Our Commitment

Harum Energy is committed to enhance the standard of living of its surrounding community as the embodiment of one of its mission. The Company realizes, as a business entity it is inseparable from the surrounding environmental and social state. Therefore, the Company strives to provide beneficial impacts on the environment and the society through its existence.

The mapping of the Company’s CSR practices through Subsidaries refers to the policy and strategy of Community Development and Empowerment (CDE) as stipulated in the minister of Energy and Mineral Resources (MEMR) Regulation No.41 of 2016. CDE focuses on creating positive and sustainable who are the targets of Company’s CDE program comprise the communities around the operational areas, including the Company’s own employees.

The CDE policies and programs have been formulated based on following 8 pillars:

  1. Education;
  2. Health;
  3. Real income level or employment;
  4. Economic self-reliance;
  5. Socio-culture;
  6. Creation of opportunities for local communities to participate in sutainable management of mining communities livelihoods;
  7. Establishment of institutions in communities to support CDE self-reliance;
  8. Infrastructure development to support CDE.

 

SOCIAL RESPONSIBILITY TOWARDS THE ENVIRONMENT

The  Company  deeply  understands  and  is  committed  to the  importance  of  good  mining  practices  to  maintain environmental  quality  by  minimizing  the  adverse  effects  of mining operations. The Company has also continuously strived to  streamline  operational  processes  to  wisely  use  natural resources including energy and produce less operating waste for every ton of coal produced.

Environmental management practices in the mining areas are carried out by PT Mahakam Sumber Jaya (MSJ) in accordance with  the  procedures,  methods,  and  the  schedules  of  mining with the open pit mining system, as well as schedules of land clearing  in  accordance  with  the  mining  plan.  This  practice is carried out in accordance with the Environmental Impact Analysis (EIA) document that was approved by the Governor of East Kalimantan, as well as prevailing laws and regulations related to the environment.

Environmental  management  activities  by  MSJ  include land  clearing,  waste  water  management,  overburden decomposition,  stripping  and  stockpiling  of  land  cover, reclamation and vegetation, and management of hydrocarbon waste. Besides this, the Company also controls environmental aspects  in  the  mining  areas,  such  as  mine  water  quality, vegetation,  wildlife,  soil  erosion,  soil  fertility,  ambient  air quality,  generator  emissions,  and  initial  hue.  Assessment outcomes  of  each  aspect  are  continuously  compiled  by  the team in the field and routinely reported to Management and to the relevant authorities.

The  total  cost  of  implementing  the  Company's  social responsibility  towards  the  environment  in  2018  was Rp15.9  billion,  or  lower  than  the  expenditure  in  2017,  i.e. Rp18.3 billion.

The  implementation  of  the  social  responsibility  to  the environment  program  is  expected  to  minimize  the  adverse effects of the Company’s mining operations around its of?ces, mines and surroundings.

The Company’s concern for the environment is also shown by the application of international standards in operations. The application of these standards is periodically certified. In 2018, the Company received certification in the field of environment through  the PRATAMA  (Coal  Mining  Environmental Management  2017)  Award  which  was  presented  by  the Ministry of Energy and Mineral Resources on May 8, 2018.

 

SOCIAL RESPONSIBILITY FOR SOCIAL AND COMMUNITY DEVELOPMENT 

The Company realizes that the sustainability of its business activities cannot be separated from community participation. For this reason, the Company strives to continue to build good relations  with  the  community,  among  which  is  through  the implementation of CSR.

Some  of  the  CSR  programs  are  directed  towards  social  and community  development,  including  the  use  of  local  labor, wherein  the  Company  gives  priority  to  locals  around  its operational  areas  to  become  employees  in  accordance  with applicable  requirements  and  regulations.  In  addition,  the Company  also  routinely  conducts  Community  Development and Empowerment (CDE) programs.

Through its subsidiaries, the Company uses the Participatory Rural  Appraisal  (PRA)  and  Rapid  Rural  Appraisal  (RRA)methods  in  formulating  CDE  programs  each  year.  This method  is  used  by  involving  all  stakeholders  to  jointly  map the potential of a region or village and determine the program and priority scale of implementation. After the document that contains the mapping of village potential is rati?ed and agreed upon,  the  programs  that  have  been  planned  in  accordance with the mapping are also realized

The  Company  constantly  evaluates  the  CDE  activities  to determine  the  success  of  the  CDE  programs  as  measured by  improvements  in  the  quality  of  life  of  the  communities, the decline in poverty levels, and other positive aspects that are not measured on a quantitative basis. Evaluation is done every 3 months by the Community Development Team

The total cost of implementing social responsibility towards social and community development in 2018 was Rp5.1 billion, or lower than the expenditure in 2017 of Rp5.5 billion.

 

SOCIAL RESPONSIBILITY FOR EMPLOYMENT, OCCUPATIONAL HEALTH AND SAFETY

Employees  are  one  of  key  assets  in  the  implementation  of Company  operations.  This  factor  induces  the  Company  to continuously strive to improve the welfare of its employees, both within the work environment and in the overall economy, such as:

1. Job Opportunities and Gender Equality 

The Company provides equal employment opportunities to  both  men  and  women.  This  has  been  proven  during the  recruitment  of  new  employees  by  upholding  the principle of equality. The recruitment process is carried out  in  a  highly  transparent  manner  so  as  to  provide  an opportunity for each new individual to compete, join and have a career with the Company.

2. Occupational Health and Safety (OHS)

The Company has a high regard for OHS to ensure that every  employee  can  contribute  their  best  amid  the security  provided  through  the  application  of  strict  OHS procedures  in  all  operational  activities.  The  Company through  MJS  has  implemented  OHS  activities  which include:

a.   Safety talk, making rules and traffic guidelines, induction of mining safety to all employees and guests in the field, inspections, and routine safety meetings;

b.   Development  of  the  MSJ  Mining  Safety  Management System which is called the Mahakam Safety Management System (MSMS) and includes 7 elements, namely:

  •  Mining safety organizations;
  •  Personal,  electrical,  mechanical  and  construction protection gear;
  •  Traffic;
  •  Household management;
  •  Mining;
  •  Reporting accident incidences; and
  •  Procedure  for  investigations  and  emergency response.

 3. Education and/or Training

Employees  are  an  important  asset  of  the  company when  carrying  out  operational  activities.  The  Company endeavors  to  provides  the  best  education  and/or job  training  for  all  employees  at  every  level of the organization that aims to support the implementation of tasks and improve work professionalism. Through continuous development of competencies, the Company builds superior human resources and is ready to compete.

4. Remuneration

The Company rewards the performance of its employees. This  appreciation  is  manifested  in  the  form  of  monthly salaries and bonuses for achievers.

The  total  cost  of  implementing  the  Company’s  social responsibility  towards  employment,  occupational  health and  safety  in  2018  was  Rp4.3  billion,  or  higher  than  the expenditure in 2017 of Rp3.4 billion.

 

SOCIAL RESPONSIBILITY TOWARDS CUSTOMERS

The  Company's  customers  are  distributed  across  domestic and  international  regions.  The  Company  is  responsible  for providing products of the highest quality that meet customer demand, and to manage close relationships with them. Quality control in the Company is carried out thoroughly in all stages, starting from production, stockpile, transportation, shipping to customer ships, to after-sales service.

On back of these quality control efforts, the Company did not receive any material complaints from customers during 2018 regarding the quality of coal and other services provided.