Supply & Contractor Management

Supply Chain [2-6][3-3]

Suppliers are one of our stakeholders who play a direct role in the Company's business processes. To carry out effective and efficient business processes, the Company is committed to maintaining good relationships with other suppliers, vendors, and distributors. PT TIMAH Tbk maintains fair business competition in accordance with applicable laws and regulations, by upholding the principles of effectiveness, efficiency, competitiveness, transparency, accountability, and fairness. The Company’s goods and services procurement mechanism refers to the Regulation of the Minister of State-Owned Enterprises of the Republic of Indonesia No. Per- 08 MBU/12/2019 Concerning General Guidelines for the Procurement of Goods and Services in State-Owned Enterprises and Company Regulation No. 0002/Tbk/PER- 0000/22-S11.1 Concerning Guidelines for Procurement of Goods/Services in PT TIMAH Tbk.

In addition, the Company also continuously develops the level of its technology, information, organization, and human resources. The Company carries out its goods and services procurement system by considering the following matters:

  1. Implemented consistently according to applicable rules.
  2. Periodically review the adequacy of the existing procurement system in order to fulfill the principles of efficient, effective, competitive, transparent, fair, reasonable, and accountable.
  3. Always avoid conflict of interest transactions and affiliate transactions by all employees of the Company in the procurement system of goods and services.
  4. Complying with the requirements of social and environmental aspects, such as obtaining AMDAL PP certificate No. 27 of 2012 concerning Environmental Permits, having a report on water, air, and B3 waste quality tests from an accredited lab in accordance with The Minister of Environment Regulation No.06 of 2009; the B3 Waste management partners must be a licensed third party in accordance with government regulation No. 101 of 2014.

The Company is committed to improving the economy of the surrounding community by cooperating with local suppliers. The local category includes suppliers from Bangka, Belitung, Riau, and Riau Islands regions. If local suppliers cannot meet the Company's needs, the Company will expand the scope of suppliers in the national category, or those originating from Indonesia. In 2022, there were 77 local suppliers, or 27.70% of all suppliers, with a procurement contract value for local suppliers of Rp492.42 billion.