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SUSTAINABILITY REPORT
PT ADARO INDONESIA
2009
PT ADARO INDONESIA
Table of Contents
Cover: Children
cheerfully playing
around the Rubber
Fumigation House,
Outstanding Rubber
Plantation Group,
Tamiang Village,
Tabalong, South Borneo
Table of Contents
00
Report Overview
01
Greetings from the President Director
02
What & Who Adaro Indonesia Is
04
Our Strategy
12
Our Performance
14
Supporting State and Community Development
Economic Performance
16
Product Benefits
17
Local Development
Local Suppliers
18
Local Employees
18
Community Development
19
Public Facilities
42
Indirect Economic Impact
43
Prioritizing Safety and Environmental Conservation
Protecting Occupational Health and Safety
46
Conserving the Environment
48
Employee Development
62
How the Stakeholders See Us
68
How We Made This Report
72
00
Report Overview
Message to The Readers
This is the second Sustainability Report
published by PT Adaro Indonesia (from
here onward called “Adaro Indonesia”),
but this would be the first report using
the Global Reporting Initiative (GRI)
Guidelines as reference. The report
describes Adaro Indonesia’s efforts in
balancing its economic, social and
environmental performance.
Scope of the Report
The data presented in this report describes
the economic, social and environmental
performance of Adaro Indonesia in 2009
and in the two preceding years (for several
data). The scope of the report is not only
the activities of Adaro Indonesia in the
operational sites and head quarter but
also the community outreach programs
of Adaro Indonesia. Several contractor
data is also presented in this report. [3.6]
Due to limited documentation and
recording, not all of the organization’s
activities and performance can be
presented in this report.
Guidance
We have used the sustainability reporting
framework published by the GRI version
3.0 (Sustainable Reporting Guidelines –
G3).
Feedback from the Readers
This report was published to be read by
all of our stakeholders, both internal and
external, such that they will give
comments, critiques and suggestions,
which may contribute to the performance
development of Adaro Indonesia. Your
comments, critiques, and suggestions may
be sent to [3.4]:
1. Head Office:
PT. Adaro Indonesia
Menara Karya 22nd-23rd floor,
Jl. HR. Rasuna Said, Blok X-5 Kav 1-2
Jakarta, 12950, Indonesia
Ph: (62-21)2553-3000
Fax: (62-21)5211-266
Email: [email protected]
2. Operating Office:
PT. Adaro Indonesia
Mine office,
Hauling Road KM73,
Wara, Tabalong
PO BOX TTB 110 Tanjung 71500
South Kalimantan
Ph: (62-526) 2021-997 / 98
Fax: (62-526) 2021-996
Email: [email protected]
Other Information
For further information about Adaro
Indonesia, please visit our websites
www.adaro.com and
www.comdev-adaro.com
“
Describing Adaro Indonesia’s
efforts in balancing its
economic, social and natural
environment performance.
”
01
Greetings from
the President Director
[1.1]
Dear honorable stakeholders,
Indonesia has a large quantity of natural
resources that can benefit the people at
large. Coal, as one of the abundant natural
resources in Indonesia, is beneficial for
generating energy. The market indicates
that global demand for coal is increasing.
In addition to its lower price compared to
those of other energy resources,
Indonesian coal also has a variety of
qualities that is adjustable regarding
needs, usage and expected benefits.
Seeing this as an opportunity, Adaro
Indonesia is encouraged to explore and
mine coal that can be processed by other
particular parties into an energy resource,
which is beneficial to all.
Corporate Social Responsibility (CSR) has
become a significant embedded aspect in
every activity we do. The essence of CSR
for us is the existence of mutual goodwill.
We realize that our activities may change
not only the natural environment, but also
the social and economic order in the area
in which we operate. It has been the
mutual goodwill of the shareholders that
there is a responsibility to give back what
we already have and to develop the
potential for creating a better life in the
surrounding areas of our operation.
However, goodwill is not enough, we also
realize and are responsible to fulfill other
stakeholders’ interests. We see our
stakeholders’ interests wholly as the
foundation for the development of our
corporate strategy in order to sustain our
business.
02
The presence of Adaro Indonesia in South
Kalimantan, more or less, has influenced
the current economy, social and natural
environment. The economic development,
expansion of social and public facilities,
community development, reclamation
and natural environment conservation are
the impacts of our existence. Nevertheless,
we recognize that what we have done
must not only bring temporary benefits
to the surroundings, but there should be
continuous and sustainable benefits that
contribute to the creation of an
independent society based on a harmonic
relationship with the natural environment,
especially when the time has come to stop
operating in the future. We avoid indulging
the community with programs that the
community wants. In contrast, we consider
the programs regarding the needs of the
community by greater exploring the
community’s potentials. This is our
challenge: that we should not give up
initiating programs in order to not only
develop the economy but also to expand
the community’s potentials toward an
independent and environmentally sound
society. Hence, when it is time for us to
step out from business, the community
that we would leave will be sustainable.
In order to realize the above mentioned
goals, we have been improving ourselves
by developing our organizational
management capability including
addressing the health and safety of our
employees. In relation to this, we use the
internationally accepted Standard and
Operational Procedure for mining because
“
We see our stakeholders’
interests holistically as the
foundation for the
development of our corporate
strategy... we recognize that
what we have done must not
only bring temporary benefits
to surroundings, but that there
should be continuous and
sustainable benefits that
contribute to the creation of
independent society based on
harmonic relationship with the
natural environment,
especially when the future
time has come for us to stop
operating.
”
Garibaldi Thohir,
President Director
PT Adaro Indonesia
we realize that our employees are in a
high-risk workplace. Moreover, we also
use the Millenium Development Goals
(MDGs) as guidance in carrying out our
community development programs.
We have received national and
international rewards and
acknowledgements for the activities we
initiated and the high-quality coal we
provide. Yet, we do not want to stop
there. We realize that we still have to
develop and improve ourselves to be more
capable and to bring more benefits to our
stakeholders.
What is presented in this report is not
only pride in what we have achieved but
also self assesment on what we have
done. For this reason, we are pleased to
welcome comments, critiques and
suggestions from the readers.
Enjoy your reading!
Garibaldi Thohir
President Director
Adaro Indonesia
03
What & Who
ADARO INDONESIA is
The Mining Site
Adaro Indonesia’s mining sites are located
in Balangan and Tabalong Regency in
South Kalimantan Province. Both crushing
plant and loading port are located in
Kelanis Village, South Barito Regency in
Central Kalimantan Province [2.5].
There are three mining sites of Adaro
Indonesia:
1. Paringin mining site
2. Tutupan mining site
3. Wara mining site
Adaro Indonesia is one of the
government’s first generation of
contractors for coal mining and
exploration in Balangan and Tabalong
Regency, South Kalimantan Province, as
well as for coal sales, based on the Coal
Contract of Work (PKP2B) number
J2/J.i.DU/52/82 dated November 16, 1982.
Adaro Indonesia started production in
1991, but the company began to sell coal
one year later in 1992. Adaro Indonesia
is a corporation designated to be under
National Vital Objects (OBVITNAS) in the
Energy and Mineral Resources Sector
based on the ministerial decree KepMen
ESDM No.1762 K/07/MEM/2007 in regards
to the Protection of National Vital Objects
in the Energy and Mineral Resources
Sector.
N
Balikpapan
East Borneo
Central Borneo
Kelanis Barge
Loading Facility
Tanjung
PT ADARO INDONESIA
Tutupan Mine
Dahai Office
Paringin Mine
Coal Haul Road
Kandangan
Rantau
South Borneo
Binuang
Banjarmasin
Martapura
Pulau Sebaku
Pulau Laut
Offshore Transhipment Site
Pulau Laut Coal Terminal
Pulau Laut Airstrip
BORNEO
04
“
Adaro Indonesia is a
corporation designated as one
of the National Vital Objects
(OBVITNAS) in the Energy and
Mineral Resources Sector.
”
Our Coal Supply Chain
[2.2]
1. Tutupan Mine
2. Exploration Driling
3. Overburden stripping
4. Overburden dumping
5. Coal Mining
6. Hauling coal to the pit
stockpiles
7. Loading coal into coal
haulers
8. Trucking coal on the haul
road
9. Dumping coal at Kelanis
10. Coal crushing at
Kelanis
11. Coal stockpiling at
Kelanis
12. Barge loading at
Kelanis
13. Barging coal on the
Barito River
14. Barging coal at the
Taboneo anchorage
15. Bulk carrier self loading
with its own cranes
16. Bulk carrier being loaded
by floating cranes
17. Bulk carrier loading at
the IBT terminal
05
Adaro Indonesia is a well known envirocoal
[2.2] producer that has marketed its
product to more than 18 countries around
the world, including India, Japan, China,
the United Kingdom, Spain, and the United
States of America where envirocoal is used
as an energy source by coal-fired steam
power plants (PLTU) [2.7].
As 25-30% of its total sales meet domestic
coal needs, Adaro Indonesia is the largest
supplier for the domestic coal market,
especially for coal-fired steam power
plants (PLTU) in Java and Bali Province
(PLTU PEC, PLTU Paiton 1-2, PLTU Jawa
Power, PLTU Cilacap, and PLTU Suralaya),
the cement industry, and the pulp and
paper industry.
North Europe
Finland
Denmark
Germany
Netherlands
France
England
USA
Chile
South East
Asia
Philippines
Malaysia
Thailand
South Europe
Spain
Italy
Slovenia
South Asia
India
Envirocoal Market Segment in Indonesia
Cement
Industry
26%
Others
Industries
5%
Power Plant
69%
06
Envirocoal Market Segment in the World
INDONESIA
27%
AMERICA
3%
EUROPE
11%
ASIA
59%
Total Assets in 2009
(US$)
Land
Road
Building-Silos/Workshop/Storage Facility
Crushing & Stockpiling System #1
Weigh Bridge & Handling System
Vehicles
Building-Mess/Canteen
Bridge
Settling Pond
Survey Equipment
13,862,578.22
1,426,858.52
349,972.63
6,284,173.8
145,449
59,780.41
8,220.75
38,771.12
713,970.8
1,416,689.51
TOTAL
24,306,464.76
North Asia
Japan
South Korea
China
Taiwan
Hong Kong
“
With its product marketed
to more than 18 countries
around the world, Adaro
Indonesia is also the
largest supplier for the
domestic coal market.
”
Overview of Adaro
Indonesia’s Market
According to the coal contract, Adaro Indonesia has the right to explore, mine and
sell coal until 2022 (the extension of contract is allowed for twice with 10 years for
each extension based on the mutual agreement principle). The contract covers an
exploration location of 35,800.80 ha (reductions occurred several times, with total
reduction of 1,480 km2 from the initial exploration location size).
Name of company [2.1]
Operating Office [2.4]
Indonesia
: PT Adaro Indonesia
: Mine Office Wara KM 73, Hauling Road
PO BOX 110 TTB 110 Tanjung 71500
South Kalimantan
Head Office [2.4]
: Menara Karya Lt 22-23, Jl. HR. Rasuna Said, Blok X-5
Kav1-2 Jakarta
Ownership and
: Private, limited liability corporation.
legal form[2.6]
Adaro Indonesia is a subsidiary of PT Adaro Energy
Scale of the Organization [2.8] : Number of Employees: 513
Net sales in 2009 : US $ 2,406,903,867
TOTAL CAPITAL
459
2009
256
2008
1,209
502
107
2007
200
400
1,007
600
Total Equity
In million US$
Oceania
New Zealand
1,029
550
0
1,849
800
Loan with interest
1,000
1,200
1,400
1,600
1,800
2,000
Total Liability
PRODUCTION and SALES VOLUME
42,000
41,000
40,000
39,000
38,000
37,000
36,000
35,000
34,000
33,000
41,080
39,798
40,590
38,524
36,076
36,078
2007
Sales Volume (’000 ton)
2008
2009
Production Volume (’000 ton)
07
Recognitions
in 2009
[2.10]
a. Received the Indonesian CSR Award from the Minister for Social Affairs for the
evaluation period of 2008
1. Awarded the Gold Winner in the Social and Environmental category for the
Integrated Agriculture Program.
2. Awarded First Place in the Social category for the Formal Education Quality
Improvement Program through LP3AP.
3. Awarded Second Place in the Environmental category for the Program of Clean
Water Production by Using Mining Wastewater.
4. Awarded Third Place in the Economy and Environmental category for the
Integrated Agriculture Program.
b. The largest tax payer in 2009 to the Taxation Office for Foreign Capital Investment
c. The largest tax payer in 2009 to the Tanjung Branch Pratama Taxation Office
d. The KSN Award 2009 from the Minister for Social Affairs
1. Awarded the Platinum Winner in the Economy/Partnership category, the Micro
Finance Institution Program. The winning program was the Banua Bauntung
Micro Finance, Paringin Branch.
2. Awarded the Gold Winner in the Social/ Environmental category, the 9-Year
Basic Education Program. The winning program was the Education Quality
Improvement Program through LP3AP adjoining with Adaro Indonesia.
3. Awarded the Silver Winner in the Community Health Program category for the
Mothers, Newborn Babies and Children Health Program.
4. Awarded the Silver Winner in the Economy/Partnership category, the Program
for Farm Community Business Unit. The winning program was the Farm
Group ‘Sahabat’.
e. The PROPER, Green Level, for performances in the periods of 2007-2008 and
2008-2009 from the State Minister for Environment.
f. Recognition from the Directorate General of Mineral, Coal and Geothermal, the
Department of Energy and Mineral Resources
1. The Prominent/Primary Rank, in the category of Mining Environment Monitoring
2. The Prominent/Primary Rank, in the category of Reclamation Management on
Used Mining Site
3. The Prominent/Primary Rank, in the category of Overburden Management
4. The Prominent/Primary Rank, in the category of Supporting Facilities Activity
Management
5. The Prominent/Primary Rank, in the category of Seeding Management
6. The Pratama/Initial Rank, in the category of Mining Safety Management
Right: Several
recognitions were
achieved by Adaro
Indonesia in 2009.
08
“
Received various awards
in social, economic and
environmental aspect
”
PROPER
Peringkat HIJAU,
Kinerja 2008-2009
Kementrian Negara
Lingkungan Hidup
09
The Organization’s
Structure
Presiden Director
Director of Operations
[2.3]
Chief Operating Officer
General Manager Operation
Secretary
Deputy GM Strategic Planning
Coal Hauling
Manager
Strategic
Planning
Manager
Coal Hauling
Supt.
Long Term
Planning Supt.
Haul Road
Maintenance
Supt.
Statutory
Planning &
Statistic Supt.
Road Safety
Supt.
Deputy GM Production
Geotechnical
Manager
Geology &
Exploration
Manager
Business
Improvement
Manager
Paringin Project
Manager
HSE Manager
Production
Manager
Production
Planning
Manager
Mine
Infrastructure
Manager
Geotechnical
Supt.
Geology & QC
Supt.
Bussiness
Improvement
Supt.
Administration
Supt.
Reclamation
Supt.
Central Prod.
Supt.
Short Term
Planning Supt.
PIT Infrastructure
Supt.
Mine Supt.
Environmental
Mgt Supt.
North. Prod.
Supt.
Survey Supt.
Technical Supt.
Compliance,
R & D Supt.
Wara Prod. Supt.
Mine Health &
Safety Supt.
South Prod.
Supt.
Maintenance
Health & Safety
Supt.
10
Operati
PT ADARO INDONESIA
n
Legal Compliance Officer
Legal Representative Officer
Deputy GM Coal Processing
& Barge Loading
Deputy GM Coal Admin &
External Affairs
Sr. Operation &
Maintenance
Manager
ions Supt.
Maintenance
Manager
HSE Supt.
Administration
Supt.
HRGA-IT
Manager
CSR Manager
Land Acquisition
Manager
External
Relations
Manager
HR Supt.
CSR Project
Supt.
Land Acquisition
Supt.
Gov. Rel. Supt.
General Affair
Supt.
CSR Bina
Program Supt.
Bjrn. Rep. Office
Manager
Fin. & Acc.
Manager
Shipping
Manager
Shipping Supt.
Public Media Rel.
Supt.
Maintenance
Supt.
IT Supt.
Maintenance
Planning Supt.
Purchasing &
Warehouse Supt.
11
Our Strategy
“
Adaro Indonesia realizes that coal is an unrenewable natural
resource. Therefore, it needs reasonable and efficient
management and utilization that are beneficial to all
stakeholders, including the surrounding communities of the
mining sites.
”
Vision Statement
To be the leading Indonesian mining and
energy corporate group
Mission Statement [4.8] Adaro Indonesia’s
Values [4.8]
Operating in the mining and energy
sector to:
Satisfy the consumers’ needs.
Improve the employees.
Create a partnership with the
suppliers.
Support the state and community
development.
Improve safety and environment
conservation.
Maximize values for the
shareholders.
Adaro Indonesia’s Values:
1. Focusing on the Consumers
2. QCDS (Quality, Cost, Delivery, Safety)
3. Possesing the characteristics of:
A ttitude
D etermined
A daptive
R esponsive
O pen minded
I ntegrity
B alance
T eam spirit
12
4.
PDCA (Plan Do Check Action)
5.
KISS (Keep It simple Spirit)
6.
MbL (Management by Love)
Since its early establishment, Adaro Indonesia has been committed to being a good
citizen. For this reason, Adaro Indonesia always carries out its activities based on a
caring partnership with all stakeholders, such that all, including local community, can
experience growth together.
Understanding
the Impact
Understanding the
Challenge [1.2]
In order to investigate the impacts of the
company’s operations on local
communities, we have performed a
number of examinations, which were: [1.2,
SO1]:
·
Before entering the community:
feasibility study, Environmental Impact
Assessment (EIA)
The study was initiated by a forming team
whose members were from Adaro
Indonesia as the resource persons and
external consultants as the executors.
While Operating: social mapping
Social mapping was conducted by a
research team that is expert in social and
community aspects. The respondents of
the study were the society within the Ring
1 area or the local community that was
directly affected by the company’s
operations.
When deciding to leave the community
or the post-mining plan: the post-mining
document
A specific examination was also performed
in order to capture the community’s
perception and to figure out the impact
of the 15-year community development
program of Adaro Indonesia. Results of
the study were used as a reference to
design future strategies for community
empowerment.
·
·
·
·
The area of operation covers more
than 50 villages in 6 regencies and 2
provinces.
In line with the increasing production
target from one year to another, the
coverage area and operational impacts
are also expanding.
Limited availability of supporting
facilities for coordinations and program
monitoring and evaluation.
Different goverment policies in
different regions.
The time and target of the corporate
team should be adjusted to those of
the local government (Pemda),
because both have agendas and
programs to be accomplished.
Refering to the
Regulation and the
International Standard
and Initiative [4.12]:
The Decree of the Minister for Energy
and Mineral Resources about the
Occupational Health and Safety in
General Mining (1995), KEPMEN
555.K/26/M.PE/1995
Occupational health and safety
management systems-requirements
18991:2007,
Auditing Technical Guidance for the
Occupational Health and Safety
Management System based on the
Decree of the Minister for Manpower
(Permenaker) No.05/MEN/96
SNI14001 (2005):the Indonesian
National Standard (SNI) on the
environmental management system
ISO 9001 : 2000 on the quality
management system
ISO 14001: ISO 14001: 2004 on the
environmental management system
OHSAS18001: 2007 on the
occupational health and safety
management system
The Millenium Development Goals
(MDGs) as guidance for the
implementation of community
development.
Increasing Performance
To manage the impacts and to address
the previously mentioned challenges,
Adaro Indonesia’s efforts to increase its
performance focus on the following
mission statements:
1. SUPPORTING STATE AND
COMMUNITY DEVELOPMENT
2. PRIORITIZING SAFETY AND
ENVIRONMENTAL CONSERVATION
3. IMPROVING THE EMPLOYEES
13
Supporting State and
Community
Development
This section describes the impacts of Adaro
Indonesia’s operations on the economic
condition of stakeholders and the economic
system at local and national levels.
Community empowerment programs are
evidence of the company’s commitment to
preserving the natural environment and
elevating the state of social economy of the
community in the exploration and postmining period.
14
15
37.31%
Economic Performance
of the total budget for community empowerment programs
in 2009 was allocated to the economic sector
Direct Economic Value [EC1]
Sales
Net Sales (US$)
3.000
2.407
2.500
2.000
1.500
1.618
1.000
1.003
697
500
2005
2006
1.146
2007
2008
2009
in million (US$)
Distributed Direct Economic Value (US$) [EC1]
Operational
Cost
Technical Services Dept
Geology Dept
8.250.650,03
Mining Dept
10.956.430,27
Road & Infrastructure Dept
12.349.748,96
Safety Dept
603.944,43
Enviro Dept
8.394.765,83
Land Acquisition Dept
1.102.987,65
Crushing Dept
30.989.238,69
Shipping Dept
41.462.768,54
Accounting/Finance Dept
187.720,15
Adm Dept
7.386.911,75
External Relation Dept
7.637.048,96
Community Development Dept
3.354.656,53
Banjarmasin Office Representative Dept
TOTAL
Community
Investment
[EC1]
3.780.217,77
232.288,57
136.689.378,13
Adaro Indonesia’s Community Empowerment Budget 2009
332
Economic
6.045
Education
11.437
3.575
Health
Social Culture
Operation Cost
9.263
16
(rate: 1 US$ = Rp 9.300,-)
1-2.5%
Product Benefits [EC9]
Lowest content of dust among other types of
coal produced for the global export market
“
Coal extracted from the mining sites of Adaro Indonesia is
very clean with very low content of sulfur, dust and nitrogen.
Because of its environmentally sound characteristic, this coal
type is globally known as “envirocoal”. Being the most
environment friendly solid waste fuel, envirocoal is also called
“the solid natural gas”.
”
Having the lowest dust
content (only 1-2.5%) compared to
other types of coal extracted and sold in
the global export market, the use of
envirocoal:
• Saves the consumers’ expense due to
the low cost of dust disposal.
• Reduces the deposit inside the furnace
and, hence, increases thermal
efficiency and lessens maintenance
costs.
Coal with a low content
of nitrogen (0.9%) enables:
• Consumers to lower the cost of
reducing the content of nitrogen oxide
in the chimney.
• Consumers to produce more salable
energy and to lower the cost of
electricity production.
With the low content
of sulfur (0.1% only), envirocoal
enables consumers to:
• Fulfill environmental standards.
• Postpone capital expenditure for the
installment of gas desulfurization
equipment in the chimney such that
the operating factory costs can be
reduced (the total cost of installing a
set of desulfurization equipment is up
to 20% of the total capital expenditure
of putting up a new power plant).
Low content of
nitrogen (0.9%) and
sulfur (0.1%)
Lowest content
of dust (1-2.5%)
among other
types of coal
produced for the
global export
market
17
Local Development
Local Suppliers [EC6]
During 2009, Adaro Indonesia initiated
partnerships with 504 local suppliers
domiciled in Kalimantan. Total expenditure
for the local suppliers was up to US$
54,891,814.33.
Local Employment [EC7]
In the employee recruitment system,
Adaro Indonesia gives equal employment
opportunities and prioritizes the local
workforce to fulfill the vacant positions.
Nevertheless, the company recruits nonlocals based on the needs of the
organization.
“
The number of local
employees (with a
composition of 76.22%), which
refers to the number of
Kalimantan native-born
people working in Adaro
Indonesia, is far above the
number of non-locals.
”
Each employee candidate has an equal
right and opportunity to get the job and
to be a part of the company by considering
the abilities and skills that he or she has
and also by results of recruitment testing
conducted by the company.
Comparison between the Number of Local
and Non-local Employees
Comparison between Local & non-Local
Employees by Employment Levels
Employee of December 31, 2009
Employee of December 31, 2009
700*
100.00%
600
90
500
400
300
513
76.22%
391
58.5%
23.78%
122
40
NON LOCAL
TOTAL
*EMPLOYEE (people)
“
61.2%
50
0
LOCAL
11.1%
88.9%
80
60
100
38.8%
70
200
Local employees also fulfill
managerial positions with a
composition of 40% of the
total number of managerial
employees.
”
18
100*
30
41.5%
20
10
0
MANAGEMENT
STAFF
NONSTAFF
*EMPLOYEE (people)
LOCAL %
NON LOCAL%
Community Development [S01]
Managerial Approach
“
The community development
program inidicates the
company’s commitment to
natural environment
conservation and
development of the
community’s state of socialeconomy in the exploration
and post-mining periods.
Hence, the community
development program
includes the community
development plan that
considers the local culture and
potentials and the overall
development goals as well.
”
In line with the company’s mission, the
strategies of Adaro Indonesia in carrying
out the community development program
are:
Internally:
Setting up the CSR Department
Increasing internal coordination
regarding the mining expansion plan
such that potential conflicts can be
predicted and anticipated.
Increasing communication skills in
order to be able to respond to
complaints immediately and to
prioritize a dialogue for a consensus
in decision-making and problemsolving processes.
Externally:
Periodically monitoring the
community’s social condition and its
development.
Carrying out intensive communication
with the community and government
by considering regulations, social
aspects and the normative local culture
or customs.
Adaro Indonesia’s Community Empowerment
Objectives
Increasing the quality of social life and
economy
Minimizing the negative impacts of
operations on the community in the
surrounding mining locations.
Moto
String up love, create partnership, and grow
together with the community.
The Principles of Development
Program
1.
2.
3.
4.
5.
The Location of Community
Empowerment
In line with the coverage areas of mining
operation [2.5], the locations are:
South Kalimantan Province:
1. Tabalong Regency
2. Balangan Regency
3. Hulu Sungai Utara Regency
4. Barito Kuala Regency
Central Kalimantan Province:
1. East Barito Regency
2. South Barito Regency
The Four Pillars of Community
Empowerment
1.
2.
3.
4.
Independent
Continuity
Carefulness
Trusteeship
Mutual benefit
Development of the Economic Sector
Development of the Education Sector
Development of the Health Sector
Development of Socio-Cultural Sector
Training on sewing
skills, a community
empowerment
program, is specially
designed for local
housewives
19
“
THE DEVELOPMENTAL STAGES of the COMMUNITY DEVELOPMENT PROGRAM
On arriving at the current
state, Adaro Indonesia has
been carrying out CSR since
1994. Initially, the company’s
activities largely included
giving donations without
systematic planning. Over
time, Adaro Indonesia has
been developing systematic
and well-planned programs
that put into account
stakeholder interest and
participation in order to
empower the community.
”
Yayasan
Adaro
Bangun
Negeri (YABN)
Forming Team
Local Govt,
Adaro
Local Team
YYSKSI
Program
Kayuh
baimbay
Charity
Forming
Team Local
Govt, Adaro
Local CD
Team YYSKSI
Local Team
YYSKSI LPB
Adaro Pama
LPB Adaro
Pama
Local CD
Team YYS KSI
LP3 Adaro
Pama
LPB Adaro
Pama
Involved
local CD
team
Forming
team
LP3 Adaro
Pama
Program
implemented
by company
1996
1999
2000
PIONEERING
2002
2004
2006
2009
ESTABLISHMENT
2010
IMPROVEMENT
Adaro Indonesia’s community development programs are managed by the CSR
Department, which is led by a Department Head.
PERFORMANCE INDICATOR
PROGRAM
EKONOMY
EDUCATION
HEALTH
Adaro Indonesia has setup clear Intermediate
Objectives and Final
Destination in order to
measure the
successfulness of its
community
empowerment programs
SOCIO-CULTURE
INTERMEDIATE OBJECTIVES
Business unit develops
Education services quality increases
Health service quality increases
Well-implemented socio-cultural program
Program sustainability
Harmonic relationship with the
community
FINAL DESTINATION
INDEPENDENT SOCIETY
THE CRITERIA of INDEPENDENT SOCIETY:
Posses income resources that can sustain the family life with no depency to corporations or government
Posses adequate intellectual capacity to complete with otjer community groups
Posses the ability of sell and community management so as to avaoid dependency to other parties
FRAMEWORK for IMPLEMENTATION
Community empowerment
programs in economic,
education, health, and
socio-cultural sectors are
developed by considering
local potential and
regulations as well as
corporate course of action
20
INDEPENDENT SOCIETY
ECONOMY
EDUCATION
HEALTH
CORPORATE POLICIES
LOCAL REGULATIONS & POTENTIAL
SOCIO-CULTURE
Target Groups:
1. Falling under Priority 1 are the
villages/community groups that are
already or will be directly connected
to and/or affected by the operation
of Adaro Indonesia.
2. Falling under Priority 2 are the
villages/community groups that are
vulnerable to various needs connected
to the operation of Adaro Indonesia.
3. Falling under Priority 3 are the
villages/community groups that have
interests within the related regency
area.
Management System of Community
Development Program
The CSR programs are designed by taking
into account the community participation
in various 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
participative scheme.
The CSR programs are also developed by
regarding the local policies and potentials
that are in line with corporate policies.
Through a dialogue mechanism with the
forming team, the harmonization between
the CSR programs and local government’s
development programs is ensured, such
that there is no overlapping in the
implementation of the programs.
In carrying out such activities, the needs
of the community are also investigated
by performing a need assessment
mechanism in cooperation with top state
universities in Indonesia and by carrying
out a direct constructive dialogue
mechanism between Adaro Indonesia and
the local community. Through the
dialogues, it is expected that the
community’s initiatives can be stimulated
by considering local potentials in the areas
[EC8].
Community that is
or will be directly
connected with
company
operations is our
primary target of
the CSR programs
Results of the assessment and dialogues
are usually used as the basis for designing
the company’s medium-term plan, whose
implementation can be adjusted by
concerning the development progress of
the local community.
Moreover, based on the previously
mentioned assessment mechanism, Adaro
Indonesia coordinates with the local
regency government for the program
implementation. The coordination
mechanism ensures the avoidance of
overlapping between the corporation’s
and government’s programs, which is
published in writing as the annual regent
decree. [EC8].
In addition, Adaro Indonesia always
participates actively in the Discussion on
the Local Development Planning
(Musrenbang) in the six partner regencies.
21
MANAGEMENT SYSTEM of COMMUNITY DEVELOPMENT PROGRAM
PLANNING
VISION/MISSION
ADARO/CD
VILLAGE
DIALOGUE
POLICY CD
LOCAL
POTENTIAL
IMPLEMENTATION
& STRATEGY
MONITORING &
EVALUATION
>
POLICY/ VISION/
MISSION
BUDGET
ALLOCATION
CD
CONCEPT CD
STRATEGIC
PLANNING
SUBDISTRICT
HEAD
CD LOCAL
TEAM
INDIVIDUAL/
COMMUNITY
PROPOSAL
STUDY
RESULTS,
THE EXPERT
CONTINUE
THE
PROGRAM
PROPOSAL
CD
CENTRAL
TEAM
ADARO
Synchronization
with Local
Development
LOCAL GOVT.,
RELATED
DEPARTMENT
FORMATURE
TEAM CD
LIST of
PROPOSED
PROGRAM
APPROVAL
PROGRAM
CD ADAROPEMDA
Program,
Budget,
Objective,
Target
Implementa
tion Team
Monitoring Team
ECONOMY
LPB,
EDUCATION
LP3AP
Related Subdistrict
Head
COMPANY
(CD Central Team)
HEALTH
YKI
(CATARACT)
BPD
SOCIOCULTURE
Contractor/
Consultant
Technical
Corporate Team
Special
Program
Local
Community
Special Team/
AUDITOR
IMPLEMENT
ATION
STRATEGY
Determine Budget & CD Program
for the Next Year
REGENT
MANAGEMENT REVIEW
REPORT
Top management of Adaro reviews the
report properness & program
successfulness, quality, objective, target,
budget realization & planning accordance
MANAGEMENT REVIEW
22
The Aspects of
CD Program
Quality, Objective,
Target, Budget, Problem,
Suggestion for
Improvement
RESULT of
PROGRAM
IMPLEMENTATION
EVALUATION
Quality,
Objective, Target,
Budget, Problem
EVALUATION & REPORTING
CSR IMPLEMENTATION [EC8]
EXAMPLE
ORGANIZER
TYPE
NATURE
COMPANY
Charity, as the
community service
and community
relations
Grant
Scholarship
Seed
Donation
COMMUNITY
Simple projects, which
can be executed by the
community
Empowerment
Empowerment
Grant
Footbridge construction
Village road
River cleanup
INSTITUTION
FORMED by
ADARO
INDONESIA
Long-term and
continuous projects
Empowerment
Sustainability
Independent
Micro Finance Insitution
(LKM)
Development of Micro,
Small and Medium-sized
Enterprises (UMKM)
School quality
THIRD PARTY/
CONTRACTOR
Big projects, which
need special knowledge
and skills
Work Contract
Building
Hospital
Sport center (GOR)
Monitoring and evaluation of the community empowerment program are performed
by:
• The Subdistrict Head
• The Village Representative Body
• The Company Staff
• The External Party
DIRECTION TOWARDS SUSTAINABILITY
CD FUNDS
POST MINING
>
Economic Sector
Micro Financing
Institution (LKM)
> Half of Profits of the
Micro Financing
Institution (LKM)
Micro Financing
Institution (LKM)
• Executing
• Channeling
Micro, Small, and
Medium-sized
Enterprises
(MSMEs)
Productive
Business
Education Sector
Health Sector
Social-Cultural Sector
Target Community
Micro, Small, and
Medium-sized
Enterprises
(MSMEs)
Productive
Business
Education Sector
Health Sector
Social-Cultural Sector
Target Community
23
62
Social and Economic Performance
villages in Balangan Regency, since 1997, have become
the beneficiaries of the development program of the
outstanding rubber plantation.
Economy
Development of the advantaged
rubber tree plantation
Social and Economic Performance
I. ECONOMY
Rubber tree plantations are one of the
local potentials. The development of
rubber tree plantations may contribute
to the economy of the community through
the absorption of productive workforce
and, consequently, this may be a reliable
additional or primary household income.
Economic development is initated by
considering the sectors in which the
regencies can develop their
competitiveness and specialIties. The
empowerment is also carried out wholly
from up to down stream regarding the
independency aspect.
The economic sectors developed by Adaro
Indonesia are:
1. Development of the outstanding
rubber tree plantation
2. Development of the Micro, Small and
Medium-sized Enterprises (SMEs)
3. Development of the Micro Finance
Institution (MFI)
4. Integrated agriculture
5. Other economic development
programs: fishery, husbandry, farming,
and development of potential local
products
6. Village Community Economic
Movement (Gema)
7. Independent Adaro Development
Movement (Gerbang AMAN)
Rubber plantation is
one of Adaro
Indonesia’s
outstanding
programs in order to
realize the
independent
community
Objective
Expanding landmass
Increasing quality
Product diversification that
can add values
Activity
Donate seeds, disinfectants,
and production equipments;
carry out counseling, group
dynamics, cultural training,
post-harvest training, and
quality development through
the rubber fumigation house
management
Location
62 villages in Balangan
Regency (since 1997), 31
villages in Tabalong Regency,
and 16 villages in East Barito
Regency
Accumulated Number of Participants and Rubber Plantation area
Number of participants
24
Area
20
09
20
08
20
07
20
04
20
02
/2
00
3
20
02
20
01
19
99
/2
00
0
19
99
8/
19
99
19
9
19
97
/1
99
8
6,000
5,000
4,000
3,000
2,000
1,000
Number og Groups
Development of the Micro, Small and
Medium-sized Enterprises (SMEs)
“Honey” Small and Medium-sized
Enterprises (SME)
Micro, Small and Medium-sized
Enterprises (SMEs) are the economic
generators that are proven to be
outstandingly durable and adaptable to
the economic crisis. For this reason Micro,
Small and Medium-sized Enterprises have
become the mainstays of local
development and employment creation.
Kabupaten Tabalong adalah salah satu
sentra pemasaran Madu yang sudah cukup
terkenal di Propinsi Kalimantan Selatan.
Objective
To be highly competitive
economic actors through
enterpreneurship
empowerment, productivity
improvement, technology
facilitation, financing and
marketing
Activity
Human resources
development, training,
business coach,
management mentoring,
capital acquisition
mentoring, marketing
assistance and technology
assistance
Partner
Business Development
Institute Adaro-Pama
(Lembaga Pengembangan
Bisnis Adaro-Pama)
Location
Tabalong Regency
Several results of
community
empowerment through
the development of
Micro, Small and
Medium-sized
Enterprises carried out
by Adaro Indonesia
Initial
Condition
Honey has a high water
content
Some honey producers did
not fulfill legal requirements
(i.e. SIUP, HO, BPOM/Dinkes)
for the product
appropriateness standard.
Temporary marketing place,
inability to fulfill demand due
to the lack of capital,
insufficient quality due to the
use of simple production
process
Funding
Grant and revolving fund
Result
Fulfilling business legal
requirements
Meeting the demand of the
honey market
Business unit is legal and
protected by law
Income increases
Becoming the role model of
the honey industry that
produces premium quality
products and has
competitive values
Improving the image of
Tabalong Regency as the
center of the original and
high quality honey bee
producers
Plan
Establishment of marketing
and processing building
Honey processing
technology and business
management training
25
Rp 7.965.427.594,-
was the total amount of funds distributed through
Micro Finance Institution (LKM) in 2009
“Soy Milk” Small and Medium-sized
Enterprises (SME)
Initial
Condition
Lack of legal permit
Inability to meet the market
demand because of
insufficient capital
Funding
Revolving fund through the
Micro Finance Institution
(LKM)
Result
Number of production
increases, able to meet the
market demand
Income of the business
owner increases
Business unit is legal and
protected by law
Quality of the produced soy
milk increases
Plan
Development of Micro Finance
Institution (MFI)
The A Micro Finance Insititution (LKM) is
designed to address the financial needs
of the Micro, Small and Medium-sized
Enterprises (UMKM). Through the
involvement of the Business Development
Institute and the Micro Finance Insititution
(LKM), Adaro Indonesia would like to
develop potential industries, whose raw
materials are provided and owned by the
community.
Monitoring the business
progress and evaluate the
continuity of payment to the
Micro Finance Institution
(LKM)
Business management
training
Goal
To be supporting financing
institutions that can sustain
the economy of local
community in the
surrounding area of
operation of Adaro Indonesia
Objective
Providing capital access to
the Micro, Small and
Medium-sized Enterprises
(UMKM), whose businesses
are viable but not yet
banking-feasible
Facilitating soft loan access
by channeling program to
local community/the Micro,
Small and Medium-sized
Enterprises (UMKM), which
have pioneering and feasible
businesses, in the
surrounding area of
operation of Adaro Indonesia
Type of
Program
Providing loans, teaching the
community to save, business
coaching and book keeping
for clients , consultation and
field mentoring
Commen
cement
The Micro Finance
Institution (LKM)
development for the
economic development of
local community began in
June 2005 and was initiated
through the establishment
of the Micro Finance
Insitution (LKM) Banua
Bauntung, Tanjung Branch.
Partner
PT PNM, the Business
Development Institute (LPB),
Micro, Small and Mediumsized Enterprises (UMKM)
Micro Finance Institution
(LKM) Banua Bauntung
has opened capital access
for Micro, Small and
Medium-sized Enterprises’
operations
Total Funds Disbursed by the Micro Finance Institution (MFI) [EC1]
Rp. 8.522.206.496
5.406 customers
Rp. 7.965.427.594
Rp. 5.220.827.436
5.398 customers
Rp. 6.415.446.689
4.217 customers
5.833 customers
Rp. 1.402.710.057
1.951 customers
2005
2006
2007
2008
2009
Funds Disbursed
26
Location
Tabalong Regency, Balangan
Regency, East Barito Regency,
South Barito Regency, Hulu
Sungai UtaraRegency
Beneficiary Micro, Small and Mediumsized Enterprises operating
in rubber, rattan, palm sugar,
and repair shop businesses
Integrated Agriculture
As a mining company that cares for the
social and natural environment, Adaro
Indonesia always tries to harmonize the
needs for the capacity of natural
environment and the available potentials.
An appropriate interaction among the
above mentioned elements may generate
complementary and synergetic responses,
which can stimulate production efficiency
and strengthen the economy of the
integrated agriculture.
“
Adaro Indonesia pays attention to the integration of livestock
and plantation resources in order to generate maximum
biomass output in particular ecological environment and
socio-economy.
”
Objective
Giving good examples to the local community in managing
integrated agriculture
Creating employment and business opportunity
Initiating cooperation with the related parties as the first phase towards
community partnership
Learning vehicle for the local community in the surrounding operating
area
Activity
Development of cattle breeding, community internship of potential
chicken farmers, development of compost, biourine and biogas,
development of green plant and development of horticulture
Commencement
The integrated agriculture program was commenced in 2006 and
initiated through the procurement of 100-head of Bali cattle
Partner
PT Japfa, PT Fajar Indo Mandiri, PT Bank BRI
Progress
Bali Cattle
Premium/Excellent Cow
Broiler
Fertilizer
Bio Gas
Green Plant
Worker (cattle & cow)
Worker (broiler)
: from 100 up to 190
: 325 cows
: 18.000 broilers/cycle
: 70 sack/day
: 1 Unit
: 38,8 Ha
: 34 persons
: 6 persons
INTEGRATED AGRICULTURE SCHEME
ADARO INDONESIA
JAFPA
PT FAJAR INDO MANDIRI
INTI
Poultry
COMPOST
BIO URINE
Community
Training & Internship
Facilitation with JAPFA
Facilitation with BRI
Compost
INTI
Cattle
Breeeding
Micro Financing
Institution (LKM)
INTI
Livestock
Forage
FARMER GROUP
Horticulture
Plantations
Bio Gas
Community
Receive the steer
Surrender the first calf
Utilization of compost & bio gas
Benefits to Natural Environment
Energy Saving
Reduction of Global Warming
Reduction of the Destruction of
Ozone
Reduction of livestock waste
Reduction of chemical fertilizer
27
Other Economic Development Programs
Other potential businesses in the
surrounding area of the mining operation
of Adaro Indonesia are fishery, husbandry,
farming, and the development of
outstanding local products. The activities
carried out by Adaro Indonesia are:
Fishery:
Considering the characteristics and
potential of rivers and wetlands in South
Kalimantan, the main development areas
of fishery are the fish cage, net and pool.
The activities are:
Providing a grant and loan for the fish
cage fishery business in Suput Village,
which resulted in the increasing
productivity and income
Cultivation of nile tilapia and patin fish
(freshwater catfish) in Tabalong
Regency
Cultivation of patin fish and the
procurement of fishery equipment in
South Barito Regency
Development of fish cage fishery in
Barito Kuala Regency
28
Husbandry:
Development of the cross-breeding
goat farm, Etawa in Islamic boarding
school, Al-Islam in Kambitin Village
Development of the duck farm, Alabio
in Banua Lawas Village, Tabalong
Regency
Development of a cattle farm of the
husbandry groups in Lampihong,
Balangan
Develoment of broiler farms in Dahai
Village and Padang Panjang
Development of a free-range chicken
and broiler farm in Barito Kuala
Regency, in cooperation with the
Husbandry Government Agency in
Barito Kuala. Under this program, a
cow-dung processing community
group has also been established.
Farming:
Development of the “Sumber Rejeki” Farm
Group in Manduin Village, through a series
of grant donations for the HT repairment,
the establishment of the equipment
warehouse, hand tractor and power tracer,
the paddy field formation, and the
demonstration plot (demplot) of the
making of a paddy dike. The results are:
an increase in the harvest quantity, a
reduction in time and costs for land
management and harvesting
“
Other potential businesses in the surrounding area of the
mining operation of Adaro Indonesia are fishery, husbandry,
farming, and development of outstanding local products.
”
Development of the outstanding
local products:
Some of the outstanding local products
developed by Adaro Indonesia are natural
honey in Tabalong Regency, palm sugar
in Balangan Regency and rattan craft in
South Barito Regency. A show room is
currently being built, in cooperation with
the National Craft Board of Balangan
Regency (Dekranasda Balangan), to create
access and to support marketing.
Development of electricity in the
villages:
Electricity in the villages has been
developed in order to stimulate economic
activities of the villagers. Solar cells were
donated to 18 houses in the neighborhood
group (RT) 7 in Wonorejo Village, Juai Subdistrict, Balangan Regency. Eighteen units
of solar cells were given to Gudang Seng
Village, Banua Sub-district, East Barito
Regency.
SID (Survey identification design)
and DED (detailed engineering
design) to handle the flood and to
maximize the paddy field:
The land potential in Lajar, Mundar and
Papuyuan Village is underused because
of flooding. To solve this issue, Adaro
Indonesia, in cooperation with the
Department of Public Works in Balangan
Regency and consultants, is working on a
land utilization assessment.
29
Gerakan Ekonomi Masyarakat Desa (Gema Desa)
Village Community Economic
Movement (Gema)
Adaro Indonesia initiated Village
Community Economic Movement (Gema)
in order to stimulate the economic
development of the village community.
To make the programs effective, Adaro
Indonesia cooperates with the local Islamic
boarding school, non-governmental
organizations (NGOs), youth organizations
and the Military District Command
(KODIM). The programs are classified into:
Gema of the Village of the Islamic
Pupils (Gema Desa Santri)
Gema of the Village of the Islamic Pupils
(Gema Desa Santri), which is carried out
in cooperation with:
The Islamic boarding school, Darul
Mustafa in Masingai I Village, Upau
Sub-district. The activities aim for the
development of horticulture and
husbandry.
The Islamic boarding school, Al Islam
in Kambitin Village. The acitivites focus
on integrated husbandry development.
collective business unit in Bilas Village
and the medium for learning and
performing organizational exercises,
which strengthens the cooperation
and the spirit of mutual cooperation,
and lessens the growth of unfavorable
moneylenders and middlemen.
Gema of the Village of the NGOs
(Desa LSM)
Gema of the Village of the NGOs (Desa
LSM), is a form of CSR concept competition
and, especially for the first place winner,
the competition includes CSR
implementation. The NGO Langsat is the
most recent first place winner, which is
currently developing the indigenous craft
industry in Tabalong. It is expected that
the craft development program can
employ a greater number of young local
workforce.
“
Stimulating economic
development of small
communities in cooperation
with the Islamic boarding
school, non-governmental
organizations (NGOs), youth
organizations and the Military
District Command (KODIM).
”
Gema of the Patriotic Village
(Gema Desa Patriot)
Gema of the Patriotic Village, is a food
security program that is designed in
cooperation with the Military District
Command (KODIM) in Tabalong.
Gema of the Pioneering Village
(Gema Desa Pelopor)
Gema of the Pioneering Village (Gema
Desa Pelopor), aims to give or expand
business opportunities to young pioneers
and cadres in the village.
The revolving soft loan to the fishery
Business Unit ”Makmur Jaya”, which
resulted in an increase in production
quantities and income and the
establishment of a family recreation
area.
The formation of a pre-cooperative in
Bilas Village, which has become the
embryo of a multi-type commerce
cooperative. This program became a
30
Establishment of precooperative provides
the medium for
learning and
organizational
training, enhances
teamwork and spirit
of mutual
cooperation
Independent Adaro Development
Movement (Gerbang Aman)
Adaro Indonesia’s commitment to social
and environmental responsibility includes
efforts to create an independent society
during the post-mining period. In order
to boost the establishment of an
independent society and by considering
the wide operational area covering 61
villages in Ring 1 (top priority) and located
in 6 regencies in 2 provinces, a succesful
role model of independent village that
can be replicated to other villages is
needed.
Criteria for Independent
Village
The leadership of village head takes into account public
aspirations and interests
A harmonic relationship exists among the institutions in
supporting the village developmental processes
The village administration is well-managed and can support
the establishment of outstanding public services
The village has short, medium, and long-term development
schemes
The community groups possess economic business units that
sustain the economic development of an independent society.
Basic needs for the community are available and accessible
Objective
Community development in the surrounding area of the
company towards the development of an independent village.
Harmonic relationship between the company and the
surrounding local community.
Initial condition
The community received donations and this practice generated
a dependency, created demanding characteristics and
consumptive behavior (less or unproductive).
The community was very suspicious of Team Care of the Bogor
Agricultural Institute (Tim Care IPB) as a group that merely
protected Adaro Indonesia’s interests
Initial negative perspective of the community towards Adaro
Indonesia
The community was easily provocated and often scapegoating
other parties, having unrealistic and inproportional attitudes
The mutual assistance as local wisdom was diminishing
Low participation of the community in village development
Low quality and performance of village officers
Low cooperation between community members and
stakeholders
Land resources were not fully and productively utilized
Progress
1. The trust, in which Team Care of the Bogor Agriculture
Institute (Tim Care IPB) and Adaro Indonesia empowers
the community towards the independency already exists.
2. The community has started to realize the needs for future
development and independency.
“
... developing a successful role
model of an independent
village that can be replicated
in other villages
”
31
3. The perception and attitude towards the productivity and
independency have been developing.
4. The synergetic cooperation and partnership among related
parties have been growing.
5. The community has begun to consider participating in village
development.
6. The village heads and officers have realized the need to
increase the quality and service performance.
7. The community has begun to join the productive economic
development program that is potentially sustainable (as
the institutionalization concerned)
8. Productive economic groups have been established and
institutionalized
9. The village asset management team was created
Partner
Team Care of the Bogor Agricultural Institute (Tim Care IPB)
Location
Dahai Village and Padang Panjang Village
Communities have
started to realize the
need for future
development and
independency.
32
Social and Economic Performance
Education
Social Sosial
and Economic
Performance
Kinerja
dan Ekonomi
II. EDUCATION
A program on the improvement of
teachers’ quality and school
management
Teacher Training
The education program was initiated to
improve the human resource quality
through educational, moral and religious
values development by considering the
local potential. Adaro Indonesia was called
to get involved in developing education
because the company realizes that
education is the key factor for local
development.
Before formulating the program, an
assessment of educational aspects in the
area is usually conducted as the basis for
the program design.
The educational program consists of:
1. A program on the improvement of
teachers’ quality and school
management towards an equal quality
of local education to that of the
developed regions.
2. Bookmobiles, to fulfill the increasing
reading interest of the pupils.
3. A scholarship program, which can
stimulate educational achievement,
for students from low-income families
and outstanding students.
4. An improvement and procurement of
educational facilities.
This is initiated through a series of training
and workshops for the teachers, school
principals and observers in Tabalong
Regency (142 schools), Balangan Regency
(22 schools), and East Barito Regency (13
schools).
Up to 2009, the number of teachers and
school principals joining the training
program has been:
Number of School Training Participants
(person)
5500
4359
4500
4000
3871
3500
3000
2729
2500
2000
1500
1000
500
1142
527
488
615
0
2006
2007
2008
2009
accumulated number of participants
teacher, school head, supervisor
Partner
The Institute of Education’s Potential Development Adaro – Pama (LP3AP)
Result
The improvement of:
Insights into educational development (35%)
Teaching skills (25%)
Motivation to be an outstanding teacher (34%)
Responsibility for the accomplishment of a lecturer’s duties (16%)
Belief to guide the pupils successfully (42%)
The spirit to develop teaching ability (24%)
Ability to use the presentation media and teaching presentation tools
appropriately (32%)
Self-confidence (26%)
Teaching spirit (30%)
Creativity and innovation (30%)
The needs for the quality development training (29%)
33
Pilot Schools
• Objective: to become benchmark
schools in the development of
educational quality in the surrounding
areas of operation of Adaro Indonesia.
• Target: to become high quality schools
in terms of educational quality,
teaching-learning process and school
management by the year 2012.
Development of Islamic School
(Madrasah)
• The purpose of the development’s
program is to empower the Islamic
schools towards independent
institutions that can generate and
manage funds on their own.
• Partner: The State Institute of Islamic
Religion in Banjarmasin
The Archipelago Teacher Conference
For the last three years Adaro Indonesia
has been supporting 25 teachers in joining
the Archipelago Teacher Conference in
order to give insights and opportunities
to acquire new knowledge for the teachers
in the surrounding area of the company’s
operation.
• Number of pilot schools: 3 elementary
schools, 3 junior high schools and 2
senior high schools are developed in
Tabalong Regency (South Kalimantan)
and East Barito (Central Kalimantan)
• The activities conducted in 2009 were:
Trainings and workshops for all
teachers in the schools, which aimed
at the development of knowledge and
learning-teaching process.
Formulation of the educational quality
standard through the involvement of
teachers and school principals and by
considering the culture of the schools
Providing schools with the
Management Information System for
Educational Institution as a parameter
of a pilot school.
Empowering school principals towards
high competencies, including in
designing and implementing the
quality management system for
schools such that the schools would
appropriately possess the vision,
mission, strategy, program, standard
and procedure, and a quality control
to ensure a high quality of graduates.
Empowering pupils towards high
learning skills, such as memorizing,
mind mapping, fast reading and
resume writing.
Partner: The Institute of Educational
Potential Development Adaro – Pama
(LP3AP)
34
“
...to improve the human
resource quality through
educational, moral and
religious values development
...
”
Mobile Library
Scholarship Program
• In order to stimulate the learning and
reading spirit of the pupils and the
community at large, Adaro Indonesia
through LP3AP launched a mobile
library on National Education Day,
May 2, 2006.
• Scholarships have been given to
elementary, junior high school, senior
high school pupils and undergraduate
students since 2000 in the 5 regencies
of Tabalong, Balangan, East Barito,
South Barito, and Barito Kuala
• Three vehicles were designed as
mobile libraries to serve Balangan,
Tabalong and East Barito Regency
• Objective: to support the
government’s program in developing
human resources’ quality and to
increase the motivation of pupils to
be achievers.
• Over the years, the size of the book
collection has increased up to 15,698
copies and about 5,000 titles, including
textbooks, scientific books, fairy tale
books, and life skill books, such as
books on rubber tree plantation,
farming and fishery.
• The average number of books
borrowed from the mobile libraries is
201 copies per day or 1,207 per week.
• Partner: The Institute of Educational
Potential Development Adaro – Pama
(LP3AP).
The number of scholarships based on the
school level and area:
Number of Grantees of Adaro Indonesia’s Scholarship Program
2500
S1, 167
2000
SLTA, 264
S1, 91
SLTA, 180
1500
1000
S1, 53
SLTA, 100
S1, 44
SLTA, 118
S1, 38
SLTA, 135
SLTP, 197
SLTP, 188
SLTP, 183
SLTP, 430
SLTP, 466
500
SD, 729
0
2005
S1
SD, 701
SD, 689
2006
SD
2007
SMP
Adaro Indonesia, in cooperation with the
local government of Balangan Subdistrict, the local branch of the National
Education Office and the local
educational institution, empowers pupils
in preparation for the National Final
Examinations (UAN).
SD, 1037
2008
SD, 1436
2009
SMA
Top: Scholarships have
been provided for
elementary, junior high
school, senior high school
and undergraduate
students since 2000 in 5
regencies: Tabalong,
Balangan, East Barito,
South Barito, and Barito
Kuala Regency.
35
TAHUN
TABALONG
SD
SLTP
SLTA
S1
BALANGAN
SD
SLTP
SLTA
S1
BARSEL
SD
BARTIM
BATOLA
SD SLTP SLTA S1
JUMLAH
SLTA
S1
80
12
6
220
18
12
60
12
6
360
42
24
0
2001
132
36
6
186
30
18
68
16
4
386
82
28
0
2002
182
40
15
204
30
18
138
30
18
0
2003
216
33
6
170
42
18
48
30
6
100
15
12
2004
214
36
4
15
170
42
28
13
48
30
12
114
15
15
5
2005
234
78
40
25
222
42
35
19 121
59
13
152
18
18
9
2006
195
65
40
25
228
49
35
19 119
50
19
147
24
24
2007
277 107
60
23
228
42
36
15
2008
350 182
70
23
384
80
48
19
2009
376 194
70
50
384
77
40
45 120
3
SD
SLTP SLTA S1
2000
20
SLTP SLTA S1
SD
SLTP
524
100
51
534
120
42
0
546
123
59
33
729
197
106
53
669
188
118
44
176
27
36
701
183
135
38
45 18
235
45
17 21
90 5 1037
456
180
91
60 124 33
456
99
30 33 120 60 122 6 1436
430
264 167
7
0 159
68 32
2010
JUMLAH 2.256 783 317 166 2.376 452 288 130 742 453 250
- 1.380 243 152 14
-
Bukti nyata keberhasilan program
bimbingan belajar:
-
- - 4.469 1.931 1.007 426
“
We additionally award the
second and first place
among senior and junior
high school students in
South Borneo Province .
”
Number of Participants of the Study Tutoring
Program
2.230
2500
Dari hasil ujian akhir nasional Tahun
ajaran 2007/2008, Kabupaten Balangan
berhasil mendapat peringkat 3 Tingkat
SLTA dan peringkat 2 untuk tingkat
SLTP se-Kalimantan Selatan.
Pada tahun ajaran 2008/2009, prestasi
siswa meningkat. Kabupaten Balangan
meraih Peringkat ke II untuk SLTA dan
Peringkat I untuk SLTP se-Kalimantan
Selatan.
2000
1500
1000
2.002
500
1.877
0
2007/2008
2008/2009
2009/2010
Accumulated Number of Participants
Passing Percentage of Pupils in
the Try Out 2009
84%
85%
Try Out 4
68%
68%
Try Out 3
Try Out 2
Adaro Indonesia also
organizes an exam
simulation (the try out),
for students in Balangan
Regency, which has
proven effective in
improving students’
capacity to pass the
exam
36
Try Out 1
27%
1%
4%
0%
SLTA
36%
10%
20%
SLTP
30%
40%
50%
60%
70%
80% 90%
Source: Primagama in Balangan
Improvement and Procurement
of Educational Facilities
Infrastructure [EC8]:
• Putting up a clean water treatment in
the Elementary and Junior High
Schools Banua Lima in East Barito.
• Building a gate and rest rooms in the
Elementary School Plus Murung
Pudak.
• Building a physics and chemistry
laboratory in the Junior High School
Plus Murung Mudak.
• Fixing the building and facilities of
the Elementary School Laburan.
National Movement of Foster Parents
(GN-OTA)
In cooperation with the taskgroup of GNOTA in each regency, Adaro Indonesia
donates clothes and school equipment to
pupils from low-income families.
Adaro Indonesia’s commitment to
educational development resulted in the
following achievements:
1. In 2009, Adaro Indonesia was
awarded the Gold Winner of KSN
Awards in the Social/Natural
Environment category, the Program
for 9 Years of Basic Education. The
winning program was the Quality
Development on Education through
LP3AP adjoining with Adaro
Indonesia.
2. In the CSR Awards 2009, the Quality
Development Program on Formal
Education through LP3AP was
recognized First Place in the Social
category.
School bag donation
are very valuable and
beneficial for
elementary students.
School Bag Donation
Every year, about 3000 school bags are
distributed to new elementary school
pupils in the neighboring area of operation
of Adaro Indonesia.
Development of Higher Educational
Institutions
A college or university is a stimulating
institution and a change agent for
development. For this reason, Adaro
Indonesia gives a contribution to local
colleges, one of which is the College of
Administration Tabalong. The contribution
is given in the form of the improvement
of facilities and assistance to new students.
Middle: School bags
are distributed in the
Walangkir Stateowned Elementary
School, Tanta –
Tabalong
Bottom: Students of
Banyu Tanjun Stateowned Elementary
School, Tanjung –
Tabalong, show their
joy and happiness
37
3.608
Social and Economic Performance
patients from cataract through cataract surgeries
fully recovered.
Health
Accumulated number of cataract patients
Social and
Economic
Performance
Kinerja
Sosial
dan Ekonomi
4000*
III. HEALTH
The health program of Adaro Indonesia
aims to increase the health level of society.
Cataract Screening and Surgery
Recognizing that many local people suffer
from cataract, Adaro Indonesia in
cooperation with the Indonesian
Humanitarian Foundation (Yayasan
Kemanusian Indonesia) has been
organizing cataract surgeries for the
community since May 2003 in 6 regencies
in the surrounding area of Adaro
Indonesia. The regencies are Tabalong,
Balangan, Hulu Sungai Utara, East Barito,
South Barito, and Barito Kuala.
The objectve of the program is to reduce
the number of cataract patients in the
neighboring area of the operational
location of Adaro Indonesia and the
patients’ dependency ratio. Until 2009,
Adaro Indonesia has provided medical
treatment for 3,608 cataract patients
The cataract surgeries are performed in a
modified eye-clinic and surgeon mobile
in order to make it reachable for patients
in remote areas.
38
3420
3500
The objectve of the
program is to reduce the
number of cataract
patients in the
neighboring area of the
operational location of
Adaro Indonesia and the
patients’ dependency
ratio. Until 2009, Adaro
Indonesia has provided
medical treatment for
3,608 cataract patients
3000
2534
2500
2000
1500
1439
3608
3067
1933
1000
500
0
623
2003
2004
Accumulated Patient
2005
2006
2007
2008
2009
*person
Improvement of health service
quality, promote clean and healthy
lifestyles.
KIBLLA (Health of Mother,
Newborn Infant and Child) Village
In 2004, the infant mortality and maternal
mortality rate in South Kalimantan were
60 per one thousand and 126 per one
hundred thousand, respectively. The
primary causes of the high mortality rates
were asphyxia and hypothermia.
Partner
The Alliance of White
Ribbon Indonesia (APPI)
Objective
To increase public awareness
for the efforts needed to
protect and save mothers,
newborn infants and
children below 5 years old
from fatalities.
To create a wide network of
organizations, institutions or
individuals who care for the
health of women in
pregnancy, prenatal and
childbirth, as well as the
wellbeing of newborn infants
and children below 5 years
old.
To facilitate the development
of health services, to
campaign for clean and
healthy living.
To support the government’s
programs on health and
humanity.
Types of
activities
Community counseling for
clean and healthy living
behavior, especially during
pregnancy and prenatal, until
childbirth such that babies
and children below 5 years
old can maintain good
health.
To carry out the economic
development for women
and to increase their role in
village development. For
example, mothers are
encouraged to possess the
ability to increase their
economy by growing and
producing vegetables or
cultivating oyster
mushrooms and celery. It is
expected that the output of
the planting can fulfill the
daily needs of nutrition and
can be sold to provide
additional income for the
families. In the future, the
output of the vegetable farm
may contribute to the
valuable nutritious food in
the Center for Pre and
Postnatal Health Care for
Women and Children
(Posyandu).
Providing scholarships for
midwife training for local
teenagers; it is expected that
they would want to return to
their villages and develop the
local health. This idea is
supported by the Health
Department in both Tabalong
and Balangan Regency.
Developing health
infrastructure, which is the
Community Health Center
(Poskedes), and health
services in Dahai, South
Kalimantan. Another role
model village under the
KIBBLA program is Warukin
Village. In 2009, the number
of KIBBLA villages increased
in Balangan Regency.
The villages chosen for
KIBBLA villages are those in
isolated areas with very
limited availability of health
facilities.
Moreover, Adaro Indonesia
provides a Maternity Social
Fund (Dasolin). Initially,
this was a loan program for
pregnant mothers who
needed money to pay for
birthing expenses. Currently,
low-income families are
welcome to apply for the
loan.
“
...to protect and save
mothers, newborn infants
and children below 5 years
old from fatalities.
”
Health Community
Center (Poskedes),
developed health
infrastructure and
health services to
improve the health of
mothers, newborn
infants and children
below 5 years old
39
20
The Water Treatment Plant produces 20 litres of
clean water per second.
Clean Water Provision
Starting from the concept of 3R (Reduce,
Reuse, & Recycle), Adaro Indonesia uses
and processes the water resource from
the mining operation into clean water that
is valuable for the community.
Adaro Indonesia installed a Water
Treatment Plant (WTP) T300. It is a water
processing system, which alters waste
water from the mining operation into
consumable clean water that meets the
quality standard. [EC8]
WTP T-300 can produce and supply clean
water at 20 liters per second or 72 m3 per
hour by using two clean water tanks with
the capacities of 450 m3 and 72 m3.
Currently, the output of WTP T-300 is used
by the employees of Adaro Indonesia, the
partners and several villages in Dahai and
Padang Panjang by using water tank trucks
for distribution.
In the near future, Adaro Indonesia will
set up a clean water distribution system
by using pipes to Dahai and Padang
Panjang Village. The piping system is now
under construction.
“
...a water processing system,
which alters waste water from
the mining operation into
consumable clean water that
meets the quality standard.
”
40
Adaro Indonesia put up
the Water Treatment
Plant (WTP) T300, which
is a water processing
system that alters the
waste water from
mining operation into
consumable clean water
that meets the quality
standard
109
Social and Economic Performance
religious and public facilities were
funded in 2009.
Socio-Culture
KinerjaSosial
Sosialdan
danEkonomi
Ekonomi
Kinerja
IV. BIDANG SOSIAL BUDAYA
Number of Facilities for Socio Culture
Development
140*
120
Socio-cultural activities aim to enable local
people to actualize themselves in religious,
sportmanship, art and cultural aspects.
In the context of community development,
the social capital and local wisdom are
the keys of sustainable empowerment.
Since the Indonesian people possess the
mutual assistance principle as their social
capital, community participation is one
thing that should be considered.
57
100
80
60
3
58
40
20
7
28
2
11
0
2007
2008
2009
*unit
mosque
In order to realize the purpose of creating
an independent society through
sustainable community development,
Adaro Indonesia carries out socio-cultural
programs through the exploration of local
wisdom and the generation of social
capital by implementing the CSR programs.
Types of activities:
1. Religious development: assistance for
renovating and developing houses of
worship [EC8], and the donation for
holy days and religious activities.
2. Sports development: providing sports
facilities and funds for sport
competitions, such as Adaro Volleyball
Cup, Adaro Tennis Cup, and Adaro
Football Cup.
3. Art and cultural development:
expanding and promoting the potential
local arts and culture to larger
exposure at the regional, provincial,
national and international levels. Some
of them are the local arts of Upau,
Warukin and Halong, Islamic arts, and
marching bands from Tanjung,
Balangan and Batola.
74
chruch
public facility
Realizing the purpose
of creating an
independent society
through sustainable
community
development
Locations where In-kind Contributions for Socio-cultural Sector were distributed
140*
120
100
80
60
40
20
0
Tabalong
Balangan
Bartim
Barsel
HSU
Batola
Total
*unit
2007
2008
2009
41
Rp 4.110.600.000,-
Public Facilities [EC8]
total budget for putting up clean water
piping system
The following is the list of public facilities constructed by Adaro Indonesia as a
Kinerja
Sosial
dan Ekonomi
part
of the
community
empowerment program:
THE LIST of DEVELOPED ENFRASTRUCTURES in THE CSR PROGRAM of ADARO INDONESIA in 2009 [EC8]
No.
Name of Program
Location
Explanation
1.
Establishment of Balangan Stadium, Phase I
Balangan
Establishment of running track and drainage system are accomplished. The program
is carried out gradually.
2.
Establishment of Sumber Rejeki Sport Facilities
Balangan
Bandminton and volley ball court.
3.
Laboratorium of Murung Pudak Junior High School Plus
Tabalong
Physics and Biology Laboratorium.
Tabalong
-
Tabalong
-
(SMP Plus)
4.
Toilet and Fences of Murung Pudak Junior High School Plus
(SMP Plus)
5.
Establishment of Kindergarten and Reading Center and
Toilet Rehabilitation of Laburan Elementary School (SD)
6.
Kindergarten Pirsus
Balangan
-
7.
Clean Water Piping System
Dahai-Padang Panjang
The program is carried out gradually with the target of completion in the year 2010.
8.
Padang Panjang Village’s Community Hall
Tabalong
Development is ongoing.
9.
Dahai Siraturrahman Mosque
Tabalong
In-kind Contribution.
10.
Poly Clinic for Medical Specialists and Emergency Unit
East Barito
Development is ongoing.
Central Borneo
Building and equipment. Physical development is ongoing.
Ambahai, HSU
-
The total budget is Rp.4.110.600.000,-
(UGD) of Tamiyang Layang Provincial General Hospital
11.
Emergency Unit (UGD) of Hospital Dorys Sylvanus
Plangkaraya and its Facilities
12.
Establishment of Library and Student’s Health Unit (UKS)
of Harapan Mulia Kindergarten
13.
Establishment of Toilet of Al-Madina Kindergarten
Paringin, HSU
-
14.
Showroom for Outstanding Local Products
Balangan
Development is ongoing.
Several public
facilities founded
by Adaro
Indonesia
42
Indirect Economic Impacts [EC9]
The existence and growth of new businesses in the surrounding area of operation of
Adaro Indonesia indicate indirect economic impacts of the presence of the company.
A research on this issue was conducted, especially in Tanjung, the capital of Tabalong
Regency.
The study showed that each new business establishment could create new employment
for two local people and the types of businesses that could create high employment
were capital intensive businesses, such as motorcycle dealerships, electronic shops
and auto-electronic shops.
The study on the types of businesses, sales turnover and profits of the non-mining
industry sectors, which were economically related to the existence of Adaro Indonesia,
was conducted in 2007 and showed the following results:
Non-mining
Sector
Type of Business
Service Sector
Hotel, Motel, Boarding Room
Hairdresser
Parking Lot for Motorcycles
Small Restaurant
Car Wash
Dynamo Repair
Car Accessories & Variation
Car Garage
Games Center for Children
Water Tank Truck Supplier
Electronic Shop
Mining Safety Equipment Shop
Drug Store
Technical Tools Store
Groceries Small shop
Construction Material Store
Home Appliances
Office Supply
Optic/ Eye Clinic
Tailor
Pastry
Motorcycle Dealer
Furniture Store
Shoe Shop
cellphone Load & Accessories
Fish Cultivation
Trading Sector
Fishery Sector
Weekly Sales
Weekly Profits
43.165.000
3.350.000
700.000
12.000.000
896.000
2.500.000
73.800.000
2.100.000
3.500.000
1.215.000
162.500.000
3.750.000
300.000
7.000.000
27.100.000
60.000.000
29.375.000
10.000.000
2.500.000
350.000
1.700.000
400.000.000
12.500.000
1.750.000
200.000
200.000
22.605.000
1.400.000
700.000
3.600.000
436.000
875.000
5.200.000
700.000
200.000
60.000.000
36.800.000
3.750.000
280.000
210.000
13.340.000
3.000.000
3.825.000
2.000.000
800.000
35.000
100.000
67.500.000
3.125.000
210.000
125.000
200.000
(Rupiah)
(Rupiah)
“
Existence and growth
of new businesses in
surrounding areas of
operation of Adaro
Indonesia creates role
models in the economic
sector towards an
independent society.
”
Other impacts on the community: the creation of role models in various aspects of economy,
education, health and socio-culture toward an independent society.
Impacts on the company: the creation of a harmonic relationship between the company,
community and government, the improvement of the corporate image, and the assurance
of operational continuity.
Impacts on the government: the local development programs can be realized, especially in
the economic, educational, health and socio-cultural aspects.
43
Prioritizing Safety
and
Environmental
Conservation
Adaro Indonesia develops and implements an
integrated management system called the
Adaro Safety, Environmental, Production (ASEP)
Management System.
Hydroseeding revegetation
as a rehabilitation effort
on the former mining site.
44
45
Protecting Occupational Health and Safety
Adaro Indonesia
provides personal
protective equipment,
uniforms and safety
equipment to all
employees for free
Protecting Occupational Health
and Safety
By referring to the regulations and
standards, especially ISO 14001 and
OHSAS 18000, Adaro Indonesia develops
and implements an integrated
management system called Adaro Safety,
Environmental, Production (ASEP)
Management System. The ASEP
Management System is an essential
element for the employees in increasing
their productivity and company’s
production and in managing the natural
environment regarding the applied
Occupational Health and Safety (K3) and
Natural Environment regulations.
SHE
DIVISION
MINE & HAUL
DIVISION
Management Involvement,
Planning & Leadership
Recruitment, Selection,
Placement & training
Risk Management,
Emergency Crisis Preparedness &
Contigency Planning
Inspection, Audits, review,
Evaluation & Remedial Actions
Communication &
Behaviour Management
Incident Reporting,
Investigation & Analysis
HRGA
DIVISION
CSR &
Off The Job SHE
Operational &
Process Safety
CONTRACTOR
46
BARGE &
LOADING
DIVISION
EXT REL
DIVISION
The company is responsible for any
incidents related to the occupational
health and safety, which is indicated and
written in the Collective Labor Agreement
(PKB), [LA9], as the following:
• Health issues: Adaro Indonesia
provides and takes care of the medical
facilities, routine health check-up,
outpatient, hospitalization, surgery,
birth, hearing aid, and the Worker’s
Social Security Program (Jamsostek)
covering a fatality, accident in the
workplace and retirement.
• Safety issues: Adaro Indonesia
provides personal protective
equipment to all employees, uniforms,
safety equipment to employees at
particular high-risk workplaces, and
safe transportation according to the
safety standard.
Counseling to the employees and their
families is continuously conducted as an
effort to prevent and control the risk of
dangerous diseases [LA8]:
• Health counseling is carried out by the
company’s medical doctor regularly.
• Medication for employees suffering
from dangerous diseases is carried out
continuously by the company’s
medical doctor.
Regarding its achievement in protecting the occupational health and safety, Adaro
Indonesia received an appreciation on the safety from the Ministry of Mining and
mineral Resources in 2001 up to 2005 and in 2009.
Below is the number of accident cases of Adaro Indonesia and its contractors in 2009
[LA7].
Number of Accidents in Workplace
25*
80
75
70
22
20
60
40
12
40
10
30
7
29
5
6
20
20
5
5
0
ADARO
*) Amount
One of the
occupational safety
signs
50
15
PAMA
BUMA
SIS
RA
10
0
ADARO-Sub*))
*)) Corporate
Minor Injury
Lost Time Injury
Fatal
Serious
In order to mitigate potential risks, Adaro
Indonesia employs basic values for
addressing potential risks:
• The potential risks mitigation has to
become a liability
• The potential risks mitigation has to
become a need
• The potential risks mitigation has to
become a culture
Property damage,
Environmental
Contaminated
Source: SHE
Report 2009
Adaro Indonesia applies a high level of
discipline to all employees, especially
those who directly work in the mining
sites (those whose work is closely related
to the occupational safety issues). In order
to ensure high discipline behavior, Adaro
Indonesia carries out the following efforts:
• Inviting a psychologist to carry out
counseling for employees,
• Reminding the importance of work
discipline, especially in connection to
occupational safety through various
ways, one of which is the socialization
of the President Message.
• Induction of all parties (guests and
employees) when entering the mining
sites.
• Socialization and evaluation of the
accidents occurred in the mining sites.
• Setting up and managing the Discipline
Committee, in which its members are
the General Operation Manager,
Division Heads, Department Heads,
Human Resources Section, and the
OPA Labor Union.
Personal
protective
equipment for
employees in
the workplace
47
Conserving the Environment
6. Reduction in the use of paper by
reusing scrap papers for printing and
using the internal network for
communication. Even though there
are no documentations on the
reduction of paper quantity used and
reused, this effort has given benefits
to the company.
Initiative to Reduce the Impact on
the Environment [EN26]
Adaro Indonesia has initiated to reduce
impacts on the natural environment from
the process of operations. Some of the
activities are:
1. Reduction of greenhouse gases by
lessening the use of diesel fuel,
through:
a. The use of solar panels for running
several supporting equipment for
the operation
b. The use of used oil as the mixture
material of explosives
2. Reduction of air blast noise by using
the stone material split and plug
system that can produce a noise level
at 90 dB (A). This noise level is below
the quality standard/normal limit of
110 dB (A) (refer to the Indonesian
National Standard SNI.7570-2010)
7. Fixing the design of the waste dump
by changing the slope from 20° to 26°
in order to prevent errosion. The
change was conducted after a study
on the errosion in the dump site was
carried out by the geotech section.
8. Minimizing the impact of
transportation activities through
appropriate maintenance of vehicles,
reduction of dust and coal spills, and
controlling the noise level.
Routine check on
the solar panel is
carried out by field
staff of Adaro
Indonesia.
3. Reduction of vibration: by creating a
line drill and air deck in the explosion
area. The level of vibration can be
reduced from 3 mm/s down to 2,5
mm/s. This vibration level is below the
quality standard/normal limit of 3
mm/s (refer to the Indonesia National
Standard SIN.7571-2010).
4. Reducing leftover food waste by
converting it into compost, in
cooperation with Hokkaido and
Lambung Mangkurat University since
2007.
5. Since the end of 2009, the mud slayer
has been used to reduce the number
of consumable drilling materials for
the drilling process. Some of the
materials are the drill mud, benthonic,
and stargel.
48
Adaro Indonesia is
responsible to
reduce the impact
of operation on the
natural
environment, such
as dust from
vehicles and organic
waste.
The initiatives to reduce the impacts on the natural environment are
explained below.
Energy [EN3]
Adaro Indonesia’s operations use the direct
energy from:
Non-renewable Energy: Diesel Fuel
Diesel fuel is provided by Adaro Indonesia
to be used by the contractors for the
production process, including blasting. In
2009, the use of this non-renewable direct
energy source increased by 49% due to
the rise in production volume.
The use of non-renewable direct energy
source (diesel fuel)
Amount of solar energy production, which is
equal to the amount of diesel fuel energy along
2008-2009
(x 1.000 L)
(x 1.000 GJ)
450.000
16.000
400.000
14.460 14.000
350.000
12.000
300.000
250.000
200.000
396.644
9.696
265.968
10.000
8.000
150.000
6.000
100.000
4.000
50.000
2.000
0
2008
Liter
2009
Gigajoule (GJ)
Renewable energy: Solar Energy
Solar energy is used to replace diesel fuel
for generating electricity to be used for
running supporting equipment in the
operation. The next figure describes the
amount of solar energy production, which
is equal to the amount of diesel fuel
energy reduction:
The Use of Solar Energy Source that is Equal to
the Reduction of Diesel Fuel Energy in 2008-2009
(x100 GJ)
(x1000 L)
40
35
30
25
20
15
10
5
14
12
34
7
20
2008
Liter
2009
Gigajoule (GJ)
12
10
8
6
4
2
Total Direct Energy
Total direct energy (the sum of nonrenewable and renewable energy)
consumed by Adaro Indonesia is:
Total Direct Energy Consumed
(x 1.000 L)
(x 1.000 GJ)
450.000
400.000
350.000
300.000
250.000
200.000
150.000
100.000
50.000
16.000
14.461 14.000
12.000
396.664
10.000
8.000
6.000
4.000
9.697
266.001
2.000
2008
Liter
2009
Gigajoule (GJ)
49
Energy Efficiency and the Use of
Renewable Energy [EN5]
The product of Adaro Indonesia is an
energy-efficient coal due to its high
burning efficiency level (about 99.7%)
Adaro Indonesia has been performing
various efforts to reduce its energy
consumption, which are:
1. Using solar energy by installing solar
cell panels that produce electricity to
be used for running equipment which
support:
a. Survey activities: the solar energy
source is used by the AWS
(Automatic Weather Station) in two
different locations, the RTK GPS
Radio repeater in four locations
and the field office in one location.
There are no documentations yet
regarding the use of energy for the
equipment in all these locations.
b. Mining operations: some of the
equipment using solar energy are
the slope stability monitoring
equipment, Pama repeater T300,
UT view point communication
equipment, SIS repeater and
transmitter.
The energy conversion from diesel fuel
to solar cell energy is carried out
gradually. The daily savings of diesel
fuel as an energy source in 2008-2009
due to the energy conversion is shown
as follows:
Diesel fuel daily savings due to solar cell energy
subsitution
100
80
60
92
40
55
20
2008
Liter/day
50
2009
The yearly diesel fuel savings due to the
solar energy substitution (assuming that
the equipment is used 365 days in a year)
is explained below:
Diesel fuel energy savings as the source of
electricity
40
35
30
25
20
15
10
5
(x100 GJ)
14
12
34
7
20
2008
Liter
2009
Gigajoule (GJ)
12
10
8
6
4
2
2. Reduction in diesel fuel consumption
by replacing it with used oil.
Adaro Indonesia is also able to reduce
its diesel fuel consumption for
detonation activities by using used oil.
Initally, diesel fuel was used as the
mixture of Ammonium Nitrate (AN) of
the ANFO explosive material. With the
agreement of the State Ministry of
Natural Environment of the Republic
of Indonesia, the diesel fuel can be
replaced by used oil at 25%
substitution level (2008-2009), and
with the Ministerial Decree of the State
Minister for Natural Environment
No.20 in 2010, the use of diesel fuel
was reduced to 50% quantity. The
utilization of used oil can save the use
of diesel fuel up to 50% quantity
without lessening the explosion
quality.
3. Fuel savings by turning off the engines
when idling for a long time. There is
no data for the savings because there
is no measurement yet.
Restored Biodiversity and Habitat
There is no conservation area, or, location
that has a high biodiversity and is classified
as a protected habitat or area in the
35,800.80 Ha area covered in the Coal
Contract of Work (PKP2B) of Adaro
Indonesia [EN11].
However, Adaro Indonesia gives
contributions through reforestation and
progressively manages and monitors the
natural environment. The natural
environmental management and
monitoring is conducted based on the
Environmental Impact Assessment (EIA),
which is approved by the government
[EN14].
The existence and development of the
flora and fauna, as an indicator of the
impact on natural environment, would
always be monitored. The impact could
be resulted fom the land clearing activities
and exist up to the end of exploration.
Then, a rehabilition would be
implemented at the former mining sites
[EN12].
Monitoring the flora and fauna in the
natural and affected areas is conducted
once a year. The results of previous
monitoring showed that there is no
endangered species affected by the mining
operations.
The condition of biodiversity of each
mining site is [EN11]:
1. Tutupan Mining Site
Ecological value in this location is good
enough and is indicated by the formation
of vegetation in the secondary forest and
mixed gardens, and also by the diversity
of mammals, birds and reptiles found in
the location. The vegetation analysis and
the species matrix in the beginning of 2010
in Tutupan area, the natural vegetation
formation and mixed gardens:
1) The secondary forest in the
observation area at various
vegetation levels, especially at the
under-canopy level and shrub layer,
is classified as having low and verylow biodiversity.
2) The fauna diversity relatively
follows the diversity of the plants,
except in special cases such as the
shrub layer which is the habitat of
mammals and birds. In case with
a poor diversity of shrub
vegetation; and a very low diversity
of mature trees, sapling and
seedling levels have shown that
the diversity of birds and mammals
species is sufficient.
51
2. Wara Mining Site
The ecological value of this location is
good enough and is indicated by the
formation of vegetation from the
secondary forest and mixed gardens, and
also by the diversity of mammals, birds
and reptiles found in the location. Results
of the vegetation analysis and species
matrix in the beginning 2010 show:
1) A monoculture vegetation, such as
the wholesome rubber tree
plantation, palm oil stand and revegetation with low variety (<3
types), indicates a low level of plant
diversity and a very low level of
several vegetation layers;
2) The fauna diversity relatively
follows the diversity of the plants,
except in special cases such as the
shrub layer which is the habitat of
mammals and birds. In case with
a poor diversity of shrub
vegetation; and a very low diversity
of mature trees, sapling and
seedling levels have shown that
the diversity of bird and mammal
species is sufficient;
52
3. Paringin Mining Site
The formation of natural vegetation and
mixed gardens, which consists of fruits
and natural plants, has high ecological
values compared to those of other
formations, such as the bushes or empty
area, the vegetation area, the wholesome
rubber tree plantation and the palm tree
plantation. The results of vegetation
analysis and the species matrix in the
beginning of 2010 in Paringin area are:
1) The secondary forest in the
observation area at various
vegetation levels, especially at the
under-canopy level and shrub layer,
is classified as having a low and
very-low biodiversity.
2) The fauna diversity relatively
follows the diversity of the plants,
except in special cases such as the
bushes vegetation which is the
habitat of mammals and birds. In
case with a poor diversity of shrub
vegetation; and a very low diversity
of mature trees, sapling and
seedling levels have shown that the
diversity of bird and mammal
species is sufficient.
In line with the Environmental Impact
Assessment (EIA) document, Adaro
Indonesia carries out reclamation and revegetation in former mining sites in order
to manage the biodiversity and make the
areas useful and beneficial, through:
[EN14]:
• The development of local plants in
Kalimantan, in cooperaton with
Lambung Mangkurat University
and the Banjarbaru Office of
Forestry Research [EN13].
• The implementation of reclamation
in several stages, which are: land
structuring, erosion control,
hydroseeding, and fast-grow and
perennials planting.
• The cultivation of various plants,
including the original forest plants
of Kalimantan, annual plants, and
fruit plants in the reclamation area.
Some of the plants are Chinese
Albizia (Albizia chinensis), Acacia,
Leucaena/the leadtree, Samanea
saman (the rain tree), Gliricidia
sepium (Gliricidia), eucalyptus, and
Sesbania grandiflora (the
hummingbird tree).
Some rehabilitated areas are inside the
former mining site in Paringin [EN13].
Greenhouse Gas Emission [EN16]
Total greenhouse gas emission of Adaro
Indonesia has been computed by using
the data of total fuel consumption in 2009,
which is 396,664,379 liters or equal to
104,787,662 gallons. The total includes
only the fuel consumption of the
contractors in the mining sites and does
not include fuel consumption for other
activities.
The methodology to compute the
greenhouse gas or CO2 equivalent follows
that of the USEPA (2005): Emission Facts:
Average Carbon Dioxide Emissions
Resulting from Gasoline and Diesel Fuel.
EPA420-F-05-001 and IPCC (2006): The
formula for the computation is [3.9]:
2,425 grams C/gallon * 100% oxidation
factor * 44 g CO2/12 g C *
1 metric ton/1,000,000 g
=
8.89*10-3 metric tons CO2/gallon of
gaspelumasne
Sumber: www.epa.gov/cleanenergy/energyresources/calculator.html
Berdasarkan perhitungan diatas maka
emisi gas rumah kaca di Adaro Indonesia
adalah sekitar 931.562 metric tons CO2.
Air Emission [EN20]
The air emission measurement is carried
out on the ambience air quality. The
parameters for measurement are dust,
PM10 dan PM2,5, fallen dust, NH3, Cl2, HF,
H2S, HCl, SO2, NO2, Opacity, Pb Cd, Zn, Sb,
As and Hg.
The air emission measurement is carried
out bi-annually on the main sources of
emission, which are the 21 units of
generator used daily for the operation.
The measurement shows that the
emission is still under the allowed
maximum emission standard issued by
the government (KEP.13/MEN LH/3/1995).
The results of measurement of the 21 generators
Emission
Unit
NH3
C12
HF
H2S
HCL
SO2
NO2
Debu
Opasitas
Pb
Cd
ZN
Sb
As
Hg
mg/m3
mg/m3
mg/m3
mg/m3
mg/m3
mg/m3
mg/m3
mg/m3
%
mg/m3
mg/m3
mg/m3
mg/m3
mg/m3
mg/m3
Range of Measurement
Results
0,0242 - 0,4904
0,5 - 9,5
0-9
0,0111 - 0,8685
0 - 2,4498
3,163 - 36,3559
18,403 - 537,9563
1,9239 - 325,0872
0 - 30
0 - 9,6768
0 - 0,0877
0 - 5,4318
0 - 0,0423
0 - 0,0549
0 - 0,0005
Maximum
Standard
0,5
10
10
35
5
800
1000
350
35
12
8
35
12
8
5
Source: Primary Data, Department of Manpower and Transmigration,
Secretariat General Center for Occupational Health and Safety, 2009
Operational air
emissions are always
monitored and
minimized.
Routine
monitoring on
emissions is
carried out.
53
About 2,600,000 m3 or 2% of the total
volume of the water (in 2009) was used
to hose the mining road and several
locations at the hauling road, especially
from Km 73 up to ROM 1 (High Wall), from
Km 68,5 up to 73 and the Panas Market
in Kelanis. This activity is usually conducted
by using the water tank trucks with
capacities of 20,000, 50,000, and 80,000
liters.
Water and Waste Water
In the loading facility in Kelanis, the
company draws water from the river to
be consumed for domestic needs, such as
to drink and to clean up the coal (in order
to ensure the quality of the coal). Total
volume of water drawn from the river in
2009 was 656,355 m3 [EN8].
Water recycling was also conducted to
about 150,000 m3 or 2% of the water (in
2009) by converting the previously
mentioned water through the Water
Treatment Plant (WTP) T.300 into clean
water. WTP 300 was set up in 2008 on the
west side of the Tutupan mining site. The
recycling capacity is 20 liters per second
and the storage capacity of the clean water
is 450 m3 and 75 m3. [EN10].
Total amount of Water Drawn and Used
from the River in Kelanis
33.739
Ground water and surface run-off water
drawn and used in 2009
622.616
No
3
1
This ground and surface run-off water,
with a total volume of 153,000,000 m3 in
2009 [EN8], , was managed by Adaro
Indonesia. The water is usually collected
in a pond. Half of the water is reused while
the other half is usually flown to the
recipient water body after being
processed.
54
Amount (m3)
Water Drawn
water treatment total volume (m )
3
water spray (m )
In the mining process, a large amount of
ground water floods the mining area. The
water then would be pumped out from
the mining wall aquafier, in order to ensure
the mining wall stability, such that the
mining activities would be safer.
Item
The road in the mining
site is hosed every day
to reduce dust
In pit sum (from the
ground water) and
surface runoff water in
Tutupan
153.000.000
Water Drawn
2
Water Treatment Plan
(WTP T300)
3
Water Used to Hose
the Road
153.000
2.600.000
The concepts in managing the in-pit sump
and surface run-off water are [EN21]:
• Preventing the surface water from
the undisturbed area coming into
the settling pound.
• Designing the settling pond by
considering the catchment area
and rainfall.
• The standard design of the settling
pond uses three compartments
with different functions.
• The use of physical and chemical
processing.
• The maintenance of settling pond
is carried out to avoid
sedimentation.
• The monitoring of result at the
structuring spot uses pH, TSS, Fe,
Mn, and daily debit as the
parameters.
Flow Chart of the Waste Water Treatment System
RUN OFF & IN PIT SUMP
IN PIT POND
WATER TREATMENT PLANT
SETTLING POND
WATER BODY
Adaro Indonesia’s
effort to use and
alter waste water
from mining
operations into
consumable clean
water resulted
recognition from the
Minister of Social
Affairs in the CSR
Awards.
Based on the regent regulations (SK Bupati)
of Tabalong No 274 in 2008, Balangan No
188.45/021/Kum in 2008, Balangan No
188.45/126/Kum in 2009, and South Barito
No 389 in 2006, Adaro Indonesia is allowed
to dispose processed waste wáter into the
main river bodies, including the Balangan
and Tabalong River.
55
Solid Waste [EN22]
Every day, Adaro Indonesia produces waste
in the form of:
• Non B-3 waste:
The waste from activities in the
office area is disposed to the dump
site (TPA) of the local regency
government.
The leftover waste food of the
contractor members in the
working area is processed into
compost in cooperation by
Hokkaido and Lambung Mangkurat
University.
The amount of leftover waste food and
the compost produced is shown as
follows:
Amount of processed waste and produced
compost
154,76
160*
140
120
100
80
60
40
20
0
115,73
86,56
38,89
2007
36,25
2008
42,15
2009
*Hundreds (Kg)
Processing leftover
food from the
workplace and
converting it into
usable compost
56
•
Hazardous waste: is delivered to
the third party to be processed
according to the permit and
regulation of the Ministry of
Environment and the Directorate
General of Transportation. Adaro
Indonesia does not transport
hazardous waste outside the
country. [EN24].
1-2.5%
Kandungan Abu Envirocal terendah dipasaran
batubara global
Amount of Hazardous Waste in 2009
Unit of
Measurement
Sumber
Adaro
Buma
Puma
RA
SIS
Used Oil
Liter
Workshop
49,700
583,540
1,534,600
382,360
909,682
18,000
2
Used Battery
Pcs
Workshop
6
590
1,337
6
427
*
3
Used Filter
Pcs
Workshop
100
22,425
37,095
20,588
130,378
*
4
Grease Waste
Kg
Workshop
2,980
0
3,417
0
0
1,255
5
Paint, Thinner, and
Solvent Cans
Drum
Workshop
0
0
0
0
1,241
*
6
Utility Rag Waste
Karung
Workshop
330
395
23,096
0
2,318
4,700
7
Sawdust
Karung
Workshop
0
0
0
0
103
*
8
Empty Printer
Cartridges
Pcs
Office
0
92
0
10
310
*
9
Used Flourescent
Lightbulbs
Pcs
Office
0
0
0
1,021
0
*
No
Waste Type
1
KELANIS
10
Empty/Used Fuel
Drums
Pcs
Workshop
0
0
0
215
1,482
0
11
Diesel Fuel Waste
Liter
Workshop
0
0
147
0
0
*
12
Grease Waste
Liter
Workshop
0
0
0
0
66
*
13
Used Hoses
Pcs
Workshop
0
1,028
1,139
10
10,512
*
14
Welding Wire
Waste
Kg
Workshop
0
0
0
20
6,325
*
15
Used Gloves
Pcs
Workshop
0
45,558
0
0
369,456
*
Source: Hazardous Waste Balance Sheet of Adaro Indonesia
Note: *) unit of measurement of waste of the loading facility in Kelanis is in “drum”, which contains various (B3) Dangerous & Poisonous Waste such as used battery, hose, tube
lamp waste, used filter, welding wire, and glasses. Total number of the drum was 149 in 2009.
Reuse of Used Oil in 2009 for the Mixture of Explosive
30.000
27.500
25.000
26.360
20.000
20.000
20.874
14.500
15.000
12.500 12.150
10.000
10.000
5.000
16.627
14.020
4.000
0
nu
fe ary
br
ua
ry
m
ar
ch
ap
ril
m
ay
ju
ne
ju
l
au y
se gus
pt
em t
b
oc er
to
no be
ve r
m
de ber
ce
m
be
r
0
ja
Half of the used oil from the mining
operations is usually reused for the
material mixture of explosives (ANFOemulsion). About 178,521 liters of used
oil was reused in 2009. The allowed
composition is 50% used oil and 50%
diesel fuel. The proportion rose from the
previous composition of 25%.
Waste Oil (liter)
57
Kesehatan dan Keselamatan Kerja
Activities of Reusing Used Oil as the Additional Material for Blasting in Adaro Indonesia.
Service Unit
Mixing Solar Fuel and Used
Oil in the Mixing Plant
Mixing Ammonium Nitrate with Diesel
Fuel + Used Oil (ANFO) for the
Explosive
58
Pretreatment with Filtering
Mixture is carried out by the
special unit (the Blasting Unit)
Explosion Produces Zero Balance
Oxygen (White Smoke)
Storing in TPS
The Flow In and Out of Used Oil is
recorded in the logbook
Explosion results no boulder-shape
fragmentation
Spills [EN23]
Impact of Transportation Activities
[EN29]
Hydrocarbon (oil and diesel fuel) spills
occured in 2009 and, to handle this, Adaro
Indonesia has implemented the System
and Procedure on Hydrocarbon
Management and has set up a particular
team that manages hydrocarbon spills.
The spills were successfully isolated in the
mining sites to prevent negative impacts
on the external environment.
·
·
Frequency of spills in 2009
·
14
·
The impact of transporting products and
services on the natural environment is
described as follows:
12
10
Gas emission that pollutes the air
from vehicles. To minimize this, the
vehicles are routinely maintained
and emissions are measured.
Fuel consumption of the vehicles.
The efforts to improve this are
maintaining the vehicles regularly
and carrying out an energy
efficency program.
The dust in the air due to coal
loading, transporting and dumping
activities. The efforts to address
·
this are measuring the dust content
of the air in the area and carrying
out a coal treatment procedure.
Coal spill from coal loading,
transporting and dumping
activities. To handle this, a
procedure on coal spill treatment
has been implemented.
Noise due to the coal dumping
activities. The efforts to minimize
the impact are monitoring the
noise and managing the dumping
procedure.
8
6
4
2
0
PAMA
BUMA
SIS
RA
ADARO
Cost for the Environmental
Management [EN30]
Adaro Indonesia has committed to
managing and monitoring the natural
environment. In 2009, the spending for
managing the natural environment was
Rp. 47.901.200.679.
Cost for Managing the Environment
(jutaan rupiah)
18.000
16.000
14.000
12.000
10.000
8.000
6.000
4.000
2.000
0
16.305
15.654
7.982
3.914
2.849
637
353
206
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59
Improving the
employees
This Section Describes the
Impact and Performance of
Adaro Indonesia’s Operation
on Employees.
Adaro Indonesia gurantees and subscribes
employees to the Worker’s Social Security
Program (Jamsostek)
60
61
Improving the Employees
Improving the Employees
There are 513 employees working for
Adaro Indonesia. They are classified into
Management, Staff and Non-staff [LA1]:
Based on employment status, more than
half of the employees are permanent
employees.
Composition of the Employee Group by
Status
600*
101
500
400
300
25
388
412
Based on the age of employees, more
than half of the employees are at a
productive age between 31 and 40 years
old.
200
100
0
2008
2009
*KARYAWAN (orang)
Non-permanent
Permanent
Composition of the Employee Group by Age
Workforce as of December 31, 2009
600*
600*
19
500
110
300
205
175
200
100
300
391
513
2008
23,78%
122
0
2009
LOCAL
*EMPLOYEE (people)
41-50th
76,22%
100
162
4
>50th
400
200
112
0
100,00%
500
123
16
400
62
Based on the origin of employees, more
than half of the employees are local
people because Adaro Indonesia gives fair
employment opportunities and prioritizes
local workforce. Fourty percent of the
individuals at the management level are
also local people.
*EMPLOYEE (people)
31-40th
21-30th
<20th
source: HR Report, 2009
NON LOCAL
TOTAL
Comparison between Local & non-Local
Employees by Employment Levels
100%
90%
58,5%
38,8%
11,1%
88,9
80%
Composition of the Employee Group by
Gender and Employment Level
100%
70%
90%
60%
80%
61,2
50%
39
40
288
297
1
1
10
10
70%
40%
30%
Based on the gender, the number of
female employees has increased and
women already fulfill managerial positions.
60%
41,5
20
50%
20%
14
40%
10%
MANAGEMENT
NON LOKAL %
STAFF
NONSTAFF
LOKAL %
20%
Comparison of the Number of Local and
Non-local Employees Between Companies
as of December 31, 2009
4500
30%
0%
The data presented above shows the
number of employees of Adaro Indonesia
only. If employees of the sub-contractors
are also counted, the total number of
workforce is 1,117 people. The number
of people working in the area of operation
of Adaro Indonesia would be 12,623
people if employees of the four main
contractors, namely PT Pamapersada
Nusantara (Pama), PT. Bukit Makmur
Mandiri (Buma), PT. Sapta Indra Sejati
(SIS), and PT. Rahman Abdi Jaya (RA), are
also included.
121
4000
145
1181
3500
10%
3000
0%
2008
2009
MAN
MANAGEMENT
2008
2009
WOMAN
NON STAFF
STAFF
3044
2500
1026
2000
1197
1500
1000
500
1693
180
937
833
339
1207
316
668
0
ADARO PAMA BUMA
NON LOCAL %
RA
SIS
OTHER
LOCAL %
The increase in the number of employees
in 2009, compared to that in the previous
year, followed the increasing volume of
production in 2009.
63
Possessing a Mutual Work Agreement
Remuneration and Allowance
The rights and liabilities of the employees
and the company are written in the
Collective Work Agreement (PKB). The
agreement is usually reviewed every two
years in a meeting with the (OPA) Adaro
Labor Union.
Remuneration for the employees is set up
and given according to the employment
laws and regulations, by considering and
is not less than the Provincial Minimum
Wage (UMP) and the Provincial Sectoral
Minimum Wage (UMSP) regulated by the
provincial/local government [EC5].
The content of the Collective Work
Agreement in general is about the
employment regulations concerning the
rights and liabilities of the employees, the
professional relationships and the
industrial/employment dispute resolution.
Aspects included in the Collective Work
Agreement (PKB) are:
1. Status and facilities,
2. Professional relationships, working
days and hours,
3. Annual Leaves,
4. Permission to leave,
5. Salaries, wages and benefits, and
medical benefits including the
occupational health and safety
[LA9],
6. Skill development,
7. Order and disobedience,
8. Complaint mechanism,
9. Redundancies.
One hundred percent of the employees
of Adaro Indonesia are protected by the
Collective Work Agreement [LA4].
64
The salary increase is given based on an
employee promotion scheme for
outstanding employees through
examinantion led by the corporate leaders.
This is also applied to determine the
incentives for the employees.
Freedom of Association
To ensure its existence in the company,
the employee group has a formal
organization, namely the Adaro Labor
Organization (OPA) that represents the
employees and brings forward
considerations to the company.
Each employee is a member of OPA
through a voluntary membership
mechanism.
In addition to salary and wages, the
employees of Adaro Indonesia receive
[LA3]:
1. Overtime wages for non-staff
employees
2. Annual, maternity and
menstruation leaves
3. Religious holiday allowance
4. Medical allowance
5. Field allowance (especially for
employees in Kelanis and Permata
Barito),
6. Housing allowance (especially for
on-site employees in Kalimantan),
7. Worker’s Social Security Program
8. Medical Services
9. Transportation facilities to
workplace, worship facilities,
entertainment, mobilization costs,
and 3 sets of uniform each year.
Providing Work Protection [LA3]
In the aspect of work protection, the
company subscribes the employees to the
Worker’s Social Security Program
(Jamsostek). This is the government’s
program that should be followed by all
employers and their employees. This
program includes: the Occupational
Accident Security Program (JKK), Fatality
Security Program (JK), and Postemployment Security Program (JHT). The
company does not subscribe the
employees to the Health Security Program
(JPK) because the company has and
implements its own health insurance
program that is relatively better than the
Health Security Program (JPK).
Employees who should take a bedrest for
reasons of non-occupational accidents still
receive salaries from the company based
on the following 4-phase mechanism:
For the first four months of absence:
100% x salary
For the second four months of
absence: 75% x salary
For the third four months of absence:
50% x salary
For the next four months of absence:
25% x salary (up to termination)
Developing Lifelong and Career-long
Learning [LA11]
Since 2009, Adaro Indonesia has been
implementing the Standard Operating
Procedure on training management to
ensure that every employee and manager
receives training programs in order to
develop their knowledge and skills and to
improve their behavior.
The training program is designed based
on the Performance Development System
and the training need analysis. Based on
the results of the training need
identification, the annual training schedule
is developed into three categories, which
are: General, Technical and Leadership
Training. Employees who receive training
should present the new knowledge they
acquire and be evaluated by the Division
Head/Section Head.
Types of trainings:
At the Managerial Level, emphasizing
soft skill training such as mental
development, ESQ and an External
Leader Camp.
At the Technical Level, training is
usually carried out based on the needs
of each department.
Safety is the training about the
occupational safety and the
certification program concerning the
safety need.
Adaro Indonesia also provides a crosslevel training for non-staffs, staffs (officers,
foremen, and supervisors), and employees
from middle-up managerial level. For
example, the company organizes a Mental
and Physical Training (BINTALSIK) with
militaristic methodology and led by
military instructures.
The employees that enter the end-ofcareer phase also receive training, ”Pra
Purna Bakti”. One year before the age of
55, the employees participate in
entrepreneurship training. This training
includes mental (post power syndrome)
preparation training, financial
management training and other training
according their interests in businesses that
they want to manage after retirement.
These types of training are also given to
the spouse of the participating employees.
If needed, Adaro Indonesia also gives reemployment opportunities to retirees.
Usually, the re-employment is carried out
in order to develop, guide and grow the
corporate values of the new employees.
In 2009: the average training hours per
employee was 20.6
Number of training hour & participant
(people)
(hour)
600
12.000
9.936
500
400
10.000
10.000
8.000
496 488
300
6.000
200
4.400
2.752
2.176
100
110
212
128
2008 2009 2008 2009
MANAGEMENT
STAFF
G
R
A
D
2.952
145
4.000
2.000
2008 2009
NON STAFF
E
Participant
Total Hour
Average training hours per employee
(people)
70.00
60.00
50.00
20.75
20.36
20.03
20.49
19.78
21.50
2008
2009
40.00
30.00
20.00
10.00
0.00
non-staff
staff
management
65
There was a decreasing number of
participants of training and an increasing
number of training days per employee in
2009 compared to 2008 because of the
improvement that we made. Since 2009,
the Training Need Analysis (TNA) was
implemented prior to designing the
training in order to make the training in
line with the needs of the company and
to be able to focus on work issues.
However, it took a long time to develop
the TNA, which resulted in a delay in the
TNA implementation in 2009.
Career development of the employees of
Adaro Indonesia is known as the
Performance Development System
Program. It is a one-year development
program that covers the processes of:
a. Determining the workload in the
beginning of the year
b. Determining the agreement
between the leaders and
subordinates
c. coaching-counseling
d. Performance Review at the end of
the year is carried out together
with the process of identifying the
best employee.
e. Fit and proper test
The number of employees that received
career promotion in 2009 [LA12]:
The number of employees that received
career promotion in 2009
4.5
4
4
3.5
3
2.5
3
3
2
2
1.5
1
0.5
0
66
supervisor
manajemen
non-staff
staff/ foreman
Motivating the Employees and
Appreciating the Employees’
Performance [LA12]
To appreciate the employees’
performance, the Reward for the Best
Employee was granted in the period of
2008 up to 2009. Those who received the
appreciation as the best employees are:
Adaro Indonesia’s employees (Staff,
Non Staff)
Sub-contractor employees (labor
supply’s employees, drivers and
contractors’ employees currently
working in Adaro Indonesia)
The announcement of the best employees
was carried out in the event of “General
Morning Talk” at the beginning of the
year. The winners of the Adaro Indonesia’s
Best Employees 2009 were:
Karyawan Teladan Adaro Indonesia tahun
2009 adalah
Level
Winner
Staff
1. Kadarisman (External)
2. Syamsul Bahri (Geology)
3. Diki Wandani (Production)
Non Staff
1. Ageng Prasongko (TDS)
2. Supian Syarif (Geology)
3. Rahmat (CPBL)
Labor Supply 1. Supriadi (Production)
2. Emanuel (HRGA)
3. Bijuri (TSD)
Driver
To motivate the learning spirit of the
employees’ children, the company also
provides Special Educational Assistance
for the employees’ children, who have
good performance in their studies (criteria
for elementary school up to senior high
school pupils: ranked 1st -5th in the class;
for college students: a minimum GPA of
2.75 for those in engineering programs
and a minimum GPA of 3.00 for those in
non-engineering programs).
Turn Over [LA2]
The employee turn over rate was 4% (25
persons) in 2009 because of various
reasons. The main reason was the end of
the work contract and the second primary
reason was the willingness to lift up career
level. Three persons were discharged due
to indisciplinary behavior and sanctions.
Turn Over Karyawan
12
8
2
0
MANAJEMEN
Non Voluntary
0
STAFF
3
NON STAFF
Voluntary
1. Amrullah (Environmental)
2. Gazali Rahmat (TSD)
3. Supriatin (Production)
67
How
the Stakeholders
See Us
68
The Stakeholders of Adaro Indonesia
[4.14]
The stakeholders of Adaro Indonesia are
classified into:
Shareholders
Employees
Contractors
PT Pamapersada Nusantara
PT. Bukit Makmur Mandiri
PT. Sapta Indra Sejati (SIS)
PT. Rahman Abdi Jaya
The Community at Large
Non-Governmental Organizations and
Community Groups
YABN
Islamic Boarding School Darut
Tauhid
Islamic Boarding School
Hidayatullah
Islamic Boarding School Al-Islam
Islamic Boarding School Darul
Musthafa
Daniel Foundation, East Barito
Islamic Boarding School Ilhya
Ulumudin
CRDS
The universities and research
institutions
Hokkaido University, Japan
The Indonesian Institute of
Sciences, Limnology
The Indonesian Institute of
Sciences, Limnology
Bogor Agricultural Institute
Gajah Mada University
Bandung Institute of Technology
Lambung Mangkurat University,
Banjarbaru
The Office of Forestry Studies,
Banjarbaru
The National Institute of Islamic
Religion, Banjarbaru
Amuntai College of Nursing, Hulu
Sungai Utara
Local Government
The Provincial Local Development
Body and the Local Development
Body of Kabutan
The Local Government of Tabalong,
Balangan, Hulu Sungai Utara, Barito
Kuala, East Barito, and South Barito
Regency
The Local Government Body on
Natural Environment
The Village Community
Empowerment Body
The Department of Mining and
Energy
The Department of Forestry
The Department of Immigration
The Department of Education
The Department of Health
The Department of Plantation
The Department of Agriculture
The Department of Husbandry
The Department of Fishery
The Department of Cooperatives
and SMEs
The Department of Manpower
The Department of Industrial and
Trading
The Department of Social Affairs
The Statistic Office
The Security
The National Land Agency
The Local Lower House of
Representatives
Mass Media
Kompas Newspaper, Banjarmasin
Post, Bebas Baru Tabloid
Identifying the Stakeholders
[3.5]
The stakeholders are identified regarding
particular criteria, which are the location
proximity, influence on the company,
interests, experience, and professionality.
Based on these, the stakeholders can be
classified based on:
Work partnership
Work location
Organizational relevance and the
insitutional authority on particular
issues
Personage and influence.
In increasing the stakeholder engagement,
the approach used is to make good
planning and to ensure the participation
of stakeholders from the beginning. This
should be conducted through dialogues
with relevant stakeholders regarding their
needs and by asking them to actively get
involved in program implementation
[4.16].
CSR Community Group
Recently, those who hold the Coal
Contract of Work (PKP2P) and Production
Contract (KK) have set up the CSR
Community Group in South Kalimantan
and Adaro Indonesia has been appointed
as the Chair. Through the community
group, it is expected that the mining
corporations can develop and maintain
good relationship with their stakeholders
and that the group can generate new ideas
or regulations to improve the social
performance of the company. [4.13].
“
...make good planning and to
ensure the participation of
stakeholders from the
beginning...
”
The Stakeholders’ Perception [1.2]
Employee
(Teguh Budirianto, Geotech Support,
Electrical)
Teguh has been working in Adaro
Indonesia for three years. He, who is the
President of the Adaro Labor Union (OPA),
is proud of being a part of Adaro
Indonesia. For him, the existence of the
bi-annual training on skills, the employees’
engagement in the efficiency program at
any aspect, the EDUTAMBANG program
and the CSR programs indicates that “the
company, especially the management,
cares very much about the quality of the
employees”.
He was impressed when he and his coworkers won the Gold Prize in the fire and
rescue competition held by the
Department of Mining. To appreciate his
achievement, Adaro Indonesia gave him
a bonus and allowed him to take a
vacation.
Realizing that the community members
have big interest to work at Adaro
Indonesia, he hopes that the company
may increase the promotion of
recruitment process for the candidates,
such that people can easily receive
recruitment information.
Government
(Mr. Ansharudin, the Vice Regent of
Balangan)
Mr. Ansharudin can not deny that the
development in Balangan Regency is highly
stimulated because of the support from
Adaro Indonesia through its social
responsibility programs. He values that
the programs of Adaro Indonesia
straightforwardly address the needs of the
community, such that the beneficiaries
directly experience the benefits from the
programs.
”Adaro Indonesia is responsible enough
through the development of road
dedicated particularly for the mining
activities and the reclamation of former
mining site appropriately” he said. Besides,
he has seen that the good relationships
with the local government and the
involvement of the local government and
other stakeholders in CSR planning are the
positive efforts of Adaro indonesia.
Mr. Ansharudin expects that Adaro
Indonesia can keep prioritizing local people
in the employee recruitment process and
expanding the programs that are directly
related to the community.
69
dari budget Pemberdayaan masyarakat 2009
untuk bidang ekonomi
Cleric
(KH. Ahmad Rasyidi Amin, the President
of MUI in Tabalong Regency, South
Kalimantan)
KH. Ahmad Rasyidi Amin sees that the
presence of and assistance from Adaro
Indonesia gives positive impacts, including
the impacts on religious aspects, in the
operational area. Nevertheless, he
emphasizes the need to increase
cooperation between Adaro Indonesia
and the ulama. The role of ulama is very
significant in bridging the gaps between
Adaro Indonesia and the community, mass
media and non-governmental
organizations. The ulama has carried out
a multi-stakeholder meeting and would
like to hold the meeting regularly in order
to generate solutions to the problems
occured, without sacrificing particular
parties.
He also expects that Adaro Indonesia can
be more transparent in giving information
to the community.
70
Contractor
(Mr. Agung Hadi Widiyono, CDI Section
Head PT. BUMA)
Since joining one of Adaro Indonesia’s
contractors in 1993, Mr. Agung sees many
positive impacts from the presence of
Adaro Indonesia. One of which is the
economic growth and the development
of life quality of the community.
He saw several incidents, such as water
pollution, land disputes and also
community’s demand for employment in
Adaro Indonesia and its contractors as
well. All of these have taught Adaro
Indonesia to search for the win-win
solutions.
Mr. Agung was very impresed by his
experience of being involved by Adaro
Indonesia in the CSR program on health,
which was the cataract surgery, and on
education, which was the bookmobile
program. ”The contractors usually
participate in every program planning,
including budgeting. The togetherness and
cohesiveness that occurs, creates a
condusive working environment” he said,
whilst expecting that the existing
cooperation could be improved by
maintaining the agreed aspects.
In 2009, Adaro Indonesia cooperated with
a team from the Center of Demographic
Research of the Lambung Mangkurat
University to carry out a study about the
community’s perception regarding the
CSR programs of Adaro Indonesia in 10
villages around the mining sites. Results
indicate that [SO1]:
Overall, there is a good perception on
the community empowerment
program, except for the area where
its inhabitants only receive restricted
funds and limited programs, or, where
the programs, or, where the programs
are not suitable for the condition in
the area.
Suggestions for improvement are:
To flow funds and carry out the
programs more evenly in ring 1,
especially in the economic
developmental aspect.
To engage the community and
village officers in the program
planning.
To further study the impact of
community empowerment
program on the level of
community wealth.
Community
(Ms. Nordinah S. Ag (50 th) – The parent
of a grantee of the Adaro Indonesia’s
scholarships)
. Ms. Nordiah is very delighted because
her son, Habibi, has been nominated as
one of the ten grantees of Adaro
Indonesia’s scholarships for college
education. Habibi is accepted to study at
Bogor Agricultural Institute.
For Ms. Nordiah, as a single parent and
teacher, the Adaro Indonesia’s care is a
blessing that she is grateful for. She
expects that Adaro Indonesia keeps its
commitment to develop education and
the quality of local youths through this
scholarship program. It is expected that
the options of universities and faculties
offered in the program can be expanded,
such that local youths can develop various
other skills. At the end, the students are
expected to implement the knowledge
they have learned, to develop their
homelands. Thank you Adaro!
“
...the Adaro Indonesia’s care
is a blessing that she is
grateful for. She expects that
Adaro Indonesia keeps its
commitment to develop
education and the quality of
local youths through this
scholarship program.
”
A study on the
community’s perception
of the CSR programs of
Adaro Indonesia in 10
villages around the
mining sites
71
How We
Wrote This
Report
This is the second Sustainability Report of
Adaro Indonesia but the first report that
was written according to the GRI version
3.0 sustainability reporting standard. The
report covers a period of one year, from
January to December 2009 [3.1]. In the
future, the reporting will be carried out
annually [3.3].
The report includes the economic, natural
environmental and social performance,
especially in the area of the company’s
operation and its surroundings in Dahai,
Tutupan, Klanis, and Banjarmasin.
The contents of the report were decided
through a series of cross-division and
cross-management level discussions. In
the discussions, the participants used the
latest guidance from the GRI, which was
the GRI version 3.0, in order to understand
the principles and guidelines to verify the
report content and to ensure the report
quality, and also to guide the participants
in disclosing performance. The participants
in the discussions were from the
Departments of Environmental, Safety,
CSR, HRGA, ERD, Accounting, Geologi,
Geotech, Land Acquisition, PSSP, PNSP,
Hauling and Infrastructure, and from the
two projects located in Paringin and
Kelanis [3.5].
The materiality and priority of the topics
in this report were defined regarding the
observation and experience of the
management and staffs, who were
involved in the reporting development,
and also the availability of data from the
reporting period. The facts written in this
report consequently became the
foundation for the management to
continuously improve the reporting and
the economic, natural environmental and
social performance comprehensively for
the coming periods.
The summary of items and indicators of
GRI version 3.0 fulfilled in this
Sustainability Report are:
Aspect
Pg.
Strategy and Analysis
1.1
1.2
Organizational Profile
2.1
2.2
2.3
2.4
2.5
Report Parameters
Governance,
Commitments
and
Engagements
Profile of the Report
2.6
2.7
2.8
2.10
3.1
3.3
3.4
Scope of the Report
3.5
3.6
3.9
GRI List of Content
3.12
4.8
Corporate
Governance
Commitment to Any 4.12
Kind of External
Affairs Relevant to
Sustainability
4.13
Stakeholder
Engagement
4.14
4.16
72
Statement of the President Director
Description of Key Impacts, Risks, and
Opportunities
Name of the Company
Primary Brands, Products and/or Services
Operational Structure of the Company
Location of Organization’s Headquarter
Locations, where the Company Operates, that
are Related with Sustainability Issues
Nature of Ownership and Legal Form
Market Served
Scale of the Organization
Awards Received
Reporting Period
Reporting Cycle
Contact Point for Further Information
Regarding the Report or Its Content
Process for Defining Report Content
Boundary of the Report
Data Measurement Techniques and Bases of
Calculations of Indicators
Table Showing Reporting Content
Mission, Values, Code of Ethics, and Principles
Relevant to Sustainability and Status of
Implementation
Charters, Principles or Other External Initiatives
to Which the Company Subscribes or Endorsed
2
13,
69
7
5,6
10-11
7
4,19
Membership in Associations
List of Stakeholder Groups Engaged by the
Company
Approaches to Stakeholder engagement
68
69
7
6
7
8,9
72
72
1
69,72
1
53
72,73
12
13
69
Aspek
Economic
Indicators
Economic
Performance
EC1
Direct Economic Value
16,26
Market
EC5
Range Ratios of Standard Entry Level Salary
Compared to Local Minimum Wage.
Locally-based Supplier
Local Manpower
Development and Impacts of Infrastructure
Investments for Public Interests
64
Indirect Economic
Value
Environment
Indicators
Pg.
Material
Energy
Water
Biodiversity
EC6
EC7
EC8
EC9
EN3
EN5
EN8
EN10
EN11
EN12
EN13
EN14
Emission, Effluent
and Waste
Products and
Services
Transportation
Overall
Labor Practices and
Decent Work
Performance
Indicators
Employment
Management and
Industrial Relationship
Occupational Health
and Safety
Training and
Education
Society
Performance
Indicator
Community
EN16
EN20
EN21
EN22
EN23
EN24
EN26
Indirect Economic Impacts
Direct Energy Consumption
Energy Saving
Water Withdrawal
Water Recycled and Reused
Protected/High Biodiversity Value Areas
Dampak signifikan terhadap
Significant Impacts on Biodiversity
Habitats Protected or Restored
Strategy, Current Actions, and Future Plans for
Managing Impacts on Biodiversity
Greenhouse Gas Emissions
Other Significant Air Emissions
Waste Water Discharged
Solid and Liquid Waste
Spills
Transported Waste Under the Basel Convention
Inititatives to Mitigate Environmental Impacts
18
18
20,23,
37,40,
41,42
17,43
49
50
54
54
51
51
52
51,52
53
53
55
56
59
56
48
EN29 Environmental Impacts of Transportation
EN30 Natural Environment Protection Expenditures
and Investments
LA1 Total Workforce
LA2 Total Employee Turn Over
LA3 Benefits to Employees
LA4 Collective Work Agreement
59
59
LA7
LA8
LA9
47
46
46,64
Occupational Accidents and Diseases
Prevention of Serious Diseases
Occupational Health and Safety Topics Covered
in the Collective Work Agreement
LA10 Employee Training
LA11 Skills Development and Lifelong Learning
LA12 Performance and Career Development Reviews
SO1 Practices to Assess and Manage the Impacts
of Operations on Communities
62
67
64,65
64
65
65
66,67
13,19
73
PT Adaro Indonesia
copyright 2010