The Adaro Foundation (Yayasan Adaro Bangun Negeri – YABN) pillar, the only non-profit oriented pillar of the Adaro Group, was established in 2009 to coordinate CSR activities of AEI subsidiaries for the best implementation and outcomes. Through CSR, the companies can interact with and get closer to the communities. The communities need the support from the companies’ resources to improve their living standard and the companies need support from the communities so that the operational areas are safe, comfortable and conducive for the operations without disturbances, which is crucial for business continuity. The close relationship with the communities makes it possible for the companies to identify the needs and best community empowerment programs to create self-sufficient communities during and even after the group’s operational period, which is the main objective of AEI’s CSR activities.

Ultimately, YABN aspires to leave the legacy of positive changes in five main aspects: economy, education, health, socio culture, and environment, and therefore chose the name Adaro Ignites Change (locally Adaro Nyalakan Perubahan), to target the five aspects, with the slogan Adaro Ignites Education (or “Adaro Nyalakan Ilmu”), Adaro Ignites Welfare (or “Adaro Nyalakan Sejahtera”), Adaro Ignites Wellbeing (or “Adaro Nyalakan Raga”), Adaro Ignites Diversity (or “Adaro Nyalakan Budaya”), and Adaro Ignites Life (or “Adaro Nyalakan Lestari”).

The portions allocated to the five areas are adjusted to the current condition to ensure that the activities hit the right targets. Because the COVID-19 pandemic still lingered on in 2021, most of YABN’s CSR programs were focused on the health aspect for COVID-19 prevention and handling and economic aspect for the surrounding communities to keep their welfare in the mid of restrictions due to the health protocols. For the health aspect, the Adaro Group provided resources to overcome the limited health facilities in its remote operational locations and participated in the activities conducted by the regional government and the stakeholders for reducing the transmission and expediting recovery of the people infected with COVID-19. For the economic aspect, the activities were focused on the economic recovery for the communities through the support for mentored MSMEs and strengthening of the entrepreneurship capacity to optimize the resources available in the surrounding for the communities’ economic security.

Adaro Ignites Change

The vision of AEI’s CSR is declared in its sustainability vision statement: “To achieve a prosperous, intelligent and self-sufficient society in a sustainable environment”. To achieve this vision, the company has drawn up its sustainability missions:

• To empower the communities in an inclusive manner based on local potentials and needs towards a productive society who has characters and ability to self-develop;
• To support the sustainability of the Adaro Group’s businesses by building and strengthening community- based institutions as agents of change in the fields of education, economy, health, socio-culture and environment;
• To build partnership with stakeholders at both local and national level; and
• To support the government’s key programs implemented with the Adaro Group’s operational areas.

In implementing the CSR programs, the Adaro Group prioritizes ethical actions to achieve better living standard for the communities through programs that can harmonize their needs and the business operations for creating shared value (CSV).

Adaro Ignites Change is pursued through a set of initiatives classified into five main programs, which represent their respective area: Adaro Nyalakan Ilmu, Adaro Nyalakan Sejahtera, Adaro Nyalakan Raga, Adaro Nyalakan Budaya, and Adaro Nyalakan Lestari. In 2021, through its subsidiaries, AEI spent Rp94.3 billion to fund the activities of Adaro Nyalakan Perubahan, which consisted of:

• Adaro Ignites Education: Rp31.7 billion
• Adaro Ignites Welfare: Rp8.8 billion
• Adaro Ignites Wellbeing: Rp48.6 billion*)
• Adaro Ignites Diversity: Rp4.2 billion
• Adaro Ignites Life: Rp1 billion

*including national aid for COVID under Adaro Berjuang untuk Indonesia, totaling Rp42.2 billion

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