PTBA realizes our significant role in economic social development for the environment where the company operates and community empowerment. The role of the Company in sustainable development is a commitment that is always implemented in order to advance and develop the potential of the community. According to Law No. 40 of 2007 regarding Limited Liability Companies, this commitment is commonly referred to as Social and Environmental Responsibility.

Corporate social responsibility is a policy that is implemented in order to find a balance point between the company and related parties such as the community, government and consumers. In this case, companies are not only looking for profit, but also pay attention to what social impacts can be caused by their existence, operating activities or investment.

As a coal mining company, which means that it is directly related to the use of natural resources, the company is committed to considering the indirect economic impact on the community and the surrounding environment in each of its business operations and in considering its investment. With this commitment and responsibility, the Company’s presence in the community and as part of a sustainable development agent can be exercised in harmony and balance with the environment, needs, values and culture of the surrounding society. [103-1]

Infrastructure Investment and Service Support [203-1]

Realizing the importance of infrastructure needs in sustainable development, the Company annually implemented various infrastructure development programs. Infrastructure is one of the factors supporting the economic growth of a region. With the existence of quality and complete infrastructure, such as roads, bridges, schools, houses of worship, health facilities, it will make an area not only to have economic access but will also improve human quality through improving the quality of education, health and religious activities. In addition, other infrastructures invested by the company also have a significant impact on economic development indirectly.

Through CSR program, the Company received numbers of infrastructure development donation proposal. The Company strives to always accommodate aspiration and needs of our stakeholders. Therefore, the submitted proposal will first be evaluated and selected by involving stakeholders and done in bottom-up approach.

During 2020, PTBA has made several social infrastructure investments that have had an indirect economic impact and supported progress for the people who benefit from it. These investments include: [103-3, 203-1, 413-1, 413-2]

1. Low-Standard House Renovation and Clean Water Infrastructure Provision
As a manifestation of the Company’s concern for the surrounding environment, especially in locations that are in direct contact with the Company’s operational activities, the Company invests by providing assistance to the community to repair Low-Standard House Renovation and Clean Water Infrastructure Provision and to build clean water facilities. During 2020, improvements have been made to 25 uninhabitable housing units and clean water infrastructure. The total investment value for the house renovation and provision of clean water facilities achieved IDR720,000,000.

2. Construction of Solar Irrigation Pumps
In 2020, the Company provides another Irrigation Pump assistance which is used as a power generator for the community in order to encourage the optimization of their agricultural production. The beneficiaries of this assistance are the people of Trimulyo Village, Tegineneng District, Pesawaran District, Lampung Province. The pump used is a submersibble type pump. The electricity generated by the pump is 35,000 watts, with an area of 167 ha to be flowed. This project is collaborating with the Lampung Provincial Government which will participate in providing assistance in the form of this tertiary irrigation channel.

3. Construction of a Solar Power Plant (Solar Cell)
The company invested by establishing a Solar Power Plant (PLTS) which was given to schools managed by the Az-Zawiyah Foundation of Ogan Ilir Regency. The electricity requirement needed to meet the school’s electricity needs is 5,520 watts. Meanwhile, the electric power generated by the PLTS construction is 6 kWp or the equivalent of ± 6,849 watts. With the electric power produced, the school’s electricity needs will be fulfilled and can even help supply electricity to several houses around the school.

4. Construction of the SIBA Center
The SIBA Center was built by utilizing a former coal stockpile area of 1,500 m2 . Recently, 10 (ten) SIBA housing units have been built in SIBA Cente which are intended for SIBA Rosella, Bukit Asam Coffee, Fashion (Knitting, Batik and Songket), Convection, Management, Nurseries, Bonsai, Carpentry and Fisheries. This development becomes the Company’s investment in improving the standard of living and economic level of the surrounding community, especially for the SMEs.

Significant Indirect Economic Impact [203-2]

Concrete benefit of PTBA’s existence has been receied by the society through the CSR programs implementation. Throughout 2020, PTBA carried out several activities with significant indirect economic impact and support progress of the society. The activities are among others: [103-3, 203-2, 413-1, 413-2] [6.c.3)c)]

1. SIBA Center as SME Central Incubator
The construction of the SIBA Center can be said to be a follow-up to the Bukit Asam Industrial Center (SIBA) program which up to now consists of several business fields including Manufacturing, Culinary Services, Bokhasi, Batik, Songket, Knitting, Coffee, Rosella Products, Nurseries, Printing and others. The construction of the SIBA Center is a form of company concern for MSMEs and the SIBA business groups.

The development of SIBA Center aims to increase development and empowerment programs for communities around the company’s area and to become a business incubator center that can carry out business development functions and new product development for local society around the company. In the future, SIBA Center is expected to become one of the destinations for entrepreneurship learning as well as tourism that can increase the economic value of Tanjung Enim society

2. Bukit Asam Rosella Industrial Center
This program is the woman empowerment through the establishment of the SIBA Rosella socio-economic institution which optimizes the cultivation of rosella plants and the production of various processed derivatives into healthy products. The superior products of SIBA Rosella are Rosella Tea and Syrup which have high Vitamin C content and are good for boost immunity.

The main subjects of this program are 30 (thirty) women from the Kelurahan Pasar Tanjung Enim, Lingga, and Keban Agung. SIBA Rosella has a production and product development center for their business in SIBA Center, Lingga, Muara Enim. Part of the land in the SIBA Center, covering an area of 2.000m2 , is also used as a demonstration plot (demplot) for 3.000 roselle plants.

In addition to covering the empowerment aspect, this program is also expected to contribute to the prevention of the spread of COVID-19, because processed products derived from rosella are expected to be a healthy food and beverage choice for people in the pandemic era, so that they will provide added economic value to subjects of the program.

The achievement of the Social Return on Investment ratio value from this program is 1: 4.22. This ratio means that every IDR1 invested in the SIBA Rosella CSR program will generate a social impact of IDR4.22 The SROI ratio is fairly large because the SIBA Rosella program is a social and environmental program that begins with the number of wild rosella plants that have not been utilized properly until they eventually become various derivative products that produce many health benefits.

3. Distribution of Food Packages
Some of the programs carried out by the Company include routine distribution of basic food packages in the PTBA Ring I Area (Lawang Kidul, Tanjung Agung, Muara Enim, East Merapi and West Merapi Districts). In 2020, the distribution of 9,000 basic food packages will be carried out in to celebrate PTBA’s anniversary, Ramadhan 1441 Hijriyah as well as support in the era of the COVID-19 pandemic. The pandemic situation has prompted the Company to suppress the implementation of activities that invite the masses, so proactively, the Company holds routine Friday blessing activities by directly visiting orphanages in the vicinity, in order to carry out friendship and provide assistance for basic necessities and basic necessities for them.

4. Public Health Services
One of PTBA’s activities with significant indirect economic impact is in the public health sector. This activity aims to improve the quality of life of the surrounding community while maintaining a clean environment so that it is able to present a healthy and clean environment. The programs that have been implemented are including:
• Balitaku Smile Program, which is a program to provide additional food for children under five and pregnant women in collaboration with the local government with a total assistance of IDR136,280,000. This program aims to reduce the mortality rate for babies and mothers who give birth.
• Health services through mobile health cars, blood donors, health education, free circumcisions and prosthetic limb assistance.

5. Education and Training Program
Education and training is one of the main keys in improving people’s lives. PTBA’s education and training programs for the community have had a significant indirect economic impact on the community. The total cost disbursed for Education and Training activities in 2020 is IDR20,001,227,080. The following are some of the activities that PTBA has carried out through educational programs at the academic level and training programs for people of productive age, including:
1. BIDIKSIBA Scholarships are financial assistance provided to underprivileged people to continue their education at the higher level, such as D3 / S1. In 2020, PTBA sent 50 (fifty) students to continue their studies at Sriwijaya State Polytechnic and Malang State Polytechnic. These fifty students were selected from 285 participants. BIDIKSIBA participants who passed this selection will be given full assistance until completing their studies. The Realization of BIDIKSIBA aid program in 2020 is IDR4,922,930,200. It is hoped that with this BIDIKSIBA program, the level of community human resources, especially Ring I PTBA, will increase and be accompanied by economic progress, because many BIDIKSIBA children have worked in BUMN and PTBA subsidiaries.
2. Higher Education Scholarships for the sons and daughters of the Indonesian National Armed Forces in collaboration with PT Pupuk Srijawaya Palembang as a form of appreciation for the achievements made by the TNI and Polri so far. The value of assistance provided is IDR365,000,000.
3. Other skills training such as BTC Mechanic Training, Freshwater Fish Cultivation Training, Financial Reporting and Cost of Production Training, roselle cultivation, and other programs.