Commitments and Policies
For Phapros, CSR is an ongoing commitment to act ethically in implementing Corporate Social Responsibility programs to jointly build a better quality of life. Therefore, the Company has a long-term commitment to implement CSR as part of the Company's responsibility to the community and the environment.
Phapros' commitment is realized by consistently providing a budget every year and implementing CSR programs systematically and sustainably. With such implementation, the benefits for the community and the environment will be more pronounced, which in turn will present a positive image and strengthen community support for the Company's existence, so that it will make Phapros more focused on improving performance and realizing sustainable business.
Analysis of Issues, Impact, and Preparation of Social Community Development Programs
To get optimal results, as well as so that the CSR program implemented provides maximum benefits, before determining a particular program, Phapros maps the potential of the community that is the target of program implementation or can also be through community proposals. Mapping can be done alone or in collaboration with third parties, to explore and identify the potential and needs of the community.
Mapping is increasingly important because in determining the CSR program, Phapros is often faced with various social and environmental problems related to the community around the location of operations. In this case, mapping becomes an alternative as well as a mitigation of the problem. Through proper mapping, the Company can realize its commitment to providing the best positive benefits for the communities around the location of operations, both direct economic benefits and social benefits. On the other hand, Phapros also mitigates the potential negative impacts of operational activities, both from an economic, social, and environmental perspective. The following is the focus and attention of Phapros on aspects of economic and social development.
To maintain the sustainability of its business so that it grows sustainably along with increasing the welfare of the community as a stakeholder, Phapros pays attention to and maintains environmental sustainability around the location of business units. The spirit of community empowerment is mainly given to micro, small, and medium enterprises (MSMEs), as well as people belonging to the underprivileged category which has been going on since the beginning of its establishment and continues to go hand in hand with the Company's growth. This is the Company's commitment to providing more added value to the community. Therefore, the TJSL program developed by Phapros has its characteristics by the vision it carries by empowering the community to have the capacity and innovate during change.
Investment in Social Community Development
The focus of Phapros social community development is grouped into 3 (three) program groups, namely CSR Program, Regional Development Program and Endowment, and Donations.
CSR SOEs Program
Phapros contributes to the surrounding community and the environment around the Company's work area through the CSR program. The funding sources of the CSR Program come from:
a. activity budget calculated as costs to SOEs in years current budget;
b. partial allowance of net profit in the previous fiscal year; and/or
c. other legitimate sources by the provisions of the legislation.
By the latest regulations, the implementation of the CSR SOEs Program can be carried out in the form of:
a. Financing and development of micro and small enterprises, and/or
b. Assistance and/or other activities.
To implement the CSR Program for financing and fostering micro and small businesses, the Company can specifically establish the MSE Funding Program, which is a program to improve the ability of micro and small businesses to become resilient and independent.
Regional Development Program
The purpose of implementing the Regional Development Program is almost the same as the Assistance Program and/or Other Activities, only more specifically for the community around the Company to improve social conditions and infrastructure of people's lives, through various assistance activities and human resource development using the Company's costs.
The Regional Development Program relies on community empowerment to support the creation of an independent and empowered community, both in terms of economy, society, environment, as well as well-being. The target of the program implementation is to improve the level of community independence sustainably so that later the community will be able to play a greater role in improving the standard of living of all surrounding areas independently.
Through the realization of various activities in the Regional Development Program, Phapros shows its commitment to playing an active role in supporting the achievement of various formulations of Sustainable Development Goals (SDGs), especially in improving the social and economic living standards of the surrounding community.
Endowment & Donations
Endowment and donations are carried out under certain conditions, where there is activity around the Company's operational location that requires support, but these activities are not included in the plan to provide support in the Assistance Program and/or Other Activities or the Regional Development Program that has been compiled.
MSE Funding Program
Phapros realizes the MSE Funding Program to increase the ability of small and micro businesses to continue to grow, and become resilient and independent through the utilization of funds from SOEs in the form of revolving funds/providing business capital loans and production facilities. MSE Funding Program funds are distributed in the form of:
a. Provision of working capital in the form of sharia loans and/or financing with the number of sharia loans and/or financing for each micro and small business of a maximum of IDR250,000,000.00 (two hundred fifty million rupiahs).
b. Additional loans in the form of loans and/or sharia financing to finance short-term needs of a maximum of 1 year to fulfill orders from micro and small business partners with the most amount of IDR100.000.000,00 (one hundred million rupiahs).
During the pandemic conditions in 2022, Phapros continues to distribute working capital loans in the trade, services, and industry, specifically for agriculture, animal husbandry, and fisheries with a cluster system capital distribution pattern. The realization of distribution working capital loans in 2022 amounted to IDR3,370,000,000 billion with a percentage of 87.9% of the 2022 RKAP. The realization of the distribution is clear proof of Phapros' concern for micro, small, and medium enterprises (MSMEs) and farmer groups.
Assistance Programs and/or Other Activities
Phapros carries out various Assistance Programs and/or Other Activities involving the community. In addition to improving community welfare, this program is held to establish a harmonious relationship between the Company and stakeholders. Throughout 2022, Phapros distributed funds for Assistance Programs and/or Other Activities amounting to IDR115,447,591 billion with the following details.
Based on the programs that have been held during the reporting year above, there are various benefits felt by the community, by the objectives and focus of each program. In this case, the Company hopes that the implementation of Assistance programs and/or Other Activities can improve the welfare of the community and become a means of building harmonious relationships and mutual help so that the community can grow and develop well with the company. The implementation of these programs is also expected to be able to encourage the creation of community welfare and improve the quality of education, health quality, and independence of the community around the company.