1.  Country Report Global Supply Chain Challenges in the retail sector  Country Report Global Supply Chain Challenges in the retail sector By Sri Maryati Secretary of Women Committee Aspek Indonesia Chairman of Women Committee Hero Union Asia and the Pacific Regional Workers ’ School on Global Supply Chains and Trade Union Strategies ” 28 March – 7 April 2016, Singapore

2. Retail Sales Real sector Growth :::: US$140 billion 15% Modern Retail Share Main areas market :::: ±40% Hypermarkets, Supermarkets,DepartmentStores, Mini Markets, Speciality Stores Indonesian Economic Growth GDP Unemployment Inflation :US$1.3 trillion 5.8% growth 5.9% 5-year compound annualgrowth US$ 5,214 percapita :::: 6% 6.4% Population255 million people Area Land Water : : 1,904,569 km2 735,358 sq mi 4,85 :

3. Union Challenges in Retail & Commerce sector challenges in recruiting members in the retail sector: 1. The Company does not comply with the labor Law 2. The union considered a trouble maker 3. Lack of Freedom of association 4. Multinational companies have international rules 5. Workers are afraid of losing their jobs because joint union 6. The economic conditions of workers makes them think better working of the association 7. company regulations created for workers

4. ASPEK Indonesia is a National federation of trade unions in the service sector in Indonesia. Total registered members as many as 74.083 workers from 86 affiliates. Around 35% of members are female (around 25.900 workers). 1.Commerce & Retail 2.ICTS 3.Post & Logistics 4.Banking & Finance 5.Media 6.Graphical 7.Property & Maintenance 8.Temporary Agency Workers (Security/Cleaners) 9.Health Care 10.Tourism 11.Migrant 1.Commerce & Retail 2.ICTS 3.Post & Logistics 4.Banking & Finance 5.Media 6.Graphical 7.Property & Maintenance 8.Temporary Agency Workers (Security/Cleaners) 9.Health Care 10.Tourism 11.Migrant Commerce & Retail Sector 1.Hero Supermarket Union 2.Tip Top Union 3.Ramayana Union 4.Lotte Union 5.United Tractor Union 6.Indolog Bakti Utama Union 7.Garuda Karya Mandiri 8.Metro Dept.Store Union 9.etc Commerce & Retail Sector 1.Hero Supermarket Union 2.Tip Top Union 3.Ramayana Union 4.Lotte Union 5.United Tractor Union 6.Indolog Bakti Utama Union 7.Garuda Karya Mandiri 8.Metro Dept.Store Union 9.etc

5. PT.Hero Supermarket TBK or Hero Group is one of a group of Dairy Farm International Holding, a group of Jardine Matheson, Per December 2014, the total number of stores operated by the Hero Group is more than 700 stores with more than 16,000 employees. Details of the stores are 129 Express stores Giant, Giant Extra 55 stores, 34 stores Hero Supermarket, 135 Starmart stores, 346 stores Guardian, 2 Jason and 1 outlet store IKEA, which across in Indonesia, Hero registered as a member of Aprindo (Indonesia Retail Association)

6.  Hero Union /Hero Supermarket Union Established in Jakarta on first September 1999 by employees PT.Hero Supermarket Tbk. is an organization of workers formed voluntary, democratic, free and independent without any interference by other parties in order to fight for the rights and interests of workers and their families. Total member of Hero Union more than 13.000 spread across in Indonesia and still growth

7. Hero Union strike at Head Office more than 5000 member support, Point of demand on the strike : The Company effort to improve the structur of wage scale Provide opportunity of Developing local talent in the company

8. SOCIAL PARTNERSHIP IN HERO UNION 1.Every 3 months dialogue beetwen Management and Union and communicate company result 2.Labor & Managemen committe, Bipartit Meeting as a forum for communication between Union & Managemen to created a harmonious conditio 3.Salary Increase Negotiation carried out every years in march 4.Improvement of quality of PKB conducted every two years 5.Union and Managemen work together in several program such as : a. Reduce the shrinkage potential in the company b. CSR Program 6. Employee cooperative to improve economy of the employees managed by Union

9. EMPLOYEE & UNION INVOLVEMENT The involvement of HERO Group Employees as well as external UNION in several CSR Programs internal and SME/Farmers’ Empowerment Community Health “Zumba Carnival” Hero Group held charity event to help children with cancer and donate Rp 474.900.000 to YPKAI One Store One School “Adopt a School” Program Program KASIH Improve maternity health and child development HERO Green Actions Way towards to Environmenta l Friendly We support local SME who has potential product and encourage them as regular suppliers of fresh products in our stores Coaching is done include health services, supplementary feeding (software), increased competencies POSYANDU cadres (brain ware), provision of facilities (hardware ) A social environmenta l act to increase people’s awareness by restoring the environment for a healthy place to live and organising recycle corner workshop Improve the school welfare and its student in the vicinity of our stores

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