion for production cost efficiency.
• Improved quality control, product diversity, delivery, services, and distribution.
• Reduced dependence on single suppliers.
• Maintaining good relationships with suppliers.
• Promoting product quality and characteristics.
• Full support from Maspion Group and commitment from controlling shareholders.
• Precautionary principle in waste treatment management.
• Balancing assets and liabilities currencies and minimizing foreign exchange exposures.
• Maintaining good relationships with customers, other players, and the government.
• Maintaining production and expense efficiency.

Supply Chain Management

Responsible Procurement

• Maintaining good relationships with various suppliers, both domestic and foreign.

Climate-Related Risks & Opportunities

Awards & Recognition

• Primaniyarta Award (2001, 2007, 2010)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Improved efficiency in production by reusing aluminum ash as raw material
• Maximized use of eco-friendly natural gas in melting and heating processes
• Careful waste handling to avoid environmental pollution, regular UKL/UPL reporting

Social Achievements

• Equal opportunities in employment regardless of gender
• Workplace safety measures and training
• Employee welfare facilities
• Internship opportunities for students
• Regular mass blood donation drives
• Social contributions to communities affected by natural disasters
• Distribution of basic necessities to underprivileged communities

Governance Achievements

• Consistently adopting Good Corporate Governance (GCG) practices
• Establishment of an Audit Committee
• Regular Board of Commissioners and Directors meetings
• Internal Audit Unit actively monitoring internal control systems and risk management

Climate Goals & Targets

Environmental Challenges

• Weak export demand (36.8% in 2023 vs 43.9% in 2022)
• Weak local sales (USD 35.9 million in 2023 vs USD 45.2 million in 2022)
• Low factory utilization due to weak demand and high production costs
• Unstable global economic conditions leading to significant losses
• Competition from China, Vietnam, and Thailand
• Fluctuating raw material prices and supply
• Limited credit facilities due to the metal industry's declining perspective
• Risk of changes in government policies regarding import duties

Mitigation Strategies

• Approaching the government for protection of the domestic aluminum industry through anti-dumping and safeguard measures
• Seeking potential investors to increase capital for product development, raw material procurement, marketing, and operational control
• Exploring opportunities to obtain new customers and markets
• Streamlining operations, including workforce reduction and product line adjustments
• Maintaining good relationships with customers, government, and other companies in the same field
• Diversifying suppliers to reduce dependence on a single source
• Improving quality control, cost efficiency, product diversity, delivery, service, and distribution capabilities
• Maintaining a balance of currencies between assets and liabilities to minimize exposure to foreign exchange rate differences
• Full support from the Maspion Group and commitment from controlling shareholders

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Primaniyarta Award (2001, 2007, 2010)