Corporate Citizenship Projects at Indocement

Building Harmonious Relations with Local Communities

With an annual cement production of more than 18 million tonnes, Indocement is a dominant player in Indonesia’s cement market. Currently, around 250,000 people in 37 villages surrounding the company’s three big cement production sites are benefitting from numerous CSR projects. Most of the people have low incomes – many live in poverty. Indocement invests US$1.8 million per year in CSR activities supporting 300 different projects in six complementary areas: education, health, economy, social and cultural events, security, and sustainable development. 41 CSR officers from Indocement work hard every day to build trust and reliable partnerships with key stakeholders in the targeted villages.

Indocement’s investments naturally include philanthropic causes such as social events, scholarships, house renovations, road construction, water supply projects etc., in order to answer immediate needs and strengthen cohesion within the communities. But, the main – and growing – focus is on sustainable development. The goal is to strengthen the local communities and promote entrepreneurship. For instance, Indocement invests in professional training programmes. “In our country, we have a moral duty to participate directly in the ‘gap filling’ for development. Welfare in the villages creates harmonious relationships. And in the long run, however, it will also create new demand for our building materials,” says Kuky Permana, Director of Human Resources at Indocement.

Farmers training center

The Farmers Training Center managed by Indocement teaches every year around 100 farmers about modern farming methods. After two to six months of theoretical and practical teaching, the farmers are better prepared to develop their own businesses. After the training, CSR officers continue to provide supervision to help them taking off. Indocement also facilitates access to microcredit at advantageous interest rates.

Biogas programme

With the biogas programme, Indocement has developed a simple technology to convert biomass from cattle manure into energy for cooking. In 2012, 70 units have been installed in the villages. They are a good alternative to gas bottles – reducing energy costs.

Vocational training

Indocement’s vocational training programmes for mechanics, electricity, masonry, or sewing, have benefited many previously unskilled villagers. The key indicator of success here is the ability to find a job after the training. Therefore, Indocement supports skilled workers in finding employment opportunities afterwards – inside or outside the company.