Suka Maju Women Farmer Group Processing Rubber at Rubber Rubber Smoking Stations

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

Smoking Stations Rubber Plantation Development Prawn Breeding Adaro’s Microinance Program Initiated by the perspective on the important roles of women in family welfare, in which other than nurturing the children, women can also help their husband in supplementing family income, a number of housewives founded a womens farmer group called Kelompok Wanita Tani Suka Maju which has the dream to improve the welfare of their families. A cooperative was established by the Agricultural Department of Tabalong regency in 2005 and now 25 people are listed as its members. he cooperative has also set up a savings and loan cooperative with most of its funding supported by Adaro’s micro inancing institution. Although still in its early stages, this cooperative has already given beneit to its members. Besides supporting the funding, the Finance Institute also coaches its members by acting as a mediator in support of the members’ business of vegetable farming and group partnership, as well as their development as vegetable farmers.

5. Rubber Smoking Stations

he Rubber Smoking Station project is part of Adaro’s CSR program that is an extension of the high-yield rubber plantations development that has been underway for a number of years and is designed to increase the income of rubber farmers and thus provide incentives to continued small holder rubber plantation development. Since 2005, Adaro has been giving funding support for the building of rubber smoking stations which produce higher quality semi processed rubber sheets, a higher value product which increases the selling price and revenue of rubber farmers. Adaro also founded a business development institute named Lembaga Pengembangan Bisnis LPB and through this institution, Adaro provides various training for the communities such as group dynamic training, post-harvest business training for farmers, and the training on the calculation of dry rubber content. here are currently a total of 5 rubber smoking stations in Balangan regency in Babayau and Tamiyang village, 2 stations in Tabalong regency Balida and Banyu Tajun village and 1 station in Warukin village.

6. Clean water distribution to the communities through pipelines