Indonesian Political, Business & Finance News

~FOR CSR EDITION -- SUNDAY -- Sept. 4

~FOR CSR EDITION -- SUNDAY -- Sept. 4

Helping the needy through CSR programs

Debbie A. Lubis Contributor Jakarta

Although the awareness towards the importance of Corporate Social Responsibility (CSR) program is still relatively low, a number of Indonesian companies have started to include the program in their business agenda.

A number of companies such as PT Coca-Cola Indonesia, mobile phone distributor Nokia Mobile Phones Indonesia, Bank Central Asia (BCA) and Citibank, have begun to develop CSR activities as an integral part of their business activities.

These kind of companies generally implement their CSR by providing assistance in the fields of education, health and environment protection. Many natural resources-based companies have also paid more serious attention in the CSR activities, which are mostly carried out under their community development program.

PT Coca-Cola Indonesia, for example, has implemented nation- wide CSR program through its Coca-Cola Foundation Indonesia (CCFI).

"For Coca-Cola which has operated in Indonesia for more than 70 years, and social activity has sincne become an integral part of the business system," said Titie Sadarini, the Corporate Affairs Director of PT Coca-Cola Indonesia.

In education, CCFI focuses its activities on developing educational programs for children and youth. Since September 2000, CCFI has transformed 24 libraries in 14 provinces to become learning centers. Since 2002, IT facilities are available in seven learning centers and in three other centers this year.

The foundation also gives health education, especially about HIV/AIDS to teenagers in Jakarta, Bandung, Surabaya, and Yogyakarta in 2003. Around 80 teenagers have been trained as Peer Educators and now actively disseminate information on HIV/AIDS to the teenagers.

In environment, CCFI launched Indonesian Biodiversity program for children in 2002. It has published a series of books on Indonesian Biodiversity that are donated to the learning centers as well as public and school libraries.

In addition, all of Coca Cola branches in the country have their own community development programs, which among others include free medical services at the company's clinics, mass circumcision, scholarship for local children, access to clean water, blood donation, and charity for local community.

To empower small enterprises, Coca-Cola System provides Micro Enterprise Development Program that is implemented in Cikarang, West Java (in 2003-2004) and Surabaya, East Java (2005)

When tsunami struck Aceh, Coca-Cola System also gave emergency relief support. Like Coca Cola, Nokia Mobile Phones Indonesia, has also developed a good system in its CSR program. Nokia has launched a program called Nokia Connects with Nature to increase the awareness and understanding of young people on the importance of nature conservation.

Together with Yayorin, a non-governmental organization (NGO), Nokia Indonesia has organized educational field trips for students living in Pangkalan Bun, Central Kalimantan. The two- year program, which would last this year, involves 20 students in each field trip. Under the supervision of Yayorin, the students study and explore the Tanjung Puting National Park in Central Kalimantan, visit an education center and observe the life of orangutans at Camp Leakey in Tanjung Puting.

The program aims to increase awareness of the need to protect the forest and all of the creatures in the national park, especially the orangutans. A series of environmental-themed competitions and activities, including a poster-drawing contest, an environmental debate and an environmental cleaning competition, were held as part of the program.

To realize its commitment to grow together with the community and environment in a sustainable manner,

PT Unilever Indonesia is also among the pioneers of CSR in Indonesia. In late 2000, the company Yayasan Unilever Peduli (YUP foundation) in order to carry out its CSR activities more affectively. The foundation focuses on four main programs that include developing small and medium enterprises, environment program, program on public health education and program on public relations.

Together with Yogyakarta-based Gajah Mada University, the foundation provides technical assistant to farmers in East and Central Java in planting black soy. It also provides good quality seeds and interest free loan to the farmers. The company then buys the harvest as the raw materials for its soy sauce.

As of today, there are 2,500 farmers involved in the program, working on 400-hectare land, said Okti Damayanti, General Manager of Unilever Peduli Foundation.

Unilever also cooperates with the farmers to breed water fish, which is the raw material for its seasoning product Royco. It also is also utilized to produce liquid seasoning without mono sodium glutamate (MSG).

The foundation also assists the residents of a village in Jambangan subdistrict, Surabaya, East Java to manage household waste and improve their sanitation. Together with government institution, NGO, academicians, community and private sectors, the foundation educate the residents on how to separate organic and non organic waste, make fertilizer from it and also recycle products. It also encourages the community to lead a healthy life by building public toilet and providing some trash cans as well as garbage transporters. This program gave PT Unilever runner up position in the Environmental Excellence Awards from Asian Forum on Corporate Social Responsibility.

Unilever has actively conducted program on health education for public, such as Lifebuoy Shares Health, Pepsodent Initiative for Dental Health, Integrated Health Promotion Program, which collaborates with Yogyakarta Chapter of the Ministry Health, as well as local NGOs and media.

The campaign on dental and mouth health has been conducted at 7,000 elementary schools in Jakarta, Bandung, Semarang, Surabaya, Medan, Palembang, Banjarmasin, Pontianak and Makassar.

Nickel producer PT International Nickel Indonesia (Inco) has developed a number of community development (CD) programs to help the people living near the company's mining sites in Sorowako, South Sulawesi.

One of the company's main CD programs is to improve the skills of high school graduates living near its mine areas so that they will be qualified to work with the company

At least 140 senior high school graduates from Nuha, Towuti and Malili and other sub-districts close to Sorowako have taken part in the program which was firstly launched in October, last year. At present, 75 percent of the 3,400 people hired by PT Inco are residents living near the company's mining sites.

PT Inco's CD programs in the education field also include the provision of scholarships and research funds for students of Hasanuddin University, Makassar.

The company's people empowerment program also includes the improvement of the local villagers' farming skills, by providing trainings. In addition to trainings, PT Inco also provides farming equipment to the local farmers.

Besides education, the company's CSR programs also cover many other areas such health and public infrastructure facilities.

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