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" Strengthening harmonious business continuity through harmonious collaboration, we are able to create a favorable business climate so that various initiatives and business strategies can be implemented as planned."


The Company understands that business success will be realized if the Company is able to maintain a balance between business activities and social responsibility activities for the community and the environment. It is appropriate that the economic value obtained also provides benefits to the surrounding community and environmental sustainability through quality and sustainable corporate social responsibility (CSR) programs.

The Company's business activities will certainly have an impact on the social order and the surrounding environment. If the impact is not properly managed and anticipated, it will potentially create a greater risk for the sustainability of the Company's business. Conversely, the acceptance and support of the local community will be one of the supporting factors to the success of the Company in achieving performance targets.

Hence, the Company designs CSR programs to build conducive social relations between the Company and its subsidiaries with the communities around the operational areas of each subsidiary. The Company as much as possible seeks to facilitate the realization of expectations and to meet the needs of the community, in an effort to participate in advancing their welfare. The CSR programs are addressed at creating a more independent and more prosperous society, covering the aspects of education, infrastructure and public facilities, social culture and religion, health and economic empowerment.

CSR ACTIVITIES IN 2018

In 2018, the Company continued its flagship CSR programs that were considered beneficial for the community, particularly in infrastructure and public facilities, as well as education. In addition to these aspects, the Company paid attention to improving the quality of public health by providing health services in the form of free counseling and health check at certain occasions in cooperation with the local government. Education about healthy lifestyles was conveyed in informal occasions so as to encourage public awareness about the importance of maintaining a healthy lifestyle and environment.

The Company also facilitated the land owners who were interested in becoming plasma farmers or self- sufficient oil palm farmers and bought the harvest of fresh fruit bunches (FFB) in their plantations as long as they met the Company's FFB product quality standards. Thus, the community got the benefit from the existence of the Company to increase their income.

  • Education

    CSR programs in education aimed at improving quality of the learning activities were continued in 2018 with the following activities:

    1. Aid for honorarium and benefits for 60 teachers at 20 schools consisting of kindergarten, elementary and junior high schools around the plantations and mills.
    2. Donation to support daily operations for several schools.
    3. Donation for learning facilities, such as computers, sports facilities and equipment and so forth.
    4. Provision of school buses to transport students either children of employees or of the community.
    5. Donation for renovation of classrooms for several schools surrounding the plantations.

    Various educational programs throughout 2016 provided benefits to the community particularly to the students of kindergarten, elementary, junior high up to high schools reaching approximately 8,150 students from 53 schools.

  • Infrastructure and Public Facilities

    Infrastructure development programs for roads, bridges and other public facilities conducted in 2018 were as follows:

    1. Renovation of asphalt road along 21,000 meters.
    2. Renovation of 2 (two) permanent bridges, 3 (three) suspension bridges and 5 (five) wooden bridges.
    3. Donation of funds and materials for renovation and construction of 20 house of worship.
    4. Renovation of 4 (four) sports facilities.


  • Social Culture and Religion

    The Company was actively involved in supporting various religious, social, cultural and civic activities. A number of activities throughout 2018 were held in cooperation with the community, including religious festivals, national memorial days, social events, traditional/cultural events and donations for orphans.

  • Health

    The Company has polyclinic facilities in the plantation and ambulances for the employees. The Company also provided opportunities and facilities for the communities surrounding the plantations and mills to utilize these health services.

    In addition, the Company actively supported health education programs organized by the local government, such as, immunization and family planning. The Company also facilitated periodically fogging in several locations to eradicate mosquitoes to prevent contagious disease.

  • Economic Empowerment

    A CSR program that aimed to encourage the empowerment of the community's potential was development of oil palm plasma plantation for the surrounding community. In addition to plasma program, the Company also implemented self- sufficient farmer program that provided assistance to the community to cultivate oil palm plants on their own land. The Company provided palm oil seedlings ready for planting and counseling on oil palm cultivation so that the community could play an active role in the cultivation of oil palm and could earn additional income. On the other hand, the Company could obtain additional sources of FFB to be processed. All of these programs were aimed to make the community enjoy the benefits of the Company's presence.

    Throughout 2018, the Company conducted various economic empowerment programs, among others:

    1. Prioritized the local community in meeting manpower needs in plantations and mills.
    2. Provided the widest opportunity for the local entrepreneurs as suppliers of goods and services in plantations and mills.
    3. Developed self-sufficient farmer program.
    4. Provided ready-to-plant seedlings to farmers who met the criteria established by the Company.
    5. Provided ready-to-plant fruit seedlings.
    6. Provided opportunity to local farmers to supply FFB to the Company's mills.
    7. Provided counseling on effective oil palm cultivation to plasma farmers and self-sufficient farmers.
CUSTOMER PROTECTION

Customer protection is a key to the Company's business success and sustainability. Therefore, the Company strives to maintain its product quality standards and to provide good services to customers. The Company ensures the customer rights in getting the best products according to the agreed upon standards in terms of production process, quality, volume and delivery.

Currently, the Company's activities are still limited to harvesting oil palm fruits, production of palm oil and palm kernel. The products available for sale are crude palm oil (CPO), palm kernel (PK) and fresh fruit bunch (FFB). The Company optimally strives to produce quality CPO, PK and FFB.

The quality standard parameters that should be maintained include:
  • For Palm Oil (CPO)-Acid level maintained at <5%, moisture and impurity level at <0.5%.
  • For Palm Kernel (PK)-Moisture and impurity level is maintained at <16%.
  • For Fresh Fruit Bunches (FFB)-standardized Weight Husks average (BJR), maturity level, and type of seed.
Every customer feedback and complaint either by mail, email, phone or in-person, must be properly responded. The Company provides various communication channels for customers including address, phone contact, email and person in charge that can be contacted to get the necessary response and explanation.

Sustainability Commitment

The Company, as a part of agricultural based business sector also bears the responsibility. In 2018, the company has continued to run the initiatives affirming sustainability commitment.

PT Mutiara Agam(MAG) and PT Transpacific Agro Industry (PAI) has managed to be certified for Indonesia Sustainable Palm Oil (ISPO).

ISPO (Indonesian Sustainable Palm Oil) Certification

Complying to the Regulation of the Minister of Agriculture (Permentan) No. 11/2015 regarding ISPO, year 1 surveillance audit has been performed in 21st-25th May 2018 for subsidiary MAG. The audit report has been successfully submitted to the ISPO Commission in August 2018.

After following two required audit stages and fulfilling all necessary findings, the subsidiary namely PAI has been fully ISPO certified in August 2018.

Safety

Going further in safety compliance, the company sent 3 (three) personnel (1 Supervisor, 1 Manager and 1 Director) for Occupational Health and Safety Management System (OHSMS) training in May 2018. The company has set a program to implement this system throughout the whole subsidiaries. This is a part of having compliance beyond the OHS standard currently applied within the company.

Fire

In 2018, the Company applied the principles of occupational safety and fire prevention. The Company established Emergency Response Team (TKTD) and conducted training consistently for TKTD personnel. Fire towers are activated and Team in standby position for 24 hours.

The company continuously performs regular fire extinguisher inspection for all subsidiaries and conduct hotspot monitoring system.

Conservation

The subsidiary MAG is having its replanting program applied on the way. As a part of conservation program and legal compliance, 50 m riparian on each side of the river bank is restricted for replanting. Local native species will be introduced instead. From the total 750 ha replanting program in 2018, 50 ha river riparian is allocated for conservation.

PROPER (Program for Evaluation and Rating of the Company Performance on Environmental Management)

In 2018, for the fifth time in a row MAG is awarded "BLUE" for meeting the criteria in the annual PROPER award. The monthly monitored pollutant parameters in wastewater are consistently below the standard set by the government. Similar circumstance applies for the emissions of the mill and gensets. In term of Toxic and Hazardous Wastes (B3) management, the report shows consistency in the balance sheet, meaning that all B3 waste generated is collected and handed over to the authorized B3 transportation agency.