Corporate Social Responsibility

Corporate Social Responsibility (CSR) Program as one of the program that realized the Company’s responsibility towards the environment and the surrounding communities. The Company always strives to improve the quality and scope of the existing CSR programs with their respective variety and excellence, in the fields of environmental protection, education, health, economic empowerment and disaster response. All of the Company’s subsidiaries have demonstrated their synergy in implementing CSR programs to have a meaningful impact for the beneficiaries.

To ensure that the Company’s CSR programs bring measurable and sustainable results to the community, the Company synergizes with central and regional governments as well as other stakeholders to develop and to empower the surrounding communities affected by the mine’s coperation to be benefited from the Company’s business activities in their areas.

The Company carries out community empowerment activities within the framework of Master Plan for Community Development and Empowerment Program (“RIPPPM“) which refers to the Decision of the Minister of Mineral and Energy Resources No. 1824K/30/MEM/2018 with regards to the Guidelines for Implementation of Community Development and Empowerment (“PPM“). PPM programs are designed to provide added value and tangible benefits in order to improve the quality of life of the community as well as to become a sustainable program that can be managed independently by the community.

The Company and its subsidiaries: PT Citra Palu Minerals, PT Dairi Prima Mineral, PT Gorontalo Minerals carry out mapping and group discussions with the community to request input/aspirations/expectations of various elements of the community, including the local government, traditional leaders, religious leaders and other parties who care about economic and social aspects. The mapping of economy, social and environment aspects are aligned with the programs and policies of the local, provincial and district governments to avoid overlapping programs to be more effective, efficient and targeted. PPM program budget allocation is according to the needs of the community to be sustained in order to achieve self- sufficient and prosperous community. Reports on the use of budget allocation and budget plans (RKAB) are transparently communicated to the local regional government and to the central government through the Ministry of Energy and Mineral Resources.

PPM program implementation cycle includes monitoring and evaluation so that PPM program is aligned to support the mine operations plan, and is able to create self-sufficient community. It is expected that by the time the program ends, the community is able to conduct economic activities based on renewable resources and not dependent on the mineral mining sector. In addition, through PPM program, which is focused on the community directly affected by mining operations, it is expected the quality of the relationship and cooperation of the Company with all stakeholders can be improved.

Potential PPM program for sustainable development will continue to be developed. Economic and social mapping, such as: natural resources of agriculture, plantation and agriculture, food industry, manufacturing and services will be carried out and harmonized with the Company’s PPM program that refers to Mine Closure Plan. The Company designs a strategic program based on the location affected by the mine and implements PPM program based on the results of identification and impact analysis that has strategic and added value for the Company, the government and the community. The total cost of the Company’s PPM programs in 2019 was USD472,554 included the empowerment of local contractors and vendor.