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Community Engagement

Significance

Download Community Engagement Policy (PDF)

Significance & Commitment

Banpu is committed to creating sustainable values and building trust by actively engaging with communities through proactive efforts. Guided by our Community Engagement Policy and Corporate Philanthropy Policy, the Company supports initiatives that enhance community well-being and societal sustainability, both within and beyond business operations.

Banpu commits to the following practices:

  • Promote community participation
  • Place community involvement in decision-making
  • Focus on common benefits and create shared value
  • Enhance a culture of transparency
  • Encourage employee involvement

Community Engagement Policy

Corporate Philanthropy Policy

Management Approach

Adhering to ESG principles, the Company balances business growth with sustainable value creation for all stakeholders. The Environmental and Social Impact Assessment (ESIA) has been a core part of the project development process since its inception and continues to be conducted whenever significant changes occur during implementation. The assessment results are shared with local communities to ensure early involvement from the outset. A community complaint management standard has been implemented, with regular reports to the SD and ESG Committees for oversight and accountability.

To strengthen engagement, the Community Consultative Committee (CCC), comprising representatives from the community, vulnerable groups, government, and the Company, has been established. In addition, each business unit has a dedicated community engagement function, tailored to local contexts to ensure meaningful development outcomes.

Community Engagement Work

The Company has developed a Standard Practice Manual on Community Engagement, which covers guidelines for improving the quality of life in local communities and mitigating social and community impacts. This manual provides community engagement officers with standardized operational procedures applicable across all areas of operation. Moreover, the guidelines are regularly reviewed and updated to ensure they effectively address changing circumstances and community needs.

Community engagement work

Application of Social Impact Assessment

The Company places great importance on the potential impacts of its operations on local communities. Therefore, a comprehensive social impact assessment is conducted across all business units before the commencement of any project. The insights gained from these assessments are used to design activities that align with community needs, primarily focusing on minimizing or avoiding adverse impacts. Furthermore, the Company ensures that the mitigation of impacts is compared to baseline conditions before the conclusion of operations at the end of the concession period. If there are changes to the project during its lifecycle, the Company conducts a new social impact assessment to ensure alignment with the modified operational activities.


Social impact assessment

 

Business Operational status No. of business unit
Total SIA conducted SIA communicated
Mining – Indonesia Operating 5 5 5
Project Development 3 3 NA
Mining – Australia Operating 5 5 5
Project Development 2 2 2
Renewable power – China Operating 7 NA NA
Project Development NA NA NA
Renewable power – Australia Operating 2 2 2
Project Development NA NA NA
Renewable power – Vietnam Operating 2 2 2
Project Development 3 NA NA

Note: NA = Not required to conduct SIA

SIA Communicated


Community Baseline Data Collection

The Company has determined to collect baseline community data during the initial stages of business operations and update it regularly, aiming to gain an understanding of the community’s geography, demography, occupation, resources, living condition, and development potential. These insights are subsequently presented to the Community Consultative Committee (CCC) for discussion and collaboration, enabling the development of tailored community engagement plans to address community needs while achieving objectives that foster mutual benefits.

Building Collaboration with Local Communities

The Company promotes contractor collaboration in community engagement work collaboration with contractors to support community engagement initiatives, as many of them have been carrying out community engagement implementations. This collaboration encompasses joint planning, budget allocation, resource management, and the exchange of knowledge, expertise, and information. By working together, the Company and its contractors enhance the efficiency of community engagement projects, deliver broader benefits to local communities, and minimize redundancies in program management.

Community Complaint Management 

The Company has devised a community complaint management system to enable systematic management of community complaints across the business. This approach covers indigenous people management and local community restoration under resettlement management in the event of inevitable project-related displacement. Also, the Company has specified that the outcomes of community complaint management be reported regularly to the ESG and the Sustainability Committee.

Community complaint management is a process that allows people in the community to express their concerns. Therefore, dealing with complaints is an essential in demonstrating responsibility to the communities and as part of the humanitarian context. In addition, it also enhances our Business Continuity Management (BCM) by preventing any possible risks that may occur.


Community complaint management manual

Noise Complaint Management in Australia

In 2020, Mandalong mine in Australia expanded its infrastructure by constructing the “Mandalong South Surface Site”, which included ventilation fans for future mining operations. Following community feedback regarding noise disturbance caused by these fans, Mandalong implemented a management standard that included communication with complainants, consultation with the community consultative committee, and formal reporting of the issue to state authorities.

Acting on stakeholder input, Mandalong decided to modify the fan structures to reduce noise. The modifications were completed in October 2023 and resulted in a significant decrease in noise emissions. Presently, there has been no further complaints regarding this issue.


Promotion of Community Engagement

Company places importance on community engagement at every stage of development, pre-development, development, and post-development, emphasizing the engagement of community members for community activity design, implementation, monitoring, and review, including evaluation, i.e. drawing up the community engagement plan that meets community needs and is consistent with the government’s development plan. The Company and the community jointly established a Community Consultative Committee (CCC), which consists of representatives from the local government, local communities, and the Company. The committee collaboratively works on project planning, monitoring progress, and solving problems for the greatest benefit to society.

The Company has cooperated with contractors on community engagement work as many of them have been carrying out community engagement implementations. The Company has worked with them from the planning process, budget allocation, and staff allocation to exchange knowledge, expertise, and information. The cooperation enhances efficiency and widely benefits local communities while reducing redundancies of its social engagement management.

 

Community Perception and Satisfaction Surveys

The Company conducts community perception surveys as a standard practice at all operational areas to assess community perception, acceptance levels, concerns, and suggestions. The insights gained from these surveys are used to improve operations, ensuring they better serve the community, meet its needs, and enhance overall satisfaction. In Indonesia, an annual community satisfaction survey on community engagement program is conducted, providing valuable feedback on satisfaction levels and enabling the Company to enhance the effectiveness of its community development initiatives.

Community perception survey

Quality Assurance Review

These reviews are carried out by employees who are not directly involved in community engagement activities to ensure the highest transparency and efficiency. The annual review process enables the Company to identify areas for improvement, enhancing the overall effectiveness of its community engagement initiatives.

Community Engagement Data Assurance

The Company has implemented a community engagement data assurance system to verify and ensure the accuracy of data, reflecting the genuine needs and concerns of the community. This system enables the Company to make well-informed decisions and operate more efficiently while ensuring transparency in disclosures and building trust among stakeholders. By preventing the dissemination of misleading information, this approach supports sustainable business operations and strengthens long-term relationships with the community.


Performance Overview

In 2024, the company held a total of 49 meetings with local communities, which included 5 meetings with the community consultative committee in Indonesia, 13 meetings with the mining group level subcommittee in Australia, 30 meetings with the chamber of commerce, homeowners associations, and civic organizations in the United States, and 1 meeting with community representatives in Mongolia. The company focuses on community participation at every stage of its operations and has incorporated feedback from these meetings into its strategic planning for sustainable collaboration with local communities.

In addition, the Company has applied the Community Complaint Management Standard across all business units to ensure systematic management of community complaints, encompassing both indigenous peoples and individuals affected by resettlement activities. In 2024, however, the Company received no significant community complaint issues from any business unit. The Company is committed to addressing community complaints with transparency and fairness. The outcomes of complaint management are regularly reported to the Sustainability Committee and the ESG Committee.

The Company conducted community satisfaction surveys across 16 community development programs in 5 Indonesian mines. The average satisfaction rating was 88.66% or at the “Very Satisfied” level. For other mines, the Company plans to carry out similar surveys in the coming year. The Company employs the Social Return on Investment (SROI) framework to evaluate the social impacts of community development initiatives and improve their effectiveness across all business units. In 2024, SROI assessments were conducted for 12 community development programs across 4 mine sites in Indonesia. Furthermore, the Company uses maturity measurement tools to assess community development initiatives, focusing on sustainability across six dimensions: change, inclusion, organization, cooperation, influence, and sustainability. In the same year, the Company applied these tools to community engagement projects in Indonesia, achieving comprehensive sustainability evaluations that covered 80% of the area.

The Company is preparing to implement a data assurance process for community engagement by aligning management standards across all business units. It is working closely with each unit to ensure readiness for this process. Preparations include reviewing and enhancing data collection, analysis, and reporting practices while maintaining transparent and ethical engagement with all stakeholders. Through these efforts, the Company aims to demonstrate its commitment to effective and responsible community engagement.

 

Targets and Progress

To ensure a comprehensive understanding of potential social impacts from our business operations, Social Impact Assessments (SIA) are conducted across all business units from the beginning of each project. This approach enables the Company to effectively adapt to changes and maintain strong stakeholder engagement. In 2024, the proportion of operations with SIA stood at 23% for operational sites and 60% for projects under development.

In the meantime, for the mining business in Indonesia, the Company continues to conduct annual community satisfaction surveys to evaluate the effectiveness of community engagement programs and monitor overall community satisfaction levels. In line with this commitment, the average community satisfaction survey was 89% in 2024

Empowering Communities Through Meaningful Engagement

At the heart of our community engagement initiatives lies a commitment to creating lasting, positive change across multiple dimensions of daily life. Our programs are designed to uplift communities through targeted actions that deliver tangible social benefits in six key areas: Economic, Education, Health, Environment, Social & Culture, and Infrastructure.

We are committed to empowering communities through thoughtfully designed programs tailored to specific target groups. Our initiatives aim to address social needs, foster local engagement, generate shared value, and promote mutual benefits. These actions contribute to sustainable and inclusive community development.

Social Benefits

Creating Shared Value (CSV)

Banpu believes that addressing social challenges is not just the right thing to do – it’s also a smart way to do business. That is why we embrace Creating Shared Value (CSV), a strategic approach that aligns our business objectives with the needs of the communities we work with. CSV is about developing sustainable solutions that deliver lasting benefits for society while driving innovation, operational efficiency, and long-term growth for our company.

How We Create Shared Value

  • We listen. We work closely with communities to understand their most needs and priorities.
  • We act. We develop programs that generate economic opportunities, improve livelihoods, and strengthen local ecosystems.
  • We grow. Together, we build scalable models that make a real impact—socially and commercially.

That is the power of shared value. Together, we are creating a cycle of growth – where everyone benefits.

 

Bokashi – Turning Waste into Wealth

Based on the results of a social mapping exercise in Kajang Rejo Village, cattle were identified as the most commonly raised livestock among residents. Consequently, cow manure is abundant in the area but had previously been underutilized, contributing to environmental issues due to poor waste management and unpleasant conditions. Recognizing this challenge as an opportunity, we initiated a sustainable solution to address both environmental and economic concerns.

In collaboration with the Community Consultative Committee, the Bokashi Organic Fertilizer Production initiative was launched in 2010. The project is managed by the Sumber Makmur Farmer Group, comprising 13 dedicated members who oversee daily operations. Through this initiative, agricultural waste is converted into organic fertilizer—generating income while fostering a cleaner, healthier environment.

As of 2024, the group has engaged approximately 30 local workers in its operations. To date, it has successfully produced 1,063 tons of organic fertilizer, generating a total gross income of USD 214,594. Looking ahead, the group plans to establish a community learning center to equip local communities with practical agricultural skills and knowledge, with a particular focus on developing an integrated farming system to promote long-term sustainability.

How It Works

  • Local communities collect cow manure and process it into high-quality organic fertilizer.
  • The fertilizer is then sold to our company, where it’s used in our revegetation and land restoration projects. (Nursery activity for 1 mil. trees and planting 750,000 trees in reclamation area)
  • By sourcing locally, we reduce long-distance transportation costs and carbon footprint -while purchasing in greater volume.

Shared Value in Action

  • Communities gain new income streams through fertilizer production.
  • Villages become cleaner, healthier, and more environmentally friendly.
  • Our business saves on logistics, supports a sustainable supply chain, and strengthens relationships with local stakeholders.

 

Social Impact Measurement

Social Return on Investment (SROI)

To measure the impact of community engagement efforts, the Company uses the Social Return on Investment (SROI) framework, evaluating 12 community development programs across 4 mine sites in Indonesia. In addition, a “Maturity Measurement” approach is applied to assess the sustainability of these programs across 6 dimensions: change, inclusion, organization, cooperation, influence, and sustainability. As of 2024, this comprehensive assessment has been implemented at 80% of the mines in Indonesia.

Example of SROI in Community Development Programs


Corporate framework on social impact measurement

 

Community Engagement Data Management System (CEMS)

CEMS is a powerful social impact data platform designed to streamline the way organizations handle community engagement data. With CEMS, users can easily store, retrieve, and manage valuable social impact information in a centralized database. The system ensures quick access to data, enabling effective communication and informed decision-making with stakeholders.

CEMS is actively being used across business units (BUs) that are implementing community engagement initiatives, supporting consistency, transparency, and measurable impact across the organization.

 

Proportion of CE Initiatives in Y2024 By Category As of May 20, 2025

2024 Banpu Social Impact at a Glance

Banpu Social Impact

2021

2022

2023

2024


Community Engagement Initiatives

2024 Highlight

BKV Education Support Income Generation Initiative Empowering Communities Through Computer Literacy Program Partnership School Project: Developing Equal and Inclusive Education

Indonesia

China

Australia

Mongolia

Vietnam

United States of America


Community Speaks: The Power of Impact

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Community Engagement Standard

Community Engagement Policy 
Community complaint management
Resettlement management
Stakeholder engagement manual
Community consultative committee
Indigenous peoples engagement
Community engagement work
Community perception survey
Corporate Framework on Social Impact Measurement
Social impact assessment

 

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