The presence of PT Adaro Indonesia in South Kalimantan has influenced the current economic, social and natural environment of the province down to village level and the company recognizes that there is a responsibility to give back to these local communities to ensure the development of a better life in the surrounding areas and also expand the community's potential towards becoming an independent , environmentally sound and sustainable society.
To support this goal, the company carries out CSR programs that encompass four key areas of community development comprising economic development, educational enhancement, health improvement, and social cultural promotion with the ultimate goal of creating sustainable and independent post-mine communities
Funding for the CSR programs has been increasing each year and reflects the potential needs of each area around the operational location that covers 6 regencies within the provinces of South Kalimantan and Central Kalimantan. For the year 2010, Adaro Energy and its mining contractors allocated Rp 53.2 billion for these programs.
PT Adaro Indonesia's commitment to the community through its CSR programs have gained both national and international recognition.
In 2010, Adaro received several awards, such as the KSN Award from the Ministry of Social Welfare, GKPM Award from the Coordinating Minister for People's Welfare, and Asia Responsible Entrepreneurship Award (AREA) from Enterprise Asia, a non-profit organization based in Malaysia and registered in Hong Kong.
The CSR programs are designed to take into account participation by the community in all the activities, starting from planning and implementation up to monitoring and evaluation. Usually a village conference is conducted in the planning stage and the plan is implemented through a participation scheme.
The CSR programs are also developed with regard to local policies and other potential that is in line with corporate strategies. Through a dialogue mechanism with the development team, the balance between the CSR programs and local governments' development programs are ensured and avoids overlap in the implementation of the programs.
ADARO'S CSR PROGRAMS
Adaro has many programs underway that cover all aspects of the key community development areas of economic development, educational enhancement, health improvement, and social cultural promotion. Highlights of projects that Adaro has recently implemented include:
1. Adaro Model Village
The Adaro Model Village is a program implemented to achieve post-mining communities that are independent in the economic, management and academic aspects. This program is a combination of all areas within the scope of Adaro's CSR programs.
Under this program, Adaro provides the communities with training to improve the quality and mindset of the community members and village officials, and to set up the community's productive business by utilizing the existing potential, with the ultimate goal to fulfill the criteria of an independent village. The criteria include aspiring leader, synergistic village institutions that mutually support rural
Adaro is committed to become a responsible partner and a good neighbour toward the community surrounding its operations area
In carrying out such activities, the needs of the community are also investigated by performing an assessment on the need for proposed projects in cooperation with top state universities in Indonesia and by carrying out a direct constructive dialogue mechanism between Adaro Indonesia and the local communities. Through these dialogues it is expected that the community's initiatives can be stimulated through consideration of the local potential for support of projects in specific areas.
Results of the assessment and bilateral dialogues are used as the prime basis for designing the Company's medium term plan, whose implementation can be adjusted by ongoing review of the development progress of the local communities. Adaro also coordinates with the local regency governments on program implementation to ensure the avoidance of overlap between the company and government programs, results of which are published in writing as the annual regent decrees. This coordination also includes active participation in the discussion on the Local Development Planning in the six partner regencies.
development, well-managed rural administration, short, medium, and long term agenda, and community businesses that support the economy of an independent community.
Adaro Model Village has been implemented since 2009. The pilot project was implemented in Dahai village, Balangan regency and Padang Panjang village, Tabalong regency of South Kalimantan. With the collaboration of the team from the Center For Alternative Dispute Resolution, Regulation & Policy, and Empowerment (CARE) of Lembaga Penelitian dan Pengabdian Masyarakat (LPPM), Adaro expects that within 3 years these villages will have independent village administrations, sound rural development, good layout, with the residents running the programs through their own ability and independence. Going forward, the two villages are expected to be a model for the development of other villages.
After only one year of implementation, the Model Village program won the Platinum KSN Award from the Ministry of Social Welfare in 2010.
2. Rural Economic Movement for Islamic Students (Gema Desa Santri)
Adaro implemented the award winning Rural Community Economic Movement program with the aim of stimulating the economic development of rural communities. To ensure more effective implementation, this program is managed under cooperation with Islamic boarding schools, NGOs, Youth Pioneer Groups, and the local military command (Kodim).
For Gema Desa Santri, Adaro utilizes boarding schools as economic stimulators for the communities, with the expectation that other community groups will follow. The Darul Mustafa Islamic Boarding School is among those chosen by Adaro since this boarding school is a social institution that has strong roots in the Tabalong regency in particular, and in South Kalimantan province in general.
Infrastructure development, horticulture and cattle rearing are examples of the activities carried out within the Gema Desa Santri program.
Other programs carried at in cooperation with NGO's Pioneer Groups and Kodim include development of fish farming, craft industry and multipurpose cooperatives.
3. SME Development Program
One of the goals of the CSR programs conducted by Adaro is to create economic independence for its communities. Micro, Small and Medium Enterprise development is one sector that has great potential to ultimately build a society that is economically independent.
The problems faced by small entrepreneurs in developing their business are generally related to lack of capital, skills and marketing.
One of the SMEs that have been coached by Adaro is "Riser Service" Electrical Workshop. This workshop was founded in 1996 by Mr. Noor Syamsu Zauhar. Initially, it only had 1 employee, and due to the lack of funds and skills, Riser Service could not expand the business. In 2005, Adaro started to support its funding with a loan from the Microfinance Institution, and also provided training through its Business Development Institute.
As of the end of 2010, Riser Service employed 16 employees and its monthly turnover is continually increasing. Riser Service now operates in 3 business locations, 2 in Tabalong and 1 in Barito Timur.
4. Suka Maju Women Farmer Group Initiated by the perspective on the important roles of women in family welfare, in which other than nurturing the children, women can also help their husband in supplementing family income, a number of housewives founded a womens farmer group called Kelompok Wanita Tani Suka Maju which has the dream to improve the welfare of their families.
A cooperative was established by the Agricultural Department of Tabalong regency in 2005 and now 25 people are listed as its members. The cooperative has also set up a savings and loan cooperative with most of its funding supported by Adaro's micro financing institution. Although still in its early stages, this cooperative has already given benefit to its members.
Besides supporting the funding, the Finance Institute also coaches its members by acting as a mediator in support of the members' business of vegetable farming and group partnership, as well as their development as vegetable farmers.
5. Rubber Smoking Stations
The Rubber Smoking Station project is part of Adaro's CSR program that is an extension of the high-yield rubber plantations development that has been underway for a number of years and is designed to increase the income of rubber farmers and thus provide incentives to continued small holder rubber plantation development.
Since 2005, Adaro has been giving funding support for the building of rubber smoking stations which produce higher quality semi processed rubber sheets, a higher value product which increases the selling price and revenue of rubber farmers. Adaro also founded a business development institute named Lembaga Pengembangan Bisnis (LPB) and through this institution, Adaro provides various training for the communities such as group dynamic training, post-harvest business training for farmers, and the training on the calculation of dry rubber content.
There are currently a total of 5 rubber smoking stations in Balangan regency (in Babayau and Tamiyang village), 2 stations in Tabalong regency (Balida and Banyu Tajun village) and 1 station in Warukin village.
6.Clean water distribution to the communities through pipelines
Adaro has distributed clean water to local communities since 2002 out of the awareness that it is a basic necessity of life needed by the surrounding communities.
processing it into clean water using a Potable Water Treatment Plant which has the capacity to produce 20 liters of water per second. Currently, this potable drinking quality water is being distributed through a 10-kilometer pipeline to two local villages.
The water treatment is handled by a team called Badan Pengelola Air Bersih (BAPEL – AB) that consists of members of the communities. Adaro and Perusahaan Daerah Air Minum participate as the team's supervisory board.
Clean water distribution from the mine water has gained a number of awards, and in 2010 this activity won 2 awards, national and international. For the national scope, it won the Platinum Trophy of GKPM Award from the Coordinating Minister of People's Welfare, while in the Asian scope, Adaro won Asia Responsible Entrepreneurship Award (AREA)'s recognition of Green Leadership Award from Enterprise Asia.
7. Scholarship Program for Less Fortunate Students and High Achieving Students
Adaro's dedication to education is confirmed by its scholarship program which has been maintained since the year 2000. Scholarships are given to less fortunate students and also to outstanding students at all educational levels from elementary schools until doctorate programs and are currently carried out in 5 regencies, Tabalong, Balangan, South Barito, East Barito and Barito Kuala, as well as in Banjarmasin, the capital of South Kalimantan.
As of the end of 2010 scholarships had been provided for around 11,246 students. The details are:
In addition to these highlighted projects, Adaro continues to support and expand many other multi year programs in all aspects of the four key development areas. These include the following :
OTHER SOCIAL ACTIVITIES
In addition to the regular CSR programs conducted surrounding the operational location, Adaro also makes contributions to the communities outside of its location. The contributions are given as donations:
"ITB For Everyone" scholarship. In 2010, Adaro continued to make donation for the scholarship of 5 students attending the Institute of Technology Bandung for the period of 2010 / 2014 in the amount of Rp 550 million. For the previous period of 2009/2013, Adaro also made a donation of Rp 500 million.
Donation for handicapped children Olympics through SOINA (Special Olympic for Indonesia) to prepare for the Special Olympic World Summer Games Athens 2011 (SOWSG) in the amount of Rp 500 million.