Tri Rachman Batara
datien widyastuti
Melisa Melayansari
IPMI International Business School
Amelia Naim Indrajaya
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Lead by example, PT Vale Indonesia Tbk ("PT Vale") remains committed to complying and continuously practicing sustainability principles. The company has been supplying 5% of the world’s nickel demand. One of its commitments is to ensure that the company’s presence contributes benefits to the surrounding communities.
PT Vale has developed its corporate social responsibility programs integrating them with the government priorities programs by conducting several processes such as stakeholder mapping, community needs assessment in the areas surrounding the company and reviewing the service profile of East Luwu Regency. The company has developed integrated Community Development Program (PTPM) that has focus in empowering local community which was first initiated in 2013. In 2017, the total allocation of fund dedicated by the company to contribute to local communities was US$2.2 million. The program has reached 36,000 poor beneficiaries in 38 villages in East Luwu Regency, Sulawesi. More than 1,000 healthy family toilets were built for the same area. The program has also supported Posyandu (Integrated Social Welfare Service), and infrastructure in four districts in East Luwu Regency.
The program also supported one early childhood education (PAUD) in one village in East Luwu Regency. The program also assisted micro, small and medium enterprises (MSMEs) in sub districts of East Luwu by giving them business, product and legality consultation for example the legality of processed products to be accepted by the market. The company also mobilized efforts to process livestock waste into biogas energy sources.
The program also gave life skill training for youths to improve skills and work ability in order to enhance their living standards.
The company also introduced environmentally friendly farming System for Rice Intensification (SRI) for farmers. With the spread of the program in 27 villages in East Luwu, farmers produced certified organic rice. Specifically, in health sector PT Vale also provided support and mentoring in the form of herbal cultivation.
In order to maximize PAUD as medium to educate children in golden age, PT Vale also conducted training to improve the capacity of teachers and educators through apprenticeship, comparative studies and technical guidance and workshops.
With its vision to be the number one global natural resources company in creating long term value, through excellence and passion for people and the planet, its social activities programs have contributed positive impacts to the communities as follows:
Started in 2013, PT Vale developed, introduced and implement modern and comprehensive CSR programs in three types of program:
People surrounding the operation in Sorowako had already enjoyed "Community Development Programs" conducted by PT Vale from the beginning of its operation 50 years ago, using philanthropic approach. Most of the programs was given in cash and/or facilities to people or group of people.
Understands the approach is not leading to sustainable results, PT Vale change the approach starting 2013, and got serious challenges not only from the impacted people but also from local government that became anxious of possibility public unrest because of the "dramatic" changes taken by the Company.
PT Vale believes with the initiative and consistently implement the new approach. After about four consecutive years, people understand and start to believe in the approach, supported by the newly elected local government.
In five year (2013-2017), PT Vale spend about US$ 21 million to the new approaches, with cost distribution: PTPM 50%, Strategic Partnership 40% and Strategic Contribution 10%
Under the new concept of PTPM, during 2017 the programs provided the following benefits:
Direct benefit: Community support to PT Vale operation to ensure business sustainability
Indirect/long term benefit: to contribute to people development, so at the end the Company will have quality talents coming from its surrounding.
The new approach is to ensure the society will have sustainable benefits from all CSR programs of the Company. Not only to ensure people and live quality, but also to ensure they will be ready when the time comes PT Vale has to leave the area because of the end of Contract of Work, or the end of the deposit of the mineral.
The local government will also got benefit, since the Company had already involve actively, and aligned with Government programs to develop the people.
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PT Vale is a subsidiary of Vale SA, a huge global mining company based in Brazil, operating in more than 30 countries in 5 continents. Vale (Group) produces various minerals, from iron to gold, and the operation is covering the mining operation, power/energy generator, and transportation of the products (conveyor belts, trucking, train, vessels, etc.). Its mission is "to transform natural resources into prosperity and sustainable development", under the vision "To be the number one global natural resources company in creating long term value, through excellence and passion for people and the planet".
PT Vale Indonesia is one of the largest nickel companies in the world. The company has been operating in Indonesia since 1968 under Contract of Work (CoW) with the government of Indonesia. The Company explores, mine process and produce Nickel (Ni) with its total concession area of 118,017 Ha in South, Central and Southeast Sulawesi. The
The product is nickel in matte, an intermediate product, from lateritic ores at our integrated mining and processing facilities near Sorowako on the island of Sulawesi. The entire production is sold in US dollars under long-term contracts for refining in Japan.
PT Vale's main operation is at Sorowako, a hinterland in Sulawesi Selatan, just about in the middle of Sulawesi island. Surrounded by beautiful landscape with a 5 ancient lake system, and about 50,000 population, PT Vale conducts a responsible mining operation. Not only adopts full-arrays of the concept, but also with systematic and integrated improvement system to ensure the Company is doing the best for the environment by its product stewardship.
PT Vale financial performance in 2018 seems like much better comparing to 2017. Until 3rd quarter of 2018, PT Vale performed about US$55.2 million profit compare to suffering US$ 15.2 million during 2017, mainly because of the slump of global nickel price. However, the price was just picking-up by end of 2017 and looks stronger until today and World Bank forecasted it will going up steadily until 2030 (Knoema.Com).
