20210430101537SR 2020 PT Indo Kordsa TBK (English)

Table of Content
Performance Highlights 2020 04
Awards and Certifications 06
Message from Director 08
Responsibility for Sustainability Report 09
About Sustainability Report 10
Company Profile 18
Governance 30
Economic Performance 38
Environmental Performance 42
Social Performance 51
Standard GRl Index 60
Index POJK No.51/POJK.03/2017 62
SDG’s 63
Feedback Sheet 65
3
PT. Indo Kordsa, Tbk | www.indokordsa.com
01 PERFORMANCE
HIGHLIGHTS
2020
Economy
Net Total Total
Sale Asset Debt
168.492.294 263.740.526 55.218.439
Company Total
Loss Capitalization
4.432.414 1.022.117
Social (203-1)
ISMO (IndoKordsa Sustainability Movement) describes Indo Kordsa’s commitment in the form of
corporate responsibility to 3 pillars:
People Planet Profit

Social Environment Economy
4
Indo Kordsa Sustainability Report 2020
March 2020
Online Socialization of Coronavirus (COVID-19) Prevention Efforts.
The purpose of this socialization is to protect the Company’s employees from the COVID-19 pandemic by
complying with the health protocol regulations established by the government .
April 23, 2020

Face Mask Donation to Three Villages.
The company donated masks to each of the villages located around the Company, namely Sanja Village,
Sukahati Village, and Karang Asem Timur Village.
May 15, 2020

Face Mask Donation to Sub-District of Citeureup.
The Company donated 100 boxes of masks to Citeureup Sub-District in the context of caring for the
prevention of COVID-19 to the area around the factory. The aid was received directly by the Head of
Citeureup Sub-District.
Environment
Indo Kordsa’s responsibility, is by participating and preserving the environment through Indo Kordsa’s efforts
to recycle, reuse, compost processing which is proof of Indo Kordsa’s responsibility to the environment.
Total water withdrawal: (m3) Waste Management: CO2 GHG Emissions
2020 14.095
tCO2e
River (surface), lake, or
Total weight of hazardous waste,
sea water
with a breakdown based on the
Tons following disposal methods if
applicable:
Tons
Total weight of non-hazardous
waste, as described according
to the following disposal method
Tons if applicable: (Total domestic
waste + reuse of sorted internal
+ waste used by external
recycling).
Tons
Total volume of water

recycled usage: (m3)
2020 38.430 Transported

hazardous waste
Treated hazardous
waste (filter press
cake latex)
Tons Tons
5
Awards
and Certifications (102-12)
• Golden Taxpayer from the Directorate General of Taxation.
• Crowned as a loyal customer of PT. PGN since the Company became its customer in 1984 (34
years) from PT. Perusahaan Gas Negara Tbk (PGN), December 15, 2018
• Anti-Corruption Awards From the Directorate General of Customs and Excise Quality
Management System ISO 9001: 2015 by Lloyd’s Register Indonesia.
• Occupational Health and Safety Management System Certificate from the Ministry of Manpower
of the Republic of Indonesia for PT Indo Kordsa, Tbk and PT Indo Kordsa Polyester. Issued on
September 17 2020 and is valid for three years.
• Environmental Management System ISO 14001: 2015 by Lloyd’s Register Indonesia. Valid until
May 18, 2023.
6
• 100 Fastest Growing Companies Award from Infobank Magazine.
• Best Trade Financial Solution Award, Award from The Assets Triple A among all companies in
Indonesia for successfully increasing working capital by using the Letter of Credit import facility
in collaboration with Standard Chartered Bank.
• Stars Award 2019 - Global Synergy Category: Security Operating Center from Kordsa.
• Kordsa’s All Stars - Cost Improvement Category Award.
• All Stars Award - Best Total Productive Maintenance from Kordsa.
• All Stars Award - Best Kordsa Improvement Team from Kordsa.
• All Stars - Global Sinergy from Kordsa Category: GTPM-P.176 New Gen. Polyester Yarn
Development, GTM-P.288 development of New Generation Low DSI Polyester Fabrics.
• All Stars Award - Commercial Approval Success from Kordsa Category: Hankook Hungary NY.
• All Stars Award - Best Total Productive Maintenance from Kordsa.
• Best Supplier on Implementing Quality Assurance System.
• Worker Champion Award (Champion I) in the Manufacturing Sector, West Java Province in
2019, from the Government of West Java Province.
• TEMPO Country Contributor Awards 2019. This award is given to 23 public companies from
631 selected public companies. The parameters used by the assessment team were as follows:
(1) Company Tax Turnover Ratio (CTTOR); (2) Effective Tax Rate (ETR); and (3) Payment of
Company Annual Taxes.
• Corporate Annual Financial Report Award from the Ministry of Trade of the Republic of Indonesia.
7
Message from
Director (102-14)
As a ‘Reinforcer’, Indo Kordsa

support every step towards a
better future. From time to time,
this support is transformed into
activities that have a positive
impact on economic, social
and environmental aspects.
Therefore, we are part of Kordsa,
proud to present the first edition
of the “2020 Indo Kordsa
Sustainability Report”.
From a broad perspective, from

the expectations and priorities
of Kordsa employees, clients,
shareholders and investors
regarding sustainability, in the
coming period, Kordsa will
focus on five main areas of the
United Nations Sustainable
Development Goals. The five
areas are: “Industry Innovation
and Infrastructure”, “Responsible
Consumption and Production”,
“Decent Work and Economic
Growth”, “Gender Equality”, and
“Quality Education”.
Ibrahim O. Yildirim
President Director
8
Through that perspective, we support better education by providing
academic scholarships to bright students in our community to support
better education. We believe that scholarships will provide opportunities
for children to improve their facilities and learning environment. In addition,
to build healthy and resilient communities, we also participate in improving
health facilities. We believe that strong education and health can be a pillar
that improves the economy of the surrounding community.
We believe that Indo Kordsa’s business also provides economic benefits to

the surrounding community, especially in developing mutually supportive
partnerships. We also embrace the surrounding community by inviting
local entrepreneurs to partner and grow together. We believe that the
environment has a big influence in strengthening and building the resilience
of our company.
To maintain a strong work ethic in our company, we always fulfill and comply
with any regulations set by the government; one of them is to maintain
and preserve biodiversity. We are putting our best efforts and resources
to minimize our carbon footprint by reducing energy consumption and
waste output through various programs and innovations. Therefore, on
this occasion, I would also like to express my gratitude to Kordsa’s life-
enhancers who have given their best initiatives to support the efficient use
of energy in their daily activities. We will always appreciate any changes
and efforts to improve a safe and comfortable workplace for all of us.
Committed to the vision of “Inspired to strengthen life”, we will continue to

be committed to strengthening lives and preserving the environment as well
as increasing the positive impact of our operations on everyone around us.
Responsibility for
Sustainability Report
Board of Commissioners and Directors of PT. Indo
Kordsa Tbk. has evaluated and claimed full responsibility
for the accuracy of the contents of this Sustainability
Report, including financial statements and other related
information.
Ibrahim O. Yildirim
President Director
9
02 ABOUT
SUSTAINABILITY
REPORT
10
This report is prepared based on POJK No.51/POJK.03/2017 concerning the
Implementation of Sustainable Finance for Financial Service Institutions,
Issuers and Public Companies as well as the GRI Standards (GRI Standards)
which are officially effective as of July 1, 2018.
11
About Sustainability
Report
2020 Indo Kordsa Sustainability Report

is the first report published by PT Indo
Kordsa Tbk., and is submitted for the
period January 1st to December 31st, 2020.
This report is planned to be published
annually. The information conveyed in the
report comes from the Head Office of PT
Indo Kordsa, Tbk, except for consolidated
financial data, including financial data
from all Subsidiaries. (Disclosure 102-45,
102-50, 102-51, 102-52).
The publication of this report is part of

the implementation of the principles
of Good Corporate Governance,
namely Transparency, Accountability,
Responsibility, Independence and
Fairness. The publication of the report is
also a form of our commitment to comply
with the provisions of Article 66 paragraph
2c, Law No. 40 of 2007 concerning
Limited Liability Companies (PT), which
requires PT Indo Kordsa, Tbk to submit
a report on the implementation of Social
and Environmental Responsibility (TJSL)
in the Annual Report. The issuance of
this report is also our effort to fulfill our
obligations as stipulated in OJK Regulation
No. 51/POJK.03/2017 concerning the
Implementation of Sustainable Finance for
Financial Service Institutions, Issuers, and
Public Companies.
12
This report has been prepared based on
POJK No.51/POJK.03/2017 concerning the
Implementation of Sustainable Finance for
Financial Services Institutions, Issuers and
Public Companies as well as the GRI Standards,
which officially took effect as of July 1, 2018.
The GRI Standards are the reference that
issued by the Global Sustainability Standards
Board (GSBB) - an institution established by
the Global Reporting Initiative (GRI) to handle
the development of sustainability reporting
standards. In accordance with the options
provided in the GRI Standards, namely Core
Choices and Comprehensive Choices, this
report has been prepared in accordance with
the GRI Standards: Core Choices. (102-54)
PT Indo Kordsa, Tbk strives to convey all

information that needs to be disclosed, as
specified in the GRI Standards. All information
that is fulfilled in this report is indicated by
the inclusion of the GRI Standard disclosure
number at the back of the relevant sentence or
paragraph. This is expected to make it easier
for readers to find related information for each
disclosure. Complete data on the compatibility
of company information with the GRI Standard
Index is presented at last page of this report.
(102-55, 102-48, 102-56)
13
Content Determination
Process (102-46)
Report is prepared based on the principles of Sustainability Report, namely
the principles of content and quality.
01
Content Principles
1
Stakeholder involvement: Stakeholders are involved in determining their opinion on the
importance of issues that need to be addressed in the report. Involvement was carried
out through focus group discussions and the distribution of a Materiality Test survey with
respondents from the company’s internal and external stakeholders. (102-43)
2
Sustainability Context:
The report is prepared in accordance with the Company’s strategy for the year and in line with
the context of sustainable finance.
3
Materiality:
Material topics are the main topics used in preparing this report.
4
Completeness:
Information presented in narrative and numeric as qualitative and quantitative information to
provide completeness for readers.
14
02
Quality Principles
Balance:
Information related to outcomes and achievements, as well as challenges, is conveyed
in accordance with company conditions
Comparability:
Efforts are made to ensure that the data presented in the report is presented in the last
3 years.
Accuracy:
The figures and information have been checked internally by the Company to ensure
their accuracy.
Punctuality:
This report is presented on time together with the Annual Report as material for
discussion at the General Meeting of Shareholders.
Clarity:
The information presented in the report is easy to understand.
Reliability:
The data and information presented come from data sources that have been approved
and verified by the authorities.
15
Determination of
Report Content
Identification: Validation: Overview:
Relevant sustainability topics are All material topics to be presented in Input from stakeholders, is used to
identified based on the industry the report are approved, reviewed, & improved quality of this sustainability
characteristics of the company type validated by management team. report.
and the impact on stakeholders.
Materiality Survey Result (102-46)
To obtain material topics in the report, PT Indo Kordsa, Tbk has conducted a Focus Group Discussion (FGD) located at PT Indo
Kordsa, as well as a Materiality Test by conducting surveys from internal and external stakeholders. Respondents were asked
to fill in and rate 14 potential Material Topics that had been agreed upon in the FGD, and obtained 6 (six) Material Topics. In
this report, Material Topics are topics that receive a score of 4 (Important) and 5 (Very Important) from the respondent. The 6
material topics are Economic Performance, Employment, Occupational Health and Safety, Training and Education, Diversity
and Equal Opportunity.
Change in Material Topics (102-49)

In accordance with the involvement of stakeholders through FGDs and Materiality Test Surveys, material topics obtained in this
report are 6 (six) Material Topics.
16
Limitation of Impact
on Material Topics
and Management
Approach
(102-47, 103-01, 103-02, 103-03)
The material topics in this Report, as stated in the GRI Standards, are topics that have
been prioritized by the organization for inclusion in the report. The dimensions used
to determine priorities, among others, are impacts on the economy, environment, and
society. The impacts in this report include those that are positive. The determination of
material aspects and boundaries is based on issues that have a significant impact on the
company, Subsidiaries and all Stakeholders.
Feedback (102-53)
For two-way communication to happen, we provide a Feedback Sheet at the end of this
Report. To our stakeholders, we invite you to submit suggestions, input and questions
regarding the data and information presented in this report so that we can improve the
quality of our reports and our future sustainability performance.
Access to Information
on Sustainability
Reports
PT Indo Kordsa, Tbk provides accessible information for all stakeholders, as well as
the public, to access this Sustainability Report. If you have any questions regarding the
contents of the Report, please contact: (102-53)
PT. INDO KORDSA, Tbk

Jalan Pahlawan, Desa Karang Asem Timur
Citeureup, Bogor 16810, Indonesia
Tlp. (62-21) 8752115
Fax. (62-21) 879 12252 / (62-21) 875 3934
www.indokordsa.com
17
03 COMPANY
PROFILE
PT Indo Kordsa, Tbk in Brief
The company was founded in 1981 under the name PT Branta Mulia as the
main supplier of premium tire reinforcement materials in the Southeast Asia
region. Since its establishment, the Company has a mission to produce
products with number one quality, performance with high professionalism and a
strong commitment to provide excellent service to customers. With the support
of quality human resources, the Company has succeeded in maintaining its
business continuity to this day.
18
In 1985, the Company started operations at its first tire cord fabric (TCF) factory in Citeureup, Bogor, West Java. Subsequently,
commercial operations began on April 1, 1987. The Company’s shares were listed on the Jakarta Stock Exchange and the
Surabaya Stock Exchange in 1990 under the name PT Branta Mulia Tbk.
Developments and
improvements have been
made for the progress of
the Company, including:
1. In October 1990, the Company expanded in Thailand by establishing a joint venture company named Thai Branta Mulia Co.
Ltd. In 1993, Thai Branta Mulia Co. Ltd. started its TCF production in Ayutthaya, Thailand.
2. The Company in collaboration with Teijin Limited Japan established a joint venture company named PT Branta Mulia Teijin
Indonesia in early 1996 to produce polyester yarn and the first commercial production started in 1997 where the factory is
located in Citeureup, Bogor, West Java.
In 1997, DuPont Chemical and Energy Operation Inc. acquired 19.78% of the Company’s shares. The acquisition gave a new life
to the company because it creates a strategic alliance for the Company’s business. The cooperation ended in 2006 when DuPont
sold all of its shares to several of the founding shareholders of the Company. In 1999, the Company revoked the listing of its shares
on the Surabaya Stock Exchange (SSE). In 2000 the Company increased its share ownership in Thai Branta Mulia Co Ltd from 49%
to 64.19%.
In 2006, Kordsa Teknik Tekstil A.S. (Kordsa), a subsidiary of Sabanci Holding Group, Turkey, acquired 51.3% of the Company’s
shares. Then in 2018, Kordsa again increased its shares to 61.59%. The company then changed its name to PT Indo Kordsa Tbk.,
While PT Branta Mulia Teijin Indonesia changed its name to PT Indo Kordsa Teijin.
In 2008 the Company increased its share ownership in PT Indo Kordsa Teijin to 99.90% through the purchase of shares owned
by Teijin Fibers Limited, Japan. So that in 2009, PT Indo Kordsa Teijin changed its name to PT Indo Kordsa Polyester (IKP). In the
following year, the Company continued its modernization and production efficiency efforts and expanded its production capacity
by completing a comprehensive modernization of the nylon yarn factory, building a tire cord factory No. 2 (TCF 2) is also expanding
in the polyester yarn factory. The TCF 2 facility and expansion in the polyester yarn factory were inaugurated in early 2015 by the
Minister of Industry of the Republic of Indonesia, Mr. Saleh Husin and the Regent of Bogor, Ms. Nurhayanti.
Currently, the Company’s TCF factories can produce tire cord fabrics up to 60 kilo tons per year. Meanwhile, the production of
polyester and nylon yarns is 39 kilo tons and 24 kilo tons. In 2019, the Company continued to optimize the implementation of Total
Productive Management Initiatives (TPM) and various strategies of excellence to take advantage of growth opportunities even in
these challenging conditions. (102-1)
19
Company
Identity
(102-1, 102-2, 102-3, 102-4, 102-5, 102-13)
PT. Indo Kordsa, Tbk

Jl Pahlawan,
Desa Karang Asem Timur,
Citeureup, Bogor, 16810
Indonesia
Legal Basis of
Establishment
Ministerial Decree YA5 / 88/3.
Dated March 2, 1982
Establishment Year
1981
Legal Entity Status

Foreign Investment (PMA)
Stock code
BRAM
Number of employees
1.102
Membership
• AmCham Indonesia American

Chamber of Commerce in Indonesia
Telp : 021 8752115
• APINDO The Employers’ Association
Fax : 021 8753934
www.indokordsa.com of Indonesia
• HIBERKIBRA - Neighborhood
Corporate Association
• Indonesian Public Listed Companies
Association
• Indonesian Corporate Secretary
Association
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VISION
Inspired to strengthen life.
MISSION
Providing high quality
reinforcing material around the
world.
Initiative & Human Resources Pillars
Business Advantage Growth Innovation

•Operational Excellence. • Growth in the Tire Industry. • Innovations in Materials Science.
• Digital Transformation. • Growth in the Composites Industry. • Innovations in Tire Technology.
• Effective Financial Aspects • Growth in New Industries. • Innovations in Composite
and Risk Management. Technology.
• Commercial Advantage. • Effective Innovation
Management.
Potential Motivation Utilization
Market
PT Indo Kordsa, Tbk is committed to managing the production
process professionally and providing the best service for each of its
customers. PT Indo Kordsa, Tbk’s customers as of 2020 are consisted
Served (102-6) of Indonesia 27.54%, Japan 11.49%, Korea 7.69%, Vietnam 5.93%,
Taiwan 3.95%, and others 43.40%. With the conclusion that the market
PT Indo Kordsa Tbk serves domestic and overseas.
21
Company
Culture (102-16)
01
SHE (Safety and Health & Work Environment).
Our priority is human. “We work carefully, discipline and programmed.
Following the SHE rules, we create a safe work area “.
02
Ethics.
1. I comply with company ethics and regulations
2 I behave honestly in every applicable legal action.
03
Focus on the Customer.
1. I listen to and understand customers’ voices, and meet their needs.
2 I provide the best solutions to customers on time.
04
Courage.
1. I make a significant contribution, take measured risks and take responsibility for the company’s
success.
2. I think innovatively to develop new products, technology, processes, and self-performance.
22
05
Passion.
1. I work with all my heart to achieve my best.
2. I am unyielding and enthusiastic to achieve company targets.
06
Collaboration.
1. I work with all interested parties including colleagues, suppliers and
customers.
2. I proactively contribute, be ready to help, and learn from others.
07
Continuous Improvements.
1. I actively participate in the CI program by identifying problems, analyzing
root causes, and making improvements and standardization.
2. I care about the problem at hand and am ready to come up with ideas for
improvements.
23
Organizational
Structure
24
25
Company
Scale (102-7)
2018 1.196 people
2019 1.149 people
Number of 2020 1.121 people

Employees
Net
Sales 2018
$264.440.260
2019 2020
$245.619.303 $168.492.294
26
Capital Expenditure
2018$7.400.976
2019$4.649.061
2020$1.022.117
Production Quantity
2018Tire Cord Fabric 57,026 kilo tons / year
Polyester yarn 22,802 kilo tons / year
Nylon yarn 39,875 kilo tons / year
2019Tire Cord Fabric 49,684 kilo tons / year

2020
Tire Cord Fabric 41,309 kilo tons / year

27
Employees (102-8, 405-1)
Employees are one of the important assets for PT Indo Kordsa, Tbk in running a business. As of December 31, 2020, total number
of employees was 1,121, a decrease of 47 people compared to 2019, which was 1,149 people. Employees data in this report
was obtained from the Human Capital database as of December 31, 2020. All company operational activities are carried out by
employees which are either permanent, non-permanent (contract) or trainees and based on employment contracts based on
region.
Total number of employees based on employment contracts (permanent

and temporary), based on gender.
Divided by region:
28
Supply Chain (102-9)
In running our business, we collaborate with

suppliers of goods and services. Type of
suppliers :
Total
1.274
2018
Vendors
Contractor: 4 vendors
Cont. and material: 32 vendors
Material: 656 vendors
Mat. and service: 279 vendors
Service: 301 vendors
Others: 2 vendors
We are committed to involving local suppliers,

namely suppliers whose business locations
Total
1.395
are located around the company’s operational
offices. With this policy, the company is
2019
Vendors
Contractor: 4 vendors optimistic that it can play a role in empowering
Cont. and material: 32 vendors local suppliers, as well as developing and
Material: 746 vendors improving the economy of the local community.
The local suppliers in this report are suppliers
Others: 2 vendors whose business locations are within the same
province as the company’s operations.
Total
1.441
2020
Vendors
Contractor: 4 vendors
Cont. and material: 32 vendors
Material: 792 vendors
Others: 2 vendors
29
04 GOVERNANCE
30
31
Structure of Company
Governance (102-18)
The implementation of Good Corporate Governance (GCG) in the Company is carried out in accordance
with the provisions of laws and regulations in Indonesia and adapting GCG best practices that are generally
accepted. The basis of regulations related to the implementation of GCG in Indonesia, among others, refers
to the Financial Services Authority Regulation (POJK) regarding the Company’s status as an issuer, including:
• POJK No. 15/POJK.04/2020 concerning Planning and Execution of General Meetings of Shareholders
for a Public Companies.
• POJK No. 33/POJK.04/2014 concerning the Board of Directors and Board of Commissioners for
Listed or Public Company.
• POJK No. 34/POJK.04/2014 concerning the Nomination and Remuneration Committee for Listed or
Public Company.
• POJK No. 35/POJK.04/2014 concerning the Corporate Secretary in Listed or Public Company.
• POJK No. 21/POJK.04/2014 concerning the Implementation of GCG.
• POJK No. 31/POJK.04/2015 concerning Information or Material Facts Disclosure by a Listed or
Public Company.
• Circular Letter (SE) of OJK No. 32/SEOJK.04/2015 concerning Governance Guidelines for Public
Companies.
• POJK No. 8/POJK.04/2015 regarding Websites of Listed or Public Company.
• POJK No. 55/POJK.04/2015 concerning the Formation and Guidelines of the Audit Committee.
• POJK No. 56/POJK.04/2015 concerning Formation and Guidelines for Establishment of the Internal
Audit Unit Charter.
• POJK No. 13 / POJK.03 / 2017 concerning Use of Public Accountant Services and Public Accounting
Firms and Financial Service Activities.
In addition to these regulations, the Company has also adapted provisions related to the implementation
of GCG which are included in the Indonesian GCG Guidelines by the National Committee for Governance
Policy (KNKG).
GCG Implementation
Mechanism
Consistently, the Company improves corporate governance mechanisms and structures to ensure accountability in business
processes and encourages checks and balances among all Company Organs. Based on the principles of GCG, the Company
has implemented a GCG structure and mechanism consisting of the main organs and supporting organs. The main organs of
the Company include the General Meeting of Shareholders (GMS), the Board of Commissioners, the Board of Directors, the
Audit Committee and the Nomination and Remuneration Committee as the Board of Commissioners Committee. These main
organs are supported by the supporting organs of GCG, including the functions of Internal Audit and Corporate Secretary. All
Company Organs work together in accordance with the basis of GCG regulations and guidelines with a clear division of tasks
and responsibilities. The Company also regulates all Company Organs to prepare a work plan and submit an annual activity
report as an evaluation of the realization of the concerned work program.
32
GMS
The General Meeting of Shareholders (GMS) is the highest authority in the Company. The GMS is a
forum where Management, represented by the Board of Commissioners and the Board of Directors,
submits accountability reports to shareholders and stakeholders related to the implementation of
tasks during the fiscal year concerned. The Company General Meeting of Shareholders (GMS)
is the highest authority in the Company. The Company holds a GMS in accordance with the
provisions in the Financial Services Authority Regulation Number 15 / POJK.04 / 2020 concerning
the Planning and Execution of the General Meeting of Shareholders for a Public Companies.
There are two types of GMS, namely the Annual GMS and the Extraordinary GMS. The Annual
GMS (AGMS) is a GMS that is held regularly, while an Extraordinary GMS can be held at any time
if deemed necessary.
Board of Commissioners
The Board of Commissioners is the Company’s organ that has the duty and authority to supervise
the management activities carried out by the Board of Directors. The Board of Commissioners is
also tasked with providing input regarding the policies of the Board of Directors, the Company’s
development plans, the Company’s work plan and Annual Budget, the implementation of the
provisions of the Articles of Association, the implementation of GMS resolutions and compliance
with all applicable laws and regulations. In carrying out its duties, the Board of Commissioners
acts collegially.
In accordance with the Company’s Articles of Association, the Board of Commissioners consists
of at least 3 (three) members. All Commissioners are appointed by the General Meeting of
Shareholders (GMS) and the term of office starts from the closing of the GMS to the closing of
the GMS in the 5th (fifth) financial year from the date of appointment. Members of the Board of
Commissioners can be reappointed after the term of office ends. The GMS has the authority
to dismiss all members of the Board of Commissioners at any time before the term of office
ends by stating the reasons for the dismissal. However, the relevant members of the Board of
Commissioners have the opportunity to present their defense before the GMS. The composition
of the Board of Commissioners also accommodates the position of Independent Commissioners
who are appointed from independent parties. Independent Commissioners do not have a conflict
of interest or other matters that could affect their independence.
Referring to the Company’s Articles of Association, the Board of Commissioners has the following
duties and responsibilities:
1. Supervising the management of the Company carried out by the Board of Directors and
providing advice and approval if deemed necessary with regard to the policies of the
Board of Directors in the interest of the Company. As well as carrying out duties, powers
and responsibilities in accordance with the provisions of the Articles of Association of the
Company and the resolutions of the GMS as well as the prevailing laws and regulations.
2. Following the development of the Company’s performance and immediately report to the
GMS if the Company shows signs of a drastic decline in performance which could have
a material impact on the Company’s business activities, accompanied by appropriate
solutions that must be taken by the Board of Directors.
33
Independent Commissioner
Based on OJK regulation No. 33 / POJK.04 / 2014 concerning Directors and Board of Commissioners of Issuers or Public
Companies, the number of Independent Commissioners is at least 30% of the total members of the Board of Commissioners.
As of December 31, 2020, the Company has complied with the regulation by appointing 2 (two) Independent Commissioners.
Directors
The management of the Company is the duty of the Board of Directors. As the Company’s organ, the Board of Directors has a
special responsibility in managing the Company and achieving the Company’s targets as stated in the Company’s Work Plan
and Budget (RKAP). The Directors work collectively with the division of duties among the Directors in accordance with the
Articles of Association of the Company.
Board of Directors is appointed through the GMS mechanism for a certain period of time, starting from the closing of the GMS in
the year of their appointment to the closing of the GMS in the fifth year after the date of their appointment. The GMS may dismiss
a member of the Board of Directors at any time if the decision made by the Board of Directors is contrary to the interests of the
Company and the prevailing laws and regulations. The Board of Directors carries out its duties and responsibilities in accordance
with the Board Charter / Board Manual which was prepared in accordance with the provisions of the Financial Services Authority
(OJK) No.33 / POJK.04 / 2014 concerning the Board of Directors and Board of Commissioners of Issuers or Public Companies.
The Board of Directors of the Company collectively has the following duties and responsibilities:
1. Manage the Company in accordance with the direction of the shareholders;

2. Implementing a system of internal control, good corporate governance and managing
and protecting the Company’s assets;
3. Representing the Company inside and outside the court.
Audit Committee
The Company has established an Audit Committee since 2007 as a Committee under the Supervision of the Board of
Commissioners to assist the Board of Commissioners in carrying out its supervisory and advisory functions, especially in carrying
out duties related to audit activities. The establishment of the Audit Committee refers to POJK No.55 / POJK.04 / 2015 concerning
the Formation and Implementation of Audit Committee Duties, which requires all companies listed on the Stock Exchange or
public companies to form an Audit Committee. The Audit Committee Charter was ratified by the Board of Commissioners on
January 5, 2015. The charter describes the objectives, structure and composition, qualifications, responsibilities, authority and
procedures of the Audit Committee meetings.
The Audit Committee has at least 3 (three) members. An Independent Commissioner who is appointed to become a member of
the Audit Committee automatically becomes the Chairman of the Audit Committee. The Board of Commissioners appoints two
other independent members as members of the Audit Committee. The Board of Commissioners, at its sole discretion, may add
members to the Audit Committee if deemed necessary.
34
Internal Audit Unit
The Internal Audit function is carried out by the Internal Audit Unit which was established to provide independent and
objective opinions including consultancy activities and special investigations required by the Board of Directors, the Board
of Commissioners, the Audit Committee or other management parties. The establishment of the Internal Audit Division of the
Company is in accordance with POJK No.56 / POJK.04 / 2015 concerning the Establishment and Guidelines for the Establishment
of an Internal Audit Unit for Public Companies.
The purpose of Internal Audit is to provide an independent, objective opinion, consultancy services, and also carry out
specific investigations as requested by the Board of Directors, Board of Commissioners, Audit Committee or senior executive
management, all of which are designed to provide added value and improve the Company’s operations. Internal Audit helps the
Company achieve its objectives through a systematic, disciplined approach to evaluate and improve the effectiveness of risk
management, control, and compliance with applicable laws and regulations.
35
Risk Management (102-11)
In line with increasing business challenges and competition, the Company faces various risks related to business and
operational activities. To build a sustainable business, the Company has prepared a series of management initiatives ranging
from identification, mitigation and evaluation of risk management. The risk management function in the Company is carried out
by the Board of Directors. These functions include preparing and designing key risk indicators to map the risk profile and plan
further risk mitigation to be implemented in the Company.
Code of Conduct (102-16)
The Company’s Code of Conduct is a norm that must be obeyed by the Company and all levels of the Company’s management.
The Code of Conduct is applied as an ethical guideline in the Company. The objectives of implementing the Company’s Code
of Conduct are:
1. Increasing the credibility of the Company, because ethics has become the daily culture of the
Company. With the existence of a code of Conduct, all employees are bound by the same ethical
standards so that similar policy/decision making will be achieved.
2. Helping eliminate gray areas (unclear areas) in the field of ethics, including receiving gifts.
3. The Code of Conduct explains how the Company upholds its social responsibility.
4. Helping the Company to control itself (self-control).
The Code of Ethics regulates the Business Ethics and the Supporting Policies for the Code of Conduct in the
Company. The guidelines consist of regulations regarding legal responsibility, responsibility to customers,
responsibility to employees, responsibility to shareholders, responsibility to suppliers / business partners,
responsibility to competitors, responsibility to the environment, community, society and humanity and
responsibility to protect the image and reputation of the majority shareholder. The Code of Conduct also
regulates other policies such as Safety, Health and Environment (SHE) policies, policies related to employees,
Company assets and financial integrity, business partners and government as well as the Kordsa Group Share
Transaction Policy.
The Company socializes the Code of Conduct, including:
1. Socialization through the Company’s internal website.

2. Provide online training.
3. Providing booklet socialization.
4. Creating posters of socialization content.
5. The Code of Conduct compliance form, which is required to be filled in again at the beginning of each year by all employees.
The Code of Conduct applies to all Company personnel including members of the Board of Directors, members of the Board of
Commissioners and all employees. All forms of violation of the Code of Ethics will be processed in accordance with applicable
procedures and provisions in the laws and regulations.
PT Indo kordsa Polyester (a subsidiary with the same address as the

company) and Thai Indokordsa (a subsidiary located at Rojana industrial
park, Uthai, Ayutthaya, Thailand) (102-45)
36
37
05 ECONOMIC
PERFORMANCES
38
39
Overview of Financial
Statements 2020 (201-1)
*In United States Dollars
40
Of the total purchase of PT Indo Kordsa amounting to USD 229,323,414.58,
there were purchases of local products amounting to USD 6,643,700.17 or
2.89% of the total purchases as a whole. (204-1)
PT Indo Kordsa conducts anti-corruption training “KEEP - Business

Ethics” and is a member in anti-corruption and bribery contained in the
Kordsa Ethics Board. (205-2)
41
06 ENVIRONMENTAL
PERFORMANCE
42
To support the implementation of go green, PT
Indo Kordsa, Tbk made various adjustments
and added features that support this concept.
Including processing waste, making bicycle
parking lots, and maximizing the large green open
space.
43
Concern for Evironmental
Conservation (307-1)
PT Indo Kordsa, Tbk realizes that environmental conservation is a global issue that demands mutual attention and care. This is
inseparable from the deteriorating quality of the environment as a bad impact of ignorant human activities on the environment. As
a company that is oriented towards sustainability, we participate and fully support various pro-environmental activities. We also
embody environmental awareness through environmentally friendly company operational practices, among others by saving
energy and water which is increasingly limited in availability, saving paper use by implementing a paperless program, treating
waste, and reducing emissions.
Material (301-1, 301-2, 301-3)

In daily operations, PT Indo Kordsa, Tbk reuses materials from the production process in TCF1, TCF 2, Dipping Unit, NY and PE
as raw materials. During the reporting year, PT Indo Kordsa, Tbk used materials including;
TCF 1
TCF 2
44
Dipping Unit
NY
Paper Tube (pcs)
PE
The Company has a very high concern for environmental aspects. In all operational and business
processes, the Company always prioritizes the principle of protecting the environment. To ensure
compliance with environmental regulations, the Company has standardized its work processes and
mechanisms in accordance with the relevant environmental laws and regulations as implemented by the
Government of the Republic of Indonesia.
In May 2017, the Company has obtained ISO 14001: 2015 certification which is an international standard
for Environmental System Management. This certification is valid until 2023. The purpose of this
certification is to provide guidance to the Company in improving performance in the environmental sector
through saving resources that generate competitive advantages and gain the trust of stakeholders.
45
Reused Material
2018
TCF 1
2019
2020
TCF 2
NY
Paper Tube
46
PE
Hexcell26%, 25%, 14%
Papertube54%, 53%, 31% 2018
Palette42%, 47%, 19%

2019
2020
Reclaimed Products
and Packaging
Materials
Dipping Unit
47
Energy Consumption (302-1, 302-4)
The Company also encourages all Company personnel to participate in

energy saving initiatives which are implemented as part of the Energy
Saving Policy to encourage effective and efficient use of energy in daily
activities. The program that runs regularly every year is an energy saving
campaign to raise awareness of efficient energy use and several energy
saving projects.
48
Use of Water Sources (303-1, 303-3)
Another natural resource used in operations is water. The water source used comes from the river.
Total water
withdrawal:
(m3)
Total volume 201838.607

201938.706
of water
recycled usage. (m3)
202038.430
There have been no major construction projects in the factory area since 2018. Factory operations produce waste that
is controlled according to applicable regulations, so that it does not pollute the environment. Wastewater, Emissions and
Ambient Water are measured periodically according to regulations, there are no measurement parameters that pass the
quality standard. (304-2)
CO2 GHG Emissions (305-1, 305-2)
Waste Management (306-2, 306-4)

The Company implements a water treatment system that regulates a proper and correct waste disposal system. This system
is implemented as part of the Company’s operational activities for production wastes which are categorized as having certain
impacts and implications on the environment. The Company has completed guidelines regarding proper waste disposal
and handling procedures which are managed by the SHE Department and in accordance with applicable requirements
and regulations. Socialization related to waste management has been given to each of the Company’s employees to be
implemented appropriately. In addition, B3 waste management training has also been carried out sustainably and continuously.
49
Hazardous
Waste
Transport
Transported
hazardous waste
Treated hazardous
waste (filter press
cake latex)
Waste is transported
by certified transporter All suppliers of PT Indo Kordsa,
according to Tbk are 100% selected using
environmental criteria as a form
regulations of responsibility and company
concern. (308-1)
50
07 SOCIAL
PERFORMANCE
51
Employee
The number of
employees of PT Indo
Kordsa. Tbk as of
December 31, 2020 are:
1.121 people
Details of the number of employees are as follows: (401-1)
New Employee Recruitment and Employee Replacement
Total number and rate of new employees recruitment during the new
reporting period based on ages gender, and region.
GENDER
AREA
52
Employee Turn Over
Apart from being influenced by the number of recruitment, the number of employees of
PT Indo Kordsa, Tbk as of December 31, 2020 was also influenced by the reduction in
employees due to stopping work for various reasons, such as reaching retirement age,
resigning, being dismissed, or health reasons. Especially for employees who wish to
resign, in accordance with the Manpower Act No. 13 and the Collective Labor Agreement
(PKB) in effect, they must submit a resignation letter to their supervisor at least 1 (one)
month in advance.
GENDER
AREA
53
Employee Allowance (401-2)
Maternity leave
Yes
Life insurance
Yes
Preparation for
Retirement
Health care
BPJS Employment & - BPJS Pension Security
Private Insurance - DPLK Jiwasraya
- BPJS - TK
- Old Age Guarantee
54
Maternity Leave (401-3)
Maternity leave as the normative right
of female employees is given for 3
(three) months, namely 1.5 (one and
a half) months before giving birth and
1.5 (one and a half) months after giving
Total number of employees birth according to the calculation of
entitled to maternity leave, the obstetrician or midwife.
based on gender.
• All women workers:
3 months maternity leave.
• All men workers:
2 days paternity dispensation.
Total number of employees

Total number of who returned to work in
employees taking the reporting period after
maternity leave, by sex. maternity leave ended, by
gender.
Male Female
2018: 66 2018: 1 Male Female
2019: 63 2019: 2 2018: 66 2018: 1
2020: 62 2020: 2 2019: 63 2019: 2
2020: 62 2020: 2
Total number of employees

who returned to work after
maternity leave ended,
who were still employed 12
months after returning to
work, by gender.
From the figures above, all are still
it works, unless someone is resigned
or retired.
Rates of employees who

took maternity leave who
returned to work and were
retained, by gender.
• Operator • Technician •
• Engineer • Manager •
55
Health & Safety (403-1, 403-2, 403-3, 403-4)
The P2K3 team consists from Top Management to employee representatives through labor unions that are legalized by the
Manpower Office P2K3 ratification letter: 566.4.3304 / PK.WIL.I / K.3 / 2019. Starting from Top Management to Operators,
stated in the job description in the SHE-IK-MANUAL Manual, 1 person representative from each area manager and employees
are involved in the OHS organization at P2K3 (Committee for Occupational Safety and Health) and Other Groups (Emergency
Response Team, First Aid, AK3 Electric, AK3 Chemistry).
Health and safety topics Listed on CLA: 8 topics, as well as having an agreement with the union regarding the whole topic
(100%).
Training (404-1, 404-2, 404-3)
PT Indo Kordsa, Tbk is committed to continuously improving the competence of all employees through education and training.
The policy was taken so that employees become more proficient in carrying out their main duties and functions so that the targets
set by the company are achieved. During 2018, education and training organized by the company are as follows:
56
Table of Employee Skills Improvement Program
Programs to upgrade employee skills and transition assistance programs.
2018 2019- English Training

2020
- English Training
- English Training - Train The Trainer
- SIO Forklift, Crane
- Train The Trainers - SIO Forklift, Crane
- Fire K3 Training. Limited Room
- SIO Forklift, Crane Chemistry OHS Training, Genset, Room
- Training Data Science
- Training OHS Electricity, General, Limited, Scaffolding, Fire
- GRI Standards Certified
Welders, - Awareness of ISO 9001-2015 & IATF 16949-2016
Training
Limited Space, Scaffolding, Scissor Lift, - ISO 9001: 2015 QGuality Management
- Responsible Training Water
Elevator, Electricity, Altitude Internal Audit System & IATF 16949: 2016
Control (PPPA)
ISO 14001 Lead Auditor Automotive First & Second Party Auditor
- Training on Using Sound Level
- Training Calibration System - Training Calibration System
Meter Brand
Types and scope of

programs implemented Transitional assistance program
and assistance provided to facilitate
provided to improve continuous employability and
employee skills. management end of career due
to retirement or termination of
• Technical Skills • Soft Skills •
employment.
• Retirement Planning Training (2018 & 2019)
• Will propose for Online Retirement Planning
Training (due to COVID-19 pandemic)
57
Percentage Table of Employees Receiving Routine Reviews and Career Development
Percentage of employees who receive regular performance and career development reviews.
Percentage of total employees by gender and by employee category who received

regular performance and career development reviews during the reporting period
Percentage of total employees by gender and by employee category who received

regular career development reviews during the reporting period
(74 People)
(24 People)
(72 People)
(28 People)
(72 People)
(25 People)
58
Human Rights Assessment (412-2)
Employee training on human right policies and business ethics.
2018 2019 2020

662.5 hours (5%) 1.236 hours (93%) 1.313 hours (93%)
Evaluation of Social,
Employment, and
Supplier Performance
As a form of the company’s commitment to work safety, we have started the implementation of a supplier Safety Management
System that will work with the company through a supplier survey that was given at an early stage before being determined to
be a supplier to the company. Where all companies in the reporting year used selection against each supplier who will work
with PT Indo Kordsa, Tbk.
Each supplier who will be contracted and collaborate, must first meet the requirements set by the Company. The company not
only considers the economic value aspect in assessing, but also pays great attention to the safety aspect. (414-1).
Health and Safety Impact

Assessment of Various
Products
In every process of goods distribution, we take samples at the point of production to check the quality of the gas we distribute.
We ensure the quality of our products, as a major component of customer health and safety. In addition, we verify that the
point of production and the point before entering the transmission network does not contain impurity components that exceed
the standard. Thus the safety of production goods distribution is well maintained. PT Indo Kordsa, Tbk also checks the safety
aspect, this inspection is carried out for all (100%) products. Periodically, customers get the recording results attached to the
bill for distribution of goods. Careful checks aim to maintain product quality for our customers. The results of the inspection are
useful as clear and accountable information for customers. (416-1).
For customers who buy products, we include MSDS as well as the use of safe products and materials in accordance with SHE-
IKG-21 Chemical Safety, SHE-IKG-21 Chemical Safety & SHE-IKG-15 Contractor Safety and carry out disposal of production
waste based on SHE-IKG -22 Waste Management & AMDAL / Environmental Permit Documents. (417-1)
59
Standard GRI Index (102-55)
60
61
Fitness Index POJK No.51
/POJK.03/2017
62
SDG’s Links in the
GRI Standards
63
64
Feedback
Sheet
PT Indo Kordsa, Tbk’s 2020 Sustainability Report provides an overview of financial and sustainability performance. We expect
critics and suggestions from stakeholders regarding this Sustainability Report by sending this form via email or post.
Group of Stakeholders
Shareholders Public
Employees and Employee Organizations Mass media
Partner Miscellaneous, please specify . . .
Government, Regulator
Please select the answer that best fits the statement below.
1. This report is useful for you.
2. This report describes the performance of LJK in sustainable development.
Please provide your suggestions / recommendation/ comments on this report:

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Thank you for your participation. Please send this feedback sheet back to:
PT Indo Kordsa, Tbk

Citeureup, Bogor 16810
Indonesia
Tlp.: (62-21) 8752115
Email: yoga.mardiansyah@kordsa.com (Yoga Mardiansyah - Regional APAC SHE & Sustainability)
Fax: (62-21) 879 12252 / (62-21) 875 3934
www.indokordsa.com
65
Halaman ini sengaja dikosongkan
66
PT Indo Kordsa, Tbk
Citeureup, Bogor 16810
Indonesia
Tlp.: (62-21) 8752115
Email: corporate.secretary.id@kordsa.com
Fax: (62-21) 879 12252 / (62-21) 875 3934
www.indokordsa.com

20210430101537SR 2020 PT Indo Kordsa TBK (English)

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Table of Content

Performance Highlights 2020 04

Awards and Certifications 06

Message from Director 08

Responsibility for Sustainability Report 09

About Sustainability Report 10

Standard GRl Index 60

Index POJK No.51/POJK.03/2017 62

People Planet Profit

April 23, 2020

May 15, 2020

Total water withdrawal: (m3) Waste Management: CO2 GHG Emissions

Total volume of water

2020 38.430 Transported

• Golden Taxpayer from the Directorate General of Taxation.

Management System ISO 9001: 2015 by Lloyd’s Register Indonesia.

September 17 2020 and is valid for three years.

May 18, 2023.

in collaboration with Standard Chartered Bank.

• Kordsa’s All Stars - Cost Improvement Category Award.

• All Stars Award - Best Total Productive Maintenance from Kordsa.

• All Stars Award - Best Kordsa Improvement Team from Kordsa.

Development, GTM-P.288 development of New Generation Low DSI Polyester Fabrics.

• All Stars Award - Best Total Productive Maintenance from Kordsa.

• Best Supplier on Implementing Quality Assurance System.

2019, from the Government of West Java Province.

Company Annual Taxes.

As a ‘Reinforcer’, Indo Kordsa

From a broad perspective, from

We believe that Indo Kordsa’s business also provides economic benefits to

Committed to the vision of “Inspired to strengthen life”, we will continue to

2020 Indo Kordsa Sustainability Report

The publication of this report is part of

PT Indo Kordsa, Tbk strives to convey all

Identification: Validation: Overview:

Materiality Survey Result (102-46)

Change in Material Topics (102-49)

PT. INDO KORDSA, Tbk

PT Indo Kordsa, Tbk in Brief

PT. Indo Kordsa, Tbk

Legal Entity Status

• AmCham Indonesia American

Business Advantage Growth Innovation

Potential Motivation Utilization

2018 1.196 people

2019 1.149 people

Number of 2020 1.121 people

2019Tire Cord Fabric 49,684 kilo tons / year

Tire Cord Fabric 41,309 kilo tons / year

Total number of employees based on employment contracts (permanent

In running our business, we collaborate with

We are committed to involving local suppliers,

1. Manage the Company in accordance with the direction of the shareholders;

Code of Conduct (102-16)

The Company socializes the Code of Conduct, including:

1. Socialization through the Company’s internal website.

PT Indo kordsa Polyester (a subsidiary with the same address as the

PT Indo Kordsa conducts anti-corruption training “KEEP - Business

Material (301-1, 301-2, 301-3)

Palette42%, 47%, 19%

The Company also encourages all Company personnel to participate in

Total volume 201838.607