Community Income Empowerement

The Company has run a sustainable economic development in the operation area. Along with the socioeconomic partnership with the stakeholders, especially the local communities.

The company has facilitated economic empowerment by providing a variety of employment opportunities which are the work of the building construction, transportation services in plantation or factory activities as well as the development of communitybased financial institutions.

During 2017, the Company has run a partnership program with more than 20 types of partnerships involving more than 200 local businessmen with diverse intensity, in the form of cooperatives, individuals, village institutions, and others.

This partnership includes the transportation of oil palm fruit, palm oil, kernel oil, empty bunch, fertilizer, and others including the construction of supporting facilities, such as kindergarten, multipurpose building, maintenance and road maintenance.

In addition, the Company has also provided a scheme of limited soft loan for local businessmen as well as training and mentoring. The Company has built partnership with 30 farmer cooperatives surrounding plantation areas.

The Company ensured that production from partnership plantations contribute to and community gardens can be a supply chain for the production of sustainable palm oil.

The company continues to commit the development of partnerships with plasma farmers and support them through an open and responsible consultation and technical guidance which involved competent sources, such as cooperatives institutions from the government and tax and financial consultant.

The Company has facilitated the establishment and development of community-based financial institutions in the forms of credit union (CU), which are CU Mitra Mandiri and Blom Bea Ling in operation area Muara Wahau, East Kutai and CU Satu Hati in Bulungan, Bulungan Region, and CU Pandulangan Bersatu in Bulik District, Lamandau Region.

These credit unions are expected to be capable of increasing literacy capacity as well as financial services and social communities to maximize their potential and opportunities.

As of September 2017, total assets of Credit Union Mitra Mandiri reached 28,7 billion Rupiah consisting of 2.032 members. While CU Blom Bea Ling total asset reached around 15 billion Rupiah, consisting of 1.033 members.

The Company continues to support sustainability of the agricultural, fishery, and household economic activities, such as through training, comparative study, provision of seeds, and technical guidance, as well as buying of cultivation results for employees needs. This activity is expected to add income from activities outside of which related to plantations and palm oil mill as part of efforts to improve communities income.