Policy

RISK MANAGEMENT

The Company is committed to implement risk management systematically, structurally, and integratedly in order to evaluates and anticipates potential uncertainty or loss in business activities. The Company has also compiled policies, guidelines and procedures to identify risks, as well as determine risk management strategies which covers dodging risks, risk mitigation, and protection towards several or all risk consequences.

In addition, the Company establishes Risk Management Team to coordinates all departments and employees in implementing risk management system in every work process of each department. The Company is also committed to make risk awareness as a part of the Company’s culture through an effective and optimal risk management in order to create, protect, improve Shareholders value, improve the certainty of development and sustainability of business.

PROFIL AND RISK MITIGATION

The Company has identified the following risks that may affect the Company:

Foreign Exchange Risk

Foreign exchange risk is caused by the fluctuations of normal value or future cash flow from a financial instrument due to changes in foreign exchange rates. The Company’s exposure toward this foreign exchange fluctuation mainly comes from short-term loans and trade payables as which is mostly in US Dollars.

The Company uses foreign currency for a portion of its revenues and costs of raw materials, the prices of which refer to the London Metal Exchange (LME) reference prices. The Company uses derivative financial instruments such as foreign currency swap contracts and commodity swap contracts to anticipate risks that may occur. The Company uses derivative transactions for hedging and not as trading instruments or for speculative purposes.

Price Risk

Price risk is a financial loss caused by the price changes of the Company’s production raw material. One of the causes of the Company facing price risk is a change in prices in the future  to purchase High Concentrate Aluminum and Copper.

Therefore, the Company uses commodity futures contracts (buy-sell) with international financial institutions in connection with the risk of changes in prices of these raw materials. The Company is confident that it has reduced some risks of changes in commodity prices in the future.

Interest Rate Risk

Interest rate risk is a normal value or future value from financial instrument that fluctuates due to the changes of the market interest rates. At this time the Company has exposure mainly on bank loans and short-term and long-term financing lease, which affected the loan repayment at maturity.

Credit Risk

Credit risk is a financial loss experienced by the Company when the customer fails to fulfill the liability under the contract, no concentration on the significant credit risk. The Company manages and controls credit risk by determining acceptable risk limits for each customer and monitors related exposure with this limit.

The Company only establishes business relationships with third parties that have reputation and credibility. The Company also has a policy that requires all of its customers to go through credit verification. Total of credit will also be monitored constantly to reduce the impairment loss.

Liquidity Risk

Liquidity risk is a risk where the Company will have a difficulties in disbursing funds to fulfill commitments related to financial instruments. To mitigate this risk, the Company implements a policy to regularly monitor current and future liquidity needs to ensure that the Company has sufficient cash reserves to meet short-term and long-term liquidity needs.

 

 

QUALITY, OCCUPATIONAL SAFETY & HEALTH, ENVIRONMENTAL, ENERGY AND SOCIAL RESPONCIBILITY POLICY

  1. Providing safe and healthy workplace for the prevention of injuries, occupational diseases and the prevention of security disturbances.
     
  2. Eliminating hazards and reduce of Occupational Safety & Health risks, protecting the environmental including prevent of environmental pollution due to activites and product.
     
  3. Manufacturing products and services to enhance customer satisfaction.
     
  4. Saving of natural resources and provide product and service that savely energy.
     
  5. Conduct business activities according to good corporate governance and social responsibility.
     
  6. Comply with legal and others requirements.
     
  7. Providing information and resources needed.
     
  8. Providing mechanisms for consultation and participation of workers
     
  9. Supporting activity of design to improve quality product, OHS, enviroment and saving of energy.
     
  10. Conducting continiual improvement of quality , energy efficiency, process, Occupational Safety & Health and Environmental performance and the effectiveness of Quality, Occupational Safety & Health and Environmental Management System.

 

 

(ANTI BRIBERY POLICY)

  1. Implementing the values of integrity, quided by the code of ethics principles 4 NO’s that is :
    1. No Bribery
    2. No kickback
    3. No Gift
    4. No Luxurious Hospitality
       
  2. Implement the principle of Zero Tolerance for actions related to violations of Laws and Regulations related to Criminal Acts of Corruption Eradication and the 4 NO’s Principle.
     
  3. Not allowing the company’s Personnel and Company Stakeholders to violate the Company’s Code of Ethics and the 4 NO’s Principles related to their duties at PT Voksel Electric Tbk.
     
  4. Regulating the conflict of interest of each Company’s Personnel and any conflict of interest that has potentially risky must be declared.
     
  5. Provide regular socialization and training regarding Corruption Prevention, 4 NO’s Principles and Business Integrity development on a regular basis to all Company Personnel.
     
  6. Establish an independent Anti Bribery Compliance Function.
     
  7. Supervise and provide a framework for the implementation of this commitment and any violation of the Code of Ethics and 4 NO’s Principles will be subject to sanctions in accordance with applicable regulations.
     
  8. Always strive to improve and improve every business process to be in line with the principles of integrity.