Toggle Nav


Use of the Local Workforce

Matahari contributes to driving local economic growth by providing decent, fairly compensated work opportunities for local people across Indonesia. We have a policy of hiring locally as far as possible, and the majority of staff at each of our stores are from the local area. The existence of a large format Matahari store has a significant, positive impact on the local economy, particularly in second and third tier cities around the country, from the absorption of local labour, products and services to the payment of local taxes.

Community Empowerment

We are committed to making a positive impact on the communities we serve and to minimizing any negative impacts on the environment and society arising from our operations. We therefore seek to initiate, implement or support programs and initiatives that create value for our stakeholders, who include not just employees, customers and business partners but also the broader communities where we operate.
In addition to the beneficial impact of Matahari stores described above, we also seek to empower communities by investing in a wide range of health, education and livelihood initiatives in partnership with various non-profit organizations, including Yayasan Dompet Dhuafa, LAZISNU, Pendidikan Harapan Papua, UNICEF and the Matahari employees’ association (IKM).

We are also committed to building community resilience in times of urgent need, such as providing financial and in-kind support to communities affected by natural disasters, using a portion of the funds raised from our customers through our in-store charitable giving scheme as well as funds from the Company. In 2019 we contributed to the ongoing rebuilding efforts in Palu, Central Sulawesi, which suffered a devastating earthquake and tsunami in 2018, as well support for the victims of flooding in Tegalluar, West Java.

We seek to ensure that our charitable donations program is fully accountable and transparent by verifying that the funds we donate, whether from the Company or from our customers, are directed to programs and initiatives that deliver maximum impact and sustainable outcomes for the beneficiaries. We therefore conduct thorough due diligence on any prospective implementing partners to ensure that they have a strong track record on supporting and implementing projects that empower communities and people, and that they have a solid reputation for integrity.

Employee-Led Community Outreach

Many of our employees are regularly involved, on a voluntary basis, in community outreach initiatives addressing specific local needs. The Company has lent its support to many of these employee-led projects through the Matahari employee association, IKM, offering funding and organizational support. We believe that such initiatives play a valuable role in strengthening Matahari’s brand equity by creating added value for the communities and reinforcing the deep connection between our stores and the communities they serve.

Prioritizing Local Suppliers

We seek, as far as possible, to make use of domestic products. We believe that this contributes to the improvement of local partners, which, in turn, contributes to building national economic resilience. In addition, prioritizing domestic partners reduces the Company’s exposure to supply chain risks and foreign currency risks while offering advantages in terms of more competitive pricing.

Ensuring Supplier Responsibility

We work with more than 1,000 suppliers throughout the country and we value them as an essential part of our business. However, we seek to work only with partners who share our high standards on responsible, sustainable and ethical business conduct. All our suppliers and contractors are required by law to comply with the labour laws, including regulations on the minimum wage, time off and child labour; environmental laws and regulations; and any other applicable business laws.
While the Company does not yet have a formal Supplier Code, we believe that we have reasonable assurance on their compliance due to the fact that

  1. they are subject to regular external factory inspections by the local authorities;
  2. we make regular visits to the suppliers ourselves; and
  3. we have longstanding working relationships with the majority of our suppliers and are very familiar with their working practices. 

Jika ditemukan bahwa salah satu pemasok atau mitra kami tidak mematuhi kewajiban hukum terkait kesehatan dan keselamatan karyawan, praktik ketenagakerjaan dan mengelola dampak lingkungan, maka hubungan kemitraan dengan Peseroan akan berakhir.

Communication of Anti-Corruption Policy

The Matahari Code of Conduct sets out our strict policies on preventing and eliminating corrupt practices as well as our guidance on dealing with gifts, bribery and conflicts of interest. All of these apply not only to everyone in the Company but also to our third party suppliers, contractors and vendors. Employees, management and suppliers receive regular reminders and refreshment on the Code of Conduct through campaigns, training, gatherings and awareness-raising about our whistleblower mechanism, Suara Matahari.


Social Responsibility for Human Rights

The Company is committed to upholding human rights and, through its compliance with Indonesian labour laws, has guaranteed not to use forced labour, trafficked labour or child labour anywhere in our operations

Social Responsibility for Fair Operations

The Company’s Code of Conduct underlines our commitment to fair and ethical working practices by providing specific guidance on, among other matters, countering corruption, financial and professional misconduct. In addition, employees have the right and are explicitly encouraged to report misconduct or unethical behaviour through a secure confidential whistleblower channel, which protects them against retaliation. More details about the Code of Conduct and the whistleblower mechanism can be found in the Corporate Governance section of Annual Report 2019.