PT Semen Indonesia (Persero) Tbk together with its subsidiaries also contribute to the community’s welfare improvement. We realize this commitment through the implementation of corporate social responsibility (CSR), which refers to Law No. 40/2007 and Government Regulation No. 47/2012, as well as Law No. 25/2007 on Investment. As a state-owned enterprise, the Company also carry out the Regulation of the Minister of State-Owned Enterprises No. PER-08/MBU/2013 on Partnership Program of State-Owned with Small Businesses and Community Development Program.
Community Investment Program 2014-2018
In the last five years (2009-2013) Semen Indonesia has carried out several social programs as a commitment to implement sustainable business and compliance with aspects in the document of Analysis on Environmental Impact (AMDAL). For the next five years, Semen Indonesia has established a Community Investment Program (CIP) 2014-2018, which refers to the latest provisions at the national level on social welfare, public services and social and environemntal responsibility. CIP is prepared as a document of implementation guidelines and provides a corridor for program implementation as well as room for participation and adaption.
CIP program will include the master program: Semen Indonesia “BERSINERGI” (Together with Semen Indonesia Educated The Nation), with four main pillars, such as :
Semen Indonesia Cerdas;
Semen Indonesia Prima;
Semen Indonesia Lestari;
Semen Indonesia Peduli.
The CIP 2014-2018 of Semen Indonesia answers the key issuess raised during consultation. In addition, various data/information from the company’s business plans, report of studies and reviews, regulations as well as plans/priorities of central and local governments (including AMDAL), changes in the political and social context, and lesson learned from the past to be used as consideration. CIP document is developed through discussion and consultation on the draft document by involving experts who bring best practices and lessons learned from the Company’s operations in other areas. During 2014, Semen Indonesia allocated more than Rp 310 billion funds for CSR implementation, an increase of 0,9% compared to Rp 307 billion in 2013.
Organizational Structure of CSR
The Company has an organizational unit structure that handles the community development program, namely CSR Departement overseeing Partnership Program Bureau and Community Development Bureau (PKBL). CSR Department is under the supervision of President Director. Community development practices are supported by organizational structure based on Decree of PT Semen Indonesia (Persero) Tbk Number : 0001/Kpst/Dir/2014 regarding Organizational Structure of the Company.
Our initiatives do not rest on CSR performance, but we move towards the sustainability concept, which refers to the ISO 26000 guidelines and the standards set by the National Standardization Agency (BSN). Therefore, we conducted an evaluation of the operating system and the Company’s performance in accordance with ISO 26000 principles.
There area three groups of community that become the focus of CSR implementation by Semen Indonesia and each of its subsidiaries:
The village is locaated around the plant.
The village is directly affected by the operation of the plant.
The village is located arround/near the plant.
The villages around the plant that are not directly affected.
Afected villages/passed by plant facilities/equipment.
The villages affected by the plan/program of the minig area expansion.
The village that are not directly affected and not affected by plant expansion plans, but the transport line for the company’s purposes.
The approaches are carried out through various program/services, building relationship, and community empowerment. The target of the programs/activities is the development of social environment and economy, which is expected to improve their welfare in accordance with Human Development Index (HDI) and the Millenium Development Goals (MDGs). Currently, the Company also preparing for the Sustainable Development Goals (SDGs), which will continue and renew the MDGs initiative by the end of December 2015.
Becoming a Motor For Local Economy
Since the beginning of activities, we determine to make the plant’s presence in an area bring benefits to the surrounding community. One of the efforts is to involve them as workers, including in the construction of the plant in Rembang Regency, Central Java by PT Semen Gresik.
During the working period of project, the number of workforce involved was 3,817 people. At the post-project, the workforce involved reached 1,177 people. Most of them are residents in the surrounding area of the plant. In addion, with the involvement of local companies as vendors, the Company will absorb more workforces from the surrounding communities. The indirect economic impacts would multiply as the consruction and operations of the plant will boost other economic activities, including transportation services, property, culinary, hospitality, and so forth. The positive impact will drive local economy and add sources of income and increase prosperity of surrounding community.