Corporate Social Responsibility


Corporate Social Responsibility

In 2021, the Company continued its Corporate Social Responsibility (CSR) involvement in several social activities focusing on community development, education support and environmental preservation. Those activities were conducted through cooperative partnerships with several Indonesian NGOs to manage certain social programs, especially the donation program.

The Company sees corporate social responsibility as a company- wide effort, and it encourages and supports the engagement of employees and customers in actions and initiatives that will ultimately contribute to a more equitable and sustainable society.

Social Responsibility for Environment

As the Company’s operation is solely focused on retail and distribution, and not manufacturing, the Company tries to minimize its impact on the environment through energy efficiency and waste management measures. The Company prioritizes various environment matters at all store levels. Certain measures are taken to create better environment at the stores’ surrounding.

Energy Consumption And Intensity

The Company’s main energy consumption consist of electricity usage and fuel for the operational vehicles. The total energy consumption are calculated from total fuel purchase and electricity bill converted to kWh unit.

Energy Consumption And Intensity

Energy Source 2021 2020 2019 Units
Fuel 633,158.21 588,854.05 626,223.36 liter
Electricity 140,157,818 149,354,883 176,395,099 kWh
Total Energy Consumption 140,157,818 149,354,883 176,395,099 kWh
Total Stores Area 582,134 611,490 631,246
Energy Intensity 240.76 244.25 279.44 kWh/m²

Use of Enviroment-Friendly Energy

By the end of 2021, nearly all of the Company’s stores have adopted the energy saving LED bulbs, which was initiated in 2014. This policy has successfully reduced the Company’s overall electricity usage. Going forward, the Company will continue to adopt the usage of LED bulbs for new stores as well as renovated stores. The Company has also utilized the environment-friendly refrigerant (freon) R404 since 2013. Until now, almost 70% of chillers at stores using this R404 refrigerant.

Waste Management

The Company continues its efforts for waste management and disposal through coordination with waste disposal agencies on regular and consistent basis at most stores. Several stores had Sewage Treatment Plan (STP) to manage primary waste from meat, bakery and RTE process.

Category 2021 2020 2019
Total STP 8 1 3
Stores with Sewage Treatment Plan Hypermart Melati Mas
Hypermart Citra Raya
Hypermart Tole Iskandar
Hypermart Taman Yasmin
Hypermart Ciledug
Hypermart Cimanggis
Hyfresh Cikarang Festival
Hyfresh Bojongsari
Hyfresh Duta Garden Hypermart Cyberpark
Hypermart Puri Indah
Hypermart Gading Serpong
Grand Total 12 4 3

Reducing Plastic Bag Usage

Started on August 1, 2019, the Company further enforced its efforts to reduce the usage of plastic shopping bags in order to comply with the regulation from the Ministry of Environment and Forestry Republic of Indonesia as well as regional governments. The Company no longer offers plastic shopping bags in the regions already prohibited by the regional government, while it charges Rp200 per bag to customers in the regions still allowing paid plastic shopping bags. The information was clearly communicated to customers with stores’ signages. The Company also offers alternatives method of packaging such as providing empty cartoon box as well as promoting attractive reusable shopping bags.

These reusable shopping bags continues to be offered to customers, not only as part of the Company’s on-going collaboration with Walt Disney Indonesia, but also as our effort to encourage customers to use less plastic bags. These reusable shopping bags have clearly become customers’ favorites to collect and sustainable eco-lifestyle.

Category 2021 2020 2019 Units
Total Reusable Shopping Bag Purchased by the Customer 1,123,534 1,480,964 1,364,330 Pieces
Grand Total 3,968,828
Social Responsibility for Social and Community Development

Use Of Local Workforce

The Company prioritises local hiring for employees in stores. Every Company’s store opening creates significant job opportunities which contributes to local economic growth.

Social And Community Development

The Company pays the highest attention to social development, especially on community development and education support. Not only contributing to local economic and social development by providing attractive employment opportunities, the Company also investing in empowering people and communities through various health, education and livelihood initiatives. Workshops for food handling, food safety, food quality and other issues for SME are regularly conducted tobenefit customers with better knowledge in higher food quality delivered to customers.

In 2021,the Company continued working with its parent shareholder group in mobilizing aid for victims of natural disasters as well as donating key food necessities to its surrounding amid Covid-19 situation.

Food and household necessities aid to Covid-19 infected Jakarta residents

Amid the Covid-19 pandemic condition, the Company working together with its parent shareholder group and PT Matahari Department Stores Tbk (“LPPF”) donated 7,500 packages containing foods, clothings, hygiene products and other daily household necessities to Jakarta residents who were conducting self-isolation at their homes as they were infected by the Covid-19 virus. The donation aid were handed over by the Company to Jakarta government, and were distributed to several isolation centers and civilian homes.

Aid for the victim of Mamuju earthquake

In Q1 2021, the Company also worked together with Yayasan Pendidikan Harapan Papua (“YPHP”) to collect the donation from customers and mobilized the aid consisting of food and daily necessities to the victims of Mamuju earthquake. The donation aid were handed over to the local government task forces and distributed to several evacuation centers.

In-Store Educational CSR Fieldtrip for Children Program

The In-Store Educational CSR Fieldtrip for Children Program remains as the Company’s CSR focus. This CSR program is intended to invite children from kindergarten and elementary schools to visit nearest Hypermart, Primo and Foodmart stores, where children are encouraged to interact in basic information of hygiene, food handling, fresh products for health as well as the role and function of modern retailing within the overall distribution chain. MPPA reinstated its “In-Store CSR Educational Fieldtrip for Children” in mid-Q4 2021 at Hypermart, Primo and Foodmart stores with health protocols as regulated by the government.

Community Engagement Activities by Employees

Through Ikatan Karyawan Matahari (IKM) and MPPA’s support, the employees voluntarily donate their time and skills to develop and implement various community engagement activities to address local issues and needs. These activities create added value for our communities, helping to earn the trust of the stakeholders to the Company.

Communication of Anti-Corruption Policy

The Company has a policy to prevent all corruption practices within all level of organization, where it is stated in the Code of Conduct Charter. The Charter is regularly disseminated to employees, management and suppliers through training and gatherings, and sets out the Company’s policies and procedures for addressing gratuities, bribery. Moreover, anti-fraud and anti-corruption policy are also communicated in these occasions.

Ensuring Supplier Responsibility

The cooperation between Company and suppliers has been conducted with applying high standard of business ethics and behavior. All suppliers and contractors are legal entities and as such are required by law to comply with minimum wage regulations and other provisions of the prevailing employment laws, environmental laws and regulations, and the laws governing business. This is stated in legally binding agreement and reviewed periodically.

The Company will act firmly with termination of cooperation toward suppliers not complying with the regulations mentioned above.

Social Responsibility for Employment, Occupational Health and Safety

The Company is responsible to employees by upholding all relevant employment-related laws and regulations at local and national level, and by providing an inclusive, fair and rewarding working environment. The Company is committed to provide safe, healthy and comfortable working environment to employees. All stores, distribution centers and headquarter office are equipped with work safety tools such as sprinkler system, fire alarms and fire estinguishers, and emergency exit as well as emergency staircases. All employees at stores, distribution centers and headoffice regularly participate the fire evacuation drills and receive briefings for safe evacuation.

Within the Covid-19 situation in 2021, the Company continued to emphasize the safety for its employees. Its Covid-19 Task Forces has been actively involved in monitoring the infected cases, vaccination progress as well as releasing several circulars to remind and reinforce the Covid protocols. The Company has also enacted the travel limitation regulation and the new practices of Work From Home (WFH) and Work From Office (WFO) at head quarter and distribution centers to correspond the ongoing status of Covid-19 while protecting its overall employees.

Social Responsibility to Customers

Customer Safety and Comfort

The Company always values customers’ safety and comfort as important priorities. Store layouts have safety standards with clear information of emergency exit and emergency staircases, fire alarms, sprinkler systems and fire estinguishers.

In the regard of customer comfort, the stores’ design and layouts has bright illumination, air conditioned, wide aisles for shopping trolleys and product shelvings that put focus toward customer safety.

During the challenging Covid-19 situation in 2021, the Company took further steps to ensure customers safety by enabling strict health protocols at all stores such as body temperature checks at entrance; frequent cleaning of cashier areas & shopping baskets, use of face shields, masks and hand gloves by store employees, in-store signages for physical distancing and others.

Product Labeling

The Company ensures that all products offered at all stores have passed certain quality standards in terms of information, ingredients, packaging and other elements. For compliance to stakeholders, the Company ensures that products being offered have certifications from the regulatory authority and include data about ingredients, expiration dates and other important information. This is a strong effort aimed at customer protection. Certain refund policies have been put in place to ensure customers’ satisfaction with all of their purchases at our stores.

Customer Complaint Mechanisms

In the event that the customers are not satisfied for their purchases, the Company welcomes feedback that will help to improve the service level in resolving complaints. The Company has an exchange policy that allows customers to exchange certain goods for similar products within certain period.

Customers can file complaints, give feedbacks or request information about products and services through the following channels:

  • In-store customer service desks in all stores during store opening hours;
  • Interactional services through several social media accounts owned by the Company such as Facebook, Twitter, Instragram and others.
  • Email services to cs.support@hypermart.co.id.

All customer feedback is logged and used as input for improvement. If a complaint or enquiry cannot be dealt directly, it will be forwarded to the relevant department to be followed up.