Contributing to Society

For 35 years, PT Inco has been committed to providing support to help people in their daily lives and improving the standard of living in the communities where we operate in Indonesia.

Under our Contract of Work agreement – signed initially in 1968 and amended and extended in 1996 – PT Inco has made a significant contribution to the Indonesian economy through the payment of royalties, water levy, land rent and taxes and by the purchasing of supplies, services and equipment from other Indonesian companies.

As part of our commitment to ensuring that as many Indonesians as possible benefit from the country's rich resource heritage, PT Inco made a public offering of 20 per cent of our shares in 1990 in Indonesia to enable them to become PT Inco shareholders. Today, nearly 12 per cent of our PT Inco public shareholders are residents of Indonesia. More than 15 per cent of our employees own shares of PT Inco.

In carrying out our business, PT Inco and our subcontractors also endeavour to and we do utilize Indonesian services, raw materials produced from Indonesian sources and Indonesian-manufactured products to the extent such services, materials and products are available on a competitive time, cost and quality basis. In 2002, the total value of goods purchased in Indonesia under this program was $62 million and $11 million was paid to local contractors. In 2003, the total value of goods purchased in Indonesia was over $60 million and approximately $13 million was paid to local contractors.

Our 2003 Contribution: Indonesia (All dollar amounts in millions of U.S.$)   Total Employees 2,977 Wages, salaries and benefits other than post-retirement benefits 34.0 Post-retirement benefits 4.0 External employee training 0.5 Expenditures for employee health programs 3.5 Operating, capital and community-related expenditures 232 Nickel production royalty 7.0 Water levies and land rent 4.0 Total contribution 285 Direct contribution to the community 140   See Glossary for definitions of key terms including: post-retirement benefits; operating, capital and community-related expenditures; indirect taxes; and direct contribution to community.