CORPORATE SOCIAL RESPONSIBILITY
The Company realizes that the business growth should be followed by social responsibility. Furthermore, the Company has a principle that implementation of corporate social responsibility, including social and community development as well as community empowerment is a commitment to improve its community well being through discretionary business practices and contribution of Company resources as well as principles of implementation of Good Corporate Governance.
Concerning with the Company’s social responsibility, during 2018 the Company had performed some activities in three pillar concept as follows:
The Company had implemented social responsibility in educational field, such as providing scholarship for outstanding highschool and university students, providing facilities and infrastructures for education of early aged children and sharing best practices in line with learning process in several universities in East Java in the form of conducting guest lecture, becoming the main supporter for several education seminars, welcoming university students visit to the plant, welcoming university students for job practices and job apprentices and also supporting several activities related to Early Childhood Education.
In field of environment, one of the Company’s main attention is focusing on environment sustainability whereas all the production process should fulfill the environment health aspect (green process) and produce the ecogreen paper products. As a Company’s concern to environment, corporate social responsibility is implemented through performing a variety of activities such as coordinating dispersion of fish seeds in River of Surabaya, planting tree seeds as an act of environmental conservation and reducing green house effect, participating in sea conservation and coral reef rehabilitation, also becoming the main supporter for some environtment seminars as earlier learning process for the students, as a supporter of several environmental related activities around river of Surabaya and as a supporter and participate in commemoration activities International Water Day.
Corporate Waste Treatment System
The Company practices good resources and to reduce pollutans, the Company waste water treatment utilize biological, physical and chemical treatments to ensure that the effluent discharged into the river meet government standard. The Company’s waste ater treatment utilises a hybrid system which consist of both aerobic and anaerobic treatment.
This system has ability to significantly reduce waste water pollutans more effectively as compared to the convensional system.
Based on evaluation of the Ministry of Environment and Forestry of Republic of Indonesia, the Company achieved the Blue level rating in Programme for Pollution Control Evaluation and Rating. This Blue level showing that the Company meets all relevant government environmental standards.
- Social and Neighbourhood Communities
The Company believes that the society environment ignorance will potentially create the society problem in further. One of the Company’s programs in implementing social responsibility for neighbourhood community is Community Development, which the program includes some activities such as:
- In health and improvement of quality of life, the Company participating in the providing clean water and electricity for lighting in the environment around Company’s factory, participating in routine and religious activities as well as helping to build worship houses in neighbourhood comunity, organizing blood donation event for the Company's employees twice a year.
- In community empowerment, the Company provides opportunities and guidance to the communities surrounding the factory to produce bricks, manage the parking lot, become entrepreneurs by providing goods and people transportation services and become entrepreneurs of catering services.
- In others, the Company conducting fasting break together with the orphans, provide assistance to victims of force majeure in several regions in Indonesia and also supporting some social activities which has been conducted by some social communities.
Even in terms of community development, the Company is no longer oriented to CSR which are charity programs only but rather a strategic program for the welfare of the community such as giving opportunity to do business in partnership program for people who lives around the Company’s plant.
The increasing of Company’s awareness at environment aspects and society will encourage the achievement of Company business goals that may run in continuity and balance with the environment surround.
Implementation of Corporate Social Responsibility (CSR) is believed to drive the Company to maintain more harmonious relationship with investors, consumers and suppliers, as well as with employees, government, social communities and its neighbourhood. This harmonious relationship with stakeholders is expected to be able to minimize its business risks, therefore CSR is considered as one of the Company’s strategies of risk management. For these CSR activities, every year the Company retain a budget up to 5% of net profit the previous fiscal year.
The total CSR funds of the Company throughout 2018 were as follows:
: Rp 272,122,000
: Rp 584,671,000
Social and Neighbourhood Communities
: Rp 324,361,000
: Rp 1,181,154,000
In line with CSR program, the Company keeps its efforts in creating healthy and safety environment from pollution, also keeps its efforts in developing friendly environmental production process. In 2018, the average emissions of COD and BOD in Company’s waste water amounted to 78 ppm and 17 ppm whereas this achievement did not exceed the waste water parameters set by government.