Company Social Responsibility

The Company’s business activities (including Subsidiaries) are not simply of meeting Shareholders’ interests, but also to contribute to community and the environment, and provide benefits to employees and consumers. Therefore, the Company is committed to carry out various corporate social responsibility (CSR) activities in order to create profit for Shareholders, protect the environment (planet), and improve social and economic welfare for the community and employees, and guarantee the health and safety of consumers (people). The implementation of CSR is consistently expected to have an impact on the sustainable growth of the Company’s business.

Legal Basis of CSR Implementation

The Company implements various CSR programs based on the prevailing laws and regulations, including:

  1. Law No. 8 of 1999 on Consumer Protection;
  2. Law No. 13 of 2003 on Manpower;
  3. Law No. 40 of 2007 on Limited Liability Companies;
  4. Government Regulation No. 47 of 2012 on Social and Environmental Responsibilities of Limited Liability Companies; and
  5. Guidelines for CSR in Environment from the Ministry of Environment.

Responsibility toward Environment

The Company is committed to create environmental balance through various programs carried out during 2018, include:

  1. Use of Environment-Friendly Material The Company reduces the use of material that contain poisons and natural material that can damage the environment.
  2. Energy Savings
    1. Lighting for all hotels and Company housing uses energy-efficient LED lights; and
    2. The Company uses air conditioning (AC) with hydrocarbon freon. This type of air conditioner uses lower electricity and is more environment-friendly.
  3. Use of Paper The Company strives to reduce paper use in carrying out operational activities in several ways, including:
    1. Reuse empty paper sides; and
    2. Use of e-mail to deliver information related to company operations, invitation to meetings, delivery of reports, etc.
  4. Waste Management System
    1. Waste from housing development projects such as wood scraps, nails, cement sacks, and paint cans, are sold or given to artisans/local residents. Broken bricks, concrete, and tile slabs are used as backfilling materials.
    2. Waste from property, especially liquid wastes from shower rooms, laundry, and stools, is handled by flowing them to a wastewater treatment plant (WWTP). The Company, through its Subsidiaries, also has permits for the management of toxic and hazardous materials (B3) from Semarang City Environmental Agency.

Responsibility toward Employment, Health, and Occupational Safety

The Company strives to improve the social and economic welfare of employees through various programs, namely:

  1. Gender Equality and Job Opportunities
    The recruitment process of the Company’s Employees is carried out without discrimination of religion, race, ethnicity, class, and gender. Job opportunities are given according to the Company’s standards by considering the position needed. Information on employee use by gender is described in the Human Resources section of the chapter on Operational Aspects in this Annual Report.

  2. Occupational Facilities and Safety

    • Employees at housing projects are equipped with various attributes that can protect and reduce workplace accidents, such as helmets, gloves, and boots; and

    • The Company Provides APAR (Light fire extinguishers) at the headquarters and Jakarta office, as well as all hotels owned and managed by the Company.

  3. Health
    The Company ensures the availability of medicines the employee may use. The Company also provides BPJS Health facilities and health insurance (either from private or self-managed) for all employees.

  4. Education/Training
    The Company continues to provide job education/ training for all employees in every level of the organization that aims to support the implementation of duties and improve the work professionalism.

  5. Remuneration
    Remuneration is provided as a form of the Company’s appreciation for employee . performance. Remuneration is provided in the form of monthly salary and bonus for achieving employee performance.

  6. The company provides complaints services
    For employment concerns through direct supervisors/Human Resources and General Affairs/Company leaders.

Management of employment, health, and occupational safety of employees in 2018 has an impact from reducing employee turnover compared to 2017 and zero accident in the entire operational area of the Company. Information about employee turnover is described in the Human Resources section of the chapter on Operational Aspects in this Annual Report.

Responsibility toward Social and Community Development

Throughout 2018, the Company implements various social and community development programs as follows:

  1. Employing Local Employees
    All employees of the Company and Subsidiaries are domestic workers. The Company and Subsidiaries have no foreign workers.
  2. Involving Surrounding Community
    The Company encourages the economic activities of the surrounding community by involving the MSME sector (micro, small and medium enterprises) in activities held in the hotel area. Through this, the Company contributes to business growth and related economic improvements.
  3. Improving Social Infrastructure Facilities
    On November 5, 2018, the Company carries out clean actions and tree planting (reforestation) as well as provides aids in cleaning maintenance facilities to Kreo Goa Tourism Area located at Dukuh Talunkacang, Kelurahan Kandri, Gunung Pati Subdistrict, Semarang. Aids provided are in the form of:
    1. 20 sets of garbage bins with planting iron;
    2. 10 stemmed brooms;
    3. 9 shovels;
    4. 5 hoes.
  4. Form of Other Donations
    Throughout 2018, the Company through its Subsidiaries distributes donations of Rp 65,983,666 for various social and community development activities including donations to orphanages, MTQ events, mass circumcision, gifts for residents around the hotel, breaking fast (iftar) with orphans, donations for orphans, donations for the construction of mosques/prayer rooms, donations of sacrificial animals, refurbishment of the Sector Police Hall, disaster donations, blood donations, etc.

Responsibility toward Consumers

Consumer is one of the stakeholders related to the continuity and sustainability of the Company’s business. Therefore, the Company strives to gain the trust of consumers by paying attention to the followings:

  1. Consumers’ Health and Safety
    The company pays attention to the consumers’ health by using selectively the toxic-free material in the construction of hotels and housing projects. For the purpose of consumers’ safety, personal protective equipment (PPE) is provided in all hotels owned and managed by the Company. Site selection and housing design take into consideration consumers' safety such as flood-free locations and slopes of land intended for housing to minimize any possible landslide or land shift.
  2. Information on Products and Services
    The Company makes easy for prospective consumers to obtain information related to products and services offered through websites, brochures, and various social media. In addition, information on these products and services is also delivered in various events related to the Company’s business activities.
  3. Consumers’ Complaints
    Consumers’ complaints are handled by work units in charge of the Company’s business operations. Complaints related to property issues can be directed to the Sales and Marketing Department while complaints related to hospitality issues can be directed to the Front Office. Each complaint will be processed and followed up by the units concerned, according to the type of complaint raised. All complaints in 2018 have been handled properly.