CORPORATE SOCIAL RESPONSIBILITY

We realize that developing the company’s business is not enough. The implementation of social responsibility is important to us for the sustainability of the company’s business. We believe that the success of the company cannot be separated from the support of stakeholders and most of the raw materials for our products come from nature, so it is our responsibility to return the goodness we have received to stakeholders and the environment, in the form of empowering human resources and natural resources, as well as being a helping hand for social and community activities.

We always provide training activities to increase employee competence and improve employee welfare. We also preserve the environment by paying attention to activities that can have a negative impact on the environment and we continue to strive to minimize these impacts. Our product responsibility is carried out in the form of strict supervision in the production process and monitoring of consumer complaints to increase and maintain consumer confidence in the company’s products.

Sustainability Strategy

For PT Sekar Laut Tbk, sustainability means balancing business growth at the level expected by the company while considering economic, environmental, and social interests. This commitment is clearly reflected in our vision, where every step we take aims to create long-term value for both the company and all stakeholders.

Our business practices integrate economic, environmental, and social aspects of sustainability. As a manufacturing company in the food and beverage industry, we recognize that our activities, products, and supply chain may have environmental and social impacts.

Leveraging our scale and influence, we are committed to mitigating negative impacts while enhancing positive contributions to society and the environment. We also strive to implement initiatives aligned with the 2030 Agenda and the Sustainable Development Goals (SDGs).

As a food company with shrimp as our primary raw material, we understand the importance of responsible sourcing. By adopting the Marine Stewardship Council (MSC) standard, we support sustainable shrimp fishing practices in Indonesia. This approach not only addresses environmental concerns in Indonesian waters but also promotes the welfare of small-scale fishers.

Sustainable raw material sourcing also extends to tapioca flour, a key ingredient in our cracker products. Through Fairtrade certification, we support farmers’ welfare by ensuring fair payment systems, decent workplace conditions, technical assistance (such as bookkeeping), social programs, equality, transparency, mutual trust, and environmental preservation.

Implementation of Sustainable Fisheries Practices in Supply Chains and Small-scale Fishers

Economy:

Ensure shrimp stocks availability.
Increase fishers’ income due to better quality harvest.

Environmental:

Protecting marine biodiversity.

Social:

Protecting the livelihoods of fishers and communities who are dependent on fishing and seafood.

Implementation of Fairtrade Certification

Economy:

Increase product selling value.
Increase farmers’ income.

Social:

Protecting farmers’ rights with fair and transparent trade.

Sustainability Culture

PT Sekar Laut Tbk.’s Sustainability Culture is built on the Company’s vision, where sustainability aspects are explicitly stated, by becoming a leading and ever-growing world-class food company, while maintaining the balance of natural resources and the environment in a sustainable manner.

Four Values of Sustainability

In addition, we also have values that serve as the foundation in developing the Company’s culture. In accordance with the definition of sustainability, these values are:

Integrity.
Innovation.
Caring.
Synergy.

The Company introduces its vision and values to employees from the very beginning, when they join the Company, and then socializes them regularly.

Sustainability Governance

PT Sekar Laut Tbk does not yet have a special committee responsible for managing sustainability aspects. The management of economic, environmental, and social impacts is the responsibility of the managerial level in the relevant units. Meanwhile, the Board of Directors collectively reviews the performance of these sustainability aspects, including the determination of policies.

Competency Development Related to Sustainability Aspects

The Company facilitates education, training, and professional certification activities required for governance organs, as well as for all of our human resources, to develop competency and improve performance. Topics related to sustainability aspects are included in development programs.

During the reporting period, the Company’s governance organs, managerial officials, and employees actively participated in various workshops, training sessions, and discussion forums on sustainability themes. Detailed information on competency development activities can be found in the “Training and Competency Development of the Board of Directors and Board of Commissioners” subchapter and the “Training and Development of Employees” subchapter.

Sustainability Risk Management

As with business risk management, there is no difference in the approach taken by PT Sekar Laut Tbk to manage risks in the economic, environmental, and social aspects. A more comprehensive explanation of the identification, assessment, and control mechanisms, as well as the person in charge of risk management, can be found in the Risk Management chapter of this report.

In general, the Company manages economic, environmental, and social risks by applying the precautionary principle and ensuring compliance with applicable laws, regulations, and other requirements. The Company’s risks and mitigation actions related to sustainability aspects have also been reported in the Risk Management chapter.

Stakeholders Engagement

PT Sekar Laut Tbk has identified stakeholders that can be influenced by or can affect the Company’s performance in sustainability aspects. Through stakeholder engagement, the Company is able to formulate programs and establish policies to carry out its business activities and operations responsibly.

Stakeholders	Approach and Management Method
Stakeholders	Engagement Tool & Frequency	Significant Topics & Stakeholder Needs
Consumers	Customer Service via email (quality@sekarlaut.id), customer complaint service via telephone (+62 31 8921605); frequency every time.	Requests for product-related information; submission of feedback, complaints.
		Product development with new variations.
		Consumer protection regarding nutrition and product quality.
Investors & Stockholders	Annual General Meeting of Shareholders (AGMS), frequency once a year.	Financial Performance.
	Extraordinary General Meeting of Shareholders (EGMS), frequency if needed.	Dividend Distribution.
	Publish quarterly financial reports on the Sekar Laut website and IDX.net.	Fraud prevention.
	Annual Report, once a year. Sustainability Report, once a year.	Publication/information disclosure.
Employees	Mutual Employment Agreement.	Worker Welfare.
	Employee Training, as needed.	Career Development.
		Education and Training.
Regulator	Enforcement of regulations, ad hoc.	Regulatory Compliance.
		Corporate Performance and Sustainability Reporting.
Mass Media	Submission of Financial Reports in print media, once a year.	Submission of Company-related Information.
Community	CSR program, the frequency is uncertain.	Benefits to Communities.

Challenges in Implementing Sustainability Aspects

The implementation of our sustainability strategy comes with various challenges, both internal and external. Externally, the significant increase in raw material prices has impacted the Company’s economic performance. Rising costs cannot always be offset by increasing product prices, as doing so may lead to a loss of market share, especially in an increasingly competitive market.

The high expenditure on raw materials has also caused delays in the implementation of some previously planned sustainability initiatives. However, the ongoing Kotabaru project remains on track and continues as planned.

Internally, the Company did not encounter any significant challenges during the reporting period.*