In Indonesia, most children finish no more than 5 or 6 years of elementary school although the law requires 9 years of mandatory study. Even with 9 years, children, who often crowd into classes of 30 or 40, end up with little more than basic knowledge. A vast percentage of the Indonesian population is severely restricted in their capacity to contribute productively to the welfare of their families and their communities, let alone to the development of their country.
Indika Energy believes that providing access to quality education for all children and skill training for the people living in our operational areas will trigger a ripple effect. With communities empowered to leverage useful knowledge and understanding of important issues, in particular sanitation, hygiene and good nutrition, they will achieve better health and be able to apply what skills they have learned to work productively; thus ensuring better educations, improved health and more viable community empowerments for the generations to come.
Indonesia faces constraints in educating its people, especially in rural areas where infrastructure is poor and there is a dearth of well-educated quality teachers. For that reason, Indika Energy became a co-initiator and founding donor in the Teach for Indonesia Movement (Gerakan Indonesia Mengajar), which placed 293 young teachers in 17 regencies and districts across Indonesia to provide education for 21,192 children in 2010-2012 when Indika Energy significantly contributed as the sole donor of the program.
This program has achieved significant results nationwide for children within the formal education system, as well as having a butterfly effect on entire communities through targeted extracurricular activities, parent-teacher meetings and community education. In Kalimantan, the initial placement of teachers has led to emulation of the program in more and more communities.
In addition, Indika Energy has been cooperating with the Karya Salemba Empat (KSE) Foundation in the University Student Scholarship Program, which is designed to assist college students who have financial difficulties by granting two kinds of scholarships: Regular Scholarships that cover cost of learning and living, and Research Scholarships that fund applicative research that can improve community welfare. Since 2011 Indika Energy awarded scholarship to 238 students from 11 universities in Java and Kalimantan.
As well, Indika Energy provides educational assistance through the Educating the Nation’s Children (Indika Energy Cerdaskan Anak Bangsa) program, which provides scholarships for the children of its employees studying in elementary, junior high and high school, whose academic performance is above average. This program, which was launched on November 2012 in commemoration of Indika Energy’s 12th anniversary, provides hope for future prosperity through generations in our operational areas. Currently, we have more than 189 students who have received the scholarship.
Applying Lessons Learned
Throughout our years of mining operations, Indika Energy, which employs as many locals in our operations as possible, has come to understand that providing work is only a small part of what we can do to fulfill our role as a good corporate citizen in the communities around our mining areas. Enhancing the educations and skills of our employees, their children and other members of the community is also vital to contributing as positively as possible.
Indika Energy believes that one of the joys of learning is applying new knowledge and skills successfully. For children in rural Indonesia, learning their ABCs and 123s provides a motivational jumping off place for continuously adding to their knowledge and skills to escape the long-entrenched paradigm of poverty in their home regions and embark on a journey to a brighter future.
We are convinced that education is key to addressing existing problems in communities and empowering positive change, and will continue to support community development through education.
Only 24.5 percent of Indonesia’s rural population has access to potable water, while only 56.5 percent has access to sanitation facilities. Not surprisingly, the mortality rate for children under the age of five is 31 per 1,000 live births, while 2.2 out of every 1,000 women face the risk of dying in childbirth (The World Factbook, March 2014).
Indika Energy believes that poor educational levels and lack of viable community empowerments are linked integrally to the health issues facing Indonesia today. For that reason, health is a major concern within our business operations and in our approach to community empowerment around us.
In this connection, Indika Energy has collaborated with the Indonesia Confederation of Workers Unions (Konfederasi Serikat Pekerja Seluruh Indonesia, KSPSI), which began with the opening of a clinic in Pasar Minggu, South Jakarta, in February 2010. In 2011, a second clinic, which has the capacity to provide 400,000 workers with healthcare services, opened in Cikupa District, Tangerang Regency. Indika Energy business units also provide health care for workers and communities in operation areas.
Education toward Health
Indika Energy believes that synergy in our CSR activities on education, health and community empowerment has the capacity to improve the overall welfare and well-being of the communities in which we are present. Children in the local community schools are taught the basics of hygiene, sanitation, and good nutrition, along with their science and other pertinent subject matter.
We are convinced that this approach offers a key to ensuring a healthier, more productive workforce and communities well into the future.
Good Health toward Productivity
A healthier population means individuals and communities who can work and develop their regions optimally either through employment at our operations sites, or through knowledge and skills gained through schooling, as well as training and targeted community development programs that can open up more job opportunities toward greater prosperity.
Overall, Indika Energy’s CSR programs for education and health link together in powerful synergy that ensures that the basic knowledge of hygiene, sanitation and good nutrition enables workers and their families and other people in the local communities to maintain better health on an individual and community level. These improved health conditions result in healthier children who can study more effectively and are more likely to continue their educations to become viable members of the Indonesian workforce.
Thus, better education and improved health support not only Indika Energy’s operations, but also enable individuals and who communities to work productively and support themselves in the long run.
Indika Energy thoroughly understands that assisting communities to improve their quality of life means helping individuals to leverage quality education toward improved health and increased productivity toward economic independence.
Therefore all of Indika Energy’s CSR programs are aligned with its business strategies toward sustainable operations that encompass the need for educated, healthy and productive workers and communities. Community participation is one of the core factors in achieving all of this.
Indika Energy’s community economic empowerment programs are based on the idea that helping people help themselves is the fastest way to help them achieve more solid financial footing and the ability to support themselves independently and sustainably.
This is done, as is the case with all of our CSR activities, by determining what the communities need within the context of our long-term strategies toward sustainable operations that benefit all of our stakeholders. Once this is done, it is simply a matter of working with the community to develop programs that target their aspirations and enable their achievement.
Indika Energy and its subsidiaries have accomplished this through the provision of specific self-help training and targeted economic enrichment CSR activities.
Meeting Needs Productively
In the Indika Energy Group, our subsidiary Petrosea has set a benchmark for CSR activities by establishing the Community Small Business Group (Kelompok Usaha Bersama, KUBE) in Sukamaju and Mulawarman Villages in the Kutai Kartanegara area where Santan Batubara operates. KUBE provides assistance to communities surrounding operational areas by improving their welfare by providing targeted training to members of the communities, such as sewing classes and the provision of sewing machines that enable individual community members to set up garment production centers that supply uniforms for mining sector workers.
Another Indika Energy subsidiary, MBSS, has established the Stevedores Cooperative (Koperasi Tenaga Kerja Bongkar Muat, TKBM), and routinely provides internship training for people living in communities surrounding the area of its operational sites.
These programs and others like them can initiate and facilitate the establishment and maintenance of sustainable community empowerments among individuals and communities well into the future.
Toward Long-Term Prosperity
Geographically, Indonesia, with its myriad islands, is one of the most vastly spread out countries in the world. It is also one of the most rapidly developing economies in the global communities of nations.
Within this context, Indika Energy knows that local communities can benefit immensely from corporate support. For this reason, Indika Energy consistently strives to make a difference not only through maintaining the company’s longevity as an employer, but also through educating and training individuals to start up their own economic activities.
The development of the education, health and community empowerment programs within Indika Energy’s CSR framework is geared toward community independence, self-sufficiency and sustainability for the long-term. The goal is minimum support from the company to carry on programs that create a sense of ownership of among communities who will continue to identify and address basic needs to enable people to develop viable community empowerments for their benefit and that of their families and others in their community for many generations to come.