As part of the Company's overall corporate social responsibility effort, we have promoted activities at local and national levels to promote health and safety, education and conservation, by engaging the communities we operate in. These activities help empower the local communities with sustainable economic enterprise from farming to reforestation. By acting with sensitivity to these communities and the environment they inhabit, Indika Energy also acts to promote the conservation of their traditional lifestyles and culture, including preserving their art, theatre and way of life for posterity. Among many of Indonesia's rich traditional arts is the Wayang Orang Bharata that has been marginalised as a result of rapid modernisation. Active conservation effort by Indika Energy goes beyond providing financial support, as our own people are participants in these activities, even being in full-scale productions on stage

Indika Energy's corporate social responsibility (CSR) efforts begin with a commitment to be a model employer, providing job security and sound career opportunities for professional development, and through community engagement activities to promote health, education, and community development while promoting the preservation of cultural heritage of the people. As a model trans-national Company, Indika Energy is also a modern enterprise grown from very traditional roots and ancient cultures. While retaining the brightest aspects of being an internationally-minded business, the Company understands the significant role it can play in giving back to the local communities where it operates among.

The CSR community engagement umbrella takes shape under the aegis of health, education, community assistance and development activities in 2009. There are plans to enhance the scope of support to include professional and business association programme and government relations effort in the future.

Health

Support in the running of a women's and children's clinic (Posyandu) in Biu village by Kideco and in burns treatment at Balikpapan continued to make a difference in the health and medical needs of the local rural communities, including in infection care for prosthetic users. Kideco also sponsored cataract surgery and pteregium care at a community health centre (Pusat Kesehatan Masyarakat/Puskemas) in Batu Kajang village. Blood donation drives at the local clinics were part of the Company's overall health education effort. Blood donation drives were also organised every quarter at Tripatra's offices in Jakarta and is keenly supported by employees as well as other workers in the area, as a result of the awareness the event has generated. At Gunung Bayan, Petrosea sponsored public health education programmes aimed at promoting healthy lifestyles and the eradication of diseases such as dengue fever, malaria and the cikungunya virus, from among the local communities.

Among the many common needs these rural communities require is access to potable water. Kideco has been committed to many projects in support funding of water treatment and supply in Nuser-Biu village, Puskesmas Batu Kajang, Tanjung Raya, Songka village, several mosques at Keluang Lolo village, Pondong village, muser-Biu village and funding a clean water ship for Muara Telake village. Access to clean water is not only a basic human need, but has direct health vector benefits while easing the domestic life of the local villagers. In response to the need for clean water at the Gunung Bayan area, Petrosea facilities now aid the residents with supply, immediately improving their quality of health and living standards.

Education

In July 2009, Indika Energy established the “Paramadina Indika Energy Fellowship” in cooperation with Paramadina University in Jakarta, providing scholarship for college tuition, living cost and books for a four-year period. Ten college students were sponsored as beneficiaries of these scholarships. Each student received Rp. 110 million during the four-year period of study at Paramadina University until they graduate. The response from the student and University has encouraged Indika Energy to continue with this Fellowship programme in the years ahead.

At Bekasi, West Java, the Company sponsored the school education programme on waste disposal and supported two schools with grants of Rp. 60 million for a year in equipment for the school and for needy students.

Kideco supports education in both building development as well as in funding and accommodation assistance. At Muara Koman, East Kalimantan, Kideco provided support for the development of the elementary school, as well as for the Handayani kindergarten school building development in Kuaro. Renovations to the Kenanga Kindergarten in Balikpapan was spearheaded by Petrosea and included the provision of computers and learning materials, and aid for the teachers by developing a Health Computer & Internet Laboratory with support from ICT Watch, a non-profit organisation that reconditioned the donated computers for use.

Computers and laptops were sponsored by Kideco for educational use in the Kuaro subdistrict as well as for Pasir Belengkong subdistrict, and funded the 2009 Asean participants travel programme to Japan for the 2nd Vocational High School Tanah Grogot. Other educational funding included the thesis work for University of Gajah Mada students, seminar sponsorship for University of Mulawarman Samarinda students, procurement of musical instruments for OSIS 1st Junior High School Batu Sopang, procurement of school textbooks and accommodation service funding for studies undertaken by the Indonesian Cancer Foundation at Jakarta-Bogor-Samarinda. Numerous other educational funding was disbursed for students in East Kalimantan, University of Lambung Mangkurat – Banjarmasin, the Kertanegara Kuaro High School, and study tours for the Muhammadiyah High School Tanah Grogot and 2nd Junior High School Tanah Grogot. Kideco also provided honorariums to assist the teachers and principals as well as scholarships for elementary and junior high students, as part of the Company's overall effort to invest in the future of Indonesia.

Community and Social Assistance

The Company also distributed 300 Ramadhan food packages to needy students and families at Bekasi, West Java. More Ramadhan food packages and another Rp. 60 million grant were also awarded to another school for latchkey children and the local needy families. Aid packages consisting of toiletry essentials, prayer paraphernalia and basic food supplies were distributed to 60 orphaned children through an orphanage foundation at Jatiasih in Bekasi, West Java. Similar aid packages were also distributed to other orphanage foundations in Kampung Pulomurub, Bekasi, where children in junior to senior high school levels are cared for.

Four thousand Ramadhan packages were also prepared and distributed by volunteers to the needy families located in the areas near the corporate office in downtown Jakarta. At various village communities in Jakarta, Bekasi, Tangerang, Citayeum – Depok, and Ciganjur, Indika Energy sponsored the festival ritual of religious sacrifice to commemorate Idul Adha.

Kideco also supported the local community's soccer, volleyball and Dragon Boat racing events, aided the Safari Ramadhan event at Batu Sopang, provided hundreds of religious books for the Ar Rahman Kindergarten - Batu Kajang village and sponsorship support at the Islamic boarding school in Muaro Kuaro village.

Relief effort in response to disaster-affected communities has to be spontaneous yet organised. Help for the earthquake victims in Tasik, Cianjur and Padang coordinated by the Company was strikingly quick, as was their response to the Situ Gintung's dam disaster.

Community Development Efforts

Community engagement as a dialogue between our business lines and the grassroots leaders have been successfully practiced by the Company's CSR Coordinators to better gauge their needs and propose recommendations to the Company for action.

Infrastructure development in these rural communities such as the Samurangau river bridge, road expansion, hardening and parking lots at Pasar Baru, and development projects for multi-purpose buildings at Batu Kajang, Lolo, and Air Mati villages were undertaken by Kideco. Other building activities included repairs to roads and bridges at Batu Butok village, and renovations of several mosques. Tree-planting activities at the Forum Anak Bangsa in East Kalimantan may have been a social event, but these were among the activities which had an environmental as well as educational thrust. Kideco also procured 20 fishing boats for the Muara Adang village to build up a sustainable local fishing farm, boat engines for six neighbourboods at Pasir Mayang village, and provided 5 KVA diesel power generators to help villages in need. Other sustainable agricultural assistance provided included four paddy threshing units and fertilizers and herbicides for Lolo village.

To assist the development of these communities Petrosea operates in, the use of the local workforce is a significant effort in these locations. Among the 350 employees in Petrosea Offshore Supply Base (POSB), 60 were recruited and trained from the local community. At Santan Batubara, Petrosea provided entrepreneurial training through cooperatives and organised sewing classes for the local mothers to use their sewing skills and for uniform orders. This sustainable cottage industry with village-owned enterprise began with just three sewing machines and hemming equipment with Petrosea's support. This sort of effort directly also contributes to the overall national economic development of Indonesia, which has emerged from the recent global turmoil more robust and engaged internationally.

Preserving an Ancient Cultural Heritage

As part of the on-going effort to promote the indigenous cultural heritage through performance of the traditional arts, a two-day heritage puppet show in the style of the renowned Indonesian shadow puppets was organised in November 2009, entitled "Kalimasada Murca" in conjunction with the Mitra Bharata Foundation.

As Indika Energy builds its reputation as a world-class integrated energy Company with strong synergies for growth, fuelled by strong financial structures and resources, it will continue to extend its commitment to the communities the Company serves and operates in by its stewardship of local interests while capitalising on the global opportunities at large.