PTPM at a glance

Social Development Program

PTPM at a glance

PTPM at a glance

The year 2013 was an important period for PT Vale in running its community development program. Listening to advices and criticisms from the society and other parties, the company has abandoned the project approach, stand-alone and short-term model of program.

Community development program which PT Vale is developing now is adjusted to the regional development plan of East Luwu government and designed as a long-term program with a five-yearly roadmap. The local government, the company and the beneficiaries will walk hand in hand. Therefore no overlapping program and financing, unnecessary cost and works can be avoided. All is accommodated in one program called Integrated Community Development Program or PTPM.

PTPM was officially launched in January 2014. The event was marked with the signing of a memorandum of understanding by East Luwu Regent Andi Hatta Marakarma, East Luwu Legislative Council speaker Sukman Sadike and PT Vale President Director Nico Kanter. Also present in the ceremony was PT Vale President Commissioner Ricardo Carvalho. For a starter, PTPM was arranged for five years from 2013 to 2017.

PTPM has gone through a series of thorough studies. They included a stakeholder mapping study by the company in line with the AA 1000 standard, an educational study by the Makassar State University in 2012, an asset and marketing chain study by the company and A+CSR consulting company in 2013 and a conformity study of the company’s community development program and Regional Ordinance No.2/2005 on East Luwu Regency Short-term Development Planning 2005-2025 and Medium-term Development Planning 2011-2015.


The Principles

The following principles serve as the guideline and terms of reference in implementing PTPM.

  • Participation of stakeholders
    PTPM is one of PT Vale contribution mechanisms, which is implemented by encouraging participation of local people, regional government and related institutions. PTPM gives an opportunity to the people, including those who have yet to receive basic services, to take part in the program by sharing their ideas, energy, money or assets for the sake of a better future.
  • Accountability
    Each stage of PTPM activity must be appropriately managed and held accountable to the people and other parties who are connected morally, technically or administratively and in line with existing regulations and rules or conventions agreed upon by the society, local government and PT Vale.
  • Transparency
    The public has access to all information and decision making related to PTPM. Therefore all activities have to be conducted in a transparent manner and known to the public at large. The public and other stakeholders who reside in the villages or districts have to know, understand and participate in the PTPM implementation mechanism.
  • Self-reliance
    The local community is given a wide room to determine its choices of activity in the fields of healthcare and economy, in accordance with the problems, capacity and development needs. The principle of self-reliance also means the local people hold the right and authority to manage themselves in an independent and responsible way and contribute to the success of the program.
  • Transparency
    The public has access to all information and decision making related to PTPM. Therefore all activities have to be conducted in a transparent manner and known to the public at large. The public and other stakeholders who reside in the villages or districts have to know, understand and participate in the PTPM implementation mechanism.
  • Partnership
    The local people and government and PT Vale share the responsibility and work together according to their responsibilities and roles. The people has a wide responsibility and authority to decide and manage activities that are funded by the company and to participate through the mechanism agreed upon and the prevailing rules.
  • Sustainability
    Every step of PTPM—starting from planning, implementation, control, utilization and maintenance of activities always takes into consideration sustainability and of activities and environmental conservation. In this case the local government and the company serve as technical assistance provider and motivator of the society.

Beneficiaries of PT Vale’s PTPM are the poor and vulnerable groups with characteristics that are determined based on studies and prevailing regulations, particularly those who are affected by PT Vale operations. They are:

  • Poor people
    Income or consumption of a family can be adopted as an indicator to determine whether a family falls in the group of the poor or not. But the commonly used indicator comes from BKKBN (National Family Planning Coordinating Board), which divides families into five groups. Poor families fall in the categories of less prosperous and prosperous I.
  • Women, mothers and children
    Women, mothers and children can be classified into vulnerable group. Oftentimes women find it difficult to access economic, education and health services. Sometimes they even endure domestic violence. Such risks will increase for women who come from poor families.

    In the health sector, maternal mortality and child mortality during delivery remain the primary causes of the high death rate. This happens because of the low awareness on the part of mothers of routine medical checks during their pregnancy. Other causes include the lack of health facilities, or if any they are located too far away, and shortage in the number of medical workers.
  • Youth and young people
    Young people and youths are considered vulnerable because they can easily engage in crimes or drug abuse if they are not absorbed by the labor market. They are citizens aged 10-29 years old. PT Vale encourages involvement of this group in its PTPM activities given their potential as the engine that propels community development. If they are not appropriately involved they can turn into a new source of social problem.
  • Elderly Group
    PT Vale, apart from providing basic needs, aims to empower the group of elders through support in the forms of:
    • First, push for their social role in the society just to remove the stigma that senior citizens are the social burden the population has to bear.
    • Second, push for and facilitate the group of productive elders to realize economic self-reliance.
    • Three, give the elders enough space and encourage them to transfer their experience and knowledge to the public.
    • Fourth, provide easy access to public services to residents.

All the efforts are conducted in cooperation with the central government, regional government, private sector, private institutions, NGOs and the public at large.

PTPM tries to develop partnership with people, local governments, central government and the company just to build social partnership in line with the government’s policy. Therefore the company supports formation of a district-level Partnership Cooperation Forum (K3).

The government therefore pushes for creation of the regency level consultation forum in order to formulate policies that support harmonization, balancing and optimal use of activities to empower communities who live in the areas affected by the company’s operations.

K3 provides guidance, direction, input and operational policy framework of PTPM, and serves as a consultation forum to discuss problems, needs and activity plans.

As part of an organizational structure, K3 is a coordination team set up by the regent and comprises personnel from the Regional Development Planning Agency (Bappeda), Community Development and Rural Governance Board (BPMPD), health agency, cooperatives, industry and trade agency, agriculture agency, maritime resources agency, forestry agency and other institutions that are deemed necessary. The team answers to the regent, while the deputy regent leads the steering committee, Bappeda chief serves as the team coordinator and BPMPD head as secretary of the team.

The Regency Coordination Team is mandated to develop community involvement, upgrade administration of activities and coordinate related institutions so as to ensure effectiveness of PTPM. The team also has to make sure harmony between development programs designed by the local government and PTPM in the empowerment areas. This will avoid overlapping programs and roles.

Find out more