Social Responsibility

APP community programmes can be separated into three very distinct areas, defined by our operations and the needs of the communities in which our operations have their greatest impact. We defined as mill-level CSR, forestry-level CSR, and APP/Group-level CSR.

To  achieve  sustainable  positive  benefits,  APP  carries out  community  empowerment  activities  that  refer  to  the achievement of Development Goals (SDGs). The achievements of SDGs are inter-connected with the sustainability context of APP.  SDGs are a world development framework  containing 17 goals with 169 measurable achievements and deadlines established by the United Nations.

APP’s  steps  in  realizing  community  welfare  that  are  in  line with the SDGs include:

Our mill programmes are run locally by our dedicated mill CSR teams, tailored to the needs of the local community requirements within the areas we operate. Forestry community programmes are developed and managed in tight collaboration with our fibre suppliers, designed to integrate into wider sustainable forest management plans and enhance forest protection. The third set of programmes are led at a group level and are strategically designed to support the wider sustainable development goals of APP and Indonesia.

We work hard to increase the number of people who receive benefits from social program through increased effectiveness of programs planning and implementation with our partners and supporters. Our approach to forestry community projects, in particular, changed considerably in 2016 as we shifted focus towards tightly integrating community projects with forest protection with a more participatory approach.

All APP mills and all 38 fibre concessions have undertaken individual social impact assessments. We ensure each mill has integrated their programmes with local government planning to maximise positive impact. The results also provide an input into the social requirements for PROPER Green standard


Mill’s CSR

Guided by our group level Sustainability and Stakeholder Engagement team, our mills are free to design and implement their own CSR programmes in response to local needs and in line with government development. Our diverse operations mean a common approach is not possible, each mill must carefully consider the local population, economics and the challenges unique to their situation and respond accordingly.

APP  carries  out  social activities  to  improve  the  community’s  welfare,  especially those living in the vicinity of the mills’ area. Each mill develops a five-year strategic CSR plan, informed by social impact assessments integrated with government data and planning policies. On an annual basis, each CSR projects is planned - within the context of the five- year strategy - implemented and evaluated against a clear set of indicators. Recommendations for improvement are fed back into both the five year strategy and annual planning process as required.

Indah Kiat Perawang developed Microfinance institution “Rumpin Abdul Wahid”, a financing institution for Small Medium Enterprises (SME) and farmers living around the mill area. The goal is to improve agriculture practices, and provide commercial guidance to SMEs. Additionally, through a local farmers’ group, the mill’s sustainable agriculture program aims to provide training, mentoring, soft loans and capital to enable the community to produce better yields, manage risks and achieve better prices for their produce.

Indah Kiat Serang developed a circular economy concept that focused on improving the quality of education available to the local community through utilisation of a majorwaste stream. The mill CSR team identified poor quality infrastructure and furniture was negatively impacting the quality of education amongst schools within the mills vicinity. Working in collaboration with local government and village authorities a scheme was developed to use waste wood containers from the mill to build desks and chairs. Carpentry training, equipment and facilities were provided to establish the programme. Since the project began in 2012, 2,680 students have benefited from new desks and chairs, youth employment opportunities have been provided and the schools no longer must allocate budget for furniture, enabling them to allocate this budget elsewhere. The mill also benefits in a similar way; reduced waste handling costs increase the budget available for other CSR programmes.

Lontar Papyrus has also focused on supporting local educational needs. The mill has enabled a local school to become financially self-sufficient and cover the buildings running costs through a business selling water to the local community. Water is collected from the school well, processed through a UV light system and then sold as safe drinking water. The future is to expand the business into selling bottled water, establish a savings and loans business through a financial cooperative and a motorcycle repair business.

Ekamas Fortuna’s Social Impact Assessment has triggered programmes to support economic empowerment, improve educational facilities and promote environmental conservation. All projects are based in and around the Gampingan village nearby. A community waste bank was set up, to provide additional income and to raise awareness - in the village and in local schools – about responsible waste management. Other programmes include a community library, a women’s farmer group, a fishery and a handicraft SME. The projects are often visited by external parties such as universities and government departments to learn about community empowerment.

Community  empowerment  programmes  to  improve  welfare are also conducted at Indah Kiat Mill, Tangerang. At the mill’s locality, APP provides assistance in catfish farming. There are two groups receiving the assistance, the Karang Taruna youth group of Pakualam Village and Business Group of Pakulonan Sub-district. This assistance is conducted in collaboration with South Tangerang Fisheries Agency.

Meanwhile, OKI mill is also involved in development, especially in the education in Ogan  Komering  Ilir  (OKI)  Regency. Education  is  one  of  the  prioritized  development  sectors  in OKI  Regency  development  in  South  Sumatera  Province. This  program  is  named  “1  Village  1  PAUD (Pendidikan Anak Usia Dini/Pre-school education) Program,” with  the  objective  of  increasing  the  quality  of  children’s education.  To  further  support  education,  OKI  mill  helps to  build  the  PAUD  buildings  and  facilities.  The OKI mill  has committed to help build 60 PAUD buildings in villages around the OKI regency.

You can read our full corporate social responsibility policy document here. You can aslo find more on our commitment on Corporate Social Responsibility in the following link  English and Bahasa.

14.08.2019 | Asia P.
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