Challenges to Implementing Socially-Sustainable Community Development in Oil Palm and Forestry Operations in Indonesia

Abstract

Through the lenses of community development and social licence to operate, we consider the complex relationships between local communities and forest plantation and oil palm companies. We examine the practical challenges in implementing socially-sustainable community development (SSCD) by analyzing two corporate social investment community development projects located in West Kalimantan, Indonesia: Desa Makmur Peduli Api (integrated fire management) and Pertanian Ekologi Terpadu (ecological farming). Our study scrutinized: (i) What were the practice challenges faced by the companies in establishing SSCD?; Along with (ii) what should be done to improve how SSCD is undertaken, especially in Indonesia? We identified five challenges: (1) unresolved land conflict; (2) determining the right program; (3) building community capacity rather than providing irrelevant training; (4) a shortage of company field staff and government facilitators; and (5) managing community expectations. Better governance of SSCD will reduce conflict between affected communities and companies.

Implementasi Kebijakan dan Program Corporate Social Responsibility (CSR) Perusahaan Perkebunan Kelapa Sawit Di PT Perkebunan Nusantara V Provinsi Riau

“…Program tersebut menyebabkan tingkat pemberdayaan dirasa oleh masyarakat kurang dilakukan oleh perusahaan seperti pada indikator 4 dan 5. Pasaribu et al (2020) dalam penelitiannya di Kalimantan Barat menyatakan pentingnya pelaksanaan CSR yang lebih spesifik yaitu community development, dimana program ini lebih menyasar kepada kelompok rentan untuk meningkatkan perekonomian dan Sumber Daya Masyarakat (SDM) serta meningkatkan reduce konflik yang mungkin akan terjadi di masa yang akan datang. PTPN V sendiri sebenarnya sudah melakukan gerakan dalam rangka peningkatan perekonomian masyarakat dengan sistem program kemitraan yang berupa memberikan pinjaman lunak kepada masyarakat sesuai dengan peraturan yang diatur oleh menteri BUMN.…”

Understanding People−Forest Relationships: A Key Requirement for Appropriate Forest Governance in South Sumatra, Indonesia

“…We need to clarify land ownership in the form of a land property right with a formal title by virtue of the boundaries that have been established. In Indonesia, land formal title clarity is very rare [90], while confirmation of land management actions by the owner and empowerment actions by the government or other parties is crucial [91]. In their accounts of surrounding villages, the smallholders argued that clarifying the land's status would improve the legal validity and ownership responsibility of land use.…”

Modifying social impact assessment to enhance the effectiveness of company social investment strategies in contributing to local community development

“…obtaining a 'social license to operate' Vanclay 2017, 2018); and running the business in an environmentally and socially sustainable manner (IFC 2010). Many companies, especially those at risk of having problems with host communities, seek remediation of tension by undertaking social investment activities (Esteves et al 2017;Pasaribu et al 2020). Sometimes social investment might be required by project lenders (Vanclay and Hanna 2019).…”