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Overseas CSR Initiatives

DNP began as a publication printer, but developed and leveraged its unique printing technologies to expand into a broad range of business sectors. One of the company’s first explorations with its “expansion printing” strategy was in packaging operations. Operations began in earnest after World War II. Since then, we have strived to perfect packaging technology that protects the contents, and we are proud to supply high-quality products the world over. Indeed, throughout the history of our packaging operations, we have constantly sought to bring safer, more plentiful products to society. One prominent example of our desire to spread Japanese packaging culture and enrich lifestyles around the world is the efforts of DNP Indonesia.

Taking Japan’s superlative packaging culture to the world

Four decades ago, Indonesia was in need of new forms of packaging suited to the nation’s changing society and lifestyles. The trigger for DNP’s expansion into the Indonesian market came when a government-backed publication printer asked the company to participate in a joint venture. We accepted the request and, in 1972, established DNP Indonesia in Jakarta, with the ambition that we could make a genuine contribution to the rest of the world with our wealth of packaging technology.

These days, DNP provides high-quality, cost-competitive products made using our advanced packaging technologies and expertise in coun-tries around the globe. In particular, DNP has built up a majority share in the Indonesian market for soft packaging with high added value such as strong barrier properties, and DNP Indonesia is now one of the top packaging manufacturers in Southeast Asia.

DNP Indonesia’s major clients are global companies based in Europe. The company acts as their local partner, and they rely on DNP Indonesia to supply them with world-class products, not only in terms of quality, function,

and cost, but also in terms of environmental credentials and ability to satisfy local needs. DNP Indonesia takes those requirements seriously, and has constantly strived to im-prove its technology so as to gain the recognition of many world-renowned companies as a preferred supplier.

Forty years after the company’s inception, we still see DNP Indonesia as much more than an overseas expansion; our aspiration to be a global force for good by taking Japan’s super-lative packaging culture to the world remains strong, and we believe that DNP Indonesia’s many years of growth have come as a result of that lofty vision, coupled with our respect for the local people and communities. In 2013, we hope to capitalize on DNP Indonesia’s suc-cesses, expand further throughout the region—including a new factory in Vietnam—and spread the word about Japan’s packaging culture further around the world.

As society has changed over the years, the requirements for packaging have changed as well. It is no longer enough that it protects the contents, facilitates handling, and adds an attractive appearance; it should now have added values such as universal design and consideration for the environment.

At DNP Indonesia, all production processes have been internalized, which allows the company to supply quality products with high added value, thus earning the trust of clients. DNP Indonesia has long held ISO certification for quality, food, and environmental manage-ment, based on our establishment of manage-ment systems for each of those categories.

Thus, the company can offer a stable supply of products that meet stringent quality, performance, and cost criteria.

DNP Indonesia is also working aggressively to develop sustainable packaging as a means of helping to solve social problems. Products are designed and made in accordance with the DNP Environmentally Conscious Products Development Guidelines, and DNP Indonesia endeavors to parlay that into the development of items such as vapor-deposited IB Film (innovative barrier film), which does not gen-erate toxic gases when incinerated. Indeed, everyone at DNP Indonesia looks forward to offering clients a growing variety of innovative,

sustainable products.Consideration of society’s needs is also an

important part of the production process. At DNP Indonesia, considerable effort goes into CSR-conscious purchasing practices, and the company adopted the DNP Group CSR Procurement Criteria in 2011. Seminars have been held for major suppliers to explain the significance of the company’s CSR activities.

In particular, paper is an area that requires care. As such, DNP Indonesia makes a point of procuring wood feedstock from certified forests in consideration of the situation in Indonesia, which faces multiple issues re-garding forest conservation, including defor-estation and degradation of forests through large-scale development.

Moreover, as a business that forms part of the supply chain, DNP Indonesia has regis-tered on Sedex, the Supplier Ethical Data Exchange, a database pertaining to ethical labor practices in the production industry. In this way the company aspires to an ever higher level of CSR-oriented business manage-ment.

DNP Indonesia

DNP Indonesia incorporated

1972Top share of the

Indonesian market for barrier packaging

Approx. 50%

DNP Indonesia’s Karawang Plant

Checking print quality

Certifications from many global companies of DNP Indonesia’s status as a preferred supplier

Soft packaging material goes through a slitter

High aspirations spur long years of growth

A high-quality, ethical production structureAnnual CSR Topics

Exchanging opinions with suppliers

This photograph shows one of Indonesia’s ubiquitous stalls. Behind the stallholder is a wall of hanging sachets containing shampoo, detergent, and many other items. Sachets are a tremendously popular form of packaging in Indonesia, ideally suited to the local living environment and economy. As such, DNP Indonesia develops and supplies a variety of sachets.Because they contain products commonly sold at stalls, sachets are exposed to the outdoor environment for long periods of time. Therefore, they must provide a steadfast barrier against oxygen, steam, and light. Thus, DNP’s state-of-the-art printing technologies are used in everyday products that uphold the day-to-day lives of the local community.

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In September 2012, DNP Indonesia held Family Gathering 2012, a bonding event for employees and their families, aimed at nurturing unity among the company, the labor union, employees, and their families.

This was the third Family Gathering, doubling as a celebration of the 40th anniversary of DNP Indonesia’s founding, and serving as an ideal forum for the company to show its appreciation for the workforce. Large-scale events like these

DNP Indonesia is devoted to achieving mutual prosperity with the local community. The

company has a number of ongoing initiatives to help improve living environments and

promote healthy independence in neighboring areas.

Planting trees to prevent floodingStarting with the disastrous flooding in 2010, the Citarum River that flows through a residential area near DNP Indonesia floods regularly during heavy rain.

DNP Indonesia responded by launching a program of tree planting in December 2012, which had the double benefit of preventing soil erosion and beautifying the area. So far, the company has planted 500 bamboo plants, 167 Sengon laut trees (a broad-leaf tree of the bean family), and five mango trees along a stretch of around 500 meters along the river bank.

Building wells to secure domestic water suppliesIn Indonesia, the water supply infrastructure is under-developed and there is a shortage of water for drinking and household use.

DNP Indonesia has dug wells in four locations in villages around its Karawang Plant, and holds seminars for local housewives on health and hygiene.

Support for local childrenDNP Indonesia, in its capacity as a member of the Karawang International Industrial City tenants’ committee, presented local elementary school children with notebooks as part of the committee’s community support program. The notebooks were made by DNP, and 7,000 children received four notebooks each.

The company also has an ongoing scholarship program for high school students from low-income families with high motivation to study. Under the program, DNP Indonesia has continued to pay all tuition fees for three full high school years for such students.

have helped foster good relations be-tween company management and labor, and have led to increased motivation among employees.

Family Gathering 2012 was held at the Atlantis Water Adventure amusement park, one of the biggest resort facilities in Southeast Asia and a major attraction for the Indonesian people. The event was a huge success: of the 7,733 people (em-ployees and their families) eligible to attend, 7,668 came—that’s 99.2%!

Employee (and family member) attendance

rate at Family Gathering 2012

99.2%

Percentage of the DNP Indonesia workforce

hired locally

99.9%

Since DNP Indonesia’s inception, “treat employees with care” has been one of the company’s main policies, and it has always strived to maintain a rewarding workplace.Its plants are constructed to the standards of DNP in Japan to ensure employee safety, and there is a generous range of welfare facilities as well. Almost all of DNP Indonesia’s 2,400 employees are local hires, and they are given thorough training to encourage skill development. The company has also pursued several initiatives to help raise the living standards of the local community.Put simply, DNP Indonesia earns the trust and affinity of the local people by treating them with care.

Fostering team spirit among employees

Community Engagement

The Family Gathering 2012 venue was packed with employees and their familiesDNP Indonesia donated wells to the villagers of Wadas, and followed this up with educa-tion on healthy lifestyles. The seminars were aimed at communicating the need for clean water when cooking, showering, washing dishes, and washing clothes, and teaching attendees the basics about the illnesses that often occur when using river water directly for household purposes.

We also highlighted how throwing trash into the river can cause sickness and even flooding, and encouraged the correct dis-posal of trash and the use of proper toilet facilities.

I hope that the water supply facilities and education provided by DNP Indonesia help raise awareness of the need for hygiene in everyday life.

We were very happy to have a well dug in our neighborhood. Not only that, DNP Indonesia staff gave us classes on hygiene. We housewives learned a lot about the benefits of well water for household use, as well as some basic knowledge about dis-eases and sicknesses.

I hope that DNP Indonesia will continue to support living standards in Wadas so that local people can live healthier lives.

Participants entered the lucky draw for a chance to win prizes

Local employee’s view

Local resident’s view

Earning trust with people-oriented management

Siti RopiyahRepresentative of the Wadasneighborhood community associationMM Ari RetnoDepartment Manager,

Human Resources Development, DNP Indonesia

DNP Indonesia

Local women attend a hygiene seminar

Local children show off their notebooks

A DNP Indonesia executive plants a mango tree