CSR
EMPOWERING SOCIETY AND COMMUNITIES
Employees are key to the success of our business growth. We are committed to fostering an inclusive work culture that enables employees to develop, both personally and professionally. At the same time, creating value for the surrounding community contributes to strengthening the Company's reputation and positive image, which in turn increases the trust and confidence of stakeholders. Our focus in this Pillar is employee diversity and development, human rights and labor practices, and community development.

Employee diversity and development:
Diversity and Equal Opportunities
We treat all employees equally regardless of background, from recruitment of new employees, remuneration, training, to career opportunities. With our policies, programs, and procedures, we strive to maintain a culture that promotes respect, equality, and dignity throughout the Company and work locations. Across all stores, Distribution Centers, and Support Centers, we expect Employees to demonstrate a commitment to Diversity and Inclusion in their interactions with customers and fellow employees.
As Matahari has always been firm in its commitment to Diversity and Inclusion, we have made significant progress in enhancing our efforts in recent years. In 2023, we expanded the "Differently-abled Friends Program" by providing employment opportunities for persons with disabilities (differently-abled) in our operations. Some of our efforts to support differently-abled employees include providing uniforms with special features to help them communicate with colleagues and customers, and assigning a buddy to accompany each Differently-abled Friend. In 2023, 12 new employees joined the program.

Career and Capacity Development
We recognize that personnel development is a prerequisite for business success and efficiency. We aspire to cultivate our employees' potential by continuously creating learning opportunities and experiences to reach their maximum potential. To this end, we aim to develop a learning culture and embrace diverse opinions and feedback.
- Training and Development
We have a learning and development system called MILEA (Matahari Integrated Learning) which can be accessed by employees as a means of self-learning. This platform is developed based on online learning with materials designed and compiled by the Company's internal subject matter experts.
In addition, we continuously explore ways to provide career development, training, and experiences for team members according to their needs. Our Training & Development Department manages the plans and implementation process, and assessment of training results.
- Competency Development
To enhance employee capacity and capability, we provide various competency development programs and skills training systems, including general training and competency development for all levels of our employees. Staff competency development includes basic cashier and sales staff training, as well as self-motivation. For supervisors, we provide Problem Solving Decision Making (PSDM) training, HR Supervisor Development, Train the Trainers, and knowledge and skills enrichment for new supervisors. Furthermore, manager competency development programs cover topics such as understanding individual personalities, creative thinking, business workshops, customer experience, and media training.
- Career Development Program
A structured and organized approach designed to help employees enhance their skills, knowledge, and abilities to achieve career goals and aspirations, as well as prepare potential talents as future leaders of the Company. Our career development program consists of:
Assessment: Identifying and evaluating individuals' current skills, strengths, and weaknesses to understand their development needs, and to align the required competencies for specific positions. This includes Personality Assessment, Cognitive Ability, and Panel Presentation.
Development: Providing access to career development programs, mentoring & coaching, on-the-job training, performance feedback, evaluation, and job placement.
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Individual Development Program
We have designed and implemented personalized and structured programs outlining an individual's professional development goals, to facilitate individual growth and advancement in the context of their current roles or in preparation for future responsibilities. Our individual development programs include assigning our selected employees to attend training sessions provided by third parties such as Corporate Governance Officer workshops, HR Manager Competency training, Gearing Up Self and Team training, Leading at The Speed of Trust training, Indonesia Corporate Culture Day event, and so on.
Human Rights and Labor Practices
Everyone has the right to decent and meaningful work. Likewise, fair compensation and benefits are every individual's right, earned in a safe work environment, free from discrimination and human rights violations, and free to organize. Matahari upholds universally applicable Human Rights and implements them in every aspect of our operations, including in employee management and stakeholder engagement.
As Matahari is always relentlessly committed to respecting human rights and complying with applicable regulations on labor practices, significant progress has been made in advancing efforts in recent years. Our efforts:
- Provide a complaint channel where employees can report all forms of discrimination, harassment, and any form of unpleasant physical, verbal, and mental treatment;
- Committed to objectively resolving every complaint and taking a firm stance by imposing sanctions ranging from written warnings to termination of employment in accordance with Company Regulations;
- Require all employees to sign a commitment to support the creation of a safe, comfortable, and mutually respectful work environment.
- Provide employment opportunities for persons with disabilities in a safe and friendly environment and to avoid all forms of discrimination; and
- Initiate the process of formulating Human Rights policies as the basis for diversity & inclusion (D&I) practices within the Company.
We also strictly monitor to ensure that there is no discrimination, child labor, or forced labor across all regions and by our business partners. The absence of child labor and forced labor has been included as one of the criteria in our supplier selection, to ensure there are no significant risks related to child labor and forced labor with our business partners.
We also have three pillars for industrial relations for employees, namely Ikatan Keluarga Matahari (IKM), Lembaga Kerjasama Bipartit (LKS), and Koperasi Matahari.
Community Development
As Matahari's business inherently minimizes negative impacts on the livelihoods of surrounding communities, our main agenda remains to create shared value. Our primary focus is to support the development of children from less privileged economic backgrounds. We strive to realize this ambition by also inviting our customers to participate in providing social, environmental, and educational assistance to children with the help of our partners.
Matahari believes that education is essential for improving the quality of life of communities and eradicating poverty. We are committed to creating an ecosystem where Indonesian children can grow up healthy and have confidence in their future. In line with this ambition, Matahari contributes to providing literacy and education improvement programs for children in Indonesia, including the renovation of school libraries in various regions in collaboration with our partners, children's clothing and footwear donation programs, garage sale programs for donations, and other donations or programs in collaboration with customers and institutions.

Our community development programs are coordinated by a dedicated team at the Support Center, but the implementation of related programs is carried out in various regions. With the help of our partners, we have identified community development programs by assessing the needs of communities/beneficiaries across regions. We also utilize existing communication channels such as Suara Matahari, social media, and email to collect complaints or requests from local communities.
To ensure that our community development programs have a positive impact on communities, we regularly monitor the amount of funds provided, the number of beneficiaries' locations, and the types of assistance provided.
Other Social Programs
- Employee Health and Safety We emphasize the importance of creating a safe and healthy working environment for employees, managed by a special task force for Occupational Health and Safety (OHS). The OHS task force is responsible for ensuring the implementation of all OHS procedures, including through socialization and training for all employees. Employee welfare is prioritized through enrollment in health facilities, including Social Security for Workers, life insurance, and additional coverage for certain levels. Fire risk assessments are conducted in all premises, to evaluate the readiness of fire safety equipment. Safety training initiatives, held quarterly in 2023, aim to educate employees on potential hazards, emergency procedures, and guidelines for maintaining a safe working environment, in line with our commitment to employee well-being and safety.
- Supporting Local Workers and Suppliers
We actively contribute to community development by creating job opportunities for local communities, promoting local suppliers, and supporting the local economy. With stores spread across various cities in Indonesia, our presence positively impacts local economic growth, evidenced by the absorption of local workers and suppliers across all our stores.
In opening new stores, Matahari creates approximately 50 to 150 job opportunities and collaborates with local suppliers, investing profits to support business growth and indirectly support local economic development. To further strengthen our impact, we also collaborate with Micro, Small, and Medium Enterprises (MSMEs) in 5 selected Matahari stores to promote and offer their products to our customers.