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PT Petrokimia Gresik - CSR Program of the Year

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Company: PT Petrokimia Gresik, Gresik, Indonesia
Company Description: PT Petrokimia Gresik (PG) is located in Gresik City, East Java Province-Indonesia and occupying land of 450 hectares. It was inaugurated by the President of Republic of Indonesia on July 10, 1972. As the biggest and most complete fertilizer and other chemical manufacturer in South East Asia, PG becomes an integral part of Republic of Indonesia Government program to secure national food security.
Nomination Category: Company / Organization Categories
Nomination Sub Category: Corporate Social Responsibility Program of the Year - in Asia, Australia and New Zealand

Nomination Title: Care for Education

Tell the story about this nominated CSR program as it has been carried out since 1 January 2016 (up to 650 words). Focus on specific accomplishments, and relate these accomplishments to past performance or industry norms.

Organizations are achieving commercial success in a way by honoring ethics, values and beliefs, respect people, communities and the natural environment associated in the business supply network. It needs clear understanding and consideration of all aspects and its impact of the business and relationship with stakeholders and community – both internally and externally. The integrity of an organization is very important; it helps in acquiring the loyalty of customers, recognition of professional and honest employees, local community support and environmental sustainability. A sustained organization has shown strong connection and responsibility with employees, customers, communities and environment. Based on Social Need Mapping, one of the many efforts by PT Petrokimia Gresik (PG) to maintain harmonious relationship with its surrounding community is by conducting development program in education sector for the community.

EDUCATIONAL VILLAGE BY THE COMMUNITY

Youth organizations (Karang Taruna) inside the community play an important role in the company-community relationship. On this matter, PG initiated a series of program to facilitate activities by youth organizations in eight urban communities surrounding the company. Those urban communities do not have many natural resources but abundance with human resources. Empowerment of human resources will bring many benefits to the urban communities. With full support from the Regent of Gresik, PG initiated an educational village program with activities including:

1. Socializing community study hour between 6 to 7 PM (West Indonesian Time Zone).
2. Free study coaching for orphans and children from poor families.
3. “English community” (communicating using English) every Friday.
4. Community Co-op establishment.
5. Workshop and entrepreneurial skill building for local youth.

By working together with youth organizations, Educational Village program were successfully implemented in the communities and become a benchmark for other communities.

SKILLS DEVELOPMENT: LOLAPIL

The program for community empowerment, Lolapil, has a purpose to produce highly skilled workforce with better opportunity to work in any industry including chemicals. The participants of Lolapil are recruited from high school fresh graduates of the surrounding community. For six months, participants will be quarantined to receive free education including theories and real workplace practices inside our plants. All facilities and accommodations for participants during the program are free of charge. Upon receiving their education, participants will be able to apply their knowledge in industries, recruited by PG or even become entrepreneurs. Lolapil was inaugurated by the Minister of Industry and since then has produces as much as 964 skillful graduates in the field of chemical analyst, electricity, instruments, welding, mechanical, heavy machinery, and automotive. Ultimately, the program is a form of PG support to competence based industrial training and education program encouraged by the Government to take on the more competitive free market era.

YOUNG FARMER TRAINING: PATRA

The number of people working in the agricultural sector in Indonesia is on the decline. Statistics Indonesia shows a reduction of almost two million agricultural workers over the last three years. World Food Programme estimate that within Indonesia, the fourth most populated country in the world, 19.4 million people are unable to meet their dietary requirements and approximately 37.2 percent of children under the age of five are stunted. In addition, the 2016 Global Hunger Index categorizes conditions in Indonesia as “Serious”.

Perversely, the United Nations Food and Agriculture Organization identify Indonesia as highly suitable for cultivation and crops. However, young people from rural areas are increasingly migrating to urban areas to gain employment and improve their lives. They are mainly school dropouts with little or no skill in farming, even though they are children of farmers. As a result, there is growing concern that there will be not enough people to cultivate the land to produce food crops, worsening the national food security situation.

To address these challenges, PG has committed to educate and train young farmers in rural areas by sponsoring a program called PATRA. The program is now operating throughout the country with a total of more than 2,000 new young farmers taking part.

In bullet-list form, briefly summarize up to ten (10) chief achievements since 1 January 2016 of the nominated CSR program (up to 150 words).

AWARDS

For its successful CSR program, PG received the following awards:

1. Social Business Innovation Award 2016 for Farmers Empowerment & Entrepreneur Program;
2. Surabaya Marketing Champion 2016;
3. Runner up of the Inspirational Public Relation Program in the Indonesia Public Relation Awards and Summit 2016;
4. Our PR Manager was elected as the Indonesian PR Personality 2016 in the Indonesian Media and PR Jamboree;
5. Education Care Awards from the Minister of Education and Culture for our high commitment in the Indonesian education sector.

Our company's image and reputation are positively increasing among the surrounding community and also throughout the nation. PG continues its support in education through activities including facilitating the annual PATRA National Jamboree and annual internship program in Japan. Through its CSR program, PG facilitates agribusiness proposals to help farmers of Indonesia make better living, produce more skillful and competitive workforce, and supporting national food security.