Move Forward Hand-in-hand with the Communities
KPC plays a part as a catalyst in local development process. In order to urge self-reliance of the local area, especially in villages around mining area, KPC formulated seven program areas in 2003 in which its implementation is based on the target of development area, starting from regency state to villages by considering national and international issues. These seven program areas consist of:
- Improvement of the Government and Society Institutional Capacity Building
- Improvement of Sanitation and Public Health
- Improvement of Education and Training
- Development of Agribusiness
- Development of Micro, Small, and Medium Enterprises
- Nature and Culture Conservation
- Improvement of Infrastructure
The Synergy between Mine Closure Plan with the Community Development Strategic Plan
KPC believes that our presence in the heart of the East Kutai community should be able to provide benefits not only in the period of mining operations, but also after the mining operation period.
The preparation for post-mining period has always been an important issue that underlies all of our conducted programs. The approach in community empowerment has been our focus in order to support self-reliance of the local area, especially in villages. The existence of self-reliant villages in managing all of their potencies in community interests will directly contribute to wider self-reliant area.
The potency of post-mining land utilization has been implemented in pilot projects for fishery, gardening, and others. In 2013, all of those activities have involved Yayasan Sangatta Baru in their management. This involvment was conducted as one part of mine closure scenario, as well as, one phase in building cooperation with societal organizations, such as village-owned enterprises, Cooperatives, and other enterprises. Until now, KPC’s land utilization that has been conducted are Integrated Cattle Farming (PESAT) that is included in Agribusiness programs and natural tourism in Telaga Batu Arang which is included in Nature and Culture Conservation programs.
Capacity Building of Village Administration and Community
KPC’s awareness on increasing the capacity of local governments and communities can be seen from Village program. These programs strive for stronger villages so that they are able to serve and fulfill all communities’ needs gradually, as well as, discover and develop all potencies owned in order to increase their productivities. In developing the productivity, we support the increase of productivity of both the existed village-owned enterprises (BUMDes) and those that were just initiated in villages that surround our mining area.
Independent Village development initiatives in the villages surrounding the mine is a strategic step in preparing the Village Administration and Community in responding to mine closure plan. The Independent Village development is started with a pilot project in four villages of four sub-districts around the mine. We work closely with the Government and the College of Rural Community Development (STPMD) of Yogyakarta as a facilitator in order to fulfill the five components of an independent village. The five components are governance, development, economy, basic needs, and society.
Village-owned Enterprises - BUMDes (Badan Usaha Milik Desa)
Strengthening the capacity of the economic sector is one of five components in achieving independent village. KPC urged the establishment of BUMDes in collaboration with government agencies since 2010. Until December 2015, 25 villages in four districts (Rantau Pulung, Bengalon, North Sangata and South Sangata) in the ring 1 has formed BUMDesa. Some types of businesses that are running include the water treatment / drinking water, management of rural electricity, savings and loans services, provision of Agricultural Production Equipment (saprotan), eco-tourism management, composting, spawning bream, transportation services, culinary, collection of services parking fees, the cultivation of oil palm plantations, production of mineral water in packaging, digital printing services, oil palm breeding, and management services of Multifunction Building.
Improvement of Public Health and Sanitation
The quality of sanitation and public health correlates directly with welfare. In the implementation of communities empowerment activities, KPC cooperated with various parties in order to support government in increase the sanitation and public health, especially that of around the mining area.
The implementation of sanitation and health programs also contributes to the achievement of the Millennium Development Goals (MDGs) which is also a reference to the Local Government and Central Government
The programs that are going to be implemented include a contagious diseases prevention, improvement of mother and child's health, health care assistance for the underprivileged, improvement of public awareness of health issues and health.
Improvement in Health Infrastructure
Kutim Cemerlang or Cerdas Merata Prestasi Gemilang is government’s program in East Kutai that is supported by KPC. We help run the program by providing scholarships and educational aids, as well as, increasing its quality of education and its infrastructures. In addition to formal education, additional programs in schools as well as training that is conducted together with Job Training Center is carried out in order to increase competitiveness of local workforce. Several educational activities include:
- Scholarship – Paving the Way to Achieve Dreams (Meretas Warna Meraih Asa)
- Improvement of Sanitation and Public Health
- Indonesia Junior Achievement (PJI)
- Educational Infrastructure
- Student Skills Competition (LKS)
- Vocational Student (SMK) Competency Test Program
- Mechanical Apprenticeship Program
In order to support East Kutai Government’s long-term development plan, we conduct agribusiness development programs, namely Gerdabangagri (Local Movement of Agribusiness Development). The main aspects that become our concern are natural resources, human resources, and market opportunities which should be aligned.
Facilities that we provide were capacity increase by providing various training and comparative study, granting of stimulants and training to farmers, as well as special scholarships to Bogor Agricultural Institute and the College of Rural Community Development to outstanding students in four districts around KPC mining operations. We expect that with this agribusiness development, we are able to contribute to local community’s productivity which is one component of self-reliance village.
Integrated Cattle Farm (PESAT)
Post-mining land utilization programs that have been undertaken since 2008 are now entering a period of production trials by involving Yayasan Sangata Baru (YSB) with its business unit, namely PT. Yakin Sukses Bersama (PT. YSB). The resulting products include fresh milk and other dairy products, as well as small scale cattle fattening. Network to meet the needs for a variety of food will also continue to be developed in order to increase local transactions and decrease dependence of food from outside the area. PESAT was designed to support the achievement of national beef self-sufficiency.
Single-Seasonal Crops Cultivation Development
This is one of KPC’s concerns, especially in Bengalon Subdistrict. These activities can absorb unskilled labor, as well as contribute to food self-sufficiency that is aligned with vision and missions of one pilot project of Independent Village. Some villages have been able to become a producer of vegetables such as South Sepaso, West Sepaso, and Main Sepaso. West Sepaso has now become the largest producer of watermelon in Bengalon. In order to respond food security issue, the development of paddy rice in South Sepaso is still being encouraged to increase its productivity by applying the SRI method.
Farm cultivation program provides performance and significant achievements both on the capacity of farmers, the ability of the cultivation as well as marketing of farm products. In the poultry industry, a group of farmers in Bengalon District have grown to become one of the major chicken producer in East Kutai.
Proud achievement was obtained by KPC's chicken cultivation assistance, KT Manual Bakti, which has become the champion of East Kalimantan provincial level for the category of local poultry farmers, and in mid-2015 established as a national champion in the same category. Thus, the Department of Agriculture Livestock of East Kutai and Indonesian Local Poultry Farmer Association assigned Bengalon District as Comunity Farming Center (SPR) "Bakti Mandiri". SPR Bakti Mandiri is expected to become the frontline in the management and development of kampung chicken farm in Bengalon and East Kutai.
Local Rice Crops Conservation
Development of mountain rice crops is very important for food security in Bengalon sub-district. For that reason, KPC continues the mountain rice crops conservation efforts. In 2013, the conservation efforts are implemented by distributing of local varieties of mountain rice seed for an area of 20 hectares in Segading Resettlement area. Varieties developed are mayas, gedagai, lemongrass, lahong, sesat jalan, mas, and turmeric.
Development of Micro, Small and Medium Enterprises
Micro, Small, and Medium Enterprises (UMKM) is a business that can involve a great deal of communities. KPC gives special attention in its development which is related to mining operations, as well as, development which is targeted to sustainability which maximizes the use of local potency and available market opportunities.
Olsabara – Sangatta Souvenirs Center
Olsabara, as the packaging house that was founded in 2013, has done a lot of local products marketing and at the same time serves as a center for souvenirs in Sangatta. Olsabara has the interest to increase local productivity through a variety of domestic industries by encouraging competitive business environment. Olsabara has 4 functions in the strengthening of local products which are souvenirs outlet, business clinics, home packing, and trading.
Development of Processed Food Industry
Assistance in this factor is performed as a part of the Olsabara existence. The development of the food processing industry that has been conducted includes Amplang Bengalon, Sugar Ants (Gula Semut), and Banana chips, ginger powder, Rambak crackers, Sambal Pecel, and others. This food processing industry is mostly performed by women, so it is one part of women empowerment in East Kutai.
Development of Wakaroros Pattern Batik
Wakaroros pattern comes from Dayak Basaf which is applied in cloth through batik work and the use of ironwood as natural coloring material. KPC’s support in this business development helps preserve cultural legacy of Dayak Basaf’s batik patterns. This product has always been one of the main products on display in various exhibitions.
Rattan and Wood Handicraft Business Development
Some of the products developed under this program are woven rattan handicraft, and woodcarving. The development of this handicraft industry will increase the potential of the local culture, and not only improve the local economy but also at the same time preserving the local culture.
Natural and Cultural Conservation
Several natural and cultural conservation issues, such as community-based waste management, Kutai National Park preservation, and eco-tourism development which involve communities, have always been our concerns. Nature Lovers Communication Forum which was formed at the end of 2012, throughout 2013, held as many as 17 travel packages with PESAT, Kampung Pinang, Telaga Batu Arang, several locations in Kutai National Park, such as Teluk Lombok, Teluk Kaba, Teluk Perancis, Caves in Teluk Pandan, and Muara Sangatta as travel destinations. This activity directly benefited transportation and consumption providers, homestays, and the local community.
Telaga Batu Arang Natural Tourism
Telaga Batu Arang, which has a land area of about 200 hectares, has been used as a community-based tourism. In the Mine Closure Plan (RPT) document of KPC which has been approved by the government in 2011, the area was identified as a buffer zone of Kutai National Park. The concept of community-based travel management is, in addition to provide alternative sites, Sangatta citizens are also projected to provide maximum benefit to the community.
The availability of infrastructure for public use directly helps increase the convenience of services for communities. Together with subdistrict government and village administrators, KPC keeps developing synergies in developing various public facilities around our mining areas. This support is also aligned with village development plan to achieve its self-reliance. There were 6 infrastructure projects in 2013.
Forum Multi Stakeholder for Corporate Social Responsiblity (FMSH for CSR)
This forum was established by the East Kutai Regent (Bupati) in 2006 with a Regent Decree No. 71/02.188.45/HK/III/2006. Through this forum, we also provide assistance in the form of policy guidance, work procedures, and with maximum program or project controls. This forum is also responsible for monitoring the progress of the program, as well as ensuring the granted funds to be utilized properly. To support the management of this forum, we hold regular meetings between KPC and the forum secretariat members.
CSR Funds Realization and Allocation
The total of KPC’s CSR funds realization in 2015 was IDR 62 TRILIUN. These funds were allocated to five fields, namely: Community Empowerment, Community Relations, Infrastructure Development, Operations, and Human Services.
Community Feedback System
In building a good relationship between KPC and the community, it is necessary to have an open communication from both sides. Through this means, KPC took the initiatives to establish a management of community complaints due to the mining process. Through Community Empowerment (CE), KPC is managing such complaints in a system called the Community Feedback System (CFS).
Throughout 2015, there have been sevente critical complaints stemming from two operational areas of KPC, which are Bengalon and Sangatta. In this year, the complaint criterias are dominated by water-related complaints (output of the mine water management, river water quality, clean water quantity) and social conflicts from different cases compared with the previous year. We have successfully managed and resolved all of these critical complaint cases.