INTEGRATION OF CSR PROJECTS IN COAL MINING ACTIVITIES IN ACEH

Muhammad Dhafi Iskandar

Abstract


Indonesia with its vast number of coal resources and natural resources exploitation and mining operational activities are expected to bring economic impacts both in terms of infrastructure, Corporate Social Responsibility (CSR), employment, etc., which is in line with the concept of business ethics and the essence of rights and duties in society. Yet, many problems that are supposed to be solved with such potentials are not effectively reduced or diminished. Government regulation states that companies are required to develop community development and empowerment programs in the vicinity of the mining area which must first be consulted with the local government and communities, where they can propose a program. Those are prioritized to the surrounding communities that are directly affected by mining activities, regardless of administrative boundaries of the district area. This research was conducted through observation, interviews, reports, and papers from coal mining companies and related institutions on action planning research methods which then focused on analysing the development of mining in Aceh, where the hypothesis that emerged is regarding the possibility to combine mining, forestry products, plantation, poultry, and fishery in the coal mining concession area in Aceh to reduce the negative impact. Collaboration with the local community can be utilized for village development and construction of mining company’s needs, along with the potential to produce additional profits for both parties. Hence, this could serve as a solution to illegal logging and mining as well as land burning and conflicts, through the system of cooperation and profit sharing. Additional programs on health, education and infrastructure that are based on surveys and research produce appropriate results according to the root of the problem and actual needs, which the community may not have previously realized.


Keywords


Corporate Social Responsibility, mining, community, collaboration.

Full Text:

PDF

References


Bhattacharyya, S., Resosudarmo, B. P., (2013): Growth, Growth Accelerations, and the Poor: Lessons from Indonesia, Working Papers in Trade and Development No. 2013/15, Australian National University.

BPS-Statistics Indonesia (2019): Welfare Statistics, Jakarta, Available at: https://www.bps.go.id/publication/2019/11/22/1dfd4ad6cb598cd011b500f7/statistik-kesejahteraan-rakyat-2019.html. Downloaded in 3 July 2020.

Coghlan, D., Shani, A. B., (2005): Roles, Politics, and Ethics in Action Research Design, Systemic Practice and Action Research, 18 (6), 533 – 546.

Collier, P., Hoeffler, A., (2004): Greed and grievance in civil war, Oxford Economic Papers, 56 (4), 563 – 595.

Edwards, R., Has Resource Extraction Reduced Poverty?, Inside Indonesia, Edition 130: Oct-Dec 2017, Available at: http://www.insideindonesia.org/has-resource-extraction-reduced-poverty, Accessed: July 2020.

Ferlito C., Respatiadi, H., Policy Reforms on poultry industry in Indonesia, Food Policy, Center for Indonesian Policy Studies, Available at: https://www.cips-indonesia.org/copy-of-empowering-parents-innovati-1. Downloaded in 5 November 2019.

Food and Agriculture Organization, Aquaculture, Available at: http://www.fao.org/3/x6941e/x6941e04.htm, Accessed: 28 June 2019.

Frank, F., Wright, E. O., (1999): The community development handbook: A tool to build community capacity, Quebec, Minister of Public Works and Government Services, 3.

Hadi D., (2019): Aceh Environmental and Forestry Service: Community Empowerment and Counseling, Section Chief, Banda Aceh, Indonesia, Interviewed in 30 October 2019.

Indonesian Center for Estate Crops Research and Development, Definition of plantation, Available at: http://perkebunan.litbang.pertanian.go.id/definisi-perkebunan/, Accessed: 29 June 2019.

Kasli, R., Chairman, Association of Indonesian Mining Professionals, Jakarta, Indonesia, Interviewed on 6 February 2019.

Lewin, K., (1946): Action Research and Minority Problems, Journal of Social Issues, 2 (4), 34 – 46.

Ministry of Industry of Indonesia, Timber Industry has difficulty penetrating the European market, Available at: https://kemenperin.go.id/artikel/5476/kode-etik, Accessed: 29 June 2019.

Nicholson, W., (2001): Microeconomic Theory: Basic Principles and Extensions, Mason, Thomson South-Western.

Reason, P., Bradbury, H., (2001): Handbook of Action Research: Participative Inquiry and Practice, London, Sage Publications, 1.

Setiawan D., (2020): Operational Director, PT Surya Makmur Indonesia, Jakarta, Indonesia, Interviewed in 2 July 2020.

Sharma, N., Acharya, S., Kumar, K., Singh, N., Chaurasia, O. P., (2018): Hydroponics as an advanced technique for vegetable production: An overview, Journal of Soil and Water Conservation, 17 (4), 364 – 371.

Susman G. I., Evered, R. D., (1978): An Assessment of the Scientific Merits of Action Research, Administrative Science Quarterly, 23 (4), 582 – 603.

Usman, Section Chief, Forest Management (KPH) Region IV Aceh, Aceh Forestry Service, Banda Aceh, Indonesia, Interviewed on 30 July 2018.

Velasquez, M. G., (2012): Business Ethics: Concept and Cases, 7th Ed., Pearson, USA.

World Wild Life, Farmed Shrimp, Available at: https://www.worldwildlife.org/industries/farmed-shrimp, Accessed: 28 June 2019.


Article Metrics

Abstract view : 0 times
PDF - 0 times

DOI: https://doi.org/10.36986/ptptp.v0i0.164

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.