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Painting a Beautiful
Picture of Indonesia
SR 2023
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S US TAI NA B I L I T Y R E P O RT 2023
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Painting a Beautiful
Picture of Indonesia
The dedication of PT Avia Avian Tbk (hereinafter referred to as “the Company” or “AVIA” or “we”) in conducting business
activities that prioritize excellence and responsibility has propelled the Company to become a pioneer in innovation
and sustainability in the paint sector. With a track record spanning more than 4 decades, the Company has continuously
brought color to the lives of millions of families in Indonesia. This experience has guided us beyond simply providing
quality products and taking strategic steps to ensure that every touch of color from our products benefits the
environment and society.
With a strong determination, the Company is committed to keep contributing to coloring Indonesia not only with a
beautiful color palette, but also with minimum environmental footprint and maximum contribution to the surrounding
community. With a commitment to continuous innovation and sustainability values as our guide, we will keep moving
forward to paint the future of Indonesia with inspiring colors of sustainability.
About the Sustainability Report
The Company’s Sustainability Report is prepared to provide The basis for the preparation of this report is the Financial Services
accountability and information on the implementation of Authority Regulation No. 51/POJK.03/2017 on the Implementation
sustainability principles in all aspects of operating the business. This of Sustainable Finance for Financial Services Institutions, Issuers, and
third report published by the Company will be further developed Public Companies as well as standard reporting indicators based
at the next regular publication, which will take place at the end of on the Global Reporting Initiative (“GRI”) Standards 2021 option
each financial year. in Accordance and its relation to supporting the achievement of
Sustainable Development Goals (“SDGs”). The preparation of the
This report contains information related to the application of report based on these standards has been verified by internal
sustainability principles in economic, environmental, social, and parties, without an assurance process by an independent external
governance aspects within the Company and all Subsidiaries from party. [GRI 2-5] [POJK G.1]
January 1, 2023 to December 31, 2023. In the economic aspect,
financial information is presented based on the Consolidated Throughout 2023, there were no significant changes to the
Financial Statements, including information on AVIA and all Company’s Sustainability Report. To comply with the principle of
Subsidiaries. Whereas, on the social and environmental aspects, validity, in the event of a restatement or reiteration of information
the data presentation remains limited to AVIA, PT Tirtakencana contained in the previous report due to certain reasons, such as
Tatawarna (“TKTW”), and PT Tirtakencana Batamindo (“TKBI”). The differences in methodology or calculation methods, we will mark
governance aspect contains data of only AVIA. [GRI 2-2, 2-3] such restatement or reiteration with: *restated. [GRI 2-4]
Further information regarding this report and its contents can be obtained through: [GRI 2-3]
Avian Brands Building
Jl. Ahmad Yani No. 317
Surabaya, 60234, Jawa Timur, Indonesia
Hera Septi Astuti (62-31) 99850500/99850600 investor.relations@avianbrands.com
Corporate Secretary corsec@avianbrands.com www.avianbrands.com
2023 Sustainability Report - PT Avia Avian Tbk 1
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Table of Contents
About the Sustainability Report 1
Table of Contents 2
Sustainability Strategy 4
About the Company Sustainability
Governance
Company Information 28
Sustainability Vision and Mission 30 Commitment to Sustainability 56
Governance
Company Values 31
Sustainability Business, Product, and Service 32
Structure of Sustainability 57
Performance Segments
Governance
Competence Development 60
Overview Organizational Scale 35 related to Sustainability
Operational Areas 36 Sustainability Risk Management 61
Sustainability of Economic Aspect 12
Group Structure and Subsidiaries 37 Building a Sustainability 63
Sustainability of Environmental 12 Significant Changes in the 38 Culture
Aspect
Company and Supply Chain Compliance with Prevailing Laws 68
Sustainability of Social Aspect 13
Preventive Approaches or Principles 38 and Regulations
Significant Events 14
External Initiatives 38 Political Contributions 68
Awards, Assessments, and 15
Certifications
Membership in Associations 21
Determination Healthy Economic
of Contents and Growth
Foreword by the Materials of Report
Board of Directors Economic Performance 72
Stakeholder Engagement 42 Management Strategy
Foreword by the Board of 22 Material Topics of Sustainability 45 Supply Chain 73
Directors Report Served Market 74
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Achievement of 75
Operational and Financial
Performance Targets
Distribution of Economic 76
Performance
Indirect Economic Contribution 78
Sustainable Product 79
Maintaining the Growth of
Responsibility the Company’s Personnel
Human Resources Management 104
Occupational Health and Safety Management 115
Complaints on Labor and OHS Issues 119
Responsible
Environmental
Management
Environmental Impact 86
Community Social Development
Management Strategy
Community Development Strategy 122
Materials Used in Paint 89
Support for the Community 124
Production
CSR Implementation Costs 138
Energy Efficiency 91
Protection of the Rights of Indigenous Communities 138
Water Usage 93
Feedbacks on Corporate Social Responsibility Programs 138
Emissions Management 94
Waste Management and 97 Sustainability Report Responsibility 139
Utilization Written Verification from Independent Party 140
Biodiversity 99 Reader Survey 141
Environmental 100 Response to the Previous Year’s Report Reader Survey 143
Management Costs List of GRI Standards Indexes for 2021 – in Accordance 143
Complaints on 100 Cross Reference GRI Standards with SDGs 148
Environmental Issues List of Disclosures According to Financial Services Authority 154
Environmental Compliance 100 Regulation No. 51/POJK.03/2017 (“POJK 51/2017”)
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Sustainability Strategy
“The Company’s sustainability strategy directs business activities toward achieving Sustainable Development
Goals (“SDGs”), thereby providing value and benefits to stakeholders across 4 sustainability pillars: Product
Quality and Environment; Social, Labor, and Human Rights; Ethics and Governance; and Sustainable Procurement.
Furthermore, consistent implementation of sustainability strategies is expected to enable the Company to
actively address environmental and social humanitarian issues in the surrounding community.”
We continue to strive to become an integrated, environmentally friendly, leading, and
trusted paint manufacturing company in Indonesia through quality and sustainable
products. To realize this commitment, we have implemented the principle of
sustainability as an important basis in any operational activities and decision-making
processes. The sustainability policy that we have formulated is also always aligned
with the SDGs and the targets stipulated by the government and the world.
We believe that the consistent implementation of the sustainability
policy is an important asset for us to fulfill our commitment to
continue to create added value for all stakeholders.
Our sustainability policy is divided into 4 pillars, as described below: [POJK A.1]
General Policy
Complying with and fulfilling all relevant regulations and requirements of sustainable systems
1 (quality, environmental, social, labor, human rights, ethics, governance, and sustainable
procurement) and other requirements set by governments and stakeholders.
2 Planning, implementing, and monitoring best practices of sustainable systems (quality,
environmental, social, labor, human rights, ethics, governance, and sustainable procurement).
Planning, aligning, implementing, and monitoring our programs related to the Sustainable
3 Development Goals (“SDGs”) and continuously improving the programs with an aim to achieve
the 17 SDGs.
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Specific Policy
In implementing sustainable systems (quality, environmental, social, labor, human rights, ethics, governance,
and sustainable procurement), the Company also has a specific policy in place, categorized into four main
sustainability policy pillars as described below:
Product Quality Social, Labor, and Ethics and Sustainable
and Environment Human Rights Governance Procurement
Support for Sustainable Development Goals [GRI 2-24]
We are not only focused on creating sustainable growth from an economic aspect, but also ensuring environmental quality
as well as the welfare of the employees and the surrounding community through the implementation of sustainable
governance in every operational activity and resulting policy. This commitment is also part of our contribution to achieving
the Sustainable Development Goals (“SDGs”) targets that have been formulated by the government. Our commitment to
supporting the SDGs is described in more detail as follows:
Product Quality and Environment
Clean Water and Sanitation
6.3 Improving water quality by reducing pollution, eliminating dumping, and minimizing the release of hazardous
chemicals and materials, halving the proportion of untreated wastewater and substantially increasing
recycling and safe reuse globally.
Affordable and Clean Energy
7.2 Increasing, substantially, the share of renewable energy in the global energy mix.
Sustainable Cities and Communities
11.6.2 (b) Reducing adverse per capita urban environmental impacts, including with respect to air quality indexes.
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Product Quality and Environment
Responsible Consumption and Production
12.5 Substantially reducing waste generation through prevention, reduction, recycling, and reuse.
Climate Action
13.2 Integrating climate change measures into national policies, strategies, and planning.
Life Below Water
14.1.1 (a) Preventing and significantly reducing marine pollution of all kinds, including marine debris, by minimizing
waste discharge into the sea.
Life on Land
15.4 Ensuring the conservation of mountain ecosystems, including their biodiversity, in order to enhance their
capacity to provide benefits that are essential for sustainable development.
Sustainability Strategy
1. Formulating and implementing short-term, medium-term, and long-term goals, objectives, and programs by considering the
characteristics, scale, and impact in accordance with the environmental management system, energy management system, and
green industry, while continuously innovating.
2. Improving quality, competitive, and environmentally friendly products with efficient production costs.
3. Improving service quality, ensuring timely product delivery, meeting customer demands, and providing added value for customers.
4. Opting for materials and machinery with efficient energy use and low greenhouse gas effects for the manufacturing process.
5. Implementing energy efficiency measures and maximizing the use of new renewable energy through monitoring, implementing, and
encouraging design or development activities across the entire Company.
6. Conducting efforts to reduce greenhouse gas emissions for scopes one and two through monitoring and implementation across the
entire Company’s operations, up to reporting to stakeholders.
7. Encouraging the use of renewable materials and environmentally friendly chemicals.
8. Implementing raw material efficiency through monitoring, implementing, and encouraging design or development activities across
the entire Company.
9. Using water optimally and efficiently in Company activities as well as carrying out water conservation programs.
10. Conducting maintenance and control of air pollution control equipment and machinery.
11. Reducing and controlling Hazardous Material and Hazardous Waste.
12. Controlling non-hazardous solid waste through 3R (Reduce, Reuse, Recycle).
13. Conducting an inventory of water usage, outlets of wastewater, Hazardous and Non-Hazardous Waste, and air pollution.
14. Undertaking efforts to protect and conserve biodiversity.
15. Providing socialization of information related to the safety and security of product applications.
16. Identifying, conducting, and evaluating all company activities through Life Cycle Assessment/LCA integrated with environmental,
energy, and greenhouse gas emission aspects.
17. Involving the community in continuous improvement of the environmental management system.
Social, Labor, and Human Rights
No Poverty
1.1 Eradicating extreme poverty for all people living on less than $1.25 a day.
Zero Hunger
2.1 Ending hunger and ensuring access by all people, in particular the poor and people in vulnerable situations
including infants, to safe, nutritious and sufficient food all year round.
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Social, Labor, and Human Rights
Good Health and Well-Being
3.4 Reducing by one-third premature mortality from non-communicable diseases through prevention and treatment,
and promoting mental health and wellbeing.
3.5 Strengthening prevention and treatment of substance abuse, including narcotic drug abuse and harmful use of
alcohol.
3.9 Substantially reducing the number of deaths and illnesses from hazardous chemicals and air, water, and soil
pollution and contamination.
Quality Education
4.3 Ensuring equal access for all women and men to affordable and quality education.
4.7 Ensuring the acquisition of necessary knowledge and skills by all employees, to enhance sustainable development.
Gender Equality
5.5.2 Ensuring women’s full and effective participation and equal opportunities for leadership at all levels of
decision-making, by ensuring the proportion of women in managerial positions.
Decent Work and Economic Growth
8.5 Achieving full and productive employment as well as decent work for all women and men, including for young
people and persons with disabilities, and equal pay for work of equal value.
8.7 Taking immediate and effective measures to eradicate forced labour, end modern slavery and human trafficking
and secure the prohibition and elimination of the worst forms of child labour.
8.8 Protecting labor rights and promoting safe and secure working environments for all workers.
Industry, Innovation, and Infrastructure
9.2 Promoting inclusive and sustainable industrialization.
9.4 Upgrading infrastructure and retrofit industries to make them sustainable, with increased resource use efficiency and
greater adoption of clean and environmentally friendly technologies and industrial processes.
Reduced Inequalities
10.3 Ensuring equal opportunity and reducing outcome inequalities, including eliminating discriminatory laws, policies
and practices and promoting appropriate legislation, policies and actions in this regard.
Sustainability Strategy
1. Ensuring that all personnel within the Company are treated fairly and with dignity based on human rights principles.
2. Ensuring proper and regular participatory consultation processes with all stakeholders.
3. Providing safe and healthy working environments to eliminate hazards and reduce OHS (Occupational Health and Safety) risks.
4. Creating a work environment that is safe, comfortable, motivating, respectful, and free from all forms of harassment.
5. Providing funds and commitment to support the improvement of company personnel’s knowledge, skills, and competence.
6. Ensuring workers are above 18 years of age and that working hours and wage payments are in accordance with applicable laws and
regulations and that there is no human trafficking.
7. Providing equal employment opportunities and treatment regardless of gender, race, religion, color, ethnicity, class, and
non-discrimination to persons with disabilities.
8. Ensuring employee preparedness for retirement.
9. Upholding the freedom of assembly, expression, and participation in labor organizations/unions in accordance with the prevailing
laws and regulations as well as providing room to negotiate and consult with the Company.
10. Respecting the rights of local communities, including indigenous and traditional communities.
11. Participating in community empowerment.
12. Respecting the right of individuals to act without coercion and to maintain control over their personal information, as long as it does
not relate to or impact the Company.
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Ethics and Governance
Industry, Innovation, and Infrastructure
9.5.2 (a) Enhancing scientific research and upgrading the technological capabilities of industrial sectors by increasing the
proportion of human resources in science and technology.
Peace, Justice, and Strong Institutions
16.5 Substantially reducing corruption and bribery in all their forms.
Sustainability Strategy
1. Preventing and taking action against corruption, bribery, fraud, and money laundering.
2. Conducting recruitment and selection of employees free of charge.
3. Avoiding conflict of interest between employees within the Company.
4. Maintaining the ethics and confidentiality of company and supplier data.
5. Providing reliable infrastructure to manage all forms of risks or threats related to the Company’s data security and keeping up with
technological developments.
6. Ensuring secure, accurate, available data, ease of connection and a variety of user-friendly programs.
7. Ensuring the Company’s neutrality towards any political interests or groups by not being involved materially or non-materially.
Sustainable Procurement
Responsible Consumption and Production
12.2 Achieving sustainable management and efficient use of natural resources.
Partnerships for the Goals
17.1 Strengthening domestic resource mobilization to improve domestic capacity for tax and other revenue
collection.
17.16 Enhancing the global partnership for sustainable development, complemented by multi-stakeholder
partnerships that mobilize and share knowledge, expertise, technologies, and financial resources to support
the achievement of Sustainable Development Goals in all countries, particularly developing countries.
Sustainability Strategy
1. Selecting suppliers using environmental criteria.
2. Undertaking efforts to reduce scope three greenhouse gas emissions through supplier socialization and monitoring.
3. Selecting suppliers using social and human rights criteria.
4. Providing equal rights and opportunities to all local suppliers and women business owners.
5. Evaluating suppliers’ compliance with all Occupational Health and Safety (OHS) laws and regulations.
6. Selecting vendors and suppliers that do not have mineral conflicts in their procurement practices.
7. Selecting qualified and competitively priced suppliers in a transparent manner.
8. Supplier selection is not based on kinship interests, providing opportunities for multiple vendors to enter the tender process.
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SUSTAINABILITY TARGETS AND ACHIEVEMENTS
Sustainability Pillars Sustainability Target and 2023 Achievements
Target Improving environmentally friendly products.
Achievement A total of 29 products have received Singapore Green Label certification.
Target Achieving lead-free and chrome-free products by 2035.
Product Quality • Water-based products have reached 81.47%.
Achievement
• The Company successfully processed products containing lead and chromium
according to target, resulting in only 14.00% lead and chromium content
remaining.
Target Improving customer satisfaction.
Achievement Customer satisfaction survey results increased compared to the previous year,
from 3.33 to 3.40 out of a 4.00 scale with a good category. This assessment
includes product quality, delivery quality, and service quality.
Target • Reducing Scope 1 and 2 greenhouse gas (“GHG”) emissions by 35.00% in 2035
compared to the 2021 baseline.
• The target for renewable energy use is 3,600.00 GJ by 2035.
Achievement • GHG emissions decreased by 15.45% compared to 2021.
• Energy intensity decreased by 10.16%.
• Solar panel installation in 2023 increased by 660 units, bringing the total
Environment
installation to 1,228 solar panel units (720 units at the Sidoarjo plant and
508 units at the Serang plant).
• Total renewable energy use reached 504,097 kWh or equivalent to 1,814.71 GJ.
• Replacing 7 units of diesel forklifts with electric forklifts (1 unit at the Serang
plant and 6 units at the Sidoarjo plant).
Target The target for total carbon sequestration from tree planting is 3,705,100 kgCO2e
in 2035.
Achievement • Planting 10,000 trees (5,000 trees in 2022 and 5,000 trees in 2023) with a total
carbon sequestration of 765,100 KgCO2e.
• Planting 92 types of plants in the factory area with a total carbon sequestration
of 435,887 KgCO2e.
Target Reducing Scope 3 GHG emissions by 5.00% in 2035 compared to the 2024
baseline.
Achievement • Organizing socialization on Scope 3 GHG emissions reporting to all key
suppliers.
• Collecting key suppliers’ GHG emissions data and developing a Scope 3
inventory.
Target Reduced water intensity.
Achievement • Utilizing the Rainwater Harvesting system.
• Using reused water from tank washing as a raw material mixture.
Target Improved waste management.
Achievement • Reduction in disposed Hazardous Waste reached 6.36%.
• Product waste recycling ratio reached 11.91 kg/ton.
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SUSTAINABILITY TARGETS AND ACHIEVEMENTS
Sustainability Pillars Sustainability Target and 2023 Achievements
Target Zero Fatality and Zero Lost Time Injury (“LTI”).
Achievement OHS performance target related to zero fatality was achieved.
Target Training hours per employee reached 15.00 hours in 2023.
Social and
Labor Achievement Training hours per employee reached 15.13 hours, exceeding the target.
Target Stakeholder consultation and participation.
Achievement A total of 505 individuals from various stakeholder groups completed the
sustainability survey.
Target Increasing beneficiaries of community empowerment programs.
Achievement • Utilization of economically valuable waste in Wadungasih Village, Sidoarjo.
• Training for students of Buduran Vocational School 1, Surabaya Vocational
School 13, and students of Widya Mandala Surabaya University.
• Granting scholarships to 18 employees’ children.
Target Enforcing a culture of anti-corruption, bribery, and fraud within the Company
and all partners.
Achievement • The Company has a well-functioning whistleblowing system in place. Throughout
2023, 5 reports were submitted through the whistleblowing system. However,
upon verification, only 1 was related to anti-corruption offenses.
• The Internal Audit Unit also found 2 cases of alleged anti-corruption offenses
Ethics and through its audit activities.
Governance
• All corruption incidents above have been resolved in accordance with the
Company’s procedures and regulations.
Target Protecting confidentiality of information and preventing data breach.
Achievement • Development of Asset Management Program (“AMS”).
• Development of Document Control Program.
• Server Regeneration in the Data Center.
• Utilization of Network Monitoring Tools.
• Socialization and training on cyber security.
• Phishing Test.
• Providing consent forms for third-party data.
Target 100.00% of key suppliers have fulfilled the sustainability aspect.
Achievement • Assessment of 20% of key suppliers contributing to 80% of the total purchase
value.
• Socialization of sustainability policy to all key suppliers.
• Training on scope 3 GHG emissions disclosure to key suppliers.
Sustainable
Procurement • Ensuring suppliers do not have mineral conflicts.
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Evaluation of Sustainability Strategy Implementation
The Company periodically evaluates the effectiveness of the implementation of sustainability strategies and initiatives under
the pillars of Product Quality and Environment; Social, Labor and Human Rights; Ethics and Governance; and Sustainable
Procurement. This is part of the Company’s efforts to ensure that the Company’s targets and objectives in sustainability aspects
can be achieved with optimal results. Evaluation of sustainability strategy implementation involves the top management along
with related work units. [GRI 3-3]
Challenges in Implementing Sustainability Principles and Future Strategies [POJK E.5]
The implementation of sustainability principles in the Company’s operational activities has faced various challenges as well as
opportunities from various sources, both from internal and external environments. Information on those challenges and the
Company’s responses to them are described as follows:
CHALLENGES AND COMPANY RESPONSE
Internal Challenges:
Building sustainability awareness and culture.
Company Response:
Conducting regular socialization and training on sustainability for all employees.
External Challenges:
High demands from external stakeholders, especially investors, on the Company’s sustainability
achievements in a fairly short time.
Company Response:
The Company actively realizes its sustainability commitments by establishing targets and implementing
effective strategies to deliver tangible results, as reflected in improved ESG rating scores.
External Challenges:
Emerging new regulations and policies on sustainability and reporting thereof, both domestic and
international.
Company Response:
The Company continuously keeps updated with sustainability policy developments and makes maximum
adjustments to meet these requirements.
External Challenges:
Limited customer understanding and awareness of green products.
Company Response:
The Company actively conducts socialization on the importance of environmentally friendly products.
In addition to the above challenges, we also see opportunities from the implementation of sustainability principles that can
directly improve the Company’s quality and positive image. We are optimistic that consistent and comprehensive implementation
of sustainability principles can foster robust business resilience that will strengthen the Company’s competitiveness. Research
and development initiatives undertaken by the Company to create high-quality and environmentally friendly products provide
opportunities and strengths for the Company to remain the public’s first choice.
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Sustainability Performance
Overview
Sustainability of Economic Aspect [POJK B.1]
Description Unit 2023 2022 2021
Financial Performance
Net Revenue Million Rupiah 7,016,882 6,694,171 6,779,643
Profit for the Year Million Rupiah 1,643,096 1,400,365 1,434,551
Operational Performance
Manufacturing Volumes Metric Tons 180,540 170,986 205,382
Environmentally Friendly Products
Product Brand 29 24 16
(Singapore Green Label Certified Product Categories)
Product or Service Quantity Product Brand 96 88 80
Local Suppliers Engagement
Local Suppliers
Number of
Total Local Suppliers 219 209 231
Company
Percentage of Local Supplier Engagement by
% 77.94 76.00 75.24
Entity compared to Total Suppliers
Local Employees***
Total Local Employee People 7,577** 7,231** 6,739*
Percentage of Local Labor Involvement in the
% 89.38** 89.54** 87.25*
Company’s Operational Activities
Notes:
* The Company and TKTW;
** The Company, TKTW, and TKBI; and
*** 2021 and 2022 data are restated.
Sustainability of Environmental Aspect [POJK B.2]
Description Unit 2023 2022 2021
Energy Efficiency
Total Energy Usage GJ 213,912.86 211,334.51 224,403.17
GJ/Ton of
0.17 0.19 0.19
Product
kWh/Ton of
47.40 52.14 52.64
Energy Intensity Product
Thousand
Rupiah/ 38,590.51 42,783.20 48,439.40
Ton of Product
GJ/Ton of
Energy Efficiency 0.02 0 0.01
Product
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Sustainability Performance Overview
Description Unit 2023 2022 2021
Materials Used in Paint Production
Renewable Materials Purchase Ton 72,903.20 61,888.17 80,411.00
Non-Renewable Materials Purchase Ton 70,887.41 74,937.20 94,294.00
Total Material Purchase Ton 143,790.61 136,825.37 174,705.00
Emissions Management
Total of Scope 1 and Scope 2 Emissions TonCO2e 11,317.42 11,408.00 13,385.60
KgCO2e/Ton of
Intensity of Scope 1 and Scope 2 Emissions 23.27 25.15 24.83
Produc
Water Management
Total Water Usage Megaliter 141.68 113.98 130.26
Megaliter/Ton
Water Intensity 0.0009 0.0008 0.0008
of Product
Reduction of Hazardous Waste Generation
Reuse of Industrial Waste Ton 1,820.24 2,482.98 1,263.45
Reuse of Washing Solvent Ton 166.27 180.87* 230.05
Hazardous Waste
Ton 886.77 946.96 574.22
(liquid and solid managed by third parties)
Non-Hazardous Waste Ton 185.07 157.68 98.14
Discharge Water Megaliter 3.83 4.14 4.54
* Data restated.
Sustainability of Social Aspect [POJK B.3]
Description Unit 2023** 2022** 2021*
Community Development and Empowerment (Pengembangan dan Pemberdayaan Masyarakat or “PPM”)***
Number of PPM Program Total Program 98 27 13
Cost of PPM Program Million Rupiah 2,881 1,978 1,923
Manpower Management
Total Employees (Including Outsourcing) People 8,477 8,076 7,689
Total Female Employees (Including Outsourcing) People 1,723 1,625 1,409
Number of Participants in Competence Development People 6,173 3,096 3,420
Total Recordable Injury Rate Rate 2.16 2.01 2.40
Total Recordable Incident Frequency Rate Rate 2.69 1.74**** 2.30
Notes:
* AVIA and TKTW;
** AVIA, TKTW, and TKBI;
*** AVIA; and
**** Data restated.
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Significant Events
As a manifestation of our commitment to conducting responsible business activities that take into account climate change
impacts, throughout 2023, we have implemented a series of proactive initiatives as described below:
Increasing Renewable Energy Usage
The Company’s operational activities require a large energy supply
that is still predominantly sourced from non-renewable fossil fuels. We
realize that fossil energy use can generate environmentally harmful GHG
emissions, therefore we are gradually investing in renewable energy
utilization. To date, the Company has installed 1,228 units of solar panels
that produce up to 1,814.71 GJ of renewable energy.
Emissions Neutralization
Program
Our concern for emissions is not only manifested
through emission reduction but also by emission
neutralization programs. To date, we have planted
10,000 Kurmis Acacia (Acacia Auriculiformis) and
Trembesi (Samanea Saman) trees on the slopes
of Mount Arjuno, Pasuruan. These tree planting
programs contribute to up to 765,100 kgCO2e of
carbon sequestrations.
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Sustainability Performance Overview
Awards, Assessments, and Certifications
Awards
Our consistency in adopting best business practices has earned us positive recognition and awards from various stakeholders.
Information regarding awards received by the Company throughout 2023 is described as follows:
1 2 3 4 5 6 7
Recipient of the “Prevention and Mitigation
1 2 Zero Accident Award
Programs of Covid-19 in the Workplace” Award
Gold Category
Organizer : Ministry of Manpower of the Organizer : East Java Governor
Republic of Indonesia
Recipient : PT Avia Avian Tbk Recipient : PT Avia Avian Tbk
Period : 2023 Period : 2023
Overall Winner of the 2023 Katadata Corporate
3 4 Going Green is Good for Your Business
Sustainability Awards (KCSA)
Chemicals Sector Category
Organizer : Katadata Organizer : Xurya Daya Indonesia
Recipient : PT Avia Avian Tbk Recipient : PT Avia Avian Tbk
Period : 2023 Period : 2023
Indonesia Architectural Paints and Coatings
5 National PROPER Green Rating 6
Market Leadership Award
Organizer : Ministry of Environment and Organizer : Frost & Sullivan
Forestry of the Republic of Indonesia
Recipient : PT Avia Avian Tbk Recipient : PT Avia Avian Tbk
Period : 2023 Period : 2023
Green Industry Pioneer in Accelerating Sustainable Development in East Java
7 Organizer : East Java Governor
Recipient : PT Avia Avian Tbk
Period : 2023
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Assessment
The Company’s sustainability performance in ESG aspects has been recognized by various rating agencies. Information regarding
rating achieved by the Company throughout 2023 is described as follows:
Bronze Medal ESG Quality 45 IDX KEHATI Index
Organizer: Organizer:
EcoVadis Indonesia Stock Exchange and KEHATI Foundation
Awardee: Awardee:
PT Avia Avian Tbk PT Avia Avian Tbk
Period: Period:
2023 December 2023 - May 2024
Notes:
Bronze Medal in the Company’s sustainability practices assessment from EcoVadis is the first conducted assessment, and serves as a foundation for us to improve
the quality of sustainability practices implementation in the coming period.
Certification
We are committed to conducting our business responsibly and in compliance with all applicable laws and regulations, as well
as adopting the best practices aligned with national and international standards relevant to our industry. This commitment is
a crucial priority for us to ensure that our operational activities are managed properly, professionally, and in line with current
developments. Information regarding standards and certifications adopted and held by the Company up to the end of 2023 is
described as follows:
ISO SNI
Current issue date: 31 January 2023 Original approval(s):
Expiry date: 27 February 2024 ISO 9001 - 28 February 2007
Certificate identity number: 10499302
Certificate of Approval
This is to certify that the Management System of:
PT Avia Avian Tbk
Jl Raya Surabaya-Sidoarjo Km 19, Desa Wadungasih, Buduran Sidoarjo, East Java, Indonesia
has been approved by LRQA to the following standards:
ISO 9001:2015
Approval number(s): ISO 9001 – 0044727
This certificate is valid only in association with the certificate schedule bearing the same number on which the locations applicable
to this approval are listed.
The scope of this approval is applicable to:
Manufacture of paint, resin, can making and mortar product.
Luis Cunha
________________________
Area Operations Manager - North Asia & SAMEA
Issued by: LRQA Limited
LRQA Group Limited, its affiliates and subsidiaries and their respective officers, employees or agents are, individually and collectively, referred to in this clause as 'LRQA'.
LRQA assumes no responsibility and shall not be liable to any person for any loss, damage or expense caused by reliance on the information or advice in this document or
howsoever provided, unless that person has signed a contract with the relevant LRQA entity for the provision of this information or advice and in that case any responsibility or
liability is exclusively on the terms and conditions set out in that contract.
Issued by: LRQA Limited, 1 Trinity Park, Bickenhill Lane, Birmingham B37 7ES, United Kingdom
Page 1 of 2
1 2 1 2
International Standardization Organization (“ISO”)
Name of Certification Organizer Validity Period
ISO 45001:2018 on Occupational Health and Safety
PT Lloyd’s Register Indonesia October 27, 2021 – October 26, 2024
Management System
ISO 14001:2015 on Environmental Management System PT Lloyd’s Register Indonesia February 19, 2022 – February 18, 2025
ISO 50001:2018 on Energy Management System PT Lloyd’s Register Indonesia March 3, 2022 – March 2, 2025
ISO 9001:2015 on Quality Management System PT Lloyd’s Register Indonesia January 31, 2023 – February 27, 2024
ISO/IEC 27001:2013 on Information Security
Intertek Certification Limited February 17, 2023 – October 31, 2025
Management System
16 PT Avia Avian Tbk - 2023 Sustainability Report
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Painting a Beautiful Picture of Indonesia
Sustainability Performance Overview
Indonesian National Standard (“SNI”)
Name of Certification Product Type Organizer Validity Period
SNI 3564:2014 Sunguard Exterior Chempack Product Certification Institute of the
Aquamatt, Aries Gold, Center for Standardization and Services of Chemical, Until November
SNI 3564:2014 Avitex, Everglo, Interior Pharmaceutical, and Packaging Industry, Ministry of 3, 2026
Supersilk, and No Odor Industry of the Republic of Indonesia
Green Label Singapura
PT. Avia Avian PT. Avia Avian PT. Avia Avian PT. Avia Avian Tbk
Jl. Raya Surabaya – Sidoarjo Km 19, Desa Wadung Asih, Jl. Raya Surabaya – Sidoarjo Km 19, Desa Wadung Asih, Jl. Raya Surabaya – Sidoarjo Km 19, Desa Wadung Asih, Jl. Raya Surabaya – Sidoarjo Km 19, Desa Wadungasih,
Buduran, Sidoarjo 61252, Indonesia Buduran, Sidoarjo 61252, Indonesia Buduran, Sidoarjo 61252, Indonesia Buduran, Sidoarjo-East Java -Indonesia 61252
AVITEX ALKALI RESISTING PRIMER AVITEX WIZZ BRILIANT EXTERIOR NO DROP BASIC
032-219-4089 032-219-4119 032-219-4150 032-219-4149
Environmentally Preferred Paint Environmentally Preferred Paints & Surface Coatings Environmentally Preferred Paints & Surface Coatings Environmentally Preferred Paints & Surface Coatings
(In accordance to SEC Green Label Category 32: Paints and Surface Coatings) (In accordance to SEC Green Label Category 32: Paints and Surface Coatings) (In accordance to SEC Green Label Category 32: Paints and Surface Coatings) (In accordance to SEC Green Label Category 32: Paints and Surface Coatings)
Validity: 19 January 2023 to 18 January 2025 Validity: 23 March 2023 to 22 March 2025 Validity: 14 June 2023 to 13 June 2025 Validity: 14 June 2023 to 13 June 2025
1 2 3 4
The Singapore Environment Council hereby grant
PT. Avia Avian TBK PT. Avia Avian TBK PT. Avia Avian TBK PT. Avia Avian TBK
Jl. Raya Surabaya – Sidoarjo Km 19, Desa Wadungasih, Jl. Raya Surabaya – Sidoarjo Km 19, Desa Wadungasih, Jl. Raya Surabaya – Sidoarjo Km 19, Desa Wadungasih, Jl. Raya Surabaya – Sidoarjo Km 19, Desa Wadungasih,
Buduran, Sidoarjo-East Java -Indonesia 61252 Buduran, Sidoarjo-East Java. Indonesia 61252 Buduran, Sidoarjo-East Java. Indonesia 61252 Buduran, Sidoarjo-East Java. Indonesia 61252
_____________________________
BRILLIANT CAT TEMBOK
JEN TEO INTERIOR SUNGUARD EVERGLO SUPERSILK
Executive Director
038-219-4164 032-219-3921 032-219-3926 032-219-3922
Singapore Environment Council
Environmentally Preferred Paints & Surface Coatings Environmentally Preferred Paints & Surface Coatings Environmentally Preferred Paints & Surface Coatings Environmentally Preferred Paints & Surface Coatings
(In accordance to SEC Green Label Category 32: Paints and Surface Coatings) (In accordance to SEC Green Label Category 32: Paints and Surface Coatings) (In accordance to SEC Green Label Category 32: Paints and Surface Coatings)
(In accordance to SEC Green Label Category 32: Paints and Surface Coatings)
Validity: 25 November 2023 to 24 November 2025 Validity: 25 November 2023 to 24 November 2025 Validity: 25 November 2023 to 24 November 2025
Validity: 19 July 2023 to 18 July 2025
5 6 7 8
PT. Avia Avian TBK PT. Avia Avian TBK PT. Avia Avian TBK PT. Avia Avian TBK
Jl. Raya Surabaya – Sidoarjo Km 19, Desa Wadungasih, Jl. Raya Surabaya – Sidoarjo Km 19, Desa Wadungasih, Jl. Raya Surabaya – Sidoarjo Km 19, Desa Wadungasih, Jl. Raya Surabaya – Sidoarjo Km 19, Desa Wadungasih,
Buduran, Sidoarjo-East Java. Indonesia 61252 Buduran, Sidoarjo-East Java. Indonesia 61252 Buduran, Sidoarjo-East Java. Indonesia 61252 Buduran, Sidoarjo-East Java. Indonesia 61252
AVITEX DAPUR & KAMAR MANDI AQUAMATT LENKOTE ALKALI RESISTING PRIMER NO ODOR
032-219-3927 032-219-3923 032-219-3924 032-219-3925
Environmentally Preferred Paints & Surface Coatings Environmentally Preferred Paints & Surface Coatings Environmentally Preferred Paints & Surface Coatings Environmentally Preferred Paints & Surface Coatings
(In accordance to SEC Green Label Category 32: Paints and Surface Coatings) (In accordance to SEC Green Label Category 32: Paints and Surface Coatings) (In accordance to SEC Green Label Category 32: Paints and Surface Coatings) (In accordance to SEC Green Label Category 32: Paints and Surface Coatings)
Validity: 25 November 2023 to 24 November 2025 Validity: 25 November 2023 to 24 November 2025 Validity: 25 November 2023 to 24 November 2025 Validity: 25 November 2023 to 24 November 2025
9 10 11 12
PT. Avia Avian TBK PT. Avia Avian TBK
Jl. Raya Surabaya – Sidoarjo Km 19, Desa Wadung Asih, Jl. Raya Surabaya – Sidoarjo Km 19, Desa Wadung Asih,
Buduran, Sidoarjo 61252, Indonesia Buduran, Sidoarjo 61252, Indonesia
NO DROP ANTI PANAS AVITEX GOLD
032-219-3937 032-219-3938
Environmentally Preferred Paints & Surface Coatings Environmentally Preferred Paints & Surface Coatings
(In accordance to SEC Green Label Category Category 32: Paints and Surface Coatings)
(In accordance to SEC Green Label Category Category 32: Paints and Surface Coatings)
Validity: 23 December 2023 to 22 December 2025
Validity: 23 December 2023 to 22 December 2025
William Wong William Wong
Assistant Executive Director Assistant Executive Director
13 14
2023 Sustainability Report - PT Avia Avian Tbk 17
Page 20
Product Organizer Validity Period
Avitex 4 Kids Singapore Environment Council Until February 26, 2024
Everglo Kids Care Singapore Environment Council Until February 26, 2024
Supersilk Anti-Noda Singapore Environment Council Until May 29, 2024
Lenkote Home Deco Metallic Paint Gold Singapore Environment Council Until July 24, 2024
Sunguard All-In-One Singapore Environment Council Until August 7, 2024
Avitex Anti Viruz Interior Paint Singapore Environment Council Until August 19, 2024
Home Deco Glow In The Dark Interior Paint Singapore Environment Council Until August 19, 2024
Home Deco Magnetic Interior Paint Singapore Environment Council Until August 19, 2024
No Odor Medicare Singapore Environment Council Until September 5, 2024
Home Deco Glitz Singapore Environment Council Until September 9, 2024
Wood Eco Woodstain Water-Based Singapore Environment Council Until November 9, 2024
Avitex Eksterior Singapore Environment Council Until November 9, 2024
Boyo Special Politur Vernis Water-Based Singapore Environment Council Until November 9, 2024
No Lumut Water-Based Singapore Environment Council Until November 9, 2024
Avitex One Coat Singapore Environment Council Until December 21, 2024
Avitex Alkali Resisting Primer Singapore Environment Council Until January 18, 2025
Avitex Wizz Singapore Environment Council Until March 22, 2025
Brilliant Exterior Singapore Environment Council Until June 13, 2025
No Drop Basic Singapore Environment Council Until June 13, 2025
Brilliant Cat Tembok Interior Singapore Environment Council Until July 18, 2025
Sunguard Singapore Environment Council Until November 24, 2025
Everglo Singapore Environment Council Until November 24, 2025
Supersilk Singapore Environment Council Until November 24, 2025
Avitex Dapur & Kamar Mandi Singapore Environment Council Until November 24, 2025
Aquamatt Singapore Environment Council Until November 24, 2025
Lenkote Alkali Resisting Primer Singapore Environment Council Until November 24, 2025
No Odor Singapore Environment Council Until November 24, 2025
No Drop Anti Panas Singapore Environment Council Until December 22, 2025
Avitex Gold Singapore Environment Council Until December 22, 2025
Domestic Component Level
1 2 3
18 PT Avia Avian Tbk - 2023 Sustainability Report
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Painting a Beautiful Picture of Indonesia
Sustainability Performance Overview
4 5 6 7
8 9 10 11
12 13 14 15
16 17 18 19
20 21 22 23
2023 Sustainability Report - PT Avia Avian Tbk 19
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Product Organizer Validity Period
Aries Gold Ministry of Industry of the Republic of Indonesia Until September 15, 2026
Avian Aluminium Ministry of Industry of the Republic of Indonesia Until September 15, 2026
Avian Cat kayu dan Besi Ministry of Industry of the Republic of Indonesia Until September 15, 2026
Avian Zinc Chromate Ministry of Industry of the Republic of Indonesia Until September 15, 2026
Avitex Alkali Resisting Primer Ministry of Industry of the Republic of Indonesia Until September 15, 2026
Avitex Anti Viruz Ministry of Industry of the Republic of Indonesia Until September 15, 2026
Avitex Cat Genteng Ministry of Industry of the Republic of Indonesia Until September 15, 2026
Avitex Exterior Ministry of Industry of the Republic of Indonesia Until September 15, 2026
Avitex Plamir Tembok Ministry of Industry of the Republic of Indonesia Until September 15, 2026
Avitex Ministry of Industry of the Republic of Indonesia Until September 15, 2026
Boyo Politur Vernis Solvent-Based Ministry of Industry of the Republic of Indonesia Until September 15, 2026
Lenkote Wall Sealer Ministry of Industry of the Republic of Indonesia Until September 15, 2026
No Drop Anti Panas Ministry of Industry of the Republic of Indonesia Until September 15, 2026
No Drop Ministry of Industry of the Republic of Indonesia Until September 15, 2026
No Odor Medicare Ministry of Industry of the Republic of Indonesia Until September 15, 2026
Supersilk Anti Noda Ministry of Industry of the Republic of Indonesia Until September 15, 2026
Suzuka Cat Duco Otomotif Ministry of Industry of the Republic of Indonesia Until September 15, 2026
Avian Paving Paint Ministry of Industry of the Republic of Indonesia Until October 19, 2026
Avian Roadline Paint Ministry of Industry of the Republic of Indonesia Until October 19, 2026
Avitex Gold Ministry of Industry of the Republic of Indonesia Until October 19, 2026
Sunguard All-In-One Ministry of Industry of the Republic of Indonesia Until October 19, 2026
Sunguard Ministry of Industry of the Republic of Indonesia Until October 19, 2026
Supersilk Ministry of Industry of the Republic of Indonesia Until October 19, 2026
By obtaining certifications for the Indonesian National Standard (Standar Nasional Indonesia or “SNI”), Singapore Green
Label (“GLS”), and Domestic Component Level (Tingkat Komponen Dalam Negeri or “TKDN”), we demonstrate our ongoing
commitment to improving product quality by delivering products that are safe for both the consumers and the environment.
In obtaining these certifications, we have passed a series of auditing processes, including the use of renewable raw materials,
standardized production processes, and product safety related to hazardous substances such as lead and chromium. To date,
7 products have obtained the SNI certification, while 29 products have received the GLS certifications, and 23 products have
received the TKDN certifications, as listed in the table above.
Other Certifications
Green Industry Certification
Organizer:
Green Industry Certification Institute of the Center for Standardization and Services of Chemical,
Pharmaceutical, and Packaging Industry, Ministry of Industry of the Republic of Indonesia
Validity Period:
September 8, 2022 – September 7, 2026
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Painting a Beautiful Picture of Indonesia
Sustainability Performance Overview
Membership in Associations
[GRI 2-28] [POJK C.5]
We actively participate in various organizations
related to our business activities and our status as a Indonesian Public Listed Companies Association
public company to develop our network and obtain
• Scale : National
updated information on the business environment.
• Status of the Company : Member
Information regarding the Company’s membership
in associations is described below:
PT AVIA AVIAN
007/APCI/2022
Indonesian Paint Producers Association
• Scale : National
• Status of the Company : Member
SK Menkumham RI No. C-54.HT.01.03 Tahun 2006
Badan Pengurus ARSI menetapkan dan menganugerahkan
SERTIFIKAT KEANGGOTAAN
Kepada :
PT. AVIA AVIAN
Sebagai Anggota Asosiasi Resin Sintetik Indonesia
Nomor : 006.DES.ARSI.XII.17
Jakarta, 19 Desember 2017
Badan Pengurus
Asosiasi Resin Sintetik Indonesia
Ketua Umum, Sekretaris Umum,
Fahrurrozi Utun Sutrisna Sastrawijaya
Indonesian Synthetic Resin Association
• Scale : National
• Status of the Company : Member
Net Zero of Indonesian Chamber of Commerce and
Industry*
• Scale : National
• Status of the Company : Member
* The Company’s membership in the Net Zero of the Indonesian Chamber of
Commerce and Industry association lasted until July 2023.
2023 Sustainability Report - PT Avia Avian Tbk 21
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Foreword by the
Board of Directors [GRI 2-22] [POJK D.1]
Wijono Tanoko
President Director
Dear Valued Shareholders and Stakeholders,
All praise and gratitude go to God Almighty, for His abundant grace that always accompanies
the journey of PT Avia Avian Tbk (the “Company”) in sustainably contributing through paint
products that not only present beautiful colors, but also concern for the environment.
Throughout 2023, we have implemented strategies that reflect our perseverance and
commitment to innovation, sustainability, and excellence in quality so that the Company is able
to optimize opportunities to move forward and make a positive impact on the surrounding
environment and society.
22 PT Avia Avian Tbk - 2023 Sustainability Report
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Painting a Beautiful Picture of Indonesia
Foreword by the Board of Directors
A summary of the Company’s journey, the sustainable initiatives we implemented, and the significant achievements we made
throughout the year are presented below.
Sustainability Commitment and Values
Our commitment to sustainability has become the main foundation that inspires each step and decision we take to realize our
vision of becoming an integrated, environmentally friendly, leading and trusted paint manufacturing company in Indonesia. We
also believe that sustainability is not just a goal, but also a guiding principle in our strategic decision-making, thereby forming
a strong foundation to build a company that excels not only in business, but also in environmental and social responsibility.
We realize this commitment by integrating sustainability principles in every business decision, from the supply chain to
the products we manufacture, so that we can manage the resulting impacts.
With this commitment, we strive to deliver sustainable solutions in every aspect of the Company’s operations. It involves
integrating our corporate values, summarized in “CInTA”, with our sustainability policies, categorized into four main pillars:
Product Quality and Environment; Social, Labor and Human Rights; Ethics and Governance; and Sustainable Procurement. The
formulation of these pillars has also incorporated measurable targets that the Company wants to achieve, aligning them with
the Sustainable Development Goals (“SDGs”) as part of the Company’s contribution to achieving global development targets.
Policies and Strategies in Responding to Sustainability Challenges
The Company’s contribution and support for sustainable development will be heavily influenced by the Company’s effectiveness
in implementing sustainable initiatives, particularly in the economic aspect. Our success in achieving economic targets is key to
increasing our contribution and support for sustainable development. To accomplish these economic targets, we continuously
focus on our competitive advantages, including our comprehensive product diversification and extensive distribution network
in all regions of Indonesia. Both advantages play a vital role in strengthening the Company’s competitiveness so that we
can fully optimize existing market share and opportunities. In addition, prudent and proactive risk management is integral
to our strategy of mitigating potential risks that may affect the Company’s economic performance and sustainability. By
ensuring sustainable economic growth, we can strengthen our position as an environmentally and socially responsible company.
From the environmental aspect, there is a greater push from stakeholders to integrate sustainability into our day-to-
day activities, particularly regarding the risk of climate change impacts. In facing these challenges, we are directing
efforts towards developing products that are not only excellent in quality, but also support environmental sustainability.
Our operational policies place particular emphasis on energy efficiency, use of renewable energy sources, carbon
emission reduction and responsible resource management as key elements. We have also designed a holistic strategy
to minimize our environmental footprint. We are focused on not only minimizing the climate impact of our business
operations, which includes carbon neutralization initiatives through tree planting, but also introducing innovations
across the supply chain to enhance energy efficiency and reduce carbon emissions to the greatest extent feasible.
Furthermore, we undertake proactive measures in resource management, including efforts in water conservation,
waste management, and selection of environmentally friendly raw materials.
As for the social aspect, the Company’s presence in the community must positively contribute to the development and well-
being of the surrounding community. Strategies we adopt for these challenges involve implementing fair and responsible labor
practices; focusing on occupational health and safety (“OHS”) aspects, and carrying out corporate social responsibility (“CSR”)
activities in various fields such as education and the environment. Implementation of fair and responsible labor practices is a
priority to create a healthy and productive work environment. Furthermore, the OHS aspect is also integral to our sustainability
strategy, with the aim to create a safe and healthy working environment for all the Company’s employees. As for the CSR
programs, we are committed to contributing positively through the Avian Brands Peduli program. We have also engaged local
parties in the Company’s business activities, both as suppliers and workforce.
2023 Sustainability Report - PT Avia Avian Tbk 23
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We understand that sustainability is not an end goal, but an ongoing journey involving collaboration with all stakeholders.
By integrating sustainability principles into every strategic decision, we believe that the Company can minimize its impact on
the surrounding environmental and social conditions.
Achievement of Sustainability Performance and Targets
Through consistent implementation of sustainability strategies, the Company managed to maintain a positive sustainability
performance in 2023. The Company’s performance in that year reflected a strong commitment to sustainability in all aspects
of operations. Several key achievements that can be highlighted include increasing production efficiency, optimizing energy
use, and reducing carbon emissions in operational processes. In addition, we successfully expanded our distribution network,
achieved an increase in sales, and created innovative environmentally friendly products.
As part of our sustainability efforts, we remain committed to meeting our sustainability targets. From an economic aspect, the
Company has a sustainable growth target that focuses on product diversification to strengthen competitiveness in the market.
In 2023, the manufacturing output reached 180,540 metric tons or 99.61% of the target, an increase of 5.59% compared to
the previous year. This growth is consistent with the 2023 net revenue reaching IDR7,016.88 billion or 98.89% of the target, an
increase of 4.82% compared to the previous year. In addition to boosting revenue, the Company also continues to improve
operational efficiency by prioritizing innovation in manufacturing and distribution. This resulted in an increase in profit for the
year to IDR1,643.10 billion or 102.03% of the target, an increase of 17.33% compared to the previous year.
In line with that, we also continue to realize innovations in order to develop the Company’s environmentally friendly product
portfolio. In 2023, we succeeded in reducing the lead and chrome content in products to only 14.00%, exceeding the
target. In addition, the target of increasing the number of products certified by the Singapore Green Label has also been
realized with a 20.83% increase to 29 products.
In terms of the environmental aspect, we establish a target to reduce our environmental impact further by continuing to reduce
carbon emissions. In 2023, we managed to add solar panel installations to 1,228 units, increasing the use of renewable energy
to 504,097 kWh or 1,814.71 GJ. Likewise, carbon neutralization efforts through tree planting on Mount Arjuno, which have been
conducted since the previous year, were successfully expanded to 10,000 trees, resulting in up to 765,100 KgCO2e of carbon
sequestration. We also planted 92 plant types around our factories, resulting in up to 435,887 KgCO2e carbon sequestered.
In addition to our commitment to addressing climate impacts, we also encourage the optimization of the use of renewable
materials. In addition, we are also working to improve environmentally friendly practices in every manufacturing stage so that
we are able to reduce our Hazardous Waste by 6.36%.
From the social aspect, the Company sets a target to expand its positive impact on stakeholders. For our employees, we
strive to improve employment policies that support employee development while protecting their health and safety. In
2023, we managed to increase the number of employee training hours per person by 125.82% to 15.13 hours. In line with
that, we also recorded zero fatal work accidents. On the other hand, the Company’s target to increase the beneficiaries
of community empowerment programs was well realized through various CSR programs that were implemented with
a focus on education and the environment. A total of 98 programs were successfully realized in 2023, an increase of
262.96% compared to the previous year. The cost allocation to support the program implementation reached IDR2,88 billion.
With solid 2023 performance, the Company is confident that its commitment to sustainability will continue to strengthen its
position as a responsible and sustainable company in the paint industry. This is supported by various awards and positive
recognitions achieved by the Company throughout 2023, such as the Indonesia Architectural Paints and Coatings Market
Leadership Award from Frost & Sullivan, Overall Winner award in the 2023 Katadata Corporate Sustainability Awards (KCSA) for
the Chemicals Sector category from Katadata, Green Industry Pioneer in Accelerating Sustainable Development in East Java
from the Governor of East Java, Going Green is Good for Your Business from Xurya Daya Indonesia, and Zero Accident Award
from the Governor of East Java.
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Painting a Beautiful Picture of Indonesia
Foreword by the Board of Directors
Sustainability Prospect
In facing the future, the Company views sustainability prospects with optimism and determination to continue to maintain its
position as a pioneer in responsible business practices. We are committed to continuously improving operational efficiency,
product innovation, and environmental sustainability. In addition, we will continue to develop sustainable partnerships with
relevant parties, including the government, communities, and other stakeholders. In the economic aspect, we will continue to
strive to expand our market share and improve our competitiveness through product diversification, development of innovative
marketing strategies, and expansion of our distribution reach. We will also continue to invest in increasing manufacturing
capacity through the construction of new plants to maximize sustainable growth opportunities in the future.
In the environmental context, the Company will continue to make efforts to reduce environmental impacts, including waste
management and carbon emissions. We will intensify efforts in energy efficiency improvement and sustainable use of resources.
On the social aspect, we will continue with our CSR programs focusing on community development, both in education and
the environment. We are also committed to empowering local parties through supplier engagement and job creation. By
adopting these strategies, we believe that sustainability is not just a responsibility, but also an opportunity to generate
long-term value for the Company and all stakeholders.
Appreciation
To conclude, we would like to express our appreciation and gratitude to the Board of Commissioners and all employees
for their utmost dedication to realizing the Company’s Vision and Mission. Hard work, innovation, and the collaborative
spirit instilled by every Company personnel have established a solid foundation to achieve such outstanding sustainability
performance. We also express our appreciation and gratitude to our Shareholders, business partners, customers, government,
and the wider community who have supported and trusted the Company throughout this journey of sustainability.
Contributions and support from all parties are the main drivers of our success in carrying out sustainable business practices.
We believe that with continuous commitment, the Company will keep growing as a forward-looking, responsible company
that is able to create a positive impact on the environment and surrounding communities. We look forward to the next journey
of sustainability and creating a better future together.
On behalf of the Board of Directors of
PT Avia Avian Tbk,
Wijono Tanoko
President Director
2023 Sustainability Report - PT Avia Avian Tbk 25
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About the Company “The Company is the paint market leader in Indonesia as well as one of the biggest paint manufacturers in Asia. In maintaining this advantage, the Company is supported by an integrated, cutting-edge, and trusted business ecosystem. In addition, its current business management, including product innovation, has prioritized environmentally conscious concepts and practices.” 26 PT Avia Avian Tbk - 2023 Sustainability Report
Page 29
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Company
Information
Company Name [GRI 2-1]
PT Avia Avian Tbk
Business Sector [GRI 2-6]
Manufacture and trade of paints and printing inks, varnishes, lacquers,
adhesives or glues, mortar or ready-mixed concrete.
Date of Establishment
Social Media: March 1, 1983
Legal Basis of Establishment [GRI 2-1]
avian.brands PT Avia Avian was established based on Deed of Establishment of
Limited Liability Company No. 06 dated March 1, 1983, as amended by
Deed No. 63 dated May 23, 1983, both drawn up before Indrawati
Setiabudhi, S.H., a Notary in Malang. The deed has been approved by
the Minister of Justice of the Republic of Indonesia by the Resolution
@avianbrands
of the Ministry of Justice of the Republic of Indonesia with Decree
No. C2-4948.HT01.01 Th83. dated July 5, 1983 and has been registered
with the Malang District Court No. 016/PP/PI/VIII/1983 dated
August 8, 1983.
Avian Brands
Legal Form Status Total Employees of AVIA, TKTW, and TKBI
[GRI 2-1] (including Outsourced Employees)
Limited Liability Company Male: Female:
6,754 employees 1,723 employees
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Painting a Beautiful Picture of Indonesia
About the Company
Listing of Shares on the Stock Exchange Headquarter [GRI 2-1] [POJK C.2]
December 8, 2021 on the Indonesia Stock Exchange Jl. Raya Surabaya – Sidoarjo KM. 19
Desa Wadungasih, Kec. Buduran, Sidoarjo, 61252
Jawa Timur, Indonesia
Stock Code (62-31) 8968000
AVIA corsec@avianbrands.com
investor.relations@avianbrands.com
www.avianbrands.com
Shareholding [GRI 2-1]
as of December 2023
Branch Office
Avian Brands Building
Jl. Ahmad Yani No. 317, Surabaya, 60234
Jawa Timur, Indonesia
(62-31) 99850500/99850600
Address of Manufacturing Facilities [GRI 2-1]
Sidoarjo
Jl. Raya Surabaya – Sidoarjo KM. 19
PT Tancorp Surya Sentosa : 36.60% Desa Wadungasih, Kec. Buduran, Sidoarjo, 61252
PT Wahana Lancar Rejeki : 32.49% Jawa Timur, Indonesia
Archipelago Investment Pte Ltd : 6.30% (62-31) 8968000
Robert Christian Tanoko : 2.30% Serang
Rudi Tanoko : 1.68% Jl. Raya Serang KM. 60
Rony Tanoko : 1.68% Kawasan Pancatama 5 Kav. 50, Leuwilimus
Treasury Stock : 0.06% Leuwi Limus, Cikande, Kabupaten Serang, 42186
Public* : 18.89% Banten, Indonesia
*Each below 5% (62-254) 402655
2023 Sustainability Report - PT Avia Avian Tbk 29
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Sustainability Vision and Mission [POJK C.1]
VISION
“To become an integrated,
environmentally friendly, leading and
trusted paint company in
Indonesia.”
MISSION
VISI
“To provideperusahaan
“Menjadi added value to
cat
stakeholders through
yang terintegrasi, the development
ramah lingkungan,
of various
terdepan quality di
dan terpercaya
paints.” ”
Indonesia.
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Painting a Beautiful Picture of Indonesia
About the Company
Company Values
Customer Focus
C Able to make (internal and external) customers and their needs as the main focus in a positive
and productive working relationship.
Integrity
In Be honest in words, have the commitment and consistency in acting according to rules,
norms, and morality.
Teamwork
T Ability to be part of a group, work with the group members, and contribute to the achievement
of the group’s goals.
Agility
A Ability to be agile, flexible, and assertive in anticipating, initiating, and taking advantage of
any opportunity as well as to avoid negative consequences from the changes.
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Business, Product, and Service Segments
[GRI 2-6] [POJK C.4]
In accordance with the segment information disclosed in the Company’s Consolidated Financial Statements audited by a
Public Accounting Firm (Kantor Akuntan Publik or “KAP”), the Company conducts business activities in two business segments,
i.e., architectural solutions and trading goods segments. More information concerning the two business segments has been
described in the Annual Report which is prepared separately from this report.
Wood Care Glue
No Drop
No Drop Bitumen Black
No Drop Plaston
No Drop Mortar
No Drop Tape
No Drop Anti Panas Boyo Series
Admiral Cat Kapal No Drop Plus 3 in 1 Wood Eco Series
Avian Cat Kayu dan Besi No Drop Basic
Avian Cling Zinc Chromate Lem Putih VIP PVAc
Glovin Cat Kayu dan Tembok Admiral Wood Filler Epoxy
Yoko Cat Kayu dan Tembok Avian Non-Sag Epoxy Super Roof Paint
Avian 3 in 1 Anti Karat Waterproofing Wo
Avian Lem Epoxy Hemat
Avian Cling Synthetic tal Avian Lem Epoxy
Platinum Me
d & od
Gl Viplas
an
Ca
ctural Solut
ue
od
re
ite
Sunguard Absolute Roof
io
Wo
h
Sunguard Coating
All-In-One Avitex Cat Instant Cement
c
ns
Genteng & Seng
Ar
Supersilk
Anti Noda Yoko Cat
Supersilk Genteng & Seng
Aquamatt Giant Mortar
220
Avitex
Cat Tembok Giant Mortar
270
Avitex Eksterior
Giant Mortar
Avitex Anti Viruz 380
er s
Avitex Gold
Wal
Giant Mortar
Aries Cat Tembok 420
O th
l
Aries Gold Giant Mortar
Aries Bling L500
Trading Suzuka Cat Duco Autorefinish & Spray Paint
Avitex Wizz
Otomotif
HomeDeco Glow In
The Dark
G oods Suzuka Spray
HomeDeco Glitz Admiral Thinner
Serbaguna
ng
HomeDeco Metallic Pipe orti
Supp ucts VIP Pengupas Cat Tembok
Brilliant Cat Tembok Interior s Furniture Prod VIP Paint Remover
Brilliant Cat Tembok
Eksterior
Thinner
nd
Bra
Power
Power Max Homecare
Quad
Activ
Wall Paint Peeler
uct
d
Pro
32 PT Avia Avian Tbk - 2023 Sustainability Report
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Painting a Beautiful Picture of Indonesia
About the Company
Category Product Name
Wall Paint • Avitex Wizz; • Everglo Kids Care; • Avitex One Coat;
• Aries Bling; • No Odor Medicare; • Avitex Cat Tembok Dapur &
• Brilliant Cat Tembok Interior; • No Odor; Kamar Mandi;
• Brilliant Cat Tembok Eksterior; • Supersilk Anti Noda; • Jasmine;
• Avitex Gold; • Supersilk; • Fres;
• Avitex Anti Viruz; • Aquamatt; • Aries Gold; and
• Sunguard All-In-One; • Avitex Eksterior; • Aries Cat Tembok.
• Sunguard; • Avitex 4kids;
• Everglo; • Avitex Cat Tembok;
Special Effect Paint • HomeDeco Glow In The Dark; • HomeDeco Glitz; and • HomeDeco Metallic.
• HomeDeco Magnetic;
Waterproofing • No Drop Plus 3in1; • No Drop Bitumen Black; • No Drop Membrane; and
• No Drop Basic; • No Drop 100; • PRO-X 207.
• No Drop Anti Panas; • No Drop Mortar Anti Bocor;
• No Drop; • No Drop Tape;
Wood and Metal Paint • Admiral Cat Kapal; • Avian Cat Kayu dan Besi; • Avian Cat Alumunium; and
• Avian Cling Synthetic; • Glovin Cat Kayu dan Besi; • Avian 3 in 1 Anti Karat.
• Platinum; • Yoko Cat Kayu dan Besi;
Wood Care • Boyo Politur Melamin; • Boyo Politur Vernis Water-Based; • Boyo Wood Filler Solvent-Based;
• Wood-Eco Woodstain • Boyo Politur Vernis Solvent-Based; • Boyo Sanding Sealer NC
Water-Based; • Wood-Eco Politur Interior P01; Solvent-Based; and
• Wood-Eco Woodstain • Wood-Eco Politur Eksterior P03; • Boyo Clear Coat NC
Solvent-Based; • Boyo Wood Stain Solvent-Based; Solvent-Based.
Primer • Avian Cling Zinc Chromate; • Avitex Alkali Resisting Primer; • Belmas Zinc Chromate; and
• Lenkote Alkali Resisting Primer; • Avian Zinc Chromate; • Suzuka Epoxy Filler.
• Lenkote Wall Sealer; • Yoko Cat Dasar Kayu dan Besi;
Putty • Lenkote Plamir Tembok (Wall Putty); • Avitex Plamir Tembok; • Giant Mortar 220.
• No Odor Wall Putty; • Aries Gold Wall Putty; and
Roof Paint • Absolute Roof Coating; • Avitex Cat Genteng & Seng; and • Yoko Cat Genteng & Seng.
Instant Cement • Giant Mortar 260; • Giant Mortar 380; • Giant Mortar 480; and
• Giant Mortar 270; • Giant Mortar 420; • Giant Mortar 510.
Glue • Avian Lem Epoxy Hemat; • Lem Putih MAX PVAc; • Avian Lem Epoxy Super; and
• Admiral Wood Filler Epoxy; • Viplas; • Avian Non-Sag Epoxy Super.
• Lem Putih VIP PVAc;
Stone Coating • No Lumut Solvent-Based; and • No Lumut Water-Based.
Autorefinish and • Suzuka Spray; • Suzuka 2:1 PU Clear Coat; and • Suzuka 4:1 PU Clear Coat.
Spray Paint • Suzuka Cat Duco Otomotif;
Floor Coating • Avian Roadline Paint; and • Avian Cat Paving.
Thinner • Admiral Thinner Serbaguna; • Avia Thinner Lacquer Super; • Thinner 1633;
• Avian Thinner Enamel; • Aries Thinner Lacquer A; • Thinner 1634;
• Avian Thinner B Asli; • Aries Thinner Lacquer A Special; • Thinner 1601; and
• Avia Thinner Lacquer A; • Thinner 16213; • Thinner 1602.
• Avia Thinner Lacquer A Special; • Thinner 1660;
Cement Additive • No Drop Plaston; and • Giant Mortar L500.
Others • PRO-X 111; • Avitex Biocidal Wash; and • VIP Paint Remover.
• VIP Pengupas Cat Tembok;
Supporting Products • Basic Paint Roller; • Synthetic Brush; • Masking Tape;
• Green Brush; • Budget Paint Roller; • Seal Tape;
• Yellow Brush; • All Paints Paint Roller; • Drywall Tape;
• Plastic Scrapper; • Budget Roller Cover; • Fiberglass Tape;
• Mini Refill • Regular Roller Cover; • Roof Drain; and
• Mini Roller; • All Paints Roller Cover; • Kran Air Taman.
• Paint Tray; • Abrasive Paper;
• White Brush; • Abrasive Cloth Roll;
Further information on the Company’s products and services can be found in the Annual Report which is presented
independently with this Sustainability Report, the Company’s website, as well as various social media and other platforms of
the Company.
2023 Sustainability Report - PT Avia Avian Tbk 33
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New Products Launched in 2023
The Company consistently strives to conduct research and development on the products presented to customers. The research
and development are not only focused on improving the quality of the product itself but also on meeting customer needs
and adapting to market changes. The new products successfully launched by the Company throughout 2023 are described as
follows:
Admiral Thinner Serbaguna Admiral Anti Fouling
• Anti-Fog • Anti-Algae and Anti-Barnacles Formula
• Quick Drying • Maintains Maximum Boat Speed
• More Cost Effective • Helps Save Fuel
Brilliant Cat Tembok Interior Brilliant Cat Tembok Eksterior
• Conceals Wall Imperfections • UV Protection
• Resistant to Brushing or Rubbing • Anti-Mold and Anti-Mildew
• Minimal Splatter • Best Adhesion
Boyo Politur Melamin Avian Cling Zinc Chromate
• Anti-Mold and Insects • Prevents Rust
• Beautifies Wood Appearance • Quick Drying
• Water Repellent • Strong Adhesion
Admiral Wood Filler Epoxy Admiral Cat Kapal
• Best Adhesion • Seawater Resistant
• Flexible • Strong Adhesion
• Seals Cracks • Quick Drying
Aries Bling Avitex Wizz
• Not Easily Discolors • 2x thicker
• Quick Drying • Up to 40% Dilution
• Cost Efficient • 3-years Warranty
No Drop Plus 3 in 1 No Drop Basic
• Primer, Top Coat, and Waterproofing • 4-years Protection
• Waterproof • Waterproof
• 7+ Years Protection • Elastic
Avian Lem Epoxy Hemat Avian 3 in 1 Anti Karat
• Strong Adhesion • Protects against Rust
• Quick Drying • Practical
• No Pungent Odor • Suitable for Exterior and Interior
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Painting a Beautiful Picture of Indonesia
About the Company
Organizational Scale [POJK C.3]
Description Unit 2023 2022 2021
Total Manufacture Metric Tons 180,540 170,986 205,382
Total Manufacturing Facilities Manufacturing Plants 2 2 2
Total Assets Million Rupiah 11,166,987 10,792,122 10,873,760
Total Liabilities Million Rupiah 1,245,498 1,217,237 1,458,140
Total Equity Million Rupiah 9,921,489 9,574,885 9,415,620
Net Revenue Million Rupiah 7,016,882 6,694,171 6,779,643
Profit Before Income Tax
Million Rupiah 1,992,143 1,745,247 1,844,705
Expenses
Profit for the Year Million Rupiah 1,643,096 1,400,365 1,434,551
Total Employees
People 8,477** 8,076** 7,689*
(Including Outsourcing)
Total Environmentally Friendly Singapore Green Label Certified
29 24 16
Products Supplied Product Categories
Notes:
* AVIA and TKTW; and
** AVIA, TKTW, and TKBI.
2023 Sustainability Report - PT Avia Avian Tbk 35
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Operational Areas [GRI 2-1] [POJK C.3]
PRODUCT DISTRIBUTION AREAS
Wholly-owned Wholly-owned Independent Number of
Distribution Center Mini Distribution Center Distribution Center Retail Outlets Supplied
Sumatra: Sumatra: Sumatra: Sumatra:
26 5 10 10,894
Java: Java: Java: Java:
51 0 15 31,435
Kalimantan: Kalimantan: Kalimantan: Kalimantan:
14 2 4 5,215
Sulawesi: Sulawesi: Sulawesi: Sulawesi:
13 2 6 5,327
Other Areas in Other Areas in Other Areas in Other Areas in
Indonesia: Indonesia: Indonesia: Indonesia:
14 5 5 4,006
TOTAL: TOTAL: TOTAL: TOTAL:
118 14 40 56,877
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Painting a Beautiful Picture of Indonesia
About the Company
Group Structure and Subsidiaries
PT Avia Avian Tbk
50.00% 99.99% 99.99% 67.00%
PT Bangun Bersama PT Tirtakencana PT Solusi Rumah PT Multipro Paint
Solusindo Tatawarna Praktis Indonesia
99.98%
PT Tirtakencana
Batamindo
Operational Total Assets Before
Name Address Business Sector
Status Elimination
Direct Ownership
Jl. Raya Surabaya - Sidoarjo KM. 19,
Wholesale trade of paints,
PT Tirtakencana Desa Wadungasih, Kec. Buduran,
warehousing and storage, and Operating IDR3,830,103,145,307.-
Tatawarna Kab. Sidoarjo, Provinsi Jawa Timur,
self-owned or leased real estate.
Indonesia.
Avian Brands Building,
Jl. Ahmad Yani No. 317,
PT Solusi Rumah Retail trade of paints, varnishes,
Kel. Dukuh Menanggal, Operating IDR2,075,669,496.-
Praktis and Lacquers, as well as painting.
Kec. Gayungan, Kota Surabaya,
Jawa Timur, Indonesia.
Menara Satu Sentra Kelapa Gading
Paint and printing ink
7th Floor, Room 6,
industry, varnish industry
Jl. Boulevard Kelapa Gading LA 3
PT Multipro Paint (including mastics), wholesale
No. 1, Kel. Kelapa Gading Timur, Operating IDR31,834,298,639.-
Indonesia trade of paints, and wholesale
Kec. Kelapa Gading,
trade of various building
Jakarta Utara, DKI Jakarta,
materials.
Indonesia.
Indirect Ownership
Komplek Executive Industrial Park Wholesale trade of various
PT Tirtakencana
Blok D2 No. 8, building materials, wholesale
Batamindo (through
Kel. Belian, Kec. Batam Kota, trade of other construction Operating IDR34,982,411,405.-
PT Tirtakencana
Kota Batam, Kepulauan Riau, materials, and retail trade of
Tatawarna)
Indonesia. furniture
Joint-Venture
Wholesale trade of cement,
Menara Sentraya 21st Floor,
lime, sand, and stone as
Jl. Iskandarsyah Raya No. 1A,
PT Bangun Bersama construction materials, building
Kel. Melawai, Kec. Kebayoran Baru, Operating IDR43,061,798,385.-
Solusindo materials, as well as basic
Jakarta Selatan,
or industrial chemical materials
DKI Jakarta, Indonesia.
and goods.
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Significant Changes in the Company and
Supply Chain [GRI 2-6] [POJK C.6]
In 2023, no significant changes occurred in the Company related to closing or opening new branches, opening or closing new
business units, or business mergers or consolidations. Likewise, with the supply chain, no significant changes impacted the
Company in 2023.
Preventive Approaches or Principles
The Company adopts a preventive approach or principle through the risk management system that is structured based on the
precautionary principle in all of the Company’s operational activities. A full description of the Preventive Approach or Principle
is provided in the Risk Management section of the Sustainability Governance chapter of this report.
External Initiatives
In conducting its operational activities, the Company follows and supports several principles and initiatives developed by
other organizations, either in the form of certifications or standards for certain areas, which are recognized nationally
and internationally. In addition to the list of achievements above, the Company also participated in an external
international initiative by becoming one of the signatories of the Anti-Corruption Call to Action with more than 500
other companies worldwide. This initiative was developed at the UN Global Compact Leaders Summit in September
2023 in the United States. The Company’s involvement in this initiative can be seen on the UN Global Compact website,
https://unglobalcompact.org/take-action/action/anti-corruption-call-to-action.
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Painting a Beautiful Picture of Indonesia
About the Company
2023 Sustainability Report - PT Avia Avian Tbk 39
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Determination of Contents and Materials of Report “This Sustainability Report is prepared to provide information on the implementation of sustainability aspects within the scope of the Company’s business which consists of 4 pillars, namely Product Quality and Environment; Social, Labor, and Human Rights; Ethics and Governance; and Sustainable Procurement. Through this Report, we disclose the entire process of planning, implementation, monitoring, and evaluation related to sustainability aspects so that the reader can obtain comprehensive information on the Company’s sustainability performance and its contribution to the achievement of SDGs.” 40 PT Avia Avian Tbk - 2023 Sustainability Report
Page 43
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Stakeholder Engagement [GRI 2-29] [POJK E.4]
We define stakeholders as entities or individuals who are affected by the Company’s activities, products, and services. On the
other hand, the presence of the stakeholders also affects the Company in realizing the success of strategy implementation and
goal achievement. Therefore, we involve stakeholders in the process of developing a sustainability agenda by paying attention
to compliance with corporate social responsibility, concern for environmental issues, and taking into account the priority scale
in building communication with various strategic partners.
This stakeholder engagement process is part of the Company’s efforts to meet the needs of each stakeholder group by
using all of its own resources in an appropriate and responsible manner, as well as in a way that does not conflict with the
provisions stipulated in the laws and regulations. In identifying stakeholder groups, we are guided by the AA1000 Stakeholder
Engagement Standard (“SES”) 2015 which sets out several criteria, as described below:
1 Influence
The party influences the decisions made by the Company regarding business continuity.
2 Dependency
The Company has dependence on the party, either directly or indirectly.
3 Responsibility
The Company has responsibilities, either at the present or in the future, to the party.
Attention
4 The party requires attention from the Company regarding economic, social environmental,
or governance issues.
Perspective
5 The party may provide new, previously non-existent perspectives on important, relevant
issues.
Based on these aspects of consideration, we have determined the parties included in the stakeholder groups along with
the Company’s response to meeting the needs of each stakeholder group. The results of the identification are described
as follows:
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Painting a Beautiful Picture of Indonesia
Determination of Contents and Materials of Report
INTERNAL STAKEHOLDERS
Shareholders and Investors
Significant Topics and Stakeholders’ Needs
• Business development;
• Financial and operational performance; and
• Dividend payment.
Method of Engagement and Frequency of Implementation
• Convention of General Meeting of Shareholders annually or as needed;
• Submission of Annual Report and Sustainability Report on a yearly basis; and
• Provision of facilities for information access.
Basis for Selection
Responsibility; Response to Stakeholders’ Needs
Perspective; and • Strategizing to improve economic performance and business sustainability;
Influence. • Adjusting the implementation of sustainability principles in the Company;
• Stipulating policy on dividend payment; and
• Providing the latest information about the Company on various media, such as the Company’s and stock
exchange websites.
Employees
Significant Topics and Stakeholders’ Needs
• Fair and responsible management of labor practices;
• Occupational health and safety (“OHS”);
• Business continuity; and
• Competence and career development.
Method of Engagement and Frequency of Implementation
• Provision of employee complaint facilities;
Basis for Selection • Convention of meetings between management and employee representatives through the Bipatrit
Cooperation Agency as needed; and
Responsibility;
• Implementation of complaints surveys as needed.
Dependency;
Influence; and Response to Stakeholders’ Needs
Attention. • Preparing and complying with employment contracts and company regulations related to labor management;
• Providing adequate OHS facilities and/or infrastructures in all operational areas; and
• Organizing education and training activities as well as promotions.
EXTERNAL STAKEHOLDERS
Distributor
Significant Topics and Stakeholders’ Needs
• Fair and transparent procurement practices;
• Compliance with employment contracts;
• Productive and mutual business relationships; and
• Environmentally friendly supply chain strategies.
Method of Engagement and Frequency of Implementation
• Convention of meetings with suppliers as required;
• Periodic audits and assessments of vendors; and
Basis for Selection • Provision of complaint facilities for suppliers.
Responsibility; and Response to Stakeholders’ Needs
Dependency. • Preparing employment contracts that are favorable to both parties;
• Procuring goods and services in accordance with GCG principles;
• Complying with the obligations as stipulated in the employment contracts; and
• Ensuring vendors have implemented business practices that consider environmental impacts.
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EXTERNAL STAKEHOLDERS
General Public
Significant Topics and Stakeholders’ Needs
• Health and safety operations;
• The Company’s participation in helping to improve the welfare of the community; and
• Community development program.
Method of Engagement and Frequency of Implementation
Basis for Selection Provision of communication and complaint facilities for the surrounding community.
Responsibility; Response to Stakeholders’ Needs
Attention; and • Creating employment opportunities for local communities; and
Perspective. • Implementing CSR programs for the community through Avian Brands Peduli.
Government
Significant Topics and Stakeholders’ Needs
• Compliance with relevant applicable regulations;
• Payment of tax obligations and non-tax state revenues (penerimaan negara bukan pajak or “PNBP”); and
• Disclosure of violations.
Method of Engagement and Frequency of Implementation
• Submission of Annual Reports, Sustainability Reports, and other reports on a quarterly and annual basis;
• Payment and reporting of taxes and PNBP on monthly or annual basis; and
• Provision of violation reporting through whistleblowing system.
Basis for Selection
Responsibility; and
Response to Stakeholders’ Needs
Influence. • Ensuring compliance with all regulations applicable to the Company;
• Paying tax and PNBP obligations;
• Conducting certifications and assessments by external parties; and
• Disclosing incidents of violations that occur within the Company.
Store Customer
Significant Topics and Stakeholders’ Needs
• Product and service information;
• Marketing communications;
• Quality of products and services;
• Product labeling;
• Customer opinions and needs; and
• Improvement of customer satisfaction.
Method of Engagement and Frequency of Implementation
Basis for Selection • Implementation of customer satisfaction surveys as required; and
Responsibility; • Provision of complaint facilities for customers.
Dependency; and
Response to Stakeholders’ Needs
Attention.
• Updating product and service information;
• Registering the Company’s products with certification bodies; and
• Maintaining product and service quality, including customer health and safety aspects.
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Determination of Contents and Materials of Report
EXTERNAL STAKEHOLDERS
Product-using Customers
Significant Topics and Stakeholders’ Needs
• Product and service information;
• Marketing communications;
• Quality of products and services;
• Product labeling;
• Customer opinions and needs; and
• Improvement of customer satisfaction.
Method of Engagement and Frequency of Implementation
Basis for Selection • Implementation of customer satisfaction surveys as required; and
Responsibility; • Provision of complaint facilities for customers.
Dependency; and
Response to Stakeholders’ Needs
Attention.
• Updating product and service information;
• Registering the Company’s products with certification bodies; and
• Maintaining product and service quality, including customer health and safety aspects.
Material Topics of Sustainability Report
We prepare the Sustainability Report as a reporting medium to stakeholders on the Company’s sustainability performance
which consists of 4 pillars, namely Product Quality and Environment; Social, Labor, and Human Rights; Ethics and
Governance; and Sustainable Procurement. The issuance of this Sustainability Report is also an implementation of the
Company’s accountability and transparency on the impact of the Company’s operational activities on the surrounding
economic, environmental and social conditions. In addition, in the context of sustainable development, this Sustainability
Report is a medium that presents information about the Company’s contribution to supporting the achievement of
SDGs.
We have prepared this Sustainability Report with reference to the reporting principles as outlined in GRI 1: 2021 Baseline
below:
Accuracy
We report accurate and sufficiently detailed information to enable a comprehensive and relevant assessment of the
Company’s impact and contribution.
Balance
We report information in a neutral manner and provide a balanced picture of the Company’s impact and contribution.
Clarity
We present information in a way that is accessible and understandable.
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Comparability
We select, compile, and report information consistently to enable stakeholders to analyze changes and progress
made in managing the Company’s impacts and contributions over time and to analyze these impacts in relation to the
impacts of other organizations.
Completeness
We provide sufficient information to assess of the Company’s impact and contribution during the reporting period.
Sustainability Context
We report information on the Company’s contribution in the broader context of sustainable development.
Timeliness
We report information regularly and make it available in a timely manner for stakeholders to make informed decisions.
Verifiability
We collect, record, compile, and analyze information so that the information presented can be scrutinized to determine
its quality.
Identification and Determination of Priority Topics [GRI 3-1]
Based on analysis of our Sustainability Report in previous years, we feel the need to update our material topics. As a company
with a substantial product sales and production scope, we felt the need to conduct a more comprehensive materiality analysis.
We identified relevant topics based on the characteristics of the paint chemical industry and its impact on the stakeholders.
Unlike the previous method that only relied on the proxy method conducted by the relevant departments, we have now
conducted a broader engagement with all of our stakeholders. This is so that the materiality topics we determine are not only
factual to the conditions faced by the Company in 2023, but also relevant to parties with interest in our manufacturing process.
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Determination of Contents and Materials of Report
Our process in identifying and determining material topics for this Sustainability Report is described as follows:
Continuously Identifying and Determining Material Topics
Assessing Impacts [GRI 3-1] for Reporting [GRI 3-1]
Reviewing
Engaging various stakeholders material topics
and relevant experts. with stakeholders
and experts.
Identifying Prioritizing the
Understanding Assessing
actual and most significant Material
organizational significance
context
potential
of impacts
impacts for Topic
impacts reporting
Identifying the
Company’s actual Assessing the
Analyzing
and potential significance of
business
economic, identified impacts
activities and Setting thresholds
environmental, to prioritize
relationships, to determine which
social, and areas where the
the sustainability topics are material
governance Company is likely
context in and organizing
impacts, including to take action to
which these them from most to
impacts on human address impacts
occur, and an least significant.
rights, across all and determine
overview of
of the Company’s material topics for
stakeholders.
business activities reporting.
and relationships.
Identification and prioritization of topics discussed in this Sustainability Report were carried out by engaging the stakeholders,
both from internal and external parties of the Company, through surveys. We implemented this method by distributing
questionnaires available in 2 languages, namely Indonesian and English, for approximately 2 months, from October to
November 2023.
Based on the questionnaire results, we received an excellent response, with each stakeholder group providing their answers
and opinions on their priority sustainability topics. The process of formulating question topics in this questionnaire has
also considered issues deemed significant to the standards of the chemical manufacturing sector, particularly the paint
manufacturing industry. Our questionnaire also provides space for stakeholders to express their opinions beyond the questions
or topics mentioned with the aim that all stakeholders not only feel involved, but also always heard by the Company for mutual
progress and sustainability.
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The number of stakeholders who responded reached 505 people consisting of Shareholder/Investor groups, employees,
distributors, communities, governments, store customers, product-using customers, and others. The demographics of these
stakeholders are described below:
DEMOGRAPHICS OF STAKEHOLDERS INVOLVED IN MATERIAL TOPIC MAPPING
Demographics by
Gender Age Group
2.77% 6.73% 0.60%
28.91% 25.54% 29.11%
68.32% 38.02%
20-29 years old 30-39 years old 40-49 years old
Male Female Choose Not to Answer
50-59 years old More than 60 years old
List of Material Topics and Limitations [GRI 3-2]
The identification conducted through this stakeholder engagement process helps us to complement our concerns and views
on the environmental, social, and governance (“ESG”) impacts of our production processes, which in turn contributes to the
determination of the Company’s ESG strategy and goals. Thus, the material topics discussed in this Sustainability Report have
evolved compared to previous years through the addition of several topics. Information regarding the material topics of the
Company’s 2023 Sustainability Report is described below:
LIST OF MATERIAL TOPICS AND EXPLANATIONS
PRODUCT QUALITY AND ENVIRONMENT
Material Topic: Responsible Procurement of Raw Materials & Products
GRI-Standard Disclosures: Relation to SDGs:
GRI 301
Sub-Topic:
• Percentage of renewable materials;
• Percentage of recycled materials used;
• Percentage of product packaging recovered and reprocessed by the Company; and
• Sustainable products launched by the Company.
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Determination of Contents and Materials of Report
PRODUCT QUALITY AND ENVIRONMENT
Material Topic: Environmental Protection
GRI-Standard Disclosures: Relation to SDGs:
GRI 302 GRI 303 GRI 304 GRI 306
Sub-Topic:
• Environmental and ecological protection;
• Water management;
• Energy management and reduction practices;
• Waste management and reduction; and
• Material recycling.
Material Topic: Climate Change Actions
GRI-Standard Disclosures: Relation to SDGs:
GRI 305
Sub-Topic:
• Transition to clean and affordable energy;
• Greenhouse gas emission reduction target (Scope 1, 2, 3);
• Monitoring and evaluation of greenhouse gas emissions; and
• Carbon neutral and Net Zero Carbon commitments.
SOCIAL, LABOR, AND HUMAN RIGHTS
Material Topic: Public Impact and Relations
GRI-Standard Disclosures: Relation to SDGs:
GRI 202 GRI 413
Sub-Topic:
• Community development programs or welfare activities (CSR);
• Community engagement;
• Impact assessment; and
• Total employees recruited from local communities.
Material Topic: Talent/Skill Attraction and Retention
GRI-Standard Disclosures: Relation to SDGs:
GRI 401 GRI 404
Sub-Topic:
• Employee training and career development;
• Employee benefits; and
• Employee retention.
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SOCIAL, LABOR, AND HUMAN RIGHTS
Material Topic: Occupational Health, Safety, and Security
GRI-Standard Disclosures: Relation to SDGs:
GRI 403
Sub-Topic:
• OHS management system;
• Prevention of occupational accidents or disasters;
• Employee participation and training on OHS;
• Hazard identification;
• Incident assessment and investigation; and
• Promoting worker or employee health.
Material Topic: Human Rights
GRI-Standard Disclosures: Relation to SDGs:
GRI 202 GRI 405 GRI 406 GRI 408
GRI 409 GRI 411
Sub-Topic:
• Diversity of employee composition;
• Hiring people with disabilities;
• Female proportion;
• Decent and equal wages;
• Care and concern for employees;
• No discrimination;
• Elimination of child and forced labor;
• No sexual harassment; and
• Rights of local communities.
Material Topic: Labor Management/Relations
GRI-Standard Disclosures: Relation to SDGs:
GRI 402 GRI 407
Sub-Topic:
• Freedom of association;
• Mutual negotiation;
• Labor practice complaint mechanism; and
• Minimum notice of changes in the work environment.
Material Topic: Customer Relationship Management
GRI-Standard Disclosures: Relation to SDGs:
GRI 416 GRI 417 GRI 418
Sub-Topik:
• Product quality and safety;
• Customer opinions and needs;
• Product labelling;
• Marketing communications; and
• Improvement of customer satisfaction.
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Determination of Contents and Materials of Report
ETHICS AND GOVERNANCE
Material Topic: Corporate Governance and Operational Performance
GRI-Standard Disclosures: Relation to SDGs:
GRI 2
Sub-Topic:
• Corporate governance mechanisms;
• Governance structure and composition;
• Composition and selection of the Board of Commissioners and the Board of Directors;
• Diversity of the Board of Commissioners and the Board of Directors;
• Independence of the Board of Commissioners and the Board of Directors;
• Remuneration policy;
• The role of the highest governance organ in sustainability; and
• External guarantees.
Material Topic: Integrity Management and Compliance with Laws and Regulations
GRI-Standard Disclosures: Relation to SDGs:
GRI 205 GRI 207 GRI 415
Sub-Topic:
• Code of conduct;
• Healthy business competition;
• Anti-corruption;
• Taxation governance;
• Political contributions;
• Compliance with laws and regulations (economic, environmental, social); and
• Disclosure of violations.
Material Topic: Information Safety Management
GRI-Standard Disclosures: Relation to SDGs:
GRI 418 -
Sub-Topic:
• Information security policies and systems;
• Information breach risk control and measures; and
• Protection of data security of all company stakeholders.
SUSTAINABLE PROCUREMENT
Material Topic: Supply Chain Management
GRI-Standard Disclosures: Relation to SDGs:
GRI 308 GRI 414
Sub-Topic:
• Sustainable procurement and supply chain measures (policies, assessments, training, documentation, and reporting for suppliers); and
• Environmentally friendly supply chain strategies.
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Material Level
Furthermore, to determine the level of materiality of the Sustainability Report content, a mapping of material topics was
conducted based on a stakeholder survey. The mapping results show an overview of the materiality level of the Sustainability
Report content below:
Customer
Service
Occupational
Management
Health and
Safety
Integrity Environmental
Management Protection
and Compliance Information
with Laws and Security
HIGH
Regulations Management
IMPORTANT FOR STAKEHOLDERS
Responsible
Procurement
of Raw Skill/Talent
Materials and Human Attraction and
Products Rights Retention
Climate Change
Supply Chain Action
Management
MEDIUM
Community
Impact and
Relations
Corporate
Governance and Labor
Operational Management/
Performance Relations
LOW
LOW MEDIUM HIGH
IMPORTANT FOR THE COMPANY
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Sustainability Governance “We remain focused on creating shared value for the long term so implementing sustainability governance is an essential foundation for achieving this goal. In its implementation, our operational activities are not only guided by applicable laws and regulations, but also by emphasizing the fulfillment of obligations to stakeholders in economic, environmental, social, and governance aspects.” 54 PT Avia Avian Tbk - 2023 Sustainability Report
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OUR ACHIEVEMENTS [GRI 3-3]
We have enrolled The proportion of female We have conducted
our employees in competence representation on the Board of identification and
development programs Directors has reached found no cases of
on sustainability aspects, non-compliance with the laws
encompassing and/or voluntary regulations
Tema Pelatihan concerning products’
health and safety
39 themes impacts.
Total Jam Pelatihan
20.00% Zero
4,301.99 hours. since 2022. non-compliance.
Commitment to Sustainability
Governance
Implementing sustainability governance is a key foundation for our Company’s continuity and sustainability. For us,
sustainability governance is the underlying principle of company management processes and mechanisms based on
applicable laws and business ethics, while always caring for our stakeholders. We are optimistic that through our commitment
to consistently implementing sustainability governance, we will become stronger and continuously provide maximum benefits
to stakeholders. Moreover, potential risks that may negatively affect our business activities will be mitigated and their impact
minimized. Risk management related to economic, environmental, social, and governance aspects is conducted by referring to
sustainability principles that are adjusted to governmental regulations, as well as the 7 core subjects contained in ISO 26000
on Social Responsibility, as shown below:
Community Engagement and
Fulfillment of Human Rights
Development
7
Environmental Matters Core Subjects Product and Customer Issues
ISO 26000
Governance Organization Fair Operational Procedures
Employment, Health, and
Safety Practices
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Sustainability Governance
Structure of Sustainability Governance [GRI 2-9, 2-11]
We already have a sustainability governance structure in place, which consists of a General Meeting of Shareholders as the highest
organ in the governance structure, the Board of Commissioners with the responsibility for supervising and advising the Board
of Directors, and the Board of Directors which is responsible for managing the Company’s operational activities, including the
sustainability aspects. In performing its duties, the Board of Commissioners is assisted by Supporting Committees, while the
Board of Directors is assisted by Supporting Work Units. The implementation of such governance is also supported by the Good
Corporate Governance Guidelines, which are a set of rules guiding the process of good corporate management and supervision
such as division of duties, authorities, and responsibilities for each of the Company’s organs, based on the Good Corporate
Governance (“GCG”) principles. Information on the Company’s sustainability governance structure is further described as follows:
General Meeting of Shareholders
The Board of Commissioners The Board of Directors
The Nomination The Good The Related
The Audit and Corporate The Corporate The Internal Party
Committee Remuneration Governance Secretary Unit Audit Transaction
Committee Committee Committee
The duties and responsibilities of the Company’s sustainability governance structure are described as follows: [GRI 2-12, 2-14]
The Role of the Highest Governance Organ in Overseeing Impact Management [GRI 2-12]
The General Meeting of Shareholders (“GMS”) demonstrates its commitment to supporting sustainability programs by
approving, supervising, and evaluating the Company’s strategies and targets, aligned with Sustainable Development Goals,
the Company’s Vision and Mission, and materiality topics.
Governance Organ Description
The GMS is a governance organ that has the power not granted to the Board of Directors nor the Board
of Commissioners within the limits stipulated by the Limited Liability Company Law and/or the Articles of
GMS
Association, as well as a medium for Shareholders to make important decisions related to long-term business
continuity.
The Board of Commissioners has the duties and responsibilities to supervise and advise the Board of Directors
The Board of in managing the Company’s strategy, including implementing GCG principles. The Board of Commissioners
Commissioners is assisted by the Audit Committee, the Nomination and Remuneration Committee, and the Good Corporate
Governance Committee.
The Board of Directors has the duties and responsibilities to manage the Company’s business operations,
including managing economic, environmental, social, and governance risks with representative and
The Board of Directors managerial authority. The implementation of the duties of the Board of Directors is supported by the
Corporate Secretary, the Internal Audit Unit, the Related Party Transaction Committee, as well as management
in the Work Units performing direct operational activities. [GRI 2-11]
The Audit Committee has the duties and responsibilities to assist the Board of Commissioners in performing
supervisory functions, including monitoring and evaluating the implementation of the internal control
The Audit Committee system, assessing the implementation of activities and audit results carried out by internal and external
auditors, reviewing financial information to be issued by the Company, and monitoring compliance with
applicable laws and regulations.
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Governance Organ Description
The Nomination and Remuneration Committee has the duties and responsibilities to assist the Board of
The Nomination and
Commissioners in supervising the implementation of the nomination and remuneration process to ensure
Remuneration
that it is objective, effective, and efficient, as well as to improve the quality, competence, and responsibility
Committee
of the Board of Commissioners and the Board of Directors in achieving Vision and Mission of the Company.
The Good Corporate Governance Committee has the duties and responsibilities to socialize Business Ethics
The Good Corporate
and Code of Conduct and receive and follow up reports of any complaints of violations of Business Ethics and
Governance Committee
Code of Conduct committed by Company personnel.
The Corporate Secretary has the duties and responsibilities as the liaising party between the Company and
The Corporate
the stakeholders, especially Shareholders, capital market authorities, and the public, as well as ensuring the
Secretary
Company’s compliance with laws and regulations, especially in the capital market sector.
The Internal Audit Unit has the duties and responsibilities to conduct assurance activities and provide
professional, independent, and objective opinions to the Board of Directors on the Company’s business
The Internal Audit Unit activities. In addition, the Internal Audit Unit is expected to assist the Company in increasing value and
improving operations, through a systematic approach by evaluating and improving the effectiveness of risk
management, internal control, and GCG processes in the Company.
The Related Party Transaction Committee has the duties and responsibilities to support the implementation
of the duties of the Board of Directors, particularly in terms of managing the Company’s transactions
The Related Party with affiliated parties through the provision of input and advice concerning related party transactions
Transaction Committee conducted by the Company and its business groups, so that such related party transactions are conducted in
accordance with generally accepted business practices, applicable laws and regulations, and comply with fair
transaction principles.
COMPOSITION OF THE BOARD OF COMMISSIONERS AS OF DECEMBER 31, 2023 [GRI 2-9]
Name Appointment Gender Term of Office Skills
Hermanto Tanoko President Commissioner Male 2021 - 2026 Management
Mohammad Noor
Independent Commissioner Male 2021 - 2026 Economy
Rachman Soejoeti
COMPOSITION OF THE BOARD OF DIRECTORS AS OF DECEMBER 31, 2023 [GRI 2-9]
Name Appointment Gender Term of Office Skills
Wijono Tanoko President Director Male 2021 - 2026 Sales and Marketing
Ruslan Tanoko Vice President Director Male 2021 - 2026 Chemical Engineering
Robert Christian Tanoko Director Male 2021 - 2026 Business and Trading
Kurnia Hadi Sinanto Director Male 2021 - 2026 Accounting
Angelica Tanisia Jozar Director Female 2022 - 2026 Engineering
Diversity of the Board of Commissioners and the Board of Directors in 2023 [GRI 405-1]
Age Male Female Total
Diversity of the Board of Commissioners
>50 Years Old 2 - 2
30 - 50 Years Old - - -
<30 Years Old - - -
Total Members of the Board of Commissioners 2 - 2
Ratio of Members of the Board of Commissioners (%) 100.00 - 100.00
Diversity of the Board of Directors
>50 Years Old 2 - 2
30 - 50 Years Old 2 1 3
<30 Years Old - - -
Total Members of the Board of Directors 4 1 5
Ratio of Members of the Board of Directors (%) 80.00 20.00 100.00
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Sustainability Governance
Gradually, the Company ensures that the composition of the Board of Commissioners and the Board of Directors is not
dominated by one particular gender. The Company seeks to increase female representation through the appointment of
Mrs. Angelica Tanisia Jozar as Director, such that the proportion of female representation in the Board of Directors reached 20.00%
since 2022. This diversity is also believed to provide a new perspective in decision-making at the top management level.
Information related to the implementation of duties, authorities, and responsibilities of governance organs is further provided
in the Company’s 2023 Annual Report which was prepared independently from this Sustainability Report.
Nomination and Remuneration of the Board of Commissioners and the Board of Directors
[GRI 2-10, 2-19, 2-20]
Nomination of the Board of Commissioners and the Board of Directors is the authority of the Shareholders and is authorized
through the GMS. The policy regarding the nomination of the Board of Commissioners and the Board of Directors is based on
the Succession Policy in the Nomination Process for Members of the Board of Commissioners and the Board of Directors of the
Company which was stipulated on December 27, 2021. Likewise, the remuneration system for the Board of Commissioners and
the Board of Directors refers to the GMS resolution in which the authority may be delegated to the Board of Commissioners,
who takes into consideration the opinions and recommendations of the Nomination and Remuneration Committee. Disclosure
of more detailed information concerning nomination and remuneration, including the amount of remuneration, for members
of the Board of Commissioners and members of the Board of Directors is presented in the Company’s 2023 Annual Report,
prepared independently from this Sustainability Report.
Assessment of the Performance of the Board of Commissioners and the Board of Directors [GRI 2-18]
The policy regarding the assessment of the performance of the Board of Commissioners and the Board of Directors is
based on the Performance Assessment Policy of the Board of Commissioners and the Board of Directors of the Company
which was stipulated on December 27, 2021. Under this policy, each member of the Board of Commissioners can assess the
performance of the Board of Commissioners collegially rather than individually. Likewise, when assessing the performance of
the Board of Directors, each member of the Board of Commissioners can evaluate the performance of the Board of Directors
collegially rather than individually. Disclosure of more detailed information concerning the assessment of the performance
of the Board of Commissioners and the Board of Directors is presented in the Company’s 2023 Annual Report, which is
prepared independently from this Sustainability Report.
Manager of Social and Environmental Sustainability Aspect [GRI 2-12, 2-13] [POJK E.1]
Sustainability management that includes environmental and social aspects is part of the duties and responsibilities of the
relevant work units responsible to the Board of Directors. Currently, the Company has not established a dedicated sustainability
committee or team. However, the tasks are delegated to work units relevant to the sustainability topics.
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Competence Development related to
Sustainability [GRI 2-17] [POJK E.2]
The Company actively strives to improve the collective knowledge, skills, and experience of the Company’s personnel related
to sustainability principles through a series of competence development programs on sustainability organized by the
Company’s internal parties as well as professional and credible external parties. We believe that adequate knowledge and
skills concerning sustainability principles that are relevant to the operated business sector are fundamental in supporting the
achievement of sustainability targets that have been stipulated by the Company. Throughout 2023, competence development
programs related to sustainability aspects have been provided to 1,642 participants or 19.37% consisting of AVIA, TKTW, and
TKBI employees. The programs include 39 training themes with a total of 4,301.99 training hours. More information is shown
as follows:
Number of
No. Training Theme Participants Total Training Hours
(Person)
5R (Concise (Ringkas), Tidy (Rapi), Clean (Resik), Neat (Rawat), and Diligent
1. 332 345
(Rajin)
2. 8 Waste 441 874
3. Artificial Intelligence (“AI”) and Sustainability in Financial Professions 1 3
4. Energy Auditor Certification 1 32
5. Internal Auditor of Integrated Management System 20 450
6. Fire safety equipment (APAR) Awareness 52 129
7. ISO:14001 Awareness 24 60
8. ISO:45001 Awareness 50 100
9. ISO:50001 Awareness 62 148.50
10. Reachstruck Awareness 12 132
11. CSR Community Development 1 24
ESG Beyond Compliance: Best Practice for Advancing Sustainability in the
12. 1 4
Face of Global Complex Challenges
13. ILCAN Training Series on PROPER Life Cycle Assessment (“LCA”) 1 32
14. Fire Safety Certification - Level B 2 110
15. Fire Safety Certification - Level C 13 660
16. Fire Safety Certification - Level D 8 198
17. Biodiversity Competence 1 16
18. Fire Safety Management 1 3
19. Hazardous Waste Management 275 305
20. Unlocking Opportunities through Improved ESG Rating 2 4
21. Boiler Operator Certification 3 118
22. Forklift Operator Certification 2 48
Economic Empowerment and Community Capacity Building for PROPER
23. 1 22.50
Social Innovation
24. Certification for Person in Charge of Non-Hazardous Waste 1 24
Enforcement and Monitoring of Environmental Law and Implementation
25. of Quality Standards for Occupational Health and Safety as an Effort to 1 16
Protect and Preserve the Environment
Presentation on Good Corporate Governance & ASEAN Corporate
Governance Scorecard (“ACGS”) and Corporate Actions (Material Transactions
26. 1 7.58
and Changes in Business Activities & Affiliated Transactions and Conflict of
Interest Transactions)
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Sustainability Governance
Number of
No. Training Theme Participants Total Training Hours
(Person)
27. Presentation on Non-Taxes and Sustainability Reports 1 4.75
28. Refreshment on First Aid Kit 36 72
29. Safety and Handling of Petrochemical Product 25 112.50
30. GCG Socialization 83 83
31. General Safety Socialization 9 9
32. Sustainability Governance Socialization 49 49
33. Socialization of ACGS Criteria and Grading 2 4.66
34. Questionnaire Sustainability Socialization 93 46.50
35. Socialization of Doorlock and Emergency Response of Tidar Production Site 26 26
36. Sustainability in Action: Opportunities for a Better Tomorrow in Indonesia 3 9
37. Environmental Talkshow (Emission Technical Approval) 3 6
The Future of Sustainability Reporting an Exclusive Forum for Regulators
38. 1 2
and Listed Companies in Indonesia
The Value of Social Responsibility for Positive Impact on Development,
39. 2 12
Business, and Society Across Manufacturing
Total 1,642 4,301.99
In addition to employee training, the Company also conducts training on sustainability for partner companies as one of the
Company’s external stakeholders, both the suppliers and the distributors. Data on the training is presented in the following
table:
Number of
No. Training Theme Participants Total Training Hours
(Person)
Socialization of Sustainable Procurement Policy and Greenhouse Gas
1. 36 1.50
Emission Reporting Scope 3
Sustainability Risk Management [GRI 2-25] [POJK E.3]
The Company implements risk management as part of prevention, planned action, and sustainability principles. This is
implemented to reduce the impact of an event that could potentially harm or endanger the Company, including to minimize
potential risks related to sustainability. The Company’s risk management uses a risk management approach implemented
through identification, measurement, monitoring, and risk control. The Company also periodically and continuously
develops and improves the existing risk management system framework and strives to constantly improve an integrated
and comprehensive internal control system. The development of the Company’s risk management is conducted by building
the initial infrastructures, i.e., risk management policies, guidelines, and procedures which serve as guides in conducting risk
management for all risk owners, adapted to the risk appetite and tolerance of management.
The Company considers that implementing adequate risk management can provide early information about the potential
risks that affect the Company, as well as a basis or reference in determining mitigation measures to be identified in advance,
to reduce the risk’s impact. In addition, implementing risk management is also part of the Company’s efforts to protect and
create value, in order to improve performance, encourage innovations, and support the achievement of the Company’s targets.
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The purposes of implementing risk management are described as follows:
To protect the Company from significant levels of risks that may hinder the achievement
of the Company’s targets.
1
To provide a consistent risk management framework for risks present in business
processes and functions within the Company.
2
To encourage management to act proactively in reducing the risk of loss and to make
risk management a provenance of competitive advantage for the Company.
3
To encourage prudent actions in the face of risk, as an effort to maximize company
value in order to achieve stipulated targets.
4
To build an understanding of risk and the importance of risk management, such that it
may become a part of the Company’s culture.
5
Risk Types and Mitigation Measures
The risks faced by the Company and its mitigation measures are described below:
Risks related to Business and Industry
Indication Mitigation
• Increasing investment in product development and being
selective in promotional activities, advertising, and product
We face intense competition, and failure to compete effectively
distribution; and
could result in loss of market share and adversely affect our
• Setting competitive product pricing based on a combination of
operational results.
factors, including the Company’s ability to set its products apart
from those of competitors.
Indication Mitigation
• Ensuring that cooperation agreements with vendors are well
We may not be able to procure an adequate and continuous supply maintained;
of electricity, fuel, water, equipment, and spare parts or to procure • Ensuring the availability of alternative vendors; and
them at favorable prices. • Looking for alternative energy sources, such as the use of solar
panels, so that the electricity supply reserves are maintained.
Indication Mitigation
• Improving human resource quality;
In sustaining our business success, we are dependent on the • Paying attention to the recruitment process, development, and
presence of certain key personnel and the success in recruiting and career path; and
retaining other qualified personnel. • Collaborating with leading universities/academies to acquire
qualified talents.
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General Risks
Indication Mitigation
Implementing and improving the Environmental Management
System (ISO 14001) and Energy Management System (ISO 50001),
as well as monitoring the consistency of implementation in our
environment, for example the development of environmentally
Regulation of greenhouse gas emissions and climate change issues friendly products (green label), the use of renewable energy (solar
may negatively impact our operations and markets. panels), the use of electric forklifts to replace diesel, as well as
replacing solar energy for thermo and boilers with gas energy. In
addition, programs related to environmental concerns are always
aligned with ISO 26000, one of the guiding standards on social
responsibility.
Indication Mitigation
Labor activism, riots, and Labor Laws in Indonesia may have a Our constant efforts to comply with all regulations related to
materially adverse effect on our Company. employment to minimize the related risks.
Indication Mitigation
We provide a reliable infrastructure for managing all forms of data
The use of information technology and databases carries risks
security risks, and keeping up with technological developments
and threats related to data security, cybersecurity, and privacy
by implementing an Information Security Management System
protection.
(ISO 27001).
More detailed information on risk profile, risk measurement, and mitigation measures is presented in the Company’s 2023
Annual Report, prepared independently from this Sustainability Report.
Overview of Implementation Effectiveness of the Risk Management System [GRI 2-18]
The implementation of risk management involves the Board of Commissioners and the Board of Directors with support
from the supporting organs. The Board of Commissioners and the Board of Directors conduct regular discussions in order
to ensure and improve the effectiveness of risk management implementation in the future, including those related to social
and environmental issues. This is done by a profit/loss evaluation mechanism concerning the previously performed plans and
actions. These evaluation steps are then followed by corrections of the weaknesses in implementing the risk management.
Building a Sustainability Culture [POJK F.1]
We continue to encourage every personnel in our Company to perform their duties and responsibilities and to make business
decisions using a sustainability approach. Therefore, we build the foundations of sustainability through a commitment to
comply with the Code of Conduct as well as thorough and continuous implementation of GCG, which includes providing a
complaint facility against violations of the norms stipulated therein. The Company also periodically conducts socialization,
awareness, and training related to sustainability to all Company personnel and other external stakeholders to provide the
latest information and ensure involvement of all parties to achieve the Company’s sustainability targets, particularly on
ESG aspects.
Code of Conduct [GRI 2-23]
We have established minimum standards of conduct for all personnel of our Company, including members of the Board
of Commissioners and members of the Board of Directors, all employees of our Company and the Subsidiaries, and other
personnel directly working for and on behalf of our Company. The policies summarized in the Company’s Business Ethics and
Code of Conduct are part of our commitment to conducting ethical business practices and meeting the aspirations of our
stakeholders. The preparation and implementation of the Company’s Business Ethics and Code of Conduct are intended to
prevent conflicts of interest, violations of norms, including acts of corruption and gratuities, as well as other social problems
that create losses to our Company and other stakeholders.
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In order to achieve this goal, we conduct regular socializations so that the obliged parties can thoroughly understand and
comply. Such socializations are conducted through internal media and through the Company’s website which may be accessed
by internal and external parties of the Company. The Company’s Business Ethics and Code of Conduct regulate several aspects
of conduct described as follows:
Principles in the Code of Conduct
Business Ethics Standard Standard Code of Conduct
• Compliance with prevailing Laws and • Individual Commitment
Regulations • Communication and Information Delivery
• Company Ethics for Company Personnel • Maintaining the Confidentiality of Data,
• Company Ethics for Consumers Confidential Information, and Material
• Company Ethics for Shareholders Information of the Company
• Company Ethics for Competitors • Use of Company Technology
• Company Ethics for Mass Media • Cooperation between Company Personnel
• Company Ethics for Business Partners • Equality in Treatment and Provision of
• Responsibilities to the Government Opportunities
• Responsibilities to the Community and the • Compliance with Prevailing Laws and
Environment Regulations
• Responsibilities in Innovation • Giving and Receiving of Gratuitie
• Integrity of Financial Reporting
• Protection of Company Assets
• Budget Planning and Use
• Occupational Health and Safety and
Environment (OHSE)
• Conflicts of Interest
More detailed information regarding the Company’s Business Ethics and Code of Conduct can be accessed on the Company’s
website under Corporate Governance (https://en.avianbrands.com/investor/l2/kebijakan-tata-kelola/etika-usaha-dan-pedoman-
perilaku).
Anti-Corruption, Bribery, and Fraud Policy
We consider corruption to be an extraordinary crime that will have a significant negative impact on the positive image and
reputation of the Company. Therefore, we remain fully committed to improving and maintaining an anti-corruption culture in
order to prevent losses, both material and non-material. Policies regarding implementing anti-corruption in the Company’s
business environment are outlined in the Company’s Business Ethics and Code of Conduct. [GRI 3-3]
As part of our commitment to combat corruption, we have taken measures to mitigate corruption through the implementation
of work unit procedures and guidelines that must be followed by all Company personnel. In order to eliminate opportunities
for corruption, we have also mapped and assessed the risks in our business chain and operations with high potential for
corruption. In addition, we also continuously conduct training and socialization on anti-corruption to employees and all
governance organs to ensure that our operations are free from corruption, collusion, and nepotism. This commitment was
realized by signing an Integrity Pact and an induction program for new employees. All Company employees have received
socialization and signed the Integrity Pact. [GRI 205-1, 205-2]
Anti-Corruption Risk Overview
The Company has conducted an independent review on corruption and fraud risks that do not follow Good Corporate
Governance (“GCG”) principles within the Company. Based on the review of the Internal Audit Unit’s inspection activities, there
were minor risks of 0.79% out of 381 total inspection areas. The Internal Audit Unit and the management have rectified those
risks in accordance with the applicable procedures and regulations. [GRI 205-1]
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Sustainability Governance
Proven Corruption Incidents and Measures Taken [GRI 205-3]
Throughout 2023, there were 3 minor alleged corruption cases, including 1 case reported through the whistleblowing system and
2 cases identified by internal audit findings. All reports and findings have been followed up by verifying the facts and resolved
by the relevant team commensurate with the degree of violation and applicable regulations in the Company.
Company Ethics for Business Partners [GRI 2-23]
We expect our partners to comply with all applicable regulations and observe fair terms in establishing business relationships
with our Company. As a guide to the implementation of this commitment, we have established ethical standards concerning
partners, which contain the following points:
Selecting partners based on aspects of accountable credibility, competence, integrity, and bona fides. 1
Exploring existing business opportunities in an effort to drive the Company’s growth over time. 2
Fostering a climate of mutual trust, respect, and togetherness, and building honest and intensive
communication. 3
Conducting an initial risk analysis and for any agreement that is outlined in a written document by
the competent work unit. 4
Fulfilling rights and obligations based on agreements or covenants between parties. 5
The possibility to terminate, by our Company, business relationships with partners when our interests
are no longer being met or when the relationship is potentially harmful to the community or the 6
environment.
Not influencing each other, either directly or indirectly, which may result in unfair business competitions,
decrease in product quality, disruptions to product procurement and distribution process. 7
Preventing conflicts of interest of parties directly or indirectly involved in the procurement process. 8
Striving to support the government’s efforts in assisting micro, small, and medium enterprise partners. 9
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Company Ethics for Suppliers [GRI 2-23]
We are always committed to conducting procurement processes based on the principles of competition, transparency, fairness,
prudence, and accountability. In realizing this commitment, we have established Ethical Standards concerning Suppliers, which
contain the following points:
Supplier selection must be based on competence, integrity, performance, track record, and the
needs of our Company, while prioritizing the interest of our Company. 1
Respecting the rights and obligations of suppliers in accordance with the engagement agreement
as well as laws and regulations. 2
Conducting transparent, fair, prudent, and equal treatment during the procurement process until
the rights and obligations of the parties are fulfilled. 3
Periodically evaluate suppliers’ performance and take firm actions against those violating the
Company’s Business Ethics. 4
Reporting receipt of gratuities, both directly and indirectly, from suppliers. 5
In the event of conducting business activities/transactions with suppliers with substantial material
value for our Company, an initial risk analysis must be performed by competent work units. 6
Not engaging in extortion of suppliers, either directly or indirectly, or any other similar actions that
may defame the Company and/or potentially violate applicable regulations. 7
Anti-Competition Practices
The Company’s Business Ethics Policy and Code of Conduct state that the Company engages in healthy competition at all
times, relying on the excellence of the Company’s products, services, and resources. The Company always carries out its
business activities, including procuring goods and services in accordance with the principles of healthy competition, namely
in a transparent, fair, prudent, and accountable manner, and implements business competition policies in accordance
with applicable laws and regulations. Reports on issues related to anti-competition can also be submitted through
the whistleblowing system.
Whistleblowing System [GRI 2-16, 2-26]
The Company involves stakeholders in improving the quality of corporate management by providing a whistleblowing system
(“WBS”). The WBS serves as a platform for stakeholders to report any allegations of fraud or legal violations that occur and/or
are committed by the Company’s personnel. Through the WBS, we can obtain information and disclose events on matters that
may result in losses, including a decline in our Company’s image. In addition, the WBS can also provide input for us to have
a broader perspective and critical work process on weaknesses and deficiencies in internal control, so that we can plan the
necessary corrective actions.
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Sustainability Governance
Our WBS mechanism is described as follows:
Indication of
Violation Reporting
Incoming Preliminary
Investigation to the
Report Inspection
Management
No Indication of
Violation
Complainants
to be updated
on the result Corrections of
of case Weakness in Internal
Case Closed Control and
investigation
Indisciplinary Sanctions
Reports on violation complaints may be submitted to:
The Good Corporate Governance Committee
Avian Brands Building
Jl. Ahmad Yani No. 317 (62) 81138505000
Surabaya, 60234 www.avianbrands.com
Jawa Timur, Indonesia pengaduan@avianbrands.com
The WBS management is the responsibility of the Company’s Good Corporate Governance Committee. Through the Committee,
we continuously manage and follow up all forms of reporting in accordance with the prevailing laws and regulations while
maintaining independence and ensuring the confidentiality of the reporter’s identity. The Good Corporate Governance
Committee will collect data, documents, and other evidence relevant to incoming customer complaints. If the evidence is
deemed sufficient, the complaints will proceed to investigation and also be reported to the Board of Directors. However, if
the violation reports are not supported by strong evidence, they will not enter the investigation stage, the Good Corporate
Governance Committee will inform the complainant that the complaint cannot be processed further.
Throughout 2023, we received 5 complaint reports through WBS consisting of 1 fraud report, 2 major reports, 1 minor report,
and 1 no issue report. All of these reports have been followed up by the relevant teams and resolved in accordance with the
degree of violation and applicable regulations in the Company.
Conflicts of Interest Guidelines [GRI 2-11, 2-15]
As part of our commitment to creating good corporate governance, maintaining harmonious and aligned relationships with
all stakeholders, and increasing the value of our Company in a sustainable manner, we are always firm and fair in dealing
with conflicts of interest in our Company. Additionally, we ensure no relationships between the Board of Commissioners,
the Board of Directors, and Shareholders could lead to conflicts of interest. In this regard, we have implemented the Conflicts
of Interest Guidelines based on the prevailing laws and regulations, the GCG Guidelines, and the Business Ethics and Code
of Conduct, as well as the Corporate Culture applicable and implemented in our Company. Throughout 2023, there was
nothing to indicate any conflicts of interest in any decisions and policies made by our Company.
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More information on the Conflicts of Interest Guidelines can be accessed on the Company’s website under the Corporate
Governance section (https://en.avianbrands.com/investor/l2/kebijakan-tata-kelola/pedoman-benturan-kepentingan).
Communication Policy Guidelines
We have stipulated the Communication Policy Guidelines as a guide in communicating with the Shareholders, the Capital
Market Authority, and the capital market community. Through this policy we continue to strive to provide complete, accurate,
actual, non-misleading, and easily accessible information in accordance with the provisions of the legislation, as well as to
conduct fair treatment of Shareholders in relation to the exercise of their rights as our Shareholders.
More information on the Communication Policy Guidelines can be accessed on the Company’s website under Corporate
Governance section (https://en.avianbrands.com/investor/l2/kebijakan-tata-kelola/kebijakan-komunikasi).
Compliance with Prevailing Laws and
Regulations [GRI 2-27]
We require the Board of Commissioners, the Board of Directors, Company officers, employees, and related parties to act with
responsibility, integrity, trust, respect, and loyalty, and comply with applicable legal obligations. Our commitment is reflected
by the absence of fines and other significant legal sanctions during the reporting period, both from authorized institutions and
from the Financial Services Authority and the Indonesia Stock Exchange.
Non-Compliance Incidents Relating to Health and Safety Impacts of Products and Services [GRI 416-2]
Throughout 2023, the Company has conducted identification and found no non-compliance with the laws and/or voluntary
regulations concerning the health and safety impacts of products. Each of the Company’s products is equipped with a
Safety Data Sheet (“SDS”) and safety, health and environmental information in accordance with the Globally Harmonized
System (“GHS”).
Political Contributions [GRI 415-1]
We constantly prioritize business management with integrity, independence, and freedom from biased orientation towards
certain parties, particularly political parties. Direct or indirect contributions to political causes may potentially present
corruption risks, given that they can be used to exert inappropriate influence on the political process. We have a policy to
ensure the Company’s neutrality towards any political interests and groups. Thus, our Company is not involved, materially or
immaterially, in the interests of any political parties or politicians from any political parties. This commitment is outlined in the
Company’s Sustainability Policy. [GRI 3-3]
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Healthy Economic Growth “We continue to strive to develop our business fundamentals through various research and development programs for environmentally friendly paint products that provide added value to the needs of the community. This commitment is not only aimed at maintaining the Company’s business resilience, but also serves as a motivation to provide benefits to Shareholders and all other stakeholders.” 70 PT Avia Avian Tbk - 2023 Sustainability Report
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OUR ACHIEVEMENTS [GRI 3-3]
Local suppliers’
Our distribution
involvement in
process is supported
our operations 29 by 118 wholly-owned
amounts to
89.38 % of our products are 81.47% distribution centers,
219 companies of our employees
eco-friendly and have of our product 14 wholly-owned
or been certified with portfolio is mini-distribution
are local workers.
the Singapore water-based.
77.94% Green Label.
centers, and
40 independent
of the Company’s
distribution centers.
total suppliers.
Economic Performance Management
Strategy
Economic performance is the main key to ensuring the success of our sustainability programs. Accordingly, we must be flexible
and agile in adapting to existing changes, both in production and sales, to maintain our competitive advantage and business
resilience. Regarding production, we currently have 2 manufacturing facilities in Serang and Sidoarjo with a manufacturing
capacity of 286,416 metric tons of paint per year. As for sales, we have a widespread marketing and distribution network
throughout the Indonesian archipelago to facilitate easy reach for our customers. By the end of 2023, we had 118 wholly-owned
distribution centers, 14 wholly-owned mini distribution centers, 40 independent distribution centers, and had cooperated with
more than 56,800 building stores. The scope of the Company’s market is supported by the active developments transpiring in
Indonesia considering that our decorative paint products are needed for architectural applications, to make walls or building
structures smoother and look perfect as well as to provide aesthetics and protect from damage due to mold and mildew, so
that the properties owned are more comfortable to view and live in. More detailed information related to the business strategy
adopted by the Company in 2023 is described as follows: [GRI 3-3]
SUSTAINABLE PRODUCT MANAGEMENT STRATEGY
1 Improving quality, competitive, and environmentally friendly products with efficient production costs.
Improving service quality, ensuring timely product delivery, meeting customer demands, and providing added value
2
for customers.
3 Providing socialization of information related to the safety and security of product applications.
Effective implementation of the Company’s business strategy related to economic performance management is also periodically
evaluated based on tiered Key Performance Indicators (“KPIs”) that have been established for the Company’s management.
This ensures that the Company’s predetermined targets and objectives can be optimally achieved. [GRI 3-3]
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Supply Chain [GRI 2-6]
The Company is the largest paint and decorative coating company, vertically integrated from research and development,
manufacturing of some key raw materials, manufacturing of some packaging, manufacturing of paint products,
filling-packing-storing, to marketing and product distribution. Most raw materials and auxiliary materials, such as resins, pigments
and additives used to manufacture paint products are obtained from internal processes, with the rest procured from suppliers.
Therefore, good supply chain management is important for the sustainability of the Company’s business. In pursuit of this, we
always maintain good working relationships with suppliers by applying the principles of transparency and responsibility. We
continue to ensure that raw material supply is maintained at an optimal level to meet market demand and manufacturing targets.
The Company’s supply chain in paint manufacture is described as follows:
THE COMPANY’S SUPPLY CHAIN
Process Planning and Inventory Control
(“PPIC”) provides informations on of
raw material requirements.
Material purchase transactions process
Overseas suppliers receive purchase orders
based on PPIC requirements by taking
and make shipments to Jakarta Port or
into account quality standards and
Surabaya Port.
competitive prices.
Local suppliers of raw Local suppliers of packagings
Surabaya Port/
materials receive purchase receive purchase orders and
Jakarta Port.
orders and make shipments. makes shipments.
Receipts of materials from
Raw material and packaging the warehouse to be processed
warehouse. into intermediate products/
finished products.
Conducting inspections on
the compliance of materials
to quality standards.
The purchasing process starts from the Process Planning and Inventory Control (“PPIC”) followed by a centralized purchasing
process to ensure the quality and price conformity of materials from suppliers. Any material purchased and shipped must go
through the Incoming Quality Control process to ensure that the purchased goods meet the stipulated quality standards and
safety requirements and then be utilized in the manufacturing process. The required raw materials are procured by the Company
through suppliers from abroad (international suppliers) and suppliers from Indonesian regions (local suppliers).
The involvement of international suppliers in the procurement of raw materials amounted to 62 companies or 22.06% of our
total suppliers. One of the challenges of sourcing raw materials from international suppliers is the fluctuations in exchange rates
as well as shipping issues that could lead to untimely delivery. In managing these challenges, the Company constantly monitors
the movement of foreign currencies, especially the US Dollar, as well as oversees the process of shipping raw materials from the
country of origin. The Company is also constantly disciplined in making payments in foreign currencies to avoid the effects of
speculation. Additionally, we also conduct limited hedging (forward contracts).
By involving local suppliers to provide raw materials for manufacturing, the Company’s presence can positively impact local
communities’ economic and social growth. This is reflected in the involvement of local suppliers in the procurement of raw
materials, which amounted to 219 companies or 77.94% of our total suppliers. Information related to the Company’s supplier
engagement is described as follows: [GRI 203-2]
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Proportion of Procurement from Local Suppliers and Transaction [GRI 2-6]
Description Unit 2023** 2022** 2021*
Total Local Suppliers Number of Company 219 209 231
Total Suppliers Number of Company 281 275 307
Percentage of Procurement from Local Suppliers % 77.94 76.00 75.24
Notes:
* The Company and TKTW; and
** The Company, TKTW, and TKBI.
Sustainable Procurement Practices
In addition to considering product quality and supply chain management, the Company also selects suppliers by taking
into consideration the commitment of these suppliers to fair labor practices and in accordance with applicable laws and
regulations, such as prohibiting the employment of underaged individuals, providing employees’ rights in accordance with
applicable regulations, and no recruitment fee practices. Supplier audits have also incorporated aspects of environmental
management, particularly regarding the management and utilization of Hazardous Waste and material usage. To ensure that
this commitment is implemented properly, the Company periodically conducts random audits of suppliers with whom it has
established cooperation. [GRI 3-3, 408-1, 409-1, 414-1]
In line with our sustainability mission, the Company has conducted an assessment of 20% of key suppliers contributing to
80% of the total purchase value. Based on the assessment, we found that 27 local raw material suppliers implemented 62.43%
of the sustainability aspects, 16 imported raw material suppliers implemented 86.43% of the sustainability aspects, and 16
packaging material suppliers implemented 67.86% of the sustainability aspects. In addition, the Company also conducted
audits of Hazardous Waste service vendors and ensured that all vendors complied with and implemented the procedures
in accordance with the prevailing laws and regulations. In 2023, we also conducted audits of 3 labor suppliers. Based on the
audit results, no underage labor violations were found and all our labor suppliers have complied with the provisions of the
Indonesian Labor Law. [GRI 3-3, 308-1, 414-2]
As an effort to implement sustainable procurement practices in accordance with the Fourth Pillar of the Sustainability Policy,
the Company engages supplier companies through various approaches. In addition to engaging suppliers in stakeholder
surveys on sustainability materiality topics, the Company has also conducted socialization and training on scope 3 Greenhouse
Gas (“GHG”) emissions reporting.
Served Market [GRI 2-6]
Network Geographical Location where the Product/Service is Offered
Description
The geographical locations where the Company’s and Subsidiaries’ products/services are offered are spread
throughout the Indonesian territory. In the domestic market, we continue to be the market leader in decorative
paints with a market share of more than 20.00%.
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Network Served Sectors
Description
Sectors served by the Company and its Subsidiaries are mainly retail customers in the form of building material
stores, both conventional stores and Modern Trade Outlets, as well as a small portion of various building,
infrastructure and construction projects. We also serve business-to-business customers, such as banking
networks and retail store networks.
Network Types of Customers and Beneficiaries
Description
The types of customers and beneficiaries of the business sectors run by the Company and its Subsidiaries
are the general public, ranging from the lower, middle and upper classes. We also provide supplies for the
corporate segment spread across several regions.
Achievement of Operational and Financial
Performance Targets
Amidst the business challenges of the national paint industry, we strive to achieve economic performance growth to sustain
direct economic benefits to our Shareholders and other stakeholders. To realize this, we are focusing on building solid
business fundamentals, improving competitiveness and competitive advantages, adding product variants, expanding
distribution networks, and realizing more aggressive marketing programs. The management of operational and financial
performance is the collective responsibility of the Board of Directors such that its achievements will be evaluated jointly by
the Board of Directors and the Board of Commissioners. [GRI 3-3]
In 2023, the Company successfully realized paint manufacturing of 180,540 metric tons or 99.61% of the target. Of this
amount, the Company successfully recorded a net revenue of IDR7,016.88 billion or 98.89% of the target and a net profit of
IDR1,643.10 billion or 102.03% of the target. Further information on the comparison of targets and realizations over the last
3 years is described as follows:
Achievement of Operational and Financial Performance Targets [POJK F.2]
2023 2022 2021
Description Achievement Achievement Achievement
Realization Target Realization Target Realization Target
(%) (%) (%)
Manufacturing (Metric Tons) 180,540 181,245 99.61 170,986 230,025 74.33 205,382 202,268 101.54
Net Revenue (Million Rupiah) 7,016,882 7,095,8211) 98.89 6,694,171 7,593,202 88.16 6,779,643 6,877,500 98.58
Net Profit (Million Rupiah) 1,643,096 1,610,420 102.03 1,400,365 1,651,521 84.79 1,434,551 1,409,885 101.75
1)
In the third quarter of 2023, the Company announced an adjustment to its 2023 net revenue target to ± 6.00%.
Comparison of Portfolio Targets and Performance, Financing Targets, or Investments in
Financial Instruments or Projects that are Aligned with Sustainable Finance [POJK F.3]
As of the end of 2023, the Company does not have or conduct investment programs in financial instruments or sustainable
projects, thus there is no information on the comparison of portfolio targets and performance, financing targets, or investments
in financial instruments or projects that are aligned with sustainable finance.
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Distribution of Economic Performance
The Company’s operational and financial performance achievement is a significant factor in the distribution of economic value
provided to stakeholders, whether in the form of employee salary payments, tax and non-tax remittances to the government,
dividends to Shareholders, purchases to suppliers, as well as the realization of funds for social and environmental responsibility
programs. Information regarding the Company’s economic distribution value over the last 3 years is described as follows:
TABLE OF ECONOMIC VALUE DISTRIBUTION IN 2021 - 2023 [GRI 201-1]
(in million Rupiah, unless stated otherwise)
Description 2023 2022 2021
Direct Economic Value Generated
Cash Received from Customers 6,850,984 6,781,888 6,617,183
Other Receipts 12,664 11,601 16,620
Receipts from Interest Income 308,589 302,422 26,728
Proceeds from Disposal of Fixed Assets 14,094 16,398 11,649
Total Direct Economic Value Generated 7,186,331 7,112,309 6,672,180
Distributed Economic Value
Payments to Suppliers 4,397,297 4,598,330 4,371,356
Payments to Employees 707,405 659,079 590,549
Payment for Corporate Income Tax 482,000 377,003 426,627
Dividend Payment to Shareholders 1,362,978 1,115,164 2,350,001
Acquisition of Right-of-Use Assets 14,289 66,285 42,335
Payment of Lease Liabilities 58,836 25,374 35,575
Payment of Interest Expense 4,077 6,463 37,102
Expenses for the Community 2,881 1,978 1,923
Environmental Expenses 1,059 1,524 1,257
OHS Investment Expenses 886 841 4,399
Total Distributed Economic Value 7,031,708 6,852,041 7,861,124
Retained Economic Value 154,623 260,268 (1,188,944)
Financial Implications and Other Risks and Opportunities Caused by Climate Change [GRI 201-2]
Climate change and global warming are global issues that demand collective attention from the global community. Without
a commitment to act and address these issues collectively, the negative impacts of global warming and climate change will
continue to intensify for the Earth and all living beings on it. The current impacts include extreme weather conditions, higher
temperatures, and heavier rainfall in increasingly unpredictable timing. Conversely, the dry season lasts longer than usual,
causing droughts and other problems. It is undeniable that climate change not only causes environmental disasters but also
has a negative impact on human life and other living beings, including the development of the business world.
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Despite its relatively small significance, climate change risk may negatively impact the Company’s operational activities,
particularly related to the product distribution process. The unpredictability of weather conditions due to climate change
could potentially delay the Company’s products reaching distribution networks on outer islands. Consequently, we remain
attentive and vigilant to prevent the impacts of climate change from affecting the Company’s operations. As part of our
commitment to mitigate climate change, we have also conducted emission reduction programs that can be found in the
Responsible Environmental Management section of this Sustainability Report.
Financial Assistance Received from the Government [GRI 201-4]
Throughout 2023, no financial assistance was received by the Company in any form any government for any operations. In
addition, there was no government involvement in any form in the Company’s shareholding structure.
Contribution to the Government [GRI 207-1]
Taxes serve as the main source of income for the state’s finances, generated by collecting monies from each taxpayer into the
state treasury. The state utilizes taxes for various purposes, including infrastructure, education, health, economy, and so on.
From taxes, taxpayers enjoy the benefits of infrastructure development, subsidies, or services from various public facilities.
We understand that taxes are essential instruments in achieving the Sustainable Development Goals, and the Company is
committed to assisting governments, both at the national and local levels, through tax contributions to be utilized for the
achievement of the Sustainable Development Goals. [GRI 3-3]
In order to make an optimal contribution to the government, we are committed to carrying out tax payment obligations in
accordance with applicable tax regulations in Indonesia. In this regard, the Company already has a Taxation Unit under the
Finance Director that ensures the Company complies with tax payments in line with its operational activities. The Company
engages a tax consultant as a discussion partner to ensure that it remains informed of existing regulations and applies the
regulations properly. The Company also verifies tax compliance through an audit process conducted by internal and external
auditors. In the event of a violation or unethical conduct related to taxation, the Company has a violation reporting mechanism
in place. [GRI 207-2]
Tax-related Stakeholder Engagement [GRI 207-3]
The Company continuously consults and/or discusses with tax authorities in order to receive input, validate understanding,
and ensure that the Company’s tax practices are in accordance with the prevailing laws and regulations.
Tax Reporting [GRI 207-4]
In relation to tax reporting, the Company only operates in Indonesia and has no overseas branches or operational offices.
Therefore, tax reporting is only done for Indonesia. The taxes paid by the Company for the last 3 years are described as follows:
(in million Rupiah, unless stated otherwise)
Description 2023 2022 2021
Income Tax 696,167 548,133 843,043
Land and Building Tax 2,015 1,935 1,842
Value Added Tax 382,045 323,882 272,794
Total Tax Payments 1,080,227 873,950 1,117,679
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Indirect Economic Contribution
In addition to making direct economic contributions through the distributed economic value, we are also fully committed
to providing indirect economic benefits to our stakeholders. Indirect economic contributions are made by involving various
parties, especially the surrounding community, in operational activities through the empowerment of local labor and local
suppliers. The Company provides employment opportunities to the communities around its operational areas and engages
local suppliers that meet predetermined specifications and requirements. This is intended so that the Company’s presence can
assist the government in encouraging equitable distribution of the people’s economy. [GRI 3-3]
Local Labor Empowerment in the Company’s Business [GRI 203-2, 413-1] [POJK F.23]
Local communities are one of the Company’s stakeholders and an integral part of the Company as a social entity.
Their presence also positively impacts the sustainability of the Company’s business. Through the development of the
surrounding communities, the Company can help them build a prosperous and sustainable future.
We are committed to continually supporting the social and economic growth of the surrounding community by providing
employment opportunities to local communities, while considering the terms and criteria for hiring employees. Information
regarding the involvement of local labor in our operational activities is described as follows:
PROPORTION OF LOCAL LABOR INVOLVEMENT
Description Unit 2023** 2022** 2021*
Total Local Employees*** Orang 7,577 7,231 6,739
Total Employees Orang 8,477 8,076 7,724
Percentage of Local Employees*** % 89.38 89.54 87.25
Notes:
* The Company and TKTW;
** The Company, TKTW, and TKBI; and
*** Data for 2021 and 2022 are restated.
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Sustainable Product Responsibility
The Company is highly committed to providing safe, high-quality and environmentally friendly products and services. In
realizing this commitment, we constantly ensure that the quality of manufactured products is in line with the national
and international standards and certifications that the Company holds. We continue to prioritize these efforts in order to
strengthen competitiveness and expand the Company’s market share. [GRI 3-3]
Commitment to Providing Equal Products and Services [POJK F.17]
The products and services we provide are equal, in accordance with applicable mechanisms and procedures. Every level of
society may enjoy the products and services we provide with economical price offerings and premium products. To ensure
product quality, we hold several certifications based on international standards, namely the Green Label Certificate from
Singapore Green Label, as well as national standards, i.e., the Indonesian National Standard (Standar Nasional Indonesia or
“SNI”).
Health and Safety of Products and Services [GRI 416-1] [POJK F.27]
The Company prioritizes the fulfillment of responsibility for quality and safety in the operational process and the use of the
manufactured products. We implement product stewardship as a form of responsibility and to create better business value.
In an effort to ensure customer safety and enhance product value, we are gradually transforming our paint products to be
more environmentally friendly. 81.47% of our product portfolio is water-based, which was calculated from all paint products
based on volume, excluding instant cement (mortar). In addition, 50.70% of the total raw materials used were sourced
from renewable materials.
We also implement an integrated system in every stage of manufacturing allowing us to ensure the supply/availability of
raw materials and packaging, margin/cost optimization, and quality of the manufactured products. Product safety control
begins with product development by the Research, Development & Innovation (“RDI”) Laboratory to determine product
characteristics, raw materials selection, and selection of appropriate manufacturing processes. In this process, the purchasing
department first examines the profile of material suppliers to ensure their ability to provide quality products and services, this
includes the suppliers’ manufacturing locations in order to gain an understanding of their energy management systems as well
as transportation to consider material prices and shipping costs. In any purchase of raw materials and packaging materials, the
quality of the material received will be corroborated with the requirements, including by requiring Safety Data Sheet (“SDS”),
Certificate of Analysis (“CoA”), and Technical Data Sheet (“TDS”) for every type of material. In addition, we review the material
specifications (to ascertain its environmental-friendliness).
As of the end of 2023, 29 of the Company’s paint products are certified with the Singapore Green Label, which reflects our form
of responsibility for products that are low in Volatile Organic Compound (“VOC”) and free of heavy metals. In line with this, we
adopt the Global Harmonized System (“GHS”) for the classification and labeling of chemicals on all of our products. The GHS
was implemented as a system to provide a standardized approach for hazard classification, labeling, and safety signage for
employees and consumers.
Additionally, we evaluate the products that have been manufactured in order to ensure their safety. In 2023, the evaluation was
conducted on 29 products or 20.87% of the total products manufactured by AVIA.
Our commitment to prioritizing customer health and safety positively impacts the sustainability of the Company’s business.
Nationally, in addition to the Company being recognized as the number one domestic paint manufacturer in Indonesia, we are
also the first paint company to meet the Indonesian National Standard (Standar Nasional Indonesia or “SNI”) certification on the
quality management system. With these breakthroughs, the Company also provides consumers with more diverse choices of
high-quality paint products that comply with government standards. By the end of 2023, 7 of our products are SNI-certified,
i.e. Sunguard, Aquamatt, Aries Gold, Avitex, Everglo, Supersilk, and No Odor.
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To reduce our exposure to heavy metals, we gradually reduce the use of such materials in our products. All water-based
products we manufacture are free of heavy metals and in 2023 we added 5 more solvent-based products free of heavy metals,
i.e. Boyo Politur Melamine, Boyo Politur Vernis, Belmas Papantulis Hitam, Wood Eco Politur P01, and Wood Eco Politur P03.
Impact of Products and Services [POJK F.28]
As a manufacturer of chemical products, we recognize that our products may produce some possible health side effects
during application or during the period when one is indoors. Therefore, we continue to fulfill the need for safe and quality
products with added value to the preservation of nature, as well as the health of our customers. Through the RDI Division,
in addition to maintaining quality and innovating products, we also pay attention to and minimize the impact of the
products and services produced. We constantly emphasize this effort to ensure that each of our operational activities
complies with the applicable standard procedures or regulations.
In paint manufacturing, the transition from batch to batch requires washing tanks and mixers, so as much as 100 liter
of water may be wasted. The Manufacturing Department, in collaboration with the RDI Division, ensures that the water
can be reused for the manufacturing processes of certain products without compromising the quality of the products.
In addition, we, together with the vendor, are also developing software to accelerate coloring processes even with such
reused water. Furthermore, we also utilize slow-moving materials and strive to reduce the weight of packaging or boxes in
order to minimize waste for customers using our products.
Labeling and Information of Products and Services
We highly value our customer’s right to receive accurate and clear information about the products they intend to buy. The
information may include specifications, product advantages, application techniques, and waste disposal. To ensure the
fulfillment of this right, we provide clear, complete, and easily understandable information on all of the Company’s product
packaging. This is intended so that customers can use the product correctly and safely to avoid negative impacts on the
customers and the environment. Product labeling is also intended to ensure that our products reach the right market segments.
[GRI 3-3]
In addition to product packaging, customers can also obtain comprehensive information about our products through the
following social media platforms:
www.avianbrands.com
Instagram Youtube Facebook TikTok LinkedIn
@avianbrands Avian Brands Avian Brands avian.brands Avian Brands
The inclusion of product information, often referred to as labeling, is implemented by the Company in accordance with
Government Regulation of the Republic of Indonesia No. 29 of 2021 on the Organization of the Trade Sector and Minister of
Trade Regulation of the Republic of Indonesia No. 25 of 2021 on the Stipulation of Goods Required to Use or Provide Labels in
Indonesian Language. [GRI 417-1]
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In line with the commitment to provide clear product information, the Company also implements fair and responsible marketing
practices to customers by conveying information in a clear, correct, and truthful manner. We will not conduct promotion and
marketing by exaggerating or covering up flaws to take advantage of customers’ unawareness. The Company’s promotion and
marketing methods are categorized into 2 approaches, i.e. marketing with loyalty programs (below-the-line marketing or “BTL”)
and marketing in the media advertising (above-the-line marketing or “ATL”) which focuses on the use of mass media to reach
a wide target audience. Moreover, we also involve several public figures as Brand Ambassadors of the Company’s products.
The Company’s consistent efforts in delivering product information, marketing, and promotion have yielded positive results
in the absence of reports and complaints on incidents of non-compliance related to product information and marketing
communications, including promotional and sponsorship activities conducted by the Company during the reporting year.
[GRI 417-2, 417-3]
Product Innovation and Development [POJK F.26]
We are committed to continuously innovating in order to respond to social and environmental challenges by producing
in-demand quality products. These commitments are supported by the RDI Division which continues to optimize the Company’s
formula to improve product performance and quality with more effective and efficient manufacturing processes, especially in
using materials and packaging. With its competencies and abilities, the Company’s RDI Division is able to produce dozens
of new innovative products every year. In 2023, the RDI Division has successfully developed 43 new products, consisting of
9 resins, 23 finished products, and 11 packaging.
The Company’s product development is also aimed at transitioning from petrochemical-based products to water-based
and bio-based paint product variants as well as biomass balance products that are more environmentally friendly.
Water-based paint technology can reduce the use of Volatile Organic Compound (“VOC”) materials so that they do not cause
health problems to humans, especially when applied indoors.
Some products we successfully developed based on sustainability concepts and launched in 2023 are described as follows:
Brilliant Interior
Acrylic-based interior wall paint can beautify the walls of the house with a range of Indonesia’s favorite
colors. This product uses mercury-free and lead-free materials so that it does not have a negative impact
on the environment.
Brilliant Eksterior
Exterior wall paint provides maximum and total protection to the exterior walls of the house against
mold, mildew, and stains. This product uses mercury-free and lead-free materials so that it does not have
a negative impact on the environment.
Avitex Alkali Resisting Primer
High-quality primers that contain acrylic emulsion which is resistant to alkaline salts and efflorescence,
as well as improve the paint’s adhesion to the wall. This product is water-based so that it does not have
a negative impact on the environment.
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No Drop Basic
Waterproof coating with waterproof technology to protect exterior and interior walls from mold and
mildew. This product is also resistant to alkaline salts and efflorescence.
Avitex Wizz
The economical product that addresses the market needs for high dilution without affecting sealing
power. This product can be diluted up to 40% compared to other class products that can only be diluted
up to 20%.
Green Label Certificate
One manifestation of the Company’s commitment to producing environmentally friendly products is by registering its products
with the Green Label Certificate from Singapore Green Label. We have also considered that, gradually, our entire product
portfolio will comply with Low VOC, APEO Free, and Heavy Metal Free standards in the future. The Green Label certification
process is performed strictly, not only based on environmentally friendly requirements for end users, but also based on product
life cycle analysis. Environmentally friendly characteristics are determined starting from the selection of raw materials, the
manufacturing process, to labeling. As of the end of 2023, 29 of the Company’s products have complied with the Singapore
Green Label certification, which also adds to the list of certified environmentally friendly products owned by the Company.
Revenue from Sustainable Products
The Company’s commitment to continuously innovate towards environmentally friendly products has contributed positively
to revenue generation. In 2023, the proportion of revenue generated from products with a Green Label Certificate accounted
for 11.43% of total paint sales in the architectural solutions operation segment. This represents an increase compared to the
previous year, which accounted for 5.98% of total paint sales in the architectural solutions operation segment.
Sustainable Production Process
In addition to developing environmentally friendly products, the Company also continues to develop responsible and
sustainable production patterns. Therefore, we also continuously look for ways to improve production processes that can lower
energy usage levels. For instance, we have successfully reduced the production cycle time by approximately 20% in the resin
plant from 12 hours to 8 - 10 hours. In addition, we also managed to increase the capacity of the packing process from 40 cpm
to 90 cpm and the cartooning process from 114 sheets/manhours to 305 sheets/manhours.
In terms of energy saving, we divided the compressors through a zoning and looping system, reducing the energy consumption
ratio from 33.11 kWh/ton to 23.67 kWh/ton. In addition, we also carry out regular grinding machine maintenance so that the
grinding process becomes more efficient and increases productivity, which varies in each paste with an average increase of
25.00% - 100.00%.
Additionally, we have switched to lighter and stronger packaging materials and reduced the use of cardboard and plastic
packaging to minimize the cost and amount of waste generated. Through this program, we were able to reduce packaging
waste by 205.81 tons which saved us IDR1.3 billion in costs.
Flagship Product in Sustainability
No Drop Anti Panas
No Drop Anti Panas is a powerful waterproofing paint that is able to lower room temperature by up
to 7° Celsius, thanks to its UV Shield technology. Its waterproof feature prevents damp walls, is elastic,
anti-mold and mildew, prevents rust, and protects the surface for up to 10 years. With its ability to lower
room temperature, No Drop Anti Panas has been the Company’s flagship product in sustainability since
2022, as it contributes to reducing energy consumption from air conditioning use. This product is also
environmentally friendly as it holds Singapore Green Label certification.
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Healthy Economic Growth
Number of Recalled Products [POJK F.29]
In 2023, all of the Company’s products were well absorbed in the market and there were no product recalls related to products’
nonconformities or other reasons.
Customer Satisfaction [POJK F.30]
We conduct customer satisfaction surveys every 6 months to understand customer preferences and ensure customer
satisfaction with the products and services provided. The responses collected from the customer satisfaction survey will then
be taken into consideration for us to improve the quality of products and services in the future. [GRI 3-3]
In the customer satisfaction survey conducted in semester 1 of 2023, the Company received a score of 3.31 on a scale of 4.00,
which means that the Company’s performance was in the good category. Meanwhile, the customer satisfaction survey in
the second semester of 2023 showed an indicator of improvement with a score of 3.40 on a scale of 4.00, which means
that the Company’s performance was in a good category. The survey results indicate that customers are satisfied with the
products and services provided by the Company. The positive scores we received motivate us to remain committed to
maintaining and improving customer satisfaction by developing the best products and services accompanied by continuous
improvement efforts.
Information Safety
As with other business processes, customer trust is a constant concern for the Company. Accordingly, we continue to work
towards increasing customer confidence in using the Company’s products and services over the years. One of the strategic
policies we have implemented is to maintain and protect the confidentiality of customer data and information, ensuring it does
not become accessible to the public and is not lost. In addition, the data and information management that we implement has
also been certified with ISO/IEC 27001: 2013 concerning Information Security Management Systems. [GRI 3-3]
Our commitment to maintaining the security of stakeholder information is implemented by ensuring the anonymity of the
respondents. In addition, whenever the Company requires data from external stakeholders, the Company guarantees the
confidentiality of data from such stakeholders.
The Company’s commitment to safeguarding customer data and information has resulted in the absence of complaints
regarding privacy violations, leakage, theft, or loss of customer data and information. Furthermore, the Company has
not received any complaints from regulators or other external parties regarding breaches of customer-related data and
information. [GRI 418-1]
Complaints of Customer Issues [GRI 2-25]
We provide a facility for the customers to submit complaints concerning the products and services they receive through
the Company’s website www.avianbrands.com under the Customer Care menu Complaints submitted can be in the form
of complaints about delivery or quality of products and packaging All complaints received will be managed and followed
up by the Quality Assurance Department. On the Company’s website, a space is provided for 2-way discussions through
written and photo media.
During the last 3 years, we have not received any material and significant complaints from customers regarding the products
and/or services provided. [GRI 2-16]
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Responsible Environmental Management “The Company is highly committed and consistent in implementing responsible environmental approaches in all of its operational activities, in supporting the sustainability of the surrounding environment and future livelihood.” 84 PT Avia Avian Tbk - 2023 Sustainability Report
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OUR ACHIEVEMENT [GRI 3-3]
Scope 1 and 2 Effluent discharge
greenhouse gas from the Water 5,000 trees were
The ratio of Renewable energy emissions produced Treatment Plant and planted by
renewable material usage in 2023 reached in 2023 reached Sewage Treatment the Company
usage in the in 2023, the same
2023 manufacturing 1,814.71 GJ, 11,317.42 Plant processes
in 2023 reached number as the
process increased to TonCO2e, previous year.
an increase of
a decrease of 3.83 megaliters,
50.70 %
100.12%
To date, the Company
compared to 0.79 % a decrease of has planted
compared to compared to 7.49 % 10,000 trees with a
45.23 %
906.82 GJ total carbon
in the previous year. 11,408.00 compared to
sequestration of
in the previous year. TonCO2e 4.14 megaliters 765,100 kgCO2e.
in the previous year. in the previous year.
1 2 3 4 5
Environmental Impact Management
Strategy
Environmental degradation is one of the most significant issues facing the global community, including Indonesia. It has
become an increasingly prominent topic of discussion, particularly with the growing frequency of hydrometeorological
disasters, those caused by meteorological parameters such as rainfall, humidity, temperature, and wind. Types of disasters
in this category include droughts, floods, storms, wildfires, el nino, la nina, landslides, and several other disasters. Some
experts suggest that hydrometeorological disasters are driven by climate change, triggered by various human activities
such as extensive exploitation of natural resources, deforestation, intensification of industrialization which leads to increased
Greenhouse Gas (“GHG”) emissions, and so on. [GRI 3-3]
Reflecting on the resulting impacts, all stakeholders’ commitment to preserving environmental sustainability becomes crucial.
As a business entity, we are committed to reducing the environmental impacts of our operations, and responding to climate
change by protecting vital ecosystems that support life on earth for long-term survival and business viability. We always pay
attention to environmental protection and sustainability in any operational activity in accordance with applicable laws and
regulations. We also create innovations and developments in providing various environmentally friendly products. [GRI 3-3]
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Responsible Environmental Management
Environmental Management
The Company’s manufacturing activities and product distribution processes have both direct and indirect impacts on the
surrounding environment. Such environmental impacts result from the use and management of natural resources that produce
environmental emissions. Therefore, we continue to make resource efficiency efforts while gradually starting to use renewable
energy sources as alternatives. Environmental impact management is the responsibility of the Environmental Management
Committee. More detailed information about the Company’s environmental impact management structure is described
as follows:
ORGANIZATIONAL STRUCTURE OF THE ENVIRONMENTAL MANAGEMENT COMMITTEE
COMMITTEE CHAIRMAN
Water GHG &
Environmental Energy Hazardous Non-Hazardous Efficiency and Conventional Life Cycle Biodiversity
Management Efficiency Waste 3R Solid Waste 3R Pollutant Emissions Assessment Protection
System Team Team Team Team Load Reduction Reduction Team Team
Team Team
Water Efficiency
Environmental Hazardous Non-Hazardous GHG & Conventional
and Water Pollutant Environmental Biodiversity Protection
Management System Energy Manager Waste Reduction Solid Waste 3R Emissions Reduction
Load Reduction Manager Coordinator
Coordinator Coordinator Coordinator Coordinator
Coordinator
Water Efficiency
Environmental Hazardous Non-Hazardous GHG & Conventional Life Cycle Biodiversity
and Water Pollutant
Management System Energy Auditors Waste Reduction Solid Waste 3R Emissions Reduction Assessment Protection
Load Reduction
Team Members Team Members Team Members Team Members Team Members Team Member
Team Members
We consistently ensure that every employee responsible for environmental management possesses the relevant skills and
expertise. This commitment is an essential priority for us in improving the implementation of responsible manufacturing
patterns to minimize environmental impacts. In addition to delegating environmental management responsibilities to the
above organs, the Company continuously strives to implement a sustainable and comprehensive environmental management
system. In manufacturing activities at our production facilities, the Company has implemented an Environmental Management
System in compliance with the international standard of ISO 14001 which has been verified by an independent certification
body since 2012 at the Sidoarjo Plant. The Environmental Management System implementation is based on the Company’s
environmental management policies as described below:
THE COMPANY’S ENVIRONMENTAL MANAGEMENT POLICIES
Formulating and implementing short-term, medium-term, and long-term goals, objectives, and
programs by taking into account the characteristics, scale, and impact in accordance with the
environmental management system, energy management system, and green industry, while
1
continuously innovating.
Improving quality, competitive, and environmentally friendly products with efficient production
costs. 2
Opting for materials and machinery with efficient energy use and low greenhouse gas effects for
manufacturing processes. 3
Carrying out energy efficiency efforts and maximizing the use of new renewable energy through
monitoring, implementing, and encouraging design or development activities across the entire 4
Company.
Undertaking efforts to reduce greenhouse gas emissions for scopes one and two through monitoring
and implementation across the entire Company’s operations, up to the reporting to stakeholders. 5
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Encouraging the use of renewable materials and environmentally friendly chemicals. 6
Implementing raw material efficiency through monitoring, implementing, and encouraging design
or development activities across the entire Company. 7
Using water optimally and efficiently for company activities, as well as carrying out water conservation
programs. 8
Conducting maintenance and control of air pollution control equipment and machinery. 9
Reducing and controlling Hazardous Material and Hazardous Waste. 10
Controlling non-hazardous solid waste through 3R (Reduce, Reuse, Recycle). 11
Conducting an inventory of water usage, outlets of wastewater, Hazardous Waste and Non-Hazardous
Waste, and air pollution. 12
Undertaking efforts to protect and conserve biodiversity. 13
Identifying, conducting, and evaluating all company activities through Life Cycle Assessment/LCA
integrated with environmental, energy, and greenhouse gas emission aspects. 14
Involving the community in continuous improvement of the environmental management system. 15
The Company’s environmental management is carried out comprehensively, starting from compliance with environmental
licenses from the inception of the business through the preparation of Environmental Management Efforts and Environmental
Monitoring Efforts (Upaya Pengelolaan Lingkungan Hidup dan Upaya Pemantauan Lingkungan Hidup or ”UKL-UPL”). In connection
with this, the Company consistently complies with and fulfills all existing permits, periodically reviewing them to harmonize
them with environmental programs to be implemented. Moreover, each unit of activity, such as factories, warehouses, and
offices, undertakes initiatives to prevent adverse environmental impacts by implementing eco-efficiency in relevant processes
as part of continual improvement. We also conduct cradle-to-grave Life Cycle Assessments (“LCA”) to analyze the product cycle
from acquisition of raw materials, manufacturing processes, and product distribution to product usage. Through the LCA, we
are able to obtain data on the environmental impacts of the supply chain, manufacturing processes, and product distribution
so that they may serve as the basis for consideration for the development of environmental management. In addition
to the prevention, we also make efforts to mitigate environmental impacts by planting trees for carbon neutralization. [GRI 3-3]
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Responsible Environmental Management
Evaluation of Environmental Management
The evaluation of our ongoing environmental management is consistently carried out periodically to obtain a comprehensive
overview of the effectiveness of existing programs and to enhance management quality in relevant areas. At our production
facilities, we monitor environmental quality through collaboration with accredited environmental testing laboratories. The
results thereof are subsequently reported to both local and central governments every month and semester. This is done to
ensure that all the Company’s business units and production facilities are in accordance with applicable laws and regulations
as well as the Company’s policies.
We also participate in the Public Disclosure Program for Environmental Compliance (“PROPER”) organized by the Ministry
of Environment and Forestry (“MoEF”). PROPER is conducted through an assessment of the Company’s environmental
management performance in accordance with laws and regulations, indicated in the form of a rating. External assessments are
conducted by professionals who monitor and assess environmental performance objectively. [GRI 3-3]
Materials Used in Paint Production
The use of materials in paint production has a significant impact on the environment and the final product. Therefore, it is
crucial for us to take a holistic approach to selecting and using materials in paint production. In general, the use of materials
in paint production can be divided into two categories: renewable and non-renewable materials. Renewable materials we
use include calcium, raw materials of packaging from paper or cardboard, as well as plant-based materials and additives from
plants. Meanwhile, the non-renewable materials we use include solvents, pigments, and materials made from plastic. We
understand that if not managed properly, these materials will adversely impact the quality of the surrounding environment.
Therefore, their usage is continuously monitored and evaluated by the Board of Directors through various performance reports.
[GRI 3-3] [POJK F.5]
We also strive to combine the use of various environmentally friendly materials and sustainable production practices in
manufacturing better paint products. This allows the Company to contribute to environmental protection while still delivering
high-quality products. In this regard, the Company has implemented various efficiency programs that simultaneously
contribute to environmental protection by reducing product packaging waste. Our packaging efficiency projects have reduced
packaging waste by 205.81 tons, with details as follows:
1. Replacing cardboard packaging with lighter packaging, with a total reduction of 185.22 tons;
2. Reducing cardboard packaging with lighter packaging, with a total reduction of 15.57 tons;
3. Reducing plastic packaging by 3.35 tons;
4. Ensuring 100.00% of plastic gallon and pail packaging is reusable; and
5. Other programs with a reduction of 1.62 tons.
Apart from the efficiency measures, we also prioritize reusing water-based paint sludge for manufacturing processes in the
same cycle. This is part of our efforts to minimize the creation of hazardous waste caused by the sludge. In 2023 we were
able to reuse sludge as well as returned paint to the manufacturing process in the amount of 1,882.53 tons or 1.31% of the
total materials which means we have a material recycle ratio of 11.91 kg/ton of manufactured paint. Furthermore, we also
took the initiative to recycle solvent wash in the manufacturing of solvent-based paint. In 2023, we were able to reuse 166.27
tons of washing solvent as raw material for paint at a ratio of 5.68 kg/ton of manufactured paint. We also managed to reduce
hazardous waste disposal by 6.36%. [GRI 3-3, 301-2]
In 2023, we also lowered lead and chrome content in our products to 14.00%, exceeding the initial target of 17.90%. This
indicates our swift progress towards achieving lead-free and chrome-free products. This accomplishment is supported by the
significant increase in the launch of water-based products in 2023.
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Information regarding the use of materials in the paint production process is described as follows:
TYPES AND VOLUMES OF MAIN AND SUPPORTING MATERIALS FOR PAINT MANUFACTURE
[GRI 301-1]
Material Type Unit 2023 2022 2021
Renewable Materials Ton 72,903.20 61,888.17 80,411.00
Non-renewable Materials Ton 70,887.41 74,937.20 94,294.00
Total Purchase of Materials Ton 143,790.61 136,825.37 174,705.00
Material Reuse by Product Type
Sludge & Return Paint Washing Solvent
2023 2022 2021 2023 2022* 2021
1,882.53 2,567.74 1,263.45 166.27 180.87 230.05
Ton Ton Ton Ton Ton Ton
Material Reuse Ratio by Product Type
Sludge & Return Paint Washing Solvent
2023 2022 2021 2023 2022* 2021
11.91 17.08 6.15 5.68 5.81 5.44
Kg/Ton of Kg/Ton of Kg/Ton of
Kg/Ton of Products Kg/Ton of Products Kg/Ton of Products Solvent-Based Solvent-Based Solvent-Based
Products Products Products
Ratio of Renewable Material Usage Ratio of Recycled Material Usage [GRI 301-2]
2023 2022 2021 2023 2022 2021
50.70% 45.23% 46.03% 1.42% 2.00% 0.85%
* Data restated.
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Responsible Environmental Management
Energy Efficiency
The Company’s energy use covers a wide range of activities, from manufacturing to office operations. At the manufacturing
facilities, the Company needs energy to operate manufacturing machinery and equipment. While in the offices, energy is
needed for lighting, powering various electronic devices, and others. To meet these needs, most of the energy we use comes
from electricity, fuel oil (bahan bakar minyak or “BBM”) and gas obtained from third parties. These energy sources are always
used wisely by taking into account their environmental impacts. [GRI 3-3]
We acknowledge that a significant portion of the energy we consume is derived from fossil fuels, sourced from
non-renewable natural resources with increasingly limited availability. With this in mind, we are committed to energy
efficiency and gradually increasing the proportion of renewable energy sources in our operations. In pursuit of efficiency,
a key initiative we have implemented is maximizing the use of energy-efficient LED lighting. Additionally, we have
installed transparent fiber roofs in our manufacturing plants and warehouse areas to utilize sunlight as a source of lighting
during the day. We have also used street lighting that is powered by solar energy sources. [GRI 3-3, 302-4] [POJK F.7]
As for the manufacturing processes, we have reduced the use of forklifts to move can plates from the can manufacturer and
replaced them with a conveyor that directly connects the can manufacturer and the two solvent-based paint manufacturers,
and transformed the transfer of materials using pipes from the resin manufacturer to the paint manufacturer. The replacement
of forklifts can reduce energy use by 73,610 kgCO2e or the equivalent of planting 950 trees. We have also conducted a
re-layout of the finished goods warehouse and materials warehouse at the Sidoarjo paint plant to improve the efficiency of the
distribution process of goods. In addition to reducing the use of forklifts, we have also re-engineered the resin plant processes to
reduce cycle time by approximately 20%. The program can increase productivity and reduce energy and emissions. Specifically,
for the Sidoarjo plant, we have conducted initiatives for energy efficiency through compressor integration arrangements,
substitution of diesel energy for electricity, and replacement of conventional motors with more electricity-efficient inverter
motors. Fuel for the boiler and thermo used in our manufacturing activities are powered by State Gas Company (Perusahaan Gas
Negara or “PGN”) which produces lower emissions, as part of our efforts to support the transition towards more environmentally
friendly energy sources. [GRI 3-3, 302-4] [POJK F.7]
In addition, we have implemented an energy efficiency program of modifying cooling tower pumps to minimize energy
consumption. This innovation is estimated to reduce energy consumption by up to 37.7%, positively resulting in cost
savings of approximately IDR475.18 million in 1 year. [GRI 302-4] [POJK F.7]
Our energy usage and efficiency initiatives are continuously monitored and evaluated by the Board of Directors through
various periodic performance reports. The Company has been certified with ISO 50001:2018 on Energy Management Systems
in 2022, ensuring that energy performance is always monitored and energy efficiency efforts are maximized. [GRI 3-3]
Measurement of the Company’s energy use is obtained using a methodology that multiplies the physical unit energy
consumption and calorific value of each energy source, including gas, diesel, and electricity. The final results presented
for this report are the sum of energy consumption from these various energy sources. [GRI 302-1, 302-4] [POJK F.7]
Energy Conversion from Physical Units to TerraJoules (“TJ”)
Σ Energy Use (TJ) = Energy Use (physical unit) x Calorific Value (TJ/physical unit)
Source:
Guidelines for the Implementation of the National Greenhouse Gas Inventory Book II-Volume 1 Methodology for Calculating Greenhouse Gas Emission Levels
(Energy Sourcing and Use Activities).
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Based on this methodology, information on the Company’s energy use in all operational activities is described below:
Energy Usage [GRI 302-1] [POJK F.6]
Energy Source Unit 2023 2022 2021
Electricity GJ 51,149.38 49,348.66 54,248.59
Fuel Oil (Bahan Bakar Minyak or BBM) (Diesel) GJ 119,202.34 118,502.42 122,065.15
Gas GJ 43,561.14 43,483.43 48,089.43
Total Energy Usage GJ 213,912.86 211,334.51 224,403.17
Energy Intensity [GRI 302-3] [POJK F.6]
2023 2022 2021 2023 2022 2021
0.17 0.19 0.19 47.40 52.14 52.64
GJ/Ton of GJ/Ton of GJ/Ton of kWh/Ton of kWh/Ton of kWh/Ton of
Product Product Product Product Product Product
Energy Efficiency [GRI 302-3] [POJK F.6]
2023 2022 2021 2023 2022 2021
0.02 0 0.01 4.74 0.50 0.63
GJ/Ton of GJ/Ton of GJ/Ton of kWh/Ton of kWh/Ton of kWh/Ton of
Product Product Product Product Product Product
In total, the Company was able to reduce the total energy intensity of paint manufacturing from 52.14 kWh/ton of product to
47.40 kWh/ton of product, resulting in a 10.16% decrease in energy intensity in 2023. This calculation includes self-generated
and purchased energy for the Company’s operations.
Usage of Renewable Energy [POJK F.7]
In addition to focusing on implementing energy efficiency programs, the Company has gradually used renewable energy
sources that reduce greenhouse gas emissions, dependence on fossil fuels, and other negative environmental impacts. This is
also part of the Company’s efforts to implement sustainable production practices. In 2023, we have installed additional solar
panels on top of the Flamboyan warehouse totaling 660 panels with a generated energy capacity of 300.30 kWp. The use of
renewable energy can reduce emissions by 435,887 kgCO2e or equivalent to planting 4,880 trees. This initiative was positively
recognized by external parties, by receiving the Going Green is Good for Your Business award from Xurya Daya Indonesia.
We will continue to increase the installation of solar panels in the following years to increase the proportion of the use of
renewable energy sources. Information on the Company’s renewable energy usage is described below:
Energy Source Unit 2023 2022 2021
Solar Energy, Hydropower, etc GJ 1,814.71 906.82 674.91
Total Renewable Energy Usage GJ 1,814.71 906.82 674.91
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Responsible Environmental Management
Water Usage
Water is an essential need for the Company in carrying out operational activities. We use water to meet various purposes, such
as the manufacturing processes and various other supporting activities. Given that water is essential for our livelihood, the
Company is committed to using water wisely and implementing water management practices to ensure that its operational
activities do not negatively impact clean water availability in the surrounding environment. In addition to sourcing from
third parties, the Company’s water needs are met by underground wells at the manufacturing site. The existence of these
underground water wells has complied with local government permits and environmental permits such that there are no
negative impacts on the environment. [GRI 3-3] [POJK F.8]
To preserve future water availability, we have implemented various water efficiency programs, including reusing used water
for other purposes. We utilize rinsing water from tanks cleaning and sanitizing processes in raw material mixtures, while still
emphasizing quality standards. In 2023, we were able to reuse 0.65 megaliters of industrial wastewater or a ratio of 5.06 L/ton
of water-based products. In addition to reusing wastewater, we constantly ensure that our wastewater management
is in accordance with applicable standards and regulations. To manage liquid waste from domestic processes at the paint
manufacturing sites, we have implemented a Sewage Treatment Plant. Additionally, filtration and ozonation are used to treat
industrial wastewater. We also continuously supervise water management practices and report the results to the relevant
agencies every month to ensure that no wastewater exceeds the specified quality threshold. [GRI 3-3, 303-1, 303-2] [POJK F.8]
The Company has also implemented a cooling system and rainwater harvesting system, significantly reducing water
consumption. In addition, the Company also has a flowmeter in place to monitor the water flow rate in the rainwater harvesting
system. [GRI 3-3, 303-1, 303-2] [POJK F.8]
Information on the Company’s water usage in all operational activities is described as follows:
WATER USAGE AND INTENSITY [GRI 303-3] [POJK F.8]
Water Source Unit 2023 2022 2021
Groundwater Megaliter 99.32 79.25 84.32
Third-Party
Megaliter 42.36 34.73 45.94
(Perusahaan Daerah Air Minum or PDAM)
Total Water Usage Megaliter 141.68 113.98 130.26
Intensity of Water Usage Megaliter/Ton of Product 0.0009 0.0008 0.0008
Water Disposal [GRI 303-4]
Domestic Industry
2023 2022 2021 2023 2022 2021
3.71 3.70 4.36 0.12 0.44 0.18
Megaliter Megaliter Megaliter Megaliter Megaliter Megaliter
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Chemical Oxygen Demand (“COD”) [GRI 303-4]
Domestic Industry
2023 2022 2021 2023 2022 2021
11.93 2.48 0.90 5.49 5.13 5.17
Ton Ton Ton Ton Ton Ton
Throughout 2023, the Company’s daily COD value has met government standards stipulated in East Java Governor Regulation
No. 52 of 2014 on Quality Standards for Paint and Ink Industry Wastewater, as well as Regulation of the Minister of Environment
and Forestry of the Republic of Indonesia No. P.68/Menlhk/Setjen/Kum.1/8/2016 on Domestic Waste. Daily COD values were
obtained from analytical test data published by a laboratory certified by the National Accreditation Committee (Komite
Akreditasi Nasional or KAN).
Ratio of Industrial Wastewater Recycle
2023 2022 5.22 Liter/Ton of Water-Based Products
5.06 Liter/Ton of Water-Based Products 2021 4.80 Liter/Ton of Water-Based Products
Emissions Management
The impacts of climate change are increasingly felt today, as the average temperature of the Earth’s surface increases. Climate
change is triggered by global warming, which is caused by increased emissions of carbon dioxide and greenhouse gases (“GHG”)
generated by the use of fossil fuels, forest fires, waste, and industrial processes. As the threat of global warming becomes more
evident, including its potential negative impacts on our livelihoods, the Indonesian government has committed to taking
a role in reducing greenhouse gas emissions. This commitment was reinforced by the issuance of Presidential Regulation
No. 61/2011 on the National Action Plan for Reducing Greenhouse Gas Emissions (Rencana Aksi Nasional Penurunan Emisi Gas
Rumah Kaca or “RAN-GRK”), which is a working document containing efforts to reduce greenhouse gas emissions in Indonesia.
This Presidential Regulation has been followed by the issuance of Presidential Regulation No. 71 of 2011 on the Implementation
of the National Greenhouse Gas Inventory. [GRI 3-3]
As a company that contributes to GHG emissions, we are also committed to supporting government steps and policies to
reduce the negative impacts of greenhouse gases. In this regard, we have signed a hub zero net agreement with member
companies of the Indonesian Chamber of Commerce and Industry (Kamar Dagang dan Industri Indonesia or “Kadin”) as
part of the commitment to achieve zero net emissions by 2050. The tangible steps that the Company has taken are mainly
through low-carbon manufacturing processes. Gradually, we have reduced the use of forklifts to move can plates from the
can manufacturer and replaced them with a conveyor that directly connects the can manufacturer and the two solvent-based
paint manufacturers and transformed the material transfer to pipelines from the resin manufacturer to the paint manufacturer.
We have also replaced diesel-based forklifts with electric ones to reduce GHG emissions directly resulting from the use of fossil
fuels. In addition to lowering the amount of emissions produced, we also conduct carbon emission compensation activities by
planting Acacia Curmis (Acacia Auriculiformis) trees on the slopes of Mount Arjuno, Pasuruan, as many as 5,000 trees. To date,
the Company has planted 10,000 trees. [GRI 3-3] [POJK F.12]
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Responsible Environmental Management
We also periodically measure emissions in our operational areas and conduct evaluations to seek innovations that may reduce
GHG. The base year we use to calculate greenhouse gas emissions is 2021, as in that year the Company had just started a
comprehensive greenhouse gas emission inventory process using a digitized system that facilitates the monitoring process.
[GRI 305-1]
During the reporting year, we have measured the level of greenhouse gas emissions produced, both scope 1 greenhouse gas
emissions and scope 2 greenhouse gas emissions. The main source of scope 1 greenhouse gas emissions is the consumption
of fossil fuels, while scope 2 emissions come from the generation of electricity purchased or obtained from State Electricity
Company (Perusahaan Listrik Negara or “PLN”). The calculation is based on the following formula: [GRI 3-3, 305-1, 305-2]
Scope 1 Greenhouse Gas Emissions
Σ Emission = Fuel Consumption (liter) x Emission Factor (Kg/Tj)2) x NCV (Tj/liter)
Scope 2 Greenhouse Gas Emissions
Σ Emission = Electricity Consumption (kWh) x Emission Factor (kgCO2/kWh)
Greenhouse Gas Emissions Produced
Emission Source Unit 2023 2022 2021
Scope 1 Greenhouse Gas Emissions [GRI 305-1] [POJK F.11]
Fuel Oil (Bahan Bakar Minyak or BBM) (Diesel) TonCO2e 292.12 488.62 890.17
Gas TonCO2e 2,443.65 2,439.29 2,697.68
Total Scope 1 Emissions TonCO2e 2,735.77 2,927.91 3,587.85
Indirect Scope 2 Greenhouse Gas Emissions [GRI 305-2] [POJK F.11]
Electricity from PLN TonCO2e 8,581.65 8,480.08 9,797.75
Total Scope 2 Emissions TonCO2e 8,581.65 8,480.08 9,797.75
Total Scope 1 and Scope 2 Emissions TonCO2e 11,317.42 11,408.00 13,385.60
The Intensity of Scope 1 and Scope 2 Greenhouse Gas Emissions [GRI 305-4] [POJK F.11]
2023 2022 25.15 KgCO e/Ton of Product
2
23.27 KgCO e/Ton of Product
2
2021 24.83 KgCO e/Ton of Product
2
EMISSIONS NEUTRALIZATION PROGRAM THROUGH PLANTING TREES [GRI 305-5] [POJK F.12]
Emission Source Unit 2023 2022 2021
Mount Arjuno
Total Trees Planted Trees 10,000 5,000 0
Type of Trees Planted Type 2 2 0
Carbon Sequestration Value KgCO2e 765,100 520,100 0
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Emission Source Unit 2023 2022 2021
The Company’s Environment
Total Trees Planted Trees 4,880 1,797 818
Type of Trees Planted Type 92 67 41
Carbon Sequestration Value KgCO2e 435,887 421,237 398,941
Notes: Data is accumulated from year to year.
Through various energy efficiency and emission strategies, in 2023, the Company successfully reduced scope 1 and scope 2
GHG emissions by 90.58 TonCO2e compared to the previous year. When compared to the 2021 baseline, the Company has
reduced its scope 1 and scope 2 GHG emissions by 15.45%.
Emissions of Ozone-Depleting Substances [GRI 305-6]
The use of goods or materials that destroy the ozone can have negative impacts on the environment, especially on climate
change. Ozone-Depleting Substances (“ODS”) are chemical compounds that have the potential to react with ozone molecules
in the stratosphere. ODS are commonly used for air conditioning machines, refrigerators, and light fire extinguishers (alat
pemadam api ringan or “APAR”) cylinders.
Irresponsible use of ODS will lead to the erosion of the ozone layer resulting in environmental degradation, limited clean water
sources, damage to the marine food chain, and other environmental problems. We recognize the environmental risks involved
in the use of ODS and are committed to implementing policies to reduce and even shift towards more environmentally friendly
materials.
We have analyzed our operations at the plants and offices to determine whether or not ODS are being used. The results of
the analysis indicate potential uses of ODS in supporting operational activities at the plant and office sites, i.e., the use of air
conditioners and fire extinguishers. In accordance with our commitment to reduce GHG emissions, including those caused by
ODS, we have several policies in place, among others:
1. Using environmentally friendly R 410 air conditioners; and
2. Using non-CFC and non-Halon fire extinguishers.
As for manufacturing activities, our analysis showed that no ODS were generated.
Air Emissions of Nitrogen Oxides (NOx), Sulfur Oxides (SOx), and Other Significant Air Emissions
[GRI 305-7]
Conventional gas emissions in the form of NOx, SOx, and other air emissions are generated from the paint manufacturing
process. We strive to manage these conventional emissions in accordance with the quality standards set by the government
while reducing their generation. We routinely carry out monitoring and reporting procedures, the results of which will be used
as the basis for continuous improvement in emissions management. Based on the results of emission monitoring conducted
by the KAN-Certified Laboratory in 2023, the parameters of NOx and SOx have met the environmental quality standards.
The monitoring results for the last 3 years are described as follows:
Government
Parameter Unit 2023 2022 2021
Quality Standard
NOx mg/Nm3 650 70.33 41.27 112.64
SOx mg/Nm3 150 4.63 9.64 13.76
Notes: The quality standard value is adjusted to the East Java Governor Regulation No. 10 Year 2009.
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Waste Management and Utilization
The Company’s operational activities generate waste. Based on substance type, the generated waste consists of solid waste
and liquid waste. Based on category, the Company’s waste consists of hazardous waste and non-hazardous waste. We are
highly committed to managing each generated waste to prevent it from adversely affecting the environment, causing harm
to human health, contaminating soil and waters, changing air temperature and quality, and contributing to climate change.
All waste treatment is carried out in accordance with the standards so that it does not exceed the quality standard thresholds
stipulated in laws and regulations or licenses. In addition, we also work with third parties who have recycling permits to utilize
the Company’s waste, especially hazardous waste. [GRI 3-3, 306-1]
A comprehensive overview of waste generation and management across the Company’s business processes can be seen below:
IDENTIFICATION OF WASTE IMPACTS AND MANAGEMENT [306-1]
Type of
Impacts of Waste on
Operational Type of Waste Generated Management Efforts
the Environment
Activities
• Sludge;
• Used Lubricant Oil;
• Used Hazardous Waste Packaging;
Raw Material Soil, water, and
• Rags (Kain Majun);
Storage air pollution.
• Used Battery;
• Plastic Waste; and
• Inorganic and Non Recyclable Waste.
• Sludge;
• Used Lubricant Oil; • Dispose of waste to Hazardous
Soil, water, and air pollution Waste Temporary Disposal Site
Mixing • Used Hazardous Waste Packaging;
or odors. (Tempat Pembuangan Sampah or
• Rags; and
• Used Solvents. “TPS”);
• Using rags/sand; and
• Sludge; • Exhause for indoor air circulation.
• Used Lubricant Oil; Soil, water, and air pollution
Grinding
• Used Hazardous Waste Packaging; and or odors.
• Rags.
• Sludge;
• Used Lubricant Oil;
Soil and air pollution or
Filling • Used Hazardous Waste Packaging;
odors.
• Rags; and
• Used Solvents.
• Disposing of waste to Hazardous
Waste TPS;
• Sludge;
• Using rags/sand;
• Used Lubricant Oil; Soil, water, and
Tinting • Covering the tank during the
• Used Hazardous Waste Packaging; and air pollution.
process; and
• Rags.
• Installing ventilator on the roof area
of the tinting tank.
• Sludge;
• Used Lubricant Oil; • Disposing of waste to Hazardous
Packing • Used Hazardous Waste Packaging; Soil, water, and air pollution Waste TPS; and
• Used Battery; and or odors. • Using rags/sand.
• Rags.
CLASSIFICATION OF IMPACTS OF WASTES GENERATED
Primary Impact Secondary Impact
• Photochemical oxidation;
• Abiotic (fossil and non-fossil) decline potential;
• Global warming potential;
• Biotic decline potential;
• Ozone depletion potential;
• Carcinogenic;
• Acid rain potential; and
• Toxicity;
• Eutrophication potential.
• Water footprint; and
• Land use change.
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Operational Activities
Production Outputs Waste
Hazardous Waste Non-Hazardous Waste Effluent
Processed in
Handed Over to Utilized as Alternative Handed Over to Water Treatment Plant
Licensed Third Parties Raw Materials Licensed Third Parties and Sewage Treatment
Plant
In addition to waste management, we implement a reduce, reuse, recycle (“3R”) program for returned paint waste, which is
generally due to damaged packaging during storage, errors in customer orders, and other causes. The returned paint is sorted
according to its condition to be recycled by processing it into paint products for special purposes. Returned paint is also used
as raw material to make new paint with specifications that match the type of material so that no returned paint is wasted.
For hazardous waste that cannot be treated, the Company makes efforts to collect, separate, and hand over hazardous waste
to collectors, transporters, processors, and users of hazardous waste who are licensed by the Government. Meanwhile, non-
hazardous waste from activities is collected in each business unit to be handed over to waste collectors in accordance with the
provisions of the Sanitation Agency in each location. In 2023, non-hazardous waste accounted for only 17.27% of the overall
waste from paint plants. [GRI 3-3, 306-2, 306-4] [POJK F.13, F.14]
Information on the amount of waste generated from the Company’s operational activities is described below:
Total Generated Waste [GRI 306-3] [POJK F.13]
Type of Waste Unit 2023 2022 2021
Hazardous Waste
Solid Ton 806.69 850.81 449.18
Liquid Ton 80.08 96.15 125.04
Total Hazardous Waste Ton 886.77 946.96 574.22
Non-Hazardous Waste
Total Non-Hazardous Waste Ton 185.07 157.68 98.14
Total Generated Waste Ton 1,071.84 1,104.64 672.36
Through various waste efficiency and management strategies, in 2023, the Company successfully reduced total generated
waste by 32.80 tons compared to the previous year.
Transport and Reuse of Waste and Effluent [GRI 306-4]
The Company is committed to managing generated waste through various processes, including transportation and treatment.
The total hazardous waste that is handed over to third parties for transport, and waste that is treated and reused by the
Company, is described as follows:
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Type of Waste Unit 2023 2022 2021
Hazardous Waste Handed Over to Third Parties Ton 886.77 946.96 574.22
Reuse of Hazardous Waste
Industrial Waste Ton 1,820.24 2,482.98 1,263.45
Washing Solvent Ton 166.27 180.87* 230.05
Sludge Ton 62.29 84.76 0
Total Reuse of Hazardous Waste Ton 2,048.79 2,748.61* 1,493.50
Reuse of Effluent
Cleaning Water
Water-Based Paint Liter 376,188 370,466 326,014
Water-Based Resin Liter 275,536 252,069 331,317
Total Reuse of Effluent Liter 651,724 622,535 657,331
* Data restated.
Effluent Discharge from Water Treatment Plant and Sewage Treatment Plant Processes Plant
2023 2022 4.14 Megaliter
3.83 Megaliter 2021 4.54 Megaliter
Spill Incident
Spills of chemicals, oil, fuel, or other hazardous substances may negatively impact soil, water, air quality, biodiversity, and
human health. Therefore, we carefully manage the use of various materials or substances with spillage risks. The efforts were
successful as demonstrated by the absence of spill incidents of chemicals, oil, fuel, waste, or other hazardous substances in
2023. Therefore, no significant adverse impacts were attributed to the Company in connection with these incidents. [GRI 306-3]
[POJK F.15]
Biodiversity
Biodiversity represents the variety of living organisms with diverse variations within a specific environment. Indonesia’s diverse
natural landscape has prompted the Company to actively participate in preserving biodiversity through various conservation
programs for flora and fauna, aligned with the Company’s business scope. For us, protecting biodiversity is crucial to ensure
the survival of flora and fauna species, genetic diversity, and natural ecosystems. Beyond that, we recognize that natural
ecosystems provide clean air and water, contributing to food security and human health. Biodiversity also directly contributes
to local livelihoods, making it essential for poverty reduction, and sustainable development. [GRI 3-3]
In this regard, we have conducted an Acacia Curmis tree planting program on the slopes of Mount Arjuno, Pasuruan, covering
an area of 5.5 hectares. In 2023, we planted a total of 5,000 trees. Therefore, the number of trees we have planted from the
beginning, has reached 10,000 trees, and was able to absorb greenhouse gas emissions of approximately 765,100 kgCO2e.
In addition, we also realized a reforestation program in the area of our plants, in addition to plant seeding. With these efforts,
we hope to increase biodiversity, both flora and fauna. [GRI 304-3] [POJK F.10]
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Additionally, the Company also ensures that none of our operational areas are adjacent to or intersect with protected areas,
conservation areas, or areas with high biodiversity value. Therefore, our operations have no negative impact on biodiversity.
[GRI 304-1, 304-2] [POJK F.9]
Environmental Management Costs
In an effort to preserve the environment, we regularly budget a certain amount of funds for the smooth implementation
of various activities carried out. We also continue to strive for cost efficiency by looking for third parties as users, so that
environmental management costs may be further reduced. Information on the amount of costs incurred by the Company is
described as follows: [POJK F.4]
Environmental Management Costs
2023 2022 1,524 Million Rupiah
1,059 Million Rupiah 2021 1,257 Million Rupiah
Complaints on Environmental Issues [GRI 2-25] [POJK F.16]
We provide access for all stakeholders who feel disadvantaged due to environmental issues caused by the Company’s
operational activities so that they are able to submit their complaints through monthly meetings organized by the Company
with local village officials. Any incoming report of complaint will be processed and followed up properly and professionally.
If necessary, the Company will hold further face-to-face forums with the relevant parties, to further determine what steps will
be taken to resolve the existing problems.
Over the past 3 years, we have not received any material and significant complaints related to environmental issues. [GRI 2-16]
Environmental Compliance
We consistently ensure that all operational activities comply with prevailing environmental laws and regulations in the Republic
of Indonesia, implemented through management and monitoring to improve environmental performance. The Company’s
environmental programs have been well implemented, allowing us to maintain positive results in the Public Disclosure
Program for Environmental Compliance (“PROPER”) with a Green rating. We are the only Indonesian paint company to have
been awarded the Green PROPER by the Ministry of Environment and Forestry for 2 consecutive years. This rating demonstrates
that we have gone beyond the compliance standards in environmental management.
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Maintaining the Growth of the Company’s Personnel “The Company understands that our employees are our main foundation in implementing sustainable business practices. With that in mind, we are committed to providing a decent, safe and healthy working environment. In addition, we continue to encourage the development and optimization of employee potential for mutual progress, both for employee development and the Company’s performance.” 102 PT Avia Avian Tbk - 2023 Sustainability Report
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OUR ACHIEVEMENT [GRI 3-3]
Organizational
Increased level of
Increased investment continuity in
employee engagement,
in employee the form of an
as reflected in a Digital transformation
competence employee promotion
0.87%
development, reaching program, involving (paperless) of
a total of HR Business Process.
136.32% .
66 personnel.
decrease in employee
turnover.
1 2 3 4
The Company’s success in maintaining a competitive advantage amid the dynamic paint industry competition is inseparable
from the presence of our employees, both the Company’s employees and outsourced employees, who continue to develop in
accordance with the industry needs and trends. Therefore, we continuously fulfill the needs of each employee in accordance
with applicable laws and regulations as well as best practices in similar industries. We consistently maintain our commitment
to the fulfillment of employee rights without discrimination. A decent, safe and healthy working environment remains our
priority through the implementation of the Occupational Health and Safety Management System. All programs related to
employee management are evaluated regularly to minimize gaps between their implementation and the best practices in
similar industries as well as the accuracy of the intended aims and targets. [GRI 3-3]
Human Resources Management
Human resources (“HR”) is one of the important factors in supporting the Company’s growth. As a company that always produces
innovative products, the Company requires human resources who have the knowledge and skills concerning products, processes,
and improvements to always present the best products to the public. Moreover, employees are also the frontline of service and,
therefore, are instrumental in shaping the Company’s image as a company with the ability to produce paint product variants
with reliable product quality and provide the best services. This has allowed the Company to maintain its position as the public’s
first choice. This understanding serves as the foundation for us to constantly fulfill our commitment to managing our HR in a
professional, effective, and calculated manner in order to develop employees with excellence, competence, and integrity. In
managing our employees, the Company has established Human Resource and General Affair (“HRGA”) units, specifically units in
charge of Employee Development, Organizational Development, Recruitment, Human Resource Information System (“HRIS”),
Human Resource Operations, as well as General Affair and Industrial Relation as the responsible organs. We continuously ensure
that every employee responsible for managing the Company’s HR possesses the relevant skills and expertise, by conducting
competence certifications of Certified Human Resource Manager (“CHRM”) and Assessment Center Assessor Certification (“ACAC”).
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Maintaining the Growth of the Company’s Personnel
More detailed information about the Company’s HR management structure is described as follows: [GRI 3-3]
HRGA
POD & Recruitment HR Operations
People Organization Personel Industrial
Recruitment HRIS General Affair
Development Development Administration Relation
In addition, the Company is committed to creating a productive and comfortable working environment for all employees. This
is manifested in the formulation and review of the effectiveness of Company-wide Standard Operating Procedures (“SOP”)
consisting of 9 SOPs, 1 standard, and 18 forms in 2023.
Diversity and Equality [POJK F.18]
The Company respects and values the differences between people, in terms of gender, class, skin color, ethnicity, religion,
race, social status, political views, and so on. For us, diversity is a privilege that brings color to our social life. In line with
this, we are committed to creating an inclusive and conducive work environment with equal treatment of all employees.
This commitment is realized by the implementation of anti-discrimination policies stipulated in the Business Ethics and
Code of Conduct, and absorbed into the Company’s internal policies and SOPs, particularly the Anti-discrimination SOP
(AA-HRD-SOP-29). The implementation of the policy regulates matters related to the recruitment process, competence
development, career development, and the granting of employee rights, which rely fully on the competence and performance
of each employee and do not prioritize any particular gender.
Employees can express themselves in accordance with their respective talents and skills, resulting in significant performance
productivity. On the other hand, the Company will respond to discriminatory treatment in any form, which can be reported in
accordance with the complaint procedure and the Whistleblowing System. Any proven discriminatory actions may be subject
to sanctions in accordance with the Disciplinary procedure, including Termination of Employment. [GRI 3-3] [POJK F.18]
The Company’s commitment to diversity resulted in zero discrimination incidents during the reporting year. Therefore, no
remediation is being or has been implemented. [GRI 406-1]
Compared to the previous year, the total employees of AVIA, TKTW, and TKBI in 2023 increased by 4.97% to 8,477 personnel.
This reflects AVIA’s continued growth as an organization, and its capacity to provide more jobs to the community compared
to the previous year, at a time when other companies were cutting back. In addition to promoting gender equality and
anti-discrimination, we also strive to maintain organizational excellence amid evolving economic and business dynamics.
Our commitment to realizing gender equality and anti-discrimination is described in the following table: [GRI 3-3]
EMPLOYEE DEMOGRAPHICS [GRI 2-7, 405-1] [POJK C.3]
2023** 2022** 2021*
Description
Male % Female % Male % Female % Male % Female %
Total Employees by Gender and Employment Status
Permanent Employees 997 71.83 391 28.17 929 74.50 318 25.50 893 72.13 345 27.87
Non-Permanent Employees 128 57.92 93 42.08 119 42.50 161 57.50 111 53.37 97 46.63
Outsourced 5,629 81.96 1,239 18.04 5,403 82.50 1,146 17.50 5,276 84.51 967 15.49
Total 6,754 79.67 1,723 20.33 6,451 79.88 1,625 20.12 6,280 81.68 1,409 18.32
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2023** 2022** 2021*
Description
Male % Female % Male % Female % Male % Female %
Total Employees by Gender and Workers’ Status***
Full-time Employees 6,754 79.67 1,723 20.33 6,451 79.88 1,625 20.12 6,280 81.68 1,409 18.32
Total 6,754 79.67 1,723 20.33 6,451 79.88 1,625 20.12 6,280 81.68 1,409 18.32
Total Employees by Gender and Education Level
Master’s Degree 19 63.33 11 36.67 16 69.57 7 30.43 8 80.00 2 20.00
Bachelor’s Degree 1,226 67.10 601 32.90 1,125 68.10 527 31.90 1,005 68.88 454 31.12
Diploma (D3) 189 62.79 112 37.21 171 62.18 104 37.82 175 61.84 108 38.16
≤High School and Equivalent 5,320 84.19 999 15.81 5,139 83.89 987 16.11 5,092 85.77 845 14.23
Total 6,754 79.67 1,723 20.33 6,451 79.88 1,625 20.12 6,280 81.68 1,409 18.32
Total Employees by Gender and Age
>50 Years Old 130 90.28 14 9.72 113 88.28 15 11.72 99 89.19 12 10.81
36 – 50 Years Old 1,814 83.71 353 16.29 1,713 84.05 325 15.95 1,614 83.84 311 16.16
18 – 35 Years Old 4,810 78.01 1,356 21.99 4,625 78.26 1,285 21.74 4,567 80.79 1,086 19.21
<18 Years Old 0 0 0 0 0 0 0 0 0 0 0 0
Total 6,754 79.67 1,723 20.33 6,451 79.88 1,625 20.12 6,280 81.68 1,409 18.32
Total Employees by Gender and Position
Deputy Director 16 94.12 1 5.88 16 94.12 1 5.88 15 88.24 2 11.76
Manager 207 85.19 36 14.81 186 84.55 34 15.45 171 85.07 30 14.93
Supervisor 454 69.31 201 30.69 419 71.02 171 28.98 412 71.65 163 28.35
Staff 448 64.55 246 35.45 428 61.06 273 38.94 1,529 84.94 271 15.06
Outsourced 5,629 81.96 1,239 18.04 5,402 82.50 1,146 17.50 4,153 81.50 943 18.50
Total 6,754 79.67 1,723 20.33 6,451 79.88 1,625 20.12 6,280 81.68 1,409 18.32
Notes:
* AVIA and TKTW;
** AVIA, TKTW, and TKBI; and
*** All AVIA, TKTW, and TKBI employees are full-time employees and therefore there are no part-time employees.
Employee demographics in the table above represent the Company’s overall employee composition, which consists of direct
and indirect workers. Direct workers consist of permanent and non-permanent employees, while indirect workers consist of
outsourced employees whose composition is explained in the table above. [GRI 2-8]
Our commitment to promoting equality has also been implemented at the Manager level and above. In 2023, out of the
entire AVIA, TKTW, and TKBI employees at the Manager and Deputy Director level, there has been an increase from 35 female
employees in 2022 to 37 female employees out of a total of 260 employees in 2023.
FEMALE EMPLOYEE INVOLVEMENT AT MANAGER AND DEPUTY DIRECTOR LEVELS
2023** 2022** 35 out of 237 Employees
37 out of 260 Employees 2021* 32 out of 218 Employees
Notes:
* AVIA and TKTW; and
** AVIA, TKTW, and TKBI.
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Maintaining the Growth of the Company’s Personnel
Employee Recruitment and Turnover
In line with implementing the equality principle, all of the Company’s recruitment processes are carried out transparently
and without discrimination in any form, which includes the non-existence of the practice of recruitment fees and gender
criteria in employee recruitment. The employee recruitment process is carried out selectively, by considering the compatibility
of job requirements with the competencies of prospective employees. Thus, all qualified candidates can participate in the
recruitment process, either through e-recruitment on the Company’s website or other job vacancy channels.
To meet the needs of permanent employees, we employ 2 recruitment systems, namely internal and external recruitment.
Internal recruitment includes promotions, mutations, and rotations, specifically at the permanent employee level. Employee
mutations and rotations are based on the evaluation of an employee’s eligibility for the position, measured by conducting
competence assessments, and specifically for the purpose of promotions, assessments are carried out by superiors to their
subordinates as well as a series of other assessment processes. Meanwhile, external recruitment is carried out by directly
recruiting employees from outside the Company to fulfill the needs of employees. Both systems allow the Company to obtain
employees with relevant quality and competence.
The total number of employees recruited by AVIA, TKTW and TKBI to fill permanent positions throughout 2023 reached
246 people. This recruitment was mainly influenced by the development of support areas for the Subsidiaries. Meanwhile,
the turnover rate of AVIA, TKTW, and TKBI’s permanent employees reached 0.89%, a decrease from the previous year. The
composition of recruitment and turnover of permanent employees of AVIA, TKTW, and TKBI is described as follows: [GRI 401-1]
RECRUITMENT OF PERMANENT EMPLOYEES [GRI 401-1]
2023** 2022** 2021*
Description
Total % Total % Total %
Recruitment of Permanent Employees by Age
>50 Years Old 0 0 1 0.42 0 0
36 – 50 Years Old 209 84.96 53 22.27 50 26.46
18 – 35 Years Old 37 15.04 184 77.31 139 73.54
<18 Years Old 0 0 0 0 0 0
Total 246 100.00 238 100.00 189 100.00
Recruitment of Permanent Employees by Gender
Male 167 67.89 177 74.37 155 82.01
Female 79 32.11 61 25.63 34 17.99
Total 246 100.00 238 100.00 189 100.00
Recruitment of Permanent Employees by Operational Areas
AVIA
Surabaya 31 12.60 26 10.92 18 9.53
Sidoarjo 30 12.20 62 26.05 64 33.86
Serang 10 4.07 10 4.20 1 0.53
Cirebon 2 0.81 0 0 0 0
TKTW & TKBI
Area 1A North Sumatra 13 5.29 10 4.20 4 2.12
Area 1B South Sumatra 15 6.10 13 5.47 8 4.23
Area 2 Jabodetabekser 6 2.44 4 1.68 2 1.06
Area 3 West Java 11 4.47 13 5.46 7 3.70
Area 4 Central Java 8 3.25 10 4.20 10 5.29
Area 5 East Java 46 18.70 43 18.07 42 22.22
Area 6 Sulawesi 16 6.50 12 5.04 7 3.70
Area 7 Kalimantan 22 8.94 13 5.47 16 8.47
Area 8 Eastern Indonesia 36 14.63 22 9.24 10 5.29
Total 246 100.00 238 100.00 189 100.00
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TURNOVER OF PERMANENT EMPLOYEES [GRI 401-1]
2023** 2022** 2021*
Description
Total % Total % Total %
Turnover of Permanent Employees by Age
>50 Years Old 11 8.40 3 1.52 3 2.54
36 – 50 Years Old 45 34.35 119 60.41 62 52.54
18 – 35 Years Old 75 57.25 75 38.07 53 44.92
<18 Years Old 0 0 0 0 0 0
Total 131 100.00 197 100.00 118 100.00
Turnover of Permanent Employees by Gender
Male 100 76.34 121 61.42 94 79.66
Female 31 23.66 76 38.58 24 20.34
Total 131 100.00 197 100.00 118 100.00
Turnover of Permanent Employees by Operational Area
AVIA
Surabaya 6 4.58 9 4.57 6 5.08
Sidoarjo 15 11.45 91 46.19 22 18.64
Serang 6 4.58 13 6.60 8 6.78
Cirebon 0 0 0 0 0 0
TKTW & TKBI
Area 1A North Sumatra 5 3.82 4 2.03 4 3.39
Area 1B South Sumatra 11 8.40 9 4.57 10 8.47
Area 2 Jabodetabekser 7 5.34 3 1.52 5 4.24
Area 3 West Java 9 6.87 10 5.08 13 11.02
Area 4 Central Java 7 5.34 16 8.12 10 8.47
Area 5 East Java 15 11.45 19 9.64 19 16.10
Area 6 Sulawesi 14 10.69 6 3.05 6 5.08
Area 7 Kalimantan 17 12.98 6 3.05 9 7.63
Area 8 Eastern Indonesia 19 14.50 11 5.58 6 5.08
Total 131 100.00 197 100.00 118 100.00
Turnover of Permanent Employees by Reason
Retirement 7 5.34 0 0 3 2.54
Resignation 73 55.73 94 47.71 66 55.93
Termination of Employment 42 32.06 22 11.17 23 19.50
Death 3 2.29 1 0.51 4 3.39
Change in Employment Status 6 4.58 80 40.61 22 18.64
Total 131 100.00 197 100.00 118 100.00
Turnover of Permanent Employees by Position
Deputy Director 0 0 2 1.02 1 0.85
Manager 19 14.50 16 8.12 10 8.47
Supervisor 83 63.36 72 36.55 74 62.71
Staff 29 22.14 107 54.31 33 27.97
Total 131 100.00 197 100.00 118 100.00
Notes:
* AVIA and TKTW; and
** AVIA, TKTW, and TKBI.
This calculation of employee recruitment and turnover does not include outsourced employees due to the high fluctuation of
outsourced employees which is dependent on the increase or decrease in production.
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Employee Competence Development [POJK F.22][GRI 404-2]
Excellent, competent, dedicated and ethical human resources is a major factor in achieving the Company’s vision, mission and
goals. Therefore, we develop strategic policies on continuous employee development. We believe that a focus on developing
employee competence will improve our internal business processes, which in turn will drive the Company’s performance. This
commitment to improving competence across all processes is also critical to the development and manufacture of innovative
and competitive products. The competence development program is implemented through training and certifications, special
assignments, and coaching and mentoring schemes based on the Company’s development needs and priorities formulated by
the HR Department together with the management. In general, the Company’s employee competence development program
is aimed at 5 aspects as described below: [GRI 3-3]
EMPLOYEE COMPETENCE DEVELOPMENT PROGRAM
Basic Training
Mandatory training for all employees, such as training on Corporate Values (CInTA), GCG, Code of Conduct, and 1
so on.
Technical Training
Training aimed at improving the technical capabilities of employees in order to enhance their abilities and 2
performance in line with the Company’s needs.
Soft Skill Training
Training to improve employees’ non-technical skills, such as effective communication, creative and critical 3
thinking, team building, and other skills related to individual personality capacity.
Leadership Program
A program aimed at preparing employees to become leaders through a leadership ladder program.
4
Certification and Standardization Training
Training to ensure employees’ technical and specialized skills are standardized according to their job functions.
5
In addition, the Company provides programs and rewards to channel employees’ innovation and creativity, in the form of:
1. Internal Improvement Initiative - I3 (inter-department improvement program); and
2. Suggestion System - SS (personal improvement).
These programs are continual and evaluated annually, and serve as a key performance indicator value for each unit/section.
We have also successfully ingrained our Value (CInTA) through the publication of the Avian Newsletter and a series of other
supporting programs. All employee activities guided by CInTA Value are always highlighted in the Avian Newsletter in order
to disseminate this Value across the organization. In addition, this program also provides insight and updates about the
Company, such as employee promotion programs, innovations, development programs, CSR, new product launching, ongoing
and upcoming employee activities, and recent achievements.
The Company also has an Avian Development Program (“ADP”) that is specifically designed to prepare and develop
the Company’s future leaders. The program offers diverse learning opportunities, ranging from in-class learnings,
on-the-job activities, peer and mentor supports, aimed at cultivating graduates with a wide range of accomplished technical
and managerial skills.
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Since 2022, we have increased the scope of data measurement of our competence development programs to include both
permanent and non-permanent employees of the Company. Whereas in 2021, the Company only focused on the development
of permanent employees, without involving outsourced employees. The realization of competence development programs
for AVIA, TKTW, and TKBI employees implemented by the Company throughout 2023 amounted to 5 programs with a total
of 6,173 participants. All employee competence development programs are periodically evaluated by the HR Department to
view the results or impact, and also to adjust to the situation and business development of the Company. Information on the
competence development of AVIA, TKTW, and TKBI employees is further described as follows: [GRI 3-3, 404-2]
AVERAGE EMPLOYEE TRAINING HOURS [GRI 404-1] [POJK F.22]
2023** 2022** 2021*
Average Average Average
Description Total Total Total
Total Training Total Training Total Training
Training Training Training
Employees Hours per Employees Hours per Employees Hours per
Hours Hours Hours
Employee Employee Employee
Average Training Hours by Gender***
Male 6,754 104,540.97 15.48 6,451 44,868 6.96 0 0 0
Female 1,723 23,737.21 13.78 1,625 9,253 5.69 0 0 0
Total 8,477 128,278.18 15.13 8,076 54,121 6.70 0 0 0
Average Training Hours by Position
Deputy
17 107.50 6.32 17 167 9.79 17 364 21.42
Director
Manager 243 6,235.35 25.66 220 8,992 40.87 201 2,744 13.65
Supervisor 655 18,008.25 27.49 590 15,398 26.10 575 3,415 5.94
Staff 7,562 103,927.08 13.74 7,249 29,564 4.08 653 1,881 2.88
Total 8,477 128,278.18 15.13 8,076 54,121 6.70 1,446 8,404 5.81
Notes:
* AVIA and TKTW;
** AVIA, TKTW, and TKBI; and
*** Calculation of average training hours by gender has only been conducted by the Company since 2022.
AVERAGE TRAINING HOURS OF THE BOARD OF COMMISSIONERS AND THE BOARD OF DIRECTORS
OF AVIA
2023 2022 2021
Average Average Average
Position Total Training Total Training Total Training
Participants Hours per Participants Hours per Participants Hours per
Member Member Member
The Board of Commissioners 2 8.75 2 11.75 0 0
The Board of Directors 5 36.70 4 22.50 2 0.90
Total 7 28.71 6 19.42 2 0.64
COST OF IMPLEMENTING EMPLOYEE COMPETENCE DEVELOPMENT
2023** 2022** 1,137.02 Million Rupiah
2,686.95 Million Rupiah 2021* 1,050.60 Million Rupiah
Notes:
* AVIA and TKTW; and
** AVIA, TKTW, and TKBI.
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Performance Evaluation
To ensure the quality of human resources, the Company conducts an annual Employee Performance Evaluation process.
Performance evaluation focuses on performance achievement, work process, attitude, and leadership. In addition, the Company
also conducts competence assessments for all personnel to ensure that all employees possess the relevant skills and expertise.
Performance evaluations are conducted for all employees in accordance with their skills and positions. We are committed to
conducting performance evaluations for all employees to ensure that the Company’s operational performance is more assured
and professional. The performance evaluation of outsourced employees is fully managed by the partner company overseeing
such employees but still with reference to the standards we have stipulated.
The results of the Performance Evaluation serve as a reference for the employee’s career development. The Company
provides equal opportunities in career paths to employees such as promotions, transfers, and job rotations. To ensure that
all departments are aligned with the Company’s objectives, Key Performance Indicators are prepared in accordance with the
Business Plan Strategy that must be achieved annually. All of AVIA, TKTW, and TKBI employees have received assessments of
their performance throughout 2023. [GRI 404-3]
In 2023, we also measured the potential and performance of our employees through the 9 Grid Box Method approach,
aimed at obtaining information on the mapping of employee categories, i.e., the “talent” employees for their excellent
performance, the employees who are deemed to have potential but whose performance is not notable, and the employees to
be terminated due to underperformance.
Information on the types of employee performance evaluations conducted by the Company is described as follows:
TYPES OF EMPLOYEE PERFORMANCE EVALUATION
COMPETENCE MATRIX PERFORMANCE APPRAISAL ASSESSMENT
The process of measuring technical The process of measuring The process of measuring potential
competence fulfillment to support competence fulfillment to support job is conducted periodically using
technical job functions. functions, including performance assessment tools as a consideration
achievements, leadership assessment, for granting promotion.
and work ethic.
This method also allows us to obtain sufficient information about employees’ talents and potential, so that the mapping results
may function as a consideration for the Company to provide a better career development path to the following stages.
We also reward employees who achieve the best scores in their annual performance appraisals. We hope that this will trigger the
enthusiasm of other employees to continue enhancing their abilities and performance, in order to improve their performance
assessment in the following years and have the opportunity to receive awards from the Company.
Retirement Program [404-2]
The retirement age for AVIA employees is 57 years for staff and 65 years for employees with positions above supervisor.
Meanwhile, for TKTW and TKBI employees, the retirement age for all employees is 57 years old.
We uphold the normative rights of employees as stipulated in labor regulations in Indonesia, including pension rights. We
administer a contributory pension plan for permanent employees managed by BPJS Employment. The employees contribute
1% and the Company contributes 2% of the employee’s basic salary to meet the required amount. In 2023, the amount of
contributions paid to such pension funds institutions amounted to IDR3.37 billion, an increase of 6.32% compared to the
previous year.
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Remuneration
The Company provides appreciation to the employees, one of which is in the form of remuneration. Remuneration provided
by the Company, whether in basic salary or allowances, is given at a competitive value to attract and retain the Company’s
top talents. In determining the amount of basic salary and various other compensation received by employees, we refer to
applicable laws and regulations, conduct internal evaluations related to the alignment of remuneration, review the results of
employee performance appraisals, and consider the position level. We maintain equal and fair remuneration for employees,
which includes non-discriminatory practices on the amount of remuneration based on gender, ethnicity, religion, and race.
The ratio of remuneration received by male and female employees is one-to-one (1:1). This means that there is no wage gap
for employees with the same position because the wage level is adjusted based on the position structure. The management
supervises the implementation of the policy on a regular basis to ensure that there are no violations. The supervision is carried
out by the Nomination and Remuneration Committee. Likewise, for the Board of Commissioners and the Board of Directors,
the remuneration provided is equal between men and women, in accordance with the achievement of predetermined KPIs.
[GRI 3-3, 202-1]
In providing the amount of basic salary, we always consider the provisions of the Regional Minimum Wage (“RMW”) determined
by the local government in each operational area. Similarly, the basic salary for contracted employees is above the RMW. This is
a form of our compliance with government regulations related to remuneration. Information regarding the comparison of the
lowest employee salaries with RMW is described as follows:
COMPARISON OF AVIA EMPLOYEE WAGES OF THE LOWEST LEVEL TO THE REGIONAL MINIMUM
WAGE [POJK F.20]
Lowest Wage of Regional The Ratio of the Lowest Wage of Permanent
Operational
Permanent Employee Minimum Wage Employees To Regional Minimum Wage [GRI 202-1]
Area
(IDR) (IDR) (%)
Surabaya 4,800,000 4,525,479 106.07
Sidoarjo 4,600,000 4,518,581 101.80
Serang 4,650,000 4,492,961 103.50
Comparison of Salaries of Male and Female Employees at the Same Level
of Position [GRI 405-2] 1:1
The commitment to equal remuneration between men and women, as well as compliance with the RMW has also been
realized in TKTW and TKBI. We ensure that the average ratio of the lowest wages of TKTW and TKBI employees to the minimum
wage is above 100%.
In addition to fulfilling obligations to employees, the Company also rewards employees of certain levels, in the form of annual
bonuses, as a form of appreciation for the performance that they have produced. We also provide our employees with other
benefits to support their needs. Information on the benefits received by employees is described as follows:
BENEFITS RECEIVED BY EMPLOYEES OF THE COMPANY BASED ON EMPLOYMENT STATUS
[GRI 401-2]
Permanent Employees Contracted Employees
Type of Benefits
Male Female Male Female
Basic Salary Yes Yes Yes Yes
Healthcare Social Security Yes Yes Yes Yes
Employment Social Security Yes Yes Yes Yes
Religious Holiday Allowance Yes Yes Yes Yes
Annual Incentive* Yes Yes No No
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Permanent Employees Contracted Employees
Type of Benefits
Male Female Male Female
Meal Allowance and Transport Yes Yes No No
Overtime Pay* and Night Shift* Yes Yes Yes Yes
Insurance* Yes Yes No No
Notes:
*Only valid for employees of certain levels.
Annual Total Compensation Ratio [GRI 2-21]
The Company’s annual total compensation ratio is an indicator used to compare the highest remuneration received by
employees with the average remuneration received by employees. The Company is mindful of this ratio and ensures that
compensation is always proportionate to the Company’s performance and fairly reflects their contribution to the achievement
of the Company’s long-term business objectives. The Company also observes compliance with prevailing laws and regulations
in determining compensation ratios to ensure transparency and accountability in the Company’s overall management.
In 2023, the ratio of the highest annual remuneration received by employees to the average remuneration of employees was
16.79 times with an increase in ratio of 0 times.
Policy against Child Labor and Forced Labor [GRI 408-1, 409-1] [POJK F.19]
The Company is committed to complying with all provisions relating to employment, including the age of employees. Therefore,
we do not employ minors. The minimum age requirement for prospective employees of the Company is 18 years old. Until the
end of 2023, no child laborers were working in the Company, both in the Company’s operational environment and its supply
chain. [GRI 3-3, 408-1]
In addition, the entire process of employee recruitment, promotion, and transfer is always accompanied by agreement from
both parties. This is important to ensure that there is no coercion in the establishment of working relationships between
employees and the Company. The Company has a policy of prohibiting forced labour, i.e., any work or service to which a
person is compelled under threat of punishment. This has been implemented through the Forced Labor Prevention SOP
(AA-HRD-SOP-34). Based on this commitment, up until the end of 2023, no workers were forced to work at the Company, both
in the Company’s operational environment as well as its supply chain. [GRI 3-3, 409-1] [POJK F.19]
Freedom of Assembly and Association [GRI 407-1]
The Company strives to create a healthy and harmonious relationship with all employees. A realization of this commitment
is giving employees permission to participate in labor unions. Employee participation in the union is the full authority of the
employees concerned. The Company does not implement any policy prohibiting or preventing employees from participating
in labor unions. As of the end of 2023, the number of AVIA permanent employees who are members of labor unions reached
415 people in the SPI Union of PT Avia Avian Tbk Large Family Association which was registered on March 18, 2008 and
52 people in the PB.GB.IK Union. Sarbumusi PT Avia Avian Tbk which was registered with the relevant agencies on
March 10, 2008, representing 76.55% of the total employees of AVIA. [GRI 2-30, 3-3, 407-1]
We have accommodated the labor unions within AVIA to conduct meetings to communicate between management and
employees. This process has been carried out periodically every 6 months. In 2023, matters of discussion included support for
organized sports activities, such as badminton, table tennis, gymnastics, and futsal.
Meanwhile, the elements that deliberate the rights and obligations between the Company and employees have been contained
in the Company Regulations. All employees of the Company have known and are bound by the Company’s Regulations.
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Operating Hours of the Company
The Company’s operational hours are in accordance with the operational hours policy, where AVIA adopts a working time
of 8 hours per day and 5 days per week or 40 hours per week and for TKTW and TKBI, the working time for employees in the
office administration section is 8 hours per day and 5 days per week or 40 hours per week and the operational section in each
branch adopts a working time of 7 hours a day for Monday-Friday and 5 hours for Saturday, bringing the total to 40 hours per
week. With these working hours, AVIA employees have 2 days of rest per week, while TKTW and TKBI employees for the office
administration section have 2 days of rest per week and for the operational section have 1 day of rest per week. Each employee
is also entitled to 12 days of leave per year.
Meanwhile, in certain work units and employee levels, AVIA implements a shift work system, whose arrangements are
adjusted to work conditions. With this arrangement, if there is excess working time, it will be calculated as overtime work
which compensation and benefits are in accordance with labor regulations regarding overtime. In addition, we also provide
opportunities for employees to rest at certain hours. [GRI 409-1] [POJK F.19]
Minimum Notification regarding Changes in the Work Environment [GRI 402-1]
In an effort to create harmonious industrial relations between the Company and employees, we always build and maintain
effective communication. With regard to highly significant operational changes, such as closure, expansion, merger, new
opening, outsourcing of operations, restructuring, or sale of all or part of the organization that may impact the employees,
particularly mass termination of employment, the Company always complies with the prevailing laws and regulations, such
as Government Regulation No. 35 of 2021 on Fixed-Term Employment Agreement, Outsourcing, Working Time and Rest Time,
and Termination of Employment. [GRI 3-3]
Maternity Leave [GRI 401-2, 401-3]
The Company respects the reproductive rights of our employees, both for female employees who are expecting and preparing
for delivery as well as male employees who accompany their spouses during labor. In accordance with applicable laws and
regulations, we provide female employees with the right to maternity leave for 90 calendar days for labor preparation and
postpartum recovery, and provide dispensation for male employees to accompany their spouses for 2 consecutive working
days. This policy is a form of the Company’s commitment to supporting the involvement of both parents in balanced childcare
and supporting the fulfillment of employees’ mental and physical health by providing time for recovery. Throughout 2023,
67 AVIA, TKTW, and TKBI employees (excluding outsourced employees) applied for maternity leave and 63 male employees
applied for dispensation. Of these, 27 or 40.30% of the female employees have returned to work in the reporting year and
the rest will return in the coming year, at the end of the leave period. As for the male employees, all of them have returned
to work in the reporting period. Further information is described as follows:
TOTAL EMPLOYEES WHO TOOK DISPENSATION/MATERNITY LEAVE [GRI 401-3]
2023** 2022** 2021*
Description
Male % Female % Total Male % Female % Total Male % Female % Total
Employees entitled to
63 48.46 67 51.54 130 26 52.00 24 48.00 50 44 72.13 17 27.87 61
dispensation/maternity leave
Employees exercising
63 48.46 67 51.54 130 26 52.00 24 48.00 50 44 72.13 17 27.87 61
dispensation/maternity leave
Employees returning to work
during the reporting period
63 70.00 27 30.00 90 26 59.09 18 40.91 44 44 75.86 14 24.14 58
following their dispensation/
maternity leave
Employees returning to work
following their dispensation/
63 70.00 27 30.00 90 26 59.09 18 40.91 44 44 75.86 14 24.14 58
maternity leave, who are still
employed 12 months thereafter
Notes:
* AVIA and TKTW; and
** AVIA, TKTW, and TKBI.
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Employment Disputes and Complaints
Employees may submit employment complaints to their supervisor, through the complaint form they can access 24/7, or
by filling in the suggestion box provided at each plant as stipulated in the Complaint Management SOP (AA-HRD-SOP-28).
The Company warrants the right of all employees to submit complaints without threats or intimidation. The settlement of
complaints is facilitated by the Human Resource & General Affair (“HRGA”) Department by appointing a Complaints Team
that will take further action to find solutions to the complaints, including escalation to the Bipartite Cooperation Institution if
necessary. As a proactive measure, the Company also conducts a yearly employee complaint survey.
Anti-Harassment Policy
We recognize that there is a risk of discrimination, harassment, and sexual violence against all employees, both within our
Company and at our suppliers. To prevent and protect all employees from harassment, we impose strict sanctions on anyone
found guilty of harassment. The Company also builds a culture of mutual respect and cooperation. This policy applies to
all individuals in the company, to protect both male and female employees within the Company, as well as to protect all
employees from unwanted treatment and to report incidents related to such harassment. Anyone found to have committed
serious harassment will be dismissed, and the same applies to representatives of suppliers and partners.
Reports of harassment can be submitted through the Company’s complaint box or survey, as well as the Company’s
Whistleblowing System. Each report will be verified and followed up professionally by the Internal Audit Unit and Complaints
Team. Regarding report submission, the Company also guarantees the confidentiality of the reporting party and always
provides support or assistance for victims. In the last 3 years, the Company has not received any reports related to harassment
that occurred in the Company’s work environment.
Occupational Health and Safety
Management
In line with fair and responsible labor management, we constantly prioritize efforts to create a decent, safe and healthy work
environment in accordance with the principles of Occupational Health and Safety (“OHS”) to achieve the target of zero accidents.
Therefore, we continue to foster OHS culture through the implementation of policies, procedures, and safety standards in all of
the Company’s work areas. In addition, we also fulfill the rights of all employees related to OHS, including the right to obtain all
information and explanations on occupational hazards and how to tackle them, the right to obtain OHS facilities, and the right
to participate in OHS activities in the workplace. The OHS management that we consistently prioritize allows all employees to
work optimally without worrying about unwanted things, such as occupational illnesses and work accidents, whether in the
mild, moderate, severe, let alone fatal categories. For us, any incident of work accidents or occupational illnesses in any form
must be prevented. In addition to potentially reducing work productivity, such incidents can cause moral and material losses.
[GRI 3-3] [POJK F.21]
Occupational Safety and Health Management System [GRI 403-1, 403-4, 403-8]
As a guide to the commitment and direction of implementing the Occupational Safety and Health Management System
(“OHSMS”), the Company established the Company’s Sustainability Policy, specifically the Social, Labor, and Human Rights
Pillars, which reads:
1. Providing safe and healthy working environment conditions to eliminate hazards and reduce OHS (Occupational Health
and Safety) risks;
2. Ensuring proper and regular participatory consultation processes with all stakeholders; and
3. Providing funds and commitment to support the improvement of knowledge, skills, and competence of company
personnel.
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This policy is a manifestation of the Company’s commitment to protect all employees, partners, and visiting guests. The
implementation of OHSMS is always carried out in accordance with international standards, laws and regulations, and relevant
global safety standards. The Company has also developed and implemented SOPs concerning work environment control. In
line with that, we also strive to continuously build an OHS-conscious culture in all lines and production units through briefings,
promotions, socialization, and safety talks that are implemented in daily operations. [GRI 3-3]
The Company’s management also at all times provides the necessary resources to implement OHSMS effectively and
comprehensively. By implementing the Management System and establishing the OHS Organization, we ensure sufficient
competence and resources are available in relation to OHSMS. Evaluation of the effectiveness of OHSMS implementation is
also carried out periodically to ensure that all of the Company’s standards have been implemented properly. In 2023, internal
audit and inspection activities have been carried out in the form of safety patrols and evaluation of OHS and environmental
awareness. In line with that, the Company has also obtained ISO 45001:2018 on Occupational Health and Safety Management
System since 2020, to ensure optimal management of OHSMS in accordance with the standards. [GRI 3-3]
OHSMS Responsibilities
Management of OHSMS implementation in the Company’s area of work is the responsibility of the Director. In its implementation,
the Director is supported by the Occupational Health and Safety Committee (OHSC). More detailed information about the
Company’s OHSMS management structure is described as follows:
Chairman
Robert Christian Tanoko
(Chief Operating Officer)
Deputy Chairman
Iwan Sigit
(Deputy Operational Director)
Secretary
Indra Jaya Kurniawan
(EHS Manager)
EHS Coordinator
Eko Hajar P.
(QAS Manager)
Pump
Emergency Firefighting Health & Chemicals Emission
Floor Warden Security Electrical Operation First Aider
Response Team Environmental Handling Control
Coordinator Coordinator Coordinator & Hydrant Coordinator
Coordinator Coordinator Coordinator Coordinator Coordinator
Coordinator
Hendrik P
Budi Santosa Muchtarom Sahri Indranila David Johan Adry Permana Amir Machmud Maria Nicolas Ainur Rofiq Miftakul Himmah
(Maintenance
(Prod. Manager) (EHS Staff ) (Deco Manager) (QC SPV) (HRGA Manager) (Legal Manager) (Eng. Manager) (Eng. SPV) (Paramedic Staff )
Manager)
We ensure that all OHSC members possess competence and expertise that are relevant to the Company’s needs. This is an
essential priority for us in achieving our target of creating a decent, safe, and healthy working environment with zero fatal
accidents. In carrying out these responsibilities, the OHSC can hold regular quarterly meetings, with the main agenda being
programs on OHS, findings and development of OHSMS, as well as employee participation and consultation of OHS issues in
the current month. The program is implemented across all employee levels, regardless of gender.
Hazard Identification, Risk Assessment, and Investigation [GRI 403-2]
In implementing OHSMS, the Company conducts hazard identifications, risk assessments, and develops action plans to prevent
accidents and occupational diseases based on the risk control hierarchy. The Company has also implemented procedures
for reporting, investigating, and following up on any work accidents to prevent similar incidents from recurring. Significant
hazards in the Company’s activities are occupational hazards associated with materials and processes that include the use of
chemicals in the workplace. Risk hazard identifications and controls are described as follows:
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HAZARDOUS ACTIVITIES [GRI 403-7]
Location Type of Hazard Personal Protective Equipment (PPE)
RDI - Resin • Overheating reaction process; • Boots;
• Hot chemicals; • Safety goggles;
• Water bath/heating mantle; and • Respirator;
• Fire. • Rubber gloves; and
• Work apron.
Polymerization/ Elimination and Control
Esterification • Providing active fire extinguishing system in the form of smoke detector and water sprinkler;
Process • Installing local exhaust;
• Using insulating materials to reduce heat;
• Providing appropriate working facilities, training, and socialization of the Safety Data Sheet (“SDS”) on each
hazardous chemical and controlling its use in accordance with the SDS; and
• Providing workplace chemical storage and handling facilities and emergency equipment.
Location Type of Hazard Personal Protective Equipment (PPE)
Metal Prod - Kerinci • Cut or clamped hands; and • Safety gloves; and
• Struck by falling heavy objects (cutting • Safety goggles.
sheet).
Operating the Elimination and Control
Cutting Machine
Provide an emergency button on each cutting machine.
Location Type of Hazard Personal Protective Equipment (PPE)
Paint Prod- Merapi • Exposure (contact) to chemicals; • PPE special dust mask; and
• Slipping/falling; • Safety goggles.
• Exposure to dust and chemicals; and
• Airborne hazards.
Cleaning
Processing Tanks Elimination and Control
(Work in Confined • Maximizing the dust collector function;
Spaces) • Providing spill control kit (by a minimum of 2 people); and
• Using the gas detector.
Fire Prevention and Control
Potential fire in a paint manufacturing plant is a risk factor that must be eliminated to ensure employee health and safety as well
as the sustainability of the Company’s business. The fire risks may come from product lines, raw materials, liquids, equipment,
electrical currents, and others. To prevent and control these risks, we have implemented several measures as described below:
1. Identifying fire hazards and risks using the HIRADC (Hazard Identification Risk Assessment and Determining Control)
method;
2. Providing active fire protection facilities (fire extinguisher, hydrant, fire alarm system, and sprinkler) based on the mapping
of potential fire hazards analysis in accordance with applicable regulatory standards, as well as passive protection in the
form of evacuation routes and building access;
3. Establishing an Emergency Response Team (“ERT”), i.e., a Workplace Firefighting Unit, in accordance with Minister of
Manpower Regulation No. 186/1999;
4. The ERT conducts fire safety training periodically every 6 months;
5. Conducting periodic testing of electricity, lightning rods, and monitoring utility; and
6. Conducting periodic evaluations by carrying out inspections and audits to eliminate fire risks.
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Health Facilities and Access [GRI 403-3, 403-6]
To anticipate employees’ exposure to occupational illnesses, the Company makes various routine efforts, which include:
Participating the Company’s employees in health insurance, including insurance from the Social Security Organizing
Agency (Badan Penyelenggara Jaminan Sosial or ”BPJS”) in accordance with employment regulations, both the BPJS
Health and BPJS Employment.
Organizing annual medical check-ups that include physical examination, spirometry, thorax, complete urine,
complete blood, and audiometry. In 2023, the Company included all outsourced employees in the medical check-up
programs according to work exposures and risks.
Providing a First Aid (“First Aid”) Station that specifically provides first aid treatment in the event of a workplace
accident or an employee experiencing health problems in the workplace. This First Aid room actively operates during
the company’s manufacturing hours from 07:30 - 16:00 WIB with expert assistance, namely one doctor and one nurse.
Participating employees in private health insurance programs.
Participation in BPJS Health is not only limited to employees, but also
includes enrolling employees’ family members in the National Health
Insurance Program - Healthy Indonesia Card (Jaminan Kesehatan Nasional –
Kartu Indonesia Sehat or “JKN-KIS”) in accordance with the provisions of Law
No. 24 of 2011. In 2023, the program has covered all employees and their
family members.
Building a Culture of Occupational Health and Safety [GRI 403-5]
In order to increase the understanding and awareness of employees, the Company organizes training activities related to OHS
as necessary. Emergency response preparedness training is conducted through firefighting training, every 3 months for light
fire extinguishers (alat pemadam api ringan or “APAR”) and every 6 months for fire hydrants, at both Sidoarjo and Serang plants.
Evacuation drills are held every 6 months to see the employees’ response in the event of a fire or earthquake. In addition,
training on the management of waste and toxic hazardous materials spills is also carried out every 6 months.
In addition to organizing OHS-related training, the Company also carries out other programs in an effort to build
OHS culture, such as regular briefing, 5R training and clean-up, socialization, placement of hazard signs, use of CCTV, and
use of PPE.
Occupational Health and Safety Performance [GRI 403-9, 403-10]
We have implemented OHSMS with consistency and discipline to ensure a safe and proper working environment for all
employees. In addition to optimizing the role of OHSC as a specific organ responsible for OHS management, all employees are
also involved and responsible for their own health and safety, as well as potential accidents in their surroundings. We continue
to strive to record positive OHS performance in achieving zero accident and zero fatality targets. In 2023, the Company
received the zero-accident award from the Governor of East Java for the Company’s achievement in recording zero Lost Time
Injury (“LTI”).
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Maintaining the Growth of the Company’s Personnel
The Total Recordable Injury Rate (“TRIR”) figure for 2023 increased from the previous year due to an increase in road traffic
accidents that occurred in the Subsidiaries, namely TKTW and TKBI. Mitigation efforts undertaken by the Subsidiaries to reduce
accidents are by conducting safety driving socialization and training for all drivers on a regular basis. Nevertheless, neither the
Company nor its Subsidiaries recorded any Number of Fatality. Information on OHS performance data over the past 3 years is
described as follows:
OCCUPATIONAL HEALTH AND SAFETY PERFORMANCE DATA [GRI 403-9, 403-10]
Performance Indicator 2023** 2022** 2021*
Employees who obtained MCU (People) 1,380 1,127 1,166
Total Recordable Injury Rate 2.16 2.01 2.40
Number of Fatality 0 0 0
Fatal Incident Rate 0 0 0
Total Recordable Illness Rate 0 0 0.10
Total Recordable Incident Frequency Rate 2.69 1.74*** 2.30
Number of Accident (People) 46 34 42
Total Manhours Worked (Hours) 16,871,767 14,959,320 16,428,547
INVESTMENT IN OCCUPATIONAL HEALTH AND SAFETY
2023 2022 2021
886 841 4,399
Million Rupiah Million Rupiah Million Rupiah
Personal Protective Equipments : 886 657 989
Management of Covid-19** : 0 184 3,410
Notes:
* The Company and TKTW;
** The Company, TKTW, and TKBI; and
*** Data restated.
Complaints on Labor and OHS Issues [GRI 2-25]
Complaints on issues related to employment and occupational health and safety can be submitted through a ballot box or
a complaint survey periodically conducted by the Company. Every incoming complaint will be processed and followed up
properly and professionally. In addition, labor unions within AVIA also serve as a medium for employees to submit complaints
related to labor and OHS, which will be a topic of consultation and negotiation with the Company in regular meetings every
6 months.
During the last 3 years, the Company has not received any reports related to labor issues and occupational health and safety.
[GRI 2-16]
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Community Social Development “Our social community development programs, entitled Avian Brands Peduli, are a platform for us to positively contribute to fostering the growth, independence, and welfare of the surrounding communities and environment. For us, independent communities and thriving environments are some of the most important parts in measuring the continued success of our performance.” 120 PT Avia Avian Tbk - 2023 Sustainability Report
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OUR ACHIEVEMENT [GRI 3-3]
Implementation of the Company’s The Petik Laut program,
The Company’s support
CSR programs increased by one of the in improving education quality has
Company’s Flagship
262.96% CSR Programs
in the environmental sector, has
been realized through the
Avian Berbagi Ilmu
program, organized in
to a total of
been conducted in 2 schools and 1 university. In
98 addition, the Company also
11
programs, awarded scholarships for employees’
compared to the previous year’s children and provided internship
27 programs. different cities in Indonesia. opportunities.
In line with the Sustainability Policy, the Company always respects the rights of local communities,
including indigenous and traditional communities, resulting in zero violations of the rights of
indigenous or local communities around the Company’s operational areas throughout 2023.
Community Development Strategy [GRI 413-2]
The Company understands that its presence in society must provide value for the welfare of the surrounding communities.
Therefore, the Company actively contributes to improving and empowering communities to tackle various social, economic,
and environmental issues. The Company’s community development and social responsibility activities are not limited to the
communities surrounding our plants, but extend to various regions in Indonesia.
Our operational activities, especially paint manufacturing at the plants, carry the risk of adverse impacts on the activities and
lives of local communities. It is undeniable that if our operations are not carried out in accordance with applicable regulations
and sustainable practices, they will potentially cause negative impacts on the community, such as noise, pollution, and so on.
Therefore, we always comply with all applicable rules and regulations as well as carry out business activities that emphasize
accomplishing sustainable performance. [GRI 3-3]
We realize our accomplishment in sustainable performance by aligning economic, environmental, social and governance
performances. Therefore, we always strive to conduct business activities that not only generate positive economic performance,
but also provide extensive benefits and bring added value to local communities. We proactively strive to improve the welfare
of the surrounding communities to ensure that they have a prosperous and sustainable future. We realize such commitment
by providing job opportunities for the community, product innovations that benefit Indonesian consumers, and undertaking
Corporate Social Responsibility (“CSR”). [GRI 3-3]
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Community Social Development
The CSR programs we implement are aligned with the needs of the surrounding communities, to ensure more meaningful
and positive impacts. Moreover, through the implementation of sustainable CSR programs, the Company also supports the
achievement of Sustainable Development Goals that are also part of the national and global development agenda. The
Company is committed to improving the standard of living by encouraging businesses that positively impact the community.
This is channeled through a framework of CSR activities entitled ‘Avian Brands Peduli’. Avian Brands Peduli was established as a
form of the Company’s concern for the people of Indonesia by undertaking social responsibility in education, environment,
and disaster response. [GRI 3-3]
The implementation of the CSR program in the Company is conducted by the CSR Committee which is directly responsible to
the Board of Directors. Further information on the management structure of the Avian Brands Peduli program is described as
follows:
ORGANIZATIONAL STRUCTURE OF CSR COMMITTEE
Vice President Director
Deputy Marketing Director
Marketing Manager
Marketing Communications & CSR SPV
Marketing Communications & CSR Staff
We ensure that the people in charge of managing the Company’s CSR activities possess competence and expertise relevant to
the Company’s needs. This is an important priority for us because, in addition to the responsibility of managing Avian Brands
Peduli programs, the CSR Committee is also responsible for ensuring the effectiveness of Avian Brands Peduli programs, in line
with the established targets to improve the alignment of Avian Brands Peduli programs with the needs of the surrounding
communities. [GRI 3-3]
CSR PILLAR AVIAN BRANDS PEDULI
Education Environment Disaster Response
The Company believes The Company realizes
that higher quality Human that the potential development The Company continues
Resources (“HR”) would of the environment is directly to assist those in need according to
result in a competent and highly proportional to the opportunity to the requirements and conditions of
competitive community. minimize environmental each incident.
Therefore, the following three impacts. We believe that these
points are the Company’s would be able to bring the
key foundation in improving the community to a better standard
quality of HR. of living.
Improvement on the Environment
Quality of Education
Tourism Development Disaster Mitigation
Scholarship
Minimizing Impacts on the Blood Donation
Training and Skills
Environment
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Supporting the Community [GRI 413-2]
Pillars of Education [GRI 413-1] [POJK F.25]
Throughout 2023, the Company carried out various CSR programs related to supporting the development of quality human resources in
order to create competent communities with high competitiveness. Some of these programs are described as follows:
Painting of the Sukma Bangsa School, Lhokseumawe
The Company provided assistance to Sukma Bangsa School, Lhokseumawe, which was established by Media Group as a humanitarian
response in the wake of the 2004 earthquake and tsunami in Aceh. We provided the school, which consists of an elementary school, junior
high school, and senior high school, with assistance in the form of wood and metal paint, interior paint, exterior paint, roof and zinc paint,
and thinner with an allocated fund of IDR164.24 million.
Providing Paint Assistance to Islamic Boarding School Dormitories and Study Rooms of Madrasah Darussalam, Pontianak
The Company provided assistance to the Islamic Boarding School Dormitories and Study Rooms of Madrasah Darussalam, Pontianak,
which were established as an institution to improve the education of children from rural families, who primarily work as manual laborers
and farmers, and are not concerned with education. Therefore, we were motivated to help by donating wall paint, base paint, wood and
metal paint, waterproofing, thinner, and paint brushes with an allocated fund of IDR13.76 million.
Painting of the Sidomulyo Special Needs School in Collaboration with the Indonesian Red Cross (Palang Merah Indonesia or
“PMI”), Lampung
The Company provided assistance to Sidomulyo Special Needs School, Lampung. The activity, jointly organized with the Indonesian Red
Cross, provided assistance in wall paint and thinner with an allocated fund of IDR17.07 million.
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Community Social Development
Pillars of Education [GRI 413-1] [POJK F.25]
Painting the Walls of Kelapa Kampit Junior High School 3, East Belitung
The Company provided assistance to Kelapa Kampit Junior High School 3, East Belitung, in improving the quality of its facilities, to
facilitate the teaching and learning process for its students and teaching staff. We provided assistance in the form of 100 kg of Avitex Gold
exterior and interior wall paint, 84 kg of Avitex Alkali Resisting Primer, and other supporting painting supplies with an allocated fund of
IDR5.37 million.
Providing Paint for Painting of Surabaya Vocational High School 13
The Company provided assistance to the Surabaya Vocational High School 13 in order to revitalize and enhance the appearance
of the school’s aging buildings. We provided assistance in the form of 10 pails of Avitex Eksterior paint with an allocated fund of
IDR10.99 million.
Scholarship for Excelling Employees’ Children, in the framework of AVIA Anniversary
The Company granted scholarships to 18 excelling children of our employees on November 11, 2023, coinciding with the main event
of Avian’s 45th Anniversary. Not only as a form of appreciation, the scholarships were also a manifestation of the Company’s concern to
support Indonesian educational progress. Education is a pillar of the country’s advancement - not only does it produce qualified human
resources that can compete globally, but it can also alleviate poverty and improve the welfare of society. Through the scholarships, we
hope that the employees’ children are increasingly motivated to learn and improve their academic performance.
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Pillars of Education [GRI 413-1] [POJK F.25]
Avian Berbagi Ilmu at Buduran Vocational High School 1, Sidoarjo
On May 26, 2023, the Company conducted CSR in Education under the theme ‘Avian Berbagi Ilmu’ by organizing Public Speaking and
Workforce Preparation Training for students of Buduran Vocational High School 1, Sidoarjo. We chose this vocational school because, in
addition to its students preparing for the workforce, the school’s location is the nearest to the Company, therefore the benefits we provide
could have a direct impact on our surrounding community.
Avian Berbagi Ilmu at Surabaya Vocational School 13
The Company organized training on Industrial Workforce Preparation for students of Surabaya Vocational School 13. This event
demonstrates that the Avian Berbagi Ilmu program is not only aimed at communities around our operational areas, but also extends to
other regions.
Avian Berbagi Ilmu at Widya Mandala Surabaya University
The Company organized educational training on workforce preparation for students of Widya Mandala Surabaya University. This training
was conducted online.
Internship Program
In addition to conducting training, the Company also supports the improvement of education quality through internship programs for
vocational school and university students. Throughout 2023, the Company accepted 26 interns with an allocated fund of IDR108.88 million.
Pillars of Environment [GRI 413-1] [POJK F.25]
Throughout 2023, the Company carried out various CSR programs related to supporting the improvement of environmental potential, in
order to minimize environmental impacts and develop tourism in local communities. Some of these programs are described as follows:
Avian Brands Peduli Supporting the Annual Petik Laut Event with Coastal Communities in Indonesia
The Company acknowledges the crucial role of the fishing communities in Indonesia - a country that is predominantly comprised of waters.
Therefore, the Petik Laut event or painting of fishing boats are some of the priority programs that we organize every year. Furthermore,
Petik Laut is also a traditional ceremony that has become a cultural heritage and holds great value among coastal communities.
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Community Social Development
Pillars of Environment [GRI 413-1] [POJK F.25]
Throughout 2023, we supported the Petik Laut events in various regions in Indonesia as described below:
• Petik Laut at Pelabuhan Ratu, Sukabumi
Pelabuhan Ratu in Sukabumi is famous for its coastal tourism. Communities living around Pelabuhan Ratu are mostly fishermen who
celebrate National Fishermen’s Day every year. At the event, we supported the painting of 100 fishing boats.
“ Thank you Avian Brands for the CSR activity
conducted in Pelabuhan Ratu today. We
fishermen are happy to have our boats painted
new again”, said a fisherman.
• Petik Laut at Pagatan Beach Festival, Batulicin
Mappanre Ri’tasie Festival (Pesta Laut Mappanre Ri’tasie) is recognized by the people of Tanah Bumbu as a traditional Bugis festival
passed down from generation to generation, as a form of gratitude for the bountiful harvest of the sea. The Festival is held every April
at Pagatan Beach, Tanah Bumbu Regency, South Kalimantan. At the event, we supported the painting of 100 fishing boats.
“ On behalf of the people of Tanah Bumbu
Regency, I would like to thank Avian Brands
for the assistance in painting our villagers’
boats to celebrate the Mappanre Ri’tasie
Festival. Hopefully, with this celebration,
the people of Tanah Bumbu will continue to
receive abundant blessings and prosperity”,
said Hasanuddin AM, a member of Tanah
Bumbu Regency regional parliament.
• Petik Laut at Pugerkulon Village, Jember
Pugerkulon Village in Jember is a coastal village where residents annually organize Petik Laut in the month of Muharram. Petik Laut at
Pugerkulon Village is organized by the local Village Government, inviting all residents to participate and celebrate the event. Here, we
provided support for the painting of 100 fishing boats.
“ On behalf of the fishermen here, I would like
to thank Avian Brands for their participation
in celebrating the Petik Laut event in Puger
Kulon. Praise the Lord, thanks to the support
from Avian Brands, my friends feel proud to
have been able to paint our boats new again”,
said a fisherman representative.
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Pillars of Environment [GRI 413-1] [POJK F.25]
• Petik Laut at Segara Village, Bekasi
Segara Village in Bekasi organizes the Petik Lauk event as a form of gratitude for the local fishermen. As a manifestation of our
commitment to the welfare of the fishing community, we managed to restore 300 fishing boats and the bridge of love to look new
again.
“ On behalf of the fishermen, I would like
to thank Avian Brands for distributing the
paint to turn our dull boats back into color.
Avian Brands paint has brighter colors and
sticks better than other paint products”, said
Riyanto, a fisherman.
• Petik Laut at Grajagan, Banyuwangi
Petik Laut is routinely held by fishing communities all over Java Island, including in Grajagan Village. The main purpose of this event is to
show gratitude to God Almighty for the fortunes given through the sea. In the event, we supported the painting of 100 fishing boats.
“ We, as the fishermen of Grajagan and the
organizing committee of the 2023 Petik Laut,
hope that Avian Brands can provide more
support in the future compared to this year
and the previous years”, said the treasurer
of the fishermen of Grajagan Village, Faisol
Hermansyah.
• Petik Laut of Pangandaran Coastal Communities, Tasikmalaya
Pangandaran is a favorite tourist destination for the people of East Priangan, West Java. Therefore, we came to provide support for
the economic sustainability of the coastal communities, especially fishermen in the Pangandaran area, to ensure that the economic
activities in this area continue to function while also attracting more tourists. Coinciding with the Hajat Laut, a procession of gratitude
held once a year in the month of Suro, we provided support for the painting of 50 fishing boats.
“ I am grateful and thankful to Avian Brands for
helping the people of the Pangandaran area,
and sponsoring the repainting of our fishing
boats”, said Endi, Head of Pangandaran Kulon
Coastal Fishermen.
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Community Social Development
Pillars of Environment [GRI 413-1] [POJK F.25]
• Petik Laut at Dermaga Kolo Pemecah Ombak, Bima
Kolo Beach is a prominent tourist attraction in the West Nusa Tenggara region, offering beautiful seascapes, underwater charms, and
clean air that provides a breezy coastal atmosphere. As a form of our contribution and concern for the potential of nature and the
communities around Kolo Beach, we supported the Petik Laut event by painting 100 fishing boats.
• Petik Laut and Pesona Selat Lembeh Festival, Manado
We provided support to the Petik Laut and Pesona Selat Lembeh event in Manado. It is a folk festival that not only showcases the beauty
of nature and the charm of marine life, but also plays a crucial role as the driving force of the region’s economy. We were there to support
the festival by providing wall paint, wood and metal paint, thinner, and other supporting equipment with a value of IDR83.67 million.
• Petik Laut at Pagagan Village, Pamekasan
We provided support for the Petik Laut event in Pamekasan entitled Warna-Warni Pengecatan Perahu Nelayan by providing paint,
thinner, and other supporting equipment with a value of IDR38.45 million.
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Pillars of Environment [GRI 413-1] [POJK F.25]
• Petik Laut at Lela Village, Maumere
We provided support for the Petik Laut event in Maumere by providing paint, thinner, and other supporting equipment with a value of
IDR64.01 million.
• Petik Laut at Lampu Satu Beach, Merauke
We provided support for the Petik Laut event in Merauke by providing paint, thinner, and other supporting equipment with a value of
IDR48.50 million.
Painting of Kampung Nelayan Maju and Mural Competition for 2023 Walikota Cup, Pekalongan
In conjunction with the 2023 Walikota Cup event in Pekalongan, the Company also participated by painting the Kampung Nelayan Maju
and the Mural Competition. To support the event, we provided support of 80 kg of exterior paint, 87 kg of Avitex Alkali Resisting Primer,
and 250 kg of Avitex Gold exterior and interior multifunctional paint. This program is a form of our concern for the improvement of public
facilities and social activities.
” For our murals, we use Avian paint, as it is
very easy to use for mural painting. The light
color can cover the old color”, said Ateng, the
runner-up of the Mural Competition.
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Community Social Development
Pillars of Environment [GRI 413-1] [POJK F.25]
Paint Support for 4 Locations with Habitat for Humanity Indonesia
Commemorating the Sumpah Pemuda Day (Youth Pledge Day) on October 28, 2023, the Company took part in CSR activities with Habitat
for Humanity Indonesia, namely the construction of residential houses and Early Childhood Education (Pendidikan Anak Usia Dini or
“PAUD”) facilities under the theme “28UILD”. In this activity, carried out simultaneously in 4 locations, namely Mauk, Yogyakarta, Gresik,
and Batam, we donated wall paint as well as wood and metal paint to coat the houses and PAUD buildings.
The total paint assistance we provided amounted to 291 gallons of Avitex Gold Wall Paint, 345 cans of Avian Cling Synthetic, and 55 Avian
Thinner B Asli with an allocated fund of IDR82.83 million. The 28UILD program is an annual Habitat for Humanity event, which this year
involved 529 volunteers across 4 locations to build and paint 75 houses, 14 schools including PAUD, and 5 public facilities.
“ I am a fisherman with no steady income. I had
never imagined that I could build a decent
house for my family. Therefore, I am very
grateful to the volunteers and donors who
have built my house”, said Didik, a resident.
Painting of the Pilgrimage Site of the Statue of Mary, Lady of All Nations, Maumere
The Company supported the Indonesian communities’ religious activities through the CSR program of painting a place of worship and
pilgrimage, of the statue of the Mother Mary in Maumere, East Nusa Tenggara. We provided assistance in the form of 75 kg of Avitex Eksterior
along with painting equipment with an allocated fund of IDR3.41 million. The painting process was done by volunteers from the local area.
Painting of the Amir Hamzah Lambunga Grand Mosque, Maumere
Amir Hamzah Lambunga Grand Mosque is one of the largest mosques on the island of Adonara, Maumere, which is currently under
construction. To support the construction process, we provided assistance in the form of exterior wall paint and thinner with an allocated
fund of IDR17.13 million
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Pillars of Environment [GRI 413-1] [POJK F.25]
Painting of the Lumajang Kodim Building, Probolinggo
The Company consistently maintains good relations with all stakeholders, including government officials. On this occasion, we also
supported the building repair and renovation program at Makodim 0821 and Koramil Jajaran Kodim 0821 Lumajang. We provided
assistance in the form of wall paint, with a value of IDR27.43 million.
Painting of the Water Ski and Wakeboard Venues, Special Capital Region (Daerah Khusus Istimewa or DKI) Jakarta
The Company supported the improvement of the quality of facilities and infrastructure of Water Ski and Wakeboard venues, one of the
sports venues in DKI Jakarta. We provided assistance in the form of exterior wall paint, base paint, wood and metal paint, and boat paint
with a value of IDR49.94 million.
Providing Paint Support for Mural Competition at Culinary Festival with Cleo, Bandung
Cleo organized the Mural Competition program as one of the activities in the Cleo Culinary Festival. This competition is intended specifically
for teenagers and adults as a platform to express themselves through mural art. To support the competition and as an effort to encourage
creativity, we provided support in the form of wall paint for the murals, as well as prizes for the winners, with a value of IDR17.31 million.
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Pillars of Environment [GRI 413-1] [POJK F.25]
Providing Paint Assistance for Homes of Veterans and Elderly Dhuafa, South Bandung
The Company, in collaboration with JBR Niza Bandung, supported the renovation of Veterans’ homes by donating colorful paints. In
addition, we also donated paint to enhance the homes of the elderly Dhuafa in Bandung on Indonesian Independence Day. In this
program, we provided assistance in the form of 84 kg of Avitex Alkali Resisting Primer base paint, 200 kg of Cat Tembok Avitex Gold, 17 kg
of Avian Cling Synthetic, 4 liters of thinner, and painting equipment with a value of IDR9.96 million.
Community Empowerment for Utilization of Economically Valuable Waste, Wadungasih Village Sidoarjo
The Company organized community empowerment programs that not only reduced the existing waste, but also utilized the
waste to be managed to provide added value and boost the income and living standards of the community around Wadungasih
Village. The aid, which amounted to IDR117.72 million, was used to grant 6,000 catfish seeds along with their feeds and ponds,
urban farming land along with fertilizer and vegetable seeds, 30 segregated rubbish bins, 4 aerobic composters, 1 leaf shredder,
and 60 kg of maggots including provision of bio pond production and cages. In addition, the Company also provided training and
support for the community, which later resulted in a new waste management group emerging in Wadungasih Village, known as
the Composter Group.
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Pillars of Environment [GRI 413-1] [POJK F.25]
Paint Support for the Tresna Werda Budi Mulia Nursing Home and Tunas Bangsa Children’s Orphanage, Cipayung
The Company supported the improvement of facilities and infrastructure at Tresna Werda Budi Mulia Nursing Home and Tunas Bangsa
Children’s Orphanage, Cipayung, by donating 500 kg of Avitex Gold wall paint with a value of IDR16.56 million.
Supporting the 2023 River Function Revitalization Program (Sido Resik)
The Company supported the 2023 River Function Revitalization Program (Sido Resik), a priority program of the Sidoarjo Regency
Government. The support was in the form of 350 gallons/1,750 kg of paint and 500 t-shirts, with a value of IDR133.94 million. This CSR
assistance for the Sido Resik Program included 10 villages in Sidoarjo.
Engaging the Community for Planting and Tending of Trees on the slopes of Mount Arjuno, Pasuruan
As part of the Company’s efforts to protect the environment, in 2023, the Company planted and tended to 5,000 trees on the slopes of
Mount Arjuno. In this activity, the Company also engaged several parties, such as farmers, non-governmental organizations, regional
communities, community leaders, youth leaders, forest village community organizations, schools, and state enterprises.
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Community Social Development
Pillars of Environment [GRI 413-1] [POJK F.25]
Painting of the Harapan Bangsa Orphanage with PMI, Lampung
The Company provided assistance to Harapan Bangsa Orphanage, Lampung. In this activity, jointly organized with the Indonesian Red
Cross, the Company provided paint assistance with an allocated fund of IDR32.11 million.
Support to Mural Painting, Solo
In order to encourage creativity in the Indonesian art scene, the Company provided support in the form of paint for murals, totaling 15 kg
of paint with an allocated fund of IDR653.45 thousand. The product provided for the mural was one of the Company’s flagship products,
Avitex Gold - a multifunctional paint product for both exterior and interior use.
Painting of the Nur Al-Wahyu Mosque, Merauke
The Company assisted Nur Al-Wahyu Mosque, Merauke, in supporting their annual social service activities. The Company provided
support in the form of 200 kg of Avitex Eksterior, 9 liters of Avian Cat Kayu dan Besi, 6 kg of Boyo Politur Vernis Waterbased, thinner, and
painting equipment by Homecare with an allocated fund of IDR11.11 million.
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Pillars of Environment [GRI 413-1] [POJK F.25]
Painting of the Chapel of Don Bosco Church, Semarang
The Company assisted the Chapel of Don Bosco Church, Semarang, in enhancing the church’s appearance, from its previous dull and
faded look to a brighter new look. The support provided by the Company was in the form of 15 kg of Avitex Gold, with an allocated fund
of IDR653.45 thousand.
Providing Paint Assistance for Arts Council’s Office, Pamekasan
The Company provided assistance to the Arts Council of Pamekasan in order to enhance the appearance of its office. The support provided
by the Company was in the form of 20 kg of No Drop and 22.50 liter of Avian Cat Kayu dan Besi (Wood and Metal Paint) with an allocated
fund of IDR3.15 million.
Painting of the Al-Maaidah Mosque, Bogor
The Company assisted Al-Maaidah Mosque, Bogor, in enhancing its appearance and improving the comfort of worshipers in performing
their prayers. Al-Maaidah Mosque is one of the local community’s centers of worship. The mosque has 3 floors - the ground floor is used for
community activities in the form of a hall, while the first and second floors are specifically used for praying. The support provided by the
Company was in the form of 900 kg of Avitex Gold and 105 kg of Avitex Alkali Resisting Primer with an allocated fund of IDR36.63 million.
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Pillars of Environment [GRI 413-1] [POJK F.25]
Donating Sacrificial (Kurban) Animals
In addition to concern for the natural environment, the Company also constantly considers the social environment. The Company
implemented this by participating and contributing to the 2023 Eid al-Adha Celebration by donating Sacrificial Animals to 8 locations
around the Sidoarjo Plant operational area, including Binangun Indah Residence, Buduran Police Station, Buduran Koramil, Binangun
Village Mosque, Wadungasih Village Mosque, Binangun Village Musholla, Buduran Junior High School, and Dawuhan Sangon Mosque.
The donation of sacrificial animals amounted to IDR30.50 million for purchasing 9 goats.
Pillars of Disasters Response [GRI 413-1] [POJK F.25]
Motor Pumps Support for Flood Mitigation, Wadungasih
The Company donated motor pumps to mitigate flood in the Wadungasih area. This donation has had an impact on preventing floods in
RW 03, RW 04, and one secondary school in Wadungasih Village, which also happens to be the Company’s main location.
Blood Donation
Throughout 2023, the Company conducted 3 blood donation activities for employees who were willing to donate blood. Blood donation
activities were carried out in March, June, and September, attended by 307 participants with an allocated fund of IDR21.35 million.
2023 Sustainability Report - PT Avia Avian Tbk 137
Page 140
CSR Implementation Cost
TOTAL CSR ACTIVITIES (dalam jutaan Rupiah)
CSR Program 2023 2022 2021
Education 371 447 89
2023 2022 2021
Environment 2,455 1,430 1,006
Disaster Response 55 61 828
98 27 13
Programs Programs Programs Other CSR Activities 0 40 0
Total CSR Cost 2,881 1,978 1,923
Protection of the Rights of Indigenous
Communities
Indigenous communities are a group of populations who inhabit certain geographical areas in accordance with their ancestral
origins. They have a distinctive socio-cultural and value system, sovereignty over their land and natural resources, and regulate
and manage the sustainability of their lives based on customary laws and institutions. The Company’s operational areas are not
located on indigenous communities’ lands or areas. Nevertheless, the Company always respects and values the protection of
the rights of local communities, including community groups with historical origins who have inhabited indigenous territories
for generations, as indicated by the Sustainability Policy which reads:
“Respecting the rights of local communities, including indigenous and traditional
communities.” [GRI 3-3]
In accordance with this commitment, during the reporting period, there were no incidents of violations related to the rights of
indigenous or local communities where the Company operates. [GRI 411-1]
Feedback on Corporate Social Responsibility
Programs [GRI 2-25] [POJK F.24]
We provide access for all stakeholders to report or submit complaints if the CSR program conducted by the Company is in
violation of ethics, integrity, norms, or suspected to involve violations. Reports may also be in the form of complaints from the
general public on operational activities performed by the Company, outside of environmental issues. In this regard, we routinely
visit village officials around the Company’s plant sites to gather reports and aspirations from the surrounding communities.
Any incoming complaint report will be processed and followed up properly and professionally. If necessary, the Company will
hold further face-to-face forums with the relevant parties to determine further the steps to resolve such problems.
All CSR programs carried out by the Company do not have significant adverse impacts on local communities, either actual or
potential. On the contrary, all of our CSR programs have positively impacted the local community. Over the past 3 years, we
have not received any material or significant complaints about CSR program issues. [GRI 2-16, 413-2]
138 PT Avia Avian Tbk - 2023 Sustainability Report
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Community Social Development
Sustainability Report Responsibility
Statement of Members of the Board of Commissioners and the Board of Directors
on the Responsibility for the 2023 Sustainability Report of
PT Avia Avian Tbk
We, the undersigned, hereby declare that all information in the 2023 Sustainability Report of PT Avia Avian Tbk
(the “Company”) has been completely presented and we shall be fully responsible for the correctness of contents
in the Company’s Sustainability Report.
This statement is hereby made in all truthfulness.
Surabaya, March 12, 2024
THE BOARD OF COMMISSIONERS,
Hermanto Tanoko Mohammad Noor Rachman Soejoeti
President Commissioner Independent Commissioner
THE BOARD OF DIRECTORS,
Wijono Tanoko Ruslan Tanoko
President Director Vice President Director
Robert Christian Tanoko Kurnia Hadi Sinanto Angelica Tanisia Jozar
Director Director Director
2023 Sustainability Report - PT Avia Avian Tbk 139
Page 142
Written Verification from Independent Party
[GRI 2-5] [POJK G.1]
This Sustainability Report has not been verified by an assurance service provider. However, the Company warrants that all
information presented in this Sustainability Report are true, accurate, and factual.
140 PT Avia Avian Tbk - 2023 Sustainability Report
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Reader Survey
[POJK G.2]
1. In your opinion, would you recommend this Sustainability Report for your associates or colleagues to read?
1 2 3 4 5 6 7 8 9 10
NOT AT ALL HIGHLY RECOMMENDED
2. Is the presented information sufficient for you to draw a conclusion?
1 2 3 4 5 6 7 8 9 10
NOT AT ALL HIGHLY RECOMMENDED
3. Is the design of this Sustainability Report (layout, infographics, and other design elements) sufficiently enticing and helpful
to read?
1 2 3 4 5 6 7 8 9 10
NOT AT ALL HIGHLY RECOMMENDED
4. Which sustainability topics interest you the most?
...................................................................................................................................................................................................................................................
...................................................................................................................................................................................................................................................
...................................................................................................................................................................................................................................................
5. Your suggestions and input for our next report
• Topic : ..................................................................................................................................................................................................................
• Language : ..................................................................................................................................................................................................................
• Design : ..................................................................................................................................................................................................................
• Data : ..................................................................................................................................................................................................................
6. Your Information
• Name : ..................................................................................................................................................................................................................
• Age : ..................................................................................................................................................................................................................
• Occupation : ..................................................................................................................................................................................................................
7. Identity by Stakeholder Category
1. Customer 5. Business Partner
2. Employee/Employee Organization 6. Mass Media
3. Shareholder 7. Public
4. Government, Regulator, or Legislative 8. Others, please specify ......................................................................
8. Would you like to be contacted regarding our next sustainability information?
Yes Email address:
No ..................................................................................................................................................................................................................
Please send this feedback form to:
PT Avia Avian Tbk
Avian Brands Building
Jl. Ahmad Yani No. 317 corsec@avianbrands.com
Surabaya, 60234, Jawa Timur, Indonesia investor.relations@avianbrands.com
PT Avia Avian Tbk will treat your information as confidential and will not be used for any other purposes.
2023 Sustainability Report - PT Avia Avian Tbk 141
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Response to the Previous Year’s Report
Reader Survey [POJK G.3]
The company did not receive any response from stakeholders following the issuance of the 2022 Sustainability Report.
Thus, there is no specific information hereunder regarding the follow-up actions taken by the Company on responses from
stakeholders in the previous year.
List of GRI Standards Indexes for 2021 –
in Accordance
PT Avia Avian Tbk has reported in accordance with the GRI Standards for the period of
Statement on Utilization January 1 - December 31, 2023.
GRI 1 Utilized GRI 1: Foundation 2021
Disclosure
GRI - Standards Index Page
Title
No.
GENERAL DISCLOSURE
The Organization and Its Reporting Practices
2-1 Organizational Details 28-29; 36
2-2 Entities Included in the Organization’s Sustainability Reporting 1
2-3 Reporting Period, Frequency, and Contact Point 1
2-4 Restatements of Information 1
2-5 External Assurance 1; 140
Activities and Workers
28; 32; 38;
2-6 Activities, Value Chain, and Other Business Relationships
73-74
2-7 Employees 105-106
2-8 Workers Who are Not Employees 106
Governance
2-9 Governance Structure and Composition 57-58
GRI 2:
General 2-10 Nomination and Selection of the Highest Governance Body 59
Disclosures 2021
2-11 Chair of the Highest Governance Body 57; 67
2-12 Role of the Highest Governance Body in Overseeing the Management of Impacts 57; 59
2-13 Delegation of Responsibility for Managing Impacts 59
2-14 Role of the Highest Governance Body in Sustainability Reporting 57
2-15 Conflicts of Interest 67
66; 83; 100;
2-16 Communication of Critical Concerns
119; 138
2-17 Collective Knowledge of the Highest Governance Body 60-61
2-18 Evaluation of the Performance of the Highest Governance Body 59; 63
2-19 Remuneration Policies 59
2-20 Process to Determine Remuneration 59
2-21 Annual Total Compensation Ratio 113
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Disclosure
GRI - Standards Index Page
Title
No.
Strategy, Policies, and Practices
2-22 Statement on Sustainable Development Strategy 22-25
2-23 Policy Commitments 63-66
2-24 Embedding Policy Commitments 5-8
61-63; 83;
2-25 Processes to Remediate Negative Impacts
GRI 2: 100; 119; 138
General
2-26 Mechanisms for Seeking Advice and Raising Concerns 66-67
Disclosures 2021
2-27 Compliance with Laws and Regulations 68
2-28 Membership Associations 21
Stakeholder Engagement
2-29 Approach to Stakeholder Engagement 42-45
2-30 Collective Bargaining Agreements 113
Material Topics
GRI 3: 3-1 Process to Determine Material Topics 46-48
Material Topics 2021 3-2 List of Material Topics 48-52
ECONOMICS TOPICS
201 Economic Performance
GRI 3:
3-3 Management of Material Topics 75
Material Topics 2021
GRI 201:
Economic 201-1 Direct Economic Value Generated and Distributed 76
Performance 2016
202 Market Presence
GRI 3:
3-3 Management of Material Topics 112
Material Topics 2021
GRI 202:
202-1 Ratios of Standard Entry Level Wage by Gender Compared to Local Minimum Wage 112
Market Presence 2016
203 Indirect Economic Impacts
GRI 3:
3-3 Management of Material Topics 78
Material Topics 2021
GRI 203:
Indirect Economic 203-2 Significant Indirect Economic Impacts 73; 78
Impacts 2016
205 Anti-Corruption
GRI 3:
3-3 Management of Material Topics 64
Material Topics 2021
205-1 Operations Assessed for Risks related to Corruption 64
GRI 205:
205-2 Communication and Training about Anti-Corruption Policies and Procedures 64
Anti-Corruption 2016
205-3 Confirmed Incidents of Corruption and Actions Taken 65
207 Tax
GRI 3:
3-3 Management of Material Topics 77
Material Topics 2021
207-1 Approach to Tax 77
GRI 207: 207-2 Tax Governance, Control, and Risk Management 77
Tax 2019 207-3 Stakeholder Engagement and Management of Concerns Related to Tax 77
207-4 Country-by-Country Reporting 77
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Disclosure
GRI - Standards Index Page
Title
No.
ENVIRONMENTAL TOPICS
301 Materials
GRI 3:
3-3 Management of Material Topics 89
Material Topics 2021
GRI 301: 301-1 Materials Used by Weight or Volume 90
Materials 2016 301-2 Recycled Input Materials Used 89; 90
302 Energy
GRI 3:
3-3 Management of Material Topics 91
Material Topics 2021
302-1 Energy Consumption within the Organization 91-92
GRI 302:
302-3 Energy Intensity 92
Energy 2016
302-4 Reduction of Energy Consumption 91
303 Water and Effluents
GRI 3:
3-3 Management of Material Topics 93
Material Topics 2021
303-1 Interaction with Water as a Shared Resource 93
GRI 303: 303-2 Management of Water Discharge-Related Impacts 93
Water and Effluents
2018 303-3 Water Withdrawal 93
303-4 Water Discharge 93-94
304 Biodiversity
GRI 3:
3-3 Management of Material Topics 99
Material Topics 2021
Operational Sites Owned, Leased, Managed In, or Adjacent to, Protected Areas and
304-1 100
Areas of High Biodiversity Value Outside Protected Areas
GRI 304:
Biodiversity 2016 304-2 Significant Impacts of Activities, Products and Services on Biodiversity 100
304-3 Habitats Protected or Restored 99
305 Emissions
GRI 3:
3-3 Management of Material Topics 94
Material Topics 2021
305-1 Direct (Scope 1) GHG Emissions 95
305-2 Energy Indirect (Scope 2) GHG Emissions 95
GRI 305:
305-4 GHG Emission Intensity 95
Emissions 2016
305-6 Emissions of Ozone-Depleting Substances 96
305-7 Nitrogen Oxides (NOx), Sulfur Oxides (SOx), and Other Significant Air Emissions 96
306 Waste
GRI 3:
3-3 Management of Material Topics 97
Material Topics 2021
306-1 Waste Generation and Significant Waste-related Impacts 97
GRI 306: 306-2 Management of Significant Waste-related Impacts 98
Waste 2020 306-3 Waste Generated 98; 99
306-4 Waste Diverted from Disposal 98
308 Supplier Environmental Assessment
GRI 3:
3-3 Management of Material Topics 74
Material Topics 2021
GRI 308:
Supplier Environmental 308-1 New Suppliers that were Screened Using Environmental Criteria 74
Assessment 2016
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Disclosure
GRI - Standards Index Page
Title
No.
SOCIAL TOPICS
401 Employment
GRI 3:
3-3 Management of Material Topics 104-105
Material Topics 2021
401-1 New Employee Hires and Employee Turnover 107-108
GRI 401: Benefits Provided to Full-time Employees that are not Provided to Temporary or Part-
401-2 112-113; 114
Employment 2016 Time Employees
401-3 Parental Leave 114
402 Labor/Management Relations
GRI 3:
3-3 Management of Material Topics 114
Material Topics 2021
GRI 402:
Labor/Management 402-1 Minimum Notice Periods regarding Operational Changes 114
Relations 2016
403 Occupational Health and Safety
GRI 3:
3-3 Management of Material Topics 115-116
Material Topics 2021
403-1 Occupational Health and Safety Management System 115-116
403-2 Hazard Identification, Risk Assessment, and Incident Investigation 116-117
403-3 Occupational Health Services 118
Worker Participation, Consultation, and Communication on Occupational Health and
403-4 115-116
Safety
GRI 403: 403-5 Worker training on Occupational Health and Safety 118
Occupational Health
and Safety 2018 403-6 Promotion of Worker Health 118
Prevention and Mitigation of Occupational Health and Safety Impacts Directly Linked
403-7 117
by Business Relationships
403-8 Workers Covered by an Occupational Health and Safety Management System 115-116
403-9 Work-related Injuries 118-119
403-10 Work-related Ill Health 118-119
404 Training and Education
GRI 3:
3-3 Management of Material Topics 109
Material Topics 2021
GRI 404:
Training and 404-1 Average Hours of Training per Year per Employee 110
Education 2016
404-2 Programs for Upgrading Employee Skills and Transition Assistance Programs 109-110; 111
Percentage of Employees Receiving Regular Performance and Career Development
404-3 111
Reviews
405 Diversity and Equal Opportunity
GRI 3:
3-3 Management of Material Topics 105
Material Topics 2021
GRI 405: 405-1 Diversity of Governance Bodies and Employees 58; 105
Diversity and Equal
Opportunity 405-2 Ratio of Basic Salary and Remuneration of Women to Men 112
2016
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Disclosure
GRI - Standards Index Page
Title
No.
406 Non-discrimination
GRI 3:
3-3 Management of Material Topics 105
Material Topics 2021
GRI 406:
Non-discrimination 406-1 Incidents of Discrimination and Corrective Actions Taken 105
2016
407 Freedom of Association and Collective Bargaining
GRI 3:
3-3 Management of Material Topics 113
Material Topics 2021
GRI 407:
Freedom of
Operations and Suppliers in which the Right to Freedom of Association and Collective
Association and 407-1 113
Bargaining May Be at Risk
Collective Bargaining
2016
408 Child Labor
GRI 3:
3-3 Management of Material Topics 113
Material Topics 2021
GRI 408:
408-1 Operations and Suppliers at Significant Risk for Incidents of Child Labor 74; 113
Child Labor 2016
409 Forced or Compulsory Labor
GRI 3:
3-3 Management of Material Topics 113
Material Topics 2021
GRI 409:
Operations and Suppliers at Significant Risk for Incidents of Forced or Compulsory
Forced or Compulsory 409-1 74; 113; 114
Labor
Labor 2016
411 Rights of Indigenous Peoples
GRI 3:
3-3 Management of Material Topics 138
Material Topics 2021
GRI 411:
Rights of Indigenous 411-1 Incidents of Violations Involving Rights of Indigenous Peoples 138
Peoples 2016
413 Local Communities
GRI 3:
3-3 Management of Material Topics 122
Material Topics 2021
Operations with Local Community Engagement, Impact Assessments, and
GRI 413: 413-1 78; 124-137
Development Programs
Local Communities
2016 Operations with Significant Actual and Potential Negative Impacts on Local
413-2 122; 124; 138
Communities
414 Supplier Social Assessment
GRI 3:
3-3 Management of Material Topics 74
Material Topics 2021
GRI 414: 414-1 New Suppliers that were Screened Using Social Criteria 74
Supplier Social
Assessment 2016 414-2 Negative Social Impacts in the Supply Chain and Actions Taken 74
415 Public Policy
GRI 3:
3-3 Management of Material Topics 68
Material Topics 2021
GRI 415:
415-1 Political Contributions 68
Public Policy 2016
416 Customer Health and Safety
GRI 3:
3-3 Management of Material Topics 79
Material Topics 2021
GRI 416:
Customer Health and 416-1 Assessment of the Health and Safety Impacts of Product and Service Categories 79-80
Safety 2016
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Disclosure
GRI - Standards Index Page
Title
No.
417 Marketing and Labeling
GRI 3:
3-3 Management of Material Topics 80
Material Topics 2021
417-1 Requirements for Product and Service Information and Labeling 80
GRI 417:
Marketing and 417-2 Incidents of Non-Compliance concerning Product and Service Information and Labeling 81
Labeling 2016
417-3 Incidents of Non-Compliance concerning Marketing Communications 81
418 Customer Privacy
GRI 3:
3-3 Management of Material Topics 83
Material Topics 2021
GRI 418: Substantiated Complaints concerning Breaches of Customer Privacy and Losses of
418-1 83
Customer Privacy 2016 Customer Data
Cross Reference GRI Standards with SDGs
We are committed to contributing to achieving the SDGs in Indonesia. This contribution is delivered through links between
programs/activities in the Company’s Sustainability Report with GRI Standards and SDGs, as in the table below:
Standar
Discussion in Alignment
Logo Aim Disclosure Page
the Report with GRI
Standards
End Poverty Provision of GRI 201: 201-1
in All its Forms Employment, Economic Direct Economic Value Generated and
76
Everywhere Income, Performance Distributed
Remuneration, 2016
and Facilities
GRI 202: 202-1
Market Presence Ratios of Standard Entry Level Wage by
112
2016 Gender Compared to Local Minimum
Wage
GRI 401: 401-1
Employment New Employee Hires and Employee 107-108
2016 Turnover
401-2
Benefits Provided to Full-time Employees
112-113; 114
that are not Provided to Temporary or
Part-Time Employees
Local Community GRI 203: 203-2
Development Indirect Significant Indirect Economic Impacts
73; 78
and Economic
Empowerment Impacts 2016
GRI 413: 413-1
Local Operations with Local Community
78; 124-137
Communities Engagement, Impact Assessments,
2016 and Development Programs
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Standar
Discussion in Alignment
Logo Aim Disclosure Page
the Report with GRI
Standards
End Hunger, Provision of GRI 201: 201-1
Achieve Food Employment, Economic Direct Economic Value Generated and
76
Security and Income, Performance Distributed
Improved Remuneration, 2016
Nutrition, and and Facilities
GRI 401: 401-1
Promote
Employment New Employee Hires and Employee 107-108
Sustainable
2016 Turnover
Agriculture
401-2
Benefits Provided to Full-Time Employees
112-113; 114
that are not Provided to Temporary or
Part-Time Employees
Local Community GRI 203: 203-2
Development Indirect Significant Indirect Economic Impacts
73; 78
and Economic
Empowerment Impacts 2016
Ensure Healthy Commitment to GRI 403: 403-1
Lives and Promote Creating a Safe Occupational Occupational Health and Safety 115-116
Well-Being for All and Healthy Work Health and Safety Management System
at All Ages Environment in 2018
403-2
accordance with
Hazard Identification, Risk Assessment, 116-117
the Occupational
and Incident Investigation
Health and Safety
Principles 403-3
118
Occupational Health Services
403-4
Worker Participation, Consultation, and
115-116
Communication on Occupational Health
and Safety
403-5
Worker training on Occupational Health 118
and Safety
403-6
118
Promotion of Worker Health
403-7
Prevention and Mitigation of
117
Occupational Health and Safety Impacts
Directly Linked by Business Relationships
403-8
Workers Covered by an Occupational 115-116
Health and Safety Management System
403-9
118-119
Work-related Injuries
403-10
118-119
Work-related Health
Ensure Inclusive Competence GRI 404: 404-1
and Equitable Improvement Training and Average Hours of Training per Year per 110
Quality Education without Education 2016 Employee
and Promote Discriminating
404-2
Lifelong Learning against
Programs for Upgrading Employee Skills 109-110; 111
Opportunities Employees’
and Transition Assistance Programs
for All Gender and
Background 404-3
Percentage of Employees Receiving
111
Regular Performance and Career
Development Reviews
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Standar
Discussion in Alignment
Logo Aim Disclosure Page
the Report with GRI
Standards
Achieve Gender Provision of GRI 202: 202-1
Equality and Employment, Market Presence Ratios of Standard Entry Level Wage by
112
Empower Income, 2016 Gender Compared to Local Minimum
All Women and Remuneration, Wage
Girls and Facilities
GRI 401: 401-1
Employment New Employee Hires and Employee 107-108
2016 Turnover
401-2
Benefits Provided to Full-time Employees
112-113; 114
that are not provided to Temporary or
Part-Time Employees
GRI 405: 405-2
Diversity Ratio of Basic Salary and Remuneration
and Equal of Women to Men 112
Opportunity
2016
Anti- GRI 406: 406-1
discrimination Non- Incidents of Discrimination and
105
Labor discrimination Corrective Actions Taken
Management 2016
GRI 409: 409-1
Forced or Operations and Suppliers at Significant
74; 113; 114
Compulsory Risk for Incidents of Forced or
Labor 2016 Compulsory Labor
Ensure Availability Responsible GRI 303: 303-1
and Sustainable Water Usage Water and Interactions with Water as a Shared 93
Management and Management Effluents 2018 Resource
of Water and
303-2
Sanitation for All
Management of Water Discharge-Related 93
Impacts
303-3
93
Water Withdrawal
303-4
93-94
Water Discharge
Ensure Access to Responsible GRI 302: 302-1
Affordable, Energy Energy 2016 Energy Consumption within the 91-92
Reliable, Usage and Organization
Sustainable, and Management,
302-3
Modern including 92
Energy Intensity
Energy for All Efficiency
Measures
and Usage of 302-4
Renewable Reduction of Energy Consumption 91
Energy Sources
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Standar
Discussion in Alignment
Logo Aim Disclosure Page
the Report with GRI
Standards
Promote Provision of GRI 201: 201-1
Sustained, Employment, Economic Direct Economic Value Generated and
76
Inclusive and Income, Performance Distributed
Sustainable Remuneration, 2016
Economic and Facilities
GRI 202: 202-1
Growth, Full, and
Market Presence Ratios of Standard Entry Level Wage by
Productive 112
2016 Gender Compared to Local Minimum
Employment and
Wage
Decent Work
for All GRI 401: 401-1
Employment New Employee Hires and Employee 107-108
2016 Turnover
401-2
Benefits Provided to Full-Time Employees
112-113; 114
that are not Provided to Temporary or
Part-Time Employees
Freedom of GRI 407: 407-1
Association Freedom of Operations and Suppliers in which the
Association Right to Freedom of Association and 113
and Collective Collective Bargaining May Be at Risk
Bargaining 2016
Local Community GRI 203: 203-2
Development Indirect Significant Indirect Economic Impacts
73; 78
and Economic
Empowerment Impacts 2016
GRI 413: 413-1
Local Operations with Local Community
78; 124-137
Communities Engagement, Impact Assessments,
2016 and Development Programs
GRI 414: 414-2
Supplier Social Negative Social Impacts in the Supply 74
Assessment 2016 Chain and Actions Taken
Build Resilient Avian Brands’ GRI 413: 413-1
Infrastructure, Contribution to Local Operations with Local Community
Promote Inclusive the Construction Communities Engagement, Impact Assessments,
Sustainable of Public Facilities 2016 and Development Programs 124-137
Industrialization,
and Foster
Innovation
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Standar
Discussion in Alignment
Logo Aim Disclosure Page
the Report with GRI
Standards
Reduce Inequality Provision of GRI 201: 201-1
within and Employment, Economic Direct Economic Value Generated and
76
Among Countries Income, Performance Distributed
Remuneration, 2016
and Facilities
GRI 202: 202-1
Market Presence Ratios of Standard Entry Level Wage by
112
2016 Gender Compared to Local Minimum
Wage
GRI 401: 401-1
Employment New Employee Hires and Employee 107-108
2016 Turnover
401-2
Benefits Provided to Full-time Employees
112-113; 114
that are not Provided to Temporary or
Part-Time Employees
Local GRI 203: 203-2
Community Indirect Significant Indirect Economic Impacts
73; 78
Development Economic
and Impacts 2016
Empowerment
GRI 413: 413-1
Local Operations with Local Community
78; 124-137
Communities Engagement, Impact Assessments,
2016 and Development Programs
Make Cities Avian Brands’ GRI 413: 413-1
and Human Contribution to Local Operations with Local Community
Settlements the Construction Communities Engagement, Impact Assessments,
124-137
Inclusive, Safe, of Public Facilities 2016 and Development Programs
Resilient, and
Sustainable
Ensure Responsible Use GRI 301: 301-1
90
Sustainable of Materials Materials 2016 Materials Used by Weight or Volume
Consumption
301-2
and Production 89; 90
Recycled Input Materials Used
Patterns
Management GRI 306: 306-1
and Reuse of Waste 2020 Waste Generation and Significant 97
Waste as Raw Waste-related Impacts
Materials for
306-2
Manufacturing
Management of Significant 98
Waste-related Impacts
306-3
98; 99
Waste Generated
306-4
98
Waste Diverted from Disposal
Supplier GRI 308: 308-1
Engagement Supplier New Suppliers that were Screened using
that Emphasizes Environmental Environmental Criteria
74
Sustainable Assessment 2016
Production
Practices
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Standar
Discussion in Alignment
Logo Aim Disclosure Page
the Report with GRI
Standards
Take Urgent Reduction of GRI 305: 305-1
95
Action to Combat Emissions as a Emissions 2016 Direct (Scope 1) GHG Emissions
Climate Change cause of Global
305-2
and Its Impacts Warming and 95
Energy Indirect (Scope 2) GHG Emissions
Climate Change
305-4
95
GHG Emission Intensity
305-6
96
Emissions of Ozone-Depleting Substances
Protect, Restore, Reduction of GRI 305: 305-1
95
and Promote Emissions as a Emissions 2016 Direct (Scope 1) GHG Emissions
Sustainable Use cause of Global
305-2
of Terrestrial Warming and 95
Energy Indirect (Scope 2) GHG Emissions
Ecosystems, Climate Change
Sustainably 305-4
95
Manage Forests, GHG Emission Intensity
Combat 305-6
Desertification, 96
Emissions of Ozone-Depleting Substances
and Halt and
Reverse Land Activities to GRI 304: 304-3
Degradation, and Protect Flora Biodiversity 2016 Habitats Protected or Restored
99
Halt Biodiversity and Fauna Near
Loss Operational Sites
Promote Peaceful Implementing GRI 205: 205-1
and Inclusive Accountable Anti-Corruption Operations Assessed for Risks related to
64
Societies for and Transparent 2016 Corruption
Sustainable Business
Development, Practices, and
205-2
Provide Access Zero-tolerance
Communication and Training about
to Justice for All for All Forms 64
Anti-Corruption Policies and Procedures
and Build of Corruption,
Effective, Including
Accountable, and Bribery, 205-3
Inclusive Extortion, Fraud Confirmed Incidents of Corruption and
65
Institutions at All and Money Actions Taken
Levels Laundering
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List of Disclosures According to
Financial Services Authority Regulation
No. 51/POJK.03/2017 (“POJK 51/2017”) [POJK G.4]
Index
Name of Index Page
No.
A.1 Description on Sustainability Strategy 4
Sustainability Performance Overview
B.1 Economic Performance Overview 12
B.2 Environmental Performance Overview 12
B.3 Social Performance Overview 13
Company Profile
C.1 Vision, Mission, and Values of Sustainability 30
C.2 Address of the Company 29
C.3 Company Classification 35; 36; 105
C.4 Products, Services, and Operated Business 32-34
C.5 Membership Associations 21
C.6 Significant Organizational Change 38
Comment by the Board of Directors
D.1 Comment by the Board of Directors 22-25
Sustainability Governance
E.1 Person in Charge on the Implementation of Sustainable Finance 59
E.2 Competence Development related to Sustainable Finance 60-61
E.3 Risk Assessment on the Implementation of Sustainable Finance 61-63
E.4 Relationship with Stakeholders 42-45
E.5 Issues on the Implementation of Sustainable Finance 11
Sustainability Performance
F.1 Activities on Building a Sustainable Culture 63
Economic Performance
F.2 Comparison of Targets and Performance on Manufacturing, Portfolio, Financing Targets, or
75
Investments, Income and Profit and Loss
F.3 Comparison of Targets and Performance on Portfolio, Financing Targets, or Investments in
75
Financial Instruments or Projects in Line with Sustainable Finance
Environmental Performance
General
F.4 Environmental Costs 100
Material Aspect
F.5 Use of Environmentally Friendly Materials 89
Energy Aspect
F.6 Amount and Intensity of Energy Used 92
F.7 Efforts and Achievements in Energy Efficiency and Use of Renewable Energy 91; 92
Water Aspect
F.8 Water Usage 93
154 PT Avia Avian Tbk - 2023 Sustainability Report
Page 157
Painting a Beautiful Picture of Indonesia
Index
Name of Index Page
No.
Biodiversity Aspect
F.9 Impacts from Operational Areas that are Near or Located in Conservation Areas or with Biodiversity 100
F.10 Biodiversity Conservation Efforts 99
Emission Aspect
F.11 Number and Intensity of Emissions Generated by Type 95
F.12 Efforts and Achievements Made in Emission Reduction 94; 95
Waste and Effluent Aspect
F.13 Amount of Waste and Effluent Generated by Type 98-99
F.14 Waste and Effluent Management Mechanism 98
F.15 Spills (if any) 99
Aspect of Complaints related to the Environment
F.16 Number and Material of Environmental Complaints Received and Resolved 100
Social Performance
F.17 Commitments of FSI (LJK), Issuers, or Public Companies to Provide Equivalent Products and/or Services
79
to Consumers
Employment Aspect
F.18 Equal Employment Opportunity 105
F.19 Child Labor and Forced Labor 113; 114
F.20 Regional Minimum Wage 112
F.21 Decent and Safe Work Environment 115
F.22 Employee Capability Training and Development 109; 110
Community Aspect
F.23 Impact of Operations on Surrounding Communities 78
F.24 Community Complaints 138
F.25 Environmental Social Responsibility (ESR) Activities 124-137
Responsibility for Sustainable Product/Service Development
F.26 Innovation and Development of Sustainable Financial Products/Services 81
F.27 Products/Services that Have Been Evaluated for Safety for Customers 79-80
F.28 Product/Service Impact 80
F.29 Number of Recalled Products 83
F.30 Customer Satisfaction Survey on Sustainable Financial Products and/or Services 83
Others
G.1 Written Verification from Independent Party (if any) 140
G.2 Feedback Form 141
G.3 Responses to Feedback on Previous Year’s Reports 143
G.4 List of Disclosures According to POJK 51/2017 154-155
2023 Sustainability Report - PT Avia Avian Tbk 155
Page 158
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Painting a Beautiful Picture of Indonesia SUSTA I NA BILITY REP O RT 2023 www.avianbrands.com avianbrands avian.brands Avian Brands www.facebook.com/Avianbrands Find Avia Brands Linkedin/PT Avia Avian Tbk. (Avian Brands) products here.
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