Rural Economic Movement for Islamic Students Gema Desa Santri SME Development Program

7 137 - 142 CORPORA TE SOCIAL RESPONSIBILITY PT Adaro Energy Tbk. 139 Annual Report 2010 www.adaro.com

2. Rural Economic Movement for Islamic Students Gema Desa Santri

Adaro implemented the award winning Rural Community Economic Movement program with the aim of stimulating the economic development of rural communities. To ensure more efective implementation, this program is managed under cooperation with Islamic boarding schools, NGOs, Youth Pioneer Groups, and the local military command Kodim. For Gema Desa Santri, Adaro utilizes boarding schools as economic stimulators for the communities, with the expectation that other community groups will follow. he Darul Mustafa Islamic Boarding School is among those chosen by Adaro since this boarding school is a social institution that has strong roots in the Tabalong regency in particular, and in South Kalimantan province in general. Infrastructure development, horticulture and cattle rearing are examples of the activities carried out within the Gema Desa Santri program. Other programs carried at in cooperation with NGO’s Pioneer Groups and Kodim include development of ish farming, craft industry and multipurpose cooperatives.

3. SME Development Program

One of the goals of the CSR programs conducted by Adaro is to create economic independence for its communities. Micro, Small and Medium Enterprise development is one sector that has great potential to ultimately build a society that is economically independent. he problems faced by small entrepreneurs in developing their business are generally related to lack of capital, skills and marketing. One of the SMEs that have been coached by Adaro is “Riser Service” Electrical Workshop. his workshop was founded in 1996 by Mr. Noor Syamsu Zauhar. Initially, it only had 1 employee, and due to the lack of funds and skills, Riser Service could not expand the business. In 2005, Adaro started to support its funding with a loan from the Microinance Institution, and also provided training through its Business Development Institute. As of the end of 2010, Riser Service employed 16 employees and its monthly turnover is continually increasing. Riser Service now operates in 3 business locations, 2 in Tabalong and 1 in Barito Timur.

4. Suka Maju Women Farmer Group Processing Rubber at Rubber