Corporate Social Responsibility
A long-term integrated policy in the form of PTBA CSR Guidelines that focus on six main areas : (1) economy, (2) environment, (3) human rights, (4) employment practices and proper working conditions, (5) product responsibility, and (6) society.
These six focus activities are in line with the international standards of CSR impementations as set by Global Reporting Initiatives (GRI), and formulated in the implementation strategy based on business ethics/norms generally applied : sustaining economic development and local community empowerment, showing concern for environmental conservation, 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.
The Company carries out a number of social, economic and environmental activities with an aim of creating equitable economic, social, and environmental development an welfare. These activities are intended to exercise the company's corporate social and environmental responsibility toward neighboring community with an aim of improving their socio-economic welfare and environmental conservation.
PARTNERSHIP AND COMMUNITY DEVELOPMENT PROGRAM
The objective of Partnership Program is to elevate the resilience and self-reliance of small-scale busniesses and cooperatives in the surrounding area through financial and from the Company's profit. Community Development Program is aimed at improving the community living standard.
The Company is determined to enhance the quantity and quality of its Partnership and Community Development Program efforts. For Partnership Program, the Company strives to improve the independence of its trained partners and expand the market of their products particularly in the Company's operating areas. Cooperation with several competent parties in channeling partnership as well as community development funds to achieve their target of better quality.
In 2011, the company encouraged and engaged the surrounding community in designing, executing and monitoring the socio-economic empowerment program, in order for the construction to be effective and well-focused according to the people's needs. The company also gave priority to educational activities in the Community Development program. Through these two programs, the Company is confident that it is able to improve the socio-economic wellbeing of the community and enhance their self-reliance and competence.
Disbursement of funds for Partnership and Community Development Program in 2011 increased 55,4% from 2010, which amounted to Rp 93,42 billion to Rp 145,20 billion.
PARTNERSHIP PROGRAM
The Company focused on strengthening trained partner's self-sufficiency and promoting the sales of their products. The distributing of partnership funds is very selective by taking into consideration the conditions of prospective partners.
The commodity to be prioritized are commodities that the area relies on such as traditional commodity with development potentials, commodity with export potentials, and labor intensive commodity.
In 2011, the Company disbursed Rp 98,95 billion to Partnership Program. The funds disbursed included soft loans to medium and small businesses amounting to Rp 11,62 billion, through sic SOE disbursing agents a total of Rp 84,81 billion, and development funds amounting to Rp 2,51 billion. Fund disbursed to Partnership Program in 2011 increased 45,9% from actual disbursement in 2010 which totaled Rp 67,73 billion.
Soft loans were distributed to 473 small businesses and cooporatives of varied industrial sectors in five areas. The Company will increase its efforts and professionalism in distributing the funds and improve turnover ratio of the loans extended in relation to Partnership Program.
COMMUNITY DEVELOPMENT PROGRAM
PTBA Community Development Program is focused on six main activities, which are Education, Public Facilites and Amenities Development, Religious Development, Community Health Improvement, Natural Conservation and Natural Disaster Relief.
This program is designed to improve the living standard and welfare of the community.
Funds for this program increased by 76,9% from Rp 25,7 billion in 2010 to Rp 45,3 billion in 2011. All relief are extended to four working areas, which are Tanjung Enim Mining Unit, Ombilin Mining Unit, Tarahan Port and Kertapati Pier.
AREA DEVELOPMENT PROGRAM
Area Development Program is aimed at empowering 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 2011, Area Development Program was directed to cater to the community's needs. Participation in local development was made by donating Regional Development Participation Fund. For 2011, the Company donated Participation Fund totaling Rp 38,60 bilion to South Sumatera Provincial Administration, Lampung Regency, Muara Enim Regency and Lahat Regency Administration, which represented an increase of 125,4% from the preceding year.
The Company participated in the sports facilities through tennis building as part of SEA GAMES arena in Palembang. The Company also participated by donating funds for construction of sports on national and local levels.
In 2011, total funds disbursed through Area Development program amounted to Rp 74,09 billion, or up 229,5% from Rp 22,49 billion in 2010.
ENVIRONMENTAL MANAGEMENT
The Company's mission is realized through continuously managing, monitoring, developing and rehabilitating the environment.
Accredited Environmental Management System
The Company runs ISO 14001: 2004 accredited system to enhance the effectiveness of environmental management that includes environmental management, environmental audit, environmental performance evaluaton and basic living cycle study.
Environmental Research and Development
In 2011 the Company conducteda series of studies and researches to evaluate the condition and to develop the potentials of the surrounding areas, such as The Company developed and mass-produced Mikoriza Arbuskula, The Company is also developing tissue culture for multiplying plants, utilizing used oil for land clearing, revegetation on palm plants and direct revegetation experiments and conservation of local plants.
In addition to those activities towards environmental protection, the Company practises Green Mining and provide environment socialization.
Progress Report of Reclamation and Rehabilitation Program
Land clearance and mining area reclamation have been carried out pursuant to the provision of Law No. 4/2009 and Minister Regulation No. 18/2008 concerning Reclamation and Mine Closure. The entire provision has been met by the Company.
The Company continued with the construction of Tahura Enim dividing the post-mining area into three blocks and twelve zones:
Among the three blocks are :
1. Protection Block (766.40 Ha)
2. Plant Collection Block (2,973.14 Ha)
3. Exploitation Block (1,655.03 Ha)
And the dividing of twelve zones are :
1. Receiving/Recreational Zone
2. Utility Zone
3. Plantation Forest Zone
4. Collection Garden Zone
5. Fruit Garden Zone
6. Cattle Breeding Zone
7. Water Recreation Zone
8. Productive Research Zone
9. Agro-forestry Zone
10. Fishery Zone
11. Camping Zone
12.Animal Zone
In 2011, the following post-mining reclamation activities for Tahura Enim were carried out to set up a tissue culture laboratory to cultivate prime seedlings, relocating people and public cemetery from areas, continuing the construction of sportshall, bowling alley, jogging track and futsal court, proceeding with the construction of an integrated office of WSH & Environment Work Unit and BWE System, conducting a local field survey jointly with Bengkulu University, conducting research on intercrop plants jointly with UNSRI at Banko Barat, performing plant enrichment with local plants with high economic value in Air Laya and Banko Barat and reviewing Tahura Enim master plan.
FULFILLMENT OF EMPLOYEE RIGHTS AND RESPECT FOR HUMAN RIGHTS
The Company is fully aware of the importance in 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 AND ENVIRONMENT
To achieve the industry high standards of work safety, health and environment, the Company set of policy, facilities and amenities for all employees. In the implementation, the company has a certification in Work Safety and Health Management System from the Department of Manpower and Transmigration.
COMMITMENT TO PRODUCT QUALITY AND CONSUMER PROTECTION
Product quality standards and ensuring consumer protection have a significant effect on the continued growth of the Company. Therefore, 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
Through Partnership and Community Development Program and Area Development 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 revelant parties.
SUSTAINABILITY REPORT
The Company publishes Sustainability Report, which is a comprehensive of responsibility for all stakeholders on the management and realization of the Company's CSR program.