EN 
ID SUSTAINABILITY REPORT 2022-2023
PT SINARMAS HANA FINANCE
BUILDING A CULTURE OF SUSTAINABILITY
As stated in previous years, the initial implementation phase of sustainable finance according to the roadmap, in developing a culture of sustainability that began with introducing the basics of the sustainable finance concept as stated in POJK No.51/POJK.03/2017 regarding the Implementation of Sustainable Finance for Financial Services Institutions, Issuers, and Public Companies. The socialization has been carried out gradually both online and offline to employees and all stakeholders, both at headquarters and Branch Offices (KC), at every level of the organization from Directors to staff level, so that employees have the same understanding/vision to become the foundation in building a culture of sustainability in the Company.
The Company has and always strongly committed to supporting environmental sustainability efforts, particularly in daily life activities within the company environment and financing products. The movement to create a go-green culture in the Company environment has been implemented comprehensively in various forms of paper use efficiency, the use of tumblers (drinking containers) for each employee made from recycled materials, water conservation, electricity conservation (energy-saving lights, AC, etc.) and financing products.
Good habits that have become behaviors that impact the environment continue to be carried out with the active participation of employees in supporting environmentally friendly behaviors, such as urging the use of used paper to the maximum and the efficient use of AC in rooms (including replacing room cooling machines with new and environmentally friendly/energy-saving machines).
The activity of building a culture of sustainability is reflected in the Company's strategy in prioritizing the implementation of digitalization in business activities. Overall, the Company has continuously developed an integrated information technology system between business partners, consumers, headquarters, and Branch Offices (KC).
POSITIVE IMPACT OF SUSTAINABLE FINANCE IMPLEMENTATION FOR SOCIETY AND THE ENVIRONMENT
The quantitative impact of the implementation of sustainable finance for the society and the environment of PT SHF is not yet available, but the Company is very confident that the policies and strategies taken have made a positive contribution. One example of a positive impact is that with the reduction in paper usage along with the shifting of office activities online, which previously required paper, now does not require paper, resulting in a decrease in paper demand, reducing the number of trees that need to be cut down, electricity and/or coal for paper production will result in good air quality, and so on.
SUSTAINABILITY STRATEGY
The year 2023 is the 4th year of the implementation of Sustainable Finance based on Article 3 of OJK Regulation Number 51/POJK.03/2017 concerning the Implementation of Sustainable Finance for Financial Services Institutions, Issuers, and Public Companies. Therefore, the Company has implemented the 2023 Sustainable Finance Action Plan (RAKB) with the aim of becoming a trusted and superior Company in achieving sustainable development goals in Indonesia, which is carried out through the main strategy, namely: understanding and implementing the insights and knowledge of sustainable finance that have been understood and comprehended by each leader to all their respective staff through real activities.
In the fourth year of RAKB implementation, the Company's sustainability strategy has successfully carried out well-formulated activities, especially in the fields of paper savings, electricity savings, single-use bottle savings, and related matters, balanced with the Sustainable Finance development and training program to prepare human resources within the Company to implement Sustainable Finance.
Through good understanding and awareness, it will encourage the growth of concern for the implementation of Sustainable Finance in the Company's business environment, which is expected to create initiatives and innovations for Sustainable Finance products and services developed in accordance with the principles of Sustainable Finance, not just mere rhetoric.
The factors considered, both internal and external, include the Company's financial condition, technical capacity, organizational capacity, and human resources owned by the Company.
The Company has developed a Sustainability Strategy for a period of 5 (five) years, namely for the period from 2020 to 2024, divided into 3 (three) stages consisting of initial implementation (period 2020 – 2022), continued implementation (period 2022 – 2023), and full implementation (2024) which has been running well with some notes.
Guidelines for implementing Sustainable Finance by referring to POJK No.51/POJK.03/2017 have been prepared. The guidelines will always be reviewed in accordance with the conditions and developments of the Company's business activities, including the objectives of Sustainable Finance while still paying attention to applicable regulations and laws.
To achieve sustainable growth, the Company strives to build a strong foundation by improving the quality of human resources through training and awareness activities through social media and other media available in the company, which is expected to produce professional and highly integrated human resources and support the implementation of Sustainable Finance in the Company.
SUMMARY OF SUSTAINABILITY PERFORMANCE ASPECTS
| a. Economic Aspect (in rupiah) | Year 2023 | Year 2022 | Year 2021 |
|---|---|---|---|
| Multipurpose Financing | 437 Billion | 384 Billion | 412 Billion |
| Working Capital Financing | 658 Billion | 747 Billion | 553 Billion |
| Investment Financing | 296 Billion | 238 Billion | 180 Billion |
| Liabilities | 1.171 Billion | 1.057 Billion | 861 Billion |
| Profit Before Tax | 9 Billion | 30 Billion | 27 Billion |
| Revenue | 221 Billion | 200 Billion | 174 Billion |
| b. Environmental Aspect | Year 2023 | Year 2022 | Year 2021 |
|---|---|---|---|
| Electricity Usage | 1.5 Billion | 1.4 Billion | 1.2 Billion |
| Paper Usage | 206 Million | 262 Million | 27 Million |
* Note from the Environmental Aspect that there are two periods, namely during covid and after covid. It is clear in 2023, although there is an increase in electricity costs, it is still reasonable because the Company is already operating at 100% and the increase in electricity rates, but the increase is not extreme. Meanwhile, in terms of paper usage, it is clear that even in normal times in 2023, the company can significantly reduce paper costs by 56 million rupiah.
BRIEF PROFILE OF PT SINARMAS HANA FINANCE
Vision and Mission
Sustainability is part of PT Sinarmas Hana Finance's commitment to realizing the Company's vision of becoming the main financing company relied upon by the community, playing an important role as a pillar of Indonesia's economy in realizing that vision.
VISION
To become a leading financing company with world-class service. This vision illustrates that the Company will continue to expand its business to continue promoting the best service standards for customers.
MISSION
- As a financing company with an extensive integrated network throughout Indonesia;
- Appropriate Information Technology;
- Reliable human resource development;
- Managing the company with good corporate governance (transparency, accountability, responsibility, independence, and equality).
COMPANY CULTURE VALUES
COMPANY INFORMATION
| Company Name | Address | Phone Number | Website | |
|---|---|---|---|---|
| PT Sinarmas Hana Finance | Roxy Square Building 3rd Floor Block B 01 No. 2, West Jakarta | 021 5695 4670 | shf.co.id | customercare@shf.co.id |
BRANCH OFFICES
| Branch | Address |
|---|---|
| Roxy Branch | ROXY SQUARE, Roxy Square Building LG Floor B06 No. 30, West Jakarta 11440 |
| Depok Branch | Jl. Arif Rahman Hakim No.69, RT.3/RW.13, Beji, Depok City, West Java 16421 |
| Bekasi Branch | Ruko Mutiara Bekasi Center, Jl. Ahmad Yani No.10, Bekasi City 17141 |
| Tangerang Branch | Ruko Bolisena Block C No 28, Jl. Boulevard Raya Gading Serpong, Tangerang, Banten 15810 |
| Bogor Branch | Jl. Raya Pajajaran Komp. Ruko Bantarjati No.96 N, Bogor City, West Java 16153 |
| POS Karawang | Jl. Kertabumi No.10A, Karawang Regency, West Java |
| Solo Branch | Penumping, Laweyan District, Surakarta City, Central Java 57141 |
| Bandung Branch | Jl. Mekar Utama No.111P, Bandung City, West Java 40237 |
| Semarang Branch | Jl. Mayor Jend. D.I. Panjaitan No.90C, Semarang City, Central Java 50241 |
| Kediri Branch | Jl. Pemuda no 11C, Kediri City, East Java 64112 |
| Yogyakarta Branch | Ruko Casa Grande No 12, Sleman Regency, Yogyakarta 55282 |
| Malang Branch | Jl. A. YANI MALANG A-38, Malang City, East Java 65125 |
| Surabaya Branch | Jl. Raya Manyar No.36, Surabaya City, East Java 60284 |
NUMBER OF EMPLOYEES
| Position Type | Male | Female | Total |
|---|---|---|---|
| Director | 4 | 0 | 4 |
| Commissioner | 3 | 0 | 3 |
| Div. Head | 1 | 1 | 2 |
| General Manager | 1 | 0 | 1 |
| Manager | 12 | 0 | 12 |
| Supervisor | 24 | 3 | 27 |
| Staff | 215 | 66 | 281 |
| Age Type | Male | Female | Total |
|---|---|---|---|
| 21-25 | 16 | 10 | 26 |
| 26-30 | 34 | 28 | 62 |
| 31-35 | 66 | 18 | 84 |
| 36-40 | 84 | 10 | 94 |
| 41-45 | 45 | 3 | 48 |
| 46-50 | 15 | 1 | 16 |
| Education Type | Male | Female | Total |
|---|---|---|---|
| High School | 110 | 22 | 132 |
| Diploma | 53 | 23 | 76 |
| Bachelor | 80 | 31 | 111 |
| Postgraduate | 11 | 0 | 11 |
| Doctorate | 0 | 0 | 0 |
| Employment Status Type | Male | Female | Total |
|---|---|---|---|
| Permanent Employee | 56 | 18 | 74 |
| Contract Employee | 203 | 53 | 256 |
| Outsourced Employee | 33 | 0 | 33 |
SHAREHOLDER PRESENTATION
| No | Shareholder | Percentage |
|---|---|---|
| 1 | Hana Capital Co. Ltd | 55% |
| 2 | PT. Bank KEB Hana Indonesia | 30% |
| 3 | PT. Sinarmas Multiartha Tbk | 15% |
OPERATIONAL AREA
| DKI Jakarta | West Java | Central Java | East Java |
|---|---|---|---|
| West Jakarta | Tangerang | Yogyakarta | Surabaya |
| Bandung | Semarang | Malang | |
| Bogor | Solo | Kediri | |
| Depok | |||
| Karawang | |||
| Bekasi |
Until the end of 2021, the Company has 12 Branch Offices and 1 Non-Branch Office/Point of Sales spread across the island of Java.
PRODUCT, SERVICE, AND BUSINESS ACTIVITY INFORMATION
The Company's current business activities are in multipurpose financing for the purchase of used cars and working capital and investment financing.
As an application of the prudential principle, the credit approval ceiling for each level is not too large for each credit application. The authority to decide on credit is always reviewed periodically and determined based on the recommendation of a Credit Committee that needs to be approved by the Company's Commissioners. This is in line with the prudential financing principle adopted by the Company.
The Company has a credit policy that is expected to minimize the level of problematic receivables as much as possible in carrying out its business activities. To manage financing business activities and its efforts to always maintain a good collectibility level, collection activities are one of the keys to the Company's success.
INDONESIAN FINANCING COMPANIES ASSOCIATION (APPI) MEMBERSHIP
Membership Number: 1296/JKT/VI/15
Membership Period: January 1, 2023 to December 31, 2023
Membership Benefits: As an information hub for the Company to discuss and solve problems, provide input, hold meetings, and process data or materials related to Legislation. Membership also includes compliance with Financial Services Authority regulations.
National Seminar Activities APPI:
- National Seminar - Financing Challenges in the Middle of the Political Year:
January 31, 2023, attended by:- Mr. Nasser Atorf (Commissioner)
- Mr. Agustinus Budi Antoro, SE (Compliance Director)
- Mr. Andrew Ludy (Business Director)
Here are the attached Certificates:
- National Seminar - New Era of Financing Industry:
June 6, 2023, attended by:- Mr. Seo Jisu (President Director)
- Mr. Chang Won Suk (Finance Director)
- Mr. Andrew Ludy (Business Director)
Here are the attached Certificates:
- International Seminar - Future of Digitalization in Multifinance Industry:
August 1, 2023, attended by:- Mr. Park Dong Wook (President Commissioner)
- Mr. Seo Jisu (President Director)
- Mr. Chang Won Suk (Finance Director)
Here are the attached Certificates:
- National Seminar - Economic Outlook 2024:
October 3, 2023, attended by:- Mr. Agustinus Budi Antoro, SE (Compliance Director)
Here are the attached Certificates:
SIGNIFICANT CHANGES IN 2021
In 2021, there were no significant changes, only business activities and the economy adjusted to the Covid-19 Pandemic situation.
SUSTAINABILITY GOVERNANCE
The Company believes in the importance of consistent implementation of corporate governance at every level of the organization and every company activity. The Company's governance structure, which describes the management of Good Corporate Governance (GCG) within the Company, includes 3 (three) main organs of the Company, namely:
General Meeting of Shareholders (GMS)
As a forum for shareholders to make strategic decisions for the Company's sustainability.
Board of Commissioners
Responsible for supervision.
Board of Directors
Functions to manage the Company's operations and business. This structure is in accordance with Law Number 40 of 2007 concerning Limited Liability Companies and Financial Services Authority Regulation No. 30/POJK.05/2014 concerning Good Corporate Governance for Financing Companies in conjunction with Financial Services Authority Regulation No. 29/POJK.05/2020 concerning Amendments to Financial Services Authority Regulation No. 30/POJK.05/2014 concerning Good Corporate Governance for Financing Companies.
In building a culture of Sustainable Finance, the Company has prepared the 2023 and 2024 Sustainable Finance Action Plans, where the overall implementation of sustainability governance is the responsibility of all Company stakeholders, including the Board of Commissioners and the Board of Directors who are involved in its supervision.
MANAGEMENT COMPETENCY DEVELOPMENT
| Material | Speaker | Participants |
|---|---|---|
| Collection Profession | SPPI | 17 Collection Employees of PT Sinarmas Hana Finance in 2021. |
| Basic Managerial Financing | SPPI | 9 Employees at least at the Supervisor level of PT Sinarmas Hana Finance in 2023. |
| National Seminar “Financing Challenges in the Middle of the Political Year” on January 31, 2023 | APPI | Attended by Mr. Nasser Atorf (Commissioner), Mr. Agustinus Budi Antoro, SE (Compliance Director), Mr. Andrew Ludy (Business Director). |
| National Seminar “New Era of Financing Industry” on June 6, 2023 | APPI | Attended by Mr. Seo Jisu (President Director), Mr. Chang Won Suk (Finance Director), and Mr. Andrew Ludy (Business Director). |
| International Seminar “International Seminar: The Future of Digitalization in Multifinance Industry” on August 1, 2023 | APPI | Attended by Mr. Seo Jisu (President Director), Mr. Chang Won Suk (Finance Director), and Mr. Park Dong Wook. |
| Seminar on Transfer and Recognition of Risk Management Certification on August 1, 2023 | APPI | Attended by Mr. Agustinus Budi Antoro, SE (Compliance Director). |
ENVIRONMENTAL PERFORMANCE
In order to support environmental conservation, the Company carries out environmentally friendly operational activities in accordance with the commitments and plans made from year to year. The Company participates in environmental conservation efforts with the aim of creating a better life. The Company's participation is realized through policies, strategies, and actions that have been described above, such as reducing paper consumption, replacing room cooling machines with more energy-efficient ones, using tumblers which automatically reduce dishwashing soap, etc.
The Company's commitment to environmental conservation is realized through the use of energy and materials in daily operational activities. The Company has a policy of using energy and materials effectively and efficiently.
PAPER USAGE
The policy of using paper as an important material in operational activities continues in 2023. The Company is implemented with efficient paper use. The Company always urges employees to minimize the use of new paper and encourages the use or utilization of used paper that can still be used in the work environment.
The Company has also used photocopy and printer machines equipped with PIN & Job Storage, so that every use and printing can be controlled and monitored according to the needs that are really necessary.
In addition, the photocopy and printer machines used can print double-sided documents, thus minimizing the use of large amounts of paper.
ELECTRICITY USAGE
In the wise and efficient use of electricity continues in 2023, the Company follows the policies of the building management where the Company rents office space that utilizes electricity supplied by the State Electricity Company (PLN).
The electricity usage policy implemented is the restriction of AC usage time from 08.00 to no later than 17.00 WIB, in addition, lighting is also limited to only those that are still in use.
The Company does not record the use of paper, water, and electricity in volume. The recording of energy and material usage is done in the form of costs incurred per month by the Company as a whole.
E – MEMO
E – Memo is a software developed internally by the Company aimed at facilitating and shortening daily approvals. Previously, it always used paper and consumed a lot of print ink and required wet signatures from related parties to management, but now just by using the E – Memo system, everything is easy and runs smoothly.
Paper usage has also decreased by up to 65% and printers are rarely used. Although there are still some things that require the use of paper and ink as well as wet signatures, such as important and valuable documents.
RESPONSIBILITY FOR THE DEVELOPMENT OF SUSTAINABLE FINANCIAL PRODUCTS AND/OR SERVICES
The Company, in providing financing to debtors, always provides equal (fair) services, transparent information, and maximum consumer protection. The Company considers the following financing distribution limits:
- Payment of a down payment of a certain percentage of the car price;
- The credit term is a minimum of 12 months and a maximum of 4 years;
- Used cars that we finance are under 10 years old;
- Types of used cars that we do not finance are Ford, Datsun, Nissan, Chinese-made cars, the lowest/standard type in each brand (except Toyota Avanza type E);
- During the financing period, the car is protected with risk mitigation in the form of a fiduciary certificate and vehicle insurance.
Fees Charged by the Company to Debtors are:
- Survey fee;
- Notary fee;
- Provision fee;
- Administration fee;
- Insurance fee;
- Early repayment fee.
The above financing distribution policy has had a positive impact, both on the Company and the debtor.
The Company always provides clear information to prospective debtors before the debtor finally decides to use the Company's financing services. The completion of the Financing Application Form is done by the prospective debtor themselves along with the information provided by the Company's staff and will be replaced with an online format in the future to prioritize security and consumer protection.
The Company also provides a customer complaint channel where this channel can be used by debtors to file complaints about the products and services provided by the Company. Including complaints about possible violations of debtor privacy or loss of debtor data in the Company's database.