The Company’s social responsibility towards social and community development is carried out through the BUMN Minister’s partnership program Number PER-02/MBU/07/2017 concerning the second amendment to SOE ministerial regulation number PER-09/ MBU/07/2015 concerning BUMN Partnership and Community Development Program. The Partnership Program is sourced from the allowance for profits allocated until 2017, while the Community Development Program funds are recorded as the Company’s operational costs. Company PKBL’s vision is “to be a contributor in improving the economic activities of small businesses and community social empowerment”. To realize this vision, the Company launched a mission “to carry out activities to improve the ability of small businesses to become resilient and independent and to empower the social conditions of the community through the use of a portion of the Company’s funds”

Allocation of Partnership and Community Development Program funds in 2018, based on the regulation of the Minister of BUMN No. PER-09/ MBU/07/2015 dated July 3, 2015 and SOE Minister Regulation No. PER-03/MBU/12/2016 dated December 16, 2016 concerning the Partnership Program and Community Development Program stated that the funding sources of the Partnership program and the BL Program were sourced from the provision of net profits of SOEs and/or budgets that were calculated as costs to SOEs. Based on the results of the decisions of the Board of Commissioners and the Board of Directors regarding the Approval of the Corporate Work Plan and Budget (RKAP) and Ratification of the Partnership and Community Development Program (PKBL) Work and Budget Plan (RKA) of PT Semen Baturaja (Persero) Tbk in 2018 No. 181.E/DK/01/2018 On January 14, 2018 it was decided that the allocation for the Partnership Program was 0% or Rp0 and the allocation for the Community Development Program was 4% or Rp7,275,360,000.

The Partnership Program of the Company provides loans to the small and micro medium business sector (MSME) and part of the grant funds to foster the assisted partners.

The Company’s Community Development Program in the form of assistance aimed at the communities surrounding the Company’s operational area.

Corporate Social Responsibility (CSR) also Partnership and Community Development Program (PKBL) represent the Company’s responsibility to integrate the Company’s business to balanced with the interests of society and the environment, so that it is sustainable.

Principles of CSR which become the background of CSR and PKBL implementation of the Company, including:

• Accountability
• Transparency
• Ethical Behavior
• Respect for Stakeholder Interests
• Compliance with the Law
• Respect for the Norms of International Behavior
• Human Rights Enforcement

CSR Concept of PT Semen Baturaja (Persero) Tbk is Tripple Bottom Line or “3P” which are “Profit, People, Planet”. In addition to pursuit the profit, the Company is involved in efforts to pay attention and involved in the fulfillment of people’s welfare and contributes actively in preserving the environment (planet).