Supplier Code of Conduct

Rooted in the Company’s vision, mission and values, Sido Muncul is committed to the highest standards of social obligations, ethics and business integrity. Based on our commitment to product integrity and inclusive business, we expect that every supplier can have the same spirit and commitment to make this true.

Sido Muncul’s Code of Conduct outlines the expectation and commitment for suppliers to implement in their day-to-day business operations. This is essential as every collaborative activity undertaken by suppliers can also have an impact on Sido Muncul.

This Supplier Code of Conduct mandates every supplier who will collaborate and is collaborating with Sido Muncul to accept, comply and have an internal system to ensure their business practices comply with this code. Sido Muncul will evaluate all Suppliers on their compliance with this code. Suppliers and Sido Muncul must be open and transparent with each other, so that evaluation can be maximized, strong and sustainable cooperation and trust can be built.

Conducting Ethical and Business Integrity

Sido Muncul operates in several countries that have different regulations. However, each supplier is expected to comply with the following provisions:

1. Compliance with regulations
   Our suppliers know, understand and comply with the rules or regulations applicable to their areas of business. All legal requirements are expected to be met as minimum requirements and strive to implement better than required in accordance with the spirit of Value point O in our SIDO Values, namely Outperforming.
2. GCG Principles
   Carry out governance and business operations in accordance with GCG principles, namely transparency, accountability, responsibility, independence and fairness.
3. Gratification, Anti-Bribery and Anti-Corruption
   Suppliers comply with applicable rules/regulations related to anti-bribery, anti-corruption and gratification in accordance with Sido Muncul’s commitment stated in the Company’s Code of Conduct. Actions that could trigger a conflict of interest must be avoided. Sido Muncul does not accept any form of gift outside the agreed procurement agreement for goods/services. In a case where the supplier finds that Sido Muncul workers are receiving compensation outside of what has been promised to Sido Muncul, they are expected to report it immediately. Violation of this by the supplier may trigger a re-examination of the cooperation and may result in termination of the cooperation.
4. Privacy and Information Security
   Suppliers are expected to maintain the privacy and personal information of every party they collaborate with, including other suppliers, customers and workers. Suppliers are encourage to make efforts to safeguard such information so that appropriate protection is provided.
5. Information Disclosure
   Suppliers is honestly and accurately disclose information in accordance with their obligations and applicable industry best practices.

Labour and Human Rights

Sido Muncul Suppliers must implement the highest standards regarding Labour and human rights. Sido Muncul is a Signatory Member of UN Global Compact and is committed to the 10 UNGC Principles in the aspects of Human Rights, Labour, Environment and Anti-Corruption. We also have a commitment to comply with Indonesian and International regulations, including the international Labour Organization (ILO). Therefore, every Sido Muncul Supplier is also expected to implement it as follows:

1. Commit together with Sido Muncul in terms of diversity, inclusion, fair treatment, non-discrimination and forced labour. Upholding the enforcement of human rights, non-persecution policies, inhumane acts, in order to create and inclusive and non-discriminatory work environment where all workers feel respected, appreciated and embraced.
2. Comply with applicable regulations regarding working hours and overtime. Suppliers are also advised not to employ children under 18 years of age or in accordance with regulations at the Suppliers place of operation.
3. Provide facility for their workers to express complaints and negotiate without pressure or threats, including unionization.

Health and Safety

Sido Muncul suppliers are also expected to implement an occupational health and safety management system in all aspects of the business and comply with applicable regulation on Work Health and Safety in the respective operating area. This management system is needed so that exposure to hazards can be identified, analyzed, mitigated and controlled.

Suppliers must provide workers with safety equipment and workers must be informed about their exposure to hazards.

Environment

Sido Muncul’s commitment to the environment includes reducing greenhouse gas emissions, reducing waste, maintaining biodiversity. It is expected that this commitment can also be implemented by all Sido Muncul suppliers, including by:

1. Obtain and manage all environmental permits required by regulators and carry out reporting obligations where required.
2. Encourage efficient and environmentally friendly use of resources and reduce or eliminate waste, by implementing steps in accordance with best practices.
3. Carry out identification, management and control in accordance with applicable regulations for Hazardous materials and ensure responsible management and handling, and does not pollute the environment.

Evaluation and Continuity

This code is prepared based on Sido Muncul business context and applicable regulations. The code will be reviewed periodically to maintain its relevance.

This code is made in Bahasa Indonesia and English, and if there are differences in interpretation between the two, then Bahasa Indonesia shall be the one that applies.

We encourage open communication with all our suppliers, and if there are reports of suspected violations, you can contact us at compliance.officer@sidomuncul.co.id. All information provided will be kept confidential.