The Policy on Selection and Improvement of Supplier and Vendor

 The suppliers and vendors who participated in the procurement activities at PT Dharma Satya Nusantara Tbk ("the Company") have to fulfill the following requirements:

  1. Having expertise, ability and experience in accordance to the field of business.
  2. Having human resources, production equipment, and other resources according to the category of business field in supporting operational activities.
  3. Preferably incorporated.
  4. Subject to applicable regulations and requirements related to the procurement of goods / services.
  5. Not subjected to legal sanctions or involved in a legal case that can affect the Company.

Legal entities or individuals that are interested in becoming suppliers and vendors must register their companies or themselves with the applicable provisions of the Company accordingly by filling the forms provided.

 The Company has the right to terminate supplier status from the registry at any time if:

  1. The supplier resigns by sending a resignation letter from the registry to the Company's Logistics Division.
  2. Violate the provisions as stipulated in the Company's procurement environment.
  3. Performance appraisal below the Company's standards repeatedly or resulting in loss and disruption of the Company's operational activities.
  4. There is a change or adjustment in the type of business managed by the supplier.
  5. Suppliers only become intermediaries that do not provide added value to the Company.
The Company may apply sanctions for violations committed by Suppliers through the following reasons:
  1. Supply goods or carry out work that doesn’t follow specifications.
  2. Refuse to carry out work after being appointed as the winner.
  3. Transferring the main work to other parties without the Company’s knowledge.
  4. Unable to complete work and / or fulfill payments that are imposed on the time limit.

The violations committed by the Supplier may include the following:
  • Unable to fulfill the demand for goods / services to the agreed contract terms.
  • Engaging in illegal activities stated by the authorities.
  • Misuse of documents for purposes not related to the procurement process and / or not related to the work process, without the Company's permission.
  • Conduct or publish information that is incorrect and cannot be proven that could harm the Company.
  • Disregard obligations to the country in terms of tax payments.

Supplier Capacity Enhancement

To encourage an increase in the ability of Suppliers, the Company applies a Supplier Performance Assessment System that is sent periodically to ensure quality and continuous improvement.

The Company will evaluate the performance of suppliers based on an established criteria, that includes the aspects of quality, service, and delivery in the supply of goods / services provided. The results of the supplier performance evaluation will serve as a basis on determining reward and penalty, and a review of the existence of these suppliers in the Company's supplier registry.

The Company periodically evaluates supplier performance based on an established criteria, which includes aspects of quality, innovation, fulfillment of obligations under the cooperation agreement.