Environmental Management and Community Development

As a mining company, Antam realizes its operations have a direct impact on the surrounding environment and nearby communities. Environmental sustainability and community development are not viewed merely as being socially responsible, but also as risk management. The characteristic of mining in Indonesia is that it plays a big role in the development of remote areas and so given the mine’s large role in community development it is crucial to operate not as an outsider but as a member of the community and a good corporate citizen and thereby reduce the likelihood of business interruptions. The risk of an environmental disaster, caused by an accident or mismanagement, must be dealt with as the impact and associated costs could be substantial.

If a community’s expectations of the economic benefits of hosting a mine operation are not met, it can create resistance, which may jeopardize the mine operation’s sustainability.

For example, in 2003, tens of community members at   Kampung Pasir Gintung, Bogor Regency, which is located approximately 16 kilometres from Antam’s Pongkor gold mine, staged a peaceful rally to air grievances over the alleged unfairness of Antam’s community development programs, requesting more attention to community welfare and more job opportunities for local residents. Antam and the protesting community members reached an agreement where Antam will improve its community development programs by incorporating more local residents. Antam also helped create a community forum called FKMNA to represent local residents.

Thus, environmental sustainability and proactive community development are necessary to successfully operate a mine. Serious attention to natural conservation efforts and proactive participation in community development are one of the keys to successful mining activities.