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3. Interest Rate Risks
Interest rate risk on cash low is one risk where future cash low will luctuate because of interest rate
changes. Currently, the exposure comes mainly from a long term syndicated loan with loating interest.
Loans with loating interest will create risks for the Company’s cash low.
The Company manages interest rate risks by using a capped interest rate throughout the loan period.
Through this mechanism, the Company limits its exposure to the loating interest rate by using a swap
interest rate. On December 31, 2014, the Company had signed a swap interest rate agreement with BNP
Paribas, and the Company believes that this risk management strategy will have a long term positive
impact.
4. Weather Risks
Weather conditions in the concession areas can affect the Company’s mining activities signiicantly.
All concessions of the Company are located in East Kalimantan, which is a location that is greatly
affected by seasonal weather. Generally, most of the dry weather happens on second and third quarter,
while high rainfall happens between November and March. The Company usually suspends production
temporarily in the concession when it is raining because of safety issues.
IMPORTANT MATTERS
In 2014, there were no signiicant legal matters, either criminal or civil, faced by the Company, member of the
Board of Commissioners, as well as members of the Board of Directors.
WHISTLEBLOWING SYSTEM
The Company is still studying the requirements of applying a whistleblowing system as a means to make
a report if someone inds instances or actions that may violate the law or the Company’s code of ethics. So far,
the Company has implemented an open door policy where the Directors and management teams are open
to accept an employee’s grievance and complaint, and to discuss the problem. Basically, the Company wants to
build a conducive work environment by enforcing good work ethics.
CORPORATE GOVERNANCE
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In aspects of social responsibility, Toba Bara is committed to improve the quality of
education, public health and economic self- suficiency of the community and preserve
the environment and ecosystem functions in the surrounding areas of the Company’s
operations.
Local workers Recruited by Company 2014
61
RESPONSIBILITY CORPORATE SOCIAL
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Toba Bara understands that long-term sustainability cannot be achieved solely through the fulillment
of operational targets and inancial performance. Business success will be achieved if the Company is
able to maintain a balance between the achievements of economic performance, social performance and
environmental performance Proit, People, Planet. It is appropriate that the economic value obtained also
beneit efforts to improve the quality of education, health and economic self-suficiency of communities in
the area around the Company’s operations as well as to protect the environment through quality and sustainable
Corporate Social Responsibility CSR programs.
As a mining company with an area managed of more than 7,000 hectares next to the communities in three
districts in Kutai Kartanegara Regency, East Kalimantan, the Company is committed to pursuing economic
empowerment of communities around the mine site. The Company would like to continue to grow and
develop with the community, build a harmonious relationship in the midst of the preserved environment.
The Company also has an obligation and responsibility to restore the environment and ecosystem functions
post-mining activities and to ensure that the mined land can be planted with productive crops for the
community’s welfare. Thus, the Company’s presence can be of the utmost beneit and meet the expectations of
stakeholders, including the community.
The Company’s CSR activities are carried out by its Subsidiaries which interact directly with communities
around the mine concessions, namely PT Adimitra Baratama Nusantara ABN, PT Indomining IM, PT
Trisensa Mineral Utama TMU, and PT Perkebunan Kaltim Utama I PKU. The policies and direction of CSR
activities are determined by taking into account the most urgent needs of the local community and based on the
Subsidiaries’ capabilities.
RESPONSIBILITY CORPORATE SOCIAL
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One of the Company’s CSR policies is prioritizing local community to meet the Company’s manpower
needs so that the Company’s presence in the area can provide direct beneits to the community. The Company
together with its contractors and sub-contractors have accommodated local labors from Sangasanga, Loa
Janan and Muara Jawa Districts, Kutai Kartanegara Regency that represent approximately 61 of the labor
needs, while the remaining approximately 39 came from outside these districts.
CSR ACTIVITIES IN 2014
The Company’s CSR activities during 2014 are organized in four areas, namely:
1. Environment, comprising the Company’s efforts for protection and management of the environment,
including rehabilitation of mined area and revegetation, monitoring water quality, dust, noise,
waste as well as eficiency of energy and other resources.
2. Social community, comprising efforts to improve the quality of public health, improvement
of environmental infrastructure, community empowerment and education.
3. Employment practice, comprising efforts to increase awareness and skills of employees to avoid and
minimize health risk and occupational accidents. 4. Product responsibility.
One of Toba Bara’s CSR policies is prioritizing local community to
meet the manpower needs so that Toba Bara’s presence provides
direct beneits to the community.
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The total cost of CSR activities of the Company and its Subsidiaries in 2014 amounted to US 6.2 million, an
increase of 13.3 compared to US 5.5 million for CSR activities in 2013.
1. Environment
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