Corporate Social Responsibility
The Company implements Corporate Social Responsibility programs as the means of enhancing stakeholders engagement on the AirAsia branding presence, to ensure long term business scale growth, while achieving social prosperity and environmental conservation.
In maintaining close relations with all stakeholders, the Company fully committed to implement its Corporate Social Responsibility (CSR) programs, for the achivement of sustainable growth, while providing the best benefits for the communities welfare and active participation in environmental conservation. This commitment is introduced by AirAsia Group as stated in AirAsia Sustainability Manifesto, which covers the following 8 main initiatives.
* The Manifesto highlights key initiatives and is not an exhaustive list of all AirAsia’s sustainability efforts
The eight initiatives are part of the support in achieving 17 goals of the Sustainable Development Goals (SDGs).
Within this manifesto, the Company carries out CSR activities based on Laws No. 40 of 2007 clause 74, and refers to CSR activity principles in ISO26000. The Company also adopts the Global Reporting Initiatives (GRI) as guideline in developing the CSR and environment activities reporting of international standard. As such, the Company hereby submits its CSR programs summary as follows.
RESPONSIBILITY RELATED TO HUMAN RIGHTS
The Corporate Social Responsibility related to Human Rights is carried out by continually upholding human rights basic principles and respect toward local cultures, customs and values. The diversity of its HR is believed to be one of the Company’s foundation that is able to foster sustainable business scale growth. As such, to maintain the diversity and harmony, the Company consistently implements stringent HR management and highly upholds the Corporate Culture values as stated under 7 Allstars guidelines. The Company also upholds humanitarian principles and respect human rights in the management of its human resources.
As part of respect toward human rights, the Company carries out fair and transparent recruitment process for new employee, and in accordance with the needs and required qualifications, regardless of tribes, ethnic racials, religions, gender or physical conditions. The recruitment and performance assessment are fully carried out based on experiences, competencies, skills, as well as the employee’s achievements.
RESPONSIBILITY RELATED TO FAIR OPERATIONS
AirAsia Indonesia fully committed and has implemented GCG principles that serves as guidelines for all AirAsia personnel in carrying out operations activities, interacting with fellow colleagues, building relations with working partners and other external stakeholders. The Company also creates transparent business practices and avoid any form of fraud.
To foster transparent and dignified working relations, the Company has in place the Code of Conduct that function as ethics guidelines to establish, regulate, and control the behaviour appropriateness of the Company’s employees to be in line with the Corporate Culture hence achieving the Company’s vision and mission. The Code of Conduct stipulates the Company’s business ethics and all employees’ working ethics.
The Code of Conduct key points related to the Fair Operations are implemented through the following:
- Implementation and preservation of ethical business practices and promote the importance of good corporate governance;
- Integration of sustainable development goals into the Company’s decision making process;
- Contribution to social development and community economic empowerment to enhance public engagement toward the Company’s existence;
- Effective, transparent and communicative engagement processes toward Stakeholders through presentation of periodical CSR activities report that refers to international standard reporting;
- Whistleblowing system availability accessible to all Stakeholders;
- Availability of communication media with Stakeholders through the Company’s social media as well as relevant activities such as Public Expose, Media Visit, Employee Gathering, and so forth.
RESPONSIBILITY RELATED TO ENVIRONMENTAL CONSERVATION
AirAsia Indonesia realizes its aviation transportation business also impacted the global environmental quality conditions, particularly through the Green House Gas (GHG) emission resulted from its operations activities, in both onshore and offshore. As such, to mitigate the impact of its operations activities toward the environment, the Company strives to apply various operations innovations. As part of AirAsia’s Sustainability Manifesto initiatives, the Company mitigates the following:
The Company and AirAsia Group initiated the energy saving programs by targeting to reduce up to 5% consumption in the coming years. The Company conducted “Energy Audit” to ensure optimum use of energy including identifying the potential of “energy consumption leaking”, identifying and establishing required saving energy measures.
The Company currently implements a more strict use of electricity in the office areas: optimum lighting in working areas between 07.00 am to 05.00 pm, including break-time between 12.00 - 13.00 hour; air conditioning facility only from 08.00 - am 06.00 pm, and other initiatives. As the result, the Company’s office (RedHouse) electricity consumption was 1.293 MWH with ‘Building Energy Use Index’ of 136.
Carbon Intensity Ratio recorded by the Company in 2019 at 71.82 gCO2/RPK. This was an increase of 15.26% from emission ratio in previous year
The Company’s office (RedHouse) electricity consumption was 1.293 MWH with ‘Building Energy Use Index’ of 136.
Green House Gas (GHG) Emissions Reduction
Stipulated zero growth target of GHG emission or carbon dioxide emissions from 2021 and forward, the Company and AirAsia Group realized various key initiatives such as implementation of energy savings, in both electricity and fuels; established Carbon Dashboard; formulated emissions reduction strategy and use of alternative energy; applied “responsible travel” initiative, and signed the MOU with Airbus to explore the local development of sustainable aviation fuel to be utilized by the group.
These iniatives resulted in the Carbon Intensity Ratio recorded by the Company in 2019 at 71.82 gCO2/RPK (RPK: passenger per kilometer), which closing in to the industry average of 75.00 gCO2/RPK. This was a decrease of 15.26% from emission ratio in previous year, and improved from the benchmark reduction recommendation of 7%-8% as stipulated by IATA.
Waste Reduction and
Recycle Products Usage
The Company expands its recycle programs promotion to the employees, partners and customers. The target include a discontinuation of the usage of disposable plastic products starting 2021, and flight consumption waste reduction by 20%.
In addition to sociliasing the 3R concept of Reduce, Reuse, and Recyle, the Company provides recycle bins facility in working surrounding areas and its operations activities areas. The employees, partners and customers are expected to separate their recycle products based on its materials, such as plastic, aluminium and paper.
This policy resulted in paper consumption per person in the Company at 10.0 sheets/person/day
The Company currently applies the policy of prohibition in using disposable plastic products, which is #BYOCCC Policy (Bring your own cup, container & cultery). #BYOCCC is an education progam for all Allstars (AirAsia employees), its invites the Allstars to reduce the use of “disposal plastic” in daily activities.
On flight consumption waste reduction, the Company applies a stricter oversight toward total consumptions in the aircrafts, at every flight route, including to improve the management of flight consumption inventory.
While on paper consumption reduction, the Company applies paper usage optimization policy, apart from e-mailing system optimization. This policy resulted in paper consumption per person in the Company at 10.0 sheets/person/ day, far lower from the paper consumption standard target in the aviation business at 25 sheets/person/day.
The Company committed to implement water consumption management in RedHouse Building by introducing saving water initiatives. The result was measured by calculating consumption volume per meter square per year, to reach 0.48 m3/m2/year. While total consumption was 5,401 m3 with 4,894 m3 for water PAM and 507 m3 for deep well. The Company has in place the absorption wells in the Building areas, as rainwater absorption facility in the ground.
Hammock Amok Project
A collaboration between AirAsia Foundation and APE Malaysia that involved all AOCs in 2019. They created enrichment tools to produce used fire extinguisher hoses into 13 beds for the tiger, 21 wooden sacks, 24 mini block toys, and 22 honeycomb feeders for the animals in the wildlife reserve. 35 volunteers from Allstars in China, India, Phillipines, Indonesia, Malaysia and Thailand has completed the #AllstarsDoGood program held on 12-13 October 2019 at the wildlife rescue center in Hanoi, Vietnam.
The Company also realized sterilization program, initiated by Allstars animal lover community at the HUB Denpasar, namely Bali Pet Crusaders and Seva Bhuana Foundation.
In conjunction with the World Wildlife Day on 4 October 2019, the Company organized free sterilization program and free rabies vaccine event for local dogs and cats. This activity aimed at helping to control the population and to improve the pets quality of life. The activities cost was in part derived from donations of Allstars animal lover. For the first event on 12 April 2019, a total of 34 cats and dogs were sterilized and 40 animals were vaccinated.
On 4 October 2019 of the world Animal day, the second sterilization event was held on 11 October 2019 in Kedonganan Beach Bali, for 15 dogs and 10 cats.
International Beach Cleaning Day
In conjunction with the International Beach Cleaning Day, collaborating with the AWARE Project and Reef Check Malaysia, the Company conducted the cleaning of corals and beaches at the Tenggol Island, Dungun, Trengganu, Malaysia on 20-22 September 2019.
A group of 30 divers has been able to lift up a 40kg heavy ghost nets that left out by fishing boats at one of diving location. This helps ensures no marine animals will be trapped in the future.
A total of 151 kg wastes had also been collected from this activity from the Dungun beach which mostly (95%) were disposable plastics.
RESPONSIBILITY TOWARDS EMPLOYMENT, OCCUPATIONAL HEALTH & SAFETY
Considering that aviation transportation operations imposes on different risk characteristics from other businesses, AirAsia Indonesia fully committed to place the Occupational Health & Safety (OHS) as main priority in its operations activities. The Company sets a zero tolerance on every operational stage that has OHS risk potential.
To ensure the achievement of zero incident, the Company sets stringent working procedures, particularly in the flight operations. Every flight operations are strictly carried out and monitored.
Moreover, to mitigate the OHS incident, the Company regularly carries out fire fighter drill, emergency evacuation simulation by referring to evacuation operating standard procedures, and OHS training. Comprehensive OHS training includes the introduction on OHS symbols, legal basis, objectives, incident definition, hazards and risks, including risk assessment, danger symbols and signs, and personal protective equipment.
To ensure the achievement of zero incident, the Company sets stringent working procedures, particularly in the flight operations.
Through this training, the Company aims to increase and enhance the awareness of OHS risks, thereby all employees shall continually maintain personal safety, colleagues, and working environment wherever they are. All trainings and simulations are organized for the Company’s permanent employees as well as outsourcing staffs.
The Company also strives to meet employee’s needs according to available sources. Apart from providing benefits according to employee’s performance, the Company provides health and social insurance programs for its employees. This among others BPJS Employment that includes Retirement Insurance, Work Accident Insurance, Passed-Away Insurance, and Pension Insurance that are paid based on the prevailing employment laws. All employees are also registered with BPJS Health as class I group; and the Company cooperates with private insurance company providing outpatient, inpatient, dental care and glasses benefits.
AirAsia Indonesia also refers to the IAA Company Rules applicable for the period of 2018-2020. The comprehensive rules stipulated the Company and Employee rights and obligations as the Company’s guidance in managing sound, favorable and balance industrial relations.
This achievement is reflected from the Company’s turnover level that reached 9.52% as of 31 December 2019 (2018: 11%). In addition, the Company recorded nil working accident by the end of 2019.
RESPONSIBILITY RELATED TO SOCIAL & COMMUNITY DEVELOPMENT
Aligned with the intensification of sustainability issues, the Company committed and focused on implementing social responsibility activities in several areas such as community empowerment, learning and working opportunities as well as disaster responses.
As part of AirAsia Group Sustainability Manifesto, the community empowerment is carried out by pioneering sustainable tourism industry development, which is started by selecting Lombok Island tourism areas. The program aims to mentor local communities on tourism industry awareness, communication lesson in English, improvement of tourism facilities cooperating with local Municipality, and promoting the intended tourism areas.
The learning and working opportunities is provided by opening the apprentice program in AirAsia Indonesia for the Indonesian students to practice their studies at schools. The apprentice program has been implemented since 2018 and has taken 100 students. The majority of students were from aviation schools, tourism, and engineering. Moreover, the Company also organizes knowledge sharing by providing lectures on aviation and tourism industry at universities.
In 2019, the Company realized its disaster response through the following:
In showing its emphaty toward the victims of earthquake in Lombok Island, the Company granted donation collected from All HUBs including sevaral donors through People and Culture accounts. Collaborating with Arkom Indonesia Foundation, the Company participated in re-building houses that were impacted by the earthquake.
Assistance for Tsunami Banten Victims
Sahabat Allstars and the Company granted assistance for the tsunami victims in Banten. A total of 200 Goody Bags for 200 children were given consisting of school bags, books and stationeries, including lunch Boxes.
A long term sustainable empowerment project to pioneering community-based tourism activity for the development of sustainable and responsible tourism program. The JourneyD program or Journey for Development is officiated in Bonjeruk Village, Central Lombok and fully supported by West Nusa Tenggara Provincial Government.
This program is also a manifestation of corporate transformation strategy to be more than just an airline company, while at the same to repositioning the AirAsia Indonesia commitment to actively contribute in developing sustainable tourism and fostering the tourism-based economic development in various main tourism destinations in the region, including Indonesia.
The JourneyD was officially launched by Deputy Governor of West Nusa Tenggara, Hj. Sitti Rohmi Djalillah, Head of Tourism Office of West Nusa Tenggara, H. Lalu Mohamad Faozal, and President Director of AirAsia Indonesia, Veranita Yosephine Sinaga in Bonjeruk, Central Lombok.
Effective as of January 2020, the Allstars employees will collaborate with the experts to build local community capabilites at AirAsia destinations including Lombok, to develop tourism offers based on preservation of culture, heritage and environment. This includes local products development and marketing, communication skills and services improvements, as well as safety and hygiene standard improvements, and waste management, in order to meet international standards.
The JourneyD program was first initiated four years ago with four communities across Thailand. Resulted from its contribution to the achivement of 12 goals out of 17 SDGs goals, by among others eradicating poverty and hunger, to fostering industrial, innovation and infastructure goals, the JourneyD has been been supported by the United Nations Development Programme (UNDP). In 2019, in addition to program development in Lombok, the JourneyD has also initiated to Langkawi, Malyasia.
The Company also realized various other social contribution such as blood donors that organized as part of the Republic of Indonesia’s Anniversary, visits to the orphanages and Qur’ban Eid activity. The blood donor was carried out in Cengkareng in November 2019, with 108 registered participants and delivered 70 blood bags from 70 donors.
RESPONSIBILITY TOWARDS CONSUMERS
Providing the best quality flight services is not only a mandatory for the Company in compliance with the aviation transportation regulations, but also a manifestation of the Company’s awareness and vision to highly uphold the customer as main stakeholders, which hold strategic roles and vital for business sustainability.
To that end, in addition to comply with the Minister of Transportation Regulation No. 185 of 2015 on Economy Class Passengers Services Standard of Domestic Scheduled Commercial Flight, to ensure the fulfillment of responsibility to customer and the achievement of excellent customer experience, the Company also carried out the following:
- Develop handling mechanisms of customer feedback through email, Twiter and Facebook.
- Provide respond mechanisms for proposals, critics and recommendations of service improvements from the public through email or website, including for schedule changes and others. Through Customer Management, the Company aims to immediately settle every input, request, complaint or submit information related to the customer interests.
- One of the responds is the development of AVA, chatbot that can communicate in 11 languages, thereby may reduce the customer complaints and resolve through immediate respond. AVA can assist the customers in providing information on reservation in the available application.
- Proactive communication of the changes of flight schedules, if any, through outgoing calls, SMS and email to customer, in addition to provide AVA mechanism as stated above.
- Collaborate with relevant department to reduce customer complaints. The Company also widely provides the Customer Complaint mechanism, and fullby committed to settle all complaints presented by the customer.
To maintain customer satisfaction and as the feedback for service quality improvements, the Company conducts periodical survey.