Sustainability Development & Corporate Social Responsibility

“Sustainable Development (“SD”) and Corporate Social Responsibility (“CSR”) is an integral business philosophy of Samko Timber. The Group is committed to adopt an integrated approach in achieving business development, social progress and responsible environmental management”

Our commitment to SD and CSR is reflected in our Corporate Values and Code of Ethics. In the conduct of our business from processing raw materials into products for consumers, we adopt a fundamental principle: “Satisfying present needs without compromising the future”.

Our efforts in SD and CSR covers a pragmatic and comprehensive scope ranging from safety to workers’ and community, workers’ security and welfare, respect for the environment and fair business practices. We aim to reduce any impact to our environmental through strict corporate rules of conduct and governance. At the same time, we encourage the involvement and commitment of all our staff to support and promote SD and CSR.

In 2014, Sampoerna Kayoe was involved in the following activities:

• Contributing free seedlings to the local communities;
• Offering scholarships for the best performing students;
• Offering school fee support for low income families;
• Donating funds for the construction of public facilities, among others mosques and churches, health clinics, and roads, surrounding our    factories; and
• Donating funds or parcels (religious offering) for low income families in various religious festive (i.e. Ramadan or Hari Raya Idhul Fitri)

In the conduct of our operations, we are committed to ensure the sustainability of our raw material sources. We are aware of possible environmental impact due to logging and thus we source our raw material mainly from plantation logs or logs which have met the requisite standards adopted by governmental and non-governmental organisations.

In 2013, the Indonesia government has signed the voluntarily partnership agreements (“VPA”) on forest law enforcement, governance and trade (“FLEGT”) with the European Union (“EU”). VPA FLEGT is a legally binding trade agreement between the EU and a timber-producing country, such as Indonesia, outside the EU.

The purpose of a VPA is to ensure that timber and timber products exported to the EU come from legal sources. The agreements also help timber-exporting countries stop or reduce illegal logging by improving regulation and governance of the forest sector. Following this, the Indonesian forestry and other relevant ministries have imposed mandatory requirements on timber products producers and exporters to obtain the necessary certification of timber source.

Some of our processing plants have already obtained the International certification, which requires a stringent process of implementing a documentary tracking system to maintain records of suppliers, purchases, inputs, processing and outputs of chain-of-custody certified products. The International certification enables us to build a stronger brand identity and allows us to meet increasing demand for certified processed timber products. To maintain our consistently high standards, we regularly monitor and aim to achieve ongoing compliance requirements.