Our Communities: A Continuing Partnership

As a result of Indonesia's ongoing economic and social challenges, the demand for PT Inco to be even more actively involved in our communities has intensified. “To respond to this need, we recently established four Community Advisory Committees composed of local Indonesian leaders in three surrounding districts and communities in the Sorowako area," says PT Inco's Chief Executive Officer, Bing Tobing. “Our goal is to work in partnership to make sure that our contributions are effective – doing the most good for the most people and helping to build stronger, more resilient communities.”

Working with our Community Advisory Committees, we contributed more than $3 million to local communities in 2002 and 2003, funding more than 70 distinct programs and activities in Sorowako and vicinity as well as in Southeast Sulawesi and Central Sulawesi provinces.

Promoting Education and Training

As in the past, a considerable portion of our $1.2 million contribution was directed to providing better educational opportunities. Our support included scholarships to 100 high school students, 50 university undergraduates and 10 post-graduate students.

Under the terms of a cooperative program between Hasanuddin University and PT Inco, 20 students and four lecturers spent two semesters in 2002 at our facilities learning how people work and completing projects in an industrial setting. PT Inco also provided work experience for nearly 200 undergraduate students from universities across Indonesia. In addition, over the past two years, we provided job training at PT Inco to nearly 75 high school and non-technical university students. We also funded youth training workshops in the nearby villages of Nuha, Towuti and Malili for welders, masons and mechanics.

PT Inco encourages education in remote and isolated locations within its concession areas by providing financial assistance to teachers' college graduates assigned to these locations. In 2002 and 2003, 27 teachers selected jointly by a teachers' college and village chiefs were sent to three remote districts. We also gave supplemental financial assistance in these remote districts to nearly 600 teachers employed by the Government of Indonesia.

In cooperation with the Indonesian government, we also began to develop a new Industrial Training Program in 2003. Beginning in 2004, 100 local high school graduates will be chosen each year to participate in a two-year skills training program that will be delivered by teachers hired by PT Inco. Although PT Inco does not guarantee jobs to graduates, we are directing the training program at developing skilled workers in areas where we have identified future employment needs.

Advancing Health Care

We continue to emphasize health, allocating $800,000 for this purpose in 2002 and 2003. During the period, our hospital provided free medical treatment to 9,000 PT Inco employees and their dependants. As well, we provided free or subsidized medical treatment to 15,000 local people who were not directly associated with PT Inco and who otherwise could not have afforded medical assistance.

Health education is also an area of focus for PT Inco. In 2002 and 2003, we developed public education programs to promote drug awareness as well as proper sanitation and food handling practices. PT Inco also funded paramedic services in the villages of Bantilang and Tokalimbo and the district of Towuti. Funds were also used to build two community walk-in clinics in the villages of Balambano and Asuli. The company additionally renovated a third walk-in clinic in the village of Ledu-Ledu.

Improving Agriculture

Our commitment to serving as facilitators of community development is reflected in our support of many agricultural practices and programs. For instance, over the last two years, we continued to guarantee loans for local farmers to buy fertilizer. We also helped poultry farmers in Wasuponda and Malili by providing credit guarantees for bank loans. PT Inco also arranged for agriculturalists to train farmers in new techniques to raise crop yields.

Supporting Infrastructure Development

Our company also continued to support infrastructure development, so necessary to the well-being of communities. Over the last two years, PT Inco has assisted in the construction of potable water distribution, the maintenance of street lighting and the collection of waste in the communities of Sorowako, Wawondula and Wasuponda.

As well, we repaired two damaged schools in the district of Towuti and built two new school buildings. Meanwhile, we provided funding for the completion of four new school buildings in the district of Nuha and for improvements at a school in the district of Malili.

Encouraging Local Enterprise

PT Inco also promotes the creation and development of local enterprise. Our policy is to hire local businesses, contractors and suppliers whenever possible. In 2002 and 2003, we directed business to local contractors providing services that include garbage collection, cleaning services and maintenance. Over the two years, the company paid a total of $5 million to our 10 largest local contractors in Sorowako alone.