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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."


Implementation of Corporate Social Responsibility (CSR) programs for the Company is not only a compliance with the applicable laws and regulations, but also realization of the Company's concern about the community surrounding the plantation and their social dynamics. A sincere empathy will build a harmonious, mutually trusting, and mutually beneficial relationship between the Company and the surrounding community.

CSR programs conducted by the Company and its subsidiaries are designed to be integrated to expand coverage, to improve quality and to provide sustainable positive impact. The determination of direction and type of programs is based on social mapping to precisely identify and determine the prioritized needs of the people in the villages surrounding the plantation. The result of the social mapping is then used in the planning and determination of CSR programs.

Social mapping is conducted through discussions with the community and coordination with the village administration. Each program also involves the community during planning, implementation and supervision of the program. Periodically, the Company also reports the program's implementation and evaluation to relevant parties, particularly the local government.

The Company also applies the concept of monitoring and analysis of social dynamics. Through this mechanism the Company obtains updated information related to the ongoing social dynamics in the community. The information obtained can be in the form of input, aspirations, complaints or other matters going on in the community and affect or could potentially affect the Company's business activities. This activity aims to prevent, minimize and immediately resolve any potential problem that may occur in the Company's relationship with the community and will have impact on the Company's operational actvities.

CSR ACTIVITIES IN 2016

In 2016, the Company focused to continue CSR programs in 2015 which were considered to have positive impacts. Infrastructure and public facilities remain a priority. Enhancement and improvement of infrastructure quality will provide access to people and goods transportion across villages or from rural to urban area so as to grow the economy of the village.

Health care is also a concern since public awareness about healthy lifestyle and the environment is still relatively low. In addition, access to healthcare, either health centers or hospitals, is not available in several areas. Periodically, the Company provides counseling and medical examinations in cooperation with the local government.

In accordance with the Company's core competence, economic empowerment programs are aimed to encourage the local community to become palm oil plasma or self-sufficient farmers. The Company provides oil palm seedlings and counseling, and buys FFB yields that meet the Company's quality standard.

  • Education

    The Company conducted several activities to improve the quality of teaching and learning activities in several locations. CSR programs in education included:

    1. Provision of wages, allowances and honorarium to 77 teachers in 27 schools including kindergarten, elementary and junior high schools surrounding the Company's plantations.
    2. Donation for daily operations to several schools.
    3. Donation of computers, sports tools and equipment and learning equipment.
    4. Provision of school buses to transport students both the children of employees and the children of the community surrounding the plantation.
    5. Renovation of classrooms in several schools surrounding plantations of the Company's subsidiaries.
    6. Donation of learning equipment and sports equipment to several schools.

    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.

  • Public Infrastructure and Facilities

    The Company prioritizes road and bridge renovation program and helped the community obtain access to electricity. The programs to improve the quality and quantity of public facilities in 2016 were as follows:

    1. Renovated and replaced village road of 12,174 meters, repaired asphalt road of 9,000 meters.
    2. Renovated 1 (one) permanent bridge, 1 (one) drawbridge and2 (two) wooden bridges and culvert installation.
    3. Provided donation of funds and materials for the renovation and construction of 21 mosques, 5 churches and traditional houses in the villages surrounding the plantation.


  • Socio-Culture and Religion

    The Company plays an active role in developing community relations programs through religious, social, cultural and communal activities. These programs involve the local community and government in organizing religious celebrations, commemoration of national days, social activities and ethnic/traditional events.

  • Health

    The Company provided access to the community surrounding the plantations and plants. Health service was performed by providing access and ease to the community to get health care in the Company's clinics including utilization the Company's ambulance.

    In a number of activities, the Company's proactively supported health programs by the local government. The programs included health education, immunization and family planning program. Even one of the Company's plantations once trusted to host a family planning program competition at regency level. In the field of environmental sanitation the Company also proactively improved the environment quality, including eradication of mosquitoes causing dengue fever.

  • Economic Empowerment

    The Company launched a number of CSR programs to encourage the growth of local economic as well as the potential of the community and the environment.

    Through partnership program, the Company developed plasma plantation for the community surrounding the plantation including counseling on how to produce palm oil fresh fruit bunches (FFB) with good quality. The Company also provided palm oil seeds so that the local community can grow into independent oil palm farmers. Furthermore, the company is also willing to contain the surrounding community's FFB which meet the Company's quality standard.

    In addition to plasma program, the Company also conducts self-sufficient farmers program wherein the community is advised on palm oil cultivation on their own land. In several subsidiaries, the Company provides palm oil seeds ready for planting oil and advises the community on palm oil cultivation. Thus, the community can play an active role in palm oil cultivation and earn additional income. On the other side, the Company obtains additional FFB source to be processed. These programs are all aimed at making the community enjoy the benefits of the Company's presence.

    During 2016, economic empowerment programs conducted by the Company included:

    1. Prioritized the surrounding community to meet the need for workforce in plantations and mills.
    2. Empowered local entrepreneurs as suppliers of goods and services in plantations and mills.
    3. Developed self-sufficient farmers program.
    4. Donated ready to plant palm seeds to farmers who meet the Company's specified criteria.
    5. Donated ready to plant fruit seeds.
    6. Provided opportunity to local farmers to sell fresh fruit bunch (FFB) to the Company's mills.
    7. Advised plasma farmers and self-sufficient farmers on how to produce good quality palm.
CUSTOMER PROTECTION

The Company realized that customer satisfaction is the key to the success and sustainability of the Company's business. Therefore, the Company strives to maintain and improve the quality of products and services to costumers. The Company continues to improve good cooperation and communication with the customers and try to fulfill customer rights to get the best products according to agreed standards, standard of production processes, quality, volume and delivery.

Currently the Company's activities are limited to palm fruit, palm oil and palm kernel production. Therefore, the products sold by the Company are still in the form of crude palm oil (CPO), palm kernel (PK) and fresh fruit bunch (FFB). For customer satisfaction, the Company seeks to produce high quality CPO, PK and FFB.

As for the quality standards maintained are:
  • 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.
Each input and complaint from customers either by mail, email, phone or in person, is always responded properly. The Company opens communication lines for the customers including address, phone contact, email and personal in charge who can be contacted to obtain the required response and explanation.

SAFETY, HEALTH AND ENVIRONMENT

As a palm oil company, the Company puts occupational safety, health and environment (K3L) as an integral part of business processes of the Company. K3L cultivation spirit has been a concern of palm oil companies in Indonesia. Besides as compliance with regulations stipulated by the government in Law No. 13 of 2003 concerning Labor Law and Government Regulation No. 50 of 2012 concerning Implementation of Occupational Safety and Health Management System (SMK3), palm oil industry also has an interest to pay attention to environmental issues as set out in ISPO (Indonesian Sustainable Palm Oil) principle and criteria to achieve the sustainable palm oil production standard and to improve market access for Indonesian palm oil industry.

K3L Commitment

The effort to cultivate K3L culture to create zero injury and zero accident is a challenge because majority of field workers have low education level. It takes commitment from all leadership levels in the plantation ranging from managers, foremen and assistants to act as change agent acting as consistent role models in complying with K3L rules in performing their duties, including discipline in using personal protective equipment (PPE) according to the type of work and the potential risk.

To ensure consistency in K3L implementation, before starting the job the employees conduct morning briefing/safety talk to remind about safe working procedures. K3L socialization is also done by placing persuasion posters at certain locations, particularly in the plants and plantations.