122 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
Corporate Social Responsibility
With its motto, “Creating love, developing and maintaining partnerships, growing with the community, blossoming with the people” PT Adaro Energy has established its commitment of becoming a responsible
partner and a good neighbour toward the community surrounding its operations area.
Using this as a basis, Adaro Energy through its mining subsidiary Adaro Indonesia has conducted its Corporate Social Responsibility CSR programs over many years by taking into account the potential of
the region in its moves to support community empowerment in the surrounding area. The CSR programs encompass four areas for community development:
1. Economic development 2. Educational enhancement
3. Health improvement 4. Social and cultural promotion
In 2009, the entire group of companies that form Adaro Energy spent a total of Rp51 billion of CSR activities, an increase of 39 over the Rp37 billion spent in 2008.
Economic Development
Adaro has many programs aimed at providing economic development to surrounding communities in South and Central Kalimantan. These include :
a. The Development of High Yield Rubber Plantations
Adaro’s operational area has shown to have high potential for rubber plantation development. Higher yield rubber trees are planted to utilize idle land or to replace plantation areas which are no longer productive.
Through a Business Development Institute set up by Adaro and its partners, the farmers are trained and educated on rubber cultivation and the techniques to improve crop quality and the management of a rubber
smoking station. The training program commenced in 2007 in Balangan Regency, Tabalong Regency, and East Barito
Regency with an initial area of 1,251 hectares with 693 farmers undergoing training. The program has been running continuously since then and as of 2009, the Institute’s training program had reached 4,849
farmers with a total of 4,350 hectares under cultivation.
b. Micro Financing Institute
The Micro Finance Institute Banua Bauntung was established with the objective of providing capital access for micro up to medium sizes enterprises MSME’s in various sectors such as trading, services,
agriculture, plantation development, animal husbandry, and home industries. The Institute is expected to serve as an intermediary micro inancial institution for MSME’s, improve cooperation with its customers,
government, and the community, and strengthen human resources quality and its capital structure. Lending activities started in 2005, soon after its establishment and the Institute now has ofices in four
regencies: Tabalong, East Barito, South Barito, and Balangan.
Loan Development from 2005 to 2009 in Millions of Rupiah
Year The amount of Financing
Number of Clients Year 2005
1,403 1,951
Year 2006 5,221
5,398 Year 2007
6,415 5,833
Year 2008 8,522
5,406 Year 2009
7,965 4,217
As of the end of 2009, the total fund allocated was Rp29.5 billion for 22,805 customers – these igures include outstanding and repaid loans.
c. Integrated Agricultural Program Adaro has developed an integrated agricultural program for enhancing livestock and poultry rearing that
works in conjunction with crop development for animal feed and the production of biomass and bioliquids
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
