Preliminary study on community development in the mining industry in Indonesia Robby Erlangga, Virgin Ayu Sagita, Arika Bagus Perdana, Keny Rahmawati, Aldin Ardian
(a) Universitas Pembangunan Nasional ^Veteran^ Yogyakarta, Department of Mining Engineering, Jalan Ring Road Utara, Yogyakarta 55283, Indonesia
(b) Universitas Pembangunan Nasional ^Veteran^ Yogyakarta, Department of Communication Science, Jalan Ring Road Utara, Yogyakarta 55283, Indonesia
(b) Universitas Pembangunan Nasional ^Veteran^ Yogyakarta, Department of Business Administration, Jalan Ring Road Utara, Yogyakarta 55283, Indonesia
Abstract
Community development (CD) in the mining industry in Indonesia is newly introduced and enforced. It has a rigid and unique concept where the programs and the minimum expenses are strictly determined by the government. This paper unfolded the complexity of the CD concept in Indonesia. The discussion focused on the history, regulation, comparison to the other countries, and the next possible form of the CD in Indonesia. The very beginning concept of CD was included in the Law no. 4/2009 concerning Mineral and Coal Mining. The regulation evolved, then recently eight pillars were mandated in the CD programs: (1) education- (2) health- (3) income levels or employment- (4) economic independence- (5) social and cultural aspects- (6) enhancing local participation in the management of mining areas- (7) the formation of institutions supporting community development- and (8) infrastructure that supports community development. Moreover, the development must follow the regional blueprint. Finally, the current issue in the CD policy is to formulate the lower limit of the CD expenses for each mining company in the country. The CD policy in Indonesia, nevertheless, is still evolving. The CD is supposed to benefit the local community, but simultaneously keep the industry attractive to the investors. It is challenging not only for the mining companies due to its details, but also for the government due to its minimum fund that has not been decided to balance the local needs and the investors expectation.
Keywords: community development, mining industry, Indonesia, mining policy, regional development
