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Operational Risks
Health and safety – failure to implement an occupational
safety and health system to protect the employees and
workers from accidents and to improve their health
conditions will expose IndoAgri to costs associated with
compensation liabilities, financial loss, negative business
reputation and possible loss of lives.
Environment – failure to manage environmental risks will
expose IndoAgri to costs associated with compensation
liabilities, financial loss, negative business reputation
and possible loss of lives.
Social conflict – existing conflict with local communities
may affect operations, limit access to areas, and increase
operating costs due to inefficiency and safety issues.
Compliance Risks
Permits/Licenses/Land Ownership – failure to secure the
appropriate land permits and proper licenses on time,
resolve overlapping ownership issues and process third
party claims may expose IndoAgri to the loss of land rights.
Environmental – non-compliance of environmental laws
may expose IndoAgri to regulatory sanctions, public
protests, security problems and imposition of fines and
penalties by the government.
IndoAgri closely monitors the risk factors above and puts
in place programmes to mitigate our exposure.
our sustainability teams
IndoAgri has two sustainability teams in PT SIMP and
PT Lonsum respectively. The teams, which comprise
full-time specialists in the field of Occupational Health
and Safety (OHS), Environment, and Corporate Social
Responsibility (CSR), make use of industry best practices
to implement sustainability across our operations, and
are responsible for the accreditation by RSPO, ISPO
and PROPER.
In the refineries, the factory managers are responsible
for the implementation of sustainability, environment
and OHS regulation, policies and systems. They are
supported by the Human Resources (HR) and Quality
Assurance & Control (QAC) departments based in the
Jakarta headquarters. The two factory managers in
Jakarta report directly to the national manager, while
the factories in Medan and Surabaya report directly to
their respective branch managers and indirectly to the
national manager.
The R&D team works closely with the sustainability teams
to improve agronomical practices and support HCV area
development. CSR programmes are implemented by the
operational teams and coordinated by the HR department
who reports the progress to the executive directors.
Currently, the plantation teams are reporting to either
the COO or HR department. The ERM unit supports
the plantation teams in policy development, strategy
formulation and issue resolution in consultation with
the CEO.
The full corporate governance statement, details of the
committees, board remuneration and significant policies
are disclosed in the IndoAgri Annual Report published
in April 2013 and available at www.indofoodagri.com
Mr Sonny
Lianto
Executive Director
Mr Tjhie Tje Fie
Non-Executive Director
Mr Axton Salim
Non-Executive Director
Mr Goh Kian
Chee
Independent Director
Mr Hendra
Susanto
Independent Director
Sustainability Report 2 012