ARWANA IN BRIEF
PT Arwana Citramulia Tbk (Arwana) is a public company listed on the main board of Indonesian Stock Exchange (IDX) and traded under "ARNA" stock code. The Company is dedicated to producing low cost ceramic tiles to serve medium-low segment market nationwide. The products are sold under "Arwana Ceramic Tiles" brand, a brand name that signifying quality product with competitive pricing. In 2011 a brand new ceramic tiles with better quality, namely "UNO," was introduced to capture the medium-high market segment.
Since its initial operation in 1995, Arwana has remained faithful in its core business based on its competence to produce quality products with creative designs. A wide variety of beautiful product-mix is offered including Embossed, Marble, Plain Color, Granity, Strata, Rustic, Fancy Wood and Fancy Decorative. The most common sizes are 20 x 20 cm and 30 x 30 cm. However, the current trend has been growing to 40 x 40 cm. Subway tiles of 20 x 25 cm and 25 x 40 cm for wall tiles has also been developed albeit from a small basis.
Headquartered in Jakarta, Arwana sells the products through its sole distributor, PT Primagraha Keramindo (PGK), the Company's subsidiary, and more than 40 sub-distributors spread in nearly every cities and major towns in Indonesia together with thousands retail outlets. The widely spread marketing network provides consumers with strong local presence, combined with good after sales service.
Our factory is always working on improving our manufacturing and R&D. Arwana has pursued several certifications published by the national institutions as well as regional and international organizations for standardization such as Green Proper and SNI (Indonesia), SIRIM (regional) and ISO (international).
Arwana has three factories located in three places far from each other, namely Plant I and Plant II, located in Tangerang and Serang respectively, mostly serve the market in the western part of Indonesia, and Plant III which is located in Surabaya, mostly serve the eastern part of Indonesia's markets. The most recent expansion was the Plant IV-A in Ogan Ilir, Sumatra which commenced production in September 2013. Arwana plans to increase total annual production capacity from 49,370,000 m² to 63,870,000 m² by 2016.
Amidst the ongoing tension in the real sector, Arwana has been growing rapidly, and would continue to do so in the future. The company's significant growth over the years was attributed in part to the Company's innovative and flexibility in acting on technology trends, which involve both the installation of new scientific and technical methods that benefit
the earth, also referred to as "green technology". Arwana is an environmentally friendly company where the company has won Green Industry Award in 2011, 2012, and 2013. Our company is the first company in Indonesia which obtains ISO 14001 for Environmental Management Systems.
To be the best company in the ceramic industry, full of creativity and innovation, and able to contribute to the development of the country and the society.
Our vision demands a three dimensional mission encompassing:
As a reference for GCG implementation, the company determines to have a comprehensive GCG manuals. A number of GCG manuals are re-evaluated to bring current parameter into line, and they are published comprehensively. The GCG manuals govern the company’s business decisions and actions as well as the behavior of individual employees.
The objective of the GCG manuals is to attain higher compliance level, formation of management control structure, and enhanced GCG awareness that will result in improvement of performance. The principles of the guidelines have been socialized to the employees who are expected to implement them in their daily jobs and to be source of corporate culture value.
The GCG Manuals consist of :
I. GCG General Guideline
This handbook contains various policies regarding Good Corporate Governance practices. GCG General Guideline is the crystallization of all rules that guide the implementation of GCG best practices, cultural values, vision and mission. GCG General Guideline contains corporate governance principles which are further elaborated in various policies and technical implementation rules.
II. Board Manual
Board Manual is a set of formal structures and processes that govern key board attributes and activities such as size, composition, roles and responsibilities. At its core, it is a roadmap for directors, which contains key information on the organization, its strategy, and its governance structures/processes. In addition to the creation of these formal structures and processes, the boards can greatly benefit from formally documenting, reviewing and updating them. We believe the board manual is the ideal venue for this information.
III. Commitee Charters
Often, the most ignored governing documents for any organization with a governing board are the committee charters. Therefore, during the year, we feel necessary to take a step back, take a look and assess our committee structure, committee charters and performance to determine whether the committees are prepared and equipped with the requisite power and authority for the challenge of the new year. The company wants to ensure that the committee charters are in writing, periodically reviewed and discussed by the Commissioners.
IV. Management Control System
Arwana’s management control systems are methods that the company use to collect information that will later guide and direct the behavior of corporate officers and managers, particularly in regards to accounting and finance, in which corporate expenses are being compared to expenses from each division as well as individual managers. The goal of our management control system is to set a uniform standard that is easy to identify and easy to follow in order to ensure common results across the company.
V. Collective Labor Agreement
To drive the practical deployment of the business principles, a set of “Collective Labor Agreement” handbook has been published. The handbook includes information on the following topics: performance appraisal procedures, employee compensation and benefits, leave policies, and disciplinary procedures. The handbook is designed to ensure that employees receive fair treatment, and is used to inform employees of rules, regulations, and policies.
Employees can refer to this handbook to answer basic questions throughout their tenure with the company. Additionally, managers in the company can use the handbook to help them make uniform and consistent decisions regarding employees. Often the employee handbook is used as a reference during a company’s orientation sessions.
VI. Code of Conduct
Code of Conduct is a handbook to arrange the code of conducts for relation between internal parties (employees) and external parties like shareholders, investors, customers, suppliers, government, society and the environment. The Code does not cover every issue that may arise, but it sets out basic principles whereby all company’s members must conduct them accordingly. The Code of Conduct directives are adapted as needed to reflect ongoing developments in codes of conduct and business integrity legislation.
The main items of the Code are as follows:
Obeying the laws, rules and regulations, both in letter and in spirit, is the foundation on which these Company’s ethical standards are built
II. Conflict of Interest
Company’s members must realize that their position with the company must be their primary employment. They must avoid any direct or indirect business connection with the company’s customers, suppliers or competitors, except on the company’s behalf.
III. Insider Trading and Use of Corporate Opportunities
The company’s members who have access to confidential information are not permitted to use or share that information for stock trading purposes or for any other purpose except the conduct of the company’s business. No company’s members may use corporate property, information, or position for improper personal gain, and no company’s members may compete with the company directly or indirectly.
IV. Competition and Fair Dealing
The Company seeks to outperform its competition fairly and honestly. To maintain the company’s valuable reputation, compliance with the company’s quality processes, safety requirements, and environmental regulations are essential.
V. Discrimination and Harassment
The company is firmly committed to providing equal opportunity in all aspects of employment and will not tolerate any illegal discrimination or harassment of any kind.
VI. Health and Safety
Each company’s members has responsibility for maintaining a safe and healthy workplace by following health and safety rules and practices and reporting accidents, injuries and unsafe equipment, practices or conditions. The use of illegal drugs or alcohol in the workplace is strictly prohibited.
VII. Use of Proper Accounting Practices
The company requires honest and accurate recording and reporting of information in order to make responsible business decisions. Employees who are in charged with duties to make any disclosures to the IDX and Capital Market Supervisory Agency or to make any other public communications shall make full, fair, accurate, timely, and understandable disclosures in those reports and documents.
VIII. Trade Secrets and ConfidentialityPractices
The company’s members shall not disclose, copy, retain, or use for their own benefit or the benefit of employee’s employment or other affiliations with the company, any secret or confidential information, formulas, designs, drawings, programs, specifications, processes, apparatus, research, or other trade secrets without prior written consent of the company. Nor shall any Company’s members disclose information about the company, its products, financial conditions, or other information except in the normal course of that employment duties.