IDEAS home Printed from https://ideas.repec.org/a/gam/jlands/v9y2020i3p61-d324659.html
   My bibliography  Save this article

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

Author

Listed:
  • Stephany I Pasaribu

    (Faculty of Spatial Sciences, University of Groningen, 9747 AD Groningen, The Netherlands)

  • Frank Vanclay

    (Faculty of Spatial Sciences, University of Groningen, 9747 AD Groningen, The Netherlands)

  • Yongjun Zhao

    (Faculty of Spatial Sciences, University of Groningen, 9747 AD Groningen, The Netherlands)

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.

Suggested Citation

  • Stephany I Pasaribu & Frank Vanclay & Yongjun Zhao, 2020. "Challenges to Implementing Socially-Sustainable Community Development in Oil Palm and Forestry Operations in Indonesia," Land, MDPI, vol. 9(3), pages 1-19, February.
    • Handle: RePEc:gam:jlands:v:9:y:2020:i:3:p:61-:d:324659
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2073-445X/9/3/61/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2073-445X/9/3/61/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Busscher, Nienke & Parra, Constanza & Vanclay, Frank, 2018. "Land grabbing within a protected area: The experience of local communities with conservation and forestry activities in Los Esteros del Iberá, Argentina," Land Use Policy, Elsevier, vol. 78(C), pages 572-582.
    2. Ralph Hamann, 2003. "Mining companies' role in sustainable development: The 'why' and 'how' of corporate social responsibility from a business perspective," Development Southern Africa, Taylor & Francis Journals, vol. 20(2), pages 237-254.
    3. van der Ploeg, Lidewij & Vanclay, Frank, 2018. "Challenges in implementing the corporate responsibility to respect human rights in the context of project-induced displacement and resettlement," Resources Policy, Elsevier, vol. 55(C), pages 210-222.
    4. Nienke Busscher & Constanza Parra & Frank Vanclay, 2020. "Environmental justice implications of land grabbing for industrial agriculture and forestry in Argentina," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 63(3), pages 500-522, February.
    5. Dhiaulhaq, Ahmad & McCarthy, John F. & Yasmi, Yurdi, 2018. "Resolving industrial plantation conflicts in Indonesia: Can mediation deliver?," Forest Policy and Economics, Elsevier, vol. 91(C), pages 64-72.
    6. Glenn Banks & Regina Scheyvens & Sharon McLennan & Anthony Bebbington, 2016. "Conceptualising corporate community development," Third World Quarterly, Taylor & Francis Journals, vol. 37(2), pages 245-263, February.
    7. Gardner, Katy & Ahmed, Zahir & Bashir, Fatema & Rana, Masud, 2012. "Elusive Partnerships: Gas extraction and CSR in Bangladesh," Resources Policy, Elsevier, vol. 37(2), pages 168-174.
    8. Michael Euler & Stefan Schwarze & Hermanto Siregar & Matin Qaim, 2016. "Oil Palm Expansion among Smallholder Farmers in Sumatra, Indonesia," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(3), pages 658-676, September.
    9. Frank Vanclay & Philippe Hanna, 2019. "Conceptualizing Company Response to Community Protest: Principles to Achieve a Social License to Operate," Land, MDPI, vol. 8(6), pages 1-31, June.
    10. 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.
    11. Jim Cavaye & Helen Ross, 2019. "Community resilience and community development: What mutual opportunities arise from interactions between the two concepts?," Community Development, Taylor & Francis Journals, vol. 50(2), pages 181-200, March.
    12. Sharon McLennan & Glenn Banks, 2019. "Reversing the lens: Why corporate social responsibility is not community development," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(1), pages 117-126, January.
    13. Subhabrata Bobby Banerjee, 2003. "The Practice of Stakeholder Colonialism: National Interest and Colonial Discourses in the Management of Indigenous Stakeholders," Palgrave Macmillan Books, in: Anshuman Prasad (ed.), Postcolonial Theory and Organizational Analysis: A Critical Engagement, chapter 0, pages 255-279, Palgrave Macmillan.
    14. Prno, Jason & Scott Slocombe, D., 2012. "Exploring the origins of ‘social license to operate’ in the mining sector: Perspectives from governance and sustainability theories," Resources Policy, Elsevier, vol. 37(3), pages 346-357.
    15. Gardner, Katy & Ahmed, Zahir & Bashir, Fatema & Rana, Masud, 2012. "Elusive partnerships: gas extraction and CSR in Bangladesh," LSE Research Online Documents on Economics 52763, London School of Economics and Political Science, LSE Library.
    16. Regina Scheyvens & Glenn Banks & Emma Hughes, 2016. "The Private Sector and the SDGs: The Need to Move Beyond ‘Business as Usual’," Sustainable Development, John Wiley & Sons, Ltd., vol. 24(6), pages 371-382, November.
    17. Natalia Vidal & Gary Bull & Robert Kozak, 2010. "Diffusion of Corporate Responsibility Practices to Companies: The Experience of the Forest Sector," Journal of Business Ethics, Springer, vol. 94(4), pages 553-567, July.
    18. Vijesh Krishna & Michael Euler & Hermanto Siregar & Matin Qaim, 2017. "Differential livelihood impacts of oil palm expansion in Indonesia," Agricultural Economics, International Association of Agricultural Economists, vol. 48(5), pages 639-653, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jun Harbi & Yukun Cao & Noril Milantara & Gamin & Ade Brian Mustafa & Nathan James Roberts, 2021. "Understanding People−Forest Relationships: A Key Requirement for Appropriate Forest Governance in South Sumatra, Indonesia," Sustainability, MDPI, vol. 13(13), pages 1-22, June.
    2. Shirlene Jane Nicole & Suddin Lada & Rudy Ansar & Azaze-Azizi Abdul Adis & Lim Ming Fook & Brahim Chekima, 2022. "Corporate Social Responsibility and Strategic Management: A Bibliometric Analysis," Sustainability, MDPI, vol. 14(17), pages 1-14, August.
    3. Zia Ullah & Mohammed Ali Bait Ali Sulaiman & Syed Babar Ali & Naveed Ahmad & Miklas Scholz & Heesup Han, 2021. "The Effect of Work Safety on Organizational Social Sustainability Improvement in the Healthcare Sector: The Case of a Public Sector Hospital in Pakistan," IJERPH, MDPI, vol. 18(12), pages 1-18, June.
    4. Mangku Purnomo & Erekso Hadiwiyono & Novil Dedy Andriatmoko & Imaniar Ilmi Pariasa & Asihing Kustanti & Heiko Faust, 2022. "Transformation Role of Forest Farmer Group’s (FFGs) in Indonesia from Development Agent to Brokering Project," SAGE Open, , vol. 12(1), pages 21582440221, March.
    5. Stephany Iriana Pasaribu & Frank Vanclay, 2021. "Children’s Rights in the Indonesian Oil Palm Industry: Improving Company Respect for the Rights of the Child," Land, MDPI, vol. 10(5), pages 1-21, May.
    6. Karina Castro-Arce & Frank Vanclay, 2020. "Community-Led Green Land Acquisition: Social Innovative Initiatives for Forest Protection and Regional Development," Land, MDPI, vol. 9(4), pages 1-15, April.
    7. Zia Ullah & Susana Álvarez-Otero & Mohammed Ali Bait Ali Sulaiman & Muhammad Safdar Sial & Naveed Ahmad & Miklas Scholz & Khaoula Omhand, 2021. "Achieving Organizational Social Sustainability through Electronic Performance Appraisal Systems: The Moderating Influence of Transformational Leadership," Sustainability, MDPI, vol. 13(10), pages 1-14, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stephany Iriana Pasaribu & Frank Vanclay, 2021. "Children’s Rights in the Indonesian Oil Palm Industry: Improving Company Respect for the Rights of the Child," Land, MDPI, vol. 10(5), pages 1-21, May.
    2. Sharon McLennan & Glenn Banks, 2019. "Reversing the lens: Why corporate social responsibility is not community development," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(1), pages 117-126, January.
    3. Hughes, Emma & Scheyvens, Regina, 2021. "Tourism partnerships: Harnessing tourist compassion to ‘do good’ through community development in Fiji," World Development, Elsevier, vol. 145(C).
    4. Karina Castro-Arce & Frank Vanclay, 2020. "Community-Led Green Land Acquisition: Social Innovative Initiatives for Forest Protection and Regional Development," Land, MDPI, vol. 9(4), pages 1-15, April.
    5. Veldhuizen, Caroline & Desouza, Kevin C. & Bandara, Wasana & Chang, Artemis, 2022. "How much is not enough: Corporate social responsibility and beyond in the resources sector," Resources Policy, Elsevier, vol. 79(C).
    6. Kubitza, Christoph & Dib, Jonida Bou & Kopp, Thomas & Krishna, Vijesh V. & Nuryartono, Nunung & Qaim, Matin & Romero, Miriam & Klasen, Stephan, 2019. "Labor savings in agriculture and inequality at different spatial scales: The expansion of oil palm in Indonesia," EFForTS Discussion Paper Series 26, University of Goettingen, Collaborative Research Centre 990 "EFForTS, Ecological and Socioeconomic Functions of Tropical Lowland Rainforest Transformation Systems (Sumatra, Indonesia)".
    7. Bou Dib, Jonida & Alamsyah, Zulkifli & Qaim, Matin, 2018. "Land-use change and income inequality in rural Indonesia," Forest Policy and Economics, Elsevier, vol. 94(C), pages 55-66.
    8. Nadjia Mehraban & Christoph Kubitza & Zulkifli Alamsyah & Matin Qaim, 2021. "Oil palm cultivation, household welfare, and exposure to economic risk in the Indonesian small farm sector," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(3), pages 901-915, September.
    9. Chrisendo, Daniel & Krishna, Vijesh V. & Siregar, Hermanto & Qaim, Matin, 2020. "Land-use change, nutrition, and gender roles in Indonesian farm households," Forest Policy and Economics, Elsevier, vol. 118(C).
    10. Tom Ogwang & Frank Vanclay, 2019. "Social Impacts of Land Acquisition for Oil and Gas Development in Uganda," Land, MDPI, vol. 8(7), pages 1-15, July.
    11. Santika, Truly & Wilson, Kerrie A. & Budiharta, Sugeng & Law, Elizabeth A. & Poh, Tun Min & Ancrenaz, Marc & Struebig, Matthew J. & Meijaard, Erik, 2019. "Does oil palm agriculture help alleviate poverty? A multidimensional counterfactual assessment of oil palm development in Indonesia," World Development, Elsevier, vol. 120(C), pages 105-117.
    12. Alberto Diantini & Salvatore Eugenio Pappalardo & Tim Edwards Powers & Daniele Codato & Giuseppe Della Fera & Marco Heredia-R & Francesco Facchinelli & Edoardo Crescini & Massimo De Marchi, 2020. "Is this a Real Choice? Critical Exploration of the Social License to Operate in the Oil Extraction Context of the Ecuadorian Amazon," Sustainability, MDPI, vol. 12(20), pages 1-24, October.
    13. Rudolf, Katrin & Romero, Miriam & Asnawi, Rosyani & Irawan, Bambang & Wollni, Meike, 2020. "Effects of information and seedling provision on tree planting and survival in smallholder oil palm plantations," Journal of Environmental Economics and Management, Elsevier, vol. 104(C).
    14. Thomas Kopp & Richard J. Sexton, 2021. "Farmers, Traders, and Processors: Buyer Market Power and Double Marginalization in Indonesia," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(2), pages 543-568, March.
    15. Edi Purwanto & Hery Santoso & Idsert Jelsma & Atiek Widayati & Hunggul Y. S. H. Nugroho & Meine van Noordwijk, 2020. "Agroforestry as Policy Option for Forest-Zone Oil Palm Production in Indonesia," Land, MDPI, vol. 9(12), pages 1-34, December.
    16. Tabe-Ojong, Martin Paul Jr. & Ordway, Elsa M. & Nkongho, Raymond N. & Molua, Ernest L., 2022. "Oil palm expansion among non-industrial producers in Cameroon: Potentials for synergy between agro-economic gains and ecological safeguards," Forest Policy and Economics, Elsevier, vol. 135(C).
    17. Petri, Heinrich & Hendrawan, Dienda & Bähr, Tobias & Asnawi, Rosyani & Mußhoff, Oliver & Wollni, Meike & Faust, Heiko, 2022. "The challenges Indonesian oil palm smallholders face when replanting becomes necessary, and how they can be supported: A review," EFForTS Discussion Paper Series 36, University of Goettingen, Collaborative Research Centre 990 "EFForTS, Ecological and Socioeconomic Functions of Tropical Lowland Rainforest Transformation Systems (Sumatra, Indonesia)".
    18. İnan, Canan Emek & Albulut, Koray, 2022. "Linking actors and scales by green grabbing in Bozbük and Kazıklı," Land Use Policy, Elsevier, vol. 120(C).
    19. Keijiro Otsuka, 2021. "Strategy for Transforming Indonesian Agriculture," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 57(3), pages 321-341, September.
    20. Kibrom T. Sibhatu & Matin Qaim, 2018. "Farm production diversity and dietary quality: linkages and measurement issues," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 10(1), pages 47-59, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jlands:v:9:y:2020:i:3:p:61-:d:324659. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.