COMMUNICATION ON PROGRESS PT RAJAWALI CORPORA 2018 …

Rajawali Corpora 2018

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COMMUNICATION ON PROGRESS

PT RAJAWALI CORPORA

2018-2019


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I. COMPANY IDENTITY Company Name PT Rajawali Corpora Date August 16, 2019 Address Menara Rajawali Kawasan Mega Kuningan

Lot 5.1 Membership date

April 8th, 2006

Jakarta 12920 Country Indonesia Number of

employees ±35.000 persons (Total Group)

Contact name Y.W. Junardy Contact Position Commissioner Sector Investment Holding

Company Contact telephone no.

021 576 0808

Brief description of nature of business PT Rajawali Corpora is an investment holding company of Rajawali Group operating in diversified industries with 10 business units in hotels and resorts development, land and air transportation, agriculture, coal, gold, and iron sands mining, broadcast media, public relation consultant, and IT Services. The Group covers approximately 35,000 employees. Statement of continuing support

“PT Rajawali Corpora is proud to be the member of the United Nations Global Compact. We are committed to the Global Compact initiatives and uphold its ten principles pertaining to human rights, labor rights, protection of the environment and corporate governance. We believe that by adhering to this core set of universal values which are fundamental in meeting the socio economic needs of the world, we would be able to foster sustainable growth. Our commitment is also reflected in our participation in collaborative actions and full support to the operations of Indonesia Global Compact Network by providing office facilities, executive resources as well as operating funds in order to advance the GC Principles in Indonesia. Peter Sondakh Chairman & CEO PT Rajawali Corpora


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Rajawali Corpora’s Vision and Mission:

Vision:

To become an outstanding reputable company that creates and adds value to our stakeholders

Mission: • Optimizing shareholders’ value. • Delighting customers with superior products and services. • Inspiring, empowering and caring for all employees. • Supporting the community and environmental sustainability.

Values: • Integrity • Caring • Respect • Excellence & Innovative • Being Responsible • Unity • Growth


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II. IMPLEMENTATION OF UNGC’S 10 PRINCIPLES HUMAN RIGHTS PRINCIPLE 1 BUSINESS SHOULD SUPPORT AND RESPECT THE

PROTECTION OF INTERNATIONALLY PROCLAIMED HUMAN RIGHTS

PRINCIPLE 2 BUSINESS SHOULD ENSURE THAT THEY ARE NOT COMPLICIT IN HUMAN RIGHTS ABUSES

PRINCIPLE 3 BUSINESS SHOULD UPHOLD THE FREEDOM OF ASSOCIATION AND THE EFFECTIVE RECOGNITION OF THE RIGHT TO COLLECTIVE BARGAINING

Respect for human rights is a fundamental principle of practicing good management and being a responsible business. At Rajawali, the implementation of human rights is reflected in the company philosophy, values, policies and code of business conducts covering the roles of management and employees as well as the advancement opportunity, competitive compensation and benefits, work environments, and obligation to the community in location where we are operating (Corporate Social Responsibility). Implementations: Framework: Corporate Governance

The Governance framework is designed to provide the Rajawali Corpora Board, the Business Unit Boards and the Rajawali Group’s employees with a structure by which: o the business is conducted o decisions are presented and approved o employees conduct themselves Rajawali Corpora is committed to uphold its Corporate Governance to: o create Shareholder Value o protect individuals—provides ground rules in which management can operate o part of Risk Management o provide good control environment o provide good business practice–where it is structured and focusing on core

principles o establish credible structure/credibility–assisting to attract solid, long term

investors The Rajawali Governance Framework provides empowerment to the Business Units within the approved risk tolerance levels. At the Holding level, Rajawali Board approves the following: o Group organizational structure and Board Committees, including appointment

of its members o Vision, mission, values and standards o Annual Strategic and Business Plan o Corporate actions, i.e. potential investments, divestments, mergers and

acquisitions, restructuring, spin-offs, joint-ventures, partnerships, stock splits, dividends, capital raisings (e.g. public offerings, bond issuance, bank


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borrowings, etc.), hedging, asset write-off, asset revaluation, capital management and other corporate finance activities

o Strategy for external communications o Executive appointments and exits o Executive KPIs and compensation, benefits and perquisites o Dividend Distribution Policy o Corporate Social Responsibility activities o Financial Audits and Governance o Code of Conduct o Approval Limits With the above approvals from the Holding level, Governance is established. Business Units operates within the guidelines from Rajawali Governance. The Governance Framework had been reviewed annually to define and establish the 5 pillars of RC Corporate Governance which focus on accountability, fairness, transparency, independence and responsibility. The policy update and the new policies in the Corporate Governance Manual in 2017-2018 includes the following: o Finance and Investment Committee (FIC) Charter o Audit, Performance, Compliance and Risk Management Committee (AC)

Charter o Human Capital Committee (HCC) Charter o Ethics Committee (EC) Charter o IT Committee (ITC) Charter o Procedures for Submission of Corporate Action or Initiative to FIC

Process: Corporate Governance

The Corporate Governance and Code of Ethics are in place and implemented across all Business Units. The Corporate Governance Manual is reviewed annually and served as a guideline for the Boards and employees in conducting the business throughout the Group. o Governance and Internal Audit department prepares the Governance and

Internal Audit plan in the beginning of the year, socializes it to the Business Units for inputs and comments, and seeks approval from the Audit, Performance, Compliance and Risk Management Committee. Once approved, the Governance and Internal Audit plan will be implented accordingly, with a regular reporting to Audit, Performance, Compliance and Risk Management Committee during the Audit, Performance, Compliance and Risk Management Committee meeting (at least biannually).

o Governance are reviewed and developed with inputs from the relevant

departments and business units and routed to Board of Directors for approval.

o To support on the implementation of Corporate Governance in Rajawali

Group, the Internal Audit Coordination and Technical Sharing Session was conducted on 30 May 2018 at Connext by Marquee, Cyber 2 Tower 17th floor and was attended by 28 participants from various Internal Audit and Finance


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units in Rajawali Group. The event discussed about the innovation in Internal Audit followed with a team building and discussion session. The overall experience enhances professional development, provides peer-to-peer networking, and building the audit bench strength across the Rajawali Group.

o As part of the implementation of the RC Code of Ethics, all members of the BOD, BOC, Executive Advisors and employees who hold positions of trust and confidence signed and submitted the Integrity Undertaking to RC Ethics Committee in 2018. All members of the BOD, BOC, Executive Advisors and employees in Rajawali Corpora also acknowledged their compliance with the Code of Ethics by signing the Annual Compliance Confirmation and Undertaking form collated in January/February 2019.

Embedding Management Responsibilities To establish corporate accountability, exercise fair, consistent treatment and transparency, the company has reorganized the Board Committees each chaired by Managing Director level: o Human Capital Committee.

This committee is established to review and recommend people development strategy and its implementation in order to support the achievement of long term and short term business goals in the area of people development, compensation and benefits, and succession plan within the Group.

o Information Technology Committee This committee is established to ensure that IT strategy and implementation are aligned and support the achievement of long term and short term business goals as follows: Board insight into IT value, financial implications and risks

Strategic decisions on important IT investments to achieve good returns and respond to changing business requirement in an agile manner

Clear responsibility and accountability for strategic IT decisions IT governance integrated into corporate governance Well-governed IT function, process, systems, and infrastructure

Deliver competitive services geared towards customer orientation and service availability

o Ethics Committee

This Committee is responsible to assist the RC Board of Directors in fulfilling its responsibilities relating to (a) the compliance by RC with all legal requirements to which it is subject, including all regulations and laws applicable to RC, (b) the design, implementation and execution of the RC’s Compliance and Ethics Program and (c) matters relating to Code of Ethics and Business Conduct. Further the Ethics Committee assists the RC Board of Directors in establishing an appropriate “tone at the top” and promoting a strong “culture of compliance” while also recognizing the Board of Directors is responsible for instilling ethical compliance and Corporate Governance within RC.


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o Finance and Investment Committee

This Committee evaluates and recommends potential investments, divestments, mergers and acquisitions, restructuring, spin-offs, joint-ventures, partnerships, corporate actions (e.g., stock splits, dividends, etc.), capital raisings (e.g. public offerings, bond issuance, bank borrowings, etc.), hedging, write-off of assets, asset revaluation, capital management and other corporate finance activities for the Rajawali Group. The Committee shall oversee existing investments and monitor the management of such for meeting peformance targets.

o Audit, Performance, Compliance and Risk Management Committee

The Audit, Compliance, Risk Management and Performance Committee (AC)’s primary function is to assist the RC Board of Commissioners (BOC) in fulfilling its oversight responsibilities relating to the system of internal controls, risk management, corporate governance process, the financial reporting process, and the audit process.In performing its duties, the AC will maintain effective working relationships with the RC BOC, Business Units’ BOC and Management, and the internal and external auditors. To perform AC role effectively, each AC member shall have a good understanding of the detailed responsibilities as well as the Rajawali Group’s business, strategies, operations and risks.

Rights to Equal Employment Opportunity & Non Discriminatory

Treatment Written policy is in place and implemented across Business Units. The policy defines that all hiring process, promotion, and business decisions are taken strictly on qualifications, business imperatives, and merit.

Rights of Workers Rights of Workers are stipulated in the Human Capital Policy. It covers, among others: o Health & Safety

Rajawali Corpora has established comprehensive and adequate allowance including medical, transportation, health assistance, subsidy/assistance & emergency loan, safety, and security procedures.

- Since 2012, Rajawali Corpora also conducts Tali Kasih program as part

of Employee Benefits Scheme - in which adequate funds or gifts are given in the event of marriage, bereavement, and birth.

- For work safety program, Rajawali Corpora has also provided comprehensive personal insurance for employees that travel often during work, and for all people managers.

- This comprehensive allowance scheme is established so that the employees can have a favorable working condition and thus, it may then support their well-being. The provision and amount of allowances may differ in Business Units by considering the industry common practices and requirements.

- Special field training is regularly conducted for plantation workers.

o Education


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Every employee is eligible to get training in order to develop their skills and competency to support company objectives. Company provides both soft skills and technical skills education as required. Some conducted internally, others are acquired externally. Some examples of the in-house training program:

- Monthly sharing session was conducted for all BU Group at Menara Rajawali, Jakarta. This session was designed to share knowledge from internal expert with various topics such as corporate governance and risk, information technology and security awareness, also several national issues.

- We conducted HC Forum for all HR business units with various topics such as people development and labor.


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- In 2018, we also facilitate employee who want to share their knowledge by conducting sharing session for all RC employees.

o Internal Communication The company facilitates various internal/employee communication programs to allow employees to express their aspiration to the management, and vice versa. The available programs include:

- Intranet Rajawali - is an intranet based online technology that

provides company information for all employees in order to keep the employees abreast with the current situation of the Company and Business Units. The Intranet is also functioned as an employee communication tool by means of enabling group interest forums such as photography, cycling, various sports, etc.

- Employee Activities of Rajawali Corpora comprise of various groups of interests in sports and arts, such as basketball, volley ball, futsal, badminton, table tennis, tennis, golf, cycling, yoga, karaoke, photography, and choir. Religious community such as Tausiyah is also part of Employee Activities initiative. The purpose of establishing such community groups is to strengthen the tie between Rajawali Corpora employees while also to promote the healthy and balance work-lifestyle by encouraging its members to contribute in sport, art, and/or religious activities. Sense of belonging (through workplace communal activities) may promote inter-employee sustainable engagement, whereas employee physical and mental health may in turn affect work productivity.


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Respecting Human Rights through Social Activities – practicing good management and being a responsible business through Rajawali Foundation by ‘giving, caring and enabling’ community is also Rajawali Corpora’s commitment to respect human rights.

1. Blood Donation – 23 Jan 2018, 17 April 2018, 10 July 2018, 23

October 2018, 26 Feb 2019, 25 Jun 2019,

Quarterly conducted, the open-for-public event attracted donors from Menara Rajawali tenants’ employees, Rajawali group employees and other walk-in donors. Partners: PMI (Indonesian Red Cross) – Jakarta. Impacted beneficiaries: people who receive benefits of pints of blood we contribute. In 2018, we contributed 334 blood bags of 350cc and 450cc to PMI. Since 2011, we have contributed 2,545 pints of blood.


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In June 2019 – PMI delivered certificates of appreciation to those who

have been consistently donating blood more than ten and twenty times.

2. KITA bercerita (Keluarga Indonesia Teman Anak bercerita) –

3 Feb 2018, 21 April 2018, 28 May 2018, 2 June 2018, 12 Dec 2018, Rajawali Corpora and Rajawali Foundation continued to invite more

active participation from business units and their employees to support KITA bercerita movement. The movement which has two main purposes (1) to nurture reading habit since early childhood by doing 10-minute storytelling campaign and activities; also (2) to improve bounding between children and parents, has been successfully carried out with participation from Rajawali business units and starts to create wider impact to communities.

In February 2018 – we visited Public Housing at Rusunawa Cipinang

Besar Selatan.


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In April 2018 – KITA Bercerita held short training session to ISCO (Indonesia Street Children Organization) on how to deliver an effective storytelling.

In May 2018 – KITA Bercerita in collaboration with Rajawali

Ramadhan Program, deliver read-a-loud story telling to orphans before

“iftar” or breakfasting.


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In June 2018 – KITA Bercerita and Indonesian Alumni of Ritsumeikan Asia Pacific University in Japan shared happiness with kids with cancer in Central Jakarta.

In December – KITA Bercerita held social activity with PDRG to celebrate the spirit of Chirstmas.


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Disruptive technology affects to the way of teaching and learning nowadays. KITA bercerita use social media to reach out many people. Parents could use our contents on Instagram to do storytelling to children during heavy traffic for instance or just to check latest updates by simply visiting our Instagram account @kitaberceritaid and #kitaberceritaapa for contents.

3. Rajawali Ramadhan – 28 May 2018, 4 June 2018, 20 May 2019

In 2018, we initiated two-day events of social activities in collaboration with business units at Yayasan Panti Asuhan Aisyah and Panti Asuhan Nusantara. We gave donation to support orphans’ education and Panti’s daily operational. In 2019, we gave donation to one mosque for necessary improvement.


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Partners: Rajawali Corpora, Rajawali Foundation, Rajawali Property Group, Eagle High Plantations, Archi Indonesia. Impacted beneficiaries: 150+ children with disabilities and 500+ mosque jamaah .

4. RAJAWALI CARE

1. Natural Disaster Relief 2018-2019 is the time when Indonesia as a nation mourned thousands of people in several places due to consecutive massive earthquakes and tsunami. First massive earthquakes took place in Lombok Barat and Lombok Timur on 29 July 2018; second deadly earthquake and tsunami hit Palu, Donggala and Mamuju on 29 Septembr 2018; flash floods hit Sentani Papua and Bengkulu on 17 March and 27 April 2019. Rajawali Corpora and Rajawali Foundation in collaboration with business units provide humanitarian aid – staple foods, water, tents to victims through BNPBD (Badan Nasional Pennaggulangan Bencana Daerah), related government’s agency, and Indonesia Red Cross (PMI). On top of that, Rajawali Care program also provides education support for children. KITA Bercerita story tellers also joint the mission. 2. Giving Supports to Local Foundations who take care of people

with disabilities Rajawali Corpora together with Rajawali Foundation, Rajawali TV and Archi Indonesia as Rajawali Group gave donation of foods, medicine, and funding to Yayasan Elsafan (for the blind people) and Yayasan Gerasa (for women with mental illness)


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Partners: Rajawali Corpora, Rajawali Foundation, Archi Indonesia, Eagle High Plantations, Express Taxi, Fortuna, Rajawali Property Group, Rajawali TV, Triaryani, and Velo Networks. Impacted beneficiaries: 20,000+ people (16,000 Lombok and Palu)


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Yayasan Elsafan


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Yayasan Gerasa

Rajawali Foundation supports children’s right to access education

(1) Rajawali Foundation continues to provide scholarship for 2 (two)

outstanding social workers at Yayasan Elsafan – we believe they can be a role model and contribute more as teacher at SLB A+ ElSafan once graduated;


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(2) Rajawali Foundation continues to provide scholarship for 25 undergraduate IT students who are coming from poor family background in Toba Samosir, North Sumatera;

(3) Rajawali Foundation in collaboration with Yayasan ARS 86 Peduli renovated one kindergarten shool (TK Pertiwi Gunung) in Boyolali, Central Java.


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Rajawali Foundation Involvement in IGCN (UN Global Compact Network Indonesia) to address Human Rights issue

1. Business & Human Rights Working Group (B&HRWG)

We commit in supporting achievement of Sustainable Development

Goals by joining UN Global Compact Network Indonesia (IGCN) as a multi stakeholder initiative. This shall be the platform for dialogue, sharing information and learning from each other to align business operations with SDGs aspects.

Together with other IGCN members we have started to concept and

develop the working group which focus on business & human rights issues since 2015.

Successfully launched on 6 April 2016, the Working Group has two main

agendas; (1) To enhance implementation of UN Guiding Principles on Business & Human Rights (UNGPs) into corporate values; (2) To actively contribute on Business and Human Rights-National Action Plan together with KOMNAS HAM.

Acting as Co-Chairs of the working group are Anugraha Dezmercoledi

from Rajawali Foundation, Andi Muttaqien from ELSAM and John Dharmawan from UI.

Co-Chairs will lead multi-stakeholders dialogue, campaign, and

necessary training to improve knowledge and awareness on related issues among private sectors and civil society. It is also important to always engage government in the process.

There are three pillars of Business & Human Rights; (1) responsibility of

Nation / Government to protect against human rights violation; (2) responsibility of private sectors to respect human rights; (3) Access to remedy which is available and respect justice.


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Bisnisdanham.id (Flagship platform of B&HRWG) – in February 2019, B&HRWG successfully launched “Bisnis dan HAM Helpdesk” to provide public direct access to information about UNGPs (UN Guiding Principles on Business & Human Rights), information in regards to grievance mechanism which are available in Indonesia, information in regards to current government policy and regulation on Business & Human Rights, news and updates on UNGPs, our quarterly Multi stakeholders dialogues, and other form of communication for those who want to seek assistance.

Rajawali Corpora and Rajawali Foundation are supportive to this

initiative and within the corporation; we have also established whistleblowing system and complaint handling mechanism which is solid – in accordance to UNGPs.

Partners of B&HRWG: Rajawali group Business Units to include

Express Taxi and Eagle High Plantations who are also IGCN members, 84 total members of IGCN, Ministry of Foreign Affairs, Ministry of Law & Human Rights, KOMNAS HAM, ELSAM, OXFAM in Indonesia, INFID, Prakarsa, Respons Bank, Teach for Indonesia – Binus University, Sinar Mas.

Impacted beneficiaries: individuals employed by private sectors

(starting with Rajawali Group + 50 IGCN other private sector members), individuals working in the supply chain, consumers and neighbouring communities.

Activities:

(1) 5-6 February 2018 – Regional Workshop on Business & Human

Rights; (2) 16 November 2018 – Multi stakeholders Dialogue at FiFest national

event, JCC, Jakarta; (3) 27 February 2019 – Business & Human Rights Forum at Hotel Le

Meridien, Jakarta;


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(4) 27 March 2019 – Anugraha D of Rajawali Foundation delivered training on “Pemulihan Non-Hukum dari Panduan PBB tentang Bisnis & HAM: Pemulihan Berbasis Non-Negara” , at ELSAM’s ACCESS training camp;

(5) 27 June 2019 – Anugraha D of Rajawali Foundation and Satrio Anindito of Rajawali Corpora delivered opening speech and being moderator at Shift two-day UK training session on “Applying UN Guiding Principles to Human Rights Due Diligence and Reporting” at UNNES, Semarang.


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Employee Wellness Company provides comprehensive wellness facilities. These benefits vary from one business unit to another depending on each respective industry environments and affordability. These include: o Medical allowance & health prevention assistance; o Transportation allowances; o Special assistance/emergency loan offered to our employees affected by

crisis, such as grievances (i.e.: death, prolonged sickness,) natural & fire disaster;

o Employees’ leaves (Annual Leave, Long Service Leave, Maternity Leave, Sick Leave, Compassionate Leave, Hajj Pilgrimage Leave, and Unpaid Leave);

o Employee transfer/relocation entitlements for those who are relocated at the company’s request. The entitlements include: housing allowance, educational allowance for the children, additional vocational leave, home trip, hardship allowance (if any,) and cost of living allowance.

Violations To exercise fair treatment and ensure all actions are justifiable, the company implements sanction procedures for any violations or breach of Code of Ethics by employees. Business Ethic Committee is involved in any serious violation.

Termination of employment To ensure that all termination actions are justifiable, properly administered, and executed according to the prevailing government laws and company policy/regulations, the company sets a termination procedure and an exit interview for any termination. There are two categories of termination: company initiated termination and employee initiated termination. Employees whose employment is terminated may receive severance compensation according to the prevailing government policy.

Freedom of association

The company policy stipulates the company facilitates communication programs to allow dialog with employees to understand their aspirations. The formation of association or union is stipulated in the policy manual. Employee can form the organization so long as it adheres to the company policy and code of business conduct.

Political Activities

The company is not affiliated to any political party. Employee joining political party is considered a personal affair. Employees should not use the company’s time and resources in conducting his/her political activities.


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LABOUR PRINCIPLE 4 BUSINESS SHOULD SUPPORT THE ELIMINATION OF ALL

FORMS OF FORCED AND COMPULSORY LABOUR PRINCIPLE 5 BUSINESS SHOULD SUPPORT THE EFFECTIVE ABOLITION

OF CHILD LABOUR PRINCIPLE 6 BUSINESS SHOULD SUPPORT THE ELIMINATION OF

DISCRIMINATION IN RESPECT OF EMPLOYMENT AND OCCUPATION

Labour policy o In accordance to the established policy, Company and its business units must

not engage in any forced and compulsory labour. The Company establishes a standard working hour. The procedures and payment of overtime for eligible employees are provided in accordance to the government regulations.

o The company policy stipulates that the minimum age of employee to be hired is 18 years old. No child labour.

o The following is the distribution of employee by age in Rajawali Corpora (this figure does not include employees in Business Units):

Rajawali Corpora, PT. Age Group as of January 2018

Age Group 21 - 25 26 - 30 31 - 35 36 - 40 41 - 45 46 - 50 51 - UP TOTAL

Head Counts

1 13 18 32 22 24 15 125

Non-discrimination Policy o Policy is in place and implemented across business units. Company provides a

working environment that is free from harassment and discriminations including that from race, ethnic, color, religion, national origin, disability, marital status, age, sexual orientation, or gender.

o Promotion is fully based on individual performance and potentials, evaluated

by immediate superior, and approved by superior’s superior and Human Capital.

o Distribution of employee by gender in Rajawali (excluding employees in

Business Units):

Rajawali Corpora, PT. Employee Data as of January 2018

Level Male Female Total

Managerial 37 16 53

Non-Managerial 23 19 42

Non-Staff 30 0 30

Grand Total 90 35 125


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Rajawali Foundation’s effort with key stakeholders to mainstream poor &

vulnerable youth into labor market In collaboration with Center for Public Policy Transformation (“Transformasi”), since 2017 Rajawali Corpora through Rajawali Foundation supports improvement in public policy & regulation, to emphasize on addressing issues of poverty, workforce, inequality, and vulnerable people.

1. USAID – SINERGI project to Mainstream Poor & Vulnerable Youth into Labor Market in Indonesia From submission of 140 concept notes to USAID in 2015, 6 project concepts which finally were approved by USAID in the second semester of 2016. Rajawali Foundation leads the SINERGI consortium (Rajawali Foundation and Transformasi) to receive a four year project fund from USAID to address poverty by mainstreaming poor and vulnerable youth (18 to 34 years old) into labor market in Indonesia. In the pilot phase, we will test the concept in Central Java for 15 months, starting October 2017, before scaling up to other provinces. SINERGI The project will strengthen coordination between stake holders at provincial level to have better link & match between education and industry. Rajawali Foundation will bring together Provincial Government leaders, District level government leaders, private sectors, TVETs (Technical and Vocational Education and Training), CSO and Media into the process in the Committee. The project named SINERGI, which stands for “Strengthening Coordination for Inclusive Workforce Development in Indonesia”. In order to establish better coordination among key stakeholders, SINERGI together with Bappeda Jawa Tengah established POKSI (Kelompok Aksi). Named POKSI to give more action oriented to this working group. Central Java with lower labor minimum wage rate compared to neighboring provinces has attracted many local and foreign investors to set up new labor intensive business in the province. Having said this there are still huge gap between workforce supply and demand. Labor intensive industry for instance, suffers from turnover rate up to 50% annually. POKSI will work through 25 champions from private sectors, government, youth centers, TVETs and media. They will come up with co-designed innovative solutions to mainstream poor and vulnerable youth into labor market in Central Java and to resolve current challenges private sectors and government are facing. The huge gap we have is the basis for SINERGI project to work with both local and national level governments to improve public policy & regulation which pro and support to mainstream youth into labor market, in particular poor and vulnerable youth. Once


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succeeded, this will be replicated / scaled up to other provinces in Indonesia which will significantly contribute to poverty eradication and develop local economy. Activities:

(1) Established POKSI to strengthen coordination among key stakeholders and to

influence better public policy to mainstream poor and vulnerable youth into labor market;

(2) Provide set of trainings and apprenticeship program for youth to include youth with disabilities in coordination with existing BLKs;

(3) Held innovative job fair that is inclusive to all participants to include people with disabilities.

Partners: Labor intensive industries (PT. Pan Brothers, PT. Apparel One Indonesia), Business Associations (APINDO & KADIN), Related Ministries (Ministries of Manpower, Research and Higher Education, Industry, BAPPENAS), District level governments (PemKab Semarang, Boyolali, Demak, Kendal, Salatiga and Surakarta), Central Java Provincial Governments, TVET institutions (BLK and LPK in Central Java), NGO & CSO to represent poor & vulnerable youth (Saujana, Sahabat Difabel, Yayasan ElSafan, Pemuda Ansor, Karang Taruna), Universities (UNNES, FISIPOL UGM, IKIP Veteran), and Media (Swara Merdeka, Radar Semarang, Rajawali TV, Tribune Semarang, Radio ElShinta). Impacted Beneficiaries: 775 direct beneficiaries of poor & vulnerable youth, 5,000+ poor and vulnerable youth as indirect beneficiaries. September 2018 - Kick Off Event with The Governor of Central Java

November 2018 - Minister of Manpower handed over training completion certificate to our

beneficiaries (445 youth)


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November 2018 - Job Fairs which promote gender equality approach and working environment

with reasonable accomodation for people with disabilities at workplace

Rajawali Foundation together with Bappenas to disseminate lesson learned on how to create an inclusive working opportunities at Indonesia Development Forum 2019, 22-23 July 2019 1. Besides sharing lesson learned from what Rajawali Foudationa has done in

Central Java, Rajawali Foundation led discussion on how creating working opportunities that allow women participation with reliable protection scheme; how to provide reasonable accommodation for person with disabilities at the


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workplace, etc.

23 July 2019 - With Deputy Minister BAPPENAS, Bp. Pungky Sumadi, and Vincente from Young Voice Indonesia (person with disabiities champion)

2. SINERGI is one of 30 Best Practices of achieving SDGs, The Minister Bambang Brodjonegoro presented VNR Republic of Indonesia in front of High-Level Political Forum Members at UN head quarter in New York, July 2019 – SINERGI on page 111.


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ENVIRONMENT PRINCIPLE 7

BUSINESS SHOULD SUPPORT A PRECAUTIONARY APPROACH TO ENVIRONMENTAL CHALLENGES

PRINCIPLE 8

BUSINESS SHOULD UNDERTAKE INITIATIVES TO PROMOTE GREATER ENVIRONMENTAL RESPONSIBILITY

PRINCIPLE 9

BUSINESS SHOULD ENCOURAGE THE DEVELOPMENT AND DIFFUSION OF ENVIRONMENTALLY FRIENDLY TECHNOLOGIES

Rajawali Corpora’s commitment to environmental sustainability is articulated in its strategic sustainability framework (Fig 1) Figure 1. The Rajawali Sustainability framework


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Our sustainability commitment

Rajawali Corpora businesses are engaged in unlocking value from Indonesia’s natural wealth and creating services to meet an upwardly mobile society. In doing so, we contribute to providing jobs and livelihoods, supporting local communities and commerce and adding to the knowledge base of Indonesia. Our commitment: ‘Resource Stewardship for the Future’s Generation’ is consistently applied in each of the business in which we have invested.

With an eclectic range of stakeholders, primarily in Indonesia where the majority of our investments are located, our efforts on environment management are included a selection of wider comments in respect of local community stakeholders as and where they have influence over the ‘right to operate’ in the locations concerned, recognizing that in most cases community and environment are integral to one another.

Our stakeholders are employees, neighbors in the communities around our operations, local governments, customers & suppliers as well as investors and bankers. We also examine how we manage our impact on the environment. Including energy, land use, water, and biodiversity and pollution management, with the overriding aim of adopting best practices so that we can benchmark our performance within each of our core sectors, with internationally recognized and accredited standards.

ANTI CORRUPTION PRINCIPLE 10

BUSINESS SHOULD WORK AGAINST CORRUPTION IN ALL ITS FORMS, INCLUDING EXTORTION AND BRIBERY

Core Values

The adoption of corporate governance is embedded in our Rajawali Values which are the guiding principles of our operations:

- Integrity : We act in an honest, ethical and truthful manner - Caring : We show concern for others - Respect : We value and appreciate other people’s views - Excellence & Innovative : We do the best to consistently exceed

expectations through actions and the generation of new ideas - Being Responsible : We are accountable for our actions and

inactions - Unity : We capitalize on differences and work

together to achieve common goals - Growth : We always strive to become better


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Code of Ethics The code provides a guideline to all directors, commissioners, executive advisors and employees in businesses conducted within and outside the Group. It includes compliance with laws, regulations and group’s policies; ethical business conduct and fair dealing; conflicts of interest: outside engagements or business dealings, related parties, insider trading, gifts & entertainment, kickbacks and prohibited commissions, non-solicitation; group properties and assets, including confidential information, intellectual property and official records; job performance; other stakeholders; health, safety and environment.

Reporting and Compliance Procedures Any report of violations or suspected violations to the Code of Ethics will be reviewed and acted upon. RC Ethics Committee is reponsible for maintaing a record of all regulatory and Code of Ethics violation.

Compliance Confirmation and Undertaking Each year directors, commissioners, executive advisors and employee within Rajawali Group will be required to formally acknowledge their compliance with the Code of Ethics. A signed Compliance Confirmation and Undertaking form is a requirement for continued employment at Rajawali Group. The Compliance Confirmation and Undertaking for the year 2018 was collated in January/February 2019 from all members of the BOD, BOC, Executive Advisors and employees in Rajawali Corpora.

Integrity Undertaking Member of Board of Directors, Board of Commissioners, Executive Advisors and Employees who hold positions of trust and confidence will be required to sign Integrity Undertaking upon appointment and/or upon joining Rajawali Group. All members of the BOD, BOC, Executive Advisors and employees who hold positions of trust and confidence have signed and submitted the Integrity Undertaking to RC Ethics Committee.

Promoting Good Corporate Governance

Rajawali Corpora is also the active member of Indonesian Business Links (IBL), a non-profit foundation aims to contribute towards the creation of sound and ethical business practices in the country.

Documents

COMMUNICATION ON PROGRESS PT RAJAWALI CORPORA 2018 …