Corporate Social Responsibility (CSR) is activities in the vicinity of company that creates good impact for community, company & environment in order to achieve sustainable development.
CSR program is implemented based on below principles:
• Based on need, local socio-culture condition, area prospect and supporting government program
• Implemented with transparency, accountability, well-documented, sustainable and prioritize participatory approach
• Aligned with government program with urgent priority, strategic, partnership & resource sharing
In order to achieve sustainable development, CSR program has an objective to develop independent community with below characteristics:
• Economically empowered to be able to fulfill family basic need without being dependent to other party
• Intellectually capable & sufficient to solve family & community issues independently
• Resourceful optimally to compete and to cooperate with other community groups
D. Scope of Program
Until now, CSR program scope of work is implemented within five main activities:
1. Economic development
• Developing community business group/micro enterprise group (MEG)
• Developing Microfinance Institution(MFI)
• Temporary Job Creation
2. Supporting health quality increase program
• Supporting village health post program (Posyandu)
• Supporting increase of health services
• Supporting health infrastructure
3. Supporting education quality increase program
• Scholarship program
• Supporting education kit for school
• Supporting school infrastructure
• Village library (PERPUSERU) in partnership with Coca Cola Foundation Indonesia
4. Supporting community infrastructure program
• Supporting clean water installation & sanitation
• Supporting renovation of religious infrastructure (mosques)
• Supporting renovation of health infrastructure
• Supporting renovation of education infrastructure
• Supporting renovation of other public infrastructure
5. Supporting socio-culture & environmental activities
• Awareness program for clean environment
• Re-greening program
CSR Program has been implemented since 2012 with result up until December 2015 is described below detail:
A. Economic development
1. Developing community business group/micro enterprise group (MEG)
a. Development of MEG
85 MEGs have been developed that consist of 1,416 community members with diversified micro businesses of home industry, production services, saving/loan, services, animal farming & fishery.
MEGs have been developed in dispersed affected villages and majority of MEGs members are originally from the main affected villages of Ujungnegoro, Karanggeneng and Ponowareng.
b. Form of Support from BPI
Affected community from surrounding of BPI which joined MEG program has received BPI support in form of capacity building training, production equipment, business capital & technical assistance.
• Training support
BPI has implemented diverse training activities for MEGs members based on their preference & requirement.
• Supporting business capital & production equipment
Beside support in form of training & business capital, BPI is also supporting production equipment for MEG diverse business like sewing machine, mobile harvester equipment, catering & snack production equipment.
2. Developing Microfinance Institution (MFI)
In order to support community business development surrounding BPI, MFIs are developed to provide micro loan and other financial services for affected community businesses, as well as nurturing community saving culture. There are two MFIs development schemes. First is developing three MFIs in three villages of Ujungnegoro, Karanggeneng Ponowareng. The second is Grameen Bank model micro financing with Koperasi Mitra Dhuafa (KOMIDA).
a. Three saving-loan MFIs (cooperatives) in three villages
BPI has been supporting the development of three MFIs since 2013 up until now in form of MFI pre-development, permit, launching, series of training & other capacity building & technical assistance, in cooperation with LDP Bina Mandiri, Batang. Below is summary description of activity & achievement of three MFIs until 31 December 2015:
1. Three MFIs asset growth progress (in IDR billion).
2. Three MFI member progress
Three MFI members have been increased from time to time. Currently in total, three MFIs have 4.012
3. Level of community trust to MFI
One indicator of level of community trust toward MFI is the increased growth of community saving participation on three MFIs (in IDR billion).
4. Capacity building for three MFI continuously
One of the most important things in the development of MFI is capacity building for their staffs. All of three MFI staffs have been trained in series & diverse trainings from 2013 up until 2015 to increase their capacity to manage MFI. The trainings were:
a. Training of human resources development
Consist of training of personal development, team building, paradigm building & motivation.
b. Training of MFI operational management
Consist of training of MFI basic principle, financing management, marketing management, accounting, internal control system, MFI asset & infrastructure security management, business partnership & networking management, business plan etc.
c. Comparative study
Several comparative studies to well-established & well-succeed MFIs.
5. Training of entrepreneurship for MFI member
Starting on second operational year (2015), the three MFIs have conducted two batches of trainings for their members in form of training of entrepreneurship for MFI member who has current business activity.
b. Grameen Bank model micro financing in partnership with Koperasi Mitra Dhuafa (KOMIDA)
Complementary financial services for affected community with three MFIs in three villages, BPI is partnering with well-experienced and national-wide MFI Koperasi Mitra Dhuafa (KOMIDA) that specifically implementing financial service for poor women with Grameen Bank Model. The partnership has established KOMIDA Batang branch office in May 2013. Below is the implemented result until 31 December 2015
1. Financial services
2. KOMIDA member training
Besides serving micro finance for its member, KOMIDA is also providing technical assistance in form of training of health, entrepreneurship and financial literacy
3. Temporary job creation program
Community surrounding BPI that directly affected by BPI land acquisition is tenant daily famer and jasmine picker. Therefore, BPI provides opportunity beside become entrepreneur in MEG program, but also various kind of simple job that could be conducted by them in civil works or other available jobs. BPI will continue involve them
a. Work in CFPP location for affected farmer
Form of temporary job creation is land clearing, water channel installation & reforestation work.
b. Other supporting work
Form of temporary job creation is BPI merchandise production, BPI sign board and involvement as worker in BPI CSR infrastructure program.
B. Supporting health quality increase
1. Supporting village health post program (Posyandu)
• Supporting supplemental food (PMT) Implemented since 2013, BPI provided supplemental food for infant & senior community in 46 village health post (Posyandu) in 8 affected villages. Since 2015, through independent sustainability efforts from each village health volunteer, supplemental food requirement has been fulfilled by their income generation from saving-loan businesses.
• Supporting health equipment
Provided for village health volunteer & village midwife in 8 affected villages
2. Supporting health service increase by medical staff
• Training for village health volunteer in 8 affected villages in cooperation with Batang health office on regular basis.
• Training for 9 affected village midwives & 2 sub-district health offices in cooperation with Batang health office on regular basis
• Supporting health associated furniture for 7 village health clinics in 7 affected villages
C. Supporting education quality increase
1. Scholarship Program
Scholarship program is provided for school student from 25 schools in 10 affected villages, conducted through scholarship scheme of poor student, competent student & continuing study scholarships. Several scholarship programs were partnership program with PT PLN (Persero) and PT PII (Persero).
2. Supporting education learning kit
Supporting education learning kit is provided for 24 schools in 9 villages.
3. Supporting school education infrastructure
• Supporting Islamic school furniture for 15 schools in 6 affected villages
• Supporting IT system for 5 Islamic schools (Madrasah)
4. Village Library partnership program (Perpuseru)
PERPUSERU Program is partnership between BPI, Batang Library & Archive and Coca Cola Foundation Indonesia (through Bill & Melinda Gates Foundation), implemented in Karanggeneng and Ujungnegoro.
D. Supporting public infrastructure program
In total, BPI has supported 82 packages of various infrastructure supports program
1. Supporting clean water installation and sanitation
BPI has supported 13 packages of supports: 6 packages in Ujungnegoro, 5 packages in Karanggeneng, 1 package in Ponowareng, and 1 package in Beji.
2. Supporting mosques renovation
BPI has supported 42 packages of mosque renovation program: 6 packages in Ujungnegoro, 3 packages in Karanggeneng, 1 package in Ponowareng, and 32 packages in other affected villages.
3. Supporting village health clinic renovation & construction
Renovation of village health clinics in Ujungnegoro & Karanggeneng villages.
4. Supporting school renovation
5. Supporting other public infrastructure
E. Supporting Social-culture & environment
1. Replanting program
• Replanting program : replanting & seedling maintenance of 5 Ha reforestation area since 2013
• Mangrove Rehabilitation
• Replanting shading tree on coastal road of Sigandu-Ujungnegoro in cooperation with Batang district
2. Clean movement program
• On regular monthly basis since December 2015, BPI supports village health volunteer with community to conduct clean movement in 8 affected villages
• Clean movement program at Sheikh Maulana Maghribi sacred tomb by 120 students from 2 schools, in cooperation with UN Islamic youth association. Clean movement program continues to be conducted in other chosen locations.