Environmental and Social Responsibility
Reduce – Reuse - Recycle
The Company is commited to minimize its negative impact on the environment by implementing 3R policy: Reduce, Reuse, Recycle at head office and all stores.
Reduce The Use Of Plastic Shopping Bags
The Company no longer offers free plastic shopping bags in the regions that is prohibited by the regional government and offers Non-Free Plastic Bags (KPTG) to customers in the regions still allowing paid plastic shopping bags. The Company also provides reusable empty cardboard box as an alternatives method of packaging for customer’s purchased items.
As an additional effort to encourage customers to use less plastic bags, the Company offers reusable shopping bags with attractive design which have been clearly appreciated by the customers.
|Total Reusable Shopping Bag Purchased by the Customer||1,772,845||1,123,534||1,480,964||Pieces|
Reduce The Use Of Office Paper
To reduce paper waste, every employee is encouraged to use email or other digital platforms to exchange data, thereby reducing the amount of paper that has to be printed. The Company also encourages all employees to reuse the blank, unused side of the paper. The Company continues to innovate to develop technology so that later every operational activity will no longer need to use paper and move to digital platform.
The Company continues its efforts for waste management and disposal through coordination with third-party waste disposal agencies on regular and consistent basis at most stores to properly dispose all organic and non-organic wastes to the Landfill Site.
|Stores with Sewage Treatment Plan||Hypermart Loktabat Banjarbaru
|Hypermart Melati Mas
Hypermart Citra Raya
Hypermart Tole Iskandar
Hypermart Taman Yasmin
Hyfresh Cikarang Festival
|Hyfresh Duta Garden
Hypermart Puri Indah
Hypermart Gading Serpong
Several stores had Sewage Treatment Plan (STP) to manage primary waste from meat, bakery and RTE process. During this reporting year, there was no spillage or waste leakage experienced by MPPA.
Energy Consumption And Intensity
The Company’s main energy consumption consist of electricity usage from the State Electricity Company (PLN) and fuel for the operational vehicles. The total energy consumption are calculated from total PLN electricity usage converted to Gigajoule (Gj) unit.
|Total Energy Consumption||477,491||446,574||451,479||Gj|
|Total Stores Area||567,882||582,134||611,490||m²|
Being one of the important component of the Company’s environment sustainability, the electricity energy efficiency becomes the Company’s primary focus and commitment to further conserve the electricity usages through several controllable actions:
- Replacing fluorescent lamps with energy saving LED lamps in head office, new stores, and as well as renovated stores;
- The DC warehouse uses “sky light” during the day, so there is no need to use lights;
- Air conditioning (AC) at our head office will be turned off at 18:00 pm;
- Daily regular announcement to raise awareness of employees turning off lights and electronic equipment when not in use.
The use of water in the Company’s operational activities is mainly for several main business functions including the use of water for store and head office supplied by building facilities providers or Municipal Waterworks. The Company continues to implement water consumption efficiency through several initiatives such as installing water saving warning signs, installation of water-saving sanitary equipment at toilets located at stores and office.
The emissions produced by the Company are indirect emissions (scope 2) from the use of electricity from PLN.
|Energy Source||2022||2021||2020||Emission Factor||Units|
|Scope 2 Emission||115,394||107,922||109,107||0.87||(tCO2e)|
The Company does not have a specific program oriented to biodiversity conservation since all stores and head office areas are not located in locations closed to conservation areas and do not contribute any impact toward the protected biodiversity.
During 2022, there were no sanctions for violations of laws and regulations on the environment. The Company also ensures that no material complaints related to the environment are received.
The Company has not allocated a budget for environmental management.
MPPA’s concern for the community is not only shown through meeting their daily needs, but also through social contributions for the community around the company and social responsibility to employees and customer.
Sustainable Human Capital Management
A Safe And Decent 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 facilities such as prayer rooms, lactation rooms, canteen, parking spaces, first aid kits, smoke detectors, fire extinguishers, and emergency exit as well as emergency staircases. All employees at stores, distribution centers and head office regularly participate the fire evacuation drills and receive briefings for safe evacuation.
In 2022, 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. Despite certain travel limitation are still in-effect, the Company has relaxed the business travel regulation and re-enacted back the Work From Office (WFO) at head quarter and distribution centers while still protecting its overall employees. In 2022, there was only 1 (one) work accidents within the Company.
Employee Recruitment And Turnover
Recruitment at MPPA is carried out openly, both offline - at all MPPA outlets throughout Indonesia to recruit local workers, via email recruitment@hypermart. co.id, and on various job search sites. Equal job opportunities are given to everyone regardless of their gender, ethnicity, race or religion. Talents who meet the requirements, with the best qualification standards, are those who have the greatest opportunity to enter and become MPPA employees.
In addition to external recruitment, MPPA also conducts internal recruitment, which is filling key positions through mutation and promotion procedures. The advantage of internal recruitment is faster adjustment to new responsibilities, because internal employees already understand the work culture and company values, while providing opportunities for outstanding employees to have a career and enrich their experience and competence. Thus, it is hoped that employee engagement with the Company can be built and maintained.
|Total New Employee||124||38||162|
|Total of Employees Leaving|
|End of contract||168||56||224|
|Average Employee Turnover Ratio||13.49%|
The Company has also a minimum age requirement to avoid underage workers. All employees are ensured to have a clear employment contract and there is no forced labor practices and employment of minors within the Company.
To reduce the level of employee turnover, the company always strives for a conducive and comfortable work environment, so that employees can work optimally and can improve employee performance. Employee turnover ratio in 2022 is in the range of 13.49%. The main reason employees leave the company is mostly because of their own desires (resigning).
Employee's Welfare And Remuneration
The Company believes that a rewarding compensation package can be a key factor in attracting and retaining credible and talented employees. The Company offers a competitive salary as well as a range of benefits and incentives, such as health benefits, life insurance and maternity benefits, as well as a vehicle ownership program for employees above certain grades. The Company does not differentiate the basic salary ratio for male and female employees.
Employee’s Benefits Based on Employment Status
|Benefit Types||Permanent Employees||Temporary Employees|
|Wages (Basic Salary, and Special Stores Allowance)|
In addition, bonuses and salary increments may be awarded for job performance and length of service. All employees receive the statutory benefits and employment conditions they are entitled to by law, including pension and health benefits through the national insurance scheme, BPJS. The Company also awards severance and service payments to employees when they reach the official retirement age of 55. The Company complies with the provisions of the Regional Minimum Wage (UMR) set by the Government. The basic salary provided by the Company to employees at the lowest level is the same or even higher than the applicable Regional Minimum Wage (UMR).
Diversity and Equal Opportunity
The Company provides equal opportunities to all employees starting from the recruitment process to promotion, and at the highest level in the organizational structure. The commitment to an equal and diverse workforce is reflected in its recruitment, training, career development and promotion practices, through which it ensures that all employees have equal access to opportunities regardless of their gender, age, racial/ ethnic background, religion or social status.
The Total Number Of Employees Based On Type Of Employment Contract (Permanent and Temporary) By Gender
Although until 2022, approximately 23.4% of the Company’s employees are female, the Company still upholds the principles of justice and equal opportunity for female employees. In several respects, the Company also increasingly involves female employees at higher and managerial career levels in the Company’s organizational structure and provides special rights such as special maternity and post-natal leave as well as several workshops to develop mothers who have professional career paths. During this reporting year, there were no incidents of discrimination within the Company.
Percentage Of Governance Board and Employees Per Category and Gender
*On December 19, 2022, Wirawan Winarto resigned from his position as Director of the Company.
The Company provides rights of maternity leave for 45 days prior and 45 days after giving birth as well as rights of maternity leave for 2 days to husbands who will accompany the birth process. The Company also provides 45 days of miscarriage leave for female employees who have a miscarriage according to a recommendation letter from a doctor, while male employees are given the right to leave for 2 days to accompany spouses who suffered a miscarriage. The maternity and miscarriage leave will not deduct the employee’s rights of annual leave.
Employee Potential Development
MPPA realizes that a company’s success is highly dependent on its employees’ performance. Therefore, trainings continue to be held so that our employees’ potential can grow optimally.
Average Hours Of Training By Employee Category (Hours/Year)
Various trainings are held through both synchronous and asynchronous learnings, to develop employees’ competencies, both in general and specific skills, as well as in terms of work ethic.
- Synchronous Learning
Training is given face-to-face, both through offline and online. The types of trainings which are given with this method are as follows:
- Induction and Orientation: given to new employees and contains information regarding the company, knowledge on the company’s retail business, regulations and culture.
- General Competencies (Soft skill): training related to the 5 general competencies with the intent to shape employees with a professional work attitude
- Managerial Competencies: developing 3 managerial competencies (including leadership) from leaders, starting from manager to senior manager level
- Technical Competencies: training related to job technical abilities and skills.
- Career Development: training that prepares employees to carry greater responsibility than what they currently carry.
- Public Training: to involve employees in training by third party to increase general, managerial and/or technical competencies
- Asynchronous Learning
Training that is provided not simultaneously at the same time, in the form of e-learning. The type of training given using this method uses the same grouping as Synchronous Learning.
During 2022, the Company conducted an overall 82,283 hours of trainings for all employees at stores, distribution centers and headquarter.
The starting point for training and career development is the annual performance appraisal. With their line managers, employees assess their performance against a set of Key Performance Indicators (KPI) that include both quantitative measures, such as the achievement of targets and qualitative evaluations of certain competencies and qualities. These appraisals enable management to recognize and reward good performance, identify training and development needs, match employees to positions that make the best use of their skill sets, and identify potential future leaders.
Employees Assessed Per Category and Gender in 2022
|Category||Male (Person)||Female (Person)||Total|
The Company uses the performance Management System for several decisions regarding employees, i.e. performance evaluation and feedback, determination of compensation, career (promotion), individual competency development, and other decisions. There are 2 types of appraisals used, namely Competency, Discipline Assessment and KPI (Key Performance Indicator), especially for managerial level.
The Company maintains harmonious working relationship and environments for its employees through listening and responding to feedback from Ikatan Karyawan Matahari (IKM) and Lembaga Kerjasama Bipartit (LKS Bipartit) forums, which are communication forums between employees and management.
In this reporting year, IKM conducted various employee events ranging from sports and recreations, religious activities, social activities including special prices of primary grocery products for employees, visits to employees in-need, donation of books and school gears to employees’ children and others. All activities were in-compliance with health protocol. The Company also cooperated with Employees Cooperative with the main purpose to increase its employees’ welfares.
Employment-related grievances can be raised and arbitrated through the LKS. Suspected cases of misconduct can also be reported through the Company’s whistleblowing mechanism.
Collective Bargaining Agreement
The Company Regulation (PP) is developed by the Company by taking into account any suggestion and consideration from employees and is legalized by the Ministry of Labor to ensure that the Company Regulation is in accordance with the applicable laws and regulations to create a good and harmonious working relationship. The Company Regulation manages employee’s rights and obligations to the Company and vice versa. The Company Regulation is expected to support a conducive and productive work atmosphere for employees and the Company. The Company Regulation applies to all employees both in Head Office and stores throughout Indonesia. Within the Company Regulation, certain matters are regulated such as: work relation, employee recruitment and performance, remuneration, working time, overtime work, weekly rest, official leave and holidays, permission to leave work, work protection and facilities, social security and employee welfare, official travel, discipline, employee development and official ties, obligations of employers, superiors and employees, violations and sanctions, termination of employment, company assistance, bipartite LKS, settlement of complaints and IKM.
Operation Impact On The Community
The society community is one part of the stakeholders who has an influence on the Company’s business continuity. The Company’s presence is strived to always have a positive impact on its surroundings economically, environmentally and socially. The Company is committed to be able to contribute to society and create positive reciprocal relationships.
The positive impacts on the economic aspect include job creation for the local community and the improvement of the SMEs economy, while the positive impacts on the social aspects include CSR programs, and other social activities. All of these are expected to contribute for the improvement of community living and welfare standards.
However, the Company also anticipates to manage the potential negative impact on environmental aspects through its environmental sustainability approach, such as reducing the plastic shopping bag usage, more environmental friendly material utilization as well as conservation of electricity and water consumption.
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
Not only contributing to local economic and social development by providing attractive employment opportunities, the Company opens opportunities for SMEs (Micro, Small and Medium Enterprises) to develop by selling local products at MPPA’s stores.
In-line with its sustainability focus on responsibility to the customer, the Company regularly approaches SMEs to give socialization and workshops about the importance of compliance to Halal & ISO requirements in order to improve the SMEs’ product quality and production standards. In this reporting year, MPPA has been giving socialization to 28 SMEs suppliers in about 9 cities throughout Indonesia.
The Company encourages local purchases and encourages the development of local MSME (Micro, Small and Medium Enterprises) suppliers to meet the Company's quality standards, in accordance with regulatory requirements provided by the Government, such as Household Industry Food Production license (PIRT) dan Halal compliance.
To select SMEs products that are suitable for sale at MPPA stores, there are several standards that SMEs actors must meet, such as:
- Products sold in stores must be labeled with SNI and certified halal;
- SME actors must met the Halal compliance criteria;
- SMEs managed to supply goods in continuous quantities;
- SMEs actors are original producers, not packers or collectors and must have a Home Industry Product Permit (PIRT);
- Product packaging is made of safe materials, not easily damaged and attractive;
- Include the production code, date of use, composition, and weight of the product as information to customers;
- The product must be unique compared to other products, such as having specifications in terms of taste, shape and packaging;
- The production site must be clean.
Corporate Social Responsibility
The Company sees Corporate Social Responsibility (CSR) 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.
Several programs that have been held by employees at MPPA stores include; donations to orphanage, social service, natural disaster relief, blood donation, distribution of qurbani, distribution of basic food, distribution of zakat/infaq, aid for the poor, disaster relief for employees, and basic educatio assistance for employees’ children. In this reporting year, the total cost incurred by the Company for these programs is Rp118.24 million.
Other Social Activities
The Company continued its CSR involvement in several social activities focusing on community development, and education support. Those activities were conducted through cooperative partnerships with several Indonesian NGOs to manage certain social programs, especially the donation program.
YPHP & MPPA
The Company continued its support to Yayasan Pendidikan Harapan Papua (YPHP), a non-profit organization in Indonesia, for the development of school infrastructure and children’s education in remote areas of Papua island. YPHP conducted a social program of collecting the customer donations, while the Company facilitated its support for the collection from cashiers in all stores. Separately, the Company also gave philanthropic financial donations to the organization. During 2022, YPHP successfully collected the customers donation from the Company’s stores amounted to Rp 202.9 million.
LAZISNU & MPPA
In 2022, the Company continues its cooperation with LAZISNU, which is part of the Nahdlatul Ulama (NU) organization to conduct the “Program Infak Via Kasir”. The program, owned and operated by LAZISNU, enables consumers and the public at large to provide donations for helping community development programs while shopping. Consumers can donate the shopping cash change, round-up cash change, or direct infaq donations through the cashiers of all Company’s stores. During 2022, total customer donation collected by LAZISNU from this program amounted to Rp 126.7 million within the period.
Product Responsibility and Customer Satisfaction
Ensuring the safety and quality of products offered to customers is the responsibility of the Company. For food products, we ensure that they comply with government regulations and meet health and safety requirements. The products we offer have been checked according to regulations such as PIRT/ BPOM, and are certified halal and others.
In 2022, the Company was proud to receive the Halal Certificate from Halal Product Assurance Agency (“BPJPH”).
This achievement makes MPPA being the first modern retailer in Indonesia to receive Halal Certificate for its 139 locations of multiformat stores, distribution centers and head office nationwide. This Halal Certificate by BPJPH is the continuation of the Halal Decree issued by The Indonesian Council of Ulama (“MUI”) to the Company. Meeting these requirements reflects MPPA's strong commitment to implementing the Halal Assurance System ("HAS") in all business line operations and supporting functions (Distribution Centers and Head Office) as well as to maintaining the halal integrity of products and retail services.
The Company have also completed integrating the ISO 22000:2018 - Food Safety Management System, ISO 9001:2015 - Quality Management System and HAS 23000 & SNI 9001:2015 - Halal Management System, which is known as IFSQHMS. IFSQHMS is a form of the Company’s commitment toward theLaw of The Republic Indonesia No. 18 of 2012 on Foodand Government Law no. 33/2014 concerning Halal Product Certification which took effect on October 17, 2019.
Each product has passed quality control inspection upon receiving at distribution centers until delivery to stores. First In First Out (FIFO) allocation system applies to minimize any potential product with questionable quality and expiration date. If there are items that are not suitable for sale, store personnel will pull and separate merchandise from the display area to be placed in the return area or destroys items that cannot be returned. The criteria for merchandise that is no longer fit for sale, such as expired, changed physically, as well as changing taste and odor.
Product Innovation And Development
In this reporting year, the Company is more committed to improving existing private label products by launching the Hypermart brand. Product categories were also expanded with the main objective of meeting customers' daily needs as well as offering a selection of high-quality products comparable to leading national brands but at more affordable prices.
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 that do not comply with the regulations mentioned above.
Product Safety Evaluation
The Company is the first FMCG retail company in Indonesia to receive a Certificate of Food Safety and Quality Guarantee System for Processed Food (SMKPO) from the Head of Indonesian Food and Drug Supervisory Agency (BPOM) for all of its store formats in Indonesia. This certification is dedicated to retailers or distributors who distribute food products that they are required to have and fulfilled the food safety standards in accordance to the Implementation of Good Processed Food Circulation (“CPerPOB”) with national standard or have ISO 22000 Food Safety Management System certification with international standard.
The Company ensures its commitment to deliver fresh, safe and quality products to meet customer needs. Through its store audit teams, the Company periodically and randomly conducts inspection checks to ensure the safety of food ingredients in both old and new products for customer safety. In certain occasion, the Company also welcomes and cooperates with BPOM to do the similar product inspection at stores. During this reporting year, there were no incidents of non-compliance related to significant health and safety impacts of products and services.
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. Certain refund policies have been put in place to ensure customers’ satisfaction with all of their purchases at our stores. During this reporting year, there were no incidents of non-compliance concerning product and service information, and labelling.
Number Of Products Withdrawal
During 2022 there were no products that were recalled due to product safety issues. The Company routinely ensures that the products are the best quality.
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.
Customer Satisfaction Survey
In 2022, no customer satisfaction survery was performed by the Company. However, the Company’s Customer Care Center has been playing a good role in receving and addressing customers’ inquiries and complaints for proper resolution.
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;
- Call center 1500 216
- Interactional services through several social media accounts owned by the Company such as Facebook, Twitter, Instragram and others.
- Email services to firstname.lastname@example.org.
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.