Despite the COVID-19, the Company continued to stay dedicated in fulfilling its corporate social responsibility to all its stakeholders. Innovation, which the Company believes as its DNA, has driven AirAsia Indonesia to remain as a flagship airline in its class.

The Company recognizes its role as a leading airline that may cause social and environmental impacts because of its operations, but at the same time may also contribute positively in these areas. Therefore, the Company is fully committed to fulfilling its corporate social responsibility and fostering good relations with all internal and external stakeholders.

In addition, the implementation of corporate social responsibility (CSR) also demonstrates the Company’s compliance to the prevailing legal framework, such as Law No. 40 of 2007 on Limited Liability Companies (LLC Law). To show its accountability commitment, the Company regularly reports its CSR performance through annual reports and a dedicated sustainable report, compiled based on the Global Reporting Initiative (GRI) framework.

Since the adoption of the Sustainable Development Goals (SDGs) in 2015, the Company together with AirAsia Group have been working to align its CSR targets with the seventeen SDGs. This is outlined in AirAsia’s Sustainability Manifesto, which includes eight key initiatives in the areas of Carbon, Energy Consumption, Waste, Water Consumption, Sustainable Tourism, Goods & Services, Governance and Culture, with the following targets:

1. Carbon
   
   • Short-term target: Zero carbon emission growth from international flights as per 2021.
   • Long-term target: reduces carbon emission by 50% by 2050 compared to 2005 emission baseline.
2. Waste
   
   • Zero single-use plastic wastes in all offices (by end of 2020) and in flights (by end of 2025)
   • 20% reduction in inflight food waste by 2020
3. Energy Consumption
   
   • 10% reduction in power consumption per annum in all AirAsia offices.
4. Water Consumption
   
   • 10% reduction of water consumption in offices
5. Sustainable Tourism
   
   • Support and promote responsible and sustainably managed tourism.
6. Goods & Services
   
   • Ensures 100% sustainable and ethically sourced goods and services
7. Governance
   
   • Ensures diversity, inclusive workplace, and transparent business systems
8. Culture
   
   • Instill sustainability as part of the Allstars value

Corporate Social Responsibility related to Human Rights

Respect for human rights is a key principle within the SDGs and in the AirAsia’s Sustainable Manifesto. In the Company, this principle is applied through merit-based hiring and career development opportunities as well as in the management of human resources. This is reflected in the Company’s fair and open recruitment and career policy in order to realize diversity and inclusivity at work. Employees are selected based on their professional potential and performance, regardless of ethnic, ethnic, racial, religious, and gender differences.

Human rights principles are also consistently instilled in all employees, in line with Allstars’ cultural values. The Company believes that the success of creating a diverse and inclusive workplace, where human rights take precedence, is an important step to consistently increase work productivity, and thus support future business growth.

Corporate Social Responsibility related to Fair Operations

AirAsia Indonesia is committed to conducting fair and transparent business operations in line with GCG principles Therefore, the Company has established a Code of Conduct to guide all employees in interacting with fellow employees and external stakeholders as part of their daily duties and responsibilities.

The implementation of the code of conduct to realize fair business operations can be seen from the implementation of a good governance system that is accompanied by continuous improvement efforts. The Company also meets the principle of accountability by effectively and transparently communicating with the public and providing complete information. Public communications include access to whistleblowing system and public engagement in events such as Public Expose, Media Visit, and Employee Gathering. In addition, the Company has incorporated sustainable development goals into the decision-making process and is committed to empowering the community.

The above efforts support the Company’s vision and mission. Aware that fair operations is important, the Company ensures that ethical values are followed company-wide.

Corporate Social Responsibility related to the Environment

To minimize the negative impact of air transport, the Company has made a major commitment to environmental improvement as seen in the target areas of the AirAsia’s Sustainability Manifesto.

Human activities that ignore environmental sustainability, both in daily life and in business, are now known to contribute to various natural disasters. The global society has greatly benefited from the modern era, characterized by the rapid development of industrialization and technology, but this needs to be balanced with our efforts to ensure to the survival of the planet.

As an aviation company, the Company realizes its role in enabling world connectivity, as well as the side effects of its activities on the environment, such as high carbon footprint and greenhouse gases (GHG). To minimize the negative impact of air transport, the Company has made a major commitment to environmental improvement as seen in the target areas of the AirAsia’s Sustainability Manifesto.

Energy Management

In terms of energy management, the Company has conducted an energy audit to identify consumption leakage and then mitigation measures that can be taken. As a result of this process, the Company applies strict electricity usage regulations in workspaces, such as lighting operation between 7 a.m. and 5 p.m. and air conditioning that operates from 8 a.m. to 6 p.m.

In 2020, the Company posted carbon emission of 232,549.59 tons, a 69.8% decrease compared to emission level in 2019. The Company’s performance above brings AirAsia Group one step closer to its target of achieving zero GHG emission growth by 2021.

The above initiative is part of Perseroan to contribute to AirAsia Group’s target to reduce electricity consumption per year in office environments. Following those activities, and the pandemic that has restricted much of people’s activities in public spaces throughout 2020, the Company recorded power consumption at 964 kWh.

GHG Emission Reduction

Every year, the Company measures carbon intensity ratio to learn of the emission level that its flights produce. In 2020, the Company posted carbon emission of 232,549.59 tons, a 69.8% decrease compared to emission level in 2019.

The Company’s performance above brings AirAsia Group one step closer to its target of achieving zero GHG emission growth by 2021. In addition, there are also various other initiatives such as responsible travel, an agreement with Airbus to explore the use of more sustainable fuel sources, the adoption of carbon dashboards, and other electricity and fuel consumption efficiency efforts.

Waste and paper consumption management

All human activities, whether in the workplace or at home, produce waste. Without proper waste management, waste can cause serious environmental problems, such as severe marine pollution due to plastic as has been widely reported around the world.

Realizing the above, the Company launched a campaign to stop single-use plastics. In the Company’s office environment, this is done by encouraging employees to bring their own food and beverage containers as well as cutlery, or the #BYOCCC campaign (Bring your own cup, container & cutlery). This campaign is promoted to all Allstars, partners, and customers, and applies to the Company’s flight operations. This is in line with AirAsia Group’s target to achieve zero single-use plastic waste at the office by the end of 2020, and on board by the end of 2025.

Not only plastic waste, the Company strives to overcome the potential of aviation consumption waste by making better logistics planning on each flight route. At group level, the intended target is to reduce waste consumption by 20% by 2020.

In terms of paper consumption, global demand for paper has contributed to global deforestation, including in Indonesia. To minimize paper consumption, the Company applies policies to optimize paper use and maximize its electronic infrastructure to support business processes. Currently, the Company recorded paper consumption at the volume of five sheet/person/day and have carried out environmental audit on paper use. Audit results show that as many as 178,270 print jobs used duplex printing mechanism, resulting in 786,980 sheets of paper saved (29.94%), or equivalent to a total of 94.96 saved trees per year.

Further, the Company also implements the 3Rs of reduce, reuse, and recycle encourage waste sorting by material.

Water management

As one of the most important sources of energy, water and water consumption needs to be properly managed. The Company has put in place various water saving initiatives, such as water efficiency campaign and built absorption wells. The Company also regularly measures its consumption volume per square meter per year. As the result, in 2020 the Company reported consumption of 0,301 m3/m2/year. In total, the Company consumed 2.897 m3, consisting of 2.618 m3 from the water company and 279 m3 from deep wells.

Corporate Social Responsibility Related Employment And Occupational Health And Safety (OHS)

The Company is strongly committed to fulfill its responsibilities to in the areas of employment and OHS. Therefore, the Company always strives to create a comfortable, safe, and conducive workplace to growth productivity of all employees.

In managing employee relationship, the Company also refers to the IAA Corporate Regulations for the period 2018-2020. This regulation specifies the rights and obligations of the Company and its employees and ensures a healthy industrial relationship.

In connection to fostering solid industrial relations, the Company takes deliberate efforts to meet its obligations. Aside from competitive remuneration, employees are also entitled to health and social security programs. For health, the Company has enrolled all employees to the government’s universal health protection program, BPJS Kesehatan, and on top of that complements BPJS’ protection with private insurance covering outpatient, inpatient, and dental treatments, as well as prescription glasses. For social security, all employees are enrolled to the government’s social security program BPJS Employment and are entitled to different benefits of Old Age Benefit, Work Accident Benefit, Death Benefit, and Retirement Benefit. Because of the Company’s close relationship with all employees, in 2020 the Company reported 5.24% of employee turnover compared to 9.52% in 2019.

The Company, as part of the AirAsia Group, received a seven-star rating for COVID-19 Health Ratings from aviation experts in the Airlineratings.com.

Furthermore, the Company is aware of the unique characteristics of OHS risks in aviation. Therefore, the Company always ensures that occupational health and safety is always upheld in every operation. To mitigate risks, the Company has implemented a variety of activities, such as making clear and stringent work procedures and routinely conducting various safety-related trainings for permanent employees and contractors. Among these routine trainings are fire simulation, emergency evacuation, and comprehensive training on OHS. Training participants are taught all aspects of OHS at both theoretical and practical levels, such as legal basis, risk assessment, personal protective equipment, tools, and signs of hazards. Not only that, the Company also strives to instill a risk awareness culture to all employees. The Company emphasizes that occupational Health and Safety is a shared responsibility, expecting that every employee will be able to take safety precautions to protect themselves and others. Overall, the Company has zero tolerance approach to OHS risks, and intends to achieve zero incidents annually.

Throughout the pandemic, the Company continues to strengthen its commitment to maintain employee Health and Safety by implementing strict health protocols, including to flight crew. Following a temporary suspension of flight services during the early period of COVID-19 transmission, the Company became one of the best airlines to implement COVID-19 prevention measures. This can be seen from the Company requiring its flight crew to use personal protective equipment, implementing regular disinfection of aircrafts, adjusting food services, providing sanitation facilities, and introducing social restrictions. As a result, the Company, as part of the AirAsia Group, received a seven-star rating for COVID-19 Health Ratings from aviation experts in the Airlineratings.com.

Corporate Social Responsibility related to Social and Community Empowerment

In AirAsia’s Sustainability Manifesto, the commitment to the community is reflected in the Company’s sustainable tourism initiatives. In Indonesia, this initiative takes place on the island of Lombok. There are various ongoing activities, including entrepreneurial training for local community, English language training, and tourism promotion. In addition, the Company also has disaster response initiatives, as it is aware of Indonesia’s vulnerability to disasters.

As stated in Article 1 Point 3 of the LLC Law, contributing to the community, namely by helping the community improve the standard of living and improve the quality of the surrounding environment is part of the Company’s social and environmental responsibility. Community development activities are also an important pillar of the SDGs.

In AirAsia’s Sustainability Manifesto, the commitment to the community is reflected in the Company’s sustainable tourism initiatives. In Indonesia, this initiative takes place on the island of Lombok. There are various ongoing activities, including entrepreneurial training for local community, English language training, and tourism promotion. In addition, the Company also has disaster response initiatives, as it is aware of Indonesia’s vulnerability to disasters.

Corporate Social Responsibility related to Consumers’ Rights

The Company continuously strives to provide the most efficient and easiest channels for the customers to access its services. The Company’s website is constantly improved to provide clear, complete, and transparent information.

The consumers are one of the most important stakeholder groups for the Company and this drives the Company’s determination to provide excellent services. Therefore, the Company continuously strives to provide the most efficient and easiest channels for the customers to access its services. The Company’s website is constantly improved to provide clear, complete, and transparent information, and the Company is committed to fulfilling its service promise to all consumers.

One of the Company’s new initiatives is the AVA chatbot that can serve 11 languages. AVA makes it easy for consumers to communicate complaints and inquiries, such as reservation information. AVA complements existing communication channels such as email and social media Twitter and Facebook. The Company also proactively provides information about services by phone, SMS, and email, as well as information about the Company’s performance through regular reports.

During the pandemic, the Company strives to fulfill consumer responsibilities by providing safe services in accordance with health protocols. To facilitate consumers to take health tests as a travel requirement, the Company opened COVID-19 test services in various locations.

The Group and Company’s new initiatives

• AVA chatbot that can serve 11 languages. AVA makes it easy for consumers to communicate complaints and inquiries, such as reservation information.
• To facilitate consumers to take health tests as a travel requirement, the Company opened COVID-19 test services in various locations.
• A partnership with digital transformation company GrayMatter unveiled the innovative Scan2Fly technology that allows consumers to scan and upload health certificates and check the validity period of their certificates.
• A partnership with digital transformation company GrayMatter unveiled the innovative Scan2Fly technology that allows consumers to scan and upload health certificates and check the validity period of their certificates.

After that, in November 2020, the Company, through a partnership with digital transformation company GrayMatter unveiled the innovative Scan2Fly technology that allows consumers to scan and upload health certificates and check the validity period of their certificates.

Other innovations include automated baggage check, temperature check facility using roving technology, and the F.A.C.E.S facial recognition technology that carries out passengers’ boarding process without requiring physical contact with ground officers.

For the initial stage, Scan2Fly has been installed at Juanda airport in Surabaya, and will soon be rolled out to SoekarnoHatta airport in Jakarta.

This technology innovation will be soon implemented in Indonesia, particularly at supporting airports, such as Soekarno Hatta International Airport, Jakarta and I Gusti Ngurah Rai International Airport, Bali. Furthermore, it will be expanded in stages to airports where the Company operates in Indonesia.