Community Development


Greater social pressure can result in better social performance and that’s why Bayan takes the initiative to ensure Community Development (CD) program as one of its missions in which the operation has to be smoothly running hand-in-hand with the community surrounding sites.


In the other words, Bayan steps up its responsible behavior in response to the development of community and provide better working conditions around the sites.


Starting in early 2009 Bayan has officially announce the Four Basic Pillars by adopting an international standard of community and environmental practices, including recent initiatives to ensure that corporate CD strategy and performance are successfully managed and give higher returns for the community.


In general, poverty played a major role in determining corporate CD strategy and the way how the company is able to sort it out by providing a sustainable and systematic program, because poverty is not just about an economic challenge. Extreme poverty is a condition where families cannot make meaningful choices to determine their own future.


For mining companies like Bayan, CD is the manifestation of a move towards greater sustainability in the industry i.e. the practical implementation of the goals of sustainability under the three dimensions of sustainable development (Development of Manpower, providing infrastructures and sustainable economic growth) plus one Social Activities Program to support their day to day social life to ensure the future development and long-term livelihood of the communities, and minimizing the environmental impact of natural resource operation, to allow successive use and social cohesion – reducing the social and cultural disruption to communities, maintenance of stakeholder dialogue and transparency in implementing the CD programs.


Strong focus for Bayan CD initiatives in term of social environment is ‘the community’. Bayan as a miner has a huge impact on local communities; positive effects include the creation of new communities and wealth, income from operation activities, technology transfer, skilled employment and training for local populations and improvements in infrastructure such as roads, schools and health activities.


Sustainable development requires net and equitable benefits, and the building of social capacity for the affected communities that continue throughout and beyond the closure of the mine and a company’s CD program should address these issues.


The implementation of CD programs is to embrace, and most importantly, to suit the needs of its target in community and goes hand in hand in making a positive social impact, such as:

  • Skill Development of local community and providing a Full Scholarship program for local students to further higher education. 
  • Infrastructure improvements – for example, building access roads, community buildings and schools, clean water projects, electricity and the other similar program.
  • Community Health Initiatives - offering health services to employees and their families, and building and equipping hospitals and health centres for communities.
  • Supporting small local businesses for local suppliers.
  • Sustainable livelihood projects – the purpose of these is to reduce the communities’ economic dependence on the mine, and develop alternative and sustainable employment opportunities for stakeholder communities.
  • Micro-enterprises to support local community business, create jobs, and help economies to flourish.

Due to these, Bayan has spent total of IDR 81 billion in last five years (2009 – 2014) under its four pillars.