i ii Chapter I Introduction I.1 Background The mining industry in Indonesia is one of the main sectors that contributes greatly to the national economy. With abundant natural resources, Indonesia is known as the largest producer of several mining commodities such as coal, nickel and gold. This sector's contribution is reflected not only in generating state revenue but also in providing employment for millions of people, particularly in remote areas where mines operate. However, despite its significant contribution, the mining industry also faces major challenges related to work safety and social responsibility towards the surrounding community. Occupational safety in the mining industry is a critical concern due to the high risks in the mining environment. Mine workers are faced with various hazards, ranging from coal dust exposure, extreme temperature conditions, heavy equipment movement, to the high potential for mining accidents. To mitigate these risks, the Indonesian government has implemented several regulations focused on safeguarding worker safety, including the requirement for the use of Personal Protective Equipment (PPE). This PPE includes essential equipment such as helmets, safety shoes, masks, goggles, and special uniforms designed to protect workers from the inherent risks in mining. Uniforms play a dual role in the mining industry as they are part of the PPE and serve as a strategic element for creating a safer, more efficient work environment. These uniforms are made from materials resistant to harsh conditions, such as extreme heat, dust, and chemicals frequently found at mining sites. Reflective elements are typically incorporated to improve visibility in low-light conditions or at night, while ergonomic iii designs enhance comfort and protection, allowing workers to operate safely in demanding environments. By prioritizing safety through appropriate uniforms, companies not only protect their workforce but also foster a culture of safety and improve operational efficiency. Therefore, work uniforms that meet Occupational Safety and Health (OSH) standards are an important element that not only serves as a corporate identity but also as physical protection for workers from various potential hazards in the field. Beyond safety responsibilities, mining companies also face significant social responsibilities. PT Borneo Indobara (BIB), like other mining firms, is obligated to implement Corporate Social Responsibility (CSR) programs to support communities surrounding their operations. CSR programs typically focus on diverse areas, including economic development, education, healthcare, socio-culture, environmental conservation, and infrastructure development. This aligns with the mandate under the Ministry of Energy and Mineral Resources Regulation No. 1824 K/30/MEM/2018, which requires companies to play an active role in improving the welfare of local communities through community empowerment initiatives. Implementing CSR programs enables mining companies to build stronger relationships with local communities. These programs allow companies to positively impact local welfare while fostering closer ties with communities, thus promoting harmony in mining areas. Such efforts can reduce potential social conflicts and increase community trust, essential for securing a Social License to Operate (SLO), which is crucial for the sustainable operation of mining companies. iv PT Borneo Indobara gives an example of this commitment to social responsibility through its comprehensive CSR initiatives aimed at enhancing the welfare of surrounding communities. These initiatives extend beyond traditional philanthropy by focusing on sustainable empowerment programs. BIB offers skills training and supports the growth of micro, small, and medium enterprises (MSMEs), which drive local economic activity. The company also pays special attention to vital sectors such as agriculture, fisheries, and livestock, which constitute the primary sources of livelihood in the mining area, particularly in ring 1 communities. In addition to CSR, mining companies are increasingly adopting the Creating Shared Value (CSV) concept, a strategic approach designed to produce broader economic and social benefits. CSV emphasizes creating mutual value, benefiting both companies and communities. CSR and CSV activities intersect to build sustainability and shared value. While CSR centers on corporate social responsibility through programs aimed at improving community welfare, CSV focuses on generating sustainable economic value by aligning business objectives with social interests. By designing CSR initiatives based on CSV principles, companies like BIB can achieve a more significant impact, enhancing both their business performance and local welfare. Empowering local communities through entrepreneurship programs or skills development that supports the company's supply chain gives an example of this synergy, creating a mutually beneficial arrangement for both parties. To further enhance the impact of CSV, engaging women as key contributors in local economic development presents a powerful opportunity. Women plays an instrumental role in driving social and economic development, especially within communities surrounding mining areas. Although often not directly involved in mining operations, v women significantly contribute to sustaining family and community economies, acting as a key agent in stabilizing and sustain local resilience. In these regions, women's involvement in economic activities and community support aligns with the broader social responsibilities that mining companies, such as PT Borneo Indobara (BIB), are expected to uphold. By engaging women in empowerment and economic programs, BIB not only strengthens local economic growth but also fulfills regulatory mandates that highlight the importance of corporate participation in community welfare. Through targeted initiatives like skills development and support for small businesses, BIB harnesses the potential of women to create enduring positive impacts, fostering inclusive and sustainable development that benefits both the company and the broader community. I.2 Company Profile PT Borneo Indobara (PT BIB) is one of Indonesia's largest coal mining companies, operating in Tanah Bumbu Regency, South Kalimantan, with a concession area 24.100 hectares (PKP2B-Coal Mining Concession Work Agreement). Utilizing the open-pit mining method, PT BIB has a permit to operate until 2036. Since its inception, the company has consistently increased its annual production, achieving 42.14 million tons of coal in 2023 a substantial contribution to the national coal mining industry. This achievement highlights PT BIB’s commitment to enhancing production efficiency while reinforcing its strategic role in both the regional and national economies. vi Figure 1.1 Total Production of PT Borneo Indobara (per million tons) Impact of its mining activities, particularly on the communities within the ring 1 area, which are directly affected by its operations. This area encompasses five sub-districts and 22 villages, housing a total of 41.020 households. To better address these social impacts, PT BIB has divided the 22 villages into four clusters based on the resource potential identified in each village, as determined through the company’s social mapping initiative. This strategic clustering allows PT BIB to implement targeted community empowerment programs, optimizing social and economic benefits and minimizing adverse effects of mining activities, thereby contributing to the sustainability of surrounding communities. vii Figure 1.2 Villages Ring 1 area PT Borneo Indobara PT Borneo Indobara (PT BIB) is committed to implementing sustainable mining practices by prioritizing green leadership to cultivate inclusive, self-reliant, and resilient communities around its operational areas. This dedication is reflected in PT BIB’s comprehensive community empowerment programs, which are grounded in the Sustainable Development Goals (SDGs) and the Environmental, Social, and Governance (ESG) framework. These programs aim not only to enhance PT BIB's business performance but also to build communities that are resilient and economically independent. PT BIB’s approach aligns with multiple government regulations, including the Minister of Energy and Mineral Resources’ Decree No. 1824 K/30/MEM/2018, which mandates companies to actively contribute to the welfare of nearby communities, as well as the Government Regulation No.