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Maintaining a Harmonious Relationship with the Community
Policy on Community Investment Program [MM10]
PT TIMAH Tbk runs the business while providing the community around the operating sites with benefits and impactful contributions. We create positive contributions such as the absorption of local labor, job creation, and economic improvement and endeavor to contribute more as the Company’s business also grows. In addition, we continue to minimize the negative impacts of our operations on communities through various programs and build partnerships with government, civil society, and development agencies to support sustainable social and economic development. 

As a mining Company in Indonesia, we are required to develop and implement a Community Development and Empowerment (CDE) Master Plan in accordance with the implementation guidelines of the Ministry of Energy and Mineral Resources (ESDM). The Company has fulfilled this requirement by developing a PPM Master Plan for the period 2019-2029 until mine closure. This document has referred to several external initiatives such as the Sustainable Development Goals (SDGs)and the Minister of Energy and Mineral Resources Decree No. 1824 K/30/MEM/2018 on Guidelines for the Implementation of Community Development and Empowerment. 

There are three categories of programs we run; they are:

1. Social and Environmental Responsibility Program ( TJSL).
2. Micro & Small Business Funding Program (PUMK), as part of the SOE CSR Program, focused on business coaching and development of Micro and Small Enterprises (MSEs).
3. Community Development and Empowerment Program (PPM). 

The Company has an internal Social and Environmental Responsibility (CSR) Program policy prepared by applicable regulations. The formulation of the TJSL policy includes:

1. Empowering community.
2. Overcoming the negative impact of operations.
3. Providing benefits to the community around the operational area.
4. Improving reputation, efficiency, business growth, and implementing business risk mitigation measures.

The CSR Division monitors and evaluates the community programs, and we quarterly report the realization of TJSL, PUMK, and PPM programs to the Ministry of SOEs and the Ministry of Energy and Mineral Resources. The Company also reports all activities and budgets related to TJSL at the GMS held once a year.

Negative Impact Assessment of Operations and Management Efforts [2-25, 413-1, 413-2][MM7, MM8][EM- MM-210b.1][EM- MM-210b. 2]

The Company annually conducts social mapping around the operation sites to identify the impacts caused by operations, obtain a profile of the local community, and explore the potential for empowerment programs. In addition, the purpose of social mapping is to obtain a social license to operate (SLO) and resolve issues of community rejection that may delay mining activities.

Any mining activities will cause landscape changes in the form of mining openings or pits leaving mining scars. Being aware of these negative impacts, our mining process uses the backfilling method, and we replant trees to restore the ecosystem to its original conditions. Meanwhile, the remaining openings are utilized for reclamation such as post-mining pits for fisheries or tourism objects.

In 2023, there were delays in project or mining work due to the completion of the licensing of the Marine Space Utilization Activities Conformity Approval (PKKPRL) which is still ongoing in the Oliver Sea, East Belitung. The delays in projects or mining were due to the community rejection of mining activities in the Rias Sea and Beriga Sea.

In 2023, we conducted social mapping in Batu Beriga Village, one of the villages in our mining sites, whereas the other side of the sea will be part of our mining sites as stated in the Bangka Belitung Islands Province Regional Regulation No. 3 of 2020 on the Zoning Plan for Coastal Areas and Small Islands of Bangka Belitung Islands Province 2020-2040. The locals of Batu Beriga Village rejected the mining activity plan because they considered the mining activity would interfere with fishermen’s livelihoods. To obtain the SLO and resolve issues with the locals, the Company will carry out a community empowerment program referring to the results of the social mapping study. The social mapping study concludes Batu Beriga Village has the potential for agricultural land, beaches, and seawater with high salinity levels to be managed and developed. Furthermore, the average villager is experienced in cultivating seafood and works as a fisherman. 

The Company’s efforts to succeed the mining plan and be accepted by the locals are by organizing the following steps:

• Strengthening the fishermen’s economy through intertribal networks, if the construction of a soil retaining wall (talud) is too expensive then it can be in other forms such as aquaculture development.
• Af firming the BUMDes’ portion in mining activities in Batu Beriga to improve the fishermen’s economy.
• Improving the intensity of communication and interaction with key stakeholders.
• Building the trust of residents by showing PT TIMAH Tbk's commitment to developing the fishermen’s economy before mining exploration.

The CSR Division is responsible for the TJSL program and involves stakeholders, the local government, local and customary community representatives, fishermen, and fisheries community groups in a Provincial CSR forum. In addition, we have a grievance mechanism related to the impact of our operations on the environment and our CSR programs. In handling community complaints, the CSR Division refers to the standard operating procedure (SOP) for Handling Community Complaints SOP/CSR/2020. During 2023, 8 complaints or grievances were received from the community and all had been resolved. In addition, there are no records of conflicts or incidents of violations of the rights of indigenous peoples or events that impact local communities.