Adaro SR 2010

Sustainability Report 2010
Laporan Keberlanjutan
PT Adaro Indonesia
Head Office
pt adaro INDONESIA
Menara Karya, 22nd-23rd Floors
Jl. HR Rasuna Said, Blok X-5 Kav. 1-2
Jakarta 12950
Value Added of Coal for Sustainability
Indonesia.
Phone: (62-21) 2553 3000
Sustainability Report 2010

Facsimile: (62-21) 5211 266
Value Added of Coal for Sustainability
pt adaro INDONESIA
PT Adaro Indonesia
Operational Office
Wara KM. 73, Hauling Road
Laporan Keberlanjutan
PO Box TTB 110 Tanjung 71500
South Kalimantan
Phone: (62-526) 2121 997/98
Facsimile: (62-526) 2021 996
Corporate
Profile
Parameters
of Reporting
Governance, Commitment
and Stakeholders
Environmental
Performance
table of contents This page is

intentionally empty
2 4 12 16 28
Message Corporate Profile Parameters Governance, Commitment Environmental
from the We Are: PT Adaro Indonesia of Reporting and Stakeholders Performance
President Awards received Report profile Organizational structure Material usage
Director Vision, Mission and Scope of the report Avoiding conflict of interest Energy utilization
Corporate Values Disclosure of information Water usage
Commitment ro corporate values Mining concession and
Risk prevention and management local people
External initiatives and Biodiversity
associate membership Gas emissions
Relationship with stakeholders Wastewater treatment
Waste management
Impact of transportation
activities
Environmental cost and
compliance
Laporan Keberlanjutan 2010

Economic Performance
Suistainable Human
Resources Development
Occupational Safety
and Health
Building The
Community
What They Say
46 52 62 68 80
Economic Sustainable HR Occupational Building The What They Say
Performance Development Safety and Health Community Abdel Fadillah, Regional Secretary
Economic achievement Employee profile Occupational safety Scope of program and Head of CSR Drafting Team
Climate change Local employees Occupational Health Empowering community Agus Dwiwidianto,
Anticorruption Freedom of association economy Project Manager of business partner
Government assistance Collective work agreement Care for education Setiabudi, Operational Manager of
and political independence Work days and hour Health Adaro Bangun Negeri Foundation
Local suppliers Training and career Socio-cultural development Abdul Karim,
Product management development Public policy contribution Owner of Drinking
and marketing Remuneration and Water Refill Station “Rezky Ajib”
Customer survey retirement allowance Arif Rahman, Operating Officer of
and privacy Forest Honey Venture “UD. Tiga Wangi”
Healthy business competition Eli Durgawati, Housewife,
Compliance with law Activist of Tabalong Local Community
Laporan Keberlanjutan 2010 PT ADARO INDONESIA

Message from
the President Director
Dear stakeholders,
We meet once again with the 2010 We responded this ‘Golden Chance’ by
Sustainability Report of PT Adaro Indonesia. reopening the Paringin Mine and optimizing
The year of 2010 was Adaro’s Golden Chance the production of Wara Mine. Despite Of
year. Regardless of taking care the corporate unfavorable weather, mainly the occurance of
social responsibility more seriously, our business high intensity and rate of rainfall, we managed
has expanded to supply coal for China, India, to maintain a record annual production
and also Indonesia markets. Recognizing the growth at 42.2 million tons.
development and reporting such valuable
matter will be our dignity. Corresponding this Along with this satisfying economic condition,
sustainability report as a perfection of PT Adaro we are proud to receive the Indonesia Sustainability
Energy’s annual report, the holding company, Reporting Award (ISRA) for the 2009 Sustainability
we proudly pull out ‘Value Added of Coal Report that we published for the first time. In
for Sustainability’ as the theme of PT Adaro addition, we also received a Green Proper award for
Indonesia’s Sustainability Report. the third time, Aditama Award for Environmental
Management in the coal sector, Primaniyarta Award
This theme embodies the responsibility of the as the Best Performing Exporter of the Ministry of
Company, which engaged in non-renewable Trade, as well as KSN Awards, GKPM Awards and
natural resources sector, for sustainable CSR Green Awards. These achievements reflected
development to ensure the growth of company PT Adaro Indonesia’s commitment in improving
towards government, environment and the performance of corporate governance, legal
community. compliance, internal control and transparency. All
of them are integral part of the company’s efforts in
When we began operating in South operating and managing the business, which is in
Kalimantan in 1992, we made a commitment line and consistent with the global business ethics.
to integrate into the community and carry
out sustainable community development We will continue to work for the creation of
programs. The main objective of these sustainable value in Indonesian coal industry by
programs are to manage the impact of the building PT Adaro Indonesia to be bigger and
company’s operations on social, economic, better, and maximize high long-term growth in
and environmental aspects, as well as ensuring the energy market. Our Sustainability also means
the benefits of the Company’s presence to the sustainability of the environment around
the surrounding communities. Our programs us, including environmental preservation and
that include the empowerment of small and community empowerment
medium enterprises, education, health and
social culture, are reviewed annually with Finally, please allow us to express our
the aim that these programs can continue appreciation to all stakeholders for their
independently. active roles in maintaining the business to
create sustainable economic, social and
Since the financial crisis receded, our business environmental conditions.
had been growing and had the opportunity to
supply coal to the markets of China, India, and
also Indonesia. The company’s market share in Thank you
these countries are more than half of the global Jakarta, August 2011
market, as these three markets have the highest
growth rates in the world.
Garibaldi Thohir
President Director of PT Adaro Indonesia
2 Laporan Keberlanjutan 2010 PT ADARO INDONESIA

We will continue to
work for the creation
of sustainable value in
Indonesian coal industry
Laporan Keberlanjutan 2010 PT ADARO INDONESIA 3

CORPORATE
PROFILE
4 Sustainability Report 2010 PT ADARO INDONESIA
PT Adaro Indonesia was founded in 1982
and operates as a subsidiary of PT Adaro
Energy Tbk. The company engages in coal
exploration and mining
We Are: PT Adaro Indonesia

Awards Received
Vision, Mission, and Corporate Values

corporate profile
We Are: PT Adaro Indonesia

PT Adaro Indonesia was founded in 1982 and The coal are produced to supply the
operates subsidiary of PT Adaro Energy Tbk. domestic market and also exported to over 18
The company engages in coal exploration and countries including China, England, Spain and
mining. The operations are carried out under the United States. (2.7)
Coal Mining Exploitation Work Agreement
(PKP2B) No. J2/JIDU/52/82 dated 16 November According to its name, coal is classified as
1982 with Perum Tambang Batubara as the eco-friendly as it only has 0.1% sulfur and
principal, which was then updated by the roughly 1% ash. The main users of our coal
Department of Mines and Energy (currently products are the power generating companies,
called Ministry of Energy and Mineral Resources/ as well as cement and pulp & paper industries.
ESDM). (2.1) (2.3) Particularly in Indonesia, our coal is used to be
supplied for Coal-fired Power Plant (PLTU) of
PT Adaro Indonesia’s head office is domiciled Java – Bali grid, namely PLTU PEC, PLTU Paiton 1
in the Capital Special Region (DKI) of Jakarta. and 2, PLTU Jawa Power, PLTU Cilacap, and PLTU
The mining operations are located in South Suralaya.
Kalimantan and Central Kalimantan provinces.
Mining sites are located in Balangan Regency During the reporting period there was no
and Tabalong Regency in South Kalimantan. significant change regarding the 35,800.80
While the crushing plant and the loading port hectares of mining area that protected
is located in South Barito Regency in Central under coal contract of PKP2PB (Coal
Kalimantan. (2.4) (2.5) Mining Exploitation Work Agreement), the
organizational structure and share ownership.
Our main product is the processed coal, However, we have resumed the operations
which marketed under the brand name of Paringin Mine that earlier had halted its
“Envirocoal 5000” and “Envirocoal 4000”. (2.2) activities due to economic reasons. (2.9)
Our main product is the processed coal,

which marketed under the brand name
“Envirocoal 5000” and “Envirocoal 4000”

PT Adaro Indonesia Scale of Reporting (2.8)
Year of
Description
2008 2009 2010
Number of Employees 1,082 1,117 1,334
Total Net Sales (US$) 1,617,765,114 2,406,903,867 2,411,971,193
Total Capitalization (Million US$)

Debt 1,029,304,944 1,884,077,979 1,648,576,462
Equity 255,849,805 459,330,153 236,416,840
Quantity of Product Sold (Metric Ton) 39,798 41,080 42,450
Total Assets (US$) 1,285,154,748 2,303,408,132 2,411,971,193
Share Ownership (%) (2.6)

1. PT Alam TriAbadi 60.27 60.27 60.27
2. PT Viscaya Investment 28.326 28.326 28.326
3. PT Dianlia Setyamukti 5.838 5.838 5.838
4. Indonesia Coal Ptv.Ltd 4.674 4.674 4.674
5. MEC Indo Coal, BV 0.935 0.935 0.935
Sustainability Report 2010 PT ADARO INDONESIA 7

Destination Countries of
Envirocoal Product Marketing
United States
Chile

NORTH EUROPE
Finland
Denmark
Germany
Deutchland
France
England
north asian
Japan
Republic of Korea
China
Taiwan
Hong Kong
south europe
Spain
Italia
Slovenia
southeast asia
Philipine
Malaysia
Thailand
south asia
India Indonesia
Oceania
New Zealand

corporate profile
Awards Received (2.10)
• Indonesia Sustainability Reporting Award (ISRA) for • National Solidarity Award (KSN Award)
Commendation Award category from National Center for from the Ministry of Social Affairs.
Sustainability Reporting (NCSR).
• Community Empowerment Program Expo (GKPM)
• Green Proper award from the Ministry of Environment. Award from Republic of Indonesia Coordinating
Minister for People’s Welfare.
• Aditama award for Environmental Management in coal
sector from the Ministry of Energy and Mineral Resources • CSR Green Award from Bisnis & CSR Magazine which
(ESDM) of Republic of Indonesia. collaborated with Republic of Indonesia Regional
House of Representatives.
• Primaniyarta award for The Best Performing Exporter
from the Ministry of Trade

Vision (4..8)
To be the leading Indonesian mining Corporate

and energy corporate group
Values:
Mission (4..8) 1. Focusing on the Consumers.
Operating in mining and energy sector to: 2. QCDS (Quality, Cost, Delivery, Safety)
3. Own characteristic:
• Satisfy the consumers’ need.
· Attitude
• Improve the employees.
· Determined
• Create a partnership with the suppliers.
· Adaptive
• Support the state and community
· Responsive
development
· Open minded
• Improve safety and environment
conservation · Integrity
• Maximize values for the shareholders. · Balanced
· Team Spirit
4. PDCA (Plan Do Check Action)
5. KISS (Keep It Simple Spirit)
6. MbL (Management by Love)

PARAMETER
OF REPORTING
This report contains the implementation
of the Company’s social responsibility
activities, during the Period of Januari 1
to December 31, 2010
Report Profile
Scope of the Report

parameter of reporting
REPORT PROFILE
The 2010 Sustainability Report is the
third sustainability report and the second
report prepared with reference to the Global
Reporting Initative (GRI). This report contains
the implementation of the Company’s social
responsibility activities, during the period of
January 1 to December 31, 2010. (3.1)
This report is a continuation of the 2009

Sustainability Report published on November
19, 2010. We plan to publish sustainability
report annually, as substantiation of the
Company’s commitment on implementing of
corporate social responsibility (CSR) that covers
economic, social, and environmental aspects.
(3.2) (3.3)
We expect feedbacks for this report, in form

of input, suggestions and constructive criticism
that can be submitted to: (3.4)
1. PT Adaro Indonesia
Head Office
Menara Karya, 22nd-23rd Floors
Jl. HR Rasuna Said, Blok X-5 Kav. 1-2
Jakarta 12950
Indonesia.
Phone: (62-21) 2553 3000 PARAMETER OF ACHIEVEMENT
Facsimile: (62-21) 5211 266
2. PT Adaro Indonesia PROGRAM INTERMEDIATE TARGET FINAL OBJECTIVE

Operational Office
ECONOMY Business units improve
Wara KM. 73, Hauling Road
Educational services improve
PO Box TTB 110 Tanjung 71500 EDUCATION Health services improve INDEPENDENT
South Kalimantan Socio-cultural programs running COMMUNITY
Phone: (62-526) 2121 997/98 HEALTH Sustainable programs
Facsimile: (62-526) 2021 996 Harmony with community
SOCIAL CULTURE
INDEPENDENT COMMUNITY CRITERIA:

Has a source of income that is able to support the family’s life and not dependent on
the company or the government
Has the intellectuality that is able to compete with other communities
Has the ability in self management and community management to be independent
of others

Mobile library. Location of crushing plant dan sizing plant.
SCOPE OF THE REPORT

The important stage of reporting is the stage to provide expla-nations and complete
of collecting informations that considered information regarding the Company’s
valuable. We put forward the materiality implementation of social responsibility. We
principle that priotitizes disclosure of any strive to improve these shortcomings in the
information which may affect the stakeholders’ future, with more attention to record. (3.10)
decision-making and which have important (3.11)
implications for economic, social, and
environmental performance. (3.5) The scope of the information in this report
includes the CSR implementation of PT Adaro
In addition to the print edition, the 2010 Indonesia complemented with data from the PT
Sustainability Report can be accessed via the Adaro Energy Tbk as the parent company and
Company’s website: http://www.adaro.com. from partners or contractors. The required data
The print edition of this report is especially collected by the Reporting Team consisting
provided to shareholders, government insti- of CSR-related departments in the Company.
tutions, academicians, research institutions and All data presented is a continuation of the
nonprofit organizations as a representation of information in the 2009 Sustainability Report
society. (3.5) and other information from the 2010 Annual
Report of PT Adaro Energy Tbk. (3.6) (3.7) (3.8)
All information presented in this report
are adjusted to the Sustainability Reporting We decided to perform an application level on
Guidelines (SRG) version 3.0 issued by the Global this report in order to improve the compliance
Reporting Initiative (GRI) and complemented with guidelines of GRI standard. We stated that
with additional indicators of the Mining this sustainability report is at level “B”, verified
and Metals Sector Supplement (MMSS). All by the independent institutions, namely the
information is presented through a qualitative National Center for Sustainability Reporting
approach, in the form of descriptive narrative (NCSR). However, we have not conducted an
with supporting images, as well as quantitative assurance yet. (3.13)
approach in the form of numerical data
according to specified measuring instruments.
(3.9)
In this 2010 Sustainability Report, we

conducted restatement of significant changes
to data and information previously presented
in the 2009 Sustainability Report. The changes
This report is a continuation
made to include data and information
about uses of energy, water, employment, of the 2009 Sustainability Report
and scholarships. Restatement is expected

GOVERNANCE,
COMMITMENT and
STAKEHOLDERS
16 Laporan Keberlanjutan 2010 PT ADARO INDONESIA
Since it was founded in 1982, PT Adaro
Indonesia continues to grow and strive to
become a leading coal mining company
with professional governance
Organizational structure diagram

Avoiding conflict of interest
Disclosure of information
Commitment to corporate values
Risk prevention and management
External initiatives and associate
membership
Relationship with stakeholders

Foto direksi

governance, commitment and stakeholders
Since it was founded in 1982, PT Adaro “The Limited Liability Company Law also
Indonesia continues to grow and strive to makes the indicator become irrelevant for the
become a leading coal mining company report. Under the law, we put the separation
with professional governance. The company of duties and responsibilities between the
also adheres to the Law No.40 of 2007 on Board of Commissioners and the Board of
Limited Liability Companies. Under the Directors. A Director cannot hold a position
law, the applicable governance structure as a member of Board of Commissionaires
consisting of several company bodies, namely and vice versa. To ensure that we can apply
the shareholders’ meeting as the company’s a good corporate governance, we appointed
highest body, the Board of Commissioners as 2 (two) independent members of Board of
a company that oversees and provides advice Commissionaires. (4.2) (4.3)
to the Directors in determining policies, and the
Board of Directors as the body that manages PT Adaro Indonesia is the holder of coal
the company. The company also formed exploration and mining permit in South
several committees to support the execution Kalimantan. The company markets its
of duties and responsibilities of the Board products under Coal Mining Exploitation Work
of Commissioners. The committees are the Agreement (PKP2B). Within it's operation, the
audit committee and information disclosure Board of Commissioners and Directors are also
committee (4.1) the Board of Commissioners and Directors of PT
Adaro Energy Tbk, which is the parent company
of PT Adaro Indonesia. The appointment
and the determination of the Board of
Board of Commissioners
Commissioners and Board of Directors are
President Commissioner Edwin Soerjadjaja based on the proposals and nominations from
Vice President Commissioner Theodore Permadi Rachmat
shareholders whose shares representing at least
10% of the total shares with valid voting rights.
Commissioner Ir. Subianto For the Board of Commissioners in particular,
Commissioner Lim Soon Huat there is also appointment of Independent
Independent Commissioner Ir. Palgunadi Tatit Setyawan Commissioners who are not representatives
Independent Commissioner Dr. Ir. Raden Pardede of the shareholders, so that the Board of
Directors’ policy can oversee transparently and
objectively. However we do not have yet a
specific guidance for selecting Commissionaire
or Director regarding sustainability criteria. (4.7)
Board of Directors
President Director Garibaldi Thohir
The amount of compensation for the Board
of Commissioners and Board of Directors is
Vice President Director Christian Arioano Rachmat
determined by the shareholders in the meeting
Corporate Affairs Director Andre J Mamuaya mechanism. Determination of the amount
Director Sandiaga S Uno of compensation is based on the principle of
merit/services that are directly related to the
Finance Director David Tendian
achievement of the performance. The system
Director Alastair Bruce Grant
also ensures an objective assessment of the
Operational Director Chia Ah Hoo performance will take place. One of the bases
is the fulfillment of the assessment formulated
at the beginning of the year by including the
targets of social responsibility implementation.
(4.5) (4.10)

President Director
organizational structure diagram

Director of
Operations
Chief Operating
Officer
General Manager
Officer
Secretary
Deputy GM Deputy GM
Strategic Planning Production
Strategic Geology & Business Paringin Production Mine

Coal Hauling Geotechnical Production
Planning Exploration Improvement Project HSE Manager Planning Infrastructure
Manager Manager Manager
Manager Manager Manager Manager Manager Manager
Coal Hauling Long Term Geotechnical Geology & Bussiness Reclamation Central Prod. Short Term PIT
Administration
Supt. Planning Supt. QC Supt. Improvement Supt. Supt. Planning Infrastructure
Supt.
Supt. Supt. Supt. Supt.
Haul Road Environmental North.Prod.

Maintenance Statutory Mine Supt. Mgt Supt. Supt.
Supt. Planning & Survey Supt.
Statistic Supt.
Compliance, Wara Prod.
R & D Supt. Supt.
Road Safety Technical
Supt. Supt.
Mine South Prod.
Health & Supt.
Safety Supt.
Maintenance
Health &
Safety Supt.

Legal Compliance
Officer
Legal Representative
Officer
Deputy GM Deputy GM
Coal Processing & Coal Admin &
Barge Loading External Affairs
Land External Bjrn. Rep. Shipping

Sr. Operation HRGA-IT Fin. & Acc
CSR Manager Acquisition Relations Office Manager
Manager Manager
Manager Manager Manager
Operations Maintenance Admnistration CSR Project Land Shipping

HSE Supt. HR Supt. Acquisition Gov. Rel. Supt.
Supt. Manager Supt. Supt. Supt.
Supt.
General Affair CSR Bina Public media

Supt. Program Supt. Rel. Supt.
IT Supt.

DISCLOSURE OF AVOIDING CONFLICT

INFORMATION OF INTEREST
Shareholders regularly hold meetings with The crucial aspect in good corporate
the Board of Commissioners and Directors. In governance is the mechanism to avoid
these meetings every shareholder has the right conflict of interest. Therefore, in 2010 the
to submit recommendations and opinions Audit Committee began to draw up the Board
related to performance improvement and of Commissioners and Directors Charter, as
business development. This meeting is also a the guidelines to support the oversight and
performance appraisal mechanism of the Board management functions. The Company also
of Commissioners and Directors in managing has ratified and enforced gratification policy
the Company, including fulfilling their social that later became part of the code of ethics,
responsibility in the economic, social and and to develop a procurement system that
environmental aspects. (4.4) (4.10) uses information technology applications to
enhance transparency and accountability. It is
We have not yet had a specific mechanism expected that this system to be implemented
for employees to submit opinions or in 2011. (4.6)
recommendations regarding the management
of the company. However, the Company
continues to open up access and opportunity
for every employee to convey information, COMMITMENT TO
through working unit or workers union. (4.4)
CORPORATE VALUES
The company has a mechanism of meetings,
both for the Board of Commissioners and
Board of Directors as well as other committees We are aware of the importance of Inspiring
to evaluate the operating and financial the values in the Company’s vision and mission,
performance, project progress and other for the creation of Adaro People. Therefore, in
issues including the implementation of every regular meeting involving the employees
social responsibility. In order to effectively of various levels, including the gathering night
implement corporate social responsibility, an attended by the Board of Directors, the values of
executive officer is appointed as Chief CSR the Company are always be induced. Inspiring
Officer who also serves as Director of Adaro these values will directly improve the optimal
Bangun Negeri Foundation established by PT achievement of individual performance, which in
Adaro Indonesia. The existence of a separate turn supports the Company’s performance. (4.8)
foundation from the Company entity is
intended to carry out various CSR activities
and the community development consisting
of economic development, education quality
improvement, health improvement and social
culture development. All of the activities
implemented are periodically reported to the In order to effectively implement corporate
Board of Directors and also to all stakeholders, social responsibility, an executive officer is
as a form of transparency and information
disclosure. (4.9) appointed as Chief CSR Officer who also serves
as Director of Adaro Bangun Negeri Foundation

RISK PREVENTION
AND MANAGEMENT
We are also committed to the importance of One of the commercial risks faced during
risk prevention through risk management to 2010 was weather anomaly that disrupted
ensure the sustainability Company’s activities. the coal supply chain from mining and road
The risk management approach is implemented transportation, to the barge and ship loading
by identifying, evaluating and managing risks operations. The business partners were forced
that may cause negative impact on business. to incur additional costs in order to drain the
Three major risks faced by PT Adaro Indonesia pit and install additional dredging system to
as a coal mining company, are the commercial improve pumping performance. (EC2)
risk, social risk and regulatory risk. (4.11)
In general, the Company

takes insurance
protection measures to
mitigate risks

Meanwhile social risk and regulatory risk
were managed relatively well. Thus, during
RELATIONSHIP WITH
the reporting period we have never faced a STAKEHOLDERS
situation that could disrupt operations.
PT Adaro Indonesia continues to build
In general, the Company takes insurance harmony in relationship with all stakeholders.
protection measures to mitigate risks. We However, we have not identified the main
have various insurance programs to protect stakeholders of the Company. We only
the Company from the associated risks and conducted research in collaboration with the
uncertainties. The insurance programs cover Population Research Center Team of Lambung
the Risks of Property and Business Interruption, Mangkurat University (UNLAM) in 2009, which
Marine Cargo and Shipping, Directors and aimed to identify those who directly affected
Officers Liability, Comprehensive General and/or were affected by the Company’s
Liability, Terminal and Port Operators Liability, operations. (4.15)
Charterers Liability and other general insurance.
The research results showed that the stake-
holders of PT Adaro Indonesia are as follows:
(4.14)
EXTERNAL INITIATIVES • Shareholders
• Local communities.
AND ASSOCIATE • Employees.
• Central and regional governments.
MEMBERSHIP • Suppliers and partner companies,
consisting of subsidiaries of
As a business entity that is engaged in the PT Adaro Energy Tbk and
supply of energy sources, PT Adaro Indonesia other independent companies.
continues to closely watch the development • Mass Media
of external initiatives regarding international • Non Governmental Organizations (NGOs).
policies to reduce carbon emissions (CO2) and
the effects of global warming. Until the end of
the reporting period, there was no significant CSR Department together with the Adaro
decision regarding the determination of Bangun Negeri Foundation, made intensive
emissions targets for coal mining industry, either approach to each stakeholder. It was conducted
it is binding or not. (4.12) to understand their needs and identify the
needs that can be fulfilled by taking into
Until the end of the reporting period, account the programs and activities of social
we were actively involved as member in responsibility in the economic, social and
a number of associations/organizations, environmental aspects.
including the Indonesian Mining Association
(IMA), Indonesian Chamber of Commerce
(Kadin), Indonesian Coal Mining Association
(APBI), Post-Mining Forest Reclamation Forum
(FRHLBT). (4.13)

Methods of Approach to the Stakeholders (4.16) (4.17)
Stakeholders Method and Type of Approach
• Periodic meetings with the Board of

Commissioners and Directors.
• The Board of Commissioners and Directors present report
Shareholders on the achievement of Company performance.
• The shareholders deliver opinion, recommendation and
assessment of achievement of the Company’s performance.
• Empowerment and improvement of welfare and quality of life

through social community programs of Adaro Bangun Negeri
Community
Foundation.
• Provide sufficient remuneration and benefits by taking

into account the cost of living.
Employees • Fulfill the normative rights according to applicable
laws and regulations.
• Adhere to and abide by the laws and regulations.

• Periodic meetings and correspondence with
Government
central and regional government officials.
• Provide information regularly regarding achievement

and performance of the Company.
• Conducting periodic press tour for mass media to observe the
Mass Media
Company’s activities directly to learn ffurther about the company.
Thus, the information published to the public will be factual.
Non-governmental
Conduct dialogue based on information disclosure.
Organization

PT Adaro Indonesia continues to
build harmony in relationship with
all stakeholders

ENVIRONMENTAL
PERFORMANCE
Since the beginning we have strived to
implement the principles of good mining
practice to minimize negative impacts on
the environment
Material usage
Energy utilization
Water usage
Mining concession and local people
Biodiversity
Gas emissions
Wastewater treatment
Waste management
Impact of transportation activities
Enviromental cost and compliance

environmental performance
PT Adaro Indonesia as a mining company is The company operates three mining sites
aware of its disturbance to the ongoing natures namely Paringin Mine, Tutupan Mine and Wara
where the company operates. Therefore, Mine. Operational activities are performed
from the very beginning of mining we have by using heavy equipment, explosives and
struggled to implement the principles of good washing. We do not use recycable materials.
mining practice to minimize negative impacts Coal is categorized as consumable and non-
on the environment. renewable raw materials. (EN2)
We integrate all mining activities under the

control of parent company PT Adaro Energy
Tbk. This condition establishes a complete
supervision over all activities, ranging from Material Usage (EN1)
mining, production, transportation and
delivery to customer. Thus, all the potential Volume
business impacts that may arise are completely Type of Materials Unit
controlled and can be addressed immediately if 2008 2009 2010
problems are found.
Explosives Kg 134,140 147,830 115,348
AN Kg 23,632,450 33,332,850 28,850,498
Detonators Unit 540,568 678,504 535,507
Emulsion Kg 8,364,266 21,675,957 18,991,256

MATERIAL ANFO Kg - 15,338,511 11,766,383
USAGE
Coal deposits or reserves are located in the
depths of the earth, so to obtain it should be
done by mining. Typically, there are two forms
of coal mining activities, namely underground
mining and open pit mining. Underground
mining is done by excavating underground We integrate all mining activities
mine pit and the coal is extracted, meanwhile under the control of parent company
open-pit mining is carried out by stripping
layers of soil and remove the soil until the coal
PT Adaro Energy Tbk
deposits are reached.
Mining activities carried out by PT Adaro

Indonesia is open pit mining, involving five
contractors. Along with the five partners in
its operations, PT Adaro Indonesia produced
overburden that reached a total of 225.87
million bank cubic meters (bcm) in 2010. While
the volume of extracted coal deposits reached
42.2 million tons. (MM3)

Operational activities are
performed by using heavy
equipment, explosives and
washing
Water truck.
ENERGY UTILIZATION
Total Energy Usage (EN3) (EN4)
Most of the energy consumption is used Diesel Oil
to support the production process, such as
material excavation and coal transportation. The
energy consumed comes from the primary 2008 Volume GJ
source of fuel, so it is classified as a direct 334,436,818 2,307,614.04
energy. In addition, the company is no longer
utilize electricity supplied by PT PLN (Persero)
but uses diesel oil to drive power generators. 2009 446,021,178 3,077,546.13
The use of diesel oil for other operational
activities is classified as indirect energy.
2010 423,992,574 2,925,548.76
Notes: Diesel oil in liter

Aware of the large amount of electricity Saving Rate of Solar-based Equipment Use (EN5)
needs while on the other hand the Company
has a great coal potential that can be utilized,
we have started to build a power plant, which in Volume of Saved Diesel Oil
2010 has entered the construction phase. The Equipment
power plant has an installed capacity of 2x30 (Liter/Day)
MW with coal supply from Wara mine. The net Monitoring device of mine slope
75
output of electricity is expected to reach 52.5 stability (Robotic TS)
MW and 5 MW of which will be contributed to Monitoring device of mine slope
15
local communities. stability (VW Prezometer)
The power plant uses environmentally Backbone transmitter of data to mine 20

friendly technology, because the design of
its boilers uses circulating fluidized bed (CFB) Bridge Repeater view point Pama 12
technology that does not produce sulfur oxides
(SOx). Similarly, emissions of nitrogen oxides
(NOx) are ensured to be below the threshold,
given the combustion temperatures of CFB are
relatively low. (EN5)
Similar with other mining industries, it is Biodiesel use has also started to be tested as
difficult for us to be able to develop a coal fuel for two dump trucks. So far the results are
product that can directly reduce the level quite significant because it can reduce diesel oil
of energy consumption. However PT Adaro consumption. In 2011 we plan to add one unit
Indonesia is committed to reducing energy use of dump truck to be operated with biodiesel
through the production process by developing fuel. Thus, total dump trucks using biodiesel
the use of renewable energy as an alternative fuel are three units.
to fossil fuels. Until the end of the reporting
period, there were two types of renewable Our other effort to indirectly conserve
energy that have been developed to be used, energy was providing special transportation
namely solar panels used as power generation for employees. Although specific calculations
and biodiesel. (EN6) have yet been made, the company believes
this step is fairly effective, considering the type
The equipment at mining sites that originally of transportation provided for employees are
used diesel oil as fuel to generate power have of those with large capacity. In addition, the
been gradually replaced with solar panels Company also has a mechanism in determining PT Adaro
as power generators. Besides being more the priority of business travel, based on its Indonesia is
environmentally friendly, use of equipment urgency. This policy will be able to eliminate
with solar-based power generator also has unnecessary business travel so it will indirectly
committed to
conserved energy consumption. There are 4 reduce energy use. (EN7) reducing energy
types of equipment equipped with solar power use through
generator that are operated with the amount the production
of diesel oil savings presented in the table.
process by
developing the
use of renewable
energy

Splashing water activities on mining area.
water usage Water Source and Water Usage Volume at Kelanis (EN8) (EN21)
Water Volume (m3)

Most of water needs are for spraying activities
to reduce dust during unloading of coal at the Year Water Source Destination
Kelanis Port. Water is also used for watering the Barito River Spraying
road, but the volume is continuously reduced
2009 656,355 656,355
along with as the asphalting. Another need of
water is for domestic use. 2010 687,163.68 687,163.68
The water originated from the Barito River Notes: In cubic meter (m3)
and the Waste Water Treatment System (SISPAL)
installation that recycles used water from
spraying process during the unloading. The Water Source and Water Usage Volume at Mining Site (EN8) (EN21)
volume of river water used during the year
2010 reached 687,163.68 cubic meters (m3), Water Volume (m3)
an increase compared to the usage in 2009 Water Source Destination
of 656,355 m3 and this was due to increase in Year
production. The river water is then recycled so Splashing Water
Sump Pit & Run Off WTP T.300
that it can be reused and the volume reached Activity
28% of the total water usage of 2,454,156 m3. 2008 150,000,000 12,650 1,100,000
(EN8) (EN10)
2009 153,000,000 82,297 2,600,000
2010 321,000,000 114,572 2,800,000

Notes: Some of the remaining water is left in the settling pond.

Meanwhile, the mining areas use sump pit We responded to these demands through
water and runoff water from rainwater, which is discussion facilitated by local government, by
then pumped to be collected in settling ponds. putting forward principle of mutually beneficial
Some of the water streamed into the water settlement. (HR9) (MM6) (MM7)
treatment plant in the WTP T.300 to be treated
into clean water that is used for domestic In a land dispute with residents of Klanis and
purposes. The rest of the untreated water is Jemanas villages in Jemanas District, South
used for watering the road in accordance with Barito Regency, the root of the problem was a
the Company’s OSH LH policy, and some is left demand for compensation for the land owned
in the settling pond. by local residents used by the Company for the
13.4 kilometers long road corridor. The residents
unilaterally set the value for compensation,
which made it difficult to find a common
MINING CONCESSION ground. We reached a peaceful deal on this case
through the mediation of the governor with
AND LOCAL PEOPLE the principle of consensus, as an alternative to a
mutually beneficial settlement out of the court
process. In Jemanas Village, although a group
At the beginning, the mining concession of residents insisted on opposing the decision,
(KP) area of PT Adaro Indonesia was 1,480 we managed to acquire the land in accordance
square kilometers (km2). In its development, with the Regent’s decree in determining the
the concession area has been downsized that land ownership. (SO8)
until the end of 2010 the area was only 35,800
hectares. None of the concessions were within Another problem that arose was the sale
the protected forest areas. In these concession purchase of land for conveyor development
areas, there were no small-scale mining activities with residents in Tabalong regency. Although
by local residents and indigenous communities. there were publications on the ownership
The overall mining activities were not followed claim, the incident was considered insignificant,
by relocation of indigenous people residential as the development on the land has not been
area. (EN11) (MM8) (MM9) implemented. (SO8)
However, we were faced with a unilateral

claim from a few local people on the status of
some of the Company’s operational areas.
In the claim, they argued that some of the

region was located within customary land and
the Company was deemed to have violated
customary rights.

BIODIVERSITY
We are aware that Kalimantan island where List of Protected Endemic Flora and Fauna
the coal mining sites are located has a rich at Mining Area (EN15)
biodiversity. The mining activities could cause
a significant impact, as open pit mining requires Local Name Scientific Name Status
the stripping of layer of soil that change the
Scaly-breasted
landscape. These conditions change the Haliastur indus Rare
falcon
original ecosystem filled with vegetation into
the open land with depth, so that the habitat of Hornbill Buceros minoceros Rare
flora and fauna will also be disturbed in the long Pangolin Manit javanica Rare
span of time. (EN12)
Varanus salvator
Lizard Rare
Varanus borneensis
PT Adaro Indonesia has sought to minimize
the impact. Prior to the execution of mining
activities, we have undertaken data collection
and inventory of endemic flora and fauna
that exist on site and always put effort to We also conduct land rehabilitation at each of
comply with the regulations relating to land post mining operations location. During 2010
reclamation at post-mining areas. From the the number of post mining sites rehabilitated
results of flora and fauna surveys conducted by through the revegetation program reached
Lambung Mangkurat University we obtained 150.91 hectares or 0.42% from the total area.
data of several rare species of flora and fauna. Among the revegetation locations are Paringin
(EN14) and Tutupan mines. (EN13) (MM1) (MM10)
To support the implementation of land

rehabilitation program, PT Adaro Indonesia
has a nursery center that is able to produce
60,000 to 150,000 plant seeds annually. Most
of the cultivated seeds are indigenous plants
of Kalimantan as a continuation of cooperation
with the University of Lambung Mangkurat and
Banjarbaru Research Institute for Forestry.

PT Adaro Indonesia’s operational activites in Kelanis.
GAS EMISSIONS
Gas emissions released into the air are mostly and Tabalong regencies, and the creation of
from the exhaust gas of heavy equipment urban forest in Tanjung region. (EN18)
that contributes to greenhouse gas (GHG)
emissions. The heavy equipment is used During coal mining activities and
to extract coal at the mining site, as well as transportation, there is no combustion activity
transportation from the mining site to the that produces and directly release emissions of
Kelanis Port. Although the Company has not nitrogen oxides (NOx) and sulfur oxides (SOx)
made a special calculation, with reference to the into the air. However, we still measured the
tests conducted in 2007 by Bandung Institute air quality from stationary sources. The results
of Technology, the amount of GHG generated indicated the air quality was still below the
from the exhaust gas emissions of heavy threshold of quality standard according to
equipment was declared to have complied Minister of Environment Decree No: Kep-13/
with standards of quality. (EN16) (EN17) MENLH/3/1995 on Standard Quality of Emission
from Stationary Sources. The company also
We also have not calculated the decline ensured there were no production activities
of GHG emissions. However during 2010 potentially releasing chloroflourocarbon (CFCs)
the Company has been conducting several that can deplete the ozone layer. Especially for
activities that could indirectly reduce GHG the use of air-conditioning units, we have used
emissions, through the clean development CFC-free Freon. (EN19) (EN20)
mechanism or CDM. These activities include
rubber trees planting within and outside the
mining site on the 5,900 hectares area since
1997, planting one billion trees in Balangan

WASTEWATER
TREATMENT
The remaining used water or wastewater Some treated water from WTP T.300 is used
from mining operations is processed through a as clean water for domestic purposes, by both
treatment facility equipped with settling pond partners and the community. Clean water
at each mining site. Paringin Mine has 4 units production capability of the WTP T.300 facility
of wastewater treatment ponds, while Tutupan is at 20 ltr/sec or 72 m3/hr. Clean water from the
Mine equipped with 19 waste treatment ponds. processing at the WTP T.300 used by partners
We have a total 27 waste treatment ponds, reached 120 m3/day, while the clean water
including those in Kelanis and Wara Mine, distributed for community use was about 105
which until the end of the reporting period m3 per day. (EN21)
were in good condition.
Since 2008 the Company also built a water

treatment facility WTP T.300, which further
processes the treated water from the settling
pond. The treated wastewater is regularly
monitored to ensure its quality standard does
not exceed the threshold stipulated by Minister
of Environment Decree No.113/MENLH/2003.
Since 2008 the Company
also built a water treatment
facility WTP T.300
Results of Quality Standard Test of Treated Water at WTP T.300
Standard Quality
Parameters Units Method Result
Drinking Water Clean Water
Color Pt-Co Scale Colorometric 7 15 50
Odor N/A Organoleptic Normal Odorless Odorless
Taste N/A Organoleptic Normal Tasteless Tasteless
Total Suspended Solid mg/l Gravimetric 110.4 1,000 1,500
Turbidity NTU Turbidimetric 1.37 5 25

Water and wastewater in settling pond at Then the treatment and monitoring of the
Paringin Mine is processed by gravity with the treated wastewater quality are performed
addition of aluminum sulfate when required. before being reused or discharged into water
The treated water is monitored on a daily basis bodies. Through wastewater treatment, we try
to ensure its quality is in accordance with to minimize the water pollution. However we
quality standards set by the Government. Then understand that there are still different opinions
the treated wastewater is channeled to the and judgement that the efforts that have been
receiving water body Balangan River. done were not enough to prevent pollution of
water resources and the environment. (EN14)
We utilize the treated water for various
purposes, including for water raw material We believe that this usually happens because
for fish cultivation pond. Early in 2010 the there are differences in perception between PT
Company in cooperation with the Indonesian Adaro Indonesia and other parties. In principle
Institute of Sciences (LIPI) conducted research we are willing to engage in dialogue even form
and trials on cultivation of tilapia and prawns a special team to conduct joint investigation
using treated water from the Paringin Mine. into the alleged pollution. It would need a
The first harvest of tilapia and prawns was common understanding, that all of the efforts
in September 2010. From the analysis of an have been made by the Company is always
accredited laboratory, the tilapia and prawns of based on the facts and data that refer to the laws
the fish cultivation pond are declared safe to be and regulations. Quality standard of treated
consumed. (EN21) wastewater before being discharged into the
river bodies or reused is regularly checked
Meanwhile the water and wastewater at and monitored by the Regional Environment
Tutupan Mine, which consists of sump pit Management Agency (BPLHD).
water and run-off water, are channeled to the
settling pond. The treatment performed by Until the end of the reporting period,
gravity with the addition of aluminum sulfate. the Company did not receive any reports
The water is treated and then reused while or complaints concerning disturbed water
partly discharged into the water bodies, after resources and water bodies, including flora and
the quality is ensured to be in accordance with fauna in it. (EN9) (EN25)
quality standards. To optimize the treatment
process, there are periodic dredgings of mud
materials in the settling ponds.
Similar treatment is also conducted at Wara

Mine. Runoff water from mining activities
enters settling pond that is equipped with
sludge holding tank.

We also
distribute some
of the water
treated by
WTP T.300 for
community use
as safe clean
Water treatment installation WTP T.300 is The treated water is then removed through water
the evidence of our commitment in managing a floating inlet with debit of 0.7 m3 per second
water resources in the mining area. The or 700 liter per second and passed through
existence of this facility is not independent the 800 meters channel towards the compart-
of the Company’s intention to optimize the ment in the mud pond to be utilized as raw
existing water resources in the operational material of WTP T.300. Although the raw
environment in order to add value to the material is treated water and not clean water,
surrounding community. The WTP T.300 was but the quality has been tested and meets the
built in 2008, located close to the Tutupan Mine. quality standards set by the Government, the
Indonesian Minister of Health Decree No.907/
The operating principle of this installation is MENKES/SK/VII/2002 on the terms and Quality
to reuse sump pit water from the excavation Control of Drinking Water. Therefore, we also
of the mine and runoff water of rainwater, distribute some of the water treated by WTP
which is contained in a former T.300 mining T.300 for community use as safe clean water.
pit openings. The existing water is treated in
several stages consisting of pH neutralization, In August 2010 we built the 10 kilometers
coagulation and flocculation processes that pipeline to distribute water produced by the
serves as a purification or precipitate dissolved WTP T.300. The management of pipeline will be
particles. handed over to the public through the Clean
Water Management Agency (Bapel-AB). This is
One of the activities in the process is to lower aimed to reduce the community’s dependence
turbidity levels or levels of total suspended solids on PT Adaro Indonesia.
(TSS), using a more environmentally friendly
material kuriflock, relatively inexpensive and
better quality of treated water than the treated
water using alum.

Processing domestic solid waste into compost.
WASTE MANAGEMENT
Coal mining and production process also Meanwhile B3 liquid waste is stored inside the
generate solid waste. There are two types of drum or a special tank and then stored in the
solid waste, domestic waste and hazardous TPS. The B3 waste storage and placement in
and toxic waste (B3). Domestic solid waste the TPS is equipped with recording procedures
is managed by processing it into compost, and information of potential hazards warning.
while the B3 waste is managed with particular When the amount of B3 waste in TPS reaches a
care given its nature that may be toxic to the considerable large quantity, it will be distributed
environment. (EN22) to third parties. During 2010
there were
During 2010 there were 11,140 tons of Processed B3 waste and utilized for own use
11,140 tons
domestic waste processed to become 4,180 is used lubricant under the license from the
tons of compost ready to use. While the B3 Ministry of Environment Decree No. 20 of 2010 of domestic
waste is managed and processed according concerning Permits for Hazardous and Toxic waste
to the type of waste generated, both for own Waste Utilization. The Company utilizes used processed
use or with the assistance of third parties lubricant as a mixture of Aluminum Nitrate Fuel
to become
that already have license from the Ministry Oil (ANFO), with composition of 50% diesel fuel
of Environment to collect, transport and and 50% used lubricant. With the use of used 4,180 tons of
processing the B3 waste. (EN24) lubricant, the use of diesel fuel can be saved. compost
B3 solid waste is stored in temporary
storage (TPS) and has had license from the
Ministry of Environment and local government.

Type and Volume of Managed B3 Waste (EN22) (EN21)
2010 (Ton)
No. Type of Waste Remarks
Processed Stored
1 Used lubricant 4,208.25 41.87 1 liter of used lubricant = 1 Kg
2 Used battery 27.24 0.6 1 pc of used battery = 8 Kg
3 Used filter 97.04 5.47 1 pc of used filter = 1.5 Kg
4 Used grease 5.53 1.38 N/A
5 Paint, thinner, solvent cans 3.50 0.01 1 paint, thinner, solvent can = 1 Kg
6 Utility rag waste 109.25 3.25 1 sack of utility rag waste = 25 Kg
7 Used fuel drums 16.93 0 1 pc of used fuel drum = 15 Kg
8 Diesel fuel waste 1.61 0.01 1 liter of used diesel fuel = 1 Kg
9 Welding wire waste 6.4 0 N/A
10 Used chemical drum 2.5 0 1 pc of used chemical drum = 15 Kg
11 Used gloves 18.11 0 1 pc of used glove = 0.1 Kg
Total 4,504 53
We apply strict procedures in the use and Until the end of the reporting period the
storage of fuels and other liquid chemicals. This Company did not receive any reports about
is aimed to prevent the possible negligence that incidents of fuel and other chemicals spills
could lead to environmental contamination, that could potentially cause environmental
both to water sources and surface soil layers. pollution. (EN23)

IMPACT OF
TRANSPORTATION
ACTIVITIES
Besides mining, the Company’s other major
activity is coal transportion. There are two means of
transport. First, the transport of coal from the mining
site to the Kelanis Port that uses land transport of
special large capacity trucks with a distance of about
80 kilometers. Second, using barges and freight
transport to the location specified by the buyer
through the rivers and seas.
We are aware, transportation activities

directly or indirectly give unfavorable impact
on the environment. Therefore, we have
included a study of the impact of transport,
as part of the study of environmental impact
analysis (Amdal). The control efforts that have
been done include: limiting the speed of every
vehicle passing on the coal hauling road,
asphalting, placement of safety signs, and road
maintenance. (EN29)
ENVIRONMENTAL COST
AND COMPLIANCE
Until the end of the reporting period, the
realization of environmental costs reached
Rp57,303,067,767, an increase over the 2009 cost
at Rp47,901,200,679. From the total amount,
Rp1,260,860,014 was the environmental Until the end of the reporting period,
monitoring costs. The costs also increased the realization of environmental
compared to the year 2009 amounted to
Rp637,000,000. Environmental management
costs reached Rp57,303,067,767, an
and monitoring are conducted at each site, from increase over the 2009 cost at
upstream to downstream and klanis, and air Rp47,901,200,679
quality is also monitored along the hauling road.
During the reporting period we did not face
any penalty or other sanction associated with
environmental regulations. (EN28) (EN30) (MM2)

Table of Management Plan at Mining Areas (EN12) (EN14) (EN26) (EN29)
Type of Impact Source of Impact Parameter Management
• Slope structuring
• Tree cutting and land clearing Degree of erotion
Land erotion • Constuction of erotion control structure
• Soil stripping and backfilling (ton/ha)
• Reclamation and revegetation
Soil chemical
• Tree cutting and land clearing
Land fertility Properties/nutrient • Reclamation and revegetation
• Soil stripping and backfilling
status
• Overburden Stripping and removal, Minister of

• Settling pond construction
Water quality mining, coal stockpiling & processing Environment Decree
• Settling pond periodic maintenance
and used lubricant spill No.113/2003
• Implementation and supervision of

• Overburden Stripping and removal, Government management action plan
Air quality
mining, coal stockpiling & processing Regulation No. 41/1999 • Procurement of operational spraying vehicle
• Procurement and installation of traffic signs
• Blasting with delay system

• Overburden stripping and removal, Minister of
• Maintenance of road and speed limit
Noise mining, coal transportation and Environment No. KEP-
• Shade tree planting particularly at
processing 48/ 11/1996
residential areas
Evenness Abundance,
• Overburden stripping and removal,
Biodiversity, • Provision of settling pond
Water Biota mining/excavation, processing, coal
domination, and • Periodic maintenance of settling pond
stockpiling, used lubricant spill
Evenness
• Road construction, tree cutting

Quality of habitat or
Terrestrial Flora and land clearing, soil stripping and • Management and security of revegetated areas
Terrestrial ecosystem
backfilling.
• Road construction, tree cutting and • Revegetation

Terrestrial Fauna land clearing, soil stripping and Evenness Index • Production of warning signs for
backfillung wild animal protection

ECONOMIC
PERFORMANCE
We have to put the desire to gain
income (profit) by promoting social
welfare (people) and environmental
sustainability (planet)
Economic achievement
Climate change
Anticorruption
Government assistance and
political independence
Local suppliers
Product management and marketing
Customer survey and privacy
Healthy business competition
Compliance with law
economic performance
We are confident that the coal industry has a

promising long-term prospect. Data published
CLIMATE CHANGE
by BP Statistical Review of World Energy in June
2010 states the global thermal coal reserves Throughout the year 2010 mining activities
was estimated at 826 billion tons, and is the also faced obstacle of rainfall, although this was
largest among all fossil fuels. With global level of not significant. PT Adaro Indonesia intensively
production as it is today, all existing reserves will conducted production during the days of low
be exhausted within 119 years. Longer than oil rainfall, and operated transportation activities
reserves that may only last for another 46 years on the days of high rainfall. With this strategy,
and gas is only left for the next 63 years. the high rainfall did not affect the production
process, so we have not set aside a budget to
In Indonesia, the existing coal deposits reached deal with this obstacle. (EC2)
104 billion tons according to the Directorate
General of Mineral, Coal and Geothermal, Ministry
of Energy and Mineral Resources (ESDM). There
are still reserves of 20 billion tons. ANTI CORRUPTION
Although this condition ensures the A stable growth cannot be separated from our
sustainability of the Company’s business and determination to implement good corporate
operations, we fully understand that the growth governance, including minimizing the
will not be achieved without the implementation opportunity of violations that could harm the
of social and environmental responsibility. In company’s finances. The prevention efforts are
short, we have to put the desire to gain income increasingly enhanced not only by revamping
(profit) by promoting social welfare (people) and the standard operating procedures (SOP) by
environmental sustainability (planet), a basic the internal audit, but also the inclusion of
concept of sustainability. counter corruption aspects in corporate code
of ethics. We should be grateful because in 2010
there was no indication of violations that could
harm the company financially and classified as
ECONOMIC corruption. (SO2) (SO4)
ACHIEVEMENT Violations that occur are generally those

of standard operating procedure (SOP).
Economic achievement is the main indicator This condition is due to the company that
of our success in maintaining and even raising continues to grow but hindered by existing
growth. The annual report data recorded that business process procedures and mechanisms.
the company’s assets until the end of 2010 were Therefore, the SOP has been gradually refined
at US$152,242,483, with net sales $2,411,971,193 and adjusted with the development of
and $42,445,506 in sales volume. (EC1) the Company as an effort to minimize the
opportunities for corruption practice. (SO4)

Economic achievement is
the main indicator of our
success

economic performance
The Company has never held anti corruption Our contribution to the local economy is
training, but we provide character building also manifested by the policy that prioritizes
briefing and training to employees in order to local suppliers, to meet the operational needs
have moral integrity that is expected to build of the Company. Until the end of the reporting
anti corruption mentality. The trainings are ESQ period 71 companies have become suppliers for
Training for Muslims and excellent leader camp PT Adaro Indonesia. As many as 56 companies or
(ELC) for non-Muslims. The level of employee 79% of them are local suppliers whose headquarters There are 71
participation in the training reached 90% of and are based in South Kalimantan and Central companies
total employees. The company also provides Kalimantan provinces. The transaction values of
have become
Axapta Course for employees in the internal the local suppliers reached 74% of the total mining
control and audit department. The training transaction value of PT Adaro Indonesia in 2010. suppliers
is related to online integrated purchase and (EC6) for PT Adaro
accounting so the risk of financial violations can Indonesia, and
be anticipated. (SO3) The policy of using local suppliers is
56 companies
complemented with a mechanism of contract
and strict supervision. We require local suppliers or 79% of
to comply with the universal values of human them are local
rights in any cooperation. However we have yet suppliers
GOVERNMENT to firmly include this as a special clause in the
contractual agreements with suppliers, as well
ASSISTANCE as with investors. (HR1) (HR2)
AND POLITICAL We have not had special human rights
INDEPENDENCE training for employees, but all employees have
to comply with the code of ethics in which
companies organize and appreciate each
During 2010 we did not receive significant individual. We also require each member of
amount of funds, as well as financial assistance security personel to understand the importance
from the government for development of of human rights in carrying out their duties,
operational activities and business of PT Adaro although in particular we have not ensured that
Indonesia. (EC4) they have to have a certificate on human rights.
(HR3) (HR8)
As a professionally managed business entity,
we firmly withdraw and are independent from
political activity and engagement with political
parties and certain politicians. During 2010 the
Company did not provide financial assistance or PRODUCT
other forms of contribution to political parties,
politicians and political activities. (SO6)
MANAGEMENT AND
MARKETING
Our main product is sub-bituminous thermal
LOCAL SUPPLIERS coal and sold under the initial brand “Envirocoal”
as it is environmentally friendly. In 2010 the
The existence of the Company directly or Company started the production of the existing
indirectly has an impact on the local economy, deposits in Wara Mine and produced coal with
through employment creation as well as characteristics similar to “Envirocoal” but has a
contribution to regional income through state lower calorific value and higher humidity. The
revenue. coal is using a new brand, “Envirocoal 5000”

to distinguish it from the previous product By the end of 2010, PT Adaro Indonesia set a
(Envirocoal 4000). The strategy to continue production target of 45 million tons but has yet
maintaining the existence of mines with to be able to meet the existing demand. (PR5)
respect to the environmental values is the one
that we strive for. (MM11) Customers are the stakeholders whose
existence must be maintained. Therefore, we
As mining products, “Envirocoal 4000” and are determined to maintain their data privacy,
“Envirocoal 5000” are not used directly by by allowing only certain employees who have
consumers, so it does not have a direct impact the duty and authority, to access the customers’
on human health. Likewise, the production data. The effort has been fairly effective, as there
activities that employ mechanization with the were no complaints or reports of loss or misuse
use of heavy equipment do not have a direct of customer data privacy. (PR8)
impact on the health of employees. Until the
end of 2010 there was no complaint or report
regarding health problems of living creatures
from the use of coal products “Envirocoal 4000” HEALTHY BUSINESS
or “Envirocoal 5000”. (PR1) (PR2)
COMPETITION
Coal is a special mining product with
specific use. Therefore, we do not carry out any We uphold the principles of fair business
promotional activities and forms of marketing competition and reject all forms of action that
communication that aim to introduce our leads to anti-competition and monopoly prac-
products to the general public, including did not tices. Our achievement as one of the largest
reclaimed any products sold. Special marketing coal producers in Indonesia cannot be separat-
communications are carried out along with ed from the positive competitive spirit by pro-
information related to the characteristics of moting the advantage of products that other
“Envirocoal 4000” and “Envirocoal 5000” products coal mining companies do not have. In 2010 we
according to the data specifications of sulfur and did not receive any charges implicating unfair
ash content. So far the information dissemination competition. (SO7)
of products has managed to meet the required
information for consumers regarding type/
specification, delivery, storage and use of coal,
and there were no complaints related to it. (EN27) COMPLIANCE
(PR3) (PR4) (PR6) (PR7)
WITH LAW
As a Company located and running its
CUSTOMER SURVEY business in Indonesia, we are subject and
adhere to the applicable laws and regulations.
AND PRIVACY All business activities and operations are
carried out with due regard to applicable laws.
We also strive to improve services to the coal Therefore, PT Adaro Indonesia during 2010
users. We conduct intensive communications never received any financial penalties or other
with them, to gather input and other issues legal sanctions, related to violations of laws and
needed for improvement of services, including regulations. (SO8) (PR9)
delivery. Particularly in 2010 we did not conduct
any surveys to identify the level of customer
satisfaction, but the demand for Envirocoal has
been on upward trend.

SUSTAINABLE HR
DEVELOPMENT

We strive to make the existence
of the Company to be able to
provide jobs for local people
Employee profile
Local employees
Freedom of association
Collective work agreement
Work days and hours
Training and career development
Remuneration and retirement
allowance

sustainable HR development
EMPLOYEE PROFILE
For us, PT Adaro Indonesia, human resources The low number of female permanent
are assets that should be given the opportunity employees was because only a few of them
for personal development. This is in line with have the competence in coal mining-related
our mission to improve the talented human jobs. A total of 691 or 52.03% of employees
resources and to produce high-caliber work in mines spread over three sites in South
professionals and leaders. Until the end of the Kalimantan and Central Kalimantan. The rest
reporting period, the number of employees of the employees work in a number of other
at PT Adaro Indonesia was 1,334 people, an locations including at the Head Office in
increase compared to the year 2009 of 1,117 Jakarta. (LA1)
people.
We ensure that there are no underage
Of the 1,334 employees, 546 people are employees. The company requires a prospective
permanent employees, 91 employees are non- employee to be at least 18 years of age and is
permanent, and 697 are outsourced workers. evidenced by possession of identity card (KTP).
As many as 515 permanent employees or (HR6)
94.32% were males while 31 others or 5.68%
were females.

As many as 871 people or 65.29% of the total Number of Employees By Age (LA1)
employees are those in highly productive age
group between 26 and 40 years old. While Year of
the number of employees aged over 51 years Employee Age
were only 37 people or 2.77%. We are also 2008 2009 2010
working to improve the quality of employees <= 25 141 169 195
by recruiting those with minimum educational
background of college. This condition is 26 - 30 284 228 294
expected to support the Company’s efforts to
31 - 35 240 259 279
keep the continuity of its business. (LA1)
36 - 40 202 209 244
41 - 45 125 138 169
46 - 50 71 94 116
51 - 55 19 20 37
Number of Employees
By Employment Status (LA1) Total 1,082 1,117 1,334
Employment Status Year of

Permanent Employee 384 408 546
Non-permanent Employee 29 105 91 Number of Employee By Education (LA1)
Outsourcing 669 604 697 Description

Employee Education
Total 1,082 1,117 1,334 2008 2009 2010
Elementary School/
268 310 319
Junior High School
Senior High School 599 564 699
Number of Employees By Gender (LA1)
College 67 68 96
Year of
Gender University 144 167 205
2008 2009 2010 Master 4 8 15
Female 51 50 58
Total 1,082 1,117 1,334
Male 1,031 1,067 1,276
Total 1,082 1,117 1,334
Number of Employees By Location (LA1)
Location of Description
Assignment 2008 2009 2010
Mine 602 597 691
Other locations 480 520 643

Total 1,082 1,117 1,334

LOCAL EMPLOYEES Number of local employees compared

to total employees (EC7)
We strive to make the existence of the
Company able to provide jobs for local people,
through a policy of employing local manpower
around the mining site. During 2010 the
number of employees originated from various
regions in Kalimantan reached 81.70% of total
employees.
2008 2008 2009 2009 2010 2010

1.082 931 1.117 937 1.334 1.090
Freedom of
Association Total Employee
Local People
We recognize employees’ right of expression
and association. The Company supports the
existence of Adaro Workers Organization (OPA),
as a legitimate organization to represent and 2008 86.04%
act on behalf of all employees of PT Adaro 2009 83.88%
Indonesia in the industrial relations. (HR5)
2010 81.70%
The support includes guarantees that there Percentage of local employees
will be no pressure on employees who become compared to total employees
members of the OPA board. The Company
also provides office space and equipment
for the operations of OPA, transportation and
accommodation for officials and members that
conduct the organization’s activities outside the
Collective Work
Company’s locations, funding to support the Agreement
OPA’s activities, as well as granting permission
to the OPA board members to leave work to The PKB that is now in force and regulates the
attend the activities of the organization, after employment relations between employees and
getting approval from management. (HR5) PT Adaro Indonesia is the reformed PKB. The
PKB was signed on December 22, 2009 and has
A total of 546 permanent employees have been registered with the Directorate General of
become members of the OPA. That number Industrial Relations and Workers Social Security,
reached 41% of the total employees of PT the Ministry of Manpower and Transmigration,
Adaro Indonesia. They are directly protected by through Decree No. Kep. 25/PHIJSK-PKKAD/PKB/
the Collective Work Agreement (PKB), which has II/2010 dated February 12, 2010. The reformed
been agreed upon by PT Adaro Indonesia and PKB will be effective for a period of two years
the OPA. However, PKB has not set a specific from the date of enactment.
time to notify employees if there are changes
in company operations. Any significant
changes to be communicated based on the
level of interest through the mechanism of the
We continuously strive to develop our human
organizational structure. (LA4) resources (HR) to be a capable, skilled with
high integrity manpower

Work Days and Hours During the reporting period, we also
organized various trainings for employees. There
are two main types of training, namely technical
We are determined to eliminate all forms of
and management trainings. Employees who
forced labor. Referring to the provisions of the
become participants in the technical trainings
PKB there are five working days per week and
reached 38 people with a total of 3,250 training
eight hours per day or 40 hours per week, with
hours. While the employees participated in
break periods to be adjusted according to the
managerial training reached 627 people with
nature of each employee’s job. (HR7)
1,200 training hours. Thus, the average number
of training hours is 4.42 hours per employee.
Employees who work beyond normal
(LA10)
working hours are counted as overtime work
and are entitled to overtime compensation,
referring to the Minister of Manpower Decree
No. Kep.102/MEN/VI/2004 about Overtime
and Overtime Payment. Overtime is basically
voluntary, except under required/urgent Number of Participants and Training Hours (LA10)
circumstances when employees may be asked
to work. (HR7) Number of Number of
Type of Training
Participants Training Hours
Technical 380 3,250
Training and Management 627 1,200
Total 1,007 4,450

Career Development
We continuously strive to develop our
human resources (HR) to be a capable, skilled
with high integrity manpower. That is why in
2010 we established HR development center,
Adaro Institute, which is integrated with the
programs initiated by PT Adaro Energy Tbk as
the parent company.
The Adaro Institute was established in the

third quarter of 2010 with a mission to develop
talented manpower as well as produce highly
qualified professionals and leaders. The Adaro
Institute effectively begins its activities in 2011.

Besides providing opportunities for In the process of performance assessment

employees to undergo the trainings, we and career development, a number of local
also guarantee each employee to develop employees have also managed to assume po-
their career. Every year the Company makes sitions of managers/senior managers. Of the
assessment of each employee’s performance, 50 managers and senior managers, as many
followed by promotion or transfer/job rotation as 16 people or 32% are local employees who
according to management needs. originated from the areas around the mining
site. This percentage was a decline from 41% in
Since 2009 we have changed employee 2009. (EC7)
assessment system from qualitative and
quantitative system, to PDS system, which is
based on the job goal. The process applies to Number of Permanent Employees
all employees regardless of their background Receiving Performance Assessment (LA12)
of gender, ethnicity, religion, race, class, or
political affiliations as well as issues that can Year of
Final Form of
lead to practice/action of discrimination. Until
Assessment 2009 2010
the end of 2010, as many as 36 employees
were promoted as the final result of their Promotion 4 36
assessment and during the reporting period
the Company did not receive any reports/ Demotion 0 0
complaints regarding discrimination at work, Transfer/Rotation 12 88
similarly, there is no labor strike that occurred
throughout 2010. (LA12) (LA13) (HR4) (MM4) Total 16 124
Management Composition (LA13)
Description
Position Number Gender Age
Male Female <30 30 - 50 >50
Subsdiary BOD - - - - - -
General Manager Operations 1 1 - - 1 -
Deputy GM 4 4 - - 1 3
Manager 16 16 - - 15 1
Superintendent 29 28 1 - 28 1
Staff 229 207 22 82 134 13
Non Staff 358 345 13 105 242 11
Outsourcing 697 676 21 264 419 14
Total 1,334 1,277 57 451 840 43

REMUNERATION AND Comparison between Remuneration and UMP (EC5)
RETIREMENT ALLOWANCE Provincial

Lowest
Mining Location Province Minimum
Employee Wage
We have remuneration system and Wage (UMP)
mechanism for the employees. One of the Warang & Dahai Southn Kalimantan 1,024,5000 1,801,000
considerations in determining the amount
Kelanis Central Kalimantan 986,500 1,801,000
of remuneration is the provincial minimum
wage (UMP). The remuneration received by Head Office DKI Jakarta 1,118,000 1,801,000
permanent employees in their respective
Notes: in IDR
mining site remains higher than the minimum
wages in the province of South Kalimantan
and Central Kalimantan. The raise in salary is
adjusted with inflation in the area of operation
and work assessment. Facilities Received by Employees (LA3)
The determination of the remuneration Employment Status

amount also considers several other factors, Type of Facility Permanent Non-permanent
such as working period and position/job title, Employee Employee
and not based on gender. Meanwhile, provision
Basic Salary provided provided
of facilities is based on employment status
of permanent or non-permanent employees. Medical Allowance provided not provided
(LA14)
Life Insurance provided provided
Work Accident Allowance provided provided
Maternity Allowance provided not provided
Retirement Provision provided not provided

In accordance with the PKB, each permanent

employee will be entering retirement at the age
of 55. We subscribe permanent employees two
years benefit programs, namely the Jaminan
Hari Tua (JHT) by PT Jamsostek and PT Manulife.
PT Adaro Indonesia is fully responsible to bear
PT Jamsostek JHT program’s premium of 5.7%
of the wages received by employees. While
JHT Manulife became a shared responsibility
between the company and employees, with
the percentage of premium to be paid is
specified in the agreement. (EC3)
Training for employees who entered

retirement is held 2 years before retirement.
However there was no training in 2010 because
there were no employees who will retire in
2012. Prior to retirement, employees are already
preparing the business to be run in accordance
with their interests, talents and skills. (LA11)
In 2010 we hired 152 new employees in line

with the expansion of operational activities. On
the other hand, there were 25 people or 4.5%
of total permanent employees who left the
Company, comprising three retired, one died
and 21 people resigned. (LA2)
We subscribe permanent
employees to two years
benefit programs, namely the
Jaminan Hari Tua (JHT) by PT
Jamsostek and PT Manulife

Syamsul Bahri, ST,
Geotechnical/Surveyor Slope Monitoring
Superintendent PT Adaro Indonesia.
“Interested in Adaro from the Start”

Since the first time he was offered to work the opportunity to take other company’s
at PT Adaro Indonesia, Syamsul Bahri had offer. However, even with such convenience ,
immediately expressed his interest. The reason Syamsul feels it would be unfavorable for the
of the man, usually called as Syamsul, was, “I Company.
was interested because of its future prospect.
I believe this company will last for a long time…” “For instance, the convenience to move to
other company could cause a vacant post of a
Over time, Syamsul is certain he made the vital position at PT Adaro Indonesia. Moreover,
right choice. According to him, he has gained the rapid development of production without
so much from PT Adaro Indonesia. “Not only being followed with the growth of employee
various benefits provided,” he said, adding, number would become an issue. “
“Here I feel that I have the freedom to develop
myself. We work according to our job portion, Syamsul believes, PT Adaro Indonesia
and a given day off to compensate the time has prepared a solution for such situations.
when we are required to work beyond our Therefore, he personally would not want
normal working hours. Besides, we also have to move to another company. “Growing
freedom in determining trainings to take three together with Adaro since it was only a small
times a year. “ company to becoming a competitive mining
company like today becomes an added value
With all that he has received, Syamsul for me. The atmosphere of a tight-knit family
admitted that he felt secure to join and work and work along with colleagues in the team
at PT Adaro Indonesia. The freedom to develop has shaped me into a strong person at PT
his competence does not necessarily close Adaro Indonesia. “

OCCUPATIONAL
SAFETY AND HEALTH
We have developed an integrated OSH
management system called Adaro
Safety, Environment, Production (ASEP)
Management System, with reference to the
regulations and standards of ISO 14001 and
OHSAS 18000
Occupational safety
Occupational health

occupational safety and health
Safety helmet
Safety glasses
OCCUPATIONAL SAFETY
As a company engaged in the mining sector,
PT Adaro Indonesia is obliged to apply the good Earmuffs
mining practices, including the fulfillment of
occupational safety and health (OSH) aspects.
Therefore, we require employees to comply
with all procedures in an effort towards OSH
operational excellence. This provision is stated in
the Collective Work Agreement (PKB) Chapter VIII,
Article 19. (LA9)
Besides we have developed an integrated

OSH management system called Adaro Safety,
Environment, Production (ASEP) Management
System, with reference to the regulations and
standards of ISO 14001 and OHSAS 18000.
All new employees are required to follow

intensive induction activities to introduce
them to occupational safety concepts and Safety vest
equipment, as well as rules and regulations
applied in the field. This aims to protect their
safety. Subsequently, the employees also
follow the next induction session and undergo
periodic evaluation process.
The company also formed an Occupational

Safety and Health Committee (P2OSH), which
is a joint committee between management In 2010 there were 15 cases of occupational
and employees in the implementation of accidents. Although this number is lower than
occupational safety and health. Chairman of 2009, but we need to reevaluate the entire
the P2OSH is General Manager of Operations system or OSH equipment, particularly due to
and the Secretary is the Head of SHE Division. two cases of fatal work accidents that resulted
The employees are represented through the in deaths. (LA7)
appointment of department heads as the
P2OSH members. In 2010, there were 18 P2OSH Two fatal accidents that occurred were
representatives from 18 departments. (LA6) accidents while operating a vehicle along
the hauling road. Internal investigation found
Through the P2OSH, employees can help that the workers were using cellular phone
monitor the implementation of OSH and provide while driving. It was a violation because
necessary suggestions for the improvement there is already a regulation on the matter
of the occupational safety and occupational that has also been socialized. Therefore, as
health implementation. Therefore, a safety talk a follow up, the Company through the Chief
is held regularly every morning involving all of Mine Engineering issued a memorandum
parties, including those in the management which essentially asked all parties to comply
and field operators. with the rules on mobile phone use while

operating a vehicle or other production
units. The memorandum also included
sanctions against the offender, which was
the prohibition to work within PT Adaro
Indonesia. The OSH regulation also applies to
all contractors and partners. We ensure that
every employee hired by contractors and
partners also have an adequate awareness of
the OSH and its application in the field.
Number of Work Accidents (LA7)
13
10
10
7
6
0 0
2008 2009 2010
Minor Major Fatality
Number of Work Hours and Lost Work Days (LA7)
Year of
Description
2008 2009 2010
Work Hours 28,193,850 35,457,975 42,062,175
Lost Work Days 388 512 12,226
The OSH regulation

also applies to all
contractors and
partners

occupational safety and health
OCCUPATIONAL Types of Training and Health Counseling for Community (LA8)

HEALTH
Number of
Type of Activities and Topics
Participants
We also ensure the implementation
of occupational health in the Company’s Promotive and Counseling
environment, for the employees and their 1. Counseling on 10 top diseases at mining operations site 1,763
families as well as surrounding communities.
During 2010 we organized various activities 2. Counseling on Mother and Child Health 220
including counseling, prevention, and medical 3. Counseling on Cataract 221
treatment to help create a healthy work
environment. (LA8) 4. Couseling on Pre-school Children’s Health 309
5. Counseling on Nutrition for Expectant Mothers 220

Through collaboration with partners
in community health centers around the 6. Counseling on Communicable HIV/AIDS for Expectant Mothers 220
mining sites, we obtained the survey results 7. Counseling on Malaria for Expectant Mothers 220
of the top 10 diseases in the community. The
upper respiratory tract infection (ISPA) was 8. Dissemination on Narcotics 1,087
identified as a disease with high prevalence 9. Workshop for Religious Counselor to counter narcotics 45
rate. The company followed up this condition
by holding a special counseling on health. 10. Workshop on Anti Narcotics Poster Competition 174
Other counselings were also held to achieve 11. Counseling on Malaria for Village Cadres 310
the fulfillment of the MDG’s (Millennium
Development Goals) and in 2011 consultations 12. Training Facilitator for Pregnancy Awareness Class 33
for employees who have potential for a disease Precautionary and Preventive
have already been planned.
1. Dengue Fever Fogging 10,841
2. Distribution of Food Supplement for Toddlers 25
3. Distribution of Food Supplement for Schoolchidren 38,428
4. Mass Circumcision 1,706
We organized various 5. Construction of toilet facilities 16

activities including 6. Exercises for Elderly 65
counseling, prevention, 7. Medical Checks on Degenerative Disease 250
and medical treatment
Curative and Medication
to help create a healthy
work environment 1. Cataract Surgery 221
2. Mass Medical Treatment 1,763
3. Cleft Lip Surgery 8

Building the
Community
In line with the Company’s policy,
approach and community development
activities are carried out prior to the
operation of coal mining
Scope of program
Empowering community economy
Care for education
Health
Socio-cultural development
Public policy contribution

building the community
Unlike other companies, PT Adaro Indonesia • Integrates with the community

has a special approach in dealing with We have never and will never build a
communities and societies in the vicinity of separate complex that is exclusive and
Company operations. We made the approach isolated from the surrounding community.
to them as the core business and delegate the Integration with the community reduces
responsibility of implementation to the highest the gap between the Company and
ranks, by involving the Board of Directors. community, so that it will eventually
support the company’s operations.
We initiated the approach to the local • Recruits local people
community with sincerity, respect, as well We believe that local communities provide
as avoid suspicion. For us, community supply of skilled workers for the company
development is an obligation, which is duly and contractors. With its experience, PT
executed with generosity, and not simply be Adaro Indonesia understands how to train
solved by providing the material assistance. and improve their skills, to be ready to work.
In its implementation, the Company made

a few guidelines as reference for all parties at
PT Adaro Indonesia, namely:
We initiated
the approach
to the local
community
with sincerity,
respect, as
well as avoid
suspicion. For
us, community
development is
an obligation

Allocation of Corporate Social Responsibility Funds (EC8)
SCOPE OF PROGRAM Subject Total budget Total realization
In line with the Company’s policy, approach ECONOMIC DEVELOPMENT 17.47% 12.44%
and community development activities are
Plantation Development 9.20% 7.48%
carried out prior to the operation of coal
mining. Similarly when the company will Husbandry Development 1.69% 0.93%
have to stop or shut down the coal mining Agriculture Development 2.30% 1.52%
operations. Fishery Development 2.15% 1.04%
Micro, Small and Medium Enterprises 2.15% 1.47%
During 2010 there was no new coal mining Development
site that operated or halted operations. The
EDUCATION 12.49% 12.23%
company only reactivated the operations
of Paringin Mine previously closed in 1999 School Infrastructure and Development 4.29% 4.87%
Assistance
as its 6x stripping ratio was considered
Scholarship 5.21% 4.23%
uneconomical. Therefore, until the end of the
reporting period, there were only three mines Others 2.99% 0.61%
operated, Tutupan, Paringin and Wara mines. HEALTH 16.93% 21.18%
The three mines are located near urban areas,
Cataract Surgery 3.37% 3.38%
and it did not cause any problems with the
indigenous people. (MM5) Community Health Improvement 2.30% 1.87%
Clean Water Facility Provision 0.84% 0.29%
The Company continues the effort to Infrastruktur Equipment/
increase production at the three mines. 0.46% 0.47%
Infrastructure Assistance
To support this, we have made thorough Clean Water Pipeline (continuation) 9.20% 13.68%
preparation since 2008, including by drafting
the Environmental Management Plan Clean Water Assistance 0.77% 1.32%
Document (RKL) that complements the Regional General Hospital
0.00% 0.16%
Analysis on Environmental Impact, as part of Balangan Renovation
the Environmental Impact Analysis Document SOCIAL CULTURE 20.53% 21.41%
(Amdal). (SO1) Sports Development 1.92% 1.15%
Religious Development 1.72% 5.82%
The development and community
empowerment programs cover economic, Art & Culture Development 0.80% 1.14%
education, health and socio cultural aspects. Village Development 4.44% 6.36%
Adaro has set the value of CSR investments Infrastructure/Equipment 10.12% 4.58%
in these aspects based on the principle
of responsiveness. This is supported by Wait Program 1.53% 2.36%
conducting the mapping of natural and human TOTAL PER SUBJECT 67.43% 67.25%
resources potentials in the surrounding OPERATIONAL COST 2.54% 3.11%
area by the Research Center for Population
SPECIAL PROJECT 30.04% 29.63%
University of Lambung Mangkurat in 2010.
Adaro Bangun Negeri Foundation 11.03% 9.97%
Integrated Husbandry 7.66% 7.38%
Primagama Tutorial Courses 7.66% 9.27%
Adaro Mandiri Village 3.07% 2.39%
Garbage Processing 0.61% 0.62%
GRAND TOTAL Rp32,625,000,000 Rp32,062,640,205
OUTSTANDING JANUARY 2011 Rp562,359,795

EMPOWERING
COMMUNITY ECONOMY
Activities in the economic aspect are aimed
at economic empowerment of the community
and implemented through several programs,
namely the development of micro, small and
medium enterprises (MSMEs), microfinance
institutions (LKM), and integrated farming.
In addition, we also organize the Village
Community Economic Movement (Gema Desa)
and the Independent Adaro Development
Movement or Gerbang Aman. (EC9)
The development of MSMEs and LKM Every year guidance and assistance are
are conducted by providing revolving loan provided to farmers and their groups. The
assistance to the MSMEs in the Tabalong, assistance provided is grants in the form of
Balangan, East Barito and Hulu Sungai Utara rubber seeds, fertilizers, herbicides and small
regencies. During 2010 we provided revolving agricultural tools. In addition, the company
loan assistance to 2,228 new MSMEs actors, an also facilitates the plantation counseling in
increase compared to the year 2009 that only collaboration with local Plantation Agency.
930 people. From around 3,158 MSMEs, 69% of
them had repaid the loan. In 2010 there were 40 groups of rubber
farmers who joined the KKU program with
We also continue the guidance and area of plantations reached 760 hectares. Thus,
development of LKM Banua Bauntung, in cumulatively since the beginning until the end
collaboration with several partners. LKM Banua of the reporting period, the land area of superior
Bauntung has become an alternative for local rubber plantations has reached approximately
communities in getting capital assistance for 5,693 hectares managed by a group of 291
the development of their economic activities. rubber farmers. The area covers 62 villages in
The amount of loans disbursed by LKM Banua the Balangan Regency, 31 villages in Tabalong
Bauntung in 2010 reached Rp8,902,893,175 Regency and 16 villages in East Barito Regency.
and 72% of the loans had been repaid by the
customers. The amount of funds that have been
disbursed reached Rp2,268,448,000 or
Development of MSMEs becomes one of Rp2,984,000 per hectare. We will continue to
our priorities because it is driving the local support this activity in order to improving the
economy that has been proven resilient and welfare of local communities, KKU program
resistant during crisis situation. Besides, the also succeeded in rehabilitating the conditions
MSMEs are also able to create jobs for local of land, which was previously abandoned land
residents. (EC9) that was not utilized economically.
Another activity is the development of

superior rubber plantation (KKU), which has
been a continuous program since 1998.

Ahmad Yani, Rubber Farmer:
Adaro Must Continue This Program
Ahmad Yani is one of the traditional rubber means: local uncultivated rubber can only be
farmers who are natives of Dahai, Paringin tapped after 15 years, while the superior rubber
District, Balangan Regency, South Kalimantan can be tapped after 5-7 years.
Province. Together with 40 other rubber
farmers, this middle-aged man has become a They were even more convinced, as the
pioneer in the superior rubber plantation (KKU) prices of superior rubber sap in the market are
program, which began in 1997. At that time, better than local rubber. Without giving price
they included abandoned forest area for rubber detail, Ahmad Yani said the price of superior
planting. “It was one hectare area of land,” he rubber is higher than local rubber. He said, “If
recalls. superior rubber is 100, the local para is 50, so it
is much higher.”
As traditional rubber farmers, Ahmad Yani and
his colleagues had hesitated when invited to Another advantage is that with the same
participate in the KKU program. According to period of tapping, the superior rubber plant
him, one of the reasons for the rejection that time that has an average of 20 tapping days in
was, “We were worried that we migh suffer losses.” a month is able to produce six buckets.
Meanwhile, local rubber can only produce
However after going through a long dialogue, maximum two buckets. The average weight of
they finally were willing to include their land in the one bucket of rubber sap is 10 kilograms.
program that was initiated by PT Adaro Indonesia.
Ahmad Yani and his friends received assistance in With these advantages Ahmad Yani is
the form of superior rubber seeds, fertilizer, spray hoping that the KKU program will continue.
and even counseling during the cultivation process. “Untuk akan datang dibantu kebun karet,
Their doubts vanished after seeing the superior soalnya banyak nang dikaruk Adaro ini,
rubber plants are more promising than the local diteruskan gitu,” he said, which more or
rubber. less means: In the future, I hope there will
be more assistance for rubber plantations,
“Para lokal kada pati dirawat ganal haja, 15 because there are many more that can be
tahun hanyar ditoreh. Amun para unggul, 5-7 produced by Adaro, so it would be better if
tahun ditoreh,” he said in local language, which this program will still continue.
We also join hands with Islamic boarding The preparation of pilot villages involved a
schools to be directly involved in efforts to team from the Bogor Institute of Agriculture
empower the community. The Company (IPB), who provided assistance. After having
provides grants and revolving loans, to be been faced with obstacles of the residents’
used by the boarding school to finance their indifference and suspicion, the preparation of
activities in various fields, especially agriculture pilot village program has started to gain interest
and animal husbandry. The involvement of following the success of several pilot programs
the Islamic boarding schools is expected to that have been previously implemented.
convince the community to jointly develop
existing local potentials to create economic The preparation of pilot villages involved a
independence for local communities. team from the Bogor Institute of Agriculture
(IPB), who provided assistance. After having
One of the Islamic boarding schools that been faced with obstacles of the residents’
received the assistance in 2010 was Pondok indifference and suspicion, the preparation of
Pesantren Hidayatullah, in Maburai Village, pilot village program has started to gain interest
Murung Pudak District, Tabalong Regency. Total following the success of several pilot programs
assistance that has been disbursed reached that have been previously implemented.
Rp37,630,000, which was used to build six
floating fish cages consisting of 2 wooden
floating cages and 4 floating net cages. All of
the fish harvested will be sold and the proceeds
will be used to support the Islamic boarding
school’s activities in improving its students’
welfare.
We also have begun to think about the

preparation of an independent post-mining
community, although mining activities will
still operate in a relatively long run. From
the mapping that has been conducted, the
Company identified 61 villages in the ring 1
or in the vicinity of operational activities that
should be prioritized, related to the post-
mining implementation. All villages are
located in six regencies in South Kalimantan
and Central Kalimantan provinces.
For this reason, in 2010 we continued the

implementation of the Independent Adaro
Development Movement or Gerbang Aman,
which is an activity to prepare and develop a Fish pond in Pondok Pesantren Hidayatullah
model of independent villages. The villages
that became pilots are Dahai Village and
Padang Panjang Village, located in Tanta
District, Tabalong Regency, South Kalimantan
Province.

SMP Murung Pudak Principal dialogue with students. Tuti Mislinda, a beneficiary of Adaro Indonesia’s
scholarship program.
Our concern in education is manifested in Scholarship Recipients

several programs, namely:
• The teacher quality improvement University
and school management programs. 2008 = 86
• Procurement of mobile library to meet 2009 = 134
students’ interest in reading. 2010 = 306
• Providing scholarships for underprivileged
students and scholarship for outstanding
students. Senior High School
• Improvement and provision of 2008 = 180
educational facilities. 2009 = 140
2010 = 107
The teacher quality improvement and school Junior High School

management programs are implemented 2008 = 466
by sending teachers and principals to attend 2009 = 430
various trainings. They come from various 2010 = 115
schools in Tabalong, Balangan and East Barito
regencies.
Elementary School
During 2010, 575 teachers and principals 2008 = 1,033
attended the trainings, consisting of: 2009 = 1,316
2010 = 684
• 455 teachers and principals from
Tabalong Regency.
• 39 teachers and principals from
Balangan Regency.
• 81 teachers and principals from Other activities are tutoring assistance for
East Barito Regency. students who would take national examination
(UN), in collaboration with Primagama. During
2010, 99% of 2.408 students who took the
We also continue the development of pilot preparation tutoring passed the examination.
schools that had begun in 2009, including They consist of 1,571 junior high school
three elementary schools (SD), 3 junior high students and 891 high school students.
schools (SMP) and 2 senior high schools (SMA).
The pilot schools are located in Tabalong and The high interest of students to grow
East Barito regencies. Until the end of 2010 the has encouraged us to provide funds for the
conntinued assistance that has been realized establishment of learning center in Tanjung.
were development of libraries and Natural Through this learning center, the student
Sciences laboratories. PT Adaro Indonesia also empowerment will be more optimal, as well as
continued its scholarship program during 2010. enhancing the knowledge and skills of students
and youth in general.

Firman Yusi
NGO Founder and
Executive Director
of Seraba Kawa
Learning Center
I USED TO SEE ADARO AS

ENVIRONMENTAL OFFENDER, IN FACT…
As an activist his view towards PT Adaro “The Seraba Kawa Learning Center is a
Indonesia has been filled with prejudice since learning center dedicated to community
the very beginning. Firman said, “I used to think resources development and to reduce their
that Adaro was an environmental offender and dependence on Adaro. In its implementation
would bring a culture that might change the the learning center does not only accept
indigenous culture.” financial assistance but also tutors,” Firman Yusi
said about his current activities.
Therefore, Firman Yusi and his fellow
activists fought against the presence of PT PT Adaro Indonesia continues to facilitate
Adaro Indonesia, which was suspected might activists of Seraba Kawa Learning Center, by
potentially damage the environment and the providing training on good reporting and
local social culture. It was a long and exhausting assistance in resolving various obstacles.
struggle, because the prejudice was responded Gradually, Firman Yusi and his colleagues are
by PT Adaro Indonesia with transparency and able to develop themselves including setting
awareness programs. up their own fund raising system to become an
independent organization.
Those actions have led Firman Yusi to
a conclusion. “I can turn the Adaro Cares Now, after directly involved in the
programs into opportunities....” collaboration of community empowerment,
Firman Yusi has another view towards the
Then a series of discussions were held to presence of PT Adaro Indonesia. He said,
find solution from the desire to empower “Learning from Adaro, I now can see it as an
local community. Until July 17, 2010, with the individual, not as a corporate. I hope in every
support from PT Adaro Indonesia, the Seraba discussion, I can open up more. As well as my
Kawa Learning Center was established in friends who may not be able to open up yet.”
Tabalong Regency.

HEALTH Ranti, Participant of the 'Ibu Darlan' class
In health, we pay special attention to
maternal, newborn and child (Kibilla) health. All Expectant Mothers
This is due to the high infant mortality rate and
maternal mortality during childbirth. Through
Should Go to Ibu Darlan Class
the implementation of the program that
resumed in 2010, we expect for better health Ranti was expecting her second child when she participated in
level of mothers and newborns. ibu darlan class. The age difference between her first child and the
second one was five years. After giving birth to her second child,
In 2010 we also intensified the Ranti felt the difference was significant after she attended the ibu
implementation of the expectant mothers darlan class. She said, “I only felt the pain briefly, the midwife picked
awareness class or ibu darlan class, which is part me up at 7 AM, at 1 PM my baby had already been born. As for my
of Kibilla program with a focus on guidance and first child, I had to endure the pain the entire night, then I went to see
monitoring of expectant mothers until they the midwife the next morning and only gave birth around the time
give birth. The implementation of activities of the evening prayer.”
in the ibu darlan class adopted the model
developed by the Center of Mother Education Ranti said she learned a lot of things. Speaking in Bahasa Indonesia
of Germany and also the Ministry of Health. mixed with local accent, Ranti said, “There were a lot of things that I
Until the end of 2010 the ibu darlan class has a learned which I previously knew nothing about, such as taking care of
membership of 240 expectant mothers, across pregnancy, new information, and most of it all the food restrictions.
Balangan Regency and Tabalong Regency. The doctor was very good, and if something was unclear, the doctor
and midwife would explain it thoroughly.”
So far we should be happy because of the
ibu darlan class was able to suppress mortality With her experience, Ranti hopes the participants in ibu darlan
rate of infant and maternal postpartum birth. class will be increased. If necessary, all expectant mothers are given
Data taken from 148 expectant mothers in the opportunity to attend this class.
the ibu darlan class who later gave birth,
indicated that the safety rate reached 97.97%.
While birth defects were recorded at 0%, low
birth weight was only 0.67%, and the infant
mortality also reached 0.67%. There was
indication that the infant mortality cases were
caused by the expectant mothers who were
late to participate in counseling activities, so
that the health of the unborn babies as well as
prevention efforts cannot be maximal.

SOCIal CULTURe
DEVELOPMENT
There were three main activities implemented
during reporting period, namely religious,
sports and art & culture development.
The mining working area of PT Adaro

Indonesia covers the region inhabited by two
major tribes in Kalimantan, the Banjar tribe
whose majority of members are Muslims and
the Dayak tribe who are mostly Christians.
Therefore, the main programs in religious
aspect are development assistance and houses
of worship renovation, both mosques and
churches. During 2010, we have helped the
construction, renovation and maintenance
of 72 units mosque/ prayer room, as well as
assistance to Islamic boarding schools or other
educational institutions. In addition, we also
helped the renovation and construction of
churches and other religious activities such
as general synod and national church choir
festival (Pesparawi).
In the field of sports, we have been providing

coaching and sports facilities for the 11
branches of sports that grow in the six regencies,
within the working area of the Company. The
11 sport activities are managed by the 27 clubs
fostered by PT Adaro Indonesia.
The arts and cultural development activities

are carried out by providing a facility to
preserve the various forms of traditional arts and
culture, among them fostering dance studio.
There are several dance studios developed
by PT Adaro Indonesia, which spread in Barito
Kuala, East Barito and Tabalong regencies. We The arts and cultural
also helped develop contemporary art and
cultural activities, including marching bands development activities are
and drum band, which received enthusiastic carried out by providing
response from the community. a facility to preserve the
various forms of traditional
arts and culture

PUBLIC POLICY The Company’s active involvement regarding
public policy has received appreciation and
CONTRIBUTION recognition from various parties. Now we are
trusted to hold a position as the Chairman of
the CSR Society of Coal Mining Exploitation
We strive to be involved either directly or Work Agreement (PKP2B) and contract of work
indirectly in the preparation of various public of South Kalimantan Province. In addition, the
policies by the central and local governments. Company also was elected as a Chairman of the
One of them is the Company’s participation Corporate Forum for Community Development
in the discussion of a number of policies and (CFCD) of South Kalimantan Chapter.
development planning forum (musrenbang) Participation in CFCD and CSR societies aims
by local governments. The company’s to improve the quality of the establishment
involvement is especially in discussing the of CSR programs through the socialization of
material of public policy, strategic planning good activities examples and the prevention of
on education, poverty alleviation and overlap in the CSR implementation.
development of superior products. (SO5)

What
They Say
Although there have been many
assistance provided by Adaro, we feel the
community still needs to be educated
Abdel Fadillah
Regional Secretary and Head of CSR Drafting Team
Agus Dwiwidianto
Project Manager of PT Pamapersada Nusantara
Setiabudi
Operational Manager
of Adaro Bangun Negeri Foundation
Abdul Karim
Owner of Drinking Water Refill Station “Rezky Ajib”
Arif Rahman
Operating Officer of Forest Honey Venture
“UD. Tiga Wangi”, Tanjung
Eli Durgawati
Housewife,
Activist of Tabalong Local Community

what they say
“Adaro Improves
Local Economy”
“It is inevitable that the presence of PT Adaro
Indonesia has improved the community’s
economy and reduced poverty, which is realized
with the employment outside of agriculture
and plantation sectors. The presence of PT
Adaro Indonesia also has directly driven up
land prices. People used to be reluctant to buy
the roadside land even though it was only Rp
50,000 per meter, but now the price per meter
has reached more than 2 million rupiah,” said
Abdel Fadillah, Secretary of Tabalong Regency.
It is undeniable that the existence of PT

Adaro Indonesia has also drawn a negative
impact on the environment and social life. This
can often result in dispute with the community.
However it is understandable considering the
mining operations have direct interactions with
nature and people. Therefore, we expect the
government’s role to mediate differences and
synergize them in a consensus.
“Along with the drafting team of corporate

social responsibility or CSR, we participated
in identifying the needs of stakeholders, and
observation conducted by PT Adaro Indonesia
in the economic, social, and environmental
programs for the community. So far there are
already some tangible benefits that can be
enjoyed by the public. They include provision of
clean water, construction of the Islamic Center,
amusement parks, and later the urban forest.
All this can pave the way to create harmony Drs. H. Abdel Fadillah
between the Company and the community.”
Regional Secretary and Head of CSR Drafting Team

“We are Challenged
by Adaro’s
Sustainability
Concept”
We grew up with PT Adaro Indonesia. It is
initially only mined, extracted and transported
the coal to the port. But all was different since
2004, when PT Adaro Indonesia introduced the
mining activities with sustainability principle.
It is a challenge for us to operate better with
respect to stakeholders. Therefore, we also
conduct activities outside of mining, such as
helped build road widening, overcoming mud,
as well as building the Adaro Pama Institute of
Education and Potential Development (LP3AP).
With the presence of PT Adaro Indonesia,

we take part in the development of regional
economy, economy, education, health and
social culture. This is realized by the inclusion
of local residents as workers. Initially our
employees were only hundreds of people, but
now there are 3,345 employees in the mining
operations operating and the majority are
locals.
We are proud to be able to realize various

sustainability programs and creating conducive
working environment in the community. Along
with PT Adaro Indonesia and other business
partners, as well as government support and
empowerment of local communities, we will be
able to contribute more to all parties.
Agus Dwiwidianto
Project Manager of PT Pamapersada Nusantara
(Business Partner)

what they say
STRATEGIC PRESENCE
OF ‘ADARO BANGUN
NEGERI’ FOUNDATION
Adaro Bangun Negeri Foundation (YABN)

was established in 2009 by PT Adaro Energy Tbk
and PT Adaro Indonesia. Its aim is to strengthen
the implementation of corporate social
responsibility (CSR) in the long run. In 2010, we
have coordinated CSR programs in four aspects,
namely education, health, socio-cultural and
economic aspects.
With 34 employees we have realized various

CSR activities based on YABN road map until
2014. The existence of YABN is considered very
strategic for the community because it can plan
and implement programs that have not been
touched by the Company.
The obstacle that we faced today is the lack

of data availabity that can be used by YABN for
program planning. Therefore, we conducted
a survey to get a clear picture of the socio-
cultural map in the vicinity of the Company.
This is necessary in order to allow us to plan
the appropriate socio-cultural programs and
needed by the surrounding community, both
in the short, medium and long term.
Setiabudi,
Operational Manager of Adaro Bangun Negeri Foundation

“We Grow Because
of Adaro”
In 2005 we initially borrowed money from
microfinance institution (LKM) Banua Bauntung
fostered by PT Adaro Indonesia. The loan at the
time was of Rp 300.000, which we then used
to raise capital in the catering business. Three
years later, in 2008 we ventured to apply for a
loan of Rp 10,000,000 to LKM Banua Bauntung
as initial capital to open a drinking water refill
business.
Unexpectedly, our business grew rapidly. Today

our average earnings from refill drinking water
business can reach between Rp 2 million and
Rp 2.5 million per month. The earnings are not
including the sales of fixed monthly order from
corporate of gallon water that could reach Rp
10 million. We also have additional income from
catering service that still runs until today. We
are grateful to be able to start and develop the
business thanks Adaro through its fostered LKM.
So far we never had problems in repaying

the loan installments. Our business continues
to grow, even today we often refuse large
orders because we do not have the car for
delivey. LKM has good service and we hope
the loans from LKM can be expanded again for
small entrepreneurs. For instance, higher loans
that we could borrow to purchase a vehicle.
Currently our two motorcycles that we usually
use to deliver water are ageing. If there is an
order of 500 gallons of water, I unfortunately
have to turn it down. We don’t have the capacity. Abdul Karim
Owner of Drinking Water Refill Station “Rezky Ajib”

what they say
“Without Adaro’s
Support We
Would Not Have a
Marketing Space ”
This venture is a business that has been
passed down from generation to generation in
our family and now it is owned by my father,
H. Amid Han. This is a business that had been
pioneered since the 1980s and used to be an
average business. We have years of experience
in running a forest honey business, including
determining the quality. Many people offer
low-quality honey, but we did not do that.
Therefore, our honey business can survive, but
this is not enough.
At first we were offered to be fostered by

Adaro. Previously, we did not have a special
place of production and marketing. All was
operated from home. Until now, we have been
fostered for two years through trainings of
management and quality, equipment purchase
and capital. Without Adaro’s support, we would
not have our own marketing space like this.
Our current honey buyers come from

other cities and provinces. Every month we
can sell 250 liters of honey at the price of Rp
120,000 per liter. We personally take charge of
maintaining the quality of honey. In general,
the consumers are satisfied with the quality of
products that we produce traditionally, from
forest honey. Our honey product has a high
viscosity, the distinctive scent of forest flowers Arif Rahman
and definitely nutritious for health. This what Operating Officer of Forest Honey Venture
makes our product different from any other
honey products. “UD. Tiga Wangi”, Tanjung

“Adaro Helps in
Various Areas”
In the past, problems that arose between Adaro
and the community were due to social jealousy.
But now it does not happen again. “People now
generally see that Adaro has helped them in many
areas, it is up to people to utilize the assistance
provided for future development.”
Although there have been many assistance

provided by Adaro, we feel the community still
needs to be educated. One of the examples
is the education about healthy lifestyles. In
general the local economy has already been
improving, but in terms of sanitation it is still
lacking. There are still many people who do
not have a toilet so that they defecating and
dispose garbage into rivers. We hope Adaro is
willing to help build toilets with at least 2 public
toilets in every neighborhood unit (RT). We also
hope that the Dahai Village and Padang Panjang
Village can become pilot villages.
In terms of education, university graduates

are still rare in our region. The highest level was
diploma (D3) degree. The local people’s way of
thinking here, especially women, is that they do
not need high education because they would
eventually only become a housewife. Lifestyle
of the community here has also become
consumptive after receiving compensation for
land acquisition. This way of thinking needs to
be changed and Adaro is expected to help. Our
other hope is that people can buy back the land
that has been reclaimed by Adaro so that it can Eli Durgawati
be managed independently.
Housewife, Activist of Tabalong
Local Community

GRI INDEX AND Metal and Mining Sector Supplement (3.12)
Indicator Description Page(s) Indicator Description Page(s)
STRATEGY AND ANALYSIS

1.1 Message from President Director 2 Commitment to External Initiatives
1.2 Main impacts, risks and oppurtunities 2 4.11 Prevention for company risks 24
4.12 Adherence to the principle of economic,
environment and social 25
ABOUT US 4.13 Membership in associations 25, 79
2.1 Name of organization 6
2.2 Brands, products and services 6 Stakeholders Engagement
2.3 Structure of organizational 6, 20 4.14 Stakeholders 25
2.4 Head office location 6 4.15 Identification and selection of stakeholders 25
2.5 Numbers and countries name where 4.16 Approach to stakeholders engagement 26
company operates 6 4.17 The results of stakeholder engagement 26
2.6 Corporate legal entities form 7
2.7 Markets served 6, 10
2.8 Scale of organization 7 ECONOMIC PERFORMANCE
2.9 Significant changes during Achievement
reporting period 6 EC1 Gain and distribution of economic value 48
2.10 Awards received 8 EC2 Implications of climate change 25, 48
EC3 Employees pension fund 60
EC4 Government financial assistance 50
REPORTING PARAMETERS
3.1 Reporting period 14 Market Presence
3.2 Date of issuance of the previous report 14 EC5 Minimum wage 59
3.3 Reporting cycle 14 EC6 Local suppliers 50
3.4 Company contacs 14 EC7 Local employees 56, 58
Scope and boundary Indirect Economic Influence

3.5 Determining the Contents of the report 15 EC8 Infrastructure development 71
3.6 Scope of reporting 15 EC9 Indirect economic impact 72
3.7 Boundary of reporting 15
3.8 Basic reporting 15
3.9 Basic and data collection techniques 15 ENVIRONMENTAL PERFORMANCE
3.10 Explanation for the impact of restatement 15 Material
3.11 Significant changes over previous report 15 EN1 Material usage 30
EN2 Recycled material usage 30
GRI Content Index Energy

3.12 Disclosure of the location table 90 EN3 Direct energy utilization 32
EN4 Indirect energy utilization 32
Assurance EN5 Energy savings 33
3.13 Assurance policy by external parties 15 EN6 Product-based energy saving initiatives 33
EN7 Initiatives to reduce indirect energy 33
GOVERNANCE, COMMITMENT AND ENGAGEMENT Water

Governance EN8 Water usage 34
4.1 Structure of organization governance 19 EN9 Water sources affected 39
4.2 Highest positions of governance 19 EN10 Water recycled 34
4.3 Stewardship agency unitarian and
independent membership 19 Biodiversity
4.4 Delivery mechanisms recommendation 23 EN11 Mining location and protected forests 35
4.5 Compensation and performance 19 EN12 Biodiversity protection 36, 44
4.6 Avoidance of conflict of interest 23 EN13 Habitat rehabilitation 36
4.7 Board qualifications 19
4.8 Economic,environment and social values 9, 23
4.9 Performance monitoring procedures 23
4.10 Board evaluation procedures 19, 23

Indicator Description Page(s) Indicator Description Page(s)
EN14 Strategy to maintain biodiversity 36, 39, 44 HR3 Human rights training for employees
EN15 Protected species 36 HR4 Discrimination at work and
in employment 58
Emissions And Waste HR5 Rights of association 56
EN16 Greenhouse gas (GHG) emissions 37 HR6 Child worker and underage worker 54
EN17 GHG from relevant sources 37 HR7 Forced labor 57
EN18 Initiatives to reduce GHG emissions 37 HR8 Security officers with certificate
EN19 Gas reduction of ozone layer depletion 37 of human rights training
EN20 NOx; SOx; dan other particulates 37 HR9 Violation to the rights of indigenous people 35
EN21 Effluent water quality and detination 34, 38,
39, 42 Society
EN22 Volume dan disposal methods 41, 42 SO1 Impact of the company’s operations
EN23 Volume of spills 42 to community 71
EN24 Toxic and hazardous waste transportation 41 SO2 Business unit and corruption risk 48
EN25 Biodiverstiy in water bodies 39 SO3 Anti corruption training 50
SO4 Corruption prevention 48
Products And Services SO5 Participation to public policy 79
EN26 Environmental impacts reduction 44 SO6 Contribution to political
EN27 Percentage of product packaging recall 51 party and politician 50
SO7 Healthy business competition 51
Compliance SO8 Legal sanction on violation of law 51
EN28 Violations of environmental regulations 43
Product Responsibility
Transportation PR1 Product cycle and safety 51
EN29 Impact of products transportation 43, 44 PR2 Violation of product safety regulation 51
PR3 Information of product Content 51
Overall PR4 Violation of product content
EN30 Environmental cost information availability 51
43 PR5 Customer satisfaction level 51
PR6 Feasibility of marketing communications 51
PR7 Violation of marketing
Social Performance communications practices 51
Employment PR8 Claims on customer’s privacy violation 51
LA1 Number and employees composition 54, 55 PR9 Sanction on violation of procurement
LA2 Rate of employees turnover 60 or product consumption 51
LA3 Compensation for employees 59
LA4 Collective working agreement 56
LA5 Notification of operational changes 56 MINING AND METAL SECTOR SUPLEMENT (MMSS)
LA6 Occupational safety and health assembly 64 MM1 Management of post-mining land
LA7 Rate of work accident 64, 65 MM2 Management of biodiversity 43
LA8 Educational and training of health 66 MM3 Material management 30
LA9 Occupational safety and health MM4 Employees strike
on collective working agreement 64 MM5 Mining operation on
LA10 Training for employees 57 indigenous people’s land 71
LA11 Retirement preparation program 60 MM6 Dispute with indigenous people 35
LA12 Work assessment and career development 58 MM7 Resolution of land dispute with
LA13 Employees diversity 58 indigenous people 35
LA14 Salary ratio of male employees MM8 Management of people-scale mine 35
to female employees 59 MM9 Relocation of indigenous people’s residences 35
MM10 Percentage of post-mining
Human Rights land rehabilitation
HR1 inclusion of human rights clause MM11 Management of material supplies 50
in investment agreement
HR2 Inclusion of human rights clause in
cooperation agreement with suppliers 50


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Sustainability Report 2010

Sustainability Report 2010

table of contents This page is

Laporan Keberlanjutan 2010

What They Say

Laporan Keberlanjutan 2010 PT ADARO INDONESIA

2 Laporan Keberlanjutan 2010 PT ADARO INDONESIA

Laporan Keberlanjutan 2010 PT ADARO INDONESIA 3

We Are: PT Adaro Indonesia

Laporan Keberlanjutan 2010 PT ADARO INDONESIA 5

We Are: PT Adaro Indonesia

Our main product is the processed coal,

6 Sustainability Report 2010 PT ADARO INDONESIA

Number of Employees 1,082 1,117 1,334

Total Net Sales (US$) 1,617,765,114 2,406,903,867 2,411,971,193

Total Capitalization (Million US$)

Quantity of Product Sold (Metric Ton) 39,798 41,080 42,450

Total Assets (US$) 1,285,154,748 2,303,408,132 2,411,971,193

Share Ownership (%) (2.6)

Sustainability Report 2010 PT ADARO INDONESIA 7

8 Sustainability Report 2010 PT ADARO INDONESIA

Sustainability Report 2010 PT ADARO INDONESIA 9

Awards Received (2.10)

10 Sustainability Report 2010 PT ADARO INDONESIA

To be the leading Indonesian mining Corporate

Sustainability Report 2010 PT ADARO INDONESIA 11

Laporan Keberlanjutan 2010 PT ADARO INDONESIA 13

This report is a continuation of the 2009

We expect feedbacks for this report, in form

2. PT Adaro Indonesia PROGRAM INTERMEDIATE TARGET FINAL OBJECTIVE

INDEPENDENT COMMUNITY CRITERIA:

14 Sustainability Report 2010 PT ADARO INDONESIA

SCOPE OF THE REPORT

In this 2010 Sustainability Report, we

Sustainability Report 2010 PT ADARO INDONESIA 15

Organizational structure diagram

Laporan Keberlanjutan 2010 PT ADARO INDONESIA 17

18 Sustainability Report 2010 PT ADARO INDONESIA

Sustainability Report 2010 PT ADARO INDONESIA 19

organizational structure diagram

Strategic Geology & Business Paringin Production Mine

Haul Road Environmental North.Prod.

20 Sustainability Report 2010 PT ADARO INDONESIA

Land External Bjrn. Rep. Shipping

Operations Maintenance Admnistration CSR Project Land Shipping

General Affair CSR Bina Public media

Sustainability Report 2010 PT ADARO INDONESIA 21

DISCLOSURE OF AVOIDING CONFLICT

Sustainability Report 2010 PT ADARO INDONESIA 23

In general, the Company

24 Sustainability Report 2010 PT ADARO INDONESIA

Sustainability Report 2010 PT ADARO INDONESIA 25

Methods of Approach to the Stakeholders (4.16) (4.17)

Stakeholders Method and Type of Approach

• Periodic meetings with the Board of

• Empowerment and improvement of welfare and quality of life

• Provide sufficient remuneration and benefits by taking

• Adhere to and abide by the laws and regulations.

• Provide information regularly regarding achievement

26 Sustainability Report 2010 PT ADARO INDONESIA

Laporan Keberlanjutan 2010 PT ADARO INDONESIA 27

Laporan Keberlanjutan 2010 PT ADARO INDONESIA 29

We integrate all mining activities under the

Emulsion Kg 8,364,266 21,675,957 18,991,256