CSR -- CSR program in Batam: 'Don't give them fish, but a hook and line!

Fadli ,  The Jakarta Post ,  Batam   |  Thu, 09/18/2008 10:31 AM  |  Supplement

Companies in Batam are already initiating corporate social responsibility (CSR) programs. Although at a snail's pace, the slow moving programs are generating hope and have had a number of positive results.

Batam Industrial Development Authority (BIDA) records indicate that the CSR programs of a number of major companies on Batam have been quite beneficial and each year the further development of the programs has been positive, BIDA's public relations head Dwi Djoko Wiwoho told The Jakarta Post last month.

He said the companies realized the benefits of such programs to the public, and that they had not been pressured by anyone or any government institution, such as BIDA, to implement them consistently.

"We cannot specify the exact number of the companies, but based on observation, CSR programs have been implemented by some major companies over the last several years. They have been doing it of their own accord without any pressure from anyone. It is all based on their realization regarding the limitations facing the government in such matters," said Djoko.

Djoko said that what Latrade Industrial Zone had done at Uncang Cape in Batam was exemplary and made it stand out from other developers in industrial zones in Batam.

The company has built various public facilities, including a primary school and a place of worship for neighboring residents. The facilities have been made available voluntarily without any request or pressure from the community. It is simply pure CSR.

"CSR programs can never be implemented positively through pressure, they should be voluntary activities. If we force companies here there would be negative effects, meaning investors would no longer find Batam attractive. That would harm our image. However, we take off our hats to those companies here that are concerned about the welfare of the people of Batam," said Djoko.

BIDA data shows that companies such as PT McDermott Batam, Citra Mas Group, Batamindo Investment Cakrawala (BIC), Kawasan Industri Latrade (Latrade Industrial Zone) and Adya Tirta Batam Water Company (ATB) have systematically implemented CSR programs.

Community development programs based on the positive intentions of a company, said Reggy Djakarya, deputy chairman of Citra Mas Group Foundation, do not always receive a positive response from the public. Hence, the company has to struggle on its own to carry out the programs.

Citra Mas Group is the holding company of several subsidiaries operating in Kabil and Nongsa Industrial Zones in Batam. One of them is PT Citra Tubindo Tbk, a pipe manufacturer that supplies Nongsa Point Marina and Turi Beach Resort. The company was established in Batam 25 years ago.

"We have been implementing our CSR programs for about eight years. Every year the budget has increased. What makes us proud is that our company does not exploit the natural resources here, but instead makes a huge contribution," said Reggy.

He further said that in 2000 the budget allocated was Rp 700 million (about US$74,000), which kept going up and by 2007 it was Rp 1.5 billion, while this year it is Rp 2 billion. The programs are divided into four categories: education, health, sports and social affairs.

Special attention is given to 2,078 poor families in Nongsa district, where the company is located.

"We also concentrate on educational and training programs, because giving away cash is not educative, while providing them with funds for their small businesses has turned out to be unfruitful," said Reggy.

Since 2001, the company has also been providing weekly English courses for 92 primary and high school students in Nongsa and Ngenang Island. The teachers and other facilities are provided by Citra Mas Foundation.

Aside from providing welding training, the company also provides funds to support one of the popular sports in the area: sailing. As a result, the area's athletes were able to grab gold medals in the country's largest sporting event, the National Games (PON).

"Providing them with education and training is like giving them a hook and line, while giving away cash for business is nothing more than giving them fish. In fact, some time ago we gave the area's fishermen money for their business, but it did not work because they did not realize that the money was to be used to develop themselves further," said Reggy.

Citra Mas has thus decided not to give cash in helping develop Nongsa district, which has a population of 42,000. He added that such a method required much attention to detail, while at the same time the results were often not optimal.

"What we want to do is help the community in a way that brings positive results," said Reggy.

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