Basic Implementation of Corporate Governance
As a public company listed on the Indonesia StockExchange (IDX), the implementation of the Good Corporate Governance (GCG) of the Company is based on the rules and regulations in force in Indonesia. However, the implementation of GCG is not only aimed at meeting applicable regulations and regulations, but also seeks to place GCG as the main foundation in conducting business, and is used as a principle in order to maintain the Company's existence in facing challenges and business development, especially in the aluminum industry. Therefore, the Company is committed to applying the principles of transparency, fairness, accountability, independence and accountability in all operational activities.
Corporate Governance Structure
The corporate governance structure includes several important aspects that play a role in strengthening the control and management functions of the company, which consists of the main organs namely the General Meeting of Shareholders (SGM), the Board of Commissioners and Directors, and supporting organs which include the Corporate Secretary, Audit Committee and Internal Audit Unit.
The Company encourages a reasonable relationship between the Company's Organs in the effective implementation of Good Corporate Governance, by carrying out its functions in accordance with the provisions of the Articles of Association and the prevailing laws and regulations based on the principle of independence in carrying out functions and roles for the interests of the Company and mutual respect for duties and responsibilities each.
The code of ethics is used as a reference for every person in the company to interact with stakeholders and fellow company people to maintain and grow the profile, image and reputation of the company by requiring all company people to carry out their business activities based on morals that can indirectly maximize value for shareholders. The Code of Ethics is formulated with a spirit of honesty, responsibility, mutual trust, openness and cooperation in every business activity that covers all aspects relating to individuals, companies, industries and society.
The code of conduct is regularly socialized throughout all parts of the Company, and all new employees will work to sign this Code and will be re signed as a sign of approval for each year.
The Code of Ethics also applies to the Board of Commissioners and Directors in connection with all activities on behalf of the company. Every level of the organization (including the Board of Commissioners and Directors) understands that if a violation occurs, the Company will take disciplinary action including termination of employment. In addition, the Code of Conduct is also regularly reviewed and updated to ensure its alignment with the objective of the Code of Conduct.
CORPORATE VALUES To create a better future for all stakeholders and develop together to serve the community and nation through business development.
Compliance with Laws, Regulations and Regulations It is expected that every employee will obey the laws, rules and regulations of the country and become law-abiding citizens to ensure that law-abiding corporations.
Creating Clean and Green Businesses and Products The best companies must take responsibility for society and the larger community. By creating a clean and green business and product, the Company will be able to serve the community in the long run with its true purpose.
Loyalty, Capability, Hard Work and Discipline From the pillars of success and achievement. Every member of the organization must maintain its integrity and be prepared to work hard and smart for the mutual benefit of both the Company and individuals. Organizational behavior must be carried out by means of military discipline but the approach remains humane.
In accordance with the Articles of Association, the honorarium of the Board of Directors and Board of Commissioners is determined at the Annual SGM. Furthermore, the SGM authorizes the Board of Commissioners to determine the amount and distribution of the honorarium among members of the Board of Directors and Board of Commissioners. The amount of remuneration for each member is determined according to the function and competencies of each member through indicators of remuneration determination. The total remuneration received by the Board of Directors and Board of Commissioners each are Rp.5.338.627.000 and Rp.1.503.939.000 for 2019.
The company's activities are always faced with risks that are closely related to its function of creating value for stakeholders. The rapid development of the external and internal environment causes business risks to become increasingly complex. The creation of GCG is inseparable from the application of risk management, because through the formal, structured and integrated application of risk management is able to give the Company strength to adapt to the business environment. Some risks faced by the company include:
Whistle Blowing System (WBS) is a means of communication to report actions related to violations or suspected violations, both against the law, the code of ethics and/or conflicts of interest committed by internal company parties. WBS hopes are expected to be able to overcome the limitations of the internal control system and provide a guarantee of early detection of violations that occur.
Submission of Violation Reports Submission of violation reports is done in 2 ways, namely directly and indirectly. Directly by reporting directly to the Personnel, Security, Supervisors and Plant Managers. Indirectly, reporting through other means such as suggestion boxes, e-mails, telephone and mobile phones.
Protection for Reporters The Company will guarantee the security of the reporter and the reporter receives recognition and appreciation from the Company in the form of a thank-you note from management and records the condition of the employee concerned with a separate assessment.
Handling and the Party Managing Complaints Every complaint or disclosure of reporting is carried out by a team of WBS administrators formed by the Board of Directors to conduct audits, record and correct corrective actions and impose sanctions on the reported party. It is also mandatory to be communicated with the local Police if there are found cases of suspected serious and certain violations.
Incoming and Processed Complaints in 2019 In 2019, no complaints or reports were received and handled by the Company.
Social and environmental responsibility (Corporate Social Responsibility - CSR) is the Company's commitment to participate in sustainable economic development in order to improve the quality of life and the environment that is beneficial, both for the Company itself, the local community and society in general by considering the expectations of stakeholders, in line with established laws and norms of behavior as well as integrated with the organization as a whole. The cost of implementing CSR in the Company is carried out centrally by the Group amounting to Rp.2,524,517,788,- with the Company's contribution of Rp.343,184,292 for 2019.
Living environment The Company is committed to complying with laws and other requirements related to environmental management, preventing environmental pollution, striving for energy and natural resource efficiency and environmental empowerment, including:
Employment
Social and Community
Product Responsibility
The focal point of responsibility to consumers related to aluminum product sales transactions conducted by the Company is to ensure that the product is sold to the applicable composition and manufacturing standards, in accordance with the specifications of the desires of consumers and does not adversely affect consumers' health.
Technical The Company works closely with consumers even before work goes on to ensure that consumers' desires in ideas and designs can be fulfilled. For the accuracy of each work the Company uses AutoCAD technology
Dies Manufacturing The Company's product development team is able to help consumers to design special dies that can improve the quality of the products produced, one of which is by using a new Vertical CNC machine capable of making specifications and a high level of tolerance. In addition, the Company also uses CNC machines such as CNC Wire Cut and CNC EDM to produce precise dies.
Extrusion Division The extrusion division provides standard and special extrusion facilities. Automatic and sophisticated measuring equipment is also used with the ability to accurately profile dimensions up to 0.001mm. With a level of precision like this will give consumers the quality they need.
Fabrication Division This division has received certificates from TUV and Kite Mark for various ladder series. TUV and Kite Mark are safety standards for foot support products made of metal for household needs.
Surface Finishing Company is a PVDF wet paint certified applicator produced by PPG and Valspar to comply with the required quality assurance and AAMA specifications in the painting process. This high-quality paint comes with a 10-15 year warranty, both for standard and special colors, and ensures long-lasting durability for interior or exterior use. In addition to wet paint, PT INAI is also a certified powder coating applicator produced by leading suppliers, such as Akzo Noble, Jotun and Dupont.
Establishing Relationships with Customers During 2019, the Company has endeavored to make several efforts to maintain good relations while at the same time realizing the Company's social environmental responsibility to customers. The measures implemented include:
Measurement of customer satisfaction The Company conducts customer satisfaction surveys periodically to determine the level of customer satisfaction as part of the process to improve service and especially the quality of products received by customers. Based on the results of the 2019 survey, the value of the level of customer satisfaction is on a scale of 3.7 as evidence of an increase from 2018 on a scale of 3.4 with 2 main points being improved namely product quality and packaging procedures.
Consumer Complaints The Company provides access to customers to submit complaints or other matters relating to products and services through direct marketing staff, telephone, email, fax or the Company's website. During 2019 the number of claims received was 0.30% of total shipments during the year. All claims, 100% have been resolved properly by the relevant department.