The company’s long-term community development program has strengthened local enterprises across 114 villages in Kalimantan through capacity building, market access, and sustainable business support.
PALMOILMAGAZINE, Jakarta, Indonesia — PT Bumitama Gunajaya Agro (BGA Group) has been honored with the Medbun Awards 2026 in the Excellence in CSR for Empowering Community Economic Development category, recognizing its sustained commitment to fostering economic self-reliance among communities surrounding its plantation operations.
The award acknowledges Bumitama’s community development strategy, which emphasizes strengthening local capacity rather than providing one-off financial assistance. Through structured mentoring, the company helps rural communities improve entrepreneurial skills, strengthen business governance, and expand access to markets and financing.
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The initiative is implemented under Bumitama Berdaya, particularly through the KOLEGA Ekonomi Produktif (BGA External Community Development Groups) program. The program is designed to enhance economic opportunities across 114 villages located near the company’s operations in Central and West Kalimantan.
According to an official statement received by PalmOilMagazine on Friday (July 31), Bumitama’s socio-economic assessment found that approximately 32% of its partner villages still require greater economic development support. In response, the company has introduced a range of initiatives aimed at creating new business opportunities, generating employment, and increasing household incomes through sustainable local enterprises.
As of May 2026, the KOLEGA program had supported 41 community business groups involving 241 members across 29 villages. The enterprises reflect the economic potential of each locality, covering horticulture, livestock farming, fisheries, food processing, and handicraft production.
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Beyond improving production capabilities, Bumitama provides comprehensive assistance in human capital development through its Sekolah Desa Berdaya (Empowered Village School), institutional strengthening, business governance, legal registration, and access to financing.
The program has also delivered measurable governance improvements. All participating groups now have formal organizational structures, while 85% have adopted standardized financial record-keeping systems. Meanwhile, 59% have implemented standard operating procedures (SOPs), and several groups have secured key business certifications, including Business Identification Numbers (NIB), Home Industry Food Production Certificates (PIRT), and Halal certification.
To strengthen commercial sustainability, Bumitama has expanded market access for products produced by community groups. Their goods are now sold not only in local markets but also through regional supermarkets, SME exhibitions, and Bumitama’s corporate headquarters in Jakarta.
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The company has further supported business growth by facilitating access to financing through partnerships with financial institutions, including Bank Syariah Indonesia (BSI) and Permodalan Nasional Madani (PNM). The financing support has helped improve business resilience while enabling participating groups to steadily increase their revenues.
Bumitama said the success of community empowerment should not be measured solely by the amount of assistance provided, but by the ability of communities to build independent, competitive businesses that generate lasting economic benefits for local residents. (P2)
