22
INDOFOOD AGRI RESOURCES LTD
SUSTAINABILITY REPORT 2014
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achieved ISO 9001 certification for all refineries.
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standards and regularly assess the Group’s quality control
systems, including those of its suppliers.
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PEOPLE AND COMMUNITIES
As a responsible employer and plantation owner, we aim
to provide a high standard of welfare, health, living conditions,
civic services, and training to our employees and their families. We
practice fair compensation, and are committed to strengthening
labour relations and promoting human rights.
Occupational health and safety
[material issue E]
Agriculture, refining and milling operations are potentially
dangerous vocations with risk of injury or accidents relating to the
plantation environment, machineries and equipment, chemicals,
confined spaces as well as operator errors. Providing a safe and
healthy working environment is a primary commitment to our
employees.
Human rights
[material issue J]
As an agribusiness, there is constant pressure to demonstrate
how human rights are respected. IndoAgri is committed to
dealing fairly and transparently with all employees and business
partners. The management of risks relating to diversity, employee
retention, labour conditions, freedom of association, child labour
and forced labour is core to this effort. In the plantations, which
are often remote, we provide a range of essential amenities and
facilities to cater to the needs and comfort of our employees.
Land rights including scarce land resources
[material issue D]
Land ownership is a deeply social, political, historical and religious
issue in the agricultural industry. We uphold the principle of
FPIC with regards to land purchases from local villages, and it is
important to IndoAgri that the local villagers, in turn, have enough
for their own livelihood and provisions.
How we manage these issues
An Occupational Health and Safety (OHS) management system,
known as SMK3, in compliance with local regulation, is used in
our estates and factories.
We pay at least minimum wage according to local regulations and
ensure that our reward policies are competitive. All IndoAgri staff
are enrolled under Badan Penyelenggara Jaminan Sosial or BPJS
(formerly known as Jamsostek), a government pension plan to
which the Group and the employee respectively contributes 3.7%
and 2.0% of the monthly basic salary. Retiring employees enjoy a
severance package and other benefits set out by BPJS.
The Group also supports the development of agronomy,
agriculture and engineering skills through four training facilities.
We invest in the training of professional skills suited to specific
roles and job requirements. To identify and groom future leaders,
we have a Learning and Development Programme implemented
in collaboration with the First Pacific Leadership Academy.
The Group complies with Indonesian labour laws and ensures
that all employees and casual labourers are of legal age. All
forms of child or forced labour are strictly prohibited. As an
equal opportunity employer, our recruitment policy is based on
merit. We support our female employees by providing child care
centres and keeping the job positions of new mothers who go on
maternity leave.
The Indonesian Labour Union represents the interests of our
employees. Across the regions, 58% of our operational employees
are unionised, and 93% of them are protected by a Collective
Labour Agreement (CLA) that includes an OHS clause.
Our
Work and Estate Living
Programme covers aspects relating
to safety, health and wellbeing of our workers and their families,
and to human rights. We aim to provide safe, hygienic and healthy
work and living conditions for our employees, workers and their
families living on the estates. To support field employees who are
parents, we provide day care centres so that their children can be
properly supervised.
Other key initiatives:
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clean water, electricity, free education and proper medical
care, to all estate residents.
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housing, places of worship, sports venues, kindergartens,
schools, clinics, aid posts and posyandus.
Our
Smallholders
Programme sets out practical guidelines on
building good relations and engaging with our local communities.
To alleviate conflicts relating to land rights and to cultivate strong
social relationships, we actively engage with local landowners and
community leaders. The benefits have been manifold, including
the mitigation of theft, protests, roadblocks and other business
disruptions.
The
Solidarity
Programme seeks to empower those in our estates
through capacity building, education and financial support. Local
activities and grassroots projects are prioritised and planned
based on the findings from our Social Impact assessments.
Key initiatives:
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such as:
– Lip cleft and cataract operations
– IndoAgri Sehati: revitalised posyandu to promote maternal
and infant health
– Rumah Pintar handicraft programmes to stimulate micro
-
enterprise
– Donations and humanitarian aid following natural disasters
– BISMA scholarship
– Sponsorship of local activities
– Infrastructure development such as schools and community
facilities
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communities before the release of land rights.
The relationship between the material issues, our supporting
programmes and performance indicators is presented on page 23.
More details on our Sustainability Principles and Programmes
at
OUR SUSTAINABILITY
PROGRAMMES
