Esg

CSR Commitment & Policy [3-3]

The Company is committed that its operations can provide optimal benefits for stakeholders, whether in terms of economic, social, or environmental perspective. The Company strives to continue synergizing with all stakeholders in creating a development that is right on target by optimally using available resources. All Corporate Social Responsibility (CSR) activities carried out by the Company through the Social and Environmental Responsibility Program have been in accordance with the Minister of State-Owned Enterprises Regulation No. PER-06/MBU/09/2022 concerning the Amendment to Ministry of State-Owned Enterprises Regulation Number PER-05/MBU/04/2021 concerning Social and Environmental Responsibility Program for State-Owned Enterprises. The Company has established a Social and Environmental Responsibility (TJSL) policy, related to community empowerment, including :

• Mitigating the negative impact of the Company’s operations through compliance with regulations and creating new, better value for the communities and environment;
• Providing social, economic, and environmental benefits to the community, especially in the vicinity of Company operational areas; and
• Improving the Company’s reputation, efficiency, and business growth, and implementing business risk mitigation.

PT TIMAH Tbk's community development and empowerment programs are focused on supporting the government's efforts in:

1. Improving the local provincial and/or district/city human development index by increasing access to and quality of education;
2. Improving the health of the community around the mine by reducing the spread of infectious diseases, reducing the risk of mothers dying during childbirth, and improving child nutrition;
3. Developing the economy of the community around the mine as well as implementing post-mining activities;
4. Increasing the community's real income and sustainable livelihoods;
5. Developing sustainable socio-cultural and environmental communities around the mine, which refers to local wisdom as follows: customs, religion, sports, and arts; and/or participation in environmental management;
6. Developing opportunities for the community to participate in sustainable management of the community environment around the mine;
7. Developing community institutions in supporting the independence of PPM; and
8. Building infrastructure that supports the achievement of PT TIMAH Tbk's PPM program objectives.

Empowered and Prosperous Community [413-1, 413-2][POJK51 F.25] [F.23]

The Company realizes that its operational activities have both positive and negative impacts on the surrounding community and the environment. The positive impacts include the provision of jobs for local communities so that they have an impact on improving the economy and will continue to grow in line with the increasing activities of the Company. The negative impact caused by the Company is that the end of its mining and processing activities will have an impact that causes the decline of the community’s welfare. In addition, if the mining area is not managed properly, it will have an impact on decreasing environmental quality. [203-2] [413-2]

However, the Company continues to strive to mitigate negative impacts from economic, social, and environmental aspects so that they become positive by empowering the economic capabilities of the communities around the operational area. The Company has also prepared and realized various TJSL programs through an approach that is based on the expectations of stakeholders, where the welfare of the community is in line with the development of the Company's business. [413-1]

Through the CSR Division, the Company is responsible for the implementation of all TJSL programs and has standard operating procedures (SOP) for handling public complaints regarding the existence of the Company's operational activities. During 2022, the Company did not receive any complaints/complaints from the public related to social or environmental, and there were no records of incidents involving the rights of indigenous peoples or incidents that impact local communities. [411-1] [F.24]

Featured Community Program [POJK51 F.23, F.25]

Mining companies in Indonesia are required to develop and implement Community Development and Empowerment Master Plans (PPM) in accordance with the Ministry of Energy and Mineral Resources (ESDM) implementation guidelines. The Company fulfills this requirement by establishing a PPM Master Plan for the period of 2019 - 2029 until mine closure. This document has referred to the following industrial guidelines:

• United Nations Sustainable Development Goals.
• International Finance Corporation (IFC) Strategic Investment Community Handbook.
• ISO 26000 Guidelines on Social Responsibility.
• Ministry of Energy and Mineral Resources Decree Number 1824 K/30/MEM/2018 concerning the Guidelines for Implementation of Community Development and Empowerment

The Company carries out three categories of Social and Environmental Responsibility Programs to improve the welfare of the surrounding community, including:

1.  Social and Environmental Responsibility Program (TJSL).
2. The Micro & Small Business Funding Program (PUMK) is part of the SOE TJSL Program which focuses on business development and development of MSEs.
3. Community Development and Empowerment Program (PPM).

Through these three priority programs, the Company is committed to establishing a better quality of life with the community and related parties in all operational areas. And to ensure that the three programs are carried out properly and provide maximum results, the Company maintains and establishes good relations with various other stakeholders to ensure that all programs can be implemented in a sustainable and targeted manner. Throughout 2022, the Company has invested in infrastructure development in various facilities that have a positive impact on local communities. [203-1]