Employment and OHS


In establishing a relationship with employees, the Company complies with the applicable laws and regulations, in this case, Law No. 13 of 2003 on Manpower. In addition, the Company also prioritizes occupational health and safety (OHS) aspect for employees as stipulated in Law of the Republic of Indonesia No. 1 of 1970 on Occupational Safety and Health and Government Regulation No. 50 of 2012 on Application of Occupational Safety and Health Management System.

Policies related to employment and OHS aspects are mainly listed in the Collective Labor Agreement between the Company’s Management and the trade union. In addition, the Company also has other technical policies.

Issues and risks related to corporate social responsibility activities in the field of employment and OHS are mainly related to aspects of employment and industrial relations, including gender equality in job opportunities, equality in education and training programs, employee remuneration and welfare, promotion, retirement program, as well as occupational health and safety. Indocement ensures that the Company has complied with the laws and regulations related to these issues.

Gender Equality and Equal Job Opportunities

Indocement provides equal opportunities for all employees, both male and female, regardless of ethnicity, religion, race, class, gender, or physical condition to participate in the employee recruitment program. The appointment of prospective employees is based on the selection results, evaluation results during the probationary period, and employee orientation.

Human Resources Quality and Competency Development

Training and competency development programs are implemented for all employees by considering the Company's needs. However, the Company ensures that every employee has the same rights to participate in the training and competency development programs in order to support the employee’s career development. In 2020, the Company organized education and competency development programs, which were held in the house or held by third parties

Employee’s Remuneration and Welfare

Employees’ welfare is one of the rights that must be fulfilled by the Company, one of which can be fulfilled through adequate remuneration or compensation. In principle, a commensurate remuneration, aside from increasing employees’ engagement with the Company, also supports the Company’s development pace as each employee will work optimally in smoothing the Company’s work plan.

To provide competitive remuneration, the Company has set a standard of remuneration based on employees’ ranks and position levels as well as remuneration surveys in similar industries by considering manpower laws and provincial minimum wage (UMP) regulations.

Performance evaluations for all (100%) staff employees are conducted periodically based on Key Performance Indicators (KPIs) according to each employee's duties and responsibilities. Several aspects of employee performance evaluation are also linked to ESG, Including the CO2 reduction target embedded in the remuneration system. The Company appreciates highperforming employees and provides bonuses based on the Company's performance and each employee's achievement of KPIs. Indocement's remuneration system is based on performance and outcomes by labor laws. The Company ensures that employee remuneration complies with applicable Minimum Wage regulations. Additionally, the Company provides other allowances to employees, including health benefits, performance, service, and others.


Industrial Relationship

To create harmonious industrial relations, since 2003 the Company and the trade union organization have agreed on a collective labor agreement (CLA). CLA regulates the rights and obligations of employees and the Company by promoting the principle of mutual respect and mutual benefit. The Company’s management and Trade Union review the CLA every two years.

Occupational Safety And Health Practices

The Company formed a special division to handle various matters related to OHS, namely the Corporate Safety Health Environmental (CSHE) Division. In addition, a Safety Health and Environment (SHE) Department also exists at each factory location. Not only that, but the Company has also specifically formed a Safety Committee, which is chaired directly by the President Director of Indocement.

Indocement already has a Life Safety Regulation as a guide for implementing OHS within the Company. The Life Safety Regulation is applied to all employees of the Company, contractors, and of all visitors who are in the Company’s work area as an effort to protect everyone in the Company’s work area so that there are no potential hazards that can result in deadly accidents and serious injuries.

Several matters stipulated in the Life Safety Regulation are:

  1. Standard personal protective equipment;
  2. Working at height;
  3. Entering confined spaces;
  4. Working in hot areas and hot work;
  5. Energy isolation: LOTOTO (Lock Out, Tag Out, Try Out);
  6. Driving safety.

OHS Training

Indocement established the Indocement-Safety Health Environment Learning Center (I-Shelter). I-Shelter is a training center, which focuses on occupational safety and the environment. The I-Shelter establishment aims to harmonize the understanding of Indocement’s safety culture, including the principles, guidelines, safety procedures, occupational health, and environment. Alignment of understanding is given not only to employees but also to each of the Company’s contractors.

I-Shelter has various supporting facilities, including personal protective equipment simulation, kiln simulation, and driving simulation. In addition, I-Shelter has a number of training programs including working in confined spaces, working at height, scaffolding, working in hot areas, Lock-out, Tag-out, Try-out (LOTOTO), emergencies, and refractory work. Apart from I-Shelter, Indocement also provides OHS training through classroom methods and e-learning.