CSR Activity

10 March 2016

CJPP activities are not merely profit oriented, however it also concerns on sustainability and development of the community. Integrated all the social and community development programs are implemented to build a sustainable community particularly in CJPP surrounding areas.

Social and community development program for the affected people in CJPP surrounding areas are executed in the form of direct supports, which implemented through Corporate Social Responsibility (CSR) programs. CSR Programs of PT BPI are sustainably implemented on several areas, such as Economy development, Health, Education, Infrastructure, Socio-culture, Religion and Environment All of these supports are given in the form of direct support, infrastructure support, skills development as well as capital support.

The arrangement and preparation of CSR programs is always based on study and data of the pattern of need of the affected people, input from community and local government. The implementations of CSR programs are collaboration between PT BPI, PT PLN (Persero), Batang regency, affected community and partners through resources allocation and contribution. The CSR programs however are not replacing the role and responsibility of government; instead it is all strengthening the government’s development programs.

During the implementation, the implementation principles of CSR programs in this project are as follows:

Appropriate with the local needs and socio-culture behavior, based on potency of the region and market as well as supporting government’s policies.
The implementation of CSR program is always monitored and evaluated to ensure that the target is achieved.
The CSR programs is done transparently, accountably, well-documented and sustainably, also it focuses on participative approach and improving people capacity.
It is adapted and cooperated with programs from Batang regency with priority, strategic, partnership and resource sharing.

Meanwhile, the primary objectives of the CSR program is to build a sustainably and independent community which able to:

Capable in terms of economy so therefore able to fulfill the basic family needs, without depending on other party.
Capable in terms of intellectual in order to handle problems in the family as well as community to always interact positively to the global development
Have optimal Human Resources to compete with the other communities.
Have an organizational capability to organize and coordinate with other communities.

PT BPI CSR activities are implemented and realized through primary activities, as below:

Economic Development

Focus on economic development is implemented through forming several Community Business Group (KUB) which facilitate community to develop several Independent Micro Business Group. This business development is not only a development on variety of type of business, but also improvement for quality of result process. In addition, the economic development is primarily concerned on partnership principle with micro capital support through Micro-financing institutions (LKM). Through these two activities, it is expected that entrepreneurship can be improved and create several new job fields.

The Formation of Community Business Group (KUB) and Micro-Business Group (UKM)

Community Business Group (KUB) and Micro-Business Group (UKM) which supervised and monitored by PT BPI is improving in every year. By end of 2015, there are 85 KUB in 9 villages in surrounding CJPP area with total of members reaching 1,416 members (Table 1and Image 2 Amount of KUB Members based on location). In other words, this formation of KUB is not only limited to affected villages but also other village in Batang regency.

Table 1 KUB Members in Batang Regency that formed by PT BPI

Table	2013		2014		2015		Total
Table	Members	KUB	Members	KUB	Members	KUB	Members	KUB
Ujungnegoro	161	8	122	8	255	13	538	29
Karanggeneng	115	9	20	1	164	10	299	20
Ponowareng	164	12	30	2	70	6	264	20
Others	76	4	203	10	36	2	315	16
Total	516	33	375	21	525	31	1,416	85

Variation of type of business which is done by KUB covers several business area, namely farming, breeding, production and saving and loan.

Table 2 Type of Business of the Community Business Group

Type of Business	2013		2014		2015		Total
Type of Business	Member	KUB	Member	KUB	Member	KUB	Member	KUB
Tenant and Daily Farmer based on Bupati Decree					336	22	336	22
Goat breeding	108	9	26	1	17	0	151	10
Duck breeding	0	0	30	2	0	0	30	2
Saving and loan	214	12	195	9	83	4	492	25
Eel breeding	29	2	0	0	2	0	31	2
Catfish breeding	0	0	38	3	4	0	42	3
Catering and laundry	71	5	29	2	32	2	132	9
Seasonal farmer	63	3	0	0	0	0	63	3
Household and tailor	31	2	57	4	51	3	139	9
Total	516	33	375	21	525	31	1,416	85

Support of Micro Capital through Micro-financing Institutions (LKM)

Support of micro capital through Micro-financing Institutions (LKM) is purposed to improve development in business and partnership. Apart from support of micro capital, the Micro-financing Institution also encourage saving and loan activities. The number of members who received micro capital is increasing every year, reaching 4,021 members by end of 2015 (Image 4).

Activities of saving and loan as well as capital support is improving every year aligned with the increasing number of its members (table 6):

Entrepreneurship and business motivation training is also performed to support community (KUB members) to maintain capital as well as business and individual financial planning. Several activities are shown in Image 5, Image 6, and Image 7.

Image 5 Entrepreneurship training for KUB

Image 6 Training for Micro-financing Institutions

Image 7 Training for Entrepreneurship Motivation

Temporary job creation

Temporary job creation is performed by providing several skill training. By improving the skills, it is expected that community can be more productive to utilize the skill to create new business.

Several products made are bags, crackers, furniture, garments and several construction preparation works for CJPP.

Training for Grocery Bags making

This training has been done for 4 batches, with 99 participants from 20 KUB from 3 villages (Image 8).

Image 8 Training for Grocery Bags making

Training for crackers making

This training has been done in 4 KUB with 39 participants’ from 2 villages (Image 9).

Image 9 Crackers making training

Training for garment production

This training has been done through several activities, such as garment with 45 participants, as well as batik, wallet and bags for PT BPI merchandise (Image 10, Image 11, and Image 12).

Image 10 Garment making

Image 11 Batik making

Image 12 BPI merchandise making (wallet and bag)

Training for school furniture production

Has absorbed labor and facilitate current skills of the communities to produce school furniture (Image 13).

Image 13 Production of school furniture

CJPP Site Preparation for Construction

In preparing the construction of CJPP, PT BPI is also involving communities in civil works, such as land clearing, irrigation and other site preparation works (Image 14).

Image 14 CJPP site preparation

Health

In terms of health programs, several activities have been done with partnership with several parties. This activities are done to also support government’s program for instance to develop health activists in villages. Support for health facilities from PT BPI covers 8 villages involving 182 activists and 8 KUB. Details of CSR partners for health programs is explained as Table 1.

Table 1 CSR Partners for Health Programs

No	Partners	Health Centre (Village)	∑ Activists	Location
1	UPTD PUskesmasTulis	Simbangjati	15	Village Office
2		Kenconorejo	20	Village Office
3		WringinGintung	25	Village Office
4		Tulis	25	Village Office
5		Beji	20	Village Office
6	UPTD PuskesmasKandeman	Ujungnegoro	35	Health activist’s house - Rusmiatun
7		Karanggeneng	15	Health activist’s house - Winti
8		Wonokerso	20	Village Office
Total			175

Image 16 Training for Health activists

Image 17 Training for the competencies development for village doctors

Education

Education is the fundamental aspect to prepare the next generation in order to face the development of technology and global competition. Therefore, it is important to provide sufficient facilities as well as educational resources. This is the reason why PT BPI commits through its CSR to improve in the education area through realization of several education activities. CSR activities in education are done through formal education and non-formal education.

PT BPI CSR activities in education covers:

Support in study facilities and school (Image 18 Education facilities)
Scholarship program
Village libraries (Image 19);
Environment education program

Image 18 Education facilities

Image 19 Training in Library Management - partnership with PERPUSDA Kab. Batang & Coca Cola Foundation

Infrastructure

Good infrastructure is certainly needed to support communities’ activities. The development and renovation of infrastructure are done in several aspects, such as religious facilities, health facilities, education facilities and clean water facilities and others (Image 20, Image 21, Image 22, Image 23, and Table 2).

Image 20 Infrastructure Support by PT BPI

Table 2 Infrastructure Support by PT BPI

NO	PROGRAM	2012	2013	2014	2015	TOTAL
1	Clean water and public toilet	4	9			13
2	Mosque/religious facilities	6	21	5	10	42
3	Health facilities		2			2
4	Education Infrastructure	1	11		6	18
5	Others	2	1		4	7
TOTAL		13	44	5	20	82

Image 21 Renovation for Mosque

Image 22 School Infrastructure

Image 23 Bridge renovation

Socio-culture, Religion and Environment

CSR program in socio-culture area is not only performed through direct activities but also by giving education to communities, particularly with regard to environment. Programs in socio-culture, religion and environment, include:

Support in several cultural, religion and communities activities
Education in environment awareness
Restoration/afforestation activities

Image 24 “Clean-Friday” activities by PT BPI employees at religious site of Syeikh Maulana Maghribi

Image 25 Education on Environment Awareness to local students

Image 26 Reforestation in surrounding Sigandu access road