KohDoh Feature 1 : Report

The Indonesia Plant Fire and Our Response

The Indonesia Plant Fire andOur Response
A ﬁre occurred at PT Mandom Indonesia Tbk, our Indonesianconsolidated subsidiary, on July 10, 2015.

Company name● PT Mandom Indonesia Tbk

Established● November 1969

Paid-in capital● 100,533,333,500 Indonesian rupiahs (as of December 31, 2015)

Representative● Muhammad Makmun Arsyad

Business areas● Manufacture and sale of cosmetics and plastic products, import product sales and exporting

We sincerely oﬀer our prayers for the souls of the local staﬀ

No. of employees ● 5,253 (as of December 31, 2015; total including directors and temporary personnel)

members who lost their lives, extend our deepest sympathy

Locationand condolences to the bereaved families, and pray for the● Headquarters and Factory 1 (production plant)• Headquarters and factory moved from Jakarta (Sunter) to Bekasi. Went into operation in June 2015.
• Site area: 147,936m2• Address: Kawasan Industri MM 2100 Jl. Irian Blok PP Bekasi 17520

quick recovery of those who were injured. We tender ourdeepest apologies to the people of Indonesia, those in thevicinity of the factory, and everyone who was aﬀected by theaccident.

100th day memorial service

Below we present a summary of the ﬁndings of the Indonesian National Police Headquarters in Jakarta regarding the cause of theaccident, along with a summary of our ongoing response.
et sitiden

Acc

1. The cause of the accident and our ongoing response
The Forensic Laboratory Centre of the Indonesian National Police Headquarters presented the results of its
investigation in which it stated that the explosion and ﬁre was caused by heat from the Leister model hot-air hand
tool used for ﬁnishing on Line 2 igniting vapor saturated with LP gas that had leaked from the tip of a ﬂexible tube
connected to an aerosol ﬁlling machine. The explosion faced the aerosol ﬁlling machine and caused ﬂames to burst
out. Once the police cordon was lifted, Mandom set up an Accident Investigation and Response Committee
composed of external experts to study how to prevent such an accident from ever happening again. (From News
Release No. 5 of Oct. 29, 2015)

2. Accident Summary(1) Date and time of occurrence
July 10, 2015

Local time: around 9:18 a.m. (11:18 a.m. Japan time)

Aerial photo of new Indonesian head oﬃce building and cosmetics manufacturing plant (Factory 1) (Feb. 2015)● Factory 2 (plastic container molding plant)• Went into operation in March 2001
• Site area: 54,442m2• Address: Kawasan Industri MM 2100 Jl. Jawa Blok J-9 Bekasi 17520(2) Location of occurrence

Aerosol product production area, Indonesia Headquarters Plant
Address: Kawasan Industri MM 2100 Jl. Irian Blok PP Bekasi 17520
Aerosol: A liquid released from a valve by means of a propellant gas and used in hair sprays, antiperspirant
deodorant sprays, etc.

(3) Injuries, Deaths and Damage

28 deaths among Indonesian personnel (4 male, 24 female)(including 23 deaths after the accident up to September due to burn sepsis and other causes)
30 injured among Indonesian personnel
Aerosol production area destroyed

Consideration : Photos of the scene of the accident are not included in this report out of consideration for the victims
and their families. For more details, please refer to the ﬁnal report materials of the Accident
Investigation and Response Committee.

Follow-up News Releases
See AlsoReport

16●Final Report from Accident Investigation and Response Committee on
Fire Accident at Consolidated Subsidiary (May 11, 2016)
http://www.mandom.co.jp/release/2016/src/2016051101.pdf (Japanese only)●Accident Investigation Report on the Fire and Explosion at PT Mandom Indonesia
Tbk HQ Plant's Aerosol Production Area published by the Accident Investigation
and Response Committee
http://www.mandom.co.jp/release/2016/src/2016051102.pdf (Japanese only)

The Mandom Group takes this accident very seriously. We set up an Accident Response Headquarters immediately after theaccident and continue to take measures based on the following three statements of our policy and stance.

1. We place top priority on providing quick, respectful, and courteous assistance to victims that puts people ﬁrst, basedon Mandom's management principles.

2. We will thoroughly investigate the cause with complete integrity and sincerity, discover the truth, and set up andimplement measures to completely prevent another accident from occurring.

3. We will extend measures throughout the Mandom Group, not blaming any single person, but aiming to ﬁnd out thereal problem.

To make absolutely sure that another accident of this type does not happen ever again, we set up an Accident Investigation andResponse Committee composed of external experts who looked closely at the cause of the accident and studied in detail how toprevent its recurrence. The committee's ﬁnal report was presented in the news release detailed previously (see page 16).
In this KohDoh Report 2016 we have compiled and wish tofamilies, based on the policy and stance presented above.

communicate the eﬀorts we have made so far to the bereaved

Respecting the culture and customs of Indonesia, we alsofamilies of the employees whose lives were lost in the ﬁre andreport on the memorial services held after the accident.

to the employees who are still being treated, along with their

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KohDoh Feature 1 : Report

The Indonesia Plant Fire and Our Response

Adversity Makes the Mandom Group Wiser.
̶Supporting Victims and Their Families,and Remembering Those Who Lost Their Lives̶

Muhammad Arif Kurniawan,
Head of Internal Audit,
PT Mandom Indonesia Tbk

Roughly 1,200 employees took part in the 100th day ceremony

Colleagues leave an oﬀering of ﬂowers

Financial Support and Recovery Program for Victims and Families

The Day of the Accident
It was exactly a week before the Lebaran holidays (the end ofarrived a few minutes later and the ﬁre was extinguished

Many of the victims who passed away were married withare in addition to the workers’compensation insurance theyRamadan), and on the morning of July 10th, it became a day

within an hour. Under police supervision, a total of 53 victims

d ep end ent s . T o s up p o r t t ho s e fam i l i es , t he co m p any

receive from the insurance company.

of tragedy. We were shocked by a huge explosion, followed

were transported to eight hospitals using cars belonging toestablished a foundation funded with donations from Mandom

Almost all survivors have requested to be allowed to return toby black smoke and ﬁre from the DPS production site. Anthe company, employees, suppliers, and ambulances.

Corporation Japan, Mandom Indonesia, and employees of thework again. To prepare them, the company initiated aEmergency Response Team (ERT) reacted quickly, together

Unfortunately, there were ﬁve victims who died in the ﬁre on

Mandom Group (including Mandom Indonesia).

recovery program. This program includes psychologicalwith employees and construction workers in the nearby area,

the site. Other employees were evacuated to a safe location

For the victims who passed away or suﬀered a permanent

counseling, revisiting the work area, and work exercises. Therushing to the site and starting to ﬁght the ﬁre. Fire trucks

and sent home afterwards.

disability, we have provided condolence compensation, acounseling and revisit program has been running smoothly forchance for brothers, sisters and children of the deceaseda few months and work exercises in the actual workplace aremeeting company requirements to work at Mandom

scheduled to start immediately when conditions are ready.

Support for Victims and Their Families
The company directly covered all medical expenses from theincluding through blood donation. These activities continued

beginning and saw to it that the hospitals provided ﬁrst-classeven during the Lebaran holidays.

treatment. We also formed a volunteer group among

Colleagues stationed in Indonesia from Japan also

employees and set up an on-duty schedule for each hospital.

participated in blood donation, and visited the hospitals every

The group supported the victims and families 24/7 at eightweek to cheer up the victims and families.

hospitals and also participated in blood donation for theEven after the victims have come home and switched tovictims when needed. The company provided family

outpatient treatment, the company has continued to support

compensation for those taking care of victims in the hospital,

their families ﬁnancially, as some of the victims still require

as well as transportation costs, meals, daily needs, and so

special treatment at home due to their physical condition,

forth. Our partner distributors also helped support the victims,

and caregivers are oftentimes forced to miss work.

Care for Other Employees
After the accident, production activities came to a total stop,

psychological counseling was oﬀered for 1.5 months until

and we commenced a psychological counseling program forthey were able to get back to work again. Thankfully it only

the employees who worked in the nearby area (No.4 Packing

took a few months to restore the normal state of production.

Indonesia, and scholarships for children until they reach 21
years of age.
The company bears all medical expenses of survivors andprovides funds for cosmetic surgery. The company is also
paying their monthly salary in full during the recovery period
until they can get back to work. These types of compensation(Note)
Laws and regulations concerning labor practices diﬀer between
Indonesia and Japan, however, Mandom Indonesia views conﬁrming tolocal requirements as the bare minimum for compliance and makes aprinciple of maintaining standards that go above and beyond local legal
obligations.

In Conclusion
The accident was a tragedy. In total we lost 28 colleagues.

a big family.

But throughout that diﬃcult time, all of the employees ofThrough this accident we were reminded again about theMandom Indonesia were bound together as a family. Ourconstant necessity of safety. It made us reﬂect upon ourselvescolleagues in the Mandom Group overseas also showed us

and emphasize“Safety First”in every aspect of our policies

deep sympathy for the loss, just like family. We help andand business operations to make sure that this accident will

support each other regardless of boundaries between

be the last and no such event will ever happen again in thedepartments, companies, and even national borders, just likefuture.

Site) but were not directly aﬀected as victims. The

Respecting Local Culture and Customsof folded paper cranes) made by employees of the Mandomheld a 40th day memorial ceremony on August 19. We invitedGroup in Japan. He visited the hospitals, and met withAs reported in our news release on May 11, 2016, we arehandling hazardous materials that may pose a risk to safety

families and victims. It was a great relief, and the victims andmaking eﬀorts to prevent any recurrence in the future, byand reliability. Safety problems may be present even attheir families were deeply moved. They expressed theirreferring to the ﬁnal report of the Accident Investigation andnon-manufacturing workplaces such as oﬃces or sales

gratitude for the visit and the senbazuru.

Response Committee made up of third parties, including

facilities. Therefore, on Safety and Reliability Day, all of ourOn October 19th, the company held a 100th day ceremony,suggestions for measures to prevent recurrence of the cause

employees will observe a moment of silence, and during that

attended by around 1,200 employees.

identiﬁed through analysis by the committee. Based on theweek, each workplace will consider and discuss risks toidea of putting safety ﬁrst, we are working to prevent

safety and reliability. The content of these activities will berecurrence in all our projects and at all of our manufacturing

planned by the Total Risk Management Committee, and thensites, but in order to take this accident as a major lesson andapplied to organizations relating to each issue or

prevent any fading of its memory, we have established July 10countermeasure.

of every year as the Safety and Reliability Day of the Mandom

We take the gravity of this accident very seriously, and toGroup. On this day, we will oﬀer our wishes in memoriam ofensure that no such accident occurs in the future, thethe victims of the accident, and diligently review safety andMandom Group is working continually as team to ensure safe

reliability throughout our group.

and secure business activities.

an“ustaz”(Islamic priest) to speak to employees and praywith them for the victims. We also oﬀered prayers together
every Friday after the weekly congregational prayer.
On October 1st, the CEO of Mandom Corporation, Motonobu
Nishimura, visited Indonesia and brought“senbazuru”(strings

The ustaz delivers a sermon
at the 40th day ceremony

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Establishment of Mandom Group Safety and Reliability Day

In memory of the victims and to pray for them, the company

Employees in attendanceat the 40th day ceremony

President Makmun Arsyad prays alongside
employees at the 100th day ceremony

It is not just machinery at manufacturing sites or workplaces

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