We are committed to improving social and economic conditions wherever we operate, and our focus on sustainable livelihoods and sustainable employment opportunities promotes self-sufficiency. In collaboration with our partners, we identify programs to promote a better standard of living.
Our economic development programs include:
Local Business Development
We support programs that offer training in small business development and supply chain management. Our Local Business Development (LBD) program is intended to develop and transform small local companies and cooperatives located in our operational areas in Riau, East Kalimantan and West Java into reliable, professional and competitive suppliers of goods and services, while at the same time boost local economy. Since it first launched in 2001, the program has resulted in more than 7,500 contracts have been awarded to Indonesian local companies,more than 50,000 jobs have been created.
Through LBD workshops, budding entrepreneurs are provided with training in Health, Environment, and Safety, procurement procedures, business ethics, project management, technical aspects and financial management to develop the capacity of LBD partners. In 2008, our LBD program was recognized by the Ministry of Energy and Mineral Resources with the bestowing of the Padma Award for Social Solidarity.
Our multi-year PRISMA program provides small grants, capacity building trainings, technical assistance and access to loan through micro finance institutions to local farmer groups, small businesses and cooperatives in 11 regencies and cities in Riau, East Kalimantan and West Java. In total, PRISMA program supports more than 1,200 beneficiaries. The program covers assistance in 36 sectors, including agriculture, fishery, processed food commodities, creative industry in the form of tenun (weaving) and batik making, as well as the establishment of eco-cultural tourism villages.
We introduced an integrated farming practice to the Sakai people in Riau by providing them with agricultural, fishery and livestock training as well as technical assistance. In 2013, a cooperative was established to better assist the Sakai farmers in managing their fish and duck farming and agriculture products as well as product marketing and distribution. Meanwhile, more than 800 farmers in Darajat, West Java, benefit from an integrated sheep breeding program, which includes technical training in cattle fattening, waste management, biopesticide and biogas as well as micro financing.
A group for people with disabilities and women in Balikpapan is receiving training, equipment, materials and marketing help to produce environmentally-friendly batik products. Similar assistance in batik-making is also being offered to a group of women in Rumbai through the establishment of Cempaka Batik House. Training and assistance in craft production are also provided to women in three different districts in East Kalimantan. These women are trained to transform non-recycled agricultural and plastic waste into craft products, such as purses, artificial flowers and tote bags. In Dumai, we provide assistance to Putri Tujuh weaving group, who produce beautiful Siak traditional weaving cloth.
Started in late 2012, together with our partner, we established a program of which the main objectives are to increase the income of local coconut famers and coconut and palm sugar processors in seven villages in Penajam Paser Utara Regency, East Kalimantan, through the applications of good agriculture and processing practices. The program had provided benefits to more than 280 and nearly 1,000 direct and indirect beneficiaries, respectively. Some 40 small businesses have successfully increased their income through the reduction of production costs, product diversification, and better product quality.
We helped establish small and medium enterprise centers in Rumbai, Duri, Garut, Balikpapan and Penajam Paser Utara, which serve as trading houses and business consulting centers for more than 400 micro and small enterprises.
We promote conservation efforts in our Salak geothermal operations to prevent further exploitation of the forest. We support small and medium-sized enterprises by offering training to improve farming practices, which has increased the harvest. In 2009, we helped established three local cooperatives in Salak, one of our geothermal operations areas. In five years, the cooperatives have provided loans to over 3,000 micro businesses, with value over $500,000.