The Effectiveness of Community Development and Environmental Protection Program in Oil and Gas Industry in Indonesia: Policy, Institutional, and Implementation Review

Martha Fani Cahyandito

Journal of Management and Sustainability, 2017, vol. 7, issue 1, 115-126

Abstract: In all industries, inclusively oil and gas, Corporate Social Responsibility (CSR), including community development and environmental protection, have a significance role for the sustainability of company business. However, despite established government regulations and a large amount of company budget for the program, the big question that arises is whether these programs have been effectively addressed the social and environmental needs of surrounding communities, and whether the program succeeded in supporting the sound operation of oil and gas companies. This qualitative research is conducted by collecting data from the central and local governments in Indonesia, from oil and gas companies throughout Indonesia, as well as from communities near operating areas, through desk study, survey, in-depth interviews, and Focus Group Discussion (FGD). The results showed that, in general, the community development and environmental protection program have been implemented. Unfortunately, the programs have not been yet fit to the societies socio-environmental condition, have not been yet answered all communities¡¯ social, economic, environmental, and cultural issues, and have not been yet fully supported the sound operation of the company. This means that the programs have not been used effectively.

Keywords: CSR; community development; environmental protection; stakeholder needs; regulation; oil and gas (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:ibn:jmsjnl:v:7:y:2017:i:1:p:115-126

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