Sustainability Governance Environment Social NZE Statement Sustainability
Reports

SOCIAL

Under Social, Adaro Group recognizes that our people are our greatest assets. Given the scale and complexity of our business, it is important to place focus on strengthening our employees’ development to effectively operationalize ESG and sustainability within the Group. Furthermore, we understand the need for Adaro Group to support and empower our local communities. Therefore, we aim to continuously improve our performance in improving livelihoods. The focus areas under the Strategy Pillars are: ‘Empowering Local Communities’ and ‘Looking after Our People’.

EMPOWERING LOCAL COMMUNITIES

Adaro Group’s business generates both positive and negative impacts on both environmental and social aspects. An Environmental and Social Impact Assessment (ESIA) is carried out at the planning stage of all Adaro Group’s business activities to be able to discern the potential impacts that may arise from the Group's activities. The study involved representatives of the community and village apparatus from villages around the operational area that could potentially be affected by the Group's operations. Their involvement was mainly via public consultations. A social mapping study has also been made involving relevant stakeholders. Adaro Group has carried out various social initiatives that have involved and reached women and other marginal categories which were included in the social mapping results.

The CSR program initiatives carried out by the Adaro Group are based on the results of the social impact assessment and social mapping studies which are periodically updated to ensure suitability for the conditions of the surrounding community. CSR programs are designed by aligning the communities’ needs with the local potential and Adaro Group’s businesses to create shared value (CSV approach). In 2017, Adaro Group, through the Adaro Foundation (Yayasan Adaro Bangun Negeri – YABN), came up with a new CSR flagship, which also represents its main mission, namely: Adaro Ignites Change (locally known as Adaro Nyalakan Perubahan), as Adaro Group aspires to be the agent of change in the regions where it operates for better living standards. Adaro Ignites Change consists of five target areas, each of which represents an important aspect of life.

These are several of our intiatives and performances during 2022:

292 scholarship awardees in South Kalimantan and Central Kalimantan Province through the Indonesia Bright Future Leaders (IBFL) program. The scholarship covers education cost, living cost, settlement cost, accommodation cost, health cost, mentoring, and internship

  1. Dayak Deah Desa Liyu, a coaching program for a traditional village through the Adaro Ignites Culture program. The program shows significant results whereby the village received an IDM (Indeks Desa Membangun) status of developed village in 2022 with IDM score of 0.7552 from the lagging village status in 2019 with IDM score of 0.5257.
  2. The CSR program has covered 100% of the Adaro Group’s operations and is carried out within the five pillars of Adaro Ignites Change, which has been and is being implemented in all districts where the operational area is located, and especially in Ring 1 of the operational area.
  3. 30 Years of Work, Adaro Shares for the Nation

    In commemoration of its 30th anniversary in 2022, Adaro Group distributed 30,000 basic food packages for the underprivileged. This is motivated by the condition of rising fuel prices which triggered an increase in the price of necessities. Adaro Group aimed to lighten the burden of the underprivileged in seven provinces which are Adaro Group's operational areas: DKI Jakarta, South Kalimantan, Central Kalimantan, North Kalimantan, Riau, Central Java and East Java Provinces.

    In its implementation, the Adaro Group cooperated with Rumah Zakat, Pundi Amal Peduli Kasih Foundation, and Metro TV as partners for the distribution of basic food packages. We also involved students receiving IBFL scholarships as volunteers, Adaro-assisted Islamic boarding schools to prepare and distribute in several areas, as well as subsidiaries in each distribution area.

LOOKING AFTER OUR PEOPLE

Adaro Group has developed its occupational, health and safety (OHS) policy, established in 2016, which applies to the whole group. In developing this policy, we aligned it with the Company’s vision and mission as well as considering the scale and risk of OHS to ensure all OHS aspects are covered.

AEI is an integrated mining and energy company. AEI pursues its vision of becoming Indonesia's leading mining and energy group by continuously expanding and enhancing its coal mining and non-coal mining operations to create a complete supply chain from pit to power plant. The integration of AEI certainly has risks related to quality, occupational health, safety, and environment (MK3LH). These risks need to be managed properly so that operations can run smoothly and safely.

The management of AEI's MK3LH can be likened to a building consisting of foundations, pillars and a roof. As the foundation are natural resources (coal reserves), human resources (technical and management capabilities), financial resources, and completeness of business permits

HUMAN CAPITAL DEVELOPMENT AND MANAGEMENT

Human resource excellence is a part of our strategy to enhance Adaro Group’s competitive advantage. Adaro Group’s respect for diversity is shown by providing equal opportunities for every individual regardless of their sex, age, race, gender, and disability to continue to develop. Diversity is an important element in human resources as we believe that each employee has unique potential that can be combined to become a maximum driving force for AEI. Adaro Group is committed to recruiting, developing and retaining people who are professional and with integrity. The Adaro Group also opens career paths based on the best performance of employees according to the Meritocracy principle in Adaro Values. With a corporate culture based on the values of “IMORE”, we continue to prepare high-quality future leaders, namely those who have outstanding competencies in their respective fields accompanied by good professional and ethical character.

Last modified on October 24, 2023, 4:00 pm | 3499