1. Environmental Responsibility

The Company, through its subsidiary, PT Alakasa Extrusindo (“AE”) and PT. Alakasa Alexindo Mitra Sejati (“AAMS”), has conducted effective and efficient production process design in order to be able to minimize the industrial waste, and as an effort to control waste water pollution, the Subsidiary has also owned waste water treatment installation, which is waste land waste disposal and sites separation of hazardous and Non hazardous, in order to comply with the environmental quality standards.

Products manufactured by Subsidiary in the aluminum extrusion industry, AE and AAMS are environmentally friendly and recyclable products.

Concerning complaints on environmental issues, in the event that there are complaints from the surrounding community regarding waste, the company through the production division, in this case the Safety, Health & Environmental section will be pro-active in paying attention to complaints and will respond to complaints by explaining the causes of environmental problems and will certainly find solutions for its problems

During the year of 2019, the Company did not receive any complaints related to environmental problems.

ISO 9001: 2015 certification owned by AE as one of Subsidiary with the validity period starting January 21, 2019 until January 14, 2020.

2 Labor Practices Responsibility, Occupational Safety and Health

The strong industrial relations between the Company and all employees is one of the keys that determines the Company’s business sustainability. Therefore, the Company continuously strives to exercise the rights and obligations of its employees in accordance with the applicable Company Regulations and Legislation. The Company also strives to create and maintain harmonious and fair working relationships without distinction of ethnicity, race, religion, class or gender either among employees or employees and the Company, as well as in conducting promotional processes and new employee recruitment processes.

The Company through its Subsidiary, AAMS, during the year of 2019 received a field visit from ITB students who wanted to make direct observations of the production process that took place at AAMS.

The Company and its Subsidiary have adopted the practice of Occupational Health and Safety (K3) which includes occupational health services by establishing a clinic in the company itself. With internal clinic, employees can optimize health services in order to maintain their physical health.

The Company through its Subsidiaries, during the year 2019, has recorded a low turnover, generally occurs due to the completion of their the contracts period . In addition, during the year of 2019 no work accident (Zero Accident) had occurred.

The Company through its Subsidiary, AAMS, during of the year 2019, had conducted several training programs in order to improve the quality of work for operators including work training to improve product quality by experts from SANKIN Corp. and AUTOCAD Inventor Training for R&D Staff by experts from PT. Alexindo.

There are several mechanism / resolution of complaints steps to be taken concerning labor problems, first workers can submit complaints in the first opportunity to the direct supervisor both oral and written. Furthermore, if the worker feels dissatisfied, then the worker may request a settlement from the HR & Admin Department or from a higher supervisor. If the complaint or problem has yet to be resolved or has not resolved, then both parties can ask for assistance from the local manpower agency to conduct a mediation process.

3. Social and Community Development

During the year of 2019, the Company has contributed donation for the Badminton Kujang Sakti Championship in Bogor in the amount of Rp. 15,000,000, – contributed donation to relief funds for Musdad, Posyandu, Mosque, Road Gereja, Sub-District Office, Security Post in Toba Subdistrict, Sanggau Regency, West Kalimantan in the amount of Rp. 45,495,000, – contributed donation in celebration of Bhayangkara’s birthday in the amount of Rp. 5,000,000, – then contributed donation of the “Exploring the Boundary Line” in the framework of the 74th anniversary of the TNI in the amount of Rp. 5,000,000, and the annual contribution for the Jakarta Disabled Child Development Foundation in the amount of Rp. 120,000,000,

4. Responsibility for Goods and / or Services

As stipulated in the Code of Business Conduct and Ethics of the Company, in principle, the company conducts its business activity on the basis of the strength of products and services in terms of Quality, Cost, Delivery, Safety and Moral (QCDSM) as well as commitment to Customer satisfaction.

Information concerning products and services, whether verbally or through brochures, advertisements and other promotional materials, is presented clearly, correctly and accurately, and does not provide excessive expectations in the event to avoid misinterpretation in the future that could affect to the companys image. The Company provides the best service to all Customers.

The subsidiary, AE and AAMS has a standard procedure that every item produced and delivered to the consumer has passed the process of strict quality inspection in accordance with quality standard and SOP, it also has Customer Service under the supervision of Sales & Marketing Department, responsible for taking care and following up of all consumer complaints related to products which have been produced by AE and AAMS.