May 2, 2019

Customers have a very big meaning for the Company. In carrying out corporate social responsibility related to responsibility to consumers, AKR always strives to provide the best products and services and always provide clear product information through various media and activities. The Company applies various policies and SOPs to maintain quality and as a form of responsibility to consumers.

AVAILABILITY OF PRODUCT INFORMATION

AKR provides various media for customers to obtain information related to marketed products, so that customers can easily obtain this information, namely through websites, call centers, leaflets, brochures, advertisements in printed media to social media.
Product information presented includes: 1. Product specifications 2. nstructions for use 3. Safety procedures

CUSTOMER SERVICE

AKR Tower Lt.26 JL. Panjang No. 5
Kebon Jeruk
Jakarta Barat 11530,
Indonesia
+62 21 5311110

HANDLING CUSTOMER COMPLAINTS

As a part of product responsibility, the Company has established and provided Vendor Managed Inventory (VMI) in order to efficiently serve consumers, especially in the distribution of non-subsidized fuels and basic chemical businesses. So far, the Company does not sell prohibited or disputed products.

Furthermore, for the benefit of consumers and other stakeholders, the Company and its subsidiaries provide a pathway to submit complaints or questions relating to products and services offered on the Company’s website: www.akr.co.id, and through the telephone numbers listed on each truck owned by the Company. For customers who submit complaints, the Company guarantees confidentiality.

At the Company’s website, consumers and stakeholders can find the address and telephone number of the Company and its subsidiaries that can be contacted. Consumers can also directly contact the Company’s branch offices spread across various cities in Indonesia. The handling of customer complaints is regulated in External Customer Complaints Handling procedures. CRO is given guidance in handling customer complaints, namely the FAQ guidelines (Frequently Asked Question) and Handling of Customer Complaints.

May 2, 2019

The Company is committed and actively organizes a number of activities to realize corporate social responsibility (CSR). The Company realizes that corporate social responsibility is an obligation, as stipulated in Law Number 40 of 2007 concerning Limited Liability Companies.

The Company is well aware that the Company’s existence is part of the general public. The business growth achieved by AKR has also not been separated from the participation of the general public. For this reason, the Company also gives great attention to social development which is manifested in various activities related to the socio-cultural community.

The implementation of corporate social responsibility in the social aspects of the community is directed at programs that are empowering and provide benefits to the community in the locations around the Company.

COMMUNITY SOCIAL ACTIVITIES

IN 2018 In 2018, the Company carried out several CSR activities related to the social-community field, including:

School Renovation

Perseroan CSR in terms of education is executed not only to scholarship but also through improving the quality of infrastructures for teaching and learning activities in schools. One of AKR’s commitments to advancing the world of education in Indonesia is realized by renovating SDN Basirih 6 Banjarmasin. AKR improved education infrastructure in the school by doing roof repairs, replacing ceilings, painting classrooms, painting walls outside the classroom, painting fences and other various jobs. Beside in Banjarmasin, the Company also renovated fences and doors in SDN 010 Palaran (Elementary School)

Mudik Lebaran Posts

During homecoming (mudik) time in the Eid Al-Fitr period in 2018, AKR opened mudik posts in Kendal Regency and Batang Regency, Central Java. The mudik posts provide fuel packaging which is very helpful for travelers who need fuel.
The AKR mudik post was also visited by a group of ESDM National Command Posts led by the Head of BPH Migas who monitored and made site visit related to AKR’s readiness to face Eid al-Fitr 1439 H. Head of BPH Migas together with the ESDM National Command Post Team monitored fuel availability at TBBM Nilam Utara in Surabaya and monitored SPBKB Manyar to review the SPBKB readiness in providing excellent service to the community during the 2018 Lebaran homecoming moment.

May 2, 2019

Organizational planning and Competence Development of Human Resources (HR), is one of management’s responsibilities in order to foster a sense of caring for employees towards the pace of the Company’s business growth. HR is a major asset for the Company, therefore the interests of employees are a top priority that must be met. AKR has a policy to provide equal treatment for all employees both in employment opportunities, remuneration and training and development. AKR also has a policy to provide a safe and comfortable working environment for all employees in all business locations.

EMPLOYMENT

The Company makes Law No. 13 of 2003 concerning Labor as the main foundation in building employment with employees. The Company fulfills the normative rights of employees as stipulated in the Law. In line with that, the Company also provides various forms of other facilities to employees in order to improve the competence, capacity and welfare of employees.

EQUALITY AND EQUITy OF RIGHTS

AKR always maintains work comfort for employees by creating equality, equal opportunities and employee work comfort. The Company gives the same rights to everyone to participate in the recruitment process carried out by the Company as long as it meets specified administrative requirements, regardless of gender, ethnicity, taste and religion. The recruitment process is carried out openly for the purpose of equity and openness.

The Company also provides equal opportunities to every employee who has been recruited to develop competencies and careers according to the needs of the Company.
One manifestation of the principle of equality implemented by the Company can be seen from the composition of the Board of Directors of the Company which currently has three female Directors from a total of eight Directors.

EMPLOYEE REMUNERATION AND WELFARE

The Company always complies with government regulations and regulations regarding regulations relating to compensation and benefits received by employees. AKR provides appropriate remuneration in accordance with applicable laws and regulations. The Company has complied with the applicable Labor Wage provisions in Indonesia, namely the Provincial Minimum Wages stipulated in each region.

In addition to wages, the Company also provides various allowances for permanent employees, as follows: 1. Health benefits, given based on the level and length of work of each employee. 2. Pension benefits, given to employees who have worked for 15 years or more and have reached retirement age (55 years). 3. Vehicle ownership programs, based on the policies of each division and depending on the length of work. 4. House allowances, given to employees placed outside the city and foreign workers. 5. Food allowance and transport allowances, given up to the supervisor level. 6. Communication equipment and credit card benefits, for certain divisions. 7. Twelve days work leave allowance (will increase in line with the length of work, with a maximum of 20 working days). 8. Leave allowance for 3 months for employees who give birth. 9. Leave benefits for special events such as death, circumcision, baptism, graduation, birth, etc. for employees.
In addition to the facilities and benefits mentioned above, the Company also registered all employees at the BPJS Employment (formerly Jamsostek), to anticipate unexpected events experienced by the Company’s employees when carrying out their work.

In order to motivate employees to be high-performing, while at the same time aligning employee goals with the Company, the Company entered into a Management Stock Option Plan (MSOP) program. This program is held as an effort of the Company to maintain the best employees and increase ownership of the Company. The MSOP program is aimed at those who have the authority and expertise that have a direct impact on improving the Company’s performance.

COMPETENCY DEVELOPMENT

The Company provides equal opportunities to all employees to participate in competency development programs that are carried out in accordance with the needs of the Company. In addition to supporting the Company’s performance, this competency development program is carried out to increase employee capacity and career development.
In 2018, the Company organizes 194 training followed by 1.104 participants, both held in house and by third parties. To support the competency development program, the Company has also equipped various facilities, including the Learning Center and learning with e-Learning methods.

FREEDOM OF ASSOCIATION

The Company guarantees the rights of employees to associate and gather as stipulated in the Law of Manpower. However, until the end of 2018 there were no trade union organizations established by AKR employees. Nevertheless, the Company always involves elements of employees in determining company policies, especially those relating to employees in general.

In the absence of trade union organizations, the Company strives to optimize HR management while taking into account the interests of employees. The Company implements good industrial relations coaching with employees because it realizes that the success of the HR field always begins with the successful development of harmonious Industrial Relations between companies and workers.

INDUSTRIAL RELATIONS DISPUTE RESOLUTION MECHANISM

If there is a problem with industrial relations, Bipartite negotiations will be conducted (between employees and companies) with the following stages:

In the event of an agreement, the employee will make a resignation and the company will provide compensation in accordance with the agreement of both parties or a Joint Agreement (PB).
If no agreement is reached, the Bipartite minutes will be made and submitted to the Manpower Office for mediation.
If In the mediation an agreement is reached, a peace deed is made.
If there is no agreement, there will be a recommendation from Manpower Office.
If unable to accept advice, then proceed to Industrial Relations Court (PHI).
After the decision of the industrial relations court, and still not agree, proceed to the Supreme Court.
The Supreme Court’s decision is binding and must be fulfilled.

EMPLOYEE TURNOYER RATE

The Company strives to manage employee turnover as well as possible. One of the efforts made is to always review existing policies regarding remuneration and benefit packages for employees. In addition to material matters, repairs are always carried out in order to create a conducive and pleasant work environment for employees. With a good working environment, the turnover rate of the Company’s employees tends to be low.
During 2018, the Company recruited 281 new employees. As for employees leaving due to termination of employment were as many as 282 employees, consisted of 12 employees entering retirement, 7 employees passed away, 217 employees resigning at their own request, and 46 employees terminating employment due to other reasons.

Particularly with regard to the rights of female employees to take maternity leave, they are entitled for three months leave. In 2018, there were 6 employees taking maternity leave. Of that number, as many as 6 employees or 100% who took maternity leave decided to return to work.

The turnover rate of the Company’s employees in 2018 is equal to15.32%.

OCCUPATIONAL SAFETY AND HEALTH

To create a safe, healthy and environmentally friendly work environment, the Company established a Department of Occupational Safety, Health, and Environment / Safety, Health and Environment (K3L / SHE). All workers must understand, support, implement and assist in implementing the SHE policy. Not only that, all workers are also required to keep the work environment clean, safe and comfortable so that their work does not disturb other workers. In addition, workers must also work together to create a work environment that is free of air pollution, noise, and other things that can interfere with the implementation of work. Related parties in the implementation of SHE are the community, agencies, firefighters, and local government.

With regard to occupational health and safety, the Company has full commitment as indicated by the establishment of the “Six Zeroes” target in the implementation of SHE around the Company, namely:

Zero Fatality (prevents accidents that result in loss of life)
Zero Lost Time Injury (prevents the occurrence of work accidents which results in loss of time)
Zero Cross Over (prevents exchange or mixing of consumer demand)
Zero Product Quality Problems (preventing the occurrence of problems that cause reduced product quality)
Zero Spillage (prevents the scattering of products during loading and unloading) 6. Zero Potential Fatality Accident (preventing work accidents that may arise in the field).

HEALTH

The Company also provides various health facilities to its employees, including:

Medical check up for employees
First aid kits and medicines for mild illness on each floor of the building or in each branch / terminal
First aid training and first aider designation on each floor of the building or at each site
BPJS Health Membership

AKR has also implemented an Occupational Health and Safety Management System in accordance with PP 50 of 2012 on AKR Ciwandan. In 2018, the implementation of Occupational Health and Safety (OHS) Management System received a Gold Flag with a Score of 90.36 out of 100.

As part of the implementation of OHS, in 2018 the Company also conducts the following activities:

SHE Internal Audit every 6 months
Implementation of MCU (Medical Check Up) / Operational Health Check in the Terminal, Transport and Warehouse & Health Campaign
Blood donors in Bitung, Marunda I, Banjarmasin and Lampung Branches
Extermination of mosquitoes in the work environment

K3 TRAINING

The Company continues to strive to improve employee safety awareness with reference to applicable regulations regarding SMK3. In addition, the Company also runs Safety, Health and Environment (SHE) Standard Operating Procedures (SOPs) to achieve the zero accident target.

To support the achievement of the target, one of the steps taken by the Company is to carry out a number of trainings related to Occupational Health and Safety. In 2018, training related to K3 is as follows:

OCCUPATIONAL HEALTH AND SAFETY FACILITY

In addition to conducting training, the Company also strives to create a healthy, safe and comfortable work environment by providing facilities and equipment to prevent workplace accidents, such as:

APAR
Hydrant System and Foam System in each terminal.
Drill is always carried out every year, with the composition of 3 Small Drills and 1 Big Drill (Involving third parties, such as: Fire Extinguisher, Ambulance, Police, Pelindo, etc.).
Work environment in each measured space (Lighting, Noise, Temperature and Humidity) in accordance with Permenaker No. 05 Tahun 2018.
All terminal activities have gone through Risk Assessment in the form of HIDARC (Hazard Identificaton Risk Assessment and Determination Control) Golden Rules that apply at the terminal including: Permit Work, Energy Isolation (LOTO), Confined Space Entry, Driving Safely, Working at High, Lifting operation, Management of Change.
To ensure maintenance of work equipment and avoid hazards hidden in piping, tanks and all work equipment, P & ID data, SCE (Safety Critical Equipment) and HAZOPs (Hazard Operability Studies) available in each terminal.
First aid kits in areas that are easily accessible, as a form of early assistance if something unexpected happens in the event of a work accident.
First aid kits in areas that are easily accessible, as a form of early assistance if something unexpected happens in the event of a work accident.

OCCUPATIONAL ACCIDENT MANAGEMENT

The Company strives to create an appropriate working environment and SOP to avoid occupational accidents. However, if there are cases of work accidents, the Company has also prepared its own SOP. The Company also prepares an Emergency Reponse Team for each Terminal / Warehouse owned by the Company.

The organizational structure of the Emergency Reponse Team is as follows

OCCUPATIONAL ACCIDENTS IN 2018

AKR has been working optimally to implement health and safety systems and procedures in the Company’s operational environment. However, there are still workplace accidents in the Company’s operational environment. The work accident incidence in 2018 is as follows:

Compared to 2017, there was an increase in the number of accidents and incidents related to injuries (person), where in 2018 there were Lost-Day incidents and also affected employees.

AWARDS AND CERTIFICATION IN THE FIELD OF MANPOWER AND OHS

Zero accident award given to Branches:

Bitung 2018
Ciwandan 2018
Banjarmasin 2018
Stagen 2018
Palaran 2018

May 2, 2019

AKR realizes that protecting the environment is a shared duty and responsibility of the citizens of the world, including the Company. No matter how small the actions and policies that have a positive impact on the environment, it must be realized. Such concern must be fostered because the damage to the earth’s environment worsens over time.

As a responsible corporation, the Company provides support and commitment to preserve the earth through various policies and real actions in the field. With this effort, the Company has a role to play in reducing the negative impact of the earth’s environmental damage on humans, while also benefiting future generations to enjoy a better life on earth. The sustainability of life on earth will undoubtedly be a blessing for the sustainability of the Company.

EMISSION MANAGEMENT

Emission management is carried out through measurement of air emissions (see: emissions of generators, forklifts) in accordance with The Minister of Environment Regulation No. 13 Year 2009. If air emission parameters are found exceeding quality standards, then maintenance of gensets / forklifts is immediately conducted in order to meet the required quality standards.

The Company also routinely conducts emission on all modes of land transportation owned by the Company. By only operating emission test-passed trucks, the Company is participating in emission reduction and plays a role in environmental preservation.
In addition, in 2018, AKR cooperated with BP opened a nonsubsidized gas station that sells high-octane fuel products and meets Euro 4 standards that have more eco-friendly emissions compared to typical fuels sold in Indonesia, which is Euro 2 in general.

WASTE MANAGEMENT

AKR has implemented the management of hazardous and toxic waste (Compliance to PP 101 of 2014) in several areas such as Lampung, Pontianak, Bitung, Tanjung Priok, Marunda II and Stagen Tank Terminals. This has been proven by the results of direct and indirect supervison and monitoring by the Ministry of Environment and Forestry.
However, the Company assesses that it is still necessary to improve quality, especially for the personnel who run the program, because personnel who have competency certification for B3 waste management are needed.

SPILLAGE DRILL AKR

AKR applies the handling of spillage by carrying out spillage drill. With the proper application of SOP and supported by owned spill kit, spillage can be handled properly and in a relatively short time.

SOP for handling spillage and spill kit are very important for AKR, considering AKR’s business fields related to fuel distribution. The success of AKR Bandung in implementing spillage drill can be an example for other branches in handling spillage.

ENERGY EFFICIENCY

Since end of 2018 / early 2019, the Company has moved its head office to a new building that uses energy-friendly technology, including smart elevators and LED lights throughout rooms, which is more energy efficient compared to the old building that still use fluorescent lights.

USE OF ENVIRONMENTALLY FRIENDLY MATERIALS

Since September 1, 2018, in accordance with government policy, AKR fully supports the distribution of B20, solar containing 20% FAME derived from palm oil products, to almost all industrial customers. With the presence of vegetable oil content, AKR believes that new solar products are more eco-friendly and can reduce fossil fuel dependence.

ACTIVITIES OF ENvIRONMENTAL CONSERVATION

In JIIPE, the company is building a fresh water processing facility and a waste water treatment facility with the aim of recycling most of waste and natural water to produce fresh water for its industrial customers. In addition, to conserve the environment, AKR collects rain water and builds seven water reservoir totaling 42 ha area with depth of 6 meters as part of our water conservation program.

ENVIRONMENTAL PROBLEM COMPLAINTS MECHANISM

There were no complaints about environmental problems from the community to AKR in the 2018 period. The community complaints were usually reported through the relevant agencies (Environmental Agency) or directly to AKR.

AWARD AND CERTIFICATION IN THE FIELD OF ENVIRONMENT

In 2018, AKR obtained PROPER 2017-2018 BIRU rating for AKR Lampung from the Ministry of Environment and Forestry.

May 2, 2019

The Company is committed to implementing business development by prioritizing the principle of fair operation. The Company complies and adheres to all applicable laws and regulations.

ANTI CORRUPTION

In line with the spirit of the Indonesian government to eradicate corruption, AKR has a similar commitment. This commitment is inseparable from the implementation of the principles of Good Corporate Governance (GCG), whose objectives include increasing the confidence of consumers, investors and Shareholders.

For this reason, the Company has been trying to close the doors that open opportunities for abuse of office, including the possibility of the practice of gratification and bribery. The commitment to close the opportunity for corruption will apply to all AKR employees without exception. With this commitment, in 2018 there were no proven corruption incidents and actions taken for the incident.
AKR’s policy on anti corruption requires all employees to sign integrity pact which prohibits the practice of corruption, collusion and nepotism in the AKR Group. The pact also requires all employees to avoid giving and receiving gifts or bribery and act honestly.

FAIR COMPETITION

In conducting the business, AKR is always ready to compete in a fair manner, against monopoly and antitrust. To win the competition, the Company strives as much as possible by formulating specific strategies, which are adjusted according to the program and targets to be achieved. In 2018, there were no anti-competitive reports and actions related to the AKR’s business practices.

TRANSPARENT PROCUREMENT OF GOODS AND SERVICES

AKR provides equal opportunities to all parties to become partners in the process of procurement of goods and services. However, the Company sets certain requirements to become partners.

To become an AKR partner, a company must first register as a partner of AKR. This is to ensure the existence and legality of the partner’s administrative requirements in accordance with the applicable laws and regulations.

AKR has a Non-Trade Procurement Standard Operating Procedure (SOP) (for non-trading goods / services), which is carried out by the following mechanism:

The Company guarantees that all processes in the procurement of goods and services are carried out transparently by upholding the companys’ code of conduct.

May 2, 2019

AKR upholds Human Rights (HAM) as a basic guideline in the company’s operations. This applies in (to employees) and also outside (to parties outside the company).

Human Rights is a legal and normative concept which states that humans have inherent rights because they are human. Human rights apply anytime, anywhere, and to anyone, so they are universal. Human rights in principle are irrevocable and cannot be divided.

FULFILLMENT OF HUMAN RIGHTS FOR EMPLOYEES

The International Labor Organization (ILO) has issued several resolutions related to the fulfillment of Human Rights for workers. The resolution has been largely adopted in Law No. 13 of 2003 concerning Labor.

AKR obeys and complies with all applicable laws and regulations, including in terms of employment and Human Rights. Fulfillment of Human Rights for employees of the Company can be explained as follows:

Fair Remuneration The Company always pays attention to the welfare of its employees, one of which is through a remuneration strategy that is always reviewed in accordance with the needs of the Company and maintains competitiveness with the industry, which in turn can support superior performance in achieving the Company’s targets.

The Company implements a remuneration system that aims to support the company’s strategic objectives. So that it is expected that a good remuneration system will support the competitiveness of the Company.

Underage workers

In daily operations, the Company does not employ child labor, and all employees work according to their respective working hours without coercion. Commitment to the absence of exploitation of child labor and forced labor is also a prerequisite for the Company to establish cooperation with supplier companies, such as non-permanent labor service providers. During the reporting period, there were no negative and potential impacts on labor practices in the supply chain. Also, there are no complaints related to the employment practices.

Forced labor

The applicable working time in the Company is in accordance with Article 77 of Law No. 13 of 2003 concerning Labor, which is 40 hours in 1 week. The working hours of AKR employees can be explained in the following table:

In accordance with Company Regulation, for shift employees, operational working hours depend on the branch, place and type of work with a reference to 40 working hours per week. Work with shift system include operators in terminal tanks, technicians, ship crews and others.

With the above provisions, AKR ensures that there are no forced labor practices that occur in the Company because workers have adequate rest periods. And since it was first established until now there have been no reports of forced labor cases in the Company’s work environment.

May 2, 2019

As one of the biggest players in the logistics industry, AKR believes that the best strategy to ensure sustainable success is for the company to prioritize sustainability and responsibility. The Company is committed to grow its business by taking into account the principle of sustainable development.

The commitment to sustainable development is applied by the AKR by running a Corporate Social Responsibility (CSR) program that is based on internationally accepted standards or criteria. The Company views Corporate Social Responsibility (CSR) as a manifestation of concern for the environment, respect for human rights, an obligation to provide a comfortable place and good working relationships with employees, prioritizing the maintenance of occupational health and safety, and participating in developing economy and local community.

As an empowerment of local communities, the Company undertakes a policy to prioritize the use of local labor from communities surrounding the Company’s operational area. For example, the recruitment of operator personnel at the Company’s gas stations and terminals.

In 2015, the United Nations (UN) issued a resolution on the Sustainable Development Goals (SDGs) which contained 17 objectives with 169 measurable achievements. The United Nations has established SDGs as a world development agenda for the benefit of human beings and planet earth.

Albeit still not perfect, AKR seeks to adjust CSR programs that are inline with the SDGs. The Company believes that positive changes made in the community will have a sustainable impact on future generations. The Company is committed to achieving good business growth and at the same time also contributes positively to the environment and society.

The Company realizes that good relations with the environment, community and other stakeholders are needed in supporting operational smoothness. Therefore the Company consistently continues to improve the quality and quantity of the implementation of CSR programs so that the expected impact is the creation of mutually beneficial relationships between the Community and the Company.

PILLARS OF CSR PROGRAM

In order that the CSR programs implemented by the Company be more focused and directed and have an optimal impact, the Company has determined the fields that are the pillars of the Company’s CSR activities. Determination of these fields is adjusted to the SDGs set by the United Nations.

The focus of the CSR program is on the four main stakeholders, namely:

Living Environment The Company strives to minimize the impact of the Company’s operations on the living environment and maintain environmental sustainability.
Employees The Company pays great attention to the aspects of Labor and Occupational Health & Safety by creating a safe, healthy and environmentally friendly work environment, as well as providing guidance for employees so that they can contribute maximally.
Society The Company is committed to developing social and surrounding communities.
Customers The Company is committed to producing high quality consumer products and services.

The Company provides sufficient budget to carry out all CSR activities by using three approaches, namely economic development, openness in social order, and environmental sustainability.

STAKEHOLDERS AND IMPORTANT ISSUES

AKR has mapped the Company’s stakeholders, they are those the affected parties and have an impact on the Company, both directly and indirectly from the Company’s operations. In addition, the Company has also mapped important issues that are of concern to stakeholders or the impact of the company’s operations on stakeholders as reflected in the following table

May 2, 2019

AKR intends to grow and develop with all stakeholders. The AKR’s Corporate Social Responsibility Program is a manifestation of such commitment

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Category: Tanggung Jawab Sosial Perusahaan