Keywords

Corporate Social Responsibility, Community Development and Empowerment Program, CSR-PPM

Introduction

Since the government enacted the Law on Limited Liability Company (No. 40 of 2007), the characteristics of Corporate Social Responsibility (CSR) in Indonesia have shifted toward mandatory CSR. (Andrini, 2016; Chang, 2018; Kriyantono, 2015; Waagstein, 2011). Included in Law No. 32 of 2009 on Environmental Protection fund Management, Law No. 25 of 2007 on Investment, Regulation No 47 of the Government of 2012 on social and environmental responsibility for limited companies are also regulations related to CSR implementation obligations by companies in Indonesia. This rule applies to companies in Indonesia in general, not least companies in the coal mining and mineral industry.

CSR implementation in the coal mining and mineral industry (Minerba) received great attention at the global level as well as at the national level due to the social and environmental impacts of mining activities (Jenkins, 2004; Jenkins & Obara, 2006; Rela et al., 2020). CSR obligations of the coal mining and mineral in Indonesia refer to 2 models, namely the Partnership and Community Development Program (PKBL) model implemented by state-owned mining companies (BUMN) and the Community Development and Empowerment Program (PPM) model for general mineral and coal mining companies. The PKBL model refers to the principles and standards of sustainability reporting governed by GRI (Global Reporting Initiatives). PPM model on the other hand is a form of implementation of unique CSR obligations and accommodates the characteristics of government administration management in Indonesia. This study focuses more attention on the second model, given the uniqueness of these characteristics.
This research was conducted for several purposes, namely: identifying a summary of PPM CSR studies in the mineral and coals mining industry in Indonesia and identifying the main concerns of criticism of the implementation of CSR PPM in Indonesia. For this purpose, the study is organized in several parts. The second and third sections contain a review of CSR regulations in Indonesia and research methods. Analysis of bibliographic annotations and conclusions is presented in the fourth and fifth sections respectively.

CSR Regulation of Mineral and Coals Mining in Indonesia

For companies in Indonesia, CSR implementation is compulsory since the following regulations are enacted, namely: Investment Law No. 25 of 2007, Environmental Protection and Managerial Law No. 32 of 2009, Law No 40, 2007 on Limited Liability Companies, and Limited Companies Government Regulation No 47, 2012. In addition to these general rules, the structures of the rules specifically applied related to the implementation of CSR in the mining industry are:

a. Law No 22, 2001 on Oil and Gas

b. Law No 3, 2020 (an amendment to Mineral and Coals Mining Act No. 4 of 2009)

c. Geothermal Law No. 21 of 2014

d. Government Regulation No 24/2012 on the implementation of mineral and coals activities

e. The State-Owned Enterprises Partnership Program and its Community development programme (Soe PER-02/MBU/04/2020 third amendment PER-09/MBU/07/2015)

f. Community development and empowerment by Energy and Minerals Minister (Regulation No 41 of 2016)

g. Mineral and Coal Mining Regulation (Energy and Minerals Minister) No 25 of 2018

h. Minister for Energy and Minerals Resources Decree No 1824 2018 on Community Development and Empowerment Guidelines.

CSR Model of PPM Mineral and Coals Mining Industry

The CSR model of the national mineral and coals industry is regulated through 2 ministries, namely: the Ministry of Energy and Mineral Resources and the Ministry of State-Owned Enterprises and. The implementation model of the CSR to the General Mining and Coal Industries is regulated and implemented with the Community Development and Electricity Program of the Ministry of Energy and Minerals Resources (PPM). CSR-PPM is a program aimed at improving both the individual and the collective economic, educational, socio-cultural, healthcare and living conditions of people around the mine in order to enhance the standard of living of the people around it (Kementerian ESDM, 2016).

CSR-PPM is implemented through 8 areas, namely: health, education, real income level or employment, socio-cultural, economic independence, community participation in environmental management, the establishment of PPM supporting institutions and the development of PPM supporting infrastructure. The implementation of CSR-PPM refers to the PPM Master Plan (RI-PPM) prepared by the Governor in accordance with Medium-Term National and Regional Development Plan (RPJMN/D) and involves the regent/mayor in the region of mining business activities. Ri-PPM document contains each activity related to 8 specified areas in line with the areas that are the focus of basic government services (Kementerian ESDM, 2018).

Research Methods

This study uses library research methods by collecting literature relevant to research topics (Juanamasta, 2019; Kalbuana & Prasetyo, 2021; Prabowo, Rochmatulaili, Rusdiyanto & Sulistyowati, 2020; Luwihono, 2021; Prasetyo et al., 2021; Prasetyo, Aliyyah, Rusdiyanto & Nartasari, 2021b; Prasetyo, Aliyyah, Rusdiyanto & Suprapti, 2021; Indra Prasetyo, 2021; Rusdiyanto & Hidayat, 2020; Rusdiyanto, Agustia, Soetedjo & Septiarini, 2020; Rusdiyanto & Karman, 2020; Susanto, 2021; Shabbir, 2021; Aliyyah, 2021; Hastomo, Karno, Kalbuana, Meiriki & Sutarno, 2021; Kalbuana & Suryati, 2021; Kustiningsih, 2020; Prasetyo, Aliyyah, Rusdiyanto & Nartasari, 2021a; Prasetyo & Endarti, 2021) Literature collected in the form of: scientific articles, books, or internet sites containing relevant information or data (Mann, 2015). Data analysis is done with annotated bibliography techniques. This research literature data is obtained by accessing a database of popular literature with the following strategies:

1. The search for specific literature on CSR-PPM is conducted using keywords: Social Responsibility, Mineral and Coal Mining, Community Development and Empowerment, PPM and all equivalents and combinations of these keywords.

2. The literature obtained from the first strategy is further traced to obtain details of the attributes most relevant to the topics of CSR, Mining, Community Development and Empowerment/PPM. Validation of adequacy criteria of literature data is determined from the index of the source of literature.

Bibliographic Annotations and Discussions

Bibliography Annotation CSR-PPM Mining Industry in Indonesia

Annotations Bibiliografi Literature CSR PPM mining industry in Indonesia conducted in 32 articles in the following table 1:

Table 1 Csr Articles of PPM Mining Industry in Indonesia
Authors	Title	Year	Source	Publisher	Index
Dady prayogo	Evaluasi program corporate social responsibility dan community	2011	Maara human behavior studies in asia	Ui	GS*
Patricia rinwigati waagstein	The mandatory corporate social responsibility in indonesia: Problems and implications	2011	Journal of business ethics	Springer	Scopus
Romi marnelly	Corporate Social Responsibility (CSR): Review of theory and practice in Indonesia	2012	Business application journal	Uii	Sinta 5
Anggraeniprimawati	Peranan corporate social responsibility in community empowerment in Tabalong, South Kalimantan	2013	Sosio knsepsia	Kementerian sosial	Sinta 2
Asa ria pranoto,dede yusuf	CSR program based on community empowerment towards post-mining economic independence in Sarijaya Village	2014	Journal of social science and political science	Ugm	Scopus
Antonius suhadi,ar febrian, sri turatmiyah	Model Corporate Social Responsibility (CSR) coal mining company in Lahat district towards community empowerment based on local wisdom	2014	Journal of legal dynamics	Jenderal Soedirman University	Sinta 2
Hartini retnaningsih	Permasalahan Corporate Social Responsibility (CSR) 36 / 5000 Translation results in the context of community empowerment	2015	Aspirations: Journal of social problems	Dpr ri	Sinta 2
Jamal wiwoho	Model  legal responsibility for the implementation of Corporate Social Responsibility (CSR) to improve welfare	2015	Sustainable Competitive Advantage(SCA)		General soedirman university
Sri suryaningsum,irhas effendy, r. Hendri gusaptono	Corporate social responsibility for improving the community's economy: The best model for mining companies	2015	Economic bulletin	Upn Veterans of Yogyakarta	GS*
Senen machmud	Study of the utilization of corporate social responsibility funds as	2015	Journal of economics, business & entrepreneurship	Stie pasundan	Sinta 4
Dede abdul hasyir	CSR planning in mining companies: The need to	2016	Maranatha accounting journal	christian university	Sinta 5
Laurensia andrini	Mandatory corporate social responsibility in indonesia	2016	pulpit of law	Ugm	Sinta 2
Hasbi zaidii roberta zufhi surya, juslan	Analysis of CSR strategies and synchronization with government programs in the development of the downstream Indragiri district	2016	Bappeda Journal	Bappeda indragiri hilir	GS*
Syamsul bahri	The role of CSR in supporting community development financing in the regions	2016	News journal	Ums	GS*
Widya hasan situmeang, mahmudi siwi	The relationship between the performance of the CSR program and the potential for social conflict in the community around the mining area	2017	Journal of communication science and community development	Ipb	GS*
Irfan ido	Mining corporate social responsibility (CSR) policy and its effect on community welfare (case study) in Koeono village…	2018	Journal publicuho	Universitas halu oleo	Sinta 6
Wezy ferlianta,angga praditya	Government collaboration with mining companies through community development and empowerment programs	2018	Policy analyst journal	Lembaga administrasi negara	GS*
M oktavia, m yusuf, a saptawan	The impact implementation program of corporate social resposibility of pt.  Kuansing inti makmur toward society development around mining area	2018	Sriwijaya journal of evironment	Universitas sriwijaya	Sinta 4
Mukti fajar	Corporate social responsibility in indonesia:regulation and implementation issues	2018	Journal of legal ethics and regulatory issues	Na	Scopus
Soonpeel edgar chang	Has indonesia's unique progessivism in mandating corporate social responsibility achieved its ends?	2018	Sriwijaya law review	Universitas sriwijaya	Scopus
Sri indarti	The role of Corporate Social Responsibility (CSR) towards the development micro and small and entrepreneurs using patnershipand community development program (pkbl) in pekanbaru	2018	International journal of law and management	Emerald publishing limited	Scopus
M chairul basrun umanailo	Integration of community empowerment models of community empowerment	2019	Proceeding of community development	Lipi	GS*
Denny riezky pratama	The role of social entrepreneurship in community empowerment: three stories from East Kutai	2019	Umbara: Indonesian journal of anthropology	Padjadjaran University	Sinta 4
Agustinus simandjuntak,susilo handoyo sri ayu astuti	Community empowerment in coal mining business activities based on the principle of justice in East Kalimantan	2019	De facto journal	Balikpapan University	GS*
Brenada sahat perdamean	Juridical analysis of community development and empowerment in mining business activities based on the Minister of Energy and Mineral Resources No. 41 of 2016	2019	Balikpapan University	University of Northern Sumatra	GS*
S. Suwandi, s.sukaris, abdurahman faris	CSR model in strengthening social capital and the role of community institutions	2019	Accountability	Hidayatullah Sharif Union	Sinta 4
Hari sutra disemadi,p prananingtyas	Corporate social responsibility (CSR) policy as a legal strategy in community empowerment in Indonesia	2020	Journal of Law	Bandung law high school	Sinta 2
Bambang ari satria	Collaborative governance in the ppm program mineral and coal in the village of Bukit Layang, Bangka Regency	2020	National conference on administrative science	Police Seize Bandung	GS*
Alfianita mariska asfandi, sundek hariyadi	Study on the success of corporate social responsibility on community resilience: empirical evidence in the nickel mining industry in Southeast Sulawesi, Indonesia	2020	Proceedings of the annual profession theme	Perhapi	GS*
Iskandar zainuddin rela, abd hair awang, zaimah ramil,yani taufik sarmila md.sum, mahazan muhammad	Effect of corporate social responsibility on community resilience: empirical evidence in the nickel mining industry insouth east sulawesi indonesia	2020	Sustainability(switzerland)	Mdpi	Scopus
Rabin ibnu zainal	Comparison of perceptions between stakeholders in CSR synergies and regional development programs	2020	Pareto: Journal of economics and public policy	Universitas prof. Dr.hazairin	Sinta 4
Jony puspa kusuma, andi lopa ginting	Kolaka district government strategy in managing corporate social responsibility (CSR) programsSS	2021	Scientific Journal of reflection	SMA pustek Banten	Sinta 4
*GS: Google Scholar, **Sinta: Journal Index Of The Ministry Of Cultural Education And Higher Education Technology Research

Discussion

The summary of bibliographic annotations is divided into several themes presented in the following figure 1:

CSR-PPM is a form of legally legitimized corporate obligation (Disemadi & Prananingtyas, 2020) to resolve conflicts (Situmeang & Siwi, 2017) environmental social issues around the mining industry (Astuti & Simandjuntak, 2018; Perdamean, 2019; Primawati, 2013; Suryaningsum, Effendy, Gusaptono, Effendy, & Gusaptono, 2015), creating community resilience (Rela et al., 2020), community self-reliance (Bahri, 2016; Indarti, 2018; Satria, 2020), strengthening social and institutional capital of the community (Suwandi, Sukaris, & Faris, 2019) as well as an alternative to regional development financing, given the limited financial capabilities of local governments (Bahri, 2016; Machmud, 2015). Nevertheless, the implementation of PPM CSR in Indonesia is inseparable from some criticisms in its implementation.

Criticism of the implementation of PPM CSR in regulatory design aspects includes: semantic interpretation of regulations (Gayo, 2012), weaknesses in planning aspects and compliance with global regulations such as MDG (Millennium Development Goals) and ISO development targets (Pranoto & Yusuf, 2016), the absence of objective parameters regarding the proper form of PPM program, aspects of community involvement in the planning of ppm forms and types of activities (Astuti & Simandjuntak, 2018; Perdamean, 2019), the need for evaluation mechanisms (Prayogo, 2011; Retnaningsih, 2015) and CSR fund transfer mechanism (Ido, 2018) to ensure the effectiveness of the program and legal certainty in the form of surveillance mechanisms from the government (Andrini, 2016; Wardah & Surya, 2016; Zaidi, Surya, & Juslan, 2016) related to sanctions if it is unable to meet CSR-PPM implementation obligations (Sanjaya, 2021; Wardah & Surya, 2016; Wiwoho, 2015).

Related to the CSR-PPM implementation model criticism includes cross-sector coordination (Government, Corporations and Communities) (Ferlianta & Praditya, 2018; Wardah & Surya, 2016; Zainal, 2020), synchronization with internal company rules (Fajar, 2018; Wardah & Surya, 2016; Zaidi et al., 2016) and development of the role of social entrepreneurship (Pratama, 2019) to maintain the sustainability of the CSR-PPM program. PPM governance improvement strategy can be encwuouraged so that the implementation of PPM CSR is more targeted by involving effective collaboration of stakeholders (Hasyir, 2016; Satria, 2020), synchronization with local government budgeting system (Umanailo, 2019) and intergration with regional development schemes through the Regional Medium Term Development Plan (RPJMD) (Kusuma & Ginting, 2021; Wardah & Surya, 2016; Zainal, 2020) to prevent program overlap with government development plans (Umanailo, 2019). Finally, attention is needed to the CSR-PPM regulatory structure in order to become a national and long-term dimensional regulation (Chang, 2018).

Conclusions and Limitations

Conclusions

This research resulted in several conclusions as follows:

1. CSR-PPM mining industry in Indonesia is a legitimized strategic instrument to overcome environmental social issues and contribute to regional development.

2. CSR-PPM regulatory design that governs the principles and details of clear guidelines is required as the basis for the development of the CSR-PPM model that is national and long-term dimensional.

3. The recommended implementation model is a collaboration model that involves cross-sector stakeholders by synchronizing internal corporate rules and aligning CSR-PPM attribute characteristics and stages with regional development schemes.

Limitations

This study has some limitations with the use of literature review methods from some studies that also use literature review methods. Bias can occur due to differences in context used by researchers in selected articles.

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