ITM engages in Community Development activities as part of its commitments concerning its CSR as well as to comply with pertinent government rules and regulations in this aspect.

There are three main categories of Community Development efforts undertaken by ITM. The first of these is economic development with the aim of improving the economic welfare of communities by providing access to capital and skill development as well as support for economic activities using available local resources.

Next is social development, which aims at improving the quality of life in communities through the provision of healthcare and educational facilities as well as programs to help preserve local arts and culture. The third category is environment preservation, mainly through support for the Kutai National Park, education in the environment for children, an environment awareness program and participation in tree re-planting programs.

To determine particular activities within each of these categories, communities are first asked to conduct a survey mapping the local condition and resources, aided by designated Community Development Officers (CDO) from ITM. The results from these surveys become the basis for the selection of programs by the CCC established in the respective fostered villages or areas, representing local leaders and community members. The various CCCs, consisting of representataives and customary community leaders, meet twice a year to democratically discuss program priority and selection, which are revised as needed from time to time with consideration of budget, activity time frame, and availability of skills.

In the CCC meeting, members discuss the various program proposals to ensure that they represent the actual needs of the majority community in the villages and will therefore benefit the greatest number of villagers. Thus, program selection is not made based on wishes or unreasonable demands from certain individuals or small involved groups, but by agreement of community members through their representatives in the CCC.

From the perspective of ITM as well as local governments, the CCCs also serve as a means to maintain social harmony with regards to the Company and its activities, as well as to promote self reliance in communities around the operating areas of ITM. Over time, these self-reliant communities are expected to be able to plan, execute, and supervise development of the villages on their own initiative based on sustainability practices and utilisation of local resources and potential, and thus reduce their dependency on the Company.

One of the major initiatives in economic development undertaken by ITM in 2009 is the establishment of a Micro Financing Institution (LKM) by PT Indominco Mandiri, with the cooperation of PT Permodalan Nasional Madani, which provided initial capital of Rp 100 million for the LKM that functions as a savings and loan cooperative. At present, some 65 members are engaged in a variety of productive economic activities using loans provided by the cooperative.

ITM has also developed a Community Development Management Information System, an online data base information system to monitor the progress of the Community Development programs at various sites. One of the measures of success of a community development program is the level of active participation from the community, the local government, and the Company itself.