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

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  • Martha Fani Cahyandito

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.

Suggested Citation

  • Martha Fani Cahyandito, 2017. "The Effectiveness of Community Development and Environmental Protection Program in Oil and Gas Industry in Indonesia: Policy, Institutional, and Implementation Review," Journal of Management and Sustainability, Canadian Center of Science and Education, vol. 7(1), pages 115-126, March.
    • Handle: RePEc:ibn:jmsjnl:v:7:y:2017:i:1:p:115-126
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    References listed on IDEAS

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    1. John Morrison, 2014. "The Social License," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-137-37072-3.
    2. John Morrison, 2014. "The social license," Palgrave Macmillan Books, in: The Social License, chapter 0, pages 12-28, Palgrave Macmillan.
    3. M. Fani Cahyandito, 2011. "Coupling Corporate Social Responsibility into Millenium Development Goals is a mere Wishful Thinking?," Working Papers in Business, Management and Finance 201103, Department of Management and Business, Padjadjaran University, revised Mar 2011.
    4. B. Tamam Achda, 2006. "The sociological context of corporate social responsibility development and implementation in Indonesia," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 13(5), pages 300-305, December.
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    Cited by:

    1. Fatma Lestari & Yasuhito Jibiki & Daisuke Sasaki & Dicky Pelupessy & Agustino Zulys & Fumihiko Imamura, 2021. "People’s Response to Potential Natural Hazard-Triggered Technological Threats after a Sudden-Onset Earthquake in Indonesia," IJERPH, MDPI, vol. 18(7), pages 1-17, March.

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    More about this item

    Keywords

    CSR; community development; environmental protection; stakeholder needs; regulation; oil and gas;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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