Learn from KORINDO
Copying a success is the fastest way to develop underdeveloped regions. If you want to learn how the private sector should develop the underdeveloped regions, follow the steps of KORINDO in running a business.
KORINDO is a company specialized in natural resources, with stocks entirely owned by people in Indonesia. Since founded in 1969, KORINDO’s business line continues to grow rapidly.
The products manufactured are also varied, from plywood (1979), paper (1984), timber (1993), and palm oil (1995). Export proceeds keep flowing into this country, considering that KORINDO’s products have penetrated the American, European, and Asian markets.
Exploration of natural resources in Indonesia is conducted by KORINDO in several underdeveloped regions, such as Buru and Halmahera in Maluku, as well as Merauke and Boven Digoel in Papua. In each region explored, KORINDO is committed to grow together with the local communities.
That commitment can be seen from KORINDO’s vision and its three missions. For example, let us look at its second mission which says, “To build awareness, knowledge, and capacity, as well as active participation from the local communities in improving their welfare”. It is clear, that mission is a noble value that must be followed by other companies to turn the business wheels in underdeveloped regions.
Before we get into KORINDO’s accomplishments in developing the border regions, it would be better for us to get acquainted with the company, which owns more than 30 subsidiaries. To get more comfortable with the company, let me show you KORINDO’s brief profile with the following video.
In order to bring a change for a better Indonesia, KORINDO has a program of sustainable community development called Corporate Social Responsibility (CSR). This is not only a regular CSR program, because every element of living society is mixed in it and became its pillars, namely education, health, economy, environment, and infrastructure.
KORINDO realizes that the main key in developing underdeveloped regions lies in the field of education. This is the reason why KORINDO is doing a lot of efforts to improve the quality resources for children in Papua through various things. From building schools to providing education scholarship, operational assistance, and additional fee for support teachers.
The most unique and interesting thing is, the students in Asiki Village don’t have to go through the forest and wallow to go to school. This is because there are now 25 units of buses ready to take them to reach their goals. In addition, KORINDO also provides facilities of Vocational Training Center (VTC) for high school students who cannot continue their education to college.
To maintain the health of the community in Asiki and the surrounding areas, KORINDO built Asiki Clinic in 1994. In its development, the clinic continues to be improved and expanded. Today, the clinic’s building, located in Jair District with a size of 1,270 m2 stands proudly on land of 2,929 m2.
Not only the size of the area, the types and quality of the services are also being improved. Members of BPJS Health are now able to use the facilities. The health services provided are also relatively equipped, from general practitioners, emergency unit, to delivery room and care room for babies. The outreach of health examinations are also expanded with mobile clinic service which is already present in six villages around Jair District.
Building the border regions as Indonesia’s terrace. That is the message KORINDO wants to convey to the world when talking about CSR in economy and infrastructure. In terms of employment absorption, KORINDO has absorbed no less than 10,000 workers from Papua. This policy certainly has made the living standards of the community improved, unemployment reduced, and people’s productivity within the productive age is at the peak performance.
KORINDO’s contribution to the Regional Original Income (PAD) cannot be taken lightly either. KORINDO is recorded as the highest tax-paying company for Merauke Regency (30 percent of the total local tax revenues) and Boven Digoel (50 percent). Through this tax revenue, the regional government is able to be more flexible in developing the regions.
In infrastructure, KORINDO becomes one of the first companies that developed Trans-Papua Highway. The inter-province road, which spans more than 4,300 kilometers and was inaugurated in Joko Widodo government era, crosses through the oil palm plantation owned by KORINDO.
Recently, KORINDO has also taken part in building Totora River Bridge located in Prabu-Asiki Village. This bridge is not a regular bridge, because this is the only infrastructure that connects Aiwat Village with other regions in Jair and Subur Districts. The connectivity and economic activities between those regions rely heavily on the 15-meter-long bridge.
At the beginning, Totora River Bridge was only built using wood. Due to the age, the bridge slowly began to experience damage. Concerned about the bridge getting worse, PT Korindo Abadi, a subsidiary of KORINDO Group, immediately restored the bridge with concrete filling. Today, people in Prabu-Asiki are able to breathe more easily and have a cheerful smile.
Lastly, in the field of environment, KORINDO has built eco-friendly biomass power plant (PLTBm) in Wapeko, Merauke. Bursts of electricity generated reach 10 MW. Enough for electricity distribution to Special Economic Zones (SEZ) in Salor region.
Why is it called eco-friendly? Because the perimeter of the PLTBm area of 7,200 Ha is filled with plants like Jabon and Eucalyptus. Later on, both of the plant types will be the raw material to generate eco-friendly electricity. This is in accordance with our goal of utilizing New and Renewable Energy (EBT) in a more optimal way.
To see some achievements from KORINDO CSR programs throughout 2018, let’s take a look at the following video:
What has been done by KORINDO should be able to open our eyes. The disparity which is so obvious between the border regions and in Java Island should not be allowed to continue. Because our brothers who are living in the border regions have the same right to enjoy the fruits of the country’s development. There should not be people who are left behind or left out deliberately.
KORINDO has also proven that a synergy between the private sector, the government, and the local community is the key to developing underdeveloped regions. No need to rush or make haste. Let the development flow naturally without being forced. Just take it slowly, as long as it remains on a sustainable path.
Now, let’s imagine for a while. If only all companies that explore natural resources in Indonesia follow KORINDO’s steps, we can be optimistic. The disparity in the border regions, sooner or later, would be erased. Human resources in Indonesia will be continously improved, equitable, and fair. Just like the fifth principle of Pancasila: Social justice for all the people of Indonesia.
Yes. This is a hope we share. A hope from the founders of the nation, people who supported the independence, and all of us who are living at this moment. Because we want Indonesia that is being handed down to our future children, is the Indonesia with the best “house yard” in the world, which is no less majestic than the “living room”. That’s all.
This article is submitted into the KORINDO Blog Competition held by KORINDO. The link of this article has been shared on the writer’s personal accounts on Instagram, Facebook, and LinkedIn.
All pictures featured on this article are processed by the writer. All sources of pictures are listed on each picture. The videos are sourced from KORINDO Group’s YouTube channel.
BPS. 2019. Provincial Human Development Index, 2010-2018 (New Method). [online] (https://www.bps.go.id/linkTableDinamis/view/id/1211, accessed on 10th Mei 2019).
Ministry of National Development Planning/National Development Planning Agency. 2016. Final Report on Strategic Coordination of Acceleration of Underdeveloped Regions Development Program to Support Presidential Regulation No.78 of 2014 and Presidential Regulation No.131 of 2015. Jakarta: Bappenas.
Korindo. 2018. KORINDO CSR Report 2017: Continuously working for a better society. Jakarta: Korindo.
Korindo. 2018. KORINDO Papua Bangun Jembatan untuk Masyarakat Pedalaman. [online] (https://www.korindo.co.id/korindo-papua-bangun-jembatan-untuk-masyarakat-pedalaman/?lang=id, accessed on 9th May 2019).
Korindo. 2019. Bangun Perbatasan Jadi Terasnya Indonesia. [online] (https://korindonews.com/border-building-to-becomes-a-terrace-of-indonesia/?lang=id, accessed on 9th May 2019).
The Government of the Republic of Indonesia. 2014. Governmental Regulation No. 78 of 2014 on Acceleration of Development of Least-Developed Areas. Jakarta: State Secretariat of the Republic of Indonesia.
The Government of the Republic of Indonesia. 2015. Presidential Regulation No. 131 of 2015 on Determination of Disadvantaged Regions 2015-2019. Jakarta: State Secretariat of the Republic Indonesia.