PT. INDO-RAMA SYNTHETICS TBKCSR REPORT

2016

ContentsDaftar Isi

Vice President Commissioner’s Message Pg 3Pesan dari Wakil Presiden KomisarisWhat We Do Pg 4 Apa yang Kami LakukanOur Business Philosophy Pg 5Filosofi Bisnis KamiIndorama Policy Statement Pg 6Pernyataan Kebijakan IndoramaCSR Implementation Pg 7Implementasi CSRCSR Team Structure Pg 7Struktur Tim CSRCSR Activities Pg 8Kegiatan CSREducation Pg 9-19Pendidikan

• Politeknik Enjineering Indorama (PEI)• Rama Global School• Community Education Support

Dukungan Kepada Pendidikan MasyarakatHealthcare Pg 20KesehatanCommunity Development Pg 21-23Pengembangan Masyarakat

• Supporting Community Religious ActivitiesAktivitas Dukungan Keagamaan Masyarakat• Supporting Local Government

Dukungan Kepada Pemerintah LokalEnvironment Pg 24-32Lingkungan

• Tree Planting Penanaman Pohon• Eco-Friendly Products Produk Ramah Lingkungan• Energy Conservation Penghematan Energi• Company-wide Energy Efficiency Activities

Aktivitas Penghematan Energi di Seluruh PerusahaanSafety Pg 33-34Keselamatan

• ESG Training Pelatihan ESG Pg 35• Employee Welfare Kesejahteraan Karyawan Pg 36-37• Assessment Development Center Program ADC Pg 38

Contact Details Pg 39Detil Kontak

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Senior Management Commitment to CSRKomitmen Manajemen Senior untuk CSR

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“Indorama’s corporate social responsibility initiatives are embedded in our corporate

values. We are seeking Business Leadership that balances Industry

Excellence and Customer Delight with a strong focus on Sustainability (care for the

physical environment, eco products, conservation and energy savings) and

People First (employee welfare, training and engagement and community care). We thank you for taking interest in Indorama’s

CSR journey”.-Mr Amit Lohia

Vice President Commissioner

"Prakarsa tanggung jawab sosial perusahaanIndorama tertanam dalam nilai-nilaiperusahaan kami. Kami mencariKepemimpinan Bisnis yang menyeimbangkanKeunggulan Industri dan KesenanganPelanggan dengan fokus yang kuat padaKeberlanjutan (kepedulian pada lingkunganfisik, produk ramah lingkungan, konservasidan penghematan energi) dan Orang yang Utama (kesejahteraan karyawan, pelatihandan keterlibatan serta kepedulianmasyarakat). Kami mengucapkan terima kasihatas perhatiannya terhadap perjalanan CSR Indorama “- Bapak Amit Lohia, Wakil PresidenKomisaris

What We DoApa yang kami lakukan

PolyesterThe Company’s current

installed capacity is over 280,000 of PSF, PFY, PET

Resin and textile grade chips.

PoliesterKapasitas perusahaan saat inilebih dari 280,000 PSF, PFY, PET Resin dan textile grade chip.

Spun YarnsThe Company’s current

installed capacity is over 335,000 spindles.

Benang PintalKapasitas perusahaan saat iniadalah lebih dari 335.000 spindle.

FabricsThe Company's currently

installed capacity is 60 million meters per annum of

woven and processed polyester filament fabrics.

KainKapasitas Perusahaan saat iniadalah 60 juta meter per tahun kain filamen poliestertenunan dan olahan

Captive Power PlantIn 2006, PT. Indo-Rama

Synthetics Tbk set up a 60 MW coal based power plant

(2 x 30 MW) to address its power requirements at its

large complex in Purwakarta, Indonesia.

Pembangkit listrikDi 2006, PT. Indo-Rama Synthetics Tbk mendirikan pembangkit listrik bertenagabatu bara 60 MW (2x 30 MW) untuk memenuhi kebutuhan listrik di kompleks besarnya di Purwakarta Indonesia.

The Company, incorporated in 1975, commenced commercial production in 1976

with a cotton spinning mill in Purwakartasteadily diversified and expanded its Spun Yarn

business. The Company then added manufacturing of Polyester Filament Yarns,

Polyester Staple Fibers, PET Resin, Polyester Chips, and Polyester Filament Fabrics production

for global markets, with plants located in West Java (in Purwakarta, Campaka and Bandung),

Indonesia. The Company has been listed on the Indonesia Stock Exchange since 1990.

Perusahaan ini didirikan pada tahun 1975 dan memulai produksi komersial pada tahun 1976 dengan pabrik pemintalan kapas di Purwakarta, terus melakukan diversifikasi dan memperluas bisnis Benang Pintal. Perusahaan lalumenambahkan pembuatan Benang Poliester Filamen, Serat Poliester Staple, PET Resin, Poliester Chips, dan memproduksi Kain Poliester Filamen untuk pasar global, dengan pabrik yang terletak di Jawa Barat (Purwakarta, Campaka dan Bandung), Indonesia. Perusahaan telah terdaftar di Bursa Efek Indonesia sejak tahun 1990.

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Our Business PhilosophyFilosofi Bisnis Kami

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Industry Excellence

To operate our plants, follow work practices, and have costs and quality that

are in the forefront of our industry and demonstrate continuous improvement as a

knowledge driven company.

People First

To prioritize motivation, sense of commitment, mutual respect, openness, and teamwork among our employees and ensure alignment of all our systems to the

same.

Sustainability

To courageously grow our top and bottom line in a manner that reflects responsible

corporate governance and concern for our

social and physical environment.

Customer Delight

To delight customers with our quality, service, and value proposition, and

proactively understand and address their needs through innovation.

Business Leadership

To display leadership qualities in the businesses we operate and earn the

admiration of our peers.

Keunggulan industri

Untuk mengoperasikan pabrik, kami mengikuti praktik kerja, dan memiliki

pembiayaan serta kualitas yang berada di garis depan industri kami dan melakukan

perbaikan terus-menerus sebagaiperusahaan yang didorong pengetahuan.

Orang yang Utama

Memprioritaskan motivasi, rasa komitmen, rasa saling menghormati, keterbukaan, dan

kerja tim di antara karyawan kami danmemastikan keselarasan bahwa semua

sistem kami sama.

Keberlanjutan

Dengan berani meningkatkan pendapatan

dan keuntungan dengan cara yang mencerminkan tata kelola perusahaan

yang bertanggung jawab dan kepedulianterhadap lingkungan sosial dan fisik.

Kesenangan pelanggan

Menyenangkan pelanggan dengan kualitas, layanan, dan proposisi nilai kami, serta

secara proaktif memahami dan memenuhikebutuhan mereka melalui inovasi.

Kepemimpinan Bisnis

Untuk menampilkan kualitaskepemimpinan dalam bisnis, kami

beroperasi dan mendapatkankekaguman dari rekan-rekan kami.

Indorama Policy StatementPernyataan Kebijakan Indorama

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To pursue and follow Indorama’s Vision, Values and Motto at all levels within the

organization.

Committed to prevent injury, ill health, and prevent pollution and to continuously

improve compliance of Quality, Health, Safety and Environment Management

Systems through applicable ISO, OHSAS standards and comply with legal and

other requirements.

To continuously review Quality Objectives, KPI’s, Health & Safety

Procedures, Control of Waste Management, Emission and

4-R usage, for improving Plant Performance, Health & Safety and Environment.

Actively promote shared values by enhancing training, knowledge and skills

of all human resources.

Creating lasting partnership with customers through quality products, effective

service, safe and environment friendly operation in all our facilities.

Untuk mengikuti dan melaksanakan Visi, Nilai-nilai dan Motto Indorama di semua level di dalam organisasi.

Berkomitmen untuk mencegah kecelakaan, sakit akibat kerja,pencemaran lingkungan dan secara terus menerus meningkatkan pemenuhan Mutu, Kesehatan dan Keselamatan Kerja serta Sistem Pengelolaan Lingkungan Hidup melalui penerapan Standard ISO, OHSAS dan kepatuhan terhadap peraturan dan persyaratan lainnya.

Untuk terus menerus mengkaji Sasaran Mutu, KPI, Prosedur Kesehatan dan Keselamatan Kerja, Pengendalian Pengelolaan Limbah, Emisi dan Penerapan 4-R untuk meningkatkan Kinerja Perusahaan, Kesehatan & Keselamatan Kerja serta Lingkungan.

Secara aktif mengedepankan nilai-nilai dengan meningkatkan training, pengetahuan dan kemampuan seluruh sumber daya manusia.

Menciptakan kemitraan jangka panjangdengan pelanggan melalui mutu produk, pelayanan yang efektif, aman dan ramah lingkungan dalam pengoperasian seluruh fasilitas kami.

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CSR Team StructureStruktur Tim CSR

CSR ImplementationImplementasi CSR

A CSR Team comprised of senior management reports directly to the President Director and

implements the CSR programs that are identified at the start of each year. The Site

Head at Indorama Purwakarta, supported by a dynamic team of Indonesian and expatriate managers, implement these programs with passion and commitment. In 2016 we have

increased the participation of our young talent pool in order to get fresh ideas and enhance

long term sustainability of CSR projects.

Every attempt is made to involve a wider range of employees and to effectively socialize the programs. Outreach is made to stakeholders

such as the local government, civil society organizations and academic institutions. Our

CSR programs are helping to enhance our positive engagement and communication with

all these valuable stakeholders.

CSR reports and activities are periodically reviewed by the Vice President Commissioner

Mr Amit Lohia.

Tim CSR terdiri dari manajemen senior yang melapor langsung kepada Direktur Utama danmelaksanakan program CSR yang teridentifikasipada awal setiap tahunnya. Kepala Pabrik di Indorama Purwakarta, didukung oleh timdinamis manajer Indonesia dan ekspatriat, menerapkan program ini dengan semangat dankomitmen. Pada tahun 2016, kami telahmeningkatkan talenta muda kami untukmendapatkan gagasan baru dan meningkatkankeberlanjutan proyek CSR jangka panjang.

Setiap usaha dilakukan untuk melibatkan lebihbanyak karyawan dan untuk mensosialisasikanprogram secara efektif. Penjangkauan dilakukankepada pemangku kepentingan sepertipemerintah daerah, organisasi masyarakat sipildan institusi akademis. Program CSR kami membantu meningkatkan keterlibatan dankomunikasi positif kami dengan semuapemangku kepentingan yang penting.

Laporan dan aktivitas CSR ditinjau secara berkalaoleh Wakil Presiden Komisaris Bapak Amit Lohia.

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President DirectorPresiden Direktur

PatronsKetua

CSR Management Team (5)Anggota (5)

SecretarySekretaris

CSR Advisory Team(Penasehat)

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Commmunity Development

(PengembanganMasyarakat)

Education(Pendidikan)

Environment(Lingkungan)

Healthcare(Kesehatan)

We are endeavoring to maximize impacts and add lasting value to the region of

Purwakarta in West Java where we are located. In order to achieve this our CSR

activities are focussed on 4 areas –Education, Healthcare,

Community Development and Environment.

Kami berusaha untuk memaksimalkan danmenambah manfaat jangka panjang untukKabupaten Purwakarta di Jawa Barat di mana kami berada. Untuk mencapai hal ini, kegiatan CSR kami difokuskan pada 4 bidang - Pendidikan, Kesehatan,Pengembangan Masyarakat danLingkungan Hidup.

CSR ActivitiesKegiatan CSR

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EducationPendidikan

Over 60 pct of Indonesia’s population is below the age of 30 years. As a result education has

become a core priority in the government’s nation building efforts. However, Indorama

believes that responsible companies too must play a supporting role. In support of Ministry of Education’s focus on vocational education

PT Indo-Rama Synthetics Tbk established Yayasan Pendidikan Indorama, which set up an

engineering polytechnic called PoliteknikEnjinering Indorama or PEI in 2013, with the complete state of the art infrastructure and

facilities being set up and supported by Indorama.

PEI has since become the flagship institution under the company’s education based CSR

efforts. The institute offers 3 year diplomas in Mechanical, Electrical and Instrumentation

Engineering. Located in an eco campus adjacent to Indorama’s manufacturing site,

the institute offers students unique practical learning opportunities. These include a

Vocational Training Center that produces draw texturized yarn or DTY and provides students a

“real life” experience of a factory environment. Each faculty has it’s own well

equipped lab that is continuously upgraded. PEI is also ensuring students are proficient in computer science, English language and that

they are being imparted a values based education that is amongst the best in

Indonesia.

PEI is a non profit institution with all surpluses being invested back in enhancement of

facilities. A dedicated Foundation, YayasanPendidikan Indorama or YPI ensures strong

oversight and continuous improvement.

Lebih dari 60 persen penduduk Indonesia berusia di bawah 30 tahun. Dengan demikianpendidikan menjadi prioritas utama dalam upaya pembangunan bangsa. Namun, Indorama yakin bahwa perusahaan yang bertanggung jawab juga harus memainkan peran pendukung. Untuk mendukung fokus Kementerian Pendidikan pada pendidikan kejuruan PT Indo-Rama Synthetics Tbkmendirikan Yayasan Pendidikan Indorama yang mendirikan Politeknik disebut Politeknik Enjinering Indorama atau PEI pada tahun 2013, dengan fasilitas dan infrastrukturmodern dan didukung oleh Indorama.

Sejak didirikan PEI telah menjadi institusi andalan di bawah upaya CSR perusahaan berbasis pendidikan. Lembaga ini menawarkan program D3 di jurusan Teknik Mesin, Elektro dan Mekatronika. Terletak di dalam kampus yang ramah lingkungan danberdekatan dengan lokasi pabrik Indorama, institut ini menawarkan kepada siswa kesempatan belajar praktis yang unik. Ini termasuk Bangsal Pelatihan Vokasi yang menghasilkan benang bertekstur atau DTY dan memberi “pengalaman nyata" dari lingkungan pabrik. Setiap fakultas memiliki lab yang lengkap dan terus ditingkatkan. PEI juga memastikan siswa mahir dalam ilmu komputer, bahasa Inggris dan mereka diberikan manfaat pendidikan terbaik di Indonesia.

PEI adalah lembaga nirlaba dengan semua surplus yang diinvestasikan kembali dalam peningkatan fasilitas. Yayasan yang berdedikasi, Yayasan Pendidikan Indorama atau YPI memastikan pengawasan dan perbaikan yang kuat.

Politeknik Enjinering Indorama (PEI)

Since its establishment in 2013, PoliteknikEnjinering Indorama (PEI) has quickly

established itself as one of Indonesia’s leading institutions of vocational education. With a

strong emphasis on practical hands-on training and proximity to Indorama’s world class

manufacturing facilities the institute offers a unique learning experience.

Sejak didirikan pada tahun 2013, Politeknik Enjinering Indorama (PEI) dengan cepat menjadi salah satu institusi pendidikan kejuruan terkemuka di Indonesia. Dengan penekanan kuat pada pelatihan praktis dan kedekatan dengan fasilitas manufaktur kelasdunia Indorama, institut ini menawarkan pengalaman belajar yang unik.

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2016 marked a proud milestone for PEI as it saw the graduation of our first batch of

students. The Chief Guest at the graduation ceremony was Indorama Group Chairman MrSP Lohia who is the visionary behind PEI. The well attended ceremony held at the campus

brought together proud parents, officials of the local government and ministry of education, supervisory board members, corporate and institutional partners, Indorama employees

and media representatives.

Tahun 2016 menandai tonggak sejarah yang membanggakan bagi PEI karena merekameluluskan angkatan pertama. Tamu utamapada acara wisuda adalah Ketua Group Indorama Bapak SP Lohia yang merupakan visioner di belakang PEI. Upacara yang berhasildiselenggarakan di kampus tersebut mempertemukan orang tua yang bangga, pejabat pemerintah daerah dan kementerian pendidikan, anggota dewan pengawas, mitra perusahaan dan institusi, karyawan Indorama serta perwakilan media.

Mr. SP Lohia with dignitaries and members of the Board of Yayasan Pendidikan Indorama at

the Graduation Ceremony.Bapak SP Lohia dengan para pejabat dan

anggota Dewan Yayasan Pendidikan Indorama pada Upacara Wisuda.

Procession of graduating students.Prosesi wisuda mahasiswa.

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Indorama’s core operating principle of Continuous Improvement has been

implemented at PEI. Under this each academic discipline identifies specific roadmaps that

include compliance with accreditation requirements, industry linked teaching

methodologies, careful pre-screening of students to ensure quality of intake, faculty

performance management and facilities upgrade among others. PT IndonesiaWISE

organizes annual Institutional Excellence workshops to help facilitate PEI’s progress.

Prinsip utama Peningkatan BerkelanjutanIndorama telah diterapkan di PEI. Di bawahprinsip ini masing-masing disiplin akademikmengidentifikasi peta jalan yang mencakuppemenuhan persyaratan akreditasi, metodologipengajaran terkait industri, penyaringan siswayang cermat untuk memastikan kualitasmahasiswa baru, peningkatan kinerja dosendan fasilitas. PT IndonesiaWISEmenyelenggarakan workshop KeunggulanInstitusi tahunan untuk memfasilitasi kemajuanPEI.

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Mechanical Engineering(Teknik Mesin)

Mechatronics (Mekatronika) Electrical Engineering (TeknikElektro)

Total Number of Students at PEI (Total Siswa di PEI)

2013 2014 2015 2016

Total Students (Total Siswa) 2013: 912014: 832015: 972016: 68

At PEI an optimum ratio of 65:35 has been developed between practical learning and

theoretical knowledge. Dedicated faculty trains students to apply engineering concepts on various

tools, machines and systems.

Di PEI, rasio optimal 65:35 telah dikembangkan antara pembelajaran praktis dan pengetahuan teoritis. Para dosen khusus melatih siswa untuk menerapkan konsep teknik pada berbagai alat, mesin dan sistem.

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PEI’s campus fosters an ideal environment for learning and development. From its well

equipped laboratories to its latest computer equipments, updated library and innovation

based project work, the institute is helping to prepare students well for the challenging

demands of the industrial environment in Indonesia.

Kampus PEI menciptakan lingkungan ideal untuk pembelajaran dan pengembangan. Dari laboratorium yang lengkap dengan peralatankomputer terbaru, perpustakaan yang terusdiperbaharui dan proyek kerja berbasis inovasi, institusi ini membantu mempersiapkan siswadengan baik untuk memenuhi tuntutanlingkungan industri di Indonesia.

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PEI’s progress has been appreciated by the Ministry of Education. On 3 November 2016,

Mr. Mohammad Nasir, Minister of Research, Technology and Higher Education (featured above)

visited the institute and congratulated the supervisory board, faculty and students for creating

an institution that is in line with the government’s vision for vocational training excellence in Indonesia.

PEI also receives overseas visitors regularly. In August 2016 the Industry Minister of Algeria Mr.

Abdessalem Bouchouareb visited the campus.

Kemajuan PEI telah diapresiasi oleh Kementerian Pendidikan. Pada tanggal 3 November 2016, BapakMohammad Nasir, Menteri Riset, Teknologi danPendidikan Tinggi (foto atas) mengunjungi instituttersebut dan mengucapkan selamat kepada dewan pengawas, dosen dan mahasiswa yang telahmenciptakan institusi yang sesuai dengan visipemerintah untuk meningkatkan keunggulanpelatihan kejuruan di Indonesia.

PEI juga menerima kunjungan dari luar negerisecara teratur. Pada bulan Agustus 2016, Menteri Industri Aljazair, Bapak Abdessalem Bouchouarebmengunjungi kampus tersebut.

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Selain pengetahuan teori dan pelatihanpraktis, PEI juga memberikan bimbingan danketerampilan kepada mahasiswa. Foto di kiri atas adalah foto sesi persiapanuntuk penempatan dan bulan karir. Foto di kanan atas adalah foto program sertifikasiyang diadakan oleh Dinas Tenaga Kerja danTransmigrasi Propinsi Jawa Barat.

Workshop Keunggulan Mentoring tahunanuntuk angkatan kelulusan dilakukan olehmentor pemenang penghargaan danpendidik Bapak Amol Titus (foto bawah).

Apart from theory and practical training PEI also provides students with mentoring and life skills guidance. Featured top left is

a preparatory session for placement and career month. Featured top right is a

certification session from the officials of the Ministry of Transmigration and Labor

of West Java province.

Annual Mentoring Excellence workshops for the graduating batch are conducted

by award winning mentor and educationist Mr Amol Titus (below).

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Sponsored by PT. Indo-Rama Synthetics Tbk in 1994, Rama Global School (RGS) is managed

by the Rama International School Foundation. Situated close to the lake Jatiluhur and

providing the perfect ambience for scholarly pursuits, RGS is an asset for expatriate

children (of the Group and other organizations) living in Purwakarta, Indonesia

and also from other cities, with excellent boarding facilities on campus.

To prepare the students for holistic growth, the school offers a wide range of activities like

public speaking, debate, quizzes, dramatics, dance, music, art, craft and ceramics.

Athletics, swimming, cricket, basketball, badminton, soccer and karate to develop the

physical faculties of our students. Social service and community welfare activities are

also part of the education at RGS.

Disponsori oleh PT. Indo-Rama Synthetics Tbkpada tahun 1994, Rama Global School (RGS) dikelola oleh Rama International School Foundation. Terletak dekat dengan danauJatiluhur dan memberikan suasana yang sempurna untuk kegiatan pendidikan, RGS merupakan aset bagi anak-anak ekspatriat (GrupIndorama dan organisasi lainnya) yang tinggal di Purwakarta, Indonesia dan juga dari kota-kotalain, dengan fasilitas asrama yang sangat baik di kampus.

Dalam mempersiapkan siswa untukpertumbuhan yang menyeluruh, sekolah inimenawarkan berbagai kegiatan sepertiberpidato, debat, kuis, drama, tarian, musik, seni, kerajinan dan keramik. Olahraga, berenang, kriket, bola basket, bulutangkis, sepakbola dan karate untuk mengembangkan fisiksiswa kami. Kegiatan pelayanan sosial dankesejahteraan masyarakat juga merupakanbagian dari pendidikan di RGS.

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Rama Global School

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Bantuan Pendidikan untukJuara Lomba Membaca Al-Quran (MTQ) tingkat SD danSMP Desa Kembangkuning, Desa Cibinong dan DesaBunder

Educational Aid for Al-Quran Reading Championship of elementary & junior high

schools of KembangkuningVillage, Cibinong Village &

Bunder Village

Bantuan Beasiswa untuk 84 siswa berprestasi di DesaKembangkuning & DesaCibinong

Scholarship Assistance for 84 outstanding students in

Kembangkuning Village and Cibinong Village

Praktek Kerja Lapanganbagi siswa SekolahMenengah Atas

Field Work Practice for Senior High School

students

Bantuan untuk para siswaSekolah Luar Biasa NegeriPurwakarta

Assistance for students of Purwakarta School

for Special Needs

PEI menyelenggarakanpelatihan Bahasa Inggris untuksiswa SMA yang di prakarsaioleh PRIIDE – Program untukPengembangan danPendidikan India Indonesia.

PEI hosted an English training camp for high school students run by

PRIIDE – Program for India Indonesia Development

and Education.

Community Education SupportDukungan Kepada Pendidikan Masyarakat

PEI mengadakan ‘Math Camp’ untuk siswa darisekolah-sekolah yang adadi sekitar kampus untukmeningkatkankemampuan merekadalam matematika yang untuk jurusan teknik.

PEI conducts a summer ‘Math Camp’ for

students of neighborhood schools to improve their proficiency

in this core subject for engineering.

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PT. Indo-Rama Synthetics Tbk participated in Best of India KNITE – Knowledge, IT, Engineering event 2016 held at Universitas Trisakti in Jakarta. Through this annual collaborative mentoring event and exhibition, Indorama shares information and expertise related to its sectors and operations with graduating students. Seen above is Mr. Arunesh Bhalla explaining details to Ambassador of India

Ms Nengcha Lhouvum.

PT. Indo-Rama Synthetics Tbk berpartisipasi dalam acara Best of India KNITE 2016 - Knowledge, IT, Engineering yang diselenggarakan di Universitas Trisakti di Jakarta. Melalui acara dan pameran

mentoring kolaboratif tahunan ini, Indorama berbagi informasi dan keahlian yang terkait dengan sektordan operasinya dengan mahasiswa tingkat akhir. Terlihat di atas adalah Bapak Arunesh Bhalla yang

menjelaskan informasi kepada Duta Besar India Ibu Nengcha Lhouvum.

HealthcareKesehatan

Access to quality healthcare on a mass scale remains a challenge in Indonesia.

Delayed and improper treatments adversely impact the poor. For example,

there are many cases of blindness across Java resulting from inadequate and timely

cataract operations. Indorama has stepped forward to assist in this vital area of healthcare. We periodically arrange

cataract treatment camps in collaboration with leading eye specialists from Singapore.

The response from communities and provincial governments across Java has

been appreciative but there is no greater satisfaction than seeing the smile that

follows restored eyesight. We sincerely thank A New Vision and the Lohia

Foundation in helping to drive this initiative.

Akses terhadap kesehatan berkualitas dalam skala besar tetap menjadi tantangan di Indonesia. Perawatan yang tertunda dan tidak benar berdampak buruk pada orang miskin. Contohnya, ada banyak kasus kebutaan di Jawa akibat operasi katarak yang tidak sesuai dan tepat waktu. Indorama telah melangkah maju untuk membantu bidang kesehatan yang vital ini. Kami secara berkala mengatur kamp pengobatan katarak bekerjasama dengan spesialis mata terkemuka dari Singapura. Tanggapan dari masyarakat dan pemerintah provinsi di Jawa sangat menghargai namun tidak ada kepuasan yang lebih besar daripada melihat senyum yang mengikuti penglihatan yang dipulihkan. Kami dengan tulus mengucapkan terima kasih kepada A New Vision dan the Lohia Foundation dalam membantu mendorong inisiatif ini.

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Community DevelopmentPengembangan Masyarakat

As a leading organization PT Indo-Rama Synthetics Tbk has been contributing to

the development of the nation for decades. We provide direct and indirect

employment to thousands, are export pioneers in various segments of our

business and contribute our fair share of taxes. However, in addition to being a

responsible corporate citizen we also want to see the communities around us prosper.

As part of our harmonious relationships with the local government and community,

we proactively participate in religious festivities, support local infrastructure

development and encourage Purwakarta’saspirations to being counted as one of the

country’s well developed regions.

Sebagai organisasi terkemuka PT Indo-Rama Synthetics Tbk telah berkontribusi terhadap pembangunan bangsa ini selama beberapa dekade. Kami memberikan perkerjaan secaralangsung maupun tidak langsung kepada ribuan orang, kami merupakan pelopor ekspor di berbagai segmen bisnis dan mengkontribusipajak kami secara adil. Selain menjadi warga perusahaan yang bertanggung jawab kami juga ingin melihat masyarakat sekitar kamimakmur. Sebagai bagian dari hubungan harmonis kami dengan pemerintah daerah dan masyarakat, kami secara proaktif berpartisipasi dalam perayaan keagamaan, mendukung pembangunan infrastruktur lokal dan mendorong aspirasi Purwakarta untuk menjadi salah satu daerah yang berkembang dengan baik di negara Indonesia.

43 people donated blood at the IRT

Campaka Unit on the 28th of January 2016.

67 people from the Polyester Division

donated blood at the on the 3rd of March 2016.

Kegiatan Donor Darahdi Divisi Polyester pada tanggal 3 Maret2016 yang diikuti oleh67 orang pendonor.

Kegiatan Donor Darahdi Unit IRT Campakapada tanggal 28 Januari 2016 yang diikuti oleh 43 orang pendonor.

22

Acara Buka Puasa Bersamadengan perwakilan Desa Kembangkuning dan Desa Cibinong

Breaking Fast together with representatives of Kembangkuning Village

and Cibinong Village

Khitanan Massal di PHBMass circumcision in PHB

Pemberian Bingkisan IdulFitri kepada masyarakatDesa Kembangkuning.

Gifting Eid packages to the people of

Kembangkuning Village.

Bantuan untuk renovasimusholla KODIM Purwakarta

Helping renovate Kodim Purwakarta

musholla

Bantuan Hewan Qurbanuntuk Desa Cibinong.

Providing Animal for Qurban at Cibinong

Village.

Bantuan PHB untukpembangunan masjid Al Busro Ciburial.

PHB assistance for the construction of Al Busro

Ciburial mosque.

Supporting Community Religious ActivitiesAktivitas Dukungan Keagamaan Masyarakat

23

Bantuan untuk perayaan HUT Kabupaten Purwakarta

Assisting PurwakartaRegency anniversary

celebration

Bantuan untuk acara Safari Ramadhan 1437 H, Pemerintah KabupatenPurwakarta.

Assisting Safari Ramadhan 1437 H,

Purwakarta Regency Government.

Bantuan untuk acara Safari Ramadhan 1437 H, Pemerintah KabupatenPurwakarta.

Assisting Safari Ramadhan 1437 H,

Purwakarta Regency Government.

Bantuan untuk KebersihanRW 08 DesaKembangkuning

Assistance for Cleaning RW 08 Desa

Kembangkuning

Bantuan Bahan Material Bangunan untuk tiga Desa(Bunder, Kembangkuningdan Cibinong)

Help in providing Material Building Materials for 3

Villages (Bunder, Kembangkuning & Cibinong)

Bantuan Beras untuk RW 01 Desa Cibinong.

Rice Aid for RW 01 Cibinong Village.

Supporting Local GovernmentDukungan Kepada Pemerintah Lokal

24

PT Indo-Rama Synthetics Tbk is conscious of managing the environmental impact of its

operations with utmost care. The company only selects technology that has advanced

eco features in terms of energy savings and pollution control. We have elaborate water and waste treatment systems to maximize

recycling and minimize discharge. The company adopts standards prescribed by the

World Bank that are more stringent than those adopted by the government of

Indonesia. The company has secured the PROPER rating of Blue from the Ministry of Environment regularly. It has also obtained

the latest certifications that testify the sustainability of its operations and

compliance with industry leading certification requirements.

PT Indo-Rama Synthetics Tbk sadar perlunyauntuk mengelola dampak lingkungan darioperasionalnya dengan sangat hati-hati. Perusahaan hanya memilih teknologi yang memiliki fitur ramah lingkungan yang canggihdalam hal penghematan energi danpengendalian pencemaran. Kami memilikisistem pengolahan air dan limbah yang komprehensif untuk memaksimalkan daurulang dan meminimalkan limbah. Perusahaan mengadopsi standar yang ditetapkan olehBank Dunia yang lebih ketat daripada yang diadopsi oleh pemerintah Indonesia. Perusahaan telah mendapatkan peringkatPROPER Biru dari Kementerian LingkunganHidup secara rutin. Perusahaan juga telahmendapatkan sertifikasi terbaru yang memberi kesaksian tentang keberlanjutanoperasinya dan kepatuhan terhadappersyaratan sertifikasi industri terkemuka.

EnvironmentLingkungan

Tree planting in the Spinning 9 Division of

Campaka IRT, on the 10th of February 2016

by Mr. Sri Prakash Lohia.

Planting 10 Trees in Campaka IRT Unit on the 18th of February

2016 as a form of the management’s

commitment to environmental conservation.

Planting of 50 trees at the Weaving Unit on the 26th of February

2016.

Penanaman Pohonoleh Menteri Perindustrian AljazairBapak AbdessalemBouchouareb padatanggal 4 Agustus2016.

Penanaman Pohondi area Spinning 9 Divisi IRT Campaka, pada tanggal 10 Februari 2016 olehBapak Sri Prakash Lohia.

Tree PlantingPenanaman Pohon

Kegiatan Penanaman50 Pohon di Unit Weaving pada tanggal26 Februari 2016

Kegiatan Penanaman10 Pohon di Unit IRT Campaka pada tanggal18 Februari 2016 sebagai bentukkomitmen manajementerhadap pelestarianlingkungan hidup.

Tree Planting by Algerian Minister of

Industry Mr. Abdessalem

Bouchouareb on 4th of August 2016.

25

26

Ecorama is a brand developed from Polyester products, that is, Post-consumer

resin, or abbreviated as PCR , and is the recycled product of reclaimed polyester polymer from used packaging material,

especially bottles that are not disposed of and then collected - separated and made into PCR flakes. Ecorama yarn is used as a raw material for clothing manufacture, as

well as industrial and textile automotive fabrics.

Ecorama merupakan merek daripengembangan produk Poliester yaitu Post-consumer resin atau disingkat dengan PCR merupakan hasil proses daur ulangpolyester polimer yang direklamasi daribahan kemasan bekas terutama botol yang tidak dibuang lalu dikumpulkan –dipisahkan dan dijadikan serpihan PCR. Benang Ecorama ini digunakan untukbahan membuat pakaian/industri/tekstilotomotif.

Eco-Friendly ProductsProduk Ramah Lingkungan

FuTuRe - PET resins is a brand developed from Polyester products, that is, Post-

consumer resin, or abbreviated as PCR, is the recycled product of recovered polyester

polymer from used packaging material, especially bottles that are not disposed of and then collected - separated and made

into PCR flakes. FuTuRe - PET resins are used to make branded bottled drinking water in

the United States.

FuTuRe – PET resins merupakan merek daripengembangan produk Polyester yaitu Post-consumer resin atau disingkat dengan PCR merupakan hasil proses daur ulang polyester polimer yang direklamasi dari bahankemasan bekas terutama botol yang tidakdibuang lalu dikumpulkan – dipisahkan dandijadikan serpihan PCR. FuTuRe – PET resins ini digunakan untuk membuat produk botolkemasan air minum yang terkenal di Amerika Serikat.

27

28

Replacing the conventional 40 Watt lamp tube to 20

Watt LED lamp tube.

Mengganti tabung lampu konvensional 40 Watt ke

tabung lampu LED 20 Watt.

Replacing conventional HPLN 250Watt lamps to

120Watt LED lights.

Mengganti lampu konvensional HPLN 250Watt

ke lampu LED 120Watt.

Installing On Grade Solar Panel with a 5000Watt

capacity on the roof of the PMC building.

Memasang On Grade Panel Surya kapasitas 5000Watt di

atas atap gedung PMC.

Installing new compressors with high efficiency and halting some medium

capacity compressors in Dept. Utility CP 1 & 3

Memasang kompresor baru dengan efisiensi tinggi dan

menghentikan beberapa kompresor kapasitas sedang

di Dept. Utility CP 1 & 3

Replacing the conventional HPLN 70Watt lamps to street

lamps that utilizes solar panels.

Mengganti lampu konvensional HPLN 70Watt

ke lampu jalan yang menggunakan panel surya.

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Energy ConservationPenghematan Energi

2016 Energy Efficiency Activities on Major Energy Consuming EquipmentKegiatan Efisiensi Energi Pada Peralatan Pengguna Energi Utama 2016

Activity DetailsDetail Kegiatan

Savings gainedPenghematan Yang Diperoleh

DescriptionKeterangan

KWH Gjoule

Polyester Division

Install New Compressor high efficiency & stop/stand by other comp running if any emergency required.

421.126,00 1516

Average consumption before installing new compressor 766.644KWH/Month, after install new compressor 556.082KWH/Month. Average Saving 210563Kwh/Month. Start Nov 2016.

Install Steam VAC HRSG (2016)

2.428.333 8742Install Steam VAC HRSG to other Electrical Ciller.

Install New Compressor high efficiency & stop/stand by other comp running if any emergency required.

375.548,00 1351

Average consumption before install new compressor 1.07.077KWH/Month, after install new Compressor 829.5032 KWH/Month. Average Saving 187.774 Kwh/Month. Started Nov 2016.

IRT Division

Chiller stop 1 unit jam 18:00 - 06:00 ( IRT ) before 565 KW after 367 KW saving 198Kw

998.200,00 3600Saving 142,600 KWH/Month Star From Jun to Dec 16 Total 998,200 KWH or 1Gwh IRT

Chilled Pump stop jam 18:00 - 06:00 (IRT) before 192Kw after 134 saving 58KW

294.483,00 1058,4

Saving 42,070 KWH/Month Star From Jun to Dec 16 stop chilled pp from 18.00 to 06.00 Total saving 294,483 KWH IRT

STOP CLP, Suction fan, FDP Stop (3,7 Kw ) From May 16

19.168,00 69Normal running 3.3Kw now stop saving 2.376Kwh/month

Spinning Division

Installation Inverter for optimization washer pump Ahu No.02/22 Kw (Running motor 50Hz to 33 Hz)

88688,88889 319,28Power saving by installing inverters at washer pump at AHU 2 Spinning SPG 1

Installation Inverter for optimization washer pump Ahu B3/22 Kw (Running motor 50Hz to 33 Hz)

83394,44444 300,22Power saving by installing inverters at washer pump at AHU B 3 SPG 3

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Company-wide Energy Efficiency ActivitiesAktivitas Penghematan Energi di Seluruh Perusahaan

31

2016 Energy Efficiency Activities on Major Energy Consuming Equipment (Cont’d)Kegiatan Efisiensi Energi Pada Peralatan Pengguna Energi Utama 2016 (bersambung)

Activity DetailsDetail Kegiatan

Savings gainedPenghematan Yang Diperoleh

DescriptionKeterangan

KWH GjouleSpinning Division (Cont’d)

Replace Chiller Mc Queymanual starting (STAR-DELTA) to Chiller High Efficiency (Starting with inverter) & including installation chiller pump with inverters

672358,3333 2420,49

Power saving due to replacing chiller with high efficiency and installed inverter on condenser pump in SPG 1

Installation Inverter for optimization washer pump Ahu Prep/22 Kw (Running motor 50Hz to 33 Hz)

80858,33333 291,09Power saving by installing inverters at washer pump at AHU Prep SPG 1

Installing inverters for optimization spray pump at Ring Frame and Preparatory AHU as per Room conditions at SPG 10/4

131513,8889 473,45

power saving by installing inverters for optimization evaporation & cond pump as per chiller capacity SPG 10

Installing inverters for optimization Cooling Tower LBC 1000 as per chiller capacity SPG 10

49391,66667 177,81Power saving by installing inverters for optimization Cooling Tower LBC 1000 as per chiller capacity SPG 10

Installing inverters for optimization spray pump at Ring Frame and Preparatory AHU as per Room conditions at SPG 10/4

126408,3333 455,07

Power saving by installing inverters for optimization spray pump at ring Frame and Preparatory AHU as per Room conditions at SPG 10

Control by running 15 kw motor instead of 30 Kw as per suction requirement for 3 nos cards of Modal cotton in Jingya filter at SPG 10/4

45361,11111 163,3

Power saving by running 15 kw motor instead of 30 Kw as per suction requirement for 3 nos cards of Modal cotton on Jingya filter at SPG 10

Stopping cascaded OHC saste collection fan of simplex in Line D Spg5

11472,22222 41,3Power saving by stopping cascaded OHC saste collection fan of simplex in line D SPG 5

Control Optimization of department conditions by stopping chiller water in winding area

26783,33333 96,42Power saving by optimization of department conditions by stopping chilled water in winding area ( SPG )

TOTAL (Energy Efficiency Activities on Major Energy Consuming Equipment)

5.853.088,56 21.074,83 5.85 Gwh

Other 2016 Energy Efficiency ActivitiesKegiatan Efisiensi Energi Lain 2016

Polyester Division

Replace conventional lamp

10.736,00 38,6496

Replace conventional lamp Mercury 250 Watt to LED 120Watt QTY 111 pcs saving 10.736 KWH (POLY)

Replace conventional lamp

17.295,00 62,262

Replace conventional lamp 36 Watt & 18 Watt to LED 18 Watt & 9 Watt QTY 1107 pcs saving in 17.295 KWH (POLY)

PMC Division

Install Solar Panel592,00 2,1312

INSTALL SOLAR PANEL ON GRADE CAP 5 KW SAVING 592 KWH (PMC)

IRT Division

Replace conventional lamp

45.023,00 162,0828

Replace conventional lamp 40 Watt to LED 21 Watt QTY 350 pcs get saving 45.023 KWH in 2016 cotton area (IRT)

Replace conventional lamp

26.286,00 94,6296

Replacement TL conventional 40 Watt to TL LED 21 Watt area ST 1 QTY 300 pcs get saving 26.286 KWH in 2016 (IRT)

Replace conventional lamp

5.265,00 18,954

Replacement TL conventional 40 Watt to TL LED 21 Watt area ST 1 QTY 350 pcs get saving 5.265 kwh in 2016 (IRT)

SPG Division

Replace conventional lamp1.920,00 6,912

Replace halogen lamp 50 watt to LED 5.5 watt Office saving 160 kwh/month (SPG)

Replace conventional lamp11.448,00 41,2128

Replace CFL lamp with LED in lobby SPG 123 & 6/7 saving 954 kwh/month

WVG Division

Modification Switch100.494,00 361,7784

Modification Switch TFO Lighting from manual to Auto saving 10.0494 Kwh/yrs (WVG)

Replace conventional lamp51.221,00 184,3956

Replacement conventional light to LED saving 51.221 Kwh/Yrs (WVG)

TOTAL (Other 2016 Energy Efficiency Activities) 270.280,00 973,008

GRAND TOTAL 6.123.368,56 22.047,84

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SafetyKeselamatan

Mock Drill in the context of SHE Month on

the 27th of April 2016.

Mock Drill dalam rangkaBulan K3 padatanggal 27 April 2016.

Evacuation drills on the 27th of

April 2016.

LatihanEvakuasi padatanggal 27 April 2016.

Safety Training for the PHB division

on the 21st to 22nd

of September 2016

Safety Training di divisi PHB 21 – 22 September 2016.

Joint fire drill with the Purwakarta Fire Department and PT.

Indonesia TarokoTextile on the 24th

of February 2016.

Latihan PemadamKebakaran bersamaDinas PemadamKebakaran KabupatenPurwakarta dan PT. Indonesia Taroko Textile pada tanggal 24 Februari 2016.

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35

Internationally, corporate sustainability is recognized by performance on three key

indicators – environment, social, governance or ESG. In order to coordinate

activities related to these areas and identify areas of improvement as well as learn from

best practice, the company conducts esgWISE training. This is delivered by

IndonesiaWISE and suggestions provided by participants are flagged to senior

management for review and implementation.

Secara internasional, keberlanjutanperusahaan diakui karena tiga indikatorutama - lingkungan, sosial, dan tatakelola atau ESG. Untukmengkoordinasikan kegiatan terkaitbidang ini dan untuk mengidentifikasiperbaikan serta belajar dari praktikterbaik, perusahaan melakukanpelatihan esgWISE. Pelatihan inidilaksanakan oleh IndonesiaWISE dansaran-saran yang diberikan oleh para peserta dicatat oleh manajemen senior untuk ditinjau dan diimplementasikan.

Annual esgWISE WorkshopWorkshop esgWISE tahunan

36

Indorama strives to create a conducive work environment for its employees. This is

achieved by a combination of cordial relationships, motivational training, family

get-togethers, celebration of milestones and recognition of strong performers. The

length of career of employees at Indorama is amongst the highest in industry and this is a result of the company’s cohesive work

culture.

Indorama berusaha menciptakanlingkungan kerja yang kondusif bagikaryawannya. Hal ini dicapai dengankombinasi hubungan baik, pelatihanmotivasi, kumpul bersama keluarga, merayakan prestasi perusahaan danpengakuan sebagai perusahaan berkinerjabagus. Masa kerja karyawan Indorama termasuk yang terpanjang di industri dan inimerupakan hasil budaya kerja perusahaanyang kohesif.

Gatherings and Celebrations

Employee WelfareKesejahteraan Karyawan

Acara Kumpul Bersama dan Perayaan

Penghargaan Masa KerjaKaryawan

Employee Lifetime Award

Kumpul Bersama Keluarga Unit Weaving

Family Gathering Weaving Unit

Kumpul Bersama KeluargaUnit Poliester 2016

Polyester Family Gathering 2016

Indorama Star Achiever Program Award

Penghargaan Program Star Achiever Indorama

37

IRT Dormitory Festival 2016 IRT Mess Festival 2016

Head Office Family Gathering 2016

Kumpul Bersama KeluargaKantor Pusat 2016

Knowledge competition during Polyester SHE month.Lomba Cerdas Cermat Bulan

K3 Polyester

Assessment Development Center (ADC)Program ADC

38

A key component of employee career development in Indorama is the Assessment Development Center

or ADC. Under this activity officers nominated for promotion are provided skills development training in values based interview skills, presentation skills,

group discussion, technical in-tray exercise, personality tests and confidence building. These are provided through an elaborate orientation program. Subsequently the officers are assessed by a panel of multi functional assessors with independent quality

assurance to ensure avoidance of bias. Indorama has been a pioneer in implementing ADC that has been

successfully conducted in 2016 by the HR Department in collaboration with IndonesiaWISE.

Komponen utama pengembangan karir karyawan di Indorama adalah Assessment Development Center atau ADC. Dalam kegiatan ini karyawan yang telahdipilih untuk promosi diberikan pelatihanpengembangan dalam keterampilan wawancaraberbasis nilai, keterampilan presentasi, diskusikelompok, latihan in-tray teknikal, tes kepribadiandan pengembangan kepercayaan. Ini dilakukanmelalui program orientasi yang komprehensif. Selanjutnya karyawan dinilai oleh tim penilai multi fungsi dengan jaminan kualitas independen untukmenghindari bias. Indorama telah menjadi pelopordalam menerapkan ADC yang berhasil dilakukanpada tahun 2016 oleh HR Department bekerjasamadengan IndonesianWISE.

ADC orientation Orientasi ADC

Actual ADC event Pelaksanaan ADC

39

Contact DetailsDetil Kontak

B.K. ShrivastavaPT. Indo-Rama Synthetics Tbk.

Kembang Kuning, Ubrug – JatiluhurP.O. Box 2, Purwakarta – 41101

Jawa Barat – IndonesiaPhone: 62.264.202311-17

Email: bkshrivastava@Indorama.comwww.indorama.com

Aliaman SaragihPT. Indo-Rama Synthetics Tbk.

Kembang Kuning, Ubrug – JatiluhurP.O. Box 2, Purwakarta – 41101

Jawa Barat – IndonesiaPhone: 62.264.202311-17

Email: aliaman@indorama.comwww.indorama.com

Content Copyright PT. Indo-Rama Synthetics Tbk.

Report Concept, Design, and Production by PT. IndonesiaWISE www.indonesiawise.com