The legal basis for the Company’s CSR programs refer to the prevailing rules and regulations as well as the MNC Group CSR Policy that governs the Company and its subsidiaries’ CSR. The CSR legal is as follows:
- 2007 Law Number 40 regarding Limited Liability Companies (UUPT), Chapter V, Article 74, paragraph 1, wherein a Company that carries on business activities in and / or related to natural resources is obliged to carry out Social and Environmental Responsibility;
- 2003 Manpower Law No. 13;
- 1999 Law Number 8 regarding Consumer Protection;
- 2012 Government Regulation No. 47 regarding Corporate Social and Environmental Responsibility.
- Bank Indonesia Regulation Number 16/1/PBI/2014 regarding Consumer Protection of Payment System Services.
- 2014 Bank Indonesia SE Number 16/16/DKSP regarding Consumer Protection Procedures for Payment System Services, Service Procedures and Customers Complaints Settlement.
RESPONSIBILITY RELATED TO THE ENVIRONMENT
Good management and environmental protection is a Company commitment and the Company has established the environment as one of the main pillars for its CSR activities.
For the Company, conducting CSR environmental activities is a non-negotiable obligation, based on the Company’s awareness that the Environment is the main source of life.
Even though the Company’s business activities have a relatively small direct impact on the environment, the Company has a strong commitment to engage in environmental preservation efforts, both directly and indirectly.
The Company believes that the environment is one of the main factors in supporting its business continuity. Therefore, in every business activity, the Company ensures that they do not have a negative impact on the environment. The Company’s policy regarding environmental management and protection is manifested as a form of appeal, or Company Regulation to minimize the Company’s operational impact on the environment. In addition, the Company is also aware that the Company’s business activities can significantly influence environmental conservation activities.
The Company’s concern for the environment is shown by the following activities:
- MNC Group cleaned Kali Ciliwung at the Ekoriparian Region, Srengseng Sawah, Jagakarsa, South Jakarta in conjunction with MNC 28th Anniversary. As many as 300 MNC Group employees mingled with the local people cleaning the Ciliwung river. The activities also included cleaning and planting of plants and fish seeding.
- Electricity and water savings activities/efforts for the Company’s own needs.
- Paper savings activities/efforts when printing documents by using paper on both sides.
- Recycling water from air conditioners into clean water that meets the quality standards in the Minister of Health Regulation. The water recycling system came from a program developed by one of the winners of the MNC Innovation Award 2015, and is currently used in buildings in the MNC Group office complex.
The Company has benefited from the environmental CSR activities, through energy and paper efficiencies within the Company. The impact from the Kali Ciliwung River cleanup and tree planting are all expected to reduce the impact of floods in the surrounding area, and together demonstrate the Company’s concern for maintaining the environment.
RESPONSIBILITY RELATED TO EMPLOYMENT, HEALTH, AND WORK SAFETY
The Company complies with applicable laws and regulations, including those related to employment. The Company pays great attention and commitment to gender equality, employment opportunities, job training to improve employee professionalism, and has a reward system that is commensurate with the financial services industry, including to health and work safety. The Company’s employment management practices are guided by a Company Regulations, established by the Board of Directors and authorized by the Jakarta Office of Manpower and Transmigration through Endorsement Number: 439/PP/L/ VIII/D/2016 dated August 19, 2016.
The implementation of the Company's employment, health, and work safety policy are as following activities:
- Gender Equality and Work Opportunity The Company provides equal opportunities for all people, male or female, regardless of ethnicity, religion, race, class, gender, or physical differences to participate in its employee recruitment programs. Employment is based on the results of selection, probation evaluation results and employee orientation.
- Equality in Education and Training Programs The Company provides training opportunities for employees aimed at meeting skill needs and developing employee competencies. The types of training conducted in 2017 included: basic company induction, basic skill training, certification training, functional training, leadership training, and socialization. In total 6,523 people received training in 2017, with a total training time of 4,520 hours.
- Remuneration: the Company provides equity in providing rewards and benefits to employees in accordance with their career paths, duties and responsibilities, and competencies. For remuneration the Company always tries to avoid wide remuneration gaps.
- Implemented a Balanced Score Card (BSC) system for the Company’s HR performance management, that has been useful in motivating employees to attain better work achievements/performances.
- Providing Umroh Packages to the Holy Land for Moslem employees and Worship Packages to the Holy Land for Christian employees given to employees who fulfill the criteria set by the Company to motivate employees to reach better work achievement/performance.
- MNC Group held Blood Donor Action titled “MNC Love Donation” in the Company’s surroundings in cooperation with PMI held 3x in 2017.
- The Company gave out 100 free reading spectacles to children in several Public Elementary Schools in the area around MNC Integrated Financial Services, Medan.
- MNC Bank and the Himpunan Mahasiswa Kedokteran Indonesia extended free medication.
- MNC Peduli through the Yayasan Jalinan Kasih held a free cleft lip and cataract operations in various areas in Lampung, West Java, Central Java, East Java and other regions.
- The Company provided policlinic facilities and doctors to provide medical services to employees in the office areas.
- The Company has been registering its employees and their families with health insurance through BPJS Health. This provides protection and insurance coverage for medical examinations, or hospital care, including maternity coverage for female employees and male employees’ wives.
- The Company has equipped all of its operational offices with standard safety equipment such as: Fire Extinguishers, Smoke Detectors, Diesel Pumps, and Emergency Stairs. The Company regularly checks all facilities to ensure that all facilities are fully operational when required.
- The Company regularly conducts simulations for handling evacuations in case of natural disasters or fire. Evacuation signs have been installed at various points and assembly points have been set up. Inspection and maintenance of safety equipment such as fire extinguishers and alarms are also routinely performed.
- The Company provides socialization related to the safe use of work equipment, for example: the use of standard electrical equipment, including turning off computers and other electrical appliances when not in use.
RESPONSIBILITY RELATED TO SOCIAL AND COMMUNITY
The Company is fully aware that its business continuity cannot be separated from its role and contribution to the surrounding communities. The Company feels that it has a responsibility for social development, both in improving the community economy, and for development in other areas.
Policy The Company’s CSR social and community development programs focuses on 5 (five) activity pillars, education, economy, public health, religion and social. The five activity pillars follow the Company concept of being a Good Corporate Citizen. The Company is also keenly aware that it is part of the community, where the Company’s business growth cannot be separated from that of the community. To that end, the Company pays great attention to social development, manifested in a number of CSR socio-cultural activities.
The Company’s CSR contribution for social and environmental responsibility in 2017 was as follows:
- MNC Peduli in cooperation with Lotte Mart Indonesia for Rehabilitation Bridge in Wajak Malang, East Java
- MNC Peduli in cooperation with Lotte Mart channeled Donasi Sahabat Belanja Lotte Mart for Rehabilitation Bridge in Ciamis and Ujung Kulon.
- MNC Peduli in cooperation with Lotte Mart provided 1,500 provisions packages and stationary to the Sinabung volcano eruption refugees in Namanteran District, Karo, North Sumatera.
- MNC Grp in cooperation with the Ministry of Social Affairs of the Republic of Indonesia distributed 6,000 free provisions packages to the Veterans Families, Independence pioneers, Dhuafa People, the Poor, Orphans and Displaced Children in Jakarta, Tangerang, Bandung, Solo, Surabaya and Sidoardjo.
- MNC Peduli in cooperation with Lotte Mart gave 1,000 provisions packages to a number of foundations in East Jakarta, Central Jakarta, South Jakarta, Bekasi and Lebak Banten. Continued with 1,000 provisions packages for Surabaya.
- MNC Peduli donated thousands of educational and story books to RPTRA Kebon Jeruk and Kebon Sirih, and to several reading clubs in Indonesia.
- MNC Peduli gave provisions donations and sanitation products to flood victims in Bantul, Pacitan, and Bekasi.
- MNC Insurance held a social service by giving aid to Yayasan Yatim Piatu Nurul Iman Jafariah in Lavender Food Court, iNews Tower Building, Jakarta.
- MNC Group together with its business units and partners held a distribution of hundreds of cattle for Qurban to various regions in Indonesia in conjunction with the Idul Adha Public Day.
- MNC Sekuritas held a Sekolah Pasar Modal for the Disabled Community.
- MNC Sekuritas opened more than 50 investment galleries in various campuses all over Indonesia and simultaneously opened capital market literacy.
- MNC Bank gave out financial literacy to a variety of schools and educational institutions in Jakarta and Tarakan, Kalimantan.
The education and training assistance provided by the Company to the surrounding communities has had various impacts, including an increase of knowledge among drop out teenagers in rural areas in processing waste into objects with economic value. In addition, the financial literacy programs that were given to the Tarakan community and students in Pekanbaru have increased their understanding of the banking system. In terms of health assistance, the impact of the cleft lip and hernia surgeries, as carried out by the Jalinan Kasih Foundation, has reduced the burden on the community due to illnesses suffered.
RESPONSIBILITY RELATED TO CONSUMERS
The Company believes that the consumer is a significant stakeholder, supporting the business development now and in the future. The Company’s consumer responsibility is based on applicable legislations, including:
- Law of the Republic of Indonesia No. 7 of 1992 on Banking, as amended in Law of the Republic of Indonesia No. 10 of 1998;
- Law of the Republic of Indonesia No. 8 of 1999 on Consumer Protection;
- OJK Regulation No. 1/POJK.07/2013 on Consumer Protection for the Financial Services Sector.
In 2017, the Company conducted several initiatives and activities addressed at consumers, including:
1. Providing facilities explaining the subsidiaries’ products to existing and potential customers either through the Company’s website or the integrated subsidiaries’ websites.
2. Providing customer service channels in all business units.
3. Socializing and educating existing and potential consumers about capital market products and where they can obtain them in the Company.
4. Holding regular meetings with customers to maintain customer loyalty
5. Providing media for the consumers to obtain product and Company service information, register complaints, as well as suggestions through call center 1-500-899, which provides a 24/7 service, or can email at: firstname.lastname@example.org.
In 2017, the Company’s consumer responsibility CSR activities had a non-financial impact including increased customer satisfaction and loyalty, as well as a decrease in consumer complaints.