Institute for Educational Potential Development of Adaro Partners LP3AP

Adaro Energy Annual Report 2009 123 www.adaro.com from livestock and poultry waste that is used as fertilizer on reclaimed mining areas and nursery areas to grow plants and cover crops for land reclamation and for animal fodder. The objectives of this Integrated Agricultural Program are to: 1. Set a model of integrated agricultural management for the surrounding community; 2. Create employment and business opportunities; 3. Establish cooperation with various counterparts as the irst step to creating partnerships with the community; and 4. Serve as the learning facility for the community surrounding the operational area. The program has shown satisfying results with the following progress achieved as of 2009: Number of Balinese cows grown from 100 cows to 190 cows Superior cows grown from 288 cows to 325 cows Broiler chickens 18,000 chickens per hatching cycle Fertilizer production 70 bags day Bio Gas 1 unit Revegetated area 38.8 ha Workers 34 people This self-sustaining agricultural program is a prime example of Adaro’s commitment to establish a community that is independent in the aspects of business, education, and management. In 2009, Adaro won the following recognition from the Ministry of Social Affairs for its economic development programs: 1. KSN Awards 2009, Platinum Award, category: EconomyPartnership – Micro Financing Institution, Program: Banua Bauntung Microinance - Paringin Branch 2. CSR Awards 2008, Gold Award, category: Social and Environment – Integrated Agricultural Program Educational Enhancement

a. Institute for Educational Potential Development of Adaro Partners LP3AP

Prior to 2005, Adaro recognized that assistance to the local education system needed to become a priority for its CSR program if its goal of supporting sustainable development to local communities was to be successful. To achieve these development targets the Company established the Institute for Educational Potential Development of Adaro Partners, to develop educational programs that would assist the local educational authorities in enhancing proper formal education within the Community, develop local resources, improve the management of educational institutions and encourage better educational facilities that give stronger support to the learning process. The Institute was established on 13 October 2005, initially covering 3 regencies and 2 provinces: Tabalong Regency and Balangan South Kalimantan and East Barito Regency Central Kalimantan. Since then A villager receives a loan through Micro Finance Institute. Superior cows have grown in number from 288 to 325 through Adaro’s integrated agricultural program. Corporate Social Responsibility 124 Adaro Energy Annual Report 2009 From Us to Y ou Running Adaro Management Report Owning Adaro Governing Adaro Financial Report Contact Us Corporate Social Responsibility Adaro in Summary www.adaro.com a number of projects have been implemented that have already provided positive results to educational enhancement in these communities. Programs under the Institute: Teacher Training Adaro conducts teacher training through a number of training sessions and workshops to enhance teachers’ quality to provide better formal education. The programs are dedicated to not only the teachers, but also the principals and supervisors. As at the end of 2009, the number of teachers, principals and supervisors participating in the training program comprised of the following: Training Participants accumulative 2006 2007 2008 2009 Teachers, principals, supervisors 527 1,142 3,871 4,359 To date the teacher training program has been conducted in three regencies: Tabalong, Balangan, and East Barito with 181 participating schools, consisting of 142 in Tabalong Regency, 22 in Balangan Regency and 13 in East Barito Regency. Model School Program The Institute also has another excellent program, the Model Schools program comprising three elementary schools, three middle schools and two high schools within Tabalong Regency South Kalimantan and East Barito Regency Central Kalimantan which are expected to be a reference for educational quality enhancement within the area of Adaro’s operational site. The teachers of these schools have passed the Institute’s teacher training and workshop programs aimed at enhancing the knowledge and learning process. This Program commenced in 2009 and is designed to set the standard for the quality of education by involving school teachers, principals, students, and culture. The model schools are equipped with School Information Management System that serves as the benchmark to enhance the quality of model schools in the aspects of educational quality, teachinglearning process, and school management and a target of 2012 has been set for the schools to become a reference for educational quality enhancement in Tabalong and East Barito regencies and models for other schools in the region. Corporate Social Responsibility Adaro is committed to education through the model school programs. Adaro Energy Annual Report 2009 125 www.adaro.com Mobile Libraries Adaro aspires to encourage the spirit of learning and interest in reading among students and the community, and has developed a leet of mobile libraries. On National Education Day, May 2, 2006, Adaro launched three vans that had been transformed into mobile libraries, which travel around Balangan, Tabalong and East Barito regencies. Adaro keeps adding to the book collection for these mobile libraries to keep up with the demand of the communities, and there are now more than 15,698 copies and 4,229 titles. The book collection consists of textbooks, science books, children’s books, and books for speciic skills such as rubber plantation, agriculture, and ishery. With these mobile libraries, Adaro hopes to keep stimulating the interest in reading in the communities and to motivate them to have a thirst of knowledge and desire to expand their perspectives.

b. Scholarships