SR Telkom 2012 Eng LoRes
Sustainability Report 2012
PT Telekomunikasi Indonesia, Tbk
Bringing the Sustainable
Digital Society
Laporan Keberlanjutan Sustainability Report 2009
PT TELEKOMUNIKASI INDONESIA, Tbk.
Bersama Anda
Menggenggam Dunia
Holding the World with You
PT TELEKOMUNIKASI INDONESIA Tbk
Kantor Pusat/Headquarters
GKP TELKOM
Jl. Japati No. 1
Bandung 40133
Tel.
Fax.
: (62-22) 452 7101
: (62-22) 424 0313
IDX
: TLKM
NYSE : TLK
LSE
: TKIA
2009
www.telkom-indonesia.com
the world in your hand
1
PT TELEKOMUNIKASI INDONESIA, Tbk.
Laporan Keberlanjutan
Sustainability Report
2010
Senantiasa Mewujudkan
Masa Depan Anda
Moving to
Sustainability
Sustaining Your Future
Sustainability Report 2011
PT TELEKOMUNIKASI INDONESIA, Tbk.
DISCLAIMER
This sustainability report has a number of forward looking statements, including expectations and future sustainability performance projections.
These disclosures will use a number of terms such as “commitment”, “believe”, “trust”, “hope”, “anticipate”, “estimate” “projecting”, or other
similar terms. Besides that, all disclosures who do not have historical facts can be categorized as a forward looking statement. Although we
believe that these expectations can be proven to be true. Forward looking statements will include identiication of risk and uncertainty due to
changes in the economic, social and environmental issues in Indonesia.
PERSONAL CONTACT (3.4)
If you wish to obtain more information regarding this report, please contact Investor Relations, Grha Citra Caraka on 5th loor, Jl. Jend. Gatot
Subroto Kav. 52, Jakarta 12710, Indonesia. Tel: (62-21) 521 5109, Fax: (62-21) 522 0500 or email: investor@telkom.co.id. This document can also
be downloaded via our website http://www.telkom.co.id.
ImpRovIng tHe
economy
enHancIng
customeR
satIsfactIon
Human
ResouRces
Development
sustaInabIlIty
goveRnance
about telkom
Bringing the Sustainable
Digital Society
With the increase of Indonesia’s economic growth, Telkom which
began it’s line of business in telecommunications, is now the largest
Indonesian Telecommunication, Information, Media, Edutainment
and Services company which is also known as TIMES.
The TIMES business which has been developed by Telkom is aimed
at supporting the growth and development of Indonesian digital
society, which goes inline with the increased access of Device
Network Application /”DNA” which is based on current Information
& Communication Technology.
In the context of sustainability, the business which is being managed
by Telkom is not only aimed at current generation, but is aimed at
supporting future generations in fulfilling their needs. On these basis,
the TIMES business which is being managed by Telkom must avoid
negative impact towards the environment and society and facilitate
the development of a sustainable digital society.
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
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Contents
BRINgINg THE SuSTAINABLE
DIgITAL SOCIETy
1
Responses to climate change
43
Improving product Quality and services
45
participation in mitigation greenhouse gas emissions 46
SuSTAINABILITy PERfORMANCE HIgHLIgHTS 4
promoting Healthy and environmentally
economic performance Highlights
4
friendly culture
49
environmental performance Highlights
6
environmental expenditures and awards Received
49
social performance Highlights
8
IMPROVINg THE ECONOMy
50
supporting economic growth in Indonesia
52
CALEIDOSCOPE
12
VISION, MISSION AND
STRATEgIC INITIATIVES
14
SIgNIfICANT EVENTS
18
AwARDS AND CERTIfICATION
20
REPORT fROM THE PRESIDENT DIRECTOR
24
ABOuT THIS REPORT
28
SHARINg wITH THE COMMuNITy
30
educational and training assistance
32
Religious worship assistance
36
supporting Improved economic conditions for
stakeholders
53
contributions to state Revenues
55
supporting Regional economic growth
55
community economic empowerment
56
Disbursement of partnership funds
59
Development partners success stories
61
ENHANCINg CuSTOMER SATISfACTION
62
assistance for the Development of Infrastructure
and general facilities
36
assistance for Health facilities and Infrastructure
38
Disaster Relief
38
ENVIRONMENTAL RESPONSIBILITy
40
the state of the telecommunications Industry in
Indonesia
64
the telecommunications act, universal service
obligation (“uso”) and competition
64
competition and pricing
66
prioritizing customer satisfaction
66
marketing strategies and customer privacy
68
Distribution channels for telkom’s products and
environmental policy
42
environmental Impact
42
climate change: Implications, Risks and
business opportunities
2
43
services
69
marketing communications
69
Improving the Quality of service
70
Handling of customer complaints
70
customer satisfaction survey
71
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
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HuMAN RESOuRCES DEVELOPMENT
72
sustaInabIlIty
goveRnance
about telkom
the board of Directors and committees under the
board of Directors
92
mechanisms for appointment to the board of
commissioners and the board of Directors
92
Remuneration of members of the board of
competency-based Human Resources management
75
education and training
75
Recruitment
76
telkom corpu
77
career Development
77
competitive Remuneration
78
gender equality and Remuneration
78
Pensions and Pension Beneits
79
early Retirement program
79
employee Health management
79
post Retirement Health services
79
extra curricular activities
79
occupational safety and Health (“osH”)
80
employee awards
80
osH training and accident levels
81
Industrial Relations
83
Human Rights
83
Human Rights training and awards
83
freedom of association
83
preventing corruption
84
Information technology-based Human Resources
management system
84
transformation of the working culture
84
Employee Proile
85
employee turnover
87
awards in the field of Human Resources
87
SuSTAINABILITy gOVERNANCE
88
corporate governance organizational structure
90
the board of commissioners and
committees under the board of commissioners
90
commissioners and board of Directors
93
Avoiding Conlict of Interest
93
Risk management and precautionary approaches
93
business ethics and corporate culture
94
procedures for oversight by the board of
commissioners
94
membership in Industrial associations and
other organizations
95
Implementation of International standards
95
mechanisms for providing Input to the board of
Directors
95
Relations with stakeholders
95
ABOuT TELkOM
98
Corporate Head Oice
100
products and services
100
operational structure and business groups
102
operational area and market share
104
scale of Reporting
105
changes in 2012
105
ADDITIONAL INfORMATION
106
Independent assurance statement
108
gRI application level check statement
110
gRI g3.1 Index
111
glossary
114
feedback form
117
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Sustainability Performance Highlights
ECONOMIC Performance Highlights
10
Economic Value generated
Economic Value Distributed
(Rp in billion)
(Rp in billion)
69,109
11
71,900
12
10
77,882
49,455
11
49,796
12
Distribution of Partnership funds
(Rp in billion)
(Rp in billion)
19,654
22,104
17,584
10
11
12
4
302.70
12
343.87
Total number of
Development Partners
(Rp in billion)
12,871
283.77
11
Contribution to the State
10
60,298
Economic Value Retained
11
12
10
10
14,780
15,874
9,918
11
9,189
12
9,346
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Sustainable Performance Highlights
ImpRovIng tHe
economy
343.87
Rp
billion
number of soft loan
distribution
10billion
Rp
for Development Partners
entrepreneurship scholarships
Distribution of Partnership
funds to Business Clusters
which have around
1,388
Development
Partners
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ENvIRONMENTal Performance Highlights
Implementation of paperless oice. Around
9,395 rim of paper has been saved with the
use of the online oice note.
Washing oice vehicles and watering oice
plants with recycled water.
Increasing a healthy and friendly work
culture through the bike to work and earth
hour program.
Energy eiciency on 2,976 units of BTS
which are located outside the building and
are small in size and do not need a cooler
and relay station.
6
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
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about telkom
23.9a
Energy saving by switching the use of
TDM to softswitch technology which
is placed at 23 location and around 28
trunk gates
carbon emission
reduction
961.39ton
per year by the use of
renewable energy
Planting
±16,000
trees in an area of
36 Ha
Planting
50,000
Mangrove planting
at panaikang maros beach, south sulawesi as part of realizing
the telkom go green action program
Hand-over of
1,000
teak trees and super
mango trees
as telkom’s participation in the green initiative of
the city of tasikmalaya
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Sustainable Performance Highlights
59.9a
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SOCIal Performance Highlights
Sharing with the community
Distribution of Economic and Environmental Community Development Fund
Training and Education
worship facilities
(Rp billion)
(Rp billion)
10
10
9.89
11
11
14.77
12
19.96
6.50
12
7.21
Public facilities
Natural Disaster Victims
(Rp billion)
(Rp billion)
10
10
3.49
11
11
5.28
12
10
5.55
0.49
12
6.19
1.41
Public Health
Environmental Protection
(Rp billion)
(Rp billion)
10
2.75
11
1.73
11
4.65
12
7.80
12
BuMN Peduli Program
(Rp billion)
10
2.00
11 10.85
12
8
2.02
48.62
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
2.44
0.96
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sustaInabIlIty
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about telkom
Sustainable Performance Highlights
ImpRovIng tHe
economy
Training and Education assistance
• bagimu guru kupersembahkan: four batches has
been conducted with around 253 participants
• i-cHat application: update content database to
around
7,000 words
• co-op program: iltering 474 college students
from 65 State Universities and Private Universities
assistance for Worship Facilities
• Participated in constructing and renovating
554 worship facilities in Indonesia
assistance for Public Health Facilities
• Application of e-health in Jakarta and Yogyakarta
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assistance in Public Facilities
• Placing WiFi network in 100,000 schools in
Jakarta for the “Develop a Smarter Indonesia”
• Program “Listrik Mandiri Rakyat” program for around
155 families in the city of Tasikmalaya
•
Develop cyber cities in Banyuwangi,
Banjarbaru, Manado, Gresik, Kutai,
Tasikmalaya
Natural Disaster victims relief
•
27 activities to provide assistance to natural disaster
victims
10
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
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Human
ResouRces
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sustaInabIlIty
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about telkom
Senior
Management
Middle
Management
Ikhtisar Kinerja Keberlanjutan
Human Resources
344 43
3,207
412
9,324
Supervisor
7,685
Others
2,441
2,227
Telkom
Subsidiaries
•
•
21,013 employees followed the competence development training
Rp158 billion for training and education at average
Rp8 million per employee
• The development of Telkom CorpU to create highly skilled people and leaders
• Provide Human Resource Appreciation to
227 persons and 34 internal
and external units of Telkom
•
25 business units received the 2012 Zero Accident Award
Customer Satisfaction
CSI
Wholesale & international
customer segment
CLI
83.25%
Wholesale & international
customer segment
Enterprise customer
segment
91.35%
Enterprise customer
segment
Business customer
segment
90.98%
Business customer
segment
Personal customer
segment
81.39%
Personal customer
segment
82.85%
88.00%
84.92%
67.07%
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Caleidoscope
12
1856-1882
1980
on october 23, 1856, the colonial government
of the Netherlands-East Indies operated the irst
electromagnetic telegraph service in Indonesia
which connected batavia (Jakarta) and buitenzorg
(bogor).
International telecommunication has been taken
over by pt Indonesian satellite corporation
(“Indosat”).
1906-1965
1991
the netherlands colonial government formed
a state agency to control postal and
telecommunication services in Indonesia. In 1965
the seperation between postal services and
telecommunication was being made and two
state-owned enterprises pn pos dan giro and pn
telekomunikasi where given the lead to manage
these services.
the name of pt peRumtel changed to
pt
telekomunikasi
Indonesia
or
telkom
with a operating business divided into two
telecommunication areas (“wItel”). twelve
wItel then changed into seven Regional Divisions
(“DIvRe”), which are Division I sumatra, Division II
Jakarta and surroundings, Division III west Java,
Division Ivcentral Java and DI yogyakarta, Division
v east Java, Division vI kalimantan and Division
vII east Indonesia.
1974
1995
pn telekomunikasi is divided into two divisions,
which are pt Industri telekomunikasi Indonesia
(”pt IntI”) whcich produces telecommunication
equipment and perusahaan umum telekomunikasi
(“peRumtel”) which provides services for
domestic and international telecommunication.
Telkom conducted it’s Intial Public Ofering (“IPO”)
on november, 14 1995 at the Jakart stock exchange
and surabaya stock exchange. In may 26, 1995,
telkom established a subsidiary that handles
celullar telecommunications, telkomsel.
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
ImpRovIng tHe
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1999
2009
law no.36/1999 on telecommunication which
is efective in September 2000 has facilitated
the entry of new players in the industry which
developed competitive business behaviour in the
telecommunication industry.
telkom transformed from a Infocomm company
to a tIme organizing company. telkom’s new look
was introduced to the public with a new logo and
tagline. “the world in your hand’’.
2001
2010
telkom acquired 35% of Indosat shares at telkomsel
thus making it the majority shareholder at the
company with around 77.7% onwership. Indosat
at the other hand took over 22.5% of telkom
shares at satelindo and 37.7% of telkom shares at
pt aplikanusa lintasarta. In the same time telkom
undersea fibre optic cable project JakalaDema
which connected the islands of Java, kalimantan,
sulawesi, Denpasar and mataram has been
completed in april 2010.
about telkom
exclusive rights as single non moving telephone
service has been revoked.
2002
2011
telkom released 12.7 % of it’s shares at
telkomsel to singapore telecom mobile pte ltd
(“singtel mobile”).
telecommunication infrastructure reformation through
the telkom nusantara super Highway project which is
aimed at connecting nusantara starting from sumatra
to papua, and the true broadband accessproject which
provides internet access with a capacity of 20-100 mbps
to all customers in Indonesia.
2004
2012
telkom launched a International Direct Dial (“IDD”)
call for non-mobile telephones.
Broadband penetration through Wii Develoment
in order to realize Indonesia Digital network
(“IDn”).
change of business portofolio from tIme to
become tImes (telecommunication, Information,
media, edutainment & services) which is aimed at
business value creation.
the formation of the telkom corporate university
to develop telkom Human Resources which has the
competency to compete in international business.
(from competence to commerce).
2005
satelit telkom-2 has been launched to replace all
satellite transmitted services which was previously
served by palapa b-4. this launch made it the
eigth satellite launched by telkom including the
palapa a-1.
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vision,
Mission and
Strategic
Initiatives
vISION
To
become
a
leading
Telecommunication, Information,
Media, Edutainment and Services
(“TIMES”) player in the region.
MISSION
• To
provide
TIMES
services with excellent
quality at competitive
price.
• To be the role model
as the best managed
Indonesian corporation.
The vision and mission statement is based on decree of the Board of Commissioners of
PT Telekomunikasi Indonesia, Tbk No.09/kEP/Dk/2012 dated May 30, 2012
14
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
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Corporate
Culture
Human
ResouRces
Development
sustaInabIlIty
goveRnance
The New Telkom Way
Basic
Belief
Always The Best
Core
values
Solid, Speed, Smart
Key
Behaviours
about telkom
Imagine, Focus, Action
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Strategic
Initiatives
1
2
3
4
5
center of excellence
aligning the business structure and
portfolio management
facilitating broadband
implementation through service
convergence
management of wireless portfolio
Integrating the telkom group’s
ecosystem solutions
The strategic initiatives are based on decree of the Board of Commissioners of PT Telekomunikasi Indonesia, Tbk
No.09/kEP/Dk/2012/RHS dated 30 May 2012.
16
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
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6
7
8
9
10
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Development
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Investing in information technology
services
Investing in media and edutainment
businesses
Investing in the wholesale business
and strategic international business
opportunities
maximizing asset value on interrelated businesses
Integrating
next
generation
networks (“ngn”) and operational
support system, business support
system,
customer
support
system and enterprise relations
management (“obce”) to achieve
costs improvements
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Signiicant Events
01
02
03
04
05
06
01
MARCH
1.
Through the handicraft and jewelry expo which is
named the Adikriya Indonesia 2012, CDC Telkom
has been continuously sending eight development
partners.
2. Telkom placed two of it’s development partners
in a National Exhibition developed by the Dewan
Kerajinan Nasional (“Dekranas”) in conjunction
with a CSR potential program from each provincial
Dekranasda, municipality throughout Indonesia and
State Owned Enterprises.
3. Forum Silaturahmi Isteri Karyawan Telkom
(“FORSIKATEL”) of the Corporate oice engages
with the female community at the Telkom Oice
Japati Bandung to increase creative expertise
through cooking and sewing training.
4. CDC Telkom organizes a of air SME Business at
the STSI Telkom Soekarno Hatta Bandung through
an activity which is supported by 60 Telkom
Development Partners of the Bandung Raya Area.
18
02
07
APRIL
1.
The inauguration of the Telkom Jatinegara Data
Center as the irst Telkom Green Data Center,
which has environmentally friendly features such
as Zero Depletion Refrigerant, Zero Depletion FAP,
Environment Safe Materials and Energy Saving.
2. Telkom with around seven Development Partners
attends the International Handicraft Trade Fair 2012
(“INACRAFT 2012).
03
MAy
CSR Telkom brings back a bright experience for the
people of Kampung Pojok Desa Tanjungsari, Sub Region
Salopa, Region Tasikmalaya via a program named
Peoples Independent Electricity for around 151 families
received a battery powered electricity.
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
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04
06
07
JuNE
AuguST
SEPTEMBER
1.
1.
1.
Signing of a Cooperation Agreement
on the Incubation and Development
of ICT between Telkom and
18
communities
and
software
development companies which are
joined in the Bandung Digital Valley
and is aimed at supporting digital
creative industry in Indonesia.
2. Telkom symbolicaly handed over
1,000 Dutch teak treens and Super
Mango trees to the State Minister of
Stated-Owned Enterprises Dahlan
Iskan in conjunction with tree planting
at the Cimulu riverbed in front of the
Plasa Telkom Tasikmalaya.
3. CSR Telkom Group conducted a social
action with a massive circumcision
for 1,000 children of poor families
around Jabodetabek which marked
the start of a CSR pilar in the ield
of Culture and Politeness by the
Director for Human Capital and
General Afairs (“HCGA”), Priyantono
Rudito.
05
JuLI
Telkom Group is ready to develop a
healthy Device Network Application
ecosystem
so
that
Indonesia
can obtain the best broadband
technology. This commitment has
been delivered in the executive
meeting with Apple Co-Founder,
Steve Wozniak in Jakarta.
2. Telkom organized a Co-Op 2012
program as CSR program policy
for education carrying a theme
of “Optimizing Co-op beneit to
enhancing competitive advantage for
corporate and other stakeholders”.
Telkom and IBM Indonesia have
agreed upon to cooperate in
the development of Information
Technology (“IT”) in Indonesia, in
particular providing the best IT
solutions for the Corporate and Small
and Medium Enterprise (“SME”).
2. Telkom
dispatched
3,250
homecoming travellers to a number
of cities in Java in a Mudik Asyik
Telkom Group 2012 program which
consists of frontliner outlet, sales
force and Telkomsel authorized
dealers, Telkom Flexi, Speedy and
PT Telkom business partners in
Jabodetabek as a form of gratitude
towards their cooperation.
3. Telkom cooperates with the IAIN
Syekh Nurjati Cirebon rectorate
and organized a staple need cheap
market
by
distributing
2,000
packages with a value of Rp110,000
per package which is being sold to
the poor and less fortunate people at
around Rp35,000/package.
4. Telkom submitted six development
partners in the Indonesia Fashion &
Craft 2012 expo.
1.
08
about telkom
The launch of Telkom CorpU as a
attraction to the center of excellence
to all staf.
2. With the collaboration between
Yayasan Desa Sejahtera Indonesia
(“YDSI”), Telkom allocated 50,000
mangrove trees which is worth
Rp25,000,000,- through a Go Green
Action program to a number of critical
points on the Panaikang Beach, Maros,
South Sulawesi.
08
OCTOBER
The face of Telkom CSR for partnership
is being given through it’s development
partners at the INDOCRAFT annual expo,
a exhibition that showcases original
Indonesian handicrafts.
09
DECEMBER
1.
Telkom CDC has coordinated with
students of the Garut University
(“UNIGA”), STKIP Garut, STIE Yasa
Anggana and KODIM 0611 Garut
which synergicaly implements the
BUMN Membangun Desa program
in a form of rebuilding poor peoples
houses in Kampung Bojong Desa
Jatisari, Kecamatan Karangpawitan,
Garut.
2. Telkom
CSR
pillar
Partnership
conducts
a
working
capital
enhancement in the form of a revolving
fund towards 51 SME in the area of
East Priangan (Tasikmalaya, Ciamis,
Banjar and SIngaparna) which can
reach a number of Rp 1,587,200,000.
09
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Signiicant events
ImpRovIng tHe
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ResponsIbIlIty
awards and Certiication
awards (2.10)
JANuARy
telkomvision, our paytv, received the great performing award in Digital
media award survey, as the best market Drive in marketing award 2011
survey, and recognized by Indonesia museum of world Records (“muRI”)
as the pay tv with the highest sales growth (800% within a period of one
year).
fEBRuARy
1. top brand award for speedy, flexi postpaid and flexi prepaid in the
top brand award 2012 organized by frontier consulting group and
marketing magazine.
2. second-place award in the child and maternal Health in the private
sector for the implementation of i-cHat (I can Hear and talk/a language
learning application for the deaf) from the Oice of Special Afairs of
the president of Republic Indonesia.
3. award silver winner Inma 2012 for “kIlau” internal magazine for
creative cover page, in the Ipma competition organized by the worker
union of the press.
4. call center service excellence award (“ccsea”) 2012 for call center
147 telkom in telecommunication and the Internet services provider
categories, event organized by care center for customer satisfaction &
loyalty (“care-ccsl”) and service excellence magazine.
MARCH
1. International recognition as the best environmental Responsibility
and the best Investor Relation professional in the 2nd asian excellence
Recognition award 2012 from the Hong kong-based corporate
governance asia magazine.
2. award as leading company in promoting entrepreneurship, for
telkom’s commitment in its role as good corporate citizen through the
implementation of partnership program with micro, small & medium
enterprises and community development program from ministry of
cooperative and sme.
20
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
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awards and Certiication
APRIL
1. award as the best cDma operator for telkom through its telkom flexi
product, as well as the best gsm operator and best operator of the
year for telkomsel, a subsidiary of telkom, in selular award 2012 event
organized by selular magazine, Handphone tabloid and selular online
tabloid from global selular media group.
2. award in Indonesia enterprise Risk management award 2012 from
business Review magazine.
3. Award as the Most Committed for CSR 2012 from the La Toi School of
csR.
MAy
award as the world’s biggest public companies in forbes global 2000
polling by forbes Indonesia magazine.
JuNE
silver award in the strategy and tactical category and bronze award in the
special award category, at the bumn marketing award 2012 organized
by bumn track magazine with the support of bumn marketeers club and
markplus Inc.
JuLy
1. gold award in the telecommunication Industry category, as well as
citations in Top 100 Worldwide, Top 50 Regional in Asia-Paciic, and
special achievement award – the most engaging annual Report, in 2011
vision awards annual Report competition organized by the league of
american communications professionals (“lacp”), san Diego, united
states.
2. Recognized among the 8 best finalists in the Indonesian most admired
knowledge enterprise (“make”) study 2012 organized by Dunamis
organization services.
3. award as sales management champion and as communication
management champion, in the markplus Insight award 2012 organized
by marketeers magazine in cooperation with pt JIexpo as the organizer
of Jakarta fair and the research institution markplus Insight.
4. citation of social business Innovation award for telkom for empowering
Information and communication technology community and award as
the best green ceo in the telecommunication sector for arief yahya,
in the appreciation night warta ekonomi event organized by warta
ekonomi magazine.
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RepoRt fRom tHe
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ResponsIbIlIty
SEPTEMBER
awards for most consistent Dividend policy and best strategic corporate
social Responsibility in the 6th best financial Institution awards and 2nd
corporate awards in 2012 organized by alpha southeast asia magazine.
OCTOBER
1. awards as the best for all criteria, the best for employee net promoter
score, the best for Human capital Initiative employee self service, and
the best for ceo commitment, in the Indonesia Human capital study
(“IHcs”) 2012 organized by Dunamis Human capital and business
Review magazine.
2. award as Indonesia broadband service provider of the year 2012 in
Indonesia excellence awards 2012 event organized by frost & sullivan.
3. award as the best Innovation in the marketing award 2012 event
organized by marketing magazine.
NOVEMBER
1. award as best corporate overall in the 4th corporate governance annual
survey conducted by the Indonesian Institute for corporate Directorship
(“IIcD”).
2. award in the telecommunication Industry sector in the economic
challenges award 2012 organized by metro tv.
3. award as the best ceo on survival management for arief yahya,
president Director of telkom and an award as the best corporate for the
year 2012 for telkom, in the anugerah business Review 2012 organized
by business Review magazine.
DECEMBER
1. award as best sustainability Report 2011 in the services sector category
as well as runner up position for best website 2012, in the Indonesia
sustainability Reporting award (“IsRa”) 2012 competition organized by
the national center for sustainability Reporting (“ncsR”).
2. award as best ceo of most Innovative soe 2012 for arief yahya,
president Director of telkom, in the anugerah bumn 2012 event
organized by bumn track magazine in coordination with forum Humas
bumn and cIs school of Innovation.
3. award as corporate governance perception Index the most trusted
companies 2012 as a highly trusted company held by the Indonesian
Institute for corporate governance (“IIcg”) in collaboration with swa
magazine based on a survey of investors, analysts and fund managers.
4. awards for the best e-corp, the best cIo and the best future It leader
2012 in the Indonesia Digital summit 2012 event, by swa magazine.
5. award as the preferred corporation of newspaper workers unions
(“sps”) 2012 in the 1st sps-Indonesia pR summit 2012.
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Certiication
1. ISO 9001:2008 Certiication
Issued to pt telekomunikasi Indonesia tbk, Divisi consumer service
barat, by tuv Rheinland cert gmbH in 2011. valid until 2013.
2. ISO 9001:2008 Certiication
Issued to pt telekomunikasi Indonesia tbk, Divisi telkom flexi, by
tuv Rheinland cert gmbH in 2011. valid until 2014.
3. ISO/IEC 27001:2005 Certiication
Issued to pt telekomunikasi Indonesia tbk, grha citra caraka
Building, Divisi Infratel M loor and Divisi Access 7th loor, by TUV
Rheinland Japan ltd, in 2012. valid until 2015.
4. AS/NZS ISO 9001:2008 Certiication
Issued to pt administrasi medika (“admedika”), telkom’s indirect
subsidiary, by Veriication New Zealand Limited, in 2012. Valid until
2015.
5. Customer Center of Expertise Certiication
Issued to pt telekomunikasi Indonesia tbk, by sap, in 2012. valid
until 2013.
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
23
HIgHlIgHt
REPORT fROM THE
PRESIDENT DIRECTOR
about tHIs RepoRt
sHaRIng wItH tHe
communIty
envIRonmental
ResponsIbIlIty
Report from The President
Director (1.1), (1.2)
“We will continue to support global
eforts to control climate change,
which is the most signiicant
environmental issue in the context
of sustainability.”
24
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Report from the President Director
ImpRovIng tHe
economy
arief Yahya
President Director
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
25
HIgHlIgHt
REPORT fROM THE
PRESIDENT DIRECTOR
about tHIs RepoRt
Report from the President Director
Dear Stakeholders,
The world we live in is facing an increasingly signiicant
environmental crisis. Although a range of global
initiatives to contain this crisis have been implemented,
carbon dioxide emissions have yet to be reduced
to levels considered by scientists to be safe. As a
result, extreme climatic conditions are an increasingly
frequent occurrence across the world, including in
Indonesia. To address this challenge, it is vital that all
parties, including all elements of the community, the
government, and private enterprise, work together.
Through such cooperative eforts, we will ensure the
ongoing sustainability of the planet and its inhabitants,
thereby ensuring that future generations will be able to
live in a healthier world.
As a business operation, Telkom is strongly committed
to playing a role in overcoming this environmental crisis
through the implementation of strategic measures to
control the level of carbon dioxide emissions resulting
from its corporate activities. As an accountable
company, we are committed to utilizingour resources to
ensure that we conduct our corporate activities in an
environmentally friendly manner.
Environmentally friendly Operations
Up to 2,876 Base Transceiver Stations (“BTS”) located
outdoors and operated by Telkom utilize solar cell and
micro-hydro energy, resulting in reductions in carbon
emissions of 961.39 tons per year. In addition, we are
encouraging the thorough implementation of the
paperless oice concept throughout businesses within
Indonesia through the provision of business applications
to facilitate this practice. For the installation of new
air conditioning units, we only utilize equipment with
environmentally friendly coolants that meet international
standards.
To the fullest extent possible, we are committed
to conserving natural resources through the
implementation of the principles of “3R” (Recycle,
Reuse, Reduce). These principles form an important
basis for a number of pro-environment policies. Other
manifestations of our commitment to the principles of
3R include our installation of wastewater management
units at our head oices in Jakarta and Bandung, with
wastewater being used to wash operational vehicles
and to maintain gardens.
We also manifest our commitment to preserving the
environment through cooperative endeavors with
communities to implement reforestation programs.
26
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So far, the programs have involved the planting of more
than 16,000 trees throughout Indonesia, the planting of
more than 50,000 mangrove seedlings in the Panaikang
Maros beach area in South Sulawesi, and the provision
of more than 1,000 Dutch teak and super mango
seedlings to Tasikmalaya’s city reforestation program.
In addition, we have facilitated the establishment of
a number of garden parks, equipped with cuttingedge communications facilities, in a number of regions
throughout Indonesia.
Support for Economic Development
The Company strives to ensure the achievement
of economic sustainability through the creation of
economic value for the beneit of all stakeholders. In 2012,
the economic value created by Telkom amounted to a
total value of Rp77.88 trillion, representing an increase
of 7.31% over the igure of Rp71.9 trillion achieved in 2011.
The total economic value distributed to stakeholders
increased dramatically in 2012, by 21% compared to the
previous year.
The dramatic increase in the distributed economic
value demonstrates that Telkom’s business activities
have a signiicant impact in terms of improving the
economic conditions of all stakeholders, including
suppliers, employees, central and regional governments,
and members of the community. The total value of the
Company’s contributions to state revenues in the form
of dividends, dues, and taxes amounted to Rp15.88
trillion, representing an increase of 7% over the igure of
Rp14.78 trillion recorded in the previous year.
Telkom also plays a signiicant role in improving regional
economic conditions through the payment of regional
taxes, the provision of employment opportunities, the
provision of guidance to small to medium enterprises
and cooperatives, the provision of TIMES facilities and
by creating economic opportunities for members of
the community through their involvement in businesses
activities that supportTelkom’s operations. All of these
beneits have a multiplier efect in terms of promoting
regional economic growth.
The Social Dimensions of Sustainability
As a company whose growth has been driven by its
harmonious relationships with all stakeholders, including
employees and members of communities surrounding
its operations, we strive to increase our achievements
in terms of social sustainability, in areas such as labor
management, human rights, product accountability, and
community development.
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Human
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As a manifestation of our commitment to human rights,
we refrain from all forms of discrimination related to
ethnicity, religion, group ailiation or gender in the
management of our human resources. We actively
support diversity and provide equal opportunities for
all employees to advance their careers. Throughout
2012, 21,013 employees were provided with training, at
an average cost of Rp8 million per employee. We also
established the Telkom Corporate University to develop
high quality leadership skills. In the area of occupational
safety and health, we successfully retained our zero
accident record. In order to facilitate the growth of the
Company, we continue to develop and improve the
quality of the services that we provide our customers, as
demonstrated by increasingly high customer satisfaction
indicators over the years.
As a company that operates throughout Indonesia,
including its most remote regions, Telkom also plays a
signiicant role in supporting the government’s eforts
to improve the conditions and quality of life of marginal
members of the community, to reduce poverty, to
improve standards of health, and to provide public
infrastructure and facilities of an adequate standard.
In all of these areas, Telkom plays a signiicant role
in the achievement of the government’s Millennium
Development Goals (“MDGs”) 2015, through its
participation in Community Development and
Environmental Management Programs (“PKBL”). In
2012,we provided assistance in the areas of education
and training to a total value of Rp19.96 billion; for the
development of infrastructure and facilities, including
religious worship facilities, to a total value of Rp13.40
billion; for the development of health facilities, to a total
value of Rp7.80 billion; and, through our participation
in the State Owned Enterprises Care (“BUMN Peduli”)
program, for community development and disaster
relief, to a total value of Rp50.03 billion.
Moving Towards the future
We will continue to support the global community’s
endeavors to control climate change, endeavors which
are of primary importance in the context of achieving
sustainability. Global warming, climate change,
and extreme weather have the potential to impact
Telkom’s business through their potential to damage
telecommunications networks and infrastructure,
which in turn has the potential to negatively impact the
economic value that the Company generates.
sustaInabIlIty
goveRnance
about telkom
Thus, we will continue to intensify the measures we have
implemented to reduce carbon dioxide emissions and
to conserve natural resources. In the short term, we will
continue to reine systems and procedures related to
the management of Telkom’s environmental footprint
as a basis for the further implementation of policies
that integrate environmental management into the
Company’s core strategies.
Conclusion
We would like to express our gratitude to our
shareholders, particularly the Ministry for State-Owned
Enterprises, who continue to provide direction and
guidance to improve Telkom’s sustainability performance.
We would also like to express our appreciation for the
advice and guidance provided by Telkom’s Board of
Commissioners, which enabled the Company to improve
its sustainability performance in 2012.
Finally, the Board of Directors would like to express its
gratitude and appreciation to all employees for their
hard work and eforts towards achieving a higher level
of sustainability performance this year.
Moving into 2013, let us all work even harder to
improve the economic conditions of all stakeholders by
conducting our business operations in an environmentally
friendly manner and by intensifying our commitment
to improving the socio-economic conditions of both
employees and all members of the community.
Jayalah Indonesia!
Jayalah Telkom Indonesia!
arief Yahya
President Director/CEO
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
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Report from the President Director
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ABOuT THIS REPORT
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About This Report
PT Telekomunikasi Indonesia’s (“Telkom” or
“we”) 2012 Sustainability Report (“the Report”)
is the seventh such report, following the
publication of the irst report in 2006. Amongst
other purposes, this report is presented in
compliance with Article 66, Paragraph 2C of Law
Number 40, 2007, concerning Limited Liability
Companies. This act mandates the publication
of an annual report covering all activities related
to a company’s fulillment of its Environmental
and Social Responsibility (“ESR”).
According to Article 1 of this Law, ESR is deined as
“a company’s commitment to participation in sustainable
economic development to improve the quality of life
and the environmental conditions of the company
itself, the communities amongst which it operates, and
the broader public”.
through this report, we are taking the opportunity
to inform all stakeholders of telkom’s performance in
terms of achieving economic, environmental, and social
sustainability throughout 2012. portions of the material
presented in this report were included in telkom’s 2012
annual Report.
In the preparation of this report, we have endeavored
to adhere to the reporting guidelines established by the
global Reporting Initiative (“gRI”). these guidelines are
broadly acknowledged and have achieved widespread
acceptance by the international business community.
Speciically, these reporting guidelines are known as
the gRI guidelines for the preparation of sustainability
Reports version 3.1 (“gRI g3.1”).
28
Reporting Period (3.1, 3.2, 3.3)
this Report covers the period from 1 January 2012
to 31 December 2012. the preceding report, the 2011
sustainability Report, was published in June 2012.
telkom publishes its sustainability Report each
year to provide a solid basis for the evaluation of
management’s economic, environmental and social
performance, in addition to information related to its
inancial performance, which is presented in the Annual
financial statement.
Deining Report Content (3.5)
In the selection of the topics addressed in the report,
we primarily adhere to the principle of materiality. In
this context, materiality is taken to refer to issues of
relevance to the conduct of telkom’s business and to
issues that have a signiicant impact on and relevance
to stakeholders.
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
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In determining the contents of this report, we involve stakeholders through their participation in discussion forums,
which are attended by representatives of a full range of stakeholder groups. the outputs from these forums can be
seen from the 2012 materiality map, which is presented below.
High
community economic
empowerment
service Quality
Energy Eiciency
education
and training
community
Development
employee
Beneits
sustainable
supply chain
competitiveness
occupational
Health and safety
state budget
Low
Signiicant importane
to Stakeholders
Medium
Human
Rights
carbon emission
mitigation
Low
Medium
High
Signiicant importance to Telkom
Report Boundary and Data Measurement Techniques
(3.6 - 3.9)
Data related to telkom’s sustainability performance and
presented in this report relate to telkom as a holding
company. the report does not include data related
to the sustainability performance of the company’s
subsidiary entities. financial data, including data related
to economic value received and distributed (ec1), is
presented in the form of consolidated data covering
the company’s subsidiaries, as is standard practice
according to established inancial reporting guidelines
prevailing in Indonesia.
We use the techniques for the measurement of inancial
data established by the Indonesian financial accounting
standards (pernyataan standar akuntansi keuangan,
psak). for the measurement of sustainability data,
we use internationally accepted data measurement
techniques and units, such as gigajoules to measure units
of energy and so on. the quantitative data presented
in this report utilizes the principle of comparability,
covering a period of at least two consecutive years,
thereby enabling readers of the report to conduct a
meaningful analysis of trends.
Changes from Previous years’ Reports (3.10, 3.11)
During the period covered by this report, there have
been no fundamental changes to telkom’s business
structure. In this context, ‘fundamental change’ refers
to company actions such as acquisitions, mergers,
corporate restructuring, and downsizing. similarly,
there have been no signiicant changes to the report
limits, scope or measurement techniques since the
publication of the previous year’s report.
gRI Content Index and Assurance (3.12, 3.13)
we have included references to the relevant gRI index
in red brackets at each relevant page to enable readers
of the report to determine the speciic GRI indicators
applied throughout this report. a complete list of these
gRI indicators can be seen on page 111-113.
gRI g3.1 indicators addressed in this report refer to
issues relevant to the conduct and implementation
of telkom’s business. a number of gRI g3.1 indicators
are not addressed in this report because they are
considered not to be of material signiicance or relevant
to telkom’s business. In addition, a number of gRI g3.1
indicators are not addressed because the required data
compilation system has not yet been fully implemented.
telkom’s management is endeavoring to ensure that
such data is available for future reports, as part of our
ongoing eforts to improve and reine our sustainability
accounting systems and procedures.
this Report was externally assured by mazars in the
form of limited assurance, whose assurance statement is
presented on page 108-109. following a gRI application
level checked by the national center for sustainability
Reporting (“ncsR”), this report has been declared to
meet the criteria for a gRI application level of a+; see
page 110.
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SHARINg wITH THE
COMMuNITy
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32
38
Educational and Training
Assistance
Assistance for Health
facilities and Infrastructure
36
38
Religious worship Assistance
Disaster Relief
36
Assistance for the
Development of
Infrastructure and general
facilities
Sharing
with the
Community
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31
HIgHlIgHt
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“telkom shares through a
number of programs intended
to improve the quality of life
of members of the community.
telkom continues to develop its
social responsibility program to
foster the abilities and creativity
of the community and to
support eforts to preserve the
environment in cooperation with
the community.”
Telkom has intensiied its commitment to the community
through its Community Development Programs.
These programs are implemented in accordance
with government policies and initiatives to alleviate
poverty, to foster community independence, to improve
community capacities and to increase the level of
corporate participation in the achievement of the MDG’s
2015.
All of the Company’s community development projects
are intended to meet the needs of the community
following asse
PT Telekomunikasi Indonesia, Tbk
Bringing the Sustainable
Digital Society
Laporan Keberlanjutan Sustainability Report 2009
PT TELEKOMUNIKASI INDONESIA, Tbk.
Bersama Anda
Menggenggam Dunia
Holding the World with You
PT TELEKOMUNIKASI INDONESIA Tbk
Kantor Pusat/Headquarters
GKP TELKOM
Jl. Japati No. 1
Bandung 40133
Tel.
Fax.
: (62-22) 452 7101
: (62-22) 424 0313
IDX
: TLKM
NYSE : TLK
LSE
: TKIA
2009
www.telkom-indonesia.com
the world in your hand
1
PT TELEKOMUNIKASI INDONESIA, Tbk.
Laporan Keberlanjutan
Sustainability Report
2010
Senantiasa Mewujudkan
Masa Depan Anda
Moving to
Sustainability
Sustaining Your Future
Sustainability Report 2011
PT TELEKOMUNIKASI INDONESIA, Tbk.
DISCLAIMER
This sustainability report has a number of forward looking statements, including expectations and future sustainability performance projections.
These disclosures will use a number of terms such as “commitment”, “believe”, “trust”, “hope”, “anticipate”, “estimate” “projecting”, or other
similar terms. Besides that, all disclosures who do not have historical facts can be categorized as a forward looking statement. Although we
believe that these expectations can be proven to be true. Forward looking statements will include identiication of risk and uncertainty due to
changes in the economic, social and environmental issues in Indonesia.
PERSONAL CONTACT (3.4)
If you wish to obtain more information regarding this report, please contact Investor Relations, Grha Citra Caraka on 5th loor, Jl. Jend. Gatot
Subroto Kav. 52, Jakarta 12710, Indonesia. Tel: (62-21) 521 5109, Fax: (62-21) 522 0500 or email: investor@telkom.co.id. This document can also
be downloaded via our website http://www.telkom.co.id.
ImpRovIng tHe
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Bringing the Sustainable
Digital Society
With the increase of Indonesia’s economic growth, Telkom which
began it’s line of business in telecommunications, is now the largest
Indonesian Telecommunication, Information, Media, Edutainment
and Services company which is also known as TIMES.
The TIMES business which has been developed by Telkom is aimed
at supporting the growth and development of Indonesian digital
society, which goes inline with the increased access of Device
Network Application /”DNA” which is based on current Information
& Communication Technology.
In the context of sustainability, the business which is being managed
by Telkom is not only aimed at current generation, but is aimed at
supporting future generations in fulfilling their needs. On these basis,
the TIMES business which is being managed by Telkom must avoid
negative impact towards the environment and society and facilitate
the development of a sustainable digital society.
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
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Contents
BRINgINg THE SuSTAINABLE
DIgITAL SOCIETy
1
Responses to climate change
43
Improving product Quality and services
45
participation in mitigation greenhouse gas emissions 46
SuSTAINABILITy PERfORMANCE HIgHLIgHTS 4
promoting Healthy and environmentally
economic performance Highlights
4
friendly culture
49
environmental performance Highlights
6
environmental expenditures and awards Received
49
social performance Highlights
8
IMPROVINg THE ECONOMy
50
supporting economic growth in Indonesia
52
CALEIDOSCOPE
12
VISION, MISSION AND
STRATEgIC INITIATIVES
14
SIgNIfICANT EVENTS
18
AwARDS AND CERTIfICATION
20
REPORT fROM THE PRESIDENT DIRECTOR
24
ABOuT THIS REPORT
28
SHARINg wITH THE COMMuNITy
30
educational and training assistance
32
Religious worship assistance
36
supporting Improved economic conditions for
stakeholders
53
contributions to state Revenues
55
supporting Regional economic growth
55
community economic empowerment
56
Disbursement of partnership funds
59
Development partners success stories
61
ENHANCINg CuSTOMER SATISfACTION
62
assistance for the Development of Infrastructure
and general facilities
36
assistance for Health facilities and Infrastructure
38
Disaster Relief
38
ENVIRONMENTAL RESPONSIBILITy
40
the state of the telecommunications Industry in
Indonesia
64
the telecommunications act, universal service
obligation (“uso”) and competition
64
competition and pricing
66
prioritizing customer satisfaction
66
marketing strategies and customer privacy
68
Distribution channels for telkom’s products and
environmental policy
42
environmental Impact
42
climate change: Implications, Risks and
business opportunities
2
43
services
69
marketing communications
69
Improving the Quality of service
70
Handling of customer complaints
70
customer satisfaction survey
71
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
ImpRovIng tHe
economy
enHancIng
customeR
satIsfactIon
Human
ResouRces
Development
HuMAN RESOuRCES DEVELOPMENT
72
sustaInabIlIty
goveRnance
about telkom
the board of Directors and committees under the
board of Directors
92
mechanisms for appointment to the board of
commissioners and the board of Directors
92
Remuneration of members of the board of
competency-based Human Resources management
75
education and training
75
Recruitment
76
telkom corpu
77
career Development
77
competitive Remuneration
78
gender equality and Remuneration
78
Pensions and Pension Beneits
79
early Retirement program
79
employee Health management
79
post Retirement Health services
79
extra curricular activities
79
occupational safety and Health (“osH”)
80
employee awards
80
osH training and accident levels
81
Industrial Relations
83
Human Rights
83
Human Rights training and awards
83
freedom of association
83
preventing corruption
84
Information technology-based Human Resources
management system
84
transformation of the working culture
84
Employee Proile
85
employee turnover
87
awards in the field of Human Resources
87
SuSTAINABILITy gOVERNANCE
88
corporate governance organizational structure
90
the board of commissioners and
committees under the board of commissioners
90
commissioners and board of Directors
93
Avoiding Conlict of Interest
93
Risk management and precautionary approaches
93
business ethics and corporate culture
94
procedures for oversight by the board of
commissioners
94
membership in Industrial associations and
other organizations
95
Implementation of International standards
95
mechanisms for providing Input to the board of
Directors
95
Relations with stakeholders
95
ABOuT TELkOM
98
Corporate Head Oice
100
products and services
100
operational structure and business groups
102
operational area and market share
104
scale of Reporting
105
changes in 2012
105
ADDITIONAL INfORMATION
106
Independent assurance statement
108
gRI application level check statement
110
gRI g3.1 Index
111
glossary
114
feedback form
117
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
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HIgHLIgHT
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pResIDent DIRectoR
sHaRIng wItH tHe
communIty
about tHIs RepoRt
envIRonmental
ResponsIbIlIty
Sustainability Performance Highlights
ECONOMIC Performance Highlights
10
Economic Value generated
Economic Value Distributed
(Rp in billion)
(Rp in billion)
69,109
11
71,900
12
10
77,882
49,455
11
49,796
12
Distribution of Partnership funds
(Rp in billion)
(Rp in billion)
19,654
22,104
17,584
10
11
12
4
302.70
12
343.87
Total number of
Development Partners
(Rp in billion)
12,871
283.77
11
Contribution to the State
10
60,298
Economic Value Retained
11
12
10
10
14,780
15,874
9,918
11
9,189
12
9,346
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
enHancIng
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satIsfactIon
Human
ResouRces
Development
sustaInabIlIty
goveRnance
about telkom
Sustainable Performance Highlights
ImpRovIng tHe
economy
343.87
Rp
billion
number of soft loan
distribution
10billion
Rp
for Development Partners
entrepreneurship scholarships
Distribution of Partnership
funds to Business Clusters
which have around
1,388
Development
Partners
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
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pResIDent DIRectoR
about tHIs RepoRt
sHaRIng wItH tHe
communIty
envIRonmental
ResponsIbIlIty
ENvIRONMENTal Performance Highlights
Implementation of paperless oice. Around
9,395 rim of paper has been saved with the
use of the online oice note.
Washing oice vehicles and watering oice
plants with recycled water.
Increasing a healthy and friendly work
culture through the bike to work and earth
hour program.
Energy eiciency on 2,976 units of BTS
which are located outside the building and
are small in size and do not need a cooler
and relay station.
6
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
ImpRovIng tHe
economy
enHancIng
customeR
satIsfactIon
Human
ResouRces
Development
sustaInabIlIty
goveRnance
about telkom
23.9a
Energy saving by switching the use of
TDM to softswitch technology which
is placed at 23 location and around 28
trunk gates
carbon emission
reduction
961.39ton
per year by the use of
renewable energy
Planting
±16,000
trees in an area of
36 Ha
Planting
50,000
Mangrove planting
at panaikang maros beach, south sulawesi as part of realizing
the telkom go green action program
Hand-over of
1,000
teak trees and super
mango trees
as telkom’s participation in the green initiative of
the city of tasikmalaya
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
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Sustainable Performance Highlights
59.9a
HIgHLIgHT
RepoRt fRom tHe
pResIDent DIRectoR
sHaRIng wItH tHe
communIty
about tHIs RepoRt
envIRonmental
ResponsIbIlIty
SOCIal Performance Highlights
Sharing with the community
Distribution of Economic and Environmental Community Development Fund
Training and Education
worship facilities
(Rp billion)
(Rp billion)
10
10
9.89
11
11
14.77
12
19.96
6.50
12
7.21
Public facilities
Natural Disaster Victims
(Rp billion)
(Rp billion)
10
10
3.49
11
11
5.28
12
10
5.55
0.49
12
6.19
1.41
Public Health
Environmental Protection
(Rp billion)
(Rp billion)
10
2.75
11
1.73
11
4.65
12
7.80
12
BuMN Peduli Program
(Rp billion)
10
2.00
11 10.85
12
8
2.02
48.62
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
2.44
0.96
enHancIng
customeR
satIsfactIon
Human
ResouRces
Development
sustaInabIlIty
goveRnance
about telkom
Sustainable Performance Highlights
ImpRovIng tHe
economy
Training and Education assistance
• bagimu guru kupersembahkan: four batches has
been conducted with around 253 participants
• i-cHat application: update content database to
around
7,000 words
• co-op program: iltering 474 college students
from 65 State Universities and Private Universities
assistance for Worship Facilities
• Participated in constructing and renovating
554 worship facilities in Indonesia
assistance for Public Health Facilities
• Application of e-health in Jakarta and Yogyakarta
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
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HIgHLIgHT
RepoRt fRom tHe
pResIDent DIRectoR
about tHIs RepoRt
sHaRIng wItH tHe
communIty
envIRonmental
ResponsIbIlIty
assistance in Public Facilities
• Placing WiFi network in 100,000 schools in
Jakarta for the “Develop a Smarter Indonesia”
• Program “Listrik Mandiri Rakyat” program for around
155 families in the city of Tasikmalaya
•
Develop cyber cities in Banyuwangi,
Banjarbaru, Manado, Gresik, Kutai,
Tasikmalaya
Natural Disaster victims relief
•
27 activities to provide assistance to natural disaster
victims
10
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
ImpRovIng tHe
economy
enHancIng
customeR
satIsfactIon
Human
ResouRces
Development
sustaInabIlIty
goveRnance
about telkom
Senior
Management
Middle
Management
Ikhtisar Kinerja Keberlanjutan
Human Resources
344 43
3,207
412
9,324
Supervisor
7,685
Others
2,441
2,227
Telkom
Subsidiaries
•
•
21,013 employees followed the competence development training
Rp158 billion for training and education at average
Rp8 million per employee
• The development of Telkom CorpU to create highly skilled people and leaders
• Provide Human Resource Appreciation to
227 persons and 34 internal
and external units of Telkom
•
25 business units received the 2012 Zero Accident Award
Customer Satisfaction
CSI
Wholesale & international
customer segment
CLI
83.25%
Wholesale & international
customer segment
Enterprise customer
segment
91.35%
Enterprise customer
segment
Business customer
segment
90.98%
Business customer
segment
Personal customer
segment
81.39%
Personal customer
segment
82.85%
88.00%
84.92%
67.07%
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
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sHaRIng wItH tHe
communIty
about tHIs RepoRt
envIRonmental
ResponsIbIlIty
Caleidoscope
12
1856-1882
1980
on october 23, 1856, the colonial government
of the Netherlands-East Indies operated the irst
electromagnetic telegraph service in Indonesia
which connected batavia (Jakarta) and buitenzorg
(bogor).
International telecommunication has been taken
over by pt Indonesian satellite corporation
(“Indosat”).
1906-1965
1991
the netherlands colonial government formed
a state agency to control postal and
telecommunication services in Indonesia. In 1965
the seperation between postal services and
telecommunication was being made and two
state-owned enterprises pn pos dan giro and pn
telekomunikasi where given the lead to manage
these services.
the name of pt peRumtel changed to
pt
telekomunikasi
Indonesia
or
telkom
with a operating business divided into two
telecommunication areas (“wItel”). twelve
wItel then changed into seven Regional Divisions
(“DIvRe”), which are Division I sumatra, Division II
Jakarta and surroundings, Division III west Java,
Division Ivcentral Java and DI yogyakarta, Division
v east Java, Division vI kalimantan and Division
vII east Indonesia.
1974
1995
pn telekomunikasi is divided into two divisions,
which are pt Industri telekomunikasi Indonesia
(”pt IntI”) whcich produces telecommunication
equipment and perusahaan umum telekomunikasi
(“peRumtel”) which provides services for
domestic and international telecommunication.
Telkom conducted it’s Intial Public Ofering (“IPO”)
on november, 14 1995 at the Jakart stock exchange
and surabaya stock exchange. In may 26, 1995,
telkom established a subsidiary that handles
celullar telecommunications, telkomsel.
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
ImpRovIng tHe
economy
enHancIng
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satIsfactIon
Human
ResouRces
Development
sustaInabIlIty
goveRnance
1999
2009
law no.36/1999 on telecommunication which
is efective in September 2000 has facilitated
the entry of new players in the industry which
developed competitive business behaviour in the
telecommunication industry.
telkom transformed from a Infocomm company
to a tIme organizing company. telkom’s new look
was introduced to the public with a new logo and
tagline. “the world in your hand’’.
2001
2010
telkom acquired 35% of Indosat shares at telkomsel
thus making it the majority shareholder at the
company with around 77.7% onwership. Indosat
at the other hand took over 22.5% of telkom
shares at satelindo and 37.7% of telkom shares at
pt aplikanusa lintasarta. In the same time telkom
undersea fibre optic cable project JakalaDema
which connected the islands of Java, kalimantan,
sulawesi, Denpasar and mataram has been
completed in april 2010.
about telkom
exclusive rights as single non moving telephone
service has been revoked.
2002
2011
telkom released 12.7 % of it’s shares at
telkomsel to singapore telecom mobile pte ltd
(“singtel mobile”).
telecommunication infrastructure reformation through
the telkom nusantara super Highway project which is
aimed at connecting nusantara starting from sumatra
to papua, and the true broadband accessproject which
provides internet access with a capacity of 20-100 mbps
to all customers in Indonesia.
2004
2012
telkom launched a International Direct Dial (“IDD”)
call for non-mobile telephones.
Broadband penetration through Wii Develoment
in order to realize Indonesia Digital network
(“IDn”).
change of business portofolio from tIme to
become tImes (telecommunication, Information,
media, edutainment & services) which is aimed at
business value creation.
the formation of the telkom corporate university
to develop telkom Human Resources which has the
competency to compete in international business.
(from competence to commerce).
2005
satelit telkom-2 has been launched to replace all
satellite transmitted services which was previously
served by palapa b-4. this launch made it the
eigth satellite launched by telkom including the
palapa a-1.
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
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about tHIs RepoRt
sHaRIng wItH tHe
communIty
envIRonmental
ResponsIbIlIty
vision,
Mission and
Strategic
Initiatives
vISION
To
become
a
leading
Telecommunication, Information,
Media, Edutainment and Services
(“TIMES”) player in the region.
MISSION
• To
provide
TIMES
services with excellent
quality at competitive
price.
• To be the role model
as the best managed
Indonesian corporation.
The vision and mission statement is based on decree of the Board of Commissioners of
PT Telekomunikasi Indonesia, Tbk No.09/kEP/Dk/2012 dated May 30, 2012
14
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
ImpRovIng tHe
economy
enHancIng
customeR
satIsfactIon
Corporate
Culture
Human
ResouRces
Development
sustaInabIlIty
goveRnance
The New Telkom Way
Basic
Belief
Always The Best
Core
values
Solid, Speed, Smart
Key
Behaviours
about telkom
Imagine, Focus, Action
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pResIDent DIRectoR
about tHIs RepoRt
sHaRIng wItH tHe
communIty
envIRonmental
ResponsIbIlIty
Strategic
Initiatives
1
2
3
4
5
center of excellence
aligning the business structure and
portfolio management
facilitating broadband
implementation through service
convergence
management of wireless portfolio
Integrating the telkom group’s
ecosystem solutions
The strategic initiatives are based on decree of the Board of Commissioners of PT Telekomunikasi Indonesia, Tbk
No.09/kEP/Dk/2012/RHS dated 30 May 2012.
16
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
ImpRovIng tHe
economy
6
7
8
9
10
enHancIng
customeR
satIsfactIon
Human
ResouRces
Development
sustaInabIlIty
goveRnance
about telkom
Investing in information technology
services
Investing in media and edutainment
businesses
Investing in the wholesale business
and strategic international business
opportunities
maximizing asset value on interrelated businesses
Integrating
next
generation
networks (“ngn”) and operational
support system, business support
system,
customer
support
system and enterprise relations
management (“obce”) to achieve
costs improvements
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HIgHLIgHT
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pResIDent DIRectoR
about tHIs RepoRt
sHaRIng wItH tHe
communIty
envIRonmental
ResponsIbIlIty
Signiicant Events
01
02
03
04
05
06
01
MARCH
1.
Through the handicraft and jewelry expo which is
named the Adikriya Indonesia 2012, CDC Telkom
has been continuously sending eight development
partners.
2. Telkom placed two of it’s development partners
in a National Exhibition developed by the Dewan
Kerajinan Nasional (“Dekranas”) in conjunction
with a CSR potential program from each provincial
Dekranasda, municipality throughout Indonesia and
State Owned Enterprises.
3. Forum Silaturahmi Isteri Karyawan Telkom
(“FORSIKATEL”) of the Corporate oice engages
with the female community at the Telkom Oice
Japati Bandung to increase creative expertise
through cooking and sewing training.
4. CDC Telkom organizes a of air SME Business at
the STSI Telkom Soekarno Hatta Bandung through
an activity which is supported by 60 Telkom
Development Partners of the Bandung Raya Area.
18
02
07
APRIL
1.
The inauguration of the Telkom Jatinegara Data
Center as the irst Telkom Green Data Center,
which has environmentally friendly features such
as Zero Depletion Refrigerant, Zero Depletion FAP,
Environment Safe Materials and Energy Saving.
2. Telkom with around seven Development Partners
attends the International Handicraft Trade Fair 2012
(“INACRAFT 2012).
03
MAy
CSR Telkom brings back a bright experience for the
people of Kampung Pojok Desa Tanjungsari, Sub Region
Salopa, Region Tasikmalaya via a program named
Peoples Independent Electricity for around 151 families
received a battery powered electricity.
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
enHancIng
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Human
ResouRces
Development
sustaInabIlIty
goveRnance
04
06
07
JuNE
AuguST
SEPTEMBER
1.
1.
1.
Signing of a Cooperation Agreement
on the Incubation and Development
of ICT between Telkom and
18
communities
and
software
development companies which are
joined in the Bandung Digital Valley
and is aimed at supporting digital
creative industry in Indonesia.
2. Telkom symbolicaly handed over
1,000 Dutch teak treens and Super
Mango trees to the State Minister of
Stated-Owned Enterprises Dahlan
Iskan in conjunction with tree planting
at the Cimulu riverbed in front of the
Plasa Telkom Tasikmalaya.
3. CSR Telkom Group conducted a social
action with a massive circumcision
for 1,000 children of poor families
around Jabodetabek which marked
the start of a CSR pilar in the ield
of Culture and Politeness by the
Director for Human Capital and
General Afairs (“HCGA”), Priyantono
Rudito.
05
JuLI
Telkom Group is ready to develop a
healthy Device Network Application
ecosystem
so
that
Indonesia
can obtain the best broadband
technology. This commitment has
been delivered in the executive
meeting with Apple Co-Founder,
Steve Wozniak in Jakarta.
2. Telkom organized a Co-Op 2012
program as CSR program policy
for education carrying a theme
of “Optimizing Co-op beneit to
enhancing competitive advantage for
corporate and other stakeholders”.
Telkom and IBM Indonesia have
agreed upon to cooperate in
the development of Information
Technology (“IT”) in Indonesia, in
particular providing the best IT
solutions for the Corporate and Small
and Medium Enterprise (“SME”).
2. Telkom
dispatched
3,250
homecoming travellers to a number
of cities in Java in a Mudik Asyik
Telkom Group 2012 program which
consists of frontliner outlet, sales
force and Telkomsel authorized
dealers, Telkom Flexi, Speedy and
PT Telkom business partners in
Jabodetabek as a form of gratitude
towards their cooperation.
3. Telkom cooperates with the IAIN
Syekh Nurjati Cirebon rectorate
and organized a staple need cheap
market
by
distributing
2,000
packages with a value of Rp110,000
per package which is being sold to
the poor and less fortunate people at
around Rp35,000/package.
4. Telkom submitted six development
partners in the Indonesia Fashion &
Craft 2012 expo.
1.
08
about telkom
The launch of Telkom CorpU as a
attraction to the center of excellence
to all staf.
2. With the collaboration between
Yayasan Desa Sejahtera Indonesia
(“YDSI”), Telkom allocated 50,000
mangrove trees which is worth
Rp25,000,000,- through a Go Green
Action program to a number of critical
points on the Panaikang Beach, Maros,
South Sulawesi.
08
OCTOBER
The face of Telkom CSR for partnership
is being given through it’s development
partners at the INDOCRAFT annual expo,
a exhibition that showcases original
Indonesian handicrafts.
09
DECEMBER
1.
Telkom CDC has coordinated with
students of the Garut University
(“UNIGA”), STKIP Garut, STIE Yasa
Anggana and KODIM 0611 Garut
which synergicaly implements the
BUMN Membangun Desa program
in a form of rebuilding poor peoples
houses in Kampung Bojong Desa
Jatisari, Kecamatan Karangpawitan,
Garut.
2. Telkom
CSR
pillar
Partnership
conducts
a
working
capital
enhancement in the form of a revolving
fund towards 51 SME in the area of
East Priangan (Tasikmalaya, Ciamis,
Banjar and SIngaparna) which can
reach a number of Rp 1,587,200,000.
09
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
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Signiicant events
ImpRovIng tHe
economy
HIgHLIgHT
RepoRt fRom tHe
pResIDent DIRectoR
about tHIs RepoRt
sHaRIng wItH tHe
communIty
envIRonmental
ResponsIbIlIty
awards and Certiication
awards (2.10)
JANuARy
telkomvision, our paytv, received the great performing award in Digital
media award survey, as the best market Drive in marketing award 2011
survey, and recognized by Indonesia museum of world Records (“muRI”)
as the pay tv with the highest sales growth (800% within a period of one
year).
fEBRuARy
1. top brand award for speedy, flexi postpaid and flexi prepaid in the
top brand award 2012 organized by frontier consulting group and
marketing magazine.
2. second-place award in the child and maternal Health in the private
sector for the implementation of i-cHat (I can Hear and talk/a language
learning application for the deaf) from the Oice of Special Afairs of
the president of Republic Indonesia.
3. award silver winner Inma 2012 for “kIlau” internal magazine for
creative cover page, in the Ipma competition organized by the worker
union of the press.
4. call center service excellence award (“ccsea”) 2012 for call center
147 telkom in telecommunication and the Internet services provider
categories, event organized by care center for customer satisfaction &
loyalty (“care-ccsl”) and service excellence magazine.
MARCH
1. International recognition as the best environmental Responsibility
and the best Investor Relation professional in the 2nd asian excellence
Recognition award 2012 from the Hong kong-based corporate
governance asia magazine.
2. award as leading company in promoting entrepreneurship, for
telkom’s commitment in its role as good corporate citizen through the
implementation of partnership program with micro, small & medium
enterprises and community development program from ministry of
cooperative and sme.
20
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
ImpRovIng tHe
economy
enHancIng
customeR
satIsfactIon
Human
ResouRces
Development
sustaInabIlIty
goveRnance
about telkom
awards and Certiication
APRIL
1. award as the best cDma operator for telkom through its telkom flexi
product, as well as the best gsm operator and best operator of the
year for telkomsel, a subsidiary of telkom, in selular award 2012 event
organized by selular magazine, Handphone tabloid and selular online
tabloid from global selular media group.
2. award in Indonesia enterprise Risk management award 2012 from
business Review magazine.
3. Award as the Most Committed for CSR 2012 from the La Toi School of
csR.
MAy
award as the world’s biggest public companies in forbes global 2000
polling by forbes Indonesia magazine.
JuNE
silver award in the strategy and tactical category and bronze award in the
special award category, at the bumn marketing award 2012 organized
by bumn track magazine with the support of bumn marketeers club and
markplus Inc.
JuLy
1. gold award in the telecommunication Industry category, as well as
citations in Top 100 Worldwide, Top 50 Regional in Asia-Paciic, and
special achievement award – the most engaging annual Report, in 2011
vision awards annual Report competition organized by the league of
american communications professionals (“lacp”), san Diego, united
states.
2. Recognized among the 8 best finalists in the Indonesian most admired
knowledge enterprise (“make”) study 2012 organized by Dunamis
organization services.
3. award as sales management champion and as communication
management champion, in the markplus Insight award 2012 organized
by marketeers magazine in cooperation with pt JIexpo as the organizer
of Jakarta fair and the research institution markplus Insight.
4. citation of social business Innovation award for telkom for empowering
Information and communication technology community and award as
the best green ceo in the telecommunication sector for arief yahya,
in the appreciation night warta ekonomi event organized by warta
ekonomi magazine.
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HIgHLIgHT
RepoRt fRom tHe
pResIDent DIRectoR
about tHIs RepoRt
sHaRIng wItH tHe
communIty
envIRonmental
ResponsIbIlIty
SEPTEMBER
awards for most consistent Dividend policy and best strategic corporate
social Responsibility in the 6th best financial Institution awards and 2nd
corporate awards in 2012 organized by alpha southeast asia magazine.
OCTOBER
1. awards as the best for all criteria, the best for employee net promoter
score, the best for Human capital Initiative employee self service, and
the best for ceo commitment, in the Indonesia Human capital study
(“IHcs”) 2012 organized by Dunamis Human capital and business
Review magazine.
2. award as Indonesia broadband service provider of the year 2012 in
Indonesia excellence awards 2012 event organized by frost & sullivan.
3. award as the best Innovation in the marketing award 2012 event
organized by marketing magazine.
NOVEMBER
1. award as best corporate overall in the 4th corporate governance annual
survey conducted by the Indonesian Institute for corporate Directorship
(“IIcD”).
2. award in the telecommunication Industry sector in the economic
challenges award 2012 organized by metro tv.
3. award as the best ceo on survival management for arief yahya,
president Director of telkom and an award as the best corporate for the
year 2012 for telkom, in the anugerah business Review 2012 organized
by business Review magazine.
DECEMBER
1. award as best sustainability Report 2011 in the services sector category
as well as runner up position for best website 2012, in the Indonesia
sustainability Reporting award (“IsRa”) 2012 competition organized by
the national center for sustainability Reporting (“ncsR”).
2. award as best ceo of most Innovative soe 2012 for arief yahya,
president Director of telkom, in the anugerah bumn 2012 event
organized by bumn track magazine in coordination with forum Humas
bumn and cIs school of Innovation.
3. award as corporate governance perception Index the most trusted
companies 2012 as a highly trusted company held by the Indonesian
Institute for corporate governance (“IIcg”) in collaboration with swa
magazine based on a survey of investors, analysts and fund managers.
4. awards for the best e-corp, the best cIo and the best future It leader
2012 in the Indonesia Digital summit 2012 event, by swa magazine.
5. award as the preferred corporation of newspaper workers unions
(“sps”) 2012 in the 1st sps-Indonesia pR summit 2012.
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Certiication
1. ISO 9001:2008 Certiication
Issued to pt telekomunikasi Indonesia tbk, Divisi consumer service
barat, by tuv Rheinland cert gmbH in 2011. valid until 2013.
2. ISO 9001:2008 Certiication
Issued to pt telekomunikasi Indonesia tbk, Divisi telkom flexi, by
tuv Rheinland cert gmbH in 2011. valid until 2014.
3. ISO/IEC 27001:2005 Certiication
Issued to pt telekomunikasi Indonesia tbk, grha citra caraka
Building, Divisi Infratel M loor and Divisi Access 7th loor, by TUV
Rheinland Japan ltd, in 2012. valid until 2015.
4. AS/NZS ISO 9001:2008 Certiication
Issued to pt administrasi medika (“admedika”), telkom’s indirect
subsidiary, by Veriication New Zealand Limited, in 2012. Valid until
2015.
5. Customer Center of Expertise Certiication
Issued to pt telekomunikasi Indonesia tbk, by sap, in 2012. valid
until 2013.
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
23
HIgHlIgHt
REPORT fROM THE
PRESIDENT DIRECTOR
about tHIs RepoRt
sHaRIng wItH tHe
communIty
envIRonmental
ResponsIbIlIty
Report from The President
Director (1.1), (1.2)
“We will continue to support global
eforts to control climate change,
which is the most signiicant
environmental issue in the context
of sustainability.”
24
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
enHancIng
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ResouRces
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about telkom
Report from the President Director
ImpRovIng tHe
economy
arief Yahya
President Director
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
25
HIgHlIgHt
REPORT fROM THE
PRESIDENT DIRECTOR
about tHIs RepoRt
Report from the President Director
Dear Stakeholders,
The world we live in is facing an increasingly signiicant
environmental crisis. Although a range of global
initiatives to contain this crisis have been implemented,
carbon dioxide emissions have yet to be reduced
to levels considered by scientists to be safe. As a
result, extreme climatic conditions are an increasingly
frequent occurrence across the world, including in
Indonesia. To address this challenge, it is vital that all
parties, including all elements of the community, the
government, and private enterprise, work together.
Through such cooperative eforts, we will ensure the
ongoing sustainability of the planet and its inhabitants,
thereby ensuring that future generations will be able to
live in a healthier world.
As a business operation, Telkom is strongly committed
to playing a role in overcoming this environmental crisis
through the implementation of strategic measures to
control the level of carbon dioxide emissions resulting
from its corporate activities. As an accountable
company, we are committed to utilizingour resources to
ensure that we conduct our corporate activities in an
environmentally friendly manner.
Environmentally friendly Operations
Up to 2,876 Base Transceiver Stations (“BTS”) located
outdoors and operated by Telkom utilize solar cell and
micro-hydro energy, resulting in reductions in carbon
emissions of 961.39 tons per year. In addition, we are
encouraging the thorough implementation of the
paperless oice concept throughout businesses within
Indonesia through the provision of business applications
to facilitate this practice. For the installation of new
air conditioning units, we only utilize equipment with
environmentally friendly coolants that meet international
standards.
To the fullest extent possible, we are committed
to conserving natural resources through the
implementation of the principles of “3R” (Recycle,
Reuse, Reduce). These principles form an important
basis for a number of pro-environment policies. Other
manifestations of our commitment to the principles of
3R include our installation of wastewater management
units at our head oices in Jakarta and Bandung, with
wastewater being used to wash operational vehicles
and to maintain gardens.
We also manifest our commitment to preserving the
environment through cooperative endeavors with
communities to implement reforestation programs.
26
sHaRIng wItH tHe
communIty
envIRonmental
ResponsIbIlIty
So far, the programs have involved the planting of more
than 16,000 trees throughout Indonesia, the planting of
more than 50,000 mangrove seedlings in the Panaikang
Maros beach area in South Sulawesi, and the provision
of more than 1,000 Dutch teak and super mango
seedlings to Tasikmalaya’s city reforestation program.
In addition, we have facilitated the establishment of
a number of garden parks, equipped with cuttingedge communications facilities, in a number of regions
throughout Indonesia.
Support for Economic Development
The Company strives to ensure the achievement
of economic sustainability through the creation of
economic value for the beneit of all stakeholders. In 2012,
the economic value created by Telkom amounted to a
total value of Rp77.88 trillion, representing an increase
of 7.31% over the igure of Rp71.9 trillion achieved in 2011.
The total economic value distributed to stakeholders
increased dramatically in 2012, by 21% compared to the
previous year.
The dramatic increase in the distributed economic
value demonstrates that Telkom’s business activities
have a signiicant impact in terms of improving the
economic conditions of all stakeholders, including
suppliers, employees, central and regional governments,
and members of the community. The total value of the
Company’s contributions to state revenues in the form
of dividends, dues, and taxes amounted to Rp15.88
trillion, representing an increase of 7% over the igure of
Rp14.78 trillion recorded in the previous year.
Telkom also plays a signiicant role in improving regional
economic conditions through the payment of regional
taxes, the provision of employment opportunities, the
provision of guidance to small to medium enterprises
and cooperatives, the provision of TIMES facilities and
by creating economic opportunities for members of
the community through their involvement in businesses
activities that supportTelkom’s operations. All of these
beneits have a multiplier efect in terms of promoting
regional economic growth.
The Social Dimensions of Sustainability
As a company whose growth has been driven by its
harmonious relationships with all stakeholders, including
employees and members of communities surrounding
its operations, we strive to increase our achievements
in terms of social sustainability, in areas such as labor
management, human rights, product accountability, and
community development.
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
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Human
ResouRces
Development
As a manifestation of our commitment to human rights,
we refrain from all forms of discrimination related to
ethnicity, religion, group ailiation or gender in the
management of our human resources. We actively
support diversity and provide equal opportunities for
all employees to advance their careers. Throughout
2012, 21,013 employees were provided with training, at
an average cost of Rp8 million per employee. We also
established the Telkom Corporate University to develop
high quality leadership skills. In the area of occupational
safety and health, we successfully retained our zero
accident record. In order to facilitate the growth of the
Company, we continue to develop and improve the
quality of the services that we provide our customers, as
demonstrated by increasingly high customer satisfaction
indicators over the years.
As a company that operates throughout Indonesia,
including its most remote regions, Telkom also plays a
signiicant role in supporting the government’s eforts
to improve the conditions and quality of life of marginal
members of the community, to reduce poverty, to
improve standards of health, and to provide public
infrastructure and facilities of an adequate standard.
In all of these areas, Telkom plays a signiicant role
in the achievement of the government’s Millennium
Development Goals (“MDGs”) 2015, through its
participation in Community Development and
Environmental Management Programs (“PKBL”). In
2012,we provided assistance in the areas of education
and training to a total value of Rp19.96 billion; for the
development of infrastructure and facilities, including
religious worship facilities, to a total value of Rp13.40
billion; for the development of health facilities, to a total
value of Rp7.80 billion; and, through our participation
in the State Owned Enterprises Care (“BUMN Peduli”)
program, for community development and disaster
relief, to a total value of Rp50.03 billion.
Moving Towards the future
We will continue to support the global community’s
endeavors to control climate change, endeavors which
are of primary importance in the context of achieving
sustainability. Global warming, climate change,
and extreme weather have the potential to impact
Telkom’s business through their potential to damage
telecommunications networks and infrastructure,
which in turn has the potential to negatively impact the
economic value that the Company generates.
sustaInabIlIty
goveRnance
about telkom
Thus, we will continue to intensify the measures we have
implemented to reduce carbon dioxide emissions and
to conserve natural resources. In the short term, we will
continue to reine systems and procedures related to
the management of Telkom’s environmental footprint
as a basis for the further implementation of policies
that integrate environmental management into the
Company’s core strategies.
Conclusion
We would like to express our gratitude to our
shareholders, particularly the Ministry for State-Owned
Enterprises, who continue to provide direction and
guidance to improve Telkom’s sustainability performance.
We would also like to express our appreciation for the
advice and guidance provided by Telkom’s Board of
Commissioners, which enabled the Company to improve
its sustainability performance in 2012.
Finally, the Board of Directors would like to express its
gratitude and appreciation to all employees for their
hard work and eforts towards achieving a higher level
of sustainability performance this year.
Moving into 2013, let us all work even harder to
improve the economic conditions of all stakeholders by
conducting our business operations in an environmentally
friendly manner and by intensifying our commitment
to improving the socio-economic conditions of both
employees and all members of the community.
Jayalah Indonesia!
Jayalah Telkom Indonesia!
arief Yahya
President Director/CEO
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
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Report from the President Director
ImpRovIng tHe
economy
HIgHlIgHt
RepoRt fRom tHe
pResIDent DIRectoR
ABOuT THIS REPORT
sHaRIng wItH tHe
communIty
envIRonmental
ResponsIbIlIty
About This Report
PT Telekomunikasi Indonesia’s (“Telkom” or
“we”) 2012 Sustainability Report (“the Report”)
is the seventh such report, following the
publication of the irst report in 2006. Amongst
other purposes, this report is presented in
compliance with Article 66, Paragraph 2C of Law
Number 40, 2007, concerning Limited Liability
Companies. This act mandates the publication
of an annual report covering all activities related
to a company’s fulillment of its Environmental
and Social Responsibility (“ESR”).
According to Article 1 of this Law, ESR is deined as
“a company’s commitment to participation in sustainable
economic development to improve the quality of life
and the environmental conditions of the company
itself, the communities amongst which it operates, and
the broader public”.
through this report, we are taking the opportunity
to inform all stakeholders of telkom’s performance in
terms of achieving economic, environmental, and social
sustainability throughout 2012. portions of the material
presented in this report were included in telkom’s 2012
annual Report.
In the preparation of this report, we have endeavored
to adhere to the reporting guidelines established by the
global Reporting Initiative (“gRI”). these guidelines are
broadly acknowledged and have achieved widespread
acceptance by the international business community.
Speciically, these reporting guidelines are known as
the gRI guidelines for the preparation of sustainability
Reports version 3.1 (“gRI g3.1”).
28
Reporting Period (3.1, 3.2, 3.3)
this Report covers the period from 1 January 2012
to 31 December 2012. the preceding report, the 2011
sustainability Report, was published in June 2012.
telkom publishes its sustainability Report each
year to provide a solid basis for the evaluation of
management’s economic, environmental and social
performance, in addition to information related to its
inancial performance, which is presented in the Annual
financial statement.
Deining Report Content (3.5)
In the selection of the topics addressed in the report,
we primarily adhere to the principle of materiality. In
this context, materiality is taken to refer to issues of
relevance to the conduct of telkom’s business and to
issues that have a signiicant impact on and relevance
to stakeholders.
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
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In determining the contents of this report, we involve stakeholders through their participation in discussion forums,
which are attended by representatives of a full range of stakeholder groups. the outputs from these forums can be
seen from the 2012 materiality map, which is presented below.
High
community economic
empowerment
service Quality
Energy Eiciency
education
and training
community
Development
employee
Beneits
sustainable
supply chain
competitiveness
occupational
Health and safety
state budget
Low
Signiicant importane
to Stakeholders
Medium
Human
Rights
carbon emission
mitigation
Low
Medium
High
Signiicant importance to Telkom
Report Boundary and Data Measurement Techniques
(3.6 - 3.9)
Data related to telkom’s sustainability performance and
presented in this report relate to telkom as a holding
company. the report does not include data related
to the sustainability performance of the company’s
subsidiary entities. financial data, including data related
to economic value received and distributed (ec1), is
presented in the form of consolidated data covering
the company’s subsidiaries, as is standard practice
according to established inancial reporting guidelines
prevailing in Indonesia.
We use the techniques for the measurement of inancial
data established by the Indonesian financial accounting
standards (pernyataan standar akuntansi keuangan,
psak). for the measurement of sustainability data,
we use internationally accepted data measurement
techniques and units, such as gigajoules to measure units
of energy and so on. the quantitative data presented
in this report utilizes the principle of comparability,
covering a period of at least two consecutive years,
thereby enabling readers of the report to conduct a
meaningful analysis of trends.
Changes from Previous years’ Reports (3.10, 3.11)
During the period covered by this report, there have
been no fundamental changes to telkom’s business
structure. In this context, ‘fundamental change’ refers
to company actions such as acquisitions, mergers,
corporate restructuring, and downsizing. similarly,
there have been no signiicant changes to the report
limits, scope or measurement techniques since the
publication of the previous year’s report.
gRI Content Index and Assurance (3.12, 3.13)
we have included references to the relevant gRI index
in red brackets at each relevant page to enable readers
of the report to determine the speciic GRI indicators
applied throughout this report. a complete list of these
gRI indicators can be seen on page 111-113.
gRI g3.1 indicators addressed in this report refer to
issues relevant to the conduct and implementation
of telkom’s business. a number of gRI g3.1 indicators
are not addressed in this report because they are
considered not to be of material signiicance or relevant
to telkom’s business. In addition, a number of gRI g3.1
indicators are not addressed because the required data
compilation system has not yet been fully implemented.
telkom’s management is endeavoring to ensure that
such data is available for future reports, as part of our
ongoing eforts to improve and reine our sustainability
accounting systems and procedures.
this Report was externally assured by mazars in the
form of limited assurance, whose assurance statement is
presented on page 108-109. following a gRI application
level checked by the national center for sustainability
Reporting (“ncsR”), this report has been declared to
meet the criteria for a gRI application level of a+; see
page 110.
Sustainability Report 2012 • PT Telekomunikasi Indonesia, Tbk
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RepoRt fRom tHe
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about tHIs RepoRt
SHARINg wITH THE
COMMuNITy
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32
38
Educational and Training
Assistance
Assistance for Health
facilities and Infrastructure
36
38
Religious worship Assistance
Disaster Relief
36
Assistance for the
Development of
Infrastructure and general
facilities
Sharing
with the
Community
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HIgHlIgHt
RepoRt fRom tHe
pResIDent DIRectoR
“telkom shares through a
number of programs intended
to improve the quality of life
of members of the community.
telkom continues to develop its
social responsibility program to
foster the abilities and creativity
of the community and to
support eforts to preserve the
environment in cooperation with
the community.”
Telkom has intensiied its commitment to the community
through its Community Development Programs.
These programs are implemented in accordance
with government policies and initiatives to alleviate
poverty, to foster community independence, to improve
community capacities and to increase the level of
corporate participation in the achievement of the MDG’s
2015.
All of the Company’s community development projects
are intended to meet the needs of the community
following asse