Community Relations
Community Relations
Significance & Commitment
Banpu is committed to responsible and inclusive community development across all areas of operations. Guided by the Community Engagement Policy, we engage transparently with local communities, Indigenous Peoples, vulnerable groups, government agencies, and other key stakeholders to enhance quality of life and strengthen long-term self-reliance.
Our participatory approach respects community rights, ensures meaningful involvement in decision-making, and provides accessible and effective grievance mechanisms. We create shared value through local employment opportunities, local procurement support, workforce development, and quality-of-life improvement initiatives. All business units apply consistent standards aligned with local regulations and international frameworks, including the UN Sustainable Development Goals (SDGs). We also assess key initiatives using the Social Return on Investment (SROI) approach to ensure meaningful and sustainable outcomes for local communities.
Management Approach
The Company has established the Community Engagement Policy and related standard practices to ensure consistent compliance and implementation across all business units. We develop strategies and set targets for community engagement activities in alignment with local regulations and international frameworks, including the UN SDGs. In collaboration with local communities, engagement activities are carried out across 6 key areas:
1. Economic development
2. Education development
3. Health and sanitation development
4. Environmental conservation
5. Social and cultural promotion
6. Basic infrastructure development
The Company prioritizes community engagement throughout every stage of operation – pre-operation, operation, and post-operation, emphasizing the involvement of community members in the design, implementation, monitoring, review, and evaluation of initiatives. For example, we develop community engagement plans that align with community needs and complement government development initiatives.
To strengthen local participation, the Company and local communities have jointly established Community Consultative Committees (CCCs), comprising representatives from local communities, local government, and the Company. These committees collaborate on project planning, progress monitoring, and issue resolution for the greatest benefit to society.
Certain operations may have significant actual or potential impacts on local communities due to their scale or proximity. The Company identifies these impacts through baseline studies, Environmental and Social Impact Assessments (ESIAs), and ongoing monitoring. For operations with significant impacts, Banpu implements specific mitigation plans addressing issues such as land use, resettlement, livelihoods, cultural heritage, access to resources, and community safety. These measures are developed in consultation with affected communities and are monitored through CCC meetings and independent assessments. In the event of significant changes during project implementation, the ESIA will be reassessed and updated accordingly to ensure that mitigation measures remain appropriate and responsive to evolving conditions.
All community programs are regularly monitored and evaluated through CCC review meetings and community perception surveys to assess community perception, acceptance levels, concerns, and recommendations. The insights from these surveys are used to improve operations, ensuring they better serve community needs and enhance overall satisfaction. In Indonesia, an annual community satisfaction survey is conducted specifically on community engagement programs. The results provide valuable feedback and support the continuous improvement of community development initiatives. To maximize effectiveness, the Company applies the SROI framework to evaluate the social impacts of community development activities and enhance operational efficiency.
Social Baseline Study
The Company collects baseline community data during the initial stages of operations and updates it regularly to understand community geography, demographics, occupations, resources, living conditions, and development potential. These insights are subsequently presented to the CCC, which includes representatives from Indigenous Peoples and vulnerable groups to ensure comprehensive perspectives and promote inclusivity and equity. Through dialogue and collaboration, the Company develops tailored community engagement plans that reflect community needs and foster mutual benefits.
Partnerships with Contractors on Community Capacity Building
The Company collaborates with local contractors to support community engagement initiatives, many of which are actively implementing community development activities. This collaboration encompasses joint planning, budget allocation, resource management, and knowledge sharing. Through these partnerships, the Company and contractors enhance the efficiency of community engagement projects, expand benefits to local communities, and reduce redundancies in program management.
Community Grievance Management
The Company has established a Community Complaint Management Standard to ensure systematic and consistent handling of community complaints across all business units. This framework includes Indigenous Peoples management and the community restoration processes aligned with the resettlement management framework. Moreover, complaint management outcomes are reported regularly to the management-level Sustainability Committee and the Board-level ESG Committee to ensure governance oversight and accountability.
Year in Review
In 2024, the Company strengthened community engagement through 5 CCC meetings in Indonesia and 13 mining group-level subcommittee meetings in Australia, with no significant complaints recorded. To enhance community projects, satisfaction surveys across 5 mine sites in Indonesia recorded an 89% “Very Satisfied” rating. Additionally, the Social Return on Investment (SROI) framework was applied to 100% of community engagement projects in Indonesia to assess and enhance their social impact across business units.
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