Community Economic Empowerment
The Company has carried out sustainable economic development in its operating areas. Along with socio-economic partnerships with stakeholders, especially communities around the operating areas.
The Company, on an ongoing basis, facilitates community economic empowerment by providing various opportunities to be involved in operations, including in the implementation of construction works, transport services in plantation and mill activities and the development of community-based financial institutions.
As of 2017, the Company has implemented more than 20 forms of partnerships involving more than 200 local entrepreneurs with various intentions, be it cooperatives, individuals, village institutions and others.
These partnerships include the transportation of oil palm fruits, palm oil, kernel oil, jangkos, fertiliser and others as well as construction works including employee housing and maintenance of roads connecting villages and plantations.
In addition, the Company has also provided a limited soft loan scheme for local entrepreneurs as well as facilitation of study tours, training and mentoring. The Company has established plantation partnerships with around 30 community co-operatives around the plantation area.
The Company ensures that the production of partnership plantations can be part of a sustainable palm oil production supply chain.
The Company continues to be committed to developing plantation partnerships with communities and supporting them through consultation and technical guidance in an open and responsible manner by involving competent parties, including the cooperative office and tax and financial consulting service providers.
The Company has facilitated the establishment and development of community-based financial institutions in the form of credit unions (CU), namely CU Mitra Mandiri and Blom Bea Ling in Muara Wahau District, East Kutai Regency and CU Satu Hati in Tanjung Palas District, Bulungan Regency and CU Pandulangan Bersatu in Bulik District, Lamandau Regency.
It is expected that the existence of these credit unions will be able to increase the capacity of financial literacy as well as financial and social services of the community in managing potential and utilising existing opportunities.
As of September 2017, the total assets of CU Mitra Mandiri reached approximately 28.7 billion rupiah, with 2,032 members. While the total assets of CU Blom Bea Ling reached approximately 15 billion rupiah, with 1,033 members.
The Company consistently supports the sustainability of strengthening agricultural cultivation, fisheries and household economic businesses, including through the provision of training, comparative studies, provision of seeds, and technical assistance as well as purchasing cultivation products to fulfil employee needs. This activity is able to increase income sources from activities outside those related to plantations and palm oil mills as part of efforts to increase community income.