Corporate Social Responsibility (CSR)

The company is an organization which in its aim has a goal beyond the description of just earning profit. The Company routinely runs various corporate social responsibility programs, which aim to support nation building, contribute to creating and building community welfare, and environmental preservation.

Through the Social Responsibility activities, the Company is committed to demonstrate that as a good company, it can run a more holistic approach, be proud of its primary business, while minimizing any negative impacts that may occur from the decisions and operations of the Company.

Legal Basis

The Company’s CSR activities depart from the Company’s own vision and are also a form of compliance with legal and statutory provisions, which refer to:

1. Law No. 25 of 2007 concerning Investment (Article 15);
2. Law No. 40 of 2007 concerning Limited Liability Companies (Articles 66 and 74);
3. Law No. 32 of 2009 concerning Environmental Protection and Management;
4. Government Regulation No. 47 of 2012 concerning Social and Environmental Responsibilities of Limited Liability Companies;
5. Law No. 13 of 2011 concerning Handling of the Poor (Article 41).

Responsibility Towards Community

To strengthen the Company’s existence and maintain its reputation as a caring entity, the Company provides tangible contributions to society by carrying out various social activities as follows:

• Paving roads in residential areas near the factory;
• Construction of a harbor bridge in Pulau Atas;
• Renovation of houses of worship such as mosques and churches in the surrounding community;
• Providing free education for kindergarten and early childhood students by building schools;
• Distribution of basic household necessities;
• Financial assistance for religious activities in surrounding communities;
• Daily supply of clean water for residents around the factory;
• Health assistance;
• Construction of irrigation channels in Bukuan Village, Palaran, Samarinda;
• Financial assistance for sports and art activities;
• Material assistance for residents in events such as weddings, community gatherings, and other social needs;
• Distribution of basic food supplies to orphanages and needy foundations;
• Active participation in humanitarian aid for earthquake and tsunami victims in Lombok, Palu, Sigi, and Donggala.

Responsibility Towards Environment

The Company’s commitment to environmental sustainability is realized through the application of high standards in its production processes, covering aspects of air, water, soil, natural resources, human resources, and the interconnection among these components. In accordance with the Environmental Management Plan (RKL) and Environmental Monitoring Plan (RPL), the Company manages environmental impacts such as air pollution, liquid waste, and solid waste through the following measures:

1. Waste Water Management
   • Monthly testing of wastewater by an external laboratory;
   • Reuse of treated wastewater from IPAL for washing Glue Spreader machines;
   • Settling wastewater from Wet Scrubber Boiler 3 before discharging it into drainage channels;
   • Recording of daily discharge volume and pH of production wastewater and sedimentation water;
   • Monitoring temperature deviation of boiler cooling wastewater.
2. Air Pollution Control
   • Collection of dust and wood particles using Dust Collectors for boiler fuel;
   • Use of Multi Cyclone and Wet Scrubber systems to control stack emissions;
   • Regular maintenance of Wet Scrubber and Dust Collector systems;
   • Monitoring combustion efficiency to prevent harmful exhaust emissions;
   • Provision and use of PPE such as masks for all workers.
3. Solid Waste Management
   • Reuse of wood waste and sawdust as boiler fuel or industrial materials;
   • Sorting and collection of scrap metal for return to workshops or sale to recyclers;
   • Disposal of plastics and other solid waste at designated final collection points;
   • Provision of labeled waste bins throughout the factory area for waste segregation.
4. Hazardous Waste (B3) Management
   • Temporary storage of hazardous waste (B3) in licensed facilities for a maximum of 90 days;
   • Quarterly delivery of B3 waste to licensed third parties with official manifests;
   • Preparation of hazardous waste reports and balance sheets through logbook documentation.
5. General Environmental Management
   • Collection and sorting of waste by category (metal, wood, paper, plastic);
   • Active communication with the surrounding community regarding environmental programs;
   • Regular reporting of environmental management activities to relevant authorities on a monthly, quarterly, and semester basis.