COMMUNITY DEVELOPMENT PRINCIPLES [4.8]
The Company contributes through the development and maintenance of community's welfare which are implemented by upholding the following fundamental principles:
- Based on needs
Community development is based on the communities' needs, not their wants.
Community development is carried out with attention to specific problems, aspiration, and potential of each community.
- Self-reliance oriented
Community development is aimed at guiding the community towards an attitude of self-reliance, with everything is done according to the capabilities of both parties ( the Company and the community).
Community participation is the key to the success of community development. The communities' willingness to participate is determined by the relevance of the initiatives / programs undertaken to their actual needs. Therefore, an adequate understanding of the community's needs is significant matter.
To reach an understanding of the needs as well as the problems, aspirations and available potential, as well as to serve consistently, the Company assigns personnel with special tasks to provide assistance to communities in the vicinity of plantations. These officers, often called Community Development Officers (CDO), intensively build communication, establish ties and maintain relationships with communities around the plantation. Thus, every program implemented is expected to involve people through active participation and achieve the mutually agreed targets. This harmonious approach is shown by the absence of incidents or disputes that lead to incidents of human rights violations or to cause the Company faced with formal institutions. [HR9][HR11]
Growth will guarantee the continuity of the Company's role as a driving force of economy in the regions and in the creation of new jobs. This is manifested among others by the Company's policy to involve communities as business partners. This policy allows the Company's presence to bring greater benefits to the communities and regions, as the economic driver, stimulating business growth and creating new job opportunities. As a result, various types of businesses grow and flourish in the area of oil palm plantation operations managed by the Company. This is one of the non-tax obligations undertaken by the Company. [EC9]
During 2011, the Company carried out its social responsibility with focus on Economy, Education and Health.
The Company always involves communities as its reliable business partners. Partnership transactions between the Company and local partners consist of:
In 2011, the Company paid Rp3.2 trillion to plasma farmers, independent farmers, and farmers participating in the Income Generating Activity (IGA) program, for purchasing raw material of oil palm fresh fruit bunches (FFB). The Company also paid Rp634 billion to local suppliers for various supplies of goods and paid Rp763 billion for various types of services from local partners. [EC6]
Total value of partnership transactions with local communities rose 52% from Rp3 trillion in 2010 to Rp4.6 trillion in 2011.
The Company participated in the Smallholder/Nucleus Plantation (PIR) program and Primary Cooperative Credit for Members (KKPA) program, with total area of plasma plantations reached 60,126 hectares in 2011.
The PIR program has succeeded to improve quality of life of the program's participants, transmigrants and indigenous residents. The improvement in quality of life is reflected in their current living condition which is more prosperous compared to the situations before PIR program was launched.
Income Generating Activities (IGA) Program
The Company carries out Income Generating Activity (IGA) that as of December 2011 has helped 7,297 households own oil palm plantations to increase their income. Through the IGA Program, the Company has distributed loan assistance of palm seedlings along with fertilizer worth Rp 39,397,260,587. The area of oil palm plantations owned by the community developed through the IGA program has reached 14,465 hectares. With this IGA program, the Company can also buy the crops of the farmers' oil palm plantations. Purchase of oil palm fresh fruit bunches from plasma farmers, KKPA and IGA during 2011 reached 2,082,271,957 tons, an increase from the previous year of 1,426,997 tons. IGA program, aside from loans, also provides training and assistance programs, conducted by plantation staff to assist farmers implementing proper techniques of palm oil cultivation. [EC6]
In the long run, the program participants will enjoy progressive increase of income in line with the production increase of their plantations. The increase of income in the short term was obtained from inter cropping horticultural crops, such as peanuts and corn. IGA program has increased the wealth of the farmers because the added value of land for being turned into oil palm plantations.
In addition to oil palm business, the Company also supports the financing of several small businesses, such as cattle farms, chicken farm,s land fishery, horticultural agriculture and which are all run by residents the vicinity of plantation.
Implementation of various programs aimed at increasing people's income, including plasma farmers, KPPA, and IGA also face a number of obstacles. One of the obstacles that must be addressed is the impact of weather, since their activities were mainly growing oil palm trees. High intensity of rainfall can affect the quality of fresh fruit bunches production, which ultimately determines the quality of CPO product. The Company anticipates this by providing mentoring assistance for them to mitigate the impact of high rainfall on the quality of fresh fruit bunches. [EC2]
Micro Finance Institutions
The Company has established two micro finance institutions (MFI/LKM) in West Sulawesi, LKM Mitra Surya Sejahtera in Sarudu Village, Sarudu District, Mamuju Utara Regency and LKM Benteng Kayu Mangiwang in Polohu Village, Budong-budong District, Mamuju Regency.
MFI is an institution to accumulate capital from the community of oil palm farmers fostered by the Company. Plasma farmers are expected to save their money in the MFI, which then is channeled as loans for farmers participating in IGA program to start their activities, then the latter in turn will help plasma farmers at the time of oil palm replanting in plasma plantations. The MFI plays a role in encouraging the community to save and be more productive. [EC9]
Until the end of 2011, the Company has developed and operated 22 kindergartens, 20 elementary schools and five junior high schools. All of these educational institutions are supported by 333 teachers who educate approximately 7,587 students. These schools consist of: [EC8]
- 5 private junior high schools fully managed by the Company
- 9 private elementary schools fully managed by the Company
- 11 state elementary schools supported by the Company
The Company continues to monitor and evaluate the educational facilities that are fully managed by the Company as well as state schools that have its support to ensure the learning process run smoothly. In addition to evaluation and physical building development, the Company has also organized a number of trainings for principals with materials of leadership, school management and curriculum development, school supervision, and national education policies. The education quality development program is not only conducted for principals but also for teachers who directly act as educators.
The continuous improvement of physical and non-physical qualities conducted by the Company has raised the quality of these schools that are located in the vicinity of plantation sites. The schools have received accreditation from National Education Agency since 2010. Out of 14 private schools managed by the Company, six of them have yet to be accredited, as they have only been operating in less than four years while one junior high school only began operating in 2011.
The accreditation shows quality improvement by these schools at the regional level. However, the Company still feels the need to further improve the quality of these schools to reach the same quality of better schools at national level. Therefore, the Company is committed to improve the quality of these schools to meet the National Education Standard (SNP) and has plus points from its graduates, both for elementary schools and junior high schools. This target expected to be achieved in 2015.
Sokola Halom Program
Sokola Halom (nature school) program is specially designed for Suku Anak Dalam community who has different way of life from most communities in general. The school was established in 2009 and managed by PT Sari Aditya Loka in collaboration with local Regional Government and surrounding communities. This program is intended for Suku Anak Dalam community from Temenggung Tarib and Betaring groups in Pematang Kabau Village, Air Hitam District, Sorolangun Regency and Sikar group in Muara Delang Village, Tabir Selatan District, Merangin Regency, Jambi Province. [EC8]
Learning activities for Suku Anak Dalam have been running for three years. In the academic year of 2009/2010, there were 22 students, while in the following academic year there were 17 students, and 28 students have attended in the academic year of 2011/2012. Most of the first batch students have graduated, with two of them decided to continue their study in state schools.
Activities in the nature school are focused on learning to read, write and count, which are taught in a creative way to make it easier for participants. Other than that, materials of subjects taught in the school have local content emphasizing especially on moral conduct based on customary values. The programs of nature school also involve students' parents to help communicate with them. Sokola Halom also pays attention to the health of Suku Anak Dalam children by teaching them about hygiene.
During 2011, the Company has awarded scholarships to 1,078 students of elementary school, junior and senior high schools. The Company provided scholarships of various types. Scholarships for external parties are granted to students of elementary school, junior and senior high schools, as well as university students (scholarships for university students are work commitment scholarships). For internal parties, the Company provides scholarships for senior high school students and "posthumous scholarships" to support the education of children of employees who died during their service period. The funds cover education expenses for elementary schools, junior and senior high schools, up to the university with work commitment.
In 2011, the Company continued its Work Commitment Scholarship Program by providing the opportunity for 10 high school graduates to study in the Production Engineering and Manufacturing Process Study Program with Concentration in Plantation Crop Processing Engineering (TPHP) at Astra Manufacturing Polytechnic which focuses on management, maintenance and controlling of oil palm processing plant. As of 2011, 50 participants have taken part in the Work Commitment Scholarship Program. That year, 13 participants from Batch I have completed their study, and startedto serve the work commitment at the Company's oil palm plants.
Posyandu Revitalization Program
The Company took an intiative to improve the community's health through Integrated Service Post (Posyandu) Revitalization Program that began in March 2011. Through this program, 376 Posyandu have been revitalized in 243 villages around the company's plantations. The Company also facilitated training for 2,141 cadres of Posyandu. [LA8]
During 2011, Posyandu that have been revitalized were able to serve 34,573 people by providing vitamins, food supplement, immunization, monthly weighing for infants and toddlers, Family Planning, minor treatment, and environmental health counseling.
PT Sari Lembah Subur situated in Genduang Village, Riau, is a subsidiary of PT Astra Agro Lestari, Tbk, which has supported plasma farmers in economy, health, education, and sports. Assistance provided by the company, including infrastructure improvements, provision of school facilities and infrastructure, maintenance of plasma farmers' plantation road, village road construction, promotion of village integrated service post (posyandu), and distribution of food supplement for toddlers. In religious field, PT Sari Lembah Subur helped organize district mass prayer (Tabliq Akbar), as well as support the fostering of youth club Karang Taruna and sports for local youths. "We are very grateful to PT Sari Lembah Subur for all of its assistance. We feel very supported".