Csr Report - Pt Sinarmas.docx

Bianca Aurielle Nurjadi Meiliana Viona Aprilia Wilfred Pangestu

CORPORATE SOCIAL REPORT – PT. SINARMAS

CSR in General Corporate Social Responsibilities (CSR) is a concept that organizations are having various forms of responsibility towards all stakeholders, including consumers, employees, shareholders, communities and the environment in all aspects of the company's operations that cover economic, social, and environment. Therefore, CSR is related to sustainable development - which is an organization in carrying out its activities must take its decisions not only from its impact on economic aspects but also must consider the social and environmental impacts resulting from its decisions, both short term and long term. Corporate Social Responsibilities aims to ensure that companies conduct their business in a way that is ethical. This means taking account of their social, economic and environmental impact, and consideration of human rights. There are many benefits that can be gained from CSR toward business, such as advantages over competitor, improved public image, cost savings, increased customer engagement, greater employee engagement, increase brand awareness and recognition.

SINAR MAS Sinar Mas is a brand of companies, active in 6 business pillars: Pulp & Paper, Agribusiness & Food, Financial Services, Developer & Real Estate, Communications & Technology and in Energy & Infrastructure and are head quartered in Jakarta. All of these businesses managed independently but shared a common corporate history and values. Sinar Mas is committed to the highest business, environment and social standards for sustainable inclusive growth. They are expressing the responsibility they feel for their employees, taking important initiatives in education and healthcare. Focusing on fulfilling basic human needs, their businesses have provided a strong contribution towards national economy. In total, Sinar Mas creates 300,000 jobs dan supports 500,000 additional jobs in Indonesia. The name Sinar Mas itself translates to means the Golden Light. This name and logo are inspired by the golden rays of light from the sun that shines endlessly, giving light and life. The Founder of Sinar Mas is Eka Tjipta Widjaja with the help of Singgih Wahab Kwik (Kowik) or Christophorus Kowik Singhap. They are aware of the sustainability importance and creating the report since 2008. Sinar Mas believes that its business success depends on the opportunities given by the communities it operates in. Therefore, Sinar Mas acts as a responsible corporate citizen; it complies with all applicable laws and regulations and it respects the cultures of the host communities. Sinar Mas offers value to consumers through quality products and services. By improving the quality of life of the employees, Sinar Mas provides satisfactory returns to stakeholders and further strengthens its foundation to build a better future for all involved in the process. Their vision is a balanced approach towards three pillars of sustainability; economic, environmental and social. Their business practices are based on accountability, transparency, respect for stakeholder interests and ethical behaviour at all times.

MILESTONES In 1938, Eka Tjipta Widjaja developed on his business from a humble beginning. He started as a small trader in Makassar, Indonesia in coconut oil and other commodities. Later on, he continued to cooking oil production. During his early days, Eka Tjipta experienced various challenges, with patience and conviction, he developed his business network, and most importantly, he gained support and credibility from his fellow businessmen. The initial investment of trust, not money, helped him to grow his business even in difficult times. Hard work and perseverance helped him in growing a diversified business with a multinational outlook that is now known as Sinar Mas. The businesses are listed in the Indonesian and Singapore stock exchanges. The last sales amount of the Sinar Mas Land is Rp 1,296,442

Sustainable Development Goals There are 3 main focuses of Sinarmas Land Limited in implementing SDG (Sustainable Development Goal): 1. Clean Water and Sanitation Sinarmas Land shows the company's participation in creating clean water and sanitation by implementing a significant water footprint in BSD City. With this significant water footprint, companies carefully monitor the impacts they avoid and reduce the harmful effects of excessive water consumption, and dump waste into natural water systems. On the consumption of surface water, Sinarmas Land also conduct rigorous environmental impact assessments, and it turns out that there are no adverse effects on our stakeholders or local and downstream biodiversity.

Sinarmas Land provide clean water quality for all their residential building and also equip with water treatment systems in their residential and apartments. In BSD City, water intensity per GFA (Gross Floor Area) usage has decreased by around 10-30% compared to 2016. At the latest Sinarmas Land’s project, their use green buildings design that has an efficiency water use system and also has very clean water sanitation. In the 2017 period, BSD City already sent 12,169,970 m

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to a third party for reuse and as much as 78,044 m accommodated to surface water bodies -river, 3

lake, and reservoir. Which means, Sinarmas Land do not directly dispose of water without being recycled and use their water as efficiently as possible. The BOD of Discharge in BSD City is 9,5 mg/l and BOD of effluents is 13 mg/l that means Biochemical oxygen demand (BOD) of BSD City's discharge and effluents at 2017 were below the limit stipulated by the Indonesian government. The Breeze Mall BSD City ("Mall without Walls") was built with reference to the importance of environmental conservation and natural aspects such as lakes and green parks combined with the architecture of a lifestyle centre that is equipped with various facilities such as a comfortable pedestrian area, water features, bicycle tracks and a thematic garden.

By implementing Clean Water and Sanitation Goals, Sinarmas land indirectly also implements several other SDGs, such as: Life Below Water By implementing a significant water footprint in BSD City, Sinarmas Land also participates in maintaining the ecosystem around or inside BSD City. This is indicated by the BOD content that is below the limits set by the Indonesian government. Sinarmas Land also helped develop several new ecosystems by building several artificial lakes in BSD City which accompanied by good management to keep life under water. Partnerships for the goals Sinarmas Land shows that their company can achieve their goals by cooperating with third parties in recycling their water and make their water can be reuse to give efficiency in using water.

2. Sustainable Cities and Communities BSD City contributes to the development of quality physical infrastructure and public transportation. BSD City has continuous development of public transport and logistics facilities within its projects in order to minimize unnecessary emissions from transportation (people and goods). BSD “Knowledge House” aims to increase the knowledge and skills of different communities within BSD City, e.g. Small Medium Enterprise owners, the Movement for Indonesian Deaf Welfare community, or the Bamboo Hat Community. BSD City also Upgrading of schools and homes in Tangerang Regency. BSD City also has several supporting activities, such as: 

Healthy and Clean Lifestyle Campaign

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Capacity building activities for Small and Medium Enterprises (SMEs) at Sinarmas Land's modern markets

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Collaboration with Indonesian Ministry of Trade (e.g. Modern Market BSD)

Sinar Mas Land considers education to be one of the most important prerequisites for the sustainable development of society. Sinar Mas is committed to ensuring that everyone in its operating community, regardless of their gender or age, and at their own discretion, has equal access to the Sinar Mas educational ecosystem. This is supported by: 

Construction of a 40-hectare educational facility named EduTown in BSD City, inviting renowned international and domestic educational institutions to establish a presence

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Provide scholarships for computer programming students to support the development of our Digital Hub project and ensuring that students are wellprepared for the growing demand of modern job markets

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Non-formal education, economic and cultural knowledge programs for local communities near Sinar Mas Land projects

Sinar Mas land give their top priority and greatest strength: By providing state-of-the-art facilities and services of the highest quality and standards and they are contributing to the prosperity for their present and future generations. This Supported by: 

Best city planning in its class obtained by BSD City

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Top quality offices, commercial (e.g. Indonesia Convention Exhibition) and retail (e.g. AEON Mall BSD City) spaces, and residential properties, built in accordance with leading engineering and environmental standards

By implementing Sustainable Cities and Communities Sinarmas land indirectly also implements several other SDGs, such as:

Climate Action Sinarmas Land with continuously development of public transport and logistic facilities make them contribute to reduce the gas emission and help prevent rising temperatures in the earth. Sinarmas land also has best city planning that always pay more attention their environment

Quality Education With Construction of a 40-hectare educational facility named EduTown in BSD City, inviting renowned international and domestic educational institutions to establish a presence. Sinarmas Land prove that Sinarmas participates in providing good quality education for their stakeholders.

3. Life On Land Sinarmas Land made a real effort to preserve the environment by greening the Benteng Taruna Stadium, Kelapa Dua District, Tangerang Regency, by planting 1,000 trees in the central sports area. 

Sinar Mas Land has made efforts to reduce carbon emissions such

as prioritizing a large amount of green open space, saving energy, and prioritizing the use of public transport to reduce the carbon footprint. BSD Green Office Park office area has also been certified as the first "green" office area in Indonesia from Green Mark Singapore. Sinar Mas Land as a developer seeks to realize concern for environmental conservation issues through the application of green vision in each of its projects. Development of Green Office Park green area, Green Building certification, environmentally friendly Mall without walls ‘The Breeze ', comfortable pedestrian paths and various events to build public awareness of the importance of protecting the environment. The “green festival” is held every year to build public awareness of the importance of protecting the environment. More than 3 million trees have been planted in commercial, pedestrian, median roads and environmental parks, as well as developing city parks and urban forests.

CONCLUSION Sinar mas is in the grow stage with their values that show up their integrity, positive attitude, commitment, continuous improvement, innovation, loyalty with discipline and they want to build green building at Bumi Serpong Damai. Sinar mas will also show that he supports religious activities of citizens by continuously donating hundreds of thousand Al Quran. Sinar mas do concern for others by sharing with other and by creating job opportunity for 300,000 people and support 500,000 additional jobs in Indonesia and with this kind of sustainability, Sinar mas has become one of Asia's leading business committed with the highest technical, environmental and social standard operating according to good corporate governance principles.

REFERENCES

1. https://www.investopedia.com/terms/c/corp-social-responsibility.asp 2. https://www.tbd.community/en/a/corporate-social-responsibility-csr-definition 3. https://www.highspeedtraining.co.uk/hub/importance-of-corporate-social-responsibility/ 4. http://www.sinarmasland.com/sustainability-report 5. https://ryanfebrian91.wordpress.com/2011/09/15/profil-perusahaan-sinarmas/ 6. http://www.sinarmasland.com/assets/files/upload/sustainability_report/sinarmasland/Sina rmas_Land_Sustainability_Report_2017.pdf 7. https://id.wikipedia.org/wiki/Sinar_Mas