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 Company’s CSR strategy takes into account the five Pillars of Community Development, namely Public Relations, Community Empowerment, Infrastructure Development, Operational Assistance, and Public Service. Thus each of the Company’s CSR programs can be categorized into one of those pillars. All of them are aimed at achieving a comprehensive community development. In 2014, total expenditures for the Company’s CSR programs reached Rp 5.5 billion.
In developing communities, a holistic method must be employed as the objectives are not simply of the material nature, but wider than that, namely to build social capital. Social capital is a collection of positive and organized behaviors pertaining to the community, which may be used as a tool for developing itself. Examples of social capital include religious holiday celebrations, yasinan, village-wide cleaning activity, irrigation (subak), youth activities, makepung, etc.
Empowerment means giving a chance, opportunity, and power to the community to secure new methods for fulfilling their needs and achieving a better standard of living. The major causes of incapacity are economic condition, low level of education, and poor health. That is why, in empowering the community, the Company’s strategy is prioritized in funding for programs in the economic sector (which will enable the community to develop their competitiveness and advantageous potentials), educational programs, and health programs.
A prerequisite for social development needs the existence of public facility and adequate infrastructure, as this will assist the community in developing itself to achieve a higher standard of living. It is of paramount importance for the community to have access to basic infrastructure, such as roads, clean water, healthcare, and electricity. The Company applies a community development concept that encourages people’s participation in all stages of the program, including in the decision making stage. The infrastructure development programs carried out under the Company’s CSR strategy include sectors of religious, educational, health, and agricultural facilities as well as other public facilities.
The Company realizes that the maintenance of public infrastructure requires regular funding. Through this pillar, the Company contributes to this effort with a hope that all existing services and facilities remain accessible to the communities that need them the most. However, in all occasion, the Company endeavors to generate direct participation from the community, instead of simply being passive recipients from those assistances.
Specific situations often arise within a community that render certain elements of the community unable to participate in program planning and execution. An example of such specific situation is one of force majeure. For that reason, the Company has taken an initiative to allocate part of its CSR funding to support the community should such matters arise. The Company’s role include providing assistance to the community especially to those affected by natural disasters, and active participation in environmental campaigns that involve the public at large.
Harum Energy performs its role as a steward of the environment around its operational area. Through its subsidiary, PT MSJ, the Company strives to preserve the environment around its operational area through the creation of a new post-mining ecology.
As a part of its environmental conservation program, the Company mitigates the impacts of its mining operations by managing its land clearing activities to prevent soil erosion, managing mining waste according to prescribed environmental standards, and implementing gradual replanting to restore the ecosystem back to its original state (prior to the presence of mining activities).
While carrying out mining activities, the Company always ensures that the negative impacts on the surrounding environment are minimal. To maintain water acidity, which may rise due to the presence of materials resulting from mining operations, the Company uses alum and employs the settling ponds. In addition, the Company collects hazardous and toxic waste such as used lubricant, used filters, packaging bottles, and grease, and delivers those materials to licensed contractors or stores them in a designated temporary storage facility within the Company’s area. Air pollution (SO2, NO2, and CO emissions, as well as dust level) and noise level due to mining operations are also managed. And in arranging and executing blasting operations, extreme care is taken during the use of explosives to ensure the safety of all parties involved.
As the Company seeks to be fully compliant with all applicable environmental regulations that are relevant to its operations, monitoring of certain environmental parameters is conducted regularly. Such parameters include waste water quality, ambient air quality, dust level, noise level, emissions level, lighting, vibration, soil fertility, as well as flora and fauna diversity. In monitoring air quality, the Company cooperates with the Environmental Research Center (PPLH) of Mulawarman University, Samarinda. The measurement results are reported to the Ministry of Energy and Mineral Resources.
In order to control the damage to the environment, and preserve its quality, the Company has intensively conducted the following:
- Increasing flora diversity by utilizing locally-sourced seeds.
- Encouraging the communities around the mines to plant trees.
- Developing a nursery for local plants.
- Increasing the number of land conservation programs to prevent soil erosion.