Community Empowerment Social Community

112 PT TOBA BARA SEJAHTRA Tbk - 2014 Annual Report 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

In every mining activities, the Company always prioritizes the aspect of environmental conservation. Implementation of mining operations based on the proper technical rules or “green mining” begins at the planning stage that internalizes the prerequisite of occupational safety and environmental preservation. This is managed in an environmental management system that meets the standards of ISO14001:2004 certiied by the certiication body Lloyd’s Register Quality Assurance Ltd. obtained by ABN on August 28, 2014. The Company’s commitment to environmental protection is stipulated in the Occupational Safety, Health and Environment K3LH issued by the Subsidiaries to declare commitment to implement an integrated and planned K3LH system in order to minimize the risk of any activity. One way to achieve this objective is to preserve the environment and minimize damage and pollution to the environment. Environmental management activities carried out by the Subsidiaries throughout 2014 are: • Environmental assessment and monitoring including the following activities: - Monitoring the pH and debit of settling pond wastewater daily. - Examination of settling pond wastewater monthly. - Soil fertility test quarterly. - Ambient air test quarterly. - Exhaust emissions test quarterly. - Noise test quarterly. - Water bodyriver test quarterly. All assessment and monitoring activities in 2014 have been implemented as planned 100. • Reclamation activity plantation arrangement and revegetation planting were performed at the mine site including reforestation of mine out area, out-pit dump area, in-pit dump area, and topsoil-stock area. Revegetation may be in form of planting standing trees or covering crops, depending on the conditions of each area being restored. Until 2014, the Company and its Subsidiaries had planted more than 118 thousand trees. Awards In 2014, two Subsidiaries namely ABN and IM successfully achieved PROPER Program for Evaluation of Company Performance in Environment Management with Blue Rating. PROPER is an award for environmental management provided by Ministry of Environment based on assessment of the Company’s legality and permits AMDAL, HGU, and so forth, efforts to control air pollution, water and soil, B3 waste management and the Company’s CSR activities. Blue Rating level: Suficiently Good is awarded to companies that have made signiicant efforts to control environmental pollution or damage to or implemented cleaner production and achieved the results in accordance with the minimum requirements stipulated in the applicable laws and regulations.

2. Social Community

The quality of CSR programs in social community has been gradually improved beyond charity programs to activities that encourage empowerment and self- reliance of the community.

a. Community Empowerment

To empower the community and strengthen the economy in the Company’s surrounding area, IM designs a rolling program of hybrid etawa goat breeding. The pilot project was implemented gradually, involving active participation of villagers in Pendingin Village with the following stages: • Provided material for four sets of goat stall delivered to the respective RT as program beneiciaries. Each farmer group will built the stalls independently under IM’s guidance on the ideal stall design. CORPORATE SOCIAL RESPONSIBILITY PT TOBA BARA SEJAHTRA Tbk - 2014 Annual Report 113 • Procurement of goats’ drugs to ensure the animal health in order to promote the breeding of superior offspring. Procurement of drugs is for one year stock and livestock health management is assisted by Department of Animal Health Unit of Sangasanga District. • Handing over of 24 hybrid etawa goats to farmers consisting of 20 females and 4 males. The program lasted for 3 years wherein at the end of the program, the farmer groups will deliver 24 goats to IM to be rolled to other residents. • Other than goat meat that can be sold or consumed by the community, IM also bought manure products resulted as the farmers’ by product. The Company bought a maximum of 30 sacks per stall per month. IM used the manure for purposes of planting revegetation trees on reclamation are and other greening activities. • Then IM plans to provide training for farmer groups to produce fertilizer from livestock manure. While the activities related to empowerment of local communities carried out by ABN include: • Routine counseling of Joint Business Group KUB in Jawa and Pendingin Villages. • Socialization of cooperatives establishment in Jawa and Sangasanga Dalam Villages. • Training in the production of essential oils from citronella plant, attended by village staff, youth clubs, farmers and mothers of KUB Separi, Jawa Village. • Donation for packaging tools of processed products of KUB in Sangasanga District. KUB product is a domestic industry made by mothers as additional family income. • Preparation for product exhibition of KUB in Sangasanga District to be held in January 2015. 114 PT TOBA BARA SEJAHTRA Tbk - 2014 Annual Report • The pilot project of Bali beef cattle and brahma beef cattle. • The pilot project of citronella cultivation. • Cultivation of elephant grass for livestock fodder. • Facilitating technical training and health care for cattle breeding given by Department of Animal Husbandry. • Donation for routine operational funds for soccer school Taruna Jaya, Jawa Village. • Donation for routine operational funds for soccer school Gelora Pantai, Sangasanga Dalam Village.

b. Education