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:
- Real income level or employment;
- Economic self-reliance;
- Creation of opportunities for local communities to participate in sutainable management of mining communities livelihoods;
- Establishment of institutions in communities to support CDE self-reliance;
- 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;
- Household management;
- 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.
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.