To enhance the effectiveness and quality of Corporate Social Responsibility (CSR) program, the Company has taken strategic steps by improving the mechanism of exercising its CSR function, involving the Local Administration and other competent parties to plan and execute its CSR programs. The Company invites the local community to join in the planning, executing and monitoring of the programs that directly affect the empowerment of the socio-economic life of the miningcommunity.
The Company formulated a long-term integrated policy in the form of PTBA CSR Guidelines that were endorsed by the President Director at the end of 2009. The guidelines focus on six main areas: (1) economy, (2) environment, (3) human rights, (4) employment practices and proper work conditions, (5) product responsibility, and (6) society.
These six focus activities are in line with international standards of CSR implementations as set by Global Reporting Initiatives (GRI), and formulated in the implementation strategy based onbusiness ethics/norms generally applied:
- Sustaining economic development and community empowerment to improve the welfare of local community and public at large.
- Showing concern for environmental conservation, including restoration of post-mining areas.
- Guaranteeing non-discrimination and respect for human rights.
- Ensuring good health care and work safety as well as employee welfare improvement.
- Ensuring product safety and consumer satisfaction.
- Nurturing a harmonious relationship with local community by applying good corporate governance principles.
PARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAM
The objective of Partnership Program is elevating the resilience and independence of small-scale businesses and cooperatives in the surrounding area. Community Development Program is aimed at improving the community living standard by giving them financial aid and making them aware of the need for education,social interaction and harmony with natural surrounding.
In 2010 the Company extended funds for Partnership andCommunity Development Program amounting to Rp 93.42billion or 69,93% of total budget of Rp 133,59 billion. For Area Development a total of Rp 21.17 billion was disbursed in 2010.
PARTNERSHIP PROGRAM
Throughout 2010 partners enjoyed the following program activities:
- Distribution of Partnership Funds in soft loans to small businesses and cooperatives in eight areas, i.e. South Sumatra, Lampung, DKI Jakarta, West Java, Central Java, Yogyakarta, Banten and East Java.
- Entrepreneurship training for prospective partners
- Promoting and marketing partners’ products through participation in a number of exhibitions in major cities of Indonesia.
- Partnership Funds disbursed jointly with PTPN VIII,PTPN X and BPR.
In 2010, the Company disbursed Rp67.73 billion in Partnership Funds, or 98% of total allocated funds of Rp69.40 billion. These funds were distributed to 575 small business units and cooperatives in soft loans amounting to Rp14.08 billion,development funds totaling Rp2.30 billion, and joint project funds of Rp51.35 billion.
COMMUNITY DEVELOPMENT PROGRAM
PTBA Community Development Program is focused on six main activities, which are Natural Disaster Relief Program, Education and Training, Community Health Improvement, Public Facilities Construction, Religious Facilities Development and Natural Conservation. This program is designed to improve the living standard of the community.
Along with the Company’s growing operations, funds for Community Development Program increased significantly by110% from Rp11.93 billion in 2009 to Rp25.70 billion in 2010.
Natural Disaster Relief Program
Natural disaster relief program is launched by taking into consideration the gravity of the disaster and the geographical proximity to the Company’s operating area. In 2010 relief was extended to the following victims in disaster-stricken areas:
- Earthquake and tsunami in Mentawai, West Sumatra;
- Fire in Muara Enim, South Sumatra;
- Eruption of Mountain Merapi, Central Java, and landslide and flood in Wasior, Papua.
Public Health Improvement
To complement the health improvement program previously conducted, the Company assisted the community in the following activities:
- Organizing mass religious circumcision for 260underprivileged children in Muara Enim and Lahat.
- Organizing cataract surgery for 20 underprivileged patients in Muara Enim and Lahat.
- Providing assistance in limb surgery for underprivileged people in Tanjung Agung, Muara Enim.
- Providing nutritious food of 13,600 packets for underprivileged people in Muara Enim, Lahat, Tarahan, Kertapati and Ombilin.
- Donating two generators to BARI Hospital, Palembang.
Public Facilities Construction
By doing some activities related to the provision or improvement of public facilities, including:
- Constructing Monument of Heroic Battle, park and fountain in Tanjung Enim city worth Rp3.47 billion.
- Asphalting and hardening public road of 3,867 meters in Ring 1 zone of the Company.
- Constructing/renovating waste dumps in Lawang Kidul and Muara Enim.
- Renovating five community function halls in Merapi Barat, Merapi Timur and Lawang Kidul.
- Financing an embarkation lounge, Lampung totaling Rp1.34 billion.
Religious Facilities Development
- Providing renovation funds for 36 mosques/mushollas
- Channeling funds for various religious activities such as MTQ, Tablig Akbar, Maulid Nabi and Isra’ Mi’raj commemoration in all Ring I districts.
Natural Conservation
The Company was engaged in natural conservation programs that include:
- Jointly with the community and government agencies launching Clean Friday and City Greening programs by planting trees and cleaning the areas of Ring I.
- Delivering 8,000 shelter trees and productive plants in Lahat and Muara Enim.
- Distributing 150 organic and un-organic waste bins to schools and public places in Lahat, Muara Enim and Tanjung Enim.
AREA DEVELOPMENT PROGRAM
The Company has been pro actively managing Area Development Program is aimed at utilizing the community economic potentials simultaneously honoring the Company’s commitment to improve their living standard. In this program the Company extends physical and non-physical aid to a wider extended area.
In 2010, emphasis was given to direct and indirect donation to improve the income of the region where the Company operates. Direct donation to improve regional income (PAD) is in accordance with the rate of coal production royalty as ruled by the local administration. The royalty rate used as a basis of calculating Area Development funds.
Besides managing this program, the Company participates in the construction of various facilities and amenities for government agencies, police precincts and other public service institutions. Total funds disbursed in 2010 amounted to Rp4.05 billion.
ENVIRONMENTAL MANAGEMENT
The Company’s mission in environmental management is realized through continuously managing, monitoring,developing and rehabilitating the environment.
The company takes care of the physical and social environment in which it operates by preventing, restoring, conserving and protecting the environment. The company complies with environmental regulations and implements a consistent, integrated, documented, and continued environmental management system, and continuously improves its system to reach a maximum result.
The Company adopts accredited ISO 14001:2004 system to ensure an effective environmental management covering management system, audit, performance evaluation of the environment and study of basic living cycle.
The Company consistently manages the environment to reduce the impact of mining activity to the community and environment which is in line with the Company’s mission, that is ”To give the utmost contribution to community welfare and environmental conservation.” To measure the effectiveness of environmental management, the Company sets a parameter of environment target indicators on a yearly basis in accordance with the law.
The implementation of every environmental management program is monitored and evaluated by using the parameter taking into account the major effects arising from mining activities.
The Company runs the following environmental management programs:
- Monitoring converted land area
- Land clearance and reclamation of used mining sites
- Plants maintenance
- Draining mud out of sedimentation pool
- Making sedimentation pool
- Cultivating and planting seedlings
- Management of top soil
- Management of mine acid water
- Management of erosion
- Reserach and development
- Emissions, effluent and waste control
- Partnership and community development program
The Company routinely monitors the environmental condition of the surrounding mining area to minimize environmental damage, and at the same time to mitigate risks to the environment. Environmental monitoring activities included monitoring water quality, air quality, soil quality, land pollution, erosion as well as wildlife and aquatic organisms living around the mining area.
To preserve the surrounding environment, the Company conducted various studies and researches to evaluate the condition of mining area and its surrounding, and to develop environment potentials in the future. Several research activities conducted in 2010 were:
- Implementation & development of Mikoriza to support revegetation of used mining areas.
- Conservation of local plants.
- Revegetation with oil palms and direct trial-and-run revegetation.
- Study and use of used oil for explosives (ANFO compound).
- Training local community in waste management.
- Cultivating seedlings by tissue culture method.
The company consistently evaluates and controls hazardous and toxic wastes in concert with the prevailing laws and regulations.
The Company implemented Green Mining pattern by planting trees outside the mining area and releasing fish in the rivers together with the community members. To socialize with the local community the Company organized training programs, put up banners, posters and billboards, used bench marking, distributed books and magazines, and gave presentation on the subject of environment.
For its continued efforts in environmental conservation the Company received several environmental management awards:
- Green PROPER Rating from Environment Ministry and South Sumatera Governor
- Aditama Rating in Enviro Award from EMR Ministry
The Company took a step further and pioneered in environmental conservation and post-mining rehabilitation by designating and designing a post-mining area of 5,934 ha to serve as People’s Forest Park.
FULFILLMENT OF EMPLOYEE RIGHTS AND RESPECT FOR HUMAN RIGHTS
In the eyes of the Company, employees are not only stakeholders but also assets who determine its success in achieving corporate objective and business target. The Company is fully aware of the importance of creating a harmonious working relationship between the management and all employees. The Company treats every individual equally regardless of ethnicity, race, religion, gender and political inclination. Likewise, the employees are free to unite and have a Collective Labor Agreement.
WORK SAFETY, HEALTH ANDENVIRONMENT
A set of policy, facilities and amenities are in place for all employees so as to meet the industry high standards of work safety, health and environment. The Company has a certification in Work Safety and Health Management System from the Department of Manpower and Transmigration.
The Company sets a basic work safety and health (WSH) rule: “Work safety and health are the responsibility of all people. The Company and related parties are determined to create a healthy, injury-free working environment and operates by nomal operating standards”
In 2010, to guarantee the quality of WSH practice in its operating areas, the Company took three strategic steps in relation to WSH:
- WSH-based human resource development for mining employee certification aimed at motivating employees certification aimed at motivating of all managerial levels (from line management) to encourage awareness of WSH aspect.
- Improving worthiness of production equipment and mine auxiliaries for equipment certification to guarantee that equipment are safe to use according to WSH standard. The result was 28 units were certificated (21 loaders, 4 pressure vessels, 3 electrical installations) and +956 units (dump truck and heavy equipment) were labeled operating permit by KTT.
- Inserting WSH aspect in pre-qualification process of mining contractor candidates in implementing Contractor Safety Management System (CSMS) to discover partners’ performance in observing WSH Management System.
To control work accident risks, the Company forms Fire and Accident Control Team under the coordination of Work Safety & Health and Environment Work Force of Tanjung Enim Mining Unit, tasked to organize and control fire and accident handling activities. Although mainly responsible for the Company’s internal purposes, this Team is also available to help people outside the mining compound as corporate social responsibility duty.
As a reflection of its concern for the local community, in 2010 the Fire and Accident Control Team provided assistance in the following areas:
- Evacuating earthquake victims in Mentawai.
- Evacuating victims of Mt. Merapi eruption in Jogjakarta.
- Controlling fire in local residential areas.
COMMITMENT TO PRODUCT QUALITY AND CONSUMER PROTECTION
The Company is fully aware of the importance and advantage of meeting product quality standard and ensuring consumer protection. Both aspects have a significant effect on the continued growth of the Company. For this reason the Company sets very stringent criteria in production process and output as well as in quality control.
HARMONIOUS RELATIONSHIP WITH THE COMMUNITY BASED ON GOOD CORPORATE GOVERNANCE PRINCIPLES
Turning its vision into reality to maximize stakeholders’ return, the Company has formulated an integrated Corporate Social Responsibility program.
Through Partnership Program, the Company systematically conducted activity programs involving the community either in planning or in executing such programs. In accordance with transparency principle, the Company makes itself accessible and fosters reciprocal communication with the community and other relevant parties.
