Corporate Social Responsibility (CSR)

 

Lonsum is fully aware of its responsibilities to the environment and the communities impacted by its operations. It always considers the importance to integrate community and environmental priorities into the Company’s day-to-day business operations. This is based on a belief that the Company’s long term sustainability is dependent upon the creation of a harmonious relationship with all stakeholders.

Lonsum’s Corporate Social Responsibility programs are developed based on the principles of triple-bottom-line, which focuses on the balance of financial performance (profit), society (people) and environment (planet). These programs cover the following four key areas: environmental management; labor, occupational safety and health practices; social and community development; and product responsibility.

Social And Community Development
Lonsum’s social and community development programs have been translated into the following five pillars:
1. Building human capital;
2. Strengthening economic value;
3. Solidarity for humanity;
4. Outreaching the community, and
5. Environmental protection.

Building Human Capital

The Company recognizes that education is essential in building human capital. In this area, Lonsum continued to provide support to communities surrounding to its plantation estates.Each year the Company through ‘Lonsum Peduli’ provides scholarships for children from under-privileged families living in the surrounding of Lonsum’s estates. Through this form of assistance, Lonsum wanted to help these children to achieve their full potential.

 To help improving the education process, Lonsum regularly organizes curriculum development programs, workshops and training sessions attended by teachers from schools located around its plantation areas. The Company also helps recruiting teaching assistants to work in schools with insufficient number of teachers, and continues to provide honorarium support for temporary teachers working in communities in its plantation estates.

In 2014, Lonsum also participated in the construction of three school units in South Sulawesi, two units in South Sumatra and one unit in East Kalimantan. During the year, the Company also gave support for the rehabilitation of various learning facilities and provided several educational tools covering marching band music instruments and sports equipment.

In partnership with IHF (Indonesia Heritage Foundation) Jakarta, in 2014 the Company organized Teacher Character Building Training for Primary School Teachers in Depok, West Java. The program was attended by 42 primary school teachers from 8 Lonsum’s estates in South Sumatra. The purpose of the program is to introduce children with character building skills and to implement a holistic, character based on education approach.

 Also in the same year, Lonsum conducted Master of Trainee (MOT program) with IndoAgri Sehati for midwives, nurses and health cares working in clinics around its plantation estates, so that participants can improve their health services for their respective communities.

Outreaching the community

Through variety of programs, Lonsum wanted to positively contribute to the communities in which it operates.

Some programs conducted during 2014 include the following:

Clean water facility development and road rehabilitation in North Sumatra, South Sumatra and South Sulawesi.

Support for sport and youth activities through sponsorships for sport competitions and development of sport facilities for local communities.

Religious building construction and rehabilitation, as well as regular donations to religion schools and orphanages.

Support for religious events, such as support to MTQ (Qur’an reading competition) event held in Ogan Komering Ilir, Lahat, Muratara and Muba Regencies in South Sumatra.

 

Strengthening economic value

Lonsum engages in various partnership programs to promote and drive sustainable economic development of smallholders, small suppliers, farmers and other business partners.

Some programs implemented during 2014 include the following:

Training programs converting palm oil waste to quality products held in Rambong Sialang Training Center, North Sumatra, for communities living around plantation estates in North and South Sumatra.

Various training programs in sewing, flower arranging, farming and others, organized by Sentra Kriya Smart House (Sentra Kriya Rumah Pintar).

Food processing and garment business development program held in Dolok Estate Smart House in partnership with the Industry and Trade Agency and Batu Bara Regency Cooperative, North Sumatra.

Comparative study trip to a doughnut factory in North Sumatra for communities living around Pulo Rambong Estate, organized in partnership with Bogasari Baking Center.

Protecting the environment

As an agribusiness company, activities in environment preservation are essential part for the Company’s business sustainability.

 Further discussion on Lonsum’s environment protection activities is available in the Environmental Management part of the Corporate Social Responsibility.

 

Solidarity for humanity

In 2014, Lonsum and Indofood Group were in partnership with the Indonesian Army to conduct free medical checkup, cataract surgery, mass circumcision and health examination for pregnant mothers and children for some around 2,450 peoples living in Musi Banyuasin and Muratara Regencies, South Sumatra.

As in previous years, the Company also organized blood drive programs in various regions where Lonsum operates, the blood drive collected over 1,200 blood bags in 2014. For this achievement, Lonsum’s branch office in Samarinda was rewarded as the Largest Contributor and the Most Consistent Blood Donor by the Provincial Government of East Kalimantan.

Product Responsibility

Lonsum’s business sustainability is highly dependent on its ability to ensure the quality and safety of its products.

Lonsum’s estates and mills adopt well tested product safety standards within their entire production process.  This is to ensure the safe use of chemical substance in terms of its type, frequency of use and dose to provide customer protection. As a result, as of end 2014 the Company has not been subjected to any legal sanctions related to product safety and feasibility issues.

Lonsum’s agricultural products consist of intermediate goods that require further processing to be consumables. Given its product characteristics as intermediary goods, the Company does not particularly conduct any marketing communication activities. However, we present product information based on its quality, characteristics, brand and fair value.

As part of its commitment toward fair competition practices, Lonsum is against the dissemination of any negative information related to its competitors.